If authorized, the City intends to request $240,000 for operating expenses. If awarded, the EMSD grant funds will allow the City to offer services to individual residents with disabilities regardless of age.
Should the City be successful in its application, funds are expected to be awarded in July of 2027.
ENVIRONMENTAL IMPACT:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
LEGAL ANALYSIS:
This item has been reviewed as to form.
FINANCIAL IMPACT:
The EMSD Grant Program requires a 20% local match for operation assistance expenses. The 20% match will total $48,000 over three years. If awarded these funds would be available for the beginning of Fiscal Year 2027-28 and will be included in future budgets. Current grant funds from the 2024 allocation will carry through the current Fiscal Year of 2026-27, and end in June 2027.
The local matching requirement for the three-year period of Fiscal Years 2027-28, 2028-29 and 2029-30 will be requested through the annual budget process and is contingent upon City Council appropriation. It is anticipated that staff will seek appropriation of matching funds in the budget line item for senior transportation in the Council approved budget for Fiscal Year 2027-28, and the two subsequent fiscal years.
RECOMMENDATION:
That the City Council:
1. Conduct a public hearing to receive input and consider the submittal of a grant application; and,
2. Determine this action is exempt from the California Environmental Quality Act; and,
3. Adopt Resolution 7818 authorizing the application for grant funding from the Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Program.
SUBMITTED, NOTED AND APPROVED BY:
Patrick Gallegos
Patrick Gallegos, City Manager
Prepared by: Nathan Caukin, Recreation Specialist
ATTACHMENTS:
A. Resolution 7818
B. OCTA EMSD 2026 Grant Application Packet
RESOLUTION 7818
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL APPROVING
THE APPLICATION FOR AND RECEIPT OF GRANT FUNDS FOR THE
2026 ENHANCED MOBILITY FOR SENIORS AND INDIVIDUALS
WITH DISABILITIES (EMSD) GRANT PROGRAM
WHEREAS, the Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Grant Program Call for Projects (Call) intends to support the needs of seniors beyond traditional public transportation, and for individuals with disabilities beyond that required by the Americans with Disabilities Act (ADA); and, WHEREAS, the EMSD Grant Program offers grant opportunities to non-profit organizations (non-profits) and local public agencies to help meet these needs; and, WHEREAS, the 2026 EMSD Call will make up to $5.85 million in local funds available for eligible and high scoring projects, and funding availability is based on the Federal Transit Administration (FTA) Section 5310 Program apportionment to OCTA and is subject to change; and,
WHEREAS, all projects proposed and considered for funding are required to be included in the 2024 Humas Services Transportation Coordination Plan (Coordinated Plan). Under FTA guidelines, the Coordinated Plan is required to be updated every four years; and, WHEREAS, the City of Seal Beach, (City) does not have non-profit agencies that are readily available to provide the proposed service; and, WHEREAS, the City desires to pursue enhancement to the current Senior Transportation Services Program; and,
WHEREAS, the City commits to and agrees to fully support intentions to meet the transportation needs of older adults and people with disabilities when services are unavailable, insufficient, or inappropriate.
NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine and order as follows:
Section 1. City of Seal Beach staff is directed to submit the grant application package to the Orange County Transit Authority to provide documentation for award in the amount of $240,000 over a 36-month period, to allocate to expansion of transportation services for seniors and individuals with disabilities.
Section 2. The City Manager of the City of Seal Beach, or designee, is directed to execute, in the name of the City of Seal Beach, all necessary applications, contracts and agreements and amendments thereto to implement and carry out the grant application package attached hereto and any project approved through approval of the grant application.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of September 2026 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Lisa Landau, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7818 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of September 2026.
Gloria D. Harper, City Clerk
2026 EMSD Grant Program Project Nomination
0 Complete Application Checklist
Application Checklist
☒ General Information
☒ Part I – Applicant Profile
☒ Part II – Funding Request
☒ Part III – Scored Questions
☒ Part IV – CertificationsError! Reference source not found.
Attachments – Optional or Required as Applicable (All Attachment files should be clearly named/titled prior to upload.) ☒ Attachment 1: Agency Overview Supporting Documentation and Service Area Map – Optional ☒ Attachment 2: Audited Financial Statement and Title VI and ADA Compliance ☐ Attachment 3: Local Match Source Documentation
☐ Attachment 4: CAPITAL – Capital Project Detail and Cost-Effectiveness Documentation ☒ Attachment 5: OPERATING – Operating Assistance Documentation Detail ☐ Attachment 6: Operational Policies (Driver Training / Maintenance / Inspections) – Optional ☒ Attachment 7: Letters of Support
☐ Attachment 8: Existing Transportation-Related Service(s) – Vehicles ☐ Attachment 9: Existing Transportation-Related Service(s) – Equipment ☐ Attachment 10: Emergency Planning and Preparedness Supporting Documentation – Optional ☐ Attachment 11: Private Non-profit Agency – Corporation Status Inquiry Documentation ☒ Attachment 12: Public Agency Eligibility Documentation ☒ Attachment 13: A. Transportation Needs - Population Density, Seniors, Disabled. B. Transportation Needs – Barriers. 2026 EMSD Grant Program Project Nomination
1 General Information
Agency (Applicant) Legal Name: City of Seal Beach
Project Title: 2026 Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Grant Program
Physical Address (No P.O. Box): 211 8th Street
City/State/Zip: Seal Beach / California / 90740
Contact Name: Nathan Caukin
Contact Title: Recreation Specialist
Email of Contact: [email protected] Phone: 562-431-2527 x1390 Alternate Contact (Name, Title): Anthony Nguyen, Community Services Coordinator Alternate Email of Contact: [email protected] Phone: 562-431-2527 x1344 Application Type:
Indicate Capital or Operating
Operating (Operating Assistance)
Describe the scope of work and type of
request (e.g., vehicle replacement,
equipment, service expansion, mobility
management, travel training, first/last mile
connection).
Service Expansions: Expand our current Senior Mobility Program (SMP) which includes our shuttle and our Dial-A-Ride program. Service expansions would provide an opportunity to continue to enhance our services to our senior population while expanding to include individuals with disabilities, to provide transit services where public transportation services may not appropriately meet their needs.
Provide a detailed project description,
including requested items and quantities,
service area, target population, service
period (if applicable), and expected
benefits.
Service continuation of our current contracted Senior Mobility Program for transportation services, to continue to provide safe, reliable, and timely transportation for the seniors with expansion to include individuals with disabilities.
This expansion would allow continuation of the current level of services afforded utilizing grant dollars from this 2026 EMSD Grant Award.
Total EMSD Request $ 240,000
Total Local Match $ 48,000
Total Project Cost (EMSD + Local Match) $ 288,000
Application Priority (if submitting more
than one application):
Priority 1 of 1
2026 OC EMSD Program Project Nomination
3 Part I – Applicant Profile
Agency Overview
Describe your agency’s purpose, transportation services, and days/hours of operation. Attachment 1 included? ☒ Yes ☐ No The City of Seal Beach, Senior Transportation Program, includes two types of transportation options with our Shuttle Service and our Dial-A-Ride Service. Our shuttle can accommodate 20 passengers, is free to eligible users and runs on a fixed route throughout major City stops, including: the Seal Beach Pier, Leisure World, the Rossmoor Shopping Center, & the North Seal Beach Community Center. This shuttle will be expanding to a larger ADA compliant 25 passenger shuttle with capacity to accommodate wheelchairs, scooters, and has a bike rack that can hold two (2) bikes. The shuttle includes 10 unique stops across 4 main destinations within the city. It is operational Monday-Friday, 9:00am-4:00pm. Our Dial-A-Ride service is a free curb-to-curb cab service for riders to travel to any location within Seal Beach, and up to 3 miles outside of the City of Seal Beach (within Orange County) for non-emergency medical needs. It is operational Monday-Friday, 7:30am-5:00pm. Both programs are available to eligible applicants who are: Seal Beach residents and 60+ years old (expanded to include individuals with disabilities with the 2024 EMSD Grant award).
Service Area
Describe the service area. A map may be attached. Attachment 1 included? ☒ Yes ☐ No The shuttle travels on a fixed route throughout Seal Beach to major attractions throughout the City, allowing eligible users to reach areas that otherwise would not be possible. The Dial-A-Ride program taxis riders to any destination requested within the City of Seal Beach, and up to three (3) miles outside City limits (within Orange County) for non-emergency medical purposes. The Dial-A-Ride service includes transit options to the Long Beach Veteran’s Affairs Hospital and the UCI Health System of Los Alamitos. Both hospital systems are major assets to our senior population and our veterans.
Client Profile
Provide total clients currently served by your transportation program, including:
Seniors: 2,391
Individuals with Disabilities: 212
Wheelchair/Lift Users: 189
Total Unduplicated Clients: 2,392
Financial and Title VI and ADA Compliance Documentation Summarize your agency’s audited financial condition and confirm Title VI and Americans with Disabilities Act (ADA) compliance. If there were any related lawsuits, complaints, or investigations in the past year, briefly describe them. If none, state none.
Attachment 2 included? ☒ Yes ☐ No
2026 OC EMSD Program Project Nomination
4 Financial:
Link provided – City of Seal Beach Annual Comprehensive Financial Report For Fiscal Year 2024-2025, Ended June 30, 2025. https://www.sealbeachca.gov/LinkClick.aspx?fileticket=DIcxhh3e9yE%3d&portalid=0 Title IV and ADA Compliance – Compliant
Regarding any related lawsuits, complaints, or investigations in the past year. None, there have not been any lawsuits or complaints reported to the City of Seal Beach within the last year alleging Title VI discrimination based on race, color, or national origin, and/or any lawsuits or complaints specific to the Americans with Disability Act.
Project Need
Select the condition that best describes the project need. Choose one.
Check the appropriate box below as applicable. One box must be checked. ☒ Existing transportation or paratransit service is not enough to meet current need, or replacement equipment is needed to maintain service.
☐ Existing transportation or paratransit service does not meet the needs of the target population.
Transportation Needs Assessment
Describe transportation gaps for seniors and individuals with disabilities in the service area, including why existing public, paratransit, or private services do not fully meet those needs. Reference relevant needs identified in the 2024 Human Services Transportation Coordinated Plan (Coordinated Plan) where applicable The existing public transit or paratransit services have routes that do not include regions for some residents of Seal Beach. Our transportation services provide service in these “gap” regions. In addition, some additional concerns when respondents were asked, “When you miss or are unable to make a trip, what are the most frequent reasons?” (Section 3, Figure 20, p.49 in OCTA Human Services Transportation Coordination Plan), were not owning a car, not having anyone to provide a ride, and the cost being too high. Our services are all “free of cost”, we have planned fixed routes for routine and scheduling, and curb to curb cab services. The City currently provides free of cost transportation services to seniors of Seal Beach through our Senior Mobility Program (SMP) in collaboration with Orange County Transit Authority. Without the EMSD Grant Program, the transportation services are only provided to seniors based on program eligibility in conjunction with the SMP Program. With the EMSD Grant Program, the city will be able to expand our transportation services to our residents with disabilities. The proposed project will provide safe, reliable, and timely transportation for the seniors and individuals with disabilities of the City of Seal Beach. The City of Seal Beach services a large senior population with roughly 44% of the population being 65 years and older (current United States Census estimates). Leisure World in Seal Beach has one of the highest densities of the county’s older adult population and those with disabilities (Coordinated Plan, Section 3, Figure 6, p.31). According to the Coordinated Plan, there has been a steady increase of people with disabilities and seniors in Orange County (from 2018 to 2022) (Section 3, Figure 2, p.27; Section 3, Figure 6, p.31). Leisure World has one of the highest population densities in Orange County for seniors over 65 years old, individuals with disabilities, and veterans (Section 3, Figure 3, p.28, Section 3, Figure 7, p.32, Section 3, Figure 9, p.34). As an incorporated city in Orange County, the City of Seal Beach would serve this percentage residing in Seal Beach. City staff has personal experience in communicating with prospective registrants in our program that have been denied access to our program because they are under the age of 60 years old. In these cases, these adults were either retired but under sixty (60) years of age, an individual with a disability, or both. 2026 OC EMSD Program Project Nomination
5 Current Transportation/Service Funding Participation
Is the agency receiving other transportation funding for services related to this request? Yes If yes, fill out table.
Funding Program
Funding Type
(Capital /
Operating)
Annual Award
Amount Service Period Is this project related? (Y/N)
2024 EMSD Grant Operating $50,000 (max
reimbursement)
07/2025 – 06/2026 Yes
Measure M2 – Senior Mobility Program
(Project U) Operating $68,060.48 07/2025 – 06/2026 Yes
Measure M2 – Community Circulator
(Project V) Choose an item. Click or tap here to enter text.
Click or tap here to
enter text.
Choose an item.
Other (Specify) Operating $75,577.19 07/2025 – 06/2026 Yes City General Fund
2026 OC EMSD Program Project Nomination
6 Part II – Funding Request
1. Funding Category
Select one funding category. Capital and Operating may not be combined in one application. Note: Applicants requesting both categories must submit separate applications. Total EMSD request per agency may not exceed $750,000.
CAPITAL OPERATING
☐ Vehicles ☒ Operating Assistance
☐ Equipment ☐ Mobility Management
2. Total Project Expenses
Complete one expense table for this application: Enter the total gross cost of the proposed project. Complete only the table for the selected funding category.
a. For Capital Projects (Vehicles and/or Equipment Only) Complete section only if applying for Capital. Staff Costs/Contingency may not exceed 10% each of Total Capital Expenses.
Expense Category Amount
Vehicles Choose an item. $ Click or tap here to enter text.
Equipment Choose an item. $ Click or tap here to enter text.
Staff Costs (≤10%) (Optional) $ Click or tap here to enter text.
Contingency (≤10%) $ Click or tap here to enter text.
Total EMSD Project Expenses $ Click or tap here to enter text. b. For Operating Assistance and/or Mobility Management Projects Complete section only if applying for Operating. Indirect Costs/Contingency may not exceed 10% each of Total Operating Expenses.
Expense Category Amount
Operating Assistance Expansion of Services $ 240,000
Mobility Management Choose an item. $ Click or tap here to enter text.
Indirect Costs (≤10%) (Optional) $ Click or tap here to enter text.
Contingency (≤10%) $ Click or tap here to enter text.
Total EMSD Project Expenses $ 240,000
3. Project Funding Request
Enter all funding sources for this project. Total EMSD Project Expenses must match Section 2 Total EMSD Project Expenses. Local Match must meet the minimum requirement and be based off of Total EMSD Project Expenses.
Funding Source Amount
EMSD Funding Source $ 240,000
Local Match Operating Assistance - 20% $ 48,000
Other Non-EMSD Funding $ Click or tap here to enter text.
Total EMSD Project Expenses $ 288,000
4. Request Year
Indicate the Fiscal Year (FY 2026/27, 2027/28, or 2028/29):
EMSD Requested FY: FY2027/28
2026 OC EMSD Program Project Nomination
7 5. Local Match Source
Documentation supporting local match commitments must be attached and must include commitment letters or other documentation verifying the availability of match funds. Add to table as needed. Attachment 3 included? ☐ Yes ☒ No Component: Operating - Operating Assistance
Local Match Amount: $ 48,000
Source(s): One Source
Source 1: City General Fund Status: Secured
Source 2: Click or tap here to enter text. Status: Choose an item. … … Status: Choose an item.
6. Supplemental Detail
Provide additional details supporting the selected funding category. Only complete subsection 6a or 6b based on the funding category selected in Section 1. All required attachments must be included for the application to be considered complete. a. For Capital Projects (Vehicles and/or Equipment Only) Vehicle(s) Request Detail
Attach vehicle request detail information including, but not limited to:
1. Vehicle Type(s) (Year / Make / Model) 7. Purchase or Leased**
2. Quantity 8. Zero-Emission*** (Optional) – Yes/No
3. Unit Cost 9. Useful Life
4. Total Cost 10. Estimated Annual Passenger Trips and Miles
5. New / Expansion / Replacement 11. Cost-Effectiveness Documentation
6. New or Used*
*Used Vehicle Requirements:
1. Less than 3 years old 4. Mechanically inspected
2. Less than 65,000 miles 5. ADA compliant (or modified to be compliant)
3. Under warranty 6. Documentation of price comparison from multiple vendors **Leased Vehicle Requirements:
1. Documentation of price comparison from multiple vendors 2. ADA compliant (or modified to be compliant) ***Zero-Emission Vehicle Requirements (if applicable):
• Documentation demonstrating access to appropriate fueling or charging infrastructure. .
Equipment Request Detail
Attach Equipment request detail information including, but not limited to:
1. Equipment Type(s) 4. Unit Cost 7. New / Expansion / Replacement
2. Components / Description(s) 5. Total Cost 8. Cost-Effectiveness Documentation
3. Quantity 6. Useful Life
Attach Capital Acquisition Detail and Cost Effectiveness Documentation. Attachment 4 included? ☐ Yes ☒ No b. For Operating Assistance and/or Mobility Management Projects • If Operating Assistance is selected, the request must support continuation or expansion of an existing service already in operation. New stand-alone operating services are not eligible. • If Mobility Management is selected, the request may support a new project, expansion, or continuation.
Scope of Project Operating Assistance - Expansion
Detailed Scope Requesting funds to continue current service levels and operations for the Senior Transportation Program, enhanced through 2024 EMSD Grant awards, expanding access individuals with disabilities serviced by our Senior Mobility Program. Current senior transportation services provided under SMP are available to individuals sixty (60) years of age and older. Trips are provided within Orange County, include trips to/from senior centers, city beaches and parks, medical appointments, shopping locations, personal care, and social/ recreational activities.
Include Service Period – FY 2027/2028
2026 OC EMSD Program Project Nomination
8 Funded Activities and Associated Costs
List each major activity funded under this request with associated cost. Activities should reflect the proposed service/program. • For Operating Assistance, include activities tied to the continuation or expansion of an existing service (e.g., staffing, fuel, contracted service).
• For Mobility Management, include activities such as coordination, travel training, outreach, or call center support. • Ensure the subtotal matches Section 2.b. Total Operating Project Expenses. Add to table as needed.
Activity Description of Activity Associated Costs
Senior Shuttle Fixed Route Shuttle Service $ 231,564
Dial-A-Ride Curb-to-curb cab service $ 32,616
Click or tap here to enter text. Click or tap here to enter text. $ Click or tap here to enter text. … … $ …
Subtotal (Must match 2.b. Total Operating Project Expenses) $ 264,180 Provide the anticipated service period.
• For Operating Assistance, the service period should reflect the continuation or expansion of an existing service. • For Mobility Management, the service period should reflect when the proposed program will be implemented and active.
Service Period Selection: 36 Months
Service Period Start: At Specified Date, Include Date Below Specified Date: July 1, 2027
Operating Assistance Documentation Detail
If requesting Operating Assistance, demonstrate that the service is currently active.
If previously funded by OCTA, provide the OCTA agreement number here: C- 5-4014 V If not previously funded by OCTA, provide alternative documentation demonstrating the service is in operation, such as:
1. Service start date and operating schedule 4. Budget documentation supporting active service
2. Recent service logs (e.g., prior 3 months) 5. Internal or third-party service agreement
3. Board-approved program authorization 6. Payroll or invoice records tied to service delivery Attachment 5 included? ☒ Yes ☐ No
If a third-party contractor will be used, provide vendor name and contract period:
Contractor Name: Transportation Concepts (Senior Shuttle) OCY Management (Dial-A-Ride Cab
Service)
Service Period: 5/24/2026 – 5/24/2029
5/24/2026 – 5/24/2029
Mobility Management Documentation Detail
If requesting Mobility Management, describe how the program will be implemented and whether services will be provided inhouse or by a contractor.
Click or tap here to enter text.
If expanding or continuing an existing Mobility Management program, briefly describe the current service.
Click or tap here to enter text.
h
2026 OC EMSD Program Project Nomination
9 Part III – Scored Questions
A. Scope of Work, Goals, and Objectives (15 Points)
Describe the proposed project and explain how it is consistent with the overall goals of the EMSD Program. Clearly identify at least one mobility need or strategy from the 2024 Coordinated Plan that the project addresses (e.g., wheelchair-accessible vehicle shortages; limited weekend, evening, or door-to-door service; medical trip demand; limited access to grocery, senior, or social destinations; or geographic service gaps in underserved areas). Reference the applicable goal, objective, or strategy (include section/page number).
Explain how the project will increase or enhance the availability of transportation for seniors and individuals with disabilities within the proposed service area. For Operating projects, include the service area, service period (up to two years), target population, and estimated number of individuals served. For Capital projects, describe how the requested vehicles or equipment will expand, improve, or sustain service capacity and include why it is required for New / Expansion / Replacement service.
Finally, explain how the project provides transportation-related activities and/or services beyond ADA minimum requirements.
The City of Seal Beach proposed Senior Transportation Program project expansion will remain consistent with EMSD objectives and goals and will continue to improve mobility for local seniors while expanding current services for individuals with disabilities in Orange County and the City. These services will supplement services provided through the OCTA Senior Mobility Program, OC Access, and OC Bus fixed-route service. We will continue to promote public agency outreach to senior and disabled patrons with an emphasis in reaching disadvantaged, underrepresented, and/or diverse communities to ensure services will meet their needs.
We will continue to prioritize funding for agencies that collaborate through partnerships to create efficiencies and lower operating costs for service, and/or increase vehicle revenue hours beyond the minimum ten hours per week. We will maintain our free-of-cost fee structure while maintaining operating hours throughout the week to maximize services provided.
Scope of Work: Enhance our current Senior Mobility Program to include individuals with disabilities. Current senior transportation services provided under the Senior Transportation Program/Senior Mobility Program are available to individuals sixty (60) years of age and older. Trips are provided within Orange County, including trips to/from senior centers, medical appointments, shopping, personal care, and social/ recreational activities. This program has two service options.
1. Senior Transportation Shuttle: Free-to-eligible-user 20-passenger shuttle that runs on a fixed route throughout major City stops, including: the Seal Beach Pier, Leisure World, the Rossmoor Shopping Center, & the North Seal Beach Community Center.
This shuttle complies with ADA requirements, and can accommodate wheelchairs, scooters, and has a bike rack that can hold two (2) bikes. The shuttle includes 10 unique stops across 4 main attractions within the city. It is operational Monday-Friday, 9:00am4:00pm.
2. Dial-A-Ride Cab Service: Free-to-eligible-user cab service that provides pick-up and drop-off transit services to seniors in the City within Seal Beach. On request, riders will be provided with a vehicle that can accommodate mobility devices and/or a lift for scooters and wheelchairs. Riders may travel to any location within Seal Beach, and up to 3 miles outside of the City of Seal Beach (within Orange County) for non-emergency medical needs. It is operational Monday-Friday, 7:30am-5:00pm.
Program/Project Goals: To provide safe, reliable, and timely transportation for seniors and individuals with disabilities of the City of Seal Beach. Eligible trips provided under the program are to the following categories: senior/community center, nutrition needs, medical and health needs, personal care, shopping, and social/recreation. social/recreation trips will allow seniors and individuals with disabilities to go to various destinations within the city for passive/active recreational activities to promote a healthy living lifestyle (i.e., parks, the beach, pier, library, our city Farmer’s Market, trails, etc.).
Service Area/Eligible Trips: Areas within the City of Seal Beach include; the beach, parks, charity/ social group events, community cultural events, education/employment, family/friends, funeral/memorial service, government office/service, library/museum/historical site, health/medical related needs, movies/theater/concerts, religious institutions, restaurant, sporting/fitness, transit center/hub.
Special trip accommodation outside of Orange County:
1) Non-Emergency Medical trips to the Veteran’s Affairs Hospital in Long Beach will be provided; as Seal Beach rests along the Los Angeles and Orange County lines trips (within 3 miles) outside of the city limits will also be provided to service the needs of the veteran population.
2026 OC EMSD Program Project Nomination
10 Service Period: July 2027 – June 2029
Target Population (number of people) in Service Area: 25,242 Estimated Number of Individuals Served: 2,337
Fare Cost/Structure: None. Service is “free-of-cost” to eligible Seal Beach residents.
City of Seal Beach Aligned Goals with 2024 OCTA Human Services Transportation Coordinated Plan:
Goal #1 – Sustain Existing Services (Section 6, p.96).
A: Strategy: Increase or prioritize funding available for capital and operations, first to make existing programs whole and then to enhance services.
Our goal is to sustain our existing transportation program and operations that support mobility access for individuals with disabilities.
Goal #2 – Enhance Existing Service Coverage, Operating Hours, and Capacity (Section 6, p.96).
A: Strategy: Increase funding in general for capital and operations to enhance services.
We will continue to operate our transportation services at no cost for the user and enhance services to continue to include individuals with disabilities while maintaining current operating hours: Shuttle services operating Monday through Friday from 9:00am-4:00pm, and the cab service operating Monday through Friday from 7:30am-5:00pm.
B: Strategy: Prioritize areas that require new or enhanced service for high demand and underserved populations.
Our program provides service to locations that are not regularly serviced by local transit agencies and are in high demand with our resident senior population, with many having disabilities and to continue to include individuals with disabilities that are not 60 years or older.
Goal #3 – Improve Rider-Facing Information and Communication (Section 6, p.97).
A: Strategy: Provide more comprehensive, up-to-date, and easily understandable rider-facing information online and in print.
We will continue to enhance and make our transportation program information easily accessible to riders, both in print and online. This includes on our city website, inside of our shuttle, a quarterly senior newsletter (online and print), print distributed in the Leisure World Weekly, handouts available at our senior centers, and community outreach through in-person presentations.
We also email and mail applications and documentation upon request for those who do not have means to leave their home or do not have printing capabilities.
Goal #4 – Improve Service Quality and Rider Experience (Section 6, p.97).
A: Strategy: Explore opportunities to coordinate program eligibility.
We will continue to enhance and make our transportation program available to individuals with disabilities, who may otherwise not meet eligibility requirements of being 60 years or older of age.
B: Strategy: Improve the safety and security of fixed-route bus stops and designated OC ACCESS stops.
We will continue to strive to not have any open ADA or Title IX complaints or cases. We value a high level of customer service, delivery and timing, care between our partners and riders, and take input and rider feedback into concern to better our services and communicate regularly with our providers to ensure compliance with safety practices.
Scope of Work, Goals, and Objectives Continued
2026 OC EMSD Program Project Nomination
11 Goal #5 – Increase Number of Service Options (Section 6, p.98).
A: Strategy: Provide flexible service options, especially same-day and on-demand services.
We will continue to provide two options for our residents with our fixed-route shuttle and cab service. We do not guarantee same-day or on-demand services, but often these requests are accommodated with our cab service frequently (based on demand with existing trips).
B: Strategy: Improve coordination of services across county line, especially to medical facilities.
We will continue to provide transit to the Long Beach Veterans Affairs Hospital, in Long Beach, located in Los Angeles County. We have a very high veteran population, and often our transportation services are the only way they can reach their medical appointments. Some of these veterans do not meet the age eligibility requirement for regular SMP.
C: Strategy: Increase service options for individuals who have disabilities but may not qualify for OC ACCESS or other age- and triplimited transit services (such as SMP or SNEMT).
We have a large population on fixed-income or have disabilities that may not qualify for other paratransit options. We will continue to be able to bridge this gap and provide no cost transportation services to seniors and individuals with disabilities.
The City’s project will continue to address the following ADA requirements:
• Adequate and accessible rider information (large print, braille, electronic format). • Adequate time to board and exit the vehicle.
• Assistance features (lifts, ramps, wheelchair straps) are always functioning. • Properly trained operators and personnel.
• Service animals allowed.
• Priority seating (pertains to all public transportation methods).
In addition, our shuttle service and personnel will personally assist riders getting on and off the shuttle. We are focused on finding opportunities to expand services and shuttle personnel aids with loading/unloading groceries, moving larger/heavier items around, mobility equipment assistance, and directory assistance. Our Dial-A-Ride program provides services above the ADA requirements with respect to curb-to-curb service and same-day transit.
The project increases and enhances the availability of transportation (options, frequency, location, ADA capable) for the targeted population of seniors and individuals with disabilities. We believe that our goals align with the coordinated plan, in that we will; address identified gaps and barriers, impact the highest number of members of target populations, and maintain a strong potential to be funded and implemented over the life of the plan.
According to the Orange County Office on Aging Area Plan (Section 1, p.8), recognizes the importance of transportation for older adult wellness and the high cost of housing. This plan highlights the importance of affordable transportation options. According to the Elder Index, seniors in “good” health renting in Orange County would have to make approximately $32,064 per year, which is 26% above the national average. Our free-of-cost transportation program serves as a valuable quality of life enhancement and provides seniors and individuals with disabilities with an option to be mobile, independent, and address medical and nutritional needs at no cost to them.
2026 OC EMSD Program Project Nomination
12 B. Project Implementation, Delivery Plan, and Ability of Applicant (15 Points) Describe your agency’s capability to successfully implement and deliver the proposed project. Include your organization’s experience providing transportation to seniors and individuals with disabilities (or human/social services experience, if applicable), staffing structure, key personnel, financial and grant management experience, and dispatching capabilities.
Provide a detailed delivery and implementation plan. For Operating Assistance or Mobility Management projects, include routes or service area, schedules, service period, current and projected ridership, staffing, marketing/outreach strategies, benchmarks, key milestones, and anticipated deliverables. For Capital projects, describe your ability to procure, deploy, operate, and maintain vehicles or equipment, including timelines and responsible staff.
Describe your driver training program (including orientation, classroom and behind-the-wheel training, testing, ongoing training, sensitivity training, emergency preparedness, first aid, and CPR) and your vehicle maintenance program (including pre-trip/posttrip inspections, preventative and routine maintenance, contingency procedures, and applicable inspection compliance such as CHP, if required). Explain how your current services have met prior performance goals, and how this project will enhance, expand, or improve existing services. Attach optional supporting documentation as applicable (e.g., training materials, maintenance forms, inspection forms – CHP or vehicle inspection reports). Attachment 6 included? ☐ Yes ☒ No We will continue to utilize contracted services for our Transportation Program, with the identical providers of these services for our residents and city, for over the past five (5) years. Our Dial-A-Ride cab service will continue to be provided by OCY Management (formerly Cabco) and our Senior Shuttle service will continue to be operated by Transportation Concepts. We have seen large rises in ridership over this time with an incredibly high customer satisfaction rate on service quality, being keen on working with seniors and those with disabilities. Factors contributing to this include but are not limited to retention of key staff and familiar drivers working these routes and within the city and caring for our population, open communication between city staff and key personnel with our contractors, as well as on-going experience navigating financial audits, management of grants, and reporting. We will continue to look for ways to improve existing services and processes.
Current shuttle fixed-routes and cab parameters, hours of operation, days offered, and free-of-cost fares will remain in place. We will continue to utilize recently expanded marketing efforts to provide awareness of the program. Such efforts include quarterly newsletters, flyer displays, and city staff presentations to the community. Our refined application process has included individuals with disabilities, which have been serviced through the 2024 EMSD Grant Program. We have been able to include individuals with disabilities in addition to our existing senior population utilizing our transportation program. We will have maintain messaging about possible caregivers or aides to ride in company with our individuals with disabilities that require such support.
The Senior Shuttle will continue to include ten (10) unique stops across four (4) main destinations within the City while operating Monday-Friday, 9:00am-4:00pm. We will be expanding the shuttle capacity from a 20-passenger shuttle to a 25-passenger shuttle (through our new contract agreement). Riders using the Dial-A-Ride service will be able to travel to any location within Seal Beach, and up to three (3) miles outside of the City of Seal Beach (within Orange County) for non-emergency medical or health needs and may elect to travel to the Veterans Affairs Hospital in Long Beach and to UCI Health of Los Alamitos. The cab service is operational Monday-Friday, 7:30am-5:00pm.
As we utilize contracted services for our program, all drivers are required to complete various trainings set by OCY Management and Transportation Concepts (contracted transit providers). All federal, state, and local requirements as well as Federal Transit Administration, Department of Transportation, and Americans with Disabilities Act requirements are verified between the city, the contractors, and Orange County Transit Authority during our annual Senior Mobility Program audit process. Such training includes driver orientations, classroom and behind-the-wheel training, drug and alcohol testing, ongoing training, sensitivity and disabilities training, emergency preparedness, first aid, and CPR. Our contractors also abide by vehicle maintenance programs with additional requisites set forth by OCTA under SMP. Such maintenance includes pre-trip/post-trip inspections, preventative and routine maintenance, contingency procedures, and applicable inspection compliance such as with the California Highway Patrol. Our current services have met prior performance goals and have exceeded. We look to continue to enhance customer satisfaction, expand ridership, and improve service delivery. Our transportation program has earned recognition with OCTA with high performance, where city staff was invited to present our program at the latest annual SMP Roundtable to other participating cities within Orange County.
2026 OC EMSD Program Project Nomination
13 Project Implementation, Delivery Plan, and Ability of Applicant Continued
2026 OC EMSD Program Project Nomination
14 C. Coordination Planning, Outreach, and Gap Identification (10 Points) Describe how the proposed project responds to specific transportation gaps identified in the 2024 Coordinated Plan. Identify the relevant goal, strategy, implementation priority, and section/page number. Explain the available non-profit, public transit, fixedroute, and ADA complementary paratransit services in your geographic area, and describe how the proposed project avoids duplication and instead fills unmet needs for seniors and individuals with disabilities. 2024 Coordinated Plan section and page number identified? ☒ Yes ☐ No Describe how the project is coordinated with other public agencies, social service providers, and non-profit partners. List key stakeholders involved and explain coordination activities (e.g., shared vehicles, dispatching, scheduling, maintenance, coordinated client trips, training, referral systems, or joint planning efforts). Attachment 7 (Letters of Support) included? ☒ Yes ☐ No Describe the outreach conducted with seniors and individuals with disabilities to identify mobility needs and how that feedback informed the project design. What methods of outreach were utilized to understand needs. Explain how your agency will continue to engage clients to monitor service effectiveness and make adjustments as needed. For public agencies, confirm that a publicly noticed hearing was held, relevant non-profits were notified to ensure coordination and avoid duplication, and required hearing documentation is included. Complete Part IV – Certifications: Public Agency Certification Section.
Our proposed continuation of our transportation services with the enhancement of individuals with disabilities addresses specific gaps identified in the 2024 Coordinated Plan that have an impact on our residents and rely heavily on our transportation program. We have a resident population that identifies as one or multiple, with overlap, with at risk or in need: with a disability, aged 65 or older, or a veteran (Section 3, Table 3, p.26). We will be able to continue to provide services to these residents that have overlap or one of these high-risk identifiers. With older adult populations steadily increasing in Orange County, this figure will continue to rise. Seal Beach has a very high senior population. According to the Coordinated Plan (Section 3, Figure 2, p.27), the rise in Orange County is higher than that of the state of California, so the residents in our city are more impacted than others across the state. Seal Beach has large densities of seniors 65+ by density (Section 3, Figure 3, p.28), as well as low income (Section 3, Figure 5, p.30). Seal Beach also has a very large density of people with disabilities (Section 3, Figure 7, p.32) and veterans (Section 3, Figure 9, p.34). Sustaining our current transportation services allows the City to provide service to individuals with disabilities, as well as to provide our veterans with transit to their medical needs, which often takes them outside of the County lines. In addition, Seal Beach has very large population densities with individuals with zero vehicle availability (Section 3, Figure 14, p.39) which makes this program vital to getting around town for various needs.
Available Public Fixed-Route Services in the geographic area (Section 2, p.10):
1. OCTA Fixed-Route Services – Section 2, Figure 1, p.12: Has “gap” areas in Seal Beach not served.
2. OCTA OC Flex – Section 2, p.14: Cost based, does not service Seal Beach.
3. OCTA OC ACCESS ADA Paratransit – Section 2, p.15: Cost associated, some may not qualify.
4. Long Beach Transit Fixed-Route Bus – Not mentioned/listed in Coordinated Plan (Los Angeles County borders City), does not provide the option for some to reach the Long Beach VA based on stop locations.
5. Anaheim Transportation Network – Section 2, p.13: Cost based, does not service Seal Beach.
Specialized Transportation Services in the geographical area (Section 2, p.15):
1. Senior Non-Emergency Transportation (SNEMT) – Section 2, p.7;16, Section p. 95: Is restricted to only non-emergency medical trips, is limited with one-way trips per month, and rider eligibility can be challenging to navigate and coordinate.
Orange County Senior Mobility Program Participating Organizations (Regional and Neighboring Agencies) – Section 2, Table 1, p.17; Section 2, Table 2, p.22-23:
1. Abrazar: has limited options for riders on locations to travel to.
2. Korean American Seniors Association: does not service Seal Beach.
3. Southland Integrated Services Senior Non-Emergency Medical Transportation Program: is cost-based and does not service the City of Seal Beach.
2026 OC EMSD Program Project Nomination
15 There is a large senior population in Seal Beach and an underserved population of individuals with disabilities in Orange County.
Seal Beach has a senior population of roughly 12,974 individuals aged 60 or older, which is about 51% of the total city population, with 19.9% being individuals with disabilities (2024 American Community Survey 5-Year Estimates). The source for readily available public or non-profit transit options is not equitable based on location and affordability. Our senior and disabled population have needs pertaining to their health, nutrition, social activities, doing business, and leisure. Many do not have transportation, available funds, or family or relatives nearby. Referencing “Section 5, Figure 41 – Factors that Would Make it Easier for Survey Respondents to Travel – p.83”. In addition to providing gaps in service areas from other agencies, enhancement to our transportation services addresses common concerns like: door-to-door transportation service, lower cost transportation services, vehicle that has a wheelchair lift or ramp, assistance entering/exiting vehicle or with packages, vehicle that accommodates a foldable mobility device.
Stakeholders: The City of Seal Beach, Orange County Transit Authority, Leisure World, Meals on Wheels Orange County, Social Care Workers (on behalf of client), Parking Concepts Inc., and OCY Management Inc.
Through our stakeholders, we share information with our senior population here in the City, we report on use and abide to criteria established by OCTA for how we run our SMP, we provide information on programs/admission/assistance with Leisure World Staff, we contract – vehicles (including maintenance, training, testing, service), personnel to drive vehicles, dispatching services for our Dial-A-Ride program. The city handles administrative duties including application management and marketing, reporting, and feedback from residents and/or stakeholders about our services being provided to continue to identify areas to improve. We collaborate with our partners at Leisure World very frequently to ensure quality of service given the large share of riders that are served in this senior community in the city.
We have received in-person feedback from residents about the expansion of our senior transportation services to include individuals with disabilities and or adjust the age of eligibility. We have identified that there is a gap in services available for individuals that are considered “senior aged” or specific to some “retirement programs and pensions” that have ranges in age from 55-59 years old. Based on our current requirements, we would not be able to service individuals with disabilities nor seniors under the age of 60. In addition, one of our council members is a Leisure World resident and is a member of the Orange County Older Adults Advisory Commission and can provide updates on the needs of his constituents. Through our outreach and involvement with Leisure World, we also obtain feedback from other residents involved in various “clubs” associated with senior health inside of the Leisure World community. There is a definite gap in service to our senior “aged” residents with disabilities that are under the age of 60 that are unable to take advantage of our current senior service transportation program. We know that our residents are vocal and active with feedback with their concerns and needs, as also shown by the responses by zip code who submitted surveys in response, with Seal Beach being one of the largest densities in Orange County (Section 4, Figure 31, p.66). These responses confirmed large numbers of veterans, those with disabilities, mobility issues, and lack of vehicle access.
Coordination Planning, Outreach, and Gap Identification Continued 2026 OC EMSD Program Project Nomination
16 Our transportation program addresses various themes or “Needs” (Section 5, p.93-99) that were identified in Coordinated Plan. #1 – Stabilization and Sustainability of Existing Services Continuation of our current transportation service levels with the expansion to include individuals with disabilities will allow us to continue to provide a stable and sustainable level of high-quality existing reliable transportation services. #2 – Enhanced Existing Service Coverage, Operating Hours, and Capacity The EMSD Grant Program allows our program to continue to fill “gap” areas in geographical coverage, or limited fixed route options. In addition, we have wheelchair-accessible vehicles available for both our fixed-route shuttle and our cab services. #3 – Improved Rider-Facing Information and Communication Our program details are made readily available to our residents through print and digital sources. Our shuttle flyer has maps with arrival times and locations and operates on the same routine route Monday-Friday (flyers also located inside of shuttle). Our cab service provides riders with text message updates and pick-up/arrival times. In addition, our City Staff works closely with our counterparts in Leisure World (Administration and Fleet Services) and our transportation providers, so we maintain accurate and reliable, consistent information for our residents.
#4 – Improved Service Quality and Rider Experience
We will continue to work towards providing exemplary customer service and work with our partners to ensure rider experiences are positive and that they feel safe, secure, and welcome. #5 – Increased Number of Service Options
With our current expansion to include individuals with disabilities as well as seniors, we are being able to increase the currently available options for this population to be mobile and allow for extra flexibility for them to take care of their needs. With our program remaining free for our residents, this provides them with the ability to travel while not having to spend additional funds on travel. This is especially important for our seniors and individuals with disabilities that fall into poverty and fixed-income levels.
We market our senior transportation services through various marketing measures within the city in print, online, social media, physically on display at City sites, presentations within Leisure World (visually impaired and disabled club) and over the phone.
Additionally, we provide marketing material and information with our stakeholders (Leisure World – Leisure World Weekly Newspaper, Orange County Meals on Wheels) to share with their patrons to connect with the city. Our service runs constantly without adjustments, except for: City closures and weekends (which are made known ahead of time). The City will explore other grant and transportation funding areas in addition to the commitment to the allocation of the general funds to support the program.
2026 OC EMSD Program Project Nomination
17 D. Service Impact and Performance Measures (5 Points) Describe the measurable service impacts and expected outcomes of the proposed project. Clearly identify the performance measures your agency will use to track effectiveness, including ridership projections, number of persons served, number and purpose of trips (e.g., medical, grocery, social services), service hours added, geographic coverage improvements, access to highdemand destinations, and other relevant measurable units of service.
For Operating or Mobility Management projects, describe how the project will improve frequency, reliability, service span (including weekends or evenings), trip availability, system capacity, customer contacts, travel training, or other applicable service indicators.
For Capital projects, describe how new or replacement vehicles and/or equipment will improve service efficiency, reliability, wheelchair-accessible vehicle availability, fleet condition, geographic coverage, or service expansion. If replacing vehicles, explain the useful life status, maintenance burden, or service reliability issues being addressed.
Provide current baseline conditions and projected outcomes (before and after the project), including anticipated changes in service levels, capacity, or performance. Describe the methodologies and procedures your agency will use to monitor performance, evaluate outcomes, and adjust service as needed. Attach supporting documentation as applicable (e.g., fleet inventory, vehicle condition summary, partnership documentation, service data tables, or other relevant materials).
Looking at the possible positive impact on our community, specifically with seniors, individuals with disabilities, and veterans, Seal Beach has large portions of the population that would benefit from continued expansion of our transportation program.
Referencing percentages (2024 American Community Survey 5-Year Estimates) the City of Seal Beach has a median age of 61.5 years of age with a total population of 25,242 residents. Of this resident population there are approximately 12,974 residents that are 60+, which is about 51% of the total city resident population. Additionally, there are approximately 19.9% indicating having a disability, which accounts for approximately 5,023 residents. The city veteran population accounts for approximately 7.4% of the total population, which is about 1,867 residents. Without accounting for overlaps, our program has a wide ability to benefit large portions of our city, or thousands of residents.
We will track the number of applicants indicating a disability through the application process. We will continue to utilize our numbering system to identify riders who indicate having a disability on the record of the individual. This has been a steady process internally since June 2025. We will continue to track one-way trips, service hours, and service miles. Our program will continue to have service stop locations including locations for: senior/community centers, shopping needs, nutrition needs, medical purposes, and personal needs. The continued desired outcome is to: “provide safe, reliable, and timely transportation for the seniors and individuals with disabilities of the City of Seal Beach.” With the added rider share and inclusion of a new set of residents in Seal Beach, we have adjusted the way we are monitoring rider share on the Senior Shuttle and Dial-A-Ride Program. We have developed administrative practices to distinguish between our senior riders and those that have disabilities.
2026 OC EMSD Program Project Nomination
18 Service Impact and Performance Measures Continued
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2026 OC EMSD Program Project Nomination
19 Service Impact and Performance Measures Continued - Tables CAPITAL – Current Fleet
Complete Attachment 8 if requesting Vehicles. Include all existing vehicles relevant to the proposed project. Attachment should include information from the following table if applicable (do not fill table here). Attachment 8 included? ☐ Yes ☒ No Year/Model/Make Milage
Purchase or
Lease Date
12-Month
Maintenance
Costs
Service
Hours /
Day
Service
Days /
Week
Total Miles
Traveled /
Service Day
CAPITAL – Current Equipment
Complete Attachment 9 if requesting Equipment. Include all existing equipment relevant to the proposed project. Attachment should include information from the following table if applicable (do not fill table here). Attachment 9 included? ☐ Yes ☒ No Equipment Type Purpose Age
(Years)
Manual or
Automated
Replacement
Needed (Y/N) Reason for Replacement
OPERATING – Performance Measures
Complete the table below if requesting Operating Assistance or Mobility Management funding. Provide current baseline values and projected outcomes with funding.
Performance Indicator Current (Baseline) Projected with Funding Annual Change One-Way Trips per Day: 65 71 6
Service Hours per Week: 36.42 39.84 3.42
Weekday Miles: 464.50 508.16 43.66
Weekend Miles: N/A N/A N/A
Persons Served Annually: 28,480 31,157 2,677
Medical Trips: 1,994 2,181 187
Wheelchair Accessible
Vehicle Trips:
120 131 11
Customer Contacts (if MM): N/A N/A N/A
Drivers Trained (if applicable): N/A N/A N/A
2026 OC EMSD Program Project Nomination
20 E. Emergency Planning and Preparedness and Project Readiness (5 Points) Describe your agency’s emergency planning and preparedness policies and procedures, including continuity of operations plans and protocols for serving seniors and individuals with disabilities during emergencies. Explain how your agency coordinates with the County Office of Emergency Services and/or local jurisdictions, including identification of accessible vehicles or other transportation resources that may be deployed during an emergency.
Indicate whether your agency has participated in Countywide or Citywide emergency drills within the past year and describe your role in those exercises. Describe the readiness of the proposed project, including procurement timelines (if applicable), implementation steps, staffing readiness, and any coordination already completed to ensure timely deployment of services or equipment. Attach supporting documentation as applicable (e.g., emergency plans, MOUs, drill participation records, or vehicle availability coordination). Attachment 10 included? ☐ Yes ☒ No Our contracted stakeholders each have their own individual policies and procedures to address emergency planning and preparedness. Our two contacted providers: Transportation Concepts and OCY Management, are required to submit annual training reports, certifications, and testing protocols.
Additionally, the City is a member of California Joint Powers Insurance Authority (CJPIA) and collaborates regularly to remain compliant with risk management best practices. The city actively participates in Countywide emergency training provided by the California Governor’s Office of Emergency Services (Cal OES) and the American Red Cross. City staff also participate in training and classes hosted by the Seal Beach Police Department Emergency Management and Marine Safety, either hosting or informational presses (Natural Disaster Drills, Active Shooter, Workplace Violence, Sheltering, First Aid/CPR/AED). In addition, Seal Beach is also supported by inter-agency coordination between the City of Long Beach, the City of Huntington Beach, the City of Los Alamitos, the United States Naval Special Operations Base, and serviced by Orange County Fire Authority for emergency services. 2026 OC EMSD Program Project Nomination
21 Emergency Planning and Preparedness and Project Readiness Continued Click or tap here to enter text.
2026 OC EMSD Program Project Nomination
24 Attachments
All attachments must be clearly labeled and correspond to the attachment number listed in this application. Applicants are responsible for ensuring all required attachments are complete and included at the time of submittal.
Types of Attachments
This application includes two types of attachments:
1. Embedded Attachments (Tables Included in attachments) Attachments 4, 5, 8, and 9 include required tables within this document. • Applicants must complete these tables directly in this application. • Do not upload these as separate files.
• These sections are considered part of the main application and will be reviewed accordingly.
2. Supporting Attachments (Upload Required)
All other attachments must be provided as supporting documentation. • Clearly name each attachment (e.g., “Attachment 2 – Audited Financial Statement”). • Insert each attachment directly after its corresponding attachment divider page in the final PDF. • Each attachment page serves as a cover/title page for the supporting documentation.
Required vs. Optional Attachments
Applicants are only required to include attachments that apply to their request. • Capital applicants must complete Attachment 4 and include supporting documentation as applicable. • Operating applicants must complete Attachment 5 and include supporting documentation as applicable. • Attachments such as Letters of Support, Agency Overview, and Emergency Plans are optional but encouraged where relevant.
Supporting Documentation
For attachments requiring documentation (e.g., financial statements, local match, vehicle quotes, service records):
• Include all required backup materials following the corresponding attachment page. • Ensure documentation is clear, legible, and relevant to the request. • Multiple documents may be included under a single attachment section.
Final Submission Format
Applicants must submit one complete PDF document that includes:
1. Completed application form (including all embedded tables).
2. All required supporting attachments inserted in order after each attachment page.
Incomplete applications or missing required attachments may not be considered for funding. 2026 EMSD Grant Program Project Nomination
i
Attachment 1:
Agency Overview Supporting Documentation and Service Area Map – Optional Insert your agency’s overview supporting documentation and service area map after this page. 2026 OC EMSD Program Project Nomination
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Attachment 2:
Audited Financial Statement and Title VI and ADA Compliance Insert your agency’s audited financial statement and Title VI and ADA compliance documentation after this page. 2026 OC EMSD Program Project Nomination
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Attachment 3:
Local Match Source Documentation
Insert your agency’s local match documentation after this page. 2026 OC EMSD Program Project Nomination
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Attachment 4:
CAPITAL ONLY – Capital Project Detail and Cost-Effectiveness Documentation Applicants requesting Capital funding (Vehicles and/or Equipment) must complete the applicable table(s) below. • Complete Vehicle Table if requesting vehicles
• Complete Equipment Table if requesting equipment
• Complete both if requesting both
Provide sufficient detail to demonstrate cost-effectiveness, useful life, and how the request supports new, expanded, or replacement service. This attachment is required for Capital applications. Add to table(s) as needed. 2026 EMSD Grant Program Project Nomination
v
Vehicle Request Detail Table
Vehicle Type
(Year/Make/Model) Quantity
Unit
Cost
($)
Total
Cost
($)
New /
Expansion /
Replacement
New
or
Used1
Purchase
or Lease2
ZeroEmission
(Y/N)3
Useful Life
(Years/Miles)
Est.
Annual
Passenger
Trips
Est.
Annual
Miles
Cost
Effectiveness
Justification
(Y/N)4
1. Used vehicle requirements apply (See Part II – Funding Request 6. Supplemental Detail a. For Capital Projects (Vehicles and/or Equipment Only).
2. Leased vehicle requirements apply (See Part II – Funding Request 6. Supplemental Detail a. For Capital Projects (Vehicles and/or Equipment Only).
3. Zero-emission access demonstration requirements apply (See Part II – Funding Request 6. Supplemental Detail a. For Capital Projects (Vehicles and/or Equipment Only).
4. Include cost effectiveness documentation directly after this page.
Equipment Request Detail Table
Equipment Type Description /
Components Quantity Unit Cost ($) Total Cost ($) New / Expansion / Replacement Useful Life
(Years)
CostEffectiveness
Justification
(Y/N)5
5. Include cost effectiveness documentation directly after this page. 2026 EMSD Grant Program Project Nomination
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Attachment 5:
OPERATING ONLY – Operating Assistance Documentation Detail Applicants requesting Operating Assistance funding must complete the table below to demonstrate that the proposed service is currently active.
All applicants requesting Operating Assistance must complete this table and include supporting documentation, as applicable. Insert documentation directly after this attachment page in the final PDF. 2026 EMSD Grant Program Project Nomination
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Operating Assistance Verification Table
Requirement Provided (Y/N) Brief Description (if applicable) Service Start Date Y Current 2024 EMSD Grant Agreement ends on June 30, 2027 – per the extension.
Operating Schedule (Days/Hours) Y Shuttle: Mon.-Fri., 9:00am-4:00pm Cab: Mon.-Fri., 7:30am-5:00pm Recent Service Logs (last 3 months) Y Ridership Reports from May, June, July 2026 Board-Approved Program Authorization Y Current Agreement AGMT C-5-4014 V in place with 2024 EMSD Grant Budget Documentation Supporting Active Service Y EMSD Invoices for May, June, July 2026 Internal or Third-Party Service Agreement Y Current Agreements with Transportation Concepts and OCY Management LLC Payroll or Invoice Records Supporting Service Delivery Y Provider Invoices for May, June, July 2026 Service Start Date Y Start date of July 1, 2025
Additional Notes (Optional)
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Supporting Documentation Guidance
Applicants must provide documentation demonstrating that the service is currently in operation, include directly after this page. Examples include:
• Service schedules or program start date records
• Recent trip logs or service reports
• Board approvals or program authorization documents
• Budget or financial records supporting the service
• Contracts or agreements (if applicable)
• Payroll or invoices tied to service delivery
2026 EMSD Grant Program Project Nomination
viii
Attachment 6:
Operational Policies (Driver Training / Maintenance / Inspections) – Optional Insert your agency’s operational policies documentation after this page. 2026 OC EMSD Program Project Nomination
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Attachment 7:
Letters of Support
Insert your agency’s letters of support after this page. 2026 OC EMSD Program Project Nomination
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Attachment 8:
Existing Transportation-Related Service(s) – Vehicles
Insert your agency’s local match documentation after this page. 2026 EMSD Grant Program Project Nomination
xi
Attachment 8: Existing Transportation-Related Service(s) – Vehicles Year/Model/Make Milage
Purchase or
Lease Date
12-Month
Maintenance
Costs
Service
Hours /
Day
Service
Days /
Week
Total Miles
Traveled /
Service Day
2017 Ford Elkhart (Shuttle) 155,196 June 2017 N/A 6 5 74 2025 Toyota Sienna (cab - 437) 31,949 Jan. 2026 N/A 9.5 5 18.9 2026 EMSD Grant Program Project Nomination
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Attachment 9:
Existing Transportation-Related Service(s) – Equipment
Insert your agency’s local match documentation after this page. 2026 EMSD Grant Program Project Nomination
xiii
Attachment 9: Existing Transportation-Related Service(s) – Equipment Equipment Type Purpose Age
(Years)
Manual or
Automated
Replacement
Needed (Y/N) Reason for Replacement
2026 EMSD Grant Program Project Nomination
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Attachment 10:
Emergency Planning and Preparedness Supporting Documentation – Optional Insert your agency’s emergency planning and preparedness and supporting documentation after this page. 2026 OC EMSD Program Project Nomination
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Attachment 11:
Private Non-profit Agency – Corporation Status Inquiry Documentation Insert your agency’s corporation status inquiry documentation after this page. Applicable to private non-profit organizations only. 2026 OC EMSD Program Project Nomination
xvi
Attachment 12:
Public Agency Eligibility Documentation
Insert your agency’s public agency eligibility documentation after this page. Applicable to public agencies only. 2026 OC EMSD Program Project Nomination
xvii
Attachment 13:
Coordinated Plan Population Density Maps: Seniors, Disabled, Veterans Insert supplemental attachments after this page. Add to as needed.
City of Seal Beach
Community Services and Recreation Department
211 8TH Street, Seal Beach, CA 90740
(562) 431-2527, Ext. 1307
Seal Beach Transportation Program Application
Enhanced Mobility for Seniors and Adults with Disabilities Requirements for Admission Incomplete applications will NOT be processed • The participant must be a current resident of the City of Seal Beach. • Provide proof of residency: utility bill, home insurance, deed, or acceptable documentation with name and address clearly indicated. • Provide a copy of your personal photo identification card: driver’s license or identification card, or a government issued ID. • Individuals under 60 years of age require a Physician’s Letter submitted with the application documenting self-stated disability.
Application Submission: via email to: [email protected] OR in person or by mail to: City of Seal Beach, 211 8th Street, Seal Beach, CA, 90740 ** Please note: Leisure World residents may provide their Golden Rain Foundation ID in lieu of documentation to prove residency. ** Participant Information
First Name: Under 60 Years Old?
Yes No
Birth Date (MM/DD/YY):
Last Name: Gender:
Address:
Phone: Email:
Emergency Contact Information
First & Last Name: Relationship:
Phone: Email:
First & Last Name: Relationship:
Phone: Email:
Mobility Information
Does the participant have any physical or functional limitations, impairment, or restrictions? If yes, please describe:
Does the participant require a mobility device or special mobility assistance equipment?
Yes
No
Cane
Walker
Scooter
Wheelchair Other:__________________
Will a personal care attendant or assistant be traveling with The participant?
Yes No
Will the participant require door-to-door assistance? Yes No Release
I hereby wave the right to make any claims against the City of Seal Beach, its officers, agents, employees, and volunteers from any and all claims, damages, liability, bodily injury, death, expenses, and judgments, including attorney fees, expert witness fess, and court costs in any way arising from my (and personal care attendant) participation from the City of Seal Beach’s Senior Transportation Program. This waiver is given in partial consideration for permission granted by the City of Seal Beach to participate in the Program. I further understand that the City does not provide any form of insurance for program participants (and personal care attendants).
I have read and understand this release from liability. My signature verifies all information in this application to be true.
Signature: __________________________________________________________ Date: ________________________________________
FOR OFFICIAL CITY USE ONLY
SB ID #:
Date Assigned:
Hours of Operation:
Monday—Friday, 7:30 AM—5:00 PM
Call toll free: (877) 224-8294 (24-hours or more in advance). Provide the operator with your ID number (SBXXXX).
Request “Round Trip” if you need a ride back home.
Provide a pick-up date and time.
Provide a pick-up and drop-off location.
Please note any special accommodations you require to the operator, like assistance to the vehicle or having a mobility device.
It is recommended to reserve trips well in advance from the date needed. It is also suggested to provide a conservative pick up time if unsure to prioritize your reservation ahead of “new” requests. *Same day reservations cannot be guaranteed, but may be accommodated based on availability* Seal Beach Transportation Program
Dial-A-Ride Service
The City of Seal Beach Transportation Program includes our free of cost Dial-A-Ride Cab Service. This service operates Monday—Friday, providing transit throughout the City of Seal Beach. Cab service, upon request, can accommodate wheelchairs, scooters, other mobility devices. For eligibility of this service, you must be a Seal Beach resident, be 60+ years old, and be pre-registered with the City of Seal Beach with an assigned ID Number (SBXXXX) ready to provide to the driver, to ride.
Riders may travel to any location within Seal Beach, and up to three (3) miles outside City limits (within Orange County) - for non-emergency medical or health needs. Users are eligible to travel to the VA Hospital in Long Beach and UCI Health, Los Alamitos (off Katela Ave.) Reserving a Ride
Contact Us
City of Seal Beach California Yellow Cab
Tatiana Marocco, Recreation Specialist Reservations: (877) 224-8294 Email: [email protected]
Phone: (562) 431-2527 ext. 1307 or 1390
Address: 211 8th Street, Seal Beach, CA 90740
The City of Seal Beach Transportation Program includes our free of cost Senior Shuttle Service. This shuttle operates on a fixed route throughout major City stops including; the Seal Beach Pier, Leisure World, the Rossmoor Shopping Center, and the North Seal Beach Community Center. This (twenty) 20 passenger capacity Shuttle can accommodate wheelchairs, scooters, other mobility devices, and has a bike rack that can hold two (2) bikes. For eligibility of this service, you must be a Seal Beach resident, be 60+ years old, and be pre-registered with the City of Seal Beach with an assigned ID Number (SBXXXX) ready to provide to the driver, to ride. ALL passengers MUST sign-in when boarding the shuttle.
Can my caregiver ride along? Why do I need to sign-in to ride the shuttle? Yes, each registered user can bring one (1) caregiver. Our Transportation Program receives grant funding to support total costs, and riders signing in is a requirement (for reporting purposes) to ensure continued receipt of these dollars.
Can I wave the shuttle down if I’m not at a designated pick-up/drop-off location? No, the shuttle will only stop at the designated locations so please plan accordingly.
When can I expect the shuttle in Leisure World?
The listed time on the schedule is the when the shuttle is expected to be at St. Andrews Gate (the 1st of 4 stops in Leisure World) and riders can expect the shuttle at the other stops a few minutes after the scheduled time.
When can I expect the shuttle at the Shops at Rossmoor? The listed time on the schedule is the when the shuttle is expected to be at Ralph’s (the 1st of 4 stops in the shopping center), and riders can expect the shuttle at the other stops minutes after the scheduled time.
Why can’t the shuttle take me to a location outside of Seal Beach? The shuttle will only go to the designated locations in the City (fixed route).
Is 4:00pm the last pick up or when the service ends?
Service ends at 4:00pm, making the 3:00pm loop the final loop. Make sure to plan accordingly.
Example: If you are going to Ralph’s and need a return trip, plan on being at the Ralph’s pick-up location no later than 3:40pm for the last trip going back.
What if I miss the last pick up?
The shuttle service is done at 4:00pm, so you may need to find an alternate ride home, like using the Dial-A-Ride Service if the shuttle is missed.
Senior Shuttle Frequently Asked Questions
Seal Beach Transportation Program
Senior Shuttle Service
Registration:
To register, please submit a completed Transportation Program Application. This application can be found online at:
www.sealbeachca.gov under Senior Services or Forms. You may also pick up the application in-person at City Hall, request receipt by email or physical mail. Completed applications must include photo identification for proof of Seal Beach residency and date of birth (Driver’s License, State or Government issued ID) along with proof of residency (Utility Bill, Deed, etc.). For Leisure World residents only, you may elect to provide your Golden Rain Foundation ID Card for proof of residency in lieu of a document. Completed applications can be delivered in-person at City Hall, mailed, or emailed.
City of Seal Beach Leisure World Residents
Tatiana Marocco, Recreation Specialist Robann Arshat, Member Resource Liaison Email: [email protected] Email: [email protected] Phone: (562) 431—2527 ext. 1307 or 1390 Phone: (562) 431-6586 ext. 2317 Address: 211 8th Street, Seal Beach, CA 90740 Member Resources Building to submit your application and ID Leisure
World
Shops at
Rossmoor
Ralph’s
Sprouts Target
NSBC
SB Pier
Hours of Operation:
Monday - Friday, 9:00 AM - 4:00 PM
The Senior Shuttle runs each day from 9:00am to 4:00pm.
Each day begins and ends at Leisure World. All of the
times listed below are approximate. There will be no rides from 12:00pm to 1:00pm for lunch break. The shuttle will finish driving to all designated stops in Leisure World at both 12pm & 4pm to drop off riders only.
Leisure World Stops: Shops at Rossmoor Stops:
1. St. Andrews Gate 1. Ralph’s
2. St. Andrews/Golden Rain 2. Target
3. Amphitheater 3. Sprouts
4. Interlachen/Del Monte 4. N. SB Community Center
Shuttle Stops & Approximate Pick Up Times
Shuttle Stops
going toward Pier
Shuttle Stops going
toward Shops at Rossmoor
Shops at
Rossmoor
Leisure
World SB Pier Pavilions
Leisure
World
9 am 9:15 am 9:20 am 9:25 am
9:40 am 10 am 10:15 am 10:20 am 10:25 am
10:40 am 11 am 11:15 am 11:20 am 11:25 am
11:40 am 12 pm*
1 pm 1:15 pm 1:20 pm 1:25 pm
1:40 pm 2 pm 2:15 pm 2:20 pm 2:25 pm
2:40 pm 3 pm 3:15 pm 3:20 pm 3:25 pm
3:40 pm 4 pm*
*12pm & 4pm:
LW Drop off Only
Amphitheater
Interlachen/Del Monte
St Andrews/Golden Rain
St Andrews Gate
Shuttle Stop
Scheduled Shuttle Stop
Shuttle Route
Direction of Travel (northbound)
Direction of Travel (southbound)
Pavilions
E
Service Map, Stop Locations, and Route Times
City of Seal Beach
µ
Legend
City Boundary 0 2,500 5,000 10,000
Feet
Source Info: City Boundary layer from Orangey County LAFCO 2015 Map by Grant T. (November 2015)
City of Seal Beach
Transit Complaint Form
Department of Recreation and Community Services
The Department of Recreation and Community Services is inclusive and accessible; we offer diversity of experience and value environmental stewardship and personal development with efforts to ensure that all programs, services, activities, and benefits are implemented in a non-discrimination manner.
Any person who believes that he or she, individually, or as a member of any specific class of persons, has been subjected to discrimination based on race, color, national origin may file a written complaint within 180 days after the date of the alleged discrimination with the City of Seal Beach, the FTA or the Secretary of Transportation.
Please provide the following information:
Your Name: Phone Number:
Street Address:
City: State: Zip Code:
Person(s) discriminated against (if someone other than complainant):
Street Address:
City: State: Zip Code:
Date of Incident: ____________________________________
Which of the following best describes the reason for the alleged discrimination took place (circle one) • Race
• Color
• National Origin (Limited English Proficiency)
If you are unable or incapable of providing a written statement but wish the City of Seal Beach to investigate alleged discrimination; a verbal complaint of discrimination may be made. Please contact (562) 431-2527 and speak with a City Representative. The complainant will be interviewed by an appropriate official authorized to receive complaints. If necessary, the official will assist you in converting verbal complaints to writing. Translation services will be provided for all complainants, as necessary. All complaints must, however, be signed by the complainant or his/her representative.
Please describe the alleged discrimination incident. Provide the names and titles of all employees involved if available. Explain what happened and whom you believe was responsible. Please use the back of this form if additional space is required.
__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Please mail your complaint form directly to the City of Seal Beach to the following address:
City of Seal Beach
Department of Recreation and Community Services
211 8th Street
Seal Beach, CA 90740
Have you filed a complaint with any other federal, state, or local agency? (Circle one) Yes/No Agency: Contact Person:
Street Address:
City: State: Zip Code:
Agency: Contact Person:
Street Address:
City: State: Zip Code:
I affirm that I have read the above charge and that it is true to the best of my knowledge, information, and belief.
__________________________________________________________________________________ Complainant’s Signature Date
Leisure
World
Shops at
Rossmoor
Ralph’s
Sprouts Target
NSBC
SB Pier
Hours of Operation:
Monday - Friday, 9:00 AM - 4:00 PM
The Senior Shuttle runs each day from 9:00am to 4:00pm.
Each day begins and ends at Leisure World. All of the
times listed below are approximate. There will be no rides from 12:00pm to 1:00pm for lunch break. The shuttle will finish driving to all designated stops in Leisure World at both 12pm & 4pm to drop off riders only.
Leisure World Stops: Shops at Rossmoor Stops:
1. St. Andrews Gate 1. Ralph’s
2. St. Andrews/Golden Rain 2. Target
3. Amphitheater 3. Sprouts
4. Interlachen/Del Monte 4. N. SB Community Center
Shuttle Stops & Approximate Pick Up Times
Shuttle Stops
going toward Pier
Shuttle Stops going
toward Shops at Rossmoor
Shops at
Rossmoor
Leisure
World SB Pier Pavilions
Leisure
World
9 am 9:15 am 9:20 am 9:25 am
9:40 am 10 am 10:15 am 10:20 am 10:25 am
10:40 am 11 am 11:15 am 11:20 am 11:25 am
11:40 am 12 pm*
1 pm 1:15 pm 1:20 pm 1:25 pm
1:40 pm 2 pm 2:15 pm 2:20 pm 2:25 pm
2:40 pm 3 pm 3:15 pm 3:20 pm 3:25 pm
3:40 pm 4 pm*
*12pm & 4pm:
LW Drop off Only
Amphitheater
Interlachen/Del Monte
St Andrews/Golden Rain
St Andrews Gate
Shuttle Stop
Scheduled Shuttle Stop
Shuttle Route
Direction of Travel (northbound)
Direction of Travel (southbound)
Pavilions
E
Service Map, Stop Locations, and Route Times
CITYHALL 211 EIGHTH STREET
SEALBEACH, CALIFORNIA 90740
(562) 431-2527 • www.sealbeachca.gov
August 12, 2026
Orange County Transportation Authority
550 South Main Street
P.O. Box 14184
Orange, CA 92863-1584
Subject: Letter of Support for the City of Seal Beach's 2026 Enhance Mobility for Seniors and Individuals with Disabilities (EMSD) Grant Program Application Dear OCTA Grant Committee,
I am writing on behalf of the City of Seal Beach in support of the City's application for the Enhanced Mobility for Seniors and Individuals with Disabilities Program grant.
Seal Beach has a significant portion of seniors that make up our population, which makes our transportation program especially vital in our city. Our senior population utilizes the City’s shuttle and cab services to get around town, go shopping, take care of their nutritional needs, get to medical appointments, or socialize. This program has been instrumental in ensuring that seniors in Seal Beach have access to reliable and convenient transportation. This service has not only enhanced their mobility but also significantly improved their quality of life.
The proposed grant will continue the City's efforts to provide efficient and accessible transportation for seniors, with the inclusion of individuals with disabilities. We firmly believe that the City of Seal Beach is a deserving candidate for this grant. Improving the lives of seniors is commendable and aligns with the goals of the OCTA's program.
We are confident that the grant will significantly enhance the City's capacity to serve its senior citizens and individuals with disabilities, thereby making a positive difference in their lives. Thank you for considering our application.
Sincerely,
Lisa Landau
Mayor
City of Seal Beach
CC: City of Seal Beach City Council
August 4, 2026
Orange County Transportation Authority
550 South Main Street
P.O. Box 14184
Orange, CA 92863-1584
Re: Letter of Support for the City of Seal Beach's Grant Application Dear OCTA Grant Committee,
I am writing on behalf of Meals on Wheels Orange County, a non-profit organization dedicated to providing free lunch meals to seniors in the City of Seal Beach. We are proud to support the City's application for the Enhanced Mobility for Seniors and Individuals with Disabilities Program grant.
Our organization has witnessed firsthand the significant impact of the City's senior transportation system.
A large number of seniors who benefit from our program rely on this system to reach us. It has proven to be an essential service, enhancing the mobility of our seniors, and by extension, their quality of life.
The proposed grant will undoubtedly bolster the City's efforts to provide efficient and accessible transportation for seniors and individuals with disabilities. This aligns perfectly with our mission at Meals on Wheels Orange County, as it would enable more seniors to access our services and participate in community life.
We firmly believe that the City of Seal Beach is a deserving candidate for this grant. Their commitment to improving the lives of seniors and individuals with disabilities is commendable and aligns with the goals of the OCTA's program.
Thank you for considering our letter of support. We are confident that the grant will significantly enhance the City's capacity to serve its senior citizens and individuals with disabilities, thereby making a positive difference in their lives.
Please feel free to contact Alejandro Lupercio at [email protected] if you require any additional information or have further questions.
Sincerely,
Alejandro Lupercio
Vice President Social Services
Meals on Wheels Orange County
Direct 714-823-3290
1 Jeffrey J. Mulqueen
13660 Annandale Dr., 21F, Seal Beach, CA 90740
August 14, 2026
Nathan Caukin
Recreation Specialist
211 Eighth Street
Seal Beach, CA 90740
[email protected]
Dear Mr. Caukin,
I am writing this letter of support to help ensure the continuity and any possible expansion of programs supporting accessibility and mobility for seniors and individuals with disabilities who live at Leisure World Seal Beach and in the general population of Seal Beach.
Leisure World (LW) Seal Beach is a 55+ community of approximately 9,600 seniors who reside in its 6,608 homes. Our LW population represents approximately one third of the 28,000 total population of Seal Beach and is a substantial share of Seal Beach’s senior population. Disability prevalence rises notably with age, with nearly 44% of adults 65 and older reporting some form of disability, which is significantly higher than the national average for all adults. According to the CDC’s Behavior Risk Factor Surveillance System (BRFSS) data, about 28.7% of U.S. adults report some functional disability, while this rate increases to approximately 44% for adults aged 65 and older.
Seniors often experience limitation in mobility as a consequence of the impact of physical and cognitive disabilities, with mobility disabilities being the most common.
The prevalence of disabilities further climbs in adults over 75 years of age, where nearly half report at least one disability. These data confirm my daily experiences, observations, and interactions as a resident of Leisure World Seal Beach and in my role as President of Leisure World’s Board of Directors.
Seal Beach leverages the Enhanced Mobility Program to provide specialized transportation services that help seniors and individuals with disabilities access essential services, social activities, and healthcare. The Enhanced Mobility of Seniors and Individuals with Disabilities (EMSD) Program in Orange County is based on the federal FTA Section 5310 program, which funds transportation projects aimed at improving mobility for older adults and people with disabilities when regular public 2 transit is unavailable or insufficient. The City of Seal Beach operates a Senior Transportation Services program that consists of two main offerings. The Senior Shuttle Service is a fixed-route, 20 passenger shuttle equipped with wheelchair access. The shuttle runs through key city locations including the Seal Beach Pier, Leisure World, Rossmoor Shopping Center and the North Seal Beach Community Center. It operates Monday through Friday from 9:00 AM to 12:00 PM, and from 1:00 PM to 4:00 PM.
The Dial-A-ride Service, provided by California Yellow Cab, is a reservation-based curbto-curb service for travel within Seal Beach city limits and up to three miles outside for non-emergency medical trips. Accessible destinations include VA Long Beach and UCI Health-Los Alamitos. Hours are Monday through Friday, 7:30 AM to 5:00 PM, with reservations required at least 24 hours in advance.
By implementing the EMSD Program, Seal Beach has improved accessibility and mobility for seniors and individuals with disabilities, enabling residents to safety reach healthcare appointments, community centers, grocery stores, and social events. This program embodies the federal and state goals of Section 5310 to reduce transportation barriers, enhance independence, and support quality of life for vulnerable populations.
The EMSD Program is a dependable source of transportation for residents at Leisure World whose need for accessibility and mobility grows as they age. Your effort to continue accessibility and mobility supports makes a positive difference for seniors and individuals with disabilities who reside in Seal Beach.
Sincerely yours,
Jeffrey J. Mulqueen
President of the Golden Rain Foundation
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Augusl 17 ,2026
Oran ge Curnty Transportation Authority
550 South Main Street
P.O. Box 14184
Orange, CA 92863-1584
Subiect Letter of Support for the City of Seal Beach's 2026 Enhance Mobilily for Seniors and lndividuals with Disabitities (EMSD) Grant Program Application
Dear OCTA Grant Committee,
I am writing on behalf of the Golden Age Foundation, a non-profit organization that serves the Leisure World commtmity in Seal Beach. lts purpose is to make our community a better and happier place in which to live, and all Golden Age programs are provided free to Leisure World shareholders, as the Foundation ls entirely staffed by volunteers" We stand in support of the City's application for lhe Enhanced Mobility for Seniors and lndividuals with Disabilities P rogram Grant.
We know firsthand some of the challenges our community faces with mobility, getting lo medical appointments, shopping for nutritional and home needs, and the fee8ng of being independent.
The City's transportation program provides our community with reliable transportation with lhe shutda and cab services yearround. This program is an incredibly valuable resoure,e to our seniors and individuals with disatilities.
The proposed grant \^,ill strengthen the City's commitmenl to providing eflicient and accessible transportation for senrors and individuals with disabilities. These efforts align with our commitment to enhancing the quality of life of our residents.
We firmly believe that the City of Seal Beach is a deserving candidate for this grant. lrnproving the lives of seniors and individuals with disabilities is an admirable cause and aligns with lhe goals of the OCTAs program.
Thank you for considering our letter of support. We are confidenl thal the grant will significanUy enhanc€ the City's capacity to serve its senior citizens and individuals wilh drsabililies, thereby making a positive difference in theh lives.
Y'
President
Goldan Age Foundation
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N O T I C E O F P U B L I C H E A R I N G
NOTICE IS HEREBY GIVEN that the City Council of the City of Seal Beach will hold a public hearing on Monday, September 14, 2026, at 7:00 p.m. or soon thereafter in the City Council Chambers, 211 Eighth Street, Seal Beach, California, to consider the following item:
Authorization to Source Grant Funding for Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD). The City Council will consider the authorization for Community Services and Recreation to source federal funds under the Orange County Enhanced Mobiity for Seniors and Individuals with Disabilities Grant (formerly FTA Section 5310 Program) administered by the Orange County Transportation Authority (OCTA).
Applicant: City of Seal Beach
Subject Location: City-wide
PUBLIC COMMENT: At the above time and place all interested persons or agencies providing similar services in the geographical area may be heard if so desired. If you wish to submit comments on the Public Hearing item via email to the City Clerk at [email protected] or via the comment icon through the online portal at https://www.sealbeachca.gov/Government/Agendas-Notices-Meeting-Videos. All email comments the City Clerk receives before the start of the meeting will be posted on the City’s website and distributed to City Council. Email comments received after 5pm will be posted on the City’s website and forwarded to the City Council after the meeting. For more information or assistance with submitting your comments to the City Council, please see the meeting agenda or contact the City Clerk at (562) 431-2527 Ext. 1305 or via email at [email protected].
FURTHER INFORMATION: Persons with questions about the EMSD Grant should contact Nathan Caukin at 562-431-2527, ext. 1390 or [email protected].
Name: Shaun Temple
Title: Community Development Director
City of Seal Beach
Will be Submitted to the SUN Newspaper this 20
th day of August 2026
August 20, 2026
Seal Beach Sun Newspaper
Attention: Legal Advertising
1500 Pacific Coast Highway
Suite G
Seal Beach, CA 90740
Public Notice
Ordinance 1729 (SB 1485)
Ordinance 1730 (SB 1486)
Notice of Public Hearing – EMSD Grant (SB 1487)
For publication on August 27, 2026, pursuant to the agreement dated May 15, 1989.
Please provide one (1) galley proof prior to publication and one (1) proof of publication to the attention of the City Clerk of the City of Seal Beach.
Please submit invoices to the City of Seal Beach, attention of the City Clerk.
Thank you,
Brandon DeCriscio
Deputy City Clerk
RESOLUTION XXXX
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING THE APPLICATION FOR AND RECEIPT OF
GRANT FUNDS FOR THE 2026 ENHANCED MOBILITY
FOR SENIORS AND INDIVIDUALS WITH DISABILITIES
(EMSD) GRANT PROGRAM
WHEREAS, the Orange County Enhanced Mobility for Seniors and Individuals with Disabilities (EMSD) Grant Program call for projects (call) intends to support the needs of seniors beyond traditional public transportation, and for individuals with disabilities beyond that required by the Americans with Disabilities Act (ADA); and, WHEREAS, the EMSD Grant Program offers grant opportunities to non-profit organizations (non-profits) and local public agencies to help meet these needs; and, WHEREAS, the 2026 EMSD call will make up to $5.85 million in local funds available for eligible and high scoring projects. Funding availability is based on the Federal Transit Administration (FTA) Section 5310 Program apportionment to OCTA and is subject to change; and,
WHEREAS, all projects proposed and considered for funding are required to be included in the 2024 Humas Services Transportation Coordination Plan (Coordinated Plan). Under FTA guidelines, the Coordinated Plan is required to be updated every four years; and, WHEREAS, the City of Seal Beach, does not have non-profit agencies that are readily available to provide the proposed service; and,
WHEREAS, the City of Seal Beach desires to pursue enhancement to the current Senior Transportation Services Program; and,
WHEREAS, the City of Seal Beach commits to and agrees to fully support intentions to meet the transportation needs of older adults and people with disabilities when services are unavailable, insufficient, or inappropriate.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
SECTION 1. City of Seal Beach staff is directed to submit the grant application package to the Orange County Transit Authority to provide documentation for award in the amount of $240,000 over a 36-month period, to allocate to expansion of transportation services for seniors and individuals with disabilities.
SECTION 2. The City Manager of the City of Seal Beach, or designee, is directed to execute, in the name of the City of Seal Beach, all necessary applications, contracts and agreements and amendments thereto to implement and carry out the grant application package attached hereto and any project approved through approval of the grant application.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular meeting held on the 14th day of September 2026 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Lisa Landau, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution XXXX on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of September 2026.
Gloria D. Harper, City Clerk
OCTA Human Services Transportation Coordinated Plan
November 2024
27 Exclusive Groups Population
In poverty, age 65 or older, and a veteran 1,949
With a disability, age 65 or older, and a veteran 22,845 In poverty, with a disability, age 65 or older, and a
veteran 1,351
Total unique individuals with one or more focus
characteristics 911,154
Total population (all PUMAs in OC) 3,182,954
*All data variables were from ACS 5-Year Estimates PUMS (2021) Older Adults
As shown in Figure 2, the population of people ages 65 and older has been steadily increasing in Orange County since 2018. In 2018, there were 440,488 older adults, which has increased to 488,359 in 2022, or approximately 15.5% of Orange County’s population. The growth from 2018 to 2022 shows an increase of nearly 11%. The percent of individuals ages 65 and older throughout Orange County has remained approximately 0.3-0.5% higher than that of the state of California.
Figure 2. Orange County Older Adult Population Compared to California, 2018- 2022
OCTA Human Services Transportation Coordinated Plan
November 2024
28 Older adults live in higher densities in certain areas of Orange County, including areas with large senior living housing developments. The highest density senior populations tend to be located south of I-5 and north of Highway 55, with one exception being the Laguna Woods and Laguna Hills areas where several large assisted living facilities are located.
Figure 3. Senior (65+) Population Density by Census Tract (2022 ACS 5-Year Estimates)
OCTA Human Services Transportation Coordinated Plan
November 2024
32 Figure 7. People with Disabilities Population Density by Census Tract (2022 ACS 5-Year Estimates)
OCTA Human Services Transportation Coordinated Plan
November 2024
34 Figure 9. Veteran Population Density by Census Tract (2022 ACS 5-Year Estimates)
Agenda Item O
AGENDA STAFF REPORT
DATE: September 14, 2026
TO: Honorable Mayor and City Council
THRU: Patrick Gallegos, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Consideration to Approve the California State Water Resources Control Board Construction Installation Sale
Agreement No. D2502060 to Finance up to $3,765,411 for
the LCWA Watermain Lining – Trenchless Technology
Improvements, CIP WT2103
________________________________________________________________ SUMMARY OF REQUEST:
That the City Council adopt Resolution 7819:
1. Approving the California State Water Resources Control Board Agreement No. D2502060 in the amount of $3,175,000 for the LCWA Watermain Lining – Trenchless Technology Improvements, CIP WT2103; and,
2. Approving an increase to the loan amount up to $3,765,411, if approved by the State Water Board; and,
3. Authorizing the City Manager, or designee, to execute the Agreement; accept, receive, and utilize the Agreement funding on behalf of the City; and submit a Final Budget Approval to the Water Board requesting an increase in the total financing amount to $3,765,411.
BACKGROUND AND ANALYSIS:
The 18” diameter LCWA Watermain serves as one of the City's primary transmission facilities and provides critical redundancy for conveying potable water to Old Town and other portions of the service area. Failure of this pipeline could significantly impact the City's ability to maintain reliable water service, fire flow capacity, and operational flexibility during emergency conditions. Given the age and condition of the pipeline, proactive rehabilitation is more cost-effective than continued emergency repairs and reduces the risk of service disruptions.
Given the condition of the watermain infrastructure and the frequency of main breaks within this area, the LCWA Watermain Lining – Trenchless Technology Improvements, CIP WT2103 (Project), was programmed into the Capital
Improvement Program (CIP) to extend the pipeline’s serviceable life. Relining of the existing watermain was evaluated as the most cost-effective approach for extending the useful life of the facility while minimizing environmental impacts, construction duration, and overall project costs compared to full replacement. With the construction contract now awarded, the total construction-phase budget, including construction support and contingency, is estimated at $3,765,411.
The Drinking Water State Revolving Fund (DWSRF) program is administered by the State Water Resources Control Board (Water Board) and provides favorable financial assistance for eligible drinking-water infrastructure projects. The program is intended to support projects that protect public health, improve water-system reliability, and assist water agencies in financing necessary capital improvements.
The Water Board approved the Project for low-interest DWSRF financing.
Construction Installment Sale Agreement No. D2502060 (Agreement) includes the following principal terms:
Financing Term Provisions
Initial Amount $3,175,000
Interest Rate 2.1%
Repayment Term 30 years
Repayment Source Water Enterprise Fund revenues
Disbursement Method Reimbursement of eligible project expenditures Repayment
Annual interest payments during construction and until
one year after project completion; principal and interest payments begin one year after completion.
Prepayment Prepayment requires prior written consent from the Water Board.
Administrative Service
Charge/Drinking Water
Small Community
Emergency Grant Fund
Charge
If applicable, charged in lieu of, and not in addition to, the stated interest obligation, as provided in the
Agreement.
The financing is reimbursement-based. The City will initially pay eligible project invoices and then submit reimbursement requests to the Water Board. Staff will coordinate project expenditures and reimbursement requests to maintain sufficient Water Enterprise Fund cash flow throughout construction.
The proposed DWSRF financing would:
• Provide a below-market interest rate compared with conventional municipal debt;
• Spread project costs over the useful life of the rehabilitated pipeline; • Reduce the immediate use of Water Enterprise Fund reserves;
• Preserve cash for operations, emergencies, and other planned capital improvements;
• Support the City's long-term water-system reliability and capital improvement objectives.
The financing obligation will be repaid solely from Water Enterprise Fund revenues. No General Fund revenues will be pledged for repayment of the loan.
Further, the Water Enterprise Fund will pay for the project and all requirements of the loan agreement (i.e., O&M requirements, monitoring and reporting requirements, etc.) the Water Board has indicated that it expects general funds to be available (but not obligated) to pay for obligations of the agreement unrelated to the loan’s repayment.
The Agreement reflects an initial financing amount of $3,175,000 based on the preliminary Project estimates. Following award of the construction contract, the estimated construction-phase budget increased to $3,765,411. Staff therefore recommends authorizing the City Manager, or designee, to submit a Final Budget Approval (FBA) request to increase the available financing by $590,411, for a total amount of $3,765,411.
ENVIRONMENTAL IMPACT:
This item is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the state CEQA Guidelines because it can be seen with certainty that the approval of a financing agreement with Water Board will not have a significant effect on the environment. Further, this agreement qualifies for the exemption applicable to government financing mechanisms.
The Project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15301 Class 1 Subsection (b) of the CEQA Guidelines because this project is an alteration of a publicly owned utility facility involving negligible expansion of existing use.
LEGAL ANALYSIS:
The City Attorney and the City’s Financial Advisor have reviewed the Agreement as to form.
The City Attorney has reviewed and approved the resolution as to form.
FINANCIAL IMPACT:
Subject to Water Board approval of the FBA request, DWSRF financing of up to $3,765,411 would be available for eligible Project costs.
The financing is structured as a reimbursement program. Sufficient funds are included in the Fiscal Year 2026-27 Water Capital Improvement Program to cash-
flow project expenditures before reimbursement is received from the Water Board.
No additional City appropriations are being requested under this action.
Actual debt service will be based on the final amount disbursed and will be incorporated into future Water Enterprise Fund operating budgets in accordance with the repayment schedule. There is no anticipated impact to the General Fund.
RECOMMENDATION:
That the City Council adopt Resolution 7819:
1. Approving the California State Water Resources Control Board Agreement No. D2502060 in the amount of $3,175,000 for the LCWA Watermain Lining – Trenchless Technology Improvements, CIP WT2103; and,
2. Approving an increase to the loan amount up to $3,765,411, if approved by the State Water Board; and,
3. Authorizing the City Manager, or designee, to execute the Agreement; accept, receive, and utilize the Agreement funding on behalf of the City; and submit a Final Budget Approval to the Water Board requesting an increase in the total financing amount to $3,765,411.
SUBMITTED BY: NOTED AND APPROVED:
Iris Lee Patrick Gallegos
Iris Lee, Director of Public Works Patrick Gallegos, City Manager ATTACHMENTS:
A. Resolution 7819
B. Water Board Agreement No. D2502060
RESOLUTION 7819
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
APPROVING AND AUTHORIZING THE CITY MANAGER, OR
DESIGNEE, TO ENTER INTO A CONTRUCTION INSTALLMENT
SALE AGREEMENT WITH THE STATE WATER RESOURCES
CONTROL BOARD TO FINANCE THE LCWA WATERMAIN
LINING – TRENCHLESS TECHNOLOGY IMPROVEMENTS
PROJECT, CIP WT2103
WHEREAS, the City of Seal Beach desires to rehabilitate and upgrade certain portions of the City’s water pipeline infrastructure; and, WHEREAS, the LCWA Watermain serves as one of the City’s primary water transmission facilities and provides critical redundancy for conveying potable water to Old Town and other portions of the City’s water service area; and, WHEREAS, the LCWA Watermain is prone to watermain breaks due to its age and it is more cost effective to rehabilitate the LCWA Watermain than to continue to rely on emergency repairs to ensure the LCWA Watermain maintains reliable water service; and,
WHEREAS, on March 18, 2026, the City solicited bids for a LCWA Watermain infrastructure repair project, the LCWA Watermain Lining – Trenchless Technology Improvements, CIP WT2103 (Project); and,
WHEREAS, on June 22, 2026, through Resolution 7801, the City awarded a Public Works Agreement to T.E. Roberts, Inc. for the Project and determined the Project was exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 Class 1, Subsection (b) because the Project is an alteration of a publicly owned utility facility involving negligible expansion of existing use; and,
WHEREAS, the California State Water Resources Control Board (Water Board) has created the Drinking Water State Revolving Fund (DWSRF) to finance and provide loans for infrastructure improvements to support drinking water systems and maintain compliance with Safe Drinking Water Act requirements; and, WHEREAS, public agencies interested in receiving funding through the DWSRF program for drinking water systems infrastructure improvements may award construction contracts prior to executing any finalized financing agreement with the Water Board; and,
WHEREAS, on June 27, 2022, the City Council passed Resolution 7307 to authorize City staff to submit an application to the Water Board for a DWSRF loan to provide funding for the Project; and,
WHEREAS, City staff and the Water Board have finalized a Construction Installment Sale Agreement, Agreement No. D2502060 (Agreement), included as Exhibit A to this Resolution, to provide financing for the Project in the form of a loan in the amount of $3,175,000; and,
WHEREAS, the City desires to increase the loan amount to $3,765,411, subject to approval by the State Water Board; and,
WHEREAS, the City desires to authorize the City Manager to enter into the Agreement with the Water Board on behalf of the City and to take any additional actions as necessary to carry out the requirements of the Agreement.
NOW, THEREFORE, the Seal Beach City Council does resolve, declare, determine, and order as follows:
Section 1. The City Council finds that all recitals set forth above are true and correct, and incorporates them herein by this reference.
Section 2. Approves the Installment Sale Agreement with the Water Board, as set forth in Exhibit A, attached hereto, to provide financing for the LCWA Watermain Lining – Trenchless Technology
Improvements, CIP WT2103, in the form of a loan in the amount of $3,175,000.
Section 3. Approves an adjustment to loan amount if approved by the State Water Board for a total amount of up to $3,765,411, and authorizes revisions to the Construction Installment Sale Agreement to incorporate such adjusted loan amount.
Section 4. Authorizes the City Manager to execute the Agreement, Exhibit A, with the State Water Board on behalf of the City and any amendments or extensions thereafter.
Section 5. Authorizes the City Manager, or designee, to take all actions necessary to carry out the requirements of the Agreement.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 14
th day of September 2026 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Lisa Landau, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7819 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 14th day of September 2026.
Gloria D. Harper, City Clerk
Exhibit A
Construction Installment Sale Agreement
DRINKING WATER
CITY OF SEAL BEACH
AND
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD
CONSTRUCTION
INSTALLMENT SALE AGREEMENT
PROJECT NO. 3010041-001C
LCWA WATERMAIN LINING PROJECT
AGREEMENT NO. D2502060
PROJECT FUNDING AMOUNT: $3,175,000
ESTIMATED REASONABLE PROJECT COST: $3,175,000
ELIGIBLE WORK START DATE: AUGUST 16, 2022
ELIGIBLE CONSTRUCTION START DATE: DATE OF EXECUTION OF THIS AGREEMENT COMPLETION OF CONSTRUCTION DATE: DECEMBER 31, 2028
FINAL REIMBURSEMENT REQUEST DATE: JUNE 30, 2029
FINAL PAYMENT DATE: DECEMBER 31, 2058
RECORDS RETENTION END DATE: DECEMBER 31, 2064
THIS PAGE INTENTIONALLY LEFT BLANK
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Page i of iv
i
AGREEMENT ............................................................................................................................................... 1
1. AUTHORITY.......................................................................................................................................1
2. INTENTION........................................................................................................................................1
3. AGREEMENT, TERM, DOCUMENTS INCORPORATED BY REFERENCE. ................................... 1
4. PARTY CONTACTS ........................................................................................................................... 3
5. DEFINITIONS. .................................................................................................................................... 3 EXHIBIT A – SCOPE OF WORK ................................................................................................................ 10 A.1. PROJECT DESCRIPTION, USEFUL LIFE, AND SCOPE OF WORK. ........................................ 10 A.2. STANDARD PROJECT REQUIREMENTS. ..................................................................................... 10 A.2.1 Acknowledgements. ................................................................................................................................. 10 A.2.2 Reports ..................................................................................................................................................... 10 A.2.2.1 Progress Reports. ............................................................................................................................. 10 A.2.2.2 Project Completion Report. ............................................................................................................. 11 A.2.2.3 As Needed Reports. ......................................................................................................................... 11 A.2.2.5 DBE Good Faith Efforts and Reports for SRF Projects. .................................................................. 11 A.2.3 Signage. ................................................................................................................................................... 11 A.2.4 Commencement of Operations. ............................................................................................................... 12 A.3 DATES & DELIVERABLES. ............................................................................................................. 12 A.4 SCHEDULE. ..................................................................................................................................... 12 EXHIBIT B – FUNDING TERMS ................................................................................................................. 14 B.1. FUNDING AMOUNTS AND REIMBURSEMENTS ...................................................................... 14 B.1.1 Funding Contingency and Other Sources. ............................................................................................... 14 B.1.2 Estimated Reasonable Cost......................................................................................................................14 B.1.3 Project Funding Amount. ......................................................................................................................... 14 B. 1.5 Budget Costs. ........................................................................................................................................... 14 B.1.6 Contingent Disbursement. ....................................................................................................................... 15 B.1.7 Reimbursement Procedure. ...................................................................................................................... 15 B.1.8 Withholding of Disbursements. ............................................................................................................... 16 B.1.9 Fraud and Misuse of Public Funds; Enforcement. ................................................................................... 17 B.2 RECIPIENT’S PAYMENT OBLIGATION, PLEDGE, AND RESERVE ............................................. 17 B.2.1 Project Costs. ........................................................................................................................................... 17 B.2.2 Estimated Principal Payment Due. .......................................................................................................... 18 B.2.3 Interest Rate and In-Lieu of Interest Charges. ......................................................................................... 18 B.2.4 [Reserved.] ............................................................................................................................................... 18 B.2.5 Obligation Absolute. ................................................................................................................................ 18 B.2.6 Payment Timing. ...................................................................................................................................... 18 B.2.7 Pledged Revenues. ................................................................................................................................... 19 B.2.7.1 Establishment of Enterprise Fund and Reserve Fund. ......................................................................... 19 B.2.7.2 Pledge of Net Revenues, Enterprise Fund, and Reserve Fund. ............................................................ 19 B.2.7.3 Application and Purpose of the Enterprise Fund. ................................................................................ 19 City of Seal Beach
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B.2.8 No Prepayment. .......................................................................................................................................20 B.2.9 Reserve Fund. .......................................................................................................................................... 20 B.3 RATES, FEES AND CHARGES. .....................................................................................................20 B.4 ADDITIONAL DEBT .........................................................................................................................20 B.5 NO LIENS. ........................................................................................................................................ 21 EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS .................................................. 22 C.1 REPRESENTATIONS & WARRANTIES. ..................................................................................... 22 C.1.1 Application and General Recipient Commitments. ................................................................................. 22 C.1.2 Authorization and Validity. ..................................................................................................................... 22 C.1.3 No Violations. .......................................................................................................................................... 22 C.1.4 No Litigation. ........................................................................................................................................... 22 C.1.5 Property Rights and Water Rights. .......................................................................................................... 23 C.1.6 Solvency and Insurance. .......................................................................................................................... 23 C.1.7 Legal Status and Eligibility. ..................................................................................................................... 23 C.1.8 Financial Statements and Continuing Disclosure. ................................................................................... 23 C.1.9 System Obligations .................................................................................................................................. 23 C.1.10 No Other Material Obligations. ............................................................................................................... 23 C.1.11 Compliance with State Water Board Funding Agreements. .................................................................... 23 C.2 DEFAULTS AND REMEDIES ...................................................................................................... 23 C.2.1 Return of Funds; Acceleration; and Additional Payments. ...................................................................... 24 C.2.3 Administrative remedies. ......................................................................................................................... 24 C.2.4 Judicial remedies. .................................................................................................................................... 24 C.2.5 Termination.............................................................................................................................................. 24 C.2.6 Damages for Breach of Tax-Exempt Status. ............................................................................................ 25 C.2.7 Damages for Breach of Federal Conditions. ............................................................................................ 25 C.2.8 Remedies and Limitations. ...................................................................................................................... 25 C.2.9 Non-Waiver. ............................................................................................................................................ 25 C.2.10 Status Quo. ............................................................................................................................................... 25 C.3 STANDARD CONDITIONS .................................................................................................................. 25 C.3.1 Access, Inspection, and Public Records...................................................................................................25 C.3.2 Accounting and Auditing Standards; Financial Management Systems; Records Retention. ................... 26 C.3.3 Amendment. ............................................................................................................................................ 27 C.3.4 Assignability. ........................................................................................................................................... 27 C.3.5 Audit. ....................................................................................................................................................... 27 C.3.6 Bonding. .................................................................................................................................................. 27 C.3.7 Competitive Bidding ................................................................................................................................ 28 C.3.8 Compliance with Applicable Laws, Rules, and Requirements. ............................................................... 28 C.3.9 Computer Software. ................................................................................................................................. 28 C.3.10 Conflict of Interest. .................................................................................................................................. 28 C.3.11 Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project .................. 28 C.3.12 Data Management. ................................................................................................................................... 28 C.3.13 Disputes. .................................................................................................................................................. 28 C.3.15 Environmental Clearance. ........................................................................................................................ 29 C.3.16 Governing Law. ....................................................................................................................................... 29 C.3.17 Income Restrictions. ................................................................................................................................ 29 C.3.18 Indemnification and State Reviews. ........................................................................................................ 29 C.3.19 Independent Actor. .................................................................................................................................. 30 C.3.20 Integration. ............................................................................................................................................... 30 City of Seal Beach
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C.3.21 Leveraging Covenants. ............................................................................................................................30 C.3.22 No Discrimination. .................................................................................................................................. 31 C.3.23 No Third Party Rights. ............................................................................................................................. 31 C.3.24 No Obligation of the State. ...................................................................................................................... 32 C.3.25 Notice. ...................................................................................................................................................... 32 C.3.26 Operation and Maintenance; Insurance....................................................................................................34 C.3.27 Permits, Subcontracting, and Remedies...................................................................................................35 C.3.28 Professionals. ........................................................................................................................................... 35 C.3.29 Prevailing Wages. .................................................................................................................................... 35 C.3.30 Public Funding. ........................................................................................................................................ 35 C.3.31 Recipient’s Responsibility for Work. ...................................................................................................... 35 C.3.32 Related Litigation. ................................................................................................................................... 36 C.3.33 Rights in Data. .........................................................................................................................................36 C.3.34 State Water Board Action; Costs and Attorney Fees. .............................................................................. 36 C.3.35 Timeliness. ............................................................................................................................................... 36 C.3.36 Unenforceable Provision. ......................................................................................................................... 36 C.3.37 Venue. ...................................................................................................................................................... 36 C.3.38 Waiver and Rights of the State Water Board. .......................................................................................... 36 C.4 MISCELLANEOUS STATE AND FEDERAL REQUIREMENTS .......................................................... 37 C.4.1 [Reserved.] ............................................................................................................................................... 37 C.4.2 State Cross-Cutters. ................................................................................................................................. 37 C.4.3 Federal Requirements and Cross-Cutters for SRF Funding. .................................................................... 38 EXHIBIT D – SPECIAL CONDITIONS ........................................................................................................ 43 EXHIBIT E – PAYMENT SCHEDULE ......................................................................................................... 44 EXHIBIT F – TAX CERTIFICATE ............................................................................................................... 45 F.1 Purpose. ........................................................................................................................................... 45 F.2 Tax Covenant. .................................................................................................................................. 45 F.3 Governmental Unit. .......................................................................................................................... 45 F.4 Financing of a Capital Project. ......................................................................................................... 45 F.5 Ownership and Operation of Project. ............................................................................................... 45 F.6 Temporary Period. ............................................................................................................................ 45 F.7 Working Capital. ............................................................................................................................... 46 F.8 Expenditure of Proceeds. ................................................................................................................. 46 F.9 Private Use and Private Payments. ................................................................................................. 46 F.10 No Sale, Lease or Private Operation of the Project. .................................................................... 46 F.11 No Disproportionate or Unrelated Use. ........................................................................................ 47 F.12 Management and Service Contracts. ........................................................................................... 47 City of Seal Beach
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F.13 No Disposition of Financed Property. ........................................................................................... 47 F.14 Useful Life of Project. ................................................................................................................... 47 F.15 Payments......................................................................................................................................47 F.16 No Other Replacement Proceeds.................................................................................................48 F.17 No Sinking or Pledged Fund. ........................................................................................................ 48 F.18 Reserve Amount. .......................................................................................................................... 48 F.19 Reimbursement Resolution. ......................................................................................................... 48 F.20 Reimbursement Expenditures. ..................................................................................................... 48 F.21 Change in Use of the Project. ....................................................................................................... 48 F.22 Rebate Obligations. ...................................................................................................................... 49 F.23 No Federal Guarantee. ................................................................................................................. 49 F.24 Amendments. ................................................................................................................................ 49 F.25 Reasonable Expectations. ............................................................................................................ 49 F.26 Assignment. .................................................................................................................................. 49 City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
AGREEMENT
1. AUTHORITY.
(a) The State Water Resources Control Board (State Water Board) is authorized, and implements its authority, to provide financial assistance under this Agreement pursuant to Section 116760 et seq. of the Health and Safety Code, and Resolution Nos. 2025-0014 and 2024-0029. (b) The Recipient is authorized to enter into this Installment Sale Agreement (Agreement) pursuant to Resolution No. 7307.
2. INTENTION.
(a) The Recipient desires to receive financial assistance for and undertake work required for the drinking water construction Project according to the terms and conditions set forth in this Agreement. (b) The State Water Board proposes to assist in providing financial assistance for eligible costs of the Project in the amount set forth in Exhibit B, according to the terms and conditions set forth in this Agreement, with the expectation that the Recipient shall repay all of the financial assistance to the State Water Board.
(c) The Recipient intends to evidence its obligation to submit Payments to the State Water Board and secure its obligation with Net Revenues of its water enterprise, as set forth in Exhibit B, according to the terms and conditions set forth in this Agreement.
(d) The Recipient intends to certify and evidence its compliance with the Tax Covenants set forth in Exhibit F.
3. AGREEMENT, TERM, DOCUMENTS INCORPORATED BY REFERENCE.
In consideration of the mutual representations, covenants and agreements herein set forth, the State Water Board and the Recipient, each binding itself, its successors and assigns, do mutually promise, covenant, and agree to the terms, provisions, and conditions of this Agreement. (a) The Recipient hereby sells to the State Water Board and the State Water Board hereby purchases from the Recipient the Project. Simultaneously therewith, the Recipient hereby purchases from the State Water Board, and the State Water Board hereby sells to the Recipient, the Project in accordance with the provisions of this Agreement. All right, title, and interest in the Project shall immediately vest in the Recipient on the date of execution and delivery of this Agreement by both parties without further action on the part of the Recipient or the State Water Board. (b) Subject to the satisfaction of all conditions precedent to this Agreement, this Agreement shall become effective upon the signature of both the Recipient and the State Water Board. Conditions precedent are not limited to the following:
i. The Recipient must deliver to the Division a resolution authorizing this Agreement. ii. The Recipient must deliver an opinion of general counsel satisfactory to the State Water Board’s counsel dated on or after the date that the Recipient signs this Agreement. (c) Upon execution, the term of the Agreement shall begin on the Eligible Work Start Date and extend through the Final Payment Date.
(d) This Agreement includes the following exhibits and attachments thereto:
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
i. EXHIBIT A – SCOPE OF WORK
ii. EXHIBIT B – FUNDING TERMS
iii. EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS iv. EXHIBIT D – SPECIAL CONDITIONS
v. EXHIBIT E – PAYMENT SCHEDULE
vi. EXHIBIT F – TAX CERTIFICATE
(e) This Agreement includes the following documents incorporated by reference, as well as any documents incorporated by reference in Exhibit D:
i. the Final Plans & Specifications, dated March 17, 2026, which are the basis for the construction contract to be awarded by the Recipient;
ii. the Drinking Water System Permit No. 05-08-03P-016, and any amendments thereto; iii. the Recipient’s Reimbursement Resolution No. 7308 dated June 27, 2022; iv. the Recipient’s Tax Questionnaire dated August 16, 2022. v. the federal Davis-Bacon requirements. By accepting this Agreement, the Recipient acknowledges and agrees to the terms and conditions provided in the DBRA Requirements for EPA Subrecipients | US EPA (https://www.epa.gov/grants/dbrarequirements-epa-subrecipients). The Recipient shall ensure that the following language is included in all contracts and subcontracts funded under this Agreement:
By accepting this contract, the contractor acknowledges and agrees to the terms and conditions provided in the Contract Provisions for Davis-Bacon and Related Acts | US EPA (https://www.epa.gov/grants/contract-provisions-davis-bacon-andrelated-acts). (For reference, see also https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/davisbacon.ht ml.)
(f) This Agreement, and any amendments hereto, may be executed and delivered in any number of counterparts, each of which when delivered shall be deemed to be an original, but such counterparts shall together constitute one document. The parties may sign this Agreement, and any amendments hereto, either by an electronic signature using a method approved by the State Water Board or by a physical, handwritten signature. The parties mutually agree that an electronic signature using a method approved by the State Water Board is the same as a physical, handwritten signature for the purposes of validity, enforceability, and admissibility.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
4. PARTY CONTACTS
State Water Board City of Seal Beach
Section: Division of Financial Assistance
Name: Tatiana Guillen, Project Manager Name: Patrick Gallegos, City Manager
Address: 1001 I Street, 16th Floor Address: 211 8th Street City, State,
Zip:
Sacramento, CA 95814 City, State,
Zip:
Seal Beach, CA 90740
Phone: (916) 449-5295 Phone: (562) 431-2527 x1308
Email: [email protected]
[email protected]
Email: [email protected]
The Recipient may change its contact upon written notice to the Division, which notice shall be accompanied by authorization from the Recipient’s Authorized Representative. The State Water Board will notify the Recipient of any changes to its contact.
While the foregoing are contacts for day-to-day communications regarding Project work, the Recipient shall provide official communications and events of Notice as set forth in Exhibit C to the Division’s Deputy Director.
5. DEFINITIONS.
Unless otherwise specified, each capitalized term used in this Agreement has the following meaning:
“Additional Payments" means the reasonable extraordinary fees and expenses of the State Water Board, and of any assignee of the State Water Board's right, title, and interest in and to this Agreement, in connection with this Agreement, including all expenses and fees of accountants, trustees, staff, contractors, consultants, costs, insurance premiums and all other extraordinary costs reasonably incurred by the State Water Board or assignee of the State Water Board. "Allowance" means an amount based on a percentage of the accepted bid for an eligible project to help defray the planning, design, and construction engineering and administration costs of the Project. “Agreement” means this agreement, including all exhibits and attachments hereto. "Authorized Representative" means the duly appointed representative of the Recipient as set forth in the certified original of the Recipient’s authorizing resolution that designates the authorized representative by title.
"Bank" means the California Infrastructure and Economic Development Bank. “Bond Funded Portion of the Project Funds” means any portion of the Project Funds which was or will be funded with Bond Proceeds.
“Bond Proceeds” means original proceeds, investment proceeds, and replacement proceeds of Bonds. "Bonds" means any series of bonds issued by the Bank, the interest on which is excluded from gross income for federal tax purposes, all or a portion of the proceeds of which have been, are, or will be applied by the State Water Board to fund all or any portion of the Project Costs or that are secured in whole or in part by Payments paid hereunder.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
“Charge In Lieu of Interest” means any fee or charge in lieu of some or all of, but not to exceed, the interest that would otherwise be owed under this Agreement, as set forth in Exhibit E. "Code" as used in Exhibit F of this Agreement means the Internal Revenue Code of 1986, as amended, and any successor provisions and the regulations of the U.S. Department of the Treasury promulgated thereunder.
"Completion of Construction" means the date, as determined by the Division after consultation with the Recipient, that the work of building and erection of the Project is substantially complete, and is identified in Exhibit A of this Agreement.
“Cover Page” means the front page of this Agreement.
“Days” means calendar days unless otherwise expressly indicated. “Debt Service” means, as of any date, with respect to outstanding System Obligations and, in the case of the additional debt tests in Exhibit B of this Agreement, any System Obligations that are proposed to be outstanding, the aggregate amount of principal and interest scheduled to become due (either at maturity or by mandatory redemption), together with any Charge In Lieu of Interest on this Obligation or other System Obligations to the State Water Board, calculated with the following assumptions:
a. Principal payments (unless a different subdivision of this definition applies for purposes of determining principal maturities or amortization) are made in accordance with any amortization schedule published for such principal, including any minimum sinking fund payments; b. Interest on a variable rate System Obligation that is not subject to a swap agreement and that is issued or will be issued as a tax-exempt obligation under federal law, is the average of the SIFMA Municipal Swap Index, or its successor index, during the 24 months preceding the date of such calculation;
c. Interest on a variable rate System Obligation that is not subject to a swap agreement and that is issued or will be issued as a taxable obligation under federal law, is the average of SOFR, or its successor index, during the 24 months preceding the date of such calculation; d. Interest on a variable rate System Obligation that is subject to a swap agreement is the fixed swap rate or cap strike rate, as appropriate, if the variable rate has been swapped to a fixed rate or capped pursuant to an interest rate cap agreement or similar agreement; e. Interest on a fixed rate System Obligation that is subject to a swap agreement such that all or a portion of the interest has been swapped to a variable rate shall be treated as variable rate debt under subdivisions (b) or (c) of this definition of Debt Service; f. Payments of principal and interest on a System Obligation are excluded from the calculation of Debt Service to the extent such payments are to be paid from amounts then currently on deposit with a trustee or other fiduciary and restricted for the defeasance of such System Obligations; g. If 25% or more of the principal of a System Obligation is not due until its final stated maturity, then principal and interest on that System Obligation may be projected to amortize over the lesser of 30 years or the Useful Life of the financed asset, and interest may be calculated according to subdivisions (b)-(e) of this definition of Debt Service, as appropriate.
“Deputy Director” means the Deputy Director of the Division.
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Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
“District Office” means District Office of the Division of Drinking Water of the State Water Board. "Division" means the Division of Financial Assistance of the State Water Board or any other segment of the State Water Board authorized to administer this Agreement. “Division of Drinking Water” means the Division of Drinking Water of the State Water Board. “Eligible Construction Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which construction costs may be incurred and eligible for reimbursement hereunder.
“Eligible Work Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which any non-construction costs may be incurred and eligible for reimbursement hereunder.
“Enterprise Fund” means the enterprise fund of the Recipient in which Revenues are deposited. “Event of Default” means the occurrence of any of the following events:
a) Failure by the Recipient to make any payment required to be paid pursuant to this Agreement, including Payments;
b) A representation or warranty made by or on behalf of the Recipient in this Agreement or in any document furnished by or on behalf of the Recipient to the State Water Board pursuant to this Agreement shall prove to have been inaccurate, misleading or incomplete in any material respect; c) A material adverse change in the condition of the Recipient, the Revenues, or the System, which the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement.
d) Failure by the Recipient to comply with the additional debt test or reserve fund requirement, if any, in Exhibit B or Exhibit D of this Agreement;
e) Failure to operate the System or the Project without the Division’s approval; f) Failure by the Recipient to observe and perform any covenant, condition, or provision in this Agreement, which failure shall continue for a period of time, to be determined by the Division; g) The occurrence of a material breach or event of default under any System Obligation or Material Obligation that results in the acceleration of principal or interest or otherwise requires immediate prepayment, repurchase or redemption;
h) Initiation of proceedings seeking arrangement, reorganization, or any other relief under any applicable bankruptcy, insolvency, or other similar law; the appointment of or taking possession of the Recipient’s property by a receiver, liquidator, assignee, trustee, custodian, conservator, or similar official; the Recipient’s entering into a general assignment for the benefit of creditors; the initiation of resolutions or proceedings to terminate the Recipient’s existence, or any action in furtherance of any of the foregoing; i) A determination pursuant to Gov. Code section 11137 that the Recipient has violated any provision in Article 9.5 of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code; or j) Loss of the Recipient’s rights, licenses, permits, or privileges necessary for the operation of the System or the Project, or the occurrence of any material restraint on the Recipient’s enterprise by a government agency or court order.
“Final Payment Date” is the date by which all principal and accrued interest due under this Agreement is to be paid in full to the State Water Board and is specified on the Cover Page of this Agreement. “Final Reimbursement Request Date” means the date set forth as such on the Cover Page of this Agreement, after which date, no further Project Funds disbursements may be requested.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
"Fiscal Year" means the period of twelve (12) months terminating on June 30 of any year, or any other annual period selected and designated by the Recipient as its Fiscal Year in accordance with applicable law.
"Force Account" means the use of the Recipient's own employees, equipment, or resources for the Project.
“GAAP” means generally accepted accounting principles, the uniform accounting and reporting procedures set forth in publications of the American Institute of Certified Public Accountants or its successor, or by any other generally accepted authority on such procedures, and includes, as applicable, the standards set forth by the Governmental Accounting Standards Board or its successor, or the Uniform System of Accounts, as adopted by the California Public Utilities Commission for water utilities. "Initiation of Construction" means the date that notice to proceed with work is issued for the Project, or, if notice to proceed is not required, the date of commencement of building and erection of the Project. “Listed Event” means, so long as the Recipient has outstanding any System Obligation subject to Rule 15c2-12, any of the events required to be reported with respect to such System Obligation pursuant to Rule 15c2-12(b)(5).
“Material Obligation” means an obligation of the Recipient that is material to this transaction, including System Obligations.
“Maximum Annual Debt Service” means the maximum amount of Debt Service due on System Obligations in a Fiscal Year during the period commencing with the Fiscal Year for which such calculation is made and within the next five years in which Debt Service for any System Obligations will become due. "Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations and Maintenance Costs for such Fiscal Year.
"Obligation" means the obligation of the Recipient to make Payments (including Additional Payments) as provided herein, as evidenced by the execution of this Agreement, proceeds of such obligations being used to fund the Project as specified in the Project Description in Exhibit A and Exhibit B and in the documents thereby incorporated by reference.
"Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the Recipient for maintaining and operating the System, determined in accordance with GAAP, including all reasonable expenses of management and repair and all other expenses necessary to maintain and preserve the System in good repair and working order, and including all reasonable and necessary administrative costs of the Recipient that are charged directly or apportioned to the operation of the System, such as salaries and wages of employees, overhead, taxes (if any), the cost of permits, licenses, and charges to operate the System and insurance premiums; but excluding, in all cases depreciation, replacement, and obsolescence charges or reserves therefor and amortization of intangibles. “Parity Obligation” means a debt obligation of the Recipient on parity with this Obligation The Recipient’s Parity Obligations are these:
2025 Loan, pursuant to Loan Agreement dated as of February 19, 2025, and amended as of July 22, 2026, by and between the City of Seal Beach and Orange County Water District. “Payment” means any payment due to the State Water Board from the Recipient pursuant to this Agreement.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
"Policy" means the State Water Board's “Policy for Implementing the Drinking Water State Revolving Fund,” as amended from time to time, including the Intended Use Plan in effect as of the execution date of this Agreement.
“Project” means the Project financed by this Agreement as described in Exhibits A and B and in the documents incorporated by reference herein.
"Project Completion" means the date, as determined by the Division after consultation with the Recipient, that operation of the Project is initiated or is capable of being initiated, whichever comes first. "Project Costs" means the incurred costs of the Recipient which are eligible for financial assistance under this Agreement, which are allowable costs as defined under the Policy, and which are reasonable, necessary and allocable by the Recipient to the Project under GAAP, and may include capitalized interest.
“Project Funds” means all moneys disbursed to the Recipient by the State Water Board for eligible Project Costs pursuant to this Agreement.
“Recipient” means the City of Seal Beach.
“Records Retention End Date” means the last date that the Recipient is obligated to maintain records and is set forth on the Cover Page of this Agreement.
“Regional Water Quality Control Board” or “Regional Water Board” means the appropriate Regional Water Quality Control Board.
“Reimbursement Resolution” means the Recipient’s reimbursement resolution identified and incorporated by reference in this Agreement.
“Reserve Fund” means the reserve fund required pursuant to Exhibit B of this Agreement. "Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the Recipient from the ownership or operation of the System, determined in accordance with GAAP, including (i) all rates, fees, and charges (including connection fees and charges) as received by the Recipient for the services of the System, and
(ii) all other income and revenue howsoever derived by the Recipient from the ownership or operation of the System or arising from the System, including all income from a. the deposit or investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on the Recipient’s behalf, b. any refundable deposits made to establish credit, and c. advances or contributions in aid of construction.
For the avoidance of doubt, refundable deposits and advances or contributions are not included in the definition of Revenues.
“Rule 15c2-12(b)(5)” means Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
“Senior Obligation” means a debt obligation of the Recipient that is senior to this Obligation. There are no Senior Obligations.
“SRF” means the Drinking Water State Revolving Fund.
“State” means State of California.
“State Water Board” means the State Water Resources Control Board. “Subordinate Obligation” means a debt obligation of the Recipient that is subordinate to this Obligation.
There are no Subordinate Obligations.
“System” means all drinking water collection, pumping, transport, treatment, storage, and delivery facilities, including land and easements thereof, owned by the Recipient, including the Project, and all other properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be a part of the System, together with all additions, betterments, extensions, or improvements to such facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed. “System Obligation” means any obligation of the Recipient payable from the Revenues, including but not limited to this Obligation, any Parity Obligation, any Subordinate Obligation, and such additional obligations as may hereafter be issued in accordance with the provisions of such obligations and this Agreement.
“Useful Life” means the economically useful life of the Project beginning at Completion of Construction and is set forth in Exhibit A.
“Year” means calendar year unless otherwise expressly indicated.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
SRF 24ix2025
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CITY OF SEAL BEACH
By:____________________________________
Name: Patrick Gallegos
Title: City Manager
Date:__________________________________
STATE WATER RESOURCES CONTROL BOARD:
By:____________________________________
Name: Michael Downey
Title: Acting Deputy Director
Division of Financial Assistance
Date:__________________________________
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit A
EXHIBIT A – SCOPE OF WORK
A.1. PROJECT DESCRIPTION, USEFUL LIFE, AND SCOPE OF WORK. (a) The Project is the project set forth on the Cover Page of this Agreement. (b) The Useful Life of this Project is at least 30 years. (c) Project Purpose and Description
The funding under this Agreement will be used to rehabilitate approximately 4,000 linear feet of leaking pipeline and upgrade existing valves to achieve compliance with California Waterworks Standards.
(d) Scope of Work.
The Recipient agrees to do the following:
The Recipient will rehabilitate approximately 4,000 linear feet of 18-inch diameter waterline. The Recipient will utilize trenchless Cured-In-Place Pipeline technology method, requiring the excavation of access pits for installation and upgrade of two existing valves.
A.2. STANDARD PROJECT REQUIREMENTS.
A.2.1 Acknowledgements.
The Recipient shall include the following acknowledgement in any document, written report, or brochure prepared in whole or in part pursuant to this Agreement:
“Funding for this project has been provided in full or in part through an agreement with the State Water Resources Control Board.
California’s Drinking Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds.
The contents of this document do not necessarily reflect the views and policies of the foregoing, nor does mention of trade names or commercial products constitute endorsement or recommendation for use.” A.2.2 Reports
A.2.2.1 Progress Reports.
(a) The Recipient must provide a progress report to the Division each quarter, beginning no later than 90 days after execution of this Agreement.
(b) The Recipient must provide a progress report with each reimbursement request. Failure to provide a complete and accurate progress report may result in the withholding of Project Funds, as set forth in Exhibit B.
(c) A progress report must contain the following information:
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit A
i. A summary of progress to date including a description of progress since the last report, percent construction complete, percent contractor invoiced, and percent schedule elapsed;
ii. A description of compliance with environmental requirements; iii. A listing of change orders including amount, description of work, and change in contract amount and schedule; and
iv. Any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions.
A.2.2.2 Project Completion Report.
(a) The Recipient must submit a Project Completion Report to the Division with a copy to the appropriate District Office on or before the due date established by the Division and the Recipient at the time of final project inspection. The Project Completion Report must include the following:
i. Description of the Project,
ii. Description of the water quality problem the Project sought to address, iii. Discussion of the Project’s likelihood of successfully addressing that water quality problem in the future, and
iv. Summary of compliance with applicable environmental conditions. (b) If the Recipient fails to submit a timely Project Completion Report, the State Water Board may stop processing pending or future applications for new financial assistance, withhold disbursements under this Agreement or other agreements, and begin administrative proceedings.
A.2.2.3 As Needed Reports.
The Recipient must provide expeditiously, during the term of this Agreement, any reports, data, and information reasonably required by the Division, including but not limited to material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the state or federal government.
A.2.2.4 [Reserved.]
A.2.2.5 [Reserved.]
A.2.3 Signage.
The Recipient shall place a sign at least four feet tall by eight feet wide made of ¾ inch thick exterior grade plywood or other approved material in a prominent location on the Project site and shall maintain the sign in good condition for the duration of the construction period. The sign must include the following disclosure statement and color logos (available from the Division):
a.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit A
b. “Funding for this $3,175,000 LCWA Watermain Lining Project has been provided in full or in part by the Drinking Water State Revolving Fund through an agreement with the State Water Resources Control Board. California’s Drinking Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds.”
c. The Project sign may include another agency's required promotional information so long as the above logos and disclosure statement are equally prominent on the sign. The sign shall be prepared in a professional manner.
A.2.4 Commencement of Operations.
Upon Completion of Construction of the Project, the Recipient must expeditiously initiate Project operations.
A.3 DATES & DELIVERABLES.
(a) Time is of the essence.
(b) The Recipient must expeditiously proceed with and complete construction of the Project. (c) The following dates are established as on the Cover Page of this Agreement:
i. Eligible Work Start Date
ii. Eligible Construction Start Date
iii. Completion of Construction Date
iv. Final Reimbursement Request Date
v. Records Retention End Date
vi. Final Payment Date
(d) The Recipient must award the prime construction contract timely. (e) The Recipient agrees to start construction no later than six (6) months after execution of this Agreement.
(f) The Recipient must deliver any request for extension of the Completion of Construction date no less than 90 days prior to the Completion of Construction date. (g) The undisbursed balance of this Agreement will be deobligated if the Recipient does not provide its final reimbursement request to the Division on or before the Final Reimbursement Request Date.
A.4 SCHEDULE.
Failure to provide items by the due dates indicated in the table below may constitute a material violation of this Agreement. The Project Manager may adjust the dates in the “Estimated Due Date” column of this table, but Critical Due Date adjustments will require an amendment to this Agreement. The Recipient must complete and submit all work in time to be approved by the Division prior to Project Completion. As applicable for specific submittals, the Recipient must plan adequate time to solicit, receive, and address comments prior to submitting the final submittal. The Recipient must submit the final reimbursement request prior to the Final Reimbursement Request Date set forth on the Cover Page.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit A
ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE
ESTIMATED
DUE DATE
SCOPE OF WORK
1 Completion of Construction December 31,
2028
N/A
REPORTING
1 Progress Reports N/A Quarterly
2 Final Project Inspection and Certification N/A Upon
completion of
the Project
3 Project Completion Report N/A June 30, 2029
4 As Needed Information and Reports N/A As Requested
by Division
BUDGET COSTS AND REIMBURSEMENT
1 First Reimbursement Request No later than 90
days from
Agreement
Execution Date
N/A
2 Final Budget Approval Package N/A August 31, 2026
3 Reimbursement Requests N/A Quarterly
4 Final Reimbursement Request June 30,2029 N/A
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
EXHIBIT B – FUNDING TERMS
B.1. FUNDING AMOUNTS AND REIMBURSEMENTS
B.1.1 Funding Contingency and Other Sources.
(a) If this Agreement’s funding for any fiscal year expires due to reversion or is reduced, substantially delayed, or deleted by the Budget Act, by Executive Order, or by order or action of the Department of Finance, the State Water Board has the option to either cancel this Agreement with no liability accruing to the State Water Board, or offer an amendment to the Recipient to reflect the reduced amount. (b) If funding for Project Costs is made available to the Recipient from sources other than this Agreement, the Recipient must notify the Division. The Recipient may retain such funding up to an amount which equals the Recipient's share of Project Costs. To the extent allowed by requirements of other funding sources, excess funding must be remitted to the State Water Board to be applied to Payments due hereunder, if any.
B.1.2 Estimated Reasonable Cost.
The estimated reasonable cost of the total Project, including associated planning and design costs is three million one hundred and seventy-five thousand dollars and no cents ($3,175,000).
B.1.3 Project Funding Amount.
Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds not to exceed the amount of the Project Funding Amount set forth on the Cover Page of this Agreement.
B.1.4 [Reserved.]
B. 1.5 Budget Costs.
(a) Estimated budget costs are contained in the Summary Project Cost Table below:
The Division’s Final Budget Approval and related Form 259 and Form 260 will document a more detailed budget of eligible Project Costs and Project funding amounts. Construction of the Project may be completed in phases with written approval of the Division. If construction proceeds under separate phases, the Recipient must submit a Final Budget Approval package and receive Final Budget Approval from the Division for each phase.
ITEM DESCRIPTION TOTAL
ESTIMATED COST
DWSRF FUNDING
AMOUNT
A Construction $2,700,000 $2,700,000
B Pre-Purchased Material / Equipment $0 $0
C Real Property or Easement Acquisition $0 $0
D Change Order Contingency $325,000 $325,000
E Force Account $0 $0
F Allowances (Soft Costs) $150,000 $150,000
TOTAL $3,175,000 $3,175,000
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
Upon written request by the Recipient, the Division may adjust the line items of the budget at the time of Division’s Final Budget Approval(s). Upon written request by the Recipient, the Division may also adjust the line items of the budget at the time of Recipient’s submittal of its final claim. Any line item adjustments to the budget that are due to a change in scope of work will require an Agreement amendment. The sum of adjusted line items in the budget approved through the Final Budget Approval process must not exceed the Project Funding Amount. The Division may also propose budget adjustments. (b) Under no circumstances may the sum of line items in the budget approved through the Final Budget Approval process exceed the Project Funding Amount. Any increase in the Project Funding Amount will require an Agreement amendment.
B.1.6 Contingent Disbursement.
(a) The State Water Board’s disbursement of funds hereunder is contingent on the Recipient’s compliance with the terms and conditions of this Agreement. (b) The State Water Board's obligation to disburse Project Funds is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason, including but not limited to failure of the federal or State government to appropriate funds necessary for disbursement of Project Funds, the State Water Board shall not be obligated to make any disbursements to the Recipient under this Agreement. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any disbursements under this Agreement.
Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for disbursement over any other entity. If any disbursements due the Recipient under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the State Water Board that such disbursement will be made to the Recipient when sufficient funds do become available, but this intention is not binding.
(c) Construction costs and disbursements are not available until after the Division has approved the final budget form submitted by the Recipient for the corresponding costs. (d) No costs incurred prior to the Eligible Work Start Date are eligible for reimbursement. (e) Construction costs incurred prior to the Eligible Construction Start Date are not eligible for reimbursement.
(f) Failure to proceed according to the timelines set forth in this Agreement may require the Recipient to repay to the State Water Board all disbursed Project Funds. (g) The Recipient agrees to ensure that its final reimbursement request is received by the Division no later than the Final Reimbursement Request Date. If the final reimbursement request is not received timely, the undisbursed balance of this Agreement will be deobligated. (h) The Recipient is not entitled to interest earned on undisbursed funds.
B.1.7 Reimbursement Procedure.
Except as may be otherwise provided in this Agreement, disbursement of Project Funds will be made as follows:
(a) Upon execution and delivery of this Agreement by both parties, the Recipient may request immediate reimbursement of any eligible incurred planning and design allowance costs through submission to the State Water Board of the Reimbursement Request Form 260 and Form 261, or any amendment thereto, duly completed and executed. To be eligible for reimbursement, Project City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
Costs, including any planning and design allowance costs, must have been incurred in compliance with all applicable requirements, including the state and federal cross-cutting requirements listed in Exhibit C.
(b) The Recipient must submit a reimbursement request for costs incurred prior to the date this Agreement is executed by the State Water Board no later than ninety (90) days after this Agreement is executed by the State Water Board. Late reimbursement requests may not be honored.
(c) The Recipient may request reimbursement of eligible construction and equipment costs consistent with budget amounts approved by the Division in the Final Budget Approval. (d) Additional Project Funds will be promptly disbursed to the Recipient upon receipt of reimbursement request Form 260 and Form 261, or any amendment thereto, duly completed and executed by the Recipient for incurred costs consistent with this Agreement, along with receipt of progress reports due under Exhibit A.
(e) The Recipient must not request reimbursement for any Project Cost until such cost has been incurred and is currently due and payable by the Recipient, although the actual payment of such cost by the Recipient is not required as a condition of reimbursement request. Supporting documentation (e.g., receipts) must be submitted with each reimbursement request. The amount requested for administration costs must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = total amount claimed). Disbursement of Project Funds will be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed reimbursement request. Upon request by the Division, supporting documents for professional and administrative services must include the employees’ names, classifications, labor rates, hours worked, and descriptions of the tasks performed.
Reimbursement requests submitted without supporting documents may be wholly or partially withheld at the discretion of the Division.
(f) The Recipient must spend Project Funds within 30 days of receipt. If the Recipient earns interest earned on Project Funds, it must report that interest immediately to the State Water Board. The State Water Board may deduct earned interest from future disbursements. (g) The Recipient shall not request a reimbursement unless that Project Cost is allowable, reasonable, and allocable.
(h) Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner which is in violation of or in conflict with federal or state laws, policies, or regulations.
(i) No work or travel outside the State of California is permitted under this Agreement unless the Division provides prior written authorization. Failure to comply with this restriction may result in termination this Agreement, pursuant to Exhibit C. Any reimbursement for necessary travel and per diem shall be at rates not to exceed those set by the California Department of Human Resources at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. as of the date costs are incurred by the Recipient.
B.1.8 Withholding of Disbursements.
Notwithstanding any other provision of this Agreement, the State Water Board may withhold all or any portion of the Project Funds upon the occurrence of any of the following events:
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
(a) The Recipient’s failure to maintain reasonable progress on the Project as determined by the Division;
(b) Placement on the ballot or passage of an initiative or referendum to repeal or reduce the Recipient’s taxes, assessments, fees, or charges levied for operation of the System or payment of debt service on System Obligations;
(c) Commencement of litigation or a judicial or administrative proceeding related to the Project, System, or Revenues that the State Water Board determines may impair the timely satisfaction of Recipient’s obligations under this Agreement; (d) Any investigation by the State Water Board, District Attorney, California State Auditor, Bureau of State Audits, the USEPA Office of Inspector General, the Internal Revenue Service, Securities and Exchange Commission, a grand jury, or any other state or federal agency, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls;
(e) A material adverse change in the condition of the Recipient, the Revenues, or the System, that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement, or any other event that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement;
(f) The Recipient’s material violation of, or threat to materially violate, any term of this Agreement;
(g) Suspicion of fraud, forgery, embezzlement, theft, or any other misuse of public funds by the Recipient or its employees, or by its contractors or agents regarding the Project or the System;
(h) An event requiring Notice as set forth in Exhibit C; (i) An Event of Default or an event that the Division determines may become an Event of Default.
B.1.9 Fraud and Misuse of Public Funds; Enforcement.
All requests for reimbursement submitted must be accurate and signed by the Recipient’s Authorized Representative under penalty of perjury. All costs submitted pursuant to this Agreement must only be for the work or tasks set forth in this Agreement. The Recipient must not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any eligible costs for which the Recipient is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is improper and will not be compensated. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements and, notwithstanding any other section in this Agreement, the termination of this Agreement requiring the repayment of all Project Funds disbursed hereunder. Additionally, the Deputy Director of the Division may request an audit; refer the matter for appropriate administrative action, including but not limited to the recovery of financial assistance provided and the imposition of civil penalties; and/or refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. A person who knowingly makes or causes to be made any false statement, material misrepresentation, or false certification in any submittal may be subject to a civil penalty, criminal fine, or imprisonment. (Wat. Code, § 13490 et seq.) B.2 RECIPIENT’S PAYMENT OBLIGATION, PLEDGE, AND RESERVE B.2.1 Project Costs.
The Recipient must pay any and all costs connected with the Project including, without limitation, any and all Project Costs and Additional Payments. If the Project Funds are not sufficient to pay the Project Costs in full, the Recipient must nonetheless complete the Project and pay that portion of the Project Costs in City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
excess of available Project Funds, and shall not be entitled to any reimbursement therefor from the State Water Board.
B.2.2 Estimated Principal Payment Due.
The estimated amount of principal that will be due to the State Water Board from the Recipient under this Agreement is three million one hundred and seventy-five thousand dollars and no cents ($3,175,000).
B.2.3 Interest Rate and In-Lieu of Interest Charges.
(a) The Recipient agrees to make all Payments according to the schedule in Exhibit E, and as otherwise set forth herein, at an interest rate of two and ten hundredths percent (2.10%) per annum. (b) Interest will accrue beginning with each disbursement. (c) In lieu of, and not to exceed, interest otherwise due under this Agreement, the Recipient agrees to pay the following charge(s), as further set forth in Exhibit E:
an Administrative Service Charge
a Drinking Water Small Community Emergency Grant Fund Charge B.2.4 [Reserved.]
B.2.5 Obligation Absolute.
The obligation of the Recipient to make the Payments and other payments required to be made by it under this Agreement, from the Net Revenues, is absolute and unconditional, and until such time as the Payments and Additional Payments have been paid in full, the Recipient must not discontinue or suspend any Payments or other payments required to be made by it hereunder when due, whether or not the Project, or any related part thereof is operating or operable or has been completed, or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, and such Payments and other payments shall not be subject to reduction whether by offset or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement for any cause whatsoever.
B.2.6 Payment Timing.
(a) The Recipient must pay interest annually, by December 31st of each year, until one year after Completion of Construction. Beginning no later than one year after Completion of Construction, the Recipient must make annual Payment of the principal of the Project Funds, together with all interest accruing thereon by December 31st. The Recipient must make Payments fully amortizing the total principal of the Project by the Final Payment Date. Payments are based on a standard fully amortized assistance amount with equal annual payments.
(b) The remaining balance is the previous balance, plus the disbursements, plus the accrued interest on both, plus any Charge In Lieu of Interest, less the Payment. Payment calculations will be made beginning one (1) year after Completion of Construction. Exhibit E is a payment schedule based on the provisions of this Exhibit and an estimated disbursement schedule. Actual payments will be based on actual disbursements.
(c) Upon Completion of Construction and submission of necessary reports by the Recipient, the Division will prepare an appropriate payment schedule and supply the same to the Recipient. The Division may amend this schedule as necessary to accurately reflect amounts due under this Agreement. The Division City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
will prepare any necessary amendments to the payment schedule and send them to the Recipient. The Recipient must make each Payment on or before the due date therefor. A ten (10) day grace period will be allowed, after which time a penalty in the amount of costs incurred by the State Water Board will be assessed for late payment. These costs may include, but are not limited to, lost interest earnings, staff time, bond debt service default penalties, if any, and other related costs. For purposes of penalty assessment, payment will be deemed to have been made if payment is deposited in the U.S. Mail within the grace period with postage prepaid and properly addressed. Any penalties assessed will not be added to the assistance amount balance, but will be treated as a separate account and obligation of the Recipient. The interest penalty will be assessed from the payment due date. (d) The Recipient is obligated to make all payments required by this Agreement to the State Water Board, notwithstanding any individual default by its constituents or others in the payment to the Recipient of fees, charges, taxes, assessments, tolls or other charges ("Charges") levied or imposed by the Recipient. The Recipient must provide for the punctual payment to the State Water Board of all amounts which become due under this Agreement and which are received from constituents or others in the payment to the Recipient. In the event of failure, neglect or refusal of any officer of the Recipient to levy or cause to be levied any Charge to provide payment by the Recipient under this Agreement, to enforce or to collect such Charge, or to pay over to the State Water Board any money collected on account of such Charge necessary to satisfy any amount due under this Agreement, the State Water Board may take such action in a court of competent jurisdiction as it deems necessary to compel the performance of all duties relating to the imposition or levying and collection of any of such Charges and the payment of the money collected therefrom to the State Water Board. Action taken pursuant hereto shall not deprive the State Water Board of, or limit the application of, any other remedy provided by law or by this Agreement. (e) Each Payment must be paid in lawful money of the United States of America by check or other acceptable form of payment set forth at www.waterboards.ca.gov/make_a_payment. The Recipient must pay Payments and Additional Payments from Net Revenues and/or other amounts legally available to the Recipient therefor.
B.2.7 Pledged Revenues.
B.2.7.1 Establishment of Enterprise Fund and Reserve Fund.
In order to carry out its System Obligations, the Recipient covenants that it shall establish and maintain or shall have established and maintained the Enterprise Fund. All Revenues received shall be deposited when and as received in trust in the Enterprise Fund. As required in this Exhibit, the Recipient must establish and maintain a Reserve Fund.
B.2.7.2 Pledge of Net Revenues, Enterprise Fund, and Reserve Fund.
The Obligation hereunder shall be secured by a lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve Fund on parity with the Parity Obligations. The Recipient hereby pledges and grants such lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve Fund to secure the Obligation, including payment of Payments and Additional Payments hereunder. The Enterprise Fund, Net Revenues in the Enterprise Fund, and any Reserve Fund shall be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Recipient.
B.2.7.3 Application and Purpose of the Enterprise Fund.
Subject to the provisions of any outstanding System Obligation, money on deposit in the Enterprise Fund shall be applied and used first, to pay Operations and Maintenance Costs, and thereafter, all amounts due and payable with respect to the System Obligations in order of priority. After making all payments City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
hereinabove required to be made in each Fiscal Year, the Recipient may expend in such Fiscal Year any remaining money in the Enterprise Fund for any lawful purpose of the Recipient.
B.2.8 No Prepayment.
Pursuant to State Water Board’s Debt Management Policy, adopted on October 3, 2017, the Recipient may not prepay any portion of the principal and interest due under this Agreement without the written consent of the Deputy Director of the Division.
B.2.9 Reserve Fund.
Prior to Completion of Construction, the Recipient must establish a restricted Reserve Fund, held in its Enterprise Fund, equal to one year’s Debt Service on this Obligation. The Recipient must maintain the Reserve Fund throughout the term of this Agreement. The Reserve Fund is subject to lien and pledged as security for this Obligation, and its use is restricted to payment of this Obligation during the term of this Agreement.
B.3 RATES, FEES AND CHARGES.
(a) The Recipient must, to the extent permitted by law, fix, prescribe and collect rates, fees and charges for the System during each Fiscal Year which are reasonable, fair, and nondiscriminatory and which will be sufficient to generate Revenues in the amounts necessary to cover Operations and Maintenance Costs, and must ensure that Net Revenues are equal to the sum of (i) at least 120% of the Maximum Annual Debt Service with respect to all outstanding System Obligations senior to and on parity with the Obligation and (ii) at least 100% of the Maximum Annual Debt Service with respect to all outstanding System Obligations subordinate to the Obligation, so long as System Obligations other than this Obligation are outstanding. Upon defeasance of all System Obligations other than this Obligation, this ratio must be at least 120%, except where System Obligations are defeased pursuant to refunding obligations.
(b) The Recipient may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates, fees and charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will at all times be sufficient to meet the requirements of this section.
(c) Upon consideration of a voter initiative to reduce Revenues, the Recipient must make a finding regarding the effect of such a reduction on the Recipient's ability to satisfy the rate covenant set forth in this Section. The Recipient must make its findings available to the public. The Recipient’s Authorized Representative must request, if necessary, the authorization of the Recipient’s decision-maker or decision-making body to file litigation to challenge any such initiative that it finds will render it unable to satisfy the rate covenant set forth in this Agreement and its obligation to operate and maintain the Project for its Useful Life. The Recipient must diligently pursue and bear any and all costs related to such challenge. The Recipient must notify and regularly update the State Water Board regarding the status of any such challenge.
B.4 ADDITIONAL DEBT
(a) The Recipient’s future debt that is secured by Revenues pledged herein may not be senior to this Obligation.
(b) The Recipient may issue additional parity or subordinate debt only if all of the following conditions are met:
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit B
i. No Event of Default (or no event with respect to which notice has been given and which, once all notice of grace periods have passed, would constitute an Event of Default) has occurred and is continuing;
ii. Net Revenues in the most recent Fiscal Year, excluding transfers from a rate stabilization fund, if any, meet the ratio for rate covenants set forth in this Exhibit with respect to any outstanding and proposed additional obligations;
iii. The Recipient is in compliance with any reserve fund requirement of this Obligation.
B.5 NO LIENS.
The Recipient must not make any pledge of or place any lien on the Project, System, or Revenues except as otherwise provided or permitted by this Agreement.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS
C.1 REPRESENTATIONS & WARRANTIES.
The Recipient represents, warrants, and commits to the following as of the Eligible Work Start Date and continuing thereafter for the term of this Agreement.
C.1.1 Application and General Recipient Commitments.
The Recipient has not made any untrue statement of a material fact in its application for this financial assistance, or omitted to state in its application a material fact that makes the statements in its application not misleading.
The Recipient agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents.
The Recipient agrees to fulfill all assurances, declarations, representations, and commitments in its application, accompanying documents, and communications filed in support of its request for funding under this Agreement.
C.1.2 Authorization and Validity.
The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law.
C.1.3 No Violations.
The execution, delivery, and performance by Recipient of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date of execution of this Agreement by the Recipient, or result in any breach or default under any contract, obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound as of the date of execution of this Agreement by the Recipient.
C.1.4 No Litigation.
There are, as of the date of execution of this Agreement by the Recipient, no pending or, to Recipient’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency which materially affect, or, if resolved unfavorably to the Recipient, would materially affect the financial condition or operations of the Recipient, the System, the Revenues, and/or the Project.
There are no proceedings, actions, or offers by a public entity to acquire by purchase or the power of eminent domain the System or any of the real or personal property related to or necessary for the Project.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
C.1.5 Property Rights and Water Rights.
The Recipient owns or has sufficient property rights in the Project property for the longer of the Useful Life or the term of this Agreement, either in fee simple or for a term of years that is not subject to third-party revocation during the Useful Life of the Project.
The Recipient possesses all water rights necessary for this Project.
C.1.6 Solvency and Insurance.
None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. The Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Recipient is able to pay its debts as they become due. The Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example but not necessarily limited to, general liability, automobile liability, workers compensation and employer liability, professional liability.
C.1.7 Legal Status and Eligibility.
The Recipient is duly organized and existing and in good standing under the laws of the State of California. Recipient must at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. The Recipient acknowledges that changes to its legal or financial status may affect its eligibility for funding under this Agreement and commits to maintaining its eligibility. Within the preceding ten years, the Recipient has not failed to demonstrate compliance with state or federal audit disallowances.
C.1.8 Financial Statements and Continuing Disclosure.
The financial statements of Recipient previously delivered to the State Water Board as of the date(s) set forth in such financial statements: (a) are materially complete and correct; (b) present fairly the financial condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of such financial statements, there has been no material adverse change in the financial condition of the Recipient, nor have any assets or properties reflected on such financial statements been sold, transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by Recipient and approved in writing by the State Water Board.
The Recipient is current in its continuing disclosure obligations associated with its material debt, if any.
C.1.9 System Obligations
The Recipient has no System Obligations other than those defined in this Agreement.
C.1.10 No Other Material Obligations.
The Recipient has no Material Obligations.
C.1.11 Compliance with State Water Board Funding Agreements.
The Recipient represents that it is in compliance with all State Water Board funding agreements to which it is a party.
C.2 DEFAULTS AND REMEDIES
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
In addition to any other remedy set forth in this Agreement, the following remedies are available under this Agreement.
C.2.1 Return of Funds; Acceleration; and Additional Payments.
Notwithstanding any other provision of this Agreement, if the Division determines that an Event of Default has occurred, the Recipient may be required, upon demand, immediately to do each of the following:
i. return to the State Water Board any grant or principal forgiveness amounts received pursuant to this Agreement;
ii. accelerate the payment of any principal owed under this Agreement, all of which shall be immediately due and payable;
iii. pay interest at the highest legal rate on all of the foregoing; and iv. pay any Additional Payments.
C.2.3 Administrative remedies.
Whenever the State Water Board determines that the Recipient, the Recipient’s contractor, consultant, employee, agent, assignee, or grantee has violated any requirement or term of the Agreement, the State Water Board may impose civil penalties in accordance with Water Code, section 13497. The State Water Board may impose civil liability administratively against the Recipient or the Recipient’s consultant or contractor or other agent furnishing any information related to funds disbursed or costs claimed for reimbursement if the Recipient or the Recipient’s consultant or contractor or other agent fails to personally attest that the information is true, accurate, and complete the best of one’s knowledge. (Wat.
Code, § 13498.) The State Water Board may impose civil liability administratively against any person who makes a misrepresentation in any submittal to the State Water Board, including, but not limited to, an application, report, certification, record, invoice, form, or other document that is submitted to the State Water Board relating to a financial assistance agreement. (Wat. Code, § 13499.) C.2.4 Judicial remedies.
Whenever the State Water Board determines that an Event of Default shall have occurred, the State Water Board may enforce its rights under this Agreement by any judicial proceeding, whether at law or in equity. Without limiting the generality of the foregoing, the State Water Board may:
i. by suit in equity, require the Recipient to account for amounts relating to this Agreement as if the Recipient were the trustee of an express trust; ii. by mandamus or other proceeding, compel the performance by the Recipient and any of its officers, agents, and employees of any duty under the law or of any obligation or covenant under this Agreement, including but not limited to the imposition and collection of rates for the services of the System sufficient to meet all requirements of this Agreement; and
iii. take whatever action at law or in equity as may appear necessary or desirable to the State Water Board to collect the Payments then due or thereafter to become due, or to enforce performance of any obligation or covenant of the Recipient under this Agreement.
Upon the filing of a suit or other commencement of judicial proceedings to enforce the rights of the State Water Board under this Agreement, the State Water Board may make application for the appointment of a receiver or custodian of the Revenues, pending such proceeding, with such power as the court making such appointment may confer.
C.2.5 Termination.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
Upon an Event of Default, the State Water Board may terminate this Agreement. Interest shall accrue on all amounts due at the highest legal rate of interest from the date that the State Water Board delivers notice of termination to the Recipient.
C.2.6 Damages for Breach of Tax-Exempt Status.
In the event that any breach of any of the provisions of this Agreement by the Recipient results in the loss of tax-exempt status for any bonds of the State or any subdivision or agency thereof, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government by reason of any arbitrage profits, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.
C.2.7 Damages for Breach of Federal Conditions.
In the event that any breach of any of the provisions of this Agreement by the Recipient results in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.
C.2.8 Remedies and Limitations.
None of the remedies available to the State Water Board shall be exclusive of any other remedy, and each such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. The State Water Board may exercise any remedy, now or hereafter existing, without exhausting and without regard to any other remedy.
Any claim of the Recipient is limited to the rights and remedies provided to the Recipient under this Agreement and is subject to the claims procedures provided to the Recipient under this Agreement.
C.2.9 Non-Waiver.
Nothing in this Agreement shall affect or impair the Recipient’s Obligation to pay Payments as provided herein or shall affect or impair the right of the State Water Board to bring suit to enforce such payment.
No delay or omission of the State Water Board in the exercise of any right arising upon an Event of Default shall impair any such right or be construed to be a waiver of any such Event of Default. The State Water Board may exercise from time to time and as often as shall be deemed expedient by the State Water Board, any remedy or right provided by law or pursuant to this Agreement.
C.2.10 Status Quo.
If any action to enforce any right or exercise any remedy shall be brought and either discontinued or determined adversely to the State Water Board, then the State Water Board shall be restored to its former position, rights and remedies as if no such action had been brought.
C.3 STANDARD CONDITIONS
C.3.1 Access, Inspection, and Public Records.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
The Recipient must ensure that the State Water Board, the Governor of the State, the USEPA, the USEPA’s Office of Inspector General, any member of Congress, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of the Agreement. The Recipient acknowledges that, except for a subset of information regarding archaeological records, the Project records and locations are public records, including but not limited to all of the submissions accompanying the application, all of the documents incorporated into this Agreement by reference, and all reports, reimbursement requests, and supporting documentation submitted hereunder.
C.3.2 Accounting and Auditing Standards; Financial Management Systems; Records Retention. (a) The Recipient must maintain project accounts according to GAAP as issued by the Governmental Accounting Standards Board (GASB) or its successor. The Recipient must maintain GAAP-compliant project accounts, including GAAP requirements relating to the reporting of infrastructure assets. (b) The Recipient must comply with federal standards for financial management systems. The Recipient agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit preparation of reports required by the federal government and tracking of Project funds to a level of expenditure adequate to establish that such funds have not been used in violation of federal or state law or the terms of this Agreement. To the extent applicable, the Recipient must comply with the provisions and requirements of the federal Single Audit Act (SAA) of 1984, 2 CFR part 200, subpart F, and 2 CFR section 200.302, and updates or revisions thereto, including but not limited to:
Maintain an annual (Fiscal Year) accounting system and identify all expenditures of federal financial assistance;
Conduct a SAA audit using an independent auditor in those Fiscal Years when expenditures of total federal financial assistance equal or exceed the applicable threshold in 2 CFR section 200.501, and submit the SAA audit to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report(s) or nine (9) months of the end of the audit period;
Notify the Division when a SAA audit has been conducted and submitted to the Federal Audit Clearinghouse;
Notify and provide the Division with a copy of the SAA audit within thirty (30) days of completion of the audit;
Inform the Division of findings and recommendations pertaining to federal financial assistance provided through the State Water Board contained in SAA audits conducted by the Recipient; Initiate corrective actions for audit reports with findings and recommendations that impact federal financial assistance provided through the State Water Board and notify the Division when corrective actions are complete.
(c) Without limitation of the requirement to maintain Project accounts in accordance with GAAP, the Recipient must:
i. Establish an official file for the Project which adequately documents all significant actions relative to the Project;
ii. Establish separate accounts which will adequately and accurately depict all amounts received and expended on the Project, including all assistance funds received under this Agreement;
iii. Establish separate accounts which will adequately depict all income received which is attributable to the Project, specifically including any income attributable to assistance funds disbursed under this Agreement; City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
iv. Establish an accounting system which will accurately depict final total costs of the Project, including both direct and Indirect Costs;
v. Establish such accounts and maintain such records as may be necessary for the State to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and vi. If Force Account is used by the Recipient for any phase of the Project, other than for planning, design, and construction engineering and administration provided for by allowance, accounts will be established which reasonably document all employee hours charged to the Project and the associated tasks performed by each employee.
(d) The Recipient must maintain separate books, records and other material relative to the Project.
The Recipient must also retain such books, records, and other material for itself and for each contractor or subcontractor who performed or performs work on this project for a minimum of thirty-six (36) years after Completion of Construction. The Recipient must require that such books, records, and other material are subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by the State Water Board, the California State Auditor, the Bureau of State Audits, the USEPA, the USEPA’s Office of Inspector General, the Internal Revenue Service, the Governor, or any authorized representatives of the aforementioned. The Recipient must allow and must require its contractors to allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Recipient agrees to include a similar duty regarding audit, interviews, and records retention in any contract or subcontract related to the performance of this Agreement. The provisions of this section survive the term of this Agreement.
C.3.3 Amendment.
No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by both the Recipient and the Deputy Director or designee.
Requests for amendments must be in writing and directed to the contact listed in Section 4 and to the Division’s Chief of Loans and Grants Administration Section.
C.3.4 Assignability.
This Agreement is not assignable by the Recipient, either in whole or in part, without the consent of the State Water Board in the form of a formal written amendment to this Agreement.
C.3.5 Audit.
(a) The Division may call for an audit of financial information relative to the Project if the Division determines that an audit is desirable to assure program integrity or if an audit becomes necessary because of state or federal requirements. If an audit is called for, the audit must be performed by a certified public accountant independent of the Recipient and at the cost of the Recipient. The audit must be in the form required by the Division.
(b) Audit disallowances must be returned to the State Water Board.
C.3.6 Bonding.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
Where contractors are used, the Recipient must not authorize construction to begin until each contractor has furnished a performance bond in favor of the Recipient in the following amounts: faithful performance (100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00.
C.3.7 Competitive Bidding
Recipient must adhere to any applicable state law or local ordinance for competitive bidding and applicable labor laws.
C.3.8 Compliance with Applicable Laws, Rules, and Requirements.
The Recipient must, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements. Without limitation of the foregoing, to the extent applicable, the Recipient must:
(a) Comply with the provisions of the adopted environmental mitigation plan, if any, for the term of this Agreement;
(b) Comply with the Policy; and
(c) Comply with and require compliance with the state and federal requirements set forth elsewhere in this Agreement.
C.3.9 Computer Software.
The Recipient certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws.
C.3.10 Conflict of Interest.
The Recipient certifies that its owners, officers, directors, agents, representatives, and employees are in compliance with applicable state and federal conflict of interest laws.
C.3.11 Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project The Recipient agrees that, except as provided in this Agreement, it will not abandon, substantially discontinue use of, lease, sell, transfer ownership of, or dispose of all or a significant part or portion of the Project during the Useful Life of the Project without prior written approval of the Division. Such approval may be conditioned as determined to be appropriate by the Division, including a condition requiring repayment of all disbursed Project Funds or all or any portion of all remaining funds covered by this Agreement together with accrued interest and any penalty assessments that may be due.
C.3.12 Data Management.
The Recipient will undertake appropriate data management activities so that Project data can be incorporated into statewide data systems.
C.3.13 Disputes.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
(a) The Recipient may appeal a staff decision within 30 days to the Deputy Director of the Division or designee, for a final Division decision. The Recipient may appeal a final Division decision to the State Water Board within 30 days. The Office of the Chief Counsel of the State Water Board will prepare a summary of the dispute and make recommendations relative to its final resolution, which will be provided to the State Water Board’s Executive Director and each State Water Board Member. Upon the motion of any State Water Board Member, the State Water Board will review and resolve the dispute in the manner determined by the State Water Board. Should the State Water Board determine not to review the final Division decision, this decision will represent a final agency action on the dispute. (b) This clause does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law.
(c) Recipient must continue with the responsibilities under this Agreement during any dispute. (d) This section relating to disputes does not establish an exclusive procedure for resolving claims within the meaning of Government Code sections 930 and 930.4.
C.3.15 Environmental Clearance.
(a) No work that is subject to CEQA or NEPA may proceed under this Agreement unless the State Water Board has provided environmental clearance. The State Water Board may require changes in the scope of work or additional mitigation as a condition to providing construction or implementation funding under this Agreement. Recipient shall not perform any work subject to CEQA and/or NEPA before the State Water Board completes its environmental review and specifies any changes in scope or additional mitigation that may be required. Proceeding with work subject to CEQA and/or NEPA without approval by the State Water Board shall constitute a breach of a material provision of this Agreement. (b) If this Project includes modification of a river or stream channel, the Recipient must fully mitigate environmental impacts resulting from the modification. The Recipient must provide documentation that the environmental impacts resulting from such modification will be fully mitigated considering all of the impacts of the modification and any mitigation, environmental enhancement, and environmental benefit resulting from the Project, and whether, on balance, any environmental enhancement or benefit equals or exceeds any negative environmental impacts of the Project.
C.3.16 Governing Law.
This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.
C.3.17 Income Restrictions.
The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Recipient under this Agreement must be paid by the Recipient to the State Water Board, to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the State Water Board under this Agreement.
C.3.18 Indemnification and State Reviews.
The parties agree that review or approval of Project plans and specifications by the State Water Board is for administrative purposes only, including conformity with application and eligibility criteria, and expressly not for the purposes of design defect review or construction feasibility, and does not relieve the Recipient of its responsibility to properly plan, design, construct, operate, and maintain the Project. To the extent permitted by law, the Recipient agrees to indemnify, defend, and hold harmless the State Water Board, City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
the Bank, and any trustee, and their officers, employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with (1) the System or the Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or construction, of the System or the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System or the Project; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Recipient for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement, except those arising from the gross negligence or willful misconduct of the Indemnified Persons. The Recipient must also provide for the defense and indemnification of the Indemnified Persons in any contractual provision extending indemnity to the Recipient in any contract let for the performance of any work under this Agreement, and must cause the Indemnified Persons to be included within the scope of any provision for the indemnification and defense of the Recipient in any contract or subcontract. To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section survive the term of this Agreement.
C.3.19 Independent Actor.
The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State Water Board.
C.3.20 Integration.
This Agreement constitutes the complete and final agreement between the parties. No oral or written understanding or agreement not incorporated in this Agreement shall be binding on either party.
C.3.21 Leveraging Covenants.
(a) Notwithstanding any other provision hereof, the Recipient covenants and agrees that it will comply with the Tax Covenants set forth in Exhibit F of this Agreement. (a) The Recipient covenants to furnish such financial, operating and other data pertaining to the Recipient as may be requested by the State Water Board to: (i) enable the State Water Board to cause the issuance of Bonds and provide for security therefor; or (ii) enable any underwriter of Bonds issued for the benefit of the State Water Board to comply with Rule 15c2-12(b)(5). (b) The Recipient further covenants to provide the State Water Board with copies of all continuing disclosure documents or reports that are disclosed pursuant to (i) the Recipient’s continuing disclosure undertaking or undertakings made in connection with any outstanding System Obligation, (ii) the terms of any outstanding System Obligation, or (iii) a voluntary disclosure of information related to an outstanding System Obligation. The Recipient must disclose such documents or City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
reports to the State Water Board at the same time such documents or reports are submitted to any dissemination agent, trustee, nationally recognized municipal securities information repository, the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (EMMA) website or other person or entity.
C.3.22 No Discrimination.
(a) The Recipient must comply with Government Code section 11135 and the implementing regulations (Cal. Code Regs, tit. 2, § 14000 et seq.), including, but not limited to, ensuring that no person is unlawfully denied full and equal access to the benefits of, or unlawfully subjected to discrimination in the operation of, the Project or System on the basis of sex, race, color, religion, ancestry, national origin, ethnic group identification, age, mental disability, physical disability, medical condition, genetic information, marital status, or sexual orientation as such terms are defined under California law, for as long as the Recipient retains ownership or possession of the Project.
(b) If Project Funds are used to acquire or improve real property, the Recipient must include a covenant of nondiscrimination running with the land in the instrument effecting or recording the transfer of such real property.
(c) The Recipient must comply with the federal American with Disabilities Act of 1990 and implementing regulations as required by Government Code section 11135(b). (d) The Recipient’s obligations under this section shall survive the term of this Agreement. (e) During the performance of this Agreement, Recipient and its contractors and subcontractors must not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status.
(f) The Recipient, its contractors, and subcontractors must ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. (g) The Recipient, its contractors, and subcontractors must comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990, subds. (a)-(f) et seq.;Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. (h) The Recipient, its contractors, and subcontractors must comply with all applicable federal civil rights regulations, including statutory and national policy requirements. (2 CFR § 200.300). This includes, to the greatest extent practicable and to the extent permitted by law, the requirement to respect and protect the freedom of persons and organizations to engage in political and religious speech. (Executive Order 13798).
(i) The Recipient, its contractors, and subcontractors must give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (j) The Recipient must include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.
C.3.23 No Third Party Rights.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or of any duty, covenant, obligation, or undertaking established herein.
C.3.24 No Obligation of the State.
Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the State and any such obligation shall be payable solely out of the moneys encumbered pursuant to this Agreement.
C.3.25 Notice.
Upon the occurrence of any of the following events, the Recipient must provide notice as set forth below. (a) Within 24 hours of the following, the Recipient must notify the Division by phone at (916) 327-9978 and by email to [email protected], [email protected] and [email protected] of:
i. The seizure of, or levy on, any Revenues securing this Agreement; ii. Any discovery of any potential tribal cultural resource, archaeological or historical resource, or human remains in the Project area (also notify the Division’s Senior Cultural Resources Officer, at ([email protected]). Should a potential tribal cultural resource or archaeological or historical resource be discovered during construction or Project implementation, the Recipient must ensure that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the Division has determined what actions should be taken to protect and preserve the resource. The Recipient must implement appropriate actions as directed by the Division. If there are any applicable provisions of a mitigation, monitoring and reporting program adopted for the Project, the Recipient shall comply with such provisions. In the event of the discovery of human remains during construction of the Project, the Recipient shall cease construction and take other action required by any applicable laws, which may include but are not limited to Health and Safety Code, section 7050.5 and Public Resources Code, section 5097.98.
(b) Within five (5) business days, the Recipient must notify the Division by phone at (916) 327-9978; by email to [email protected]
[email protected], [email protected], and [email protected]; and by mail to the contact address set forth in Section 4 of this Agreement of the occurrence of any of the following events:
i. Bankruptcy, insolvency, receivership or similar event of the Recipient, or actions taken in anticipation of any of the foregoing;
ii. Change of ownership of the Project or the System or change of management or service contracts, if any, for operation of the System; iii. Loss, theft, damage, or impairment to Project, the Revenues or the System; iv. Failure to meet any debt service coverage test in Exhibit B of this Agreement; v. Draws on the Reserve Fund;
vi. Listed Events and Events of Default, except as otherwise set forth in this section; vii. Failure to observe or perform any covenant or comply with any condition in this Agreement;
viii. An offer from a public entity to purchase the Project or the System or any portion thereof, or any of the real or personal property related to or necessary for the Project;
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
ix. A proceeding or action by a public entity to acquire the Project or the System by power of eminent domain;
x. Incurrence of a System Obligation or other Material Obligation by the Recipient; or
xi. A default, event of acceleration, termination event, modification of terms, or other similar event under the terms of a System Obligation or other Material Obligation of the Recipient, any of which reflect financial difficulties. (c) Within ten (10) business days, the Recipient must notify the Division by phone at (916) 327-9978, by email to [email protected], [email protected] and [email protected], and by mail to the contact address set forth in Section 4 of this Agreement of the following events:
i. Material defaults on Material Obligations, other than this Obligation; ii. Unscheduled draws on material debt service reserves or credit enhancements, reflecting financial difficulties;
iii. Substitution of credit or liquidity providers, if any or their failure to perform; iv. Any litigation pending or threatened with respect to the Project or the Recipient’s technical, managerial or financial capacity to operate the System or the Recipient’s continued existence, or any judgment or court order relating to such litigation that has a significant effect on the Project or the System; v. Circulation of a petition to repeal, reduce, or otherwise challenge the Recipient’s rates for services of the System;
vi. Consideration of dissolution, or disincorporation, or any other event that could materially impair the Revenues;
vii. Adverse tax opinions, the issuance by the Internal Revenue Service or proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices of determinations with respect to the tax status of any tax-exempt bonds;
viii. Rating changes on outstanding System Obligations, if any; ix. Enforcement actions by or brought on behalf of the State Water Board or Regional Water Board; or
x. Any investigation by the District Attorney, California State Auditor, Bureau of State Audits, USEPA’s Office of Inspector General, the Internal Revenue Service, Securities and Exchange Commission, a grand jury, or any other state or federal agency, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls;
(d) The Recipient must notify the Division promptly by phone at (916) 327-9978, by email to [email protected], [email protected] and [email protected], and by mail to the contact address set forth in Section 4 of this Agreement of any of the following events:
i. The discovery of a false statement of fact or representation made in this Agreement or in the application to the Division for this financial assistance, or in any certification, report, or request for reimbursement made pursuant to this Agreement, by the Recipient, its employees, agents, or contractors; ii. Any substantial change in scope of the Project. The Recipient must undertake no substantial change in the scope of the Project until prompt written notice of the proposed change has been provided to the Division and the Division has given written approval for the change;
iii. Cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more; City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
iv. Any circumstance, combination of circumstances, or condition, which is expected to or does delay Completion of Construction for a period of ninety (90) days or more;
v. Discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. Should a federally protected species be unexpectedly encountered during construction of the Project, the Recipient agrees to promptly notify the Division. This notification is in addition to the Recipient’s obligations under the federal Endangered Species Act; vi. Any Project monitoring, demonstration, or other implementation activities required in Exhibit A or Exhibit D of this Agreement, if any; vii. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by state and federal representatives with at least ten (10) working days’ notice to the Division;
viii. Any allegation of research misconduct involving research activities that are supported in whole or in part with USEPA funds under this Project, as required by Exhibit C.4.3(xxvii);
ix. Any events requiring notice to the Division pursuant to the provisions of this Agreement;
x. Completion of Construction of the Project, and actual Project Completion; xi. The award of the prime construction contract for the Project; xii. Initiation of construction of the Project.
C.3.26 Operation and Maintenance; Insurance.
The Recipient agrees to sufficiently and properly staff, operate and maintain all portions of the System during the Useful Life of the Project in accordance with all applicable state and federal laws, rules, and regulations.
The Recipient will procure and maintain or cause to be maintained insurance on the System with responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against such risks (including damage to or destruction of the System) as are usually covered in connection with systems similar to the System. Such insurance may be maintained by a self-insurance plan so long as such plan provides for (i) the establishment by the Recipient of a separate segregated self-insurance fund in an amount determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the field of risk management employing accepted actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk management program.
In the event of any damage to or destruction of the System caused by the perils covered by such insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the System. The Recipient must begin such reconstruction, repair or replacement as expeditiously as possible, and must pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same must be completed and the System must be free and clear of all claims and liens. If such net proceeds are insufficient to reconstruct, repair, or restore the System to the extent necessary to enable the Recipient to pay all remaining unpaid principal portions of the Payments, if any, in accordance with the terms of this Agreement, the Recipient must provide additional funds to restore or replace the damaged portions of the System.
Recipient agrees that for any policy of insurance concerning or covering the construction of the Project, it will cause, and will require its contractors and subcontractors to cause, a certificate of insurance to be issued showing the State Water Board, its officers, agents, employees, and servants as additional City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
insured; and must provide the Division with a copy of all such certificates prior to the commencement of construction of the Project.
C.3.27 Permits, Subcontracting, and Remedies.
Recipient must procure all permits, licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work. Signed copies of any such permits or licenses must be submitted to the Division before any construction begins.
The Recipient must not contract or allow subcontracting with excluded parties. The Recipient must not contract with any party who is debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this funding is authorized. For any work related to this Agreement, the Recipient must not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which funding under this Agreement is authorized. The State Water Board’s List of Disqualified Businesses and Persons is located at
http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml C.3.28 Professionals.
The Recipient agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for. All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineering, architectural, or geologic sciences, shall be prepared by or under the direction of persons registered to practice in California pursuant to Business and Professions Code, sections 5536.1, 6735, 7835, and 7835.1. To demonstrate compliance with California Code of Regulations, title 16, sections 415 and 3065, all technical reports must contain a statement of the qualifications of the responsible registered professional(s). As required by these laws, completed technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work.
C.3.29 Prevailing Wages.
The Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing wages. The Recipient must monitor all agreements subject to reimbursement from this Agreement to ensure that the prevailing wage provisions of the State Labor Code are being met.
In addition, the Recipient agrees to comply with the Davis-Bacon provisions incorporated by reference in Section 3 of this Agreement.
C.3.30 Public Funding.
This Project is publicly funded. Any service provider or contractor with which the Recipient contracts must not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances.
C.3.31 Recipient’s Responsibility for Work.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for responding to any and all disputes arising out of its contracts for work on the Project. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work.
C.3.32 Related Litigation.
Under no circumstances may the Recipient use funds from any reimbursement under this Agreement to pay costs associated with any litigation the Recipient pursues against the State Water Board or any Regional Water Quality Control Board. Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Recipient agrees to repay all of the disbursed funds plus interest in the event that Recipient does not complete the project.
C.3.33 Rights in Data.
The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement are subject to the rights of the State as set forth in this section. The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same, except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and to authorize others to do so, and to receive electronic copies from the Recipient upon request.
C.3.34 State Water Board Action; Costs and Attorney Fees.
Any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the State Water Board as a result of breach of this Agreement by the Recipient, whether such breach occurs before or after completion of the Project, and exercise of any remedy provided by this Agreement by the State Water Board shall not preclude the State Water Board from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own costs and attorney fees.
C.3.35 Timeliness.
Time is of the essence in this Agreement.
C.3.36 Unenforceable Provision.
In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.
C.3.37 Venue.
Any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California.
C.3.38 Waiver and Rights of the State Water Board.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
Any waiver of rights by the State Water Board with respect to a default or other matter arising under this Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter. Any rights and remedies of the State Water Board provided for in this Agreement are in addition to any other rights and remedies provided by law.
C.4 MISCELLANEOUS STATE AND FEDERAL REQUIREMENTS
C.4.1 [Reserved.]
C.4.2 State Cross-Cutters.
Recipient represents that, as applicable, it complies and covenants to maintain compliance with the following with respect to all Project Costs for the term of this Agreement:
i. The California Environmental Quality Act (CEQA), as set forth in Public Resources Code 21000 et seq. and in the CEQA Guidelines at Title 14, Division 6, Chapter 3, Section 15000 et seq. ii. Water Conservation requirements, including regulations in Division 3 of Title 23 of the California Code of Regulations.
iii. Monthly Water Diversion Reporting requirements, including requirements set forth in Water Code section 5103.
iv. Public Works Contractor Registration with Department of Industrial Relations requirements, including requirements set forth in Sections 1725.5 and 1771.1 of the Labor Code. v. Volumetric Pricing & Water Meters requirements, including the requirements of Water Code sections 526 and 527.
vi. Urban Water Management Plan requirements, including the Urban Water Management Planning Act (Water Code, § 10610 et seq.).
vii. Urban Water Demand Management requirements, including the requirements of Section 10608.56 of the Water Code.
viii. Delta Plan Consistency Findings requirements, including the requirements of Water Code section 85225 and California Code of Regulations, title 23, section 5002. ix. Agricultural Water Management Plan Consistency requirements, including the requirements of Water Code section 10852.
x. Charter City Project Labor Requirements, including the requirements of Labor Code section 1782 and Public Contract Code section 2503.
xi. The Recipient agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with directives or orders issued pursuant to Division 7 of the Water Code.
xii. Regulations in Division 4 of Title 22 of the California Code of Regulations, including but not limited to California Waterworks Standards in Chapter 16, and Lead and Copper regulations in Chapter 17.5.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
C.4.3 Federal Requirements and Cross-Cutters for SRF Funding.
The Recipient acknowledges, warrants compliance with, and covenants to continuing compliance with the following federal terms and conditions with respect to all Project Costs for the term of this Agreement and for the Useful Life of the Project:
i. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient shall not purchase “iron and steel products” produced outside of the United States on this Project. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient hereby certifies that all “iron and steel products” used in the Project were or will be produced in the United States. For purposes of this section, the term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. “Steel” means an alloy that includes at least 50 percent iron, between .02 and 2 percent carbon, and may include other elements.
ii. [Reserved.]
iii. The Recipient must include in full the Wage Rate Requirements (Davis-Bacon) language incorporated by reference in Section 3 of this Agreement in all construction contracts and subcontracts.
iv. The Recipient must comply with the signage requirements set forth in Exhibit A. v. The Recipient shall notify the State Water Board and the USEPA contact of public or media events publicizing the accomplishment of significant events related to this Project and provide the opportunity for attendance and participation by federal representatives with at least ten (10) working days’ notice.
vi. The Recipient shall comply with applicable USEPA general terms and conditions found at: EPA General Terms and Conditions effective October 1, 2024 or later. vii. No Recipient may receive funding under this Agreement unless it has provided its Unique Entity Identifier, assigned by the System for Award Management, to the State Water Board. viii. The Recipient represents and warrants that it and its principals are not excluded or disqualified from participating in this transaction as such terms are defined in Parts 180 and 1532 of Title 2 of the Code of Federal Regulations (2 CFR). If the Recipient is excluded after execution of this Agreement, the Recipient shall notify the Division within ten (10) days and shall inform the Division of the Recipient’s exclusion in any request for amendment of this Agreement. The Recipient shall comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR. Such compliance is a condition precedent to the State Water Board’s performance of its obligations under this Agreement. When entering into a covered transaction as defined in Parts 180 and 1532 of 2 CFR, the Recipient shall require the other party to the covered transaction to comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
ix. To the extent applicable, the Recipient shall disclose to the State Water Board any potential conflict of interest consistent with USEPA’s Final Financial Assistance Conflict of Interest Policy at https://www.epa.gov/grants/epas-final-financial-assistance-conflict-interest-policy. A conflict of interest may result in disallowance of costs.
x. USEPA and the State Water Board have the right to reproduce, publish, use and authorize others to reproduce, publish and use copyrighted works or other data developed under this assistance agreement.
xi. Where an invention is made with Project Funds, USEPA and the State Water Board retain the right to a worldwide, nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention owned by the Recipient. The Recipient must utilize the Interagency Edison extramural invention reporting system at https://www.nist.gov/iedison and shall notify the Division when an invention report, patent report, or utilization report is filed. xii. The Recipient agrees that any reports, documents, publications or other materials developed for public distribution supported by this Agreement shall contain the Disclosure statement set forth in Exhibit A.
xiii. The Recipient acknowledges that it is encouraged to follow guidelines established under Section 508 of the Rehabilitation Act, codified at 36 CFR Part 1194, with respect to enabling individuals with disabilities to participate in its programs supported by this Project. xiv. The Recipient, its employees, contractors and subcontractors and their employees warrants that it will not engage in severe forms of trafficking in persons, procure a commercial sex act during the term of this Agreement, or use forced labor in the performance of this Agreement. The Recipient must include this provision in its contracts and subcontracts under this Agreement. The Recipient must inform the State Water Board immediately of any information regarding a violation of the foregoing. The Recipient understands that failure to comply with this provision may subject the State Water Board to loss of federal funds. The Recipient agrees to compensate the State Water Board for any such funds lost due to its failure to comply with this condition, or the failure of its contractors or subcontractors to comply with this condition. The State Water Board may unilaterally terminate this Agreement if the Recipient that is a private entity is determined to have violated the foregoing.
xv. The Recipient certifies to the best of its knowledge and belief that:
a. No federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, 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. b. 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 in connection with this Agreement, the Recipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions, and notify the State Water Board.
The Recipient shall require this certification from all parties to any contract or agreement that the Recipient enters into and under which the Recipient incurs costs for which it seeks reimbursements under this Agreement.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
xvi. The Recipient must comply with the following federal non-discrimination requirements:
a. Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, and national origin, including limited English proficiency (LEP). b. Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against persons with disabilities.
c. The Age Discrimination Act of 1975, which prohibits age discrimination. d. Section 13 of the Federal Water Pollution Control Act Amendments of 1972, which prohibits discrimination on the basis of sex.
e. 40 CFR Part 7, as it relates to the foregoing.
xvii. The Recipient agrees to comply with the requirements of USEPA’s Program for Utilization of Small, Minority and Women’s Business Enterprises.
xviii. Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans; 42 USC § 7606; 33 USC § 1368. Except where the purpose of this Agreement is to remedy the cause of the violation, the Recipient may not procure goods, services, or materials from suppliers excluded under the federal System for Award Management: sam.gov
xix. Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended; 42 USC §§4601-4655. The Recipient must comply with the Act’s implementing regulations at 49 CFR 24.101 through 24.105.
xx. The Recipient agrees that if its network or information system is connected to USEPA networks to transfer data using systems other than the Environmental Information Exchange Network or USEPA’s Central Data Exchange, it will ensure that any connections are secure. For purposes of this subsection, a connection is defined as a dedicated persistent interface between a USEPA information technology system and an external information technology system for the purpose of transferring information. Transitory, user-controlled connections such as website browsing are excluded from this definition. If the Recipient's connections as defined above do not go through the Environmental Information Exchange Network or USEPA's Central Data Exchange, the Recipient agrees to contact the USEPA Project Officer and work with the designated Regional/Headquarters Information Security Officer to ensure that the connections meet USEPA security requirements, including entering into Interconnection Service Agreements as appropriate.
This condition does not apply to manual entry of data by the Recipient into systems operated and used by USEPA's regulatory programs for the submission of reporting and/or compliance data. xxi. All geospatial data created pursuant to this Agreement that is submitted to the State Water Board for use by USEPA or that is submitted directly to USEPA must be consistent with Federal Geographic Data Committee endorsed standards. Information on these standards may be found at www.fgdc.gov.
i. If the Recipient is a water system that serves 500 or fewer persons, the Recipient represents that it has considered publicly-owned wells as an alternative drinking water supply. ii. The Recipient represents that it is not a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability; and it is not a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24 months.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
iii. The Recipient agrees to immediately notify the Project Manager in writing about any allegation of research misconduct involving research activities that are supported in whole or in part with USEPA funds under this Project, including fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results, or ordering, advising, or suggesting that subordinates engage in research misconduct. iv. The Recipient agrees to comply with, and require all contractors and subcontractors to comply with, USEPA’s Scientific Integrity Policy, available at https://www.epa.gov/osa/policy-epascientific-integrity, when conducting, supervising, and communicating science and when using or applying the results of science. For purposes of this condition scientific activities include, but are not limited to, computer modelling, economic analysis, field sampling, laboratory experimentation, demonstrating new technology, statistical analysis, and writing a review article on a scientific issue.
The Recipient shall not suppress, alter, or otherwise impede the timely release of scientific findings or conclusions; intimidate or coerce scientists to alter scientific data, findings, or professional opinions or exert non-scientific influence on scientific advisory boards; knowingly misrepresent, exaggerate, or downplay areas of scientific uncertainty; or otherwise violate the USEPA’s Scientific Integrity Policy. The Recipient must refrain from acts of research misconduct, including publication or reporting, as described in USEPA’s Policy and Procedures for Addressing Research Misconduct, Section 9.C, and must ensure scientific findings are generated and disseminated in a timely and transparent manner, including scientific research performed by contractors and subcontractors.
v. The Recipient agrees to comply with the Animal Welfare Act of 1966 (7 USC 2131-2156).
Recipient also agrees to abide by the “U.S. Government Principles for the Utilization and Care of Vertebrate Animals used in Testing, Research, and Training,” available at http://grants.nih.gov/grants/olaw/references/phspol.htm#USGovPrinciples. vi. The Recipient certifies that no Project Funds will be used on:
a. Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities), telecommunications or video surveillance equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);
b. Telecommunications or video surveillance services produced by such entities or using such equipment;
c. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country; or
d. Other telecommunications or video surveillance services or equipment in violation of 2 CFR 200.216. vii. The Recipient agrees to ensure that if the Project includes lead service line replacement, each lead service line replaced using Project Funds must be replaced in its entirety, unless the remaining portion of that service line has already been replaced or is concurrently being replaced with another funding source.
viii. The Recipient agrees to comply with all applicable federal environmental cross-cutters, including the following:
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit C
a. Archeological and Historic Preservation Act (16 U.S.C. § 469; 54 U.S.C. §§ 312501- 312508)
b. Clean Air Act (42 U.S.C. § 7401)
c. Coastal Barriers Resources Act (16 U.S.C. § 3501 et seq.) d. Coastal Zone Management Act (16 U.S.C. § 1451 et seq.) e. Endangered Species Act (16 U.S.C. § 1531 et seq.)
f. Farmland Protection Policy Act (7 U.S.C. § 4201 et seq.) g. Floodplain Management [Executive Order 11988 (1977), as amended by Executive Order No. 12148 (1979)]
h. Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. § 1801 et seq.)
i. National Historic Preservation Act (54 U.S.C. §§ 300101 et seq.) j. Sole Source Aquifer, section 1424(e) of Safe Drinking Water Act, 42 U.S.C. 300h3(e) k. Wetlands Protection – Executive Order No. 11990 (1977), as amended by Executive Order No. 12608 (1997)
l. Wild and Scenic Rivers Act (16 U.S.C. § 1271 et seq.) City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit D
EXHIBIT D – SPECIAL CONDITIONS
D.1 ENVIRONMENTAL
1. Per informal consultation between the State Water Board and the Juaneno Band of Mission Indians Acjachemen Nation - Belardes and the Gabrielino Tongva Indians of California Tribal Council, the Recipient shall implement the following measures:
a. The Recipient shall allow the Juaneno Band of Mission Indians Acjachemen Nation - Belardes and the Gabrielino Tongva Indians of California Tribal Council (the Tribes) to monitor all ground disturbing activities.
b. The Recipient shall notify the Tribes a minimum of two weeks prior to the commencement of any ground disturbing activities so they can arrange to have the monitors present. The on-site monitoring shall end when the ground disturbing activities are complete or the Tribal representatives/monitors in agreement have indicated that monitoring is no longer necessary.
2. The Recipient shall make no changes to the Project, construction area, or special conditions, without obtaining the appropriate and necessary prior approval(s) from the State Water Board.
3. The Recipient shall provide notice to the DWSRF Program at [email protected] or (916) 327-9978 within 24 hours of the discovery of any potential tribal cultural resource and/or archaeological or historical resource and shall notify the Division promptly upon the discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. For additional requirements, please refer to Exhibit C of this Agreement.
REPORTING TO THE STATE WATER BOARD
1. In the Recipient’s Progress Reports and the Project Completion Report, submitted pursuant to this Agreement, the Recipient shall include a discussion of the status of its compliance with all environmental measures identified in this Exhibit D, with separate sections clearly labeled with section titles, discussing the status of Recipient’s compliance with:
a. Informal consultation with the Juaneno Band of Mission Indians Acjachemen Nation - Belardes and the Gabrielino Tongva Indians of California Tribal Council, which includes the following:
• The Recipient shall allow the Juaneno Band of Mission Indians Acjachemen Nation - Belardes and the Gabrielino Tongva Indians of California Tribal Council (the Tribes) to monitor all ground disturbing activities.
• The Recipient shall notify the Tribes a minimum of two weeks prior to the commencement of any ground disturbing activities so they can arrange to have the monitors present. The on-site monitoring shall end when the ground disturbing activities are complete or the Tribal representatives/monitors in agreement have indicated that monitoring is no longer necessary.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit E
D.2 RUSSIAN SANCTIONS
Executive Order N-6-22 — Russian Sanctions.
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State Water Board determine Recipient is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State Water Board shall provide Recipient advance written notice of such termination, allowing Recipient at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State Water Board.
The Recipient represents that the Recipient is not a target of economic sanctions imposed in response to Russia’s actions in Ukraine imposed by the United States government or the State of California. The Recipient is required to comply with the economic sanctions imposed in response to Russia’s actions in Ukraine, including with respect to, but not limited to, the federal executive orders identified in California Executive Order N-6-22, located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-RussiaUkraine-Executive-Order.pdf and the sanctions identified on the United States Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-andcountry-information/ukraine-russia-related-sanctions). The Recipient is required to comply with all applicable reporting requirements regarding compliance with the economic sanctions, including, but not limited to, those reporting requirements set forth in California Executive Order N-6-22 for all Recipients with one or more agreements with the State of California with an aggregated value of Five Million Dollars ($5,000,000) or more. Notwithstanding any other provision in this Agreement, failure to comply with the economic sanctions and all applicable reporting requirements may result in termination of this Agreement.
For Recipients with an aggregated agreement value of Five Million Dollars ($5,000,000) or more with the State of California, reporting requirements include, but are not limited to, information related to steps taken in response to Russia’s actions in Ukraine, including but not limited to:
1. Desisting from making any new investments or engaging in financial transactions with Russian institutions or companies that are headquartered or have their principal place of business in Russia;
2. Not transferring technology to Russia or companies that are headquartered or have their principal place of business in Russia; and
3. Direct support to the government and people of Ukraine.
EXHIBIT E – PAYMENT SCHEDULE
See the attached preliminary Payment Schedule. The final Payment Schedule will be forwarded to the Recipient after all disbursements have been paid and construction of the Project has been completed.
California DWSRF Payment Schedule
Project No. 3010041-001C - Seal Beach, City of
Agreement: - based on Actual + Projected Disbursements
LCWA Watermain Lining Project
Interest rate: 2.10000%
Principal is paid over: 30 Years
Ref
Num
Due
Date
Date
Received Principal Payment
Interest
Rate%
Interest
Payment
Total P and I
Payment
Total
Payment
Ending
Balance
CPI
Interest
1 12/31/2029 0.00 2.100 170,889.55 170,889.55 170,889.55 3,175,000.00 0.00 2 12/31/2030 81,665.55 2.100 66,675.00 148,340.55 148,340.55 3,093,334.45 0.00 3 12/31/2031 83,380.53 2.100 64,960.02 148,340.55 148,340.55 3,009,953.92 0.00 4 12/31/2032 85,131.52 2.100 63,209.03 148,340.55 148,340.55 2,924,822.40 0.00 5 12/31/2033 86,919.28 2.100 61,421.27 148,340.55 148,340.55 2,837,903.12 0.00 6 12/31/2034 88,744.58 2.100 59,595.97 148,340.55 148,340.55 2,749,158.54 0.00 7 12/31/2035 90,608.22 2.100 57,732.33 148,340.55 148,340.55 2,658,550.32 0.00 8 12/31/2036 92,510.99 2.100 55,829.56 148,340.55 148,340.55 2,566,039.33 0.00 9 12/31/2037 94,453.72 2.100 53,886.83 148,340.55 148,340.55 2,471,585.61 0.00 10 12/31/2038 96,437.25 2.100 51,903.30 148,340.55 148,340.55 2,375,148.36 0.00 11 12/31/2039 98,462.43 2.100 49,878.12 148,340.55 148,340.55 2,276,685.93 0.00 12 12/31/2040 100,530.15 2.100 47,810.40 148,340.55 148,340.55 2,176,155.78 0.00 13 12/31/2041 102,641.28 2.100 45,699.27 148,340.55 148,340.55 2,073,514.50 0.00 14 12/31/2042 104,796.75 2.100 43,543.80 148,340.55 148,340.55 1,968,717.75 0.00 15 12/31/2043 106,997.48 2.100 41,343.07 148,340.55 148,340.55 1,861,720.27 0.00 16 12/31/2044 109,244.42 2.100 39,096.13 148,340.55 148,340.55 1,752,475.85 0.00 17 12/31/2045 111,538.56 2.100 36,801.99 148,340.55 148,340.55 1,640,937.29 0.00 18 12/31/2046 113,880.87 2.100 34,459.68 148,340.55 148,340.55 1,527,056.42 0.00 19 12/31/2047 116,272.37 2.100 32,068.18 148,340.55 148,340.55 1,410,784.05 0.00 20 12/31/2048 118,714.08 2.100 29,626.47 148,340.55 148,340.55 1,292,069.97 0.00 21 12/31/2049 121,207.08 2.100 27,133.47 148,340.55 148,340.55 1,170,862.89 0.00 22 12/31/2050 123,752.43 2.100 24,588.12 148,340.55 148,340.55 1,047,110.46 0.00 23 12/31/2051 126,351.23 2.100 21,989.32 148,340.55 148,340.55 920,759.23 0.00 24 12/31/2052 129,004.61 2.100 19,335.94 148,340.55 148,340.55 791,754.62 0.00 25 12/31/2053 131,713.70 2.100 16,626.85 148,340.55 148,340.55 660,040.92 0.00 26 12/31/2054 134,479.69 2.100 13,860.86 148,340.55 148,340.55 525,561.23 0.00 27 12/31/2055 137,303.76 2.100 11,036.79 148,340.55 148,340.55 388,257.47 0.00 28 12/31/2056 140,187.14 2.100 8,153.41 148,340.55 148,340.55 248,070.33 0.00 29 12/31/2057 143,131.07 2.100 5,209.48 148,340.55 148,340.55 104,939.26 0.00 30 12/31/2058 104,939.26 2.100 2,203.72 107,142.98 107,142.98 0.00 0.00 3,175,000.00 1,256,567.93 4,431,567.93 4,431,567.93 0.00
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit F
EXHIBIT F – TAX CERTIFICATE
F.1 Purpose.
The purpose of this Exhibit F is to establish the reasonable expectations of the Recipient regarding the Project and the Project Funds, and is intended to be and may be relied upon for purposes of Sections 103, 141 and 148 of the Code and as a certification described in Section 1.148-2(b)(2) of the Treasury Regulations. This Exhibit F sets forth certain facts, estimates and circumstances which form the basis for the Recipient’s expectation that neither the Project nor the Bond Funded Portion of the Project Funds is to be used in a manner that would cause the Obligation to be classified as “arbitrage bonds” under Section 148 of the Code or “private activity bonds” under Section 141 of the Code.
F.2 Tax Covenant.
The Recipient agrees that it will not take or authorize any action or permit any action within its reasonable control to be taken, or fail to take any action within its reasonable control, with respect to the Project which would result in the loss of the exclusion of interest on the Bonds from gross income for federal income tax purposes under Section 103 of the Code.
F.3 Governmental Unit.
The Recipient is a state or local governmental unit as defined in Section 1.103-1 of the Treasury Regulations or an instrumentality thereof (a "Governmental Unit") and is not the federal government or any agency or instrumentality thereof.
F.4 Financing of a Capital Project.
The Recipient will use the Project Funds to finance capital expenditures it has incurred or will incur for the construction, reconstruction, installation or acquisition of the Project in accordance with the terms of this Agreement. Such expenditures shall not have previously been financed with the proceeds of any other issue of indebtedness except for interim financing by the Recipient, the date of maturity, prepayment or redemption of which is within thirty (30) days of the date of disbursement of Project Funds under this Agreement. All Project Funds shall be allocated to expenditures by the Recipient within thirty (30) days of the date of disbursement, including (if at all) Project Funds allocated to repay interim financing of the Recipient. For purposes of this Section F.4, “interim financing” means notes, commercial paper, loans, lines of credit and other forms of short-term borrowing. F.5 Ownership and Operation of Project.
The Recipient exclusively owns and, except as provided in Section F.12 hereof, operates the Project.
F.6 Temporary Period.
The Recipient reasonably expects that at least eighty-five percent (85%) of the Bond Funded Portion of the Project Funds will be allocated to expenditures for the Project within three (3) years of the earlier of the effective date of this Agreement or the date the Bonds are issued ("Applicable Date"). The Recipient has incurred, or reasonably expects that it will incur within six (6) months of the Applicable Date, a substantial binding obligation (i.e., not subject to contingencies within the control of the Recipient or a related party) to a third party to expend at least five percent (5%) of the Bond Funded Portion of the Project Funds on Project Costs. The completion of acquisition, construction, improvement and equipping City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit F
of the Project and the allocation of the Bond Funded Portion of the Project Funds to Project Costs will proceed with due diligence.
F.7 Working Capital.
No operational expenditures of the Recipient or any related entity are being, have been or will be financed or refinanced with Project Funds.
F.8 Expenditure of Proceeds.
The Bond Funded Portion of the Project Funds shall be used exclusively for the following purposes: (i) Reimbursement Expenditures (as defined in Section F.20 below), (ii) Preliminary Expenditures (as defined in Section F.20 below) in an aggregate amount not exceeding twenty percent (20%) of the Bond Funded Portion of the Project Funds, (iii) capital expenditures relating to the Project originally paid by the Recipient on or after the date hereof, (iv) interest on the Obligation through the later of three (3) years after the Applicable Date or one (1) year after the Project is placed in service, and (v) initial operating expenses directly associated with the Project in the aggregate amount not more than five percent (5%) of the Bond Funded Portion of the Project Funds.
F.9 Private Use and Private Payments.
No portion of the Project Funds or the Project is being, has been or will be used in the aggregate for any activities that constitute a Private Use (as defined below). No portion of the principal of or interest with respect to the Payments will be secured by any interest in property (whether or not the Project) used for a Private Use or in payments in respect of property used for a Private Use, or will be derived from payments in respect of property used for a Private Use. "Private Use" means any activity that constitutes a trade or business that is carried on by persons or entities, other than a Governmental Unit. The leasing of the Project or the access by or the use of the Project by a person or entity other than a Governmental Unit on a basis other than as a member of the general public shall constitute a Private Use. Use by or on behalf of the State of California or any of its agencies, instrumentalities or subdivisions or by any local Governmental Unit and use as a member of the general public will be disregarded in determining whether a Private Use exists. Use under an arrangement that conveys priority rights or other preferential benefits is generally not use on the same basis as the general public. Arrangements providing for use that is available to the general public at no charge or on the basis of rates that are generally applicable and uniformly applied do not convey priority rights or other preferential benefits. For this purpose, rates may be treated as generally applicable and uniformly applied even if (i) different rates apply to different classes of users, such as volume purchasers, if the differences in rates are customary and reasonable; or (ii) a specially negotiated rate arrangement is entered into, but only if the user is prohibited by federal law from paying the generally applicable rates, and the rates established are as comparable as reasonably possible to the generally applicable rates. An arrangement that does not otherwise convey priority rights or other preferential benefits is not treated, nevertheless, as general public use if the term of the use under the arrangement, including all renewal options, is greater than 200 days. For this purpose, a right of first refusal to renew use under the arrangement is not treated as a renewal option if (i) the compensation for the use under the arrangement is redetermined at generally applicable, fair market value rates that are in effect at the time of renewal; and (ii) the use of the financed property under the same or similar arrangements is predominantly by natural persons who are not engaged in a trade or business.
F.10 No Sale, Lease or Private Operation of the Project.
The Project (or any portion thereof) will not be sold or otherwise disposed of, in whole or in part, to any person who is not a Governmental Unit prior to the final maturity date of the Obligation. The Project will not be leased to any person or entity that is not a Governmental Unit prior to the final maturity date of the Obligation. Except as permitted under Section F.12 hereof, the Recipient will not enter any contract or City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit F
arrangement or cause or permit any contract or arrangement to be entered with persons or entities that are not Governmental Units if that contract or arrangement would confer on such persons or entities any right to use the Project on a basis different from the right of members of the general public. The contracts or arrangements contemplated by the preceding sentence include but are not limited to management contracts, take or pay contracts or put or pay contracts, and capacity guarantee contracts.
F.11 No Disproportionate or Unrelated Use.
No portion of the Project Funds or the Project is being, has been, or will be used for a Private Use that is unrelated or disproportionate to the governmental use of the Project Funds.
F.12 Management and Service Contracts.
The Recipient represents that, as of the date hereof, it is not a party to any contract, agreement or other arrangement with any persons or entities engaged in a trade or business (other than Governmental Units) that involve the management or operation of property or the provision of services at or with respect to the Project that does not comply with the standards of the Treasury Regulations, or Revenue Procedure 2017-13, as applicable. The Recipient represents that it will not be party to any such contract, agreement or arrangement with any person or entity that is not a Governmental Unit for the management of property or the provision of services at or with respect to the Project, while the Obligation (including any obligation or series thereof issued to refund the Obligation, as the case may be) is outstanding, except: (a) with respect to any contract, agreement or arrangement that does not constitute “private business use” of the Project under Code §141(b), or (b) with respect to any contract, agreement or arrangement that complies with (i) Revenue Procedure 97-13, 1997-1 C.B. 632, as amended by Revenue Procedure 2001-39, 2001- 2 C.B. 38, and as amplified by Notice 2014-67, with respect to contracts entered into before August 18, 2017 and not materially modified or extended after August 18, 2017, or (ii) Revenue Procedure 2017-13, with respect to contracts entered into or materially modified or extended on or after August 18, 2017, or (c) with respect to any contract, agreement or arrangement that does not give rise to use of the Bond Funded Portion of the Project Funds or the Project by a non-Governmental Unit of more than the amount of such non-qualified use permitted by the Code, or (d) in the event that the Recipient receives an opinion of counsel, satisfactory to the State Water Board and the Bank and expert in the issuance of state and local government bonds the interest on which is excluded from gross income under Section 103 of the Code (“Nationally-Recognized Bond Counsel”), that such contract, agreement or arrangement will not adversely affect the exclusion of the interest on the Obligation from gross income for federal income taxation purposes.
F.13 No Disposition of Financed Property.
As of the date hereof, the Recipient does not expect to sell or otherwise dispose of any portion of the Project, in whole or in part, prior to the final maturity date of the Obligation.
F.14 Useful Life of Project.
As of the date hereof, the Recipient reasonably expects that the economic useful life of the Project, commencing at Project Completion, will be at least equal to the term of this Agreement, as set forth in Exhibit A hereto.
F.15 Payments.
Payments generally are expected to be derived from assessments, taxes, fees, charges or other current Revenues of the Recipient in each year, and such current Revenues are expected to equal or exceed the Payments during each payment period. Any amounts accumulated in a sinking fund or bona fide debt service fund to pay Payments (whether or not deposited to a fund or account established by the Recipient) will be disbursed to pay Payments within thirteen months of the initial date of accumulation or City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit F
deposit. Any such fund used for the payment of Payments will be depleted once a year except for a reasonable carryover amount not exceeding the greater of earnings on such fund or one-twelfth of the Payments in either case for the immediately preceding year.
F.16 No Other Replacement Proceeds.
The Recipient will not use any of the Bond Funded Portion of the Project Funds to replace or substitute other funds of the Recipient that were otherwise to be used to finance the Project or which are or will be used to acquire securities, obligations or other investment property reasonably expected to produce a yield that is materially higher than the yield on the Bonds.
F.17 No Sinking or Pledged Fund.
Except as set forth in Section F.18 below, the Recipient will not create or establish any sinking fund or pledged fund which will be used to pay Payments on the Obligation within the meaning of Section 1.148- 1(c) of the Treasury Regulations. If any sinking fund or pledged fund comes into being with respect to the Obligation before the Obligation has been fully retired which may be used to pay the Payments, the Recipient will invest such sinking fund and pledged fund moneys at a yield that does not exceed the yield on the Bonds.
F.18 Reserve Amount.
The State Water Board requires that the Recipient maintain and fund a separate account in an amount equal to one (1) year of debt service with respect to the Obligation (the “Reserve Amount”) as set forth in Exhibit B. The Recipient represents that the Reserve Amount is and will be available to pay debt service with respect to the Obligation, if and when needed. The Reserve Amount consists solely of revenues of the Recipient and does not include any proceeds of any obligations the interest on which is excluded from gross income for federal income tax purposes or investment earnings thereon. The aggregate of the Reserve Amount, up to an amount not exceeding the lesser of (i) ten percent of the aggregate principal amount of the Obligation, (ii) the maximum annual debt service with respect to the Obligation, or (iii) 125 percent of the average annual debt service with respect to the Obligation, will be treated as a reasonably required reserve fund.
F.19 Reimbursement Resolution.
The “reimbursement resolution” adopted by the Recipient is incorporated herein by reference.
F.20 Reimbursement Expenditures.
Reimbursements are disallowed, except as specifically authorized in Exhibit B or Exhibit D of this Agreement. To the extent so authorized, a portion of the Bond Funded Portion of the Project Funds may be applied to reimburse the Recipient for Project Costs paid before the date hereof, so long as the Project Cost was (i) not paid prior to sixty (60) days before the Recipient’s adoption of a declaration of official intent to finance the Project, (ii) not paid more than eighteen (18) months prior to the date hereof or the date the Project was placed-in-service, whichever is later, and (iii) not paid more than three (3) years prior to the date hereof (collectively, “Reimbursement Expenditures”), unless such cost is attributable to a “preliminary expenditure.” Preliminary expenditure for this purpose means architectural, engineering, surveying, soil testing and similar costs incurred prior to the commencement of construction or rehabilitation of the Project, but does not include land acquisition, site preparation and similar costs incident to the commencement of acquisition, construction or rehabilitation of the Project. Preliminary expenditures may not exceed 20% of the Bond Funded Portion of the Project Funds.
F.21 Change in Use of the Project.
City of Seal Beach
Agreement No.: D2502060
Project No.: 3010041-001C
Exhibit F
The Recipient reasonably expects to use all of the Bond Funded Portion of the Project Funds and the Project for the entire stated term to maturity of the Obligation. Absent an opinion of NationallyRecognized Bond Counsel to the effect that such use of the Bond Funded Portion of the Project Funds will not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section 103 of the Code, the Recipient will use the Bond Funded Portion of the Project Funds and the Project solely as set forth in this Agreement.
F.22 Rebate Obligations.
If the Recipient satisfies the requirements of one of the spending exceptions to rebate specified in Section
1.148-7 of the Treasury Regulations, amounts earned from investments, if any, acquired with the Bond Funded Portion of the Project Funds will not be subject to the rebate requirements imposed under Section 148(f) of the Code. If the Recipient fails to satisfy such requirements for any period, it will notify the State Water Board and the Bank immediately and will comply with the provisions of the Code and the Treasury Regulations at such time, including the payment of any rebate amount calculated by the State Water Board or the Bank.
F.23 No Federal Guarantee.
The Recipient will not directly or indirectly use any of the Bond Funded Portion of the Project Funds in any manner that would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code, taking into account various exceptions including any guarantee related to investments during an initial temporary period until needed for the governmental purpose of the Bonds, investments as part of a bona fide debt service fund, investments of a reasonably required reserve or replacement fund, investments in bonds issued by the United States Treasury, investments in refunding escrow funds or certain other investments permitted under the Treasury Regulations.
F.24 Amendments.
The provisions in this Exhibit may be amended, modified or supplemented at any time to reflect changes in the Code upon obtaining written approval of the State Water Board and the Bank and an opinion of Nationally-Recognized Bond Counsel to the effect that such amendment, modification or supplement will not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section 103 of the Code.
F.25 Reasonable Expectations. The Recipient warrants that, to the best of its knowledge, information and belief, and based on the facts and estimates as set forth in the tax covenants in this Exhibit, the expectations of the Recipient as set forth in this Exhibit are reasonable. The Recipient is not aware of any facts or circumstances that would cause it to question the accuracy or reasonableness of any representation made in the provisions in this Exhibit.
F.26 Assignment.
The Recipient consents to any pledge, sale, or assignment to the Bank or a trustee for the benefit of the owners of the Bonds, if any, at any time of any portion of the State Water Board's estate, right, title, and interest and claim in, to and under this Agreement and the right to make all related waivers and agreements in the name and on behalf of the State Water Board, as agent and attorney-in-fact, and to perform all other related acts which are necessary and appropriate under this Agreement, if any, and the State Water Board's estate, right, title, and interest and claim in, to and under this Agreement to Payments (but excluding the State Water Board's rights to Additional Payments and to notices, opinions and indemnification under each Obligation).
LCWA Watermain Lining
(CIP WT2103)
DWSRF Loan Agreement
CITY OF SEAL BEACH
September 14, 2026
WHAT TO EXPECT
• Project Recap
• DWSRF Loan & Key Terms
• Project Budget & Loan Amount
PROJECT OVERVIEW
• Rehabilitates an aging 18-inch transmission main through the Los Cerritos Wetlands that provides critical system redundancy and has a history of main breaks.
• Uses trenchless relining technology to minimize disturbance within an environmentally sensitive and culturally significant area. • Construction coordinated with the concurrent LCWA wetlands restoration project.
• Construction contract awarded to T.E. Roberts, Inc. on June 22, 2026. • Pre-mobilization, submittals, and permitting underway; Fall 2026 mobilization.
PROJECT LOCATION
TIMELINE
Preliminary
design started
in 2020
Geotechnical
CDP started in
2021
Environmental
Document +
Permitting
started in 2022.
CDP issued in
2025
SRF Loan
application
started in 2022.
Rate approval
in 2025. NTP in
2026
Updated
design in 2026
for
construction
March 18 to
May 21, 2026
Public Bidding
Period
June 2026
Bid Review +
Council Award
July 2026
Submittals &
Permitting
Late Early Fall
Mobilization
70 Working
Days
We Are Here:
SRF Financing
Agreement
• Initial Application: 2022
• Administered By: State Water Resources Control Board
• Purpose: Favorable financing for eligible drinking-water infrastructure
• Agreement: No. D2502060
DWSRF FINANCING AGREEMENT
Financing Term Provisions
Initial Amount $3,175,000
Interest Rate 2.1%
Repayment Term 30 years
Repayment Source Water Enterprise Fund revenues
Disbursement Method Reimbursement of eligible project expenditures Repayment
Annual interest payments during construction and until one year after project completion; principal and interest payments begin one year after completion.
Prepayment Prepayment requires prior written consent from the Water Board.
Administrative Service
Charge/Drinking Water Small
Community Emergency Grant
Fund Charge
If applicable, charged in lieu of, and not in addition to, the stated interest obligation, as provided in the Agreement.
PROJECT BUDGET & FUNDING
Description Amount
CONSTRUCTION COST
Construction Support $234,976
Construction + Contingency 3,530,435
TOTAL Construction Cost $3,765,411
LOAN AGREEMENT
Loan Agreement $3,175,000
Final Budget Approval (FBA) Request $590,411
TOTAL Not-to-Exceed Financing $ 3,765,411
RECOMMENDATIONS
1. Approving the California State Water Resources Control Board Agreement No. D2502060 in the amount of $3,175,000 for the LCWA Watermain Lining – Trenchless Technology Improvements, CIP WT2103; and,
2. Approving an increase to the loan amount up to $3,765,411 if approved by the Water Board; and,
3. Authorizing the City Manager to execute the Agreement; accept, receive, and utilize the Agreement funding on behalf of the City; and submit a Final Budget Approval to the Water Board requesting an increase the total financing amount to $3,765,411.
THANK YOU!