Agenda packet — Victorville City Council, January 21, 2025 (part 3 of 4)

the Custodian Requirements set forth in the elections on Page 1 herein. If a party or its Custodian is not eligible, or subsequently becomes ineligible, to hold Posted Collateral pursuant to this Section, then it shall be considered a

“Downgraded Party” or a “Downgraded Custodian”, as the case may be, and Posted Collateral shall be maintained in accordance with Paragraph 8(e).

(iii) Upon Notice by the Secured Party to the Pledging Party of the appointment of a Custodian, the Pledging Party’s obligations to make any Transfer will be discharged by making the Transfer to that Custodian. The holding of Cash by a Custodian will be deemed to be the holding of Cash by the Secured Party for which the Custodian is acting. The Secured Party will be liable for the acts or omissions of its Custodian to the same extent that the Secured Party would be liable hereunder for its own acts or omissions.

(b) Use of Cash . Notwithstanding the provisions of applicable law, if the Secured Party is eligible to hold cash in accordance with Paragraph 8(a), is not a Defaulting Party and no Early Termination Date has occurred or been designated by the Pledging Party as a result of an Event of Default with respect to the Secured Party, then the Secured Party shall have the right to sell, pledge, rehypothecate, assign, invest, use, commingle or otherwise dispose of, or otherwise use in its business any Cash it holds, free from any claim or right of any nature whatsoever of the Pledging Party, including any equity or right of redemption by the Pledging Party.

(c) Interest Payments on Cash . So long as no Event of Default with respect to the Pledging Party has occurred and is continuing, and no Early Termination Date (for which any unsatisfied payment obligations of the Pledging Party exist) has occurred or been designated as the result of an Event of Default with respect to the Pledging Party and to the extent that an obligation to Transfer Posted Collateral would not be created or increased by the Transfer, the Secured Party will upon written request Transfer to the Pledging Party, in lieu of any interest or other amounts paid or deemed to have been paid with respect to the Cash (all of which may be retained by the Secured Party), the Interest Amount on the third Business Day of each calendar month. On or after the occurrence of an Event of Default with respect to the Pledging Party or an Early Termination Date as a result of an Event of Default with respect to the Pledging Party, the Secured Party shall retain any such Interest Amount as additional Eligible Collateral hereunder until the obligations of the Pledging Party under the Base Contract have been satisfied.

(d) Care of Cash . Without limiting the Secured Party’s rights under Paragraph 8(b), the Secured Party will exercise reasonable care to assure the safe custody of all Cash held by it as Posted Collateral to the extent required by applicable law, and in any event the Secured Party will be deemed to have exercised reasonable care if it exercises at least the same degree of care as it would exercise with respect to its own property. Except as specified in the preceding sentence, the Secured Party will have no duty with respect to Cash, including, without limitation, any duty to enforce or preserve any rights pertaining thereto.

(e) Holding of Cash by a Custodian. The provisions of Paragraph 8(b) will apply to the parties; provided, however, that if a party or its Custodian is not eligible to hold Cash pursuant to Paragraph 8(a) (the event that caused it or its Custodian, if any, to be ineligible to hold Cash shall be a “Credit Rating Event”; if such Credit Rating Event occurs with respect to a party, such party shall be the “Downgraded Party”; and if such Credit Rating Event occurs with respect to a party’s Custodian, such Custodian shall be the “Downgraded Custodian”), then: (1) the provisions of Paragraph 8(b) will not apply with respect to the Downgraded Party as the Secured Party for so long as either the Secured Party or its Custodian, if any, remain a Downgraded Party or a Downgraded Custodian, respectively, and (2) the Downgraded Party shall be required to deliver (or cause the Downgraded Custodian to deliver, as the case may be) by the Close of Business on the second (2 nd) Business Day following such Credit Rating Event all Cash in its possession or held on its behalf (i) to a Custodian that meets the Custodian Requirements, and (ii) to a segregated, safekeeping or custody account (“Collateral Account”) within such Custodian with the title of the Collateral Account indicating that the property contained therein is being held as Posted Collateral for the Downgraded Party; provided, that, if the Credit Rating Event occurs with respect to a party’s Custodian that is holding Posted Collateral on behalf of such party, then such Downgraded Custodian may also deliver such Posted Collateral to such party if such party is not a Downgraded Party, and (iii) the parties agree to enter into a control agreement (“Control Agreement”) with the Custodian maintaining the Collateral Account. The Control Agreement shall be in such form as shall be reasonably acceptable to each of the parties and shall provide for such items as the timing and release of the funds in the Collateral Account and the investment and reinvestment of Cash held in the Collateral Account. The Control Agreement shall further provide that Custodian shall serve as Custodian with respect to the Posted Collateral in the Collateral Account, and shall hold such Posted Collateral in accordance with the terms of this CSA and for the security interest of the Downgraded Party and, subject to such security interest, for the ownership of the non - Downgraded Party. The parties further agree that notwithstanding the fact that Cash is being held by a Custodian in a Collateral Account pursuant to a Control Agreement, the Downgraded Party shall be required to make interest payments to the non-Downgraded Party in an amount equal to the Interest Amount in accordance with the provisions of Paragraph 8(c).

Paragraph 9. Notices

(a) “Notice” shall mean a notice or other communication in respect of this CSA. Notice may be given in any manner set forth below to the address or number or in accordance with the electronic messaging system details provided on

Page 1 ends

(i) if in writing and delivered in person or by courier, on the Business Day it is delivered;

(ii) if sent by facsimile transmission, on the date that transmission is received by the recipient in legible form (which may be evidenced by a transmission report generated by the sender's facsimile machine) unless such facsimile transmission is received on a non -Business Day or after the Close of Business then such facsimile shall be deemed to have been received on the next following Business Day.

(iii) if sent by certified or registered mail or the equivalent (return receipt requested), on the Business Day that mail is delivered or its delivery is attempted; or

(iv) if sent by electronic messaging system, on the date that electronic message is received, unless such electronic message is received on a non -Business Day or after the Close of Business, then such electronic message shall be deemed to have been received on the next following Business Day.

(b) Any other Notice, including but not limited to, Notice of an Event of Default, must be given pursuant to Section 9 of the Base Contract.

Paragraph 10. Credit Support Default

(a) A “Credit Support Default" shall exist with respect to a party (the "Defaulting Party") if:

(i) a party fails (or fails to cause its Custodian, as applicable) to make, when due, any Transfer of Eligible Collateral, Posted Collateral or the Interest Amount, as applicable, required to be made by it, and such failure continues for one (1) Business Day after Notice of that failure is provided to that party; or

(ii) a party fails to comply with or perform any material agreement or obligation provided for in this CSA, and such failure continues for one (1) Business Day after Notice of that failure is provided to that party; or

(iii) a party or its Custodian fails to comply with any of the obligations under Paragraph 8 herein and the failure continues for one (1) Business Day after notice of the failure is given to that party.

(b) Credit Support Default shall constitute and have the effect of an Event of Default set forth in Section 10.2 (vi) of the Base Contract.

Paragraph 11. Representations and Warranties.

Each party continuously represents and warrants to the other party that: (a) it has the power and authority under the law of the jurisdiction of its organization or incorporation and under its organizational and constituent documents to grant to the Secu red Party a valid, enforceable, first-priority security interest in, and lien on, all Posted Collateral (other than Letters of Credit) that it Transfers as the Pledging Party, and has taken all necessary actions to authorize the granting and perfection of that securit y interest and lien; (b) as of each date on which it, as the Pledging Party, Transfers Eligible Collateral to the Secured Party or to any agent of the Secured Party for the benefit of the Secured Party (or, in the case of after -acquired Posted Collateral, at the time the Secured Party or its agent acquires rights therein), it has title to, and will be the sole owner of such Eligible Co llateral, free and clear of any security interest, lien, pledge, charge, encumbrance, or other interests or restrictions other than the security interest granted to the Secured Party hereby; (c) the Secured Party will have a valid and perfected first -priority security interest in, and lien on, all Posted Collateral (other than Letters of Credit) upon receipt thereof; (d) the perform ance by it of its obligations under this CSA will not result in the creation of any security interest, lien or other encumbrance on a ny Posted Collateral other than the security interest and lien granted pursuant to this CSA; and (e) in connection with the deli very, issuance, renewal, substitution, or increase (as the case may be) which constitutes a Transfer of a Letter of Credit, such Le tter of Credit is the legal, valid and binding obligation of the Issuer thereof, enforceable in accordance with its terms.

Paragraph 12. Certain Rights and Remedies.

(a) Secured Party’s Rights and Remedies . If at any time (i) an Event of Default with respect to the Pledging Party has occurred and is continuing, or (ii) an Early Termination Date has occurred or been designated as a result of an Event of Default with respect to the Pledging Party, then the Secured Party may do any one or more of the following: (x) exercise any of the rights and remedies of a secured party with respect to the Posted Collateral, including any such rights and remedies under law then in effect; (y) exercise its rights of setoff against any and all property of the Pledging Party in the possession of the Secured Party or its agent; and (z) draw on any outstanding Letter of Credit issued for its benefit under its terms and this CSA. The Secured Party shall either (y) apply the proceeds of the

Posted Collateral realized upon the exercise of any such rights or remedies to reduce the Pledging Party's obligations under the Base Contract or this CSA (the Pledging Party remaining liable for any amounts owing to the Secured Party after such application), subject to the Secured Party’s obligation to return any surplus proceeds remaining after such obligations are satisfied in full and/or (z) hold such proceeds as collateral security for the Pledging Party's obligations under the Base Contract or this CSA, subject to the Secured Party’s obligation to return the proceeds after such obligations are satisfied in full.

(b) Pledging Party's Rights and Remedies. If at any time an Early Termination Date has occurred or been designated as the result of an Event of Default with respect to the Secured Party, then: (i) the Secured Party will be obligated immediately to Transfer all Posted Collateral and the Interest Amount, if any, to the Pledging Party; and (ii) the Pledging Party may do any one or more of the following: (x) exercise any of the rights and remedies of a pledgor with respect to the Posted Collateral, including any such rights and remedies under law then in effect; (y) to the extent that the Posted Collateral or the Interest Amount is not Transferred to the Pledging Party as required in (i) above, setoff amounts payable by the Pledging Party to the Secured Party against the Posted Collateral held by the Secured Party or to the extent its rights to setoff are not exercised, withhold payment of any remaining amounts payable by the Pledging Party, up to the value of any remaining Posted Collateral held by the Secured Party, until the Posted Collateral is Transferred to the Pledging Party; and/or (z) exercise rights and remedies available to the Pledging Party under the terms of any Letter of Credit.

Paragraph 13. General.

(a) To secure its obligations under the Base Contract and all outstanding transactions, each party, as the Pledging Party, hereby grants to the other party, as the Secured Party, a present and continuing first -priority security interest in, and lien on (and right of setoff against), all Posted Collateral (other than Letters of Credit) Transferred to the Secured Party hereunder. Each party agrees to take such action as the other party reasonably requires in order to perfect or maintain the other party’s first -priority continuing security interest in, and lien on (and right of setoff against), such Posted Collateral.

(b) Each party will pay its own costs and expenses in connection with performing its obligations under this CSA and neither party will be liable for any costs or expenses incurred by the other party in connection herewith.

(c) This CSA has been and is made solely for the benefit of the parties and their permitted successors and assigns, and no other entity shall acquire or have any right under or by virtue of this CSA.

(d) No failure or delay by either party hereto in exercising any right, power, privilege, or remedy hereunder shall operate as a waiver thereof.
(e) The headings in this CSA are for convenience of reference only, and shall not affect the meaning or construction of any provision thereof.

DISCLAIMER: The purposes of this CSA are to facilitate trade, avoid misunderstandings and make more definite the terms of margining arrangements related to contracts of purchase and sale of natural gas. Further, NAESB does not mandate the use of this CSA by any party. NAESB DISCLAIMS AND EXCLUDES, AND ANY USER OF THIS CSA ACKNOWLEDGES AND AGREES TO

NAESB'S DISCLAIMER OF, ANY AND ALL WARRANTIES, CONDITIONS OR REPRESENTATIONS, EXPRESS OR IMPLIED,

ORAL OR WRITTEN, WITH RESPECT TO THIS CSA OR ANY PART THEREOF, INCLUDING ANY AND ALL IMPLIED

WARRANTIES OR CONDITIONS OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY, OR FITNESS OR SUITABILITY FOR

ANY PARTICULAR PURPOSE (WHETHER OR NOT NAESB KNOWS, HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS

OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE), WHETHER ALLEGED TO ARISE BY LAW, BY REASON OF CUSTOM OR USAGE IN THE TRADE, OR BY COURSE OF DEALING. EACH USER OF THIS CSA ALSO AGREES THAT

UNDER NO CIRCUMSTANCES WILL NAESB BE LIABLE FOR ANY DIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF ANY USE OF THIS CSA.

1 Special Provisions
to the
Model Credit Support Addendum
To the Base Contract for Sale and Purchase of Gas
between
City of Victorville (“Party A”) and Morgan Stanley Capital Group Inc. (“Party B”) THESE SPECIAL PROVISIONS, as elected where appropriate, are incorporated into the Model Credit Support Addendum between Victorville and Morgan Stanley Capital Group Inc , dated as of this 20th day of December, 202 4.

These Special Provisions shall control in the event of any conflict between the terms of the CSA and these Special Provisions. All capitalized terms not otherwise defined herein shall have the meaning set forth in the Base Contract and the CSA, as applicable.

1. Paragraph 2—Defintions.
(a) The following definitions are added to Paragraph 2 of the CSA:
“’Credit Rating’ shall mean: (a) with respect to a party or its Guarantor, the long term issuer rating ; and (b) with respect to a Letter of Credit Issuer or Custodian, a long term issuer rating.” “’Guarantor’ shall mean an entity who shall be a Credit Support Provider, eligible to provide a Guaranty in accordance with the requirements set forth herein.” “’Guaranty’ shall mean a guaranty of payment and not performance, issued by a Guarantor and in form and substance reasonably acceptable to the Secured Party.” “Independent Amount” shall mean, with respect to a Party, the amount set forth below, which amount shall either be a Fixed Independent Amount, a Full Floating Independent Amount or a Partial Floating Independent Amount, or if no amount is specified, zero.
“Negative Interest Rate shall mean:

In lieu of any interest, dividends or other amounts paid or deemed to have been paid with respect to Eligible Collateral in the form of Cash (all of which may be retained by the Pledging Party and shall not be considered Eligible Collateral), and excluding any such collateral that is subject to a third party custody arrangement:
(x) if the Interest Amount for an Interest Period is a positive number, the Secured Party will transfer to the Pledging Party monthly in accordance with prevailing business practice such Interest Amount, to the extent that an Exposure as calculated by the Pledging Party would not be created or increased by that transfer and the Interest Amount or portion thereof not transferred pursuant to this subsection (x) of this Paragraph will constitute Eligible Collateral in the form of Cash and will be subject to the security interest granted under this Paragraph 2; and
(y) if the Interest Amount for an Interest Period is a negative number, the Pledging Party will transfer to the Secured Party monthly in accordance with prevailing business practice the related AV Negative Interest Amount as calculated by the Secured Party. If any Eligible Collateral is in the form of Cash in the same currency as the AV Negative Interest Amount, any AV Negative Interest Amount or portion thereof not transferred pursuant to this subsection (y) of this Paragraph (the “Untransferred Interest Amount”) will constitute a reduction of Eligible Collateral in the form of such Cash; provided that if the amount of Eligible Collateral which is comprised of such cash is less than the Untransferred Interest Amount, such reduction shall only be to the extent of the amount of such cash which is Eligible Collateral and the Pledging Party shall remain obligated to transfer the remainder of the Untransferred Interest Amount to the Secured Party.

Any reduction of Eligible Collateral in the form of Cash shall be deemed to be a transfer and shall fulfill the Pledging Party’s obligation to transfer the AV Negative Interest Amount or related portion thereof to the Secured Party.
“AV Negative Interest Amount” means, in respect of any negative Interest Amount, the absolute value of such negative Interest Amount.”
2 (b) The definition of “Interest Amount”, “Interest Period”, and “Interest Rate” in Paragraph 2 are hereby deleted and replaced with the following definitions:
“Interest Amount” means, with respect to an Interest Period, the aggregate sum of the amounts of interest calculated for each day in that Interest Period on the principal amount of Eligible Collateral in the form of cash held by the Pledgee on that day, determined by the Pledgee for each such day as follows:
(x) the amount of that cash on that day; multiplied by
(y) the Interest Rate in effect for that day; divided by (z) 360.
“Interest Period” means the period from (and including) the last Business Day on which a positive Interest Amount or AV Negative Interest Amount was transferred (or, if no positive Interest Amount or AV Negative Interest Amount has yet been transferred, the Business Day on which Eligible Collateral in the form of cash was transferred to or received by the Pledgee) to (but excluding) the Business Day on which the current positive Interest Amount or AV Negative Interest Amount is to be transferred. “Interest Rate” means the rate that is specified under CSA Elections to the Model Credit Support Addendum to the Base Contract for Sale and Purchase of Natural Gas. “Rating Agency” means S &P Global Ratings, acting through S tandard and Poor's Financial Services LLC (“S&P”) and Moody's Investors Services, Inc. (“Moody's”) and “Rating Agency” means either one of them.

2. Paragraph 4 – Transfer of Eligible Collateral. Paragraph 4 is hereby amended by adding in the third sentence the word “second” between the words “Close of Business on the” and “Business Day”.

3. Paragraph 6 —Disputed Calculations. A new Paragraph 6(c) is added as follows:

“(c) Each quotation from a Reference Market -maker will be for an amount, if any, that would be paid to the Party requesting the quotation (expressed as a negative number) or by the Party requesting the quotation (expressed as a positive number) in consideration of an agreement between such Party (taking into account this Credit Support Addendum and the existence of any Guarantor with respect to the obligations of such Party) and the quoting Reference Market -maker to enter into a transaction that would have the effect of preserving for the Party requesting the quotation the econo mic equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent) by the Parties in respect of such Transaction or group of Transactions. The costs of retaining Reference Market -makers for the purposes of this Paragraph 6 shall be borne equally by the Secured Party and the Pledging Party. The determination made by such Reference Market-makers shall be binding and conclusive on the Parties absent manifest error.”

4. Paragraph 10—Credit Support Default

(a) Add word “or” at the end of the sentence under Paragraph 10 (a)(iii).

(b) The following items are added to Paragraph 10 (a):

“(iv) any representation or warranty made by a Guarantor in connection with a Guaranty issued pursuant to this CSA or Base Contract is false or misleading in any material respect when made or when deemed made or repeated; or

(v) the failure of a Guarantor’s Guaranty to be in full force and effect (other than in accordance with its terms) prior to the satisfaction of all obligations of such Party under each Transaction without the written consent of the other Party; or

(vi) a Guarantor shall repudiate, disaffirm, disclaim, or reject, in whole or in part, or challenge the validity of any Guaranty issued pursuant to this CSA; or

3 (vii) the failure of the Guarantor to make any payments required or to perform any other material covenant or obligation in any Guaranty made in connection with the Base Contract.”

5. Paragraph 11 – Representations and Warranties . The parenthetical phrase “(other than Letters of Credit)” on lines 3 and 10 of Paragraph 11 is deleted and the parenthetical phrase “(other than Letter of Credit or Guaranties)” is substituted therefore.

6. Independent Amount.

A. Party A Independent Amount shall consist of the items selected below:

X Party A shall have a Fixed Independent Amount of $ zero. Party A will Transfer or cause to be Transferred to Party B Eligible Collateral with a Value equal to the amount of such Independent Amount (the “Fixed IA Posted Collateral”). The Fixed IA Posted Collateral shall not be reduced for so long as there are any outstanding obligations between the Parties as a result of the Agreement, and shall not be taken into account when calculating Party A’s Collateral Requirement pursuant to the Credit Support Addendum . Except as expressly set forth above, the Fixed IA Posted Collateral shall be held and maintained in accordance with, and otherwise be subject to, the Credit Support Addendum.

Party A shall have a Full Floating Independent Amount of $______________. For purposes of calculating Party A’s Collateral Requirement pursuant to the Credit Support Addendum, such Full Floating Independent Amount for Party A shall be added by Party B to its Exposure for purposes of determining Net Settlement Amount.

Party A shall have a Partial Floating Independent Amount of $______________. Party A will Transfer or cause to be Transferred to Party B Eligible Collateral with a Value equal to such Independent Amount (the “Partial Floating IA Posted Collateral”) if at any time Party A otherwise has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount) pursuant to the Credit Support Addendum . The Partial Floating IA Posted Collateral shall not be reduced so long as Party A has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount).

The Partial Floating Independent Amount shall not be taken into account when calculating a Party’s Collateral Requirements pursuant to the Credit Support Addendum . Except as expressly set forth above, the Partial Floating Independent Amount shall be held and maintained in accordance with, and otherwise be subject to, the Credit Support Addendum.

B. Party B Independent Amount.

X Party B shall have a Fixed Inde pendent Amount of $ zero. Party B will Transfer or cause to be Transferred to Party A Eligible Collateral with a Value equal to the amount of such Independent Amount (the “Fixed IA Posted Collateral”). The Fixed IA Posted Collateral shall not be reduced for so long as there are any outstanding obligations between the Parties as a result of the Agreement, and shall not be taken into account when calculating Party B’s Collateral Requirement pursuant to the C redit Support Addendum . Except as expressly set forth above, the Fixed IA Posted Collateral shall be held and maintained in accordance with, and otherwise be subject to, the Credit Support Addendum.

Party B shall have a Full Floating Independent Amount of $______________. For purposes of calculating Party B’s Collateral Requirement pursuant to the Credit Support Addendum, such Full Floating Independent Amount for Party B shall be added by Party A to its Exposure for purposes of determining Net Settlement Amount.

Party B shall have a Partial Floating Independent Amount of $______________. Party B will Transfer or cause to be Transferred to Party A Eligible Collateral with a Value equal to such Independent Amount (the “Partial Floating IA Posted Collateral ”) if at any time Party B otherwise has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount) pursuant to the Credit Support Addendum . The Partial Floating IA Posted Collateral shall not be reduced for so long as Party B has a Collateral Requirement (not taking into consideration the Partial Floating Independent Amount).

The Partial Floating Independent Amount shall not be taken into account when calculating 4 a Party’s Collateral Requirements pursuant to the Credit Support Addendum. Except as expressly set forth above, the Partial Floating Independent Amount shall be held and maintained in accordance with, and otherwise be subject to, the Credit Support Addendum.

7. Ratings Matrix.

“Collateral Threshold" means, with respect to a party, at any time the amount specified in the table below under the relevant heading opposite whatever is the lower of the Relevant Ratings at that time assigned by the Rating Agencies, provided that:

(a) if only one Rating Agency assigns a Relevant Rating to a party, the Collateral Threshold with respect to such party will be the amount specified in the table below under the relevant heading opposite that rating;

(b) if neither Rating Agency assigns or both Rating Agencies cease to assign a Relevant Rating with respect to a party, the Collateral Threshold with respect to such party shall each be zero; and

(c) if an Event of Default with respect to a party has occurred and is continuing, the Collateral Threshold with respect to such party shall be zero.

“Relevant Rating” means:

(a) with respect to Party A, the long-term issuer rating of Party A; and

(b) with respect to Party B, the long-term issuer rating of Party B.

IN WITNESS WHEREOF, the parties hereto have executed these Special Provisions to the Model Credit Support Addendum to supplement and, where applicable, to modify and supersede the Model Credit Support Addendum to the Base Contract by and between the Parties.

CITY OF VICTORVILLE PARTY NAME MORGAN STANLEY CAPITAL GROUP INC.

By:

SIGNATURE

By:

PRINTED NAME
TITLE

S&P
Credit Rating
Moody’s
Credit Rating
Party A Collateral
Threshold
Party B Collateral
Threshold
AA- or above Aa3 or above $25,000,000 $25,000,000
A-, A, A+ A1, A2, A3 $15,000,000 $15,000,000
BBB-, BBB, BBB+ Baa1, Baa2, Baa3 $5,000,000 $5,000,000
Below BBB- Below Baa3 $ 0 $0

ATTACHMENT B

RESOLUTION NO. 25-003

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

VICTORVILLE, CALIFORNIA, APPROVING A CONTRACT FOR THE

SALE AND PURCHASE OF NATURAL GAS WITH MORGAN STANLEY
CAPITAL GROUP, INC.; AUTHORIZING THE CITY MANAGER TO
EXECUTE SAID CONTRACT; AND EMPOWERING THE CITY

MANAGER TO EXECUTE CONFIRMATIONS AND OTHER

NECESSARY DOCUMENTS CONTEMPLATED BY SAID CONTRACT

WHEREAS, the City of Victorville ( the “City”), a California municipal corporation and charter city , is authorized under various California laws (including, specifically, Article XI, Sections 5 and 9 of the California Constitution, California Public Utilities Code Section 10001 et seq., and Government Code Section 39732) to establish, purchase, and operate a public utility to furnish its inhabitants with, among other things, natural gas; and

WHEREAS, the City has heretofore established and operates a municipal electric and gas utility (“Victorville Municipal Utility Services” or “VMUS”); and

WHEREAS, to utilize the City’s new gas delivery point on the High Desert Lateral/Kern Interconnection to serve VMUS customers, the City sought to procure gas supply from reputable and creditworthy marketers for delivery into the Kern River capacity and ultimate delivery into the VMUS distribution system; and

WHEREAS, pursuant to the City’s Request for Proposal ( “RFP”) issued on August 22, 2024, Morgan Stanley Capital Group, Inc. (“ MSCG”) was among the potential gas suppliers submitting responsive proposals to the City; and

WHEREAS, based upon the General Terms and Conditions for Sale and Purchase of Natural Gas published by the North American Energy Standards Board and in connection with the RFP response, t he City and MSCG have negotiated the following: (1) a Base Contract for the Purchase and Sale of Natural Gas (the “Base Contract ”); (2) Special Provisions to the Base Contract; (3) a Model Credit Support Addendum (the “CSA”); and (4) Special Provisions to the CSA (collectively hereinafter the “ NAESB Contract ”), which now require approval and execution; and

WHEREAS, because the NAESB Contract was negotiated and does not qualify as an industry standard energy purchase contract under Victorville Municipal Code (“ VMC”) Section

2.28.320, VMC Section 2.28.330 does not authorize the Victorville City Manager (“ City Manager”) to approve and execute said contract and the approval of the governing body of the City (the “City Council”) is therefore required; and

WHEREAS, VMC Section 2.28.030 and the doctrine of delegation of authority permit the City Council by resolution to expressly authorize execution of contracts by the City Manager or other City officials following their approval/award by the City Council, and to delegate the authority to take further actions in accordance with standards provided by the City Council; and

WHEREAS, the natural gas purchases contemplated by the NAESB Contract will also require execution of certain Transaction Confirmations (substantially in the form set out in Exhibit A of the Base Contract), which Transaction Confirmations are time-sensitive and necessary to ensure proper quantities and availability of purchased natural gas; and

WHEREAS, to enable and facilitate the proposed natural gas transactions , the City Council wishes to approve the NAESB Contract , authorize the City Manager to execute same on behalf of the City, and to further authorize the City Manager to execute such Transaction Confirmations and other ancillary documents and agreements as may be necessary to administer the NAESB Contract and the transactions contemplated thereby.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VICTORVILLE, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1. Recitals

That the Recitals set forth above are true and correct, and together with the definitions contained therein are hereby incorporated into and made an operative part of this Resolution.

Section 2. NAESB Contract Approved

That the NAESB Contract, as defined in the recitals of this Resolution and attached hereto as Exhibit 1, is hereby approved.

Section 3. NAESB Contract Approved for Execution by City Manager

That the City Manager is authorized to execute the NAESB Contact on behalf of the City.

Section 4. Additional City Manager Authorization; Limitations

That the City Manager, or such person as he/she may designate in writing, is authorized to take such further actions as are required to implement the transactions contemplated by the NAESB Contract, including the execution of Transaction Confirmations and any additional ancillary agreements or documents that may be required; provided that the foregoing items are: (a) within the scope of and contemplated by the express provisions of the NAESB Contract ; and (b) in the case of ancillary agreements or other doc uments, reviewed and approved by the City’s outside utility counsel and the City Attorney prior to any such execution.

Section 5. Effective Date

That this Resolution shall take effect immediately upon its adoption.

Section 6. Resolution Certification

That the City Clerk shall certify to the passage and adoption of this Resolution.

Item Number: 16
City Council / Board of Directors
Written Communications
Meeting of: January 21, 2025
Submitted By:

Doug Mathews, Director of Public Works and Water

Subject:

Contract Award for Leak Detection Analysis
Recommendation:

That the Honorable City Council/Board of Directors:
(1) Deem that the services provided by Utilis, Inc., operating as Asterra, as proprietary in nature, thus meeting the requirements of a sole source vendor in accordance with VMC 2.28.100(b)(2); and
(2) Award a Consultant/Professional Services Provider Agreement with Utilis, Inc., operating as Asterra, for Leak Detection Analysis in the amount not to exceed $166,615.

Fiscal Impact:

This action will have a fiscal impact of $166,615. This project was appropriated in the Fiscal Year 24/25 annual budget under the Water Fund (Fund 410) from the following account codes:

Account Code Account Description Amount
4100535-52300-74652 Field Services - Contract Services – Leak Detection Software
$83,308
4100525-52300-74652 Water Conservation - Contract Services – Leak Detection Software
$83,307
Total $166,615
Strategic Plan Goal:

This item aligns with Goal E: Invest in Infrastructure, in the City of Victorville Strategic Plan 2023-2026. This software will be utilized to analyze, investigate, and mitigate water loss, which will assist staff with determining maintenance priorities with the objective of reducing the overall loss of water through leaks in the water distribution system. 3 9
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Background:

The Victorville Water District (District) maintains approximately 700 miles of potable water transmission and distribution pipes within an 80-square mile service area as an integral part of the drinking water system, delivering water to households and businesses 24 hours per day, and 365 days per year. A reliable network of piping is essential to deliver clean, safe drinking water to customers throughout the service area. However, much of the system’s infrastructure is aging, increasing the likelihood of leaks and breaks that can be both disruptive and costly. A large percentage of the pipes in the system were installed over 35 years ago, dating back to 1989. As pipes age, their materials naturally degrade, making them more susceptible to leaks and failures. To address these challenges, leaks are mitigated through a combination of reactive repairs, proactive maintenance, and planned rehabilitation.

Compounding the issue, aging polyethylene (PE) service lines have been the primary source of system leaks for the past two decades. Installed mostly between the 1980s and early 2000s, these PE lines now make up over 50 percent of the total service lines in the system, with approximately 12,675 active PE service lines still in place. Currently, the highest percentage of work performed by the Field Services Division staff involves reactive mitigation of the water distribution system. Leaks tend to become more frequent and severe with rising temperatures, and during the summer months, it is not uncommon for 75 percent of the field crews to be focused on replacing service lines due to these leaks.

Water purveyors (entities that supply water to the public for drinking, irrigation, and other uses), must comply with strict water efficiency and conservation mandates from the California State Water Resources Control Board (State Water Board). The "Make Conservation a California Way of Life" initiative sets efficiency goals for water agencies across the state. In 2018, AB 1668 and SB 606 tasked the State Water Board with developing efficiency standards to promote sustainable water use. These regulations, adopted on July 3, 2024, took effect on January 1, 2025. Among the requirements is the annual calculation of a Water Use Objective, which includes residential, commercial, and industrial water use, as well as real water loss. Real water loss refers to water lost from the distribution system due to leaks, bursts, and theft before reaching customers.

Agencies must meet specific leak detection and repair standards by 2028 and comply with volumetric water loss standards thereafter.

As part of its ongoing water loss management efforts, the District is required by law to submit an annual validated water loss audit through the American Water Works Association (AWWA). This audit provides a comprehensive assessment of water losses within the distribution system, including losses caused by leaks, bursts, and metering inaccuracies. By systematically estimating and analyzing these losses, the audit serves as a critical tool for identifying inefficiencies, prioritizing repair and replacement projects, and enhancing the overall integrity of the water system. Compliance with this requirement ensures that the District continues to align with state mandates and contributes to broader water conservation and sustainability goals.
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Discussion:

In response to increasing state-mandated water conservation efforts and ongoing challenges posed by aging infrastructure, the District recognizes the need for innovative tools to address water loss. While proactive pipeline and targeted PE line replacements have been essential steps, these measures alone cannot fully resolve the issue.

Enhanced leak detection is a critical component of the District’s strategy to manage water loss, reduce operational inefficiencies, and meet state-mandated regulatory standards.

To complement existing efforts, the District identified Asterra, a satellite-based leak detection software developed by Utilis, Inc., as an innovative tool. Asterra has utilizes satellite radar technology and its proprietary algorithm to conduct biannual surveys of the District’s 700-mile water distribution system, combined with 40 days of acoustic leak detection each year. This approach helps the District identify up to 125 Points of Interest (POIs) where leaks are likely, overlaying the data onto the District’s Geographic Information System (GIS) for clear visualization of leak-prone areas. The technology allows staff to effectively focus resources on targeted investigations, enhancing the District’s ability to address leaks in a timely and more cost-effective manner.

Water loss from pipelines and service lines constitutes non-revenue water, which not only impacts operational efficiency but also represents a financial burden. Asterra directly supports the District’s efforts to reduce water loss by improving leak detection and repair timelines, ensuring compliance with state-mandated efficiency standards. By integrating this innovative technology into its operations, the District positions itself to meet regulatory requirements while enhancing water conservation efforts and resource sustainability.

Pursuant to VMC 2.28.100(b)(2), and with no other technology offering the same level of satellite-based leak detection service, staff seeks Council’s approval to deem Asterra’s software as a sole-source procurement due to its unique capabilities that align with the District’s operational needs. Additionally, Utilis, Inc., the provider of Asterra, is the sole vendor offering this specialized satellite-based technology to assist in accurately identifying and prioritizing leak detection within a reasonable proximity to the District’s service area.

Therefore, staff recommends that the Council/Board deem the services provided by Utilis, Inc., operating as Asterra, as proprietary in nature, thus meeting the requirements of a sole source vendor in accordance with VMC 2.28.100(b)(2). Additionally, staff recommends awarding a Consultant/Professional Services Provider Agreement with Utilis, Inc., operating as Asterra, for the satellite-based leak detection and analysis of the District's potable water system, in an amount not to exceed $166,615.

Staff is available for any questions the Council/Board may have.

Attachments: A. Sole Source
B. Consultant/Professional Services Provider Agreement
Attachment A
Sole Source

SOLE SOURCE/BRAND REQUEST
When a request is made for a non-competitive purchase and the specifications limit the bidding to one source and/or one brand or trade name, the requesting department must complete the following:

VENDOR/COMPANY NAME: _______________________________________________________________

1. Please check one:

SOURCE: Item is available from one source only. Item is one-of-a kind and is exclusively sold through a regional authorized distributor or the manufacturer is the only distributor.

SOLE BRAND: Various sources can supply the specified model and brand, and competitive bids will be solicited for the requested brand only. Meets form, fit and function - nothing else will do.

STANDARDIZATION REQUEST: The City of Victorville ______________________ (Department name) Department requires the item(s) to standardize parts; design; quality; training; etc...

2. W
hat are the unique performance features of the product / brand requested that are not available in any other product / brand? (For services: What unique qualifications’, rights, licenses does this vendor possess?)

3. Why are the unique performance features REQUIRED (not merely preferred), and how would your requirement be inhibited without this service or item? N/A

4. If justification is based on matching and/or interdependent with existing equipment (refer to 1. Standardization Request), list the quantity, manufacturer, brand, and model of the existing equipment and why the matching is required.

I am aware of the City of Victorville’s policy for competitive bidding and the established criteria for sole source/sole brand purchasing. Therefore, I feel confident that this request for sole source/sole brand procurement meets the City of Victorville’s criteria and will withstand an audit or a vendor protest.

Requestor: ________________________________ ______________________________ ___________ (Print Name) (Signature) (Date)
Dept. Director: ____________________________ ______________________________ ___________ (Print Name) (Signature) (Date)
Finance Director: __________________________ ______________________________ ____________ (Print Name) (Signature) (Date)
Utilis, Inc., operating as Asterra
Anne Darroch
Doug Mathews
Carmen Cun
✔
Asterra offers unique satellite radar technology for system-wide leak detection, providing biannual surveys and 40 days of acoustic detection annually.

Its integration with GIS allows for visual mapping of leak-prone areas, enabling targeted investigations and efficient repairs, features not available in other products.

The unique performance features of Asterra are required to efficiently detect leaks across the District’s 700-mile water distribution system, where traditional methods are insufficient due to limited staffing and the large geographic area. Without these capabilities, the District would face significant challenges in identifying and addressing leaks proactively, leading to increased water loss, higher operational costs, and potential regulatory non-compliance.

N/a

4180 La Jolla Village Dr., #530 San Diego, CA 92037 858.521.9442 US asterra.io Utilis Inc., Dba., ASTERRA
4180 La Jolla Village Dr. Suite 530
San Diego, CA 92037

March 29, 2024

Attn: Victorville, CA
14343 Civic Drive PO Box 5001 | Victorville, CA 92393-5001

To Whom It May Concern:

This letter is in regard to ASTERRA and the sole source provider status for the Victorville, CA remote sensing water leak survey project. This letter is to confirm that the ASTERRA data analysis for identifying possible potable water leaks in water distribution systems is a sole source product, manufactured and sold by ASTERRA. No division of ASTERRA, nor any other company, makes a similar or competing product.

ASTERRA developed a unique and patented algorithm for leaks detection in urban freshwater distribution networks. ASTERRA uses spectral aerial imaging, taken from a satellite mounted sensor, using the L band microwave wavelength, to spot leakage in subterranean drinking water networks.

Drinking water is detected, by looking for the particular spectral signature typical to drinking water.

ASTERRA analysis identifies the leaks within a search distance from the actual leak. The search distance is defined by a "Dynamic buffer", which is calculated specifically according to physical properties of the analyzed area and technical components of the satellite. For every new analysis, the size of the dynamic buffer is specifically calculated. The polygon area size varies for each analysis.

Additionally, competition is precluded by the existence of patent: ASTERRA’ algorithm and process are patented US 9285475 Mar, 15 2016 SYSTEM AND METHOD OF UNDERGROUND WATER DETECTION assigned to ASTERRA. ASTERRA is 100% owned subsidiary of Utilis Inc.

If you desire additional information, don’t hesitate to contact us at 1-858-521-9442 at any time or visit our website at www.asterra.io

Sincerely,
James D. Perry
Executive Vice President
Attachment B
Consultant/Professional Services Provider
Agreement
1 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

CONSULTANT/PROFESSIONAL SERVICES PROVIDER AGREEMENT

BY AND BETWEEN

VICTORVILLE WATER DISTRICT
AND
UTILIS INC. DBA ASTERRA
FOR

LEAK DETECTION ANALYSIS,
PROJECT ESC25-070

THIS CONSULTANT/PROFESSIONAL SERVICES PROVIDER AGREEMENT (hereinafter “Agreement”), dated this _____ day of ______________, 2024, for reference purpose only, is made and entered into by and between the VICTORVILLE WATER DISTRICT, a County water district and subsidiary district of the City of Victorville, organized and existing in the County of San Bernardino under and by virtue of the laws of the State of California, hereinafter referred to as the “District”, and Utilis Inc. dba Asterra, a Delaware corporation , hereinafter referred to as “Consultant .” District and Consultant are sometimes hereinafter referred to individually as a “Party” and collectively referred to as the “Parties.”
RECITALS:

W
HEREAS, the District requires Consultant/Professional Service for Leak Detection Analysis; and
W
HEREAS, Consultant represents that it is fully qualified to perform the consulting and/or professional services required for performance under this Agreement by virtue of its experience and the training, education and expertise of its principals and its employees; and W
HEREAS, in light of the facts set forth above, the District desires to retain the services of a qualified Consultant to provide, on an independent contractor basis, Leak Detection Analysis; and
NO

W THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE

CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The
Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth fully herein.

Section 2. SCOPE OF SERVICES
C
onsultant shall provide to the District those services set forth in the Scope of Services attached hereto as Exhibit “A”, and incorporated as part of this Agreement by this reference. 2 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

Section 3. COMPENSATION

The District shall pay to Consultant a sum not to exceed One Hundred Sixty- sixty Thousand Six Hundred Fifteen and 00/100 Dollars ($166,615.00) for faithful performance of the services to be rendered under this Agreement, subject to the Proposal provisions of Section 4, below. No expense reimbursements, including, but not limited to, reimbursements for travel, parking, lodging, and/or meals shall be paid to Consultant unless such expense reimbursements: (i) are specifically provided for and described by nature and type in Exhib it “B”, below; (ii) appear on Consultant ’s monthly invoices to District ; (iii) are supported by the appropriate receipts and other such documentation as the District shall require; and (iv) are directly related to the Scope of Services to be performed under this Agreement. In addition, any and all reimbursements shall be made in accordance with any District policy governing same.

Section 4. CONSULTANT’S PROPOSAL

The District shall pay Consultant as provided in the Consultant’s Proposal , attached hereto as Exhibit “B”, and incorporated as part of this Agreement by this reference. The provisions of Exhibit “B” notwithstanding, in order to receive payments, Consultant shall be required to submit to the District detailed monthly invoices which include, if applicable, a description of all services/tasks performed, the number of hours expended on each service/task, the name of the person performing the service/task, and expense reimbursement information, if any, as required by Section 3, above. Provided that services have been satisfactorily rendered, invoices shall be paid by the District approximately thirty (30) working days following receipt of Consultant ’s invoice.

Section 5. RESERVED

Section 6. TERM OF AGREEMENT

This Agreement shall be for an Initial Term of Twelve (12) Months commencing on the date of full execution of Agreement (the “Commencement Date”) and expiring on Twelve Months from the Commencement Date (the “Termination Date”) (the “Term”) , unless terminated earlier pursuant to Section 21 of this Agreement. From and after the Termination Date, and upon subsequent agreement by the Parties, this Agreement may continue on a month-to-month basis until terminated pursuant to Section 21 below.

This Agreement may be extended for Four (4) additional one-year periods (hereinafter “Option Periods”), at the option of the District, subject to satisfactory performance as determined by the District. District shall give Service Provider sixty (60) days advance written notice prior to the expiration of the initial Term and sixty (60) days advance written notice prior to the expiration date of each subsequently exercised Option Period, if any, should the District decide to exercise its option(s) to extend. In the event District does not give Consultant such written notice of its option to extend, this Agreement shall terminate at the end of the then -current Term or Option Period without further notice from either Party, unless terminated earlier pursuant to the provisions of Section 21 below. Should the District fail to give Consultant the sixty (60) days written notice of its intention to exercise any Option Period, the District may, in its sole discretion, elect to exercise any Option Period at a later date, following written inquiry from Consultant.

3 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

Section 7. INDEPENDENT CONTRACTOR STATUS

It is the express intention of the Parties that Consultant is an independent contractor and not an employee, agent, joint ventures, or partner of the District. Nothing in this agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between the District and Consultant or any employee or agent of Consultant . Both Parties acknowledge that Consultant is not an employee for state or federal tax purposes or any other purpose. Consultant shall retain the right to perform services for others during the term of this agreement.

Section 8. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS OF

CONSULTANT

a. Consultant represents and acknowledges the following:

(1) The District is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the District.

(3) The services described in this Agreement can be performed without the use of District equipment, materials, tools, or facilities, unless otherwise provided under a separate agreement.

(4) Nothing in this Agreement shall be interpreted to imply that the District must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.

(5) The District will not be requested or demanded to assume any liability for the direct payment of any salary, wage, or other such compensation to any person employed by Consultant to perform the services described in this Agreement.

(6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the District.

b. The District represents and acknowledges the following:

(1) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.

(2) The District will not hire, supervise, or pay any employees or assistants working for Consultant pursuant to this Agreement.

(3) Nothing in this Agreement shall be interpreted to imply that Consultant must maintain any contractual relationship with the District on a continuing basis after termination of this Agreement.

(4) It is th e sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement. 4 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

(5) Consultant is not required to devote full time to the business operations of the District in order to perform the services set forth in this Agreement.

(6) Unless deemed necessary under certain circumstances, Consultant is not required to perform the services set forth in this Agreement at City Hall or on District -owned property.
(7) Other than attendance at required public meetings and public hearings, and complying with the provisions of the Consultant’s Proposal set forth in Exhibit B and any procedural requirements set forth by law, Consultant is not required to perform the services set forth in this Agreement in any particular order or sequence.

(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.

Section 9. NOT AGENT OF THE DISTRICT

a. Nothing contained in this Agreement shall be deemed, construed, or represented by the District or Consultant or by any third person to create the relationship of principal and agent.

b. Consultant shall have no authority, express or implied, to act on behalf of the District in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the District to any obligation whatsoever.

Section 10. LICENSES AND PERMITS

Consultant represents that it has obtained and will maintain at all times during the I nitial Term ( and during the Option Period, if applicable) of this Agreement all business licenses, including but not limited to a City of Victorville business license, professional licenses or certifications, or permits necessary for performing the services described in this Agreement.

Section 11. STANDARD OF PERFORMANCE; WARRANTY

a. Consultant agrees to perform all services required by this Agreement in a professional and competent manner, in accordance with the degree of skill and diligence which is normally employed by reputable professionals performing similar services under similar conditions in the same or similar locality. Such services shall also be performed in a manner which is reasonably satisfactory to Doug Mathews, Director of Public Works and Water, or his designee.

b. By executing this Agreement, Consultant warrants that it:

(1) Has thoroughly investigated and considered the services and work to be performed;

(2) Has investigated the issues regarding the scope of services to be provided;

5 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

(3) Has carefully considered how the services and related work should be performed; and

(4) Fully understands the facilities, difficulties and restrictions associated with performance of the services required by this Agreement.

Section 12. FAMILIARITY WITH WORK

Should Consultant discover any latent or unknown conditions materially differing from those inherent in the services or as represented by the District , Consultant shall immediately inform the District of such fact and shall not provide any services, except at Consultant's risk, until written instructions are received from Doug Mathews, Director of Public Works and Water, or his designee.

Section 13. CONFLICTS OF INTEREST

Consultant covenants that it does not have any interest, nor shall it acquire any interest, directly or indirectly, which would conflict in any manner with the performance of Consultant’s services under this Agreement. Consultant further covenants that in the performance of services under this Agreement, no officer, employee or agent of Consultant having such interest shall be employed by it. In the event the District determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file such Form 700 with the District Secretary’s Office pursuant to the written instructions provided by the District Secretary.

Acquisition or maintenance of a conflicting interest by Consultant may result in termination of this Agreement by the District.

Section 14. COMPLIANCE WITH LAWS

Consultant shall comply with all local, state, and federal laws and regulations applicable to the services to be rendered hereunder, including any rule, regulation, or bylaw governing the conduct or performance of Consultant or its employees, officers, or board members.

Section 15. C OMMERCIAL GENERAL AND AUTOMOBILE LIABILITY

INSURANCE

a. Consultant shall procure and maintain at its own expense, during the I nitial Term of this Agreement (and during the Option Period, if applicable) , Commercial G eneral Liability Insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by Consultant or its officers, employees, servants, volunteers, and agents and independent contractors.

b. Consultant shall further procure and maintain, at its own expense, during the Initial Term of this Agreement, (and during the Option Period, if applicable), Commercial Vehicle Liability Insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit, covering any vehicle utilized by Consultant or its officers, employees, servants, volunteers, agents and independent contractors in performing the services required by this Agreement.

6 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

Section 16. WORKERS' COMPENSATION INSURANCE

a. Consultant shall procure and maintain at its own expense, during the I nitial Term of this Agreement ( and during the Option Period, if applicable), W orkers' Compensation Insurance, providing coverage as required by the California State Workers' Compensation Law.

b. If any class of employees employed by the Consultant pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the District.

Section 17. PROFESSIONAL LIABILITY INSURANCE

Professional Liability Insurance or Errors and Omissions insurance as appropriate to Consultant’s profession shall be required and written on a policy form specifically designed to provide coverage for and protect against the negligent acts, errors and omissions of the Consultant in the performance of the services required by this Agreement. A minimum limit of One Million Dollars ($1,000,000) per claim and in the aggregate must be provided.

Section 18. ADDITIONAL INSURED

Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, all insurance policies, except for the Workers' Compensation and Professional Liability, shall be endorsed to name the District, the City of Victorville, their officers, employees, servants, volunteers, agents and independent contractors, including, without limitation, the District Legal Counsel, as Additional Insureds.

Section 19. WAIVER OF SUBROGATION RIGHTS

Consultant shall require the carriers of all required insurance policies, with exception to Professional Liability, to waive all rights of subrogation against the District, the City of Victorville, and their officers, employees, servants, volunteers, agents, and independent contractors and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 20. PROOF OF INSURANCE COVERAGE; REQUIRED

ENDORSEMENTS

a. Consultant shall secure from a good and responsible company or companies authorized to transact insurance business in the State of California, the policies of insurance required by this Agreement and furnish to the Clerk certificates of insurance evidencing the required coverage, and policy endorsements at least one (1) business day prior to the commencement of any services to be performed under this Agreement.

b. The policies and certificates of insurance shall be endorsed to provide that in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the District shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of cancellation for non -payment, ten (10) days advance written notice shall be given.

7 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

c. Each policy and certificate of insurance shall be endorsed to provide that the policy shall not be terminated or expire without first providing thirty (30) days written notice to the District of such termination or expiration.

d. Each policy and certificate of insurance shall be endorsed to provide that the policy will be maintained throughout the Initial Term (and during the Option Period, if applicable), of this Agreement.

e. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the District, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the District, its officers, officials, employees, or volunteers shall be excess of the Consultant ’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”

Section 21. TERMINATION OR SUSPENSION

a. This Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of such termination or suspension. In the event of such termination, the District shall only be liable for payment under the payment provisions of this Agreement for satisfactory services rendered or supplies actually furnished prior to the effective date of termination.

b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the District shall only be liable for payment under the payment provisions of this Agreement for satisfactory services rendered or supplies actually furnished prior to the effective date of termination.

Section 22. TIME OF THE ESSENCE

Time is of the essence in the performance of this Agreement.

Section 23. INDEMNIFICATION

a. Except as set forth in Subsection b of this Section 23, and to the fullest extent permitted by law, Consultant shall immediately defend, indemnify, and hold harmless the District, its officers, employees, representatives, and agents (the “District Indemnitees”), from and against those actions, suits, proceedings, claims, demands, losses, costs, and expenses, including legal costs and reasonable attorneys’ fees, for any personal injuries, deaths, or property damage, including property owned by the District (collectively “Claims”) which may arise out of Consultant's negligence or willful misconduct in the performance of the services described in this Agreement, unless such Claims are proven to be caused by the negligence or willful misconduct of the District Indemnitees.

b. The provisions of this Subsection b apply only in the event that Consultant is a design professional within the meaning of California Civil Code section 2782.8 (“Design Professional”). The term Design Professional, as defined in said section, is limited to licensed 8 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

architects, licensed landscape architects, registered professional engineers, professional land surveyors, and the business entities that offer such services in accordance with the applicable provisions of the California Business and Professions Code.

(1) Notwithstanding the provisions of Subsection a above, to the extent that the services to be provided under this Agreement are those of a Design Professional, Consultant's duty to indemnify, hold harmless, and defend the District Indemnitees shall be limited to the extent that any Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, its officers, agents, employees or subconsultants in the performance of the services described in this Agreement.

(2) In no event shall the costs of defense charged to Consultant exceed the Consultant’s proportionate percentage of fault, except as otherwise set forth in said Civil Code section 2782.8, the provisions of which are incorporated into this Agreement by this reference.

Nothing in this Subsection b shall be construed to require Consultant to provide indemnification for Claims caused by the active negligence or willful misconduct of the District Indemnitees.

c. The District does not and shall not waive any rights that it may have against Consultant under this Section, because of the acceptance by the District, or the deposit with the District, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless and indemnification provisions of this Section 23 shall apply regardless of whether said insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense described herein.

d. The obligation to indemnify and defend, as set forth in this Section 23, is binding on the successors, assigns, or heirs of Consultant and shall survive the expiration or any early termination of this Agreement.

Section 24. REPORTS

Upon request by Doug Mathews, Director of Public Works and Water , or his designee, or as otherwise required by this Agreement, including but not limited to, the Scope of Services set forth in Exhibit “A”, Consultant shall prepare and submit reports to the District concerning Consultant's performance of the services required by this Agreement.

Section 25. RECORDS

a. Consultant shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable Doug Mathews, Director of Public Works and Water, or his designee, to evaluate the cost and the performance of such services.

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles.

c. Doug Mathews, Director of Public Works and Water, or h is designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

d. Records and supporting documents pertaining to the use of funds paid to Consultant hereunder shall be retained by Consultant and made available to Doug Mathews, 9 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

Director of Public Works and Water, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

Section 26. RESERVED

Section 27. CONFIDENTIALITY; OWNERSHIP OF WORK

a. Any and all documents and information obtained from the District or prepared by Consultant for the District shall be kept strictly confidential unless otherwise provided by applicable law. All District data, documents and information shall be returned to the District upon termination of the Agreement.

b. Any drawings, specifications, reports, records, documents, or other materials prepared by Consultant in the performance of services under this Agreement shall not be released publicly without the prior written approval of to Doug Mathews, Director of Public Works and Water, or his designee, or as required by applicable law.

c. Consultant shall not disclose to any other entity or person any information regarding the activities of the District , except with the prior written approval of Doug Mathews, Director of Public Works and Water, or his designee, or as required by applicable law.

d. All original documents, reports, designs, computer files and all other materials prepared by Consultant in the course of performing the services pursuant to this Agreement, whether completed or in progress, are the property of the District and shall be surrendered to the District upon the completion of Consultant’s services or when requested by Doug Mathews, Director of Public Works and Water, or his designee. Such materials may be used, reused or otherwise disposed of by the District without the permission of Consultant.

e. Consultant’s covenants under this Section 27 shall survive the termination of this Agreement.

Section 28. PRINCIPAL REPRESENTATIVES

a. Gadi Kovarsky, General Manager, or his designee, is designated as the principal representative of Consultant for purposes of communicating with the District on any matter associated with the performance of the services set forth in this Agreement.

b. Doug Mathews, Director of Public Works and Water, or his designee, shall be the principal representative of the District for purposes of communicating with Consultant on any matter associated with the performance of the services set forth in this Agreement.

c. Either Party may designate another individual as its principal representative by giving written notice of such designation to the other Party.

Section 29. MODIFICATIONS AND AMENDMENTS; EXTRA SERVICES

a. This Agreement may be modified or amended only by a written instrument signed by both Parties.

b. During the Initial Term, the District may request that the Consultant perform Extra Services. As used herein, "Extra Services" means any services, which are determined by the 10 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

District to be necessary for the proper completion of Leak Detection Analysis but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. A written instrument signed by both Parties shall be required to authorize performance of and payment for Extra Services.

Section 30. ENTIRE AGREEMENT

a. This Agreement supersedes any and all prior or contemporaneous agreements, either oral or written, between the District and Consultant with respect to the subject matter of this Agreement.

b. This Agreement contains all of the covenants and agreements between the Parties with respect to the subject matter of this Agreement, and each Party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any Party, except those covenants and agreements in this Agreement.

c. No agreement, statement, or promise with respect to the subject matter of this Agreement, which is not contained in this Agreement, or in a valid modification or amendment to this Agreement, shall be valid or binding on either Party.

Section 31. AMBIGUITIES

Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement.

Notwithstanding the foregoing, the Parties agree that Exhibit “B” are attached hereto for reference purposes and to the extent there are any ambiguities, inconsistencies or conflicts between the terms of this Consultant/Professional Services Standard Provider Agreement and Exhibit “B” the terms of this Consultant/Professional Services Standard Provider Agreement shall control and nothing set forth in Exhibit “B” shall be deemed to supersede any of the provisions of this Consultant/Professional Services Standard Provider Agreement.

Section 32. NOTICES

a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the Parties as follows:

To the District: Doug Mathews, Director of Public Works and Water Victorville Water District
City of Victorville
14343 Civic Drive
Victorville, CA 92392

11 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

To Consultant: Gadi Kovarsky, General Manager, Water Division Utilis Inc. dba Asterra
41800 La Jolla Village Dr., Suite 530
La Jolla, CA 92037

b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 33. NON-LIABILITY OF DISTRICT OFFICERS AND

EMPLOYEES

No officer or employee of the District shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by the District or for any amount, which may become due to Consultant or to its successor(s), or for any breach of any obligation of the terms of this Agreement.

Section 34. REVIEW BY ATTORNEYS

Each Party hereto has had its attorney(s) review this Agreement and all related documents. Each Party hereto has consulted with its attorney(s) and has negotiated the terms of this Agreement based on such consultation.

Section 35. W AIVER

a. No waiver shall be binding unless executed in writing by the Party making the waiver.

b. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision.

c. Failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of such provision or any of the remaining provisions of this Agreement.

Section 36. ASSIGNMENT

This Agreement shall not be assigned by either Party without prior written consent of the other Party.

Section 37. CARE OF WORK

The performance of services by Consultant or the payment of money by the District shall not relieve Consultant from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to the District, when such incomplete, inaccurate or defective work is due to the negligence of Consultant.

12 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

Section 38. CAPTIONS AND HEADINGS

The captions and headings contained in this Agreement are provided for identification purposes only and shall not be interpreted to limit or define the content of the provisions described under the respective caption or heading.

Section 39. SUCCESSORS, HEIRS, AND ASSIGNS

Section 40. GENDER

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 41. SEVERABILITY

If any one or more of the sentences, clauses, paragraphs, or sections contained herein is declared invalid, void, or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair, or invalidate any of the remaining sentences, clauses, paragraphs, or sections contained herein.

Section 42. GOVERNING LAW

The validity of this Agreement and any of its terms or provisions, as well as the rights and duties of the Parties under this Agreement, shall be construed pursuant to and in accordance with California law.

Section 43. DEFAULT

a. Failure or delay by any Party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the Party who is otherwise claimed to be in default by the other Party commences to cure, correct, or reme dy the alleged default within fifteen (15) days after receipt of written notice specifying such default and shall diligently complete such cure, correction, or remedy, such Party shall not be deemed to be in default hereunder.

b. The Party claiming that a default has occurred shall give written notice of default to the Party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured Party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein.

c. Any failure or delay by a Party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.

13 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

d. In the event that a default by any Party to this Agreement may remain uncured for more than fifteen (15) days following written notice, as provided above, the injured Party shall be entitled to seek any appropriate remedy or damages by initiating legal proceedings.

Section 44. CUMULATIVE REMEDIES

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default of any other default by the other Party.

Section 45. VENUE

All proceedings involving disputes over the terms, provisions, covenants, or conditions contained in this Agreement and all proceedings involving any enforcement action related to this Agreement shall be initiated and conducted in the applicable court or forum in San Bernardino County, California.

Section 46. ATTORNEYS’ FEES

In the event any action, suit, or proceeding is brought for the enforcement of, or the declaration of any right or obligation pursuant to this Agreement, or as a result of any alleged breach of any provision of this Agreement, the prevailing Party in such suit or proceeding shall be entitled to recover its costs and expenses, including reasonable attorneys’ fees, from the losing Party, and any judgment or decree rendered in such a proceeding shall include an award thereof.

Section 47. EFFECTIVENESS OF AGREEMENT

This Agreement shall not be binding upon the District, until signed by the authorized representative(s) of Consultant , approved by the District ’s Risk Manager, and executed by the authorized District personnel or Mayor.

Section 48. REPRESENTATIONS OF PARTIES AND PERSONS

EXECUTING AGREEMENT

a. Each of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.

b. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

Section 49. COUNTERPARTS

This Agreement may be executed by the P arties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Agreement.

(END OF THIS PAGE)

14 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the dates written below.

VICTORVILLE WATER DISTRICT UTILIS INC. DBA ASTERRA

By: ______________________________ By: __________________________ Elizabeth Becerra, Gadi Kovarsky,
District Chairman General Manager,
Water Division

Dated: ___________________________ Dated: _______________________

ATTEST

By: ______________________________
Jennifer Thompson,
District Secretary

Dated: ___________________________

By: ______________________________
Sandra Bostick,
District Risk Manager

Dated: ___________________________

Approved as to Standard Form:

By:

Andre de Bortnowsky,
District Legal Counsel

Dated: ___________________________

15 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

EXHIBIT A

SCOPE OF SERVICES

See Attachment

ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 1 ASTERRA Statement of Work
&
Software Terms of Use
Provided to:

City of Victorville, CA
September 23, 2024
Table of Content
Statement of Work (SOW)…………………………………………. Page 2
Table of Fees………………………………………………………………. Page 5
Acceptance of Terms…………………………………………………… Page 6
Terms of Use……………………………..………………………………. Page 7
Annex A – Area of interest……………………………………..…. Page 15
Annex B – CSM services list and SLA………….………………. Page 16 EXHIBIT A, PROJECT ESC25-070
1/
ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 2 Statement of Work (SOW)
This Statement of Work (“ SOW”) is provided in connection with the Terms of Use governing the use of ASTERRA’s Services and Platform.

Capitalized terms not defined herein shall have the respective meanings as set forth in the Terms of Use.

A. ROLES, RESPONSIBILITIES AND SERVICES – ASTERRA

1. GENERAL
ASTERRA offers its Clients, a patented technology operated by Utilis Inc. for pipe replacement modeling, and leak detection in urban and rural water networks, using L-band synthetic aperture radar (SAR) mounted on a satellite. The technology is based on a proprietary algorithm that detects soil moisture through the analysis of SAR data.

2. ASTERRA’S PRODUCTS OVERVIEW
ASTERRA will provide Client with the following Products available through the Platform:
“Recover”, “MasterPlan” (the “Products”), and their related Service Tiers: “Detect”, “Prevent” or “Advise” (the “Service Tiers”).

2.1 Recover - Satellite-Based Leak Detection and Analysis ASTERRA Recover provides customers with leak detection monitoring for drinking and wastewater systems utilizing Synthetic Aperture Radar (SAR) signals from satellites to illuminate the area of interest and collect the resulting reflected signals. These signals ar e analyzed with the ASTERRA patented algorithm and processed to identify specific indicators of wet soil saturated with potable or wastewater, screening out the signal noise and other interference. The result is a map showing likely leak locations, or Poin ts of Interest (POI).

These results typically encompass 5 – 10 % of the entire system length, so that the clients time and resource cost to inspect is much lower than traditional inspection methods. Recover is available as a subscription with various levels of service to match client’s needs.

2.2 MasterPlan – Pipeline Monitoring and Deficiency Assessment Similar to Recover, ASTERRA MasterPlan utilizes Synthetic Aperture Radar (SAR) signals from satellites to illuminate the area of interest and collect the resulting reflected signals over time.

These signals are analyzed with the ASTERRA patented algorithm and processed to identify the condition of underground water infrastructure, with pipes scored on a 1 – 5 scale, from a low level of deficiency observed to high levels of deficiency. The algorithm scores pipe segments exhibiting non-surfacing leaks and analyzes leak clusters over time contributing to the development of long -term maintenance and pipe replacement plans. MasterPlan is compatible with all GIS-based asset planning model tools and easily integrates with attribute EXHIBIT A, PROJECT ESC25-070
2/

ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 3

data such as pipe age, material, and work orders from surfacing leaks. MasterPlan is available in the Advise level subscription or as an additional service to Clients in the Prevent tier.

B. ROLES, RESPONSIBILITIES – CLIENT

1. GENERAL
Client is responsible for providing baseline system data, work order history and in some cases, an acoustic field verification team to inspect points of interests (POI) identified by ASTERRA. Client shall identify a primary contact person for technical, administrative, and field inspection coordination.

2. CLIENT RESPONISBILITES:

Client shall provide ASTERRA with the following materials (“Materials”):

2.1 Area of interest (AOI): the Client will provide ASTERRA with an area of interest (AOI). Unless agreed otherwise by the parties, the AOI is a designated geographical area to be surveyed using ASTERRA technology. AOI is required for all Products. AOI is attached as Annex A hereto and as agreed upon number of linear miles or area defined in Section E herein.

2.2 Recover Product/MasterPlan Pipe System Information: prior to image acquisition, the Client shall provide ASTERRA with a detailed and accurate GIS pipe system layer in the form of a shapefile or KML/KMZ. ASTERRA will use this layer to identify POI locations. The GIS layer should include pipe material, pipe age, pressure zone, and diameter, length of pipeline, trunk, main and service to be analyzed, and major appurtenances including hydrants, valves, and any other detailed information available.

2.3 Recover/MasterPlan Leak Detection History (Work Orders) : The Client shall provide ASTERRA with a detailed and accurate history of leak findings and repairs through the “Go - Live Date”.

2.4 Recover/MasterPlan Leak Detection Performance Metrics: The Client shall provide ASTERRA with relevant and available performance metric data related to previous Client -utilized leak detection methodologies, field investigation process, timing, methods, and data delivery timing information , customer cost of water and cost of energy per CSM interview. This information will be used to calculate performance metrics of the service.

C. WORK PROCESS TIMELINE

1. Upon receipt of Client’s Materials, ASTERRA shall initiate the satellite imagery acquisition and analysis. Once the analysis is completed, ASTERRA will inform Client of the “Go -Live-Date” and access to Product will be granted to Client. “Go -Live-Date” notice will be furnished by ASTERRA upon 7 -14 business days after the scheduled image acquisition date. Image EXHIBIT A, PROJECT ESC25-070
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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 4 acquisition dates may be changed by a third party (satellite operator) or due to technical constraints. ”Go -Live-Date” may be affected due to poor image quality according to ASTERRA’s quality assurance standards.

2. Unless otherwise agreed upon by both parties, ASTERRA will provide Services only in the AOI overlapping with the Client’s provided GIS pipe system layer.

3. Recover leak field inspection work can begin after the leakage report has been delivered to the Client customer portal and ASTERRA has provided training, guidance, and interpretation of the leakage data.

4. Unless otherwise agreed upon by the parties, field work with an ASTERRA field engineer will be conducted only within the borders of the AOI and at sites where access is provided by the client.

5. Delays in the provision of Materials may result in delays and/or additional cost in performing the Services. Where required, Client shall furnish access to Client’s premises, and appropriate worksite, as necessary for performance of those portions of the Services to be performed at Client’s premises.
6 Solely to the extent that ASTERRA provides Client pursuant to the applicable SOW with field work (by its own personnel or by its subcontractors), ASTERRA agrees to defend and indemnify Client and its respective directors, officers, employees, consultants, successors and assigns (collectively “Client Indemnitee”) from and against any claim by a third party brought against Client Indemnitee, relating to any negligence or willful misconduct of ASTERRA or its subcontractors in providing such field work, except if the claim results from the instructions of Client or a Client Indemnitee.

D. ACCESS TO PLATFORM AND PRODUCTS

1. Provision of the Platform: portal environment, applicable licenses, including U-Collect and U- View licenses, analytics, reports and data that can be used in Client’s GIS systems.

2. Access to the Platform shall only be granted upon ASTERRA’s “Go -Live” notice to the Client and shall expire on the Service termination date.

3. Upon expiration or termination of the Agreement for any reason, Client will not be able to access the Services and/or, the data stored within the Platform, the Platform, related software and mobile applications, ASTERRA’s support and any other software or data related to the Service. Any and all data not exported by Client to Client’s own storage, shall no longer be available to Client following Service’s termination. An exception will be made for Clients who renew their subscription within 12 months of termination of their previous subscription.

4. The provision of ongoing technical and support services by ASTERRA are in accordance with the Service Level Agreement (“SLA”).

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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 5 E. FEES & PAYMENT TERMS

1. Annual subscription fee per Package and Service Tier requested by Client (exclusive of Taxes) (“Annual Fee”) and A dditional Services as required by Client (“Support Service Fee”) as provided in the table below.

2. Package Name: Prevent, Subscription Duration: 12 Months

3. Potable Water lines surveyed: 775 Miles

4. Table of fees:

ASTERRA Package: Prevent QTY Price
Annual Subscription Package 1 86,615
Additional Services
Subcontracted BOTG Technician (5 Days minimum) 40 days $80,000 TOTAL $166,615

5. Payments by Client shall be made as follows:
a. Annual Subscription Fee and any additional services shall be invoiced by ASTERRA on the Go-Live-Date.
b. Subcontracted Acoustic Leak Detection (BOTG) will be invoiced 14 days prior to the commencement of the field investigation.

6. Payment is due 30 days from the invoice date.

7. Requests for analysis outside the agreed upon AOI provided by the Client in Annex A may result in additional fees.

8. CSM SERVICES LIST & Service Level Agreement (SLA) is attached hereto as Annex B EXHIBIT A, PROJECT ESC25-070
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ACCEPTANCE OF TERMS
By executing this SOW, you confirm your approval of the SOW on behalf of Client listed below, to be contractually bound by:

1. This SOW; and

2. The Terms of Use and Service Level Agreement incorporated by reference into this SOW.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Utilis Inc., dba., ASTERRA City of Victorville, CA
Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

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TERMS OF USE
These Terms of Use (the “Terms”) is made and entered into as this ____ day of ________ 2024 (“Effective Date”), by and between Utilis Inc., dba., ASTERRA (the “Company”, “ASTERRA”) a private company having its registered offices at 4180 La Jolla Village Dr. , Suite 530 , La Jolla, CA 92037, and City of Victorville, CA (“Client(s)”, “you”) a corporation organized and existing under the laws of California with a principle place of business and mailing address at 14343 Civic Drive PO Box 5001 Victorville, CA 92393-5001 Terms of use govern the provision of the services that provide information for leak detection analysis, pipeline monitoring and deficiency assessment, using remote sensing technology (the “ Service(s)”) operated by Utilis Israel Ltd., Utilis, Inc., Utilis SAR Ltd or Utilis Japan. , all trading and doing business as ASTERRA (“ASTERRA”). Each of Client and ASTERRA will be referred to as a "party" and together the "parties".

1. Definitions and Interpretation

1.1. Capitalized terms not defined herein have
the meanings given in the Statement of Work
(the “SOW”) or the Service Level Agreement (the
“SLA”), which are hereby incorporated into, and
form part of, these Terms (together the
“Agreement”), unless specifically excluded.

1.2. If there is a conflict between any provision
of these Terms , the SOW, the SLA or any other
agreement related to the Services , these Terms
and the Agreement shall prevail , unless
specifically expressed otherwise.

2. License Grant

2.1 Subject to the Terms, Client requests and
ASTERRA grants, a nonexclusive, non -
transferable, non-sublicensable, limited access
license, to use the portal environment, applicable
licenses, analytics, reports and data that can be
used in client’s GIS systems (the “ Platform”)
during the Term, solely in accordance with the
Terms herein, for Client’s internal business
purposes only.

2.2 Services, additional services, and/or licenses
shall be issued in separate SOWs, in the form
attached hereto as Statement of Work, signed by
both parties, numbered sequentially (SOW1,
SOW2, etc.), all attached to and governed by
these Terms.

3. ASTERRA Limited Warranties
ASTERRA warrants and undertakes that:

3.1. it will provide the Services using the degree
of skill, care, and diligence which would
reasonably and ordinarily be expected from a
skilled and experienced provider of the Services
(or of services materially similar to the Services);

3.2. each member o r individual involved in the
provision of the Services shall be suitably
qualified, adequately trained and competent to
provide the relevant part of the Services in
respect of which they are engaged.

3.3. the Services, when used in the manner
envisaged by this Agreement, do not, to the best
of ASTERRA’s knowledge, infringe the intellectual
property rights of any third party.

3.5. ASTERRA shall not be liable for any material
delay or failure to provide the Services to the
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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 8 extent that such material delay or failure is
caused by Client’s failure to comply with the
Agreement, including but not limited to, the
following obligations:
a. provision of data as agreed between the
Parties and set out in the SOW – to be made
ready on or before any agreed date of provision.
b. failure by Client to make available personnel ,
Information, or to provide site physical access, as
reasonably required for the performance of the
Services.
c. a failure by Client to make available adequate
infrastructure to install, activate and use of the
Service (such as: Client’s systems and devices) to
support the provision of the Services.

3.6 The Services hereunder are provided on an
"AS IS" basis. Except for the above express
warranty, ASTERRA makes no other warranties,
express or implied, relating to the Services.

ASTERRA does not represent or warrant that the
Services shall be uninterrupted or error -free.

ASTERRA disclaims and excludes any implied
warranties of non-infringement, merchantability
and/or fitness for a particular purpose.

4. Payment Terms

4.1 In consideration of the Service, Client will
pay all invoices issued under this Agreement in
accordance with stated payment terms on the
relevant SOW. Any invoice that has not been paid
within such period of time shall bear interest at
the rate of 1% per month or any part of a month.

Client is responsible for any applicable tax, duty,
or tariff (except with respect to ASTERRA’s
income), and all reasonable costs of shipment.

4.2 All Customer’s payment obligations to
ASTERRA are non -cancelable and paid fees are
non-refundable. Client is responsible for paying
all fees applicable to its subscription to the
Service, whether or not it actively used, accessed
or otherwise benefited from the Service. Unless
stated differently in the SOW, fees are exclusive
of any sales tax, VAT, withholding tax or other
governmental charges or transaction charges.

Where applicable, ASTERRA will provide the
Client its tax certificates and Client shall withhold
taxes from payments due as per such certificates.

5. Technical Support

5.1. During the Term, ASTERRA, either directly or
with the assistance of third parties, will provide
Client technical support for technical issues
regarding the Services, in accordance with the
SLA terms. For the purpose of the provision of
technical support for the Client’s technical
questions, problems and inquiries, Client will
cooperate, and work closely with ASTERRA, to
reproduce malfunctions, including conducting
diagnostic or troubleshooting activities, as
ASTERRA reasonably requests.

ASTERRA may suspend the Services for planned
maintenance work (“ Planned Maintenance ”) or
for rectifying critical outages (“ Unplanned
Maintenance”). In relation to Planned
Maintenance, ASTERRA shall provide Client at
least 14 calendar days’ prior notice stating the
scope, time, and duration of the Planned
Maintenance. In relation to Unplanned
Maintenance, ASTERRA shall endeavor to
provide Client with such advance notice as is
reasonably practicable in the circumstances.

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6. Privacy
As part of the Services, you may be granted a
certain number of U-Collect, U-View and
ASTERRA’s Dashboard Licenses. The applicable
terms of use and privacy policy are detailed in
https://ASTERRA.io/privacy-policy-portal-
application/

7. Confidentiality
Each party (“ Recipient”) agrees to: (a) keep all
Confidential Information (as defined below)
confidential; (b) not without the other party’s
(“Discloser”) prior written consent to disclose
any Confidential Information to any other person
save those of its personnel who have a need to
know the same in connection with this
Agreement and its performance of this
Agreement; (c) to use the Confidential
Information solely in connection with this
Agreement and the performance of its
obligations hereunder and not ot herwise for its
own benefit or for the benefit of any third party.
“Confidential Information” means all data,
material, and information of a confidential
nature in any form whatsoever disclosed
(whether directly or indirectly) by or on behalf of
the Disclo ser to Recipient, including: (a) the
contents of and negotiations in relation to this
Agreement; (b) the identity and business,
financial and/or technical affairs of that party's
business contacts, including Clients, agents,
distributors and licensees; (c) any information
that Recipient obtains or receives as a result of
discussions leading up to the signature of this
Agreement or subsequent performance of this
Agreement; (d) any information obtained or
observed as a result of any site visit; (e) all
financial information of Discloser; (f) all data
provided to Recipient by or on behalf of the
Discloser in connection with the Services.

Confidential Information does not include
information: (a) disclosed as a requirement of
law or any regulatory body to whose rule
Recipient is subject provided that Recipient, if
legally permissible, gives Discloser prompt
written notice of such requirement prior to such
disclosure and only discloses that portion of the
Confidential Information that is legally required;
(b) know n to Recipient prior to the
commencement of this Agreement otherwise
than as a result of being obtained directly or
indirectly from the Discloser; (c) obtained from a
third party who lawfully possessed such
Confidential Information and which has not been
obtained in a breach of a duty of confidence
owed to the Discloser; (d) developed
independently by Recipient without the use of
Discloser’s Confidential Information or ( e) in the
public domain other than as a result of a breach
of a duty of confidence owed to the Discloser.

Upon request of Discloser or upon the expiry or
termination of this Agreement, Recipient shall
delete and destroy any Discloser’s Confidential
Information then in its possession or control.

Recipient acknowledges that remedies at law
may be inadequate to provide Discloser with full
compensation in the event of a material breach
of any confidentiality and nondisclosure
obligations herein without bond or other security
obligation, to seek injunctive relief in the event of
any such breach.

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8. Client Data; Client Feedback

8.1 Client acknowledges and agrees that
ASTERRA will handle and use (by itself or by using
trusted third -party service providers) the data
that the Client feeds to the Platform (or that
ASTERRA feeds to the Platform on Client’s behalf)
(“Client Data ”) and the data and output
generated by the Platform when used by the
Client, as follows:
(a) To provide the Services to the Client, conduct
administrative and technical activities necessary
to maintain and provide the Service s and to
improve and customize the Services;
(b) To conduct analysis or generate metrics
related to the Services;
(c) For commercial and marketing purposes,
publication of case studies and white papers
regarding the Service s itself (only in a form not
identifying the Client and not disclosing any
Client-specific output generate by the Platform
unless specifically approved by the client);
(d) To bill and collect fees (if applicable), to
enforce this Agreement, and to take any action in
any case of dispute or legal proceeding of any
kind involving the Client with respect to this
Agreement;
(e) To prevent fraud, misappropriation,
infringements, and other illegal activities and
misuse of the Services;
(f) To develop new products , features , and
services, and for research and testing, provided
that no information identifying the Client is
publicly shared without prior authorization from
the Client.

The Client will not be entitled to any
remuneration from ASTERRA for the foregoing
uses.

8.2 ASTERRA may, but are under no duty to,
review Client Data made available through the
Service. We may, in our sole discretion,
temporarily or permanently delete or block
access Service, if we find that it violates these
Terms or for any other reason

8.3 Client may provide ASTERRA with
information or content concerning
enhancements, changes, or additions to the
Service or other Company offerings, that are
requested, desired or suggested by the Client or
users on its behalf, including information
pertaining to bugs, errors and malfu nctions of
the Service, performance of the Service, content
and accuracy of the Service, the Service’s
compatibility and interoperability, and
information or content concerning
enhancements, changes or additions to the
Service that Client requests, desires or suggests
(“Feedback”). Client hereby assigns, without
charge, all right, title and interest in and to the
Feedback to ASTERRA, including the right to
make commercial use thereof, for any purpose
ASTERRA deems appropriate.

9. Intellectual Property

9.1 All rights, title and interest in and to the
Service, Platform and the Service’s software,
including, without limitation, patents, copyrights,
trademarks, trade names, service marks, trade
secrets and other intellectual property rights,
and any goodwill associated therewith, including
computer code, graphic design, layout and the
user interfaces of the Service, whether or not
based on or resulting from Feedback, are and will
remain at all times owned by ASTERRA, or
licensed to ASTERRA.

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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 11 All rights in and to the Service or Platform that
are not expressly granted to Client in this
Agreement are hereby reserved by ASTERRA.

9.2 Except for Client’s limited access to use the
Service during the Term, this Agreement does
not grant or assigns to Client, any other license,
right, title, or interest in or to the Service or
Platform, or the intellectual property rights
associated with them.

9.3 Client acknowledges and agrees solely in
connection with Client’s provision of the Service,
ASTERRA is hereby granted a limited, revocable,
nonexclusive, internal, and royalty -free license,
solely during the Term to access, host and
maintain Client Data for the strict limited
purposes of delivering the Service to Client and
supporting Client’s use of the Service as
described herein.

10. Disclaimer; Limitation of Liability;
Indemnification

10.1 The Services, as set forth in this Agreement,
include the provision of information and
investigative output based on the technology
developed by ASTERRA, and subsequent
analyses, recommendations, evaluations,
ranking reports, and guidance on best practices
based on the foregoing. By their nature, the
Services provided are solely decision making and
support tools acquired by Client. Any and all acts,
omissions decisions and performance by Client
based on the Services provided to Client under
this Agreement, are the sole responsibility of
Client and such activity does not form any part of
the Services. By signing the Agreement Client
signals its understanding of the scope of the
Services. The contract is with Utilis Israel Ltd.,
Utilis, Inc., Utilis SAR Ltd and Utilis Japan, as
applicable, also doing business as ASTERRA.

10.2 LIMITATION OF LIABILITY . IN THE

EVENT THAT, NOTWITHSTANDING THE TERMS

ABOVE, ASTERRA IS FOUND LIABLE FOR

DAMAGES OF ANY KIND BASED ON ANY THEORY

OF LIABILITY (INCLUDING LIABILITY FOR

NEGLIGENCE) CONNECTED AND/OR RELATED TO

THE SERVICES COVERED BY THIS AGREEMENT,
ASTERRA’S TOTAL AND AGGREGATE LIABILITY

FOR SUCH DAMAGES SHALL NOT EXCEED THE

PAYMENTS MADE BY CLIENT TO ASTERRA IN THE

TWELVE MONTHS PRECEDING THE EVENT
PURPORTEDLY GIVING RISE TO THE CLAIM.

10.3 EXCLUSION OF CONSEQUENTIAL
DAMAGES. ASTERRA SHALL NOT BE LIABLE

TOWARD CLIENT, OR ANY OTHER THIRD PARTY

FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL

DAMAGES, INCLUDING, WITHOUT LIMITATION,

ANY DAMAGE OR INJURY TO BUSINESS

EARNINGS, LOSS OF DATA, LOST PROFITS OR

GOODWILL AND/OR PERSONAL INJURY,

SUFFERED BY ANY PERSON ARISING FROM

AND/OR RELATED WITH AND/OR CONNECTED

TO THE SERVICES COVERED BY THIS AGREEMENT,

WHETHER BASED ON A CLAIM OR ACTION OF

CONTRACT, TORT, OR OTHERWISE, (INCLUDING

NEGLIGENCE) EVEN IF ASTERRA IS ADVISED OF

OR SHOULD HAVE BEEN AWARE OF THE
POSSIBILITY OF SUCH DAMAGES.

10.4 INDEMNIFICATION

10.4.1 Indemnification by ASTERRA.

Subject to this Agreement and without
derogating from the foregoing, ASTERRA shall
defend and indemnify Client and its respective
directors, officers, employees, consultants,
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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 12 successors and assigns (collectively “ Client
Indemnitee”) from and against any claim by a
third party alleging that the use of the Service as
contemplated under this Agreement, infringes a
third party’s patent, copyright, trade secret or
other intellectual property rights which are
enforceable in the jurisdictions in which the
Client’s support teams operate. Notwithstanding
the foregoing, ASTERRA shall have no liability or
obligation to Client Indemnitees with respect to
any claim for infringement relating to: (1) Client’s
use of the Service in combination with other
products not provided or endorsed by ASTERRA;
(2) modifications or alterations of the Service
which are not performed by ASTERRA or with its
permission; (3) a breach or alleged breach by
Client of its representations, under the
Agreement; in any case of (1) – (3) above, only to
the extent that the Service would not be
infringing in the absence of such circumstances.

10.4.2 Indemnification by Client. Client
shall defend, indemnify and hold harmless
ASTERRA and its directors, officers, employees,
and subcontractors (collectively “ ASTERRA
Indemnitee”), upon ASTERRA’s request and at
Client’s expense, from, and against, any
damages, liabilities, loss, costs, expenses and
payments, including, but not limited to,
reasonable attorney’s fees and legal expenses,
arising out of any claim, suit, action, arbitration
or proceeding brought against ASTERRA
Indemnitee, relating to: (a) a breach or alleged
breach by Client of any of its representations,
warranties, covenants or obligations hereunder;
(b) infringement o r misappropriation of any
intellectual property rights by Client; (c) any
negligence or willful misconduct of Client or its
users or other representatives; or (d) any claims
in connection with the Client Data. To the extent
that the Client is a governmental body, and not
withstanding Section 10.4.3 below, the above
Indemnity obligation will be subject to such
additional conditions that apply to Client under
the applicable law.

10.4.3 The indemnified party shall
promptly notify the indemnifying party in writing
of any claim for which it seeks indemnification
hereunder; provided that the failure to provide
such notice shall not relieve the indemnifying
party of its indemnification obligations
hereunder except to the extent of any material
prejudice directly resulting from such failure. The
indemnifying party shall bear full responsibility
for, and shall have the right to solely control, the
defense (including any settlements) of any such
claim; provided, however, that (a) the
indemnifying party shall keep t he indemnified
party informed of, and consult with the
indemnified party in connection with the
progress of such litigation or settlement and (b)
the indemnifying party shall not have any right,
without the indemnified party’s written consent
(which consen t shall not be unreasonably
withheld), to settle any such claim in a manner
that does not unconditionally release the
indemnified party. At the indemnifying party’s
request, the indemnified party will provide
reasonable cooperation with respect to any
defense or settlement.

11. Term and Termination

11.1 Unless otherwise specified in the applicable
SOW, this Agreement commence s upon the
Client’s date of signature herein or acceptance
date by Client , as applicable . The Service shall
commence on the date on which the relevant
Service is 'live', being the first date on which the
Client or the first of the Client’s users is granted
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access to the Platform’s data , upon a notice by
ASTERRA to Client (“Go – Live- Date”) and will
continue for a period of twelve (12) months
thereafter (“ Initial Term ”), at which point the
subscription will automatically renew for an
additional twelve (12) months period (“Renewal
Term”) (Initial Term and Renewal Term,
collectively, the “ Term”), if not otherwise
terminated earlier pursuant to this section 11 or
if a Party has given a notice of non -renewal at
least sixty (60) days prior to the end of the initial
Term or Renewal Term.

11.2 Notwithstanding the foregoing, either party
may terminate for a material breach by the other
party unremedied for thirty (30) consecutive
days after written notice thereof, at any time.

11.3 Either party may immediately terminate this
Agreement if (A) any proceeding is commenced
in good faith against the other party for any relief
under any bankruptcy or insolvency law, or any
law relating to the relief of debtors, readjustment
of indebtednes s, reorganization, arrangement,
composition, or extension of debts; (B) the other
party commences proceedings for any relief
under any bankruptcy or insolvency law, or any
law relating to the relief of debtors, readjustment
of indebtedness, reorganizat ion, arrangement,
composition, or extension of debts; (C) there is
issued a decree or order of a court having
jurisdiction for the appointment of a receiver,
liquidator, or trustee or assignee in bankruptcy or
insolvency of the other party or of a substant ial
part of the other party’s property, or for the
winding up or liquidation of the other party’s
affairs; or (D) there is a general assignment by the
other party for the benefit of creditors or the
admission by the other party in writing of its
inability to pay its debts generally as they
become due.

11.4 Upon expiration or termination of this
Agreement for any reason : (i) Client will not be
able to access the Services and/or the data
stored within the Platform, the Platform,
ASTERRA’s support and any other software or
data related to the Service. Any and all data not
exported by Client to Client’s own storage, shall
no longer be available to Client afterward; and
payment obligations of Client for Services
provided through the date of termination will
immediately become due. Client data will be
accessible to a returning Client if they renew
their subscription within 12 months of
termination of their previous subscription

11.5 Upon expiration or termination of this
Agreement and in any event, upon ASTERRA’s
written request, Client shall return any and all
Confidential Information including, but not
limited to ASTERRA training materials, and any
and all materials incorporating ASTERRA’s
Confidential Information and all copies and
derivatives thereof.

11.6 Sections 3 -10, 11.4-11.6, 12 and 13 shall
survive any termination of expiration of the
Agreement for any reason.

12. Governing Law
The parties exclusively submit to the (i) governing
law of Delaware or, (ii) solely if the laws that
apply to the client prohibit the application of the
law of Delaware – the law of Client’s principal
place of business, and the exclusive jurisdiction
and venue of the courts of (i) the City of
Wilmington, Delaware, or (ii) if the laws apply to
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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 14

Client prohibit the jurisdiction of the Delaware
Courts – the competent courts of the Client’s
principal place of business. The parties agree that
the United Nations Convention on Contracts for
the International Sale of Goods shall not apply in
any respect to this Agreement or the parties.

Client shall comply with all applicable (including,
all U.S. and applicable foreign) la ws and
administrative regulations relating to the control
of exports of commodities and technical and/or
personal data, and all laws directly or indirectly
applicable to its activities hereunder or
otherwise pursuant to or in connection with this
Agreement, the Licenses or use of any software,
and the provision of any Services and/or support.

13. Miscellaneous
This Agreement may be amended by an
authorized representative of each party in a duly
executed written document referencing this
Agreement and expressing the intent of each
party to amend this Agreement. If any provision
of this Agreement is found to be invalid or
unenforceable, the remaining provisions shall
remain in full force and effect, and this
Agreement shall be deemed amended to replace,
to the extent legally permitted, the rights and
obligations contained in such invalid or
unenforceable provisio n. The invalidity or
unenforceability of any provision shall not
constitute a failure of consideration hereunder.

Any failure or delay in exercising, or any single or
partial exercise of, any right or remedy by either
party hereto shall not be deemed a waiver of any
further, prior, or future right or remedy
hereunder, including the right of such party at
any time to seek such remedies as may be
available for any breach or breaches of such term
or condition. Nothing in this Agreement shall
make either party the agent of the other for any
purposes whatsoever. Except to the extent such
rights cannot be restricted by applicable law,
neither party may assign, sublicense, or transfer
this Agreement without the prior written consent
of the other party, and any such attempt by a
party to sublicense, assign or transfer any rights,
duties, or obligations hereunder is null and void
and subject to the other party’s right to
immediately terminate this Agreement.

Notwithstanding the above, ASTERRA may
assign, sublicense, or transfer this Agreement to
an affiliate of ASTERRA or in connection with the
merger, acquisition, or sale of all or substantially
all of the assets of ASTERRA relating to this
Agreement. This Agreement entered into
between the parties on or around the date of this
Agreement, together with the signed SOW
constitute the entire agreement and
understanding of the parties relating to the
subject matter hereof, super seding all prior or
contemporaneous agreements, representations,
promises, and understandings, whether written,
electronic, oral or otherwise and any additional
or conflicting terms contained in any other
document (including, without limitation, any pre-
printed, additional or conflicting terms on any
Client purchase order, o r acknowledgment from
either party) shall be null, void and of no effect
on either party.

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ANNEX A – AREA OF INTEREST

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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 16

ANNEX B - CSM SERVICES DESCRIPTION LIST AND SLA
Tier: Prevent
Standard Features:
• System-Wide Advanced Temporal and Spatial Leak Analysis - ASTERRA will provide the customer with a system-wide analysis of those locations identified as having a high probability of subsurface leakage using advanced temporal (data collected across time) and spatial (data collected across space) analysis.
• Leak Location List with Prioritization - Each customer will receive a list of potential leaks (Points of Interest, POI’s) for leak detection investigation based on SAR algorithm results and machine learning.
• Customer Portal and Performance Dashboard (4 Licenses) - Licenses for access to EO Discover, ASTERRA’s Customer Portal and Performance Dashboard for tracking leak investigation results over the course of the subscription period.
• U-Collect Software & U-View Software (4 Licenses) - Access to field investigation input and viewing software.
• On-Line Customer Support
• Customer Success Plan - ASTERRA will provide each customer with a customized execution and success plan that will be reviewed and updated over the course of the subscription period. • Best Practice Tutorials (On-Line) - ASTERRA will provide on-line tutorials which cover training and troubleshooting for the customer portal, U-Collect and U-View applications.

Additional Services available to the customer include:

Subcontracted Leak Detection Services - ASTERRA will provide the services of a preferred leak detection vendor subcontracted for 5 -days/40-hour leak detection period. Following ASTERRA’s best practices, identified leak locations will be investigated to pinpoint water loss. The schedule will be coordinated with the vendor and utility by ASTERRA Customer Success Manager.

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ASTERRA US Office, 4180 La Jolla Village Drive, Suite 530, La Jolla, CA 92037, www.asterra.io Page 17 Service Level Agreement (SLA)
This Service Level Agreement (“SLA”) is provided in connection with the Terms of Use governing the use of the ASTERRA’s Services and proprietary Platform (the “Software”). ASTERRA will endeavor to quickly respond to Software support requests and reported Software errors, bugs , or malfunctions (each, an “Inquiry”), and provide a solution to your Inquiry, as set forth in this SLA. Capitalized terms not defined herein shall have the respective meanings as set forth in the Terms of Use.

ASTERRA’s handling and resolution of Inquiries is subject to the following procedure and processes:

1. Inquiries shall be submitted to ASTERRA’s helpdesk by e -mail ( [email protected]), or via the Client’s portal help feature, during ASTERRA’s standard business hours (9:00am to 5PM).

2. When ASTERRA receives notice of an Inquiry from you, along with all pertinent information at your disposal, regarding the Inquiry, ASTERRA will record the time in which the notification was received, during ASTERRA’s business hours indicated above (if the Inquiry is received by ASTERRA outside of its business hours, the Inquiry receipt time will be recorded as 9:00 am on ASTERRA’s next business day - the “Opening Time”).

3. Upon receiving an Inquiry, ASTERRA, using its reasonable judgment, will classify the Inquiry’s severity level as Critical, High, Medium, or Low, in accordance with the following guidelines:
a. Critical – Complete failure of the Software.
b. High – Significant fault in one or more of the primary functionalities of the Software. c. Medium – Features of the Software are partially malfunctioning. d. Low – Minor error or malfunction in the Software.

4. “Response” is ASTERRA’s provision of a preliminary, interim resolution or workaround for the Inquiry, partially alleviating the symptoms reported in the Inquiry. ASTERRA’s response will be in writing via email or via phone contact from the Client’s assigned Customer Success Manager.

5. “Final Resolution” is ASTERRA’s provision of a permanent and full resolution to the Inquiry.

ASTERRA will endeavor, using commercial efforts, to respond to Inquiries as set forth below and to provide a Final Resolution . Response Times are specified in relation to the Opening Time, as recorded in ASTERRA’s logs, as follows:

Priority ASTERRA’s availability to commence
handling the Inquiry
Response Time after
Opening Time
Critical ASTERRA’s business hours 8 hours
High ASTERRA’s business hours 32 hours
Medium ASTERRA’s business hours 3 business days
Low ASTERRA’s business hours 2 business weeks
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16 Consultant/Professional Services Provider Agreement/Utilis Inc. dba Asterra/Project ESC25-070

EXHIBIT B

CONSULTANT’S PROPOSAL

See Attachment

4180 La Jolla Village Dr., #530 San Diego, CA 92037 858.521.9442 US asterra.io

Intelligence to Act
A proposal for the
City of Victorville, CA
Insert Logo of client
9 January 2025
Proposal & Scope of Work
Prepared by Matias Rodriguez, Sales Representative

2 ASTERRA
ASTERRA uses patent-protected technology for infrastructure condition assessment, pipe replacement modeling, and leak detection in urban and rural, water or sewage networks, using L-band synthetic aperture radar (SAR) mounted on a satellite. The technology is based on a proprietary algorithm that detects soil moisture resulting from treated water or wastewater leaks, through the analysis of SAR data. This is of considerable value to industry, governments, and citizens. Because the observation point is orbiting 390 miles above the Earth, this allows for simultaneous monitoring of pipes within a large network.

ASTERRA’s Martian Roots
ASTERRA’s core technology is based on the search for underground water on Mars and other planets. Lauren Guy, a geophysicist , and entrepreneur who developed the approach, quickly recognized the application could be even more effective here on Earth. The water was closer, the need more immediate, and the technology had the potential to solve a number of critical problems. Mr. Guy founded Utilis (now known as ASTERRA) in 2013 to develop applications for the new technology. In 2016, leak detection in underground water systems became the first commercially used application. This solution is now called Recover.

A Revolutionary Change
From an orbiting satellite, our algorithm which is fine-tuned to detect treated drinking water and wastewater, reveals underground leaks as small as 0.2 gallons per minute. Now, managers of underground water infrastructure c an see the water leaking from their systems. Even in the largest cities, it could be seen all at once, with unheard-of speed and efficiency. ASTERRA continues to refine the technology and expand its applications beyond leak detection, adding pipeline monitoring and deficiency analysis as well as property assessment to its growing capabilities .

Impact
ASTERRA actively contributes to the United Nations Sustainable Development Goals, particularly focusing on Goal numbers 6 (Clean Water and Sanitation), 9 (Industry, Innovation, and Infrastructure), and 13 (Climate Action). By leveraging our expertise in satellite -based infrastructure intelligence, we empower organizations to make data-driven decisions and build a resilient and sustainable future. We are dedicated to creating lasting positive change and supporting the achievement of the SDGs globally.

3 Advantages of Ongoing Monitoring
Today, utilities typically survey their system blindly and reactively. This approach yields minimal results which leads many utilities to deprioritize proactive leak detection. Usually, utilities are forced to use limited resources for work orders to find, dig and repair leaks. In most cases, this results in falling further behind the curve and increased pipe breakages. Rather than leak detectors surveying the entire system blindly, Recover guides leak detectors to likely leak locations or points of interest which ASTERRA h as highlighted through their analysis. Now, leak detectors only need to walk 5 -10% of the system where water is already leaking . With a single scan, ASTERRA identifies ~30% of the active leaks in your system. Additional scans allow for ongoing monitoring which will result in more active leaks being identified in your system. Additionally, leaks are continuously arising and enlarging, thus ongoing monitoring will continue to detect more leaks even in areas previously inspected.

Client Benefits & Impact
ASTERRA provides a comprehensive, accurate, and non-invasive remote sensing solution for locating leaks and monitoring any potable water and wastewater system in the world. This works over any type of terrain – flat or hilly; sparsely populated or densely populated high-rises. This is done by extracting information from SAR scans taken high above the ground and converting them into locations of underground potable water or wastewater leaks. Reducing NRW additionally has a positive effect on the environment. By reducing non-revenue water loss, the amount of processing decreases, resulting in a reduction of power use and the associated environmental effects. Locating and fixing wastewater leaks in sewer systems also helps the environment by preventing pollution.

Satellite Radar – Scan Acquisition
Raw scans of the area taken by radar over
Radiometric Corrections
ASTERRA takes the raw scan and prepares

Algorithmic Analysis
ASTERRA’s unique and patented algorithm
Availability to Client
via the EO Discover platform to the client on an ongoing basis, with frequency depending on the

4 ASTERRA’s Solutions
ASTERRA’s solutions include Recover and MasterPlan for potable water and wastewater. All are made available on ASTERRA’s EO Discover platform. Recover and MasterPlan are ASTERRA’s commercial services offered in this proposal. The output from the proprietary algorithm is provided through the analysis of the SAR data combined with other processing techniques owned by Utilis (dba ASTERRA).

Recover for Leak Detection
Recover, the recipient of the AWWA Innovation Award in 2021, is a satellite-based solution for monitoring and detecting leaks in drinking and wastewater systems. It enhances operational efficiency and budget optimization by providing infrastructure intelligence for proactive pipe repair and planning. With Recover, entire city-wide systems can be monitored efficiently.

This advanced technology quickly locates non-surfacing leaks, allowing leak detection crews to focus on targeted repairs instead of unnecessary digging. Compared to traditional methods, Recover identifies more leaks and increases field crew efficiency by up to 400%. It offers the water industry the lowest cost per leak found, averaging 3.5 leaks per crew day compared to 1.3 with traditional acoustic methods. By reducing non-revenue water loss, which amounts to 17 billion gallons annually worldwide, Recover brings significant benefits to companies in the industry.

Furthermore, Recover assists the wastewater sector by mitigating the risks of fines, consent decrees, legal consequences, and reputational damage.

Main benefits of Recover:
• Non-invasive technology: Deployment of sensors or hardware on the ground is not necessary. • ASTERRA technology is effective irrespective of soil type, pipe material, and pipe diameter. • Covers large areas at once. Surveys an entire system in urban and rural areas, while also providing location intelligence at a fine resolution. Identifies potential leaks in areas that traditional acoustic leak detection programs may not typically survey.
• Find more leaks in a shorter period: Increases the efficiency of traditional acoustic leak detection programs by prioritizing work locations and offering quicker response times. • Screening technology that can be used directly or indirectly for condition assessment, asset budget planning and work on structural changes prioritizing network riskier zones. • Identifies background (i.e., non-surfacing) leaks that might otherwise go undetected for long periods of time. • Can fit into either CAPEX or OPEX budgets.
• Provides a positive impact on the environment (reduces water loss, electricity used, and CO2 produced).

5 Recover Insights
At the start of the client’s subscription period, each client is provided access to the EO Discover platform where they can access the data in the form of GIS files, the U-View application, or the dashboard with individual projects and field performance metrics. Each client is also provided access to the U-Collect field investigation application. The platform can be accessed 24/7 during the subscription period to view ASTERRA’s analysis and results of field investigations track success metrics. Recover’s specific features include:

Recover (POI Output): A GIS layer containing the POIs, provided in SHP and KML format for import into any GIS system (client-based, ESRI, or ASTERRA-provided U -Collect and U -View) that can be overlaid on a map displaying streets, pipes, hydrants, valves, and potential leak information.

EO Discover: A link to the EO Discover password-protected platform displaying data and field results, along with monitoring the progress of the project/service progress in real-time.

Temporal and Spatial Analysis: With a single scan, Recover identifies ~30% of the leaks in a given system.

With multiple scans, Recover will identify up to 25% more of the leaks in the given system. Through multiple scans we can identify leak clusters through a temporal and spatial analysis which will aid in maintenance prioritization and asset management plans.

MasterPlan for Pipe Deficiency Assessment
Providing unique insights not available from anyone but ASTERRA, MasterPlan is an actual (not predictive) measurement of non -surfacing pipe leaks. It is pipe agnostic and collected non -invasively by a satellite with wide coverage, often scanning a full system instantaneously. MasterPlan provides actionable insights into your asset management plan in one easy data layer. Trained on five years of leaks discovered using Recover, the new algorithm assesses the deficiency of an entire pipe system using multiple SAR scans over time.

ASTERRA MasterPlan provides a GIS dataset containing pipe deficiency levels derived from SAR data. This solution is based on the same proven patented
algorithm that is used by Recover to detect leaks in
your system but is extended to monitor your system
over time using statistical analysis. The general
process takes all POIs identified in two consecutive
satellite scans (identical coverage and angle) over your area of interest and analyzes the POI results. It then compares the POIs from multiple scans and identifies
the clusters of POIs between them.

These results are processed through a learned statistical algorithm and used to assign pipes a score from low to
high, signifying the level of deficiency observed.

With ASTERRA Masterplan, we can identify critical areas where the client can focus its future pipeline rehab and replacement efforts. These high deficiency areas can be used for asset management planning purposes, e.g.,
capital improvement replacement planning.

6 MasterPlan Insights
MasterPlan provides utilities and engineers with insights into actual pipe conditions. This GIS data layer is compatible and easily integrates into all GIS and GIS -based software. Combine this data with other information, such as pipe age, material, work orders, and consequence of failure to further enhance your replacement planning models or water system master plans.

MasterPlan (Pipe Deficiency Output): A GIS layer containing client pipe segments rated based on condition.

Provided in SHP and KML format for import into a GIS or risk modeling system (Client map displaying streets, pipes, hydrants, valves, and potential leak information ).

EO Discover: Login credentials to the EO Discover’s password -protected platform for viewing the pipe data via GIS or U-View applications and for monitoring pipe deficiency levels.

MasterPlan Pipe Deficiency Assessment: A summary assessment detailing the condition of the client’s pipes based on the GIS data output of pipe scores from low to high deficiency.

U-View Licenses: Licenses are provided for U-View (allows the client to view the data) for the duration of the EO Discover subscription period.

7 Typical Process and Timeline
• After confirmation of the order through t h e contract signature or receipt of a purchase order, ASTERRA will acquire the satellite scan(s). ASTERRA must have the order confirmation at least 21 days prior to the first date of satellite coverage to move forward with the satellite data procurement. The date of the acquisition is subject to the technical and operational constraints of the third -party satellite operation company and may change at any time.
• Before the acquisition, the client will provide ASTERRA with an Area of Interest (AOI). Unless agreed otherwise by the parties, the AOI is a designated geographical area to be surveyed using satellite within the client-provided service area.
• During the period prior to the scan acquisition, the client will provide ASTERRA with a GIS layer of all available treated water or sewage lines in the AOI to be analyzed. If available, the client will also provide a hydrant and valve layer within the AOI.
• Unless otherwise agreed upon by both the parties, ASTERRA will provide services only in the AO I overlapping with the client’s provided GIS pipe system layer. • After acquiring the scan and receiving the GIS pipe layers from the client, data will begin to populate on the EO Discover platform. This is approximately 7 -14 business days after the first scheduled scan acquisition date. Scan acquisition dates may be changed by a third party (satellite operator) or due to technical constraints.

Service start dates may be affected due to poor scan quality according to ASTERRA’s quality assurance standards.
• Where applicable, leak field inspection work can begin after the leakage data has populated on EO Discover on an agreeable date between both parties.

8 PROPOSAL
Scope of Work
The scope of work contained herein details the work and services ASTERRA will provide as well as the roles and responsibilities of both ASTERRA and City of Victorville, CA (“Client”).

Roles, Responsibilities, and Offerings – ASTERRA
ASTERRA will provide Recover data as a service via EO Discover and it will consist of areas identified as potential leaks (i.e., areas containing soil moisture of treated water and/or wastewater underground) using a proprietary satellite imaging algorithm across the Client’s water system. ASTERRA will provide a primary contact person for technical and administrative purposes who will interact with the Client.

ASTERRA’s Responsibilities (“Services”):
• Acquiring and analyzing the satellite scan(s).
• Providing potential leak location data as a service through our password -protected platform, EO Discover.

This data can be exported as GIS data files.
• Providing best practices for field inspection protocols to the Client.

ASTERRA’s Solution for Potable Water:
• Recover (POI Output): GIS layer containing the POIs, provided in GIS data files formatted for import into any GIS system.
• EO Discover: Provides access to monitor and track the progress of the project/service in real time and calculates ROI and impact metrics for ongoing KPI tracking. The license is for the period of service purchased. • U-Collect and U-View Licenses: Provided for each of the following: U-Collect (allows field technician to collect data in the field), and U-View (allows field technician to view data from anywhere). The license is active upon delivery for the period of service. Additional licenses may be purchased and/or the initial license extended at the request of the client.

9 • Kick-off Meeting: Prior to fieldwork, an ASTERRA or ASTERRA -certified team (regardless of if it the client’s team or a contractor), will call a kick -off meeting to agree on the operational field plan to address the Client’s specific needs and the best practices required to get the best results. • Optional: Acoustic Leak Detection for Field Investigation (for Potable Water Pipelines Only) : Based upon selecting this option, ASTERRA will provide a certified subcontracted acoustic leak detection team to investigate the points of interest, provide a list of verified leaks, and mark them for repair. The leak detection field verification team(s) is proficient and experienced in using and operating acoustic equipment. The team should be provided with all the needed tools to access the listening points. • Optional: ASTERRA MasterPlan Pipe Deficienc y Map, provided as a GIS data set , if purchased within the Recover tier available or as an additional service option. • Optional: ESRI Arc GIS Field Maps Integration – data provided in your ESRI ArcGIS online accounts for easy use in ArcGIS Field Maps. (Additional cost may apply if it is not included in the Recover service tier already).

ASTERRA’s Solution for Wastewater
• Recover (POI Output): GIS layer containing the POIs, provided in GIS data files formatted for import into any GIS system.
• EO Discover: Provides access to monitor and track the progress of the project/service in real time and calculates ROI and impact metrics for ongoing KPI tracking. The license is for the period of service purchased. • Kick-off Meeting: ASTERRA or ASTERRA-certified team will call a virtual kick-off meeting to discuss the data delivered and demonstrate the usage of the platform.

10 Roles, Responsibilities, and Offering – Client
The Client is responsible for providing baseline system data, work order history, and in some cases, an acoustic field verification team to inspect POIs identified by ASTERRA. The client shall identify a primary contact person for technical, administrative, and field inspection coordination. ASTERRA agrees to use the information described below only for the client’s specific project and to not share the information with any other third party.

Client Responsibilities
• Pipe System Information for Potable Wate r Lines: Prior to scan acquisition, the Client shall provide ASTERRA with a detail ed and accurate GIS pipe system layer. If GIS is not available, roads will be used to guide the analysis. ASTERRA will use this layer to identify POIs. The GIS layer should include pipe material and diameter, length of pipeline to be analyzed, hydrants, valves, and any other detailed information available. • Pipe System Information for Wastewater Lines: Prior to scan acquisition, the Client shall provide ASTERRA with a detailed and accurate GIS pipe system layer. If GIS is not available, roads will be used to guide the analysis. ASTERRA will use this layer to identify POI locations. The GIS layer should include pipe material and diameter, forced and/or gravity lines, length of pipeline to be analyzed, manholes, depth, and any other detailed information available.
• Leak Detection History (Work Orders): The Client shall provide ASTERRA with a detailed and accurate history of leak findings and repairs beginning one (1) week before the date the first satellite scan is acquired and through the project life cycle.
• Leak Detection Performance Metrics for Potable Water Lines: The Client shall provide ASTERRA with relevant and available performance metric data related to previous Client-utilized leak detection methodologies.

This information will be used to calculate value metrics of the service and will be provided to the Client in the final report for their use.

11 Client Services for Potable Water
Areas of Interest (AOI)
During this service, ASTERRA will survey the Area of Interest (AOI) to be determined by the client, contained to 775 linear miles of mains and service pipes as outlined in the image below:

Once ASTERRA receives the full GIS pipe system information from the client, the pipe and total miles analyzed per delivery will be identified. Note: both main and service lines will be counted for total pipe length calculation.

12 Subscription-Based Service Packages
ASTERRA’s Recover solution and features are provided via a subscription to EO Discover with an option to select one of two district levels of service (Prevent or Advise). Each service level contains specific features designed to meet clients’ current and future needs, with additional add-on services available.

Prevent Advise
4 licenses: EO discover 6 licenses: EO discover
Base line leak analysis Base line leak analysis
Leak Locations Leak Locations
U-collect/U-View Apps (4
licenses)
U-collect/U-View Apps (6
licenses)
Temporal and Spatial leak
Analysis
Enhanced Temporal and
Spatial leak Analysis
Prioritized Leak locations
for field investigation
Prioritized Leak locations
for field investigation
MasterPlan Pipe
Deficiency Map
ESRI ArcGIS Field Maps
Compatibility
Personal Success Manager

Always Included: Online support, customized success plan, best practices tutorials

13 Pricing
Area of interest (AOI) for analysis:

Potable Water lines: 775 miles

Prevent

Advise

QTY Price QTY Price
Package 12 months $86,615 12 months $128,000
Subcontracted Acoustic Leak Detection
Team - BOTG (40 hours/ 5 Days)
40 days $80,000 40 days $80,000
Package Total $166,615 $208,000

Proposal is valid until: January 31st, 2025

Note: Once a package is selected, please contact ASTERRA sales team for terms of use and signature processing.

Item Number: 17
City Council / Board of Directors
Written Communications
Meeting of: January 21, 2025
Submitted By:

C. Eric Ray, Airport Director
Subject:

Building 321 Interior Demolition, Construction Agreement, Project #CC25-043 Recommendation:

That the Southern California Logistics Airport Authority Board of Directors approve a Construction Agreement with Vertex Civil LLC for Building 321 Interior Demolition, Project #CC25-043, with the total compensation not to exceed $468,512.26.

Fiscal Impact:

The award of this agreement will result in the expenditure of budgeted funds from the Off- Airport Operations Account 4520145-55060-95143 in the amount not to exceed $468,512.26. The current available budget is outlined below:

Current Budget
Balance
4520145-55060-95143 Building 321 Restorative Demolition $498,098.12 Strategic Plan Goal:

Goal E. Invest in Infrastructure: Project #CC25-043 invests in infrastructure by removing numerous safety hazards to provide an unblemished building that can someday become a revenue generating asset for the Airport.

Background:

Building 321 at the Southern California Logistics Airport, located on Sabre Boulevard outside of the Airport Operations Area, is a 56,664 square foot structure, comprising a ground level, 2nd story level, and bomb shelter style basement. Constructed in 1987, the building served as the George Air Force Base headquarters. After the unfortunate closure of George Air Force Base in 1992, the property sadly fell into disrepair and has been subject to trespassers breaking windows, damaging and vandalizing interior walls, including rampant thievery of copper wiring and anything of general value. 3 8
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The building has been described by surrounding business owners as an eyesore and safety hazard to both trespassers and nearby businesses. Representatives from the neighboring businesses have requested that this untenable situation be remedied.

Airport staff set out to remedy the ongoing vandalism and secure the building. Staff concluded that the best solution to prevent further damage to this building is the demolition and removal of the non-structural components of the building. Exterior graffiti will be removed to further enhance the aesthetics of the building. Performing this demolition work will improve safety and remove a source of blight in the area until such time that sufficient interest exists to occupy the building and it is remodeled and prepared for leasing.

Discussion:

A demolition project of this size and scope requires the skills of an experienced, licensed contractor. To procure a contractor, Staff worked with the City Purchasing team to develop a solicitation package in compliance with City Municipal Code 2.28.200. Staff advertised the Project on October 15, 2024 and October 22, 2024 in the San Bernardino Sun and The Daily Press. Staff conducted a formal, mandatory pre-bid meeting and Job walk for Building 321 Interior Demolition, Project #CC25-043 on October 29, 2024, which was attended by 16 contractors. On December 10, 2024, staff received and opened seven (7) bids for the project which are listed as follows:

Company: Location: Bid:

Vertex Civil LLC Irvine, CA $468,512.26
Bob Walters Jr. Construction Inc. Victorville, CA $475,000.00 Integrated Demolition and Remediation Inc. Anaheim, CA $484,000.00 Brickley Construction Company Inc. San Bernardino, CA $595,000.00 Resource Environmental, Inc. Cerritos, CA $665,810.00
Unlimited Environmental, Inc. Santa Fe Springs, CA $855,000.00 PARC Environmental Fresno, CA $1,390,000.00
Staff carefully evaluated each bid in accordance with Municipal Code 2.28.040 and determined that the best value bidder was Vertex Civil LLC, on account of their experience, qualifications, and lowest overall price.

Therefore, staff requests and recommends that the SCLAA Board of Directors approve the Construction Agreement by and between the SCLAA and Vertex Civil LLC, for Building 321 Interior Demolition, in the amount not to exceed $468,512.26.

Staff remains available for any questions or comments you may have.

CER/see
3 8
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Attachments: A. Site Map
B. Construction Agreement
C. Vertex Civil LLC Bid Proposal Price Schedule
D. Municipal Code 2.28.200
E. Municipal Code 2.28.040

ATTACHMENT A

SITE MAP

BLDG 321

ATTACHMENT B

CONSTRUCTION

AGREEMENT
1 Construction Agreement/Vertex Civil, LLC/Project CC25-043

CONSTRUCTION AGREEMENT

BY AND BETWEEN

THE SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY
AND

VERTEX CIVIL LLC
FOR
BUILDING 321 INTERIOR DEMOLITION, PROJECT CC25-043

THIS CONSTRUCTION AGREEMENT (the “Agreement”) dated this ________ day of ______________, 2025, for reference purpose only, is made and entered into by and between the Southern California Logistics Airport Authority, a joint powers authority located in the County of San Bernardino, State of California, hereinafter referred to as “SCLAA ”, and Vertex Civil, LLC, a Limited Liability Company formed in Delaware, hereinafter referred to as the “Contractor”. The SCLAA and the Contractor are sometimes hereinafter referred to as a “Party” and collectively referred to as the “Parties.”

RECITALS:

WHEREAS, the SCLAA requires Building 321 Interior Demolition, Project CC25- 043 (the “Project”); and

WHEREAS, in light of the facts set forth above, the SCLAA desires to retain Contractor in connection with Building 321 Interior Demolition.

NOW, THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS, AND

PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS

The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth herein.

Section 2. TERM OF AGREEMENT

This Agreement shall commence within Fifteen (15) Calendar Days after issuance of Notice to Proceed (the “Commencement Date”) and shall terminate upon completion of the Project Sixty (60) Calendar Days after Commencement Date (the “Termination Date”), unless sooner terminated in accordance with the provisions of this Agreement (the “Term”). From and after the Termination Date, and upon subsequent Agreement by the Parties, this Agreement may continue on a month-to-month basis until terminated pursuant to Section 3 below.

Section 3. TERMINATION OR SUSPENSION

a. This Agreement may be terminated or suspended without cause by either Party at any time, provided that the Party initiating the termination provides the other Party at least thirty (30) days advance written notice of s uch termination or suspension. In the event of such termination, the SCLAA shall only be liable for payment under the payment provisions of this 2 Construction Agreement/Vertex Civil, LLC/Project CC25-043

Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

b. This Agreement may be terminated or suspended with cause by either Party at any time, provided that the Party initiating termination provides the other Party at least ten (10) days advance written notice of such termination or suspension. In the event of such termination, the SCLAA shall only be liable for payment under the payment provisions of this Agreement for satisfactory work rendered or supplies actually furnished prior to the effective date of termination.

Section 4. CONTRACT DOCUMENTS; PRIORITY

a. Contract Documents. The Contract Documents consist of the following documents, all of which are either attached hereto as exhibits or are incorporated herein by this reference.

Said Contact Documents are intended to be correlative and constitute Contractor’s performance obligations:

1. This Agreement.

2. Exhibits A & B.

3. Notice Inviting Bids for the Project.

4. Special Provisions.

5. Faithful Performance &Payment Bonds

6. Non-Collusion Declaration.

7. Guaranty.

b. Interpretation. In the event of any conflict between any of the Contract Documents, the document highest in the order of precedence (from highest to lowest), as set forth in Subsection 4.a above shall control.

Section 5. CONTRACTOR’S OBLIGATIONS

Contractor shall complete the Project as specifically set forth in the Contract Documents.

Contractor shall furnish, at its own cost and expense, all labor, services, material, tools, equipment, supplies, transportation, and any other items and facilities necessary therefore, as provided in the Contract Documents.

Section 6. COMPENSATION

The Contractor agrees to receiv e and accept the following amount, not to exceed Four Hundred Sixty-eight Thousand Five Hundred Twelve and 26/100 Dollars ($468,512.26), as full compensation for furnishing; all materials, doing all the work contemplated and embraced in this contract, all loss or damage arising out of the nature of the work aforesaid, the action of the elements, any unforeseen difficulties or obstructions which may arise or be encountered in the execution of the work until its acceptance by the SCLAA, and for all risks of every description connected with the work, all expenses incurred by or in consequence of the suspension or discontinuance of work well and faithfully completing the whole work, thereof, according to the requirements of the Contract Documents and to the satisfaction of C. Eric Ray, Airport Director, or his designee, to wit: See Exhibit “A”, Scope of Work.

Section 7. BID PROPOSAL FORMS

The SCLAA shall pay Contractor as provided in the Bid Proposal Forms, attached hereto 3 Construction Agreement/Vertex Civil, LLC/Project CC25-043

as Exhibit “B”, and incorporated herein by this reference as though set forth in full, subject to approval of the SCLAA, when applicable.

Section 8. PREVAILING WAGES

a. Compliance with State Prevailing Wage Law. Pursuant to California Labor Code Section 1773, the SCLAA has obtained from the Director of the Department of Industrial Relations (“DIR”) the general prevailing rate of per diem wages and the general prevailing wage rate for holiday and overtime work applicable for each craft, classification, or type of worker in San Bernardino County, California, where the Project is to be performed. Copies of these prevailing rate of per diem wages are on file at the City of Victorville Finance Department/Purchasing Division and shall be made available for review to any interested party on request. Copies of these prevailing rate of per diem wages are also available from the State of California via the internet at
http://www.dir.ca.gov/DLSR/PWD. Contractor and its subcontractors shall pay not less than said specified prevailing rate of per diem wages to all workers employed by them in the performance of any work under this Agreement which constitutes “public works” or “public work”, including without limitation, Building 321 Interior Demolition, and any other work or servic es described in or encompassed by California Labor Code (“Labor Code”) Sections 1720 through 1720.9, 1771, and 1772. Contractor shall be solely responsible for using the correct and current prevailing wage rates and performing accordingly. An error on the part of any awarding body does not relieve the Contractor from the responsibility for payment of the correct prevailing wage, or compliance with the maintenance and inspection of payroll records, posting of prevailing wage rates at the work/job site, employment of apprentices, and other requirements of Labor Code Section 1720 et seq .; Labor Code Section 1810 et seq .; California Code of Regulations, Title 8, Section 16000 et seq.; and all other applicable State labor laws.

b. Designation as Contractor Not Determinative . For purposes of this Agreement, Contractor and its subcontractors shall be subject to and shall comply with all provisions of the Labor Code applicable to contractors and subcontractors when they are engaged in the performance of any work under this Agreement which constitutes “public works” or “public work” as defined in subsection a above, despite being designated as a Contractor.

c. Conflict. It is further expressly agreed by and between the Parties hereto that should there be any conflict between the provisions of this Section and the terms of Exhibit “A” or Exhibit “B” of this Agreement, the provisions of this Section shall control and nothing herein shall be considered as an acceptance of the terms of Contractor’s Scope of Services, scope of work, bid proposal, cost proposal, and/or fee schedule which conflict with the provisions of this Section.

d. Payroll Records. Contractor and its subcontractors must comply with the provisions of Labor Code sections 1776 and 1812 and all implementing regulations, including without limitation, those set forth in Title 8 of the California Code of Regulations, Section 16000 et seq . (hereinafter the “Regulations”), which are fully incorporated by this reference, including requirements for electronic submission of payroll records to the DIR.

(1) Contractor and Subcontractor Obligations. Contractor and each subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified 4 Construction Agreement/Vertex Civil, LLC/Project CC25-043

by a written declaration that it is made under penalty of perjury, stating both of the following:

(a) The information contained in the payroll record is true and correct; and

(b) Contractor or subcontractor has complied with the requirements of Labor Code Sections 1771, 1811, and 1815 for any covered work performed by its employees on the Project.

(2) Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to the SCLAA, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.

(3) Enforcement. Upon notice of noncompliance with Labor Code Section 1776, Contractor or subcontractor has ten days in which to comply with the requirements of this section. If Contractor or subcontractor fails to do so within the ten- day period, Contractor or subcontractor will forfeit a penalty of $100.00 per day, or portion a day, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Contractor.

(4) Payment of Invoices . Copies of the certified payrolls, proof of payroll submissions, and appropriate lien releases are required with each invoice to the SCLAA.

Payment of the invoice may be delayed when payroll -related documents and/or lien releases are not included with the invoice.

e. Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code section 1777.5, which is fully incorporated by reference.

f. Notices. Pursuant to Labor Code section 1771.4, Contractor is required to post all Job Site notices, including prevailing wage rates and other notices, as required by regulation.

g. Other Labor Requirements. Contractor has the responsibility for and shall comply with all other applicable requirements of Labor Code Section 1720 et seq., Labor Code Section 1810 et seq., the Regulations, and all other applicable State labor laws. Contractor further acknowledges and agrees that it will be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with those laws. Contractor shall require the same of all its subcontractors.

h. Statutory Penalties. The statutory penalties for failure to pay prevailing wage or to comply with State wage and hours laws will be enforced as follows:

(1) Pursuant to Labor Code section 1775, the Contractor and any subcontractor under it shall forfeit as a penalty to the SCLAA not more than Two Hundred Dollars ($200.00), for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or craft in which such worker is employed for any public work done under this Agreement by it or by any subcontractor under it. The difference between such prevailing wage rate and the 5 Construction Agreement/Vertex Civil, LLC/Project CC25-043

amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.

(2) Pursuant to Labor Code Section 1813, Contractor or subcontractor shall, as a penalty to the SCLAA, forfeit twenty -five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week, except as specified in Labor Code Section 1815. In accordance with the provisions of Labor Code Section 1810 et seq., eight (8) hours is the legal working day.

i. DIR Monitoring. Pursuant to Labor Code Section 1771.4, the Agreement for this Project is subject to compliance monitoring and enforcement by the DIR.

j. DIR Registration . Pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and its subcontractors must be registered with the DIR prior to the execution of a contract to perform public works. By entering into this Agreement, Contractor represents that it is aware of the registration requirement and is currently registered with the DIR. Contractor shall maintain a current registration for the duration of the Project. Contractor shall further include the requirements of Labor Code Sections 1725.5 and 1771.1 in any subcontract and ensure that all subcontractors are registered at the time this Agreement is enter ed into and maintain registration for the duration of the Project.

Section 9. W ORKERS’ COMPENSATION INSURANCE

Contractor shall procure and maintain, at its own expense, during the Term of this Agreement, workers’ compensation insurance, providing coverage as required by the California State Workers’ Compensation Law. If any class of employees employed by Contract or is not protected by the California State Workers’ Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the SCLAA.

In conformance with current statutory requirements of Section 1860 et seq., of the Labor Code of the State of California, the undersigned confirms the following as their certification:

I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions before commencing the performance of the work of this contract.

Section 10. NOTICE TO PROCEED

No work, service, material, or equipment shall be performed or furnished under this Contract unless and until a Notice to Proceed has been given to the Contractor by the SCLAA.

Contractor shall commence work pursuant to the Contract Documents as directed by the SCLAA in the Notice to Proceed, and to diligently execute the same to completion within the time limits set forth in the Contract Documents.

Section 11. COMPLIANCE WITH LAWS

Contractor shall comply with all local, state, and federal laws and regulations applicable to the performance of the work required by the Contract Documents, including any rule, 6 Construction Agreement/Vertex Civil, LLC/Project CC25-043

regulation, or bylaw governing the conduct or performance of Contractor, its employees, officers, board members, agents, independent contractors, and subcontractors. Unless otherwise specified in the Contract Documents, all required permits and licenses shall be held or obtained by the Contractor at its sole expense.

Section 12. COMMERCIAL GENERAL, AUTOMOBILE AND POLLUTION

LIABILITY INSURANCE

Contractor shall procure and maintain at its own expense, during the term of this Agreement, com mercial general liability insurance, of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss, or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers, and agents and independent contractors.

Contractor shall further procure and maintain, at its own expense, during the Term of this Agreement, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) Combined Single Lim it, covering any vehicle(s) utilized by Contractor or its officers, employees, servants, volunteers, or agents and independent contractors in performing the services required by this Agreement.

If the project entails the handing or use of hazardous material, Contractor shall further procure and maintain, at its own expense, during the Term of this Agreement, pollution liability insurance of not less than One Million Dollars ($1,000,000).

Section 13. POLLUTION LIABILITY

Contractors Pollution Liability and/or Asbestos Pollution Liability and/or Errors & Omissions applicable to the work being performed, with a limit no less than $1,000,000 per claim or occurrence and $1,000,000 aggregate per policy period of one year.

Section 14. INSTALLATION FLOATER

Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom it performing any work under this agreement shall purchase, and maintain insurance to the full contract and insurable value thereof commonly referred to as an Installation Floater policy that offers “Installation” coverage for all materials, supplies, equipment, and property obtained by, or for Contractor, which is to become part of the work while such equipment and property is stored at the jobsite, at temporary locations, or while in transit to the project from such temporary locations. Contractor, and or any of its subcontractors, suppliers, vendors, employees, or person whom is performing any work under this agreement shall also be responsible for insuring their owned, leased/rented or borrowed equipment. Insurance shall name the City as a Loss Payee as their interest may appear, and include a Waiver of Subrogation Endorsement(s) in favor of the City of Victorville.

Section 15. ADDITIONAL INSURED

Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers' Compensation coverage, shall bear an endorsement whereby it is provided that, the SCLAA, the City of Victorville and their officers, employees, servants, volunteers, and agents 7 Construction Agreement/Vertex Civil, LLC/Project CC25-043

and independent contractors, including, without limitation, the Authority Legal Counsel , are named as Additional Insureds.

Section 16. WAIVER OF SUBROGATION RIGHTS

Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the SCLAA , the City of Victorville and their officers, volunteers, employees, contractors, and subcontractors. Each policy of insurance shall be endorsed to reflect such waiver.

Section 17. PROOF OF INSURANCE COVERAGE; REQUIRED PRIOR TO

COMMENCEMENT OF SERVICES

a. Contractor shall secure from a good and responsible company or companies authorized to do insurance business in the State of California the policies of insurance required by this Agreement and furnish to the Authority Secretary certificates of said insurance at least one (1) day prior to the commencement of any work to be performed under this Agreement.

b. The certificates of insurance shall bear an endorsement whereby it is provided that, in the event of cancellation or amendment of any required insurance policy for any reason whatsoever, the SCLAA shall be notified by mail, postage prepaid, not less than thirty (30) days before the cancellation or amendment is effective. In the case of non -payment, ten (10) days’ advance written notice shall be given.

c. The certificates of insurance shall bear an endorsement whereby it is provided that the respective insurance policy shall not be terminated or expire without first providing thirty (30) days written notice to the SCLAA of such termination or expiration.

d. The commercial general liability and vehicle liability policies shall be endorsed to contain the following provision: “For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the SCLAA, its officers, officials, employees, and volunteer s. Any insurance or self -insurance maintained by the SCLAA, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.”

Section 18. TIME OF THE ESSENCE

Time is of the essence in the performance of this Agreement.

Section 19. INDEMNIFICATION

Notwithstanding the limits of any insurance, Contractor shall indemnify the SCLAA, its officials, officers, agents, volunteers and employees against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities, (herein "claims or liabilities") that may be asserted or claimed by any person, firm or entity arising or alleged to arise out of or in connection with the negligent performance of the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising or alleged to arise from the negligent acts or omissions of Contractor hereunder, or arising or alleged to arise from Contractor's negligent performance of or failure to perform any term, provision, covenant or 8 Construction Agreement/Vertex Civil, LLC/Project CC25-043

condition of this Agreement, but excluding such claims or liabilities or portion of such claims or liabilities arising or alleged to arise from the negligence or willful misconduct of the SCLAA its officials, officers, agents, volunteers or employees, and in connection therewith:

a. Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;

b. C ontractor will promptly pay any judgment rendered against the SCLAA, its officials, officers, agents or employees for any such claims or liabilities arising or alleged to arise out of or in connection with Contractor's (or its agents', employees', subcontractors' or invitees') negligent performance of or failure to perform such work, operations or activities hereunder; and Contractor agrees to save and hold the SCLAA, its officials, volunteers, officers, agents, and employees harmless there from;

c. In the event the SCLAA, its officials, officers, agents, volunteers or employees is made a Party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising or alleged to arise out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor shall pay to the SCLAA, its officials, volunteers officers, agents or employees, any and all costs and expenses incurred by the SCLAA, its officer s, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees for counsel acceptable to the SCLAA;

d. Contractor's duty to defend and indemnify as set out in this Section shall include any claims, liabilities, obligations, losses, demands, actions, penalties, suits, costs, expenses or damages or injury to persons or property arising or alleged to arise from, in connection with, as a consequence of or pursuant to any state or federal law or regulation regarding hazardous substances, including but not limited to the Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA"), Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), Resource Conservation and Recovery Act of 1976 ("RCRA"), the Hazardous and Solid Waste Amendments of 1984, the Hazardous Material Transportation Act, the Toxic Substances control Act, the Clean Air Act, the Clean Water Act, the California Hazardous Substance Account Act, the California Hazardous Waste Control Law or the Porter -Cologne Water Quality Control Act, as any of those statutes may be amended from time to time;

The Contractor's indemnification obligations pursuant to this Section shall survive the termination of this Agreement. Contractor shall require the same indemnification from all subcontractors.

Section 20. REPORTS

Upon request by C. Eric Ray , Airport Director , or his d esignee, Contractor shall prepare and submit reports concerning Contractor's performance of the work required by this Agreement.

Section 21. RECORDS

a. Contractor shall keep such books and records as shall be necessary to perform the services required by this Agreement and enable C. Eric Ray , Airport Director , or his designee, to evaluate the cost and the performance of such services. 9 Construction Agreement/Vertex Civil, LLC/Project CC25-043

b. Books and records pertaining to costs shall be kept and prepared in accordance with generally accepted accounting principles.

c. C. Eric Ray, Airport Director, or his designee, shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.

d. Records and supporting documents pertaining to the use of funds paid to Contractor hereunder shall be retained by Contractor and made available t o C. Eric Ray , Airport Director, or his designee, for purposes of performing an audit for a period of five (5) years from the date of termination of this Agreement.

Section 22. MODIFICATIONS AND AMENDMENTS

This Agreement may be modified or amended only by a written instrument signed by both Parties.

Section 23. ENTIRE AGREEMENT

a. This Agreement supersedes any and all prior or contemporaneous Agreement s, either oral or written, between the SCLAA and Contractor with respect to the subject matter of this Agreement.

b. The Contract Documents contain all of the covenants and Agreement s between the Parties with respect to the subject matter herein, and each Party acknowledges that no representations, inducements, promises, or Agreements have been made by or on behalf of any Party, except those covenants and Agreements in this Agreement and the Contract Documents.

c. No Agreement, statement, or promise with respect to the subject matter of the Contract Documents, which is not contained in the Contract Documents, or in a valid modification or amendment to the Contract Documents, shall be valid or binding on either Party.

Section 24. AMBIGUITIES

This Agreement is in all respects intended by each Party hereto to be deemed and construed to have been jointly prepared by the Parties and the Parties hereby expressly agree that any uncertainty or ambiguity existing herein shall not be interpreted agains t either of them. Except as expressly limited by this paragraph, all of the applicable rules of interpretation of contract shall govern the interpretation of any uncertainty or ambiguity of this Agreement.

Notwithstanding the foregoing, the Parties agree that Exhibit “B” are attached hereto for reference purposes and to the extent there are any ambiguities, inconsistencies or conflicts between the terms of this Construction Agreement and Exhibit “B”, the terms of this Construction Agreement shall control and nothing set forth in Exhibit “B” shall be deemed to supersede any of the provisions of this Construction Agreement.

Section 25. NOTICES

a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, 10 Construction Agreement/Vertex Civil, LLC/Project CC25-043

certified or registered, return receipt requested, with postage prepaid, and addressed to the Parties as follows:

To the SCLAA: C. Eric Ray, Airport Director
Southern California Logistics Airport Authority
18374 Phantom West
Victorville, CA 92394

To Contractor: Jeremy Coriale, Chief Operating Officer
Vertex Civil LLC
2711 Michelson Drive, Suite 350
Irvine, CA 92612

b. Notices, payments, and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 26. NON-LIABILITY OF THE SCLAA OFFICERS AND EMPLOYEES

No officer or employee of the SCLAA shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by the SCLAA or for any amount, which may become due to Contractor or to its successor(s), or for any breach of any obligation of the terms of this Agreement.

Section 27. REVIEW BY ATTORNEYS

Each Party hereto has had its attorneys review this Agreement and all related documents. Each Party hereto has consulted with its attorneys and has negotiated the terms of this Agreement based on such consultation.

Section 28. CARE OF WORK

Contractor must adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and other components to prevent losses or damages, and will be responsible for all damages, to persons or property, until acceptance of the work by the SCLAA, except those losses or damages as may be caused by the SCLAA’s own negligence. The performance of the work by Contractor or the payment of money by the SCLAA shall not relieve Contractor fr om any obligation to correct any incomplete, inaccurate, or defective work at no further cost to the SCLAA, when such inaccuracies are due to the negligence of Contractor.

Section 29. CAPTIONS AND HEADINGS

11 Construction Agreement/Vertex Civil, LLC/Project CC25-043

Section 30. SUCCESSORS, HEIRS, AND ASSIGNS

Except as otherwise expressly provided herein, this Agreement shall be binding upon the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties to this Agreement and, likewise, shall inure to the benefit of the successors, endorsees, assigns, heirs, and personal representatives of each of the Parties. This Agreement may not be assigned or transferred by Contractor without the concurrence of the surety and express written consent of the SCLAA, which may be withheld in the SCLAA’s sole discretion since the experience and qualifications of Contractor were material considerations for this Agreement.

Section 31. GENDER; PLURAL

In this Agreement, unless the context clearly requires otherwise, the masculine, feminine and neuter genders and the singular and the plural shall include one another.

Section 32. SEVERABILITY

Section 33. GOVERNING LAW

Section 34. CUMULATIVE REMEDIES

Section 35. VENUE

Section 36. ATTORNEY'S FEES

Should any litigation, specifically including but not limited to, arbitration and other non- judicial resolution of disputes be commenced between the Parties to this Agreement concerning this Agreement or the rights and duties of either in relation thereto, the Parties prevailing in such litigation or other proceeding shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for attorney fees in such litigation where the proceeding which, if not 12 Construction Agreement/Vertex Civil, LLC/Project CC25-043 agreed upon by the Parties, shall be determined by the court or other entity in which such litigation or other proceeding is brought.

Section 37. EFFECTIVENESS OF AGREEMENT
Thi
s Agreement shall not be binding upon the SCLAA, until signed by the authorized representative(s) of Consultant, approved by the Authority Risk Manager, and executed by the authorized the SCLAA personnel or Authority Chairman.

Section 38. REPRESENTATIONS OF PARTIES AND PERSONS

EXEC UTING AGREEMENT
a. E
ach of the Parties to this Agreement hereby represents that all necessary and appropriate actions of their governing bodies have been taken to make this Agreement a binding obligation of each of the Parties hereto.
b. The
persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and bind the Parties each purports to represent.

Section 39. COUNTERPARTS
Thi
s Agreement may be executed by the Parties in counterparts, and when executed by each of the Parties, each counterpart shall be deemed to be a part of this Agreement.

Section 40. CARB COMPLIANCE OBLIGATIONS
a. CARB Regulations. Contractor is aware of the California Air Resources Board (“CARB”) regulations mandating various emission reduction requirements. Service Provider agrees to comply with all applicable CARB regulations (Title 13, Division 3 of the California Code of Regulations (“CCR”)) prior to commencing any work hereunder and maintain compliance throughout the duration of this Agreement.
(1) V
ehicles with a Gross Vehicle Weight Rating (GVWR) greater than 8,500 lbs. and light -duty package delivery vehicles operated in California may be subject to CARB’s Advanced Clean Fleets regulations. Such vehicles may therefore be subject to requirements to reduce emissions of air pollutants. For more information, please visit the CARB Advanced Clean Fleets (ACF) webpage at https:/ /ww2.arb.ca.gov/our- work/programs/advanced-clean-fleets
.
(2) E
ffective January 1, 2024, CARB implemented amendments to the In- Use Off- Road Diesel- Fueled Fleets Regulation (13 CCR Section 2449 et seq., the “Off- Road Regulation”) which apply broadly to al l self -propelled off road diesel vehicles 25 hor
sepower or greater and other forms of equipment used in California (including any vehicles or equipment that is rented or leased). The Off-Road Regulation is available at:
https://ww2.arb.ca.gov/sites/default/files/barcu/regact/2022/off-roaddiesel/appa-1.pdf. b. C
ontractor must comply with all CARB regulations and requirements, including without limitation, all applicable sections of the Off -Road Regulation (as codified in 13 CCR Section 2449 et seq.) throughout the term of the Project and this Agreement. Contractor shall be solely liable for all costs associated with complying with the regulations, as well as for any and all penalties, fines, damages, or costs associated with violations or failures to compl y with the 13 Construction Agreement/Vertex Civil, LLC/Project CC25-043

regulations. Contractor shall defend, indemnify, and hold harmless the SCLA and the City of Victorville, its elected and appointed officials, officers, agents, and employees from and against any and all claims, liabilities, costs, penalties, int erest or other damages arising out of Contractor’s failure or alleged failure to comply with CARB regulations.

(END OF THIS PAGE)
14 Construction Agreement/Vertex Civil, LLC/Project CC25-043

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the dates written below.

SOUTHERN CALIFORNIA LOGISTICS VERTEX CIVIL LLC

AIRPORT AUTHORITY

By: _________________________________ By: ________________________________ Elizabeth Becerra, Jeremy Coriale,
Authority Chairman Chief Operating Officer

Dated: ______________________________ Dated: ______________________________

ATTEST

By:

Jennifer Thompson,
Authority Secretary

Dated: ______________________________

By: ________________________________
Sandra Bostick,
Authority Risk Manager

Dated: _____________________________

APPROVED AS TO STANDARD FORM:

By: ________________________________
Andre de Bortnowsky,
Authority Legal Counsel

Dated: _____________________________

15 Construction Agreement/Vertex Civil, LLC/Project CC25-043

EXHIBIT A

SCOPE OF WORK

SCLAA agrees to engage Contractor and Contractor agrees to furnish all necessary labor, tools, materials, and equipment for and to do the Work for the Project. The Work shall be performed (i) as generally described in the Request for Bid, Project Number CC25-043 and applicable Addenda, for the Project, portions of which are attached hereto for ease of reference as Exhibit "A”, and the entirety of which is currently on file in office of the Authority Secretary); and (ii) the prices set forth in Contractor’s Bid Proposal (attached as Exhibit "B").

See Attachment

SOUTHERN CALIFORNIA LOGISTICS AIRPORT AUTHORITY ( SCLAA) CC25-043 BUILDING 321 INTERIOR DEMOLITION
This
project involves the demolition of Building 321 interior, while preserving the existing exterior shell.

Building 321 is approximately 56,664 sq. ft., two stories, and a basement. The Contractor shall remove all non-structural interior elements, including but not limited to interior partition walls and framing, ceilings and ceiling tiles, flooring material, interior doors, windows, and fixtures, mechanical, electrical, and plumbing systems. The Contractor shall protect in place the elevator and elevator shaft liner. The Contractor shall avoid damages to the exterior shell, load-bearing walls, and structural elements. The Contractor shall cap all electricity, gas, water, sewer, and telecommunications. Demolition operations shall be in accordance with State, federal, and local regulations. The Contractor shall sort and separate demolition debris for recycling and disposal in accordance with Federal, State, local regulations. The Contractor shall transport and dispose of all demolition materials to a licensed facility and provide SCLAA with weight ticket. The Contractor shall remove all graffiti on the exterior walls of Building 321. The Contractor shall clean the interior space thoroughly after demolition is complete, removing dust, debris, and any remaining equipment. The Contractor shall clean up all broken glass around the outside of the building. The Contractor shall be responsible for confirming all building dimensions and square footage of the building prior to bidding. The Contractor shall be responsible for the security of their equipment at all times.

Gener
al Provision
• Mobilization shall be limited to 6 percent of the grand total project cost. • A working day shall be any day other than a legal holiday, Saturday, or Sunday on which the normal working forces of t he Contractor may proceed with regular work for at least (6) hours toward completion of the contract. When work is suspended for causes beyond the Contractors control, it shall not be counted as a working day. Saturdays, Sundays, and holidays on which the Contractors forces engage in regular work shall be considered as working days. Working days for this project shall be Monday-Friday, 6:30 A.M. until 4:30 P.M.
• The Contractor shall obtain a City of Victorville business license. • The SCLAA shall obtain Building permits and the Mojave Desert Air Quality Management District permit prior to commencing work.
• The Contractor shall be required to furnish all labor, equipment, supplies, transportation, and storage to perform all operations necessary to complete the project. • The Contractor shall be responsible for hauling away all debris from the job site in compliance with all Local, State, and Federal regulations. Landfill site disposal trip tickets must be remitted to the Authority prior to payment.
• The Contractor shall submit product submittals for approval prior to use. • A pre-construction meeting shall be held with appropriate tenants and airpor t staff prior to work commencing. The Contractor shall provide a schedule prior to the pre-construction meeting. • The Contractor shall hold bids for at least 60 days.
• The Contractor shall provide a standard one- year Public Works warranty. No additional warranty requested.

This project shall be scheduled to be completed within 60 calendar days.

EXHIBIT A
16/Construction Agreement/Vertex Civil, LLC/Project CC25-043 17 Construction Agreement/Vertex Civil, LLC/Project CC25-043

EXHIBIT B
B

ID PROPOSAL FORMS
S
ee Attachment

EXHBIT B
18/Construction Agreement/Vertex Civil, LLC/Project CC25-043

ATTACHMENT C

VERTEX CIVIL LLC

BID PROPOSAL PRICE

SCHEDULE

ATTACHMENT D

MUNICIPAL CODE 2.28.200

ATTACHMENT E

MUNICIPAL CODE 2.28.040

Item Number: 18
City Council / Board of Directors
Written Communications
Meeting of: January 21, 2025
Submitted By:

Alex Jauregui, City Planner

Subject:

Caltrans Sustainable Transportation Planning Grant Program Recommendation:

That the Honorable City Council:
(1) Authorize the City Manager or his designee to finalize and complete the Caltrans Sustainable Transportation Planning Grant Program application as presented, including the adjustment, modification and/or updating of application materials necessary to prepare a competitive application; and
(2) Authorize the City Manager or his designee to apply for and execute all documents deemed necessary to apply for funding provided by the Caltrans Sustainable Transportation Planning Grant Program.

Fiscal Impact:

There is no fiscal impact associated with this item. If the City is successful in securing grant funding, staff will bring a subsequent item before the City Council to formally request acceptance of the award and appropriate grant funds accordingly.

The Caltrans Sustainable Transportation Planning Grant Program also requires an 11.47 percent local match of the total project cost where the total project cost is comprised of the grant amount plus required local match amount. As the City is requesting $700,000.00, this would require a local match of $90,692.00 from cash or in-kind contributions if the City is successful in securing the full amount of funding requested.

This local match requirement can be fulfilled via City staff wages, which is the proposed source of matching funds. Additionally, environmental reviews associated with projects are ineligible expenses for this grant; however, staff notes that over $33,000 is available in collected General Plan Surcharge fees that can be used to complete any necessary environmental review related to a General Plan update. If awarded, this project is expected to be initiated next fiscal year and related revenues and expenditures will be included in a proposed budget amendment for Fiscal Year 2025/2026, as necessary. 3 9
4 8
Strategic Plan Goal:

The subject grant opportunity aligns with Goals A and E of the 2023-2026 Strategic Plan as follows:
•Goal A (Financial Stability) – The grant will provide reimbursement for necessary updates to the Circulation and Resource Elements of the General Plan, which are required by recent changes to State law.
•Goal E (Invest in Infrastructure) – The grant provides a funding opportunity for local jurisdictions to support and implement the Southern California Association of Governments (SCAG) Regional Transportation Plan/Sustainable Communities Strategy (Connect SoCal), which emphasizes enhancing bikeway networks and improving the existing roadway system, as outlined in Goal E of the City’s Strategic Plan.

Background:

The Sustainable Transportation Planning Grant Program was created to support the California Department of Transportation’s (Caltrans) Mission: Provide a safe and reliable transportation network that serves all people and respects the environment.

The State-funded Sustainable Communities grants provide over $29 million intended to support and implement Regional Transportation Plan (RTP) Sustainable Communities Strategies, such as SCAG’s Connect SoCal, and to ultimately achieve the State’s greenhouse gas (GHG) reduction target of 40 and 80 percent below 1990 levels by 2030 and 2050, respectively. Additionally, the subject grants are intended to address the needs of under-resourced communities, and assist in achieving the Caltrans Mission and Grant Program Objectives of:
•Safety •Preservation •Innovation •Health
•Sustainability •Accessibility •Economy •Social Equity
Of the over $29 million dedicated to Sustainable Communities Grants, approximately $17 million is available to local and regional jurisdictions in amounts of up to $700,000 through a competitive grant process and funding provided on a reimbursement basis. The deadline to apply for the subject grant is January 22, 2025, and if awarded, Staff anticipates conducting grant activities for 18 months beginning in November 2025 and completing the project in the first half of 2027, prior to the grant’s requirement of completion by June 2028. All additional grant specifics are outlined in the Grant Application Guide (Attachment A) for reference as needed.

Discussion:

As proposed and included in the draft grant application (Attachment B), City staff is seeking authorization to seek funding of $700,000 through Caltrans Sustainable Transportation Planning Grant Program in order to fund updates to the Circulation and Resource elements of the General Plan. These elements of the General Plan have not had a major update since 2008, and with the recent adoption of an updated Housing 3 9
4 8
Element, Land Use Element, and Safety Element as well as a new Environmental Justice Element, the subject grant opportunity will allow the City to complete a revision to the last remaining elements of the General Plan that require reexamination and updating.

Additionally, various State Assembly and Senate Bills (Attachment C) have recently been adopted that amend State law and mandate revision to the subject Circulation and Resource elements of the General Plan. A synopsis of the applicable State laws is provided as follows.

Circulation Element Related
•Senate Bill (SB) 932 – Upon a substantive revision of the Circulation Element after January 1, 2025, requires that cities incorporate the principles of the Federal Highway Administration’s Safe System Approach and that they develop bicycle plans, pedestrian plans, and traffic calming plans based on the policies and goals in the Circulation Element while setting goals for initiation and completion of all actions identified in the plan within 25 years of the date of adoption of the modified Circulation Element. Due to the requirements of Assembly Bill 98, these bills will be required to be address simultaneously.
•Assembly Bill (AB) 98 – Requires by January 1, 2028, that cities update their Circulation Element and identify and establish specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and concentrations of sensitive receptors. Since this bill requires an update to the Circulation Element, it will constitute a substantive revision and simultaneously require an update to address the noted requirements of SB 932.

Resources Element Related
•Senate Bill (SB) 1425 – Requires by January 1, 2026, that cities review and update the open space element of their General Plan in order to include plans and an action program that address issues such as, equitable access to open space within the City, climate resilience and other co-benefits of open space, and opportunities to enhance/expand an integrated network of open space. Although the City’s required Open Space Element of the General Plan is included in the Resource Element, this element nonetheless requires revision to comply with SB 1425.

Included in the draft grant application (Attachment B) is a project narrative that details specific project components and addresses community and project indicators that will assist Caltrans in scoring the application. As previously noted, staff is seeking authorization to proceed with applying for this funding in order to complete the required updates to the Circulation and Resource Elements of the City’s General Plan, which would necessitate the procurement of a consultant to prepare the draft documents as well as a robust public outreach campaign to ensure all members of the community are heard and their input incorporated into a final product. Additionally, as noted in the “Fiscal Impact” section of this report, a local match requirement can be fulfilled by staff wages and any fee’s associated with the environmental review process can be funded with collected General Plan Surcharge fees that have been collected specifically to update and implement the various aspects of the City’s General Plan. 3 9
4 8
At this time, the attached draft grant application represents a portion of the entire grant application that details the overall intent of the request; however, other application items such as a completed scope of work with individual line items and a total cost schedule are incomplete at the time while City staff awaits a technical assistance meeting with Caltrans staff to complete these steps. As proposed, should the City Council authorize the City Manager to proceed with application for this funding source, they would also authorize the completion of the noted items in an effort to provide a complete and competitive application.

Attachments: A. Grant Application Guide
B. Draft Caltrans Sustainable Transportation Planning Grant C. State Assembly and Senate Bills

ATTACHMENT A
Grant Application Guide
Grant Application Deadline January 22, 2025
Submit Application via Smartsheet Form

CALIFORNIA DEPARTMENT OF TRANSPORTATION

DIVISION OF TRANSPORTATION PLANNING
Fiscal Year 2025-26

GRANT APPLICATION GUIDE
Sustainable Communities,
Strategic Partnerships and
Climate Adaptation Planning

SUSTAINABLE TRANSPORTATION

PLANNING GRANTS
ADA Notice: For individuals with sensory disabilities, this document is available in alternate formats. For information call (916) 654-6410 or TDD (916) 654-3880 or write Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.
i-ii
Updated October 2024

TABLE OF CONTENTS
TABLE OF CONTENTS ........................................................................................................... i-ii

1. GRANT PROGRAM OVERVIEW ....................................................................................... 1 Sustainable Transportation Planning Grant Summary Chart .................................................. 2 Grant Program Objectives and Considerations ...................................................................... 5

2. SUSTAINABLE COMMUNITIES COMPETITIVE AND TECHNICAL...................................... 9 Purpose and Specific Objectives .............................................................................................. 9 Example Project Types .............................................................................................................. 10 Eligible and Ineligible Activities and Expenses ....................................................................... 13 Tips for Successful Sustainable Communities Grant Applications ........................................ 14

3. SUSTAINABLE COMMUNITIES FORMULA ...................................................................... 19 Purpose and Specific Objectives ............................................................................................ 19 Guidance and Approval Process ........................................................................................... 20 Example Project Types .............................................................................................................. 20 Eligible and Ineligible Activities and Expenses ....................................................................... 21 Formula Grant Allocation Estimates ........................................................................................ 21

4. CLIMATE ADAPTATION PLANNING .............................................................................. 22 Purpose and Specific Objectives ............................................................................................ 22 Example Project Types .............................................................................................................. 24 Eligible and Ineligible Activities and Expenses ....................................................................... 27 Tips for a Successful Climate Adaptation Planning Grant Application .............................. 28

5. STRATEGIC PARTNERSHIPS ............................................................................................ 30 Purpose and Specific Objectives ............................................................................................ 30 Federal Planning Factors .......................................................................................................... 30 Complete Streets Local Match Waiver .................................................................................. 30 Example Project Types .............................................................................................................. 31 Eligible and Ineligible Activities and Expenses ....................................................................... 32 Tips for Successful Strategic Partnerships Grant Applications .............................................. 34

6. GRANT PROJECT ADMINISTRATIVE REQUIREMENTS .................................................... 35 Coordination with Caltrans ...................................................................................................... 35 Third Party Contracts ................................................................................................................ 35 Quarterly Reporting .................................................................................................................. 36 Integrated Climate Adaptation and Resiliency Program (ICARP) Case Studies ............... 36

i-ii
Invoicing and Financial Requirements ................................................................................... 37 Non-Discrimination Requirements ........................................................................................... 42 Final Product .............................................................................................................................. 42 Project Close-Out Survey ......................................................................................................... 43 California Public Records Act .................................................................................................. 43

7. APPLICATION SUBMITTAL PROCESS ............................................................................. 44 Applicant Eligibility .................................................................................................................... 44 Early Coordination and Technical Assistance for Primary Applicants ................................. 44

7.3 Application Submittal Instructions ........................................................................................... 45

7.4 Application Supplemental Documentation .......................................................................... 46

8. APPLICATION REVIEW PROCESS .................................................................................. 47 Two-Tiered Application Review Process ................................................................................. 47 Application Evaluation/Scoring Process ................................................................................ 47 Past Performance Award Considerations .............................................................................. 47

9. APPLICATION AWARD PROCESS .................................................................................. 49 Award and Non-Award ............................................................................................................ 49 Contracting with Caltrans ........................................................................................................ 49 APPENDIX A. Guidance, Tools, and Resources for Preparing a Grant Application ..... 53 Grant Program Considerations ................................................................................................................ 53 Resources to Advance Grant Specific Objectives ................................................................................ 57 APPENDIX B. Sample Application Package .................................................................... 79 APPENDIX C. Caltrans/Regional Agency Boundaries Map ......................................... 108 APPENDIX D. Caltrans District Contact List .................................................................... 109

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 1

1. GRANT PROGRAM OVERVIEW
The Sustainable Transportation Planning Grant Program was created to support the California Department of Transportation’s (Caltrans) Mission: Provide a safe and reliable transportation network that serves all people and respects the environment.

The California Legislature passed, and Governor Edmund G. Brown Jr. signed into law, Senate Bill 1 (SB 1, Beall, Chapter 5, Statutes of 2017) – The Road Repair and Accountability Act of 2017, a transportation funding bill that provides a reliable fund source to maintain and integrate the State’s multimodal transportation system. In addition to the $9.5 million in traditional State and federal grants, approximately $25 million in SB 1 funds for Sustainable Communities Grants is available for each grant cycle.

The State-funded Sustainable Communities grants ($29.5 million) are intended to support and implement Regional Transportation Plan (RTP) Sustainable Communities Strategies/Alternative Planning Strategies (SCS/APS) (where applicable) and to ultimately achieve the State’s
greenhouse gas (GHG) reduction target of 40 and 80 percent below 1990 levels by 2030 and 2050, respectively.

The State-funded Climate Adaptation Planning grants ($3 million) enacted with Senate Bill 198 (Committee on Budget and Fiscal Review, Chapter 71, Statutes of 2022), will support local and regional identification of transportation-related climate vulnerabilities through the development of climate adaptation plans, as well as project-level adaptation planning to identify adaptation projects and strategies for transportation infrastructure.

The federal-funded Strategic Partnerships and Strategic Partnership Transit grants ($4.5 million) support Federal Planning Factors and address State highway/transit issues of regional, interregional, and/or statewide significance, in partnership with Caltrans.

Eligible planning projects must have a transportation nexus per Article XIX Sections 2 and 3 of the California Constitution. Therefore,
successful planning projects are expected to directly benefit the multimodal transportation system. These grants will also improve public health, social equity, environmental justice, the environment, and provide other important community benefits. The period of grant fund availability spans over three FYs and approximately 32 months for grant project activities after the grant agreement is executed and Caltrans issues a Notice to Proceed.

Refer to Chapter 9.2 for details regarding the anticipated grant project start and expiration dates.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 2
Sustainable Transportation Planning Grant Summary Chart Grant Fund Source Purpose Who May Apply Local Match
Sustainable Communities Competitive
Budget
RMRA and SHA
State funds
Approx. $17 million
Approx. $3 million set-aside
for technical projects
Up to $2 million set-aside for
Native American Tribal
Governments
Goal: 50% of grants should
benefit Under-Resourced
Communities***
Grant Minimum
$50,000 for Under-
Resourced Communities,
including Native American
Tribal Governments and
rural communities;
$100,000 for all others
Grant Maximum
$700,000
Funds local and
regional multimodal
transportation and
land use planning
projects that further
the region’s RTP
SCS/APS (where
applicable),
contribute to the
State’s GHG
reduction targets,
address the needs of
under-resourced
communities, and
assist in achieving the
Caltrans Mission and
Grant Program
Objectives (See
Chapter 1.2).

The following are eligible to apply as a
primary applicant:
· MPOs with sub-applicants
· RTPAs
· Transit Agencies
· Cities and Counties with compliant
Housing Elements and completed
Annual Progress Reports
· Native American Tribal Governments
· Other Public Transportation Planning
Entities
The following are eligible to apply as a
sub-applicant:
· MPOs/RTPAs
· Transit Agencies
· Universities and Community Colleges
· Native American Tribal Governments
· Cities and Counties with compliant
Housing Elements and completed
Annual Progress Reports
· Community-Based Organizations
· Non-Profit Organizations (501.C.3)
· Other Public Entities**

11.47%
minimum* (in
cash or an in-
kind
contribution);
not required for
Native
American Tribal
Governments
Sustainable Communities Formula
Budget
RMRA
State funds
$12.5 million
Funds local and
regional multimodal
transportation and
land use planning
projects that further
the region’s RTP
SCS/APS (where
applicable),
contribute to the
State’s GHG
reduction targets,
and assist in
achieving the
Caltrans Mission and
Grant Program
Objectives (See
Chapter 1.2).

The following are eligible to apply as a
primary applicant:
· MPOs

11.47%
minimum* (in
cash or an in-
kind
contribution)
* For local match requirements, refer to Chapter 6.5 of this Guide. ** Public entities include state agencies, the Regents of the University of California, district, public authority, public agency, and any other political subdivision or public corporation in the State (Government Code Section 811.2). *** For purposes of this grant program, under-resourced communities are the most vulnerable places that are facing disproportionate rates of economic, environmental, and health burdens, and are defined according to the tools in Appendix A.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 3
Grant Fund Source Purpose Who May Apply Local Match
Climate Adaptation Planning
Budget
State funds
Cycle 3: $3.7 million
Up to $1 million set-aside
for Native American
Tribal Governments
Goal: 50% of grants
should benefit Under-
Resourced
Communities***
Grant minimum
$100,000
Grant maximum
$1 million (single
organization); above
$1.5 million to be
considered for
partnership applications
Funds local and
regional
identification of
transportation-
related climate
vulnerabilities
through the
development of
climate adaptation
plans, as well as
project-level climate
adaptation planning
to identify
adaptation projects
and strategies for
transportation
infrastructure.

The following are eligible to apply as a
primary applicant:
· MPOs
· RTPAs
· Transit Agencies
· Cities and Counties
· Native American Tribal Governments
· A joint exercise of powers authority
established pursuant to Chapter 5 of
Division 7 of Title 1, with the consent of
a transportation planning agency or a
county transportation commission for
the jurisdiction in which the
transportation project will be
developed.
· A local transportation authority
created or designated pursuant to
Division 12.5 or Division 19 of the Public
Utilities Code.

The following are eligible to apply as a
sub-applicant:
· MPOs/RTPAs
· Transit Agencies
· Universities and Community Colleges
· Native American Tribal Governments
· Cities and Counties
· Community-Based Organizations
· Non-Profit Organizations (501.C.3)
· Other Public Entities**

11.47%
minimum* (in
cash or an in-
kind
contribution);
not required for
Native
American Tribal
Governments
* For local match requirements, refer to Chapter 6.5 of this Guide. ** Public entities include state agencies, the Regents of the University of California, district, public authority, public agency, and any other political subdivision or public corporation in the State (Government Code Section 811.2). *** For purposes of this grant program, under-resourced communities are the most vulnerable places that are facing disproportionate rates of economic, environmental, and health burdens, and are defined according to the tools in Appendix A.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 4
Grant Fund Source Purpose Who May Apply Local Match
Strategic Partnerships
Budget
FHWA
SPR, Part I
Federal funds
$1.5 million
Grant Minimum
$100,000
Grant Maximum
$500,000
Funds transportation
planning studies in
partnership with
Caltrans that
address the regional,
interregional, and
statewide needs of
the State Highway
System, and assist in
achieving the
Caltrans Mission and
Grant Program
Objectives (See
Chapter 1.2).

The following are eligible to apply as a
primary applicant:
· MPOs
· RTPAs
The following are eligible to apply as a
sub-applicant:
· MPOs/RTPAs
· Transit Agencies
· Universities and Community Colleges
· Native American Tribal Governments
· Cities and Counties
· Community-Based Organizations
· Non-Profit Organizations (501.C.3)
· Other Public Entities**
20% minimum*
(in non-federal
funds or an in-
kind
contribution)
Complete
Streets related
application
can request a
local match
waiver. Details
in Section 5.3.

Strategic Partnerships – Transit
Budget
FTA Section 5304
Federal funds
$3 million
Grant Minimum
$75,000 for RTPAs and
transit agencies;
$100,000 for MPOs
Grant Maximum
$500,000
Funds multimodal
planning studies,
with a focus on
transit, in partnership
with Caltrans, of
regional,
interregional and
statewide
significance, and
assist in achieving
the Caltrans Mission
and Grant Program
Objectives (See
Chapter 1.2)
The following are eligible to apply as a
primary applicant:
· MPOs
· RTPAs
· Transit Agencies
The following are eligible to apply as a
sub-applicant:
· MPOs/RTPAs
· Transit Agencies
· Universities and Community Colleges
· Native American Tribal Governments
· Cities and Counties
· Community-Based Organizations
· Non-Profit Organizations (501.C.3)
· Other Public Entities**

11.47%
minimum* (in
non-federal
funds or an in-
kind
contribution)
Complete
Streets related
application
can request a
local match
waiver. Details
in Section 5.3.
* For local match requirements, refer to Chapter 6.5 of this Guide. ** Public entities include state agencies, the Regents of the University of California, district, public authority, public agency, and any other political subdivision or public corporation in the State (Government Code Section 811.2).

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 5
Grant Program Objectives and Considerations
Successful grant applications address and articulate how the project relates to the Caltrans Mission, Grant Program Objectives, and Grant Program Considerations. The Grant Specific Objectives identified in Chapters 2.1, 3.1, 4.1 and 5.1 indicate the specific purpose of the Sustainable Communities, Climate Adaptation, and Strategic Partnership transportation planning grants, respectively, and must also be considered when preparing an application.

Grant Program Objectives
The following Grant Program Objectives are focused on achieving the Caltrans Mission and are intended to inform application development, including:

Objective Description
Safety
Prioritize the elimination of fatal and serious injury crashes and enhance safe use of our roadways through the Safe System approach to realize a vision of zero road fatalities and serious injuries on all California roads by 2050.

Sustainability
Promote reliable and efficient mobility for people, goods, and services, while meeting the State’s GHG emission reduction goals, preserving the State’s natural and working lands, and preserving the unique character and livability of California’s communities.

Preservation
Preserve the transportation system through protecting and/or enhancing the environment, promoting energy conservation, improving the quality of life, and/or promoting consistency between transportation improvements and State and local planning growth and economic development patterns.

Accessibility Increase the accessibility of the system and mobility of people, inclusive of older adults, those with disabilities, and freight.

Innovation
Promote the use of technology and innovative designs to improve the performance and social equity of our transportation system and provide sustainable transportation options.

Economy
Support the economic vitality of the area (i.e., enables global competitiveness, enables increased productivity, improves efficiency, increases economic equity by enabling robust economic opportunities for individuals with barriers to employment and for Disadvantaged Business Enterprise (DBE), etc.).

Health
Decrease exposure to local pollution sources, reduce serious injuries and fatalities on the transportation system, and promote physical activity across the lifespan, inclusive of those with disabilities, especially through transportation means.

Social Equity
Promote transportation solutions that focus on and prioritize the needs of under- resourced communities most affected by poverty, air pollution and climate change, and promote solutions that integrate community values with transportation safety and performance while encouraging meaningful public involvement in the transportation decision making process.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 6
Grant Program Considerations
The Grant Program supports related State and federal mandated initiatives. The Plans and Programs listed below should be considered in grant application development. Definitions and links to these resources can be found in Appendix A.

Caltrans Strategic Plan
The Strategic Plan is a declaration of the Caltrans vision and mission, core values, strategic imperatives, and six goals to deliver a world-class transportation system for one of the nation’s most populous, innovative, and diverse states:

Ø Safety first
Ø Cultivate excellence
Ø Enhance and connect the multimodal transportation network Ø Strengthen stewardship and drive efficiency
Ø Lead climate action
Ø Advance equity and livability in all communities
This plan guides and informs the development of the Sustainable Transportation Planning Grant Program. Competitive applications will articulate how they will assist in achieving the Caltrans vision and mission, the six strategic goals above.

California Transportation Plan 2050
The California Transportation Plan (CTP) 2050 is a long-range transportation plan, updated every five years pursuant to State and federal law, and is statutorily required to be fiscally unconstrained:

Ø Defines a vision for the future transportation system, establishes new statewide priorities, and guides Caltrans and partner agencies in implementing its recommendations
Ø Identifies strategies and policies that are required to make transparent and transformational transportation decisions Ø Recognizes the unique transportation needs and interests of urban, suburban, rural, and tribal communities
Ø Guides transportation decision makers at all levels of government, while emphasizing the importance of shared
responsibility in meeting our transportation needs
The CTP does not contain projects, but policies and strategies required to close the gap between what the RTPs aim to achieve and how much more is required to meet 2050 goals. Competitive applications will discuss how proposed projects will assist in achieving the CTP 2050 vision, goals, recommendations, and the modal plans that support it.

Modal Plans that Support the California Transportation Plan The CTP is the umbrella plan that informs and pulls together the State’s long-range modal plans listed below, to envision the future system:

Ø Interregional Transportation Strategic Plan
Ø California Freight Mobility Plan

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 7
Ø California State Rail Plan
Ø California State Bicycle and Pedestrian Plan
Ø Statewide Transit Strategic Plan
Ø California Aviation System Plan
Strategic Highway Safety Plan
The Strategic Highway Safety Plan (SHSP) is a statewide, coordinated traffic safety plan that provides a comprehensive framework for reducing roadway fatalities and serious injuries on California’s public roads. This document represents the third update of California’s initial 2005 SHSP and uses the latest crash data and insights from safety partners across the state to inform the SHSP’s development. Working in conjunction with other statewide safety plans such as the Highway Safety Improvement Program, the Highway Safety Plan, and the Commercial Vehicle Safety Plan, this SHSP provides guidance that will influence the development of goals, strategies, and
performance measures for stakeholders working to improve traffic safety throughout California.

The latest California SHSP effort focuses on strategies with the greatest potential to reduce fatalities, serious injuries, and overall crashes. To ensure that decision-making is consistent, the SHSP is anchored by a clear Vision, Mission, and Goal. The vision represents what the SHSP aims to accomplish, while the mission is the means of getting there. Fulfilling these statements affords the state, under guidance of the SHSP, the best opportunity to reach its goal: Zero Fatalities and Serious Injuries by 2050.

Title VI and Environmental Justice
Title VI of the U.S. Civil Rights Act prohibits discrimination on the basis of race, color, or national origin in programs or activities receiving federal financial assistance. A similar prohibition applies to recipients of state funds under California Government Code section 11135, which prohibits discrimination on the basis of race, color or national origin, as well as ethnic group identification, religion, age, sex, sexual orientation, genetic information, or disability.

Caltrans integrates Title VI as well as environmental justice in all activities. In the past, low-income and minority communities disproportionately bore many of the negative impacts of transportation projects, which they continue to feel the consequences from today. It is the goal of environmental
justice to ensure that when transportation decisions are made, low-income and minority communities have a full opportunity to participate in the decision-making process, and they receive an equitable distribution of benefits and not a disproportionate share of burdens, which contribute to poor health outcomes.

More information about non-discrimination requirements can be found in Chapter 6.6.

Director’s Policy DP 28-R2 (Title VI Implementation Plan: Federal Fiscal Year 2024, Appendix B):
https://dot.ca.gov/-/media/dot-media/programs/civil-rights/documents/title- vi/2024caltranstitleviimplementationplan9823a11y.pdf

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 8
Climate Action Plan for Transportation Infrastructure
The Climate Action Plan for Transportation Infrastructure (CAPTI) details how the State recommends shifting and investing billions of discretionary transportation dollars annually to aggressively combat and adapt to climate change while supporting public health, safety and equity. CAPTI builds on executive orders signed by Governor Gavin Newsom in 2019 and 2020 targeted at reducing GHG emissions in transportation, which account for more than 40 percent of all emissions, to reach the State's ambitious climate goals. Competitive grant applications will discuss how proposed projects will assist in implementing the CAPTI Investment Framework, Guiding Principles, and align with the Implementation Strategies and Key Actions.

Through CAPTI Caltrans is committed to intentional engagement and partnership with tribal governments and community -based organizations representing historically marginalized voices.

California Climate Adaptation Strategy
The California Climate Adaptation Strategy, mandated by Assembly Bill 1482 (Gordon, 2015), links the State’s existing and planned climate adaptation efforts, showing how they fit together to achieve California’s six climate resilience priorities. The Strategy is organized around outcome- based priorities, enabling a coordinated, integrated approach to building climate resilience. The Strategy shows how the State’s efforts fit together to deliver on six priorities for climate resilience action in California: Strengthen Protections for Climate Vulnerable Communities; Bolster Public Health and Safety to Protect Against Increasing Climate Risks; Make Decisions Based on the Best Available Climate Science; Build a Climate Resilient Economy; Accelerate Nature-Based Climate Solutions and Strengthen Climate Resilience of Natural Systems; Partner and Collaborate to Leverage Resources. The California Climate Adaptation Strategy also deepens the integration of California Native American tribal priorities into California climate policies and programs and support tribal partnership and collaboration through funding tribal climate projects. Competitive grant
applications will discuss how proposed projects consider climate resilience and align with the California Climate Adaptation Strategy.

Master Plan for Aging
The Master Plan for Aging is a blueprint for aging across the lifespan, not simply a plan for today’s older adults. California’s over-60 population is projected to diversify and grown faster than any other age group. In response, the Master Plan calls on all California communities to build a California for All Ages: for older Californians currently living through the many different stages of the second half of life; for younger generations who can expect to live longer lives than their elders; for communities of all ages –
family, friends, neighbors, coworkers, and caregivers – surrounding older adults. Competitive grant applications will discuss specific connections and help achieve the Master Plan’s five goals and twenty- three strategies to build a California for All Ages by 2030.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 9

2. SUSTAINABLE COMMUNITIES COMPETITIVE AND

TECHNICAL
Approximately $12 million in State Road Maintenance and Rehabilitation Account (RMRA) funds and $5 million in State Highway Account (SHA) funds, or a combined total of $17 million will be distributed through a competitive program to Metropolitan Planning Organizations (MPOs) with a sub-applicant(s), Regional Transportation Planning Agencies (RTPAs), cities and counties, transit agencies, and Native
American Tribal Governments. MPOs must have a sub-applicant in order to be eligible and apply to the Sustainable Communities Competitive and Technical grants.

Approximately $3 million will be set-aside for a technical project sub-category. In accordance with the recent release of the guidance documents for the implementation of Senate Bill 743 (SB 743, Chapter 386, Statutes of 2013), there is a current need for improved tools to measure VMT and induced travel and to develop and implement VMT mitigation programs.

Up to $2 million will be set-aside for Native American Tribal Governments.

Funding distribution for the competitive program will depend on the quality and number of applications.

Purpose and Specific Objectives
The purpose of the Sustainable Communities grants is to fund local and regional multimodal transportation and land use planning projects that further the region’s RTP SCS/APS (where applicable), contribute to the
State’s GHG reduction targets, and assist in achieving the Caltrans Mission and Grant Program Objectives, which must be considered when preparing the grant application.

A minimum threshold
of 50 percent of Sustainable Communities Competitive and Technical Grants has been identified for projects that benefit under-resourced communities, which includes Native American Tribal Governments and rural communities (for transportation planning purposes, rural is defined as all areas of the state that are not included in urbanized areas of 50,000 in population or greater; refer to Appendix C, Caltrans/Regional Agency Boundaries Map, which indicates rural areas). For purposes of the grant program, acceptable under-resourced communities definitions are described in Appendix A and include:
· Rural communities of 50,000 or less and outside of urbanized areas · Native American Tribal Governments
· Regionally/locally defined under-resourced communities · At or below 80% Assembly Bill 1550 (Gomez, Statutes of 2016) · At or above 75% California Department of Education, Free or Reduced Priced Meals Data · At or above 75% CalEnviroScreen Version 4.0
· At or below 25% California Healthy Places Index (HPI) Sustainable Communities Competitive and Technical applicants must demonstrate how the project
fits every aspect of the following Specific Objectives, as appropriate for the applicant and project type:
· Encourage local and regional multimodal transportation and land use planning that furthers the region’s RTP SCS/APS (where applicable). For applicants not in an MPO region, address how the project encourages local and regional multimodal transportation and land use planning that advances sustainability

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 10
· Contribute to the State’s GHG reduction targets and other State goals, including but not limited to, the goals and best practices cited in the 2024 RTP Guidelines · Address the needs of under-resourced communities through robust public engagement · Assist in achieving the Caltrans Mission and Grant Program Objectives (See Chapter 1.2).

Sustainable Communities Technical project types do not require extensive public engagement due to their technical nature, but they will explain and demonstrate:
· How the public will be involved at later stages of the planning process · How they will collaborate with and involve appropriate stakeholders with technical expertise to review and validate quantification assumptions and methods · How stakeholders will be involved in the application and Scope of Work Technical project applications are scored under the same criteria as all other project types, but they are grouped with other technical projects, and they compete at the same level. Refer to Chapter 2.2 for Example Technical Project Types. Applicants should contact their Caltrans District listed in Appendix D to help decide which grant category is the best fit for their project.

Below is a list of Appendix A Guidance, Tools, and Resources to assist applicants in preparing a competitive grant application that is consistent with the Grant Program Objectives, Grant Program Considerations, and Specific Objectives.
· Advance Transportation Related GHG Reduction Project Types/Strategies · Addressing the Needs of Under-Resourced Communities
· Public Health Resources
· Active Community Engagement
· Integrated Housing, Land Use and Transportation Planning · Promote the Region’s RTP SCS/APS (where applicable) and State Planning Priorities, and Climate Adaptation Goals
· Climate-Ready Transportation

Example Project Types
The examples below are organized in the following grant project types: Active Transportation; Corridor and Freight; Social Equity; Integrated Housing, Land Use, and Transportation; Multimodal; Safety; Technical; and Transit.

Active Transportation
· Active transportation plans, including bicycle, pedestrian, and trail master plans · Plans for bike parking facilities
· Rural planning studies or plans that provide rural counties the ability to develop active transportation plans with a rural context-sensitive focus and allow for rural regions to contribute to the State’s GHG reduction targets
· Studies or plans that include a temporary built environment demonstration, e.g., tactical urbanism
Corridor and Freight
· Comprehensive Multimodal Corridor Plans
· Corridor enhancement studies
· Studies or plans related to zero emissions vehicle goods movement

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 11
· Freight/goods movement plans and studies
· Local or regional corridor plans
· Studies and plans that can help to quantify and highlight the value and importance of the rural State transportation system which connects large urban centers to rural open space, State and federal lands, and recreation and agriculture hubs. · Studies and plans to mitigate for impacts to the rural transportation system due to increased interregional tourism and visitor traffic
· Modeling improvements that address SB 743 implementation and induced travel (see Sustainable Communities – Technical grant-specific objectives in Chapter 2.1) · Complete Streets plans that consider last-mile freight · Curbside freight management plans
· Sustainable freight plans
· Agriculture goods movement plans
· Freight/supply chain resiliency studies
Social Equity
· Community Needs Assessments
· Health and transportation studies, including health equity transportation studies and other plans that incorporate health into transportation planning · Studies to improve access to social services and other community destinations for under- resourced communities such as grocery stores, schools, hospitals, transit stations, etc. · Studies, plans or planning methods that address environmental justice issues in a transportation related context
· Congestion pricing studies including plans that enhance social equity and avoid inequitable cost burdens
· Planning to remove or reduce barriers created by transportation infrastructure such as highways, overpasses and underpasses, that create disconnected communities · Studies or plans to ensure that infill and transit-oriented development benefits existing residents and businesses, low-income and under-resourced communities, and minimizes displacement
· Outreach to educate under-resourced communities on mode shifts to electric forms of transportation, as part of a plan or study as appropriate · Student internships for rural agencies and/or under-resourced communities · Native American Tribal Government transportation planning training and capacity building Integrated Housing, Land Use, and Transportation
· Studies, plans or planning methods that assist transportation agencies in creating sustainable communities and transit-oriented development
· SCS/APS development
· Studies that promote greater access between affordable housing and job centers · Station area planning
· Integration of transportation and environmental planning · First Mile/Last Mile project development planning
· An update to a general plan land use element, zoning code, or land use plan that increases development opportunities around key transportation corridors or nodes Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 12
· Creation of a Transit-Oriented Development overlay zone or other special zoning district around key transportation corridors or nodes
· Studies, plans, and policies that address land use conflicts with major transportation corridors such as major highways, ports, shipping and freight corridors, etc. that are near sensitive land uses such as homes, schools, parks, etc. or potentially impacted by climate change Multimodal
· Complete Streets plans or multimodal transportation plans · Long range transportation plans for tribal governments · Studies, plans or planning methods that advance a community’s effort to reduce single occupancy vehicle trips and transportation related GHG through strategies including, but not limited to, advancing mode shift, demand management, travel cost, operational efficiency, accessibility, and coordination with future employment and residential land use · Context-sensitive streetscapes or town center plans
· Studies that evaluate accessibility and connectivity of the multimodal transportation network · Shared mobility services planning studies
· Community outreach plans for park-and-ride lots
Safety
· Bike and pedestrian plans with a safety enhancement focus, including Vision Zero plans · Community to school studies or safe routes to school plans · Traffic calming and corridor safety enhancement plans Technical
· Transportation modeling studies or planning activities that address SB 743 implementation and induced travel, active transportation, emerging technology, public health, VMT and other impacts
· Planning for zero or near zero emission vehicles
· Electric vehicle charging infrastructure
network planning
· Transit planning for zero emission bus fleets
· Planning for autonomous vehicles
· Road or parking pricing studies
· Transportation Demand Management studies
· Commute trip reduction studies and plans
· Data collection/data sharing initiatives
· Integration of transit, new emerging technologies, and shared mobility services · Educational outreach as part of a plan or study as appropriate, e.g., for mode shifts to electric forms of transportation
Transit
· Identification of policies, strategies, and programs to preserve transit facilities and optimize transit infrastructure
· Transit planning studies related to accessible transit, paratransit, mobility management, etc. · Studies, plans, or outreach for school public transit, school pool ridesharing · Strategies to increase transit ridership
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 13
· Studies or plans that evaluate commuter rail or multimodal connectivity · Studies or plans that evaluate first and last mile transit connectivity

Eligible and Ineligible Activities and Expenses
Eligible Activities and Expenses
Eligible activities must have a transportation nexus per the California Constitution, Article XIX Section 2 and 3. Applicants need to consult with Caltrans district staff for more information on whether costs are eligible for funding.

Some examples of eligible costs include:
· Data gathering and analysis
· Report writing and the development of associated graphics · Planning consultant procurement
· Advertising for consultant procurement
· Advertising for public workshops, e.g., flyers, paid media ads · Travel expenses (See Chapter 6.5 for details)
· Up to 30 percent design or conceptual drawings
· Equipment (as defined in 2 CFR Part 200.33)1 purchases must remain under $5,000 or depreciation will need to be taken in to account when the grant project is completed since equipment could have future uses. 2 CFR Part 200.4362 provides the criteria for depreciation. · Community surveys, meetings, public workshop room rental, charrettes, focus groups · Virtual outreach activities and on-line meetings
· Bilingual services for interpreting and/or translation services for meetings · Community/stakeholder advisory groups
· Light snacks and refreshments for public workshops (no full meals), subject to Caltrans approval
o Requests to enhance public participation beyond the currently eligible costs for light refreshments will need justification regarding the cost benefit of the anticipated increase in public participation and must be submitted to Caltrans, and FHWA, when applicable, for consideration and approval, on a case-by-case basis. · Project administration (up to 5 percent of the grant is allowed, i.e., quarterly reports, invoicing, and kick-off meeting with Caltrans)
Ineligible Activities and Expenses
Some activities, tasks, project components, etc. are not eligible under these grant programs. If an application has any of the following elements, it will be disqualified.

Ineligible activities and expenses include:
1 Electronic Code of Federal Regulations, 2 Code of Federal Regulations, Part 200.33, 2020, https://www.ecfr.gov/on/2017-01-03/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group- ECFR2a6a0087862fd2c/section-200.33
2 Govinfo, 2 Code of Federal Regulations, Part 200.436, 20, https://www.govinfo.gov/app/details/CFR-2022-title2-vol1/CFR-2022-title2-vol1-sec200-436

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 14
· Environmental studies, plans, or documents normally required for project development under the National Environmental Policy Act or the California Environmental Quality Act · Engineering plans and design specification work
· Project Initiation Documents
· Program or project implementation
· Repurposing unspent grant funds (not applicable to Sustainable Communities Formula) · Application development to pursue construction funds/project implementation · RTPs or updates to the RTP, excluding SCS/APS development · Construction projects, capital costs, such as the building of a facility, or maintenance · Office furniture purchases, or other capital expenditures · Decorations, e.g., for public workshop events
· Acquisition of vehicles or shuttle programs
· Organizational membership fees
· Incentives for public participation
· Charges passed on to sub-recipient for oversight of awarded grant funds · Other items unrelated to the project

Tips for Successful Sustainable Communities Grant Applications Criteria for Successful Sustainable Communities Grant Applications Some guidance is provided below however, it is not intended to be all inclusive. · Integrate Grant Program Considerations (See Chapter 1.2) · Advance transportation related GHG emission reduction project types/strategies (i.e., mode shift, demand management, travel cost, operational efficiency, accessibility, and coordination with future employment and residential land use, etc.) · Identify and address deficiencies in the multimodal transportation system, including the needs of environmental justice and under -resourced communities, including Native American Triba l Governments and rural communities
· Encourage stakeholder collaboration
· Involve active community engagement for under-resourced communities and Native American Tribal Governments by utilizing advocacy groups, community -based organizations, and tribal organizations
· Coordinate transportation, housing, and land use planning · Result in funded and programmed multimodal transportation system improvements General Tips
· Some sections of the grant application may seem redundant when discussing under- resourced community engagement, overall public engagement, and stakeholder involvement. Although the general public and under -resourced communities are stakeholders for any project, for application purposes, the strategy, and methods for engaging th ese groups will be different, as described below. o Overall public engagement will describe the general strategy to engage the public at large.
o Under -resourced communities’ engagement will explain how the project will go above and beyond business as usual or what is statutorily required to address the

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 15
specific needs of under -resourced communities and use unique methods to involve these groups in the decision -making process. Refer to Appendix A, Active Community Engagement , which includes case studies for examples of equitable community engagement.
o Stakeholder engagement will explain how partner agencies, businesses, and/or non- profit community -based organizations will be involved throughout the project. · Consult with your district representative for technical assistance before the application deadline.
· Use the Samples and Checklists provided for the Application, Scope of Work, and Cost and Schedule.
· Include Caltrans as an active partner in the study. · Provide tailored letters of support and project area photographs to enhance the application. If applicants/supporters do not have the time/resources to provide tailored letters of support, a petition signed by supporters in a simple table format that lists the supporters and specifically how supporters will benefit the proposed project will suffice.

Project Description
Concisely describe
the project. Explain “What parties are involved, the proposed major milestones, and why the project is necessary.”
Project Justification
· Clearly define and explain the transportation problem or deficiency that the project will attempt to address and how the project will address the problem. Why is it critical to address the problem now? Make the case for a critical need that the project will address and support it with verifiable data, if available. · Explain how the project affects under -resourced communities. The tools in Appendix A are intended to help applicants define an under -resourced community in the project area. Please cite data sources, the tools used, and include a comparison to the statewide thresholds that are es tablished in each tool. · If the applicant is a Native American Tribal Government or a rural area (outside of the urbanized areas with 50,000 in population or greater) of the State, describe population characteristics such as demographics, location, and size .

Grant Specific Objectives
Demonstrate how the project fits every aspect of the Grant Specific Objective, as appropriate for the applicant and project type. Some guidance is provided below; however, it is not intended to be all inclusive. Applications should reference Appendix A for Resources to Advance Sustainable Communities Grant Specific Objectives.

Successful applications should include:

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 16
Planning for Housing, Housing Element Compliance, and Prohousing Designation o To avoid a deduction of 5 points, applicants must demonstrate how they integrate housing planning into their policies, programs, and project, or commit to coordinate housing and transportation in future policies and programs throughout the application (e.g., narrative and
scope of work). See Chapter 2.2 for a list of example projects that coordinate housing, land use, and transportation.
o To be eligible for a grant award, city and county primary/sub-grant applicants are required to submit:

1. A housing element adopted by the local
government to the Department of Housing and
Community Development (HCD), and HCD must
find the adopted housing element in substantial
compliance with state housing element law
pursuant to Government Code Section 65585.

2. Annual Progress Reports (APRs) to HCD for at
least the previous two years, 2022 and 2023.
o City or county primary/sub-applicants will receive a
high recommendation from HCD if they have a
Prohousing Designation, which can be earned by
adopting local policies that facilitate the planning,
approval, and construction of housing. The HCD
Prohousing Designation Program provides incentives
to cities and counties in the form of additional points or other preference in the scoring of competitive
housing, community development, and infrastructure
programs. For HCD Prohousing Designation Program
information and how to develop a competitive
application, refer
to Appendix A, Integrated Housing,
Land Use, and Transportation Planning.

Note: Charter cities are not exempt from this specific
program requirement and must submit an Annual Progress
Report for the calendar years mentioned above.

Community Engagement
· Refer to Appendix A, Active Community Engagement, for Community Engagement Best Practices.

IMPORTANT TIPS:
ü City and county
primary/sub-grant applicants
are required to submit:

1. A housing element
adopted by the local
government to HCD.

2. Annual Progress Reports
to HCD for at least the
previous two years, 2022
and 2023.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 17
· Evidence of additional public outreach measures that promote access to decision-making and program implementation for all segments of the community, including special needs populations, under-resourced communities, and a variety of socio-economic groups (e.g., households across the income and employment
spectrum, ethnically and racially diverse
households).
· The application narrative should outline specific
outreach strategies including in-person and virtual
options.

· Tailored letters of support with electronic signatures from community-based organizations or public
advocacy groups to demonstrate their support or
involvement in identifying the issues that the
proposed project is attempting to address.
· If applicants/supporters do not have the
time/resources to provide tailored letters of support,
a petition electronically signed by supporters in a
simple table format that indicates specifically how
supporters will benefit the proposed project will
suffice.

Integrated Housing, Land Use, and
Transportation Planning
· Application narrative and any relevant supporting
or illustrative data should describe how the
proposed project integrates and connects land use
and transportation, including how transportation
and land use agencies or jurisdictions are actively
collaborating on the project in all project phases.
· Competitive grant applications should demonstrate how the project furthers this coordinated and integrated approach to planning. For example:
o Demonstrate how the project will support or align with the region’sRegional Early Action Planning (REAP)3 grant investments or other regional planning or implementation efforts.

REAP 2.0 seeks to accelerate infill housing development, reduce Vehicle Miles Traveled (VMT), increase housing supply at all affordability levels, affirmatively further fair housing, and facilitate the implementation of adopted regional and local plans to achieve these goals. Eligible uses include projects that invest in infrastructure to expand active transportation and fund and implement parking and transportation demand management programs or ordinances.
o Describe how the project aligns with State housing policies and goals by serving a community within ½ mile of a transit station or stop that has received a positive Prohousing Designation Program score, certified by HCD. o Explain how the project is located in an area that has earned a Prohousing Designation and positive scores for Prohousing Enhancement policies from HCD. Jurisdictions supporting integrated housing, land use, and transportation planning may have policies 3 REAP Website: Programs: Active | California Department of Housing and Community
Development
HELPFUL TIPS:

Tailored letters of support from
local agencies that not only
provide support for the project,
but also confirms that the
proposed project:
ü Helps to implement the
RTP SCS/APS and/or State
priorities
ü Involves a coordinated
approach to integrating
land use and
transportation in all phases
of project planning and
implementation.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 18
that include Prohousing Enhancement Factors, which represent a multi-faceted approach to planning objectives, are consistent with State priorities, go beyond state law, etc. Competitive applications may also identify a jurisdiction’s policies that promote housing development and reduce VMT. For information about the HCD Prohousing Designation Program and how applicants can develop a competitive application with Prohousing Enhancement Factors or VMT reducing policies, refer to Appendix A, Integrated Housing, Land Use, and Transportation Planning. HCD will highly recommend awards for City and county primary/sub-applicants that earn this designation.

Project Management
· Scope of Work: Refer to the Scope of Work Checklist in Appendix B. · Cost and Schedule : Refer to the Cost and Schedule Checklist in Appendix B.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 19

3. SUSTAINABLE COMMUNITIES FORMULA
$12.5 million will be distributed to the MPOs on a formula basis. The formula funds for the MPOs will reflect the same formula used to distribute Federal Highway Administration (FHWA) Metropolitan Planning PL funds.

The FHWA PL formula has three components:

1. A base allocation

2. A two-part population component which distributes funds by the proportion of the total population of each MPO based on California Department of Finance estimates each January

3. An Air Quality component based on the proportion of federal Congestion Mitigation Air Quality funds to total programmatic FHWA PL funds
Purpose and Specific Objectives
The purpose of the Sustainable
Communities
Formula is to fund
local and regional multimodal
transportation and land use
planning projects that further
the region’s RTP SCS/APS
(where
applicable), contribute
to the State’s GHG reduction
targets, and assist in achieving
the Caltrans Mission and Grant
Program Objectives (See
Chapter 1.2).

The specific objectives, eligibility requirements,
and performance considerations for the Sustainable
Communities Formula Grants awarded to MPOs are consistent with the Sustainable Communities Competitive Grants.

The intent of the Sustainable Communities Formula Grants is to carry out the objectives of the region’s
RTP SCS/APS (where applicable) and the RTP Guidelines Appendices E and G. In addition, MPOs are strongly encouraged to administer Sustainable Communities Formula funding in a transparent manner and maintain non-profit eligibility, consistent with the legislative intent of SB 1 - The Road Repair and Accountability Act of 2017.

The intent of the Sustainable
Communities Formula Grants is to
carry out the objectives of the
region’s RTP SCS/APS (where
applicable) and the RTP Guidelines
Appendices E & G.

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Guidance and Approval Process
Minimum Eligibility Criteria
MPOs should meet the following minimum eligibility
criteria to apply for Sustainable Communities Formula
grants:
· Of the Consolidated Planning Grant, FHWA PL
carryover is at or below 100 percent of the
annual FHWA PL allocation
· Have an RTP SCS/APS that meets the SB 375 GHG
reduction targets
· Meet civil rights and environmental justice
obligations, as summarized in Section 4.2 of the
RTP Guidelines
If an MPO does not meet the minimum eligibility
criteria listed above by April 30, 2025,
their allocation
will be redistributed to the remaining MPOs that are
eligible and apply for the Sustainable Communities
Formula Grants.

Annual Draft Overall Work Program (OWP) Development and Approval Process Sustainable Communities Formula Grants are part of the annual draft OWP development and approval process. The draft OWP process includes meaningful consultation with Caltrans district staff and the Headquarters Office of Regional and Community Planning (ORCP). MPOs are responsible for including a draft Work Element(s) for Sustainable Communities Formula Grant funds in the draft FY 2025-26 OWP and sending a list of activities using the provided template to Caltrans, no later than March 1, 2025. Draft OWPs are submitted to the district Regional Planning Liaison who will coordinate with ORCP. The draft Work Element(s) should include an explanation of how the project supports the Sustainable Communities Grant Specific Objectives and provide the same level of detail included in the grant application
Scope of Work and Cost and Schedule for the
Sustainable Communities Competitive Grants. The Work Element name and number must remain unchanged until the project(s) is completed. If Work Elements do not provide enough detail, MPOs will need to submit the competitive grant application Scope of Work and Cost and Schedule.

More information and detailed requirements are outlined in the SB 1 Guidance for OWPs and Requests for Reimbursements, available upon request.

Example Project Types
MPOs have flexibility for how the Formula Grant allocation is administered. For example, MPOs may use these funds for a regional competitive grant program, integrated land use and transportation planning activities related to developing their SCS/APS, carrying out the best practices cited in the RTP Guidelines, or a combination thereof. If an MPO uses Formula Grant funds to administer a regional grant program, the MPO must submit their grant program criteria and list of eligible applicants and sub-applicants to the Caltrans district and ORCP. This step is to ensure the MPO’s grant program aligns with the Caltrans Sustainable Communities Competitive Grants, including city and county housing element compliance. MPOs will also submit a list of awarded grants to the Caltrans district and ORCP. MPOs should coordinate the submittal of this information with the Caltrans district and ORCP to avoid delays for releasing the call-for-projects and grant awards. For additional example project types, refer to Chapter 2.2.

IMPORTANT NOTE:
ü If an MPO does not meet
the minimum eligibility
criteria, their allocation will
be redistributed to the
remaining MPOs that are
eligible and apply for the
Sustainable Communities
Formula Grants.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 21
Eligible and Ineligible Activities and Expenses
Refer to Chapter 2.3 for eligible and ineligible activities and expenses.

Formula Grant Allocation Estimates
The following funding table estimates how formula funds may be distributed to each MPO, contingent upon meeting the minimum eligibility criteria:

Sustainable Communities Formula Grants
Metropolitan Planning Organization Total Formula Grant
Allocation
Tahoe Metropolitan Planning Organization $160,750
Madera County Transportation Commission $164,209
Kings County Association of Governments $162,943
Shasta Regional Transportation Agency $163,172
Butte County Association of Governments $180,569
Merced County Association of Governments $197,424
San Luis Obispo Council of Governments $195,962
Tulare County Association of Governments $246,944
Santa Barbara County Association of Governments $224,579 Stanislaus Council of Governments $291,053
San Joaquin Council of Governments $341,671
Kern Council of Governments $374,899
Association of Monterey Bay Area Governments $315,267
Fresno Council of Governments $407,484
Sacramento Area Council of Governments $774,991
San Diego Association of Governments $1,021,553
Metropolitan Transportation Commission $2,106,140
Southern California Association of Governments $5,170,390 Total $12,500,000

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4. CLIMATE ADAPTATION PLANNING
Climate change adaptation aims to anticipate and prepare for climate change impacts to reduce the damage from climate change and extreme weather events, including seas level rise.

Adaptation is distinct from, but complements, climate change mitigation, which aims to reduce GHG emissions. This funding is intended to advance adaptation planning on California’s transportation infrastructure, including but not limited to roads, railways, bikeways, trails, bridges, ports, and airports.

The State-funded Climate Adaptation Planning grants ($3 million) will support tribal, local, and regional identification of transportation-related climate vulnerabilities through the development of climate adaptation plans, as well as project-level adaptation planning to identify adaptation projects and strategies for transportation infrastructure. Applicants at all stages of adaptation planning efforts including those who have not yet started adaptation work are encouraged to apply.

Climate adaptation planning projects are
defined by:
· Identification of transportation system vulnerabilities and climate-related risks to existing transportation infrastructure, including resilience improvement plans · Identification of adaptation planning projects that address climate risk impacts to existing transportation infrastructure including sea level rise, storm surge, changes in temperature and precipitation
· Planning for specific climate projects that can be programmed in existing local or regional transportation plans
Purpose and Specific Objectives
California’s climate leadership has made the ambitious commitment to reduce GHG emissions and facilitate a transition to a carbon neutral economy. However, as made clear by the impacts already affecting California and the recent IPCC report, impacts of climate change are occurring sooner than expected and they disproportionately affect the most vulnerable among us. Many
impacts, such as increased wildfires, droughts, landslides, rising sea levels, floods, severe storms, heat waves, and impacts to wildlife, are already occurring already and are expected to become more frequent and severe.

Climate change is increasingly impacting the State’s transportation system. Adaptation efforts will
enhance the resiliency of the transportation system to better withstand climate impacts. The overarching goal of this grant program is to support planning actions at local and regional levels that advance climate change adaptation efforts on the transportation system, especially efforts that serve the communities most vulnerable to climate change impacts. Taking steps now to adapt to climate change will protect public health and safety, infrastructure, and the California economy into the future.

Caltrans awarded three cycles of local adaptation planning grants allocated through the passage of SB 1. This program operated from FY 2017-18 through FY 2019-20 and was able to fund innovative tribal, local, and regional adaptation planning grants across California. Examples of the completed projects supported by the SB 1 Climate Adaptation Planning Grant Program can be found on the California Adaptation Clearinghouse’s case study4 page. The current funding in this 4 Adaptation Clearinghouse’s case study website: https://resilientca.org/challenges/

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program aims to build upon the successful SB 1 program to further advance transportation adaptation planning.

Equity, including regional representation, will be considered when awarding projects. A minimum threshold of 50 percent of the funds has been identified for projects that benefit under-resourced communities, which includes tribal, local, regional, and rural communities (for transportation planning purposes, rural is defined as all areas of the state that are not included in urbanized areas of 50,000 in population or greater; refer to Appendix C, Caltrans/Regional Agency Boundaries Map, which indicates rural areas). For purposes of the grant program, acceptable under- resourced communities’ definitions are described in Appendix A and include:
· Rural communities of 50,000 or less and outside of urbanized areas · Native American Tribal Governments
· Regionally/locally defined under-resourced communities · At or below 80% Assembly Bill 1550 (Gomez, Statutes of 2016) · At or above 75% California Department of Education, Free or Reduced Priced Meals Data · At or above 75% CalEnviroScreen Version 4.0
· At or below 25% California Healthy Places Index (HPI) Furthermore, up to $1 million will be set-aside for Native American Tribal Governments.

Climate Adaptation Planning grant applicants must demonstrate how the project fits the Grant Specific Objectives listed below, as appropriate for the applicant and project type. Additional resources (guidance, data sources, etc.) to assist in achieving these objectives can be found in Appendix A:

Applicants are required to demonstrate how the proposed effort will accomplish one or more of the following:
· Identify specific transportation infrastructure vulnerabilities5 to climate change impacts. · Identify adaptation strategies and specific actions to address identified climate-related vulnerabilities, incorporating short-, medium-, and long-term strategies that mitigate overall risk throughout the entire service life of the asset or capital project. Where appropriate, this should include nature-based shoreline solutions as part of a comprehensive approach, using the best available science and guidance.
· Include economic analysis and/or cost-benefit analysis of identified adaptation strategy or strategies when applicable.

Applicants must also demonstrate how the proposed effort will accomplish one or more the following:
· Identify benefit(s) to under-resourced communities, including transit-dependent populations.

Benefits may include improved access to safe and reliable transportation options, enhanced public safety measures in flood-prone areas, increased opportunities for community engagement in decision-making processes, protection of essential services and cultural resources, and the creation of local economic opportunities through workforce development and local hiring initiatives.

5 Transportation infrastructure includes, but is not limited to, roads, railways, bikeways, trails, bridges, ports, and airports. Vulnerable transportation infrastructure is transportation infrastructure that is susceptible to the impacts of climate change (e.g., a pedestrian-use trail that cuts through a forested area that is expected to see increased fire risk due to climate change).

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· On-going collaboration and partnerships between sectors and jurisdictions, across levels of government at a regional scale.
· Identify co-benefits of the adaptation work, such as benefits to public health, natural ecosystems, air quality, social equity, the economy, reductions in GHG emissions, critical emergency services, or reduction in contamination. Projects prioritizing nature-based solutions through natural and green infrastructure planning and adaptation strategies will be prioritized.
· Consistency with priorities and goals of the 2021 California State Adaptation Strategy, as well as any applicable local/regional resilience planning, and that the effort will identify ways to incorporate transportation-related climate adaptation needs into existing transportation plans.
· Projects must include a multistakeholder process that provides an opportunity for meaningful community engagement from communities potentially impacted by any projects identified or developed as part of the planning grant.

Competitive applicants will demonstrate one or more of the following:
· Alignment with or augmentation of existing plans, including climate action plans/adaptation plans, hazard mitigation plans, safety elements of general plans, resilience improvement plans, and/or Certified Local Coastal Programs6, that will lead to the identification and development of capital projects that can be programmed as part of local or regional transportation plans. Projects should follow State Guidance on Adaptation Planning (see Appendix A) or be aligned with local plans.
· Collaboration and partnerships with diverse external stakeholders such as businesses, non- governmental agencies, community-based organizations, federal, state, or local agencies,
and community residents.
· Consideration of the adaptation needs of environmental resources in proximity to the transportation system such as coastal resources including but not limited to tidal marsh or beaches, wildlife connectivity, wetlands, or fish passage needs. · Consideration of public access and Complete Streets’ needs.

Example Project Types
Caltrans aims to fund a variety of project types from a diverse pool of applicants to respond to these climate impacts. Applicants who have adaptation planning efforts underway, as well as those who have not yet started adaptation planning, are encouraged to apply.

The examples below are provided to illustrate the range of projects that may be appropriate for the grant program, as well as to provide ideas to potential applicants. The project types range from initial vulnerability assessment and broad planning efforts to project-level planning needs, for instance through local studies on natural hazards to inform a future project. Proposed projects are not constrained by the examples below.
· Climate Vulnerability and Risk Assessments (identification of climate vulnerabilities and risks to transportation infrastructure) which include the following steps from Phase 2 of the 2020 California Adaptation Planning Guidelines developed by the Governor’s Office of Planning and Research (OPR):

6 More information about Certified Local Coastal Programs and whether a project is located in this area can be found on the Coastal Commission’s website and further verified by reaching out to Coastal Commission staff at the applicable Coastal Commission District office. https://coastal.ca.gov/lcps.html

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o Climate Change exposure analysis that will characterize the community’s exposure to current and projected climate hazards. This will include listing all climate change effects of concern, an overview of historical climate-related hazard events and their consequences to the community, a description of how each identified effect is expected to change over the analysis period, and a map of projected change in each identified climate change effect.
o An assessment of impact sensitivity that includes a list of community populations and assets that are sensitive to the community’s climate change effects, descriptions of historical and potential future climate impacts to community elements and identifying potential climate impacts of greatest concern.
o An analysis of adaptive capacity, or the community’s current ability to cope with climate impacts to community populations or key community assets. This will include a matrix describing the community’s existing capacity to adapt to each of the priority climate impacts based on existing policies, plans, and/or programs, as well as a second, enhanced version of that matrix which describes factors that enhance local agencies’ adaptive capacity.
o The development
and application of a vulnerability scoring methodology including a table summarizing vulnerabilities across the study area. o Outreach and engagement to foster collaboration with community members to identify community strengths, assets, and climate change impacts to allow opportunities to share their expertise and provide valuable, on-the-ground understanding of climate vulnerabilities.
· Planning for extreme weather events that may impact transportation in a community. Steps taken to adapt to extreme weather may include:
o Evacuation, response, and recovery planning which may include the identification and evaluation of primary evacuation, response, and recovery corridors as well as the development of strategies, policies, or recommendations to improve evacuation, response, and recovery during extreme weather.
o Identifying communities and individuals with inadequate access to transportation options (e.g., survey to determine number and location of transit dependent residents) and the development of potential strategies to improve the evacuation potential of such communities.
o Planning for expanded access to multimodal transportation options (e.g., multimodal) in evacuation corridors to assist underserved
and transit dependent populations in efficient
evacuation during extreme events.
o Planning for Transportation Management System (TMS) and Intelligent Transportation System (ITS) elements that will assist in the ongoing relay of information pertaining to potential hazards which may include the strategic implementation of early warning systems and changeable message signs for enhanced communication during extreme weather events.
o Planning and
evaluating for decentralized energy storage needs for electric vehicle charging infrastructure to safeguard against loss of power and impacts to electric vehicles due to climate-related grid disruptions from climate-related events such as extreme heat or wildfire.
· Transportation Infrastructure Adaptation and Resilience Improvement Plans, and/or integration of transportation adaptation planning into existing plans such as a climate mitigation or adaptation plan, Certified Local Coastal Program, Hazard Mitigation Plan, General Plan (including compliance with Senate Bill 379 requirements (Jackson, Chapter 608, Statutes of 2015)), or other related planning efforts, including project-level planning for capital projects. For instance, this can include:

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 26
o Prioritization of adaptation needs and strategies in a given region/location. o Project-level planning that can be programmed through an existing local or regional transportation plan, such as evaluating infrastructure resilience to climate impacts, especially projects that integrate natural infrastructure or provide multiple benefits.

Specific examples could include: adaptation strategies related to realigning/relocating transportation infrastructure impacted by sea level rise; providing transit shelters with shade, water, or other means of cooling in locations expected to see temperature increases; preparing for increased landslide risk; etc. · Natural and green infrastructure planning (e.g., wetlands restoration along transportation corridors to protect transportation infrastructure from flooding and storm impacts, identifying and removing barriers to habitat and wildlife connectivity). For instance, this can include:
o Incorporation of natural and nature-based features into adaptation projects, plans, and/or strategies that will address current or projected climate change impacts to transportation infrastructure and communities that use them while supporting wildlife connectivity, habitat creation or restoration, and enhancing biodiversity. o The development of adaptation strategies that also incorporate elements of climate change mitigation through the incorporation
of trees and other vegetation into planning-
and project-level recommendations.
· Technical feasibility studies required to advance project-level adaptation planning. Studies may assist in resolving more technical aspects at a study location which may result in more effective implementation of adaptation elements in project scope. They may also aid in advancing adaptation work at priority locations identified in other previous plans or policies.

Studies might incorporate the following analyses:
o Coastal hazards and/or wave runup analysis at a known or identified coastal area in need of adaptation projects or solutions to make transportation assets and surrounding communities more resilient to coastal climate change hazards such as sea level rise, storm surge, and cliff retreat/coastal erosion.
o Precipitation or hydrological studies that incorporate future climate risk into the analysis to ensure that subsequent adaptation strategies implemented in the study area are more resilient to projected changes in precipitation under climate change. o Landslide or geotechnical studies that consider climate change stressors including precipitation and/or wildfire and their potential impact on landslide risk. · Technical assistance projects for under-resourced and climate vulnerable communities to perform climate adaptation planning. This will bring subject matter expertise on climate change and climate adaptation into a project at an identified location which will assist in effective actions being taken to improve climate resilience of transportation facilities and the communities that use them. This may include:
o Consultation with climate change subject-matter experts who may offer assistance on relevant climate change data as well as demographic and/or spatial data management.
o Development of engagement and outreach materials and the facilitation of public meetings or events related to climate change adaptation efforts within the community. · Development of educational resources, trainings and workshops for local jurisdictions and transportation service providers on any of the above listed adaptation planning activities. This may include:
o Educational resources that will inform members of the public or employees at governmental or other organizations on adapting to climate change impacts to Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 27
transportation facilities and how that may affect the community and steps that can be taken to better prepare for such impacts.
o Trainings for staff to establish best practices and organizational policies that will assist in preparation for future climate change impacts.

Eligible and Ineligible Activities and Expenses.

Eligible activities must have a transportation nexus per the California Constitution, Article XIX Section 2 and 3. Applicants need to consult with Caltrans district staff for more information on whether costs are eligible for funding.

Eligible Activities and Expenses
Please consult with Caltrans district staff for clarification regarding specific eligible activities or expenses. Example eligible costs include:
· Staff time
· Consultant time
· Up to 30 percent design or conceptual drawings
· Data and geospatial analysis
· Report writing and the development of associated graphics · Community surveys, meetings, charrettes, and focus groups · Bilingual services for interpreting and/or translation services for meetings · Community/stakeholder advisory groups
· Project-specific staffing
· Web application development and dashboard
· Light snacks and refreshments for public workshops (no full meals), subject to Caltrans approval
o Requests to enhance public participation beyond the currently eligible costs for light refreshments will need justification regarding the cost benefit of the anticipated increase in public participation and must be submitted to Caltrans, and FHWA, when applicable, for consideration and approval, on a case-by-case basis.

Ineligible Activities and Expenses
Some activities, tasks,
project components, etc. are not eligible under this grant program. If an application has any of the following elements, it will be disqualified. Ineligible activities and expenses include:
· Projects without a transportation nexus
· Project Initiation Documents
· Environmental studies, plans, or documents normally required for project development under the National Environmental Policy Act or the California Environmental Quality Act · Engineering plans and design specification work
· RTP or updates to the RTP
· Construction projects or capital costs, such as the building of a facility, or maintenance · Purchasing of office furniture or other capital expenditures · Decorations (e.g., for public workshop events)
· Acquisition of vehicles or shuttle programs
· Organizational membership fees
· Incentives for public participation

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o Requests to enhance public participation beyond the currently eligible costs for light refreshments will need justification regarding the cost benefit of the anticipated increase in public participation and must be submitted to Caltrans, and FHWA, when applicable, for consideration and approval, on a case-by-case basis. · Charges passed on to sub-recipient for oversight of awarded grant funds
· Other items unrelated to the project
Tips for a Successful Climate Adaptation Planning Grant Application
Strong applications will integrate all aspects of the grant program’s purpose and specific objectives listed above. Additionally, strong applications will support statewide goals and objectives currently being implemented by the State of California, including the Grant Program
Considerations (see Chapter 1.2).

Some guidance is provided below; however, it is not intended to be all inclusive.

Criteria for Successful Climate Adaptation Planning Grant Applications · Clearly demonstrate how the project promotes climate change adaptation planning on the California transportation system and how the project aligns with the grant specific objectives.
· Partner with Caltrans to identify and address statewide, interregional, or regional transportation adaptation needs in the State Highway System (or multimodal transportation system for transit -focused and/or active transportation projects. · Strengthen government-to-government relationships.
· Demonstrat e
that the proposed planning effort will lead to adaptation project funding proposals and/or programmed system improvements. This can include advancing planning to lead to project development through development of a cost estimate, pursuing a technical feasibility study for adaptation options, and/or developing a conceptual design.
· Identify and address deficiencies
in the multim odal transportation system, including the needs of environmental justice and under -resourced communities, including Native American Tribal Governments and rural communities.
· Encourage stakeholder collaboration and include active community engagement. · Promo te the region’s RTP SCS (where applicable), State planning priorities (Government Code Section 65041.1), and climate adaptation goals (State Adaptation Strategy). · Demonstrate that the proposed planning effort will use the best available science for climate change projections.
· For proposed planning efforts in the California Coastal Zone, demonstrate that all analyses and final deliverables will be consistent with the applicable Certified Local Coastal Program, California Coastal Act (for projects in the Coastal Commission’s retained jurisdiction), and Coastal Commission guidance documents on sea level rise,
environmental justice, and tribal community engagement.

General Tips
· Refer to existing State guidance on climate adaptation planning to ensure alignment with State direction, State data, and guidance, including the California Adaptation Planning Guide, and resources that can be found on the State Adaptation Clearinghouse.
· Consult with your district representative for technical assistance before the application

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 29
deadline.
· Use the Samples and Checklists provided for the Application, Scope of Work, and Cost and Schedule.
· Provide tailored letters of support and photos of project area as relevant to enhance the application. Project supporters should describe why they support the project and how they would benefit from the project. If applicants/supporters do not have the time/resources to provide tailored letters of support, a petition signed by supporters in a simple table format that lists the supporters and specifically how supporters will benefit the proposed project will suffice.
· Include Caltrans as an active partner in
the study, as applicable.
· Some sections of the grant application may seem redundant when discussing under- resourced community engagement, overall public engagement, and stakeholder involvement. Although the general public and under -resourced communities are stakeholders for any project, for application purposes, the strategy and methods for engaging these groups will be different, as described below. o Overall
public engagement will describe the general strategy to engage the public at large;
o Under -resourced communities' engagement will explain how the project will go above and beyond business as usual to address the specific needs of under -resourced communities and use unique methods to involve these groups in the decision -making process; and
o Stakeholder engagement will explain how partner agencies, businesses, and/or non- profit community -based organizations will be involved throughout the project.

Project Management
· Scope of Work: Refer to the Scope of Work Checklist in Appendix B. · Cost and Schedule : Refer to the Cost and Schedule Checklist in Appendix B.

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5. STRATEGIC PARTNERSHIPS
$1.5 million in FHWA State Planning and Research (SPR) Part 1 funds and $3 million in Federal Transit Administration (FTA) Section 5304 funds, or a combined total of $4.5 million. FHWA SPR Part 1 funds will be distributed through a competitive program to MPOs and RTPAs. FTA 5304 funds will be distributed through a competitive program to MPOs, RTPAs, and transit agencies. Funding distribution for the competitive program will depend on the quality and number of applications.

Purpose and Specific Objectives
Strategic Partnerships are intended to fund planning projects that partner with Caltrans to address needs on or connecting to the State Highway System, while the transit sub-category will address multimodal planning projects that focus on transit.

The objectives of the Strategic Partnerships and Strategic Partnerships - Transit grants are to:
· Strengthen government-to-government partnerships
· Accomplish the Federal Planning Factors
· Achieve the Caltrans Mission and the Grant Program Objectives Federal Planning Factors

1. Support the economic vitality of the metropolitan area, especially by enabling global competitiveness, productivity, and efficiency

2. Increase the safety of the transportation system for motorized and non-motorized users

3. Increase the security of the transportation system for motorized and non-motorized users

4. Increase accessibility and mobility of people and freight

5. Protect and enhance the environment, promote energy conservation, improve the quality of life, and promote consistency between transportation improvements and State and local planned growth and economic development patterns

6. Enhance the integration and connectivity of the transportation system, across and between modes, for people and freight

7. Promote efficient system management and operation

8. Emphasize the preservation of the existing transportation system

9. Improve the resiliency and reliability of the transportation system and reduce or mitigate stormwater impacts of surface transportation

10. Enhance travel and tourism
Complete Streets Local Match Waiver
FHWA and FTA have approved a local match waiver for Complete Streets related grant applications. Applicants with a Complete Streets
related grant application must submit a request
to receive the local match waiver. Complete Streets related activities include, but are not limited to, the following activities:
· Adoption of Complete Streets standards or policies
· Development of a Complete Streets prioritization plan that identifies a specific list of Complete Streets projects to improve the safety, mobility, or accessibility of a street · Development of transportation plans that:

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 31
o Create a network of active transportation facilities, including sidewalks, bikeways, or pedestrian and bicycle trails, to connect neighborhoods with destinations such as workplaces, schools, residences, businesses, recreation areas, healthcare and childcare
services, or other community activity centers
o Integrate active transportation facilities with public transportation service or improve access to public transportation
o Create multiuse active transportation infrastructure facilities (including bikeways or pedestrian and bicycle trails) that make connections within or between communities o Increase public transportation ridership
o Improve the safety of bicyclists and pedestrians
· Regional and megaregional planning (i.e., multi-jurisdictional transportation planning that extends beyond MPO and/or State boundaries) that address travel demand and capacity constraints through alternatives to new highway capacity, including through intercity passenger rail
· Development of transportation plans and policies that support transit-oriented development

Example Project Types
Example Project Types - Strategic Partnerships
· Studies that identify interregional, inter-county, and/or statewide mobility and access needs · Comprehensive Multimodal Corridor Plans
· Corridor performance/preservation studies
· Corridor enhancement studies
· Studies that evaluate transportation issues involving ground access to international borders, seaports, airports, intermodal facilities, freight hubs, and recreational sites · Development of planning activities that result in sustainable transportation investments · Enhanced tools to capture GHG benefits of Operations and System Management projects · Integration of transportation and economic development · Studies and plans that can help to quantify and highlight the value and importance of the rural State transportation system which connects large urban centers to rural open space, State and federal lands, and recreation and agriculture hubs · Planning for sustainable freight
· Planning for transportation safety
· Transportation planning for special events
· Studies for relinquishment of state routes
· Statewide or interregional research or modeling tools · Transportation demand management plans
· System investment prioritization plans
· Assessment and integration of new technology
· Complete street plans that consider last-mile freight · Curbside freight management plans
· Agriculture goods movement plans
· Freight/supply chain resiliency studies
· Studies that evaluate accessibility and connectivity of the multimodal transportation network

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· Studies that evaluate accessibility and connectivity of the multimodal transportation network · Integration of transportation and environmental planning · Studies, plans, and policies that address land use conflicts with major transportation corridors such as major highways, ports, shipping and freight corridors, etc. that are near sensitive land uses such as homes, schools, parks, etc. or potentially impacted by climate change · Studies, plans or planning methods that advance a community’s effort to reduce single occupancy vehicle trips and transportation related GHG through strategies including, but not limited to, advancing mode shift, demand management, travel cost, operational efficiency, accessibility, and coordination with future employment and residential land use Example Project Types - Strategic Partnerships Transit
· Identification of policies and procedures to integrate transit into the transportation system and planning process
· Statewide and regional transit planning surveys and research · Identification of policies, strategies, and programs to manage transit assets, preserve transit facilities, and optimize transit infrastructure
· Projects that evaluate accessibility and connectivity of the multimodal transportation network · Transit technical planning studies and operational analyses to optimize system performance · Studies or plans that evaluate rail or multimodal connectivity · Studies or plans that evaluate bike and pedestrian connections to transit · Short- and long-range Transit plans
· Station area planning
· Complete Streets plans or multimodal transportation plans · Studies that evaluate accessibility and connectivity of the multimodal transportation network · Transit planning for zero emission bus fleets
· Integration of transit, new emerging technologies, and shared mobility services · Strategies to increase transit ridership
· Studies, plans or planning methods that assist transportation agencies in creating sustainable communities and transit-oriented development
Eligible and Ineligible Activities and Expenses
Eligible Activities and Expenses
Eligible activities must have a transportation nexus per the California Constitution, Article XIX Section 2 and 3. Please consult with Caltrans district staff for more information on whether costs are eligible for funding.

Some examples of eligible costs include:
· Data gathering and analysis
· Planning consultant procurement
· Advertising for consultant procurement
· Advertising for public workshops, e.g., flyers, paid media ads · Virtual outreach activities and on-line meetings
· Travel expenses (See Chapter 6.5 for details)
· Up to 30 percent conceptual drawings and design

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· Equipment (as defined in 2 CFR Part 200.33)7 purchases must remain under $5,000 or depreciation will need to be taken in to account when the grant project is completed since equipment could have future uses. 2 CFR Part 200.4368 provides the criteria for depreciation, at the GovInfo website.
· Community surveys, meetings, public workshop room rental, charrettes, focus groups · Bilingual services for interpreting and/or translation services for meetings · Community/stakeholder advisory groups
· Light snacks and refreshments for public workshops (no full meals), subject to Caltrans and federal approval
o Requests to enhance public participation beyond the currently eligible costs for light refreshments will need justification regarding the cost benefit of the anticipated increase in public participation and must be submitted to Caltrans, and FHWA, when applicable, for consideration and approval, on a case-by-case basis. · Project administration (up to 5 percent of the grant is allowed, i.e., quarterly reports, invoicing, and kick-off meeting with Caltrans)
Ineligible Activities and Expenses
Some activities, tasks, project components, etc. are not eligible under these grant programs. If an application has any of the following elements, it will be disqualified. Ineligible activities and expenses include:
· Environmental studies, plans, or documents normally required for project development under the National Environmental Policy Act or the California Environmental Quality Act · Engineering plans and design specification work
· Project Initiation Documents
· Program or project implementation
· Repurposing unspent grant funds
· Consultant mark-ups
· Application development to pursue construction funds/project implementation · RTPs or updates to the RTP
· Economic development plans or studies
· Land use plans or studies
· General Plans or updates to elements
· Construction projects, capital costs, such as the building of a facility, or maintenance · Office furniture purchases, or other capital expenditures · Decorations, e.g., for public workshop events
· Acquisition of vehicles or shuttle programs
· Organizational membership fees
· Incentives for public participation

7 Electronic Code of Federal Regulations, 2 Code of Federal Regulations, Part 200.33, 2020, https://www.ecfr.gov/on/2017-01-03/title-2/subtitle-A/chapter-II/part-200/subpart-A/subject-group- ECFR2a6a0087862fd2c/section-200.33
8 Govinfo, 2 Code of Federal Regulations, Part 200.436, 2022, https://www.govinfo.gov/app/details/CFR-2022-title2-vol1/CFR-2022-title2-vol1-sec200-436 Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 34
· Charges passed on to sub-recipient for oversight of awarded grant funds · Other items unrelated to the project

Tips for Successful Strategic Partnerships Grant Applications Criteria for Successful Strategic Partnerships Grant Applications · Partner with Caltrans to identify and address statewide, interregional, or regional transportation deficiencies in the State Highway System (or multimodal transportation system for transit -focused projects)
· Strengthen government-to-government relationships, and · Result in programmed system improvements
General Tips
· Refer to Appendix A, Multimodal System Planning, for guidance documents in the development of proposed corridor plans/studies, freight plans/studies, and other multimodal system planning documents.
· Consult with your district representative for technical assistance before the application deadline.
· Use the Samples and Checklists provided for the Application, Scope of Work, and Cost and Schedule.
· Include Caltrans as an active partner in the study. · Provide tailored letters of support and project area photographs to enhance the application. Project supporters should describe why they support the project and how they would benefit from the project.
· If applica nts/supporters do not have the time/resources to provide tailored letters of support, a petition signed by supporters in a simple table format that lists the supporters and specifically how supporters will benefit the proposed project will suffice.

Project Summary
· Concisely describe the project in less than 150 words. Explain “What parties are involved, the proposed major milestones, and why the project is necessary.” Project Justification
· Clearly define and explain the transportation problem or deficiency that the project will attempt to address. Why is it critical to address the problem now? Make the case for a critical need that the project will address and support it with verifiable data, if available.

Grant Specific Objective
Demonstrate how the project fits every aspect of the Grant Specific Objective, as appropriate for the applicant and project type.

Project Management
· Scope of Work: Refer to the Scope of Work Checklist in Appendix B. · Cost and Schedule: Refer to the Cost and Schedule Checklist in Appendix B.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 35

6. GRANT PROJECT ADMINISTRATIVE

REQUIREMENTS
The content of this chapter should be notably considered in the development of grant applications as it lays the foundation for what to expect when applying for these grant funds. Upon award, grantees will receive more specific guidelines including administrative and reporting requirements.

Coordination with Caltrans
Caltrans is committed to be an active partner. If awarded a grant, the applicant should include Caltrans district staff when planning both technical advisory and community meetings. In addition, Caltrans district staff will help to ensure that the approved Scope of Work, Cost and Schedule, and project funding will be maintained throughout the life of the contract. Applicants are also recommended to engage Caltrans district staff throughout the entire grant life, when applicable.

Caltrans may contact grantees to participate in peer exchange forums to promote information sharing and best practices.

If an agency does not demonstrate adequate performance and timely use of funds, Caltrans may take appropriate actions, which can include termination of the grant.

Third Party Contracts
The agreements between a grantee and a sub-applicant/recipient, consultant, or sub-consultant are often referred to as “third party contracts.” An eligible sub-applicant should be identified by an eligible applicant at the onset of the application. Eligible sub-applicants/recipients may be added to an application after award with prior Caltrans approval. If a grantee or a sub-recipient is going to hire a consultant to perform work during the project, then proper procurement procedures must always be used. An on-call shortlist may be used for consultant procurement if the on-call shortlist was established through a competitive process. Additionally, the consultant services solicited via the on-call shortlist must be consistent with the services sought in the initial request for proposals used to establish the on-call shortlist. Agencies may not use another agency’s on-call shortlist unless they are a grantee’s sub-applicant.

Grantees may use their agency’s procurement procedures if they comply with the State Contracting Manual, Chapter 5, the Local Assistance Procedures Manual, Chapter 10, and the terms of the agreement with Caltrans. In addition, work can only be contracted if it has been stated in the applicant’s
Scope of Work and Cost and Schedule. A grantee is fully responsible for all work performed by its sub-recipient, consultant, or sub-consultant. Caltrans solely enters a contract directly with the grantee; therefore, the grantee is responsible to ensure that all third parties adhere to the same provisions included in the contractual agreement between Caltrans and the grantee.

All government funded consultant procurement transactions must be conducted using a fair and
competitive procurement process that is consistent with the State Contracting Manual, Chapter 5,9 9 California State Contracting Manual Volume 1, Chapter 5, 2023, https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List- Folder/State-Contracting

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 36
the Local Assistance Procedures Manual, Chapter 10,10 and the terms of the agreement with Caltrans. All documentation of third-party contract procurements must be retained, and copies of all agreements must be submitted to Caltrans. For more information on third party contracting, visit the State Contracting Manual and the Local Assistance Procedures Manual Websites.

Quarterly Reporting
Quarterly Progress Reports (QPR) are required to be submitted for each State FY quarter after the grant recipient has received a Notice to Proceed letter. The table below illustrates the State FY timeframes for submitting the QPR to Caltrans district staff.

Quarterly Progress Report Timeframes
Quarter 1 Quarter 2 Quarter 3 Quarter 4
July – September October – December January – March April – June For MPOs and RTPAs, the progress and expenditure of each awarded grant project must be included as part of the OWP Quarterly Progress and Expenditure Report. If this method of reporting is not adequately satisfied, Caltrans staff will require separate quarterly reports for each awarded grant project.

All other
primary grant recipients shall submit progress reports every quarter for each awarded grant project. Caltrans district staff will provide the brief report form and due dates.

Integrated Climate Adaptation and Resiliency Program (ICARP) Case Studies
Caltrans and the Governor’s Office of Planning and Research are sharing the lessons learned from this grant opportunity to inform other existing or new State grant programs. To this end, Climate Adaptation Planning primary grant recipients will prepare a final case study/write-up upon grant completion to be included in the ICARP Clearinghouse (described in Appendix A., Pages 70-71), which was developed to share information, resources, and case studies with local and regional jurisdictions. Previous case studies can be found on the ICARP Case Study website11. These case studies will be used to develop guidance for adaptation work in the future. Caltrans will share progress reports with the ICARP Technical Advisory Council at regular intervals.

Climate Adaptation Planning grant recipients are also invited and encouraged to request technical assistance support from the ICARP program, including bringing key challenges or lessons learned to the Technical Advisory Council for their input. Caltrans staff will provide ICARP contact information upon request.

Final Case Study Requirements:
· Include images and GIS files of maps, when applicable 10 Caltrans Local Assistance Procedures Manual, Chapter 10, 2024, https://dot.ca.gov/programs/local-assistance/guidelines-and-procedures/local-assistance- procedures-manual-lapm
11 ICARP Case Study website: https://resilientca.org/case-studies/

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 37
· Emphasize processes or results that can be adapted or replicated for use in multiple jurisdictions or in various parts of the state
· Document the under-resourced community’s involvement throughout the entire process of the proposed project and tools used to capture this information Invoicing and Financial Requirements
Pre-Award Audit
The Sustainable Communities grants are available in amounts up to $700,000, Strategic Partnerships grants are up to $500,000 and Climate Adaptation Planning grants are up to $3,000,000. However, any awarded grant in excess of $250,000 may require a pre-award audit. The pre-award audit is to ensure that recipients of State or federal funds maintain adequate financial management systems prior to receiving the funds. Pre-award audits may be required of new grantees, agencies that have not recently been audited, agencies that have undergone prior audits with significant weaknesses or deficiencies in their financial management systems, or those determined to be a higher risk to Caltrans. If a pre-award audit is needed, the local Caltrans district office will contact the grantee to facilitate the appropriate action.

Accounting Requirements
Grantees and sub-applicants/recipients are required to maintain an accounting system that properly records, and segregates incurred project costs and matching funds by line item.

The
accounting system of the grantee, including its sub-applicants and subcontractors, must conform to Generally Accepted Accounting Principles that enable the determination of incurred costs at interim points of completion and provides support for reimbursement payment vouchers or invoices sent to or paid by Caltrans. Allowable project costs must comply with 2 Code of Federal Regulations (CFR), Part 200.

The accounting system must have the following attributes:
· Account numbers identifying allowable direct, indirect, and unallowable cost accounts · Ability to accumulate and segregate allowable direct, indirect, and unallowable costs into different cost accounts
· Ability to accumulate and segregate allowable direct costs by project, funding source, and type of cost (e.g.: labor, consulting, pass-thru, or other) · Internal controls to maintain integrity of financial management system · Ability to account and record costs consistently and to ensure costs billed are in compliance with 2 CFR Part 200
· Ability to ensure costs billed reconcile to general ledgers and job costing system; and · Ability to ensure costs are in compliance with contract terms and State and federal requirements
The types of records that are used to support the existence of these attributes include the following:
· Subsidiary general ledgers
· Chart of accounts
· Time keeping records
· General ledger and job costing ledgers
· Audited financial statements
· Accounting policy and procedure manuals specific to the agency · Documents supporting actual costs (e.g. invoices, canceled checks)

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 38
It is the grantee’s responsibility, in conjunction with Caltrans district staff, to monitor work and expenses to ensure the project is completed according to the contracted Scope of Work and Cost and Schedule. Grantees must monitor work and costs to ensure invoices are submitted on a regular and timely basis (monthly or quarterly as milestones are completed). Grantees must communicate with their local Caltrans district office to ensure any issues are addressed early during the project period.

Local Match
All tasks require a grant amount and local match, except for the administrative tasks – Task 01 and Task 02, where both a grant amount and local match are optional. The local match is a financial requirement that demonstrates the grantee/local agency is vested in the project.

Because the local match is part of the total project cost, the local match can only fund eligible grant activities. Therefore, grant recipients must fund ineligible activities with funds other than the local match.

The local match can be all cash, all third-party in-kind contributions, or a combination of the two.

The minimum local match is a percentage of the total project cost (i.e., minimum local match amount plus the grant amount) and is identified in the Cost and Schedule at the Task level.

Beginning with FY 2021-22, grantees can provide a tapered local match, which allows grantees to vary the required local match ratio for each task and with every Request for Reimbursement.

Applicants must identify if they will utilize the tapered match on the Cost and Schedule. Grantees agree to satisfy the total local match amount by the grant expiration date.

Local Match Sources
· Sustainable Communities Competitive and Technical
Federal toll credits, FHWA PL, and FTA Section 5303, and Sustainable Communities Formula are ineligible match sources; otherwise, any source of funds may be used if the proposed grant work is an eligible activity for the local match fund source.

Local match is not required for Native American Tribal Governments. · Sustainable Communities Formula
Federal toll credits are an ineligible match source; otherwise, any source of funds may be used if the proposed grant work is an eligible activity for the local match fund source. If MPOs are matching with federal Consolidated Planning Grant (CPG) funds (i.e., FHWA PL or FTA Section 5303), the work must all be eligible. However, federal approval is required as CPG objectives may differ and must be aligned with Sustainable Communities Formula specific objectives and 23 CFR Part 450 requirements.12 · Climate Adaptation Planning
Federal toll credits, FHWA PL, and FTA Section 5303, and Sustainable Communities Formula are ineligible match sources; otherwise, any source of funds may be used if the proposed grant work is an eligible activity for the local match fund source.

Local match is not required for Native American Tribal Governments. · Strategic Partnerships and Strategic Partnerships – Transit Any non-federal source of funds may be used if the proposed grant work is an eligible activity for the local match fund source. If MPOs are matching with Sustainable Communities 12 Title 23, Code of Federal Regulations, Part 450,
https://www.govinfo.gov/content/pkg/CFR-2004-title23-vol1/pdf/CFR-2004-title23-vol1-part450.pdf Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 39
Formula funds, the objectives for each grant must be in alignment. Caltrans approval is required.

Cash Match
· Staff time from the primary applicant counts as cash match. Staff time charged to a specific project that has been funded and or reimbursed, cannot be used to meet the match requirement for another project.
· Sub-applicant staff time, if reimbursed, is considered cash match. If donating their time, it is considered in-kind.
· Revenue sources for local cash match can include local sales tax, special bond measures, private donations, private foundations, etc.

Third-Party In-Kind Match
Third party in-kind contributions are typically goods and services donated from outside the primary grantee’s agency and can be counted towards the minimum local match requirement. Examples of third-party in-kind contributions is the value of donated:
· Public outreach materials
· Interpreter Services
· Facilities
· Equipment
· Advertising
· Student volunteers and other stakeholder staff time
· Other goods and services
The Third-Party In-Kind Valuation Plan is required to itemize and place value on donated goods and services. It must be submitted to Caltrans for approval only if the grant application is awarded.

The Third-Party In-Kind Valuation Plan Checklist and Template can be found in Appendix B.

In addition:
· The value of third-party in-kind contributions must be directly benefiting and specifically identifiable to the project.
· Minimum wage standards for student workers or Caltrans pay rates for equal-level volunteers are acceptable base values of volunteer time.
· Third-party in-kind contribution information must be identified on the Grant Application Cover Sheet, the Cost and Schedule, and the project specific Work Element in the OWP (if applicable).

Minimum Local Match Requirements
Applicants/grantees will be held responsible for any local commitments above the minimum requirement included in the grant application and will be made part of the grant agreement with Caltrans. Once the agreement is executed, any decrease to local match commitments above the minimum required amount will require Caltrans approval through an amendment. The example shown in the following table illustrates the minimum local match requirement based on a Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 40
grant request of $300,000. Applicants must use the Local Match Calculator13 to ensure the correct amounts are reflected on the Grant Application Cover Sheet and the Cost and Schedule.

Minimum Local Match Requirements (Percentage of Total Project Cost) Grant Program Grant Request Local Match Total Project Cost Sustainable Communities,
Climate Adaptation
Planning, and Strategic
Partnerships –Transit

88.53%
Example: $300,000

11.47%*
Example: $38,868
100%
Example: $338,868
Strategic Partnerships
80%
Example: $300,000
20%
Example: $75,000
100%
Example: $375,000
*Climate Adaptation Planning local match is not required for Native American Tribal Governments.

Indirect and Direct Costs
Direct costs are those costs that can be identified specifically with a particular final cost objective, such as a state award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as either direct or indirect costs, also known as facilities and administrative costs or overhead costs.

Indirect Costs are costs that are incurred for a common or joint purpose. These costs benefit more than one cost objective and cannot be readily identified with a particular final cost objective.

Reproduction costs, computer purchase, and office supplies are considered indirect costs, unless
they are tied to a specific task or activity then they are considered direct costs.

Indirect Cost Allocation Plan/Indirect Cost Rate Proposal If a grantee, including sub-recipients and third-party
contractors/consultants, are seeking reimbursement of
indirect costs, they must submit an Indirect Cost
Allocation Plan (ICAP)or an Indirect Cost Rate Proposal (ICRP) to Caltrans. Submissions should be sent to
Caltrans Internal Audits Office (CIAO) or Independent
Office of Audits and Investigations (IOAI).

CIAO is responsible for the review and approval of
government entities and non-profits ICAP submissions.

IOAI is responsible for the review and approval of for
profit (Consultant) ICAP submissions. Consultants submit their ICAPs only when they are initially included in the contract and not on an annual basis.

An ICAP or
ICRP must be prepared and submitted
yearly in accordance with 2 CFR, Part 200. Indirect costs may be sought for reimbursement only 13 Local Match Calculator posted on-line at (will download as MS Excel spreadsheet):
https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/regional- and-community-planning/sustainable-transportation-planning-grants

IMPORTANT NOTE
ü Applications must include
the estimated indirect cost
rate on the Cost and
Schedule.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 41
after the grantee has received ICAP/ICRP approval from CIAO. For guidance on the ICAP/ICRP submission process, visit Caltrans Internal Audit Office14 and the Caltrans LAPM Chapter 5 Accounting/ Invoicing. 15
Most Common Types of Indirect Cost Rates
The following are the most common types of Indirect Cost Rates:
· Fixed Rate
· Final Rate
· De Minimis Rate
· Safe Harbor Rate
Changes to the De Minimis Rate are outlined in the revised 2 CFR Part 200.414(f)16 that became effective November 12, 2020.

Applications must include the estimated indirect cost rate on the Cost and Schedule.

Travel Expenses
Grantees may be eligible to claim travel expenses if they have been approved in the Scope of Work and Cost and Schedule. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Personnel Administration for similar employees (i.e., non-represented employees). Any request for reimbursement that exceeds the State rates will be denied. The grantee is responsible for paying beyond the State rates and cannot use the local match because it is an ineligible activity.

For more information on eligible travel expenses, visit the Caltrans Travel Guide Website. 17 Requests for Reimbursements
· Grant payments are made only as reimbursements.
· Grant reimbursements will be based on actual allowable incurred costs. · Grant costs will be reimbursed if incurred on or after the start date and the issuance of the Notice to Proceed and before the expiration date.
· Request for Reimbursements (RFRs) must be submitted at least quarterly, but no more frequently than monthly.
· A one-time, lump sum invoice or RFR for the entire grant is not allowed. · Grantees must pay sub-recipients and subcontractors prior to submitting an RFR to Caltrans. · Incomplete or inaccurate RFRs will be returned for correction. · An accounting management system generated report must accompany all RFRs. · Refer to Chapter 9.2 to determine final RFR dates
14 Caltrans Internal Audits Office, ICAP/ICRP Submission Process, 2022, https://dot.ca.gov/programs/audits/submission-review-main 15 Caltrans Local Assistance Procedures Manual Chapter 5, 2020, https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lapm/ch05.pdf 16 Electronic Code of Federal Regulations, 2 Code of Federal Regulations, Part 200.414(f), 2020, https://www.ecfr.gov/cgi-bin/text-idx?node=se2.1.200_1414&rgn=div8 17 Caltrans Travel Guide, 2020, https://dot.ca.gov/programs/accounting/travel-guide Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 42
· When requesting reimbursement of indirect costs, the following items are required as part of the submitted RFR package:
o An approved ICAP/ICRP rate must be on file for the FY in which the costs occurred. o A financial management system report that segregates direct/indirect costs by fund source.
o ICAP support document spreadsheet that identifies direct charges and rate applied to those charges.
· Grantees must pay final consultant invoices by the final invoice due date to be eligible for reimbursement when submitting a final RFR.

Non-Discrimination Requirements
Title VI Non-Discrimination Requirement
The FHWA and the FTA each have requirements that recipients of Metropolitan Planning federal funds must demonstrate continued compliance with Title VI. Compliance with Title VI includes conducting meetings in a fair and reasonable manner that are open to all members of a community. Interpretation and translation services should also be provided when appropriate.

Compliance reflects not only the law but is also a good policy that builds the kind of trust and information sharing upon which successful planning is done. Even where a city or county may not
be receiving federal funding for transportation, the Civil Rights Restoration Act of 1987 also obligates that a city or county comply with Title VI, if it receives any other federal funding for any program. Refer to the Caltrans Title VI website18 for more information.

Disadvantaged Business Enterprises
Successful grant
applicants are expected to market contracting opportunities to all small businesses, including DBEs and Disabled Veteran Business Enterprises.

Grant recipients of federal funds are required to report any contracting opportunities that may involve DBE participation. DBE reporting is required twice a year: April 1 and October 1. For details about DBE requirements, visit the Office of Civil Rights website.19 Final Product
All final reports funded through the Sustainable Transportation Planning Grant Program shall credit the FHWA, FTA, or Caltrans’ financial participation on the cover or title page. An Americans with Disabilities Act of 1994 (ADA)-accessible electronic copy of all final reports shall be forwarded to the Caltrans district office responsible for the administration and oversight of the grant. There are resources to assist with development of ADA compliant documents.20 18 Caltrans, Title IV of the Civil Rights Act of 1964, 2020, https://dot.ca.gov/programs/civil-rights/title-vi
19 Caltrans, Office of Civil Rights, Disadvantaged Business Enterprise Website:
https://dot.ca.gov/programs/civil-rights/dbe
20 State of California Accessibility Website: https://www.ca.gov/accessibility/ California Department of Rehabilitation Accessibility Website:
https://www.dor.ca.gov/Home/Accessibility
MS Office Support Video: https://support.office.com/en-us/article/video-check-the-accessibility-of- your-document-9d660cba-1fcd-45ad-a9d1-c4f4b5eb5b7d

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 43
Any technologies or inventions that may result from the use of these grants are in the public domain and may not be copyrighted, sold, or used exclusively by any business, organization, or agency. Caltrans reserves a royalty-free, non-exclusive, and irrevocable license to reproduce, publish, or otherwise use and to authorize others to use for public purposes.

Applicants should thoughtfully develop the project title. Once a Caltrans grant agreement is executed, changes to the original grant project title are not allowed. Grantees may use an “Also Known As” (AKA), but both the AKA and the original title must be included in the final product.

Grantees must submit their final product with the final RFR to Caltrans for approval and reimbursement. Grantees will not be reimbursed for activities that are not completed, and the activity budget must be left unexpended.

Project Close-Out Survey
Once awarded grant projects are completed, grantees will complete a close-out survey to describe the successes and challenges of their project. The survey will give the opportunity to (1) highlight successes and obstacles in project implementation of the concepts identified by the planning process, (2) identify best practices in transportation planning, with an emphasis in public engagement,
and (3) identify studies/plans that have been or will be funded for continued project development. Information from the survey will be compiled into a report to illustrate the value of the grant program and inform planning practitioners in their planning efforts. Caltrans’ goal is to provide transparency and accountability for the program, as well as to use the survey feedback to better serve future grant applicants.

California Public Records Act
All applications are subject to the California Public Records Act of 196821. As such, applicants may be contacted by anyone who requests their grant application. While Caltrans is obligated to share applications at any time, awarded applicants should avoid a potential conflict of interest when contacted by consultants who may inquire about the grant-funded project and not give the consultant an unfair advantage for the consultant procurement process. 21 Leg info, California Government Code, Sections 6250 - 6270.7,
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?division=7.&chapter=3.5.&lawCod e=GOV&title=1.&article=1.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 44

7. APPLICATION SUBMITTAL PROCESS
The Sustainable Transportation Planning Grant Program is highly competitive. This section provides applicants with supplemental information as well as details on required documents that must accompany an application at the time of submittal. All applicants are strongly encouraged to adhere to these requirements in order to score competitively during the application evaluation process.

Applicant Eligibility
Primary applicants must
have statutory authority to conduct transportation/transit planning for their jurisdiction. Generally, the local and regional agencies have this specific authority. Native American Tribal Governments must be federally recognized to be eligible. Refer to the public entity’s bylaws to find this information.

Early Coordination and Technical Assistance for Primary Applicants
Sub-applicants are encouraged to work far in advance of the application deadline with the appropriate primary applicant to coordinate application development. It is also beneficial for sub-applicants to be informed of the appropriate primary applicant process and schedule, as they may differ slightly from those of Caltrans. RTPAs residing within MPO boundaries should also coordinate application development with the MPO, as it is critical to ensure that proposed studies align with the RTP SCS/APS for the entire MPO region and do not duplicate efforts being applied for or already awarded to the MPO.

Caltrans district staff (See Appendix D) are available during the application period to answer questions and help interested groups complete their applications.

For questions specific to the Grant Application Guide, applicants are also welcomed to contact:

Application Guide
Technical Assistance Contacts
Sustainable Communities and
Strategic Partnerships
Kevin Mariant, Grant Management Branch Chief
Caltrans Division of Transportation Planning
Office of Regional and Community Planning
Email: [email protected]
Climate Adaptation Planning
Julia Biggar, Climate Change Branch Chief
Caltrans Division of Transportation Planning
Office of Air Quality and Climate Change
Email: [email protected]
Questions about Housing
Element Compliance for
Sustainable Communities
Competitive and Technical
Paul McDougall
Department of Housing and Community Development
Email: [email protected]

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 45
Download the latest version of Adobe Reader DC ® to complete the application form. This version of Adobe is available free of charge.

7.3 Application Submittal Instructions
The Grant Application Guide, Application forms, and required templates are available on the Caltrans Sustainable Transportation Planning Grant Program website, at:
https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/regional- and-community-planning/sustainable-transportation-planning-grants · All grant application packages are required to be submitted via Smartsheet · Smartsheet features work better with Google Chrome browser · Smartsheet progress cannot be saved. To avoid issues, follow these instructions:

1. Complete the Application Cover Sheet in MS Word

2. Copy and paste the Application Cover Sheet fields into the Smartsheet form

3. Have the PDF attachment ready to upload into the Smartsheet form · An agency may only submit one application package per Smartsheet submittal. · An application cannot be submitted to more than one grant category. · The required items outlined on the Grant Application Checklist in Appendix B must be submitted as a single PDF document (not to exceed 25MB); if awarded, original formats will be requested.
· All application documents must list the applicant’s legal name. · A confirmation of receipt can be sent via Smartsheet if the applicant checks the box to receive a copy of the submittal.

Submit applications via Smartsheet Form January 22, 2025 Hard copies will not be accepted, and late applications will not be reviewed.

Caltrans anticipated award announcements: Summer 2025
Caltrans district staff are available during the application period to answer questions and help interested groups complete their applications. Refer to Appendix D, Caltrans District Contact List, for contact information.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 46

7.4 Application Supplemental Documentation
The following documents are not required, but enhance the overall application and typically result in a more competitive application during the evaluation process:

Letters of Support
If submitted, letters of support must be included with the application package. Letters received late or separate
from the application package will not be considered.

The letters should be addressed to the applicant. Such
letters can come from community-based organizations,
local governments, regional governments, Native
American Tribal Governments, service agencies, and
elected officials.

Graphics
Clearly labeled photographs, maps, planning diagrams,
land use or design illustrations, or other relevant graphic representations of the proposed project area convey
existing conditions and help to further explain the need for the grant and the priority of the proposed planning project
with respect to community need. Please ensure
that graphics include a text description to provide
context.

Safety Data
Statistical data such as pedestrian-vehicle injuries/crashes or fatalities resulting from lack of safe infrastructure, or other road conditions that contribute to possible injuries. This information may be obtained from police reports, transit agencies, National Highway Traffic Administration, or the Governor’s Highway Safety Association.

Travel Mode Data
Data on mode share, commute patterns, accessibility for low-income and under-resourced populations, access to job centers, or other data to show the need and potential for mode shift to non-auto transportation modes.

Other Data
As applicable, to indicate the need and potential for reducing VMT and GHG, where available.

The following documents
are not required, but
enhance the overall
application and typically
result in a more
competitive application
during the evaluation
process:
· Letters of Support
· Graphics
· Safety Data
· Travel Mode Data
· Other Data
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 47

8. APPLICATION REVIEW PROCESS
Two-Tiered Application Review Process
This chapter provides a brief overview of the grant application review process. Grant application evaluation is a two-tiered process that consists of:
· Caltrans District Review and Evaluation
· Caltrans Headquarters (HQ) Interagency Review Committees Evaluation Caltrans district staff conducts the first-level review of all applications for content, submission of proper documentation, overall relationship to regional and local planning efforts, and documents their evaluations. Caltrans district staff scores, prioritizes, and recommends the most highly ranked Sustainable Communities and all Strategic Partnerships applications for the next level of review with the Interagency Review Committees. Grant applications from Native American Tribal Governments, Transit Agencies, and proposed projects spanning multiple Caltrans districts or projects having a statewide significance, may also move on directly from Caltrans districts to HQ for review.

The HQ Interagency Review Committees conduct
the second-level review and comprise staff from
Caltrans HQ, the Federal Highway Administration, the Federal Transit Administration, the California Department of Housing and Community Development, the California Department of Public Health, the Governor’s Office of Planning and Research, the Strategic Growth Council, and the California Air Resources. Caltrans HQ also coordinates with internal specialists, depending on the grant application subject matter, to provide high-level reviews of the proposed project to avoid funding duplicative efforts or efforts that are not supportive of State planning efforts. The committees for each grant category convene to develop funding recommendations that are approved by every level of Caltrans management and the California State Transportation Agency.

Application Evaluation/Scoring Process
Grant applications that address every aspect of the grant specific objectives will score higher overall. Caltrans has diverse applicants and project types, which makes it difficult to use a one-size fits all scoring rubric that would not unintentionally put some applicant/project types at a disadvantage. Therefore,
applications will be scored based on how well they are able to describe the project, justify need, incorporate the grant specific objectives, and develop a Scope of Work and Cost and Schedule, all in accordance with this grant guide, samples and checklists provided, as applicable and appropriate for the applicant and project type. Once the grant review committees evaluate, rank, and
select the best applications for grant funding, final
recommendations are presented to Caltrans management and California State Transportation Agency for approval.

Past Performance Award Considerations
Previous Caltrans transportation planning grantee performance will be considered during the evaluation process. Applicants with a history of inadequate performance and/or unresolved past grant performance issues may be at a competitive disadvantage in the application review process. Past performance issues could include the following:
· Poor grant project management
· Lack of communication/coordination with Caltrans
· Failure to achieve grant project milestones

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 48
· Untimely invoice submittals
· Excessive balances and consistently relinquish transportation funds administered by Caltrans Planning
· Unresolved audit issues or findings
· Overall poor quality of the final grant product
· Failure to satisfy the required State and federal planning requirements including submittal and administration of OWPs, RTPs, and Transportation Improvement Programs If an agency does not demonstrate adequate performance and timely use of funds, Caltrans may take appropriate actions, which can include denial of extenuating circumstance time extension requests and termination of the grant.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 49

9. APPLICATION AWARD PROCESS
Award and Non-Award
Successful grant applicants will receive an award letter via email. A list of awarded and non- awarded grants will be posted to the Caltrans Sustainable Transportation Planning Grant Program website.

Caltrans Sustainable Transportation Planning Grant Program Website:
https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/regional- and-community-planning/sustainable-transportation-planning-grants Conditional Award Teleconferences
Each grantee will receive a Conditional Award Letter that outlines the grant project cost, important expiration and final invoice dates.

Caltrans district staff will schedule individual teleconferences to provide the specific and general conditions of grant acceptance that are necessary to accept grant funding, including any revisions to the grant application, Scope of Work and Cost and Schedule. Conditions may include revisions to the project Scope of Work to bolster public participation, consider land use and housing, and to coordinate with local housing and community development departments and health departments. Awardees are required to submit all supporting materials and a signed agreement or risk forfeiting the grant award.

Non-Award Teleconferences
Unsuccessful grant applicants are encouraged to request a debriefing from Caltrans. Applicants typically receive specific comments from the District/Interagency Review Committee on how to improve applications to re-apply in a future grant cycle. If the application advanced to the second-level review, HQ provides the Interagency Review Committee score, as well as how close the application was relative to the cut-off score for available grant funding. Applicants sometimes apply two or three times before they are successful due to the competitiveness of the grant program.

Contracting with Caltrans
All awarded grant
funds must be under an executed agreement with Caltrans during the State FY 2025-26. The project start date depends on the method of contracting with Caltrans.

MPOs and RTPAs
All MPOs/RTPAs with a current Master Fund Transfer Agreement (MFTA) must have the entire grant award and local match programmed in the
FY 2025-26 OWP within 90-days of receiving the signed
FY 2024-25 reconciliation letter. Due to the competitiveness of this grant program, failure to program funds may result in forfeiture of grant funds. MPOs/RTPAs should include a place-holder Work Element in the Draft FY 2025-26 OWP and satisfy specific grant conditions before the first FY 2025-26 OWP amendment. MPO/RTPAs can anticipate starting their projects in November 2025, after the OWP amendment is processed and Caltrans issues a formal Notice to Proceed.

Non-MPOs/RTPAs
Grantees that do not have a current MFTA with ORCP (i.e., cities, counties, transit agencies, Native American Tribal Governments), Caltrans will contract directly with the primary grantees through the Restricted Grant Agreement (RGA) process. For grantees that undergo the RGA contracting

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 50
process, work may begin as early as November 2025, assuming the grantee has received a fully executed contract and Caltrans district staff send a formal Notice to Proceed which allows grantees to begin work.

Estimated Project Start/Expiration Dates
It is important for applicants to reflect the estimated project start date in the Scope of Work and Cost and Schedule. Project Timeline constraints for both methods of contracting with Caltrans are provided below. Grantees must consider these dates when developing the Scope of Work and Cost and Schedule:

Master Fund Transfer Agreement Project Timeline (MPOs/RTPAs Only) November 2025 · Anticipated start date
June 30, 2028
· Grant project end/expiration date
· Reimbursable work must be completed
· Grant extensions are only allowed for extenuating circumstances and may require a formal Overall Work Program (OWP) amendment
August 29, 2028
· All Final Request for Reimbursements for must be submitted no later than 60 days after the end of the fiscal year to coincide with the submission of the OWP Final Expenditure Report.

Restricted Grant Agreement Project Timeline (Non-MPO/RTPAs) November 2025 · Anticipated start date
June 30, 2028
· Grant project end/expiration date
· Reimbursable work must be completed
· Grant extensions are only allowed for extenuating circumstances and require a formal amendment.

August 29, 2028
· Final Request for Reimbursements and final products must be submitted to Caltrans for approval and reimbursement. This allows Caltrans sufficient time to comply with the State Controller’s Office payment requirements.

Native American Tribal Governments
Native American Tribal Governments have the following options for contracting with Caltrans:
(1) Contracting with Tribes Directly – The authority Caltrans uses to contract with tribes directly comes from California Streets and Highways Code section 94. Caltrans no longer requires tribes to provide a limited waiver of sovereign immunity with an RGA unless requested by a tribe. The RGA boilerplate template for Native American Tribal Governments is available upon request. (2) Partnering with a Regional Agency – Another mechanism for contracting with Caltrans is to collaborate with an MPO or RTPA with a current MFTA. Caltrans can pass through grant funding to tribes for planning projects where options or time are limited. This option uses the three-part contract, MFTA/OWP/OWPA, and is usually the quickest option to allow planning projects to get started.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 51
(3) Transferring Funds Pursuant to 23 U.S.C. 202(a)(9) – Section 202(a)(9) of title 23, United States Code encourages cooperation between States and Tribes by allowing any funds received from a State, county, or local government to be credited to appropriations available for the Tribal Transportation Program (TTP). One potential source of such funding is funds apportioned or allocated to a State under title 23. Section 104(f)(3) allows the Secretary of Transportation to, at the request of a State, transfer among States, or to the FHWA, funds that have been so apportioned or allocated. This provision, used in conjunction with the authority under 23 U.S.C. 209(a)(9), allows State funds to be transferred to FHWA, which in turn would provide the funds to the specified Tribe.

For
more information visit the FHWA website.22
Caltrans has successfully used the federal Section 202(a)(9) process to transfer Sustainable Communities grant funds to a Native American Tribal Government. In order to use this transfer process, an agreement would need to be in place with the FHWA or the Bureau of Indian Affairs, the Tribe, and the State that clearly identifies the project and the roles and responsibilities of all parties. Each interagency fund transfer includes 1) a fund transfer template
and 2) an addendum lining out the specifics of the terms. This option requires involvement and approval by Caltrans Legal and the funds must be used for the intended purpose of the awarded Sustainable Communities grant.
22 Federal Highway Administration, Office of Tribal Transportation , 2020 https://flh.fhwa.dot.gov/programs/ttp/documents/Funds-Transfer-Procedures-Pursuant-to-23- U.S.C.202%28a%29%289%29.pdf
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APPENDICES
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 53
APPENDIX A. GUIDANCE, TOOLS, AND RESOURCES FOR

PREPARING A GRANT APPLICATION
Grant Program Considerations
The Grant Application Guide incorporates guidance from many sources. The following links are provided to assist applicants in preparing a competitive grant application consistent with the grant program, specific objectives, and the Grant Program Considerations:
· Caltrans Strategic Plan
· California Transportation Plan (CTP) 2050
· California Strategic Highway Safety Plan (SHSP) 2020-2024 · Modal Plans that Support the CTP
o Interregional Transportation Strategic Plan
o California Freight Mobility Plan
o California State Rail Plan
o California State Bicycle and Pedestrian Plan
o Statewide Transit Strategic Plan
o California Aviation System Plan
· Title VI and Environmental Justice
· Climate Action Plan for Transportation Infrastructure · California Climate Adaptation Strategy
· Master Plan for Aging
Caltrans Strategic Plan
The purpose of the Strategic Plan is to be a roadmap of Caltrans’ role, expectations, and operations as we meet the challenges of modernizing Caltrans into a world-class Department of Transportation. The tools we use to implement this Plan are performance management, transparency, accountability, sustainability, and innovation. The Plan serves a number of functions:
· Provides clear direction for meeting statewide objectives; · Creates and deepens strategic partnerships; and
· Provides performance measures that monitor success
https://dot.ca.gov/-/media/dot-media/programs/risk-strategic-management/documents/sp-2020- 16p-web-a11y.pdf
California Transportation Plan 2050
The CTP 2050 is the State’s statutorily fiscally unconstrained long-range transportation roadmap for positive change that:
· Provides a unifying and foundational policy framework for making effective, transparent, and transformational transportation decisions in California · Addresses the varied transportation needs of urban, suburban, rural, and tribal communities · Emphasizes implementation and identifies a timeline, roles, and responsibilities for each plan recommendation.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 54
The CTP does not contain projects, but policies and strategies required to close the gap between what the RTPs aim to achieve and how much more is required to meet 2050 goals. Competitive applications will discuss how proposed projects will assist in achieving the CTP 2050. https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/ctp-2050- v3-a11y.pdf
Strategic Highway Safety Plan
California's Strategic Highway Safety Plan (SHSP) is a statewide, comprehensive, data-driven effort to reduce fatalities and serious injuries on public roads. Started in 2005, the SHSP is updated regularly to ensure continued progress and meet changing safety needs. Currently, over 300 safety stakeholders from 80 public and private agencies and organizations work together to implement the plan under the direction of the SHSP Executive Leadership and a 13-member Steering Committee. The
SHSP includes behavioral, infrastructure, and technology strategies addressing the "4Es" of safety: engineering, enforcement, education, and emergency services. https://dot.ca.gov/programs/safety-programs/shsp
Modal Plans that Support the California Transportation Plan The CTP is the umbrella plan that informs and pulls together the State’s long-range modal plans, described below, to envision the future system:

Interregional Transportation Strategic Plan (ITSP)
A Caltrans document that provides guidance for the identification and prioritization of interregional transportation improvements to be funded in the Interregional Transportation Improvement Program (ITIP). The ITSP analyzes the entire interregional transportation system including highways and rail. While the ITSP informs the ITIP, the purpose of the plan is to be a guiding document for all investment in the interregional transportation system regardless of funding source. https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/corridor- and-system-planning
California Freight Mobility Plan
A statewide, long-range plan for California's freight transportation system. Developed in collaboration with our partners, the California Freight Mobility Plan (CFMP) was developed by the California State Transportation Agency (CalSTA) and Caltrans in consultation with the California Freight Advisory Committee.
https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/strategic- freight-planning
California State Rail Plan
A statewide plan that provides a framework for planning and implementing California’s rail network for the next 20 years and beyond. The Rail Plan is a strategic plan with operating and capital investment strategies that will lead to a coordinated, statewide travel system. https://dot.ca.gov/programs/rail-and-mass-transportation/california-state-rail-plan Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 55
California State Bicycle and Pedestrian Plan
“Toward an Active California,” California’s first statewide plan that lays out the policies and actions that Caltrans and its partner agencies will take to achieve the Department’s ambitious statewide goals to double walking and triple bicycling trips by 2020. https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/f0020350- activeca-final-plan-2017-05-18-a11y.pdf
Statewide Transit Strategic Plan
The plan allows the State to prepare for the expanding landscape of personal mobility choices and the integration of urban and regional transit systems with the California High Speed Rail project.

The Statewide Transit Strategic Plan highlights a sustainable transportation system that supports the outcomes of the CTP, the California State Rail Plan, and the California State Bicycle and Pedestrian Plan.
https://dot.ca.gov/programs/rail-and-mass-transportation/statewide-transit-strategic-plan California Aviation System Plan
A multi-element plan prepared by Caltrans with the goal of developing and preserving the system of publicly owned, public-use airports and to promote the development of a safe, efficient, and sustainable air transportation system that meets the integrated mobility needs of the State of California.
https://dot.ca.gov/programs/aeronautics/california-aviation-system-plan Title VI and Environmental Justice
Title VI of the U.S. Civil Rights Act prohibits discrimination on the basis of race, color, or national origin in programs or activities receiving federal financial assistance. A similar prohibition applies to recipients of State funds under California Government Code section 11135, which prohibits discrimination on the basis of race, color or national origin, as well as ethnic group identification, religion, age, sex, sexual orientation, genetic information, or disability. Title VI specifically provides the following:

No person in the United States shall, on the ground of race, color, national origin, religion, sex, age, or disability be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving financial ass istance from the Federal government.
https://dot.ca.gov/programs/civil-rights/title-vi
The following tools are provided to assist grant applicants with integrating environmental justice in their proposed activities:

EJSCREEN: Environmental Justice Screening and Mapping Tool EJSCREEN, developed by the United States Environmental Protection Agency, geospatially displays public health and environmental data and allows users to compare local data against state and national averages.
https://www.epa.gov/ejscreen
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Environmental Justice Agency Assessment 2020
The California Environmental Justice Alliance completed the fifth Environmental Justice Agency Assessment, the only one in the nation to formally examine how state agencies develop, implement, and monitor environmentally related policies that particularly impact low-income communities and communities of color. The assessments in this report are made in the spirit of holding state agencies and elected officials accountable to the public, and to provide guidance on how they can make their work more equitable.
https://caleja.org/wp-content/uploads/2021/07/CEJA-Agency-Assessment-062021-FINAL-WEB.pdf Caltrans Transportation Equity Index (EQI)
The EQI is a spatial screening tool designed to identify transportation-based priority populations at the Census block level. The EQI integrates transportation and socioeconomic indicators into three screens. All screens reflect low-income status and tribal land status.

The EQI screens include:
· Transportation-Based Priority Populations: Communities that are most burdened by the transportation system and receive the fewest benefits.
· Traffic Exposure: Communities that are the most burdened through high exposure to traffic and crashes.
· Access to Destinations: Communities that have the greatest gaps in multimodal access to destinations.
https://dot.ca.gov/programs/esta/race-equity/eqi
Climate Action Plan for Transportation Infrastructure
The Climate Action Plan for Transportation Infrastructure (CAPTI) details how the State recommends investing billions of discretionary transportation dollars annually to aggressively combat and adapt to climate change while supporting public health, safety and equity. CAPTI builds on executive orders signed by Governor Gavin Newsom in 2019 and 2020 targeted at reducing GHG emissions in transportation, which account for more than 40 percent of all emissions, to reach the State's ambitious climate goals.
https://calsta.ca.gov/-/media/calsta-media/documents/capti-july-2021-a11y.pdf California Climate Adaptation Strategy
The California Climate Adaptation Strategy, mandated by Assembly Bill 1482 (Gordon, 2015), links the State’s existing and planned climate adaptation efforts, showing how they fit together to achieve California’s six climate resilience priorities. The Strategy is organized around outcome- based priorities, enabling a coordinated, integrated approach to building climate resilience. The Strategy shows how the State’s efforts fit together to deliver on six priorities for climate resilience action in California: Strengthen Protections for Climate Vulnerable Communities; Bolster Public Health and Safety to Protect Against Increasing Climate Risks; Make Decisions Based on the Best Available Climate Science; Build a Climate Resilient Economy; Accelerate Nature-Based Climate Solutions and Strengthen Climate Resilience of Natural Systems; Partner and Collaborate to Leverage Resources.
https://www.climateresilience.ca.gov/
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Master Plan for Aging
The Master Plan for Aging is a blueprint for aging across the lifespan and outlines five goals and twenty-three strategies to build a California for All Ages by 2030. It also includes a Data Dashboard for Aging to measure progress and a Local Playbook to drive partnerships that will assist in meeting the goals of the Master Plan.
https://mpa.aging.ca.gov/
Resources to Advance Grant Specific Objectives
Applicants must demonstrate how the project fits every aspect of the Grant Specific Objective, as appropriate for the applicant and project type. The following resources are provided in this section:
· Multimodal System Planning
· Advance Transportation Related GHG Reduction Project Types/Strategies · Addressing the Needs of Under-Resourced Communities
· Public Health Resources
· Active Community Engagement
· Integrated Housing, Land Use, and Transportation Planning · Promote the Region’s RTP SCS/APS, State Planning Priorities, and Climate Adaptation Goals · Climate Ready Transportation and Climate Adaptation Planning Multimodal System Planning
The following guidance documents can be used in the development of proposed corridor plans/studies, freight plans/studies, and other multimodal system planning documents.

Comprehensive Multimodal Corridor Plan Guidelines
The California Transportation Commission developed the Comprehensive Multimodal Corridor Plan Guidelines (plan guidelines) to provide guidance to eligible Solutions for Congested Corridors Program applicants regarding the statutory requirements for comprehensive corridor plans utilized by agencies
to apply for funding through the Congested Corridors Program. Applicants proposing to develop a comprehensive corridor plan are encouraged to review the plan guidelines to ensure their application and final product would align with and compete well for the Solutions for Congested Corridors Program.
https://catc.ca.gov/programs/sb1/solutions-for-congested-corridors-program/comprehensive- multimodal-corridor-plan-guidelines
Caltrans Corridor Planning Process Guide
The Caltrans Division of Transportation Planning prepared the Corridor Planning Process Guide (Guide) for
use in preparing corridor planning documents. This Guide establishes a comprehensive planning approach through desired protocols and procedures to identify and implement multimodal transportation needs. It is neither intended as nor does it establish, a legal standard for these functions.
https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/system- planning/systemplanning/corridor-planning-process-guide-april-2022-a11y.pdf Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 58
Planning for Operations Strategic Work Plan
The Planning for Operations Strategic Work Plan is a statewide framework for multimodal system management planning, aims to identify the specific steps needed to implement multimodal system management planning at Caltrans and prioritize implementation actions. https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/system- planning/systemplanning/caltrans-p4ops-strategic-work-plan-2018-a11y.pdf Caltrans Climate Change Emphasis Area Guide for Corridor Planning Consideration of climate change adaptation and mitigation must be included in the corridor planning process. This guidance was developed to describe how to address climate risk in the context of the Caltrans Corridor Planning Process Guide’s 8 steps process. https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/cc-ea- guide-for-corridor-planning-march2022-a11y.pdf
Climate Adaptation Strategies for Transportation Infrastructure This educational-only resource describes the types of hazards and/or threats represented by different climate stressors and lists the types of adaptation actions or strategies that could be considered to minimize climate change impacts.
https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/office-of- smart-mobility-and-climate-change/fy23-24-adaptation-strategies-transportation-infrastructure- 05102024v2-a11y.pdf
Active Transportation Emphasis Area Guidance
Active Transportation is one of several distinct emphasis areas to be considered in corridor plan analysis. Caltrans Active Transportation guidance has one goal – to provide corridor planners with a framework to assess and analyze the variety of Active Transportation issues that can be addressed in Corridor Plans. As the “Eight Step” process will be required to develop Corridor Plans, this Active Transportation Emphasis Area (EA) Guidance is based upon those eight steps. https://dot.ca.gov/-/media/dot-media/programs/transportation-planning/documents/active- transportation-complete-streets/20220131active-transportation-emphasis-area-guidance-final- version-v7a11y.pdf
Advance Transportation Related GHG Reduction Project Types/Strategies CARB 2022 Scoping Plan, Appendix E
The California Air Resources Board (CARB) adopted the 2022 Scoping Plan for Achieving Carbon Neutrality, to guide how the State develops communities, preserves and protects its landscapes, and ensures that all Californians have equitable access to housing, health care, jobs, and opportunity. Competitive Sustainable Communities grant applications will demonstrate a linkage to this land use vision.

The 2022 Scoping Plan (Appendix E, Sustainable and Equitable Communities) also includes information on the need for reducing VMT and outlines a list of potential additional strategies that the State and other responsible parties could pursue to help achieve further VMT reduction, support local and regional actions already underway, and advance multiple additional goals.

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While this document is intended to guide State-level actions, many of the strategies can also be implemented at a regional and local level. Sustainable Communities grant applicants are encouraged to explore these strategies and apply them, as appropriate, to proposed planning projects.

CARB 2022 Scoping Plan (all updates and appendices):
https://ww2.arb.ca.gov/our-work/programs/ab-32-climate-change-scoping-plan/2022-scoping- plan-documents
CARB 2022 Scoping Plan, Appendix E:
https://ww2.arb.ca.gov/sites/default/files/2022-11/2022-sp-appendix-e-sustainable-and-equitable- communities.pdf
For current CARB activities and future updates on Scoping Plan efforts, visit:
https://ww2.arb.ca.gov/our-work/programs/ab-32-climate-change-scoping-plan Senate Bill 375
The Sustainable Communities and Climate Protection Act (SB 375) was signed in 2008. It supports the State's climate goals by helping reduce GHG emissions through coordinated transportation, housing, and land use planning.

Under the Sustainable Communities Act, CARB sets regional targets for GHG emissions reductions from passenger vehicle use. CARB set targets for 2020 and 2035 for each of the 18 MPO regions.

Each of the MPO regions must prepare an SCS/APS, as an integral part of its RTP, that contains land use, housing, and transportation strategies that, if implemented, would allow the region to meet CARB’s targets. Once the SCS/APS is adopted by the MPO, CARB must review the adopted SCS/APS to accept or reject the MPO's determination that the SCS/APS, if implemented, would meet the targets.

Sustainable Communities grant
applicants, where applicable, should explore their regions SCS/APS, and apply them, as appropriate, to proposed planning projects.

CARB SCS/APS Evaluations: https://ww2.arb.ca.gov/our-work/programs/sustainable-communities- program/regional-plans-evaluations
SB 375: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200720080SB375 Senate Bill 743
Senate Bill (SB) 743 was signed in 2013, with the intent to “more appropriately balance the needs of congestion management with statewide goals related to infill development, promotion of public health through active transportation, and reduction of GHG emissions.” As such, automobile delay or traffic congestion, as measured in level of service, is not considered a significant environmental effect under the California Environmental Quality Act (CEQA). Changes to the CEQA Guidelines were certified in December 2018 and established Vehicle Miles Traveled (VMT) as the most appropriate measure of transportation-related environmental impact. A key element of transportation analysis under the new guidance is forecasting induced vehicular travel, or the change in VMT attributable to a project. Since July 1, 2020, statewide implementation of VMT analysis in CEQA documents is required.

Applicants who wish to pursue model improvements or develop VMT Mitigation Programs using Sustainable Communities Competitive Technical or Formula grants are encouraged to review available materials relating to forecasting induced tr
avel or strategies to mitigate and reduce VMT,
including those found on the Caltrans SB 743 implementation website. Refer to the Caltrans Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 60
Transportation Analysis Framework, the Caltrans Transportation Analysis Under CEQA, and other resources linked on the website for more information.

Example project types include:
· Integration of land use modeling into travel demand models, improving long-term induced travel modeling capability
· Incorporation of impacts to trip-making behaviors as a result of network improvements · Improved congestion feed-back into existing models, or pre- and post-processing procedures · Induced travel case studies
· VMT-reducing strategies and programs intended to mitigate for induced travel impacts SB 743: http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SB743 Caltrans SB 743 Implementation Resources: https://dot.ca.gov/programs/esta/sb-743/resources Addressing the Needs of Under-Resourced Communities
Caltrans encourages eligible applicants to apply for Sustainable Communities Competitive Grants to address transportation needs and deficiencies in under-resourced communities. Supporting planning projects that benefit a under-resourced community is a priority; therefore, a minimum threshold of 50 percent of Sustainable Communities Competitive Grants has been identified for projects that benefit under-resourced communities, which includes Native American Tribal Governments and rural communities (for transportation planning purposes, rural is defined as all areas of the state that are not included in urbanized areas of 50,000 in population or greater; see map in Appendix C which indicates rural areas). In sum, acceptable under-resourced communities definitions include:
• Rural communities of 50,000 or less and outside of urbanized areas • Native American Tribal Governments
• Regionally/locally defined under-resourced communities • At or below 80% Assembly Bill 1550 (Gomez, Chapter 369, Statutes of 2016) • At or above 75% California Department of Education,
Free or Reduced Priced Meals Data
• At or above 75% CalEnviroScreen Version 4.0
• At or below 25% California Healthy Places Index (HPI) Grant applicants are required to provide a justification in their grant application for how the project area meets the definition of an under-resourced community and a
description of how the project will benefit these
communities, as well as how these communities will be
engaged throughout the project.

The following tools, related to income level, environmental burden, and health inequities, are intended to help
applicants identify the most vulnerable places that are facing disproportionate rates of economic, environmental, and health burdens. These tools must be cited in the grant application, as well as how the project area is compared to the statewide thresholds that are established in each tool.

IMPORTANT
INFORMATION:

Grant applicants are required
to provide a justification in their
grant application for how the
project area meets the
definition of under-resourced
communities and a description
of how the project will benefit
these communities, as well as
how these communities will be
engaged throughout the
project.

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Regionally and/or Locally Defined Under-Resourced Communities Regionally and/or locally defined under-resourced communities may be acceptable as long as statewide thresholds for the tools below are not circumvented. Applicants that use a regional or local definition should also provide data for their project, using the statewide tools below. Caltrans may not accept the regional/local definition if it is inadequately supported in the justification section of the grant application.

Assembly Bill (AB) 1550 (Gomez, Chapter 369, Statutes of 2016) AB 1550 further enhanced the Greenhouse Gas Reduction Fund statutory requirements to invest a minimum of twenty-five percent in under-resourced communities and another ten percent in low- income households or communities. AB 1550 provides definitions for low-income households and low-income communities that may be considered in application development:
(1) “Low-income households” are those with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093.
(2) “Low-income communities” are census tracts with median household incomes at or below 80 percent of the statewide median income or with median household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093.

AB 1550: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB1550 California Department of Education, Free or Reduced Priced Meals (FRMP) Data The California Department of Education maintains the complete data files pertaining to students who are eligible for FRMP. FRPM data are collected annually and can also be used to assist Sustainable Communities applicants to define their under-resourced community. Per SB 99 (Chapter 359, Statutes of 2013), the State’s Active Transportation Program disadvantaged community’s definition includes low-income schools, where at least 75 percent of students are eligible to receive free or reduced meals under the National School Lunch Program.

FRMP data files: https://www.cde.ca.gov/ds/sd/sd/filessp.asp SB 99: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SB99 CalEnviroScreen Version 4.0
CalEnviroScreen is a screening methodology
that can be used to help identify California
communities that are disproportionately burdened by multiple sources of pollution.

CalEnviroScreen uses environmental, health, and socioeconomic information to produce a numerical score for each census tract in the state. For purposes of SB 535 (De León, Statutes of 2012), disadvantaged communities are defined as the top 25 percent scoring areas from CalEnviroScreen along with other areas with high amounts of pollution and vulnerable populations. https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-40 California Healthy Places Index (HPI)
HPI is an interactive data and mapping tool that provides a detailed snapshot of the social determinants of health across California, mapped
down to the Census tract level. HPI provides
comparison rankings of Census tracts statewide and an accompanying policy action guide.

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Therefore, the HPI can be a useful tool in prioritizing areas with high levels of social and economic
disadvantage for funding, policy, and planning
interventions. HPI was developed by the Public
Health Alliance of Southern California in
collaboration with health departments and data
experts across the state. Because HPI focuses on
the social and environmental conditions that
contribute to health, policy makers and local
agencies can use it to identify actionable policies
that would improve health in their community, such
as improving transportation access, housing
affordability and quality, or access to parks and
open space, HPI also incorporates “decision
support layers” that can be overlaid to show
additional indicators such as the California
Department of Public Health’s (CDPH) climate
change and health vulnerability indicators (see
Appendix A,
Public Health Resources, CDPH Climate Change and Health Vulnerability Indicators for more information.).
https://healthyplacesindex.org/
Understanding the HPI Score
HPI includes a composite score for each Census tract in the state. The higher the score, the healthier the community conditions. Each Census tract’s score is converted to a percentile, which allows it to be compared to other California Census tracts. For example, an HPI percentile of 79 indicates that a Census tract has healthier community conditions than 79 percent of the Census tracts in California. HPI percentile rankings are further broken into quartiles, with percentiles below 25 typically used to indicate disadvantaged communities. Thus, lower scores can be used to demonstrate a community, or project/service area, is under-resourced for purposes of qualifying for the minimum threshold of 50 percent for under-resourced communities in this program.

In addition to the composite score and percentile ranking, applicants can review the individual domain scores or indicators themselves and explain how their project will improve one or more of these public health challenges. The numeric value and percentile ranking for these component indicators can be found either by using the live map or by accessing the data directly. See the following table for HPI examples.

These HPI tools can be accessed at:

Live Map: https://map.healthyplacesindex.org/
HPI Learning Center: https://www.healthyplacesindex.org/learning-center

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HPI Examples
Indicator HDI Percentile How will the project improve this health challenge? Policy Action Area (Composite) Scores
Neighborhood Percentile ranking of
all neighborhood-
related indicators
Demonstrate how this plan will address health and
transportation challenges related to neighborhood
indicators (park access, supermarket access, retail
density, alcohol availability and tree canopy)
Transportation Percentile ranking of
all transportation
indicators
Demonstrate how this plan will address health and
transportation challenges related automobile access
and active commuting
Individual Indicators
Automobile Access
Active Commuting
Park Access
XX percent
XX percent
XX percent
Describe how plan will increase and improve
transportation access to vital destinations, goods and
services for those without auto access.

Describe how the plan will improve transportation
options for those without a car, specifically regarding active commuting by foot, bike, and transit in the
project area.

Demonstrate how project will improve transportation
access to parks/ open space.

For more information on HPI, including how to calculate a score for your project area and suggested project types for improving public health, visit https://healthyplacesindex.org/.

Senate Bill 1000 (Leyva, Chapter 587, Statutes of 2016) SB 1000 requires local jurisdictions to develop environmental justice elements in their next General Plan updates. Specifically, the environmental justice element, or the environmental justice goals, policies, and objectives in other elements, must be adopted or reviewed upon the adoption or next revision of 2 or more elements concurrently on or after January 1, 2018. Grant applicants are encouraged to describe efforts to comply with this new general plan requirement. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB1000 California Environmental Justice Alliance SB 1000 Toolkit The California Environmental Justice Alliance SB 1000 Toolkit may help applicants describe their efforts to include the Environmental Justice element in their general plan updates. https://caleja.org/2017/09/sb-1000-toolkit-release/
Governor’s Office of Planning and Research (OPR) General Plan Guidelines Senate Bill 1000 Technical Advisory
The OPR
General Plan Guidelines for Senate Bill 1000 provides guidance for determining whether an Environmental Justice element or equivalent is required in a local jurisdiction, including identifying the location of disadvantaged communities (as defined in Gov. Code, § 65302, Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 64
subdivision (h)(4)(A))23 as well as the nature of their environmental burdens, health risks, and needs.

It also provides guidance for community engagement when addressing Environmental Justice disadvantaged communities; and goals, policies, and programs that address the unique and compounded health risks in disadvantaged communities and prioritize improvements and programs that meet the needs of disadvantaged communities. https://opr.ca.gov/docs/20200706-GPG_Chapter_4_EJ.pdf
Displacement/Gentrification
Transportation improvements, especially new rail lines and stations to low-income communities, can increase access to
opportunities. But they can also result in much higher property values and an increase in the cost of owning and renting property, inadvertently displacing existing residents and businesses. Being forced to leave a home is a stressful, costly and traumatic life event, especially when affordable housing is so limited. There is a growing recognition of tools and strategies that can be implemented alongside community investments to reduce displacement.

Grant applicants are encouraged to reference the 2024 RTP Guidelines, Appendices E and G, for best practices in addressing displacement of low income and under-resourced communities.

Transformative Climate Communities Program
The State’s Transformative Climate Communities Program provides a framework for applicants to avoid displacement and may assist Sustainable Communities grant applicants in addressing displacement.
https://sgc.ca.gov/meetings/council/2022/docs/20220428- Item5a_TCC_Guidelines_Round%204_Technical%20Amendment_Clean.pdf Implementing Senate Bill 350 (De Leon, Chapter 547, Statues of 2015) and Community Needs Assessments
Caltrans supports implementation of SB 350, the Clean Energy and Pollution Reduction Act of 2015, which establishes the State priority to reduce GHG emissions through the promotion of various clean energy policies, including widespread transportation electrification, for the benefit of all Californians. Transforming the State’s transportation sector to support widespread electrification requires increasing access for all Californians, including low-income residents and those living in under-resourced communities, across a broad spectrum of clean transportation and mobility
options to address community specific transportation needs. Caltrans is leading efforts to identify low-income residents and under-resourced communities’ transportation and mobility needs through ongoing and potential future statewide planning processes.

In support of this State goal, Sustainable Communities applicants are encouraged to conduct local Community Needs Assessments of low-income resident and under-resourced communities’ transportation and mobility needs to ensure feedback is incorporated in transportation planning.

Community Needs Assessments include an evaluation of the following categories of transportation barriers and opportunities at the community level: (1) Access and Reliability; (2) Convenience; (3) Safety; (4) Demographic Characteristics and Community Setting; and, (5) Planning, Infrastructure and Investments.
23 https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=1.&title=

7.&part=&chapter=3.&article=5.

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SB 350: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB350 Final Guidance Document, Low-Income Barriers Study, Part B: Overcoming Barriers to Clean Transportation Access for Low-Income Residents In February 2018, the California Air Resources Board released the Final Guidance Document, Low- Income Barriers Study, Part B: Overcoming Barriers to Clean Transportation Access for Low-Income Residents. This Guidance Document provides background for SB 350 and may assist Sustainable Communities applicants with developing Community Needs Assessments as a standalone project or as part of a proposed project.
https://ww2.arb.ca.gov/resources/documents/carb-barriers-report-final-guidance-document Public Health Resources
The following tools can be used to further describe the community’s climate change and health vulnerability, and other needs, including helping to create qualitative descriptions of existing community health risks and vulnerabilities and how the proposal will address them.

Community Health Needs Assessments
Community Health Needs Assessments (CHNA) and implementation strategies are regularly conducted by county public health departments and are newly required of tax-exempt hospitals as a result of the Patient Protection and Affordable Care Act. These assessments and strategies create an important opportunity to improve the health of communities. They ensure that hospitals have the information they need to provide community benefits that meet the needs of their communities. They also provide an opportunity to improve coordination of hospital community benefits with other efforts to improve community health. By federal statute, the CHNAs must take into account input from “persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health.” To avoid duplicative efforts, grant applicants are encouraged to contact and coordinate with local health departments/non-profit hospitals to take advantage of information that may have been collected as part of CHNA efforts, such as low-income resident and under-resourced communities’ transportation and mobility needs. It is important for grant applicants to connect with these public health entities for both partnership building on transportation needs for under-resourced communities, but also to not over-burden those communities with multiple assessments or efforts asking similar questions.

CDPH Climate Change and Health Vulnerability Indicators (CCHVIs) CDPH developed the Climate Change and Health Vulnerability indicators, narratives, and data to provide local health departments and partners the tools to better understand the people and places in their jurisdictions that are more susceptible to adverse health impacts associated with climate change, specifically extreme heat, wildfire, sea level rise, drought, and poor air quality.

The assessment data can be used to screen and prioritize where to focus deeper analysis and plan for public health actions to increase resilience.

The CCHVIs can be viewed on “CCHVIz”, CDPH’s interactive data visualization platform:
https://discovery.cdph.ca.gov/ohe/CCHVIz/. The CCHVIs have also been incorporated into the HPI as decision support layers, to better integrate addressing health outcomes associated with climate change and various social determinants of health. See above for more information on the HPI.
https://www.cdph.ca.gov/Programs/OHE/Pages/CC-Health-Vulnerability-Indicators.aspx Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 66
CDPH Climate Change and Health Profile Reports (CHPRs)
The CDPH CHPRs are designed to help counties in California prepare for the health impacts related to climate change through adaptation planning. The reports present projections for county and regional climate impacts, the climate-related health risks, and local populations that could be vulnerable to climate effects. The information is based on available science compiled from previously published, State-sponsored research and plans. https://www.cdph.ca.gov/Programs/OHE/Pages/ClimateHealthProfileReports.aspx CDPH Healthy Communities Data and Indicators Project (HCI) The goal of the HCI is to enhance public health by providing a standardized set of statistical measures, data, and tools that a broad array of sectors can use for planning healthy communities and evaluating the impact of plans, projects, policy, and environmental changes on community health. The Healthy Community Framework identifies 20 key attributes (i.e., “aspirational goals”, such as “Safe, sustainable, and affordable transportation options” or “Access to affordable and safe opportunities for
physical activity”) of a healthy community through all stages of life, clustered in five broad categories (i.e., “domains”, such as “Meets the Basic Needs of All” or “Quality and Sustainability of Environment”). HCI data indicators, narratives, and visualizations are found here. https://www.cdph.ca.gov/Programs/OHE/Pages/HCI-Search.aspx Integrated Transport and Health Impact Model (ITHIM)
The California version of ITHIM is a planning tool that answers the question of "How much benefit or harm to human health can we expect by changing the mix of active and motorized travel across a county,
region, or the entire State of California?" ITHIM contrasts one travel pattern that serves as a reference with an alternative that has a different profile of fine particulate air pollution from vehicle exhaust, physical activity from walking and cycling, and injuries from traffic collisions. ITHIM calculates the change
in deaths, years of life shortening and disability, and costs due to these changes in air pollution, physical activity, and traffic injuries. Grant applicants are encouraged to reference and utilize ITHIM to assess the health impacts their projects and programs. https://skylab.cdph.ca.gov/HealthyMobilityOptionTool-ITHIM/ Health In All Policies (HiAP) Approach
The HiAP initiative is a collaborative approach designed to improve the health of Californians by incorporating health, equity, and sustainability considerations into policymaking across sectors. The approach recognizes that chronic illness, climate change, health inequities, and increasing health care costs are interrelated and influenced by policies, programs, and investments across sectors.

The initiative provides access to tools, resources and journal articles highlighting Health in All Policies approaches, techniques, and concepts from California and beyond. https://www.cdph.ca.gov/Programs/OHE/Pages/HIAP.aspx
Active Community Engagement
Sustainable Communities Competitive Grant applications must include an explanation of how local
residents and community-based organizations will be meaningfully engaged in developing the final product, especially those from under-resourced and low-income communities, and how the final product will address community-identified needs. Applicants are encouraged to implement, as applicable and appropriate the tips, best practices, and tools listed below:

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Community Engagement Best Practices
· Refer to the following case studies that meaningfully demonstrate the expectations of equitable community engagement:
o The community driven Carsharing and Mobility Hubs in Affordable Housing Pilots24 offer a strong example of equitable community engagement. The equity-based project incorporated community input from start to finish through community partnership building.
o The Mobility Equity Framework25 should be used to assess and compare multimodal transportation options and centers community needs and shifts decision making power to the public. For successful implementation examples, refer to: (1) California Air Resources Board (CARB) Clean Mobility Options Program26, (2) City of Portland, Oregon, Pricing Options for Equitable Mobility Project27, and North Carolina’s Transit Equity Campaign28.
· Refer to Greenlining Institute’s Six Standards for Equitable Investment29 to implement qualitative measures of equity. These standards feature a list of approaches, ranging from the minimum to transformative approach, depending on how much time, resources, and effort are generally required because equity approaches differ in each community context and conditions.
· Refer to Greenlining Institute’s Making Equity Real in Mobility30, a toolkit of clear strategies and best practices to put equity in action
· Clarify the type of engagement will be utilized, as seen in the Public Participation Spectrum31.

Agencies and communities need to understand where engagement level falls from the “inform” to “empower” model.
· Utilize a Participatory Budgeting (PB) planning process, as appropriate. PB is a democratic approach to public spending that meaningfully and deeply engages people in government and the community. During PB, community members democratically decide how to spend part
of a public budget, enabling them to make the fiscal decisions that affect their lives and the health of their communities.
· Seek existing community-based organizations or agencies that organize vulnerable populations, to be able to reach out and form collaborative relationships. 24 Carsharing and Mobility Hubs in Affordable Housing Pilots:
https://greenlining.org/publications/reports/2021/clean-mobility-transportation-equity-report/ 25 Mobility Equity Framework: https://greenlining.org/publications/2018/mobility-equity-framework/ 26 CARB Clean Mobility Options Program: https://cleanmobilityoptions.org/about/ 27 Portland, Oregon, Pricing Options for Equitable Mobility Project:
https://www.portland.gov/transportation/planning/pricing-options-equitable-mobility-poem 28 North Carolina Transit Equity Campaign: https://bikedurham.org/transit 29 Greenlining Institute’s Six Standards for Equitable Investment: https://greenlining.org/wp- content/uploads/2021/03/Clean-Mobility-Equity-A-Playbook-Greenlining-Report-2021.pdf 30 Greenlining Institute’s Making Equity Real in Mobility: https://greenlining.org/wp- content/uploads/2019/08/Toolkit_Making-Equity-Real-in-Mobility-Pilot-Projects_Final-1.pdf 31 Public Participation Spectrum:
https://sustainingcommunity.wordpress.com/2017/02/14/spectrum-of-public-participation/ Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 68
· Involve local health departments which can assist in reaching community-based organizations and under-resourced and vulnerable community members. · Collaborate with under-resourced, vulnerable, and tribal communities to design and implement programs, plans and policies. Robust engagement of under-resourced and vulnerable communities in significant agency decisions brings about better decisions through increased input from different perspectives, increases buy-in and acceptance of decisions and support for their implementation.
· Make opportunities for input accessible in terms of formats (pop-up workshops, temporary built-environment demonstrations, online, in public meetings, one on one, by mail, etc.), venues (at school and community events, community centers, libraries, transit hubs, etc.), hours (evening or weekend), and language (accessible to lay people and translated into the principal languages of the relevant communities, including accessible media such as caption videos).
· Develop a written collaboration agreement or memorandum of understanding that defines respective roles, expectations, desired outcomes,
and agreements for how to work together.
· Establish an advisory group of representatives of vulnerable communities, including community leaders and give them worthwhile roles to design the public engagement process, so that community capacity is built during the collaboration process. · Conduct targeted outreach to community groups representing special needs populations, under-resourced communities, and a variety of socio-economic groups through various methods.
· Use a variety of outreach methods to optimize participation, such as creating and marketing user-friendly survey websites for public feedback, conducting surveys in multiple languages to collect input on local citizens’ priorities, and carrying out meetings at accessible times and meeting locations (e.g., using community group buildings, hosting pop-up workshops at public venues, etc.).
· Have material available in multiple languages when requested. Have translator available during workshops, public meetings, and events.

Note: The applicant should increase efforts beyond basic public noticing and public hearings.

Options for demonstrating additional public outreach could include, but not limited to all the above.

Additional Public Engagement Best Practices and Strategies Applicants will need to consider how to conduct public outreach and engagement that allows for both in-person and virtual options. Below are some resources to help applicants evaluate and develop the best strategy for public engagement.
· Caltrans Planning Horizons, “Digital Public Engagement and Transportation: Getting It Right – Theory, Techniques and Best Practices.”: Digital engagement can greatly increase the reach of public education and involvement; many public agencies have been surprised by the positive results and substantial increase in participants. https://youtu.be/85t9ibR2U7Q
· The Great Pivot - Public Engagement in the Wake of COVID-19: Celia McAdam and Natalie Porter of AIM Consulting hosted a WTS seminar where they provided examples and strategies for public outreach, including diverse and under-resourced communities, during the COVID- 19 pandemic.
https://youtu.be/k2dPVqhIwvc
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· Digital Environmental Engagement Resource Catalogue: The California Natural Resources Agency and the California Environmental Protection Agency developed a resource catalogue of online sessions on community engagement and equity. This resource catalogue comes from the “Online Environmental Engagement: Building Our Skills Together” conference.

From June 2nd to 4th 2020, forty-nine panelists and approximately 1,500 registrants from California and across the nation gathered together online to discuss their successes, challenges and practical tips for online environmental engagement. https://resources.ca.gov/Outreach/Digital-Environmental-Engagement-Resource-Catalogue · Tips ad Tools to Engage Your Community in a Digital Environment: Ensuring inclusive public participation is more challenging than ever because of physical distancing requirements, the digital divide, language access challenges and technology learning curves. With those challenges in mind, ILG offered a helpful webinar in July 2020, that featured innovative strategies for using high-tech and low-tech virtual platforms to engage residents on a variety of topics without meeting face-to face.
https://www.ca-ilg.org/digitalengagement
· Broadening Participation Using Online Engagement Tools: This document provides examples and guidance to local governments interested in enhancing public participation outcomes with online engagement tools.
https://www.ca
-ilg.org/sites/main/files/file-
attachments/broadening_participation_via_online_tools_final_draft_1.pdf · The Guide to Remote Community Engagement: A collection of resources designed to support cities that wish to create and maintain strong, institutionalized practices of community engagement during periods of remote working and in an increasingly digital world. Refer to the article, 5 Methods for Non-Internet Based Remote Community Engagement, for ideas on how to supplement traditional online public engagement efforts to be inclusive of residents lacking high-speed broadband internet access.
https://medium.com/the-guide-to-remote-community-engagement · Virtual Public Involvement: The U.S. Department of Transportation, Federal Highway Administration, developed this innovation spotlight to provide an overview of virtual public involvement tools that enhance and broaden the reach of public engagement efforts by making participation more convenient, affordable, and enjoyable for greater numbers of people.
https://www.fhwa.dot.gov/planning/public_involvement/vpi/ · Designing Parks Using Community-Based Planning: This document inspires meaningful community engagement for future public projects. It shares methods learned through California's Statewide Park Development and Community Revitalization Program. These methods have been proven effective in urban, rural, and suburban settings. https://www.parksforcalifornia.org/planning_guide
Integrated Housing, Land Use, and Transportation Planning Development patterns directly impact GHG emissions, including those from transportation between jobs, services, and housing. Improved coordination between housing and transportation can reduce commute times, increase transit ridership, lower vehicle miles traveled, lower pollution and GHG, provide greater economic opportunity, and other positive outcomes.

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Housing Element Compliance
To support planning for housing California’s growing population, the Department of Housing and Community Development (HCD) reviews each local government’s housing element of its general plan.
· The housing element must plan to meet the local government’s existing and regional housing needs allocation and quantify and analyze the specific needs and resources available to address the housing needs.
· A housing element can also provide a mechanism to adopt efficient land-use strategies, including those that address climate change and reduce vehicle miles traveled. For example, strategies could include the promotion of affordable higher density, infill development, mixed-use development, or transit-oriented development near transit stations or transit corridors.
· Local governments are required to annually submit progress reports on the implementation of the housing element and provide a detail of production toward their projected housing needs.

For more information on:
· Housing element requirements, see the HCD Building Blocks website at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building- blocks
· Adopted housing element requirements, see the “Housing Element Process” section at https://www.hcd.ca.gov/planning-and-community-development/housing-elements · A local government’s housing element compliance, see
https://www.hcd.ca.gov/planning-and-community-development/housing-open-data- tools/housing-element-review-and-compliance-report
· Annual Progress Reports, see
https://www.hcd.ca.gov/planning-and-community-development/annual-progress-reports Prohousing Designation Program
The State 2019-20 Budget Act, Assembly Bill 101 enacted the Prohousing Designation Program (Program), which enables HCD to designate local jurisdictions as Prohousing when they demonstrate policies and planning that accelerate the production of housing. To receive the Prohousing Designation, local jurisdictions must meet basic threshold requirements related to compliance with the Housing Element Law and other State housing laws and demonstrate actions worth at least 30 points spread across each of four categories of Prohousing policies: favorable zoning and land use, acceleration of housing production timeframes, reduction of construction and development costs, and providing financial subsidies. The benefit to local jurisdictions receiving the Prohousing Designation includes being given an advantage such as priority processing or
additional points when applying for several competitive funding programs, including:
· Affordable Housing and Sustainable Communities
· Infill Infrastructure Grant
· Transformative Climate Communities
· Transit and Intercity Rail Capital Program
VMT reducing policies and the Prohousing Enhancement Factors below help indicate that a project
is within a jurisdiction supporting integrated housing, land use, and transportation planning.

These policies show that a jurisdictions further supports State housing priorities in promoting affordable housing, reducing development barriers, and reducing vehicle miles travelled.

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Prohousing Enhancement Factors include policies that:
· Represent one element of a unified, multi-faceted strategy to promote multiple planning objectives, such as efficient land use, access to public transportation, affordable housing, climate change solutions, and/or hazard mitigation.
· Promote development consistent with the State planning priorities pursuant to Government Code section 65041.1.
· Go beyond State law requirements in reducing displacement of lower income households and conserving existing housing stock that is affordable to lower income households. · Rezoning and other policies that support high-density development in Location Efficient Communities.

VMT reducing policies may include projects located in jurisdictions that are/have:
· Permitting missing middle housing uses (e.g., triplexes and fourplexes) by right in existing low- density, single-family residential zones.
· With density bonus programs which exceed statutory requirements by 10 percent or more. · Increasing allowable density in low-density, single-family residential areas beyond the requirements of State Accessory Dwelling Unit law (e.g., permitting more than one ADU or JADU per single-family lot). These policies shall be separate from any qualifying policies under category (ii) above.
· Reducing or eliminating parking requirements for residential development as authorized by Government Code sections 65852.2; adopting vehicular parking ratios that are less than the
relevant ratio thresholds at subparagraphs (A), (B), and (C) of Government Code section 65915, subdivision (p)(1); or adopting maximum parking requirements at or less than ratios pursuant to Government Code section 65915, subdivision (p). · Zoning to allow for residential or mixed uses in one or more non-residential zones (e.g., commercial, light industrial). Qualifying non-residential zones do not include open space or substantially similar zones.
· Modifying development standards and other applicable zoning provisions to promote greater development intensity. Potential areas of focus include floor area ratio; height limits; minimum lot
or unit sizes; setbacks; and allowable dwelling units per acre. These policies must be separate from any qualifying policies under Category (ii) above. · Adopted a Nondiscretionary Local Approval Process for residential and mixed-use development in all zones permitting multifamily housing, established a Workforce Housing Opportunity Zone, as defined in Government Code section 65620, or a housing sustainability
district, as defined in Government Code section 66200.
· Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate 150 percent
of the minimum regional housing need allocation for
the Lower-Income allocation in the current housing element cycle. · Priority permit processing or reduced plan check times for Accessory Dwelling Units (ADUs)/Junior Accessory Dwelling Units (JADUs), multifamily housing, or homes affordable to Lower- or Moderate-Income households.
· Adopted ordinances or implemented other mechanisms that result in less restrictive requirements than Government Code sections 65852.2 and 65852.22 to reduce barriers for property owners to create ADUs/JADUs. Examples of q
ualifying policies include, but are not
limited to, development standards improvements, permit processing improvements, dedicated ADU/JADU staff, technical assistance programs, and pre-approved ADU/JADU design packages.
· Measures that reduce costs for transportation-related infrastructure or programs that encourage active modes of transportation or other alternatives to automobiles. Qualifying policies include, but are not limited to, publicly funded programs to expand sidewalks or Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 72
protect bike/micro-mobility lanes; creation of on-street parking for bikes; transit-related improvements; or establishment of carshare programs.
· Established pre-approved or prototype plans for missing middle housing types (e.g., triplexes and fourplexes) in low-density, single-family residential areas. · Documented practice of streamlining housing development at the project level, such as by enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law (Pub. Resources Code, sections 21155.1, 21155.4, 21159.24, 21159.25; Gov. Code, section 65457; Cal Code Regs., tit. 14, sections 15303, 15332; Pub.

Resources Code, sections 21094.5, 21099, 21155.2, 21159.28). · Policies that represent one element of a unified, multi-faceted strategy to promote multiple planning objectives, such as efficient land use, access to public transportation, affordable housing, climate change solutions, and/or hazard mitigation. · Policies that promote development consistent with the State planning priorities pursuant to Government Code section 65041.1.
· Rezoning and other policies that support high-density development in Location Efficient Communities.

For more information on the Prohousing Designation Program, email HCD at [email protected] or visit the following HCD websites:

Program Website
https://www.hcd.ca.gov/planning-and-community-development/prohousing-designation- program
Prohousing Designation Application Status List
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/Prohousing-Public- Application-Tracker.xlsx
Prohousing Designation Program FAQs
hcd.ca.gov/community-development/prohousing/docs/ProhousingFAQ.pdf Promote the Region’s RTP SCS/APS, State Planning Priorities, and Climate Adaptation Goals
SB 1 - The Road Repair and Accountability Act of 2017 (Beall, Chapter 5, Statutes of 2017)
The intent of additional Sustainable Communities grant funding, pursuant to SB 1 - The Road Repair and Accountability Act of 2017, is to encourage local and regional planning that furthers State goals, including but not limited to, the goals and best practices cited in the RTP Guidelines.

Competitive applications will incorporate these cutting-edge planning practices into their proposed planning projects.

SB 1: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB1 2024 RTP Guidelines (Appendix E, Page 228; Appendix G, Page 260) The California Transportation Commission adopted the 2024 RTP Guidelines for RTPAs and 2024 RTP Guidelines for MPOs which includes Appendix E – Promoting Health and Health Equity in MPO RTPs and Appendix G – Planning Practice Examples. These appendices highlight planning practices that are undertaken by large, medium, and small MPOs in both rural and urban areas throughout the state.

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https://catc.ca.gov/-/media/ctc-media/documents/programs/transportation-planning/adopted- 2024-rtp-guidelines-for-mpos.pdf
SB 375 (Steinberg, Chapter 728, Statutes of 2008)
Caltrans supports SB 375 RTP SCS/APS efforts. Successful applications must be compatible with an existing adopted SCS/APS, where applicable, that meets the region’s GHG targets, and must strongly support and aim to implement regional SCS/APS efforts. The SCS/APS planning process is intended to help communities reduce transportation related GHG emissions, coordinate land use and transportation planning, and assist local and regional governments in creating sustainable communities for residents throughout the state.

Although most rural areas of the
state are not subject to SB 375 SCS/APS requirements, Caltrans still promotes the development of sustainable communities in these areas of the state and efforts to match GHG reduction targets and other goals embodied in SCS/APSs under SB 375. Eligible rural agencies are strongly encouraged to apply for Sustainable Communities Competitive Grants.

Information on SB 375-related planning efforts:
https://ww2.arb.ca.gov/our-work/topics/sustainable-communities SB 375: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200720080SB375 Complete Streets and Smart Mobility Framework
In recognition that walking, biking, transit, and passenger rail are integral to our vision of delivering a brighter future for all through a world-class transportation network, Caltrans also supports Complete Streets and the Smart Mobility Framework (SMF). In locations with current and/or future pedestrian, bicycle, or transit needs, Caltrans encourages applicants to consider the tools and techniques contained in the SMF as well as typical components of Complete Streets. Specifically, this might include how the project addresses components of community design, regional accessibility, place types, and priority activities to achieve smart mobility outcomes, community transition, and associated multimodal performance measures for the appropriate context of the problem. Information on these efforts can be found at:

Complete Streets
https://dot.ca.gov/programs/transportation
-planning/division-of-transportation-
planning/complete-streets
Smart Mobility Framework
https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/active- transportation-and-complete-streets/smart-mobility-framework Climate Ready Transportation and Climate Adaptation Planning Through the Grant Program, Caltrans supports the State’s broader efforts to help ensure our transportation infrastructure is climate-ready. In order to prioritize these investments, Governor Gavin Newsom signed Executive Order (EO) N-19-19 on September 20, 2019, to redouble the State’s “efforts to reduce GHG emissions and mitigate the impacts of climate change while building a sustainable, inclusive economy.” The EO lists California’s ambitious and essential climate goals to transition to a healthier, more sustainable, and more inclusive economy, including:
· Reducing GHG emissions 40 percent below 1990 levels by 2030 · Providing 100 percent of the State’s electricity from clean energy sources by 2045
· Reducing methane emissions and hydrofluorocarbon gases by 40 percent Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 74
· Adding five million zero-emission vehicles to the State’s roads by 2030 To help achieve these goals, the EO directs the California State Transportation Agency to leverage over $5 billion in annual state transportation spending toward transportation construction, operations, and maintenance to lower fuel consumption and GHG emissions from transportation.

This includes strategies for lowering vehicle miles traveled, such as supporting housing development near available jobs, and supporting active modes of transportation such as biking and walking that also benefit public health. The EO specifically requires that the State Transportation Agency also work to mitigate increased transportation costs for low-income communities. https://www.gov.ca.gov/wp-content/uploads/2019/09/9.20.19-Climate-EO-N-19-19.pdf Integrated Climate Adaptation and Resiliency Program
Senate Bill 246 (Wieckowski, Chapter 606, Statutes of 2015) established the Integrated Climate Adaptation and Resiliency Program (ICARP) within the Governor’s Office of Planning and Research to coordinate regional and local efforts with State climate adaptation strategies (Public Resources Code Section 71354). Grant applicants may refer to the ICARP website to explore the State Adaptation Clearinghouse, a centralized source of information and resources to assist decision makers at the state, regional, and local levels when planning for and implementing climate adaptation projects to promote resiliency across California. Caltrans is coordinating with ICARP staff on the OPR Climate Adaptation Planning Grant Program.

ICARP Website: https://opr.ca.gov/climate/icarp/
SB 246: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160SB246 Adaptation Planning Grants: https://www.opr.ca.gov/climate/icarp/grants/adaptation-planning- grant.html
California Adaptation Clearinghouse
The Adaptation Clearinghouse serves as a centralized source of information that provides the resources necessary to guide decision makers at the state, regional, and local levels when planning for and implementing climate adaptation projects to promote resiliency to climate change in California.
https://resilientca.org/
ResilientCA Adaptation Planning Map (RAP-Map)
ICARP – supported through the Governor’s Office of Planning & Research – contains a statewide inventory of local government adaptation and resiliency planning efforts. It is an open data tool, to inventory local government climate risk, adaptation, and resiliency planning efforts across the state and track progress towards statewide adaptation planning goals. https://resilientca.org/rap-map/
Community Climate Resiliency
Grant applicants are encouraged to consider if the surrounding community is experiencing any specific climate vulnerabilities and how the proposed planning project aims to address specific concerns. Grant applicants should also describe how potential climate impacts are taken into consideration in the proposed planning project, such as the incorporation of natural infrastructure, and, if applicable, how the project conforms with the local implementation of SB 379 (Jackson, Statutes
of 2015), Government Code Section 65302(g)(4), where cities and counties are required to address climate adaptation and resiliency strategies in the safety element of their general plan.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 75
Defining Vulnerable Communities in an Adaptation Context, OPR Resource Guide The Governor’s Office of Planning and Research, with input from the ICARP Technical Advisory Council, developed a resource guide for practitioners to use when first considering how to define vulnerable communities in an adaptation context. The document includes: (1) The ICARP Technical Advisory Council’s definition of climate-vulnerable communities, (2) A summary of existing statewide assessment tools that can be used to identify vulnerable communities in a climate adaptation context, including a crosswalk with the indicators that are required elements of
an SB 1000 (Leyva, Statutes of 2016) analysis; (3) Additional indicators that could be used to assess underlying vulnerability on a case-by-case basis; (4) A list of process guides that can serve to aid agencies undertaking efforts to define vulnerable communities. https://opr.ca.gov/climate/icarp/vulnerable-communities.html State Guidance for Adaptation Planning
2017 General Plan Guidelines, Safety Element (Ch. 4)
The General Plan Guidelines set out each statutory requirement in detail, provides OPR recommended policy language, and includes online links to city and county general plans that have adopted similar policies. The guidelines include information on how to consider climate change during general plan development/updates. In accordance with Senate Bill 379, general plans must address climate adaptation and resilience within the Safety element. Local governments are required to include a climate change vulnerability assessment, measures to address vulnerabilities, and a comprehensive hazard mitigation and emergency response strategy. https://opr.ca.gov/docs/OPR_COMPLETE_7.31.17.pdf
California Climate Adaptation Planning Guide – local/regional agency guidance The Adaptation Planning Guide provides guidance to support regional and local communities in proactively addressing the unavoidable consequences of climate change. It provides a step-by- step process for local and regional climate vulnerability assessment and adaptation strategy development.
https://resilientca.org/apg/
Planning and Investing for a Resilient California – State Agency guidance Introduces a four-step process for building resilience and a set of resilient decision-making principles for state agencies when considering climate-informed infrastructure investments. These steps include identifying how climate change could affect a project or plan, conducting an analysis of climate risks, making a climate-informed decision, and tracking and monitoring progress. https://www.opr.ca.gov/docs/20180313-Building_a_Resilient_CA.pdf Ocean Protection Council Sea-Level Rise Guidance
The State of California Sea-Level Rise Guidance reflects advances in sea-level rise science and addresses the needs of state agencies and local governments as they incorporate sea-level rise into their planning, permitting, and investment decisions. http://www.opc.ca.gov/webmaster/ftp/pdf/agenda_items/20180314/Item3_Exhibit- A_OPC_SLR_Guidance-rd3.pdf
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 76
California Coastal Commission Sea Level Rise Policy Guidance This guide provides an overview of the best available science on sea level rise for California and recommended methodology for addressing sea level rise in Coastal Commission planning and regulatory actions.
https://documents.coastal.ca.gov/assets/slr/guidance/2018/0_Full_2018AdoptedSLRGuidanceUpd ate.pdf
Coastal Adaptation Planning Guidance for Critical Infrastructure This guidance from the California Coastal Commission addresses two main types of infrastructure – transportation and water – and presents six key considerations for successful adaptation planning.

These considerations are accompanied by recommendations for stakeholders on how to plan effectively for the impacts of sea level rise on coastal infrastructure, a description of the regulatory framework that applies to adaptation planning for infrastructure. https://documents.coastal.ca.gov/assets/slr/SLR%20Guidance_Critical%20Infrastructure_12.6.2021.pdf Coastal Adaptation Planning Guidance and Environmental Justice Considerations The Environmental Justice Policy is the Coastal Commission’s framework for identifying and analyzing project impacts on under-resourced and disadvantaged communities. The policy is designed to achieve more meaningful engagement, equitable process, effective communication, and stronger coastal protection benefits for all Californians. https://documents.coastal.ca.gov/assets/env-justice/CCC_EJ_Policy_FINAL.pdf Coastal Adaptation Planning Guidance and Tribal Consultation The Coastal Commission adopted a Tribal Consultation Policy, which is intended to guide outreach and collaboration. It also helps to inform permit applicants how the Commission will review coastal development permit applications to ensure adequate tribal consultation occurs. https://documents.coastal.ca.gov/assets/env-justice/tribal- consultation/CCC%20Tribal%20Consultation%20Policy%20Adopted%208.8.2018.pdf Climate Data Sources and Adaptation Plans
Cal-Adapt
Cal-Adapt is the repository for State-endorsed climate change projections, developed through the State’s Climate Change Assessment efforts. Cal-Adapt offers free public access to peer-reviewed data that show climate change impacts on state infrastructure, communities, and natural resources. Find tools, data, and resources to conduct research, develop adaptation plans and build applications.
https://cal-adapt.org/
Climate Action Plans
Many California cities and counties are developing Climate Action Plans to reduce their GHG emissions. Agencies may have existing plans that include strategies or insight on potential approaches to implementing climate change considerations on the transportation network. CARB has created a webmap that can be used to identify plans created, GHG inventory information, GHG reduction targets, local strategies planned to meet these targets, and more. The second website provides a host of resources, including example Climate Action Plans and templates. This information can also be found on the Adaptation Clearinghouse.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 77
https://webmaps.arb.ca.gov/capmap/
http://www.ca-ilg.org/climate-action-plans
Caltrans Vulnerability Assessments
To ensure the resiliency of the State Highway System, Caltrans conducted vulnerability assessments statewide. These Summary Reports and associated Technical Reports describe climate change effects in each of Caltrans’ 12 districts.
https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/air- quality-and-climate-change/2019-climate-change-vulnerability-assessments.

Local Vulnerability Assessments
If local vulnerability assessments have been developed along a corridor, their data may be interwoven with Cal-Adapt data, Caltrans Climate Change Vulnerability Assessments, and/or other vulnerability information for more granular analysis of specific local areas, particularly those in more densely populated areas or with a high density of affected transportation assets. Many of these assessments and case studies can be found on the ICARP Case Studies and Examples search page (https://resilientca.org). Some transit and rail providers in California have also developed vulnerability assessments for their 21 networks as well, which may contain detailed analysis that could be useful.

Caltrans Climate Change Adaptation Strategy Report
Through this report, Caltrans is aiming to adopt a leadership role in the process of climate change adaptation through developing a “how to” guide for integrating climate change adaptation into agency activities and decision-making. This Adaptation Strategy Report initially outlines an overall “pathway” for adopting recommendations on how Caltrans should mainstream adaptation strategies throughout functional areas and develop an approach to coordinate with partner agencies. Recognizing the important role of transit and active transportation facilities and routes, this report will develop solutions for all modes of transportation. This report also has a section focused on the incorporation of climate change considerations into System Planning documents. https://transplanning.onramp.dot.ca.gov/downloads/transplanning/files/suscommplan/Climate%2 0Adaptation%20Report_May_2020.pdf
Other Relevant Datasets for Climate Planning
Protecting Californians from Extreme Heat: A State Action Plan to Build Community Resilience A plan that outlines a strategic and comprehensive set of state actions to address extreme heat. https://resources.ca.gov/-/media/CNRA-Website/Files/Initiatives/Climate-Resilience/2022-Final- Extreme-Heat-Action-Plan.pdf
California Water Action Plan
A roadmap for the first five years of the State’s journey toward sustainable water management. http://resources.ca.gov/docs/california_water_action_plan/Final_California_Water_Action_Plan.pdf CALFIRE Fire Hazard Severity Zones
CALFIRE has mapped areas of significant fire hazards based on fuels, terrain, weather, and other factors, forming wildfire severity zones. There are three levels of hazard in the State Responsibility Areas: moderate, high, and very high. This analysis can provide further understanding of wildfire risk at the potential project location.

Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 78
https://osfm.fire.ca.gov/what-we-do/community-wildfire-preparedness-and-mitigation/fire-hazard- severity-zones
California Department of Conservation – Landslide Hazards The California Landslide Inventory is an ongoing project to make the California Geological Survey landslide information publicly accessible.
http://www.conservation.ca.gov/cgs/geologic_hazards/landslides State Wildlife Action Plan
The State Wildlife Action Plan includes conservation actions that respond to current and future challenges with objectives and goals that are specific, measurable, and time bound. https://www.wildlife.ca.gov/SWAP/Final
CDFW Regional Conservation Investment Strategies
This program encourages a voluntary, non-regulatory regional planning process intended to result in higher-quality conservation outcomes and includes an advance mitigation tool. The Program uses a science-based approach to identify conservation and enhancement opportunities that, if implemented, will help California's declining and vulnerable species by protecting, creating, restoring, and reconnecting habitat and may contribute to species recovery and adaptation to climate change and resiliency.
https://www.wildlife.ca.gov/conservation/planning/regional-conservation CDFW Natural Communities Conservation Plans
A Natural Communities Conservation Plan identifies and provides for the regional protection of plants, animals, and their habitats, while allowing compatible and appropriate economic activity. https://www.wildlife.ca.gov/conservation/planning/nccp
California Sustainable Freight Action Plan
In July 2015, Governor Edmund G. Brown Jr. issued Executive Order B-32-15, which provides a vision for California’s transition to a more efficient transport system. This transition of California’s freight transport system is essential to supporting the State’s economic development in coming decades while reducing harmful pollution affecting many California communities. As a key first step, the Governor’s Executive Order directs the California State Transportation Agency, California Environmental Protection Agency, Natural Resources Agency, California Air Resources Board, California Department of Transportation, California Energy Commission, and Governor’s Office of Business and Economic Development to develop a California Sustainable Freight Action Plan (Action Plan), by July 2016. This Action Plan is an unprecedented effort, intended to integrate investments, policies, and programs across several state agencies to help realize a singular vision for California’s freight transport system. The Action Plan provides a recommendation on a high- level vision and broad direction to the Governor to consider for state agencies to utilize when developing specific investments, policies, and programs related to the freight transport system that
serves our state transportation, environmental, and economic interests. Competitive grant applications will highlight how their planning effort will support this Action Plan. https://dot.ca.gov/programs/transportation-planning/division-of-transportation-planning/strategic- freight-planning
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 79
APPENDIX B. SAMPLE APPLICATION PACKAGE
The Grant Application Guide and all fillable application documents can be found on the Sustainable Transportation Planning Grant website.
· Application Checklist, Cover Sheet, and Signature Page · Application Narratives for Sustainable Communities, Climate Adaptation Planning, and Strategic Partnerships
· Scope of Work and Checklist
· Cost and Schedule and Checklist
· Third-Party In-Kind Valuation Plan and Checklist
· Local Resolution and Checklist
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APPENDIX C. CALTRANS/REGIONAL AGENCY

BOUNDARIES MAP
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 109
APPENDIX D. CALTRANS DISTRICT CONTACT LIST
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 110
Caltrans Sustainable Transportation Planning Grants District Lead Contact and Native American Liaison Contact List

DISTRICT LEAD CONTACT(S) NATIVE AMERCAN LIAISON

CONTACT(S) MPO/RTPA
DISTRICT 1
1656 Union Street
P.O. Box 3700
Eureka, CA 95502
Tatiana Ahlstrand
(707) 684-6884
Email:

[email protected]
Jerome Washington
(707) 834-1438
Email:

[email protected]
· Del Norte LTC
· Humboldt CAOG
· Lake CCAPC
· Mendocino COG
DISTRICT 2
1657 Riverside Drive
Redding, CA 96001
Kathy Grah
(530) 782-3152
Email: [email protected]
Kendee Vance
(530) 768-4200
Email:

[email protected]
· Lassen CTC
· Tehama CTC
· Modoc LTC
· Trinity CTC
· Plumas CTC
· Siskiyou CLTC
· Shasta RTA
DISTRICT 3
703 B Street
Marysville, CA 95901
El Dorado, Sacramento, Sutter, Yolo,
and Yuba Counties
Sukhi Johal
(530) 565-3885
Email: [email protected]
Butte, Colusa, Lake Tahoe Basin,
Glenn, Nevada, Placer, and Sierra
Counties
Kevin Yount
(530) 513-0584
Email: [email protected]
Angelina Healy
(530) 720-9449
Email:

[email protected]
· Butte CAG
· Sierra LTC
· Colusa CTC
· Glenn CTC
· El Dorado CTC
· Nevada CTC
· Placer CTPA
· Sacramento Area
COG
· Tahoe MPO
DISTRICT 4
111 Grand Avenue
P.O. Box 23660
Oakland, CA
94623-0660
Stephen Conteh
(510) 960-0887
Email: [email protected]
Becky Frank
(510) 960-0883
Email: [email protected]
Stephen Conteh
(510) 960-0887
Email:

[email protected]
· Metropolitan
Transportation
Commission
DISTRICT 5
50 Higuera Street
San Luis Obispo, CA
93401-5415
Veronica Lezama
(805) 748-4216
Email:

[email protected]
John Olejnik
(805) 748-1787
Email: [email protected]
· Monterey TAMC
· Santa Cruz CCRTC
· San Benito COG
· Assoc. of Monterey
Co. Bay Area Govts
· Santa Barbara CAG
· San Luis Obispo
COG
DISTRICT 6
1352 W. Olive
Avenue
P.O. Box 12616
Fresno, CA
93778-2616
Lorena Mendibles
(559) 840-6066
Email:

[email protected]
Christopher Xiong
(559) 908-7064
Email:

[email protected]
Rachel Padilla
(559) 353-4245
Email:

[email protected]
· Fresno COG
· Tulare CAG
· Kern COG
· Kings CAG
· Madera CTC
Caltrans Sustainable Transportation Planning Grant Program FY 2025-26 Grant Application Guide 111
Caltrans Sustainable Transportation Planning Grants District Lead Contact and Native American Liaison Contact List

DISTRICT LEAD CONTACT(S) NATIVE AMERCAN LIAISON

CONTACT(S) MPO/RTPA
DISTRICT 7
100 S. Main Street
Los Angeles, CA
90012
Kevin Lum
(213) 296-1121
Email: [email protected]
Not applicable
· Southern California
Association of
Governments
DISTRICT 8
464 W. 4th Street
6th Floor, Mail
Station 722
San Bernardino,
CA 92401
Ricky Rivers
(909) 963-9366
Email: [email protected]
Stephanie Ahmad
(909) 383-4057
Email:

[email protected]
Lorna Foster
(909) 501-5759
Email: [email protected]
· Southern California
Association of
Governments
DISTRICT 9
500 S. Main Street
Bishop, CA 93514
Catherine Carr
(760) 874-8318
Email: [email protected]
Marcela Castleberry
(760) 784-4260
Email:

[email protected]
· Inyo LTC
· Mono LTC
· Eastern Kern (COG)
DISTRICT 10
1976 E. Dr. Martin
Luther King
Boulevard
P.O. Box 2048
Stockton, CA
95201
Mountain Counties
Gregoria Ponce
(209) 483-7234
Email: [email protected]
Merced, San Joaquin, Stanislaus
Counties
Tom Dumas
(209) 941-1921
Email: [email protected]
Paul Bauldry
(209) 948-7647
Email: [email protected]
Gregoria Ponce
(209) 483-7234
Email:

[email protected]
· Alpine County LTC
· Amador CTC
· Calaveras COG
· Mariposa LTC
· Merced CAG
· Tuolumne CTC
· San Joaquin COG
· Stanislaus COG
DISTRICT 11
4050 Taylor Street
Mail Station 240
San Diego, CA
92110
Omar Flores
(619) 985-2124
Email: [email protected]
Karen Islas
(619) 380-7501
Email: [email protected]
· San Diego
Association of
Governments
· Southern California
Association of
Governments
DISTRICT 12
1750 E. 4th Street
Santa Ana, CA
92705
Eric Chau
(657) 328-6268
Email: [email protected]
Not applicable
· Southern California
Association of
Governments

CALIFORNIA DEPARTMENT OF TRANSPORTATION

DIVISION OF TRANSPORTATION PLANNING
1120 N STREET
SACRAMENTO, CA 95814
https://dot.ca.gov/programs/transportation-planning

ATTACHMENT B
Draft Caltrans
Sustainable Transportation Planning Grant
Sustainable Transportation Planning Grant Program

SUSTAINABLE COMMUNITIES - GRANT APPLICATION

NARRATIVE

Page 1 of 9 ends

Victorville City CouncilJanuary 21, 2025

Victorville City Council
January 21, 2025