Costa Mesa City Council
December 5, 2023

CITY OF COSTA MESA

REGULAR CITY COUNCIL AND SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY*
Agenda
City Council Chambers
77 Fair Drive
6:00 PMTuesday, December 5, 2023
*Note: All agency memberships are reflected in the title "Council Member" 4:00 P.M. Closed Session
The City Council meetings are presented in a hybrid format, both in-person at City Hall and as a courtesy virtually via Zoom Webinar. If the Zoom feature is having system outages or experiencing other critical issues, the meeting will continue in person.

TRANSLATION SERVICES AVAILABLE / SERVICIOS DE TRADUCCIÓN DISPONIBLE Please contact the City Clerk at (714) 754-5225 to request language interpreting services for City meetings. Notification at least 48 hours prior to the meeting will enable the City to make arrangements.

Favor de comunicarse con la Secretaria Municipal al (714) 754-5225 para solicitar servicios de interpretación de idioma para las juntas de la Ciudad. Se pide notificación por lo mínimo 48 horas de anticipación, esto permite que la Ciudad haga los arreglos necesarios.

Members of the public can view the City Council meetings live on COSTA MESA TV (SPECTRUM CHANNEL 3 AND AT&T U-VERSE CHANNEL 99) or
http://costamesa.granicus.com/player/camera/2?publish_id=10&redirect=true and online at youtube.com/costamesatv.

1 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023
Zoom Webinar: (For both 4:00 p.m. and 6:00 p.m. meetings) Please click the link below to join the webinar:
https://us06web.zoom.us/j/98376390419?pwd=dnpFelc5TnU4a3BKWVIyRVZMallZZz09 Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 983 7639 0419/ Password: 905283
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• During the Public Comment Period, use the “raise hand” feature located in the participants’ window and wait for city staff to announce your name and unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.

Participate via telephone: (For both 4:00 p.m. and 6:00 p.m. meetings) Call: 1 669 900 6833 Enter Webinar ID: 983 7639 0419/ Password: 905283 During the Public Comment Period, press *9 to add yourself to the queue and wait for city staff to announce your name/phone number and press *6 to unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.

Note, if you have installed a zoom update, please restart your computer before participating in the meeting.

Additionally, members of the public who wish to make a written comment on a specific agenda item, may submit a written comment via email to the City Clerk at [email protected].

Comments received by 12:00 p.m. on the date of the meeting will be provided to the City Council, made available to the public, and will be part of the meeting record.

Please know that it is important for the City to allow public participation at this meeting. If you are unable to participate in the meeting via the processes set forth above, please contact the City Clerk at (714) 754-5225 or [email protected] and staff will attempt to accommodate you. While the City does not expect there to be any changes to the above process for participating in this meeting, if there is a change, the City will post the information as soon as possible to the City’s website.

2 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023
Note that records submitted by the public will not be redacted in any way and will be posted online as submitted, including any personal contact information. All pictures, PowerPoints, and videos submitted for display at a public meeting must be previously reviewed by staff to verify appropriateness for general audiences. No links to YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to staff prior to each meeting in order to minimize complications and to play the video without delay. The video must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for public comments, for both videos and pictures. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting. If you do not receive confirmation from the city prior to the meeting, please call the City Clerks office at 714-754-5225.

Note regarding agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5): Any related documents provided to a majority of the City Council after distribution of the City Council Agenda Packets will be made available for public inspection. Such documents will be posted on the city’s website and will be available at the City Clerk's office, 77 Fair Drive, Costa Mesa, CA 92626.

All cell phones and other electronic devices are to be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to conduct a phone conversation.

Free Wi-Fi is available in the Council Chambers during the meetings. The network username available is: CM_Council. The password is: cmcouncil1953.

As a LEED Gold Certified City, Costa Mesa is fully committed to environmental sustainability.

A minimum number of hard copies of the agenda will be available in the Council Chambers.

For your convenience, a binder of the entire agenda packet will be at the table in the foyer of the Council Chambers for viewing. Agendas and reports can be viewed on the City website at https://costamesa.legistar.com/Calendar.aspx.

In compliance with the Americans with Disabilities Act, Assistive Listening headphones are available and can be checked out from the City Clerk. If you need special assistance to participate in this meeting, please contact the City Clerk at (714) 754-5225. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].

En conformidad con la Ley de Estadounidenses con Discapacidades (ADA), aparatos de asistencia están disponibles y podrán ser prestados notificando a la Secretaria Municipal. Si necesita asistencia especial para participar en esta junta, comuníquese con la oficina de la Secretaria Municipal al (714) 754-5225. Se pide dar notificación a la Ciudad por lo mínimo 48 horas de anticipación para garantizar accesibilidad razonable a la junta. [28 CFR

35.102.35.104 ADA Title II].

3 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023
CLOSED SESSION - 4:00 P.M.

CALL TO ORDER

ROLL CALL
PUBLIC COMMENTS Members of the public are welcome to address the City Council only on those items on the Closed Session agenda. Each member of the public will be given a total of three minutes to speak on all items on the Closed Session agenda.

CLOSED SESSION ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATION OF LITIGATION - SIX CASES
Pursuant to California Government Code Section 54956.9 (d)(2), Potential Litigation.

2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION – ONE CASE Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: DBO Investments CM, LLC, a California Liability Company v. City of Costa Mesa
Orange County Superior Court Case No. 30-2023-01360125-CU-CR-NJC.

3. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6 (a) Agency Designated Representative: Lori Ann Farrell Harrison, City Manager and Alma Reyes, Deputy City Manager
Name of Employee Organization: Costa Mesa Firefighters Association (CMFA).

4 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023

REGULAR MEETING OF THE CITY COUNCIL AND SUCCESSOR AGENCY

TO THE REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY
DECEMBER 5, 2023 – 6:00 P.M.

JOHN STEPHENS
Mayor

JEFFREY HARLAN ANDREA MARR Mayor Pro Tem - District 6 Council Member - District 3

MANUEL CHAVEZ LOREN GAMEROS Council Member - District 4 Council Member - District 2

ARLIS REYNOLDS DON HARPER
Council Member - District 5 Council Member - District 1

KIMBERLY HALL BARLOW LORI ANN FARRELL HARRISON
City Attorney City Manager

CALL TO ORDER

NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE

MOMENT OF SOLEMN EXPRESSION
[Per Council Policy 000-12, these presentations are made by community volunteers stating their own views. The City Council disclaims any intent to endorse or sponsor the views of any speaker.]

ROLL CALL

CITY ATTORNEY CLOSED SESSION REPORT
PRESENTATIONS:

1. Recognition of the Newport Mesa Pop Warner Patriots 12U

2. Recognition of South Coast Repertory's 60 Seasons

5 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Comments on Consent Calendar items may also be heard at this time.

Comments are limited to 3 minutes, or as otherwise directed.

COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Each council member is limited to 3 minutes. Additional comments will be heard at the end of the meeting.

1. Council Member Chavez

2. Council Member Gameros

3. Council Member Harper

4. Council Member Marr

5. Council Member Reynolds

6. Mayor Pro Tem Harlan

7. Mayor Stephens
REPORT – CITY MANAGER
REPORT – CITY ATTORNEY

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine and will be acted upon in one motion. There will be no separate discussion of these items unless members of the City Council, staff, or the public request specific items to be discussed and/or removed from the Consent Calendar for discussion.

1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL

ORDINANCES AND RESOLUTIONS
23-1467
RECOMMENDATION:

City Council, Agency Board, and Housing Authority approve the reading by title only and waive full reading of Ordinances and Resolutions.

2. READING FOLDER 23-1469
RECOMMENDATION:

City Council receive and file Claims received by the City Clerk: Jose Israel Gonzalez De La Cruz, Se7enLeaf LLC.

6 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023

3. ADOPTION OF WARRANT RESOLUTION 23-1470
RECOMMENDATION:

City Council approve Warrant Resolution No. 2709.

1. Summary Check Register 11-02-2023

2. Summary Check Register 11-08-2023

3. Summary Check Register 11-16-2023

4. Summary Check Register 11-21-2023
Attachments:

4. MINUTES 23-1468
RECOMMENDATION:

City Council approve the minutes of the regular meeting of November 7, 2023.

1. 11-07-2023 Draft MinutesAttachments:

5. REQUEST TO CANCEL THE REGULAR CITY COUNCIL MEETING OF JANUARY 2, 2024
23-1459
RECOMMENDATION:

Staff recommends the City Council cancel the regular meeting of Tuesday, January 2, 2024.

6. APPROVAL FOR THE PURCHASE AND REPLACEMENT OF

SECURITY VIDEO CAMERAS FOR THE POLICE DEPARTMENT
23-1455
RECOMMENDATION:

Staff recommends the City Council:

1. Authorize the use of OMNIA Partners Cooperative Agreement No. R220804 with SHI International Corp. for the purchase of Verkada Camera System in the amount of $259,114.24.

2. Authorize a 5% contingency of $12,955.71 for unforeseen costs.

3. Authorize the City Manager or designee to execute the necessary documents to purchase Verkada Camera System.

1. SHI QuoteAttachments:

7 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023

7. AMENDMENTS TO THE INTEGRATED LAW & JUSTICE AGENCY

FOR ORANGE COUNTY (ILJAOC) JOINT POWERS AGREEMENT
23-1456
RECOMMENDATION:

Staff recommends the City Council review and approve the proposed amendments to the Joint Powers Agreement for further review and approval by the Member Agencies.

1. JPAAttachments:

8. ACCEPTANCE OF THE 2022, 2023 AND 2024 EMERGENCY

MANAGEMENT PERFORMANCE GRANT
23-1457
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the Agreement to Transfer Funds for the 2022 Emergency Management Performance Grant Program (EMPG) (the “Agreement”) and authorize the City Manager to execute the agreement.

2. Adopt Resolution No. 2023-XX which authorizes the application for and acceptance of funds under the EMPG Program for Years 2022, 2023, and 2024 and authorizes the City Manager, or designee, to take all action necessary to obtain the funding.

3. Approve revenue and expense appropriations in the amount of $16,366 respectively, for the 2022 EMPG Program.

1. 2022 Transfer Agreement Form

2. Resolution
Attachments:

9. MEASURE M2 EXPENDITURE REPORT 23-1461
RECOMMENDATION:

Staff recommends the City Council adopt the proposed Resolution No. 2023-xx, (Attachment 1) approving the Measure M2 Expenditure Report and authorizing staff to submit the report to the Orange County Transportation Authority (OCTA.)

1. Proposed Resolution 2023-XX

2. M2 Expenditure Report
Attachments:

8 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023

10. AWARD OF THE CONNECTOR PIPE SCREEN INSTALLATION
PROJECT, PHASE IV, CITY PROJECT NO. 23-08 AND

DETERMINATION THAT THE PROJECT IS CATEGORICALLY

EXEMPT FROM CEQA
23-1462
RECOMMENDATION:

Staff recommends the City Council:

1. Find the project categorically exempt from CEQA and adopt plans, specifications, and working details for the Connector Pipe Screen Installation Project, Phase IV, City Project No. 23-08.

2. Authorize the City Manager and City Clerk to execute a Public Works Agreement (PWA) in the amount of $283,500, and future contract amendments within City Council authorized limits to United Storm Water, Inc., 1400 E. Valley Boulevard, Industry, California 91746.

3. Authorize a ten percent (10%) contingency in the amount of $28,350 for unforeseen construction and miscellaneous costs related to the project.

4. Authorize a budget appropriation from available fund balances from drainage fund in the amount of $55,967.

ENVIRONMENTAL DETERMINATION:

The proposed action is exempt from the California Environmental Quality Act (CEQA). The action involves an organizational or administrative activity of government that will not result in direct or indirect physical change in the environment. In addition, the proposed action is exempt under Section 15301 relating to the operation, repair, maintenance, permitting, and /or minor alteration of existing public facilities.

1. Bid AbstractAttachments:

9 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023

11. OPEN SPACE EASEMENT DEED AND AGREEMENT ( “RAIL TRAIL”)

WITH THE PRESS OWNER, LLC
23-1391
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the Open Space Easement Deed and Easement Agreement (“Rail Trail”) between the City of Costa Mesa (City) and The Press Owner, LLC (Press LLC).

2. Authorize the City Manager or designee to execute the Open Space Easement Deed and Easement Agreement and any future authorized amendments to this agreement.

1. Trail Easement Agreement

2. Easement and Deed Agreement
Attachments:

AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT

CALENDAR
------------------------------END OF CONSENT CALENDAR-------------------------------

10 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023
PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)

1. PUBLIC HEARING REGARDING THE DEVELOPMENT IMPACT FEES ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023

AND THE TRAFFIC IMPACT FEE ANALYSIS
23-1460
RECOMMENDATION:

Staff recommends the City Council:

1. Receive and file the Development Impact Fees Annual Report (Attachment 1) for the Fiscal Year ended June 30, 2023.

2. Adopt resolution (Attachment 2) continuing the citywide traffic impact fee for new development that incorporates recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include:
· Continue a traffic impact fee of $235 per Average Daily Trip (ADT) based on the Capital Improvement Projects in Attachment 4 and Active Transportation projects in the adopted Active Transportation Plan (ATP).
· Approve allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.
· Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development
requirements.
· Approve the annual accounting of the Citywide Traffic Impact Fee Program (Attachment 6).

1. 2022-23 DIF Report (Consolidated)

2. Traffic Impact Fee Resolution

3. Citywide Traffic Impact Fee Report

4. Revised TIF Calculation 2023

5. Chronology of City Council Actions

6. Resolution Exhibit A (TIF update for FY22-23 Accounting) Attachments:

11 REGULAR CITY COUNCIL AND

SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY*
Agenda December 5, 2023

2. FIRST READING OF AN ORDINANCE TO AMEND TITLE 13
(PLANNING, ZONING, AND DEVELOPMENT) OF THE COSTA MESA
MUNICIPAL CODE TO MODIFY THE CITY ’S OUTDOOR DINING
PROVISIONS (CODE AMENDMENT PCTY-23-0002)
23-1463
RECOMMENDATION:

Staff recommends the City Council:

1. Find that the project is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15061(b)(3) (“General Rule”); and

2. Introduce for first reading, by title only, Ordinance No. 2023-XX amending Title 13 of the Costa Mesa Municipal Code (Planning, Zoning, and Development) to modify the City’s outdoor dining provisions.

Agenda Report

1. Draft Ordinance

2. Exhibit A to the Ordinance clean version

3. Exhibit A to the Ordinance track changes

4. Planning Commission Resolution

5. Planning Commission approved minutes

6. Planning Commission Public Comments
Attachments:

OLD BUSINESS: NONE.

NEW BUSINESS: NONE.

ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND

SUGGESTIONS

ADJOURNMENT

12 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1467 Meeting Date: 12/5/2023
TITLE:

PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND

RESOLUTIONS
RECOMMENDATION:

City Council, Agency Board, and Housing Authority approve the reading by title only and waive full reading of Ordinances and Resolutions.

13 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1469 Meeting Date: 12/5/2023
TITLE:

READING FOLDER
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:

City Council receive and file Claims received by the City Clerk: Jose Israel Gonzalez De La Cruz, Se7enLeaf LLC.

14 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1470 Meeting Date: 12/5/2023
TITLE:

ADOPTION OF WARRANT RESOLUTION
DEPARTMENT: Finance Department
PRESENTED BY: Carol Molina, Finance Director
CONTACT INFORMATION: Carol Molina at (714) 754-5243
RECOMMENDATION:

City Council approve Warrant Resolution No. 2709.

BACKGROUND:

In accordance with Section 37202 of the California Government Code, the Director of Finance or their designated representative hereby certify to the accuracy of the following demands and to the availability of funds for payment thereof.

FISCAL REVIEW:

Funding Payroll Register No. 23-23 for $3,536,311.59, 23-23 “A” for $60.55, and 23-24 for $3,482,517.91; and City operating expenses for $5,165,744.85.

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1468 Meeting Date: 12/5/2023
TITLE:

MINUTES
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:

City Council approve the minutes of the regular meeting of November 7, 2023.

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Minutes – Regular Meeting – November 7, 2023 Page 1 of 15

REGULAR CITY COUNCIL AND SUCCESSOR AGENCY TO THE

REDEVELOPMENT AGENCY, AND HOUSING AUTHORITY
NOVEMBER 7, 2023 – MINUTES
CALL TO ORDER – The Closed Session meeting was called to order by Mayor Stephens at 4:00 p.m.

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: Council Member Reynolds.

PUBLIC COMMENTS
Rachel Xin, owner of High Seas Dispensary, spoke on Conference with Legal Counsel, Existing Litigation - 1921 Harbor Blvd., LLC dba High Seas, Orange County Superior Court.

The City Attorney reported the subject of one of the two cases on item #1 - Conference with Legal Counsel - Anticipation of Litigation is to discuss a threat of litigation by Rutan and Tucker law firm, pertaining to Old Business item #1, Just Cause Residential Tenant Protections.

CLOSED SESSION ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATION OF LITIGATION - TWO CASES
Pursuant to California Government Code Section 54956.9 (d)(2), Potential Litigation.

2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION – ONE CASE Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: 1921 Harbor Blvd. LLC dba High Seas
Orange County Superior Court Case No. Pending

3. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to California Government Code Section 54956.8
APN: 420-012-16
Agency Negotiators: Lori Ann Farrell Harrison, City Manager Negotiating Parties: State of California
Under Negotiation: Price and Terms of Payment
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Minutes – Regular Meeting – November 7, 2023 Page 2 of 15

4. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to California Government Code Section 54957.6 (a) Agency Designated Representative: Lori Ann Farrell Harrison, City Manager and Alma Reyes, Deputy City Manager
Name of Employee Organization: Costa Mesa Firefighters Association (CMFA).

City Council recessed at 4:06 p.m. for Closed Session.

Closed Session adjourned at 5:45 p.m.

CALL TO ORDER – The Regular City Council and Successor Agency to the Redevelopment Agency, and Housing Authority meeting was called to order by Mayor Stephens at 6:02 p.m.

NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE – Fire Captain Fred McDowell led the National Anthem and Mayor Stephens led the Pledge of Allegiance.

MOMENT OF SOLEMN EXPRESSION – Led by Rabbi Stephen Einstein, Congregation B’Nai Tzedek, Fountain Valley.

ROLL CALL

Present: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr Council Member Reynolds (Arrived 6:23 p.m.), Mayor Pro Tem Harlan and Mayor Stephens.

Absent: None.

CITY ATTORNEY CLOSED SESSION REPORT – No reportable action.

PRESENTATIONS:

The Mayor presented the Native American Heritage Month Proclamation to Mr. Chee.

The Mayor presented the Movember 2023 Proclamation to Mr. Hernandez.

PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Speaker spoke on the meeting regarding the Fairview Developmental Center site, Measure K, and requested a Citizens Advisory Group.

Gary Tracy spoke in support of providing permits to open High Seas Dispensary.

John Palmer, Costa Mesa, spoke on e-bike issues and dangerous speeds, and requested e-bike enforcement and education.

Bill Mason spoke in support of providing permits to open High Seas Dispensary.

Speaker, thanked City Council for positive changes in the neighborhood, spoke on walking signals, bike lanes, and workshops for Fairview Developmental Center.

Rachel Xin, owner of High Seas Dispensary, spoke on providing permits to open High Seas Dispensary.
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Minutes – Regular Meeting – November 7, 2023 Page 3 of 15 Speaker, Costa Mesa, spoke on gang activity in her neighborhood, the Police Department response, and requested interpreters at the 911 call center.

Josh Guesman, Vice President of the Orange County Model Engineers, spoke on behalf of Hank Castignetti, provided an update on the Orange County Model Engineers activities.

Juana Trejo, Costa Mesa, spoke on auto thefts, graffiti and gang activity in the community, and requested more of a police presence.

Jay Humphrey, Costa Mesa, requested education and enforcement regarding e-bikes, spoke on assisted hearing devices and better audio at all community meetings, spoke on citywide noticing for future Fairview Developmental Center meetings, and is opposed to the State Emergency Operations Center at the Fairview Developmental Center.

Kevin Ferrer, spoke in support of providing permits for High Seas Dispensary.

Charlene Ashendorf, Costa Mesa, thanked the City for the Artventure event, and spoke on Costa Mesa as the City of the Arts.

Speaker, spoke in support of granting the permits for High Seas Dispensary.

Speaker, spoke in support of granting the permits for High Seas Dispensary.

Carmen Ramirez, Costa Mesa, spoke on an increase of graffiti in the neighborhood, an influx of youth on e-bikes in the parks at night, and requested additional police activity in the neighborhood.

Devon Martinez, spoke in support of granting the permits for High Seas Dispensary.

Becca Walls, Chair of the Animal Services Committee, spoke on the Newport Center Animal Hospital contract ending, and the urgency of facilitating a new contract.

Zachary Blauvelt, spoke in support of granting the permits for High Seas Dispensary.

Norma Fisher, Costa Mesa, spoke on being evicted, and requested funding for low income seniors.

Ralph Taboada, Costa Mesa, spoke on the utilization of metrics and workload indicators.

Cynthia McDonald, Costa Mesa, representing Costa Mesa First, spoke on additional public outreach and noticing for community meetings, audio issues at community meetings, and forming a citizens advisory committee.

Speaker, spoke on street safety, Assembly Bill 413, and requested additional protected bike lanes.

Speaker, spoke on the role of government and government spending.

Aaron McCall spoke on e-bikes, traffic and pedestrian safety, and crosswalks. 106
Minutes – Regular Meeting – November 7, 2023 Page 4 of 15 Speaker, spoke on Native Americans, Fairview Park, and against the Harbor Soaring Society.

Wendy Leece, Costa Mesa, spoke on the Fairview Developmental Center meeting, requested additional outreach, and forming a citizens advisory committee.

COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Reynolds spoke on improving outreach for the Fairview Developmental Center meetings, spoke on W. 19 th St. improvements, requested bollards West of Placentia Ave., requested public information videos on infrastructure improvements, congratulated Mayor Stephens on his appointment to the board of the Orange County Transportation Authority, and thanked the team that hosted the clean-up at a property on Avocado Ave.

Council Member Chavez spoke on public safety, spoke on reporting any suspicious activity, spoke on incentivizing the apartment owners to install cameras, and spoke on the Fairview Developmental Center site and housing.

Council Member Gameros spoke on reflecting on Veterans Day.

Council Member Harper spoke on metrics, supports a Citizen Advisory Committee for the Fairview Developmental Center, spoke on e-bike safety and enforcement, spoke on Placentia Ave. bollards being damaged, the narrow lanes, and cars crossing the center lines and bike lanes.

Council Member Marr spoke on the lanes on Placentia Ave. are narrow to reduce speeds, spoke on High Seas Dispensary, requested an update from Ms. Hall Barlow, City Attorney, who spoke on a claim and lawsuit from High Seas Dispensary, Council Member Marr requested an update on the Newport Center Animal Hospital contract, inquired on translation services at dispatch, spoke on the Fairview Developmental Center meetings and additional outreach.

Mayor Pro Tem Harlan spoke on the fence at Harper Park, thanked the Public Works Department for installing the signalized crosswalk at Santa Ana Ave. and Esther St, spoke on the Fairview Developmental Center site workshop and it being the beginning of a 2-year process and spoke on additional outreach, spoke on attending the 25 th anniversary of Robinson Hill Architects event, and spoke on the Hamas terrorist attack on Israel.

Mayor Stephens spoke on Chris McGuire for receiving the Veteran of the Year award, spoke on his appointment to the Orange County Transportation Authority, spoke on e-bikes and safety issues, education, and enforcement, spoke on Northgate Market opening on November 17th, spoke on the Veterans Day celebration on November 11 th at 2:00 pm at Heroes Hall, spoke on graffiti and thanked the Public Works Department for expediency in the clean-up, spoke on the Fairview Developmental Center and writing a letter to the Governor against putting an Emergency Operation Center at the site, requested noticing to the entire city for community meetings, praised CMTV for awards received, spoke on engaging CMTV for Fairview Developmental Center planning efforts, and congratulated Fire Chief Stefano for being inducted into the Fire Chief Hall of Fame.
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Minutes – Regular Meeting – November 7, 2023 Page 5 of 15 REPORT – CITY MANAGER – Ms. Farrell Harrison congratulated Fire Chief Stefano for being inducted into the Fire Chiefs Hall of Fame, thanked Ms. Ashendorf for her public comment, thanked the Arts Commission and staff for Artventure , introduced Broc Coward Community Relations Manager, and Jay Barkman, Government Affairs Manager, spoke on the carpool lanes opening on the I-405 freeway on December 1st, spoke on community engagement efforts for future meetings, spoke on the Animal Services contract, an e-bike ordinance, Spanish translation services at dispatch is available, and played a video regarding the new Costa Mesa 311 Application.

REPORT – CITY ATTORNEY – Ms. Hall Barlow reported that the Da Silva lawsuit has been dismissed.

CONSENT CALENDAR
MOVED/SECOND: Council Member Chavez/Council Member Reynolds MOTION: Approve the Consent Calendar.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Harper, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None

Absent: None.

Abstain: None.

Motion carried: 7-0

1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND

RESOLUTIONS
ACTION:

City Council, Agency Board, and Housing Authority approved the reading by title only and waived full reading of Ordinances and Resolutions.

2. READING FOLDER
ACTION:

City Council received and filed Claims received by the City Clerk: Malik Anthony Atalla, Kendra Boost, Christopher Matlick, Jeff Schoneman, High Seas.

3. ADOPTION OF WARRANT RESOLUTION
ACTION:

City Council approved Warrant Resolution No. 2708.

4. MINUTES
ACTION:

City Council approved the minutes of the regular meeting of October 17, 2023. 108
Minutes – Regular Meeting – November 7, 2023 Page 6 of 15

5. PURCHASE OF THE FOSTER & FREEMAN DCS®5 DIGITAL CAPTURE SYSTEM

FOR THE POLICE DEPARTMENT CRIME SCENE UNIT
ACTION:

1. City Council approved and authorized the purchase of a DCS®5 Digital Capture System from Foster & Freeman for the Crime Scene Unit (CSU) in the amount of $112,106.

2. Authorized the City Manager to execute a Purchase Order, and any other documents required in connection with the purchase of the DCS®5 Digital Capture System.

6. ACCEPTANCE OF THE 2023-2024 CALIFORNIA DEPARTMENT OF ALCOHOLIC

BEVERAGE CONTROL (ABC) GRANT
ACTION:

1. City Council adopted the Resolution No. 2023-52 authorizing the acceptance of grant funds in the amount of $40,000 from the California Department of Alcoholic Beverage Control in connection with its Alcohol Policing Partnership Program.

2. Approved budget appropriation of $40,000 from the Alcoholic Beverage Control Grant.

7. SUB RECIPIENT AGREEMENT FOR THE 2022 URBAN AREA SECURITY

INITIATIVE GRANT
ACTION:

City Council authorized the City Manager, or designee, to execute the Sub-Recipient Agreement with the City of Anaheim for the FY 2022 Urban Areas Security Initiative (UASI) Grant Program.

8. PROFESSIONAL ARCHITECTURAL AND ENGINEERING SERVICES FOR THE

COSTA MESA SKATE PARK EXPANSION
ACTION:

1. City Council awarded a Professional Services Agreement (PSA) to David Volz Design Landscape Architects, Inc., 151 Kalmus Drive, Suite M8, Costa Mesa, California in the amount of $287,476 for the design of the Costa Mesa Skate Park located at 900 Arlington Drive, Costa Mesa, and authorized the City Manager and the City Clerk to execute the PSA.

2. Authorized a ten percent (10%) contingency in the amount of $28,748 in order to cover additional work or unforeseen circumstances.

3. Authorized the City Manager and the City Clerk to execute the PSA and any future amendments to the agreement within Council authorized limits. 109
Minutes – Regular Meeting – November 7, 2023 Page 7 of 15

9. 2025 FEDERAL TRANSPORTATION IMPROVEMENT PROGRAM
ACTION:

City Council adopted Resolution No. 2023-53, approving projects for inclusion in the Orange County Transportation Authority’s (OCTA) Federal Transportation Improvement Program (FTIP) for Fiscal Years 2024/25 through 2029/30.

10. BICYCLE SAFETY EDUCATION PROGRAM FOR SCHOOLS
ACTION:

1. City Council awarded a Professional Services Agreement (PSA) to Walk ‘n Rollers, 8800 Venice Boulevard, Suite 301, Los Angeles, CA 90034 for the development of a Bicycle Safety Education Program for Schools in the amount of $149,967.

2. Authorized a ten percent (10%) contingency in the amount of $14,996 for unforeseen costs.

3. Authorized the City Manager and the City Clerk to execute the PSA and any future amendments to the agreement.

11. REJECT ALL BIDS - ADAMS AVENUE AND PINECREEK DRIVE INTERSECTION PROJECT, FEDERAL PROJECT NO. CML-5312(104), CITY PROJECT NO. 23-01 ACTION:

City Council rejected all bids for the Adams Avenue and Pinecreek Drive Intersection Project, Federal Project No. CML-5312(104), City Project No. 23-01, and directed staff to re-advertise the project.

AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT

CALENDAR
-----------------------------------------END OF CONSENT CALENDAR--------------------------------------- City Council recessed into a break at 8:07 p.m.

City Council reconvened at 8:22 p.m.

PUBLIC HEARINGS: NONE.
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.) 110
Minutes – Regular Meeting – November 7, 2023 Page 8 of 15 OLD BUSINESS:

1. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA AMENDING TITLE 9 (LICENSES AND BUSINESS REGULATIONS) OF

THE COSTA MESA MUNICIPAL CODE BY ADDING CHAPTER II (REGULATION OF CERTAIN BUSINESSES, ARTICLE 24 (JUST CAUSE RESIDENTIAL TENANT

PROTECTIONS)
Presentation by Mr. Robbins, Neighborhood Improvement Manager and Ms. Le, Director of Economic and Development Services.

MOVED/SECOND: Council Member Marr/Gameros
MOTION: Limit public comments to 2 minutes each and 4 minutes for translation.

The motion carried by the following roll call vote:

Ayes: Council Member Gameros, Council Member Harper, Council Member Marr, and Mayor Pro Tem Harlan.

Nays: Council Member Chavez, Council Member Reynolds, and Mayor Stephens.

Absent: None.

Abstain: None.

Motion carried: 4-3
Public Comments:

Speaker, spoke in opposition of the proposed ordinance.

Speaker, spoke in opposition of the proposed ordinance.

Victor Cao, California Apartment Association, spoke in opposition of the proposed ordinance.

Maricela Lopez spoke in support of the proposed ordinance.

Ian Stevenson spoke in support of residents who need assistance.

Carmen Ramirez spoke in support of the proposed ordinance.

Speaker, spoke in opposition of the proposed ordinance.

Speaker, Resilience Orange County, spoke in support of the proposed ordinance.

Nick Gould, real estate broker, spoke in opposition of the proposed ordinance.

Speaker, spoke in support of the proposed ordinance.

Chip Ahlswede, Apartment Association of Orange County, spoke in opposition of the proposed ordinance.

Ashley Anderson, Trustee, Newport Mesa Unified School District, spoke in support of the proposed ordinance.
111
Minutes – Regular Meeting – November 7, 2023 Page 9 of 15 Speaker, spoke in opposition of the proposed ordinance.

Speaker, Resilience Orange County, spoke in support of the proposed ordinance.

Speaker, spoke in opposition of the proposed ordinance.

Juana Trejo spoke in support of the proposed ordinance.

Speaker, spoke in support of the proposed ordinance.

Speaker, Resilience Orange County, spoke in support of the proposed ordinance.

Aaron McCall spoke in support of the proposed ordinance.

Haley Horton spoke in support of the proposed ordinance.

Kathy Esfahani spoke in support of the proposed ordinance.

Dianna Russell spoke in support of the proposed ordinance.

MOVED/SECOND: Council Member Chavez/Council Member Gameros MOTION: Approve an urgency ordinance, appropriate $300,000 of ARPA funds to Families Forward for family rental assistance, proposed the City to provide through ARPA funds the additional 1-month fair market rental assistance, remove the landlords mandatory notification to the City, and the City to conduct outreach to landlords and tenants regarding the ordinance.

Mayor Stephens requested a friendly amendment that the urgency ordinance would take effect November 21st to allow for outreach.

Council Member Chavez did not agree to the change.

Mayor Stephens requested a friendly amendment to change the $300,000 to $500,000.

Council Member Chavez agreed to the change.

Mayor Stephens clarified the ARPA funds covering the 1-month rent is for fair market value.

SUBSTITUTE MOTION /SECOND: Council Member Marr/Council Member Reynolds SUBSTITUTE MOTION: Adopt an urgency ordinance as written by staff with one exception: reduce the amount of rental assistance to 1-month of fair market value, to appropriate $300,000 of ARPA funds, to allocate $250,000 of uncommitted ARPA funds to Jones & Mayer for eviction and rental-related legal services, and to add 2 full time employees: a Community Outreach Worker and a Code Enforcement Officer.

Note: Urgency Ordinance requires a four-fifths vote.

The motion failed by the following roll call vote:

Ayes: Council Member Chavez, Council Member Harper, Council Member Reynolds, Council Member Marr, and Mayor Stephens.
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Minutes – Regular Meeting – November 7, 2023 Page 10 of 15 Nays: Council Member Gameros and Mayor Pro Tem Harlan.

Absent: None.

Abstain: None.

Motion failed: 5-2
SECOND SUBSTITUTE MOTION: Council Member Marr
SECOND SUBSTITUTE MOTION: Adopt an ordinance as written by staff with one exception: reduce the amount of relocation assistance to 1-month of fair market value, to appropriate $300,000 of ARPA funds, to allocate $250,000 of uncommitted ARPA funds to Jones & Mayer, and to add 2 full time employees: a Community Outreach Worker and a Code Enforcement Officer.

The motion failed for lack of a second.

THIRD SUBSTITUTE MOTION /SECOND: Council Member Gameros/Council Member Reynolds
THIRD SUBSTITUTE MOTION: Adopt an urgency ordinance as written by staff with one exception: reduce the amount of relocation assistance to 1-month of fair market value, to appropriate $300,000 of ARPA funds, allocate $250,000 of uncommitted ARPA funds to Jones & Mayer, and to add 3 full time employees: a Community Outreach Worker, a Code Enforcement Officer, and a Senior Planner.

Mayor Pro Tem Harlan requested a friendly amendment: include outreach to landlords.

Council Member Gameros (1) and Council Member Reynolds (2) agreed to the amendment.

THIRD SUBSTITUTE MOTION /SECOND: Council Member Gameros/Council Member Reynolds
THIRD SUBSTITUTE MOTION: Adopt an urgency ordinance as written by staff with one exception: reduce the amount of relocation assistance to 1-month of fair market value, appropriate $300,000 of ARPA funds, allocate $250,000 of uncommitted ARPA funds to Jones & Mayer, add 3 full time employees: a Community Outreach Worker, a Code Enforcement Officer, and a Senior Planner, and to include outreach to landlords.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Reynolds, Council Member Marr, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: Council Member Harper.

Absent: None.

Abstain: None.

Motion Carried: 6-1
Council Member Harper indicated he did not support the motion as he does not agree to the addition of a Senior Planner.

ACTION:

1. City Council adopted Urgency Ordinance No. 2023-04 (as amended), an Urgency Ordinance Amending Title 9 (Licenses and Business Regulations) of the Costa Mesa Municipal Code by Adding Chapter II (Regulation of Certain Businesses), Article 24 (Just Cause Residential Tenant Protections). 113
Minutes – Regular Meeting – November 7, 2023 Page 11 of 15

2. Appropriated a total of $300,000 from uncommitted American Rescue Plan Funds (ARPA) to provide supplemental rental assistance to households facing no-fault just cause eviction, and authorized the City Manager, City Attorney, and City Clerk to approve and execute new or amended agreements with existing program providers.

3. Allocated $250,000 from uncommitted ARPA funds to the Law Offices of Jones Mayer, increasing the scope of the contract to include eviction and rental-related legal services, including but not limited to court filings, to enforce the eviction protection provisions of the Costa Mesa Municipal Code regarding unlawful acts in connection with no-fault just cause evictions.

4. Approved the addition of three (3) Full Time Equivalent (FTE) staff positions to implement, monitor, and enforce the subject Urgency Ordinance. The staff positions include one Community Outreach Worker in the Neighborhood Improvement Division, one (1) Senior Planner, and one (1) Code Enforcement Officer II in the Economic and Development Services Department.

5. Directed staff to conduct outreach to landlords.

NEW BUSINESS:

1. FISCAL YEAR 2022-23 PRELIMINARY UNAUDITED YEAR-END FINANCIAL REPORT
Presentation by Ms. Molina, Finance Director.

Public Comments: None.

MOVED/SECOND: Council Member Chavez/Mayor Pro Tem Harlan MOTION: Approve staff recommendation with the addition of funding bus shelters and amenities if there is more than $6 million in surplus.

Council Member Reynolds requested a friendly amendment to allocate $300,000 to bus shelters from the workers compensation fund.

Council Member Chavez did not agree to the request.

SUBSTITUTE MOTION/SECOND: Council Member Marr/Council Member Reynolds SUBSTITUTE MOTION: Approve staff recommendation except, instead of funding $1.1 million for the Lions Park Café, move $300,000 of those funds to fund bus shelters and amenities and the remainder to Housing Element Programs.

The motion failed by the following roll call vote:

Ayes: Council Member Reynolds and Council Member Marr.

Nays: Council Member Chavez, Council Member Gameros, Council Member Harper, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

Abstain: None.

Motion failed: 2-5
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Minutes – Regular Meeting – November 7, 2023 Page 12 of 15 SECOND SUBSTITUTE MOTION/SECOND: Council Member Reynolds SECOND SUBSTITUTE MOTION: Approve staff recommendation with the following change: reallocate $300,000 from the workers compensation fund to fund bus shelters and amenities.

Council Member Chavez agreed to add the change to his motion as an amendment in lieu of a substitute motion.

ORIGINAL MOTION/SECOND: Council Member Chavez/Mayor Pro Tem Harlan ORIGINAL MOTION: Approve staff recommendation with the addition of reallocating $300,000 from the workers compensation fund to fund bus shelters and amenities.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: Council Member Harper and Council Member Marr.

Absent: None.

Abstain: None.

Motion carried: 5-2
ACTION:

City Council authorized 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 $300,000 to Fund 401 for bus shelters and amenities. d) Deposit $500,000 (up to $1.0 Million, if available for surplus funds of $6.0 million) to the Workers’ Compensation Fund Balance designation;
e) Transfer $900,000 to Housing Fund 222 for Housing Element and Visioning; f) Transfer $300,000 to Equipment Fund 602 to pay the balance of one Fire Engine Apparatus; and
g) Transfer $1.2 million to Fund 401 for improvements to the City’s Golf Course and Tennis Center.

2. LIONS PARK CAFÉ PROJECT
Presentation by Mr. Sethuraman, Public Works Director.

Public Comments: None.

MOVED/SECOND: Council Member Chavez/Council Member Reynolds MOTION: Approve staff recommendation.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Reynolds, Council Member Marr, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: None.
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Minutes – Regular Meeting – November 7, 2023 Page 13 of 15

Absent: Council Member Harper.

Abstain: None.

Motion carried: 6-0
ACTION:

1. City Council authorized the City Manager and City Clerk to execute 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. Authorized the City Manager and City Clerk to execute the Professional Services Agreement (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. Authorized 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. Created and amended the City’s budget appropriations and allocations in the amounts and funds as needed to effectuate the changes identified above.

MOVED/SECOND: Council Member Reynolds/Council Member Chavez MOTION: Continue the meeting past midnight.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Council Member Reynolds, Council Member Marr, and Mayor Stephens.

Nays: Mayor Pro Tem Harlan.

Absent: Council Member Harper.

Abstain: None.

Motion carried: 5-1

3. 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
Presentation by Ms. Le, Economic and Development Services Director.

Public Comments:

Speaker, expressed concern for pausing the process of cannabis applications.

Speaker, spoke in opposition of the item.

Keith Scheinberg, spoke in opposition of the item.
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Minutes – Regular Meeting – November 7, 2023 Page 14 of 15 MOVED/SECOND: Mayor Stephens/Mayor Pro Tem Harlan
MOTION: Receive and file the report.

SUBSTITUTE MOTION/SECOND: Council Member Marr/Council Member Chavez SUBSTITUTE MOTION: Direct staff to draft a resolution to limit the cannabis storefronts to 22.

The motion failed by the following roll call vote:

Ayes: Council Member Chavez and Council Member Marr.

Nays: Council Member Gameros, Council Member Harper, Council Member Reynolds, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

Abstain: None.

Motion failed: 2-5
SECOND SUBSTITUTE MOTION/SECOND: Council Member Reynolds/Council Member Marr
SECOND SUBSTITUTE MOTION: Direct staff to draft a resolution to stop processing any applications on the waitlist and in the pre-application process.

The motion failed by the following roll call vote:

Ayes: Council Member Reynolds and Council Member Marr.

Nays: Council Member Chavez, Council Member Gameros, Council Member Harper, Mayor Pro Tem Harlan, and Mayor Stephens.

Absent: None.

Abstain: None.

Motion failed: 2-5
ORIGINAL MOTION/SECOND: Mayor Stephens/Mayor Pro Tem Harlan MOTION: Receive and file the report.

The motion carried by the following roll call vote:

Ayes: Council Member Chavez, Council Member Gameros, Mayor Pro Tem Harlan, and Mayor Stephens.

Nays: Council Member Harper, Council Member Reynolds, and Council Member Marr.

Absent: None.

Abstain: None.

Motion carried: 4-3
ACTION:

City Council received and filed the staff report.

ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS – NONE.

ADJOURNMENT– Mayor Stephens adjourned the meeting at 12:03 a.m. 117
Minutes – Regular Meeting – November 7, 2023 Page 15 of 15 Minutes adopted on this 5th day of December, 2023.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
118

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1459 Meeting Date: 12/5/2023
TITLE:

REQUEST TO CANCEL THE REGULAR CITY COUNCIL MEETING OF JANUARY 2, 2024 DEPARTMENT: CITY MANAGER’S OFFICE /CITY CLERK DIVISION
PRESENTED BY: BRENDA GREEN, CITY CLERK
CONTACT INFORMATION: BRENDA GREEN, CITY CLERK, 714-754-5221 RECOMMENDATION:

Staff recommends the City Council cancel the regular meeting of Tuesday, January 2, 2024.

BACKGROUND:

The City conducts regularly scheduled City Council meetings on the first and third Tuesdays of the month. However, the January 2, 2024 regular meeting follows the holidays and the closure of City Hall from Friday, December 22, 2023 through Monday, January 1, 2024. It is recommended that the January 2, 2024, regular City Council meeting be canceled due to this timing. The regular Council meeting of January 16, 2024 will still be held.

ANALYSIS:

The City Council has the legal authority to establish meeting dates and times and to cancel or reschedule such meetings. Canceling the January 2, 2024 meeting in advance allows time for proper public noticing.

ALTERNATIVES:

City Council may choose to hold the meeting on January 2, 2024; however, this action is not recommended as staff would be required to work during the holiday closure.

FISCAL REVIEW:

No fiscal impact.

LEGAL REVIEW:

The City Attorney’s Office has reviewed the report and approved as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item is administrative in nature.

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File #: 23-1459 Meeting Date: 12/5/2023
CONCLUSION:

Staff recommends the City Council cancel the regular meeting of Tuesday, January 2, 2024.

120

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1455 Meeting Date: 12/5/2023
TITLE:

APPROVAL FOR THE PURCHASE AND REPLACEMENT OF SECURITY VIDEO CAMERAS FOR

THE POLICE DEPARTMENT
DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: DAVID CASAREZ, LIEUTENANT
CONTACT INFORMATION: DAVID CASAREZ, LIEUTENANT, (714) 754-5266 RECOMMENDATION:

Staff recommends the City Council:

1. Authorize the use of OMNIA Partners Cooperative Agreement No. R220804 with SHI International Corp. for the purchase of Verkada Camera System in the amount of $259,114.24.

2. Authorize a 5% contingency of $12,955.71 for unforeseen costs.

3. Authorize the City Manager or designee to execute the necessary documents to purchase Verkada Camera System.

BACKGROUND:

The Police Department utilizes surveillance cameras at the department to monitor access points, parking lots, and the jail to ensure the safety and welfare of our employees and those we have in custody.

The Police Department’scurrent surveillance equipment, which includes a Milestone VMS server and cameras were installed in 2019. These analog cameras are at their end of life and no longer provide adequate video as several cameras have to be repeatedly replaced or repaired. Several server hard drives have also been replaced throughout the years and will begin to fail again soon. The monetary cost from our current contracted maintenance service provider continues to grow for repairs and service calls when the cameras or the server malfunctions.

Due to technological advances in recent years, surveillance cameras are now streamed digitally providing clearer and sharper images. These surveillance videos now stream directly to the cloud and no longer require servers onsite that require maintenance.

Staff proposes replacing the current Milestone Camera system hardware with the Verkada system.

This system was recently installed at City Hall, Downtown Recreation Center, and Code Enforcement offices and has been beneficial for the security of these buildings and their occupants. Adding the

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File #: 23-1455 Meeting Date: 12/5/2023
offices and has been beneficial for the security of these buildings and their occupants. Adding the Police Department to this system will allow for easier monitoring of all city facilities by police staff and seamless access for review for investigative purposes when needed.

ANALYSIS:

The proposed purchase of the Verkada Camera System is necessary to maintain the Police Department’ssecurity surveillance in case of vandalism and acts of violence. The video surveillance system in the jail is paramount as it continuously records the welfare and safety of our employees and the persons who are in our care and custody. The current system has been intermittently failing to record valuable evidence, making it difficult to prosecute for vandalism or drug possession in the jail and juvenile holding rooms. The video system also helps to mitigate false allegations of force or theft in the City’sjail, which is now currently being maintained by our own full-time City employed- Custody Officers. Several locations in the jail and throughout the police campus have been identified as having “blind spots.” With the installation of the new Verkada camera system, the blind spots would now be covered. The new Verkada system also allows authorized police personnel to monitor or view locations from a mobile application or desk top computer 24 hours a day, 7 days a week.

Authorized police personnel would also be able to retrieve video evidence from most cameras for 60 days and 365 days from the jail.

Although Siemens currently supports the entire security system of the Police Department, frustration continues to grow based on the intermittent failures from the cameras, the rise in service calls and the price to replace or repair equipment. Verkada is the current provider of the security cameras at City Hall, Downtown Recreation Center and the offsite Code Enforcement office. Our I.T. Department is familiar with the vendor and the inner workings of how the camera system operates. Staff also recommends the equipment be purchased on the Omni Partners Cooperative Agreement that is approved by our purchasing department.

Purchasing the Verkada camera system through OMNIA Partners meets all requirements set forth in the City of Costa Mesa’sPurchasing Policy and all requirements set forth by the State of California in regard to regional cooperative purchasing agreements. This process confirms that the City still receives the lowest available pricing, and meets the competitive bid process requirements. The City has utilized OMNIA Partners successfully for several previous related purchases.

The SHI International Corp quote is included as Attachment 1, totaling $259,114.24. A separate construction contract will be executed for the installation of the Verkada camera system.

ALTERNATIVES:

The City Council may elect not to move forward with the purchase of the Verkada security cameras, mounting parts, user licenses, and extended warranties; however, this alternative is not recommended as the current security cameras are reaching their end of life and replacements are crucial to maintaining the Police Department’s security surveillance.

FISCAL REVIEW:

There are sufficient appropriations in Narcotics Forfeiture Fund in FY 2023/24 to fund this purchase.

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File #: 23-1455 Meeting Date: 12/5/2023
LEGAL REVIEW:

The City Attorney’s Office has reviewed this agenda report and approved it as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:
· Strengthen the Public’s Safety and Improve the Quality of Life CONCLUSION:

Staff recommends the City Council:

1. Authorize the use of OMNIA Partners Cooperative Agreement No. R220804 with SHI International Corp. for the purchase of Verkada Camera System in the amount of $259,114.24.

2. Authorize a 5% contingency of $12,955.71 for unforeseen costs.

3. Authorize the City Manager or designee to execute the necessary documents to purchase Verkada Camera System.

123

Pricing Proposal
Quotation #:  24076396
Created On:  10/18/2023
Valid Until:   12/29/2023

CA-City of Costa Mesa   Inside Account
Executive

Michael Steinke
P.O. BOX 1200
Costa Mesa, CA 92628
United States
Phone: (714) 754-5000
Fax:

Email: [email protected]

Dave Stanley
290 Davidson AVE
Somerset, NJ 08873
Phone: 800-527-6389
Fax:

Email: [email protected]
All Prices are in US Dollar (USD)
Product Qty Your Price Total

1 CF81-E Outdoor Fisheye Camera, 1TB, 60 Days Max
Verkada - Part#: CF81-60E-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
4 $1,942.46 $7,769.84

2 5-Year Camera License
Verkada - Part#: LIC-5Y
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Software, ESD
71 $568.23 $40,344.33

3 CH52 Outdoor Multi-sensor dome Camera, 2TB, 60 Days Max Verkada - Part#: CH52-2TBE-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
6 $3,525.80 $21,154.80

4 5-Year CH52 Multisensor Camera License
Verkada - Part#: LIC-CH52-5Y
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Software, ESD
6 $1,705.95 $10,235.70

5 5-Year Viewing Station License
Verkada - Part#: LIC-VX-5Y
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Software, ESD
5 $1,263.51 $6,317.55

6 CD42-E Outdoor Dome Camera, 2TB, 365 Days Max
Verkada - Part#: CD42-2TBE-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
33 $2,662.16 $87,851.28

124
7 CD42 Indoor Dome Camera, 2TB, 365 Days Max
Verkada - Part#: CD42-2TB-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
1 $2,518.22 $2,518.22

8 CD52 Indoor Dome Camera, 2TB, 365 Days Max
Verkada - Part#: CD52-2TB-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
5 $2,662.16 $13,310.80

9 Camera Weather Shield
Verkada - Part#: ACC-CAM-SHIELD-1
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
2 $56.86 $113.72

10 Corner Mount
Verkada - Part#: ACC-MNT-10
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
3 $143.22 $429.66

11 Arm Mount
Verkada - Part#: ACC-MNT-2
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
9 $64.05 $576.45

12 L-Bracket Mount
Verkada - Part#: ACC-MNT-3
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
9 $92.84 $835.56

13 CM41 Indoor Mini Dome Camera, 256GB, 60 Days Max
Verkada - Part#: CM41-60-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
3 $862.92 $2,588.76

14 CD52-E Outdoor Dome Camera, 512GB, 60 Days Max
Verkada - Part#: CD52-512E-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
7 $1,294.73 $9,063.11

15 CD62 Indoor Dome Camera, 1TB, 60 Days Max
Verkada - Part#: CD62-60-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
13 $1,726.55 $22,445.15

16 CD62-E Outdoor Dome Camera, 1TB, 60 Days Max
Verkada - Part#: CD62-60E-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
2 $1,870.49 $3,740.98

17 Angle Mount  2 $107.23 $214.46
125
Verkada - Part#: ACC-MNT-7
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days

18 Pendant Cap Mount
Verkada - Part#: ACC-MNT-8
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
9 $49.66 $446.94

19 Pole Mount, 2nd Generation
Verkada - Part#: ACC-MNT-9
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, in stock, ETA 2-5 business days
4 $150.42 $601.68

20 CB52-TE Outdoor Bullet Camera, 512GB, 60 Days Max
Verkada - Part#: CB52-512TE-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, In Stock, ETA 2-5 Business days
3 $1,438.64 $4,315.92

21 CP52 Outdoor PTZ Camera, 1TB, 60 Days Max
Verkada - Part#: CP52-1TBE-HW
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, In Stock, ETA 2-5 business days
1 $3,510.58 $3,510.58

22 Large Arm Mount (PTZ)
Verkada - Part#: ACC-MNT-XLARM-1
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, In Stock, ETA 2-5 business days
1 $124.07 $124.07

23 PoE++ (802.3bt-2018) Injector, GigE
Verkada - Part#: ACC-POE-60W
Contract Name: Omnia Partners - IT Solutions
Contract #: 2018011-02
Note: Hardware, In Stock, ETA 2-5 business days
1 $116.26 $116.26

Subtotal $238,625.82
Shipping $1,851.43
*Tax $18,636.99
Total $259,114.24
*Tax is estimated. Invoice will include the full and final tax due.

Additional Comments
Please note, if Emergency Connectivity Funds (ECF) will be used to pay for all or part of this quote, please let us know as we will need to ensure compliance with the funding program.

Hardware items on this quote may be updated to reflect changes due to industry wide constraints and fluctuations.

Thank you for choosing SHI International Corp! The pricing offered on this quote proposal is valid through the expiration date listed above. To ensure the best level of service, please provide End User Name, Phone Number, Email Address and applicable Contract Number when submitting a Purchase Order. For any additional information including Hardware, Software and Services Contracts, please contact an SHI Inside Sales Representative at (888) 744-4084. SHI International Corp. is 100% Minority Owned, Woman Owned Business.  TAX ID# 22-3009648; DUNS# 61-1429481; CCR# 61-243957G; CAGE 1HTF0 126
The products offered under this proposal are resold in accordance with the terms and conditions of the Contract referenced under that applicable line item.
127

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1456 Meeting Date: 12/5/2023
TITLE:

AMENDMENTS TO THE INTEGRATED LAW & JUSTICE AGENCY FOR ORANGE COUNTY (ILJAOC) JOINT POWERS AGREEMENT
DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: JASON CHAMNESS, CAPTAIN
CONTACT INFORMATION: JASON CHAMNESS, CAPTAIN, (714) 754-5272 RECOMMENDATION:

Staff recommends the City Council review and approve the proposed amendments to the Joint Powers Agreement for further review and approval by the Member Agencies.

BACKGROUND:

Since June of 2006, the City of Costa Mesa (on behalf of the Police Department), has been a Member Agency of the Integrated Law & Justice Agency for Orange County (ILJAOC), a Joint Powers Authority. The JPA currently has 24 Members, representing each City that has a Municipal Police Department, as well as the County of Orange, and the Orange County Sheriff’sDepartment for its identified service areas. The Member Agencies also include the Superior Court of Orange County, the University of California at Irvine and California State University, Fullerton, on behalf of their Police Departments. The JPA was formed to allow Criminal Justice Agencies in Orange County to jointly address new technology projects on a regional basis, as well as improve business processes affecting the efficiency of the Criminal Justice System in Orange County. It has the authority to move the represented agencies forward collectively on issues that would be virtually impractical to accomplish on an agency-by-agency basis.

The Member Agencies originally adopted the Joint Powers Agreement (the “Agreement”) on September 3, 2008. The Agreement was next amended on June 8, 2015. The Agreement governs the operation of the ILJOC. The Agreement is executed by all Member Agencies and all Member Agencies must approve the proposed amendments.

ANALYSIS:

The following amendments to the Agreement are proposed:
· Page 1: The amendments list the date of the proposed amendment and clarify when the original Agreement was adopted.

128
File #: 23-1456 Meeting Date: 12/5/2023
· Page 2: The amendment adds the last date the Agreement was restated and amended. · Page 7:
o Section 3.01: The amendment clarifies the ongoing membership of the ILJ. o Section 3.02: The amendment confirms that the Orange County Chiefs’ and Sheriff’s Association shall appoint six Board Members and one alternate Board Member who may serve as a voting member in the event less than all six voting Board Members are present when a vote is called.
· Page 8:
o Section 3.02: This amendment clarifies that Board Members that do not serve in an elected position may be removed for any reason by their respective appointing authorities and differentiates elected officials who may only be removed by recall. o Section 3.03: This amendment requires that each Board Member shall have at least one alternate, and no more than two alternates, with the exception of the elected Board Members who shall have at least one alternate and no more than three alternates. o Section 3.04: This amendment distinguishes non-voting Member Agency representatives from the public for purposes of continuing to engage in discussion separate and apart from public comment.
· Page 11:
o Section 3.16: This allows the Board latitude to appoint legal counsel as it sees fit and mirrors the language of the Board’s ability to appoint an Executive Director. · Page 22:
o Section 8.01: The amendment allows any future amendments to be executed in digital format, by digital signatures, and in counterparts.
· Page 25:
o The amendment removes the requirement that an Agency’s mayor must execute an amendment to the Agreement in recognition of the fact that some or all Member Agencies may have delegated the ability to approve an amendment to the Agreement to a designee of the City Council and that not all Member Agencies have a mayor.

ALTERNATIVES:

There were no alternatives considered for the recommended action.

FISCAL REVIEW:

No fiscal impact.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this report and documents and approved them as to form.

129
File #: 23-1456 Meeting Date: 12/5/2023
CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:
· Strengthen the Public’s Safety and Improve the Quality of Life CONCLUSION:

Staff recommends the City Council review and approve the proposed amendments to the Joint Powers Agreement for further review and approval by the Members Agencies.

130
1 RESTATED AND AMENDED JOINT POWERS AGREEMENT
FOR

INTEGRATED LAW & JUSTICE AGENCY FOR ORANGE COUNTY
(ILJAOC)

This Amended Joint Powers Agreement (Agreement) is made and entered into by and between the listed cities, other entities, and County of Orange listed below, collectively referred to as “Member Agencies”. This Amendment to the Agreement is dated October 24, 2022 for reference purposes.

Member Agencies
Anaheim Fountain Valley La Palma Santa Ana
Brea Fullerton Laguna Beach Seal Beach
Buena Park Garden Grove Los Alamitos Superior Court of CA, County of Orange Costa Mesa Huntington Beach Newport Beach Tustin
County of Orange Irvine Orange Westminster
Cypress La Habra Placentia University of CA, Irvine Police Department California State University, Fullerton Police Department

R E C I T A L S
WHEREAS, the Member Agencies entered into an Agreement entitled “Joint Powers Agreement for Integrated Law & Justice Agency for Orange County” originally dated September 3, 2008 to create the Integrated Law and Justice Agency for Orange County; and
WHEREAS, the Member Agencies previously restated and amended said Joint Powers Agreement on June 8, 2015; and
131
2 WHEREAS, the Member Agencies desire to restate and amend said Joint Powers Agreement; and
WHEREAS, the Member Agencies have and possess the power and authorization to finance, organize, and establish a public agency to facilitate the integration and sharing of criminal justice information for the benefit of the lands and inha bitants within their respective boundaries; and
WHEREAS, the Member Agencies propose to join together to establish, operate, and maintain an agency for the benefit of their respective lands and inhabitants; and WHEREAS, it is in the public interest to p rovide a means by which other public agencies may request services for the benefit of their lands and inhabitants; and WHEREAS, the Member Agencies anticipate that from time to t ime it may be necessary to amend this Agreement and/or consider adding new Member Agencies; NOW, THEREFORE, for and in consideration of the mutual p romises and covenants contained herein, the parties hereto agree as follows:

I

P U R P O S E

1.01 The purpose of the Integrated Law and Justice Agency for Orange County (ILJAOC) is to cooperate with each Member Agency in the exercise of some or all of their powers to establish a separate agency to facilitate the integration and sharing of criminal justice information/data in the manner set forth in this Agreement.

1.02 Each Member Agency expressly retains all rights and powers to finance, plan, develop, construct, equip, maintain, repair, manage, operate, and control equipment, facilities, properties, projects, and information that it deems in its sole discretion to be necessary or desirable for its own information system needs, and that are authorized by the laws governing it. This Agreement shall not be interpreted, and the ILJAOC created herein, shall not have authority to impair or control any of the Member Agencies' respective rights, powers, or title to such equipment, facilities, properties, information, and projects, nor shall 132
3 any Member Agency be required to provide additional personnel, equipment, or services to the ILJAOC, which are not already a part of the Member Agency’s current operational costs, or which requires them to modify their non -ILJAOC systems or services, without their consent and full cost reimbursement from other Member Agencies or other revenue sources.

1.03 Each Member Agency expressly retains all rights and powers to use other funds or funding sources to finance, plan, develop, construct, equip, maintain, repair, manage, operate, and control equipment and facilities for their information services.

Nothing in this Agreement shall be construed to require a Member Agency (i) to disclose any information that the Member Agency determines, in its sole discretion, it does not have the ability or authority to disclose, or (ii) to do any act that the Member Agency determines, in its sole discretion, is contrary to law or public policy.

1.04 The ILJAOC is intended to provide criminal justice and law enforcement officials who have a need and right to know, with comprehensive, timely, and accurate information about a criminal suspect or offender, including identity, criminal history, and current justice status. In addition, it is intended to a) Allow criminal justice practitioners to maintain legacy databases and share only information that has been agreed upon in advance by a majority vote of the Board or the individual agency affected.
b) Reduce re dundant document preparation, data entry, transmission, and storage.
c) Strive to identify and achieve common interests to enhance public safety and due process.
d) Maintain individual privacy rights, preserve protections agencies have for public records and promote appropriate access controls and security. e) Support the development of effective criminal justice policy in keeping with the objectives of the Orange County Integrated Law & Justice Strategic Plan 133
4 (“Strategic Plan”) adopted by the Orange County Chiefs & Sheriff’s Association in April 2001, and any amendments to that plan as approved by a majority vote of the Board.
f) Strive for the compatibility of automated systems and processes among the various components of the Orange County Criminal Justice System. g) Acknowledge that each Member Agency is responsible for internal agency security for their records, technical support, etc.
h) Recognize that in order to achi eve overall success, resources (personnel, software, hardware, etc.), will be shared willingly and in some cases unequally by the Member Agencies, as long as that cooperation does not adversely impact the mission of the sharing member.
i) Allow the Member Agencies to work together to implement the adopted Strategic Plan (and subsequent amendments to that plan), for an Integrated Law & Justice System through the information sharing which will result from that collaborative effort.

1.05 Member Agencies are not required to seek approval from the ILJAOC to purchase, install, or modify their own (non-ILJAOC owned) equipment, services, or work performed in conjunction with any legislative mandate/authority granted to or required of Member Agencies in order to carry out their respective responsibilities. Furthermore, the ILJAOC has no power or authority to control, in terfere with, or inhibit Member Agencies from conducting their own internal business and/or providing their own (non -ILJAOC owned) resources or services to other entities , which may or may not be members of or served by the ILJAOC. Any changes to software or additional hardware that have been integrated into a Member Agency’s existing infrastructure as part of a requirement to implement the initiatives approved by the ILJAOC Governing Board will become the sole property of that Member Agency, when without those enhancements, the agency could no longer operate their systems independent of the ILJAOC. 134
5 1.06 Member Agencies may modify, upgrade, or otherwise alter any of their internal systems or processes without approval of the ILJAOC, as long as those modifications do not inhibit the exchange of offender data and systems implemented and/or funded by the prior action of the ILJAOC. Notwithstanding anything to the contrary herein, a Member Agency shall have no obligation to seek approval from the ILJAOC for any modification to that Member Agency’s internal systems or processes that is mandated by the State, or by any law or regulation governing the affected Member Agency.

1.07 In gathering and sharing information, and in all other respects in performing acts related to this Agreement, the parties will comply with all applicable laws, rules, and regulations.

II

C R E A T I O N O F T H E I N T E G R A T E D L A W & J U S T I C E

A G E N C Y F O R O R A N G E C O U N T Y

2.01 By this Agreement, the Member Agencies hereby create a separate legal entity to be known as the Integrated Law & Justice Agency for Orange County ("ILJAOC").

The Member Agencies may agree on a different name for the ILJAOC.

2.02 The ILJAOC shall possess in its own name, and the Member Agencies delegate to it, the following enumerated powers:
a) To make and enter into contracts consistent with this Agreement, including, but not limited to, contracts to purchase and/or dispose of supplies and equipment to carry out the implementation of the Strategic Plan and any adopted amendments to that plan.
b) To receive comp ensation, gifts, contributions, and donations of property, funds, services, and other forms of financial assistance from persons, firms, corporations, and any governmental entity.
c) To sue and be sued in its own name.
135
6 d) To apply for an appropriate grant or grants under any Federal, State, or local programs for assistance in developing any of its programs or providing services to other public entities.
e) To appoint committees, adopt rules, regulations, policies, by -laws, and procedures governing the operation of the ILJAOC.
f) To add Member Agencies to the ILJAOC as approved by the ILJAOC Board in accordance with the terms of this Agreement.
g) To execute agreements and resolutions consistent with the terms of this Agreement.
h) To appoint/hire officers, employees, and/or agents.

2.03 Said powers shall be exercised in the manner provided by California law, including, without limitation, the Joint Exercise of Powers provisions of Government Code section 6500, et seq., and, except as expressly set forth herein, the Treasurer/Controller shall be subject to the restrictions upon the manner of exercising such powers as are imposed upon the Member Agency whose emp loyee or officer is designated as the ILJAOC Treasurer/Controller pursuant to Section 3.12 below. The Member Agency’s Treasurer/Controller appointed by the Governing Board shall serve a minimum three-year term at the discretion of the Board, so as to minimize any disruptions in carrying out his/her responsibilities.

2.04 Except as provided herein, the member agencies agree that all supplies and equipment purchased by the ILJAOC shall be owned and controlled by the ILJAOC as its sole and separate property and not as property of any Member Agency.

2.05 The ILJAOC shall operate as a separate legal entity and incur debt, separate and apart from the Member Agencies, and its debts, obligations, and liabilities shall be its own and not that of the Member Agencies, except as specifically provided for herein.
136
7 III

O R G A N I Z A T I O N

3.01 The membership of the ILJAOC shall be the original Member Agencies, and any additional Agencies whose admission is unanimously approved, in accordance with the terms of this Agreement, by the ILJAOC Governing Board, but shall exclude any Agencies that have opted to withdraw.

3.02 The ILJAOC shall be governed by a voting Board consisting of six (6) Member Police Chiefs, each elected for a three-year term by the Orange County Chiefs’ & Sheriff’s Association to represent those Member Agencies with Police Departments. The Orange County Chiefs’ & Sheriff’s Association shall also designate one alternate Member Police Chief to serve as a voting member in the event less than six voting Board Members are present when a vote is called. In addition to the Police Chief representatives, other voting members of the Board will be the Sheriff, the District Attorney, the Chief Probation Officer, the Public Defender, one (1) representative from the Orange County Executive’s Office, who will serve at the County of Orange CEO’s pleasure, the Presiding Judge of the Orange County Superior Court, the Chief Executive Officer of the Orange County Superior Court, and three (3) City Manager representatives, who shall be elected for a minimum of three- year terms by the Orange County City Managers Association, with at least one (1) of those City Manager represen tatives being from a “contract city” in the County. Each Board member, or in the absence of a Board member, an alternate designated in advance by each said Board Member, shall have one vote on all matters before the Board. Such alternate members may be replaced from time-to-time at the appointing Board Member’s discretion.

All non-elected Board Members may be removed with or without cause by their respective appointing authorities.

3.03 Each Board Member, with the exception of the Sheriff, District Attorney, and Public Defender, shall designate at least one alternate and no more than two alternates to attend meetings and vote on behalf of the Board Member’s respective Member Agency. The Sheriff, District Attorney, and Public Defender shall each designate at least one alternate 137
8 and no more than three alternates to attend meetings and vote on behalf of the Board Member’s respective Member Agency.

3.04 The representatives of non -voting Member Agencies shall be permitted to engage in discussion of agenda items with voting Board Members, including the time period after a motion has been made and before a vote is taken, and shall not be considered members of the public at any ILJAOC meeting for purposes of public comment.

3.05 Each voting Board member shall hold office until a successor is selected, elected, hired or appointed under the powers of this Agreement and each Member Agency. The term of a Board member or alternate (both voting and non-voting) who is a public official or employee of a Member Agency shall terminate upon such Board Member leaving his or her position with the Member Agency. The vacancy of such a member who has left his or her position shall be filled by selection, election, or appointment according to the selection process adopted by this Agreement and the Member Agency whose representative has left his or her position.

3.06 Board members and alternates shall not receive compensation for their service on the ILJAOC Board, but they may be reimbursed by the ILJAOC for reasonable expenses incurred in conducting the business of the ILJAOC, as provided in this Agreement, when the expenses are not paid or reimbursed by their respective employing Member Agencies.

3.07 The principal office of the ILJAOC shall be established by the Board and shall be located within the County of Orange. The Board may change the principal office from one location to another within the County of Orange. Any change of address shall be noted by the Board but shall not be considered an amendment to this Agreement.

3.08 The Board shall meet at a location as may be designated by the Board. The time and place of regular meetings of the Board shall be determined by resolution adopted by the Board. A copy of such resolution shall be furnished to the Member Agencies. All meetings of the Board, including regular, adjourned, and special meetings, shall be called 138
9 and held in a manner as provided in the Ralph M. Brown Act, Chapter 9, Division 2, Title 5 of the California Government Code commencing with section 54950 et seq., as amended

3.09 All of the powers and authority of the ILJAOC shall be exercised by the Board unless specifically delegated, to the extent permitted by law, or reserved to the Member Agencies under this Agreement. Unless otherwise provided herein, each voting Boar d Member shall be entitled to one (1) vote. Except as otherwise provided herein, a majority of the full voting membership of the Board or their alternate present at a properly noticed meeting, shall constitute a quorum for purposes of transacting business. A majority vote of that quorum may adopt any motion, resolution, or order and take any other action appropriate to carry forward the objectives of the ILJAOC pursuant to this Agreement, with the exception of the adoption of the budget or other appropriations in excess of the adopted budget as outlined in Section 4.04 of this Agreement, in which case a two-thirds majority of the entire voting membership or their alternates is required for approval.

3.10 The Board shall designate a recording secretary to establish, distribute, and post agenda notices as required by law, keep the minutes of all open meetings of the Board, and cause a copy of such minutes to be forwarded to each Member Agency within a reasonable time after each meeting.

3.11 The Board may adopt policies, rules, and regulations for the conduct of its administrative affairs and that of the ILJAOC as may be required and that are consistent with this Agreement.

3.12 Where this Agreement requires an approval of a resolution or ordinance by any Member Agencies in any matter, the approval shall be evidenced by a certified copy of the resolution or ordinance of the governing body of such Member Agency filed with the ILJAOC. It shall be the responsibility of the Board to provide certified copies of said actions.

3.13 On an annual basis, the Board shall elect two Board members to act as Chair and Vice-Chair of the Agency for the purpose of conducting the Board meetings and performing other duties as required. The Vice-Chair may carry out all the duties of the Chair in his/her absence.
139
10 3.14 The Board shall appoint an officer or employee of a Member Agency to hold the offices of Treasurer and Controller ("Treasurer/Controller"), whose duties shall be in conformance with Government Code sections 6505 and 6505.5, and whose salary, if any, shall be established by the Board. The Treasurer/Controller shall also administer all contracts subsequent to the Board's approval and shall contract with a certified public accountant to make an annual audit of the accounts and records of the IL JAOC as provided in Government Code section 6505. The annual audit shall be submitted to the Board and each Member Agency when completed. The budget, covering a budget cycle set by the Board, shall be prepared by the Treasurer/Controller for the approval by the Board. The ILJAOC's investment policies shall be the policies of the Member Agency of the Treasurer/Controller, as those may be modified by the Board of the ILJAOC. The cost of the Treasurer/Controller in carrying out his/her duties, including, w ith limitation, any outside professional services, shall be reimbursed by the ILJAOC.

3.15 The Board shall have the power to appoint/hire additional officers, employees, or agents. Any officer, employee, or agent of the ILJAOC who is an officer, employee, or agent of any of the Member Agencies will continue to be subject to the Member Agency’s personnel system. However , the ILJAOC may hire employees that are subject to the personnel system of the ILJAOC and said employees shall not be considered employees of any Member Agency. Any person from any Member Agency appointed by the Board to fulfill a staff position with the ILJAOC shall possess appropriate qualifications to carry out his or her responsibilities.

3.16 The Board may appoint legal counsel, by contract or oth erwise, to provide legal counsel to the Board, Executive Director, and any other ILJAOC staff regarding the operations of the ILJAOC.

3.17 The officers of the ILJAOC Board shall perform all duties customary and appropriate to their respective offices and:
a) After approval by the ILJAOC Board, the Board Chair shall sign all contracts on behalf of the ILJAOC Board.
140
11 b) The secretary shall perform such duties as assigned by the Board and shall keep minutes of the Board meetings.
c) The Treasurer/Controller shall be bonded i n the amount to be determined by the Board and the bond fee shall be paid by the ILJAOC. The Treasurer/Controller shall perform the duties as set forth in this Agreement.

3.18 The Board may appoint an Executive Director by contract or otherwise to oversee day-to-day operations of the ILJAOC. The Executive Director shall manage the daily operations of the ILJAOC and supervision of any other ILJAOC employees.

3.19 All of the privileges and immunities from liability, exemption from laws, ordinances and rules, all relie f, pension, disability, worker's compensation, and other benefits which apply to the activities or omissions of officials, officers, employees, volunteers, or agents of any of the Member Agencies when performing their respective functions for their respective Member Agency shall apply to such person(s) to the same degree and extent while they are assigned to the ILJAOC to perform and are performing any of the functions and other duties of the ILJAOC pursuant to authority granted by this Agreement. None of the officials, officers, agents, volunteers, or employees of a Member Agency appointed to the Board or performing services at the direction of the ILJAOC shall be deemed by reason of their appointment or service to be employed by any of the other Member Agencies or the ILJAOC or be subject to any of the requirements of the other Member Agencies.

IV

B U D G E T A N D D I S B U R S E M E N T S

4.01 The Board shall adopt a budget for the ensuing fiscal year(s) pursuant to procedures developed by the Board. At the conclusion of each fiscal year, the Treasurer/Controller shall make a report to the Board regarding the excess or deficiency of revenues ove r (or under) expenditures. Such report shall include “budget to actual” comparisons based upon the previously adopted budget. Upon receipt of the report, the Board shall determine what extent, if any, unexpended budgetary appropriations shall be 141
12 re-appropriated or whether any excess of revenues over expenditures shall be allocated or expended.

4.02 The Treasurer/Controller shall draw warrants upon the approval and written order of the Board or the Board’s Executive Director. The Board shall requisition the payment of funds only upon approval of such claims or disbursements and such requisition for payment in accordance with rules, regulations, policies, procedures, and by-laws adopted by the Board.

4.03 All funds received by the Treasurer/Controller for services prov ided by the ILJAOC, will be placed in object accounts, and the receipt, transfer, or disbursement of such funds during the term of this Agreement shall be accounted for in accordance with generally accepted accounting principles applicable to governmental entities. There shall be strict accountability of all funds. All revenues and expenditures shall be reported to the Board on a quarterly basis, unless otherwise required by the Board.

4.04 All expenditures within the approved budget shall be made upon the approval of the Treasurer/Controller in accordance with the rules, policies, and procedures adopted by the Board. No expenditure in excess of those budgeted shall be made without the two -thirds majority approval of the entire Board, and the budget shall thereafter be revised and amended.

4.05 The records and accounts of the ILJAOC shall be audited annually by an independent certified public accountant and any cost of the audit shall be paid by the ILJAOC. The minimum requirements shall be those prescribed by the State Controller under California Government Code section 26909 and in conformance with generally accepted auditing standards. Copies of such audit report shall be filed with each Member Agency no later than fifteen (15) days after receipt of said audit by the Board.

4.06 The Member Agencies have agreed by resolution through their respective Governing Authorities to fund on a shared basis, the costs of the ILJAOC operations, and capital in excess of any grant funds, through annual budget appropriations. Each Member Agency’s agreement to provide such funds in fiscal years after the fiscal year in which the 142
13 original ILJAOC Joint Powers Agreement was executed, is contingent upon appropriation by the governing body of that Member Agency of sufficient funds for that purpose. The subject resolutions shall not limit the authority of each Member Agency to cease appropriations for the ILJAOC operations as determined by their respective Governing Authorities, provided, however, that a decision to cease appropriations shal l be subject to the terms of Section 6.02 below. In addition, where the ILJAOC has an obligation under the terms of this Agreement to reimburse a Member Agency for providing personnel, equipment, and/or services to the ILJAOC, the Member Agency providing such personnel, equipment, and/or services may waive its right to reimbursement. When a Member Agency incurs costs eligible for reimbursement under the terms of this agreement, those costs shall include only those which are not part of the Member Agency’s pre-existing infrastructure/operation prior to the effective date of this Agreement. They also shall not include overhead charges. Costs for the ILJAOC operations referenced in accordance with this Section 4.06 shall be shared as follows:
a) Member Agencies w ith Municipal Police Departments and the Orange County Sheriff’s Department, which serves the unincorporated area of the County as well as their “contract cities,” shall be determined on a per capita served basis, with the combined total amount not to exce ed 80% of total costs.
b) County of Orange; an amount not to exceed 15% of total costs. c) The Superior Court of California, County of Orange; an amount not to exceed 5% of total costs.
d) The University of California Police Department; an amount not to exceed

0.75% of total costs.
e) California State University, Fullerton Police Department, an amount not to exceed 0.75% of total costs.

4.07 The Member Agencies acknowledge and agree that the ILJAOC will act as a conduit for the management, direction, and provision of integr ated services to the 143
14 Member Agencies and to other public agencies that contract with ILJAOC for such services.

4.08 Based on information provided by the Executive Director or other designated representatives of the ILJAOC, the Treasurer/Controller shall keep a written account of any services provided to other public agencies by the ILJAOC. All revenues received from other public agencies contracting or receiving services from the ILJAOC for services shall be used to offset the costs incurred by the ILJAOC. The Governing Board shall determine whether those funds shall be placed in a Capital Reserve or otherwise allocated in the ILJAOC’s Budget and/or projected costs to Member Agencies.

4.09 In establishing rates for services to non -Member Agency public agencies, the Board shall assure that the contracts for such services provide for the reimbursement of the actual expenses of providing all services of the ILJAOC, including insurance coverage for the ILJAOC’s personnel and equipment. Payment for the ILJAOC services by contracting public agencies shall be made on a monthly basis, or no less frequently than on a quarterly basis (unless paid in advance) to the Treasurer/Controller of the ILJAOC. The Treasurer/Controller shall provide a written quarterly account to the Board of all revenues and expenses of the ILJAOC services to other public agencies.

4.10 The ILJAOC budget shall include the provision for a Capital Replacement fund that will provide for, among other things, the replacement of the equipment owned and operated by the ILJAOC. The ILJAOC Board annually shall recommend to the Member Agencies amounts needed for Capital Replacement. The amount of the provision for Capital Replacement in each ILJAOC annual budget will depend on the amounts appropriated by the Member Ag encies for such purposes during each fiscal year. Said funds shall be transferred to the ILJAOC monthly by the Member Agencies for deposit in the ILJAOC’s Capital Replacement fund. The actual purchase of new equipment and disposal of unneeded equipment sh all be done whenever determined appropriate and justified by the Board.

4.11 All revenues derived from service contracts with other public agencies shall be maintained in a separate revenue account for the ILJAOC. The Treasurer/Controller 144
15 shall be responsible for accounting for all such revenue. The Board shall be responsible for determining the appropriate allocation of such funds as part of the budget adoption process.

V

L I A B I L I T I E S

5.01 Except as provided in Section 8.05 of this Agreement, the ILJAOC and the Member Agencies agree, to the extent allowed by law, that the Member Agencies shall be fully protected from any loss, injury, liability, damage, claim, lawsuit, cost, or expense arising out of, or in any way related to, the performance of this Agreement by the ILJAOC.

Accordingly, the provisions of this Agreement should be broadly construed in favor of protection for the Member Agencies and interpreted to provide the fullest possible protection to the Member Agencies and Member Agency's officials, officers , agents, volunteers, and employees. ILJAOC acknowledges that the Member Agencies would not have entered into this Agreement in the absence of the commitments of the ILJAOC as specified in this Article V.

5.02 The Member Agencies acknowledge that each Member A gency may be assigning its own personnel to a cooperative pool of personnel to provide service to the ILJAOC. The ILJAOC shall be solely responsible for and retain all debts, liabilities, and other obligations for all activities of the ILJAOC, and shall m aintain sufficient insurance coverage in effect at all times to cover any such claim, loss, liability, or obligation, as recommended by the ILJAOC Risk Manager and approved by the Board.

5.03 Except as provided in Section 8. 05, the ILJAOC shall protect, defend, indemnify, and hold free and harmless the Member Agencies and their respective elected and appointed boards, officials, officers, agents, volunteers, and employees from and against any and all liabilities, damages, loss, cost, claims, expenses, actions, o r proceedings of any kind or nature caused by ILJAOC employees or employees of Member Agencies who are performing ILJAOC functions, including, but not by way of limitation, injury or death of any person, injury or damage to any property, including consequential damages and attorney’s fees and costs, resulting or arising out of or in any 145
16 way connected with the negligent acts or failure to act in the course and scope of carrying out their responsibilities in the performance of their duties to the ILJAOC. In addition, and without limiting the foregoing indemnification obligation, except as provided in Section

5.04, the ILJAOC will maintain sufficient insurance coverage in effect at all times as recommended by their Risk Manager, to cover any such damage claim, loss, cost, expense, action, proceeding, liability, or obligation.

5.04 Any contract with a non -member public agency (“non -Member Agency”) receiving services from the ILJOAC shall include a mutual indemnification provision wherein the non -Member Agency and the ILJAOC shall mutually agree to defend and indemnify the other in an amount equal to its proportionate share of liability on a comparative fault basis. The contract shall also provide that: 1) The indemnity obligation shall exist with respect to any claim, loss, liability, damage, lawsuit, cost, or expense that arises out of, or is in any way related to, the performance of services pursuant to the contract; and 2) The obligation of the non -Member Agency and the ILJAOC pursuant to the indemnification provis ion will extend, without limitation, to an injury, death, loss, or damage which occurs in the performance of the contract and that is sustained by any third party, any agent, or contractor of the non -Member Agency or the ILJAOC.

Notwithstanding the forego ing, in situations where a non -Member Agency lacks the authority to enter into an agreement containing the specific terms specified above in this Section 5.04, the ILJAOC may enter into an agreement without such terms (or including only some of those terms ) only after (1) a finding by and affirmative vote of a two -thirds majority of all voting Board members, or their alternates, that the risk of entering into such an agreement is outweighed by the benefit to be obtained by entering into the agreement, and ( 2) a determination by the ILJAOC’s Risk Manager that insurance provisions applicable to the agreement are adequate given the specific risks presented.

5.05 Member Agencies shall be responsible for the continued provision of worker's compensation coverage for the officers or employees of the Member Agencies that are assigned to provide services to the ILJAOC and/or serve as officers or employees of the ILJAOC. In this regard, each Member Agency shall defend, indemnify, and hold harmless the ILJAOC and any other Member Agencies, and their respective officials 146
17 officers, employees, contractors, agents, and representatives with respect to any claim, loss, liability, damage, lawsuit, cost, or expense, including attorney’s fees and costs, that arises out of, or is in any way related, to any industrial/worker compensation injury sustained by an officer or employee of the indemnifying Member Agency during the performance of service to the ILJAOC or the other Member Agencies under this Agreement.

5.06 ILJAOC shall employ the principles of sound risk management in its operations. Risks of loss shall be identified, evaluated, and treated in a manner that protects the ILJAOC and each Member Agency from adverse financial consequences.

This may be accomplished in part through the purchase of appropriate commercial insurance.

The Risk Manager, or his/her designee, of one Member Agency shall be designated by the Board, with the conse nt of the Member Agency, as the “ILJAOC Risk Manager” and shall act in an advisory capacity to the ILJAOC Board to provide guidance in the area of risk management, loss control, insurance procurement, and claims management. Should a Member Agency Risk Man ager not be available to serve the ILJAOC, the Board may designate someone who has comparable experience to serve in that capacity. The ILJAOC Risk Manager will be responsible for maintaining the original insurance policies and other risk management and insurance documents.

During the term of this Agreement, the ILJAOC shall purchase and maintain sufficient amounts of commercial insurance coverage at the equally shared cost to the Member Agencies. The types, limits, retention levels, deductibles, policy f orms, and carriers providing the above required insurance coverages shall be recommended by the ILJAOC Risk Manager to the Board for its approval, consistent with this Agreement.

VI

A D M I S S I O N A N D W I T H D R A W A L O F P A R T I E S

6.01 Additional public agencies may become Member Agencies of the ILJAOC upon such terms and conditions as are determined by the Board, and upon the unanimous 147
18 consent of the ILJAOC Governing Board, so long as such addition(s) are not projected to increase costs to existing Member Agencies. Upon approval by the ILJAOC Governing Board, a written amendment to this Agreement shall be executed by all of the existing Member Agencies, as well as the additional Member Agency. Should increased costs to existing Member Agencies be anticipated due to the add ition of a new public agency , unanimous approval must be received from the governing bodies of the existing Member Agencies, as evidenced by approval of resolutions and the execution of a written amendment to this Agreement by all of the Member Agencies, i ncluding the additional Member Agency.

6.02 Member Agencies have the right to withdraw from the ILJAOC. Such withdrawals, either voluntarily or involuntarily, shall be conditioned as follows:
a) Involuntary withdrawal shall mean those circumstances where a Member Agency must withdraw due to fiscal or budgetary impact of that Member Agency that results in the discontinuance or reduction of the funding for personnel, services, or equipment by that Member Agency. b) In the case of a voluntary withdrawal, written notice shall be given one hundred eighty (180) days prior to the end of a fiscal year except that such notice requirement may be shortened (i) by unanimous approval of the Board members present at the meeting at which the Board considers shortening the notice requirement, or (ii) upon breach of this Agreement by the ILJAOC or any Member Agency, in which case the withdrawing Member Agency may withdraw effective at any time.
c) Neither voluntary nor involuntary withdrawal shall relieve the withdrawing Member Agency of its obligations for its proportionate share of any debts or other liabilities incurred by the ILJAOC prior to the effective date of the Member Agency's withdrawal (with the exception of new purchases of capital equipment after the date of the Member Agency ’s notice of withdrawal), nor any liabilities imposed upon or incurred by the Member 148
19 Agency pursuant to this Agreement prior to the effective date of the Member Agency's withdrawal.
d) The withdrawing Member Agency shall retain all rights and claims relating to revenues received by the ILJAOC during the time period that the Member Agency provided personnel, services, or equipment under the ILJAOC direction.
e) The withdrawing Member Agency shall be entitled to remove its personnel and any equipment whose title was not transferred in writing to the ILJAOC from the possession and control of the ILJAOC, regardless of the impact on the ILJAOC or its continued operation. The withdrawing Member Agency may also recover any other equipment no longer needed by the ILJAOC, including equipment it previously transferred to the ILJAOC, according to the terms and conditions determined by the Board in its sole discretion to be fair and equitable. The ILJAOC Board may choose to exempt a Member Agency from any of the listed conditions, but may not impose any conditions other than those listed.

V I I

T E R M I N A T I O N A N D D I S P O I S T I O N O F A S S E T S

7.01 The ILJAOC shall continue to exist and exercise the powers herein until this Agreement is terminated by a vote of two -thirds of the entire Board; pro vided, however, that no termination shall be complete and final until the ILJAOC has satisfactorily disposed of all financial obligations and claims, distributed all assets, and performed all other functions deemed necessary by the Board to conclude the affairs of the ILJAOC.

7.02 Termination shall occur upon:
a) The written consent of all Member Agencies; or
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20 b) Upon the withdrawal from the ILJAOC of a sufficient number of the Member Agencies that results in a lack of effectiveness as determined by a two - thirds vote of the remaining Board Members; and

1. Full satisfaction of all outstanding financial obligations of the ILJAOC; and

2. All other contractual obligations of the ILJAOC have been satisfied.

7.03 In the event of the termination of this Agreement, any funds remaining following the discharge of all obligations shall be disposed of by returning to each current Member Agency of the ILJAOC immediately prior to the termination of this Agreement, a share of such funds proportionate to the contribution made to the ILJAOC by said Member Agency, to the extent determined by the Board in its sole discretion to be fair and equitable.

7.04 Notwithstanding any other provisions of this Agreement, the Member Agencies agree to abide by the following procedure for selling of equipment in the event this Agreement is terminated. The equipment shall be given a fair market value by an appraiser agreed upon by the Board. Before the equipment is sold on the open market, the Member Agencies each shall have the right to purchase the equipment at a price and under terms as agreed upon by the Board, which may include a financing arrangement for the purchaser to allow for a transition period after the termination of this Agreement.

If an agreement cannot be reached concerning a purchase of the equipment, then it shall be sold on the open market. Proceeds from the sale of equipment upon termination of the Agreement shall be distributed to the Member Agencies in a manner consistent with the cost-sharing format outlined in Paragraph 4.06 (a), (b), and (c) of this Agreement, and any modifications to that formula adopted by the Board.

V I I I

M I S C E L L A N E O U S

8.01 Amendments
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21 Except as otherwise specified in this Agreement, this Agreement may be amended with the unanimous approval of all Member Agencies; provided, howev er, that no amendment may be made that would adversely affect the interests of the owners of bonds, letters of credit, or other financial obligations of the ILJAOC. An Amendment to this Agreement may be executed in any number of actual or digital counterpa rts. The counterparts together will be taken to constitute one and the same instrument. An Amendment will have effect upon execution by all Member Agencies.

8.02 Notices
Any notice or instrument required to be given or delivered by depositing the same in any Un ited States Post Office, registered or certified, postage prepaid, addressed to the Member Agencies, shall be deemed to have been received by the Member Agency to whom the same is addressed at the expiration of five (5) days after deposit of the same in th e United States Post Office for transmission by registered or certified mail as aforesaid.

8.03 Effective Date
This Agreement shall be effective at such time as this Agreement has been executed by the majority of the voting Member Agencies enumerated in the introduction of this Amended Agreement.

8.04 Conflicts of Interest
No official, officer or employee of the ILJAOC or any Member Agency shall have any financial interest, direct or indirect, in the ILJAOC. Nor shall any such officer or employee participate in any decision relating to the ILJAOC that affects his or her financial interests or those of a corporation, partnership, or association in which he or she is directly or indirectly interested, in violation of any State law or regulation.

8.05 Mediation
a) Any controversy or claim between any Member Agencies, or between any such Member Agency or Member Agencies and the ILJAOC, with respect to the ILJAOC's operations, or to any claims, disputes, demands, 151
22 differences, controversies, or misunderstandings arising under, out of, or in relation to this Agreement, shall be submitted to and determined by mediation.
b) The Member Agency desiring to initiate mediation shall give notice of its intention to every other Member Agency and the ILJAOC. Such notice shall designate such o ther Member Agencies as the initiating Member Agency intends to have bound by any award made therein.
c) Each Member Agency involved in the mediation shall bear its own legal costs, including attorney fees.

8.06 Partial Invalidity
If any one or more of the terms, provisions, sections, promises, covenants or conditions of this Agreement shall to any extent be adjudged invalid, unenforceable or void for any reason whatsoever by a court of competent jurisdiction, each and all of the remaining terms, provisions, sectio ns, promises, covenants and conditions of this Agreement shall not be affected thereby and shall be valid and enforceable to the fullest extent permitted by law.

8.07 Successors
This Agreement shall be binding upon and shall inure to the benefit of the successors of the Member Agencies hereto.

8.08 Assignment
A Member Agency shall not assign any rights or obligations under this Agreement without the written consent of all other Member Agencies.

8.09 Execution
The Governing Authorities of the Member Agencies enumerated herein have each authorized execution of this Agreement, as evidenced by the authorized signatures below, respectively.

8.10 Entire Agreement
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23 This Agreement supersedes any and all other agreements whether oral or written, between the parties hereto with re spect to the subject matter hereof and contains all of the covenants and agreements between the parties with respect to said matter, and each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or othe rwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement or modification of this Agreement shall be effective only if executed in writing and signed by the ILJAOC and all Member Agencies.

Dated:
___________________________
CITY OF: ________________________

By: _____________________________
Title: ____________________________

ATTEST:

________________________________

Clerk of the City of ________________________

APPROVED AS TO FORM:

________________________________

City Attorney

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1457 Meeting Date: 12/5/2023
TITLE:

ACCEPTANCE OF THE 2022, 2023 AND 2024 EMERGENCY MANAGEMENT PERFORMANCE GRANT
DEPARTMENT: POLICE DEPARTMENT
PRESENTED BY: JASON CHAMNESS, CAPTAIN
CONTACT INFORMATION: JASON CHAMNESS, CAPTAIN, 714-754-5272 RECOMMENDATION:

Staff recommends the City Council:

1. Approve the Agreement to Transfer Funds for the 2022 Emergency Management Performance Grant Program (EMPG) (the “Agreement”) and authorize the City Manager to execute the agreement.

2. Adopt Resolution No. 2023-XX which authorizes the application for and acceptance of funds under the EMPG Program for Years 2022, 2023, and 2024 and authorizes the City Manager, or designee, to take all action necessary to obtain the funding.

3. Approve revenue and expense appropriations in the amount of $16,366 respectively, for the 2022 EMPG Program.

BACKGROUND:

The City of Costa Mesa has been participating in the EMPG Program since 2001. The program aims to encourage the development of comprehensive emergency management at the local level and improve mitigation, preparedness, response, and recovery capabilities for all hazards. The program provides minimal fiscal support for the City’s emergency management, disaster preparedness, training, and plan development.

The County of Orange is a grant recipient of the EMPG Program, and participating local jurisdictions, including Costa Mesa, are subrecipients. Annually, the County of Orange, acting through the Sheriff- Coroner Department/Emergency Management Division, in its capacity as the lead agency, applies for, receives, and accepts the EMPG Program funds from the California Governor’s Office of Emergency Services.

For year 2022, Costa Mesa has been awarded $16,366 in EMPG funds. In order to receive the 2022 EMPG grant funds, the City is required to execute the attached Agreement and adopt a resolution authorizing the application and acceptance of grant funding. The resolution grants authority for 2022 and two additional years but an Agreement for each fiscal year will need to be executed in the

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and two additional years but an Agreement for each fiscal year will need to be executed in the applicable fiscal year. Once the County of Orange receives the executed agreement and copy of the resolution authorizing the application for and acceptance of program funds, the County will transfer grant funds to the City, in arrears, for reimbursement of reasonable and permissible expenditures under the grant.

ANALYSIS:

The City puts forth significant efforts in citywide training, exercises and planning to ensure readiness for emergencies and/or disasters. The EMPG Program focuses on multi-agency coordination in preparedness for City employees and volunteers to support an Emergency Operations Center (EOC) activation during major emergencies and/or disasters.

The City has been awarded an amount not to exceed $16,366 in 2022 EMPG funds for the 2023 fiscal year. The 2022 grant funds will be used to purchase technology equipment for the city’s Emergency Operations Center and provide employee emergency response training.

The grant funding amount is sufficient to cover all costs associated with the equipment purchase and training.

ALTERNATIVES:

The City Council may elect not to participate in the EMPG Program; however, this alternative is not recommended as the City would miss a funding opportunity that would help support the City’s Emergency Preparedness Response and recovery efforts in preparing for a major disaster and/or emergency. The City must participate in activities required by the program to be prepared for and assist the community in mitigation, preparedness, response, and recovery efforts before and after any major disaster and/or emergency.

FISCAL REVIEW:

Upon approval of the Agreement and acceptance of the 2022 EMPG Program, revenue and expense appropriation in the amount of $16,366 respectively will be established for the grant.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this report, the Agreement to Transfer Funds, and the proposed resolution and approved them as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:
· Strengthen Public’s Safety and Improve the Quality of Life

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CONCLUSION:

Staff recommends the City Council:

1. Approve the Agreement to Transfer Funds for the 2022 Emergency Management Performance Grant Program (EMPG) (the “Agreement”) and authorize the City Manager to execute the agreement.

2. Adopt Resolution No. 2023- XX which authorizes the application for and acceptance of funds under the EMPG Program and authorizes the City Manager, or designee, to accept the 2022, 2023 and 2024 EMPG.

3. Approve revenue and expense appropriations in the amount of $16,366.00 respectively, for the 2022 EMPG Program.

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AGREEMENT TO TRANSFER FUNDS
FOR 2022 EMERGENCY MANAGEMENT PERFORMANCE GRANT PROGRAM

THIS AGREEMENT is entered into this ______ day of ________ 20____, which date is enumerated for purposes of reference only, by and between the COUNTY OF ORANGE, a politica l subdivision of the State of California, hereinafter referred to as “COUNTY ,” and ___________________, a municipal corporation, hereinafter referred to as “SUBRECIPIENT.” WHEREAS, COUNTY, acting through its Sheriff -Coroner Department, hereinafter referre d to as SHERIFF, in its capacity as the lead agency for the Operational Area, has applied for, received and accepted the Emergency Management Performance Grant (hereinafter referred to as “the grant”) from the California Office of Emergency Services (“CalOES”).

WHEREAS, the purpose of the grant is to support comprehensive emergency management at the state, tribal and local levels and to encourage the improvement of prevention, protection, mitigation, response and recovery capabilities for all hazards , as se t forth in Attachment A hereto ( FEMA Preparedness Grants Manual), which is attached hereto and incorporated herein by reference.

NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

1. COUNTY shall transfer to SUBRECIPIENT grant funds, in arrears, as necessar y to reimburse SUBRECIPIENT for reasonable and permissible expenditures for the grant purposes. In order to obtain grant funds, SUBRECIPIENT shall comply with the instructions and submit to SHERIFF all required information and documentati on, as set forth in Attachment B (FY2022 EMPG Financial Management Forms Workbook), which is attached hereto and incorporated herein by reference.

2. Throughout their useful l ife, grant property and equipment shall be used by SUBRECIPIENT only for grant purposes in accordance with Attachment A hereto.

3. SUBRECIPIENT shall exercise due care to preserve and safeguard grant property and equipment from damage or destruction and shall provide regular maintenance and such repairs for grant property and equipment as are necessa ry, in order to keep said grant property and equipment continually in good working order.
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4. If grant property or equipment becomes obsolete, SUBRECIPIENT shall dispose of it only in accordance with the instructions of COUNTY or the agency from which COU NTY received the grant funds.

5. SUBRECIPIENT shall submit to the COUNTY grant program reporting documents and information in accordance with requirements set out in the Attachment C (FY2022 Emergency Management Performance Grant Program: California Supplemen t to the FEMA Preparedness Grants Manual; or, The State Guidance), which is attached hereto and incorporated herein by reference.

6. By executing this Agreement, SUBRECIPIENT agrees to comply with and be fully bound by this Agreement and all applicable prov isions of Attachments A, B, C, and D (Standard Assurances for all CalOES Federal Grant Programs ) hereto. SUBRECIPIENT shall notify COUNTY immediately upon discovery that it has not abided or no longer will abide by any applicable provision of this Agreement or Attachments A, B, C, or D hereto.

7. SUBRECIPIENT agrees to indemnify, defend and save harmless COUNTY and the agency from which COUNTY received grant funds, and their elected and appointed officials, officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, laborers, and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with SUBRECIPIENT’s performance of this Agreement, including Attachments A, B, C, and D hereto, and from any and all claims and losses accruing or resulting to any person, firm, or corporation who may be injured or damaged by SUBRECIPIENT in the performance of this Agreement, including Attachments A, B, C, and D hereto.

8. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by duly authorized representatives of the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto.

9. SUBRECIPIENT may not assign this Agreement in whole or in part without the express written consent of COUNTY.

10. SUBRECIPIENT shall provide to COUNTY all records and information requested by COUNTY for inclusion in quarterly reports and such other reports or records as COUNTY may be 158

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required to provide to the agency from which COUNTY received grant fund s or other persons or agencies.

11. For a period of three years after the final Federal Financial Report hereunder or until all claims related to this Agreement are finally settled, whichever is later, SUBRECIPIENT shall preserve and maintain all documents, papers and records relevant to the work performed or property or equipment acquired in accordance with this Agreement, including Attachments A, B, C, and D hereto. For the same time period, SUBRECIPIENT shall make said documents, papers and records available to COUNTY and the agency from which COUNTY received the grant funds or their duly authorized representative(s), for examina tion, copying, or mechanical reproduction on or off the premises of SUBRECIPIENT, upon request, during usual working hours.

12. SUBRECIPIENT and COUNTY shall be subject to examination and audit by the State Auditor General with respect to this Agreement for a period of three years after the final Federal Financial Report hereunder.

13. COUNTY may terminate this Agreement and be relieved of the payment of any consideration to SUBRECIPIENT if a) SUBRECIPIENT fails to perform any of the covenants contained in this Agreement, including the applicable terms of Attachments A, B, C, and D hereto, at the time and in the manner herein provided, or b) COUNTY loses funding under the grant. In the event of termination, COUNTY may proceed with the work in any manner deemed proper by COUNTY.

14. SUBRECIPIENT and its agents and employees shall act in an independent capacity in the performance of this Agreement, including Attachments A, B, C, and D hereto, and shall not be considered officers, agents or employees of COUNTY or SHERIFF o r of the agency from which COUNTY received grant funds.

15. By signing this Agreement, SUBRECEIPIENT understands and agrees that:
a. Failure to follow grant guidance, including those detailed below, will result in ineligibility for any reimbursement under the FY22 EMPG:
b. A SUBRECIPIENT representative must attend half of the Orange County Emergency Managers Organization meetings held from July 1, 2022 through June 30, 2024; 159

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c. SUBRECIPIENT must maintain National Incident Management System (N IMS) compliance;
d. For any personnel whose salary is charged to the grant, that specific individual must meet the training and exercise requirements set forth in the grant guidance; e. Only those expenditures specifically detailed in the Financial Management Forms Workbook are approved f or funding; any changes must be pre -approved by the California Office of Emergency Services;

IN WITNESS WHEREOF, the parties have executed this A greement in the County of Orange, State of California.

APPROVED AS TO FORM

COUNTY COUNSEL

By
Wendy J. Phillips, Senior Deputy

DATED: August 15 , 2023
COUNTY OF ORANGE, a political subdivision
of the State of California

By
Sheriff-Coroner
“COUNTY”

DATED: , 20

ATTEST:

City Clerk

DATED: , 20

SUBRECIPIENT

By

Title:

DATED: , 20

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Resolution No. 2023-_____

RESOLUTION NO. 2023-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,

CALIFORNIA, AUTHORIZING APPLICATION FOR AND ACCEPTANCE OF

EMERGENCY MANAGEMENT PERFORMANCE GRANT (EMPG) PROGRAM
REIMBURSEMENT ALLOCATION FOR FISCAL YEARS 2022, 2023, AND 2024 AND

AUTHORIZING THE CITY MANAGER, DIRECTOR OF FINANCE, AND EMERGENCY

SERVICES MANAGER TO TAKE ALL ACTIONS NECESSARY TO OBTAIN

PROGRAM FUNDS

THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA HEREBY FINDS, DETERMINES AND DECLARES AS FOLLOWS:

WHEREAS, the California Governor's Office of Emergency Services ("Cal OES") has made funds available through the Emergency Management Performance Grant ("EMPG") Program for the support of comprehensive emergency management at the state, tribal and local levels and to encourage the improvement of prevention, preparedness, mitigation, response and recovery capabilities for all hazards; and WHEREAS, the City of Costa Mesa ("City") wishes to participate in the EMPG Program for the fiscal years 2022, 2023, and 2024; and
WHEREAS, the County of Orange, a political subdivision of the State of California ("County"), will transfer to the City EMPG Program grant funds, in arrears, as necessary to reimburse the City for reasonable and permissible expenditures for grant purposes.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows:

Section 1. The City Council hereby approves the application for and acceptance of funds under the EMPG Program and authorizes the City Manager, Director of Finance, or Emergency Services Manager to execute all documents necessary to obtain the grant funds for Fiscal Years 2022, 2023, and 2024 and take all steps necessary to implement this resolution.

Section 2. The City Council hereby agrees:
(a) The City will provide all ma tching funds required for the grant project and that any cash match will be appropriated as required;
ATTACHMENT 2
161
Resolution No. 2023-_____

(b) Any liability arising out of the performance of the agreement shall be the responsibility of the City;
(c) Grant funds shall not be used to supplant expenditures controlled by the City Council;
(d) The City Council authorizes the City to apply for federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non -federal share of the project cost, if any) to ensure proper planning, management and completion of the project described in the application; and
(e) The City Manager is authorized to execute the agreement on behalf of the City.
162
Resolution No. 2023-_____

PASSED AND ADOPTED this 5th day of December, 2023.

_________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

_____________________
Brenda Green, City Clerk
__________________________
Kimberly Hall Barlow, City Attorney

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No. 202 3-___ and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 5th day of December, 2023, by the following roll call vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 5th day of December, 2023.

_______________________________
Brenda Green, City Clerk
163

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1461 Meeting Date: 12/5/2023
TITLE:

MEASURE M2 EXPENDITURE REPORT
DEPARTMENT: PUBLIC WORKS DEPARTMENT /ADMINISTRATION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: CHRISTINE TSAO, SENIOR MANAGEMENT ANALYST (714) 754 -5024
RECOMMENDATION:

Staff recommends the City Council adopt the proposed Resolution No. 2023-xx, (Attachment 1) approving the Measure M2 Expenditure Report and authorizing staff to submit the report to the Orange County Transportation Authority (OCTA.)
BACKGROUND:

The approved guidelines for Renewed Measure “M” (M2) eligibility require that local agencies prepare and adopt an annual expenditure report on Measure M2 funds. The expenditure report is a detailed financial report, which tracks financial activity related to Measure M2 and other improvement funds. The report should account for the receipt, interest earned, and the use of Measure M2 and other funds as outlined in the Ordinance approved by the OCTA Board and the Orange County voters. OCTA requires the annual report to be provided within six (6) months from the end of the jurisdiction’s fiscal year.

ANALYSIS:

In order to qualify for Measure M2 funding, all agencies have to meet certain eligibility criteria established by the Ordinance approving the “M2”Program. Preparation of the expenditure report is one such requirement that each jurisdiction has to meet on an annual basis.

The guidelines require each city to prepare and adopt an annual expenditure report to account for Measure M2 funds, developer/traffic impact fees, and funds expended by the City to satisfy Maintenance of Effort requirements. The following are the requirements of the expenditure report:
· Submit report within six (6) months of the jurisdiction’s end of fiscal year; · Include all Measure M2 revenue, fund balances, and interest earned; · Identify expenditures by activity type (capital, operations, administration, etc.) and the funding

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File #: 23-1461 Meeting Date: 12/5/2023
· Identify expenditures by activity type (capital, operations, administration, etc.) and the funding source for each program/project; and
· Submit the expenditure report signed by the Finance Director accompanied by a resolution from the City Council.

The City of Costa Mesa’sreport for Fiscal Year 2022-23 is due by December 31, 2023. Staff prepared the attached expenditure report (Attachment 2) in accordance with OCTA guidelines. The report was reviewed in draft form by OCTA staff, and the information provided was determined to be acceptable.

Staff recommends the City Council’sapproval of the proposed resolution, approving the expenditure report, and authorizing staff to submit the report to OCTA.

ALTERNATIVES:

The City Council may choose not to approve the proposed resolution. This alternative would make the City ineligible to receive Measure M2 funds from the Orange County Transportation Authority.

FISCAL REVIEW:

The expenditure report took into account the final review of revenues and expenses for Fiscal Year 2022-23. The information contained in the M2 Expenditure Report was also reviewed by OCTA staff and determined to be acceptable.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this agenda report and resolution and approves them both as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council Goal:
· Achieve Long-Term Fiscal Sustainability
CONCLUSION:

The voter-approved Measure M2 requires local agencies to meet certain eligibility requirements for receipt of Measure M2 funds, including approval of the M2 Expenditure Report. Staff recommends that the City Council adopt the proposed resolution approving the M2 Expenditure Report for Fiscal Year 2022-23, for submittal to OCTA.

165
Attachment 1
Resolution No. 2023-XX Page 1 of 2

RESOLUTION NO. 2023-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING THE MEASURE M2 EXPENDITURE REPORT FOR THE CITY OF COSTA MESA FOR THE FISCAL YEAR ENDING JUNE 30, 2023

THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS, DETERMINES, AND DECLARES AS FOLLOWS:

WHEREAS, local jurisdictions are required to meet eligibility requirements and submit eligibility verification packages to the Orange County Transportation Authority (OCTA) in order to remain eligible to receive M2 funds; and WHEREAS, local jurisdictions are required to adopt an annual M2 Expenditure Report as part of one of the eligibility requirements; and WHEREAS, local jurisdictions are required to account for Net Revenues, developer/traffic impact fees, and funds expended by the local jurisdiction i n the M2 Expenditure Report that satisfy the Maintenance of Effort requirements; and WHEREAS, the M2 Expenditure Report must include all Net Revenue fund balances, interest earned and expenditures identified by type and program or project; and WHEREAS, the M2 Expenditure Report must be adopted and submitted to the OCTA each year within six (6) months of the end of the local jurisdiction’s fiscal year to be eligible to receive Net Revenues as part of M2.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COSTA MESA AS FOLLOWS:

Section 1. The City Council of the City of Costa Mesa does hereby in form the OCTA that:
(a) The M2 Expenditure Report is in conformance with the template provided in the Measure M 2 Eligibility Guidelines and accounts for Net Revenues including interest earned, expenditures during the fiscal year, and balances at the end of the fiscal year.
(b) The M2 Expenditure Report is hereby adopted by the City of Costa Mesa. 166
Resolution No. 2023-xx Page 2 of 2
(c) The Costa Mesa Finance Director is hereby authorized to sign and submit the Measure M2 Expenditure Report to OCTA for the fiscal year ending June 30, 2023.

Section 2 . The City Clerk shall certify to the passage and adoption of this Resolution and shall enter it into the book of original resolutions.

PASSED AND ADOPTED this 5th day of December, 2023.

____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

____________________________ ____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 167
City of Costa Mesa
M2 Expenditure Report
Fiscal Year Ended June 30, 2023
Beginning and Ending Balances
Schedule 1
Line
No. Amount Interest
A-M Freeway Projects 1 (36,889.00)$ -$
O Regional Capacity Program (RCP) 2 271,695.00$ -$ P Regional Traffic Signal Synchronization Program (RTSSP) 3 66,896.00$ -$ Q Local Fair Share 4 4,274,821.19$ -$
R High Frequency Metrolink Service 5 -$ -$
S Transit Extensions to Metrolink 6 -$ -$
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems 7 -$ -$ U Senior Mobility Program or Senior Non-Emergency Medical Program 8 104,783.26$ -$
V Community Based Transit/Circulators 9 (11,401.00)$ -$ W Safe Transit Stops 10 (48,199.00)$ -$ X Environmental Cleanup Program (Water Quality) 11 (102,224.00)$ -$ Other* 12 87,099.32$ -$
13 4,606,581.77$ -$
Monies Made Available During Fiscal Year 14 4,242,742.86$ 55,074$ 15 8,849,324.63$ 55,074$
Expenditures During Fiscal Year 16 2,553,294.52$ 53,052$ A-M Freeway Projects 17 (36,889.00)$ -$ O Regional Capacity Program (RCP) 18 188,416.90$ -$ P Regional Traffic Signal Synchronization Program (RTSSP) 19 (292,547.14)$ -$ Q Local Fair Share 20 6,457,271.26$ -$
R High Frequency Metrolink Service 21 -$ -$
S Transit Extensions to Metrolink 22 -$ -$
T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems 23 -$ -$ U Senior Mobility Program or Senior Non-Emergency Medical Program 24 81,395.40$ 2,022$
V Community Based Transit/Circulators 25 (11,401.00)$ -$ W Safe Transit Stops 26 (73,922.09)$ -$ X Environmental Cleanup Program (Water Quality) 27 (103,393.54)$ -$ Other* 28 87,099.32$ -$
* Please provide a specific description
Balances at End of Fiscal Year
Balances at Beginning of Fiscal Year
Balances at Beginning of Fiscal Year
Description
Total Monies Available (Sum Lines 13 & 14)
ATTACHMENT 2
168
City of Costa Mesa M2 Expenditure Report
Fiscal Year Ended June 30, 2023
Sources and Uses
Schedule 2
Line
No. Amount Interest
A-M Freeway Projects 1 -$ -$
O Regional Capacity Program (RCP) 2 -$ -$ P Regional Traffic Signal Synchronization Program (RTSSP) 3 662,868$ -$ Q Local Fair Share 4 3,453,031$ 53,052$
R High Frequency Metrolink Service 5 -$ -$ S Transit Extensions to Metrolink 6 -$ -$ T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems 7 -$ -$ U Senior Mobility Program or Senior Non-Emergency Medical Program 8 126,844$ 2,022$ V Community Based Transit/Circulators 9 -$ -$ W Safe Transit Stops 10 -$ -$
X Environmental Cleanup Program (Water Quality) 11 -$ -$ Other* 12 -$ -$
13 4,242,743$ 55,074$
A-M Freeway Projects 14 -$ -$
O Regional Capacity Program (RCP) 15 83,278$ -$ P Regional Traffic Signal Synchronization Program (RTSSP) 16 1,022,311$ -$ Q Local Fair Share 17 1,270,581$ 53,052$
R High Frequency Metrolink Service 18 -$ -$ S Transit Extensions to Metrolink 19 -$ -$ T Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems
20 -$ -$
U Senior Mobility Program or Senior Non-Emergency Medical Program 21 150,232$ -$ V Community Based Transit/Circulators 22 -$ -$ W Safe Transit Stops 23 25,723$ -$
X Environmental Cleanup Program (Water Quality) 24 1,170$ -$ Other* 25 -$ -$
26 2,553,295$ 53,052$
27 1,689,448$ 2,022$
* Please provide a specific description
TOTAL BALANCE (Subtract line 26 from 13)
TOTAL EXPENDITURES (Sum lines 14 to 25)
Description
Revenues:

TOTAL REVENUES (Sum lines 1 to 12)
Expenditures:
169
City of Costa Mesa
M2 Expenditure Report
Fiscal Year Ended June 30, 2023
Streets and Roads Detailed Use of Funds
Schedule 3
Line
No. MOE Developer /
Impact Fees+ O O
Interest P P
Interest Q Q
Interest X X
Interest
Other
M22
Other
M2
Interest
Other* TOTAL
1 1,459,892$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,459,892$ New Street Construction 2 -$ 52,280$ 83,278$ -$ -$ -$ 47,626$ -$ -$ -$ -$ -$ -$ 183,184$ Street Reconstruction 3 603,373$ 25,056$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 628,430$ Signals, Safety Devices, & Street Lights 4 93,856$ 138,620$ -$ -$ -$ -$ 200,572$ -$ -$ -$ -$ -$ -$ 433,048$ Pedestrian Ways & Bikepaths 5 629,200$ 241,595$ -$ -$ -$ -$ 134,786$ -$ -$ -$ -$ -$ -$ 1,005,582$ Storm Drains 6 193,159$ -$ -$ -$ -$ -$ -$ -$ 1,170$ -$ -$ -$ -$ 194,328$ Storm Damage 7 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 8 1,519,588$ 457,551.45$ 83,278.10$ -$ -$ -$ 382,984$ -$ 1,170$ -$ -$ -$ -$ 2,444,572$ Right of Way Acquisition 9 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 10 1,519,588$ 457,551.45$ 83,278.10$ -$ -$ -$ 382,984$ -$ 1,169.54$ -$ -$ -$ -$ 2,444,572$ Patching 11 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Overlay & Sealing 12 679,382$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 679,382$ Street Lights & Traffic Signals 13 2,347,369$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,347,369$ Storm Damage 14 -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Other Street Purpose Maintenance 15 4,764,993$ -$ -$ -$ -$ -$ 887,597$ 53,052.15$ -$ -$ -$ -$ -$ 5,705,642$ 16 7,791,744$ -$ -$ -$ -$ -$ 887,597$ 53,052.15$ -$ -$ -$ -$ -$ 8,732,393$ 17 -$ -$ -$ -$ -$ -$ -$ -$ -$ 25,723$ -$ -$ 25,723$ 18 10,771,224$ 457,551$ 83,278$ -$ -$ -$ 1,270,581$ 53,052$ 1,170$ -$ 25,723$ -$ -$ 12,662,579$ 19 1 Includes direct charges for staff time Legend
2 Other M2 includes A-M, R,S,T,U,V, and W Project
+ Transportation related only A-M
* Please provide a specific description O
P
Q
R
S
T
U
V
W
X
Finance Director Confirmation
Any California State Constitution Article XIX streets and road eligible expenditure may be “counted” in local jurisdictions’ calculation of MOE if the activity is supported (funded) by a local jurisdictions’ discretionary funds (e.g. general fund).

The California State Controller also provides useful information on Article XIX and the Streets and Highways Code eligible expenditures in its “Guidelines Relating to Gas Tax Expenditures for Cities and Counties”. I have reviewed and am aware of these guidelines and their applicability in calculating and reporting on Maintenance of Effort expenditures.

Finance Director initial: _______________
Description
Transit Extensions to Metrolink
Safe Transit Stops
High Frequency Metrolink Service
Environmental Cleanup Program (Water Quality)
Senior Mobility Program or Senior Non-Emergency Medical Program Community Based Transit/Circulators
Convert Metrolink Station(s) to Regional Gateways that connect Orange County with High-Speed Rail Systems
Freeway Projects
Regional Capacity Program (RCP)
Local Fair Share
Regional Traffic Signal Synchronization Program (RTSSP) Other
Total Maintenance1
GRAND TOTALS (Sum Lines 1, 10, 16, 17)
Type of Expenditure
Indirect and/or Overhead
Construction & Right-of-Way
Total Construction1
Total Construction & Right-of-Way
Maintenance
170
City of Costa Mesa
M2 Expenditure Report
Fiscal Year Ended June 30, 2023
Local Fair Share Project List
Schedule 4

PROJECT NAME AMOUNT EXPENDED
Street Maintenance Citywide - #400015 869,440.31$
Bicycle/ Pedestrian Infra Improvements- #450015 71,107.85$ Adams at Pinecreek Improvement (Intersection improve.) -#300174 47,626.22$ Adams Ave Bicycle Facility Project (Class II Bike Lanes) #450014 63,678.49$ Neighborhood Traffic Improvement (Signs, approved speed humps) #300163 85,018.92$ Parkway Maintenance Program- Citywide -#500010 71,208.85$ Citywide Traffic Signal Improvement #370058 64,174.51$
West 19th St. Wallace Ave Traffic Signal # 370059 51,378.10$ 1,323,633.25$
171
City of Costa Mesa
M2 Expenditure Report
Fiscal Year Ended June 30, 2023
Signature Page
Date
11 Jurisdictions are encouraged to submit MOE eligible expenditures higher than their MOE benchmark, so that should certain expenses be ruled ineligible during an MOE audit, the local jurisdiction still has sufficient MOE expenditures to demonstrate continued achievement of the MOE benchmark.

I hereby certify that:
☐ All the information attached herein and included in schedules 1 through 4 is true and accurate to the best of my knowledge;
☐ The interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated;
☐ The City/County of ____________________ is aware of the State Controller’s “Guidelines Relating to Gas Tax Expenditures for Cities and Counties”, which is a guide for determining MOE Expenditures for M2 Eligibility purposes;
☐ The City/County’s Expenditure Report is in compliance with direction provided in the State Controller’s “Guidelines Relating to Gas Tax Expenditures for Cities and Counties;” and ☐ The City/County of ___________________ has expended in this fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to or exceeding the FY 2022-23 MOE benchmark dollar amount11.

Director of Finance (Print Name)
Signature
172

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1462 Meeting Date: 12/5/2023
TITLE:

AWARD OF THE CONNECTOR PIPE SCREEN INSTALLATION PROJECT, PHASE IV, CITY PROJECT NO. 23-08 AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY

EXEMPT FROM CEQA
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. Find the project categorically exempt from CEQA and adopt plans, specifications, and working details for the Connector Pipe Screen Installation Project, Phase IV, City Project No. 23-08.

2. Authorize the City Manager and City Clerk to execute a Public Works Agreement (PWA) in the amount of $283,500, and future contract amendments within City Council authorized limits to United Storm Water, Inc., 1400 E. Valley Boulevard, Industry, California 91746.

3. Authorize a ten percent (10%) contingency in the amount of $28,350 for unforeseen construction and miscellaneous costs related to the project.

4. Authorize a budget appropriation from available fund balances from drainage fund in the amount of $55,967.

ENVIRONMENTAL DETERMINATION:

The proposed action is exempt from the California Environmental Quality Act (CEQA). The action involves an organizational or administrative activity of government that will not result in direct or indirect physical change in the environment. In addition, the proposed action is exempt under Section 15301 relating to the operation, repair, maintenance, permitting, and/or minor alteration of existing public facilities.

BACKGROUND:

On July 19, 2022, the City of Costa Mesa adopted a resolution for the Application of Grant Funds for the Environmental Cleanup Program (ECP), Tier 1 grant program for the 2022 Connector Pipe Screen Installation Project, Phase IV.

The Tier 1 Environmental Cleanup Program grant is administered by the Orange County

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File #: 23-1462 Meeting Date: 12/5/2023
The Tier 1 Environmental Cleanup Program grant is administered by the Orange County Transportation Authority (OCTA) and allocates grant funding specifically towards street-scale catch basin and drainage system retrofit projects that target transportation-generated pollutants from stormwater discharges and in particular trash and debris generated along roadways.

In 2022, as part of OCTA’sprogramming recommendations, the City of Costa Mesa was awarded $160,000 in funding for the Connector Pipe Screen Installation Project, Phase IV.

ANALYSIS:

The City Clerk received and opened 2 bids for this project on November 13, 2023. United Storm Water Inc., the apparent low-bidder, submitted a bid proposal in the amount of $283,500. The bid abstract reflecting the bid results is included as Attachment 1.

The scope of work for the project will consist of providing labor and materials to install 300 full- capture certified connector pipe screens at City-owned catch basins at various locations throughout the City of Costa Mesa. The project is part of the City’svarious water quality compliance efforts to comply with state requirements and implement the City’sNational Pollutant Discharge Elimination System (NPDES) requirements.

Upon City Council award of the Public Works Agreement (PWA), United Storm Water will furnish the necessary bonds and insurance, which will be approved as to form by Risk Management. The PWA will be drafted by the City Attorney’soffice after City Council award and executed afterward. After the award and subsequent execution of the agreement, a “Notice to Proceed” will be issued.

The license and references of United Storm Water, Inc. were checked and found to be in good standing. United Storm Water Inc. has successfully completed other City projects, including the 2017, 2018, and 2019 Connector Pipe Screen Installation Projects.

ALTERNATIVES:

The alternative to this Council action would be to reject all bids and rebid the project. Staff has determined that re-advertising and re-bidding the project will not result in lower bids and will delay the project. In addition, the City may lose OCTA grant funding if the Council acts not to award this project.

FISCAL REVIEW:

The FY 2023/24 amended budget includes $95,885 in the Drainage Fund and $160,000 in Measure M2 Funds for a total budget of $255,883 for the Catch Basin Inserts project - Various Locations. An additional appropriation of $55,967 from available fund balances from the drainage fund is required to fully fund the project and contingency.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this agenda report and approves it as to form.

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File #: 23-1462 Meeting Date: 12/5/2023
CITY COUNCIL GOALS AND PRIORITIES:

This project works toward achieving the following City Council Goal:
· Strengthen the Public’s Safety and Improve the Quality of Life CONCLUSION:

Staff recommends the City Council:

1. Find the project categorically exempt from CEQA and adopt plans, specifications, and working details for the Connector Pipe Screen Installation Project, Phase IV, City Project No. 23-08.

2. Authorize the City Manager and City Clerk to execute a Public Works Agreement (PWA) in the amount of $283,500, and future amendments within City Council authorized limits to United Storm Water, Inc., 1400 E. Valley Boulevard, Industry, California 91746.

3. Authorize a ten percent (10%) contingency in the amount of $28,350 for unforeseen construction and miscellaneous costs related to the project.

4. Authorize a budget appropriation from available fund balances from drainage fund in the amount of $55,967.

175
City
Industry
Escondido
AVERAGE BID:

ENGINEER'S ESTIMATE:

LOWEST RESPONSIVE BID: $283,500.00
$200,000.00
$493,350.00
Total Bid
$283,500.00
$703,200.00
Bidder
ATTACHMENT 1

CITY OF COSTA MESA

PUBLIC WORKS DEPARTMENT

CONNECTOR PIPE SCREEN INSTALLATION PROJECT, PHASE IV
CITY PROJECT NO. 23-08
BID OPENING DATE: NOVEMBER 13, 2023
Downstream Services, Inc.

United Storm Water, Inc.

PAGE 1 OF 1
176

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1391 Meeting Date: 12/5/2023
TITLE:

OPEN SPACE EASEMENT DEED AND AGREEMENT (“RAIL TRAIL”) WITH THE PRESS

OWNER, LLC
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. Approve the Open Space Easement Deed and Easement Agreement (“Rail Trail”) between the City of Costa Mesa (City) and The Press Owner, LLC (Press LLC).

2. Authorize the City Manager or designee to execute the Open Space Easement Deed and Easement Agreement and any future authorized amendments to this agreement.

BACKGROUND:

Following the various land use approvals by the City, Anduril Industries moved to its newest headquarters in Costa Mesa, occupying the former site of The Press, which once housed the offices of the Los Angeles Times. The new campus includes a new 200,000 square-foot research and development space, a parking structure, and a substantial remodel of the existing buildings onsite at 1375 Sunflower Avenue, 1376 Sunflower Avenue, and 3370 Harbor Boulevard. The address of the site has been revised to 1400 Anduril and will support nearly 2,500 employees.

The Press Owner, LLC (Press LLC) and The Hive Creative Office, Inc. (Hive), are the current underlying property owners, a portion of which will become the Open Space Easement (“RailTrail”).

Pursuant to conditions of approval imposed as part of the development process, the two owners have agreed to dedicate an easement to the City over a 75-foot wide linear portion of their properties to be restricted as open space and to create a “RailTrail”to allow the local community to enjoy exercise facilities and provide a Class I bicycle and multi-purpose trail connection between Sunflower Avenue and South Coast Drive.

Both Press LLC and the Hive separately own portions of the 75-foot wide linear open space. Both owners will be entering into a Trail Easement Agreement in which the Hive grants to Press LLC, an irrevocable easement with the rights of ingress, egress, and access onto the Hive’sportion of the open space for the purposes of dedicating the open space Rail Trail to the City. Under this agreement, Press LLC will be responsible for the maintenance, repair, and use of the open space

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File #: 23-1391 Meeting Date: 12/5/2023
agreement, Press LLC will be responsible for the maintenance, repair, and use of the open space Rail Trail (Attachment 1).

ANALYSIS:

On August 14, 2017, the Planning Commission approved Preliminary Master Plan and Zoning Application PA-17-03 that allowed for the development of the new Anduril headquarters site at 1375 Sunflower Avenue, 1376 Sunflower Avenue, and 3370 Harbor Boulevard. In August 2021, an amendment to Zoning Application PA-17-03 was approved by the Zoning Administrator, and minor modifications were addressed regarding the open space Rail Trail per the second amendment (PA- 17-03 A2).

The proposed project called for the development of 655,000 square feet of office space divided into three (3) phases. One of the conditions of the Master Plan is to improve the 75-foot wide linear open space along the easterly property boundary that once served as a rail spur for the site that was previously occupied by the Los Angeles Times.

This open space Rail Trail includes a pedestrian walkway, Class I bike trail, and open space amenities that are open to the public from Sunflower Avenue to South Coast Drive. This bicycle trail is consistent with the City’s Active Transportation Plan.

However, since this open space Rail Trail is along privately owned property, an easement is required for the strip of open space located at the easterly property to be accessible to the public during daytime hours. The attached Open Space Easement Deed and Easement Agreement will enable the City to secure the necessary rights to allow for public use of the Rail Trail. Following approval and execution of the deed and agreement, it will be recorded at the Orange County Clerk- Recorder’s office.

Staff is recommending that the City Council approve the Open Space Easement Deed and Easement Agreement to allow for public use of the Rail Trail as contemplated by Attachment 2.

ALTERNATIVES:

The City may elect not to enter into the Open Space Easement Deed and Agreement with Press LLC. Staff does not recommend this alternative, as this would deprive the community of a landscaped Rail Trail and also reduce bicycle mobility within the vicinity. This would also be inconsistent with the recommendation of the Active Transportation Plan.

FISCAL REVIEW:

There is no fiscal impact to the City with the Open Space Easement Deed and Easement Agreement.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this staff report and the Open Space Easement Deed and Easement Agreement and approves them as to form.

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File #: 23-1391 Meeting Date: 12/5/2023
CITY COUNCIL GOALS AND PRIORITIES:

This agreement works toward achieving the City Council goal to “Strengthenthe Public’sSafety and Improve the Quality of Life.”
CONCLUSION:

Staff recommends the City Council:

1. Approve the Open Space Easement Deed and Easement Agreement (“Rail Trail”) between the City of Costa Mesa (City) and The Press Owner, LLC (Press LLC).

2. Authorize the City Manager or designee to execute the Open Space Easement Deed and Easement Agreement and any future authorized amendments to this agreement.

179
SMRH:4877-6681-7931.9 -1- TRAIL EASEMENT AGREEMENT
111723

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

THE PRESS OWNER, LLC
c/o Invesco Advisers, Inc.
2001 Ross Avenue, Suite 3400
Dallas, Texas 75201
Attention: The Press Asset Manager
______________________________________________________________________________ (SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE)

TRAIL EASEMENT AGREEMENT
THIS TRAIL EASEMENT AGREEMENT (“Trail Easement Agreement”) is made and entered into as of November __, 2023, by and between THE HIVE CREATIVE OFFICE, INC., a Delaware corporation (“Grantor’’), and THE PRESS OWNER, LLC , a Delaware limited liability company, its successors and assigns (“Grantee”).

RECITALS
A. Grantor owns that certain real property located in the City of Costa Mesa (the “City”), County of Orange (“County”), California, more particularly described on Attachment A attached hereto and incorporated herein (the “Grantor Property”).

B. Grantee owns that certain real property also located in the City and County more particularly described on Attachment B attached hereto and incorporated herein (the “ Grantee Property”). The Grantee Property abuts the western property boundary line of the Grantor Property.

C. On August 14, 2017, the City Planning Commission adopted Master Plan (PA-17- 03) (the “Master Plan”) that provides for the development of a three-parcel, 23.4-acre creative office and commercial campus (the “Project”) on the Grantee Property. The Master Plan contemplates phased development, and is intended to revitalize the former LA Times building and associated surface parking lot, while maintaining an economically vibrant balance of land uses and improving the quality of Costa Mesa’s natural environment and resources.

D. The Master Plan C onditions of Approval (the “ Conditions”) provide for the installation and maintenance of a “lighted multi-purpose trail” that will connect South Coast Drive and Sunflower Avenue along the east side of the Project (the “Multi-Purpose Trail”) in currently unused railroad right -of way easements. In compliance with the Conditions, Grantee plans to construct and maintain reversible improvements to implement the Multi-Purpose Trail.

E. The proposed Multi -Purpose Trail is located on both the Grantor Property and Grantee Property, and Grantee plans to improve and maintain the Multi-Purpose Trail on both the Grantee Property and Grantor Property pursuant to that certain Easement Deed and Easement Agreement for the Open Space Easement b etween the Grantee and the City and enterered concurrently herewith and to be recorded, in the County’s official records (“Open Space Easement Agreement”). The proposed Multi -Purpose Trail will thereby facilitate access and connectivity ATTACHMENT 1
180
SMRH:4877-6681-7931.9 -2- TRAIL EASEMENT AGREEMENT
111723

between the Grantor Property and the Grantee Property, beautify a long un-used and former railroad spur, and promote public access and recreational opportunities.

F. The portion of the Multi -Purpose Trail located on the Grantor Property will b e approximately fifteen (15) feet wide and extend from approximately the property line from Sunflower Ave to South Coast Drive, (the “ Trail Easement Area ”), all as more particularly described on Exhibit A, and depicted on Exhibit B, each as attached hereto and incorporated herein.

G. In furtherance of these purposes, Grantor desires to grant to Grantee, and Grantee desires to acquire from Grantor, the rights of ingress, egress, and access as more particularly set forth in this Trail Easement Agreement.

AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

1. Grant of Easement.
(a) Grantor hereby grants to Grantee a permanent easement for the construction, maintenance, repair and use of the Multi-Purpose Trail in, under, on, over, along and across the Trail Easement Area for such uses as set forth in the Open Space Easement Agreement. (b) Grantor acknowledges that Grantee shall have the right and the obligation pursuant to the Open Space Easement Agreement and the Conditions, to provide access to the Trail Easement Area to the public generally, as part of its use, maintenance and operation of the Multi- Purpose Trail, and the access allowed by Grantee may include lawful pedestrian, bicycle and other trail purposes, subject to such rules and regulations as Grantee may from time to time impose on such use in its sole and absolute discretion, provided, however, that Grantee’s exercise of such rights may be limited by the Open Space Easement Agreement.
(c) Grantee shall have the right, at any time and from time to time, to construct, operate, use, maintain, inspect, repair, renew, replace, reconstruct, enlarge, alter, add to, improve, relocate, grade and regrade and remove, the Multi-Purpose Trail, associated landscaping, and other ancillary improvements associated with the Multi-Purpose Trail within the Trail Easement Area. (d) Grantee shall have the right to temporarily restrict the Grantor’s and t he general public’s access to the Trail Easement Area as necessary or convenient from time to time in order to implement the Grantee’s rights under this easement, provided, however, that Grantee’s exercise of such rights may be limited by the Open Space Easement Agreement. Without limiting the generality of the foregoing, Grantee shall have the right to install temporary access barriers to effectuate such restricted access.
(e) Grantee shall have the right, but not the obligation, to keep the Trail Easement Area free from obstructions of any type or kind, including without limitation, any vehicles, mechanical and electrical equipment, fences, gates, trees or shrubs, provided, however, that Grantee’s exercise of such rights and obligations may be limited or expaneded by the Open Space Easement Agreement. Grantee may erect fences, gates, architectural features or structures of any ATTACHMENT 1
181
SMRH:4877-6681-7931.9 -3- TRAIL EASEMENT AGREEMENT
111723

kind in compliance with the Conditions and the Open Space Easement Agreement to implement the Multi-Purpose Trail.
(f) Grantor shall not, without prior written consent of the Grantee, construct, install or maintain any obstructions of any type, including, without limitation, any vehicles, mechanical and electrical equipment, fences, gates, trees or shrubs, or structures of any kind in, under, on, over, along or across the Trail Easement Area. (g) Grantor hereby authorizes Grantee to enter into that Open Space Easement Agreement and to perform all obligations of Grantee thereunder.

2. Character of Easement. The easement granted in this Trail Easement Agreement is appurtenant to the Grantee Property.

3. Maintenance. If the Multi-Purpose Trail is constructed, Grantee shall reasonably maintain the Trail Easement Area and any improved portions thereon in a good and safe condition and repair at no cost to Grantor.

4. Indemnification. Grantee shall indemnify, defend, and hold harmless Grantor for, from, and against, any and all claims, losses and/or liabilities (including reasonable attorneys’ fees and court costs, but excluding consequential, punitive and special losses and damages) arising from or relating to Grantee’s rights under this Trail Easement Agreement, including without limitation, the construction, maintenance, improvement and use of the Multi-Purpose Trail and the performance of all obligations of Grantee under the Open Space Easement Agreement and any and all liabilities arising out of the Open Space Easement Agreement or in connection therewith.

5. Other Rights. The rights granted in this Trail Easement Agreement shall be utilized in a manner that is compatible with and shall be subject to all covenants, restrictions, conditions, easements, leases and other encumbrances of record, to the extent such existing rights have not been abandoned, or otherwise terminated.

6. Enforceability. This Trail Easement Agreement shall be binding upon the parties and their respective heirs, successors and assignees, representatives, lessees, and all other persons acquiring the Grantee Property or the Grantor Property, or any portion thereof, or any interest therein, whether by operation of law or in any manner whatsoever. All of the provisions of this Trail Easement Agreement shall constitute covenants running with the land pursuant to applicable laws, including, but not limited to, Section 1468 of the Civil Code of the State of California, and the burdens and benefits shall be binding upon and inure to the benefit of each of the parties and their respective heirs, successors (by merger, consolidation, or otherwise), assigns, devisees, administrators, representatives, and lessees.

7. Further Assurances. The parties hereto shall execute all further instruments and perform such further acts which are or may become reasonably necessary to effectuate and to carry out the purposes contemplated by this Trail Easement Agreement.

8. No Agency. Nothing in this Trail Easement Agreement creates the relationship of principal and agent or of limited or general partners or of joint venturers or of any other association between the parties.

ATTACHMENT 1
182
SMRH:4877-6681-7931.9 -4- TRAIL EASEMENT AGREEMENT
111723

9. Severability. Any term or provision of this Trail Easement Agreement that is invalid or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Trail Easement Agreement, or affecting the validity or enforceability of any of the terms or provisions of this Trail Easement Agreement.

10. Counterparts. This Trail Easement Agreement may be executed in one or more counterparts, with the same force and effect as though all the parties executing such counterparts had executed but one instrument. Signature and/or acknowledgment pages may be detached from such counterparts and attached to this Trail Easement Agreement to physically form one legally effective document for recording purposes.

11. Notice Pursuant to California Civil Code Section 813. The right of the public or any person to make any use whatsoever of the Trail Easement Area or any portion thereof (other than any use expressly allowed by a written or recorded map, agreement, deed or dedication) is by permission, and subject to control of the Grantor: Section 813, Civil Code. By this Agreement, Grantor grants express permission for use of the Trail Easement Area by Grantee, and for Grantee to permit the City and the general public to use the Trail Easement Area on the terms and conditions set forth herein and in the Open Space Easement Agreement. No use of the Trail Easement Area or any other portion of Grantor Property or other lands owned by Grantor, by Grantee and by members of the general public, and no construction, maintenance, repair or use of improvements thereof by Grantee or any third party, shall ripen to confer on Grantee, City, any member of the general public, or any other party a vested, prescriptive or other right, title or interest in or to the Trail Easement Area or any other portion of Grantor Property or other lands owned by Grantor. [SIGNATURES FOLLOW ON SUBSEQUENT PAGES]

ATTACHMENT 1
183
ATTACHMENT 1
184
ATTACHMENT 1
185
SMRH:4877-6681-7931.9
Attachment A
-1- TRAIL EASEMENT AGREEMENT
111723 Grantor Property

ATTACHMENT A
Grantor Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA MESA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL 3 OF PARCEL MAP 94-120, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN THE BOOK 284, PAGES 7 TO 10 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPTING THEREFROM AND ALL UNDERGROUND WATER, WATER RIGHTS, OIL, OIL RIGHTS,

MINERALS, MINERAL RIGHTS, NATURAL GAS, NATURAL GAS RIGHTS AND OTHER

HYDROCARBONS BY WHATSOEVER NAME KNOWN AND ALL RIGHTS THEREIN, GEOTHERMAL

STEAM, AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR

UNDER THE PROPERTY, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, PUMPING, MINING,

EXTRACTING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE

SAME FROM THE PROPERTY OR ANY OTHER PROPERTY, INCLUDING THE RIGHT TO WHIPSTOCK

OR DIRECTIONALLY DRILL, PUMP AND MINE FROM PROPERTY OTHER THAN THE PROPERTY,

WATER, OIL OR GAS WELLS, TUNNELS A ND SHAFTS INTO, THROUGH OR ACROSS THE

SUBSURFACE OF THE PROPERTY, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY

DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR

LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS, TUNNELS OR SHAFTS; PROVIDED, HOWEVER, THAT IN NO EVENT

SHALL GRANTOR OR ITS SUCCESSORS OR ASSIGNS HAVE THE RIGHT TO DRILL, PUMP, MINE OR EXCAVATE THROUGH THE SURFACE OR THE UPPER 200 FEET OF THE SUBSURFACE OF THE PROPERTY. PROVIDED, HOWEVER, THAT GRANTOR SHALL HAVE NO RIGHT TO ENTER UPON THE

SURFACE OF THE PROPERTY, TO DEPRIVE THE PROPERTY OF STRUCTURAL SUPPORT OR

OTHERWISE INTERFERE IN ANY WAY WITH GRANTEE'S DEVELOPMENT, CONSTRUCTION OR

OPERATION OF THE PROPERTY FOR GRANTEE'S INTENDED USE THEREOF, AS RESERVED IN THE GRANT DEED RECORDED FEBRUARY 5, 2004 AS INSTRUMENT NO. 2004000089551 OF OFFICIAL RECORDS.

APN: 140-042-12 and 140-042-13

ATTACHMENT 1
186
SMRH:4877-6681-7931.9
Attachment B
-1- TRAIL EASEMENT AGREEMENT
111723 Grantee Property

ATTACHMENT B
Grantee Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COSTA MESA IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL A:

PARCEL 1 OF LOT LINE ADJUSTMENT NO. LL 18-04, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, RECORDED FEBRUARY 13, 2020 AS INSTRUMENT NO. 202000062319 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA:

EXCEPTING THEREFROM THE NORTH 232.52 FEET OF THE SOUTH 338.56 FEET OF THE WEST 152.62 FEET OF SAID PARCEL 1.

ALSO EXCEPTING, FROM A PORTION OF SAID LAND, ALL OIL, GAS/HYDROCARBON

SUBSTANCES AND MINERALS BY WHATEVER NAME KNOWN IN, ON OR UNDER THE ABOVE DESCRIBED LAND BELOW A DEPTH OF 500 FEET MEASURED VERTICALLY FROM THE

SURFACE OF THE GROUND, BUT WITHOUT THE RIGHT OF ENTRY UPON ANY PORTION OF THE SURFACE OF THE GROUND ABOVE A DEPTH OF 500 FEET FOR THE PURPOSE OF

EXPLORING FOR, BORING, MINING, DRILLING, REMOVING, EXTRACTING OR MARKETING

SAID SUBSTANCES, TOGETHER WITH THE EXCLUSIVE RIGHT TO EXECUTE ANY AND ALL

LEASES FOR THE PURPOSE OF EXTRACTING OR RECOVERING SAID SUBSTANCES, AS RESERVED IN DEED RECORDED JANUARY 18, 1966.

ALSO EXCEPTING, FROM A PORTION OF SAID LAND, ALL MINERAL RIGHTS, BUT WITHOUT RIGHT OF ENTRY ON THE SURFACE OR WITHIN 500 FEET THEREOF, AS RESERVED BY C.J.

SEGERSTROM & SONS, A GENERAL PARTNERSHIP, IN THE DEED RECORDED JANUARY 24, 1979 IN BOOK 13010, PAGE 1413 OFFICIAL RECORDS.

ALSO SHOWN AND DESCRIBED AS EXHIBIT “A” IN LOT L INE ADJUSTMENT NO. LL 21 -02, RECORDED NOVEMBER 19, 2021 AS INSTRUMENT NO. 2021-710813, OFFICIAL RECORDS.

PARCEL B:

PARCEL 2 OF LOT LINE ADJUSTMENT NO. LL 18 -04, RECORDED FEBRUARY 13, 2020 AS INSTRUMENT NO. 202000062319 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA.

EXCEPTING ALL MINERAL RIGHTS, BUT WITHOUT RIGHT OF ENTRY ON THE SURFACE OR WITHIN 500 FEET THEREOF, AS RESERVED BY C. J. SEGERSTROM & SONS, A GENERAL PARTNERSHIP, IN THE DEED RECORDED JANUARY 24, 1979 IN BOOK 13010, PAGE 1413 OFFICIAL RECORDS.

APN: 140-042-16; 140-042-17; 140-042-19; and 140-042-20 ATTACHMENT 1
187
SMRH:4877-6681-7931.9

EXHIBIT A
-1- TRAIL EASEMENT AGREEMENT
111723 Easement Area

EXHIBIT A
Legal Description of Trail Easement Area

[SEE ATTACHED]

ATTACHMENT 1
188
2/21/23

OPEN SPACE EASEMENT
EXHIBIT "A"

LEGAL DESCRIPTION
APN: 140-042-12, -13

THAT CERTAIN PARCEL OF LAND SITUATED IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, BEING A PORTION OF PARCEL 3 OF PARCEL MAP NO. 94-120 RECORDED IN BOOK 284, PAGES 7 THROUGH 10 INCLUSIVE OF PARCEL MAPS IN SAID COUNTY AND IS DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF SAID PARCEL 3 ALSO BEING THE NORTH LINE OF SOUTH COAST DRIVE, HAVING A HALF WIDTH OF 42.00 FEET;
lHENCE ALONG SAID NORTH LINE OF SOUTH COAST DRIVE SOUTH 89.40'32" EAST 20.89 FEET; lHENCE LEAVING SAID NORTH LINE OF SOUTH COAST DRIVE AND ALONG THE EASTERLY LINE OF SAID PARCEL OF LAND NORTH 1·05'08" EAST 426.70 FEET;
lHENCE NORTH 89.08'56" WEST 10.51 FEET;
lHENCE NORTH 0•22' 48" EAST 800.54 FEET;
lHENCE NORTH 89.40'34" WEST 0.94 FEET TO A LINE PARALLEL WITH AND 15.00 FEET EAST OF THE WEST LINE OF SAID PARCEL 3;
lHENCE ALONG SAID PARALLEL LINE NORTH 0·21'56" WEST 145.71 FEET TO THE SOUTH LINE OF SUNFLOWER A VENUE, HAVING A HALF WIDTH OF 42.00;
lHENCE ALONG SAID SOUTH LINE OF SUNFLOWER AVENUE NORTH 89.40'34" WEST 15.00 FEET TO

THE INTERSECTION OF SAID SOUTH LINE OF SUNFLOWER AVENUE AND THE WEST LINE OF SAID PARCEL 3;
lHENCE ALONG SAID WEST LINE OF SAID PARCEL 3 SOUTH 0•21'56" EAST 1373.00 FEET TO THE POINT OF BEGINNING.

CONTAINING A TOTAL AREA OF 24,924 SQUARE FEET, MORE OR LESS.

ALSO SHOWN IN EXHIBIT "8" ATTACHED HEREWITH AND MADE A PART HEREOF.

THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY SUPERVISION, IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYOR'S ACT.

DATE
LICENSE EXPIRES: 12-31-
PAGE 1 OF 1
No. 8899
OWNER: THE PRESS OWNER, LLC.

ATTACHMENT 1
189
SMRH:4877-6681-7931.9

EXHIBIT B
-1- TRAIL EASEMENT AGREEMENT
111723 Depiction of Easement Area

EXHIBIT B
Depiction of Trail Easement Area

[See 3 pages attached]

ATTACHMENT 1
190
1 OF 3
LEGEND:

SITE

VICINITY MAP

NOT TO SCALE
2/21/23

OPEN SPACE EASEMENT
EXHIBIT "B" W MACARTHUR BLVD
~ Cl
APN: 140-042-12, -13, &-19
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NUE -----.---S~~ROWi_E_R ___ Affi - -
en SUNFLOWER A VE :s::
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INSTRUMENT NO,
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PAHCEL MAP NO, 94--120
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NOTTO SCALE
SOUTH COAST DRIVE ----+--- --t--+----
DATE:

No. 8899
--------
PLAT

CITY OF COSTA MESA

COUNTY OF ORANGE

STATE OF CALIFORNIA
P.O.B. POINT OF BEGINNING

PARCEL LINE

EASEMENT BOUNDARY

STREET CENTERLINE

RAIL TRAIL EASEMENT
AREA= 24,924 SF +/-
OWNER: THE PRESS OWNER, LLC.

TAIT & ASSOCIATES INC.

Engineering -Surveying • Environmental
701 PARKCENTER DRIVE, SANTA ANA, CALIFORNIA 92705
TEL. (714) 560-8200
ATTACHMENT 1
191
2 OF 3
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1 inch = ft. 40

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BE CONTROLLED BY THE EXISTING FENCE LINE.

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WESTERLY PORTION OF THE EASEMENT

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ATTACHMENT 1
193
1 EASEMENT DEED AND AGREEMENT

Recording Requested By

and

When Recorded Return To:

City of Costa Mesa

77 Fair Drive

Costa Mesa, CA 92626

Attn: City Clerk

(Space Above This Line For Recorder’s Use Only)

EASEMENT DEED AND

EASEMENT

AGREEMENT

FOR THE OPEN SPACE EASEMENT

EASEMENT DEED

FOR VALUABLE CONSIDERATION
, the
receipt

of which is hereby
acknowledged
,
THE

PRESS OWNER, LLC
,
a Delaware
limited liability company
, hereinafter referred to as
“
Grantor
”
, does
hereby grant, convey and dedicate to the

CITY OF COSTA MESA
, a Municipal Corporation, hereinafter
referred to as “
City
”,
a perpetual easement for open space and public recreation purposes and incidents thereto

upon, over and across those portions of

th
at certain

real property located in the City of Costa Mesa,
County of Orange, State of California and more particularly described as follows

(collectively, the “
Open
Space Easement
”)
:

SEE

EXHIBITS A, B, C AND D
, EACH

ATTACHED HERETO AND MADE A

PART HER

EOF BY THIS REFERENCE

(collectively, the “
Open Space Easement
Area
”)

EASEMENT AGREEMENT FOR THE OPEN SPACE EASEMENT
THIS

EASEMENT AGREEMENT FOR THE OPEN SPACE EASEMENT
for public
recreational purposes and
maintenance commitments

by Grantor as set forth herein

(
“Easement
Agreement
”) is made and entered into

by and
between the City and Grantor.

RECITALS

WHEREAS
,
Grantor is
the owner and developer of real property in the City of Costa Mesa commonly known and described as 1375 Sun
flower Avenue, Costa Mesa, California
, and more particularly
described in
Attachment A
, attached hereto

and incorporated herein by
this
reference (“
Grantor
Property
”)
.

WHEREAS
, pursuant to the terms of that certain Trail Easement Agreement dated as of November ___, 2023 and recorded in the Official Records of Orange County, California prior to the recordation of this Easement Agreement
(the “
Hive Trail Easement Agreement
”)
, Th
e Hive Creative Office, Inc., a
Delaware corporation (“
Hive Owner
”) granted to Grantor an easement in and to the real property more particularly described in
Exhibits A and B

attached hereto and consented to the grant of the Open Space Easement to the City

by Grantor subject to and in accordance with the terms and conditions of this Easement Agreement.

ATTACHMENT 2
194
2 EASEMENT DEED AND AGREEMENT

WHEREAS
,
Grantor has a
greed to
dedicate the Open Space Easement for open space and public recreation purposes and thereafter
maintain

the Open Space Easemen
t Area
, including landscape
maintenance,

and keep
the Open Space Easement Area
open to the public;

WHEREAS
,
Grantor intends to
construct and maintain
upon the

Open Space Easement Area
certain recreational improvements
, including
,

but not limited to
,

a
multi
-
use pedestrian and bicycle

path
,
signage, metal handrails, fencing, landscaping, gateways, paving, workout facilities, and seating ;

WHEREAS
, Grantor enters into this Easement Agreement pursuant to the Conditions of Approval (defined below).

AGREEMENT

NOW, THEREFORE
, for and in consideration of the covenants herein contained, performed and to be performed, the parties hereto agree as follows:

1. Definitions
.

The following definitions shall be used:
a.

Conditions of Approval

means the document outlining the conditions imposed by the City in conjunction with its approval of Zoning Application PA
-
17 -
03 A2 Master Plan Amendment
for 1375 Sunflower Avenue,
attached hereto as
Attachment

B
.
b.

City

means the City of Costa Mesa, includi
ng its elected and appointed officials, employees,
agents and contractors.
c.

Grantor
means

THE PRESS OWNER, LLC
,

a Delaware
limited liability company,
including its successors, heirs and assigns.
d.

Hive Owner
means
THE HIVE CREATIVE OFFICE, INC.
, a

Delaware
co
rporation,
including its successors, heirs and assigns.
e.

Improvements

means the
multi
-
use pedestrian and bicycle path, signage, metal handrails, fencing, landscaping, gateways, paving, workout facilities and seating now constructed or at
any time in the fut
ure constructed or placed upon

the Open Space Easement Area
, including
any future replacements and additions.
f.

Open Space Easement Area
means the multi
-
use
recreational
path

area running
from
Sunflower Avenue to South Coast Drive
, as more specifically descr
ibed in Exhibits A through
D of the Easement Deed granted herein above.
g.

Press Property
means

that certain
real property in the City of Costa Mesa commonly known
and described as 1375 Sunflower Avenue, Costa Mesa, California , and more particularly
described in
Attachment A
.
h.

Safety Hazard

means a
n open and observable

real property
condition or practice that, if not
fixed, could cause a serious accident, injury, illness, or death, as reasonably
determined by the
City.

2. Construct
ion of Improvements
.

Grantor

shall construct

and maintain the Improvements
in the Open Space Easement Area
according to the Conditions of Approval and this
Easement Agreement
.

ATTACHMENT 2
195
3 EASEMENT DEED AND AGREEMENT

3. Maintenance of
Open Space Easement
Area and Improvements
.

Grantor

agree
s

to
maintain
the

Improvements in the Open Space Easement Area
in a condition
reasonably
acceptable to City
and to repair any

material

defects or deficiencies as they
may
occur. Any condition
in the Open Space
Easement Area
that may present a Safety Hazard to t
he public shall be
promptly
repaired upon
Grantor

becoming or being made aware of the
Safety Hazard

or within five (5) working days from
Grantor’s receipt
of written
notification
of a Safety Hazard within the Open Space Easement Area
by the City.

Grantor
shall
immediately block access to the applicable portion of the Open Space Easement Area, or take other reasonable and necessary steps, to protect the public from such Safety Hazard(s) until it is repaired.

If such
Safety Hazard
cannot
reasonably
be repai
red within such five (5)
working
day period,
Grantor

shall
commence such repairs within such five (5)
working
day period and thereafter diligently pursue completion
of such repairs.

Failure of
Grantor

to repair, or
commence the

repair

of
, a Safety Hazard, within five (5)
working
days’ notice from the City constitutes a material breach of this

Easement Agreement
.

4. Labor and Equipment
.

Grantor

agree
s

to furnish all labor, tools, equipment and material
for the maintenance and repair o
f

the O
pen Space Easement
Area
, including its

Improvements.

Grantor

further agree
s

that all work done or undertaken by
Grantor

on the Open Space Easement Area, including
the construction, maintenance and repair of the Improvements,

shall be
done independently
an
d not as
an
agent, servant or contractor for City.

5. Authorization to Enter
Open Space Easement Area
.

Grantor

agree
s

and authorize
s
the
City, its employees, officers and agents, as well as the public at large, to enter in to

and upon the
Open Space
Easement Area
, including use of the gates at the entrance and exit of the Open Space Easement Area for
open space and public recreational purposes only
,
which
such City and/or public access
may be restricted
by Grantor
upon written authorization of the Cit
y, in the City’s sole discretion.

6. Public Access to
Open Space Easement Area
.

Grantor

specifically acknowledge
s

that
the
Open Space Easement Area
, including the gates at the entrance and exit of the
Open Space Easement
Area
, shall be open to the general pu
blic

for open space and public recreational purposes
.

Grantor

further
agree
s

that at no time shall
Grantor

prevent, deter or hinder City or any member of the general public from entering into, upon, or onto the
Open Space Easement Area;
provided
,
however
, that
City, in its sole
discretion, may allow restrictions to public access to the Open Space Easement Area, including allowing
Grantor to close the gates between dusk and dawn, or during such other times designated by the City, and further provided
,
howe
ver
, that Grantor shall
have the right to temporarily restrict the general public ’
s
access to the
Open Space
Easement Area as necessary or convenient from time to time in order to implement Grantor’s construction, maintenance and repair obligations as set forth in this Easement Agreement.

Without limiting the generality of the foregoing,
Grantor
hall have the right to install temporary access
barriers to effectuate such restricted access
, provided, however, that such restricted accees shall not exceed thre
e (3) days duration at any one time or a total of ten days in any 365 day period without written authorization by the City.

7. Damage to
Open Space Easement
Area and Improvements
. Grantor agrees and hereby
assumes all responsibility for any damages arising

out of or resulting from Grantor’s acts or omissions with regard to the Open Space
Easement
Area
, including its
Improvements thereon
,

as required by the terms of
this Easement Agreement. As set forth herein, Grantor shall repair and replace damaged facil ities,
equipment, or landscaping within the
Open Space Easement
Area
, including

the

Improvements thereon, as
needed
, regardless of the source of the damage
.

ATTACHMENT 2
196
4 EASEMENT DEED AND AGREEMENT

8. Indemnification and Hold Harmless
.

Grantor
hereby accept
s

and assume
s

any and all
liability for
any injury or property damage
occurring on or about the Open Space Easement Area, including the Improvements thereon, to the extent such liability exists against Grantor under California law.

Grantor
assume
s

all liability for claims arising
out of or resul
ting from Grantor’s acts or omissions
in connection
with the
construction, maintenance and repair of the Open Space Easement Area

and

the

Improvements
including, but not limited to, claims for injuries sustained by any member of the public or other
third
parties,
including agents and employees of City, from any alleged defect or dangerous condition related to the
construction or maintenance of the Improvements in the Open Space Easement Area caused by the act or omission of Grantor. Grantor

shall defend

wi
th the attorneys reasonably acceptable to City,
indemnify, and
hold free and harmless the City, its elected and appointed officials, officers, agents and employees, from and against any and all claims, demands, suits, actions, liabilities, expenses, damage s

(other than special,
consequential, exemplary or punitive damages)
, or proceedings of any kind or nature, including, but not limited to, all civil claims, arising out of or relating to the
construction, use, operation, repair, replacement,
maintenance of

the
Open Space Easement
Area and
/or

Improvements, in connection with this
Easement
Agreement
.

Grantor’s

obligation to defend, indemnify, and hold free and harmless the City from such costs and liabilities shall continue in full force and effect and shall survive termination or expiration of this Easement
Agreement (but shall survive only with respect to the

period in which this Easement Agreement
was in full force and effect, and shall not extend to any claims arising after this Easement Agreement has been terminated or expired).

The defense obligation provided for hereunder shall apply without any advance s
howing of negligence or wrongdoing by
Grantor
,
its

employees, and/or authorized subcontractors, but
shall be required whenever any claim, action, complaint, or suit asserts as its basis the acts, errors, or omissions of
Grantor, its
employees, and/or autho
rized subcontractors in connection with
this Easement
Agreement
, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents and employees based upon the maintenance or lack thereof perfo rmed, the
Improvements installed, repaired, or maintained by
Grantor
,
its e
mployees, and/or authorized
subcontractors under this
Easement Agreement
, whether or not
Grantor
,
its
employees, and/or authorized
subcontractors are specifically named or otherwise

asserted to be liable. Notwithstanding the foregoing,
Grantor

shall not be liable for the defense or indemnification of the City for claims, damages, costs,
liabilities, actions, complaints or suits arising out of the gross negligence or willful misconduc
t o
f

the City,
its elected and appointed officials
,

officers, agents and/or employees.

9. Insurance
.

Grantor
,
its

successors and assigns, shall obtain and maintain during the life of this
Easement Agreement

the following insurance coverage covering the
Open

Space Easement Area
and its the Improvements, including
the use of the
Open Space

Easement Area
by the public:

a.

Commercial general liability, including premises
-
operations, products/completed operations,
broad form property damage, blanket contractual liab
ility, independent contractors, and
personal injury, with a policy limit of not less than one million dollars ($1,000,000.00) combined single limits, per occurrence and aggregate.

Grantor’s

com
mercial
general liability
insurance policy shall contain or be

endorsed to contain to the following provisions:
i.

Additional insureds:

“The City of Costa Mesa and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject property pursuant to contract with Ci
ty.”
ii.

Notice:

“Said policy shall not terminate, nor shall it be canceled, nor the coverage reduced, until thirty (30) days (or until ten (10) days in the case of non -
payment of
premium) after written notice is given to City.”
ATTACHMENT 2
197
5 EASEMENT DEED AND AGREEMENT

iii.

Other insurance:

“Any other i
nsurance maintained by the City of Costa Mesa shall
be excess and not contributing with the insurance provided by this policy.” b.

Grantor

shall provide to City certificates of insurance showing the insurance coverages and required endorsements described abov
e, in a form and content approved by City, promptly
following the full execution
and delivery
of this
Easement Agreement

and shall provide
renewal certificates to the City prior to expiration of each policy period. c.

Nothing in this Section shall be constru
ed as limiting in any way, the indemnification provision contained in this
Easement Agreement
, or the extent to which
Grantor
,
its
heirs, successors,
agents and/or assigns, may be held responsible for payments of damages to persons or property.

10. Covenants t
o Run

With the Property
.

T
his Easement Agreement

shall run with the
Grantor Property
and shall be
binding upon inure to the benefit of Grantor and the City, and their

respective

successors, assigns, heirs and legal representatives and shall continue in effect for so long as the Open Space
Easement
Area exist
s or until this Easement Agreement is terminated or expires .

11. Sale or Transfer of Property; Successors and Assigns .

This

E
asement Agreement

and
the covenants made herein shall continue in effect and shall be binding on all successors, assigns, heirs and legal representatives of the parties hereto. The rights and obligations of this Easement Agreement

shall be
binding upon any

new
or successor owner(s)
of the
Grantor
Property

and such new or successor owner(s)
shall thereafter be deemed the Grantor as set forth in this Easement Agreement during the period it owns the fee interest in the Grantor Property;

provided

that
Grantor m
ay not transfer its fee interest in the Grantor
Property
without
also transferring and the new or successor owner assuming all corresponding obligations,
duties and reservations contained in this
Easement Agreement
. Without limiting the scope of the forego
ing,
Grantor

specifically acknowledge
s

that any

new or successor owner(s) of the Grantor Property
shall be
subject to the requirements for indemnification

and

insurance

as set forth herein for the period of the new
or successor owner(s) ownership of the Gr
antor Property. Grantor

agree
s

to disclose th
is Easement
Agreement
to any prospective purchasers or transferees of the
Grantor
Property

(it being understood that
by recording this Easement Agreement against title to the Grantor Property, Grantor shall be deemed to
have satisfied such disclosure obligations and such prospective purchasers or transferees shall be deemed to have imputed knowledge of this Easement Agreement)
, and any such

new or successor

owner of the
Grantor Property
shall, upon
the reasonabl
e
request of the City, execute such acknowledgements,
assignments or agreements demonstrating he/she/it is aware of this Easement Agreement
and agrees to the
terms hereof.

The foregoing notice requirements shall not apply to a lender or mortgagee succeed ing to
the interest of Grantor in or to the Grantor Property or any portion thereof.

Grantor

shall notify City within thirty (30) days following the sale, transfer or assignment by Grantor

of its
fee i
nterest in the
Grantor Property, including with such no
tice the name and contact
information for the new or successor owner of the Grantor Property . Upon any such sale, transfer or
assignment
of the Grantor Property
by
Grantor
, the rights and obligations of
Grantor

hereunder shall
automatically be transferred
and assigned

to the new or successor owner of the Grantor Property and that owner shall thereafter be deemed the Grantor hereunder
, and the
former Grantor (as the former owner of
the Grantor Property)
shall be released from any further obligations
arising
under this Easement Agreement
from and after the date of the transfer of the fee interest in the Grantor Property to the new Grantor owner .

The foregoing requirements set forth in this paragraph shall not apply to a lender or mortgagee succeeding to the in
terest of Grantor in or to the Grantor Property or any portion thereof.

ATTACHMENT 2
198
6 EASEMENT DEED AND AGREEMENT

12. Violation of Agreement
.

The parties agree that any violation of this
Easement Agreement
by
Grantor

could cause the City irreparable harm for which monetary damages would be an inadequate remedy. Therefore, the parties agree that City shall be entitled to equitable relief to enforce the terms hereof, including
,

but not limited to
,

specific performance a
nd/or appropriate injunctive
relief. The
p
arties agree
that the rights and remedies set forth herein are not exclusive and that exercise by either party of any right or remedy does not preclude exercise of any rights or remedies available at law or in equ ity.

13. Confirmation of Compliance
. Upon request by Grantor

or Hive Owner

from time to time,
and within thirty (30) days of such request,
City shall execute and deliver to Grantor
, its

members, investors
and lenders, and to any prospective
purchaser or trans
ferees
of the
Grantor
Property or the Hive Property,
or their respective lenders and investors, written confirmation that this Easement Agreement

remains

unmodified and

in full force and effect and no breach or default by Grantor exists hereunder , or if a
breach
or default does exist, specifying each such default and whether any amounts are due from Grantor, and the amount so due hereunder
.

14. Notice Pursuant to California Civil Code Section 813 .

The right of the public or any
person to make any use whatsoever of the
Open Space
Easement Area or any portion thereof
(other than
any

use

expressly

allowed

by a written or recorded

map,

agreement, deed

or

dedication)
is by permission,
and subject to cont
rol of the Grantor

or the City as set forth herein (See
Section 813, Civil Code
).

By this
Easement Deed and Easement Agreement
, Grantor grants express permission for use of the

Open Space

Easement Area by
the City and the
general public on the terms and conditions set forth
herein.

No use of
the
Open Space

Easement Area or any other portion of Grantor Property or other lands owned by Grantor, by
the City
and
/or

by members of the general public, and no construction, mainten ance, repair or use of
improvements thereof by
the City, members of the general public
or any third party, shall ripen to confer
on
the City or
any member of the general public, or any other party a vested, prescriptive or other right, title or interest in

or to the
Open Space

Easement Area
(except as expressly set forth herein)
or any other
portion of Grantor Property or other lands owned by Grantor.

15. Waiver
. The delay or failure of the parties at any time to require performance or compliance by the other
of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Easement Agreement

shall be effective unless in writing and signed by a duly authorized

representative of the party against whom
enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

16. Amendments or Modifications
. Any supplement, modification or amendment of this
Easement Agreement

shall be valid only if executed in writing and signed by both City and Grantor or their successors in interest.

17. No
tices
. All notices permitted or required under this
Easement Agreement

shall be
delivered to the respective parties at the following addresses or at such other address as the parties may provide:

GRANTOR
:

THE PRESS

OWNER, LLC

c/o Invesco
Advisers, Inc.

2 001 Ross Avenue, Suite 3400

Dallas, Texas 75201

Attention:

The Press

Asset Manager

ATTACHMENT 2
199
7 EASEMENT DEED AND AGREEMENT

With copies to
:

THE PRESS

OWNER, LLC

c/o Invesco Real Estate

620 Newport Center Drive, Suite 300

Newport Beach, CA 92660

Attention: Senior Asset Manager

CITY
:

City of Costa Mesa

77 Fair Drive

Costa Mesa, CA 92626

Attn:

City Manager

With copies to
:

JONES MAYER

3777 N. Harbor Boulevard

Fullerton, CA 92835

Attention: Costa Mesa City Attorney

Such communications shall be deemed served or delivered: (a) at the time of delivery if such communication is sent by personal
or overnight
delivery

(including Federal Express)
; and (b) 72 hours
after deposit in the U.S. Mail as reflected by the official U .S. postmark if such communication is sent
through regular United States mail.

Any

party may change the designations set forth herein upon written notice to the other party.

18. Attorneys’ Fees
. In the event that litigation is brought by any party in connecti on with
this
Easement Agreement
, the prevailing party shall be entitled to recover from the opposing party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of its rights or remedies hereu
nder or the enforcement of any of the terms, conditions, or provisions hereof.

19. Governing Law
. This
Easement Agreement

shall be governed by and construed under the
laws of the State of California without giving effect to that body of laws pertaining to con flict of laws. In
the event of any legal action to enforce or interpret this Easement Agreement
, the parties hereto agree that
the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California.

20. Severability
. If a
ny provision of this
Easement Agreement

is determined by a court of
competent jurisdiction to be unenforceable in any circumstance, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the of fending provision in any
other circumstance. Notwithstanding the foregoing, if the value of this Easement Agreement
, based upon
the substantial benefit of the bargain for any party is materially impaired, which determination as made by the presiding court
or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.

21. Authority
. The persons executing this
Easement Agreement

on behalf of the parties hereto
warrant that they a
re duly authorized to execute this
Easement Agreement

on behalf of said parties and that
by doing so, the parties hereto are formally bound to the provisions of this Easement Agreement
.

ATTACHMENT 2
200
8 EASEMENT DEED AND AGREEMENT

22. Recordation
. Upon execution of this
Easement Agreement
, it shall be r
ecorded in the
Official Records of the Clerk
-
Recorder of Orange County, California.

23. Effective Date
. This
Easement Agreement

shall become effective upon the date a duly
executed and acknowledged original of this
Easement Agreement

is recorded in the Offici
al Records of the
Clerk
-
Recorder of Orange County.

24. Entire Agreement
.

This
Easement Agreement

and the both the attachments and exhibits
attached hereto constitute the entire understanding and agreement of the parties with respect to the subject matter set f
orth herein and supersedes any and all other previous agreements whether oral or written, between the parties hereto. Each party to this
Easement Agreement

acknowledges that no representations,
inducements, promises or agreements, orally or otherwise, have

been made by any party, or anyone acting
on behalf of any party, which are not embodied herein.

25. Attachments
.

This document includes the following exhibits and attachments which are attached hereto and made part hereof:

EXHIBIT A (East Portion of Rail T
r
ai
l, Legal Description)

[
Hive Property Easement Area
]

See attached

EXHIBIT B (East Portion of Rail Trail, Open Space Easement)

[
Diagram of Hive Property Easement Area
]

See attached

EXHIBIT C (West Portion of Rail Trail, Legal Description)

[
Press
Property Easement Area
]

See attached

EXHIBIT D (West Portion of Rail Trail, Open Space Easement)

[
Diagram of Press Property Easement Area
]

See attached

Attachment A (Property, Legal Description)

(
Press Property
)

See attached

Attachment
B

(Conditions of Approval PA
-
17 -
02 A2)

See attached

[SIGNATURE PAGE FOLLOWS]

ATTACHMENT 2
201
202
10 EASEMENT DEED AND AGREEMENT

CITY
:

CITY OF COSTA MESA

a Municipal Corporation

___________________________

Lori Ann Farrell Harrison

City Manager

(Notarization Required)

APPROVED AS TO FORM

FOR THE CITY

___________________________

Kimberly Hall Barlow

City Attorney

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulne ss, accuracy, or validity of that document.

State of California

)

County of _____________________

)

On ____________________, before me, ____________________________, Notary Public, personally appeared _______________________________, who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) o n the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State

of
California
that the
foregoing paragraph is true and correct.

WITNESS my hand
and official seal.

Signature

ATTACHMENT 2
203
SMRH:4876
-
8057
-
6899.14

EXHIBIT A

-
1 -

EASEMENT DEED AND AGREEMENT

Diagram of
Hive Easement Area

–

Legal Description

35GW
-
369744

EXHIBIT A

(East Portion of Rail T
r
ail, Legal Description)

[
Hive Property Easement Area
]

An Easement interest in the following described property, created by that certain Trail Easement Agreement dated as of
November
___, 2023 by and between THE HIVE CREATIVE OFFICE, INC., a Delaware corporation (“Grantor’’), and THE PRESS OWNER, LLC, a Delawa re limited liability company
, recorded
in the Official Records of Orange County, California on November ___, 2023 as instrument number ________________, and more particularly described as follows:

[SEE ATTACHED]

ATTACHMENT 2
204
2/21/23

OPEN SPACE EASEMENT
EXHIBIT "A"

LEGAL DESCRIPTION
APN: 140-042-12, -13

THAT CERTAIN PARCEL OF LAND SITUATED IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF CALIFORNIA, BEING A PORTION OF PARCEL 3 OF PARCEL MAP NO. 94-120 RECORDED IN BOOK 284, PAGES 7 THROUGH 10 INCLUSIVE OF PARCEL MAPS IN SAID COUNTY AND IS DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CORNER OF SAID PARCEL 3 ALSO BEING THE NORTH LINE OF SOUTH COAST DRIVE, HAVING A HALF WIDTH OF 42.00 FEET;
lHENCE ALONG SAID NORTH LINE OF SOUTH COAST DRIVE SOUTH 89.40'32" EAST 20.89 FEET; lHENCE LEAVING SAID NORTH LINE OF SOUTH COAST DRIVE AND ALONG THE EASTERLY LINE OF SAID PARCEL OF LAND NORTH 1·05'08" EAST 426.70 FEET;
lHENCE NORTH 89.08'56" WEST 10.51 FEET;
lHENCE NORTH 0•22' 48" EAST 800.54 FEET;
lHENCE NORTH 89.40'34" WEST 0.94 FEET TO A LINE PARALLEL WITH AND 15.00 FEET EAST OF THE WEST LINE OF SAID PARCEL 3;
lHENCE ALONG SAID PARALLEL LINE NORTH 0·21'56" WEST 145.71 FEET TO THE SOUTH LINE OF SUNFLOWER A VENUE, HAVING A HALF WIDTH OF 42.00;
lHENCE ALONG SAID SOUTH LINE OF SUNFLOWER AVENUE NORTH 89.40'34" WEST 15.00 FEET TO

THE INTERSECTION OF SAID SOUTH LINE OF SUNFLOWER AVENUE AND THE WEST LINE OF SAID PARCEL 3;
lHENCE ALONG SAID WEST LINE OF SAID PARCEL 3 SOUTH 0•21'56" EAST 1373.00 FEET TO THE POINT OF BEGINNING.

CONTAINING A TOTAL AREA OF 24,924 SQUARE FEET, MORE OR LESS.

ALSO SHOWN IN EXHIBIT "8" ATTACHED HEREWITH AND MADE A PART HEREOF.

THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY SUPERVISION, IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYOR'S ACT.

DATE
LICENSE EXPIRES: 12-31-
PAGE 1 OF 1
No. 8899
OWNER: THE PRESS OWNER, LLC.

ATTACHMENT 2
205
SMRH:4876
-
8057
-
6899.14

EXHIBIT B

-
1 -

EASEMENT DEED AND AGREEMENT

Diagram of
Hive Easement Area

35GW
-
369744

EXHIBIT B

(East Portion of Rail Trail, Open Space Easement)

[
Diagram of Hive Easement Area
]

[ATTACHED]

ATTACHMENT 2
206
1 OF 3
LEGEND:

SITE

VICINITY MAP

NOT TO SCALE
2/21/23

OPEN SPACE EASEMENT
EXHIBIT "B" W MACARTHUR BLVD
~ Cl
APN: 140-042-12, -13, &-19
_J 0:::

NUE -----.---S~~ROWi_E_R ___ Affi - -
en SUNFLOWER A VE :s::
w
> 0:::

I
I
\

INSTRUMENT NO,
92~B94905 0,R
I
<(
u...
x,_\ J I PARCEL -1 <:\
LLA NO, LL 2-1-02 s0'v
PAFlCEL 2
LLA No, LL 2-1-02
lNs-rnUMEJ\t( No,
202-woo1-wB-13
lNSTFlUMENT NO, <-
202-1000?-l0B-13 sS'v
PAFlCEL 3
PAHCEL MAP NO, 94--120
PJvLB, 28417--JO
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NOTTO SCALE
SOUTH COAST DRIVE ----+--- --t--+----
DATE:

No. 8899
--------
PLAT

CITY OF COSTA MESA

COUNTY OF ORANGE

STATE OF CALIFORNIA
P.O.B. POINT OF BEGINNING

PARCEL LINE

EASEMENT BOUNDARY

STREET CENTERLINE

RAIL TRAIL EASEMENT
AREA= 24,924 SF +/-
OWNER: THE PRESS OWNER, LLC.

TAIT & ASSOCIATES INC.

Engineering -Surveying • Environmental
701 PARKCENTER DRIVE, SANTA ANA, CALIFORNIA 92705
TEL. (714) 560-8200
ATTACHMENT 2
207
2 OF 3
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THE INTENT IS THAT THE EASTERLY LINE OF SAID EASEMENT
BE CONTROLLED BY THE EXISTING FENCE LINE.

WESTERLY PORTION I OF THE EASEMENT BY SEPARATE DOCUMENT PARCEL 1

PROPERTY LINE
LL.A. NO. LL 21-02
JNSTRUMENT NO. 2021000710B13
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WESTERLY PORTION OF THE EASEMENT

BY SEPARATE DOCUMENT
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209
SMRH:4876
-
8057
-
6899.14

EXHIBIT C

-
1 -

EASEMENT DEED AND AGREEMENT

Press
Easement Area

–

Legal
Description

35GW
-
369744

EXHIBIT C

(West Portion of Rail Trail, Legal Description)

[
Press Property Easement Area
]

[ATTACHED]

ATTACHMENT 2
210
EXHIBIT "A"

RAIL TRAIL EASEMENT

LEGAL DESCRIPTION
APN: 140-042-16, -17 & -20
OWNER: THE PRESS OWNER, LLC.

EXHIBIT "C"

OPEN SPACE EASEMENT
&19
ATTACHMENT 2
211
EXHIBIT "A"

RAIL TRAIL EASEMENT

LEGAL DESCRIPTION
APN: 140-042-16, -17 & -20
OWNER: THE PRESS OWNER, LLC.
2/21/23
EXHIBIT "C"

OPEN SPACE EASEMENT
& 19
ATTACHMENT 2
212
SMRH:4876
-
8057
-
6899.14

EXHIBIT D

-
1 -

EASEMENT DEED AND AGREEMENT

Diagram of Press
Easement Area

35GW
-
369744

EXHIBIT D

(West Portion of Rail Trail, Open Space Easement)

[
Diagram of Press Property Easement Area
]

[ATTACHED]

ATTACHMENT 2
213
1 OF 3 CITY OF COSTA MESA

COUNTY OF ORANGE

STATE OF CALIFORNIA
TAIT & ASSOCIATES INC.
701 PARKCENTER DRIVE, SANTA ANA, CALIFORNIA 92705
TEL. (714) 560-8200
Engineering Surveying Environmental
PLAT
LEGEND:

POINT OF BEGINNING

PARCEL LINE

EASEMENT BOUNDARY

STREET CENTERLINE
PREPARED UNDER MY DIRECTION:
______________________________
MICHAEL FURLONG, PLS 8899
DATE: ________________________
N
P.O.B.

RAIL TRAIL EASEMENT
AREA = 10,318 SF +/-
EXHIBIT "B"

RAIL TRAIL EASEMENT
APN: 140-042-16, -17 & -20
405
SITE

VICINITY MAP

NOT TO SCALE
OWNER: THE PRESS OWNER, LLC.

NOT TO SCALE
2/21/23
EXHIBIT "D"

OPEN SPACE EASEMENT
&19
ATTACHMENT 2
214
2 OF 3 CITY OF COSTA MESA

COUNTY OF ORANGE

STATE OF CALIFORNIA
TAIT & ASSOCIATES INC.
701 PARKCENTER DRIVE, SANTA ANA, CALIFORNIA 92705
TEL. (714) 560-8200
Engineering Surveying Environmental
PLAT

CONTINUED AT

LOWER RIGHT
N
EXHIBIT "B"

RAIL TRAIL EASEMENT
N
1 inch = ft. 401 inch = ft. 40

CONTINUED FROM

ABOVE LEFT
SEE SHEET 3 OF 3
EXHIBIT "D"

OPEN SPACE EASEMENT
ATTACHMENT 2
215
3 OF 3 CITY OF COSTA MESA

COUNTY OF ORANGE

STATE OF CALIFORNIA
TAIT & ASSOCIATES INC.
701 PARKCENTER DRIVE, SANTA ANA, CALIFORNIA 92705
TEL. (714) 560-8200
Engineering Surveying Environmental
PLAT
N
EXHIBIT "B"

RAIL TRAIL EASEMENT

CONTINUED AT

LOWER RIGHT

CONTINUED FROM

ABOVE LEFT
N
1 inch = ft. 40
1 inch = ft. 40
SEE SHEET 2 OF 3
EXHIBIT "D"

OPEN SPACE EASEMENT
ATTACHMENT 2
216
SMRH:4876
-
8057
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6899.14

ATTACHMENT A

-
1 -

EASEMENT DEED AND AGREEMENT

Legal Description Press Property

35GW
-
369744

ATTACHMENT

A

LEGAL DESCRIPTION

(
The Press Property, Legal Description
)

THE LAND REFERRED TO

HEREIN BELOW IS SITUATED IN THE CITY OF COSTA

MESA IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

PARCEL A:

PARCEL 1 OF LOT LINE ADJUSTMENT NO. LL 18
-
04, IN THE CITY OF COSTA MESA,

COUNTY OF ORANGE, STATE OF
CALIFORNIA, RECORDED FEBRUARY 13, 2020 AS
INSTRUMENT NO. 202000062319 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA:

EXCEPTING THEREFROM THE NORTH 232.52 FEET OF THE SOUTH 338.56 FEET OF THE WEST 152.62 FEET OF SAID PARCEL 1.

ALSO EXCEPTING, FROM A PORT

ION OF SAID LAND, ALL OIL, GAS/HYDROCARBON

SUBSTANCES AND MINERALS BY WHATEVER NAME KNOWN IN, ON OR UNDER THE ABOVE DESCRIBED LAND BELOW A DEPTH OF 500 FEET MEASURED

VERTICALLY FROM THE SURFACE OF THE GROUND, BUT WITHOUT THE RIGHT OF

ENTRY UPON ANY PORTION

OF THE SURFACE OF THE GROUND ABOVE A DEPTH
OF 500 FEET FOR THE PURPOSE OF EXPLORING FOR, BORING, MINING, DRILLING,

REMOVING, EXTRACTING OR MARKETING SAID SUBSTANCES, TOGETHER WITH

THE EXCLUSIVE RIGHT TO EXECUTE ANY AND ALL LEASES FOR THE PURPOSE OF EXTRAC

TING OR RECOVERING SAID SUBSTANCES, AS RESERVED IN DEED RECORDED JANUARY 18, 1966.

ALSO EXCEPTING, FROM A PORTION OF SAID LAND, ALL MINERAL RIGHTS, BUT WITHOUT RIGHT OF ENTRY ON THE SURFACE OR WITHIN 500 FEET THEREOF, AS RESERVED BY C.J. SEGERSTROM & SONS,

A GENERAL PARTNERSHIP, IN THE DEED
RECORDED JANUARY 24, 1979 IN BOOK 13010, PAGE 1413 OFFICIAL RECORDS.

ALSO SHOWN AND DESCRIBED AS EXHIBIT “A” IN LOT LINE ADJUSTMENT NO. LL 21 -
02, RECORDED NOVEMBER 19, 2021 AS INSTRUMENT NO. 2021
-
710813, OFFICIAL

RECORDS
.

PARCEL B:

PARCEL 2 OF LOT LINE ADJUSTMENT NO. LL 18
-
04, RECORDED FEBRUARY 13, 2020
AS INSTRUMENT NO. 202000062319 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA.

EXCEPTING ALL MINERAL RIGHTS, BUT WITHOUT RIGHT OF ENTRY ON THE SURFACE OR WITHIN 500 FEET

THEREOF, AS RESERVED BY C. J. SEGERSTROM &
ATTACHMENT 2
217
SMRH:4876
-
8057
-
6899.14

ATTACHMENT A

-
2 -

EASEMENT DEED AND AGREEMENT

Legal Description Press Property

35GW
-
369744

SONS, A GENERAL PARTNERSHIP, IN THE DEED RECORDED JANUARY 24, 1979 IN BOOK 13010, PAGE 1413 OFFICIAL RECORDS.

APN: 140
-
042
-
16; 140
-
042
-
17;
140
-
042
-
19; and
140
-
042
-
20 ATTACHMENT 2
218
SMRH:4876
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8057
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6899.14

EXHIBIT B

-
1 -

TRAIL EASEMENT AGREEMENT

111623

Depiction of
Easement Area

35GW
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369744

ATTACHMENT

B

CONDITIONS OF APPROVAL

(
Conditions of Approval PA
-
17 -
02 A2
)

[see attached
–

for conditions of approval dated as of August 19, 2021
Zoning Application PA
-
17 -
03 A2
Master Plan Amendment for 1375 Sunflower Avenue
]

ATTACHMENT 2
219
PA-17-03 A2
August 19, 2021

site planning, integration of Uses and structures and protection of the integrity of neighboring development.

Facts in Support of Finding: The proposed master plan amendment includes a change in the character of the use from a creative office space and food hall to a single use tenant in a campus like setting with on-site manufacturing, research, dining and outdoor space. The buildings would be modernized in appearance, and landscaping incorporated thought the site and parking areas. Conditions of approval will ensure that the mix of uses within the site would not adversely impact neighboring uses and developments. The master plan as modified provides for a creative mix of uses integrated into a single development with a unique layout and architectural design and appropriate setbacks, landscaping and pedestrian and bike connections. The project reflects high quality site planning and development. Additionally, the building front setbacks meet the minimum required by code and will be extensively landscaped to provide an attractive streetscape. The integrated design of the buildings, outdoor use areas, and pedestrian and bike connections will provide a cohesive development. The percentage of compact spaces stay consistent with the previous approval that included a total of 10 percent of the total number of parking spaces.

B. An addendum to the Initial Study/Mitigated Negative Declaration (IS/MND) has been prepared for the project in accordance with the California Environmental Quality Act (CEQA). In accordance with CEQA Guidelines Section 15073, the addendum was made available for a 10-day public review and comment period from August 6, 2021 to August 18, 2021.

C. The original project was subject to traffic impact fees in the amount of $927,216.00 and San Joaquin Hills Corridor Fees in the amount of $1,076,666.91 which have been submitted on June 30, 2021. Since the new amendment results in fewer number of peak hour and daily trips, no additional impact fees are required.

CONDITIONS OF APPROVAL

Planning 1. This master plan amendment shall continue to comply with the conditions of approval, code requirements, and mitigation measures of the IS/MND.

2. Any change in the approved development plan or operational characteristics shall require review by the Planning Division and may require an amendment to the master plan, subject to either Zoning Administrator or Planning Commission approval, depending on the nature of the proposed change. Signage and artistic graphics shall be reviewed separately and are not subject to master plan approval. The applicant is reminded that the Code allows the Planning Commission to modify or revoke any planning application based on findings related to public nuisance and/or noncompliance with conditions of approval [Title 13, Section 13-29(0)].

ATTACHMENT 2
220
PA-17-03 A2
August 19, 2021

10. 11.

12. If any mitigation measures from the IS/MND are removed, the Planning Commission must make a finding that the project will not result in significant environmental impacts.

The conditions of approval and code requirements shall be blueprinted on the page following or containing the site plan.

The applicant shall execute and record a deed restriction for all properties within the 23.4-acre site disclosing the allowed development and maximum Floor Area Ratio and trip budget as allowed in the General Plan.

No modification(s) of the approved building elevations including, but not limited to, change of architectural type, changes that increase the building height, removal of building articulation, or a change of the finish material(s), shall be made during construction without prior Planning Division written approval. Specifically, elevations shall not be modified unless otherwise approved by the Development Services Director as consistent with the architectural design and features of the proposed development. Failure to obtain prior Planning Division approval of the modification could result in the requirement of the applicant to (re)process the modification through a discretionary review process or a variance, or in the requirement to modify the construction to reflect the approved plans.
ja ale bad XA 2 ‘aia 2 a 95h v $
Prior to issuance of building permits for Phase 2 3, the developer shall record a reciprocal access and parking agreement for the parking areas within the three parcels, as well as a Lot Line Adjustments modifying the current parcel configurations as required by the California Building Code.

The landscape/ hardscape plans for each phase shall include details for all trees, planting, and amenities and establish a pedestrian connection for future connectivity between all phases of the preliminary master plan.

All landscape improvements for each phase shall be installed prior to issuance of Certificate of Occupancy for the building. The landscape plans shall provide for a future pedestrian connection between all three parcels.

All planting and irrigation lines for the landscaping within the setback area along Sunflower Avenue shall be installed with Phase 1 of the project.

Prior to issuance of grading permits, developer shall submit for review and approval a Construction Management Plan. This plan features methods to minimize disruption to residential communities through specified measures, such as construction parking and vehicle access and specifying staging areas and delivery and hauling truck routes.

Developer shall submit a signed and completed Maintenance Agreement to the satisfaction of the Development Services Director and City Attorney's office requiring the developer to be 100% responsible for maintenance of ATTACHMENT 2
221
PA-17-03 A2
August 19, 2021

13. 14.
13)

16. 17.

18. the landscape easement and parkway areas along all the project boundaries.

The subject property's ultimate finished grade level may not be filled/raised in excess of 30 inches above the finished grade of any abutting property. If additional fill dirt is needed to provide acceptable onsite storm water flow to a public street, an alternative means of accommodating that drainage shall be approved by the City's Building Official and City Engineer prior to issuance of any grading or building permits. Such alternatives may include subsurface tie-in to public storm water facilities, subsurface drainage collection systems and/or sumps with mechanical pump discharge in-lieu of gravity flow. If mechanical pump method is determined appropriate, said mechanical pump(s) shall continuously be maintained in working order. In any case, development of the subject property shall preserve or improve the existing pattern of drainage on abutting properties.

Street trees in the landscape parkway shall be selected from Appendix D of the Streetscape and Median Development Standards and appropriately sized and spaced (e.g. 15-gallon size planted at 30 feet on centers), or as determined by the Development Services Director once the determination of parkway size is made. The final landscape concept plan shall indicate the design and material of these areas, and the landscape/hardscape plan shall be approved by the Planning Division prior to issuance of building permits.

Transformers, backflow preventers, and any other approved above-ground utility improvement shall be located outside of the required street setback area and shall be screened from view, under direction of Planning staff.

Any deviation from this requirement shall be subject to review and approval of the Development Services Director.

Trash facilities shall be screened from view, and designed and located appropriately to minimize potential noise and odor impacts.

Sign plans shall be submitted for all three Phases of the project including location, size, and details of all building and ground mounted signs and accent graphics. Signage shall be integrated and internally consistent throughout the project.

Prior to the issuance of Building Permits, the developer shall submit a Lighting Plan and Photometric Study for the approval of the City’s Development Services Department. The Lighting Plan shall demonstrate compliance with the following:
a. The mounting height of lights on light standards shall not exceed 18 feet in any location on the Project site unless approved by the Development Services Director.
b. The intensity and location of lights on buildings shall be subject to the Development Services Director's approval.
c. All site lighting fixtures shall be provided with a flat glass lens. Photometric calculations shall indicate the effect of the flat glass lens fixture efficiency.

ATTACHMENT 2
222
PA-17-03 A2
August 19, 2021

19. 20.

21. 22.

23. 24.
d. Lighting design and layout shall limit spill light to no more than 0.5-foot candle at the property line of the surrounding neighbors, consistent with the level of lighting that is deemed necessary for safety and security purposes on site. Glare shields may be required for select light standards.

The developer shall contact the Planning Division to arrange for an inspection of the site prior to the final inspections. The Planning Division inspection is to confirm that the conditions of approval and code requirements have been satisfied.

No exterior roof access ladders, roof drain scuppers, or roof drain downspouts are permitted. This condition relates to visually prominent features of scuppers or downspouts that not only detract from the architecture but may be spilling water from overhead without an integrated gutter system which would typically channel the rainwater from the scupper/downspout to the ground. An integrated downspout/gutter system which is painted to match the building would comply with the condition. This condition shall be completed under the direction of the Planning Division.

Developer shall submit any minor amendments to the Preliminary Master Plan to the Development Services Director for review and approval prior to submission of working plans/drawings for plan check.

Show method of screening for all ground-mounted equipment (backflow prevention devices, Fire Department connections, electrical transformers, etc.). With the exception of back-flow prevention devices, ground-mounted equipment shall not be located in any landscaped setback visible from the street and shall be screened from view, under the direction of Planning Staff.

Prior to issuance of grading permits, the applicant shall conduct soil sampling to demonstrate that there are no concentrations above the California Human Health Screening Levels (CHHSLs) for the proposed uses. No permits shall be issued until evidence that the on-site soils do not contain concentrations of chemicals of concern above the applicable CHHSLs has been provided to the Planning Department.

The applicant shall defend, indemnify, and hold harmless the City, its elected and appointed officials, agents, officers and employees from any claim, action, or proceeding (collectively referred to as “proceeding") brought against the City, its elected and appointed officials, agents, officers or employees arising out of, or which are in any way related to, the applicant’s project, or any approvals granted by City related to the applicant's project. The indemnification shall include, but not be limited to, damages, fees and/or costs awarded against the City, if any, and cost of suit, attorney's fees, and other costs, liabilities and expenses incurred in connection with such proceeding whether incurred by the applicant, the City and/or the parties initiating or bringing such proceeding. This indemnity provision shall include the applicant's obligation to indemnify the City for all the City's costs, fees, and damages that the City incurs in enforcing the indemnification provisions set forth in this section. City shall have the right to choose its own legal counsel ATTACHMENT 2
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PA-17-03 A2
August 19, 2021

Eng. 25.

26. 27.

28. 29.

30. 31.

32. 33.

34. to represent the City’s interests, and applicant shall indemnify City for all such costs incurred by City.

At the time of development submit for approval an Offsite Plan to the Engineering Division and Grading Plan to the Building Division that shows Sewer, Water, Existing Parkway Improvements and the limits of work on the site, and hydrology calculations, both prepared by a registered Civil Engineer or Architect. Construction Access approval must be obtained prior to Building or Engineering Permits being issued by the City of Costa Mesa. Pay Offsite Plan Check fee per Section 13-231 of the C.C.M.M.C. and an approved Offsite Plan shall be required prior to Engineering Permits being issued by the City of Costa Mesa.

Maintain the public Right-of-Way in a "wet-down" condition to prevent excessive dust and remove any spillage from the public Right-of-Way by sweeping or sprinkling.

Pay Offsite Plan Check fee per Section 13-231 of the C.C.M.M.C. and an approved Offsite Plan shall be required prior to Engineering Permits being issued by the City of Costa Mesa.

Obtain an encroachment permit from the Engineering Division for any work in the City public right-of-way. Pay required permit fee & cash deposit or surety bond to guarantee construction of off-site street improvements at time of permit per section 15-31 & 15-32, C.C.M.M.C. as approved by City Engineer. Cash deposit or surety bond amount to be determined by City Engineer.

Obtain a permit from the City of Costa Mesa, Engineering Division, at the time of development and then construct P.C.C. driveway approaches per City of Costa Mesa Standards as shown on the Offsite Plan. Location and dimensions are subject to the approval of the Transportation Services Manager. ADA compliance required for new driveway approaches.

Obtain a permit from the City of Costa Mesa, Engineering Division, at the time of development and then reconstruct damaged sidewalk per City of Costa Mesa Standards as shown on the Offsite Plan to comply with ADA requirements.

Obtain a permit from the City of Costa Mesa, Engineering Division, at the time of development and then reconstruct wheelchair ramps per City of Costa Mesa Standards as shown on the Offsite Plan to comply with ADA requirements.

Obtain a permit from the City of Costa Mesa, Engineering Division, at the time of development and then remove any existing driveways and/or curb depressions that will not be used and replace with full height curb and sidewalk at applicant's expense.

Fulfill Drainage Fee requirements per City of Costa Mesa Ordinance No. 06-19 prior to approval of Final Map/Approval of Plans.

In order to comply with the 2003 Drainage Area Management Plan (DAMP), the proposed Project shall prepare a Water Quality Management Plan conforming to the Current National Pollution Discharge Elimination System (NPDES) and the Model WQMP, prepared by a Licensed Civil Engineer or ATTACHMENT 2
224
PA-17-03 A2
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Trans.

35. 36.

38. 39.

40. 41.

42. 43.

44. Environmental Engineer, which shall be submitted to the Department of Public Works for review and approval.
a. A WQQMP (Priority or Non-Priority) shall be maintained and updated as needed to satisfy the requirements of the adopted NPDES program.

The plan shall ensure that the existing water quality measures for all improved phases of the project are adhered to.
b. Location of BMPs shall not be within the public right-of-way.

Maintain ingress/egress access rights over Parcel 2 as described on Parcel Map 98-227 recorded in the County of Orange.

The developer shall dedicate to the City a non-exclusive utility easement, 4-foot in width and 81-feet in length, parallel and adjacent to Sunflower Avenue at the northeast corner of the property.
. Developer shall construct wide flare or radius curb drive approaches at locations identified on site plan. Developer shall comply with minimum clearance requirements from property lines and any vertical obstructions.

Phase 3 Parking Structure Conditions:
a. Commercial/visitor parking spaces shall be at least 9 feet wide. Parking spaces shall be 18 feet in length.
b. All columns shall be recessed at least 4 feet from edge of parking aisle.

Increase width of parking spaces adjacent to columns or vertical obstructions by one foot.
c. Minimum parking aisle width shall be 25 feet.
d. All slopes of parking structure shall adhere to City of Costa Mesa Ramp Slope Standards.
e. Provide minimum turnaround area of 35 feet by 10 feet at end of all dead-end parking aisles.

Provide a traffic operation plan for construction related activities and parking management plan during the construction of the parking structure to the Transportation Division to review prior to building permit application.

Mill and overlay a minimum of 2 inches the entire westbound travel lanes along the frontage of the property on South Coast Drive.

Prior to building permit final for Phase 2, the developer shall construct and dedicate a lighted two-way Class 1 multi-purpose trail to the City of Costa Mesa to connect South Coast Drive and Sunflower Avenue along the east side of the project. Final design shall be subject to the review and approval of the Public Services Department.

The multi-purpose trail shall be maintained by the property owner.

The Final Master Plan shall be consistent with the trip rates established by the 2015-2035 General Plan. Alternatively, the applicant may prepare a traffic study upon completion and occupancy of Phase 1, for review and approval of ATTACHMENT 2
225
PA-17-03 A2
August 19, 2021

Fire
the Transportation Division. Based on the results of such a study, a more accurate traffic count could be established to determine the square footage necessary to meet i maximum threshold allowed by the General Plan.

46. Developer shall fund the design and construction of a new traffic signal and associated ADA ramps at the west project driveway on South Coast Drive identified in the proposed design features of the project and traffic study. Developer shall consult with the Transportation Services Division prior to the design and construction of the traffic signal to review location, design standards, signal equipment, operation, and aesthetics. Developer shall provide traffic signal design plans to the Transportation Services Division ae review ane approval prior to construction.

49. Comply with the requirements of the adopted California Fire Code, including the referenced standards as amended by the City of Costa Mesa.

50. A fire department site and access plan shall be submitted for review and approval.

51. Developer shall install approved fire sprinkler and fire alarm systems in accordance with the California Fire Code requirements.

52. Developer shall provide an automatic fire sprinkler system according to NFPA 13.

53. Developer shall provide an automatic fire alarm system according to NEPA 72.

54. Provide “blue dot” reflective markers on all on-site fire hydrants.

ATTACHMENT 2
226
PA-17-03 A2
August 19, 2021

55. Chanaes of use or occupancy in existing structures shall not be made unless the use or occupancy is made to comply with the requirements of the adopted California Building and Fire Codes.

56. Alternate Materials, Alternate Design, and Methods of Construction requests shall be submitted through the Building and Safety Division for assessment of code insufficiencies or performance based designs.

Police 57. Developer shall work with the Police Department in implementing security measures to the maximum extent feasible. For example, developer shall install an on-site video surveillance system that will be monitored by on-site security personnel. A final security plan shall be submitted to the Planning Division prior to opening.

ATTACHMENT 2
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August 19, 2021

ATTACHMENT 2
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PA-17-03 A2
August 19, 2021

ATTACHMENT 2
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PA-17-03 A2
August 19, 2021

“EXIT” si th its shall be clearly marked wi All ex 80
ATTACHMENT 2
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GODE REQUIREMENTS
The following list of federal, state and local laws applicable to the project has been compiled by staff for the applicant’s reference. All applicable federal, state, and local laws which are applicable to the project shall be complied with, regardless of whether they are identified herein. Any reference to “City” pertains to the City of Costa Mesa.

ATTACHMENT 2
231

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1460 Meeting Date: 12/5/2023
TITLE:

PUBLIC HEARING REGARDING THE DEVELOPMENT IMPACT FEES ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2023 AND THE TRAFFIC IMPACT FEE ANALYSIS DEPARTMENT: FINANCE AND PUBLIC WORKS DEPARTMENT
PRESENTED BY: CAROL MOLINA, FINANCE DIRECTOR / RAJA

SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: CAROL MOLINA, FINANCE DIRECTOR, (714) 754-5243 / RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR, (714) 754-5343
RECOMMENDATION:

Staff recommends the City Council:

1. Receive and file the Development Impact Fees Annual Report (Attachment 1) for the Fiscal Year ended June 30, 2023.

2. Adopt resolution (Attachment 2) continuing the citywide traffic impact fee for new development that incorporates recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include:
· Continue a traffic impact fee of $235 per Average Daily Trip (ADT) based on the Capital Improvement Projects in Attachment 4 and Active Transportation projects in the adopted Active Transportation Plan (ATP).
· Approve allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.
· Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements.
· Approve the annual accounting of the Citywide Traffic Impact Fee Program (Attachment 6).

BACKGROUND:

Pursuant to the Mitigation Fee Act (California Government Code Sections 66001 through 66009), the City Council established certain Development Impact Fees (DIFs) that must be paid by developers of property to help offset some (or all) of the cost of public facilities related to the development project. The DIFs are for Park Development Impact Fees, Drainage Impact Fees,

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File #: 23-1460 Meeting Date: 12/5/2023
development project. The DIFs are for Park Development Impact Fees, Drainage Impact Fees, Traffic Impact Fees, and Fire Systems Development Fees. The Mitigation Fee Act requires that City Council approve an annual report that provides information about the DIFs. These fees are required to be deposited into their own separate accounts or funds. The law also requires that certain findings be made in association with accumulated DIFs after the deposit into their respective account or fund.

ANALYSIS:

Reporting requirements under California Government Code 66006 specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year.

The reports must describe the fee, the amount of the fees collected, interest earned, and identification of any expenditures from those funds. The code also specifies that reports must be reviewed by the City Council at a regularly scheduled meeting not less than 15 days following release to the public. The FY2022-23 Development Impact Fee Annual Report was released for public review on November 21, 2023.

The FY 2022-23 Development Impact Fee Annual Report is attached for City Council's review and approval (Attachment 1). A summary of the fees collected and expenditures incurred in FY 2022-23 are included in the Financial Summary Report section.

Staff recommends that the City Council receive and file this Annual Report. Staff also requests the adoption of the attached resolution (Attachment 2), continuing the citywide traffic impact fee for new development in the City. The resolution incorporates the recommendations from the Traffic Impact Fee Ad Hoc Committee and staff.

Traffic Impact Fee Ad Hoc Committee - Annual Review
The Traffic Impact Fee Ad Hoc Committee and staff met on November 2, 2023 to review the traffic impact fee program and calculation. Recently completed projects, consideration of active transportation projects, and the available traffic impact fee fund balance were accounted for in this review.

Attachment 4 provides the calculation of the traffic impact fee of $231 per Average Daily Trip (ADT) based on a revised list of capital improvement projects and the inclusion of Active Transportation projects. Following a review of the fee analysis and staff input, the Ad Hoc Committee recommended to continue the current traffic impact fee of $235 per ADT with the inclusion of Active Transportation projects in the Traffic Impact Fee program. In addition, the Ad Hoc Committee recommended to continue the allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.

The Ad Hoc Committee also recommended to continue to provide a five percent (5%) reduction in automobile trips for development projects due to the implementation of the Active Transportation Plan (ATP) and an additional five percent (5%) reduction in ADT if a development proposes to implement active transportation improvements beyond typical code requirements. The improvements have to be substantial such as addition of a multipurpose trail, conversion of lower-class active bicycle facility to

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a higher-class bicycle facility, or enhanced pedestrian improvements in the vicinity of the project.

The Fiscal Year 2022-23 Traffic Impact Report (Attachment 6) depicts the opening balance, the ending balance on June 30, 2023, interest earned, revenues, expenditures, and unexpended funds from the Citywide Traffic Impact Fee Account. This attachment also shows that there are no funds unexpended or uncommitted in the account five (5) or more years after deposit and that no administrative costs have been charged to the fee account. The accounting was presented to the Committee at their meeting on November 2, 2023, and was approved.

As required by the Government Code, the updated Capital Improvement Plan (CIP) is contained in the Fiscal Year 2023-24 adopted budget and remains valid for the current traffic impact fee review.

The traffic impact fee account information, including the interest earned, shown in Attachment 6, is available for public review.

ALTERNATIVES:

The City Council may choose to reject all or part of the Annual Report as presented. California Government Code Section 66006 requires that the report be reviewed at a public meeting.

FISCAL REVIEW:

There is no fiscal impact related to this item, as this is solely the legally required annual report of the development impact fee activity for the Fiscal Year ended June 30, 2023, and traffic impact fee analysis.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this report and approves as to form.

CITY COUNCIL GOALS AND PRIORITIES:

This item is administrative in nature.

CONCLUSION:

Staff recommends the City Council:

1. Receive and file the Development Impact Fees Annual Report (Attachment 1) for the Fiscal Year ended June 30, 2023.

2. Adopt the attached resolution (Attachment 2) continuing the citywide traffic impact fee for new development that incorporates recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include:
· Continue a traffic impact fee of $235 per Average Daily Trip (ADT) based on the Capital Improvement Projects in Attachment 4 and Active Transportation projects in the adopted Active Transportation Plan (ATP).
· Approve allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.
· Approve a five percent (5%) reduction in automobile trips as a result of ATPPage 3 of 4 234
File #: 23-1460 Meeting Date: 12/5/2023
· Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements.
· Approve the annual accounting of the Citywide Traffic Impact Fee Program (Attachment 6).

235
1 DECEMBER 5 , 2023

CITY OF COSTA MESA
77 FAIR DRIVE
COSTA MESA, CA 92626
City of Costa
Mesa
FY2022-23
Development
Impact Fee
Report
ATTACHMENT 1
236

2 Table of Contents

City Council Directory ................................................................................................... 3

City Officials Directory .................................................................................................. 4

Introduction
Legal Requirements for Development Impact Fee Reporting ...................................... 5 Description of Development Impact Fees with corresponding Fee Schedules ............. 7

Development Impact Fee Report
Statement of Revenues, Expenditures and Changes in Fund Balance Summary ....... 9

Financial Summary Report and Capital Improvement Projects (CIP) Park Development Fees ............................................................................................. 10 Drainage Fees ........................................................................................................... 12 Traffic Impact Fees .................................................................................................... 13 Fire System Development Fees ................................................................................. 15 Cannabis Traffic Impact Fees .................................................................................... 16

Development Impact Project Identification
Park Development Projects ........................................................................................ 17 Drainage Projects ...................................................................................................... 18 Traffic Impact Projects ............................................................................................... 18 Fire System Development Projects ............................................................................ 18 Cannabis Traffic Impact Projects ............................................................................... 18

City Council Action and Studies
Review of the Citywide Traffic Impact Fee Program .................................................. 19 Update to the Park Impact Fees ................................................................................ 35

237

3 City Leadership

JOHN STEPHENS
MAYOR

JEFFREY HARLAN DON HARPER LOREN GAMEROS

MAYOR PRO TEM COUNCIL MEMBER COUNCIL MEMBER DISTRICT 6 DISTRICT 1 DISTRICT 2

ANDREA MARR MANUEL CHAVEZ ARLIS REYNOLDS

COUNCIL MEMBER COUNCIL MEMBER COUNCIL MEMBER DISTRICT 3 DISTRICT 4 DISTRICT 5

238

4 City Official Directory

City Manager’s Office
City Manager .............................................................. Lori Ann Farrell Harrison

Department Directors
City Attorney’s Office ............................................................... Kimberly Barlow Community Development Services .................................................. Jennifer Le Finance .......................................................................................... Carol Molina Information Technology ...................................................................... Steve Ely Parks and Community Services ..................................... . Alma Reyes (Interim) Public Services ...................................................................... Raja Sethuraman

Public Safety
Fire and Rescue ............................................................. Daniel Stefano Police .......................................................................... Ronald Lawrence

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5 Legal Requirements for Development Impact Fee Reporting

Legal Requirements for Development Impact Fee Reporting

California Government Code Section 66006 (b)

California Government Code Section 66006 (b) defines the specific reporting requirements for local agencies that impose AB 1600 DIFs on new development. Annually, for each separate fund established for the collection and expenditure of DIFs, the local agency shall, within 180 days of the close of the fiscal year, make available to the public the i nformation shown below for the most recent fiscal year.

a) A brief description of the type of fee in the account or fund. b) The amount of the fee.
c) The beginning and ending balance of the account or fund. d) The amount of the fees collected and interest earned. e) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. f) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
g) A description of each inter -fund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an inter-fund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. h) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001.

California Government Code Section 66001

For all funds established for the collection and expenditure of DIFs, California Government Code Section 66001 (d) has additional requirements. For the fifth fiscal year following the first deposit into the fund and every five years thereafter, the local agency shall make all of the following findings with respect to that portion of the fund remaining unexpended, whether committed or uncommitted:

a) Identify the purpose to which the fee is to be put.
b) Demonstrate a reasonable relationship between the fee and purpose for which it is charged.
c) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a). d) Designate the approximate dates on which the funding referred to in subparagraph (c) is expected to be deposited into the appropriate account or fund.

240

6 California Government Code Section 66002

The State of California Government Code Section 66002 states that:

a) Any local agency, which levies a fee subject to Section 66001, may adopt a capital improvement plan, which shall indicate the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the fees.

b) The capital improvement plan shall be adopted by, and shall be annually updated by, a resolution of the governing body of the local agency adopted at a noticed public hearing.

Notice of the hearing shall be given pursuant to Section 65090. In addition, mailed notice shall be given to any city or county, which may be significantly affected by the capital improvement plan. This notice shall be given no later than the date the local agency notices the public hearing pursuant to Section 65090. The information in the notice shall be not less than the information contained in the notice of public hearing and shall be given by first-class mail or personal delivery.

c) "Facility" or "improvement," as used in this section, means any of the following:

1. Public buildings, including schools and related facilities; provided that school facilities shall not be included if Senate Bill 97 of the 1987- 88 Regular Session is enacted and becomes effective on or before January 1, 1988.

2. Facilities for the storage, treatment, and distribution of nonagricultural water.

3. Facilities for the collection, treatment, reclamation, and disposal of sewage.

4. Facilities for the collection and disposal of storm waters and for flood control purposes.

5. Facilities for the generation of electricity and the distribution of gas and electricity.

6. Transportation and transit facilities, including but not limited to streets and supporting improvements, roads, overpasses, bridges, harbors, ports, airports, and related facilities.

7. Parks and recreation facilities.

8. Any other capital project identified in the capital facilities plan adopted.

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7 Description of Development Impact Fees with Corresponding Fee Schedule

Park Development Impact Fees (Quimby Act Fees)

Fee Description: This fee provides funding for additional or improved park and/or recreation facility improvements for which the need is generated by new development within the City.

Fee Schedule: The table below indicates the applicable park development fee per unit that will be applied to new residential projects based on the net increase in residential units.

Development Fee per Unit
Single-family Dwelling Unit $13,572.00
Multi-family Dwelling Unit $13,829.00
Apartment Dwelling Unit $5,000.00

Drainage Impact Fees

Fee Description: This fee provides funding for additional construction and maintenance of the City's drainage system for which the need is generated by new development or redevelopment within the City.

Fee Schedule: The table below indicates the applicable drainage impact fee per acre that will be applied to new or redeveloped projects.

Development Type Fee per Acre
Low Density Residential Use $6,283.00
Medium Density Residential Use $7,539.00
High Density Residential Use $10,052.00
Commercial / Industrial Density Residential Use $11,309.00

Traffic Impact Fees

Fee Description: This fee provides funding for additional or improved traffic signal, operation, and infrastructure improvements for which the need is generated by new or expanding development within the City.

Fee Schedule: The citywide Traffic Impact Fee is assessed on the increased number of average daily trips generated by the proposed project. The City Council adopted a fee of $235 per daily trip on November 13, 2018. On December 17, 2020, the City Council voted to continue the Traffic Impact fees at $235 per daily trip.

242

8 Fire System Development Fees

Fee Description: This fee provides funding for additional fire protection facilities, equipment, and paramedic support for which the need is generated by future development within the North Costa Mesa area. This fee is only levied against five identified developments: Home Ranch, South Coast Plaza Town Center, South Coast Metro Center, and Sakioka Farms' Lots 1 and 2.

Fee Schedule: The fee is $0.285 per square foot of new commercial, industrial or residential development.

Cannabis Traffic Impact Fees

Fee Description: This fee provides funding for additional or improved traffic signal, operation, and infrastructure improvements within the City for which the need is generated by the cannabis retail establishments.

Fee Schedule: The citywide Cannabis Traffic Impact Fee is assessed on the increased number of average daily trips generated by the proposed project. The City Council adopted a fee of $235 per daily trip on November 13, 2018. On December 17, 2020, the City Council voted to continue the Traffic Impact fees at $235 per daily trip which is the same for the Cannabis Traffic Impact Fee.

243

9 Statement of Revenues, Expenditures and Changes in Fund Balance

A summary of activities in each type of development impact fee for fiscal year ended June 30, 2023 is shown below:

Statement of Revenues, Expenditures and Changes in Fund Balance for the Fiscal Year Ended June 30, 2023*
Development Impact Fees

Description
Park
Development
Fees
Drainage
Fees
Traffic Impact
Fees
Fire System
Development
Fees
Cannabis
Traffic Impact
Fees
Revenue
Fees 158,327 76,516 601,330 432,659
Investment Earnings 33,194 22,712 60,376 6,567 2,778 Other 107,327 7,167
Revenue Total 191,520 206,555 668,873 6,567 435,436
Expense
Expenditures 934,235 273,825 485,738
Other
Transfers Out
Expense Total 934,235 273,825 485,738 0 0

Rev Over(Under) Exp (742,715) (67,270) 183,135 6,567 435,436 Begin Fund Balance 3,615,436 2,242,221 5,657,766 635,685 0 End Fund Balance 2,872,722 2,174,951 5,840,901 642,252 435,436 *Unaudited actuals

244
10 Financial Summary Reporting and CIP
S
tate law requires an identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the costs of the public improvement that was funded with fees. A summary of improvements for each Development Impact Fee is provided.

PARK DEVELOPMENT FEES (QUIMBY ACT FEES)
S
tatement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:

For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 4,657,896 2,299,373 1,049,018 766,372 1,278,941 158,327 Investment Earnings (8,310) 254,347 223,901 8,022 (100,792) 33,194 Other 106,966
Revenue Total 4,649,586 2,553,720 1,272,919 881,359 1,178,149 191,520 Expense
Expenditures 2,558,466 1,899,528 1,589,954 1,753,155 2,214,169 934,235 Other 10,810 9,735
Transfers Out 3,842
Expense Total 2,569,276 1,913,105 1,589,954 1,753,155 2,214,169 934,235 Rev Over(Under) Exp 2,080,310 640,615 (317,035) (871,796) (1,036,020) (742,715) Begin Fund Balance 3,119,361 5,199,672 5,840,286 5,523,251 4,651,456 3,615,436 End Fund Balance 5,199,672 5,840,286 5,523,251 4,651,456 3,615,436 2,872,721 *Unaudited actuals
245

11 Capital Improvement Projects (CIP) for the Last Five Years:

For the Fiscal Year Ended June 30
Capital Project 2018 2019 2020 2021 2022 2023
208 - Park Development Fees
Tanagr Pk Plygrd Equip Repl 96,786 47,220
Wilson TeWinkle Prk Bridg 18,630 4,273
Fairview Park Improvements 3,455 198,810
Pk Security Lighting Repl 11 86,983 102,249
Jack Hammett Field Upgrade 55,000 63,634 3,300 8,796 1,532,681 204,580 Fairview Pk Mstr Plan 54,854
Fairview Park Bluffs 151,406
Fairview Pk Fence Sign Trail 5,136 762
Jordan Pk Playgrnd Equip 96,384 77,371
TeWinkle Park Lakes Repairs 31,830 86,060
NCC - Library Development 2,500,000 1,430,824 1,282,483 1,427,452 225,904 Shalimar Park Improvements 6,940
Fairview Pk Mstr Plan Update 59,822
Ketchum-Libolt Park Exp 6,940
208 - Park Development Fees
Fund Total 2,558,466 1,899,528 1,285,783 1,523,232 2,007,351 596,218

Funds held past the fifth year and first deposit
Not applicable at this time. All funds were expended within the five-year timeframe to fund park improvements and/or recreation facility improvements.

Construction Commencement Date for Incomplete Improvements Not applicable at this time.

Inter-fund Transfers and Loans
No loans were disbursed during this period.

Amount of Refunds
No refunds of any of these funds were made or required in during this period.

246

12 DRAINAGE FEES

Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:

For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 113,610 268,800 898,498 433,328 348,736 76,516
Investment Earnings 9,519 57,202 78,484 2,100 (57,057) 22,712 Other 107,327
Revenue Total 123,130 326,002 976,982 435,428 291,679 206,555 Expense
Expenditures 1,101,378 56,980 194,127 593,405 145,850 273,825 Expense Total 1,101,378 56,980 194,127 593,405 145,850 273,825

Rev Over(Under) Exp (978,248) 269,022 782,855 (157,977) 145,829 (67,270) Begin Fund Balance 2,180,739 1,202,491 1,471,513 2,254,368 2,096,392 2,242,221 End Fund Balance 1,202,491 1,471,513 2,254,368 2,096,392 2,242,221 2,174,951 *Unaudited actuals

Capital Improvement Projects (CIP) for the Last Five Years:

For the Fiscal Year Ended June 30
Capital Project 2018 2019 2020 2021 2022 2023
209 - Drainage Fees Fund
Catch Basin Inserts-Various 10,886 9,966 169,750 26,727 Citywide Storm Drain Impr 740,492 56,980 184,161 332,976 108,752 206,984 Westside Storm Drain Impr 10,370 66,841
NCC - Library Development 350,000 90,679
209 - Drainage Fees Fund Total 1,101,378 56,980 194,127 593,405 145,850 273,825

Funds held past the fifth year and first deposit
Not applicable at this time. All funds were expended within the five-year timeframe to fund storm drain improvements.

Construction Commencement Date for Incomplete Improvements Not applicable at this time.

Inter-fund Transfers and Loans
No loans were disbursed during this period.

Amount of Refunds
No refunds of any of these funds were made or required in during this period.

247

13 TRAFFIC IMPACT FEES

Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:

For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 878,865 182,166 259,298 1,212,500 437,943 601,330
Investment Earnings 4,203 177,173 174,806 (9,496) (143,170) 60,376 Other 1,855 7,167
Revenue Total 883,068 359,339 434,104 1,204,859 294,773 668,873 Expense
Expenditures 1,227 67,090 220,544 404,704 127,222 485,738 Other 75,000
Expense Total 1,227 67,090 295,544 404,704 127,222 485,738

Rev Over(Under) Exp 881,841 292,249 138,560 800,155 167,552 183,135 Begin Fund Balance 3,377,409 4,259,250 4,551,499 4,690,059 5,490,214 5,657,766 End Fund Balance 4,259,250 4,551,499 4,690,059 5,490,214 5,657,766 5,840,901 *Unaudited actuals

Capital Improvement Projects (CIP) for the Last Five Years:

For the Fiscal Year Ended
Capital Projects 2018 2019 2020 2021 2022 2023
214 - Traffic Impact Fees Fund
Fairview Road/Wilson St Impr
Bicycle Racks Citywide 35,032 8,299 28,187
Hyland/MacArthur Intersct Impr 58,148 23,224
Adams at Pinecreek Imp 3,831 25,056
East 17th St. Landscape Enhanc (2,611)
Fairview Traffic Signal Sync 10,457 174,575
Baker/Placntia/19th/Victr TSSP 15,373 138,620
Sunflower Traff Signal Sync 93,407
W 17th Design Newport Westside 1,227 5,842 48,992
Newport Blvd Wide 19th to 17th 3,100 43,751 5,731 31,491 52,280 Class II and III Bicycle Proj 712 1,805 12,052 82,152 Merrimac Way Bicycle Facility 181,847 16,837
Adams Av Bicycle Facility Proj 5,715 6,832
Bicycle/Pedestrian Infra Lamp 1,976
Randolph Prkg & Pedestrin Impr 25,792 124,208
West 18th & Wilson Crosswalks 9,325 15,359
Fairview Road Improvement Proj 17,900
214 - Traffic Impact Fees Fund
Total 1,227 67,090 220,544 404,704 127,222 485,738

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14 Funds held past the fifth year and first deposit
Traffic Impact Fee funds are being held passed the fifth year and first deposit. These funds are intended to fund additional or improved traffic signal, operation, and infrastructure improvements for which the need is generated by new or expanding development within the City.

Construction Commencement Date for Incomplete Improvements Not applicable at this time.

Inter-fund Transfers and Loans
No loans were disbursed during this period.

Amount of Refunds
No refunds of any of these funds were made or required in during this period.

249

15 FIRE SYSTEM DEVELOPMENT FEES

Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:

For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 469,332
Investment Earnings 1,061 5,865 25,319 45 (15,857) 6,567 Other
Revenue Total 1,061 5,865 494,651 45 (15,857) 6,567
Expense
Expenditures 82,735
Transfers Out 125,000
Expense Total 207,735 0 0 0 0 0

Rev Over(Under) Exp (206,674) 5,865 494,651 45 (15,857) 6,567 Begin Fund Balance 357,655 150,981 156,846 651,497 651,541 635,685 End Fund Balance 150,981 156,846 651,497 651,541 635,685 642,252 *Unaudited actuals

Capital Improvement Projects (CIP) for the Last Five Years:

For the Fiscal Year Ended June 30
Capital Projects 2018 2019 2020 2021 2022 2023
218 - Fire System Dev. Fees
Corp Yard Exhaust System 82,735
218 - Fire System Dev. Fees
Fund Total 82,735 0 0 0 0 0

Funds held past the fifth year and first deposit
Fire System Development Fee funds are being held past the fifth year and first deposit. These funds are intended to fund additional fire protection facilities, equipment, and paramedic support for which the need is generated by future development within Costa Mesa.

Construction Commencement Date for Incomplete Improvements Not applicable at this time.

Inter-fund Transfers and Loans
No loans were disbursed during this period.

Amount of Refunds
No refunds of any of these funds were made or required in during this period. 250

16 CANNABIS TRAFFIC IMPACT FEES

Statement of Revenues, Expenditures and Changes in Fund Balance for the Last Five Years:

For the Fiscal Year Ended June 30
Description 2018 2019 2020 2021 2022 2023*
Revenue
Fees 432,659
Investment Earnings 2,778
Other
Revenue Total 0 0 0 0 0 435,436
Expense
Expenditures
Transfers Out
Expense Total 0 0 0 0 0 0

Rev Over(Under) Exp 435,436
Begin Fund Balance 0
End Fund Balance 0 0 0 0 0 435,436
*Unaudited actuals

Capital Improvement Projects (CIP) for the Last Five Years:

For the Fiscal Year Ended June 30
Capital Projects 2018 2019 2020 2021 2022 2023
None 0 0 0 0 0 0

Funds held past the fifth year and first deposit
These funds are intended to fund off -site transportation improvements City -wide. Financing is provided by fees charged to cannabis retail establishments.

Construction Commencement Date for Incomplete Improvements Not applicable at this time.

Inter-fund Transfers and Loans
No loans were disbursed during this period.

Amount of Refunds
No refunds of any of these funds were made or required in during this period.

251
17 Development Impact Fee Project Identification
T
he City's current, Adopted Budget 2023/24 , which includes the Five-Year Capital Improvement Plan (CIP) 2023/24 — 2027/28 can be found on the City's website at:
https://www.costamesaca.gov/home/showpublisheddocument/55579/638315291587670000 Funding of Infrastructure
The FY 2023/24 — FY 2027/28 CIP identifies all funding sources and amounts for individual projects through FY 2027/28 . The CIP is updated annually to reflect the current City's infrastructure needs. As a CIP is identified, the project is evaluated to determine the portion of the project that will service existing residents and businesses versus new development.

O
nce the determination of use is made, the percentage of use attributed to new development is then funded by the appropriate development fee based on the type of project. The percentage of use associated with existing residents or businesses are funded from other appropriate sources. Estimated construction start dates for projects are adjusted, as needed, to reflect the needs of the community.

ONGOING/NEW CAPTIAL IMPROVEMENT PROJECTS
Park Development Fees
Projects by Fund FY2023/24 - FY2027/28
208 - Park Development Fees Fund
700021 - Wilson TeWinkle Park Bridge Repairs 177,099
700027 - TeWinkle Skate Park Expansion 100,000
700054 - Westside Park Development 250,000
700080 - Park Security Lighting/Replacement 62,252
700110 - Open Space Master Plan Update 75,000
700115 - Jack Hammett Sports Complex ADA Improvements 309,263 700129 - Shalimar Park Improvements 243,060
700133 - Canyon Park Inventory Mgmt Restoration 60,000
700134 - Fairview Park Fence Sign Trail 294,103
700135 - Fairview Park Master Plan Update 254,744
700137 - TeWinkle Park Lakes Repairs 14,585
700139 – Ketchum-Libolt Park Expansion 43,060
700142 – Brentwood Park Improvements 400,000
700149 – Fairview Park – Education Hubs and Signage 90,000 700150 – Fairview Pk – Mesa Restor & Cult Resource Preservation 3,000,000 208 - Park Development Fees Fund Total 5,373,166
252
18 Drainage Fees
Projects by Fund FY2023/24 - FY2027/28
209 - Drainage Fees Fund
550008 - Citywide Catch Basin Inserts and Water Quality Improvement 95,883 550011 - Citywide Storm Drain Improvements 554,455
550022 - Westside Storm Drain Improvements 1,522,790
209 - Drainage Fees Fund Total 2,173,128
Traffic Impact Fees
Projects by Fund FY2023/24 - FY2027/28
214 - Traffic Impact Fees Fund
300129 - Harbor/Adams Intersection Improvements
300146 - Fairview Road/Wilson Street Improvements
300148 - Citywide Bicycle Rack Improvements 178,482
300174 - Adams at Pinecreek Improvements 658,566
300181 - Fairview Road Improvement Project 882,100
370010 - Mesa del Mar Multi-Model Access 100,000
370034 - Fairview Traffic Signal Synchronization 5,377
370039 - Baker/Placentia/19th/Victoria Traffic Signal Synchronization 99,125 370056 - Bear Street Traffic Signal Sync 31,000
370059 – W 19th St Wallace Av Traf Sig 192,037
450010 - Class II, III, and IV Bicycle Projects 1,103,281 450014 - Adams Avenue Bicycle Facility Project 500,000
450015 - Bicycle/Pedestrian Infrastructure Improvements 398,024 450016 - Mesa/Santa Ana Bicycle Facility Improvements 100,000 450017 - MV/Peterson Place Class II Bicycle 100,000
470002 - West 18th Street and Wilson Street Pedestrian Crossings 375,316 214 - Traffic Impact Fees Fund Total 4,723,308
Fire System Development Fees
No current projects to report.

Cannabis Traffic Impact Fees
No current projects to report.
253

19 City Council Action and Studies

The following attachments are Development Impact Fees related recent and prior Council Reviews (Traffic Impact Fees and Park Development Fees). 254
ATTACHMENT 2
Resolution No. 2023-xx Page 1 of 6

RESOLUTION NO. 2023-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,

CALIFORNIA, CONTINUING THE CITYWIDE TRAFFIC IMPACT FEE FOR NEW

DEVELOPMENT IN THE CITY OF COSTA MESA AND CONDUCTING THE RELATED

ANNUAL REVIEW OF THE CITYWIDE TRAFFIC IMPACT FEE PROGRAM AND

CAPITAL IMPROVEMENT PLAN FOR TRANSPORTATION IMPROVEMENTS

WHEREAS, California Government Code section 66000 et seq. enables cities to charge fees for transportation facilities; and
WHEREAS, Section 13-274 of the Costa Mesa Municipal Code authorizes the City Council to, by resolution, establish a development impact fee program based on the capital improvement program; and
WHEREAS, in 1993, by Resolution No. 93-43, the City Council established a traffic impact fee program and the rate of the traffic impact fee based upon a Traffic Impact Fee Study; and
WHEREAS, each year since 1993, the City has continued the traffic impact fee program; and
WHEREAS, on November 15, 2022, the City Council established a traffic impact fee of Two Hundred Thirty-Five Dollars ($235.00) per Average Daily Trip (ADT) based upon a Traffic Impact Fee Study completed in 2018; and
WHEREAS, California Government Code section 66001(d) requires the City to make specified findings every five years with respect to any portion of the traffic impact fees collected that remain unexpended in its account, including (1) identifying the purpose to which the fee is to be put; (2) demonstrating a reasonable relationship between the fee and the purpose for which it is charged; (3) identifying all sources and amounts of funding anticipated to complete financing of incomplete improvements; and (4) designating approximate dates on which the anticipated funding is expected to be deposited into the appropriate account; and
WHEREAS, California Government Code section 66002(b) further requires a separate annual review and update of the City’s capital improvement plan for improvements to be paid for by traffic impact fees; and 255
Resolution No. 2023-xx Page 2 of 6
WHEREAS, California Government Code section 66006(b) requires the City to make available to the public within 180 days of the last day of the fisc al year certain information, including but not limited to, a description of the type of fee, the amount of the fee, the amount of fees collected and the interest earned thereon, identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, identification of an approximate date by which the construction of the public improvement will commence if the City determines that sufficient funds have been collected to complete financing of an incomplete public improvement , and the beginning and ending balance of the traffic impact fee account or fund for the previous fiscal year; and
WHEREAS, the 2016 General Plan requires the City to maintain a tra ffic impact fee for improvements to the Master Plan of Streets and Highways and that the City review and update the fees on a regular basis; and
WHEREAS, pursuant to the 2016 General Plan and the Costa Mesa Municipal Code, the City has elected to conduct the review of traffic impact fees required by California Government Code section 66001(d) on an annual basis in conjunction with its review of the capital improvement plan required by California Government Code section 66002(b) and the annual accounting required by California Government Code section 66006(b)(1); and
WHEREAS, the City reviewed and updated the capital improvement plan on June 20, 2023 in connection with its Measure M2 reporting; and WHEREAS, a primary purpose of this resolution is to continue the traffic impact fee based on the 2018 Traffic Impact Fee Study and to enable the City to continue the traffic impact fee; and
WHEREAS, the traffic impact fee is necessary because new development increases the need for transportation/circulation facilities in the City of Costa Mesa not only during peak periods, but throughout the day , and the City transportation/circulation system will be burdened by the demands of carrying vehicles of a larger number of persons and cargo due to new commercial, industrial, and residential uses; and WHEREAS, the 2015-2035 General Plan as well as Environmental Impact Report No. 1049 indicate that development of new commercial, industrial and residential uses is 256
Resolution No. 2023-xx Page 3 of 6
expected to exceed current commercial, industrial and residential uses and, accordingly, the City transportation/circulation systems will need to be increased in capacity to carry the increase in the number of vehicles due to new commercial, industrial and residential uses; and
WHEREAS, the Public Services Department has conducted an audit of the accounts for the traffic impact fee program for the fiscal year ending June 30, 2023, which is attached hereto as Exhibit “A” and incorporated herein; and WHEREAS, pursuant to California Government Code section 66006, the audit was available for public inspection and review at least fifteen (15) days prior to the City Council review of the audit on December 5, 2023 and notice was mailed to all interested parties on record at least fifteen (15) days prior to the public hearing held on December 5, 2023; and
WHEREAS, the City Council conducted a public hearing on December 5, 2023 , received testimony and evidence from interested parties in the City of Costa Mesa , and has evaluated justification for renewal of the traffic impact fee given economic and social factors, as well as average fees charged by surrounding cities.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS, DETERMINES, AND RESOLVES AS FOLLOWS:

Section 1. The City Council hereby finds that:
a. The foregoing recitals are true and correct and are incorporated herein by reference.
b. The purpose of the traffic impact fee is to fund transportation/circulation improvements including active transportation improvements within the City of Costa Mesa which are directly related to the incr emental traffic/vehicle burden imposed upon the City transportation/circulation system by the development of new commercial, industrial and residential uses. c. The fee will be used to fund transportation and circulation improvements within the City of Costa Mesa.
d. There is a reasonable relationship between the traffic impact fee’s use and the development projects on which the fee is imposed because the transportation/circulation facilities funded by the fee are needed to 257
Resolution No. 2023-xx Page 4 of 6
accommodate the incremental new traffic/vehicle burdens generated by the development of new commercial, industrial and residential uses upon which the fee is imposed.
e. There is a reasonable relationship between the need for the transportation/circulation facilities and the development of new commercial, industrial and residential projects upon which the fee is imposed because the new development projects paying the fee will receive a direct benefit from the transportation/circulation facilities funded by the fee; the transportation/circulation facilities funded by the fee will increase traffic/vehicle circulation capacity on streets and highways directly burdened by the increase in traffic/vehicles generated by new development projects upon which the fee is charged; the cost of transportation/circulation facilities attributed to existing deficiencies, existing land uses and population, excess and reserve capacity, and regional transportation needs have been excluded from the fee calculation, and such costs are not included in the fee to be paid by the development.
f. There is no portion of the fees deposited into the traffic impact fee fund that remains unexpended more than five years after collection. g. The capital improvement plan is adequate to provide the facilities for which the traffic impact fee is charged and does not need to be amended. h. The audit by the Public Services Department set forth in Exhibit “A” accurately reflects the balance of the traffic impact fee account on the fees collected, the interest thereon, and other income and amou nt of expenditures and refunds of the traffic impact fee made by the City of Costa Mesa during the prior fiscal year.

Section 2. The City Council of the City of Costa Mesa hereby renews the traffic impact fee and establishes traffic impact fee regulations as follows:
a. The traffic impact fee shall be a fee of $235.00 per each new average daily vehicle trip end generated by all new commercial, industrial and residential developments. To encourage active transportation in Costa Mesa, s taff shall provide a five percent (5%) reduction in ADT development trips for 258
Resolution No. 2023-xx Page 5 of 6
active transportation project benefits and may provide an additional five percent (5%) reduction in ADT development trips for a development project which proposes to implement active transport ation improvements beyond those which would ordinarily be required by the City as a condition of approval for such development project.
b. The traffic impact fee established pursuant to this resolution shall be collected and administered in accordance with all requirements of California Government Code section 66000 et seq., the Costa Mesa Municipal Code and prior resolutions of the City Council.
c. There shall be no limitation on the amount of traffic impact fees which may be allocated toward active transportation projects.
d. Staff may allocate u p to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.

Section 3 . The City Council of the City of Costa Mesa hereby approves the updated comprehensive transportation/circulation system capital improvement plan as identified at the June 20, 202 3 City Council meeting pursuant to Government Code section 66002.

PASSED AND ADOPTED this 5th day of December, 2023.

____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

____________________________ ____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney 259
ATTACHMENT 2
Resolution No. 2023-xx Page 6 of 6

THIS PAGE IS RESERVED FOR CITY CLERK’S OFFICE

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss

CITY OF COSTA MESA )

I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Reso lution No. 2023-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 5th day of December, 2023, by the following roll call vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 5th day of December, 2023.

________________________
Brenda Green, City Clerk

260
ATTACHMENT 3

CITYWIDE TRAFFIC IMPACT FEE ANNUAL REVIEW - REPORT

Recommendation:

Staff recommends the City Council adopt the proposed resolution, continuing the citywide traffic impact fee for new development in the City of Costa Mesa and conducting the related annual review of the citywide traffic impact fee program and capital improvement plan for transportation improvements (Attachment 2). The resolution incorporates the recommendations from the Traffic Impact Fee Ad Hoc Committee and staff, which include:

1. Continue a traffic impact fee of $235 per Average Daily Trip (ADT) based on th e Capital Improvement Projects in Attachment 4 and Active Transportation projects in the adopted Active Transportation Plan (ATP).

2. Approve allocation of up to ten percent (10%) of traffic impact fees towards traffic signal synchronization projects.

3. Approve a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements.

4. Approve the annual accounting of the Citywide Traffic Impact Fee Program.

Background
Pursuant to California Government Code Section 66000, et seq. and the Costa Mesa Municipal Code, a traffic impact fee study is required by the City to establ ish a basis for the imposition of Citywide traffic impact fees on new and expanding developments within the City. The purpose of the fee is to fund the necessary transportation/circulation improvements, which are related directly to the incremental traffic impacts imposed on the City’s transportation system by the development of new and/or changing commercial, industrial, and residential uses as permitted by the General Plan. The fee also maintains compliance with the eligibility requirements of the Orange County Transportation Authority’s (OCTA) Renewed Measure “M2” Program (Measure “M2”).

The City Council has reviewed the Citywide Traffic Impact Fee Program each year since the fee program was first adopted in 1993. The City Council, in July 1993, also approved the formation of an Ad Hoc Committee consisting of representatives from various stakeholder groups to work with staff on all aspects related to the revision and updating of traffic impact fees.
261
ATTACHMENT 3
The City Council subsequently appointed an Ad Hoc Co mmittee consisting of members representing large and small developers, the Chamber of Commerce, citizens -at-large, as well as members representing the City Council and the Planning Commission, to assist staff in the development and review of the traffic impact fee.

The current Ad Hoc Committee members and their representation are as follows:

Jason Kensey (Chair) At Large Representative
George Sakioka (Vice Chair) Major Developers’ Representative Steve Brahs Small Developers’ Representative
Matt Eimers At Large Representative
David Haithcock Chamber of Commerce

City Council Liaisons:

Council Member Don Harper
Council Member Arlis Reynolds

Planning Commission Liaison:

Commissioner Jonathan Zich

The City Council, in June 2012, authorized a comprehensive review of the City’s General Plan, including the Land Use and Circulation Elements. The General Plan was completed and finalized in 2016.

The last major update of the Traffic Impact Fee Study was completed in November 2018.

The update took into account the most recent land use and circulation information contained in the 2016 General Plan update. The proposed General Plan circulation improvements identified in the new transportation model form the basis for the traffic impact fee update. A revised traffic impact fee calculation was conducted taking into account the 2016 General Plan and updated traffic analysis model. The estimated costs for various improvements were reviewed and updated using the most recent construction cost data. The Ad Hoc Committee, together with staff, reviewed all conditions and analyzed different trip fee scenarios. Several variations of improvement options were considered, and it was determined that trip fees in the range of $176 per ADT through $476 per ADT could be justified.

On November 15, 2022, the City Council adopted Resolution No. 22-65, approving a traffic impact fee of $235 per Average Daily Trip (ADT) to be continued with the inclusion of Active Transportation projects, selecting a fee from the calculated range of between $176 and $476 per ADT. The City Council also approved up to ten percent (10%) of traffic impact fees being allocated toward traffic signal synchronization projects. In addition, City Council approved a five percent (5%) reduction in automobile trips as a result of ATP implementation and an additional five percent (5%) reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements. 262
ATTACHMENT 3
A chronology of actions taken by the City Council on the Citywide Traffic Impact Fee Program between the years of 1993 and 2022 is included in Attachment 5.

Traffic Impact Fee Ad Hoc Committee – Annual Review
The Traffic Impact Fee Ad Hoc Committee and staff met on November 2, 2023 to review the traffic impact fee program and calculation. Recently completed projects, consideration of active transportation projects, and the available traffic impact fee fund balance were accounted for in this review.

Attachment 4 provides the calculation of the traffic impact fee of $231 per ADT based on a revised list of capital improvement projects and the inclusion of Active Transportation projects. Following a review of the fee analysis and staff input, the Ad Hoc Committee recommended to continue the current traffic impact fee of $23 5 per Average Daily Trip (ADT) with the inclusion of Active Transportation projects in the Traffic Impact Fee program. In addition, the Ad Hoc Committee recommended to continue the allocation of up to ten percent (10%) of traffic impact fees towards traff ic signal synchronization projects.

The Ad Hoc Committee also recommended to continue to provide a five percent (5%) reduction in automobile trips for development projects due to the implementation of the Active Transportation Plan (ATP) and an additional five percent (5%) reduction in ADT if a development proposes to implement active transportation improvements beyond typical code requirements. The improvements have to be substantial such as addition of a multipurpose trail, conversion of lower-class active bicycle facility to a higher-class bicycle facility, or enhanced pedestrian improvements in the vicinity of the project.

Annual Accounting of the Traffic Impact Fee:

California Government Code Section 66006(b) requires an annual review and accounting of the Citywide Traffic Impact Fee Program. Section 66001(d) requires that the City make specified findings every five years relating to any portion of the traffic impact fees collected that remain unexpended in its account. The City has elected to con duct the review of traffic impact fees required by California Government Code Section 66001(d) on an annual basis in conjunction with its review of the capital improvement plan required by California Government Code Section 66002(b) and the annual accounti ng required by California Government Code Section 66006(b). Attachment 6 depicts the opening balance, the ending balance on June 30, 2023, interest earned, revenues, expenditures, and unexpended funds from the Citywide Traffic Impact Fee Account. This at tachment also shows that there are no funds unexpended or uncommitted in the account five (5) or more years after deposit and that no administrative costs have been charged to the fee account. The accounting was presented to the Committee at their meeting on November 2, 2023, and was approved.

As required by the Government Code, the updated Capital Improvement Plan (CIP) is contained in the Fiscal Year 202 3-24 adopted budget and remains valid for the current 263
ATTACHMENT 3
traffic impact fee review. The traffic impact fee account information, including the interest earned, shown in Attachment 6, is available for public review.

264
Costa Mesa Traffic Impact Fee Update
Roadway and Intersection Improvement Cost Allocation
Local Regional Total Local Regional Total
Future 17th (Orange to Tustin) Widen from 4 lanes to 6 lanes Future 17th (Pomona to Bluff) Widen from 2 lanes to 4 lanes Future Baker (Bear to Red Hill) Widen from 4 lanes to 6 lanes $8,652,358 5,120 2,786 7,906 $5,603,348 $3,049,009 $8,652,358 Future Bear (I-405 Overcrossing) Widen from 4 lanes to 6 lanes Future Del Mar/University (Elden to Santa Ana) Widen from 2 lanes to 4 lanes Future Wilson (Fairview to College) Widen from 2 lanes to 4 lanes Future Wilson (Newport to Fairview) Widen from 2 lanes to 4 lanes Future Wilson (Harbor to Placentia) Widen from 2 lanes to 4 lanes $8,652,358 5,120 2,786 7,906 $5,603,348 $3,049,009 $8,652,358 Future 2. Harbor & Sunflower Add WBR and EBR $1,097,280 4,982 2,859 7,841 $697,188 $400,092 $1,097,280 Future 9. Bristol & Sunflower Add NBL $1,356,880 7,038 4,344 11,382 $839,019 $517,860 $1,356,880 Future 17. Hyland & South Coast/I-405 NB On-Ramp Add WBT $1,035,928 1,901 604 2,505 $786,147 $249,781 $1,035,928 Future 18. Harbor & South Coast Add EBR $2,003,760 7,830 3,157 10,987 $1,428,000 $575,760 $2,003,760 Future 30. Hyland & MacArthur Add NBL and NBR $314,326 2,003 1,797 3,800 $165,683 $148,643 $314,326 Future 42. Bristol & I-405 NB Ramps Add WBR $1,080,010 13,117 5,615 18,732 $756,272 $323,738 $1,080,010 Future 44. Harbor & Gisler Add SBR and EBL $5,874,084 9,893 4,259 14,152 $4,106,297 $1,767,787 $5,874,084 Future 49. Bristol & Paularino Add WBL $360,252 6,710 1,690 8,400 $287,773 $72,479 $360,252 Future 51. SR-55 SB Ramps & Paularino Add SBR $496,476 1,845 2,631 4,476 $204,647 $291,829 $496,476 Future 52. SR-55 NB Ramps & Paularino Add WBR $771,300 1,649 2,504 4,153 $306,254 $465,046 $771,300 Future 65. SR-55 SB Ramps & Baker Add SBR $750,420 3,477 2,446 5,923 $440,522 $309,898 $750,420 Future 66. SR-55 NB Ramps & Baker Add NBL and EBL $1,644,390 2,728 2,001 4,729 $948,593 $695,797 $1,644,390 Future 84. Harbor & Adams Add NBL and NBR $7,244,820 10,600 3,803 14,403 $5,331,882 $1,912,938 $7,244,820 Future 101. Newport NB & Del Mar Add WBR $157,770 2,934 2,406 5,340 $86,685 $71,085 $157,770 Future 129. Newport NB & 22nd Add WBT and NBL $18,000 3,332 2,625 5,957 $10,068 $7,932 $18,000 Future 134. Placentia & 19th Add SBR $463,536 6,409 1,423 7,832 $379,316 $84,220 $463,536 Future 151. Superior & 17th Add WBL and NBR $795,438 7,133 2,160 9,293 $610,552 $184,886 $795,438 Future 152. Newport & 17th Add NBR $533,610 10,202 5,079 15,281 $356,252 $177,358 $533,610 Future 156. Irvine & 17th Addd SBR and EBR $952,614 3,760 1,777 5,537 $646,890 $305,724 $952,614 $26,950,892 107,543 53,180 160,723 $18,388,039 $8,562,854 $26,950,892 $35,603,250 112,663 55,966 168,629 $23,991,387 $11,611,863 $35,603,250 Traffic Impact Fee Funds $1,117,593
Local Cost Allocation with above subtracted $22,873,794 Active Transportation Projects $24,579,860
Total Local Share Costs and Active Transportation Projects $47,453,654 227,767
$231
Cost Allocation
CIP FY Location Improvement
Estimated
Cost
New Daily Trip Ends
Citywide Fee calculation including ATP projects and 10% reduction in ADT trips

ROADWAYS
Sub-Total

INTERSECTIONS
Sub-Total
TOTAL
New Costa Mesa Trips Generated at General Plan Buildout ATTACHMENT 4
265
Costa Mesa Traffic Impact Fee Update
Roadway and Intersection Improvement Cost Allocation
Local Regional Total Local Regional Total
Cost Allocation
CIP FY Location Improvement
Estimated
Cost
New Daily Trip Ends

ROADWAY AND INTERSECTION IMPROVEMENTS IN GENERAL PLAN AND EXCLUDED FROM TRIP FEE PROGRAM Newport (19th to 17th) Widen SB from 3 lanes to 4 lanes $11,160,000 17th (Orange to Tustin) Widen from 4 lanes to 6 lanes $18,456,138 17th (Pomona to Bluff) Widen from 2 lanes to 4 lanes $8,922,780 Bear (I-405 Overcrossing) Widen from 4 lanes to 6 lanes $6,489,864 Del Mar/University (Elden to Santa Ana) Widen from 2 lanes to 4 lanes $41,965,380 Wilson (Fairview to College) Widen from 2 lanes to 4 lanes $18,070,500 Wilson (Newport to Fairview) Widen from 2 lanes to 4 lanes $3,030,904 Wilson (Harbor to Placentia) Widen from 2 lanes to 4 lanes $30,666,420 140. Newport Boulevard & 19th Street Add NBT and free SBR $28,695,034 TOTAL $167,457,019
266

CITY OF COSTA MESA

CHRONOLOGY OF TRAFFIC IMPACT FEE ACTIONS
Date Adopted Resolution
Number
Area of
Benefit
Applicable Fees
7-June-1993 93-43 Citywide $228 per daily trip end based on the exclusion of all freeway improvements 20-June-1994 94-59 Citywide $228 per daily trip end based on the exclusion of all freeway improvements 1-May-1995 95-35 Citywide $200 per daily trip end based on the inclusion of freeway improvements 17-June-1996 96-57 Citywide $200 per daily trip end based on the inclusion of freeway improvements 20-January-1997 97-15 Newport
Bl. Spec.

Plan Area
Incentive program for developments in Newport Boulevard Specific Plan Area Trip fees range from $33 to $108 per ADT based on project-related conditions. 16-June-1997 97-51 Citywide $150 per daily trip end based on the inclusion of freeway improvements 15-June-1998 98-64 Citywide $150 per daily trip end based on the inclusion of freeway improvements 4-January-1999 99-2 Citywide Incentive program for first 100 trips 0-25 ADT - $0
25-5
0 ADT - $50
50-75 ADT - $75
75-100 ADT - $100
>100 ADT - $150
7-June-1999 99-35 Citywide $149 per daily trip end based on inclusion of freeway improvements 7-June-1999 99-36 Citywide Incentive program for the first 100 trips 19-June-2000 00-52 District 1
Dis
trict 2
$195 per daily trip end (areas north of I-405 and SR-73 Freeways) and incentive program for the first 100 trips
$149 per daily trip end (areas south of I-405 and SR-73 Freeways) and incentive program for the first 100 trips
Fees based on inclusion of freeway improvements
4-June-2001 01-34 District 1
Dis
trict 2
$195 per daily trip end (areas north of I-405 and SR-73 Freeways) and incentive program for the first 100 trips
$149 per daily trip end (areas south of I-405 and SR-73 Freeways) and incentive program for the first 100 trips
Fees based on inclusion of freeway improvements
15-April-2002 02-27 Citywide Traffic Impact Fee Study Update $177 per daily trip end and incentive program for the first 100 trips of the entire site 6-October-2003 03-62 Citywide $177 per daily trip end and incentive program for the first 100 trips of the entire site 4-October-2004 04-59 Citywide $177 per daily trip end and incentive program for the first 100 trips of the entire site Suspension of incentive program for Newport Boulevard Specific Plan Area ATTACHMENT 5
267

CITY OF COSTA MESA

CHRONOLOGY OF TRAFFIC IMPACT FEE ACTIONS
Date Adopted Resolution
Number
Area of
Benefit
Applicable Fees
20-September-2005 05-70 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 17-October-2006 06-85 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 16-October-2007 07-77 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site Exemption of preschool and daycare facilities from traffic impact fee program (consider as part of exempt school facilities)
21-October-2008 08-81 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 20-October-2009 09-67 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 19-October-2010 10-70 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 18-October-2011 11-42 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 20-November-2012 12-73 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 11-November-2013 13-54 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 18-November-2014 14-73 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 1-December-2015 15-66 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 3-January-2017 17-02 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 21-November-2017 17-76 Citywide $181 per daily trip end and incentive program for the first 100 trips of the entire site 14-November-2018 18-79 Citywide $235 per daily trip end, up to 10% for signal synchronization projects, and up to 5% for active transportation projects. Terminate incentive program for new developments on an incremental basis for the first 100 trips.
17-December-2019 19-83 Citywide $235 per daily trip end, inclusion of ATP projects, up to 10% for signal synchronization projects, and no limitation on the amount of traffic impact fees allocated toward active transportation projects. Provide 5% reduction in ADT development trips for active transportation project benefits and may provide an additional 5% reduction in ADT development trips for a development project that proposes to implement active transportation improvements beyond those which would ordinarily be required by the City as a condition of approval for such development project.
17-November-2020 20-60 Citywide $235 per daily trip end, inclusion of ATP projects, up to 10% for signal synchronization projects. Provide 5% reduction in ADT development trips for active transportation and may provide additional 5% reduction in ADT development trips for development implementing active transportation improvements beyond those required as condition of approval. 7-December-2021 21-48 Citywide $235 per daily trip end, inclusion of ATP projects, up to 10% for signal synchronization projects. Provide 5% reduction in ADT development trips with conditions as approved in 2020. 15-November-2022 22-65 Citywide $235 per daily trip end, inclusion of ATP projects, up to 10% for signal synchronization projects. Provide 5% reduction in ADT development trips with conditions as approved in 2021.

268
FISCAL YEAR 2022-2023
Amount of Traffic Impact Fee $235
Beginning Fund Balance July 1, 2022 $5,657,766

1. Revenues
Traffic Impact Fees $601,330
Investment Earnings 98,890
(38,513)
Misc / Other Reimbursement $7,167
Revenue Subtotal $668,873

2. Expenditures $485,738
Percent of
project funded by
TIF in FY 22-23
Newport Boulevard Improvements (19th to 17th) $52,280 FY 22-23 11.1% Fairview Road Improvement Project $17,900 FY 22-23 1.5% Bicycle Racks Citywide $28,187 FY 22-23 11.3%
Class II and III Bicycle Projects $82,152 FY 22-23 8.1% Bicycle/ Pedestrian Infrastructure Improvement $1,976 FY 22-23 0.4% Adams at Pinecreek Intersection Improvements $25,056 FY 22-23 3.0% Baker/ Placentia/ 19th/ Victoria TSSP $138,620 FY 22-23 6.3% Randolph Ave Parking and Pedestrian Improvement $124,208 FY 22-23 29.5% West 18th & Wilson Crosswalks $15,359 FY 22-23 3.8%

3. Refunds $0
Amount of funds expended or
uncommitted after 5 years $0

4. Administrative Costs $0

5. Fund Balance as of June 30, 2023 $5,840,901

6. Project Appropriations $4,723,308
Bicycle Racks Citywide
Class II and III Bicycle Projects
Adams at Pinecreek Intersection Improvements
Fairview Traffic Signal Synchronization
Bear Traffic Signal Synchronization
Mesa Del Mar Multimodal Access
Baker/ Placentia/ 19th/ Victoria TSSP
Bicycle/ Pedestrian Infrastructure Improvement
Mesa Drive / Santa Ana Ave Bicycle Facility Improvement Mesa Verde Drive East/ Peterson Place Class II Bicycle Facility West 18th & Wilson Crosswalks
Fairview Road Improvement Project
West 19th Wallace Ave Traffic Signal
Adams Ave Bicycle Facility Project

CITY OF COSTA MESA

CITYWIDE TRAFFIC IMPACT FEE ACCOUNT
Fund Balance as of June 30, 2023
GASB 31 Fair Market Value adjustment on Investment
ATTACHMENT 6
269

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 23-1463 Meeting Date: 12/5/2023
TITLE:

FIRST READING OF AN ORDINANCE TO AMEND TITLE 13 (PLANNING, ZONING, AND DEVELOPMENT) OF THE COSTA MESA MUNICIPAL CODE TO MODIFY THE CITY’SOUTDOOR DINING PROVISIONS (CODE AMENDMENT PCTY-23-0002)
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/

PLANNING DIVISION
PRESENTED BY: CAITLYN CURLEY, ASSISTANT PLANNER
CONTACT INFORMATION: CAITLYN CURLEY, 714-754-5692
RECOMMENDATION:

Staff recommends the City Council:

1. Find that the project is exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15061(b)(3) (“General Rule”); and

2. Introduce for first reading, by title only, Ordinance No. 2023-XX amending Title 13 of the Costa Mesa Municipal Code (Planning, Zoning, and Development) to modify the City’soutdoor dining provisions.