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SR 03-08-2022 3E City Council Report City Council Meeting: March 8, 2022 Agenda Item: 3.E 1 of 5 To: Mayor and City Council From: David Martin, Director, Building & Safety Subject: Award Request For Proposal to Engineering Solutions Services, Inc. for Seismic Grant Management Services Recommended Action Staff recommends that the City Council: 1. Award RFP #299 to Engineering Solutions Services, Inc. for grant management services for the Community Development Department; 2. Authorize the City Manager to negotiate and execute an agreement with Engineering Solutions Services, Inc., in an amount not to exceed $669,330 (including a $66,933 contingency) for a total amount not to exceed $736,263 over a three-year period, with future year funding contingent on Council budget approval. 3. Authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report. Summary The City was awarded a FEMA-funded Hazard Mitigation Grant in September 2021 totaling up to $6.75M to fund a Seismic Retrofit Grant Program to provide qualifying property owners with reimbursable funds to complete the seismic retrofit of buildings required by the City’s Seismic Retrofit Program. The grant stipulates many requirements and conditions for funding eligibility and close management of the Grant Program is critical to ensure funds are awarded. The Building and Safety Division is seeking to contract with Engineering Solutions Services, Inc. to oversee and manage the Grant Program and provide improved assurance of compliance with FEMA requirements. Limited staff resources in Building and Safety preclude the ability to implement the Grant Program in a timely and effective manner with existing staff. Pursuant to FEMA 3.E Packet Pg. 345 2 of 5 regulations, grant money may be used to cover Grant Program management costs, including costs associated with an outside consultant. Discussion FEMA grant funds will provide qualifying property owners with reimbursable funds to complete the seismic retrofit of their building(s) required by the City’s Seismic Retrofit Program. FEMA grant funding will be awarded in two phases. Phase 1 funding was awarded in October of 2021. Phase 1 allocates funding of $1,930,860 for Grant Program development and management. In this phase, the Grant Program manager would be the point of contact between the City, FEMA, CalOES, and applicants. Phase 1 consists of establishing the Grant Program’s internal processes, community outreach, structural review analysis, project design/engineering, plan review, and selection of projects for submittal to FEMA. Approved projects would be eligible for reimbursement of up to 75% of engineering and design costs. If Phase 1 is completed successfully, FEMA will then award Phase 2 funding in the amount of $4,819,140. Phase two consists of continued Grant Program management and coordination, building permit issuance, construction/inspection, and selection of projects for submittal to FEMA. Approved projects would be eligible for a reimbursement of a portion of the seismic retrofit construction costs and would also fund the oversight costs for this second phase of the Grant Program. Pursuant to FEMA requirements, the Grant Program must be completed within three years of the September 2021 grant award date. Tasks involved in the implementation of the Grant Program include reaching out to as many as three hundred owners of soft story buildings identified as being in need of a seismic retrofit, tracking the progress of their applications through the entire life of the Grant Program, maintaining communications between all involved parties, and managing millions of dollars in federal grant funding. The Building and Safety Division does not have sufficient staffing to successfully manage and complete such an expansive program in less than three 3.E Packet Pg. 346 3 of 5 years. Therefore, an outside agency is necessary to provide management services in support of this vital effort that seeks to ensure a clean and safe Santa Monica. Staff will provide oversight of and direction to the consultant, and the program in general, as well as aid in the execution of the program whenever necessary. To this end, the Building and Safety Division posted a Request for Proposals for grant management services on November 8, 2021, and Engineering Solutions Services, Inc. (‘ESS’) was the best and only bidder. ESS was selected to manage a similar grant program for the City of West Hollywood and demonstrated strong familiarity with FEMA and CalOES requirements. All work performed by ESS will be completely reimbursed by grant funding. Local match requirements of the grant will be met by staff time devoted to the project, as well as permit/plan check fees collected as part of the project. Staff time will be tracked and reported. Vendor Selection Bidder Recommendation Best Qualified Person/Firm Engineering Solutions Services Evaluation Criteria (include all that apply) Training/credentials/experience, competence/skill, capacity/ability to perform services promptly, character/reputation, and price. Municipal Code SMMC 2.24.190 RFPs Received Engineering Solutions Services RFP Data Posted On Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 11/08/2021 City's Online Bidding Site Santa Monica Daily Press 24 11/08/2021 Justification to Award Engineering Solutions Services, Inc. was the only submittal received in response to the RFP. Engineering Solutions Services’ proposal identifies staff members that have managed local hazard mitigation plans for other governmental agencies in California and have worked closely with FEMA and CalOES. Based on the submittal, experience provided, and the criteria listed in SMMC Section 2.24.190, staff recommends Engineering Solutions Services as the best qualified person or firm to provide grant 3.E Packet Pg. 347 4 of 5 management services based on their years of experience in the field, the qualifications of their staff, and their experience successfully performing the same service for other jurisdictions. Past Council Actions Meeting Description June 25, 2019 (attachment C) Council authorization to apply for FEMA Hazard Mitigation Grant to support the City’s Seismic Retrofit Program Financial Impacts and Budget Actions Phase 1 grant funding was awarded in October of 2021. Staff recommends the addition of the following accounts to the budget. If grant renewals are awarded, the new accounts will be included in subsequent year budgets, contingent on Council budget approval. FY 2021-2022 Grant Budget Changes Establish Revenue Budget Appropriate Funds Account Number(s) Amount Account Number(s) Amount   20700004.4XXXXX   $1,930,860   20700004.5XXXXX   $1,930,860 Total $1,930,860 Total $1,930,860 All work performed by Engineering Solutions Services will be entirely reimbursed by seismic grant funding received from FEMA. Staff seeks authority to approve funding from the Miscellaneous Grants Fund to award an agreement with Engineering Solutions Services for grant management services. Contract/Agreement/Purchase Order Request FY 2021-22 Budget Request Amount Department/CIP Account # Total Contract Amount $736,263 20700004.5XXXXX $736,263 3.E Packet Pg. 348 5 of 5 Prepared By: Kevin Purcell, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. Resolution 11179 - Retrofit Grant Program Authorization B. Oaks Intiative Disclosure Form (ESS) C. June 25, 2019 Staff Report http://santamonicacityca.iqm2.com/Citizens/FileOpen.aspx?Type=30&ID=25994 &MeetingID=1184 (Web Link) 3.E Packet Pg. 349 1 City Council Meeting June 25, 2019 Santa Monica, California RESOLUTION NUMBER 11179 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER TO SUBMIT A LETTER OF COMMITMENT OF MATCHING FUNDS AND ALL OTHER NECESSARY DOCUMENTS FOR A HAZARD MITIGATION GRANT APPLICATION FOR THE RETROFIT GRANTS PROGRAM TO THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) AND SUBJECT TO ITS AWARD TO ACCEPT THE GRANT AND ALL GRANT RENEWALS AND EXECUTE ALL DOCUMENTS NECESSARY TO ACCEPTANCE WHEREAS, as a result of the declaration of major federal disaster DR-4407 due to 2018 wildfires in Northern and Southern California, the State of California is eligible for Hazard Mitigation Grant Program (HMGP) funding aimed at reducing the risk of loss of life and property from future disasters; and WHEREAS, federal funding is provided under the Robert T. Stafford Emergency Assistance and Disaster Relief Act (Stafford Act) through FEMA and the California Governor’s Office of Emergency Services (Cal OES); Cal OES is responsible for identifying program priorities, reviewing applications and forwarding recommendations for funding to FEMA; FEMA has final approval for activity eligibility and funding; and WHEREAS, the federal regulations governing HMGP Projects are found in Title 44 of the Code of Federal Regulations (44 CFR) Part 206, and the Uniform Administrative Requirements for Federal Awards are found in 2 CFR Part 200; and DocuSign Envelope ID: 29BA150A-8D0C-4DD9-A42F-43E3C3329807 3.E.a Packet Pg. 350 Attachment: Resolution 11179 - Retrofit Grant Program Authorization (4947 : Award Bid for Seismic Grant Management Services) 2 WHEREAS, a letter committing at least 25% matching funds is required as part of the grant application; the matching funds must be from a non-federal source and must be in place at the time of application submittal; and WHEREAS, the match would consist of an amount not to exceed $2.25 million over the three-year grant period; a significant portion of this match would be provided by eligible property owners who participate in the grant program in the form of owner-paid design and construction costs; a portion of the required match would also be provided by costs incurred by the City in administering the grant program, including time dedicated to program management, plan review, permit-related services, and inspections; and WHEREAS, the $6.75 million grant will be used to provide rebates for retrofit design and construction costs to owners of soft-story buildings identified as Priority 2 (more than two stories and less than 16 units) and Priority 3 (16 or more units) building types in the City’s Seismic Retrofit Program; a portion of the grant will also be used to fund the City’s administrative and operating costs of managing the grant program (separate from the administrative and operating costs counted towards the City’s match). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City Manager, or his or her designee, is authorized to submit a Hazard Mitigation Grant application to FEMA in the amount of $6.75 million for the Retrofit Grant Program, along with a letter of commitment to provide up to $2.25 million in local matching funds and all other necessary documents, and subject to its award, to accept DocuSign Envelope ID: 29BA150A-8D0C-4DD9-A42F-43E3C3329807 3.E.a Packet Pg. 351 Attachment: Resolution 11179 - Retrofit Grant Program Authorization (4947 : Award Bid for Seismic Grant Management Services) 3 the grant and all grant renewals and negotiate, enter into, and execute all documents necessary to evidence, secure, and implement the award. SECTION 2. The City Manager, or his or her designee, is authorized to provide to the California Governor’s Office of Emergency Services such assurances and agreements as are required in connection with the Hazard Mitigation Grant application and, if awarded, its acceptance. SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ LANE DILG City Attorney DocuSign Envelope ID: 29BA150A-8D0C-4DD9-A42F-43E3C3329807 3.E.a Packet Pg. 352 Attachment: Resolution 11179 - Retrofit Grant Program Authorization (4947 : Award Bid for Seismic Grant Management Services) Adopted and approved this 25th day of June 2019. __________________________ Gleam Davis, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11179 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 25th day of June 2019, by the following vote: AYES: Councilmembers Himmelrich, Jara, Morena, McKeown, Winterer Mayor Davis, Mayor Pro Tem O’Day NOES: None ABSENT: None ATTEST: _____________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 29BA150A-8D0C-4DD9-A42F-43E3C3329807 3.E.a Packet Pg. 353 Attachment: Resolution 11179 - Retrofit Grant Program Authorization (4947 : Award Bid for Seismic Grant Management Services) CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. 3.E.b Packet Pg. 354 Attachment: Oaks Intiative Disclosure Form (ESS) (4947 : Award Bid for Seismic Grant Management Services) CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ 3.E.b Packet Pg. 355 Attachment: Oaks Intiative Disclosure Form (ESS) (4947 : Award Bid for Seismic Grant Management Services)