Agenda packet — Santa Ana City Council, July 18, 2023 (part 3 of 9)

3 6
0 3
•Receive, hear, and review misconduct complaints, tort claims, or lawsuits made against on-duty Santa Ana Police Officers which allege Santa Ana Police Officers have engaged in misconduct as specified in Santa Ana Municipal Code Sec. 2- 665(b).
•Receive and discuss reports from the Independent Oversight Director on all incidents involving alleged misconduct by Santa Ana Police Officers as specified in Santa Ana Municipal Code Sec. 2-665(b).
•Direct the Independent Oversight Director to independently review and investigate citizen complaints, tort claims, or lawsuits alleging the types of police misconduct as identified in section 2-665(b) or when the City Council provides authorization pursuant to Santa Ana City Charter Section 1100. •Authorize the Independent Oversight Director to audit complaint files and review policies to ensure best practices are implemented.
•Advise the Mayor, City Council, City Manager, and Police Chief on community relations issues involving the Police Department.
•Review any Memorandum of Understanding (MOU) between the City and the Santa Ana Police Officers Association or the City and the Santa Ana Police Management Association, and provide suggestions and recommendations concerning negotiations to the City Manager and the City Council. •Conduct public meetings to educate the community on the purpose of the Police Oversight Commission and provide a forum for discussions about police policies, practices, and procedures.
•Prepare and submit an annual report to the City Council concerning the Commission’s activities, findings, and recommendations.

Once each a commissioner is appointed, they will be required to take an oath and execute a confidentiality agreement and engage in a series of trainings, and may participate in a ride-along with the Santa Ana Police Department.

Commissioner Appointments
To date, six individuals have been appointed to the Commission:

Commissioner
Name
Nominated by Appointed by the City
Council on
Danny Vega Mayor Amezcua (citywide) February 21, 2023
Carlos Perea Councilmember Vazquez (Ward 2) March 7, 2023 Nadin Said Councilmember Bacerra (Ward 4) May 2, 2023
Keith Carpenter Councilmember Phan (Ward 1) May 16, 2023 Amalia Mejia Councilmember Hernandez (Ward
5)
June 6, 2023
Evangeline
Gawronski
Councilmember Penaloza (Ward 6) June 6, 2023

City Council
13 –
2 7/18/2023

Police Oversight
July 18, 2023

Page 3 ends

3 6
0 3
About the Independent Oversight Director
The City Council is authorized to appoint an Independent Oversight Director who will serve at the will and pleasure of the City Council. In addition to staff support that will be provided to the Commission, the Independent Oversight Director will assist the Commission in performing its duties and exercising its powers. This includes the following:
•Conduct investigations of allegations of on-duty Santa Ana Police Officers who have engaged in misconduct as specified in Santa Ana Municipal Code Sec. 2- 665(b).
•Request and review citizen complaints and "use of force" reports or other pertinent documents maintained by, or available to, the Chief of Police to determine whether death or great bodily injury was caused by direct police action.
•Audit complaint files and review policies to ensure best practices are implemented.

Implementation Tasks
The City Manager’s Office is working with a cross-departmental working group composed of staff from the City Attorney’s Office, City Clerk’s Office, City Manager’s Office, and Santa Ana Police Department to launch the operations of the Commission.

Below is a list of outstanding tasks that the City Manager’s Office is leading:

Recruit the Independent Oversight Director.

At the January 17, 2023 meeting, the City Council directed staff to engage an Independent Oversight Director as in independent contractor who will serve at the will and pleasure of the City Council. The City Manager’s Office is releasing a Request for Proposals (RFP) for the Independent Oversight Director. The RFP outlines the requirements for the Independent Oversight Director role according to the provisions of the Commission ordinance.

As outlined in the Commission ordinance, the Commission will have the opportunity to review the top three Independent Oversight Director candidates and make a recommendation to the City Council. Ultimately, the City Council will interview the top three candidates and, by a majority vote, appoint the Independent Oversight Director.

Additionally, as directed by the City Council at the January 17, 2023 meeting, there will be an opportunity for the public to engage with the recruitment process.

Recruit the Police Oversight Management Analyst.

The City Manager’s Office worked with staff from the City Attorney’s Office and Human Resources department to create a Police Oversight Management Analyst (Excepted) position to provide regular staff support to the Commission. The position was presented to the City Council as a workforce change to the City Attorney’s Office at the June 6, 2023 meeting. The workforce change was subsequently approved and added to the City

City Council
13 –
3 7/18/2023

Police Oversight
July 18, 2023

Page 4 ends

3 6
0 3
Attorney’s Office’s personnel budget. Accordingly, the Police Oversight Management Analyst (Excepted) will work in the City Attorney’s Office.

Schedule First Meeting of the Commission.

Section 2-664 of the Commission ordinance provides that the Commission shall hold its first meeting when there are a sufficient number of appointed Commissioners to constitute a quorum. Now that this threshold has been met, staff may proceed with scheduling the first Commission meeting.

Next Steps
Staff will continue to provide regular updates to the City Council to share progress on the implementation of the Commission ordinance.

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

EXHIBIT(S)

1. N/A
Submitted By: Kristine Ridge, City Manager
Approved By: Kristine Ridge, City Manager

City Council
13 –
4 7/18/2023

Community Development Agency
www.santa-ana.org/community-development
Item # 14
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 18, 2023
TOPIC: Pre-Commitment of Affordable Housing Funds for Illumination Foundation

AGENDA TITLE
Approve a pre-commitment of $2,021,319 in Homeless Housing, Assistance and Prevention funds, and eight (8) project-based vouchers for Illumination Foundation for the development of the Intergenerational Housing Project located at 918 N. Bewley Street (Contingent upon approval of Housing Authority)

RECOMMENDED ACTION

CITY COUNCIL
Authorize the City Manager to execute a pre-commitment letter with the Illumination Foundation for $2,021,319 in Homeless Housing, Assistance and Prevention funds and eight (8) project-based vouchers for the development of the Intergenerational Housing Project located at 918 N. Bewley Street, Santa Ana, CA 92703, (APN 198-231-10), subject to non-substantive changes approved by the City Manager and City Attorney.

COMMUNITY DEVELOPMENT COMMISSION RECOMMENDATION
At its regular meeting on June 28, 2023, the Community Development Commission recommended approval of Recommended Action # 1 for City Council and Recommended Action # 1 for the Housing Authority, by a vote of 6:0 with 1 vacant seat.

DISCUSSION
On October 25, 2022, the Community Development Agency (CDA) released a Request for Proposals (RFP # 22-119) to develop an affordable housing project for homeless transitional age youth in the City of Santa Ana with available funds from the Homeless Housing, Assistance and Prevention (HHAP) Program and Project-Based Voucher Program. The State Department of Housing and Community Development requires that the HHAP Round 1, 2, and 3 funds made available in this Request for Proposal (RFP) be used for transitional age youth, so, the RFP required that a portion of the units be designated for homeless transitional age youth (TAY) aged 18 to 24 years old. The project-based vouchers were included in the RFP to supplement the HHAP funds in order to successfully finance a project with supportive services.

The RFP was prepared in compliance with the City’s Affordable Housing Funds Policies and Procedures, published on the City’s website and Planet Bids, and emailed to nonprofit organizations who had previously expressed an interest in developing housing for youth experiencing homelessness in Orange County. The City received one (1)

City Council
14 –
1 7/18/2023

Pre-Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023

Page 2 ends

3 5
7 4
eligible proposal from Illumination Foundation prior to the deadline of November 22, 2022 at 4:00 p.m.

A Review Panel that consisted of the Homeless Services Division Manager, the Housing Division Manager, a Housing Programs Analyst, the Residential Construction Specialist, and a Senior Planner ensured compliance with the RFP requirements, used the proposal Scoring and Selection Criteria from the RFP, and reviewed the proposed project design for appropriateness for the proposed target population of TAY, compatibility with surrounding uses, cost effectiveness of construction, and appropriateness of the design and construction for low maintenance and long-term durability.

The Review Panel recommends the following award for this project:

Developer: Illumination Foundation
Project Name: Intergenerational Housing Project
Award Recommendation:

HHAP - Homeless Housing, Assistance and
Prevention Program Round 1, 2 and 3 Funds $2,021,319
Project-Based Vouchers Eight (8)
The pre-commitment letter for Illumination Foundation provides the enforceable funding commitment from the City for $2,021,319 in HHAP funds and eight (8) project-based vouchers for the development of the Intergenerational Housing Project located at 918 N.

Bewley Street, Santa Ana, CA 92703 (APN 198-231-10) (Exhibit 1) (the “Project”).

Among various other conditions in the pre-commitment letter, one of the primary conditions is that the developer must provide verification that it has secured all of its remaining financing for the development of the project. This should be in the form of other enforceable funding commitments in the project’s capital stack, which may include fundraising amounts currently committed by the developer, a commitment of affordable housing funds from the County of Orange, Orange County Housing Finance Trust, CalOptima Health, or any other funding source needed in the project’s capital stack to develop the Project and close on the financing. The pre-commitment letter is also conditional on the developer securing any and all permits and discretionary approvals that may be required for the project by the City. The pre-commitment does not obligate the City or any department thereof to approve any application or request for or take any other action in connection with any planning approval, permit, or other action necessary for the construction of the project. This will need to be completed before staff will return to the City Council for consideration of the Grant Agreement for this project.

In compliance with the City’s Affordable Housing Funds Policies and Procedures, Keyser Marston Associates (KMA) conducted a preliminary financial gap analysis to confirm the project’s underwriting, the financial gap, and other programmatic requirements related to the funding sources (Exhibit 2). KMA reviewed the developer’s

City Council
14 –
2 7/18/2023

Pre-Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023

Page 3 ends

3 5
7 4
estimates and projections of rents, expenses, reserves, and development costs in accordance with industry-standard underwriting guidelines.

Developer Background
Illumination Foundation is a 501(c)(3) organization that was founded in 2008 with the mission of disrupting the cycle of homelessness in Orange County. They are a dynamic organization with the experience and capacity to acquire, develop, and operate affordable and permanent supportive housing. Illumination Foundation’s experience consists of property acquisition, rehabilitation, conversion, design, and facility operation.

Their ability to develop new projects is reinforced by their ability to conduct operations for completed projects and implement successful programs within them. Their shelters and permanent housing operations involve complex logistics, contract management, accessibility compliance, facility maintenance, and high-quality service delivery.

In addition to development projects, Illumination Foundation operates extensively across several Southern California counties and is frequently called upon to assist communities with urgent needs, such as during the COVID-19 pandemic. During the pandemic, Illumination Foundation took an active role in the implementation of Project Roomkey in Orange County, providing support to converted sites that were created to mitigate the risks of COVID-19 to the most vulnerable.

Besides currently providing the operation of the City’s Navigation Center, Illumination Foundation has additionally completed several developments including the Fullerton Navigation Center (a 150-bed facility), the Riverside Recuperative Care (a 50-bed facility), and four family emergency shelters in the cities of Stanton and Anaheim.

Illumination Foundation also has experience in purchasing a motel for conversion to recuperative care and has partnered with LifeArk to utilize an innovative modular building system to develop an 18-unit prefabricated permanent supportive housing project in El Monte.

Illumination Foundation is a fiscally responsible and financially stable organization. In 2019, they experienced a 24% increase in revenue; in 2020, a 40% increase and more than a 50% growth in 2021. They transitioned from 90% reliance on non-recurring grants and limited donations in their earlier years to more than 80% of revenue from recurring government contracts and program fees as the organization has grown.

Illumination Foundation has additionally invested in ways to engage and retain individual donors.

Illumination Foundation has formed a qualified team of internal staff and developer partners to design a Project that supports the ongoing mission of the property. This includes Westgroup Designs as the architect and JLC Associates as one of three potential contractors who will bid on the project.

Westgroup Designs is known for providing exceptional design solutions for their clients and has an extensive portfolio of outstanding projects including Google’s Orange County headquarters. Their expertise in creating distinctive and effective residential communities, especially for the seniors, will be a great asset for this project.

City Council
14 –
3 7/18/2023

Pre-Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023

Page 4 ends

3 5
7 4
Founded in 1996, JLC Associates is a full-service Commercial General Contractor specializing in tenant improvement construction. They take pride in delivering successful, on time, in budget, high quality completion on each project. Easter Seals of Southern California, Memorial Care Health systems, Experian, and Ingram Micro are a few of their clients.

Project Site
Illumination Foundation is proposing to develop a site formerly used by The Lovers of the Holy Cross Sisters as a convent and preschool. Illumination Foundation acquired the site for $3.9 million. With a total lot area of 38,281 square feet (SF), the Project site is located along Bewley Street, between Hazard Avenue and W. 11th Street. The current property is comprised of two (2) two-story residential units nestled in the back totaling 7,032 SF; a 1,230 SF preschool building facing Bewley Street with an adjacent 586 SF shaded play area; and two storage sheds, each 148 SF connected by a 145 SF covered patio. The premises also boasts a luscious garden graced by numerous varieties of fruit trees. The proposed Project is within one half mile from multiple bus stops.

The property is located within the Garden Grove Unified School District boundaries.

The Planning and Building Agency conducted a preliminary assessment of the site and Project. The proposed site was originally developed as an eleven-unit apartment complex, which was modified to accommodate and be occupied by The Lovers of the Holy Cross Sisters. Illumination Foundation proposes interior renovations of the two existing apartment buildings, along with minor exterior alterations and new entry stairs, in order to rehabilitate the units and convert them back to multi-family residential with a total of eleven units. As proposed, there is no enlargement of the apartment buildings and no increase in the number of units as originally constructed. Moreover, the overall scope of work includes the proposed conversion of an existing storage shed into an Accessory Dwelling Unit (ADU) with two bedrooms. The Project is subject to additional administrative review and approval by the Planning and Building Agency through the City’s building plan check and permitting process. Staff understands that the Project as proposed is administrative and does not require discretionary entitlement approvals, and that it is not subject to additional off street parking due to its proximity to public transit.

Proposed Project
The proposed Project includes 11 units comprised of two (1) one-bedroom units, seven (7) two-bedroom units, and two (2) three-bedroom units; an ADU; and a preschool.

Illumination Foundation’s intergenerational campus will provide housing for homeless seniors and youth (TAY) with young children and preferential entry at the preschool for the young children to create a mutually supportive community. The proposed site plan includes 29 parking spaces with 20 spaces for the tenants and the ADU, and 9 spaces for the preschool including one accessible space and one loading parking stall. This village concept is expected to garner substantial synergistic benefits:
•Reduce social isolation for seniors.
•Encourage employment for parents deterred by childcare worries. •Provide high quality early education to children.

City Council
14 –
4 7/18/2023

Pre-Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023

Page 5 ends

3 5
7 4
Unit Mix
The target population for the Intergenerational Housing Project includes individuals experiencing chronic homelessness with a local preference for residents of the Santa Ana community. Eight (8) permanent supportive housing (PSH) units will be restricted to TAY families, two (2) shared housing PSH units will house senior citizens, and one unit will be reserved for an on-site manager. The ADU will be used as the Manager’s Unit and offices for programming. The proposed unit mix and rent restrictions are as follows:

Bedroom Size 30% AMI
(PSH)
50% AMI
(PSH)
Manager’s
Unit Total Units
One-Bedroom (TAY) 2
Two-Bedroom (TAY) 6
Two-Bedroom 1
Three-Bedroom (Senior) 2
TOTAL 8 2 1 11
Resident Services
Illumination Foundation will coordinate the delivery of all resident support services for the intergenerational campus. A comprehensive array of wraparound services will be provided by Illumination Foundation staff to ensure residents achieve healthy, independent, and fulfilling lives. Utilizing staff trained in best practices ranging from trauma informed care and critical time interventions to housing first, Illumination Foundation will ensure all residents have access to the services they need to thrive.

All residents of the intergenerational campus will receive access to case management services that will assess their needs and craft individualized care plans that utilize resident self-stated goals in accordance with a strength-based and client-centered model. Services related to these goals include income development and financial literacy, tenancy and other life skills, connections to appropriate mental health and medical services and substance use treatment, and transportation.

Illumination Foundation is positioned to provide high quality services because of strong partnerships with affiliated organizations and community partners. Residents will have the opportunity to be referred to the Illumination Foundation Medical Group for behavioral and physical health services; to a subcontractor, Straight Talk, for behavioral health group sessions; on-site medical coordination through nursing student interns; and parenting classes through The Priority Center and Olive Crest.

In addition to a range of community partners, Illumination Foundation will utilize innovative funding through CalAIM to provide programming like day habilitation courses covering topics such as budgeting, credit recovery, meal planning, anger management, and self-esteem building. Along with access to day habilitation courses, residents will also have access to enhanced care management. As part of the Enhanced Care Management program, enrolled residents will be assigned a lead care manager that will work with their insurance provider and personal care coordinator to facilitate clinical care.

City Council
14 –
5 7/18/2023

Pre-Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023

Page 6 ends

3 5
7 4
Beyond those services provided to all residents, children will be assigned a Children and Family Program Navigator who is responsible for overseeing the specific needs of children. Developmental screeners will be completed to ensure children are meeting important developmental benchmarks and staff will have access to a clinician to determine appropriate interventions when benchmarks are not met. The navigator will coordinate care for the children, such as referrals to internal and external resources, like regional center, literacy development, and children vision and dental clinics. Through our partnership with Children's Hospital of Orange County (CHOC), children are able to receive priority appointments to address their health needs.

Lastly, the unique characteristics of this development will present important service opportunities. The on-site preschool operated by Head Start will ensure that appropriately aged children will receive access to schooling and daycare. An on-site garden and chicken coop will allow for the development of community and wellness among residents. The intergenerational nature of the campus will allow for Illumination Foundation to cultivate peer mentorships between senior residents and transitional age youth or single parent residents. These onsite community activities help target the social isolation that can occur with senior populations.

Illumination Foundation has provided services to people experiencing homelessness in the Orange County area for 15 years and currently operates the City of Santa Ana’s Carnegie Navigation Center. This experience and strong working relationship with the City of Santa Ana positions Illumination Foundation to provide the exceptional services the residents of the intergenerational campus deserve.

Community Inclusion
The need for affordable housing opportunities for TAY and seniors experiencing homelessness has become critical. For projects to be successful both in terms of design, development, and implementation, community engagement must be an integral part of each phase of the process. Illumination Foundation has a demonstrated history of working cooperatively with surrounding neighborhoods in all phases of project development, as evidenced, for one example, by the development and planning of the Fullerton Navigation Center. The process involved months of extensive community outreach, as well as partnering with local community groups and organizations in order to address the concerns of Fullerton residents and businesses.

Illumination Foundation will take a reflective and strategic approach to community engagement. This begins with an in-depth understanding of the needs of the community, including the growing need for housing resources and the increasing number of people experiencing homelessness in Orange County. Throughout every step of the development process, Illumination Foundation, along with its development partners, will make active and concerted efforts to identify and reach out to all stakeholders relevant to the project.

In the early phase of development, this will include attending City Council meetings, scheduling town halls, and creating questionnaires and informative flyers to distribute to

City Council
14 –
6 7/18/2023

Pre-Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023

Page 7 ends

3 5
7 4
stakeholders and community members. Forays into the surrounding community will be made to canvass residents, neighborhood associations, community groups, and nearby businesses to provide information and allay concerns that stakeholders may have. Once the surrounding neighborhood has been canvassed, Illumination Foundation will facilitate town hall meetings, including both virtual and in-person. This will ensure accessibility and ample opportunities for stakeholder voices to be heard. Letters of support from stakeholders will be gathered as needed. Opportunities for focus groups and to answer questionnaires will be made available to individuals with lived experience of homelessness to provide their insight and inform the project. Frontline staff with experience working directly with clients will be afforded opportunities to provide feedback and engage in the program design and Project development process, as Illumination Foundation recognizes the critical importance of their perspective.

Throughout all stages of this Project, Illumination Foundation will seek input and establish collaborative efforts with agencies and nonprofits operating in and near the project, such as Mercy House Living Centers, Fresh Beginnings, and CityNet, among others. Along with development partners, Illumination Foundation will seek to allay any community concerns and incorporate critical feedback into the design and implementation that augments and strengthens their ability to serve the needs of the community. Through a partnership with Head Start, an affordable preschool resource will be available to the surrounding community.

Illumination Foundation will actively consider barriers that stakeholders may experience to attending scheduled town halls and other community engagement efforts, providing accommodations such as coordination of childcare, coordinating transportation, providing meeting locations that are convenient for stakeholders, and providing video or phone conferencing. To best reach all stakeholders, informative flyers will be produced in both English and Spanish, and additional linguistic accommodations will be made as needed. By utilizing direct outreach, social media, and newsletter marketing strategies, leveraging existing relationships and creating new ones, actively involving stakeholders in discussions, and implementing a Good Neighbor Plan, Illumination Foundation will ensure the level of community engagement necessary for a successful Project that benefits the target population and integrates seamlessly into the broader community.

ENVIRONMENTAL IMPACT
Pursuant to the Adaptive Reuse Ordinance (Ordinance No. NS-2874), the proposed project is found and determined to be consistent with the General Plan of the City of Santa Ana. Therefore, in accordance with the California Environmental Quality Act, the recommended action is exempt from further review under Section 15194 (Affordable Housing Exemption), as this project meets all the required criteria as a 100-percent affordable/permanent supportive housing development.

FISCAL IMPACT
The various agreements, including the grant agreement, is estimated to be finalized for City Council approval in FY 2023-24. Upon future approval of the grant agreement, funds will be budgeted and available as shown below. The Homeless, Housing Assistance and Prevention (HHAP) – Round 1 funds will be part of the proposed

City Council
14 –
7 7/18/2023

Pre-Commitment of Affordable Housing Funds for Illumination Foundation July 18, 2023

Page 8 ends

3 5
7 4
carryover of unspent funds which will be presented to City Council in September 2023 for part of this agreement.

Fiscal
Year
Accounting Unit
– Account # Fund Description Accounting Unit,
Account Description Amount
FY 23-24 12218715-69152
Homeless Housing,
Assistance and Prevention
funds Round 1
Loans & Grants $673,773.03
FY 23-24 12218716-69152
Homeless Housing,
Assistance and Prevention
funds Round 2
Loans & Grants $318,510.90
FY 23-24 12218717-69152
Homeless Housing,
Assistance and Prevention
funds Round 3
Loans & Grants $1,029,035.17
Total Grants $2,021,319.10

EXHIBIT(S)

1. Pre-Commitment Letter for Illumination Foundation

2. Preliminary Financial Gap Analysis by Keyser Marston Associates Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Kristine Ridge, City Manager

City Council
14 –
8 7/18/2023

ANTA ANA CITY COUNCIL
Valerie Amezcua
Mayor
[email protected]
Jessie Lopez
Mayor Pro Tem, Ward 3
[email protected]
Thai Viet Phan
Ward 1
[email protected]
Benjamin Vazquez
Ward 2
[email protected]
P
hil Bacerra
Ward 4
[email protected]
Johnathan Ryan Hernandez
Ward 5
[email protected]
Dav
id Penaloza
Ward 6
[email protected]
MAYOR
Valerie Amezcua

MAYOR PRO TEM
Jessie Lopez

COUNCILMEMBERS
Phil Bacerra
Johnathan Ryan Hernandez
David Penaloza
Thai Viet Phan
Benjamin Vazquez
20 Civic Center Plaza – M25
Santa Ana, California 92702
www.santa-ana.org

CITY MANAGER
Kristine Ridge

CITY ATTORNEY
Sonia R. Carvalho

CITY CLERK
Jennifer L. Hall
July 18, 2023
Pooja Bhalla, DNP, RN Sent via E-mail
Chief Executive Officer
Illumination Foundation
Re: Bewley Street - Intergenerational Affordable Housing Project 918 North Bewley Street, Santa Ana, CA 92703
Pre-Commitment Letter for a Grant of Homeless Housing, Assistance and Prevention Grant funds, and Eight (8) Project-Based Vouchers Dear Ms. Bhalla,
Illumination Foundation (“Developer”) requested financial assistance in connection with the proposed development of an eleven (11) unit intergenerational affordable housing project, with eight (8) units restricted to homeless transitional age youth (TAY) and two (2) units restricted to homeless senior citizens (the“Project”). The Project is to be located at 918 North Bewley Street, Santa Ana, CA 92703 (APN 198-231-10) (the “Site”).

The Project includes the rehabilitation of 2 two-story residential buildings that were previously utilized by The Lovers of the Holy Cross Sisters as a convent and preschool.

The Developer will convert the two residential buildings into eleven (11) rental units comprised of two (2) one-bedroom units, seven (7) two-bedroom units, and two (2) three- bedroom units. Two (2) one-bedroom units and six (6) two-bedroom units will be restricted to homeless TAY at or below 30% of the Area Median Income (“AMI”). The two (2) three- bedroom units will be structured as shared housing for homeless senior citizens at or below 50% of the AMI. One (1) two-bedroom unit will be unrestricted. The Project’s unit mix and rent restrictions are as follows:

EXHIBIT 1

City Council
14 –
9 7/18/2023

P a g e | 2

Bedroom Size 30% AMI
(PSH)
50% AMI
(PSH)
Manager’s
Unit Total Units
One-Bedroom (TAY) 2
Two-Bedroom (TAY) 6
Two-Bedroom 1
Three-Bedroom (Senior) 2
TOTAL 8 2 1 11

The Developer proposes to construct an Accessory Dwelling Unit ( “ADU”) on the Site.

The ADU will be used as office space for supportive services and programming functions.

An existing preschool building is also located on the Site. The Developer proposes to work with Head Start to renovate and operate the preschool space.

As proposed, there is no enlargement of the apartment buildings and no increase in the number of units as originally constructed. Moreover, the overall scope of work includes the proposed conversion of an existing storage shed into an ADU with two bedrooms.

The Project is subject to additional administrative review and approval by the Planning and Building Agency throughtheCity’sbuildingplancheckandpermittingprocess. Staff understands that the Project as proposed is administrative and does not require discretionary entitlement approvals, and that it is not subject to additional off street parking due to its proximity to public transit.

The City of Santa Ana (“City”)and the Housing Authority of the City of Santa Ana (“Housing Authority”)have reviewed the Developer's request for assistance, and at the City Council / Special Housing Authority meeting on July 18, 2023, the City Council and Housing Authority Board authorized and approved issuance of this pre-commitment letter evidencing the preliminary awardof(collectively,the“CityAssistance”):

- A grant in the maximum amount of $2,021,319 funded from Homeless Housing, Assistance and Prevention (“HHAP”) funds held by the City of Santa Ana for theProject(“ HHAP Grant”); and

- Eight (8) U.S. Department of Housing and Urban Development Project-Based Vouchers (“PBV”) from the Housing Authority of the City of Santa Ana.

This letter shall evidence the City’s pre-commitment of the City Assistance to the Developer for the Project subject to the conditions described below.

City Assistance:

The amount of the proposed City Assistance hasbeendeterminedbasedupontheCity’s review of the Developer's request for the receipt of the City Assistance and the development proforma and projected cash flows for the Project submitted by the Developer to the City (“Proforma”). The City Manager has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the City Assistance is not increased or extended.

EXHIBIT 1

City Council
14 –
10 7/18/2023

P a g e | 3

The City Assistance shall include the following general terms:

 The HHAP Grant shall be for a maximum amount of $2,021,319, or as much thereof as is disbursed for hard and soft costs in constructing the Project, provided from the HHAP funds.

 The provision of HHAP funds will be structured as a grant; therefore, no repayment is due to the City unless the Project is in default.

 Cost savings from the Project, if any, will be applied first to repay the City Assistance, as applicable.

 All other funding sources must be secured through enforceable funding commitments prior to disbursement of any of the HHAP Grant funds.

 An environmental review in compliance with the National Environmental Policy Act is required prior to entering into an Agreement to Enter into a Project-Based Vouchers Housing Assistance Payments Contract for the PBVs committed to the Project.

Project-Based Vouchers:

The basic terms of the award are as follows:

 Funding Source: The eight (8) PBVs will be funded exclusively out of the tenant- based voucher program annual budget authority received by the Housing Authority from the U.S. Department of Housing and Urban Development (“HUD”).

 Rents: The PBV Housing Assistance Payments ( “HAP”) Contract rents below are preliminary and contingent upon a reasonable rent determination to be conducted by the Housing Authority at the time of execution of the HAP Contract:

o One-Bedroom: $2,219
o Two-Bedroom: $2,665

In accordance with HUD regulations andSAHA’sAdministrati ve Plan, these rents are subject to review prior to the execution of a HAP contract.

 Annual Amount: The Project will receive PBVs for the eight (8) TAY units:

Unit Size
30% AMI
No. Units Proposed HAP
Contract Rent
One-Bedroom 2 $2,219
Two-Bedroom 6 $2,665

EXHIBIT 1

City Council
14 –
11 7/18/2023

P a g e | 4

The estimated maximum annual amount received under this award is $245,136.

These estimates assume 100% occupancy of the units over the twelve-month period with contract rent amounts limited to the current applicable Santa Ana Housing Authority Payment Standard.

 Term: The HAP Contract will have a term of twenty (20) years. Any time before the expiration of the HAP Contract, the Developer may request an additional twenty (20) years, subject to a determination by the Housing Authority that it is appropriate to continue providing permanent supportive housing for homeless TAY or to expand housing opportunities and HUD funding. Subsequent extensions are subject to the same requirements.

 Units Receiving Assistance: The maximum number of units receiving PBV assistance will be the eight (8) TAY units. The PBVs may not be utilized for the two (2) shared housing units.

 Local Preference: All individuals and families shall be homeless individuals with a preference for local residents from the City of Santa Ana based on the City’slocal residency screening criteria, subject to compliance with applicable fair housing laws.

General Provisions:

The City's obligation to provide the City Assistance to the Project is subject to each of the following conditions:

 Developer must provide proof that it has secured all of its remaining financing for the development of the Project, in particular the fundraising amounts currently committed by the Developer, in the form of enforceable funding commitments to develop the Project before staff will return to the City Council for consideration of the HHAP Grant Agreement.

 100% of the affordable units (less one (1) manager’s unit) in the Project will be restricted to homeless households as follows:

o The eight (8) TAY units will be restricted to homeless TAY households earning no more than 30% of the Area Median Income (“AMI”); and

o Each bedroom in the two (2) shared housing units will be restricted to homeless senior citizen households earning no more than 50% AMI.

 The Project consists of ten (10) permanent supportive housing units for homeless individuals and families. All individuals and families shall be referred from the Orange County Coordinated Entry System with a preference for local residents from the City of Santa Ana based on the City’slocalresidencyscreeningcriteria , subject to compliance with applicable fair housing laws.

EXHIBIT 1

City Council
14 –
12 7/18/2023

P a g e | 5

 The rent standards for the Project must comply with the strictest of the standards imposed by the funding sources contributed to the Project, as applicable. The HHAP rent standards are set forth as follows:

o The maximum affordable rent for the eight (8) TAY units will be set at the 30% AMI rent limit as published by the California Department of Housing and Community Development ( “HCD”) for the Multifamily Tax Subsidy Programs (“MTSP”); and

o For the three-bedroom shared housing units, the total rent payments must not exceed the 50% MTSP AMI rent limit for a three-bedroom unit.

Additionally,eachtenant’srentmustnotexceedthelesserof:

 One-third (1/3) of the 50% MTSP AMI rent for a three-bedroom unit; or

 Thirtypercent(30%)ofthe household’sactualincome (inclusive of Supplemental Security Income / State Supplementary Payment payments.

 Illumination Foundation will provide/pay for case management / social service expensesoutsideoftheProject’soperatingbudget.

 Illumination Foundation willcover anyoperating losses duringthe City’s 55-year affordability period.

 Given that Illumination Foundation is proposing to provide a loan to the Project from one of its affiliated entities, Illumination Foundation will incorporate a standstill provision that prohibits Illumination Foundation from foreclosing on the Project

 All provided funding and Project requirements shall conform to the City’smost recently adopted Affordable Housing Funds Policies and Procedures, unless alternative requirements are expressly provided in the executed Grant Agreement for the City Assistance or any other documents related to the development of the Project.

 Approval of all required entitlements and discretionary actions to allow the adaptive reuse and construction (as applicable) of an eleven (11) unit affordable housing complex, with ten (10) units restricted for homeless households, to be located at 918 N. Bewley Street, Santa Ana, CA 92703 (APN 198-231-10).

 The City's obligation to provide the City Assistance is and shall remain subject to all covenants, conditions, and restrictions set forth in the Grant Agreement, and in particular the City's analysis of the available funding sources and development and operating costs of the Project and the overall economic feasibility of the Project.

EXHIBIT 1

City Council
14 –
13 7/18/2023

P a g e | 6

 Review and approval of the Grant documents evidencing the City Assistance by the City Council including the Grant Agreement, Affordability Restrictions and Deed(s) of Trust, as reasonably necessary.

 Developer must provide proof that it has received and reviewed three general contractor bids, and that all subcontractors are competitively bid out. Specifically, the Developer must obtain three general contractor bids; all subcontractors must be competitively bid out; and the City must review and approve the final general contractor’s contract. The Project will be subject to State of California prevailing wage requirements.

 Execution of the HAP Contract andallnecessarydocumentsforthePBV’s.

 Compliance with applicable federal regulations set forth in 24 Code of Federal Regulations (CFR) Part 983, and all other federal, state, and local laws and regulations.

Developer, at its sole cost and expense, will be responsible for securing any and all permits and discretionary approvals that may be required for the Project by the City or any other federal, state, or local governmental entity having jurisdiction over the Property or Project. Notably, this pre-commitment letter shall not obligate the City or any department thereof to approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the construction, rehabilitation, installation or operation of the Project.

This pre-commitment letter for the Project will expire on July 18, 2025.

If you have any questions or require any additional information regarding this pre- commitment letter, please contact Judson Brown, Housing Division Manager, by telephone at (714) 667-2241 or by e-mail at [email protected] or Terri Eggers, Homeless Services Manager, by telephone at (714) 647-5378 or by e-mail at [email protected].

Sincerely,

On behalf of the City of Santa Ana:

________________________________
Kristine Ridge
City Manager

On behalf of the Housing Authority of
the City of Santa Ana:

________________________________
Michael L. Garcia
Executive Director
Attest:

_________________________________
Jennifer L. Hall
Clerk of the Council / Recording Secretary
EXHIBIT 1

City Council
14 –
14 7/18/2023

P a g e | 7

APPROVED AS TO FORM
Sonia R. Carvalho
City Attorney and Authority General Counsel

___________________________
By: Matthew Cody
Best, Best & Krieger
Special Counsel for the City and Housing Authority

EXHIBIT 1

City Council
14 –
15 7/18/2023

777 SOUTH FIGUEROA STREET, SUITE 2555  LOS ANGELES, CALIFORNIA 90017  PHONE 213.622.8095 2306002v3.SA.TRB
WWW.KEYSERMARSTON.COM 19090.018.028
ADVISORS IN:

Real Estate
Affordable Housing
Economic Development

BERKELEY
A. Jerry Keyser
Timothy C. Kelly
Debbie M. Kern
David Doezema

LOS ANGELES
Kathleen H. Head
James A. Rabe
Gregory D. Soo-Hoo
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz

SAN DIEGO
Paul C. Marra
Linnie A. Gavino
M

EMORANDUM
To: Terri Eggers, Homeless Services Division Manager
Judson Brown, Housing Division Manager
City of Santa Ana
From: Tim Bretz
Date: June 22, 2023
Subject: Bewley Street – Preliminary Financial Gap Analysis At your request, Keyser Marston Associates, Inc. (KMA) prepared a preliminary financial gap analysis for the project proposed to be developed at 918 North Bewley Street (Site) by Illumination Foundation (Developer). The Site is currently comprised of two residential buildings totaling 7,032 square feet of gross building area (GBA), a 1,230 square foot preschool building, and two storage sheds. The Developer proposes to rehabilitate the existing residential buildings and construct a new accessory dwelling unit on the Site. The Developer proposes to create a total of eleven (11) permanent supportive housing (PSH) units on the Site for the following purposes:

1. Eight (8) units restricted to homeless Transition Age Youth (TAY);

2. Two (2) three-bedroom units structured as shared housing and restricted to homeless senior citizens households; and

3. One (1) unrestricted unit for an on-site manager (Project).

The Developer is requesting financial assistance from the City of Santa Ana (City) for the purposes of developing the Project. The purpose of this KMA analysis is to provide a preliminary evaluation of the Developer’s request for assistance from the City.

EXHIBIT 2

City Council
14 –
16 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 2

2306002v3.SA.TRB
19090.018.028

EXECUTIVE SUMMARY
Estimated Financial Gap
The results of the KMA preliminary financial gap analysis are compared to the Developer’s financial assistance request in the following table:

KMA Developer Difference
Total Development Costs $7,339,000 $7,290,900 ($48,200) (Less) Outside Funding Sources (5,269,500) (5,269,500) -0- Financial Gap $2,069,500 $2,021,300 $48,200

As shown in the preceding table, KMA estimates the Project’s financial gap at $2.07 million, which is $48,200, or less than 3% higher than the Developer’s financial gap estimate. This differential can be considered inconsequential for a Project of this magnitude.

Operating Feasibility
The Developer estimates the Project’s stabilized net operating income (NOI) at approximately $37,000 in the Project’s first stabilized year of operation. In contrast, KMA estimates the Project’s stabilized NOI at negative $37,000 in Year 1 and not becoming positive until Year 10. Per discussions with the Developer, the Developer will cover any cash flow losses. This should be included as a provision in the City’s grant agreement and/or regulatory agreement.

Proposed Funding Sources
The following summarizes the proposed funding sources for the Project:

1. The Santa Ana Housing Authority (Housing Authority) proposes to provide eight (8) Section 8 Project-Based Vouchers (PBVs) that are allocated to the Housing Authority by the United States Department of Housing and Urban Development (HUD). The PBVs will be overlayed on the 8 TAY units – and cannot be utilized for the two shared housing units.

EXHIBIT 2

City Council
14 –
17 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 3

2306002v3.SA.TRB
19090.018.028

2. The Developer has secured $1 million in fundraising dollars.

3. The Developer has committed to securing at least $1.50 million in additional fundraising dollars for the Project.

4. Illumination Foundation, or one of it’s affiliated legal entities, proposes to provide an approximately $2.77 million loan to the Project.

PROJECT DESCRIPTION
The Developer currently owns the Site. The Site was formerly used by the Sisters of Holy Cross as a convent and preschool. The Site is improved with the following uses:

1. Two (2) two-story residential buildings totaling 7,032 square feet of GBA;

2. A 1,230 square foot preschool building; and

3. Multiple storage sheds and a covered patio.

The Developer proposes to complete the following scope of development:

1. Convert the two residential buildings into eleven rental units comprised of the following unit mix:
a. Two (2) one-bedroom units;
b. Seven (7) two-bedroom units; and
c. Two (2) three-bedroom units.

2. Construct an accessory dwelling unit (ADU) to be used as offices for programming.

3. Renovate the existing preschool building to continue as a preschool use. 1 1 Per the Developer, Head Start will be responsible for any costs associated with the preschool operation.

It is KMA’s understanding that costs for the preschool space were not included in the development budget information provided by the Developer.

EXHIBIT 2

City Council
14 –
18 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 4

2306002v3.SA.TRB
19090.018.028

4. The Project’s residential GBA is estimated at 7,473 square feet, inclusive of the new ADU space.

5. Twenty-nine (29) surface parking spaces will be provided consisting of:
a. Twenty (20) parking spaces for the residential component; and b. Nine (9) parking spaces for the preschool component.

6. The Project’s proposed affordability mix is as follows:
a. Two (2) one-bedroom units and six (6) two-bedroom units will be restricted to homeless TAY households that earn no more than 30% of the Area Median Income (AMI) as published by the California Department of Housing and Community Development (HCD) for Multifamily Tax Subsidy Programs (MTSP);
2 b. Two (2) three-bedroom units will be structured as shared housing for homeless senior citizens that earn no more than 50% MTSP AMI; and c. One two-bedroom unit will be unrestricted and reserved for an on-site manager.

FINANCIAL GAP ANALYSIS
KMA prepared a pro forma analysis to assist in evaluating the Developer’s proposal. The analysis is located at the end of this memorandum, and is organized as follows:

Table 1: Estimated Development Costs
Table 2: Stabilized Net Operating Income
Table 3: Financial Gap Calculation
Table 4: Cash Flow Analysis

2 Although the Project’s financing does not utilize Tax Credits, the City has elected to utilize the MTSP income and rent limits published by HCD.

EXHIBIT 2

City Council
14 –
19 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 5

2306002v3.SA.TRB
19090.018.028

Estimated Development Costs (Table 1)
KMA reviewed the Developer’s development cost estimates, and then independently prepared a pro forma analysis for the Project. The resulting development costs are estimated as follows:

PROPERTY ASSEMBLAGE COSTS
The Developer purchased the Site for $3.90 million. The Developer did not provide an appraisal for review. The City may want to require the Developer to provide an appraisal to ensure that the purchase price is consistent with the appraised value.

The Developer was required to pay the Seller’s broker fees, which were set at $156,000, or 4% of the purchase price. The total property assemblage costs are estimated at $4.06 million.

DIRECT COSTS
The direct cost estimates assume that the Project will be subject to State of California prevailing wage requirements. The direct costs applied in this analysis are based on estimates provided by the Developer and can be summarized as follows:

1. The demolition costs are estimated at $71,000.

2. The site improvement costs are estimated at $71,000.

3. The rehabilitation and new construction costs for the ADU are estimated at $2.09 million, or approximately $190,400 per unit.

4. The general conditions and contractor fee costs are estimated at $240,000, or 11% of construction costs.

5. The insurance costs are estimated at 1% of construction costs.

6. A direct cost contingency allowance equal to 15% of direct costs is provided, which is reasonable given the proposed scope of development.

KMA estimates the total direct costs at $2.88 million, or $261,400 per unit.

EXHIBIT 2

City Council
14 –
20 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 6

2306002v3.SA.TRB
19090.018.028

INDIRECT COSTS

1. The architecture, engineering and consulting costs are estimated at 3.5% of direct costs.

2. The Developer estimates the public permits and fees costs at $61,900, or approximately $5,600 per unit.

3. The taxes, insurance, legal and accounting costs are estimated at 1.5% of direct costs.

4. The Developer did not include an allowance for marketing and leasing costs.

5. The Developer Fee is set at $183,000, which is equal to 3% of net development costs (total development costs less the developer fee). This estimate is less than typical developer fee amounts for affordable housing projects.

6. KMA included an indirect cost contingency allowance equal to 5% of other indirect costs. The Developer did not include a separate indirect cost contingency allowance in their development budget.

KMA estimates the total indirect costs at $407,600.

FINANCING COSTS
The Developer intends to utilize the City’s financial assistance and other fundraising/grant funds to cover the Project’s construction costs. As such, the Developer assumes that the Project will not be subject to construction loan interest and/or construction loan fees during the construction period. KMA utilized this assumption in the pro forma analysis, and did not include any financing costs. If this assumption changes, the KMA analysis may need to be revised accordingly.

TOTAL DEVELOPMENT COSTS
As shown in Table 1, KMA estimates the total development costs at $7.34 million, which equates to approximately $667,200 per unit. This estimate is approximately $48,200, or less than 1% higher than the Developer’s estimate. This differential is primarily EXHIBIT 2

City Council
14 –
21 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 7

2306002v3.SA.TRB
19090.018.028

attributed to KMA including higher indirect costs, including an indirect cost contingency allowance, in the KMA pro forma analysis.

Stabilized Net Operating Income (Table 2)
The Project’s funding sources include a loan provided by the Developer, and fundraising/grant funds secured by the Developer. In addition, the City intends to utilize Homeless Housing, Assistance and Prevention (HHAP) grant funds allocated to the City by HCD. To that end, the City will impose the following affordability requirements on the Project:

INCOME RESTRICTIONS

1. The eight (8) TAY units will be restricted to homeless TAY households earning no more than the 30% MTSP AMI income limits as published by HCD.

2. For the three-bedroom shared housing units, each bedroom shall be restricted to a homeless senior citizen household earning up to the 50% MTSP AMI income limit.

RENT RESTRICTIONS

1. The maximum affordable rent for the eight TAY units will be set at the 30% MTSP AMI rent as published annually by HCD.3

2. For the three-bedroom shared housing units, the total rent payments must not exceed the 50% MTSP AMI rent for a three-bedroom unit. Additionally, each tenant’s rent must not exceed the lesser of:
a. One-third (1/3) of the 50% MTSP AMI rent for a three-bedroom unit; or b. 30% of the household’s actual income (inclusive of Supplemental Security Income (SSI) / State Supplementary Payment (SSP) payments.

3 Each of the TAY units will have a PBV, and thus, each TAY tenant can pay no more than 30% of their income towards rent. For underwriting purposes, KMA set the TAY tenant payments at 30% SSI.

EXHIBIT 2

City Council
14 –
22 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 8

2306002v3.SA.TRB
19090.018.028

ACHIEVABLE RENTAL INCOME
The Project’s rents must adhere to the most restrictive of the requirements imposed by the funding sources. The rents in this analysis are based on 2022 information published by HUD and HCD. The maximum allowable rents, net of the appropriate utility allowances, are estimated as follows:4
Rent Restriction – TAY Units
1-
Bedroom
Units
2-
Bedroom
Units
30% MTSP AMI / 30% SSI (PSH)
Number of Units 2 6
30% MTSP AMI Rent $728 $864
30% SSI Rent $306 $289
Applicable Rent $306 $289

Rent Restriction – Shared Housing Senior Units
3-
Bedroom
Units
50% MTSP AMI / 30% SSI (PSH)
Number of Units 2
50% MTSP AMI Rent – Three-Bedroom Unit $1,694
1/3 of 50% MTSP AMI Rent $565
30% of SSI for Studio Unit $313
Applicable Rent
Per Bedroom $313
Per Three-Bedroom Unit $939

4 Per the Developer, tenants will only pay for electricity. The basic electric utility charge as published by the Housing Authority on October 1, 2022 is estimated at: $27 for shared housing bedrooms; $34 for one- bedroom units; and $51 for two-bedroom units.

EXHIBIT 2

City Council
14 –
23 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 9

2306002v3.SA.TRB
19090.018.028

ESTIMATED EFFECTIVE GROSS RESIDENTIAL INCOME
KMA estimates the residential effective gross income (EGI) at approximately $239,000 based on the following assumptions:

1. The gross rental income is estimated at $50,600.

2. The PBV subsidy overhang income is estimated at $215,000 based on the following payment standards:
a. $2,219 for one-bedroom units; and
b. $2,665 for two-bedroom units.

3. A vacancy and collection allowance equal to 10% of gross rental income is assumed, which equates to $26,600.

ESTIMATED RESIDENTIAL OPERATING EXPENSES
KMA estimates the Project’s residential operating expenses at approximately $107,200 based on the following assumptions:

1. The general operating expenses are estimated at $9,200 per unit per year. This is within the range for similar small affordable housing projects.

2. KMA assumes the Developer will apply for the property tax abatement that is accorded to non-profit housing organizations that own and operate apartment units that are restricted to households earning less than 80% of the Area Median Income. The Developer assumes that the Project will not be subject to any property tax assessment override cost.

3. The Developer did not include supportive services costs in their pro forma. Per discussions with the Developer, the Developer will provide / pay for supportive services expenses outside of the Project’s operating budget. The Developer estimates these costs at $120,000 per year; however, the City should memorialize this concept in the City’s grant agreement and/or regulatory agreement.

EXHIBIT 2

City Council
14 –
24 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 10

2306002v3.SA.TRB
19090.018.028

4. The Developer provided an allowance for replacement reserve deposits at $545 per unit per year. This is a reasonable allowance given the small size of the Project.

RESIDENTIAL STABILIZED NET OPERATING INCOME
The Project’s residential EGI is estimated at $239,000, and the operating expenses are estimated at $107,200. This results in an estimated residential stabilized NOI of $131,800.

TOTAL PROJECT STABILIZED NET OPERATING INCOME
In addition to the $131,800 in residential NOI, the Developer intends to lease the preschool space to Head Start. The Developer estimates the preschool lease payments at $5,000 per month, or $60,000 per year. When the preschool lease payments are added to the residential NOI, KMA estimates the Project’s total NOI at $191,800.

Financial Gap Calculation
The financial gap is estimated by deducting the available outside funding sources from the Project’s total development costs. The outside funding sources anticipated to be received by the Project are described below.

AVAILABLE FUNDING SOURCES
Illumination Foundation Loan
The Developer, or one of its affiliated legal entities, proposes to provide a loan to the Project. The proposed terms of the Illumination Foundation Loan include the following:

1. Interest-only payments based on a variable interest rate set at the Wall Street Journal (WSJ) Prime Rate. The WSJ Prime Rate is currently set at 8.25%.

2. The Developer anticipates repaying this loan through a capital campaign.

Therefore, no repayment term was specified. However, the Developer did not provide the loan documents for review.

EXHIBIT 2

City Council
14 –
25 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 11

2306002v3.SA.TRB
19090.018.028

KMA estimates the Developer will need to provide a $2.77 million loan to the Project.

Based on an 8.25% interest rate, the annual interest rate payments would equate to $228,500 per year.

Fundraising / Grant Funds
The Developer proposes to utilize the following additional funding sources for the Project:

1. The Developer has secured $1 million in fundraising dollars.

2. The Developer has committed to securing at least $1.50 million in additional fundraising dollars for the Project.

TOTAL AVAILABLE FUNDING SOURCES
As shown in Table 3, KMA estimates the outside funding sources available to the Project at $5.27 million.

ESTIMATED FINANCIAL GAP
Based on the preceding analysis, KMA estimates the Project’s financial gap as follows:

Total Development Costs $7,339,00
(Less) Total Available Outside Funding Sources (5,269,500) Financial Gap $2,069,500
Per Unit $188,100

As shown in the table above, KMA estimates that the Project exhibits a $2.07 million financial gap. In comparison, the Developer is requesting $2.02 million in financial assistance from the City. This represents a $48,200, or less than 3% differential, which can be considered inconsequential for a Project of this scope.

EXHIBIT 2

City Council
14 –
26 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 12

2306002v3.SA.TRB
19090.018.028

CASH FLOW ANALSYIS
KMA also conducted a cash flow analysis to evaluate the Project’s operating feasibility during the City’s 55-year affordability period.

The following describes the basic cash flow assumptions:

1. Year 1 is based on the pro forma rent and expense assumptions presented in the stabilized NOI analysis (Table 2).

2. Additional revenue and expense assumptions are as follows:
a. The affordable rental income and PBV subsidy income are escalated at

2.5% per year.
b. The general operating expenses and replacement reserve deposits are escalated at 3.5% per year.
c. The property taxes are escalated at 2.0% per year.
d. The preschool lease revenue is escalated at 3.0% per year.

3. KMA set the interest-only payments on the Illumination Foundation Loan at $228,500 per year.

As shown in Table 4, the Project’s cash flow after debt service is negative in Years 1 - 9.

KMA estimates that the operating deficits during this initial 9-year period total approximately $180,000. In comparison, the Developer’s cash flow assumes that the Project’s net cash flow remains positive after the Project reaches stabilization in Year 2.

Per discussions with the Developer, the Developer will cover any cash flow losses. This should be included as a provision in the City’s grant agreement and/or regulatory agreement.

EXHIBIT 2

City Council
14 –
27 7/18/2023

Terri Eggers / Judson Brown, City of Santa Ana June 22, 2023 Bewley Street – Preliminary Financial Gap Analysis Page 13

2306002v3.SA.TRB
19090.018.028

CONCLUSIONS / RECOMMENDATIONS
The following summarizes the conclusions of the KMA analysis:

1. Based on the currently available information, it is the KMA conclusion that that Developer’s request for $2.02 million in financial assistance from the City is supported by the Project’s economics.

2. If the Developer secures additional outside funding sources not envisioned in this analysis, the City’s financial assistance amount should be decreased commensurately.

3. The Developer did not include case management / social services expenses in their pro forma submittal. As such, KMA assumes that the Developer will provide/pay for these services outside of the Project’s operating budget. The City should memorialize this concept as a provision in the City’s grant agreement and/or regulatory agreement.

4. KMA estimates that the Project’s net cash flow may be negative during the first nine years of operations. Per discussions with the Developer, the Developer will cover any operating losses during the City’s 55-year affordability period. This concept should be included as a provision in the City’s grant agreement and/or regulatory agreement.

5. Given that the Developer is proposing to provide a loan to the Project from one of its affiliated legal entities, the City may want to require the Developer to incorporate a standstill provision in the Illumination Foundation Loan documents that prohibits the Illumination Foundation from foreclosing on the Project.

6. The Project may generate significant cash flow after the Illumination Foundation Loan is repaid. The Housing Authority may want to review the Project’s operating information prior to renewing the PBV contract at the end of the initial PBV term to ensure that eight (8) PBVs are still required by the Project.

7. The Developer did not provide an appraisal for review. The City may want to require the Developer to provide an appraisal to ensure that the purchase price is consistent with the appraised value.

EXHIBIT 2

City Council
14 –
28 7/18/2023

TABLE 1

ESTIMATED DEVELOPMENT COSTS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I. Property Assemblage Costs
Property Acquisition Costs 1 $3,900,000
Seller Broker Fees 4.0% Purchase Price 156,000
Total Property Assemblage Costs $4,056,000
II. Direct Costs 2
Demolition $71,000
Site Improvements 71,000
Rehabilitation & New Construction Costs 3 11 Units $190,400 /Unit 2,094,400 General Conditions / Profit 11% Construction Costs 240,000 Insurance 1% Construction Costs 24,000
Direct Cost Contingency 15% Other Direct Costs 375,000
Total Direct Costs 11 Units $261,400 /Unit $2,875,400
III. Indirect Costs
Architecture, Engineering & Consulting 3.5% Direct Costs $100,600 Public Permits & Fees 4 11 Units $5,630 /Unit 61,900
Taxes, Insurance, Legal & Accounting 1.5% Direct Costs 43,100 Marketing/Leasing 11 Units $0 /Unit 0
Developer Fee 5 3% Net Dev. Costs (Exc. Developer Fee) 183,000 Soft Cost Contingency Allowance 5% Other Indirect Costs 19,000 Total Indirect Costs $407,600
IV. Total Financing Costs 6 $0
V. Total Rehabilitation & New Const Costs 11 Units $312,600 /Unit $3,439,000 Total Development Costs 11 Units $667,200 /Unit $7,339,000 1 2
3 4
5 6
Based on Developer's estimates. The estimates assume that prevailing wage requirements will be imposed on the Project.

Based on Developer estimate. An appraisal was not provided for review.

Based on Developer estimate. City staff should verify the accuracy of this estimate.

Based on Developer estimate.

The Developer did not include any financing costs in their development budget. If the Illumination Foundation Loan accrues interest during the development period, the addition of these interest costs (estimated at $228,500/year) may increase the Project's financial gap.

Based on Developer estimate. Includes the costs to rehabilitate the existing residential buildings and to newly construct an ADU on the Site.

Per Developer, Head Start will be responsible for any costs associated with the preschool building.

Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; Pf; trb
EXHIBIT 2

City Council
14 –
29 7/18/2023

TABLE 2

BEWLEY STREET PSH PROJECT
I. Effective Gross Residential Income 1
2-Bedroom Manager's Unit 1 Unit @ $0 /Month $0
1-Bedroom Units (TAY PSH) - PBV 2 2 Units @ $306 /Month 7,300 2-Bedroom Units (TAY PSH) - PBV 2 6 Units @ $289 /Month 20,800 3-Bedroom Units (Senior PSH - Shared Hsg) 3 2 Units @ $939 /Month 22,500 Section 8 Subsidy
1-Bedroom Units (TAY PSH) - PBV 2 Units @ $1,906 /Month 45,700 2-Bedroom Units (TAY PSH) - PBV 6 Units @ $2,352 /Month 169,300 (Less) Vacancy and Collection 10.0% Gross Income (26,600) Total Effective Gross Residential Income $239,000
II. Residential Operating Expenses
General Operating Expenses 11 Units @ $9,200 /Unit $101,200 Property Taxes 4 0
Supportive Services 5 11 Units @ $0 /Unit 0
Replacement Reserve 11 Units @ $545 /Unit 6,000
Total Residential Operating Expenses 11 Units @ $9,700 /Unit ($107,200) III. Residential Stabilized Net Operating Income $131,800 IV. Preschool Income 6 $60,000
V. Total Project Stabilized Net Operating Income $191,800 1 2
3 4
5 6 Based on Developer estimate.

Assumes the Developer will apply for the property tax welfare exemption accorded to non-profit housing organizations that own and operate apartment units restricted to households earning no more than 80% AMI.

The two 3-bedroom units will be structured as shared housing for senior citizens. KMA assumes that the City will restrict each bedroom's rent to the lesser of: 1/3 of the 50% MTSP AMI rent for a 3-bdrm unit or 30% of each household's income.

SANTA ANA, CALIFORNIA
Per Developer, tenants will only pay for electricity. KMA deducted a utility allowance for Basic Electricity based on the utilility allowance schedule published by the Santa Ana Housing Authority on October 1, 2022: $27 for shared housing bedrooms; $34 for one-bedroom units; and $51 for two-bedroom units.

Based on Orange County 2022 Incomes distributed by HUD. As pertinent, the rents are based on rents published in 2022 by HCD for MTSP programs and 30% CA SSI.

The Developer did not include any supportive service costs in the pro forma. KMA assumes the Developer will provide/pay for case management/social services outside of the Project's operating expenses.

STABILIZED NET OPERATING INCOME
Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; Pf; trb
EXHIBIT 2

City Council
14 –
30 7/18/2023

TABLE 3

FINANCIAL GAP CALCULATION

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I. Available Funding Sources 1
Illumination Foundation Loan Amount $2,769,500
Developer - Committed Fundraising $1,000,000
Developer - Additional Fundraising $1,500,000
Total Available Funding Sources $5,269,500
II. Financial Gap Calculation
Total Development Costs $7,339,000
(Less) Total Available Funding Sources (5,269,500)
Total Financial Gap 11 Units $188,100 /Unit $2,069,500
1 Based on Developer estimate.

See TABLE 1
Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; Pf; trb
EXHIBIT 2

City Council
14 –
31 7/18/2023

TABLE 4

CASH FLOW ANALYSIS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
Year 1
Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
I. Gross Residential Income 1
Tenant-Paid Income $50,600 $51,865 $53,162 $54,491 $55,853 $57,249 $58,680 PBV Subsidy Income 215,000 220,375 225,884 231,531 237,320 243,253 249,334 (Less) Vacancy Allowance (26,560) (27,224) (27,905) (28,602) (29,317) (30,050) (30,801) Effective Gross Base Income $239,040 $245,016 $251,141 $257,420 $263,855 $270,452 $277,213 II. Residential Operating Expenses 2
General Operating Expenses $101,200 $104,742 $108,408 $112,202 $116,129 $120,194 $124,401 Property Taxes 0 - - - - - - Supportive Services 0 - - - - - - Replacement Reserve 6,000 6,210 6,427 6,652 6,885 7,126 7,376 Total Operating Expenses $107,200 $110,952 $114,835 $118,855 $123,014 $127,320 $131,776 III. Residential Net Operating Income $131,840 $134,064 $136,306 $138,565 $140,841 $143,132 $145,437 Preschool Income 60,000 61,800 63,654 65,564 67,531 69,556 71,643 IV. Project Net Operating Income $191,840 $195,864 $199,960 $204,129 $208,371 $212,688 $217,080 (Less) Interest Only Pmts - Illumination Foundation Loan 3 (228,484) (228,484) (228,484) (228,484) (228,484) (228,484) (228,484) V. Net Cash Flow ($36,644) ($32,620) ($28,524) ($24,355) ($20,113) ($15,796) ($11,404) Nominal Dollars $16,247,243 $2,524,000 NPV @ 6% Discount Rate 1 2
3 The affordable rents and PBV subsidy are assumed to increase by 102.5%/year. Assumes Year 1 is at stabilization.

General operating expenses/supportive services/replacement reserve deposits are assumed to increase by 103.5%/year, and property taxes at 102.0%/year.

Based on a $2,770,000 loan balance and an 8.25% interst rate. Per discussions with the Developer, KMA assumes that this loan will be paid off within the first 10 years of operations through a capital campaign.

Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; CF; trb
EXHIBIT 2

City Council
14 –
32 7/18/2023

TABLE 4

CASH FLOW ANALYSIS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I.

Gross Residential Income 1
Tenant-Paid Income
PBV Subsidy Income
(Less) Vacancy Allowance
Effective Gross Base Income
II.

Residential Operating Expenses 2
General Operating Expenses
Property Taxes
Supportive Services
Replacement Reserve
Total Operating Expenses
III. Residential Net Operating Income
Preschool Income
IV. Project Net Operating Income
(Less) Interest Only Pmts - Illumination Foundation Loan 3 V. Net Cash Flow
Nominal Dollars
1 2
3 The affordable rents and PBV subsidy are assumed to increase by 102.5%/year. Assumes Year 1 is at stabilization.

General operating expenses/supportive services/replacement reserve deposits are assumed to increase by 103.5%/year, and property taxes at 102.0%/year.

Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 $60,147 $61,651 $63,192 $64,772 $66,392 $68,051 $69,753 $71,496 255,567 261,957 268,506 275,218 282,099 289,151 296,380 303,789 (31,571) (32,361) (33,170) (33,999) (34,849) (35,720) (36,613) (37,529) $284,143 $291,247 $298,528 $305,991 $313,641 $321,482 $329,519 $337,757 $128,755 $133,261 $137,925 $142,753 $147,749 $152,920 $158,272 $163,812 - - - - - - - - - - - - - - - - 7,634 7,901 8,177 8,464 8,760 9,066 9,384 9,712
$136,388 $141,162 $146,103 $151,216 $156,509 $161,987 167,656 $173,524 $147,755 $150,085 $152,426 $154,775 $157,132 $159,496 $161,863 $164,233 73,792 76,006 78,286 80,635 83,054 85,546 88,112 90,755 $221,548 $226,091 $230,712 $235,410 $240,186 $245,041 $249,975 $254,989 (228,484) (228,484) (228,484) $0 $0 $0 $0 $0
($6,936) ($2,393) $2,228 $235,410 $240,186 $245,041 $249,975 $254,989 Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; CF; trb
EXHIBIT 2

City Council
14 –
33 7/18/2023

TABLE 4

CASH FLOW ANALYSIS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I.

Gross Residential Income 1
Tenant-Paid Income
PBV Subsidy Income
(Less) Vacancy Allowance
Effective Gross Base Income
II.

General operating expenses/supportive services/replacement reserve deposits are assumed to increase by 103.5%/year, and property taxes at 102.0%/year.

Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 $73,284 $75,116 $76,994 $78,919 $80,892 $82,914 $84,987 $87,112 311,384 319,169 327,148 335,327 343,710 352,303 361,110 370,138 (38,467) (39,428) (40,414) (41,425) (42,460) (43,522) (44,610) (45,725) $346,201 $354,856 $363,728 $372,821 $382,141 $391,695 $401,487 $411,524 $169,545 $175,479 $181,621 $187,978 $194,557 $201,367 $208,414 $215,709 - - - - - - - - - - - - - - - - 10,052 10,404 10,768 11,145 11,535 11,939 12,357 12,789 $179,597 $185,883 $192,389 $199,123 $206,092 $213,305 $220,771 $228,498 $166,604 $168,973 $171,338 $173,698 $176,049 $178,390 $180,716 $183,026 93,478 96,282 99,171 102,146 105,210 108,367 111,618 114,966 $260,082 $265,255 $270,509 $275,844 $281,260 $286,756 $292,334 $297,993 $0 $0 $0 $0 $0 $0 $0 $0
$260,082 $265,255 $270,509 $275,844 $281,260 $286,756 $292,334 $297,993 Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; CF; trb
EXHIBIT 2

City Council
14 –
34 7/18/2023

TABLE 4

CASH FLOW ANALYSIS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I.

Gross Residential Income 1
Tenant-Paid Income
PBV Subsidy Income
(Less) Vacancy Allowance
Effective Gross Base Income
II.

General operating expenses/supportive services/replacement reserve deposits are assumed to increase by 103.5%/year, and property taxes at 102.0%/year.

Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 $89,289 $91,522 $93,810 $96,155 $98,559 $101,023 $103,548 $106,137 379,391 388,876 398,598 408,563 418,777 429,246 439,978 450,977 (46,868) (48,040) (49,241) (50,472) (51,734) (53,027) (54,353) (55,711) $421,813 $432,358 $443,167 $454,246 $465,602 $477,242 $489,173 $501,403 $223,259 $231,073 $239,160 $247,531 $256,195 $265,161 $274,442 $284,048 - - - - - - - - - - - - - - - - 13,237 13,700 14,179 14,676 15,189 15,721 16,271 16,841 $236,495 $244,773 $253,340 $262,207 $271,384 $280,882 $290,713 $300,888 $185,317 $187,585 $189,827 $192,039 $194,218 $196,360 $198,460 $200,514 118,415 121,968 125,627 129,395 133,277 137,276 141,394 145,636 $303,732 $309,553 $315,454 $321,435 $327,495 $333,635 $339,854 $346,150 $0 $0 $0 $0 $0 $0 $0 $0
$303,732 $309,553 $315,454 $321,435 $327,495 $333,635 $339,854 $346,150 Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; CF; trb
EXHIBIT 2

City Council
14 –
35 7/18/2023

TABLE 4

CASH FLOW ANALYSIS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I.

Gross Residential Income 1
Tenant-Paid Income
PBV Subsidy Income
(Less) Vacancy Allowance
Effective Gross Base Income
II.

General operating expenses/supportive services/replacement reserve deposits are assumed to increase by 103.5%/year, and property taxes at 102.0%/year.

Year 32 Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39 $108,790 $111,510 $114,298 $117,155 $120,084 $123,086 $126,163 $129,318 462,251 473,808 485,653 497,794 510,239 522,995 536,070 549,472 (57,104) (58,532) (59,995) (61,495) (63,032) (64,608) (66,223) (67,879) $513,938 $526,786 $539,956 $553,455 $567,291 $581,473 $596,010 $610,910 $293,989 $304,279 $314,929 $325,951 $337,359 $349,167 $361,388 $374,036 - - - - - - - - - - - - - - - - 17,430 18,040 18,672 19,325 20,002 20,702 21,426 22,176 $311,419 $322,319 $333,600 $345,276 $357,361 $369,869 $382,814 $396,212 $202,518 $204,467 $206,355 $208,178 $209,930 $211,605 $213,196 $214,698 150,005 154,505 159,140 163,914 168,832 173,897 179,114 184,487 $352,523 $358,972 $365,496 $372,093 $378,762 $385,501 $392,310 $399,185 $0 $0 $0 $0 $0 $0 $0 $0
$352,523 $358,972 $365,496 $372,093 $378,762 $385,501 $392,310 $399,185 Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; CF; trb
EXHIBIT 2

City Council
14 –
36 7/18/2023

TABLE 4

CASH FLOW ANALYSIS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I.

Gross Residential Income 1
Tenant-Paid Income
PBV Subsidy Income
(Less) Vacancy Allowance
Effective Gross Base Income
II.

General operating expenses/supportive services/replacement reserve deposits are assumed to increase by 103.5%/year, and property taxes at 102.0%/year.

Year 40 Year 41 Year 42 Year 43 Year 44 Year 45 Year 46 Year 47 $132,550 $135,864 $139,261 $142,742 $146,311 $149,969 $153,718 $157,561 563,209 577,289 591,721 606,514 621,677 637,219 653,149 669,478 (69,576) (71,315) (73,098) (74,926) (76,799) (78,719) (80,687) (82,704) $626,183 $641,838 $657,884 $674,331 $691,189 $708,469 $726,180 $744,335 $387,128 $400,677 $414,701 $429,215 $444,238 $459,786 $475,879 $492,534 - - - - - - - - - - - - - - - - 22,952 23,756 24,587 25,448 26,338 27,260 28,214 29,202 $410,080 $424,433 $439,288 $454,663 $470,576 $487,046 $504,093 $521,736 $216,103 $217,405 $218,596 $219,668 $220,613 $221,422 $222,088 $222,599 190,022 195,722 201,594 207,642 213,871 220,287 226,896 233,703 $406,125 $413,127 $420,190 $427,310 $434,484 $441,710 $448,983 $456,301 $0 $0 $0 $0 $0 $0 $0 $0
$406,125 $413,127 $420,190 $427,310 $434,484 $441,710 $448,983 $456,301 Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; CF; trb
EXHIBIT 2

City Council
14 –
37 7/18/2023

TABLE 4

CASH FLOW ANALYSIS

BEWLEY STREET PSH PROJECT

SANTA ANA, CALIFORNIA
I.

Gross Residential Income 1
Tenant-Paid Income
PBV Subsidy Income
(Less) Vacancy Allowance
Effective Gross Base Income
II.

General operating expenses/supportive services/replacement reserve deposits are assumed to increase by 103.5%/year, and property taxes at 102.0%/year.

Year 48 Year 49 Year 50 Year 51 Year 52 Year 53 Year 54 Year 55 $161,500 $165,537 $169,676 $173,918 $178,266 $182,722 $187,290 $191,973 686,215 703,370 720,955 738,978 757,453 776,389 795,799 815,694 (84,771) (86,891) (89,063) (91,290) (93,572) (95,911) (98,309) (100,767) $762,943 $782,017 $801,567 $821,606 $842,147 $863,200 $884,780 $906,900 $509,773 $527,615 $546,082 $565,195 $584,976 $605,451 $626,641 $648,574 - - - - - - - - - - - - - - - - 30,224 31,282 32,376 33,510 34,682 35,896 37,153 38,453 $539,997 $558,897 $578,458 $598,704 $619,659 $641,347 $663,794 $687,027 $222,946 $223,120 $223,109 $222,902 $222,488 $221,853 $220,986 $219,873 240,714 247,935 255,373 263,034 270,925 279,053 287,425 296,047 $463,660 $471,055 $478,482 $485,937 $493,413 $500,907 $508,411 $515,921 $0 $0 $0 $0 $0 $0 $0 $0
$463,660 $471,055 $478,482 $485,937 $493,413 $500,907 $508,411 $515,921 Prepared by: Keyser Marston Associates, Inc.

File name: Bewley Street_6 6 23; CF; trb
EXHIBIT 2

City Council
14 –
38 7/18/2023

Public Works Agency
www.santa-ana.org/public-works
Item # 15
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 18, 2023
TOPIC: Amend Blanket Purchase Orders for Painting Services

AGENDA TITLE
Amend the Blanket Order Contract with 1 Solorio, Inc., GDL Painters, Inc., Mear Construction, Inc., Prime Painting Contractors, Inc., and US National Corp. by Increasing the Annual Aggregate Amount Not to Exceed $1,500,000 for the Remainder of the Contract Term (Specification No. 20-153) (General Fund and Non-General Fund)

RECOMMENDED ACTION
Amend the blanket purchase order contracts with 1 Solorio, Inc., GDL Painters, Inc., Mear Construction, Inc., Prime Painting Contractors, Inc., and US National Corp. for painting services to increase the annual amount by $1,300,000, for a revised annual aggregate amount not to exceed $1,500,000, for the remainder of the current one-year term expiring March 15, 2024, and two one-year renewal periods, subject to non- substantive changes approved by the City Manager and City Attorney.

DISCUSSION
On March 16, 2021, at the conclusion of a competitive bidding process, the City Council approved blanket purchase order contracts with 1 Solorio, Inc., GDL Painters, Inc., Mear Construction, Inc., Prime Painting Contractors, Inc., and US National Corp. for a two-year period from March 16, 2021 to March 15, 2023, with provisions for three one- year renewal options. The services provided through these contracts are used by various City departments for painting services. With recent and ongoing renovations, building improvements, and vandalism, painting services have become more frequent.

Staff is requesting to increase the blanket purchase order contracts for painting services by an annual aggregate amount of $1,300,000, for a revised annual aggregate amount not to exceed $1,500,000 for the remainder of the contract term.

FISCAL IMPACT
There is no fiscal impact at this time. The Public Works Agency (PWA) will follow the established on-call services process during the FY 2023-2026 contractual term for requesting fiscal review and authorization. Prior to utilizing any of these on-call services, PWA staff must receive Finance and Management Services Agency approval of funding and accounts to ensure that funds are available under the $1,500,000 aggregate limit of these contracts. Upon successful completion of this fiscal review, a

City Council
15 –
1 7/18/2023

Amend Blanket Purchase Order for Painting Services
July 18, 2023

Page 2 ends

3 5
8 3
corresponding Notice to Proceed containing specific scope and maximum expenditure for the task order will be issued to the contractor.

Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager

City Council
15 –
2 7/18/2023

Public Works Agency
www.santa-ana.org/public-works
Item # 16
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 18, 2023
TOPIC: Fremont Elementary and Spurgeon Intermediate SRTS Project

AGENDA TITLE
Approve a Budget Reallocation and Award a Construction Contract to Onyx Paving Company, Inc. in the Amount of $5,204,000 for the Fremont Elementary and Spurgeon Intermediate Safe Routes to School Project, with an Estimated Project Delivery Cost of $6,505,000 (Project No. 20-6964) (Non-General Fund)

RECOMMENDED ACTION

1. Authorize budget reallocation of $1,656,000 in unspent Roadway Maintenance and Rehabilitation Account (SB-1) from the Fairview Avenue Rehab, the South City Limit to Segerstrom Avenue, FY 2020-21 (No. 21-6978) Project to construction funds for the Fremont Elementary and Spurgeon Intermediate Safe Routes to School (Project No. 20-6964).

2. Award a construction contract to Onyx Paving Company, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $5,204,000, subject to change orders (not-to-exceed up to 25% of the base bid amount) in accordance with the Greenbook: Standard Specifications for Public Works Construction, for construction of the Fremont Elementary and Spurgeon Intermediate Safe Routes to School Project, for a term beginning July 18, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to non-substantive changes approved by the City Manager and the City Attorney.

3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $6,505,000, which includes $5,204,000 for the construction contract, $780,600 for contract administration, inspection and testing, and a $520,400 project contingency for unanticipated or unforeseen work.

4. Approve an amendment to the FY 2023-24 Capital Improvement Program to include $1,656,000 in unspent Road Maintenance and Rehabilitation Account (SB-1) funds.

City Council
16 –
1 7/18/2023

Fremont Elementary and Spurgeon Intermediate SRTS Project July 18, 2023

Page 2 ends

3 5
7 8

5. Determine that the recommended actions are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER-2020-32 was filed for the project.

DISCUSSION
The Fremont Elementary and Spurgeon Intermediate Safe Routes to School (SRTS) project will improve pedestrian and bicyclist safety with the construction of traffic improvements along the suggested safe routes for the Fremont Elementary and Spurgeon Intermediate schools (Exhibit 1). The scope of work includes construction of curb extensions at crosswalks and intersections, traffic circles at intersections, sidewalks, driveway approaches, curbs and gutters, speed humps, bikeways, street lights, traffic signal installations, traffic signal modifications, utility improvements, irrigation, and landscaping. The expected benefits from these improvements are the increase in confidence of parents to allow more students to safely walk or ride their bicycles to and from schools, parks, and other destination points, and improve the quality of life for all users.

Public Outreach and Contractor Participation
To provide an opportunity for local vendors to submit bids, the City notified a total of 1,435 regional vendors via PlanetBids, many of which are Santa Ana based. Sixty-one vendors requested bidding documents, and a total of three bids were received.

As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on April 10, April 17, April 24, and May 1, 2023. The project was also advertised in PlanetBids from April 10, 2023 through May 8, 2023. Bids were received electronically via PlanetBids on May 8, 2023.

Bid Results Summary
RANK BIDDER’S NAME LOCATION BASE BID
1 Onyx Paving Company, Inc. Anaheim, CA $5,204,000
2 Excel Paving Company Long Beach, CA $5,398,974
3 All American Asphalt Corona, CA $6,390,312
A total of three bids were received and all were deemed responsive. Onyx Paving Company, Inc. submitted the lowest responsive base bid in the amount of $5,204,000 (Exhibit 2). As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, Staff recommends awarding the construction contract to Onyx Paving Company, Inc., in the amount of the base bid totaling $5,204,000 (Exhibit 3).

City Council
16 –
2 7/18/2023

Fremont Elementary and Spurgeon Intermediate SRTS Project July 18, 2023

Page 3 ends

3 5
7 8
Onyx Paving Company, Inc. is currently the contractor for two projects with the City of Santa Ana. These projects include the Local Street Preventative Maintenance and the Residential Street Repair Program. These projects mark the first time Onyx Paving Company, Inc. has engaged in work with the City of Santa Ana, establishing their project history.

Project Delivery
To deliver a complete project, in addition to the construction contract bid amount, the estimated total project delivery cost includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management, workmanship, and quality; and materials testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $5,204,000.

Project Item Total
Construction Contract Bid Amount $5,204,000
Construction Administration, Inspection, Testing $780,600 Contract Contingencies $520,400

TOTAL ESTIMATED CONSTRUCTION DELIVERY
COST $6,505,000
Approval of this item will amend the FY 2022/23 Capital Improvement Program to include the Fremont Elementary and Spurgeon Intermediate SRTS (Exhibit 5).

ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review. Categorical Exemption Environmental Review No. ER- 2020-32 was filed for the project.

FISCAL IMPACT
Project No. 20-6964 is the number assigned to the funding for tracking of all expenditures to deliver the construction of this project. As indicated in the Cost Analysis, the total construction delivery cost of the project is $6,505,000 which includes construction, contract administration, inspection, testing, and contingency. If City Council approves recommendation No. 1, available budget will be reallocated from the Fairview Avenue Rehabilitation Project, FY 20/21 (No. 21-6978).

The proposed contract enables Staff to authorize change orders (not-to-exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public Works Construction, if necessary, for contingencies. Staff expects to utilize other available Public Works appropriations if a contingency becomes necessary to complete the project. If there are no other available appropriations, then Staff will return to City Council with a project update and recommendations.

City Council
16 –
3 7/18/2023

Fremont Elementary and Spurgeon Intermediate SRTS Project July 18, 2023

Page 4 ends

3 5
7 8
The following table summarizes the funds budgeted and available for expenditure to deliver construction of this project. Funding will be available in the FY 23-24 budget through the Carry Forward (CF) process and funding for subsequent fiscal years will be included in the proposed budgets for City Council consideration.

Fiscal
Year
Accounting Unit –
Account No.
(Project No.)
Fund
Description
Accounting Unit –
Account No.

Description
Amount

EXISTING PROJECT BUDGET
2023-24
(CF)
14817614-66220
(20-6964)
Traffic System
Management
Grant – ATP –
SB1
Augmentation
Active
Transportation
Program
Augmentation –
Improvements Other
Than Buildings
$4,849,000

BUDGET REALLOCATION
2023-24
(CF)
05917665-66220
(From Proj. 21-6978
to 20-6964)
Select Street
Construction
HUTA Gas Tax –
RMRA,
Improvements Other
Than Buildings
$1,656,000
Total: $6,505,000

EXHIBIT(S)

1. Location Map

2. Bid Proposal

3. Construction Contract

4. Cost Analysis

5. CIP Project Sheet
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager

City Council
16 –
4 7/18/2023

SANTA ANA BLVDEDINGER AV WARNER AV

LA VETA AV
1ST ST
1ST ST 1ST ST

SEGERSTROM AV
17TH ST

CIVIC CENTER DRSANTA CLARA AVSANTA CLARA AVFAIRHAVEN AVGARDEN GROVEBLVDEDINGER AV

EDINGER AV

WESTMINSTER AVMC FADDEN AVMC FADDEN AVDYER RDWARNER AV

MACARTHUR BLVD

City Council
16 –
5 7/18/2023

EXHIBIT 2

City Council
16 –
6 7/18/2023

EXHIBIT 2

City Council
16 –
7 7/18/2023

EXHIBIT 2

City Council
16 –
8 7/18/2023

EXHIBIT 2

City Council
16 –
9 7/18/2023

EXHIBIT 2

City Council
16 –
10 7/18/2023

EXHIBIT 2

City Council
16 –
11 7/18/2023

EXHIBIT 3

City Council
16 –
12 7/18/2023

City Council
16 –
13 7/18/2023

City Council
16 –
14 7/18/2023

City Council
16 –
15 7/18/2023

City Council
16 –
16 7/18/2023

City Council
16 –
17 7/18/2023

City Council
16 –
18 7/18/2023

City Council
16 –
19 7/18/2023

City Council
16 –
20 7/18/2023

City Council
16 –
21 7/18/2023

EXHIBIT 4
Construction Contract 5,204,000.00 $
Contract Administration, Inspection and Testing 780,600.00 $ Contingencies 520,400.00 $
TOTAL ESTIMATED CONSTRUCTION COSTS 6,505,000.00$
CONSTRUCTION OF PROJECT NO. 20-6964 (ATPSB1L-5063(197)):

Fremont Elementary and Spurgeon Intermediate SRTS

COST ANALYSIS

City Council
16 –
22 7/18/2023

City Council
16 –
23 7/18/2023

City Council
16 –
24 7/18/2023

Public Works Agency
www.santa-ana.org/public-works
Item # 17
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 18, 2023
TOPIC: Residential Street Repair Program FY 2022-23

AGENDA TITLE
Award a Construction Contract to Onyx Paving Company, Inc. in the Amount of $1,672,000 for the Residential Street Repair Program FY 22/23, with an Estimated Project Delivery Cost of $1,783,257 (Project Nos. 23-7543 and 24-6700) (Non-General Fund)

RECOMMENDED ACTION

1. Authorize the reallocation of unspent Measure M2 funds from various projects:
$9,660 from Pavement Management Project No. 21-6898, $103,895 from Pavement Management Project No. 23-6898, $142,715 from Local Street Preventative Maintenance Project No. 18-6907, and $30,000 from City Wide Sewer Trench Repair PH II Project No. 22-6901, for a total of $286,270 to the Residential Street Repair Program Project No. 24-6700, completing the project’s funding requirement.

2. Award a construction contract to Onyx Paving Company, Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $1,672,000, subject to change orders (not to exceed 25% of the base bid amount) in accordance with the Greenbook: Standard Specifications for Public Works Construction, for construction of the Residential Street Repair Program FY 22/23 Project, for the term beginning July 18, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to non-substantive changes approved by the City Manager and the City Attorney.

3. Approve the Project Cost Analysis for a total estimated construction delivery cost of $1,783,257, which includes $1,672,000 for the construction contract, $32,521 for contract administration, inspection, and testing, and a $78,736 project contingency for unanticipated or unforeseen work.

4. Determine that the recommended actions are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER-20-23-70 was filed for the project.

City Council
17 –
1 7/18/2023

Residential Street Repair Program FY 2022-23
July 18, 2023

Page 2 ends

3 5
8 0

DISCUSSION
The City has identified the need to undertake the street repairs around Heninger Park (Exhibit 1). The scope of work includes removing localized concrete pavement and replacing with new concrete pavement including dowels, cracked seals, existing cracks in concrete pavement, the replacement of damaged curb, sidewalks, curb ramps, driveway approach, new cross gutters, adjusting utilities, and signing and striping. Once completed, the newly repaired streets will provide a safe form of transportation and pedestrian mobility for our citizens.

Public Outreach and Contractor Participation
To provide an opportunity for local vendors to submit bids, the City notified a total of 1,310 regional vendors via PlanetBids, many of which are Santa Ana based. Two vendors requested bidding documents and a total of two bids were received. No bids were received from any Santa Ana contractors.

As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on March 29, 2023 and April 5, 2023. The project was also advertised in PlanetBids from March 30, 2023 through April 18, 2023. Bids were received electronically via PlanetBids on April 18, 2023.

Bid Results Summary
RANK BIDDER’S NAME LOCATION BASE BID
1 Onyx Paving Company, Inc. Anaheim, CA $1,672,000
2 Excel Paving Co. Long Beach, CA $2,339,760
A total of two bids were received, and all were deemed responsive. Onyx Paving Company, Inc. submitted the lowest responsive base bid in the amount of $1,672,000 (Exhibit 2). As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, Staff recommends awarding the construction contract to Onyx Paving Company, Inc., in the amount of the base bid totaling $1,672,000 (Exhibit 3).

Onyx Paving Company, Inc. is currently the contractor for two projects with the City of Santa Ana. These projects include the Local Street Preventative Maintenance and the Residential Street Repair Program. These projects mark the first time Onyx Paving Company, Inc. has engaged in work with the City of Santa Ana, establishing their project history.

Project Delivery
To deliver a complete project, in addition to the construction contract bid amount, the estimated total project delivery cost includes construction administration, inspection, and

City Council
17 –
2 7/18/2023

Residential Street Repair Program FY 2022-23
July 18, 2023

Page 3 ends

3 5
8 0
testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes construction management; inspection of the Contractor’s work to ensure contract compliance, workmanship, and quality; and materials testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $1,783,257.

Project Item Total
Construction Contract Bid Amount $1,672,000
Construction Administration, Inspection, Testing $32,521 Contract Contingencies $78,736
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $1,783,257

FISCAL IMPACT
Project No. 23-7543 and 24-6700 is the number assigned to the funding for tracking of all expenditures to deliver the construction of this project. As indicated in the Cost Analysis, the total estimated construction delivery cost of the project is $1,783,257, which includes construction, contract administration, inspection, testing, and contingency. If City Council approves recommendation No. 1, the available budget will be reallocated from Project No. 21-6898, Project No. 23-6898, Project No. 18-6907, and Project No. 22-6901 to fund this contract.

The proposed contract enables staff to authorize change orders (not-to-exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public Works Construction, if necessary, for contingencies. Staff expects to utilize other available Public Works appropriations if a contingency becomes necessary to complete this project. If there are no other available appropriations, then Staff will return to City Council with a project update and recommendations.

The following table summarizes the funds budgeted and available in FY 22/23 to deliver construction of this project. Existing funding and Additional Budget/Budget Reallocation will be available in the FY 23-24 budget through the Carry Forward (CF) process and any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 24-25.

City Council
17 –
3 7/18/2023

Residential Street Repair Program FY 2022-23
July 18, 2023

Page 4 ends

3 5
8 0
Fiscal
Year
Accounting Unit
- Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account No.

Description
Amount

EXISTING BUDGET
2023-24
(CF)
13518783-66220
(23-7543)
Community
Development
Block Grant
CDBG Programs,
Improvements Other
Than Buildings
$1,496,987

ADDITIONAL BUDGET/BUDGET REALLOCATION
2023-24
(CF)
03217662-66220
(21-6898 to 24-
6700)
Measure M-
Street
Construction
Measure M2 Local
Fairshare St.

Improvements Other
Than Building
$ 9,660
2023-24
(CF)
03217662-66220
(23-6898 to 24-
6700)
Measure M-
Street
Construction
Measure M2 Local
Fairshare St.

Improvements Other
Than Building
$103,895
2023-24
(CF)
03217662-66220
(18-6907 to 24-
6700)
Measure M-
Street
Construction
Measure M2 Local
Fairshare St.

Improvements Other
Than Building
$ 142,715
2023-24
(CF)
03217662-66220
(22-6901 to 24-
6700)
Measure M-
Street
Construction
Measure M2 Local
Fairshare St.

Improvements Other
Than Building
$ 30,000
Additional Budget/Budget Reallocation Total $ 286,270
Complete Total $1,783,257

EXHIBIT(S)

1. Location Map

2. Bid Proposal

3. Construction Contract

4. Cost Analysis
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager

City Council
17 –
4 7/18/2023

PWA

SANTA ANA

PUBLIC WORKS AGENCY
Project No. 23-7543:

Residential Street Repair Program FY 22/23
Exhibit 1

City Council
17 –
5 7/18/2023

CITY OF SANTA ANA

PROPOSAL
PROJECT NO.: 23-7543
RESIDENTIAL STREET REPAIR PROGRAM FY 22-23

BID PROPOSAL
TO: CITY COUNCIL OF THE CITY OF SANTA ANA
FROM: ONYX PAVING COMPANY, INC.

REQUIREMENT:

The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule:

Item Description Qty
I Unclassified Excavation* 320
2 Removal of 6" PCC at 1,540
Various Locations*
3 Construct 6" PCC with (3- 1,540
day) Cure including Dowels
4 Crushed Miscellaneous Base 500
(CMB)*
5 Crack Seal with Deery Super 13,000
Gray*
6 PCC Sidewalk (T=4")* 1,600
7 PCC Curb and Gutter (Type 1,800
A-2-6)*
8 PCC Cross Gutter* 2,300
9 PCC Curb Ramp* 4,100
10 PCC Driveway Approach * 1,400
II Root Shave* I
12 Adjust Survey Monument to I
Finished Grade
13 Adjust Sewer/Drainage 4
Manhole Frame & Cover to
Finished Grade
P-1 of P-17
Unit
CY
CY
CY
TN
LF
SF
LF
SF
SF
SF
EA
EA
EA
Unit Price
$
i/:1.O
$
11 :2
$11 � i,�io
$

54. 00
$

3.00 $
I\. 00
$
1:2.00
$11. 00
$
I 'I. 00
$

19. j0
$
J. oooI
$2,000
$
J, 200
Amount
$
I 3 4-, 'i 00
$
:1, u'I, r8o
$
. ,, ""'I.I' , 1(/ 1 v vv
$
:21, 000
$
31, (}()0
$
17, �00
$
/;),t/, &00
$
��/ /00
$
71, C/00
$
2&, �00
$
2,000
$
2,000
$
t, �00
Exhibit 2

City Council
17 –
6 7/18/2023

Item
14 15
16 17
18 19
20 CITY OF SANTA ANA

PROPOSAL
PROJECT NO.: 23-7543
RESIDENTIAL STREET REPAIR PROGRAM FY 22-23
Description Qty Unit Unit Price Amount
Adjust Water Valve Frame & 7 EA \;;, ;).00
$
Cover to Finished Grade /� '100
Adjust Sewer Cleanout Frame 3 EA $
� I ;).00
$
and Cover to Finished Grade v, vOO
Project Adveriisement Sign I EA $
c1, JOO :J., ).00
Signing and Striping I LS $
'I-� 920
$
tf g, 9 .20
Construction Permit I LS $6,300 $6,300
Stamped PCC Pavement 53 CY $
1,300
$
(Including Rebar) (; g, 'I 00
PCC Concrete Band 4 CY $
:i, 000
$
(Including Rebar) g,ooo
1��'7"',-1(P
TOTAL BASE BID $ I, 51!;, 000. 00
\, lJ)l2,, ooo- oo
The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add-alternate bid items (if any). * The quantity for this bid item is shown for bid comparison only. This bid item shall not be subject to the "25%" limit as stated in Section 3-2 of the Standard Specifications. The actual amount for this item will be dictated by the actual quantity used, and the Agency reserves the right to increase or decrease the quantity of this item accordingly. i" This bid item is considered a Specialty Item per Section 3-2 of the Standard Specifications.

TIME FOR COMPLETION OF IMPROVEMENTS AND LIQUIDATED DAMAGES The undersigned bidder hereby proposes to complete the Work for the total base bid amount shown above, within number (45) working days after the commencement date stated in the Notice to Proceed.

The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $2,500 per calendar day.

P-2 of P-17
Exhibit 2

City Council
17 –
7 7/18/2023

EXHIBIT 3

City Council
17 –
8 7/18/2023

City Council
17 –
9 7/18/2023

City Council
17 –
10 7/18/2023

City Council
17 –
11 7/18/2023

City Council
17 –
12 7/18/2023

City Council
17 –
13 7/18/2023

EXHIBIT 4
Construction Contract 1,672,000.00 $
Contract Administration, Inspection and Testing 32,521.00 $ Contingencies 78,736.00 $
TOTAL ESTIMATED CONSTRUCTION COSTS 1,783,257.00$
CONSTRUCTION OF PROJECT NO. 23-7543: Residential Street Repair Program FY 22-23

COST ANALYSIS

City Council
17 –
14 7/18/2023

Public Works Agency
www.santa-ana.org/public-works
Item # 18
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 18, 2023
TOPIC: New Water Well Drilling at Washington Site

AGENDA TITLE
Award a Construction Contract to Best Drilling and Pump, Inc. in the Amount of $2,978,524 for the Washington Well Improvements: Well Drilling (Phase 1), with an Estimated Project Delivery Cost of $3,432,274 (Project No. 19-6423) (Non-General Fund)

RECOMMENDED ACTION

1. Award a construction contract to Best Drilling and Pump Inc., the lowest responsible bidder, in accordance with the base bid in the amount of $2,978,524, subject to change orders (not-to-exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public works Construction, for construction of the Washington Well Improvements: Well Drilling (Phase 1) Project, for the term beginning July 18, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to non-substantive changes approved by the City Manager and the City Attorney.

2. Approve the Project Cost Analysis for a total estimated construction delivery cost of $3,432,274 which includes $2,978,524 for the construction contract, $100,000 for contract administration, inspection, and testing, and a $353,750 project contingency for unanticipated or unforeseen work.

DISCUSSION
The ultimate Washington Well Site Improvements Project includes the construction of a new groundwater well, including piping and electrical equipment, a well building, and a chemical storage building located at the intersection of Washington Avenue and Penn Way (Exhibit 1). The project creates an additional local water supply, which improves the City' s long-term resilience, and closes the projected gap between future demand and available supply by adding over 4,000 acre-feet per year to the City's pumping capacity. This promotes less reliance on imported water, which, in turn, reduces wholesale water costs. The project will also address low-pressure deficiencies, improve reliability, and increase flexibility within the City' s water system.

City Council
18 –
1 7/18/2023

Washington Well Improvements: Well Drilling
July 18, 2023

Page 2 ends

3 5
8 1
Phase 1 of the project includes drilling of the well bore hole to a depth of 1,300 feet below ground surface, installation of 18-inch stainless steel well casing and screen, filter packs, geophysical surveys, water quality testing, installation of construction sound walls, and all other incidental work as specified in the construction plans and contract documents.

Project Funding
As part of a continual effort to maintain fiscal responsibility, staff has sought additional funding sources to complete the project. In 2021, the City was awarded $750,000 in federal Bureau of Reclamation grant funds, $740,000 of which is available for project construction costs. Additional grant funds in the amount of $3,394,743 are anticipated to be awarded to the project during the current calendar year via the State of California Department of Water Resources Proposition 1 Implementation Grant Program.

Public Outreach and Contractor Participation
To provide an opportunity for local vendors to submit bids, a Notice Inviting Bids was advertised in the Orange County Register newspaper on March 17 and March 24, 2023.

The project was also advertised on PlanetBids, and bids were received electronically via PlanetBids on April 27, 2023.

The City notified a total of 940 regional vendors via PlanetBids, 42 of which are Santa Ana based. Twenty-eight vendors requested bidding documents. A total of four bids were received. However, no bids were received from Santa Ana contractors.

Bid Results Summary
Rank Bidder’s Name Location Base Bid
1 Best Drilling and Pump, Inc. Colton, CA $2,978,524
2 Nor-Cal Pump & Well Drilling, Inc. Yuba City, CA $3,197,304 3 Layne Christensen Company, Inc. Redlands, CA $3,500,998 NR South West Pump & Drilling, Inc. Coachella, CA $2,774,283 Of the four bids received, one was deemed not responsive. Best Drilling and Pump, Inc. submitted the lowest responsive base bid, in the amount of $2,978,524 (Exhibit 2).

As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract to Best Drilling and Pump, Inc., in the amount of the base bid totaling $2,978,524 (Exhibit 3).

Best Drilling and Pump, Inc. has not performed as a prime contractor in the City of Santa Ana within the past five years. A reference check was made and received good

City Council
18 –
2 7/18/2023

Washington Well Improvements: Well Drilling
July 18, 2023

Page 3 ends

3 5
8 1
reviews from other public agencies regarding quality of work performed by Best Drilling and Pump, Inc.

Project Delivery
To deliver a complete project, in addition to the construction contract bid amount, the estimated total project delivery cost includes construction administration, inspection, and testing, along with an allowance for contingencies to account for unexpected or unforeseen conditions. Construction administration and inspection includes the following: construction management and materials testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $3,432,274.

Project Item Total
Construction Contract Bid Amount $2,978,524
Construction Administration, Inspection, Testing $100,000 Contract Contingencies $353,750
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $3,432,274

ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, a Mitigated Negative Declaration was prepared for the project and was filed with the document number 2021110169.

FISCAL IMPACT
Project No. 19-6423 is the number assigned to the funding for tracking of all expenditures to deliver the construction of this project. As indicated in the Cost Analysis, the estimated total construction delivery cost of the project is $3,432,274 which includes the construction contract, contract administration, inspection, testing, and project contingency.

Funds for this project have been transferred from previously appropriated funds for the East Pump Station Security Fencing Project (19-6433) to the Washington Well Improvements: Well Drilling (Phase 1) Rebid Project (19-6423).

The proposed contract enables Staff to authorize a change order (not-to-exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public Works Construction, if necessary, for contingencies. Staff expects to utilize other available Public Works appropriations if a contingency becomes necessary to complete the project. If there are no other available appropriations, then Staff will return to the City Council with a project update and recommendations.

The following table summarizes the funds budgeted and available in current FY 23-24 for expenditure to deliver construction of this project. Any remaining balances not

City Council
18 –
3 7/18/2023

Washington Well Improvements: Well Drilling
July 18, 2023

Page 4 ends

3 5
8 1
expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 24-25.

Fiscal
Year
Accounting Unit
- Account No.
(Project No.)
Fund
Description
Accounting Unit -
Account No.

Description
Amount
Prior Authorized Funds (Transfers)
2023-24
06617647-66301
(From 19-6433
To 19-6423)
Acquisition &
Construction
Water Utility Capital
Projects, Water Capital
Project
$600,034
Existing Project Budget
2023-24 06617647-66301
(19-6423)
Acquisition &
Construction
Water Utility Capital
Projects, Water Capital
Project
$2,092,240
2023-24 16417641-66220
(19-6423)
PWA
Enterprise
Capital
Grants
WaterSMART-
Watershed Mgmt Prog,
Improvements Other
Than Buildings
$740,000
Total $3,432,274

EXHIBIT(S)

1. Location Map

2. Bid Proposal

3. Construction Contract

4. Cost Analysis

5. CIP Project Sheet
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager

City Council
18 –
4 7/18/2023

SANTA ANA BLVD

WASHINGTON AVE

SEVENTEENTH ST

MAIN ST

LINCOLN AVE
P
E
N
N
W
AY
N
S
A
N
TIA
G
O
S
T

PUBLIC WORKS AGENCY

SANTA ANA
PWA

VICINITY MAP

PROJECT LOCATION
PROJECT NO. 19-6423
WELL DRILLING (PHASE 1) REBID
WASHINGTON WELL IMPROVEMENTS:

NOT TO SCALE

CITY COUNCIL

AGENDA DATE
JULY 18, 2023

City Council
18 –
5 7/18/2023

City Council
18 –
6 7/18/2023

City Council
18 –
7 7/18/2023

City Council
18 –
8 7/18/2023

City Council
18 –
9 7/18/2023

EXHIBIT 3

City Council
18 –
10 7/18/2023

City Council
18 –
11 7/18/2023

City Council
18 –
12 7/18/2023

City Council
18 –
13 7/18/2023

City Council
18 –
14 7/18/2023

City Council
18 –
15 7/18/2023

City Council
18 –
16 7/18/2023

City Council
18 –
17 7/18/2023

EXHIBIT 4

COST ANALYSIS
CONSTRUCTION OF PROJECT NO. 19-6423: Washington Well Improvements:

Well Drilling (Phase 1) Rebid
Project Item Total
Construction Contract $2,978,524.00
Construction Administration, Inspection, Testing $100,000.00 Contingencies $353,750.00
TOTAL CONSTRUCTION DELIVERY COST $3,432,274.00

City Council
18 –
18 7/18/2023

EXHIBIT 5
CITY OF SANTA ANA FY22/23CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT TITLE:

Washington Well Site Improvements
PROJECT DESCRIPTION:

Drilling a new groundwater well.

PROJECT NEED:

A new well will help increase the reliability, performance and customer experience.

PROJECT CATEGORY:

Utility/Drainage/Lighting Improvements
Water

LOCATION MAP
PROJECT COSTS FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 Construction Progress Pay 600,033.16 - - - - - -
TOTAL - - - - - -600,033.16
SOURCE OF FUNDS FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29

WTR UTY CAPITAL

PROJECTS
- - - - - -600,033.16
TOTAL 600,033.16 - - - - - -
AGENCY: DIVISION: CONTACT: DATE:

Public Works Water Resources James Burk, Senior Civil Engineer 18-July-2023 52 City Council
18 –
19 7/18/2023

Public Works Agency
www.santa-ana.org/public-works
Item # 19
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 18, 2023
TOPIC: Project W-Bus Shelter

AGENDA TITLE
Approve an Appropriation Adjustment and Award a Construction Contract to M.S.

Construction Management Group in the Amount of $428,420 for the Project W-Bus Shelter, with an Estimated Project Delivery Cost of $535,525 (Project No. 22-6999) (General Fund)

RECOMMENDED ACTION

1. Approve an amendment to the FY 2023-24 Capital Improvement Program to include $282,053 in construction funds for the Project W-Bus Shelter (Project No. 22-6999).

2. Approve an appropriation adjustment recognizing $114,000 in FY 2023-24 in Senate Bill 1, Solutions for Congested Corridors Program (SCCP) grant funds in the Selected Street Construction, State Grants-Indirect revenue account, and appropriate the same amount to Select Street Construction, Improvements Other Than Building expense account. (Requires five affirmative votes)

3. Award a construction contract to M.S. Construction Management Group, the lowest responsible bidder, in accordance with the base bid in the amount of $428,420, subject to change orders (not-to-exceed 25% of the base bid) in accordance with the Greenbook: Standard Specifications for Public Works Construction, for the construction of the Project W-Bus Shelter, for a term beginning July 18, 2023, and ending upon project completion, and authorize the City Manager to execute the contract subject to non-substantive changes approved by the City Manager and the City Attorney.

4. Approve the Project Cost Analysis for a total estimated construction delivery cost of $535,525, which includes $428,420 for the construction contract, $42,842 for contract administration, inspection, and testing, and a $64,263 project contingency for unanticipated or unforeseen work.

5. Determine the recommended actions are exempt from further review in accordance with the California Environmental Quality Act as Categorical Exemption Environmental Review No. ER-2021-182 was filed for the project.

City Council
19 –
1 7/18/2023

Award Construction Contract with M.S. Construction Management Group July 18, 2023

Page 2 ends

3 5
8 5

DISCUSSION
The City has identified the need to undertake the installation of new bus shelters throughout all Santa Ana Neighborhoods (Exhibit 1). The scope of work includes excavation, grading, removal, and replacement of Portland cement concrete, and installation of new bus shelters. After completion, the newly installed bus shelters will provide protection from various weather conditions for citizens as they wait for the bus at any bus stop location throughout Santa Ana.

Public Outreach and Contractor Participation
To provide an opportunity for local vendors to submit bids, the City notified a total of 900 regional vendors via PlanetBids, many of which are Santa Ana based. Five vendors requested bidding documents and a total of two bids were received. Bids were not received from any Santa Ana contractors. As legally required, a Notice Inviting Bids was advertised in the Orange County Register newspaper on April 21, 2023 and April 28, 2023. The project was also advertised in PlanetBids from April 21, 2023 through May 10, 2023. Bids were received electronically via PlanetBids on May 10, 2023.

Bid Results Summary
Rank Bidder’s Name Location Base Bid
1 M.S. Construction Management Group Dana Point, CA $428,420 2 ND Construction Co., Inc. Long Beach, CA $523,183
A total of two bids were received, and both were deemed responsive. M.S.

Construction Management Group submitted the lowest responsive base bid in the amount of $428,420 (Exhibit 2). As specified in the bid documents, the lowest bid shall be determined on the basis of the Base Bid. Based on the bid analysis and a contractor’s reference check, staff recommends awarding the construction contract to M.S. Construction Management Group, in the amount of the base bid totaling $428,420 (Exhibit 3).

M.S. Construction Management Group has not performed as a prime contractor in the City of Santa Ana within the past five years. A reference check was made and good reviews were from other public agencies regarding the quality of work performed by M.S. Construction Management Group.

City Council
19 –
2 7/18/2023

Award Construction Contract with M.S. Construction Management Group July 18, 2023

Page 3 ends

3 5
8 5
management, workmanship, and quality; and materials testing. As indicated in the Cost Analysis (Exhibit 4) and as summarized in the table below, the estimated total construction delivery cost of the project is $535,525.

Project Item Total
Construction Contract Bid Amount $428,420
Construction Administration, Inspection, Testing $42,842 Contract Contingencies $64,263
TOTAL ESTIMATED CONSTRUCTION DELIVERY COST $535,525
Approval of this item will amend the FY 2023/24 Capital Improvement Program (CIP) to include the Project W-Bus Shelter (Exhibit 5).

FISCAL IMPACT
Project No. 22-6999 is the number assigned to the funding for tracking of all expenditures to deliver the construction of this project. As indicated in the Cost Analysis, the total construction delivery cost of the project is $535,525 which includes construction, contract administration, inspection, testing, and contingency. During construction, if necessary, funds may be reallocated between construction administration, inspection, testing, and/or contingencies.

The proposed contract enables staff to authorize change orders (not-to-exceed 25% of the base bid) in accordance with Greenbook: Standard Specifications for Public Works Construction, if necessary, for contingencies. Staff expects to utilize other available Public Works appropriations if a contingency becomes necessary to complete the project. If there are no other available appropriations, then staff will return to City Council with a project update and recommendations.

The following table summarizes the funds budgeted and available in current FY 2023-24 for expenditure to deliver construction of this project. Existing funding will be available in the FY 2023-24 budget through the Carry Forward (CF) process. The additional budget is available in FY 2023-24 approved budget and will be assigned to the project upon approval of the amendment to the FY 2023-24 CIP. Any unspent budget in FY24 will be included in future year CF for City Council consideration.

City Council
19 –
3 7/18/2023

Award Construction Contract with M.S. Construction Management Group July 18, 2023

Page 4 ends

3 5
8 5
Fiscal
Year
Accounting Unit
- Account No.
(Project No.)
Fund
Description
Accounting Unit -
Account No.

Description
Amount
Existing Budget (Excluding Design Engineering)
2023-24
(CF)
03217663-66220
(22-6999)
Measure M-
Street
Construction
Measure M2
Competitive Street,
Improvements Other
Than Buildings
$253,472
Additional Budget
2023-24 01117622-66220
(22-6999) General Fund
PWA Right-of-Way,
Improvements Other
Than Building
$168,053
Appropriation Adjustment
2023-24 05917660-66220
(22-6999)
Select Street
Construction
Select Street
Construction,
Improvements Other
Than Buildings
$114,000
Additional Budget/Appropriation Adjustment Total $282,053 Complete Total $535,525

EXHIBIT(S)

1. Location Map

2. Bid Proposal

3. Construction Contract

4. Cost Analysis

5. CIP Project Sheet
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager

City Council
19 –
4 7/18/2023

PWA

SANTA ANA

PUBLIC WORKS AGENCY
Project No. 22-6999:

Project W- Bus Shelter
Exhibit 1

City Council
19 –
5 7/18/2023

BLD PROPOSAL

CITY OF SANTA ANA

PROPOSAL
PROJECT NO.: 22-6999

PROJECT W-BUS SHELTER
TO: CITY COUNCIL OF THE CITY OF SANTA ANA
FROM: M.S. Construction Management Group
REQUIREMENT:

Exhibit 2
The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule:

Item Description Qty Unit Unit Price Amount
I Install Transit Advertising Shelter 31 EA $3500 $108,500 (Furnished by City of Santa Ana Vendor)
2 Install Transit Non-Advertising 17 EA $ 3500 $ 59,500 Shelter (Furnished by City of Santa Ana
Vendor)
3 Install Solar Power for Transit 31 EA $ 400 $ 12,400 Advertising Shelter (Furnished by Citv of Santa Ana Vendor)
4 Install Solar Power for Transit Non- 17 EA $ 400 $ 6,800Advertising Shelter (Furnished by City of Santa Ana Vendor)
5 Install Steel Bench (Furnished by 58 EA $ 300 $ 17,400City of Santa Ana Vendor) 6 Install 32 Gallon Trash Receptacle 67 EA $ 300 $ 20,100 (Fw·nished by City of Santa Ana
Vendor)
7 PCC Sidewalk (T=6")* 6,000 SF $ 21 $126,000
8 Adjust Water Meter to Finished I EA $ 600 $ 600 Grade 9 Furnish and Install New #6 Pullbox 3 EA $ 550 $ 1,650 10 Construction Permit I LS $6,130 $6,130
I l Master Padlock 67 EA $ 20 $1, 340
12 Removal of Existing Bus Shelter, 34 EA
Bench, and Trash Receptacle at bus $2,000 $68,000 Stop locations * P-I of P-16

City Council
19 –
6 7/18/2023

CITY OF SANTA ANA

PROPOSAL
PROJECT NO.: 22-6999

PROJECT W - BUS SHELTER
TOTAL BASE BID I$ 428,420.00
Exhibit 2
The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add-alternate bid items (if any). * The quantity for this bid item is shown for bid comparison only. This bid item shall not be subject to the "25%" limit as stated in Section 3-2 of the Standard Specifications. The actual amount for this item will be dictated by the actual quantity used, and the Agency reserves the right to increase or decrease the quantity of this item accordingly. t This bid item is considered a Specialty Item per Section 3-2 of the Standard Specifications.

TIME FOR COMPLETION OF IMPROVEMENTS AND LIOUIDA TED DAMAGES The undersigned bidder hereby proposes to complete the Work for the total base bid amount shown above, within number {80) working days after the commencement date stated in the Notice to Proceed.

The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $1,500 per calen ar day.

Name of Firm M.S. Constru ·
Title President
(If an individual, so state. If a firm or co-partnersh , state the firm name and give the names of all individual co-partners composing the firm. If a corporation, state legal name of corporation, and names of President, Secretary, Treasurer and Manager, thereof.) P-2 of P-16

City Council
19 –
7 7/18/2023

CITY OF SANTA ANA

CONSTRUCTION CONTRACT
rev. 09/01/2017 Page 1 of 3
PROJECT 22-6999

PROJECT W-BUS SHELTER
This CONSTRUCTION CONTRACT is made and entered into this 18th day of July, 2023 by and between the City of Santa Ana, California, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter “CITY”) , and M.S. Construction Management Group (hereinafter “CONTRACTOR”).

WITNESSETH:

The CITY and the CONTRACTOR, for the consideration hereinafter named, mutually agree as follows:

1. CONTRACTOR agrees to perform all the work and furnish all the materials at its own cost and expense necessary to construct and complete in a good and workmanlike manner and to the satisfaction of the City Engineer of the CITY, the Project W Bus Shelter (hereinafter referred to as the “ WORK OF IMPROVEMENT”) identified in and in accordance with the Contract Documents prepared by the City’s Public Works Agency and approved by the City Council.

2. The complete Construction Contract consists of the “Contract Documents” as defined by the Standard Specifications for Public Works Construction and which include the following:
 Notice Inviting Bids
 Information to Bidders
 Bid Proposal
 Bid Bond
 Contract Form
 Contract Bonds
 General Provisions
 Special Provisions
 Technical Provisions and Project Plans
 Community Workforce Agreement
 Appendices
In case of conflict between the Contract Documents, the precedence of documents shall be as established in the Standard Specifications for Public Works Construction.

3. CITY agrees to pay and CONTRACTOR agrees to accept in full payment to complete the WORK OF IMPROVEMENT the sum total amount not to exceed Four Hundred Twenty-Eight Thousand Four Hundred Twenty Dollars and No Cents ($428,420.00), as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit “A.” The BID PROPOSAL contains a schedule of unit price(s) or lump sum(s) based on approximate quantities only, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as may be deemed necessary or advisable.

EXHIBIT 3

City Council
19 –
8 7/18/2023

Page 2 of 3 ends

4. CONTRACTOR agrees to complete the WORK OF IMPROVEMENT within the time specified in the Time for Completion of Improvements section of the BID PROPOSAL (Exhibit “A”) including commencing construction within the timeframe therein specified after issuance of a Notice to Proceed.

5. The CONTRACTOR will pay, and will require all subcontractors to pay, all employees on the WORK OF IMPROVEMENT a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the w age determinations for this work in accordance with applicable State and Federal law.

6. If applicable, the CONTRACTOR shall adhere to the CITY’S Community Workforce Agreement (CWA), a pre-hire collective bargaining agreement, which establishes the labor relations policies and procedures for CONTRACTOR to follow in the crafts persons employed to complete the WORK OF IMPROVEMENT as more fully described in the CWA. The CWA may be found on the City’s website at: http://www.santa-ana.org/pwa/documents/CWA.pdf

7. CONTRACTOR shall, after award of this Contract, furnish two bonds to be approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work (Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished (Payment Bond). This Contract shall not become effective until such bonds are supplied to and approved by the CITY.

8. CONTRACTOR shall, prior to the release of the performance and payment bonds or the retention payment, furnish a warranty performance and payment bond (Warranty Bond). Said Warranty Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand Dollars ($10,000) or Twenty Percent ( 20%) of the final contract price. For projects above Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price.

9. CONTRACTOR shall, after awar d of this Contract, furnish Certificates of Liability Insurance and Worker’s Compensation Insurance as outlined in the General Provisions, to be approved by the CITY.

10. INDEMNIFICATION.

To the fullest extent allowed by law, CONTRACTOR and its Subcontractors hereby agree to defend, indemnify, and hold harmless CITY, its City Council, boards and commissions, officers, agents, employees, representatives and volunteers (hereinafter collectively referred to as "Indemnitees"), through legal counsel acceptable to C ITY, from and against any liability, claims, actions, costs, damages or losses, including reasonable costs and attorney’s fees, for injury, including death to any person or damage to any property, arising directly or indirectly from, or in any manner relating to, any of the following:

(i) Performance or nonperformance of the Work of Improvement by CONTRACTOR or its Subcontractors of any lower tier;
(ii) Performance or nonperformance by CONTRACTOR or its Subcontractors of any lower tier , of any of the obligations under the Contract Documents;

City Council
19 –
9 7/18/2023

City Council
19 –
10 7/18/2023

BLD PROPOSAL

CITY OF SANTA ANA

PROPOSAL
PROJECT NO.: 22-6999

PROJECT W-BUS SHELTER
TO: CITY COUNCIL OF THE CITY OF SANTA ANA
FROM: M.S. Construction Management Group
REQUIREMENT:

Exhibit A
The undersigned bidder declares that they have carefully examined the location of the proposed work, that they have examined the Contract Documents in its entirety and hereby proposes to furnish all material and do all the work required to complete the said work in accordance with said plans (if any) and the specifications for the unit price(s) or lump sum(s) set forth in the following schedule:

City Council
19 –
11 7/18/2023

CITY OF SANTA ANA

PROPOSAL
PROJECT NO.: 22-6999

PROJECT W - BUS SHELTER
TOTAL BASE BID I$ 428,420.00
Exhibit A
The lowest responsible bidder shall be selected based on the total base bid. The City reserves the right to award the Base Bid, and any, all, or none of the add-alternate bid items (if any). * The quantity for this bid item is shown for bid comparison only. This bid item shall not be subject to the "25%" limit as stated in Section 3-2 of the Standard Specifications. The actual amount for this item will be dictated by the actual quantity used, and the Agency reserves the right to increase or decrease the quantity of this item accordingly. t This bid item is considered a Specialty Item per Section 3-2 of the Standard Specifications.

The liquidated damages amount, in lieu of the amount specified in Subsection 6-9 of the Standard Specifications, shall be $1,500 per calen ar day.

City Council
19 –
12 7/18/2023

EXHIBIT 4
Construction Contract 428,420.00 $
Contract Administration, Inspection and Testing 42,842.00$ Contingencies 64,263.00 $
TOTAL ESTIMATED CONSTRUCTION COSTS 535,525.00$
CONSTRUCTION OF PROJECT NO. 22-6999: Project W- Bus Shelter

COST ANALYSIS

City Council
19 –
13 7/18/2023

Exhibit 5
CITY OF SANTA ANA FY 21/22CIP

CAPITAL IMPROVEMENT PROJECT WORKSHEET
PROJECT TITLE: PROJECT DESCRIPTION: PROJECT NEED:

PROJECT CATEGORY:

LOCATION MAP
PROJECT COSTS FY 21/22
1,030,000
FY 22/23
-
FY 23/24
-
FY 24/25
-
FY 25/26
-
FY 26/27
-
FY 27/28
-TOTAL

CITYWIDE SOURCE OF FUNDS
TOTAL
FY 21/22
1,030,000
FY 22/23
-
FY 23/24
-
FY 24/25
-
FY 25/26
-
FY 26/27
-
FY 27/28
-
AGENCY: DIVISION: CONTACT: DATE:
56 City Council
19 –
14 7/18/2023

Public Works Agency
www.santa-ana.org/public-works
Item # 20
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
July 18, 2023
TOPIC: Preconstruction Engineering Services for Fairview Bridge Replacement Project

AGENDA TITLE
Approve Agreement with SYRUSA Engineering, Inc. to provide Preconstruction Engineering Services for the Fairview Bridge Replacement and Street Improvements from 9th Street to 16th Street in an Amount Not to Exceed $285,620 for a Three-Year Term (Project No. 15-6827) (Non-General Fund)

RECOMMENDED ACTION
Authorize the City Manager to execute a consultant agreement with SYRUSA Engineering, Inc. to provide Preconstruction Engineering Services for the Fairview Bridge Replacement and Street Improvements from 9th Street to 16th Street in the amount of $259,659, with a contingency of $25,961, for a total amount not to exceed $285,620, for a three-year term beginning July 18, 2023, and expiring July 17, 2026, with an option for one two-year extension, subject to non-substantive changes approved by the City Manager and City Attorney.

DISCUSSION
Fairview Street is classified as a north-south major arterial road in the City’s General Plan Mobility Element and the County of Orange Master Plan of Arterial Highways.

Improving Fairview Street from 9th Street to 16th Street (Exhibit 1) has been a long- term priority project. The proposed project would widen Fairview Street from two lanes to three lanes in each direction. Additionally, the Fairview Street Bridge would be replaced with a new six-lane bridge and three lanes in each direction. The new bridge includes a complete bridge deck with barrier rails, sidewalks, bicycle lanes, a raised landscaped median, and lighting.

On March 15, 2023, the Public Works Agency (PWA) released Request for Proposals (RFP) No. 23-020 (Exhibit 2), by which it sought a qualified firm to provide construction management services for the Fairview Bridge Replacement and Street Improvement project. The scope of work includes the pre-construction phase of the construction management services such as constructability review, review of the plans, specifications, and cost estimate; and provides a biological survey and support during the bidding period, which should take place by the end of 2023.

City Council
20 –
1 7/18/2023

Agreement SYRUSA Engineering Inc. for Fairview Bridge
July 18, 2023

Page 2 ends

3 5
8 2
The RFP was advertised on the City’s online procurement management and publication system, PlanetBids, with electronic proposals due on April 11, 2023. Seven responsive proposals were received and evaluated by a selection committee. Based on criteria outlined in the RFP, the following summarized the responding firms and their ranking:

Firm Location Rank
SYRUSA Engineering, Inc. Brea, CA 1
Fountainhead Anaheim, CA 2
Z&K Consultants Riverside, CA 3
Berg & Associates Inc. San Pedro, CA 4
Falcon Engineering Services Corona, CA 5
PreScience, a Bureau Veritas Co. Aliso Viejo, CA 6
Southstar Engineering & Consulting, Inc. Riverside, CA 7 Staff recommends awarding an agreement (Exhibit 3) to SYRUSA Engineering, Inc., to provide preconstruction engineering services based upon the scope of work and selection criteria outlined in RFP 23-020. Their proposal demonstrated the firm has the necessary capacity and expertise to complete the required services. The firm’s rates are reasonable and within industry standards, the team qualifications are appropriate for this project, and the proposal was determined to provide the best value for the City.

FISCAL IMPACT
Funding is available in the FY 2023-24 budget and any remaining balances not expended at the end of the fiscal year will be presented to the City Council for approval of carry-overs to FY 2024-25.

EXHIBIT(S)

1. Location Map

2. RFP No. 23-020

3. Consultant Agreement with SYRUSA Engineering, Inc.

Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Kristine Ridge, City Manager
Fiscal
Year
Accounting Unit
- Account No.

Fund
Description
Accounting Unit - Account
No. Description Amount
23-24
(CF)
03217662-66220
(15-6827)
Measure M-
Street
Construction
Measure M2 Local Fair
Share, Improvements Other
Than Building
$285,620
TOTAL: $285,620

City Council
20 –
2 7/18/2023

PWA

SANTA ANA

PUBLIC WORKS AGENCY
Project No. 15-6827:

Fairview Bridge Replacement and Street
Improvements (9th Street to 16th Street)
Exhibit 1

City Council
20 –
3 7/18/2023

EXHIBIT 2

City Council
20 –
4 7/18/2023

NOTICE INVITING PROPOSALS
NOTICE IS HEREBY GIVEN that proposals will be received from qualified firms for Construction Management, Inspection, and Contract Administration Services.

Responses to this Request for Proposals (RFP) must be submitted electronically to the PlanetBids system no later than APRIL 11, 2023 at 4:00 p.m. Proposals received after this date/time will not be considered. It is the responsibility of the proposer to ensure that any proposals submitted have sufficient time to be received by the City of Santa Ana prior to this proposal due date and time.

Additionally, it is a requirement that hard copy proposals also be sent by courier service, mailed, or hand delivered in an enclosed sealed envelope and marked clearly with the following “SEALED PROPOSAL FOR

FAIRVIEW BRIDGE REPLACEMENT AND
STREET IMPROVEMENTS (9TH ST. TO 16TH ST.)

CONSTRUCTION MANAGEMENT SERVICES
RFP NO. 23-020

IN THE CITY OF SANTA ANA
DO NOT OPEN WITH REGULAR MAIL.”
City of Santa Ana
Attn.: Mindy Ly
Public Works Agency; M-36
20 Civic Center Plaza; Ross Annex
Santa Ana, CA 92701
For further instructions regarding hard copy submission of proposals, refer to PlanetBids.

All notifications, requests for information, updates and addenda will be posted online on PlanetBids at https://www.planetbids.com/portal/portal.cfm?CompanyID=20137. Proposers shall be responsible for monitoring the site to obtain information regarding this solicitation. Failure to respond to required updates may result in a determination of a nonresponsive qualification.

City of Santa Ana RFP 23-020

Page 2 ends

City Council
20 –
5 7/18/2023

TABLE OF CONTENTS
I. INTRODUCTION / PROJECT DESCRIPTION 4
6II. INSTRUCTIONS TO PROPOSERS
A. CITY RESPONSIBILITIES
B. PROPOSER RESPONSIBILITIES
C. REQUEST FOR INFORMATION OR CLARIFICATION
D. ADDENDA
E. LICENSES & PERMITS
F. INSURANCE
G. INFORMATION PACKET
H. PRE-PROPOSAL MEETING
I. CITY RIGHT TO REJECT
J. BID PROTESTS
III. SUBMITTAL REQUIREMENTS
A. GENERAL
8 B. PROPOSAL CONTENTS

1. STATEMENT OF QUALIFICATIONS

2. SCOPE OF SERVICES AND SCHEDULE

3. FEE PROPOSAL

4. CERTIFICATIONS
IV.

PROPOSAL REVIEW (CONSULTANT SELECTION)
A. EVALUATION AND RATING
B. SELECTION
10 10CONTRACT AWARD
A. REQUEST FOR COUNCIL ACTION
B. EXECUTION OF AGREEMENT
VI. IMPLEMENTATION
A. KICK-OFF MEETING
B. NOTICE TO PROCEED
10 11VII. PUBLIC RECORDS
VIII. APPENDIX
ATTACHMENT 1: SCOPE OF WORK
ATTACHMENT 2: AGREEMENT
ATTACHMENT 3: CERTIFICATION
ATTACHMENT 4: CALTRANS ATTACHMENTS
ATTACHMENT 5: FIGURES, EXHIBITS, PLANS, AND SPECIFICATIONS City of Santa Ana RFP 23-020

Page 3 ends

City Council
20 –
6 7/18/2023

I. INTRODUCTION / PROJECT DESCRIPTION
Nature of Work:

The City now desires to engage a professional consultant to provide pre-construction and construction management services for the Fairview Bridge Replacement and Street Improvement from 9 th Street to 16 th Street (Project). The consultant shall provide Construction Manager, Inspector, and Contract Administrator for this Project.

Number of Proposals and Signature:

Five (5) hard copies are required to accompany an electronic submittal of the complete proposal package on PlanetBids. One of the hard copies shall be marked as “ORIGINAL” and be signed by a company official with the power to bind the company, and submitted to the City of Santa Ana. Please be explicit in identifying the appropriate person with legal authority to bind the company.

The Statement of Qualifications shall be limited to a maximum of (20) double-sided sheets of paper (excluding front and back covers, section dividers and attachments such as resumes, forms). Font size shall be minimum 11-point Arial. Additional (4) double-sided sheets of 11” x 17” for exhibits only may be included.

Proposal Evaluation and Rating:

The criteria for evaluating the SOQ submitted will take the following items into consideration:
 Firm/Team Experience
 Understanding of Need
 Relevant Project Experience
 References
30%
30%
30%
10%
The City has established a proposal review committee to evaluate proposers based on the response to this RFP, which includes adherence to outlined directions and format, and the City evaluation criteria set forth above. A final score will be calculated for each submitted proposal and used to rank the proposers.

City of Santa Ana RFP 23-020

Page 4 ends

City Council
20 –
7 7/18/2023

Project Funding:

This project is funded with Federal, Measure M2 Competitive, and Local Funds. These funds are administered by the California Department of Transportation (Caltrans) and agency’s requirements. Special conditions may apply. Refer to Attachments 1 (Scope of Work) in the Appendix of this RFP for further information.

Term of Contract Agreement:

The City desires to enter into a contract with the top scoring firm for an initial three (3) year term with a City option for two (2) one (1) year extension period. This term is outlined in the Standard Consultant Agreement, as contained in the Appendix of this RFP as Attachment 2.

City of Santa Ana RFP 23-020

Page 5 ends

City Council
20 –
8 7/18/2023

II. INSTRUCTIONS TO PROPOSERS
A. CITY RESPONSIBILITIES
The City will provide information in its possession relevant to preparation of required information in this RFP. The City will provide only the staff assistance and documentation specifically referred to herein.

B. PROPOSER RESPONSIBILITIES
Point of Contact: The selected proposer will assume responsibilities for all services in its proposal. The selected proposer shall identify a sole point of contact with the greatest knowledge concerning the required service operations and contractual matters, including payment of all charges resulting from the Agreement. Contact information such as email and phone number must be included into the proposal.

Evidence of Financial Capacity: Proposer may be requested to submit its most recent audited financial statement, evidencing proposer’s financial capacity to fully perform the required services, including provision of equipment and personnel expenses over a ninety (90) day period. If said financial statement does not reflect full ninety (90) day operational capacity, proposer may include a letter of credit as evidence of supplemental capacity.

C. REQUEST FOR INFORMATION OR CLARIFICATION
All questions or requested clarifications shall be made only in writing to the Q&A section located in PlanetBids no fewer than five (5) calendar days prior to the date and time set for opening of proposals. No verbal requests or responses will be accepted. Significant interpretations or clarifications will be addressed via addenda to this RFP.

D. ADDENDA
Any changes in RFP from the date of release to date of submittal will result in an addendum or amendment. Notification of such addendum or amendment shall be posted on PlanetBids at https://www.planetbids.com/portal/portal.cfm?CompanyID=20137 as set forth in the Notice Inviting Proposals. Addenda shall become part of the agreement documents.

E. LICENSES & PERMITS
The selected proposer shall be required to obtain a City of Santa Ana Business license within ten (10) business days of selection and must provide a copy to the City’s project manager or designee prior to commencing any work in Santa Ana.

Additionally, Proposer will be responsible for obtaining any licenses/permits required by the Scope of Work.

City of Santa Ana RFP 23-020

Page 6 ends

City Council
20 –
9 7/18/2023

F. INSURANCE
The Selected Proposer shall provide the required evidence of insurance coverage as set forth in the Scope of Work within ten (10) business days after receipt of notice that the contract has been awarded. Failure to provide the required insurance certificates shall be cause for the annulment of the award and the forfeiture of the proposal guaranty. The City will provide the Selected Proposer with a “New Vendor Checklist”, which outlines insurance requirements.

G. PAYMENT INFORMATION PACKET
The selected proposer shall return a completed payment information packet within ten (10) business days after the successful proposer has received notice that the contract has been awarded.

H. PRE-PROPOSAL MEETING
Should a pre-proposal meeting be scheduled, the date, time, and location is identified on the cover page of this RFP. The meeting will include discussion of the project scope and a question-and-answer session. It is highly recommended that the Proposer’s key team members attend this meeting. Significant interpretations or clarifications will be addressed via addenda to this RFP, as described above in “Section D: Addenda.” I. CITY RIGHT TO REJECT
The City reserves the right to reject any or all proposals submitted and no representation is made hereby that any contract will be awarded pursuant to this RFP or otherwise.

The City reserves the right to accept or reject the combined or separate components of this proposal in part or in its entirety or to waive any minor inconsistency, informality or technical defect in the proposal.

The City reserves the right to reject, replace, and approve any and all subcontractors. All subcontractor(s) shall be identified in response to this RFP. Subcontractors shall be the responsibility of the successful proposer and the City shall assume no liability of such subcontractors.

J. BID PROTESTS
Proposers with concerns or rebuttal of any staff determination of non-responsiveness or non- responsibility may submit, in writing within five (5) business days, to the Project Manager, any concerns regarding the RFP process or staff determination. Such writing shall be considered by the City Manager or her designated representative, and may be acted upon within five (5) business days. If no action is taken within such time, there shall be no change to the staff determination. The exercise by the Proposer of its right to submit written concerns shall be a condition precedent to seeking judicial review of any award of a contract hereunder.

City of Santa Ana RFP 23-020

Page 7 ends

City Council
20 –
10 7/18/2023

III. SUBMITTAL REQUIREMENTS
A. GENERAL

1. The number of Proposal Copies and signature is specified in:

RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION

2. Deadline:

Proposals are due to the City of Santa Ana at the date, time, and location specified in the Notice Inviting Proposals.

B. PROPOSAL CONTENTS
The proposal format and page limitation, if any, is specified in:

RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION

1. STATEMENT OF QUALIFICATIONS
a. Cover Letter: Proposals shall include a letter signed by a principal or authorized representative who can make legally binding commitments for the entity.
b. Contract Agreement Statement: Proposal shall include a statement outlining your concurrence or concerns with any and all provisions contained in the Agreement attached herein as Attachment 2 in the Appendix.
c. Firm and Team Experience: Proposal shall include a profile of the firm’s experience. Include resumes of project team/sub-consultants that will be providing services which outline their technical, design, and construction management experiences. At a minimum, this should include the project manager/principal agent, associates in charge when project manager/principal agent is unavailable, key personnel, firm size, and an organization chart identifying only those who will perform work for the proposed project and the percentage of each individual’s time devoted to this project. The project manager/principal agent shall be the primary contact person to represent your firm and will be the person to conduct the presentation, if invited for an interview.

City of Santa Ana RFP 23-020

Page 8 ends

City Council
20 –
11 7/18/2023

d. Understanding of Need: Proposal shall include an outline which demonstrates the firm’s understanding of the work. This outline should include anticipated approach, tasks necessary for successful completion, deliverables, and suggestions or special concerns that the City should be made aware of. Identify any assumptions and/or exclusions used in preparation of the scope of work and associated fee estimate. e. Relevant Project Experience: Proposal shall include a list of relevant projects, which your firm or personnel have completed within the last 5 years, including significant construction management work with public agencies on federally funded and bridge projects. Project information should include project description, project location, year started and completed, construction project initial bid amount and final amount, client name, and contact information. City of Santa Ana staff may conduct site visits at select projects.
f. References: Proposals shall include a listing of relevant projects with references for three public entities with valid current emails and phone numbers for which Proposer has performed similar construction management, inspection, and contract administration work within the past five (5) years.

2. SCOPE OF SERVICES AND SCHEDULE:

Proposal shall include a Scope of Services and Schedule which details the work phases to be completed, the tasks to be accomplished, the deliverables to be provided, and the schedule / timeline to complete the project, based upon the requested Scope of Work detailed in Attachment 1 of this RFP.

3. FEE PROPOSAL:

The fee proposal shall be submitted separate and concurrently with the technical proposal, both submitted electronically in PlanetBids and as a hard copy in a separately sealed envelope, clearly labeled as “Fee Proposal.” This shall include the firm’s Standard Hourly Fee Schedule, a table outlining the tasks and team hourly effort for each of the major tasks, and a Project Fee Schedule as outlined in the Scope of Work.

The fee proposal will not be opened until the proposals have been evaluated by the proposal selection committee. The City will select the consultant based on qualifications, and then negotiate a contract price based on available funding.

City of Santa Ana RFP 23-020

Page 9 ends

City Council
20 –
12 7/18/2023

4. CERTIFICATIONS:

The following forms shall be signed and included as part of the proposal submittal package:
• Attachment 3-1: Non-Collusion Affidavit
• Attachment 3-2: Non-Lobbying Certification
• Attachment 3-3: Non-Discrimination Certification
 Caltrans Exhibits as referenced in Attachment 1 Scope of Work under Special Provisions (also referenced in Attachment 4)
IV. PROPOSAL REVIEW (CONSULTANT SELECTION)
A. EVALUATION AND RATING
The criteria for evaluating the proposals are specified in:

RFP SECTION I - INTRODUCTION / PROJECT DESCRIPTION.

B. SELECTION
The selection committee will be comprised of at least (3) City staff from multiple departments. The committee may interview the top ranking proposers. The City will recommend award of contracts to the proposers who will provide the best value to the City. The City reserves the right to begin negotiations and enter into a contract without interview or further discussions.

V. CONTRACT AWARD
A. REQUEST FOR COUNCIL ACTION
Following evaluation and rating by the proposal review committee and acceptance from Funding agency following possible financial audit, the Project Manager will recommend award contracts to the top-ranking proposer that will provide the best value to the City.

B. EXECUTION OF AGREEMENT
The Scope of Services, Schedule, and Fees submitted in the proposal will be the basis of any negotiation of final terms, which will lead to a completed agreement ready for execution based on the standard Agreement attached herein as Attachment 2 in the Appendix.

VI. IMPLEMENTATION
A. KICK-OFF MEETING
City of Santa Ana RFP 23-020

Page 10 ends

City Council
20 –
13 7/18/2023

A kick-off meeting will be held after award of contracts. Consultants and their team will meet with City of Santa Ana staff to conduct introductions, discuss scope of services, schedule, and implementation processes.

B. NOTICE TO PROCEED
Prior to issuance of a formal Notice to Proceed (NTP), Consultant shall provide all required bonds, insurance documents, and contents of the Information Packet for review and approval by the City.

VII. PUBLIC RECORDS
All data, documents and other products used, developed, or produced during response preparation of this RFP will become property of the City. All responses to this RFP shall become property of the City. Proposer information identified as proprietary information be maintained confidential, to the extent allowed under the California Public Records Act.

Proposals will become public record after award of contract. Proposer information identified as proprietary information shall be maintained confidential, to the extent allowed under the California Public Records Act.

City of Santa Ana RFP 23-020

Page 11 ends

City Council
20 –
14 7/18/2023

Appendix
ATTACHMENT 1

SCOPE OF WORK

CITY OF SANTA ANA

REQUEST FOR PROPOSALS
FOR

FAIRVIEW BRIDGE REPLACEMENT AND
STREET IMPROVEMENTS (9TH ST. TO 16TH ST.)
RFP NO. 23-020

INTRODUCTION/BACKGROUND
The City of Santa Ana has in its budgeted Capital Improvement Program to improve Fairview Street Bridge Replacement and Street Improvement from 9 th Street to 16 th Street (Project).

Fairview Street is a regionally significant arterial roadway, providing north-south travel corridor.

Currently, this roadway provides three lanes in each direction south of 9th Street and north of 16th Street. The segment between 9th Street and 16th Street is reduced to two lanes in each direction.

The project includes widening Fairview Street from 9 th Street to 16 th Street, including replacing the Fairview Street bridge crossing over the Santa Ana River (refer to Figure 1 and 2). The Project would widen Fairview Street from two lanes in each direction to three lanes in each direction.

Fairview Street Bridge would be replaced with a new six-lane bridge (three lanes in each direction), including a complete bridge deck with decorative barrier rails, divided railing for shared pedestrian/bike path, a raised median, and lighting (refer to Figure 3).

The proposed bridge would be expanded from approximately 52 feet to 100 feet in width, and would have the same roadway profile as the existing bridge. The eight pier walls that support the existing bridge would be removed, and four new pier walls would be constructed to support the new bridge (refer to Attachment 4 for complete set of plans and specifications).

All proposed right of way acquisition and easement have been completed. The anticipated construction cost for this project is between $25M to $30M.

Note: Selected Consultant will have access to the latest documents once the RFP has been awarded.

SCOPE OF WORK
The City of Santa Ana (City) is inviting proposals from experienced and responsive consultants (Consultant) to review and handle the project construction plans for completeness and constructability, the technical specifications and special provisions, the work quality and cost estimates, pre-construction tasks upon City Council construction project award to a contractor, inspections, construction management duties, and managing all construction activities and City of Santa Ana RFP 23-020
Page A1-1

City Council
20 –
15 7/18/2023

schedule for timely work completion. All work will be conducted and prepared in accordance with City and/or Caltrans practices, regulations, policies, procedures, manuals, and standards, as appropriate and includes compliance with Federal Highway Administration requirements through project closeout.

The Consultant shall provide sufficient number individuals to act as Construction Manager (CM), Inspector(s), and a Contract Administrator (CA), and serve as an extension of City staff to timely assist in the overall delivery of this Project. The Consultant team will report directly to the City's Project Manager (PM) or his/her designee authorized representative. City staff will oversee the work of the Construction Manager, Inspector, and Contract Administrator.

The CM shall be a registered Civil or Structural engineer in the State of California and shall represent the City Construction Manager in the field. The CM shall possess a minimum of (5) years' experience in bridge construction management. The Inspector and the Contracts Administrator should have relevant experience in construction management and certifications that affirm their experience.

Consultant Responsibilities
The Consultant’s responsibilities shall include the following project tasks:

Task 1: Pre-construction Services
Objectives:

Perform a review of a previously completed constructability review of the Project; analyze the phasing and staging of project construction for conflicts and to minimize the disruption to traffic; review of the Project Plan, the Project Specifications, Estimates, applicable permits, and technical reports for the Project is required for a thorough understanding of the project before advertisement; and provide support during bidding and prepare Caltrans pre-award package. .

The pre-construction services including, but not limited to, the following:

1. Provide a thorough review of the previously completed constructability review and provide any comments and/or recommendations to ensure all comments are met and up to date.

2. Provide a thorough review of the construction sequence necessary to complete the improvements included in the construction contract.

3. Review potential utility conflicts and identify items requiring coordination with third party utility agencies.

4. Review measurement and payment sections of the Specifications to ensure that the proposed work specified is covered by a bid item and identify any missing and/or redundant pay items.

5. Perform an Independent Quantity Take-off of all items of work on the Project and make updates to engineer’s estimate for current unit pricing.

6. Update and modify the cost estimate and contract documents according to the findings.

7. Prepare and submit an itemized list of findings and outline recommendations to reconcile issues discovered and generally to expedite the project. If it is more efficient to make changes directly on the contract documents, then show changes made on the documents.

City of Santa Ana RFP 23-020
Page A1-2

City Council
20 –
16 7/18/2023

8. Conduct site visit/field reviews as part of the plan review to identify any current field conditions not reflected on the Plans.

9. Identify the elements of construction that could be substituted with more efficient materials and associated methods.

10. Review of Geotechnical report and the structural calculations for the purposes of the expected constructability review.

11. Review of the NEPA and CEQA documents for purposes of the expected constructability review and expectation of the Project. Ensure all environmental compliance are met and included in the Project contract document of the following, but not limited to the Mitigation Monitoring and Reporting Program, (MMRP), Environmental Commitments Record (ECR), and permitting agency guidelines and their Special Provisions. It is the Consultant’s responsibility to bring on board environmental sub consultant to prepare any pre-construction report/work plan and monitor contractor’s mitigation compliance work performed.

12. Review of all regulatory permits, either already approved or currently in review, to ensure all permits are met for the Project. It is the Consultant’s responsibility to take over any permits that are currently in review (County and Army Corps of Engineer).

13. Review project phasing/detouring for construction in order to meet the Army Corps of Engineers and Orange County Flood Control District (OCFC) permission to perform work in the riverbed.

14. Provide recommendations for special material testing and inspection that will be needed during the construction phase. Consultant shall bring on board and set aside a budget for material testing and inspection for the duration of the Project.

15. Provide an updated and reasonable construction schedule.

16. Provide support during bidding period, including addenda and answering any questions from bidders, and attend pre-bid job walk, if required.

17. Analyze the bids for accuracy, identify the lowest responsive bidder, check for references, and review all bid forms.

18. Prepare agenda and conduct pre-construction “kick-off meeting”. Coordinate and invite contractor, all agencies, and utility companies involved in the Project.

19. Prepare federally funded project pre-award package using Caltrans Local Assistance Procedures Manual documents and forms.

20. Provide and maintain all meeting minutes and notes.

City of Santa Ana RFP 23-020
Page A1-3

City Council
20 –
17 7/18/2023

TASK 2: Construction Management, Inspection, and Contract Administration Services Objectives:

Perform a complete construction management services including inspection and contract administration for the construction contract document in conformance with the requirements set forth in the State’s Construction Manual, State’s Local Assistance Programs and Procedures Manual, OCFCD encroachment permit/requirements, and other Agencies regulatory permits/requirements. The expectation of the Construction Manager is to enforce the contract requirements, comply with Federal funding guidelines/requirements, and maintain the project schedule for timely work completion.

1. Review of completeness and quantity of all required shop drawings, product data, samples, requests for information (RFI), and other submittals ("Submittals"). Shall review, reject, approval of mix designs and materials and product submittal. Shall establish and implement procedures for expediting the processing and approval of Submittals.

2. Use of Procore software for all aspects of construction management, including, but not limited to, submittals, RFI’s contract documents, inspections, drawings, photos, dailies, and weeklies, City will provide license to CM team to monitor and implement.

3. Lead pre-construction meeting and schedule and conduct weekly construction and progress meetings to discuss such matters as procedures, progress, problems and scheduling. Will prepare and promptly distribute minutes.

4. Attend and co-lead up to twenty (20) hours of Construction Update meetings with the community, including a pre-construction meeting. Primary purpose of these meetings are to provide pertinent updates to the community and answer any questions relating to the construction project.

5. Ensure that all regulatory permits, including, but not limited to: 1) USACE Section 408 permit, Section 404 Permit, Section 106, OCFCD, etc. are current and up to date, and that all applicable fees have been paid, and shall obtain approvals from authorities having jurisdiction over the Project.

Consultant shall set aside a budget for permit fees as part of this contract.

6. Review construction schedule, including activity sequences and duration, schedule of submittals and schedule of delivery for products with long lead-time. Monitor and obtain two-week look ahead schedule as well as overall updated schedule from the contractor periodically showing current conditions and revisions required by actual progress.

7. Conduct comprehensive evaluation of change order requests, provide independent estimates, negotiate, render recommendations, and assist in claim resolution. Shall regularly monitor and report on the status of the Project Construction Budget on a monthly basis, indicating actual costs for completed activities and work in progress, and indicating estimates for uncompleted work.

Report should identify variances between actual and budgeted or estimated costs, and shall advise the City whenever it appears that the Actual Construction Cost has exceeded, or will exceed, the Project Construction Budget for the entire Project or any Project Component.

8. Monitor the contractor's safety program. Take necessary steps to ensure the jobsite conditions are in compliance with OSHA regulations.

9. Monitor and enforce traffic controls and detours. Coordinate in advance of any road closure or detours.

City of Santa Ana RFP 23-020
Page A1-4

City Council
20 –
18 7/18/2023

10. Monitor and comply with project funding guidelines and ensure Project meets the federal grant funding expenditure deadlines.

11. Maintain cost accounting records on authorized work performed under unit costs and additional work performed on the basis of actual costs of labor and materials, or other work requiring accounting records.

12. Develop and implement procedures for the review and processing of applications by contractor for progress and final payments. Make recommendations for certification to the City for payment.

13. Determine that the work of contractor is being performed is in accordance with the contract documents. Make recommendations to the City regarding special inspection or testing of work not in compliance with the provisions of the contract documents. Subject to review by the City, reject work which does not conform to the requirements of contract documents.

14. The individuals, Construction Manager, Inspector, and Contract Administrator, shall not be responsible for construction means, methods, techniques, sequences and procedures employed by the contractor in the performance of the contract, and shall not be responsible for the failure of the contractor to carry out work in accordance with the contract documents. However, any errors, omissions, or discrepancies found in the Contract Documents shall be called to the attention of the City's Construction Manager and clarified prior to construction starts.

15. Consult with the City when the contractor requests interpretations of the meaning and intent of the drawings and specifications, and assist in achieving the resolution of problems, which may arise.

16. Record the progress of the project. Submit written daily and progress reports to the City. Keep daily logs containing a record of weather, contractor's work on the site, number of workers and equipment, work accomplished, problems encountered, and other relevant data. Make the log available to the City. Prepare and send Weekly Statement of Working Days to the contractor.

Monitor contractor's compliance with labor code requirements.

17. Maintain, in Procore, records of contract documents including drawings, addenda, change orders, and other modifications of plans and specifications marked to show all changes made during construction. Ensure contractor maintain as-built drawings and upload onto Procore on a monthly basis. At the completion of the project, Consultant shall deliver to the City all contract documents in a folder filing system provided by the City.

18. Evaluate the completion of the work of the contractor and make recommendations to the City when work is ready for final inspection. Assist the City in conducting final inspections.

19. Facilitate and coordinate inspection by representatives of other agencies.

20. Consultant shall hire subconsultant, or shall perform the work in-house, to provide special inspection and testing services. The Consultant shall determine the Materials Testing & Special Inspection services as required by the applicable guidelins. Special inspection services may be subject to CWA

21. Assist City with project budget tracking by funding source to ensure progress payment applications are applied appropriately to correct funding sources.

City of Santa Ana RFP 23-020
Page A1-5

City Council
20 –
19 7/18/2023

22. Monitor and enforce prevailing wage forms and requirements for conformance to the prevailing wage rates on a weekly basis. Shall verify that all Trade personnel listed in the daily log are also listed in the certified payroll and shall conduct weekly employee interviews, one for each trade, and submit verification with the monthly progress payments.

23. Provide Labor Compliance monitoring. Monitor prevailing wage forms and requirements for conformation to the prevailing wage rates on a weekly basis. This includes verifying that all Trade personnel listed in the daily log are also listed in the certified payroll. Verification of prevailing wage must be provided with the monthly progress payments. These services must be provided, so the labor compliance consultant is at the discretion of the Consultant.

24. Shall coordinate and assist the City’s Community Work Force Agreement (CWA) requirement.

Consultant shall monitor and enforce the CWA forms and requirements to ensure compliance.

Verification should be provided with the monthly progress payments.

25. Responsible for all project closeout items, such as: As-Built plans and related documentation, punch list completion, before and after pictures, commissioning, and review, receive, and approve all warrantee documents for record.

26. Prepare all close out documents for Caltrans Project Close Out. Organize documents in the manner categories for easy search and access in the event of an audit. In the event of an audit to occur, City will amend the contract to include audit support services.

27. Field office is to be provided by the Construction Contractor for weekly construction progress meetings and any other meetings as needed.

28. Provide and maintain all meeting minutes and notes.

The city reserves the right to add or reduce some of the above tasks and duties as it sees fit. The Consultant, serving as staff extension, shall remain sufficiently flexible to meet the needs of the City and of the project.

Fee Proposal:

In addition to Section IV.B.3 (Submittal Requirements: Fee Proposal) fee schedule shall be structured to correspond to the above mentioned tasks as follows:

Task 1:

Task 2:

Pre-construction Services
Subtasks
Construction Management, Inspection, and contracts administration Subtasks
-
-
Total Fee: _____________
Fee schedule for each task should include an hourly breakdown that corresponds to the task total.

City of Santa Ana RFP 23-020
Page A1-6

City Council
20 –
20 7/18/2023

SPECIAL REQUIREMENTS (ATTACHMENT 4)
This project utilizes California Department of Transportation (Caltrans) funds and shall therefore comply with all state and federal requirements. The below referenced forms included in Attachment 4 (Additional Provisions) of the Appendix must be completed in their entirety and submitted with your proposal:
 LAPM Exhibit 10-H1: Sample Cost Proposal
 LAPM Exhibit 10-O1: Consultant Proposal DBE Commitment  LAPM Exhibit 10-O2: Consultant Contract DBE Commitment Please reference Caltrans Local Assistance Procedure Manual, Consultant Selection, Chapter 10, for further instructions and guidelines pertaining to the completion of these forms:https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lapm/ch10.pdf COMPLIANCE WITH REQUIREMENTS OF FUNDING AGENCY:

This agreement is funded with federal grant funds administered by Caltrans. Proposer shall comply with all requirements as they pertain to the use of these funds. Refer to Attachment 4 for Caltrans required forms, including Exhibit 10-H – Sample Cost Proposal in the Appendix of this RFP.

DISADVANTAGED BUSINESS ENTERPRISES (DBE) GOAL:

The Agency has established a DBE goal for this Contract. Proposers are encouraged to obtain DBE participation for this contract. Refer to Exhibit 10-I – Notice to Proposers DBE Information included in the Appendix of this RFP. Proposers must submit Exhibits 10-O1 & 10-O2 – Consultant Proposal & Contract DBE Commitment to demonstrate compliance with Agency’s DBE goal.

CONSULTANT AUDIT & FINANCIAL REVIEW PROCESS:

Consultants, including primes and subconsultants, on a proposed Local Public Agency (LPA) contract that at any time uses state or federal-aid highway funds with a dollar value equal to or greater than $1 Million are subject to a FDR of their ICR by the Independent Office of Audits and Investigations (IOAI). IOAI will review the ICR financial documents to either accept or adjust the ICR prior to contract execution using a risk-based approach.

The selected Consultants shall reference and complete the Financial Document Review (FDR) Request Form with the respective financial documents necessary for all prime and sub- consultant rates in the Appendix of this RFP.
https://ig.dot.ca.gov/-/media/ig-media/documents/fdr/ig_fdr_request_form.pdf FDR Requirements for A&E Consultant Indirect Cost Rate:
 Requirements for total contract amount equal to or greater than $1,000,000.  Prime and all sub-consultant(s) with estimated contract costs of $500,000 and above must provide the documents marked in the above form based on their applicable category.

City of Santa Ana RFP 23-020
Page A1-7

City Council
20 –
21 7/18/2023

To independently download any of the Caltrans Exhibits required per this RFP, visit:
https://dot.ca.gov/programs/local-assistance/forms/local-assistance-procedures-manual-forms

CITY RESPONSIBILITIES
The City will provide information in its possession relevant to the preparation of the required information in the RFP. The City will provide only the staff assistance and the documentation specifically in referred to herein.




Furnish scope of work and provide general direction as needed for the assigned project Advertise, award, and execution of construction contract Electronic files (plans, specifications, cost estimate, and City of Santa Ana’s CADD Standards) Facilitate meeting space and coordination and City facilities CONSULTANT RESPONSIBILITIES:






Provide all required insurance as outlined in Attachment 2 of this RFP Submit renewal of Certificate of Insurance 30 days before expiring Ensure Certificate of Insurance is current when submitting invoices Follow City of Santa Ana Invoicing guidelines
Submit Special Requirement forms to meet the federal funding requirements and deadline Maintain in Procore project folders of various electronic documents throughout construction PAYMENT AND INVOICING:

Selected Consultant shall invoice the City based on time and material according to the City’s standard invoice template. Tasks and hours shall be clearly identified and all rates must match those included in the approved agreement. City shall retain ten percent (10%) of the invoice amount from each payment until the completed Project has been accepted by the City.

Each invoice must include a Consultant Progress Report that contains tasks and activities completed and summary of work in the next month period. Certificate of insurance must be current in order for invoices to be processed.

City of Santa Ana RFP 23-020
Page A1-8

City Council
20 –
22 7/18/2023

AGREEMENT TO PROVIDE CONSTRUCTION MANAGEMENT SERVICES
THIS AGREEMENT is made and entered into this DATE by and between, Insert Consultant name (Consultant”), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (“City”).

RECITALS
A.

On [Date], the City issued Request for Proposal (“RFP”) No. 23-020, by which it sought a consultant to provide Construction and Management Services for street bridge replacement, and bike trail for the City’s Public Works Agency.

Consultant submitted a responsive proposal that was selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in RFP No. 23-020.

In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional contracting firm in the field.

NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows:

1. SCOPE OF SERVICES
On an on-call basis, and at the City’s sole discretion, Consultant shall perform the property appraisal services described in the scope of work that was included in RFP No. 23-020 and is attached hereto and marked as Exhibit A and as more specifically delineated in Consultant’s proposal, which is attached as Exhibit B and incorporated in full.

2. ALLOWABLE COSTS AND PAYMENTS
a. City neither warrants nor guarantees any minimum or maximum compensation to Consultant under this Agreement. Consultant shall be paid only for actual services performed under this Agreement at the rates and charges identified in Consultant’s Cost Proposal attached as Exhibit C. Consultant is the top-ranking consultant to provide property management services under RFP No. 23-020. The total compensation for these services provided under RFP No. 23-020 to perform them shall not exceed an $____ during the term of the Agreement, including any extension periods.
b. Consultant’s Cost Proposal attached as Exhibit C. The specified hourly rates shall include direct salary costs, employee benefits, overhead, and fee. These rates are not adjustable for the performance period set forth in this Agreement.

Page 1 ends

City Council
20 –
23 7/18/2023

c.
d.

Reimbursement for transportation and subsistence costs shall not exceed the rates as specified in the approved Cost Proposal.

When milestone cost estimates are included in the approved Cost Proposal, Consultant shall obtain prior written approval for a revised milestone cost estimate from City before exceeding such estimate.
e.
f.

Progress payments will be made monthly based on services provided and actual costs incurred.

Consultant shall not commence performance of work or services until this Agreement has been approved by City, and notification to proceed has been issued by City. No payment will be made prior to approval or for any work performed prior to approval of this Agreement.
j. Consultant will be reimbursed, as promptly as fiscal procedures will permit upon receipt by City of itemized invoices in triplicate. Invoices shall be submitted no later than 45 calendar days after the performance of work for which Consultant is billing. Invoices shall detail the work performed on each milestone. Invoices shall follow the format stipulated for the approved Cost Proposal and shall reference this Agreement number, Agreement expiration date, project title, and Certificate of Insurance expiration date. Credits due to City that include any equipment purchased under the Equipment Purchase provision of this Agreement must be reimbursed by Consultant prior to the expiration or termination of this Agreement. Invoices shall be emailed with addressed to City at the following address: City of Santa Ana, Public Works Agency M-36, 20 Civic Center Plaza, P.O. Box 1988, Santa Ana, CA 92702.
k. The period of performance for each Task shall be in accordance with dates specified. No Task will be written which extends beyond the expiration date of this Agreement.
l. The total amount payable by City for an individual Task shall not exceed the amount agreed to in the Task Order, unless authorized by contract amendment. m. If the Consultant fails to satisfactorily complete a deliverable according to the schedule set forth in a Tasks, no payment will be made until the deliverable has been satisfactorily completed.
n.
p.

Tasks may not be used to amend this Agreement and may not exceed the scope of work under this Agreement.

Consultant shall submit progress reports in accordance with the Tasks completed.

These reports shall be submitted at least once a month. The report should be sufficiently detailed for the City’s Project Manager to determine, if Consultant is performing to expectations, or is on schedule; to provide communication of interim

Page 2 ends

City Council
20 –
24 7/18/2023

findings, and to sufficiently address any difficulties or special problems encountered, so remedies can be developed.
q.
r.

Consultant’s Project Manager shall meet with City’s Project Manager, as needed, to discuss progress on the project(s).

This Agreement is valid and enforceable only if sufficient funds are made available to the City for the purpose of this Agreement. In addition, this Agreement is subject to any additional restrictions, limitations, conditions, or any statute enacted by Congress, the State Legislature, or the City that may affect the provisions, terms or funding of this Agreement in any manner.

3. COST PRINCIPLES AND ADMINISTRATIVE REQUIREMENTS
a. Consultant agrees that the Contract Cost Principles and Procedures, 48 CFR Part 31, Contract Cost Principals and Procedures, shall be used to determine the allowability of individual terms of cost. et seq., shall be used to determine the cost allowability of individual items.
b.
c.

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

Any costs for which payment has been made to Consultant that are determined by subsequent audit to be unallowable under 2 CFR, Part 200 and 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31.000 et seq., are subject to repayment by Consultant to City.

4. PERFORMANCE PERIOD
a. This Agreement shall go into effect on the date first written above, contingent upon approval by City, and Consultant shall commence work after notification to proceed by City. This Agreement shall end on <date>, unless terminated earlier in accordance with Section 21. The term of this Agreement may be extended for up to two 1-year periods upon a writing executed by the City Manager and City Attorney.
b. Consultant is advised that any recommendation for contract award is not binding on City until the Agreement is fully executed and approved by City.

5. STATE PREVAILING WAGE RATES
a. If applicable, Consultant shall comply with the State of California’s General Prevailing Wage Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local laws and ordinances applicable to the work.

Page 3 ends

City Council
20 –
25 7/18/2023

b.
c.

Any subcontract entered into as a result of this Agreement, if for more than $25,000 for public works construction or more than $15,000 for the alteration, demolition, repair, or maintenance of public works, shall contain all of the provisions of this Section, unless the awarding agency has an approved labor compliance program by the Director of Industrial Relations.

When prevailing wages apply to the services described in the scope of work, transportation and subsistence costs shall be reimbursed at the minimum rates set by the Department of Industrial Relations (DIR) as outlined in the applicable Prevailing Wage Determination. See http://www.dir.ca.gov. Consultant shall be responsible for any future adjustments to prevailing wage rates including, but not limited to, base hourly rates and employer payments as determined by the Department of Industrial Relations, Consultant is responsible for paying the appropriate rate, including escalations that take place during the term of the Agreement.
d. When prevailing rates apply, the Consultant is responsible for verifying compliance with certified payroll requirements. Invoice payment will not be made until the invoice is approved by City.

6. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes.

7. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement.

Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data, which were provided, to Consultant by the City. City shall not be limited in

Page 4 ends

City Council
20 –
26 7/18/2023

any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

8. MINIMUM INSURANCE REQUIREMENTS
A. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

B. Insurance coverage shall be at least as broad as:
1) Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3) Workers’ Compensation Insurance- as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
4) Professional Liability (Errors and Omissions) Insurance- appropriate to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

D. Other Insurance Provisions- the insurance policies are to contain, or be endorsed to contain, the following provisions:
1) Additional Insured Status- the City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20

Page 5 ends

City Council
20 –
27 7/18/2023

10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).
2) Primary Coverage- for any claims related to this contract, the Consultant’s insurance coverage shall be primary insurance primary coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.
3) Notice of Cancellation- each insurance policy required above shall state that coverage shall not be canceled, except with notice to the City. 4) Waiver of Subrogation- Consultant hereby grants to City a waiver of any right to subrogation, which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

E. Self-Insured Retentions- Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City.

F. Acceptability of Insurers- Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

G. Claims Made Policies- If any of the required policies provide coverage on a claims- made basis:
1) The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

H. Verification of Coverage- Consultant shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of

Page 6 ends

City Council
20 –
28 7/18/2023

the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

I. Subcontractors- Consultant shall require and verify that all subcontractors/subconsultants maintain insurance meeting all the requirements stated herein, and Contractor/Consultant shall ensure that City is an additional insured on insurance required from subcontractors/subconsultants.

J. Special Risks or Circumstances- City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

9. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold harmless the City, its officers, agents, employees, consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant or its subconsultants, agents, employees, or other persons acting on their behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement.

This indemnity and hold harmless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement.

City may make all reasonable decisions with respect to its representation in any legal proceeding.

Notwithstanding the foregoing, to the extent Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

10. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend, indemnify and hold harmless the City, its officers, agents, representatives, and employees against any and all liability, including costs, and attorney’s fees, for infringement of any United States’ letters patent, trademark, or copyright contained in the work product or documents provided by Consultant to the City pursuant to this Agreement.

Page 7 ends

City Council
20 –
29 7/18/2023

11. RETENTION OF RECORDS/AUDIT
For the purpose of determining compliance with Public Contract Code 10115, et seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et seq., when applicable, and other matters connected with the performance of this Agreement, pursuant to Government Code 8546.7, Consultant, subconsultants, and City shall maintain and make available for inspection all books, documents, papers, accounting records, and other evidence pertaining to the performance of the Agreement, including but not limited to, the costs of administering the Agreement. All parties shall make such materials available at their respective offices at all reasonable times during the Agreement period and for three years from the date of final payment under the Agreement. The state, State Auditor, City, FHWA, or any duly authorized representative of the Federal Government shall have access to any books, records, and documents of Consultant and its certified public accountants work papers that are pertinent to the contract and indirect cost rates (ICR) for audit, examinations, workpaper review, excerpts, and transactions, and copies thereof shall be furnished if requested.

12. AUDIT REVIEW PROCEDURES
a.
b.
c.

Any dispute concerning a question of fact arising under an interim or post audit of this Agreement that is not disposed of by mutual agreement shall be reviewed by the City.

Not later than 30 days after issuance of the final audit report, Consultant may request a review by the City of unresolved audit issues. The request for review will be submitted in writing, submitted to the project manager of RFP.

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

13. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. “Confidential Information” shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City.

Page 8 ends

City Council
20 –
30 7/18/2023

14. CONFLICT OF INTEREST
a. Consultant shall disclose any financial, business, or other relationship with City that may have an impact upon the outcome of this Agreement, or any ensuing City construction project. Consultant shall also list current clients who may have a financial interest in the outcome of this Agreement, or any ensuing City construction project that will follow.
b.
c.

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

Consultant agrees to complete any statements of economic interest if required by either City ordinance or State law.

15. REBATES, KICKBACKS, OR OTHER UNLAWFUL CONSIDERATION Consultant warrants that this Agreement was not obtained or secured through rebates kickbacks or other unlawful consideration, either promised or paid to any City employee. For breach or violation of this warranty, City shall have the right in its discretion; to terminate the contract without liability; to pay only for the value of the work actually performed; or to deduct from the contract price; or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.

16. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons:

To City: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30) P.O. Box 1988
Santa Ana, CA 92702-1988
Fax 714- 647-6956
Executive Director
Public Works
Agency City of
Santa Ana
20 Civic Center Plaza (M-21) P.O. Box 1988
Santa Ana, CA 92702
Fax 714-647-5635

Page 9 ends

City Council
20 –
31 7/18/2023

To Consultant:

A party may change its address by giving notice in writing to the other party. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these timeframes, weekends, federal, state, County or City holidays shall be excluded.

17. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and Consultant regarding the subject matter herein, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. 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.

18. SUBCONTRACTING
a, Nothing contained in this Agreement or otherwise, shall create any contractual relation between City and any subconsultant(s), and no subcontract shall relieve Consultant of its responsibilities and obligations hereunder. Consultant agrees to be as fully responsible to City for the acts and omissions of its subconsultant(s) and of persons either directly or indirectly employed by any of them as it is for the acts and omissions of persons directly employed by Consultant. Consultant’s obligation to pay its subconsultant(s) is an independent obligation from City’s obligation to make payments to the Consultant.
b. Consultant shall perform the work contemplated with resources available within its own organization and no portion of the work pertinent to this Agreement shall be subcontracted without written authorization by City, except that which is expressly identified in the approved Cost Proposal.
c.
d.

Consultant shall pay its subconsultants within fifteen (15) calendar days from receipt of each payment made to Consultant by City.

All subcontracts entered into as a result of this Agreement shall contain all the

Page 10 ends

City Council
20 –
32 7/18/2023

provisions stipulated in this Agreement to be applicable to subconsultants. e. Any substitution of subconsultant(s) must be approved in writing by City prior to the start of work by the subconsultant(s).

19. EQUIPMENT PURCHASE
a.
b.
c.

Prior authorization in writing by City shall be required before Consultant enters into any unbudgeted purchase order, or subcontract exceeding $5,000 for supplies, equipment, or consultant services. Consultant shall provide an evaluation of the necessity or desirability of incurring such costs.

For purchase of any item, service or consulting work not covered in Consultant’s Cost Proposal and exceeding $5,000 prior authorization by City, three competitive quotations must be submitted with the request, or the absence of bidding must be adequately justified.

Any equipment purchased as a result of this Agreement is subject to the following condition: “Consultant shall maintain an inventory of all nonexpendable property.

Nonexpendable property is defined as having a useful life of at least two years and an acquisition cost of $5,000 or more. If the purchased equipment needs replacement and is sold or traded in, City shall receive a proper refund or credit at the conclusion of the Agreement, or if the Agreement is terminated, Consultant may either keep the equipment and credit City in an amount equal to its fair market value, or sell such equipment at the best price obtainable at a public or private sale, in accordance with established City procedures and credit City in an amount equal to the sales price. If Consultant elects to keep the equipment, fair market value shall be determined at Consultant’s expense, based on a competent independent appraisal of such equipment. Appraisals shall be obtained from an appraiser mutually agreeable to by City and Consultant. If it is determined to sell the equipment, the terms and conditions of such sale must be approved in advance by City.” 2 CFR, Part 200 requires a credit to Federal funds when participating equipment with a fair market value greater than $5,000 is credited to the project.

20. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.

21. TERMINATION
a. City reserves the right to terminate this Agreement upon thirty (30) calendar days written notice to Consultant with the reasons for termination stated in the notice. Upon

Page 11 ends

City Council
20 –
33 7/18/2023

termination, City shall be entitled to all work including but not limited to, reports, investigations, appraisals, inventories, studies, analyses, drawings and data estimates performed to that date, whether completed or not.
b. Notwithstanding any provisions of this Agreement, Consultant shall not be relieved of liability to City for damages sustained by the City by virtue of any breach of this Agreement by Consultant, and City may withhold any payments due to Consultant until such time as the exact amount of damages, if any, due City from Consultant is determined.

22. JURISDICTION-VENUE
This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.

23. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement.

24. STATEMENT OF COMPLIANCE
a. Consultant’s signature affixed herein, and dated, shall constitute a certification under penalty of perjury under the laws of the State of California that Consultant has, unless exempt, complied with, the nondiscrimination program requirements of Government Code Section 12990 and Title 2, California Administrative Code, Section 11102.
b. During the performance of this Agreement, Consultant and its subconsultants shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (e.g., cancer), age (over 40), marital status, gender, gender identity, gender expression, sexual orientation, military or veteran status, and denial of family care leave. Consultant and subconsultants shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.
c. Consultant and subconsultants shall comply with the provisions of the Fair

Page 12 ends

City Council
20 –
34 7/18/2023

Employment and Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by reference and made a part hereof as if set forth in full. Consultant and its subconsultants shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.
d. The Consultant shall comply with regulations relative to Title VI (nondiscrimination in federally assisted programs of the Department of Transportation – Title 49 Code of Federal Regulations, Part 21 – Effectuation of Title VI of the 1964 Civil Rights Act). Title VI provides that the recipients of federal assistance will implement and maintain a policy of nondiscrimination in which no person in the state of California shall, on the basis of race, color, national origin, religion, sex, age, disability, be excluded from participation in, denied the benefits of or subject to discrimination under any program or activity by the recipients of federal assistance or their assignees and successors in interest. e. The Consultant, with regard to the work performed by it during the Agreement shall act in accordance with Title VI. Specifically, the Consultant shall not discriminate on the basis of race, color, national origin, religion, sex, age, or disability in the selection and retention of subconsultants, including procurement of materials and leases of equipment. The Consultant shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the U.S. DOT’s Regulations, including employment practices when the Agreement covers a program whose goal is employment.
f. Consultant, subrecipient or subconsultant will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 40 Code of Federal Regulations Part 26 on the basis of race, color, sex or national origin. In administering the City components of the Disadvantaged Business Enterprises (DBE) Program Plan, Consultant, subreceipient or subconsultant will not, directly, or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE Program Plan with respect to individuals of a particular race, color, sex, or national origin. g. Under 49 CFR 26.13(b): Consultant shall not discriminate on the basis of race, color, national origin, or sex in the performance of this Agreement, Consultant shall carryout applicable requirements of 49 CFR 26 in the award and administration of federal-aid contracts.

Failure by Consultant to carry out these requirements is a material breach of this

Page 13 ends

City Council
20 –
35 7/18/2023

Agreement, which may result in the termination of this Agreement or such other remedy, which the City deems appropriate, which may include, but is not limited to:
1) Withholding monthly progress payment if applicable;
2) Assessing sanctions;
3) Liquidating damages; and/or
4) Disqualifying consultant from future proposing as non-responsible. h. Termination and Substitution of DBE Subconsultants. Consultant shall utilize the specific DBEs listed to perform the work and supply the materials for which each is listed unless Consultant or DBE subconsultant obtains the City’s written consent.

Consultant shall not terminate or substitute a listed DBE for convenience and perform work with their own forces or obtain materials from other sources without authorization from City. Unless the City’s consent is provided, the Consultant shall not be entitled to any payment for work or material unless it is performed or supplied by the listed DBE on the Exhibit 10-02 Consultant Contract DBE Commitment form, included in the Bid.
i. Consultant shall notify City’s designated representative of any changes to its anticipated DBE participation before starting the affected work. Consultant shall notify City of any notices of decertification or certification regarding a subconsultant’s DBE status.
j. Consultant shall provide all required DBE forms to the City as required pursuant to applicable law.
k. All certifications required for the Bid are attached hereto as part of Exhibit B to the Agreement.

25. DEBARMENT AND SUSPENSION CERTIFICATION
a. Consultant’s signature affixed herein, shall constitute a certification under penalty of perjury under the laws of the State of California, that Consultant has complied with Title 2 CFR, Part 180, “OMB Guidelines to Agencies on Government wide Debarment and Suspension (nonprocurement)”, which certifies that he/she or any person associated therewith in the capacity of owner, partner, director, officer, or manager, is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency; has not been suspended, debarred, voluntarily excluded, or determined ineligible by any federal agency within the past three (3) years; does not have a proposed debarment pending; and has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three (3) years. Any exceptions to this certification must be disclosed to City.
b. Exceptions to the Federal Government Excluded Parties List System maintained by

Page 14 ends

City Council
20 –
36 7/18/2023

the General Services Administration are to be determined by the Federal Highway Administration.

26. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney’s fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement.

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

ATTEST: CITY OF SANTA ANA

KRISTINE RIDGE
City ManagerClerk of the Council

APPROVED AS TO FORM
SONIA R. CARVALHO
City Attorney

CONSULTANT
By: _
Laura A. Rossini
Chief Assistant City Attorney
Signing Authority

RECOMMENDED FOR APPROVAL

NABIL SABA
Executive Director
Public Works Agency

Page 15 ends

City Council
20 –
37 7/18/2023

EXHIBIT A

SCOPE OF SERVICES

Page 16 ends

City Council
20 –
38 7/18/2023

EXHIBIT B
CONSULTANT’S PROPOSAL

Page 17 ends

City Council
20 –
39 7/18/2023

EXHIBIT C

COMPENSATION

Page 18 ends

City Council
20 –
40 7/18/2023

Appendix
ATTACHMENT 3-1: NON-COLLUSION AFFIDAVIT

CERTIFICATIONS

NON-COLLUSION AFFIDAVIT
(Title 23 United States Code Section 112 and
Public Contract Code Section 7106)
To the CITY OF SANTA ANA DEPARTMENT OF PUBLIC WORKS
In accordance with Title 23 United States Code Section 112 and Public Contract Code 7106 the BIDDER declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the BIDDER has not directly or indirectly induced or solicited any other BIDDER to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived or agreed with any BIDDER or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the BIDDER has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the BIDDER or any BIDDER, or to fix any overhead, profit, or cost element of the bid price, or of that of any other BIDDER, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the BIDDER has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid.

Note: The above Non-collusion Affidavit is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Non-collusion Affidavit. BIDDERS are cautioned that making a false certification may subject the certifier to criminal prosecution.

Signed
State of California
County of
Subscribed and sworn to (or affirmed) before me on this day of , 20 , by , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Notary Public Signature Notary Public Seal
City of Santa Ana RFP
Page A3-1

City Council
20 –
41 7/18/2023

Appendix
ATTACHMENT 3-2: NON-LOBBYING CERTIFICATION

CERTIFICATIONS
The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:

1. No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.

2. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence any officer or employee of any federal 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, loan or cooperative agreement, the undersigned shall complete and submit a “Disclosure of Lobbying Activities”.

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

The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such sub recipients shall certify and disclose accordingly.

Firm
Signed and Printed Name:

Title
Date
City of Santa Ana RFP
Page A3-2

City Council
20 –
42 7/18/2023

Appendix
ATTACHMENT 3-3: NON-DISCRIMINATION CERTIFICATION

CERTIFICATIONS
The undersigned consultant or corporate officer, during the performance of this contract, certifies as follows:

1. The Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Consultant shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without, regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Consultant agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

2. The Consultant shall, in all solicitations or advertisements for employees placed by or on behalf of the Consultant, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.

3. The Consultant shall send to each labor union or representative of workers with which he/she has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers’ representatives of the Consultant’s commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

4. The Consultant shall comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

5. The Consultant shall furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his/her books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation, to ascertain compliance with such rules, regulations, and orders.

6. In the event of the Consultant’s non-compliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, the contract may be canceled, terminated, or suspended in whole or in part and the Consultant may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Execution Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulations, or order of the Secretary of Labor, or as otherwise provided by law.

7. The Consultant shall include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted City of Santa Ana RFP
Page A3-3

City Council
20 –
43 7/18/2023

by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontract or purchase order as the administering agency may direct as means of enforcing such provisions, including sanctions for noncompliance; provided, however, that in the event the Consultant becomes involved in, or is threatened with, litigation with a sub-consultant or vendor as a result of such direction by the administering agency, the Consultant may request that the United States enter into such litigation to protect the interests of the United States.

8. Pursuant to California Labor Code Section 1735, as added by Chapter 643 Stats. 1939, and as amended,
No discrimination shall be made in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical handicaps, mental condition, marital status, or sex of such persons, except as provided in Section 1420, and any consultant of public works violating this Section is subject to all the penalties imposed for a violation of the Chapter.

Signed:

Title:

Firm:

Date:

City of Santa Ana RFP
Page A3-4

City Council
20 –
44 7/18/2023

Appendix
ATTACHMENT 4

CALTRANS ATTACHMENTS
Please see below.

City of Santa Ana RFP 23-020
Page A4-1

City Council
20 –
45 7/18/2023

Inspector General
California Department of Transportation
Financial Document Review (FDR) Request Form
• To be completed by Local Public Agencies (LPA) - one per contract. • For new proposed Architectural & Engineering (A&E) consultant LPA contracts of $1 million or greater. • For amendments, use only when there are additional subconsultants or changes in Indirect Cost Rate (ICR).

Email to:
[email protected] Date:

California State Department of Transportation
Independent Oﬃce of Audits and Investigations
Attention: Financial Document Review Manager
Federal/State Project Number:
(describe)Check one: New Contract
A&E Contract Number:

Prime Consultant Full Legal Name:

Amendment Other
Total Contract or Amended Amount of:

Project Description:

All Primes and Safe Harbor Rate (SHR) Applicants must be listed below. In addition, complete below for all Sub-Consultant(s) with estimated contract costs of $500,000 and above on this contract. Sub-consultant(s) with less than an estimated contract cost of $500,000 do not need to be included unless they are SHR applicants:
(Add pages if necessary.)
Caltrans ICR AcceptanceConsultant’s Name: Estimated Contract Cost Category ID # (if available) I verify we received ﬁnancial documents from the prime and sub-consultants based on the requirements speciﬁed in this form’s Checklist seen on following page.

Name (Print): Title:

Signature:

Name of Local Agency and Department:

Address:

Phone: Email:
1 City Council
20 –
46 7/18/2023

Checklist
FDR Requirements for A&E Consultant Indirect Cost Rate
• Requirements for total contract amount equal to or greater than $1,000,000. • Prime and all sub-consultant(s) with estimated contract costs of $500,000 and above must provide the documents marked below based on their applicable category.

Instructions
• LPAs are required to complete this form and include all applicable required documents upon submission. • For financial document packages received between July 1 through December 31, the previous years ICR is the one that must be submitted.
• ICR Acceptance ID #: This is an identification number issued by Caltrans upon review and acceptance of consultant's ICR(s) schedule for a specific fiscal year. The Caltrans ID# ICR FYE must agree with the period when this form and financial documents are submitted as described above. If any consultant already has an accepted ID # for the applicable period then include that number on the schedule on page 1. For those consultants no additional documentation needs to be submitted at this time.

Please Note: Items on this checklist may not be all inclusive. IOAI reserves the right to request additional documents as deemed necessary.

CATEGORY 1:

Consultants with
Cognizant Approval
Letter for ICR FYE
Proposed
CATEGORY 2:

Consultants Requesting
Safe Harbor Rate
CATEGORY 3:

Consultants with CPA
Audited ICR Reports
CATEGORY 4:

Consultants with
Participation Amount of
$500K or Greater and
No CPA Report
Type of Financial
Documents and
Information for ICR FYE
Proposed
Paycheck Protection Program
(PPP) Loan Questionnaire
Certiﬁcation of Indirect Costs
and Financial Management
System Form
CPA Audited ICR Report and
Schedule (Prime Consultant
must have a CPA Audited ICR
Schedule)
ICR Schedule with FAR
References for Disallowed
Costs (a)
Cognizant Approval Letter for
the ICR FYE proposed
AASHTO Internal Control
Questionnaire Appendix B
Safe Harbor Rate: Consultant
Certiﬁcation of Eligibility of
Contract Costs and Financial
Management System
(a) See Table 8-1 of the AASHTO Audit Guide for a listing of common unallowable costs. 2 City Council
20 –
47 7/18/2023

CATEGORY 1:

Consultants with
Cognizant Approval
Letter for ICR FYE
Proposed
CATEGORY 2:

Consultants Requesting
Safe Harbor Rate
CATEGORY 3:

Consultants with CPA
Audited ICR Reports
CATEGORY 4:

Consultants with
Participation Amount of
$500K or Greater and
No CPA Report
Type of Financial
Documents and
Information for ICR FYE
Proposed
After the review of this form, some or all of the documents listed below may be requested:

Post-Closing Trial Balance
and Supplemental
Reconciliation Schedule
(to tie the proposed ICR
Schedule to the Trial Balance)
✔ ✔
Prior Year ICR Schedule
Chart of Accounts
Income Statement
Uncompensated Overtime
Adjustments
Vacation/Sick Policy
Bonus Policy
Executive Compensation
Analysis (ECA)
Related Party Rent Analysis
Vehicle, Equipment, and
Other Direct Costs Schedules
Following documents can be retrieved from: https://oig.dot.ca.gov/resources •
•
•
•
Paycheck Protection Program (PPP) Loan Questionnaire
Certiﬁcation of Indirect Costs and Financial Management System AASHTO Internal Control Questionnaire Appendix B
Safe Harbor Rate – Consultant Certiﬁcation of Eligibility of Contract Costs and Financial Management System
3 City Council
20 –
48 7/18/2023

Local Assistance Procedures Manual Exhibit 10-O2
Consultant Contract DBE Commitment
EXHIBIT 10-O2 CONSULTANT CONTRACT DBE COMMITMENT

1. Local Agency: 2. Contract DBE Goal:

3. Project Description:

4. Project Location:

5. Consultant's Name: 6. Prime Certified DBE:  7. Total Contract Award Amount:

8. Total Dollar Amount for ALL Subconsultants: 9. Total Number of ALL Subconsultants:

11. DBE
Certification
Number

13. DBE
Dollar
Amount

10. Description of Work, Service, or Materials
Supplied 12. DBE Contact Information
Local Agency to Complete this Section
$20. Local Agency Contract

14. TOTAL CLAIMED DBE PARTICIPATION

21. Federal-Aid Project Number:
%22. Contract Execution
Date:

Local Agency certifies that all DBE certifications are valid and information on this form is complete and accurate.

IMPORTANT: Identify all DBE firms being claimed for credit, regardless of tier. Written confirmation of each listed DBE is required.

23. Local Agency Representative's Signature

25. Local Agency Representative's Name

24. Date 15. Preparer's Signature

17. Preparer's Name

19. Preparer's Title

16. Date

26. Phone 18. Phone

27. Local Agency Representative's Title
DISTRIBUTION: 1. Original – Local Agency

2. Copy – Caltrans District Local Assistance Engineer (DLAE). Failure to submit to DLAE within 30 days of contract execution may result in de-obligation of federal funds on contract.

ADA Notice: For individuals with sensory disabilities, this document is available in alternate formats. For information call (916) 654-6410 or TDD (916) 654- 3880 or write Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.

Page 1 of 2 ends

July 23, 2015

City Council
20 –
49 7/18/2023

Local Assistance Procedures Manual Exhibit 10-O2
Consultant Contract DBE Commitment
INSTRUCTIONS – CONSULTANT CONTRACT DBE COMMITMENT

CONSULTANT SECTION

1. Local Agency - Enter the name of the local or regional agency that is funding the contract.

2. Contract DBE Goal - Enter the contract DBE goal percentage as it appears on the project advertisement.

3. Project Description - Enter the project description as it appears on the project advertisement (Bridge Rehab, Seismic Rehab, Overlay, Widening, etc).

4. Project Location - Enter the project location as it appears on the project advertisement.

5. Consultant’s Name - Enter the consultant’s firm name.

6. Prime Certified DBE - Check box if prime contractor is a certified DBE.

7. Total Contract Award Amount - Enter the total contract award dollar amount for the prime consultant.

8. Total Dollar Amount for ALL Subconsultants – Enter the total dollar amount for all subcontracted consultants.

SUM = (DBEs + all Non-DBEs). Do not include the prime consultant information in this count.

9. Total number of ALL subconsultants – Enter the total number of all subcontracted consultants. SUM = (DBEs + all Non-DBEs). Do not include the prime consultant information in this count.

10. Description of Work, Services, or Materials Supplied - Enter description of work, services, or materials to be provided. Indicate all work to be performed by DBEs including work performed by the prime consultant’s own forces, if the prime is a DBE. If 100% of the item is not to be performed or furnished by the DBE, describe the exact portion to be performed or furnished by the DBE. See LAPM Chapter 9 to determine how to count the participation of DBE firms.

11. DBE Certification Number - Enter the DBE’s Certification Identification Number. All DBEs must be certified on the date bids are opened.

12. DBE Contact Information - Enter the name, address, and phone number of all DBE subcontracted consultants.

Also, enter the prime consultant’s name and phone number, if the prime is a DBE.

13. DBE Dollar Amount - Enter the subcontracted dollar amount of the work to be performed or service to be provided. Include the prime consultant if the prime is a DBE. See LAPM Chapter 9 for how to count full/partial participation.

14. Total Claimed DBE Participation - $: Enter the total dollar amounts entered in the “DBE Dollar Amount” column. %: Enter the total DBE participation claimed (“Total Participation Dollars Claimed” divided by item “Total Contract Award Amount”). If the total % claimed is less than item “Contract DBE Goal,” an adequately documented Good Faith Effort (GFE) is required (see Exhibit 15-H DBE Information - Good Faith Efforts of the LAPM).

15. Preparer’s Signature - The person completing the DBE commitment form on behalf of the consultant’s firm must sign their name.

16. Date - Enter the date the DBE commitment form is signed by the consultant’s preparer.

17. Preparer’s Name - Enter the name of the person preparing and signing the consultant’s DBE commitment form.

18. Phone - Enter the area code and phone number of the person signing the consultant’s DBE commitment form.

19. Preparer’s Title - Enter the position/title of the person signing the consultant’s DBE commitment form.

LOCAL AGENCY SECTION

20. Local Agency Contract Number - Enter the Local Agency contract number or identifier.

21. Federal-Aid Project Number - Enter the Federal-Aid Project Number.

22. Contract Execution Date - Enter the date the contract was executed.

23. Local Agency Representative’s Signature - The person completing this section of the form for the Local Agency must sign their name to certify that the information in this and the Consultant Section of this form is complete and accurate.

24. Date - Enter the date the DBE commitment form is signed by the Local Agency Representative.

25. Local Agency Representative’s Name - Enter the name of the Local Agency Representative certifying the consultant’s DBE commitment form.

26. Phone - Enter the area code and phone number of the person signing the consultant’s DBE commitment form.

27. Local Agency Representative Title - Enter the position/title of the Local Agency Representative certifying the consultant’s DBE commitment form.

Page 2 of 2 ends

July 23, 2015

City Council
20 –
50 7/18/2023

Local Assistance Procedures Manual Exhibit 10-O1
Consultant Proposal DBE Commitment
EXHIBIT 10-O1 CONSULTANT PROPOSAL DBE COMMITMENT

1. Local Agency: 2. Contract DBE Goal:

3. Project Description:

4. Project Location:

5. Consultant's Name: 6. Prime Certified DBE: ✔

8. DBE
Certification
Number

7. Description of Work, Service, or Materials
Supplied 9. DBE Contact Information 10. DBE %
Local Agency to Complete this Section

17. Local Agency Contract Number:

18. Federal-Aid Project Number:

11. TOTAL CLAIMED DBE PARTICIPATION %

19. Proposed Contract Execution Date:

20. Consultant’s Ranking after Evaluation: __________________________ IMPORTANT: Identify all DBE firms being claimed for credit, regardless of tier. Written confirmation of each listed DBE is required.Local Agency certifies that all DBE certifications are valid and information on this form is complete and accurate.

12. Preparer's Signature

14. Preparer's Name

16. Preparer's Title

13. Date

15. Phone
DISTRIBUTION: Original – Included with consultant’s proposal to local agency.

LPP 18-01 Page 1 of 2
January 2019

City Council
20 –
51 7/18/2023

Local Assistance Procedures Manual Exhibit 10-O1
Consultant Proposal DBE Commitment
INSTRUCTIONS – CONSULTANT PROPOSAL DBE COMMITMENT

CONSULTANT SECTION

1. Local Agency - Enter the name of the local or regional agency that is funding the contract.

2. Contract DBE Goal - Enter the contract DBE goal percentage as it appears on the project advertisement.

3. Project Location - Enter the project location as it appears on the project advertisement.

4. Project Description - Enter the project description as it appears on the project advertisement (Bridge Rehab, Seismic Rehab, Overlay, Widening, etc.).

5. Consultant’s Name - Enter the consultant’s firm name.

6. Prime Certified DBE - Check box if prime contractor is a certified DBE.

7. Description of Work, Services, or Materials Supplied - Enter description of work, services, or materials to be provided. Indicate all work to be performed by DBEs including work performed by the prime consultant’s own forces, if the prime is a DBE. If 100% of the item is not to be performed or furnished by the DBE, describe the exact portion to be performed or furnished by the DBE. See LAPM Chapter 9 to determine how to count the participation of DBE firms.

8. DBE Certification Number - Enter the DBE’s Certification Identification Number. All DBEs must be certified on the date bids are opened.

9. DBE Contact Information - Enter the name, address, and phone number of all DBE subcontracted consultants.

Also, enter the prime consultant’s name and phone number, if the prime is a DBE.

10. DBE % - Percent participation of work to be performed or service provided by a DBE. Include the prime consultant if the prime is a DBE. See LAPM Chapter 9 for how to count full/partial participation.

11. Total Claimed DBE Participation % - Enter the total DBE participation claimed. If the total % claimed is less than item “Contract DBE Goal,” an adequately documented Good Faith Effort (GFE) is required (see Exhibit 15-H DBE Information - Good Faith Efforts of the LAPM).

12. Preparer’s Signature - The person completing the DBE commitment form on behalf of the consultant’s firm must sign their name.

13. Date - Enter the date the DBE commitment form is signed by the consultant’s preparer.

14. Preparer’s Name - Enter the name of the person preparing and signing the consultant’s DBE commitment form.

15. Phone - Enter the area code and phone number of the person signing the consultant’s DBE commitment form.

16. Preparer’s Title - Enter the position/title of the person signing the consultant’s DBE commitment form.

LOCAL AGENCY SECTION

17. Local Agency Contract Number - Enter the Local Agency contract number or identifier.

18. Federal-Aid Project Number - Enter the Federal-Aid Project Number.

19. Proposed Contract Execution Date - Enter the proposed contract execution date.

20. Consultant’s Ranking after Evaluation – Enter consultant’s ranking after all submittals/consultants are evaluated. Use this as a quick comparison for evaluating most qualified consultant.

21. Local Agency Representative’s Signature - The person completing this section of the form for the Local Agency must sign their name to certify that the information in this and the Consultant Section of this form is complete and accurate.

22. Date - Enter the date the DBE commitment form is signed by the Local Agency Representative.

23. Local Agency Representative’s Name - Enter the name of the Local Agency Representative certifying the consultant’s DBE commitment form.

24. Phone - Enter the area code and phone number of the person signing the consultant’s DBE commitment form.

25. Local Agency Representative Title - Enter the position/title of the Local Agency Representative certifying the consultant’s DBE commitment form.

LPP 18-01 Page 2 of 2
January 2019

City Council
20 –
52 7/18/2023

Local Assistance Procedures Manual EXHBIT 10-1
Notice to Proposers DBE Information
EXHIBIT 10-1 NOTICE TO PROPOSERS DBE INFORMATION
I(Federally funded projects only)

7.00%The Agency has established a DBE goal for this Contract of _____

1. TERMS AS USED IN THIS DOCUMENT
• The term "Disadvantaged Business Enterprise" or "DBE" means a for-profit small business concern owned and controlled by a socially and economically disadvantaged person(s) as defined in Title 49, Code of Federal Regulations (CFR), Part 26.5.
•
•
•
The term "Agreement" also means "Contract."
Agency also means the local entity entering into this contract with the Contractor or Consultant.

The term "Small Business" or "SB" is as defined in 49 CFR 26.65.

2. AUTHORITY AND RESPONSIBILITY
A. DBEs and other small businesses are strongly encouraged to participate in the performance of Contracts financed in whole or in part with federal funds (See 49 CFR 26, "Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs").

The Consultant must ensure that DBEs and other small businesses have the opportunity to participate in the performance of the work that is the subject of this solicitation and should take all necessary and reasonable steps for this assurance. The proposer must not discriminate on the basis of race, color, national origin, or sex in the award and performance of subcontracts.

B. Proposers are encouraged to use services offered by financial institutions owned and controlled by DBEs.

3. SUBMISSION OF DBE INFORMATION
If there is a DBE goal on the contract, Exhibit 10-01 Consultant Pꢀposal DBE Commitment must be included in the Proposal. In order for a proposer to be considered responsible and responsive, the proposer must make good faith efforts to meet the goal established for the contract. If the goal is not met, the proposer must document adequate good faith efforts. All DBE participation will be counted towards meeting the contract goal; therefore, all DBE participation shall be collected and reported.

Exhibit 10-02 Consultant Contract DBE Infoꢁation must be included in best qualified consultant's executed consultant contract. Even if no DBE participation will be reported, the successful proposer must execute and return the form.

4. DBE PARTICIPATION GENERAL INFORMATION
It is the proposer's responsibility to be fully informed regarding the requirements of 49 CFR, Part 26, and the Department's DBE program developed pursuant to the regulations. Particular attention is directed to the following:

A. A DBE must be a small business firm defined pursuant to 13 CFR 121 and be certified through the California Unified Certification Program (CUCP).

B. A certified DBE may participate as a prime consultant, subconsultant, joint venture partner, as a vendor of material or supplies, or as a trucking company.

C. A DBE proposer not proposing as a joint venture with a non-DBE, will be required to document one or a combination of the following:

1. The proposer is a DBE and will meet the goal by performing work with its own forces.

2. The proposer will meet the goal through work performed by DBE subconsultants, suppliers or trucking companies.

3. The proposer, prior to proposing, made adequate good faith efforts to meet the goal.

Page 1 of 2 ends

January 2020

City Council
20 –
53 7/18/2023

Local Assistance Procedures Manual EXHBIT 10-1
Notice to Proposers DBE Information
D. A DBE joint venture partner must be responsible for specific contract items of work or clearly defined portions thereof. Responsibility means actually performing, managing, and supervising the work with its own forces. The DBE joint venture partner must share in the capital contribution, control, management, risks and profits of the joint venture commensurate with its ownership interest.

E. A DBE must perform a commercially useful function pursuant to 49 CFR 26.55, that is, a DBE firm must be responsible for the execution of a distinct element of the work and must carry out its responsibility by actually performing, managing and supervising the work.

F. The proposer shall list only one subconsultant for each portion of work as defined in their proposal and all DBE subconsultants should be listed in the bid/cost proposal list of subconsultants.

G. A prime consultant who is a certified DBE is eligible to claim all of the work in the Contract toward the DBE participation except that portion of the work to be performed by non-DBE subconsultants.

5. RESOURCES
A. The CUCP database includes the certified DBEs from all certifying agencies participating in the CUCP.

If you believe a firm is certified that cannot be located on the database, please contact the Caltrans Office of Certification toll free number 1-866-810-6346 for assistance.

B. Access the CUCP database from the Department of Transportation, Office of Civil Rights website

1. Click on the link titled Disadvantaged Business Enterprise;

2. Click on Search for a DBE Firm link;

3. Click on Access to the DBE Query Form located on the first line in the center of the page.

Searches can be performed by one or more criteria. Follow instructions on the screen.

6. MATERIALS OR SUPPLIES PURCHASED FROM DBES COUNT TOWARDS THE DBE GOAL UNDER THE FOLLOWING CONDITIONS:

A. If the materials or supplies are obtained from a DBE manufacturer, count 100 percent of the cost of the materials or supplies. A DBE manufacturer is a firm that operates or maintains a factory, or establishment that produces on the premises the materials, supplies, articles, or equipment required under the Contract and of the general character described by the specifications.

B. If the materials or supplies purchased from a DBE regular dealer, count 60 percent of the cost of the materials or supplies. A DBE regular dealer is a firm that owns, operates or maintains a store, warehouse, or other establishment in which the materials, supplies, articles or equipment of the general character described by the specifications and required under the Contract are bought, kept in stock, and regularly sold or leased to the public in the usual course of business. To be a DBE regular dealer, the firm must be an established, regular business that engages, as its principal business and under its own name, in the purchase and sale or lease of the products in question. A person may be a DBE regular dealer in such bulk items as petroleum products, steel, cement, gravel, stone or asphalt without owning, operating or maintaining a place of business provided in this section.

C. If the person both owns and operates distribution equipment for the products, any supplementing of regular dealers' own distribution equipment shall be, by a long-term lease agreement and not an ad hoc or Agreement-by-Agreement basis. Packagers, brokers, manufacturers' representatives, or other persons who arrange or expedite transactions are not DBE regular dealers within the meaning of this section.

D. Materials or supplies purchased from a DBE, which is neither a manufacturer nor a regular dealer, will be limited to the entire amount of fees or commissions charged for assistance in the procurement of the materials and supplies, or fees or transportation charges for the delivery of materials or supplies required on the job site, provided the fees are reasonable and not excessive as compared with fees charged for similar services.

Page 2 of 2 ends

January 2020

City Council
20 –
54 7/18/2023

Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal
EXHIBIT 10-H1 COST PROPOSAL Page 1 of 3

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (DESIGN, ENGINEERING AND ENVIRONMENTAL STUDIES)
Note: Mark-ups are Not Allowed ☐ Prime Consultant ☐ Subconsultant ☐ 2 nd Tier Subconsultant Consultant __________________________________________________________ Project No. _______________________ Contract No. ____________________ Date ____________________

DIRECT LABOR
Classification/Title Name Hours Actual Hourly Rate Total $ 0.00____________________________ ________
____________________________ ________
____________________________ ________
____________________________ ________
$ 0.00
$ 0.00
$ 0.00

LABOR COSTS
a) Subtotal Direct Labor Costs $ 0.00_______________
_______________b) Anticipated Salary Increases (see page 2 for calculation) $ 0.00c) TOTAL DIRECT LABOR COSTS [(a) + (b)] _______________

INDIRECT COSTS
d) Fringe Benefits (Rate: 0_._0_0_%_ )
f) Overhead (Rate: _0_._0_0_% )
$ 0.00e) Total Fringe Benefits [(c) x (d)] _______________ g) Overhead [(c) x (f)] ___________$__0_.0_0
h) General and Administrative (Rate: _0_.0_0_%_ ) i) Gen & Admin [(c) x (h)] ___________$__0_.0_0 j) TOTAL INDIRECT COSTS [(e) + (g) + (i)] _______________ k) TOTAL FIXED FEE [(c) + (j)] x fixed fee _0_.0_0_%__ ] ___________$_0_._00 l) CONSULTANT’S OTHER DIRECT COSTS (ODC) – ITEMIZE (Add additional pages if necessary) Description of Item Quantity Unit Unit Cost Total
$ 0.00

FIXED FEE
Mileage Costs $ 0.00
Equipment Rental and Supplies $ 0.00
Permit Fees
Plan Sheets
Test
$ 0.00
$ 0.00
$ 0.00
$ 0.00l) TOTAL OTHER DIRECT COSTS
m) SUBCONSULTANTS’ COSTS (Add additional pages if necessary) Subconsultant 1:

Subconsultant 2:

Subconsultant 3:

Subconsultant 4:
m) TOTAL SUBCONSULTANTS’ COSTS $ 0.00
n) TOTAL OTHER DIRECT COSTS INCLUDING SUBCONSULTANTS [(l)+(m)] ___________________$ 0.00 TOTAL COST [(c) + (j) + (k) + (n)] _________________$_0_._0_0 NOTES:

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks (**). All costs must comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended. Indirect cost rates shall be updated on an annual basis in accordance with the consultant’s annual accounting period and established by a cognizant agency or accepted by Caltrans.

3. Anticipated salary increases calculation (page 2) must accompany.

Page 1 of 9 ends

January 2020

City Council
20 –
55 7/18/2023

Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal
EXHIBIT 10-H1 COST PROPOSAL Page 2 of 3

COST-PLUS-FIXED FEE OR LUMP SUM OR FIRM FIXED PRICE CONTRACTS (CALCULATIONS FOR ANTICIPATED SALARY INCREASES)

1. Calculate Average Hourly Rate for 1st year of the contract (Direct Labor Subtotal divided by total hours) Direct Labor
Subtotal per Cost
Proposal
Total Hours per
Cost Proposal
Avg
Hourly
Rate
5Year
Contract
Duration
= Year 1Avg
Hourly Rate
$ꢀ5ꢂ,ꢂꢂꢂꢃꢂꢂ 5ꢂꢂ $5ꢂꢃꢂꢂ

2. Calculate hourly rate for all years (Increase the Average Hourly Rate for a year by propꢀed ꢁcalation%) Avg Hourly Rate Proposed Escalation
Year 1
Year ꢀ
Year 3
Year 4
$5ꢂꢃꢂꢂ
$51ꢃꢂꢂ
$5ꢀꢃꢂꢀ
$53ꢃꢂ6
+
+
+
+
ꢀ%
ꢀ%
ꢀ%
ꢀ%
=
=
=
=
$51ꢃꢂꢂ
$5ꢀꢃꢂꢀ
$53ꢃꢂ6
$54ꢃ1ꢀ
Year ꢀ Avg Hourly Rate
Year 3Avg Hourly Rate
Year 4 Avg Hourly Rate
Year 5Avg Hourly Rate

3. Calculate estimated hours per year (Multiply estimate% each year by total hours) Estimated % Completed
Each Year
Total Hours per Cost Total Hours per
Proposal Year
=
=
=
=
=
=
Year 1
Year ꢀ
Year 3
Year 4
Years
Total
ꢀꢂꢃꢂ%
4ꢂꢂ%
15ꢃꢂ%
15ꢃꢂ%
1ꢂꢂ%
1ꢂꢂ%
5ꢂꢂꢂ
5ꢂꢂꢂ
5ꢂꢂꢂ
5ꢂꢂꢂ
5ꢂꢂꢂ
Total
1ꢂꢂꢂ
ꢀꢂꢂꢂ
75ꢂ
Estimated Hours Year 1
Estimated Hours Year ꢀ
Estimated Hours Year 3
Estimated Hours Year 4
Estimated Hours Year 5
75ꢂ
5ꢂꢂ
5ꢂꢂꢂ

4. Calculate Total Cꢀꢂ including Escalation (Multiply Average Hourly Rate by the number of hours) Avg Hourly Rate
(calculated above)
Estimated hours
(calculated above)
Cost per
Year
=
=
=
=
=
=
=
=
Year 1
Year ꢀ
Year 3
Year 4
Years
$5ꢂꢃꢂꢂ
$51ꢃꢂꢂ
$5ꢀꢃꢂꢀ
$53ꢃꢂ6
$54ꢃ1ꢀ
1ꢂꢂꢂ
ꢀꢂꢂꢂ
75ꢂ
$5ꢂ,ꢂꢂꢂꢃꢂꢂ Estimated HoursYear 1
$1ꢂꢀ,ꢂꢂꢂꢃꢂꢂ Estimated Hours Year ꢀ
$39,ꢂ15ꢃꢂꢂ Estimated HoursYear 3
$39,795ꢃ3ꢂ Estimated HoursYear 4
$ꢀ7,ꢁꢂꢃ8ꢂ Estimated HoursYear 5
$ꢀ57,871ꢃ1ꢂ
75ꢂ
5ꢂꢂ
Total Direct Labor Cost with Escalation
Direct Labor Subtotal before Escalation
Estimated total of Direct Labor Salary
Increase
$ꢀ5ꢂ,ꢂꢂꢂꢃꢂꢂ
Transfer to Page 1
$7,871.10
NOTES:
1ꢃ This is not the only way to estimatesalary increasesꢃ Other methods will be accepted if they clearlyindicate the %ꢃincrease, the# of years of the contract, and a breakdown of the labor to be performed each year ꢀꢃ An estimation that is based on direct labor multiplied by salary increase % multiplied by the# of years is not acceptableꢃ =(i eꢃ $ꢀ5ꢂ,ꢂꢂꢂx ꢀ% x 5 yrs $ꢀ5,ꢂꢂꢂ is not an acceptable methodology) 3ꢃ This assumes that one year will be worked at the rate on the cost proposal before salary increases are grantedꢃ 4ꢃ Calculations for anticipated salary escalation must be providedꢃ Page ꢀ of 9
January ꢀꢂꢀꢂ

City Council
20 –
56 7/18/2023

Local Assistance Procedures Manual EXHIBIT 10-H1
Cost Proposal
EXHIBIT 10-H1 COST PROPOSAL Page 3 of 3
Certification of Direct Costs:

I, the undersigned, ceꢀify to the best of my knowledge and belief that all direct costs identified on the cost proposal{s) in this contract are actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

1. Generally Accepted Accounting Principles {GAAP)

2. Terms and conditions of the contract

3. Title 23 United States Code Section 112 - Letting of Contracts

4. 48 Code of Federal Regulations Part 31 - Contract Cost Principles and Procedures

5. 23 Code of Federal Regulations Paꢀ 172 - Procurement, Management, and Administration of Engineering and Design Related Service

6. 48 Code of Federal Regulations Paꢀ 9904 - Cost Accounting Standards Board {when applicable)
All costs must be applied consistently and fairly to all contracts. All documentation of compliance must be retained in the project files and be in compliance with applicablefederal and state requirements.

Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement.

Local governments are responsible for applying only cognizant agency approved or Caltrans accepted Indirect Cost Rate{s).

Prime Consultant or Subconsultant Certifying:

Name:_______________ Title*:

Siꢀature:_ _ _ _ __ _ __ _ _ _ __ Date of Ceꢀification {mm/dd/yyyy): _____ Email: ______ _________ Phone Number:

Address:_________________________________
*An individual executive or financial officer of the consultant's or subconsultant's organization at a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

List services the consultant is providinq under the proposed contract:

Page 3 of 9 ends

Januaꢀ 2020

City Council
20 –
57 7/18/2023

Local Assistance Procedures Manual EXHIBIT 10-H2
Cost Proposal
EXHIBIT 10-H2 COST PROPOSAL Page 1 of3

SPECIFIC RATE OF COMPENSATION (USE FOR ON-CALL OR AS-NEEDED CONTRACTS) (CONSTRUCTION ENGINEERING AND INSPECTION CONTRACTS)
Note: Mark-ups are Not Allowed
Consultant __________________ D Prime Consultant D Subconsultant D 2nd Tier Subconsultant Project No. _ Contract No. - - - - - - -- Participation Amount $ ________ _ Date- - -- _________
For Combined Rate
=Fringe Benefit% + General &Administrative% Combined ICR% OR
For Home Office Rate
=
=
=
Fringe Benefit% + General &Administrative%
Frinqe Benefit% + General &Administrative%
Home Oﬀice ICR%
Field Oﬀice ICR%
For Field Office Rate
Fee %

BILLING INFORMATION CALCULATION INFORMATION
1Name/Job Title/Classification Hourly Billing Rates2 Effective Date of Hourly Rate Actual orAvg. % or$ Hourly Range- Straight3 OT(1.5x) OT(2x) From To Hourly Rate4 Increase for Classifications Only Not ApplicableJohn Doe- Project Manager* $0.00
$0.00
$0.00
$0.00
$0.00 01/01/2016
01/01/2017
12/31/2016
12/31/2017
$0.00
Civil Engineer II $0.00 $0.00 0.0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
01/01/2018
01/01/2016
01/01/2017
01/01/2018
01/01/2016
12/31/2018
12/31/2016
12/31/2017
12/31/2018
12/31/2016
$0.00
$0.00
$0.00
$0.00
$0.00

0.0%
Sue Jones- Construction
Engineeri1nspector
Not Applicable
Not Applicable

0.0%

0.0%Engineer I
Buddy Black - Claims Engineer
Engineer Ill $0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
01/01/2017
01/01/2018
01/01/2016
01/01/2017
12/31/2017
12/31/2018
12/31/2016
12/31/2017
$0.00
$0.00
$0.00
$0.00

0.0%

0.0%
Land Surveyor $00-$00
$00-$000.0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
01/01/2018
01/01/2016
01/01/2017
01/01/2018
12/31/2018
12/31/2016
12/31/2017
12/31/2018
$0.00
$0.00

0.0% $00-$00
$00-$00Technician
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.0%

0.0%
$00-$00
$00-$00
(Add pag as necessary)

Page 4 ends

January 2020

City Council
20 –
58 7/18/2023

Local Assistance Procedures Manual
NOTES:

EXHIBIT 10-H2
Cost Proposal

1. Key personnel must be marked with an asterisk (*) and employees that are subject to prevailing wage requirements must be marked with two asterisks ().All costsmust comply with the Federal cost principles. Subconsultants will provide their own cost proposals.

2. The cost proposal format shall not be amended.= + +3. Billing rate actual hourly rate * (1 ICR) * (1 Fee). Indirect cost rates shall be updated on an annual basis in accordance with the consultants annual accountingperiod and established by a cognizant agency or accepted by Caltrans.All costs must comply with the Federal cost principles for reimbursement.

4. For named employees and key personnel enter the actual hourly rate. For classifications only, enter the Average Hourly Rate for that classification. EXHIBIT 10-H2 COST PROPOSAL Page2ot3

SPECIFIC RATE OF COMPENSATION (USE FOR ON-CALL OR AS-NEEDED CONTRACTS) (CONSTRUCTION ENGINEERING AND INSPECTION CONTRACTS)
□ Prime Consultant □ SubconsultantConsultant ___________________ -----------
Date _________
Project No. _ Contract No.
__________
SCHEDULE OF OTHER DIRECT COST ITEMS (Add additional pages as necessary) Description of Item Quantity Unit Unit Cost Total
Mileage Costs 2 1 $ 10.00 $ 20.00
Equipment Rental and Supplies 2
3 $ 20.00
$ 30.00
$ 40.00
$ 90.00Permit Fees
Plan Sheets
Test
$ 0.00
$ 0.00
Vehicle $ 0.00
Subconsultant 1:

Subconsultant 2:

Subconsultant 3:

Subconsultant 4:
$ 100.00
$ 200.00
$ 300.00
$ 500.00
Subconsultant 5:

Note: Add additional pages if necessary.

NOTES:

1. List other direct cost items with estimated costs. These costs should be competitive in their respective industries and supported with appropriate documentation.

2. Proposed ODC items should be consistently billed regardless of client and contract type.3. Items when incurred for the same purpose, in like circumstance, should not be included in any indirect cost pool or in the overhead rate.

4. Items such as special tooling, will be reimbursed at actual cost with supporting documentation (invoice).5. Items listed above that would be considered "tools of the trade" are not reimbursable as other direct cost6. Travel related costs should be pre-approved by the contracting agency and shall not exceed current State Department of PersonnelAdministration rules.

Page 5 of 9 ends

January 2020

City Council
20 –
59 7/18/2023

Local Assistance Procedures Manual EXHIBIT 10-H2
Cost Proposal

7. If mileage is claimed, the rate should be properly supported by the consultant's calculation of their actual costs for company vehicles. In addition, the miles claimed
should be supported by mileage logs.8. If a consultant proposes rental costs for a vehicle, the company must demonstrate that this is its standard procedure for all of their contracts and that they do not
own any vehicles that could be used for the same purpose.9. The cost proposal format shall not be amended.All costs must comply with the Federal cost principles.

10. Add additional pages if necessary.11. Subconsultants must provide their own cost proposals.

Page 6 of 9 ends

January 2020

City Council
20 –
60 7/18/2023

Local Assistance Procedures Manual EXHIBIT 10-H2
Cost Proposal
EXHIBIT 10-H2 COST PROPOSAL Page 3 of 3
Certification of Direct Costs:

I, the undersigned, ceify to the best of my knowledge and belief that all direct costs identified on the
cost proposal(s) in this contract are actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

7. Generally Accepted Accounting Principles (GAAP)

8. Terms and conditions of the contract

9. Title 23 United States Code Section 112 - Letting of Contracts

10. 48 Code of Federal Regulations Pa 31 - Contract Cost Principles and Procedures

11. 23 Code of Federal Regulations Pa 172 - Procurement, Management, and Administration of Engineering and Design Related Service

12. 48 Code of Federal Regulations Pa 9904 - Cost Accounting Standards Board (when applicable)
All costs must be applied consistently and fair1y to all contracts. All documentation of compliance must
be retained in the project files and be in compliance with applicable federal and state requirements.

Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement.

Prime Consultant or Subconsultant Certifying:

Name:_______________ Title*: _______________
Signature: ______________ Date of Ceification (mm/dd/yyyy):

Email: _______________ Phone Number: ___________ _
Address:_________________________________
* An individual executive or financial officer of the consultant's or subconsultant's organization at
a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

List services the consultant is providing under the proposed contract:

Page 7 of 9 ends

January 2020

City Council
20 –
61 7/18/2023

Local Assistance Procedures Manual EXHBIT 10-H3
Cost Proposal
EXHIBIT 10-HJ COST PROPOSAL Page 1 of2

COST PER UNIT OFWORK CONTRACTS
(GEOTECHNICAL AND MATERIAL TESTING)
Note: Mark-ups are Not Allowed □ Prime Consultant □ Subconsultant □ 2nd Tier Subconsultant✔ ✔ ✔ Consultant ___________________
---------Project No. _ Contract No.
_________
Date - - - - - --
Unit/Item of Work:
(Example: Log of Test Boring for Soils Report, or ADL Testing for Hazardous Waste Material
Study} Include as many Items as necessary.

DIRECT LABOR
Professional{Classification)*
Hours Billing Hourly Rate{$) Total{$)
Sub-professional/Technical**
EQUIPMENT 1{with Operator)
EQUIPMENT 2 {with Operator)
Consultant's Other Direct Costs (ODC)- Itemize:

Description of Item Quantity Unit Unit Cost Total
Mileage Costs 2
2 3
1 $ 10.00
$ 20.00
$ 30.00
$ 20.00
Equipment Rental and Supplies
Permit Fees
$ 40.00
$ 90.00
$ 0.00Plan Sheets
Test $ 0.00
Subconsultant 1:

Subconsultant 2:

Subconsultant 3:

Subconsultant 4:
$ 100.00
$ 200.00
$ 300.00
$ 500.00
Subconsultant 5:

Nole: Attach addtllonal pages if necessa.

TOTAL COST PER UNIT OF WORK
NOTES:

1. Key personnelmust be marked with an asterisk (*) and employees that are subject to prevailing wage requirements
must be marked with two asterisks (). All costs must comply with the Federal cost principles. Subconsultants will
provide their own cost proposals.The cost proposalformat shall not be amended.

2. Hourly billing rates should include prevailing wage rates and be consistent with publicly advertised rates charged to
all clients (Commercial, Private or Public).3. Mobilization/De-mobilization is based on site location and number and frequency of tests/items.

4. ODC items shall be based on actual costs and supported by historical data and other documentation.

5. ODC items that would be considered"tools of the trade' are not reimbursable.6. Billing Hourly Rates must be actual, allowable, and reasonable.

Page 8 of 9 ends

January 2020

City Council
20 –
62 7/18/2023

Local Assistance Procedures Manual EXHBIT 10-H3
Cost Proposal
EXHIBIT 10-H3 COST PROPOSAL Page2of2
Certification of Direct Costs:

I, the undersigned, ceify to the best of my knowledge and belief that all direct costs identified on the
cost proposal{s) in this contract are actual, reasonable, allowable, and allocable to the contract in accordance with the contract terms and the following requirements:

13. Generally Accepted Accounting Principles{GAAP)

14. Terms and conditions of the contract

15. Title 23 United States Code Section 112 - Letting of Contracts

16. 48 Code of Federal Regulations Pa 31 - Contract Cost Principles and Procedures

17. 23 Code of Federal Regulations Pa 172 - Procurement, Management, and Administration of Engineering and Design Related Service

18. 48 Code of Federal Regulation Pa 9904 - Cost Accounting Standards Board {when applicable)
All costs must be applied consistently and fair1y to all contracts. All documentation of compliance must
be retained in the project files and be in compliance with applicable federal and state requirements.

Costs that are noncompliant with the federal and state requirements are not eligible for reimbursement.

Prime Consultant or Subconsultant Certifying:

Name:_______________ Title*: _______________
Signature: ______________ Date of Ceification{mm/dd/yyyy _ : _ _ _ _ Email: _______________ Phone Number :_ _ _ _ _ _ _ _ __ _ _ Address:_________________________________
* An individual executive or financial officer of the consultant's or subconsultant's organization at
a level no lower than a Vice President or a Chief Financial Officer, or equivalent, who has authority to represent the financial information utilized to establish the cost proposal for the contract.

List services the consultant is providinq under the proposed contract:

Page 9 of 9 ends

Janua 2020

City Council
20 –
63 7/18/2023

Local Assistance Procedures Manual Exhibit 9-A
DBE Implementation Agreement for Local Agencies
Exhibit 9-A: DBE Implementation Agreement for Local Agencies

CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS)

DISADVANTAGED BUSINESS ENTERPRISE (DBE) IMPLEMENTATION AGREEMENT For the City/County of _S_a_n_t_a_A_n_a__________________, hereinafter referred to as “SUB-RECIPIENT.” I. Definition of Terms
The terms used in this agreement have the meanings defined in 49 CFR 26.5.

II. Objective/Policy Statement (49 CFR 26.1 and 26.23)
SUB-RECIPIENT intends to receive federal financial assistance from the U. S. Department of Transportation (DOT) through the California Department of Transportation (Caltrans), and as a condition of receiving this assistance, SUB-RECIPIENT will sign the California Department of Transportation Disadvantaged Business Enterprise Implementation Agreement (hereinafter referred to as Agreement). SUB-RECIPIENT agrees to implement the State of California, Department of Transportation Disadvantaged Business Enterprise (DBE) Program Plan (hereinafter referred to as the DBE Program Plan) as it pertains to Local Agencies. The DBE Program Plan is based on U.S. Department of Transportation (DOT), 49 CFR 26 requirements.

It is the policy of SUB-RECIPIENT to ensure that DBEs, as defined in 49 CFR 26, have an equal opportunity to receive and participate in DOT-assisted contracts. It is also SUB- RECIPIENT’s policy:
•
•
To ensure nondiscrimination in the award and administration of DOT-assisted contracts.

To create a level playing field on which DBE’s can compete fairly for DOT-assisted contracts.
•
•
To ensure that the DBE participation percentage is narrowly tailored, in accordance with applicable law.

To ensure that only firms that fully meet 49 CFR 26 eligibility standards are permitted to participate as DBEs.
•
•
To help remove barriers to the participation of DBEs in Federal-aid contracts.

To assist the development of firms that can compete successfully in the market place outside the DBE Program.

III. Nondiscrimination (49 CFR 26.7)
SUB-RECIPIENT will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR 26 on the basis of race, color, sex, or national origin. In administering the Local Agency components of the DBE Program Plan, SUB- RECIPIENT will not, directly, or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE Program Plan with respect to individuals of a particular race, color, sex, or national origin.

Page 1 of 8 ends

September 2020

City Council
20 –
64 7/18/2023

Local Assistance Procedures Manual Exhibit 9-A
DBE Implementation Agreement for Local Agencies
IV. Annual DBE Submittal Form (49 CFR 26.21)
SUB-RECIPIENT will provide to the Caltrans District Local Assistance Engineer (DLAE) a completed Local Agency DBE Annual Submittal Form (Exhibit 9-B), by June 30 of each year for the following Federal Fiscal Year (FFY). This form must include the name, phone number, email address of the designated Disadvantaged Business Enterprise Liaison Officer (DBELO), and the choice of Prompt Pay Provision to be used by SUB-RECIPIENT for the following FFY.

V. Race-Neutral Means of Meeting Caltrans Overall Statewide Annual DBE Goal (49 CFR

26.51(a))
Caltrans expects SUB-RECIPIENT to meet the maximum feasible portion of Caltrans Overall Statewide Annual DBE Goal through race-neutral means of facilitating DBE participation. Race- neutral DBE participation includes when a DBE wins a prime contract through customary competitive procurement procedures, is awarded a subcontract on a prime contract that does not carry a DBE goal, or even if there is a DBE goal, wins a subcontract from a prime contractor that did not consider its DBE status in making the award (e.g., a prime contractor that uses a strict low-bid system to award subcontracts). Race-neutral means include, but are not limited to, the following:

1. Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate the participation of DBE and other small businesses (e.g., unbundling large contracts to make them more accessible to small businesses, requiring or encouraging prime contractors to subcontract portions of work that they might otherwise perform with their own forces);

2. Providing assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs and other small businesses obtain bonding and financing);

3. Providing technical assistance and other services;

4. Carrying out information and communication programs on contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs and other small businesses on SUB-RECIPIENT mailing lists of bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors; provision of information in languages other than English, where appropriate);

5. Implementing a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses;

6. Providing services to help DBEs and other small businesses improve long-term development, increase opportunities to participate in a variety of types of work, handle increasingly significant projects, and achieve eventual self-sufficiency;

7. Establishing a program to assist new, start-up firms, particularly in fields in which DBE participation has historically been low;

8. Ensuring distribution of your DBE directory through print and electronic means to the widest feasible universe of potential prime contractors; and

Page 2 of 8 ends

Santa Ana City CouncilJuly 18, 2023

Santa Ana City Council
July 18, 2023