REPEAL OF
BICYCLE
LICENSE
ORDINANCE
February 7, 2023
Acting Captain Bryan Wadkins
REPEAL OF BICYCLE LICENSE
ORDINANCE
• The State of California adopted Assembly Bill
1909, known as the Bicycle Omnibus Bill,
effective January 1, 2023
• One of the provisions prohibits any jurisdiction
from requiring bicycle licensing.
• Based on this legislation our current bicycle
license ordinance, Title 4, Chapter 1 of the
Municipal Code is no longer lawful.
PROJECT 529
• In an effort to provide new methods and
technology to prevent bicycle theft, the PD is
launching a partnership with Project 529.
• App based program allows participants to:
• Voluntarily register bicycles online
• Post stolen bicycle information
• Notify other users to be on the look out for
their lost or stolen bicycle
• Search the app for their bicycle
PROJECT 529
• This program is:
• Free to use
• Completely voluntary
• The Police Department will NOT
use the app for any licensing
enforcement.
• But will use the app to:
• Check any bicycle booked as
evidence/storage.
• Recover lost/stolen bicycles
and reunite them with owners
• Provide free “529 Shield”
stickers as a possible
deterrent.
REPEAL OF BICYCLE LICENSE
ORDINANCE
• Recommendation:
• Staff recommends that the City Council Introduce
this ordinance for first reading to repeal Chapter 1
(Bicycles and Motorized Bicycle Licensing) to Title 4
(Bicycles) of the Costa Mesa Municipal Code to
comply with current California law.
QUESTIONS
February 7, 2023
City Council Meeting
ADU Code Amendment
CO-2022-01
2 What is an Accessory Dwelling Unit (ADU)?
3 Ordinance Background
• Urgency
Ordinance
• ADU Ordinance
2021-08
• 144 ADUs
approved
4 ADUs in Costa Mesa
223 in Process / Approved ADU and JADUs
Attached ADUs 91
Detached ADUs 132
ADUs on Single Family
Properties
163
ADUs on Multiple Family
Properties
60 Average Square Footage 641 SF
Smallest Approved 152 SF
Largest Approved (converted
ADU)
1,508 SF
ADU Permitting
Total Approved 144
2020 Permits Issued 19
2021 Permits Issued 43
2022 Permits Issued 68
2023 PermitsIssued– to date 14
5 Proposed Code Amendment
• AB 2221 and SB 897
(effective in 2023)
• Consistency with State
Law and HCD letter
• Clarifying provisions
within the ordinance
• Planning Commission
Recommendations
6 Proposed Revisions for State Law Compliance
• Definition of Single Family Dwelling
and Multi-Family Dwelling
• Number and type of ADUs
permitted
• ADU Development Standards
• Height
• Setback
• ADU Balconies/Roof Decks/Entry
Standards
• ADU Design
7 Planning Commission Recommendations
• Consider allowing one ADU per unit on a common interest development property.
• Prohibit mechanical equipment within the minimum 4-foot side and rear setbacks.
• Improve garage façade design standards for garage conversion ADUs.
• Differentiate design requirements for ADUs facing front property lines versus side street or alley facing ADUs.
• Add more nuanced requirements for balcony locations to encourage privacy and allow for “eyes on the street”.
8 PROPOSED ADU TYPES AND SQUARE FOOTAGE
JADU* CONVERSION ATTACHED DETACHED
One JADU max
500 SF Max Size
One ADU max
No Max Size
One ADU max
> Of 50% existing or
1,000 SF
One ADU max
1,200 SF Max
Single Family Dwelling Properties Single Family Dwelling and Multi Family Dwelling Conversion Detached
No Max Size Two 800 SF
Conversion Detached Mixed
Min 1 ADU up to
25% of Existing units
No Max Size
Two ADUs max
800 SF each
Conversion Units
and Two Detached
Multi-Family Dwelling Properties
OR OR
OR OR
AND
Common Interest Properties
Conversion
Each Unit can convert existing
floor area into an ADU
9 Proposed ADU Building Height
ADU Type Current Ordinance* Proposed Ordinance*
Single Family Dwelling Maximum Height of the Zone -
27’
Maximum Height of the Zone -
27’
Multi Family Dwelling 16’ Maximum Height of the Zone -
27’
*Two Story ADUs must comply with underlying zone setbacks. *Conversion ADUs have no height requirements because the structure is existing. 10 Proposed Exterior Stairways,
Balconies and Entrances
• New balconies allowed
on the front of the main
building facing the street
or facing side streets.
• Balconies within 25 feet
of a neighbor require
privacy screening.
• Roof decks on ADUs are
not permitted.
• Exterior stairs to ADUs
must not be visible at the
front of the property.
• Entry door to ADUs shall
be on a different building
elevation from the main
entry door.
11 Proposed Design Requirements
• Design to match
main residence
• Converted garage
wall to be covered
with at least 50%
landscaping; or
• Converted garage
wall to include
windows that match
the existing home
covering at least
10% of the façade.
12 Continuing Staff Efforts
• Post online a user friendly FAQ
• Work with the OCCOG for ADU
processing and standard plan ADUs
• Offer expedited ADU plancheck
• Post online information in regards to
potential State and regional funding
sources for ADU pre-construction costs
13 Recommendation
Staff recommends the City Council:
1. Find that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 154282(h), and
2. Give first reading to an Ordinance approving Code Amendment CO-2023-XX, amending Title 13 of the Costa Mesa Municipal Code (Zoning Code) regarding accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs).
February 7, 2023
City Council Meeting
ADU Code Amendment
CO-2022-01
February 7, 2023
REALLOCATION OF COMMUNITY
DEVELOPMENT BLOCK GRANT
–
CORONAVIRUS FUNDING
2 BACKGROUND
May 26, 2020 – City is awarded $668,658 in Round 1 CDBG-CV funds October 9, 2020 – City is awarded $1,168,216 in Round 2 CDBG-CV funds • Total CDBG-CV award - $1,836,874
3 BACKGROUND
Current Accomplishments:
• Rental Assistance – Assisted 82 households (216 individuals) with eviction prevention services • City Net – Afterhours Street Outreach made 844 contacts • Trellis – CIT performs three (3) Costa Mesa maintenance projects per week; 40-50 people attend weekly meetings • Project Hope Alliance – On-Campus Counselors served 329 students across 22 NMUSD campuses + OCC • Community SeniorServ – Projected to serve 170 Costa Mesa seniors with home-delivered and congregate meals
AGENCY ACTIVITY ALLOCATION COUNCIL DATE
SPIN, Mercy House, Families Forward Rental Assistance $904,633 Various Dates City Net Street Outreach $192,000 3/16/2021
Trellis Community Impact Team $90,382 3/16/2021
Community SeniorServ Meals for Seniors $15,000 7/1/2021 Project Hope Alliance Youth Support Services $162,382 9/7/2021 Covid Motel Isolations Motel Vouchers $138,535 10/20/2020 City 18% Admin Staff Salaries $333,942 10/20/2020
TOTAL $1,836,874
4 PROPOSED REALLOCATION
Deliverables:
• City Net – 10.5 months of afterhours street
outreach (Mon, Tue, Thu, Fri – 4-9pm)
• Trellis – 156 maintenance projects in Costa
Mesa over 12 months
• Project Hope Alliance – Additional student
support over the course of the school year
• Community SeniorServ – Continued support of
our elderly population via the home-delivered
and congregate meal programs.
AGENCY/USE
Original
Allocation
Increase/
(Decrease)
Final
Allocation
Rental Assistance $ 904,633 $ - $ 904,633 Motel Isolation Vouchers $ 138,535 $ (70,000) $ 68,535 City Admin (18%) $ 333,942 $ (274,000) $ 59,942 City Net -
Street Outreach $ 192,000 $ 189,000 $ 381,000 Trellis -
Street Outreach $ 90,382 $ 70,000 $ 160,382 Project Hope Alliance -
Youth Services $ 162,382 $ 35,000 $ 197,382 Community SeniorServ -
Meals on Wheels $ 15,000 $ - $ 15,000 TBD - Meals for Seniors $ - $ 50,000 $ 50,000 TOTALS $1,836,874 $ - $1,836,874
5 1. Approve the recommended reallocation of $344,000 in Community Development Block Grant - Coronavirus (CDBG-
CV) funds from Program Administration ($274,000) and the Motel Isolation Voucher Program ($70,000) for street outreach, workforce development, senior meals, and homeless youth programs.
2. Authorize the City Manager (or their designee) and the City Clerk to execute all agreements and/or amendments to the agreements to award CDBG-CV funding in the amount of
$70,000 for Trellis International, $189,000 for City Net, and $35,000 for Project Hope Alliance, each for a one-year term.
3. Approve the appropriation of $50,000 in CDBG-CV funds to provide meals for Costa Mesa senior citizens.
RECOMMENDATIONS
QUESTIONS?
February 7, 2022
FY 21/22 Audited Financial Statements
& Financial Performance
Carol Molina, Finance Director
2 Overview
• FY 2021-22 Financial Performance and Audited Financial Reports • FY 2021-22 Year-End General Fund Balance Reserve
• FY 2021-22 Housing Authority Financials
• Next Steps
Fiscal Year 2021-2022
As of June 30, 2022
Financial Performance &
Audited Financial Reports
4 • Fiscal Year from July 1 to June 30
• Fiscal Year 2021/2022 adopted budget appropriations:
$154.4 million – General Fund; $197.9 million – all funds • Generally Accepted Accounting Principles(GAAP) based
municipal accounting
• Governmental Accounting Standards Board (GASB)
regulated municipal accounting and requirements for
audited financial statements
FINANCE OVERVIEW
5 • A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. • Governmental fund types:
o General Fund
o Special Revenue Fund
o Capital Projects Fund
o Debt Service Fund
o Internal Service Fund
o Custodial Fund
FINANCE OVERVIEW
6 • General Fund – chief operating fund for governmental general purposes.
Tax revenue is the primary source of its revenue. Important to monitor the fund balance of the General Fund.
• Special Revenue Fund – track revenues from specific sources restricted for certain purposes (i.e. grants)
• Capital Projects Fund – used to track large capital projects • Debt Service Fund – used to pay long term debt obligations, such as bonded debt
• Internal Service Fund – collect revenues from departments to pay for services to all City departments (i.e. equipment replacement, legal claims and settlements, and technology replacement)
• Custodial Fund – used to account for funds held by the City in a fiduciary capacity, previously known as “Agency Fund”
GOVERNMENTAL FUND ACCOUNTING
7 • FY 2021-22 ACFR received an unmodified (clean) opinion – the highest opinion possible.
• The City’s ACFR is award winning – receiving the GFOA Certificate of Achievement for Excellence in Financial
Reporting for the past 24 years.
• Annual financial audit conducted by Davis Farr LLP ,an independent accounting firm.
• Audit covers the City’s financial statements and internal controls.
FY 2021-2022 AUDIT OVERVIEW
Davis Farr, LLP
Jennifer Farr, Partner
F
9 • Annual Comprehensive Financial Report
• Public Financing Authority, Financing
Authority, and Housing Authority Financial
Statements
• AQMD and Gann Limit Reports
• Letter to Those Charged with Governance
• Internal Control Letter
• Single Audit of Federal Awards (in process)
SCOPE OF THE AUDIT ENGAGEMENT
10 AUDIT
OPINION
11 Communication to Those in Governance
• Audit risk areas identified during the planning stage of the audit:
• New lease accounting standards
• Compliance with federal grant requirements
• Auditor’s evaluation of independence threats
• Estimates in the financial statements
• Material misstatements detected during the audit
• Immaterial uncorrected adjustments
12 Review of internal controls for purposes of planning the audit (not to express and opinion on the effectiveness of internal controls)
Reviewed and tested controls over key accounting cycles • Cash receipting
• Purchasing
• Cash disbursements
• Payroll
• Investing and banking
• Information systems
Internal Control Recommendations
• Journal entries detected during the audit process
• Deficit unrestricted net position of $226M largely as a result of recording net pension and OPEB obligations totaling $297M.
Evaluation of Internal Controls
13 • No material instances of compliance with laws and
regulations that are direct and material to the
financial statements
• General fund expenditures did not exceed the
City Council approved budget
• No purchasing compliance issues identified
• No investment compliance issues identified
• No debt compliance issues identified
Audit Results on Compliance
Fiscal Year 2021-2022
Financial Performance
Review
15 FY 2021-22 GENERAL FUND
YEAR-END AUDITED ACTUALS
General Fund FY 20/21
Actual
FY 21/22
Actual
Difference
Total Revenues 141,067,096 165,718,869 24,651,773
Less: TotalOperating Expenses (123,533,084) (140,070,170) (16,537,086) Less: Total Transfers,Net (17,505,419) (21,365,113) (3,859,694) Net Change in Fund Balance $28,593 $4,283,586 $4,254,993 16 GENERAL FUND REVENUES
• Sales Tax receipts came in at an all time high of $77.3. million, a year over year increase of $13.5 million
• Transient Occupancy Tax (hotel tax) is almost reaching pre-pandemic levels at $8.4 million
• Property Tax totaled $49.1 million, 3.3% or $1.6 million higher than the prior fiscal year
• Achieved a banner year at $165.7 million in revenues, the highest amount received
17 FUND BALANCE IN GENERAL FUND
(IN THOUSANDS)
Fund Balance Category FY 20/21
Audited
FY 21/22
Audited
Difference
Committed
Declared Disaster $14,125 $14,125 -
Self Insurance 2,000 2,000 -
Economic Reserves 9,000 9,000 -
Assigned
Compensated Absences 5,920 5,584 (336)
Police Retirement 1% Supplemental Plan 2,275 1,885 (390) Workers’ Compensation - 1,000 1,000
Facilities Reserve - 2,000 2,000
Strategic Plan Projects - 2,000 2,000
Restricted
Pension and OPEB 1,778 3,061 1,283
Non-Spendable 965 604 (361)
Unassigned 17,429 16,517 (912)
TOTAL $53,492 $57,776 $4,284
18 FISCAL ACHIEVEMENTS
• Revenues exceed the adopted budget by $14.5 million,
resulting in a banner year
• Exceeded City Council Policy by $2.8 million to achieve a reserve level of $55 million
• Allocated $1.5 million of fiscal year-end General Fund surplus towards Section 115 Trust Fund
• Fully funded the CAN (CIP) at $8.6 million
• Fully funded the Information Technology Replacement
Fund at $2.9 million, fully funding the IT Strategic Plan • Secured low interest rate financing for two Fire and
Rescue Department apparatus (truck and pumping
engine) and Mobile Command Unit at an average of
1.9% interest rate
FINANCIAL RESULTS
ALL FUNDS
20 Financial Results – All Funds FY 21-22
All Funds FY 2021-22
Actuals
Beginning Fund Balance, July 1 $109,414,858
Total Revenues 194,245,502
Less: TotalOperating (145,649,565)
Less: Total CIP (15,846,075)
Less: Transfers Out (21,365,113)
Operating Results Before Debt Service Payment $11,384,749 Less: Debt Service Payment (3,298,349)
Ending Fund Balance, June 30 $117,501,258
Change in Net Position 8,086,400
21 ARPA FUNDING
TRANCHE 1
Description Amount
Operating Expenses
Reinstatement of Staff Hours and Salary: 5% Furloughs 2,272,699 Small Business Grants: Phase 1 1,000,000
COVID-related Homeless Services Expenditures 668,000
Subtotal 3,940,699
Transfers Net
Disaster Fund Expenses: FY 2019/2020 2,309,380
Disaster Fund Expenses: FY 2020/2021 1,748,728
Small Business Grants: Phase II 995,000
Reinstate funding for CAN 2,068,038
IT Replacement Fund: 1.5% of ARPA Revenues 200,000
Reinstate Defunded Positions (14 FTEs) 441,604
Reinstate Department Budget Cuts 1,416,396
Subtotal 9,173,146
Grand Total 13,113,845
22 American Rescue Plan Act Fund
FY 20/21
Actual
FY 21/22
Actual
FY 22/23
Estimated
Beginning Available Resources, July 1 - - 13,291,086
Total Revenues/Cash 13,113,845 13,240,757 -
Plus Investment Earnings - 50,329 -
Less: Operating Expenditures (3,940,699) - -
Less: Committed* - - (4,975,000)
Total Transfers, Net (9,173,146) - -
Subtotal - 13,291,086 (4,975,000)
Ending Available Resources, June 30 - 13,291,086 8,316,086 *Committed: $3.5 million towards the Motel 6 Project Homekey, $975,000 for the Bungalows Project, and $500,000 in Rental Assistance 23 • Balanced the General Fund, ending in the year with a $4.3 million, or 2.7% surplus
• General Fund Reserves at $57.7 million, 2.7 million
more than the Council’s policy
• Deposited $1.5 million in Section 115 Trust Fund
• Secured low interest lease for multiple public safety apparatus items
• Still have ARPA Funds of $8.3 million that is
available to utilize into Fiscal Year 2022-23
Recap
Fiscal Year 2021-2022
Housing Authority
26 HOUSING AUTHORITY
• Separate legal entity formed by the City in 2012 to function as the Housing Successor to the dissolved Costa Mesa Redevelopment Agency.
• Accounts for the City’s homeless outreach and bridge shelter programs and operations.
27 HOUSING AUTHORITY PROGRAMS
• Programs previously held by the former RDA
o First time Homebuyers Program
o Single Family Rehabilitation Program
o Federal Neighborhood Stabilization Program (NSP)
o Costa Mesa Family Village
o Habitat for Humanity Loan Program
o James Street/W. 18th Street Property (rental)
o Affordable Housing Administration
• Established Programs as of FY 2019-20
o Homeless Outreach
o Homeless Bridge Shelter Operations
28 FY 2021-22 HOUSING AUTHORITY
YEAR-END AUDITED ACTUALS
(In Millions)
Description FY 2021/2022
Audited
Actuals
Beginning Fund Balance, July 1st $3.7 M
Revenues and Transfers In 3.9 M
Less: Total Operating Expenses (4.0) M
Net Change in Fund Balance ($0.1) M
Ending Fund Balance, June 30th $3.6 M
Fiscal Year 2021-2022
Financing Authority
30 • Separate legal entity formed in 2017.
• Holds the 2017 Lease Revenue Bonds, which provided for partial funding of the Lions Park Projects.
• Outstanding debt of $23.1 million matures in 2042.
FINANCING AUTHORITY
Description Amount
Beginning Fund Balance on July 1st $1
Plus General Fund Payment In $2,802,553
Less Debt Service Payment ($2,802,550)
Net Change in Fund Balance $3
Ending Fund Balance: June 30, 2022 $4