Agenda packet — Orange City Council, March 8, 2022 (part 1 of 4)

Thomas R. Hatch
Interim City Manager
Gary A. Sheatz
City Attorney
Pamela Coleman
City Clerk
MARK A. MURPHY
Mayor

KIMBERLEE NICHOLS
Mayor pro tem

CHIP MONACO
Councilmember

ARIANNA BARRIOS
Councilmember, District 1

JON DUMITRU
Councilmember, District 2

KATHY TAVOULARIS
Councilmember, District 3

ANA GUTIERREZ
Councilmember, District 5
AGENDA
City Council
March 08, 2022
5:00 PM Closed Session
6:00 PM Regular Session
City Council Chamber
300 E. Chapman Avenue
Orange, CA 92866
The City of Orange City Council welcomes you to this meeting and encourages your participation. Regular City Council meetings are held on the second Tuesday of each month at 6:00 p.m.

Agenda Information
The agenda contains a brief general description of each item to be considered. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda. The agenda and supporting documentation is available after 4:00 p.m. on the Thursday prior to the Council meeting on the City's website at www .cityoforange.org, at the City Clerk's Office located at 300 E. Chapman Avenue, and at the Main Public Library located at 407 E. Chapman Avenue. Written materials relating to an item on the agenda that are provided to the City Council after agenda packet distribution and within 72 hours before it is to consider the item will be made available for public inspection in the City Clerk ’s Office during normal business hours; at the City Council meeting; and made available on the City's website.

Public Participation
Regular meetings are televised live on Spectrum Cable Channel 3 and AT&T U -verse Channel 99, and streamed live and on-demand on the City's website at www.cityoforange.org.

Pursuant to Government Code Section 54954.3, members of the public may address the City Council on any agenda item before or during Council ’s consideration of the item, and on any other matters within the City Council’s jurisdiction by using any of the following methods:
1) In-Person
To speak on an item on the agenda, complete a speaker card indicating your name and address, and identifying the agenda item number or subject matter you wish to address. The card should be given to the City Clerk prior to the start of the meeting. General comments are received during the “Public Comments ” section at the beginning of the Regular Session. No action may be taken on off -agenda items unless authorized by law. Public Comments are limited to three (3) minutes per speaker unless a different time limit is announced. It is requested that you state your name for the record, then proceed to address the City Council. All speakers shall observe civility, decorum, and good behavior. (Continued on page 2)

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1 City Council Agenda March 8, 2022
2) Written Public Comments via email or eComment
Members of the public can submit their written comments electronically for City Council consideration by emailing them to CCpubliccomment@cityoforange .org with the subject line “Public Comment Item # (insert the item number relevant to the comment )” or “Public Comment Non -agenda Item” for general public comments. The public can also submit written comments on the City ’s eComment page. Please visit the City’s website at www .cityoforange.org, click Current City Council Agenda, then click the eComment link for this meeting. To ensure distribution to the City Council prior to consideration of the agenda, we encourage the public to submit comments by 3:00 p.m. the day of the meeting. All public comments will be provided to the Council, posted on the City’s website, and compiled as part of the record. 3) Public Comments via recorded voicemail message
Finally, the public can record their comments by calling (714) 744-2234 no later than 5:00 p.m. the day of the meeting. Recorded messages will not be played at the meeting, but will be provided to the Council and the caller's position will be summarized in the minutes.

In accordance with Ordinance No. 10-01, any person making personal, impertinent, slanderous or profane remarks or who becomes boisterous while addressing the Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council further during that meeting, unless permission to continue is granted by a majority vote of the Council.

Please contact the City Clerk’s Office at (714) 744-5500 with any questions.

ADA Requirements: In compliance with the Americans with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (714) 744-5500. Notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting.

REMINDER: Please silence all electronic devices while City Council is in session.

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2 City Council Agenda March 8, 2022
5:00 PM CLOSED SESSION

1. ROLL CALL

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, members of the public may address the Council on Closed Session items only. Public Comments are limited to three (3) minutes per speaker.

3. RECESS TO CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(a) & (d)(1) - Four cases 1) Name of case: Phyllis Schneider, et al. v. City of Orange Orange County Superior Court Case No. 30-2021-01234143
2) Name of case: Jorge Martin Gomez Sanchez v. City of Orange Orange County Superior Court Case No. 30-2021-01224015
3) Name of Case: Paula Acken, et al. v. City of Orange
Orange County Superior Court Case No. 30-2021-01207319
4) Name of Case: Mary's Kitchen, et al. v. City of Orange United States District Court Case No. 8:21-cv-01483-JVS-KES

4. CLOSED SESSION REPORT

5. ADJOURNMENT
The City Council will adjourn to the 6:00 p.m. Regular Session in the Council Chamber.

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3 City Council Agenda March 8, 2022
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER

1.1 INVOCATION
Ric Olsen, The Beacon Church

1.2 PLEDGE OF ALLEGIANCE
Councilmember Kathy Tavoularis

1.3 ROLL CALL

1.4 PRESENTATIONS/ANNOUNCEMENTS
Proclamation recognizing Ed Howard and the Orange Elks Lodge Drug Awareness Program
Friends of the Orange Public Library Presentation to the Orange Public Library 2021 Community Partnership Recognition

2. PUBLIC COMMENTS
At this time, members of the public may address the Council on matters not listed on the agenda within the subject matter jurisdiction of the City Council, provided that NO action may be taken on off -agenda items unless authorized by law. Public Comments are limited to three (3) minutes per speaker.

3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion approving the recommended action listed on the Agenda. Any member of the City Council, staff or the public may request an item be removed from the Consent Calendar for discussion or separate action. Unless otherwise specified in the request to remove an item from the Consent Calendar, all items removed shall be considered immediately following action on the remaining items on the Consent Calendar.

3.1. Waive reading in full of all ordinances on the Agenda.

Approve.

Recommended Action:

Staff ReportAttachments:

3.2. Confirmation of warrant registers dated February 3, 11, 17, and 25, 2022.

Approve.

Recommended Action:

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4 City Council Agenda March 8, 2022
Staff ReportAttachments:

3.3. Approval of meeting minutes of the City Council of the City of Orange for the January 29, 2022, Adjourned Regular Meeting; and February 8, 2022, Regular Meeting.

Approve minutes as presented.

Recommended Action:

Staff Report
January 29, 2022, Adjourned Regular Meeting minutes
February 8, 2022, Regular Meeting minutes
Attachments:

3.4. Investment Oversight Committee report for the period ending February 28, 2022.

Receive and file.

Recommended Action:

Staff Report
Monthly Treasurer's Report for October, November, and December 2021
Investment Report Period Ending January 31, 2022
Attachments:

3.5. Agreement with We the Creative for production of the City ’s quarterly publication, Our Orange.

Approve agreement with We the Creative in the amount not -to-exceed $ 311,203.70 for production of twelve issues of Our Orange; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Proposal Abstract Summary - Our Orange
Professional Services Agreement with We the Creative
Attachments:

3.6. Agreement with Joseph C. Truxaw and Associates, Inc. for land surveying services.

Approve the agreement with Joseph C. Truxaw and Associates, Inc. in the amount of $23,805 for land surveying services; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Location Map
Professional Services Agreement with Joseph C. Truxaw & Associates
Attachments:

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5 City Council Agenda March 8, 2022

3.7. Agreement with Park Consulting Group, Inc. for Enterprise Land Management System Procurement Services.

Approve professional services agreement with Park Consulting Group, Inc. in the amount not to exceed $ 57,500 for Land Management System Procurement Services, and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Professional Services Agreement with PCG
Attachments:

3.8. Agreement with L .A. Consulting, Inc. for evaluation of maintenance and operational practices.

Approve the agreement with L .A. Consulting in the amount of $ 47,655 for evaluation services for maintenance and operational practices, and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Agreement with L.A. Consulting, Inc.

Attachments:

3.9. First Amendment to Agreement with Azarvand ’s Building Department Services LLC for Building and Safety plan review services.

1. Approve a First Amendment to Professional Services Agreement with Azarvand ’s Building Department Services LLC, in the amount of $60,000; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $60,000 from the General Fund to expenditure account number 100.5013.51670.00000, Other Professional & Consulting Services.

Recommended Action:

Staff Report
First Amendment
Attachments:

3.10. First Amendment to Agreement with Yunex, LLC for On -Call Signal and Lighting Emergency Repair Services.

Approve the First Amendment to Agreement with Yunex, LLC for On -Call Signal and Lighting Emergency Repair Services, and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
First Amendment
Agreement with Siemens Mobility, Inc.

Transfer to Yunex, LLC
Attachments:

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6 City Council Agenda March 8, 2022

3.11. Second Amendment to Agreement with Sagecrest Planning and Environmental for planning staffing services.

Approve the second amendment to agreement with Sagecrest Planning and Environmental for planning staff services; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Second Amendment to Agreement with Sagecrest Planning and Environmental
Attachments:

3.12. Second Amendment to Agreement with Michael Baker International for Community Development, HOME Investments and Partnerships Program, and special grant administration consulting services.

Approve the Second Amendment to agreement with Michael Baker International, Inc . for Community Development Block Grant, HOME Investments and Partnerships Program, and general grant administration consulting services, and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Second Amendment to Agreement with Michael Baker International, Inc.

Attachments:

3.13. Second Amendment to Agreement with Iteris, Inc. for Traffic Engineering Services for Tustin Avenue /Rose Drive Corridor Regional Traffic Signal Synchronization Program Project.

Approve the second amendment to agreement with Iteris, Inc. for Traffic Engineering Services in an additional amount of $ 872,430; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Second Amendment
Iteris Estimate
Attachments:

3.14. Appropriation of $ 1,000 in designated grant funding received from Tangled Bank Studios and PBS Nature.

1. Accept into the City ’s revenue budget $1,000 in grant funds from Tangled Bank Studios and PBS Nature into revenue account number 100.2001.45495.30199, General Fund - #PlantWildflowers Initiative Grant.

2. Authorize the appropriation of $1,000 into expenditure account number Recommended Action:

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7 City Council Agenda March 8, 2022
100.2016.53340.30199 General Fund - #PlantWildflowers Initiative Grant.

Staff ReportAttachments:

3.15. Appropriation of $24,738 in revenue from user group sports field maintenance.

1. Accept into the City ’s revenue budget a $24,738 reimbursement into account number 100.7022.42480.00000, General Fund - User Group Maintenance Fees.

2. Authorize the appropriation of $24,738 into expenditure account number 100.7022.51424.00000, General Fund - User Group Maintenance Fees.

Recommended Action:

Staff ReportAttachments:

3.16. Appropriation of $ 26,000 in designated donation funding received from the Friends of the Orange Public Library.

1. Accept into the City ’s revenue budget a $26,000 donation from Friends of the Orange Public Library into revenue account number 100.2001.48390.19990, General Fund - Friends of the Library.

2. Authorize the appropriation of $26,000 to the following expenditure account numbers in the General Fund for Friends of the Orange Public Library (19990):
$ 5,000 100.2001.53301.19990 Library Books
5,000 100.2001.55131.19990 Furniture, Machinery, and Equipment 1,000 100.2016.53340.19990 Craft Supplies
15,000 100.2016.55131.19990 Furniture, Machinery, and Equipment Recommended Action:

Staff ReportAttachments:

3.17. Appropriation of $ 167,910.80 in State of California Office of Emergency Services funding received.

1. Accept into the City ’s revenue budget $167,910.80 in strike team reimbursement funds from the California Office of Emergency Services (Cal-OES), into the revenue account numbers for Cal -OES reimbursements as specified in Section 6 of the staff report.

2. Authorize the appropriation of $167,910.80 into the expenditure account number for Overtime-Safety as specified in Section 6 of the staff report.

Recommended Action:

Staff ReportAttachments:

3.18. Approval of specifications for Fire Hydrant Painting Services Project, and authorization to advertise for bids.

Approve the specifications and authorize advertising for bids for the Fire Hydrant Recommended Action:

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Painting Services project; Bid No. 21-22.29.

Staff Report
City of Orange Water Service Area Map
Attachments:

3.19. Claims for Damages.

Deny the following claims and refer to City Attorney and Claims Adjuster:

1. Mercury Insurance a/s/o Artlaine Russell

2. Diana Laura Hernandez Morales

3. Maryam Golbakhsh

4. Leah Aguirre

5. Val and Sandra Trowbridge

6. Alfred Jacobs

7. Lisa Cunning and Janet Jones
Recommended Action:

Staff ReportAttachments:

3.20. Final Acceptance of Bid No. 20-21.31, Well No. 28 Drilling Project; and authorization to file Notice of Completion.

Accept Well No. 28 Drilling Project as complete; and authorize staff to file Notice of Completion with the County Recorder.

Recommended Action:

Staff Report
Notice of Completion and Acceptance
Attachments:

3.21. Final Acceptance of Bid No. 20-21.02, Chapman Avenue and Flower Street Left Turn Signal Improvements - HSIPL-5073(087); and authorization to file Notice of Completion.

Accept Chapman Avenue and Flower Street Left Turn Signal Improvements - HSIPL-5073(087) as complete, and authorize staff to file Notice of Completion with the County Recorder.

Recommended Action:

Staff Report
Notice of Completion and Acceptance
Attachments:

3.22. Final Acceptance of Bid No. 21-22.01; W -703 Reservoir 4 Exterior Cathodic Protection System Installation Project; and authorization to file Notice of Completion.

Accept Reservoir 4 Exterior Cathodic Protection System Installation as complete and authorize staff to file Notice of Completion with the County Recorder.

Recommended Action:

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9 City Council Agenda March 8, 2022
Staff Report
Notice of Completion and Acceptance
Attachments:

3.23. Final Acceptance of Bid No. 20-21.01, Chapman Avenue and Feldner Road Left Turn Signal Improvements - HSIPL-5073(088); and authorization to file Notice of Completion.

Accept Chapman Avenue and Felnder Road Left Turn Signal Improvements - HSIPL-5073(088) as complete and authorize staff to file Notice of Completion with the County Recorder.

Recommended Action:

Staff Report
Notice of Completion and Acceptance
Attachments:

3.24. Final Acceptance of Bid No. 20-21.30, Glassell Street and Collins Avenue Left Turn Signal Improvements - HSIPL-5073(084); and authorization to file Notice of Completion.

Accept Glassell Street and Collins Avenue Left Turn Signal Improvements - HSIPL-5073(084) as complete, and authorize staff to file Notice of Completion with the County Recorder.

Recommended Action:

Staff Report
Notice of Completion and Acceptance
Attachments:

3.25. Award of Contract to Elegant Construction, Inc. for Fire Station 5 Bathroom Remodel; Bid No. 21-22.24 .

Approve the contract with Elegant Construction, Inc. in the amount of $ 183,339, representing an original bid amount of $ 159,425, plus a 15% contingency of $ 23,914 and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Bid Abstract
Contract with Elegant Construction, Inc.

Attachments:

3.26. Award of Contract to Beador Construction Company, Inc. for D -178; Tustin St ., Katella Ave. & La Veta Ave. Water Quality Storm Drain Improvement project; Bid No. 21-22.27.

1. Approve contract with Beador Construction Company, Inc . in the total amount of $828,630, representing an original amount of $753,300 plus a 10% contingency of $75,330, for Tustin St ., Katella Ave. & La Veta Ave. Water Quality Storm Drain Recommended Action:

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10 City Council Agenda March 8, 2022
Improvement, and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $250,000 from the Sanitation and Sewer Fund unreserved fund balance to expenditure account number 220.5022.56340.20485 Sanitation and Sewer - Tustin St ., Katella Ave. & La Veta Ave. Water Quality Storm Drain Improvement.

Staff Report
Bid Abstract
Contract with Beador Construction Company, Inc.

Attachments:

3.27. Award of Contract to New Dynasty Construction Co. for Police Headquarters (HQ) Lobby Roof and Heating, Ventilation and Air Conditioning (HVAC) Rehabilitation; Bid No. 21-22.13

1. Approve the contract with New Dynasty Construction Co. in the total amount of $3,822,744, representing an original amount of $3,475,221 plus a 10% contingency of $347,523 for Police HQ Lobby Roof and HVAC Rehabilitation, and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $2,500,000 from the Capital Bond Proceeds unreserved fund balance to expenditure account number 553.5028.56020.20444, Capital Bond Proceeds - Police Atrium.

Recommended Action:

Staff Report
Bid Abstract
Public Works Contract with New Dynasty Construction Co.

Attachments:

3.28. Authorize purchase of Dell server maintenance from Sidepath, Inc.

Approve the purchase of Dell Server maintenance from Sidepath, Inc. in the amount of $10,749.

Recommended Action:

Staff Report
Sidepath Quote No. SIDQ37569
Attachments:

3.29. Authorize purchase of Plaza Park Protective Bollards from single source provider, Marshalls LP USA.

Approve purchase order for parts and services with Marshalls LP USA, a single source vendor, in the amount of $150,000.

Recommended Action:

Staff Report
Mock Image of Plaza Bollards
Attachments:

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3.30. General Plan Annual Progress Report to the State of California.

Receive and file the 2021 General Plan Annual Progress Report for submittal to the State.

Recommended Action:

Staff Report
Attachment 1 - February 23, 2022, Planning Commission Staff Report Attachment 2 - 2010 General Plan Vision Statement
Attachment 3 - 2022 General Plan Progress Report
Attachment 4 - Annual Housing Element Implementation Progress Report
Attachments:

3.31. Status report regarding calendar year 2021 fire inspections of educational and selected residential occupancies in accordance with California Health and Safety Code Section 13146.4. Resolution No. 11379.

Adopt Resolution No. 11379. A Resolution of the City Council of the City of Orange acknowledging receipt of a report made by the Orange City Fire Department regarding performance of certain required annual inspections.

Recommended Action:

Staff Report
Resolution No. 11379
Health and Safety Code Section 13146.2, 13146.3, 13146.4 Attachments:

END OF CONSENT CALENDAR
* * * * * * * *

4. REPORTS FROM MAYOR MURPHY

4.1. Designation of voting delegates for the 2022 Southern California Association of Governments (SCAG) Regional Conference and General Assembly.

Designate Councilmember Jon Dumitru as the Delegate and Councilmember Kathy Tavoularis as the Alternate Representative to the Southern California Association of Governments (SCAG) Annual General Assembly scheduled to be held on May 5, 2022.

Recommended Action:

Staff ReportAttachments:

5. REPORTS FROM COUNCILMEMBERS
An opportunity for Councilmembers to make a brief announcement, report, or request .

No action(s) will be taken pursuant to Government Code Section 54954.2(a)(3).

5.1. Library/Multi-generational Center at Grijalva Park (Nichols)

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12 City Council Agenda March 8, 2022

5.2. Highlight Local Business (Gutierrez & Barrios)

6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS

6.1. Merging of the Investment Advisory Committee and Audit Committee.

Merge the Investment Advisory Committee and Audit Committee into a new committee entitled the Investment and Audit Committee, and direct staff to prepare the necessary Resolutions and Ordinances to effectuate this change.

Recommended Action:

Staff ReportAttachments:

7. ADMINISTRATIVE REPORTS

7.1. Agreement for Employment with City Manager Robert J. Houston.

Approve Agreement for Employment with City Manager Robert J. Houston.

Recommended Action:

Staff Report
Agreement for Employment
Attachments:

7.2. Agreement with the Orange Chamber of Commerce and Visitors Bureau for production of the Orange May Parade community event.

Approve the agreement with Orange Chamber of Commerce and Visitors Bureau for production of Orange May Parade, and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Agreement for production of Orange May Parade
Attachments:

7.3. Orange Police Department 2021 Crime Report/Overview of Statistics.

Receive and file.

Recommended Action:

Staff Report
2021 Annual Crime Report
Attachments:

8. REPORTS FROM CITY MANAGER

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9. LEGAL AFFAIRS

9.1. A Resolution of the City Council of the City of Orange Adopting an Expense and Reimbursement Policy for City Council Members for Actual and Necessary Expenses Incurred in the Performance of their Official Duties. Resolution No . 11380.

Adopt Resolution No. 11380. A Resolution of the City Council of the City of Orange Adopting an Expense and Reimbursement Policy for City Council Members for Actual and Necessary Expenses Incurred in the Performance of their Official Duties.

Recommended Action:

Staff Report
Resolutin No. 11380
Attachments:

10. PUBLIC HEARINGS
The following item will begin no earlier than 7:00 p.m.

10.1. Accept public comments regarding redistricting and consider staff ’s request for a continuance to a date certain to discuss possible adoption of a district map.

1. Accept public comments regarding the redistricting maps, and;

2. Approve staff ’s request to continue consideration of the possible adoption of a district map to a meeting on March 22, 2022.

Recommended Action:

Staff Report
Map 121 and additional focus maps from February 8th meeting Attachments:

11. ADJOURNMENT
The City Council will adjourn to a meeting on Tuesday, March 22, 2022, at 6:00 p.m., with Closed Session beginning at 5:00 p.m., if necessary.

The next Regular City Council meeting will be held on Tuesday, April 12, 2022, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.

I, Pamela Coleman, CMC, City Clerk for the City of Orange, do hereby declare, under penalty of perjury, that a full and correct copy of this agenda was posted pursuant to Government Code Section 54950 et. seq., at the following locations: Orange Civic Center kiosk and Orange City Clerk's Office at 300 E. Chapman Avenue, Orange Main Public Library, 407 E. Chapman Avenue, Police facility at 1107 North Batavia Street, and uploaded to the City's website www.cityoforange.org.

Date posted: March 3, 2022

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14 Agenda Item
City Council
Item #: 3.1. 3/8/2022 File #: 22-0094
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

State law requires that all ordinances be read in full either at the time of the introduction or at the time of passage, unless a motion waiving further reading is adopted by a majority of the City Council (Gov.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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15 Agenda Item
City Council
Item #: 3.1. 3/8/2022 File #: 22-0094
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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16 Agenda Item
City Council
Item #: 3.2. 3/8/2022 File #: 22-0100
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Confirmation of warrant registers dated February 3, 11, 17, and 25, 2022.

2. SUMMARY
The warrant writings for the above listed dates are on file in the Office of the City Clerk for Council reference.

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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17 Agenda Item
City Council
Item #: 3.2. 3/8/2022 File #: 22-0100
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Confirmation of warrant registers dated February 3, 11, 17, and 25, 2022.

2. SUMMARY
The warrant writings for the above listed dates are on file in the Office of the City Clerk for Council reference.

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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18 Agenda Item
City Council
Item #: 3.3. 3/8/2022 File #: 22-0099
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Approval of meeting minutes of the City Council of the City of Orange for the January 29, 2022, Adjourned Regular Meeting; and February 8, 2022, Regular Meeting.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meeting(s).

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· January 29, 2022, Adjourned Regular Meeting minutes
· February 8, 2022, Regular Meeting minutes
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19 Agenda Item
City Council
Item #: 3.3. 3/8/2022 File #: 22-0099
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Approval of meeting minutes of the City Council of the City of Orange for the January 29, 2022, Adjourned Regular Meeting; and February 8, 2022, Regular Meeting.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meeting(s).

3. RECOMMENDED ACTION
Approve minutes as presented.

MINUTES - DRAFT
The City Council of the City of Orange, California convened on January 29, 2022, at 11:00 a.m. in an Adjourned Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.
11:00 AM CLOSED SESSION

1. OPENING/CALL TO ORDER
Mayor Murphy called the meeting to order at 11:00 a.m.

1.1 ROLL CALL

Present: Nichols, Monaco, Barrios, Dumitru, and Murphy

Absent: Tavoularis, and Gutierrez

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 11:02 a.m. with all Members present, except Councilmember Tavoularis who joined Closed Session at 11:20 a.m. and Councilmember Gutierrez who joined Closed Session at 11:50 a.m., to discuss the following:
a. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957(b).

Title: City Manager

4. CLOSED SESSION REPORT
None

5. ADJOURNMENT
There being no further business, the meeting was adjourned at 3:45 p.m. ________________________ _________________________ PAMELA COLEMAN MARK A. MURPHY

CITY CLERK MAYOR

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21 City of Orange
City Council
February 08, 2022

MINUTES - DRAFT
The City Council of the City of Orange, California convened on February 8, 2022, at 5:00 p.m. in a Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California. 5:00 PM CLOSED SESSION

1. ROLL CALL

Present: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and Murphy

Absent: None

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 5:03 p.m. with all Members present to discuss the following:
a. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957(b).

Title: City Manager
b. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(a)&(d)(1)
Name of Case: Mary's Kitchen, et al. v. City of Orange
United States District Court Case No. 8:21-cv-01483-JVS-KES

4. CLOSED SESSION REPORT
None

5. ADJOURNMENT
Closed Session was adjourned at 5:45 p.m.

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22 City Council Minutes - Draft February 8, 2022
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER
Mayor Murphy called the meeting to order at 6:03 p.m.

1.1 INVOCATION
Given by Pastor Danny Kurimay from Bridge Community Church.

1.2 PLEDGE OF ALLEGIANCE
Led by Councilmember Jon Dumitru.

1.3 ROLL CALL

Present: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and Murphy

Absent: None

1.4 PRESENTATIONS/ANNOUNCEMENTS
Proclamation honoring Lorenzo Ramirez and the 75th Anniversary of Mendez v .

Westminster School District.

Proclamation of Support for County Efforts to Combat Fentanyl.

Orange County Housing Finance Trust Presentation.

With Council concurrence, Mayor Murphy reordered Item 9.1 to be heard before Public Comments. He announced that staff has requested to continue the item to a date uncertain.

9.1. Introduction and first reading of an Ordinance of the City Council of the City of Orange amending Title 2, Chapter 2.10 of the Orange Municipal Code by deleting Section 2.10.090 to eliminate the current prohibition against receiving contributions from candidate controlled committees. Ordinance No. 01-22.

During discussion, Councilmember Tavoularis requested staff research why other local municipalities do not prohibit contributions from candidate controlled committees to a City Candidate Committee.

Written Public Comments
The following emailed in opposition of the proposed amendment: Shirley Grindle and Dan Slater.

A motion was made by Councilmember Monaco, seconded by Councilmember Dumitru, to continue Item 9.1 to a date uncertain. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Gutierrez, and MurphyAyes:

TavoularisNoes:

NoneAbsent:

2. PUBLIC COMMENTS
Public Speakers
Tim Smith acknowledged and applauded the City's first responders.

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John Russo commended the City's 24/7 app and thanked City staff for their responsiveness; he also spoke in opposition of amending the City's campaign reform ordinance.

The following spoke in opposition of a proposed cemetery near Palmyra Avenue :

Roland Sevilla, Bernie Galasso, Silvia San Nicolas, Bill Vaughter, and Sharon Galasso.

Written Public Comments
Janice Brownfield emailed about the importance of trees in combating climate change.

Gail Sevilla emailed in opposition of a proposed cemetery near Palmyra Avenue.

RECESS: The City Council recessed at 6:59 p.m. and reconvened at 7:10 p.m. with all Members present.
(Item 10.1 was reordered to be heard after Public Comments.)

10. PUBLIC HEARINGS
The following item began at 7:10 p.m.

10.1. Public Hearing to Review Draft Focus District Maps and Public Maps.

Senior Assistant to the City Manager Aaron Schulze announced in Spanish that live translation services were available upon request.

City Attorney Sheatz introduced the item and Dr. Justin Levitt, National Demographics Corporation, provided a brief staff report.

Mayor Murphy opened the Public Hearing at 7:12 p.m.

Public Speakers
Sammy Rodriguez spoke in support of Map 119.

John Russo raised concerns with the Orange Mall and neighborhoods in the Tustin corridor being split into different districts.

Carole Walters raised concerns with the large geographical areas of some of the districts.

Lisa Ackerman Baldwin raised concerns with the Orange Mall and Tustin area being split into different districts and spoke in support of Maps 122, 123, 124, and 108.

Written Public Comments
Laura Dewey emailed in support of Map 119 and keeping Districts 4 and 6 intact.

Paula Acken emailed in support of Maps 119, 120, 124, and 127.

Alice Chrystie emailed in support of Map 119 and keeping Districts 4 and 6 intact.

Laura Kennedy emailed in support of keeping Districts 4 and 6 intact.

Shari Carter emailed in support of Maps 119, 120, 124, and 127, and keeping the historic district in District 1.

Jackie Hanson emailed in support of Map 119.

Alan Kinkaid emailed in support of Maps 119, 120, 124, and 127, and keeping Districts 4 and 6 intact.

John and Celine Allen emailed in support of Map 119 and keeping Districts 4 and 6

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intact.

Robert Nieto emailed in support of Map 119 and keeping Districts 4 and 6 intact.

Scott Cosel emailed in support of Map 119 and keeping Districts 4 and 6 intact.

Steven Iversen emailed in support of keeping Districts 4 and 6 intact.

Nathan Swanek emailed in support of Maps 119, 120, 124, and 127, and keeping Districts 4 and 6 intact.

Cathy Clark emailed in support of Maps 119, 120, 124, and 127, and keeping Districts 4 and 6 intact.

Joe and Lorraine Nieblas emailed in support of Map 119.

Ilyse Davidoff emailed in support of Map 119.

Sharon Galasso emailed in support of Maps 119, 120, 124, and 127, and keeping Districts 4 and 6 intact.

Francine Hintzman emailed in support of keeping Districts 4 and 6 intact.

Harold Hata emailed in support of Map 119 and keeping Districts 4 and 6 intact.

Denis Bilodeau, Orange Taxpayers Association, emailed in support of Map 121.

Lorena and Matthew Hopp emailed in support of Map 119.

Jane Gottlieb emailed in support of keeping Districts 4 and 6 intact.

Thomas Rapport emailed in support of keeping Districts 4 and 6 intact.

Rosemarie Reynolds emailed in support of keeping Districts 4 and 6 intact.

Philip Harrington emailed in support of Map 119.

David Oldfield emailed in support of Map 119.

Mayor Murphy closed the Public Hearing at 7:25 p.m.

Councilmember Barrios made a motion to approve Map 119 as the final map. The motion was seconded by Councilmember Gutierrez.

During deliberation, Council discussed forming districts based on population and not geography, and keeping communities of interest together.

Councilmember Dumitru made a substitute motion to approve Map 121 stating that Map 121 increases CVAP (citizen voting age population) for District 2 by 2% and keeps District 5 CVAP at 36%.

A motion was made by Councilmember Dumitru, seconded by Councilmember Monaco, to select Map 121 as the final map. The motion carried by the following vote:

Nichols, Monaco, Dumitru, Tavoularis, and MurphyAyes:

Barrios, and GutierrezNoes:

NoneAbsent:

RECESS: The City Council recessed at 8:39 p.m. and reconvened at 8:55 p.m. with all Members present.

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3.1. Waive reading in full of all ordinances on the Agenda.

ACTION: Approved.

3.2. Confirmation of warrant registers dated January 6, 14, 20, and 28, 2022.

ACTION: Approved.

3.3. Approval of meeting minutes of the City Council of the City of Orange for the January 11, 2022, Regular Meeting; and January 15, 2022, Adjourned Regular Meeting.

ACTION: Approved minutes as presented.

3.4. Second Amendment to the Agreement with Lyons Security Services Inc ., for additional park security services.

ACTION: Approved the second amendment with Lyons Security Services Inc ., for additional park security services in the amount not to exceed $40,000.

3.5. Authorize purchase of one Storage Area Network (SAN) for the Civic Center datacenter and related support services from Sidepath, Inc.

ACTION: Approved the purchase of the Storage Area Network (SAN) and the accompanying five year service plan for the Civic Center datacenter from Sidepath, Inc., in the amount of $176,738.

3.6. Agreement with the County of Orange for Fiscal Year 2020-2021 Edward Byrne Memorial Justice Assistance Grant.

ACTION: 1) Approved the purchase of handguns from ProForce Law Enforcement for $12,433; 2) Approved the agreement with the County of Orange in the amount of $12,579 for Fiscal Year 2020-2021 Edward Byrne Memorial Justice Assistance Grant Program and authorized the City Manager to execute on behalf of the City; 3) Accepted into the City ’s revenue budget a $ 12,579 grant from the County of Orange, into revenue account number 353.4011.45150.30193, Federal Grants - 2021 JAG; and 4) Authorized the appropriation of $12,579 into expenditure account number 353.4011.55131.30193, Equipment - 2021 JAG.

3.7. Agreement with Complete Paperless Solutions, LLC for Laserfiche annual maintenance and additional implementation of an electronic election candidate processing portal.

ACTION: Approved the agreement with Complete Paperless Solutions, LLC in the amount of $ 103,482.80 for Laserfiche support and additional modules, providing product updates and enhancements for 12 months, and authorized the Mayor and City

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Clerk to execute on behalf of the City.

3.8. Second Amendment to Master Agreement No. 7611 with Siemens Industry, Inc . for maintenance of surveillance cameras, hardware infrastructure, and the Genetec license supporting the City ’s existing Genetec security platform for the Metrolink Station.

ACTION: Approved the agreement with Siemens Industry, Inc. in the total amount of $46,206.35 for maintenance of surveillance cameras, hardware infrastructure, and the Genetec license; and authorized the Mayor and City Clerk to execute on behalf of the City.

3.9. Appropriation of $ 118,181 in grant funding received for the 2021-2022 North Orange County Public Safety Collaborative Program.

Note: Councilmember Barrios abstained due to a potential conflict with employment.

ACTION: 1) Accepted into the City ’s revenue budget $ 118,181 in grant funding from the Board of State and Community Corrections, into revenue account number 100.4011.45290.30189, General Fund, North Orange County Public Safety; and 2) Authorized the appropriation of $ 118,181 into the following expenditure accounts of the General Fund- North Orange County Public Safety: $40,000 into 100.4021.50221.30189, Overtime - Safety; $38,181 into 100.5021.50222.30189 , Overtime - Miscellaneous; and $ 40,000 into 100.7022.51700.30189, Contractual Services.

3.10. Appropriation of $ 1,566,207.43 in State of California Office of Emergency Services funding received.

ACTION: 1) Accepted into the City ’s revenue budget $ 1,566,207.43 in strike team reimbursement funds from the California Office of Emergency Services (Cal-OES), into the revenue account numbers for Cal-OES reimbursements as follows:

Cal-OES reimbursements (revenue account 100.3024.48212.xxxxx):
$ 644,991.57 .40274 - Dixie Fire
433,304.89 .40277 - Monument Fire
426,977.71 .40278 - Caldor Fire
8,179.49 .40279 - Airola Fire
20,194.00 .40281 - Washington Fire
5,467.14 .40282 - 2021 ONC IMT Staging
27,092.63 .40285 - Alisal Fire
2) Authorized the appropriation of $ 1,547,602.94 into the expenditure account numbers for Overtime-Safety as follows:

Overtime-Safety (expenditure account 100.3024.50221.xxxxx):
$ 635,288.14 .40274 - Dixie Fire
428,927.77 .40277 - Monument Fire
422,453.77 .40278 - Caldor Fire
8,179.49 .40279 - Airola Fire
20,194.00 .40281 - Washington Fire
5,467.14 .40282 - 2021 ONC IMT Staging
27,092.63 .40285 - Alisal Fire

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3) Authorized the appropriation of $ 18,604.49 into the expenditure account numbers for Strike Team Expenditures as follows:

Strike Team (expenditure account 100.3024.53860.xxxxx):
$ 9,703.43 .40274 - Dixie Fire
4,377.12 .40277 - Monument Fire
4,523.94 .40278 - Caldor Fire

3.11. Acceptance of 19 grant funded Wi -Fi hotspots with data plans, 13 Chromebook laptops, and 12 accessory kits for the Library ’s lending collection, valued at $14,500, received from California State Library and Southern California Library Cooperative.

ACTION: 1) Accepted into the City ’s revenue budget $ 14,500 in grant funds from California State Library and Southern California Library Cooperative into revenue account number 100.2001.45290.30192, General Fund - Home Connectivity Kit Project; and 2) Authorized the appropriation of $ 14,500 in grant funds into expenditure account number 100.2004.55131.30192 - Furniture, Machinery, Equipment for General Fund - Home Connectivity Kit Project.

3.12. Approval of plans and specifications for D -178; Tustin St ., Katella Ave. & La Veta Ave. Water Quality Storm Drain Improvement project; and authorization to advertise Bid No. 21-22.27.

ACTION: Approved plans and specifications and authorized advertising for bids for the Tustin Street, Katella Avenue & La Veta Avenue Water Quality Storm Drain Improvement project.

3.13. Approval of plans and specifications for Annual Pavement Maintenance at Various Locations, Fiscal Year 2021-2022; and authorization to advertise Bid No . 21-22.28, SP-4183.

ACTION: Approved plans and specifications and authorized advertising for bids for Annual Pavement Maintenance at Various Locations, Fiscal Year 2021-2022.

3.14. Approval of plans and specifications for Community Development Block Grant El Modena Branch Library Restroom Remodel, and authorization to advertise for bids.

ACTION: Approved plans and specifications and authorized advertising for bids for El Modena Branch Library Restroom Remodel Project; Bid No. 21-22.26.

3.15. Claims for Damages.

ACTION: Denied the following claims and refer to City Attorney and Claims Adjuster:

1. Roman Martinez Barrera

2. Joseph & Corinne Conard

3. Holly Morales

4. Sonia Beatriz Costa

5. Ashley Kumar Saroya

6. Allstate a/s/o Chau Vu

7. Erika Betancourt

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3.16. Final Acceptance of Bid No. 20-21.36, Annual Sewer Line Replacement/Maintenance FY 20-21; and authorization to file Notice of Completion.

ACTION: Accepted Annual Sewer Line Replacement /Maintenance FY 20-21 project (S-244) as complete, and authorized staff to file Notice of Completion with the County Recorder.

3.17. Sole source procurement and installation of three emergency vehicle preemption system units.

ACTION: Authorized the sole source purchase and installation of three Opticom GPS Emergency Vehicle Preemption Systems from DDL Traffic, Inc. for an amount not to exceed $33,350.

3.18. Authorize purchase of landscape supplies from SiteOne Landscape Supply.

ACTION: Approved a blanket purchase order of $ 60,000 with SiteOne Landscape Supply.

3.19. Authorize purchase of annual VMware support at both the Civic Center and Orange Police Department datacenters from Sidepath, Inc.

ACTION: Approved the purchase of VMware annual support for both the Civic Center and Orange Police Department datacenters from Sidepath, Inc. in the amount of $17,053.

3.20. Monthly Treasurer’s Reports for October, November, and December 2021.

ACTION: Received and filed.

3.21. City Traffic Commission Activity Report for 2021
ACTION: Received and filed.

3.22. Request to the Orange County Transportation Authority for a 24-month delay for Tustin Avenue /Rose Drive Corridor Regional Traffic Signal Synchronization Program Project. Resolution No. 11371.

ACTION: Adopted Resolution No. 11371. A Resolution of the City Council of the City of Orange approving a request to pursue a project delay from the Orange County Transportation Authority for the Tustin Avenue /Rose Drive Corridor - Project P Regional Traffic Signal Synchronization Program.

3.23. Approval of temporary street closures for approved special events. Resolution No. 11375.

Staff requested amending the proposed resolution to revise the start time for the closure for the Street Fair to 3:00 a.m. on Thursday, September 1, 2022. The staff report indicated in error that the closure would start at 7:00 p.m. on Thursday, September 1, 2022.

Written Public Comment
Adam Feliz, President of Orange International Street Fair, Inc ., emailed requesting a time change to the start of the street closure for the Street Fair as the staff reported

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indicated the street closure would start at 7:00 p.m. on Thursday, September 1.

ACTION: 1) Adopted amended Resolution No .11375 with the revised start time of 3:00 a.m. on Thursday, September 1, 2022, for the closure for the Orange International Street Fair. A Resolution of the City Council of the City of Orange approving the temporary closure of sections of public streets for approved special events. 2) Approved closure of municipal parking lots and temporary suspension of neighborhood permit parking restrictions for certain events and dates occurring in Fiscal Year 2022-2023.

3.24. Amendment to the Master Schedule of Fees and Charges to adjust the annual Paramedic Subscription Program fee. Resolution No. 11373.

Item 3.24 was removed from the Consent Calendar for separate consideration by Councilmember Barrios.

During discussion, Council requested staff explore ways to promote the program to residents including multi -family units and to make it easier for residents to pay for the program and utilities all on one bill.

Councilmember Barrios left the dais at 9:04 p.m. and returned to the dais at 9:07 p.m.

ACTION: A motion was made by Councilmember Dumitru, seconded by Councilmember Gutierrez, to adopt Resolution No. 11373 entitled: A Resolution of the City Council of the City of Orange amending the Master Schedule of Fees and Charges to adjust the annual Paramedic Subscription fee. The motion carried by the following vote:

Nichols, Monaco, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

BarriosAbsent:

3.25. A Resolution of the City Council of the City of Orange amending Resolution No . 11278 between the City of Orange and the Water Division Employees ’ Association (WDEA), to replace Appendix A. Resolution No. 11374.

ACTION: Adopted Resolution No .11374. A Resolution of the City Council of the City of Orange amending Resolution No. 11278 to reflect the correct monthly salaries in the January 2, 2022 salary table.

Approval of the Consent Calendar
Councilmember Barrios abstained from Item 3.9. Item 3.24 was removed from the Consent Calendar and heard separately. Item 3.23 was approved as amended. All other items were approved as recommended.

A motion was made by Councilmember Monaco, seconded by Mayor pro tem Nichols, to approve the Consent Calendar. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

END OF CONSENT CALENDAR
* * * * * * * *

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4. REPORTS FROM MAYOR MURPHY
None

5. REPORTS FROM COUNCILMEMBERS
Mayor pro tem Nichols reported the nation is facing a blood shortage. She mentioned several locations in Orange that are holding blood drives during the months of February and March such as Santiago Canyon College, El Modena and Taft Library Branches, and Orange Unified School District. Red Cross' website has more information on dates and locations.

6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS
None

7. ADMINISTRATIVE REPORTS

7.1. Support of AB 1595 Allowing the Development of a State -Operated Veterans Cemetery in Orange County. Resolution No. 11372.

A motion was made by Mayor pro tem Nichols, seconded by Councilmember Monaco, to: 1) Adopt Resolution No. 11372 entitled: A Resolution of the City Council of the City of Orange in support of AB 1595 allowing the development of a state -operated veterans cemetery in Orange County; and 2) Authorize the Mayor to sign the letter of support for Assembly Bill 1595. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

7.2. An overview of the Code Compliance Division’s operations Interim Community Development Director Susan Galvan provided an overview of Code Enforcement staffing and operations.

A motion was made by Mayor pro tem Nichols, seconded by Councilmember Dumitru, to receive and file report. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

7.3. Status of Fiscal Year 2021-22 budget and preliminary projections for Fiscal Year 2022-23 budget preparation.

Assistant Finance Director Katrin Bandhauer provided an overview on the status of the current fiscal year budget, and reviewed the process for the 2022-23 budget preparation.

A motion was made by Mayor Murphy, seconded by Councilmember Dumitru, to receive and file report, and approve the following:
1) Authorize the transfer of $ 3,500,000 from the unreserved fund balance of the General Fund to the Pension Stabilization Reserve (760). 2) Authorize the transfer of $ 7,000,000 from the unreserved fund balance of the General Fund to the Capital Projects Fund (500).

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3) Authorize the transfer of $ 4,800,000 from the unreserved fund balance of the General Fund to the Business Investment Fund (115).
4) Authorize the transfer of $ 54,000 from the General Fund expenditure account n u m b e r 1 0 0 . 4 0 2 1 . 5 0 0 0 2 . 0 0 0 0 0 t o e x p e n d i t u r e a c c o u n t n u m b e r 100.6032.50002.00000.
5) Authorize the appropriation of $ 60,000 from the General Fund unreserved fund balance to expenditure account number 100.5013.51670.00000, Other Professional & Consulting Services.
6) Authorize the appropriation of $ 150,000 from the unreserved fund balance of the Capital Project Fund (500) to expenditure account number 500.5032.56100.16302, Minor Traffic Devices.
7) Authorize the appropriation of $ 35,000 from the Worker's Compensation Fund (730) unreserved fund balance to expenditure account number 730.0312.52232.00000, Worker's Compensation Premium.
8) Authorize the appropriation of $ 65,000 from the Liability Fund (740) unreserved fund balance to expenditure account 740.0312.52011.00000, Public Liability Premium. 9) Authorize the appropriation of $ 50,000 from the Liability Fund (740) unreserved fund balance to expenditure account 740.0312.52320.00000, Property Damage. 10) Authorize the appropriation of $ 400,000 from the Liability Fund (740) unreserved fund balance to expenditure account 740.0312.52310.00000, Liability Claims Paid. 11) Accept in the City's revenue budget $ 268,236 in funds from the American Rescue Plan.
12) Authorize the appropriation of $ 268,236 into the following expenditure account numbers for salaries and benefits:
$102,500 101.3099.50002.00000
$165,736 101.4099.50002.00000
13) Authorize the following changes to the City's Schedule of Positions:
a. Reclassify the Assistant City Attorney /Risk Manager, Position 094-002, to Senior Assistant Attorney in the City Attorney's office.
b. Reinstate the Risk Manager position in the City Attorney's Office. c. Authorize the addition of an Administrative Analyst I position in the Fire Department. d. Transfer Police Code Enforcement Officer, Position 397-001, from the Police Department to the Community Development Department and reclassify to Code Compliance Officer.
e. Reclassify Code Compliance Officer, Position 340-001, to Senior Code Compliance Officer in the Community Development Department.
f. Reclassify Permit Technician to Permit Supervisor in the Public Works Department.

The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

A motion was made by Mayor Murphy, seconded by Councilmember Monaco, to: 1) Adopt Resolution No. 11376 entitled: A Resolution of the City Council of the City of Orange amending Resolution No. 11272 between the City of Orange and Orange Management Association; and 2) Adopt Resolution No. 11377 entitled: A Resolution of the City Council of the City of Orange rescinding Resolution No. 11366 and amending the citywide pay schedule in accordance with the requirements of California Code of

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Regulations, Title 2, Section 570.5.

The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

8. REPORTS FROM CITY MANAGER
None

9. LEGAL AFFAIRS

Item 9.1 was previously reordered to be heard before Public Comment.

PUBLIC HEARINGS

10.1. Public Hearing to Review Draft Focus District Maps and Public Maps.

Item 10.1 was previously reordered to be heard after Public Comment.

10.2. Public Hearing to receive and file report summarizing measures taken to evaluate impacts addressed by urgency Ordinance No. 02-21; and to consider adoption of second extension of urgency Ordinance No. 02-21.

Mayor Murphy opened the Public Hearing at 9:36 p.m.; there being no speakers, Mayor Murphy closed the Public Hearing at 9:36 p.m.

A motion was made by Mayor pro tem Nichols, seconded by Councilmember Monaco, to: 1) Receive and file report of measures taken; and 2) Adopt Ordinance No. 02-21-B.

The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

Ordinance No. 02-21-B. Second Extension of a Revised Urgency Ordinance of the City Council of the City of Orange prohibiting the addition of three or more bedrooms or three or more bathrooms to a primary residence use on lots less than 12,000 square feet, and adding definitions of dormitory and student housing.

10.3. Public Hearing to consider an Agreement to Convey Land with OSH Katella Terrace LLC accepting a land donation of the property located at 1249 E. Katella Avenue from OSH Katella, LLC to facilitate the development of the Katella Terrace Apartments senior affordable housing project.

Mayor Murphy opened the Public Hearing at 9:43 p.m.; there being no speakers, Mayor Murphy closed the Public Hearing at 9:44 p.m.

During discussion, Council directed staff to include location maps as attachments to future reports for similar projects.

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A motion was made by Councilmember Monaco, seconded by Councilmember Tavoularis, to: 1) Approve the Agreement to Convey Land with OSH Katella Terrace, LLC and authorize the Mayor and City Clerk to execute on behalf of the City; 2) Authorize the City Manager to approve and execute documents approved as to form by the City Attorney necessary to carry out the Agreement to Convey Land and the acquisition of the property by the City, including without limitation escrow documents, title documents, conveyance documents and certificate of acceptance; and 3) Authorize the City Manager to sign a commitment letter to Katella Terrace LP that is consistent with the provisions of the Agreement to Convey Land. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

10.4. Public Hearing to consider General Plan Amendment No. 2022-0001; City of Orange 2021-2029 Housing Element Update.

Assistant Community Development Director Anna Pehoushek provided a staff report and answered Council's questions.

Mayor Murphy opened the Public Hearing at 10:03 p.m.

Public Speakers
Shirley Grindle spoke against using open space for housing.

John Moore spoke against using open space for housing.

Written Public Comments
The following emailed encouraging the City to develop and implement policies that will effectively produce lower income housing: Bonnie Robinson, David Stevens, Michele Schroeder, David Sonneborn, Sharon O'Hara, The Kennedy Commission Executive Director Cesar Covarrubias, and Californians for Homeownership Matthew Gelfand.

The following emailed concerns with the lack of affordable housing in the City of Orange: Susan Guilford and Patricia Snider.

Mayor Murphy closed the Public Hearing at 10:23 p.m.

During Council discussion, several Councilmembers stated they did not support inclusionary zoning ordinances as these ordinances can potentially inflate pricing.

During further discussion, staff was directed to explore notifying land owners of benefits to affordable housing development.

A motion was made by Councilmember Barrios, seconded by Councilmember Gutierrez, to adopt Resolution No. 11378. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

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Resolution No. 11378. A Resolution of the City Council of the City of Orange approving General Plan Amendment No. 2022-0001 adopting the City of Orange 2021-2029 General Plan Housing Element.

11. ADJOURNMENT
There being no further business, the meeting was adjourned at 10:42 p.m. in Memory of Lorenzo Ramirez.

The next Regular City Council meeting will be held on Tuesday, March 8, 2022, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.
______________________ _________________________ PAMELA COLEMAN MARK A. MURPHY

CITY CLERK MAYOR

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35 Agenda Item
City Council
Item #: 3.4. 3/8/2022 File #: 22-0119
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Richard A. Rohm, City Treasurer
Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Investment Oversight Committee report for the period ending February 28, 2022.

2. SUMMARY
This report summarizes the activity of the Investment Oversight Committee.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.

6. DISCUSSION AND BACKGROUND
As required by the Orange Municipal Code Section 2.50.020, the Investment Oversight Committee reports to the City Council summarizing the Committee meetings and submitting any recommendations of the Investment Advisory Committee.

Since the last Investment Oversight Committee Report, the Investment Oversight Committee held a meeting on February 23. 2022. This meeting was combined with the Investment Advisory Committee meeting. The purpose of this meeting was to review current investment activity and to discuss related Treasury issues.

Following is a summary of the specific items discussed at this meeting:
· Investment Rates and Portfolio Updates - Rate reports were presented for the period December 2020 through December 2021. There were discussions regarding the interest rate environment with Chandler Asset Management (Chandler), the City’sInvestment Management firm, as there are high expectations that the Federal government will raise rates during the latter part of 2022. In addition, attention was given to the recent interest rate trends in both the U.S. Treasury market and in the Local Agency Investment Fund (LAIF). An update on the investment portfolio was also presented.
· Treasurer’s Investment Reports - The investment activity for the months of October, City of Orange Printed on 3/3/2022Page 1 of 2
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36 Item #: 3.4. 3/8/2022 File #: 22-0119
· Treasurer’s Investment Reports - The investment activity for the months of October, November, and December 2021, and the City’sposition in each category of investment that includes Treasuries, Agencies, and Pooled Investments was discussed. This report was also on the City Council agenda for the February 8 meeting as item 3.20. Chandler prepared a presentation to the Committee regarding their investment report through January 31, 2022. · Investment Policy Update - Chandler provided an analysis to the Investment Oversight and Advisory Committees regarding proposed changes to the Investment Policy, both committees approved all but one of said changes. Staff will be preparing a report with the proposed changes at the April City Council meeting.
· Economic Updates - Staff gave a brief economic update and Chandler provided their economic update from an investment purview.

7. ATTACHMENTS
· Monthly Treasurer’sReports for October, November, and December 2021 (February 8, 2022, City Council Staff Report)
· Investment Report Period Ending January 31, 2022
City of Orange Printed on 3/3/2022Page 2 of 2
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37 Agenda Item
City Council
Item #: 3.4. 3/8/2022 File #: 22-0119
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Richard A. Rohm, City Treasurer
Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Investment Oversight Committee report for the period ending February 28, 2022.

2. SUMMARY
This report summarizes the activity of the Investment Oversight Committee.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.

Following is a summary of the specific items discussed at this meeting:
· Investment Rates and Portfolio Updates - Rate reports were presented for the period December 2020 through December 2021. There were discussions regarding the interest rate environment with Chandler Asset Management (Chandler), the City’sInvestment Management firm, as there are high expectations that the Federal government will raise rates during the latter part of 2022. In addition, attention was given to the recent interest rate trends in both the U.S. Treasury market and in the Local Agency Investment Fund (LAIF). An update on the investment portfolio was also presented.
· Treasurer’s Investment Reports - The investment activity for the months of October, City of Orange Printed on 3/3/2022Page 1 of 2
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38 Item #: 3.4. 3/8/2022 File #: 22-0119
· Treasurer’s Investment Reports - The investment activity for the months of October, November, and December 2021, and the City’sposition in each category of investment that includes Treasuries, Agencies, and Pooled Investments was discussed. This report was also on the City Council agenda for the February 8 meeting as item 3.20. Chandler prepared a presentation to the Committee regarding their investment report through January 31, 2022. · Investment Policy Update - Chandler provided an analysis to the Investment Oversight and Advisory Committees regarding proposed changes to the Investment Policy, both committees approved all but one of said changes. Staff will be preparing a report with the proposed changes at the April City Council meeting.
· Economic Updates - Staff gave a brief economic update and Chandler provided their economic update from an investment purview.

7. ATTACHMENTS
· Monthly Treasurer’sReports for October, November, and December 2021 (February 8, 2022, City Council Staff Report)
· Investment Report Period Ending January 31, 2022
City of Orange Printed on 3/3/2022Page 2 of 2
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39 Agenda Item
City Council
Item #: 3.20. 2/8/2022 File #: 22-0049
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Richard A. Rohm, City Treasurer
Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Monthly Treasurer’s Reports for October, November, and December 2021.

2. SUMMARY
Presentation of three monthly Treasurer’sReports to the City Council, after the end of the quarter covered by the reports.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.

6. DISCUSSION AND BACKGROUND
The City’scurrent Statement of Investment Policy has been adopted by the City Council of the City of Orange as Resolution 11340 and is in accordance with the California Government Code Sections 53600 et seq. Per the Investment Policy, three monthly investment reports are to be submitted to the City Council within 45 days following the end of the quarter.

As required by the City’s present Investment Policy, the City Treasurer’s report delineates all investments made by the City Treasurer for the City, its special funds, and the Successor Agency funds, by investment type and by broker.

The monthly Compliance Report certifying compliance of all investments with both the Government Code and the City’s Investment Policy is included.

The Investment Portfolio Statement accurately reflects all investments held by the City and its agents as of the end of the month. This investment data is also presented in other summary and graphic form. A reconciliation between total cash and investments and total cash per the General Ledger is also included.

All of the three monthly Treasurer’s Reports have been reviewed by the Investment Advisory City of Orange Printed on 2/3/2022Page 1 of 3
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40 Item #: 3.20. 2/8/2022 File #: 22-0049
Committee (IAC).

Summary of changes in Treasurer’s cash and investments:

Operating Cash & Investments (1)
Balance @ 9/30/2021 $130,860,325
Monthly Activity:

Cash Received 66,912,481
Cash Disbursed (60,024,134)
Balance @ 12/30/2021 $137,748,672
(1)Includes operating cash and investments (valued at cost). Does not include deposits with administrator, imprest cash, fiscal agent cash and investments, and deferred compensation.

Significant Monthly Cash Transactions:

October November December
Cash Receipts:

Sales Tax Revenue 4,501,886$ 4,883,108 4,513,112
Property Taxes 75,240 5,385,158 13,833,275
Cash Disbursements:

OC Water District Purchased Water 1,629,352 1,412,416 1,311,775 RC Construction Fire HQ 954,421 967,277 972,956 PERS Employee Benefits 641,281 638,448 1,305,842 Southern Counties Oil Co. Agreement 1,114,608
South Coast Fire Equipment Fire Engine/Truck 905,065 1,689,951 Southern California Edison Electricity* 635,393 740,509 RJ Noble Pavement Maint. 484,548
Southwest Pump & Drill Well 28 658,119
Excess Cash Receipts 18,888,133
Excess Cash Disbursements 8,042,001 4,129,510
LAIF Balance Beginning 30,200,000 38,800,000 35,000,000 Ending 38,800,000 35,000,000 48,200,000
*Electricity costs represent catch-up of previous incorrect billings.

Credit rating on investments
The HSBC medium term note in the portfolio has been downgraded by Standard and Poor’s(S&P) from “A”to “A-“,which is one level below the minimum “A”rating permitted in the investment policy. It should be noted S&P is the only credit rating agency that issued the downgrade. The other two major national rating companies of Moody’s and Fitch have maintained the same bond credit rating.

If a security is downgraded one notch below the quality required in the investment policy, it is considered acceptable to retain such downgraded security in the portfolio. If a security is rated two grades below the required minimum rating, it will trigger an automatic sale of such downgraded City of Orange Printed on 2/3/2022Page 2 of 3
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41 Item #: 3.20. 2/8/2022 File #: 22-0049
grades below the required minimum rating, it will trigger an automatic sale of such downgraded security. Staff will continue to monitor the downgraded HSBC investment.

Investment Advisory Committee (IAC)
The next IAC meeting is scheduled for February 23, 2022 while the next quarterly Committee meeting is to be scheduled for May 2022.

7. ATTACHMENTS
· Investment Report for October 2021
· Investment Report for November 2021
· Investment Report for December 2021
City of Orange Printed on 2/3/2022Page 3 of 3
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42 CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com

INVESTMENT REPORT
Period Ending January 31, 2022
City of Orange
43 SECTION 1 Economic Update
SECTION 2 Account Profile
SECTION 3 Consolidated Information
SECTION 4 Portfolio Holdings
Table of Contents As of January 31, 2022
1 44
SECTION |
Section 1 |
Economic Update
2 45
Economic Update
▪
▪
▪
We believe economic growth is likely to moderate but remain above-trend in 2022,as US fiscal support begins to wane, and the Federal Reserve tightens monetary policy. We expect continued improvement in the labor market will help drive economic growth this year as the health situation improves. Consumer spending, the largest component of US GDP, should also remain solid, supported by healthy consumer balance sheets and a potential shift in spending toward more services rather than goods. Over the near-term, we expect financial market volatility to remain elevated with heightened geopolitical risk, supply chain bottlenecks and persistent inflation, and the Fed's pivot to less accommodative monetary policy. Inflation readings continue to run hot, but we believe inflation may be at or near a peak and pricing pressures are likely to abate as we move through the year.

The Federal Open Market Committee (FOMC) kept the fed funds target rate unchanged in January, in a range of 0.0%-0.25%, but indicated that they believe it will soon be appropriate to raise the target range. The Fed is also on track to complete their bond-buying program in early March. In addition, the FOMC is signaling that a passive reduction in the size of the Federal Reserve balance sheet is likely to commence later this year. The tone of Fed Chair Powell’s press conference was hawkish but he did not give any specific timelines. He mentioned that his outlook for inflation is incrementally worse than it was in December and that supply chain issues will linger for longer than previously expected. The Fed’s policy decisions will be led by incoming economic data and their evolving outlook. We are anticipating a rate hike announcement in March, but we do not believe that monetary policy is on a pre-set course and expect the Fed's policy adjustments will depend on developments in the economy.

In January, the 2-year Treasury yield increased nearly 45 basis points to 1.18%, the 5-year Treasury yield increased almost 35 basis points to 1.61%, and the 10-year Treasury yield increased about 27 basis points to 1.78%. On a month-over-month basis, the yield curve flattened. The spread between the 2-year and 10-year Treasury yield was roughly 60 basis points at January month-end, versus 78 basis points one month ago and 96 basis points one year ago. 3 46
Source: US Department of Labor Source: US Department of Labor Employment
The January employment report was remarkably strong. US nonfarm payrolls grew by 467,000in January, well above the consensus forecast of 125,000. Payrolls in the prior two months were revised significantly higher and on a trailing 3-month and 6-month basis, payrolls have increased an average of about 540,000 per month. The unemployment rate edged slightly higher to 4.0% in January from 3.9% in December as more workers entered the labor force. The labor participation rate increased to 62.2% in January from 61.9% in December but remains lower than the pre-pandemic level of 63.4%. The employment-population ratio increased to 59.7% in January from 59.5% in December, but also remains below the pre-pandemic level of 61.2%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 7.1% in January from 7.3% in December, and is very close to its pre- pandemic level (7.0% in February 2020). Average hourly earnings rose 0.7% month-over-month and were up 5.7% year-over-year in January versus 4.9% in December.
-22,000
-18,000
-14,000
-10,000
-6,000
-2,000
2,000
6,000
MOM Change In (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3 month average (000's)

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
4 47
Initial Claims for Unemployment
-
5,000
10,000
15,000
20,000
25,000
In thousands
Initial Jobless Claims
Continuing Claims
Initial Claims For Unemployment May 29, 2020 - February 11, 2022 In the most recent week, the number of initial jobless claims was 248,000, versus 225,000 in the prior week. The level of continuing unemployment claims (where the data is lagged by one week) was 1.593 million down from 1.619 million the prior week. Continuing jobless claims have declined significantly from the peak of nearly 25 million in May 2020, and are in the range of pre-pandemic levels (the 2019 average was 1.7 million).

Source: US Department of Labor
5 48
Source: US Department of Labor Source: US Department of Commerce Inflation
U.S. consumer prices climbed more than expected in January as inflation hit highs not seen since 1982.The Consumer Price Index (CPI) was up

7.5% year-over-year in January, versus up 7.0% year-over-year in December. Core CPI (CPI less food and energy) was up 6.0% in January, versus up 5.5% year-over-year in December. Pricing pressures were widespread in January; energy, rents and food prices remained elevated from the prior month. The Personal Consumption Expenditures (PCE) index was up 5.8% year-over-year in December, up from 5.7% in November. Core PCE was up 4.9% year-over-year in December, versus up 4.7% in November. Current inflation readings continue to run well above the Fed’s longer-run target of around 2.0%. While we believe year-over-year inflation may be at or near a peak, and pricing pressures are likely to abate as we move through the year, we expect inflationary pressures will remain elevated over the near-term.

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YOY( %) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY( %) Change
6 49
Retail sales rebounded in January with the most significant gain in ten months. On a year-over-year basis, retail sales were up 13.0% in January versus up 16.9% in December. On a month-over-month basis, retail sales beat expectations, rising 3.8% in January versus a 2.5% decline in December. Excluding vehicles and gas, retail sales were up 3.8% month-over-month. Gains were broad-based with robust demand for goods, especially motor vehicles, home furnishings, and nonstore merchandise. Looking further ahead, we believe high levels of consumer savings along with improvement in the health situation and continued improvement in the labor market should provide a healthy tailwind for consumer spending. The Consumer Confidence index eased to 110.5 in February from 111.1 in January.

Source: US Department of Commerce Source: The Conference Board -30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
80 90
100
110
120
130
140
Index Level
Consumer Confidence
Consumer
7 50
Source: The Conference Board Source: Federal Reserve Bank of Chicago Economic Activity
The Conference Board’s Leading Economic Index (LEI) decreased 0.3% month-over-month in January, following a 0.7% downwardly revised increase in December. On a year-over-year basis, the LEI was up 7.3% in January versus up 8.3% in December. Omicron, rising prices, supply chain snags, and scarcity of labor all weighed on the index in January. The Conference Board expects GDP growth to moderate in the first quarter to 2.0% but they are forecasting 3.5% growth for the full year. Meanwhile, the Chicago Fed National Activity Index (CFNAI) declined to -

0.15 in December from 0.44 in November, suggesting that economic growth declined in December. We believe the rapid spread of the Omicron variant in December contributed to the overall decline. On a 3-month moving average basis, the CFNAI increased to 0.33 in December versus 0.40 in November.
-8.00
-6.00
-4.00
-2.00

0.00 2.00

4.00 6.00
Chicago Fed National Activity Index (CFNAI)
3 Month Average
-8.0%
-6.0%
-4.0%
-2.0%

0.0%

2.0%

4.0%
Leading Economic Indicators (LEI)
MOM ( %) Change
8 51
Source: US Department of Commerce Source: S&P
Housing
0 200
400
600
800
1000
1200
1400
1600
1800
2000
MOM Change (In Thousands of Units)
Housing Starts
Multi Family Housing Starts
Single Family Housing Starts

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%

21.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
YOY( %) Change
Total housing starts unexpectedly fell 4.1 percent to an annual rate of 1,638,000in January. Single-family starts declined 5.6% while multi- family starts fell 2.1%, month-over-month. On a year-over-year basis, total housing starts were up 0.8% in January. According to the Case- Shiller 20-City home price index, home prices were up 18.56% year-over-year in December versus up 18.35% year-over-year in November, suggesting tight supply may be continuing to support prices. 9 52
Source: Institute for Supply Management Source: Federal Reserve Manufacturing
The Institute for Supply Management (ISM) manufacturing index declined to 57.6 in January from 58.8 in December. We believe the surge in Omicron cases in January likely held back manufacturing activity in in the month. Nevertheless, readings above 50.0 are indicative of expansion in the manufacturing sector. The Industrial Production index was up 4.1% in January versus up 3.8% in December. On a month-over-month basis, the Industrial Production index rose 1.4% in January, following a 0.1% decline in December. Capacity utilization rose to 77.6% in January, up from 76.6%in December. Although capacity utilization remains below its longer-run average of 79.6%, it is running above the pre-pandemic level of 76.3%. Manufacturing production likely remains constrained by supply chain bottlenecks; the increase in January was largely concentrated in utilities due to colder weather.
40 42
44 46
48 50
52 54
56 58
60 62
64 66
Institute of Supply Management Purchasing Manager
Index

EXPANDING

CONTRACTING
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%
Industrial Production
YOY( %) Change
10 53
Source: US Department of Commerce Source: US Department of Commerce 3/21 6/21 9/21 12/21

7.4% 7.9% 1.4% 2.3%
-0.4% -0.7% 2.1% 5.2%
-1.6% -0.2% -1.3% 0.0%

0.8% -0.4% -0.4% -0.3%

0.0% 0.0% 0.5% -0.2%

6.3% 6.7% 2.3% 6.9%
Gross Private Domestic Investment
Personal Consumption Expenditures
Components of GDP
Federal Government Expenditures
State and Local (Consumption and Gross
Investment)
Net Exports and Imports
Total
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Gross Domestic Product (GDP)
According to the advance estimate, fourth quarter GDP grew at an annualized rate of 6.9%, versus the consensus forecast of 5.5%. Economic growth reaccelerated in the fourth quarter after slowing to a pace of 2.3% growth in the third quarter. While third quarter growth was held back by the outbreak of the Delta variant in the US, we anticipate the recent surge of omicron cases in the US will hamper current quarter economic growth. The consensus estimate calls for 1.7% GDP growth in the current quarter. 11 54
Federal Reserve
Source: Federal Reserve Source: Bloomberg
In 2020, the Fed took a wide range of aggressive actions to help stabilize and provide liquidity to the financial markets. The Fed lowered the fed funds target rate to a range of 0.0%-0.25% and started purchasing Treasury and agency mortgage-backed securities (MBS) to support smooth market functioning. Policymakers reinstated the Commercial Paper Funding Facility and Money Market Mutual Fund Liquidity Facility, and established the Primary Market Corporate Credit Facility, Secondary Market Corporate Credit Facility, Term Asset-Backed Securities Loan Facility, Paycheck Protection Program Liquidity Facility, Main Street Lending Facility, and Municipal Liquidity Facility. The Fed also provided short-term funding through large-scale repo operations and lowered the reserve requirement for depository institutions. Many of the Fed's lending facilities expired at the end of 2020.In June 2021, the Fed announced plans to unwind its corporate credit facility. The Fed started to taper their Treasury and agency MBS purchases in November 2021, and the Fed's bond-buying program is now on track to end by early March 2022. The Fed has also signaled that they are likely to start hiking the fed funds target rate this year.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%
Effective Federal Funds Rate
Yield (%)
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Federal Reserve Balance Sheet Assets
In $ millions
12 55
Source: Bloomberg Source: Bloomberg

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%
US Treasury Yield Curve
Jan-22
Oct-21
Jan-21
Yield (%)
Bond Yields
At the end of January, the 2-year Treasury yield was about 107 basis points higher, and the 10-Year Treasury yield was about 71 basis points higher, year-over-year. The spread between the 2-year Treasury yield and 10-year Treasury yield was 60 basis points at January month-end compared to the average historical spread (since 2003) of about 130 basis points. 13 56
Section 2|SECTION |
Section 2 |
Account Profile
14 57
Objectives
Chandler Asset Management Performance Objective
The performance objective for the Authority is to achieve an annual rate of return on its portfolio that exceeds the return on a market index selected by Authority management.

Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds.

As of January 31, 2022
15 58
Category Standard Comment
U.S. Treasuries No limitations; 5 years max maturity; Faith and credit of the U.S. are pledged for the payment of principal and interest Complies Federal Agencies
75% max; 35% max per Agency and excluding Government National Mortgage Association (i.e. GNMAs); 5 years max maturity; Obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, FHLB, TVA, FNMA, or other instruments of, or issued by federal agencies or U.S. government-sponsored enterprises; Any issue purchased must be fully guaranteed as to principal and interest by the full faith and credit of the U.S. or the issuing by federal agency Complies
Municipal Securities
"A" rated or better by a NRSRO; 20% max; 5% max per issuer (book value); 5 years max maturity; Include obligations issued by the State of California and any local agency within the State of California, and registered bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state, or local agency or by a department, board, agency, or authority of a state or local agency Complies
Corporate Medium Term Notes "A" rated or better by a NRSRO; 20% max; 5% max per issuer (book value); 5 years max maturity; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by the U.S. or any state and operating within the U.S Complies Certificates of Deposit 30% max; Certificates of Deposit approved by California AB 2011 Complies Commercial Paper Prime quality with highest rating by a NRSRO; Issued by a domestic corporation with assets > $500 million and having an "A" rating or better by a NRSRO, on its debt other than commercial paper; 20% max; 5% max per issuer (book value); 270 days max maturity Complies Money Market Mutual Funds
$15 million max or 20% max, whichever is less; 90 days weighted average maturity; Shares of beneficial interest issued by diversified management companies that are Money Market Mutual Funds, registered with the SEC under Investment Company Act of 1940 investing in securities and obligations authorized by CGC Sections 53601(b) and (e) only (i.e. U.S. Government issues only); Funds must either: (i) carry the highest rating by two NRSROs; or (ii) retained an investment adviser registered with SEC with > 5 years experience managing money market mutual funds with AUM >$500 million
Complies
Local Agency Investment Fund
(LAIF)
$75 million max per account; State of California LAIF is permitted, with the knowledge that the fund may invest in some vehicles allowed by statute but not otherwise authorized by the City Council in the policy Complies Local Government Investment
Pool (LGIP)
Investment in new Government sponsored pools will be subject to due diligence; A thorough investigation of the pool is required prior to investing, and on a continual basis Complies
Credit Risk
If securities owned by the City are downgraded by either Moody's, S&P, or Fitch, it shall be the City's policy to review immediately the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. If a security is downgraded one notch below the quality required in the investment policy, it will be considered acceptable to retain such downgraded security in the portfolio and its presence in the portfolio will be reported to the City Council and be monitored on a continuous basis. If a security is rated two grades below the required minimum rating, it will trigger an automatic sale of such downgraded security Complies
Portfolio Maturities
Portfolio maturities shall be managed to avoid undue concentration in any specific maturity sector with at least 15% of the portfolio must be invested from 1 to 365 in this maturity sector; No more than 50% of portfolio be invested from 366 days to 730 days; No more than 35% of the portfolio be invested from 731 days to 1095 days; No more than 30% of the portfolio be invested from 1096 days to 1460 days; No more than 30% of the portfolio be invested from 1461 days to 1825 days Complies
Maximum Maturity 5 years max maturity Complies
City of Orange Consolidated
This portfolio is a consolidation of assets managed by Chandler Asset Management and assets managed internally by Client. Chandler relies on Client to provide accurate information for reporting assets and producing this compliance statement.

Compliance As of January 31, 2022
16 59
Portfolio Characteristics
City of Orange
01/31/22 12/31/21
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.61 3.01 3.10
Average Modified Duration 2.54 2.94 2.95
Average Purchase Yield n/a 0.71% 0.71%
Average Market Yield 1.25% 1.43% 1.03%
Average Quality** AAA AA/Aa1 AA/Aa1
Total Market Value 78,816,637 79,672,017
*ICE BofA 1-5 Yr US Treasury & Agency Index
**Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.

As of January 31, 2022
17 60
City of Orange
Sector Distribution
Agency

74.5%
Corporate

21.6%
Money Market
Fund

0.2%
US Treasury

3.7%
January 31, 2022 December 31, 2021
Agency

74.5%
Corporate

21.7%
Money Market
Fund

0.2%
US Treasury

3.7%
As of January 31, 2022
18 61
Issue Name Investment Type % Portfolio
Federal National Mortgage Association Agency 27.96%
Federal Home Loan Bank Agency 23.59%
Federal Home Loan Mortgage Corp Agency 22.96%
HSBC Holdings PLC Corporate 7.97%
Toyota Motor Corp Corporate 6.12%
Coca Cola Co. Corporate 3.86%
Government of United States US Treasury 3.69%
Apple Inc Corporate 3.66%
First American Govt Oblig Fund Money Market Fund 0.20%
TOTAL 100.00%
Issuers
City of Orange – Account #10888
As of January 31, 2022
19 62
AAA AA A <A NR
01/31/22 0.2% 55.8% 17.9% 0.0% 26.0%
12/31/21 0.1% 55.9% 17.9% 0.0% 26.0%
Source: S&P Ratings
January 31, 2022 vs. December 31, 2021

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
AAA AA A <A NR
01/31/22 12/31/21
Quality Distribution
City of Orange
As of January 31, 2022
20 63

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ City of Orange ICE BofA 1-5 Yr US Treasury & Agency Index Portfolio Compared to the Benchmark
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ Portfolio 0.2% 0.0% 0.0% 6.2% 48.6% 35.1% 9.9% 0.0%
Benchmark* 0.0% 0.0% 2.0% 35.7% 27.8% 19.0% 15.5% 0.0%
*ICE BofA 1-5 Yr US Treasury & Agency Index
Duration Distribution
City of Orange
As of January 31, 2022
21 64

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%

60.0%
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ January 31, 2022 December 31, 2021
January 31, 2022 vs. December 31, 2021
0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+ 01/31/22 0.2% 0.0% 0.0% 6.2% 48.6% 35.1% 9.9% 0.0%
12/31/21 0.1% 0.0% 0.0% 6.2% 53.5% 32.7% 7.4% 0.0%
City of Orange
Duration Distribution As of January 31, 2022
22 65
-1.10%
-1.05%
-1.00%
-0.95%
-0.90%
-0.85%
-0.80%
Since Inception
City of Orange ICE BofA 1-5 Yr US Treasury & Agency Index Total Rate of Return Since Inception December 31, 2021
TOTAL RATE OF RETURN Since Inception
City of Orange -1.07%
ICE BofA 1-5 Yr US Treasury & Agency Index -0.90%
Investment Performance
City of Orange
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

As of January 31, 2022
23 66
Portfolio Characteristics
City of Orange LAIF Balances
01/31/22
Portfolio
12/31/21
Portfolio
Average Maturity (yrs) 0.00 0.00
Modified Duration 0.00 0.00
Average Purchase Yield 0.25% 0.22%
Average Market Yield 0.25% 0.22%
Average Quality* NR/NR NR/NR
Total Market Value 48,209,482 48,200,291
*Portfolio is S&P and Moody’s, respectively.

As of January 31, 2022
24 67
Portfolio Characteristics
City of Orange Bank Balances
01/31/22
Portfolio
12/31/21
Portfolio
Average Maturity (yrs) 0.00 0.00
Modified Duration 0.00 0.00
Average Purchase Yield 0.00% 0.00%
Average Market Yield 0.00% 0.00%
Average Quality* NR/NR NR/NR
Total Market Value 9,212,943 9,212,943
*Portfolio is S&P and Moody’s, respectively.

As of January 31, 2022
25 68
SECTION |
Section 3 |
Consolidated Information
26 69
Portfolio Characteristics
City of Orange Consolidated
01/31/22 12/31/21
Portfolio Portfolio
Average Maturity (yrs) 1.74 1.80
Modified Duration 1.70 1.72
Average Purchase Yield 0.50% 0.49%
Average Market Yield 0.91% 0.68%
Average Quality* AA/Aa1 AA/Aa1
Total Market Value 136,239,061 137,085,251
* Portfolio is S&P and Moody’s respectively.

As of January 31, 2022
27 70
City of Orange Consolidated
Sector Distribution
Agency

43.1%
Cash

6.8%
Corporate

12.5%
LAIF

35.4%
Money Market
Fund

0.1%
US Treasury

2.1%
January 31, 2022 December 31, 2021
Agency

43.3%
Cash

6.7%
Corporate

12.6%
LAIF

35.2%
Money Market
Fund

0.1%
US Treasury

2.2%
As of January 31, 2022
28 71
SECTION |
Section 4 |
Portfolio Holdings
29 72
Holdings Report
City of Orange - Account #10888
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Agency
3135GABN0 FNMA Callable Note Qtlry 12/29/2021

0.280% Due 12/29/2023
5,000,000.00 12/29/2020

0.28%
5,000,000.00
5,000,000.00

98.29 1.19%
4,914,695.00
1,244.44

6.24%
(85,305.00)
Aaa / AA+
AAA

1.91 1.90
3130ALLM4 FHLB Callable Note Qtrly 6/28/2021

0.350% Due 03/28/2024
5,000,000.00 03/29/2021

0.37%
4,997,000.00
4,997,846.58

98.58 1.02%
4,929,140.00
5,979.17

6.26%
(68,706.58)
Aaa / AA+
NR

2.16 2.14
3134GWXC5 FHLMC Callable Note Qtrly 9/29/2021

0.350% Due 03/29/2024
5,000,000.00 12/10/2020

0.35%
5,000,000.00
5,000,000.00

98.11 1.24%
4,905,405.00
5,930.56

6.23%
(94,595.00)
Aaa / NR
AAA

2.16 2.14
3135GA4S7 FNMA Callable Note Qtrly 11/17/2022

0.375% Due 05/17/2024
5,000,000.00 11/20/2020

0.38%
5,000,000.00
5,000,000.00

98.36 1.10%
4,918,175.00
3,854.17

6.24%
(81,825.00)
Aaa / AA+
AAA

2.29 2.27
3135GA5Y3 FNMA Callable Note Qtrly 12/14/2021

0.375% Due 06/14/2024
5,000,000.00 12/14/2020

0.38%
5,000,000.00
5,000,000.00

97.91 1.27%
4,895,595.00
2,447.92

6.21%
(104,405.00)
Aaa / AA+
AAA

2.37 2.35
3134GWVE3 FHLMC Callable Note Qtrly 3/25/2021

0.400% Due 09/25/2024
4,575,000.00 11/19/2020

0.41%
4,573,627.50
4,574,056.04

97.36 1.42%
4,454,087.33
6,405.00

5.66%
(119,968.71)
Aaa / NR
AAA

2.65 2.62
3135GA4W8 FNMA Callable Note Qrtly 11/18/2022

0.500% Due 02/18/2025
5,000,000.00 11/20/2020

0.50%
5,000,000.00
5,000,000.00

97.04 1.50%
4,851,865.00
11,319.44

6.17%
(148,135.00)
Aaa / AA+
AAA

3.05 3.00
3130ANA42 FHLB Callable Note Qtrly 1/28/2022

0.650% Due 04/28/2025
4,000,000.00 07/28/2021

0.65%
4,000,000.00
4,000,000.00

97.38 1.48%
3,895,124.00
216.67

4.94%
(104,876.00)
Aaa / AA+
NR

3.24 3.19
3130AMBG6 FHLB Callable Note Qtrly 7/29/2021

0.750% Due 04/29/2025
5,000,000.00 05/04/2021

0.75%
5,000,000.00
5,000,000.00

97.56 1.52%
4,877,885.00
9,583.33

6.20%
(122,115.00)
Aaa / AA+
NR

3.24 3.06
3134GXFY5 FNMA Callable Note Qtrly 6/17/2021

0.500% Due 06/17/2025
2,500,000.00 12/17/2020

0.50%
2,500,000.00
2,500,000.00

97.36 1.30%
2,433,965.00
1,527.78

3.09%
(66,035.00)
Aaa / NR
AAA

3.38 3.33
3134GW3Z7 FHLMC Callable Note Qtrly 10/28/2021

0.600% Due 10/28/2025
9,000,000.00 10/28/2020

0.60%
9,000,000.00
9,000,000.00

96.75 1.50%
8,707,077.00
13,950.00

11.06%
(292,923.00)
Aaa / NR
AAA

3.74 3.67
3130ANDF4 FHLB Callable Note Annual 7/29/2022

0.900% Due 07/29/2026
5,000,000.00 07/29/2021

0.70%
5,010,000.00
5,004,876.71

97.44 1.49%
4,872,085.00
250.00

6.18%
(132,791.71)
Aaa / AA+
NR

4.49 4.38
TOTAL Agency 60,075,000.00 0.49%
60,080,627.50
60,076,779.33 1.34%
58,655,098.33
62,708.48

74.50%
(1,421,681.00)
Aaa / AA+
Aaa

2.92 2.86
Corporate
40434CAD7 HSBC USA Inc Note

3.500% Due 06/23/2024
6,000,000.00 12/10/2019

2.14%
6,349,800.00
6,184,294.15
104.27

1.67%
6,256,026.00
22,166.67

7.97%
71,731.85
A1 / A-
A+

2.39 2.29
191216CL2 Coca Cola Company Callable Note Cont 8/6/2024

1.750% Due 09/06/2024
3,000,000.00 09/20/2019

2.00%
2,964,750.00
2,981,568.12
100.75

1.44%
3,022,602.00
21,145.83

3.86%
41,033.88
A1 / A+
A

2.60 2.44
89236THP3 Toyota Motor Credit Corp Note

0.800% Due 10/16/2025
5,000,000.00 11/19/2020

0.70%
5,025,000.00
5,018,875.56

96.27 1.85%
4,813,280.00
11,666.67

6.12%
(205,595.56)
A1 / A+
A+

3.71 3.62
As of January 31, 2022
30 73
Holdings Report
City of Orange - Account #10888
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
037833EB2 Apple Inc Callable Note Cont 1/8/2026

0.700% Due 02/08/2026
3,000,000.00 02/08/2021

0.70%
2,999,730.00
2,999,782.94

95.91 1.76%
2,877,360.00
10,091.67

3.66%
(122,422.94)
Aaa / AA+
NR

4.02 3.92
TOTAL Corporate 17,000,000.00 1.44%
17,339,280.00
17,184,520.77 1.70%
16,969,268.00
65,070.84

21.61%
(215,252.77)
A1 / A+
A+

3.08 2.97
Money Market Fund
31846V203 First American Govt Obligation Fund Class Y 153,750.56 Various

0.01%
153,750.56
153,750.56

1.00 0.01%
153,750.56

0.00 0.20%

0.00 Aaa / AAA
AAA

0.00 0.00
TOTAL Money Market Fund 153,750.56 0.01%
153,750.56
153,750.56 0.01%
153,750.56

0.00 0.20%

0.00 Aaa / AAA
Aaa

0.00 0.00
US Treasury
91282CCZ2 US Treasury Note

0.875% Due 09/30/2026
3,000,000.00 09/30/2021

1.01%
2,980,546.88
2,981,867.90

96.73 1.61%
2,901,798.00
8,942.31

3.69%
(80,069.90)
Aaa / AA+
AAA

4.67 4.53
TOTAL US Treasury 3,000,000.00 1.01%
2,980,546.88
2,981,867.90 1.61%
2,901,798.00
8,942.31

3.69%
(80,069.90)
Aaa / AA+
Aaa

4.67 4.53
TOTAL PORTFOLIO 80,228,750.56 0.71%
80,554,204.94
80,396,918.56 1.43%
78,679,914.89
136,721.63
100.00%
(1,717,003.67)
Aa1 / AA
Aaa

3.01 2.94
TOTAL MARKET VALUE PLUS ACCRUALS 78,816,636.52
As of January 31, 2022
31 74
Holdings Report
City of Orange LAIF Balances - Account #10895
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
LAIF
90LAIF$00 Local Agency Investment Fund State Pool 48,200,000.00 12/31/2021

0.25%
48,200,000.00
48,200,000.00

1.00 0.25%
48,200,000.00
9,481.53
100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL LAIF 48,200,000.00 0.25%
48,200,000.00
48,200,000.00 0.25%
48,200,000.00
9,481.53
100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL PORTFOLIO 48,200,000.00 0.25%
48,200,000.00
48,200,000.00 0.25%
48,200,000.00
9,481.53
100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 48,209,481.53
As of January 31, 2022
32 75
Holdings Report
City of Orange Bank Balances - Account #10896
CUSIP Security Description Par Value/Units Purchase Date Book Yield
Cost Value
Book Value
Mkt Price
Mkt YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody/S&P
Fitch
Maturity
Duration
Cash
999WEL$12 Wells Fargo General Account 4,897.00 12/31/2021

0.00%
4,897.00
4,897.00

1.00 0.00%
4,897.00

0.00 0.05%

0.00 NR / NR
NR

0.00 0.00
999WEL$14 Wells Fargo Property Management 150,364.25 12/31/2021

0.00%
150,364.25
150,364.25

1.00 0.00%
150,364.25

0.00 1.63%

0.00 NR / NR
NR

0.00 0.00
999WEL$15 Wells Fargo Property Management 9,057,681.56 12/31/2021

0.00%
9,057,681.56
9,057,681.56

1.00 0.00%
9,057,681.56

0.00 98.31%

0.00 NR / NR
NR

0.00 0.00
TOTAL Cash 9,212,942.81 0.00%
9,212,942.81
9,212,942.81 0.00%
9,212,942.81

0.00 100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL PORTFOLIO 9,212,942.81 0.00%
9,212,942.81
9,212,942.81 0.00%
9,212,942.81

0.00 100.00%

0.00 NR / NR
NR

0.00 0.00
TOTAL MARKET VALUE PLUS ACCRUALS 9,212,942.81
As of January 31, 2022
33 76
Important Disclosures
2022 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ice Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.

As of January 31, 2022
34 77
Benchmark Disclosures
ICE BofA 1-5 Yr US Treasury & Agency Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.

As of January 31, 2022
35 78
Agenda Item
City Council
Item #: 3.5. 3/8/2022 File #: 22-0042
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Bonnie Hagan, Assistant City Manager/Community Services Director

1. SUBJECT
Agreement with We the Creative for production of the City’s quarterly publication, Our Orange.

2. SUMMARY
A three-year agreement with Jovenville, LLC, dba We the Creative, for the design, printing and mail preparation of a total of twelve Winter, Spring, Summer, and Fall issues of the Our Orange city quarterly publication. The not-to-exceed amount for this agreement is $311,203.70.

3. RECOMMENDED ACTION
Approve agreement with We the Creative in the amount not-to-exceed $311,203.70 for production of twelve issues of Our Orange; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total three-year expenditure for this agreement is $311,203.70 and will be funded through General Fund (100). The cost of this agreement is partially off-set by a $40,000 annual donation from CR&R, the City’s waste hauling provider.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community b: Deliver high quality and safe recreational, social, environmental, educational and cultural services.

6. DISCUSSION AND BACKGROUND
The quarterly Our Orange publication is delivered to every household in Orange and is the primary source of printed communication between the City and the community. It contains information from every department, covering topics such as City news, safety tips, environmental news, City-wide projects, special events, and water conservation. Additionally, it serves as the quarterly catalog of revenue generating programs for the Community Services Department, and the main source of information to our residents of Library services and programs. The size of Our Orange varies from 36 to 44 pages, depending on the season, class schedules and content.

The current agreement with Harlan West/HWDS expires after the completion of the Summer 2022 publication. A request for proposal (No. 21-22.20) was advertised on November 11, 2021 and five proposals were received. The proposal abstract summary is attached for reference.

We the Creative (WTC) received the highest rating based upon submittal of an inclusive proposal, City of Orange Printed on 3/3/2022Page 1 of 2
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79 Item #: 3.5. 3/8/2022 File #: 22-0042
We the Creative (WTC) received the highest rating based upon submittal of an inclusive proposal, related previous experience with similar municipal contracts, presentation of materials, and qualifications. Staff checked WTC’s references with the cities of Long Beach and Santa Monica.

Both cities praised WTC’sproject team for their creative “outof the box”thinking, and the record of success they have achieved working with WTC. WTC will be a new vendor for Orange and the City has the ability to explore new options for the presentation of Our Orange, including the “lookand feel” of the publication.

The proposed agreement covers the design, printing, and mail preparation for twelve issues, starting with the Fall 2022 publication. The base cost is $282,912.45, which is inclusive of industry expected increases for paper. This base rate reflects an average decrease of $1,641.66, or 6.51%, in cost-per- issue below the average cost-per-issue for the 20 issues included in the current agreement and subsequent amendments. A 10% contingency of $28,291.25 is also included for unforeseen design and/or production related expenses, and unanticipated additional printing needs. The three-year agreement not-to-exceed amount is $311,203.70. During the term of the new agreement, should the actual cost of paper product exceed the expected industry standard increase, the City Manager will be authorized to execute an amendment to increase the compensation to adjust for the documented rise in cost. WTC will be responsible for providing documentation that verifies the actual increase in paper costs.

A portion of the cost of the agreement is offset by a $40,000 per calendar year contribution by the City’s waste hauler CR&R. This contribution provides space in each issue for valuable waste management and recycling information.

This agreement does not include postage, which is paid by the City directly to the US Postal Service.

Postage for the Our Orange is currently approximately $30,500 per year, and is prepaid each January/February.

This agreement will commence on April 1, 2022 to allow enough onboarding time for the vendor to meet the May 2022 deadline for the start of production of the Fall 2022 issue. The initial term of the agreement is approximately three years, covering twelve issues, terminating on May 31, 2025. The agreement allows the City Manager to execute an additional three year extension term (twelve additional issues) if the City is satisfied with the work product.

7. ATTACHMENTS
· Proposal Abstract Summary - Our Orange
· Professional Services Agreement with We the Creative
City of Orange Printed on 3/3/2022Page 2 of 2
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80 Agenda Item
City Council
Item #: 3.5. 3/8/2022 File #: 22-0042
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Bonnie Hagan, Assistant City Manager/Community Services Director

1. SUBJECT
Agreement with We the Creative for production of the City’s quarterly publication, Our Orange.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community b: Deliver high quality and safe recreational, social, environmental, educational and cultural services.

We the Creative (WTC) received the highest rating based upon submittal of an inclusive proposal, City of Orange Printed on 3/3/2022Page 1 of 2
powered by Legistar™
81 Item #: 3.5. 3/8/2022 File #: 22-0042
We the Creative (WTC) received the highest rating based upon submittal of an inclusive proposal, related previous experience with similar municipal contracts, presentation of materials, and qualifications. Staff checked WTC’s references with the cities of Long Beach and Santa Monica.

This agreement does not include postage, which is paid by the City directly to the US Postal Service.

Postage for the Our Orange is currently approximately $30,500 per year, and is prepaid each January/February.

7. ATTACHMENTS
· Proposal Abstract Summary - Our Orange
· Professional Services Agreement with We the Creative
City of Orange Printed on 3/3/2022Page 2 of 2
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82 PROPOSAL ABSTRACT SUMMARY
RFP 21-22.20
Project: Graphic Design and Printing for the Quarterly Our Orange Brochure Date Advertised: 11/11/2021
Bid Due Date: 12/16/2021
Cost Estimate: $330,000
ca
Company/
Contractor
City (Location of Company)
We the Creative
Harlan
West/HWDS
The PM
Group
Advantage
Color
Graphics
Traffik
Proposer's experience,
qualifications, and ability to
provide necessary equipment
and personnel in order to satisfy
the work described within this
RFP. (25%)

24.3 22.7 22.7 24.0 20.0
Qualifications of key personnel
& sub-contractors. (25%) 24.3 25.0 25.7 23.3 21.7
Demonstrated record of
success (references and
samples) by the proposer on
work previously performed for
the City and/or other
municipalities. (25%)

23.3 24.3 24.0 21.0 16.3
Proposer's responsiveness to
the overall request for
information within this RFP.
(25%)

24.0 22.3 21.3 18.3 20.0
Total Point Scores
(Out of 100 Points) 96 94.3 93.0 86.7 78.0
Recommended
Award
83 PROFESSIONAL SERVICES AGREEMENT
[Graphic Design and Printing Services]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s _____ day of ____________, 20 22 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and JOVENVILLE, LLC, dba, WE THE CREATIVE, a California limited liability company (“Contractor”), who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. As a material inducem ent to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are th e subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the business of providing such services and is experienced in performing the work.

Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provided such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.

Paul Sitkoff, Public Affairs and Information Manager (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.

2. Compensation and Fees.

a. Contractor's total base compensation for all services performed and materials provided under this Agreement, shall not exceed TWO HUNDRED EIGHTY-TWO THOUSAND NINE HUNDRED TWELVE DOLLARS and 45/100 ($282,912.45) without the prior written authorization of City.

b. The above compensation shall include all costs, including, but not limited to, all clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto rental, subsistence and all related expenses.

The Contractor agrees to perform only that work or those services that are specifically requested by the City’s Project Manager. Any and all additional wor k and services performed under this Agreement shall be completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate or proposal submitted to and approved by City’s Project Manager prior to the commencement of such services.

d. The total amount of compensation under this Agreement, including contingencies, shall not exceed THREE HUNDRED ELEVEN THOUSAND TWO HUNDRED THREE DOLLARS and 70/100 ($311,203.70).

e. Beginning with Contract Year 2, p rior to the commencement of each Contract Year as set forth in Exhibit “B,” which is attached hereto and incorporated herein by reference, the City Manager is hereby authorized on behalf of City to approve an increase in the compensation payable to Contractor based on a documented increase in the cost of paper used in the production of the quarterly publications for the upcoming Contract Year. Said documentation shall be sufficient to demonstrate the prior Contract Year cost of paper and the upcoming Contract Year cost of paper. The increased compensation shall not increase the total amount of base compensation under this Agreement. If such increase is approved by the City Manager, it shall be memorialized by Amendment to this Agreement.

2.1 Term and Extension

a. The Initial Term of this Agreement is approximately three (3) years (the “Initial Term”), commencing on the Effective Date and terminating on May 31 , 2025 (the “Expiration Date”); provided, however, that City has the right to extend the term of this Agreement for the following extension and upon the following terms:

 The “Extension Term” shall commence June 1, 2025, and terminate on May 31, 2028, at a compensation amount to be determined by the City Manager as provided in 2.1.d, below.

b. The City Manager is hereby authorized on behalf of City to give written notice to Contractor of City’s intention to exercise the Extension (if at all) no later than thirty (30) days prior to the Expiration Date of the Initial Term; provided, however, that City’s notice of its intention to extend the term of this Agreement for each Extension shall be expressly conditioned upon and subject to the approval by the City Council, in its sole and absolute discretion, of an amount sufficient to pay the compensation set forth herein for each Extension as part of its annual budget approval process prior to the beginning of each Extension. While the parties acknowledge that City is required to give its notice of intention to extend the term of this Agreement not later than thirty (30) days prior to the Expiration Date of then -current term, it is possible that the City 85 3
Council’s approval of its annual budget and appropriation of funds for the Extension in question may occur thereafte r. Accordingly, if the City Council fails to approve and appropriate funds sufficient to pay the amount of compensation set forth herein for an Extension, this Agreement shall terminate and be of no further force and effect as of the expiration of the the n-current term.

Notwithstanding anything in this provision to the contrary, in the event City gives Contractor written notice exercising an Extension and City receives notice that appropriation of funds for the Extension in question are not available afte r Contractor has performed services under the Extension, City agrees that Contractor will be equitably compensated for all services performed under any portion of an Extension through the date of termination of the Agreement. Except as specifically set forth herein, the terms and conditions of the Extension Term will be the same as the Initial Term.

c. The City Manager is hereby authorized to approve and execute an amendment to this Agreement reflecting the exercise of the Extension Term and the amount of base compensation (including the amount of funds to be made available for additional work or services) payable to Contractor for the Extension Term.

d. The base compensation payable to Contractor for the first year of the Extension Ter m shall be increased to the greater of (i) two percent (2%) of the amount of compensation payable to Contractor for the Spring, Summer, Fall and Winter issues in the year prior to the Expiration Date, or (ii) the published percentage increase, if any, in t he U.S.

Department of Labor, Bureau of Labor Statistics Consumer Price Index - All Urban Consumers (Los Angeles-Riverside-Orange County, California) (the “CPI”) for the year prior to the Extension date. Compensation for the second and third years of the Extension Term shall be calculated each year and memorialized in writing by the City Manager at the commencement of each year .

Compensation payable to Contractor during the Extension Term shall be set forth in an addendum to Exhibit “B.”

3. Payment.

a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.

b. All such invoices shall state the basis for the amount invoic ed, including services completed, in compliance with Exhibit “B.”

c. City will pay Contractor the amount invoiced within thirty (30) days after the approval of the invoice.

d. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.

4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price there for have been previously authorized in writing and approved by City as an 86 4
amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

5. Licenses. Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement.

6. Independent Contractor . At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any n ature whatsoever.

Contractor acknowledges that it and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

7. Contractor Not Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.

It is understood by the parties that clerical and other nonprof essional work may be performed by persons other than those designated.

9. Assignment or Subcontracting. No assignment or subcontracting by Contractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.

11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work.

12. Liquidated Damages. Contractor shall pay City, or have withheld from monies due it, as liquidated damages, the sum of One Hundred Dollars ($100.00) per day for each and every calendar day delay in finishing the work within the time specified (Exhibit A), including any written extensions which may be granted, in writing, in accordance with this Agreement.

13. Delays and Extensions of Time. Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor’s control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.

14. Products of Contractor. The documents, studies, evaluations, asses sments, reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products produced or provided by Contractor for this Agreement shall become the property of City upon receipt. Contractor shall deliver all such products to City prior to payment for same. City may use, reuse or otherwise utilize such products without restriction.

15. Equal Employment Opportunity . During the performance of this Agreement, Contractor agrees as follows:

Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

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c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any work covered by this Agr eement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a consultant to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code.

17. Indemnity.

a. To the fullest extent permitted by law, Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:

(1) Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or its subcontractor’s employees arising out of Contractor’s work under this Agreement, including any and all claims under any law pertaining to Contractor or its employee s’ status as an independent contractor and any and all claims under Labor Code section 1720 related to the payment of prevailing wages for public works projects; and

(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in an y way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph.

b. Reserved.

c. Except for the Indemnitees, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.

d. The indemniti es set forth in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors.

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18. Insurance.

a. Contractor shall carry workers’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker s’ compensation benefits under any City program.

b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) One Million Dollars ( $1,000,000) per occurrence ; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.

c. Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($1,000,000) ; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis.

d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Contractor under this Agreement.

e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under th is Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth below shall be maintained for the duration of the Agreement.

f. Reserved.

g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy.

Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.

h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days’ prior written notice to City.
90 8

i. Except for professional liability insurance coverage that may be required by this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of professional liability insurance coverage, such coverage shall be issued by companies either licensed or admitted to conduct business in California so long as such insurer pos sesses the aforementioned Best rating.

j. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City.

In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set -off from any sums owed Contractor.

k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery.

Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

l. Contractor shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to City for review and approval. All coverages for subcontractors shall be subject to all of the requir ements stated herein.

19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days’ written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise.

Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.

20. Maintenance and Inspection of Records. In accordance with generally accepted accounting pr inciples, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.

City and its authorized representatives shall have access to and the right to audit and reproduce any of Contractor's records regarding the services provided under this Agreement. Contractor shall maintain all such records for a period of at least three (3) years after termination or completion of this Agreement. Contractor agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.

91 9

21. Compliance with all Laws/Immigration Laws.

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement.

b. If the work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, to the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay no t less than the specified prevailing rates of wages to all such workers. The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Agreement, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

c. Contractor represents and warrants that Contractor:

(1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and

(3) Has properly maintained, and shall at all times during t he term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times duri ng the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.

e. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not 92 10
change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.

f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.

g. If Contractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee, that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City.

h. Contractor agrees to indemnify and hold City, its officers, officials, agents and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures City may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in connection with the performance of this Agreement.

22. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California and Contractor agrees to submit to the jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, California.

23. Integration. This Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the work to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any work performed which is inconsistent with or in violation of the provisions of this Agree ment shall not be compensated.

24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally , by e -mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission.

“CONTRACTOR” “CITY”

We the Creative City of Orange
27132 Paseo Espada, Suite B1225 300 E. Chapman Avenue San Juan Capistrano, CA 92675 Orange, CA 92866-1591 Attn: Joven Orozco Attn.: Paul Sitkoff

Telephone: 877-887-1315 Telephone: 714-288-2590
E-Mail: [email protected] E-Mail: [email protected]

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall cons titute one and the same 93 11
instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

[Remainder of page intentionally left blank; signatures on next page]

94 12
IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

JOVENVILLE, LLC, dba, WE THE CREATIVE, CITY OF ORANGE, a municipal corporation a California limited liability company

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

*NOTE: City requires the following signature(s) on behalf of the Contractor:
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to City.
95 EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]

96 1

CITY OF ORANGE
_____________________________________________________________ _______________________________ COMMUNITY SERVICES DEPARTMENT www.cityoforange.org PHONE: (714) 744-7274 FAX: (714) 744-7251

Our Orange Publication
(Graphic Design and Printing Services)
RFP 21-22.20

COMMUNITY SERVICES DEPARTMENT
230 E. Chapman Ave.

Orange, CA 92866

Date: November 11, 2021

The documents contained in this Request for Proposal (RFP) document are considered to be the invitation and not the full final representation of the documents needed to submit a successful response to the bid or proposal described herein.

Interested bidders should subscribe to receive bid updates and notifications via the City’s website at https://www.cityoforange.org/Bids.aspx?CatID=17 (two-step verification required), as well as emailing [email protected] to be added to the contact list for this specific bidder’s list in order to receive emailed updates of any revised/additional information and addenda.

It is the responsibility of the interested bidder to request being added to the bidder ’s list and to check the website frequently to look for any additional updates.

REQUEST TYPE: Graphic Design and Printing Services for Quarterly Publication Contact Name: Paul Sitkoff, Public Affairs and Information Manager Office #: 714-288-2590 (office)
E-Mail Address: [email protected]
[email protected]

DESCRIPTION OF REQUEST : The C ity of Orange, a Municipal Corporation, is requesting proposals from qualified contractors to provide all materials and services that will fulfill or exceed the requirements and conditions as set forth in this RFP.

Exh
ibit A

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97 RFP 21-22.20

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GENERAL PROVISIONS

1. A mandatory proposer’s meeting has been scheduled for Monday, November 29, 2021 at 1:30 p.m. at the Community Services Department Conference Room (230 E. Chapman Ave., Orange, CA 92866). No RSVP required.

2. The contractor shall carry valid insurance, which meets all City of Orange insurance requirements as outlined in Attachment 1.

3. Background/Security: All personnel e ngaged in performance of this work shall be employees of the contractor a nd as such sh all be warranted to possess su fficient experience and security records to perform this work.

4. The terms of the contract will be four-years (4), commencing May 1, 2022 and terminating April 30, 2026, beginning with the Fall 2022 issue and ending with the summer 2026 issue.

5. Proposals must be valid for a period of 120 calendar d ays from the Closing Date and Time for Receipt of Proposals. No proposal may be withdrawn after the submission date.

Exh
ibit A

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98 RFP 21-22.20

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SCOPE OF WORK

The proposer, if selected, shall provide creative design, layout, illustration, and production services as needed to produce the Quarterly Our Orange publication. Specifically, the proposer would perform one or more of the following duties:

1. Meet with Public Affairs and Information Manager and/or City designated project staff to determine the graphic needs of the publication.

2. Provide a quarterly production timeline to be approved by the City prior to the date when content for draft 1 is due.

3. Produce design, layout and graphics or illustration for Our Orange and deliver them to the City of Orange within mutually agreed upon deadlines.

4. Provide stock imagery where requested.

5. Produce necessary graphic/ layout revisions to the work identified above within set deadlines. Proof and spell check as necessary.

6. Produce the final art as required by the printer and City with necessary print instructions, including the designation or colors and materials to be used.

7. Coordinate and oversee printing of the publication.

8. Provide the “simplified mailing” delivery statistics: Current zip code counts for distribution, bundle the magazines in stacks based on carrier routes.

9. Coordinate and oversee “simplified mailing” process: bag by zip code into smaller postal zones/carrier routes and bag according to the carrier route.

10. Ensure that the mailing zip codes and delivery routes are correct before shipping.

11. Coordinate and oversee the shipping and delivery of publication to the designated Post Office.

12. Deliver the remaining copies to 230 E. Orange, Orange, CA 92866.

13. Utilize industry standard software in the production of the publication.

This scope of work may not be all inclusive and should be used as a guide by the proposer.

Suggestions for additions or deletions may be included in the proposal.

Exh
ibit A

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99 RFP 21-22.20

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PRINTING AND DELIVERY

1. PRINTING: A) Output to film, no overruns.

B) Heatset cover/heatset text.

2. SIZE: A) 8.125 x 10.25” with bleeds all around

3. INK/PAPER: A) 40 lb. Hi-Brite #80
B) 70 lb. #3 Sonoma Gloss
C) Open web text on 40# offset
D) 4 color process outside, black + 1 PMS inside (4/2) on a coated stock E) 2/2 inside pages- black & PMS

4. PRODUCTION: A) Production includes five (5) rounds of proofs and a blueline stage

5. PROOF: A) Prepare digital proofs for client review for Drafts 1-5.

B) Prepare a complete set of proofs that are trimmed and folded to create a color mockup of the entire magazine. Send to designated City project manager for approval before issue is set to the printer.

6. QUANTITY: A) 54,500 (Spring, Fall, and Winter issues) and 55,800 (Summer issue)

7. PAGES: A) 36 pages of copy plus cover and art work per brochure, 3 quarters.

B) 44 pages of copy plus cover and art work per brochure, summer quarter
C) The City may decide, at its discretion and depending on content needs, to reduce an individual issue by 4 to 8 pages. This decision will be communicated to the contractor no later than 24 hours after the release of that issue’s Draft 2.

8. BINDING: A) Saddle stitch 10.625” or 10.25” edge, trim and fold, collate and assemble.

B) Cut, fold, gather, saddle stitch along 10.25” side, trim, bundle in 50’s and turn at 25, carton office copies, bulk pack mailing copies

9. DELIVERY: A) Prepare for simplified mailing (Contractor to provide the “simplified mailing” delivery data: Current zip code counts for distribution, bundle the magazines in stacks based on carrier routes. Bag by zip code into smaller postal zones/carrier routes and bag according to the carrier route.); deliver 41,500 copies to Orange Main Post Office; balance delivers to City of Orange, 230 East Chapman Avenue

BROCHURE DESIGN/PRINT/DELIVERY TIMETABLE
Exh
ibit A

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100

RFP 21-22.20

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Sea
son Item Due Date
Fall 2022 Copy & photos supplied to graphic designer for draft 1 May 9, 2022 Printed publication delivered to Post Office August 4, 2022 Winter 2022-2023 Copy & photos supplied to graphic designer for draft 1 August 29, 2022 Printed publication delivered to Post Office November 17, 2022 Spring 2023 Copy & photos supplied to graphic designer for draft 1 November 14, 2022 Printed publication delivered to Post Office February 9, 2023 Summer 2023 Copy & photos supplied to graphic designer for draft 1 February 6, 2023 Printed publication delivered to Post Office April 27, 2023 Fall 2023 Copy & photos supplied to graphic designer for draft 1 May 8, 2023 Printed publication delivered to Post Office August 3, 2023 Winter 2023-2024 Copy & photos supplied to graphic designer for draft 1 August 28, 2023 Printed publication delivered to Post Office November 16, 2023 Spring 2024 Copy & photos supplied to graphic designer for draft 1 November 13, 2023 Printed publication delivered to Post Office February 8, 2024 Summer 2024 Copy & photos supplied to graphic designer for draft 1 February 5, 2024 Printed publication delivered to Post Office April 25, 2024 Fall 2024 Copy & photos supplied to graphic designer for draft 1 May 6, 2024 Printed publication delivered to Post Office August 1, 2024 Winter 2024-2025 Copy & photos supplied to graphic designer for draft 1 August 26, 2024 Printed publication delivered to Post Office November 14, 2024 Spring 2025 Copy & photos supplied to graphic designer for draft 1 November 12, 2024 Printed publication delivered to Post Office February 6, 2025 Summer 2025 Copy & photos supplied to graphic designer for draft 1 February 3, 2025 Printed publication delivered to Post Office April 24, 2025 Fall 2025 Copy & photos supplied to graphic designer for draft 1 May 5, 2025 Printed publication delivered to Post Office July 31, 2025 Winter 2025-2026 Copy & photos supplied to graphic designer for draft 1 August 25, 2025 Printed publication delivered to Post Office November 20, 2025 Spring 2026 Copy & photos supplied to graphic designer for draft 1 November 17, 2025 Printed publication delivered to Post Office February 5, 2026 Summer 2026 Copy & photos supplied to graphic designer for draft 1 February 2, 2026 Printed publication delivered to Post Office April 23, 2026

QUALIFICATIONS

The successful proposal shall demonstrate the following qualifications: Exh ibit A

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RFP 21-22.20

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1. Proposer must have a minimum of 5 years experience in producing similar publications for a public entity.
a. Submit a sample of a similar project or work that shows the quality the City of Orange might expect from the contractor. Up to two samples of prior work can be submitted for review.
b. Submit qualifications and names of key personnel and sub-contractors that may work on the publication.

2. A satisfactory performance record, including a demonstrated ability to meet deadlines and complete print products within estimated time frames.
a. Submit three current clients as references. Include contact names, description of projects, email addresses, and telephone numbers

3. Possess or have access to the necessary computer equipment to perform the work described within the RFP.

4. Include any other relevant information that would help in better understanding the company’s qualifications and experience.

5. Proposer must meet quarterly in-person with City staff to present final proof prior to printing.

SELECTION CRITERIA

Fiscal responsibility is a priority for the City; however, the evaluation of proposals will not be limited to price alone.

The successful proposal will demonstrate experience in providing services as described within this RFP. While the experience and resources of the successful contractor are important, it is critical that the proposed project supervisor for overall authority of this publication have extensive relevant experience and capability.

The following criteria shall be used in selecting the contractor ultimately chosen for this contract:

A. Contractor’s experience, qualifications, and ability to satisfy the work described within this RFP.

B. Qualifications of key personnel and experience of any sub -consultants working on these publications.

C. Demonstrated record of success by the contractor on work previously performed for the City and/or other municipalities or government agencies.

D. The contractor’s responsiveness to the overall request for information within this RFP.

Exh
ibit A

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Based on the information submitted, the Selection Committee will make a final choice. The successful contractor will execute an agreement with the City of Orange for services as described within this RFP. An interview may be required with the top scoring contractors.

The City of Orange reserves the right to negotiate cost of work within the Request for Proposal.

The following criteria shall be applied to each submittal:

The City reserves the right to revise this RFP prior to the date the proposals are due. Revisions to the RFP will be sent to all known participants. The City reserves the right to procure or contract for work. All proposals submitted in response to this RFP become the property of the City and are public record.

The City reserves the right to delay or cancel, in part or in its entirety, this RFP including, but not limited to: selection schedule, submittal date, and submittal requirements.

All known participants shall be notified of any cancellation or revisions prior to the submittal date.

The City also reserves the right to request additional information and clarifications regarding any proposals received.

It is understood that:

1. The contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work.

2. The contractor represents that it is experienced in performing the work and will follow professional standards in performance of the work. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices.

ADDITIONAL INSTRUCTIONS:

1. The City reserves the righ t to reject at any time any or all proposals, or parts thereof, and to waive any variances, technicalities and informalities, which do not impair the quality, or execution of the events.

2. The City reserves the right to reject any contractor who they feel does not meet a qualifying work experience or satisfying references.

3. Any bidder may withdraw its proposal by written request at any time prior to the time set for the opening of proposals by contacting Paul Sitkoff at [email protected] and [email protected]. Questions must be sent to both email addresses.

4. Contractor shall not be allowed to take advantage of any errors in or omissions fr om the RFP.

Full instructions will be given if such error or omission is discovered and timely called to the attention of the City. Exh
ibit A

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5. Nothing contained in this RFP shall create any contra ctual relationship between the c ontractor and the City. The City acce pts no financial responsibi lity for costs incurred by any c ontractor regarding this RFP.

6. All responses to this RFP accepted by the City shall become the exclusive property of the City.

Upon opening, all proposals accepted by the City shall become a matte r of public record and shall be regarded as public, with the exception of those elements of each propos al which are identified by the c ontractor as business or trade secrets and plainly marked as "trade secret", "confidential" or "proprietary". Each element of a proposal, which a contractor desires not to be considered a public record must be clearly marked as set forth above, and any blanket statement (i.e., regarding entire pages, documents, or other non -specific designations) shall not be sufficient and shall not bind the City in any way whatsoever. If disclosure is required under the California Public Records Act or otherwise by law (despite the proposer's request for confidentiality), the City shall not in any way be liable or responsible for the disc losure of any such records or part thereof.

7. Deadline to submit questions regarding this RFP are due by Friday, December 3, 2021 at 12:00 p.m. All questions should be submitted via email to Paul Sitkoff at [email protected] and Natalie Favela at [email protected].

Do not contact any other City employee or official regarding this RFP.

8. If any contractor contemplating the submittal of a proposal in response to this RFP is in doubt as to the true meaning of any part of this RFP, they may submit a written request through e- mail for an interpretation or correction thereof, by the questions deadline. Any interpretation or correction of any part of this RFP will be made only by addendum. Copies of such addendum will be e-mailed to those persons who have signed up to receive correspondence about this RFP by emailing [email protected].

Exh
ibit A

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PROPOSAL SUBMISSION

Proposals must be received on Thursday, December 16, 2021 by 2:00 P.M. at the City of Orange Community Services Office (230 E. Chapman Ave., Orange, CA 92866). Responses may be s ent via U.S. Mail, or delivered personally to the above address. Provide response to the above REQUEST FOR PROPOSAL and return all pages of the Request for Proposal, addendum (if applicable), and references. Please provide three copies of proposal packets (one original and two initialed copi es are acceptable). Three copies of Proposal Cost Sheet should be submitted separately in a sealed envelope.

Proposal bundle must be labelled appropriately:

Our Orange Publication (RFP 21-22.20)
(Graphic Design and Printing Services)

Attn: Paul Sitkoff

The City reserves the right to reject any and all Proposals and any item on items therein, and to waive any non-conformity of Proposals with this Request for Proposal , whether of a technical or substantive nature, as the interest of the City may require. Any submittal questions can be directed to Natalie Favela at [email protected].

TIME LINE (APPROXIMATE):

1. Mandatory Proposer’s Meeting: November 29, 2021 at 1:30 p.m.

2. Deadline for questions regarding RFP: December 3, 2021 at 12:00 p.m.

3. Proposals due: December 16, 2021 at 2:00 p.m.

4. Interview (if necessary): January 2022 (if needed)

5. Presentation to City Council: February 2022

6. Notice to Proceed: April 2022

Exh
ibit A

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Our Orange: PROPOSAL COST FORM
Submit this form in a separate sealed envelope along with any other fees and hourly rates for consideration.

Contractor _________________________________ Date__________________

Signer (Print Name) ____________________________ Signature _____________________________

All proposers shall provide an itemized annual cost for said services:

2022 Cost of
layout
per
issue
Cost for
additional
4 page
increments

Cost for
type
setting
changes

Cost for
additional
screens
Cost for
additional
photos
Cost for
saddle
stitch
bindery
(50 per
bundle)
Cost for
Post
Office &
City Hall
delivery
per issue
Cost for
printing per
issue
Fall
and
Winter

$ $ $ $ $ $ $ $

2022 Cost of
layout
per
issue
Cost for
additional
4 page
increments

Cost for
type
setting
changes

Cost for
additional
screens
Cost for
additional
photos
Cost for
saddle
stitch
bindery
(50 per
bundle)
Cost for
Post
Office &
City Hall
delivery
per issue
Cost for
printing per
issue
Summer $ $ $ $ $ $ $ $
Fall,
Winter,
Spring
$ $ $ $ $ $ $ $

2022 Cost of
layout
per
issue
Cost for
additional
4 page
increments

Cost for
type
setting
changes

Cost for
additional
screens
Cost for
additional
photos
Cost for
saddle
stitch
bindery
(50 per
bundle)
Cost for
Post
Office &
City Hall
delivery
per issue
Cost for
printing
per issue
Summer $ $ $ $ $ $ $ $
Fall,
Winter,
Spring
$ $ $ $ $ $ $ $

2025 Cost of
layout
per
issue
Cost for
additional
4 page
increments

Cost for
type
setting
changes

Cost for
additional
screens
Cost for
additional
photos
Cost for
saddle
stitch
bindery
(50 per
bundle)
Cost for
Post
Office &
City Hall
delivery
per issue
Cost for
printing
per issue
Summer
and
Spring
$ $ $ $ $ $ $ $
Exh
ibit A

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Attachment 1: Sample Liability Insurance

Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the contractor, his agents, representatives, employees or sub-contractors.

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence Form CG 00 01).

2. Insurance Services Office Form Number CA 00 01 covering Automobile Liability, code 1 (any auto).

3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.

Contractor shall maintain limits no less than:

1. General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability insurance or
other form with a general aggregate limit
is used, either the general aggregate limit
shall apply separately to th is
project/location or the general aggregate
limit shall be twice the required occurrence
limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: As required by the State of California.

4. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, it officers, officials and employees; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administra tion, and defense expenses.

Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, agents and employees are to be covered as additiona l insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor, including mater ials, parts or equipment furnished in connection with such work or operations. General Liability coverage shall be provided in the form of an Additional Insured Endorsement, or such other form as may be acceptable to the City, to the Contractor’s insuranc e policy, or as a separate owner’s policy. Exh
ibit A

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2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance as respects the City, its officers, officials and employees. Any insurance or self -insurance maintained by the City, its officers, officials and employees shall be excess of the Contractor’s insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice has been provided to the City

The Contractor shall furnish the City with original certificates of insurance and endorsements effecting coverage required by this clause. The endorsements should be on forms acceptable to City. All certificates and endorsements are to be received and approved by the City before work commences.

However, failure to do so shall not operate as a waiver of these insurance requirements. The City reserves the right to re quire complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

All insurance procured and maintained by the Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in the State of California and having a rating of Grade A or better and Class VII or better by the latest edition of Best's Key Rating Guide.

Contractor shall immediately notify the City if any requir ed insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by the City. In such a case, the City may procure insurance or self -insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set-off from any sums owed Contractor.

Contractor hereby agrees to waive subrogation, which any insurer of the Contractor may acquire from the Contractor by virtue of the payment of any loss. The Contractor agrees to obtai n any endorsement that may be necessary to effect this waiver of subrogation.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.

The Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.

Exh
ibit A

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Exhibit A

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ibit A

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Exh
ibit A

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E
xhibit A

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E
xhibit A

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ibit A

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Exh
ibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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Ex
hibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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Ex
hibit A

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Ex
hibit A

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Ex
hibit A

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Ex
hibit A

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Ex
hibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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E
xhibit A

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EXHIBIT “B”

COMPENSATION FOR SERVICES

[Beneath this sheet.]
145
Contract Year Issue Total per Issue Annual Total
Fall 2022 21,994.87$
Winter 2022 21,994.87$
Spring 2023 22,830.86$
Summer 2023 24,327.52$
Fall 2023 22,830.86$
Winter 2023 22,830.86$
Spring 2024 23,533.10$
Summer 2024 25,230.79$
Fall 2024 23,533.10$
Winter 2024 23,533.10$
Spring 2025 24,263.42$
Summer 2025 26,009.10$
282,912.45$ 282,912.45$
Year 4
SubTotal
Year 1 43,989.74$
Year 2 92,820.10$
Year 3 95,830.09$
50,272.52$
10% Contingency

GRAND TOTAL
28,291.25$
311,203.70$
146
Agenda Item
City Council
Item #: 3.6. 3/8/2022 File #: 22-0096
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Joseph C. Truxaw and Associates, Inc. for land surveying services.

2. SUMMARY
Land surveying services are required for preparation of plans and specifications for the Annual Pipeline Renewal Project. Joseph C. Truxaw and Associates, Inc. was selected with the lowest bid of $23,805. The cumulative 12-month total for the selected consultant exceeds $30,000.

3. RECOMMENDED ACTION
Approve the agreement with Joseph C. Truxaw and Associates, Inc. in the amount of $23,805 for land surveying services; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this agreement is $23,805 and will be funded through Water Fund (600).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.

Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.

6. DISCUSSION AND BACKGROUND
Existing water transmission mains on Heim Avenue are scheduled to be replaced as part of the Annual Pipeline Renewal Project. These water mains were constructed in the late 1950’sand 1960’s and have had leaks due to settlement and corrosion. The mains are also undersized per current standards.

Land survey of the proposed project area is required to develop plans and specifications for replacement of these existing water mains. The new transmission mains will provide a more reliable conveyance of water between pressure zones to enhance service and fire protection to the residents in the area.

A Request for Proposal for land surveying services was sent out to six private consultants on January City of Orange Printed on 3/3/2022Page 1 of 2
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147
Item #: 3.6. 3/8/2022 File #: 22-0096
17, 2022. Two bidders responded as follows:

Contractor Amount

1. Joseph C. Truxaw and Associates, Inc. $23,805

2. Kabarra Engineering $29,460
Joseph C. Truxaw and Associates, Inc. was selected with the bid of $23,805. Currently, the consultant has an agreement with the City to provide on-call survey service. With the additional land surveying service, their cumulative 12-month total will exceed $30,000, and the agreement requires City Council approval.

The selected consultant has successfully completed multiple land surveys for the City of Orange.

Staff recommends that Joseph C. Truxaw and Associates, Inc. be awarded the agreement in the amount of $23,805 for the Annual Pipeline Renewal Project land surveying services. Work is scheduled to begin in April 2022 and is expected to be completed within 42 calendar days.

7. ATTACHMENTS
· Location Map
· Professional Services Agreement with Joseph C. Truxaw and Associates, Inc.

City of Orange Printed on 3/3/2022Page 2 of 2
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148
Agenda Item
City Council
Item #: 3.6. 3/8/2022 File #: 22-0096
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Joseph C. Truxaw and Associates, Inc. for land surveying services.

4. FISCAL IMPACT
The total expenditure for this agreement is $23,805 and will be funded through Water Fund (600).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.

Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.

A Request for Proposal for land surveying services was sent out to six private consultants on January City of Orange Printed on 3/3/2022Page 1 of 2
powered by Legistar™
149
Item #: 3.6. 3/8/2022 File #: 22-0096
17, 2022. Two bidders responded as follows:

Contractor Amount

1. Joseph C. Truxaw and Associates, Inc. $23,805

The selected consultant has successfully completed multiple land surveys for the City of Orange.

7. ATTACHMENTS
· Location Map
· Professional Services Agreement with Joseph C. Truxaw and Associates, Inc.

City of Orange Printed on 3/3/2022Page 2 of 2
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LOCATION MAP
NTS

WATER DIVISION ANNUAL

PIPELINE RENEWAL PROJECT
N
151

PROFESSIONAL SERVICES AGREEMENT
[Land Surveying Services]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s _____ day of ____________, 20 22 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and JOSEPH C. TRUXAW AND ASSOCIATES, INC., a California corporation (“Contractor”), who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. As a material inducem ent to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are th e subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.

Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provid ing such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.

Mr. Ryan Visperas, Ass ociate Civil Engineer (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or his/her designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.

2. Compensation and Fees.

a. Contractor's total compensation for all services performed under this Agreement, shall not exceed TWENTY-THREE THOUSAND EIGHT HUNDRED FIVE DOLLARS and 00/100 ($23,805.00) without the prior written authorization of City.

3. Payment.

a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.
152
2 b. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

c. City will pay Contractor the amount invoiced within thirty (30) days after the approval of the invoice.

d. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.

4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously authorized in writing and approved by City as an amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

5. Licenses. Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontracto rs shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement.

6. Independent Contractor . At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely res ponsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security withholding and all other wages, salaries, benefits, taxes, exa ctions, and regulations of any nature whatsoever.

153
3 8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.

It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.

10. Time of Completion . Except as otherwise specified in Exhibit “A,” Contractor shall commence the work provided for in this Agreement within five (5) days of the Effective Date of this Agreement and diligently prosecute completion of the work in accordance with the time period set forth in Exhibit “A” hereto or as otherwise agreed to by and between the representatives of the parties.

11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work.

12. Reserved.

15. Equal Employment Opportunity . During the performance of this Agreement, Contractor agrees as follows:

a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. 154
4 Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a consultant to influence any decision of City in which Contractor knows or has reason to know that Contractor, its offic ers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code.

17. Indemnity.

a. To the fullest extent permitted by law , Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:

(1) Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s work under this Agreement, including any and all claims under any law pertaining to Contractor or its employees’ status as an independent contractor and any and all claims under Labor Code section 1720 related to the payment of prevailing wages for public works projects; and

(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph. 155
5 b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liabili ty arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.

c. Except for the Indemnite es, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.

18. Insurance.

a. Contractor shall carry workers ’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker s’ compensation benefits und er any City program.

b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) One Million Dollars ($1,000,000) per occurrence ; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.

c. Contractor shall maintain during the li fe of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($ 1,000,000); or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis.

e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability 156
6 insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement.

g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy.

Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.

j Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City.

In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set -off from any sums owed Contractor.

k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery.

Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with 157
7 this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.

20. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.

21. Compliance with all Laws/Immigration Laws.

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement.

b. If the work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, to the extent Contractor’s employees will perform any work that falls wi thin any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified preva iling rates of wages to all such workers . The general prevailing wage determinations for c rafts can be located on the web site of the Department of Industrial Relations (www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

c. Contractor represents and warrants that it:

(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and

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8 (4) Has responded, and shall at all times duri ng the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.

e. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.

f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.

24. Notice. Except as otherwise provide d herein, all notices required under this Agreement shall be in writing and delivered personally , by e -mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission. 159
9 “CONTRACTOR” “CITY”

Joseph C. Truxaw and Associates, Inc. City of Orange
1915 W. Orangewood Ave, Suite 101 300 E. Chapman Avenue Orange, CA 92868 Orange, CA 92866-1591
Attn.: Craig Di Bias Attn.: Jose M. Diaz

Telephone: (714) 935-0265 Telephone: (714) 288-2475 E-Mail: [email protected] E-Mail: [email protected]

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

[Remainder of page intentionally left blank; signatures on next page]

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10 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

JOSEPH C. TRUXAW AND ASSOCIATES, CITY OF ORANGE, a municipal corporation INC., a California corporation

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
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Agenda Item
City Council
Item #: 3.7. 3/8/2022 File #: 22-0107
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Park Consulting Group, Inc. for Enterprise Land Management System Procurement Services.

2. SUMMARY
The agreement with Park Consulting Group, Inc. for Enterprise Land Management System (LMS) Procurement Services will facilitate the planning, project management, LMS inventory, and demos leading to the solicitation and selection of an LMS solution provider.

3. RECOMMENDED ACTION
Approve professional services agreement with Park Consulting Group, Inc. in the amount not to exceed $57,500 for Land Management System Procurement Services, and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this agreement is $57,500, and will be funded through the Building Records Management Fund (110.6001.56510.20482).

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service.
c: Enhance technology to improve public accessibility to information and services.

6. DISCUSSION AND BACKGROUND
In September 2010, the City entered into an agreement with CRW Systems Inc for the installation, data conversion, and training on the TrakIt software for the City’sLand Management System (LMS).

The system was used for the issuance and administration of Building Permits, Code Enforcement, and Planning records. As of the past few years, the software version has become outdated and has been plagued with issues including periodic system crashes, unintended inputs, and limited features.

Software support has not been responsive to service calls.

The City is now looking to implement a comprehensive and integrated cloud-based enterprise LMS which meets current and future business needs. To this end, staff has consulted with other agencies in similar situations including the cities of Santa Ana, Irvine, and the County of Orange. Staff has learned the challenges and complexity of selecting a fully comprehensive and integrated LMS for use citywide. Because of the scope and complexity of an LMS, staff has determined the prudent City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.7. 3/8/2022 File #: 22-0107
citywide. Because of the scope and complexity of an LMS, staff has determined the prudent approach is to seek professional consultant services to assist in the solicitation and selection of an LMS provider. PCG will ensure that all required functionality / data are defined to be scoped in the new LMS.

PCG has extensive experience and specializes in Land Management System consulting and has assisted local agencies with procurement and implementation services, some of which include the County of Orange; cities of Santa Ana, Newport Beach, Fullerton, Huntington Beach, Lake Forest, Aliso Viejo, Tustin, and Costa Mesa. Because of its vast experience and specialized knowledge in this kind of professional procurement services, staff is recommending award of the agreement to PCG.

The total amount of the agreement with PCG is $57,500 including a ten percent contingency. The agreement includes planning and project management; inventory of LMS users, application and record types, fees, forms/reports; future-state inventory of LMS capabilities; identification of potential LMS vendors and demos, and recommendations for go-forward procurement and implementation.

PCG’s services are expected to be completed within three and a half months after notice to proceed.

7. ATTACHMENTS
· Professional Services Agreement with PCG
City of Orange Printed on 3/3/2022Page 2 of 2
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Agenda Item
City Council
Item #: 3.7. 3/8/2022 File #: 22-0107
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Agreement with Park Consulting Group, Inc. for Enterprise Land Management System Procurement Services.

4. FISCAL IMPACT
The total expenditure for this agreement is $57,500, and will be funded through the Building Records Management Fund (110.6001.56510.20482).

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service.
c: Enhance technology to improve public accessibility to information and services.

Software support has not been responsive to service calls.

The City is now looking to implement a comprehensive and integrated cloud-based enterprise LMS which meets current and future business needs. To this end, staff has consulted with other agencies in similar situations including the cities of Santa Ana, Irvine, and the County of Orange. Staff has learned the challenges and complexity of selecting a fully comprehensive and integrated LMS for use citywide. Because of the scope and complexity of an LMS, staff has determined the prudent City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.7. 3/8/2022 File #: 22-0107
citywide. Because of the scope and complexity of an LMS, staff has determined the prudent approach is to seek professional consultant services to assist in the solicitation and selection of an LMS provider. PCG will ensure that all required functionality / data are defined to be scoped in the new LMS.

PCG’s services are expected to be completed within three and a half months after notice to proceed.

7. ATTACHMENTS
· Professional Services Agreement with PCG
City of Orange Printed on 3/3/2022Page 2 of 2
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PROFESSIONAL SERVICES AGREEMENT
[Enterprise Land Management System Procurement Services]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s _____ day of ____________, 20 22 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and PARK CONSULTING GROUP, INC., a California corporation (“Contractor”), who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. As a material inducem ent to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are th e subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.

Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provid ing such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.

Frank Sun, Assistant P ublic Works Director/City Engineer (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.

2. Compensation and Fees.

a. Contractor's total compensation for all services performed under this Agreement, shall not exceed FIFTY-TWO THOUSAND FIVE HUNDRED DOLLARS and 00/100 ($52,500.00) without the prior written authorization of City.

c. In addition to the scheduled services to be performed by the Contractor, the parties recognize that additional, unforeseen work and services may be required by City’s Project Manager. In anticipation of such contingencies, the sum of FIVE THOUSAND DOLLARS and 00/100 ($5,000.00) has been added to the total compensation of this Agreement. City’s Project 178
2 Manager may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as City’s Project Manager and the Contractor may agree upon in advance. Said additional work or services and the amount of compensation therefor, up to the amount of the authorized contingency, shall be memorialized in the form of an Amendment to Agreement approved by the City Manager on a form acceptable to the City Attorney. The Contractor agrees to perform only that work or those services that are specifically requested by the City’s Project Manager. Any and all additional work and services performed under this Agreement shall be completed in such sequence as to assure their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate or proposal submitted to and approved by City’s Project Manager prior to the commencement of such services.

d. The total amount of compensation under this Agreement, including contingencies, shall not exceed FIFTY-SEVEN THOUSAND FIVE HUNDRED DOLLARS and 00/100 ($57,500.00).

3. Payment.

a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.

b. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

c. City will pay Contractor the amount invoiced within thirty (30) days after the approval of the invoice

d. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.

4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously authorized in writing and approved by City as an amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

5. Licenses. Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are requ ired under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement.

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3 6. Independent Contractor . At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Agreement. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materi als and equipment which may be required for furnishing services pursuant to this Agreement. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.

Contractor acknowledges that it and any subcontractors, agents or employees employ ed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, P ublic Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

7. Contractor Not Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied , to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.

It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.

10. Time of Completion . Except as otherwise specified in Exhibit “A,” Contractor shall commence the work provided for in this Agreement within five (5) days of the Effective Date of this Agreement and diligently prosecute completion of the work in accordance with the time period set forth in Exhibit “A” hereto, or as otherwise agreed to by and between the representatives of the parties.

11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work.

12. Reserved.

13. Delays and Extensions of Time. Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing 180
4 at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor’s control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must sp ecify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.

15. Equal Employment Opportunity . During the performance of this Agreement, Contractor agrees as follows:

b. Contractor shall, in al l solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

16. Conflicts of Interest. Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a consultant to influence any decision of City in whi ch Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 8710 3 of the Government Code.

Contractor further agrees that it shall not be eligible to work as the design/build firm for the project that is the subject of this Agreement.

17. Indemnity.

a. To the fullest extent permitted by law , Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents 181
5 and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:

(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willfu l misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph.

b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.

18. Insurance.

a. Contractor shall carry workers ’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker s’ compensation benefits under any City program.

b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liabil ity insurance or commercial general liability insurance: the greater of (1) One Million Dollars ( $1,000,000) per occurrence ; or (2) all the 182
6 insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.

c. Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($1,000,000); or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis.

d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements o f this Agreement are sufficient to cover the obligations of Contractor under this Agreement.

e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement.

f. Contractor shall maintain during the life of this Agr eement professional liability insurance covering errors and omissions arising out of the performance of this Agreement with a minimum limit of One Million Dollars ($1,000,000) per claim. Contractor agrees to keep such policy in force and effect for at least five (5) years from the date o f completion of thi s Agreement.

g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be call ed upon to cover any loss under the policy.

Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.

h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse with out at least ten (10) days’ prior written notice to City.

i. Except for professional liability insurance coverage that may be required by this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of professional liability insurance coverage, such coverage shall be issued by compan ies either 183
7 licensed or admitted to conduct business in California so long as such insurer pos sesses the aforementioned Best rating.

j Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City.

In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set -off from any sums owed Contractor.

k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery.

20. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.

21. Compliance with all Laws/Immigration Laws.

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement.

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8 b. If the work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, to the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for c rafts can be located on the w ebsite of the Department of Industrial Relations (www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

c. Contractor represents and warrants that it:

(1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including , without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and

(3) Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite e nforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.

e. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.

f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.

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9 g. If Contractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee, that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City.

“CONTRACTOR” “CITY”

Park Consulting Group, Inc. City of Orange
200 Spectrum Center Drive, Suite 300 300 E. Chapman Avenue Irvine, CA 92618 Orange, CA 92866-1591
Attn.: Glenn Park Attn.: Frank Sun

Telephone: (626) 224-1656 Telephone: (714) 744-5529 E-Mail: [email protected] E-Mail: [email protected]

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

[Signatures on the next page]

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10 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

PARK CONSULTING GROUP, INC., CITY OF ORANGE, a municipal corporation a California corporation

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
188

Prepared for:

City of Orange
Attn: Christopher Cash & Susan Galvan
City of Orange
300 E. Chapman Ave.

Orange, CA 92866

Prepared by:

Park Consulting Group
200 Spectrum Center Drive, Suite 300
Irvine, CA 92618
Glenn Park
[email protected]

ENTERPRISE LAND MANAGEMENT SYSTEM
LMS Procurement Services

O R A N G E

C A L I F O R N I A February 7, 2022
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City of Orange - LMS Procurement Services

SCOPE OF SERVICES

The team at Park Consulting Group have applied experiences and lessons learned from past LMS procurement client projects to recommend the following consulting services needed for the City of Orange’s LMS Procurement Project:

1. Core Principles of Park Consulting Group
• Serve as a steward to the City to have the interests of the leaders, staff, and constituents in mind to identify opportunities to save time and money, and to work to achieve the City’s goals. • Serve as an advocate for the City in interactions with project related vendors, consultants, and contractors.
• Serve as an advisor for the City to support communication with leadership and key stakeholders, including input for staff reports and constituent communications.

2. LMS Procurement Services

• Planning and Project Management
• Establish and Confirm Approach and Timeline
PCG will establish and confirm the finalized approach and timeline that identifies the tasks, activities, schedule, deliverables, and major milestones to successfully deliver the project. • Facilitate kick-off and ongoing meetings with staff team members PCG will meet with Orange’ staff team members to present timeline, deliverables, staff participant roles and responsibilities, and highlight other project activities items to inform of the planned approach. During these meetings, PCG will also review tools and templates that will be utilized to capture project details.
• Status Reports and Ongoing Project Updates
PCG will provide regular status reports to that provide an overview of the health of the project.

Details will include status, timeline and milestones progress, recent accomplishments, upcoming tasks and activities, risks/ issue logs, and other project status tracki ng. PCG will also organize and facilitate regular status meetings with Orange’s staff team members.

• LMS Inventory
• Inventory of LMS Users, Application and Record Types, Fees, and Forms/ Reports PCG will facilitate working sessions and interviews with staff team members to identify required inventory of functional requirements / data. PCG will develop a template that will capture and manage these details including users, application types, record types , fees, reports, integrations, and other technical requirements. This will ensure that all required functionality / data are defined to be scoped in the new LMS.

• Future-State Inventory of desired LMS capabilities
PCG will participate in working sessions with staff team members to identify desired future- state capabilities. PCG will develop a template that will capture and manage these details including integrations, modules, functionality, and application extensions (mobile, online, etc.). This will ensure that all desired future-state capabilities are defined to be scoped in the new LMS.

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City of Orange - LMS Procurement Services

• LMS Demos
• Identify Potential LMS Vendors
PCG will work with the City to identify a comprehensive list of LMS solution providers. PCG will compile key contact information about each vendor and review the listing with the City to prioritize a short-list of vendors to incite to LMS Demos. PCG will coordinate with the City to communicate with the vendors.

• LMS Demos
PCG will facilitate working sessions to develop a comprehensive demo process and develop agendas, demo scripts, and questions for the selected vendors. PCG will also provide sample best practice permitting system demo scripts and questions that will be incorporated into a final demo script and agenda. PCG will attend and support demo facilitation to ensure scripts are followed and questions are answered by proposing vendors.

• Go Forward Decision Options
PCG will facilitate post-Demo debrief with staff team members to determine go-forward procurement and implementation options for the City. The inventory of LMS requirements and desired capabilities will be reviewed against each vendor presentation. This will help inform the City on the best path forward for procurement to determine if a more broadened procurement approach will need to be taken.

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City of Orange - LMS Procurement Services

Cost Proposal and Duration of Services

A. LMS Procurement Services
LMS Procurement services are proposed to be provided with a monthly compensation of $15,000 per month. The duration of services will not exceed 3.5 months with a total not to exceed compensation amount of $52,500.

Milestones/ Deliverables Timeline $ Amount
Planning and Project Management (ongoing
throughout project) 0.5 Months $7,500
LMS Inventory 1.5 Month $22,500
LMS Demos 1.5 Month $22,500
TOTAL $52,500

Key Assumption:
• Current City department/ divisions considered for the project include Building and Safety -Public Works, Development Services/Engineering-Public Works, Planning-Community Development, Fire, Police, and Community Services
• PCG should have the full ability to deliver services remotely with no on- site visits and/ or incurred travel costs.
• A primary contact will be available throughout the duration of services to support facilitation, coordination and decision making to meet the proposed timeline and deliverables. • Subject matter experts are available throughout the duration of services to successfully deliver PCG services within the proposed timeline and deliv erables. The assigned Subject matter experts provided to PCG will also have a comprehensive knowledge of current-state inventory and future- state desired capabilities.
• In order to meet timelines, City SMEs will answer questions and provide feedback and responses in a timely manner (within 2 business days).

B. SOW Review & Contract Negotiation (If Requested)
If the city chooses to move forward with a LMS vendor, PCG can perform a review and provide feedback of the proposed quote, agreement, and scope of work based on the details of the City’s requirements inventory. PCG will prepare feedback from the quote, agreement, and scope of work review to the City to help prepare for subsequent contract discussions and negotiations with the vendor . PCG cam also assist the City staff team in preparing for negotiation meetings with the vendor and attend negotiation meetings to support the City staff. If required, PCG can also meet with purchasing and legal staff during the contract negotiation process. PCG can respond to action items and next steps to ensure procurement goals and critical milestones for contracting are met.

C. LMS Project Implementation Services (If Requested)
The LMS Project Implementation services can be initiated immediately after the completion of the LMS Procurement project, if allowable by the City and new LMS software vendor . PCG can provide additional implementation services, if requested by the City. PCG’s level of effort to deliver required implementation services for the project will be aligned to typical LMS Implementation Phases and Methodology. PCG will work closely with the City’s Project Team to determine an LMS Implementation Project services budget and proposal that aligns to the needs of the City.

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Agenda Item
City Council
Item #: 3.8. 3/8/2022 File #: 22-0121
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Agreement with L.A. Consulting, Inc. for evaluation of maintenance and operational practices.

2. SUMMARY
L.A. Consulting, Inc. (LAC) will evaluate current processes, systems, and methods of Public Works and Community Services operations, including streets, traffic, stormwater, parks, facilities, and potable water providing an overview of the current state of operations and maintenance. LAC will further identify and document opportunities for improved efficiency and effectiveness to operations outlining specific processes and configurations that should be included in the soon to be proposed computerized maintenance management system (CMMS).

3. RECOMMENDED ACTION
Approve the agreement with L.A. Consulting in the amount of $47,655 for evaluation services for maintenance and operational practices, and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this agreement is $47,655 and will be funded in Workorder Management (20285) through Computer Replacement (790).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.

6. DISCUSSION AND BACKGROUND
L.A. Consulting, Inc. (LAC) has provided consulting services for the City in the specialized area of maintenance management, spanning 19 years with an initial City Council agreement approval on July 11, 2000. LAC is very familiar with the City of Orange maintenance and operations having provided an assessment and final recommendations report in 2001 and continuing services through 2018.

Continuing with this established relationship, LAC will evaluate current 2022 processes, systems, and methods of Public Works and Community Services operations, including streets, traffic, stormwater, parks, facilities, and potable water, providing an overview of the current state of operations and maintenance.

LAC will further identify and document opportunities for improved efficiency and effectiveness to City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.8. 3/8/2022 File #: 22-0121
LAC will further identify and document opportunities for improved efficiency and effectiveness to operations, outlining specific processes and configurations that should be included in the soon to be proposed computerized maintenance management system (CMMS). The proposed CMMS will come as a result of a competitive selection process that was recently completed and will be coming forward for City Council consideration in the next few months, after the evaluation by LAC is completed.

One notable aspect of the proposed evaluation will compare the current 2022 state against the recommendations made by LAC in their 2001 Final Report of Recommendations. LAC will evaluate the status of each of the 2001 Final Report Recommendations, documenting any impacts to operations.

Harry Lorick, the owner and principal of LAC, is also currently serving as President of the Southern California Chapter of the American Public Works Association (APWA). LAC possesses an impressive resume and familiarity with the niche area of maintenance management.

Potentially, staff could return to City Council for additional consulting services with LAC to provide guidance during the implementation of the new CMMS. The scope of those potential implementation services can only be fully identified as an outcome of this evaluation. If the services become an identified need, staff would propose them alongside the award of contract for the new CMMS.

7. ATTACHMENTS
· Agreement with L.A. Consulting, Inc.

City of Orange Printed on 3/3/2022Page 2 of 2
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Agenda Item
City Council
Item #: 3.8. 3/8/2022 File #: 22-0121
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Agreement with L.A. Consulting, Inc. for evaluation of maintenance and operational practices.

4. FISCAL IMPACT
The total expenditure for this agreement is $47,655 and will be funded in Workorder Management (20285) through Computer Replacement (790).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
d: Effectively manage and develop City assets.

LAC will further identify and document opportunities for improved efficiency and effectiveness to City of Orange Printed on 3/3/2022Page 1 of 2
powered by Legistar™
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Item #: 3.8. 3/8/2022 File #: 22-0121
LAC will further identify and document opportunities for improved efficiency and effectiveness to operations, outlining specific processes and configurations that should be included in the soon to be proposed computerized maintenance management system (CMMS). The proposed CMMS will come as a result of a competitive selection process that was recently completed and will be coming forward for City Council consideration in the next few months, after the evaluation by LAC is completed.

7. ATTACHMENTS
· Agreement with L.A. Consulting, Inc.

City of Orange Printed on 3/3/2022Page 2 of 2
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PROFESSIONAL SERVICES AGREEMENT
[Evaluation Services for Maintenance and Operational Practices]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s _____ day of ____________, 20 22 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and L.A. CONSULTING, INC., , a California corporation (“Contractor”), who agree as follows:

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A,” which is attached hereto and incorporated herein by reference. As a material inducem ent to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully understands the difficulties and restrictions in performing the work. The services which are th e subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.

Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provid ing such services to a municipal agency. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices. The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.

Mike Dering, Information Technology Project Manager (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or his designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.

2. Compensation and Fees.

a. Contractor's total compensation for all services performed under this Agreement, shall not exceed FORTY-SEVEN THOUSAND FIVE HUNDRED SI XTY-FIVE DOLLARS and 00/100 ($47,565.00) without the prior written authorization of City.

b. The above compensation shall include all costs, including, but not limited to, all clerical, administrative, overhead, insurance, reproduction, telephone, trave l, auto rental, subsistence and all related expenses.

3. Payment.

a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.
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2 b. All such invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

c. City will pay Contractor the amount invoiced within thirty (30) days after the approval of the invoice.

d. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.

4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously au thorized in writing and approved by City as an amendment to this Agreement. City’s Project Manager is authorized to approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

5. Licenses. Contractor represents that it and any subcontractors it may e ngage, possess any and all licenses which are required under state or federal law to perform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business lic ense, at its cost, during the performance of this Agreement.

7. Contractor Not Agent. Except as City may specif y in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

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3 8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” shall perform work provided for under this Agreement.

It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.

11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor shall do all things necessary and incidental to the prosecution of Contractor's work.

12. Reserved.

13. Delays and Extensions of Time. Contractor's sole remedy for delays outside its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor’s control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writing, wh y the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.

15. Equal Employment Opportun ity. During the performance of this Agreement, Contractor agrees as follows:

Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms 199
4 of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, mental or phys ical disability, or any other basis prohibited by applicable law.

17. Indemnity.

a. To the fullest extent permitted by law , Contractor agrees to indemnify, defend and hold City, its City Council and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:

(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active negligence or willful misconduct of City. Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph.

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5 b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liabili ty arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.

d. The indemniti es set fort h in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors.

18. Insurance.

a. Contractor shall carry workers ’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any worker s’ compensation benefits under a ny City program.

b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) One Million Dollars ($ 1,000,000) per occurrence; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.

c. Contractor shall maintain during the life of this Agreement, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($1,000,000) or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non-owned and hired vehicles and be written on an occurrence basis.

e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability 201
6 insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement.

f. Contractor shall maintain during the life of this Agreement professional liability insurance covering errors and omissions arising out of the performance of this Agreement with a minimum limit of One Million Dollars ($1,000,000) per claim. Contractor agrees to keep such policy in force and effect for at least five (5) years from the date o f completion of this Agreement.

g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upo n to cover any loss under the policy.

Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.

h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall fur nish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days’ prior written notice to City.

i. Except for professional liability insurance coverage that may be required by this Agreement, all insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent li ne of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. In the case of professional liability insurance coverage, such coverage shall be issued by companies ei ther licensed or admitted to conduct business in California so long as such insurer pos sesses the aforementioned Best rating.

j Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City.

In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all d amages resulting therefrom, by way of set -off from any sums owed Contractor.

k. Contractor agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery .

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7 19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days’ written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise.

20. Maintenance and Inspection of Records. In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and ot her information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement.

21. Compliance with all Laws/Immigration Laws.

a. Contractor shall be knowledgeable of and c omply with all local, state and federal laws which may apply to the performance of this Agreement.

b. If the work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, to the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for c rafts can be located on the web site of the Department of Industrial Relations (www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

c. Contractor represents and warrants that it:

(1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the I mmigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and

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8 (3) Has properly maintained, and shall at all times during the term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I -9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

d. Contractor shall require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.

e. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.

f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.

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9 24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally , by e -mail, or by first class U.S. mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e- mail shall be deemed received on the date of the e-mail transmission.

“CONTRACTOR” “CITY”

L.A. Consulting, Inc. City of Orange
2711 N. Sepulveda Blvd, Ste. 602 300 E. Chapman Avenue Manhattan Beach, CA 90266 Orange, CA 92866-1591
Attn.: Harry C. Lorick Attn.: Mike Dering

Telephone: (310)374-5557 Telephone: (714)-744-2285 E-Mail: [email protected] E-Mail: [email protected]

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

[Remainder of page intentionally left blank; signatures on next page]

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10 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

L.A. CONSULTING, INC., a California CITY OF ORANGE, a municipal corporation corporation

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

*NOTE: City requires the following signature(s) on behalf of the Contractor:
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolutio n, certified by the Secretary close in time to the execution of the Agreement, must be provided to City.
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EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “We Help Public Works Work”

Phone: 310-374-5777• Fax: 310-374-5557• email: [email protected] 2711 Manhattan Avenue, Suite 602 • Manhattan Beach, California 90266 Internet address: www.laconsulting.com

February 4, 2022

Mr. Mike Dering, PMP
Project Manager
Information Technology
300 E. Chapman Avenue
Orange, CA 92866
[email protected]

Subject: Scope of Work for Evaluation of Maintenance and Operational Practices for Public Works and Community Services Departments

Dear Mr. Dering:

Pursuant your request and recent email, we have enclosed the revised subject scope of work to include the proposed schedule and cost for specific tasks to evaluate current processes, systems, and methods for the Public Works and Community Services Departments. This will provide the basis for establishing and configuring the new CMMS, Cartegraph, to be a tool for process improvement.

Also, specific recommendations will be provided for these future opportunities identified that may contribute to the continuous improvement business and systems process being utilized by both Departments in the application of the new system.

We appreciate the opportunity and look forward to assisting City in optimizing their limited resources.

Sincerely,

Harry C. Lorick, P.E., PTOE, PWLF
Principal

Enclosure:
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Proposed Scope of Work
Evaluation of Maintenance and Operational Practices
City of Orange Public Works and Community Services Departments

This scope of services is based on a discussion with City staff in an on-site meeting on January 14th, 2022, and feedback via email on February 2, 2022.

SCOPE OF WORK OVERVIEW
The subject scope of work outlined herein is to be conducted by LA Consulting, Inc. (“LAC”) for the City of Orange (“City”) Public Works Department’s (“Department”) and Community Services Department (“CS Department”).

The project entails an evaluation of current processes, systems, and methods of both Department’s and CS Departments’ operations, including streets, traffic, stormwater, parks, facilities, and potable water, and a review of the recommendations from LAC’s Final Report from 2001. LAC will provide an overview of the current state of operations and maintenance and will outline specific processes and configuration that should be included in the implementation of the new computerized maintenance management system (CMMS). Further, LAC will identify and document opportunities for improved efficiency and effectiveness to operations offered by the new system. In addition to the work within the following scope, LAC will be available to support the implementation of the new system and the recommendations for future improvements by guiding staff in a program that will work for the City.

Successful completion of this project is dependent on the effective interaction and participation between LAC and Departmental personnel, as well as LAC’s experience. The approach has been developed to ensure effective and interactive communication to lead to a comprehensive result that reflects the Departments’ true needs that can be implemented in the new system.

WORK TASKS
TASK 1 – PROJECT INITIATION
The following tasks are intended to familiarize Departments’ employees with the approach LAC will execute during the evaluation and the guidance LAC will provide. Furthermore, these tasks serve to educate LAC of both Department’s current work processes and assets, as well as to collect information regarding current operations and business practices, input from Public Works and Community Services staff, management, and City Administration.

TASK 1.1 – PROJECT STARTUP
During this first task, we will begin our team planning efforts associated with the project. LAC will initiate the project immediately after the contract is signed. LAC staff will conduct an initial presentation with the Director of Public Works, Deputy Director, Director of Community Services, and the IT Project Manager (PM), along with related operations managers and analysts, to review the City’s objectives and their perception of the approach and procedures needed to compile and analyze their maintenance and operational information.

Up to ten (10) structured interviews will be conducted with key leadership, including the managers of Fleet, Maintenance, Water Operations, Community Services, Parks and other key staff that have a major impact on controlling and directing operations. Further, site visits will be conducted by the LAC team to observe general work performed and existing assets. The objective of these sessions is to develop working relationships with key staff and gain a general understanding of each of the objectives. Additional meetings may be held to refine the project’s 209

LA Consulting, Inc.© February 2022 Page 2 of 8 City of Orange, CA approach, work plan, and methodology to effectively accommodate the specific needs and desires of the City.

End Product: Key City staff will be consulted, and project concepts will be understood.

TASK 1.2 – PREPARE DETAILED WORK PLAN
LAC will prepare a detailed schedule and work plan based on our observations and discussions with each group in the initial task. The project tasks will be further refined with milestone changes if the information obtained from Task 1.1 warrants.

End Product: A detailed schedule and work plan will be prepared.

TASK 1.3 – ESTABLISH A REVIEW COMMITTEE
A Review Committee from both Public Works and Community Services will be established to ensure an effective project, with communication and credibility, among all levels of the organization. The group be updated at major milestones and will provide direction to LAC. In addition, the Committee will periodically review progress and accomplishments, providing LAC with guidance. The Committee members will develop a firsthand understanding of the project’s process and developments, as they are documented and presented. This method will promote a sound understanding of the analysis process and ensure the credibility of LAC’s findings and recommendations. It was recommended that the City appoint two in-house Study Coordinators (i.e. one from Public Works and another from Community Services) to work closely with LAC.

These two individuals will assist in researching and compiling any required operational data and act as a liaison between the Review Committee and LAC.

The Committee will consist of selected key City executive and management representatives.

They will work with the project team on the current Public Works and Customer Services information; and finally, the review of the findings and recommendations. In addition, the participants will identify contacts that will assist in compiling project data.

End Product: A Review Committee and the two Study Coordinators will be identified to work with LAC to ensure project credibility and assist in data research.

TASK 1.4 – CONDUCT ORIENTATION
A general orientation session will be conducted to further establish uniform understanding of LAC’s role between the Committee and the project team during the second week of the on-site effort. During this meeting, LAC will describe, in detail, the proposed approach, schedule, and identify any potential obstacles. A review of the systematic approach and the operational data that will be researched and compiled, will be presented to all Committee members and available employees, along with the benefits that can be expected from the system implementation.

End Product: A uniform understanding between staff participating in the evaluation and LAC as to the project objectives, work methods, and schedule.

TASK 2 – DATA COLLECTION AND BASELINE PREPARATION
After a Review Committee has been established and orientation meetings have taken place, LAC will interview staff and collect data on all aspects of the City’s current Public Works and Community Service maintenance and operations. This will be accomplished through a series of sub-tasks described below.
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LA Consulting, Inc.© February 2022 Page 3 of 8 City of Orange, CA TASK 2.1 – WORK HISTORY (CITY PERFORMS – LAC ANALYZES)
LAC will review work performed for each major activity within each group based on interviews and data from the Department’s CMMS database, MaintStar. The data compiled will be analyzed and will include person-days of annual work, by activity, as well as work units accomplished and cost per unit. This analysis will be performed for each activity.

End Product: A history of maintenance and operational activities will be documented for a multi-year basis.

TASK 2.2 – FEATURES INVENTORY AND ASSET COLLECTION REVIEW (CITY PERFORMS – LAC ANALYZES)
With the assistance of City employees, LAC will confirm the summaries of inventories of infrastructure features that relate to work being performed. Existing data files and spatial data, information from staff, and observations will be used to determine values. The City will assist in the actual research, with guidance from LAC.

Existing records, including CMMS, Finance, and GIS data, will be utilized in lieu of gathering data in the field. LAC will perform some limited confirmation of the information for accuracy.

End Product: Existing infrastructure features, inventories, and history will be compiled and confirmed.

TASK 2.3 – RESOURCE DATA (CITY PERFORMS – LAC ANALYZES) LAC will request a historical listing by general category for labor, equipment, and material resources used with the assistance of City employees. LAC shall determine the format after consultation with the Review Committee. Further, LAC will request the historical calculated avoidable overhead that has been applied to labor costs within the CMMS.

End Product: Resource data will be collected.

TASK 2.4 – FINANCIAL RESOURCE DATA (CITY PERFORMS – LAC

ANALYZES)
The existing systems identified, along with past budgetary information, will be used to collect the financial data. Historical workloads will be compiled from data found within the Department’s CMMS. This includes budgets compiled for the last two years; both in house and contract numbers will be compiled.

End Product: Workload and financial data will be captured.

TASK 2.5 – MANAGEMENT APPROACH AND PREPARATION OF BASELINE PAPER
All key strategic goals and functions identified in structured interviews will be further analyzed through the appraisal of available planning documents such as inventories, needs identification systems, complaints, routine maintenance schedules, activity guidelines, work methods, and work programs. The scheduling methods and assignment of work processes will be recorded and discussed with various staff. The work orders or log items that track work performed and hours/resources expended will be identified and observed. Finally, the control mechanisms, such as generated reports and analysis, will be evaluated. Any graphs and/or figures that track work effort, accomplishment, and expenditures will be obtained and evaluated. 211

LA Consulting, Inc.© February 2022 Page 4 of 8 City of Orange, CA These existing work processes will be documented in a short summary in context of the basic management processes of planning, organizing, scheduling, and controlling. In addition, the maintenance structure and organization will be identified, and general assignments and responsibilities of key staff will be outlined.

LAC will flowchart how work is currently identified, planned, organized, scheduled, performed, and monitored for the Department or maintenance yards using the information obtained in previous steps. All reporting information will be documented. Both proactive (preventative) and responsive maintenance will be identified.

LAC will outline the general workflow for each group, including data and automated system approaches for all groups. This subtask will be documented in a concise 7-12 page working paper and distributed to the Review Committee. LAC will present baseline information to Review Committee for their input.

End Product: Overview of existing management processes and current and historical data for each group, documented in a concise baseline working paper (7-12 pages).

TASK 3 – EVALUATE OPPORTUNITIES
The LAC team will use collected information and previous experience to compare historical and current maintenance and operations, as well as discover opportunities where additional improvement can be made. Comparisons will also be made to various other groups within the City, other comparable agencies, published benchmark data, and from LAC’s experience. The following subtasks will be performed in this effort:

TASK 3.1 – WORKFLOW ANALYSIS
An idealized workflow, borrowing from the American Public Works Association (APWA), National Association of City Engineers (NACE), and LAC’s experience, will be compared to the actual processes utilized within the Department. Any differences will be noted with specific opportunities identified and changes documented.

Opportunities for improvement may relate to streamlining and or reengineering processes, or the elimination of unnecessary steps. The current mission, vision, and goals will be compared to existing business processes and those of other successful benchmark agencies to determine alignment.

TASK 3.2 – WORK METHOD
A sample of (4-5) key activities within each group (i.e. Public works and Community Services) will be discussed by LAC with employees to determine crew size, equipment used, work method(s), quality of work, and productivity noted. Comparisons and opportunities for improvement will be identified, based on LAC’s experience, discussions with employees, and other agency data. This will include outlining specific activity work methods along with a flowchart of the work processes.

TASK 3.3 – RESOURCE AND ORGANIZATION EVALUATION
LAC will analyze historical activity frequencies or levels of service (LOS) using information collected in previous tasks. These LOS/frequencies will be compared from year to year, as well as with other comparable agencies and published benchmark data. 212

LA Consulting, Inc.© February 2022 Page 5 of 8 City of Orange, CA Further, LAC will review the operational structure versus actual day-to-day operations. Spans of control, staff mix, skills, and turnover, leave, and management parameters will be reviewed and benchmarked against other agencies, by work function.

TASK 3.4 – WORKLOAD AND PLAN
The procedures used by the City to develop annual maintenance budgets will be examined; including methodology for estimating work accomplished, annual labor hours, equipment resources, and average daily production using the information from previous tasks and discussions with maintenance employees, outlined in the baseline working paper.

This review will focus upon the relationship of funding to workload and will also cover sources of funding, allocation of the funds, the impact of funding and workload changes/constraints, and how maintenance expenditures are justified.

TASK 3.5 – TECHNOLOGY EVALUATION
LAC will review the City’s current databases, existing software platforms, and associated data models for all infrastructure and system operations as they relate to maintenance and operational functions. Technology, including wireless applications, GIS, GPS, and web-enabled capabilities, will be outlined. LAC will review the various inputs and outputs, developing an understanding of how the existing data is processed. A general logic flow will be developed that outlines the processes. LAC will also interview key employees who manage the databases.

LAC will outline the City’s current automated systems with operational functions, and any efforts needed to meet the desired system goals. Areas not covered, or that lack the desired results, will be documented.

End Product: Outline of current automated systems and functions and compared with desired system goals to identify effort needed to meet the goals.

TASK 3.6 – COMPARISON OF CURRENT PROCESSES TO 2001’s FINAL

REPORT RECOMMENDATIONS
In this subtask, LAC will perform a simplified evaluation of current processes, systems, and methods for the groups. LAC will compare these against recommendations made in LAC’s 2001 Final Report, and the changes that have occurred in operations and maintenance. Further, LAC will evaluate the status of each of the 2001 Final Report recommendations, documenting any efficiency and/or effectiveness impacts to operations.

End Product: Outline comparison between current operations and idealized ones and identify opportunities for further improvement.

TASK 4 – DOCUMENT AND PRESENT FINDINGS AND RECOMMENDATIONS The findings of Task 3 and related subtasks will be compiled, documented, and presented by LAC to the Review Committee and to all relevant supervisors and managers for review and further discussion. Findings and recommendations related to processes, methods, resources, and technology will cover all basic management functions from work planning, organization, directing and controlling, and improving, and will highlight best business practices.

After the presentations, the information will be assembled into the working paper and submitted to the Committee for further comment and input. Upon receiving comments from the Committee, 213

LA Consulting, Inc.© February 2022 Page 6 of 8 City of Orange, CA the findings and related baseline information will be used to outline a series of initial recommendations. LAC will present the initial recommendations to both the Committee and to all impacted supervisors and managers in a meeting. Using their feedback, a draft final report will be developed and submitted. The working paper produced during this task will provide the information necessary to document benefits. Input and guidance from the Review Committee and key operations staff will be encouraged during both the findings and recommendations presentations to assist LAC in further refining the recommended solutions.

End Product: Working paper that documents initial findings (5 - 10 pages). In addition, a draft report will be compiled and submitted.

TASK 5 – DOCUMENTED ACTION PLAN WITH RECOMMENDATIONS
The action plan working paper will be finalized after meeting with City staff and a draft final document will be submitted. After the presentation, input from the Review Committee will be encouraged to assist LAC in refining recommendations for further improvement.

After all input and feedback is considered related to the draft working paper, a final report (25-35 pages) will be submitted to the City. The report will include explicit recommendations that, when implemented, will further improve the effectiveness and efficiency of operations. Both short- and long-term benefits and costs will be estimated. The focus will be on working with the employees at all levels from management, supervisors, and line staff to develop a “play book” or action plan that will allow the City to continue to pursue continuous improvement in the new system.

The final report will include an executive summary, baseline, findings, and recommendations sections covering policy, operational, procedural, and organizational recommendations. All recommendations will be related to facts collected during the project and the documented successes of benchmark agencies. This process will ensure buy-in among employees of recommendations that can be implemented.

The final report will outline specific actions and configurations that should be established in the new system, along with any operations and business practice suggestions.

End Product: A final written report for system improvements that documents baseline operations, evaluation findings, and recommendations, along with a 4-5-page executive summary will be submitted.

TASK 6 – MONTHLY STATUS AND QUALITY CONTROL
Monthly status reports will be prepared for the City. These reports will include a listing of all the project tasks with a summary status and a percent complete for each task.

End Product: Monthly status report will be provided.

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PROPOSED SCHEDULE
This project is predicted to take three months yet could be influenced by the City’s participation.

If the project starts on February 21, 2022, the effort could be completed by May 9th, 2022, if the support criteria below are met.

SUPPORT
LAC’s successful process outlined in our scope along with our experience in various projects is based on considerable employee involvement. If the City is to adhere the schedule, the following must occur:

 Project Coordinators with some City background (i.e. Public Works and Community Services) in which LAC can schedule overall effort must be provided.  Staff must be made available for interviews.
 Assistance provided to schedule meetings, presentations locations, yards, etc.  Documents requested must be produced within seven working days of the request.  Provide data and upload in electronic formats to expedite the process.  The documents produced by LAC must be reviewed by the City in less than seven working days.
 Provide relevant input with corresponding support data for working papers used for data collection.
 Staff must be available for meetings and follow-up within a two weeks’ notice and make attempt to schedule with one week.
 Coordination must occur for joint meeting dates and onsite reviews between the two coordinators to eliminate redundant effort and communication.

PROPOSED COST

LAC is comfortable estimating the cost by task in a lump sum costing basis, having done similar projects. Our experience in this type of effort and our knowledge of the area allows us to use our experience to make these estimates. As shown in the figure below, the total cost for the six tasks is $47,565.

This is a challenging assignment, and LAC has the capabilities and necessary resources to ensure a successful project with real and achievable short and long term recommendations outlined.

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Agenda Item
City Council
Item #: 3.9. 3/8/2022 File #: 22-0064
TO: Honorable Mayor and Members of the City Council
THRU: Tom Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Agreement with Azarvand’sBuilding Department Services LLC for Building and Safety plan review services.

2. SUMMARY
The City currently has an agreement with Azarvand’sBuilding Department Services LLC, for plan review services for the City for an amount not to exceed $30,000. The amount of the original agreement has been expended. The proposed First Amendment will increase the agreement amount by $60,000 for a total amount not to exceed $90,000. These additional funds will cover the costs of services for the remainder of the fiscal year.

3. RECOMMENDED ACTION

1. Approve a First Amendment to Professional Services Agreement with Azarvand’s Building Department Services LLC, in the amount of $60,000; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $60,000 from the General Fund to expenditure account number 100.5013.51670.00000, Other Professional & Consulting Services.

4. FISCAL IMPACT
The total expenditure for this agreement is $60,000 and will be funded through general fund (100).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
d: Assure the development of the City occurs in a fashion that maximizes public safety.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
Due to increased property development activities for both residential and commercial areas, the plan check workload has been increasing and additional consultant services are needed to reduce plan check delays and meet customer’s expectations. To improve customer service levels, the City developed an agreement with Azarvard’sBuilding Department Services LLC to supplement our in- house plan check capabilities. The original agreement established on September 2, 2021 was for a total of $30,000. These funds have been expended and additional funding is needed to allow the City of Orange Printed on 3/3/2022Page 1 of 2
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total of $30,000. These funds have been expended and additional funding is needed to allow the City’sBuilding and Safety Services to maintain adequate turnarounds for plan reviews through the end of this fiscal year.

The persistent elevated development activity within the City has made it hard to meet plan check deadlines without additional consultant support. Azarvant’s Building Department Services LLC is familiar with both the City’splan check process and operations, and has been very good in providing additional support. This Amendment will help the City’seffort in reducing any plan check backlog and will assist in maintaining consistency and flexibility in our plan check operations.

7. ATTACHMENTS
· First Amendment
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Agenda Item
City Council
Item #: 3.9. 3/8/2022 File #: 22-0064
TO: Honorable Mayor and Members of the City Council
THRU: Tom Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Agreement with Azarvand’sBuilding Department Services LLC for Building and Safety plan review services.

3. RECOMMENDED ACTION

1. Approve a First Amendment to Professional Services Agreement with Azarvand’s Building Department Services LLC, in the amount of $60,000; and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $60,000 from the General Fund to expenditure account number 100.5013.51670.00000, Other Professional & Consulting Services.

4. FISCAL IMPACT
The total expenditure for this agreement is $60,000 and will be funded through general fund (100).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
d: Assure the development of the City occurs in a fashion that maximizes public safety.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
Due to increased property development activities for both residential and commercial areas, the plan check workload has been increasing and additional consultant services are needed to reduce plan check delays and meet customer’s expectations. To improve customer service levels, the City developed an agreement with Azarvard’sBuilding Department Services LLC to supplement our in- house plan check capabilities. The original agreement established on September 2, 2021 was for a total of $30,000. These funds have been expended and additional funding is needed to allow the City of Orange Printed on 3/3/2022Page 1 of 2
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total of $30,000. These funds have been expended and additional funding is needed to allow the City’sBuilding and Safety Services to maintain adequate turnarounds for plan reviews through the end of this fiscal year.

7. ATTACHMENTS
· First Amendment
City of Orange Printed on 3/3/2022Page 2 of 2
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FIRST AMENDMENT
TO

PROFESSIONAL SERVICES AGREEMENT
[Plan Review Services]

THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (the “First Amendment”) is made and entered into as of __________________, 2022, by and between the CITY OF ORANGE, a municipal corporation ( “City”), and AZARVAND’S BUILDING DEPARTMENT SERVICES LLC, a California limited liability company (“Contractor”), with reference to the following:

A. City and Contractor entered into a Professional Services Agreement (Agreement No. AGR-7255) dated as of September 2, 2021, which is incorporated herein by this reference (the “Original Agreement”); and

B. City and Contractor desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement by increasing the compensation.

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

Section 2. Cross-References. City and Contractor agree that all references in this First Amendment are deemed and construed to refer to the Original Agreement, as implemented by this First Amendment.

Section 3 Compensation. The total not -to-exceed compensation for the services to be rendered as set forth in Section 2.a of the Original Agreement is increased by SIXTY THOUSAND DOLLARS and 00/100 ($ 60,000.00) and Section 2.a is hereby amende d in its entirety to read as follows:

“Contractor's total compensation for all services performed under this Agreement, shall not exceed NINETY THOUSAND DOLLARS and 00/100 ($ 90,000.00) without the prior written authorization of City.”

Section 4. Integration. This First Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency betw een the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.

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2 IN WITNESS of this First Amendment, the parties enter into this First Amendment on the year and day first above written.

“CONTRACTOR” “CITY”

AZARVAND’S BUILDING DEPARTMENT CITY OF ORANGE, a municipal corporation SERVICES LLC, a California limited liability
company
By:

Mark A. Murphy, Mayor
*By:

Printed Name:

Title:

ATTEST:

*By:

Printed Name:

Title: Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

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Agenda Item
City Council
Item #: 3.10. 3/8/2022 File #: 22-0070
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Agreement with Yunex, LLC for On-Call Signal and Lighting Emergency Repair Services.

2. SUMMARY
The City is currently in the second year of a three-year agreement with Yunex, LLC, for an amount not-to-exceed $240,000. During this time, the City has experienced copper wire theft that continues to result in street light outages and the need for emergency repairs. The contract capacity needs to be increased by $300,000 to accommodate additional expenditures.

3. RECOMMENDED ACTION
Approve the First Amendment to Agreement with Yunex, LLC for On-Call Signal and Lighting Emergency Repair Services, and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this First Amendment is $300,000 and will be funded in Capital Projects (500) through Minor Traffic Control Devices (16302).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
B: Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
Subsequent to a competitive procurement, the City entered into an Agreement with Siemens Mobility Inc. (now Yunex, LLC,) in August 2020, to provide emergency signal and lighting repair services as needed. The Agreement is for an initial term of three years and an amount not-to-exceed $240,000.

Contained within is an optional extension which authorizes the City Manager to extend the Agreement for an additional two years and an amount not-to-exceed $160,000. Staff has not yet exercised the option to extend, as doing so would be premature since the initial term does not expire for another 18 months.

Unrelated to any future extension is the immediate need to increase the Agreement’scapacity by $300,000 during the initial term. This increase is necessary to cover unexpected expenditures (both actual and projected) associated with repairs that are due to recent and continuing copper wire thefts.

If approved, the Agreement would be amended to reflect a not-to-exceed amount of $540,000 (the City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.10. 3/8/2022 File #: 22-0070
If approved, the Agreement would be amended to reflect a not-to-exceed amount of $540,000 (the original $240,000 plus the additional $300,000) for the current three-year term. The optional two- year extension would be preserved and considered at the appropriate time.

From time to time, many municipalities must confront copper street light wire thefts. While the problem can be chronic in the case of certain metropolitan areas, Orange has been largely unaffected for the past decade. Rather, local occurrences are expected to be episodic, occurring in waves for many months at a time. This particular wave began last summer as the price of commodities, including recycled copper, has risen to a level that encourages these activities. Public Works staff have been reporting all wire theft activities to the Police Department, and responding to follow-up requests for information that may ultimately lead to prevention and prosecution of related crimes. Staff have also begun to explore methods for securing the lighting infrastructure, including fortified utility boxes. However, because the thefts have been occurring at random locations, the City would have to fortify all of its street lighting infrastructure city-wide to ensure that areas being targeted by thieves are protected. Doing so requires capital investment that far exceeds the cost of wire replacement.

No budget appropriation is being requested at this time. Funding for the amendment is already available through one of the City’smaintenance-type capital projects, Minor Traffic Control Devices (16302), which includes $150,000 appropriated as part of the FY 2022 mid-year budget adjustment.

The remaining $150,000 will be requested in increments, as part of the budget approval process and, if necessary, budget adjustment process for FY 2023. If the cessation of wire theft renders future budget requests unnecessary, a portion of the contract capacity added by this Amendment would remain unused.

7. ATTACHMENTS
· First Amendment
· Agreement with Siemens Mobility, Inc.
· Transfer to Yunex, LLC
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Agenda Item
City Council
Item #: 3.10. 3/8/2022 File #: 22-0070
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
First Amendment to Agreement with Yunex, LLC for On-Call Signal and Lighting Emergency Repair Services.

4. FISCAL IMPACT
The total expenditure for this First Amendment is $300,000 and will be funded in Capital Projects (500) through Minor Traffic Control Devices (16302).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
B: Provide and maintain infrastructure necessary to ensure the safety of the public.

If approved, the Agreement would be amended to reflect a not-to-exceed amount of $540,000 (the City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.10. 3/8/2022 File #: 22-0070
If approved, the Agreement would be amended to reflect a not-to-exceed amount of $540,000 (the original $240,000 plus the additional $300,000) for the current three-year term. The optional two- year extension would be preserved and considered at the appropriate time.

7. ATTACHMENTS
· First Amendment
· Agreement with Siemens Mobility, Inc.
· Transfer to Yunex, LLC
City of Orange Printed on 3/3/2022Page 2 of 2
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226

FIRST AMENDMENT
TO

PROFESSIONAL SERVICES AGREEMENT
[On-Call Signal and Lighting Emergency Repair Services]

THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (the “First Amendment”) is made and entered into as of ________________, 20 22, by and between the CITY OF ORANGE, a municipal corporation ( “City”), and YUNEX LLC, a Delaware corporation (“Contractor”), with reference to the following:

A. City and Contractor entered into a Professional Services Agreement (Agreement No. 7017) dated August 11, 2020, which is incorporated herein by this reference (the “Original Agreement”); and

B. On September 15, 2021, City agreed to the assignment of the Original Agreement to Yunex LLC (Agreement No. 7017A); and

B. City and Contractor desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement by increasing the compensation.

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

Section 2. Cross-References. City and Contractor agree that all references in this First Amendment are deemed and construed to refer to the Original Agreement, as implemented by this First Amendment.

Section 3 Compensation. The total not -to-exceed compensation for the services to be rendered as set forth in Section 2.a of the Original Agreement is increased by THREE HUNDRED THOUSAND DOLLARS and 00/100 ($300,000.00) and Section 2.a is hereby amended in its entirety to read as follows:

“Contractor's total compensation for all services performed under this Agreement, shall not exceed FIVE HUNDRED FORTY THOUSAND DOLLARS and 00/100 ($540,000.00) without the prior written authorization of City.”

Section 4. Integration. This First Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the ter ms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.

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2 IN WITNESS of this First Amendment, the parties enter into this First Amendment on the year and day first above written.

“CONTRACTOR” “CITY”

YUNEX LLC, a Delaware corporation CITY OF ORANGE, a municipal corporation

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

*NOTE: If Contractor is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution , certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

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243
Agenda Item
City Council
Item #: 3.11. 3/8/2022 File #: 22-0059
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Susan Galvan, Interim Community Development Director

1. SUBJECT
Second Amendment to Agreement with Sagecrest Planning and Environmental for planning staffing services.

2. SUMMARY
The City currently has an agreement with Sagecrest Planning and Environmental for planning staffing services. The proposed Second Amendment will increase the not-to-exceed amount by $110,000, for a total amount not-to-exceed $140,000.

3. RECOMMENDED ACTION
Approve the second amendment to agreement with Sagecrest Planning and Environmental for planning staff services; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this amendment is $110,000 and will be funded through General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
Sagecrest Planning and Environmental (Sagecrest) provides environmental review and robust planning staff services to local jurisdictions. As part of those services, Sagecrest offers staff of various backgrounds and expertise to perform services that include the processing, preparation and review of planning documents, zoning codes, project management, and specific plans.

Since 2017, Sagecrest has provided minute-taker staffing services for the Community Development Department. The minute taker is responsible for attending and taking minutes at the Planning Commission (PC) and Design Review Committee (DRC) meetings. By contracting out this activity, the City has realized salary savings over the years.

In January 2022,the Department expanded the scope of work with Sagecrest to include planning staff services to backfill vacant positions in the Planning Division, while recruitment is ongoing. This proposal is to increase compensation to cover the cost of contract planning staff through the end of the fiscal year in order to maintain a high level of customer service and continue to meet customer City of Orange Printed on 3/3/2022Page 1 of 2
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the fiscal year in order to maintain a high level of customer service and continue to meet customer and organizational expectations of timely application processing. Salary savings from the vacant planning positions will be used to fund the contract.

7. ATTACHMENT
· Second Amendment to Agreement with Sagecrest Planning and Environmental City of Orange Printed on 3/3/2022Page 2 of 2
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Agenda Item
City Council
Item #: 3.11. 3/8/2022 File #: 22-0059
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Susan Galvan, Interim Community Development Director

1. SUBJECT
Second Amendment to Agreement with Sagecrest Planning and Environmental for planning staffing services.

4. FISCAL IMPACT
The total expenditure for this amendment is $110,000 and will be funded through General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

In January 2022,the Department expanded the scope of work with Sagecrest to include planning staff services to backfill vacant positions in the Planning Division, while recruitment is ongoing. This proposal is to increase compensation to cover the cost of contract planning staff through the end of the fiscal year in order to maintain a high level of customer service and continue to meet customer City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.11. 3/8/2022 File #: 22-0059
the fiscal year in order to maintain a high level of customer service and continue to meet customer and organizational expectations of timely application processing. Salary savings from the vacant planning positions will be used to fund the contract.

7. ATTACHMENT
· Second Amendment to Agreement with Sagecrest Planning and Environmental City of Orange Printed on 3/3/2022Page 2 of 2
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SECOND AMENDMENT
TO

PROFESSIONAL SERVICES AGREEMENT
[Staffing Services – Minute Clerk, Planning Aide and Associate Planner]

THIS SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (the “Second Amendment”) is made and entered into as of ________________, 2022, by and between the CITY OF ORANGE, a municipal corporation ( “City”), and SAGECREST PLANNING AND ENVIRONMENTAL, a California corporation (“Contractor”), with reference to the following:

A. City and Contractor entered into a Professional Services Agreement (Agreement No. 6952.B) dated November 16, 2021 , which is incorporated herein by this reference (the “Original Agreement”); and

B. City and Contractor amended the Original Agreement to increase the compensation by a First Amendment to Professional Services Agreement (Agreement No. 6952.B.1) dated January 12, 2022, which is incorporated herein by this reference (the “First Amendment”); and

C. City and Contractor desire to further amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement to increase the compensation.

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

Section 2. Cross-References. City and Contractor agree that all references in this Second Amendment are deemed and construed to refer to the Original Agreement, as implemented by this Second Amendment.

Section 3 Compensation. The total not -to-exceed compensation for the services to be rendered as set forth in Section 2.a of the Original Agreement is increased by ONE HUNDRED TEN THOUSAND DOLLARS and 00/100 ($110,000.00) and Section 2.a is hereby amended in its entirety to read as follows:

“Contractor's total compensation for all services performed under this Agreement, shall not exceed ONE HUNDRED FORTY THOUSAND DOLLARS and 00 /100 ($140,000.00) without the prior written authorization of City.”

Section 4. Integration. This Second Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this Second Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this Second Amendment shall control and govern the rights and obligations of the parties.
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IN WITNESS of this Second Amendment, the parties enter into this Second Amendment on the year and day first above written.

“CONTRACTOR” “CITY”

SAGECREST PLANNING AND CITY OF ORANGE, a municipal corporation ENVIRONMENTAL, a California corporation

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

*NOTE: If CONTRACTOR is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice -President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If o nly one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution , certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. 249

27128 Paseo Espada • Suite 1524 • San Juan Capistrano, CA 92675 December 21, 2021

City of Orange
Attn: Anna Pehoushek, AICP, Assistant Community Development Director 300 E. Chapman Avenue
Orange, CA 92866

SUBJECT: City of Orange Contract Staffing Services- Scope of Work

Dear Ms. Pehoushek:

Thank you for the opportunity to submit a proposal in response to the City of Orange’s (City’s) request for planning and administrative consulting services. The team at Sagecrest Planning+Environmental (Sagecrest) provides planning and environmental review services to local jurisdictions throughout California. Our planners have expertise in discretionary case processing, preparation and review of zoning codes, specific plans, general plans, and other planning documents, code compliance, project management, and environmental analysis, documentation, and review. Our planners have all worked in various positions for local jurisdictions.

Sagecrest delivers the highest level of service with proactive solutions, ongoing communication and dependable coordination. We adapt our services to the City’s needs and complement its in-house resources as an extension of City staff. Our planners are trained on the latest planning, zoning and environmental legislation and case law and are adept at using public counter permit tracking and GIS systems.

Sagecrest is a local Southern California-based firm with corporate offices in San Juan Capistrano. Our clients are located in Orange, San Diego, Riverside, San Bernardino and Los Angeles Counties, which allows us to be accessible to our clients at a moment’s notice. We are accustomed to being proactive and anticipating the needs of our clients and recommending practical solutions to complex planning issues. In addition, due to our efficient structure, we are competitive on price while adhering to stringent budgets and schedules.

Sagecrest looks forward to your favorable review of our firm’s proposal. For additional information or to further discuss our qualifications, please contact me directly at the phone numbers or email below.

Sincerely,

Amy Vazquez, President
Office: (714) 783-1863 x705
Mobile: (714) 914-5605
E-mail: [email protected]

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Project Approach
Sagecrest’s approach to providing planning and administrative services, including representative tasks as appropriate for the class title assigned, is described below:

Review, analyze and process
discretionary case s consistent
with City codes, policies and
standards. Utilize City
electronic and paper files to
research previous and/or
related cases.

Sagecrest provides entitlement processing services for
development applications and management of City-initiated projects that may require general plan amendments, specific plans, reclassifications, Conditional Use Permits, subdivision maps, variances, design review, annexations, and other discretionary and administrative actions. Sagecrest planners are skilled project managers who provide excellent customer service to the applicant and the City. We guide the applicant through the entitlement process, timelines, technical studies, interdepartmental comments, revisions to the application, and the review and approval process. Team members utilize the
City’s historical files,
Geographic Information Systems, permit tracking software, and zoning code to respond to inquiries at the public counter and to research entitlements.

Prepare environmental
analysis, including, but not
limited to, Initial Studies and
Negative Declarations, as
required by the California
Environmental Quality Act
(CEQA).

Sagecrest planners are well versed in current environmental law and preparing CEQA documents for discretionary projects or City- initiated plans and programs. The Sagecrest team includes planners who can prepare streamlining checklists, Initial Studies, (Mitigated) Negative Declarations, EIRs, Mitigation Monitoring and Reporting Programs, and all required CEQA notices. Sagecrest planners have also managed CEQA consultant teams. We have reviewed and commented on numerous CEQA documents from
outside agencies to ensure
the City’s comments and concerns
are represented. Christine Saunders, Principal, previously served as the CEQA planner for the City of Anaheim and provides CEQA technical support to the entire Sagecrest team.

Route plans to City
departments; consolidate
comments; and present
recommendations and
revisions to the applicant.

Work with other departments
to ensure consistency of
comments. Prepare staff
reports and presentations to
citizen committees and
decision-making bodies.

Sagecrest planners are experienced project managers.

Entitlement case processing generally entails routing plans to various City departments; consolidating comments; resolving internal inconsistencies; and presenting recommendations and revisions to the applicant. Once the application is complete, our planners will write clear, concise, and accurate staff reports and manage the project through public outreach, reviews and approvals by staff, Planning Commission, any other required approval body, and the City Council.

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Maintain communication with
applicants, interested parties,
property owners, homeowner
associations, etc. Respond to
inquiries about projects from
residents and applicants.

Sagecrest takes pride in our communication and customer service with applicants, interested parties, property owners, homeowner associations, various governmental agencies, and other City departments. Our planners quickly learn the frequently asked questions (i.e. business license, special events, building inspection requests, etc.) and provide “one-stop shopping” at the public counter.

Prepare notices for public
meetings and hearings in
accordance with City and
CEQA requirements.

Sagecrest understands the importance of preparing timely, clear, concise and accurate public notices. We are experienced in preparing publications for the newspaper, posting on and/or near the project site and mailing notices to interested parties who may be affected by a proposed action.

Attend community meetings
and public hearings, as
required, and present reports
to various Boards,
Commissions, and the City
Council.

Sagecrest planners have solid presentation skills and have presented entitlement applications and reports to city councils, commissions, and community groups. We are often
commended for the ability our staff has to take complex issues and present them in a way that is clear and concise. We are passionate about working with stakeholders to communicate the direction of the City early in the process so they understand what the goals are and how to be a part of the ultimate solution.

Open, maintain and close
electronic and paper files in
accordance with City
procedures.

Proper records management and organization is crucial. Our planners have all worked for public agencies and understand the importance of working diligently to maintain the public record, proper publications, filing, indexing, and safekeeping of all proceedings of the Planning Commission and City Council. We work with the City Clerk to ensure the public record is kept permanently and is set up for efficient retrieval.

Review grading and building
plans for consistency with
discretionary approvals and
environmental mitigation, if
applicable.

Plan checking is completed in accordance with conditions of approval associated with each discretionary approval and applicable codes, ordinances and standards adopted by the City. 252

Company Information
Sagecrest is an award winning, full service, professional planning firm providing contract planning, land use, and environmental consulting to public agencies throughout California. The American Planning Association (APA) recently awarded Sagecrest the 2018 Emerging Planning & Design Firm by the Orange Section and the 2019 Grassroots Initiative Award by the California State Chapter and the Orange Section.

With considerable experience in Southern California, the Sagecrest team has strong working relationships with key staff, applicants and public officials. Our mission is to provide outstanding service at competitive rates to the clients and communities we serve while adding value and making a positive impression with each assignment. Because of our extensive experience and focus on providing planning staff to public agencies, Sagecrest is uniquely qualified to deliver high-quality on-call services.

We have assembled an exceptional team of experienced planners and administrative services staff. Our staff has professional planning experience in the public sector, giving them a unique and thorough understanding of the processes and the challenges faced by planning departments. We employ highly qualified and experienced professionals whose skills, qualifications and previous responsibilities are a strong match to the needs of the City of Orange. We ensure this high level of quality by employing the following practices:
• City contract managers interview proposed staff before they are assigned. • Our staff has experience working for public agencies prior to working with us, allowing them to integrate seamlessly into department operations.
• We know that our reputation is our most valuable asset. With that in mind, we do not overcommit our staff and only accept work that our staff has the qualifications to perform. • Our staff maintains ongoing professional development and we provide extensive training in project management, land use law, California Environmental Quality Act (CEQA), writing and public presentation skills.
• We are based in San Juan Capistrano, maintain regular office hours, and are accessible as needed.
• We reliably meet departmental standards, including: deadlines, quality of work products, courtesy and accessibility, accuracy of reports and information given to the public, and responsiveness.
• We ensure we have a clear understanding of expectations and maintain consistent communication with our clients.
• We are committed to providing services that are cost effective while maintaining high standards of quality and productivity.

Provide staff at the public
information counter.

Our team members are skilled at reviewing a City’s historical files, zoning map, zoning code and other data and files to respond to inquiries at the public counter. Our planners are well versed in determining when a project is ready for plan submittal.

We quickly learn the frequently asked questions
(i.e. business
license, special events, building inspection request, etc.) that are typical to customers visiting City Hall to provide as much assistance as possible and help provide “one-stop
shopping” for questions and needs. We take pride in our exceptional customer service skills.

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The Sagecrest contact for this contract is:

Amy Vazquez, President
27128 Paseo Espada, Suite 1524
[email protected]
Office: (714) 783-1863 ext. 705
Mobile: (714) 914-5605

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Experience and References
The team at Sagecrest includes a collaboration of managing principals and staff who have extensive experience in performing work of a similar nature to that solicited in this request for services.

Assignment /
Project Description Term Location /
Client Client Contact
Contract Planning
Services
November 2017-
present
City of
Huntington
Beach
Jane James
Planning Manager
[email protected]
(714) 536-5271
Contract Planning
Services July 2017-present City of Santa Fe
Springs
Wayne Morrell
Director of Planning
[email protected]

(562) 868-0511
Contract Planning
Services
August 2017-July
2018
City of Newport
Beach
Jaime Murillo
Senior Planner
[email protected]
(949) 644-3209

Pricing

Classification/Title and Hourly Rates

Sagecrest will perform consulting services based on the following breakdown of classification of hourly rates for key personnel:

Position Hourly rate
Planning Director $200.00
City Planner $180.00
Principal Planner $140.00
Senior Planner $120.00
Associate Planner $100.00
Assistant Planner $80.00
Planning Aide $70.00
Minutes Clerk/Planning Administration $50.00

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Agenda Item
City Council
Item #: 3.12. 3/8/2022 File #: 22-0068
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Susan Galvan, Interim Community Development Director

1. SUBJECT
Second Amendment to Agreement with Michael Baker International for Community Development, HOME Investments and Partnerships Program, and special grant administration consulting services.

2. SUMMARY
The City currently has an agreement with Michael Baker International, Inc. to provide Community Block Grant and HOME Investments and Partnerships Program consulting services. The proposed Second Amendment will increase the not-to exceed amount by $120,000 for a total not-to-exceed of $200,000, and broaden the scope of work to include consulting services for special grant administration.

3. RECOMMENDED ACTION
Approve the Second Amendment to agreement with Michael Baker International, Inc. for Community Development Block Grant, HOME Investments and Partnerships Program, and general grant administration consulting services, and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this amendment is $120,000 and will be funded through the Community Development Block Grant Fund (310), Housing Grant Programs Fund (317), SB-2 Building Homes and Jobs Act Fund (312), Reimbursable Capital Projects Fund (550), and General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
On September 14, 2021, Council approved the First Amendment with Michael Baker International (MBI) to provide reporting, monitoring, and compliance support with the administration of grants received from the U.S. Department of Housing and Urban Development (HUD). The recurring annual grant allocations received from HUD include the Community Development Block Grant (CDBG) and the HOME Investments and Partnership Program (HOME). The CDBG Program is used to support decent housing and suitable environments through economic opportunities for low and moderate City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.12. 3/8/2022 File #: 22-0068
decent housing and suitable environments through economic opportunities for low and moderate income persons. The HOME program is used to implement local housing strategies designed to increase homeownership and affordable housing. MBI has provided key support for these programs while staff transitions the duties left by the former Housing Analyst’sretirement in July and assesses the restructure of the Housing Division.

Expanding on this proposal, a National Environmental Policy Act (NEPA) clearance is being included under HOME consulting services for the proposed Katella Terrace development project, an eligible expense under HOME funds. The project, a 74-unit affordable housing unit for seniors proposed at 1249 E. Katella Avenue, is requesting $200,000 in HOME funds and requires the NEPA clearance in order to qualify. Staff will be coming to Council to commit the HOME funds to the Katella Terrace development project at a later date.

Special Grant Assistance
MBI has been instrumental in assisting staff with reporting and compliance requirements for special purpose grants received from HUD, including the:
· Coronavirus Aid, Relief, and Economic Security (CARES) received for the preparation, prevention, and response to coronavirus. CARES funds to date have been used for business assistance and activities addressing homelessness.
· HOME American Rescue Plan (HOME-ARP) received for housing and continuum of care services for those experiencing homelessness. MBI will be assisting with the development of a plan for the use of funds that is HUD compliant.

Additionally, MBI is assisting with reporting and consulting on grants received from the California Department of Housing and Urban Development (HCD). Grants received from HCD include:
· SB2 Permanent Local Housing Allocation (PLHA) used to address homelessness. · Planning Grant Program (PGP) used for planning ordinance updates. · City Local Early Action Planning (LEAP) used for planning ordinance and specific plan updates.

Furthermore, MBI has experienced staff familiar with Successor Agency processes and activities related to housing. As such, MBI is providing consultation and training to ensure that reporting and compliance is accurate and timely.

Staff recommends approving the Second Amendment to the Agreement with MBI to assist with the management, reporting, and compliance of any HUD and HCD grants, as well as to advise on special grant administration, as grants become available. It is expected that the total cost of the consultant services with MBI will reduce as staff becomes more experienced and knowledgeable with the rules, regulations, and requirements of HUD, HCD, and Successor Agency.

7. ATTACHMENTS
· Second Amendment to Agreement with Michael Baker International, Inc.

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Agenda Item
City Council
Item #: 3.12. 3/8/2022 File #: 22-0068
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Susan Galvan, Interim Community Development Director

1. SUBJECT
Second Amendment to Agreement with Michael Baker International for Community Development, HOME Investments and Partnerships Program, and special grant administration consulting services.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
On September 14, 2021, Council approved the First Amendment with Michael Baker International (MBI) to provide reporting, monitoring, and compliance support with the administration of grants received from the U.S. Department of Housing and Urban Development (HUD). The recurring annual grant allocations received from HUD include the Community Development Block Grant (CDBG) and the HOME Investments and Partnership Program (HOME). The CDBG Program is used to support decent housing and suitable environments through economic opportunities for low and moderate City of Orange Printed on 3/3/2022Page 1 of 2
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Item #: 3.12. 3/8/2022 File #: 22-0068
decent housing and suitable environments through economic opportunities for low and moderate income persons. The HOME program is used to implement local housing strategies designed to increase homeownership and affordable housing. MBI has provided key support for these programs while staff transitions the duties left by the former Housing Analyst’sretirement in July and assesses the restructure of the Housing Division.

7. ATTACHMENTS
· Second Amendment to Agreement with Michael Baker International, Inc.

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SECOND AMENDMENT
TO

PROFESSIONAL SERVICES AGREEMENT
[CDBG/HOME Consultant Services]

THIS SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (the “Second Amendment”) is made and entered into as of ________________, 2022, by and between the CITY OF ORANGE, a municipal corporation (“City”), and MICHAEL BAKER INTERNATIONAL, INC., a Pennsylvania corporation (“Contractor”), with reference to the following:

A. City and Contractor entered into a Professional Services Agreement (Agreement No. 7233) dated August 9, 2021 , which is incorporated herein by this reference (the “Original Agreement”); and

B. City and Contractor amended the Original Agreement to increase the compensation by a First Amendment to Professional Services Agreement (Agreement No. 7233.1) dated September 14, 2021, which is incorporated herein by this reference (the “First Amendment”); and

C. City and Contractor desire to further amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement to revise the Scope of Services and increase the compensation.

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

Section 3 Revised Scope of Services. The Scope of Services, Section 1, Exhibit A of the Original Agreement, is hereby amended, modified and supplemented to include the services described in correspondence from C ontractor dated January 31, 2022 and February 3, 2022, attach hereto as Exhibit A and incorporated herein by this reference.

Section 4 Compensation. The total not -to-exceed compensation for the services to be rendered as set forth in Section 2.a of the Original Agreement is increased by ONE HUNDRED TWENTY THOUSAND DOLLARS and 00/100 ($120,000.00) and Section 2.a is hereby amended in its entirety to read as follows:

“Contractor's total compensation for all services performed under this Agreement, shall not exceed TWO HUNDRED THOUSAND DOLLARS and 00/100 ($ 200,000.00) without the prior written authorization of City.”
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2 Section 5. Integration. This Second Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the te rms and provisions of this Second Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this Second Amendment shall control and govern the rights and obligations of the parties.

IN WITNESS of this Second Amendment, the parties enter into this Second Amendment on the year and day first above written.

“CONTRACTOR” “CITY”

MICHAEL BAKER INTERNATIONAL, INC., CITY OF ORANGE, a municipal corporation a Pennsylvania corporation

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

*NOTE: If CONTRACTOR is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution , certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. 261

EXHIBIT “A”

SUPPLEMENTAL SCOPE OF SERVICES

[Behind this page.]

262

3760 Kilroy Airport Way, Suite 270 • Long Beach, CA 90806 • (562) 200-7173 1 | P a g e

February 3, 2022

Susan Galvan
Community Development Director

CITY OF ORANGE
300 E. Chapman Ave.

Orange, CA 92866

RE: Proposal for CDBG and HOME Program Administration Services

Dear Ms. Galvan,

Michael Baker International (Michael Baker) is pleased to submit this proposal to continue to provide General Grant Assistance to the City of Orange. It is our understanding, the City seeks continued support with CDBG and HOME program administration ( planning, program compliance, technical assistance, and ongoing financial reporting ). Assistance is also needed to develop and implement CV (CARES ACT) funded project s, HOME affordable housing program implementation and administration, HOME-ARP program administration, PLHA and Successor Agency matters, and staff development in the various grant administration processes.

Michael Baker has established sound practices and standard procedures to maintain a high level of accuracy and productivity in grant management . Our staff possesses over 30 years of grant management and public administration experience. Further, our staff regularly attends workshops and training sponsored by the Department of Housing and Urban Development and the State to remain current with changing regulations, principles, and procedures. Michael Baker staff members are well qualified to provide the services being requested by the City of Orange b ased on t heir educational background, career training, and work experience.

The Scope of Services is as follows:

1. General Federal Grant Assistance
a) Conduct monthly reviews of the City’s CDBG and HOME Program files to assess status and completeness. Take corrective actions as necessary.
b) Assist with the completion of monthly task items and ensure all are on track through end of fiscal year.
c) Assist with subrecipient oversight including reporting and billing. d) Provide technical assistance to staff with overall program administration. e) Provide assistance with CARES Act grant administration.

3. 2022-2023 Annual Action Plan
a) Prepare Annual Action Plan document
b) Prepare Public Notice
c) Attend public hearings as necessary
d) Upload Annual Action Plan to IDIS

4. Environmental Review Documents for approved projects for the 2022/23 Fiscal Year. a) Prepare NEPA reviews for public service projects and capital projects 263

3760 Kilroy Airport Way, Suite 270 • Long Beach, CA 90806 • (562) 200-7173 2 | P a g e

5. Program Compliance and Monitoring.
a) Conduct annual monitoring of CDBG and HOME Program subrecipients which include:

Fair Housing Program; After -School Community Program; Bike Team Program; Assistance League of Orange – Operation School Bell; and Friendly Center Inc. – Community Food Orange. This task will also include monitoring of the HOME Program.

6. Labor Compliance. Conduct monitoring services for compliance with HUD Section 3, Federal Davis-Bacon Act, and State of California Department of Industrial Relations’ requirements for approved projects which include: ADA Wheelchair Access Ramps; Beverly Neighborhood Improvements; and, Library Accessibility Improvements.

In addition to our full labor compliance monitoring and review services, Michael Baker can also provide optional services upon request at an additional fee to include:

• Prevailing Wage Determination
• Contractor Eligibility
• Pre-Construction Meeting Attendance
• Creation of a Labor Compliance
Welcome Package
• Certified Payroll Reporting
• Ensuring Apprenticeship Regulation
• LCP Tracking
• Site Visits and Interviews
• Labor Compliance Status Reporting
• Maintenance of Project Files
• Compliance Close-out

The Scope of Services for the HOME Program is as follows:

7. HOME Funded Affordable Housing Assistance

Assist staff with the administration of HOME affordable housing project implementation and reporting.

The Scope of Services for General Non Federal Grant Administration is as follows:

8. General Grant Assistance

Assist staff with technical assistance regarding the administration of Successor Agency matters, PLHA, State grant reporting and other non-Federal Grant items.

Fees
We have broken down the cost per task and can customize the proposal to reflect whichever combination of services the city would like to engage Michael Baker. if it differs from the proposed scope of services noted above . Please refer to page 3 for a breakdown of our current hourly fee schedule which is included as a part of this proposal.

CDBG Task Fee

1. General Federal Grant Assistance1 $33,610

3. 2022-23 Annual Action Plan $9,620

4. Environmental Review $2,200

5. Program Compliance and Monitoring $9,740

6. Labor Compliance $6,300
Total $61,470

1 Assumes 10 hours per week of Project Lead Time for term of contract. 264

3760 Kilroy Airport Way, Suite 270 • Long Beach, CA 90806 • (562) 200-7173 3 | P a g e
HOME Task Fee

7. HOME funded Affordable Housing Assistance $8,120
Total $8,120
Non-Federal Grant Task Fee

8. Non-Federal Grant Assistance $12,180
Total $12,180

We believe that the services being offered by Michael Baker will fulfill the City’s needs in an efficient, task-oriented, and cost -effective manner. We sincerely appreciate the opportunity to submit this proposal and look forward to continuing to assist the City of Orange. If you have any questions regarding this proposal, please contact Monika Troncoso , at (714) 403-4879, or [email protected].

Sincerely,

William Hoose, AICP
Associate Vice President
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•
•
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•
•
•
•
•
•
•
•
•
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1 United States Environmental Protection Agency, General Conformity: De Minimis Tables , https://www.epa.gov/general - conformity/de-minimis-tables, accessed January 26, 2022. 270
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a.
b.

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274
Agenda Item
City Council
Item #: 3.13. 3/8/2022 File #: 22-0123
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Second Amendment to Agreement with Iteris, Inc. for Traffic Engineering Services for Tustin Avenue/Rose Drive Corridor Regional Traffic Signal Synchronization Program Project.

2. SUMMARY
The Second Amendment authorizes Iteris, Inc. to provide additional traffic engineering services needed to comply with and implement the requirements of Tustin Avenue/Rose Drive Corridor, a Renewed Measure M2 Regional Traffic Signal Synchronization Program Project.

3. RECOMMENDED ACTION
Approve the second amendment to agreement with Iteris, Inc. for Traffic Engineering Services in an additional amount of $872,430; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this amendment is $872,430 and will be funded in Tustin Street Signal Synchronization (20425) through:

TSIP Citywide (287) $113,480
Reimbursable Capital Project (550)
Street Light/Signal Install-Tustin 697,944
Other Capital Outlay- Tustin St Sig (Other Agencies) 61,006 Reimbursement from Renewed Measure M2 (697,944)
Reimbursement from Partner Agencies (61,006)
Total: $113,480

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
Original Agreement and First Amendment
In September 2021, the City entered into an agreement with Iteris, Inc. (Iteris) to provide traffic engineering services to help City staff implement and deliver the Tustin Avenue/Rose Drive Corridor Regional Traffic Synchronization Program Project (Project). The Project is led by Orange, comprised City of Orange Printed on 3/3/2022Page 1 of 3
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Item #: 3.13. 3/8/2022 File #: 22-0123
Regional Traffic Synchronization Program Project (Project). The Project is led by Orange, comprised of six cities along the corridor, and funded primarily with Orange County Transportation Authority (OCTA) Measure M2 dollars. A First Amendment was executed in February 2022, reflecting minor additions to the scope of work. Said Amendment did not require increasing the original contract amount, as the cost of the added scope was well within the original contract contingency.

Second Amendment
This type of project (traffic signal synchronization and equipment upgrades) is categorically different from traditional public works construction since it disproportionally involves procurement and field integration of “plugand play”equipment. Because much of the necessary equipment has extremely long lead times and their procurement lies on the critical path for project delivery, many municipal agencies that lead similar projects often employ hybrid project delivery methods, including “design- build” or “advance procurement,” to minimize project delays. For more competitive pricing, staff recommends the latter in this particular case. Doing so will better enable the City to meet its project delivery obligations to OCTA and respect time constraints on project funding.

Advance procurement will significantly reduce time for construction mobilization and prevent extensive delays related to existing supply-chain shortages and long lead times for materials.

Moreover, this approach will eliminate the potential of contractor markups on materials and equipment, which can be as high as 20%. And, because all of the traffic signal equipment identified for advance procurement is single-sourced and a majority of that equipment is sole-sourced, there is no expected benefit to bid out this equipment with the project’sfuture construction work. The advance procurement approach for this project was discussed with and approved by the City Attorney’soffice; and requires a Second Amendment to the contract. All traffic signal equipment identified in the Second Amendment will be ordered by Iteris in accordance with the City’spurchasing requirements; and either installed by the respective manufacturers or the eventual construction contractor, depending on the nature of the work.

Also included in the Second Amendment is the implementation of Automated Traffic Signal Performance Measures (ATSPMs) for City of Orange intersections along the Project corridor. As identified in the Project’s original application to OCTA, the City intends to use ATSPMs to continuously collect data at its intersections to proactively identify and correct deficiencies in signal timing. Previous Traffic Signal Synchronization Program projects (TSSP) within the City have implemented ATSPMs using Iteris’SPM Service. Most recently, Iteris’SPM Service, selected for its user-friendliness and unique features, was installed at City intersections along Main Street and Katella Avenue. To maintain consistency with previous deployments throughout the City, Iteris’SPM Services will be implemented at 19 intersections along Tustin Street in Orange for a period of three years as part of this Project. Iteris’cost proposal for SPM Service falls within Project’sestimates for ATSPMs.

The original contract amount was not-to-exceed $1,183,975.10. The Second Amendment would increase the contract amount by $872,430, totaling not-to-exceed $2,056,405.10. Per the funding guidelines for this TSSP project, 80% of the Project cost is funded by OCTA Measure M2 dollars, with the remaining 20% being shared by the six participating cities. All applicable funds have already been appropriated.

7. ATTACHMENTS
· Second Amendment
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· Iteris Estimate
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Agenda Item
City Council
Item #: 3.13. 3/8/2022 File #: 22-0123
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Second Amendment to Agreement with Iteris, Inc. for Traffic Engineering Services for Tustin Avenue/Rose Drive Corridor Regional Traffic Signal Synchronization Program Project.

4. FISCAL IMPACT
The total expenditure for this amendment is $872,430 and will be funded in Tustin Street Signal Synchronization (20425) through:

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
Original Agreement and First Amendment
In September 2021, the City entered into an agreement with Iteris, Inc. (Iteris) to provide traffic engineering services to help City staff implement and deliver the Tustin Avenue/Rose Drive Corridor Regional Traffic Synchronization Program Project (Project). The Project is led by Orange, comprised City of Orange Printed on 3/3/2022Page 1 of 3
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Item #: 3.13. 3/8/2022 File #: 22-0123
Regional Traffic Synchronization Program Project (Project). The Project is led by Orange, comprised of six cities along the corridor, and funded primarily with Orange County Transportation Authority (OCTA) Measure M2 dollars. A First Amendment was executed in February 2022, reflecting minor additions to the scope of work. Said Amendment did not require increasing the original contract amount, as the cost of the added scope was well within the original contract contingency.

Advance procurement will significantly reduce time for construction mobilization and prevent extensive delays related to existing supply-chain shortages and long lead times for materials.

7. ATTACHMENTS
· Second Amendment
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Item #: 3.13. 3/8/2022 File #: 22-0123
· Iteris Estimate
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SECOND AMENDMENT
TO

PROFESSIONAL SERVICES AGREEMENT
[Traffic Engineering Services – RFP 20-21.40]

THIS SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (the “Second Amendment”) is made and entered into as of ________________, 2022, by and between the CITY OF ORANGE, a municipal corporation ( “City”), and ITERIS, INC., a Delaware corporation (“Contractor”), with reference to the following:

A. City and Contractor entered into a Professional Services Agreement (Agreement No. 7258) dated September 14, 2021 , which is incorporated herein by this reference (the “Original Agreement”); and

B. City and Contractor amended the Original Agreement to revise the Scope of Services by a First Amendment to Professional Services Agreement (Agreement No. 7258.1) dated February 24, 2022, which is incorporated herein by this reference (the “First Amendment”); and

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

Section 3 Revised Scope of Services. The Scope of Services, Section 1, Exhibit A of the Original Agreement, is hereby amended, modified and supplemented to include the services described on Exhibit A attached hereto and incorporated herein by this reference.

Section 4 Compensation. The total not -to-exceed compensation for the services to be rendered as set forth in Section 2.a of the Original Agreement is increased by EIGHT HUNDRED SEVENTY-TWO THOUSAND FOUR HUNDRED THIRTY DOLLARS and 00/100 ($872,430.00) and Section 2.a is hereby amended in its entirety to read as follows:

“Contractor's total compensation for all services performed under this Agreement, shall not exceed ONE MILLION NINE HUNDRED FORTY-EIGHT THOUSAND SEVEN HUNDRED SEVENTY-ONE DOLLARS and 00/100 ($1,948,771.00) without the prior written authorization of City.”
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2 Section 5. Integration. This Second Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency b etween the terms and provisions of this Second Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this Second Amendment shall control and govern the rights and obligations of the parties.

IN WITNESS of this Second Amendment, the parties enter into this Second Amendment on the year and day first above written.

“CONTRACTOR” “CITY”

ITERIS, INC., a Delaware corporation CITY OF ORANGE, a municipal corporation

*By: By:

Printed Name: Mark A. Murphy, Mayor Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary E. Binning
Senior Assistant City Attorney

*NOTE: If CONTRACTOR is a corporation, the City requires the following signature(s):
-- (1) the Chairman of the Board, the President or a Vice-President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR
-- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City.

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EXHIBIT “A”

SUPPLEMENTAL SCOPE OF SERVICES

[Behind this page.]

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Orange City CouncilMarch 8, 2022

Orange City Council
March 8, 2022