Agenda — Santa Maria City Council, March 19, 2024 (part 2 of 5)

3. Contractor’s Obligations.

3.1 Minimum Amount of Service. Contractor shall devote sufficient time to perform services under this agreement efficiently and effectively. Contractor may represent, perform services for and be employed by additional individuals or entities, in Contractor’s sole discretion, as long as the performance of these extra- contractual services does not interfere with or present a conflict with City's business.

3.2 Tools and Equipment. Except as otherwise stated in this Agreement, Contractor will supply all tools and equipment necessary to perform this Agreement.

3.3 Status. Contractor (including its employees) is an independent contractor. No employer/employee relationship exists between Contractor and the City.

Contractor's assigned personnel shall not be entitled to any benefits payable to employees of the City. The City is not required to make any deductions or withholdings from the compensation payable to Contractor under this agreement. Consultant (as a business entity, including its employees) is a “design professional” as defined by California Civil Code section 2782.8(c)(3). [Include highlighted text if Consultant is a “design professional.”

3.4 Indemnification. To the fullest extent permitted by law, the Consultant shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limita tion all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including but not limited to reasonable attorneys’ fees, court costs and costs of alternative dispute resolution) regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of the Consultant (including its employees). The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of this Section are not limited by the provisions of the Section relating to insurance.

4. Miscellaneous

4.1 Notices. All communication relating to the day -to-day activities of this Agreement shall be exchanged between a designated representative of the CITY and a representative of CONTRACTOR, listed below . All notices shall be addressed as follows unless a written change is filed with the City:

To City: To Contractor:

Mark Mueller Heather Deutsch
Principal Civil Engineer Executive Director
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City of Santa Maria, Public Works MOVE Santa Barbara County 110 S. Pine Street P.O. Box 92047
Santa Maria, CA 93458 Santa Barbara, CA 93190

If the designated Representative or address of either party changes during the term of this agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.2 Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this agreement.

4.3 Integration. This agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this agreement must be in writing and signed by the appropriate representatives of the parties.

4.4 Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.5 Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Santa Barbara, State of California.

4.6 Warranty of authority. Each person signing this agreement on behalf of a party warrants that he or she has authority to do so.

4.7 No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.

4.8 Severability. The provisions of this agreement are severable. If any part of this agreement is held invalid by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.9 Submittals. In addition to any other submittals required by this agreement, Contractor shall submit copies of its current business license and current certificate of workers compensation coverage to the City before beginning work on this project.

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4.10 Prevailing Wage. Prevailing Wage. If applicable, Consultant and all subconsultants are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code. The Director's determination is on file and open to inspection at www.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined and specified are referred to and made a part hereof as though fully set forth herein.

I
N WITNESS WHEREOF, this agreement is executed by the parties on the date first written above.

MOVE Santa Barbara County
___
________________________
Heather Deutsch
Executive Director
CITY OF SANTA MARIA, a political
subdivision of the State of California
Brett Fulgoni
Public Works Director
A
TTEST:

Alexandra Valadez
Assistant City Clerk
APPROVED AS TO FORM:
_______________________________
R
isk Manager
_______________________________
City Attorney
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EXHIBIT “A”

SCOPE OF SERVICES
Consultant hereby agrees to provide to the City of Santa Maria, as the scope of services under this Agreement, the services described on City’s Request for Proposal for Pedestrian and Bicycle Safety Professional Services dated January 22, 2024 (Exhibit “D”) which outlines the scope of services and work under this contract, and the approved Consultant’s Proposal dated January 30, 2024. (Exhibit “E”).

The City seeks to enter into an agreement with a consultant to help complete the ter ms of the awarded OTS Grant Identified as Attachment C in Section 4 of the Request for Proposals. The consultant would purchase 125 helmets for distribution. The helmets are included in the not-to-exceed amount for this contract.

The agreement would have the option to extend the program for two additional years on a yearly basis with a reduced budget from Measure A dollars to support pedestrian/bicycle education events and trainings.

During the course of this Agreement, the City will identify tasks and ask the Consultant to prepare a task proposal which, at a minimum, will include: scope of work, “not-to-exceed” cost, and schedule. Additional tasks will be assigned as new exhibits to this contract, with each new task being sequentially as Exhibit A1, A2, A3, etc.

No Task may be assigned under this contract unless that project has been separately budgeted for and approved by the City Council. The City is under no obligation to expend any funds under this Contract unless it determines it is in the City’s best interest to do so.

The City is under no obligation to utilize the prequalification list for any particular project and may instead seek services for that project pursuant to the City’s purchasing guidelines. When work is performed pursuant to the prequalification list established by this RFP and this Agreement, work will be performed on a rotating basis among the pre- qualified consultants, based on consultants’ availability.

A Notice to Proceed will be issued by the City for each task under this Agreement. In case of any conflicting terms it is the express intent of the parties hereto that the order of precedence and controlling language shall be as follows:
1) t
his Agreement;
2) the City’s Request for Proposal (Exhibit “D”);
3) the Consultant’s proposal (Exhibit “E”).

S
elected firms will be expected to perform the following tasks either within their own forces or by the use of sub-consultants identified in consultant’s proposal.

Tasks may include, but are not limited to the following:
• Teaching students how to ride a bicycle for the first time. • T eaching students riding skills to enhance safe behaviors such as stopping and stop signs, yielding, signaling.
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• Creating program sustainability by training teachers to teach the program including coordinating volunteers and managing logistics.
• Providing low-cost helmets for all students.
• Providing low-cost bicycles for students in need.

Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving pedestrians and bicyclists. The funded strategies may include classroom education, bicycle rodeos, community events, presentations, and works hops.

These countermeasures should be conducted in communities with high numbers of pedestrian and/or bicycle related crashes including underserved communities, older adults, and school-aged children. Coordinated efforts such as Safe Routes to School initi atives, Safe System Approach, and working with community based organizations are highly encouraged to prevent fatalities and injuries of vulnerable non-motorized road users.

The consultant selected will help the City of Santa Maria meet all goals and objectives identified in the FY 23/24 OTS Grant awarded to the Public Works Department. The grant and budget are attached to this RFP for reference. The tasks and responsibilities of the selected consultant will be reduced to reflect the above bullet points following the first year of this contract.

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EXHIBIT “B”

PAYMENT

I. Progress Authorization

W
ritten authorization to proceed from the City authorizes the Contractor to generate the not-to-ex
ceed cost of $151,000 for the first year of the contract, with subsequent extension costs not to exceed $31,000 per year unless otherwise negotiated.

II. Invoice procedure.

A. Payment shall be at the conclusion of the Assigned Task based on the billable charges.

B. The Contractor shall present the bill for charges by the second day of the month.

C. The Contractor's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts

Under no circumstance shall the total of all payments to the Contractor exceed ninety percent (90%) of the maximum “ not-to-exceed” cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A" or any Assigned Task.

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EXHIBIT “C”
I

NSURANCE REQUIREMENTS
C
onsultant 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, his/her agents, representatives, or employees. 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 higher limits maintained by the Consultant.

A. Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. Insurance Services Office Com mercial General Liability coverage (occurrence form CG 0001), including products and c ompleted operations, property dam age, bodily injury and personal & advertising injury.

2. Insurance Services Office Busines s Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).

3. Workers' Compensation ins urance as required by the State of and Employer's Liability Insurance. and Employer's Liability Insurance.

B. Minimum Limits of Insurance
Consultant shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate lim it is used, either the general aggregate limit shall apply separately to this pr oject/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

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

3. Workers’ Compensation: Statutory limits.
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4. Employer's Liability - $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

C. 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.

D. Other Insurance Provisions

The liability policies are to contain, or be endorsed to contain, the following provisions:

1. 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 or an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 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 are used).

2. For any claims related to this project, the Consultant's insurance coverage shall be primary insurance 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. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City
representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested.

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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.

5. If any of the required policies provide claims-made coverage:
a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
c. 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 work.

E. Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage

Consultant shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. 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 effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances

The 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.

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EXHIBIT “D”

CITY OF SANTA MARIA REQUEST FOR PROPOSALS

City of Santa Maria

REQUEST FOR PROPOSALS

Pedestrian and Bicycle Safety Professional
Services

ISSUING OFFICE: City of Santa Maria
Public Works Department
110 S. Pine Street, Ste. 221
Santa Maria, CA 93458

SUBMITTAL: One (1) copy must be received on or before 4:00 p.m., Monday January 29, 2024, with one (1) copy the consultant's schedule of fees submitted in a separate sealed envelope.

PROPOSALS RECEIVED AFTER THE TIME AND DATE STATED ABOVE SHALL BE DEEMED UNRESPONSIVE AND RETURNED UNOPENED TO THE PROPOSER.

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Table of Contents

REQUEST FOR PROPOSALS ..................................................................................................... 1 SECTION 1 - INSTRUCTIONS AND CONDITIONS ................................................................ 2

1.1 Project Description ......................................................................................... 3

1.2 Information ...................................................................................................... 4

1.3 Important Notice ............................................................................................. 4

1.4 Definitions ....................................................................................................... 5

1.5 Contracting Agency ........................................................................................ 5

1.6 Legal Responsibilities .................................................................................... 5

1.7 Business Tax Certificate ................................................................................ 6

1.8 Withdrawal of Proposals ................................................................................ 6

1.9 Rejection of Proposals ................................................................................... 6

1.10 Evaluation ........................................................................................................ 6

1.11 Pricing Guidelines .......................................................................................... 7

1.12 Proprietary Information .................................................................................. 7

1.13 Tentative Selection Schedule ........................................................................ 8 SECTION 2 – PROJECT OVERVIEW ........................................................................................ 9

2.1 Introduction ................................................................................................... 10

2.2 Term of Contract ........................................................................................... 10

2.3 Scope of Work ............................................................................................... 10

2.4 Selection and Evaluation Factors ................................................................ 11

2.5 Inquiries ......................................................................................................... 12

2.6 Contract Incorporation ................................................................................. 12

2.7 Negotiations .................................................................................................. 12

2.8 Proposal Format ........................................................................................... 13 SECTION 3 - AGREEMENTS ................................................................................................... 14 SECTION 4 – ATTACHMENTS ................................................................................................ 25 City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

PUBLIC NOTICE

REQUEST FOR PROPOSALS

Request for Proposals (RFPs) must be received by the Public Works Department, Mark Mueller, PE via email [email protected] no later than 4:00 p.m., January 29th, 2024.

Pedestrian and Bicycle Safety Professional Services

No proposer shall discriminate in employment practices on the basis of race, color, national origin, ancestry, disability, gender, or religion.

No qualified handicapped person shall, on the basis of handicap, be excluded from participating in, be denied the benefits of, or otherwise be subjected to discrimination in any matter leading to the award of contract.

The right is reserved by the City of Santa Maria to reject any or all proposals, to waive any irregularities or informalities not affected by law, to evaluate the proposals submitted, and to award the contract according to the proposal which best serves the interests of the City.

Dated this 15
th day of January 2024 at Santa Maria, California.

By: Mark Mueller, PE, Principal Civil Engineer

City of Santa Maria, California

Publication Date: January 15th, 2023

SECTION 1 - INSTRUCTIONS AND

CONDITIONS
City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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1.1 Project Description

The City of Santa Maria (“City”) is seeking proposals from qualified firms or individuals to provide Pedestrian and Bicycle Safety Services. The City is a charter city located in the County of Santa Barbara. The scope of bicycle and pedestrian safety work shall include but not be limited to teaching students how to ride a bicycle for the first time, teaching students riding skills to enhance safe behaviors such as stopping and stop signs, yielding, signaling, c reating program sustainability by training teachers to teach the program including coordinating volunteers and managing logistics, providing low-cost helmets for all students and providing low -cost bicycles for students in need. T his RFP is subject to the requirements of Page G-10 and G-11 of the Purchasing Guidelines for the City of Santa Maria.

The City desires to obtain the services of outside firms or individuals to help the City perform Pedestrian and Bicycle Safety Professional Services.

The selected organization will provide the full range of services including:

• Teaching students how to ride a bicycle for the first time. • Teaching students riding skills to enhance safe behaviors such as stopping and stop signs, yielding, signaling.
• Creating program sustainability by training teachers to teach the program including coordinating volunteers and managing logistics. • Providing low-cost helmets for all students.
• Providing low-cost bicycles for students in need.

Terms of Work:

A. The term of the agreement will be for an initial one (1) year period and will include an option for two (2) annual extensions which will occur automatically unless terminated in accordance with the contract. The total term of this Agreement will not exceed three (3) years.

B. The aggregate not-to-exceed fee for all tasks provided during the initial one- year term of the Agreement shall be $151,000. The tasks and responsibilities of the selected consultant will be reduced to reflect the above bullet points following the first year of this contract. Not-to-exceed amounts for the subsequent extensions shall be $31,000 per year.

City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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C. All drawings, reports, data, computer files, specifications, calculations, and studies prepared by the Consultant shall become the property of the City, with all rights of ownership, including copyrights and reproduction of the same.

1.2 Information

One (1) copy must be received on or before 4:00 p.m., Monday, January 29, 2024 with one (1) copy the consultant's schedule of fees submitted in a separate sealed envelope. If a consultant is concerned about file size limits, a link to cloud storage (Box.com, Dropbox, etc.) in the submittal email may be used.

For hand delivery, or UPS/FedEx delivery, please use the following address:

City of Santa Maria
Public Works Department – Engineering Division
110 S. Pine Street, Ste. 221
Santa Maria, CA 93458

For Mailing using the United States Postal Service, please use the following address:

City of Santa Maria
Public Works Department – Engineering Division
110 S. Pine Street, Ste. 101
Santa Maria, CA 93458

Unless otherwise directed, all communications regarding this Request for Qualifications should be directed to Mark Mueller, PE, Principal Civil Engineer, via email at [email protected]
.

Any revisions to the Request for Proposal will be issued and distributed as Addenda. Proposers are specifically directed not to contact any other City personnel for meetings, conferences, or technical discussions related to this Request for Proposal. Failure to adhere to this policy may be grounds for rejection of proposal.

1.3 Important Notice

The City of Santa Maria will not be responsible for oral interpretations given by any City employee, representative, or others. Proposers are cautioned that any statements made that materially change any portion of the proposal documents shall not be relied upon unless subsequently ratified by a formal written amendment to the proposal document. The issuance of a written addendum is the only official method whereby interpretation, clarification, or additional information can be given. If any addenda are issued, the City will attempt to notify all prospective consultants. However, it will be the responsibility of each prospective City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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consultant, prior to submitting its proposal, to contact Mark Mueller, P.E., Principal Civil Engineer ([email protected]) with the City of Santa Maria, 110 S. Pine Street, Suite 101, Santa Maria, CA 93458, (805) 925-0951 x 1667 , to determine if addenda were issued, and to make such addenda a part of their proposal.

1.4 Definitions

1. "Agency" refers to the City of Santa Maria, an Agency established under the laws of the State of California.

2. "Days" refers to working days of the City of Santa Maria when used in context with Agency's bid protest procedures.

3. The terms “file” or “submit” refer to the date of receipt by Agency.

4. "Interested party" includes all bidders on the contract or procurement. The term may also include a subconsultant or vendor at any tier who shows that it has a substantial economic interest in a provision of the Request for Proposals (RFP), or of the interpretation of such a provision.

5. "Local" as used herein refers to the County of Santa Barbara and the State of California. When used in conjunction with the phrase "laws and regulations" it is construed to mean only those laws or regulations associated with the provision of public mass transportation and the use of public funds. It is not construed to include the purchasing and/or protest procedures used by either of the aforementioned entities.

6. “Request for Proposal" as used herein, also includes the term "offer" or “RFP” as used in the context of negotiated procurements.

7. "Administrator" or “Manager” as used herein refers to the project manager of the City of Santa Maria.

1.5 Contracting Agency

The City of Santa Maria will administer the contract resulting from this Request for Qualification.

1.6 Legal Responsibilities

All proposals must be submitted, filed, made, and executed in accordance with State of California and Federal laws relating to proposals for contracts of this nature, whether the same or expressly referred to herein or not.

City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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1.7 Business Tax Certificate

Possession of a City of Santa Maria Business Tax Certificate is not required to submit a proposal in response to this invitation. However, Contractor shall be required to possess, at its own expense, a valid and current City of Santa Maria Business Tax Certificate prior to commencing work. Fee is based on gross receipts for all business transactions in the City of Santa Maria. For additional information, contact the City of Santa Maria at (805) 925-0951 ext. 2422.

1.8 Withdrawal of Proposals

Any proposal may be withdrawn at any time prior to the time fixed in the public notice for the receipt of proposals only by written request filed with the City of Santa Maria Project Manager. The request shall be executed by the offeror or his duly authorized representative. The withdrawal of a proposal does not prejudice the right of the offeror to file a new proposal. No proposal may be withdrawn after the time fixed in the public notice for the receipt of proposals.

1.9 Rejection of Proposals

Failure to meet the requirements of the Request for Proposals (RFP) will be cause for rejection of the proposal. The City may reject the proposal if it is incomplete, contains irregularities of any kind, or is offered conditionally. The City reserves the right to reject any and all proposals without cause.

The proposal is to be prepared in such a way as to provide a straightforward, concise delineation of the information requested. Proposals which contain false or misleading statements, or which do not support an attribute or condition claimed by the proposer, may be cause for rejection of the proposal. If, in the sole opinion of the City, such information was intended to mislead the City in its evaluation of the proposal, it will be cause for rejection of the proposal.

1.10 Evaluation

Evaluation and selection of statement of qualifications will be based on the qualifications and evaluation criteria outlined in the RF P request. Brochures or other promotional presentations beyond that which is deemed sufficient to submit a complete and effective proposal are not desired. Elaborate artwork, expensive paper or binders, and expensive visuals are not necessary and will not affect the evaluation process.

The City of Santa Maria reserves the right to make the selection of a proposer based on any or all factors of value, whether quantitatively identifiable or not, including, but not limited to, the anticipate initiative and ability of the proposer to perform the services set forth herein.

The City of Santa Maria reserves the right to reject any or all statement of qualifications , to waive any requirements, both the City's and those proposed by the proposer; to waive City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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any irregularities or informalities in any proposal or the RFP process when it is in the best interest of the City to do so; to negotiate for the modification of any proposal with mutual consent of the proposer; to re- advertise for RFP proposals, if desired; to sit and act as sole judge of the merit and qualifications of the service offered; and to evaluate in its absolute discretion, the proposal of each proposer, so as to select the proposer which best serves the requirements of the City, thus providing that the best interest of the City will be served. The p roposer's past performance, and the City's assurance that each proposer will provide service as proposed, will be taken into consideration when statement of qualifications are being evaluated.

The City may make such investigation as it deems necessary to determine the ability of a proposer to furnish the required services, and the proposer will furnish to the City all such information and data for this purpose as the City may request. The City reserves the right to reject any proposal if the evidence submitted by, or investigation of, such proposer fails to satisfy the City that such proposer is properly qualified to carry out the obligations of a contract and to deliver the services contemplated herein or the service of any consultant who has previously failed to perform properly, or complete on time, contracts of a similar nature. Any material misrepresentation or material falsification of information provided to the City in the proposer's submission, or at any point in the evaluation process, including any interview conducted, is grounds for rejection of the proposal. In the event that the misrepresentation or falsification is not discovered until after any agreement is awarded, the agreement may be terminated at that time. A determination as to whether a misrepresentation or falsification of the submission is material shall be made solely in the exercise of the City's sole discretion. The City expressly reserves the right to reject the proposal of any consultant who is in default on the payment of taxes, licenses, or other monies due the City of Santa Maria.

The City reserves the right to conduct a background inquiry of each proposer which may include the collection of appropriate criminal history information, contractual and business associations and practices, employment histories, and reputation in the busi ness community. By submitting a statement of qualifications to the City, the proposer consents to such an inquiry and agrees to make available to the City such books and records as the City deems necessary to conduct the inquiry.

1.11 Pricing Guidelines

Proposers shall provide proposed fees and cost information as a part of this R FP. Fee schedules submitted in response to this RFP shall identify hourly rates and be no higher than the proposer's standard commercial rates for same services. Fees submitted may be used as a basis of negotiation with the successful consultant.

1.12 Proprietary Information

The proposals received shall become the property of the City of Santa Maria and are subject to public disclosure. Proposers are to indicate any restrictions on the use of data contained in their responses. Those parts of a proposal which are defined by the bidder City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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as business or trade secrets, as that term is defined in California Government Code, Section 6254.7, and are reasonably marked as "Trade Secrets", "Confidential" or "Proprietary" shall only be disclosed to the public if such disclosure is required or permitted under the California Public Records Act or otherwise by law. Proposers who indiscriminately and without justification identify most or all, of their proposal as exempt from disclosure may be deemed non-responsive.

1.13 Tentative Selection Schedule

Issuance of RFP January 15, 2023

Question Submission deadline 4:00 p.m., January 22, 2023

Submission deadline 4:00 p.m., January 29, 2023

Council Award of contract February 20, 2024 (tentative)

SECTION 2 – PROJECT OVERVIEW
City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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PROJECT OVERVIEW

2.1 Introduction

The City of Santa Maria, Public Works Department, invites perspective consultants to submit Proposals to perform Pedestrian and Bicycle Safety Professional Services.

The selected organization will provide the full range of services including:

These countermeasures should be conducted in communities with high numbers of pedestrian and/or bicycle related crashes including underserved communities, older adults, and school -aged children. Coordinated efforts such as Safe Routes to School initiatives, Safe System Approach, and working with community based organizations are highly encouraged to prevent fatalities and injuries of vulnerable non- motorized road users.

Preliminary descriptions of services for each discipline is attached and outlined in Section 4, Attached – Scope of Work. Proposers are encouraged to cover all task s and preference will be given to firms that are able to provide as many services as possible.

If used, subconsultant qualifications should be listed and the Public Works Department would like to see subconsultant key staff individual resumes, their placement on the organization chart, and subconsultant firm project experience.

2.2 Term of Contract

The term of the agreement will be for an initial one (1) year period and will include an option for two (2) annual extensions which will occur automatically unless terminated in accordance with the contract. The total term of this Agreement will not exceed three (3) years.

2.3 Scope of Work

See Section 4, Attachment A – Scope of Work.

City of Santa Maria
Pedestrian and Bicycle Safety Professional Services

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2.4 Selection and Evaluation Factors

Successful consultants shall be selected by the City of Santa Maria on a rational basis. Evaluation factors outlined below shall be applied to all eligible responsible and responsive proposers in comparing proposals.

A proposer may be selected without discussion after Statement of Qualifications are received. Therefore, proposals should be submitted on the most favorable terms.

A. Evaluation Criteria. An evaluation committee of City staff personnel will review and evaluate all proposals received by the due date based on the following criteria:

a. Ability to Design an Approach and Work Plan to Meet the Project Requirements. An assessment of the overall quality of the proposal.

Qualities and indicators that will receive consideration include the proposer’s performance in converting the Scope of Work into a work plan; the detail and clarity of the discussion as to the proposer’s approach to undertaking the project; the proposer’s performance in identifying any special problems or concerns which may be associated with the project and preliminary ideas about how these obstacles should be addressed; the inclusion of any unique approaches which are designed to save time and money or increase the benefits or effectiveness of the proposed work; the demonstrated ability to work with governmental bodies; and a full understanding of applicable laws or regulations that relate to the project.

b. Ability of the Proposer to Carry Out and Manage the Proposed Project . An assessment of the past experience of the organization in general. Qualities and indicators that will receive consideration include the number and types of projects the organization or its employees have completed; the variety of projects completed and a demonstration of the organization’s ability to undertake this project; the general level of experience in the areas of supervision, observing and monitoring projects; the organization’s ability to realize timetables and quality control objectives; and the demonstrated general ability to bring about a successful completion of the projects under the proposer’s direction.

c. Staff: An assessment of the perceived ability of each organization to devote the necessary human resources and management attention to the project.

Do the qualifications of key personnel to be assigned to the project coincide with project’s requirements? Do assi gned personnel and subconsultant personnel have requisite education, experience, and professional qualifications and licenses?

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d. Familiarity with Locality: Does the firm have familiarity with the City required to successfully complete the project? How close are the firm’s permanent offices to the Santa Maria Valley?

e. Willingness to Comply with the Proposed Agreement Terms. A sample agreement is attached as Section 3. Proposals will be rated based on any exceptions taken to the proposed agreement.

f. Reputation: Are the firm’s references from past clients and associates favorable; and, does the firm show financial and operational stability?

B. Procedures
a. At the completion of the review process, proposers will be ranked based on the Evaluation Criteria described in section VIII.A above. The City will select the highest ranked firm.

b. Upon completion of the rankings, fee negotiations will commence with the highest ranked firm. If the fees are mutually agreed upon after negotiations, an agreement will be placed on a City Council agenda for approval consideration. If fee negotiations are unsuccessful with the highest ranked firm, that firm will be excused and the fee schedule of the next highest ranked firm will be negotiated.

c. It is anticipated that any award of an agreement for services will be made by the City Council within 90 days of proposal submission.

2.5 I nquiries

Inquiries must be submitted in writing. City shall issue any necessary clarification in writing to all proposers. Proposers should not rely on verbal discussion in lieu of written communication. Failure to adhere to this requirement could render the proposal non- responsive. All inquiries shall be directed to Mark Mueller PE, Principal Civil Engineer, City of Santa Maria, 110 S. Pine Street, Suite 101, Santa Maria, CA 93458, via email at [email protected].

2.6 Contract Incorporation

Proposer should be aware that the City of Santa Maria’s attached “agreement” shall become the actual contract document. The terms and conditions defined in Section 3 are to be used as a basis for a contemplated contract. Any modifications to this recommended sample contract will require prior negotiations and approval of the City. Failure of a proposer to accept this obligation may result in the rejections of its proposal or cancellation of any award.

2.7 Negotiations

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The City of Santa Maria reserves the right to negotiate all elements which comprise the proposal to ensure the best possible consideration for all concerned.

2.8 Proposal Format

Proposals must follow the format outlined in Section 4, Attachment B – Proposal Requirements and all requested information must be supplied. Failure to submit a complete Proposal in the required format shall be considered non-responsive.

SECTION 3 - AGREEMENTS

AGREEMENT FOR PROFESSIONAL SERVICES

Pedestrian and Bicycle Safety Professional Services

This Agreement is made on DATE, by and between, a NAME California Corporation (“Contractor”) and the City of Santa Maria, a California Municipal Corporation and charter city (“City”), in Santa Maria, California, based on the following recitals:

WHEREAS, City has determined it is in the public interest to proceed with the work hereinafter described as "Project"; and

WHEREAS, City does not have available employees to perform the services for the Project; and

WHEREAS, City has requested the Contractor to provide manpower to complete the Project; and

WHEREAS, Contractor is registered or licensed in California to perform desired services for the Project.

NOW, THEREFORE, IT IS AGREED:

1. Recitals true. The above recitals are true.

2. General.

2.1 Term and Termination. The term of this contract is until 11:59 p.m. on January 31, 20 25, beginning on the date first written above. This contract may be extended by mutual consent of the parties, consistent with the terms identified in the Request for Proposals. This contract may be terminated for breach of its terms or conditions, or because of discovery of any act which violates local, state or federal law. Termination is effective 14 days after deposit of notice as specified in this Agreement.

2.2 Services to be Performed. Contractor shall determine the method, details and means of providing Pedestrian and Bicycle Safety Professional Services. More specifically, Contractor agrees to perform the specific services listed in Exhibit “A.”

2.3 City’s Duties. City’s duties under this Agreement are to cooperate with Contractor in the performance of the contract and timely pay invoices.

2.4 Payment. Payment terms under this Agreement are listed in Exhibit “B.”

2.5 Insurance. Contractor shall provide insurance as listed in Exhibit “C.” City of Santa Maria
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2.6 Exhibits. Exhibits “A,” “B,” and “C” are attached and incorporated.

3. Contractor’s Obligations.

3.2 Tools and Equipment. Except as otherwise stated in this Agreement, Contractor will supply all tools and equipment necessary to perform this Agreement.

3.3 Status. Contractor (including its employees) is an independent contractor. No employer/employee relationship exists between Contractor and the City.

4. Miscellaneous

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To City: To Contractor:

4.2 Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this agreement.

4.4 Interpretation. This agreement shall be interpreted in accordance with the laws of the State of California.

4.5 Jurisdiction. Jurisdiction and venue of all disputes over the terms of this agreement shall be in the County of Santa Barbara, State of California.

4.6 Warranty of authority. Each person signing this agreement on behalf of a party warrants that he or she has authority to do so.

4.7 No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.

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IN WITNESS WHEREOF, this agreement is executed by the parties on the date first written above.

NAME of COMPANY

___________________________
NAME
TITLE

CITY OF SANTA MARIA, a political
subdivision of the State of California

Brett Fulgoni
Public Works Director

ATTEST:

Sarah Lansburgh
Chief Deputy City Clerk
APPROVED AS TO FORM:

_______________________________
Risk Manager
_______________________________
City Attorney

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EXHIBIT “A”

SCOPE OF SERVICES

Consultant hereby agrees to provide to the City of Santa Maria, as the scope of services under this Agreement, the services described on City’s Request for Proposal for Pedestrian and Bicycle Safety Professional Services dated ______ (Exhibit “D”) which outlines the scope of services and work under this contract, and the approved Consultant’s Proposal dated [insert date] (Exhibit “E”).

The seeks to enter into an agreement with a consultant to help complete the terms of the awarded OTS Grant Identified as Attachment C in Section 4 of the Request for Proposals.

The consultant would purchase 125 helmets for distribution. The helmets are included in the not-to-exceed amount for this contract.

A Notice to Proceed will be issued by the City for each task under this Agreement. In case of any conflicting terms it is the express intent of the parties hereto that the order of precedence and controlling language shall be as follows:
1) this Agreement;
2) the City’s Request for Proposal (Exhibit “D”);
3) the Consultant’s proposal (Exhibit “E”).

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EXHIBIT “B”

PAYMENT

I. Progress Authorization

II. Invoice procedure.

A. Payment shall be at the conclusion of the Assigned Task based on the billable charges.

B. The Contractor shall present the bill for charges by the second day of the month.

C. The Contractor's bill shall be substantiated by appropriate documentation, and include an itemized listing of personnel, subcontractors, and other direct costs incurred.

III. Maximum billable amounts

Under no circumstance shall the total of all payments to the Contractor exceed ninety percent (90%) of the maximum “not-to-exceed” cost, prior to acceptance by the City of all items to be completed as noted within Exhibit "A" or any Assigned Task.

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EXHIBIT “C”

INSURANCE REQUIREMENTS

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, his/her agent s, representatives, or employees. 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 higher limits maintained by the Consultant.

A. Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001), including products and completed operations, property damage, bodily injury and personal & advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any auto (Code 1), or if Consultant has no owned autos, covering hired (Code 8) and non- owned autos (Code 9).

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

4. Errors and Omissions liability insurance appropriate to the Consultant's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

B. Minimum Limits of Insurance

Consultant shall maintain limits no less than:

1. General Liability - $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

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

3. Workers’ Compensation: Statutory limits.

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

5. Errors and Omissions Liability - $1,000,000 per occurrence or claim, $2,000,000 aggregate.

6. Cyber Liability- $2,000,000 per occurrence or claim, $2,000,000 aggregate.

C. 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.

D. Other Insurance Provisions

The liability policies are to contain, or be endorsed to contain, the following provisions:

1. 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 or an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 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 are used).

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3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract to the City. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return-receipt requested.

4. 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.

5. If any of the required policies provide claims-made coverage:
a. The Retroactive Date must be shown, and must be
before the date of the contract or the beginning of
contract work.
b. Insurance must be maintained and evidence of
insurance must be provided for at least five (5) years
after completion of the contract of work.
c. 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 work.

E. Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless otherwise acceptable to the City.

F. Verification of Coverage

However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them.

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The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

G. Special Risks or Circumstances

The 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.

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SECTION 4 – ATTACHMENTS

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ATTACHMENT A – SCOPE OF WORK

Basic services shall be to perform various Pedestrian and Bicycle Safety tasks to educate and reduce the incidence of collisions between pedestrians and bicyclists with motor vehicles.

Selected firms will be expected to perform the following tasks either within their own forces or by the use of sub-consultants identified in consultant’s proposal.

Tasks may include, but are not limited to the following:

• Teaching students how to ride a bicycle for the first time. • Teaching students riding skills to enhance safe behaviors such as stopping and stop signs, yielding, signaling.
• Creating program sustainability by training teachers to teach the program including coordinating volunteers and managing logistics.
• Providing low-cost helmets for all students.
• Providing low-cost bicycles for students in need.

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ATTACHMENT B – PROPOSAL REQUIREMENTS

A. Proposals shall be a maximum of 24 individual pages (i.e. 12 double-sided, 24 single- sided, or a mix thereof for a total of 24 individual pages).

B. All proposals shall include the following minimum information:

a. Cover letter of interest. Please identify the location of the key individuals who will be assigned to work on this agreement.

b. Firm Background. Brief description of your firm’s history, capabilities, and target markets.

c. Management and Team Members . Provide a description of the team/consultant organization, and a work plan that identifies the personnel to be assigned to each task. The organization description should clearly identify who will be the project manager and the day -to- day contact person for the job. Include relevant experience of the team members who will be assigned to the project.

d. Subconsultants. A list of subconsultants to be used, if any, and their expertise as called for in Item 1, above.

e. Scope of Work. A description of methodology, techniques, and procedures for each of the scope of work items with an explanation of how the proposer plans to approach the tasks and the steps that will be taken to complete the task including analytical methods and tools. Proposers must demonstrate that they understand the magnitude and importance of each individual task. If appropriate, tasks should be organized into phases constituting measurable deliverables.

f. Organization Qualifications. Provide an outline of the organization qualifications indicating relevant background experience and capabilities for this work. A list of major projects, both ongoing and planned, to which the organization is committed during the time frame of this project should also be provided. Include the staff resources devoted to those projects and the status of the projects.

g. Project Experience. Describe at least three specific projects that the firm and proposed key personnel have worked on within the past five years, including client contact names, telephone numbers, and email addresses. If your firm has completed similar projects without the involvement of the proposed key personnel, please note this in your proposal.

h. Sample Plans. Provide sample plans completed recently for a public agency (2 sheets maximum, 11”x17” maximum size sheet).

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i. Project Management. Provide a description regarding how work is scheduled, prioritized, and what structures are in place to ensure your firm meets project time lines.

j. References. Provide at least three (3) client references with phone numbers for relevant work. Specify the client, location, consultant firm members and participating individuals and their roles on team (principal, project director, etc.), type of work, implementation results or status, examples of work, and other relevant information as needed.

Your proposal should elaborate on all services your firm offers, even if not specifically asked for in this RFP. If appropriate, identify the number of staff assigned to each of the service areas and summarize their individual qualifications.

C. Fee Schedule

A fee schedule shall be submitted as a part of this RFP in a separate sealed envelope.

Fee schedules submitted in response to this RFP shall identify hourly rates and be no higher than the proposer's standard commercial rates for same services.

Fees submitted may be used as a basis of negotiation with the successful consultant.

Include an hourly rate for each category of employee (i.e., Principal, Technician, etc.) and fees for applicable direct costs (blueprint, reproduction, etc.).

No “mark-up” will be allowed for direct costs.

If applicable, per diem shall be billed at a maximum of the GSA rate and mileage shall be billed at the IRS mileage rate in place at the time of billing.

No “mark-up” will be allowed for per diem or mileage. Sub-consultant services are to be billed at cost plus ten percent (10%) maximum.

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ATTACHMENT C – OTS GRANT DOCUMENTS

11/13/2023 3:06:51 PM Page 1of 17
State of California Office of Traffic SafetyGRANT AGREEMENT GRANT NUMBERPS240421.GRANT TITLEPedestrian and Bicycle Safety Program2.NAME OF AGENCY 3.Grant PeriodSanta MariaFrom:To:10/01/202309/30/20244.AGENCY UNIT TO ADMINISTER GRANTSanta Maria Public Works5.GRANT DESCRIPTIONBest practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving pedestrians and bicyclists. The funded strategies may include classroom education, bicycle rodeos, community events, presentations, and workshops. These countermeasures should be conducted in communities with high numbers of pedestrian and/or bicycle related crashes including underserved communities, older adults, and school-aged children. Coordinated efforts such as Safe Routes to School initiatives, Safe System Approach, and working with community based organizations are highly encouraged to prevent fatalities and injuries of vulnerable non-motorized road users.6.Federal Funds Allocated Under This Agreement Shall Not Exceed:$120,000.007.TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement:Schedule A Problem Statement, Goals and Objectives and Method of ProcedureSchedule B Detailed Budget Estimate and Sub-Budget Estimate (if applicable) Schedule B-1 Budget Narrative and Sub-Budget Narrative (if applicable)Exhibit A Certifications and AssurancesExhibit B* OTS Grant Program ManualExhibit C Grant Electronic Management System (GEMS) Access*Items shown with an asterisk (*), are hereby incorporated by reference and made a part of this agreement as if attached hereto. These documents can be viewed at the OTS home web page under Grants: www.ots.ca.gov.We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the above described Grant terms and conditions.IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.8.Approval SignaturesA.GRANT DIRECTORB.AUTHORIZING OFFICIALNAME:TITLE:EMAIL:PHONE:ADDRESS:Mark MuellerPrincipal Civil [email protected](805) 925-0951 Ext. 1667110 S. Pine Street, Suite 221Santa Maria, CA 93458ADDRESS: Alex PosadaInterim City [email protected](805) 925-0951 Ext. 2200110 South Pine StreetSanta Maria, CA 93458{{_es_signer2_signature}} {{_es_signer2_date}}{{_es_signer4_signature}} {{_es_signer4_date}}(Signature) (Date) (Signature) (Date)C.FISCAL OFFICIALD.AUTHORIZING OFFICIAL OF OFFICE OF TRAFFIC SAFETYADDRESS: Xenia BradfordInterim Director of [email protected](805) 925-0951 Ext. 2215110 South Pine StreetSanta Maria, CA 93458ADDRESS: Barbara [email protected](916) 509-30302208 Kausen Drive, Suite 300Elk Grove, CA 95758{{_es_signer3_signature}} {{_es_signer3_date}}{{_es_signer6_signature}} {{_es_signer6_date}}(Signature) (Date) (Signature) (Date)

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E. ACCOUNTING OFFICER OF OFFICE OF TRAFFIC SAFETY9. SAM INFORMATIONNAME: Carolyn Vu SAM #:REGISTERED ADDRESS: CITY: ZIP+4: KMK4VML3VFF9110 E. Cook Street Santa Maria 93454-5163 ADDRESS: 2208 Kausen Drive, Suite 300Elk Grove, CA 95758 10.PROJECTED EXPENDITURES FUND CFDA ITEM/APPROPRIATION F.Y. CHAPTER STATUTE PROJECTED EXPENDITURES 402PS-24.1 20.600 0521-0890-101 2022 43/22 BA/22 $40,800.00 402PS-24 20.600 0521-0890-101 2023 12/23 BA/23 $79,200.00 AGREEMENT TOTAL $120,000.00 AMOUNT ENCUMBERED BY THIS DOCUMENT I CERTIFY upon my own personal knowledge that the budgeted funds for the current budget year are available for the period and purpose of the expenditure stated above. $120,000.00 PRIOR AMOUNT ENCUMBERED FOR THIS AGREEMENT $ 0.00 OTS DATE SIGNED TOTAL AMOUNT ENCUMBERED TO DATE {{_es_signer5_signature}} {{_es_signer5_date}} $120,000.00 11/13/2023 3:06:51 PM Page 3 of 17
State of California Office of Traffic SafetyGRANT AGREEMENT Schedule A GRANT NUMBERPS24042 1. PROBLEM STATEMENT Santa Maria has many high-volume 4-lane streets designed with moving cars as the priority. There are few facilities for bicyclists, and safe opportunities for pedestrians to cross busy streets are often many blocks equire multiple crossing guards due to high volumes of fast-moving traffic. Many community members are unaware of recent improvements to pedestrian and bicycle infrastructure and continue to use unsafe or outdated infrastructure on their routes to destinations. Many lack equitable access to safety education or life-saving equipment like helmets. This leads to unsafe conditions such as cyclists on sidewalks, riders executing turns incorrectly, riding the wrong way in bike lanes or riding at night without lights or high-visibility clothing. Local cyclists may be discouraged from riding, decreasing driver awareness of cyclists and reducing incentives for the community to invest in safer bike infrastructure, and students participating in bicycle education at Santa Maria schools may be discouraged from riding to school by intimidating routes. According to the OTS Crash Rankings, Santa Barbara County ranked 2nd highest statewide for bicyclist-involved crashes in 2020, and Santa Maria is no exception with a ranking of 13 out of 61 smaller B-size cities statewide. Crash rates through 2021 were also relatively high for a city with a population of around 110,000. There were 18 bicyclists injured in crashes in 2021 alone. Older riders are also three times more likely for a crash to result in fatality or severe injury. Two recent incidents in Santa Maria involved young students struck on their bicycles while riding to school near busy intersections. In both incidents, the young riders were found at fault after making mistakes like not yielding for a stop sign or being on the wrong side of the road. According to the Santa Maria Times, Officer McGehee, of the Santa Maria Police Department, Elementary up to junior-college-aged students and adults using their bicycles as a form of transportation are most impacted by these issues, as they have little choice but to continue to take their chances along roads that are built for the convenience of celementary school students, where minority enrollment in Santa Maria is close to 100%, while 86% are identified as economically disadvantaged. Those who cannot afford to use a car or do not have access to commuter safety education or equipment currently face reduced access to community services and resources, resulting in a higher likelihood of being involved in a serious crash with a vehicle since students without knowledge of cycling rules and best-practices are more likely to ride unsafely. 2. PERFORMANCE MEASURES A. Goals: 1. Reduce the number of persons killed in traffic crashes. 2. Reduce the number of persons injured in traffic crashes. 3. Reduce the number of pedestrians killed in traffic crashes. 4. Reduce the number of pedestrians injured in traffic crashes. 5. Reduce the number of pedestrians killed under age 15 in traffic crashes. 6. Reduce the number of pedestrians injured under age 15 in traffic crashes. 7. Reduce the number of pedestrians killed over age 65 in traffic crashes. 8. Reduce the number of pedestrians injured over age 65 in traffic crashes. 9. Reduce the number of bicyclists killed in traffic crashes. 10. Reduce the number of bicyclists injured in traffic crashes. 11. Reduce the number of bicyclists under age 15 killed in traffic crashes. 12. Reduce the number of bicyclists under age 15 injured in traffic crashes. 13. Increase bicycle helmet usage. B. Objectives: Target Number 1. Issue a press release announcing the kick-off of the grant by November 15. The kick-off press releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at [email protected], and copied to your OTS Coordinator, for approval 14 days prior to the issuance date of the release. 1 11/13/2023 3:06:51 PM Page 4 of 17

2. Participate in traffic safety fairs and/or community events with an effort to reach individuals.2 3. Participate in the following campaigns: National Walk to School Day, National Bicycle Safety Month, California's Pedestrian Safety Month and National Pedestrian Safety Month. 4 4. Conduct pedestrian and/or bicycle safety presentations with an effort to reach youth. 2 5. Develop a pedestrian and/or bicycle safety program and materials to be adopted as an on-going program in schools with an effort to reach students. 1 6. Distribute pedestrian/bicycle safety items at no cost to youth or community members in need, during bicycle rodeos, presentations, workshops, trainings, and community events to increase safety and visibility. 1 7. Develop bicycle and pedestrian safety educational materials to be distributed during classroom presentations, workshops, and community events. 1 8. Conduct pre and post-grant activities bicycle helmet usage surveys during the months of October (start of the grant) and September (end of the grant). A pre-survey will be required to determine the base year helmet use rate and a post-survey will be required to determine the operational rate. Upload completed survey to GEMS. 2 9. Distribute and properly fit bicycle helmets at no cost to community members in need, at bicycle rodeos, schools, workshops, and community events. 125 10. Purchase bicycle helmets. 125 11. Conduct Bicycle Education Training for PE Teachers to learn to teach newly adopted, district wide, bike safety skills classes. The training course will include a curriculum, in-person scenario training, and one-on-one support during an actual Bicycle Education class to be held at one (1) of seventeen participating SMBSD elementary schools with SR2S programs. When reporting, include date/location/length of training event and total number of trainees, including name of participating school(s). 1 12. Conduct Bicycle Safety Education and Training for students at all participating schools. Classes will typically consist of four (4) sessions during PE and will include helmet fitting, a bicycle safety check, clothing check and skills such as stopping, yielding, using turn signals, among others. Bicycles and helmets will be provided for all students. Program includes instructors, course material, set up and take down, and options for PE teachers to learn the curriculum. When reporting, include date/location, total number of students completing each course, and number of new students who learned to ride for the first time. 200 13. Execute subcontract referenced in the budget. Prior to finalizing the subcontract, grantee will work with the OTS to ensure all costs in the subcontract are allowable. Upon execution of subcontract, upload a copy of the subcontract and request a revision to the grant budget to add new budget line items for associated costs under contractual services. If not yet executed, provide ETA. 1 3. METHOD OF PROCEDURE A. Phase 1 Program Preparation (1st Quarter of Grant Year) section. All training needed to implement the program should be conducted in the first quarter. All grant related purchases needed to implement the program should be made in the first quarter. Media Requirements Issue a press release approved by the OTS PIO announcing the kick-off of the grant by November 15, but no sooner than October 1. The kick-off release must be approved by the OTS PIO and only distributed after the grant is fully signed and executed. If you are unable to meet the November 15 deadline to issue a kick-off press release, communicate reasons to your OTS coordinator and OTS PIO. B. Phase 2 Program Operations (Throughout Grant Year) 11/13/2023 3:06:51 PM Page 5 of 17
Media Requirements The following requirements are for all grant-related activities: Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS coordinator. Optimum lead time would be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated. The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the Coordinator. Pre-approval is not required when using any OTS-supplied template for media advisories, press releases, social media graphics, videos or posts, or any other OTS-supplied educational material. However, copy the OTS PIO at [email protected] and your OTS coordinator when any material is distributed to the media and public, such as a press release, educational material, or link to social media post. The OTS-supplied kick-off press release templates and any kickoff press releases are an exception to this policy and require prior approval before distribution to the media and public. If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy to your OTS Coordinator. Optimum lead time would be 7 days prior to the scheduled release date, but at least 3 business days prior to the scheduled release date for review and approval is appreciated. Press releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are exempt from the OTS PIO approval process. The OTS PIO and your Coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.). Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are exempt from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your Coordinator with embargoed date and time or with Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval. Please send to the OTS PIO at [email protected] for approval and copy your grant coordinator at least 3 business days prior to the scheduled release date. Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval. Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS Coordinator for approval prior to the production or duplication. Use the following standard language in all press, media, and printed materials, space permitting: Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration. Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult your OTS Coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo. Email the OTS PIO at [email protected] and copy your OTS Coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage so OTS has sufficient notice to arrange for attendance and/or participation in the event. 11/13/2023 3:06:51 PM Page 6 of 17
If unable to attend, email the OTS PIO and coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of event within 7 days following significant grant-related event or program. Media and program highlights are to be reflected in QPRs. Any press releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received PIO approval in a prior grant year needs to be resubmitted for approval in the current grant year. Contact the OTS PIO or your OTS Coordinator for consultation when changes from any of the above requirements might be warranted. C. Phase 3 Data Collection & Reporting (Throughout Grant Year) 1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30) 2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30) Collect and report quarterly, appropriate data that supports the progress of goals and objectives. Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments. Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities. Collect, analyze and report statistical data relating to the grant goals and objectives. 4. METHOD OF EVALUATION the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed. 5. ADMINISTRATIVE SUPPORT This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion. 11/13/2023 3:06:51 PM Page 7 of 17
State of California Office of Traffic SafetyGRANT AGREEMENT Schedule B GRANT NUMBERPS24042 FUND NUMBERCATALOG NUMBER (CFDA) FUND DESCRIPTIONTOTAL AMOUNT402PS-24 20.600 State and Community Highway Safety $120,000.00 COST CATEGORY FUND NUMBER UNIT COST OR RATE UNITS TOTAL COST TO GRANT A.PERSONNEL COSTS Straight Time $0.00 Overtime $0.00 Category Sub-Total $0.00 B.TRAVEL EXPENSES $0.00 $0.00 Category Sub-Total $0.00 C.CONTRACTUAL SERVICES Pedestrian and Bicycle Safety Education Program - $111,355 402PS-24 $111,355.00 1 $111,355.00 Category Sub-Total $111,355.00 D.EQUIPMENT $0.00 Category Sub-Total $0.00 E. OTHER DIRECT COSTS Bicycle Helmets 402PS-24 $15.00 125 $1,875.00 Pedestrian/Bicycle Safety Items 402PS-24 $6,190.00 1 $6,190.00 Educational Materials 402PS-24 $580.00 1 $580.00 Category Sub-Total $8,645.00 F.INDIRECT COSTS $0.00 Category Sub-Total $0.00 GRANT TOTAL $120,000.00 11/13/2023 3:06:51 PM Page 8 of 17
State of California Office of Traffic SafetyGRANT AGREEMENT Schedule B-1GRANT NUMBERPS24042 BUDGET NARRATIVE PERSONNEL COSTS -TRAVEL EXPENSES -CONTRACTUAL SERVICES Pedestrian and Bicycle Safety Education Program - $111,355 - Santa Maria Public Works Agency will seek a contractor to assist with fulfilling the goals and objectives of this grant. Work rendered for this program will include the following expenses: fees to provide pedestrian and bicycle safety education to students at local schools and attendees of local community events and safety fairs which includes the cost to produce a bike safety curriculum manual. Prior to finalizing the subcontract, grantee will work with the OTS to ensure the subcontract budget and all costs are allowable. Upon execution of subcontract, grantee will provide a copy of the subcontract to the OTS and will request a grant budget revision to include the associated costs of the subcontract in the grant budget as a prerequisite for claiming these costs. EQUIPMENT -OTHER DIRECT COSTS Bicycle Helmets - Helmets to be distributed at no cost during bicycle rodeos and other bicycle safety related events. Cost per helmet not to exceed an average price of $15, including shipping, handling and tax. More expensive helmets may be purchased if approved by OTS. Pedestrian/Bicycle Safety Items - Cost may include reflective arm and leg bands, tape, zipper pulls, bicycle headlights/taillights, and reflectors to be distributed at no cost during bicycle rodeos, presentations, workshops, trainings, and community events to increase safety and visibility. Additional items may be purchased if approved by OTS. Educational Materials - Costs of purchasing, developing or printing brochures, pamphlets, fliers, coloring books, posters, signs, and banners associated with grant activities, and traffic safety conference and training materials. Items shall include a traffic safety message and if space is available the OTS logo. Additional items may be purchased if approved by OTS. INDIRECT COSTS -STATEMENTS/DISCLAIMERS There will be no program income generated from this grant. 11/13/2023 3:06:51 PM Page 9 of 17
State of California Office of Traffic SafetyGRANT AGREEMENT Exhibit A GRANT NUMBERPS24042 Certifications and Assurances for Fiscal Year 2024 Highway Safety Grants (23 U.S.C. Chapter 4 or Section 1906, Public Law 109-59, as amended by Section 25024, Public Law 117-58) The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies, and laws in effect with respect to the periods for which it receives grant funding. Applicable provisions include, but are not limited to, the following: GENERAL REQUIREMENTS The State will comply with applicable statutes and regulations, including but not limited to: 23 U.S.C. Chapter 4Highway Safety Act of 1966, as amended; Sec. 1906, Public Law 109-59, as amended by Sec. 25024, Public Law 117-58; 23 CFR part 1300Uniform Procedures for State Highway Safety Grant Programs; 2 CFR part 200Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; 2 CFR part 1201Department of Transportation, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. NONDISCRIMINATION (applies to all subrecipients as well as States) The State highway safety agency [and its subrecipients] will comply with all Federal statutes and implementing regulations relating to not limited to: Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); 49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department of TransportationEffectuation of Title VI of the Civil Rights Act of 1964); 28 CFR 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964); The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex); Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27; The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age); The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition rograms or activities of the Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federally-funded or not); Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38; Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations (preventing discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations); Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (requiring that recipients of Federal financial assistance provide meaningful access for applicants and beneficiaries who have limited English proficiency (LEP)); Executive Order 13985, Advancing Racial Equity and Support for Underserved Communities through the Federal Government (advancing equity across the Federal Government); and Executive Order 13988, Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation (clarifying that sex discrimination includes discrimination on the grounds of gender identity or sexual orientation). The preceding statutory and regulatory cites hereinafter are referred to as the GENERAL ASSURANCES 11/13/2023 3:06:51 PM Page 10of 17
In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that:be denied the benefits of, or be otherwise subjected to discrimination under any program or activity, for which the Recipient receives Federal The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI of the Civil Rights Act of 1964 and other non-discrimination requirements (the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these nondiscrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted.SPECIFIC ASSURANCESMore specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted Highway Safety Grant Program:1. 49 CFR part 21will be (with regard to anfacilitated,in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations.2.The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with all Highway Safety Grant Programs and, in adapted form, in all proposals for negotiated agreements regardless of funding source:U.S.C 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin3.The Recipient will insert the clauses of appendix A and E of this Assurance (also referred in every contract or agreement subject to the Acts and the Regulations.4.The Recipient will insert the clauses of appendix B of DOT Order 1050.2A, as a covenant running with the land, in anydeed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient.5.That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurancewill extend to the entire facility and facilities operated in connection therewith.6.That where the Recipient receives Federal financial assistance in the form of, or for the acquisition of, real property or aninterest in real property, the Assurance will extend to rights to space on, over, or under such property.7.That the Recipient will include the clauses set forth in appendix C and appendix D of this DOT Order 1050.2A, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties:a.for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; andb.for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.8.That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods:a.the period during which the property is used for a purpose for which the Federal financial assistance is extended,or for another purpose involving the provision of similar services or benefits; orb.the period during which the Recipient retains ownership or possession of the property.9.The Recipient will provide for such methods of administration for the program as are found by the Secretary ofTransportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance.10.The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance.By signing this ASSURANCE, the State highway safety agency also agrees to comply (and require any sub-recipients, sub-grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing NHTSA's access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by NHTSA. You must keep records, reports, and submit the material for review

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upon request to NHTSA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance. The State highway safety agency gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the Highway Safety Grant Program. This ASSURANCE is binding on the State highway safety agency, other recipients, sub-recipients, sub-grantees, contractors, subcontractors and their subcontractors', transferees, successors in interest, and any other participants in the Highway Safety Grant Program. The person(s) signing below is/are authorized to sign this ASSURANCE on behalf of the Recipient. THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103) The Subgrantee will provide a drug-free workplace by: a.Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; b.Establishing a drug-free awareness program to inform employees about: 1. The dangers of drug abuse in the workplace; 2. The grantee's policy of maintaining a drug-free workplace; 3. Any available drug counseling, rehabilitation, and employee assistance programs; 4. The penalties that may be imposed upon employees for drug violations occurring in the workplace; 5. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph (a); c.Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will 1. Abide by the terms of the statement; 2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; d.Notifying the agency within ten days after receiving notice under subparagraph (c)(2) from an employee or otherwise receiving actual notice of such conviction; e.Taking one of the following actions, within 30 days of receiving notice under subparagraph (c)(2), with respect to any employee who is so convicted 1. Taking appropriate personnel action against such an employee, up to and including termination; 2. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; f.Making a good faith effort to continue to maintain a drug-free workplace through implementation of all of the paragraphs above. POLITICAL ACTIVITY (HATCH ACT) (applies to all subrecipients as well as States) The State will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. CERTIFICATION REGARDING FEDERAL LOBBYING (applies to all subrecipients as well as States) CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies, 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 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 an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, with its instructions; 3.The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 11/13/2023 3:06:51 PM Page 12 of 17
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 section1352, 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. RESTRICTION ON STATE LOBBYING (applies to subrecipients as well as States) None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal. CERTIFICATION REGARDING DEBARMENT AND SUSPENSION (applies to all subrecipients as well as States) INSTRUCTIONS FOR PRIMARY TIER PARTICIPANT CERTIFICATION (STATES) 1.By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200. 2.The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction. 3.The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment. 4.The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 5.The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations. 6.The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 7.The prospective primary tier participant further agrees by submitting this proposal that it will include the clause titled Debarment, Suspension, Ineligibility and Voluntary ExclusionLower Tier Covered provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200. 8.A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website (https://www.sam.gov/). 9.Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate the transaction for cause or default. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERSPRIMARY TIER COVERED TRANSACTIONS 11/13/2023 3:06:51 PM Page 13 of 17

1.The prospective primary tier participant certifies to the best of its knowledge and belief, that it and its principals: a.Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excludedfrom participating in covered transactions by any Federal department or agency;b. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and d. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default. 2.Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal. INSTRUCTIONS FOR LOWER TIER PARTICIPANT CERTIFICATION 1.By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200. 2.The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment. 3.The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4.The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations. 5.The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 6.The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled Ineligibility and Voluntary ExclusionLower Tier Covered tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200. 7.A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website ( https://www.sam.gov/). 8.Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9.Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSIONLOWER TIER COVERED TRANSACTIONS 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency. 11/13/2023 3:06:51 PM Page 14 of 17

2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. BUY AMERICA (applies to subrecipients as well as States) The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation. CERTIFICATION ON CONFLICT OF INTEREST (applies to subrecipients as well as States) GENERAL REQUIREMENTS No employee, officer, or agent of a State or its subrecipient who is authorized in an official capacity to negotiate, make, accept, or approve, or to take part in negotiating, making, accepting, or approving any subaward, including contracts or subcontracts, in connection with this grant shall have, directly or indirectly, any financial or personal interest in any such subaward. Such a financial or personal interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or personal interest in or a tangible personal benefit from an entity considered for a subaward. Based on this policy: 1.The recipient shall maintain a written code or standards of conduct that provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents. a. The code or standards shall provide that the recipient's officers, employees, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential subawardees, including contractors or parties to subcontracts. b. The code or standards shall establish penalties, sanctions, or other disciplinary actions for violations, as permitted by State or local law or regulations. 2.The recipient shall maintain responsibility to enforce the requirements of the written code or standards of conduct. DISCLOSURE REQUIREMENTS No State or its subrecipient, including its officers, employees, or agents, shall perform or continue to perform under a grant or cooperative agreement, whose objectivity may be impaired because of any related past, present, or currently planned interest, financial or otherwise, in organizations regulated by NHTSA or in organizations whose interests may be substantially affected by NHTSA activities. Based on this policy: 1.The recipient shall disclose any conflict of interest identified as soon as reasonably possible, making an immediate and full disclosure in writing to NHTSA. The disclosure shall include a description of the action which the recipient has taken or proposes to take to avoid or mitigate such conflict. 2.NHTSA will review the disclosure and may require additional relevant information from the recipient. If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determine that it is otherwise in the best interest of NHTSA to continue the award and include appropriate provisions to mitigate or avoid such conflict. 3.Conflicts of interest that require disclosure include all past, present, or currently planned organizational, financial, contractual, or other interest(s) with an organization regulated by NHTSA or with an organization whose interests may be substantially affected by NHTSA activities, and which are related to this award. The interest(s) that require disclosure include those of any recipient, affiliate, proposed consultant, proposed subcontractor, and key personnel of any of the above. Past interest shall be limited to within one year of the date of award. Key personnel shall include any person owning more than a 20 percent interest in a recipient, and the officers, employees or agents of a recipient who are responsible for making a decision or taking an action under an award where the decision or action can have an economic or other impact on the interests of a regulated or affected organization. PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to all subrecipients as well as States) The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists. 11/13/2023 3:06:51 PM Page 15 of 17
POLICY ON SEAT BELT USEIn accordance with Executive Order 13043, Increasing Seat Belt Use in the United States, dated April 16, 1997, the Grantee is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this Presidential initiative. For information and resources on traffic safety programs and policies for employers, please contact the Network of Employers for Traffic Safety (NETS), a public-private partnership dedicated to improving the traffic safety practices of employers and employees. You can download information on seat belt programs, costs of motor vehicle crashes to employers, and other traffic safety initiatives at www.trafficsafety.org. The NHTSA website (www.nhtsa.gov) also provides information on statistics, campaigns, and program evaluations and references. POLICY ON BANNING TEXT MESSAGING WHILE DRIVING In accordance with Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, and DOT Order 3902.10, Text Messaging While Driving, States are encouraged to adopt and enforce workplace safety policies to decrease crashes caused by distracted driving, including policies to ban text messaging while driving company-owned or rented vehicles, Government-owned, leased or rented vehicles, or privately-owned vehicles when on official Government business or when performing any work on or behalf of the Government. States are also encouraged to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving, and education, awareness, and other outreach to employees about the safety risks associated with texting while driving. 11/13/2023 3:06:51 PM Page 16 of 17
INSTRUCTIONS FOR ADDING OR UPDATING GEMS USERS 1. Each agency is allowed a total of FIVE (5) GEMS Users. 2. GEMS Users listed on this form will be authorized to login to GEMS to complete and submit Quarterly Performance Reports (QPRs) and reimbursement claims. 3. Complete the form if adding, removing or editing a GEMS user(s). 4. The Grant Director must sign this form and return it with the Grant Agreement. CURRENT GEMS USER(S) 1. Mark Mueller Title: Principal Civil Engineer Media Contact: No Phone: (805) 925-0951 Ext. 1667 Email: [email protected] State of California Office of Traffic SafetyOTS-55 Grant Electronic Management System (GEMS) AccessExhibit C GRANT NUMBERPS24042 GRANT DETAILS Grant Number: PS24042 Agency Name: Santa Maria Public Works Grant Title: Pedestrian and Bicycle Safety Program Agreement Total: $120,000.00 Authorizing Official: Alex Posada Fiscal Official: Xenia Bradford Grant Director: Mark Mueller 11/13/2023 3:06:51 PM Page 17of 17
Complete the below information if adding, removing or editing a GEMS user(s) GEMS User 1Add/Change {{[]c11_es_:signer1}} Remove Access {{[]c12_es_:signer1}}Add as a media contact? Yes {{[]c1_es_:signer1}} No{{[]c2_es_:signer1}}{{UserName1_es_:signer1 }} {{UserTitle1_es_:signer1 }}Name Job Title{{UserEmail1_es_:signer1 }} {{UserPhone1_es_:signer1 }}Email address Phone numberGEMS User 2Add/Change {{[]c13_es_:signer1}} Remove Access {{[]c14_es_:signer1}}Add as a media contact? Yes {{[]c3_es_:signer1}}No {{[]c4_es_:signer1}}{{UserName2_es_:signer1 }} {{UserTitle2_es_:signer1 }}Name Job Title{{UserEmail2_es_:signer1 }} {{UserPhone2_es_:signer1 }}Email address Phone numberGEMS User 3Add/Change {{[]c15_es_:signer1}} Remove Access {{[]c16_es_:signer1}}Add as a media contact? Yes {{[]c5_es_:signer1}}No {{[]c6_es_:signer1}}{{UserName3_es_:signer1 }} {{UserTitle3_es_:signer1 }}Name Job Title{{UserEmail3_es_:signer1 }} {{UserPhone3_es_:signer1 }}Email address Phone numberGEMS User 4Add/Change {{[]c17_es_:signer1}} Remove Access {{[]c18_es_:signer1}}Add as a media contact? Yes {{[]c8_es_:signer1}}No {{[]c7_es_:signer1}}{{UserName4_es_:signer1 }} {{UserTitle4_es_:signer1 }}Name Job Title{{UserEmail4_es_:signer1 }} {{UserPhone4_es_:signer1 }}Email address Phone numberGEMS User 5Add/Change {{[]c19_es_:signer1}} Remove Access {{[]c20_es_:signer1}} Add as a media contact? Yes {{[]c9_es_:signer1}}No {{[]c10_es_:signer1}}{{UserName5_es_:signer1 }} {{UserTitle5_es_:signer1 }}Name Job Title{{UserEmail5_es_:signer1 }} {{UserPhone5_es_:signer1 }}Email address Phone numberForm completed by: {{Sig_es_:signer1:signature}} Date: {{Dte1_es_:signer1:date}}As a signatory I hereby authorize the listed individual(s) to represent and have GEMS user access.{{Sig_es_:signer2:signature}} {{Name1_es_:signer2:fullname }}Signature Name{{Dte2_es_:signer2:date}} Grant DirectorDate Title

_____________________________________________________________________________________

Page 12 ends

EXHIBIT “E”

MOVE SANTA BARBARA COUNTY PROPOSAL

FOR THE COUNCIL MEETING OF MARCH 19, 2024

COUNCIL AGENDA REPORT

TO: City Council

FROM: Interim City Manager Alex Posada

BY: Interim Recreation and Parks Director Angela Oslund

SUBJECT: Adoption of a Resolution Approving a Purchase and Sales Agreement for Real Property intended for the Santa Maria Sports Park

Description:

The City Council will consider authorizing the purchase of the real property known as Lot 6 of Tract 6022 (Blosser Ranch subdivision) , APN 117-240-055, consisting of approximately twenty-one and 13/100s (21.13) gross acres of undeveloped land located in Santa Maria, Santa Barbara County, California

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required

RECOMMENDATION:

Adopt a Resolution approving the purchase and sale agreement for Lot 6 of Tract 6022, APN 117-240-055.

BACKGROUND:

Blosser Fee Owner, LLC, a Delaware limited liability company, has expressed a willingness to sell the real property known as Lot 6 of Tract 6022 (Blosser Ranch subdivision), APN-117-240-055 (“property”) to the City of Santa Maria. This property is part of the Blosser Ranch development, within the Blosser Southeast Specific Plan, consisting of single-family and multi-family housing, commercial uses, a school site, with land set aside for a future fire station and this property for the park, to be transferred from the developer/property owner to the City. The terms and conditions of the purchase are detailed in the Purchase Agreement, providing a comprehensive framework for the acquisition of the future Santa Maria Sports Park.

DISCUSSION:

A Multi-Sports Field Committee was convened in 2016 under the Recreation and Parks Commission to evaluate the need and public interest in developing a new Sports Park/Complex. This project is many years in the making, an d the purchase of this real property will enable the City to move forward with the next phase of the Sports Complex 2 project. The developer/property owner is conveying the property to the City in exchange for a credit on Quimby Act/Subdivision Fees for all phases of the Blosser Ranch project.

The acquisition of Lot 6 of Tract 6022 (APN-117-240-055) is strategically significant for the City of Santa Maria, as it will serve as a cornerstone for the City of Santa Maria’s new Sports Park, also known as the Sports Complex. This 21.13 acre gross property is located at the intersections of Stowell Road and Battles Road crossing South Depot Street, running parallel to the Santa Maria Valley Railroad right of way.

The property's expansive acreage offers ample spac e for sports facilities, recreational amenities, and community-oriented programming, aligning perfectly with the City's vision for the development of the Sports Park.

The City has received a copy of the pesticide remediation and site pre-closure letter from the Santa Barbara County Public Health Department regarding environmental studies completed at this property in preparation for development. The City has negotiated an extended purchase and sale closure date in order to complete any remaining due diligence investigation needed to finalize the Purchase and Sale Agreement.

Alternative(s)
The City Council may choose not to approve the purchase of the property for the Santa Maria Sports Park. However, this decision would impede the potential benefits associated with the development of a community -centric sports and recreational facility, impacting the city's ability to provide enhanced recreational opportunities.

Fiscal Considerations
The fiscal impact of the purchase is outlined in the Purchase Agreement. Buyer shall pay all closing costs, including transfer taxes, recording fees, and escrow fees. The Fee Credits provided to the Seller are accounted for within the Agreement. Any additional costs associated with the acquisition will be covered by the City as specified in the Agreement for the Santa Maria Sports Park.

Impact to the Community
The acquisition of Lot 6 of Tract 6022 for the Santa Maria Sports Park will have a positive impact on the community by providing a dedicated space for sports and recreational activities. The development of the Sports Park aligns with the City's commitment to enhancing community well -being and fostering a sense of community through shared recreational experiences.

The approval of this agenda i tem will mark a significant step towards realizing the City's goals for the development of the Santa Maria Sports Park.

Attachment A: Purchase and Sales Agreement- Blosser- Park Purchase and Sale Agreement

1 PURCHASE AGREEMENT

1. Purchase and Sale . Pursuant to this Purchase Agreement (the “ Agreement”), dated __________, 202 4 (the “ Agreement Date ”), Blosser Fee Owner, LLC, a Delaware limited liability company (“Seller”), agrees to sell to the City of Santa Maria (“Buyer”), and Buyer agree s to purchase from Seller, the real property known as Lot 6 of Tract 6022 (Blosser Ranch subdivision / Acquistapace Tract) (the “ Property”) consisting of approximately twenty-one and 13/100s (21.13) acres of gross undeveloped land located in Santa Maria, Santa Bar bara County, California, as more particularly described and depicted on Exhibit A hereto.

2. Quimby Act/ Subdivision Fee Credits . In exchange for Seller’s conveyance of the Property to Buyer, Buyer agrees to provide Seller wit h a full credit for any and all Quimby Act/Subdivision Fees payable under Title 11 of the Santa Maria Municipal Code or any similar or analogous statute (“Fees”) for all phases of the subdivision, development, and construc tion of Tract 6022 in Santa Maria (including but not limited to Lots 1 through 5 and 7 through 12 of Tract 6022), also known as Blosser Ranch (collectively, the “Project”), including any increases in such fees in excess of those that would be payable for the Project on the Closing Date (co llectively, the “ Quimby Act/Subdivision Fee Credits”); provided that the Quimby Act/Subdivision Fee Credit shall not include a credit for Fees for more than 1170 non-accessory residential dwellings units (i.e. units which are not accessory dwelling units) in total; provided further tha t, to the extent , as a result of change in law after the date of this Agreement, Fees are payable for accessory dwelling units, Seller shall receive a Quimby Act/Subdivision Fee Credit for up to 327 accessory dwelling units at the Project. This right to the Quimby Act/Subdivision Fee Credits shall run with the land an d inure to the benefit of Seller and any subsequent or successor owner of all or any portion of the Project, and to the extent th e Project is owned by more than one owner, such owners shall have the right to allocate the Quimby Act/ Subdivision Fee Credits amongst such owners as determined by such own ers in their sole discretion. For avoidance of doubt, Buyer’s obligation hereunder is personal to Buyer and may n ot be assigned. Based on the current plans for the Project as of the date of this Agreement and the law in effect as of the date of this Agreement, the Quimby Act/Subdivision Fee Credits would be $3,242,172. Other than Quimby Act/Subdivision Fee Credits for up to 1170 non-accessory residential dwelling units and up to 327 accessory dwelling units at the Project, no other fees are credited to Seller pursuant to this Agreement. This Section 2 shall survive the Close of Escrow.

3. Opening of Escrow. Within one ( 1) Business Day (hereinafter defined) after the mutual execution of this Agre ement, the parties shall open an escrow (the “ Escrow”) with Fidelity Title Company, 555 S. Flower Stree t, Suite 4420, Los Angeles, CA 90071 , Attn : Bobby Purd y (“Escrow Holder”), and Buyer shall deliver to Escrow Holder a signed cop y of this Agreement. The Parties shall execute such additional instructions not inconsistent or conflictin g with the provisions of this Agreement which may be reasonably required by Escrow Holder and shall be bound by Escrow Holder’s instructions; provided, however, if any conflict or inconsistency between the provisions of this Agreement and the provisions of Escrow Holder’s instructions exists or arises, the provisions of this Agreement shall control.

4. Close of Escrow . The “Close of Escrow ” shall occur on the date that is forty-five (45) business d ays after the Agreement Date (the “ Closing Date”). Buyer shall pay al l clo sing costs and expenses, including t ransfer taxes and recording fees and escrow fees incurred in connection wi th the Close of Escrow and for any title policy desired by Buyer (“Closing Costs”). Any title insurance which Buyer elects to purchase with respect to the Property shall be at Buyer’s sole expense, and the issuance of such policy shall not be a condition to the Buyer’s obligations hereunder. Buyer and Seller shall each pay their own attorneys’ fees incurred in connection with this Agreement and the Close of Escrow.

5. NO REPRESE NTATIONS; PURCHASE AS -IS. NEITHER SELLE R, NOR

ANYONE A CTING FOR OR ON BEHALF OF SELLER, HAS MADE ANY

REPRESENTATION, WARRANTY, PROMISE OR STATEMENT, EXPRESS OR IMPLIED, 2 TO BUYER, OR TO ANYONE ACTING FOR OR ON BEHALF OF BUYER, CONC ERNING

THE PROPERTY OR ADJACENT REMAINING PROJECT, INCL UDING, WITHOUT

LIMITATION, THE POTENTIAL USE OR POTENTIAL DEVELOPMENT THEREOF , IF

ANY, THE VALUE THEREOF, IF ANY, OR ANY OTHER CHARACTERISTIC OR FEATU RE OF THE PROPERTY OR ADJACENT REMAINING PROJECT. BUYER FURTHER

REPRESENTS AND WARRANTS THAT, IN ENTER ING INTO THIS AGREEMENT, BUYE R

HAS NOT RELIED ON ANY REPRESENTATION, WARRANTY, PROMISE OR STATEMENT,

EXPRESS OR IMPLIED, OF SELLE R, OR ANYONE ACTING FOR OR ON BEHALF OF

SELLER, AND THAT BUYER IS PURCHASING THE PR OPERTY BASED SOLELY ON BUYER’S OWN PRIOR D UE DILIGENC E INVESTIGATIONS, IN SPECTIONS AN D EXAMINATIONS OF THE PROPERTY (O R BUYER ’S ELEC TION NOT TO DO SO); AND THAT, BUYER IS PU RCHASING THE PROPERTY IN AN “AS-IS, WHERE-IS” AND “WITH ALL FAULTS” PHYSICAL AND LEGAL CONDITION AND IN AN “AS-IS, WHERE-IS” AND “WITH ALL FAULTS” STATE OF REPAIR. BUYER DOES HEREBY WAIVE, AND SELLER

DOES HEREBY DISCLAIM, ALL WARRANTIES OF ANY TYPE OR KIND WHATSOEVER WITH RE SPECT TO THE PROPERTY OR REMAINING ADJACENT PROJECT .

SPECIFICALLY, BUYER AGREES THAT IT IS NOT RELYING ON SELLER ’S

DEVELOPMENT OR CONSTRUCTION OF IMPROVEMENTS ON THE PROPERTY OR ANY

OTHER PO RTION OF THE ADJACENT PROJECT, INCLUDING BUT NOT LIMITED TO,

THE COMPLETION OF LA BREA AVENUE OR WESTERN A VENUE OR A NY UTILITY

AND SIDEWALK OR ACCESS IMPROVEMENTS ON THE PROPERTY OR THE ADJACENT

PROJECT AND THAT SELLER MAY ELE CT TO MAKE SUCH IMPROVEMENTS OR NOT

MAKE SUCH IMPROVEMENTS AND IF ELECTED , MAY MAKE SUCH I MPROVEMENTS AT SUCH TIME DETERMINED BY SELLER IN ITS SOLE DISCRETION.

This Section 5 shall survive the Close of Escrow.

6. Release and Indemnity by Buyer. Buyer, and any person or entity claiming by, t hrough or u nder Buyer, and Buyer on behalf of any succe ssor or assign , each hereby f ully and irrevocably releases, discharges and waives its rights to recover from Sell er and its affiliates and each of their respective direct and indirect agents, shareholders, members, and owners (the “Seller Parties”), any and all claims that Buyer may now have or hereafter acquire aga inst any of the Seller Parties for any cost, loss, claim, penalty, fine, lien, ju dgment, liability, damage, expense, action or cause of acti on (including, without li mitation, attorneys’ fees and cos ts) (collectively, “Claims”), whether foreseen or unfore seen, direct or indirect, k nown or un known, arising from or related to events or circumstances which have heretofore or may hereafter o ccur in connection with this Agreement, or at or i n relation to the Property.

Buyer agrees to indemnify, defend and hold Seller Parties, harmless from Claims made after the Closing Date hereof with respect to the Pr operty. This re lease includes Claims of which Buyer is presently unaware or which Buyer does not presently suspect to exist in its favor which, if known by B uyer, would materially affect Buyer ’s re lease of Seller. In connection with the gener al release set forth in th is Section 5, Buyer specif ically waives the provisions of California Civil C ode Section 1542, which provides as follows:
“A general release does not extend t o claim s that the creditor or releasing party does not know or suspect to exist in his or her favor a t the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” ________________________
Buyer’s Initials

This Section 6 shall survive the Close of Escrow.

7. Other Conditions:
3 (a) Seller is responsible for the following: Installation of the proposed 10” waterline on the Property as set forth in the conditions of approval of permit for the Acquistapace Tract M ap 6022 (Blosser Ranch subdivision). Said waterline is to be installed and in -service no later than September 30, 2024. If Seller fails to construct the waterline by September 30, 2024, Seller shall authorize Buyer and its designated contractor to construct the waterline and to put it in-service and, as Buyer’s sole and exclusive remedy at law or equity for Seller’s failure to install such waterline by such date, Seller shall reimburse Buyer for all third party out of pocket costs incurred by Buyer with installation of such waterline up to a maximum of $225,000 , which reimbursement shall be payable by Seller to Buyer as additional fees payable as part of Seller’s development of Phase 1 of the Project. (b) Buyer is responsible for the following: Installation of a multi -purpose path extending from Battles Road to Stowell Road as set forth in the condition s of approval of permit for the Acquistapace Tract Map 6022 (Blosser Ranch subdivision) affecting the Property, as depicted on the approved map.

8. Deposits by Seller. No lat er than one (1) Bu siness Day prior to the Closing Date, Seller shall deposit with Escrow Holder the following:
(a) A grant deed in the form of Exhibit B attached hereto, duly executed by Seller, conveying the Property to Buyer (the “Deed”);
(b) A certification of non -foreign status in the form required by law , if required by the Escrow Holder;
(c) A mutually acceptable form of a joint closing statement, setting forth the Closing Costs respecting the Property to be paid pursuant to this Agre ement (the “Closing Statement”), duly executed by Seller; and
(d) A title affidavit (if in form and substance acceptable to Seller), evidence of good standing and authority, and such other customary instruments as are reasonably required by Escrow Holder or Title Company or otherwise required to proceed to the Closing and consummate the purchase and sale of the Property in accordance wit h the terms of this Agreement; provided that any such ins truments do not increase Seller’s liability or obligations under this Agreement.

9. Deposits by Buyer. Except as other wise expressly set forth below, Buyer shall, no later than two (2) Business Days prior to the Closing Date, deposit with Escrow Holder the following:
(a) The Closing Costs, as described under Section 2 above; (b) One (1) counterpart original or copy of the Closing Statement, duly executed by Buyer; (c) Applicable sales tax f ilings, evidence of good standing and authority, and such ot her customary instruments as are reasonably requ ired by Seller or Escrow Holder or otherwis e required to proceed to the Closing and consum mate the purchase and sa le of the Property in accordance wi th the terms of this Agreement; provided that any such instruments do not materially increase Buyer’s liability or obligations under this Agreement; and
(d) Documentation evidencing Buyer and any applicable government agency or municipalities’ approval of the issuance and granting of the Quimby Act/Subdivision Fee Credits to Seller without any further condition in a form acceptable to Seller.

10. Buyer Access to Property. Seller will make available to Buyer and Buyer's consultants, agents and employees, reasonable access to the Prope rty for such inspections, examinations, tests, or any other reasonable investigations of the Property as Buyer deems appropriate, subject to the following:
4 (a) Buyer agrees t hat all entr y and access to the Property, and the c onduct of all physical tests, examinations and other studies that Buyer elects to make und er this Agreement, must be scheduled through and coordinated with Seller. Seller agrees to cooperate with Buyer with respect to the scheduling of all requested entry and access and the performance o f tests, e xaminations and other studies as contemplated hereunder.
(b) Upon the completion of any such inspection or test, Buy er will promptly restore the Property to its condition prior to such inspection or test, at Buyer’s sole expense. (c) Buyer agrees to defend, indemnify and hold Sel ler harmless from and against any and all mechanic’s liens that may be filed against the Property and any and all other liabilities and claims for personal injury or proper ty damage, including reasonable atto rneys’ fees, ari sing by re ason of the performance o f any of such ins pection of the Pr operty or access to the Property by Buyer or its representatives.
(d) This Section 10 shall survive the Close of Escrow or termination of this Agreement.

11. Representations and Warranties. Seller and Buyer represent, warrant and covenant that it has received all necessary approvals (including, with regard to Buyer, any approvals necessary to grant the Quimby Act/Subdivision Fee Credits to Seller at Close of Escrow) and has all requisite power and authority to enter into this Agreement and to perform its obligations h ereunder. This Section 11 shall survive the Close of Escrow.

12. Construction. Buyer and Seller and attorneys for each have participated in the drafting and preparation of this Agreement. Therefor e, the provisions of this Agreement shall not be construed in favor of or against either party, but shall be construed as if b oth Buyer and Seller equally prepared this Agreement.

13. Attorney Fees. If the Agree ment or the transaction contempla ted herein gives rise to a lawsuit or other legal p roceeding between the par ties her eto, the prevailin g party sha ll be entitled to recover its costs and reasonable attorneys’ fees in addition to any other judgment of the court.

14. Assignment. Seller may assign this Agreement to a successor owner of the Property and any le nder to Seller or its affiliate without obtaining the prior written consent of Buyer. Any other assignment of this Agreement must be consented to by both parties in writing.

15. Entire Agreement. The Agreement sets forth all of the promises, covenants, agreements, conditions and undertakings between the parties with respect to the subject matter of this Agreement, and supersedes all prior and con temporaneous agreements and unde rstandings. The Agreement may not be changed orally but only by an agreement in writing, duly execu ted by the party or parti es against whom enforcement of any waiver, change, modification, consent or discharge is sought.

16. Limitation on Liability . In no ev ent shall any individual person, member, partner, affiliate, officer, director, agent or emp loyee of Seller or Buyer or any of Seller’s or Buyer’s affiliates be or be held liable o r respon sible in any way for the obligations or liabilities of such Party under this Agreement.

17. Notices. All notices required or permitted by the Agreement shall be in writing and may be delivered in person to either party at the addresses listed after the signature blocks in the Agreement, or may be sent by registered or certifie d mail, with postage prepaid, return receipt requested or delivered by Express Mail of the U .S. Postal Service or Fede ral Express or any other courier ser vice gu arantying overnight delivery, or may be transmitted by electronic mail. Any notice sent by reg istered or certified , return receipt requested, mail shall be deemed duly given and received 72 hours after the same is so addressed, and notices delivered b y overnight service shall be deemed to have been given 24 hours after 5 deliver of the same, charges prepaid. Any no tice or other document sent by any other manner shall be effective only upon actual receipt thereof.

18. Further Assuran ces and Documentation . Each par ty agrees in goo d faith to take such further actions and exe cute such further documents as m ay be necessary or appropriate to ful ly evidence and carry out the intent and purpose of this Agreement.

19. Partial Invalidity. If any term or provision or por tion thereof of this Agreement or the application thereof to any person or circumstance shall, to a ny extent, be in valid or unenforceable, the remainder of this Agreement, or the application of such term or provision or portion thereof to persons or circumstances o ther than t hose as to which it is held invali d or unenforc eable, shall not be affected thereby, and each such term and provisio n of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

20. Calculation of Time . If a da te for taking an action or giving notice falls on a Saturday, Sunday or holiday, then the date for the performance of such action or giving of such notice automatically shall be extended to the next succeeding business day. The term “Business Day” means a day other than a Saturday, Sunday or holiday.

21. Counterparts and Electronic Signatures. The Agreement may be executed simultaneously in counterparts, or with electronic signatures through an electronic signature platform such as DocuSig n, either of which shall be deemed a n original, but all of which together shall constitute one and th e same instrument.

22. Governing Law. This Agreement shall be governed by the laws of California.

[Signatures follow on the next page]

6 IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the Agreement Date.

SELLER:

BLOSSER FEE OWNER, LLC,
a Delaware limited liability company

By: ______________________
Name:

Title:

Address:

BUYER:

CITY OF SANTA MARIA

By: ______________________
Name:

Title:

Address:

7 EXHIBIT A
Legal Description of the Property

APN: 117-240-055
1 EXHIBIT B

FORM OF GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

_____________________________
_____________________________
_____________________________
_____________________________
Attn:_________________________

APN: (Space Above For Recorder’s Use)

City of Santa Maria
County of Santa Barbara

GRANT DEED
FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged,

BLOSSER FEE OWNER, LLC, a Delaware limited liability company hereby GRANTS
to the CITY OF SANTA MARIA,
that certain real property (“Property”) in the City of Santa Maria, County of Santa Barbara, State of California, together with all improvements located thereon, which is more particularly described on Exhibit “A” attached hereto and incorporated herein by this reference.

Commonly known as:

This conveyance is subject to: any liens not now due or payable for taxes and assessments for real property; all other covenants, conditions, restrictions of record; reservations of record; easemen ts, encumbrances, and title matters of record; a nd all matters which an accurate survey and/or inspection of the Property would reveal.

In exchange for Grantor’s conveyance of the Property to Grantee, Grantee agrees to provide Grantor with a full credit for any and all Quimby Act/Subd ivision Fees payable under Titl e 11 of the Santa Maria M unicipal Code or any similar or analogous statute (“ Fees”) for all phases o f the subdivision, development, and construction of Tract 6022 in Santa Maria (incl uding but not limi ted to Lots 1 through 5 and 7 through 12 of Tract 6022) , also known as Blosser Ranch (collectively, the “Project”), including any increases in such fees in excess of those that would be payable for the Project on the date of this Grant Deed (collectively, the “Quimby Act/Subdivision Fee Credits”); provided that the Quimby Act/ Subdivision Fee Credit shall not include a credit for Fees for more than 1170 non- accessory residential dwellings units (i.e. units which are not accessory dwelling unit s) in total; provided further that, to the extent, as a result of change in law after the date of this Grant Deed or otherwise, Fees are payable for accessory dwelling units, Grantor shall receive a Quimby Act/Subdivision Fee Credit for up to 327 accessory dwelling units at the Project . This right to the Quimby Act/Subdivision Fee Credits 2 shall run with the land and inure to the benefit of Grantor and any subsequent or successor owner of all or any portion of the Project, and to the extent the Project is owned by more than one owner, such owners shall have the right to alloca te the Quimby Act/ Subdivision Fee Credits amongst such owners as determined by such owners in their sole discretion. For avoidance of doubt, Grantee’s obligation hereunder is personal to Grantee and may not be assigned. Based on the current plans for th e Project as of the date of this Agreement and the law in effect as of the date of t his Grant Deed , the Quimby Act/Subdivision Fee Credits would be $3,242,172. Other than Quimby Act/Subdivision Fee Credits for up to 1170 non-accessory residential dwelling units and up to 327 accessory dwelling units at the Project, no other fees are credited to Grantor pursuant to this Grant Deed . 3 [Signatures/Notary Acknowledgement/Legal Description to be provided under final form of Grant Deed] IN WITNESS WHEREOF, Grantor has caused this Grant Deed to be executed as of the _____ day of ________________, 202__.

GRANTOR:

BLOSSER FEE OWNER, LLC,
a Delaware limited liability company
By: ______________________
Name:

Title:

GRANTEE:

CITY OF SANTA MARIA
By: ______________________
Name:

Title:

4 EXHIBIT A: LEGAL DESCRIPTION

APN: 117-240-055
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA, APPROVING THE
PURCHASE AND SALE AGREEMENT FOR LOT 6 OF TRACT
6022,
APN-117-240-055

WHEREAS, City staff and Blosser Fee Owner, LLC (“Seller) have negotiated a draft Purchase and Sale Agreement (“PSA”) for the acquisition of the property located at Lot 6, Tract 6022 (the “Property”); and

WHEREAS, Lot 6 of Tract 6022 (Blosser Ranch subdivision/Acquistapace Tract), (the “Property”), recorded on March 16, 2023, is a 21.13 acre gross subdivision lot located at the intersections of Stowell Road and Battles Road crossing South Depot Street, running parallel to the Santa Maria Valley Railroad right of way; and

WHEREAS, Lot 6 of Tract 6022 has been designated as “ Recreation Open Space”; and

WHEREAS, the City Council provided direction to address the City’s need for additional sports fields to address the growing outdoor recreation needs of youth and help stem youth violence; and

WHEREAS, using this direction staff at the Recreation and Parks Department have sought grant funding, negotiated with property owners, and hired a consultant to create a conceptual design for such a complex; and

WHEREAS, City staff has determined the zone use of this property for Recreation Open Space is consistent with the General Plan and with the Blosser Southeast Area 5B Specific Plan; and

WHEREAS, the Planning Commission of the City of Santa Maria has approved the tentative map for the Acquistapace (Blosser Ranch), Tract 6022 subdivision on December 16, 2020; and

WHEREAS, the City Council of the City of Santa Maria approved the Final Map and Subdivision Improvement Agreement for the Acquist apace (Blosser Ranch), Tract 6022 on March 7, 2023; and

WHEREAS, the City of Santa Maria entered into a Memorandum of Understanding towards the purchase Lot 6, Tract 6022 with Blosser Fee Owner, LLC; and

WHEREAS, the City of Santa Maria desires to acquire this Property to develop a

21.13 acre gross multi-use sports park.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. The Mayor , or their designee, is hereby authorized to execute the purchase and sale agreement and complete the necessary steps for the purchase of the Property as necessary to finalize the sale of the Property; and

2. The City Council of the City of Santa Maria hereby authorizes the Chief Deputy City Clerk to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of the document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary; and

3. The sale of the Property serves the public interest by receipt of the property in exchange for Quimby Act/Subdivision Fees in the maximum amount of $3,242,172; and

4. The proposed purchase of the Property conforms to the City’s General Plan as part of the overall approval of the Blosser S outheast Area 5B Specific Plan as required by Government Code 65402; and

5. The purchase of the Property is exempt from CEQA as a purchase of property (“not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; there fore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required; and

6. Agrees to comply with all applicable federal, state , and local laws, ordinances, rules, regulations, and guidelines.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 19th day of March 2024.

///

///
ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Interim Department Director
_______________________________
Interim City Manager

FOR THE COUNCIL MEETING OF MARCH 19, 2024

COUNCIL AGENDA REPORT

TO: City Council

FROM: Interim City Manager Alex Posada

BY: Director of Public Works Brett Fulgoni

SUBJECT: Measure A Five -Year Local Program of Projects for Fiscal Year 2024/2025 Through 2028/2029

Description:

The City Council will consider approving the Measure A Five -Year Program of Projects for transportation and pedestrian enhancement projects within the City of Santa Maria.

RECOMMENDATION:

Adopt a Resolution approving the Me asure A Five -Year Local Program of Projects for fiscal years 2024/2025 through 2028/2029; and certifying that the City of Santa Maria will provide sufficient funding in the 2024/2025 budget to meet the Measure A Maintenance of Effort requirement.

BACKGROUND:

In November 2008, Santa Barbara County voters approved the reauthorization of Measure D, an extension of the existing half -cent sales tax for transportation purposes, known as Measure A. Over its 30 -year lifespan, Measure A will provide more than on e billion in local sales tax revenues for transportation projects in Santa Barbara County.

Specifically, it will provide approximately $455 million to Northern Santa Barbara County for high-priority transportation projects and programs to address the curre nt and future needs of local communities.

Measure A funds are essential for the current and future maintenance needs of the City’s roadways, transportation facilities, and overall infrastructure year after year.

DISCUSSION:

Section 18 of the Measure A ordinance requires each local jurisdiction to annually hold a public hearing to adopt a five-year Program of Projects (POP). This meeting serves that purpose. Once approved, all local POP’s are submitted to the Santa Barbara County Local Transportation Authority for approval.
2 The Five -Year Local POP (Attachment A) proposes projects that comply with the requirements of the Measure A ordinance. The Measure A project list for the current cycle allocates funds to local streets and transportation improvements.

Measure A requires the City to allocate 15 percent of its local share of Measure A funding to pedestrian and bicycle improvements, classified as “Alternate Transportation” Improvements. The Measure A program is divided into five-year segments with regard to Alternate Transportation, and the ordinance requires that the 15 percent requirement for Alternate Transportation expenditures be met completely over each five-year period.

The primary focus of the POP is the maintenance of the existing infrastructure within the City’s rights-of-way. Other transportation funding sources, such as Gas Tax, SB1, LSTP (Local Surface Transportation Program), Growth Mitigation, and other grant programs are available for capital expenditures through the normal budget process.

Maintenance of Effort
Maintenance of Effort (MOE) is a common requirement of special tax measures. MOE is a taxpayer safeguard used to assure that new special tax revenues are not used to supplant historical discretionary funding levels. The MOE requirement is meant to maintain existing funding levels so that the new tax revenues will improve public infrastructure or services above current levels.

The Measure A ordinance contains an MOE requirement that identifies the minimum amount of local discretionary funding for local streets and roads. The MOE requirements were established based on the City of Santa Maria discretionary spending reported during Year One, Fiscal Year 2010-11, of the Measure A Program. This amount has increased incrementally over the lifetime of the program. The MOE requirement for FY 2023/2024 is estimated to be $4,230,336.

The Resolution contains a certification required by the Measure A ordinance. The City is required to certify that the City budget includes an amount of local discretionary funding to comply with the MOE requirements. The proposed City of Santa Maria 2024-26 budget shall include sufficient discretionary funding to meet the estimated MOE requirement.

Alternative(s)
The recommended action is to approve the Resolution approving the five -year Measure A POP. The alternative to the recommended action would be for the City Council to direct staff to make changes to the POP and bring the item back to the City Council for approval.

This would result in a delay in submitting the approved POP to SBCAG, which could delay the City’s funding.

Fiscal Considerations
This action is expected to bring over $7.6 million to the City of Santa Maria in FY 2024/2025 and a projected total of $37.3 million over the next five years. Attachment A shows “Measure A Revenue Estimates from Santa Barbara County Association of 3 Government (SBCAG)” by year in the second row of the table under “Revenues.” This does not include carryovers from the fund balance. The City must adopt a Resolution approving the Measure A Five -Year Local POP and certify the MOE requirement to secure this funding.

Impact to the Community
The Measure A Local POP will have a beneficial impact on the community by directing available Measure A revenues to the maintenance of the City’s transportation infrastructure. This network of roadways, sidewalks, streetlights, traffic signals, drainage systems, and landscaping serves every resident of the community daily. The maintenance and operation of this system are of critical importance to nearly every aspect of the health of the community’s infrastructure.

ATTACHMENTS
A. Five-Year Measure A Program of Projects
B. SBCAG TTAC Staff Report

Local Street & Transportation Improvements
Project Descriptions
FY 2022/23
Actual
Expenditures
FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL
Revenues
Measure A Carry-Over 7,772,914$ 8,105,319$ 8,214,861$ 8,008,881$ 7,863,751$ $ 7, 772,914 Measure A Revenue Estimates from SBCAG 7,638,713$ 7,024,081$ 7,280,217$ 7,549,972$ 7,828,275$ $ 37, 321,258 Total 15,411,627$ 15,129,400$ 15,495,078$ 15,558,853$ 15,692,026$ 45,094,172$ Maintainance, Improvement or Construction of Roadways & Bridges Roadway Maintenance and improvements 4,793,657$ 4,349,275$ 4,128,000$ 4,567,500$ 4,636,013$ 4,707,667$ 22,388,454$ Landscaping Maintenance 70,000$ 77,000$ 84,700$ 93,170$ 106,487$ 431,357$

Traffic Safety
Signage replacements and improvements 425,706$ 438,477$ 403,399$ 419,535$ 436,316$ 453,769$ 2,151,497$

Pavement delineation 370,269$ 381,377$ 350,867$ 364,902$ 379,498$ 394,678$ 1,871,321$

Street lighting maintenance and improvements 359,117$ 369,891$ 340,299$ 353,911$ 368,068$ 382,790$ 1,814,959$

Street lighting upgrades - Underlit neighborhoods 17,298$ 300,000$ 330,000$ 363,000$ 399,300$ 439,230$ 1,831,530$

Traffic signal maintenance and improvements 244,156$ 251,481$ 231,362$ 240,617$ 250,241$ 260,251$ 1,233,952$

Highway Improvements
TOTAL 6,210,203$ 6,160,500$ 5,860,927$ 6,394,165$ 6,562,606$ 6,744,872$ 31,723,070$ Alternative Transportation Expenditures
Project Descriptions
FY 2022/23
Actual
Expenditures
FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL
Maintenance, Repair, Construction & Improvement of Bike & Ped Facilities, Safe Routes to School, & ADA Facilities 741,042$ 1,074,807$ 982,612$ 1,021,033$ 1,061,496$ 1,103,241$ 5,243,189$ City-wide Sidewalk Index -$
40,000$ 40,000$ 40,000$
40,000$ 40,000$ 200,000$

Programs, Education, & Incentives to Reduce Single Occupant Auto Trips or Transportation Demand $ - 31, 000$ 31,000$ 31,000$ 31,000$ 31,000$ 155,000$ TOTAL ALTERNATIVE TRANSPORTATION EXPENDITURES 741,042$ 1,145,807$ 1,053,612$ 1,092,033$ 1,132,496$ 1,174,241$ 5,598,189$ TOTAL EXPENDITURES 6,951,246$ 7,306,307$ 6,914,540$ 7,486,197$ 7,695,101$ 7,919,113$ 37,321,258$ Alternative Transportation Summary
TOTAL MEASURE A ALLOCATION (FY 2023/24 TO 2027/28) 37,321,258$

MINIMUM ALTERNATIVE PERCENTAGE PRESCRIBED BY INVESTMENT PLAN TO BE MET BY FY 2025/26 FOR FISCAL YEARS 2024/25 THROUGH 2028/29 15% TOTAL MEASURE A ALLOCATION TO ALTERNATIVE TRANSPORTATION 5,598,189$ PERCENTAGE OF MEASURE A ALLOCATION TO ALTERNATIVE TRANSPORTATION 15% Measure A Revenues
City of Santa Maria
Five-Year Measure A Program of Projects (FYs 24/25 to 28/29) Measure A Local Street and Transportation Improvements Submittal Form Measure A Revenues

ATTACHMENT A

STAFF REPORT
Technical Transportation Advisory Committee (TTAC)
MEETING DATE: December 7, 2023
STAFF CONTACT: Jacky Mata, SBCAG
SUBJECT: FINAL MEASURE A REVENUE ESTIMATES FOR FISCAL YEARS 24/25 TO 28/29
ATTACHMENTS: Attachment A - Measure D and Measure A Revenues Attachment B - Development Schedule
Attachment C Measure A Local POP Submittal Form - FY 23-24 Attachment D Final FY 24-25 Tables 1-5
RECOMMENDATION:

Recommend approval to the SBCAG Board on the final Measure A revenue estimates for Fiscal Years 2024/25 to 2028/29.

DISCUSSION:

As the Local Transportation Authority, SBCAG is responsible for allocating Measure A transportation sales tax revenues according to the voter-approved ordinance and investment plan. Integral to this responsibility SBCAG staff prepares five-year revenue estimates that are used annually to develop the Measure A Program of Projects (POP) which will be adopted by the SBCAG Board in June 2024.

The attached tables provide draft projected revenues for FY 2024/25 to FY 2028/29.

The revenue estimates reflect the repayment of a $75 million TIFIA loan to accommodate the construction of the U.S. 101 HOV Phase 4 project. This TIFIA loan issuance will impact the overall program with debt payments that began in FY 2022/23.

The estimates are being provided to allow local agencies to begin to prepare their Measure A Programs of Projects. SBCAG is responsible for preparing the Authority Program of Projects. The Local Program of Projects will be due to SBCAG by March 29, 2024. The draft Measure A Program of Projects will be presented for review in May and with adoption by the Board in June.

Estimates of Measure A allocations for the five-year period are presented in the attached tables as follows in Attachment D:

Table 1 – Five-Year Measure A Revenue Estimate
The overall Measure A program revenue estimate for the five-year period is presented in Table 1. The projection for FY 24/25 is 2.4% higher compared to FY 23/24.

The 5-year revenue projections being presented take into consideration the following factors:
 FY 24/25 – A reduction in interest rates is anticipated to occur within the fiscal year as the historic increases by the Federal Reserve are expected to bring inflation back to a manageable rate. Housing is expected to continue to be a concern as home prices continue to rise, particularly in California, but supply remains below historic levels. Geopolitics has the potential

ATTACHMENT B
to put a strain on the economy as supply chain issues may potentially be impacted. Overall, growth is expected to be low, but favorable.
 FY 25/26 – Movement towards what would be described as normal economic growth is expected as geopolitical issues are resolved and supply chain issues, both national and international, are back on track. With the projected reduction in interest rates, homebuyers and sellers will help with both general consumer goods and the building & construction sectors as purchases are made on higher priced items. New and used vehicle sales will benefit from lower interest rates.
 FY 26/27 – Continued growth in areas such as autos & transportation are expected to grow as consumers turnover older vehicles. Financing will still be an issue due to the continued higher prices of vehicles, as average monthly payments reach closer to $1,000/month. Consumers are still looking for life experiences, such that restaurants and other leisure activities continue to show growth.
 FY 27/28 - Moving into a Presidential election year may cause a slight slowing in the economy as the nation waits for the outcome. However, it is expected that the economy will see a 3.0% growth as consumers continue to appreciate the lower interest rates from previous years, which in turn help the growth in the economy.
 FY 28/29 and the years beyond, represent a normal business cycle, but at some point, will include a recession, or possible slowdown in the economy. Should inflation become a problem the Federal Reserve has shown it is willing to step in and assist in reining it in. For California, a mandate for conversion to electric vehicles by 2035 may begin to cause concerns with the electrical infrastructure for most areas of the state, as well as a decision on how to tax vehicles in order to have funding for road maintenance and repairs, as currently, electricity for charging vehicles is not taxed.

Table 1 shows annual deductions for CDTFA administration costs, which are a maximum 1.15%. In addition, the table includes a deduction of gross revenues of 1.0% for SBCAG administrative costs.

As discussed by TTAC, SBCAG has been approved for a Federal TIFIA Loan by the Build America Bureau to provide financing for SBCAG’s Measure A match for SB1 Cycle 1 award for construction of the U.S. 101 HOV project. This will be required to continue annual apportionments of Local Street & Transportation Improvement and transit funding while constructing segment(s) of the HOV project.

Debt service estimates have been incorporated in Table 1 which assumes a TIFIA loan of $75 million beginning in FY 22/23 and drawn down through FY 24/25. The borrowing amount and debt service estimates are the most conservative approach at this time with the possibility of being revised slightly downward.

This table also includes deductions off the top for consultant assistance, for ongoing consultation with the financial advisor, and for TIFIA reporting assistance.

New for the Measure A Revenue Estimates, Staff proposes including a deduction for the Replica data service. This table includes the proposed deduction off the top for Replica. In April 2023, SBCAG entered into an agreement with Replica for a one-year subscription accessible by SBCAG and all jurisdictions in Santa Barbara County. SBCAG funded the initial subscription with Sustainable Communities Planning Grant – Formula funds. As requirements related to the use of that fund source exist, it cannot be used for an ongoing subscription.

ATTACHMENT B
Replica is a planning tool that benefits planning projects, public outreach, application development, and numerous other tasks. Following the September committee meetings, Jessica Grant suggested asking TTAC members to consider funding a regionwide and ongoing subscription with off the top Measure A funds. Doing so would enable the region to retain access to Replica through the expiration of Measure A. To extend the current agreement, Replica offered a non-escalating fee of $96,000 per year through 2040 to cover all agencies within the region. (For reference, the cost would be approximately $500,000 per year if each agency subscribed individually).

Finally, the table assumes that there will be interest earned on the measure fund balance that will be allocated along with the sales tax revenues.

Table 2A – North County and South Coast Annual Allocation Table 2A lists the allocations to be made annually over the five-year period to programs in the North County and South Coast sub-programs. The investment plan specifies that the North County and South Coast programs each receive 43.3% of the total measure revenues over 30 years. But the amount of funding that projects or programs within the sub-programs are to receive are reflected in the investment plan as estimated revenues (in $) over 30 years, not as a percentage. So, dollar amounts have been used to derive a percentage of the sub-program revenue that each will receive annually. The percentages reflected are the same as those from last year.

Table 2B – Highway 101 HOV Widening & Other Named Projects The estimated revenues available for the South Coast Highway 101 HOV project and other “named” projects are reflected in Table 2B. The estimate is derived by deducting the North County and South Coast annual allocation total from the net revenues available for allocation in Table 1.

Table 3 – Local Street & Transportation Improvement Revenues Table 3 derives the estimated North County and South Coast Local Street and Transportation Improvement revenues by jurisdiction within sub-regions using the LSTI estimate from Table 2A and population estimates from January 2023. The North County and South Coast unincorporated population split is based on the 2020 census. The investment plan specifies that on the South Coast, each local agency will provide SBMTD with a percentage of their gross LTSI allocation to be used for transit operations. These estimates are reflected in Table 3. The funds will be distributed directly to SBMTD per the investment plan. The table also reflects the minimum percentage of LTSI funding and the corresponding dollar amount that each local agency must expend on alternative transportation by the end of the five-year period as required by the Investment Plan.

Table 4 – Specialized Transit for Elderly & Disabled
Table 4 reflects the estimated revenues for Easy Lift, the sole specialized transit service provider on the South Coast, and a revenue estimate for the North County based on population and paratransit ridership. Per the investment plan, transit operators and Consolidated Transportation Service Agencies are eligible recipients of this funding, which is intended to reduce fares charged to the elderly and disabled by funding operating expenses of specialized services. Half of the annual North County Specialized Transit funding is allocated based on population, with a $5,000 base allocation to Guadalupe and SMOOTH, and the other half is allocated based on specialized transit ridership figures. Table 4 reflects population figures from the Department of Finance for January 2023 and specialized transit ridership figures from FY 22/23. Ridership figures are based on Fiscal Year 22/23 Specialized Transit figures provided by Transit Operators.

ATTACHMENT B
Table 5 – Local & Authority Program of Projects
This table is a summary of revenue estimates reflected in Tables 1-4, organized by the two Programs of Projects, a Local program, and an Authority program, that the ordinance requires be annually adopted by SBCAG. It includes a column showing which agencies are responsible for preparing the various components of the two POPs.

Program of Projects Submittal Form
SBCAG and local agency recipients of Measure A funds are required to annually adopt programs of projects showing how Measure A funds will be spent over the five-year period. The current Local Program of Projects Submittal form is included as Attachment C. It is based on Appendix B1 (Local Street and Transportation Improvements Funding Eligible Uses) and Appendix B2 (eligible Local Street and Transportation Improvements Funding Alternative Transportation Expenditures) of the Measure A Investment Plan.

The submittal form also includes a designated area for agencies to identify how they are meeting their prescribed alternative transportation expenditure percentages. These percentages for local alternative expenditures need to be met by the end of the second quinquennium of the program (FY 24/25). One column is to be used exclusively by the County to identify expenditures on Class 2 bikeway maintenance that may be counted towards its alternative transportation percentage. The County may count 50% of such expenditures towards its percentages, but these expenditures may not exceed 50% of the prescribed percentage in the five-year period.

Schedule
A summary schedule of the Measure A POP process is attached to this report (Attachment B). The local Programs of Projects will be due to SBCAG by March 29, 2024. SBCAG staff will then develop the Program of Projects for review in May and adoption in June.

ATTACHMENT B
Attachment A
Measure D and Measure A Revenues
Fiscal Years 2005/06 to 2024/25
* P
rojected through end of Fiscal Year (Provided by HdL)
** Projected
Program Fiscal Year Revenues Growth Rate
Measure D
2005-06 $31,009,268
2006-07 $32,760,075 5.6%
2007-08 $32,573,516 -0.6%
2008-09 $29,769,950 -8.6%
2009-10 $27,047,320 -9.1%
Measure A
2010-11 $29,175,863 7.9%
2011-12 $32,084,170 10.0%
2012-13 $33,020,369 2.9%
2013-14 $34,817,454 5.4%
2014-15 $36,274,326 4.2%
2015-16 $36,952,647 1.9%
2016-17 $37,497,469 1.5%
2017-18 $37,255,453 -0.6%
2018-19 $42,398,043 13.8%
2019-20 $40,372,225 -4.8%
2020-21 $46,257,033 14.6%
2021-22 $53,769,084 16.2%
2022-23 $54,916,379 2.1%
2023-24* $54,626,379 -0.5%
2024-25** $55,927,379 2.4%

ATTACHMENT B
Attachment B
Measure A Program of Projects
Development Schedule
FY 2024/25 Cycle
Action Date
Review of Draft Revenue Estimates
SBCAG provides the Technical Transportation Advisory
Committee with a draft five-year estimate of the Measure A revenues for comment.

November 2
SBCAG approves Measure A Revenue Estimates for FY 24/25 December 14 POP Submittal Date
Local agencies and SBMTD Service Agencies submit a five-year program of projects to SBCAG. The project listing should be prepared and adopted consistent with the Measure A Ordinance.

March 29, 2024
Review of POPs
SBCAG staff reviews local programs of projects and seeks modifications as necessary. SBCAG staff also develops the Draft Measure A Program of Projects for review in May.

April 2024
Draft Measure A POP is presented to TTAC and SBCAG Board May 2024 SBCAG Board Approval of POP
SBCAG Board approves Local and Authority Program of Projects and allocation of Measure A funds for FY 24/25.

June 20, 2024

ATTACHMENT B
Local Street & Transportation Improvements Total Project Cost
For Santa Barbara County
Only
Project Descriptions
FY 22/23
Actual
Expenditures
Carry-over
from FY
22/23
Carry-over
from FY
23/24
FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL Measure A Revenues Local State Federal TOTAL Non-Measure A
Revenues
Class 2 Bikeway Maintenance
Expenditure - Count as
Alternative Transportation
Expenditure
Maintainance, Improvement or Construction of Roadways & Bridges $0 $0 $0
$0 $0 $0
$0 $0 $0
Safety Improvements
$0 $0 $0
$0 $0 $0
$0 $0 $0
Urban Forestry Street Tree Program
$0 $0 $0
$0 $0 $0
$0 $0 $0
Storm Damage Repair to Transportation Facilities
$0 $0 $0
$0 $0 $0
$0 $0 $0
Roadway Drainage Facilities
$0 $0 $0
$0 $0 $0
$0 $0 $0
Traffic Signal Coordination, Intersection Channelization $0 $0 $0
$0 $0 $0
$0 $0 $0
Traffic Management
$0 $0 $0
$0 $0 $0
$0 $0 $0
Landscaping Maintenance
$0 $0 $0
$0 $0 $0
$0 $0 $0
Highway Improvements
$0 $0 $0
$0 $0 $0
$0 $0 $0
Matching Funds for State and Regional Programs and Projects $0 $0 $0
$0 $0 $0
$0 $0 $0
TOTAL 0 $ 0$ 0$ 0$ 0$ 0$ 0 $ 0 $ 0$ 0$ 0 $ 0 $ 0 $0
Alternative Transportation Expenditures Total Project
Cost
Project Descriptions
FY 22/23
Actual
Expenditures
Carry-over
from FY
22/23
Carry-over
from FY
23/24
FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL Measure A Revenues Local State Federal TOTAL Non-Measure A
Revenues
Maintenance, Repair, Construction & Improvement of Bike & Ped Facilities $0 $0 $0 $0
$0 $0 $0
$0 $0 $0
Safe Routes to School Improvements
$0 $0 $0
$0 $0 $0
$0 $0 $0
Reduced Transit Fares for Seniors & Disabled
$0 $0 $0
$0 $0 $0
$0 $0 $0
Bus and Rail Transit Services and Facilties
$0 $0 $0
$0 $0 $0
$0 $0 $0
Programs, Education, & Incentives to Reduce Single Occupant Auto Trips or Transportation Demand
$0 $0 $0
$0 $0 $0
$0 $0 $0
TOTAL ALTERNATIVE TRANSPORTATION EXPENDITURES 0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES 0 $ 0$ 0$ 0$ 0$ 0$ 0 $ 0 $ 0$ 0$ 0 $ 0 $ 0 Alternative Transportation Summary
TOTAL MEASURE A ALLOCATION (FY 2023/24 TO 2027/28) $0

MINIMUM ALTERNATIVE PERCENTAGE PRESCRIBED BY INVESTMENT PLAN TO BE MET BY FY 2024/25 FOR FISCAL YEARS 2020/21 THROUGH 2024/25 Enter
Percentage
TOTAL MEASURE A ALLOCATION TO ALTERNATIVE TRANSPORTATION $0 $0 PERCENTAGE OF MEASURE A ALLOCATION TO ALTERNATIVE TRANSPORTATION Enter Percentage
Measure A Revenues Non-Measure A Revenues
Non-Measure A Revenues
City/County of ______________
Measure A Local Street and Transportation Improvements Submittal Form Five Year Measure A Program of Projects (FYs 24/25 to 28/29) (Figures in $1000's)
Measure A Revenues

ATTACHMENT B
FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL
Total Receipts1 $55,927,379 $57,518,379 $59,254,379 $61,080,379 $62,970,687 $296,751,203 Board of Equalization Costs ($645,465) ($663,761) ($683,725) ($704,724) ($726,463) ($3,424,139) Administrative Costs (up to 1.15% on receipts)
Administration: SBCAG Staff + Indirect Costs ($561,274) ($577,184) ($594,544) ($612,804) ($631,707) ($2,977,512) (no more than 1% of receipts for administration and
audits)
Measure A TIFIA Reporting, HdL revenue
analysis 3 ($60,000) ($60,000) ($60,000) ($60,000) ($60,000) ($300,000) Replica Annual Subscription 4 ($96,000) ($96,000) ($96,000) ($96,000) ($96,000) ($480,000) Debt Service on TIFIA Loan 2 ($2,836,542) ($8,476,292) ($8,473,474) ($8,468,250) ($8,469,173) ($36,723,731) Interest on Measure A Fund Balance $200,000 $200,000 $200,000 $200,000 $200,000 $1,000,000 Based on historical data
Available for Allocation $51,928,098 $47,845,142 $49,546,636 $51,338,601 $53,187,344 $253,845,821

1. Growth rate figures and revenue estimate for FY 23/24 provided by SBCAG's revenue analysis consultant, HdL.

2. Debt service estimates assume TIFIA loan of $75 million (drawn down through FY 24/25) at 4.02% assumed rate.

3. This also includes $50,000 for TIFIA reporting assistance and $10,000 for revenue monitoring services

4. Includes $96,000 annually for Replica
Table 1 - Total Receipts and Available Allocations
Final Five Year Measure A Revenue Estimate
FY 2024/25 to FY 2028/29
11/28/2023

ATTACHMENT B
Investment Plan
Total % FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL North County Annual Allocations $455,000,000 43.3%
Local Street and Transportation Improvements $341,000,000 74.9% $16,851,296 $15,526,327 $16,078,482 $16,659,997 $17,259,936 $82,376,037 Specialized Transit for Elderly and Disabled $4,500,000 1.0% $222,378 $204,893 $212,179 $219,853 $227,770 $1,087,074 Safe Routes to School, Bicycle & Pedestrian Program $3,000,000 0.7% $148,252 $136,595 $141,453 $146,569 $151,847 $724,716 Carpool and Vanpool Program $2,000,000 0.4% $98,835 $91,064 $94,302 $97,713 $101,231 $483,144 Interregional Transit Program $22,500,000 4.9% $1,111,889 $1,024,464 $1,060,897 $1,099,267 $1,138,852 $5,435,369 Subtotal $18,432,649 $16,983,343 $17,587,313 $18,223,398 $18,879,637 $90,106,340 South County Annual Allocations $455,000,000 43.3%
Local Street and Transportation Improvements $330,650,000 72.7% $16,339,827 $15,055,073 $15,590,470 $16,154,334 $16,736,064 $79,875,768 Safe Routes to School Program $13,000,000 2.9% $642,425 $591,913 $612,963 $635,132 $658,003 $3,140,435 Bicycle & Pedestrian Program $13,000,000 2.9% $642,425 $591,913 $612,963 $635,132 $658,003 $3,140,435 South Coast Transit Capital Program $27,000,000 5.9% $1,334,267 $1,229,357 $1,273,076 $1,319,120 $1,366,623 $6,522,443 Interregional Transit Program $25,350,000 5.6% $1,252,728 $1,154,230 $1,195,277 $1,238,507 $1,283,107 $6,123,849 Specialized Transit for Elderly and Disabled $6,000,000 1.3% $296,504 $273,191 $282,906 $293,138 $303,694 $1,449,432 Carpool and Vanpool Program $7,000,000 1.5% $345,921 $318,722 $330,057 $341,994 $354,310 $1,691,004 Commuter/Passenger Rail $25,000,000 5.5% $1,235,432 $1,138,294 $1,178,774 $1,221,407 $1,265,391 $6,039,299 Subtotal $22,089,528 $20,352,692 $21,076,486 $21,838,764 $22,625,195 $107,982,665 $40,522,177 $37,336,035 $38,663,799 $40,062,162 $41,504,832 $198,089,005 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL
$11,405,921 $10,509,107 $10,882,837 $11,276,439 $11,682,512 $55,756,816Highway 101 HOV Widening & Other Named Projects Total of North & South Annual Allocations
Table 2A - North County and South Coast Annual Allocations Five Year Measure A Revenue Estimate
FY 2024/25 to FY 2028/29
Table 2B - Highway 101 HOV Widening & Other Named Projects Five Year Measure A Revenue Estimate
FY 2024/25 to FY 2028/29
11/28/2023

ATTACHMENT B
Jurisdiction Population Population % FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL Alternative
Mode
Percentage
Total North County Estimates 236,001 100.000% $16,851,296 $15,526,327 $16,078,482 $16,659,997 $17,259,936 $82,376,037 Buellton 4,944 2.095% $440,450 $412,693 $424,260 $436,442 $449,010 $2,162,854 5% Guadalupe 8,515 3.608% $686,353 $638,547 $658,469 $679,451 $701,097 $3,363,917 5% Lompoc 43,493 18.429% $3,094,978 $2,850,798 $2,952,555 $3,059,724 $3,170,287 $15,128,342 15% Santa Maria 109,477 46.388% $7,638,713 $7,024,081 $7,280,217 $7,549,972 $7,828,275 $37,321,259 15% Solvang 5,669 2.402% $490,374 $458,547 $471,810 $485,779 $500,190 $2,406,699 15% Co. of Santa Barbara (unincorporated North County) 63,903 27.077% $4,500,428 $4,141,661 $4,291,170 $4,448,629 $4,611,077 $21,992,966 10% Total South Coast Estimates 204,556 100.000% $16,339,827 $15,055,073 $15,590,470 $16,154,334 $16,736,064 $79,875,768 Carpinteria 12,711 6.214% $1,090,492 $1,010,658 $1,043,927 $1,078,965 $1,115,114 $5,339,156 % of Gross Allocation for SC Transit Operations 7.96% $86,803 $80,448 $83,097 $85,886 $88,763 $424,997 Carpinteria $1,003,689 $930,210 $960,831 $993,080 $1,026,351 $4,914,159 10% Goleta 32,442 15.860% $2,628,010 $2,424,252 $2,509,164 $2,598,591 $2,690,852 $12,850,870 % of Gross Allocation for SC Transit Operations 13.18% $346,372 $319,516 $330,708 $342,494 $354,654 $1,693,745 Goleta $2,281,638 $2,104,735 $2,178,456 $2,256,097 $2,336,198 $11,157,125 10% Santa Barbara City 85,418 41.758% $6,756,111 $6,219,627 $6,443,197 $6,678,654 $6,921,571 $33,019,160 % of Gross Allocation for SC Transit Operations 26.05% $1,759,967 $1,620,213 $1,678,453 $1,739,789 $1,803,069 $8,601,491 Santa Barbara City $4,996,144 $4,599,414 $4,764,744 $4,938,864 $5,118,502 $24,417,669 10% Co. of Santa Barbara (unincorporated South Coast) 73,985 36.169% $5,865,214 $5,400,536 $5,594,182 $5,798,123 $6,008,527 $28,666,582 % of Gross Allocation for SC Transit Operations 11.12% $652,212 $600,540 $622,073 $644,751 $668,148 $3,187,724 Co. of Santa Barbara (unincorporated South Coast) $5,213,002 $4,799,997 $4,972,109 $5,153,372 $5,340,379 $25,478,858 10% South Coast Transit Operations Program TOTAL $2,845,354 $2,620,717 $2,714,330 $2,812,921 $2,914,635 $13,907,956 Population estimates reflect California Department of Finance (DOF) figures for January 2023. https://dof.ca.gov/forecasting/de mographics/estimates-e1/ North/South unincorporated split is based on 2020 US Census, 2020 American Community Survey, 5 year estimates All local jurisdictions receive a $100,000 base allocation Alternative Mode Percentages per the Measure A Investment Plan Table 3 - Local Agency Apportionments
Five Year Measure A Revenue Estimate
FY 2024/25 to FY 2028/29
11/28/2023

ATTACHMENT B
FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 TOTAL
North County
Population 236,001 100.000000% $111,189 $102, 446 $106,090 $109,927 $113,885 $543,537 Ridership* 84,818 100.000000% $111,189 $102, 446 $106,090 $109,927 $113,885 $543,537 Lompoc Valley
City of Lompoc Transit (COLT)
Population 60,371 25.580911% $28,443 $26,207 $27,139 $28,120 $29,133 $139,042 Ridership 9,217 10.866797% $12,083 $11,133 $11,529 $11,946 $12,376 $59,065 Lompoc Valley Total $40,526 $37,339 $38,667 $40,066 $41,509 $198,107 Santa Maria Valley 153,474 65.031245% $72,308 $66,622 $68,991 $71,487 $74,061 $353,469 Guadalupe Transit
Population $5,000 $5,000 $5,000 $5,000 $5,000 $25,000
Ridership 1,295 1.526799% $1,698 $1,564 $1,620 $1,678 $1,739 $8,299 Guadalupe Total $6,698 $6,564 $6,620 $6,678 $6,739 $33,299 Santa Maria Regional Transit (SMRT)
Population $62,308 $56,622 $58,991 $61,487 $64,061 $303,469 Ridership 18,227 21.489542% $23, 894 $22,015 $22,798 $23,623 $24,473 $116,804 SMRT Total $86,202 $78,637 $81,790 $85,109 $88,534 $420,272 Santa Maria Organization of Transportation Helpers (SMOOTH) $5,000 $5,000 $5,000 $5,000 $5,000 $25,000
Ridership 53,673 63.280200% $70, 361 $64,828 $67,134 $69,562 $72,067 $343,951 SMOOTH Total $75,361 $69,828 $72,134 $74,562 $77,067 $368,951 Santa Ynez Valley
Santa Ynez Valley Transit (SYVT)
Population 22,155 9.387844% $10,438 $9,618 $9,960 $10,320 $10,691 $51,026 Ridership 2,406 2.836662% $3,154 $2,906 $3,009 $3,118 $3,231 $15,418 Santa Ynez Valley Total $13,592 $12,524 $12,969 $13,438 $13,922 $66,445 NORTH COUNTY TOTAL $222,378 $204,893 $212,179 $219,853 $227,770 $1,087,074 South Coast
Easy Lift $296,504 $273,191 $282,906 $293,138 $303,694 $1,449,432 SOUTH COAST TOTAL $296,504 $273,191 $282,906 $293, 138 $303,694 $1,449,432 Notes:
- Population estimates reflect California Department of Finance (DOF) figures for January 2023. - Ridership figures are based on Fiscal Year 22/23 Specialized Transit figures provided by Transit Operators.

Table 4 - Specialized Transit for Elderly & Disabled
5-Year Measure A Revenue Estimate
FY 2024/25 to FY 2028/29
11/28/2023

ATTACHMENT B
Local Street & Transportation Improvements FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 POP Prepared by Buellton $440,450 $412,693 $424,260 $436,442 $449,010 City Guadalupe $686,353 $638,547 $658,469 $679,451 $701,097 City Lompoc $3,094,978 $2,850,798 $2,952,555 $3,059,724 $3,170,287 City Santa Maria $7,638,713 $7,024,081 $7,280,217 $7,549,972 $7,828,275 City Solvang $490,374 $458,547 $471,810 $485,779 $500,190 City Co. of Santa Barbara (North County) $4,500,428 $4,141,661 $4,291,170 $4,448,629 $4,611,077 County Co. of Santa Barbara (South County) $5,213,002 $4,799,997 $4,972,109 $5,153,372 $5,340,379 County Carpinteria $1,003,689 $930,210 $960,831 $993,080 $1,026,351 City Goleta $2,281,638 $2,104,735 $2,178,456 $2,256,097 $2,336,198 City Santa Barbara City $4,996,144 $4,599,414 $4,764,744 $4,938,864 $5,118,502 City Subtotal $30,345,769 $27,960,683 $28,954,622 $30,001,410 $31,081,365 North County FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 POP Prepared by Specialized Transit for Elderly and Disabled
- City of Lompoc Transit (COLT) $40,526 $37,339 $38,667 $40,066 $41,509 Lompoc - Guadalupe Transit $6,698 $6,564 $6,620 $6,678 $6,739 Guadalupe - Santa Maria Area Transit (SMAT) $86,202 $78,637 $81,790 $85,109 $88,534 Santa Maria - Sant a Maria Organization of Transp. Helpers $75,361 $69,828 $72,134 $74,562 $77,067 SMOOTH - Santa Ynez Valley Transit (SYVT) $13,592 $12,524 $12,969 $13,438 $13,922 Solvang Safe Routes to School, Bike & Ped Program $148,252 $136,595 $141,453 $146,569 $151,847 SBCAG Carpool and Vanpool Program $98,835 $91,064 $94,302 $97,713 $101,231 SBCAG Traffic Solutions Interregional Transit Program $1,111,889 $1,024,464 $1,060,897 $1,099,267 $1,138,852 SBCAG South Coast
Specialized Transit for Elderly and Disabled
- Easy Lift $296,504 $273,191 $282,906 $293,138 $303,694 Easy Lift South Coast Transit Operations $2,845,354 $2,620,717 $2,714,330 $2,812,921 $2,914,635 SBMTD South Coast Transit Capital $1,334,267 $1,229,357 $1,273,076 $1,319,120 $1,366,623 SBMTD Safe Routes to School Program $642,425 $591,913 $612,963 $635,132 $658,003 SBCAG Bicycle and Pedestrian Program $642,425 $591,913 $612,963 $635,132 $658,003 SBCAG Interregional Transit Program $1,252,728 $1,154,230 $1,195,277 $1,238,507 $1,283,107 SBCAG Carpool and Vanpool Program $345,921 $318,722 $330,057 $341,994 $354,310 SBCAG Traffic Solutions Commuter/Passenger Rail $1,235,432 $1,138,294 $1,178,774 $1,221,407 $1,265,391 SBCAG Named Projects
Hwy 101 HOV Widening & Other Named Projects $11,405,921 $10,509,107 $10,882,837 $11,276,439 $11,682,512 SBCAG Subtotal $21,582,330 $19,884,459 $20,592,014 $21,337,191 $22,105,979 TOTAL $51,928,098 $47,845,142 $49,546,636 $51,338,601 $53,187,344 Table 5
Five Year Measure A Revenue Estimate
Local & Authority Program of Projects
FY 2024/25 to FY 2028/29
Authority Program of Projects
Local Program of Projects
11/28/2023

ATTACHMENT B
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA, APPROVING THE MEASURE A FIVE-YEAR
LOCAL PROGRAM OF PROJECTS FOR FISCAL YEARS 2024/2025
THROUGH 2028/2029; AND CERTIFYING THAT THE CITY OF SANTA MARIA WILL PROVIDE SUFFICIENT FUNDING IN THE 2024/2025

BUDGET TO MEET THE MEASURE A MAINTENANCE OF EFFORT

REQUIREMENT

WHEREAS, on November 4, 2008, the voters of Santa Barbara County approved Ordinance No. 5, the Road Repair, Traffic R elief, and Transportation Safety Measure , known as Measure A; and

WHEREAS, the City of Santa Maria held a public hearing per Section 18 of the Ordinance; and

WHEREAS, the Ordinance provides that the Santa Barbara County Local Transportation Authority shall annually approve a Program of Projects (POP) submitted by local jurisdictions identifying those transportation projects eligible to use Measure A funds during the succeeding five-year period; and

WHEREAS, the City of Santa Maria was provided with an es timate of annual Measure A local revenues for 2024/2025 through 2028/2029 to develop a local POP.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. The City Council approves the Five -Year POP to be funded in part with Measure A revenues; and

2. The City of Santa Maria certifies that it will include in its budget an amount of local discretionary funding for local streets and roads sufficient to comply with Maintenance of Effort requirements contained in Section 27 of the Ordinance; and

3. The City of Santa Maria has complied with all other applicable provisions and requirements of the Ordinance; and

4. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

///

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 19th day of March 2024.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:

_______________________________
Department Director
_______________________________
Interim City Manager

FOR THE COUNCIL MEETING OF MARCH 19, 2024

COUNCIL AGENDA REPORT

TO: City Council

FROM: Interim City Manager Alex Posada

BY: Interim Assistant City Manager / Director of Community Development Chuen Wu

SUBJECT: Zoning Text Amendments for Time Extensions and Permit Revocations, Title 12 of the City of Santa Maria Municipal Code

Description:

The City Council will consider approving Zoning Text Amendments (Z2024 -0001) to amend Chapter 12 -35, Article 5, Section 12 -35.501, "Reconsideration of Discretionary Permits,” and add a new Section 12-35.504, “Permit Revocation,” to Title 12 – Zoning, of the City of Santa Maria Municipal Code.

Environmental Notice: The item is e xempt from the requirements of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15378(b)(5).

RECOMMENDATION:

Introduce an Ordinance for the first reading and continue to a future meeting for the second reading and adoption, amendments to Chapter 12 -35, Article 5, Section 12 -

35.501, “Reconsideration of Discretionary Permits, ” and addition of a new Section 12 -

35.504, “Permit Revocation,” to Title 12 – Zoning of the City of Santa Maria Municipal Code.

BACKGROUND:

The proposed text Amendments include revisions to Title 12, Chapter 12 -35 addressing the Reconsideration of Discretionary permits to clarify the time limits for approved permits, the process for obtaining a time extension for approved permits, and permit revocation.

Planning Commission Review
The Planning Commission reviewed the proposed text amendments at the November 1, 2023, public hearing. The Planning Commission continued the item to a future hearing date and requested that the item be reviewed at a study session prior to the next hearing.

A study session was held on December 7, 2023, where staff clarified the Commissioner’s questions. On January 17, 2024, the Planning Commission reviewed the item at a noticed public hearing and recommended approval of the amendments to the City Council.

2 DISCUSSION:

The proposed amendments to Chapter 12 -35, Section 12 -35.501 (Reconsideration of Discretionary Permits) will provide a more efficient and streamlined process to establish expiration dates and time extensions for Planned Development Permits and Conditional Use Permits. The amended Section, “Permit Expiration and Time Extensions”, clarifies that expiration dates of Planned Development Permits and Conditional Use Permits would be three years from the permit’s effective date. Additional language has been added to clarify when these permits would be deemed established, and the process for filing for a time extension. Regarding time extensions, the original decision -maker on the project may grant an extension of up to two years if they find that there has been adequate due diligence to implement and complete the permit, or that there are significant economic factors that justify additional time. There would be no limit to the number of time extensions that may be approved provided that the required findings are made, compared to the existing language that only allows for two extensions of two years each, for a maximum of seven years on the life of a planning permit.

A new section, 12-35.504 “Permit Revocation ,” is proposed to be added to specify the grounds for revocation of a Planned Development Permit or Conditional Use Permit.

Permits may be revoked if such appro val was based on the following: 1) inaccurate or misleading information; 2) one or more of the conditions upon which such approval was granted or extended have been violated; 3) the permit included a specific timeline that has not been complied with or phasing that has not occurred within the time provided, or 4) the permit involved a conditional use that has been abandoned. A public hearing is required by the decision -maker of the permit before any action on revocation. If the revocation of any permit is ordered, the decision-making body may provide a reasonable period of time to amortize any lawful existing uses on the site. The action regarding revocation may be appealed as set forth in Section 12-35.401 of Title 12.

Environmental Review
The Amendments to Chapter 12 -35, Article 5, Section 12 -35.501 and the addition of Section 12-35.504 have been reviewed for compliance with CEQA, the CEQA guidelines, and the City’s environmental procedures, and has been found not to be a project subject to CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment (CEQA Guideline Section 15378(b)(5)).

Fiscal Considerations
The property owner/applicant will be responsible for paying the application fee for a time extension, which is currently $2,090 for administrative time extensions, and $6,900 for time extensions that are subject to Planning Commission and City Council review. The 3 remaining text amendments regarding permit revocation establish processes within the Code and would not result in additional fees.

Impact to the Community
The proposed amendments will provide an efficient and streamlined process to establish expiration dates and time extensions for Planned Development Permits and Conditional Use Permits. The amendments will also provide updated regulations and processes for when a permit may be revoked.

ATTACHMENTS

A: Planning Commission Resolution

ATTACHMENT A

ORDINANCE NO. 20__ -

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA, CALIFORNIA, AMENDING TITLE 12, CHAPTER 12-35, ARTICLE 5, SECTION 12-35.501 OF THE SANTA MARIA MUNICIPAL CODE, REPLACING

RECONSIDERATION OF DISCRETIONARY PERMITS WITH PERMIT EXPIRATION AND TIME EXTENSIONS AND ADDING A NEW SECTION 12-35.504 REGARDING

PERMIT REVOCATION

WHEREAS, the City’s Zoning Ordinance classifies and regulates the uses of land, buildings and structures within the City in accordance with the City’s General Plan; and

WHEREAS, the provisions of the City’s Zoning Ordinance are necessary to ensure orderly and beneficial development of the City; and

WHEREAS, the City wishes to replace Section 12 -35.501 entitled “Reconsideration of Discretionary Permits” with a more efficient and streamlined process establishing permit expirations and time extensions; and

WHEREAS, the City wishes to add Section 12-35.504, setting forth a revised procedure for the revocation of discretionary permits; and

WHEREAS, the proposed Amendments are consistent with the City of Santa Maria General Plan; and

WHEREAS, on November 1, 2023, the Planning Commission conducted a noticed public hearing and voted to continue the item to a future public hearing with direction to staff to conduct a study session with the Planning Commission prior to the next hearing; and

WHEREAS, on December 7, 2023, the Planning Commission conducted a study session on the proposed amendments; and

WHEREAS, on January 17, 2024, the Planning Commission conducted a noticed public hearing and voted to recommend that the City Council adopt the subject Amendments; and

WHEREAS, on March 19, 202 4, the City Council conducted a noticed public hearing.

NOW, THEREFORE, IT IS HEREBY ORDAINED by the City Council of the City of Santa Maria, State of California, as follows:

SECTION 1. Section 12-35.501, of Article 5, of Chapter 12 -35 of Title 12 of the Santa Maria Municipal Code entitled “Reconsideration of Discretionary Permits,” is hereby amended to read as follows:
2 “Section 12-35.501. Permit Expiration and Time Extensions. (a) Period of Validity. The period of validity for a Conditional Use Permit or a Planned Development Permit shall begin on the permit’s effective date as set forth in Section 12 -

35.109. The period of validity shall run pursuant to subsection (c) of this section. The expiration date of a discretionary permit issued in conjunction with a tentative subdivision map shall correspond with the expiration of that map, including any extensions.

(b) Establishment. A conditional use permit or planned development permit shall be deemed established if the following actions occur within three years of the effective date of the approval or within such other time period designated by the approval:
(1) In the case of a conditional use permit or planned development permit where ministerial permits are required, such permits have been issued. (2) In the case of a conditional use permit or planned development permit where no ministerial permits are required, the use authorized by the permit has been established. In circumstances where a business license is required, such business license has been issued.

(c) Expiration. A conditional use permit or planned development permit shall expire and be of no further force or effect if:
(1) The permit is not established within three years of the permit’s effective date or such other time period designated by the permit approval, by state law or by this code; or
(2) After establishment, the use or activity for which the permit was approved is discontinued or abandoned for a period of six months.

(d) Time Extensions.
(1) Upon application before expiration of the period of validity, the original decision- making body may grant an extension to the period of validity for up to two years if it finds that there has been adequate due diligence to implement and complete the permit, or that there are significant economic factors that justify additional time. The filing of an application for extension shall stay expiration of the permit until action is taken on the time extension by the decision-making body.
(2) Projects not requiring a time extension may be constructed in accordance with the requirements and standards in effect at the time of permit approval provided the construction complies with all project conditions of approval and all laws in effect at the time of the permit approval. However, any project or permit requiring a time extension shall conform to the requirements and standards in effect at the time the extension is granted.”

3 SECTION 2. A new Section 12-35.504 is hereby added to Article 5, of Chapter 12-35 of Title 12 of the Santa Maria Municipal Code entitled “ Permit Revocation, ” to read as follows:

“Section 12-35.504. Permit Revocation.
(a) Grounds for Revocation. Any conditional use permit or planned development permit may be revoked by the decision-making body that originally took action on the permit pursuant to the provisions of this section on any of the following grounds:
(1) Such approval was based on inaccurate or misleading information. (2) One or more of the conditions upon which such approval was granted or extended have been violated.
(3) The permit included a specific timeline that has not been complied wi th, or provided for phasing that has not occurred within the time provided for such phasing.
(4) The permit involves a conditional use that has been abandoned.

(b) Procedure. Prior to any action on revocation, the decision-making body shall hold a public hearing noticed and held in accordance with Section 12 -35.104, except that the permittee shall be given not less than thirty days’ notice. The notice shall state the causes for which the revocation is to be considered.
(c) Action of Decision-Making Body. Following the hearing, the decision-making body may revoke the permit or revoke the permit subject to reinstatement upon compliance with the conditions of the original permit and any other additional conditions of approval necessary to preserve the public health, safety or welfare. (d) Amortization. If a revocation of any permit is ordered, the decision-making body may at the same time provide for a reasonable period of time to amortize any lawful existing uses on the site. Extensions of this time period may be granted for good cause shown on a later application to the decision-making body by any affected person. (e) Appeal. Any action by the decision making body pursuant to this section ma y be appealed as set forth in Section 12-35.401.”

SECTION 3. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), and the CEQA guidelines, and the City’s environmental procedures, and has been found not to be a project subject to CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment (CEQA Guideline Section 15378(b)(5)).

SECTION 4. If any part or provision of this chapter, or the application thereof to any person o r circumstance, is held invalid, the remainder of the chapter, including the application of that part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this ordinance are severable.

4 SECTION 5. The Chief Deputy City Clerk is hereby authorized to make m inor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief D eputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

SECTION 6. This Ordinance shall be in full force and effect thirty (30) days after its passage. Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and publish ed at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

INTRODUCED at a regular meeting of the City Council held on the 19th day of March 2024, and PASSED AND ADOPTED at a regular meeting held on the _____ day of ______ 2024, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Chief Deputy City Clerk

Mayor

5 APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
Interim City Manager

FOR THE COUNCIL MEETING OF MARCH 19, 2024

COUNCIL AGENDA REPORT

TO: City Council

FROM: Interim City Manager Alex Posada

BY: Interim Assistant City Manager / Director of Community Development Chuen Wu

SUBJECT: Zoning Text Amendments for Accessory Dwelling Units, Title 12 of the City of Santa Maria Municipal Code

Description:

The City Council will consider the adoption of Zoning Text Amendments (Z2023-0001) to amend Chapter 12-56, Accessory Dwelling Units, of Title 12 – Zoning, of the City of Santa Maria Municipal Code.

Environmental Notice: The proposed Zoning Text A mendments are statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) per Public Resources Code Section 21080.17.

RECOMMENDATION:

Introduce an Ordinance for the first reading and continue to a future meeting for the second reading and adoption, amendments to Chapter 12-56, Accessory Dwelling Units of Title 12 – Zoning, of the City of Santa Maria Municipal Code.

BACKGROUND:

On October 9, 2019, Governor Newsom signed three bills (AB 68, AB 881, and SB 13, codified in Government Code Sections 65852.2 and 65852.22) into law to further streamline the permitting process for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) located in residential zones. These bills became effective on January 1, 2020. To comply with the updated State law requirements, staff completed Zoning Text Amendments to Chapter 12 -56 of Title 12 (Accessory Dwelling Units) and the amendments went into effect on June 17, 2021. Chapter 12 -56 was most recently updated on July 7, 2022, to clarify that except as provided in Government Code Section 65852.26, ADUs shall not be sold separately from the primary dwelling unit.

On September 28, 2022, Assembly Bill (AB) 2221 and Senate Bill (SB) 897 amended Government Code Sections 65852.2 and 65852.22 for ADUs and JADUs. These bills became effective on January 1, 2023, at which time certain provisions of the City’s Municipal Code, Chapter 12 -56, for p ermitting ADUs and JADUs became inconsistent with State law. The new legislation permits certain types of ADUs to have increased height allowances, allows greater flexibility in the number of ADUs and their placement on the 2 property, and streamlines the pr ocess of obtaining an ADU permit with a 60 -day turnaround timeline. The proposed Amendments include revisions to address the current legislation and serve to reorganize and refine Chapter 12 -56 for permitting ADUs and JADUs.

Planning Commission Review
The Planning Commission reviewed the proposed text amendments at the November 1, 2023, public hearing. At this hearing, the Commissioners had questions regarding height limits for detached ADUs, front yard setbacks, and proposed development standards regarding landscaping and income reporting. The Planning Commission continued the item to a future hearing date and requested that the item be reviewed at a study session before the next hearing. A study session was held on December 7, 2023, where staff clarified the Commissioner’s questions regarding height limitations and front yard setback requirements. The Planning Commission reviewed the item at the January 17, 2024 , public hearing, and recommended approval of the subject text amendments to the City Council.

DISCUSSION:

The proposed amendments to Chapter 12-56 follow State legislation for the development of ADUs and JADUs on residentially zoned lots in the City of Santa Maria. The following provides a detailed discussion of the proposed amendments.

ADU Building Height
Detached ADUs located on a lot with an existing single-family dwelling currently may not exceed the height that is permitted in the applicable zone district (for example, 25 feet in the R-1 zone). Under the current State legislation, jurisdictions may adopt a lower height limit, if it is no lower than 16 feet. Therefore, staff is recommending that the proposed ordinance be amended to limit the maximum building height for detached ADUs in single- family residential zones to be 18 feet. Attached ADUs may continue to be up to 25 feet in height and may not exceed two stories.

ADU Building Size
Detached ADUs on single-family lots currently may not exceed 1,200-square-feet in size.

The proposed amendments would lower the allowable size of detache d ADUs to 850 - square-feet for a studio or one bedroom, and 1,000-square-feet for an ADU with two or more bedrooms. Attached ADUs would be limited to 50 percent of the floor area of the primary residence.

Front Yard Setbacks
The current State legislation permits new construction attached and detached ADUs to encroach into the front yard setback of the underlying zone district if complying with the setback prevents the construction of an ADU that is at least 800-square-feet in size. The proposed ordinance i ncludes a provision that ADUs proposed to be located within the front yard setback area be limited to 800-square-feet in size. ADUs located within the front yard setback area must comply with all building codes and site distance requirements for safety.
3 ADUs and JADUs permitted under Government Code Section 65852.2(e)(1) This subdivision of State law requires the ministerial approval of ADUs within residential zones. These types of ADUs are not subject to other specified areas of State ADU law such as zoning and development standards (ex. lot coverage, setbacks, heights, and unit sizes). ADUs under this section must meet the building code and health and safety requirements. The City’s ordinance has been updated to be consistent with this subdivision and includes the following four categories:

1. One ADU and one JADU are permitted per lot within the existing space of a single- family dwelling or accessory structure.

2. One detached new construction ADU that does not exceed four-foot side and rear yard setbacks. May be combined on the same lot with a JADU if the ADU does not exceed 800 square feet and 16 feet in height.

3. Multiple ADUs within the portions of multifamily structures that are not used as livable space. Local agencies must allow at least one of these types of ADUs and up to 25 percent of the existing multifamily structures.

4. Up to two detached ADUs on a lot that has existing multifamily dwellings that are subject to height limits of 16 feet and four-foot rear and side yard setbacks.

Time Limits for Permit Approval
The current State legislation requires that jurisdictions approve or deny ADUs and JADUs within 60 days of a complete application. If the complete application has not been approved or denied within 60 days, the application shall be deemed approved . If an application for an ADU or JADU is denied, the City shall provide within 60 days a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the applicant can be remedied. If an ADU or JADU is submitted along with a new single-family or multi-family dwelling, the City may delay approving the ADU or JADU until the single-family or multi-family dwelling is approved.

Objective Design Standards
The ordinance amendments include the addition of new objective design standards applicable to ADUs that do not comply with Subdivision (e)(1) above. The types of ADUs subject to these standards would typically exceed 800 -square-feet and would be new- construction ADUs. The proposed objective design standards address architectural style and roof pitch, private open space, lot coverage, privacy to neighboring properties, lighting, and access. These standards will assist in ensuring that proposed ADUs are compatible with the existing primary dwelling and character of the neighborhood.

Alternative(s)
As an alternative to approving the recommended zoning text amendments, the City Council could reject the Planning Commission’s recommendations and not move forward with the recommended amendments. In that case, the provisions of the State legislation would continue to apply to the City’s review and permitting of ADUs and JADUs. Staff recommends that if the City Council does not approve the proposed zoning text amendments, staff be directed to prepare an ordinance repealing Municipal Code Title 12 4 Chapter 12-56, as this Chapter would be superseded by the State law and no longer applicable to permitting ADUs and JADUs in the City of Santa Maria.

Environmental Review
Under California Public Resources Code Section 21080.17, the California Environmental Quality Act (CEQA) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Section 65852.2 of the Government Code, which is California’s ADU law, and which also regulates JADUs, as defined by Section 65852.22.

Therefore, t he Ordinance is statutorily exempt from CEQA in that the Ordinance implements the State’s ADU law.

Fiscal Considerations
The proposed amendments will permit ADUs on residentially zoned lots within the city.

The construction of new attached and detached A DUs will generate some additional property taxes for the City , however, the inability to collect development impact fees for ADUs less than 750 square feet, as required by state statute, hinders the City’s ability to collect sufficient funds to provide public services for the additional residents.

Impact to the Community
The amended regulations will result in properly regulated ADUs and JADUs consistent with State law requirements and will allow the City of Santa Maria to continue to provide a wider range of housing options for families and individuals of various income levels. The increased density resulting from the construction of new ADUs and JADUs will result in an increase in the use of existing City utility infrastructure. Additional State exemptions to the parking requirements could result in impacts to available street parking in some neighborhoods. However, the amended Ordinance meets the minimum State law requirements for the number of ADUs and JADUs permitted on residentially zoned lots.

When properly permitted, these units will not pose a threat of a public nuisance or have an adverse impact on public safety, health, or welfare.

ATTACHMENTS
A: Planning Commission Resolution

ORDINANCE NO. 2024 -

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, AMENDING TITLE 12, CHAPTER 12-56 OF THE

SANTA MARIA MUNICIPAL CODE GOVERNING ACCESSORY

DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS

WHEREAS, State law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs); and

WHEREAS, in recent years, the California Legislature has approved, and the Governor has signed into law, a number of bills that amended Government Code Sections 65852.2 and 65852.22 to impose new limits on local authority to regulate ADUs and JADUs; and

WHEREAS, the City desires to amend its local regulatory scheme for the construction of AD Us and JADUs in order to comply with California Government Code Sections 65852.2 and 65852.22; and

WHEREAS, on November 1, 2023, the Planning Commission conducted a noticed public hearing and continued the item to a future hearing date with direction to staff to conduct a study session on the item prior to the next hearing; and

WHEREAS, on December 7, 2023, the Planning Commission conducted a study session on the item; and

WHEREAS, on January 17, 2024, the Planning Commission conducted a noticed public hearing and voted to recommend that the City Council adopt the ADU ordinance ; and

WHEREAS, on March 19, 202 4, the City Council conducted a noticed public hearing.

NOW, THEREFORE, IT IS HEREBY ORDAINED by the City Council of the City of Santa Maria, State of California, as follows:

SECTION 1. Chapter 12-56 of Title 12 of the Santa Maria Municipal Code is hereby deleted in its entirety and a new Chapter 12-56 is adopted to read as follows:

“CHAPTER 12-56 ACCESSORY DWELLING UNITS
Section 12-56.01. Purpose.

The purpose of this Chapter is to allow and regulate Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in compliance with California Government Code Sections 65852.2 and 65852.22. The intent is to encourage the orderly development of ADUs and JADUs that contribute needed housing. 2 Section 12-56.02. Effect of Conforming.

An ADU or JADU that conforms to the standards in this section will not be:

1. Deemed to be inconsistent with the City’s General Plan land use designation and zone district for the lot on which the ADU or JADU is located.

2. Deemed to exceed the allowable dwelling unit density for the lot on which the ADU or JADU is located.

3. Considered in the application of any City ordinance, policy, or program to limit residential growth.

4. Required to correct a No nconforming Zoning Condition, as defined below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code Section 17980.12.

Section 12-56.03. Definitions.

1. Accessory Dwelling Unit (ADU). An attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It includes permanent provisions for living, sleepi ng, eating, cooking, and sanitation on the same lot as the single -family or multi -family dwelling is or will be situated. An Accessory Dwelling Unit also includes the following:
a. An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code; and
b. A manufactured home, as defined by Section 18007 of the California Health and Safety Code.

2. Accessory Structure. A structure that is accessory and incidental to a dwelling located on the same lot.

3. Efficiency Kitchen. A kitchen that includes a cooking facility with appliances and a food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.

4. Existing Structure. For the purposes of defining an allowable space that ca n be converted to an accessory dwelling unit, within the proposed space of an existing structure means within the four walls and roofline of any existing structure that can be made safely habitable under local building codes at the determination of the building official regardless of any non-compliance with zoning standards.

5. Junior Accessory Dwelling Unit (JADU). A residential unit that:
a. Is no more than 500-square-feet in size;
b. Is contained entirely within a single-family residence or attached garage; 3 c. Includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single -family dwelling. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single -family dwelling in addition to an exterior entrance that is separate from the main entrance to the primary dwelling; and
d. Includes an efficiency kitchen as defined below.

6. Living Area. The interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

7. Multi-Family Dwelling. Any structure designed for human habitation that has been divided into two or more legally created independent living quarters.

8. Nonconforming Zoning Condition . A physical improvement on a property that does not conform with current zoning standards.

9. Passageway. A pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.

10. Public Transit. A location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed rout es, and are available to the public.

Section 12-56.04. Approval Requirements.

1. Approval of ADUs and JADUs in conformance with Government Code Section 65852.2(e)(1). The Community Development Director shall ministerially approve an application for an ADU or JADU that complies with each of the general requirements in Section 12-56.05(A) with a building permit for any of the following:

a. Converted on a single-family dwelling lot.
i. One ADU on a lot with a proposed or existing single -family dwelling on it, where the ADU:

1. Is either:
a. Within the space of a proposed single -family dwelling; or
b. Within the space of an existing single -family dwelling; or
c. Within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion
is limited to accommodating ingress and egress; and

4 2. Has exterior access that is independent of that for the proposed or existing single-family dwelling; and

3. Has side and r ear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.

ii. One JADU within the space of an existing or proposed single -family dwelling or attached garage in compliance with the requirements of Government Code Section 65852.22.

1. When a garage is converted to a JADU, onsite replacement parking shall be provided in conformance with Chapter 12-32.

Covered parking is not required.

b. Limited detached on a single-family dwelling lot. One detached, new construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under Section 12 -56.04.1.a above), if t he detached ADU satisfies the following limitations:
i. The side and rear setbacks are at least four feet.
ii. The floor area is a maximum of 800-square-feet.
iii. The height does not exceed the applicable height limit in subsection 12-56.05(A)(2), below.

c. Converted on multi-family dwelling lot.
i. Multiple ADUs within portions of existing multi -family dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings.
ii. At least one converted ADU is allowed within an existing multi-family dwelling, and up to 25 percent of the existing multi -family dwelling units may each have a converted ADU under this subsection.

d. Limited detached on multi -family dwelling lot. No more than two detached ADUs on a lot that has an existing or proposed multi -family dwelling if each detached ADU satisfies the following limitations:
i. The side and rear yard setbacks are at least four feet. If the existing multi-family dwelling has a rear or side yard setback of less than four feet, the City will not require any modification to the existing multi - family dwelling as a condition of approving the ADU.
ii. The height does not exceed the applicable height limit in subsection 12-56.05.(A)(2), below.

5 2. Approval of ADUs not in conformance with Government Code Section 65852.2(e)(1). Except as allowed under subsection 12 -56.04.1 above, one attached or one detached ADU shall be allowed fo r each lot with a single -family dwelling or in connection with a proposed single -family dwelling for a vacant lot.

No ADU may be constructed or legalized without obtaining a building permit in compliance with the development standards contained in Section 12-56.05, below.

Section 12-56.05. Development Standards for ADUs and JADUs.

A. The following requirements apply to all ADUs and JADUs that are approved under Sections 12-56.04.1 and 12-56.04.2, above:

1. Zoning. ADUs may be permitted on lots in a residential or mixed-use zoning district with an existing legal single-family or multi-family dwelling, or in connection with a proposed single-family or multi -family dwelling for a vacant lot. JADUs are only permitted on lots that are zoned for single-family residential (R-1 & RSL-1) with an existing or proposed single-family dwelling.

2. Height.
a. A detached ADU created on a lot with an existing or proposed single-family dwelling unit may not exceed 18-feet in height. The ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. A detached ADU created on a single -family lot that also contains a permitted JADU may not exceed 16-feet in height. b. A detached ADU created on a lot that has an existing or proposed multi - family dwelling unit may not exceed 16 -feet in height. The height limit may be increased to 18 -feet in height if the existing or propos ed multi -family dwelling unit has more than one story above grade or is located within one- half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code. The ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. c. An ADU that is attached to the primary dwelling may not exceed 25 -feet in height or the height limitation imposed by the underlying zone district that applies to the primary dwelling, whichever is lower. Notwithstanding the foregoing, ADUs subject to this subsection may not exceed two stories. d. For purposes of this section, height is the vertical distance between the existing legal grade and the uppermost point of the roof of the structure directly above that legal grade.

3. Minimum Size. The minimum floor area of an ADU is 150 -square-feet for a standard unit. An “efficiency unit” ADU, in accordance with California Health and Safety Code Section 17958.1, may be a minimum of 150-square-feet.

6 4. Owner Occupancy. For all JADUs, either the primary dwelling unit or the newly created JADU shall be owner-occupied as a primary dwelling unit and permanent residence by the property owner(s). Owner-occupancy shall not be required if the owner is another government agency, land trust, or housing organization. a. If the Zoning Administrator determines that neither of the units is occupied by the property owner, the approval of the JADU shall terminate immediately and the unit shall not be rented, leased, or occupied as a separate dwelling.
b. For the purposes of this Chapter, the property owner is the majority owner of the property as shown in the most recent Santa Barbara County assessor’s roll. If there is more than one property owner on record, the owner with the majority interest in the property shall be deemed the property owner. Any property owner of record holding an equal share interest in the property may be deemed the majority property owner.
c. Covenant Agreement. A covenant agreement is required prior to the issuance of a building permit. The covenant agreement shall state that:
i. The JADU shall not be sold separately.
ii. The JADU is restricted to the approved size;
iii. The property owner is required to reside in the primary dwelling unit or the JADU;
iv. The use of the JADU shall be in effect only so long as the property is in compliance with the provisions of this Chapter; v. The above declarations are binding upon any successor in ownership of the property, lack of compliance shall be cause for code enforcement;
vi. The covenant agreement shall terminate upon removal of the JADU;
vii. The covenant agreement shall be recorded with the County Recorder of the County of Santa Barbara at the expense of the property owner.

5. No separate conveyance. Except as provided in Government Code Section 65852.26, no ADU or JAD U may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family dwelling lot) or from the lot and all of the dwellings (in the case of a multi -family dwelling lot). All restrictive covenants, and other contractual agreements with the City apply to the property.

6. Rental of Unit. Rental of the ADU or JADU is allowed for not less than 30-days.

7. Building Codes. Local building code requirements apply to ADUs and JADUs, as appropriate.
7 8. Passageway. No passageway shall be required in conjunction with the construction of an ADU.

9. Fire Sprinklers. Fire sprinklers are required in an ADU or JADU if sprinklers are required in the primary residence. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the primary dwelling.

10. Utility Meters. ADUs and JADUs shall not be considered new residential uses for the purpose of calculating utility connection fees or capacity charges, including water and sewer service. ADUs and JADUs contained within an existing residence or an existing accessory structure are not required to install new or separate utility connections or pay a related connection fee or capacity charge. For new attached and detached ADUs, the connection fee and/or capacity charge must be proportionate to the burden of the unit on the water or sewer system based on either its square feet or the number of its drainage fixture unit (DFU) values, as defined by the Plumbing Code.

11. Development Impact Fees.
a. No development impact fees are required for an ADU that is less than 750- square-feet in floor area. For purposes of this subsection, “impact fee” means a “fee” under the Mitigation Fee Act ( Government Code Section 66000(b)) and a fee under the Quimby Act ( Government Code Section 66477). “Impact fee” here does not include any connection fee or capacit y charge for water or sewer service.
b. Any development impact fee that is required for an ADU that is 750-square- feet or larger in floor area must be charged proportionately in relation to the square footage of the primary dwelling unit. “Development impact fee” here does not include any connection fee or capacity charge for water or sewer service. The amount of the required fee shall be determined by adopted fee Resolutions and ordinances and applicable law in effect when paid.

B. The following requirements apply to all ADUs and JADUs that are approved under Section 12-56.04.2, above:

1. Maximum Size.
a. The maximum size of an ADU is as follows:
i. 850-square-feet for a studio or one-bedroom ADU.
ii. 1,000-square-feet for an ADU with two or more bedrooms. b. An attached ADU that is created on a lot with an existing or proposed primary dwelling is further limited to 50 percent of the floor area of the existing or proposed primary dwelling.
c. Application of other development standards in this Section, such as lot coverage (as applicable), might further limit the size of the ADU, but no 8 application of the percent -based size limit above or of a front setback, lot coverage limit, or open space requirement (as applicable) may require the ADU to be less than 800 square feet.

2. Lot Coverage. No ADU may exceed 10 percent of the total lot area of the subject lot, subject to subsection B.1.c above.

3. Setbacks. ADUs subject to this subsection must observe the following setback requirements:
a. Side setback: Four feet
b. Rear setback: Four feet
c. Front Setback: The ADU shall be constructed in accordance with the setback of the underlying zone district, subject to Section B.1.c above. d. No setback is required for an ADU subject to this subsection if the ADU is constructed in the same location and to the same dimensions as an existing structure.

4. Building Separation. The minimum separation between the primary dwelling unit and a detached ADU must be at least five feet for new construction.

5. Parking.
a. Parking for ADUs shall be provided at a rate of one parking space per ADU or per bedroom, whichever is less. These spaces shall be provided in conformance with Section 12-32.12, except that tandem parking is allowed for ADUs as stated in Government Code section 65852.2 unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon the sp ecific site or regional topographical or fire and life safety conditions.

b. Parking requirements for an ADU are in addition to the required parking for the primary dwelling unit.

c. Parking is not required in any of the following instances:
i. The ADU is located within ½ mile walking distance of public transit.
ii. The ADU is located within an architecturally and historically significant district;
iii. The ADU is part of the proposed or existing primary residence or an accessory structure;
iv. When on-street parking permits a re required but not offered to the occupant of the ADU;
v. When a car share vehicle is located within one block of the ADU. 9 6. Objective Design Standards.
a. The materials and colors of the exterior walls, roof, windows, and doors must match the appearance of thos e of the primary dwelling. Samples of existing and proposed colors, materials, roofing, and features must be provided as part of a complete ADU application.
b. The roof pitch must match that of the dominant roof pitch of the primary dwelling. The dominant roof pitch is the pitch shared by the largest portion of the roof. Roof pitch and roof materials for a newly constructed ADU may be different from that of the primary dwelling on the lot only if accommodating installation of solar energy systems at the same t ime as construction of the ADU.
c. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight. Samples of proposed vegetative screening and planting locations must be provided as part of a complete ADU application. Exceptions to this design standard apply only to conversion of legally permitted structures that do not include installation of new exterior windows facing an adjacent property line or when only clerestory windows are used and do not provide views into neighboring lots.
d. Two-story detached ADUs shall limit the major access to stairs, decks, entry doors, and windows to the interior of the lot or an alley and comply with all development standards. Only one (1) curb cut shall be permitted per parcel and no additional driveways or access points shall be created to accommodate the ADU or main dwelling unit.
e. Exterior lighting shall be directed downward, fully shielded, and full cutoff or as otherwise required by the building or fire code.
f. Private Open Space. The main dwelling unit and the additional dwelling unit shall each be provided with a minimum of fifteen (15) feet by fifteen (15) feet of usable private open yard area, subject to subsection B.1.c above.

7. Historical Protections. An ADU that is on real property that is listed in the California Register of Historic Resources may not alter the exterior of any structure that is designated as a historic resource or, if the entire lot is designated as a historic resource, it may not alter the exterior of any structure on the lot.

Section 12-56.06. Permit process and timing.

1. ADUs and JADUs shall be permitted ministerially, without discretionary review or a hearing. The Community Development Director shall issue a building permit to establish an ADU and/or JADU in compliance with this Chapter if all applicable requirements in this Chapter are met, as appropriate.

10 2. The City must approve or deny an application to create an ADU or JADU within 60-days from the date that the City receives a completed application. If the City has not approved or denied the completed application withi n 60 days, the application is deemed approved unless either:
a. The applicant requests a delay, in which case the 60 -day time period is tolled for the period of the requested delay; or
b. If the permit application to create an ADU or JADU is submitted with a permit application to create a new single -family dwelling on the lot, the City may delay acting on the permit application for the ADU or JADU until the City acts on the permit application to create the new single -family dwelling, but the application to create the ADU or JADU shall be considered without discretionary review or hearing. Final building permit inspection for the single-family dwelling shall be approved prior to final building permit inspection approval for the ADU or JADU.

3. If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection (2) above.

Section 12 -56.07. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.

1. The City will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.

2. As required by State law, the City may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if denial is based on either of the following grounds:
a. The ADU violates applicable building standards, or
b. The ADU does not comply with the State ADU law (Government Code Section 65852.2, 65852.22) or this section.
c. Exceptions:
i. Notwithstanding subsection 2 above, the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if the City makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the structure.
11 ii. Subsection 2 above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code Section 17920.3.”

SECTION 2. Under California Public Resources Code Section 21080.17, the California Environmental Quality Act (CEQA) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as def ined by Section 65852.22. Therefore, the Ordinance is statutorily exempt from CEQA in that the Ordinance implements the State’s ADU law.

SECTION 3. If any part or provision of this chapter, or the application thereof to any person or circumstance, is he ld invalid, the remainder of the chapter, including the application of that part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this ordinance are severable.

SECTION 4. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

SECTION 5. This Ordinance shall be in full force and effect thirty (30) days after its passage. Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Council Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of thos e City Council Members voting for and against the Ordinance.

12 INTRODUCED at a regular meeting of the City Council held on the 19th day of March 2024, and PASSED AND ADOPTED at a regular meeting held on the _____ day of ______ 20__, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Assistant City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
Interim City Manager

FOR THE COUNCIL MEETING OF MARCH 19, 2024

COUNCIL AGENDA REPORT

TO: City Council

FROM: Interim City Manager Alex Posada

SUBJECT: Adoption of a Resolution Approving the Proposed Fiscal Year 2024 - 2026 Citywide Priorities Workshop and Minutes

DESCRIPTION:

The City Council will consider adopting City Council priorities for Fiscal Years 2024-2026 and approving Minutes from the February 19, 2024, Goal-Setting Workshop.

RECOMMENDATION:

Adopt a Resolution confirming City Council priorities for Fiscal Year s 2024-2026 and approving Minutes from the February 19, 2024, Goal-Setting Workshop.

BACKGROUND:

In years past, prior to staff compiling the City’s Biennial Budget, staff has routinely assisted the City Council in developing a list of overall Citywide priorities and/or goals to be addressed during the next two-year period. Staff, once again, engaged the services of an outside facilitator (Jan Perkins from Raftelis) to assist the City Co uncil in the biennial process.

DISCUSSION:

On February 19, 2024, Ms. Perkins assisted the City Council in formulating priorities for the next two years in anticipation of the upcoming budget cycle. The sessions addressed sharing visions for the future, r eviewing accomplishments and priorities, ways to strengthen teamwork, City Council norms, appropriate roles and responsibilities of both City Council and City staff, and establishing City goals and priorities for staff to work on during the upcoming two-year budget period.

The consultant interviewed members of the City Council and staff and identified four broad goals for discussion at the workshop. These broad goals include: long -term financial sustainability, community quality of life, planning and infr astructure, and organizational well-being. The City Council affirmed these goals overarching “umbrellas” under which the departments can tie their goals and work plans to.

2 This year the City Council again identified an over-arching principle of priorities as follows:

Consensus on Priorities
 New approach to economic development
 Provide youth opportunities
 Provide public safety resources
 Establish a staffing plan

Exhibit A of the Resolution is an overview of the February 19, 2024, City Council Workshop proceedings, as provided by Raftelis, and staff recommends that the City Council consider accepting the Report as the Minutes for the February 19th Workshop.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA, CONFIRMING CITY COUNCIL PRIORITIES FOR FISCAL YEARS 2024-2026 AND APPROVING MINUTES FOR THE
FEBRUARY 19, 2024, GOAL-SETTING WORKSHOP

WHEREAS, in years past, prior to staff compiling the City's Biennial Budget, staff has routinely assisted the City Council in developing a list of overall Citywide priorities and/or goals to be addressed during the next two-year period; and

WHEREAS, this year, the City again engaged the services of an outside facilitator (Jan Perkins from Raftelis) to assist the City Council in a goal -setting workshop on February 19, 2024; and

WHEREAS, the session addressed sharing visions for the future, reviewing accomplishments and priorities, ways to strengthen teamwork, City Council norms, appropriate roles and responsibilities of both City Council and City staff, and establishing City goals and priorities; and

WHEREAS, the workshop was very productive with the City Council identifying four priorities they would like staff to address during the next two-year period.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, consensus is confirmed of the Citywide priorities for Fiscal Years 2024-26 as reflected in the Raftelis Report, and said Report is hereby adopted as the minutes of the February 19, 2024, workshop (Exhibit "A").

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held on this 19th day of March 2024.

ATTEST:

Chief Deputy City Clerk

EXHIBIT A – Workshop Report/Minutes

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
Interim City Manager

City Council Retreat Report
Held February 19, 2024
City of Santa
Maria , CA
Exhibit A
City of Santa Maria Page 1
City Council Retreat
Trusted Advisors Transforming Communities
The City of Santa Maria, California, held a City Council Retreat on February 19, 2024. The retreat was planned and facilitated by Raftelis. The focus of the retreat was on establishing broad goals and two-year priorities, as well as strengthening teamwork among the Council and with the senior staff.

Participants
The following members of City Council and the City’s Leadership team participated in the workshop:
• Alica Patino, Mayor
• Carlos Escobedo, Council member
• Mike Cordero, Council member
• Gloria Soto, Council member
• Maribel Aguilera-Hernandez, Council member
• Alex Posada, Interim City Manager
• Chuen Wu, Interim Assistant City
Manager/Director of Community Development
Department
• Thomas Watson, City Attorney
• Jeff Marecic, Chief Information Officer
• Dawn Jackson, Interim Chief Human Resources Officer/Library Director • Xenia Bradford, Interim Director of Finance Department • Marc Schneider, Chief of Police
• Brett Fulgoni, Director of Public Works Department
• Angela Oslund, Interim Director of Recreation and Parks • Shad Springer, Director of Utilities Department
• Bradley Dandridge, Fire Chief

Facilitators: Jan Perkins and Julie Gieseke of Raftelis

Workshop Objectives
• Hear and understand Council’s interests and staff perspectives • Share visions for Santa Maria’s future
• Achieve consensus on broad multi-year goals and three or four two-year priorities • Strengthen teamwork with Council and staff

City of Santa Maria Page 2
City Council Retreat
Trusted Advisors Transforming Communities
Workshop Agenda
• Icebreaker
• Share visions for the future
• Review accomplishments and challenges
• Discuss and establish goals and priorities
• Discuss ways to strengthen teamwork
• Wrap-up

Opening Remarks and
Icebreaker
Mayor Alice Patino opened the workshop by welcoming staff and Council. Interim City Manager Alex Posada also provided opening comments to the group. An opportunity for public comment was provided.

The session then began with an icebreaker activity for participants. Staff were asked to line up according to where they grew up in relation to Santa Maria. The image below captures the locations around the world where staff and Council grew up.

City of Santa Maria Page 3
City Council Retreat
Trusted Advisors Transforming Communities
Visions for the Future
The Council and senior staff were a sked to share up to two responses for each of the following questions:

• What is true about Santa Maria today that you hope will still be true in 10 years? • What is not true about Santa Maria today that you hope will be true in 10 years?

Each individual was asked to write their responses to each question. All responses are captured in the following table.

True Today –
Hope It Will Still Be True in 10 Years
Not True Today –
Hope It Will Be True in 10 Years
• Small-town flavor
• An eye on the future and what could be
• Traditions are important
• Military economy component
• Agriculture economy component
• Agriculture influence
• Regional influence
• Values
• We hire locally and this creates a community
connected workforce
• Desirable place to live
• Continues good economy
• Financially stable
• Growth
• Fast-growing population, development, and services
• Community atmosphere
• Close-knit community (x2)
• Cohesive Council
• Sense of community (x4)
• Community/family oriented
• Community participation
• Family town
• Collaborative businesses
• Pro-growth
• Family-friendly community
• Good service to residents
• Sense of community and neighborly spirit
• Business focused
• Wanting to grow effectively
• Family-friendly
• Growing pains
• Safey
• Land of opportunity
• PCI of 80
• Have a wonderful downtown
• Preferred destination location of Central Coast
• Revitalized downtown with restaurants, plazas, and
other cultural amenities
• Safety
• Family-friendly
• Sense of community
• Grown well
• Firm economy
• Desirable place to live
• City financially able to sustain services
• More community involvement
• Open lands
• High income per capita
• High paying head of household jobs in tech/robotics
• Youth and families are thriving with improved access to affordable housing, better higher education, outcomes,
and more widespread availability of living wages
• Diversified economy
• Good economy
• Economically sustainable
• Increased standing for professional/executive jobs in the region
• Unified vision
• City government center where all staff can be together • Housing to accommodate the population
• Grow
• Housing and business growth
• Sustainable city finances
• Annexations of property on east side of 101

City of Santa Maria Page 4
City Council Retreat
Trusted Advisors Transforming Communities
Themes from the Hopes for the Future
The themes from these “hopes” are displayed visually in the following image.

City of Santa Maria Page 5
City Council Retreat
Trusted Advisors Transforming Communities
Accomplishments and Challenges
The group reviewed major accomplishments and areas that have presented challenges for the City .

The facilitator led the group in a discussion focused on what contributed to these successes and what will help to address the challenges, which are captured in the images below.

Establishing Goals and Priorities
As part of the interviews with members of Council and meetings with staff the facilitator conducted prior to the retreat, four broad goals were identified for discussion in the workshop . The Council concurred with these broad goals. A number of comments were made about them, which are reflected visually in the graphic.

The four goals are:
• Long-Term Financial Sustainability
• Community Quality of Life
• Planning and Infrastructure
• Organization Well-Being

City of Santa Maria Page 6
City Council Retreat
Trusted Advisors Transforming Communities
The City currently does not have such Citywide goals These can be useful “umbrellas” under which all departments can relate their departmental goals and work plans. Additionally, the two -year priorities will fit under these broad categories.

Staff provided a status update to Council on the 2022 Goals, which was attached to the workbook for the day.

The Council and staff also discussed a variety of City needs. They are captured in the following graphic.

City of Santa Maria Page 7
City Council Retreat
Trusted Advisors Transforming Communities

Among the many books that the
noted author Stephen Covey wrote
was The Seven Habits of Highly Effective
People.

In that book, he included his “Big
Rocks” metaphor. His point is that if
a team wants to get really big things
done, time needs to be allocated for
those items f irst, t hen fill in the
remaining space with the small stuff.

If starting with the small stuff, there
won’t be time for the big things.

The Council and staff worked in
small groups to discuss what the “big
rocks” are that need focused
attention over the next two years.

The results are shown in the graphic
to the right.

Two-Year Priorities
After that discussion, each Council member was provided with four dots to use in identifying their top priorities for the next two years from among a list of items.

The top four priorities are:
• New approach to economic development
• Provide youth opportunities
• Provide public safety resources
• Establish a staffing plan

The results are presented in the images below.

City of Santa Maria Page 8
City Council Retreat
Trusted Advisors Transforming Communities

City of Santa Maria Page 9
City Council Retreat
Trusted Advisors Transforming Communities

Comments during the priorities discussion are captured in the following visual images. Highlights are listed below.

• Financial health should be more than re-establishing the savings fund; it should be having an appropriate level of resources and reserves
• Facilitate housing development should also include working with other cities to address State mandates
• Homelessness is about creating a path forward; it is not new but having a plan will be important
• Understanding how each department fits into the issues and what each department needs is important
• The list of items does not include all of the ongoing work of the city that is budgeted and provided for in city departments
• Having a stable workforce and providing for succession planning is important • We cannot do it all, so focusing on a few priorities is essential • Council wants the staff to be direct and say what needs to be said

City of Santa Maria Page 10
City Council Retreat
Trusted Advisors Transforming Communities
Strengthening Teamwork
City services, programs, Council priorities, and initiatives can best be implemented through positive teamwork among members of Council and with City staff. Council members all expressed their appreciation to City staff for their professionalism and hard work on behalf of the City.

As part of maintaining effective Council-Staff relationships, it’s important to foster trust, respect, collaboration, and understanding. The group discussed attributes of well-functioning teams and what strategies promote open communication and constructive dialogue. A visual representation of this conversation is captured in the image below.

City of Santa Maria Page 11
City Council Retreat
Trusted Advisors Transforming Communities
Review of the City Council’s Adopted Norms
The Council and staff reviewed the current norms for working relationships between Council and staff, and between members of Council. Through discussion, minor changes were made. The resulting norms are:

Revised Norms:

For relationships between Council and Staff:
• Be respectful
• Agree to disagree at times
• Engage in two-way communication
• Provide all viable alternatives and information
• Be respectful toward and about staff – and mindful about how we talk about staff

For relationships between members of Council:
• Be respectful
• Agree to disagree at times
• Respect that we all want to effectuate positive change • Encourage positive communication and dialogue
• Support decisions once made, whether voted for it or not • Show up for one another

Comments about the norms are shown in the following graphic.

City of Santa Maria Page 12
City Council Retreat
Trusted Advisors Transforming Communities
Wrap-Up
As part of the “Bike Rack” items to discuss at another time, the group expressed a desire for additional meetings with department heads regarding service levels they would like to provide and what they will need.

As the retreat came to a close, participants were asked to share their thoughts and takeaways and what was useful in today’s session, which has been captured in the image below.

FOR THE COUNCIL MEETING OF MARCH 19, 2024

COUNCIL AGENDA REPORT

TO: City Council

FROM: Interim City Manager Alex Posada

BY: Interim Chief Human Resources Officer Dawn Jackson

SUBJECT: Adoption of Resolutions to Approve Seven Positions , Personnel and Operational Changes

Description:

The City Council will consider the adoption of a Resolution approving an increase to the allocation for five Full-time Equivalent Confidential Technician I/II and two Full-Time Equivalent Business Program Leader Positions.

RECOMMENDATION:

Adopt a Resolution approving an increase to the allocation for five Full-time Equivalent Confidential Technician I/II positions and two Full-time Equivalent Business Program Leader positions.

BACKGROUND:

Funding from the American Rescue Plan Act (ARPA) was allocated from January 2022 through May 2023 for the addition of five 1.0 Full-Time Equivalent ( FTE) fixed-term Confidential Technician I/II positions and two 1.0 FTE fixed -term Business Pro gram Leader positions for the City Manager’s Office Administrative and Human Resources Divisions, and Finance Department. The City Manager’s Office Administrative and Human Resources Divisions, and Finance Department are seeking to maintain service deliver y within these central services functions with the allocation of five 1.0 FTE Confidential Technician I/II and two 1.0 FTE Business Program Leader positions in the General Fund.

DISCUSSION:

Business Program Leader serving as the Leaves Manager and Confidential Technician supporting the Leaves Manager : The Leaves Manager is instrumental in addressing complex and time -sensitive employee leave, interactive processes, and modified duty agreements to ensure compliance with Federal, State , and local statutes, laws, and regulations. In the past year , there have been 106 leave of absence notifications and continued communication, 16 interactive process engagements, and 36 modified duty engagements. The appointment of the Leaves Manager and the support of the Confidential Technician are instrumental in supporting the timely processing and recurring matters within each department related to leave of absence. The Leaves Manager and Confidential Technician have facilitated support for 800 employees, which includes full- 2 time, part-time, and limited service. The Leaves Manager has protected the assets of the City from incurring penalties that could occur if the City failed to engage in good faith .

These penalties range from $75,000 to $110,000 for each offense. This essential staffing also helps avoid violations of the Family and Medical Leave Act, the Americans with Disabilities Act, the Fair Employment and Housing Act, and the California Family Rights Act laws.

Business Program Leader and Confidential Technician for Employment Services: The responsibilities of the Business Program Leader and Confidential Technician are instrumental in addressing complex and time -sensitive Citywide employment services.

The Business Program Leader and Confidential Technician are essential in providing a high level of customer service to all City Departments, as well as over 800 City Employees. The Business Program Leader and Confidential Technician have processed and engaged in 202 New Hire Orientations, enrolled 549 employees into benefits, processed 982 personnel transaction forms, updated 152 open enrollment benefits changes, processed 248 recruitment requisitions, provided, and scheduled 81 exams for employee bilingual designation, and reviewed 6,436 applications for requisitions . The Business Program Leader and Confidential Technician are essential to provide a centralized recruitment and selection process, which follows the City Municipal Code as well as applicable Federal, State, and local statutes, laws, and regulations , the defining of classification systems, and streamlining processes for benefits, and new hire employee orientations.

Confidential Technician for City Manager’s Office: The City of Santa Maria experienced over a six percent increase in FTE personnel from Fiscal Year 2022 to Fiscal Year 2023 and an increase of approximately eight percent from Fiscal Year 2023 to Fiscal Year 2024. With this influx of new personnel, there is an impact on Information Technology (IT) to support more people, systems, and greater needs from City staff. Though not originally hired to do so, the current ARPA -funded Confidential Technician I in the City Manager’s Office has spent the majority of their time assisting IT. It has become evident th at IT will not only continue to need this assistance to provide day-to-day services but to be able to use their current staff effectively and efficiently to support all City -wide staff members.

Therefore, we hereby request the movement of the Confidential Technician I from Administration to Information Technology. The position currently assists in researching assets for asset management, but will expand the position to include life cycle procurement including obtaining quotes, ordering, receiving, invoice t racking, and payment; asset management including asset tagging, tracking, decommissioning, and e- waste disposal; maintenance/support contract tracking and monitoring; travel arrangement; credit card processing; calendar and meeting coordination and first l evel Helpdesk call taker (take the call and assign to the appropriate IT staff). This position will not only currently alleviate some clerical level workload that has been placed on the IT Analysts, but also some workload that has been carried by City Mana ger Administration staff, allowing better response time by both offices involved.

With the shift of and creation of permanency for this position, the City Manager’s Office will be able to relieve administrative staff of the daily accounting work by shifting this work 3 to the divisions within the department. This provides a more integrated process, allowing each division to manage their expenditures and budget more efficiently and effectively while still providing City Manager’s Office with oversight of the department’s budget.

Confidential Technicians for the Finance Department are essential to timely and accurately process payroll for the City’s growing workforce. The Payroll division consists of one Payroll Manager and three Confidential Technicians. Two confidential technicians were added to the division when ARPA fund first became available. Maintaining the organizational structure will be essential. As a result of this organ izational change, the payroll division has achieved a decrease in payroll processing time by 20%. Processing payroll faster relieves pressure on operating departments to submit timecards to payroll.

The staffing model also allows payroll to perform the following essential workflows:
biweekly and monthly reconciliations of all payroll benefits and GL account s; ability to handle changes to the MOU such as retro calculations for 313 SEIU employees, that add a layer of complexity on top of standard work load; provide constant support and training to departments due to their turnaround in appointed staff for timecards processing; complete CalPERS reports faster; ability to reach out to departments to obtain clarification before payroll is processed, such a s leave balance shortages, shift differential qualification, clarification of separation dates, leave without pay, and workers comp.

The City’s payroll process is limited in functionality to current technology that does not perform all calculations within the system itself. Manual entry of timecards at the department level requires a thorough review of all timecards to catch reporting errors.

Additionally, each of the positions in Finance and Human Resources is an essential piece of the success of the Enterprise Resource Planning project. These positions will provide crucial subject matter expertise for setting up and implementing the system and backfill for the project, as well as to focus on the work of the Council priority of creating a Citywide staffing plan.

All positions, including the City Manager’s Administrative position, will be essential to meeting broad Council and City goals of maintaining talent to deliver both internal and external services to support our growing City staff.

Alternative(s)
A decision by the City Council not to approve continued funding for the positions in the City Manager’s Human Resources Division and Finance Department will result in a negative impact on the current customer service for City employees, reduce the ability to keep in compliance with Federal and State legislation and local statutes, laws, and regulations, as well as necessitate additional funding toward staffing to complete the Enterprise Resource Planning project.

A decision by the City Council to not approve the allocation of the Confidential Technician within the City Manager’s Office, along with the move from City Manager Administrati on 4 to IT could result in employees experiencing a continual lag time when IT is called to assist with technology issues. Without this position, IT staff will continue to handle everyday clerical tasks, tying up the time that would be used to handle technology issues.

Fiscal Considerations
There is no fiscal impact to this addition through the remainder of FY 2023-24 as funding has already been allocated. In accordance with the latest Federal guidelines, ARPA funds are no longer eligible for staff expenditures as of May 2023. ARPA funds will be shifted to eligible projects, while the staffing expenditures will be funded by the General Fund.

No budget adjustment is necessary in the current fiscal year as sufficient funds have been allocated at the fund level. The annualized fiscal impact beginning in F iscal Year 2024- 25 is estimated at $879,100, consisting of $202,800 for each 1.0 FTE Business Program Leader and $94,700 for each 1.0 FTE Confidential Technician I/II

Impact to the Community
Overall, with the approval of these positions, City services will continue to be provided by City employees with no decrease in the level of service to the public. Instead, it is expected that there will be a positive impact and increase to current service levels to the public achieved by attraction an d retention of talent management, successful implementation of the ERP project increased employee job satisfaction , and increased performance to serve the community.

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA APPROVING SEVEN POSITIONS, PERSONNEL

AND OPERATIONAL CHANGES

WHEREAS, certain personnel and operational issues are brought forward for the City Council’s consideration; and

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

1. Increase allocation of one Full -time Confidential Technician I/II in the City Manager’s Office, two Full -time Confidential Technician I/II for Human Resources Division, two full time Confidential Technician I/II for the Finance Department, and two Full -time Business Programs Leader positions for the Human Resources Division in the General Fund;

2. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 19th day of March 2024.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

FOR THE COUNCIL MEETING OF MARCH 19, 2024

COUNCIL AGENDA REPORT

TO: City Council

FROM: Interim City Manager Alex Posada

BY: Interim Director of Finance Xenia Bradford

SUBJECT: Enterprise Resource Planning System Project Implementation

Description:

The City Council will c onsider approving the Enterprise Resource Planning System Project Implementation.

RECOMMENDATIONS:

1. Adopt a Resolution approving the Master Services Agreement with Cognizant Worldwide Limited - Cognizant Technology Solutio ns U.S. Corporation for implementation of the Enterprise Resource Planning System; and

2. Adopt a Resolution approving the Master Subscription Agreement with SpryPoint Services, Inc.; and

3. Adopt a Resolution approving the Master Services Agreement with C an/Am Technologies, Inc.; and

4. Adopt a Resolution to ratify the Master Subscr iption Agreement with Workday signed by Interim City Manager Alex Posada on January 30, 2024; and

5. Adopt a Resolution approving a budget amendment in the amount of $3, 481,081 and establishing 10 F ull-Time Equivalent positions for a limited two-year term for the project implementation.

BACKGROUND:

The City of Santa Maria has been using Tyler Eden as its core financial system since 1998. The technology is outdated and provides minimal functionality compared to the financial systems available today. The system only maintains core financial records, whereas most of the City’s financial processes are handled via paper workflows, email, or Excel spreadsheets. The City also utilizes NeoGov for Human Resources ( HR) management. While NeoGov provides certain preferred features for recruitment, 2 onboarding, and performance tracking, it does not provide functionality for comprehensive Human Capital Management.

The City began the process of planning for an Enterprise Resource Planning (ERP) System implementation with the Fiscal Year 2018 -20 Financial Plan. Addit ional funding was set aside with the Fiscal Year 2020 -22 Financial Plan with total appropriations set aside for this project of $4,905,000.To date, $165,081 has been spent on the project for consultants to prepare the requirements specifications and select a preferred vendor. The remaining budget is $4,739,919. The total budget for the two -year implementation is estimated at $8, 221,000. The subscript ion costs for the software total $729,547 for the initial two-years. An additional $3,481,081 is requested to be allocated to the project.

A Request for Proposals was issued in October 2022 (Attachment B), and a total of four proposals were received. The selection committee selected a proposal from Cognizant/Collaborative for the implementation of Workday, SpryPoint, and CanAm/Teller technologies. Core Financials, Human Capital Resources Management, and Payroll will be managed through the Workday system. SpryPoint will be used for Utility Billing and CanAm/Teller for cashiering. These systems will be integrated to provide seamless workflows. Unlike the current system, Eden, the planned ERP products are modern systems with open interfaces that enable integr ation with other systems and workflows. These integrations will improve staff efficiency and reduce errors and rework due to disparate applications and manual data entry and processing.

The project is scheduled to commence in June of 2024 and be complete d in the Spring of 2026. The newly established ERP system is anticipated to have a life of at least 10 years before the City may require a significant upgrade.

DISCUSSION:

The ERP System is essential for the City to meet its statutory obligations for fi nancial reporting, provide necessary tools for payroll and human resources management, enable electronic workflows for major citywide processes such as procurement, grants, projects, accounts payable, accounts receivable, timekeeping, payroll processing, cashiering, and utility billing. The twenty-five-year-old financial system currently in place and the lack of a comprehensive system for human resources capital management leads to inefficiencies, inadequate internal audit capabilities, and higher risk for human error due to disjointed systems and multiple points of data entry. As the City is expected to continue to grow, modern information technology tools will enable economies of scale, faster processing times, higher accuracy, and improved analytical abilities and data-driven decision making.

3 1377 1458 1,375 1,478 1534
1746
649 664 647 657 645 694
223 245 215 216 262 278
0 200
400
600
800
1000
1200
1400
1600
1800
2000
2018 2019 2020 2021 2022 2023
Accounts Payable 6 year historical
trend (Avg per month)
AP invoices AP checks PO's issued
The number of transactions has been growing over time. If efficiencies through the ERP system are not implemented, the investment in additional staffing will be required to maintain current levels of service. For example, the following trends are seen in Accounts Payable workloads.

The following Accounts Payable workflow is an example of the current state vs. proposed future more efficient state. As shown below the workflow is improved through utilization of information technology and business process re-mapping.

4 The following table shows the functionality of the proposed Enterprise Resource Planning System.

Functional Area Phase

FINANCIALS
Core Financial Management, Accounting, and Finance 1
Financial Accounting 1
Commitment Accounting 1
Budgets 1
Banking and Settlement 1
Procurement 1
Supplier Accounts 1
Business Assets 1
Expenses 1
Revenue Management 1
Project and Work Management 1
Grants Management 1
Planning 1
Utility Billing 1
5 Cashiering 1

CROSS-FUNCTIONAL
Prism 1
Mobile Solutions 1
Employee Self-Service 1
Manager Self-Service 1
HUMAN CAPITAL MANAGEMENT (“HCM”)
HCM: Core 2
Compensation: Core 2
Benefits 2
Talent & Performance Management 2
Learning Management 2
Absence Management 2
Time Tracking 2
Payroll 2

The proposed project timeline is as follows.

Phase 1
Financials

Phase 2 – Human Capital Management/Payroll Absence Time Tracking:

The ERP implementation will be a transformative endeavor for the City. The implementation of the proposed modern technology will enable the City to re -imagine its business processes, organize and analyze financial and human capital data, leading to better-informed decision-making, enhanced analytical abilities, and improved security of data and accuracy. The project will transform these internal administrative processes not only for the core implementation departments responsible for the implementation of Finance and Human Resources functions but for all departments citywide. The two-year project will require dedication to the project from the City. The diagram below shows the

6 Position Personnel Costing Accounting Utility Billing Revenue Payroll Total (FTE) Positions Annual Cost Business Program Leader 165,500$ 0.5 0 0.5 0 1 165,500$ Confidential Technician III 133,400$ 0 0 0 1 1 133,400$ Accounting Technician I/II 113,200$ 0 0 1 0 1 113,200$ Finance Clerk I/II 98,800$ 1 2 0 0 3 296,400$ Move-Up Pay for Division Management Back-Fill 82,000$
Total 510,900$ 1.5 2 1.5 1 6 790,500$
project organizational structure for the City and the City’s implementation partner, Cognizant/Collaborative.

In order to implement the ERP, additional staff will be necessary to back-fill Finance and Human Resources functions. The City will need to continue to service these two key internal functions while dedicating expert staff to the project implementation. Staff has performed a thorough analysis of existing processes, the scope of work for the project, and interviews with other government agencies who have implemented similar systems.

Finance Department Staffing Request: 1.0 F ull-Time Equivalent Business Program Leader, 1.0 F ull-Time Equivalent Confidential Technician I/II, 1.0 F ull-Time Equivalent Accounting Technician I/II, 3.0 Full-Time Equivalent Finance Clerk I/II.

The Finance Department requests the following resources for the duration of the project.

The established positions will be a limited term of up to two years. The Department of Finance will engage in an organizational assessment study in Fiscal Year 2025 -26 to establish adequate long -term resources for the Finance function based on the new business processes and utilization of the ERP system. The ERP system is anticipated to have a life of at least 10 years.

7 In Finance, the Accounting and Revenue Divisions will share a Business Program Leader with a solid background in government accounting and the ability to oversee the day-to- day operations of these divisions, as well as fiscal year -end processes, such as preparations and completion of the Annual Comprehensive Financial Report.

Accounting Division requires additional capacity from one Finance Clerk I/II to support the Accounts Payable cycle and other accounting duties as the existing Finance Clerk serves as the subject matter expert developing that function’s Standard Operating Procedures, documenting workflow, and conducting business process testing in the new ERP.

Revenue Division requires additional capacity from one Accounting Technician I/II that will work alongside the existing Accounting Tech nician III to maintain the department’s efficiency and support ongoing training initiatives during ERP implementation as the existing Accounting Technician III assists with developing and testing Standard Operating Procedures for the Revenue and Business License functions in the ERP system.

Utility Billing will require additional capacity from two Finance Clerk I/II positions necessary to ensure data converted into the new ERP system is accurate. It is anticipated that some of these positions may also sup port data entry and other configurations necessary to implement a grants module in the new ERP system.

Payroll requires the additional capacity from a Confidential Technician III to ensure payroll cycles are not disrupted, as well as the processing of sa lary adjustments, workers compensation adjustments/calculations, and other payroll calculations required, as existing Payroll staff develop a handbook that will provide guidance and references for common and frequently asked questions.

The estimated cost for the additional staff for the duration of the project is $1,581,000.

Human Resources Staffing Request: 2.0 Full-Time Equivalent Business Program Leader,

1.0 Full-Time Equivalent Confidential Technician II.

The Human Resources Division of the City Manager’s Office requests the following resources for the duration of the project. The established positions will be a limited term of up to two years.

Position HCM
Core Benefits Talent
Management Learning Total FTE
Positions Annual Cost
Business
Program Leader 1 0.25 0.5 0.25 2 $ 331,000 Confidential
Technician II 0.5 0.25 0.25 1 $ 117,500 Total 1 0.75 0.75 0.5 3 $ 448,500
8 From the Employment Services team of the Human Resources division, additional support for one Business Program Leader as a subject matter expert to establish workflow and standard procedure elements for the HCM core functions of the new system will be required. Additionally, Business Program leaders skilled in benefits and training will support with a portion of their time, for establishing the benefits workflow portion of the system and providing staff training respectively, while Confidential Technician II ’s will assist with data input, research, and logistics to ensure accuracy in the areas of benefits and training.

From the Labor Relations and Management team, one Business Program Leader will support with subject matter expertise on talent management and performance to establish the workflow and standard procedures, and a Confidential Technician II will assist with backup and research for those procedures to be entered into the system.

The estimated cost for the additional HR staff for the duration of the project is $897,000.

Information Technology Division Staffing Request: 1.0 F ull-Time Equivalent Senior Project Manager.

The Information Technology Division has assigned its only project manager to the ERP initiative to coordinate project phases with the solution providers, schedule internal resources, provide status reports to the Steering Committee, resolve issues, mitigate project risks, and oversee the project as a whole. The requested project manager backfill position will take on the ongoing, non-ERP related projects (e.g., hardware and software life cycle replacement, system upgrades, capital IT projects, etc.) for the two-year duration of the ERP implementation project. The estimated cost will be $400,000 over two years.

Alternative:

The City Council could elect not to invest in the ERP system. This action is not recommended as the existing systems and procedures are inadequate to sufficiently safeguard the assets of the City and provide quality financial and human resources services to the organization. Man y of the current processes such as procurement, projects, and grants management are decentralized with minimal or no oversight from the centralized oversight functions of finance and human resources.

The City Council could also direct staff to seek altern ative implementation and software options for an ERP. It should be noted, however, that the City has gone through a thorough review to develop these recommendations over the period of the past two years.

The alternative recommendation, based on the needs o f the City, is not anticipated to yield savings in ongoing costs or implementation costs.

Fiscal Considerations:

The following are the categories of costs for the ERP Project: implementation services from Cognizant, software licensing for Workday, SpryPoint, and Teller, additional staffing, facilities improvements, equipment, and travel costs. This project will consider a two-year outlook for these costs to match the pace of the implementation. Some expenses such 9 as limited travel costs are included in th e implementation, but any additional expenses shall require a formal change request approval by the Steering Committee. A separate “Lean On Services” agreement from Cognizant will provide support beyond the implementation.

 Cognizant Implementation: $3,948,442
 Workday Implementation: $305,011
 Software licensing for 2 years: $729,547
 Additional staff to backfill project team positions for 2 years:
o Finance: $1,581,000
o Human Resources: $897,000
o Information Technology: $400,000
 ERP Workroom improvements: $50,000
 New computer systems: $60,000
 Travel Costs as incurred $50,000(Kick-Off, 2 go-lives, integrations, etc.)  Contingency: $200,000
Total project cost: $8,221,000

The following budget was previously allocated through Financial Plan adoptions for the project: $4,739,919.

The following additional Budget Amendment is requested: $3,481,081, the allocations are prorated to all operating funds (as shown below) based on the anticipated use of the system due to operating activities.

Account Number
%
Allocatio
n
$ Amount
Transfers From:
002-011-080-66-03 Water 17.70% $580,751
004-011-060-66-03 Solid Waste 3.60% $118,119
003-011-053-66-03 Wastewater 6.60% $216,551
010-011-052-66-03 Solid Waste Disposal 5.10% $167,335
031-015-042-66-03 Northwest Landscape District 0.20% $6,562 032-015-043-66-03 Northeast Landscape District 0.50% $16,405 033-015-044-66-03 Southwest Landscape District 1.10% $36,092 038-015-041-66-03 Southeast Landscape District 1.00% $32,811 Budget in 066-011-079-
52-34 Santa Maria Public Transit 4.70% $154,211
Budget in 801-005-010-
53-06 ERP General Fund 59.50% $1,952,244
Contingency N/A 200,000
10 Total Budget Amendment $3,481,081

Approximately $80,000 in support cost savings for Eden (Financial System) are anticipated on an annual basis after the ERP go-live date. An additional $45,000 in annual savings is anticipated from the discontinuation of two of the NeoGov modules that will be replaced with the ERP.

Impact to the Community:

The Enterprise Resource Planning System will bring forth modern technologies to the City’s financial and human resources operations. The City organization and the community will benefit from the efficiency of operations, enhanced security of City assets, and transparency of information.

Attachments
A. Business Case Short Form – ERP Project 2024-001
B. Request for Proposals
C. Cognizant Implementation Master Services Agreement
C-1. – Cognizant Santa Maria SOW FINAL
D.Workday Master Subscription Agreement
E. SpryPoint Master Subscription Agreement
F. CanAm/Teller Master Services Agreement
G. ERP Project Organizational Chart
Business Case

ERP PROJECT
PROJECT# 2024-001

ATTACHMENT A

City of Santa Maria
IT Division
110 E Cook Street, Room 7
Santa Maria, CA 93454

3/5/2024

Business Case ERP PROJECT #2024-001
2 TABLE OF CONTENTS

1. SUMMARY ................................................................................................................................ 3

2. ISSUE ....................................................................................................................................... 3

3. ANTICIPATED OUTCOMES ........................................................................................................ 4

4. RECOMMENDATION .................................................................................................................. 5

5. JUSTIFICATION ......................................................................................................................... 5

Business Case ERP PROJECT #2024-001
3 1. SUMMARY

The City of Santa Maria has been using Tyler Eden and Tyler Cashiering to track financial data since 1998, and a modern replacement is needed. In its current form, the application and database are hosted on premises and maintained by the IT Division. It lacks many features commonly available in an ERP (Enterprise Resource Planning) system such as sufficient electronic approval processes, document storage, audit trails, drill downs, budget, projects, and grant workflows, employee self-service and vendor self-service. Reporting is limited and requires supplemental spreadsheets and shadow systems. An approval system exists, but there are only a few that are included in the system, so most processes require the use of other systems such as Outlook, or paper forms to forward tasks. The Eden system is being phased out by Tyler and will no longer be supported as of March 2027. The City’s HR System, Neogov, was implemented in September of 2016 and contains some functionality found in ERP systems. However, it does not have full functionality for compensation, benefits and talent management. A single, unified system is required to implement industry best practices to maintain all employee records and payroll records. Neogov works well for the HR Division for recruiting, so this function may remain while others are replaced by the ERP in order to maintain one large umbrella system to be used City-wide.

2. ISSUE

Although the Eden application has served the City for many years, it lacks the functionality to manage finance and human resources information and processes effectively. Here are some of the issues:

1. Eden will reach its end of support within a couple of years (May 2027).

2. Most of the City’s Finance and HR processes are paper based. Examples include submitting timecards, requests for payments, travel authorizations, and a variety of other routine functions.

3. Eden’s reporting tools and drill-down capabilities into transactional data are inadequate. Without real-time, accurate data insights, decision-making processes are slow and prone to errors.

4. Eden lacks the capability to fully automate processes for purchasing, budget, projects, grants, accounts payable, accounts receivable, treasury and electronic bank reconciliation, payroll, and utility billing.

5. Eden is hosted on-premises, whereas most modern software systems are cloud-based to reduce the risk of system failures, and to reduce the amount of computing resources needed locally.

6. Eden does not have the capability to provide Application Programming Interface (API) connectors to share data among other City systems resulting Business Case ERP PROJECT #2024-001
4 in siloed data. For example, the IT Division tracks computer assets in the TeamDynamix system but are unable to pull data regarding the asset’s value unless it is statically assigned. As time goes on, and the asset’s useful life is met and it becomes eligible for replacement, Analysts are unable to see whether that condition has been met in TeamDynamix; they would need to review in Eden.

7. Timecards are paper or Excel based. Due to lack of electronic timecard capabilities and clear electronic approval processes, staff members spend significant time on processing timecards.

8. Although our purchasing guidelines are clear and well-defined, the Eden software does not have the tools necessary to build complex workflows and approval processes.

9. Eden is only accessible to City employees, so all utility billing and business license customers must contact Finance to get answers to questions. There is no self-service portal available to them. This results in a higher volume of phone calls to answer.

10. Eden lacks the ability to send ACH payments.

11. Neogov was intended to provide a host of HR services, but as we have been utilizing the system, it has been found to lack the requirements needed for the Human Resources Division.

12. Because of the aforementioned issues, central management of City financial management cannot be achieved resulting in siloed processes.

3. ANTICIPATED OUTCOMES

An ERP solution along with business process re-engineering has the potential to revolutionize the way the City operates and provide a high level of transparency.

1. The ERP System will last for at least a decade with no published end of support date.

2. The ERP System will provide an alternative to paper-based systems.

Approvals will be given electronically without the need for wet signatures and storing paper documents.

3. Real-time access to accurate data insights and advanced analytics tools will empower management to make informed decisions quickly.

4. Routine procedures for managing budgets, grants, accounts receivable, accounts payable, treasury and electronic bank resolution, payroll, and utility billing will be automated within the ERP System

5. The City’s chosen ERP will be cloud-based which will minimize the technology resources required and mitigate risk of data loss.

6. The City’s chosen ERP will have a host of API connectors to allow data to flow between other financial tracking systems such as CentralSquare’s Community Development, ZoomGrants, DebtBook, Progressive Solutions Business Case ERP PROJECT #2024-001
5 License Track, Remit Central, Telestaff, Active Net, FuelMaster, Genfare, WasteWorks TeamDynamix or AssetWorks, to name a few. A complete list of Integrations shall be maintained by the project manager.

7. Timecards will not require manual data entry by another employee.

Timecards will be reviewed and approved within the ERP by managers without the need to move Excel files into special folders to track them.

8. The new system will have the capability to build out workflows which are in alignment with best practice policies and procedures.

9. The ERP will provide improved self-service capabilities for utility billing and business license customers.

10. The ERP will increase the City’s capabilities to make and take electronic payments.

11. The future ERP will be able to meet all requirements of the Human Resources Division enabling the City to be proactive in talent management and career growth, and empowering employees to make informed decisions about their benefits and make adjustments with confidence.

12. Centralized management of financial processes will be the goal to minimize liability and increase accountability.

4. RECOMMENDATION

Cognizant proposed a solution that meets the City’s needs where they recommend implementing Workday services for Financials and HCM/PATT (Human Capital Management/ Payroll, Absence, & Time Tracking). In addition to Workday, Cognizant will provide an interface to SpryPoint for utility billing and Can/Am Teller for cashiering. The Workday HCM/PATT will replace some, but not all the functionality of Neogov. The “Onboarding” and “Perform” modules are the two modules that Workday is anticipated to replace. Neogov will continue to be used as a recruiting tool through its “Insight” / ”Online Hiring Center (OHC)” modules.

5. JUSTIFICATION

Time has almost run out for the Eden application with an anticipated end of support currently set as March 1, 2027. A new system needs to be chosen to continue managing City services. Although the software licensing for Workday, Teller, and SpryPoint exceeds the cost for Eden and some of the Neogov modules, the anticipated benefits and value realized by using the new system far outweighs the investment. Approximately $80,000 in software support cost savings for Eden are anticipated on an annual basis after the ERP go-live date.

An additional $44,881 in annual savings is anticipated from discontinuation of the Neogov Onboarding and Perform modules whose functionality will be Business Case ERP PROJECT #2024-001
6 replaced by Workday. A nnual costs for the new ERP will be approximately $350,000. The efficiency gained with simplified timecard processing, streamlined workflows, and API connectors justifies the increase in software costs and implementation fees. Efficiencies gained will not reduce staffing levels but allow us to focus energies where they are needed.

Approver Name Title Signature Date
Xenia Bradford Interim Finance Director
Dawn Jackson Interim HR Director
Jeffrey Marecic Chief Information Officer
2/28/2024
2/28/2024
3/8/2024
City of Santa Maria, CA
R
equest for Proposal
for Enterprise Resource Planning (ERP)
Software and Implementation Services
Issue Date: 10/3/2022
Closing Date: 11/7/2022 at 5:00 PM Pacific Time
RFP documents available:
https://www.cityofsantamaria.org/bids
Pre-Proposal Meeting (Non-Mandatory) on 10/12/2022 at
11:00 AM Pacific Time:

Send email to [email protected] requesting the meeting link

ATTACHMENT B
ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
Page | 2
Proposal Submission
Proposal Due Date: Submit to City by 5 PM local (Pacific) time on 11/7/2022 Submit to City: Both Hard Copy and Digital format of 1 technical proposal and signed addenda, including the following files:
• ERP Software and Implementation Services - Specifications.xlsx • ERP Software and Implementation Services - Pricing Forms.xlsx • ERP Software and Implementation Services - Vendor Forms.docx • ERP Software and Implementation Services – Terms and Conditions.docx
Electronic submissions will be electronically received by email [email protected]. The City is not responsible for electronic submissions not received by the deadline due to technical failures of its or the proposer’s systems.

Physical copies of the pr oposal should be sent to the address below. .

Proposers must send one (1) o riginal signed version and one (1) copy of the proposal. Proposals must be clearly marked as RFP for ERP Software and Implementation Services Submissions.

City of Santa Maria
Attn: Mary Harvey
206 East Cook Street
Santa Maria, CA 93454
Vendors must submit both a physical proposal and electronic submission.

Important Notice:

Effective immediately upon release of this request for proposal (RFP), and until notice of contract award, all official communications from proposers regarding the requirements of this RFP shall be directed via email to: [email protected] The City of Santa Maria or designee shall distribute all official changes, modifications, responses to questions or notices relating to the requirements of this RFP. Any other information of any kind from any other source shall not be considered official, and proposers relying on other information do so at their own risk.

ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
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Table of Contents

1. Introduction ............................................................................................................... 6

1.1 Overview ........................................................................................................................... 6

1.2 Definitions ........................................................................................................................ 6

1.3 City and Project Background ........................................................................................ 9

1.4 Current Application Environment .............................................................................. 10

1.5 Application Interface Table .......................................................................................... 13

1.6 Current Technical Environment ................................................................................. 15

1.7 Other Planned City Initiatives ..................................................................................... 15

1.8 Expected Scope of System Solution ............................................................................ 15

1.9 Software Scope ................................................................................................................ 16

1.10 Services Scope ................................................................................................................. 17

1.11 Summary of Organization Metrics ............................................................................. 18

1.12 Overall Evaluation Process .......................................................................................... 22

2. Vendor Proposal Guidelines .................................................................................... 24

2.1 Intent ............................................................................................................................... 24

2.2 Deadline for Proposals ................................................................................................. 24

2.3 Intent to Propose........................................................................................................... 25

2.4 Preparation of Proposals ............................................................................................. 25

2.5 Requirements for Signing Proposal .......................................................................... 25

2.6 No Ex-Parte Communications during Competitive Bidding Period ................... 25

2.7 RFP Clarifications and Questions .............................................................................. 26

2.8 Vendor Pre-Proposal Meeting .................................................................................... 26

2.9 Consideration of Proposals ......................................................................................... 26

2.10 Basis for Award, Evaluation Criteria and Questions .............................................. 26

2.11 Advice of Omission or Misstatement ......................................................................... 27

2.12 Confidential Information ............................................................................................. 27

2.13 Confidentiality Statement ............................................................................................ 27

2.14 Award of Contract ......................................................................................................... 28

2.15 Tax Exempt Status ........................................................................................................ 28

2.16 Reserved Rights ............................................................................................................. 28

2.17 Advertising ..................................................................................................................... 28 ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
Page | 4

2.18 Trademarks .................................................................................................................... 28

2.19 Right to Request Additional Information ................................................................ 28

2.20 Right of Refusal ............................................................................................................. 28

2.21 Proposal Preparation Costs ......................................................................................... 29

2.22 System Design Costs ..................................................................................................... 29

2.23 Pricing Eligibility Period ............................................................................................. 29

2.24 Additional Charges ........................................................................................................ 29

2.25 Turnkey Solution .......................................................................................................... 29

2.26 Data Storage ................................................................................................................... 29

2.27 Purchase Quantities ...................................................................................................... 30

2.28 Rights to Pertinent Materials ..................................................................................... 30

3. Proposal Response Format ....................................................................................... 31

3.1 Executive Summary (Section 1) ...................................................................................32

3.2 Company Background (Section 2) ...............................................................................32

3.3 Application Software (Section 3) ................................................................................. 33

3.4 Technical and Vendor Hosted/Cloud Information ................................................. 34

3.5 Implementation Plan (Section 5) ................................................................................ 34

3.6 Functional System Requirements (Section 6) .......................................................... 40

3.7 Staffing Plan (Section 7) ............................................................................................... 40

3.8 Ongoing Support Services (Section 8) ........................................................................ 41

3.9 Client References (Section 9) ....................................................................................... 41

3.10 Subscription and Maintenance Agreements (Section 10) ...................................... 42

3.11 Exceptions and Deviations (Section 11) ..................................................................... 42

3.12 Other Required Forms and Attachments (Section 12) ............................................ 42

3.13 Addenda (Section 13) ..................................................................................................... 43

3.14 Separate Cost Proposal ................................................................................................. 43 Pricing Format ....................................................................................................................... 44

4. Functional Requirements ........................................................................................ 46

4.1 Introduction ................................................................................................................... 46

5. Minimum Criteria .................................................................................................... 48

ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
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Listed below are specific and estimated dates and times of actions related to this request for proposal (RFP). The milestones with specific dates must be completed as indicated unless otherwise changed.

If it is necessary to change any of the specific dates and times in the calendar of events listed below, an addendum to this RFP will be issued.

Milestone Timeframe
RFP issuance 10/3/2022
(Optional) Vendor pre-proposal meeting 10/12/2022 at 11:00 AM Pacific Time Deadline for clarification questions (all must be sent to [email protected])
Via email on 10/26/2022 by 5 PM
local time
(Optional) Vendor intent to propose via email 10/31/2022 City posts addendum on City website with responses to
Vendor RFP clarification questions
Final addendum will be released by
11/2/2022
Vendor proposals due (both electronic and physical copy) 11/7/2022 by 5 PM Local Time Demonstrations of software on-site at the City (date
subject to change and will vary based on the number of
responsive vendors)
Expected January/February 2023
Contract negotiations and award Expected March/April 2023 Estimated start date of contract Expected May/June 2023 ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
Page | 6

1. Introduction

1.1 Overview
The City of Santa Maria is soliciting proposals from qualified providers of ERP software for municipalities whose product offering meets or exceeds current City requirements and whose complete product offering provides a robust solution set that will allow the City to continue to leverage this investment well into the future as the needs of the City grow and evolve.

1.2 Definitions
The following definitions are used in the RFP:
• Bidder, Vendor or Proposer means a firm, company, or organization responding to the RFP document to provide services to implement the software described in the RFP. • Business Days means Monday through Thursday, 8 a.m. to 5 p.m. local time in Santa Maria, excluding City of Santa Maria holidays.
• Business Function means business functional areas such as finance, budget, procurement, human resources, and payroll.
• Change Order means a written document signed by the City, and issued to the Bidder, which alters the scope of the Work to be performed by the Bidder, changes of the schedule for performance of the Work, increases or decreases the Bidder’s compensation, or any other change to the Contract.
• Client or City means City of Santa Maria, CA.
• Completion means fulfillment of all the Bidder’s obligations under the Contract. • Confidential Information means information that may be exempt from disclosure to the public or other unauthorized persons under City, state or federal statutes and regulations.

Confidential Information includes, but is not limited to, any information identifiable to an individual that relates to a natural person’s health, finances, education, business, use or receipt of governmental services, names, addresses, telephone numbers, email addresses, social security numbers, driver license numbers, financial profiles, credit card number s, financial identifiers and any other identifying numbers, law enforcement records, City source code or object code, or City security information. • Configuration means the use of application features to establish business rules in the application to meet the City’s business needs.

ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
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• Contract means the written agreement entered between the City and the Bidder evidencing the terms and conditions related to the Project. The Contract includes the Bidder-submitted Response, including executed bid/Response forms, pricing, specifications, and other attachments; Notice(s) to Proceed; and all Amendment(s) issued prior to, and all Modifications (Change Orders) issued after execution of the Contract. • Core/Required Functionality means the software functionality the City intends to implement as part of this project.
• ERP Application Software means the software solution for which the successful Bidder will be responsible for providing software integration and implementation services. • Holdback or Retention means the payment amounts held back by the City from each Deliverable’s Charges.
• Key Staff means Bidder’s personnel or subcontractor staff whose experience, skills, abilities, or background make them uniquely valuable to the City and who are named as Key Staff in this Contract or a Statement of Work.
• Outside Agency/3rd Party Interface an interface or integration with an outside agency or organization.
• Personal Data includes, but is not limited to, any information identifiable to an individual that relates to a natural person’s health, finances, education, business, use or receipt of governmental services, names, addresses, telephone numbers, email addresses, social security numbers, driver license numbers, financial profiles, credit card numbers, financial identifiers and any other identifying numbers, law enforcement records, the City ’s source code or object code, or the City’s security information. • Plante & Moran, PLLC is the City’s ERP Procurement Assistance consultant for the project. • Preexisting Material means proprietary products, software, methods, devices, or the like delivered by the Contractor to fulfill its obligations under this Contract. Preexisting Material does not originate from this Contract but may be incorporated into or be required to properly support Deliverables under this Contract. Preexisting Material may be owned by the Contractor or a third party that has given permission for its use hereunder. • Price means charges, costs, rates, and/or fees charged in United States dollars for the Services under this Contract.
• Project means City’s overall objective or endeavor of which this RFP document forms a part. • Proprietary Information means information owned by the Contractor or City to which the Contractor or City claims a protectable interest under law. Proprietary Information includes, but is not limited to, information protected by copyright, patent, trademark, or trade secret laws.
• Software means the licensed software application, including third -party software applications that are intended to be implemented by the City.

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• Software as a Service (SaaS) means the software vendor’s supported and managed software solution provided as a remote service to the client. The software implementer will work with the software vendor to implement the software solution chosen by the City. • Software Integrator means the Bidder selected through this RFP process to implement the software solution chosen by the City.
• Software Vendor means the company providing the software to the City through Software as a Service.
• Subcontract means any agreement, including purchase orders (other than one involving an employer/employee relationship), entered between the Bidder and a Subcontractor calling for services, labor, equipment, and/or materials required for the performance of the work required by the RFP document, including any modification thereto. • Subcontractor means any individual, firm, partnership, corporation, joint venture, or other entity, other than an employee of the Bidder, which contracts with the Bidder or a Subcontractor to furnish services, labor, equipment, or materials required for the performance of the work required by this RFP document, including any modification thereto. • Supplies, Materials, and Equipment as used herein shall include, without limitation, all items, tangible or intangible, to be incorporated in the work or otherwise delivered to the City hereunder.
• System means the fully installed, configured, and implemented software application(s), including any third-party software, necessary to meet the City ’s requirements and defined work.
• System Interfaces defines where the City has identified an integration is needed. • System Requirements means functional and technical requirements for the software solution chosen by the City. These system requirements and the software vendor’s response form are available in the attached ERP Software and Implementation Services – Requirements.xlsx.

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1.3 City and Project Background
The City of Santa Maria was incorporated on September 12, 1905 and is located in Santa Barbara County on the west coast of California in what is known as the Central Coast. The City has a population of approximately 110,000 and a harmonious balance of maintaining coastal and agricultural lands while promoting business. Santa Maria has been recognized nationally as an All- America City by the National Civic League and offers reasonably priced housing, community festivals, quality schools, and is in close proximity to beaches, cultural arts, a local airport, wineries, and higher education institutions. Santa Maria is the largest City by population and geographic area in the County. The City provides a full range of municipal services including police and fire services, engineering and planning, street maintenance, recreation and parks services, water and wastewater utilities, solid waste collection and disposal, and general administrative activities. The City is organized into 10 departments. The information technology functions of the City are centralized.

The City recently conducted a comprehensive assessment of their legacy ERP system, Tyler Eden, and related business processes. The assessment identified numerous gaps that can be filled by replacing Eden with a modern ERP system, such as improved reporting and analytics, improved workflows, and better ease of use. Therefore, the City is seeking qualified vendors to submit a proposal for an ERP system and implementation services.

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1.4 Current Application Environment
Legend for Current Applications
Legend Code Description
R Replacement City intends to replace this application with the selected solution.

C Consider City is considering replacing this application with the selected solution, based on the strength of the finalist Vendor offering and cost / benefit of the replacement module.

M Maintain City intends to retain the application, not replacing it through this effort.

I Interface City intends to keep the application and interface/integrate it with the selected solution.

C/I Consider/Interface City is considering replacing this application with the selected solution based on the strength of the finalist Vendor offering and cost/benefit of the replacement module. In the event City maintains this application, it would require an interface to the ERP. Therefore, the vendor must provide interface experience and pricing for these applications.

System Department Owner Description Future Plan
ActiveNet Recreation and Parks Recreation and Parks Management I AssetWorks Public Works Fleet Management/Asset Management I/C Authorize.Net Finance Credit card processor C
Bank of America Portal Finance Direct deposit upload I
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System Department Owner Description Future Plan
CalPERS Finance Retirement reporting M
Data Ticket Code Enforcement Code enforcement fee tracking M DCSS Finance Garnishments reporting M
Eden Multiple Core Financial, Human Resources, and
Payroll System R
ESRI Utilities GIS I
Fuel Master Public Works Fuel tracking I
IRS Reporting Finance Payroll Tax Reporting M
Linko Utilities FOG & Pretreatment Management Software I Microsoft Access Finance Collections tracking database R Microsoft Excel Utilities Project deposit tracking spreadsheet R Microsoft Excel Finance Budget Template R
Microsoft Excel Finance Credit Card Log R
Microsoft Excel Finance Fixed asset tracking spreadsheet R Microsoft Excel Finance Treasurer’s trust tracking spreadsheet R Microsoft Excel Human Resources FMLA tracking R
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System Department Owner Description Future Plan
Microsoft Excel Finance Asset replacement schedules R
Microsoft Excel Multiple Various departmental budget and purchase tracking spreadsheets R
Microsoft Excel Multiple Departmental grant tracking spreadsheets R Microsoft Excel Public Works Facilities asset inventory R Microsoft Excel Public Works Service request tracking R Microsoft Excel Utility Billing Construction water meter tracking R NeoGov Human Resources Applicant Tracking, Recruitment, and Onboarding System I/C
Portalogic Utilities Septage billing I
Progressive Solution Finance Business license management system I/C Routeware Utilities Solid waste collection management R State of California Reporting Finance Payroll Tax Reporting M Streetsave Public Works Street condition tracking I
Syncta Utilities Backflow prevention software I
Telestaff Police / Fire Public Safety scheduling and time entry I CentralSquare Community
Development (TRAKiT) Community Development Community development system I ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
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System Department Owner Description Future Plan
Tyler Cashiering Finance Cash Receipting System R
Vector Solutions (previously
Target Solutions) Human Resources Training management I/C Wasteworks Utilities Scale house management I
WebXtender Code Enforcement Document scanning for
community development M
ZoomGrants Community Development Grant reporting and tracking R

1.5 Application Interface Table
Data Flow Description Source Application Direction Target Application Rec and Parks cash receipts ActiveNet  Future ERP Solution Fleet costs Assetworks  Future ERP Solution
Direct deposit information Future ERP Solution ↔ Bank of America Portal GIS Data ESRI ↔ Future ERP Solution
Fuel costs Fuel Master  Future ERP Solution
Pretreatment charges to generate bills Linko  Future UB Solution New hire information NeoGov  Future ERP Solution
Employee data such as position
numbers, department ID, job title, hire
date, etc. sent to NeoGov. Personal
information, performance reviews,
etc. sent to ERP.

Future ERP Solution
↔
NeoGov Perform Module
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Data Flow Description Source Application Direction Target Application Cash receipts DataTickets  Future ERP Solution
Cash receipts Genfare  Future ERP Solution
Cash receipts SmrtPay  Future ERP Solution
Septage billing amounts Portalogic  Future UB Solution Business license payments Progressive Solution  Future ERP Solution Street condition information Streetsave  Future ERP Solution Backflow devices information to UB,
customer information to Syncta
Syncta
↔
Future UB Solution
Public safety time entries Telestaff  Future ERP Solution Community development and
Engineering payments
Community Development
(CentralSquare product) 
Future ERP Solution
Training records Vector Solutions  Future ERP Solution Scale house payments Wasteworks  Future UB Solution
Meter Reads to UB and customer data
to Sensus Sensus ↔ Future UB Solution

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1.6 Current Technical Environment
The information below provides Vendors with a current summary of the City of Santa Maria’s network and computing environments and standards. The City of Santa Maria is considering only vendor-hosted or cloud solutions. As part of the proposal process Vendors will be required to submit significant technical detail about their proposed solution detailed in section 4.4 of this RFP. In preparing responses, Vendors must remain diligent in referencing this table to assure that responses clearly identify:
• Areas of known or potential conflict between the Vendors proposed solution and the City of Santa Maria’s defined environments
• Recommendations of how best to implement and operate the proposed solution within the City of Santa Maria’s defined environments
An assessment of the City’s technology infrastructure was performed to identify technology related requirements and standards for a new ERP system to operate effectively in the City’s technology environment. The server and virtualization environment primarily consists of Windows servers and VMware hypervisor running on VxRail hyperconverged infrastructure (HCI). The City primarily leverages Active Directory (AD)/Azure AD for identity management and authentication.

Authorization to the new ERP system and all applications should be tied to Azure AD, providing single-sign-on (SSO) functionality to allow users to manage a single password for accessing all resources. The current application environment consists of a mix of on- premises and cloud-based applications such as Microsoft Office365, Kronos, GovQA, and NeoGov, to name a few. The City also has a list of applications that they would like to interface with the new ERP system which are identified in section 2.5. The City leverages redundant Internet connections from diverse carriers at 1Gbps and 500Mbps respectively. The perimeter also utilizes next generation firewall and associated capabilities. End user computing environment is comprised of a mix of desktops, laptops, and tablet/mobile devices running modern operating systems and browsers.

1.7 Other Planned City Initiatives
The City is upgrading TRAKiT to the CentralSquare Community Development application. The expected completion is by end of year 2022.

1.8 Expected Scope of System Solution
The City is requiring that responding vendors propose a fully integrated ERP vendor -hosted/cloud solution, including software, hardware specifications, implementation and project management, and other technology services for the entire scope of the project that may or may not include components owned by the vendor. The City recognizes that this project will have a significant impact on the City’s staff and is looking to minimize that impact insofar as possible. To the extent vendor ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
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is able, the City is looking for the vendor to conduct a thorough business analysis at the start of each module and to provide the City with a pre-configured system using its best practices and experience as a model. The City is expecting to review and test this pre-configured system, requesting minimal changes as required.

The following definitions should be considered relative to the list below: MORAN: Update this table based on requirements for core + expanded or not.>
• Core (required) - Components of the solution that are required to be fulfilled and proposed by responding vendors.
• Vendors can respond to modules with their own products, or they may partner with other vendors to submit a proposal that meets the expanded software scope listed below.

1.9 Software Scope
Core/Required Application Software:
• Financials:
o Accounts payable
o Accounts receivable
o Bank Reconciliation
o Budget
o Cash Receipting
o Contract management
o Fixed assets
o General ledger
o Grant and Project Accounting
o Inventory
o Purchasing
o Treasury
• Human Resources:
o Core HR
o Employee benefits
o Employee Self-Service
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o Learning management
o Onboarding
o Performance management
o Personnel actions
o Position Control
o Recruiting
o Succession planning
• Timekeeping and Payroll
o Payroll
o Time and Attendance
• Utility Billing:
o Account Management
o Billing
o Customer Portal
o Delinquency
o Device Management
o Rates
o Reporting and Analysis
o Service Orders
• Data Analytics and Reporting
• Document Management
• Any other necessary software components to support the proposed Core Application Software solution

1.10 Services Scope
Required Services
• Project Management
• Software Installation / Set-up
• Security Design and Configuration
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• Business Design / Software Configuration
• Technical Design and Standards
• Data Conversion and Migration
• Business Analytics, Report and Form Development
• Integration and Interface Development
• Software Modifications (if proposed to meet functional requirements) • Testing
• Training Services (functional and technical)
• Change Management
• Knowledge Transfer to Staff
• System Documentation Development
• Deployment
• Ongoing Support and Maintenance Services
• Ongoing Hosting Services
Additional details and descriptions related to the specifics of the expected scope can be found in Proposal Response Format – Section 4 in this RFP.

1.11 Summary of Organization Metrics
A summary of organization metrics and standards is included below. These volumes and standards reflect actual and estimated amounts for the current environment.

Metric Current
Population 109,910 (as of Jan 1, 2022)
Form of Government City
Jurisdictional Area (Square Miles) 23.42
Number of Departments 10
Budget (General Fund) ~99 million
Budget (Central IT) ~10 million
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Metric Current
Budget (All Funds) ~$216 million
Number of Expected Users Per Area
Finance/Procurement Power Users 12
HR/Payroll Power Users 20
Department end-users of purchasing, time and attendance, self-service, etc.
~700
Utility Billing Users 10
Utility Billing Service Orders Users 10
Technical Administration Users 9
General Ledger/Bank Reconciliation
Current Chart of Accounts Structure:

Expenditure: Fund – Dept – Division –
Object – Sub object
e.g. 100-100-100-10-10
Revenue: Fund – Category – Sub
Category – Sub Object
e.g. 100-100-10-10
Balance Sheet: Fund – Class – Sub-
account
e.g. 100-100-10
Fiscal Year End June 30th
Number of Funds 75
Number of Department Codes Dept = 18; Division = 60
Number of Expense Accounts 7,744
Number of Revenue Accounts 1,469
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Metric Current
Number of Manual Journal Entries (Monthly) 50
Number of Bank Accounts 5
Budgeting
Position Control? Yes
Budget Entry Model (Future State) (Centralized or
Decentralized):

Decentralized
Number of Approval Levels 5
Budget Frequency Biennial, but mid-cycle adjustment is
done prior to start of second year
Number of Funds Budgeted 75
Fixed / Capital Assets
Number of Capitalized Fixed Assets 3,687
Fixed asset tagging? Yes
Fixed Asset Capitalization Threshold
Unmovable fixed asset: > or = 3-year
useful life and > or = $50,000
Moveable fixed asset: > or = 3-year
useful life and > or = $5,000
Project / Grant Accounting
Do Projects/Grants Cross Funds? Yes
Do Projects/Grants Cross Departments? Yes
Purchasing / Contract Management
Use of NIGP/Commodity Codes? Currently not used
Number of Requisitions per Month 250
Number of Purchase Orders per Month 250
Number of Vendors in Purchasing System 8,149
Accounts Payable
Number of Invoices Input Annually 17,925
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Metric Current
Frequency of Check/EFT Runs weekly (on average)
Check Signature Method Embedded in the system
Payment Types Supported (Current) Manual Checks and Wires Payment Types Supported (Future) Manual Checks, Wires, and ACH Number of 1099s Processed Annually 97
Cash Receipting
Receipting Model: Decentralized
Number of Current Cash Registers / POS Terminals 20
Number of Current Cash Registers / POS Terminals to be
replaced with new solution
12 Human Resources / Payroll / T&A
Total Number of Employees ~700
Number of Annual Applications 4,694
Payroll Frequency Bi-Weekly
Number of Labor Units 7

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1.12 Overall Evaluation Process
Responses to this RFP will be evaluated by a committee consisting of various process owners within the City. The City’s intent is to acquire the solution that provides the best value to the City and meets or exceeds both the functional and technical requirements identified in this RFP.

The City will be using the following process to reach a finalist Vendor decision:

1.12.1 Minimum Criteria: As part of the Vendor's RFP response, the following minimum criteria must be met for a proposal to be considered for further evaluation. Failure to meet all criteria will automatically disqualify the Vendor's response from further consideration:

Minimum Criteria Checklist
□ Minimum Client Software Installations
Must have provided software for at least three previous municipalities of similar size, complexity, and scope.
□ RFP Response
RFP response is submitted by the due date and time.
□ Response Authorization
The RFP response is signed by an authorized company officer. □ Authorization to do business in State of California
The vendor must be authorized to do business in the State of California. □ Response Completeness
Vendor complied with all instructions in the RFP and provided a response to all items requested with sufficient detail, which provides for the proposal to be properly evaluated. Any deficiencies in this regard will be determined by City of Santa Maria ’s Purchasing Agent or his/her designee to be either a defect that the Agent will waive or that the proposal can be sufficiently modified to meet the requirements of the RFP. □ Vendor Hosted / Cloud Solution
Vendor responses must be vendor hosted and/or in the cloud. T he City will not consider an on-premises proposal.

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1.12.2 Round 2 Evaluation: For those Vendors whose proposals pass the minimum criteria, the following categories of criteria will be used to further evaluate the proposals in the following order of preference from high to low:

Round 2 Evaluation Criteria
Ability to meet functional requirements 40
Ability to meet technical requirements 20
Implementation services and ongoing support 30
Vendor viability 10
Total 100

1.12.3 Round 3 Evaluation: The top Vendors in the second -round evaluation will then proceed to an additional level of due diligence that may include the following activities:
• Follow-up questions and answers with the Vendors.
• Vendor demonstrations to include module/functionality demonstrations, technical demonstrations, service presentation, and other due diligence. • Reference checking with comparable entities using the Vendor's product.

At any point in time during the third round of evaluation, a Vendor may be eliminated from further consideration. At the conclusion of the round three activities, the finalist Vendors will be evaluated on all information collected to date against the following criteria in order of preference:

Round 3 Evaluation Criteria
Functionality 35
Cost 15
Vendor Viability 10
Implementation services and ongoing support 25
Technical requirements 15
Total 100

1.12.4 Final Round Best and Final: City may choose to request a Best and Final Offer during the proposal evaluation process.

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2. Vendor Proposal Guidelines

2.1 Intent
It is the intent of the City, through this request for proposal and the contract conditions contained herein, to establish to the greatest possible extent complete clarity regarding the requirements of both parties to the agreement resulting from this request for proposal.

Before submitting a proposal, the Vendor shall be thoroughly familiarized with all contract conditions referred to in this document and any addenda issued before the proposal submission date.

The selected Vendor’s proposal and any additional documentation (e.g., including vendor questions and responses) provided by the Vendor d uring the solicitation process will be integrated into the final contract for services entered between the City and the selected Vendor. It shall be the Vendor's responsibility to ascertain that the proposal includes all addenda issued prior to the proposal submission date.

2.2 Deadline for Proposals
Proposals must conform to the requirements set forth in the RFP. Proposals not conforming to these guidelines may be rejected as non-responsive.

Proposals must be submitted by the date specified in Section 1. Timeline Overview in this RFP.

Electronic submissions will be electronically received through the site specified in Section 1.

Timeline Overview in this RFP.

Proposals received after the deadline will not be accepted. The City is not responsible for electronic submissions not received by the deadline due to technical failures of it’s or the proposer’s systems or delivery services.

The electronic proposals should also include the following files:
• ERP Software and Implementation Services - Specifications.xlsx • ERP Software and Implementation Services - Pricing Forms.xlsx • ERP Software and Implementation Services - Vendor Forms.docx • ERP Software and Implementation Services – Terms and Conditions.docx

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The Vendor’s technical proposal response shall include the completed specification worksheets and pricing worksheets that have been provided in Microsoft Excel . The City wishes to keep pricing information separate from the technical proposal. Pricing should be provided in the Pricing Forms released with this RFP.

2.3 Intent to Propose
The City requests that vendors notify the City of their intent to propose to this RFP by the date listed in the timeline of section 1 of this RFP. However, failure to notify the City of their intent to propose will not disqualify a vendor from submitting a proposal.

2.4 Preparation of Proposals
Proposals shall be prepared in accordance with the proposal response format, provided in Section 4 Proposal Response Format . Proposals not complying with this format may be considered non- responsive and may be removed from consideration on this basis.

2.5 Requirements for Signing Proposal
• Each proposer, by making a proposal, represents that this document has been read and is fully understood.
• The proposal must be signed electronically using an industry-standard digital signature (e.g.

DocuSign, Adobe Acrobat, etc.) by an individual authorized to legally bind the person, partnership, company, or corporation submitting the proposal. • All signatures must have the name and title typed directly under the line of the signature. • The above requirements apply to all RFP addenda.

2.6 No Ex-Parte Communications during Competitive Bidding Period To insure the proper and fair evaluation of a response, the City prohibits ex-parte communication (e.g., unsolicited) initiated by the proposed Vendor to a City official, City-Council members, or an employee evaluating or considering the responses prior to the time a formal decision has been made.

Questions and other communication from vendors will be permissible until 5 :00 pm on the day specified as the deadline for questions. Any communication between responder and the City after the deadline for question s will be initiated by the appropriate City official or employee to obtain information or clarification needed to develop a proper and accurate evaluation of the response. Ex- parte communication may be grounds for disqualifying the offending responder from consideration or award of the solicitation then in evaluation, or any future solicitation.

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2.7 RFP Clarifications and Questions
If any person contemplating submitting a proposal is in doubt as to the true meaning of any part of this RFP, he/she may submit a written request to the City for an interpretation thereof. The person submitting the request will be responsible for its prompt delivery.

Any interpretation will be made only by an addendum. Vendor will acknowledge receipt of each addendum issued by stating so in his/her proposal. No oral explanation or instruction of any kind or nature whatsoever given before the award of a contract to a Vendor shall be binding.

All inquiries regarding this proposal must be submitted to the site listed in Section 1 – Timeline Overview. Responses to questions will be posted to the bid site listed in Section 1.

2.8 Vendor Pre-Proposal Meeting
A non-mandatory Vendor pre-proposal meeting will be held virtually on the date and time listed in Section 1 – Timeline Overview. Please email [email protected] to request a link for this meeting.

2.9 Consideration of Proposals
In cases where an item requested is identified by a manufacturer's name, trade name, catalog number, or reference, it is understood that Vendor proposes to furnish the item so identified and does not propose to furnish an "equal" unless the proposed "equal" is pre-approved by the City.

References to any of the above are intended to be descriptive but not restrictive and only indicate articles that will be satisfactory. Proposals on "equal" will be considered, provided that the Vendor states in his proposal exactly what he proposes to fu rnish, including sample, illustration, or other descriptive matter which will clearly indicate that character of the article covered by such proposal.

The designated City representative hereby reserves the right to approve as an “equal”, or to reject as not being an “equal”, any article proposed which contains major or minor variations from specifications requirements, but which may comply substantially therewith.

2.10 Basis for Award, Evaluation Criteria and Questions The qualification of proposal responders on this project will be considered in making the award. The City is not obligated to accept any proposal if deemed not in the best interest of the City to do so.

The City shall grant award to the qualified proposal responder based on fees submitted and responses to this RFP.

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Failure to include in the proposal all information outlined herein may be cause for rejection of the proposal.

The City reserves the right to accept or reject any and all proposals, in whole or in part, that are deemed to be in the best interest of the City at its sole discretion.

A proposal may be considered non- responsive at any time during the solicitation if conditions change.

The City reserves the right to waive any informalities or irregularities in proposals.

The City reserves the right to negotiate separately the terms and conditions or all or any part of the proposals as deemed to be in the City’s best interest at its sole discretion.

Information and/or factors gathered during interviews, negotiations and any reference checks, and any other information or factors deemed relevant by the City , shall be utilized in the final award.

The final award of a contract is subject to approval by the City Council.

2.11 Advice of Omission or Misstatement
In the event it is evident to a Vendor responding to this RFP that the City has omitted or misstated a material requirement to this RFP and/or the services required by this RFP, the responding Vendor shall advise the contact identified in this RFP on page 2 of such omission or misstatement.

2.12 Confidential Information
Information contained in the Vendor’s proposal that is company confidential must be clearly identified in the proposal itself. The City will be free to use all information in the Vendor's proposal for the City’s purposes. Vendor proposals shall remain confidential until the City’s Selection Team makes its recommendation to City Council. The Vendor understands that any material supplied to the City may be subject to public disclosure under the State of California Public Records Act (California Government Code Section 6250) and the City’s public records requests policies and procedures.

2.13 Confidentiality Statement
Any information, including materials, drawings, designs, documentation, and other property or data, disclosed to the proposal responder shall not be used, reproduced, appropriated, or otherwise disseminated to anyone other than the City.

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2.14 Award of Contract
The Vendor shall be deemed as having been awarded a contract when the formal notice of acceptance of the Vendor’s proposal has been duly served upon the intended awardee by an authorized agent of the City. Note that the successful Vendor, at the time of c ontract execution, must be licensed to do business in the State of California.

2.15 Tax Exempt Status
The City is not exempt from paying sales taxes.

2.16 Reserved Rights
The City reserves the right to waive any irregularities; accept the whole, part of, or reject any or all proposals; and to select the firm which, in the sole opinion of the City , best meets the City’s needs.

The City also reserves the right to negotiate with potential Vendors so that the City’s best interests are served.

2.17 Advertising
Vendor shall no t advertise or publish the fact that the City has placed this order without prior written consent from the City , except as may be necessary to comply with a proper request for information from an authorized representative of a governmental unit or agency.

2.18 Trademarks
The City warrants that all trademarks the City requests the Vendor to affix to articles purchased are those owned by the City and it is understood that the Vendor shall not acquire or claim any rights, title, or interest therein, or use any of such trademarks on any articles produced for itself or anyone other than the City.

2.19 Right to Request Additional Information
The City reserves the right to request any additional information that might be deemed necessary during the evaluation process.

2.20 Right of Refusal
The City reserves the right to refuse any or all proposals in their entirety, or to select certain equipment or software products from various Vendor proposals, based on the best interests of the City.

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2.21 Proposal Preparation Costs
The Vendor is responsible for any and all costs incurred by the Vendor or subcontractors in responding to this request for proposal.

2.22 System Design Costs
The successful Vendor shall be responsible for all design, information gathering, and required programming to achieve a successful implementation. This cost must be included in the base proposal.

2.23 Pricing Eligibility Period
All Vendor proposals are required to be offered for a term not less than 180 calendar days in duration. A proposal may not be modified, withdrawn or cancelled by Vendor during the 180 -day time period following the time and date designated for the receipt of proposals. It is City’s intent to procure that software solution that meets the long-term needs for the City. The City, during the selection process, may decide to purchase a subset of the Vendor’s proposal components with the initial contract. The City requires that Vendors agree for a period of (3) years from the date of the Vendor’s proposal to honor software and services pricing established within the Vendor’s proposal response for Vendor proposed components which are not included in City ’s initial purchase. The price of the proposed components can only be increased by the Vendor during such time period by an amount equal to the annual CPI -U adjustment for the Los Angeles -Long Beach- Anaheim, CA region or 3%, whichever is less.

2.24 Additional Charges
No additional charges, other than those listed on the price breakdown sheets, shall be made. Prices quoted will include verification/coordination of order, all costs for shipping, delivery to all sites, unpacking, setup, installation, operation, testing, cleanup, training and Vendor travel charges.

2.25 Turnkey Solution
All prices quoted must in clude all hardware, equipment, software, and services necessary to make the system specified fully operational for the intent, function, and purposes stated herein. The City reserves the right to purchase hardware separately.

2.26 Data Storage
All City data must be stored within the United States.

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2.27 Purchase Quantities
The City reserves the right to purchase any quantities of hardware or software items bid without altering the unit purchase price upon award and throughout the contract period.

2.28 Rights to Pertinent Materials
All responses, inquires, and correspondence relating to this RFP and all reports, charts, displays, schedules, exhibits and other documentation produced by the Vendors that are submitted as part of the proposal shall become the property of the Ci ty upon receipt, a part of a public record upon opening, and will not be returned.

The City reserves the right to accept any proposal, to reject any or all proposals, to waive any irregularities in the proposal process and to accept any proposal in the best interest of the City.

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3. Proposal Response Format
To facilitate the analysis of responses to this RFP, the Vendor is required to prepare their proposals in accordance with the instructions outlined in this section. Vendors must respond in full to all RFP sections and follow the RFP format (section number ing, etc.) in their response. Failure to follow these instructions may result in rejection.

For each question asked in the RFP, the proposer shall provide in their response, the question asked and their answer using the section numbering of the RFP.

Proposals shall be prepared to satisfy the requirements of the RFP.

EMPHASIS SHOULD BE
CONCENTRATED ON ACCURACY, COMPLETENESS, AND CLARITY OF CONTENT. All parts, pages, figures, and tables should be numbered and labeled clearly. The proposal should be organi zed as follows:

Heading Title In addition to specified content,
provide
Proposal Signature Form
1 Executive Summary
2 Company Background Form A in attachment ERP
Software and Implementation
Services - Vendor Forms.docx
3 Application Software
4 Technical and Vendor Hosted / Cloud
Information
Form B in attachment ERP
Software and Implementation
Services - Vendor Forms.docx
5 Implementation Plan Form C in attachment ERP
Software and Implementation
Services - Vendor Forms.docx
6 Staffing Plan Form D in attachment ERP
Software and Implementation
Services - Vendor Forms.docx
7 Ongoing Support Services Form E in attachment ERP
Software and Implementation
Services - Vendor Forms.docx
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Heading Title In addition to specified content,
provide
8 Functional System Requirements Excel spreadsheet addendum to this RFP
9 Client References Form F in attachment ERP
Software and Implementation
Services - Vendor Forms.docx
10 Subscription and Maintenance Agreements
11 Exceptions and Deviations
12 Other Required Forms and Attachments
13 Addenda
Separate
Sealed
Document
Cost Proposal in separate sealed document.

Instructions relative to each part of the response to this RFP are defined in the remainder of this section.

Costs for the Vendor’s proposed solution should be submitted on the proposal pricing forms provided in the included Microsoft Excel pricing spreadsheet. Costs should include the complete costs for the solution including travel and operating costs.

Section references below (in parentheses) refer to the section numbers for your proposal submission.

3.1 Executive Summary (Section 1)
This part of the response to the RFP should be limited to a brief narrative not to exceed two (2) pages describing the proposed solution. The summary should contain as little technical jargon as possible and should be oriented toward non-technical personnel. The executive summary should not include cost quotations.

3.2 Company Background (Section 2)
Vendors must provide information about their company so that the City can evaluate the Vendor's stability and ability to support the commitments set forth in response to the RFP. In addition to providing responses to the following items, the Vendor must complete the Company Background ERP Software and Implementation Services City of Santa Maria, CA Issue date: 10/3/2022
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Form A found in attachment ERP Software and Implementation Services - Vendor Forms.docx to this RFP.

Information that Vendors should provide in this section are as follows:
• The company's background including a brief description (e.g., past history, present status, future plans, company size, etc.) and organization charts. • Audited financial information for the past TWO (2) completed fiscal years that includes income statements, balance sheets, and statement of cash flows. • Privately held companies wishing to maintain confidential financial information must provide information detailing the company’s long-term stability. Please provide a current Dunn & Bradstreet report (D&B) as part of the Vendor proposal response. • If the Vendor is proposing to use subcontractors on this project, provide a response to the Company Background Form for each subcontractor, Vendor relationship with that firm and the specific services and/or products that the subcontractor will be providing on the project. A complete list of subcontractors is required. The City has the right to approve all sub-contractors of the Vendor at any time.

3.3 Application Software (Section 3)
The Vendor is required to provide a general description of the application program product and how it will meet requirements of this RFP. This section must address, at a minimum, the following items:
• Describe your overall proposed technology solution.
• Describe the product direction for the company, including time frames. • Describe unique aspects of the Vendor's solution in the marketplace. • Describe components of the solution that are industry standards versus being proprietary to the Vendor.
• If the Vendor’s solution includes functionality for enterprise asset management (i.e. work order planning and execution, asset lifecycle management, etc.) please list it in this section.

If not, please list any enterprise asset management solutions your solution has existing interfaces/integrations with.

For all Third-party products:
• List all third-party products proposed,
• Reason that this product is a third -party product versus being part of the software Vendor’s solution, and
• Extent to which this third-party product is integrated with the Vendor’s solution.

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3.4 Technical and Vendor Hosted/Cloud Information
Please describe your vendor hosted model, including hosting, integration, minimum hardware requirements for computers, deployment model (dedicated servers, shared environment, etc.), impact to and requirements of the City’s network and bandwidth, and any partners that may be involved in service delivery.

The Vendor must complete the Technical and Vendor Hosting Requirements Form B found in attachment ERP Software and Implementation Services - Vendor Forms.docx. The information will be used in the evaluation process. Vendors should identify where conflicts may exist between their solution and current technologies being used in the City as described in this RFP in Section 2.4 Current Application Environment . As the City is exploring vendor -hosted / clo ud solutions, vendors should clearly define if their software product is a private or public vendor -hosted / cloud solution in the sections below.

Vendors shall describe the methods by which they secure the development of their product, the deployment of the solution(s), as well as their secure hosted policies and procedures. Include a SOC 2 report, FedRAMP certification or other security certifications, if available.

3.5 Implementation Plan (Section 5)
The Vendor is to provide an implementation plan in narrative format supported by an activity-level project plan (e.g., Microsoft Project, or Microsoft Excel work breakdown structure) that details the tasks and activities for implementation of the proposed solution. This implementation plan should include a narrative on the following elements using the subsection reference numbers below:
• Subsection 5.1: General Implementation Approach
• Subsection 5.2: Project Management Approach (as well as Form C Project Ma nagement Approach and Form F Staffing Plan in attachment ERP Software and Implementation Services - Vendor Forms.docx)
• Subsection 5.3: Data Conversion and Migration Plan
• Subsection 5.4: Data Analytics, Report and Form Development (as well as Form D Report Development in attachment ERP Software and Implementation Services - Vendor Forms.docx)
• Subsection 5.5: Integrations and Interfaces
• Subsection 5.6: Training (as well as Form E Training in attachment ERP Software and Implementation Services - Vendor Forms.docx)
• Subsection 5.7: Organizational Change Management Approach • Subsection 5.8: Testing
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• Subsection 5.9: Operational Redesign Approach
• Subsection 5.10: System Documentation and Manuals
• Subsection 5.11: Disaster Recovery Plan
• Subsection 5.12: Knowledge Transfer
The Vendor should include additional elements in the Vendor’s proposal response if the Vendor feels it may add value to the overall implementation.

It is expected that the Vendor will lead the efforts in each of the implementation areas de scribed below unless stated otherwise. Further details on what is to be provided as part of the Vendors proposed implementation plan are included in the following subsections.

3.5.1 General Implementation Approach (Subsection 5.1)
Provide a general overview of t he implementation approach you plan to use for City that includes addressing the following items:
• Provide a detailed work plan or schedule in a work breakdown structure format as part of the proposal response.
• Describe key differentiators of the approach as it relates to implementing a solution on time, within budget and with the ability to meet the needs of a diverse client like the City. • Describe how you conclude on a preferred implementation phasing of software modules.

What is your recommended approach for this implementation? • Describe your approach towards running parallel systems, if necessary.

Any unique tools, techniques, or methods that you use should be described in this section.

3.5.2 Project Management Approach (Subsection 5.2)
As part of any significant engagement, the City desires a project management approach based on the Project Management Institute’s Project Management Body of Knowledge (PMBOK). The City would expect responding Vendors to adhere to PMBOK standards as part of t he project. The City expects the Vendor to provide project management resources leading to the successful depl oyment of the system.

Briefly describe the contents and approach of each of these components:
• Project management plan
• Resource management plan
• Quality management plan
• Scope management plan
• Risk management plan
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• Budget management plan
• Change control plan
• Describe the approach to managing the project, such as a collaboration tool for document management,
The project manager will work as a team member with City of Santa Maria, CA ’s project team. This project manager can be an employee of the Vendor or a partner of the Vendor. In either case, the costs for the project manager should be clearly denoted in the pricing section of this RFP.

In addition to providing responses to the following items, the Vendor must complete the Project Management Approach – Form C, in attachment ERP Software and Implementation Services - Vendor Forms.docx and include it in this section of the response. • Provide an overall description of the Vendor project management approach towards this type of engagement and projected timing for major phases. • Provide a high-level work plan for achieving the successful deployment of your propo sed system.

3.5.3 Data Conversion and Migration (Subsection 5.3)
It is anticipated that data conversion will occur when migrating to the new application. The Vendor is expected to assist the City in the conversion of both electronic and manual data to the new system.

It is expected that the City will be responsible for data extraction from current systems and data scrubbing and data pre- processing and that the Vendor will be responsible for overall data conversion coordination, definition of file layouts, and data import and validation into the new ERP.

Please provide pricing for data conversions in the associated Microsoft Excel pricing spreadsheet. • Describe your general approach towards data conversion and how you would work with the City to conclude on the data structure for the new system including what should be converted, based on industry standards and best practices. • Please describe your organization’s recommended approach toward retention of legacy data.

3.5.4 Data Analytics, Report and Form Development (Subsection 5.4) For specific reporting requirements, it is anticipated that the Vendor will take the lead on developing any reports required as part of the initial deployment of the system. The Vendor is expected to provide specialized knowledge and information to the City staff during the development of needed reports, via technical training on the tools used for report d evelopment, database schema and architecture, etc. In addition to providing responses to the following items, the Vendor must complete the Report Development Form D, in attachment ERP Software and Implementation Services - Vendor Forms.docx of this RFP and include it in this section of the response.

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Provide information on your reporting approach including:
• A representative list of out-of-the-box reports
• Description of various methods of reporting including Business Intelligence • Methods for the City to identify, specify, and develop required custom City reports during the implementation.

3.5.5 Integrations and Interfaces (Subsection 5.5)
It is expected that information generally would need to be entered only once into the system.

Modules within the system should b e integrated in real -time with each other such that batch processes are not required to transfer information from one area of the system to another unless that is the preference of the City. Existing City interfaces between core modules that may currently exist (e.g., AP posting to GL) or shadow systems that will likely be replaced are not included as they are assumed to be included in an integrated ERP System.

The Microsoft Excel pricing sheet contains a listing of current and/or desired application interfaces.

Please provide pricing for interface development in the associated Microsoft Excel pricing spreadsheet.

In addition:
• Describe the extent to which the various modules are integrated together versus being purchased separately and interfaced
• Describe your approach towards interfacing and integration with other solutions including use of specific tools, methods and standards.
• Describe data exchange standards (e.g., XML, Web Services, or EDI) supported or provided by your product.
• As it pertains to the City’s current technical environment described previously, identify potential issues for integrating with specific technologies that are used within the City. • If local customizations are made, do you provide any tools or assistance to easily incorporate customizations into new version/releases of your software? The Microsoft Excel pricing spreadsheet contains a listing of desired City application interfaces and their likely need in a future integrated environment. Provide pricing for interfaces in the associated Microsoft Excel pricing spreadsheet and explain how the integration maps the data from the old system to the new system.
• Describe your approach to interfacing City applications listed with a migration plan of ‘interface’ in section 2.5. If you have experience integrating with these systems, include those references on the reference forms provided in this RFP.

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3.5.6 Training (Subsection 5.6)
In addition to providing responses to the following items, the Vendor must complete the Training Form E in attachment ERP Software and Implementation Services - Vendor Forms.docx of this RFP and include it in this section of the response.
• End User Training Approach: All end-user and technical training will be performed through implementation and be performed by the Vendor. End-user implementation training will be provided by the Vendor and include joint participation by the relevant City process owner team lead supporting the process area in the new software system.

Technical Implementation training will include training for City IT staff on the technologies required to support the new ERP system.
• Train the Trainer Approach: The Vendor will incorporate a “train the trainer” approach where only key City team leads will be trained through implementation on their modules and then they will train the remainder of City staff in their respective areas. o Specify expected number of training documents to be created o Specify responsibility of producing training materials, including both manuals, on- site help, and video support.

The Vendor should provide an overall description of the proposed training approach, including the following:
• Suggested approach (train-the-trainer, end-user, hybrid) • Suggested timeframes in which training will be conducted • The Vendor must list the nature, level, and amount of training to be provided for both options in each of the following areas:
• Technical training (e.g., programming, operations, etc.) • User training
• Other staff (e.g., executive level administrative staff) • Types of training documentation to be developed
• Ability to provide recordings of trainings
• Opportunities for on-going training.

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3.5.7 Organizational Change Management Approach (Subsection 5.7) The City recognizes that a movement from the current environment to a new solution will require an active change management program. The Vendor should clearly identify their approach towards Organizational Change Management including any unique approaches or tools that will be used.

3.5.8 Testing (Subsection 5.8)
The Vendor should describe their recommended approach to the following types of testing that are anticipated to be performed on the project and the type of assistance they anticipate providing to the City related to such testing:
• System testing
• Integration testing
• Stress/performance testing
• User acceptance testing (UAT)
• Security testing, penetration testing, vulnerability assessments

3.5.9 Operational Redesign Approach (Subsection 5.9)
With the deployment of a new application, the City wishes to take advantage of capabilities within the software that provide support for operational improvements. Vendors are requested to describe their approach towards operational redesign including discussion on the optimal time in which to conduct redesign as it relates to implementation of the new software.

In addition, describe your organization’s capabilities to assist in a City-wide redesign of the chart of accounts to best leverage the capabilities of the system in order to meet the City’s overall financial tracking and reporting objectives.

3.5.10 System Documentation and Manuals (Subsection 5.10) The Vendor is expected to provide user manuals and online help for use by the City as part of the initial training and on- going operational support. Additionally, the Vendor is expected to provide technical documentation.
• Describe what documentation (user guide, technical guide, training materials, etc.) is available on the system proposed and any related costs. • Describe what types of documentation you anticipate developing during the project.

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3.5.11 Disaster Recovery Plan (Subsection 5.11)
Please describe the services you provide around business continuity and disaster recovery, if any, as part of your proposed solution.

3.5.12 Knowledge Transfer (Subsection 5.12)
The Vendor should describe their process for ensuring that a transf er of knowledge occurs back to City staff such that staff can support and maintaining the application in the most proficient manner once the Vendor implementation engagement is complete.

Include:
• Methodologies to ensure that training has been successful and City staff know how to use the new system.
• Approach to ensuring that City personnel can operate, maintain, configure, and modify the new system, including operation of the testing tools, supporting infrastructure, and security.

3.6 Functional System Requirements (Section 6)
Vendors will use the Microsoft Excel spreadsheet to provide responses to the requirements of this RFP must be provided in this section of the Vendor's response. Vendors must use ERP Software and Implementation Services - Specifications.xlsx addendum to this RFP and attach added explanation pages as necessary. Please include any costs associated with modifications in the Microsoft Excel pricing spreadsheet. Please note: The response to these requirements must be submitted in the exact format with no additional macros, formulas, new columns, modifications, passwords. Failure to adhere to this requirement can result in disqualification of the entire proposal.

3.7 Staffing Plan (Section 7)
In addition to providing responses to the following items, the Vendor must complete the Staffing Plan Form – F in attachment ERP Software and Implementation Services - Vendor Forms.docx to this RFP and include it in this section of the response. • The Vendor must detail the type and amount of implementation support to be provided (e.g., number of personnel, level of personnel, time commitment, etc.). Include resumes for all personnel that will be assigned to the project. If the Vendor is using a subcontractor, include information on subcontracting staff being used and their specific role on the project.

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• Please provide an overall project organizational structure for City staff involvement during the project . Identify the roles and responsibilities of each component of this structure.

3.8 Ongoing Support Services (Section 8)
In addition to providing responses to the following items, the Vendor must complete the Ongoing Support Services Form – G in attachment ERP Software and Implementation Services - Vendor Forms.docx to this RFP and include it in this section of the response. • Please specify the nature and conditions of any post -implementation support options including:
o Post-go live support that is included in the proposal response o Onsite support (e.g., system tuning, application configuration, interface issues, report development, network optimization, user training and tips to optimize the user experience)
o Telephone support,
o Help Desk services (If there is a service level agreement for you r help desk, provide a copy with your RFP response.) Specify days, hours and escalation options
o Toll-free support line
o Users groups
o Online knowledgebase (i.e. – how it is accesses, who updates it, etc.) • Describe your maintenance programs and options with associated pricing. • Please describe any ongoing utility billing management services that you provide (e.g. annual rate updates, etc.)

3.9 Client References (Section 9)
The Vendor must provide at least three references (maximum five) from clients within the last 5 years that are similar in size and complexity to the City . The format for Vendor references is provided in Client Reference form in the attachment ERP Software and Implementation Services - Vendor Forms.docx. In addition, the City requests a listing of all municipal clients, and at least one reference must be a vendor hosted / cloud deployment.

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3.10 Subscription and Maintenance Agreements (Section 10) Sample subscription and maintenance agreements must be provided in this part of the Vendor's response for all components of the recommended solution. Indicate the basis on how subscription fees are determined.
• How are local customizations or configurations maintained when installing new releases of the Vendor’s software? Describe the level of support that the Vendor provides to the City for identifying, validating, and testing scripts related to the latest software release.

3.11 Exceptions and Deviations (Section 11)
If the Vendor finds it impossible or impractical to adhere to any portion of these specifi cations and all attachments, it shall be so stated in its proposal, with all deviations grouped together in a separate section entitled, “ Exceptions/deviations from P roposal Requirements.” This section will be all - inclusive and will contain a definition st atement of every objection or deviation with adherence to specific RFP sections. Objections or deviations expressed only in other parts of the proposal, either directly or by implication, will not be accepted as deviations, and the Vendor in submitting a proposal, will accept this stipulation without recourse.

3.12 Other Required Forms and Attachments (Section 12)
Provide all forms in this section and ERP Software and Implementation Services - Vendor Forms.docx.

This section contains various forms for submissio n with the Vendor’s proposal. The intent of providing such forms is to ensure comparability between proposals. Included in this section are the following forms:
• Included in attachment ERP Software and Implementation Services - Vendor Forms.docx:
o Proposal Signature Form
o Non-Collusion Affidavit
o Minimum Criteria
o Company Background Form*
o Technical and Vendor Requirements Form
o Project Management Approach Form
o Report Development Form
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o Training Form
o Staffing Plan Form
o Ongoing Support Services Form
o Client Reference Form
• For Vendors who are proposing a hosted solution, supply a copy of your Independent Service Auditor’s Opinion Letter from your most recent audit for SSAE 16 Type II. * If a vendor includes a sub -contractor in their proposal response, each sub -contractor must complete this form.

3.13 Addenda (Section 13)
Include all original, signed copies of addenda in this section.

3.14 Separate Cost Proposal
One (1) electronic copy of the cost proposal must be submitted in a separate file, with the technical proposal. The electronic copy of the cost proposal response shall include the completed cost worksheets that have been provided in Microsoft Excel.
• The City will not consider time and materials pricing. Vendors shall provide firm and fixed pricing based o n the functionality described. For each item, indicate if the cost is one-time, annual, or other.
• The Vendor shall provide price information for each separate component of the proposed solution, as well as the costs of any modifications necessary to fully comply with the RFP specifications.
• In the event the product or service is provided at no additional cost, the item should be noted as "no charge" or words to that effect.
• In the event the product or service is not being included in the Vendor proposal, the item should be noted as "no bid".
• Vendors shall provide all pricing alternatives in these cost sheets. • Vendor shall provide prices in U.S. dollars.
• Vendor shall make clear the rationale and basis of calculation for all fees. • Vendors shall show separate subtotals for the required elements of the proposed solution, and for any layers of optional elements.

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In presenting software subscription fees, the Vendor shall:
• Explain all factors that could affect subscription fees, • Indicate which product versions, operating platform(s), and machine classes are included for each price,
• Indicate whether a product is for “server” or “client,” as applicable; and, • Make clear the extent of any implementation services that are included in the subscription fees (installation, configuration, training, etc.) To the extent possible, Vendors shall show any applicable discounts separately from the prices for products and services. The Vendor is encouraged to present alternatives to itemized costs and discounts, such as bundled pricing, if such pricing would be advantageous to the City.

The City reserves the right to pursue direct purchase of all items and services proposed, as well as to obtain independent financing.

Pricing Format
Please complete the pricing forms that have been provided in the associated Microsoft Excel pricing spreadsheet ERP Software and Implementation Services – Pricing Forms. It is the responsibility of the Vendor to ensure the accuracy of the pricing provided as part of your response. Any errors in providing an accurate price response due to inaccuracies in the provided templates are the sole responsibility of the responding Vendor. If there is not enough space to describe the pricing on these forms, please attach a separate pricing page and provide the pricing information in the same type of format so that it is easy to understand. The City requests a firm, fixed price for each of the components described below that are included on the attached Microsoft Excel pricing spreadsheet as separate tabs:
• Vendor Checklist (including Hosting/Licensing Model, Travel & Lodging Costs, and Discount) • Proposal Summary (no direct input required)
• Module Summary (no direct input required)
• Application Software
• Other Software
• Hardware
• Implementation Services
• Data Conversion
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• Train-the-Trainer Training
• Interfaces
• Other Implementation Services
• Managed Services

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4. Functional Requirements

4.1 Introduction
The requirements in this section contain the desired functionality of the requested software solution.

Identified in the attached Excel spreadsheet ERP Software and Implementation Services - Specifications.xlsx are the requirements/specifications that must be addressed by the Vendor's proposal.

Vendors must replace cells G2 in the instructions tab with the Vendor’s Company Name which will be repeated for each subsequent module.

Vendors should review the specifications listed and respond with their avai lability within the Vendor’s proposed solution. The responses should be entered under the Availability column of each form as follows:

Y
Functionality is provided out of the box through the completion of a task associated with a routine configurable area that includes, but is not limited to, user-defined fields, delivered or configurable workflows, alerts or notifications, standard import/export, table driven setups and standard reports with no changes. These configuration areas will not be affected by a future upgrade. The proposed services include implementation and training on this functionality, unless specifically excluded in the Statement of Work, as part of the deployment of the solution.

R Functionality is provided through reports generated using proposed Reporting Tools. Costs for this report MUST be included in the proposal.

T
Functionality is provided by proposed third party functionality (i.e., third party is defined as a separate software vendor from the primary software vendor). The pricing of all third -party products that provide this functionality MUST be included in the cost proposal.

M
Functionality is provided through customization to the application, including creation of a new workflow or development of a custom interface, that may have an impact on future upgradability.

The pricing of all proposed modifications MUST be included in the proposal. Indicate in the comments if this modification will be impacted by future software updates .

F Functionality is provided through a future release that is to be available within 1 year of the proposal response.

N Functionality is not provided.

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Use the Cost column for “M” or “R” responses to estimate the cost to be incurred by the City to secure the specification, if necessary. Use the Comment column to provide additional comments pertaining to your response for that item.

The Required Product(s) column is to be used to specify what product (e.g., product name or software module) is proposed.

Vendors proposing a multi -product solution should complete a General and Technical module specification response for each product.

Note: The response to these requirements should be provided in the exact format as provided (e.g., no additional macros, formulas, additional columns, modifications, passwords, etc.). Failure to do so can result in disqualification of the entire proposal.

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5. Minimum Criteria
As noted in Section 4, of this RFP, proposed solutions MUST meet all the following requirements.

Proposals not meeting these requirements will be rejected. Vendors should acknowledge acceptance of these terms and include the following checklist in their RFP response.

Minimum Criteria Checklist Comply?
□ Minimum Client Software Installations
Must have provided software for at least three previous municipalities of similar size, complexity, and scope.

□ RFP Response
RFP response is submitted by the due date and time.

□ Response Authorization
The RFP response is signed by an authorized company officer.

□ Authorization to do business in State of California
The vendor must be authorized to do business in the State of California.

□ Response Completeness
Vendor complied with all instructions in the RFP and provided a response to all items requested with sufficient detail, which provides for the proposal to be properly evaluated. Any deficiencies in this regard will be determined by City of Santa Maria’s Purchasing Agent or his/her designee to be either a defect that the Agent will waive or that the proposal can be sufficiently modified to meet the requirements of the RFP.

□ Vendor Hosted / Cloud Solution
Vendor responses must be vendor hosted and/or in the cloud. T he City will not consider an on-premises proposal.

CONFIDENTIAL INFORMATION 1

MASTER SERVICES AGREEMENT
This Master Services Agreement (this “Agreement”), dated as of March __, 2024, is made by and between City of Santa Maria, California, a California Municipal corporation and charter city with its principal office located at 110 East Cook Street, Santa Maria, California 93454, United States of America (“Client” or “City”) on the one hand , and Cognizant Worldwide Limited, a United Kingdom limited liability company with its principal office located at 280 Bishopsgate, Liverpool Street, London EC2M 4AG, United Kingdom (“CWW” and “ Cognizant Technology Solutions U.S. Corporation, shall execute this Agreement together with Cognizant solely for the purpose of acknowledging that CTS US is authorized to perform for Cognizant any Services to be provided to Client in the United States of America pursuant to a relevant Statement of Work (as defined below), which CTS US or another U.S. Affiliate may also execute for such purpose as provided in Section 1.1For the purposes of this Agreement, Client and Cognizant may each be referred to as “Party” or, collectively, as the “Parties.” The Parties, intending to be legally bound, hereby agree as follows:

1. SER
VICES.

1.1 Direct Services. Cognizant and Client will develop and enter into one or more statements of work incorporating a description of the specific services to be provided, each in a form mutually agreed by the Parties (a “Statement of Work ” or “SOW”), incorporated herein as part of this Agreement. Each Statement of Work will set forth, among other things, project scope, various project activities and tasks to be performed by the Parties , and roles and responsibilities of the Parties. Cognizant shall provide to Client the following types of services as, and to the extent, described in each Statement of Work: (i) the management of certain business and IT operational services, which may be performed either onsite or from remote locations (“Managed Services ”); (ii) certain consulting, development, integration and or other support services provided in addition t
o the Managed Services (“ Professional Services”); and (iii) any other services described as Cognizant’s obligation in a Statement of Work, (collectively the “Services”). In addition, Cognizant will provide to Client certain results or proceeds of the Services that are defined as deliverables in each Statement of Work (collectively, the “ Deliverables”). Each Statement of Work sha ll
specifically identify this Agreement and indicate that it is subject to the terms hereof and be executed by Client and Cognizant. Unless otherwise set forth herein or expressly identified in the SOW as a modification to a specified provision of this Agreement, t o the extent there are any conflicts or inconsistencies between this Agreement and any Statement of Work , the provisions of this Agreement shall govern and control. Cognizant may engage any Affiliate (as hereinafter defined) of Cognizant to provide Services and Deliverables to Client and any Affiliates of Client for Cognizant under this Agreement. For SOWs executed in connection with work to be performed for Client in the United States of America, and solely to the extent that employees of a U.S. - domiciled Cognizant Affiliate who are foreign skilled workers are required for the provision of Services by Cognizant in connection with such SOW, such Cognizant Affiliate may also execute s
uch SOW solely for the purpose of providing Services to Client for Cognizant. Any Affiliate of Cognizant may itself provide Services directly to Client and any Affiliates of Client under this Agreement by executing SOWs in its own name, exclusive of Cognizant, and only for the purposes of any such SOW(s), shall be considered “Cognizant” as that term is used in this Agreement. An y
A
ffiliate of Client may enter into SOW(s) with Cognizant or any Affiliate of Cognizant and, only for the purposes of any such SOW(s), shall be considered “Client” as that term is used in this Agreement. As used herein, the term “Affiliate” means any entity that controls or is controlled by or is under common control with Cognizant or Client, as applicable, where “control” means possessing, directly or indirectly, the power to direct or cause the direction of the management ,

ATTACHMENT C

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policies and operations of such entity, whether through ownership of voting securities, by contract or otherwise.

1.2 Deliverables and Acceptance. Deliverables, if any, under this Agreement will be as set forth under any SOW. Each SOW will describe, if applicable, the Deliverables that Cognizant is obligated to furnish to Client hereunder, the acceptance criteria for each of the Deliverables (the “Acceptance Criteria”) and the completion criteria, if any, to signify completion of each phase of a project. Client shall review, evaluate and/or test, as the case may be, each of the Deliverables within the applicable time period set forth in a SOW (with respect to each Deliverable, the “Acceptance Period” ) to determine whether or not such Deliverable satisfies the applicable Acceptance Criteria in all material respects. If Client does not furnish a written notice to Cognizant specifying that a Deliverable has failed to satisfy its Acceptance Criteria prior to the end of the Acceptance Period therefor and/or if Client commences using the Deliverables commercially or in a production environment, then Client will be deemed to have accepted such Deliverable. If any Deliverable fails to satisfy its Acceptance Criteria, then Client will notify Cognizant in writing specifying the respects in which such Deliverable does not conform to the applicable Acceptance Criteria and what modifications are necessary to make it conform thereto. Thereafter, Cognizant shall use its diligent commercially reasonable efforts to modify such Deliverable to so conform and the Deliverable will be resub mitted for acceptance by Client. If, after repeated attempts, Cognizant is unable to remedy any non- conforming portion of any Deliverable, Client may terminate pursuant to Section 12.2 herein.

2. PROGRAM SCHEDULE; CHANGES.

2.1 Program Schedule; Changes. Cognizant understands that the successful installation, testing, implementation, integration and operation of the Services shall be accomplished by a cooperative effort. To most effectively manage this process and as applicable to the Services , Cognizant shall designate a single representative to act as program manager, who shall have the authority to act on behalf of Cognizant on all matters pertaining to this Agreement. Client shall also designate a single individual to act as the Client Project Manager who shall have authority to act on behalf of the C lient. Each Statement of Work will set forth the projected work effort and schedule applicable to the Services. Cognizant will develop an overall schedule and timeline for implementation and integration of the Statement of Work. To the extent applicable to the Services in the SOW, the draft project plan will be provided during the Plan Stage and finalized during the Architect & Configure Stage. Any change to the project schedule must be agreed to in writing by authorized representatives of both Cognizant and the C lient. Tasks and due dates will be delivered with the project plan. The Client Project Manager and Cognizant Program Manager shall consult with each other about project management and technical and design decision making affecting the project s chedule. The Cognizant Program Manager shall at all times maintain the project schedule so that it is up to date and available to the C lient Project Manager reflecting current project status and due dates, and shall provide such regular and ad hoc status reporting as is required under the Statements of Work, and such other information as Client may reasonably request from time to time.  The Cognizant Program Manager, together with such other personnel as requested by the Client Project Manager, shall participate in periodic status review meetings as requested by the City Project Manager. Such meetings shall be held virtually or at Client facilities, unless otherwise agreed by the Client Project Manager.  All statements and agreements concerning time are based upon information available and circumstances existing at the time made, and each Statement of Work is subject to equitable adjustment upon any material change in such information or circumstances, the occurrence of an excusable delay (as provided for in Section 2.2 hereof) or upon modification of the scope, timing or level of work to be performed by Cognizant. Either Party will be entitled to propose changes. It is mutually acknowledged that any

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such change may affect the fees or charges (“Charges”) payable to Cognizant and/or the project schedule. Neither Party shall have any obligation respecting any change until an appropriate written change order or amendment to the applicable Statement of Work is agreed to, executed and delivered by both Parties.

2.2 Excusable Delays and Failures . Cognizant will be excused from delays in performing, or from a failure to perform, hereunder to the extent that such delays or failures result from causes beyond Cognizant’s reasonable control, excepting to the extent that delays are solely caused by Cognizant’s employees or Subcontractors. Without limiting the generality of the foregoing, Client acknowledges that Client ’s failure or unreasonable delay in furnishing requested information, equipment or access to facilities, unreasonable delays or failure by Client in completing tasks required of Client or in otherwise performing Client ’s obligations hereunder or under any Statement of Work and any assumption contained in a Stat ement of Work which is untrue or incorrect will be considered an excusable delay or excusable failure to perform hereunder and may impede or delay completion of the Services. Client further acknowledges that such delays or failures may result in additional charges for the Services.

3. PAYMENT.

3.1 Program Charges and Reimbursable Items. Client shall pay to Cognizant the Charges set forth in each Statement of Work,
which such Charges shall be subject to adjustment by
Cognizant annually unless otherwise expressly agreed in the applicable Statement of Work. Client will also reimburse Cognizant for all reasonable out -of-pocket travel, living and other ancillary expenses paid or incurred by Cognizant in connection with the Services and any other reimbursable items set forth in each Statement of Work . Cognizant will have no obligation to perform any Services when any undisputed amount required to be paid by Client is overdue and unpaid beyond forty-five (45) calendar days past the date such amount is due. Any suspension of Services by Cognizant as a result of Client ’s failure to make payment as required will extend the due dates of Deliverables and other Services to the extent impacted by such suspension or delay.

3.2 Invoices; Payments. Cognizant will invoice Client for all Charges and reimbursable items payable to Cognizant on a monthly basis or otherwise in accordance with the schedule set forth in the relevant Statement of Work as such payments are due. Client will pay the undisputed invoiced amount in full within forty-five (45) days of the date of each invoice; provided that the Client may withhold amounts disputed reasonably and in good faith pending resolution of such dispute. Client will pay interest, at a rate equal to the lesser of 1.5% per month (or part thereof) or the maximum legal rate permitted, on the amount shown on any invoice that is paid later than forty-five (45) days after the date of the invoice, other than such amounts that are disputed in such good faith during the pendency of the relevant dispute. All amounts hereunder will be invoiced and paid in United States Dollars unless otherwise set forth in an applicable SOW.

3.3 Taxes. All Charges are exclusive of taxes. Client shall pay amounts equal to any federal, state or local sales, use, excise, privilege, value added, goods and services or other taxes, duties, imposts, levies or similar assessment relating to the Services and Deli verables provided by Cognizant hereunder, exclusive of taxes based on Cognizant’s net income or net worth. Client and Cognizant agree to cooperate on any tax matters arising from the provision of the Services and Deliverables under this Agreement. Both Parties agree to provide reasonable assistance to the other in order to mitigate any taxes applicable to the Services and Deliverables provided to

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Client or to payments made pursuant to this Agreement with respect to the Services and Deliverables.

4. OBLIGATIONS OF THE PARTIES.

4.1 Working Environment. For any Services to be provided by Cognizant at any of Client’s sites, Client shall provide Cognizant ’s personnel with (i) a suitable and adequate work environment, including space for work and equipment for performance of the Services; (ii) access to and use of Client ’s facilities and relevant information, including software, hardware and documentation; and (iii) assistance to such personnel in a timely manner by promptly correcting any hardware or software problems that would affect the performance of Services; and ( v) any other items set forth in each Statement of Work.

4.2 Client’s Personnel Commitment. Client will ensure that all Client personnel who may be necessary or appropriate for the successful implementation of the Services will, on reasonable notice, (i) be available to assist Cognizant ’s personnel by answering business, technical and operational questions and providing requested documents, guidelines and procedures in a timely manner; (ii) participate in the Services as outlined in the Statement of Work ; (iii) participate in progress and other Service related meetings; (iv) contribute to software and system testing; and (v) be available to assist Cognizant with any other activities or tasks required to complete the Services in accordance with the Statement of Work.

4.3 Export Control. Client agrees to notify Cognizant of any requirements for Deliverables or any other technology, technical data or information to which Cognizant will have access as a result of the Services that, in any case, will subject the Deliverables or the other technology, technical data or information to control under applicable export regulations under any classification other than EAR99 (or its non- U.S. equivalent) and, in such event, Client will (i) identify to Cognizant the applicable regulations (e.g. the United States Export Administration Regulations (“EAR”) or the International Traffic in Arms Regulations (“ITAR”)) and classifications (e.g. ECCN) and (ii) follow such guidelines as Cognizant may communicate to Client that reasonably are required to avoid violations. Each Party acknowledges and agrees that to the extent that any tangible or intangible technical data provided under this Agreement is subject to US export laws and regulations, such Party will not use, distribute, transfer, or transmit technical data provided by the other Party under this Agreement except in compliance with US export laws and regulations. Notwithstanding the foregoing, C lient agrees that it will not provide C ognizant with any technology, technical data or information that is subject to control under the ITAR. In the event that Client wishes to provide Cognizant with ITAR-controlled technology, technical data or information, Client will notify Cognizant in writing of such intent, and the Parties agree to cooperate to determine the appropriate agreements and controls, if any, required before Client makes such disclosure.

4.4 FCPA. Neither Party shall take any action in connection with the performance of its obligations under this Agreement that violates the Foreign Corrupt Practices Act, as amended, and the rules and regulations thereunder in any manner that has a material adverse i mpact on the other Party. To the extent that any of the Services or Deliverables cannot be performed or provided without violation of any law, regulation, or other control, then Cognizant shall not be obligated to provide the same and the applicable Statement of Work shall be amended accordingly.

4.5 Work Authorization/HR Compliance/Relationship Matters . In the event that it is necessary for Cognizant to obtain visas or work permits for Cognizant personnel, Client will

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cooperate with Cognizant by taking all reasonably necessary actions to facilitate Cognizant’s efforts, including, but not limited to, providing, and hereby consents to Cognizant providing to immigration authorities, documentation indicating the nature and location of the work to be performed, the necessity of the work to be performed, and other documentation as may be reasonably required and related to this Agreement (including the existence and terms of this Agreement and the identity of the Parties hereto ), and posting such notices as may be legally required (including any legally required notice posting at Client sites from which the parties contemplate services being provided by Cognizant personnel who are foreign skilled workers) .

Notwithstanding anything herein to the contrary, Client hereby authorizes Cognizant to use Client’s name and/or logo to internally (within Cognizant) or externally reference to Client as a Cognizant customer and to describe the services provided to Client , subject to Client’s prior written approval.

5. OWNERSHIP.

5.1 Ownership of Developed IP . Unless otherwise agreed in an SOW, Cognizant agrees that, upon Client’s payment in full, the software or other works of authorship developed by Cognizant or its Affiliates specifically for Client as a Deliverable or a part of a Deliverable, as set forth in a Statement of Work (“ Developed IP”) shall be the property of, and ownership shall vest in, Client. Developed IP does not include Cognizant Confidential Information, Cognizant Proprietary Intellectual Property (as defined below), any Third Party Items, or any derivative of the foregoing, that may be incorporated into a Deliverable. Cognizant agrees to take, at Client’s cost and expense, all actions requested by Client which are reasonably necessary to assure the conveyance to Client of the foregoing rights to the Developed IP.

5.2 Residual Rights. Notwithstanding anything to the contrary herein, Cognizant, Cognizant Affiliates, and their respective employees and agents shall be free to use and employ any Residual Information. “ Residual Information” means the general knowledge, ideas, know -how, experience, and techniques that would be retained in the unaided memory of an ordinary person skilled in the art, not intent on appropriating the proprietary information of the disclosing party.

Nothing in this paragraph, however, shall be deemed to grant a license under Client’s registered intellectual property rights.

5.3 Cognizant Proprietary Intellectual Property . Client acknowledges that Cognizant personnel may utilize proprietary software, methodologies, tools, specifications, drawings, sketches, models, samples, records, documentation, works of authorship, creative works, ideas, know-how, research results, data or other materials which have been or are originated, developed, licensed, purchased, or acquired by Cognizant or its Affiliates or subcontractors (collectively, “ Cognizant Proprietary Intellectual Property ”); which constitutes Cognizant Confidential Information. Client agrees that Cognizant Proprietary Intellectual Property and Residual Information, any derivatives of Cognizant Proprietary Intellectual Property or Residual Information, is the sole property of Cognizant (or its licensors) and that Cognizant (or its licensors) will retain sole and exclusive title to and ownership thereof. If any Cognizant Proprietary Intellectual Property owned by Cognizant is embedded in a Deliverable, Cognizant grants to Client a worldwide, royalty free, non -exclusive, transferable, perpetual license to use, execute and perform such Cognizant Proprietary Intellectual Property as a functional element of the applicable Deliverable, subject to any additional terms or limitations set forth in the applicable Statement of Work, and provided that no portion of the Cognizant Proprietary Intellectual Property is separated or unbundled from the applicable Deliverables or used as a stand-alone product or development tool. Except as expressly provided in the foregoing sentence, nothing contained in this Agreement or otherwise shall be construed to grant to Client any right, title, license or other interest in, to or

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under any Cognizant Proprietary Intellectual Property (whether by estoppel, implication or otherwise). Any license to Cognizant Proprietary Intellectual Property that is not embedded in Deliverables or that is commercially available will be pursuant to a s eparate license agreement between Client and Cognizant (or its licensor).

5.4 Client Provided IP and Third Party Items. Client grants Cognizant and its Subcontractors a non -exclusive, paid -up license to use, execute, reproduce, distribute, and prepare derivative works of Client software and third party software licensed to Client as reasonably required to perform Services. Cognizant shall obtain Client’s prior written consent before embedding in Deliverables or installing in Client’s environment any proprietary third party tools or applications. If any third party tools, applications, utilities and cloud infrastructure are distributed, resold, or provided to Client in connection with this Agreement (collectively, “ Third Party Items”), such Third Party Items shall be provided AS-IS and may be made available to Client under a separate agreement between Client and the licensor of the Third Party Item or made available to Client by Cognizant under a separate agreement or pass -through terms set forth in an SOW, which shall apply to the relevant Third Party Item(s) in lieu of any of the ter ms of this Agreement. Notwithstanding anything to the contrary herein, Client’s use of each open- source component incorporated by Cognizant into a Deliverable will be governed by, and is subject to the terms and conditions of the applicable open-source license.

5.5 Installation of Tools. Cognizant may use certain Cognizant owned or licensed Tools (the “Tools”), including those set forth in the applicable SOW in connection with its performance of the Services. The Tools are Cognizant Proprietary Intellectual Property and are not part of any Deliverable. As between Cognizant and Client, Cognizant is the sole owner of the Tools, together with all modifications, enhancements and changes to the Tools and the information generated by any of the foregoing. Client consent s to Cognizant’s installation of the Tools onto Client’s systems. Only Cognizant may install, configure, control, or grant access to the Tools. Client agrees that Cognizant may uninstall and remove the Tools at any time, and that the consent set forth in this paragraph is not a software license or subscription agreement. Cognizant will use the Tools as installed on Client’s systems solely to perform the Services for Client.

6. CONFIDENTIAL INFORMATION.

6.1 Confidentiality Obligations. For a period of three (3) years from the date of disclosure of the applicable Confidential Information (as hereinafter defined), Client and Cognizant shall each (i) hold the Confidential Information of the other in trust and confidence and avoid the disclosure or release thereof to any other person or entity by using the same degree of care as it uses to avoid unauthorized use, disclosure, or dissemination of its own Confidential Information of a similar nature, but not less than reasonable care, and (ii) not use the Confidential Information of the other Party for a ny purpose whatsoever except as expressly contemplated under this Agreement or any Statement of Work. Except with the express written consent of the other Party, each Party shall disclose the Confidential Information of the other Party only to those of its and its affiliates’ employees , officers, directors, subcontractors, agents or representatives having a legitimate need to know the information for the purposes of this Agreement (“ Representatives”) and shall take all reasonable precautions to ensure that such Representatives comply with the provisions of this Section 6.1.

6.2 Definition. The term “Confidential Information” shall mean any and all information or proprietary materials other than Personal Information (as defined in Exhibit A attached hereto) (in every form and media) not generally known in the relevant trade or industry and which has been or is hereafter disclosed or made available by either Party (the “disclosing party”) to the other (the

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“receiving party”) in connection with the efforts contemplated hereunder, including (i) all trade secrets, (ii) existing or contemplated products, services, designs, technology, processes, technical data, engineering, techniques, methodologies and concepts and any information related thereto, and (iii) information relating to business plans, sales or marketing methods and customer lists or requirements.

6.3 Exceptions. The obligations of either Party under Section 6.1 will not apply to information (other than Personal Information) that (i) was in the receiving party’s possession at the time of disclosure and without restriction as to confidentiality, (ii) at the time of disclosure is generally available to the public or after disclosure becomes generally available to the public through no breach of agreement or other w rongful act by the receiving party, (iii) has been received from a third party without restriction on disclosure and without breach of agreement by the receiving party, or (iv) is independently developed by the receiving party without regard to the Confidential Information of the disclosing party. In addition, the receiving party may disclose Confidential Information as required to comply with binding orders of governmental entities that have jurisdiction over it; provided that the receiving party (a) gives the disclosing party reasonable written notice to allow the disclosing party to seek a protective order or other appropriate remedy, (b) discloses only such Confidential Information as is required by the governmental entity, and (c) uses commercially reas onable efforts to obtain confidential treatment for any Confidential Information so disclosed.

7. DATA PROTECTION

7.1 Data Protection. If and to the extent that the Services require Cognizant to process Client’s Personal Information, the Parties shall abide by the terms set forth under Exhibit A attached hereto.

8. INDEMNIFICATION.

8.1 Intellectual Property Rights Indemnity. Cognizant agrees to indemnify and hold harmless the Client from and against any costs and damages awarded against the Client by a court pursuant to a final judgment as a result of, and defend the Client against, claim s of infringement of a U.S. patent or registered copyright or misappropriation of any trade secret related to a Deliverable.

8.2 Intellectual Property Rights Exclusions.

Cognizant shall have no obligation under
Section 8.1 or other liability for any infringement or misappropriation claim resulting or alleged to result from: (i) modifications made other than by Cognizant or its Subcontractors, (ii) use of the Deliverables other than for Client’s internal purposes or in combination with any equipment, software or material not approved or provided by Cognizant or its Subcontractors, (iii) Client’s use or incorporation of materials not provided by Cognizant or its Subcontractors, (iv) the instructions, designs or specifications provided or approved by Client; (v) any software or other materials furnished by any third party other than Cognizant’s Subcontractors; or (vi) Client’s continuing the allegedly infringing activity after being notified thereof or after being informed and provided with modifications that would have avoided the alleged infringement.

8.3 Infringement Remedies. In the event of an infringement or misappropriation claim as described in Section 8.1 above arises, or if Cognizant reasonably believes that a claim is likely to be made, Cognizant, at its option and in lieu of indemnification, may: (i) modify the applicable Deliverables so that they become non- infringing but functionally equivalent; or (ii) replace the applicable Deliverables with material that is non-infringing but functionally equivalent; or (iii) obtain

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for Client the right to use such Deliverables upon commercially reasonable terms . In the event that none of the foregoing remedies are possible, then Cognizant may (iv) remove the infringing or violative Deliverables and refund to Client the fees received for such Deliverables that are the subject of such a claim based on a five (5) year straight line depreciation. This Section 8 sets forth the exclusive remedy and entire liability and obligation of each Party with respect to intellectual property infringem ent or misappropriation claims, including patent or copyright infringement claims and trade secret misappropriation.

8.4 Personal Injury and Property Damage Indemnity. Cognizant and Client each agree to indemnify, defend and hold harmless the other from and against any and all claims, actions, damages, liabilities, costs and expenses, including reasonable attorneys ’ fees and expenses, arising out of third party claims for bodily injury or damage to real or tangible personal property, not including software, data, and documentation, to the extent caused directly and proximately by the gross negligence or willful misconduct of the indemnifying party, its employees or agents.

8.5 Indemnification Procedures. The obligations to indemnify, defend and hold harmless set forth above in this Section 8 will not apply to the extent the indemnified party was responsible for giving rise to the matter upon which the claim for indemnification is based and will not apply unless the indemnified party (i) promptly notifies the indemnifying party of any matters in respect of which the indemnity may apply and of which the indemnified party has knowledge; (ii) gives the indemnifying party full opportunity to control the response thereto and the defense thereof, including any agreement relating to the settlement thereof, provided that the indemnifying party shall not settle any such claim or action without the prior written consent of the indemnified party; and (iii) cooperates with the indemnifying party, at the indemnifying party ’s cost and expense in the defense or settlement thereof. The indemnified party may participate, at its own expense, in such defense and in any settlement discussions directly or through counsel of its choice on a monitoring, non-controlling basis.

9. WARRANTY.

9.1 Limited Warranty. Cognizant warrants the following:

9.1.1 the applicable Services rendered hereunder will be performed by qualified personnel;

9.1.2 the Professional Services performed will substantially conform to any applicable requirements set forth in the Statement of Work for a period of thirty (30) days (the “Warranty Period”) following performance of such Professional Services; and

9.1.3 during the Warranty Period, the Deliverable(s) will materially conform to the corresponding product specifications set forth in the applicable Statement of Work for such Deliverable.

9.2 Remedies. Cognizant does not warrant that any Deliverable will operate uninterrupted or error-free, provided that Cognizant shall remain obligated pursuant to this Section 9. In the event that any Deliverable or Service fails to conform to the foregoing warranty in any material respect, the sole and exclusive remedy of Client will be for Cognizant, at its expense, to promptly use commercially reasonable efforts to cure or correct such failure. The foregoing warranty is expressly conditioned upon (i) Client providing Cognizant with prompt written notice of any claim thereunder prior to the expiration of the applicable Warranty Period, which notice must identify with particularity the non-conformity; (ii) Client’s full cooperation with Cognizant in all reasonable respects relating thereto, including, in the case of modified software, assisting Cognizant to locate

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and reproduce the non- conformity; and (iii) with respect to any Deliverable, the absence of any alteration or other modification of such Deliverable by any person or entity other than Cognizant or its Subcontractors.

9.3 Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR A SOW,

COGNIZANT DOES NOT MAKE OR GIVE ANY REPRESENTATION OR WARRANTY OR

CONDITION OF ANY KIND, WHETHER SUCH REPRESENTATION, WARRANTY, OR

CONDITION BE EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF

MERCHANTABILITY, QUALITY, OR FITNESS FOR A PARTICULAR PURPOSE OR ANY

REPRESENTATION, WARRANTY OR CONDITION FROM COURSE OF DEALING OR USAGE OF TRADE.

9.4 Responsibility of Client. In the event that Client asserts any claim for warranty services hereunder and such claim relates to any matter that is determined not to be Cognizant’s responsibility hereunder (including any problem with Client’s third party vendors, Client’s computer hardware or software that was not caused by any Services performed by Cognizant or its Subcontractors), Client will be responsible to pay Cognizant for all costs incurred for all correction or other services performed by Cognizant relating to such claim on a time and materials basis at Cognizant’s then standard billing rates.

10. LIMITATION OF LIABILITY AND REMEDIES.

10.1 Exclusion of Damages. In no event shall either Party be liable to the other Party or any other person or entity for any lost profits, special, exemplary, indirect, incidental, consequential or punitive damages or liabilities, or for any costs (including transition costs) associ ated with procuring substitute or replacement services, of any kind or nature whatsoever (collectively, “Indirect Damages”), whether in an action based on contract, warranty, strict liability, tort or otherwise, even if such Party has been informed in advance of the possibility of such Indirect Damages or such Indirect Damages could have been reasonably foreseen by such Party.

10.2 Total Liability. In no event shall Cognizant’s liability to Client or any other person or entity arising out of or in connection with this Agreement or the Services exceed, in the aggregate, the total fees paid by Client to Cognizant pursuant to the applicable Statement of Work in the twelve (12) month period preceding the last act or omission giving rise to any such liability.

11. EMPLOYEES.

11.1 No Employee Relationship. Neither Party’s personnel shall be deemed to be employees of the other Party. Each Party and its Affiliates shall be solely responsible for the payment of all compensation to its employees, including provisions for employment taxes, workmen’s compensation and any similar taxes associated with employment of its personnel. A Party ’s employees shall not be entitled to any benefits paid or made available by the other Party to its employees.

11.2 Non-Solicitation Obligations. During the term hereof and for a period of twelve (12) months thereafter, neither Party shall, directly, solicit for employment or employ, or accept services provided by, (i) any employee of the other Party (including employees of Cognizant’s Affiliates); or (ii) any former employee of the other Party (including former employees of Cognizant’s Affiliates) who performed any work in connection with or related to the Services.

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11.3 Subcontractors and Third-Party Providers. In addition to the right to engage Affiliates to provide Services as specified hereunder, Cognizant may engage non- Affiliate third parties which will be responsible for providing a portion of the Services that Cognizant provides to Client (such as field services and end user support) where such services are not dependent on a product being provided by such third party (“ Subcontractors”), provided that such Subcontractors have executed appropriate confidentiality agreements with Cognizant. Cognizant may also (i) engage vendors providing equipment or software (and services in support of such equipment or software) to support the provision of Services and/or (ii) subcontract for third party services or products that are not principally dedicated to performance of Services for the Client, which are not material to a function constituting a part of the Services, do not result in a material change in the way Cognizant conducts its business, or are composed of small scale temporary labor (collectively, “Third Party Providers”). For the avoidance of doubt, Third Party Providers shall not be deemed “Subcontractors” as such term is defined under this Section 11.3;. Cognizant may engage such Third Party Providers pursuant to such Third Party Providers’ standard terms and conditions.

Client shall agree in writing to be bound by the Third Party Providers’ standard terms and conditions to the extent necessary, if at all, for Client to (iii) be able to use of the relevant Third Party Provider’s product or services in connection with its receipt of the Services and/or (iv) make use of any of the Services supported by such Third Party Provider’s product/services. No engagement of Subcontractors or Third Party Providers hereunder will relieve Cognizant from any of its obligations under this Agreement.

11.4 Nondiscrimination. To the extent applicable to Services under this Agreement, Cognizant shall abide by the requirements of 41 C .F.R. §§ 60- 1.4(a), 60 -300.5(a) and 60- 741.5(a). These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, sexual orientation, gender identity or national origin. Moreover, these regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, national origin, protected veteran status or disability.

12. TERM AND TERMINATION.

12.1 Term. The Agreement is effective as of the date on the Agreement and shall continue in effect for an initial term ending three years thereafter. The Agreement shall thereafter continue in effect for successive one- year terms, unless not later than sixty (60) days prior to the end of the then- current successive term, either party shall notify the other that the Agreement shall expire, in which event the Agreement shall expire on the last day of the then- current successive term (except with respect to any Statement of Work for which the term set forth in such Statement of Work has not yet been completed, which Statement of Work shall continue until expiration or termination).

12.2 Termination or Suspension. This Agreement may be terminated in whole or in part by either Party (the “non-breaching party”) upon written notice to the other Party if any of the following events occur by or with respect to such other Party (the “breaching party”): (i) the breaching party commits a material breach of any of its obligations hereunder and fails to cure such breach within thirty (30) days after receipt of notice of such breach or fails to reach an agreement with the non- breaching party regarding the cure thereof; or (ii) any insolvency of the breaching party, any filing of a petition in bankruptcy by or against the breaching party, any appointment of a receiver for the breaching party, or any assignment for the benefit of the breaching party’s creditors. In addition to any right to terminate as provided in this Agreement, the Parties agree that in connection with any dispute for which Client withholds the payment of charges pursuant to this Agreement, if the

CONFIDENTIAL INFORMATION 11

total amount being disputed (other than amounts in dispute resulting from clear billing errors of Cognizant), plus any amount that is undisputed but past due and any interest that has accrued thereon, exceeds the amount of fees billed by Cognizant in the then-prior three-month period (the “Disputed Amount”), Cognizant may, without liability to Client or its Affiliates, with at least 30 days’ prior written notice to Client, suspend the further delivery of Services that are not paid for in advance until all payment disputes are resolved using the dispute resolution process set forth in this Agreement. If Client pays the Disputed Amount, Cognizant shall promptly recommence performance of the Services and all Cognizant timing obligations and delivery commitments under this Agreement and/or each applicable SOW shall be extended by the number of days between the date of suspension and the date Cognizant recommences performance of the relevant Services.

12.3 Payment upon Termination. Upon termination, Cognizant will be entitled to recover payment for all Services rendered that have been accepted by Client as conforming to the associated specification through the date of termination (including for work in progress), and in the event of termination of this Agreement, in whole or in part, by either Party pursuant to this Section 12 , Cognizant will also be entitled to recover those reasonable costs incurred in anticipation of performance of the Services to the extent they cannot reasonably be eliminated.

12.4 Survival. In the event of termination or upon expiration of this Agreement, Sections 3, 5, 6, 8, 9 (subject to the expiration of any warranty period), 10 , 11, 12, and 13 hereof will survive and continue in full force and effect.

13. MISCELLANEOUS.

13.1 Governing Law. This Agreement will be governed by the laws of the State of California without reference to the principles of conflicts of law. The Parties acknowledge and agree that this Agreement relates solely to the performance of services (not the sale of goods) and, accordingly, will not be governed by the Uniform Commercial Code of any State having jurisdiction. In addition, the provisions of the Unif orm Computerized Information Transaction Act and United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

13.2 Dispute Resolution.

13.2.1 Informal Negotiations. In the event of any dispute, controversy, or claim of any kind arising out of or relating in any way to this Agreement or the breach thereof (each a “ Dispute”), prior to filing a notice of claim , the Party claiming a Dispute shall send a written notice to the other Party describing the basis for the Dispute and the requested remedy, and inviting the other Party to have its executive confer with a named executive of the claiming party to attempt to negotiate a resolution.

To the fullest extent permitted by Law, each Party irrevocably waives all rights to a trial by jury.

13.3 Binding Effect and Assignment. Neither Party may assign or otherwise transfer any of its rights, duties or obligations under this Agreement without the prior written consent of the other Party, except either Party may, upon prior written notice to the other Party (but without any obligation to obtain the consent of such other Party ), assign this Agreement or any of its rights hereunder to any Affiliate of such Party, or to any entity who succeeds (by purchase, merger, operation of law or otherwise) to all or substantially all of the capital stock, as sets or business of

CONFIDENTIAL INFORMATION 12

such Party, if such entity agrees in writing to assume and be bound by all of the obligations of such Party under this Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assignees.

13.4 No Third Party Beneficiaries . This Agreement shall not confer any rights or remedies upon any person other than the Parties and their respective successors and permitted assigns.

13.5 Notices. All notices required by this Agreement will be given in writing to the other Party and delivered by registered mail, international air courier, facsimile, or the equivalent. Notices will be effective when received as indicated on the facsimile, registered mail, or other delivery receipt.

All notices will be given by one Party to the other at its address stated on the first page of this Agreement unless a change thereof previously has been given to the Party giving the notice.

13.6 Amendments and Waivers. This Agreement may be modified only by a written amendment executed by duly authorized officers or representatives of both Parties. No waiver by either Party of any right or remedy hereunder shall be valid unless the same shall be in writing and signed by the Party giving such waiver. No waiver by either Party with respect to any default, misrepresentation, or breach of warranty or covenant hereunder shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

13.7 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, then such provision shall be severed from this Agreement and the remaining provisions will continue in full force.

13.8 Counterparts. This Agreement and each Statement of Work may be executed in several counterparts and by facsimile signature, each of which will be deemed an original, and all of which taken together will constitute one single agreement between the Parties with the same effect as if all the signatures were upon the same instrument. A telecopy signature shall be as legally effective as an original signature. Any executed copy shall not be binding upon any Party until all Parties have duly executed a copy of this Agreement. This Agreement shall be effective upon the date of the last such signature, so long as all signatures are obtained within fifteen (15) days of each other.

13.9 Entire Agreement This Agreement and all Statements of Work and Contractor agreements attached hereto constitute the complete and exclusive statement of the agreement between the Parties and supersede all proposals, oral or written, and all other prior or contemporaneous communications between the Parties relating to the subject matter herein.

13.10 Press Releases and Announcements . Either Party may make any public disclosure it believes in good faith is required by applicable law, regulation or stock market rule (in which case the disclosing party shall use reasonable efforts to advise the other Party and provide it with a copy of the proposed disclosure prior to making the disclosure).

13.11 Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

13.12 Consents and Approvals. Except where expressly provided as being in the discretion of a Party, where approval, acceptance, consent or similar action by either Party is required under this Agreement or the applicable Statement of Work , such action shall not be unreasonably withheld or delayed.

CONFIDENTIAL INFORMATION 13

IN WITNESS WHEREOF, Cognizant and Client have caused this Agreement to be signed and delivered by their duly authorized officers, all as of the date first herein above written.

COGNIZANT WORLDWIDE LIMITED

Signature:

Print Name:

Title:

CITY OF SANTA MARIA, CALIFORNIA

Signature:

Print Name:

Title: _______________________________

Solely for the purpose of acknowledging that CTS US may perform local services in the United States of America in accordance with Section 1.1:

COGNIZANT TECHNOLOGY SOLUTIONS U.S. CORPORATION

Signature:____________________________
Print Name:____________________________
Title:_________________________________

CONFIDENTIAL INFORMATION 14

EXHIBIT A

DATA PROTECTION AGREEMENT

This Data Protection Agreement (this “DPA”), is entered into by and between Cognizant Worldwide Limited (collectively with its Affiliates, “Cognizant”) and City of Santa Maria, California (“Client”) (each a “ Party” and collectively, “Parties”), pursuant to the terms and conditions of the Master Services Agreement (the “Agreement”) effective March __, 2024 between the Parties.

General Data Protection Terms

1. Introduction.

1.1. Order of Precedence . This DPA is part of the Agreement, and the terms of this DPA are in addition to, and not in lieu of, the terms in the Agreement. Other than with respect to the limitations of liability set forth in the Agreement, which shall govern and control in all cases, the terms of this DPA shall prevail over any conflicting terms in the Agreement’s other sections.

2. Definitions.

2.1. In this DPA:

a. “Access” or “Accessing” means to access, view, alter, use, process, transfer, store, host, disclose, erase, destroy, or dispose of Protected Data, and includes any operation or set of operations performed upon Protected Data, whether or not by automated means.
b. “Applicable Laws ” means the privacy, data security, and data protection laws, directives, regulations, orders, and rules in the jurisdiction(s) applicable to the Cognizant and/or the Services provided under the Agreement. c. “Applicable Standards ” means government standards, industry standards, and commercially reasonable practices related to privacy, data security or data protection that are applicable to Cognizant and the Services provided under the Agreement, or such other standards as otherwise agreed to by the Parties and specifically set forth in an applicable Statement of Work or other written agreement. d. “Authorized Person(s)” means the individual(s) to whom Client or Cognizant has granted Access to Protected Data.
e. “Employee Personal Data” means the Personal Information of the personnel of Cognizant, Cognizant ’s Affiliates, or Cognizant subcontractors or other representatives.
f. “European Data Protection Legislation” means: Regulation 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of Personal Data and on the free movement of such data, and repealing Directive 95/46/EC (“General Data Protection Regulation”), including

CONFIDENTIAL INFORMATION 15

any applicable delegated acts adopted by the European Commission and any applicable national legislation made under or otherwise adopted by member states of the EEA (defined below), Switzerland, or the UK pursuant to specific rights or powers contained within the General Data Protection Regulation and all other applicable legislation in the EEA, Switzerland, and the UK relating to the protection of Personal Information.
g. “include” or “including” means including but not limited to. h. “Personal Data” means: any information relating to an identified or identifiable natural person; an identifiable person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that person. i. “Personal Information” means: (i) information relating to an identified or identifiable individual in any form or medium; (ii) information related to an identified or identifiable individual that is protected under Applicable Law (including Personal Data); or (iii) information that is not specifically about an identified or identifiable individual but, when combined with other information, may identify an individual. In the event that the definition of Personal Information in this DPA is inconsistent with a definition of Personal Data, Personal Information, or similar concept under an Applicable Law, then the definition of such concept under the Applicable Law shall prevail solely to the extent of the inconsistency.
j. “Protected Data” means the Personal Information to which Client has granted Cognizant access for the performance of Cognizant’s obligations under the Agreement.
k. “Security Incident” means the unauthorized or unlawful destruction, loss, alteration, or disclosure of Protected Data caused by Cognizant’s breach of this DPA . Security Incidents will not include unsuccessful attempts to Access Protected Information or to interfere with system operations in an information system, such as “scans” or “pings” on a firewall.
l. “Security Standards” has the meaning set forth in Section 5 of this DPA.

2.2. All capitalized terms that are not expressly defined in this DPA will have the meaning given to them in the Agreement. All examples are illustrative and not the sole or exclusive examples of a particular concept.

3. General Obligations.

3.1. Compliance. Cognizant agrees that, during the period in which Cognizant has been given Access to Protected Data, it will comply with its obligations under Applicable Laws.

Cognizant will provide commercially reasonable information, assistance, and cooperation regarding the processing of Personal Information as Client may reasonably require to enable Client to comply with Applicable Laws, including (when required by Applicable Laws) assisting Client (at Client’s expense) with its security, notification, communication, recordkeeping, and reporting obligations under Applicable Laws.

CONFIDENTIAL INFORMATION 16

3.2. Purpose Limitation. Cognizant agrees that it will Access Protected Data : (i) in accordance with the lawful, written instructions of Client (provided such instructions are reasonable and provided that Client shall be responsible for any material costs incurred by Cognizant in order to comply with such documented instructions) ; (ii) for the proper management and administration of Cognizant or to carry out Cognizant’s legal responsibilities under Applicable Laws; and (iii) to fulfill its obligations under the Agreement and the relevant Statement(s) of Work.

3.3. International Transfers of Personal Information . When applicable, and where required by Applicable Laws, the Parties agree to execute appropriate data transfer agreements to ensure the lawfulness of cross-border transfers of Personal Information.

3.4. Duty of Confidentiality . Cognizant agrees that Authorized Persons to whom Cognizant has granted Access to Protected Information will be subject to a duty of confidentiality (whether such duty is contractual, statutory, or otherwise).

3.5. Individual Rights. Cognizant will reasonably assist the Client to fulfill or resolve an individual’s request for access to his or her Personal Information, including with respect to a request from a data subject to exercise any of his or her rights under Applicable Laws (including the rights of access, correction, blocking, objection, erasure and data portability, as applicable). If Cognizant receives such a request directly from the individual(s), Cognizant will promptly inform Client of the request.

3.6. Prohibited Personal Information. Client will not provide Cognizant with Access to Personal Information that contains any special categories of Personal Data or information related to criminal convictions and offenses that are not expressly disclosed in the relevant SOW(s).

4. Obligations for Special Categories of Personal Information.

4.1. European Data Protection Requirements. If Cognizant or a Cognizant Affiliate: (i) is established within the European Economic Area (“ EEA”), Switzerland, or the UK and processes Personal Data of EEA or UK data subjects on behalf of Client or a Client Affiliate as part of the Services; (ii) processes Personal Data on behalf of a Client Affiliate established in the EEA, Switzerland, or the UK as part of the Services; or (iii) processes the Personal Data of data subjects located in the EEA , Switzerland, or the UK on behalf of the Client or a Client Affiliate as part of the Services , then the Parties will enter into additional EU -specific data privacy terms with respect to the Services that involve processing of such Personal Data.

4.2. HIPAA. If and to the extent Cognizant has Access to Protected Health Information as defined at 45 C.F.R. §160.103 ( “PHI”) subject to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”), then the Parties shall enter into a mutually agreeable Business Associate Agreement subject to the provisions of the Agreement.

5. Security Standards.

5.1. Minimum Security Standards . Cognizant agrees to implement and maintain commercially reasonable and appropriate administrative, technical, organizational, and physical controls designed to provide a level of security appropriate to the risk and to protect the confidentiality, integrity, and availability of Protected Data ( “Security

CONFIDENTIAL INFORMATION 17

Standards”), including: (i) controls designed to secure facilities, infrastructure, data centers, servers, hard copy files, systems, equipment, applications, and devices used to Access Protected Data, including controls to monitor, prevent, detect, and respond to Security Incidents; (ii) policies and practices limiting Access to Protected Data only to Authorized Persons; and (iii) procedures to regularly assess and evaluate the effectiveness of the Security Standards.

5.2. Training. Cognizant will provide privacy and security training for all Authorized Persons who Access Protected Data.

5.3. Client Responsibility for Employee Personal Data. To the extent that Client has Access to Employee Personal Data, Client shall implement and maintain, in compliance with Applicable laws, a data privacy and security program to protect Employee Personal Data to a standard materially the same as those required of Cognizant hereunder. Client shall collect only the minimum necessary amount of Employee Personal Data to comply with Client’s obligations under Applicable Laws.

6. Return and Disposal of Protected Data. Upon the earlier of Client’s written request or termination or expiration of the Agreement, Cognizant will securely destroy or, at Client’s expense, return the Protected Data in accordance with Client’s reasonable written instructions. Cognizant agrees to return or destroy Protected Data within ninety (90) days of receipt of Client’s written request or expiration or termination of the Agreement, as applicable; provided, however, that Cognizant may retain copies of Protected Information that Cognizant is legally required to retain, subject to a continued obligation to hold the same in confidence in accordance with this Agreement.

7. Security Incident Response.

7.1. Security Incident Response Program. Cognizant will maintain an incident response program in compliance with Applicable Laws to respond to Security Incidents.

7.2. Notice, Investigation, and Remediation. In the event of a Security Incident, Cognizant will notify Client without undue delay (and in no event more than seventy -two (72) hours after confirmation of the Security Incident). This notification will include, to the extent know at the time notice is s ent: (i) a description of the Security Incident; (ii) the categories and types of Protected Data affected; and (iii) if applicable, the categories and number of data subjects and individual records affected. Additionally, Cognizant will promptly investigat e and remedy the Security Incident, take commercially reasonable steps to mitigate the effects of the Security Incident and to prevent further Security Incidents, and take other actions required of it by Applicable Laws.

7.3. No Unauthorized Statements . Except as required by Applicable Laws, neither Party will make public statements concerning a Security Incident that references or identifies either Party, unless both Parties have provided express written consent for any such statement prior to its release.

8. Change in Law. If an Applicable Law becomes effective after the execution of this DPA and is inconsistent with the terms of this DPA or otherwise requires the Parties to amend this DPA or change the Services, the Parties agree to enter into good faith negotiations to ma ke required changes to the Security Standards, the Serv ices, and/or to amend this DPA or the Agreement.

CONFIDENTIAL INFORMATION 18

9. Survival. Cognizant’s obligations under this DPA will survive termination or expiration of the Agreement and/or completion of the Services solely to the extent Cognizant is required to Access Protected Data.

IN WITNESS WHEREOF, Cognizant and Client have caused this DPA to be signed and delivered by their duly authorized officers, all as of the date first herein above written.

COGNIZANT WORLDWIDE LIMITED

Signature:

Print Name:

Title:

CITY OF SANTA MARIA, CALIFORNIA

Signature:

Print Name:

Title: ______________________________

State
ment of Work
45 QUEEN STREET

CHARLOTTETOWN,

PE SPR
YPOINT.COM
C1A 4A4, CANADA
Helsy
@Rkayle
Statement of Work
Workday Deployment Services
Preparation Date: October 10, 2023
Prepared For:

City of Santa Maria
ATTACHMENT C-1

Statement of Work
1 STATEMENT OF WORK
FOR

WORKDAY DEPLOYMENT SERVICES

This Statement of Work (“SOW”) is made effective on the 24th of June 2024 (the “SOW Effective Date”) by and between City of Santa Maria (“Client”), having its principal place of business at 110 E. Cook Street, Santa Maria, CA 93454 and Collaborative Solutions, LLC, a limited liability company (“CSLLC”), having its principal place of business at 300 Frank W Burr Boulevard, Suite 36, 6th Floor, Teaneck, NJ 07666 for Services scheduled to begin on June 24, 2024 (“Start Date”) and expected to end on January 30, 2026.

This SOW, together with Exhibit A, Exhibit B and the Agreement, set out the terms pursuant to which CSLLC will provide certain Services, as further described below, to City. CSLLC has subcontracted with Sprypoint and CanAm to provide the services listed in Exhibits A and B, respectfully, to the City on CSLLC’s behalf.

This SOW is being entered into in connection with and subject to the terms and conditions contained in the Master Services Agreement between CSLLC and Client dated as of March __, 2024 (the “Agreement”). All capitalized terms used herein that are not otherwise defined shall have the same meaning as ascribed to such terms in the Agreement.

RECITALS

A. Whereas, the City issued a Request for Proposal for Enterprise Resource Planning (ERP) Software and Implementation Services on October 3, 2022 (hereafter “RFP”), a copy of which is attached hereto as Exhibit B and incorporated herein by this reference; and

B. Whereas, Cognizant through its predecessor entity Collaborative Solutions, LLC provided a proposal in response to the RFP on November 14, 2022 (hereafter “Proposal”) a copy of which is attached hereto as Exhibit C and incorporated herein by this reference; and

C. Whereas the Proposal called for services to be provided by: (1) Cognizant (as implementation partner); (2) Workday (as primary software vendor); (3) SpryPoint (for utility billing); (4) Can/Am Teller (for centralized cashiering); and (5) Debtbook (for debt and lease management) . Workday, SpryPoint Can/Am Teller and DebtBook are sometimes individually referred to herein as a “Contractor” or “Tenant” and collectively referred to herein as the “Tenants” or “Contractors”.

D. Whereas, as the implementation partner, Cognizant desires to act as the lead company for implementation and integration of the hardware, software, programs, platforms and services (“Systems and Services”) of each of the Contractors referred to herein in order to satisfy the requirements of the RFP, and Cognizant desires to be responsible for completion of the ERP Software and Implementation Project for the City as set forth in the RFP (hereinafter the “Project”).

Statement of Work
2 E. Whereas, prior to or concurrently herewith, each of the Contractors is entering into its own separate agreement directly with the City under which each Contractor will be responsible for and will implement their own particular Systems and Services for the City . Each such agreement is attached hereto as an Exhibit and incorporated herein.

F. Whereas, the City is relying on Cognizant to act as the lead company for implementation and integration of the Project, and is relying on all Contractors to cooperate with each other and with Cognizant, and to be responsible for and to implement and integrate their own particular hardware, software, programs, platforms and services for the City as part of the Project.

NOW, THEREFORE, for and in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Parties hereto covenant and agree as follows:

1.0 Scope of Work (“Scope”)
The Scope set out below describes the limits of the implementation in terms of organization, functionality, data conversion, integrations, reports, change management, and training which will be a part of the project.

1.1 Organization Scope

1.1.1 Person Population

Population Type Count
Active Employees Seven hundred and
fifty-five(755)
Contingent Workers
Terminated Workers
Retirees
Former Workers

Region Countries
North America United States

1.1.2 Language: All communication, documentation, data, and Deliverables will be in English.

1.1.3 Currency: United States Dollars (“USD”).

1.1.4 Security: Single sign-on and activation of Workday Factory delivered security groups.

1.1.5 Program Management & Oversight (PMO):

Statement of Work
3 Oversight Services. Cognizant represents and warrants that it has reviewed each of the attached agreements entered into between the City and each of the four Contractors (Workday, SpryPoint Can/Am Teller and DebtBook). Cognizant agrees that it shall act as project manager for and shall provide overall management, oversight, coordination and direction for the installation and implementation of the Statements of Work and of the Systems and Services provided by each Contractor, for the integration of all such Statements of Work and Systems and Services into the Project for the City. Cognizant represents and warrants that it has the capacity, personnel, knowledge and experience to perform these project management functions.

Cognizant shall have overall project management responsibility that includes coordination and program management of all Contractor activities as part of the Project. Cognizant will be responsible for developing, testing, and implementing integrations between the in-scope systems of each Contractor, and will coordinate activities with necessary parties to create all in- scope integrations. Cognizant will serve as the primary program manager and collaborate with a management team made up of resources from the City and each individual Contractor. Cognizant will align the implementation tasks with the implementors' schedule and supervise activities to ensure the City objectives are achieved in the best possible manner with quality control and assurance and in conformance to the functional requirements asserted in the Proposal submitted to the City (Exhibit C) and in the agreements from each Contractor.

1.1.5.1 Support the following program management activities:

1.1.5.1.1 Program roadmap – Management of all mutually agreed upon projects or workstreams across the program

1.1.5.1.2 Program schedule and key milestones log

1.1.5.1.3 Manage consolidated, program level status report.

1.1.5.1.4 RAID log management (Risks, Actions, Issues and Decision)

1.1.5.1.5 Workday, SpryPoint, Teller, Project management plan.

1.1.5.1.6 Cutover plan

1.1.5.2 Support the following for documentation and facilitation:

1.1.5.2.1 Status and RAID reviews with program project managers and leads - Weekly.

1.1.5.2.2 Status Meeting with PMO leadership team - Bi-weekly

1.1.5.2.3 Executive Committee Meeting – Monthly

1.1.5.3 Support project communication:

1.1.5.3.1 Ensure timelines and tasks are well coordinated across program activities.

1.1.5.3.2 Drive consistency and clarity across program status reporting

1.1.5.3.3 Support communication across the program team CSLLC Services Client Responsibilities
• Provide program management support as defined
in the CSLLC scope of services
• Coordinate with CSLLC project and client project
managers as needed
• Create and maintain program roadmap
• Lead the development and maintenance of
consolidated program schedule
• Maintain program RAID Log
• Facilitate resolution of escalations and/or RAID
log items
• Provide program management leadership and
guidance to CSLCC program manager
• Provide client project managers for all program
workstreams and projects
• Provide input to roadmap and approval as need
• Participate in the development and maintenance of
the consolidated program schedule

• Maintain program RAID log
• Facilitate resolution of escalations and/or RAID log
items as needed

Statement of Work
4 • Create and/or facilitate the creation of program
status reports
• Provide status for CSLLC owned
projects/workstreams
• Jointly schedule meetings and status reporting
• Co-create presentations for executive governance
meetings
• Conduct program/project meetings
• Request sign off on program deliverables as
needed
• Provide input to program status reports
• Provide status for client owned
projects/workstreams
• Jointly schedule meetings and status reporting
• Co-create presentations for executive governance
meetings
• Co-lead program/project meetings
• Sign off on program deliverables as needed

1.2 Functionality Scope
The following functional areas will be configured within the Workday application. This project is being deployed using CSLLC’s Cynergy methodology.

Functional Area Location Scope Phase
HUMAN CAPITAL MANAGEMENT (“HCM”)
HCM: Core United States of America 2
Compensation: Core United States of America 2
Benefits United States of America 2
Talent & Performance
Management
United States of America 2
Learning Management United States of America 2
Absence Management United States of America 2
Time Tracking United States of America 2
Payroll United States of America 2

FINANCIALS
Core Financial Management,
Accounting, and Finance
United States of America 1
Financial Accounting United States of America 1
Commitment Accounting United States of America 1
Budgets United States of America 1
Banking and Settlement United States of America 1
Procurement United States of America 1
Supplier Accounts United States of America 1
Business Assets United States of America 1
Expenses United States of America 1
Revenue Management United States of America 1

Statement of Work
5 Functional Area Location Scope Phase
Project and Work Management United States of America 1
Grants Management United States of America 1
Planning United States of America 1

CROSS-FUNCTIONAL
Prism United States of America 1
Mobile Solutions United States of America 1
Employee Self-Service United States of America 1
Manager Self-Service United States of America 1

Configuration of the functional areas above will be limited to the functionality Scope contained in Appendix D of this SOW.

Statement of Work
6 1.3 Prism Use Case(s)
The Prism use cases(s) below are included in the Scope of this SOW:

• Description of the Prism use case(s) which are in Scope:
• Up to four (4) Source System Tables
• Use of Existing Security
• Low Transformation Complexity
• One (1) Discovery Board
• One (1) Low Complexity Report
• One (1) Medium Complexity Report
• Two (2) DA Reviews
• Two (2) Migrations

1.4 Data Conversion Scope
Phase 1: Three (3) tenant builds are included in the Scope of this SOW. Data from Client's copy of current production systems will be converted into Workday during each of the conversion cycles without data scrambling or masking. Data scrambling or masking is not included in the Scope of this SOW, except for email addresses for all person types which will be masked until the Gold/pre-production build. The tenant builds for this SOW include:
• Foundation/Configuration build
• End-to-end build
• Gold/pre-production build

PHASE 2: Four (4) tenant builds are included in the Scope of this SOW. Data from Client's copy of current production systems will be converted into Workday during each of the conversion cycles without data scrambling or masking. Data scrambling or masking is not included in the Scope of this SOW, except for email addresses for all person types which will be masked until the Sandbox build. The data load cycles for this SOW include:
• Configuration build (starting point is a copy of Production) • End-to-end build (starting point is a copy of Production) • Parallel build (starting point is a copy of production) • Sandbox/Production build

The data conversion Scope is further detailed in Appendix E. Cynergy data validation reports will be provided as a starting point for data conversion files. Minor modifications will be necessary for Client specific requirements of additional data points; however, any additional changes to the delivered reports are considered out-of-Scope.

Statement of Work
7 1.5 Interfaces/Integrations Scope
The integrations listed in Appendix B are included in the Scope of the project. Below is a summary of the integration counts.

Phase 1 – Financials:

Integrations Owner Cloud
Connect
Enterprise Interface
Builder/Document
Transformation Service
Workday
Studio
Other
CSLLC Seven (7) One (1) Seven (7) Two (2)
Client Zero (0) Zero (0) Zero (0) Zero (0)

Phase 2 – HCM/PATT:

Integrations Owner Cloud
Connect
Enterprise Interface
Builder/Document
Transformation Service
Workday
Studio
Other
CSLLC Fifteen (15) Four (4) Three (3) Three (3)
Client Zero (0) Zero (0) Zero (0) Zero (0)

1.6 Report Scope
All Workday delivered standard reports associated with the Scope listed in Section 1.2 are included in the Scope of the project. If CSLLC has included additional hours of assistance for additional custom reporting support and training as part of CSLLC's estimate, it will be identified in the Pricing section of this SOW. Any hours identified for custom reporting support are inclusive of design discussions, requirements gathering, development and Knowledge Transfer (“KT”).

Any specific custom reports listed in Appendix B are included in the Scope of the project.

1.7 End User Organizational Change & Training (“OC&T”) Scope As they relate to the applications, areas, and events specified in Sections 1.1 and 1.2 above, CSLLC will complete Organizational Change Management and Training Services. Specific Services and tasks to be performed by CSLLC and the Client are detailed in Section 2.0 below. All OC&T activities, communication, materials, and Deliverables will be conducted and/or produced in English.

2.0 Services and Responsibilities
This section identifies the Services to be performed by CSLLC and the responsibilities of Client.

Statement of Work
8 Stage CSLLC Services Client Responsibilities
Strategy • Assemble the CSLLC project team for
Strategy stage
• Conduct Strategy planning sessions
• Schedule Strategy meetings and
provide status reporting
• Participate in weekly project meetings
• Jointly schedule Strategy workshops
• Executive Summary
• Conduct Strategy Map session
• Define Project Governance and
Decision-making Model
• Conduct Data Conversion Readiness
session
• Conduct Foundation Data Assessment
sessions
• Conduct Workday Technology,
Enterprise Architecture, and Reporting
sessions
• Conduct Production Governance
sessions
• Conduct Service Delivery Model
sessions
• Provide stage sign-off document

• Assemble the Client project team for
Strategy stage
• Attend Strategy planning sessions
• Attend weekly project meetings
• Jointly schedule Strategy workshops
• Participate in Strategy workshops: Strategy
Map, Project Governance Model,
Technology Readiness, and Service
Delivery Model
• Provide input into the executive
presentation summary
• Provide stage sign-off document
• Optional:
o Perform business process
optimization sessions
o Conduct current state reviews
o Document future state processes
o Create process maps and identify
gaps
Plan • Assemble the CSLLC project team
• Deliver discovery templates
(deployment discovery questionnaire,
integration discovery document) to
Client
• Establish a regular cadence of status
report and governance meetings
including a monthly steering committee
meeting
• Jointly schedule planning sessions
• Create the integration tracker
(dashboard)
• Conduct functional and technical
project planning sessions
• Create the Project Plan
• Create the Project Charter
• Create baseline tenant management
plan
• Identify initial risks and
recommendations to reduce risk
• Identify and provide project team and
project Subject Matter Experts (“SMEs”)
• Identify stakeholders, sponsors, and system
administrators
• Participate in functional and technical
planning sessions
• Establish and attend monthly Steering
Committee meetings including CSLLC
Engagement Manager (“CSLLC EM”)
• Provide input into the Project Plan
• Provide input into the Project Charter
• Participate in and provide input into data,
reporting, and integration readiness
workshops
• Participate in integration planning session
• Prepare for and Lead project kick off
meeting
• Provide plan and policy documents
• Provide integration requirements and
existing sample files

Statement of Work
9 Stage CSLLC Services Client Responsibilities
• Participate in and support the project
kickoff meeting
• Conduct data and reporting readiness
workshops
• Provide the sample data conversion
and validation strategy template;
advise on development of the Data
Conversion Strategy & Plan
• Provide data conversion and
configuration workbooks
• Assist with questions regarding
mapping of data to Workday data
model
• Jointly schedule architect workshops
• Conduct Foundation Data Model
(FDM) Architect sessions
• Jointly create the executive
presentation for project kickoff meeting
• Provide Test Strategy sample
template; advise on development of
the Test Strategy
• Build Foundation Tenant for Phase 1,
Copy Production Tenant into
Implementation Tenant in preparation
for Configuration Build for Phase 2
• Work with Client to set up CSLLC’s
SFTP site for sharing
confidential/private employee data
• Load Client data for
Foundation/Configuration tenant
• Provide feedback regarding potential
data issues and exceptions from the
Foundation/Configuration build
• Schedule and conduct Project Initiation
Checkpoint Workday Delivery
Assurance review
• Provide stage sign-off document
• Notify third-party vendors for integrations
and obtain agreement to project timelines
• Provide third-party vendors contact
information
• Develop data conversion strategy and test
strategy plan
• Participate in and provide input to
organizational change and training strategy
workshop
• Complete data gathering and configuration
workbooks and submit to CSLLC’s Secure
File Transfer Protocol (SFTP) site
• Review and approve project governance,
strategy map, readiness workshop output
and change strategy (plan stage
deliverables)
• Participate in executive readout of Strategy
stage deliverables
• Jointly identify initial risks and
recommendations to reduce risk
• Initiate process of receiving requirements to
third-party vendors
• Receive integration requirements from third-
party vendors
• Confirm Client Support Contact
• Develop training plan for project resources
• Identify key resources to complete Workday
training
• Complete Workday training including
workbook, integration, and functional
training
• Jointly create the executive presentation for
project kickoff meeting
• Provide plan and policy documents
• Work with CSLLC to set up CSLLC’s SFTP
site for sharing confidential/private
employee data
• Provide implementation tenant for exclusive
use on this project
• Jointly schedule architect workshops
• Sign off on stage

Architect
&
Configure
• Manage the Project Plan
• Participate in weekly one (1) hour
project management meetings
• Provide weekly status report
• Provide input to the project plan
• Participate in weekly project and
workstream meetings
• Co-Lead steering committee meetings

Statement of Work
10 Stage CSLLC Services Client Responsibilities
• Co-lead monthly Steering Committee
status meetings
• Conduct weekly one (1) hour
workstream meetings as needed
• Develop initial change impact
document based on Plan readiness
sessions then transition change impact
document to Client to own and
maintain change impacts in Architect
and customer confirmation sessions
• Conduct Architect workshops
• Develop the CSLLC assigned
integration design approach
documents; advise Client on
development of design approach
documents for Client assigned
integrations
• Provide the data-gathering workbooks
for the configuration tenant
• Deliver the initial functional design
documentation for sign off
• Assist with questions regarding
mapping of data to Workday data
model
• Build configuration tenant. Provide
exception reports/issues log from
tenant build
• Deliver Cynergy
tenant validation
reports and support validation efforts
of configuration tenant
• Provide baseline end-to-end Test
templated scenarios to Client for
review and use determination
• Conduct smoke test for configuration
tenant
• Begin functional knowledge transfer
process during configuration tenant
smoke testing
• Jointly conduct Workday Customer
Confirmation Sessions (“CCS”)
• Develop CSLLC assigned integrations
• Conduct smoke testing of integrations
developed by CSLLC
• Create Integration operations
instruction guides for CSLLC assigned
integrations
• Update functional design documents
• Provide project SMEs for Architect and
Customer Confirmation Sessions
• Participate in Architect and Customer
Confirmation Sessions
• Assist in clarifying configuration
requirements
• Review and approve initial change impact
document then own and maintain for
duration of project
• Conduct integrations Architect workshop
(design sessions) for Customer assigned
integrations
• Develop Client assigned integration design
approach documents
• Agree to integration design approach
documents (after detailed design review
sessions)
• Review and sign off on functional design
documents
• Finalize Data Conversion Strategy and Plan
• Update data-gathering workbooks for
configuration tenant
• Develop extract scripts and provide
validated extract data from legacy system(s)
into a single set of data into the CSLLC
prescribed data conversion templates for
load to the Workday platform for the
configuration tenant
• Provide Client personal data/personally
identifiable information for configuration
tenant and submit to CSLLC’s secure
transfer site
• Validate configuration tenant build
• Review and resolve issues from exception
reports
• Review existing reports and confirm which
Workday reports will meet these needs and
identify any necessary custom reports as
part of the Architect & Configure stage
• Finalize Test Strategy
• Develop catch-up data transaction entry
approach
• Define and document test plan and test
scenarios (end-to-end and regression)
• Jointly conduct CCS
• Develop Client assigned integrations
• Conduct unit testing of configuration

Statement of Work
11 Stage CSLLC Services Client Responsibilities
• Provide smoke test scenarios from
architect workshops and advise on
Client defined test scenarios
• Provide input on test management
processes and tools including defect
management, status tracking/reporting
and daily test status meetings
• Review Client defined test scenarios
for end-to-end and production dress
rehearsal
• Design, develop and smoke test
CSLLC assigned reports
• Deliver final CSLLC maintained design
workbooks to Client at the end of the
stage
• Assist with questions regarding
mapping of data to Workday data
model
• Build of end-to-end tenant
• Provide exception reports/issues log
from end-to-end tenant build
• Deliver Cynergy tenant validation
reports and support validation efforts
of end-to-end tenant
• Provide stage sign-off document

• Conduct smoke testing of integrations
developed by Client
• Create integration operations guides for all
Client assigned integrations
• Review integration smoke test results and
final integration design to provide signoff of
integrations ready for end-to-end testing
• Participate in functional knowledge transfer
during configuration tenant unit testing
• Define and implement test management
processes and tools including defect
management, status tracking/reporting and
daily test status meetings
• Develop comprehensive cross-functional
scenarios from smoke and/or end-to-end
Test templated scenarios provided by
CSLLC
• Review and finalize test scenarios, test
scenario assignments and detailed daily
test plan
• Train and prepare testers for testing
• Develop material to be presented at the
Test Kickoff meeting
• Design, develop and unit test Client
assigned reports
• Sign off on functional design documents
• Develop extract scripts and provide
validated extract data from legacy system(s)
into a single set of data into the CSLLC
prescribed data conversion templates for
load to the Workday platform for the end-to-
end tenant
• Provide Client personal data/personally
identifiable information for end-to-end
tenant and submit to CSLLC’s secure
transfer site
• Validate end-to-end tenant build
• Review and resolve issues from exception
reports
• Sign off on stage
Phase 1
Test
• Manage the project plan
• Conduct weekly project meetings and
workstream meetings
• Co-lead Steering Committee meetings
• Participate in test kickoff session
• Provide input to the project plan
• Participate in weekly project meetings and
workstream meetings
• Co-lead Steering Committee meetings
• Lead test kickoff session
• Lead daily end-to-end test meetings

Statement of Work
12 Stage CSLLC Services Client Responsibilities
• Conduct one (1) hour navigation
review per workstream, at start of test
cycle
• Create integrations schedule
recurrence tracker
• Support integration defect resolution
for CSLLC assigned integrations
• Provide functioning CSLLC assigned
integrations per the test plan
• Prepare and conduct production dress
rehearsal - user experience sessions
• Prepare and conduct production dress
rehearsal – governance & engagement
• Prepare and conduct production dress
rehearsal – support operations
• Coordinate the first Workday product
release during the project along with
knowledge transfer for the Client to
manage subsequent updates
• Participate in one (1) thirty (30) minute
daily end-to-end test status meeting,
limited to one (1) CSLLC functional
workstream consultant and one (1)
CSLLC integration consultant (if
applicable) for workstreams where
there is an open issue
• Conduct up to five (5) one (1) hour
knowledge transfer meetings, per
workstream
• Resolve CSLLC assigned test
incidents; support Client in resolution
of Client assigned test incidents
• Provide sample deployment cutover
plan; advise Client in developing
detailed cutover plan
• Provide knowledge transfer workbook
for sign off
• Provide Workday Go-Live checklist
• Provide stage sign-off document
• Execute all test scenarios (end-to-end and
regression) and provide test management
(e.g., testing coordination, compiling
scenarios, reporting metrics, etc.)
• Resolve Client assigned test incidents
• Support integration defect resolution for
Client assigned integrations
• Provide functioning Client assigned
interfaces per the test plan
• Coordinate, plan and participate in
production dress Rehearsal - user
experience sessions
• Coordinate, plan and participate in
production dress rehearsal – governance
& engagement
• Coordinate, plan and participate in
production dress rehearsal – support
operations
• Client SMEs to participate in knowledge
transfer meetings
• Develop subset or supplemental scenarios
for additional testing during the Test stage
• Plan and execute performance testing if
required by Workday
• Update system configuration as required
• Update design documentation (as required
by internal Audit team)
• Participate in the first Workday product
release during the project; coordinate
activities related to subsequent updates
• Manage and sign off on all test results
(end-to-end and regression)
• Complete test of extraction and load
process for catch-up data transaction entry
• Develop deployment cutover plan
• Complete and sign the Workday Go-Live
checklist
• Complete and sign off on the knowledge
transfer workbook
• Sign off on stage
Phase 2
Test
• Manage the project plan
• Conduct weekly project meetings and
workstream meetings
• Co-lead Steering Committee
meetings
• Participate in test kickoff session
• Provide input to the project plan
• Participate in weekly project meetings and
workstream meetings
• Co-lead Steering Committee meetings
• Lead test kickoff session

Statement of Work
13 Stage CSLLC Services Client Responsibilities
• Conduct one (1) hour navigation
review per workstream, at start of test
cycle
• Create integrations schedule
recurrence tracker
• Support integration defect resolution
for CSLLC assigned integrations
• Provide functioning CSLLC assigned
interfaces per the test plan
• Prepare and conduct production
dress rehearsal - user experience
sessions
• Prepare and conduct production
dress rehearsal – governance &
engagement
• Prepare and conduct production
dress rehearsal – support operations
• Coordinate the first Workday product
release during the project along with
knowledge transfer for the Client to
manage subsequent updates
• Participate in one (1) thirty (30)
minute daily end-to-end or parallel
test status meeting, limited to one (1)
CSLLC functional workstream
consultant and one (1) CSLLC
integration consultant, if applicable for
workstreams where there is an open
issue
• Conduct up to five (5) one (1) hour
knowledge transfer meetings, per
workstream
• Resolve CSLLC assigned test
incidents; advise Client in resolution
of Client assigned test incidents
• Assist with questions regarding
mapping of data to Workday data
model
• Build of parallel tenant
• Provide exception reports/issues log
from parallel tenant build
• Deliver Cynergy
tenant validation
reports and support validation efforts
of parallel tenant
• Support execution of two (2) payroll
parallel cycles per Client defined
parallel test management strategy
and success criteria
• Lead daily end-to-end and parallel test
meetings
• Execute all test scenarios (end-to-end,
user acceptance and regression) and
provide test management (e.g., testing
coordination, compiling scenarios,
reporting metrics, etc.)
• Resolve Client assigned test incidents
• Support integration defect resolution for
Client assigned integrations
• Provide functioning Client assigned
interfaces per the test plan
• Coordinate, plan and participate in
production dress rehearsal - user
experience sessions
• Coordinate, plan and participate in
production dress rehearsal – governance
& engagement
• Coordinate, plan and participate in
production dress rehearsal – support
operations
• Client SMEs to participate in knowledge
transfer meetings
• Develop subset or supplemental scenarios
for additional testing during Test stage
• Plan and execute performance testing if
required by Workday
• Update system configuration as required
• Update design documentation (as required
by internal Audit team)
• Participate in the first Workday product
release during the project; coordinate
activities related to subsequent updates
• Complete test of extraction and load
process for catch-up data transaction entry
• Develop extract scripts and provide
validated extract data from legacy
system(s) into one (1) set of data into the
CSLLC prescribed data conversion
templates for load to the Workday platform
for the parallel tenant
• Provide Client personal data/personally
identifiable information for parallel tenant
and submit to CSLLC’s secure transfer site
• Validate parallel tenant build
• Review and resolve issues from exception
reports

Statement of Work
14 Stage CSLLC Services Client Responsibilities
• Setup parallel CSLLC’s ImPaCT tool
in preparation of parallel testing using
Client provided legacy payroll data
files in CSLLC’s designated format
• Provide parallel variance reports
utilizing CSLLC’s ImPaCT tool and
assist with questions related to
variance analysis
• Provide sample deployment cutover
plan, advise Client in developing
detailed cutover plan
• Provide knowledge transfer workbook
for sign off
• Provide stage sign-off document

• Complete catch-up data transaction entry
for parallel
• Execute two (2) payroll parallel cycles per
Client defined parallel test management
strategy and success criteria
• Provide legacy payroll data files in
CSLLC’s designated format in preparation
for parallel testing and use of CSLLC’s
ImPaCT tool
• Develop and provide any executive
summaries for parallel reporting to the
project leadership team
• Manage and sign off on all test results
(end-to-end, parallel, and regression)
• Develop deployment cutover plan
• Complete and sign off on the knowledge
transfer workbook
• Sign off on stage

Deploy • Manage the project plan
• Conduct weekly project meetings and
workstream meetings; participate in
Steering Committee meetings
• Provide the Workday Go-Live
Checklist and Move-to-Production
Authorization
• Schedule and conduct final Workday
Delivery Assurance reviews
• Update integration schedule and
recurrences tracker
• Assist with questions regarding
mapping of data to Workday data
model
• Build of Gold/pre-production tenant
• Provide exception reports/issues log
from Gold/pre-production tenant build
• Deliver Cynergy tenant validation
reports and support validation efforts
of Gold/pre-production tenant
• Build of Sandbox Tenant and
Migration to Production Tenant
• Deliver Cynergy tenant validation
reports and support validation efforts
of sandbox tenant
• Verify migration of CSLLC assigned
integrations
• Provide input to the project plan
• Participate in weekly project meetings and
workstream meetings; conduct Steering
Committee meetings
• Manage and execute to the deploy cutover
plan
• Develop extract scripts and provide
validated extract data from legacy
system(s) into a single set of data into the
CSLLC prescribed data conversion
templates for load to the Workday platform
for the Gold/pre-production OR sandbox
and production tenant
• Provide Client personal data/personally
identifiable information for Gold/pre-
production OR sandbox and production
tenant and submit to CSLLC’s secure
transfer site
• Validate Gold/pre-production OR sandbox
and production tenant build
• Review and resolve issues from exception
reports
• Provide required sign off for Sandbox
configuration migration to production
• Verify migration of Client assigned
integrations
• Jointly complete the Workday Go-Live
announcement

Statement of Work
15 OC&T Services

Phase 1 – Financials
Stage CSLLC Services Customer Responsibilities
Strategy Stage
OC&T
• Conduct Persona Workshop to review
standard Persona cards for the
following three (3) areas (as reflected
in project scope)
• Employee
• Manager
• Cost Center Manager
• Attend key Strategy sessions to
collect initial change impacts
• Develop preliminary Change Impact
Analysis to reflect information from
key Strategy sessions
• Provide organizational change
counterpart to regularly interface with
Cognizant’s OC&T team
• Participate in Persona Workshop
• Update standard Persona cards following
Persona Workshop
• Provide input on the preliminary Change
Impact Analysis
• Provide stage signoff
Organizational
Change
• Provide all Change Management
tools and templates
• Attend and participate in the project
kickoff meeting
• Develop preliminary OC&T Project
Plan
• Provide organizational change
counterpart to regularly interface with
Cognizant’s OC&T team
• Provide input and approval of all facets of
the change management strategy and
timeline
Stage CSLLC Services Client Responsibilities
• Schedule integrations according to
the integrations schedule recurrence
tracker
• Schedule the transition to production
support meeting with Client (held after
move-to-production)
• Jointly complete the Workday Go-Live
announcement
• Provide stage sign-off document

• Approve and sign off on the Workday Go-
Live Checklist and Move-to-Production
Authorization
• Create and distribute the Workday Go-Live
announcement
• Sign off on stage

Post-
Production
Support
• Provide standby support after the
move-to-production as defined by the
number of weeks in the timeline
outlined in Section 3.3
• Conduct knowledge transfer sessions
for CSLLC developed integrations if
required
• Conduct payroll support for Phase 2
• Conduct support for first financial
period close for Phase 1
• Provide stage sign-off document
• Implement post go-live governance
support model including staffing and
managing help desk
• Complete catch-up data transaction entry
• Make any updates to production, including
final load of transactional conversion data
• Sign off on stage

Statement of Work
16 • Conduct OC&T Kickoff and Architect
Workshop(s)
• Facilitate weekly workstream
meetings for on-going support and
guidance on usage of tools and
templates, for the duration of the
project
• Advise on Stakeholder Identification
• Advise on organizational change
strategy
• Co-develop initial Change Impact
Analysis to middle of Architect &
Configure stage
• Advise on Change Impact Executive
Summary
• Develop preliminary Communications
Plan to middle of Architect &
Configure stage
• Participate in OC&T Kick Off and
Architect Workshop(s)
• Conduct Stakeholder and Organizational
Readiness Assessments
• Identify stakeholders, sponsors and
change champions
• Provide OC&T resources to attend and
engage in functional alignment
workshops
• Co-develop Change Impact Analysis to
middle of Architect & Configure stage;
maintain Change Impact Analysis
starting at midpoint of Architect &
Configure stage
• Develop and deliver all end user
communications
• Maintain Communications Plan starting
at midpoint of Architect & Configure
stage
• Develop Change Network Strategy and
manage Change Network
• Plan, lead, and execute User Experience
Sessions
• Provide any necessary translations
End User
Training
• Develop Training Needs Analysis and
Training Curriculum Plan
• Provide access to all FIN job aids for
functional areas in scope
• Review and approve the Training Needs
Analysis and Training Curriculum Plan
• Lead development of all end-user
training materials as defined in the
Training Curriculum Plan
• Lead development and configuration of
in-system guidance (help text, guided
tours, etc.)
• Provide any necessary training
translations
• Coordinate training delivery and
deployment to end user populations
• Deliver training to all end user
populations as defined by the Training
Curriculum Plan
• Register training participants and track
training completion
• Assess training effectiveness
• Manage and implement Change
Sustainment Strategy/Plan
• Measure and report on end user
adoption
• Coordinate training remediation

Statement of Work
17 Phase 2 HCM/PATT:

Stage CSLLC Services Client Responsibilities
Organizational Change
Management & End-
User Training
• Provide all Change Management
tools and templates
• Provide job aids for HCM
functional areas in scope
• Develop preliminary OC&T
Project Plan
• Conduct OC&T Kickoff and
Architect Workshop
• Provide up to 40 hours of change
management advisory support*,
which includes regular check-ins
for guidance on usage of tools
and templates, for the duration of
the project.

*Change management advisory support
includes discussions related to timing of
deliverables, end-user communications,
stakeholder engagement, training
development and delivery, end-user
adoption, and sustainment strategies.
• Provide customer
counterpart(s) to interface with
Cognizant OC&T Lead
• Develop and execute all
change management activities
• Update job aids to meet
specific business needs
• Participate in OC&T Kickoff &
Architect Workshop
• Maintain OC&T Project Plan
after the Plan Phase
• Develop and execute all end-
user training
• Develop and execute all end-
user communications
• Manage OC&T workstream

3.0 Project Approach

3.1 Methodology
The implementation will be completed by following CSLLC’s Cynergy methodology which consists of the following stages: Plan, Architect & Configure, Test, and Deploy.

The specific tasks and durations to complete these tasks will be detailed in the Project Plan, Project Charter and Project Schedule which are to be developed jointly by the CSLLC Engagement Manager (“CSLLC EM”) and the Client Project Manager.

3.2 Governance
Project Management
In the Plan stage of the project, the CSLLC EM will work with the Client Project Manager to develop a detailed project plan to be used to maintain project tasks and the Timeline.

A project charter will be created to guide the team in maintaining Scope and project objectives. The project charter will also define the path of issue escalation.

Finalization of the Scope, as determined during the Plan and Architect & Configure stages, may require the project team to revise the estimates and resource requirements for the remaining stages of the project.

Statement of Work
18 Change Control Process
Any additional or modified Scope of Services, changes in Assumptions & Dependencies, and/or Timeline shall be documented in a separate written and fully executed Project Change Order Form (“Change Order”) using the template set forth in Appendix C. Such form shall include the written approval of an authorized representative of Client before CSLLC will begin any additional work or incur any charges or fees outside the Scope of this SOW. Client and CSLLC agree to the following process:
• Step 1: CSLLC will prepare a description of the necessary change including Scope, process, cost, impact to the Timeline, and impact to resources along with a list of alternative solutions.
• Step 2: The Client Project Manager will review and approve or reject within his or her authority or escalate to the executive sponsor for review and approval or rejection.
• Step 3: Client will review and approve or deny the request for the additional or modified Services within three (3) business days so as not to cause any unnecessary delay in the Timeline.
• Step 4: Any approved additions or modifications to the Scope of Services will be documented pursuant to a Change Order and become an addendum to this SOW.

Status Reporting
During the Plan stage of the project, the CSLLC EM will coordinate with the Client Project Manager to establish a set of regularly scheduled meetings to present project status and risks. These will include, but are not limited to, a monthly steering committee meeting, a weekly project core team status meeting, weekly workstream meetings, a weekly project management meeting, and additional meetings, as needed. The CSLLC EM will report out at the steering committee and team status meetings on the status, activities, issues, and other relevant project information.

The monthly steering committee meeting will include a review of the Timeline and status, accomplishments to date, upcoming project activities and milestones, review of issues and risks requiring action from the steering committee members, potential changes to Scope and a review of the financials of the project. The steering committee will include a readout by the CSLLC EM on the state of the project; participation may be in person or remote.

A weekly status meeting will be held with the core team and the Client Project Manager to assess recent accomplishments, issues, risk factors and to ensure that the work planned for the next two (2) weeks is properly resourced. Risk factors and roadblocks will be assessed and either resolved or escalated. In addition to these meetings, meetings with functional teams will be scheduled to review and resolve any open issues.

All meeting agendas, status reports, steering committee presentations, issues log, project plan and the project charter will be stored on the project collaboration site as referenced in Section 4.0 Assumptions & Dependencies.

Statement of Work
19 Knowledge Transfer
Over the course of the project, CSLLC will conduct functional and technical KT through architect workshops, CCS, weekly workstream meetings and during the Test stage.

Additional KT will occur during the Post-Production stage as needed. To formalize KT, CSLLC will complete and require sign off by the Client of the KT workbook. CSLLC and Client will utilize the KT workbook to track progress and topics during each stage. If Client requires additional KT, this may result in a Change Order. Process documentation (e.g., operational guides and process flow diagrams) is not in Scope for KT, except for the integrations operations guide for CSLLC owned integrations.

3.3 Project Schedule
The time required to complete the project (the “Project Schedule” or “Timeline”) is based on the contents of this SOW. Unless otherwise mutually agreed upon, Services under this SOW are expected to commence on June 24th, 2024 by the Client and CSLLC. The estimated duration and estimated start date of each project stage is listed below, pending execution of this SOW and availability of Client resources and training. The Client payroll schedule may require an adjustment on the estimated start date for the Deploy and Post-Production stages. If the Client payroll schedule requires an adjustment, the number of weeks defined in the Timeline below will determine the new stage start and end dates for the Deploy and Post-Production stages.

Client resources will attend Workday fundamentals training for the functional areas in Scope prior to the start of the Architect & Configure stage, and Client resources which are assigned to design/build integrations (as indicated in the integrations Scope) will complete the required Workday training (report writing, calculated fields, and integration- related classes) prior to the start of the Architect & Configure stage. If training is not attended, this could result in a significant impact to the time and cost of the project.

All parties will make every reasonable effort to attend required meetings and complete all duties assigned with sufficient notice.

The project will be completed in two (2) phase(s) – as presented below. The Timeline for the project is as follows:

Phase 1 – Financials:

Strategy Plan Architect &
Configure Test Deploy Post
Production
Total
Weeks
Weeks 7 6 20 13 5 8 59
Start 6/24/2024 8/12/2024 9/23/2024 2/10/2025 5/12/2025 6/16/2025 Finish 8/9/2024 9/20/2024 2/7/2025 5/9/2025 6/13/2025 8/8/2025 Project Timeline

Statement of Work
20 Phase 2 – HCM/PATT:

Note:
• Integrations will be developed and scheduled dependent on the batches defined in the integrations planning sessions and third-party vendor availability. • Functional architect hours are assumed to be heavier in the Architect & Configure stage and will reduce to high level oversight following CCS.

3.4 Resources
For a definition of Client roles and responsibilities assigned to the project, see Appendix A.

4.0 Assumptions & Dependencies
The Services, labor estimates, and Pricing presented in this SOW are dependent on the following assumptions being true:

Client will:
a. Timely complete each item listed as a Client responsibility in Section 2.0 subject to the deliverable acceptance procedures.
b. Have the necessary project and executive management support to review and make timely decisions as well as coordinate the activities of this project with other Client projects which may be occurring simultaneously.
c. Have the necessary resources available in each stage, according to how they are identified in the staffing and project plans. Resources will be empowered and capable of making decisions on behalf of the Client. Resources will include, but are not to be limited to, functional and technical leads, and applicable business process and SMEs. If resource and/or priority conflicts occur, they will be discussed and resolved with the project steering committee.
d. CSLLC resource availability and overall staffing approach are determined by the jointly created project plan.
e. Provide all required technology needs, connectivity, and network access to all relevant Client applications necessary for the deployment. The CSLLC consultants will have access to software including security rights and passwords where required in order to complete the deployment. CSLLC resources will provide their own laptops. If Client owned laptops or virtual machines are required to be used, this may result in a Change Order. f. Be responsible for workstation compliance to Workday’s minimum requirements. Client has determined their technical needs will be met, and internal systems and policies, as well as third-party vendors, are compatible with Workday. Any technical issues which may arise during implementation are to be resolved by Client.
g. Lead the coordination with any Client’s third-party vendor involvement required to complete the Services. Client understands that some of their third-party vendors may charge fees for the completion of Services and such fees are the sole responsibility of Client.

Strategy Plan Architect &
Configure Test Parallel Deploy Post
Production
Total
Weeks
Weeks 2 5 17 9 9 5 7 54
Start 1/20/2025 2/3/2025 3/10/2025 7/7/2025 9/8/2025 11/10/2025 12/15/2025 Finish 1/31/2025 3/7/2025 7/4/2025 9/5/2025 11/7/2025 12/12/2025 1/30/2026 Project Timeline

Statement of Work
21 h. Unless otherwise agreed by CSLLC’s internal security organization, the Client shall use CSLLC’s secure transfer site for the secure exchange of sensitive employee data with the CSLLC support personnel. Client will agree to limit use for data conversion or production support purposes only for the duration of the activities required. CSLLC will inactivate the secure transfer site within thirty (30) days after the support activities are completed. Client will not use CSLLC’s site for the transmission of any integration files for third-party vendors. CSLLC is not responsible for back up, archiving, or maintenance of files stored on the secure transfer site. In the event CSLLC utilizes its internal “Daytona” tool for data conversion (“Daytona”), Daytona and all of its components must be installed on the CSLLC secure cloud server and utilized solely within CSLLC’s secure transfer site. Further, Daytona IP addresses must be added to the tenant whitelist. Daytona uses its own implementer account that must be excluded from multi-factor authentication. i. Use CSLLC provided central repository solution for non-sensitive project document sharing and CSLLC’s secure transfer site for the secure exchange of sensitive Client employee data with the CSLLC project team.
j. Be responsible for any job catalog and/or compensation restructuring efforts, with initial draft of restructure completed by the start of project. If support is needed from the CSLLC project team and/or these milestones are not met, this may result in an increased level of effort and adjustments to the Timeline.
k. Perform all the Client responsibilities in the stages identified, and per the project plan including but not limited to sign off at the completion of each stage, provision of data files, provision of test scenarios, execution of test scenarios and integration testing. l. Be solely responsible for testing and any client legacy Move-to-Production activities, which shall include configuration, business processes, data, reports and integrations. Client will provide written acceptance of test results to CSLLC prior to any Move-to-Production. m. In the event CSLLC is required to assist Client with Move-to-Production activities, Client will provide written approval if CSLLC’s assistance is required during Client’s Move-to- Production activities. Upon completion of Move-to-Production activities, Client will verify Production results and shall be solely responsible for Production accuracy. Client shall provide written acceptance to CSLLC after such Move-to-Production activities have been completed.
n. Adhere to the outlined meeting schedules defined in the Section 2.0 Services and Responsibilities table; any variation could result in an impact to cost and Timeline. o. Coordinate participation from key stakeholders and project team to attend a single CSLLC led alignment session and CCS per functional area. If additional workshops or sessions are needed, the Client Project Manager will work with the CSLLC EM to determine impact to project hours and Timeline.
p. Use CSLLC tools and templates. If the Client requires CSLLC to utilize Client specific/owned tools and templates, the Client Project Manager will work with the CSLLC EM to determine impact to project hours.
q. Provide all CSLLC OC&T consultants with implementer access to all Workday tenant environments.

Strategy Assumptions
a. Client executive sponsor(s) will be available to participate in plan/visioning sessions to set goals and objectives, vision, and help guide the governance and decision-making framework for the project.

Statement of Work
22 b. Project does not include any current state process mapping sessions, or any development of process tools and templates (e.g., checklists, job aids, user knowledge articles). c. Project does not include any human resources program policy reviews or re-writing. d. Non-Workday technology assumptions –
• Client will extract and consolidate required documentation from non-Workday human resources systems to CSLLC as required for review and analysis. • Issues and progress tracking for technology changes to be made with third-party vendors to be managed and owned by Client.

Program Management Assumptions
a. Client will provide client PMs for all client owned projects & workstreams. b. Client PMs will provide clear and accurate status of client owned workstreams to the CSLLC program manager on a weekly basis or mutually agreed upon schedule.

Payroll Assumptions
a. Client is responsible for providing executive summaries for parallel reporting to the project leadership team. CSLLC will be responsible for providing delivered parallel reports from the CSLLC parallel ImPaCT tool.
b. Processing of payroll occurs from a centralized office for all locations included in the payroll Scope.
c. Gathering of payroll requirements and testing will be owned by a centralized office for all locations included in the payroll Scope.
d. KT will be delivered to a key resource and Client is responsible for training their payroll organization.
e. Tax filing will be handled by a third-party vendor. Workday does not currently support tax filing as part of the core Workday payroll module and only provides basic tax balancing reports.
f. If 1099 tax elections and payroll processing are required, those will be handled by a third- party vendor. Workday does not currently support 1099 tax elections or processing as part of the core Workday payroll module.
h. Payroll commitments, payroll obligations, and position budgets are not included in the Scope of this SOW. Client is responsible for the accuracy of the payroll data provided in the required format. Client is also responsible for reconciling all payroll data to the legacy system.
i. Only employees in Workday will be paid out of Workday payroll. Payments for any 1099-R retirees, spouses and/or dependents will be processed by a third-party payroll provider. j. Client is responsible for payroll compliance review with internal or external counsel. k. Delivered Workday Fair Labor Standards Act (“FLSA”) functionality will be used.

Absence Assumptions
a. Client has no more than eight (8) unions.
b. Pre-configured absence business processes and Workday security will be utilized with limited minor modifications.
c. Regulatory leave types will be implemented using a consolidated approach.

Statement of Work
23 d. Regulatory sick plans will be consolidated at the level utilizing the most generous entitlement for the populations included.
e. Entitlements will not be configured for leaves of absence. These will be implemented utilizing status tracking only.
f. Multiple positions are out-of-Scope.
g. All worker populations will share Paid Time Off (“PTO”) and sick plans. This includes CSLLC configuration for different leave/sick plans for the 8 bargaining groups.

Time Tracking Assumptions
a. Request overtime is not included.
b. Client has no more than eight (8) unions.
c. Pre-configured time tracking business processes and Workday security will be utilized with limited minor modifications.
d. Police and Fire Department time entry will be entered and calculated external to Workday. e. Time tracking configuration is limited to hourly non-exempt populations. f. Time entry against projects is included.

Scheduling Assumptions
a. Pre-configured scheduling business processes and Workday security will be utilized with limited minor modifications.
b. Workday defined default domain security will be used.

Integration Assumptions
a. Client integration functional owners are available for integration discovery and design sessions throughout the Plan and Architect & Configure stages. b. Client integration resources are Workday trained before they are assigned integration development access in Implementation tenants.
c. Client/third-party vendor design meetings for all CSLLC owned integrations will not exceed eighty-five (85) hours across all integrations. If more hours are needed, a Change Order may be required to adjust the Timeline and level of effort. d. Requirements and specifications for all in Scope integrations will be available by the end of the Plan stage. If not, a Change Order will be required to adjust the Timeline and level of effort.
e. Client integration workstream meetings will be limited to a maximum of two (2) hours per week for all integration resources.
f. No integrations that are Go-Live critical are assigned to Client. g. Inbound integrations are scoped using Workday standard fields. If Workday custom objects are needed to store data, the integration effort will need to be revised. h. Requirements and specifications for all in Scope integrations will be available at the start of Plan stage.
i. Integrations (both CSLLC and Client owned) may be separated into batches depending on priority, critical and Project Schedule impacts; the Project Schedule could be adjusted due to delays in requirements or Client accessibility. Batches will have varying timelines to accommodate prioritization and architect workshop schedules to reduce rework. Wherever

Statement of Work
24 possible, integrations which directly impact payroll results should be given priority to ensure applicable integrations are ready prior to the start of Parallel Testing. j. Integrations dependent upon the FDM may follow separate milestones and testing cycles.

Authentication Assumptions
a. CSLLC will advise Client of the Workday options for a single sign-on solution and will perform the applicable authentication setup within the Workday tenant. b. Multi-Factor Authentication (“MFA”) is managed by Client and if Workday MFA setup is required this will result in an increased level of effort. c. Client is responsible for all implementation work outside of the Workday tenant (e.g., Security Assertation Markup Language (SAML) setup, identity server). Client will provide the appropriate resource commitments and skill sets depending on the single sign-on option selected during design.

Data Conversion Assumptions
a. Client’s project team will provide a single data file to CSLLC for each template regardless of the number of legacy systems.
b. Client is responsible for data validation and mapping requirements for all data. Client will provide all translation values and mapping to CSLLC within the design configuration workbooks.
c. Client is responsible for updating, testing, and maintaining delivered data extraction scripts/accelerators to accommodate Client’s specific configuration or design. d. The CSLLC consultant project team will then load the provided information directly into the Workday tenant using Workday’s web services. As data conversion is an iterative process, Client will be responsible for all data cleanup identified during the process and is responsible for supporting multiple data extracts from the legacy systems.

Testing Assumptions
a. Client will provide a Test Lead unless otherwise stated in this SOW who is responsible for overseeing test scenario creation and consolidating scenarios to be used for End-to-End, User Acceptance Testing, Parallel and Regression Testing, managing testers, and reporting out testing metrics.
b. Client and CSLLC will implement a Change Control Process to review and approve proposed enhancements coming out of testing to identify the priority and potential impact to the Timeline, resources, and level of effort prior to changes being made. c. Client will finalize and sign off on End-to-End Testing prior to entering Parallel Testing.

Exceptions must be agreed upon by CSLLC if additional End-to-End Testing is required prior to entering Parallel Testing.
d. Testing will be completed within the time specified in the Timeline. e. Client will coordinate participation from project testers to be co-located together on a remote basis, or at a mutually agreed upon shared site if CSLLC is able to travel in accordance with its internal policies and procedures. If additional support locations are needed for testing, the Client Project Manager will work with the CSLLC EM to determine impact to project hours and the Timeline.

Statement of Work
25 f. When a Workday update occurs, the only additional changes which will be included in the project are those which are automatically required by Workday. Any additional functionality is out-of-Scope.
g. Two (2) payroll Parallel Testing cycles during the Parallel stage are included in the Scope of this SOW. is responsible for providing any executive summaries for Parallel reporting to the project leadership team.

Government Deployment Approach Assumptions
a. Business process configuration is limited to the processes defined in Appendix D. b. The Workday pre-configured content will be leveraged as the basis for design and configuration within the Scope of this project. CSLLC will not be performing a traditional fit- gap analysis on Client business requirements. If the pre-configured tenant is not appropriate for Client, as determined by Client, additional Services may be required. Client is ultimately responsible for verifying that the pre-configured content is appropriate. c. Integrations will be designed in accordance with Client’s current system requirements and shall not be reformatted unless Workday delivered templates are available for the integration. If Client's current system requirements are no longer supported, the effort will need to be assessed and the Timeline may be impacted.
d. Architect workshops and CCS will each take place over a three (3) week period during the Architect & Configure stage and may require overlap of individual workstreams.

General Assumptions
a. Unless the Parties agree otherwise, support hours are assumed to be within standard business hours, defined as follows, with response time based on forecasted hours:
i. 9:00 AM Pacific Time (PT) through 5:00 PM PT.
ii. Monday through Friday.
iii. Excluding CSLLC holidays. A list of CSLLC holidays will be made available to Client upon request.
b. Pre-configuration: CSLLC team will utilize CSLLC’s leading practices-based pre- configuration to conduct the design sessions in the Architect & Configure stage. The approach for the design sessions will be to review pre-configuration and then adjust the configuration in areas which are in Scope but do not meet the Client’s business requirements.
c. Design workshops will take place during a one (1) week period within each Workset and may require overlap of individual workstreams.

5.0 Response Targets
a. Response targets for implementation Post-Production support are limited to standard business hours, defined as follows:
i. 9:00 AM PT through 5:00 PM PT.
ii. Monday through Friday.
iii. Excluding CSLLC holidays. A list of CSLLC holidays will be made available to Client upon request.
b. Issue response expectations:
i. Client will ensure the issue is genuine, assign the proper priority, and assign issue to the appropriate CSLLC resource for further resolution.

Statement of Work
26 ii. As issues are assigned to CSLLC, CSLLC will use commercially reasonable efforts to acknowledge receipt of the issue.
iii. After performing an analysis of the issue CSLLC will provide an estimated resolution time.

6.0 Term and Termination
a. This SOW shall commence on the Start Date identified above and shall continue through January 30, 2026(the “Term”), unless terminated sooner pursuant to the Agreement.

7.0 Pricing & Invoicing
a. Consolidated Pricing is attached.
b. Workday Delivery Assurance and Workday specific training services and fees will be covered under a separate agreement between Client and Workday.
c. Invoices will be emailed to the following address(es): [email protected].

Any other mailed correspondence will be delivered as follows below:
206 E Cook St.

Santa Maria, CA 93454
d. Any additional Services rendered in addition to the Scope as defined in this SOW will only be performed after the Parties agree to a Change Order utilizing the rate table to build the cost as identified below. Unless otherwise agreed in a Change Order, starting twelve (12) months after the Start Date and every twelve (12) months thereafter, the rates for additional Services provided on a time & material basis shall be automatically increased for inflation based on the percentage change in the then-prior twelve (12) month period to the index of inflation (CPI-AHE for U.S.-based Services). The relevant rates shall be increased by the same percentage as the positive percentage difference between the applicable inflation index for the then-current year and the inflation index on the date that was twelve (12) months prior to the then-current year:

Rate Card
Executive $388
Strategy Architect $352
Strategy Manager $308
Senior Functional Architect (Consulting
Director)
$296
Engagement Director (Portfolio Director) $320
Engagement Manager $268

Statement of Work
27 Rate Card
Functional Architect $288
Senior Principal Consultant $236
Principal Consultant $188
Consultant $148
Associate $128
e. Any and all fees associated with Client’s e-invoicing, portal, or payment solution will be the responsibility of Client, without dispute. CSLLC will provide all necessary documents or invoices to confirm the fees, if such fees are incurred.
f. [CLIENT TO INSERT PO NUMBER (“PO#”) HERE, IF REQUIRED – Confirmation will allow for timely and accurate invoice submission. If Client requires a PO#, Client will send a copy of the PO# to [email protected]. If a PO # will not need to be generated, please make a note in this section.]

8.0 Expenses
It is expected Services will be provided primarily on a remote basis. If travel is required, all reasonable travel expenses incurred by CSLLC related to the performance of the Services defined herein, shall be invoiced to Client. All such travel will comply with CSLLC’s Travel and Expense Policy, which shall be made available to Client upon request. All fees or penalties incurred due to cancellations or changes of travel at Client’s request shall be invoiced to Client.

9.0 Signatures
IN WITNESS WHEREOF, the Parties have duly executed this SOW by their respective authorized representatives as of the SOW Effective Date.

Collaborative Solutions, LLC City of Santa Maria

Authorized Signature Authorized Signature

Name Name

Statement of Work
28 Job Title Job Title

Date Date

Appendix A – Description of Roles
Client Roles
Client personnel are experts on Client business/technologies and as such will have responsibility for providing project management, non-Workday functional, technical, and culture expertise to the project.

Client project team members and cross-functionality representation are currently identified as follows:
(Note that project teams’ roles could be specific to implementation needs.)

Client Team Member Description of Role
Steering Committee,
Senior Design Reviewers,
Key Stakeholders, Executive
Sponsor
The steering committee provides funding and support to the project.

Responsibilities include:

Obtaining appropriate funding and approvals
Ensuring all appropriate resources are available for the project Resolving issues which are impeding the progress of the project Providing overall direction to the Client Project Manager Sign off on key Deliverables/project milestones
Assuring project delivery and quality control
Attending steering committee meetings
Project Manager

The Client Project Manager is a dedicated resource focused specifically on the Workday implementation. While CSLLC understands there are many other activities linked to the implementation, this resource needs to be dedicated full-time to the project. Responsibilities include the following:

Establishing and managing the project details, Deliverables, schedules, tasks, assignments, and execution
Coordinating business teams and support teams
Driving the implementation of the optimized processes
Managing the resolution of issues
Anticipating and resolving issues which could impact the project budget, schedule, Scope, or quality
Functional Team
(Global Process Owners,
Process Leads, and
SMEs/Business Analysts)

The functional team are those familiar with Client business processes and systems. These individuals provide information to the CSLLC Functional Consultant(s) to configure the Workday solution. Responsibilities include:

Communicate functional requirements which need to be configured in Workday

Statement of Work
29 Client Team Member Description of Role
Describe current business processes and work with team to simplify and improve
Work with CSLLC consultants to help map and load data into Workday
Actively participate in all testing activities
Pre-validate extracted data files prior to providing it to CSLLC; then validate data after it has been converted into Workday solution Contribute to identifying and executing test scenarios for functional areas
Perform end user training
Participate in KT
Technical Team
(Integration Lead, Integration
Engineers/Developers, and
Data Conversion Specialist)

Technical resources perform the following:

Support the conversion and loading of data contained in existing systems
Design and develop custom integrations as outlined within the Scope section of this SOW
Develop custom reports
Manage Client communications
Participate in KT
Actively participate in testing activities
Note: Resource experience, data quality and the amount of transformation required could impact the actual resources needed to support the data conversion efforts.

Internal Auditor

The Internal Auditor works with the project team to ensure proper procedures are followed and proper documentation is created for the implementation of Workday and is responsible for providing compliance- related guidance and expertise to the project team.

Test Lead The Client Test Lead develops and manages the overall Client test strategy and plan. Responsibilities include:

Establish an approach to testing
Define resource requirements for testing
Establish the test schedule
Conduct overall execution of the Client prescribed End-to-End (including integrations), Production Dress Rehearsal, and Parallel Test process for either Workday payroll or payroll interface from start to end of the test period
Facilitate testing coordination and progress meetings
Successfully manage defect resolutions
Resolve test issues via coordination of Client and CSLLC teams as required to complete testing for successful completion of Workday Test
Define the overall test strategy
Define test approach, roles, and responsibilities
Define test tools and scenarios by tester and success criteria for each test stage

Statement of Work
30 Client Team Member Description of Role
Define and report test metrics to the project team and project executives
Organizational Change Lead The Client Organizational Change Lead is focused on planning and executing the change management and communications activities and is the primary counterpart to the CSLLC Organizational Change Lead (if CSLLC OC&T is in Scope) and is responsible for providing primary insight into the Client’s culture, operations, and competing projects or interests. The Client Organization Change Lead is the primary liaison between the project team and other internal resources needed to execute and deploy the various change management and communications activities and is ultimately responsible for all change management and communications-related Deliverables.

Training Lead The Client Training Lead is focused on planning and executing the end user training activities and is the primary counterpart to the CSLLC Training Lead (if CSLLC OC&T Services are in Scope) and is responsible for providing primary insight into the Client’s training resources and preferences, as well as competing projects or interests related to end user training. The Client Training Lead is the primary liaison between the project team and other internal resources needed to plan, execute, and deploy the various training activities for the deployment and is ultimately responsible for all training- related Deliverables. Client may choose to assign the Client Organizational Change Lead and Client Training Lead roles and responsibilities to a single actual resource.

Training Communications,
and Change Management
support Resources
Depending on the specific strategies and plans Client establishes as part of its OC&T program, additional resources will be needed at various times throughout the project lifecycle to support and execute the communications, change management, and training plans. These roles often include:

Training Developers responsible for developing and revising the end user training collateral as defined in the training curriculum plan Communications Leads/Developers responsible for developing, revising, and deploying the end user communications collateral as defined in the communications plan
Trainers and Super Users responsible for gaining advanced familiarity with the new systems and user support tools, and in turn planning and delivering pre-Go-Live and ongoing training to end user audiences
Change Champions responsible for generating awareness and support around future changes within their designated areas of influence

Cognizant Roles

Cognizant resources are process/software specialists and are responsible for providing functional and technical expertise to the project.

Statement of Work
31 Team member Description of role
Portfolio Director Cognizant provides a portfolio director to serve in an advisory role and escalation point on all Workday deployments to ensure success by working collaboratively with Client executives, Client project manager, Workday leadership and Cognizant’s
engagement manager. Supports Cognizant engagement manager to resolve any escalated issues in a timely manner and sign-off on key deliverables throughout the project per the Cynergy™ for Workday methodology. The Cognizant portfolio director is an active and visible resource on the project and is expected to participate in regularly scheduled steering committee meetings and milestone activities to ensure the project is meeting the goals/objectives and timeframes outlined at the beginning of the project.

Program Manager The Program Manager oversees the successful delivery of the program. This role includes:
• Defining and managing program governance controls
• Planning the overall program and monitoring progress to ensure goals are met

• Overseeing project managers
• Meeting with sponsors and leads to discuss program
status

• Working with the team to produce accurate and timely
reporting of program status

• Analyzing program risk
• Managing escalations and working to drive issues to
closure
Functional Architect Cognizant provides a functional architect to work with Client in leading and driving the solution based on their broad Workday experience along with deep implementation expertise. The functional architect will work with Client to drive Client solutions and provide design/strategy support. The functional architect is responsible for driving the design and business process sessions along with the Cognizant consultants.

Engagement Manager Cognizant provides a designated engagement manager (EM) who is responsible for working with the Client project manager to ensure the timely success of the project. The EM guides the project by providing Workday best practices as they relate to project management techniques, the use of Cynergy™ tools and templates, interaction with Workday Product Strategy and Development, and leveraging Cognizant Cynergy™
implementation methodology. The EM staffs the project and guides project activities to ensure the timely completion of the project in accordance with the project charter and project plan.

The EM is liaison with Workday on project-related issues that may be outside the direct control of the project team (e.g., coordinating the resolution of issues with product development).

The EM partners with the Cognizant consultants and Client project leads to provide additional guidance on Workday implementation best-practices, industry standards, and facilitate knowledge sharing among Workday clients as appropriate. The EM keeps the

Statement of Work
32 Team member Description of role
Client project team apprised of Workday updates, tenant changes, and can provide guidance on using the Workday Community.

Project Associate Cognizant provides a project associate. The project associate is responsible for coordinating with the Cognizant consultants to maintain the forecast, maintain status report details, and run weekly financials reports. The project associate may also attend meetings such as steering committee meetings to capture meeting minutes allowing the engagement manager to focus on leading the discussion. Performs engagement management tasks as assigned by EM.

Executive Sponsor The point of contact for Cognizant’s executive management team.

Works with the Cognizant EM and Client PM to ensure that escalated issues do not impact the project timeline.

Test Manager The test manager is responsible for drafting, presenting, and getting Client sign off of the testing strategy. The strategy will include details of each testing segment: namely unit testing, end to end testing, user acceptance/experience testing and payroll parallel testing. For each of the phases, the strategy will define testing participant, roles and responsibilities, data and tenant requirements, acceptance criteria and signoff process. Tools used throughout the Test stage will be identified. Working with the project managers, the Client test lead will ensure that the testing team is identified and has required levels of knowledge to execute the testing scenarios. This is repeated for both UAT testing and payroll parallel cycles. Throughout the phase, the test manager manages issue management, issue resolutions and retest
verification. They will report on test management and metrics, and adherence to acceptance criteria.

Functional Consultant(S) Responsible for working with Client to lead and drive Client business process design and integration requirements. The principal consultant(s) lead business process workshops and workflow iterative development and develop business process templates that are a key input into the configuration of the solution.

The principal consultant(s) configures Workday according to Client requirements and documents any areas where requirements are not met. They provide best practices to enhance Client access to the features/functions of the Workday solution. They support the testing, data conversion, and integration development efforts.

They escalate issues that may impact the go-live date to the Cognizant EM.

Integration Consultant(S) Responsible for working with the Cognizant principal consultant(s) and the Client business analysts to gather and document integration requirements. The integration consultant(s) leads the configuration and supports the testing of Workday packaged integrations and the development of Client integrations as defined by the statement of work.

Data Conversion Consultant(S) Responsible for converting Client data into Workday based on the configuration and mapping done by the Cognizant principal consultant(s) and the Client business analysts. The Cognizant data conversion consultant(s) works with the Client business

Statement of Work
33 Team member Description of role
analysts to resolve data related issues. They work with Client to resolve loading errors and reload the appropriate tenants.

Change Architect The change architect is a senior professional resource of the organizational change and training (OC&T) practice who supports the OC&T team to ensure the quality of consulting services and deliverables. The change architect provides leadership and expertise to both Cognizant’s OC&T Lead and the client’s organizational change, communications and training resources.

The change architect supports the client relationship, ensures client satisfaction throughout the duration of the project, and is the first point of escalation for risks and issues related to the OC&T workstream.

Organizational Change and
Training Lead
The organizational change and training (OC&T) lead is focused on defining strategy, establishing plans, and driving execution of change management and end-user training activities. He or she provides guidance to the relevant counterparts on Client’s OC&T team and guides the work stream through the specific
methodology at each stage throughout the project, as defined in the project scope. The OC&T lead is also responsible for the administration of the workstream, including timeline management and status reporting as defined by the overall project management team.

Training Lead The training lead is focused on planning and executing the end- user training-related activities. Similar to the organizational change lead, the training lead provides guidance to his or her counterparts on Client’s OC&T team and guides the training workstream throughout the project as defined in the project scope. For Client’s project, the organizational change lead and training lead roles and responsibilities will be combined under a single resource.

Organizational Change and
Training Developer(S) and
Principal(S)
As needed and specified by project scope, additional
organizational change principal(s) and/or training
developer(s)/principal(s) will join the project team at key times during the project cycle. These resources are led by the OC&T lead(s) and are responsible for understanding the Workday configuration and Client business processes to create and support the change management, communications, and training
deliverables as specified in the project scope and/or subsequent strategies and plans once they have been completed. These resources may also be called up on to support user experience sessions, train-the-trainer, and/or training delivery as indicated by the project scope and the specific strategies designed for Client during the initial project stages.

Strategy Architect The strategy architect provides oversight and direction for strategy engagements to other Strategy team members and delivering trusted business advisor support to clients. They partner with senior executives to understand organizational perspectives and recommend best-fit methods to execute business strategies, improve operations and performance, and optimize roles and responsibilities. The architect works with clients to understand the people issues associated with technology implementations,

Statement of Work
34 Team member Description of role
specifically Workday and ancillary systems including but not limited to role re-definition, skill gaps, and change readiness. The architect continues to partner with senior executives and program managers to understand an organizations inherent capability regarding governance, decision making, data integrity, and technology development to design strategies to set the stage for successful technology implementations.

Strategy Lead The strategy lead supports the strategy architect and client leadership to understand organizational perspectives and recommend best-fit methods to execute business strategies, improve operations and performance, and optimize roles and responsibilities. They will participate in development of the strategy, business initiatives, and organizational changes needed to gain leadership alignment, enable change leadership, promote stakeholder and employee engagement, enable further
organizational change programs and plans. They lead
assessments and meetings, developing deliverables, and
delivering trusted business advisor support to clients. This lead provides knowledge transfer during transition from strategic engagement to implementation engagement ensuring client requirements, decisions, and culture are shared to enable a seamless transition between projects.

Workday Roles
If Workday is contracted by the Client, Workday, under a separate contract, will provide Delivery Assurance services. Workday core responsibilities include:

Workday Team Member Description of Role
Delivery Assurance Group Comprised of Workday implementation specialists, the Workday Delivery Assurance Group works with Client towards the implementation of the Workday solution. The Workday Delivery Assurance Group conducts a series of quality assurance reviews at major project milestones, when the group reviews project documentation, product configuration, and business processes. The Workday Delivery Assurance Group is responsible for the development and enhancement of the Workday implementation methodology and works closely with product strategy and development in helping steer product direction.

Note: Delivery Assurance will be a separate agreement to be contracted directly with Workday.

Appendix B – Integrations and Custom Reports
Integrations

The following integrations are in Scope. Please refer to the column labeled “Owner” to identify if the integration is Client assigned or CSLLC assigned.

Statement of Work
35 Phase 1 – Financials:

Phase 2 – HCM/PATT:

ID# Integration Name Third-Party
Vendor
Functional
Area Integration Data Type Tool Owner Cloud Connector Name Notes INT001 Basic SSO/SAML Setup Security Basic SSO SAML Setup Outbound Custom
Setup CSLLC
INT002 Active Directory Outbound HCM Active Directory Outbound Cloud Connect

CC CSLLC
INT003 Active Directory Inbound HCM Active Directory Inbound Custom Studio CSLLC INT004 Financials (AP) Check Layout Workday Birt Financials Custom Check Layout_Low

BIRT CSLLC
INT005 Financials Positive Pay without Voids OutbBank of America Financials Positive Pay without Voids Outbound Custom

EIB/DTS CSLLC
INT006 Financials ACH Outbound Bank of America Financials ACH NACHA Payment Outbound Cloud Connect

CC CSLLC
INT007 Bank Statement Inbound Bank of America Financials Bank Statement Inbound Cloud Connect

CC CSLLC
INT008 1099 Filing Outbound IRS Financials Electronic Filing 1099 Outbound Cloud Connect

CC CSLLC
INT009 Journal (Charges/Credits) Inbound Wasteworks,
ActiveNet
Financials Accounting Journals Inbound Custom Studio CSLLC INT010 Ad Hoc Bank (Payments/Refunds) InboundAssetworks, Fuel Master,
Progressive
Solution, etc.

Financials Adhoc Bank Transaction Inbound
Cloud Connect

CC CSLLC
INT011 Procurement Cards Outbound Financials Credit Cards Masked Outbound Cloud Connect

CC CSLLC
INT012 Procurement Cards Inbound Financials Credit Cards Masked Inbound Cloud Connect

CC CSLLC
INT013 Streetsaver Inbound Streetsaver Financials Business Assets Inbound Custom Studio CSLLC INT014 Community Development Inbound Community
Development
Financials Other Inbound Custom Studio CSLLC
INT015 Debtbook Inbound Debtbook Financials Other Inbound Custom Studio CSLLC INT016 Teller Financial Transaction Inbound Teller Financials Adhoc Bank Transaction Inbound Custom
Studio CSLLC
INT017 Sprypoint Billing Inbound Sprypoint Financials Other Inbound Custom Studio CSLLC INT018 Payroll Check Layout Workday Birt Payroll Check Custom Check BIRT CSLLC

Statement of Work
36 Integration Tool Key:
• BIRT = Business Intelligence Reporting Tools
• CC = Cloud Connect
• EIB/DTS = Enterprise Interface Builder/Document Transformation Service • Setup = Web Services or Integration system user setup • Studio = Workday Studio
• Support = Hours allocated for assistance at the direction of Client

The interfaces/integrations required for this project include:
• Cloud Connect – CC provides Workday customers with the same level of support as they would receive in the core Workday application. Such Workday integrations are (i) part of the Workday hosted application Service and (ii) provided with ongoing support by Workday in accordance with Workday’s then- current Support and Service Availability Policy. While Workday integrations are designed and developed as part of the subscription license, CSLLC anticipates some amount of time dedicated to configuring and testing the integrations during the implementation.

ID# Integration Name Third-Party
Vendor Functional Area Integration Data Type Tool Owner Cloud Connector Name Notes INT001 E-Verify HCM eVerify Outbound Cloud Connect CC CSLLC INT002 Medical, RX Outbound Benefits Medical Or Dental Or Vision Or Rx Outbound Cloud Connect

CC CSLLC
INT003 Dental Outbound Benefits Medical Or Dental Or Vision Or Rx Outbound Cloud Connect

CC CSLLC
INT004 Vision Outbound Benefits Medical Or Dental Or Vision Or Rx Outbound Cloud Connect

CC CSLLC
INT005 Life, AD&D Insurance Outbound Benefits Life Or ADandD Outbound Cloud Connect

CC CSLLC
INT006 HSA or FSA Eligibility and Contributions Outb Benefits FSA Or HSA Or Transit Or Parking Outbound Cloud Connect

CC CSLLC
INT007 COBRA Events Outbound Benefits COBRA Events Outbound Cloud Connect

CC CSLLC
INT008 COBRA Initial Rights Outbound Benefits COBRA Initial Rights Outbound Cloud Connect

CC CSLLC
INT009 ACA Outbound Benefits ACA Outbound Cloud Connect CC CSLLC INT010 401k Demographic Outbound Benefits Retirement Savings Financials Outbound Cloud Connect

CC CSLLC
INT011 401k Elections and Loans Inbound Benefits Retirement Savings Inbound Cloud Connect

CC CSLLC
INT012 401k Contributions Outbound Payroll Retirement Savings Financials Outbound Cloud Connect

CC CSLLC
INT013 Payroll ACH Outbound Payroll ACH NACHA Payment Outbound Cloud Connect

CC CSLLC
INT014 Payroll Positive Pay without Voids Outbound Payroll Positive Pay without Voids Outbound Custom

EIB/DTS CSLLC
INT015 Payroll Check Layout Birt Payroll Check Custom Check Layout_Low

BIRT CSLLC
INT016 Tax Filing Periodic Outbound Payroll Tax Filing Periodic Outbound Cloud Connect

CC CSLLC
INT017 Tax Filing Quarterly Outbound Payroll Tax Filing Quarterly Outbound Cloud Connect

CC CSLLC
INT018 Vector Training Record Inbound Vector Solutions HCM Training Or Learning Inbound Custom Studio CSLLC INT019 Background Check Bidrectional Recruiting Employment Screening WD Software Partner Bidirectional Custom
Setup CSLLC
INT020 Timekeeping System Outbound Telestaff HCM Demographic Outbound Custom EIB/DTS CSLLC INT021 Timekeeping System Inbound Telestaff Time_Tracking Time Tracking Inbound Custom Studio CSLLC INT022 Absence Balances Outbound Telestaff Time_Tracking Absence Outbound Custom EIB/DTS CSLLC INT023 Cloud Connect for Learning Learning CCLRN Bidirectional Setup CSLLC INT024 NeoGov Hires Inbound NeoGov Recruiting ATS Hires Only Inbound Custom Studio CSLLC INT025 NeoGov Requisitions Outbound NeoGov Recruiting ATS Requisitions Outbound Custom EIB/DTS CSLLC

Statement of Work
37 • Custom Integrations – Custom integrations are developed by CSLLC or Client using Workday’s tools such as Report Writer, EIB, DTS, or Studio.

Reports
The following report configuration is in Scope. Any hours identified for custom reporting support are inclusive of design discussions, requirements gathering and KT.

HCM Reporting

Report Name /
Configuration
Area Description
Organization Footprint HCM - Distribution Trends
and Analysis
Modified version of the Global Footprint
standard report to provide headcount by
location or hierarchy and job family group
Growth Rate by Job Family
Group
HCM - Distribution Trends
and Analysis
Standard report to provide headcount
growth by job family group by month
configured for custom dashboard
Headcount and Average YOS
by Age Range
HCM - Distribution Trends
and Analysis
Standard report to provide headcount and
average years of service by age band and
configured for custom dashboard
Headcount by Management
Level
HCM - Distribution Trends
and Analysis
Standard report to provide headcount by
management level and configured for
custom dashboard
Headcount Growth Analysis HCM - Distribution Trends
and Analysis
Modified version of the Headcount Growth
Analysis standard report to provide
headcount by month
Workforce Tenure – Monthly
Trend
HCM - Distribution Trends
and Analysis
Modified version of the Workforce Tenure –
Yearly Trend standard report to provide
headcount by tenure groups and month
Employee Population Trend
by Gender
HCM - Diversity Modified version of the Employee
Population Trend by Gender standard
report to provide headcount by gender and
month
Ethnicity / Management Level
Analysis
HCM - Diversity Standard report to provide headcount by management level and ethnicity and
configured for custom dashboard
Male / Female Distribution HCM - Diversity Standard report to provide headcount by gender and configured for custom
dashboard
Male / Female Workforce Job
Family
HCM - Diversity Modified version of the Male / Female
Workforce Majority by Country standard
report to provide headcount by gender and
job family
Manager Composition by
Ethnicity and Years of
Experience
HCM - Diversity Standard report to provide manager
headcount, distribution, compa-ratio, and
years in position by tenure ethnicity and
configured for custom dashboard
People Manager Proportions HCM - Diversity Standard report to provide manager headcount by gender and configured for
custom dashboard

Statement of Work
38 Report Name /
Configuration
Area Description
Hires by Age Group HCM - Headcount
Movement
Standard report to provide hires count by
age group and configured for custom
dashboard
Promotion Rate HCM - Headcount
Movement
Standard report to provide promotion rate
by quarter and configured for custom
dashboard
Voluntary Terminations by
Management Level
HCM - Headcount
Movement
Standard report to provide voluntary
termination counts by management level
and configured for custom dashboard
Quarterly Turnover Rates HCM - Headcount
Movement
Standard report to provide voluntary,
involuntary, and total turnover rates by
quarter and configured for custom
dashboard
Quarterly Turnover Rates by
Organization
HCM - Headcount
Movement
Standard report to provide voluntary,
involuntary, and total turnover rates by
supervisory organization and configured for
custom dashboard
Employee Movement HCM - Headcount
Movement
Standard report to provide hires, transfers,
and terminations and configured for custom
dashboard
Worker Proportion Trends HCM - Structured Dynamics Modified version of the Worker Proportion Trends standard report to provide
headcount of managers and employees by
month
Manager Headcount by
Management Level
HCM - Structured Dynamics Modified version of the Manager Headcount by Management Level standard
report to provide headcount by
management level and month
Span of Control by Job Family
Group
HCM - Structured Dynamics Standard report to provide management ratios by job family and configured for
custom dashboard
Span of Control by Range of
Direct Reports
HCM - Structured Dynamics Standard report to provide manager span of control and configured for custom
dashboard
Span of Control by Month HCM - Structured Dynamics Modified version of the Span of Control by Year standard report to provide manager
span of control by month
Span of Control – Manager
Outliers
HCM - Structured Dynamics Standard report to provide direct report counts and configured for custom
dashboard
Workforce Analysis
Dashboard
Custom Dashboard Configuration of a single custom
dashboard to accommodate the reports
listed above
Age Band Definitions Configuration Configuration of age bands to provide grouping for worker reports
Under and Including Age: 20
Age Incremented by: 10
Over and Including Age: 60
Trended Worker Configuration Configuration of Trended Worker settings and data generation

Statement of Work
39 Financial Reporting

Report Name Area Description
Data Audit - Funds Financial Accounting Listing of the funds in the tenant and the hierarchy structure for those funds.

Data Audit - Cost Centers Financial Accounting Listing of the cost centers in the tenant as well as the cost center manager
assignments, hierarchy structure and
related worktags established for those
cost centers.

Data Audit - Programs Financial Accounting Listing of the programs in the tenant and the hierarchy structure for those
programs.

Data Audit - Locations Financial Accounting Listing of all locations showing usage, type, hierarchy structure and address
information.

Data Audit - Grants Financial Accounting Listing of all grants in the tenant as well as the grant manager assignments, hierarchy
structure and related worktags established
for those grants.

Data Audit - Revenue
Categories
Financial Accounting Listing of all the revenue categories in the tenant as well the hierarchy structure.

Data Audit - Spend
Categories
Financial Accounting Listing of all the spend categories in the tenant as well as their usages and
hierarchy structure.

Find Projects Projects A custom copy of the Find Projects report that has additional data about the projects.

Find Journal Lines with
Worktag Details
Financial Accounting A copy of the delivered Find Journal Lines report with the worktags broken out into
their own columns for easier viewing and
reporting.

View Plan Lines Budget Report showing all budget lines entered with details about the plan, entry type,
status and all worktag detail.

Balance Sheet by Fund Financial Accounting Custom balance sheet report displaying ledger account balances by fund.

Income Statement by Fund Financial Accounting Custom income statement displaying revenue and spend amounts by fund for
the report period, current YTD, and prior
YTD.

Financial Budget vs Actuals
by Fund
Budget/Financial Accounting This report is designed to show the overall financial budgets by fund and is intended
to be used by the central Budget staff for
an overall picture to determine where they
need to pay attention or drill into the
details using other reports.

Statement of Work
40 Report Name Area Description
Budget vs Actuals by Cost
Center
Budget/Financial Accounting This report is designed to show the overall budget of a fund by cost centers and is
intended to be used primarily by the
central Budget staff to look at the top cost
center hierarchy and get an overall picture
to determine where they need to pay
attention or drill into the details using other
reports.

Budget vs Actuals for Cost
Center
Budget/Financial Accounting This report is designed to show the detailed budget vs actuals for one cost
center or a cost center hierarchy.

If the user is looking for the details for just
one cost center, he/she can choose to
repeat the columns by either Fund or
Program and can then use the other
parameters to limit the view further as
appropriate.

If the user would like to see the data for a
cost center hierarchy, he/she can choose
to repeat by Cost Center and can then use
the other parameters to limit the view to
particular funds, programs or other
worktags as appropriate.

Budget vs Actuals for
Program
Budget/Financial Accounting This report is designed to show the detailed budget vs actuals for one
program or a program hierarchy.

If the user is looking at the details for one
program, he/she can choose to repeat the
columns by either Fund or Cost Center
and can then use the other parameters to
limit the view further as appropriate.

If the user would like to see the data for a
program hierarchy, he/she can choose to
repeat by Program and can then use the
other parameters to limit the view to
particular funds or cost centers as
appropriate.

Budget vs Actuals by Project Projects/Budget/Financial
Accounting
This report is designed to show a life to
date overview of the budget and actuals
for all projects within a hierarchy and is
used primarily by users who are managing
multiple projects within a project hierarchy
or by the central Budget/Finance team to
get an overview of all projects. From
here, users can determine where they
need to pay attention or drill into the
details using other reports.

Budget vs Actuals for Project Projects/Budget/Financial Accounting
This report is designed to show the
detailed life to date budget vs actuals for
one project at a time.

Statement of Work
41 Report Name Area Description
Budget vs Actuals by Award Grants/Budget/Financial
Accounting
This report is designed to show a life to
date overview of award budgets and is
used primarily by the central Budget and
Finance staff to look at the top grant
hierarchy and get an overall picture of the
award budgets. From here, users can
determine where they need to pay
attention or drill into the details using other
reports.

Budget vs Actuals by Grant Grants/Budget/Financial
Accounting
This report is designed to show the
detailed life to date budget vs actuals for
one grant.

Find Assets Assets Custom copy of the delivered Find Assets report that adds in relevant fields and
reorders columns to be more practical.

Time Off Liability with
Worktags
Financial Accounting Custom version of the Time Off Liability report that includes worktag detail for cost
center, fund, etc.

Payroll Accounting Details Financial Accounting A report that returns payroll GL entries by worker with worktag details.

Project Remaining Budget
for Rollover
Budget Report for budget team to use when
evaluating project budgets at the end of a
fiscal year and determining the amount of
budget to be rolled to the next fiscal year.

Trial Balance with Worktags Financial Accounting Custom trial balance report used for exporting trial balance data to auditors or
other programs.

Cash Balance by Fund Financial Accounting A report detailing Client’s reportable cash balance by fund.

Payroll Deductions Financial Accounting A report detailing the payroll liability amounts withheld from each payroll.

Depreciation Expense by
Function
Assets/Financial Accounting Depreciation expense detailed by function for annual reporting purposes.

Statement of Net Position Financial Accounting Government-wide statement for annual financial report.

Statement of Activities Financial Accounting Government-wide statement for annual financial report.

Schedule of Expenditures of
Federal Awards
Grants/Financial Accounting Designed to report award expenditures for annual financials.

Statement of Work
42 Report Name Area Description
Up to three (3) formatted
fund financial statements for
annual report
Financial Accounting Fund financial statements for annual financial report.

Appendix C – Sample Change Order Form
Project Change Order
This Change Order form is used for requesting, documenting and approving changes to the Workday deployment or other applicable service offering, including, but not limited to, changes to the project’s Scope, changes for a major configuration element, timeline/schedule changes, integration specifications changes, addition of resources or any other Deliverable change from the originally planned Workday deployment or applicable service offering.

Summary
Client: XYZ Client
SOW/Project Name: Project ID # / Project Name as it exists in Workday Change Order #: C01 (adjust as appropriate)
Project Manager (Client): Project Manager Name, XYZ Client Project Sponsor (Client): Project Sponsor Name, Title
Engagement Manager
(CSLLC):

Engagement Manager Name, Collaborative Solutions, LLC
(“CSLLC”)
Acceptance Due Date: The date by which Client will need this approved in order to avoid negative Project Schedule impact.

Change Type: Type of change. For example: integration change, request for additional functionality, change in SOW estimate based on design sessions, etc. (usually more applicable to Phase One (1) or Phase Two (2) projects.)
Select one (1):

Term Extension (zero (0) budget add)
Term Extension (additional hours added)
Change in Scope (additional hours added)
Change in Scope (no addition hours added)
Other (detail in request description)
Impact Assessed by: List those assessing the impact. Normally the CSLLC EM, Functional or Integrations Consultant, and possibly someone on the Client side.

Priority: High, medium, or low based on need for the change.

Billing: Select one (1):

Bill under current project
Bill separately under current project
Bill separately under new project

Statement of Work
43 Contract Line Type: Describe the billing basis. For example: Time & Materials, Fixed Fee Installment/Milestone, Prepaid, Subscription. For “Bill under current project,” the billing basis of this Change Order MUST match the applicable SOW’s billing basis.

Is new PO# required? Select one (1):

New PO# (insert PO#)
PO# to be created after receiving countersigned documents No new PO# needed
Request Description
<<Describe the change and why it is needed. It is important to describe why this was not estimated correctly in the SOW or where the change occurred. For example:

Adding a new integration for Aetna, COBRA, Qualifying Event. Original integration listed on the SOW addressed only Aetna PPO/HMO, did not specify COBRA. Additional forty (40) hours added to cover COBRA QE.>>
If this CO is for an extension, please include the number of hours and budget remaining on current project.

Business Purpose / Reason for Change
<<Describe the purpose/reason for change and be sure to explain the impact to NOT doing the change. For example:

Client offers COBRA coverage for any employees eligible for a COBRA Qualifying Event; this was not included in the original SOW estimate. If Client does not approve this change Client will not be able to provide COBRA coverage.>>
Impact Assessment
Project
Activities
Affected:

Describe the additional work that needs to be done. For example: Create one (1) additional integration or three (3) new performance templates need to be configured, etc.

Deliverables
Affected:

Describe Deliverables affected. For example:

One (1) additional interface file to be delivered to Aetna will be produced.

Project
Schedule
Impact:

Describe schedule impact, if any. For example:

Architect & Configure stage will be extended by one (1) week to complete all integrations.

Include the original end date and new end date, if extending the term of the SOW.

Pricing
Modifications
Modifications to the Pricing are as follows:

Role Rate Hours Cost
Executive
Strategy Manager
Senior Functional Architect (Consulting
Director)
Engagement Director (Portfolio Director)

Statement of Work
44 Engagement Manager
Functional Architect
Senior Principal Consultant
Principal Consultant
Consultant
Analyst
Total <<total>>

Payment Terms – If Client is adding hours
• Time & Materials SOW: This Change Order will be billed monthly on a Time and Materials (“T&M”) Basis based on actual usage at the rates set forth in the SOW and as identified in the Pricing Modifications above.
• Prepay SOW: This Change Order will be invoiced upon execution by both Parties at the rates set forth in the SOW and as identified in the Pricing Modifications above.

Assumptions
• Describe any new Assumptions different from the SOW. For Example:
• Client will provide the requirements for the new integration. • If not different from the SOW, add “All Assumptions from the SOW dated XX December XXXX apply to this Change Order”, otherwise, if there are new Assumptions different from the SOW, list them here.

Authorization

Client Authorization Signature

Collaborative Solutions, LLC Authorization
Signature

Name

Name
Job Title

Job Title
Date

Date

Statement of Work
45 Appendix D – Detailed Functionality
As the project progresses, there will be a review of the overall Scope after alignment sessions. If the intended Scope is outside of this SOW, a Change Order will be required which may affect overall cost (level of effort) and the Timeline.

Workday foundational elements such as dashboards, reporting, analytics, business process framework, and employee self-service are built into every Workday module.

During Client deployment, the following elements will be in Scope:

• Business Processes: Up to one (1) rule-based business processes per process with no more than twenty (20) steps per business process. Unused steps within a process will not apply to alternate business processes. Includes up to two (2) consolidated templates for applicable processes. Additional business process Scope is limited to what is defined in this Appendix D.
• Notifications: Up to five (5) notifications per business process. Unused notifications within a process will not apply to alternate business processes. • Security: Workday delivered security groups will be used. Inactivated or unused security groups and implementers will remain on domain security policy definitions to allow for ease of implementing other functionality in the future. Inactivated or unused security groups and implementers will be removed from the business process security policy definitions to match design requirements identified.
• Custom Objects: Up to two (2) custom object per functional area in Scope with no more than five (5) custom field(s) per object. If custom lists are required, up to ten (10) items per list. Unused custom object(s) may not be applied to other areas. • Guided Tours: Guided Tours are out-of-Scope unless OC&T is in Scope and guided tours are explicitly identified in the OC&T Scope.
• Tenant Branding: Workday delivered tenant branding is in Scope. Any changes to images uploaded will be completed by Client through KT.
• Dashboards: Workday delivered dashboards for the functional Scope below will be configured with Workday delivered reports unless custom reports are included in Scope in Appendix B.
• Translations: Translations conversion is in Scope. Client is responsible for providing translated values.
• Scheduled Reports & Alerts: Scheduled reports, task alerts, and business process alerts are not in Scope. General report-based alerts are defined within the Scope in Appendix B. • Setup Values: Current values, including organizations. No historical loads unless needed to support the data conversion Scope described in Appendix E. • Documents: Documents are assumed to be attachments only. Generated documents and/or documents enabled for Adobe e-sign or DocuSign are assumed out-of-Scope.

Templates do not include logos or any specialized formatting unless identified as a BIRT layout in the reporting Scope.
• Request Framework: Request framework is assumed out-of-Scope unless identified below.

Statement of Work
46 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
HCM: Core

Organization hierarchy structure
per organization type
(supervisory, company, cost
center, custom, and location
hierarchy) (not including
Organization Studio)
Y Up to two (2)
Physical location(s) where
workers perform job functions
(not including Workspaces)
Y
Matrix Organization Tracking N
Job Catalog with position-related
attributes such as management
hierarchy (not including skills and
experience)
Y
Staffing Model used to manage
headcount
Y One (1)
Worker Profile for detailed worker
information tracking (not
including Purging)
Y
Worker Document(s) Y Up to fifteen (15) (up to five (5) document security segments
with associated segment-based
security groups)
Regulatory Reporting: Workday
delivered Compliance Reports
Y
Employee Contract(s) N
Probation Period Tracking Y Up to four (4) probation period defaulting rule(s)
Notice Period Tracking N
Contingent Worker Tracking Y
Retiree Functionality Y
Union(s) Y Up to eight (8)
Collective Bargaining
agreement(s)
Y Up to eight (8)
Additional (Multiple) Jobs Y
Position Budgeting N
Onboarding Y
• Onboarding Setup
Template(s)
Up to three (3) twelve (12)

Statement of Work
47 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
• Additional Worker
Documents
Up to twenty (20)
• Bulletin Worklets Up to three (3)
Form I-9 Tracking Y
Basic HCM Asset Tracking N
Reference Letter Template(s) N
Safety Incident Tracking N
Committees Tracking (not
including meeting agendas,
voting and external committee
membership tracking)
N
Job Requisitions (not including
Confidential or Evergreen)
N
Workday Assistant N
Workday Today N
Custom Security Groups Y Up to three (3) (up to one (1) intersection security group)
Custom Questionnaire(s) N
Modifiable Business Processes Y 1. Hire Employees

2. Contract Contingent Worker

3. Onboarding

4. Onboarding Setup

5. Change Job

6. End Contingent Worker
Contract

7. Create Position

8. Terminate Employee

9. Request Compensation
Change

10. Up to three (3) additional
configurable business
processes
Compensation: Core Compensation packages Y Up to one (1) Compensation grades tied to job
profiles
Y Up to four hundred and fifty (450)
Compensation Grades and
Grade Profiles Combined

Compensation grade steps Y Up to ten (10) (up to five (5) progression rule(s) total

Statement of Work
48 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Compensation Plans (not
including Calculated Plans,
Reimbursable Allowance Plan
functionality, Deferred
Compensation or Compensation:

Processing functionality unless
otherwise called out in Scope)
Y Up to fifteen (15) compensation
plans total
Severance Packages N
Custom Total Rewards
Template(s)
N
Wage Theft Prevention
Template(s) [New York,
California, Washington DC,
Minnesota Only]
N
Compensation Survey
Management Survey(s)
N
Custom Security Groups Y Up to one (1) (up to one (1)
intersection security group)
Benefits Benefit plans Y Up to forty-eight (48) (up to one (1) benefit rate type each)
Benefit credit(s) and/or
surcharge(s)
N
Benefit group(s) Y Up to eight (8)
Benefit Job(s) [hours must be
accounted for, and multiple jobs
are in Scope]
Y
Dependents and beneficiaries
tracking
Y
Benefit Enrollment Event(s)
(including Passive Events)
Y Up to sixteen (16) Benefit Events
(Plus Conversion Events)
Open Enrollment enablement for
2026 cycle, referencing existing
or in Scope plans
Y
Enrollment Event Rule(s) Y Up to one (1)
Evidence of Insurability (EOI)
management (not including
automation from third-party
vendor)
Y
Workday delivered COBRA
Eligibility Processing to third-
party administrator [United States
of America only]
Y

Statement of Work
49 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Affordable Care Act (ACA)
Measurement Period Tracking
Y
1094/1095-C Reporting Y
Medicare Tracking Y
Dependent verification
functionality through use of
custom IDs
N
Custom Security Groups Y Up to one (1) (up to one (1)
intersection security group)
Modifiable Business Processes Y 1. Change Benefits for Life Events Review Process

2. Dependent Event

3. Change Benefits

4. Passive Even

5. Up to one (1) additional
configurable business
processes
Talent & Performance
Management

Worker Profile and Skills
(not
including qualification equivalence rules)
Y
Workday Skills Cloud Y
Talent Marketplace N
Competencies:
• Proficiency scales
• Rating scale(s) for
competencies
Y
Y
Y

Up to ten (10)
One (1)
One (1)
Career Development Tracking Y
Mentoring Relationships Tracking N
Check-Ins N

Talent review template(s) Y Up to two (2)
Nine-Box (9-Box) Talent
Calibration Program(s)
N
Succession Planning for
Positions & Pools
N
Potential, readiness, retention,
and loss impact tracking
N
Custom talent card layout(s) N
Feedback Enablement
Template(s)
N

Statement of Work
50 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Organization and personal goals
management
Y Up to two (2) rating scale & one
(1) completion scale
Performance Review
Template(s)
Y Up to five (5) (up to one (1)
rating scale)
Performance Review Calibration
(Ratings Normalization)
Program(s)
N
Development Plan Template(s) N
Performance Improvement Plan
Template(s)
Y Up to one (1)
Disciplinary Action Template(s) Y Up to three (3)
Custom Security Groups Y Up to one (1) (up to one (1)
intersection security group)
Modifiable Business Processes Y 1. Manage Education

2. Start Performance
Review

3. Complete Manager
Evaluation for
Performance Review

4. Give Feedback

5. Manage Goals

6. Mange Job History

7. Complete Self
Evaluation for
Performance Review

8. Import Professional
Profile

9. Set Review Content for
Performance Review

10. Mange Competencies

11. Manage Succession
Plan

12. Up to two (2) additional
configurable business
processes
Learning Management Extended Enterprise Enablement N
Standalone Lesson Enablement Y
Course Enablement Y Up to four (4) total equivalency
rules, up to two (2) total
expiration rules, up to two (2)
content highlight rules
Course/Program Costing/Pricing N

Statement of Work
51 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Media Interaction(s) Y Up to two (2)
Course Offering Enablement Y
Programs Enablement Y
Campaigns Enablement Y Up to two (2) audiences with up
to four (4) condition rules each
Workday Content Cloud
Configuration
N
Learning Security Segment(s)
with associated segment-based
security group(s)
Y Up to five (5)
Custom Security Groups Y Up to one (1) (up to one (1)
intersection security group)
Modifiable Business Processes Y 1. Enroll In Content

2. Drop Learning Enrollment

3. Manage Course

4. Up to one (1) additional
configurable business
processes

Absence Management

Absence Countries

Up to one (1)
Accruals Y Up to six (6)
Time Off's Y Up to eighteen (18)
Purchase or Sale of Time off
(PTO, Annual Leave, Vacation?)

Y
Holiday Calendars

Y Up to two (2)

Leave Types with an entitlement

Y Up to five (5)
Leave of Absence Validations Y Up to five (5)
Leave Types without an
entitlement
Y Up to ten (10)
Self-Administration of leave of
absence
N
Work schedule calendars with
eligibility rules
Y Up to one (1)

Statement of Work
52 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Work schedule calendars without
eligibility rules
Y Up to ten (10)
Leave segment security groups Y Up to three (3)
Modifiable business processes Y Request Time Off
Correct Time Off
Request Leave of Absence
Request Return from Leave of
Absence
e. Up to four (4) total process
steps
f. Up to four (4) notifications
Absence Calendar
No steps or notifications
Time Tracking

Time Tracking Countries Y Up to one (1)
Time entry codes Y Up to ten (10)
Time calculations Y Up to ten (10)
Time entry validations Y Up to five (5)
Time tracking templates Y Up to six (6)
Configurable alerts, including
reports required to build
necessary alerts
Y Up to three (3)
Time Tracking aligned Period
schedules
Y Up to two (2)
Custom Security Groups Y Up to two (2) Intersection
security groups to support
employee and manager self-
service
Modifiable business processes Y Enter Time

1. Up to four (4) total process
steps

2. Up to four (4) notifications
Reported Time Batch Event

1. Up to one (1) total process
step
Up to two (2) notifications
Payroll Pay Groups Y Up to five (5)
Earning Codes Y Up to seventy-five (75) Pay
Components
Deduction codes Y Up to fifty (50) Pay Components

Statement of Work
53 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Federal Identification Numbers
(FEIN)
Y Up to two (2)
States/Provinces Y Up to one (1)
Local tax authorities Y Will configure all necessary
locals to comply with state
requirements
Pay frequencies Y Up to two (2)
Payroll period schedules Y Up to two (2)
Configure payroll calculation
rules
Y
Configure Workday on-cycle and
on-demand paycheck template
Y Up to one (1) each
Configure payment elections Y Up to one (1) Payment Election Rule
Garnishments Y
Bank depository and source bank
accounts
Y Up to two (2)
Configure pay slips Y Up to one (1)
Establish payroll accounting to
generate and review payroll
accounting data
Y
Establish comparison rules and
audit components
Y
Settlement rules Y
Third-Party Payroll provider
provides tax, garnishment,
check, and deposit advices
Y
Configure retroactive payroll
processing
Y
Configure Fair Labor Standards
Act (FLSA) calculations – using
delivered Workday functionality
Y
Standard 40 hr./week FLSA
processing in scope

Custom Security Groups Y Up to one (1), (up to one (1)
intersection security group)
Modifiable Business Processes Y Up to five (5) configurable business processes

Statement of Work
54 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Custom Payroll Calculations
(Value Compare, Instance Set,
Conditional, etc.) as needed to
support CSLLC best practice
configuration
Y Up to ten (10)
Payroll Standard Dashboards:
• Year End
• Payroll Compliance
• Command Center
Y
Worker Costing Allocations Y Single Dimension
Core Financial
Management,
Accounting and
Finance
One Currency (USD) Y
• Companies (legal
entities)

• Cost centers

• Custom organizations
Y

Y
Up to five (5) companies
organized in up to three (3)
company hierarchies
Cost centers organized in up to
two (2) independent hierarchy
structures with up to four (4)
hierarchy levels each

Up to one (1) custom org if
needed with a hierarchy
structure
Locations Y Up to two hundred (200)
Business Asset and Ship-To
Locations and up to three
hundred (300) Inventory
Locations organized in a
hierarchy structure with up to
four (4) levels of hierarchy
Custom Security Groups Y Up to two (2)
Financial Accounting FDM design and utilizing
Workday worktags for analytics
Y
Account sets (parent-child
relationship)
Y One parent-child account set
configuration
Ledger account summaries Y One ledger account summary
structure with up to five (5) levels
Configure standard/delivered
account posting rules
• Including spend and
revenue categories and
account posting rules for
operational transactions
Y

One (1) Posting Rule Set

Statement of Work
55 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Categories Y Revenue Categories with one
hierarchy structure containing up
to four (4) levels
Spend Categories with one
hierarchy structure containing up
to four (4) levels
Custom worktags Y Up to one (1)
Custom reports to support
financial reporting for Generally
Accepted Accounting Principles
(GAAP and GASB) and
regulatory reporting
requirements, Workday financial
statements for external reporting,
and internal management reports
Y See Table
Allocations Y Up to ten (10)
Fiscal schedule (Fiscal Year) Y
Fiscal summary schedule(s) Y
Custom validation(s) Y Up to one hundred (100) custom
validations
Banking and
Settlement
Financial Institutions Y Up to seven (7) Financial
Institutions
Configure check printing
modifications and electronic bank
integrations (type of electronic
payments, wire payments and
positive pay, unique by company)
Y Two (2) Check printing layouts
for Payroll and Accounts Payable
from a single Financial Institution
Cash Position Y
Bank reconciliation automation
and integrations
Y All operational bank accounts at
one (1) financial institution
Supplier settlement via check or
electronic payments
Y Electronic payment automation
and integrations configured for
one (1) Financial Institution
Budgets Structures (Financial, Award,
Project)
Y Parent-child structure set up for
the financial plan
Position Budget Structure N
Ledgers for encumbrances Y
Budget checking for operational,
Grants, and project budgets
Y
Payroll Commitment Accounting N

Statement of Work
56 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Supplier Accounts Suppliers including payment
terms, attributes for payments
and 1099 reporting
Y
Active header level purchasing
contracts
Y
Supplier categories and groups Y
Check or electronic payments for
supplier settlement(s)
Y
Tax books, excluding actuals N
Custom Security Groups N
Business Assets Depreciation Profiles Y
Asset Books Y
Procurement Punchouts N
Purchase order layout Y Workday Delivered Purchase
Order Layout
Receiving and matching Y
Supplier Portal functionality Y
Request for Quotation (RFQ)
processes
Y
Expenses Worker expense preferences
(e.g., Employee travel card –
American Express)
Y
Expense policy security groups Y Up to five (5) Expense Policy Security Groups
Expense items Y Configuration of up to one
hundred (100) Expense Items
Expense item groups Y
Business purposes Y
Expense Payment Election rules Y
Custom Security Groups N
Customer Accounts Customer attributes for billing
and collection through aging
reports and collection disputes
Y
Custom Invoice layout(s) N Workday Delivered Customer
Invoice Layout
Custom Statement layout(s) N Workday Delivered Customer Statement Layout
Custom Security Groups N

Statement of Work
57 Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
Project and Work
Management
Projects of medium complexity
including:
• Project phases
• Project tasks
• Project worker roles/talent
pools
• Project groups
• Basic projects
Y
Y
Y
Y
Y
Y

Delivered Workday Capital
project functionality
Y
Delivered Workday billable
project functionality
N
Project hierarchies Y One primary and one optional
project hierarchy structure with
up to four (4) levels in each.

Project templates (project,
project plan, or a combination
thereof)
Y
Custom Security Groups N
Grants Management Grants: hierarchies, security,
business processes, and Award
Cost Processing (ACP)
Y Up to five hundred (500) Active
Grants organized into one
hierarchy structure with up to
four (4) levels.

Awards Y
Sponsors Y
Award Proposals Y
Custom Security Groups N
Mobile Solutions Configure mobile-specific tenant
settings
Y
Security to allow mobile access Y
Access for iPhone, iPad, and
Android
Y
Employee Self-Service Employee Self-Service for all
Workday functionality specified
above
Y
Manager Self-Service Manager Self-Service for all
Workday functionality specified
above
Y

Statement of Work
58 Adaptive Planning
Function Functionality Scope In Scope
(Y/N)
Quantity to Configure
General: Ability to create annual plan Y
Ability to reforecast monthly
One (1) Chart of Accounts
structure across organization
One (1) Fiscal calendar
across organization
One (1) Currency for planning
Planning Models: Revenue Planning:
• Driver-based revenue
model to support multiple
revenue streams
• Up to five (5) supporting
schedules to build bottom-
up revenue plan which will
allow for direct data entry
at revenue account and
funding source
• Total calculations not to
exceed twenty (20)
Y
Cost of Labor:
• Up to five (5) Employee
Types planned down to
the individual
employee/position
• Salary and hourly
assumptions, as well as
merit increases
• Merit increases to be
evaluated against
maximum pay scale for
the grade
• Allocations based on the
funds and organization
(company and/or
department)
• Fringe Benefits and Tax
Rates
• Calculate total cost
burden by
employee/position
• Total calculations not to
exceed twenty (20)
Y

Statement of Work
59 Adaptive Planning
Expense Planning:
• Up to (1) one expense
model to capture non-
personnel related
expenses
• Up to five (5) supporting
schedules to build bottom-
up expense plan
• Total calculations not to
exceed twenty (20)
Y
Capital Planning:
• Capital sheet will allow to
plan for long term capital
improvement projects by
funding source.

Santa Maria City CouncilMarch 19, 2024

Santa Maria City Council
March 19, 2024