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City staff presented these two potential year-end surplus options to the City’sFinance and Pension Advisory Committee. Three separate public meetings were noticed and held to discuss, in order of preference, the committee’s recommendations as to how to best utilize the estimated surplus amounts.
ANALYSIS:
The FY 2022-23 Amended Budget for General Fund Revenues is now estimated at $177.0 million, versus the adopted amount of $163.6 million. After accounting for projected General Fund expenses of $171.3 million, it is anticipated that for the Fiscal Year ending June 30, 2023, there may be a $4.0 million to 6.0 million surplus. This is due to anticipated increases in General Fund revenues, including sales and use taxes, and transient occupancy tax. This presents the City with the opportunity to use one-time funds to achieve City Council goals and objectives, and fund priority projects.
City staff and Finance and Pension Advisory Committee (FiPAC) members utilized the City Council’s approved Strategic Planning Goals to guide the fiscal year-end operating surplus recommendations to the City Council. They are as follows:
City Council Goal: Achieve Long-Term Fiscal Sustainability FY 2022-23 Year-End General Fund Preliminary, Unaudited Estimate From the most recent preliminary findings, the City’sGeneral Fund year-end preliminary unaudited results for the FY 2022-23, ending on June 30, 2023, are currently showing a positive year-end surplus of approximately $4.0 million to $6.0 million. City staff anticipates the financial audit to be finalized by the end of December. Upon the finalization of the Annual Comprehensive Financial Report (ACFR), City staff will present to the City Council the audited year-end report. The table below shows the General Fund Balance on June 30, 2022.
Table 1: General Fund Reserves
The Fund Balance and Reserves Financial Policy states that the City determined the appropriate
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The Fund Balance and Reserves Financial Policy states that the City determined the appropriate reserve level for the General Fund to be $55 million. The Fiscal Year 2021-2022 audited financials resulted in an increase of the City’sFund Balance by $4.3 million, bringing the total fund balance for the General Fund to $57.8 million. This amount exceeds City Council’starget of $55.0 million by $2.8 million.
The General Fund reserves currently includes $1.0 million assigned for Workers’Compensation to partially fund one Self-Insurance Retention (SIR) claim. The City’sself-insured policy requires that the City cover the first $2.0 million per claim. Amounts in excess of $2.0 million will be covered by the City’s insurance policy.
City Council Goal: Achieve Long Term Fiscal Sustainability Lions Parks Café
The FY 2023-24 Adopted Budget Capital Improvement Fund includes the total cost of design, construction management, and construction for the Lions Park Café $1.2 million allocation received through Supervisor Katrina Foley from County American Rescue Plan Act (ARPA) funds. However; once staff began soliciting quotes for the design, construction management, and construction of Lions Park Café it was determined that the cost would exceed $1.2 million and is now estimated at approximately $2.3 million. FiPAC recommended this project as its priority funding item due to the time sensitivity of the grant funds that need to be committed by December 2024 and expended by December 2025 as per the ARPA (American Rescue Plan Act) Guidelines.
City Council Goal: Diversify, Stabilize and Increase Housing to Reflect Community Needs Sixth Cycle General Plan Housing Element Program
The State of California requires every city and county to adopt a comprehensive general plan that is “anintegrated, internally consistent, and compatible statement of policies”to address all issues that affect the physical development of the community, as well as the land outside its boundaries that potentially affect long-term planning (Government Code Section 65300, et seq.). The role of a general plan is to act as a “constitution”for development, the foundation upon which all land use and related decisions are based.
The Costa Mesa General Plan establishes the long-range planning and policy direction that guides change and preserves the qualities that define our community. The Costa Mesa General Plan consists of 10 elements: Land Use, Circulation, Housing, Conservation, Noise, Safety, Open Space and Recreation, Growth Management, Community Design, and Historical and cultural Resources.
The City’s 2015-2035 General Plan Housing Element requires an update every eight years.
The Housing Element provides an analysis of the City’s demographic, economic, and housing characteristics, identifies community housing needs, and establishes objectives, policies and programs to meet those needs. To remain in compliance with State Housing Law, the City’sHousing Element must respond to various State laws and requirements and must be adopted by City Council and certified by the California State Department of Housing and Community Development.
Within the City’s completed Housing Element are programs that are required to be implemented
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Within the City’s completed Housing Element are programs that are required to be implemented based on statutory requirements and specific timelines. These programs are consistent with the City Council’sstated priorities and generally include community outreach, visioning, and rezoning work to create opportunities for housing. In order to complete these City Council priorities and the Housing Element Programs, staff will be contracting with professional consultants. Consulting costs are to be spread over multiple fiscal years, with $700,000 needed in the first year, Fiscal Year 2023-24.
The estimated total cost for the implementation of this Housing Element Program is $3.0 million. At the June 20, 2023, City Council Meeting, Council approved to transfer $1.5 million from the General Fund into the Housing Authority Fund for the Sixth Cycle General Plan Housing Element Program Implementation.
City Council Goal: Strengthen Public Safety & Improve Quality of Life Fire Station No. 4 Training Tower
The Fiscal Year 2022-23 Adopted Budget included an allocation of $3.6 million for the demolition of the existing training tower at Fire Station 4, and the design and construction of a new regional training tower facility. State grant funds through Assembly Member Cottie Petrie Norris accounts for $2.5 million of the total funding. The cost for the design services and the fabrication and installation of the training tower already awarded by City Council is approximately, $2.75 million. Other items including demolition of the tower, installation of foundations, restroom facilities and water capture system, require an additional $2.4 million, resulting in a shortfall of approximately $1.5 million.
Tennis Center and Golf Course
Costa Mesa Tennis Center and Costa Mesa Country Club need several capital improvements over the next few years. The lighting at the Costa Mesa Tennis Center is currently being upgraded to a Light Emitting Diode (LED) system to achieve better reliability with reduced maintenance and operating costs. Other improvements at the Tennis Center include restroom and pro-shop renovation, shade structure, new court surfacing and concrete improvements. The Costa Mesa Country Club needs improvements to the grounds as well as facilities. Several bunkers and cart paths need replacement and new cart paths are needed for certain areas. The existing Country Club cafe needs significant modernization with better layout, equipment, seating and lighting. The above improvements will enhance the value of these existing City assets.
Prepay 1 Fire Apparatus
The FY 2023-24 Adopted Budget includes an increase to the City’smaster lease agreement for the acquisition of one Pierce 1500 GPM Triple Combination Pumper Truck to replace the existing 2003 American LaFrance Pumper. The cost for the replacement Fire pumper is $1.5 million for the required apparatus and required fixtures. Of the $1.5 million cost, $950,000 will be paid from the CDBG Fund, the balance of approximately $300,000 was initially included through the master lease agreement.
However, in order to comply with the City’s Financial Policy use of operating surplus, it is recommended to reduce the lease by $300,000 and utilize the year-end savings.
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Finance and Pension Advisory Committee (FiPAC)
On September 13, 2023, the Finance Department presented to the Finance and Pension Advisory Committee the estimated surplus estimates and an overview of the City’sfund balance designations and the City’sFinancial Policy. Staff and committee members discussed the projected $4 million or $6 million operating surplus in the General Fund. The committee reviewed and discussed various considered recommendations to the City Council for the potential use of the surplus in order of priority. They used the Financial Policy guidelines and the City Council strategic plan goals to guide them. Finance Policy guidelines state the following three categories for operating surplus:
1. Increase reserves if reserves are below target;
2. Examine opportunities for prepayment and accelerated payoff of debt;
3. Increase funds for capital facilities.
In an effort to assist FiPAC members with their deliberations, staff scheduled a special FiPAC meeting on September 27, 2023 to discuss budgeted and active Capital Improvement Program projects. Public Works Department Director Sethuraman presented to the committee a list of high priority projects, grant projects that are time sensitive, and a list of major projects that are underway and/or scheduled to start.
At the October 11, 2023 FiPAC meeting, staff presented the compilation of projects and designations by each member, and presented the results of the committee members’priorities. The committee discussed the potential use of the projected General Fund surplus. The committee compiled a list based on the City Council’sStrategic Planning Goals, in order of importance, and recommends the following to allocate the estimated operating surplus as seen in the table below:
ALTERNATIVES:
The alternative is that the City Council may choose to refrain from approving the recommended items and otherwise allocate the potential unaudited operating surplus.
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FISCAL REVIEW:
City Council adopted the Fiscal Year 2022-23 Operating and Capital Improvement Budget for a total of $206.2 million in All Funds. Of this amount, the General Fund revenues total $163.6 million and expenditures $163.6 million, a fully balanced budget without the use of reserves or American Rescue Plan Act funds. The FY 2022-23 Preliminary Unaudited Year-End Report provides a projection of the City’sfinancial position for the fiscal year ending June 30, 2023. The preliminary unaudited analysis reflects a potential $4.0 million to $6.0 million surplus at the end of the fiscal year. Staff recommends the above allocations as recommended by FiPAC based on current operating needs and previously expressed City Council priorities.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goals:
· Achieve Long-Term Fiscal Sustainability
· Diversify, Stabilize and Increase Housing to Reflect Community Needs · Strengthen Public Safety and Improve Quality of Life
CONCLUSION:
Staff recommends the City Council:
1. Authorize the City Manager, or her designee, to concur with FiPAC recommendations on the allocation and appropriation of Fiscal Year 2022-23, if available, year-end savings estimated between $4.0 million to $6.0 million in order of priority as follows:
a) Transfer $1.1 million to Fund 401 for the Lions Park Café; b) Transfer $1.5 million to Fund 401 for Fire Station #4 Training Tower; c) Deposit $500,000 (up to $1.0 Million, if available for surplus funds of $6.0 million) to the Workers’ Compensation Fund Balance designation;
d) Transfer $900,000 to Housing Fund 222 for Housing Element and Visioning; e) Transfer $300,000 to Equipment Fund 602 to pay the balance of one Fire Engine Apparatus; and
f) Transfer $1.2 million to Fund 401 for improvements to the City’s Golf Course and Tennis Center.
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1383 Meeting Date: 11/7/2023
TITLE:
LIONS PARK CAFÉ PROJECT
DEPARTMENT: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: SEUNG YANG, P.E., CITY ENGINEER, (714) 754-5633 RECOMMENDATION:
Staff recommends the City Council:
1. Authorize the City Manager and City Clerk to execute Amendment Number Five to the Professional Services Agreement (PSA) with Johnson Favaro, 5898 Blackwelder Street, Culver City, CA 90232, in the amount of $130,250 with a three-year contract extension, and any future amendments.
2. Authorize the City Manager and City Clerk to execute Amendment Number Two to the PSA with STV Construction, Inc., 1055 West Seventh Street, Suite 2900, Los Angeles, CA 90017, in the amount of $226,960 with a three-year contract extension, and any future amendments.
3. Authorize the City Manager to execute Change Order No. 2 to the Purchase Order with Tovey/Shultz Construction, Inc., 18261 Collier Avenue, Unit A, Lake Elsinore, CA 92530, in the amount of $1,929,805, and any future amendments.
4. Create and/or amend the City’sbudget appropriations and allocations in the amounts and funds as needed to effectuate the changes identified above.
BACKGROUND:
On November 17, 2015, a PSA was awarded to Johnson Favaro in the amount of $2,991,287 for architectural and engineering services for the design of The Lions Park Projects located at 1845 and 1855 Park Avenue. Amendment Number One to the PSA was processed on July 30, 2018, providing for a $9,266 increase in compensation for additional security consulting services. Amendment Number Two was processed on January 15, 2019, providing for a $6,600 increase in compensation for additional telecommunications consulting services. Amendment Number Three was processed on April 26, 2019, providing for a $2,200 increase in compensation for design services for a donor recognition plaque system. Amendment Number Four was processed on November 16, 2020, providing for a two-year contract extension through December 31, 2022.
On August 2, 2016, a PSA was awarded to STV Construction, Inc. in the amount of $2,894,056.21 for
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On August 2, 2016, a PSA was awarded to STV Construction, Inc. in the amount of $2,894,056.21 for construction management services related to The Lions Park Projects. On March 24, 2021, Amendment Number One was issued in the amount of $90,000 for additional services to address project delays due to COVID-19 related impacts.
On July 18, 2017, a Public Works Agreement (PWA) in the amount of $28,739,822 was awarded to Tovey/Shultz Construction, Inc. for the construction of The Lions Park Projects. While the Café was designed and was included as an Additive Bid item, the City Council did not award the Café portion of the project. On February 8, 2022, Change Order Number One in the amount of $209,562.50 was issued to implement the Community Center Capri Courtyard concrete, electrical, lighting, landscaping, and irrigation improvements.
The project site encompasses the Donald Dungan Library, the Norma Hertzog Community Center (NHCC), the Lions Park Event Lawn, and the area between the Costa Mesa Historical Society Building and Anaheim Avenue.
The improvements to Lions Park included the demolition of the pre-existing Neighborhood Community Center (NCC); construction of a new, two-story, 24,000 square foot (SF) LEED Gold library, and renovation of the pre-existing library to be repurposed as the new, 9,000 SF LEED Gold Norma Hertzog Community Center. Construction also included the new Lions Park event lawn, parking lot improvements, storm drain improvements, landscape and irrigation improvements, and off -site street improvements to Park Avenue and Anaheim Avenue.
Phase One of the project consisting of the demolition of the NCC, construction of the new Donald Dungan Library, and the event lawn was completed in May of 2019.
Phase Two of the project consisting of the renovation of the new NHCC was completed in November of 2020.
The City is in receipt of the $1.2 million American Rescue Plan Act (ARPA) Grant Fund to construct the Café Building as the third phase of the project. Rendering and layout of the Lions Park Café as originally designed are included in Attachment 1.
ANALYSIS:
In order to implement Phase Three of The Lions Park Projects, project plans and specifications for the Café Building previously designed by Johnson Favaro are required to be updated to comply with the 2022 California Building Code (CBC) and submitted for Orange County Health Department approval.
Johnson Favaro has submitted an amendment request (Attachment 2) in the amount of $130,250 to update the project plans to meet the new 2022 CBC, obtain Building Division and Health Department approvals, and provide engineering support services during construction, responding to requests for information, changes in scope due to material availability and site constraints, reviewing submittals, conducting site visits, and producing as-built plans. Johnson Favaro will be providing full structural, mechanical, electrical, plumbing, landscaping, lighting, food service/kitchen, information/technology, and security design support.
STV Construction, Inc., has submitted an amendment (Attachment 3) request in the amount of
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STV Construction, Inc., has submitted an amendment (Attachment 3) request in the amount of $226,960 for construction management services. Services include inspection to ensure compliance with project plans and specifications, coordination with utility agencies and project stakeholders, change order review and recommendation, on-site project coordination, document control, quality management, and building commissioning.
Tovey/Shultz Construction, Inc., has submitted a change order request (Attachment 4) for the construction of the Café Building in the amount of $1,929,805. The Café Building is designed to be approximately 1,000 square feet and includes a food storage and service area, concession counter, food preparation area, equipment and washing area, restroom, electrical room, storage room, and associated utility construction.
The total cost of design, construction management and construction for the Lions Park Café is now estimated at approximately $2.3 million, exceeding the $1.2 million allocation received through Supervisor Katrina Foley from County American Rescue Plan Act (ARPA) funds. Staff requests City Council authorization to appropriate $1.1 million from prior fiscal-year surplus funds. The Finance, Investments, and Pension Advisory Committee (FiPAC) Staff will also work with the design consultant to conduct Value Engineering to determine ways to reduce costs as well scope of the project to lower the funding shortfall.
ALTERNATIVES:
The Council could direct staff to solicit services from new firms to design and construct the Lions Park Café Building. However, this action is not recommended as the current firms have an in-depth knowledge of the existing site, design and construction parameters, and firsthand experience with the design and construction of Phases 1 and 2 of the project. Soliciting new firms would also greatly impact the project schedule and cost.
Another alternative could be to redesign the site entirely with a reduced scope of work, footprint, and alternative building materials. This will require a complete re-design of the Café project, modification of utility stub-outs, and extended duration for project implementation. The actual cost savings, if any, cannot be determined.
The final alternative is to cancel the project and return the County ARPA funding of $1.2 million. This will require the restoration of the Lions Park area by eliminating the stub-outs and creating space for temporary food trucks. Staff estimates that approximately $200,000 is needed to clear all obstructions, remove existing fencing, and provide a food truck area.
FISCAL REVIEW:
This project has an existing allocation of $1.2 million through County ARPA funds. Additional funding allocation of $1.1 million from General Fund surplus monies for the fiscal year ended June 30, 2023 is being requested to fund the remainder of the project.
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LEGAL REVIEW:
The City Attorney’s Office has reviewed this agenda report and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goals:
· Strengthen the Public’s Safety and Improve the Quality of Life · Maintain and Enhance the City’s Facilities, Equipment and Technology CONCLUSION:
Staff recommends the City Council:
1. Authorize the City Manager and City Clerk to execute Amendment Number Five to the PSA with Johnson Favaro, 5898 Blackwelder Street, Culver City, CA 90232, in the amount of $130,250 with a three-year contract extension, and any future amendments.
2. Authorize the City Manager and City Clerk to execute Amendment Number Two to the PSA with STV Construction, Inc., 1055 West Seventh Street, Suite 2900, Los Angeles, CA 90017, in the amount of $226,960 with a three-year contract extension, and any future amendments.
3. Authorize the City Manager to execute Change Order No. 2 to the Purchase Order with Tovey/Shultz Construction, Inc., 18261 Collier Avenue, Unit A, Lake Elsinore, CA 92530, in the amount of $1,929,805, and any future amendments.
4. Create and/or amend the City’sbudget appropriations and allocations in the amounts and funds as needed to effectuate the changes identified above.
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ATTACHMENT 1
Lions Park Café Building Rendering and Layout
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New Donald Dungan Library, Neighborhood Community Center and Park Improvements Project – Café Kiosk
PROJECT SCOPE
The Project, located in Lions Park, includes the vertical construction of a new 1, 00 SF Café Kiosk and site improvements to include new decking.
CAFÉ KIOSK
The Project includes vertical construction of the new 1,000-1,200 SF Café Kiosk, which is a snack and beverage service kiosk to serve the park and all facilities in the park.
The site improvements include approximately 1,100 SF of new wood decking along the south side of the kiosk.
BASIC DESIGN SERVICES
The Consultant as Architect-of-Record will manage an d coordinate all design and document preparation tasks through the phases identified below. The Consultant shall provide the services of external sub-consultants, or professional expertise from its own staff in at least the following disciplines:
• Structural Engineering
• Mechanical, Electrical & Plumbing Engineering
• Landscape Architecture
• Lighting Design
• Food Service/Kitchen Design
• Information/Technology- Data Telecom
• Obtaining Health Department Permit
REPACKAGE CONSTRUCTION DOCUMENTS
1. Drawings and specifications will need to be repackaged into a permittable and biddable set. The Consultant shall prepare Café Kiosk Construction Documents consisting of drawings and other documents setting forth in detail the requirements for construction of the Project. The Consultant shall prepare complete drawings and specifications as are necessary for obtaining a Building Permit under CBC 2022, developing complete bids for the Café Kiosk, and for properly executing the Project work. Café Kiosk Drawings and Specifications shall set forth in detail all of the following: 1) the Project construction work to be done; 2) the materials, workmanship, finishes, and equipment required for the Project; and 3) the utility service connection equipment and site work.
2. The Café Kiosk Construction Documents and Specifications must be in such form as will enable the Consultant and the City to secure the required permits and approvals from the Building Department and Health Department under CBC 2022.
1 PROJECT SCOPE
The P roject, located in Lions Park, includes the vertical construction of a new approximately 1,100 SF Café Kiosk and site improvements to include new decking.
CAFÉ KIOSK
The Project includes vertical construction of the new approximately 1,100 SF Café Kiosk, which is a snack and beverage service kiosk to serve the park and all facilities in the park. The site improvements include approximately 1,100 SF of new wood decking along the south side of the kiosk.
The P roject, located in Lions Park, includes the vertical construction of a new approximately 1,000 SF Café Kiosk and site improvements to include new decking.
CAFÉ KIOSK
The Project includes vertical construction of the new approximately 1,000 SF Café Kiosk, which is a snack and beverage service kiosk to serve the park and all facilities in the park.The site improvementsinclude approximately 1,100SF of new wood decking along the south side of the kiosk.
ATTACHMENT 2
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PERMITS AND REBIDDING
1. The City, with input and assistance from the Consultant, shall develop the documents describing Contract, General Conditions, Supplementary General Conditions, Special Conditions, other necessary conditions of the contract, Division One of the Project Manual (i.e. City standards for construction, specifications, and the contract), Sample Forms, prequalification requirements and forms, and any other certifications and documents required by laws, rules and regulations which may be reasonably required in order to obtain General Contractor bids responsive to the Construction Documents. Excluded work in this phase includes development and preparation of: 1) bidding and procurement information which describes the time, place and conditions of bidding; bidding or proposal forms and 2) the Conditions of the contract for Construction (General, Supplementary and other Conditions).
2. Upon completion of Café Kiosk Construction Documents, they shall be submitted to the appropriate federal, state, regional or local permitting agencies concerned with the Project.
3. Upon incorporation of permitting agency comments the Consultant shall schedule a back-check review with the permitting agency. Any back check changes required by the permitting agency shall be incorporated into the Construction Documents.
4. During the Café Kiosk Bidding Process, the Consultant shall respond to requests for information or clarification. The Consultant shall respond only to questions or requests for clarifications concerning the Construction Documents that are submitted by the City or the Contractor. Any such questions or requests for clarifications from bidders must be submitted through the City/Contractor.
5. The Consultant shall prepare for Café Kiosk any required addenda to the Construction Documents in the City’s format for approval and distribution by the City.
CONSTRUCTION ADMINISTRATION PHASE
1. All Construction Administration services identified below are provided for the Café Kiosk.
2. The Consultant shall provide general administration of the Construction Documents and the work performed by the Contractor and Sub-contractors.
The Consultant shall observe work executed from the Construction Documents.
3. The Consultant shall provide services during the Construction Phase under management and oversight of the City’s Project Manager (PM) for the Project.
4. All Consultant communication with the contractor during Bidding and Construction Phases shall be through the PM.
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5. The Consultant shall review the project schedule, schedules of shop drawing submittals and schedules of values prepared by the construction contractor and consult with the PM concerning their acceptability.
6. The Consultant shall review and provide responses to Requests for Information (RFI) prepared by the construction contractor and consult with the PM concerning their acceptability when appropriate.
7. The Consultant shall conduct site visits to observe each contractor’s work for general conformance with the Construction Documents and with any approved construction schedules or milestones. Such visits shall be conducted weekly or as often as are necessary and appropriate to the stage of construction. Such visits may be in conjunction with the Project’s construction meetings.
8. The Consultant shall cause all architects, engineers and other consultants, as may be hired by the Consultant or City, to observe the work completed under their disciplines as required and approve and review all test results for general conformance with the Construction Documents.
9. The Consultant shall attend all construction meetings and confirm written reports/minutes produced by the PM after each construction meeting in order to keep the City informed of the progress of the work. Such meetings shall occur at a frequency necessary for the progress of the Project work, according to the PM’s sole discretion, but no less than weekly.
10. The Consultant shall make written reports to the PM as necessary to inform the PM of problems arising during construction, changes contemplated as a result of such problems and progress of the Project work. The Consultant shall not have control over the acts or omissions of the contractors, subcontractors or their agents or employees, or of any other persons or entities performing or supplying portions of the work which were not employed or hired by the Consultant.
11. The Consultant shall review, process, and approve all submissions for compliance with the Construction Documents and respond to such submissions in a timely manner to not delay the progress of the schedule or construction work. The Consultant’s review and response shall be done in such a manner to ensure the timely and uninterrupted progress of the Project work.
12. The Consultant shall evaluate and advise the PM of any Change Requests and material change(s) which may be requested or necessary in the Project plans and specifications. The Consultant agrees to comply with the PM’s change request process and shall provide the PM with its opinion as to whether such change requests should be approved.
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13. The Consultant, upon request by the City or City’s representative, shall examine and provide feedback on the construction contractor’s application for payment based on the Consultant’s observations at the site. Such certification for payment shall not be a representation that the Consultant has: 1) made exhaustive or continuous on-site inspections of the work for which payment is sought; 2) reviewed construction means, methods, techniques, sequences or procedures for the work for which payment is sought; 3) ascertained how and for what purpose the contractor has used money previously paid; or 4) certified that the work for which payment is sought is without defects.
14. The Consultant shall determine the date of substantial completion, in consultation with the PM, and complete and submit the appropriate form to the PM.
15. After determining that the Project is substantially complete, the Consultant shall participate in the inspection of the Project and shall prepare a Punch List of all remaining deficiencies and minor items needed to be corrected or completed on the Project. The Consultant shall notify the PM of all Punch List Items.
16. The Consultant shall cause all other architects, engineers, and other consultants, as may be hired by the Consultant, to file any and all required documentation with governmental authorities necessary to close out the Project. The Consultant shall assist the PM in obtaining such documentation from all other architects, engineers, or other consultants.
PROJECT CLOSE-OUT PHASE
1. All Project Close-out Phase services identified below are provided for the Café Kiosk.
2. The Consultant shall incorporate all RFI, Addenda and Bulletins and Contractor as-built files into the Construction Documents and issue BIM digital files authored in an approved software application, as described by the City BIM Standards. Graphic Design/Signage Design document files shall be delivered as Illustrator files and in PDF format only.
3. The Consultant shall review the Contractor furnished as-built files for completeness.
4. The Consultant shall review all warranties, guarantees and final close-out material provided by the contractor and sub-contractors.
5. The Consultant shall cause all other engineers and other consultants, as may be hired by the Consultant to file any and all required documentation with all governmental agencies necessary to close out the Project. 417
AUTHORIZED ADDITIONAL SERVICES
1. The Consultant shall consult with additional specialists during the foregoing phases to the extent necessary. The fees for all consultants in those areas as required are included in Authorized Additional Services. The fees for required Additional Services of the above, beyond the scope of this project as described here, and as requested by the City shall be paid directly by the City and any coordination required by the Consultant shall be billed as Additional Services.
2. The Consultant shall bill as Additional Services all work that is the result of a substantial change directed by the City, that necessitates going back to, or repeating a part of or the entirety of any phase already approved and complete. Preparation of documents, applications, and/or other time spent on obtaining variances, or easement adjustments shall be billed as Additional Services.
3. Additional Services may be authorized by the City. If authorized, such Additional Services and Reimbursable Expenses associated with the Additional Services will be compensated at the rates and in the manner set forth in “Basis of Compensation” below, unless a flat rate or some other form of compensation is mutually agreed upon by the parties.
4. Additional Services mean 1) any work or Services which is determined by the City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary for the Consultant to perform at the execution of this Agreement; 2) revisions in Drawings or Specifications or other documents when such revisions are caused by conflicts to previously issued instructions of the City; 3) additional Drawing, Specification or document preparation and/or administration of work on portions of the Project separately bid; or 4) any work listed as Additional Services.
GENERAL REQUIREMENTS
1. Project fees for this Project are based on Design/Bid/Build project delivery.
2. The City may be requested to supply the Consultant with the necessary information to determine the proper location of all improvements on and off site, including existing record drawings in the City’s possession. The Consultant will make a good-faith effort to verify the accuracy of such information by means of a thorough survey of site conditions.
3. The City will provide existing record drawings and provide any supplemental information to the Consultant which is available. The Consultant shall not be responsible for the accuracy of the information or existing record drawings, except to the extent that any inaccuracy should have reasonably been detected by the Consultant, pursuant to its standard of care and visual observation of existing conditions.
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4. The Consultant and the Consultant’s consultants shall have no responsibility for the discovery, presence, handling, removal, or disposal of or exposure to hazardous materials or toxic substances in any form at the Project site.
5. All plans, specifications, original or reproducible transparencies of working drawings, preliminary sketches, architectural presentation drawings, structural computations, estimates and any other Project Documents prepared pursuant to this Agreement shall be and remain the property of the City. Although the official copyright in all Project Documents shall remain with the Consultant or other applicable subcontractors or consultant, the Project Documents shall be the property of the City whether or not the work for which they were made is executed or completed. Within thirty (30) calendar days following completion of the Project, the Consultant shall provide to the City copies of all Project Documents required by the City. In addition, Consultant shall retain copies of all Project Documents on file for a minimum of seven (7) years following completion of the Project, and shall make copies available to the City upon the payment of reasonable duplication costs. Before destroying Project Documents following this retention period, Consultant shall make a reasonable effort to notify the City and provide the City with the opportunity to obtain the documents.
6. The Consultant grants to the City the right to use and reuse all or part of the Project Documents, at the City’s sole discretion and with no additional compensation to the Consultant, for the following purposes: A) The construction of all or part of this Project; B) The repair, renovation, modernization, replacement, reconstruction or expansion of this Project at any time; C) The construction of another project by or on behalf of the City for its ownership and use. The City is not bound by this Agreement to employ the services of the Consultant in the event such documents are used or reused for these purposes. The City shall be able to use or reuse the Project Documents for these purposes without risk of liability to the Consultant. The use or reuse of the Project Documents for these purposes shall not be construed or interpreted to waive or limit the City’s right to recover for latent defects or for errors or omissions of the Consultant for the Project.
7. Any use or reuse by the City of the Project Documents on any project other than this Project without employing the services of the Consultant shall be at the City’s own risk and liability with respect to third parties. If the City uses or reuses the Project Documents on any project other than this Project, it shall remove the Consultant’s architect seal from the Project Documents and indemnify and hold harmless the Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Project Documents on such other project. The Consultant shall not be responsible or liable for any revisions to the Project Documents made by any party other than the Consultant, a party for which the Consultant is legally responsible or liable, or anyone approved by the Consultant. 419
8. This Agreement creates a non-exclusive and perpetual license for the City to copy, use, modify or reuse any and all Project Documents and any intellectual property rights therein. The Consultant shall require any and all subcontractors and consultants to agree in writing that the City is granted a non-exclusive and perpetual license for the work of such subcontractors or consultants performed pursuant to this Agreement.
9. The Consultant represents that the Consultant has the legal right to license any and all copyrights, designs and other intellectual property embodied in the Project Documents that the Consultant prepares or causes to be prepared pursuant to this Agreement. The Consultant makes no representation and warranty in regard to previously prepared designs, plans, specifications, studies, drawings, estimates or other documents that were prepared by design professionals other than the Consultant and provided to the Consultant by the City.
10. Upon 100% completion of the Construction Documents and Specifications, the Consultant shall provide the City with one hardcopy for reproduction.
11. The Consultant shall provide coordinated Construction Document level BIM digital files authored in an approved software application. BIM files are to be used by the Contractor in developing 4D and 5D technology and processes, shop drawings, coordination drawings and as-built drawings for this project. The Consultant is responsible for running clash detections as needed to ensure proper coordination between the Consultant and Sub-Consultants.
Specifications shall be provided in Microsoft Word format. Graphic/Signage Design documents shall be provided as Illustrator and PDF files only.
Acceptance of these electronic files constitutes acknowledgement of the conditions of this agreement between the Consultant and the City.
12. The Consultant is providing, by agreement with the City, materials stored electronically. The parties recognize that data, plans, specifications, reports, documents, or other information recorded on or transmitted as electronic media (including but not necessarily limited to “CAD documents” and “BIM”) are subject to undetectable alteration, either intentional or unintentional, due to, among other causes, transmission, conversion, media degradation, software error, or human alteration. The signed and/or stamped hard copies of the Architect’s Instruments of Service are the only true contract documents of record.
CITY’S OBLIGATIONS
1. The City shall provide the Consultant prior to the project start date confirmation of Project Schedule and Project Budget.
2. City’s responsibilities shall include 1) retaining consultant(s) to conduct materials testing and inspection or to conduct any other environmental or hazardous materials testing and inspection pursuant to any other applicable laws, rules or regulations; 2) pay or reimburse the payment of all fees required by any reviewing or licensing agency, or other agency having approval 420
jurisdiction over the Project; and 3) designate a person(s) to act as representative for the performance of this Agreement (City’s Representative).
3. The City’s Representative shall render decisions in a timely manner so as to avoid unreasonable delay in the orderly and sequential progress of services.
RESPONSIBILITY FOR CONSTRUCTION COST
1. No cost estimating services are included with this proposal.
BASIS OF COMPENSATION
Based on the Scope of Work and Services defined above, Johnson Favaro and its consulting team propose a Professional Services Lump Sum Fee and Hourly Rate per Table 1 below. The fee will be billed monthly in proportion to the work completed.
For a Fee Summary by Consultant, see Table below:
POSITION HOURLY RATE
(USD) LUMP SUM FEE
No Cap $41,500
Principal Architect $250
Associate Principal $200
Senior Design Principal $180
Design Associate $150
Designer $140
Junior Designer $120
Administration $120
No Cap $12,500
Chief Executive Officer $325
Principal $280
Senior Vice President $275
Vice President $270
Senior Project Manager $250
Senior Consultant $240
Senior Project Engineer $225
Project Engineer $200
Senior Designer $160
Designer $150
Engineering Coordinator $125
Senior BIM/CAD Coordinator $125
BIM/CAD Coordinator $165
Project Accounting $100
PROFESSIONAL SERVICES FEE- LIONS PARK CAFÉ KIOSK
HOURLY RATES & LUMP SUM FEE SUMMARY BY CONSULTANT
Architecture
Structural Engineering
421
No Cap $11,600
Principal $225
Engineer $195
Project Manager $185
Sr. Designer $160
Designer $140
CAD Drafting $100
Clerical $80
No Cap $2,800
Principal $200
Engineer $175
Project Manager $165
Sr. Designer $140
Designer $120
CAD Drafting $90
Clerical $70
No Cap $4,900
Principal $220
Senior Designer $195
Associate Designer $165
Designer $120
No Cap $27, 0
President $385
Partner $300
Principal $265
Director $240
Associate Director $225
Senior Associate / Studio Leader $210
Associate / BIM Manager $195
Project Designer $185
Designer $170
Intern $135
Clerical $90
Not to Exceed Lump Sum Fee $9,500
Designer $240
Project Management $240
CAD/Revit Drafting $135
Administration $95
$750
No Cap $11,700
Principal, Director $290
Project Consultant $220
Designer $200
CAD/BIM Support $130
$10,000
$13 ,750REPACKAGE, REPERMIT, REBID, & CA SERVICES TOTAL Mech. & Plumb Engineering
Lighting
Electrical Engineering
Landscape Architecture
*Unforeseen Conditions Allowance
Directed by the City
Information Technology/Audiovisual
*Plan Check Fees for Health Permit
Food Service
5 5
0 0
11 32,
32,
50 $29
3 422
REIMBURSABLES
The City shall reimburse the Consultant a sum for its reasonable out-of-pocket expenses that are incurred and paid for by the Consultant in furtherance of performance of its obligations under this agreement. Reimbursables are included in the Fee for Basic/Authorized Additional Services. The categories of expenses include:
▪ Printing and reproduction costs
▪ Shipping, overnight mail, postage, messenger and other handling of drawings and documents.
▪ Long distance telephone calls outside of the 213, 310, 562, 626, 323, 714, 949, 951 and 909 area codes.
▪ Renderings and special presentation models other than specified in the Proposal requested by the City.
▪ Additional Consultants not considered a part of Basic Services ▪ Fees paid to third parties for securing approval of authorities having jurisdiction over the project.
PRELIMINARY PROJECT SCHEDULE
Exact schedule to be determined.
The Consultant shall advise the City of any adjustments to the preliminary project schedule. Evaluation of the project schedule as well as subsequent estimates of the project schedule prepared by the Consultant, represent the Consultant’s best judgment as a design professional familiar with community planning, design and construction. It is recognized, however, that the Consultant has no control over the performance of the City, the City Project Manager, the City of Costa Mesa Building Department or the general contractor in adhering to the project schedule. Accordingly, the Consultant cannot and does not warrant or represent that the project schedule will not vary from that represented herein, nor from any schedule estimate or evaluation prepared or agreed to by the Consultant.
EXCLUSIONS
1. Material testing
2. Hazardous materials abatement scope related to survey of existing conditions, drawings, reports, documents and or specifications.
3. Methane extraction systems
4. Off-site public improvements, not described in this Proposal including adjoining street widening.
5. Planning for Interim Housing or relocation drawings/diagrams
6. Physical presentation models
7. Partnering Workshops
8. Additional cost estimates or revisions to completed cost estimates
9. Design/Coordination of a Distributed Antennae System (DAS)
10. Ordering Cable or Satellite TV service
11. Design of the Telco utilities
12. Permitting through the City of Costa Mesa
13. LEED services
14. Cost estimating services
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ADDITIONAL SERVICES
Additional Services shall be provided if authorized or confirmed in writing by the Client.
These services shall be subject to an additional fee. Unless otherwise agreed prior to the work being carried out, our fees for any additional services will based on time expended at our normal billing rates prevailing at the time the work is carried out.
Additional Services will be billed on an hourly basis at the rates shown below:
Principal Architect $250
Associate Principal $200
Senior Design Principal $180
Design Associate $150
Designer $140
Junior Designer $120
Administration $120
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June 9, 2023
Attn: Mr. Arash Rahimian, P.E.
Senior Engineer
City of Costa Mesa, CA 92626
Re: Construction Management Support Services for Costa Mesa Lions Park Café Building Proposed Sr. PM – James H. Adams, AIA/CCM
Mr. Rahimian,
STV is pleased to submit to the City of Costa Mesa Public Works Department our lump sum cost proposal with respect to providing on-site pre-construction coordination, construction management, and inspections during the construction and closeout phases for the Lions Park Café Project. This effort will be led by Mr. James Adams serving as our Sr. Project Manager and functioning as the City’s Construction Manager and Owner’s Representative who will report directly to you.
STV to provide the on-site construction management and inspections at 20 hrs./wk. for approximately One Year.
FEE PROPOSAL
Basic Services Compensation
STV proposes to provide a part-time, 20 hours/week, Sr. Project Manager to serve for a 12-month period. The fee is based on 20 hours per week at $199.00/hour plus an allowance in the amount of $20,000.00 to be directed by the City for additional services due to unforeseen circumstances for a total Fee of $226,960.00 which will be billed monthly.
Hourly Rates
Our Basic compensation is based on the following hourly:
Name / Role Hourly Rate Weekly Total 12-Month Total
James Adams
Sr. Project Manager $199 / Hour $3,980.00/Weekly & Billed Monthly
$206,960.00
Contingency Allowance
Unforeseen Circumstances Contingency Allowance $20,000.00 Total Fee Amount – Not to Exceed $226,960.00
Please review the above as well as the Exhibit A – Statement of Work below and feel free to call or email me directly if you have any questions regarding our cost proposal. We are excited and ready to provide the City of Costa Mesa with the support that I know our team can provide. Thank you again for the opportunity and I look forward to hearing from you soon.
Sincerely,
STV Construction, Inc.
James H. Adams AIA/CCM for Dave Watson
Sr. Project Manager VP - Western Region Director| Construction Management Division ATTACHMENT 3
1 425
Exhibit A - Statement of Work (“SOW”)
Construction Management and Inspections
for
Lions Park Café Project
1. Description of Services
Pursuant to and in conformance with any standards, guidelines and/or specifications which may be provided by the City of Costa Mesa (City) to STV from time to time, STV will perform or deliver to the City under the Agreement as a work made for hire (collectively, the “Services”).
Objectives of the Services to be Performed which may be actually on site or by Virtual methods:
• Provide part- time on-site augmented project management services to supplement City’s in-house project management support on the construction, inspections and close-out for the Lions Park Café Building Project.
• Work with a safety mindset, review the project safety plan and provide project oversight while collaborating with the General Contractor’s (GC) Safety Manager. • Manage General Contractor (GC) to their Statement of Work, including management oversight of schedules, pay applications and deliverable timelines.
• Review, track, and catalogue documentation (RFIs, Submittals, etc.) provided by the GC and processed by the Architect.
• Review Contractual documents, drawings, technical specifications, and process documentation against the project requirements to confirm compliance. • Ensure construction complies with contract documents. • Coordinate construction activities with utility agencies and park stakeholders. • Chair and minute weekly project status meetings, or as necessary, to document the status of the project, provide updates to action items, and schedule updates. • Review and provide recommendations on quotes/proposals/change orders. • Evaluate current content and develop innovative approaches for improvement. • Review GC close out package (which should include but not limited to warranty information, as- builts and QC reports).
• Review and track permitting requirements and submission. • Provide weekly project status reports to the City and Monthly summaries as required.
2. Start of Services
• STV may begin Service delivery only later of: (a) issuance of Notice to Proceed (b) when STV receives the applicable Purchase Order from the City.
3. Payment
3.1 Services Fees
• The City of Costa Mesa will pay STV hourly rates as full and final payment for the Services. The City will only make payment for Services that STV has completed and delivered to the City, and that the City has accepted.
END of EXHIBIT A
2 426
Owner: City of Costa Mesa Date:
Project Name: Lions Park Project Project Number:
To: Arash Rahimian Change Request: 273
Description of Work:
A. Subcontractor Costs:
-$
B. Subtotal Subcontractor Costs: -$
C. General Contractor OH&P - % of Item B -$
D. Subtotal - Subcontractor Costs -$
E. General Contractor's Costs:
1. Material & Equipment:
TSCI (Breakdown attached) 1,929,805.00$
2. Labor:
Supervision Hours @ -$
General Labor Hours @ -$
F. Subtotal - General Contractor's Cost 1,929,805.00$
G. General Contractor's OH&P % -$
H. Subtotal General Contractor Costs 1,929,805.00$
I. Subtotal All Costs 1,929,805.00$
J. Liability Insurance -$
K. Bond 1% -$
L. Added days for time extension:
M. TOTAL 1,929,805.00$
Project Manager 6/15/2023
Contractor Signature Title Date
Owner Signature Title Date
Change Request
6/15/2023
17-1578
This Change Request is for the Cost to Build the "Café Building". This includes all MEP's, Structural and Kitchen Equipment.
18261 COLLIER AVE.
UNIT A
LAKE ELSINORE. CA
92530
________
PH 951 471 5677
PROJECT MANAGEMENT/
GENERAL
F 951 639 6070
ACCOUNTING
F 951 471 5345
________
STATE LIC. NO 549838
ATTACHMENT 4
1 427
Description
General Conditions $200,000
Temporary Fencing $2,000
Final Clean Up $2,000
Site Clean Up $1,000
Plan Check by owner
Permits by owner
City License $350
Tests & Inspections by owner
Rough Carpentry $77,900
Ipe deck budget $110,300
Roofing $43,800
Building Insulation $4,950
Glass and glazing $88,000
Sheet metal, coping, scuppers, downspouts $21,406
Doors, frames and hardware $22,200
Saino door $38,398
Installation of Saino door $8,000
Gyp board inc with plaster
Plaster $160,000
FRP $5,757
Acoustic Ceiling $13,275
Ceramic Tile $16,993
Epoxy flooring $10,800
Paint $20,877
Concrete sealer $500
Toilet Accessories $2,375
Signage $25,100
Fire Extinguishers and Cabinets $2,000
Knox Box $750
Restroom Mirrors $500
Kitchen Equipment $151,265
Site Furnishings $20,000
Sprinklers NIC
Plumbing $110,500
Gas underground allowance $25,000
HVAC $106,800
Controls $28,000
Electrical $148,753
Fire alarm $30,000
Security $5,004
grading and hauling inc with concrete
Exterior concrete $35,000
Landscape modifications $15,000
Builders Risk $7,500
Subtotal $1,562,053
OH&P $156,205
Liability 1.25% $24,123
Total $1,742,381
Bond 1% $17,424
Total $1,759,805
Allowance for unforeseen conditions $170,000
TOTAL WITH CONTINGENCY $1,929,805
Lions Cafe Building Change Order Breakdown - 6.14.23 final (2) 2 428
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1426 Meeting Date: 11/7/2023
TITLE:
REQUEST FOR CITY COUNCIL DIRECTION REGARDING THE POTENTIAL PREPARATION OF
A MORATORIUM AND/OR OTHER ALTERNATIVE PROCEDURE TO DISCONTINUE OR
SUSPEND ACCEPTANCE AND PROCESSING OF CANNABIS RETAIL APPLICATIONS DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES
DEPARTMENT/PLANNING DIVISION
PRESENTED BY: JENNIFER LE, DIRECTOR OF ECONOMIC AND
DEVELOPMENT SERVICES
CONTACT INFORMATION: JENNIFER LE, DIRECTOR OF ECONOMIC AND DEVELOPMENT SERVICES, (714) 754-5270
RECOMMENDATION:
Staff recommends the City Council provide direction regarding the potential preparation of a moratorium and/or other alternative procedure to discontinue or suspend acceptance and processing of cannabis retail applications.
429
City of Costa Mesa
Agenda Report
77 Fair Drive Costa
Mesa, CA 92626
Item #: 23-1426 Meeting Date: 11/07/2023
TITLE:
REQUEST FOR CITY COUNCIL DIRECTION REGARDING THE POTENTIAL PREPARATION OF
A MORATORIUM AND/OR OTHER ALTERNATIVE PROCEDURE TO DISCONTINUE OR
SUSPEND ACCEPTANCE AND PROCESSING OF CANNABIS RETAIL APPLICATIONS
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING
DIVISION
PRESENTED BY: JENNIFER LE, DIRECTOR OF ECONOMIC AND DEVELOPMENT SERVICES
CONTACT INFORMATION: JENNIFER LE, DIRECTOR OF ECONOMIC AND DEVELOPMENT SERVICES, (714) 754-5270
RECOMMENDATION:
Staff recommends the City Council provide direction regarding the potential preparation of a moratorium and/or other alternative procedure to discontinue or suspend acceptance and processing of cannabis retail applications.
BACKGROUND:
On November 3, 2020, Costa Mesa voters approved Measure Q, the Costa Mesa Retai l Cannabis Tax and Regulation Measure. This measure allowed the City to adopt regulations permitting cannabis storefront retail (dispensaries) and non -storefront retail (delivery) within the City subject to certain requirements. On June 15, 2021, the City Council adopted Ordinances No. 21 -08 and No. 21 -09 to amend Titles 9 and 13 of the CMMC to establish regulations for legal cannabis storefront and non- storefront (delivery) businesses. The Ordinances are linked below:
Ordinance No. 2021-08 (Title 9, Business Licenses);
Ordinance No. 2021-09 (Title 13, Zoning).
The Ordinances establish standards, regulations and permitting requirements for cannabis retail businesses.
430
Item #: 23-1426 Meeting Date: 11/07/2023
On September 5, 2023, the City Council provided direction to staff on a 7 -0 vote to work with the City’s Planning Commission to explore various amendments to the existing Cannabis Ordinance to reduce business displacement and potential overconcentration of cannabis retail businesses, among other items. Depending on data obtained regarding these items, staff would work with the Planning Commission to develop options, recommendations and/or an ordinance amendment to address those issues. The Planning Commission would make a recommendation to the City Council, as the City Council is the final decision-making body.
The City Council directed staff to compile information and prepare recommendations related:
Establishing a minimum separation between cannabis storefronts Increasing the minimum separation between cannabis storefronts and youth centers, as defined in the CMMC, from 600 feet to 1,000 feet to be consistent with other sensitive use separations Establishing a minimum separation between residential zoning districts and cannabis storefronts Adding limitations to prohibit the marketing of cannabis and cannabis products to youth Establishing a maximum number of retail cannabis businesses Establishing bonafide labor peace agreement requirements for cannabis storefronts Allowing the word “cannabis” on signage in the City
Considering the establishment of provisions for notification and relocation fees for existing businesses that would be displaced by retail cannabis uses.
Initial discussions with the Planning Commission on these topics are anticipated for November 2023.
At the October 3, 2023 City Council meeting, Councilmember Harper requested an item be agendized to discuss the possibility of adopting a morat orium to temporarily suspend cannabis retail permit processing while staff completes potential amendment s to the City’s cannabis retail regulations. Council Members Manuel Chavez and Andrea Marr concurred with that request.
ANALYSIS:
Potential Moratorium
Government Code Section 65858 provides the authority to adopt urgency measure interim ordinances, commonly referred to as moratoria. A moratorium requires a four -fifths vote of the entire seven-member Council for adoption and is in effect for 45 days. Ten days prior to the expiration of the moratorium the City Council is required to issue a written report describing the measures taken to alleviate the condition which led to the adoption of the moratorium. Thereafter, the Council may then extend the moratorium for 10 months and 15 days, and subsequently extend the interim ordinance for an additional one-year period. Any extension also requires a four -fifths vote for approval. Not more than two extension s may be adopted.
In order to approve a moratorium, the City Council must find that :
“there is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building perm its, or any other applicable entitlement for use which is required in order to comply with a zoning ordinance would result in that threat to public health, safety, or welfare” (Government Code section 65858(c)).
431
Item #: 23-1426 Meeting Date: 11/07/2023
If the Council direct s staff to prepare a moratorium, staff would work with the City Attorney’s Office to bring the moratorium for Council consideration at its next regular meeting , scheduled to be on December 5th with the written report referenced in the aforementioned Government Code for adoption by the City Council, along with the extension of the moratorium for a temporary specified period of time (if desired).
Resolution Pursuant to Municipal Code Section 9-486 (d)
An alternative to the moratorium is to adopt a Resolution pursuant to the Costa Mesa Municipal Code. Municipal Code Section 9-486(d) states: “The city council may by resolution limit and/or restrict the number of cannabis retail permits available for issuance and/or renewal”.
Pursuant to this section, and in response to concerns previously raised by the City Council regarding business displacement and overconcentration, the Council may limit the number of Cannabis Business Permits issued for retail by the adoption of a Resoluti on. The adoption of a Resolution requires approval by a majority vote of the quorum of the City Council.
Status of Cannabis Retail Applications
For background, a pplicants must complete the following steps and receive City approvals and State approval before conducting a legal cannabis retail business in Costa Mesa:
Pre-Application Determination;
Cannabis Business Permit (CBP) Notice to Proceed to submit a Conditional Use Permit application;
Conditional Use Permit (CUP) approval;
Building Permit(s) Issued;
Final City Inspections and Building Permit Final/Certificate of Occupancy Issued; CBP Issuance; and
City Business License
432
Item #: 23-1426 Meeting Date: 11/07/2023
Storefronts
The City has 53 cannabis retail storefront applications on file.
Of those, 22 Conditional Use Permits have been approved. Of the 22 CUPs approved, nine are open and operating at the following locations:
1990 Harbor Blvd (420 Central) – Issued November 22, 2022 2801 Harbor Blvd (Off The Charts) – Issued May 8, 2023 2710 Harbor Blvd (Stiiizy) – Issued May 10, 2023
2275 Newport Blvd (Nectar) – Issued June 16, 2023
1854 Newport Blvd (Mr. Nice Guy) – Issued June 29, 2023 2664 Newport Blvd (Secret Garden) – Issued July 12, 2023 170 East 17th Street (Catalyst) – Issued July 20, 2023 2845 Harbor (Mr. Nice Guy) – Issued September 8, 2023 2001 Harbor (South Coast Safe Access) – Issued October 23, 2023 Of the remaining 13 retail storefronts that have been issued a CUP , but are not yet open, two have not yet submitted for plan check, six are in plan check but have not yet been issued building permits, and 5 have been issued building permits and are under construction.
Additionally, 10 applicants have completed the pre-application determination process and background checks and were issued a Notice to Proceed to the Conditional Use Permit application phase of the process. They have submitted a CUP application , which is in the queue for review and a Planning Commission hearing.
Four additional applicants have completed the pre-application determination process but have not yet been issued a Notice to Proceed to a CUP application.
An additional 17 applications have submitted a “pre-application” but have not been reviewed by staff and have not yet received a Pre-application Determination Letter from the City.
A flowchart showing the number of applications within each application status category is provided below.
433
Item #: 23-1426 Meeting Date: 11/07/2023
ALTERNATIVES:
The City Council can decide not to direct staff to agendize consideration of a moratorium or a resolution as described herein . Staff would continue processing applications for cannabis retail storefront businesses under existing regulations, while potential amendments to the City’s regulations are being evaluated.
FISCAL REVIEW:
There is no fiscal impact associated with preparing a moratorium or resolution for consideration.
LEGAL REVIEW:
The City Attorney’s Office has reviewed and approved this report as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item is administrative in nature.
CONCLUSION:
Staff recommends the City Council provide direction regarding the potential preparation of a moratorium and/or other alternative procedure to discontinue or suspend acceptance and processing of cannabis retail applications.
434