San Rafael City Council
January 18, 2022

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Consultants will need to provide their Prevailing Wage Policy if their participation on the project includes prevailing wage work. The policy will include information on the accounting treatment of delta base and delta fringe, and verify the accounting treatment is consistent every year. • DIR FAQ website
• DIR Wage Determination website
• Caltrans Prevailing Wage Interpretive Guidance
Non-A&E Consultants
Consultants other than A&E consultants may be selected using cost, cost and qualifications (best value) or other critical selection criteria. The procedures outlined in this chapter can be modified for selecting non-A&E consultants by adding a cost item to the contract proposal.

For more details on non-A&E consultants, see Section 10.3: Non-A&E Contracts of this chapter.

Selecting the Project
The LPA is responsible for selecting and initiating a federal-aid financed transportation project.

The decision to begin project development is influenced by the project needs, its acceptability, the timing of studies, financing, and construction. The LPA must identify the project’s objectives including the general level of improvement or service, operating standards, maximum cost and the target date for project completion before commencing any consultant selection process.

Subcontracted Services
The consultant is responsible for performing the work required under the contract in a manner acceptable to the LPA. The consultant’s organization and all associated consultants and subconsultants must be identified in the proposal. If the consultant wishes to use a subconsultant not specified in the proposal, prior written approval must be obtained from the LPA. The subcontract must contain all required provisions of the prime contract. All subawards must include adequate oversight, management, and administration of engineering and design related consultant services and be administered in accordance with State laws and procedures specified in 23 U.S.C.106(g)(4) and 2 CFR 200.331.

Organizational and Consultant Conflicts of Interest
In the procurement of contracts for engineering services by private consulting firms using federal-aid highway funds, LPAs must take all the steps necessary to prevent fraud, waste, and abuse. The LPA must develop and maintain a written code of conduct governing the performance of its employees (including the contract administrator) engaged in the award and administration of federal-aid highway funded contracts, including the prevention of conflicts of interest in accordance with 23 CFR 172.7(b)(4).

A conflict of interest occurs when a public official’s private interests and his or her public duties and responsibilities diverge or are not consistent. Conflicts of interest may be direct or indirect (e.g., as result of a personal or business relationship). The appearance of a conflict of interest should be avoided as an apparent conflict may undermine public trust if not sufficiently mitigated.

Federal Regulation Governing Conflict of Interest (23 CFR 172.7(b)(4)) requires that:
• LPA must maintain a written code of standards of conduct for employees engaged in the award and administration of engineering and design service contracts;

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• No contracting agency employee who participates in the procurement, management, or administration of federal funded contracts or subcontracts must have, directly or indirectly, any financial or other personal interest in connection with such contract or subcontract;
• No person or entity performing services for a contracting agency in connection with a federal funded project must have, directly or indirectly, any financial or other personal interest, other than employment or retention by the contracting agency, in any contract or subcontract in connection with such project;
• No person or entity performing services for a contracting agency in connection with a federal-aid highway funded project must have, directly or indirectly, any financial or other personal interest in any real property acquired for the project; • No contracting agency employees or agents must neither solicit nor accept gratuities, favors, or anything of monetary value from consultants, potential consultants, or parties to sub-agreements;
• LPA must disclose in writing any potential conflict of interest to FHWA.

Consultants Performing Work on Multiple Phases of Federal-aid Projects LPAs sometimes wish to hire the same consultant firm to perform construction engineering and/or inspection services on the same project on which the firm also performed design services. This can cause project delivery efficiencies, as the design firm is well-suited to verify that the project is being constructed in accordance with the design and can resolve issues related to the design on behalf of the contracting agency. However, this may also pose a potential conflict of interest if the firm has a vested financial interest in failing to disclose deficiencies in its design work product and seeks to insulate itself from pecuniary liability in subsequent phases of the project, such as minimizing or ignoring design errors and omissions, rather than serving the best interests of the contracting agency and the public. Procuring a different firm from the design firm to provide the construction engineering and/or inspection services provides another level of review and reduces the risk of, or potential for, a conflict of interest.

Although federal regulations do not expressly prohibit the same firm from providing services on subsequent phases, the LPAs are responsible for ensuring the public interest is maintained throughout the life of a project and that a conflict of interest, real or apparent, does not occur or is sufficiently mitigated by appropriate public agency controls. Prior to allowing a consulting firm to provide services on subsequent phases of the same project, the contracting agency must establish appropriate compensating controls in policies, procedures, practices, and other safeguards to ensure a conflict of interest does not occur in the procurement, management, and administration of consultant services.

When design and construction phase services are procured under a single solicitation, the selection of the consulting firm must be based on the overall qualifications to provide both design and construction phase services, which require different skill sets, experience, and resources. Procuring these services under different solicitations may result in selection of a more qualified firm to perform services in each phase, as the most qualified firm to perform design phase services may not be the most qualified firm to provide construction phase services. Similarly, the qualifications and capacity of a firm may change over time. As such, it may not be appropriate to contract with a consulting firm to provide construction phase services at the outset of a design phase, knowing that these services may not be needed for an

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extended period until the preconstruction phase of the project is complete and construction funding authorized. The contract with a consulting firm providing design phase services on a project may not be amended to include construction phase services unless the desired construction phase services were included within the original advertised scope of services and evaluation criteria of the solicitation from which a qualifications-based selection was conducted.

All consultants acting in a management support role must complete Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement (see Section

10.1.9: Miscellaneous Considerations in this chapter) and retain it in the LPA files.

Miscellaneous Considerations Authorization to Proceed
The Federal Highway Administration (FHWA) must give the LPA an Authorization to Proceed (E-76) with the work prior to performing of any work for which federal reimbursement is to be requested, (see the LAPM Chapter 3: Project Authorization). Eligible consultant contracts may be procured using local funds prior to receiving the E-76, but reimbursement is for work performed after the E-76 authorization date. If contract is procured using state or local funds, federal procedures must have been followed if seeking federal reimbursement. For state funded projects see Section 10.2: State-Only Funded A&E Contracts and LAPG Chapter 25: State Programs for Local Agency Projects, for guidance on when work may proceed.

Copies of the Authorization to Proceed and the consultant contract must be retained in the LPA project files for future audit.

10.1.2 Identifying & Defining a Need for Consultants
The need for a consultant is identified by comparing the project’s schedule and objectives with the LPA’s capabilities, its staff availability of the required expertise, and its funding resources. If the LPA does not have sufficient staff capabilities, it may solicit assistance from another agency, or use a qualified private consultant to perform the required work.

If the LPA determines that there is a need to solicit assistance from another LPA, or to use a consultant, the District Local Assistance Engineer (DLAE) should be notified if federal-aid funds are to be requested for the project segment to be contracted out.

Appointing the Contract Administrator
The Contract Administrator is responsible for ensuring the quality of consultant contract products or services. The Contract Administrator is appointed as soon as the need for consultant services is identified. The Contract Administrator is involved throughout the development of the selection process and the contract provisions, and in the administration of the consultant’s work. The Contract Administrator must be a qualified LPA employee or have staff that is qualified to ensure the consultant’s work is complete, accurate, and consistent with the terms and conditions of the consultant contract. On federal-aid contracts, the Contract Administrator or staff members must be a full-time employee and familiar with the work to be contracted out and the standards to be used. The Contract Administrator must also abide by the laws, regulations and policies required as part of accepting federal or state funding for their project. Non-compliance with the laws, regulations, and policies may result in loss of project funding.

The Contract Administrator’s duties are listed in 23 CFR 172.9(d)(1) and include:
• Contract negotiation, contract payment, and evaluation of compliance performance, and quality of services provided by the consultant;

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• Being familiar with the contract requirements, scope of services to be performed, and products to be produced by the consultant;
• Being familiar with the qualifications and responsibilities of the consultant’s staff and evaluating any requested changes in key personnel;
• Scheduling and attending progress and project review meetings, commensurate with the magnitude, complexity, and type of work, to ensure the work is progressing in accordance with established scope of work and schedule milestones; • Documenting contract monitoring activities and maintaining supporting contract records as specified in 2 CFR 200.333;
• Provides direction to ensure the proposed work is advertised properly; • Prepares and distributes the Request for Qualifications (RFQ), description of work, and Request for Proposals (RFP), if used;
• Prepares the draft contract;
• Arranges for preparation before an independent estimate of the value of the work to be contracted out;
• Ensures that the selection procedures are followed;
• Analyzes the selected/best-qualified consultant’s cost proposal; • Ensures contract audit and review procedure is followed; • Ensures that fee/profit negotiation is conducted and keeps records; • Serves as the LPA’s primary contact person for the successful consultant; • Monitors the consultant’s progress and provides direction; • Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the contract terms as well as the acceptability and progress of the consultant’s work;
• Identifies other LPA staff for the consultant to contact, if needed; • Closes out the contract at completion, by processing the final invoice; completing a mandatory consultant evaluation, and final DBE utilization reports (Exhibit 17-F: Final Report Utilization of Disadvantaged Business Enterprises (DBE) and First-Tier Subcontractors) or Exhibit 17-F1: Final Report-Utilization of Disadvantaged Business Enterprises (DBE) and First-Tier Subcontractors for On-Call Contracts.

Segmenting Consultant Work
Consultant services are most effective when consultant work is segmented appropriately. The extent of segmenting depends upon the type and complexity of the work. Combining preliminary engineering tasks with the preparation of the required environmental analysis is normally desirable. Preparing an Environmental Assessment (EA) or Environmental Impact Statement (EIS) is more than simply writing a report. Assessment and impact reports include preliminary engineering needed to analyze project alternatives and produce an engineering and planning assessment. Initial project studies include only as much traffic and engineering analysis of alternatives, as is needed to produce a sound EA or EIS (see LAPM Chapter 6 Environmental Procedures and Standard Environmental Reference (SER) Chapters 31: Environmental

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Assessment (EA)/Finding of No Significant Impact (FONSI) and Chapter 32: Environmental Impact Statement (EIS). Final design must not begin until NEPA environmental approval has been received if federal reimbursement is desired.

Refer to Figure 10-2: Segmenting Consultant Work below, which illustrates several satisfactory ways to segment consultant activities.

Figure 10-2: Segmenting Consultant Work
Specify Products to be Delivered
The Contract Administrator identifies the products and services to be delivered as a result of consultant contract work, and minimum qualification of consultant professionals and staff. These vary depending upon the type of projects and the phase of project development being addressed.

Scope of Consultant Work
The scope of work, which the contract must include, is a detailed description of the products or services the consultant is to provide. From a detailed scope of work, consultants respond to a project advertisement; determine personnel and time requirements; and develop a technical proposal. Therefore, the scope of work must be clear, concise, complete, and describe the deliverables, standards for design and other work, quality control measures, acceptance criteria and deadlines.

Title VI Assurances
Title VI Assurances Appendices A and E must be included in each consultant contract. Include Title VI Assurances Appendices B, C, and D if applicable. The consultant must include the Title VI Assurances Appendices A and E, and if applicable Appendices B, C, and D in all subcontracts to perform work under the contract. Include Title VI Assurances Appendices B, C, and D if applicable. Refer to Exhibit 10-R: A&E Boilerplate Agreement Language, Article XXXII Title VI Assurances.

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Non-Discrimination Clause
The Non-Discrimination Clause (Exhibit 10-R: A&E Boilerplate Agreement Language, Article XVI Non-Discrimination Clause and Statement of Compliance) must be included in each consultant contract. The consultant must include the non-discrimination and compliance provisions of the Non-Discrimination Clause in all subcontracts to perform work under the contract.

Disadvantaged Business Enterprise (DBE) Participation
When administering federal-aid projects, federal regulations (49 CFR, Part 26) require an LPA to comply with the DBE program, and take necessary steps to ensure that DBE firms have the opportunity to participate in the projects. Refer to Chapter 9: Civil Rights and Disadvantaged Business Enterprises for DBE requirements for A&E Consultant Contracts.

Estimated Cost of Consultant Work
An independent estimate for cost or price analysis is needed for all consultant contracts (23 CFR 172.7(a)(1)(v)(B)) to ensure that consultant services are obtained at a fair and reasonable price. The estimate must be prepared prior to opening the cost proposal from the top-ranked consultant, so the LPA has a cost comparison to evaluate the reasonableness of the consultant’s cost proposal. The estimate, which is specifically for the use of the LPA’s negotiating team, is to be kept confidential and maintained for records.

A good cost estimate can be prepared only if the scope of work is defined clearly. The scope of work must include a list of the products or services which the consultant is required to deliver, and a time schedule of when they must be delivered.

It should be stressed that all work to be derived from the consultant services, such as preliminary design, environmental or final design, must be clearly identified in the solicitation of consultant services (RFQ or RFP) and included in the cost estimate. The addition of work to the original scope by amendment should be avoided whenever possible. Contract modifications are required for any amendments to the terms of the existing contract that change the cost of the contract; significantly change the character, scope, complexity, or duration of the work; or significantly change the conditions under which the work is required to be performed.

Some of the costs estimating techniques are:

Analogous Estimating:

Analogous cost estimating is using the actual cost of a previous, similar contract as the basis for estimating the cost of the current contract. Analogous cost estimating is frequently used to estimate costs when there is a limited amount of detailed information about the project.

Analogous cost estimating is generally less accurate, and it is most reliable when previous projects are similar in fact, and not just in appearance, and it uses expert judgment.

Parametric Estimating:

Parametric estimating is a technique that uses statistical relationship between historical data and other variables to calculate a cost estimate for an activity resource. This technique can produce a higher level of accuracy depending upon the sophistication, as well as underlying resource quantity and the cost data. A cost example would involve multiplying the planned quantity of work by the historical cost per unit to obtain the estimated cost of the contract.

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Bottom-up Estimating:

This technique involves estimating the cost for individual work in the contract with the lowest level of detail. This detailed cost is then summarized or rolled up to determine a total cost of contract. Cost detail should include estimated hours per task, labor hourly cost for professional and non-professional classifications, subconsultant costs, other project direct costs, and profit.

Labor costs should be broken down to direct labor and indirect cost rates, if possible.

If more than one project or phase of work is to be developed within the consultant contract, separate cost estimates are required for each project or phase of work. Separate cost estimates are required for each milestone and portion of the work expected to be subcontracted.

For on-call (as-needed) contracts, the cost estimate/analysis should include at minimum, a historical analysis of annual needs for consultant work, professional labor cost and market analysis, and reasonable profit analysis.

Determine Type of Contract
Types of contracts to be used are described as follows:
• Project-specific contract is between the LPA and consultant for the performance of services and a defined scope of work related to a specific project or projects. • Multi-phase contract is a project-specific contract where the defined scope of work is divided into phases which may be negotiated and executed individually as the project progresses.
• On-call contract is a contract that may be utilized for a number of projects, under which task or work orders are issued on an as-needed basis, for an established contract period and maximum total contract dollar amount. On-call contracts are typically used when a specialized service of indefinite delivery or indefinite quantity is needed for a number of different projects, such as construction engineering, design, environmental analysis, traffic studies, geotechnical studies, and field surveying, etc. Many agencies use these contracts to address peaks in workload of in-house engineering staff and/or to perform a specialized service which the agency does not have. On-call contracts must specify a reasonable maximum length of contract, not to exceed 5 years, and a maximum total contract dollar amount (23 CFR 172). The maximum dollar amount for all contracts awarded under the solicitation must be stated in the solicitation. The maximum dollar amount is the aggregate of the on-call contracts anticipated to be awarded. For example, if the solicitation lists that up to 5 contracts may be awarded, the aggregate amount of these 5 contracts is the maximum contract dollar amount. Setting maximum amount on each on-call contract under a multiple on-call solicitation does not meet the intent of 23 CFR172. How many contracts are anticipated to be awarded must be stated in the solicitation. How task orders will be issued must be stated in the solicitation.

There are two options on how task orders must be awarded under multiple on-call contracts for the same type of service under the same solicitation:

1. Through an additional qualifications-based selection procedure also known as mini-RFP.
• Solicit task order to the multiple on-call consultants on the master on-call contracts

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o Master on-call contracts are contracts awarded to on-call consultants at the initial RFQ/RFP procurement process. o Solicitation may be informal, e.g. email, letter, etc.; documentation is required.
o Evaluation criteria must be included in the solicitation. The miniRFP contains evaluation criteria that matches the strengths of the qualified firms to the specifics of the known tasks, thereby selecting the most qualified firm for each task.
o The evaluation criteria can include:
i. availability of personnel,
ii. staff capabilities,
iii. DBE (10% or less of overall score); the overall DBE goal was established at the master on-call contract,
iv. completion of time,
v. experience of consultant
vi. specialized expertise, and past performance.
• Evaluate and rank proposals and select from the multiple on-call contracted consultants
o Recommend at least three panel members to evaluate and rank o Evaluate based on criteria in mini-RFP solicitation
• Negotiate and award to the on-call contracted consultant o The mini-RFP or the task order will be negotiated with first ranked firm from each competition. Task order (mini-RFP) cost will be based on wage rates established in the master on-call contract, and the time and deliverable requirements in the task order. • If only one proposal is received or there is an emergency, a NonCompetitive process must be justified, and an Exhibit 12-F must be documented and signed by the DLAE
• Awarding task order to the multiple on-call consultants on a rotational basis does not meet the intent of the qualifications-based selection • Exhibit 10-G must be used to track percentage of DBE per task order

2. Regional basis where each on-call consultant is contracted to a designated area.

To maintain the intent of the Brooks Act (40 USC 1101-1104) in promoting open competition and selection based on demonstrated competence and qualifications, oncall consultant contracts established through the RFQ process must meet the following requirements:
• Must define a general scope of work, complexity, and professional nature of services.
• Specify a task order procedure the LPA uses to procure project specific work under the contract.

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• Task order work performed after the master on-call contract has expired will result in the costs being ineligible for federal or state reimbursement. • If multiple consultants are to be selected and multiple on-call contracts awarded through a single solicitation for specific services, the number of consultants that may be selected or contracts that may be awarded must be identified. • Specify procurement procedures in the contracts the LPA will use to award/ execute task orders among the consultants:
o Either through an additional qualification-based selection process (see the Two-Step RFQ/RFQ process later in this chapter), OR o On regional basis whereby the region is divided into areas identified in the solicitation, and consultants are selected to provide on-call services for assigned areas only. The RFP may list multiple regions that allow consultants to crossover or be a “backup” to other consultants that for specifically documented reasons are not able to perform the work in their assigned region. Per 23 CFR 172.9 (a)(3)(B)(2), the “backup” option needs to be listed in the respective contracts.

An example of acceptable contract wording in multiple on-call contracts for the same type of service:
• “Agency has or will enter into three (3) task order contracts for performance of the Scope of Services identified in Exhibit “A”, including this Agreement (“CM Services Task Order Contracts”). The other CM Services Task Order Contracts are [identify other two contracts by agreement numbers and consultant firms].

The total amount payable by Agency for the CM Services Task Order Contracts must not exceed a cumulative maximum total value of Seven Million, Five Hundred Thousand Dollars ($7,500,000) (“NTE Sum”). It is understood and agreed that there is no guarantee, either expressed or implied that this dollar amount will be authorized under the CM Services Task Order Contracts through Task Orders. Each time a Task Order is awarded under any of the CM Services Task Order Contracts, the Agency must send written notification to Consultant and each of the other consultants entering into the CM Services Task Order Contracts. The notice must identify the total funds allocated under issued Task Orders, and the remaining unencumbered amount of the NTE Sum. Consultant acknowledges and agrees that Agency must not pay any amount under this Agreement that would exceed the NTE Sum, and Consultant must not enter into a Task Order that exceeds the NTE Sum.”
Determining the Project Schedule
The LPA develops a schedule for performance of work and completion of the project. The schedule must include sufficient time to allow for:
• Selecting the consultant;
• Developing the consultant contract;
• Completing the A&E consultant contract audit process;

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• Conducting meetings and project reviews.

Determine Method of Payment
The method of payment of contract must be specified. The following four methods are permitted under 23 CFR 172.9(b) depending on the scope of services to be performed:
• Cost-Plus-Fixed Fee (see Exhibit 10-H: Sample Cost Proposal, Example #1); • Cost Per Unit of Work (see Exhibit 10-H, Example #3); • Specific Rates of Compensation (see Exhibit 10-H, Example #2); • Lump Sum (see Exhibit 10-H, Example #1).

The method of payment to the consultant must be set forth in the original solicitation, contract, and in any contract modification thereto. A single contract may contain different payment methods as appropriate for compensation of different elements of work. Markups are not allowed on any of the four methods of payment.

The cost plus a percentage of cost and percentage of construction cost methods of payment must not be used. Both of these methods are explicitly prohibited by 23 CFR 172.9(b).

Cost-Plus-Fixed Fee
The consultant is reimbursed for costs incurred and receives an additional predetermined amount as a fixed fee (profit). Federal regulations require that profit be separately negotiated from contract costs. The determination of the amount of the fixed fee must take into account the size, complexity, duration, and degree of risk involved in the work. The fixed fee is not adjustable during the life of the contract. The fixed fee dollar amount must be clearly stated in the contract. See the DLA A&E website for a useful tool on Profit/Fee Determination.

This method of payment is appropriate when the extent, scope, complexity, character, or duration of work cannot be precisely predicted. The fixed fee limit applies to the total direct and indirect costs. Fixed fees in excess of 15 percent of the total direct labor and indirect costs of the contract may be justified only when exceptional circumstances exist. The contract must specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10-H: Sample Cost Proposal Example #1 and Exhibit 10-R: A&E Sample Contract Language, Article V, Option 1 in this chapter). The contract cost proposal must identify all key employees and/or classifications to be billed. New key employees and/or classifications must be approved by the LPA before they incur work on the contract or the costs can be questioned or disallowed. LPAs are not required to update the Exhibit 10-C: A&E Consultant Contract Database when new key employees and/or classification are added to a contract. For more details, reference Section 10.1.8. Completing the Project.

Cost Per Unit of Work
The consultant is paid based on specific item of work performed. The item of work must be similar, repetitious and measurable, such as a specific geotechnical investigation and material testing. This method of payment is appropriate when the cost per unit of work can be determined with reasonable accuracy in advance, but the extent or quantity of the work is indefinite. Contract payment provisions must specify what is included in the price to be paid for each item. Any item of work not identified in the contract cost proposal is not eligible for reimbursement. New items of work (those within the original scope of work only) must be

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amended into the contract before work is performed. The contract must also specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10-H, Example #3 and Exhibit 10-R, Article V Option 2).

Specified Rates of Compensation
The consultant is paid at an agreed and supported specific fixed hourly, daily, weekly or monthly rate, for each class of employee engaged directly in the work. Such rates of pay include the consultant’s estimated costs and net fee (profit). Federal regulations require that profit be separately negotiated from contract costs. The specific rates of compensation, except for an individual acting as a sole proprietor, are to include an hourly breakdown, direct salary costs, fringe benefits, indirect costs, and net fee. Other direct costs may be included, such as travel and equipment rentals, if not already captured in the indirect cost rate. Other direct costs regardless of amount are to be listed on the cost proposal.

This method of payment should only be used when it is not possible at the time of procurement to estimate the extent or the duration of the work, or to estimate costs with any reasonable degree of accuracy. This method should not be used for project specific contracts and is recommended for on-call contracts for specialized or support type services, such as construction engineering and inspection, where the consultant is not in direct control of the number of hours worked, and it also requires management and monitoring of the consultant’s level of effort and the classification of employees used to perform the contracted work. The contract must also specify a reasonable maximum length of contract period and a maximum total contract dollar amount (see Exhibit 10-H, Example #2 and Exhibit 10-R, Article V Option 3).

Lump Sum
The consultant performs the services stated in the contract for an agreed amount as compensation, including a net fee or profit. This method of payment is appropriate only if the extent, scope, complexity, character, duration, and risk of the work have been sufficiently defined to permit fair compensation to be determined and evaluated by all parties during negotiations (see Exhibit 10-H: Sample Cost Proposal, Example #1 and Exhibit 10-R: A&E Sample Contract Language, Article V: Option 4). Normally, a lump sum contract will be paid in full at end of the contract when completed. However, a lump sum contract can be negotiated with progress payment if feasible. The progress payment must be based on percent of work complete or completion of clearly defined milestones. The contract cost proposal must document the agreed upon progress payment and include the necessary milestones costs, or the percent work complete schedule.

Changes to Exhibit 10-H requiring resubmittal to Independent Office of Audits and Investigations for review:
• Consultant/subconsultant name change
• New participating subconsultant’s ICR
• Change in ICR rate
Since these changes require an amendment, the LPA is to update the Exhibit 10-C: A&E Consultant Contract Database.

A firm fixed price method of payment is not the same as lump sum. A firm fixed price contract must not be amended.

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10.1.3 A&E Consultant Audit and Review Process
This section outlines the audit and review process for A&E contracts that at any time use state or federal funds. All proposed A&E contracts and supporting documents are subject to audit or review by Caltrans’ Independent Office of Independent Office of Audits and Investigations (IOAI), other state audit organizations, or the federal government. Not all proposed contracts will be audited or reviewed; rather, they will be selected on a risk-based approach.

Applicable Standards
State and federal requirements listed below, and specific contract requirements, serve as the standards for audits and reviews performed.

LPAs, consultants, and subconsultants are responsible for complying with state, federal, and specific contract requirements. LPAs are responsible for determining the eligibility of costs to be reimbursed to consultants.

Applicable standards include, but are not limited to:
• Caltrans Local Assistance Procedures Manual (LAPM);
• State and Federal agreements between LPAs and Caltrans, (i.e. Master Agreements);
• Project Program Supplemental Agreements;
• 23 United States Code (U.S.C.), Section 112 – Letting of Contracts; • 40 U.S.C., Chapter 11: the Brooks Act;
• 23 CFR, Chapter 1, Part 172 - Procurement, Management, and Administration of Engineering and Design Related Services;
• 23 CFR, Chapter 1- Federal Highway Administration, Department of Transportation;
• 48 CFR, Federal Acquisition Regulation (FAR), Chapter 1, Part 31- Contract Cost Principles and Procedures;
• 48 CFR, Chapter 99 – Cost Accounting Standards (CAS), Subpart 9900; • 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
• United States Government Accountability Office, Government Auditing Standards - Generally Accepted Government Auditing Standards (GAGAS); • California Government Code sections 4525-4529; and
• Proposed contract terms and conditions.

See Section 10.1.11: References of this chapter for links to above referenced standards.

Audit Guidance Available
The American Association of State Highway and Transportation Officials, Uniform Audit & Accounting Guide (AASHTO Audit Guide), which is referred to frequently in this section, is a valuable tool to guide LPAs, consultants and Certified Public Accountants (CPA) through the requirements for establishing, and audits of FAR compliant Indirect Cost Rates (ICR). The AASHTO Audit Guide is used extensively as an industry guide in the audit and review process.

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LPAs may seek accounting assistance from internal audit staff and an independent CPA for compliance. The consultant may seek professional guidance in selecting its independent CPA. See also the AASHTO Audit Guide, Ch 2.5C. Selection of CPA Firm as Overhead Auditor for guidance in the selection process. Training is also offered by FHWA’s National Highway Institute (see https://www.nhi.fhwa.dot.gov/home.aspx). Courses offered include:
• Using the AASHTO Audit Guide for the Procurement and Administration of A&E Contracts (FHWA-NHI-231028)
• Using the AASHTO Audit Guide for the Development of A&E Consultant Indirect Cost Rates (FHWA- NHI-231029)
• Using the AASHTO Audit Guide for the Auditing and Oversight of A&E Consultant Indirect Cost Rates (FHWA-NHI-231030)
For training and additional information provided by Caltrans Local Assistance, visit the Caltrans Local Assistance Blog. For FHWA’s Q&A for ICRs and audits, and A&E related services, visit FHWA.

Allowable Costs
23 USC 112 (b)(2)(B) states that any A&E contract or subcontract awarded, whether funded in whole or in part with federal-aid highway funds in furtherance of highway construction projects, must be performed and audited in compliance with the Federal cost principles.

LPAs are required to perform a cost analysis to ensure all costs are allowable and in compliance with federal and state requirements and retain documentation of negotiation activities and resources. Hourly rate(s) for each key personnel and/or classification of employee(s) proposed in cost proposals must be reasonable for the work performed and actual, allowable, and allocable in accordance with the Federal cost principles. Costs must be allowable only if the cost is incurred and cost estimates included in negotiated prices are allowable in accordance with the federal and state regulations and procedures, and contract provisions. Examples of Cost Analysis Worksheets are provided at Exhibit 10-H1 through 4.

LPAs are required to apply Caltrans accepted consultant or subconsultant’s ICRs, to contracts. An ICR is valid for the one-year applicable accounting period accepted or audited by Caltrans. Consultants must update, on an annual basis, ICRs in accordance with the consultant’s annual accounting period and in compliance with the Federal cost principles.

For further guidance, refer to 23 CFR 172.11(b)(1). If the consultant is subject to Cost Accounting Standards (CAS), the consultant must use the applicable ICR for the contract.

A consultant’s accepted ICR for its one-year applicable accounting period must be applied to contracts; however, once an ICR is established for a contract, it may be extended beyond the one-year applicable period, through the duration of the specific contract, provided all concerned parties agree. Agreement to the extension of the one-year applicable period must not be a condition or qualification to be considered for the work or contract award. The contract must clearly specify the ICR period if it is beyond the one-year applicable period.

Consultants must account for costs appropriately and maintain records, including supporting documentation, adequate to demonstrate that costs claimed have been incurred, and are allowable, reasonable, and allocable to the contract, and comply with Federal cost principles.

IOAI and representatives of the Federal Government have the right to conduct an audit of all contract costs. If the costs are subsequently determined to be unallowable, these costs are subject to repayment. For further guidance, refer to 23 CFR 172 and 48 CFR 31.

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Generally, whenever LPAs, consultants and/or contractors are unable to provide requested documentation, it must be viewed that the services were either not performed or the costs not properly recorded. Retention of all documents is required as it reduces the possibility of audit findings and disallowed costs. For more references, refer to Applicable Standards in this chapter.

Safe Harbor Rate
Developing ICRs annually can place a significant burden on some small or new and emerging A&E consulting firms that lack financial sophistication to develop an ICR, as well as on other established A&E consulting firms that may not have previous experience with federally funded contracts for which an ICR would have been developed in compliance with Federal cost principles 48 CFR 31. This may create a barrier for otherwise eligible and qualified firms to compete for federally funded contracts.

To help alleviate and remove potential barriers, the Division of Local Assistance (DLA) has adopted Caltrans Division of Procurement and Contract’s (DPAC) Safe Harbor Rate (SHR) process and rates which took into account LPAs’ data. The SHR information and rates can be found at the following DLA A&E website: https://dot.ca.gov/programs/local-assistance/guidanceand-oversight/consultant-selection-procurement. To request information regarding the SHR methodology, email the DLA A&E branch at [email protected]. Eligible A&E consultant firms can choose to use the DLA SHR rate on new A&E contracts using federal-aid highway funds executed by LPAs in the State of California.

Use and application of the SHR by eligible firms provides reasonable assurance of consultant compliance with the Federal cost principles per 23 CFR 172.11(c)(2). A&E consulting firms approved to use the established SHR will have their accounting system evaluated for capabilities of accumulating and tracking direct labor for applying the SHR, as well as for billing other direct costs by contract, segregating indirect costs, etc.

Use of the SHR is voluntary on behalf of the A&E consulting firm and LPAs. LPAs have the discretion to determine certification of eligibility based on requirements shown on the following SHR certification form: Consultant Firm Certification of Eligibility and Certification of Financial Management System.

A&E consultant firms (prime and/or sub consultants) that have not had an ICR previously accepted by a cognizant agency may elect and request to use the SHR in a contract by submitting the completed SHR certification form, Consultant Firm Certification of Eligibility and Certification of Financial Management System, including the Questionnaire for Evaluating Consultant Firm’s Financial Management System section, and any other documents as needed.

This requirement is in addition to the A&E Consultant Audit and Review Process requirements described in this chapter.

It is the LPA’s responsibility to:
• Collect and screen all requests to use the safe harbor indirect cost rate. See SHR certification form, Consultant Firm Certification of Eligibility and Certification of Financial Management System, including the Questionnaire for Evaluating Consultant Firm’s Financial Management System section.

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• Submit all SHR documents to the Independent Office of Audits & Investigations (IOAI) as part of the A&E Consultant Financial Document Review Request (Exhibit 10-A) package.

The IOAI email address is: [email protected].

Requests to use the safe harbor indirect cost rate must be accepted/approved by IOAI before contracts are executed.

Approval or Acceptance of Indirect Cost Rates
Cognizant Letters of Approval
A cognizant approved ICR has been audited by a Cognizant agency (a State transportation agency of the State where the consultant's accounting and financial records are located or a State transportation agency to which cognizance for the particular indirect cost rate(s) of a consulting firm has been delegated or transferred to in writing by the State transportation agency where the consultant’s accounting and financial records are located) in accordance with generally accepted government auditing standards to test compliance with the requirements of the Federal cost principles (per 48 CFR 31) and the cognizant agency has either 1) issued an audit report of the consultant's indirect cost rate or 2) conducted a review of an audit report and related workpapers prepared by a certified public accountant and issued a letter of concurrence with the audited indirect cost rate(s). The cognizant agency approves the ICR and a cognizant approval letter is issued.

Caltrans Acceptance of Indirect Cost Rate
When the ICRs have not been established by a cognizant agency, Caltrans must perform an audit or review of a consultant’s and subconsultant’s ICR(s) to provide reasonable assurance of compliance with Federal cost principles.

An audit or review of the ICR may consist of one or more of the following:
• Perform a review to determine if the ICR was prepared in accordance with 23 CFR Part 172, and 48 CFR, Chapter 1, Part 31;
• Perform an audit to determine if the ICR was prepared in accordance with 23 CFR Part 172, and 48 CFR, Chapter 1, Part 31; and issue an audit report; • Review and accept an ICR audit report and related workpapers prepared by a CPA or another State Transportation Agency;
The outcome of an audit or review is for Caltrans to approve or accept the ICR so that it can be relied upon for future contracts with the consultant for a given one-year accounting period and for reliance by other contracting agencies using the same consultant. LPAs must ensure that only approved or accepted ICRs of consultants for the applicable one-year accounting period be applied to contracts, if rates are not under dispute. LPAs may check IOAI’s website for consultant’s approved or accepted ICRs. All approved or accepted ICRs are issued an Acceptance Identification (ID) number by IOAI that is posted to IOAI’s website. This ID number should be referenced on all future contracts that use the same fiscal year ICR. ICR can be fixed for the life of the contract in prior written document or annually updated. Once it has been updated, it must be annually updated and the most current fiscal year of ICR must be used.

ICRs that have not been accepted by Caltrans will not be eligible for indirect cost payment. An ICR approved by a cognizant agency may be used across states for the one-year applicable accounting period, but an ICR accepted by Caltrans may only be applied to A&E contracts with Caltrans or LPA contracts using pass-through Caltrans funding. LPAs include Cities, Counties,

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Metropolitan Planning Organization, Special Districts, and Regional Transportation Planning Agencies.

Financial Review Performed Prior to Contract Execution
All consultants, including prime and subconsultants, on a proposed contract with a dollar value equal to or greater than $150K are subject to an ICR financial review by IOAI. The financial documents required are detailed in Exhibit 10-A, A&E Consultant Financial Document Review Request Letter and Exhibit 10-A Checklist. IOAI will review the ICR financial documents to either accept or adjust the indirect cost rate prior to contract execution using a risk-based approach as dictated by factors that include but are not limited to:
• History of satisfactory performance and professional reputation of consultant; • Prior FAR compliant history and audit frequency;
• Experience of consultant with FAHP contracts;
• General responsiveness and responsibility;
• The approximate contract volume and dollar amount of all A&E contracts awarded to the consultant by Caltrans or an LPA in California within the last three calendar years;
• The number of states in which the consultant does business; • The type and complexity of the consultant’s accounting system; • The relevant professional experience of any CPA performing audits of the consultants indirect cost rate;
• Assessment of consultant’s internal control. Responses to internal control questionnaire, see AASHTO Audit Guide, Appendix B;
• For ICRs that have been adjusted by IOAI, the consultant must provide a revised cost proposal that reflects the adjusted ICR.

Local Public Agencies’ Responsibilities
LPAs are responsible for obtaining all required ICR supporting documentation from A&E prime consultants and sub-consultants as outlined in Exhibit 10-A: A&E Consultant Financial Document Review Request and the Exhibit 10-A-Checklist. LPAs are responsible for forwarding these documents to IOAI for review. LPAs are also required to ensure that IOAI has copies of the Exhibit 10-K: Consultant Certification of Contract Costs and Financial Management System and Exhibit 10-H: Cost Proposal for all consultants, both prime and sub-consultants. The ICR included in Exhibit 10-H must match the ICR included in the Exhibit 10-K and the consultant’s ICR schedule. The proposed ICR, however, can be lower than ICR in Exhibit 10-K and the consultant’s ICR schedule if the consultant elects to propose a lower ICR. For contracts spanning more than one year, LPAs are responsible for ensuring the Exhibit 10-K and cost proposals are updated annually unless all concerned parties agree to fix the ICR for the term of contract, and this is clearly specified in the contract. ICR updates are not required to IOAI if the ICR is fixed for the life of the contract. ICR’s are only reviewed for consultants that are being awarded a contract, not consultants on a shortlist or prequalified list.

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The Exhibit 10-H: Cost Proposal includes contract costs: direct salary or wage rates, fixed fees, other direct costs, indirect costs, total costs, and certification for the costs. LPAs must perform and retain documentation of activities and resources used to support that a cost analysis has been performed to establish that costs and elements were determined to be fair and reasonable in accordance with Federal cost principles.

All contract supporting documentation must be retained by the LPA in project files for the required retention period. Unsupported costs may be disallowed and required to be returned to Caltrans. Having proper documentation policy and procedures, trained staff and organized project files are essential for demonstrating that costs claimed and reimbursed have been incurred, are eligible, reasonable, allowable, and allocable to the contract and comply with Federal cost principles.

Contracts below $150,000 are not subject to the Caltrans Financial Document Review but LPAs are required to establish that all costs are in compliance with the Federal cost principles, 48 CFR, Chapter 1, Part 31, and other applicable requirements are met. All documents listed above and cost analysis documents are required to be retained in the project files to demonstrate compliance.

Instructions are provided in the Exhibit 10-A on the requirements for submitting a complete Financial Review packet. Financial packets can be e-mailed to:
[email protected].

Alternatively, if you do not have Internet access, you can mail Financial Review packets to:

Department of Transportation
Independent Office of Audits and Investigations
MS 2 Attention: External Audit Manager
P.O. Box 942874
Sacramento, CA 94274-0001
Consultants’ Responsibilities (Both prime consultants and subconsultants) A&E prime consultants and subconsultants in contract with LPAs using state or federal-aid highway funds should refer to Exhibit 10-A and the 10-A Checklist for the ICR financial documents required to be submitted to their LPA. Consultants must complete the “Annual Certification of Indirect Costs and Financial Management System” (Exhibit 10-K) that attests that the ICR rate proposed is in compliance with FAR (48 CFR, Chapter 1, Part 31) and that the consultant’s financial management system is adequate to accumulate and segregate, reasonable, allowable, and allocable direct and indirect project costs. The Exhibit 10-A and 10-K should be submitted to the LPA who will forward a copy to IOAI along with all other related and required financial documents. For all future contracts within a same fiscal year, the consultant needs to only provide a copy of the Exhibit 10-K to the LPA.

Consultants must follow all the federal, state, and contract requirements outlined above in the Section above, “Applicable Standards”. Each contracting consultant must ensure its ICR is not combined with any parent company’s or subsidiary’s ICR.

ICR schedules for both prime consultants and sub-consultants should be prepared using the accrual basis of accounting and be presented in compliance with the Federal cost principles.

Figure 10-3 at the end of this chapter provides an example of a Standard Indirect Cost Rate Schedule that consultants can use when preparing their own.

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For public works Prevailing Wage contracts, all workers must be paid the prevailing wage rate determined by the Director of the Department of Industrial Relations according to the type of work and location of the project: http://www.dir.ca.gov/Public-Works/PrevailingWage.html.

For guidance see Caltrans’ Prevailing Wage Interpretive Guidance and webinar on IOAI’s website.

When determined necessary, IOAI may request additional information, such as a labor distribution summary and Executive Compensation Analysis (ECA). A consultant’s labor distribution summary report is a labor expense report that detail all hours worked (paid and unpaid) for a fiscal year, wages earned, and benefits accrued by all the consultant’s employees. The labor summary report should include employee names, salaries, hourly rates, total hours worked segregated by direct hours, indirect hours, paid time off hours, and uncompensated hours and amounts.

An ECA is an evaluation by the consultant to determine the allowability and reasonableness of executive compensation in compliance with Federal cost principles and the AASHTO Audit Guide that can be based on either the National Compensation Matrix or independent compensation surveys.

Independent Office of Audits and Investigations’ Responsibilities After IOAI receives a consultant’s complete financial document packet (per Exhibit 10-A and Exhibit 10-A Checklist) from the LPA, IOAI will review the proposed ICR and supporting documents and notify LPAs in writing whether the proposed ICRs are accepted or adjusted.

Contracts will be executed after IOAI either accepts or adjusts the ICR and a revised final cost proposal (if applicable) is received. Correction of the final cost proposal, however, does NOT need to be cleared through Caltrans IOAI before executing the contract. An email notification from IOAI serves as documentation to support an accepted ICR.

Audits and Reviews to be Performed
After contract execution, a consultant’s ICR may be subject to further detailed review or audit by IOAI based on certain risk factors. Costs that are determined to be unallowable as a result of the review or audit will be subject to repayment.

Indirect Cost Rate Audits
During an ICR audit, IOAI or an independent CPA will examine the consultant’s proposed ICR for a one-year accounting period to ensure that unallowable costs have been removed from the indirect costs, that allowable costs have been correctly measured and properly charged and allocated, and that the ICR has been developed in accordance with the Federal cost principles (as specified in 23 U.S.C. Section 112(b)(2)(B), 23 CFR 172.11, 48 CFR 31 and other FAR and State requirements). As a result of the audit, the LPA will work with the consultant to adjust the ICR based on audit recommendations.

For guidance regarding the existing policies and procedures set forth in the federal regulations, and acceptable ICR schedules, refer to the AASHTO Audit Guide, Chapter 5, and Figure 10-3 Standard Indirect Cost Rate Schedule in this Chapter. There is also a review program at Appendix A which serves as a guide for CPAs and IOAI when performing ICR audits and can also be used as a resource for consultants when preparing for an ICR audit.

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CPA Workpaper Reviews
During a workpaper review of a CPA audit of an ICR, IOAI will review the CPA’s audit workpapers to determine whether to issue a Cognizant Letter of Approval for the ICR. The CPA Workpaper Review determines whether: (a) the CPA’s audit of the ICR was conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS), (b) the CPA adequately considered the auditee’s compliance with the Federal cost principles and related federal and state laws and regulations.

Chapter 11 of the AASHTO Audit Guide provides information to the CPA on the required audit disclosures.

IMPORTANT NOTE FOR CPAs: Contracts receiving state or federal funds are highly scrutinized. Materiality levels tend to be lower and more testing is required. GAGAS provides that auditors may find it appropriate to use lower materiality levels as compared with the materiality levels used in non-GAGAS audits because of the public accountability of government entities and entities receiving government funding, various legal and regulatory requirements, and the visibility and sensitivity of government programs. The AASHTO Audit Guide should be used as a tool for performing audits and attestations of A&E firms.

Contract Audits
During a Contract Audit, auditors will review a consultant’s financial management system and contract cost proposal to determine if:
• The consultants’ accounting system is adequate to accumulate and segregate costs; • Costs are reasonable, allowable, allocable and supported adequately; • The contract contains all required fiscal provisions; • Proper state and federal procurement requirements were followed.

Incurred Cost Audits
During an Incurred Cost Audit, auditors will review incurred contract costs to determine if:
• Cost data are maintained in an accounting system that adequately gathers, records, classifies, summarizes, and reports accurate and timely financial data for direct and indirect project costs by account;
• Costs are adequately supported, reasonable, allowable, and allocable; • Costs incurred are in compliance with state and federal laws and regulations; • Costs incurred are in compliance with the Master Agreement and Supplemental Agreement;
• Costs incurred are in compliance with the fiscal provisions stipulated in the contract; and
• The terms required by the Master Agreement and federal laws and regulations are in the contract.

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Audit Findings and Review Deficiencies
If a consultant’s ICR is audited or reviewed, LPAs are responsible for ensuring all executed and future contracts reflect the audited and adjusted fiscal year ICR(s). LPAs should request reimbursement from the consultant for overpayment on rates that were adjusted down.

The LPAs may be subject to sanctions outlined in Section 10.5 Sanctions if the state or federal government determines that any reimbursements to the consultant are the result of lack of proper contract provisions, unallowable charges, unsupported activities, or an inadequate financial management system.

Example of a FAR Compliant Indirect Cost Rate Schedule - Sample Consulting Company Statement of Direct Labor, Fringe Benefits, and General Overhead for the Year Ended December 31, 20xx Description
General
Ledger
Balance
Unallowable FAR
Reference
Total
Proposed
Home
Office
Field
Office
Direct Labor $123,456,789 ($934,568) (1)(15) $122,522,221 $85,765,555 $36,756,666 Fringe Benefits
Vacation/Paid Leaves $17,283,950 $17,283,950 $12,098,765 $5,185,185 Payroll Taxes $1,530,864 ($30,617) (15) $1,500,247 $1,050,173 $450,074 Medical Insurance $10,864,197 $10,864,197 $7,604,938 $3,259,259 401K Match $4,938,272 $4,938,272 $3,456,790 $1,481,481
Incentives and Bonus $15,308,642 ($3,123,456) (2) $12,185,186 $8,529,630 $3,655,556 Other Employee
Benefits $2,515,280 ($553,433) (3) $1,961,847 $1,373,293 $588,554 Total Fringe Benefits $52,441,206 ($3,707,506) $48,733,700 $34,113,590 $14,620,110 General &
Administrative Overhead
Indirect Overhead
Labor $72,696,030 ($4,452,541) (1)(2)(4)(15) $68,243,489 $65,790,948 $2,452,541 Purchased
Labor/Subconsultants $22,433,019 ($22,433,019) (5) $ - $ - $ - Office Rent $12,345,679 ($987,654) (6) $11,358,025 $11,038,025 $320,000 Supplies & Utilities $5,753,086 $5,753,086 $4,027,160 $1,725,926 Postage and
Shipping $1,770,000 $321,456 (5) $2,091,456 $1,464,019 $627,437 Equipment and
Maintenance $3,812,346 $3,812,346 $2,512,789 $1,299,557 Depreciation
Expense $6,202,469 ($1,345,678 ) (7) $4,856,791 $3,205,482 $1,651,309 Interest $123,456 ($123,456) (8) $ - $ - $ -
Dues and
Subscription $123,456 ($12,345) (9) $111,111 $77,778 $33,333 Advertising &
Marketing $427,406 ($45,678) (10) $381,728 $267,210 $114,518 Vehicles $5,896,123 ($147,403) (5)(11)(14) $5,748,720 $4,024,104 $1,724,616 Bad debts $12,345 ($12,345) (12) $ - $ - $ -

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Legal and
Accounting Services $3,713,580 ($222,815) (13) $3,490,765 $3,490,765 $ - Fines and Penalties $80,000 ($80,000) (16) $ - $ - $ -
Total General &
Admin. Overhead $135,388,995 ($29,541,478) $105,847,517 $95,898,280 $9,949,237 Total Indirect Costs $154,581,216 $130,011,870 $24,569,347 Indirect Cost Rates 126.17% 151.59% 66.84%
Figure 10.3: Standard Indirect Cost Rate Schedule
FAR References:
(1) FAR 31.202: Uncompensated overtime.
(2) FAR 31.205-6: Profit distribution and excess of the reasonable compensation. (3) FAR 31.205-46, 31.205-14 & 31.205-51: Meals not for valid business purposes and associated with lobbying and lacking adequate support
(4) FAR 31.201-2: Administrative staff costs billed to projects/clients. (5) FAR 31.201-2: Subconsultant labor and other direct costs billed to and paid by contracts/clients.
(6) FAR 31.205-36 and 31.205-17: Capital lease costs, rent paid in excess of reasonable costs, and idle facilities and capacity costs.
(7) FAR 31.201-2 & 31.205-6: Costs relates to personal use by employees and luxury vehicles.
(8) FAR 31.205-20: Interest and other financial costs not allowable. (9) FAR 31.201-2: Non-business related dues and subscriptions. (10) FAR 31.205-1: Costs for advertisement and public relations costs and trade show expense including labor.
(11) FAR 31.205-46(d) and 31.205-6(m)(2): Personal use of vehicle and lack of mileage logs and business purpose.
(12) FAR 31-205-3: Bad debts and collection costs.
(13) FAR 31.205-27 and 31.205-47: Reorganization and capital raising related costs and costs incurred in connection with violation of a law or regulation by the consultant. (14) FAR 31.205-46: Unreasonable costs and costs not supported by documents and lack of business purpose.
(15) FAR 31.201-6(a) & CAS 405-40: Labor costs associated with unallowable costs. (16) FAR 31.205-15: Fines and penalties resulting from violations of laws and regulations.

This section outlines the audit and review process for A&E contracts that at any time use federal and/or state funds. All proposed A&E contracts and supporting documents are subject to audit or review by Caltrans’ Independent Office of Independent Office of Audits and Investigations (IOAI), other state audit organizations, or the federal government. Not all proposed contracts will be audited or reviewed; rather, they will be selected on a risk-based approach.

10.1.4 Consultant Selection Methods
Figure 10-4: Consultant Selection Flowchart shows the three methods normally used in selecting a consultant. They are:
• One-Step RFP
• One-Step RFQ
• Two-Step RFQ/RFP

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The method used depends upon the scope of work, the services required, the project’s complexity, and the time available for selection of the consultant.

Beginning with Section 10.1.5: Consultant Selection Using the One–Step RFP Method, each of the selection methods is explained in detail. Regardless of the method used, the LPA must retain all consultant selection documentation in their project files as required by 23 CFR 172.

One-Step RFP
The One-Step RFP method may be used for Project–specific contracts when the scope of work is well defined or for Multi-phased contracts where the defined scope of work is divided into phases. Other considerations include when the consultant’s services are highly specialized and there are few qualified consultants.

One-Step RFQ
The One-Step RFQ method is used when the requested services are specialized, or the scope of work is defined broadly and may include multiple projects. Typical services are preliminary engineering, surveying, environmental studies, preparation of Plans Specifications and Estimate (PS&E) and environmental documents, or construction management. This method or the twostep selection process is used for procurement of on-call contract(s). Note that specifications and requirements in the RFQ must cover all aspects of the final need. An RFP specific to the project, task, or service must be included in the solicitation for evaluation of a consultant's specific technical approach and qualifications.

Two-Step (RFQ Followed by RFP)
The Two-Step RFQ/RFP method may be used when the scope of work is complex or unusual.

This method also may be preferred by LPAs that are inexperienced about negotiations and procedures for establishing compensation. However, the Two-Step RFQ/RFP method is recommended for procurement of multiple on-call contracts, or on-call list, through a single solicitation. Regardless of any process utilized for prequalification of consultants or for an initial assessment of a consultant's qualifications under a RFQ, a RFP specific to the project, task, or service is required for evaluation of a consultant's specific technical approach and qualifications.

For more information, refer to description of on-call contract in Section 10.1.2: Identifying & Defining a Need for Consultants. This method requires substantially more work and time than the other two methods described above.

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Initiate Project Select Consultants
Complete First Step
ϖ Select Project
ϖ Set Project Objectives
ϖ Appoint Contract Administrator
ϖ Determine Project Schedule
Identify need
for consultant
Define Scope
of Consultant
Work
Specify
Products to be
delivered
Determine
Method of
Consultant
Selection
Segment
Project Work
Establish
DBE Goals
Estimate Cost
of Consultant
Work
Determine Type of Contract
ϖ Lump Sum
ϖ Cost-Plus-Fixed-Fee
ϖ Cost Per Unit of Work
ϖ Specific Rates of Compensation
Appoint
Consultant
Selection
Committee and
Develop Schedule
for Selection
Appointment
Consultant
Selection
Committee and
Development
Schedule for
Selection
Develop
Technical Criteria
for Evaluation of
Proposals
Prepare
Request for
Proposal
Advertise
for
Consultants
(RFQ)
Appoint
Consultant
Selection
Committee and
Develop Schedule
for Selection
Advertise
for
Consultants
(RFQ)
Develop
Qualification
Criteria for
Evaluation of
Proposals
Develop
Qualification
Criteria for
Evaluation of
Proposals
Receive
Statements of
Qualifications
Receive
Statements of
Qualifications
Advertise for
Consultants
Evaluate
Statements of
Qualifications &
Develop Shortlist
Evaluate
Statements of
Qualifications
& Develop
Shortlist
Issue Request
for Proposal
(RFP)
Notify
Consultants
of Shortlist
Notify
Consultants
of Shortlist
Issue Request
for Proposal
(RFP)
Conduct
Consultant’s
Conference or
Answer
Written
Questions
Receive and
Evaluate
Technical
Proposals
Interview &
Develop Final
Ranking of
Consultants
Notify
Consultants
of Results
*Request Cost Proposal & Negotiate
Contract with Top-Ranked
Consultant
Develop
Contract
Initiate A&E
Consultant Audit
Process (Figure 10-2)
Negotiate Contract with Next
Highest Ranked Consultant until
Successful
Evaluate Reference Checks &
Other Information Gathered
Independantly
Evaluate Reference Checks &
Other Information Gathered
Independently
Interview &
Develop Final
Ranking of
Consultants
Notify
Consultants
of Results
*Request Cost Proposal & Negotiate
Contract with Top-Ranked
Consultant
Develop
Contract
Initiate A&E
Consultant Audit
Process (Figure
10-2)
Negotiate Contract with Next
Highest Ranked Consultant until
Successful
Interview
Top-Ranked
Consultants
Conduct
Consultant’s
Conference or
Answer
Written
Questions
Receive and
Evaluate
Technical
Proposals
Develop
Final
Interview &
Ranking of
Consultants
Notify
Consultants
of Results
*Request Cost Proposal & Negotiate
Contract with Top-Ranked
Consultant
Develop
Contract
Initiate A&E
Consultant Audit
Process (Figure
10-2)
Negotiate Contract with Next
Highest Ranked Consultant until
Successful
Evaluate Reference Checks &
Other Information Gathered
Independently
“One-Step, RFP” Method: Request for Proposal followed by Negotiation (Use when there are few consultants)
“One-Step, RFQ” Method: Request for Qualifications followed by Interviews and Negotiation (Use when there are many consultants)
“Two-Step, RFQ/RFP” Method: Request for Qualifications followed by Request for Proposal and Negotiation (Use when scope of work is complex)
Develop
Final
Contract
Execute
Contract
Issue Notice
to Proceed to
Consultant
Administer
Contract
Complete
Project
Conduct
Consultant’s
Conference
or Answer
Written
Questions
Conduct
Consultant’s
Conference
or Answer
Written
Questions
Notify
Consultants
of Short-List
Notify
Consultants
of ShortList
Same as “One-Step
RFQ” Method
Same as “One-Step RFP” Method
Receive Conformance
Letter from A&I and
Implement Findings
Figure 10-4: Consultant Selection Flowchart

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Local Assistance Procedures Manual Chapter 10
Consultant Selection

10.1.5 Consultant Selection Using the One-Step RFP Method Of the three methods discussed, this one is most easily modified for non-A&E consulting contracts. This procurement procedure usually involves a single step process with issuance of a request for proposal (RFP) to all interested consultants. For non-A&E consulting contracts, a cost proposal must be part of the RFP and the selection criteria. For A&E contracts, the cost proposal is not requested until the consultants have been final ranked based upon their submitted technical proposal.

Appoint Consultant Selection Committee
A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The committee reviews materials submitted by consultants, develops a shortlist of qualified consultants, and develops a final ranking of the most qualified proposals. Representation on the committee includes the Contract Administrator and subject matter experts from the project’s functional area. The members should be familiar with the project/segment to be contracted out and with the LPA standards that will be used in the contract. Participation by a Caltrans district representative is at the option of the agency and subject to availability of the DLAE staff. Caltrans participation on the interview panel does not relieve the LPA of its responsibility to ensure that proper procurement procedures are followed and all requirements are met.

LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T: Conflict of Interest & Confidentiality Statement.

Develop Technical Criteria for Evaluation of Proposals
The Contract Administrator is responsible for developing the technical criteria, and their relative importance which are used to evaluate and rank the consultant proposals. In-State or local preference must not be used as factor in the evaluation, ranking, and selection phase. All nontechnical evaluation criteria, including DBE participation, must not exceed 10 percent (23 CFR 172.7(a)(1)(iii)(D)). All price or cost related items which include, but are not limited to, cost proposals, direct salaries/wage rates, indirect cost rates, and other direct costs are prohibited from being used as evaluation criteria.

The criteria and relative weights must be included in the RFP, and the same criteria and relative weights must be used in the evaluation sheets. Failure to include criteria and relative weights and to use the same criteria and weights during the evaluation will result in the contract costs being ineligible for federal or state reimbursement. Exhibit 10-B: Suggested Consultant Evaluation Sheet is a recommended evaluation sheet with criteria and rating points for A&E consultants, where cost is not used as a rating factor. This format is not mandatory, but it is recommended in the interest of developing consistency among the hundreds of agencies and consultants operating in the state. The LPA should consult with the DLAE before making major changes to the suggested approach.

Develop Schedule for Consultant Selection
Before the contract is advertised, the Contract Administrator completes a contract procurement schedule including key dates for consultant selection activities. The Contract Administrator should confirm key dates with all selection committee members before completing the schedule.

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Prepare RFP
The information required in an RFP solicitation includes the following:
• Description of project;
• Clear, accurate, detailed Scope of work, technical requirements, and qualifications; • Services to be performed;
• Deliverables to be provided;
• Procurement schedule;
• Applicable standards, specifications, and policies;
• Schedule of work (including estimated start and end dates of the contract); • Method of payment, and cost proposal requirements. The cost proposal is submitted in a separate concealed format. Cost proposals are requested from the highest ranked firm.

If these negotiations are formally terminated, the cost proposal is then requested from the next highest ranked firm. See Exhibit 10-H: Sample Cost Proposal (Example 3) for sample cost proposal formats;
• Contract audit and review process requirements (see Section 10.1.3: A&E Consultant Audit and Review Process);
• Proposal format and required contents;
• Method, criteria and weighting for selection;
• Requirements for any discussions that may be conducted with three or more of the most highly qualified consultants following submission and evaluation of proposals; • Specify contract type;
• Special provisions or contracts requirements;
• A DBE contract goal is specified in the solicitation (see Exhibit 10-I: Notice to Proposers DBE Information), if a federal-aid contract;
• Consultants acting in a management support role requirements Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement; • Protest procedures and dispute resolution process per 2 CFR 200.318(k) and 2 CFR 172.5(c)(18).
• Title VI of the Civil Rights Act of 1964 – disadvantage business enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, sex, national origin, religion, age, or disability in consideration for an award.

The RFP specifies the content of a proposal, the number of copies required, due date, mailing address, and a physical address where the submittals may be hand delivered if different from the mailing address. A minimum of fourteen (14) calendar days is required between the time the RFP is published and time that proposals must be submitted. More time may be required for complex contracts or projects.

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Items typically required in a technical proposal include:
• Work plan (specify what is to be covered);
• Organizational chart;
• Schedule and deadlines;
• Staffing plan;
• Proposed Team—complete for prime consultant and all key subconsultants; • Key personnel names and classifications—key team members identified in the original proposal/cost proposal must not change (be different than) in the executed contract; • Staff resumes;
• Names of consultant’s project manager and the individual authorized to negotiate the contract on behalf of the consulting firm;
• Consultant DBE Commitment document, see Exhibit 10-O1: Consultant Proposal DBE Commitment;
• References.

Financial Management and Accounting System Requirements The LPA must ensure that consultant contract solicitation and advertising documents (RFPs) clearly specify that contracts must not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR 16.301-3, 2 CFR 200, and 48 CFR 31. The LPA must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations.

Advertise for Consultants
The solicitation process for consultant services must be by public advertisement, or by any other public forum or method that assures qualified in-State and out-of-State consultants are given a fair opportunity to be considered for award of contract. The minimum length of advertisement is 14 calendar days.

Advertisement of the RFP in a major newspaper of general circulation, technical publications of widespread circulation, professional associations and societies, recognized DBE organizations, web hosting or clearing houses known for posting government contract solicitations such as BidSync, Planetbids, Public Purchase, or posting the RFP on the LPA’s or other widely used websites are all acceptable methods of solicitation.

To document website postings, the LPA should retain copies of screen shots displaying the posted begin/end dates.

The LPA must keep a record of all consultants that have downloaded RFP online as well as those receiving an RFP through other means, to ensure that any inquiry responses, addendums, or amendments to the RFP are given to all consultants that received the RFP.

Conduct Proposer’s Conference or Answer Written Questions The LPA may allow for clarification of the RFP by inviting submittal of written questions or by conducting a proposer’s conference, or by doing both. The LPA must publish or mail their responses to any written questions to all consultants receiving the RFP. No response should be

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given to verbal questions. It is important that all competing consultants receive the same information. If a proposer’s conference is to be held, the exact time and place must be specified in the RFP. Attendance at a proposer’s conference normally is not mandatory. However, consultants not attending the conference do not receive notes from the meeting unless they request the notes.

Receive and Evaluate Technical Proposals
The Contract Administrator must verify that each proposal contains all of the forms and other information required by the RFP. If all required information is not provided, a proposal may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.

Documentation of when each proposal was received must be maintained in the project files.

Copies of date stamped envelope covers or box tops are recommended. The members of the consultant selection committee must evaluate each proposal according to the technical criteria listed in the RFP. Minimum of three proposals must be received and evaluated. If only two proposals are received, a justification must be documented to proceed with the procurement.

The justification should state that the solicitation did not contain conditions or requirements that arbitrarily limited competition per 23 CFR 172(a)(1)(iv)(D) and competition is determined to be inadequate and it is not feasible or practical to re-compete under a new solicitation per 23 CFR 172(a)(3)(iii)(C). If only one proposal is received, a Non-Competitive process must be justified and an Exhibit 12-F must be documented and signed by the DLAE. In either case, the readvertisement of the RFP should be considered as an option.

The committee must also evaluate reference checks and other information gathered independently. Reference checks must be completed and other information gathered before the interviews are conducted. If necessary, the results of the reference checks or other information may be discussed with the highest ranked qualified consultants at the interviews.

Develop Final Ranking and Notify Consultants of Results The selection committee evaluates each proposal; interviews the three or more highest ranked consultants (short listed) if noted in solicitation; and develops a final ranking of the highest ranked consultants. All consultants that submitted proposals must be informed about the final ranking of consultants. It is important that all competing consultants receive the same information.

Most consultants will request information as to why they were not the highest ranked. The LPA may have an established procedure adopted for conducting debriefings but may also consider the following: The selection committee should keep notes as to why a particular consultant was not selected. When a consultant requests debriefing, the reasons for not being selected must be objective reasons. The consultant should not be compared to others and should not be provided with information about other consultants during this debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.

Negotiate Contract with Top-Ranked Consultant
Cost proposal (for both Prime and all Subconsultant), and contract audit and review documents such as Exhibit 10-K: Consultant Certification of Indirect Costs and Financial Management System of Costs and Financial Management System and Exhibit 10-A: A&E Consultant

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Financial Document Review Request, whichever is applicable (see Section 10.1.3: A&E Consultant Audit and Review Process) should be submitted in a separate sealed envelope.

Typically, the cost proposals are submitted by the short-listed consultants only, at time of interview. However, if time is of the essence and it can be justified, or if no interviews are planned, the cost proposal can be requested from all consultants with their technical proposal.

The cost proposal for the most qualified consultant will be opened and used to begin negotiations. If agreement cannot be reached, then negotiations proceeds to the next most qualified consultant. Each consultant’s cost proposal must remain sealed until negotiations commence with that particular consultant. The goal of negotiations is to agree on a final contract that delivers the services, or products required at a fair and reasonable cost to the LPA. At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals must be returned to consultants.

Cost proposals in electronic form must be submitted separately from the RFP and contained in a secure database that is inaccessible to the members involved in the A&E consultant contract procurement process. Only the cost proposal of the most qualified consultant will be requested to be sent to the members. Cost proposals of unsuccessful consultants are confidential and must not be opened by the LPA or any private entity that the LPA uses to store the cost proposals. Any concealed cost proposals of the unsuccessful consultants must be returned unopened or properly disposed of in accordance with the LPA’s written policies and procedures.

The independent cost estimate, developed by the LPA in advance of requesting a cost proposal from the top-ranked consultant, is an important basis and tool for negotiations or terminating unsuccessful negotiations with the most qualified consultant. Items necessary for the independent cost estimate include, hours/detailed work, direct labor costs, indirect labor costs, other direct costs, and profit/fee. Agencies must retain documentation of how the cost estimate was developed. It can be revised, if needed, for use in negotiations with the next most qualified consultant. A contract audit and review may be required (see Section 10.1.3: A&E Consultant Audit and Review Process in this chapter). LPA Contract Administrator ensures that all required documentations are provided to Caltrans IOAI within 10 days of written request, including all documents for a Financial Review, if applicable. Caltrans IOAI will not proceed with a Financial Document Review until all required documentation is completed correctly and submitted.

Negotiations should be finalized after addressing all deficiencies noted in the Caltrans IOAI Financial Review Letter if applicable. An indirect cost audit may be performed within the record retention period of the contract.

Items typically negotiated include:
• Work plan;
• Schedule and deadlines (for deliverables and final duration of contract); • Products to be delivered;
• Classification, wage rates, and experience level of personnel to be assigned; • Cost items, payments, and fees. Fee is required to be negotiated as a separate element;
• Hours, level of effort by task and/or classification.

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The consultant’s ICR is not a negotiable item. A lower rate cannot be negotiated by the LPA.

The LPA and the consultant will agree on the final cost proposal and incorporate into final contract. Retain all documentation related to negotiations.

Before executing the consultant contract, the LPA must review contract to ensure that all federal and state requirements have been met (see A&E Consultant Procurement Checklist:
https://dot.ca.gov/programs/local-assistance/environmental-and-other-policy-issues/consultantselection-procurement for sample template) and adjustment or denial of ICR as identified in the Financial Review Letter has been included in the final cost proposal, if applicable.

Prior to contract award, or after contract award but no later than the first invoice, the LPA must submit a completed Exhibit 10-C for all new federal funded A&E consultant contracts using the database at https://dla.dot.ca.gov/fmi/webd/Exhibit%2010-C (please use Firefox or Chrome if not supported by your browser). Submission of Exhibit 10-C to the Exhibit 10-C database is not required for non-A&E consultant contracts.

If there are any changes requiring an amendment to the contract after submittal of Exhibit 10-C, refer to Section 10.1.8: Contract Amendments.

10.1.6 Consultant Selection Using the One-Step RFQ Method The RFQ method is used when the services being procured are specialized, or the scope of work is defined broadly and may include multiple projects.

Appoint Consultant Selection Committee
A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The committee reviews and scores the materials submitted by consultants in response to the RFQ, develops a shortlist of qualified consultants, interviews those consultants, and develops a final ranking of the most qualified consultants.

Representation on the committee includes the Contract Administrator and subject matter experts from the project’s functional area. The members should be familiar with the scope of work to be contracted out and with the LPA standards that will be used in the contract.

Participation by a Caltrans district representative is at the option of the LPA and subject to the availability of the DLAE staff. Caltrans participation on the interview panel does not relieve the LPA of its responsibility to ensure that proper procurement procedures are followed and all requirements are met.

LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T: Panel Member Conflict of Interest & Confidentiality Statement.

Develop Technical Criteria for Evaluation of Qualifications The Contract Administrator is responsible for developing the technical criteria, and their relative importance which are used to evaluate and rank the consultant qualifications. The criteria and relative weights must be included in the RFQ, and the same criteria and relative weights must be used in the evaluation sheets. Failure to include criteria and relative weights and to use the same criteria and weights during the evaluation will result in the contract costs being ineligible for federal or state reimbursement. Exhibit 10-B: Suggested Consultant Evaluation Sheet is a recommended evaluation sheet with criteria and rating points for A&E consultants, where cost is

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not used as a rating factor. This format is not mandatory, but it is recommended in the interest of developing consistency among the hundreds of agencies and consultants operating in the state. The LPA should consult with the DLAE before making major changes to the suggested approach.

Develop Schedule for Consultant Selection
Before a contract is advertised, the Contract Administrator completes a contract procurement schedule including key dates for consultant selection activities. The Contract Administrator should confirm target dates with all selection committee members before completing the schedule.

Prepare RFQ
As a minimum, the RFQ generally includes the following:
• General description of the services or project(s);
• Scope of work;
• Schedule of work (including contract begin and end dates); • Method of payment, and cost proposal requirements. The cost proposal is submitted in a separate sealed envelope. See Exhibit 10-H: Sample Cost Proposal for sample cost proposal formats;
• Contract audit and review process requirements (see Section 10.1.3: A&E Consultant Audit and Review Process);
• Statement of Qualification (SOQ) format and required content to be submitted; • Method and criteria and weights for selection;
• A DBE contract goal is specified in the solicitation (see Exhibit 10-I: Notice to Proposers DBE Information), if a federal-aid contract;
• Consultants acting in a management support role requirements Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement; Protest procedures and dispute resolution process per 2 CFR 200.318(k).

The RFQ specifies the content of the SOQ, the number of copies required, due date, mailing address, and a physical address where the submittals may be hand delivered if different from the mailing address. Two to four weeks is usually allowed between the time the RFQ is published and time that SOQs must be submitted. More time may be required for complex contracts or scope of work.

Items typically required in a statement of qualification include:
• Qualifications of key personnel (including consultant project manager) proposed for the contract. Key team members identified in the original proposal/cost proposal must not change (be different than) in the executed contract;
• Staff resumes;
• Related projects that key personnel have worked on;
• Qualifications/experience of the firm;

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• Organizational chart;
• Forecast or Schedule of work;
• Consultant DBE Commitment document, see Exhibit 10-O1: Consultant Proposal DBE Commitment;
• References.

Financial Management and Accounting System Requirements The LPA must ensure that Consultant contract solicitation and advertising documents (RFQs) clearly specify that contracts must not be awarded to a consultant without an adequate financial management and accounting system as required by 48 CFR 16.301-3, 2 CFR 200, and 48 CFR

31. The LPA must ensure the selected consultants have adequate financial management systems as required by the applicable federal regulations.

Advertise for Consultants
The solicitation process for consultant services must be by public advertisement or any other public forum or method that assures qualified in-State and out-of-State consultant are given a fair opportunity to be considered for award of contract. The RFQ must contain sufficient project work information, so that interested consultants can submit an appropriate SOQ.

Advertisements for RFQ may take one of two approaches. The most common is an advertisement or publication of the RFQ in a major newspaper of general circulation, technical publication of widespread circulation, professional associations and societies, recognized DBE organizations, web hosting or clearing houses known for posting contract solicitations such as Bid Sync, PlanetBids, or posting the RFQ on other widely used websites. To document website postings, the LPA should retain copies of screen shots displaying the posted begin/end dates.

In the second approach, the LPA advertises the availability of the RFQ in a major newspaper of general circulation, technical publications of widespread circulation, professional associations and societies, recognized DBE organizations, or through a web hosting or clearing houses known for posting contract solicitations such as BidSync or PlanetBids, and requests that interested consultants send a letter of interest to the LPA for the RFQ. The RFQs must then be sent to those firms who indicated interest in the RFQ. In some cases, it may be desirable to advertise nationwide for a particular project or service. This approach provides a registry for firms who received the RFQ and therefore facilitates the broadcast of any revisions or addenda to the RFQ, if necessary.

Issue/Publish RFQ
The LPA must publish the RFQ online and also issue the RFQ to all consultants responding to newspaper advertisement. The LPA must keep a record of all consultants that have downloaded the RFQ on line as well as those receiving an RFQ through other means, to ensure that any inquiry responses, addendums, or amendments to the RFQ are given to all consultants that received the RFQ.

Receive/Evaluate Statements of Qualifications and Develop Shortlist The first step in the evaluation process is to determine that each SOQ contains all forms and other information required by the RFQ. Otherwise, the submittals may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong

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location, and submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.

Documentation of when each proposal was received must be maintained in the project files.

Copies of date stamped envelope covers or box tops are recommended.

Minimum of three proposals must be received and evaluated. If only two proposals are received, a justification must be documented to proceed with the procurement. If only one proposal is received, a Non-Competitive process must be justified, and an Exhibit 12-F must be documented and signed by the DLAE. In either case, the re-advertisement of the RFP should be considered as an option.

The consultant selection committee reviews the submitted SOQ according to the published evaluation criteria and weighting factors. The committee makes an independent random check of one or more of the consultant’s references. This check applies to major subconsultants also.

The committee establishes a shortlist of consultants who are considered to be best qualified to perform the contract work. The shortlist includes enough qualified consultants to ensure that at least three consultants are interviewed.

Notify Consultants of Shortlist
All consultants that submitted an SOQ must be notified of the results of the review. The notification also identifies those consultants (short list) that will be requested to attend interviews if interviews were an option in the solicitation. Most consultants will request information as to why they were not placed on the shortlist. Therefore, the selection committee should keep notes why a particular consultant was not selected for the shortlist. When a consultant requests a debriefing, the reasons given for not being selected must be objective reasons. Consultants should not be compared with each other during the debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.

Interview Top-Ranked Consultants
Each consultant to be interviewed is given a copy of the draft of the proposed contract, defining the detailed scope of work, and/or description of required services, and other information. This should be sent with the initial notification of the interview.

Between the time of the notification of the shortlist and interviews, the LPA may answer any questions concerning the scope of work to be contracted out, if not done earlier during the solicitation. In addition, the LPA may conduct additional reference checks for each consultant to be interviewed. Consultants should submit their questions about the RFQ and receive their answers from the LPA in writing. It is required that all consultants on the shortlist receive the questions and answers and are given the same information.

The committee should evaluate reference checks and other information that is gathered independently. Reference checks must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks and other information may be discussed with the consultant at the interview.

Interviews are to be structured and conducted in a formal manner. Each consultant must be allowed the opportunity to make a presentation if desired; however, a time limit should be specified. Interview questions are prepared in advance.

Two types of questions may be asked:

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• Questions that are to be asked of all competing consultants, and • Questions relating to each specific consultant, based upon the reference checks, and the strengths and weaknesses identified during evaluation of the SOQ
The agency can request competing consultants to bring additional information or examples of their work to the interviews; if the additional information facilitates the interview or evaluation process. Additional information requested should be kept at a minimum, that is, only information required to select the most qualified consultant for the contract. The selection committee or LPA must not gather additional information concerning the consultants after the interviews are completed.

Develop Final Ranking and Notify Consultants of Results All consultants interviewed must be informed about the final ranking of consultants. It is important that all competing consultants receive the same information.

Most consultants will request information as to why they were not selected as the most qualified.

Therefore, the selection committee should keep notes as to why a particular consultant was not selected. When a consultant requests debriefing, the reasons for not being selected must be objective. Consultants should not be compared with each other or provided with information about other consultants during the debriefing.

Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing. The next two sections provide guidance when the RFQ is solicited for specialized services and additional information is required prior to cost negotiations with consultant. For on-call contracts, skip the next two sections and begin Negotiation phase.

Conduct Scoping Meeting
The Contract Administrator meets with the first-ranked consultant’s project manager to review the project, and to ensure that the consultant has a complete understanding of the work that is required. The consultant is shown as much material as is available regarding the project. Any technical questions regarding the project are answered for the consultant.

Request Cost Proposal
The first-ranked consultant is asked to provide a cost proposal to perform the work described in the draft contract and discussed at the scoping meeting. The work is to be performed according to the conditions described in the draft contract using the payment method described therein.

Alternatively, if time is of the essence and it can be justified, sealed cost proposals may be requested from all of the consultants on the shortlist.

If the contract involves more than one project, the consultant must provide a separate cost proposal for each project in addition to a summary cost proposal for the total contract. If the contract involves milestones, the consultant must furnish a separate cost proposal for each milestone with a summary cost proposal for the total costs. If the contract involves subconsultants, the prime consultant must include a separate cost proposal for each subconsultant. Each subconsultant’s cost proposal must follow the same format as the prime consultant’s cost proposal.

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Negotiate Contract with Top-Ranked Consultant
Cost proposal (for both Prime and all Subconsultant), and contract audit and review documents such as Exhibit 10-K: Consultant Certification of Indirect Costs and Financial Management System and Exhibit 10-A: A&E Consultant Financial Document Review Request, whichever applicable (see Section 10.1.3: A&E Consultant Audit and Review Process) will be submitted in a separate sealed envelope. Typically, the cost proposals are submitted by the short-listed consultants only, at time of interview. However, if time is of the essence and it can be justified, or if no interviews are planned, the cost proposal can be requested from all consultant with their statements of qualification.

After the top-ranked consultant submits a sealed cost proposal, the LPA reviews the cost proposal and compares it with the LPA’s confidential detailed independent cost estimate and enters into negotiations. The goal of negotiation is to agree on a final contract that delivers to the LPA the services or products required at a fair and reasonable cost. The independent cost estimate, developed by the LPA in advance of requesting a cost proposal from the top-ranked consultant, is an important basis and tool for negotiations.

Negotiations should commence with the most qualified consultant. If agreement on a fair and reasonable price cannot be reached, negotiations should then be formally terminated.

Negotiations then proceed to the next most qualified consultant, and so on. Each consultant’s cost proposal must remain sealed until negotiations commence with that particular consultant.

At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals must be returned to consultants.

Cost proposals in electronic form must be submitted separately from the RFQ and contained in a secure database that is inaccessible to the members involved in the A&E consultant contract procurement process. Only the cost proposal of the most qualified consultant will be requested to be sent to the members. Cost proposals of unsuccessful consultants are confidential and must not be opened by the LPA or any private entity that the LPA uses to store the cost proposals. Any concealed cost proposals of the unsuccessful consultants must be returned unopened or properly disposed of by permanently deleting the cost proposals in accordance with LPA’s written policies and procedures.

A contract audit and review may be required (see Section 10.1.3: A&E Consultant Audit and Review Process earlier in this chapter). LPA Contract Administrator is responsible for the submittal of all required documentations to Caltrans IOAI in a timely fashion, including all documents for a Financial Review, if applicable. Caltrans IOAI will not proceed with a Financial Review until all required documentation is completed correctly and submitted. Negotiations may be completed after receipt of the Caltrans IOAI Financial Review Letter. An indirect cost audit may be performed within the record retention period of the contract.

The items typically negotiated include:
• Work plan;
• Staffing plan;
• Schedule (including contract begin and end dates);
• Products to be delivered;
• Classification, wage rates, and experience level of personnel to be assigned;

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• Cost items, payments and fee. Fee is required to be negotiated as a separate element.

The consultant’s ICR is not a negotiable item. A lower rate cannot be negotiated by the LPA.

For on-call contracts, typically a price agreement is reached based on specific rate of compensation for the term of the contract. The subsequent task orders (or mini agreements for individual project work) is negotiated based on cost plus fee, or lump sum, which is derived from the wage rates agreed upon earlier for the on-call contract.

Before executing the consultant contract, the LPA must review contract to ensure that all federal and state requirements have been met (see A&E Consultant Procurement Checklist at https://dot.ca.gov/programs/local-assistance/guidance-and-oversight/consultant-selectionprocurement), and receive Caltrans IOAI’s Financial Review acceptance letter, if applicable.

Prior to contract award, or after contract award but no later than the first invoice, the LPA must submit a completed Exhibit 10-C for all new federal funded A&E consultant contracts using the database at https://dla.dot.ca.gov/fmi/webd/Exhibit%2010-C (please use Firefox or Chrome if not supported by your browser).

If there are any changes to the contract after submittal of Exhibit 10-C, refer to Section 10.1.8:

Contract Amendments.

10.1.7 Consultant Selection Using the Two-Step RFQ/RFP Method Combined RFQ and RFP
Selecting consultants using the Two-Step RFQ/RFP method requires combining certain steps from each of the other two methods previously described. The consultants are rated based upon both their qualifications and their technical proposals. This procurement procedure involves a two-step process with issuance of a request for qualifications (RFQ) whereby responding consultants are evaluated and ranked based on qualifications and an RFP is then provided to three or more of the most highly qualified consultants. The two-step method leads to an executed project specific contract.

A different process may also be used that includes assessing minimum qualifications of consultants to perform services under general work categories or areas of expertise through a prequalification process whereby annual statements of qualifications and performance data are encouraged. These consultants are not ranked, and an RFP must be submitted to the entire list for evaluation and consideration. Regardless of any process utilized for prequalification of consultants or for an initial assessment of a consultant's qualifications under a RFQ, a RFP specific to the project, task, or service is required for evaluation of a consultant's specific technical approach and qualifications.

The initial steps in this method (up to the development and notification of the shortlist) are similar to the steps followed when using the One-Step RFQ method. At this point, the consultants from the shortlist are issued an additional RFP. The remaining steps are the same as the later steps followed in the One-Step RFP method. The combination of these steps is indicated in Figure 10-4: Consultant Selection Flowchart. Because it is a combination of the One-Step RFQ and One-Step RFP methods, this method of consultant selection requires more work and time than the other two methods. Consequently, the combined RFQ/RFP method is recommended for use only when the scope of work is not clearly known, very complex or unusual.

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The Two-Step RFQ/RFP is also well suited for procuring multiple on-call contracts through a single solicitation (see Section 10.1.2 Determine Type of Contract). The outcome of the first step RFQ will be multiple contracts, or on-call list of consultants. For multiple on-call contracts, project work will be procured through subsequent competition or mini-RFPs amongst the on-call consultants.

LPAs may also use the Two-Step RFQ/RFP method to:

1. Develop and maintain a pre-qualified file/list of consultant firms by specific work categories or areas of expertise. This list includes all consultants that meet the minimum published pass/fail requirements. The pre-qualified list can be updated annually or at least every two years and must be maintained by the agency. This list has not gone through the evaluation process.

2. Create a short list of evaluated and ranked consultants that leads to executed contracts Because it is a combination of the One-Step RFQ and One-Step RFP methods, this method of consultant selection requires more work and time than the other two methods. Consequently, the combined RFQ/RFP method is recommended for use when the scope of work is very complex or unusual.

Categorize work
Descriptions of the categories of work, deliverables and the minimum qualification standards for each category must be clearly identified.

The LPA may prequalify consulting firms in the following (or more) categories:
• Roadway Design
• Bridge Design
• Bridge Inspection
• Traffic Engineering
• Environmental Services
• Roadway Construction Inspection and Administration
• Landscape Architecture
• Land Surveying
• Intelligent Transportation System (ITS)
• Federal–aid Highway Project Development Support Services Establish Minimum Qualifications
In an effort to ensure quality performance and results, a consultant should be required to meet certain minimum qualifications to be eligible for consideration in the pre-qualification process.

General criteria guidelines should be established for consultant selection for a pre-qualified list.

The criteria may be established by an individual or a panel of subject matter experts for the specific task of developing the criteria. Some agencies also establish appropriate weights for each criterion. It may be necessary to modify the criteria to fit specific cases. When a RFQ is published, it should state the criteria that will be used in the selection process.

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Criteria for evaluating statements of qualifications, may include but are not limited to:
• Special expertise and experience of the firm’s key employees • Proposed staffing (include number of licensed and specialized staff) for the project and previous experience of those identified
• Experience of the firm and their personnel on previous projects similar to the one under consideration
• Consultant DBE Commitment document (see Exhibit 10-O1) • Professional references by the firm with the LPA
• Understanding of the project by the firm as demonstrated by their approach to organizing and management of the work
• Current workload of the firm and their ability to meet the proposed project schedule • Quality of previous performance by the firm with the LPA • Use of sub-consultants to accomplish work on the project • Equipment the firm has available and proposes to use as compatibility with ComputerAided Drafting and Design (CADD) and other equipment proposed to be used in accomplishing the work
• Familiarity with federal, state, and local codes, requirements, standards, and procedure • Examples of minimum qualifications for work categories above are provided here based on Caltrans best practices
Issue RFQ
The need for services of a consulting firm may be advertised in appropriate national, state, and local publications and web sites. Notices can also be sent to firms known to be qualified to do specific work, to professional societies, and to recognized Disadvantaged Business Enterprises (DBE) organizations. The advertisements and notices seek statements of interest and qualifications from consultants who are interested in the project. The DBE goal is established at the master on-call contract and included in the solicitation document.

The SOQ should list consulting firm details, names of principals, office locations, personnel by discipline, project experience and examples, current workload, types of service the firms are qualified to perform, and previous performance. Also, resumes of key persons, specialists, and other associates that may be assigned to the project or projects should be included. This information should be the basis for evaluating and placing a consulting firm on a general prequalification list.

Federal regulations require that any procedures related to pre-qualifying consultant cannot restrict competition.

Pre-qualification of consultants may be allowed as a condition for submitting a technical proposal for a contract only if the period between the date of the issuance of the RFP and the deadline for submitting a technical proposal affords sufficient time to enable a consultant to obtain pre-qualification status.

Another practice is to qualify consultants on a project-by-project basis. This is accomplished for some agencies by advertising or publishing notices in national, state, and local publications for

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needed services for specific, individual projects. These notices include a precise project location, a defined preliminary scope of services to be performed, a specific schedule within which the work is to be completed, and a list of products and deliverables to be provided by the consultant. Specific project advertisements usually are published when the proposed project is large and complex, in-house resources are not available, special expertise is required, or the objectivity of an outside authority is desired.

Appropriate Federal-aid requirements should be complied with on Federal-aid projects.

Set-Up Evaluation Process
The first step in the evaluation process is to determine that each SOQ contains all forms, qualifications and other information required by the RFQ. Otherwise, the submittals may be considered nonresponsive and rejected without evaluation. Documentation of when each SOQ was received must be maintained in the project files. Copies of date stamped envelope covers or box tops are recommended.

If all required information is not provided, a SOQ may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.

The LPA must establish a process by which SOQs are evaluated and consultants who are deemed meeting the minimum qualifications are accepted and placed on a per-qualified list.

Whether the LPA has a “committee” of experts evaluating the SOQs or individuals responsible for the evaluation, the process must be well defined, open and transparent. The pre-qualification process must also allow for consultants to be re-evaluated in cases of denials. The LPA must specify how long the pre-qualified list last, not to exceed two years. Federal regulation recommends refreshing the SOQs on an annual basis.

LPA Contract Administrator ensures that all committee members meet the conflict of interest requirements (23 CFR 172) by completing and signing a conflict of interest statement prior to selection process initiation. A sample conflict of interest form is provided in Exhibit 10-T.

Evaluate Qualifications and Add Firm to List
All SOQs received should first be reviewed for completeness. Each response must contain all required forms and any other information requested in the advertisement. The response may be considered incomplete and rejected without further evaluation if all required information is not provided or if the submittal is late.

The qualifications of all responding firms are then reviewed according to established evaluation criteria or factors. The agency then establishes a short list of at least three consultants that are determined to be the most highly qualified to perform the required work. Firms not selected should be notified in writing.

Maintain List
Pre-qualification of a consultant expires in two years. Pre-qualified consultants must renew their pre-qualification status every two years. Firms can apply to be on the list at any time. After a period of two years, firms should re-apply (repeat the process of submitting SOQs) to be on the list. In addition to the required two-year renewal process, the consultant should also be required to update the firm’s organizational structure within one year when there is a corporate/affiliate change, ownership control, type of work expertise, capacity, or any other major change.

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If the consultant does not meet the minimum requirements and their SOQ is rejected, the committee must respond to the consultant explaining the reason for their rejection. The consultant is allowed to reapply to be on the list again provided the reasons for rejection are corrected.

The list of qualified firms can be maintained online through the agency’s website. Firms can also apply to be on the list through the agency website for ease of operation.

Issue RFP to Pre-Qualified Consultants on List
An RFP is sent to the short-listed firms. The RFP should indicate the content of the technical proposal, technical review procedures, anticipated schedule of activities, scope of work, project description, where the technical proposals are to be delivered, the number of copies required, and the due date.

Some agencies receive the technical proposal orally as part of an interview conducted for this purpose. In these cases, written documentation may not be required.

Items typically required in a technical proposal include:
• Work plan
• Organization plan
• Schedule for meeting time frame
• Available computer equipment and programs
• Staffing plan and resumes including sub-consultants
• Pre-award audit/financial package information (if deemed appropriate) • Examples of similar work previously completed
• Sub-consultants, DBE, their proposed participation, and other related information Conduct Proposer’s Conference or Answer Written Questions The LPA may allow for clarification of the RFP by inviting submittal of written questions or by conducting a proposer’s conference, or by doing both. The LPA must publish or mail their responses to any written questions to all consultants receiving the RFP. No response should be given to verbal questions. It is important that all competing consultants receive the same information. If a proposer’s conference is to be held, the exact time and place must be specified in the RFP. Attendance at a proposer’s conference normally is not mandatory. However, consultants not attending the conference do not receive notes from the meeting unless they request the notes.

Receive and Evaluate Technical Proposals
The Contract Administrator must verify that each technical proposal contains all forms and other information required by the RFP. If all required information is not provided, a technical proposal may be considered nonresponsive and rejected without evaluation. Late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected. Submittal of additional information after the due date must not be allowed.

Documentation of when each technical proposal was received must be maintained in the project files. Copies of date stamped envelope covers or box tops are recommended.

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A consultant selection committee with a minimum of three members is appointed at the beginning of the consultant selection process. The members of the consultant selection committee must evaluate each technical proposal according to the technical criteria listed in the RFP. A minimum of three technical proposals must be received and evaluated.

If only two technical proposals are received, a justification must be documented to proceed with the procurement. If only one technical proposal is received, a Non-Competitive process must be justified, and an Exhibit 12-F must be documented. In either case, the re-advertisement of the RFP should be considered as an option.

The committee must also evaluate reference checks and other information gathered independently. Reference checks must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks or other information may be discussed with the highest ranked qualified consultants at the interviews.

Develop Final Ranking and Notify Consultants of Results The selection committee discusses and documents the strengths and weaknesses of each technical proposal, interviews the three or more highest ranked consultants (shortlisted), and develops a final ranking of the highest ranked consultants. All consultants that submitted technical proposals must be informed about the final ranking of consultants. It is important that all competing consultants receive the same information.

Most consultants will request information as to why they were not the highest ranked. Therefore, the selection committee should keep notes as to why a particular consultant was not selected.

When a consultant requests debriefing, the reasons for not being selected must be objective reasons. The consultant should not be compared to others and should not be provided with information about other consultants during this debriefing. Normally, the Contract Administrator does the debriefing; however, any member of the selection committee may be designated to do the debriefing.

Request Cost Proposal and Negotiate Contract with Top-Ranked Consultant The first-ranked consultant is asked to provide a cost proposal to perform the work described in the draft contract and discussed at the scoping meeting. The work is to be performed according to the conditions described in the draft contract using the payment method described therein.

Alternatively, if time is of the essence and it can be justified, sealed cost proposals may be requested from all of the consultants on the shortlist.

If the contract involves more than one project, the consultant must provide a separate cost proposal for each project in addition to a summary cost proposal for the total contract. If the contract involves milestones, the consultant must furnish a separate cost proposal for each milestone with a summary cost proposal for the total costs. If the contract involves subconsultants, the prime consultant must include a separate cost proposal for each subconsultant. Each subconsultant’s cost proposal must follow the same format as the prime consultant’s cost proposal.

Cost proposal (for both prime and all subconsultants) and contract audit and review documents, such as Exhibit 10-K and Exhibit 10-A, whichever applicable (see Section 10.1.3: A&E Consultant Audit and Review Process), will be submitted in a separate sealed envelope.

After the top-ranked consultant submits a sealed cost proposal, the LPA reviews the cost proposal and enters into negotiations. The goal of negotiation is to agree on a final contract that

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delivers to the LPA the services or products required at a fair and reasonable cost. The independent cost estimate, developed by the LPA in advance of requesting a cost proposal from the top-ranked consultant, is an important basis and tool for negotiations.

Negotiations should commence with the most qualified consultant. If agreement on a fair and reasonable price cannot be reached, negotiations should then be formally terminated.

Negotiations then proceed to the next most qualified consultant, and so on. Each consultant’s cost proposal must remain sealed until negotiations commence with that particular consultant.

At the completion of successful cost negotiations, all remaining sealed envelopes containing cost proposals must be returned to consultants.

A contract audit and review may be required (see Section 10.1.3: A&E Consultant Audit and Review Process). The LPA Contract Administrator is responsible for the submittal of all required documentations to Caltrans IOAI in a timely fashion, including all documents for a Conformance Review, if applicable. Negotiations may be completed after receipt of the Caltrans IOAI Conformance Letter. An indirect cost audit may be performed within the record retention period of the contract.

Items typically negotiated include:
• Work plan
• Schedule and deadlines (for deliverables and final duration of contract) • Products to be delivered
• Classification, wage rates, and experience level of personnel to be assigned • Other Direct Cost items, and profit or fee
The consultant’s ICR is not a negotiable item. A lower rate cannot be negotiated by the LPA.

The LPA and the consultant will agree on the final cost proposal and incorporate into final contract.

Before executing the consultant contract, the LPA must review contract to ensure that all federal and state requirements have been met (see A&E Consultant Procurement Checklist at https://dot.ca.gov/programs/local-assistance/guidance-and-oversight/consultant-selectionprocurement for sample template).

10.1.8Completing the Project
Develop the Final Contract
The Contract Administrator requests a revised cost proposal from the consultant after:
(1) negotiations have been completed, (2) the LPA and consultant have agreed to a fair and reasonable price, and (3) a letter, if applicable, is released by Caltrans IOAI that accepts, denies or makes an adjustment to the proposed ICR. The Contract Administrator should review the revised cost proposal to ensure that all the items and changes discussed during negotiation were included. This revised cost proposal then becomes the final cost proposal, is attached to and made a part of the consultant contract. Sample contract language and format have been included as Exhibit 10-R: A&E Boilerplate Agreement Language.

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The Contract Administrator has responsibility to ensure that the final negotiated contract is complete and has verified that all required backup documents have been provided. Copies of the contract are sent to the consultant for signature first.

Review and Approval of Contracts
Proposed contracts for consultant services (including subcontracted work) must be reviewed by the LPA to verify that:
• Compensation is fair and reasonable and includes prevailing wage rates, if applicable; • Work activities and schedules are consistent with the nature and scope of the project; • DBE goal Exhibit 10-O2: Consultant Contract DBE Commitment is included for all contracts regardless of goal;
• Exhibit 10-K: Consultant Annual Certification of Indirect Costs and Financial Management System (for Prime and Subs), and Exhibit 10-A: A&E Consultant Financial Document Review Request and Checklist and all supporting documents, if applicable (contracts at or above $150,000), have been submitted to Caltrans IOAI; • If applicable, adjustment or denial of the ICR identified in the Financial Review Letter have been included in the final cost proposal;
• Exhibit 10-C: A&E Consultant Contract Database must be used to ensure that required documentation has been provided;
• A cost proposal (see Exhibit 10-H: Sample Cost Proposal), must include the costs of materials, direct salaries, payroll additions, other direct costs, indirect costs, fees, and backup calculations.

Before approving a contract for consulting services, the Contract Administrator must be satisfied that the consultant’s organization:
• Is qualified to perform the services required;
• Is in a position, considering other work commitments, to provide competent and experienced personnel to perform the services in the time allowed; • Is fully aware of all applicable federal and state laws including implementing regulations, design standards, specifications, previous commitments that must be incorporated into the design of the project, and administrative controls including those of Caltrans and FHWA.
• Has an adequate financial management system as required by the applicable federal regulations.
• Is not disbarred or suspended from state or federally funded contracts. Per 23 CFR 172.7(b)(3) “A contracting agency shall verify suspension and debarment actions and eligibility status of consultants and subconsultants prior to entering into an agreement or contract in accordance with 2 CFR 1200 and 2 CFR 180.”
The contract must provide for a defined level of acceptability and a statement to the effect that the consultant may be required to modify its work as necessary; to meet that level of acceptability as defined in the contract. The contract must provide for LPA reviews at

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appropriate stages during performance of the work, to determine if any changes or other actions are warranted.

The contract must provide that the consultant and subconsultants must maintain all books, documents, papers, accounting records, and other information pertaining to costs incurred.

Such materials must be available for inspection and audit by federal, State, and LPA authorized representatives; and copies thereof must be furnished, if requested.

Following final settlement of the contract accounts with the State or FHWA, such records and documents may be archived at the option of the LPA and must be retained for a three-year period after processing of the final voucher by FHWA.

Execute Contract and Issue Notice to Proceed to Consultant The Contract Administrator sends the consultant a fully executed copy of the contract with an original signature and issues a notice to proceed. Funds may not be used to reimburse the agency for any work or costs incurred before the Authorization to Proceed is issued, or for consultant costs incurred prior to the execution of the consultant contract. All executed on-call contracts must have a begin and end date. All executed project specific or multiphase contracts must have a begin date and should have an end date prior to the Project End Date. Work performed after the Project End Date is not eligible for reimbursement; see LAPM Chapter 3.

LPA consultant selection and contract execution costs may be reimbursable.

For on-call contracts, a fully executed copy of the contract with original signatures will be sent to the consultant. Each subsequent task order (for individual project) will be accompanied with a copy of the signed task order and a Notice to Proceed, once it is negotiated and approved. Task order expiration dates must not exceed the Master On-call agreement end date.

Administer the Contract
Project work begins as specified in the contract after the notice to proceed is issued to the consultant. Thereafter, the LPA manages and administers the contract to ensure that a complete and acceptable product is received on time, within standards, and within budget and terms of the contract.

Contract administration activities help to ensure that contractual obligations are completed satisfactorily. Generally, these activities include:
• Monitoring project progress and compliance with contract requirements; • Receiving, reviewing and assessing reports, plans, and other required products/ deliverables;
• Receiving and reviewing state prevailing wages (see Department of Industrial Relations websites below):
o DIR FAQ website: http://www.dir.ca.gov/OPRL/FAQ_PrevailingWage.html o DIR Wage Determination website:
http://www.dir.ca.gov/oprl/DPreWageDetermination.htm
• Reviewing invoices to ensure costs claimed are in accordance to the method of payment and contract cost proposal, approving payments;
• If new consultant personnel are added or substituted, labor rates must be verified prior to approving invoices.

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• Record keeping and reporting;
• Controlling costs;
• Identifying changes to the scope of work and preparation of amendments (must ensure that any changes to the scope is within the constraints of the original RFP/RFQ; • Completing the consultant performance evaluations (see Exhibit 10-S: Consultant Performance Evaluation).

Substitution of Consultant Personnel and Subconsultants After contract execution the consultant should not substitute key personnel (project manager and others listed by name in the cost proposal) or subconsultants without prior written approval from the LPA. Refer to LAPM Chapter 9: Civil Rights & Disadvantaged Business Enterprise and 49 CFR Part 26 for DBE substitution requirements. To do so can result in the costs being ineligible for federal or state reimbursement. The consultant must request and justify the need for the substitution and obtain approval from the LPA prior to use of a different subconsultant on the contract.

The proposed substituted person must be as qualified as the original, and at the same or lower cost. For engineering types of consultant contracts, the consultant’s project manager must be a registered engineer in the State of California.

Invoicing (or Progress Payments)
The frequency and format of the invoices/progress payments are to be determined by the contract. Program Supplement Agreements (see LAPM Chapter 3: Project Authorization) need to have been prepared prior to any payments being requested. Payments to the consultant are to be in arrears. In other words, the consultant must have actually incurred and paid the costs before invoicing the LPA.

For federal reimbursement of consultant costs on a project, the LPA must submit the following to the DLAE, for each consultant or consulting firm used on the project (failure to do so will result in the consultant’s invoices for reimbursement being returned to the agency unprocessed):
• Copy of Executed Consultant contract;
• Exhibit 10-O1: Consultant Proposal DBE Commitment
• Exhibit 10-O2: Consultant Contract DBE Commitment
• Copy of issued task order and Exhibit 10-O2 for the task order for on-call contracts.

DLAE must confirm that the LPA has submitted copies of Exhibit 10-K: Consultant Annual Certification of Indirect Costs and Financial Management System (for Prime and Subconsultants) to Caltrans IOAI and agency has submitted Exhibit 10-C: Consultant Contract Database to Caltrans.

The LPA is to follow the procedures given in LAPM Chapter 5: Invoicing, to obtain reimbursement of federal or state funds.

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Contract Amendments
Contract amendments are required to modify the terms of the original contract for changes such as extra time, added work, or increased costs. Only work within the original advertised scope of services must be added by amendment to the contract. The addition of work outside the original advertised scope will make that work ineligible for federal or state reimbursement (see Q&As).

There is no prescribed format for contract amendments. They may take the form of letter-type agreements meeting the legal requirements of the LPA, clearly outlining the changes and containing a mutually agreed upon method of compensation. Such agreements must conform to the requirements of this manual with regard to payment.

A consultant contract may be amended at any time prior to the expiration date of the original contract. The most common amendment is to extend the ending date of the contract. All contract amendments must be fully executed before the ending date of the contract by formal amendment. Failure to amend a contract prior to the ending date will make the subsequent costs ineligible for federal and state reimbursement. Task orders are not considered an amendment and therefore not appropriate to extend the terms of the contract.

All contract amendments must be negotiated following the same procedures as the negotiation of the original contract and must be in writing and fully executed by the consultant and LPA before reimbursable work begins on the amendment. For any additional engineering and design related services outside of the scope of work established in the original solicitation, a contracting agency must either procure the series under a new solicitation, perform the work itself using agency staff, or use a different, existing contract under which the services would be within the scope of work. Overruns in the costs of the work must not automatically warrant an increase in the fixed fee portion of a cost plus fixed fee reimbursed contract. Permitted changes to the scope of work or duration may warrant consideration for adjustment of the fixed fee portion of cost plus fixed fee or lump sum reimbursed contracts. If an emergency exists of such magnitude that a delay cannot be tolerated, the LPA and the consultant may agree on an amendment initiating the work, so that reimbursable work may begin. The initiating amendment is then followed by a final amendment once the full scope of the emergency work is known and agreed to by both parties. In both cases, sufficient funding should be included in the amendments to pay for all work to be performed by the consultant. The final amendment must be executed as quickly as possible. Failure to fully comply with this section may result in the loss of LPA funding. Section 10.1.3: A&E Consultant Audit and Review Process of this chapter must apply to the entire contract and must be completed prior to execution of the contract amendment. For contracts greater than or equal to $150,000, submit an Exhibit 10-A to IOAI for all amendments on consultant/subconsultant's name change, amending an ICR, or adding new subconsultant's ICR. ICRs that have not been accepted by IOAI are not eligible for federal or state reimbursement. For contracts with original amounts under $150,000 but subsequently became greater than or equal to $150,000 after amendment, IOAI Financial Document Review is not required. If there are any changes to the contract after submittal of Exhibit 10-C, the LPA must submit an updated Exhibit 10-C to https://dla.dot.ca.gov/fmi/webd/Exhibit%2010-C prior to the first invoice after the contract has been amended. Submission of Exhibit 10-C to Caltrans HQ is not required for non-A&E consultant contracts. All amendments must incorporate any current requirements of the federal regulations including the federal fiscal provisions and submit Exhibit 10-C to the Exhibit 10-C: A&E Consultant Contract Database prior to the first invoice after the contract has been amended (please use Firefox or Chrome if not supported by your browser).

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Performance Evaluation
Pursuant to 23 CFR 172.9(d)(2) agencies are required to prepare an evaluation of the consultant when the project has been completed. The Contract Administrator evaluates the consultant’s performance after the consultant’s final report has been submitted, and the Contract Administrator has conducted a detailed evaluation with the consultant’s project manager. See Exhibit 10-S: Consultant Performance Evaluation for a suggested format for use by the LPA.

Project Records
Federal-Aid Highway Program funding recipients and sub-recipients must maintain adequate and readily accessible project performance and financial records, supporting documents, and other records considered pertinent to the grant agreement and in compliance with federal laws and regulations (e.g., 23 USC 112; 40 USC 1101-1104, 23 CFR 172, 48 CFR 31, and 2 CFR 200). These records must be maintained for a minimum of three (3) years following issuance of the final voucher from FHWA (forwarded by Caltrans) and the closure of all other pending matters (2 CFR 200.333).

For audit purposes, project records and documentation must be kept for three (3) years after payment of the final federal or state voucher. Among the records to be retained are as follows (not an all-inclusive list):
• Copies of RFPs and RFQs, changes, addendums, etc. and bidder’s list; • Documentation of DBE participation (including Exhibit 10-O1: Consultant Proposal DBE Commitment, Exhibit 10-O2: Consultant Contract DBE Commitment), Exhibit 10-G:

Individual A&E Task Order DBE Tracking Sheet, Exhibit 17-F: Final Report – Utilization of DBE and First-Tier Subcontractors or Exhibit 17-F1: Final Report-Utilization of Disadvantaged Business Enterprise (DBE) for On-Call Contracts, and Exhibit 17-O: DBE Certification Status Change.
• Solicitation and advertisement records;
• Identification of selection committee members;
• Record of receiving proposals, statement of qualifications; • Evaluation and ranking records such as original score sheets from all panel members, short list questions and other documentation (see Exhibit 10-B: Suggested Consultant Evaluation Sheet);
• Independent cost estimate (prepared in advance of requesting a cost proposal from the top-ranked consultant);
• Record of negotiations (to include a separate negotiation of profit in accordance with federal guidelines);
• Financial Review Letter and Cognizant Agency Letter, when applicable; • CPA-audited ICR Audit Report or Approved State DOT Cognizant Indirect Rate Letter, if any;
• Consultant Certification of Costs and Financial Management (Exhibit 10-K: Consultant Annual Certification of Indirect Costs and Financial Management System) for contracts over $150,000 or more;

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• A&E Consultant Audit Request Letter and Checklist (Exhibit 10-A: Consultant Financial Document Review Request) for contracts at or over $150,000 and all supporting documentation.
• Executed consultant contracts, cost proposals and amendments (see Exhibit 10-R: A&E Boilerplate Agreement Language and Exhibit 10-H: Sample Cost Proposal); • Contract oversight and progress meeting documents;
• Progress and final payments, and supporting documentation; • Performance evaluation (see Exhibit 10-S: Consultant Performance Evaluation); • Consultant contract checklists (see Exhibit 10-C: A&E Consultant Contract Database); • Accounting records documenting compliance with State and federal administrative requirements;
• Certifications and Conflict of Interest forms (Exhibit 10-T: Conflict of Interest & Confidentiality Statement, all personnel involved in the procurement of the agreement should complete Exhibit 10-T Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement and Exhibit 10-Q: Disclosure of Lobbying Activities, as appropriate). Exhibit 10-Q is included in the solicitation and must be completed if the consultant needs to disclose any lobbying activities.

Retention Clauses
At the option of the LPA, a retention clause may be included in the consultant contract. A retention clause in the consultant contract is recommended (see Exhibit 10-R: A&E Boilerplate Agreement Language, Article VIII).

Review of Local Public Agency Actions
Federal-aid or state reimbursement is contingent on meeting the federal or state requirements and can be withdrawn, if these procedures are not followed and documented. The LPA files are to be maintained in a manner to facilitate future FHWA or Caltrans process reviews and audits.

As specified in the Review and Approval of Contracts above, the Contract Administrator must review the proposed consultant contract before execution.

Exhibit 10-C: A&E Consultant Contract Database is to be completed prior to award, or after contract award but no later than the first invoice. A copy of Exhibit 10-C must be retained in the LPA project files.

10.1.9 Miscellaneous Considerations
Agreements with Other Governmental Agencies
Intergovernmental or inter-entity agreements are encouraged if appropriate. If another governmental agency is requested to do work or provide services to an agency, an interagency agreement is needed. See 2 CFR 200 and CA Government Codes 10340 and 11256.

Small Purchase Contracts
Contracts that are less than $250,000 are considered small contracts in accordance with federal regulations. However, within the State of California, there is no recognized small purchase procedure and all A&E contracts are procured using qualifications based selection and not cost.

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For federal contracts that are less than $250,000 and are not anticipated to exceed this amount, the agency must use either Section 10.2: State-Only Funded A&E Contracts or the federal guidance for contracts greater than $250,000. If the contract is anticipated to exceed $250,000, use one of the accepted procurement procedures listed in the previous sections. Small contracts using the simplified acquisition procedure (State-Only funded section) must not exceed $250,000 or the additional costs are considered not reimbursable. The entire contract could also be considered ineligible by FHWA depending on circumstances. The scope of work, project phases, and contract requirements must not be broken down into smaller components to permit the use of small purchase procedure. DBE requirements apply for all federally funded projects.

Noncompetitive Negotiated Contracts (Sole-Source)
Procurement by noncompetitive proposals may be used only when the award of a contract is infeasible under sealed bids or competitive proposals (23 CFR 172.7(a)(3)).

FHWA considers these types of contracts as Sole Source contracts and should be used only in very limited circumstances. An Exhibit 12-F prepared by the LPA and approved by Caltrans is required before establishing these services (23 CFR 172.7(a)(3); also see Exhibit 12-F: CostEffectiveness/Public Interest Finding/A&E Noncompetitive.

Conditions under which noncompetitive negotiated contracts may be acceptable include:
• Only one organization is qualified to do the work;
• An emergency exists of such magnitude that cannot permit delay; • Competition is determined to be inadequate after solicitation of a number of sources.

The LPA must:
• Follow its defined process for noncompetitive negotiation; • Develop an adequate scope of work, evaluation factors, and cost estimate before solicitation;
• Conduct negotiations to ensure a fair and reasonable cost.

The LPA must carefully document details of the special conditions, obtain Caltrans approval on the Exhibit 12-F and retain all documents in the project files for future Caltrans’ or FHWA’s review.

Retaining a Consultant as an Agency Engineer or in Management Support Role An LPA may retain qualified consultants in a management support role on its staff in professional capacities for federal-aid projects such as:
• A City Engineer (or equivalent) who manages the engineering unit for the city, providing oversight of a project, series of projects, managing or directing work of other consultants or contractors on behalf of the City.
• A County Engineer (or equivalent) who manages the engineering unit for the county such as duties described above.
• A Project Manager (or equivalent) who manages and oversees a project, series of projects or the work of other consultants and contractors on behalf of the public agency.

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• A Program Manager (or equivalent) who manages and oversees an element of a highway program, function, or service on behalf of the public agency.

However, typically a consultant in a management support role is not:
• A consultant engineer performing project-specific design, and/or construction contract administration and construction engineering for the public agency. • A consultant providing support to administrative duties such as federal authorization process, labor compliance activities, and other management and administrative tasks.

The use of a consultant in a management support role should be limited to unique or very unusual situations. These situations require a thorough justification as to why the LPA cannot perform the management. Consultants used in management support roles must be selected using the same procedures as those for other consultants specified in this chapter. Consultants in a Management Support Role funded by local or state funds must have approval from FHWA to be considered qualified to manage federal projects or consultants providing services on federal projects.

Eligibility for federal or state reimbursement for a consultant in a management support role requires the following:
• Compliance with the selection procedures specified in this chapter; • Existence of a contract between the LPA and the consultant specifying the LPA engineering services to be performed;
• Written designation by the LPA of the responsibilities and authority of the consultant as an agency engineer;
• For a federal-aid project, completion of Exhibit 10-T: Conflict of Interest & Confidentiality Statement by all members (both consultants and employees) prior to participating in the Architect & Engineering (A&E) Selection Panel pertaining to the specific selection process and the firms being considered;
• Selection of consultants for A&E management positions must be by the use of qualification-based selection procedures on an open and competitive basis resulting in a contract with defined beginning and ending dates not to exceed five (5) years; • For a federal-aid project, an LPA consultant in a management support role must not:
o Participate in, or exercise authority over the A&E selection process, if that consultant’s firm is one of the proposing firms, or subconsultant to a proposing firm;
o Participate in, or exercise authority over management of work performed by the consultant’s firm, or to a consultant’s firm of which the LPA consultant firm is a subconsultant. This would include, but not be limited to, managing or directing the work, approving changes in the schedule, scope, or deliverables; and approving invoices.
o Apply for or receive reimbursement of federal-aid funds for the LPA’s federal-aid project if either of the foregoing has occurred. However, reimbursement for the construction contract portion of the project will still be allowed provided all other federal-aid requirements have been met.

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o Where benefiting more than a single federal-aid project, allocability of consultant contract costs for services related to a management support role must be distributed consistent with the cost principles applicable to the contracting agency in 23 CFR 172.7(b)(5).

If engineering services for a project are within the scope of the services described in the retained consultant’s contract, these services may be performed by the person or firm designated as an agency engineer. If the services are not within the scope, eligibility for federal reimbursement for these services require a new consultant contract to be developed using the selection procedures in this chapter. Retained consultants involved in the preparation of the RFP or RFQ must not be considered in the selection of consultants for the resulting project specific work.

When engineering or architectural consultants in a management support role are procured with federal-aid funds, the LPA (subgrantee) must fully comply with the following:
• Subparagraphs of 2 CFR 200.318 maintain a contract administration system and maintain a written code of standards. No employee, officer or agent of the subgrantee must participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. • Subparagraph of 23 CFR 172.7(b) requires that the LPA must receive approval from FHWA. In addition, any federal-aid projects designated as Projects of Division Interest may also need approval from FHWA.
• Liability insurance should normally be required from the consultant (errors and omissions, etc.).

For federally funded projects, LPAs that solicit to hire A&E consultant(s) in a management support role must obtain FHWA approval prior to contract execution.

In order for a contract for a consultant in a management support role to be federally eligible, the following are required prior to contract execution:
• The LPA must submit a request for approval via email, the Scope of Work (SOW) and Conflict of Interest (COI) Policy to the Division of Local Assistance-Headquarters (DLAHQ) at [email protected], prior to solicitation. • Once the LPA receives FHWA’s written response, the LPA may need to revise the documents reflecting FHWA’s opinions and can proceed with the RFQ. • After consultant selection, the LPA must submit the completed Exhibit 10-U: Consultant in Management Support Role Conflict of Interest and Confidentiality Statement to the DLA-HQ at [email protected]. LPA will receive FHWA’s approved Exhibit 10-U via email.

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Figure 10-5: Consultant in a Management Support Role Flowchart Construction Engineering Services
Under federal-aid regulations and state policy, the primary responsibility for general supervision of construction must remain with the LPA. The LPA must also ensure that the work is performed in accordance with the approved plans and specifications, by employing or retaining as a consultant a registered engineer for construction engineering services on the project.

All construction engineering activities performed by a consultant must be under the overall supervision of a full-time employee of the agency who is in responsible charge. These activities may include preparation of contract change orders, construction surveys, foundation investigations, measurement, and computation of quantities, testing of construction materials, checking of shop drawings, preparation of estimates, reports, and other inspection activities necessary to ensure that the construction is being performed in accordance with the plans and specifications. The construction engineering consultant’s contract defines the relative authorities and responsibilities of the full-time employee of the LPA in charge of the project and the consultant’s construction engineering staff.

If a technical inspection consultant is to provide professional assistance to the LPA, a formal consultant contract must be executed which follows this chapter’s requirements. The contract must provide for reviews at appropriate stages during performance of the work to determine if any changes or other actions are warranted. These reviews are to be made by the LPA.

10.1.10 Program Management
According to 23 CFR 172.5, LPAs are required to adopt written policies and procedures prescribed by Caltrans. As such, the LPA must adopt Caltrans Local Assistance Chapter 10:

Consultant Selection, which contain the A&E policies and procedures.

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To meet this requirement, LPAs are required to email and provide one of the following documents to the DLA Office of Guidance and Oversight (OGO) at [email protected]:

1. A Board Resolution showing that the LPA is adopting Caltrans LAPM Chapter 10; OR

2. An official letter signed by the LPA’s Public Works Director or equivalent manager addressed to the DLA OGO Office Chief, stating that the agency is adopting Caltrans LAPM Chapter 10
The DLA A&E website includes an example of the adoption resolution and letter. These examples are for reference only; the appropriate language to be used is determined by the individual agency.

LPAs are responsible for providing all resources necessary for the procurement, management, and administration of A&E consultant contracts including subcontracts. Ensuring consultant costs billed are allowable in accordance with the Federal cost principles and consistent with the contract terms as well as the acceptability and progress of the consultant's work; • Monitoring the consultant's work and compliance with the terms, conditions, and specifications of the contract;
• Preparing a consultant's performance evaluation when services are completed and using such performance data in future evaluation and ranking of consultant to provide similar services;
• Closing-out a contract;
• Retaining supporting programmatic and contract records, as specified in 2 CFR 200.333 and the requirements of this part;
• Determining the extent to which the consultant, which is responsible for the professional quality, technical accuracy, and coordination of services, may be reasonably liable for costs resulting from errors and omissions in the work furnished under its contract; • Assessing administrative, contractual, or legal remedies in instances where consultants violate or breach contract terms and conditions, and providing for such sanctions and penalties as may be appropriate; and
• Resolving disputes in the procurement, management, and administration of engineering and design related consultant services.

10.1.11 References
2 CFR Part 200
http://www.ecfr.gov/cgi-bin/textidx?SID=eb0db4a32ce93fdc5815e6fe58791d9d&mc=true&tpl=/ecfrbrowse/Title02/2cfr200_main_02.t pl
2 CFR Part 215 Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations https://www.govinfo.gov/app/details/CFR-2012-title2-vol1/CFR-2012-title2-vol1-part215/context 23 USC Letting of Contracts
http://www.fhwa.dot.gov/map21/docs/title23usc.pdf

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23 CFR, Part 172 Administration of Engineering and Design Related Service Contracts http://www.ecfr.gov/cgi-bin/text-idx?rgn=div5&node=23:1.0.1.2.3 40 USC, Section 1104 Brooks Act
https://www.govinfo.gov/app/details/USCODE-2011-title40/USCODE-2011-title40-subtitleIchap11/context 41 CFR Public Contracts and Property Management
http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title41/41tab_02.tpl 41 USC Public Contracts
https://www.govinfo.gov/content/pkg/USCODE-2009-title41/html/USCODE-2009-title41.htm 48 CFR, Chapter 1, Subpart 15.404
https://www.acquisition.gov/far/part-15
48 CFR, Chapter 1, Part 31
https://www.acquisition.gov/far/part-31
48 CFR, Chapter 1, Part 16 – Types of Contracts
https://www.acquisition.gov/far/part-16
48 CFR 27, Chapter 1, Subpart 27.3 – Patent Rights under Government Contracts https://www.acquisition.gov/far/part-27
48 CFR, Chapter 1, Subpart 31.201-3 – Determining Reasonableness https://www.acquisition.gov/far/part-31
48 CFR, Chapter 99 – Cost Accounting Standards, Part 9904 https://www.acquisition.gov/chapter_99
49 CFR, Part 26 Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs
http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title49/49cfr26_main_02.tpl American Association of State Highway and Transportation Officials (AASHTO) Uniform Audit and Accounting Guide
https://audit.transportation.org/
Caltrans Division of Procurement and Contracts Website
http://www.dot.ca.gov/dpac/index.html
California Labor Code, Section 1775
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=1775 Government Auditing Standards (GAS) issued by the United States Government Accountability Office
http://www.gao.gov/yellowbook/overview
Government Code Sections 4525 through 4529.5 and Sections 4529.10 through 4529.20 https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=5.&title=1.& part=&chapter=10.&article=

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https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=5.&title=1.& part=&chapter=10.1.&article=
Standard Environmental Reference (SER)
http://www.dot.ca.gov/ser/

10.2 STATE-ONLY FUNDED A&E CONTRACTS
A&E
State-Only
Division of Local Assistance Minimum Requirements
for State-only funded A&E Contracts
A. Written Procedures
B. Conflict of Interest
C. Records
D. Full & Open Competition
E. Selection Basis
F. Publication
G. Solicitation
H. Cost Analysis
I. Negotiations
J. Audit and Review Process
K. Exhibit 10-C: A&E Consultant Contract Database

10.2.1 General
LPAs are required to follow all applicable local and state regulations including those listed in LAPM Chapter 10 in accordance with their State Master Agreement. Although the requirements listed in this section are minimum requirements, the LPA must use good engineering judgment and best practices to document their processes and procedures when procuring A&E contracts utilizing qualifications based selections.

LPAs using local funds to procure an A&E Consultant on a state-only funded project and will not seek state reimbursement for consultant cost may choose not to follow the selection and contracting procedures detailed in Section 10.2 of this chapter.

All consultants must comply with 48 CFR 31: Contract Cost Principles and Procedures.

Also, consultants and LPAs must comply with 2 CFR 200: Uniform Administrative

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Requirements, Cost Principles, and Audit Requirements for Federal Awards, excluding sections 200.318-200.326 Procurement Standards (reference Federal Highway Administration December 4, 2014 Memorandum Action: 2 CFR 200 Implementation Guidance).

Agency state-only funded (SOF) agreements must contain the required federal fiscal provisions from 2 CFR 200 in all Division of Local Assistance funded agreements.

Exhibit 10-R: A&E Boilerplate Agreement Language contains 2 CFR 200 requirements and may also be used in SOF agreements. Depending upon the scope of work, the required contract provisions may need to include the California State Prevailing Wages.

All proposed A&E contracts and supporting documents (including state-only funded) are subject to audit or review by Caltrans’ Independent Office of Independent Office of Audits and Investigations (IOAI), other state audit organizations, or the federal government and required to follow LAPM Section 10.1.3 A&E Consultant Audit and Review Process.

For consultant contracts, procured with local or state funds, to provide services for federal-aid projects, or to oversee or manage other consultants providing these services, the Consultant in Management Support Role process must be completed to be eligible for reimbursement. Refer to Section 10.1.9 Miscellaneous Considerations:

Retaining a Consultant as an Agency Engineer or in a Management Support Role.

DBE contract goals are not required for state-only funded contracts.

This guidance is for contracts utilizing state funds only. If any federal funds are added or reimbursed, the federal process must be followed.

Non-A&E consultant contracts reference Section 10.3: Non-A&E Contracts.

Reference: California Government Code Title 1, Division 5, Chapter 10, Contracts with Private Architects, Engineering, Land Surveying, and Construction Project Management Firms §4525-4529.5.

10.2.2 Definition of A&E
Architectural, landscape architectural, engineering, environmental, and land surveying services includes those professional services of an architectural, landscape architectural, engineering, environmental, or land surveying nature as well as incidental services that members of these professions and those in their employ may logically or justifiably perform.

Construction project management means those services provided by a licensed architect, registered engineer, or licensed general contractor. Any individual or firm proposing to provide construction project management services must provide evidence that the individual or firm and its personnel carrying out onsite responsibilities have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, costbenefit analysis, claims review and negotiation, and general management and administration of a construction project.

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Environmental services mean those services performed in connection with project development and permit processing in order to comply with federal and state environmental laws.

Reference: California Government Code §4527

10.2.3 Minimum Audit Requirements
A. Written Procedures
Local agencies shall follow the minimum requirements listed below in addition to any local laws and regulations.

Reference: California Government Code §4526
B. Conflict of Interest
The LPA must develop and maintain a written code of conduct governing the performance of its employees engaged in the award and administration of state funded contracts, including the prevention of conflicts of interest.

References:

California Government Code §4526
California Government Code §1090
California Government Code §4529.12
C. Records
Local agencies shall keep adequate records of all contracts including the procurement, project management, accounting and financial administration.

References:

California Government Code §4529.14
California Government Code §4006
D. Full & Open competition
All A&E contracts shall be procured through a qualifications-based selection utilizing open and fair competition. Evaluate at least three consultants using published evaluation criteria and rank these firms in order of preference. If less than three consultants are evaluated, provide justification for agency file.

References:

California Government Code §4526
California Government Code §4527
E. Selection Basis
Selection of a firm shall be based on qualifications and the order of ranked preference.

References:

California Government Code §4526
California Government Code §4527
F. Publication
Solicitations for A&E contracts shall be in a manner that is open and competitive.

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Reference: California Government Code §4527
G. Solicitation
The solicitations shall include published evaluation criteria to rank in order of preference. Clearly define expectations in the solicitation in order to evaluate firms.

Reference: California Government Code §4527
H. Cost Analysis
An independent cost comparison to the consultant’s cost proposal shall be done in order to ensure the contract is negotiated at a fair and reasonable price.

Reference: California Government Code §4528
I. Negotiations
Negotiations must be documented to verify a fair and reasonable contract has been executed using public funds.

Reference: California Government Code §4528
J. Audit and Review Process
A&E contracts procured by public agencies shall be subject to standard accounting practices and may require financial and performance audits. All agencies shall follow the Audit and Review Process as stated in Section 10.1.3: A&E Consultant Audit and Review Process.

Exhibit 10-A: A&E Consultant Financial Document Review Request.

Reference: California Government Code §4529.14
K. Exhibit 10-C: A&E Consultant Contract Database
Exhibit 10-C: A&E Consultant Contract Database must be completed at https://dla.dot.ca.gov/fmi/webd (please use Firefox or Chrome if not supported by your browser) prior to contract award, or after contract award but no later than the first invoice for all new state-only funded A&E consultant contracts.

If there are any changes requiring an amendment to the contract after submittal of Exhibit 10-C, the LPA must submit an updated Exhibit 10-C to https://dla.dot.ca.gov/fmi/webd/Exhibit%2010- C prior to the first invoice after the contract has been amended. Submission of Exhibit 10-C to Caltrans HQ is not required for non-A&E consultant contracts

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CA Government Code References
California GOV §1090
(a) Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity. (b) An individual shall not aid or abet a Member of the Legislature or a state, county, district, judicial district, or city officer or employee in violating subdivision (a).
(c) As used in this article, “district” means any agency of the state formed pursuant to general law or special act, for the local performance of governmental or proprietary functions within limited boundaries.

California GOV §4006
Plans, specifications, work authorizations describing work to be performed, and all other information referred to in this chapter are open to inspection and examination as a public record.

California GOV §4525
For purposes of this chapter, the following terms have the following meaning:
(a) “Firm” means any individual, firm, partnership, corporation, association, or other legal entity permitted by law to practice the profession of architecture, landscape architecture, engineering, environmental services, land surveying, or construction project management.
(b) “State agency head” means the secretary, administrator, or head of a department, agency, or bureau of the State of California authorized to contract for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services. (c) “Local agency head” means the secretary, administrator, or head of a department, agency, or bureau of any city, county, city and county, whether general law or chartered, or any district which is authorized to contract for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services.
(d) “Architectural, landscape architectural, engineering, environmental, and land surveying services” includes those professional services of an architectural, landscape architectural, engineering, environmental, or land surveying nature as well as incidental services that members of these professions and those in their employ may logically or justifiably perform.
(e) “Construction project management” means those services provided by a licensed architect, registered engineer, or licensed general contractor which meet the requirements of Section 4529.5 for management and supervision of work performed on state construction projects. (f) “Environmental services” means those services performed in connection with project development and permit processing in order to comply with federal and state environmental laws. “Environmental services” also includes the processing and awarding of claims pursuant to Chapter 6.75 (commencing with Section 25299.10) of Division 20 of the Health and Safety Code.

California GOV §4526
Notwithstanding any other provision of law, selection by a state or local agency head for professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. In order to implement this method of selection, state agency heads contracting for private architectural, landscape architectural, professional engineering, environmental, land surveying, and construction project management services shall adopt by regulation, and local agency heads contracting for private architectural, landscape architectural, professional engineering, environmental, land surveying, and construction project management services may adopt by ordinance, procedures that assure that these services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the public agencies. Furthermore, these procedures shall assure maximum participation of small business firms, as defined by the Director of General Services pursuant to Section 14837.

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In addition, these procedures shall specifically prohibit practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit government agency employees from participating in the selection process when those employees have a relationship with a person or business entity seeking a contract under this section which would subject those employees to the prohibition of Section 87100.

California GOV §4527
In the procurement of architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services, the state agency head shall encourage firms engaged in the lawful practice of their profession to submit annually a statement of qualifications and performance data. (a) When the selection is by a state agency head, statewide announcement of all projects requiring architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services shall be made by the agency head through publications of the respective professional societies. The agency head, for each proposed project, shall evaluate current statements of qualifications and performance data on file with the agency, together with those that may be submitted by other firms regarding the proposed project, and shall conduct discussions with no less than three firms regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the required services and then shall select therefrom, in order of preference, based upon criteria established and published by him or her, no less than three of the firms deemed to be the most highly qualified to provide the services required. (b) When the selection is by a local agency head, the agency head may undertake the procedures described in subdivision (a). In addition, these procedures shall specifically prohibit practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit government agency employees from participating in the selection process when these employees have a relationship with a person or business entity seeking a contract under this section.

California GOV §4528
(a) When the selection is by a state agency head the following procedures shall apply:
(1) The state agency head shall negotiate a contract with the best qualified firm for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services at compensation which the state agency head determines is fair and reasonable to the State of California or the political subdivision involved.
(2) Should the state agency head be unable to negotiate a satisfactory contract with the firm considered to be the most qualified, at a price the agency head determines to be fair and reasonable to the State of California or the political subdivision involved, negotiations with that firm shall be formally terminated. The state agency head shall then undertake negotiations with the second most qualified firm. Failing accord with the second most qualified firm, the state agency head shall terminate negotiations. The state agency head shall then undertake negotiations with the third most qualified firm. (3) Should the state agency head be unable to negotiate a satisfactory contract with any of the selected firms, the state agency head shall select additional firms in order of their competence and qualification and continue negotiations in accordance with this chapter until an agreement is reached. (b) When the selection is by a local agency head, the local agency head may undertake the procedures described in subdivision (a).

California GOV §4529
This chapter shall not apply where the state or local agency head determines that the services needed are more of a technical nature and involve little professional judgment and that requiring bids would be in the public interest.

California GOV §4529.12
All architectural and engineering services shall be procured pursuant to a fair, competitive selection process which prohibits governmental agency employees from participating in the selection process when they have a financial or business relationship with any private entity seeking the contract, and the procedure shall require compliance with all laws regarding political contributions, conflicts of interest or unlawful activities.

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California GOV §4529.14
Architectural and engineering services contracts procured by public agencies shall be subject to standard accounting practices and may require financial and performance audits as necessary to ensure contract services are delivered within the agreed schedule and budget.

California GOV §4529.20
This act seeks to comprehensively regulate the matters which are contained within its provisions. These are matters of statewide concern and when enacted are intended to apply to charter cities as well as all other governmental entities.

Federal Highway Administration Memorandum 2 CFR Part 200 Implementation Guidance 12/4/2014
Attachment A: FHWA 2 CFR Part 200 Uniform Guidance – Questions and Answers Question 21: “Will the FHWA/USDOT provide a waiver of the requirements in 2 CFR 200.317 for subrecipients to comply with State procurement requirements or other policies and procedures approved by the State (200.317)?” Answer: Yes. The USDOT requested and received an OMB waiver of the requirements in 2 CFR 200.317 concerning procurement by subrecipients. This waiver provides an exception to the requirement for all subrecipients of a state to follow the procurement requirements in Sections 200.318 through 200.326. The waiver will allow States and subrecipients to continue to use state-approved procurement procedures as they did under part 18 prior to the adoption of the Uniform Guidance.

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Figure 10.2 State-Only Funded Procurement Criteria

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To comply with CA Government Code (GC) 4525-4529.5, 48 Code of Federal Regulations (CFR) Part 31: Contract Cost Principles and Procedures, 2 CFR Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (excluding sections 200.318-200.326), Caltrans Local Assistance Procedures Manual (LAPM) and other applicable STATE and FEDERAL regulations.

A.

B.

C.

D.

E.

F.

G.

H.

I.

J.

K.

A&E Consultants
Requirements for LGAs that use State funding Use State requirements below Written Procedures GC4526
Conflict of Interest GC 1090, GC 4527(b), GC 4529.12
Records GC 4529.14, 4006
Full & Open Compet it ion GC 4526, GC 4527, GC 4529.12
Select ion Basis GC 4526*, 4527
Publication GC4527
Solicitat ion GC4527
Cost Analysis GC4528
Negot iations GC4528
A&I Audit & Review Process GC 4529.14, LAPM Ch. 10, 2 CFR 200 Exhibit 10-C: A&E Consultant Contract Database LAPM Ch. 10.2 •Mini Brooks Act - State regulation requiring the initial selection of engineering and architecture firms be based upon qualifications and experience rather than by price. Price is t hen later negotiated.

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10.3 NON-A&E CONTRACTS
Scope
This section covers the procurement requirements for the services that are not included in Section 10.1 Federally Funded A&E Contracts and Section 10.2 State-Only Funded A&E Contracts. This guidance is for contracts utilizing federal-aid funds and state funds. Federal regulations refer to state and local regulations for non-A&E type contracts. Although LPAs are required to follow 2 CFR 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for all contracts, the Procurement Standards section 200.318- 200.326 is exempt. The guidance in this section follows the established regulations in the California Public Contract Code. Depending upon the scope of work, the required contract provisions may need to include the California State Prevailing Wages.

LPA must designate one person within the LPA as a contract manager. (PCC 10348.5)
LPAs using local funds to procure non-A&E Consultants on a federal-aid funded or state-only funded project and will not seek federal or state reimbursement for consultant cost may choose not to follow the selection and contracting procedures detailed in Section 10.3 of this chapter.

Determining Non-A&E
After identifying that there is a need for consulting services, the LPA must determine that the services needed are more of a technical nature and involve minimal professional judgement and that requiring a cost proposal would be in the public’s best interest. These type of consultant services that are not directly related to a highway construction project or that are not included in the definition of engineering and design related services are considered non-A&E. The services must not be included in Section 10.2.2 Definition of A&E.

The determining factor is whether the services being procured are related to a specific construction project and whether the services require work to be performed, provided by, or under the direction of a registered engineer or architect.

Example of Determining Non-A&E
Material testing has been requested to ensure quality assurance on a construction project. The service includes only performing the material test and providing material test data. Although the service is related to a construction project, the overall service did not provide an evaluation or a discipline report. In this example, the LPA can determine that the service provided is more of a technical nature and is therefore a non-A&E service.

The following is a list of the more common non-A&E services:
• Right-of-Way Appraisal
• Right-of Way acquisition activities
• Conducting public outreach during environmental clearance or construction • Active Transportation Program educational and outreach activities • Intelligent Transportation System (ITS)
• Non-Infrastructure

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• Local Roadway Safety Plan (LRSP) associated with Highway Safety Improvement Program (HSIP)-funded projects
Intelligent Transportation System (ITS) Projects
Intelligent Transportation System (ITS) means electronic, communications, or information processing used singly or in combination to improve the efficiency or safety of a surface transportation system. ITS projects are those that in whole or in part, funds the acquisition of technologies or systems of technologies that provide significant contributions to the provision of one or more ITS user services as defined in the National ITS Architecture.

The federal-aid procurement regulations identify three possible contract procurement procedures for ITS projects including engineering and design related services (A&E), construction, and non-engineering/non-architectural (non-A&E).

If ITS projects include physical installation of field devices and/or communications infrastructure, such as new traffic signals, new controller cabinets, changeable message signs, radio and computers, vehicle detectors, and conduits for cabling in the roadway, then that work and required equipment usually meets the definition of construction. The construction contract must be procured based on competitive bidding. If the ITS project involves software development, system integration, hiring engineers and specialists for ITS design and installation support, inspection, design documentation, training and deployment, it may be considered an engineering and design services contract and the contract must be procured as an A&E consultant contract. If the scope of work is unclear as to whether it is an A&E type of work, contact [email protected] for assistance.

However, if an ITS project does not meet either the definition of construction or engineering and design services, then the contract may be considered to be a non-A&E consultant contract.

Examples of non-A&E consultant contracts are:
• The procurement of hardware and software associated with incident management system;
• Software systems for arterial and freeway management systems; • Operating the 511 traveler information service;
• Nonprofessional services for system support such as independent validation and verification, testing and specification development;
For more information regarding Intelligent Transportation Systems (ITS) Program procurement requirements, refer to LAPG Chapter 13: Intelligent Transportation Systems.

Non-Infrastructure Projects
Non-infrastructure (NI) projects are those transportation-related projects that do not involve either engineering design, Right-of-Way acquisition (for additional guidance refer to LAPM Chapter 13), or the eventual physical construction of transportation facilities.

Procurement of non-A&E consultant contracts associated with non-infrastructure projects must follow Non-A&E procurement procedures described in this chapter. For more information on NI projects, refer to LAPM Chapter 3: Project Authorization.

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Governing Regulations and Codes for Non-A&E
When procuring non-A&E services with federal-aid funds, LPAs must comply with 2 CFR 200:

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, excluding sections 200.318-200.326 Procurement Standards (reference Federal Highway Administration December 4, 2014 Memorandum Action: 2 CFR 200 Implementation Guidance, Attachment A). LPAs must follow the same policies and procedures that the State uses for procurement with its non-Federal funds. When procuring non-A&E services with federal-aid and state-only funds, the governing procurement code is Public Contract Code 10335-10381.

Procurement of Non-A&E Consultant Contracts
All non-A&E procurements contracts must be conducted in a manner providing full and open competition consistent with federal and state standards. LPA must meet the code of conduct governing the performance of its employees engaged in the award and administration of federal-aid and state-funded contracts, including the preventions of conflict of interest in PCC 10410.

The following are the fundamental rules when procuring a non-A&E consultant contract.

1. The request for proposal (RFP) must not limit the competition directly or indirectly to any one consultant. The RFP must be publicized, and all evaluation factors and their relative importance identified (PCC 10339).

2. Splitting a single transaction into a series of transactions for the purpose of evading the procurement requirements is not allowed (PCC 10329).

3. LPA must secure at least three competitive proposals for each contract. (PCC 10340) When receiving less than three proposals, refer to the Cost-Effective/Public Interest Finding in this section as an alternative to re-advertisement.

4. No proposals must be considered which have not been received at the place, and prior to the closing time as stated in the RFP (PCC 10344(a)).

5. LPA must have a written procedure for evaluating proposals (PCC 10344).

RFP Basic Requirements
There are two general types of consulting service contract solicitations:

A. Request for Proposal using Cost only
B. Request for Proposal using Cost and Qualifications
The LPA must include the following in the request for proposal:

A. A clear, precise description of the work to be performed or services to be provided.

B. Description of the format that proposals must follow and the elements they must contain.

C. The standards the agency will use in evaluating proposals. This includes qualifications and certifications if applicable.

D. The date the proposals are due.

E. The procurement schedule that the LPA will follow in reviewing and evaluating the proposals.

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(PCC 10344)
Additional Requirements and Evaluation Criteria
Additional Requirements for Request for Proposal using Cost only A. LPA must require consultants to submit their proposals and cost in a separate, sealed envelope.

B. LPA must determine those that meet the format requirements and the standards specified in the request for proposal.

C. The sealed envelopes containing the price and cost information for those proposals that meet the format requirements and standards must then be publicly opened and read.

D. Contract must be awarded to the lowest responsible consultant meeting the standards. (PCC 10344(b))
Additional Requirements for Request for Proposal using Cost and Qualifications A. LPA must include in the proposal the description of the evaluation and scoring method.

Substantial weight in relationship to all other criteria utilized must be given to the cost amount proposed by the consultant.

B. LPA must determine those that meet the format requirements specified in the RFP.

C. LPA evaluation committee must evaluate and score the proposals using the methods specified in the RFP. All evaluation and scoring sheets must be available for public inspection after the committee scoring process. Evaluation committee should comply to the prevention of conflict of interest in PCC 10410.

D. The non-A&E contract must be awarded to the consultant whose proposal is given the highest score by the evaluation committee.
(PCC 10344(c))
When using RFP (Cost and Qualifications), the criteria used to evaluate the consultant’s proposals must have a logical foundation within the scope of work or within other technical requirements contained in the RFP. Each criterion must have a weight or level of importance, and it is recommended that total possible score for the evaluation criteria be one hundred (100) points. The proposed cost should be at least thirty percent (30%) of total points in evaluation criteria.

An example RFP for non-A&E is provided on the Local Assistance website at https://dot.ca.gov/- /media/dot-media/programs/local-assistance/documents/ae/files/rfp-example-non-ae.docx and may be modified.

Submission of Exhibit 10-C: A&E Consultant Contract Database to Caltrans HQ is not required for non-A&E consultant contracts.

Consultant’s Proposal
The consultant’s proposal should include the following information:
• Consultant Project Manager – qualifications, roles and responsibilities.

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• Methodology - description of work and overall approach, specific techniques that will be used and specific administrative and operations expertise to be used. • Workplan and Work Schedule - the technical proposal should include activities and tasks, and their delivery schedule.
• Personnel - List of personnel who will be working on the project, and their resumes. • Facilities and resources (If applicable) - Explanation of where the services will be provided and what type of equipment is needed to perform services. • Sub-contracts - Identify all sub-contracts that are to be used, description of each and the work by each sub-consultant/sub-contractor. No work must be subcontracted unless listed in the technical proposal. Sub-consultant resumes should be provided. • References - The technical proposal should provide at least three (3) clients for whom the proposer has performed work of similar nature to the request.

Cost Proposal Worksheet
The RFP should provide a standard format for cost proposal that all proposers must include in their proposal. The cost proposal format can be broken down by specific tasks, showing hourly labor rates, level of effort and material, and/or by milestones and deliverables.

LPA is not required to award a contract if it is determined that the contract price is not reasonable (PCC 10340(c)).

DBE Consideration
DBE consideration is required on all federal-aid funded contracts including non-A&E.

Administrative Requirements
Advertisement for RFPs may be through the LPA website, local publications, and national publications. Minimum solicitation time is 14 calendar days. The solicitation should inform potential qualified consultants that questions must be submitted in writing to the Agency Contract Manager/Administrator by a specified date and time. All pertinent technical information and answers to consultant’s questions must be provided to all potential consultants. Written responses to all questions will be collectively compiled and provided as an addendum.

A proposal may be considered nonresponsive and rejected without evaluation if all required information is not provided. Proposals without information regarding, or not meeting, the required DBE utilization goal or without a Good Faith Effort documentation (see Exhibit 15-H:

Proposer/Contractor Good Faith Efforts), late submittals, submittals to the wrong location, or submittals with inadequate copies are considered nonresponsive and must be rejected.

Submittal of additional information after the due date must not be allowed. Documentation of when each proposal was received must be maintained in the project files. Copies of date stamped envelope covers or box tops are recommended.

No consultant who has been awarded a consulting service contract may be awarded a subsequent contract for the services or goods which are required as an end product of the consulting service contract, unless the subcontract is no more than 10 percent of the total monetary value of the consulting services contract. Excludes A&E contracts. (PCC 10365.5)

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Contracts may be modified or amended only if the contracts so provide. Amendments must be requested and executed prior to the termination date of the most recently approved original or amended contract. All records of contract activities must be kept for three years after federal final voucher E-76 or state final voucher for State-Only funds. Costs are reimbursable after state allocation by the California Transportation Commission (CTC) and/or the issuance of the federal E-76. The per diem rate must not exceed the state rate. Contract Managers are responsible for monitoring expenditures on all contracts and verifying categories of work that require prevailing wage. A person in Responsible Charge of contract management is required for all federally funded projects.

Oral Presentations Optional
When oral presentations are required by the LPA, the evaluation criteria must include factors/sub-factors and weights used to score the proposers performance at the oral presentation. The evaluation committee will only be able to score each proposer based upon these criteria. The Contract Manager/Administrator should develop a set of questions related to the scope of work or the project to be asked during the evaluation committee question and answer (Q & A) section of the oral presentations. All proposers are asked the same questions for consistency.

The committee must also evaluate reference checks and other information gathered independently. Reference checks must be completed, and other information gathered before the interviews are conducted. If necessary, the results of the reference checks or other information may be discussed with the highest ranked qualified consultants at the interviews.

Cost-Effective / Public Interest Finding
A minimum of three proposal must be evaluated to establish effective competition. Any agency that has received less than three proposals on a contract must document the names and addresses of the firms or individuals it solicited for proposals. Prepare an explanation as to why less than three proposals were received. When only two proposals are received, a justification must be documented to proceed with the procurement. When only one proposal is received, a Non-Competitive process must be justified and a Public Interest Finding (PIF) (Exhibit 12-F:

Cost-Effective/Public Interest Finding/A&E Noncompetitive) must be documented. In either case, the re-advertisement of the RFP should be considered as an option. Retain document as supporting documentation in the contract file.
(PCC 10340(c))
Protest / Appeals / Reinstatement Procedures
Both state and federal regulations require well-defined protest/reinstatement procedures. It is essential that the procedures include a reasonable opportunity for the prospective consultant to present his/her case. The appeals procedures strengthen the process by which the contracting agency reaches its ultimate goal and helps defends its action against a claim of lack of due process. A termination clause and a provision for settlement of contract disputes are required.

Protest procedures and dispute resolution processes should be in accordance with PCC 10345.

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10.4 A&E OVERSIGHT PROGRAM AND PROCESS REVIEW
General
The A&E Oversight Branch is responsible for the oversight of consultant contracts procured by LPAs complying with federal regulations 23 CFR 172 and 23 USC 112, and state regulations California Government Code 4525.

For locally administered federal-aid highway projects, A&E consultant contract oversight reviews will be performed by Caltrans’ Local Assistance A&E Oversight Engineers (A&EOEs). DLAE staff should participate in the reviews.

Type of Reviews
The purpose of A&E consultant contract oversight reviews is to verify LPA compliance with federal and state consultant contract administration requirements. A risk-based approach has been identified by the A&E branch to aid LPAs with compliance that includes requiring agencies to complete and submit Exhibit 10-C prior to contract award, or after contract award but no later than the first invoice. The objective is to create a database documenting all consultant contracts and to perform process reviews on a sample of contracts for the annual performance measures report.

Although the risk-based approach is the submittal of Exhibit 10-C via the database, a process review may be conducted on projects for reporting purposes and to determine accuracy of Exhibit 10-C information.

Exhibit 10-C Review
The purpose of the Exhibit 10-C database is to provide oversight and guidance to an LPA regarding consultant contract administration on a federal or state funded project prior to the award of the contract. The database includes items considered critical for compliance with federal and state regulations.

Subsequent process reviews may be performed on selected state and/or federal projects requiring a greater degree of oversight if deemed necessary for agencies with a noncompliance history.

The following factors may be used when selecting projects for subsequent review:
• LPAs with identified deficiencies during an Incurred Cost Audit • Projects administered by agencies with previous sanctions/findings • Lack of experienced/trained LPA personnel
• Request by LPA or DLAE for additional assistance
During subsequent process reviews, the A&EOE will meet with the LPA's consultant contract administration team and discuss project record documentation requirements using the Exhibit 10-C database. The timing of these types of reviews is targeted for pre-advertisement, prenegotiations, and pre-award of the consultant contract. This will allow for any changes to take place prior to execution or termination of negotiations for re-advertising. The A&EOE will also explain new policies or procedures, discuss available training, and highlight common problem areas and the means to avoid them.

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Review Findings and Deficiencies
Caltrans will not be involved in most project level reviews and approval activities. Instead, the Process Review as outlined in this section is Caltrans’ primary method of ensuring that federal and state requirements are met. During a Process Review of an LPA’s project files, errors and/or deficiencies that may violate federal or state law or regulation could be found. If that happens, federal and/or state funds may be withdrawn from a project depending on the severity and circumstance of the deficiency, as well as the possibility of jeopardizing future federal and/or state funding opportunities for the agency’s other projects.

It is important to note that the formal process review is not the only method of discovering project deficiencies. Errors or deficiencies are discovered occasionally as part of the normal routine of processing project submittals by DLAEs or DLA Area Engineers.

Review findings from any subsequent reviews will be forwarded to the LPA and the DLAE within five business days. Deficiencies identified during a review may require development of a corrective action plan by the LPA in consultation with the District within 30 calendar days of receipt of the deficiency notification, unless the agency disagrees with the deficiencies identified and appeals the decision as discussed below.

A list of common A&E consultant procurement-related deficiencies is found at the A&E website.

These examples, not all-inclusive, should assist LPAs with knowing common deficiencies found in the past and the possible ramifications for those errors and deficiencies. The key to avoiding possible sanctions is to follow the procedures outlined in this chapter and other appropriate policies and guidelines, and if you have any questions, to consult your DLAE.

Corrective action plans, if required, will identify actions the LPA will take to address each deficiency noted. Corrective actions may include the following: Re-advertising, modifications of LPA policies and procedures, and participation in training to address systemic related deficiencies. Project specific issues may require additional measures to remedy deficiencies to ensure compliance with federal and state requirements and ensure reimbursement eligibility.

Corrective action plans must also include timelines for each action to be implemented. Failure to provide and implement corrective actions may result in sanctions or federal/state ineligibility notices against the project or LPA, and could prevent federal or state participation in all or a portion of the project.

In the event the LPA disagrees with the deficiencies identified, the LPA will have 30 calendar days from receipt of the deficiency notification to submit their written request for appeal in accordance with the DLA’s Local Agency Dispute Resolution Process. If the appeal is denied, the LPA will have 30 calendar days from receipt of the decision to submit their corrective action plan.

The Dispute Resolution Process provides a means for the LPA to appeal a sanction that they feel has been imposed upon them unfairly or they feel the penalty is too harsh for the error or deficiency. This appeal process is not limited to just the appeal of sanctions; it can be used by LPAs when they disagree with the decision, they receive from a district office.

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10.5 SANCTIONS
Depending on the severity and circumstances of the deficiencies which may require sanctioning by Caltrans, the DLA or DLAE may impose one of the following sanctions:
• Freeze on all future programming of federal or state funds until corrective action is implemented
• Freeze progress payments for a federal-aid project until the project’s deficiency is corrected
• Percentage of federal or state funds for a project withdrawn • All federal or state funds withdrawn from a project
The DLAE will be responsible for notifying the LPA of sanctions imposed. Whether or not sanctions are imposed against an LPA, the LPA will be expected to develop a corrective action plan and implement it to correct the deficiencies. LPAs will be given adequate time to develop and implement their action plan. Failure to correct the deficiencies in a timely manner will be grounds for imposing additional sanctions

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____________________________________________________________________________________

FOR CITY CLERK ONLY
File No.: _______________________________
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 6.a
Meeting Date: January 18, 2022

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: CITY ATTORNEY
Prepared by: Lisa Goldfien,
Assistant City Attorney
City Manager Approval: ______________
TOPIC: 2021-2022 CITY COUNCIL REDISTRICTING PROCESS
SUBJECT: SECOND PUBLIC HEARING ON EXISTING COUNCIL DISTRICT LINES AND

POSSIBLE CHANGES
RECOMMENDATION:

Hold a public hearing to receive public comment concerning how the four City Council electoral districts should be adjusted and then provide any direction to the demographic consultant regarding the preparation of maps for consideration at future meetings.

BACKGROUND:

On April 16, 2018, the City Council adopted Ordinance No. 1956, approving the move from at-large voting to “by-district” voting for council elections, in which each member of the Council must reside in a district and is elected only by the voters within that district, and approving the district map designated as “Canal 3B.” The City’s first general municipal election using the new City Council districts was held on November 3, 2020, for the City Council seats in Districts 1/South and 4/North. The first elections in Districts 2/West and 3/East will be held on November 8, 2022.

Even though the City created its four electoral districts only three years ago, Elections Code § 21621 requires that the redistricting process occur again following each federal decennial census to rebalance the districts’ populations in light of the most recent data available. The most recent decennial census was conducted in 2020, and the Bureau released its “PL94-171” redistricting data on August 12, 2021.

However, under changes to California law adopted in 2019, known as the FAIR MAPS Act, the City is required to use data from the California Statewide Database at UC Berkeley (“SWDB”), which “adjust the Census Bureau’s data to account for legislatively-required reallocation of incarcerated felons within the State. (See Elec. Code § 21621(a)(2).) Those adjusted data were released on September 21, 2021, and a corrected version of the data was released on September 27, 2021.

At its meeting on July 19, 2021, the Council received a presentation regarding the redistricting process from the City’s special counsel, Chris Skinnell of Nielsen Merksamer Parrinello Gross & Leoni, after which SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
the Council approved the timeline for the redistricting process. At its September 13 meeting, the Council received a further presentation from Mr. Skinnell summarizing the legal rules governing the readjustment of district lines and the preliminary demographics of the existing districts based on the PL94-171 data. At its meeting on November 15, 2021, the Council received updated information regarding the final “adjusted” demographics of the existing districts based on the SWDB data, after which the Council conducted a duly-noticed public hearing to receive public testimony regarding the composition of the districts, especially communities of interest.

Pursuant to the FAIR MAPS Act, the Council is required to conduct four public hearings, the first two of which will focus on receiving feedback from the Council and the public regarding the current lines, and desired changes, and the City’s communities of interest. This is the second of those pre-mapping public hearings. The third and fourth hearings will focus on actual draft maps to readjust the Council districts.

The statutory deadline for completion of the redistricting process is April 17, 2022.

ANALYSIS:

At the meeting, the City’s demographic consultant, Ms. Kristen Parks of National Demographics Corporation, will again present information regarding the demographics of the current districts and the Council will again be asked to conduct a public hearing to receive feedback from the public regarding possible changes.

The following is a summary of the main substantive legal requirements for the redistricting process:
1) The districts must be “substantially equal in population as defined by the Supreme Court. 2) The districts must comply with the federal Voting Rights Act of 1965 (52 U.S.C. Sec. 10301 et seq.).
3) The districts must comply with constitutional restrictions on “racial gerrymandering.” 4) Subject to the constitutional and federal law requirements noted in paragraphs (1) – (3), voting districts must be established according to four statutory criteria, ranked in order of priority:
• To the extent practicable, council districts shall be geographically contiguous.

Areas that meet only at the points of adjoining corners are not contiguous.

Areas that are separated by water and not connected by a bridge, tunnel, or regular ferry service are not contiguous.
• To the extent practicable, the geographic integrity of any local neighborhood or local community of interest shall be respected in a manner that minimizes its division. A “community of interest” is a population that shares common social or economic interests that should be included within a single district for purposes of its effective and fair representation. Communities of interest do not include relationships with political parties, incumbents, or political candidates. • Council district boundaries should be easily identifiable and understandable by residents. To the extent practicable, council districts shall be bounded by natural and artificial barriers, by streets, or by the boundaries of the city.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
• To the extent practicable, and where it does not conflict with the preceding criteria in this subdivision, council districts shall be drawn to encourage geographical compactness in a manner such that nearby areas of population are not bypassed in favor of more distant populations.

The adjusted SWDB data indicate that the current districts’ “total deviation” is approximately 8.53%— within the 10% maximum allowable deviation prescribed by the Supreme Court. This deviation is driven primarily by Districts 3 and 4. District 3 is approximately 4.00% underpopulated, and District 4 is approximately 4.53% overpopulated. Districts 1 and 2 are closer to balance. District 1 is approximately

3.13% underpopulated, and District 2 is approximately 2.60% overpopulated.

COMMUNITY OUTREACH:

As staff advised the Council at the September and November meetings, the City has established a City redistricting website with all pertinent documents in both English and Spanish. It can be found at https://redistrictsanrafael.org/. By visiting that website, members of the public can now also submit proposed district maps for the Council’s consideration, using either a paper mapping kit or online mapping tools.

FISCAL IMPACT:

There is no fiscal impact from the recommended City Council action. Completion of the redistricting process will incur expenses of approximately $50,000 in consulting attorney’s fees and $60,000 in consulting demographer’s fees (including the online mapping tool), in addition to regular staff time.

Sufficient funds have been included in the budget to cover these expenses.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Accept the information report on the current lines and conduct the second public hearing, then provide any guidance to the demographers re possible changes to the existing lines and preparation of maps for consideration at future hearings.

2. Take no action.

RECOMMENDED ACTION:

Move to accept the informational report regarding the City Council redistricting process, conduct the public hearing, and provide guidance to the demographer.

ATTACHMENTS:

1. PowerPoint Presentation
January 18, 2022
Redistricting Public Hearing #2
Kristen Parks, Consultant
City of San Rafael
~ '----------- NOC
January 18, 2022 2
San Rafael’s Transition to Districts
Date Event
November 10, 2017 City received letter alleging
violation of the California
Voting Rights Act (CVRA)
Districting January 16, 2018 Council passed resolution to change to district elections
April 16, 2018 Council adopted district map
November 3, 2020 Elections for Districts 1 & 4
2021- 2022 Districts must be redrawn to
reflect 2020 Census data Redistricting
Although the
current districts
were adopted in
2018, they were
drawn using 2010
Census data.

Current District
Map (2018)
January 18, 2022
New Procedural Requirements
Per the California FAIR MAPS Act (2019), the City must:
• Conduct at least 4 public hearings prior to adoption of new map
• Provide live Spanish* interpretation if requested 72 hours in advance of meeting
• Encourage public participation by conducting outreach to media and community groups, including those in
underrepresented and non-English speaking communities
• Establish and maintain a redistricting website for at least 10 years
* Spanish is the only “applicable language” designated for San Rafael 4 January 18, 2022 5
Redistricting Timeline
Date Event
August 12, 2021 Release of 2020 Census data
September 27, 2021 Release of California’s official redistricting data November 15, 2021 Public Hearing #1
January 18, 2022 Public Hearing #2
February 21, 2022 Public Hearing #3
March 21, 2022 Public Hearing #4
April 17, 2022 Legal deadline for Council to adopt redistricting plan November 8, 2022 First election with new map
January 18, 2022 6
Legal Criteria for Redistricting

1. Ensure geographic
contiguity

2. Minimize division
of neighborhoods
& “communities
of interest”

3. Create easily
identifiable
boundaries

4. Maintain
compactness
 Do not “favor or
discriminate against
a political party”
 Ensure equal
population*
 Comply with
federal Voting
Rights Act
 Avoid racial
gerrymandering
California Law Traditional Criteria
May include:
• Minimize changes
to election cycles
• Respect voters’
choices
• Preserve core of
existing districts
Federal Law
Do not bypass a
nearby population
to take in a more
distant population
* Total population
deviation < 10%
7 San Rafael
Demographic
Summary
*Ideal District Size:

Each of the 4 districts
must contain about
15,333 people
District 1 2 3 4 Total
2020 Total Population 14,853 15,732 14,720 16,028 61,333 Deviation from ideal* -480 399 -613 695 1,308
% Deviation -3.13% 2.60% -4.00% 4.53% 8.53%
Total Population
% Hisp 79.8% 21% 21% 18% 34%
% NH White 12% 65% 64% 64% 52%
% NH Black 1% 2% 2% 2% 2%
% Asian-American 5% 7% 9% 12% 8%
Citizen Voting
Age Pop
Total 10,656 12,994 12,096 13,023 48,769
% Hisp 76% 19% 19% 15% 30%
% NH White 15% 68% 66% 67% 56%
% NH Black 2% 2% 2% 2% 2%
% Asian/Pac.Isl. 6% 7% 9% 11% 8%
Language
spoken at home
english 82% 76% 72% 64%
spanish 67% 12% 11% 11% 25%
asian-lang 4% 2% 5% 5% 4%
other lang 3% 4% 8% 12% 7%
Language
Fluency
Speaks Eng. "Less
than Very Well" 48% 7% 9% 12% 19%
Child in
Household child-under18 51% 22% 23% 27% 29%
Household
Income
income 0-25k 20% 12% 14% 11% 13%
income 25-50k 24% 17% 14% 11% 16%
income 50-75k 21% 12% 8% 15% 13%
income 75-200k 25% 38% 36% 40% 36%
income 200k-plus 10% 22% 28% 23% 22%
Housing Stats
single family 30% 53% 74% 60% 56%
multi-family 70% 47% 26% 40% 44%
rented 77% 58% 36% 37% 50%
owned 23% 42% 64% 63% 50%
January 18, 2022 8
Calculating Population Deviation
Ideal district size = 15,333
 Calculated by dividing the total population by the number of districts
 61,333/4 = 15,333.25
Total deviation = 1,308
 Calculated by subtracting the smallest district’s population from the largest district’s population
 D4 (16,028) - D3 (14,720) = 1,308
Total deviation % = 8.53%
 Calculated by subtracting the smallest district’s deviation from the largest district’s deviation
 D4(4.53) – D3(-4.00) = 8.53%
January 18, 2022 9
Defining “Communities of Interest”
Under California Elections Code, “community of interest” has a specific definition in the context of redistricting:

Definitions of “communities of interest” do not include relationships with political parties, incumbents, or political candidates.

A “community of interest” is a population that
shares common social or economic interests that
should be included within a single district for
purposes of its effective and fair representation.
10 Public Mapping Tools
San Rafael’s mapping tools
empower residents to draw
their communities of
interest, home district, or an
entire citywide district plan
January 18, 2022
Public Testimony
 What are the geographic boundaries of your
neighborhood or “community of interest”?
 Should your neighborhood or “community of interest” be kept together in one district? Why or why not?
 What other areas in the City should be considered when drafting district maps?
11 January 18, 2022 12
Share Your Thoughts
Website: redistrictsanrafael.org
____________________________________________________________________________________

SOLO PARA EL SECRETARIO DE LA CIUDAD
Expediente No: _______________________________
Reunión del Consejo: _______________________
Disposición: ___________________________
Punto del orden del día no: 6.a
Fecha de la reunión:
18 de enero de 2022
INFORME DEL ORDEN DEL DÍA DEL CONSEJO DE LA CIUDAD DE SAN RAFAEL Departamento: ABOGADO DE LA CIUDAD
Preparado por: Lisa Goldfien,
Asistente del Abogado de la Ciudad
Aprobación del Gerente de la Ciudad:
__________
TEMA: PROCESO DE REORDENACIÓN DE DISTRITOS DEL CONSEJO DE LA CIUDAD 2021-2022
ASUNTO: SEGUNDA AUDIENCIA PÚBLICA SOBRE LOS LÍMITES DE LOS DISTRITOS

EXISTENTES DEL CONSEJO Y POSIBLES CAMBIOS
RECOMMENDACIÓN:

Celebrar una audiencia pública para recibir comentarios del público sobre cómo deberían ajustarse los cuatro distritos electorales del Consejo de la Ciudad, y luego dar instrucciones al consultor demográfico sobre la preparación de mapas para su consideración en futuras reuniones.

ANTECEDENTES:

El 16 de abril de 2018, el Consejo de la Ciudad adoptó la Ordenanza No. 1956, así aprobando el cambio de la votación por acumulación general a la votación "por distrito" para las elecciones del Consejo de la Ciudad, en las que cada miembro del Consejo debe residir en un distrito y es elegido sólo por los votantes dentro de ese distrito, y aprobando el mapa del distrito designado como "Canal 3B". La primera elección municipal general de la Ciudad utilizando los nuevos distritos del Consejo de la Ciudad se llevó a cabo el 3 de noviembre de 2020, para las plazas del Consejo de la Ciudad en los Distritos1/Sur y 4/Norte. Las primeras elecciones en los Distritos 2/Oeste y 3/Este se llevarán a cabo el 8 de noviembre de 2022.

Si bien la Ciudad creó sus cuatro distritos electorales hace sólo tres años, la sección 21621 del Código Electoral exige que el proceso de reordenación de distritos se realice de nuevo después de cada censo federal decenal para reequilibrar las poblaciones de los distritos a la luz de los datos más recientes disponibles. El censo decenal más reciente se realizó en 2020, y la Oficina publicó sus datos de reordenación de distritos "PL94-171" el 12 de agosto de 2021. Sin embargo, en virtud de los cambios en la ley de California adoptados en 2019, conocidos como la Ley FAIR MAPS, la Ciudad está obligada a utilizar los datos de la Base de Datos del Estado de California en UC Berkeley ("SWDB"), que "ajustan los datos de la Oficina del Censo para tener en cuenta la reasignación de los delincuentes encarcelados dentro del Estado requerida por la legislación." (Véase el Cód. Elec. sección INFORME DEL ORDEN DEL DÍA DEL CONSEJO DE LA CIUDAD DE SAN RAFAEL 2 21621(a)(2).) Esos datos ajustados se publicaron el 21 de septiembre de 2021, y una versión corregida de los datos fue publicada el 27 de septiembre de 2021.

En su reunión del 19 de julio de 2021, el Consejo recibió una presentación sobre el proceso de reordenación de distritos por parte del abogado especial de la Ciudad, Chris Skinnell de la firma Nielsen Merksamer Parrinello Gross & Leoni, después de lo cual el Consejo aprobó el calendario del proceso de reordenación de distritos. En su reunión del 13 de septiembre, el Consejo recibió otra presentación del Sr. Skinnell en la que se resumían las normas legales que rigen el reajuste de los límites de los distritos y la demografía preliminar de los distritos existentes basada en los datos del PL94-171. En su reunión del 15 de noviembre de 2021, el Consejo recibió información actualizada sobre la demografía final "ajustada" de los distritos existentes basada en los datos de SWDB, después de lo cual el Consejo realizó una audiencia pública debidamente notificada para recibir testimonios del público sobre la composición de los distritos, especialmente de las comunidades de interés.

De acuerdo con la Ley FAIR MAPS, el Consejo de la Ciudad está obligado a realizar cuatro audiencias públicas, de las cuales las dos primeras se centrarán en recibir los comentarios del Consejo y del público sobre los límites actuales y los cambios deseados, y las comunidades de interés de la Ciudad.

Esta es la segunda de las audiencias públicas previas a la elaboración de mapas. La tercera y cuarta audiencias se centrarán en los mapas reales provisionales para reajustar los distritos del Consejo.

La fecha límite legal para completar el proceso de reordenación de distritos es el 17 de abril de 2022.

ANÁLISIS:

En la reunión, la consultora demográfica de la Ciudad, la Sra. Kristen Parks de National Demographics Corporation, volverá a presentar información sobre la demografía de los distritos existentes y se volverá a pedir al Consejo que realice una audiencia pública para recibir los comentarios del público sobre los posibles cambios.

A continuación se resumen los principales requisitos legales sustanciales para el proceso de reordenación de distritos:
1) Los distritos deben ser "sustancialmente iguales” en población según la definición de la Suprema Corte.
2) Los distritos deben cumplir con la Ley Federal de Derecho al Voto de 1965 (52 U.S.C. Sec. 10301 y siguientes).
3) Los distritos deben cumplir con las restricciones constitucionales sobre la "manipulación racial".
4) Sujeto a los requisitos constitucionales y de la ley federal señalados en los párrafos (1) al (3), los distritos electorales deben ser establecidos de acuerdo con cuatro criterios estatutarios, clasificados por orden de prioridad:
• En la medida de lo posible, los distritos del consejo deberán ser geográficamente colindantes. Las áreas que se encuentran sólo en los puntos de las esquinas adyacentes no son colindantes. Las áreas que están separadas por el agua y no están conectadas por un puente, un túnel o un servicio regular de ferry no son colindantes.

INFORME DEL ORDEN DEL DÍA DEL CONSEJO DE LA CIUDAD DE SAN RAFAEL 3 • En la medida de lo posible, se respetará la integridad geográfica de todo vecindario o comunidad de interés local de manera que se minimice su división. Una "comunidad de interés" es una población que comparte intereses sociales o económicos comunes que se deben incluir dentro de un mismo distrito para lograr su representación efectiva y justa. Las comunidades de interés no incluyen relaciones con partidos políticos, miembros titulares o candidatos políticos.
• Las colindancias de los distritos del consejo deben ser fácilmente identificables y comprensibles por parte de los residentes. En la medida de lo posible, los distritos del consejo deben estar delimitados por barreras naturales y artificiales, por calles o por los límites de la ciudad. • En la medida de lo posible, y siempre que no entre en conflicto con los criterios anteriores de esta subdivisión, los distritos del consejo deben establecerse para fomentar la creación de áreas geográficamente compactas de manera que las áreas de población cercanas no sean pasadas por alto en favor de poblaciones más distantes.

Los datos ajustados de la SWDB indican que la "desviación total" de los distritos actuales es de aproximadamente un 8.53%—dentro del 10% de desviación máxima permitida por la Suprema Corte.

Esta desviación se debe principalmente a los Distritos 3 y 4. El Distrito 3 está infrapoblado en aproximadamente un 4.00%, y el Distrito 4 está superpoblado en aproximadamente un 4.53%. Los distritos 1 y 2 están más cerca del equilibrio. El Distrito 1 está infrapoblado en aproximadamente un

3.13%, y el Distrito 2 está superpoblado en aproximadamente un 2.60%.

ALCANCEA LA COMUNIDAD:

Como el personal informó al Consejo en las reuniones de septiembre y noviembre, la Ciudad ha establecido un sitio web de reordenación de distritos de la Ciudad con todos los documentos pertinentes tanto en inglés como en español. Se puede encontrar en https://redistrictsanrafael.org/. Al visitar ese sitio web, los miembros del público ahora también pueden presentar propuestas de mapas de distrito para la consideración del Consejo, utilizando un kit cartográfico en papel o herramientas en línea.

IMPACTO FISCAL:

La acción que se recomienda al Consejo de la Ciudad no tiene impacto fiscal. La terminación del proceso de reordenación de distritos incurrirá gastos de aproximadamente $50,000 en honorarios de abogados consultores y $60,000 en honorarios de demógrafos consultores (incluyendo la herramienta cartográfica en línea), además del tiempo regular del personal. Se han incluido fondos suficientes en el presupuesto para cubrir estos gastos.

OPCIONES:

El Consejo de la Ciudad tiene las siguientes opciones para considerar este asunto:

1. Aceptar el documento informativo sobre los límites actuales y realizar la segunda audiencia pública, y luego proporcionar orientación a los demógrafos sobre posibles cambios en los límites existentes y la preparación de mapas para su consideración en futuras audiencias.

2. No tomar ninguna medida.

ACCIÓN RECOMENDADA:

INFORME DEL ORDEN DEL DÍA DEL CONSEJO DE LA CIUDAD DE SAN RAFAEL 4 Aceptar el documento informativo en relación al proceso de reordenación de distritos del Consejo de la Ciudad, realizar la audiencia pública y dar orientación al demógrafo.

ADJUNTOS:

1. Presentación en PowerPoint
18 de enero de 2022
Audiencia pública sobre la reordenación de distritos #2 Kristen Parks, Consultora
Ciudad de San Rafael
18 de enero de 2022 2
Transición de San Rafael a los distritos
Fecha Evento
10 de noviembre de
2017
La Ciudad recibió una carta
alegando la violación de la Ley
de Derecho al Voto de
California (CVRA)
Ordenación
16 de enero de 2018 El Consejo aprobó una
resolución para cambiar a
elecciones de distrito
16 de abril de 2018 El Consejo aprobó el mapa de
distritos
3 de noviembre de
2020
Elecciones para los Distritos 1 y
4 2021 - 2022 Los distritos deben ser trazados
nuevamente para reflejar los
datos del censo de 2020
Reordenación
Aunque los distritos
actuales se
adoptaron en 2018,
se trazaron
utilizando los datos
del Censo de 2010.

Mapa actual de
los distritos
(2018)
18 de enero de 2022
Nuevos requisitos de procedimiento
Según la Ley FAIR MAPS de California (2019), la Ciudad debe::
• Realizar al menos 4 audiencias públicas antes de adoptar el nuevo mapa
• Ofrecer interpretación en vivo en español* si se solicita 72 horas antes de la reunión
• Alentar al público a participar mediante la realización de actividades de difusión a los medios de comunicación y
grupos comunitarios, incluidos los de las comunidades
subrepresentadas y que no hablan inglés
• Establecer y mantener un sitio web de reordenación de distritos durante al menos 10 años
* El español es el único "idioma aplicable" designado para San Rafael 4 18 de enero de 2022 5
Calendario de reordenación de distritos
Fecha Evento
12 de agosto de 2021 Publicación de los datos del censo de 2020 27 de septiembre de
2021
Publicación de los datos oficiales de reordenación de
distritos de California
15 de noviembre de
2021 Audiencia pública #1
18 de enero de 2022 Audiencia pública #2
21 de febrero de 2022 Audiencia pública #3
21 de marzo de 2022 Audiencia pública #4
17 de abril de 2022 Plazo legal para que el Consejo adopte el plan de reordenación de distritos
8 de noviembre de
2022 Primera elección con el nuevo mapa
18 de enero de 2022 6
Criterios legales para la reordenación

1. Garantizar la
contigüidad
geográfica

2. Minimizar la
división de barrios
y "comunidades
de interés"

3. Crear límites
fácilmente
identificables

4. Mantener distritos
compactos

5. No "favorecer o
discriminar a un
partido político"
 Garantizar
poblaciones
iguales*
 Cumplir con la
Ley Federal de
Derecho al Voto
 Evitar la
manipulación
racial
Ley de California Criterios tradicionales
Puede incluir:
• Minimizar los
cambios en los ciclos
electorales
• Respetar las opciones
de los votantes
• Conservar el núcleo
de los distritos
existentes
Ley federal
No pasar por alto una
población cercana para
absorber a una
población más lejana
* Desviación de la
población total<
10%
7 Resumen
demográfico
de San Rafael
*Tamaño ideal del
distrito:

Cada uno de los 4
distritos debe contener
alrededor de 15,333
personas
Distrito 1 2 3 4 Total
Población total 2020 14,853 15,732 14,720 16,028 61,333 Desviación del ideal* -480 399 -613 695 1,308
% de desviación -3.13% 2.60% -4.00% 4.53% 8.53%
Población total
% Hisp 79.8% 21% 21% 18% 34%
% Blanco NH 12% 65% 64% 64% 52%
% Negro NH 1% 2% 2% 2% 2%
% Asiático-Americano 5% 7% 9% 12% 8%
Población en
edad de votar
Total 10,656 12,994 12,096 13,023 48,769
% Hisp 76% 19% 19% 15% 30%
% Blanco NH 15% 68% 66% 67% 56%
% Negro NH 2% 2% 2% 2% 2%
% Asiático/Isl. Pac. 6% 7% 9% 11% 8%
Lengua hablada
en el hogar
inglés 82% 76% 72% 64%
español 67% 12% 11% 11% 25%
idioma asiático 4% 2% 5% 5% 4%
otro idioma 3% 4% 8% 12% 7%
Fluidez del
idioma
Habla inglés "Menos
que muy bien" 48% 7% 9% 12% 19%
Niños en la
familia menor de 18 años 51% 22% 23% 27% 29%
Ingresos de la
familia
ingresos 0-25k 20% 12% 14% 11% 13%
ingresos 25-50k 24% 17% 14% 11% 16%
ingresos 50-75k 21% 12% 8% 15% 13%
ingresos 75-200k 25% 38% 36% 40% 36%
ingresos más de 200k 10% 22% 28% 23% 22%
Estadísticas de
vivienda
unifamiliar 30% 53% 74% 60% 56%
multifamiliar 70% 47% 26% 40% 44%
de renta 77% 58% 36% 37% 50%
propia 23% 42% 64% 63% 50%
18 de enero de 2022 8
Cálculo de la desviación de la población
Tamaño ideal del distrito = 15,333
 Se calcula dividiendo la población total entre el número de distritos
 61,333/4 = 15,333.25
Desviación total = 1,308
 Se calcula restando la población del distrito más pequeño de la población del distrito más grande
 D4 (16,028) - D3 (14,720) = 1,308
% de desviación total = 8.53%
 Se calcula restando la desviación del distrito más pequeño de la desviación del distrito más grande
 D4(4.53) – D3(-4.00) = 8.53%
18 de enero de 2022 9
Definición de "comunidades de interés"
Según el Código Electoral de California, la "comunidad de interés" tiene una definición específica en el contexto de la reordenación de distritos:

Las definiciones de "comunidades de interés" no incluyen las relaciones con partidos políticos, miembros titulares o candidatos políticos.

Una "comunidad de interés" es una población
que comparte intereses sociales o económicos
comunes que se deben incluir dentro de un
mismo distrito para lograr su representación
efectiva y justa.
10 Herramientas cartográficas públicas
Las herramientas
cartográficas de San Rafael
permiten a los residentes
trazar sus comunidades de
interés, su distrito local o un
plan de distrito para toda la
ciudad
18 de enero de 2022
Testimonio público
 ¿Cuáles son los límites geográficos de su vecindario o "comunidad de interés"?
 ¿Debería mantenerse su vecindario o "comunidad de
interés" en un solo distrito? ¿Por qué o por qué no?
 ¿Qué otras zonas de la ciudad deberían tenerse en cuenta a la hora de preparar los mapas de los distritos?
11 18 de enero de 2022 12
Comparta sus opiniones
Sitio web: redistrictsanrafael.org
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: 7.a
Meeting Date: January 18, 2022

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Bill Guerin,
Director of Public Works
City Manager Approval: __________
TOPIC: SAN QUENTIN PUMP STATION
SUBJECT: INFORMATIONAL REPORT REGARDING THE SAN QUENTIN PUMP

STATION RECONSTRUCTION PROJECT AND FUNDING
RECOMMENDATION:

Accept the informational report.

BACKGROUND:

The San Quentin Pump Station was constructed in 1972 and is located in the saltwater marsh wetland and detention pond behind Target and Home Depot off Shoreline Parkway. The pump station conveys stormwater from the detention pond into the San Rafael Bay through a 960-foot outfall pipe that goes underneath the levee along the San Francisco Bay Trail. The existing pump station building is approximately 720 square feet in size and consists of a wet well, pressure vault, associated controls, and two vertical pumps.

After almost 50 years of operation, both the pump station and outfall pipe are beyond their useful life and need to be replaced. Without a functioning pump station at this location, stormwater would overflow from the detention pond into the neighboring industrial areas and inundate Interstate 580. Additionally, climate change is anticipated to result in larger storm events and rising sea levels therefore requiring an improved, more powerful pump station in place of the existing one. The new pump station will have additional pumping capacity and will also be more energy efficient than the existing facility. Staff is also studying the feasibility of an in-line trash capture device that will filter any debris running through the system. Staff is seeking State funding for the trash capture device with the intention of installing it soon after the pump station is completed.

On December 18, 2017, the City Council approved an agreement with CSW/Stuber-Stroeh Engineering Group, Inc. for preliminary engineering services resulting in a Basis of Design/Feasibility Study. After amending the agreement on October 1, 2018, the design consultant commenced environmental studies and construction drawings. As required by CEQA, on January 21, 2020, Council adopted the Mitigated Negative Declaration for this project and directed staff to proceed with final design and pursue regulatory environmental permits.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
That effort is nearing completion we expect to obtain the necessary permits to construct this project this spring.

ANALYSIS:

Construction of the San Quentin Pump Station is estimated to cost $3.2 million. Additional costs related to construction including contingency, construction management, and inspection costs will also be needed. The average annual Stormwater Fee funds available for CIP projects is only $500,000. Therefore, City staff has been actively pursuing grant funding to support the construction effort. In December 2019, staff applied to the FEMA Hazard Mitigation Grant Program to obtain $2.4 million of federal funds, but that grant application was unsuccessful. In August 2020, staff also applied to the State’s Urban Flood Protection Grant Program to obtain $1.5 million and that grant application was also unsuccessful. At this point, staff does not have a funding alternative for this important climate change-related infrastructure project that would be superior to using the American Rescue Plan Act (ARPA) funding.

In 2021, the City received funding through ARPA that can be used for CIP projects, and ARPA specifically calls out water infrastructure projects as eligible. City staff recommends that ARPA funds be used for the construction of this project. This project directly or indirectly touches on all of the City Council’s key focus areas for 2021/22, with a particular concentration on the key focus area of “Sustainability, Climate Change, and Disasters.” It is also a very significant infrastructure project that has been planned for many years without an available alternative funding source.

In addition to presenting the funding plan, this item is being brought forward to the City Council as an informational report at this time to raise awareness of a very significant infrastructure project, in the millions of dollars, prior to it coming to the City Council for formal bid award.

FISCAL IMPACT:

There is no fiscal impact for the acceptance of this informational report. City staff will proceed to advertise and award the construction project and will recommend appropriation of the ARPA funds at a future Council meeting once a construction contractor is identified.

OPTIONS:

The City Council has the following options to consider relating to this matter:

1. Accept the informational report as presented.

2. Do not accept the informational report

3. Direct staff to return with more information.

RECOMMENDED ACTION:

Accept the report.

ATTACHMENT:

1. Excerpts from the 60% planset that depict the overall project and existing condition.

PROJECT
SITE

EAST FRANCISCO SANITARY
& SEWER PUMP STATION
~ ..<-- 1601 E. FRANCISCO BLVD.
~-1~
0/&

DRAKE BLVD

VICINITY MAP
SCALE: NTS

SAN QUENTIN
S.W. PUMP

STATOIN
(E) PUMP STATION
(SEE SITE PLAN AND SECTION

VIEW, THIS SHEET)

WETLANDS AREA

WETLANDS AREA

LANDS OF KERNER BLVD LLC
APN 00901023

WETLANDS AREA
60" RCP (PRESSURIZED)
CP5
CP4
CP2
CP3
25'

WETLANDS LIMIT

WETLANDS LIMIT

RIPRAP ROCK

RIPRAP ROCK

PUMP STATION

PUMP STATION

PUMP STATION
100' BCDC BAY

JURISDICTIONAL

BOUNDARY SETBACK
LANDS OF TARGET CORP.
125 SHORELINE PKWY
APN 00932051

LANDS OF

THE CITY OF SAN RAFAEL
APN 00901025
Begin 37' Sag
TOP=20"
TOP=32"
End 37' Sag
TOP=24"
TOP=37"
TOP=42"
Begin 56' Sag
TOP=32"
56' SAG
TOP=42"
End 56' Sag
TOP=32"
8'
52' SAG
Begin 56' Sag
TOP=22"
End 56' Sag
TOP=42"
8'
TOP=50"
TOP=36"
37' SAG
10'

BCDC BAY

JURISDICTIONAL

BOUNDARY
B1 GEOTECH BORING
CP7
CP12
CP13
CP14
CP6
A
--

PRESSURE CHAMBER

EXISTING

PRESSURE
VAULT
EXISTING 63" O.D.

SPRINGLINE OF HDPE DISCHARGE

HDPE PIPE
(E) BAY MUD
(E) 3' ± BAY MUD

DIRT / AC PAVEMENT SURFACE
(DEPTH UNKNOWN)

UNABLE TO CONFIRM EXACT CONFIGURATION
OF THIS CONNECTION. DRAWING DEPICTS
AVAILABLE RECORDS.

FILTER FABRIC
(E) 12" WIDE

CONCRETE
WALL
8" PVC PRESSURE RELIEF
LAGOON

CONCRETE

PATHWAY
24" ACCESS

MANHOLE

CONTOLS

CONTOLS

DIRT/GRAVEL/AC ROADWAY

WET WELL
(2) EXISTING

VERTICAL
PUMPS

WET WELL

BAR SCREEN

VERTICAL
PUMP, TYP.

EXISTING

PRESSURE
VAULT

FRANCISCO
BLVD
580

SHORELINE
PKWY
TARGET

HOME DEPOT
LAGOON

LEVEE (GRAVEL) ROAD
BAY
B1

SEE EXISTING

SITE PLAN
CITY PROJECT NO.:

DRAWING: OF DESIGNED DRAWN CHECKED APPROVED

DATE DATE
NO. PROJECT NAME

SAN RAFAEL COUNTY OF MARIN CALIFORNIA
SHEET NO.:

DRAWING NAME
DATE:

SCALE: REVISION BY DATE CSW/StuberStroeh
45 Leveroni Court
Novato, CA 94949
tel: 415.883.9850
fax: 415.883.9835
Engineering Group, Inc.

Civil & Structural Engineers
Surveying & Mapping
Environmental Planning
Land Planning
Construction Management
November 14, 2018

RJSSASRJS
11334
 65% CD 80219
2 C2.0
as shown
Graphic Scale (in feet)
0 1 inch = 40 ft.
40 PROPERTY MAP
1 inch = 300 ft.

EXISTING SITE PLAN
N.T.S.

EXISTING PUMP STATION SITE PLAN & SECTION VIEW
1 inch = 10 ft.

A SECTION VIEW

PLAN VIEW

CONTROL POINTS
POINT NO. NOTHING EASTING ELEVATION DESCRIPTION
2 2176656.299812 5987083.060150 3.96 CP 60D
3 2176573.533388 5987065.644983 4.35 CP 60D
4 2176735.928568 5987055.085624 4.12 CP 60D
5 2176714.591922 5987030.066885 4.80 CP 60D
6 2176734.340642 5987484.616836 3.54 CP 60D
7 2176911.145372 5987954.962687 9.13 CP 60D
12 2176830.111457 5987951.950462 9.54 CP 60D
13 2176781.163349 5987678.220722 2.81 CP 60D
14 2176720.821334 5987403.134558 3.88 CP 60D
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PRESSURE
VAULT
(E) BAY MUD
(E) 3' ± BAY MUD
FS 8.0
(3) 100 CFS
FS 5.0
FS 9.0
FS 16.0
FS 4.0
22' 5'
8'
FS 5.0 ±
FL 4.0
TYP. OF 3

BYPASS FLAP GATE
27 28
1 21
19 22
10'
23'
10' 10'
5'

5.73'

6.03'

19.83'
2'

7.32'

43.33'

25.5'

4.51'
15'

5.99'
21'
5' 8'
4'
3'
3'
3'
4'
1 TYP.
21 TYP.

PRESSURE VAULT
5 6
9 7
3 8
4 8 10 10
23 BAY #1 BAY #2 BAY #3
24 25
27 CITY PROJECT NO.:

DRAWING: OF DESIGNED DRAWN CHECKED APPROVED

DATE DATE
NO. PROJECT NAME

SAN RAFAEL COUNTY OF MARIN CALIFORNIA
SHEET NO.:

DRAWING NAME
DATE:

SCALE: REVISION BY DATE CSW/StuberStroeh
45 Leveroni Court
Novato, CA 94949
tel: 415.883.9850
fax: 415.883.9835
Engineering Group, Inc.

Civil & Structural Engineers
Surveying & Mapping
Environmental Planning
Land Planning
Construction Management
November 14, 2018

RJSSASRJS
11334
 65% CD 80219 RJS
as shown

PUMP STATION SECTION VIEW
1 inch = 10 ft.

PUMP STATION SITE PLAN
1 inch = 10 ft.

KEYNOTES

NEW VERTICAL PUMPING UNIT
NEW 5HP SUBMERSIBLE PUMPING UNIT

NEW MOTOR CONTROL CENTER

NEW PLC CONTROL

NEW AUTOMATIC TRANSFER SWITCH

MAIN SWITCHBOARD
NEW SWITCHBOARD MS1

PORTABLE GENERATOR (NIC)

NEW TRANSFORMER & PAD
NEW 4' WIDE PEDESTRIAN OR 12' WIDE VEHICULAR
GATE (SEE DETAILS, SHEET C6.1)

BOLTED DOWN MANHOLE LID

PROTECT IN PLACE EXISTING STORM DRAIN TURNING

STRUCTURE

PROTECT IN PLACE EXISTING UTILITY POLE & METER

PROTECT IN PLACE EXISTING PUMP STATION &

FENCING

WETLANDS LIMITS
18" STORM DRAIN PIPE  SEE PLAN & PROFILE SHEET
C3.0 AND DETAIL SHEET C6.1
STORM DRAIN MANHOLE (UCS DWG #205, TYPE "A")
12" NOMINAL Ø RIPRAP ROCK (10 TONS)  SEE DETAIL,
SHEET C6.1
48" STORM DRAIN PIPE (OPEN TRENCH) SEE PLAN &
PROFILE SHEET C3.0  3.1 AND DETAIL SHEET C6.1)
48" STORM DRAIN PIPE (SLIP LINE) SEE PLAN & PROFILE
SHEET C3.0  3.1)
FLAP GATE (SEE DETAIL, SHEET C6.3)
8" PRESSURE RELIEF LINE
CONCRETE SLAB (SEE DETAILS, SHEET C6.0)

PREFABRICATED PEDESTRIAN STAIRWAY
OVERFLOW PIPE AND FLAP GATE WITH FL ELEV = 4.0

REMOVE & DISPOSE EXISTING PUMP STATION, SEE
DEMOLITION PLANS C2.1
BAR SCREEN (SEE DETAILS, SHEET C6.2)
CATWALK (SEE DETAILS, SHEET C6.2)

NEW SS HAND RAILING
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 PUMP STATION LAYOUT
1 inch = 10 ft.
6 C4.0
5 11
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WETLANDS AREA

LANDS OF

THE CITY OF SAN RAFAEL
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U.S.A. NOTIFICATION SERVICE
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: SA 1.a
Meeting Date: January 18, 2022

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

AGENDA REPORT
Department: Finance Department
Prepared by: Nadine Atieh Hade
Finance Director
City Manager Approval: ______________
TOPIC: RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR FISCAL YEAR 2022-23
SUBJECT: ACCEPTANCE OF ROPS REPORT AND AUTHORIZATION TO SUBMIT TO THE

MARIN COUNTY SUCCESSOR AGENCY OVERSIGHT BOARD AND THE STATE

DEPARTMENT OF FINANCE
RECOMMENDATION:

1. Review and approve the annual ROPS for July 1, 2022 through June 30, 2023.

2. Authorize staff to submit the ROPS to the Marin County Successor Agency Oversight Board and the State Department of Finance.

BACKGROUND: Effective February 1, 2012, all redevelopment agencies throughout the State, including the San Rafael Redevelopment Agency (the “Dissolved SRRDA”) were dissolved as a result of the State Supreme Court decision upholding ABx1 26 (the “Dissolution Act”). Under the provisions of the Dissolution Act, the City as successor agency to the Dissolved SRRDA must prepare, and the Oversight Board to the Successor Agency of the Dissolved SRRDA must adopt, a ROPS and Administrative Budget for an annual basis starting in January 2016 pursuant to SB 107.

ANALYSIS: The ROPS lists the payments required to meet the Successor Agency’s obligations and serves as the Agency’s budget. Funding of the Successor Agency’s obligations are administered through Marin County after being received from the State. The ROPS must be approved by the Marin Countywide Successor Agency Oversight Board and the State Department of Finance before it becomes effective.

FISCAL IMPACT: No fiscal impact to the General Fund.

ATTACHMENT:

Recognized Obligation Payments Schedules (ROPS) for July 1, 2022 through June 30, 2023 Recognized Obligation Payment Schedule (ROPS 22-23) - Summary Filed for the July 1, 2022 through June 30, 2023 Period Successor Agency: San Rafael
County: Marin
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
22-23A Total
(July -
December)
22-23B Total
(January -
June)
ROPS 22-23
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ - $ - $ - B Bond Proceeds - - -
C Reserve Balance - - -
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 3,001,500 $ 80,000 $ 3,081,500 F RPTTF 2,936,500 15,000 2,951,500
G Administrative RPTTF 65,000 65,000 130,000
H Current Period Enforceable Obligations (A+E) $ 3,001,500 $ 80,000 $ 3,081,500 Certification of Oversight Board Chairman:

Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
San Rafael
Recognized Obligation Payment Schedule (ROPS 22-23) - ROPS Detail July 1, 2022 through June 30, 2023

A B C D E F G H I J K L M N O P Q R S T U V W
Item
#
Project
Name
Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
22-23
Total
ROPS 22-23A (Jul - Dec)
22-23A
Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
$3,081,500 $3,081,500 $- $- $- $2,936,500 $65,000 $3,001,500 $- $- $- $15,000 $65,000 $80,000 1 Series
1999 TA
Bonds
Bonds
Issued
On or
Before
12/31/10
12/01/
1999
12/30/2022 US Bank Bond Issue
CABS paid
2018-2022
Central 1,440,000 N $1,440,000 - - - 1,440,000 - $1,440,000 - - - - - $- 2 Series
2002 TA
bonds
Bonds
Issued
On or
Before
12/31/10
12/01/
2002
06/30/2022 US Bank Bond issue
Dec 2014
Central - N $- - - - - - $- - - - - - $-
3 Series
2009 TA
Bonds
Bonds
Issued
On or
Before
12/31/10
12/01/
2009
06/30/2023 US Bank Bond issue
Dec 2014
Central 1,496,500 N $1,496,500 - - - 1,496,500 - $1,496,500 - - - - - $- 7 Continuing
Disclosure
Services /
Bond
Admin
Fees 12/01/
2009
06/30/2023 Wildan /
U.S.

Bank
Disclosure
and Trustee
Services
Central 15,000 N $15,000 - - - - - $- - - - 15,000 - $15,000 9 Agency
Admin
cost
allowance
Admin
Costs
06/30/
2011
12/30/2023 Agency
Admin
cost
allowance
Agency Admin
cost allowance
Central 130,000 N $130,000 - - - - 65,000 $65,000 - - - - 65,000 $65,000 12 RDA
Pension
Obligation
Unfunded
Liabilities
11/20/
1972
06/30/2023 City of
San
Rafael
unfunded
actuarial
accrued
liability 10 yr
amortization
schedule
Central - N $- - - - - - $- - - - - - $-
San Rafael
Recognized Obligation Payment Schedule (ROPS 22-23) - Report of Cash Balances July 1, 2019 through June 30, 2020
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

A B C D E F G H
ROPS 19-20 Cash Balances
(07/01/19 - 06/30/20)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/19)
RPTTF amount should exclude "A" period distribution
amount.
(190,994)
2 Revenue/Income (Actual 06/30/20)
RPTTF amount should tie to the ROPS 19-20 total
distribution from the County Auditor-Controller
3,910,462
3 Expenditures for ROPS 19-20 Enforceable Obligations
(Actual 06/30/20)
3,910,462
4 Retention of Available Cash Balance (Actual 06/30/20) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
5 ROPS 19-20 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 19-20 PPA
form submitted to the CAC
No entry required
6 Ending Actual Available Cash Balance (06/30/20)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $- $(190,994)
San Rafael
Recognized Obligation Payment Schedule (ROPS 22-23) - Notes July 1, 2022 through June 30, 2023
Item # Notes/Comments
1 2
3 7
9 12
I
____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting:

Disposition:

Agenda Item No: SA 1.b
Meeting Date: January 18, 2022

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

AGENDA REPORT
Department: Finance Department
Prepared by: Nadine Atieh Hade,
Finance Director
City Manager Approval: ________
TOPIC: SUCCESSOR AGENCY QUARTERLY INVESTMENT REPORT
SUBJECT: ACCEPTANCE OF SUCCESSOR AGENCY QUARTERLY INVESTMENT REPORT FOR THE QUARTER ENDING DECEMBER 31, 2021
RECOMMENDATION: Accept investment report for the quarter ending December 31, 2021, as presented.

BACKGROUND: Pursuant to the State of California Government Code Section 53601 and the City’s investment policy, last approved by the City Council on June 7, 2021, staff provides the governing body a quarterly report on the Successor Agency's investment activities and liquidity.

ANALYSIS: The Successor Agency checking account had a balance of $0 at quarter-end.

FISCAL IMPACT: No financial impact occurs by adopting the report.

RECOMENDATION: Accept investment report for the quarter ending December 31, 2021, as presented.

ATTACHMENT:

1. Successor Agency Cash & Investment Report October through December 2021.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
TREASURER’S CERTIFICATION

I CERTIFY THAT ALL INVESTMENTS MADE ARE IN CONFORMANCE WITH SUCCESSOR AGENCY’S APPROVED INVESTMENT POLICY AND STATE INVESTMENT REGULATIONS. THE

SUCCESSOR AGENCY HAS SUFFICIENT LIQUIDITY TO MEET ALL OF THE OBLIGATIONS

REQUIRED DURING THE NEXT SIX-MONTH PERIOD, SUBJECT TO OVERSIGHT BOARD

APPROVAL OF OBLIGATIONS AND THE SUBSQUENT TIMELY COUNTY DISBURSEMENT OF FUNDS.

Nadine Atieh Hade
Finance Director

SUCCESSOR AGENCY TO SAN RAFAEL REDEVELOPMENT AGENCY
CASH and INVESTMENTS
QUARTER ENDED 12/31/2021

PURCHASE MATURIT

Y YIELD PURCHASE PAR MARKE
T Days to % OF AS

ISSUER TYPE DATE DATE PRICE
VALUE
VALUE Maturity TOTAL OF
CASH ACCOUNTS:

WESTAMERICA DD N/A N/A - $ - $ - $ 1 100.00% 10/31/2021WESTAMERICA DD N/A N/A - $ - $ - $ 1 100.00% 11/30/2021WESTAMERICA DD N/A N/A - $ - $ - $ 1 100.00% 12/31/2021TOTAL INVESTMENTS $ - - $ - $ TOTAL CASH & INVESTMENTS - QUARTER-END BALANCE - $ - $ - $ 100.00% % Portfolio held 1 year or less
100%
TYPE:DD - Demand Deposit
T:\CITY COUNCIL AGENDA ITEMS\Agenda Item Approval Process\2022-01-18\FIN - SA Quarterly Investment Report\SA Investment Worksheet