Agenda packet — Santa Ana City Council, May 2, 2023 (part 1 of 11)

City Council and Housing Authority Meeting
Packet
May 2, 2023
CLOSED SESSION MEETING – 5:00 PM
REGULAR OPEN MEETING – 5:45 PM
(Immediately following the Closed Session Meeting)
CITY COUNCIL CHAMBER
22 Civic Center Plaza, Santa Ana, CA 92701
Valerie Amezcua
Mayor
Thai Viet Phan
Councilmember – Ward 1
Benjamin Vazquez
Councilmember Ward 2
Jessie Lopez
Mayor Pro Tem Ward 3
Phil Bacerra
Councilmember Ward 4
Johnathan Ryan Hernandez
Councilmember Ward 5
David Penaloza
Councilmember Ward 6
Mayor and Council telephone: 7146476900
Agenda item inquiries: 7146476520
Sonia R. Carvalho
City Attorney
Kristine Ridge
City Manager
Jennifer L. Hall
City Clerk
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City’s website – www.santaana.org/citymeetings.

CITY VISION AND CODE OF ETHICS
The City of Santa Ana is committed to achieving a shared vision for the organization and its community. The Vision, Mission and Guiding Principles (Values) are the result of a thoughtful and inclusive process designed to set the City and organization on a course that meets the challenges of today and tomorrow, as follows:

Vision The dynamic center of Orange County which is acclaimed for our: Investment in youth • Safe and healthy community • Neighborhood pride • Thriving economic climate • Enriched and diverseculture•Qualitygovernmentservices
City Council 1 5/2/2023
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this Meeting, contact Michael Ortiz, City ADA Program Coordinator, at (714) 6475624. Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting documentation can be found on the City’s website – www.santaana.org/citymeetings.

Vision The dynamic center of Orange County which is acclaimed for our: Investment in youth • Safe and healthy community • Neighborhood pride • Thriving economic climate • Enriched and diverse culture • Quality government services
Mission To deliver efficient public services in partnership with our community which ensures public safety, a prosperous economic environment, opportunities for our youth, and a high quality of life for residents.

Guiding Principles Collaboration • Efficiency • Equity • Excellence • Fiscal Responsibility • Innovation • Transparency
Code of Ethics and Conduct At the Special Municipal Election held on February 5, 2008, voters approved an amendment to the City Charter which established the Code of Ethics and Conduct for elected officials and members of appointed boards, commissions, and committees to assure public confidence. The following are the core values expressed: • Integrity • Honesty • Responsibility • Fairness • Accountability • Respect • Efficiency Members of the public may attend the City Council meeting inperson or join via Zoom. The City Council meeting will occur live via teleconference Zoom webinar. You may view the meeting from your computer, tablet or smart phone via YouTube LiveStream at www.youtube.com/user/SantaAnaLibrary or on CTV3, available on Spectrum channel 3.

PUBLIC COMMENTS – Members of the public who wish to address the City Council on closed session items, items on the regular agenda or on matters which are not on the agenda, but are within the subject matter jurisdiction of the City Council may do so by one of the following ways:

MAILING OPTION written communications – Public comments may be mailed to: Office of the City Clerk, 20 Civic Center Plaza M30, Santa Ana, CA 92701. All written communications received via mail by 4:00 p.m. on the day of the meeting will be distributed to the City Council and imaged into the City’s document archive system which is available for public review.

SENDING EMAIL OPTION – Public comments may be sent via email to the City Clerk’s office at eComment@santaana.org. Please note the agenda item you are commenting on in the subject line of the email. All emails received two (2) hours before the scheduled start of the meeting will be distributed to the City Council and imaged into the City’s document archive system which is available for public review.

LIVE VIRTUAL OPTION – Members of the public may provide live comments during the meeting by Zoom or Conference Call. To join by Zoom click on or type the following address into your web browser https://us02web.zoom.us/j/315965149. To join the Conference Call: Dial (669) 9009128 and enter MEETING ID: 315 965 149#. You will be prompted by the City Clerk when it is time for a: i) closed session item, ii) general agenda item, iii) public hearing item, iv) special agenda item, or v) for Housing Authority item. You may request to speak by dialing *9 from your phone or you may virtually raise your hand from Zoom. After the Clerk confirms the last three digits of the caller’s phone number or Zoom ID and unmutes them, the caller must press *6 or microphone icon to speak. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak, unless due to the number of speakers wanting to kdiiidtiddiffttftitk
City Council 2 5/2/2023
ppy,,
voters approved an amendment to the City Charter which established the Code of Ethics and Conduct for elected officials and members of appointed boards, commissions, and committees to assure public confidence. The following are the core values expressed: • Integrity • Honesty • Responsibility • Fairness • Accountability • Respect • Efficiency Members of the public may attend the City Council meeting inperson or join via Zoom. The City Council meeting will occur live via teleconference Zoom webinar. You may view the meeting from your computer, tablet or smart phone via YouTube LiveStream at www.youtube.com/user/SantaAnaLibrary or on CTV3, available on Spectrum channel 3.

INPERSON OPTION Members of the public can provide inperson comments at the podium in the Council Chamber. The Council Chamber will have seating available for members of the public to attend the meeting inperson. Public comments are limited to three (3) minutes per speaker, unless a different time is announced by the presiding chair.

Speakers who wish to address the Council must do so by submitting a “Request to Speak” card by 5:00 p.m. for Closed Session items and by 6:00 p.m. for all other designated public comment periods as listed below. Cards will not be accepted after the Public Comment Session begins without the permission of the presiding chair.

The following designated public comment periods are:

1. LIVE PUBLIC COMMENTS ON CLOSED SESSION ITEMS – You can provide live comments on closed session items by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speaker queue will open at 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL BY 5:00 p.m. Speakers who are not in the speaker queue by 5:00 p.m. will not be permitted to speak.

2. LIVE PUBLIC COMMENTS ON REGULAR AGENDA ITEMS AND NONAGENDA ITEMS (GENERAL PUBLIC COMMENT) – You can provide comments by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speaker queue will open at 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL PRIOR TO 6:00 p.m. Speakers who are not in the speaker queue by 6:00 p.m. will not be City Council 3 5/2/2023
comments on closed session items by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speaker queue will open at 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE CALL BY 5:00 p.m. Speakers who are not in the speaker queue by 5:00 p.m. will not be permitted to speak.

3. LIVE PUBLIC COMMENTS ON PUBLIC HEARING ITEMS – You can provide comments by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speakers not in the queue by 6:00 p.m. will not be permitted to speak.

4. LIVE PUBLIC COMMENTS ON HOUSING AUTHORITY ITEMS – You can provide comments by joining Zoom or the Conference Call as described in the LIVE or INPERSON PUBLIC COMMENTS OPTION above. Speakers not in the queue by 6:00 p.m. will not be permitted to speak.

TRANSLATION SERVICES Spanish interpreting services are provided at City Council meetings. Simultaneous Spanish interpretation is provided through the use of headsets and consecutive interpretation (SpanishtoEnglish) in addition to those wishing to address the City Council at the podium.

La ciudad provee servicios de interpretación al español en las juntas del Concilio. La interpretación simultánea al español se ofrece por medio del uso de audífonos y la interpretación consecutiva (español a inglés) también está disponible para cualquiera que desee dirigirse al concilio municipal en el podio.

About the Agenda
To download or view the attachments (staff report and other supporting documentation) for each agenda item, you must select the agenda item to see the attachments to either open in a new link (the eyeball ) or download a pdf (the cloud symbol with the down arrow ).

CLOSED SESSION
CALL TO ORDER
ATTENDANCE Council Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Mayor Pro Tem Jessie Lopez
Mayor Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
City Clerk Jennifer L. Hall
ROLL CALL
City Council 4 5/2/2023
To download or view the attachments (staff report and other supporting documentation) for each agenda item, you must select the agenda item to see the attachments to either open in a new link (the eyeball ) or download a pdf (the cloud symbol with the down arrow ).

CLOSED SESSION
CALL TO ORDER
ATTENDANCE Council Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Mayor Pro Tem Jessie Lopez
Mayor Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
City Clerk Jennifer L. Hall
ROLL CALL
ADDITIONS\DELETIONS TO CLOSED SESSION
PUBLIC COMMENTS – Members of the public may address the City Council on Closed Session items.

RECESS – City Council will recess to Closed Session for the purpose of conducting regular City business.

CLOSED SESSION ITEMS – The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation:

1. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a):

Agency Negotiators: Human Resources Executive Director, Jason Motsick Employee Organizations:

Santa Ana Police Officers Association (POA)
Service Employees’ International Union (SEIU) FullTime Employees RECONVENE – City Council will reconvene to continue regular City business.

CITY COUNCIL REGULAR OPEN SESSION
CALL TO ORDER
ATTENDANCE Council Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
City Council 5 5/2/2023
RECONVENE – City Council will reconvene to continue regular City business.

CITY COUNCIL REGULAR OPEN SESSION
CALL TO ORDER
ATTENDANCE Council Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Mayor Pro Tem Jessie Lopez
Mayor Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
City Clerk Jennifer L. Hall
ROLL CALL
PLEDGE OF ALLEGIANCE Mayor Amezcua
WORDS OF INSPIRATION Cherry Lai, Tzu Chi Foundation Orange County Service Center ADDITIONS\DELETIONS TO THE AGENDA
CEREMONIAL PRESENTATIONS

1. Certificates of Recognition presented by Mayor Amezcua, Mayor Pro Tem Lopez, and Councilmember Bacerra to Santa Ana’s Boys Youth Basketball Teams: the Miners, the Wildcats, and the Bruins for their Exceptional Athletic Performance.

2. Proclamation presented by Councilmember Phan to Asian Americans Advancing Justice Southern California declaring May 2023 as Asian American and Pacific Islander Heritage Month. (revised 4/26/2023)
CLOSED SESSION REPORT – The City Attorney will report on any action(s) from Closed Session.

PUBLIC COMMENT – Public comments will be held during the beginning of the meeting for ALL comments on agenda and nonagenda items, with the exception of public hearings. Comments for public hearings will take place after the hearing is opened.

CONSENT CALENDAR
RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 3 through 26.

3. Excused Absences
Department(s): City Clerk’s Office
Recommended Action: Excuse the absent members.
4AppointNadinSaidNominatedbyCouncilmemberBacerraastheWard4Representative City Council 6 5/2/2023
RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 3 through 26.

3. Excused Absences
Department(s): City Clerk’s Office
Recommended Action: Excuse the absent members.

4. Appoint Nadin Said Nominated by Councilmember Bacerra as the Ward 4 Representative to the Police Oversight Commission for a FullTerm Expiring December 8, 2026 (Continued from the City Council meeting of April 18, 2023, Item No. 9) Department(s): City Clerk’s Office
Recommended Action: Appoint Nadin Said to the Police Oversight Commission as the Ward 4 representative and administer Oath of Office.

5. Appoint Carl Benninger Nominated by Councilmember Bacerra as the Ward 4 Representative to the Planning Commission for a FullTerm Expiring December 8, 2026 Department(s): City Clerk’s Office
Recommended Action: Appoint Carl Benninger to the Planning Commission as the Ward 4 representative and administer Oath of Office.

6. Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2022 Department(s): Finance and Management Services
Recommended Action: Receive and file Single Audit Report for the Fiscal Year Ended June 30, 2022.

7. Quarterly Report for Housing Division Projects and Activities for the Period of January 1, 2023 to March 31, 2023
Department(s): Community Development Agency
Recommended Action: Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of January 1, 2023 to March 31, 2023.

8. Approve Appropriation Adjustment Recognizing the Remaining Balance of Emergency Housing Voucher Service Fees
Department(s): Community Development Agency
Recommended Action: Approve an appropriation adjustment for Emergency Housing Voucher Service Fees in the amount of $155,750. (requires five affirmative votes)

9. Biennial Modification to the Program Year (PY) 202124 Regional and Local Workforce Plan for Grant Funds Received from the Federal Title I Workforce Innovation and Opportunity Act
Department(s): Community Development Agency
Recommended Action: 1. Approve the modification to the Regional and Unified Local Plan for PY 202124 and direct staff to submit to the California Workforce Development Board and State of California Employment Development Department.

2. Authorize the Mayor to execute all documents necessary for the submission of the PY 202124 modified Regional and Unified Local Plan.

3. Authorize staff to submit revisions to the PY 202124 Regional and Unified Local Plan shouldtheybenecessaryasrequestedbytheCaliforniaWorkforceDevelopmentBoardor City Council 7 5/2/2023
Department(s): Community Development Agency
Recommended Action: 1. Approve the modification to the Regional and Unified Local Plan for PY 202124 and direct staff to submit to the California Workforce Development Board and State of California Employment Development Department.

2. Authorize the Mayor to execute all documents necessary for the submission of the PY 202124 modified Regional and Unified Local Plan.

3. Authorize staff to submit revisions to the PY 202124 Regional and Unified Local Plan should they be necessary as requested by the California Workforce Development Board or California Employment Development Department.

10. Master Agreement with Qualified Schools to Provide Vocational Training with Federal Workforce Innovation and Opportunity Act (WIOA) and Orange County Social Services Grant Funds for Fiscal Year 202324 through Fiscal Year 202627(NonGeneral Fund) Department(s): Community Development Agency
Recommended Action: 1. Authorize the City Manager to execute a master agreement, for a total aggregate amount not to exceed $2,765,820 payable from federal Workforce Innovation and Opportunity Act and Orange County Social Services grant funds, for a fouryear period expiring June 30, 2027, with a school or training provider listed on the State Employment Training Provider List (ETPL), to deliver occupational skills training on an as needed basis to unemployed and lowincome individuals, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Approve schools and training programs listed on the State of California’s Eligible Training Provider List to be used on an as needed basis to provide occupational training under the guidelines of the Workforce Innovation and Opportunity Act.

11. Grant an Easement to Southern California Edison to Allow Underground Power to Serve a Traffic Signal (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an Easement Deed granting Southern California Edison the right to own, place, and maintain power conduits and conductors underground to serve APN 01603514.

12. Award a Purchase Order to Landscape Structures, Inc. to Provide and Install a Universally Accessible Playground at Thornton Park in the Amount of $2,042,277 (Specification No. 23059) (Project No. 232602) (General and NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize a onetime purchase and payment to Landscape Structures, Inc. to furnish and install a universally accessible playground at Thornton Park in the amount of $2,042,277, plus a contingency of $306,342 for a total amount not to exceed $2,348,619, subject to nonsubstantive changes approved by the City Manager and City Attorney.

13. Award a Purchase Order to Amtech Elevator Services to Replace the Elevator Cylinder at the Santa Ana Regional Transportation Center in the Amount of $141,945 (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize a onetime Purchase Order and payment to Amtech Elevator Services for the replacement of the elevator cylinder at the Santa Ana Regional Transportation Center in the amount of $141,945, plus a contingency of $30,900 for a total amount not to exceed $172,845, subject to nonsubstantive changes approved by the City Manager and City Attorney.

City Council 8 5/2/2023

14. Award a Construction Contract to Vido Samarzich, Inc. in the Amount of $978,455 for the Glenwood Place Water Improvements Project, with an Estimated Project Delivery Cost of $1,300,000 (Project No. 236476) (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: 1. Award a construction contract to Vido Samarzich, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $978,455 for the construction of the Glenwood Place Water Improvements Project, for the term beginning April 18, 2023 and ending upon project completion, and authorize the City Manager to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney.

2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,300,000, which includes $978,455 for the construction contract, $146,768 for contract administration, inspection, and testing, and a $174,777 project contingency for unanticipated or unforeseen work.

3. Determine these actions are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No.

ER202326 was filed for the project.

15. Award a Construction Contract to Pacific Hydrotech Corp. in the Amount of $12,795,865 for the Well 32 Rehabilitation Project, with an Estimated Project Delivery Cost of $16,634,625 (Project No. 136433) (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: 1. Award a construction contract to Pacific Hydrotech Corp., the lowest responsible bidder, in accordance with the base bid in the amount of $12,795,865 for construction of the Well 32 Rehabilitation Project, for a term beginning May 2, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to nonsubstantive changes approved by the City Manager and the City Attorney.

2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $16,634,625, which includes $12,795,865 for the construction contract, $1,224,820 for contract management, $694,560 for contract administration, inspection, and testing, and a $1,919,380 project contingency for unanticipated or unforeseen work.

16. Approve Agreements with JohnsonFrank & Associates, Inc., Stantec Consulting Services, Inc., and Towill, Inc. for OnCall Professional Land Surveying Services, with an Aggregate Amount Not to Exceed $2,450,000 for ThreeYear Terms (RFP No. 19090) (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute federal Caltrans agreements with JohnsonFrank & Associates, Inc., Stantec Consulting Services, Inc., and Towill, Inc. to provide oncall land surveying services on an asneeded basis, in an aggregateamountnottoexceed$950000forathreeyeartermbeginningMay22023 City Council 9 5/2/2023

16. Approve Agreements with JohnsonFrank & Associates, Inc., Stantec Consulting Services, Inc., and Towill, Inc. for OnCall Professional Land Surveying Services, with an Aggregate Amount Not to Exceed $2,450,000 for ThreeYear Terms (RFP No. 19090) (NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: 1. Authorize the City Manager to execute federal Caltrans agreements with JohnsonFrank & Associates, Inc., Stantec Consulting Services, Inc., and Towill, Inc. to provide oncall land surveying services on an asneeded basis, in an aggregate amount not to exceed $950,000 for a threeyear term beginning May 2, 2023 and expiring May 1, 2026, with an option for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Authorize the City Manager to execute nonfederal agreements with JohnsonFrank & Associates, Inc., Stantec Consulting Services, Inc., and Towill, Inc. to provide OnCall Land Surveying Services on an asneeded basis, in an aggregate amount not to exceed $1,500,000 for a threeyear term beginning May 2, 2023 and expiring May 1, 2026, with an option for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

17. Approve an Agreement with David Evans and Associates, Inc. in an Amount Not to Exceed $410,000 for the Landscape Architectural Design Services for a New Park at 10th St. and Flower St. for a ThreeYear Term (Project No. 221342) (Revive Santa Ana Program)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute an agreement with David Evans and Associates, Inc. to provide design, development of contract documents, and construction support for the proposed 10 and Flower Park project in the amount of $369,455, with a contingency of $40,545 for a total amount not to exceed $410,000, for a threeyear term beginning May 2, 2023 and expiring May 1, 2026, with an option for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

18. Amend Agreement with David Evans and Associates, Inc. for Design and Construction Support Services for the Standard – McFadden Park Project by an Additional $50,000 for the Remainder of the Agreement Term (Project No. 202729) (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute a first amendment to the agreement with David Evans and Associates, Inc. to provide design, development, and contract documents for the proposed StandardMcFadden Park project, to increase the contract by $43,505, with an approximate 15 percent contingency, for a total not to exceed amount of $50,000, for the remainder of the agreement term through August 16, 2024, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

19. Approve Agreements with AESCO, Inc., Alta Planning + Design, Inc., CWE, IDS Group, Inc., J. Smith & T. Muli, Inc., KPFF Consulting Engineers, Psomas, Shannon & Wilson, Tait & Associates, Inc., and Willdan Engineering for OnCall Engineering Services in an Aggregate Amount Not to Exceed $5,000,000 for up to a FiveYear Term (General and NonGeneral Fund)
Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with AESCO, Inc., Alta Planning + Design, Inc., CWE; IDS Group, Inc., J. Smith & T. Muli, Inc., KPFF Consulting Engineers, Psomas, Shannon & Wilson, Tait & Associates, Inc., and Willdan Engineering, to provide oncall engineering services for a shared aggregate amount not to exceed $5,000,000, for a threeyear term beginning May 2, 2023 and expiring May 1, 2026, with provisions for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

20. Approve Agreements with Bruce Anderson Enterprises, Inc. dba A’s Construction, EBS General Engineering, Inc., Palp, Inc. dba Excel Paving Co., Hardy & Harper, Inc., Vido Samarzich, Inc., and We R Builders, Inc. for Emergency Asphalt and Portland Cement Concrete (PCC) Services for a Total Amount Not to Exceed $3,000,000 for up to a FiveYear Term (NonGeneral Fund) Department(s): Public Works Agency
Recommended Action: Authorize the City Manager to execute agreements with Bruce Anderson Enterprises, Inc. dba A’s Construction, EBS General Engineering, Inc., Palp, Inc. dba Excel Paving Co., Hardy & Harper, Inc., Vido Samarzich, Inc., and We R Builders, Inc. to provide oncall asphalt and concrete placement services for a shared aggregate amount not to exceed $3,000,000, for a threeyear term beginning May 2, 2023 and expiring May 1, 2026 with provisions for two, oneyear extensions, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

21. Approve Amendment to Agreement with TSYS Merchant Solutions, LLC DBA Global Payments, Inc. for Online Debit and Credit Card and Electronic Fund Transfer Automated Clearing House (ACH) Merchant Payment Processing Services, Support and Maintenance, and Purchase of PointofSale Payment Terminals for a New Agreement Amount Not to Exceed $2,022,400
Department(s): Finance and Management Services
Recommended Action: Authorize the City Manager to execute a second amendment to the agreement with TSYS Merchant Solutions, LLC, doing business as Global Payments, Inc., for online debit and credit card payment processing, electronic fund transfer Automated Clearing House (“ACH”) payment processing, support and maintenance, and purchase of payment terminals. The amendment includes a base contract increase in the amount of $4,000 and general contingency increase in the amount of $120,000, for a new agreement amount not to exceed $2,022,400. The not to exceed amount includes a general contingency of $362,400 over the maximum life of the agreement. The amendment adds a base term commencing May 2, 2023 and expiring December 31, 2025, with provision for two renewal options (a threeyear and a oneyear), subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

22. Agreement with HCI Systems, Inc. for Fire Alarm System Devices Upgrade, Testing, Inspection, and Repair Services (General Fund)
Department(s): Police Department
C
City Council 11 5/2/2023
amendment adds a base term commencing May 2, 2023 and expiring December 31, 2025, with provision for two renewal options (a threeyear and a oneyear), subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

22. Agreement with HCI Systems, Inc. for Fire Alarm System Devices Upgrade, Testing, Inspection, and Repair Services (General Fund)
Department(s): Police Department
Recommended Action: 1. Authorize the City Manager to execute an agreement with HCI Systems, Inc. for upgrades to the fire alarm system devices at the Police Administration and Jail Buildings and testing and inspection services for a threeyear period from May 2, 2023 to June 30, 2026 in the amount of $837,792, plus a contingency of $40,000, for a total amount not to exceed $877,792, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

2. Approve an amendment to the Fiscal Year 20222023 Capital Improvement Program to include the Fire Alarm System Devices Upgrade project.

23. Adopt a Resolution for Fiscal Year 2023 Homeland Security Grant Program Funding in the Amount of $5,113,750
Department(s): Police Department
Recommended Action: Adopt Resolution No. 2023XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING THE CITY MANAGER AND THE CHIEF OF POLICE OR THEIR DESIGNEE(S) TO ENTER INTO AN AGREEMENT WITH THE STATE OF CALIFORNIA GOVERNOR’S OFFICE OF EMERGENCY SERVICES FOR THE FY2023 URBAN AREA SECURITY INITIATIVE FUNDING PROGRAM (authorizing the City Manager and/or the Chief of Police or their designee(s), to apply for the FY 2023 Urban Area Security Initiative grant and upon award, enter into an agreement with the State of California, California Governor’s Office of Emergency Services for the period September 1, 2023 through August 31, 2026, in the amount of $5,113,750, of which $835,000 is obligated to the Orange County Intelligence Assessment Center (Agreement No. 2023XXX)).

24. Resolution Accepting the Donation of Science, Technology, Engineering, and Mathematics (STEM) Focused Amenities at Madison Park and Angels Community Park from the University of California Irvine School of Education, and a Donation Agreement with the University of California Irvine School of Education for the Installation of these Amenities at Madison Park and Angels Community Park
Department(s): Parks, Recreation, and Community Services Recommended Action: 1. Adopt Resolution No. 2023XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ACCEPTING THE DONATION OF SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS (STEM) FOCUSED AMENITIES FROM THE UNIVERSITY OF CALIFORNIA, IRVINE SCHOOL OF EDUCATION TO PROMOTE STEM LEARNING OPPORTUNITIES AT MADISON PARK AND ANGELS COMMUNITY PARK

2. Authorize the City Manager to execute a donation agreement with The Regents of the University of California, Irvine School of Education for the installation of the STEMfocused amenities at Madison Park and Angels Community Park. The amenities are valued at approximately $249,000 and will come at no cost to the City. The agreement is valid from April 18, 2023, through December 31, 2023, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

25. Adopt Resolution for State of California Grant and Approve Appropriation Adjustment Recognizing$9000000ofStateGrantFundsfortheModernizationoftheSantaAna City Council 12 5/2/2023

25. Adopt Resolution for State of California Grant and Approve Appropriation Adjustment Recognizing $9,000,000 of State Grant Funds for the Modernization of the Santa Ana Civic Center
Department(s): Community Development Agency
Recommended Action: 1. Adopt Resolution No. 2023XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING APPLICATION FOR SPECIFIED GRANT FUNDS FROM BUDGET ACT 2022/23 (BUDGET ACT OF 2022, AB179, CHAPTER 249, CONTROL SECTION 19.56, ITEM 37901010001(K) OTHER COMMUNITY SERVICES, (24) $9,000,000 TO THE CITY OF SANTA ANA FOR THE MODERNIZATION OF THE SANTA ANA CIVIC CENTER (SACC))

2. Approve an Appropriation Adjustment recognizing State of California Grant Funds in the amount of $9,000,000. (requires five affirmative votes)

26. Adopt Ordinance No. NS3039 – AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SANTA ANA MUNICIPAL CODE SECTION 86 RELATING TO LICENSE REQUIREMENTS OF CONTRACTORS AND
SUBCONTRACTORS (includes determination that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, as there is no possibility it will have a significant effect on the environment, and it is not a “project,” as defined in Section 15378 of the CEQA Guidelines)
First reading at the April 18, 2023 City Council meeting, approved by a vote of 70.

Published in the Orange County Reporter on April 21, 2023.

Department(s): Planning and Building Agency
Recommended Action: Place ordinance for second reading and adopt. **END OF CONSENT CALENDAR**
PUBLIC HEARINGS
PUBLIC COMMENTS – Members of the public may address the City Council on each of the Public Hearing items.

27. Public Hearing – Approve the Fiscal Year 202324 Annual Action Plan and Budgets for the Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant, and Authorize Submission to the U.S. Department of Housing and Urban Development
Legal Notice published in the Orange County Register, La Opinion, and Nguoi Viet on March 20, 2023.

Department(s): Community Development Agency
Recommended Action: 1. Approve the Fiscal Year 202324 Annual Action Plan and authorizesubmissiontotheUSDepartmentofHousingandUrbanDevelopment City Council 13 5/2/2023
the Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant, and Authorize Submission to the U.S. Department of Housing and Urban Development
Legal Notice published in the Orange County Register, La Opinion, and Nguoi Viet on March 20, 2023.

Department(s): Community Development Agency
Recommended Action: 1. Approve the Fiscal Year 202324 Annual Action Plan and authorize submission to the U.S. Department of Housing and Urban Development.

2. Approve the Fiscal Year 202324 budgets for the Community Development Block Grant program in the total amount of $4,808,057; HOME Investment Partnerships grant in the amount of $1,605,667 from Grant Year 2023 allocation and a reallocation of $6,180,123 in prior year program funds; and Emergency Solutions Grant in the amount of $447,249 from Grant Year 2023 allocation. All proposed activities’ budgets will be proportionally increased or decreased from the estimated funding levels to match actual allocation amounts.

3. Direct the City Attorney to finalize and authorize the City Manager to execute memorandums of understandings with various city departments awarded funds as part of the approved Community Development Block Grant program budget for a term beginning July 1, 2023 through June 30, 2026, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

4. Direct the City Attorney to finalize and authorize the City Manager to execute a memorandum of understanding with the Santa Ana Police Department and agreements with nonprofit homeless service providers awarded funds as part of the approved Emergency Solutions Grant program budget for a term beginning July 1, 2023 through June 30, 2024, subject to nonsubstantive changes approved by the City Manager and City Attorney (Agreement No. 2023XXX).

5. Direct the City Attorney to finalize and authorize the City Manager to execute amendments to the current Community Development Block Grant subrecipient agreements for America on Track, The Delhi Center, and the Orange County Children’s Therapeutic Arts Center (Agreement No. 2023XXX).

WORK STUDY SESSION

28. Fiscal Year 202324 Budget Work Study Session
Department(s): Finance and Management Services
Recommended Action: Discuss and provide direction to staff.

COUNCILMEMBER REQUESTED ITEMS

29. Discuss and Consider Directing the City Attorney and City Manager to Make a Public Report on the Homeless Federal Agreement and the City’s Plans to Address Enforcement and Impacts Related to the Upcoming Expiration of the Agreement as it Relates to Funding, CleanUps, and Shelter Services – Mayor Amezcua

30. Discuss Request to “Call Up” Planning Commission Item Conditional Use Permit No. 202309, Request to Upgrade the Existing Type 41 OnSale Alcoholic Beverage Control (ABC) License to a Type 47 OnSale Alcoholic Beverage Control (ABC) License to Allow the OnPremises Sale of Beer, Wine, and Distilled Spirits at an Existing Eating Establishment Located at 1208 East McFadden Avenue located within the Planned Shopping Center (C4) Zoning District (Mariscos Hector Sports Grill) and Consider Scheduling a Public Hearing – Councilmember Penaloza
CITY MANAGER COMMENTS
COUNCIL COMMENTS
AB1234 DISCLOSURE – If the City paid for travel or other expenses this is the time for members of the Council to provide a brief oral report on attendance of any regional board or commission meeting or any conference, meeting or event attended.

1. April 26 – 28, 2023 Mayor Pro Tem Lopez – NALEO Policy Institute on Economic Mobility Conference in New York, NY
ADJOURNMENT – Adjourn the City Council meeting and convene to the Housing Authority meeting.

Future Items

1. Budget – Work Study Session
HOUSING AUTHORITY
CALL TO ORDER
ATTENDANCE Authority Members Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
Vice Chair Jessie Lopez
Chair Valerie Amezcua
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
Recording Secretary Jennifer L. Hall
ROLL CALL
ADDITIONS\DELETIONS TO THE HOUSING AUTHORITY AGENDA
PUBLIC COMMENTS – Members of the public may address Housing Authority on items on the Housing Authority agenda.

CONSENT CALENDAR
City Council 15 5/2/2023
meeting.

Future Items

CONSENT CALENDAR
RECOMMENDED ACTION: Approve staff recommendations on the following Consent Calendar Items: 1 and 2.

1. Excused Absences
Department(s): City Clerk’s Office
Recommended Action: Excuse the absent members.

2. Quarterly Report for the Housing Choice Voucher Program for the Period of January 1, 2023 to March 31, 2023
Department(s): Community Development Agency
Recommended Action: Receive and file the Quarterly Report for the Housing Choice Voucher Program for the period of January 1, 2023 to March 31, 2023. **END OF CONSENT CALENDAR**
HOUSING AUTHORITY MEMBER COMMENTS
ADJOURNMENT – Adjourn the Housing Authority meeting.

City Council 16 5/2/2023
ADJOURNMENT – Adjourn the Housing Authority meeting.

City Council 17 5/2/2023
Finance and Management Services
www.santa-ana.org/finance
Item # 6
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 2, 2023
TOPIC: Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2022

AGENDA TITLE
Receive and File Single Audit Report for the Fiscal Year Ended June 30, 2022

RECOMMENDED ACTION
Receive and file Single Audit Report for the Fiscal Year Ended June 30, 2022.

DISCUSSION
All non-Federal entities that expend $750,000 or more of Federal awards each fiscal year are required to obtain a Single Audit to comply with the regulations of the Federal Office of Management and Budget (OMB). The Single Audit for the fiscal year ended June 30, 2022 has been completed by the City’s independent auditor, Clifton Larson Allen LLP.

During the fiscal year 2021-22, the City administered twenty-six (26) Federal grant programs and expended $105.8 million, representing an increase of $0.2 million from the prior fiscal year. The expenditures remained relatively consistent with the prior year due to continued funding in response to the COVID-19 pandemic.

Of the twenty-six (26) programs administered by the City, the auditors identified four major programs for the audit: Housing Voucher Cluster ($46.5 million), HOME Investment Partnerships Program ($2.1 million), Coronavirus State and Local Fiscal Recovery ($13.3 million), and the Emergency Rental Assistance Program ($21.7 million).

The Finance and Management Services Agency is pleased to report that the City received an unmodified opinion commonly known as a clean opinion; which is considered the most favorable conclusion for the audit. The unmodified opinion indicates that the City has complied, in all material respects, with the compliance requirements for the fiscal year ended June 30, 2022.

However, the auditors disclosed one finding related to Coronavirus State and Local Fiscal Recovery Fund program for not meeting requirements to check the federal database to confirm that selected vendors have not been suspended or debarred from participating in federally funded programs. There were no instances of noncompliance, City Council 6 – 1 5/2/2023
Receive and file the Single Audit Report for the Fiscal Year Ended June 30, 2022 May 2, 2023

Page 2 ends

but for some contracts, the grant managing departments did not maintain supporting documentation to prove that staff queried the federal database. The City’s Purchasing Policies and Procedures (Policy) require the grant managing departments to adhere to procurement standards for federal grant management including suspension and debarment. Program staff will follow the Policy to ensure adequate documentation of verifications is maintained to prevent future findings.

The report (Exhibit 1) is posted and available on the City’s website (https://www.santaana.org/financial-reports) along with prior fiscal years. In addition, the report has been submitted for certification as part of the Single Audit Data Collection Form process. The Single Audit Report is required to be submitted by March 31.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT

1. FY 2021-22 Single Audit Report
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Kristine Ridge, City Manager
City Council 6 – 2 5/2/2023

CITY OF SANTA ANA, CALIFORNIA

SINGLE AUDIT OF FEDERAL AWARDS

AND OTHER FINANCIAL INFORMATION
JUNE 30, 2022
EXHIBIT 1
City Council 6 – 3 5/2/2023

CITY OF SANTA ANA, CALIFORNIA
JUNE 30, 2022

TABLE OF CONTENTS
Page
Number
Independent Auditors Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 - 2
Independent Auditors Report on Compliance for Each Major Federal Program, Report on Internal Control over Compliance, Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance, Schedule of Expenditures of State Awards Required by the State of California, and Housing Authority of the City of Santa Ana Financial Data Schedules Required by the US Department of Housing and Urban Development 3 - 6 Schedule of Expenditures of Federal Awards 7 - 10
Schedule of Expenditures of State Awards 11
Notes to the Schedules of Expenditures of Federal and State Awards 12 Housing Authority of the City of Santa Ana Financial Data Schedules:

Financial Data Schedule of Assets, Liabilities, and Equity as of June 30, 2022 13 Financial Data Schedule of Revenues, Expenses, and Changes in Equity for the Fiscal Year Ended June 30, 2022 14
Schedule of Findings and Questioned Costs 15 - 16
Summary Schedule of Prior-Year Audit Findings 17
City Council 6 – 4 5/2/2023
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
1 INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable City Council
of the City of Santa Ana
Santa Ana, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Santa Ana, California (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Citys basic financial statements and have issued our report thereon dated December 28, 2022.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Citys internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Citys internal control. Accordingly, we do not express an opinion on the effectiveness of the Citys internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entitys financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

City Council 6 – 5 5/2/2023
Honorable City Council
of the City of Santa Ana
Santa Ana, California
2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Citys financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Citys internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Citys internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
December 28, 2022
City Council 6 – 6 5/2/2023
3 INDEPENDENT AUDITORS REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM, REPORT ON INTERNAL CONTROL OVER COMPLIANCE,

REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED

BY THE UNIFORM GUIDANCE, SCHEDULE OF EXPENDITURES OF STATE

AWARDS REQUIRED BY THE STATE OF CALIFORNIA, AND HOUSING AUTHORITY

OF THE CITY OF SANTA ANA FINANCIAL DATA SCHEDULES REQUIRED BY

THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Honorable City Council
of the City of Santa Ana
Santa Ana, California
Report on Compliance for Each Major Federal Program
Opinion on the Major Federal Program
We have audited the City of Santa Anas (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the Citys major federal programs for the year ended June 30, 2022. The Citys major federal programs are identified in the summary of auditors results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30, 2022.

Basis for Opinion on each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditors Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program. Our audit does not provide a legal determination of the Citys compliance requirements referred to above.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
City Council 6 – 7 5/2/2023
Honorable City Council
of the City of Santa Ana
Santa Ana, California
4 Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the Citys federal programs.

Auditors Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Citys compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentations, or override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Citys compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
exercise professional judgment and maintain professional skepticism throughout the audit. identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Citys compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
obtain an understanding of the Citys internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Citys internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditors Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify a certain deficiency in internal control over compliance that we consider to be a significant deficiency.

City Council 6 – 8 5/2/2023
Honorable City Council
of the City of Santa Ana
Santa Ana, California
5 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2022-001 to be a significant deficiency.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Government Auditing Standards requires the auditor to perform limited procedures on the Citys response to the internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The Citys response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance, the Schedule of Expenditures of State Awards Required by the State of California, and the Housing Authority of the City of Santa Ana Financial Data Schedules Required by the US Department of Housing and Urban Development
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Santa Ana as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Citys basic financial statements. We issued our report thereon dated December 28, 2022, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards, the Schedule of Expenditures of State Awards, and the Housing Authority of the City of Santa Ana Financial Data Schedules are presented for purposes of additional analysis as required by the Uniform Guidance, the State of California, and the US Department of Housing and Urban Development, respectively, and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

City Council 6 – 9 5/2/2023
Honorable City Council
of the City of Santa Ana
Santa Ana, California
6 The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards, the Schedule of Expenditures of State Awards, and the Housing Authority of the City of Santa Ana Financial Data Schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

CliftonLarsonAllen LLP
Irvine, California
March 28, 2023
City Council 6 – 10 5/2/2023

CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2022
Federal Grantor / Pass-Through Total Passed
Pass-Through Grantor / Entity Identifying Federal Through to Program / Cluster Title Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Direct Programs:

Community Development Block Grants - Entitlement Grants Cluster:

Community Development Block Grants N/A 4,964,158 $ 1,024,514 $ COVID-19 - Community Development Block Grants N/A 716,437 222,608 Neighborhood Stabilization Program 1 N/A 3,975 -
Neighborhood Stabilization Program 3 N/A 3,937 -
Subtotal Community Development Block Grants -
Entitlement Grants Cluster 5,688,507 1,247,122
Emergency Solutions Grant Program N/A 508,071 378,877
COVID-19 - Emergency Solutions Grant Program N/A 6,517,376 5,280,487 Subtotal Emergency Solutions Grant Program 7,025,447 5,659,364 Housing Voucher Cluster:

Section 8 Housing Choice Vouchers N/A 43,986,581 -
COVID-19 - Emergency Housing Voucher Rental Assistance (ARPA N/A 132,291 - COVID-19 - Emergency HSG Voucher Rental Assist-Admin (ARPA N/A 83,252 - Subtotal Section 8 Housing Choice Vouchers 44,202,124 - Mainstream Vouchers N/A 2,276,351 -
COVID-19 - Mainstream Vouchers - CARES Act - Admin Fees N/A 4,852 - Subtotal Mainstream Vouchers 2,281,203 - Subtotal Housing Voucher Cluster 46,483,327 - Family Self-Sufficiency Program N/A 54,659 -
Family Self-Sufficiency Program N/A 33,199 -
Subtotal Family Self-Sufficiency Program 87,858 -
HOME Investment Partnerships Program N/A 2,132,926 -
COVID-19 - HOME - American Rescue Plan Program N/A 16,817 - Subtotal HOME Investment Partnerships Program 2,149,743 - ARRA - Neighborhood Stabilization Program 2 17 -
Total U.S. Department of Housing and Urban Development 61,434,899 6,906,486 U.S. Department of Justice Direct Programs:

Equitable Sharing Program (Asset Forfeiture) N/A 430,124 - Public Safety Partnership and Community Policing Grants N/A 731,634 - Body Worn Camera Policy and Implementation N/A 28,598 - Passed through County of Orange Sheriff's Department:

Edward Byrne Memorial Justice Assistance Grant Program:

Byrne Justice Assistance Grant 2020 2020-DJ-BX-0773 82,577 - Byrne Justice Assistance Grant 2021 15PBJA-21-GG-01188-JAGX 6,640 - Subtotal Edward Byrne Memorial Justice Assistance Grant Program 89,217 - Passed through Human Options:

Culturally and Linguistically Specific Services Program 2016-WE-AX-0054 78,240 - Total U.S. Department of Justice 1,357,813 -
(Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.

16.016
Federal

14.218
Assistance
Listing
Number

14.896

14.218

14.871

14.879

14.871

14.896

14.239

14.218

14.231

14.256

16.738

16.922

16.835

16.710
7 City Council 6 – 11 5/2/2023

CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2022 (Continued)
Federal Grantor / Pass-Through Passed
Pass-Through Grantor / Entity Identifying Federal Through to Program / Cluster Title Number Expenditures Subrecipients U.S. Department of Labor
Workforce Innovation and Opportunity Act (WIOA) Cluster:

Passed through CA Employment Development Department:

WIOA Adult Program AA111027 139,671 $ - $
WIOA Adult Program AA211027 488,937 - Subtotal WIOA Adult Activities 628,608 - WIOA Dislocated Worker Formula Grants AA111027 253,007 - WIOA Dislocated Worker Formula Grants AA211027 332,430 - WIOA Dislocated Worker Formula Grants (Rapid Response) AA111027 40,461 - WIOA Dislocated Worker Formula Grants (Rapid Response) AA211027 176,622 - Subtotal WIOA Dislocated Worker Formula Grants 802,520 - WIOA Youth Activities AA111027 115,997 58,775
WIOA Youth Activities AA211027 720,322 384,379 Subtotal WIOA Youth Activities 836,319 443,154 Passed through County of Orange Community Resources Agency:

WIOA Adult Program MA-012-22010003 5,697 -
Passed through County of Orange Community Resources Agency:

WIOA Dislocated Worker Formula Grants MA-012-20011850 15,000 - Subtotal Workforce Innovation and Opportunity Act (WIOA) Cluster 2,288,144 443,154 Passed through CA Employment Development Department:

WIOA National Dislocated Worker Grants AA011027 883 -
WIOA National Dislocated Worker Grants AA111027 14,940 - Subtotal WIOA National Dislocated Worker Grants 15,823 - Total U.S. Department of Labor 2,303,967 443,154
U.S. Department of Transportation
Highway Planning and Construction Cluster:

Passed through CA Department of Transportation:

National Highway Performance Program BRLS 5063(184) 314,601 - Bicycle Corridor Improvement CMAQ 5063(181) BCI 19,481 - Bicycle Corridor Improvement CMAQ 5063(182) BCI 1,310 - Bicycle Corridor Improvement CMAQ 5063(183) BCI 1,188,229 - Bicycle Corridor Improvement CMAQ 5063(200) BCI 6,526 - Highway Safety Improvement Program HSIPL 5063(171) 102,061 - Highway Safety Improvement Program HSIPL 5063(186) 374 - Highway Safety Improvement Program HSIPL 5063(187) 202,838 - Highway Safety Improvement Program HSIPL 5063(188) 1,871 - Highway Safety Improvement Program HSIPL 5063(190) 3,831 - Highway Safety Improvement Program HSIPL 5063(204) 6,643 - Subtotal Highway Planning and Construction Cluster 1,847,765 - (Continued)
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.

20.205

17.259

17.278

17.277

17.258

20.205

17.278

17.259

17.258

20.205

17.258

17.278

20.205

20.205
Federal
Assistance
Listing
Number
8 City Council 6 – 12 5/2/2023

State and Community Highway Safety:

Passed through CA Office of Traffic Safety:

Selective Traffic Enforcement PT21189 150,994 $ - $
Selective Traffic Enforcement PT22130 403,697 -
Public Education on Bicycle Safety PS20034 66,239 -
Public Education on Bicycle Safety PS22025 35,300 - Subtotal State and Community Highway Safety Cluster 656,230 - Total U.S. Department of Transportation 2,503,995 - U.S. Department of Treasury Direct Programs:

COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) N/A 12,233,442 955,430 Passed through the State Water Resource Control Board:

COVID-19 - Coronavirus State & Local Fiscal Recovery (ARPA) CA3010038 1,069,505 - COVID-19 - Emergency Rental Assistance Program
Direct Program:

COVID-19 - Emergency Rental Assistance Program 1 N/A 6,414,753 6,388,587 COVID-19 - Emergency Rental Assistance Program 2 N/A 13,378,357 13,157,659 Passed through CA Department of Housing & Community Development:

COVID-19 - Emergency Rental Assistance Program - State 21-ERAP-20081 1,871,804 1,857,615 Subtotal COVID-19 - Emergency Rental Assistance Program 21,664,914 21,403,861 Total U.S. Department of Treasury 34,967,861 22,359,291 U.S. Institute of Museum and Library Services
Passed through CA State Library: 40-9114 16,150 -
Grants to States (Library Services and Technology Act)
U.S. Small Business Administration
Direct Program:

COVID-19 - Shuttered Venue Operators Grant Program N/A 689,120 - U.S. Department of Homeland Security Homeland Security Grant Program:

Passed through CA Office of Emergency Services:

Urban Area Security Initiative 2019 2019-0035 059-95010 896,163 194,190 Passed through City of Anaheim:

Urban Area Security Initiative 2018 2018-0054 274,427 - Urban Area Security Initiative 2020 2020-0095 514,351 - Subtotal Homeland Security Grant Program 1,684,941 194,190 Passed through County of Orange Sheriff's Department:

Emergency Management Performance Grants EMPG 2021-0015 48,338 - Total U.S. Department of Homeland Security 1,733,279 194,190 (Continued) See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.

Federal
Assistance
Listing

21.027
Number

21.023

45.310

59.075

21.023

97.067

97.042

20.600

21.027

20.600
9 City Council 6 – 13 5/2/2023

COVID-19 - Community Programs to Improve Minority Health Grant N/A 137,782 $ 82,525 $ Passed through County of Orange Social Services Agency:

Temporary Assistance for Needy Families WGM0319 624,147 - Total U.S. Department of Health and Human Services 761,929 82,525 Total Expenditures of Federal Awards $ 29,985,646 105,769,013 $ See accompanying Notes to the Schedules of Expenditures of Federal and State Awards.

93.137
Number
Federal
Assistance
Listing

93.558
10 City Council 6 – 14 5/2/2023

CITY OF SANTA ANA, CALIFORNIA
Schedule of Expenditures of State Awards
For the Fiscal Year Ended June 30, 2022
Program State
Identification Awards
Grantor / Program Title Number Expenditures
CA Business Consumer Services and Housing Agency
Homeless Housing Assistance & Prevention 20-HHAP-00019 5,043,068 $ Homeless Housing Assistance & Prevention 2 21-HHAP-00012 2,877,699 Homeless Housing Assistance & Prevention 3 22-HHAP-10004 637,260 8,558,027 CA Department of Housing and Community Development
Affordable Housing Sustainable Communities Program 16-AHSC-11200 178,888 SB2 Planning Grants Program 19-PGP-13895 241,962
Local Early Action Planning Program 20-LEAP-15676 95,099 Permanent Local Housing Allocation 20-PLHA-15193 2,665,322 3,181,271
CA Department of Justice
Sexual Assault Evidence Grant 2019-2020-02 12,174 CA Department of Resources Recycling and Recovery Oil Payment Program OPP10 14,181
Beverage Container Payment Program FY 19/20 11,331
25,512
CA Department of Transportation
Active Transportation Program ATPL-5063(170) 1,043,943
Active Transportation Program ATPL-5063(174) 255,000
Active Transportation Program ATPL-5063(177) 1,032,892
Active Transportation Program ATPL-5063(178) 271,063
Active Transportation Program - SB1 Augmentation ATPSB1L-5063(191) 85,000 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(195) 9,342 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(196) 802,103 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(197) 281,637 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(198) 564,587 Active Transportation Program - SB1 Augmentation ATPSB1L-5063(199) 92,576 4,438,143
CA Department of Water Resources
Prop 1 IRWMP Disadvantaged Communities Involvement 4600011889 100,000 Prop 1 Integrated Regional Water Management Program 4600013842 66,259 166,259
CA Natural Resources Agency
Statewide Park Development & Community Revitalization C9801033 138,189 Statewide Park Development & Community Revitalization C9801034 425,811 Advanced Metering Infrastructure GF1806-0 1,870,953
Proposition 68 Urban Flood Protection UF8807-0 157,991 2,592,944 CA State Coastal Conservancy
Santa Ana River Conservancy Program 19-097, 19-098, 19-158 601,892 CA State Library Mobile Library Solutions Grant SVBT-026 12,353 CA Workforce Development Board Prison to Employment Program M0113404 422,464
Prison to Employment Program M0113521 594,961
1,017,425
Total Expenditures of State Awards $ 20,606,000
See accompanying Notes to the Schedules of Expenditures of Federal and State Awards. 11 City Council 6 – 15 5/2/2023
12 CITY OF SANTA ANA, CALIFORNIA

NOTES TO THE SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE AWARDS FOR THE YEAR ENDED JUNE 30, 2022

1. BASIS OF PRESENTATION
The accompanying Schedules of Expenditures of Federal and State Awards (the Schedules) include the federal and state award activities of the City of Santa Ana, California (the City), under programs of the federal government and the State of California, as well as federal and state financial assistance passed through other government agencies for the year ended June 30, 2022. The information in the Schedule of Expenditures of Federal Awards (SEFA) is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedules present only a selected portion of the operations of the City, they are not intended to, and do not, present the financial statements of the City. The Citys reporting entity is defined in Note 1 of the notes to the Citys financial statements.

2. BASIS OF ACCOUNTING
The accompanying Schedules are presented using the modified accrual basis of accounting for governmental funds and the accrual basis for proprietary funds, which is described in the Note 1 of the notes to the Citys financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. The information in the SEFA is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements. Pass-through entity identifying numbers are identified where available.

3. INDIRECT COST RATE
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

City Council 6 – 16 5/2/2023

CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Assets, Liabilities, and Equity June 30, 2022 Line Item No. Account Description
Family Self
Sufficiency
Program
Housing Choice Vouchers Mainstream Vouchers
Housing Choice Vouchers CARES ACT Mainstream Vouchers CARES ACT Emergency Housing Voucher ARPA Total Assets Current Assets: 111 Cash - Unrestricted - $ 2,396,325 $ 109,435 $ 428 $ - $ 29,111 $ 2,535,299 $ 113 Cash - Other Restricted - 629,733 - - - 572,164 1,201,897 115 Cash - Restricted for Payment of Current Liabilities - 209,911 - - - - 209,911 100 Total Cash - 3,235,969 109,435 428 - 601,275 3,947,107 Receivables: 122 Accounts Receivable - HUD Other Projects - 74,901 36,508 - - - 111,409 125 Accounts Receivable - Miscellaneous - - - - - - - 128 Fraud Recovery - 12,776 - - - - 12,776 128.1 Allowance for Doubtful Accounts - Fraud - (4,599) - - - - (4,599) 129 Accrued Interest Receivable - - - - - - - 120 Total Receivables, Net of Allowances for Doubtful Accounts - 83,078 36,508 - - - 119,586 142 Prepaid Expenses and Other Assets - - - - - - - 150 Total Current Assets - 3,319,047 145,943 428 - 601,275 4,066,693 Noncurrent Assets: Fixed Assets: 164 Furniture, Equipment & Machinery - Administration - - - - - - - 166 Accumulated Depreciation - - - - - - - 160 Total Fixed Assets, Net of Accumulated Depreciation - - - - - - - 174 Other Assets - - - - - - - 180 Total Non-Current Assets - - - - - - - 290 Total Assets and Deferred Outflows of Resources - $ 3,319,047 $ 145,943 $ 428 $ - $ 601,275 $ 4,066,693 $ Liabilities and Equity Liabilities: 312 Accounts Payable - HUD PHA Programs <=90 days $ - $ 104,717 $ 110 $ - $ - $ - $ 104,827 322 Accrued Compensated Absences - Current Portion 31,751 - - - - - 31,751 331 Accounts Payable - HUD PHA Programs - - - - 428 - 428 342 Deferred Revenues - 8,177 - - - 155,750 163,927
345 Other Current Liabilities - 209,911 - - - - 209,911 346 Accrued Liabilities - Other - - - - - - - 310 Total Current Liabilities 354,556 - 110 428 - 155,750 510,844 Noncurrent Liabilities: 353 Noncurrent Liabilities - Other 629,733 - - - - - 629,733 354 Accrued Compensated Absences - Non Current - 95,251 - - - - 95,251 350 Total Noncurrent Liabilities 724,984 - - - - - 724,984 300 Total Liabilities 1,079,540 - 110 428 - 155,750 1,235,828 Equity: 509.3 Restricted Fund Balance - - - - - 416,414 416,414 511.3 Assigned Fund Balance 2,239,507 - 145,833 - - 29,111 2,414,451 Unassigned Fund Balance - - - - - - - 513 Total Equity - Net Assets/Position 2,239,507 - 145,833 - - 445,525 2,830,865 600 Total Liabilities, Deferred Inflows of Resources and Equity - Net Assets/Position $ 3,319,047 - $ 145,943 $ 428 $ - $ 601,275 $ 4,066,693 $ 13 City Council 6 – 17 5/2/2023

CITY OF SANTA ANA, CALIFORNIA
Housing Authority of the City of Santa Ana
Financial Data Schedule of Revenues, Expenses, and Changes in Equity For the Fiscal Year Ended June 30, 2022 Line Item No. Account Description Family Self
Sufficiency
Program
Housing Choice Vouchers Mainstream Vouchers
Housing Choice Vouchers CARES ACT Mainstream Vouchers CARES ACT Emergency Housing Voucher ARPA Total Revenues 70600 HUD PHA Operating Grants 87,858 $ 44,108,561 $ 2,190,609 $ - $ 4,852 $ 597,477 $ 46,989,357 $ 71100 Investment Income - Unrestricted - ADMIN - - - - - - - 71400 Fraud Recovery - 1,200 - - - - 1,200 71500 Other Revenue - 209,307 - - - 27,991 237,298 72000 Investment Income - Restricted - HAP - - - - - - - 70000 Total Revenue 44,319,068 87,858 2,190,609 - 4,852 625,468 47,227,855 Expenses Administrative: 91100 Administrative Salaries 1,105,122 - 87,754 - 2,992 41,387 1,237,255 91200 Auditing Fees 12,486 - 305 - 116 - 12,907 91400 Advertising and Marketing 35,093 - - - - - 35,093 91500 Employee Benefit Contributions - Administrative 739,243 - 38,735 - 1,430 12,454 791,862 91600 Other Operating - Administrative - 700,482 14,175 - - 130 714,787 91800 Travel, Training & Transportation - - - - - - - 91810 Allocated Overhead 121,920 - 9,158 - 314 4,337 135,729 91900 Other 56,100 - - - - 900 57,000 91000 Total Operating - Administrative Expenses 2,770,446 - 150,127 - 4,852 59,208 2,984,633 Tenant Services: 92100 Tenant Services - Salaries - 62,936 - - - - 62,936 92300 Employee Benefit Contributions - Tenant Services - 24,922 - - - - 24,922 92500 Total Tenant Services - 87,858 - - - - 87,858 General Expenses: 96140 All Other Insurance - - - - - - - 96200 Other General Expenses 708,790 - - - - - 708,790 96210 Compensated Absences - - - - - - - 96000 Total Operating - General Expenses 708,790 - - - - - 708,790 96900 Total Operating Expenses 3,479,236 87,858 150,127 - 4,852 59,208 3,781,281 97000 Excess Operating Revenue over Operating Expenses 40,839,832 - 2,040,482 - - 566,260 43,446,574 97300 Housing Assistance Payments 40,505,981 - 2,122,477 - - 132,291 42,760,749 97350 HA Portability-In 24,882 - 3,747 - - 24,044 52,673 90000 Total Expenses 44,010,099 87,858 2,276,351 - 4,852 215,543 46,594,703 10093 Transfers between Program & Project-In - - - - - - - 10094 Transfers between Program & Project-Out - - - - - - - 10000 Excess (Deficiency) of Operating Revenues Over (Under) Expenses $ 308,969 - $ (85,742) $ - $ - $ 409,925 $ 633,152 $ Memo Account Information: 11030 Beginning Equity 1,930,538 - 231,575 - - 35,600 2,197,713 11040 Prior period Adjustments and Equity Transfers - - - - - - - 11050 Changes in Compensated Absence Balance - - - - - - - 11200 Unit Months Available 36,140 - 2,085 - - - 38,225 11210 Number of Unit Months Leased 32,223 - 1,394 - - - 33,617 11170 Administrative Fee Equity - 2,239,507 145,833 - - 29,111 2,414,451 11180 Housing Assistance Payments Equity - - - - - 416,414 416,414 Line 11170 & 11180 - 2,239,507 145,833 - - 445,525 $ 2,830,865 Line 513 - 2,239,507 145,833 - - 445,525
$ - - $ - $ - $ - $ - $
14 City Council 6 – 18 5/2/2023
15 CITY OF SANTA ANA, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2022
Section I Summary of Auditors Results
Financial Statements

1. Type of auditors report issued: Unmodified

2. Internal control over financial reporting:

Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? yes x none reported

3. Noncompliance material to financial
statements noted? yes x no
Federal Awards

1. Internal control over major federal programs:

Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? x yes none reported

2. Type of auditors report issued on
compliance for major federal programs: Unmodified

3. Any audit findings disclosed that are
required to be reported in accordance
with 2 CFR 200.516(a)? yes x no
Identification of Major Federal Programs
Assistance Listings Number(s) Name of Federal Program or Cluster

14.871, 14.879 Housing Voucher Cluster

14.239 HOME Investment Partnerships Program

21.027 Corona Virus State & Local Fiscal Recovery

21.023 Emergency Rental Assistance Program
Dollar threshold used to distinguish between
Type A and Type B programs: $ 3,000,000
Auditee qualified as low-risk auditee? x yes no
City Council 6 – 19 5/2/2023
16 CITY OF SANTA ANA, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022
Section II Financial Statement Findings
Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III Findings and Questioned Costs Major Federal Programs 2022-001 - Suspension and Debarment
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Period: March 3, 2021, through December 31, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of suspension and debarment. The City should have internal controls designed to ensure compliance with those provisions.

Condition: The City was not able to provide supporting documentation that the City verified the vendor was not suspended or debarred prior to entering the transaction.

Questioned Costs: None.

Context: There were twenty-five vendors during FY 21-22 that were a covered transaction for this program.

Cause: The City did not maintain supporting documentation that the verification of suspension or debarment was performed prior to entering into a contract for three of the seven samples tested.

Effect: The auditor noted no instances of noncompliance with the provisions of suspension, and debarment; however, we were not able to verify that the City followed their internal controls to ensure the vendor was not suspended or debarred prior to entering the transaction.

Repeat Finding: This is not a repeat finding.

Recommendation: We recommend the City implement procedures to ensure that verification documentation for suspension and debarment is maintained to support the City's internal control over compliance.

Views of Responsible Officials: There is no disagreement with the audit finding. The Citys Purchasing Policies & Procedures require the grant managing departments to adhere to the Uniform Guidance requirements and maintain procurement documentation related to Federal grants including suspension and debarment. City staff assigned to manage or support federal grant-funded projects will check sam.gov to ensure their vendors are not excluded parties prior to selecting vendors and maintain supporting documentation.

City Council 6 – 20 5/2/2023
17 CITY OF SANTA ANA, CALIFORNIA

SUMMARY SCHEDULE OF PRIOR-YEAR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2022
Section I Financial Statement Findings
None noted.

Section II Findings and Questioned Costs Major Federal Programs Finding 2021-001
Federal Agency: U.S. Department of Labor (DOL)
Federal Program Title: WIOA Youth Activities
Federal Assistance Listing Number: 17.259
Award Period: April 10, 2020 through March 31, 2022
Type of Finding: Other Matter
Criteria or Specific Requirement: In accordance with (Section 129(c)(4)), WIOA, 128 Stat. 1510), Not less than 20 percent of Youth Activity funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences.

Condition: Total WIOA Youth Activities expenditures used to provide paid and unpaid work experiences was less than 20% of total WIOA Youth Activities expenditures less administrative expenditures.

Status: Corrected.

City Council 6 – 21 5/2/2023
City Council 6 – 22 5/2/2023
Community Development Agency
www.santa-ana.org/community-development
Item # 7
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 2, 2023
TOPIC: Housing Division Quarterly Report
AGENDA TITLE:

Quarterly Report for Housing Division Projects and Activities for the Period of January 1, 2023 to March 31, 2023

RECOMMENDED ACTION
Receive and file the Quarterly Report for Housing Division Projects and Activities for the period of January 1, 2023 to March 31, 2023.

DISCUSSION
This report for the quarter ending on March 31, 2023 provides information for all of the affordable housing projects and activities for the City’s Housing Division. The report is divided into seven sections: Loan Activity, Loan Portfolio Management and Monitoring, Density Bonus Housing Agreements, Development Impact Fee Deferral Agreements, Rent Stabilization, Affordable Housing Funds and Commitments, and Development Projects.

Loan Activity
Applications
The Housing Division offers several different programs including down payment assistance for first-time homebuyers and rehabilitation grants for mobile homes and single-family homes. Inquiries are received from the public and applications are mailed out, received, and approved for these programs on a continual basis. Table 1 shows the number of inquiries and applications sent out, received, and approved by type for the quarter and for the total fiscal year:

Table 1: Applications Sent Out, Received & Approved
Inquiries Applications
Sent Out
Applications
Received
Applications
Approved Program
Q3 Total
FY Q3 Total FY Q3 Total FY Q3 Total FY
Residential Rehabilitation
Grant Program 0 80 0 50 0 25 1 15
Homeownership / Down
Payment Assistance
Program
27 123 27 123 9 17 5 11
City Council 7 – 1 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 2 ends

Loan Subordinations 0 0 0 0 0 0 0 0
The number of applications received is typically lower than the number of applications sent out in any given period due to the stringent program guidelines for eligibility regulated by the federal government, which makes it difficult for most applicants to qualify.

The City of Santa Ana’s Residential Rehabilitation Grant Program is designed to improve and preserve affordable housing through the use of federal Community Development Block Grant (CDBG) funds. The Program is administered by Habitat for Humanity of Orange County on behalf of the City. The Program provides grants of up to $25,000 for eligible home repairs for low-income homeowners at or below 80% of the Area Median Income (AMI) as defined by the U.S. Department of Housing and Urban Development (HUD). Eligible activities include the repair, replacement, and/or installation of major systems including plumbing, heating, electrical, windows, roof, paint, and handicap accessibility. A total of one (1) rehabilitation project was completed during this quarter.

Down Payment Assistance Loan Program Progress
For the Down Payment Assistance Loan Program (DPAP), staff evaluates applicant eligibility and oversees underwriting to ensure compliance with program guidelines and requirements established by HUD. During this quarter, staff conducted two (2) down payment assistance virtual workshops via Zoom with a total of 59 attendees. Five (5) down payment assistance loan applications were approved and five (5) closed escrow.

Staff also conduct monthly workshops together with NeighborWorks of Orange County every second Tuesday of the month. In addition to these workshops, staff participated in one workshop with home lending professionals and one First Time Homebuyer Workshop sponsored by Councilmember Phan. In total, 15 professionals and 15 residents attended the workshops to get information on how to qualify for the City’s down payment assistance program.

Staff also provided a television interview in Spanish for Estrella TV on January 25.

On February 25, staff participated in a First-Time Homebuyer Fair in partnership with the Shalom Center. The event included other homebuying professionals and lenders that provided booths and informational lectures. Staff provided program materials and spoke about the program to all attendees. The event welcomed around 250 people.

Loan Portfolio Management & Monitoring
The Housing Division is responsible for managing the residential loan portfolio, which includes all of the loans entered into by the City and Housing Authority acting as the Housing Successor Agency. As of the end of the second quarter, the principal balance was $144,082,637.77. This is comprised of 341 loans of which 319 are deferred or residual receipt payment loans. As shown in Table 2, the loan portfolio generated City Council 7 – 2 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 3 ends

$132,267.74 in payments of principal and interest during the third quarter. The amount of residual receipts payments changes every quarter.

Table 2: Portfolio Revenue
Funding Source
HOME CDBG Redevelopment NSP CalHOME Inclusionary
Loan Payoffs $71,285.04 $0 $0 $0 $0 $0
Residual Receipts
Payments $36,902.44 $0 $0 $0 $0 $0
Amortized Loan
Payments $0 $3,668.83 $20,311.43 $0 $100.00 $0
Total for Q2 $108,187.48 $3,668.83 $20,311.43 $0 $100.00 $0 Monitoring
As part of the requirements for these loans, staff must monitor the owner-occupancy of single-family homes that have received loans, and the building code compliance of units in rental projects with long-term affordability covenants. During this quarter, 42 owneroccupancy recertification letters were mailed and 38 were returned and processed. This number includes letters sent from previous months. Staff also conducted a total of 224 inspections during this quarter.

Density Bonus Agreements
The California Density Bonus law allows developers proposing five or more residential units to seek increases in base density for providing on-site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek up to three incentives/concessions and an unlimited number of waivers, which are variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. Recent revisions allow affordable housing developers to request incentives/concessions and/or waivers for 100-percent affordable developments, even if they do not require a numerical density bonus. Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to “justify” the density bonus and requested incentives/waivers and places the burden on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted.

As of the date of this report, the City of Santa Ana has entered into the following Density Bonus Agreements:

Date of
Agreement Housing Development Address Affordable Units
October 2018 Metro East Senior Park 2222 E. First St.
415 rental units restricted for
very low income and low
income or senior tenants
August 2018 First Point I & II
Apartments
2110, 2114 and 2020
E. First St.
547 rental units restricted for
very low income and low
income tenants
City Council 7 – 3 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 4 ends

February 2019 Legacy Square 609 North Spurgeon St.
92 rental units restricted for
very low income and low
income tenants
November 2019 The Rafferty 114 & 117 E. Fifth St. 11 rental units restricted for very low income tenants
December 2021 FX Residences
801, 807, 809
and 809 ½
East Santa Ana Blvd
16 permanent supportive
housing units
June 2022 WISEPlace 1411 N. Broadway 47 permanent supportive housing units
August 2022 Brandywine Acquisition
Group 1814 & 1818 E. First St.
4 townhomes restricted for
sale to moderate-income
buyers
Development Impact Fee Deferral Agreements
Development impact fees are a one-time charge to new developments imposed under the Mitigation Fee Act. These fees are charged to new developments to mitigate impacts resulting from the development activity and cannot be used to fund existing deficiencies. This means that for improvements that benefit existing as well as new development, impact fees can only pay for the portion of the improvement that benefits the new uses. Impact fees must be adopted based on findings of a reasonable relationship between the development paying the fee, the size of the fee, and the use of fee revenues. Development impact fees do not require voter approval and are commonly used by cities to address the impact of new development on schools, parks, transportation, etc.

Prior to issuance of any building permits, the City currently requires the payment of various development impact fees. However, affordable housing developers may submit a request to defer specific development impact fees for their property pursuant to California Government Code section 66007. The City and owner then execute a Development Impact Fee Deferral Agreement to defer certain development impact fees applicable to the property and place a lien on the property to secure payment of these fees, which are due before the issuance of the certificate of occupancy or the final building check. As of the date of this report, the City has entered into the following outstanding Development Impact Fee Deferral Agreements that are pending payment:

Date of
Agreement Developer Housing Development Address
Estimated Total Fees
Due
October 2019
Santa Ana Pacific
Associates & Santa Ana
Pacific Associates II
2110, 2114 and 2020
E. First St. $4,121,986
December 2021 Shelter Providers of
Orange County
802, 809, 809 ½ East
Santa Ana Blvd. $510,000
July 2022 Washington Santa Ana
Housing Partners
1126 &1146 E.

Washington Ave. $652,717
Rent Stabilization Program
Effective November 18, 2022, City Council adopted an amended Rent Stabilization and Just Cause Eviction Ordinance that included a number of changes. The amended Rent Stabilization and Just Cause Eviction Ordinance expands the administration and City Council 7 – 4 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 5 ends

enforcement of renter protections for Santa Ana residents by establishing a rental housing board and a rental registry program. The amended Ordinance also includes additional petitions for tenants and landlords, voluntary mediation services, and other enhancements.

The City has prepared user-friendly information on the Ordinance for both tenants and landlords on the City’s webpage, including a detailed summary of changes to the Ordinance and answers to Frequently Asked Questions in English, Spanish, and Vietnamese. Over the next several months, staff will be conducting outreach and education for tenants and landlords on the amended Ordinance. Tenants and landlords are encouraged to sign up to receive the latest updates.

Program Updates:

The City of Santa Ana continues to work with RSG, Inc. on the long-term implementation of the Rent Stabilization and Just Cause Eviction Ordinance. The Rent Stabilization Program has met many critical milestones over the course of Q3.

On January 3, 2023, the City entered into an agreement with Revenue and Cost Specialists (RCS) to conduct a comprehensive fee study to determine appropriate program fees to recover all program costs associated with services provided under the City’s Rent Stabilization and Just Cause Eviction Ordinance. In Q3, staff worked with RCS to finalize the fee study and the rental registry fee that will be recommended to the City Council as a part of the FY 2023-24 Miscellaneous Fee Schedule.

On February 7, 2023, City Council authorized the City Manager to enter into an agreement with 3Di, Inc. to implement, operate, and maintain a rental registry portal that supports the City’s Rent Stabilization and Just Cause Eviction Ordinance. In Q3, staff worked with the consultant on a weekly basis to begin configuring the portal where property owners will register rental units, update rental unit information, update tenancy information, submit notices, and pay the City’s rental registry fee. Staff also began working with the Finance and Management Services Agency to ensure the City will be able to collect, allocate, process, and utilize rental registry fees for the administration of the Ordinance.

In addition to the progress made towards the long-term implementation of the Rent Stabilization Program, staff has continued to serve the community in the following ways throughout Q3:
• Created three new infographics: Eviction Process Infographic, Just Cause Eviction Infographic, and Rent Stabilization Infographic. • Reviewed and made continuous improvements to the layout, content, and forms on the Renter Protections webpage for easier access and understanding. • Fielded calls and emails from the public and provided information, referrals, and education to renters and property owners on the City’s Rent Stabilization and Just Cause Eviction Ordinance.
• Collected notices from landlords to monitor for compliance of the Ordinance.

City Council 7 – 5 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 6 ends

• Hosted our highest attended community workshop focused on Tenant Rights and the Eviction Process, with 309 registrants.

Residents Served:

During this quarter, staff and RSG fielded calls from the public and provided information and education to renters and property owners on the City’s Rent Stabilization and Just Cause Eviction Ordinance. A breakdown of the number of inquiries is as follows:

The City requires that when changing the terms of a tenancy, an owner must submit proof of service to the City as evidence that the owner has complied with noticing requirements. A breakdown of the number of notices received is as follows:

Staff and RSG also conducted one (1) virtual workshop in partnership with the Public Law Center via Zoom in English, Spanish, and Vietnamese:

The City regularly disburses important updates and information to Santa Ana residents.

During this quarter, staff informed the public of programmatic updates via social media and email distribution lists, reaching a total of 47,102 Santa Ana residents.

Available Funds and Land Assets for Affordable Housing Development Projects The City of Santa Ana and the Housing Authority acting as the Housing Successor Agency manages multiple sources of local, state, and federal funds to develop affordable housing. Exhibit 1 provides a summary of the funds available as of March 31, 2023.

Affordable Housing Opportunity and Creation Ordinance
On-Site Development:

Since 2011, a total of 33 units have been developed on-site as a result of the Affordable Housing Opportunity and Creation Ordinance, including 23 ownership units for-sale and 10 rental units:

Month # of Inquiries
January 2023 60
February 2023 80
March 2023 90
Total 230
Month # of Notices
January 2023 30
February 2023 134
March 2023 61
Total 225
Month # of Registrants
January 31, 2023 309
Total 309
City Council 7 – 6 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 7 ends

Units Built On-Site
Ownership Rental Total
23 10 33
In-Lieu Fees Generated:

All in-lieu fees, penalties, and other monies collected pursuant to the Ordinance, including interest, are deposited into the Inclusionary Housing Fund. Since inception, the Inclusionary Housing Fund has generated $28,443,446 to be used for the development of housing affordable to low- and moderate-income households, with a reasonable amount spent on administrative or related expenses associated with the administration of the Ordinance. In-lieu fees generated have been used to develop new affordable housing opportunities, provide emergency shelter, and create homeownership opportunities. Below is a summary of how in-lieu fees have been used by the City:

Project Inclusionary Housing
Funds SPENT # of Units Address
Santa Ana Arts Collective $4,775,000 57 1666 N. Main Street La Placita Cinco $1,300,000 50 2239 West 5th Street
The Link Interim Emergency
Shelter $4,140,295 N/A 2320 S. Redhill Avenue
Westview House $1,514,113 84 2530 and 2534
Westminster Avenue
Habitat for Humanity “Lacy &
Vance” $565,271 2
826 N. Lacy Street &
830 N. Lacy Street
WISEPlace Steps to
Independence Public Service
Program
$90,000 N/A N/A
TOTAL $12,384,679 193
Project Inclusionary Housing
Funds COMMITTED # of Units Address
Habitat for Humanity
“Washington Street” $2,200,000 6
1921 W. Washington
Ave.

Down Payment
Assistance $1,250,000 N/A N/A
TOTAL $3,450,000 6

Inclusionary Housing In-lieu Fees Received per Fiscal Year FYs
2009-2017
FY
17/18
FY
18/19
FY
19/20
FY
20/21
FY
21/22
FY
22/23
$7,851,002 $2,712,304 $7,236,945 $0 $3,709,875 $6,933,320 $0 City Council 7 – 7 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 8 ends

Affordable Housing Development Projects
There are six (6) affordable housing projects under construction, and two (2) affordable housing projects in pre-development. Below is a brief summary and status-update for each project. Exhibit 2 provides a development timeline for each project. The most recent RFP for Affordable Housing Development was issued on December 8, 2021 and closed on February 28, 2022. WISEPlace Permanent Supportive Housing and Habitat for Humanity of Orange County were awarded pre-commitment letters.

Projects under Construction
Legacy Square (609 N Spurgeon Street)
Developer National Community Renaissance with Mercy House as the service provider Description
New construction of a 100% affordable multifamily apartment complex consisting of 92 units of rental housing and one (1) manager’s unit. All units will be affordable to households earning less than 60% AMI of which 33 units will be set-aside for permanent supportive housing.

Authority
Funds Eight (8) Project-Based Vouchers (PBVs)
Update
• Fire: Final inspections for fire alarm and fire sprinkler are signed off. Pending fire pump sign off when generator is approved • Elevator inspection is scheduled for April.
• Building department has pre walked final inspection
• Planning walk is forthcoming
• Temporary generator- OCFA approved the plans. They will go back to building and safety for final stamp. The temporary generator has been hooked up and it is ready for final inspection.
• Offsite-final paving is scheduled for April and this is the final step of site work.
• AQMD permit for perm backup generator is roughly 3-4 weeks out.

North Harbor Village (1108 N Harbor Boulevard)
Developer Jamboree Housing Corporation
Description Acquisition and rehabilitation of a former motel yielding 89 units of permanent supportive housing.

City / Authority
Funds
CDBG ($1,687,047); Eight-nine (89) PBVs consisting of 34 HUD-VASH PBVs and 55 non HUD-VASH PBVs.

Update
Construction is currently underway. Recent activities include plan resubmittals to address some of the site conditions. They are awaiting the final coordinated set to address changes in MEP/Architectural. Concurrently working on completing the paving for the main parking lot. Once the resubmitted plans are approved and the parking lot is completed, construction will move forward at a faster pace.

Westview House (2530 Westminster Avenue)
Developer Community Development Partners with Mercy House as the service provider City Council 7 – 8 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 9 ends

Description
New construction of an affordable multifamily apartment development consisting of 85 units of both large family and PSH units with one (1) manager’s unit. Twenty-six (26) of the units will be funded by Mainstream Program PBVs and Mental Health Services Act (MHSA) funds through the No Place Like Home (NPLH) program.

City / Authority
Funds
Inclusionary Housing ($1,514,113), HOME Investment Partnerships Program ($2,003,705), Rental Rehabilitation Program ($386,523), and twenty-six (26) Mainstream Program PBVs
Update
Grading activities have been completed and concrete has been poured. A groundbreaking ceremony was held on November 2, 2022. The project is completing rough framing and roofing is set to begin in mid-April.

Completion of the project is anticipated in February 2024.

Crossroads at Washington (1126, 1136 and 1146 E Washington Avenue) Developer The Related Companies of California (TRCC) with A Community of Friends (ACOF) as co-developer and lead service provider
Description
New construction of a 100% affordable multifamily apartment complex consisting of 85 units of rental housing and one (1) manager’s unit. All units will be affordable to households earning less than 30% AMI of which 43 units will be set-aside for permanent supportive housing.

City / Authority
Funds
HOME Investment Partnerships Program ($3,007,489), Neighborhood Stabilization Program ($1,637,420), sixty-five (65) year ground lease agreement for 1126, 1136 and 1146 E. Washington Avenue (Appraised Value as of September 22, 2019: $4,108,136) and Fifteen (15) PBVs Update Onsite wet utitlities completed. Offsite dry utilities exclusive of street lighting are installed. Sheeting is finished and roofing will start in April.

Habitat for Humanity (826 N Lacy & 830 N Lacy Street)
Developer Habitat for Humanity of Orange County
Description New construction of two (2) single-family detached homes for homeownership serving households up to 120% AMI.

City / Authority
Funds
Inclusionary Housing ($565,271) and a 99-year ground lease agreement for 416 Vance Street and 826 N. Lacy Street (Appraised Value as of Oct 25, 2018: $578,000)
Update
The work for the MEPS (mechanical, electrical, plumbing, and structural) inspection was completed. The inspection was conducted and signed off on in late March. The drywall work was also completed and passed inspection.

Siding is currently being installed along with decorative carpentry. Volunteer opportunities continue to be offered Wednesday through Saturday throughout the duration of the build. During the first quarter, there were 402 unique volunteers with a total of 3,452 volunteer hours.

WISEPlace Permanent Supportive Housing (1411 N Broadway) Developer Jamboree Housing Corporation with WISEPlace as the co-developer and lead service provider
Description Adaptive reuse and new construction of the WISEPlace building to provide 48 permanent supportive housing units, and one (1) manager’s unit.

City / Authority
Funds HOME-ARP ($5,256,327); Twenty-five (25) PBVs
City Council 7 – 9 5/2/2023
Housing Division Quarterly Report
May 2, 2023

Page 10 ends

Update
The developer closed on their construction loan financing and began construction in March 2023. City Council approved the HOME-ARP Loan Agreement and three other Subordination Agreements on March 7, 2023.

The expected construction completion date is November 2024.

Projects in Pre-Development
FX Residences (801, 809, 809 ½ E Santa Ana Boulevard)
Developer HomeAid Orange County, Inc. with Mercy House as the service provider Description New construction of an affordable multifamily apartment complex consisting of 16 units of permanent supportive housing, and one (1) manager’s unit.

City / Authority
Funds
Housing Successor Agency ($1,656,947), three (3) PBVs, 99-year ground lease agreement for 801 E. Santa Ana Blvd. (Appraised Value as of Oct 25, 2018: $788,000)
Update
HomeAid and Builder Captain City Ventures expect to pull permits by the end of the 2nd quarter of 2023 and break ground on the project middle of the 2 nd quarter of 2023. Completion of the project is estimated by the 1st quarter of 2024.

Habitat for Humanity (1921 W Washington Avenue)
Developer Habitat for Humanity of Orange County
Description New construction of three (3) duplexes / six (6) homes for homeownership serving households up to 80% AMI.

City / Authority
Funds Inclusionary Housing Funds ($2,200,000)
Update
The entitlement application for the project was submitted in February 2023.

The first community Sunshine Ordinance meeting was held on March 14, 2023, at the El Salvador Community Center in Santa Ana. The meeting was attended by over 45 individuals. Representatives from Habitat for Humanity and the City presented attendees information on the project and provided an opportunity for questions. The interest in the opportunity to apply for the homes outweighed any concerns expressed by the group. Overall, the project was overwhelmingly well received by the community. In March, the property was fenced off. Geological testing was started and will be completed in April 2023.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Available Funds for Affordable Housing Development Projects

2. Project Timelines
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager
City Council 7 – 10 5/2/2023
Available Funds for Affordable Housing Development Projects As of March 31st, 2023
Housing Successor Agency (Housing Authority)
$4,982,390 Cash on Hand
($1,656,947) Frances Xavier Residence Project Pre-Commitment Loan 1 ($250,000) Administrative Costs Allowance 2
($2,755,174) Administrative Costs Allowance for Future Fiscal Years 3 ($307,386) Crossroads at Washington Option Agreement Amendment 4 ($12,883) Crossroads at Washington Environmental Assessment Oversight 5 $0 Available Funds
Inclusionary Housing Funds
$14,036,581 Cash on Hand
($930,000) Down Payment Assistance Program 6
($56,527) Lacy Street Project Grant 7
($151,411) Westview House Loan 8
($37,500) Westview House Project Cost
($11,544) WISEPlace Steps to Independence Program Agreement 9 ($2,200,000) 1921 W. Washington Project Pre-Commitment 13 ($2,518,215) Administrative Costs Allowance (CDA/PBA)
$8,131,384 Available Funds
HOME Program
$6,689,393 Funds to Drawdown
($300,749) Crossroads at Washington Loan 10
($200,371) Westview House Loan 8
$6,188,273 Available Funds to Drawdown
HOME-American Rescue Plan Program (PSH Projects Only)
$1,464,630 Funds to Drawdown
($1,464,630) WISEPlace PSH Loan 12
$0 Available Funds to Drawdown
CDBG Program (Acquisition/Rehabilitation Projects Only) $4,690 Funds to Drawdown
$4,690 Available Funds to Drawdown
Rental Rehabilitation Grant Program
$48,578 Cash on Hand 11
($38,652) Westview House Loan 8
$9,926 Available Funds
$14,334,272 Total Available Funds
1 Approved by Housing Authority on January 15, 2019. Additional $587,000 approved by Housing Authority on December 7, 2021. 2 The Housing Successor Agency relies on available cash to fund the monitoring and compliance functions related to the former Redevelopment Agency's housing loans. 3 Funds to be set aside for compliance and monitoring requirements due to uncertainty of future repayment revenues. 4 Approved by Housing Authority on December 15, 2020. Additional $150,000 maximum approved by Housing Authority on August 17, 2021 (2nd Amendment to Option Agreement). 5 Approved by Housing Authority on July 20, 2021.
6 $400,000 originally approved by City Council on March 6, 2018. Nine loans paid through end of September 2021. Additional $1,200,000 approved by Council on November 2, 2021. 7 Approved by City Council/Housing Authority on March 5, 2019. Additional $333,777 approved by City Council on April 6, 2020. 8 Approved by City Council on May 17, 2022.
9 Approved by City Council on April 7, 2020.
10 Approved by City Council on June 21, 2022.
11 Old program income available after close out of program with HUD. 12 Approved by City Council on March 7, 2023.
13 Approved by City Council on November 15, 2022.

Exhibit 1
City Council 7 – 11 5/2/2023
EXHIBIT 2

Page 1 of 7 ends

Current Affordable Housing Development Project Timelines Projects Under Construction
Legacy Square – 609 North Spurgeon Street
Aug 18 Santa Ana CDA Funding Application
Dec 18 Applied for NPLH and SNHP Funds
Jan 19 Santa Ana funding award
Feb 19 Planning entitlements approved
Feb 19 Applied for Round 4 AHSC Funding
May 19 Award of SNHP funds
Jul 19 Applied for Round 1 MHP
Nov 19 Applied for State 4% tax credits
Jan 20 Construction drawings (8-12 weeks)
Feb 20 Apply for Round 5 AHSC funding
May 20 Apply for 4% tax credits
May 20 Plan check (12-16 weeks)
Jun 20 Award of AHSC funds
July 20 Award of 4% Tax Credits
July 20 Award of Tax-Exempt Bonds
May 20 Plan Check (12-16 weeks)
Jan 21 Building permit issuance
Feb 21 Construction closing/syndication
Feb 21 Begin construction (24 months)
Jul 21 Groundbreaking Ceremony
Mar 22 Press Release announcing 5 Community Workshops for Lease Up information
Apr 22 Framing complete
May 22 Roofing to start
July 22 Elevator Cab delivery
Sept 22 Interior painting, and flooring &HVAC getting installed Oct 22 Production insulation and Building Inspection of the Community Room and Leasing Office
Jan 23 Fire signed off on all floors, solar panels and roofing completed, all units in the finish stages. Landscape on podium complete.

Apr 23 Construction complete
Aug 23 100% fully leased (4 months)
North Harbor Village – 1108 N. Harbor
Mar 19 Start of design development
Mar 19 Applied to FHLBSF for AHP Financing ($890,000)
Mar 19 Award of VASH Vouchers & City Loan by City Council (89 Vouchers and $1,687,047)
Mar 19 Start environmental approval process with City of Santa Ana (CEQA/NEPA) Mar 19 Applied for Home Depot Grant ($500,000)
Jun 19 CEQA / NEPA Approval – City of Santa Ana
Jun 19 AHP Award Date ($890,000)
City Council 7 – 12 5/2/2023
EXHIBIT 2

Page 2 of 7 ends

Aug 20 Applied to HCD for MHP 1st Round Funding ($13,316,412) Dec 19 Notified project did not receive 1st Round MHP funding Feb 20 Applied to HCD for VHHP Funding ($10,000,000)
Mar 20 Applied to HCD for MHP 2nd round funding
Mar 20 Applied to OCHFT Financing ($2,292,920)
May 20 Notified project did not receive 2st Round MHP funding May 20 Received OCHFT funding award ($2,292,920)
Jun 20 Received VHHP funding award ($10,000,000)
Jun 20 Submitted Plans for Ministerial Design Approval
Jun 20 Applied for CDLAC tax-exempt bond allocation ($24,000,000) Jul 20 Applied for TCAC 4% competitive state and federal tax credits ($9,896,911) Sept 20 CDLAC Allocation
Nov 20 Ministerial Design Approval (upon completion of community meeting on 11/4/2020)
Oct 20 TCAC Allocation
Oct 20 Start construction documents for rehab
Nov 20 Submit first plan check
Dec 20 Awarded Home Depot Grant
Jan 21 Receipt of first plan check comments
Jan 21 Submit second plan check
Feb 21 Receipt of second plan check comments
Feb 21 Submit third plan check
Mar 21 Received permit ready
Apr 21 Construction loan closing
Apr 21 Pull Permits and start construction
May 21 Site Demolition
Dec 21 Work on mock up units begins
Jun 22 Structural retrofitting and repairs
July 22 Roofing and Framing
Aug 22 Stock drywall & Inspections
Aug 22 Gutter, Awning and Painting & installation of stairs Oct 22 OCHFT Loan finalized
Apr 23 Interior refurbishments & finishes
Apr 23 Complete Flooring
Feb 23 Start of Lease up
Mar 23 Plan resubmittal/Plan Coordination
Apr 23 Grading/Paving for parking lot and site work
May 23 Roof/Drywall/Stucco
Jun 23 Interiors/Fixtures & Appliances/
Aug 23 Construction Completion
Sep 23 Final cleaning
Oct 23 Lease up
Nov 23 Full occupancy
City Council 7 – 13 5/2/2023
EXHIBIT 2

Page 3 of 7 ends

Westview House – 2530 Westminster Avenue
Oct 19 City of Santa Ana RFP submittal
May 20 OC 2020 Supportive Housing NOFA Submittal
Dec 20 OC 2020 Supportive Housing NOFA award
Jan 21 City of Santa Ana PBV Award
Jan 21 Construction/permanent debt commitments
Jan 21 Receive Entitlements
Jan 21 No Place Like Home application
Mar 21 OCHFT application
May 21 OCHFT Award
Jun 21 No Place Like Home commitment
Sep 21 CDLAC/TCAC 4% application
Dec 21 CDLAC/TCAC 4% award
May 22 Close on construction financing
Jun 22 Construction permits issued
Jun 22 Construction start
Nov 22 Groundbreaking Ceremony
Dec 22 Grading activities completed and concrete poured Feb 24 Construction complete
July 24 All units Leased
Nov 24 Perm Debt Conversion
Crossroads at Washington – 1126,1136 and 1146 E. Washington Avenue Aug 19 Submitted PSH application to County
Oct 19 Submitted for Planning entitlements
Oct 19 Community meeting
Nov 19 Approval of Joint Powers Agreement, Option to Ground Lease, Voucher Resolution and Cooperation Agreement, and Regional Housing Needs Assessment (RHNA) Agreement and Density Bonus
Dec 19 NEPA EA City Approval – City of Santa Ana submits NEPA EA to HUD Feb 20 PSH Funds and Voucher approval from County Board of Supervisors Feb 20 Planning entitlements approved
Mar 20 TCAC 9% Application – 1
st Round 2020
Jul 20 TCAC FCAA/9% Application – 2
nd Round 2020
Oct 20 TCAC FCAA/9% Award – 2
nd Round 2020
Mar 21 Submitted OCHFT PSH NOFA Application
May 21 OCHFT PSH NOFA Award
Dec 21 Submit DTSC Equitable Community Revitalization Grant (ECRG) PreQualifying Application Feb 22 Submit for 1st plan check
Mar 22 DTSC approves draft Removal Action Workplan; draft Removal Implementation Plan under review
Apr 22 DTSC ECRG Full Application
Jul 22 DTSC ECRG Award
Jul 22 City issues permit ready letter
Jul 22 Construction finance closing/Start construction
Nov 22 Building foundation complete
City Council 7 – 14 5/2/2023
EXHIBIT 2

Page 4 of 7 ends

Dec 22 Framing began
Dec 23 Construction complete
Apr 24 Full occupancy
Habitat for Humanity – 826 N. Lacy Street & 830 Lacy Street May 20 DDA signed
June 20 Prepare grading plans
Oct 20 Prepare architectural plans
Oct 20 Submit Neighborhood Review Application
Feb 21 Final Approval from Historic French Park Committee Apr 21 Submit Site Review Application
Dec 21 Submit grading/ Non-Priority WQMP
Jan 22 Submit architectural plans
May 22 Planning Commission Approval
Jul 22 Grading permit issued
Aug 22 Groundbreaking
Aug 22 Building Permits issued
Aug 22 Commence Grading
Sep 22 Begin Foundation Construction
Oct 22 Framing Ceremony/Framing Construction Begins
Jan 23 Roof diaphragm sheathing and exterior sheathing completed Jan 23 Roof sheathing/frame and shear walls Inspection
Jan 23 Buildings dried in
Jan 23 House wrap and waterproofing
Jan 23 Drywall stack complete
Jan 23 Exterior Door installation complete
Jan 23 Homebuyer outreach and application open
Feb 23 Window installation complete
Feb 23 Rough in plumbing
Feb 23 Rough in electrical
Feb 23 Rough in mechanical
Feb 23 Rough in fire sprinkler- OCFA
Mar 23 MEP Inspection
Mar 23 OCFA Inspection
Mar 23 Structural/framing complete
Mar 23 Structural/framing Inspection
Mar 23 Seal exterior penetrations
Mar 23 Wood siding started
Mar 23 Start exterior wood trim carpentry-ongoing
Mar 23 Insulation completion and inspection
Mar 23 Drywall hanging
Mar 23 Preliminary homebuyer application review
May 23 Habitat for Humanity Leaders Build on-site
Jun 23 Homebuyer selection
Aug 23 Anticipated Construction Completion
Aug 23 Certificate of Occupancy/Closing
City Council 7 – 15 5/2/2023
EXHIBIT 2

Page 5 of 7 ends

WISEPlace Permanent Supportive Housing – 1411 N. Broadway May 19 Start of conceptual design development
Sept 19 Applied to City of Santa Ana for Financing
Feb 20 Notified not awarded City of Santa Ana Financing Mar 20 Applied to Orange County Housing Finance Trust (OCHFT) Financing Apr 20 Met with City of Santa Ana Planning Staff on entitlements May 20 Notified not awarded OCHFT Financing
Jun 21 Met with City of Santa Ana staff to review revised conceptual plans Jan 22 Submitted Historic Resource Commission and entitlements application to City of Santa Ana
Feb 22 Applied to City of Santa Ana for HOME-ARP Funding and PBVs Mar 22 City of Santa Ana Historic Resource Commission Approval Mar 22 Applied to OCHFT Financing
Mar 22 Applied to AHP Financing
Apr 22 Awarded City of Santa Ana for HOME-ARP Funding and PBVs May 22 Awarded OCHFT Funding
May 22 City of Santa Ana Planning Commission Approval of entitlements May 22 City of Santa Ana Community Development Commission Approval of Funding and Density Bonus Agreement (DBA)
Jun 22 Notified not awarded AHP Funding
Jun 22 Applied to County of Orange for ARPA Funding
Jun 22 City of Santa Ana City Council Approval of DBA
Jun 22 Awarded County of Orange ARPA Funding
Jun 22 Applied for TCAC 9% competitive federal tax credits Sept 22 TCAC Allocation
Sept 22 Start Construction Documents, Plan Check and Permitting Jan 23 Closing Kick Off
Mar 23 Receive grading permit and building permit ready letter Mar 23 Construction loan closing
Mar 23 Pull Permits and start construction
Apr 23 Site Demolition
Nov 23 Podium Complete
Jun 24 Dry In Complete
Nov 24 Construction Complete
May 25 100% Full occupancy (6 months)

City Council 7 – 16 5/2/2023
EXHIBIT 2

Page 6 of 7 ends

Projects in Pre-Development
FX Residences – 801, 809, 809 ½ E. Santa Ana Boulevard
Jan 19 Council approval for land lease and project funding Jan 19 Submittal of application for NPLH funding
Feb 19 Confirm with City staff that project site can yield additional units under existing zoning
Mar 19 Revise conceptual drawings for additional 5 units (17 total units, up from the original 12 units)
Mar 19 SNHP funding application submitted to County
Apr 19 City staff to review revised conceptual design
Apr 19 Begin development agreement
May19 Board of Supervisors meeting for SNHP funding
Jul 19 Execute Development Agreement
Jul 19 Formal awards letters for NPLH funding to be issued Aug19 Initial planning submittal
Sept19 Sunshine Ordinance Meeting
Mar 21 Planning Commission Meeting (ministerial approval of density bonus) Oct 21 Submit for first plan check
Dec 21 City Council Meeting (ministerial approval of density bonus) Dec 21 City Council approval of additional $587,000 for construction costs Feb 22 Building permit submittal
Mar 22 Received 1
st set of comments back from Plan Check, consultants working on responses.

Jul 22 FX Funding Closing Meetings begin, 2nd Building Plan Submittal Aug 22 Building and Grading comments being addressed
Oct 22 Construction Funding Closing process is underway Dec 22 Dry closed funding for CalHFA/SNHP and City of Santa of Santa Ana April 23 Met with city planner to clarify all comments on 3rd submittal April 23 Submit 4th building review & OCFA building review May 23 Pull Building Permits & PGP Permits
June 23 Start of Construction
Mar 24 Anticipated Completion of construction
May 24 Lease up units ( 3 months)
Habitat for Humanity – 1921 Washington Avenue
Dec 21 Habitat for Humanity OC closed escrow on property Aug 22 Subsidy Approval from Community Development Commission Nov 22 Subsidy Approval from City Council
Dec 22 Submit Demo Permit Application
Jan 23 Demo Permit Issued
Feb 23 Submit Site Plan Review Application
Mar 23 First Sunshine Ordinance Meeting
Mar 23 Demolition permit
Jul 23 Groundbreaking Ceremony
City Council 7 – 17 5/2/2023
EXHIBIT 2

Page 7 of 7 ends

Jul 23 Submit Grading / Non-Priority WQMP
Aug 23 Submit Architectural plans
Sep 23 Planning Commission Approval
Nov 23 Building Permit issued
Nov 23 Begin Foundation Construction
Jan 24 Framing Ceremony
Aug 24 Complete Rough Insoectiuons
Dec 24 Construction Completed
City Council 7 – 18 5/2/2023
Community Development Agency
www.santa-ana.org/community-development
Item # 8
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 2, 2023
TOPIC: Appropriation Adjustment for Emergency Housing Voucher Service Fees

AGENDA TITLE
Approve Appropriation Adjustment Recognizing the Remaining Balance of Emergency Housing Voucher Service Fees

RECOMMENDED ACTION
Approve an appropriation adjustment for Emergency Housing Voucher Service Fees in the amount of $155,750. (requires five affirmative votes)

DISCUSSION
On July 20, 2021, the City Council approved an appropriation adjustment recognizing Emergency Housing Voucher (EHV) service fees in the amount of $311,500. The City Council also authorized the City Manager to execute a future agreement with a designated service provider to utilize EHV service fees to provide housing search assistance for EHVs issued by the Housing Authority (Exhibit 1). Following this approval on January 20, 2022, the City entered into an agreement with Mercy House Living Centers (Mercy House) to administer this $311,500 in EHV service fees (Exhibit 2).

In the Fiscal Year 2022-23, staff carried over only 50 percent (50%) of the $311,500 in EHV service fees. However, during FY 2022-23 Mercy House will expend more than 50 percent (50%) of the $311,500 balance. Therefore, staff is seeking approval from the City Council to appropriate the remaining balance of EHV Service Fees.

FISCAL IMPACT
Approval of the appropriation adjustment will recognize $155,750 in EHV service fees in Federal Grant – ARPA EHV Service Fees account (18018002-52014) and appropriate same to the EHV – Administrative Fees expenditure account below. Any remaining balances not expended at the end of the fiscal year will be presented to the City Council for approval of carryovers to FY 2023-24.

Fiscal
Year
Accounting
Unit-Account #
Fund
Description
Accounting Unit,
Account Description Amount
FY 22-23 18018760-69135 Emergency
Housing Vouchers
EHV – Admin Fees,
Payment to Subagent $155,750
City Council 8 – 1 5/2/2023
Appropriation Adjustment for Emergency Housing Voucher Service Fees May 2, 2023

Page 2 ends

EXHIBIT(S)

1. July 20, 2021 Staff Report

2. January 20, 2022 Agreement with Mercy House
Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager
City Council 8 – 2 5/2/2023

AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA AND

MERCY HOUSE LIVING CENTERS FOR USE OF

EMERGENCY HOUSING VOUCHER (EHV) SERVICES FEES
THIS GRANT AGREEMENT, is hereby made and entered into this January 20, 2022, by and between the Housing Authority of the City of Santa Ana (''AUTHORITY"), a public body, corporate and politic ("Contractor"), and Mercy House Living Centers, a California nonprofit organization ("Subrecipient").

RECITALS:

A. On March 11, 2021, the American Rescue Plan Act of 2021 ("ARPA") was signed into law and appropriated $5 billion for new incremental Emergency Housing Vouchers ("ERVs") across the nation. ARPA included funding for the renewal of these ERVs and fees for the cost of administering the ERVs and other eligible expenses to prevent, prepare, and respond to the coronavirus and facilitate the leasing of the ERVs, such as security deposit assistance and other costs related to the retention and support of participating owners.

B. On June 10, 2021, the AUTHORITY received notice ofan award of$311,500 in ERV Services Fees from HUD to support its efforts in implementing and operating an effective ERV Services Fee program that will best address the needs of ERV eligible individuals and families in its jurisdiction and to assist ERV eligible individuals and families that are homeless successfully lease units with the ERVs.

C. The AUTHORITY is the recipient of Emergency Housing Voucher funds from the United States Department of Housing and Urban Development ("HUD"), pursuant to Section 3202 of the ARP A, for new incremental ERV s, the renewal of those ERV s, and fees for the cost of administering the ERVs and other eligible expenses defined by notice to prevent, prepare, and respond to coronavirus to facilitate the leasing of the emergency vouchers, such as security deposit assistance and other costs related to retention and support of participating owners. A Catalogue of Federal Domestic Assistance ("CFDA") number for these ERV funds will not be issued.

D. The AUTHORITY has approved the provision of ERV Services Fees funds to be used in the operation of the Landlord Engagement program ("program"), which matches voucher holders with available units and provides voucher holders with housing search assistance, as further described by Exhibit A, Scope of Work, attached hereto and by this reference incorporated herein.

E. The SUBRECIPIENT represents that it has the requisite qualifications, expertise, and experience in the provision of housing search assistance programs for the homeless and is willing to use said federal funds to operate said program.

F. The SUBRECIPIENT agrees to assist individuals and families that are homeless to successfully lease units with the ERVs by providing housing search assistance, security deposit/utility deposit/rental application/holding fees, owner recruitment and outreach, owner incentive and/or retention payments, moving expenses, tenant-readiness services, essential household items, and renter's insurance ifrequired by the lease.

Page 1 ends

EXHIBIT 2
City Council 8 – 3 5/2/2023
H. SUBRECIPIENT has agreed to be reimbursed for the above services in an amount not to exceed $311,500 in grant funding.

I. This AGREEMENT is contingent upon the award of EHV Services Fee funds from the United States Department of Housing and Urban Development.

J. The AUTHORITY and the SUBRECIPIENT have duly executed this AGREEMENT for the expenditure and utilization of said funds.

NOW THEREFORE, it is agreed by and between the parties that the foregoing Recitals are a substantive part of this AGREEMENT and the following terms and conditions are approved and together with all exhibits and attachments hereto, shall constitute the entire AGREEMENT between the AUTHORITY and the SUBRECIPIENT:

I. SCOPE OF PROGRAM
A. General Administration
The SUBRECIPIENT agrees to implement this activity as set forth in detail in Exhibit A, Scope of Work, which shall provide a description of each activity, including the services to be performed, the person or entity providing the service, the estimated number of recipients of the service, and the manner and means of'the services.

B. Levels of Accomplishment - Goals and Perfonnance Measures The SUBRECIPIENT shall be responsible to accomplish the levels of perfonn.ance as set forth in Exhibit A and report such measures quarterly to the AUTHORITY. If the SUBRECIPIENT estimates such goals will not be met, the SUBRECIPIENT is to contact the AUTHORITY, at which time the AUTHORITY will detennine if any adjustments to the grant award is appropriate.

C. Staffing
The SUBRECIPIENT shall ensure adequate and appropriate staffing is allocated to each EHV Services Fee activity. Nothing contained in this AGREEMENT is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties.

II. TERM OF AGREEMENT
This AGREEMENT shall take effect on December 2, 2021, and shall terminate on December 31, 2022, unless otherwise cancelled or modified according to the terms of this AGREEMENT.

III. DISBURSEMENT AND FUNDS
The AUTHORITY was allocated $311,500 in EHV Services Fee funds from HUD in response to the COVID-19 pandemic. AUTHORITY agrees to pay to SUBRECIPIENT when, if and to the extent federal funds are-received under provisions of the Act a sum not to exceed $311,500 for SUB RECIPIENT'S perfonnance in accordance with the Budget attached hereto as Exhibit B during the period of this Agreement. Said sum shall be paid after AUTHORITY receives invoices submitted by SUBRECIPIENT as provided hereinabove.

Page2
EXHIBIT 2
City Council 8 – 4 5/2/2023
A. Amount and Expenditure End Date
The AUTHORITY agrees to reimburse the SUBRECIPIENT a maximum amount not to exceed $311,500 from ERV Services Fee funds, as outlined in Exhibit B, Final Budget, and such funds shall be expended by the SUBRECIPIENT on or before December 3 !, 2022. SUBRECIPIENT has the ability to adjust line item amounts in the Budget with the written approval of the AUTHORITY's Executive Director of the Community Development Agency, so long as the total Budget amount does not increase.

B. Invoicing Procedures
The SUBRECIPIENT shall submit quarterly invoices (on or before the 151h day of April, July, October, and January) in a form prescribed by the AUTHORITY, detailing such expenses. ·Such schedule may be modified with the approval of the AUTHORITY.

C. Payment
Payment is subject to the receipt and approval of such invoices and quarterly activity reports, as hereinafter more fully set forth below under Reporting, with the final payment subject to the satisfaction of the condition precedent of submittal of complete invoicing and reporting information due on or before July 15 of the applicable funding year. The AUTHORITY shall pay such invoices within thirty (30) days after receipt thereof, provided the AUTHORITY is satisfied that such expenses have been incurred within the scope of this AGREEMENT and that the SUBRECIPIENT is in compliance with the terms and conditions of this AGREEMENT. The thirty (30) day period will discontinue if the reimbursement request is determined to be incomplete and will restart the thirty-day timeline once the remaining required elements have been submitted.

Failure to provide any of the required documentation and reporting will cause the AUTHORITY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the AUTHORITY.

D. Use of Funds
The SUBRECIPIENT agrees to use said funds pursuant to this AGREEMENT to pay for necessary and reasonable costs allowable under federal law and regulations to operate said program only. Said amounts shall include and will be limited to housing search assistance, security deposit/utility deposit/rental application/holding fees, owner recruitment and outreach, owner incentive and/or retention payments, moving expenses, tenant-readiness services, essential household items, and renter's insurance ifrequired by the lease as set forth in the ERV operating requirements in PIH Notice 2021-15. Allowable program costs are detailed in the Budget, as set forth in Exhibit B, attached· hereto and by this reference incorporated herein. The SUBRECIPIENT'S failure to perform as required may, in addition to other remedies set forth in this AGREEMENT, result in readjustment of the amount of funds the AUTHORITY is otherwise obligated to pay to the SUBRECIPIENT pursuant to the terms hereof.

Page 3 ends

EXHIBIT 2
City Council 8 – 5 5/2/2023
E. Condition of Funding
(!) The AUTHORITY advises the SUBRECIPIENT that a significant change in entitlement funding may result in a change in the current process utilized by the AUTHORITY to determine funding allocations. The SUBRECIPIENT acknowledges that the obligation of the AUTHORITY is contingent upon the availability of Federal, State or Local govermnent funds, which are appropriated or allocated for the payment of such an obligation. If funding levels are significantly affected by Federal budgeting or if funds are not allocated and available for the continuance of the function performed by the SUBRECIPIENT, this AGREEMENT may be terminated by the AUTHORITY at the end of the period for which funds are available. At the earliest opportunity, the AUTHORITY shall notify the SUBRECIPIENT of any service which may be affected by a shortage of funds. No penalty shall accrue to the AUTHORITY in the event this provision is exercised and the AUTHORITY shall not be liable for any damages as a result of termination under this provision of this AGREEMENT. Nothing herein shall be construed as obligating the AUTHORITY to expend funds in excess of appropriations authorized by law. (2) The SUB RECIPIENT shall allow representatives of the AUTHORITY or HUD to inspect facilities which are used in connection with the AGREEMENT or which implement programs funded under this AGREEMENT.

F. Reserved.

G. Program Income
(1) Definition. Program income means, as provided by 2 CFR 200.80, gross income received by the SUBRECIPIENT directly generated by a grant supported activity, or earned only as a result of the grant agreement during the grant period. For purposes of EHV Services Fees, program income will also include any amount of a security or utility deposit returned to the SUBRECIPIENT.
(2) Use. The SUBRECIPIENT shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the terms and conditions of this AGREEMENT.

H. Separation of Accounts
All funds received by the SUBRECIPIENT from the AUTHORITY pursuant to this AGREEMENT shall be maintained separate and apart from any other funds of the SUBRECIPIENT, or of any principal or member of the SUBRECIPIENT, in an account (the "Account") at a federally insured banking or savings and loan institution with record keeping of such Accounts maintained pursuant to applicable legal requirements. The SUBRECIPIENT shall keep all records of the Account in a manner that is consistent with generally accepted accounting principles. No monies shall be withdrawn from the Account except for expenditures relating to essential services, homeless prevention, and/or operations costs, as authorized hereW1der. All disbursements from the Account shall be for obligations incurred in the performance of this AGREEMENT and shall be snpported by contracts, invoices, vouchers, and other data, as appropriate, evidencing the necessity of such expenditure. The AUTHORITY may withhold payment allocation requests if the SUBRECIPIENT fails to comply with the above requirements until such compliance is demonstrated.

Page4
EXHIBIT 2
City Council 8 – 6 5/2/2023
IV.

I. Expenditure of Funds
Much like how HUD requires the AUTHORITY, to expend all of the grant funds for eligible activity, it is a requirement for the SUBRECIPIENT to expend all of the grant funds for eligible activity costs within the designated period. For the purposes of this paragraph, expenditure means either an actual cash disbursement for a direct charge for a good/service or an indirect cost, or the accrual of a direct charge for a good/service or an indirect cost.. }. Prohibited Use
(I) Generally. The SUBRECIPIENT hereby certifies and agrees that it will not use funds provided through this AGREEMENT to pay for. meals for persons other than those identified. as homeless. Said funds shall not be used for entertainment purposes or for gifts. The SUBRECIPIENT certifies that it �II not use said funds for illegal or dishonest conduct, rather, fund use will remain in compliance with all applicable federal, state, and local laws, including applicable laws not outlined in this AGREEMENT.
(2) Lobbying. The SUBRECIPIENT certifies and agrees that it will comply with federal law (3 I U.S.C. 1352) and regulations found at 24 CFR Part 87, which provide that no appropriated funds may be expended by the recipient of a federal contract, grant, loan, or cooperative agreement to pay any person for influencing or attempting to influence an officer or employee of any agency, Member of Congress, or an officer or employee of a Member of Congress in connection with awarding of any federal contract, the making of any federal grant or loan, entering into any cooperative agreement and the extension, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. The SUBRECIPIENT shall sign a certification to that effect in a form as set forth in Exhibit C, attached hereto and by this reference incorporated herein. The SUBRECIPIENT shall submit said signed certification to the AUTHORITY prior to performing any of its obligations under this AGREEMENT and prior to any obligation arising on the part of the AUTHORITY to pay any sums to the SUBRECIPIENT under the terms and conditions of this AGREEMENT. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit a "Disclosure Form to Report Lobbying," in accordance with its instructions (see Exhibit D).

NOTICES
The SUBRECIPIENT and the AUTHORITY agree that all notices required by this AGREEMENT shall be made in writing and delivered via mail (postage prepaid); commercial courier; personal delivery; or sent by facsimile or other electronic means (provided that receipt is confirmed). Any notice delivered or sent as aforesaid shall be effective on the date of delivery or sending. All notices and other written communications under this AGREEMENT shall be addressed to the individuals in the capacities indicated below, unless modified by subsequent written notice.

Communication and details concerning the AGREEMENT shall be delivered to the office of,. and directed to, the following representatives:

Page 5 ends

EXHIBIT 2
City Council 8 – 7 5/2/2023
AUTHORITY:

Hongloan Hull
Operations Supervisor
City of Santa Ana
Community Development Agency
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, CA 92702-1988
(714) 667-2247
[email protected]
V. GENERAL CONDITIONS
A. Coordination with Continuum of Care
SUBRECrPIENT:

Mercy House Living Centers
PO Box 1905
Santa Ana, CA 926702
(714) 836-7188
Attn: Larry Haynes Chief Executive Officer
(714) 836-7188 x!Ol
I a [email protected]
The SUBRECJPIENT must work with the Continuum of Care ("CoC"') to ensure the screening, assessment, and referral of program participants are consistent with the AUTHORITY's written standards for providing EHV Services Fees assistance.

B. Terminating Assistance
If a program participant violates program requirements, the SUBRECIPIENT may terminate the assistance in accordance with a formal process established by the SUBRECIPIENT that recognizes the rights of individuals affected.

C. Independent Contractor
Nothing contained in this AGREEMENT is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The SUBRECIPIENT and its subcontractors shall at all times remain independent contractors with respect to the services to be perfonned under this AGREEMENT. The AUTHORITY shall be exempt from payment of any Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the SUBRECIPIENT is an independent contractor.

D. Subcontracts
(I) Content Requirements. The SUBRECIPIENT will include all relevant provisions of this AGREEMENT in all subcontracts entered into as part of the activities undertaken in furtherance of this AGREEMENT and will take appropriate action pursuant to any subcontract upon a finding that the subcontractor is in violation of regulations issued by any federal agency. The SUBRECIPIENT will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 (Economic Opportunities for Low- and Very Low-Income Persons) and will not allow any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. (2) Submission to the AUTHORITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the AUTHORITY.

Page 6 ends

EXHIBIT 2
City Council 8 – 8 5/2/2023
E. Licensing
The SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation, and inspections from all agencies governing its operations. The SUBRECIPIENT shall ensure that its staff and subcontractors shall also obtain and maintain all required licenses,. registrations, accreditation and inspections from all ageucies governing the SUBRECIPIENT's operations hereunder. Such licensing requirements include obtaining a AUTHORITY business license, as applicable.

F. Responsibilities Toward Employees
The SUBRECIPIENT accepts full responsibility for payment of any and all unemployment compensation, insurance premiums, workers' compensation premiums, income tax withholdings, social security withholdings, and any and all other taxes or payroll withholdings required for all employees engaged in the performance of the work and activities authorized by the AGREEMENT. The SUBRECIPIENT accepts full responsibility for providing workers with proper safety equipment and taking any and all necessary precautions to guarantee the safety of workers or persons otherwise affected.

G. Insurance and Bonding
(!)Generally. The SUBRECIPIENT shall maintain liability and property insurance to cover actionable legal claims for liability or loss which are the result of injury to or death of any person, or damage to property (including property of Grantee) caused by the negligent acts or omissions, or negligent conduct of the SUBRECIPIENT, its employees, agents or subcontractors, to the extent permitted by law, in connection with the activities pursuant to this AGREEMENT.

The SUBRECIPIENT shall comply with the bonding and insurance requirements of 2 CFR 200.427, and 2 CFR 200.447.

The SUBRECIPIENT shall undertake self-insurance, or shall obtain, at its sole cost, a policy or policies of commercial general liability insurance, or equivalent form.

Such insurance shall: (I) name the City of Santa Ana, its officers, agents, employees and volunteers as additional insureds; (2) be primary with respect to insurance or self-insurance programs maintained by the AUTHORITY; (3) contain standard separation of insureds provisions; and (4) give Jo the AUTHORITY prompt and timely notice of claim made or suit instituted arising· out of the SUBRECIPIENT's operations hereunder. (2) Limits. The SUBRECIPIENT shall maintain, at all times, the following minimum levels of Insurance, and shall, without in any way altering its liability, obtain, pay for, and maintain insurance for the coverages and amounts of coverage not less than those set forth below:
a. Workers' Compensation. Amount must comply with State and Federal Laws

Page 7 ends

EXHIBIT 2
City Council 8 – 9 5/2/2023
b. Comprehensive General Liability. $1,000,000 combined single limit of liability for bodily injuries, death, and property damage resulting from any one occurrence, including the following coverages:
i. Premises and Operations; and
ii. Broad Form Commercial General Liability Endorsement to include blanket contractual liability (specifically covering, but not limited to, the contractual obligations assumed by the SUBRECIPIENT); Personal Injury (with employment and contractual exclusions deleted); and Broad Form Property Damage coverage.
c. The SUBRECIPIENT's self-insured retention or deductible per line of coverage shall not exceed $25,000 without the permission of the AUTHORITY. (3) Proof of Insurance. The SUBRECIPIENT shall furnish the AUTHORITY's Clerk of the Council with an insurance certificate from insurance carrier certifying that it carries such insurance and that the policy shall not be canceled nor the coverage reduced except upon thirty (30) days prior notice to the AUTHORITY.

The SUBRECIPIENT shall, prior to exercising any right under this AGREEMENT:
a. furnish properly executed certificates of insurance and additional insured endorsement to the AUTHORITY which shall clearly evidence all coverage required above;
b. provide that such insurance shall not be materially changed or terminated except on thirty (30) days prior written notice to the AUTHORITY; c. maintain such insurance for the period covered by this AGREEMENT; and d. replace such certificates for policies expiring prior to the expiration of this AGREEMENT.
(4) Company Rating. All insurance coverage shall be written with a company having an A.M.

Best Rating of"A" or better and financial size of VIII or larger. (5) Failure to Comply. In the event of any failure by the SUBRECIPIENT to comply with these provisions, the AUTHORITY may, after notice to the SUBRECIPIENT, suspend the program for caus.e until there is full compliance.

H. Zoning.

The SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall be specifically zoned and permitted for such use(s) and activity(ies). Should the SUBRECIPIENT fail to have the required land entitlement and/or permits, thus violating any local, state; or federal rules and regulations relating thereto, the SUBRECIPIENT .shall immediately make good-faith efforts to gain compliance with local, state, or federal rules and regulations following written notification of said violation(s) from the AUTHORITY or other authorized citing agency. The SUBRECIPIENT shall notify the AUTHORITY immediately of any pending violations. Failure to notify the AUTHORITY of pending violations, or to remedy such known violation(s), shall result in termination of grant Page8
EXHIBIT 2
City Council 8 – 10 5/2/2023
funding hereunder. The SUBRECIPIENT must make all corrections required to bring the facility/property into compliance with the law within sixty (60) days of notification of the violation(s); failure to gain compliance within such time shall result in termination of grant funding hereunder.

I. Provisions Required by Law Deemed Inserted.

Each and every provision of law and clause required by law to be inserted in this contract shall be deemed to be inserted herein and the AGREEMENT shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted or correctly inserted, then upon the application of either party the contract shall forthwith be physically amended to make such insertion or correction.

VI. ASSURANCES AND CERTIFICATIONS
A. Non-Profit Statos
The SUBRECIPIENT certifies that:
(]) The SUBRECIPIENT is a duly organized and existing non-profit corporation in good standing and authorized to do business under the laws of the State of California and in possession of required non-profit statos under the United States Internal Revenue Code [for example, 26 USC§ 50l{c)(3)]. The SUBRECIPIENT has full right, power, and lawful authority to accept the funding hereunder and to undertake all obligations as provided herein and the execution, performance, and delivery of this AGREEMENT by the SUBRECIPIENT has been fully authorized by all requisite actions on the part of the SUB RECIPIENT. (2) If the SUBRECIPIENT' s non-profit statos changes at anytime during this AGREEMENT, it will advise the AUTHORITY within 15 days. (3) If the SUBRECIPIENT is a private non-profit, it hereby agrees that the members of its Board of Directors will receive no compensation, directly or indirectly, other than·reimbursement for expenses, from any funds generated from or because of the EHV Services Fee program, for their services.
(4) As a non-profit, the SUBRECIPIENT acknowledges that administration of its operation and services are subject to the requirements as established in 2 CFR 200.

B. Adherence to Federal, State, and Local Laws and Regulations {I) General. The SUBRECIPIENT agrees to comply with all requirements of the EHV Services Fee program and applicable cross-cutting Federal, State, and Local requirements. (2) Economic Opportunities for Low- and Very Low-income Persons. The SUBRECIPIENT shall ensure that employment and other economic opportunities generated by the Program shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing. Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1701u, and regulations at 24 CFR part 135 apply, except·

Page 9 ends

EXHIBIT 2
City Council 8 – 11 5/2/2023
that homeless individuals have priority over other Section 3 residents in accordance with § 576.405(c).
(3) Civil Rights. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of the Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of I 973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, and 41 CFR Chapter 60.
(4) Nondiscrimination and Equal Employment Opportunity. During the performance under this AGREEMENT, the SUBRECIPIENT shall not discriminate against any employee or applicant for employment based on race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, sexual orientation, or any other basis prohibited by applicable law.

The SUBRECIPIENT shall take affirmative action to ensure that all applicants and employees are treated without regard to race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familial status, and sexual orientation.

The SUBRECIPIENT shall comply with all provisions of Executive Order I 1246, Equal Employment Opportunity, as amended by Executive Orders 11375 and 12086. (5) Nondiscrimination and Equal Opportunity in Participation. The requirements in 24 CFR part 5, subpart A are applicable, including the nondiscrimination and equal opportunity requirements at 24 CFR 5.105(a). The SUBRECIPIENT shall not discriminate against any participant on the ground of race, color, creed, religion, sex, age, handicap, disability, ancestry, national origin, marital status, familiar status, sexual orientation, or any other basis prohibited by applicable law. The SUBRECIPIENT shall, through affirmative outreach, make known that use of the facilities, assistance, and services are available to all on a nondiscriminatory basis. The SUBRECIPIENT must take appropriate steps to ensure effective communication with persons with disabilities.
(6) Americans with Disabilities Act. The SUBRECIPIENT agrees to comply with any federal regulations issued pursuant to compliance with the Americans with Disabilities Act which prohibits discrimination and ensures equal opportunity for persons with disabilities in employment, State and Local govermnent services, and public accommodations. (7) Fair Housing. Under section 808(e)(5) of the Fair Housing Act, HUD has a statutory duty to affirmatively further fair housing. HUD requires the same of its funded sub-recipients. The SUBRECIPIENT has a duty to affirmatively further fair housing opportunities for classes protected under the Fair Housing Act.

C. Falsification of Information
The SUBRECIPIENT represents and warrants that it has made no false statements to the AUTHORITY in the process of obtaining this award of the EHV Services Fee Funds.

Page 10 ends

EXHIBIT 2
City Council 8 – 12 5/2/2023
D. Drug Free Workplace
The SUBRECIPIENT represents and warrants that it has established the following drug-free workplace policy:
(1) The unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace for any employee involved in a federally funded program.
(2) As an employee working in conjunction with a federally funded program, the eni.ployees · of the SUB RECIPIENT will be required to:
(3)
(4)
(S)
a. Abide by the terms above in statement (1), and
b. Notify the appropriate SUBRECIPIENT authorities and AUTHORITY officials of any criminal drug statute conviction for a violation occurring in the workplace.

Such notification shall be made no later than five (5) days after conviction.

The AUTHORITY and the United States Department of Housing and Urban Development will be notified within ten days after receiving notice of any such violation.

Within thirty (30) days of receiving such notice, appropriate personnel action will be taken against such employee, up to and including termination.

Each such employee shall be required to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State or Local health, law enforcement, or other appropriate agency.

E. Religious Organization
The SUBRECIPIENT may not engage in inherently religious activities, such as worship, religious instruction, or proselytization as part of said program or services. If the SUBRECIPIENT conducts such activities, the activities must be offered separately, in time or location, from said programs or services, and participation must be voluntary for the program participants.

The SUBRECIPIENT shall not, in providing program assistance, discriminate against a program participant or prospective_ program participant on the basis of religion or religious belief.

If the SUBRECIPIENT is a religious organization, it retains its independence from Federal, State, and Local govermuents, and may continue to carry out its mission, including the definition, practice, and expression of its religious beliefs, provided that the religious organization does not use direct EHV Services Fee funds to support any inherently religious activities.

The SUBRECIPIENT agrees that rehabilitation of structures by the religious organization in connection with said program must be in sound accord with the provisions under 24 CFR § 576.406.

Page 11 ends

EXHIBIT 2
City Council 8 – 13 5/2/2023
F. Additional Terms between the AUTHORITY and HUD
The SUBRECIPIENT agrees further that it shall be bound by the standard terms and conditions used in the Grant Agreement between HUD and the AUTHORITY and such other rules, regulations, or requirements as HUD may reasonably impose in addition to the aforementioned assurances at or subsequent to the execution of this AGREEMENT by the parties hereto.

G. OSHA
Where employees are engaged in activities not covered under. the Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be trained, or receive services in buildings or surroundings or under working conditions which are unsanitary, hazardous, or dangerous to the participants'· health or safety.

H. Hatch Act.

The SUBRECIPIENT agrees that no ·funds provided, nor personnel employed under this AGREEMENT, shall be in any way or to any extent engaged in the conduct of political activities in violation of the Hatch Act, 5 U.S.C. Section 1501 et seq.

I. Davis-Bacon Act
All laborers and mechanics employed by contractors or subcontractors in the performance of construction work, including alterations and repairs, in excess of $2,000.00, financed in whole or in part with federal funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis-Bacon Act, as amended, 40 U.S.C. sections 276a - 276a-5. Any such construction contract shall include and comply with the required contract provisions and rules set forth in 29 C.F.R. §5.5. Further, the payroll reports (along with the "Statement of Compliance") and basic records are required to be maintained and submitted, or made available, pursuant to 29 C.F.R. §5.5(a)(3). No payment, advance, grant, loan or guarantee of funds shall be approved by the federal agency unless there is on file with the agency a certification by the contractor that the contractor and its subcontractors have complied with the provisions of29 C.F.R. §5.5. A breach of the contract clauses in 29 C.F.R. §5.5 may be grounds for termination of the contract, and for debarment as a contractor/subcontractor, as provided in 29 C.F.R. §5.12. Labor standards inter.views/investigations shall be made as necessary to assure compliance. See 29 C.F.R. §5.6(a)(3).

VII. ADMINISTRATIVE REQUIREMENTS
A. Generally
The following requirements and standards must be complied with: 2 CFR Part 200, et al.

SUBRECIPIENT · shall procure all materials, property, or services in accordance with the requirements of2 CFR 200.318:326.

B. Procurement
(!) Compliance. The SUBRECIPIENT shall comply with current HUD and AUTHORITY policies concerning the procurement of equipment, goods, and services, and shall maintain

Page 12 ends

EXHIBIT 2
City Council 8 – 14 5/2/2023
inventory records of all non-expendable personal property as defined by such policy as may be procured with funds provided herein. The SUBRECIPIENT shall report to the AUTHORITY all program assets (unexpended program income, property, equipment, etc.), and upon the AUTHORITY'S request, such assets shall revert to the AUTHORITY upon termination of this AGREEMENT.
(2) Pursuant to 2 CFR 200.331 (a) (4), the Indirect Cost Rate for the SUBRECIPIENT's award shall be an approved federally recognized cost rate negotiated between the SUBRECIPIENT and the Federal government, or, if no cost rate exists, the de minims indirect cost rate as defined in 2 CFR 200.414(b) Indirect (F & A) costs shall be used. For this agreement, the de minims indirect cost of 10% will apply.
(3) Use and Reversion of- Assets. The use and disposition of equipment under this AGREEMENT shall be in compliance with the requirements of2 CFR Part 200. ( 4) Pursuant to the CARES Act, SUBRECIPIENT may deviate from applicable procurement standards when using these funds to procure goods and services to prevent, prepare for, and respond to coronavirns, notwithstanding 24 CFR 576.407(±) and 2 CFR 200.317-200.326.

C. Reporting
Reporting requirements must conform to the policies and procedures as established by the AUTHORITY and 24 CFR § 576.500. The SUBRECIPIENT shall submit to the AUTHORITY, on or before the 15th day of October, January, April, and July, as part of the Quarterly Report:
(I) Payment Request. An original request for reimbursement and true copies of invoices, receipts, agreements, or other documentation supporting and evidencing how the EHV Services Fee Funds have been expended during the applicable quarter. (2) Quarterly Activities and written cumulative (year-to-date) reports of activities, program accomplishments, new program information, and up-to-date program statistics on expenditures, caseload and activities. Failure to provide any of the required documentation and reporting will cause the AUTHORITY to withhold all or a portion of a request for reimbursement until such documentation and reporting has been received and approved by the AUTHORITY.
(3) Any other such reports as the AUTHORITY (or HUD) shall reasonably require and/or request, including but not limited to the following ·information: monthly . records of all ethnic and racial statistics of persons and families benefited by the SUB RECIPIENT in the performance of its obligations under this AGREEMENT.

D. Record Keeping
Sufficient records must be established and maintained to enable the AUTHORITY and HUD to determine whether the EHV Services Fee requirements are being met. Record keeping requirements must conform to the policies and procedures as established by the AUTHORITY.

All accounting records, reports, all evidence pertaining to costs, expenses, and EHV Services Fee Funds of the SUBRECIPIENT, and all documents related to this AGREEMENT shall be maintained and kept available at the SUBRECIPIENT'S office or place of business for the

Page 13 ends

EXHIBIT 2
City Council 8 – 15 5/2/2023
duration of the AGREEMENT and thereafter for five (5) years post-completion of an audit in conformity with the EHV Services Fee requirements, except as hereinafter provided relating to retention of any records or documentation.existing, created, or maintained in compliance with Lead-based Paint regulations, which likely require longer retention as outlined below. Records which relate to (a) complaints, claims, administrative proceedings or litigation arising out of the performance of this AGREEMENT, or (b) costs and expenses of this AGREEMENT to which the AUTHORITY or any other governmental agency takes exception, shall be retained beyond the five (5) years until complete resolution or disposition of such appeals, litigation claims, or exceptions. All said records must be retained for the greater of the aforementioned duration or the periods specified in 24 CFR 576.500(y). All records relating to, or created or maintained in· compliance with, the Lead-Based Paint regulations shall be retained and maintained by the SUBRECIPIENT indefinitely, including without limitation, all inspection report(s), disclosure statement(s), and clearance report(s). Copies ·made by microfilming, photocopying, or similar methods may be substituted for the original records. The AUTHORITY, HUD and auditors shall have the right to access all the SUBRECIPIENT records for as long as the records are retained by the SUBRECIPIENT. In the event the SUBRECIPIENT does not make the above-referenced documents available within the City of Santa Ana, California, the SUBRECIPIENT agrees to pay all necessary and reasonable expenses incurred by the AUTHORITY in conducting any audit at the location where said records and books of account are maintained.

The SUBRECIPIENT agrees to meet the requirements set forth in 24 CFR § 576.500.

VIII. EVALUATION AND MONITORING
A. Generally
The AUTHORITY will monitor the performance of the SUBRECIPIENT against goals and performance standards as required herein. The SUBRECIPIENT shall provide the AUTHORITY all necessary reporting information as required by the AUTHORITY in the administration and review of the Program. Substandard performance as determined by the AUTHORITY will constitute noncompliance with this AGREEMENT. If action to correct such substandard performance is not taken by the SUBRECIPIENT within a reasonable period of time after being notified by the AUTHORITY, contract suspension or termination procedures will be initiated.

B. Access to Records
The SUBRECIPIENT gives the AUTHORITY and HUD, including their authorized representative, access to and the right to examine all records, books, papers, items, emails, and documents, both physical and electronic, relating to the program.

C. Audit
The AUTHORITY shall have the right to audit and monitor any program income as a result of an EHV Services Fee activity. Upon request by the AUTHORITY and for audit purposes, the SUBRECIPIENT further agrees to provide all files, records, and documents pertaining to related activities and clientele demographic data.

Page 14 ends

EXHIBIT 2
City Council 8 – 16 5/2/2023
IX.
x.

LIABILITY
A. Generally
Each party to this AGREEMENT acknowledges that it will be liable for its own negligent acts or negligent omissions by or through itself, its employees, agents, and subcontractors. Each party further agrees to defend. itself and themselves, and to pay any judgments and costs arising out of such negligent acts or omissions, and nothing in this AGREEMENT shall impute or transfer any such liability from one to the other. In other words, the SUBRECIPIENT agrees to be fully responsible for its negligent acts or omissions, or any intentional tortuous acts which result in claims or suits against the AUTHORITY, and agrees to be liable for. any damages proximately caused by said acts or omissions. Nothing herein shall be construed as consent by a State or AUTHORITY agency or subdivision to be sued by third parties in any matter arising out of any contract, and nothing herein is intended to serve as a waiver of sovereign immunity where sovereign immunity applies.

B. AUTHORITY not Liable for Funds
The SUBRECIPIENT further acknowledges that the source of the EHV Services Fee Funds is a federal pass-through grant to the SUBRECIPIENT. The AUTHORITY shall have no obligation to advance or pay the SUBRECIPIENT with any funds other than the EHV Services Fee Funds the AUTHORITY receives from HUD.

C. Hold Harmless
The SUBRECIPIENT shall defend, indemnify and save harmless the AUTHORITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all damages to property or injuries to or death of any person or persons, including property and employees or agents of the AUTHORITY, and shall defend, indemnify and save harmless the AUTHORITY, its officers, agents, employees, representatives, volunteers, and student externs from and against any and all claims, demands, suits, actions or proceedings of any kind or nature, including, but not by way of limitation, workers compensation claims and attorney fees/expenses for litigation or settlement, resulting from or arising out of the negligent or wrongful acts, errors or omissions of the SUBRECIPIENT, its officers, directors, employees, agents, subcontractors, and suppliers arising out of the SUBRECIPIENT's performance of this AGREEMENT.

CONFLICTS OF INTEREST
The SUBRECIPIENT shall comply with 2 CFR 200.112 with respect to Jhe use of program funds to procure services, equipment, supplies, or other property. With respect to all other decisions involving the use of program funds, the following restriction shall apply: No person who is an employee, agent, consultant, officer, or elected or appointed official of the SUBRECIPIENT and who exercises or has exercised any functions or responsibilities with respect to assisted activities, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract, or agreement with respect thereto, or the proceeds there under, either for himself or herself, or for those with who he or she has family or business ties, during his or her tenure or for one(!) year thereafter.

Page 15 ends

EXHIBIT 2
City Council 8 – 17 5/2/2023
XI. ASSIGNABILITY
None of the duties of, or work to be performed by, the SUBRECIPIENT under this AGREEMENT shall be subcontracted or assigned to any agency, consultant, or person without the prior written consent of the AUTHORITY. The SUBRECIPIENT must submit all subcontracts and other agreements that relate to this AGREEMENT to the AUTHORITY. No subcontract or assignment shall terminate or alter the legal obligations of the SUBRECIPIENT pursnant to this AGREEMENT.

XII. EXCLUSIVITY OF AGREEMENT
This AGREEMENT supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the use of the AUTHORITY's EHV Services Fee Funds by the SUBRECIPIENT and contains all the covenants and agreements between the parties with respect to such EHV Services Fee Funds iu any manner whatsoever. Each party to this AGREEMENT acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in writing and signed by both the AUTHORITY and the SUBRECIPIENT.

XIII. AMENDMENTS OR MODIFICATIONS
The SUBRECIPIENT shall not obligate, encumber, spend, or otherwise utilize program funds for any activity or purpose not included or not in conformance with the budget as apportioned and as submitted to the AUTHORITY unless:
( 1) The SUBRECIPIENT has received explicit written approval from the AUTHORITY to undertake such actions, or
( 2) Budget changes may be made among approved program activities and among approved budget categories so long as the specific project activity has been approved, there is no change to the total grant amount, and the changes to the budget are documented.

Any program modification request by the SUBRECIPIENT must be requested at least forty-five (45) days prior to the end of the term of this AGREEMENT. No modification to this AGREEMENT shall be binding by either party unless in writing and signed by both parties.

In the event that the AUTHORITY approves any amendment to !lie funding allocation, the SUBRECIPIENT shall be notified in writing and such notification shall constitute an official. amendment.

The AUTHORITY may, at its discretion and upon prov1s10n of proper notice to the SUBRECIPIENT, amend this AGREEMENT to conform with changes in Federal, State, and/or the AUTHORITY laws, regulations, guidelines, directives, and objectives. Such amendments shall be incorporated by written amendment as a part of this AGREEMENT.

Page 16 ends

EXHIBIT 2
City Council 8 – 18 5/2/2023
XIV. VIOLATION OF TERMS AND CONDITIONS
A. Termination
If, due to any cause, the SUBRECIPIENT fails to comply with the terms, conditions or requirements of this AGREEMENT, or any prior AGREEMENT whereby EHV Services Fee funds were received by the SUBRECIPIENT, whether stated in a Federal statute or regulation, an assurance, a State plan or application, a notice of award, or elsewhere, the AUTHORITY may terminate or suspend this AGREEMENT in accordance with 2 CFR 200.339 and in accordance with 2 CFR 200.340 by giving written notice, and the AUTHORITY may request in writing that all or some of the grant funds be returned even if the SUB RECIPIENT has expended the funds.

If the SUBRECIPIENT reports inaccurately, or if on audit there is a disallowance of certain expenditures, the SUBRECIPIENT agrees to remedy the acts or omissions causing the disallowance and repay the AUTHORITY all amounts spent in violation thereof. If the SUB RECIPIENT engaged in fraudulent activity to obtain and/or justify expenditure of the EHV Services Fee funds granted hereunder, the SUBRECIPIENT shall be required to reimburse the AUTHORITY of all such funds that were obtained and/or spent under fraudulent circumstances, and the AUTHORITY reserves the right to take other remedies that may be legally available.

The SUBRECIPIENT agrees to return all funds as requested by the AUTHORITY under this section within thirty (30) days of receipt of the written request.

Any objections regarding terminations or suspensions shall be made by the SUBRECIPIENT in writing and mailed to the AUTHORITY pursuant to the above NOTICES section.

XV. CLOSE-OUT
The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR 200.343, including the following:

I. SUBRECIPIENT must submit, no later than ninety (90) calendar days after the end date of the period of performance, all financial, performance, and other reports as required by the terms and conditions of the Federal award;

2. Unless the AUTHORITY authorizes an extension, SUBRECIPIENT must liquidate all obligations incurred under the Federal award not later than ninety (90) calendar days after the end date of the period of performance as specified in the terms and conditions of the Federal award;

3. SUBRECIPIENT must promptly refund any balances of unobligated cash that the AUTHORITY paid in advance or paid and that is not authorized to be retained by SUBRECIPIENT for use in other projects (See OMG Circular A-129 and 2 CFR 200.345);

4. SUBRECIPIENT must account. for any real and personal property acquired with Federal funds or received from the Federal government in accordance with 2 CFR 200.310-200.316 and 200.329; and,

Page 17 ends

EXHIBIT 2
City Council 8 – 19 5/2/2023

5. The AUTHORITY should complete all closeout actions for the Federal award no later than one year after receipt and acceptance of all required final reports.

XVI. VALIDITY AND SEVERABILITY
The invalidity in whole or in part of any provision of this ARGREEMENT shall not void or affect the validity of any other provision of this AGREEMENT. Whenever possible, each provision of this AGREEMENT shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this AGREEMENT is held to be prohibited by or invalid under applicable law, such provision shall be ineffective.only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions of this AGREEMENT.

XVII. LAWS GOVERNING THIS AGREEMENT
This AGREEMENT shall .be governed by and construed in accordance with the laws of the State of California, and all applicable federal laws and regulations.

XVIII. W AIYER
No delay or omission by the AUTHORITY hereto to exercise any right or power accruing upon any noncompliance or default by the SUBRECIPIENT with respect to any of the terms o.f this AGREEMENT shall impair any such right or power or be construed to be a waiver thereof. A waiver by either of the parties hereto of any of the covenants, conditions, or agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition, or agreement herein contained.

XIX. AGREEMENT DOCUMENT, EXHIBITS, AND ATTACHMENTS
All of the attachments and exhibits attached to this AGREEMENT are deemed incorporated by reference. This document may be executed in three (3) counterparts, each of which shall be deemed to be an original.

Page 18 ends

EXHIBIT 2
City Council 8 – 20 5/2/2023
Each undersigned represents and warrants that its signature hereinbelow has the power, authority and right to bind their respective parties to each of the tenns of this AGREEMENT, and shall indemnify the AUTHORJTY fully, including reasonable costs and attorney's fees, for any injuries or damages to the AUTHORJTY in the event that such authority or power is not, in fact, held by the signatory or is withdrawn.

IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the date and year first above written.

ATTEST

APPROVED AS TO FORM
SONIA R. ARV ALHO

Page 19 ends

HOUSING AUTHORITY OF THE CITY OF

SANTA ANA
STEVEN A. MENDOZA
Executive Director

MERCY HOUSE LIVING CENTERS
Chief Executive Officer
DUNS #:879797165
EXHIBIT 2
City Council 8 – 21 5/2/2023
EXHIBIT 2
City Council 8 – 22 5/2/2023
Name of Organization
Name of Funded Program
Annual Accomplishment Goal
Housing Authority of the City of Santa Ana
Scope of Work
Mercy House Living Centers
Landlord Engagement Program
I. Total number of unduplicated clients (Santa Ana and Non-Santa Ana Residents) anticipated to be served by the funded program, named above, during the contract period.

I 89 I Persons

11. Number of unduplicated Santa Ana residents expected to be served by the funded program during the contract period.

I 89!Persons •
Program and Funding Description
Ill. Description of Work - In the space below, describe the program to be.funded during the contract period. What specific activities will be undertaken durinn the contract neriod. Please be concise in vol.Jr resoonse. OnlV the viewable soace will orint.

The Mercy House Landlord Engagement Program (Program) will provide housing support assistance and housing stabilization services to Participants who are.issued an Emergency Housing Voucher (EHV) by the Santa Ana Housing Authority (SAHA).

The Program will focus on identifying rental units and making these available to households looking to become safely and stably housed during the COVID-19 pandemic in coordination and collaboration with housing service providers.

The Program will focus on assisting eligible households with securing long-term stable rental housing that meets the minimum standards required of EHV vouchers.

Services provided include: housing search assistance, housing navigation and stabilization services, funding for security deposits, holding fees, application fees, rental insurance, landlord incentives , recruitment and outreach to property owners, and other direct and indirect costs of the Program as outlined in the Program Budget attached herein.

Schedule of Performance
Estimate the number of unduplicated Santa Ana residents to be served by the funded program during the 12-month contract period per quarter. (Enter number of new Santa Ana clients served each quarter) FY 21-22: Quarter 2: October 1 - December 31 O
FY 21-22: Quarter 3: January 1 - March 31 30
FY 21-22: Quarter 4: April 1 -June 30 30
FY 22-23: Quarter 1: July 1 - September 30 29
89 Total unduplicated Santa Ana Residents to be served.

Schedule of Invoicing
Estimate the amount of grant funds to be requests
FY 21-22: Quarter 2: October 1 - December 31
FY 21-22: Quarter 3: January 1 - March 31
FY 21-22: Quarter 4: April 1 - June 30
FY 22-23: Quarter 1: July 1 - September 30
d dunno the 12-mont
$
$0.00
$103,833.33
$103,833.33
$103,833.33
311,500.00
Exhibit A

Page 1 of 1 ends

h contract period on a quarterly basis.

Total Grant
EXHIBIT 2
City Council 8 – 23 5/2/2023
Organization Name
Program Name
Cateaorv
Final Budget
Expenditures
Expenses Funded
bv Santa Ana - EHV
Mercy House Living Centers
Landlord Engagement Program
Expenses Funded Total Program
by Other Sources Budget
Housing Relocation and Stabilization Services
Proqram Staff Salaries $ 159,547 $
Proaram Staff Fringe Benefits $ 15 868 $
Direct Assistance
Security Deposit/Utility Depesit/Rental Application/Hold Fees $ 12,500 $ Utility Payments
Movina Costs
Renter's Insurance Reauired by the Lease
Mltiaation Fund
Fumishinas
Transnnrtalion Assistance
Other Assistance
Landlord Incentive
Indirect
Indirect Cost
Total
$ -
$ 350
$ 82 000
$ 10,085
$ 31,150 $ -
$311,500 $0.00

LIST ALL OTHER PROGRAM FUNDS THAT HAVE BEEN SECURED
(Total Funds for Program must equal Total Program Budget above) Source
$
$
$
$
$
$
$
$
$
$
Santa Ana EHV S ecial Fees $
Exhibit B

Page 1 of 1 ends

$
$
159,547
15,868
12,500
-
-
350
-
82,000
10,085
-
-
-
31,150
$311,500
Amount
311,500
311500
311,500
Total Organizational
Budget
$0.00
EXHIBIT 2
City Council 8 – 24 5/2/2023
Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions
This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 29 CFR Part 98, Section 98."510, Participants' responsibilities. The regulations were published as Part VII of the May 26, 1988 Federal Register (pages 19160-19211). (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION - Attached)
(I) The prospective recipient of federal assistance funds certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency.
(2) Where the prospective recipient of federal assistance funds is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

Larry Haynes, Chief Executive Officer
Name and Title of Authorized Representative
'J-P- 1/21/2022
Sigiia(ure

EXHIBITC

Page 1 ends

EXHIBIT 2
City Council 8 – 25 5/2/2023

INSTRUCTIONS FOR CERTIFICATION

1. By signing and submitting this proposal, the prospective recipient of federal assistance funds is providing the certification as set out below.

2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective recipient of federal assistance funds knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the Department of Labor (DO L) may pursue available remedies, including suspension and/or debarment.

3. · .Tue prospective recipient of federal assistance funds shall provide immediate written notice to the

4. 5.

6. 7.

8. 9.
person to which this proposal is submitted if at any time the prospective recipient of federal assistance funds learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations.

The prospective recipient of federal assistance funds agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the DOL.

The prospective recipient of federal assistance funds further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and voluntary exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions.

A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to check the List of Parties Excluded from Procurement or NonProcurement Programs.

Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the DOL may pursue available remedies, including suspension and/or debarment.

EXHIBITC

Page 2 ends

EXHIBIT 2
City Council 8 – 26 5/2/2023
Certification Regarding Lobbying
Certification for Contracts, Grants, Loans, and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that:
(I) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contact, grant, loan or cooperative · agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member ofCongress·in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontract, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

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

Mercy House Living Centers
Grantee/Contactor Organization
Larry Haynes, Chief Executive Officer
Name of Certifying Officer

EXHIBITD
Page I of2
Landlord Engagement Program
Program Title
1/21/2022
Date
EXHIBIT 2
City Council 8 – 27 5/2/2023
SUBRECIPIENT warrants the following:

1. SUBRECIPIENT will comply with Public Law 88-352, Title VI of the Civil Rights Act of 1964 (42 U. S. C. section 2000 et seq.) and implementing regulation in 24 CPR Part 1.

2. No person iri the United States shall on the ground ofrace, color, religion, national origin, or sex, be excluded from participation in, or be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with community development funds made available pursuant to the ACT.

3. All laborers and mechanics, employed by contractors or subcontractors iri the performance of construction work financed in whole or in part with community development funds shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined in accordance with the Davis-Bacon Act, as amended, 40 U. S. C. Sections 276 a 1-5, except for individuals who perform services for which they volunteered; do not receive compensation for such services; or are paid expenses, reasonable benefits, or a nominal fee for such services; and are not otherwise employed at any time in construction work.

4. SUBRECIPIENT will comply with all Federal statutes applicable to projects funded with community development funds, except that (a) SUBRECIPIENT.does not assume CITY'S environmental responsibilities described at 24 CPR 570.604; and (b) SUBRECIPIENT does not assume CITY'S responsibility for initiating the review process under Executive Order 12372.

EXHIBITD

Page 2 ends

EXHIBIT 2
City Council 8 – 28 5/2/2023
Community Development Agency
www.santa-ana.org/community-development
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 2, 2023
TOPIC: Biennial Modification to the PY 2021-24 Regional and Local Workforce Plan

AGENDA TITLE
Biennial Modification to the Program Year (PY) 2021-24 Regional and Local Workforce Plan for Grant Funds Received from the Federal Title I Workforce Innovation and Opportunity Act

RECOMMENDED ACTION

1. Approve the modification to the Regional and Unified Local Plan for PY 2021-24 and direct staff to submit to the California Workforce Development Board and State of California Employment Development Department.

2. Authorize the Mayor to execute all documents necessary for the submission of the PY 2021-24 modified Regional and Unified Local Plan.

3. Authorize staff to submit revisions to the PY 2021-24 Regional and Unified Local Plan should they be necessary as requested by the California Workforce Development Board or California Employment Development Department.

DISCUSSION
Under the Workforce Innovation and Opportunity Act (WIOA), a biennial update of region and local workforce plans is required to ensure plans remain current and account for changes in labor market and economic conditions or other factors affecting the implementation of the local plan (29 U.S. Code 3123).

The California Unified Strategic Workforce Development Plan (State Plan) is an overarching state policy document that provides a conceptual outline for Local Workforce Boards and their partners as they jointly develop regional and local plans.

The State Plan policy objectives, developed in collaboration with WIOA partners and Local Boards, work towards the shared vision of creating a comprehensive system that impacts poverty, promotes income mobility, and embeds equity as a cornerstone of service-delivery.

As outlined under WIOA Section 106, Regional Plans provide a roadmap for alignment of resources and investments to meet specific outcomes within the 15 Regional City Council 9 – 1 5/2/2023
Biennial Modification to the PY 2021-24 Regional and Local Workforce Plan May 2, 2023

Page 2 ends

Planning Units (RPU). Regional Plans are used to articulate how RPUs will build intentionality around industry sector engagement, drive workforce development outcomes across multiple jurisdictions, and expand on-ramps to career pathways for individuals who experience barriers to employment.

WIOA Section 108 requires Local Plans to provide an action plan for operationalizing the roadmap laid out in the Regional Plan by describing how individuals access services through their local America’s Job Center of California (AJCC) system. Local Plans articulate how Local Boards will coordinate with local partners to ensure personcentered service-delivery.

In alignment with the recently revised State Plan, the draft Regional and Unified Local Plans (Exhibit 1 and Exhibit 2) focus on the development of partnerships to create a coordinated service delivery approach to targeted populations, including individuals with barriers to employment and hard to serve populations.

In order to develop a Regional and Local Plan that represents all the moving parts involved in the workforce system, staff from the Anaheim, County of Orange, and Santa Ana Workforce Boards (Orange Region Planning Unit - ORPU) proactively engaged community leaders and key partners through a series of community stakeholder engagement sessions held in the fall of 2022. The ORPU collectively approached leaders and decision makers as one workforce system. For this reason, the ORPU also collaborated on the preparation of a Local Plan to develop a Unified Local Plan.

The draft Regional and Unified Local Plan concluded a 30-day public review and comment period with no formal comments received. The Executive Committee of the Santa Ana Workforce Development Board met on March 22, 2023 to approve the Plan documents as presented and forward a recommendation to City Council to approve the Regional and Unified Local Plan and authorize the Mayor to execute all documents to allow staff to submit to the state by a June 30, 2023 deadline.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Exhibit PY 2021-24 Two Year Modification - Regional Plan

2. Exhibit PY 2021-24 Two Year Modification - Local Plan Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager
City Council 9 – 2 5/2/2023

REGIONAL PLAN

ORANGE REGIONAL PLANNING UNIT
2023 BIENNIAL

MODIFICATION TO THE
Program Year 2021-2024
EXHIBIT 1
City Council 9 – 3 5/2/2023
Orange Regional Planning Unit
Contact: Annette Kelly-Whittle, Regional Organizer
Phone: (909) 362-7082
Email: [email protected]
Anaheim Workforce Development Board
Contact: Marco Lucero
Phone: (714) 765-4341
Email: [email protected]
Orange County Workforce Development Board
Contact: Carma Lacy
Phone: (714) 480-6420
Email: [email protected]
Santa Ana Workforce Development Board
Contact: Deborah Sanchez
Phone: (714) 565-2621
Email: [email protected]
EXHIBIT 1
City Council 9 – 4 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan

TABLE OF CONTENTS
I. INTRODUCTION AND OVERVIEW.......................................................................................................... 1 II. ANALYTICAL OVERVIEW OF THE REGION.............................................................................................. 4 A. Analysis of Employment and Unemployment Data.......................................................................... 8 B. Analysis of the Educational and Skill Levels of the Workforce, the Current Needs of Employers in the Region, and Relevant Skill Gaps........................................................................................................14 C. Analysis of Industries and Occupations with Existing and Emerging Demand ...............................19 III. REGIONAL INDICATORS...............................................................................................................21 A. Regional Indicator and Associated Outcomes and Metrics............................................................21 IV. FOSTERING DEMAND-DRIVEN SKILLS ATTAINMENT.......................................................................25 A. In-Demand Industry Sectors for the Region ...................................................................................25 B. Sector Strategies and Other Industry-Focused Initiatives..............................................................28 C. Strategies to Communicate with Regional Employers....................................................................30 V. ENABLING UPWARD MOBILITY FOR ALL CALIFORNIANS ....................................................................31 A. Working with Businesses that Provide Quality Jobs.......................................................................31 B. Shared Target Populations and Targeted Service Strategies..........................................................32 C. Equity and Ensuring Equal Access to Training and Services ...........................................................33 VI. ALIGNING, COORDINATING, AND INTEGRATING PROGRAMS AND SERVICES................................35 A. Regional Service Strategies.............................................................................................................35 B. Regional Administrative Cost Arrangements..................................................................................36 VII. PRIORITY CONSIDERATIONS FOR PROGRAM YEARS 2021-24.........................................................36 VIII. APPENDICES ....................................................................................................................................40 A. Stakeholder and Community Engagement Summary (Attachment 1) ...........................................41 B. Public Comments Received that Disagree with the 2023 Biennial Modification to the PY 21-24 Regional Plan (Attachment 2).................................................................................................................44 C. SIGNATURE PAGE (Attachment 3) ......................................................................................................45 EXHIBIT 1
City Council 9 – 5 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 1 I. INTRODUCTION AND OVERVIEW
With the passage of the Workforce Innovation and Opportunity Act (WIOA) of 2014, Congress moved the national workforce system in a new direction regarding how to approach economic and labor market demands. While establishing local workforce areas over the last four decades has always considered local labor markets, WIOA recognizes that economies tend to be regional and may extend beyond the political boundaries that define local areas. WIOA’s recognition of regional economies led to California’s establishment of Regional Planning Units (RPUs), which represent groups of local workforce areas that work collaboratively to develop strategies reflecting the regional economic needs of businesses and the workforce.

In accordance with federal and state guidance, the Orange Regional Planning Unit has developed a four-year Regional Plan to guide strategic initiatives throughout Program Years (PY) 2021-24, which cover June 1, 2021, through June 30, 2025. WIOA requires a Biennial Modification to the Regional Plan. This 2023 version of the Plan serves as the required update and, once approved by state officials, will become the official version of the PY 21-24 Regional Plan from July 1, 2023, through June 30, 2025.

The Orange Regional Planning Unit
The Orange Regional Planning Unit (RPU) is comprised of the three local Workforce Development Boards (WDBs) serving 34 cities and all unincorporated areas in Orange County. The RPU includes the Anaheim Workforce Development Board, which serves the City of Anaheim, the Santa Ana Workforce Development Board, which serves the City of Santa Ana, and the Orange County Workforce Development Board, which serves the remaining 32 cities and the unincorporated areas of Orange County.

Orange County is the third-most populous county in California (3,162,245 people in 2022)1 and the sixth-most populous in the nation. Orange County’s population declined from 3,169,542 in 2022 and is projected to decrease by 17,537 over the next five years2.

This decrease reflects an outmigration brought about by rising costs in the region, including housing costs which are among the highest in the state. This can make it difficult for many young people and families to afford to live in Orange County.

Regional Plan Content
WIOA prescribes content for regional plans, which focus principally on the region's labor market, economic conditions, growth industries, and other promising sectors, and how the local workforce development system responds to these factors through sector-based career pathway strategies. WIOA-required local plans supplement the mandatory 1 California Department of Finance, Demographic Research Unit 2 Lightcast, 2021, https://analyst.lightcast.io/.

EXHIBIT 1
City Council 9 – 6 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 2 elements of the regional plan by describing how the workforce system partners collaborate to develop and implement services that meet the unique needs of job seekers and businesses in the region. Other required regional plan content, some unique to California, includes regional indicators of success, job quality, and strategies promoting equity.

Development of the Regional Plan and Its 2023 Modification After the implementation of WIOA, an initial four-year plan was developed for the region, which covered PY 2017-20. It was updated in 2019 in accordance with statutory requirements. In response to guidance published by state officials in September 2020, Orange RPU representatives began to prepare a new plan for PY 2021-24. However, the context for this planning was unprecedented, as the COVID-19 pandemic was still in its early stages before the widespread availability of vaccines and the reopening of businesses and communities. The PY 21-24 Orange RPU Regional Plan reflects the circumstances under which it was developed, highlighting the immediate and severe impacts and limitations resulting from the pandemic, along with various uncertainties regarding the economy, labor market, and workforce participation. The 2023 Biennial Modification to the PY 21-24 Regional Plan has been developed under far different circumstances than the original version. As such, RPU leadership has been able to address regional approaches and initiatives from a clearer vantage point, where reopening and recovery characterize the regional economic and community landscape.

The original PY 21-24 Regional Plan and this 2023 Modification have benefitted from the intensive review of regional collaboration among the three local boards and input by workforce system partners and other stakeholders. Community input during the 2020/21 process used to develop the Plan led to discussions about the differences between the North and South Orange County communities. For some, the perception of South Orange County is one of affluence with great beaches, schools, and upscale amenities. While affluent areas exist in South Orange County, some vulnerable communities and families live below the federal poverty line. Also noted during these discussions, South County residents have access to fewer community resources and service providers than central and north county areas. As described below, ten of the eleven cities with disadvantaged census tracts are in North Orange County.

Impact of the Pandemic on Businesses and Workers
Orange County experienced several years of job growth and economic vitality, resulting in record-low unemployment rates before the COVID-19 pandemic struck in early 2020.

The pandemic derailed this long growth streak. The long-term social and economic impacts of this stall in economic growth remained to be seen when the Regional Plan was being developed in December 2020 and early 2021. As the region has recovered and transitioned to the endemic phase of the coronavirus, the economy is again characterized by many pre-pandemic conditions, including full employment and growth in key sectors.

However, many community members and businesses still feel the social and economic EXHIBIT 1
City Council 9 – 7 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 3 hardship and disruptions that ensued during the height of the pandemic as they struggle to regain footing. The county experienced widespread job loss and economic hardship due to the pandemic, with many small businesses closing permanently.

The COVID-19 pandemic and the resulting economic fallout have disproportionately impacted specific populations and communities. The impacts remain particularly prevalent among Black people, Latinos, and other people of color. Additionally, the virus has disproportionately affected communities of color, with higher infection and death rates. The pandemic exacerbated existing inequalities and economic disparities, highlighting the need for equitable policies, programs, and services that support the most vulnerable populations and disinvested communities to address issues that include disparities in access to healthcare, economic impact, and education. In Orange County, census tracts identified as “disadvantaged” by the California Environmental Protection Agency are located in the eleven Orange County cities of Fullerton, Anaheim, Santa Ana, Garden Grove, Westminster, Stanton, Lake Forest, Huntington Beach, Costa Mesa, Placentia, Buena Park.

The following economic and demographic analyses highlight the immediate and early impacts of COVID-19 on Orange County and subsequent recovery, along with projections for the region throughout the period addressed by the 2023 Biennial Modification to the PY 21-24 Orange RPU Regional Plan.

EXHIBIT 1
City Council 9 – 8 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 4 II. ANALYTICAL OVERVIEW OF THE REGION
There is no question that the COVID-19 pandemic wreaked havoc on the region’s communities, labor market, and economy. The education system, with many schools closed for in-person instruction schools adapted to new ways of teaching and learning.

Many schools moved to remote or online learning during the pandemic. Schools have reopened, and many continue to offer hybrid programs where students alternate between in-person and online instruction. However, the disruption in higher education is still felt with low enrollments. California's community college enrollments have reached the lowest rate in three decades. Since 2019, enrollment at over 116 campuses has dropped by an estimated 300,000 students, a drastic decrease of 18%. The four Orange County Community College Districts have seen a reduction in the student count in the Spring of 2022 by 43,732 compared to the same semester in 2019.

Economic factors will likely continue influencing student decisions amid rising inflation, the possibility of a recession, and California’s high cost of living. Finances and family responsibilities often take precedence over education for low-income families. A survey conducted by the RP Group, a nonprofit research center, of former California community college students found that one-third haven’t re-enrolled because they’ve prioritized work.

At the same time, 22% said they have prioritized taking care of family or other dependents. Another 29% said they struggled to keep up with their classes3.

Orange County’s Gross Domestic Product (GDP) took
a hit in 2020, dropping to 222,683,756.4 Orange
County’s economy ranked 3rd in California and 8th
nationally in 2021 based on its GDP. Orange County
has employed 1,598,700 in nonfarm jobs as of
December 2022. The median household income was
$85,400 in 2018, $25,100 above the national average.5
A little over a year after the COVID-19 pandemic began, economists and other observers noted an increase in the job quit rate, as measured by the U.S. Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) program. While JOLTS recorded a seasonally adjusted quit rate of 2.4% in the second month of the program’s existence (January 2001), this rate was not surpassed until March 2021, when it reached

2.5 percent. The rate rose to 2.8% in April 2021, then 3.0% in December 20216. The rise in the quit rate has been called the “Great Resignation,” with many popular press articles speculating why individuals have become more willing to leave their current employers.

The fact that the labor force participation rate remains below its pre-pandemic high suggests that some who quit their jobs found new jobs, and others exited the labor force. 3 Statewide Covid-19 Impact Surveys of Students and Employees 4 “GDP: U.S. Bureau of Economic Analysis (BEA).” GDP | U.S. Bureau of Economic Analysis (BEA), www.bea.gov/data/gdp. 5 Lightcast, 2021, https://analyst.lightcast.io/. 6 U.S. Bureau of Labor Statistics (bls.gov) Year GDP
2017 $ 247,314,645
2018 $ 225,920,029
2019 $ 230,680,258
2020 $ 222,683,756
2021 $ 238,228,949
EXHIBIT 1
City Council 9 – 9 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 5 This issue has likely contributed to the current unprecedented labor shortages, and a challenge businesses are expressing across industries in finding talent to fill open positions. Wages increased as companies worked to entice workers back to work after COVID-19 restrictions were lifted. These wage gains, however, were diminished by the high inflation the economy is experiencing.

The Orange County labor
force participation rate
reached 62.62% in
September. The rate is
well below the rate
before the pandemic. In
2019 the rate was

63.47%. It dipped to

61.08% in 2020 and even
lower in 2021 to 60.83%.

These numbers indicate
that some workers are still inactive despite momentum in the workforce. This may also be the result of outmigration and workers opting to retire over returning to work.

The pandemic has significantly changed the landscape of work. One of the most notable changes has been the shift toward remote work, which has become more common, and some companies have shifted to permanent remote work strategies. Additionally, the pandemic has accelerated the adoption of digital technologies and automation.

Companies rapidly digitized operations and processes to continue to operate during lockdowns and social distancing measures, which accelerated the adoption of technology use. The pandemic has also highlighted the importance of specific industries and occupations, particularly those related to healthcare, logistics, and online delivery. It has also shown the importance of gig economy workers and the need for better protection and benefits.

The county is experiencing demographic
shifts with economic and workforce
implications. Orange County’s senior
population will continue to increase
significantly while working-age
populations fall. According to the
California Department of Finance,
estimates show that seniors 65-74 will
increase by 17.75%, the 74-84 group by

65.7%, and 85 or older will increase by
268.7%. The population change will
require increased employment in
healthcare and other senior service
0 50 100 150 200 250 300
0-4
5-19
20-64
65-74
74-84
85+
Orange County Projected Population Change
between 2020-20604
Source: CA DOF, Demographic Research Unit, Population Projections, Last update: March 2020
EXHIBIT 1
City Council 9 – 10 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 6 occupations. The shrinking working-age population could impact economic prosperity and cause more challenges for employers filling open positions.

Ethnic diversity in Orange County is high. The national average for an area the size of Orange County is
1,289,103 racially diverse people, while there are 1.95 million in Orange County.
7 Orange County’s diversity is
projected to continue to grow through 2060. Whites
(39%) and Hispanics8 (36%) make up the largest
percentage of the Orange County population. White
population declined by 8% between 2017 and 2023.9
Growing diversity will increasingly be a key workforce
and economic development advantage for Orange County. Diversity often creates an environment where exchanging ideas, strategies, and viewpoints fuels innovation and entrepreneurship, contributing to sustained economic success. Racial diversity challenges local education providers and workforce development to support English learners’ success by improving program support and creating innovative programs such as vocational ESL programs. Non-English speakers represent 45.5% of Orange County residents, which is higher than the national average of 21.9%. In 2018, Spanish was the most common non-English language spoken, with 24.8% of Orange County residents being native Spanish speakers. Vietnamese (6.44%) and Mandarin (2.94%) are the second and third most common languages.10
Many diverse populations, low-income communities, communities of color, and immigrant communities experience disproportionate economic and social impacts due to systemic inequalities. These include limited access to education, employment opportunities, healthcare, higher poverty rates, unemployment, and underemployment. Additionally, these communities are more vulnerable to the impacts of natural disasters like COVID19, environmental pollution, and other forms of environmental injustice. The pandemic has disproportionately affected these communities, with higher rates of illness and death among people of color. Many within this population have been hit harder by the economic downturn.

Industry employment, including self-employment, private household workers, and farm and nonfarm jobs in Orange County, is projected to reach 1,890,300 by 2028, a 7.2% increase over the ten-year projection period of 2018 to 2028. Eleven of the 13 nonfarm industry sectors are projected to grow during this period. 7Lightcast, 2021, https://analyst.lightcast.io/.
8 Lightcast, 2021, https://analyst.lightcast.io/, Hispanic population includes all races that identify as Hispanic. 9 Lightcast, 2021, https://analyst.lightcast.io/.
10 Bureau, US Census. “American Community Survey Data Releases.” The United States Census Bureau, 31 July 2020, www.census.gov/programs-surveys/acs/news/data-releases.2018.html. 39%
34%
22%
2% 3%
Racial/Ethnic Breakdown 2020
White
Hispanic
Asian
Black
Other
Source: LIGHTCAST Labor Market Analytics, 2021
EXHIBIT 1
City Council 9 – 11 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 7 Total nonfarm jobs are projected to gain 118,000 jobs by 2028. Significant job growth is projected in four industry sectors. Educational, health services, and social assistance are expected to gain 38,900 jobs, with 18,400 projected to be in ambulatory health care services and 34,300 in health care and social services. Professional and business services are projected to add 29,500 jobs. In 2020, leisure and hospitality were projected to grow by 12.9%, adding 27,400 jobs. The growth projection has decreased to 8.8%, adding 19,600 jobs. Construction projections also have fallen, with a projected increase of 6,700 jobs by 2028 instead of 19,000 jobs by 2026.11 The industry sectors that added the most jobs between 2020 and 2023 are represented in the chart below.

Jobs & Growth
NAICS Description 2020 Jobs 2023 Jobs 2020 - 2023 Change 62 Health Care and Social Assistance 191,913 215,168 23,255 72 Accommodation and Food Services 131,918 145,039 13,121 56 Administrative and Support and Waste Management and
Remediation Services 140,387 151,255 10,868
55 Professional, Scientific, and Technical Services 128,559 136,465 7,906 23 Educational Services 27,682 32,761 5,079
Source: LIGHTCAST 2023
Orange County is a thriving hub for medical device companies and cutting-edge industry sectors, including life sciences, information technology, digital arts and media, and 11 Labor Market Information, EDD, 2021, www.labormarketinfo.edd.ca.gov -3,800
1,600
2,300
3,000
3,400
4,200
5,400
6,700
7,400
19,600
29,500
34,300 4600
-10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Manufacturing
Wholesale Trade
Other Services (excludes 814-Private Household Workers) Information
Retail Trade
Transportation, Warehousing, and Utilities
Government
Construction
Financial Activities
Leisure and Hospitality
Professional and Business Services
Educational Services (Private), Health Care, and Social Assistance Growth by Industry Sector
Source: EDD Labor Market Information
Health Care and Social Assistance
EXHIBIT 1
City Council 9 – 12 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 8 advanced manufacturing. It is also known for its growing ecosystem of entrepreneurship and innovation. Many Southern California startups concentrate on virtual and augmented reality, cybersecurity, biomedical science, bioengineering, medical imaging, medical device, and environmental health technologies. Over the next several years, Orange County is poised to be at the center of emergent industries based on educational and intellectual assets in the region. The county’s most robust traded clusters with a high employment specialization in the area are medical device manufacturing (US Ranking 1), lighting and electrical equipment manufacturing (US Ranking 2), apparel manufacturing (US Ranking 3), information technology and analytical instruments manufacturing (US Ranking 5), and financial services (US Ranking 6).12
A. Analysis of Employment and Unemployment Data
Unemployment as of December 2022 is at 2.5%, which is lower than the pre-pandemic levels. Orange County had a positive economic outlook before the impacts of the COVID19 pandemic. In January 2020, Orange County had an unemployment rate of 2.9%, the lowest in Southern California. In the preceding 12 months, the county’s unemployment rate had not exceeded 3.1%. Before California’s first statewide stay-at-home order was issued in March 2020, closing all nonessential businesses and restaurant dining, the unemployment rate stood at 2.8% in February of that year. The economic disruption from COVID-19 resulted in steep job losses, with the unemployment rate quadrupling at its peak of 15.5% in May 2020, the highest unemployment rate ever recorded for Orange County. The rates slowly declined to 7.7% in November 2020 and remained at 7.7% in December 2020 when regional stay-at-home orders went back into effect. This rate compares with an unadjusted unemployment rate of 8.8 percent for California and 6.4 percent for the nation during the same period.13
12 “U.S. Cluster Mapping: Mapping a Nation of Regional Clusters.” U.S. Cluster Mapping | Mapping a Nation of Regional Clusters, www.clustermapping.us/. 13 Labor Market Information, EDD, 2021, www.labormarketinfo.edd.ca.gov/data/lmi-by-subjects.html.

EXHIBIT 1
City Council 9 – 13 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 9 14
The unemployment rate is 2.5% as of December 2022, below the pre-pandemic level of

2.8% from February 2020. Unemployment rates sharply fell between January 2022 to May 2022. In June, the levels increased and have fluctuated slightly since. 15 14 Labor Market Information, EDD, 2023, Local Area Unemployment Statistics Orange County 15 Labor Market Information, EDD, 2023, Local Area Unemployment Statistics Orange County EXHIBIT 1
City Council 9 – 14 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 10 Concentrated job loss in hospitality and tourism stung more sharply during the pandemic in the Orange County region due to its economic dependence on tourism. In 2019, a record 50.2 million travelers visited Orange County, spending $13.0 billion. 16 However,
with the sustained closure during the pandemic of major tourism sites, especially Disneyland Park, the leisure and hospitality industry and surrounding cities remain heavily impacted. The percentage of unemployment by industry sector showed a grim picture for industries that rely heavily on tourism. As of November 2020, retail trade had the highest unemployment numbers at 16,063, and accommodation and food services had 10,815 unemployed. Other industries with high numbers of unemployment include healthcare and social assistance (11,628), manufacturing (11,215), and construction (9,371). 17 16 Orange County Visitors Association, 2019, Orange County Visitors Association 2019-2021 Destination Marketing Plan, www.travelcostamesa.com/visittheoc/wp-content/uploads/2019/08/Marketing.pdf. 17 Lightcast, 2021, https://analyst.lightcast.io/.
0%
1%
5%
11%
5%
11%
5%
10%
0%
3%
1%
2%
4%
2%
16%
3%
11%
9%
0%
0%
0%
0%
2%
4%
14%
2%
13%
4%
10%
1%
4%
2%
2%
2%
5%
12%
4%
10%
8%
0%
1%
1%
0% 5% 10% 15%
No Previous Work Experience/Unspecified
Government
Other Services (except Public Administration)
Accommodation and Food Services
Arts, Entertainment, and Recreation
Health Care and Social Assistance
Educational Services
Administrative and Support and Waste…
Management of Companies and Enterprises
Professional, Scientific, and Technical Services
Real Estate and Rental and Leasing
Finance and Insurance
Information
Transportation and Warehousing
Retail Trade
Wholesale Trade
Manufacturing
Construction
Utilities
Mining, Quarrying, and Oil and Gas Extraction
Agriculture, Forestry, Fishing and Hunting
Percent of Unemployment by Industry Sector
November 2020
% of National Unemployment % of Regional Unemployment
Source: LIGHTCAST Labor Market Analysis, 2021
EXHIBIT 1
City Council 9 – 15 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 11 The leisure and hospitality industry has rebounded, recovering all jobs lost during the pandemic. However, subsector unemployment in retail trade (11%) remains high.

Construction (14%) and manufacturing (13%) are other Orange County industries with high unemployment rates above the national average.

The pandemic-induced recession caused a loss of 267,400 nonfarm jobs between February and April 2020 in Orange County. The employment loss between March and April of 2020 alone was 225,800, the largest ever recorded in a single month. All industry sectors experienced declines between February and April, but leisure and hospitality (down 102,800) accounted for 38 percent of the total nonfarm job loss during this period18.

Most of the decline was between March and April, with a loss of 90,300 jobs. Seventyseven percent of the drop occurred in accommodation and food services (down 70,300 jobs), led by decreases in food services and drinking places (down 59,800 jobs). Other 18 Labor Market Information, EDD, 2023, Orange County monthly industry employment EXHIBIT 1
City Council 9 – 16 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 12 significant drops during this period include arts, entertainment, and recreation, which fell by 20,000 jobs. Trade, transportation, and utilities decreased by 31,400 jobs, with retail trade accounting for 66 percent of the decline (down 20,800 jobs). Wholesale trade dropped by 8,800 jobs, and transportation, warehousing, and utilities decreased by 1,800 jobs. Professional and business services declined by 29,200 jobs. Administrative and support services, which includes temporary help firms, dropped by 18,900 jobs.19 Pandemic Job-Related Losses20
Industry Feb-20 Mar-20 Apr-20 Dec-20 Feb to
Apr
%
change
April 2020
to
December
2022
% of
losses
recovered
Shortfall
as of
December
2022
Total Nonfarm 1,683,400 1,660,200 1,414,000 1,540,100 -267,600 15.9% 293,200 108.8% 23,800 Construction 106,400 103,000 92,700 100,700 -8,600 8% 15,600 114% 1,900 Manufacturing 159,000 158,200 143,900 148,700 -15,500 9.8% 13,900 92.1% -1,200 Transportation &
Warehousing 27,300 26,800 24,300 29,200 -2,400 9.0% -6,700 -223.3% -9,700 Professional &
Business Services 327,900 321,800 289,200 315,600 -37,900 12% 47,600 123% 8,900 Educational Services 33,400 32,400 26,100 29,100 -3,400 9.9% 11,300 154.8% 4,000 Health Care & Social
Assistance 205,800 204,000 181,200 203,300 -28,000 14.0% 39,500 160.6% 14,900 Leisure & Hospitality 225,800 220,300 133,100 148,900 -102,800 45.2% 90,700 97.8% -2,000 Other Services 54,400 52,900 34,600 42,600 -17,800 35.0% 17,600 88.9% -2,200 Government 168,000 169,100 159,000 154,500 -6,700 4.0% 3,200 35.6% -5,800 Employment Recovery
In December 2020, as
California moved slowly
toward reopening, regional
differences contributed to the
pace of recovery. The depth of
job losses and Orange
County’s reliance on service
sectors meant the region
would have to make up more
ground than other regions in
the state. How quickly
businesses reopened and how
public health risks evolved
contributed to their viability.

The recovery pace was slower
for sectors and companies that relied on in-person interaction. As of December 2020, the county recovered 142,800 nonfarm jobs, equivalent to 53% of the job losses since the pandemic recession. Most industries are experiencing incremental job gains monthly.

Transportation, utilities, and construction jobs have exceeded pre-pandemic levels, with the largest month-over increase, up 4,200 jobs. Wholesale trade gained 1,800 jobs, retail 19 Labor Market Information, EDD, 2021, https://www.labormarketinfo.edd.ca.gov/geography/orange-county.html 20 Labor Market Information, EDD, 2023, Industry Employment & Labor Force 25,700
141,700 131,800
155,600 153,000
189,100
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Dec-20 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Jobs Recovered between
June 2020 to December 2022
Source: EDD Labor Market Information
EXHIBIT 1
City Council 9 – 17 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 13 trade added 1,500 jobs, and transportation, warehousing, and utilities expanded by 900 jobs.21 As of December 2022, the county recovered 189,100 nonfarm jobs.

Most businesses in the
County have less than 49
employees. The revenue
of small businesses in
April 2020 decreased by

52.1% compared to
January 2020. As of
February 06, 2022, total
small business revenue
increased by 6.2%
compared to January
2020. The number of
small businesses open in
February 2022 increased by 5.1% compared to January 2020.

As of December 2022, Orange County has recovered from its job losses during the pandemic. Orange County lost 269,400 nonfarm jobs between February 2020 and April 2020. As of December 2022, OC has recovered 100% of the jobs it lost during the pandemic. The County gained 288,400 nonfarm jobs between April 2020 to December 2022. Government, manufacturing, financial services, and other services are industries that have yet to recover fully.

Orange County Employment Recovery 22
Title Feb 20 - Apr 20 Apr 20 - Dec 22 Surplus/Deficit
Total Nonfarm (269,400) 288,400 19,000
Leisure & Hospitality (92,700) 95,800 3,100
Trade, Trans. &
Utilities
(39,200) 45,000 5,800
Prof. & Bus. Svcs. (38,600) 48,400 9,800
Edu. & Health Svcs. (31,900) 50,300 18,400
Other Services (19,800) 14,200 (5,600)
Manufacturing (15,200) 14,400 (800)
Construction (13,700) 16,700 3,000
Government (9,000) - (9,000)
Financial Activities (7,000) 800 (6,200)
Information (2,300) 2,800 500
21 Labor Market Information, EDD, 2021, www.labormarketinfo.edd.ca.gov/data/lmi-by-subjects.html. 22 EDD Labor Market Information Division - Home Page (ca.gov) EXHIBIT 1
City Council 9 – 18 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 14 According to Opportunity
Insight’s Economic Tracker,
the drastic difference between
the low and high quartiles
shows that the pandemic
disproportionately affected
lower-income bracket workers.

In Orange County, as of
November 15, 2020,
employment rates among
workers in the bottom wage
quartile (<$29K) decreased by

21.9%, the middle quartile
($29K-$73K) decreased by
8%, and the high quartile (>$60k) increased 7.9% compared to January 202023. The same data, as of November 2022, shows those in the bottom quartile still have the largest drop in employment rates compared to January 2020, at 23.3%. Minority residents mostly held these lower-paying jobs and became much more financially insecure and unstable in this economic crisis.

B. Analysis of the Educational and Skill Levels of the Workforce, the Current Needs of Employers in the Region, and Relevant Skill Gaps
Orange County is home to major
universities such as the
University of California, Irvine
(UCI), California State
University, Fullerton (CSUF),
and Chapman University. The
County has four community
college districts with nine
community colleges. These
community colleges annually
educate approximately 310,000
students in credit and noncredit
courses.
23 “The Economic Tracker.” Economic Tracker, tracktherecovery.org/. 5%
0%
18%
1%
2%
46%
28%
Percent of workers in jobs paying $15.00 or less
Black or African
American
American Indian or
Alaska Native
Asian
Native Hawaiian or
Other Pacific Islander
Two or More Races
Hispanic or Latino
White
Source: LIGHTCAST Labor Market Analysis, 2021
Less Than … 9th Grade to
12th Grade
6%
High School
Diploma
17%
Some College
19%
Associate's
Degree
8%
Bachelor's
Degree
27%
Graduate
Degree and
Higher
16%
Orange County Educational Attainment -2022
Source: LIGHTCAST, Labor Market Analytics, 2023
EXHIBIT 1
City Council 9 – 19 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 15 Orange County’s primary competitive advantage is a talent pool of highly educated, qualified residents. In Orange County, 50% of adults over 25 have an associate degree or higher, while only 13.49% lack a high school diploma. Orange County residents with bachelor’s degrees are 6.3% above the national average, and 7.7% hold an associate degree, which is 0.9% below the national average.

Education data covers
the population aged
25 years or older,
indicating the highest
level of education
achieved. Inequitable
access to
postsecondary
education is a
persistent
problem. One way in
which this manifests is
through widely varying
educational
attainment across
races and ethnicity.

California’s Post-secondary to Prosperity Dashboard shows that only 16% of Latino residents hold a four-year degree. The dashboard also shows that most Latino residents have no college experience (59%), greater than all other groups.24 The most popular college majors in Orange County are Liberal Arts and Sciences (16,678 and 20%), Business Administration and Management (7,978 and 9%), and General Psychology (3,041 and 4%).

Orange County Regional Institutions Top Program Completions 25 CIP Code Program Completions (2021)

24.0101 Liberal Arts and Sciences/Liberal Studies 16,678

52.0201 Business Administration and Management, General 7,978

42.0101 Psychology, General 3,041

30.9999 Multi-/Interdisciplinary Studies, Other 2,636

51.3801 Registered Nursing/Registered Nurse 2,161

24.0103 Humanities/Humanistic Studies 1,863

11.0701 Computer Science 1,631

09.0101 Speech Communication and Rhetoric 1,522

30.0101 Biological and Physical Sciences 1,512

24.0101 Liberal Arts and Sciences/Liberal Studies 16,678 24 “P2P Regions.” California Competes, californiacompetes.org/p2p/regions?region=orange. 25 Lightcast, 2022, https://analyst.lightcast.io/. 0 100,000
200,000
300,000
400,000
500,000
600,000
Hispanic Asian White Other Black
2022 Educational Attainment by Race/Ethnicity
Less Than High School High School Diploma College Degree Source: LIGHTCAST, Labor Market Analytics, 2022, Hispanic group contains all combined races EXHIBIT 1
City Council 9 – 20 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 16 The employer need
in the Orange
County region is
based on job
postings,
employment data
analysis, and
educational
programs’ completions. Per the two-digit Standard Occupational Classification (SOC) code group, twenty-four occupations and 638 programs in the region of study may train for these occupations. Of these programs, there were 84,384,331 program participant completions in 2021 and 233,945 job openings. The job openings are up from the 2019 number of 196,852.

Identified in the table below are the occupations with the highest projected skills gap for Orange County between 2022 and 2027. This analysis indicates a continued need to identify strategies to fulfill training requirements in various high-gap occupational areas.

The research includes data based on the following:
• Occupations where the 2022 median hourly wage exceeds $16.00 an hour. • Openings greater than 10 (openings represent replacement jobs and BLS growth estimates).
• Entry-level education greater than a postsecondary nondegree award less than a bachelor’s degree.
• Top 20 occupations with skills gaps (skills gap is the difference between the projected openings and completions).
• The openings figure estimates the change in growth and replacement jobs (i.e., growth + replacements = openings). Growth captures the change in the total number of workers employed in an occupation. At the same time, replacement jobs are estimates of workers permanently leaving a career and needing to be replaced by new hires. A combination of both numbers indicates total openings.

EXHIBIT 1
City Council 9 – 21 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 17 Skills Gap by Occupation26
SOC Description 2022
Jobs
2027
Jobs
2022 -
2027
Change
2022 -
2027
Replace
ment
Jobs
2022 -
2027
Openings
Region
al
Compl
etions
(2021)
Skills
Gap
Median
Hourly
Earnings
Typical
Entry-Level
Education
43-3031
Bookkeeping,
Accounting, and
Auditing Clerks
18,815 18,891 76 11,625 11,751 858 10,893 $22.76 Some college, no degree
31-1131 Nursing Assistants 8,207 9,184 977 6,469 7,446 146 7,300 $18.61 Postsecondar
y nondegree
award
53-3032 Heavy and TractorTrailer Truck Drivers 10,813 11,312 499 6,473 6,972 0 6,972 $24.09 Postsecondar
y nondegree
award
31-9092 Medical Assistants 8,558 9,603 1,046 6,281 7,327 2,580 4,747 $18.51 Postsecondar
y nondegree
award
31-9091 Dental Assistants 5,095 5,697 601 3,852 4,453 215 4,238 $23.29 Postsecondar
y nondegree
award
25-9045
Teaching Assistants,
Except
Postsecondary
10,095 10,866 771 6,106 6,877 2,639 4,238 $17.99 Some college, no degree
29-2061
Licensed Practical
and Licensed
Vocational Nurses
6,782 7,463 682 2,872 3,553 560 2,993 $30.64
Postsecondar
y nondegree
award
49-3023
Automotive Service
Technicians and
Mechanics
5,247 5,454 207 2,618 2,825 278 2,547 $25.57
Postsecondar
y nondegree
award
39-5012
Hairdressers,
Hairstylists, and
Cosmetologists
2,383 3,353 970 1,959 2,929 492 2,437 $15.84
Postsecondar
y nondegree
award
39-5092 Manicurists and
Pedicurists 3,619 4,491 872 2,537 3,409 1,108 2,301 $14.00 Postsecondar
y nondegree
award
23-2011 Paralegals and
Legal Assistants 3,644 4,112 468 2,077 2,545 265 2,280 $27.09 Associate's degree 31-9094 Medical
Transcriptionists 2,143 2,187 44 1,813 1,859 50 1,809 $17.49 Postsecondar
y nondegree
award
31-9097 Phlebotomists 1,739 2,093 353 1,347 1,701 1 1,700 $24.07 Postsecondar
y nondegree
award
31-9011 Massage Therapists 1,519 1,923 404 1,151 1,554 64 1,490 $22.79 Postsecondar
y nondegree
award
49-9021
Heating, Air
Conditioning, and
Refrigeration
Mechanics and
Installers
3,396 3,664 268 1,659 1,927 443 1,484 $31.15
Postsecondar
y nondegree
award
29-1292 Dental Hygienists 3,328 3,710 381 1,142 1,523 117 1,406 $48.83 Associate's degree
43-4151 Order Clerks 2,187 2,063 (124) 1,254 1,254 26 1,228 $18.34 Some college, no degree
17-3011 Architectural and
Civil Drafters 2,247 2,304 57 1,299 1,356 147 1,209 $30.41 Associate's degree 49-2022
Telecommunications
Equipment Installers
and Repairers,
Except Line
Installers
1,750 1,679 (71) 975 975 34 941 $30.36
Postsecondar
y nondegree
award
17-3023
Electrical and
Electronic
Engineering
Technologists and
Technicians
1,852 1,832 (20) 987 987 82 905 $32.11 Associate's
degree
26 Lightcast, 2023, https://analyst.lightcast.io/.

EXHIBIT 1
City Council 9 – 22 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 18 The top three hard skills requested by employers in job postings between January 2020 to January 2021 were accounting, auditing, and customer relationship management. The following charts show the top specialized skills and the top common skills in relation to the frequency these skills appeared in job seeker profiles. Specialized skills are primarily required within a subset of occupations or equip one to perform a specific task. They are also known as technical skills or hard skills. Common Skills are prevalent across many different occupations and industries, including personal attributes and learned skills. They are also known as soft skills, human skills, and competencies. 0% 2% 4% 6% 8%
Nursing
Restaurant Operation
Warehousing
Merchandising
Selling Techniques
Invoicing
Auditing
Finance
Accounting
Marketing
Top Specialized Skills
Frequency in Job Postings Frequency in Profiles
Source: Lightcast 2023
0% 5% 10% 15% 20% 25% 30% 35% 40%
Detail Oriented
Problem Solving
Writing
Communications
Operations
Microsoft Excel
Leadership
Management
Customer Service
Sales
Top Common Skills
Frequency in Job Postings Frequency in Profiles
EXHIBIT 1
City Council 9 – 23 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 19 C. Analysis of Industries and Occupations with Existing and Emerging Demand The RPU analyzed location quotient, total jobs, and competitive effect data to identify industries and occupations with emerging demand. An analysis of location quotient data demonstrated which occupations and industries are specialized in the Orange County region (compared to the national average). The competitive effect indicates how much job change results from some distinct competitive advantage in the area. The competitive effect measures the job change that cannot be explained by national growth and industry mix. The difference in competitive effect points to regional-specific factors on the change in local employment numbers. Factors such as labor force training and education, skills, transportation, supply chains, aging demographics, and other regionally influenced factors may impact these industries’ and occupations’ competitiveness.

Using the 3-digit NAICS code, the
emerging industries identified had a
location quotient that increased
between 2017 and 2022 and had a
location quotient of less than 1.2. The
industry list was filtered to include
industries with a competitive effect
greater than 1 percent change in jobs
higher than 10% and more than 1,000 jobs. The following chart consists of a list of the top thirteen emerging industries in Orange County. This combined list of sectors accounted for 321,154 jobs in 2022. This group of industries is projected to grow to 490,109 jobs by 2027.

Industries with Emerging Demand
NAICS Description 2017
Jobs
2022
Jobs
2017 -
2022
Change
2017 -
2022 %
Change
Competitive
Effect
2017
Location
Quotient
2022
Location
Quotient
812 Personal and Laundry Services 14,962 17,548 2,586 17% 3,022 0.92 1.12 621 Ambulatory Health Care Services 83,749 96,902 13,153 16% 5,060 1.04 1.12 624 Social Assistance 41,158 49,209 8,051 20% 4,189 1.00 1.11 446 Health and Personal Care Stores 11,540 12,173 633 5% 1,104 0.98 1.09 611 Educational Services 26,794 32,837 6,044 23% 5,177 0.86 1.03 325 Chemical Manufacturing 7,937 8,844 908 11% 315 0.87 0.92 454 Nonstore Retailers 5,371 6,377 1,006 19% 405 0.84 0.91 623 Nursing and Residential Care Facilities 26,290 26,328 39 0% 2,887 0.71 0.81 814 Private Households 1,624 1,903 278 17% 690 0.51 0.81 312 Beverage and Tobacco Product
Manufacturing 1,862 2,359 497 27% 124 0.64 0.68
622 Hospitals 31,995 32,653 658 2% 516 0.58 0.59
902 State Government 25,468 25,822 354 1% 940 0.50 0.52 515 Broadcasting (except Internet) 962 1,006 44 5% 177 0.32 0.40 484 Truck Transportation 5,016 6,074 1,058 21% 776 0.31 0.36 481 Air Transportation 903 1,119 216 24% 237 0.17 0.21
Source: LIGHTCAST, 2023
Mature Growing
Location Quotients are
greater than 1.2 and
steadily decreasing
Location Quotients are
greater than 1.2 and
steadily increasing
Declining Emerging
Location Quotient is less
than 1.2 and steadily
decreasing
Location Quotient is less
than 1.2 and steadily
increasing
EXHIBIT 1
City Council 9 – 24 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 20 The following is a list of the occupations in Orange County with emerging demand. These occupations have a location quotient of less than 1.2 as of 2022. The location quotient has increased since 2017. The competitive effect is positive in these professions, demonstrating a high degree of regional-specific factors influencing job growth.

Occupations with Emerging Demand
SOC Description 2017 Jobs 2022
Jobs
2017 -
2022
Change
Median
Hourly
Earnings
Competiti
ve Effect
2017
Location
Quotient
2022
Location
Quotient
31-1100
Home Health and Personal Care Aides;
and Nursing Assistants, Orderlies, and
Psychiatric Aides
44,489 57,510 13,021 $14.15 9,736 0.88 1.08
53-6000 Other Transportation Workers 3,225 3,596 372 $14.92 895 0.77 1.04 21-1000 Counselors, Social Workers, and Other
Community and Social Service Specialists 21,472 23,687 2,215 $25.30 490 0.95 0.99 35-1000 Supervisors of Food Preparation and
Serving Workers 10,199 13,637 3,438 $18.32 1,340 0.87 0.98 27-4000 Media and Communication Equipment
Workers 2,082 2,246 164 $23.52 330 0.82 0.97
25-1000 Postsecondary Teachers 13,553 13,946 393 $45.12 686 0.91 0.97 25-9000 Other Educational Instruction and Library
Occupations 16,767 17,382 614 $18.86 371 0.92 0.95
19-3000 Social Scientists and Related Workers 2,432 2,557 124 $48.37 30 0.88 0.90 19-4000 Life, Physical, and Social Science
Technicians 3,377 3,676 300 $24.30 305 0.81 0.90
27-3000 Media and Communication Workers 5,562 5,623 61 $32.45 57 0.85 0.87 29-2000 Health Technologists and Technicians 23,974 27,571 3,597 $28.58 3,229 0.75 0.86 29-1000 Healthcare Diagnosing or Treating
Practitioners 46,324 52,960 6,637 $56.77 3,765 0.76 0.83 51-3000 Food Processing Workers 6,809 7,256 446 $16.09 282 0.76 0.80 29-9000 Other Healthcare Practitioners and
Technical Occupations 645 1,190 545 $30.02 106 0.71 0.79 39-2000 Animal Care and Service Workers 1,405 2,386 980 $14.46 543 0.59 0.78 47-4000 Other Construction and Related Workers 3,028 3,426 397 $28.07 239 0.67 0.73 25-2000
Preschool, Elementary, Middle,
Secondary, and Special Education
Teachers
28,039 28,871 832 $42.52 649 0.64 0.66
51-8000 Plant and System Operators 1,411 1,732 321 $38.72 380 0.42 0.54 39-4000 Funeral Service Workers 266 372 106 $17.12 109 0.37 0.53 33-1000 Supervisors of Protective Service
Workers 1,169 1,649 480 $57.20 217 0.38 0.44
45-4000 Forest, Conservation, and Logging
Workers 117 222 105 $16.42 102 0.20 0.38
53-2000 Air Transportation Workers 1,029 1,069 40 $49.13 44 0.33 0.35 53-5000 Water Transportation Workers 182 294 112 $33.93 115 0.20 0.33 45-1000 Supervisors of Farming, Fishing, and
Forestry Workers 107 150 43 $21.86 40 0.21 0.29
Source: LIGHTCAST, 2023
EXHIBIT 1
City Council 9 – 25 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 21 III. REGIONAL INDICATORS
The California Workforce Development Board has established “regional indicators” to assess coordination and measure progress within California’s 15 RPUs. The indicators serve to track processes and activities utilized by regions, providing a foundation for regional approaches that align with the needs of businesses in key sectors.

Regions must choose at least one of the following indicators:

Indicator A: The region has a process to communicate industry workforce needs to supply-side partners.

Indicator B: The region has policies supporting equity and strives to improve job quality.

Indicator C: The region has shared target populations of emphasis.

Indicator D: The region deploys shared/pooled resources to provide services, training, and education to meet the target population's needs.

A. Regional Indicator and Associated Outcomes and Metrics Members of the three WDBs that comprise the Orange RPU selected indicator A: The region has a process to communicate industry workforce needs to supply-side partners.

Indicator A encourages regions to examine supply and demand in key regional sectors and occupations. It requires workforce boards to understand employer demands such as skills, competencies, and the number of positions available in associated jobs. Indicator A asks regions to establish a benchmark around placement into these key jobs and work with supply-side partners to understand the demands and adjust their training services and recruitment as necessary. Supply-side partners refer to a range of potential regional workforce system partners, including community colleges, adult education providers, alternative training providers, human service agencies, and community-based organizations (CBOs). Aligning industry workforce needs and supply-side offerings is critical to understanding the opportunities in regional economies and overcoming the challenges associated with disconnected tracking and reporting systems between training and service providers and employers.

In accordance with guidelines provided in connection with Regional Plan Implementation grants administered by the State Board, regional outcomes and metrics have been established for Indicator A.

Outcomes
Outcomes and associated strategies and metrics have been established for the indicator.

Outcome 1: Region has developed benchmarks and measurements to track improvement in the number of individuals placed in jobs that align with the sectors and occupations emphasized in the Regional Plan. Target sectors include advanced manufacturing; EXHIBIT 1
City Council 9 – 26 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 22 healthcare; information and communications technology, including digital media; and retail, hospitality and tourism.

Strategies to be used to achieve this outcome will include, but not be limited to, the following:

1.a. Identify a minimum of two demand job classifications per sector to track

1.b. Capture and record jobs to be filled in identified job classifications

1.c. Broadcast jobs to be filled via a regional website

1.d. Track enrollments in training for demand job classifications as reported in CalJOBS

1.e. Track placements made by systems partners using CalJOBS

1.f. Track year-over-year increases in demand job placements for target sectors that are recorded in CalJOBS, adding placements from non-CalJOBS users over time.

Metrics for this outcome are:

1.a. Number of Job Classifications for Which Information will be Provided to SupplySide Partners: As a measure of effectiveness in identifying the workforce needs of industry, the number of jobs classifications or job titles that the region will track.

This will be no less than two demand job classifications per each of the region’s four target sectors.

1.b. Number of Demand Job Openings Captured: As a measure of effectiveness in identifying the workforce needs of industry, the number of jobs identified annually in the selected classifications.

1.c. Number of Demand Jobs Broadcast to Supply-Side Partners: As a measure of effectiveness in communicating demand to supply-side partners, the number of jobs broadcast to the partners.

1.d. Number of Individuals Trained for Demand Jobs as Reported in CalJOBS: As a measure of responsiveness to industry demand, the number of individuals enrolled in training to prepare them for demand jobs in target sectors. Initially, individuals tracked will be those reported in CalJOBS. Subsequently, trainees tracked through other data management system, will be included.

1.e Number of Individuals Placed in Target Sector Demand Job Classifications: As a measure of responsiveness to industry demand, the number of individuals placed in demand jobs in targeted sectors. Initially, individuals tracked will be those reported in CalJOBS. Subsequently, placed individuals tracked through other data management systems will be included.

For each of the foregoing measures, year over year increases will be tracked and reported.

EXHIBIT 1
City Council 9 – 27 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 23 Outcome 2: Region has developed benchmarks and methods to track workforce partner professional development training on priority sectors and industry workforce needs.

Strategies to be used to achieve this outcome will include, but not be limited to, the following:

2.a. Distribute EDD monthly labor market information to partners

2.b. Provide professional development training for workforce system partners and staff that addresses the needs of target sectors and its demand occupations

2.c. Develop regional training reports for each target sectors

2.d. Track training participation

2.e. Survey training effectiveness and perception of knowledge gains Metrics for this outcome are:

2.a. Percentage of Monthly Information “Blasts” Met: As a measure of efficiency in sharing information with supply-side stakeholders, 100% of planned monthly LMI and other sector-related information “blasts” to stakeholders will be achieved.

2.b. Number of Staff Development Training Sessions: As a measure of availability and access, the number of annual sessions during which staff can participate in training, whether in-person or through other modalities.

2.c. Number of Staff Development Training Participants: As a measure of impact on overall system capacity, the total number of WIOA-funded staff and workforce system partner representatives who annually participate in training.

2.d. Staff Development Training Participant Evaluation on “Ability to Apply Information Learned:” As a measure of customer satisfaction regarding training relevance and utility of information provided, 80% of participants will indicate that they can apply information learned to their work.

B. Impact of Indicators and Metrics on Service Delivery Local workforce system leaders chose to concentrate their joint efforts on communicating industry workforce needs to supply-side partners. This indicator holds significant promise to increase the effectiveness of the workforce system in supporting businesses that are driving economic growth and creating opportunities for prosperity among workers in the region. The emphasis on supporting training and recruitment of workers for demand occupations within priority industries will increase the effectiveness of local boards, their providers, and system partners in developing and implementing sector strategies. Effects of local service delivery will include:

EXHIBIT 1
City Council 9 – 28 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 24 Building Greater Understanding of the Region’s Priority Sectors: Frontline staff at America’s Job Centers of California (AJCCs), which are administered by the three local workforce development boards in Orange County, have a working understanding of the four regional target sectors, as do the staff of many of the local workforce system partners.

As a result of the training that will be provided in connection with the selected regional indicator, knowledge among staff regarding these key industries will not only be increased but also a greater shared understanding of the sectors among the system partners.

Development of Specific Sector Strategies: As measures established for the regional indicator require performance in terms of training and placement, the local boards will work together to develop specific strategies for recruiting new workers for each of the region’s priority sectors.

Increased Collaboration with Training Providers: To meet the workforce needs for specific occupations with the four target industries, local workforce boards and other partners will collaborate more closely with community colleges, adult schools, and training providers to ensure that courses are available to address businesses’ needs for trained employees and that curricula reflects industry input.

Improving the Framework for Information Sharing: As a core objective for the selected indicator is to communicate information from businesses to supply-side partners, structured protocols will be developed for sharing information through direct messaging and web-based postings. These efforts will provide a model for information sharing across the many organizations comprising Orange County’s workforce development delivery system.

Strengthening Messaging to Businesses: Adopting the selected regional indicator will require the local boards and system partners to develop strong, consistent messaging around the specific strategies and services available to businesses to meet their talent sourcing and training needs.

EXHIBIT 1
City Council 9 – 29 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 25 IV. FOSTERING DEMAND-DRIVEN SKILLS ATTAINMENT
The local workforce development boards in Orange County and their workforce system partners are committed to supporting businesses of all types and sizes. However, central to the overall workforce development strategy for the region is a focus on industries that drive the economy. In addition to labor market information published by the California Employment Development, industry-specific information and intelligence are gathered from representatives of businesses in priority sectors and help to inform the content and quality of local workforce programs and regional initiatives.

A. In-Demand Industry Sectors for the Region
The Orange RPU has identified four priority sectors (or industry clusters), each with a substantial current and potential impact on the regional economy based on labor market information. Advanced manufacturing; healthcare; information and communication technology, including digital media; and retail, hospitality and tourism not only drive the county’s economy but contribute to the growth and stability of other supporting businesses, industry sectors, and jobs that lead to economic self-sufficiency and advancement opportunities for Orange County residents.

NAICS industry codes included in each sector
Industry NAICS
Advanced Manufacturing
3241, 3251-54, 3259, 3271, 3279,
3311, 3313, 3315, 3331-3333,
3336, 3339, 3341-3346, 3351-3353
Healthcare 621,622,623
Information and Communications
Technology (ICT)/Digital Media 51, 5415
Retail, Hospitality, & Tourism 44, 45, 71,72
Advanced Manufacturing
The advanced manufacturing sector has 150,795 full and part-time jobs. The average earnings per job in 2022 was $118,252. There were 5,353 payrolled manufacturing businesses in the Orange County region in 2020. Manufacturing has been declining in the region; between 2017 and 2022, the industry declined by 4%. Nationally manufacturing increased by 1% for the same period. The expected change between 2022 to 2027 is -2%, with a loss of 3,423 jobs in the region. Automation, changes in skills required to perform new tasks, import competition, and a decrease in mobility are all reasons cited as contributions to the decline. Despite the declining jobs, advanced manufacturing is a priority in the Orange RPU due to the number of jobs and the impact on the local economy, given the sector’s total gross regional product (GRP) of $18.6 billion. The sector represents approximately 12.8% of the county’s total GRP. The advanced manufacturing sector has highly specialized and growing advanced manufacturing subsectors in the county. Medical equipment and supplies manufacturing had a concentration in the Orange County region that is five times higher than typical in EXHIBIT 1
City Council 9 – 30 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 26 other areas, with a location quotient of 5.72. Medical equipment and supplies manufacturing also increased jobs by 18% between 2017 and 2022, bringing the total employment in 2022 to 20,424. Other healthy and growing subsectors in the region are audio and video equipment manufacturing (LQ 4.86), apparel knitting mills (LQ 4.80), Cut and sew apparel manufacturing (LQ 4.10), manufacturing and reproducing magnetic and Optical Media (LQ 3.16), semiconductor and other electronic component manufacturing (LQ 3.11).

Manufacturing companies
will need a skilled worker
pipeline to fill new jobs and
replace retiring workers in
these specialized
subsectors. Both regionally
and nationally, the sector
has an aging workforce.

Workers 65 and older
represent 8% of the
workers, and 24.4% are
between 55 and 64.

Recruiting and retaining a
high-quality workforce for
new technology-driving positions will be necessary for manufacturing innovation. There are multiple opportunities at various entry points for individuals with a high school diploma, who have completed a certification program, or who have earned a 2- or 4-year college degree. The top companies posting jobs in the last 12 months were Boeing (3,340), B. Braun (1,818), Edwards Lifesciences (1,334), AbbVie (1,042), and Johnson & Johnson (890).

Healthcare
The healthcare sector has 155,883 full and part-time jobs. The average earnings per job in 2022 was $86,957. There were 11,939 payrolled business locations in the Orange County region in 2022. The industry growth between 2017 and 2022 was 10%, above the state’s growth percentage of 9%. The expected change between 2022 to 2027 is 13%, with a gain of 19,906 jobs. The sector contributes $18.5 billion in GRP, equivalent to 6.1% of the county’s total GRP. The healthcare sector comprises several related subsectors and supporting industries, including ambulatory healthcare services, hospitals, and nursing and residential facilities. The healthcare sector is growing and continues to be a stalwart industry throughout the pandemic. Healthcare is one of the few recession-proof industries, with registered nurses being the top-posted occupation between January 2020 to 202127. This job posting trend continued between 2021 and 2022. Given the rapidly aging Orange County population, the sector is expected to be an ongoing driver of economic activity, increasing the likelihood that many residents will require more healthcare and related support services. The top companies that posted 27 Lightcast, 2021, https://analyst.lightcast.io/.
571
6354
27467
30705
36905 36781
12011
0 5000
10000
15000
20000
25000
30000
35000
40000
14-18 19-24 25-34 35-44 45-54 55-64 65+
2022 Industry Sector by Age Breakdown
Source: LIGHTCAST, 2023
EXHIBIT 1
City Council 9 – 31 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 27 jobs in the last 12 months were Providence (4,757), PIH Health (1,886), Tenet Healthcare (1,459), CareIn Home (1,408), and Kindred Healthcare (1,394).

Information and Communications Technology and Digital Media The ICT/Digital Media (ICT) sector has 47,102 full and part-time jobs. Computer systems design services and software publishers have the highest positions in the county at 31,072 jobs combined. The average earnings for ICT jobs in 2022 were $165,034. There were 4,605 payrolled business locations in the Orange County region in 2022. The industry declined between 2017 and 2022 by 2%. Expected job growth between 2022 to 2027 is 3%, with a gain of 1,595 jobs. The sector contributes $17.2 billion in GRP, 5.6% of the county’s total GRP. The technology sector accounts for a significant portion of Orange County’s economic activity as economies, jobs, and personal lives become more digital and automated. The ICT sector develops innovative services and products that impact all regional industries. ICT applications can be seen in manufacturing with computer simulation and in the healthcare industry with the rise of telemedicine and telehealth. Remote work surged during the pandemic and is an enduring attribute of today’s employment landscape. The ICT sector is one industry that has embraced remote work and hybrid work. The ICT industry is one of the industries where training and upskilling existing staff will be crucial in ensuring regional competitiveness. The top companies that posted jobs in the last 12 months were Disney (1,375), Verizon Communications (1,122), Anduril Industries (686), Spectrum (623), and Ingram Micro (610).

Retail, Hospitality and Tourism
The retail, hospitality, and tourism sector has 352,015 full and part-time jobs, making it the largest targeted industry in the region. The average earnings per job were $46,455 in 2022. There were 19,865 payrolled establishments in the Orange County region in 2022. The number of jobs declined by 4% between 2017 and 2022. Jobs in the state and the nation declined by 5% during the same period. The expected change between 2017 to 2022 is a growth of 9% and 32,678 job gains. The sector contributes $32.9 billion in GRP, 11% of the county’s total. According to the Orange County Visitors Association, Orange County welcomed 50.2 million visitors who spent 413 billion dollars in 2019.

Tourism is part of Orange County’s DNA and was hit the hardest by the pandemic’s effects. The sector is diverse and includes hotels, restaurants, entertainment venues, cultural attractions, sports parks, theme parks, food establishments, retail stores, and other venues. The highest numbers of jobs in 2022 were in full-service restaurants (60,044), limited-service restaurants (52,289), and amusement and theme parks (25,575). The top companies that posted jobs in the last 12 months were Marriot International (4,593), Amazon (3,020), Great Wolf Resorts (1,655), Disneyland Resort (1,621), and Starbucks (1,616).

Often the jobs within these industries are characterized by low wages. The industry has historically offered entry-level employment opportunities to new immigrants and candidates with a high school diploma. While many jobs exist in lower-paid, entry-level EXHIBIT 1
City Council 9 – 32 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 28 classifications, there are many opportunities to secure positions offering higher compensation. The challenge is ensuring those in entry-level positions obtain additional job-specific and English-language skills necessary to qualify for promotional opportunities. Career pathway programs and incumbent worker training are workforce development strategies that can play an essential role in lifting people from lower-wage jobs.

B. Sector Strategies and Other Industry-Focused Initiatives Orange RPU started the region’s sector partnership work under a “Slingshot” grant funded by the California Workforce Development Board. The RPU engaged a consultant who is a national leader in the design and practice of next-generation industry engagement. This early work guided the launch of industry sector partnerships (ISPs) in the RPU’s four priority sectors using the “Next Gen Sector Partnership” model. The first industry collaboration meetings occurred just before the COVID-19 pandemic. These meetings represented a starting point for partnerships to deepen and grow over the next several years. The RPU had participation from core partners, employers, chambers, and unions.

While this work stalled over the pandemic, the Orange RPU Regional Organizer will continue to lead the sector partnership work, which has three-fold goals:

1. Conduct regular sector partnership meetings with employers to identify common industry priorities, address shared vitality issues, and understand hiring and training needs to create a pipeline of qualified candidates in growth industries and other promising sectors.

2. Develop workforce strategies in collaboration with adult education, community colleges, and other partners, including mapping career pathways, work-based learning, and apprenticeship programs.

3. Unify and coordinate business engagement efforts by all partners to minimize duplication of efforts, minimize employer fatigue, and promote systemic change that benefits each industry, its workers, and the community.

To address upward income mobility and improve economic self-sufficiency, continuous and authentic industry leadership and shifts in workforce strategies are needed to transition low-skill job seekers into middle-skill careers and address underemployment in the region. The pandemic has slowed the industry sector’s work progress. The RPU remains committed to re-engaging employers and partners and building upon the industry sector work that was begun before the outbreak of COVID-19.

The RPU will work in close collaboration with the community college system through the Orange County Regional Consortium (OCRC) to convene industry leaders. OCRC provides a regional framework to communicate, coordinate, collaborate, promote, and plan career and technical education in concert with workforce and economic development in the Orange County region. OCRC represents nine community colleges and one standalone continuing education (noncredit) center within four community college districts. The EXHIBIT 1
City Council 9 – 33 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 29 consortium has identified priority sectors, which are summarized below. Four of the community college sectors align with the Orange RPU priority industries. The RPU adjusted industry titles to match those of the community colleges to ensure that there is no confusion on the region’s priority industries.

Priority Sectors for the OC Region
Sectors
Community
Colleges
Orange
RPU
Advanced Manufacturing  
Advanced Transportation & Logistics 
Life Sciences/Biotech 
Business and Entrepreneurship 
Energy, Construction, and Utilities 
Healthcare  
ICT/Digital Media  
Retail, Hospitality, & Tourism  
In partnership with OCRC, the Orange RPU will expand sector partnerships by working with Orange County chambers of commerce and other community and educational partners to identify additional core team members who will support strengthening industry sector partnerships. Orange County has many state, county, and civic organizations; four community college districts; twenty-seven K-12 school districts; California State University and the University of California systems; and numerous other public and private stakeholders vested in the workforce and economic development. Representing such a large number of stakeholders requires a great deal of commitment from the core group, which is committed to building deep, sustainable relationships that result in career pathways and a steady pipeline of workers within the identified priority sectors.

This core team will be responsible for developing and carrying out an action plan that provides a strategic and coordinated effort to unify business engagement efforts, identify and engage industry champions and other businesses, and support partner organizations. The core team will relaunch sector meetings to gather information about the challenges and opportunities. After the initial meetings, employers will be invited to regular meetings to set goals to address their needs and take action with the partners on those goals. Meetings and agendas will be business-driven, and actions taken will create a pipeline of qualified candidates who meet industry needs for in-demand occupations.

Managing sector partnerships will require a shared focus on the following:
• Training and skills development to bring new employees into specific industries and occupations
• Business development
• Incumbent worker training
• Labor market and industry research
EXHIBIT 1
City Council 9 – 34 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 30 • Restructuring work environments to improve recruitment, hiring, training, compensation, and retention strategies.
• Integrating two or more of these strategies in a multifaceted approach C. Strategies to Communicate with Regional Employers
Most business contacts are made at the local level by the WDBs and the AJCCs.

However, when the boards work with the same businesses across their jurisdictions, they make every effort to collaborate and coordinate messaging and service delivery. Such efforts have been common in rapid response, layoff aversion activities, and businesses establishing new operations in one or more Orange County communities.

To promote coordinated and cohesive messaging, the local boards have collaborated on developing a brand, Orange Workforce Alliance (OWA), to represent the RPU and regional interests and initiatives, including messaging to businesses and industry. A regional website (https://orangeworkforcealliance.com) provides an overview of services available from any of the three local boards and their partners for business customers, including human resources support, training and skills upgrading, labor market information, layoff assistance, outplacement assistance, and financial services. Launched in 2023, the OWA brand, its website, and collateral materials represent an effective strategy for communicating with employers throughout the region.

EXHIBIT 1
City Council 9 – 35 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 31 V. ENABLING UPWARD MOBILITY FOR ALL CALIFORNIANS
The local boards of the Orange RPU support the State Plan’s focus on ensuring that workforce and education programs are accessible for all Californians, especially populations that experience barriers to employment. The region is committed to promoting access for everyone to training and services needed to prepare for careers that offer opportunities for long-term economic self-sufficiency and economic security.

A. Working with Businesses that Provide Quality Jobs
The Orange RPU is committed to identifying strategies that improve the workforce system, ensuring that it enables economic growth and shared prosperity for both businesses and workers. The California Workforce Development Board defines quality jobs as employment that provide family-sustaining wages, health benefits, a pension, worker advancement opportunities, and collective worker input and jobs that are stable, predictable, safe, and free of discrimination. The local boards are attuned to the pandemic’s increased impact on residents in lower-paying jobs and the increasing national attention given to those in such jobs who face inequality. The RPU and regional partners will continue to work to move unemployed and underemployed individuals, especially those with barriers to employment, into higher-paying jobs with benefits.

Before the pandemic, Orange County’s unemployment numbers were historically low.

Unfortunately, low unemployment did not mean all Orange County residents were thriving. Based on one adult with no children, the MIT 2023 living wage standard in Orange County is $23.66 an hour. Low-wage workers have suffered the most during the pandemic-induced recession. In 2020, 741,966 of the 1,805,612 jobs (42%) had an average wage of less than $20.00 an hour. Most of these jobs (511,322) were held by minority workers, with Hispanics holding the largest share of these lower-wage jobs (46%). Massive job losses were concentrated among lower-wage retail, hospitality and tourism, and food service workers. Although we have recovered these jobs, there are large numbers employed in areas such as food preparation and serving related occupations (143,899) that make an average of $16.34 an hour. Healthcare Support Occupations has 82,251 jobs as of 2022, with an average wage of $17.40. The boards are committed to identifying career ladders and lattices, allowing upward mobility.

The region’s targeted industry sectors show potential for family-sustaining wages but are not immune to offering lower wages. Such jobs comprise a substantial portion of the Orange County regional economy, given its large retail, hospitality, and tourism footprint.

While some entry-level occupations in the industry have well-articulated career pathways to a job with self-sustaining wages, each profession provides foundational skills that will better qualify individuals for enhanced employment and income opportunities. Aspen Institute’s work on sectoral workforce development strategies identified two fundamental approaches to helping people connect to better employment:
1) removing barriers to good jobs for low-income people; and EXHIBIT 1
City Council 9 – 36 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 32 2) improving the quality of jobs in key sectors where many low-income people work28.

The RPU and regional partners understand the importance of developing strategies that accomplish both. Through industry sector work, the RPU is committed to ensuring that workforce development services and job training provide a bridge to greater financial stability.

The Orange RPU understands its role in investing in and advocating for quality jobs. The RPU will develop a standard tool for determining job quality to assess what industries, companies, and jobs to target. The region will prioritize working with employers that provide quality jobs and those interested in improving their job quality and being part of moving low-wage workers into better-paying positions. Regional partners are committed to developing protocols that focus on engaging businesses that provide quality jobs or have an interest in improving job quality. The RPU will work with business leaders to ask questions and begin conversations around job quality, helping businesses understand how workforce investments can improve their competitive advantage.

Through sector work, the RPU will work with businesses and regional partners to identify entry-level positions and develop career pathways with multiple entry and exit points, ensuring individuals understand their path to self-sufficiency. The region will review highroad employment practices and strategies to design better jobs. The RPU will also target on-the-job and incumbent worker training funding toward quality jobs that provide upward mobility.

B. Shared Target Populations and Targeted Service Strategies The one-stop delivery system provides the local boards and partners the framework to continue and advance discussions of how workforce programs can be more effective, efficient, and aligned. The RPU and partner organizations have identified and are currently addressing the needs of shared target populations, including English language learners, justice-involved individuals, individuals with disabilities, veterans, and disconnected and foster youth. During the development of the original PY 21-24 Regional Plan and its 2023 modification, a recurring theme in planning meetings was that organizations seeking to serve these populations would benefit from stronger linkages with other organizations doing the same or complementary work.

The RPU has regularly scheduled meetings to address service delivery and performance for these targeted groups. During the regional planning meetings, the local boards and partners shared promising practices to address English language learners’ specific challenges. The group discussed two distinct subcategories, those with low skills and education and those with higher skills and educational degrees from other countries. The RPU and partners committed to reconvene to discuss how we can collectively improve 28 Maureen Conway et al., Sectoral Strategies for Low-Income Workers: Lessons from the Field (Washington, DC: Aspen Institute, October 1, 2007), https://www.aspeninstitute.org/publications/sectoral-strategies-low-income-workers-lessons-field/ EXHIBIT 1
City Council 9 – 37 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 33 service delivery to English language learners and determine if other populations warrant different workforce development strategies to serve them more effectively.

C. Equity and Ensuring Equal Access to Training and Services The RPU and regional partners will ensure historically unserved and underserved populations have equal access to regional sector career pathways and other services and support through sector partnerships. Through sector partnership work, the RPU and partners will have the opportunity to work with employers to create career pathways that help mitigate the many challenges vulnerable populations face in completing educational goals and moving into employment with family-sustaining wages. Workforce development programs and supports should not be designed as a one-size-fits-all solution. The populations we serve are diverse, and program designs should reflect this diversity if we are going to close the skills gap and combat economic inequality. Career pathways are also a service-delivery model that can close achievement gaps and advance racial equity by helping individuals build skills over time. Career pathways are a long-term approach to serving individuals with limited basic skills or other employment barriers that the local boards are committed to expanding.

Sector partnership work will also provide an opportunity for the RPU to address issues such as degree inflation that tend to exclude minorities from jobs during the hiring process. According to Manjari Raman, director of Harvard Business School’s project on Managing the Future of Work, degree inflation refers to jobs that historically required more than a high school diploma or less than a college degree but now require a college degree29. Explicitly requiring degrees for positions instead of the jobs’ skills exacerbates the effect of racial disparities in educational achievement and eliminates workers who may have acquired the skills in other ways. Also, through sector partnership work, other hiring practices that disproportionately affect minorities, such as automatically excluding potential employees using criminal background checks and credit checks, can be discussed.

Another strategy that the sector partnerships will address is creating work-based learning programs and pre-apprenticeship programs. Pre-apprenticeships can be valuable for people of color who are historically underrepresented in apprenticeships. Work-based learning programs can provide vital formal access to employers that the population may not have had when relying on their existing professional and social networks.

Partners supporting the development of the PY 21-24 Plan and its biennial update consistently remarked on access issues, including how some lack access to nearby AJCC services and the lack of digital literacy and access to broadband services. The pandemic has exacerbated these issues. Partners describe how transportation and childcare needs, and a general lack of understanding of the services available, prevent a large percentage of those most in need of assistance from accessing them. The local boards recognize 29 Morgan, Kate. “'Degree Inflation': How the Four-Year Degree Became Required.” BBC Worklife, BBC, 28 Jan. 2021, www.bbc.com/worklife/article/20210126-degree-inflation-how-the-four-year-degree-becamerequired#:~:text=Cornett%20is%20a%20victim%20of,Managing%20the%20Future%20of%20Work.

EXHIBIT 1
City Council 9 – 38 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 34 that specific populations require more outreach and unique methods and strategies for locating, attracting, and retaining their participation in workforce programs. The Orange County WDB purchased a mobile unit equipped with 12 computers and a monitor outside for presentations. The mobile unit is accessible by wheelchair by using a lift. The unit serves as a one-stop mobile center for the Orange County community. The mobile unit is deployed to low-income communities, areas that are far from a comprehensive AJCC, and partner locations to increase access and awareness of services.

The boards and partner agencies will also explore additional referral agreements and processes with other organizations that can be engaged as partners to serve targeted people in their communities. Disadvantaged and vulnerable populations need increased support services, multiple service strategies, co-enrollment in additional programs, referrals to community service providers, and a team approach to succeed in the labor market.

Participants must have broadband internet access to complete enrollment applications, financial aid applications, and work requirements. Job openings are now almost exclusively accessible via the internet. Many job search websites are not fully accessible to mobile phone users. The digital divide between people with broadband internet access and those without access or cell phone-only access is also a huge barrier to accessing post-secondary education and entering the workforce. The RPU and regional partners have discussed the need for partners to address the digital divide collectively and are working with regional and statewide initiatives to address the issue.

EXHIBIT 1
City Council 9 – 39 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 35 VI. ALIGNING, COORDINATING, AND INTEGRATING PROGRAMS

AND SERVICES
Orange County’s three local boards have a long history of collaborating on sector strategies, and initiatives serving key groups and designing, developing, operating, and administrating successful workforce programs. WIOA’s focus on regional approaches and establishing RPUs in California have strengthened collaboration among the local boards.

The boards within the region consistently strive to use limited resources as effectively as possible. The following is an overview of current and potential future efforts to achieve regional coordination and alignment of services, systems, and strategies.

A. Regional Service Strategies
The three local boards have executed a Memorandum of Understanding (MOU) to solidify their joint commitment to collaboration on workforce and economic development within the Orange County region through system alignment, integration of service delivery, and leveraging resources. Regional objectives include:
• Improve and enhance customer experience by ensuring staff receives ongoing professional development training and cross-training
• Meet the needs of employers by implementing and scaling career pathways • Improve the quality of workforce services by strengthening alignment and partner connections
• Align investments in targeted populations and industry sectors • Expand opportunities for businesses and job seekers to engage in integrated learning and work experience activities
• Share resources and braid funding to support regional goals and objectives.

One of the clearest examples of the strong work relationship among the boards is its collaboration on not just this Regional Plan but on a Unified Local Plan. With the state’s establishment of RPUs under WIOA, Orange County’s local boards became responsible for developing a four-year Regional Plan as a companion to their WIOA-required Local Plans. However, given WIOA’s emphasis on regional collaboration, the Anaheim, Santa Ana, and Orange County WDBs elected to develop a Unified Local Plan to represent all three local workforce development areas.

As described, to create greater recognition for their regional work, in 2023, the three boards that comprise the RPU adopted Orange Workforce Alliance (OWA) as a brand.

The brand is used to promote regional partners, targeted training, labor market data, support for businesses, and workforce services for adult job seekers and youth. The primary mission of the OWA is to support the alignment of resources between the workforce, education, and industry to meet regional workforce needs.

EXHIBIT 1
City Council 9 – 40 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 36 B. Regional Administrative Cost Arrangements
The three boards in the Orange County RPU collaborate on multiple projects, with one board or another acting as the fiscal agent for each project. At present, the RPU does not have any overarching cost arrangements, nor do the local boards intend to pool funds for administrative costs.

The boards represented by the Orange RPU are determined to better align workforce services with economic development, educational institutions, and business. The boards will consider administrative cost arrangements if they determine that they will enable the RPU to accomplish the region's objectives more efficiently.

VII. PRIORITY CONSIDERATIONS FOR PROGRAM YEARS 2021-24
During the development of the original PY 21-24 Orange RPU Regional Plan, the local boards, supported by the Regional Organizer, held a series of discussions with workforce system partners, stakeholders, and community members regarding key issues affecting workforce development programs and activities throughout Orange County and that touched on central content areas of both the Regional Plan and the three boards’ Local Plan. Input resulting from planning sessions was embedded throughout the original PY 21-24 Regional Plan narrative. Since implementing the Plan, these recommendations have been the ongoing focus of exploration, development, and/or enhancement.

As part of preparing the biennial update to the Plan, regional leaders again engaged system partners and others in dialog regarding major workforce issues, particularly those reflecting the widespread effects of the pandemic. These discussions resulted in recommendations for various possible strategic initiatives and priorities as summarized below.

System Approaches and Protocols
The following stakeholder suggestions deal largely with matters involving the overall workforce development delivery system in Orange County and approaches that could be addressed regionally and by one or more of the three local boards.

1. Investment in skills and information for middle school and younger students is critical in developing a pipeline of youth who are knowledgeable about and ready to participate in career pathway programs.

2. Work-based learning programs, such as apprenticeships, can be used to address job applicants’ skills gaps. While businesses want experienced candidates, many applicants lack the experienced requested. A viable solution to this problem lies in employers providing the needed experience through a structured approach to skills training and skills acquisition.

EXHIBIT 1
City Council 9 – 41 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 37 3. The workforce system should provide support to businesses of all types and sizes in becoming trainers. Many businesses could benefit from providing work-based instruction to new employees but need assistance in implementing effective models.

4. The workforce system partners should more closely collaborate with the K-12 system to increase the availability of workforce preparation information and activities for students.

5. Schools, parents, and the workforce development system can better inform young people about the full range of career pathways, including jobs that don’t require a college degree.

Business-Focused Strategies
Many of the stakeholders providing input during the development of the 2023 Biennial Modification to the Regional Plan addressed matters regarding the various ways in which the workforce system provides support to businesses and how the pandemic has affected the needs of businesses with regard to training, hiring, and retaining new and existing workers.

6. Workforce system partners should take a more consultative approach in working with businesses, providing advisement and recommending strategies drawn from the partners’ broad experience working with both demand and supply side customers.

7. Businesses need support not just with recruitment but with job retention.

Businesses are experiencing tremendous costs from newly hired workers leaving companies within the first weeks or months of employment. Workforce system partners should provide companies with tools, strategies, and recommendations for messaging.

8. While many older workers have stayed in or returned to the workforce due to the pandemic, the impending threat of a “silver tsunami” is affecting more industries and job classifications. The regional workforce system should assess the worker replacement needs of their business customers and develop industry-specific strategies to recruit and prepare a pipeline of new workers.

9. Nearly all major industries and occupations are facing worker shortages.

Businesses need support from the full range of workforce system partners in addressing these shortages and developing short- and long-range strategies.

10. The use of technology by businesses accelerated during the pandemic, but training for workers in technology skills has not consistently kept pace. The system EXHIBIT 1
City Council 9 – 42 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 38 partners should develop and implement a comprehensive strategy to address technical skills training needed by those seeking and applying for jobs.

11. Workforce system partners should assess whether they are sufficiently preparing workers for future jobs in addition to today’s jobs.

12. Business services staff and organizations that support businesses in sourcing talent should assist businesses in evaluating and reassessing the requirements for jobs. For instance, is a college degree needed for many jobs requiring one? Is five years’ experience an absolute requirement?

13. The workforce system’s business services staff should assist companies, especially small employers, develop job descriptions. Accurate job descriptions will support businesses in more effectively messaging potential candidates about positions they want to fill.

14. By engaging more actively with all types of chambers of commerce, the workforce system can get better access to business intelligence from small businesses with unique needs.

15. Remote work and work-from-home models offer a good example of the changing workplace. The partners should identify skills needed for the new workplace and develop programs to teach these skills.

Job Seeker- and Worker-Focused Strategies
Several recommendations were received from stakeholders regarding services for job seekers and currently employed individuals.

16. Businesses are managing multi-generational workforces. Younger generations of workers have different values than their older counterparts and prioritize different aspects of their work lives. Workforce strategies should recognize and addresses generational differences in system customers.

17. While each generation of workers is entitled to its values and choices on the path within the labor market, workforce system partners should provide customers with information about the effects of frequent changes in employment on their career goals.

18. Many older workers remaining in or returning to the workforce need assistance upgrading existing skills and building new ones.

19. Workers need strong “social literacy” skills, as an essential requirement of work is building and maintaining effective relationships.

EXHIBIT 1
City Council 9 – 43 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 39 20. Workforce system partners should assist job seekers throughout their career exploration process in evaluating the “emotional quotient” of various types of work, as individuals who choose careers that align with their interests, aptitudes, and work-related values are much more likely to remain in these careers.

21. As workers’ attitudes have changed, so too have students’ values and priorities.

Some students prefer in-person instruction, while others favor online courses.

Education and training providers should make content available through various modalities to reach all individuals who need to develop their skills.

While the foregoing input remains relevant, leadership from the three local boards in Orange County has noted that many of the matters raised by stakeholders and community members are currently being addressed locally and regionally through various projects and initiatives. Throughout the remaining period of the PY 21-24 planning cycle, local boards, the Regional Organizer, and workforce system partners will continue to examine opportunities to address these priorities.

EXHIBIT 1
City Council 9 – 44 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 40 VIII. APPENDICES
Attachment 1: Stakeholder and Community Engagement Summary Attachment 2: Public Comments Received that Disagree with the 2023 Biennial Modification to the Program Year 2021-24 Regional Plan
Attachment 3: Signature Page
EXHIBIT 1
City Council 9 – 45 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 41 Attachment 1
A. Stakeholder and Community Engagement Summary (Attachment 1) To facilitate the engagement of stakeholders in planning for regional workforce development collaboration and the development of the PY 2021-2024 Regional Plan, the three local boards in Orange County hosted a series of discussions outlined in the table below.

Recommendations and other input resulting from these discussions is embedded within the content of the Orange RPU Regional Plan along with that of the local boards’ PY 21- 24 Unified Local Plan.

Mode of Outreach Target of Outreach Summary of
Attendance
Comments
Email, phone, social
media, local board
websites,
Eventbrite
WIOA Core
Program
Partners
76 individuals
registered and 43
attended
The meeting was well
attended by
representatives from
several core partner
agencies. We had
representatives from
the local boards,
adult schools,
community colleges,
conservation corps,
job corps,
community-based
organizations, and
housing authorities,
EDD.

Email, phone, social
media, local board
websites,
Eventbrite
CalFresh
Employment
and Training Partners
38 individuals
registered and 27
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations,
Orange County
Social Services
Agency.

Email, phone, social
media, local board
websites,
Eventbrite
Child Support
Services Partners
27 individuals
registered and 18
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
EXHIBIT 1
City Council 9 – 46 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 42 Mode of Outreach Target of Outreach Summary of
Attendance
Comments
community-based
organizations,
Orange County
Social Services
Agency.

Email, phone, social
media, local board
websites,
Eventbrite
Competitive
Integrated
Employment Partners
34 individuals
registered and 28
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
ROP programs,
Goodwill Industry,
City of Irvine
Disabilities, and other
community-based
organizations.

Email, phone, social
media, local board
websites,
Eventbrite
English
Language
Learners Partners
22 individuals
registered and 19
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations, adult
schools.

Email, phone, social
media, local board
websites,
Eventbrite
Re-Entry
Services Partners
40 individuals
registered and 24
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations, State
Parole, Orange
County Sheriff,
Mental Health
Services
Email, social media,
local board
websites,
Eventbrite
Community at large,
Businesses,
Chambers, Core
Partners
66 individuals
registered and 33
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations, adult
schools, Veteran
Serving
Organizations, EDD,
EXHIBIT 1
City Council 9 – 47 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 43 Mode of Outreach Target of Outreach Summary of
Attendance
Comments
State of California
WSB.

During the development of the biennial update to the Regional Plan, the local boards hosted a community and stakeholder forum on “The Role of the Workforce System in Economic Recovery.” This forum was held in-person on November 17, 2022.

Mode of Outreach Target of Outreach Summary of
Attendance
Comments
Email, phone, social
media, local board
websites,
Eventbrite
WIOA Core Program
Partners, Community
Members,
Community Based
Organizations,
Education Partners
56 registered and 39
attended
The meeting was
attended by
representatives from
several core partner
agencies. We had
representatives from
the local boards,
adult schools,
community colleges,
community-based
organizations, and
EDD.

EXHIBIT 1
City Council 9 – 48 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 44 Attachment 2
B. Public Comments Received that Disagree with the 2023 Biennial Modification to the PY 21-24 Regional Plan (Attachment 2)
The Orange Regional Plan was posted online for a 30-day public comment period.

There were no public comments received that disagreed with the regional plan.

EXHIBIT 1
City Council 9 – 49 5/2/2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 45 Attachment 3
C. SIGNATURE PAGE (Attachment 3)

ORANGE PLANNING UNIT REGIONAL PLAN
The 2023 Regional Plan Modification represents the Orange Regional Planning Unit efforts to maximize and coordinate resources available under Title I of the Workforce Innovation and Opportunity Act. This Regional Plan Modification is submitted for the period July 1, 2023, through June 30, 2025, in accordance with the provisions of WIOA.

LOCAL BOARD CHAIRS LOCAL ELECTED OFFICIALS

ORANGE COUNTY WORKFORCE DEVELOPMENT BOARD COUNTY OF ORANGE BOARD OF SUPERVISORS Signature Signature
Teri Hollingsworth Donald Wagner
Name Name
Chair, Orange County Workforce Development
Board Chair, Orange County Board of Supervisors
Title Title
Date Date

ANAHEIM WORKFORCE DEVELOPMENT BOARD CITY OF ANAHEIM COUNCIL Signature Signature
Joe Paquette Ashleigh Aitken
Name Name
Chair, Anaheim Workforce Development Board Mayor, City of Anaheim Title Title
Date Date

SANTA ANA WORKFORCE DEVELOPMENT BOARD

CITY OF SANTA ANA COUNCIL
Signature Signature
Daisy Campos Valerie Amezcua
Name Name
Chair, Santa Ana Workforce Development Board Mayor, City of Santa Ana Title Title
Date Date
EXHIBIT 1
City Council 9 – 50 5/2/2023
2023 BIENNIAL MODIFICATION TO THE

UNIFIED LOCAL PLAN
Program Year 2021-2024
EXHIBIT 2
City Council 9 – 51 5/2/2023
Anaheim Workforce Development Board
Contact: Marco Lucero
Phone: (714) 765-4341
Email: [email protected]
Orange County Workforce Development Board
Contact: Carma Lacy
Phone: (714) 480-6420
Email: [email protected]
Santa Ana Workforce Development Board
Contact: Deborah Sanchez
Phone: (714) 565-2621
Email: [email protected]
EXHIBIT 2
City Council 9 – 52 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan

TABLE OF CONTENTS
I. INTRODUCTION AND OVERVIEW..........................................................................................................1 II. WIOA CORE AND REQUIRED PARTNER COORDINATION.......................................................................3 A. Coordination with AJCC Partners and WIOA Memorandum of Understanding...............................3 B. Partners' Efforts to Collaborate on Co-Enrollment and Case Management.....................................8 C. One-Stop System's Use of Technology and Other Remote Strategies ...........................................10 D. Coordination of Workforce Activities and Support Services ..........................................................11 E. Physical and Programmatic Accessibility for Individuals with Disabilities......................................11 III. STATE STRATEGIC PARTNER COORDINATION.................................................................................12 A. Coordination with County Human Services Agency and Other Local Partners That Serve Individuals Accessing CalFresh Employment and Training Services.......................................................12 B. Coordination with Local Child Support Agency and Other Local Partners Serving Individuals That Are Non-Custodial Parents......................................................................................................................13 C. Coordination with Local Partnership Agreement Partners Established in Alignment with the Competitive Integrated Employment Blueprint and Other Local Partners That Serve Individuals with Developmental and Intellectual Disabilities ...........................................................................................14 D. Coordination with Community-Based Organizations and Other Local Partners That Serve Individuals Who Are English Language Learners, Foreign Born, and/or Refugees.................................16 IV. WIOA TITLE I COORDINATION.........................................................................................................17 A. Staff Training and Professional Development to Increase Digital Technology Skills......................17 B. Frontline Staff Training and Professional Development to Increase Cultural Competency and Effectiveness in Working with Individuals and Groups that Have Been Exposed to Trauma.................17 C. Coordination of Rapid Response and Layoff Aversion Activities....................................................18 D. Services and Activities Available under WIOA Title I Adult and Dislocated Worker Programs......19 E. Services and Activities Available under WIOA Title I Youth Program.............................................23 F. Entity Responsible for Disbursal of Grant Funds and the Competitive Process Used to Award Contracts for WIOA Title I Activities .......................................................................................................25 G. How the Local Board Fulfills the Duties of the AJCC Operator and/or the Career Services Provider or Selection of AJCC Operators and Career Services Providers..............................................................25 EXHIBIT 2
City Council 9 – 53 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan V. STAKEHOLDER INPUT AND CONSIDERATIONS FOR PY 21 - 24 ...............................................................26 VI. APPENDICES ....................................................................................................................................28 A. Stakeholder and Community Engagement Summary (Attachment 1) ...........................................29 B. Public Comments Received that Disagree with the 2023 Biennial Modification to the PY 21-24 Local Plan (Attachment 2).......................................................................................................................32 C. SIGNATURE PAGE (Attachment 3) ......................................................................................................33 EXHIBIT 2
City Council 9 – 54 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 1 I. INTRODUCTION AND OVERVIEW
In accordance with the requirements of the Workforce Innovation and Opportunity Act (WIOA) of 2014 and guidance published by the California Workforce Development Board (CWDB) and Employment Development Department (EDD), the three local workforce development boards (WDBs) in Orange County developed a four-year Local Plan covering program years (PYs) 2021-2024. Following approval by state officials representing the Governor, the Plan became effective from July 1, 2021, through June 30, 2025. This PY 21-24 Local Plan update constitutes its WIOA-required biennial modification. Following the approval of this modification by state representatives, it will become the official, active version of the Plan beginning on July 1, 2023, and remain in effect through June 30, 2025.

Local Workforce Development Boards in Orange County and the Unified Local Plan Orange County is served by two municipal boards, Anaheim WDB, and Santa Ana WDB, representing the most populated cities with more than 300,000 residents. The Orange County WDB serves the balance of Orange County, which includes 32 incorporated cities and more than two dozen unincorporated areas. Home to more than 3 million people, Orange County is the third most populous county in California and the sixth most populous in the nation. Businesses within the county's vibrant and diverse economy employ more than 1.5 million workers.

In 2015, as WIOA was implemented as the core program of the nation's workforce development system, new opportunities arose for collaboration among local boards within labor market regions defined by the Governor. Orange County was designated as one such region in California, officially known as the Orange Regional Planning Unit (RPU).

With this designation, the three local boards in Orange County became responsible for developing a four-year Regional Plan as a companion to their WIOA-required Local Plans.

However, given WIOA's emphasis on regional collaboration, the Anaheim, Santa Ana, and Orange County WDBs elected to develop a Unfiied Local Plan representing all three local workforce development areas. This effort by the three boards has been recognized as one of California's best examples of regional workforce development collaboration.

Development of the Local Plan and the Biennial Modification Development of the original PY 21-24 Local Plan resulted from three local boards' significant engagement with organizations and individuals throughout Orange County that guide, contribute to, and benefit from workforce system services. A series of partner and stakeholder discussions were held. These are summarized in Attachment 1 to this Plan.

Preparing the Plan also involved reviewing and evaluating existing partnerships, services, and systems and identifying areas that can be strengthened. The boards' senior leadership led the planning process, assisted by the Regional Organizer, who supports the joint efforts of the boards. Once the Plan was completed, it was made available for public review and comment before being forwarded to the CWDB for review.

EXHIBIT 2
City Council 9 – 55 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 2 During the biennial process to update the PY 21-24 Local Plan, the three WDBs utilized a similar strategy and, again, engaged stakeholders, the community, and workforce development board members in discussions about strengthening the system's services.

Impact of the COVID-19 Pandemic on the PY 21-24 Unified Local Plan The development of the original PY 21-24 Unified Local Plan was affected by the onset of COVID-19, the ensuing public health crisis, and the myriad effects of the pandemic on businesses, schools, government operations, and the local workforce development delivery system. The influence of the pandemic on the planning process in late 2020 and early 2021 was undeniable, as its shaped stakeholders' views about the economy, the workforce, training, and virtually every aspect of the workforce system.

By the time the 2023 biennial modification to the Unified Local Plan was being developed, circumstances had changed significantly. While COVID remains a concern, the economy and communities have re-opened. The re-opening of the economy has shifted the focus of local workforce systems as they address evolving priorities in meeting the needs of job seekers and businesses. The three WDBs and their workforce system partners are keenly aware of changing customer attitudes, perceptions, needs, and priorities. Strategies corresponding to these changes have been embedded throughout this 2023 updated version of the Plan.

EXHIBIT 2
City Council 9 – 56 5/2/2023
II. WIOA CORE AND REQUIRED PARTNER COORDINATION
The Workforce Innovation and Opportunity Act includes requirements for local boards to establish a framework for collaboration among state and local programs financially supported by nineteen distinct federal fund sources. Six of these programs constitute the four "core partners:" the WIOA Title I Adult, Dislocated Worker, and Youth Programs; the WIOA Title II Adult Education and Family Literacy Act Program; the WIOA Title III Wagner-Peyser Act Program; and the WIOA Title IV State Vocational Rehabilitation Services Program. The core partners and thirteen other federally supported programs make up the WIOA-mandated one-stop partners. Each of the local boards has entered into a Memorandum of Understanding (MOU) with the organizations managing all federal partner programs at the local level. The narrative that follows describes coordination with the core and other required program partners as prescribed by WIOA.

A. Coordination with AJCC Partners and WIOA Memorandum of Understanding Over the last four decades, the three local boards in Orange County have built solid and effective relationships with state and local agencies representing the One-Stop partner programs. Throughout the remaining period of the Local Plan, the WDBs look forward to further enhancing coordination with each workforce system partner.

Following are local organizations representing the WIOA core and required partner programs that are party to the MOU for each of the three local boards in Orange County.

Orange County WDB
Federal Partner Programs MOU Partner
WIOA Title I Adult
WIOA Title I Dislocated Worker
WIOA Title I Youth
Orange County Workforce Development Board
WIOA Title II Adult Education and Literacy North Orange County Continuing Education Huntington Beach Adult School
WIOA Title III Wagner-Peyser Employment Development Department WIOA Title IV Vocational Rehabilitation California Department of Rehabilitation (DOR) Carl Perkins Career Technical Education North Orange County Continuing Education Title V Senior Community Service
Employment Program (SCSEP)
SER – Jobs For Progress
Job Corps Long Beach Job Corps Center
Native American Programs
(WIOA Section 166)
United American Indian Involvement
Migrant and Seasonal Farmworkers
(WIOA Section 167)
Not applicable. Program is not present in local area.

Jobs for Veterans State Grants Employment Development Department Youth Build Long Beach Job Corps
Trade Adjustment Assistance (TAA) Employment Development Department Community Services Block Grant Community Action Partnership of Orange County Housing and Urban Development E&T OC Housing Authority - FSS Unemployment Insurance (UI) Employment Development Department Second Chance Act Grantee None in the local area
EXHIBIT 2
City Council 9 – 57 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 4 Temporary Assistance for Needy Families
(TANF)/CalWORKs
County of Orange, Social Services Agency (SSA)
Santa Ana WDB
Federal Partner Programs MOU Partner
WIOA Title I Adult
WIOA Title I Dislocated Worker
WIOA Title I Youth
Orange County Workforce Development Board
WIOA Title II Adult Education and Literacy Santa Ana College Rancho Santiago Community College District
WIOA Title III Wagner-Peyser Employment Development Department WIOA Title IV Vocational Rehabilitation California Department of Rehabilitation Carl Perkins Career Technical Education Santa Ana College Title V Senior Community Service
Employment Program (SCSEP)
SER – Jobs For Progress
Job Corps Long Beach Job Corps Center
Native American Programs
(WIOA Section 166)
United American Indian Involvement
Migrant and Seasonal Farmworkers
(WIOA Section 167)
Not applicable. Program is not present in local area.

Jobs for Veterans State Grants Employment Development Department Youth Build Long Beach Job Corps Center
Trade Adjustment Assistance (TAA) Employment Development Department Community Services Block Grant Community Action Partnership of Orange County Housing and Urban Development E&T Santa Ana Housing Authority Unemployment Insurance (UI) Employment Development Department Second Chance Act Grantee None in the local area
Temporary Assistance for Needy Families
(TANF)/CalWORKs
County of Orange, Social Services Agency
Anaheim WDB
Federal Partner Programs MOU Partner
WIOA Title I Adult
WIOA Title I Dislocated Worker
WIOA Title I Youth
Orange County Workforce Development Board
WIOA Title II Adult Education and Literacy North Orange County Continuing Education Huntington Beach Adult School
WIOA Title III Wagner-Peyser Employment Development Department WIOA Title IV Vocational Rehabilitation California Department of Rehabilitation (DOR) Carl Perkins Career Technical Education North Orange County Continuing Education Title V Senior Community Service
Employment Program (SCSEP)
SER – Jobs For Progress
Job Corps Long Beach Job Corps Center
Native American Programs
(WIOA Section 166)
United American Indian Involvement
Migrant and Seasonal Farmworkers
(WIOA Section 167)
Not applicable. Program is not present in local area.

Jobs for Veterans State Grants Employment Development Department Youth Build Long Beach Job Corps Center
Trade Adjustment Assistance (TAA) Employment Development Department Community Services Block Grant Community Action Partnership of Orange County Housing and Urban Development E&T Anaheim Housing Authority Unemployment Insurance (UI) Employment Development Department Second Chance Act Grantee None in the local area
EXHIBIT 2
City Council 9 – 58 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 5 Temporary Assistance for Needy Families
(TANF)/CalWORKs
County of Orange, Social Services Agency
The local boards and their partners coordinate the delivery of services and resources described in each board's MOU, which delineates each partner's responsibilities with regard to supporting the planning, development, and implementation of programs and services as part of the local America's Job Centers of California (AJCC) system. The MOU is a functional tool that outlines how the boards and AJCC partners work together to create a unified service delivery system that meets their shared customers' needs. The MOU is reviewed and updated every three years, and a corresponding infrastructure funding agreement and other system costs are reviewed annually.

Local boards hold AJCC partner meetings regularly, ranging from monthly to quarterly.

Participation in these meetings helps strengthen the partnership across programs and works to improve the system's effectiveness to meet the needs of both job seekers and business customers. The meetings provide a platform for partners to review performance, shared goals, and address issues that impact service delivery. Partner meetings are also used for information sharing and to cross-train staff to increase understanding of resources available in the AJCC system. The local boards and partner organizations share the responsibility of providing professional development training to staff.

Several co-located partners are in the AJCCs, enabling them to collaborate more effectively and avoid duplication of services. As necessary, staff from partner agencies interface with clients and support WIOA-funded case managers in developing individual employment plans that may include partner agency services. They also participate in general orientations, host client workshops, support clients in the resource room, and support on-site hiring events. Core, required, and other partners organizations and programs are co-located at AJCCs administered by each of the three local boards as follows:

Orange County WDB AJCCs: EDD, DOR, County of Orange Office on Aging, and the City of La Habra. Career Teams, LLC, the contracted career services provider, and America Works, the contracted AJCC Operator, are also located at the AJCCs.

Santa Ana WDB AJCC: EDD, DOR, SER Jobs for Progress, SSA, Housing Authority, and City-administered youth programs (SAY Youth and CA4All).

Anaheim WDB AJCC: EDD, DOR, SSA, Working Wardrobes, and North Orange Continuing Education.

Outreach efforts that support the AJCC programs are shared among partners. Partner agencies promote each other's programs to job seekers in the community to increase exposure to workforce development system services. AJCC partners also assist in staffing the Orange County WDB's One-Stop mobile unit, enabling them to reach more individuals in the community. AJCC partners coordinate service delivery to business customers that support the training and retention of a skilled workforce. Coordination involves identifying and designing appropriate business solutions, engaging businesses EXHIBIT 2
City Council 9 – 59 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 6 in sector strategies, participating in rapid response events, and preemptive layoff aversion activities. Partners also support the promotion of work-based learning programs to the business community.

Other Strategic Partnerships
The one-stop service delivery system’s core and mandated partners outlined in WIOA provide critical support to the AJCCs and are an integral part of the workforce development system in Orange County. However, in addition to these the public programs, a wide range of local organizations and programs are essential workforce system partners, as they provide an array of services and support that benefits job seekers, workers, and businesses. Broadly, such partners fall into three categories: labor, business-serving agencies, and community-based organizations (CBOs). The following is a summary of the many ways in which these local partners contribute to and enrich Orange County’s workforce development delivery system.

Partnerships with Organized Labor
The labor movement and the public workforce development system have long shared common interests in supporting workers and candidates for employment in developing skills; securing employment with good wages, benefits, and security; and in building careers with mobility, clear paths to advancement, and opportunities to earn family supporting wages and achieve a middle class standard of living. With the implementation of WIOA as the nation’s principal source of public funding for development of the workforce, opportunities for collaboration between the WIOA-mandated partner programs and organized labor have increase in several ways, including the following:

Representation of “Worker Voice” on Local Workforce Development Boards: Local boards provide oversight of and set a strategic direction for the WIOA-funded local workforce system. They benefit from a membership that is representative of different disciplines and perspectives. WIOA requires that no less than 20 percent of the members of each local WDB represent the workforce, with two of more or such members representing organized labor. The Orange County, Santa Ana, and Anaheim WDBs have strong and supportive representation from local unions and other labor representatives. Across the three local boards are members representing the International Brotherhood of Electrical Workers (IBEW); United Food and Commercial Workers (UFCW); California School Employees Association (CSCA); United Union of Roofers, Waterproofers, and Allied Workers; Laborers Union (LiUNA); and the Orange County Labor Federation, which represents dozens of local unions from every sector of the labor movement. The individuals representing organized labor on the three labor boards bring unique insight into issues affecting workers and provide information and support for connecting workforce system customers to labor represented jobs and careers.

Outreach and Providing Information to Individuals Seeking Employment and Exploring Careers: Local labor organizations are effective partners in supporting the workforce system in recruiting candidates for jobs and training. One example of such coordination EXHIBIT 2
City Council 9 – 60 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 7 is the series of activities occurring during national Apprenticeship Week. Annually, the County, in partnership with the local WDBs, the Orange County Labor Federation, AFLCIO, the Los Angeles/Orange County Building and Construction Trades Council, and the International Brotherhood of Electrical Workers host OC National Apprenticeship Week events. During Apprenticeship Week, the partners host a series of presentations by and discussions with registered apprenticeship champions to showcase their successes and demonstrate how registered apprenticeship programs help build up the country’s workforce to address pressing issues that include: responding to climate change, modernizing cybersecurity responses, addressing public health concerns, and rebuilding the country’s infrastructure. The workforce and labor partners also highlight how registered apprenticeships provide a viable career path for everyone, including women, people of color, and persons with disabilities. Additionally, these events provide apprentices a platform to share their experiences and how participation in apprenticeships have transformed their lives.

Provide Job-Specific Skills Training through Registered Apprenticeships and Structured Pre-Apprenticeship Training Programs: Labor organizations, particularly local unions representing the construction trades, have an expansive history of using apprenticeships to provide work-based learning that results in workers developing certified, industryrecognized skills. A wide range of apprenticeships are available to job seekers in Orange County, including much sought after opportunities, such as apprenticeships offered by the IBEW. Throughout Orange County, local WDBs can also connect WIOA participants and other workforce system customers to various multi-craft core curricula (MC3) construction pre-apprenticeship training programs, which are operated under the oversight of the Los Angeles/Orange County Building and Construction Trades Council.

Partnerships with Business-Serving Agencies and Programs Equal in importance to job seekers as customers are businesses. Therefore, the workforce development boards of Orange County frequently collaborate with local organizations that focus on providing services to businesses of all types and sizes, including companies representing the key industries that are identified as priority target sectors within the Orange County Regional Planning Unit’s PY 21-24 Regional Plan and its 2023 Biennial Update.

Given their close relationships and ongoing interactions with local businesses, chambers of commerce are uniquely positioned to support local enterprises. Chambers make introductions to businesses leaders, inform the workforce system of new and expanding companies, and frequently serve as liaisons between local businesses and the WDBs.

While the system partners work with dozens of chambers of commerce, local boards have developed particularly effective relationships with the chambers in Irvine, Santa Ana, and Anaheim.

To assist businesses customers, the local WDBs also work with the Orange County Inland Empire Small Business Development Center Network, which offers business consulting, training, and online courses at no cost to entrepreneurs and business owners throughout EXHIBIT 2
City Council 9 – 61 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 8 Orange, Riverside, and San Bernardino counties. The centers are funded in part by the U.S. Small Business Administration (SBA). The lead center is based in Orange County and is hosted by the College of Business and Economics at California State University, Fullerton.

Through the boards’ connection to the SBDC, they are building a relationship with the Small Business Diversity Network (SBDN), a non-profit organization that supports small businesses throughout Orange County that are owned by minorities, women, veterans, LGBTQ individuals, and people with disabilities.

Partnerships with Community-Based Organizations
Over the last four decades, each of the three WDBs in Orange County has developed close and effective relationships with non-profit and community-based organizations.

Such organizations are an integral part of the fabric of workforce development service delivery in the County, providing a vast array of services that supplement those offered under WIOA, by the core and required partner programs, and through other publiclyfunded initiatives. Not only do CBOs fill gaps in services offered by public programs, they frequently function as community on-ramps to the AJCCs and other agencies that comprise the workforce development system by providing information and referrals.

Among the many non-profit agencies and CBOs with which the local boards collaborate, the following organizations have notably strong ties with the workforce system: Orange County United Way, OC Goodwill, 211 Orange County, Working Wardrobes, OC Conservation Corps, Hope Builders, Project Kinship, Orange County Children’s Therapeutic Arts Center, and Chrysalis.

Detailed information on the programs, services, and resources of organized labor, business-serving, and community-based organizations that are foundational partners of the Orange County workforce system can be found online at Orange Workforce Alliance (OWA) website: https://orangeworkforcealliance.com/. OWA represents the programs and interests of the three Orange County-based local workforce boards, along with those of many workforce system partners.

B. Partners' Efforts to Collaborate on Co-Enrollment and Case Management Local boards support the integration of service delivery within the AJCC system, including strategic co-enrollment and common case management strategies. The boards maintain strong partnerships with organizations committed to collaborating to increase service integration, as appropriate, for the local areas' needs and for improving participant experiences. These practices allow partners to leverage limited resources and eliminate duplication of services. Case management is a shared responsibility among partners serving joint customers. CalJOBS, the statewide MIS system for WIOA and other programs administered by EDD, facilitates communication between partners and documents participant activities, outcomes, and referrals.

EXHIBIT 2
City Council 9 – 62 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 9 During intake, case managers determine if participants can benefit from services provided through more than one partner program. The intake process includes participants' authorization to release information that allows sharing of specific information among partners. Co-located partners use a common enrollment application to assess basic eligibility across multiple programs. System partners are cross-trained and knowledgeable on eligibility and program offerings of numerous programs, enabling them to make appropriate referrals and helping participants navigate and access resources across partner programs.

Examples of co-enrollment strategies include enrolling individuals from priority and target populations in two or more programs for which they are eligible and that address unique areas of need. Co-enrollment may include enrolling veterans in WIOA Title I and the statefunded VEAP program or federally-funded veterans services administered by communitybased partners. WIOA eligible individuals who are English language learners also often participate in WIOA Title II services through which they receive ESL and other essential skills training. Job seekers with disabilities may be served by a range of local partner programs, such as DOR, Goodwill, and the AJCC.

Through community and stakeholder meetings, including those held in support of the development of the original PY 21-24 Unified Local Plan, the local boards identified the following areas where improvements could be made with regard to integrated service delivery and a seamless customer experience:
• Increase cross-training on WIOA programs and services, including community college and adult school frontline staff.
• Regularly schedule cross-training sessions to ensure staff knowledge of partner programs and services is current and new staff members are trained. • Improve the bi-directional referral process between local boards and all system partners to improve communication and outcome tracking by: 1) increasing CalJOBS referral system usage by system partners or review other systems recently adopted by partner agencies; and 2) providing training to system partners on CalJOBS referrals.
• Continue Orange County Leadership Council meetings, but create working groups of partner organizations to address system issues that impede a seamless customer experience.

As the biennial update to the Local Plan was being developed, representatives of the local boards noted that progress had been made on the foregoing objectives, particularly in the area of training for workforce system partner staff. As training needs are ongoing and constantly evolving, the boards will prioritize the delivery of various training during regularly scheduled partner meetings and ad hoc sessions, as necessary.

Community and stakeholder input gathered during the process of preparing the Biennial Modification to the PY 21-24 Unified Local Plan cuts across various Plan topics and is, therefore, summarized in Section V.

EXHIBIT 2
City Council 9 – 63 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 10 C. One-Stop System's Use of Technology and Other Remote Strategies In March 2020, the local boards' modified operations due to the COVID-19 pandemic.

Santa Ana and Orange County AJCC/One-Stop Centers were accessible in-person (by appointment) and through virtual services. Anaheim WDB provided phone and virtual services to clients and collaborated with the Anaheim Central Library to support clients who needed access to computers and additional in-person support. The local boards are again providing in-person services at their AJCCs.

Hybrid strategies, a combination of in-person and virtual services, have become the norm.

Following the expansion of virtual services during the pandemic, the boards clearly recognized that many individuals prefer to access services without going into a one-stop career center location. Virtual service delivery is also effective for many individuals with barriers, such as transportation and childcare. However, the local boards acknowledge that virtual service delivery poses obstacles for individuals who struggle with technology and do not have access to a computer or broadband service. The three WDBs are collaborating with various initiatives at all levels of government to decrease the digital divide.

Before the pandemic, the Orange County WDB began the development of a comprehensive virtual One-Stop Center. While work on the project was somewhat slowed during the pandemic, a fully functioning virtual AJCC will be available by late 2024. The virtual one-stop delivery system will use a customized learning management system (LMS) that provides local boards and AJCC partners with a single system for the online delivery of services. The LMS system will help jobseekers access job search assistance, training, and essential support services from any location. Businesses will be able to conduct virtual hiring events and remotely access AJCC support. The system provides significantly expanded access for Orange County residents, including those in remote areas.

Services provided online during the pandemic are still available via the web and in-person under the hybrid approach. Such services include orientations, workshops, and rapid response events. AJCC educational partners continue to provide instruction online.

Workforce development system partners have also developed a blended model that includes online and in-person service delivery. Some of the boards and AJCC partners provide hardware resources, including internet hotspots, laptops, and Chromebooks, to program participants, while others make these tools available at their facilities or accessible community-based locations.

Another effective strategy for making workforce services widely accessible is the Orange County WDB's use of a wheelchair-accessible mobile unit that functions as a One-Stop on wheels. The mobile unit has twelve computers and a monitor on the outside used for outdoor orientations and workshops. It is available for the boards and system partners to use to serve the community. The unit is regularly dispatched to community events, EXHIBIT 2
City Council 9 – 64 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 11 libraries, partner agencies, and parks. It is also used to reach targeted communities and areas of Orange County that are not near a comprehensive AJCC.

D. Coordination of Workforce Activities and Support Services The local boards have an aligned supportive services policy that outlines the coordination of resources and services. Supportive services provide participants with assistance such as childcare, bus passes, gas cards or mileage reimbursement, work attire, occupational license fees, school supplies, and work tools. These services enable participants to engage in WIOA career and training activities. Case managers work directly with clients to address barriers to participating in programs and services, including barriers that can be mitigated through supportive services. If the case manager determines a need and supportive services cannot be obtained through other programs, WIOA Title I funds can be used to provide the support.

The local boards work with AJCC partners and other community organizations to identify support services resources. The demand often exceeds the budgets of the local boards.

Customers are referred to other organizations to obtain such services before the boards' limited support services are expended. The supportive services most needed are childcare, transportation assistance, and work attire. Examples of local partners that can provide support to various customers groups served by the AJCCs include, but are not limited to, DOR (accommodations and tools to support workplace environments); Community Health Initiative of Orange County (access to publicly-supported health insurance programs); Chrysalis (specialized counseling services); Goodwill of Orange County (ASL interpreting services); and Working Wardrobes (business attire and workappropriate clothing).

E. Physical and Programmatic Accessibility for Individuals with Disabilities The Orange County, Santa Ana, and Anaheim WDBs comply with WIOA Section 188 and the applicable provisions of the Americans with Disabilities Act (ADA) of 1990. All AJCC/One-Stop Centers are accessible, and various assistive technology devices are available for those who have a physical, visual, or hearing impairment. However, the local boards and partners recognize that more resources are needed and that acquiring additional assistive technology tools is a goal of the Local Plan.

The local boards and AJCCs ensure all locations meet ADA requirements through the Biennial Local Area Self-Assessment checklist. The local boards also ensure that all eligible training providers meet the necessary standards for participants to access training. The boards comply by following the nondiscrimination and equal opportunity procedures outlined in WSD17-01. More specifically, the boards ensure the following:
• Contracts, cooperative agreements, job training plans, and policies and procedures contain nondiscrimination assurances.
• The AJCC/One-Stop Centers provide initial notice and continuing notice that they do not discriminate by posting the required "Equal Opportunity is the Law" poster with the EXHIBIT 2
City Council 9 – 65 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 12 EEO contact information for filing a complaint. Postings are in prominent places in the centers and on the websites.
• Nondiscrimination information is provided during verbal presentations, including participant orientations.
• Enrolled clients sign a nondiscrimination form maintained in the participant's file. • All staff members are provided with nondiscrimination policy information and training upon hire. Orange County repeats the training annually, and Santa Ana and Anaheim staff repeat the training every two years.
• Program flyers and program communication contain an EEO and auxiliary aid and services statement.

As the local boards look to strengthen services for customers with disabilities, they will coordinate with their counterparts at DOR and continue to seek the department's guidance on accessibility, facility layout, and assistive technology, along with training to increase staff effectiveness in working with job seekers with disabilities. In addition, the boards will rely on disability services and resources asset mapping that the Thompson Policy Institute at Chapman University led.

III. STATE STRATEGIC PARTNER COORDINATION
In 2018, the State completed and published a biennial modification to California's Unified Strategic Workforce Development Plan for Program Years 2016-2019. CWDB identified several new strategic partnerships with state-level agencies and initiatives within this modification. Guidance issued by the State Board in 2018 to local boards regarding twoyear modifications to their PY 2017-2020 Plans required that WDBs pursue these partnerships within their jurisdictions. In the 2019 modification to the Local Plan, the WDBs in Orange County described these local-level relationships, some of which were in an early stage of development. Following is a summary of the evolution of these strategic partnerships and approaches under consideration to further strengthen collaboration with local providers and programs.

A. Coordination with County Human Services Agency and Other Local Partners That Serve Individuals Accessing CalFresh Employment and Training Services The boards and co-located AJCC partners are committed to working with Orange County SSA to improve labor market outcomes for all recipients of CalFresh, including, but not limited to, participants in CalFresh Employment & Training Services (CalFresh E&T).

Under SSA's design for the Orange County CalFresh E&T program, participation is mandatory for employable individuals who receive General Relief (GR). The GR program provides temporary cash aid in the manner of a loan to eligible indigent adults who do not have custody of any minor children and do not qualify for federal- or state-funded cash aid programs. The CalFresh E&T program is not currently available to other CalFresh recipients. CalFresh E&T participants participated in work experience programs at worksites developed by SSA staff before the COVID-19 pandemic. The California Department of Social Services (CDSS) collaborated with Cell-Ed to provide welfare to work and CalFresh E&T program participants with the opportunity to receive education EXHIBIT 2
City Council 9 – 66 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 13 and training online to build skills and engage in countable CalFresh participation hours (20 hours monthly) while sheltering during the COVID-19 pandemic. This model has fulfilled an immediate program need during the pandemic.

As service delivery in all public programs returns to pre-pandemic formats, the CalFresh E&T program is transitioning back to its original structure. As such, the three WDBs and their workforce system stakeholders are prepared to assist participants with the full range of workforce services available through WIOA and partner programs.

The local boards provide priority service to recipients of public assistance. Before the COVID-19 pandemic, the local boards were finalizing the program design and referral process for CalFresh E&T participants. SSA requires tracking of participant attendance in staff monitored job search and other WIOA program activities. Historically, AJCCs have not tracked hours and attendance except for WIOA-funded training programs. A process to track hours and attendance was established and can be implemented at the request of SSA.

To strengthen the partnership and improve outcomes for the target population, the boards and SSA have agreed to the following:
• Implement a program and referral process and move forward with referrals to the AJCC for those CalFresh E&T participants who elect to be served through the AJCC instead vs. other options.
• SSA will ensure all CalFresh E&T participants receive information regarding employment services under WIOA and the local workforce system partners. • Provide SSA frontline staff training on the programs and services available through the one-stop delivery system's staff and partners.
• The boards, SSA, and community-based organizations will research program models and discuss the possibility of expanding the CalFresh E&T program to additional CalFresh recipients by engaging partners that can provide a non-federal match.

B. Coordination with Local Child Support Agency and Other Local Partners Serving Individuals That Are Non-Custodial Parents
Anaheim, Santa Ana, and Orange County boards, co-located partners, and the Orange County Department of Child Support Services (DCSS) formal partnership arrangement was established during the WIOA local plan modification process in 2018. A bi-directional referral and consent process was established and is the current method used to refer non-custodial parents to the AJCC's. After instituting the partnership, the boards provided in-person and online training to 136 DCSS staff to ensure staff members understood WIOA programs and the new referral process. In addition to the training provided, the workforce board and DCSS managers met monthly to discuss program success and improvement opportunities. The partners will continue to meet monthly to discuss opportunities to improve the labor market outcomes of unemployed, underemployed, and payment-delinquent non-custodial parents. The partnership has initially experienced moderate success, with 131 referrals to the AJCCs. Of those non-custodial parents EXHIBIT 2
City Council 9 – 67 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 14 referred, 58% of them had driver's license holds released due to participation in the WIOA program. However, since the onset of the pandemic, services have stalled, and referrals ceased. The local workforce boards are invested in the relationship with DCSS and are anxious to return to pre-COVID processes and referrals.

To strengthen the partnership and improve outcomes for the target population, the boards and DCSS are committed to the following:
• Grow participant referrals by focusing on outreach planning and new strategies to promote the program to a broader population of non-custodial parents. • AJCC staff will provide additional training to frontline DCSS staff on WIOA eligibility and detailed program information.
• AJCC staff will work with DCSS staff to develop WIOA talking points for frontline DCSS staff to utilize in discussing WIOA services with non-custodial parents. • DCSS will train AJCC frontline staff on how to address concerns non-custodial parents express about going to work. Training will address the DCSS goal not to be a barrier to the non-custodial parent's employment goals and the tools they have available to modify child support orders.
• AJCCs will work with DCSS to develop a separate referral process for justice-involved non-custodial parents to the prison-to-employment (P2E) program. • DCSS will participate in the Orange County Leadership council bi-monthly meetings so the partnership can develop a broader range of support and participation from other community-based organizations and education providers.
• Board staff will explore additional options to provide workshops to non-custodial parents who are English language learners. DCSS serves a large population of Spanish-speaking and Vietnamese-speaking non-custodial parents who could benefit from career workshops taught in their native languages. AJCC staff currently offers language-specific services on a one-on-one basis to individuals, as necessary. The centers do not currently offer language-specific workshops.

As the biennial modification was being prepared, the local boards agreed to explore opportunities with DCSS to co-locate staff within the AJCCs to facilitate immediate handoffs to workforce service staff after non-custodial parents meet with DCSS representatives.

C. Coordination with Local Partnership Agreement Partners Established in Alignment with the Competitive Integrated Employment Blueprint and Other Local Partners That Serve Individuals with Developmental and Intellectual Disabilities
In 2018, the California Department of Education, DOR, and the California Department of Developmental Services developed the Competitive Integrated Employment (CIE) Blueprint, which is a five (5)-year plan to assist people with intellectual disabilities and development disabilities (ID/DD) prepare for and secure a job earning at least minimum wage working in the community with people without disabilities. The goals of the Blueprint are to:

EXHIBIT 2
City Council 9 – 68 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 15 • Help the three state departments work together to better support people with ID/DD who want a CIE job.
• Create more options for people with ID/DD to prepare for and get a CIE job. • Help people with ID/DD to make their own choices about working in the community.

The CWDB and EDD issued guidance to local boards on the development of 2019 biennial modifications to four-year Local Plans. This guidance required that local boards connect with and seek to participate in the efforts of local partners (local education agencies, the DOR district office, and the regional center) to deliver CIE services as outlined in a Local Partnership Agreement (LPA). These agreements articulate how local partners will work together to streamline service delivery, engage their communities, and increase CIE opportunities for individuals with ID/DD. LPAs provide a framework for the local partners to determine strategies that will work best for them and the populations they serve.

CIE is defined in WIOA as full-time or part-time work at minimum wage or higher, with wages and benefits similar to those without disabilities performing the same work, and fully integrated with co-workers without disabilities. The Act requires that states ensure employment is offered as a priority outcome for people ID/DD. In furtherance of state and federal laws, programs that provide sheltered workshops and other aggregate work settings for people with ID/DD are being phased out. They are moving to competitive integrated employment, eliminating sub-minimum wage jobs.

The local boards in Orange County coordinate workforce development services with the agencies that are signatories to a Local Partnership Agreement (LPA) and other local partners that serve individuals with ID/DD. The local board representatives participate in the Orange County LPA meetings with the signatory partners and community-based organizations. The partnership has created new employment and training opportunities aligned with WIOA and CIE Blueprint initiatives.

The local boards and DOR also work together to engage businesses through participation in chamber events, diversity job fairs, and other network business events. Another initiative is the training and development of resources for helping persons with disabilities better understand their role in searching for, securing, and retaining competitive, gainful employment. This course is taught to frontline staff at the local AJCCs and partner organizations that are a part of the Orange County Leadership Council.

To strengthen the partnership with the LPA partners and improve overall outcomes for the CIE target population and other individuals with disabilities, the boards, DOR, core partners, and community-based organizations are committed to the following:
• DOR will expand student services to the One-Stop Centers for eligible youth program participants.
• DOR will provide local board frontline staff with cross-training and professional development to ensure they understand DOR's vast offerings.

EXHIBIT 2
City Council 9 – 69 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 16 • Local boards and DOR will improve "closing the loop" on referrals and consider using the CalJOBS referral system to provide referral feedback. • Increase participant referrals by focusing on targeted outreach and identifying other community-based organizations serving the target population.

As stated in section II of this Plan, the board's efforts in this area continue to be informed by asset mapping on disability services and resources developed by the Thompson Policy Institute at Chapman University.

D. Coordination with Community-Based Organizations and Other Local Partners That Serve Individuals Who Are English Language Learners, Foreign Born, and/or Refugees
The local boards have long-standing and effective partnerships with the community colleges and adult education partners in the Orange County region. The Rancho Santiago, South Orange County Regional, North Orange County Regional, and Coast consortia serve a diverse population of English language learners, foreign-born individuals, and refugee students. During the development of the original PY 21-24 Unified Local Plan, the local boards held an online discussion regarding services to these target groups. The session allowed educators, community-based organizations, and other stakeholders to share ideas and offer recommendations. The conversation helped all parties better understand how to address gaps that exist for these priority populations.

To strengthen partnerships and improve outcomes for the target population, the boards, education agencies, and community organizations committed to the following:
• Local boards will examine whether the OC Leadership Council meeting should be reformatted. The board will consider hosting smaller workgroups to address the targeted population's needs.
• Local boards will work with the educational providers to develop a program plan to improve support for individuals who have degrees from other countries that will: 1) reduce confusion by helping individuals navigate the process of obtaining college transcript translation and course equivalency review by colleges, ensuring they do not start, unnecessarily, from ground zero; and 2) provide funding that individuals need to pay for transcript translation and review.
• Help the target population understand how their existing skills can be used in the workplace and explore how work-based learning programs can support them in demonstrating their skills and abilities while learning new skills on the job. • Deploy the Orange County mobile One-Stop unit to the community colleges and adult education locations to improve outreach and access for the communities that do not have a comprehensive One-Stop close to them.
• Local boards will provide training to teachers and instructors on WIOA programs and services.

During the development of the 2023 update to the Local Plan, representatives of the three WDBs reported that significant progress had been made on the foregoing objectives. This EXHIBIT 2
City Council 9 – 70 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 17 progress includes, but is not limited to, the adoption of processes to assist immigrants in securing recognition of foreign transcripts; increased availability of web-based AJCC and workforce services system information in the seven core languages of Orange County; access to basic career services to interested individuals regardless of their immigration status; increased availability of ESL courses online; co-location of immigrant-focused partners and programs at the AJCCs; and collaboration between local boards and SSA on serving newly arrived refugees.

IV. WIOA TITLE I COORDINATION
The following narrative addresses services, activities, and administrative requirements of for the three local workforce boards in Orange County under the WIOA Title I formula programs, along with strategies for staff preparation, training, and ongoing professional development to effectively respond to participant needs.

A. Staff Training and Professional Development to Increase Digital Technology Skills
The onset of the pandemic and stay-at-home orders resulted in staff using more digital tools out of necessity. These immediate changes dictated that local boards move quickly, and individual staff members adopted many tools with very little training or direction. All staff members were required to use technology and were digitally literate before the pandemic, and as they engaged in immersive learning, they achieved greater digital fluency. The local boards provide an environment that allows staff time for self-directed learning with online videos created for product use. Frontline staff mastered products and delivered and produced training videos to help their co-workers gain knowledge. Staff assisted their colleagues in navigating new digital tools.

Digital fluency is a foundational aspect of productivity, enabling staff to perform more effectively. Since the current plan's implementation, digital skills training provided to staff has covered: Microsoft Office 365; videoconferencing platforms, including Zoom and MS Teams; and a series of CalJOBS training sessions. Additional training in digital skills will be provided to frontline staff during the remaining period of the PY 21-24 Unified Local Plan.

B. Frontline Staff Training and Professional Development to Increase Cultural Competency and Effectiveness in Working with Individuals and Groups that Have Been Exposed to Trauma
Orange County's population is racial and ethnically diverse, which is reflected in the customers who use AJCC services. In addition, workforce system staff estimates that a significant number of the customers they see may have experienced various forms of trauma based on vulnerable groups that they represent, along with the wide-ranging traumatic effects of the pandemic.

EXHIBIT 2
City Council 9 – 71 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 18 Staff training and professional development are a high priority for the local boards. The local boards and AJCC partners work together to provide frontline staff training. The Orange RPU has a training plan that includes a host of topics. The Orange RPU has successfully collaborated with partners and other organizations and leveraged training in the region. Any training hosted by the local board is open to partner staff and organizations in the Orange County Leadership Council. Training planned over the remaining period of the Local Plan includes, but is not limited to: cultural competency, trauma-informed care, motivating and building staff capacity, and sector strategies.

C. Coordination of Rapid Response and Layoff Aversion Activities The Anaheim, Santa Ana, and Orange County Workforce Development Boards continue to support statewide rapid response activities by providing rapid response and layoff aversion services to businesses and outplacement services to dislocated workers in the region. Rapid Response teams offer services to employers and workers affected by layoffs and mass closures in the Orange County region. The rapid response team is made aware of large layoffs through California's Worker Adjustment and Retraining Notification (WARN) system. Local boards also receive notice of smaller layoffs from AJCC partners, chambers of commerce, industry association meetings, and news outlets.

The rapid response team includes the local board, EDD, education and training providers, and community-based organization staff. Local board staff is responsible for making initial and follow-up contact with employers and coordinating with partner agencies to organize rapid response events. The three boards coordinate rapid response events when a large regional employer has notified them of a mass layoff that affects residents throughout Orange County. If businesses in adjacent workforce areas are affected, the Orange County boards also coordinate with WDB staff in these areas. The local boards' rapid response teams have developed a common rapid response presentation that ensures they deliver a consistent message throughout the county. The teams also participate in Southern California Rapid Response Roundtable meetings.

Local boards also assist businesses at risk of displacing employees by providing layoff aversion services. The boards receive businesses' referrals and use the Econovue system to identify at-risk companies for targeted layoff aversion services. Rapid response and layoff aversion services include:
• Online or on-site outplacement services for affected workers • Coordination with EDD on Trade Adjustment Assistance and Work Sharing programs • Customized training or incumbent worker training
• Conducting individual needs assessment of companies' "business retention" needs • Assistance with securing tax credits, incentives, and cost-containment programs • Coordination of utility and technology services
• Assistance in accessing public financing programs (local, state, and federal) and Industrial Development Bonds
• Identification of traditional financing opportunities EXHIBIT 2
City Council 9 – 72 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 19 • Assistance with obtaining California Employment and Training Panel (ETP) funding to assist in upgrading the skills of existing workers
• Coordinating with educational and job training institutions to satisfy the precise skills needs of one or more businesses
The Santa Ana WDB contracts with the local Chamber of Commerce to provide layoff aversion services and has established benchmarks for the completion of needs surveys that may indicate distress in a company that requires aversion strategies. Business outreach that supports layoff aversion is targeted to companies in growth industries and other key sectors.

Outplacement services for workers that have been affected by a layoff are provided to workers. Affected workers are made aware of these services through online and on-site rapid response events. The rapid response teams support laid-off workers in quickly accessing resources such as unemployment insurance, health insurance, and rollovers for retirement plans. Also, laid-off workers are provided information on WIOA-funded career and training services.

D. Services and Activities Available under WIOA Title I Adult and Dislocated Worker Programs
WIOA Title I Adult and Dislocated Worker employment and training activities offered through the AJCC system include a comprehensive array of employment and career services, such as career exploration workshops, classroom training, on-the-job training, transitional job opportunities, and other work-based learning opportunities, such as apprenticeships.

AJCC/One-Stop Delivery System
Brick-and-mortar AJCC facilities include those listed below. These sites are complemented by virtual services, which are a critical part of the hybrid workforce development delivery system that all three local boards have adopted in Orange County.

Orange County WDB AJCCs
Orange County Workforce Solutions Center
7077 Orangewood Ave., Ste. 200
Garden Grove, CA 92841
OC4Vets - Veterans Reemployment Office
1300 S. Grand Avenue, 2nd Floor, Building B
Santa Ana, CA 92705
Los Alamitos Joint Forces Training Base
11200 Lexington Dr. Bldg. 244
Los Alamitos, CA 90720
EXHIBIT 2
City Council 9 – 73 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 20 Supplementing the above facilities is the Orange County WDB mobile AJCC, which provides services from community and business locations throughout the county.

The OCWDB will relocate the Garden Grove AJCC to Brea by June 2023. In addition, a new site will open in South Orange County in Laguna Hills in 2023.

Santa Ana WDB AJCC
Santa Ana WORK Center
801 West Civic Center Drive, Suite 200
Santa Ana, CA 92701
Anaheim WDB AJCC
Anaheim Workforce Connection
201 South Anaheim Blvd.

Anaheim, CA 92805
Adult and Dislocated Worker Program Services
The three local boards offer a wide range of services for job seekers enrolled in the WIOA Title I Adult and Dislocated Worker programs. Services meet the needs of individuals with various levels of education and work experience and job seekers from vulnerable populations who may have one or more barriers to employment. Services are designed to prepare participants for entry-level and higher positions with businesses in and around Orange County, particularly businesses within the priority sectors that are identified in the Orange RPU PY 21-24 Regional Plan.

The AJCC system offers three levels of career services: Basic Career Services, Individualized Career Services, and Training Services. These are supplemented by follow-up services. Services are provided in no specific sequence. Instead, services are tailored to meet the needs of individuals while still allowing for tracking outcomes for reporting purposes.

Basic Career Services: Basic Career Services are made available to all individuals and include:
• Outreach, intake, and orientation to services that are available to all job seekers • Determinations of eligibility for WIOA. Individuals who do not meet WIOA eligibility criteria may continue accessing basic career services and be referred to partner programs and other community-based agencies
• Initial assessments of skill levels are conducted that address literacy, numeracy, and English language proficiency, as well as aptitudes, abilities, and supportive service needs
EXHIBIT 2
City Council 9 – 74 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 21 • Labor market information, including job vacancy listings, information on in-demand industry sectors and occupations, regional labor market information, and information on nontraditional employment
• Partner information and referrals are based on individual needs and requests from customers
• Training provider Information includes data on performance and costs of programs offered by eligible providers of training services, adult education, and career and technical education
• Assistance in establishing eligibility for programs such as financial aid for training and education programs not provided under WIOA
• Supportive services information, including types, limits, and sources • Unemployment insurance information assistance for filing unemployment compensation claims
Individualized Career Services: These services are provided when needed for an individual to obtain or retain employment. AJCC staff relies principally on assessments to determine the need for and appropriateness of individualized career services. Included are:
• Job readiness workshops
• Skills assessments
• Individual employment plans: These customized plans are developed through an indepth interviewing and evaluation process to identify employment barriers and appropriate employment goals. The Plan outlines activities to attain career objectives. • Group or individual counseling
• Transitional jobs
• Financial literacy services are provided based on individual needs • Supportive services, including services such as transportation, childcare, uniforms, and tools required for employment
• English language acquisition and integrated education and training programs are provided based on individual need
• Job search and placement assistance
Training Services: The boards provide access to a wide range of training programs, which fall broadly into two types: institutional (classroom) training programs, and work-based training programs, which are developed directly with employers and include activities such as on-the-job training and customized training. Incumbent worker training may also be provided to employed individuals to increase or upgrade their skills. Training modalities include:
• Occupational skills training, including training for nontraditional employment • On-the-job training
• Incumbent worker training
• Programs that combine workplace training with related instruction, which may include cooperative education programs
EXHIBIT 2
City Council 9 – 75 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 22 • Training programs operated by the private sector
• Skill upgrading and retraining
• Entrepreneurial training
• Transitional jobs
• Adult education and literacy activities
• Customized training conducted with a commitment by an employer Follow-Up Services
For 12 months, follow-up services may be provided to participants, including technical skills training, counseling, mentoring, crisis intervention, life skills, or emergency support required to sustain long-term employment.

Examples of innovative and promising features of services available through the AJCC system include:
• Comprehensive Employment Services: Career counseling and tools for job search preparation include training referrals, job listings, resume preparation assistance, interview workshops, access to on-site employer recruitments, and labor market information.
• Career Pathway Programs: Career pathway programs have a clear sequence, or pathway, of education coursework and may include stackable training credentials aligned with employer-validated work readiness standards and skills. AJCCs offer programs that include a full range of post-secondary education options that may involve attending programs at local adult education, community colleges, and private educational institutions. As appropriate for the individual, Career pathway programs combine occupational skills training with adult education services, give credit for prior learning, and adopt other strategies that accelerate the participant's educational and career advancement.
• Collaboration with Apprenticeship Programs: Santiago Canyon Community College (SCC) is one of the leading community colleges in Orange County that offers apprenticeship and journeyman training in various trades. The local boards make referrals to SCC for apprenticeship programs. The local boards plan to work closer with SCC to explore additional partnership opportunities for pre-apprenticeship programs. The boards are also working with the California Department of Industrial Relations Division of Apprenticeship Standards to explore opportunities to support the development of nontraditional apprenticeship programs.

The local boards have policies and adhere to the requirements of priority of service.

Priority is given to veterans (and spouses), recipients of public assistance, other lowincome individuals, and individuals who are basic skills deficient. Priority of service is established during intake and eligibility. AJCC operators' staff have been trained on the priority of service requirements, and the priority status is documented in CalJOBS. AJCC EXHIBIT 2
City Council 9 – 76 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 23 partners are informed of the local board's priority of service policy, and they assist in referring individuals that meet the priority of service criteria.

E. Services and Activities Available under WIOA Title I Youth Program The local boards serve eligible in-school and out-of-school youth through contracted service providers and partner organizations, assisting them in their career exploration, planning, education, and skills development. Youth with disabilities are served by providers serving all other youth, with the exception of in-school youth with disabilities under the jurisdiction of the Orange County WDB, who may be served under a specialized contract with Goodwill Industries of Orange County.

WIOA Title I Youth programs include the following fourteen required program elements:

1. Tutoring, study skills training, instruction, and evidence-based dropout prevention and recovery strategies

2. Alternative secondary school services, or dropout recovery services, as appropriate

3. Paid and unpaid work experiences with academic and occupational education as a component of the work experience

4. Occupational skills training

5. Education offered concurrently with and in the same context as workforce preparation activities and training for a specific occupation or occupational cluster

6. Leadership development opportunities

7. Supportive services

8. Adult mentoring

9. Follow-up services for no less than 12 months after the completion of participation

10. Comprehensive guidance and counseling

11. Financial literacy education

12. Entrepreneurial skills training

13. Services that provide labor market and employment information about in-demand industry sectors or occupations available in Orange County

14. Activities that help youth prepare for and transition to post-secondary education and training
The ratio of in-school to out-of-school youth served by the local boards is:

WDB In-School Youth Out-of-School Youth
Orange County WDB 25% 75%
Santa Ana WDB 20% 80%
Anaheim WDB 0% 100%
Core services and features of WIOA youth services available in the Orange County region include the following:

Case Management: Case managers provide youth guidance, support, and motivation while enrolled in the program and working toward their education, training, and EXHIBIT 2
City Council 9 – 77 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 24 employment goals. Case managers work with youth to develop an Individual Service Plan (ISP), which identifies the employment goals and the comprehensive services strategy provided to the participant by the One-Stop Center and AJCC partner agencies. Case managers maintain contact with participants and monitor their progress toward achieving goals in the ISP. If necessary, the case manager modifies the ISP in response to the participant's progress. The case manager also coordinates services with other AJCC partners that are part of the youth's comprehensive service strategy.

Work Experience: The local boards and AJCC partners provide work experience opportunities for youth to support their gaining workplace skills. Work experience may be a paid or unpaid activity. Work experience is a planned, structured learning experience in a workplace for a limited time. Youth may be placed at a private for-profit sector, nonprofit sector, or public sector worksite. Youth work experiences opportunities may include:
• Pre-apprenticeship programs
• Summer employment and other employment activities available throughout the school year
• Internships and job shadowing
• On-the-job training
Through the Orange County WDB, youth can participate in earn-and-learn programs such as "Youth with Impact." This program is a live, online "mini-MBA" program that equips participants with entrepreneurship skills, confidence, and business knowledge.

Job Readiness Training: Local boards and AJCC partners provide youth with opportunities to gain employability skills or job readiness training to prepare youth for employment or work experience opportunities. Youth gain these skills through structured activities and workshops.

Occupational Skills Training: Short-term occupational skills training is a program activity that may be offered to youth participants. Occupational skills training programs provide specific vocational skills and must lead to an industry-recognized certificate.

Educational Services: Local boards and AJCC partners provide educational services that include tutoring, basic education skills training, ESL training, and instruction that leads to a high school diploma or its equivalent.

Support Services: Youth are provided support services when necessary to enable their participation in other WIOA activities. Supportive services include, but are not limited to, linkages to community services, transportation assistance, childcare assistance, and work attire and work-related tools. As occurs for Adult and Dislocated Worker program participants, the local boards prioritize the use of non-WIOA funds for support services.

Digital Literacy Skills for Youth: Youth services moved to online platforms during the pandemic. Many youth participants adapted well to the online model with youth providers' support. In recent years, the local boards have been working to strengthen collaboration EXHIBIT 2
City Council 9 – 78 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 25 with the public library system. The boards have leaned on their library partners to support workforce development services through their offerings, including digital literacy programming, computer classes, online homework assistance through Brainfuse Help Now, resume assistance and career coaching through Brainfuse Job Now, and dropout recovery services for youth and adults. AJCC staff also connect youth to adult education and community college non-credit programs, which provide digital literacy programming.

F. Entity Responsible for Disbursal of Grant Funds and the Competitive Process Used to Award Contracts for WIOA Title I Activities The Orange County Board of Supervisors designates the Orange County Workforce Development Board to serve as the local board and as the fiscal agent responsible for grant funds' disbursal. Similarly, the City of Santa Ana serves as the Santa Ana Workforce Development Board's fiscal agent and bears responsibility for grant funds' disbursal. The City of Anaheim serves as Anaheim's Workforce Development Board's fiscal agent and bears responsibility for grant funds' disbursal.

The three local boards use a competitive procurement process to award sub-grants and contracts for WIOA Title I activities when award amounts are above the threshold required for such operations. The local boards follow local competitive procurement policies and procedures adopted by their respective governments. These written policies adhere to state and federal procurement regulations. In addition, the local boards comply with all requirements specified in EDD Directive WSD17-08 with respect to the procurement of equipment and related services.

G. How the Local Board Fulfills the Duties of the AJCC Operator and/or the Career Services Provider or Selection of AJCC Operators and Career Services Providers
Consistent with EDD Directive WSD19-13, the selection of AJCC operators and career services providers for the local boards is the result of open and competitive procurement processes. The Santa WDB and Anaheim WDB have been granted approval by state representatives acting on behalf of the Governor to function as the career services provider for the WIOA Title I Adult and Dislocated Worker programs.

The following tables summarize the functions and roles of the entities each board has a contractual relationship with:

Local Board Provider Role
Orange County America Works One-Stop Operator
Career Team, LLC Career Services Provider
City of La Habra Youth Services "Ready. Set. OC"
Program
Goodwill Industries of Orange
County
Youth Services for in-school youth
with disabilities
EXHIBIT 2
City Council 9 – 79 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 26 V. STAKEHOLDER INPUT AND CONSIDERATIONS FOR PY 21 - 24 Based on discussions held throughout the process used to develop the original PY 21-24 Local Plan, recommendations were made by workforce system partners and other stakeholders about various topics. This input was woven into the Plan narrative.

As the three local boards worked to prepare the biennial update to the Local Plan, stakeholders were again engaged in discussion about the system. From this input, the following were identified as priorities for further exploration, development, and/or enhancement by the WDBs and system partners over the remaining period of the PY 21- 24 Local Plan.
• With jobs seekers and businesses expressing a broad range of preferences regarding service modalities, the workforce system should provide as may options as possible, including brick-and-mortar career centers, virtual services, and community-based services options, such as community access points (e.g. partner facilities) and mobile services.
• Ensure that virtual services are of the same quality and have parallel content to inperson services delivered at the AJCCs. • Digital literacy is essential for all job seekers and is required to do most jobs. The workforce system should assess each customer's digital literacy and provide training in this area to ensure everyone has the basic skills to compete for and succeed in employment.
• AJCCs need to prepare job seekers to participate successfully in online interviews, which may require different skills and strategies than traditional in-person interviews. • To expand programs available to job seekers and to make training more accessible, make more online training programs and courses available.

Anaheim Pending renewed
procurement
One-Stop Operator
Anaheim WDB Career Services Provider
Hope Builders Youth Services
Orange County Conservation
Corps
Youth Services
Santa Ana Pending renewed
procurement
One-Stop Operator
Santa Ana WDB Career Services Provider
Orange County Children's
Therapeutic Arts Center
Youth Services
Project Kinship Youth Services
Orange County Conservation
Corps
Youth Services
EXHIBIT 2
City Council 9 – 80 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 27 • Recognizing the emotional toll of the pandemic, the workforce system should collaborate with organizations providing mental health services. • AJCC and workforce development system partner organizations should implement trauma-informed approaches to service delivery.
• Orange County has a large immigrant community that needs support in preparing for and finding work. Specialized approaches and strategies are required to assist individuals from this underserved group of job seekers. • Individuals needing training may be overwhelmed by the variety of institutions, programs, and courses available in Orange County. Using "navigators" may help job seekers determine the best service options.
• The county is diverse in terms of those needing workforce development assistance.

Customized approaches may be the best strategy for meeting the needs of various target groups.
• Information about AJCC services and workforce system partner programs should be available in the native languages most frequently spoken in Orange County. • Outreach to job seekers and businesses should leverage the full range of social media resources as they reach a wide audience at no cost.
• Web-based resources need to be accessible to and easy to navigate for people with disabilities.
• Expanding virtual services for businesses will enable the workforce system to reach many companies in the county.

EXHIBIT 2
City Council 9 – 81 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 28 VI. APPENDICES
The following items are included as part of the Local Plan.

Attachment 1: Stakeholder and Community Engagement Summary Attachment 2: Public Comments Received that Disagree with the Local Plan Attachment 3: Signature Page
EXHIBIT 2
City Council 9 – 82 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 29 Attachment 1
A. Stakeholder and Community Engagement Summary (Attachment 1) To facilitate the engagement of stakeholders in planning for the local workforce development delivery system and in the development of the PY 2021-2024 Local Plan, the local boards hosted a series of discussions outlined in the table below.

Recommendations and other input resulting from these discussions in embedded within the content of the Unified Local Plan.

Mode of Outreach Target of Outreach Summary of
Attendance
Comments
Email, phone, social
media, local board
websites,
Eventbrite
WIOA Core
Program
Partners
76 individuals
registered, and 43
attended
The meeting was well
attended by
representatives from
several core partner
agencies. We had
representatives from
the local boards,
adult schools,
community colleges,
conservation corps,
job corps,
community-based
organizations, and
housing authorities,
EDD.

Email, phone, social
media, local board
websites,
Eventbrite
CalFresh
Employment
and Training Partners
38 individuals
registered, and 27
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations,
Orange County
Social Services
Agency.

EXHIBIT 2
City Council 9 – 83 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 30 Mode of Outreach Target of Outreach Summary of
Attendance
Comments
Email, phone, social
media, local board
websites,
Eventbrite
Competitive
Integrated
Employment Partners
34 individuals
registered and 28
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
ROP programs,
Goodwill Industry,
City of Irvine
Disabilities, and other
community-based
organizations.

During the development of the biennial update to the Local Plan, the local boards hosted a community and stakeholder forum on "Hybrid Service Delivery." This forum was held in-person on November 30, 2022.

EXHIBIT 2
City Council 9 – 84 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 31 Mode of Outreach Target of Outreach Summary of
Attendance
Comments
Email, phone, social
media, local board
websites,
Eventbrite
WIOA Core Program
Partners, Community
Members,
Community Based
Organizations,
Education Partners
47 registered and 25
attended
The meeting was
attended by
representatives from
several core partner
agencies. We had
representatives from
the local boards,
adult schools,
community colleges,
community-based
organizations, and
EDD.

EXHIBIT 2
City Council 9 – 85 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 32 Attachment 2
B. Public Comments Received that Disagree with the 2023 Biennial Modification to the PY 21-24 Local Plan (Attachment 2)
The Anaheim, Santa Ana, and Orange County Unified Local Plan was posted online for a 30-day public comment period. There were no public comments received that disagreed with the unified local plan.

EXHIBIT 2
City Council 9 – 86 5/2/2023
Orange County WDBs 2023 Biennial Modification to PY 2021-24 Unified Local Plan 33 Attachment 3
C. SIGNATURE PAGE (Attachment 3)

ORANGE COUNTY UNIFIED LOCAL PLAN
The unified local Plan represents the Orange Regional Planning Unit efforts to maximize and coordinate resources available under Title I of the Workforce Innovation and Opportunity Act. This unified local Plan is submitted for the period July 1, 2021, through June 30, 2025, in accordance with the provisions of WIOA.

LOCAL BOARD CHAIRS LOCAL ELECTED OFFICIALS

SANTA ANA WORKFORCE DEVELOPMENT BOARD CITY OF SANTA ANA COUNCIL Signature Signature
Daisy Campos Valerie Amezcua
Name Name
Chair, Santa Ana Workforce Development
Board Mayor, City of Santa Ana
Title Title
Date Date
EXHIBIT 2
City Council 9 – 87 5/2/2023
Community Development Agency
www.santa-ana.org/community-development
Item # 10
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 2, 2023
TOPIC: Master Agreement with Eligible Training Provider List (ETPL) Vocational Schools

AGENDA TITLE
Master Agreement with Qualified Schools to Provide Vocational Training with Federal Workforce Innovation and Opportunity Act (WIOA) and Orange County Social Services Grant Funds for Fiscal Year 2023-24 through Fiscal Year 2026-27(Non-General Fund)

RECOMMENDED ACTION

1. Authorize the City Manager to execute a master agreement, for a total aggregate amount not to exceed $2,765,820 payable from federal Workforce Innovation and Opportunity Act and Orange County Social Services grant funds, for a four-year period expiring June 30, 2027, with a school or training provider listed on the State Employment Training Provider List (ETPL), to deliver occupational skills training on an as needed basis to unemployed and low-income individuals, subject to nonsubstantive changes approved by the City Manager and City Attorney.

DISCUSSION
The federal Workforce Innovation and Opportunity Act (WIOA) grant assists job seekers with employment, education, vocational training, and support services to succeed in the labor market. Funding under WIOA is used to assist program participants to access career training through the Eligible Training Provider List (ETPL), which is a list of stateapproved schools and their training programs. In order to be placed on the ETPL, schools must meet several rigorous State requirements including approval by the State Bureau for Private Post-Secondary Education, and be accredited by the Western Accrediting Commission for Schools. A sample of the ETPL is attached for reference (Exhibit 1). Participants can select from the list of approved programs that meet their needs.

As required by State regulations, Local Workforce Development Boards must identify eligible schools that are qualified to receive funds to train job seekers and low-income adults. The State-approved ETPL includes relevant performance, cost information, and presented in a way that is easily understood to maximize informed consumer choice.

City Council 10 – 1 5/2/2023
Master Agreement with Eligible Training Provider List (ETPL) Vocational Schools May 2, 2023

Page 2 ends

Santa Ana City CouncilMay 2, 2023

Santa Ana City Council
May 2, 2023