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HomeMy WebLinkAbout22 - CDBG - 2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan AmendmentQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report July 22, 2025 Agenda Item No. 22 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Assistant City Manager/Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator - 949-644- 3236, Iwooding@newportbeachca.gov TITLE: Resolution No. 2025-51: Community Development Block Grant — 2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment ABSTRACT: The U.S. Department of Housing and Urban Development (HUD) requires the City of Newport Beach to prepare and submit a Consolidated Plan to establish the housing and community development priorities for Newport Beach for the next five years under the Community Development Block Grant (CDBG) Program. The Consolidated Plan is a roadmap describing how the City will spend CDBG funds in fiscal years 2025-26 through 2029-30, on projects and programs that benefit low- and moderate -income residents. The one-year Action Plan allocates $402,015 of CDBG funds to specific programs and projects in the upcoming 2025-26 fiscal year and meets the goals of the proposed 2025-29 Consolidated Plan. The Citizen Participation Plan outlines how the public may participate in developing the Consolidated Plan, the Action Plans, and other reports and plans related to the CDBG Program. The Citizen Participation Plan amendment reflects updates to City and HUD procedures since the plan was last updated in 2020. The three documents were prepared and made available for the HUD -required 30-day public review and comment period, which began on June 21, 2025, and concludes with the public hearing before the City Council on July 22, 2025. RECOMMENDATIONS: a) Conduct a public hearing to receive comments on the Draft 2025-29 Consolidated Plan, Draft 2025-26 Action Plan, and Draft Citizen Participation Plan Amendment; b) Find the approval of the 2025-29 Consolidated Plan, 2025-26 Action Plan, and Citizen Participation Plan Amendment exempt from the National Environmental Policy Act NEPA pursuant to 24 CFR Part 58, Section 58.34; c) Find the approval of the 2025-29 Consolidated Plan, 2025-26 Action Plan, and Citizen Participation Plan Amendment are exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or 22-1 Resolution No. 2025-51: Community Development Block Grant—2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment July 22, 2025 Page 2 reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; d) Adopt Resolution No. 2025-51, A Resolution of the City Council of the City of Newport Beach, California, Approving the 2025-2029 Consolidated Plan, the 2025-2026 Annual Action Plan, and the Citizen Participation Plan for the Federal Community Development Block Grant Program; e) Authorize the City Manager to: 1. Submit the 2025-29 Consolidated Plan, 2025-29 Action Plan, and Citizen Participation Plan Amendment to U.S. Department of Housing and Urban Development (HUD); 2. Execute the 2025-26 Community Development Block Grant (CDBG) Program Grant Agreement and all related documents on behalf of the City; 3. Execute the sub -recipient agreements with the nonprofit organizations receiving allocations of CDBG funds in the Action Plan; and 4. Authorize the community development director, or their designee, to be the official representative of the City of Newport Beach, and to submit required environmental documentation for CDBG projects; and f) Authorize the City Manager and City Clerk to execute a five-year Professional Services Agreement with Michael Baker International, Inc. for CDBG program administration and affordable housing monitoring. DISCUSSION: The City receives a formula grant allocation of CDBG funds each year from the federal government, through HUD. The objective of the CDBG program is to develop viable urban communities by providing suitable housing and expanding economic opportunities for low- and moderate -income residents. CDBG funds may be used for a variety of programs, services and facility improvements, such as: • Community and senior services • Fair housing services and landlord/ tenant dispute resolution • Homelessness prevention and social services • Public facilities and infrastructure improvements • Disabled (Americans with Disabilities Act) accessibility improvements • Housing programs • Section 108 loan payments According to CDBG regulation, the City may spend up to 20% of the annual formula grant allocation of CDBG funds on program administration. 22-2 Resolution No. 2025-51: Community Development Block Grant—2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment July 22, 2025 Page 3 Fifteen percent of the grant allocation may be used for community services such as senior meal delivery or homeless prevention programs. The remaining amount of funding may be used for economic development programs like grants to small businesses, or for projects such as street and sidewalk improvements, disabled accessibility improvements, or public facilities improvements such as the construction or rehabilitation of park and recreational facilities, provided the projects meet applicable CDBG regulations and national objectives. Program History Since July 1, 1989, the City has received a total direct allocation of approximately $16.4 million in CDBG funds from HUD, with annual allocations ranging from a low of $319,676 in 2017, to a high of $1,333,178 in 2020 with the additional allocation of COVID-19 relief funds. The 2025-26 formula grant allocation is $402,015. Each year, the City also uses a portion of the funds reserved for program administration to comply with Fair Housing Act requirements and make fair housing enforcement and landlord/tenant mediation services available to the community. These services have been provided at no cost to City of Newport Beach residents by the Fair Housing Foundation since 2011. Consolidated Plan. Action Plan. and Citizen Participation Plan To be eligible for CDBG grants, every five years the City must prepare and submit a Consolidated Plan, and while this is normally completed prior to the beginning of the program year on July 1, the City is still within the statutory time limits and will submit the reports to HUD before the outside deadline in August. The City operates on a fiscal year from July 1 through June 30. The Consolidated Plan examines housing and community development needs in Newport Beach and outlines the City' s priorities, objectives and strategies for investment of CDBG funds to address those needs over the next five years. The Action Plan details how next fiscal year's funding will be specifically allocated and describes how those specific projects address the priorities outlined in the Consolidated Plan. Staff's expenditure recommendations for funding for fiscal year 2025-26 are provided below. The Citizen Participation Plan is updated with every new Consolidated Plan and describes the City's policies and procedures for obtaining input from citizens and other interested parties when preparing the various planning documents and summary reports related to administration of the CDBG program. It is a requisite for receiving CDBG funds. The Citizen Participation Plan covers the Consolidated Plan, each subsequent annual Action Plan, as well as each of the fiscal year-end Consolidated Annual Performance and Evaluation Reports, as well as any amendments to the Consolidated Plan or its five 22-3 Resolution No. 2025-51: Community Development Block Grant—2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment July 22, 2025 Page 4 annual Action Plans. The City's adopted Citizen Participation Plan was last updated and approved by the City Council in 2020. Communitv Outreach Staff held a community meeting on Monday, June 9, 2025, to solicit feedback from residents and other interested parties, and to identify the community's priorities for the CDBG program funds. A community survey was made available at the meeting, through a link on the City' s website and social media channels, and via email communications to interested parties. The City received 48 survey responses. Based on this outreach and the data evaluated in preparation of the Draft 2025-29 Consolidated Plan, the following priorities were identified and will serve as the basis for CDBG program funding decisions over the next five years: • Ensure equal access to housing opportunities • Provide public services for low- and moderate -income residents • Improve public facilities and infrastructure • Address material barriers to accessibility • Promote economic development • Prevent and eliminate homelessness On June 21, 2025, a notice was published in the Daily Pilot informing the general public the City had prepared the Draft 2025-29 Consolidated Plan and Draft 2025-26 Action Plan (Exhibit A to Attachment A), and Draft Citizen Participation Plan Amendment (Exhibit B to Attachment A), and the documents would be available for review and comment until the public hearing on July 22, 2025. The public was provided with an opportunity to provide oral and/or written comments on the three draft plans and the proposed activities for funding in the upcoming fiscal year. To date, no public comments have been received. Additionally, the currently adopted Citizen Participation Plan requires that a public hearing be held to receive testimony from interested residents or parties regarding the Action Plan. The July 22, 2025, public hearing fulfills this requirement. Draft 2025-26 Annual Action Plan On January 18, 2025, the City published a Notice of Funding Availability (NOFA) in the Daily Pilot newspaper and on the City website, to announce the availability of CDBG funds for Fiscal Year 2025-26 and to solicit proposals from nonprofit organizations that provide eligible CDBG services or projects that benefit Newport Beach residents. The City received applications from five organizations requesting CDBG grants. In consideration of the funding available, the amount of funding requested, past performance, anticipated benefit to Newport Beach residents, and City priorities, staff recommends program / project funding levels in the Annual Action Plan as outlined in Table 1 on the next page. 22-4 Resolution No. 2025-51: Community Development Block Grant—2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment July 22, 2025 Page 5 The 2025-26 CDBG allocation from HUD will be $402,015; which together with $315,000 of program income, totals $717,015 available for program year 2025-26. CDBG Ad Hoc Committee On February 11, 2025, the City Council formed the Community Development Block Grant Ad Hoc Advisory Committee (Committee) with Mayor Pro Tern Lauren Kleiman and City Councilmember Sara J. Weber. The purpose of the committee is to review the applications received for the public service programs funded by CDBG and to recommend which organizations to fund. On March 6, 2025, the Committee held a meeting to review the grant applications. The recommendations are as follows: Table 1 Category Requested Recommended Public Services (subject to 15% grant cap) Limit of $60,302 Meals on Wheels OC: Home Delivered Meals $30,000 $30,000 Newport Beach: City Motel Voucher Program $30,000 $30,000 Newport Beach Housing Fund $50,000 $0 Administration (subject to 20% grant cap) Limit of $80,403 CDBG Program Administration $80,700 $80,700 Fair Housing Foundation: Fair Housing Services $12,000 $12,000 Capital Projects $261,310 Trellis International: Senior Home Maintenance $15,000 $0 Total $217,700 $152,700 In consideration of the amount of public service funding available and the amounts requested pursuant to the NOFA, the Committee does not recommend funding the Newport Beach Housing Fund. The application did not clearly demonstrate how specific projects would be accomplished during the fiscal year, and funding the applicant would preclude the City's ability to fund the requests of existing public service providers serving senior citizens and people experiencing homelessness. With the proposed funding levels shown in the table above, Meals on Wheels OC plans to serve approximately 100 Newport Beach residents during the 2025-26 fiscal year. In Newport Beach, the home -delivered meals program focuses on serving senior citizens, who account for approximately 22% of Newport Beach's overall population. In supporting the Police Department's efforts towards addressing homelessness, the Committee also recommends allocating funding to supplement the City's motel voucher 22-5 Resolution No. 2025-51: Community Development Block Grant—2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment July 22, 2025 Page 6 program. The funding will provide approximately 30 individuals with short-term lodging while working to address their long-term housing and service needs. The Committee does not recommend funding Trellis International's application for a low- and moderate -income senior home maintenance program this year. An allocation of $15,000 was provided to Trellis International under the 2024-25 Annual Action Plan and no information to support qualifying projects has been submitted to the City to date. The Draft 2025-26 Annual Action Plan describes each program. Each of the programs and projects recommended are contemplated within the priorities of the proposed 2025-29 Consolidated Plan. CDBG Administration and Affordable Housing Monitoring Consultant The City utilizes a consultant to assist with the preparation of the various action plans and reports, which are submitted to HUD each year, evidencing how the grant funds are being used in strict compliance with HUD's extensive regulations. Pursuant to a Request for Proposals (RFP 25-16), the City selected a new CDBG program administration and affordable housing monitoring consultant, Michael Baker International, Inc., who will administer the program for each of the five fiscal years under the proposed 2025-29 Consolidated Plan. The proposed Professional Services Agreement (Agreement) (Attachment B) with Michael Baker International, Inc. will run for a term of five years from July 22, 2025, through June 30, 2030, with a not -to -exceed contract amount of $396,250. The Agreement uses the City's standard template, including the standard required insurance coverage. The Agreement has been prepared by the City Attorney's Office and has been approved as to form. Table 2 below includes a summary of the costs included in the proposed Agreement: Table 2 Fiscal Year Activity Amount 2025-2026 CDBG Administration & Reports $45,000 Affordable Housing Monitoring $10,500 2026-2027 CDBG Administration & Reports $63,500 Affordable Housing Monitoring $11,025 2027-2028 CDBG Administration & Reports $66,600 Affordable Housing Monitoring $11,575 22-6 Resolution No. 2025-51: Community Development Block Grant—2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment July 22, 2025 Page 7 2028-2029 CDBG Administration & Reports $69,475 Affordable Housing Monitoring $12,200 2029-2030 CDBG Administration & Reports $72,725 Affordable Housing Monitoring $8,450 2024-2025 CDBG CAPER $20,000 General Audit/update existing files $5,200 Total: $396,250 FISCAL IMPACT: There is no fiscal impact on the General Fund related to this item. This item provides for City Council approval of the expenditure of $402,015 in CDBG funds for the 2025-26 fiscal year. The funding for the Agreement will also be allocated from the federal CDBG funds. The costs associated with staff management of the CDBG program are approximately $17,000 per year and enough staff resources have been budgeted with the City's fiscal year 2025-26 budget. Funding for future years will be submitted for the City Council's approval through a CDBG Annual Action Plan in advance of that fiscal year. The revenues and expenditures will be posted to the CDBG Funds accounts in the Community Development Department (120-12050502). ENVIRONMENTAL REVIEW: The development of required plans and allocation of CDBG program funds is an administrative activity exempt under 24 FIR Part 58, Section 58. 34 of the National Environmental Policy Act of 1969 (NEPA), as amended. Staff recommends the City Council find approval of the 2025-29 Consolidated Plan, 2025-26 Action Plan, and Citizen Participation Plan Amendment are not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: In accordance with HUD requirements for a 30-day public review and comment period, notice of the public hearing was published in the Daily Pilot on June 21, 2025. 22-7 Resolution No. 2025-51: Community Development Block Grant—2025-29 Consolidated Plan, 2025-26 Annual Action Plan, and Citizen Participation Plan Amendment July 22, 2025 Page 8 Notice was also sent to each of the applicants requesting funding and emailed to all parties that have signed up to receive notifications from the Planning Division. Further, the agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Resolution No. 2025-51 Attachment B — Professional Services Agreement 22-8 Attachment A Resolution No. 2025-51 22-9 RESOLUTION NO. 2025- 51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE 2025-2029 CONSOLIDATED PLAN, 2025-2026 ANNUAL ACTION PLAN, AND CITIZEN PARTICIPATION PLAN FOR THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the City of Newport Beach ("City") participates in the United States Department of Housing and Urban Development's ("HUD") Community Development Block Grant ("CDBG") program; WHEREAS, HUD requires the City to prepare a Five Year Consolidated Plan for the use of HUD grant programs outlining the use of the grants and the strategic vision for housing and community development in the city; WHEREAS, the current 2020-2025 Consolidated Plan, adopted on May 12, 2020 and amended on July 14, 2020 and July 13, 2021, will expire on June 30 2025; WHEREAS, HUD also requires the City to prepare an annual action plan for the appropriation of the CDBG annual grant; WHEREAS, the City anticipates receiving $402,015 in grant funds for the 2025- 2026 program year, and the draft 2025-2026 Annual Action Plan appropriates these funds along with funds from prior program years to various projects and programs that are deemed consistent with the draft 2025-2029 Consolidated Plan and HUD requirements; WHEREAS, the consolidated plan process ensures that citizens within the community have an opportunity to participate in the identification of the City's housing and community development goals and policies, and the preparation of specific actions or projects proposed to address the City's goals and needs through a citizen participation plan; WHEREAS, the City's adopted Citizen Participation Plan was last updated in 2020, and with every new Five Year Consolidated Plan, the City reviews the plan and makes necessary amendments to the Citizen Participation Plan ("Citizen Participation Plan"); 22-10 Resolution No. 2025- Page 2 of 4 WHEREAS, on January 18, 2025, in accordance with the Citizen Participation Plan, a Notice of Funding Availability was published in the Daily Pilot newspaper and sent to known non-profit community organizations currently operating within the city requesting proposals from non-profit organizations to provide public services to low- and moderate - income residents within the city and to provide fair housing services to all residents of the community; WHEREAS, four proposals to provide public services and one proposal to provide fair housing services were received by the City; WHEREAS, the City prepared the 2025-2029 Consolidated Plan and the 2025- 2026 Annual Action Plan in accordance with applicable sections of 24 Code of Federal Regulations ("C.F.R.") Part 91; WHEREAS, the development of the 2025-2029 Consolidated Plan and the 2025- 2026 Annual Action Plan involved a citizen participation process including a noticed community meeting held on June 9, 2025, and a needs assessment survey inviting both the community and community based organizations to work in partnership with the City to identify needs and allocate CDBG funds; WHEREAS, the City published in the Daily Pilot newspaper on June 21, 2025, notice that the draft 2025-2029 Five Year Consolidated Plan, the 2025-2026 Annual Action Plan, and the Citizen Participation Plan would be available to the public for review and comment from June 21, 2025 to July 22, 2025; and WHEREAS, a public hearing was held by the City Council on July 22, 2025, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California regarding the draft 2025-2029 Consolidated Plan, the 2025-2026 Annual Action Plan, and the Citizen Participation Plan. A notice of time, place and purpose of the public hearing was given in accordance with the California Government Code Section 54950 et seq. and 24 C.F.R Part 91. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby approve the 2025-2029 Consolidated Plan and the 2025-2026 Annual Action Plan attached hereto as Attachment "A" of this resolution, which is incorporated herein by reference. The City Council does hereby approve the Citizen Participation Plan attached hereto as Attachment "B" of this resolution, which is incorporated herein by reference. 22-11 Resolution No. 2025- Page 3 of 4 Section 2: The City Council does hereby authorize: (a) the City Manager, or his/her designee, to: 1) submit the 2025-2029 Consolidated Plan, 2025-2026 Annual Action Plan, and the Citizen Participation Plan to HUD; 2) execute the Fiscal Year 2025- 2026 CDBG Program Grant Agreement and all related documents on behalf of the City; and 3) execute all subrecipient agreements with the nonprofit organizations receiving allocations of CDBG funds in the Action Plan; and (b) the Community Development Director, or his/her designee, to be the official representative of the City to administer the program and submit required environmental documentation to HUD for CDBG projects. Section 3: The City Council finds the development of required plans and allocation of CDBG program funds is an administrative activity exempt under 24 C.F.R. Part 58, Section 58.34 of the National Environmental Policy Act of 1969 ("NEPA"), as amended. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 6: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 22-12 Resolution No. 2025- Page 4 of 4 Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 22nd day of July, 2025. Joe Stapleton Mayor ATTEST: Molly Perry Interim City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE A '�- C. Aaron C. Harp City Attorney Attachment(s): Attachment A - 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan Attachment B - Citizen Participation Plan 22-13 Attachment A 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan File available via link due to size at: https://www.newportbeachca.gov/Pin/PC TEMP LINK/CDBG Attachment%20A Draft%20ConPlan 07092025.pdf 22-14 Attachment B Citizen Participation Plan 22-15 CITY OF NEWPORT BEACH Citizen Participation Plan U.S. Department of Housing and Urban Development Grant Programs July 2025 DRAFT Table of Contents A. Encouragement of Citizen Participation............................................................ 2 B. Citizen Participation Plan.................................................................................. 3 1. Plan Development...........................................................................................3 2. Amendments..................................................................................................4 C. Five -Year Consolidated Plan..............................................................................5 1. Plan Development...........................................................................................6 2. Consolidated Plan Amendment..........................................................................8 D. Annual Action Plan............................................................................................9 1. Plan Development...........................................................................................9 2. Annual Action Plan Amendment....................................................................... 11 E. Consolidated Annual Performance and Evaluation Report (CAPER)..................12 1. Plan Development......................................................................................... 12 F. Assessment of Fair Housing(AFH)...................................................................13 1. Plan Development......................................................................................... 13 2. AFH Amendment........................................................................................... 14 G. Public Hearings, Notification and Access.........................................................15 1. Public Meetings and Hearings.......................................................................... 15 2. Documents for Public Review.......................................................................... 16 3. Access to Meetings........................................................................................ 17 4. Access to Consolidated Plan Documents and Records ......................................... 18 H. Technical Assistance........................................................................................18 I. Comments and Complaints............................................................................. 19 1. Comments....................................................................................................19 2. Complaints................................................................................................... 20 J. Language Access.............................................................................................20 K. Appeals...........................................................................................................20 L. Anti -Displacement and Relocation.....................................................................22 1. Background..................................................................................................22 2. What is Displacement?................................................................................... 22 3. What is a Displaced Person?........................................................................... 23 City of Newport Beach Draft Citizen Participation Plan I July 2025 22-17 4. Persons Not Eligible for Assistance...............................................................23 5. Minimizing Displacement.............................................................................24 6. Anti -Displacement Policy.............................................................................24 7. Displacement Assistance.............................................................................25 8. One -For -One Replacement Dwelling Units.....................................................26 9. Decent, Safe and Sanitary Dwelling..............................................................26 M. Real Property Policies................................................................................. 26 1. Use of Real Property...................................................................................26 2. Real Property Acquisition............................................................................26 3. What is Real Property Acquisition?...............................................................27 4. Eligible Activities........................................................................................ 27 5. Environmental Review Process (24 CFR Part 58)............................................27 City of Newport Beach Page 2 Draft Citizen Participation Plan I July 2025 22-18 Citizen Participation Plan As required by the U.S. Department of Housing and Urban Development (HUD) regulations found at 24 CFR 91.105, this Citizen Participation Plan sets forth the City of Newport Beach's policies and procedures for providing citizens and other interested parties with opportunities to participate in an advisory role in the planning, implementation, and evaluation of the Community Development Block Grant (CDBG) program. The purpose of the CDBG program is the provision of decent housing, a suitable living environment, and expanded economic opportunities for low- and moderate -income residents earning less than 80 percent of the Area Median Income, or in predominantly low- and moderate -income neighborhoods where at least 51 percent of the households are low and moderate -income households. As a recipient of CDBG funds, the City is required to produce the following Consolidated Plan Documents: 1. Citizen Participation Plan - the City's policies and procedures for community participation in the planning, implementation, and evaluation of the CDBG program. 2. Assessment of Fair Housing (AFH) - a five-year plan completed by the City individually or as part of a local consortium of other HUD grantees pursuant to HUD guidance for the evaluation of local housing conditions, economics, policies and practices and the extent to which these factors impact the range of housing choices and opportunities available to all residents in an environment free from discrimination. 3. Consolidated Plan - a five-year plan that documents the City of Newport Beach's housing and community development needs, outlines strategies to address those needs and identifies proposed program accomplishments. 4. Annual Action Plan - an annual plan that describes specific CDBG projects and activities that will be undertaken over the course of the program year, which runs from July 1 to June 30. 5. Consolidated Annual Performance and Evaluation Report (CAPER) - an annual report that evaluates the City's accomplishments and use of CDBG funds. The HUD requirements for citizen participation do not restrict the responsibility or authority of the City of Newport Beach for the development and execution of the Consolidated Plan Documents, but rather facilitate citizen access to, and engagement with the CDBG program. In accordance with the regulations, the minimum annual number of public hearings at which citizens may express their views concerning the Consolidated Plan Documents shall be two (2) public hearings. These public hearings shall occur at two different points during the program year. Additional public hearings and comment periods will be held in the development of the AFH and the Consolidated Plan for 2025-2029 and in the event of substantial amendments to the Citizen Participation Plan, Consolidated Plan, AFH, or Action Plan become necessary as described later in this document. City of Newport Beach Page 3 Draft Citizen Participation Plan I July 2025 22-19 The City, at its discretion, may conduct additional outreach, public meetings or public hearings as necessary to foster citizen access and engagement. A. Encouragement of Citizen Participation The City of Newport Beach provides for and encourages citizens to participate in the development of the Citizen Participation Plan, Consolidated Plan, AFH, Action Plan, and CAPER. The City encourages participation by low- and moderate -income persons, particularly those living in slum and blighted areas (if any such areas are formally designated) and in areas where CDBG funds are proposed to be used, and by residents of predominantly low- and moderate -income neighborhoods'. The City will also take appropriate actions to encourage the participation of all its citizens, including minorities and non-English speaking persons, as well as persons with disabilities. The City will make a concerted effort to notify and encourage the participation of citizens, local and regional institutions, the local Continuum of Care organization addressing homelessness, and public and private organizations including businesses, developers, nonprofit organizations, philanthropic organizations, community -based and faith -based organizations, broadband internet service providers, organizations engaged in narrowing the digital divide, agencies whose primary responsibilities include the management of flood prone areas, public land or water resources, emergency management agencies, state and local health service providers, social service providers, fair housing organizations, state and local governments, public housing agencies, affordable housing developers, businesses, community and faith based organizations, and other stakeholders in the amendment of the Citizen Participation Plan or the development of the AFH, Consolidated Plan, Annual Action Plans through mailings (including electronic mailings), online postings and public notices in the newspaper. The City may also explore alternative public involvement techniques and quantitative ways to measure efforts that encourage citizen participation in a shared vision for change in communities and neighborhoods, and the review of program performance as directed by the CDBG Advisory Committee comprised of the City Manager, the Community Development Director and the Principal Planner. All communication, public comments, and complaints concerning the Citizen Participation Plan and the Consolidated Plan Documents should be directed to: Real Property Administrator Community Development Department 100 Civic Center Drive Newport Beach, CA 92660 (949) 644-3236 ' Predominately low- and moderate -income neighborhoods are defined as those in which 51 % of the residents have incomes at or below 80% of area median income, as determined with HUD -supplied data. City of Newport Beach Page 4 Draft Citizen Participation Plan I July 2025 22-20 B. Citizen Participation Plan The following describes the process and procedures related to the development of the Citizen Participation Plan. a. Plan Development The City's Citizen Participation Plan development procedures are outlined below. Plan Considerations As a part of the Citizen Participation Plan process, and prior to the adoption of the Consolidated Plan, the City will make available the information required by HUD. This information will be made available to citizens, public agencies, and other interested parties. The information to be supplied will include: the amount of funding that the City expects to receive (including grant funds and program income, as applicable), the range of activities that may be undertaken, and the estimated amount of funds that will benefit persons of low- and moderate -income. The City will also provide an assessment of community development and housing needs and identify short-term and long-term community development objectives directed toward the provision of decent housing and the expansion of economic opportunities primarily for persons of low- and moderate -income. ii. Plan Review and Comment The draft Citizen Participation Plan shall be made available for public review for a 30-day period. The Citizen Participation Plan shall be provided in a format accessible to persons with disabilities upon request. Such formats may include, but are not limited to providing oral, Braille, electronic or large print versions of the plan to those visually impaired and delivering copies to those who are homebound. The Citizen Participation Plan will encourage comment and participation by minority and non-English speakers. Publication of the plan will be advertised in other non-English languages as specified in the City's Limited English Proficiency (LEP) Plan and translation services will be available upon request. Written comments will be accepted by the Community Development Department Real Property Administrator or designee during the public review period. A summary of all written comments and those received during the public hearing as well as the City's responses will be attached to the Citizen Participation Plan prior to submission to HUD. City of Newport Beach Page 5 Draft Citizen Participation Plan I July 2025 22-21 iii. Public Hearing The City Council shall conduct a public hearing to accept oral public comments on the draft Citizen Participation Plan. The City Council may approve or reject the Citizen Participation Plan. iv. Submittal to HUD The Citizen Participation Plan shall be approved as a stand-alone document. The City shall submit to HUD: the approved document, a summary of all written comments and those received during the public hearing as well as the City's responses, and proof of compliance with the minimum 30-day public review and comment period requirement. A summary of any comments or views not accepted and the reasons therefore shall be supplied to HUD. b. Amendments The City shall amend the Citizen Participation Plan using the following procedures, as needed: Amendment Considerations The City shall amend the Citizen Participation Plan, as necessary, to ensure adequate engagement and involvement of the public in making decisions related to the programs and documents governed by 24 CFR Part 91. Formal amendment of the Citizen Participation Plan may be required should a provision of the Citizen Participation Plan be found by the City to conflict with HUD regulations. ii. Public Review and Comment Amendments to the Citizen Participation Plan shall be made available for public review for a 30-day period. A public hearing shall be conducted by the City Council at a regularly scheduled meeting so that citizens may express their views. Written comments will be accepted by the Community Development Department Real Property Administrator or designee during the public review period. A summary of all written comments and those received during the public hearing as well as the City's responses will be attached to the amended Citizen Participation Plan prior to submission to HUD. Minor edits to the Citizen Participation Plan, such as updating contact information or technical details about schedules and publications, will not constitute a "Substantial Amendment", and therefore, will not be released for public review and comment. Copies will be made available following the process described in Section G of this document. City of Newport Beach Page 6 Draft Citizen Participation Plan I July 2025 22-22 iii. Public Hearing The City Council shall conduct a public hearing to review and accept public comments on the draft amendment to the Citizen Participation Plan. iv. Submittal to HUD A copy of the Amended Citizen Participation Plan, including a summary of all written comments and those received during the public hearing as well as the City's responses and proof of compliance with the minimum 30-day public review and comment period requirement shall be submitted to HUD for their records. A summary of any comments or views not accepted and the reasons therefore shall be supplied to HUD as applicable. C. Five -Year Consolidated Plan The following paragraphs describe the policies and procedures for the development of the Five -Year Consolidated Plan. To comply with 24 CFR Part 91.105(b), the information supplied in the draft Consolidated Plan for public review will include: • Amount of assistance the City expects to receive (grant funds and program income) • Range of activities that may be undertaken • Estimated amount of funding that will benefit low- and moderate -income persons The City shall also provide an assessment of community development and housing needs and identify short-term and long-term community development objectives directed toward the provision of decent housing and the expansion of economic opportunities primarily for persons of low- and moderate -income. The City will make this information available in the Consolidated Plan published for comment and review. a. Plan Development The City encourages the participation of residents and stakeholders in the development of the Consolidated Plan. The City shall follow the following procedure to prepare and adopt the Consolidated Plan: Plan Considerations The City will make a concerted effort to notify and encourage the participation of citizens, local and regional institutions, the local Continuum of Care organization addressing homelessness, and public and private organizations including businesses, developers, nonprofit organizations, philanthropic organizations, community -based and faith -based organizations, broadband internet service providers, organizations engaged in narrowing the digital City of Newport Beach Page 7 Draft Citizen Participation Plan I July 2025 22-23 divide, agencies whose primary responsibilities include the management of flood prone areas, public land or water resources, emergency management agencies, state and local health service providers, social service providers, fair housing organizations, state and local governments, public housing agencies, affordable housing developers, businesses, community and faith based organizations, and other stakeholders in the development of the Consolidated Plan through mailings (including electronic mailings), online postings and public notices in the newspaper. When preparing the Consolidated Plan describing the City's homeless strategy and the resources available to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) and persons at risk of homelessness, the jurisdiction must consult with: 1. The Orange County Continuum of Care (COC); 2. Public and private agencies that address housing, health, social service, victim services, employment, or education needs of low- income individuals and families; homeless individuals and families, including homeless veterans; youth; and/or other persons with special needs; 3. Publicly funded institutions and systems of care that may discharge persons into homelessness (such as health-care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and 4. Business and civic leaders. The City also will consult with adjacent units of general local government, including local government agencies with metropolitan -wide planning responsibilities, particularly for problems and solutions that go beyond the City's jurisdiction. The City will consult with the Orange County Housing Authority, the local public housing agencies (PHA) concerning consideration of public housing needs and planned programs and activities. A variety of mechanisms may be utilized to solicit input from these persons/service providers/agencies. These include telephone or personal interviews, focus groups, surveys, and consultation and community workshops. ii. Plan Review and Comment The complete draft Consolidated Plan shall be made available for public review for a 30-day period. The Consolidated Plan shall be provided in a format accessible to persons with disabilities upon request. Such formats may include, but are not limited to providing oral, Braille, electronic or large print versions of the plan to those visually impaired and delivering copies to those who are homebound. City of Newport Beach Page 8 Draft Citizen Participation Plan I July 2025 22-24 The plan will encourage comment and participation by minority and non- English speakers. The plan will encourage comment and participation by low- and moderate - income residents, especially those living in low- and moderate -income neighborhoods, in areas where CDBG funds are proposed to be used and residents of public and assisted housing. Activities to encourage participation may include, but are not limited to, advertising publication of the Consolidated Plan in target areas, hosting community meetings in target areas, and making copies of the plan available in these neighborhoods. Copies will be made available following the process described in Section G of this document. Written comments will be accepted by Community Development Department Real Property Administrator or designee during the public review period. A summary of all written comments and those received during the public hearing as well as the City's responses will be attached to the Consolidated Plan prior to submission to HUD. iii. Public Hearing The City Council shall conduct a public hearing to accept public comments on the draft Consolidated Plan. Section G describes the process for publishing notice for and conducting public hearings. iv. Submittal to HUD The Consolidated Plan shall be submitted to HUD with a summary of all written comments and those received during the public hearing as well as the City's responses and proof of compliance with the minimum 30-day public review and comment period requirement. A summary of any comments or views not accepted and the reasons therefore shall be supplied to HUD as applicable. The Consolidated Plan will be submitted to HUD 45 days before the program year pursuant to regulations, unless otherwise directed by HUD. b. Consolidated Plan Amendment The City shall follow the following procedure to complete substantial and minor amendments to the Consolidated Plan, as needed: i. Amendment Considerations The City shall substantially amend the Consolidated Plan if a "substantial change" is proposed by City staff or the City Council. For the purpose of the Consolidated Plan, a "substantial change" is defined as: 1. The City adds or removes Consolidated Plan - Strategic Plan goals. The City may make minor changes to the Consolidated Plan, as needed, so long as the changes do not constitute a substantial amendment as described above. Changes to numeric accomplishment goals within an existing strategic City of Newport Beach Page 9 Draft Citizen Participation Plan I July 2025 22-25 plan goal shall not constitute a substantial amendment. Such changes to the Consolidated Plan will not require public review or a public hearing. ii. Public Review and Comment The City encourages residents and stakeholders to participate in the development of substantial amendments. Substantial Amendments to the Consolidated Plan shall be made available for public review for a 30-day period. Written comments will be accepted by the Community Development Department Real Property Administrator or designee during the public review period. A summary of the comments and the City's responses to the comments will be attached to the Consolidated Plan Substantial Amendment. The City will encourage participation from all residents, especially low- and moderate -income residents, minorities, non-English speakers and those with disabilities. The City will take efforts to make the plan accessible to all such groups. Copies will be made available following the process described in Section G of this document. iii. Public Hearing The City Council shall conduct a public hearing to accept public comments on the draft amendment to the Consolidated Plan. Section G describes the process for publishing notice for and conducting public hearings. iv. Submittal to HUD A copy of the Amended Consolidated Plan, including a summary of all written comments and those received during the public hearing as well as the City's responses and proof of compliance with the minimum 30-day public review and comment period requirement shall be submitted to HUD for their records. A summary of any comments or views not accepted and the reasons therefore shall be supplied to HUD as applicable. D. Annual Action Plan The following describes the process and procedures related to the development of the Annual Action Plan. a. Plan Development The City's procedures for preparing and adopting the Annual Action Plan include: i. Plan Considerations In addition to local residents, the City will ensure that public (including City staff) and private agencies that provide the following services will be consulted in the development of the Action Plan: City of Newport Beach Page 10 Draft Citizen Participation Plan I July 2025 22-26 1. Health Services Providers 2. Social Services for: Children, Elderly, Disabled, Homeless, Persons With AIDS 3. State and Local Health Agencies 4. Adjacent Local Governments 5. Economic Development Interests 6. Community and faith -based organizations 7. Orange County Housing Authority 8. Housing developers These persons/service providers/agencies will be contacted and brought into the process in the following manner: 9. Each year, the City will send a written Notice of Funding Availability (NOFA) to each cooperating department and nonprofit agency advising them that the planning cycle has begun for CDBG funds, and that the City is accepting project proposals. 10.City staff will conduct outreach to special interest groups in Newport Beach, such as senior citizens and the disabled, and make presentations on the Action Plan to these groups where necessary. 11.The City will conduct an eligibility analysis on all project proposals submitted and review the eligible proposals for service provider grants. The review for funding consideration will be conducted by the CDBG Advisory Committee. ii. Plan Review and Comment The draft Annual Action Plan incorporating the City's proposed uses of CDBG funds shall be made available for public review for a 30-day period. The City will encourage participation from all residents, especially low- and moderate - income residents, minorities, and those with disabilities. The City will make the plan accessible to all such groups. Copies will be made available following the process described in Section G of this document. Written comments will be accepted during public review period by the Community Development Department Real Property Administrator or designee. A summary of the comments and the City's responses to the comments will be attached to the draft Action Plan. City of Newport Beach Page 11 Draft Citizen Participation Plan I July 2025 22-27 iii. Public Hearing The CDBG Advisory Committee may hold a public meeting to discuss the eligible project proposals and funding recommendations for both public service grant and capital outlay projects and make funding decisions. The City Council shall conduct one (1) public hearing to accept comments on the draft Action Plan which will be provided for public review for a 30-day period (see above). The City Council shall approve or reject the Action Plan. Section G describes the process for publishing notice for and conducting public hearings. iv. Submittal to HUD Upon adoption of the Annual Action Plan pursuant to HUD regulations, the City Council shall direct City staff to submit the Action Plan to HUD. Documents related to the public participation process, including copies of public notices and a summary of all public comments received, shall be attached to Action Plan. The Action Plan will be submitted to HUD at least 45 days before the program year pursuant to regulations, or as otherwise allowed or required by HUD. b. Annual Action Plan Amendment The City shall follow the following procedure to complete substantial and minor amendments to the Annual Action Plan, as needed: Amendment Considerations The City shall substantially amend the Action Plan if a "substantial change" is proposed by City staff or the City Council. For the purpose of the Action Plan, a "substantial change" is defined as: ■ Carrying out an activity not previously described in the Action Plan; ■ Canceling an activity previously described in the Action Plan; ■ Increasing or decreasing the amount to be expended on a particular activity from the amount stated in the Action Plan by more than 20 percent; or ■ Substantially changing the purpose, scope, location, or beneficiaries of an activity. Changes in funding for an existing activity not amounting to more than 20 percent will not be considered as a substantial change to the Annual Action Plan; no formal amendment to the Action Plan requiring public review and comments will be warranted. However, City Council approval of the activity funding changes is still required. City of Newport Beach Page 12 Draft Citizen Participation Plan I July 2025 22-28 ii. Public Review and Comment The City encourages citizen participation in the development of substantial amendments. Substantial Amendments to the Annual Action Plan shall be made available for public review for a 30-day period. Written comments will be accepted during public review period. Comments should be made to the Community Development Department Real Property Administrator or designee. A summary of the comments and the City's responses to the comments will be attached to the Action Plan Substantial Amendment. The City will encourage participation from all residents, especially low- and moderate -income residents, minorities, and those with disabilities. The City will make efforts to make the plan accessible to all such groups. Copies will be made available following the process described in Section G of this document. iii. Public Hearing The City Council shall conduct a public hearing to review and consider the Substantial Amendment to the Action Plan. The City Council shall accept public comments on the Substantial Amendment to the Action Plan at the public hearing. After public comments are heard and considered by the City Council, the City Council shall approve, approve with modifications, or deny the request for a substantial amendment to the Action Plan. Section G describes the process for publishing notice for and conducting public hearings. iv. Submittal to HUD A copy of the Substantial Amendment to the Annual Action Plan along with copies documenting the public participation process (i.e. public notices and public comments) shall be submitted to HUD for their records. E. Consolidated Annual Performance and Evaluation Report (CAPER) The following describes the process and procedures related to the development of the Consolidated Annual Performance and Evaluation Report (CAPER): a. Plan Development The City shall follow the following procedure in the drafting and adoption of Consolidated Annual Performance and Evaluation Report (CAPER): Plan Considerations Staff will evaluate and report the accomplishments of the previous program year for CDBG and will summarize expenditures that took place during the previous program year. City of Newport Beach Page 13 Draft Citizen Participation Plan I July 2025 22-29 ii. Plan Review and Comment The City encourages citizen participation in the development of the CAPER. The draft CAPER shall be made available for public review for a 15-day period. Written comments will be accepted during public review period by the Community Development Department Real Property Administrator or designee. A summary of any written comments received, or oral comments provided during the public hearing and the City's responses to the comments will be attached to the draft CAPER. Copies will be made available following the process described in Section G of this document. iii. Submittal to HUD Upon completion of the public review period, City staff shall submit the CAPER to HUD. Documents related to the public participation process, including copies of public notices and a summary of all public comments received, shall be attached to the CAPER. The CAPER shall be submitted to HUD within 90 days following the end of the program year pursuant to regulations. F. Assessment of Fair Housing (AFH) The Assessment of Fair Housing (AFH) is a five-year plan completed by the City individually or as part of a local consortium of other HUD grantees pursuant to HUD guidance for the evaluation of local housing conditions, economics, policies and practices and the extent to which these factors impact the range of housing choices and opportunities available to all residents in an environment free from discrimination. The following describes the process and procedures related to the development of the AFH. a. Plan Development The City shall follow the following procedure in the drafting and adoption of the AFH: Plan Considerations As soon as feasible after the start of the public participation process for the AFH, the City will make the HUD -provided data and any other supplemental information available to residents, public agencies and other interested parties by posting the data on the City's website and referencing this information in public notices. The City will make a concerted effort to notify and encourage the participation of citizens, local and regional institutions, the local Continuum of Care organization addressing homelessness, and public and private organizations including businesses, developers, nonprofit organizations, philanthropic organizations, community -based and faith -based organizations, broadband internet service providers, organizations engaged in narrowing the digital City of Newport Beach Page 14 Draft Citizen Participation Plan I July 2025 22-30 divide, agencies whose primary responsibilities include the management of flood prone areas, public land or water resources, emergency management agencies, state and local health service providers, social service providers, fair housing organizations, state and local governments, public housing agencies, affordable housing developers, businesses, community and faith based organizations, and other stakeholders in the development of the AI or AFH through mailings (including electronic mailings), online postings and public notices in the newspaper, as well as telephone or personal interviews, mail surveys, and consultation workshops. ii. Plan Review and Comment The draft AFH shall be made available for public review for a 30-day period. Written comments will be accepted during public review period by the Real Property Administrator or designee. A summary of the comments and the City's responses to the comments will be attached to the draft AFH. Copies will be made available following the process described in Section G of this document. iii. Public Hearing The City Council shall conduct a public hearing to accept public comments on the draft AFH. The City Council shall approve or reject the AFH. Section G describes the process for publishing notice for and conducting public hearings. iv. Submittal to HUD Upon adoption of an AFH, the City shall submit the AFH to HUD for review and acceptance or rejection. The goals of the AFH shall be incorporated into the Consolidated Plan prior to submission of the Consolidated Plan to HUD. b. AFH Amendment The City shall follow the following procedure to complete substantial amendments to AFH, as needed. Amendment Considerations The City shall substantially amend the AFH if a "substantial change" is proposed by City staff or the City Council or as otherwise required by HUD. An AFH that was previously accepted by HUD must be revised and submitted to HUD for review if a material change occurs. A material change is a change in circumstances in the jurisdiction of a program participant that affects the information on which the AFH is based to the extent that the analysis, the fair housing contributing factors, or the priorities and goals of the AFH no longer reflect actual circumstances. Examples include Presidentially declared disasters, under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), in the program participant's area that are of such a nature as to significantly impact the steps a program participant City of Newport Beach Page 15 Draft Citizen Participation Plan I July 2025 22-31 may need to take to affirmatively further fair housing; significant demographic changes; new significant contributing factors in the participant's jurisdiction; and civil rights findings, determinations, settlements (including Voluntary Compliance Agreements), or court orders; or, upon HUD's written notification specifying a material change that requires the revision. A revision to the AFH consists of preparing and submitting amended analyses, assessments, priorities, and goals that take into account the material change, including any new fair housing issues and contributing factors that may arise as a result of the material change. ii. Public Review and Comment The City encourages residents and stakeholders to participate in the development of substantial amendments. Substantial Amendments to the AFH shall be made available for public review for a 30-day period. Written comments will be accepted by the Community Development Department Real Property Manager or designee during the public review period. A summary of the comments and the City's responses to the comments will be attached to the Consolidated Plan Substantial Amendment. The City will encourage participation from all residents, especially low- and moderate -income residents, minorities, and those with disabilities. The City will make efforts to make the plan accessible to all such groups. Copies will be made available following the process described in Section G of this document. iii. Public Hearing The City Council shall conduct a public hearing to accept public comments on the draft amendment to the AFH. The City Council may approve or reject the amendment to the AFH. A revised AFH must be submitted within 12 months of the onset of a material change that triggers a "Substantial Amendment," or at such later date as HUD may specify. Section G describes the process for publishing notice for and conducting public hearings. G. Public Hearings, Notification and Access The following policies and procedures outlining the public hearing process and public hearing notification apply to the development and substantial amendment of the Consolidated Plan, Citizen Participation Plan, Annual Action Plan, CAPER, and AFH. a. Public Meetings and Hearings Public Hearing Process The City will conduct at least two (2) public hearings per year to obtain citizens' views and comments on planning documents during the public review and comment period. These meetings will be conducted at different times of the program year and together will cover the following topics: City of Newport Beach Page 16 Draft Citizen Participation Plan I July 2025 22-32 1. Housing and Community Development Needs 2. Development of Proposed Activities 3. Review of Program Performance ii. Public Hearing Notification Staff will ensure adequate advance notice of all public meetings and hearings. Notices will be printed/posted at least 14 calendar days prior to the meeting date. Adequate noticing will include: 1. Printing a public notice in the Daily Pilot and possibly other newspaper(s) of general circulation in the City; 2. Display copies of notices on the City's website; and 3. Posting notices at City Hall and at the Newport Beach Public Library. Notices will include information on the subject and topic of the meeting including summaries when possible and appropriate to properly inform the public of the meeting. Notices will be published in accordance with the City's approved Limited English Proficiency Plan (LEP) and will be accessible to those with disabilities. Meeting locations and access are described below. b. Documents for Public Review Staff will ensure adequate advanced notice of all public review/comment periods. Notices will be printed/posted prior to the commencement of the public review period alerting residents of the documents for review and providing a summary of the contents of the documents to include information on the content and purpose of the document and the list of locations where copies of the entire draft document(s) may be reviewed. The public comment period for each Consolidated Plan document and substantial amendment to each document subject to public review is listed below: Document Length of Public Comment Period Consolidated Plan 30 days Action Plan 30 days CAPER 15 days AFH 30 days Citizen Participation Plan 30 days The City will ensure that documents are available for disabled and non-English speaking residents upon request. Adequate noticing will include: • Printing public notice in the Daily Pilot and possibly other newspaper(s) of general circulation in the City; Display copies of the notices on the City's website; and City of Newport Beach Page 17 Draft Citizen Participation Plan I July 2025 22-33 Posting notices at City Hall and at the Newport Beach Public Library. The City will place an adequate supply of draft copies of each document and substantial amendments to each document subject to public review at the following locations: City Hall: Community Development Department 100 Civic Center Drive Newport Beach, California 92660 Newport Beach Public Library 1000 Avocado Avenue Newport Beach, California 92660 Materials will also be posted to the City website at: www.newportbeachca.gov/index.aspx?page=1 364 All printed reports and materials shall be made available in a form accessible to persons with disabilities, upon request. c. Access to Meetings Unless otherwise noted, Public Hearings requiring City Council action will be conducted in front of the Newport Beach City Council at 4:00 P.M. at the Newport Beach City Hall Council Chambers (100 Civic Center Drive, Newport Beach, California 92660). For public hearings not requiring City Council participation, the City will make every reasonable effort to conduct such hearings in the low- and moderate -income target areas and at times accessible and convenient to potential and actual beneficiaries. Efforts to ensure this may include, but are not limited to, scheduling meetings in target neighborhoods, scheduling meetings during the evening and weekend and requesting feedback from neighborhood groups and stakeholders for guidance in effective meeting scheduling. Such hearing will be posted and advertised to allow sufficient notice to all interested persons. In accordance with the City's Limited English Proficiency Plan (LEP), translations will be available at all public hearings if the Community Development Department Real Property Administrator receives such a request at least 48 hours prior to the public hearing. It is the intention of the City to comply with the Americans with Disabilities Act (ADA) in all respects. If an attendee or participant at public hearing needs special assistance beyond what is normally provided, the City will attempt to accommodate these people in every reasonable manner. Efforts may include, but are not limited to, accessible seating, video recording for those homebound, sign language services and production of written transcripts. The City's Community Development Department Real Property Administrator must be notified at least City of Newport Beach Page 18 Draft Citizen Participation Plan I July 2025 22-34 48 hours prior to the public hearing. The Community Development Department Real Property Administrator may be reached at: Real Property Administrator Community Development Department 100 Civic Center Drive Newport Beach, CA 92660 (949)644-3236 d. Access to Consolidated Plan Documents and Records All approved Consolidated Plan Documents, and any approved amendments thereto, will be kept on file by the City at the City Hall Community Development Department (100 Civic Center Drive, Newport Beach, California 92660), online at: www.newportbeachca.gov/index.aspx?page=1364 and can be made available to those requesting the plan. The Consolidated Plan Documents shall be provided in a format accessible to persons with disabilities upon request. Such formats may include, but are not limited to providing oral, Braille, electronic or large print versions of the plan to those visually impaired and delivering copies to those who are homebound. Upon request, the Consolidated Plan Documents or summaries of those documents will be made available in an accessible manner in accordance with the City's approved Limited English Proficiency Plan (LEP) or those with disabilities. The City will ensure timely and reasonable access to information and records related to the development of the Consolidated Plan Documents, and the use of HUD CPD funds from the preceding five years. Information to be made available will include budget and program performance information, meeting minutes, and comments received by the City during the development of the Consolidated Plan and its supporting documents. Requests for information and records must be made to the City in writing. Staff will respond to such requests within 15 working days or as soon as possible thereafter. H. Technical Assistance Upon request, staff will provide technical assistance to groups representing extremely -low, low-, and moderate -income persons to develop funding requests for HUD CPD eligible activities. Technical assistance will be provided as follows: • Establish an annual project proposal submission and review cycle (Notice of Funds Availability, or "NOFA") that provides information, instructions, forms and advice to interested extremely low-, low- and moderate -income citizens or representative groups so that they can have reasonable access to the funding consideration process. • Provide self-explanatory project proposal forms and instructions to all persons who request them whether by telephone or by letter. The City's funding application form is designed to be easily understood and short, while City of Newport Beach Page 19 Draft Citizen Participation Plan I July 2025 22-35 still addressing all key items necessary to assess the proposed project. Statistics concerning specific areas of the City are furnished by City staff upon request. • Answer, in writing, all written questions and answer verbally all verbal inquiries received from citizens or representative groups regarding how to write or submit eligible project proposals. • Meet with groups or individuals as requested, to assist in identifying specific needs and to assist in preparing project proposal applications. • Obtain information in the form of completed project proposal forms from citizens or non-profit agencies and assemble a list of proposals available for public review. • Conduct a project eligibility analysis to determine, at an early stage, the eligibility of each project. In cases where only minor adjustments are needed to make proposals eligible or otherwise practical, City staff will advise the applicants on the options available and desired changes to the proposals. • Provide bilingual translation on as needed basis. To request technical assistance, please contact the Community Development Department Real Property Administrator at: Real Property Administrator Community Development Department 100 Civic Center Drive Newport Beach, CA 92660 (949) 644-3236 I. Comments and Complaints a. Comments Citizens or the City government, as well as agencies providing services to the community, are encouraged to state or submit their comments in the development of the Consolidated Plan Documents and any amendments to the Consolidated Plan. Written and verbal comments received at public hearings or during the comment period will be considered and summarized, and included as an attachment to the City's final Consolidated Plan. Written comments should be addressed to: Real Property Administrator Community Development Department 100 Civic Center Drive Newport Beach, CA 92660 (949) 644-3236 A written response will be made to all written comments within ten working days, acknowledging the letter and identifying a plan of action, if necessary. Every effort City of Newport Beach Page 20 Draft Citizen Participation Plan I July 2025 22-36 will be made to send a complete response within 15 working days to those who submit written proposals or comments. Copies of the complete final Consolidated Plan and amendments to it will be available to residents at the following locations: City Hall Community Development Department 100 Civic Center Drive Newport Beach, California 92660 b. Complaints A complaint regarding the Consolidated Planning process and Consolidated Plan amendments must be submitted in writing to the Community Development Department Real Property Administrator. A written response will be made to written complaints within 15 working days, acknowledging the letter and identifying a plan of action, if necessary. The City will accept written complaints provided they specify: • The description of the objection, and supporting facts and data; and • Provide name, address, telephone number, and date of complaint. J. Language Access When a significant number of people speak and read a primary language other than English, translation services at public hearings will be provided in such language if translation services are requested in advance at least 48 hours prior to the public meeting. Requests should be addressed to the Community Development Department Real Property Administrator. The Community Development Department Real Property Administrator may be reached at: Real Property Administrator Community Development Department 100 Civic Center Drive Newport Beach, CA 92660 (949)644-3236 K. Appeals Appeals concerning the Consolidated Plan, statements, or recommendations of the staff should be made to the following persons in the order presented: • Community Development Director • City Manager • City Council Los Angeles Area Office of HUD (if concerns are not answered) City of Newport Beach Page 21 Draft Citizen Participation Plan I July 2025 22-37 L. Anti -Displacement and Relocation The City's Anti -displacement and Relocation Plan describes how Newport Beach will assist persons who must be temporarily relocated or permanently displaced due to the use of HUD CPD funds. This plan takes effect whenever the City funds projects that involve the following: • Property acquisition; • Potential displacement of people from their homes and the need to relocate people (either permanently or temporarily); and • The demolition or conversion of low- and moderate -income dwelling units. 1. Background Two acts apply whenever any of the above issues are present: the Uniform Relocation Assistance and Real Property Policies Act of 1970 (URA) and Section 104(d) of the Housing and Community Development Act of 1974. Each of these acts places different obligations on the City. The URA governs the processes and procedures which the City and the Finance Department must follow to minimize the burden placed on low- and moderate- income tenants, property owners, and business owners who must move (either temporarily or permanently) as the result of a project funded in whole or in part by the CDBG and HOME programs. The URA applies to: • Displacement that results from acquisition, demolition, or rehabilitation for HUD -assisted projects carried out by public agencies, nonprofit organizations, private developers, or others; • Real property acquisition for HUD -assisted projects (whether publicly or privately undertaken); • Creation of a permanent easement or right of way for HUD -assisted projects (whether publicly or privately undertaken); and • Work on private property during the construction of a HUD -assisted project even if the activity is temporary. 2. What is Displacement? Displacement occurs when a person moves as a direct result of federally assisted acquisition, demolition, conversion, or rehabilitation activities, because he or she is: • Required to move; or • Not offered a decent, safe, sanitary and affordable unit in the project; or • Treated "unreasonably" as part of a permanent or temporary move. A person may also be considered displaced if the necessary notices are not given or provided in a timely manner and the person moves for any reason. City of Newport Beach Page 22 Draft Citizen Participation Plan I July 2025 22-38 3. What is a Displaced Person? The term displaced person means any person that moves from real property or moves their personal property from real property permanently as a direct result of one or more of the following activities: • Acquisition of, written notice of intent to acquire, or initiation of negotiations to acquire such real property, in whole or in part, for a project; • Rehabilitation or demolition of such real property for a project; and • Rehabilitation, demolition, or acquisition (or written notice of intent) of all or a part of other real property on which the person conducts a business or farm operation, for a project. Newport Beach offers advisory and financial assistance to eligible tenants (or homeowners) who meet the above definition. 4. Persons Not Eligible for Assistance A person is not eligible for relocation assistance under the provisions of the URA if any of the following occurs: • The person was evicted for serious or repeated violation of the terms and conditions of the lease or occupancy agreement, violation of applicable Federal, State, or local law, or other good cause. However, if the person was evicted only to avoid the application of URA, then that person is considered displaced and is eligible for assistance; • The person has no legal right to occupy the property under State or local law; • The City determines that the person occupied the property to obtain relocation assistance and the HUD Field Office concurs in that determination; • The person is a tenant -occupant that moved into the property after a certain date, specified in the applicable program regulation, and, before leasing and occupying the property, Newport Beach or its subgrantee provided the tenant -occupant written notice of the application for assistance, the project's impact on the person, and the fact that he or she would not qualify as a "displaced person" because of the project; • The person is a tenant -occupant of a substandard dwelling that is acquired or a tenant -occupant of a dwelling unit to which emergency repairs are undertaken and the HUD field office concurs that: o Such repairs or acquisition will benefit the tenant; o Bringing the unit up to a safe, decent, and sanitary condition is not feasible; o The tenant's new rent and average estimated monthly utility costs will not exceed the greater of: the old rent/utility costs or 30 percent of gross household income; and o The project will not impose any unreasonable change in the character or use of the property. City of Newport Beach Page 23 Draft Citizen Participation Plan I July 2025 22-39 • The person is an owner -occupant of the property who moves because of an arm's length acquisition; • Newport Beach or its subgrantee notifies the person that they will not displace him or her for the project; and • The person retains the right of use and occupancy of the real property for life following the acquisition. Newport Beach determines that the person is not displaced as a direct result of the acquisition, rehabilitation, or demolition for the project and the HUD field office concurs in the determination. S. Minimizing Displacement Newport Beach will take reasonable steps to minimize displacement occurring as a result of its CDBG activities. This means that the Community Development Department will: • Consider if displacement will occur as part of funding decisions and project feasibility determinations; • Assure, whenever possible that occupants of buildings to be rehabilitated are offered an opportunity to return; • Plan substantial rehabilitation projects in "stages" to minimize displacement; and • Meet all HUD notification requirements so that affected persons do not move because they have not been informed about project plans and their rights. 6. Anti -Displacement Policy The City seeks to minimize, to the greatest extent feasible, the displacement, whether permanently or temporarily, of persons (families, individuals, businesses, nonprofit organizations, or farms) from projects funded with CDBG and HOME involving single- or multi -family rehabilitation, acquisition, commercial rehabilitation, demolition, economic development, or capital improvement activities. Projects that Newport Beach deems beneficial but that may cause displacement may be recommended and approved for funding only if Newport Beach or its subgrantee demonstrates that such displacement is necessary and vital to the project and that they take efforts to reduce the number of persons displaced. Further, they must clearly demonstrate that the goals and anticipated accomplishments of a project outweigh the adverse effects of displacement imposed on persons who must relocate. 7. Displacement Assistance Consistent with the goals and objectives of the CDBG program, Newport Beach will take all reasonable steps necessary to minimize displacement of persons, even temporarily. If displacement occurs, the City will provide relocation assistance to all persons directly, involuntarily, and permanently displaced according to HUD regulations. If Newport Beach temporarily displaces a low- or moderate -income household, that household becomes eligible for certain relocation payments. The assistance applies to those Dersons residina in the residence at the time the aDDlication is Drocessed and is City of Newport Beach Page 24 Draft Citizen Participation Plan I July 2025 22-40 based on the following procedures: • If the structure and its occupants are determined eligible for temporary relocation assistance, the owner -occupants and tenants are eligible for the actual reasonable cost (based on fair market rent) of temporary lodging facilities until the structure is determined habitable by Newport Beach's housing inspector; • Newport Beach must approve housing and the Lessor and Lessee must sign a rent agreement before move -in. Housing must be comparable functionally to the displacement dwelling and decent, safe, and sanitary. This does not mean that the housing must be in comparable size. The term "functionally equivalent" means that it performs the same function, has the same principal features present, and can contribute to a comparable style of living. Approved lodging accommodations include apartments and houses. Newport Beach does not reimburse "rental expenses" for living with a friend or family member; • Either Newport Beach will provide the owner -occupants and tenants a direct payment for moving expenses (to and from temporary housing) and storage costs, or Newport Beach will arrange moving and storage of furniture with a moving company. If Newport Beach makes a direct payment, complete documentation and receipts are necessary to process claims when storage costs exceed the amount assumed by the direct payment; • Damage deposits, utility hookups, telephone hookups and insurance costs are not eligible for reimbursement; and • The City may pay the cost of relocation assistance from Federal funds or funds available from other sources. 8. One -For -One Replacement Dwelling Units Newport Beach will generally avoid awarding funds for activities resulting in displacement. However, should Newport Beach fund an activity, specific documentation is required to show the replacement of all occupied and vacant dwelling units demolished or converted to another use. Newport Beach will assure that relocation assistance is provided as described in 24 CFR 570.606(b)(2). Before obligating or expending funds that will directly result in such demolition or conversion, Newport Beach will make public and submit to the HUD field office the following information in writing: • A description of the proposed assisted activity; • The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as low- and moderate -income units; • A time schedule for the commencement and completion of the demolition or conversion; • The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement units; • The source of funding and a time schedule for the provision of replacement dwelling units; or City of Newport Beach Page 25 Draft Citizen Participation Plan I July 2025 22-41 • The basis for concluding that each replacement dwelling unit will remain a low- and moderate -income unit for at least ten years from the date of initial occupancy. Consistent with the goals and objectives of the CDBG program, Newport Beach will take all reasonable steps necessary to minimize displacement of persons from their homes. The City will avoid funding projects that cause displacement of persons or businesses and will avoid funding any project that involves the conversion of low- and moderate - income housing to non-residential purposes. 9. Decent, Safe and Sanitary Dwelling The basic definition is found at 49 CFR 24.2(1). The term decent, safe, and sanitary dwelling means a dwelling that meets the following standards and any other housing and occupancy codes that are applicable. It will: • Be structurally sound, weather tight, and in good repair; • Contain a safe electrical wiring system adequate for lighting and other devices; • Contain a safe heating system capable of sustaining a healthful temperature for the displaced person; • Be adequate to accommodate the displaced person. There will be a separate, well lit, ventilated bathroom that provides privacy to the user and contains a toilet, sink, and a bathtub or shower, all in good working order and properly connected to appropriate sources of water and to a sewage drainage system. There should be a kitchen area that contains a fully usable sink, properly connected to hot and cold water and to a sewage drainage system, and adequate space and utility service connections for a stove and refrigerator; • Contain unobstructed egress to safe, open space at ground level; • For a mobility -impaired person, be free of any barriers that would preclude reasonable ingress, egress, or use of the dwelling by such person. This requirement will be satisfied if the displaced person elects to relocate to a dwelling that they select and the displaced person determines that they have reasonable ingress, egress, and the use of the dwelling; and • Comply with lead -based paint requirements of 24 CFR Part 35. M. Anti -Displacement and Relocation The City and its CDBG subrecipients must follow specific guidelines regarding the acquisition and use of real property funded in whole or in part with CDBG funds. 1. Use of Real Property The following standards apply to real property within the recipient's control and acquired or improved, in whole or in part, using CDBG funds. These standards will apply from the date funds are first spent for the property until five years after the project is audited and closed. A recipient may not change the use of any such property (including the beneficiaries of City of Newport Beach Page 26 Draft Citizen Participation Plan I July 2025 22-42 such use) from that for which the acquisition or improvement was made unless the recipient gives affected citizens reasonable notice of, and opportunity to comment on, any such proposed change, and either: • The use of such property qualifies as meeting a national objective and is not a building for the general conduct of government; • The requirements in the paragraph below are met; • If the recipient determines, after consultation with affected citizens, that it is appropriate to change the use of property to a use that does not qualify under the above paragraph, it may retain or dispose of the property. The Newport Beach CDBG program must be reimbursed in the amount of the current fair market value of the property less any portion attributable to expenditures of non-federal funds for the acquisition of and improvements to the property; • If the change of use occurs within five years of the project being audited and closed, income from the disposition of the real property will be returned to the Newport Beach CDBG program; and • Following the reimbursement of the federal program pursuant to the above paragraph of this section, the property is no longer subject to any federal requirements. 2. Real Property Acquisition All real property acquisition activities described in this section and funded in whole or in part with CDBG funds and all real property that must be acquired for an activity assisted with Federal funds, regardless of the actual funding source for the acquisition, are subject to the URA (as amended). 3. What is Real Property Acquisition? Real property acquisition is any acquisition by purchase, lease, donation, or otherwise, including the acquisition of such interests as rights -of -way and permanent easements. HUD Handbook 1378 and 49 CFR Part 24 currently contains such regulations. These regulations detail a standard procedure for acquiring property and methods of determining a purchase price and outline other documents that must be provided to Newport Beach before disbursement of funds. These regulations further require the applicant to provide relocation payments and assistance to any business or residential occupant of the property whom the acquisition will displace. 4. Eligible Activities Newport Beach or its sub -grantee may acquire real property for a project using CDBG funds where the proposed use of the acquired property will be an activity that the City can demonstrate as beneficial to low- and moderate -income persons. 5. Environmental Review Process (24 CFR Part 58) HUD requires that all real property acquisition projects be reviewed before the commitment of Federal funds to assess the impact of a project on the environment. Newport Beach will undertake this review process. The applicant should be aware, City of Newport Beach Page 27 Draft Citizen Participation Plan I July 2025 22-43 however, that this review process may delay the date by which CDBG funds may be available and, in case of serious adverse environmental impacts, may effectively stop a project. City of Newport Beach Page 28 Draft Citizen Participation Plan I July 2025 22-44 Attachment B Professional Services Agreement 22-45 PROFESSIONAL SERVICES AGREEMENT WITH MICHAEL BAKER INTERNATIONAL, INC. FOR ANNUAL CDBG ADMINISTRATION & AFFORDABLE HOUSING MONITORING THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into as of this 22nd day of July, 2025 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and MICHAEL BAKER INTERNATIONAL, INC., a Pennsylvania corporation ("Consultant"), whose address is 500 Grant Street, Suite 5400, Pittsburgh, PA 15219, and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to engage Consultant to provide Annual CDBG Administration & Affordable Housing Monitoring ("Project"). C. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the professional services described in this Agreement. D. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: TERM The term of this Agreement shall commence on the Effective Date, and shall terminate on June 30, 2030, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). City may elect to delete certain Services within the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE 3.1 Time is of the essence in the performance of Services under this Agreement and Consultant shall perform the Services in accordance with the schedule included in Exhibit A. In the absence of a specific schedule, the Services shall be performed to 22-46 completion in a diligent and timely manner. The failure by Consultant -to strictly adhere to the schedule set forth in Exhibit A, if any, or perform the Services in a diligent and timely manner may result in termination of this Agreement by City. 3.2 Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the Services to be provided for the Project, each party hereby agrees to provide notice within two (2) calendar days of the occurrence causing the delay to the other party so that all delays can be addressed. 3.3 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator as defined herein not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.4 For all time periods not specifically set forth herein, Consu[tant shall respond in the most expedient and appropriate manner under the circumstances, by hand -delivery or mail. 4. COMPENSATION TO CONSULTANT 4.1 City shall pay Consultant for the Services on a time and expense not -to - exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all Work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Three Hundred Ninety Six Thousand Two Hundred Fifty Dollars and 00/100 ($396,250.00), without prior written authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.2 Consultant shall submit monthly invoices to City describing the Work performed the preceding month. Consultant's bills shall include the name of the person who performed the Work, a brief description of the Services performed and/or the specific task in the Scope of Services to which it relates, the date the Services were performed, the number of hours spent on all Work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Consultant no later than thirty (30) calendar days after approval of the monthly invoice by City staff. 4.3 City shall reimburse Consultant only for those costs or expenses specifically identified in Exhibit B to this Agreement or specifically approved in writing in advance by City. 4.4 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any Work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Michael Baker International, Inc. Page 2 22-4 7 Compensation for any authorized Extra Work shall be paid in accordance- with the Schedule of Billing Rates as set forth in Exhibit B. 5. PROJECT MANAGER 5.1 Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated Lisa Baker to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5.2 Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of Services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. 5.3 If Consultant is performing inspection services for City, the Project Manager and any other assigned staff shall be equipped with a cellular phone to communicate with City staff. The Project Manager's cellular phone number shall be provided to City. ;�1lilililililililliV �'i l l � l �� � ;7�r � [�7 This Agreement will be administered by the Community Development Department. City's Real Property Administrator or designee shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator shall represent City in all matters pertaining to the Services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES To assist Consultant in the execution of its responsibilities under this Agreement, City agrees to provide access to and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's Work schedule. 8. STANDARD OF CARE 8.1 All of the Services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the Services required by this Agreement, and that it will perform all Services in a manner commensurate with community professional standards and with the ordinary degree of skill and care that would be used by other reasonably competent practitioners of the same discipline under similar circumstances. All Services shall be performed by qualified and experienced personnel who are not employed by City. By delivery of completed Work, Consultant certifies that the Work conforms to the Michael Baker International, Inc. Page 3 22-48 requirements of this Agreement, all applicable federal, state and local laws, and legally recognized professional standards. 8.2 Consultant represents and warrants to City that it has, shall obtain, and shall keep in full force and effect during the term hereof, at its sole cost and expense, all licenses, permits, qualifications, insurance and approvals of whatsoever nature that is legally required of Consultant to practice its profession. Consultant shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, acts of God, or the failure of City to furnish timely information or to approve or disapprove. Consultant's Work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 9. HOLD HARMLESS 9.1 To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement (collectively, the "Indemnified Parties") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims"), which may arise from or in any manner relate (directly or indirectly) to any breach of the terms and conditions of this Agreement, any Work performed or Services provided under this Agreement including, without limitation, defects in workmanship or materials or Consultant's presence or activities conducted on the Project (including the negligent, reckless, and/or willful acts, errors and/or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable, or any or all of them). 9.2 Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence orwillful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorneys' fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Consultant. 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of Michael Baker International, Inc. Page 4 22-49 conducting the Work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. No civil service status or other right of employment shall accrue to Consultant or its employees. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the Work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance of the Work or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the Services. 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the Work to be performed. City agrees to cooperate with the Consultant on the Project. 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Consultant is responsible for keeping the Project Administrator informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement orfor other periods as specified in this Agreement, policies of insurance of the type, amounts, terms and conditions described in the Insurance Requirements attached hereto as Exhibit C, and incorporated herein by reference. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the Services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint -venture or syndicate or co -tenancy, which shall result in changing the control of Michael Baker International, Inc. Page 5 22-50 Consultant. Control means fifty percent (50%) or more of the voting power or twenty-five percent (25%) or more of the assets of the corporation, partnership or joint -venture. 16. SUBCONTRACTING The subcontractors authorized by City, if any, to perform Work on this Project are identified in Exhibit A. Consultant shall be fully responsible to City for all acts and omissions of any subcontractor. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law. City is an intended beneficiary of any Work performed by the subcontractor for purposes of establishing a duty of care between the subcontractor and City. Except as specifically authorized herein, the Services to be provided under this Agreement shall not be otherwise assigned, transferred, contracted or subcontracted out without the prior written approval of City. 17. OWNERSHIP OF DOCUMENTS 17.1 Each and every report, draft, map, record, plan, document and other writing produced, including but not limited to, websites, blogs, social media accounts and applications (hereinafter "Documents"), prepared or caused to be prepared by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Additionally, all material posted in cyberspace by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents, including all Iogins and password information to City upon prior written request. - 17.2 Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant, and City assumes full responsibility for such changes .unless City has given Consultant prior notice and has received from Consultant written consent for such changes. 17.3 All written documents shall be transmitted to City in formats compatible with Microsoft Office and/or viewable with Adobe Acrobat. Michael Baker International, Inc. Page 6 22-51 18. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the Services in this Agreement, shall be kept confidential unless City expressly authorizes in writing the release of information. 19. INTELLECTUAL PROPERTY INDEMNITY Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement or alleged infringement of any United States' letters patent, trademark, or copyright, including costs, contained in Consultant's Documents provided under this Agreement. 20. RECORDS Consultant shall keep records and invoices in connection with the Services to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any Services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all Work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 21. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue Work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 22. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the Work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing in this Section is intended to limit City's rights under the law or any other sections of this Agreement. Michael Baker International, Inc. Page 7 22-52 23. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 24. CONFLICTS OF INTEREST 24.1 Consultant or its employees may be subject to the provisions of the California Political Reform Act of-1974 (the "Act") and/or Government Code §§ 1090 et s-g .-, which (1) require such persons to disclose any financial interest that may foreseeably be materially affected by the Work performed under this Agreement, and (2) prohibit such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. 24.2 If subject to the Act and/or Government Code §§ 1090 et seg., Consultant shall conform to all requirements therein. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. 25. NOTICES 25.1 All notices, demands, requests or approvals, including any change in mailing address, to be given under the terms of this Agreement shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first- class mail, addressed as hereinafter provided. 25.2 All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Real Property Administrator Community Development Department City of Newport Beach 100 Civic Center Drive PO Box 1768 Newport Beach, CA 92658 25.3 All notices, demands, requests or approvals from City to Consultant shall be addressed to Consultant at: Attn: Lisa Baker Michael Baker International, Inc. 3760 Kilroy Airport Way, Suite 270 Long Beach, CA 90806 Michael Baker International, Inc. Page 8 22-53 26. CLAIMS Unless a shorter time is specified elsewhere in this Agreement, before making its final request for payment under this Agreement, Consultant shall submit to City, in writing, all claims for compensation under or arising out of this Agreement. Consultant's acceptance of the final payment shall constitute a waiver of all claims for compensation under or arising out of this Agreement except those previously made in writing and identified by Consultant in writing as unsettled at the time of its final request for payment. Consultant and City expressly agree that in addition to any claims filing requirements set forth in the Agreement, Consultant shall be required to file any claim Consultant may have against City in strict conformance with the Government Claims Act (Government Code sections 900 et seq.). 27. TERMINATION 27.1 In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, and thereafter diligently take steps to cure the default, the non -defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 27.2 Notwithstanding the above provisions, City shall have the right, at its sole and absolute discretion and without cause, of terminating this Agreement at any time by giving no less than seven (7) calendar days' prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for Services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 28. STANDARD PROVISIONS 28.1 Recitals. City and Consultant acknowledge that the above Recitals are true and correct and are hereby incorporated by reference into this Agreement. 28.2 Compliance with all Laws. Consultant shall, at its own cost and expense, comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all Work prepared by Consultant shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 28.3 Waiver. A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach Michael Baker International, Inc. Page 9 22-54 of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 28.4 Integrated Contract, This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 28.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 28.6 interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of the Agreement or any other rule of construction which might otherwise apply. 28.7 Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 28.8 Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 28.9 Controlling Law and Venue. The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 28.10 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, sexual orientation, age or any other impermissible basis under law. 28.11 No Attorneys' Fees. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 28.12 Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. [SIGNATURES ON NEXT PAGE] Michael Baker International, Inc. Page 10 22-55 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: A/ 5 /75 By: Aa n C. Harp � City Attorney C75I- - ATTEST: Date: Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Joe Stapleton Mayor CONSULTANT: International, Inc., corporation Date: Michael Baker a Pennsylvania By� Richard Beck Vice President & Practice Executive — Planning, Survey & Land Development Date: By: Trudi Lim Senior Vice President & Regional Director & Assistant Secretary [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates Exhibit C — Insurance Requirements Michael Baker International, Inc. Page 11 22-56 EXHIBIT SCOPE OF SERVICES Michael Baker International, Inc. Page A-1 22.57 Exhibit A Scope of Services General Administration of the CDBG Program for the upcoming fiscal years 2025-2026 through 2029-2030, for each fiscal year beginning on July 1 and ending the following June 30. 1. General Administration of the CDBG Program includes, but is not limited to the following: (a) Coordination with City staff in the identification, management and completion of all CDBG funded projects including preparation or review of federal funding requirements as part of construction bid packages, request for proposals, monitoring reports, public notices, etc. (b) Preparation of all reports as required by HUD, including but not limited to, FY 2026- 2027 through FY 2029-2030 Action Plans and annual grant funding application, FY 2024-2025 Consolidated Annual Performance and Evaluation Report ("CAPER"), Quarterly Financial Reports, etc. Reports are to be submitted to HUD in compliance with HUD deadlines. (c) Preparation of necessary environmental review forms and documents for CDBG projects. (d) Setup and maintenance of Integrated Disbursement and Information System ("IDIS") records including preparation of requested reports. (e) Preparation of draw down requests for reimbursement of expended funds on a quarterly basis or more frequently as directed. (f) Coordination with HUD Field office staff, Orange County Housing and Community Development ("HCD") staff, Orange County Housing Authority staff, fair housing service providers, other City representatives and various CDBG related constituencies. (g) Audit existing files and IDIS records for the last three fiscal years, and update and/or correct files and IDIS records as necessary. (h) Under direction of the Community Development Department, prepare public notices and reports to the City Council for review and consideration of the Action Plan and CAPER documents. (i) Any such other activities as required to properly administer the CDBG program. 2. Administration of Sub -Recipient contracts including: (a) Prepare a Notice of Funding Availability ("NOFA") on an annual basis for social service funding. Work with City Staff to prepare a funding plan for the recommended social service providers. 22-58 (b) Prepare files and contracts for each of the funded social service and fair housing administration providers and provide guidance with sub -recipients as necessary to ensure proper data collection and program compliance as mandated by HUD. (c) Review and process all sub -recipient invoices. (d) Monitor all sub -recipients on an annual basis or sooner as necessary. 3. Annual monitoring of existing affordable housing developments including: (a) On an annual basis, review and or audit the records of approximately six affordable housing developments to ensure that they are complying with their obligation to provide affordable housing in accordance with applicable restrictions. (b) Contact owners of affordable units to obtain information regarding their plans for continuing affordability on their properties and to encourage the extension of the affordability agreements. (c) Inform and educate owners of affordable units of the State Preservation Notice Law (Government Code Sections 65863.10-13). (d) Prepare and submit a written report to the City containing the findings of the monitoring program including any recommendations or corrective actions. (e) Prepare and maintain a written list of the contact information for all current affordable housing developments in the City, which shall be provided to City staff to be posted on the City's website. 4. The successful proposal will accommodate the City's objective by providing complete CDBG Program Administration and affordable housing compliance monitoring services including the following: (a) Acting as an extension of City staff, the CDBG consultant should anticipate attending bi-monthly meetings with Planning Division or Finance Department staff and meetings with HUD as necessary. (b) Availability for representation at City Council meetings, as required, to provide project updates, presentations associated with program milestones, and to respond to City Council or citizen inquiries. The City Council meets on the second and fourth Tuesday of each month, except in August and December, where the City Council meet once. (c) Consultant shall be readily available to City staff by phone and email and needs to provide informal updates on consultant activities when requested. (d) Consultant shall present the annual Sub -recipient Workshop for the nonprofit organizations receiving CDBG public service contracts through the Action Plan. The workshop shall provide CDBG Program technical assistance and updates on any changes under the CDBG Program technical assistance and updates on any changes under the CDBG program regulations and other federal requirements, including the City's CDBG Program Policies and Procedures for sub -recipients. 22-59 EXHIBIT B SCHEDULE OF BILLING RATES Michael Baker International, Inc. Page B-9 22-60 SCOPE OF SERVICE CDBG Administration Affordable Housing Monitoring HUD Report - CAPER Materials and Supplies FY 2025-2026 TOTAL: Exhibit B Schedule of Project Costs and Billing Rates FY 2025-2026 FISCAL YEAR BUDGET (NTE) July 1. 2025 - June 30. S 19.000 2026 July 1, 2025 - June 30. 10,500 2026 $ i July 1. 2025 - June 30, 21.000 2026 S Juiy 1, 2025 - June 30, 5.000 2026 5 STAFF TITLE: Project Managers TITLE: Specialists Planning Associates TITLE: S 55,500 HOURLY RATE 17Q - 77? $105 - 173 $ 7$ - 94 22-61 FY 2026-2027 SCOPE OF SERVICE FISCAL YEAR BUDGET (NTE) CDBG Administration July 1, 2026 - June 30 2027 19 900 $ Affordable Hauling Monitoring July 1, 2026 - June 30, 2027 11,025 $ HUD Report - CAPER July 1, 2026 - June 30 2027 22.050 $ HUD Report - Annual Action Plan July 1. 2026 - June 30. 2027 16,550 $ Materials and Supplies July 1, 2026 - June 30, 2027 5.000 $ FY 2026-2027 TOTAL: $ 74,525 STAFF HOURLY RATE TITLE: Project Managers 188 - 286 Specialists TITLE: 111 - 182 TITLE: Planning Associates $ 82 - 99 22-62 FY 2027-2028 SCOPE OF SERVICE FISCAL YEAR BUDGET (NTE) CDBG Administration July 1: 2027 — June 30 2028 20.900 $ Affordable Housing Monitoring July 1. 2027 — June 30, 2028 11,575 $ HUD Report — CAPER July I, 2027 — June 30, 2028 23,200 $ HUD Report — Annual Action Plan July 1, 2027 — June 30, 2028 17,500 $ Aiaterials and Supplies July 1, 2027 — June 30, 2028 5,000 $ FY 2027-2028 TOTAL: $ 78,175 STAFF HOURLY RATE TITLE: Project Managers $ 198- 300 Specialists TITLE: $ 116 - 191 TITLE: Planning Associates $ 86 - 104 22-63 FY 2028-2029 SCOPE OF SERVICE FISCAL YEAR BUDGET (NTE) CDBG Administration July 1, 2028 - June 30, 2029 $ 21,900 Affordable Housing Monitoring July 1, 2028 - June 30, 2029 12,200 $ HUD Report - CAPER July 1, 2028 - June 30, 2029 24,325 $ HUD Report - Annual Action Plan July 1, 2028 - June 30, 2029 18250 $ , Materials and Supplies July 1, 2028 - June 30, 2029 5,000 $ FY 2028-2029 TOTAL: $ 81,675 STAFF HOURLY RATE TITLE: Project Managers $ 208 - 315 TITLE: Specialists $ 122- 201 TITLE: Planning Associate! $ 91 - 109 22-64 FY 2029-2030 SCOPE OF SERVICE FISCAL YEAR BUDGET (NTE) CDBG Administration July I, 2029 - June 30. 2030 � 23,Of10 Affordable Housing Monitoring July 1, 2029 - June 30.. 2030 8,450 S HUD Report - CAPER July 1, 2029 - June 30, 2030 25,525 $ HUD Report - Annual Action Plan July 1, 2029 - June 30. 2030 19 200 $ Materials and Supplies July 1, 2029 - June 30, 2030 5,000 $ FY 2029-2030 TOTAL: $ 81,175 STAFF HOURLY RATE TITLE: Project Managers $ 218 - 331 TITLE: Specialists $129 - 211 TITLE; Planning Associates $ 95 - 115 22-65 EXHIBIT C INSURANCE REQUIREMENTS — PROFESSIONAL SERVICES 1. Provision of Insurance. Without limiting Consultant's indemnification of City, and prior to commencement of Work, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. Consultant agrees to provide insurance in accordance with requirements set forth here. If Consultant uses existing coverage to comply and that coverage does not meet these requirements, Consultant agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance, statutory limits, and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each accident for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement. B. General Liability Insurance. Consultant shall maintain commercial general liability insurance, and if necessary umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than two million dollars ($2,000,000) per occurrence, four million dollars ($4,000,000) general aggregate. The policy shall cover liability 'arising from premises, operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). C. Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of Consultant arising out of or in connection with Work to be performed under this Michael Baker International, Inc. Page C-1 22-66 Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit each accident. D. Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of two million dollars ($2,000,000) per claim and four million dollars ($4,000,000) in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the Effective Date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Agreement shall be endorsed to waive subrogation against City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement or shall specifically allow Consultant or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers from each of its subconsultants. B. Additional Insured Status. All liability policies including general liability, excess liability, pollution liability, and automobile liability, if required, but not including professional liability, shall provide or be endorsed to provide that City, its City Council, boards and commissions, officers, agents, volunteers, employees and any person or entity owning or otherwise in legal control of the property upon which Consultant performs the Project and/or Services contemplated by this Agreement shall be included as insureds under such policies. C. Primary and Non Contributory. All liability coverage shall apply on a primary basis and shall not require contribution from any insurance or self-insurance maintained by City. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days' notice of cancellation (except for nonpayment for which ten (10) calendar days' notice. is required) or nonrenewal of coverage for each required coverage. 5. Additional Agreements Between the Parties. The parties hereby agree to the following: Michael Baker International, Inc. Page C-2 22.67 A. Evidence of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. City reserves the right at any time during the. term of the Agreement to change the amounts and types of insurance required by giving Consultant sixty (60) calendar days' advance written notice of such change. If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant's compensation. C. Right to Review Subcontracts. Consultant agrees that upon request, all agreements with subcontractors or others with whom Consultant enters into contracts with on behalf of City will be submitted to City for review. Failure of City to request copies of such agreements will not impose any liability on City, or its employees. Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13. D. Enforcement of Agreement Provisions. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. E. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be Michael Baker International, Inc. Page C-3 22-68 entitled to coverage for higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. F. Self -insured Retentions. Any self -insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self- insurance will not be considered to comply with these requirements unless approved by City. G. City Remedies for Non -Compliance. If Consultant or any subconsultant fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, to terminate this Agreement, or to suspend Consultant's right to proceed until proper evidence of insurance is provided. Any amounts paid by City shall, at City's sole option, be deducted from amounts payable to Consultant or reimbursed by Consultant upon demand. H. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Consultant's Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. Michael Baker International, Inc. Page C-4 22 69