Costa Mesa City Council
June 18, 2024

City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 24-230 Meeting Date: 06/04/2024
TITLE: FIRST READING OF ORDINANCES APPROVING DEVELOPMENT AGREEMENT (DA -20- 02), REZONE (R -20-01), AND SPECIFIC PLAN (SP -20-01), AND ADOPTION OF RESOLUTION

AMENDING CERTAIN CONDITIONS OF APPROVAL FOR THE ONE METRO WEST PROJECT LOCATED AT 1683 SUNFLOWER AVENUE
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVI CES DEPARTMENT/PLANNING

DIVISION
PRESENTED BY: AMBER GREGG, CONTRACT PLANNER
CONTACT INFORMATION: AMBER GREGG CONTRACT PLANNER, 714-754-5617 RECOMMENDATION:

Staff recommends the City Council:

1. Find that the proposed amendments are in substantial conformance with the Final Environmental Impact Report (EIR) for the One Metro West project ( State Clearing House No. 2019050014 ), including a mitigation monitoring program and statement of overriding considerations, which was certified by the City Council on May 4, 2021, and that no further environmental review under CEQA is required pursuant to CEQA Guidelines Section 15162.

2. Introduce for first reading, by title only, Ordinance No. 2024-XX approving Development Agreement 20-02, modifying payment of impact fees and community benefits funding from one year to five years and clarifying the Agreement’s effective date.

3. Introduce for first reading, by title only, Ordinance No. 2024-XX approving Rezone 20-01.

4. Introduce for first reading, by title only, Ordinance No. 2024-XX approving Specific Plan 20-01.

5. Adopt Resolution 2024 -XX amending certain conditions of approval of Resolution 2021 -55 regarding the artwork on Building A along the I-405 Freeway.

BACKGROUND:

The subject property , known as One Metro West, is 15.23 acres in size and is located at 1683 Sunflower Avenue. The site is bounded by Sunflower Avenue to the north, the South Coast Collection (SOCO) retail center to the east, the Interstate 405 Freeway (I-405 Freeway) to the south, and industrial and logistics uses to the west (zoned Planned Development Industrial). The project site is currently occupied by office, warehouse, and manufacturing uses within an approximately 345,000-square-foot, one-story industrial building.

ATTACHMENT 4
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Exhibit 1 – One Metro West Project Vicinity Map

On July 20, 2021, the City Council approved the “One Metro West” mixed -use development which includes 1,057 apartment units, 6,000 square feet of ground floor retail space, a 25,000 square-foot office building, 1.5 -acres of publicly accessible open space, and various offsite improvements along Sunflower Avenue (e.g., new bicycle lanes and landscaped medians).

When the Council approved the final project entitlements, the project was conditioned on complying with Article 22, Chapter IX of the Zoning Code. Article 22, “An Ordinance to give the People of Costa Mesa Control of Their Future,” was added to the Zoning Code by “Measure Y,” which was approved by the voters in 2016. Article 22 requires a vote of the Costa Mesa electorate to approve major changes in allowable land use, as defined. A stated intent of Measure Y is to allow maximum public participation in major land use and zoning changes proposed in Costa Mesa.

The specific project components that previously required a vote of the electorate included the request for a General Plan Amendment (GPA), rezone, specific plan, and because more than 40 residential units were proposed (Costa Mesa Municipal Code Section 13-200.102.) In addition, the project was not subject to any of the listed exceptions to Article 22 at the time of City Council approval in 2021 (CMMC Section 13-200.106). Pursuant to Article 22, the development was conditionally approved by the City Council such that the project entitlements would not become effective until approved by the voters.

In 2022, following City Council approval of the project entitlements, Measure K was passed by the voters.

Measure K amended Article 22 to allow for the development of housing in specific commercial and Project Site
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industrial areas while keeping residential neighborhoods intact and revitalizing commercial corridors.

Similar to the surrounding properties located north of the 405 freeway, t he One Metro West project is located within a mapped area that is exempted from Article 22’s voter approval requirement (CMMC Section 13-200.106 G). However, the ordinances implementing the project were conditioned to not be effective until approval by a vote of the electorate . Therefore, since a vote of the electorate has not occurred, the ordinances implementing the One Metro West development must be adopted as revised to be effective.

The approved project components and entitlements include:

 Final Environmental Impact Report (State Clearinghouse No. 2019050014);  General Plan Amendment (GP -20-01): Amending the Land Use Element to change the General Plan land use designation of the property from Industrial Park (IP) to High Density Residential (HDR) to allow residential uses and establish a site-specific maximum density of 80 dwelling units (du) per acre and site-specific maximum building height of 98 feet;  Rezone (R-20-01): When in effect, c hanging the zone of the project site from Industrial Park (MP) to Planned Development Residential – High Density (PDR-HD) to allow for a mixed -use development with residential and complementary commercial uses;  Specific Plan (SP-20-01): When in effect, establishing site-specific zoning regulations such as development standards and design guidelines;
 Master Plan (PA-19-19): When in effect, the project site plans and architectural details including floor plans, building elevations, landscaping and renderings/streetscape views;  Tentative Tract Map No. 19015 (T-19-01): When in effect, subdividing the site into five parcels including establishing the right to a future airspace subdivision for condominium purposes as well as dedication of an easement to the City for publ ic access and use of the 1.5 -acre open space area; and
 Development Agreement (DA-20-02): When in effect, a greement between the applicant and the City pursuant to California Government Code Sections 65864 , et seq. that guarantees project approvals for a period of 25 years from its effective date, in exchange for public benefits including, but not limited to, 106 affordable housing units that will remain affordable for no less than 40 years. The required project affordab le housing units include 67 very-low income units and 39 low-income units.

Requested Amendments

On December 4, 2023, the applicant’s representative, Brent Stoll of Rose Equities, submitted a letter requesting several modifications . The proposed amendments do not modify the development plans .

Specifically, the applicant is requesting to amend the following:

 Development Agreement: Amend the timing of payment of impact fees and community benefits funding;
 Ordinance Modifications: Modify the Ordinances to be consistent with Article 22 by reflecting the project effective date as the date of the City Council’s adoption of the attached Ordinances; and 977

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 Project Condition of Modifications: Amend certain project conditions specific to the required timing of the artwork design submittal to the City and the final approval body for the proposed artwork (Conditions 9 and 66 of Resolution 2021-55).

Refer to the applicant’s letter in Attachment 5 for a detailed description of the applicant’s requests.

Public Comments

Three comment letters were received prior to the Planning Commission meeting. The letters expressed concerns about the effective date of the applications, the timing of the project, traffic congestion, density, height, noise, light, air quality, and costs to the City. At the Planning Commission meeting , four individuals spoke in opposition of the project. In addition to the previously noted concerns, speakers commented on the terms of the development agreement.

Planning Commission Recommendation

On May 13, 2024, the Planning Commission considered the request and reviewed the proposed modifications. After considering staff’s presentation, the applicant’s presentation and public comments, the Planning Commission deliberated and voted five to one to recommend that the City Council:

1. Introduce for first reading an ordinance amending Development Agreement DA -20-02 regarding the timing of payment for impact fees and community benefit funds , which would become effective upon adoption;

2. Introduce for first reading project Ordinances clarifying the project’s effective approval date contained in Rezone 20-01 and Specific Plan 20-01; and

3. Approving modifications to City Council Resolution 2021 -55 clarifying certain conditions of approval regarding the artwork on Building A along the I-405 Freeway.

Regarding the requested modifications to the conditions or approval pertaining to the art ins tallation, the Planning Commission did not support the Arts Commission acting as the final reviewing body, and they did not support the removal of the vertical landscaping requirement. Additional information regarding the Planning Commission’s recommendation is provided later in this report. Concerning the Development Agreement, the Planning Commission questioned the three percent (3%) interest rate, noting they felt it was low, but ultimately deferred to the City Council to determine the appropriate financial aspects of the project. The May 13, 2024, Planning Commission report and video are linked below:

May 13, 2024, Planning Commission Staff Report (also provided as Attachment 10) https://costamesa.legistar.com/View.ashx?M=F&ID=12920298&GUID=9D328997-1746-430C-9978- B2BABB3790F9

May 13, 2024, Planning Commission Video
https://costamesa.granicus.com/player/clip/4129?view_id=14&redirect=true

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ANALYSIS:

Development Agreement Amendment

The One Metro West Development Agreement provides for a number of public benefits for the City, including but not limited to open space, a community center, affordable housing, and funding. The applicant is committed to providing these benefits; however, i s requesting modifications to the timing of payment to certain required fees. Currently, the Development Agreement requires all fees ($16,532,789) to be paid in Phase I - at the time of issuance of the first building permit.

The applicant has stated the r esulting upfront costs are significant and challenging and instead proposes to pay two of the required fees (Development Impact fees and Economic Recovery and Community Enhancement) in two installments, with interest, over a five -year period (see the below Table 1 and Table 2). The Public Safety fee and Community Infrastructure fee will continue to be paid with the first building permit.

TABLE 1 – Approved and Proposed Development Agreement Language Requested to be Modified

The City’s Finance Department has reviewed the applicant’s requested payment modifications and determined that the requested five-year payment plan with a three percent (3%) interest rate retains the fund's “net present value” by recovering the potential interest and/or inflation monetary reductions that may result by the requested payment delays. The result is a total payment of $17,881,474 by the end of the five -year term. If the proposed payment plan is approved, the resulting payments are as follows:

APPROVED DEVELOPMENT AGREEMENT PROPOSED DEVELOPMENT AGREEMENT Development Impact Fees (DIF):
 All DIFs paid with issuance of the first building permit:
 Park Fee: $5,285,000
 Open Space Fee: $3,068,460
 Traffic Impact Fee: $1,598,000
 Fire Fee: $504,783
 Drainage Fee: $76,546
 Total DIF = $10,532,789
Development Impact Fees (DIF) – REQUEST
CHANGE:
 Two Payment Installments plus 3% interest rate.
 First payment received with the issuance of the first building permit (Year 1), second and final payment
received Year 5.
 Total DIF = $11,403,652 (includes 3% interest rate)
Funding for Economic Recovery and Community
Enhancement:
 $3 million for projects related to economic
sustainability and recovery
 Paid prior to issuance of first building permit
Funding for Economic Recovery and
Community Enhancement – REQUEST
CHANGE:

One Payment received in Year 5 plus 3% interest
rate.
 Total = $3,477,822 (includes 3% interest rate)
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TABLE 2 – Proposed Fee Total

FEE TYPE TOTAL FEES DUE
(Per DA)

YEAR FEE PAID TOTAL FEES
(Paid at the end of
5 years)
YEAR 1 YEAR 5**
Includes 3% Interest
Public Safety* $2,000,000 $2,000,000 - $2,000,000
Comm Infrastructure* $1,000,000 $1,000,000 - $1,000,000 Economic Recovery $3,000,000 - $3,477,822 $3,477,822
Dev Impact $10,532,789 $5,065,089 $6,338,563 $11,403,652 TOTAL $16,532,789 $8,065,089 $9,816,385 $17,881,474
*Fee and timing of payment are unchanged from the Original Development Agreement. **Interest starts accruing after Year 1 so the remaining balance of the fees paid Year 5 includes the 3% interest rate.

Project Effective Date

As discussed above, t he One Metro West development entitlements included three Ordinances that are not yet in effect. Ordinances Nos. 2021 -11, 2021 -12, and 2021 -13 each contain the following language regarding the effective date: “This ordinance shall become effective following approval of the Project by the electorate at the next regular municipal election or at a special election funded by the applicant”. With the passage of Measure K, and subsequent amendm ents to Article 22, the applicant is now requesting that the project Ordinances be revised to indicate that the project effective date is the 31st day after Ordinance adoption.

Artwork Conditions of Approval

The One Metro West project includes the development of a parking structure located adjacent to the I- 405 freeway. To enhance the façade of the parking structure as viewed from the freeway, the project includes a public art display. The design of the art installment was not known at the time of City Council review and therefore, the project entitlements, when effective, included conditions pertaining to the required review and approval of the art piece. The below Exhibit 1 from the approved project Master Plan shows an example of where a potential art installation would occur.

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EXHIBIT 1 – Example Art Installation

The following are two conditions in the project Resolution conditions of approval (Resolution 2021-55) addressing the public art requirement:
 COA No. 9 – The final design of the public art display on Building A’s parking structure façade along the I-405 Freeway, which shall incorporate vertical landscaping, shall be subject to review and final approval by the Planning Commission. The Cultural Arts Committee (CAC) may first review the proposed freeway façade design and make recommendations to the Planning Commission. No public art display visible along the I-405 Freeway shall be installed without prior review by and approval from the Planning Commission.

 COA No. 66 – Prior to the issuance of the first building permit for the proposed project, the owner/developer would be required to submit a Design Plan for the Building “A” parking elevation (façade) along the I-405 Freeway for review by the Planning Division and approval by the City’s Cultural Arts Committee. All architectural treatments would exclude the use of moving, flashing, or otherwise visually distracting elements or materials that are highly reflec tive or generate noise. [PPP-AES-1]

As conditioned, the applicant believes that requiring the submittal of the art design prior to the issuance of the “first building permit”, along with the requirement to incorporate vertical landscaping, is “restrictive and unnecessarily constrains the creative team to a shortened timeframe when the building to which the art display will be attached won’t be ready to receive the installation until many months later”. As such, the applicant is requesting the following amendments to the conditions:
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1. Remove Condition No. 9. Instead, the applicant is requesting that the “final design” be subject to the Planning Division and the Arts Commission approval, pursuant to Condition of Approval No. 66. The applicant request would also remove the requirement to install vertical landscaping; and

2. Amend Condition of Approval No. 66 to modify the art design plan submittal date to prior to certificate of occupancy for Building “A”, instead of prior to the “first building permit.”

As indicated above, the project is currently conditioned for the art display to be reviewed by the Cultural Arts Committee with final approval by the Planning Commission (COA No. 9). However, in 2022, the City Council replaced the Cultural Arts Committee with t he Arts Commission. Therefore, it is appropriate to amend the project conditions to replace the Arts Committee language with Arts Commission. However, although the Planning Commission emphasized that the Arts Commission would take the lead on the actual art, they believed the final approval should remain with the Planning Commission as they would focus on the architectural components of the installation.

The Planning Commission did not recommend modifying the intent of Condition of Approval No. 66 as it’s a mitigation measure and the language is taken directly from the Final EIR. Further, the Planning Commission is not in support of the applicant’s request to delay the submittal of the design plan for the elevation and art to “certificate of occupancy”, as it would potentially diminish a cohesive art and elevation design, as the applicant’s request would constrain a future art design to a previously constructed facade. However, the Planning Commission is supportive of clarifying the language to indicate that the design plan for the art installation could be submitted at the first structural building permit. In summary, the Planning Commission recommendation results in both conditions remaining with certain minor edits.

Lastly, following the Planning Commission meeting, the applicant submitted a letter requesting the language pertaining to the vertical landscaping be modified, rather than requesting it be eliminated (Attachment 6). If the City Council is supportive of the request, the following language could be added to Condition No. 9 “ shall incorporate vertical landscaping where appropriate as determined by the reviewing bodies…”. This additional language would enable the Arts and Planning Commission to add vertical l andscaping where they believe it is beneficial and appropriate to do so. To review the modified Conditions please review Exhibit D of the Attached Resolution.

ENVIRONMENTAL DETERMINATION:

Pursuant to Section 15162 of the State CEQA Guidelines, the project was reviewed and found to be consistent with the One Metro West Environmental Impact Report (EIR) (State Clearinghouse No. 2019050014), which was certified on May 4, 2021, by the City Council of the City of Costa Mesa (Resolution No. 2021-54). Pursuant to Section 15162 of the Guidelines, no subsequent environmental review is warranted for the project because there are no substantial changes to the project in that there are no modifications to the approved project plans , or required mitigation measures that would relate to the mitigation of a project environmental effect , and no new information of previously unknown environmental effects.

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ALTERNATIVES:

The City Council has the following alternatives:

1. Give first reading. The City Council may give first reading to the draft Ordinances.

2. Give first reading with modifications. The City Council may modify the draft Ordinances and give first reading.

3. Not adopt the proposed changes. The City Council may choose to not adopt the proposed amendments.

4. Continue the Ordinances review to a date certain. The City Council may continue the item to a date certain with direction for staff to return with additional information, changes and/or clarifications.

FISCAL REVIEW:

The City’s Fina nce Department has reviewed the applicant’s requested payment modifications and determined that the requested five-year payment plan with a three percent (3%) interest rate, in the amount of $1,348,685, retains the fund's “net present value” by recovering the potential interest and/or inflation monetary reductions that may result by the requested payment delays.

The result is a total payment of $17,881,474 at the end of the five -year term compared to the current Development Agreement of $16,532,789, which requires all fees to be paid in Phase I - at the time of issuance of the first building permit.

LEGAL REVIEW:

The draft Ordinances and staff report have been prepared in conjunction with and reviewed by the City Attorney’s Office.

PUBLIC NOTICE:

Pursuant to Title 13, Section 13 -29(d), of the Costa Mesa Municipal Code, three types of public notification have been completed no less than 10 days prior to the date of the public hearing:

1. Mailed notice. A public notice was mailed to all property owners and occupants within a 500-foot radius of the project site. The required notice radius is measured from the external boundaries of the property.

2. On-site posting. A public notice was posted on each street frontage of the project site.

3. Newspaper publication. A public notice was published once in the Daily Pilot newspaper.

Public comments received prior to the June 4, 2024 City Council meeting, may be viewed at this link:

CITY OF COSTA MESA - Calendar (legistar.com).

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CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Council Goal to diversify, stabilize, and increase housing to reflect the community needs in that the project contributes to helping the City meet its City’s 6th Cycle RHNA allocations, including affordable housing allocation. The project includes 1,057 units within a mixed - use multi-family residential development. The project provides 10 percent of the project dwelling units (minimum of 106 units) as affordable units to low- and very-low-income households.

CONCLUSION:

The proposed amendments do not modify the development plans ; rather, they modify the timing of implementing the project while ensuring the City receives the agreed -upon public benefits. The amendments to the Development Agreement from a single fee payment to a two -payment plan over five years with a 3% interest rate, is intended to assist the applicant in meeting the financial commitments to the City while ensuring the City retains the full value of the development fees. Lastly, the applicant proposed language modifications to the Ordinances would be consistent with Article 22 of the CMMC . Based on the above, staff and the Planning Commission recommend approval of the proposed amendments, as stated in this Report, and per the attached Ordinances and Resolution.

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ATTACHMENT 5

Track Changes Development Agreement 20-02

Legend: New text is shown in underlined bold, and the deleted text is shown in strikethrough.

Note: The document covenants have been renumbered to account for added text and or sections.

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DEVELOPMENT AGREEMENT NO. 20-02

A DEVELOPMENT AGREEMENT BETWEEN

CITY OF COSTA MESA
and

INTERNATIONAL ASSET MANAGEMENT HOLDING GROUP, LLC

COSTA MESA SUNFLOWER, LLC

Approved July 20, 2021, by Ordinance No. 2021-11
Approved June 18, 2024, by Ordinance No. 2024-05

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DEVELOPMENT AGREEMENT NO. 20-02
This Development Agreement (hereinafter “Agreement”) is entered into as of this ___ day of _______, 202_ by and between the City of Costa Mesa, California (hereinafter “CITY”), and International Asset Management Holding Group, Costa Mesa Sunflower, LLC, a California Limited Liability Company (hereinafter “OWNER”):

RECITALS
WHEREAS, CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to Section 65864, et seq. of the Government Code; and
WHEREAS, This Agreement constitutes a current exercise of CITY’s police powers to provide predictability to OWNER in the development approval process by vesting the permitted uses, density, intensity of use, and timing and phasing of development consistent with the Development Plan in exchange for OWNER’s commitment to provide significant public benefits to CITY as set forth in Section 4, below.

WHEREAS, OWNER has requested CITY to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of CITY; and WHEREAS, the best interests of the citizens of the CITY and the public health, safety and welfare will be served by entering into this Agreement; and
WHEREAS, the City Council hereby finds and determines that this Agreement is of major significance because it will enable the development of a mixed -use project with residential, commercial, creative office and open space uses and provide the CITY with additional funds that could be used for CITY facilities and will therefore implement numerous general plan and other public policies of the CITY; and WHEREAS, the provision by OWNER of these aforementioned public benefits allows the CITY to realize significant economic, and social benefits; and WHEREAS, the physical effects, if any, of the Project and this Agreement have been analyzed pursuant to the California Environmental Quality Act (“CEQA”) (Pub. Res. Code section 21000 et seq.); and
WHEREAS, this Agreement and the Project are consistent with the Costa Mesa General Plan, as amended, and any specific plan, as amended, applicable thereto; and WHEREAS, all actions taken and approvals given by CITY have been duly taken or approved in accordance with all appli cable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and
WHEREAS, development of the Property in accordance with this Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY; and WHEREAS, this Agreement will eliminate uncertainty in planning and provide for the orderly development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the developme nt of the Project, and generally serve the purposes for which development agreements under Section 65864, et seq. of the Government Code are intended. 987

COVENANTS
NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS AND EXHIBITS.

1.1 Definitions. The following terms when used in this Agreement shall be defined as follows:

1.1.1 “Agreement” means this Development Agreement.

1.1.2 “CITY” means the City of Costa Mesa, a California municipal corporation.

1.1.3 “City Council” means the duly elected city council of the City of Costa Mesa.

1.1.4 “Commencement Date” means the date the Term of this Agreement commences.

1.1.5 “Construction Date” means the date the first building permit is issued.

1.1.6 “Development” means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to:
grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. “Development” does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof.

1.1.7 “Development Approvals” means all permits and other entitlements for use subject to approval or issuance by CITY in connection with development of the Property including, but not limited to:
(a) general plan, general plan amendments, specific plans and specific plan amendments;
(b) tentative and final subdivision and parcel maps;
(c) conditional use permits and master plans;
(d) zoning, zoning map amendments, and zoning text amendments; and, (e) grading and building permits.

1.1.8 “Development Exaction” means any requirement of CITY in connection with or pursuant to any Land Use Regulation or Development Approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests.

1.1.9 “Development Impact Fee” a monetary exaction other than a tax or special assessment, whether established for a broad class of proj ects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost 988

of public facilities related to the development project, but does not include park “in lieu” fees specified in Government Code Section 66477, fees for processing applications for governmental regulatory actions or approvals, or fees collected under dev elopment agreements adopted pursuant to Article 2.5 of the Government Code (commencing with Section 65864) of Chapter 4.

1.1.10 “Development Plan” means the plan for development of the Prop erty as set forth in the vested entitlements listed in Exhibit “C”.
(a) “Director” means the Director of the City’s Development Services Department, including his or her designee.

1.1.11 “Effective Date ” means the date the ordinance approving and authorizing this Agreement becomes effective.

1.1.12 "Interest Charge” means the interest payment app lied to deferred Development Exaction and Development Impact Fees.

1.1.13 “Interest Rate” means the rate of interest, three percent (3%) per year, compounded annually, used to calculate the Interest Charge.

1.1.14 “Land Use Regulations” means all ordinances, resolutions, codes, rules, regulations and official policies of CITY governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to th e development of the Property. “ Land Use Regulations” does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing:
(a) the conduct of businesses, professions, and occupations; (b) taxes (special or general) and assessments;
(c) the control and abatement of nuisances;
(d) the granting of encroachment permits and the conveyance of rights and interests that provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain.

1.1.15 “OWNER” means the persons and entities listed as OWNER on page 1 of thi s Agreement and their successors in interest to all or any part of the Property.

1.1.16 “Mortgagee” means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device lender, and their successors and assigns.

1.1.17 “Project” means the dev elopment of the Property contemplated by the Development Plan as such Plan may be further defined, enhanced or modified pursuant to the provisions of this Agreement.

1.1.18 “Property” means the real property described on Exhibit “A” and shown on Exhibit “B” to this Agreement.
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1.1.19 “Public Benefit” refers to those benefits provided to the CITY and the community by OWNER pursuant to Section 4 below.

1.1.20 “Reservation of Rights” means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 3.3 of this Agreement.

1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement:

Exhibit “A” – Legal Description of the Property.

Exhibit “B” – Map showing Property and its location.

Exhibit “C” – Development Plan.

Exhibit “D” – Development Impact Fees

2. GENERAL PROVISIONS.

2.1 Binding Effect of Agreement . The Property is hereby made subject to this Agreement.

Development of the Property is hereby fully vested and authorized and shall be carried out in substantial accordance with the terms of the Development Plan and this Agreement.

2.2 Ownership of Property. OWNER represents and covenants that it is the owner of the fee simple title to, or has an equitable interest in, the Property or a portion thereof.

2.3 City Council Findings. The City Council finds that:

2.3.1 This Agreement is consistent with the CITY’s General Plan, as amended.

2.3.2 This Agreement ensures a desirable and functional community environment, provides effective and efficient development of public facilities, infrastructure, and services appropriate for the development of the Project and enhances effective utilization of resources within the CITY.

2.3.3 This Agreement provides public benefits to the City.

2.3.4 This Agreement strengthens the public planning process, encourages private participation in comprehensive planning and reduces costs of development and government.

2.3.5 The best in terests of the citizens of the CITY and the public health, safety, and welfare will be served by entering into this Agreement.

2.4 Term. The term of this Agreement shall commence on the date (the “Commencement Date”) that is the Effective Date, and shall continue for a period of twenty five (25) years thereafter, unless this term is modified or extended pursuant to the provisions of this Agreement. Thereafter, the OWNER shall have no vested right under this Agreement, regardless of whether or not OWNER has paid any Development Impact Fee.
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2.5 Assignment.

2.5.1 Right to Assign . OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410, et seq.) to any person, partnership, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, duties and obligations arising under or from this Agreement and be made in strict compliance with the following conditions precedent:
(a) No sale, transfer or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property. (b) Concurrent with any such sale, transfer or assignment, OWNER shall notify CITY, in writing, of such sale, transfer or assignment and shall provide CITY with an executed agreement (“Assignment and Assumption Agreement”), in a form reasonably acceptable to CITY, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties, obligations, agreements, covenants, waivers of OWNER under this Agreement, including, without limitation, the covenants not to sue and waivers contained in Sections

7.2 and 8.4 hereof.

Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute a default by OWNER under this Agreement. Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by Paragraph (b) of this Subsection 2.5.1, the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed.

2.5.2 Release of Transferring Owner. Notwithstanding any sale, transfer or assignment, a transferring OWNER shall continue to be obligated under this Agreement with respect to the transferred Property or any transferred portion thereof, unless such transferring OWNER is given a release in writing by CITY, which release shall be provided by CITY upon the full satisfaction by such transferring OWNER of the following conditions:
(a) OWNER no longer has a legal or equitable interest in all or any part of the Property subject to the transfer.
(b) OWNER is not then in default under this Agreement.
(c) OWNER has provided CITY with the notice and executed agreement required under Paragraph (b) of Subsection 2.5.1 above. (d) The purchaser, transferee or assignee provides CITY with security equivalent to any security previously provided by OWNER to secure performance of its obligations hereunder.

2.5.3 Subsequent Assignment. Any subsequent sale, t ransfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section.

2.5.4 Utilities. The Project shall be connected to all utilities necessary to provide adequate wat er, sewer, gas, electric, and other utility service to the Project, prior to the issuance of a certificate of occupancy for any portion of the Project. 991

2.5.5 Sale to Public and Completion of Construction. The provisions of Subsection 2.5.1 shall not apply to the sale or lease (for a period longer than one year) of any lot or condominium that has been finally subdivided and is individually (and not in "bulk") sold or leased to a member of the public or other ultimate user. This Agreement shall terminate with respect to any lot /condominium and such lot/condominium shall be released and no longer be subject to this Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions:
(a) The lot/condominium has been finally subdivided and individually (and not in "bulk") sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and
(b) A certificate of occupancy has been issued for a building on the lot/condominium, and the fees for such lot set forth in this Agreement have been paid.

2.6 Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by written consent of all parties in the manner provided for in G overnment Code Section 65868 . This provision shall not limit any remedy of CITY or OWNER as provided by this Agreement.

2.7 Termination. This Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events:
(a) Expiration of the stated term of this Agreement as set forth in Section 2.4. (b) Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance approving this Agreement.
(c) Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits and acceptance by CITY or applicable public agency of all required dedications.

Termination of this Agreement shall not constitute termination of any other land use entitlements approved for the Property. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provis ions of this Agreement that has occurred prior to such termination or with respect to any obligations that are specifically set forth as surviving this Agreement. Upon such termination, any Development Impact Fees paid by OWNER to CITY for residential units on which construction has not yet begun shall be refunded to OWNER by CITY.

2.8 Notices.
(a) As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. (b) All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) on the date of delivery shown in the records of the telegraph company after transmission by telegraph to the recipient named below. All notices shall be addressed as follows:
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If to CITY:

City of Costa Mesa
77 Fair Drive
Costa Mesa, CA 92627
(714) 754-5245
Attn: City Manager
Copy to:

Jones & Mayer
3777 N Harbor Blvd.

Fullerton, CA
(714) 446-1400
Attn: Kimberly Hall Barlow
If to OWNER:

Rose Equities, as agent for International Asset Management Holding Group, Costa Mesa Sunflower, LLC
8383 Wilshire Boulevard, Suite 632
Beverly Hills, CA 90211
Attn: Brent Stoll
Telephone: (323) 782-4300
Copy to:

Rutan & Tucker, LLP
611 Anton Blvd., Suite 1400
Costa Mesa, CA 92694
Attn: John A. Ramirez
Telephone: (714) 662-4610
(c) Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.

3. DEVELOPMENT OF THE PROPERTY.

3.1 Rights to Develop . Subject to the terms of this Agreement including the Reservation of Rights, OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, this Agreement. Except as expressly provided otherwise herein, the Project shall remain subject to all Land Use Regulations and Development Approvals in effect on the Effective Date that are required to complete the Project as contemplated by the Development Plan. Except as otherwise provided in this Agreement, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Land Use Regulations and Deve lopment Approvals in effect on the Effective Date or , if consented to by OWNER, those subsequently adopted or amended . OWNER shall comply with all mitigation measures required to be undertaken pursuant to any document prepared in compliance with the California Environmental Quality Act with respect to the Project. 993

3.2 Effect of Agreement on Land Use Regulations . Except as otherwise provided under the terms of this Agreement including the Reservation of Rights, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to development of the Property s hall be the Land Use Regulations and Development Approvals in effect on the Effective Date . In connection with any subsequently adopted Development Approvals and except as specifically provided otherwise herein, CITY may exercise its discretion in accorda nce with the Land Use Regulations then in effect, as provided by this Agreement, including, but not limited to, the Reservation of Rights. CITY shall accept for processing, review and action all applications for subsequent development approvals, and such applications shall be processed expeditiously.

3.3 Reservation of Rights.

3.3.1 Limitations, Reservations and Exceptions . Notwithstanding any other provision of this Agreement, the following regulations shall apply to the development of the Property:
(a) Processing fees and charges of every kind and nature imposed by CITY to cover the estimated actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued. (b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure. (c) Regulations, policies and rules governing engineering and construction standards and specifications applicable to public and private improvements, including, without limitation, all uniform codes adopted by the City and any local amendments to those codes adopted by the CITY, including, without limitation, the CITY's Building Code, Plumbing Code, Mechanical Code, Electrical Code, and Grading Ordinance.
(d) Regulations imposing Development Exactions; provided, however, that no such subsequently adopted Development Exaction shall be applicable to development of the Property unless such Development Exaction is applied uniformly to development, either throughout the CITY or within a defined area of benefit which includes the Property. No such subsequently adopted Development Exaction shall apply if its application to the Property would physically prevent development of the Property for the uses and to the density or intensity of development set forth in the Development Plan. In the event any such subsequently adopted Development Exaction fulfills the same purposes, in whole or in part, as the fees set forth in Section 4 of this Agreement, CITY shall allow a credit against such subsequently adopted Development Exaction for the fees paid under Section 4 of this Agreement to the extent such fees fulfill the same purposes.
(e) Regulations that may be in material conflict with this Agreement but that are reasonably necessary to protect the residents of the project or the immediate community from a condition perilous to their health or safety. To the extent possible, any such regulations shall be applied and construed so as to provide OWNER with the rights and assurances provided under this Agreement. (f) Regulations that are not in material conflict with this Agreement or the Development Plan. Any regulation, whether adopted by initiative or otherwise, limiting the rate or timing of development of the Property shall be deemed to materially conflict with the Development Plan and shall therefore not be applicable to the development of the Property. 994

(g) Regulations that are in material conflict with the Development Plan; provided OWNER has given written consent to the application of such regulations to development of that Property in which the OWNER has a legal or equitable interest. (h) Regulations that impose, levy, alter or amend fees, charges, or Land Use Regulations relating to consumers or end users, including, without limitation, trash can placement, service charges and limitations on vehicle parking.
(i) Regulations of other public agencies, including Development Impact Fees adopted or imposed by such other public agencies, although collected by CITY.

3.3.2 Subsequent Development Approvals. This Agreement shall not prevent CITY, in acting on subsequent development approvals and to the same extent it would otherwise be authorized to do so absent this Agreement, from applying subsequently adopted or amended Land Use Regulations that do not materially conflict with this Agreement and do not impose increased costs on OWNER.

3.3.3 Modification or Suspension by State or Federal Law . In the event that State, County or Federal laws or regulations, en acted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce.

3.4 Regulation by Other Public Agencies . It is acknowledged by the parties that other public agencies not within the control of CITY may possess authority to regulate aspects of the development of the Property separately from or jointly with CITY and this Agreement does not limit the authority of such other public agencies.

3.5 Timing of Development . Because the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, 37 Cal. 3d 465 (1984), that the failure of the parties in that case to provide for the timing of development resulted in a later -adopted initiative restricting the timing of development to prevail over the parties’ agreement, it is the specific intent of the Parties to provide for the timing of the Project in this Agreement. To do so, the Parties acknowledge and provide that Owner shall have the right, but not the obligation, to complete the Project in such order, at such rate, at such times, and in as many development phases and sub-phases as Owner deems appropriate in its sole subjective business judgment.

3.6 Conditions, Covenants and Restrictions. Owner shall have the ability to reserve and record such covenants, conditions, and restrictions (CC&Rs) against the Property as Owner deems appropriate, in its sole and absolute discretion. Such CC&Rs may not conflict with this Agreement or the General Plan.

Before recording any CC&Rs, Owner shall provide a copy of the CC&Rs to the City for review and approval by the City Attorney. The City Attorney’s review shall be limited to determining if the CC&Rs substantially comply with this Agreement. Within thirty (30) days after receiving a copy of the proposed CC&Rs from Owner, the City Attorney shall provide Owner with either (i) a statement that the CC&Rs comply with this Agreement (“CC&R Approval”) or (ii) written comments identifying each aspect of the CC&Rs which the City Attorney believes not to be in compliance with this Agreement (a “Statement of Non-Compliance”). If the City Attorney fails to provide Owner with either CC&R Approval or a Statement of Non-Compliance within thirty (30) days following a written request by Owner, City shall be deemed to have approved the CC&Rs and Owner may record the CC&Rs against the Property. If the City Attorney provides a Statement of Non-Compliance, Owner shall have thirty (30) days in which to respond to the 995

Statement of Non-Compliance. Upon submittal of Owner’s response, the procedure described above for the initial submittal and City Attorney review of proposed CC&Rs shall again be followed. This procedure shall be followed until Owner either (1) receives CC&R Approval, (2) submits the compliance issues to binding arbitration pursuant to the rules of the American Arbitration Association, (3) files an action for declaratory relief in Orange County Superior Court seeking a judicial determination of the compliance of the proposed CC&Rs, or (4) an agreement is otherwise reached between the Parties allowing for the recording of the CC&Rs. The CC&Rs may run with the land and bind Owner ’s successors and assigns.

Except as provided above, any dispute between the Parties regarding the City’s approval or rejection of the CC&Rs shall be subject to immediate and binding arbitration pursuant to the rules of the American Arbitration Association.

4. PROJECT BENEFITS & COMMITMENTS

4.1 Public Benefits. The Project will serve to redevelop an industrial site, will provide on -site infrastructure upgrades; and will provide additional housing opportunities to residents of the City. In addition, the Project will improve the City’s open space and recreational facilities by providing the following:

4.1.1 Public Open Space . The Project will include the construction, ongoing maintenance and management of a 1.5-acre passive open space area that will be made available t o the general public through dedication of a perpetual public access easement to the CITY, which easement shall run with the land in perpetuity and be recorded against the Property in a form and manner approved by the CITY;

4.1.2 Community Center . The Project will also include construction, ongoing maintenance and management of a 1,500-square-foot community room located in Building B that will be made available for use to the CITY at no cost and to the general public subject to the same cost and schedule availability applicable to Project residents (subject to commercially reasonable rules regarding access, insurance requirements, security, etc.,);

4.1.3 Sunflower Avenue Improvements. The Project will include off-site improvements to Sunflower Avenue that would include, but not be limited to, wider pedestrian sidewalks, street furniture, lighting, wayfinding and public art, pedestrian signal, pedestrian and bike crossings, improved bicycle lanes (beyond the Class II facilities required along the Project frontage) with identification and separation from vehicles, new landscaped street median pockets, and striped on-street parking along the south side of Sunflower Avenue;

4.1.4 Maintenance of Off-Site Improvements. The CITY will maintain pavement, curb and gutter; the OWNER is to maintain offsite landscaping, irrigation and other features;

4.1.5 Advancement of Development Impact Fees . OWNER shall pay all development impact fees identified in Section 4.3 to the CITY , fees shall be paid in two installments with deferred fees subject to a three percent (3%) interest rate commencing on the Effective Date of this Agreement.

The first payment shall be received with the issuance of the first building permit (Year 1), the second and final payment received no later than the earlier of ei ther five years from the date of the first issuance building permit (“Construction Date”) or final inspection approval for the project’s last residential unit prior to the issuance of the first building permit;

4.1.6 Funding for Public Safety. prior to issuance of first building permit OWNER shall pay to CITY the sum of two million dollars ($2,000,000.00) to be used, in the City’s sole and absolute discretion, to enhance the operations of the CITY’s Police and Fire departments, including, but not limited 996

to updates to the firing range, replacement Fire apparatus, and other public safety related projects and/or expenses;

4.1.7 Funding for Community Infrastructure Improvements . Prior to issuance of first building permit OWNER shall pay to CITY the sum of one million dollars ($1,000,000.00) to be used, in the City’s sole and absolute discretion, to be used toward City-wide roadway and trail improvements (e.g.

Adams Avenue improvements and Citywide bike trail improvements);

4.1.8 Economic Recovery and Community Enhancement Fund. prior to issuance of first building permit No later than the earlier of either five years from the date of the first issuance of building permit “Construction Date”, or final inspection approval for the project’s last residential unit, the OWNER shall pay to CITY the sum of three million dollars ( $3,000,000.00) plus the Interest Charge, being a three percent (3%) interest rate commencing on the Effective Date of this Agreement, to be used by the City, in its sole and absolute discretion, to assist community enhancement programs and projects related to economic sustainability and recovery, and/or to support essential governmental functions impacted during states of emergency and/or recovery therefrom, and/or other community enhancement efforts such as park and open space acquisition, rehabilitation, refurbishment or enhancement (e.g. Shalimar Community Center, Ketchum-Libolt park improvements, etc.).

4.1.9 Gisler Avenue/Garfield Avenue Bridge . OWNER agrees to support CITY’s objections to and actions to remove the planned Gisler/Garfield Avenue Santa Ana River crossing from the OCTA’s Master Plan of Arterial Highways (“OCMPAH”).

4.2 Affordable Housing. It is the intent of CITY to consider and adopt a citywide affordable housing program to require the inclusion of affordable housing, or fees in-lieu thereof, in conjunction with all new residential development. The Project shall provide one hundred six (106) of its units at rates that are affordable to lower-income families; of the total units, sixty-seven (67) units shall be reserved for very low-income and thirty-nine (39) units for low-income tenants. The Project shall not satisfy this requirement by payment of fees in-lieu thereof. The provisions of this Section 4.2 shall continue to apply in the event of a condominium conversion.

Affordable units shall be deed restricted in a form approved by the Director and maintained in for a period of not less than forty (40) years from the date of the last certificate of occupancy of the Project at the affordability levels described in this section. Such units shall be evenly distributed throughout the Project and shall be identical to all other similarly sized units at the Project in terms of design, construction, access and OWNER provided amenities. Construction of affordable units will be proportional throughout the development of the Project, such that a proportional share of affordable units will be included in each phase of development, i.e., if the first phase of the Project is 25% of the total residential units, then approximately 25% of the total affordable units must be completed in that first phase, etc. In addition, the sizes of the affordable units shall be proportionate to the sizes of all other uni ts within the Project, i.e., if the Project is comprised of 40% one -bedroom, 50% two -bedroom and 10% three -bedroom, then the bedroom count for the affordable units shall be similarly allocated.

If OWNER determines to record a Final Tract Map and convert the apartment units to condominium units, and notwithstanding any provision of Section 2.5.5 of this Agreement to the contrary, Owner shall either: maintain the residential rental units as rental units at the then current income and affordability levels described in this section; market for sale and thereafter sell the units based on the then current income and affordability levels described in this section; or, if applicable, relocate any and all tenants residing in affordable units under the terms imposed by applicable law and/or the citywide affordable housing program in existence at the time of relocation and sell the former rental units at the then current income and affordability levels described in this section.
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4.3 Development Impact Fees . Unless specifie d below, the OWNER shall pay all development impact fees identified in this section, and further detailed in Exhibit D, to the CITY.

Fees shall be paid in two installments, Year 1 and by the end of Year 5, with deferred fees subject to a 3% interest rate , from the Effective Date hereof . The first payment shall be received with the issuance of the first building permit (Year 1), the second and final payment received no later than the earlier of either five years from the date of the first issuance of building permit (“Construction Date”) or final inspection approval for the project’s last residential unit, whichever first occurs.

4.4 Parkland Impact Fee. Project will be subject to the park impact fee for apartment units at $5,000.00 per unit and shall be paid to the CITY prior to the issuance of the first building permit . The project includes a subdivision for condominium purposes that OWNER indicates may or may not be exercised. Should the OWNER determine to record a Final Tract Map and convert the apart ment units to condominium units, OWNER shall pay the difference in fees between the initial $5,000.00 per unit park impact fee and the fee in place at the time of Map recordation for condominium units. The Tentative Tract Map shall remain valid for the ter m of this agreement and expire coterminous with this agreement if not exercised.

4.4.1 Traffic Impact Fee . The Project will be subject to the traffic impact fee for all additional vehicle trips generated by the Project at the rate in place at the time of approv al of the Project (currently two hundred thirty -five dollars ( $235.00) per additional vehicle trip) and shall be paid to the CITY prior to the issuance of the first building permit. The Project will generate a total net increase of six thousand eight hundred (6,800) vehicle trips.

4.4.2 Open Space and Public Park Impact Fee (Measure Z). The Project is subject to the Open Space and Public Park Impact Fee (also known as Measure Z) at the fee established by Resolution of the City Council at the time of issuance of the first building permit up to $1.50 per square foot. The fee shall be paid to the CITY prior to the issuance of the first building permit.

4.4.3 Fire Protection System Development Impact Fee. The intent of the parties is that the Project shall be subject to t he most current Fire Protection System Development Impact Fee.

Accordingly, the Project is subject to a Fire Protection System Development Impact fee in an amount calculated to be the equivalent of the North Costa Mesa Fire Fee study; provided, however, t hat if a new citywide Fire Protection System Development Impact Fee study is adopted after issuance of first building permit, the Project shall then be subject to this new fee.

4.4.4 Time of Payment. Except as described in Subsection 4.3, the fees required shall be paid to CITY as specified in Exhibit D. All Development Impact Fees required shall be paid to CITY in accordance with the terms of the implementing ordinance(s), as detailed in Exhibit D, and according to the following schedule:
(i) for Building A, prior to the issuance of the first building permit; (ii) for Building B, Building C and the Office Building, the earlier of the end of Year 5, plus the three percent (3%) Interest Charge commencing on the Effective Date of this Agreement, following the Construction Date, or approval of the project’s last unit.

4.5 Dedication of On-Site Easements and Rights of Way. OWNER shall dedicate to CITY all on-site rights of way and easements deemed necessary for public improvements, in CITY's sole discretion, within 15 days of receipt of written demand from CITY.
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5. FINANCING OF IMPROVEMENTS. If deemed appropriate by CITY, CITY and OWNER shall cooperate in the formation of any special assessment district, community facilities district or alternate financing mechanism to pay for the construction and/or maintenance and operation of public or private improvements required as part of the Development Plan and/or payment of any Development Impact Fees.

Without limiting the generality of the foregoing, for the purposes of this para graph, included within the definition of public improvements are street improvements, sewer improvements, drainage improvements, water improvements, other utility improvements, park improvements, trail improvements, pedestrian or bicycle improvements and open space. To the extent any such district or other financing entity is formed and sells bonds in order to finance such reimbursements, OWNER may be reimbursed to the extent that OWNER spends funds or dedicates land for the establishment of public improve ments. Notwithstanding the foregoing, it is acknowledged and agreed by the parties that nothing contained in this Agreement shall be construed as requiring CITY or the City Council to form any such district or to issue and sell bonds.

6. REVIEW FOR COMPLIANCE.

6.1 Periodic Review . The CITY may review this Agreement annually, on or before the anniversary of the Effective Date, in or der to ascertain the compliance by OWNER with the terms of the Agreement. OWNER shall submit an Annual Monitoring Report, in a form a cceptable to the Director, within thirty (3 0) days after written notice from the CITY. The Annual Monitoring Report shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administration of th e Agreement during the succeeding year. The amount of the annual review and administration fee shall be set annually by resolution of the City Council.

6.2 Special Review. The City Council may order a special review of compliance with this Agreement at any time. The Director, or his or her designee, shall conduct such special reviews.

6.3 Procedure.
(a) During either a periodic review or a special review, OWNER shall be required to demonstrate good faith compliance with the terms of the Agreement. The burden of proof on this issue shall be on OWNER.
(b) Upon completion of a periodic review or a special review, the Director, or his or her designee, may submit a report to the Planning Commission setting forth the evidence concerning good faith compliance by OWNER with the terms of this Agreement and his or her recommended finding on that issue.
(c) If the Planning Commission finds and determines on the basis of substantial evidence that OWNER has complied in good faith with the terms and conditions of this Agreement, the review shall be concluded.
(d) If the Planning Commission finds and determines on the basis of substantial evidence that OWNER has not complied in good faith with the terms and conditions of this Agreement, the Commission may recommend to the City Council modification or termination of this Agreement.

Notice of default as provided under Section 7.3 of this Agreement shall be given to OWNER prior to or concurrent with proceedings under Section 6.4 and Section 6.5.

6.4 Proceedings Upon Modification or Termination. If, upon a finding under Section 6.3, CITY determines to proceed with modification or termination of this Agreement, CITY shall give written notice to OWNER of its intention so to do. The notice shall be given at least ten (10) calendar days prior to the scheduled hearing and shall contain:
999

(a) The time and place of the hearing;
(b) A statement as to whether or not CITY proposes to terminate or to modify the Agreement; and,
(c) Such other information that the CITY considers necessary to inform OWNER of the nature of the proceeding.

6.5 Hearing on Modification or Termination . At the time a nd place set for the hearing on modification or termination, OWNER shall be given an opportunity to be heard. OWNER shall be required to demonstrate good faith compliance with the terms and conditions of this Agreement. The burden of proof on this issue s hall be on OWNER. If the City Council finds, based upon substantial evidence, that OWNER has not complied in good faith with the terms or conditions of the Agreement, the City Council may terminate this Agreement or modify this Agreement and impose such co nditions as are reasonably necessary to protect the interests of the CITY. The decision of the City Council shall be final.

6.6 Certificate of Agreement Compliance. If, at the conclusion of a Periodic or Special Review, OWNER is found to be in compliance with this Agreement, CITY shall, upon request by OWNER, issue a Certificate of Agreement Compliance (“Certificate”) to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the Director and City Council that: (1) this Agreement remains in effect ; and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder.

Whether or not the Certificate is relied upon by assignees or other transferees or OWNER, CITY shall not be bound by a Certificate if a default existed at the time of the Periodic or Special Review, but was concealed from or otherwise not known to the Director or City Council.

7. DEFAULT AND REMEDIES.

7.1 Remedies in General . It is acknowledged by the P arties that neither CITY nor OWNER would have entered into this Agreement if either were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except damages.

7.2 Release. Except for non -monetary remedies, OWNER, for itself, its successors and assignees, hereby releases CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursua nt to Article I, Section 19 of the California Constitution, the Fifth and Fourteenth Amendments to the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon CITY because it entered i nto this Agreement or because of the terms of this Agreement. OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHIC H THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR

AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR 1000

HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
By initialing below, OWNER hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. _______________
Owner’s Initials

7.3 Termination or Modification of Agreement for Default of OWNER . CITY may terminate or modify this Agreement for any failure of OWNER to perform any material duty or obligation of OWNER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default"); provided, however, CITY may terminate or modify this Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has as determined by the Director failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default.

7.4 Termination of Agreement for Default of CITY . OWNER may terminate this Agreement only in the event of a default by CITY in the performance of a material term of this Agreement and only after providing written notice to CITY of default setting forth the nat ure of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within sixty (60) days after the effective date of such notice or, in the event that such default cannot be cured within such sixty (60) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such sixty (60) day period and to diligently proceed to complete such actions and cure such default.

8. LITIGATION.

8.1 Third Party Litigation Concerning Agreement . OWNER shall defend, at its expense, including attorneys' fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding a gainst CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement, or the approval of any permit granted pursuant to this Agreement.

CITY shall promptly notify OWNER of any claim, action, proceeding or det ermination included within this Section 8.1, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action, proceeding or determination, or if CITY fails to cooperate in the defense, OWNER shall not thereafter be responsible to defend, indemnify, or hold harmless CITY. CITY may in its discretion participate in the defense of any such claim, action, proceeding or determination.

8.2 Environmental Assurances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of OWNER, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but no t limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including attorneys’ fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action. 1001

8.3 Reservation of Rights. With respect to Section 8.1 and Section 8.2 herein, CITY reserves, the right to either (1) approve the attorney(s) that the indemnifying party selects, hires or otherwise engages to defend the indemnified party hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense; provided, however, that the indemnifying party shall rei mburse the indemnified party forthwith for any and all reasonable expenses incurred for such defense, including attorneys ’ fees, upon billing and accounting therefor.

8.4 Challenge to Existing Land Use Approvals . By accepting the benefits of this Agreement, OWNER, on behalf of itself and its successors in interest, hereby expressly agrees and covenants not to sue or otherwise challenge any land use approval affecting the Property and in effect as of the Effective Date.

Such agreement and covenant includes, without limitation, the covenant against any direct suit by OWNER or its successor in interest, or any participation, encouragement or involvement whatsoever that is adverse to CITY by OWNER or its successor in interest, other than as part of required response to lawful orders of a court or other body of competent jurisdiction. OWNER hereby expressly waives, on behalf of itself and its successors in interest, any claim or challenge to any land use approval affecting the Property and in effect as of the Effective Date. In the event of any breach of the covenant or waiver contained herein, CITY shall, in addition to any other remedies provided for at law or in equity, be entitled to:
(a) impose and recover (at any time, including after sale to a member of the public or other ultimate user) from the party breaching such covenant or waiver, the full amount of Development Impact Fees that the breaching party would have been required to pay in the absence of this Development Agreement; and
(b) impose any subsequently adopted land use regulation on those land use approvals for which the breaching party had not, as of the time of such breach, obtained a building permit.

OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR

AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR

HER MUST HAVE MATERIALLY AFFECTED HIS O R HER SETTLEMENT WITH THE DEBTOR.”
By initialing below, OWNER hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. _______________
Owner’s Initials

8.5 Survival. The provisions of Sections 8.1 through 8.4, inclusive, shall survive the termination of this Agreement.

9. MORTGAGEE PROTECTION.

The parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER's sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require cer tain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and 1002

representatives of such lenders to negotiate in good faith any such request for interpretation or modification.

CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement.

Any Mortgagee of the Property shall be entitled to the following rights and privileges:
(a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law.
(b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER's obligations under this Agreement. (c) If CITY timely receives a request from a mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement.
(d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER's obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY's performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.5 of this Agreement.

10. MISCELLANEOUS PROVISIONS.

10.1 Recordation of Agreement . This Agreement and any amendment or cancellation thereof shall be recorded with the Orange County Recorder by the Clerk of the City Council within ten (10) days after the City enters into the Agreement, in accordance with Section 65868.5 of the Government Code. If the parties to this Agreement or their successors in interest amend or cancel this Agreement, or if the CITY terminates or modifies this Agreement as provided herein for failure of the OWNER to comply in good faith with the terms and conditions of this Agree ment, the City Clerk shall have notice of such action recorded with the Orange County Recorder.

10.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representation s, understandings or ancillary covenants, undertakings or agreements that are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.

10.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provision of the Project Benefits & 1003

Commitments set forth in Section 4 of this Agreement, including the payment of the Development Impact Fees set forth therein, are essential elements of this Agreement and CITY would not have entered into this Agreement but for such provisions, and therefore in the event any such provision is determined to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever.

10.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

10.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

10.6 Singular and Plural. As used herein, the singular of any word includes the plural.

10.7 Joint and Several Obligations. If at any time during the Term of this Agreement the Property is owned, in whole or in part, by more than one OWNER, all obligations of such OWNERS under this Agreement shall be joint and several, and the default of any such OWNER shall be the default of all such OWNERS. Notwithstanding the foregoing, no OWNER of a single lot that has been finally subdivided and sold to such OWNER as a member of the general public or otherwise as an ultimate user shall have any obligation under this Agreement except as expressly provided for herein.

10.8 Time of Essence . Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

10.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter.

10.10 No Third Party Beneficiaries . This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement.

10.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor d ifficulties beyond the party's control, (including the party's employment force), government regulations, court actions and pending litigation (such as lawsuits seeking to overturn the project approvals, restraining orders or injunctions), or other causes beyond the party's control. If any such events shall occur, the Term of this Agreement and the time for performance by either party of any of its obligations hereunder may be extended by the written agreement of the parties for the period of time that such events prevented such performance, provided that the Term of this Agreement shall not be extended under any circumstances for more than five (5) years.

10.12 Mutual Covenants . The covenants contained herein are mutual covenants and also constitute conditions t o the concurrent or subsequent p erformance by the party benefit ed thereby of the covenants to be performed hereunder by such benefited party. 1004

10.13 Successors in Interest . The burdens of this Agreement shall be binding upon, and the benefits of this Agreement s hall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act h ereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof.

10.14 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.

10.15 Jurisdiction and Venue . Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court.

10.16 Project as a Private Undertaking. It is specifically understood and agre ed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the development of private property and the owner of such property.

10.17 Further Actions and Instruments . Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute and file or record such required instruments and writings and take any actions as may be reason ably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement.

10.18 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain.

10.19 Agent for Service of Process . In the event OWNER is not a resident of the State of California or it is an association, partnership or joint venture without a member, partn er or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, OWNER shall file with the Director and the City Clerk, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in a ny such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process and such service shall constitute valid service upon OWNER. OWNER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto.

10.20 Authority to Execute . The person or persons executing this Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Agreement on behalf 1005

of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind OWNER to the performance of its obligations hereunder.

[SIGNATURES ON FOLLOWING PAGE]

1006

IN WITNESS WHEREOF, the parties hereto have executed this Development Agreement on the last day and year set forth below.

OWNER

Rose Equities, as authorized signatory for
International Asset Management Holding Group
Costa Mesa Sunflower, LLC

____________________________________ Dated: _______________ Rose Equities
By: Brent Stoll, Partner

CITY

CITY OF COSTA MESA, a California municipal
corporation

_________________________________ Dated: _______________ John Stephens, Mayor

ATTEST

_________________________________ Dated: _______________ Brenda Green, City Clerk

APPROVED AS TO LEGAL FORM

_________________________________ Dated: _______________ Kimberly Hall Barlow, City Attorney

1007

EXHIBIT “A”

(Legal Description of the Property)

Parcel 1, in the City of Costa Mesa, County of Orange, State of California, as shown on map filed in Book 73, Pages 11 and 12 of Parcels Maps, in the office of the County Recorder of said County. APN: 13-031-62 and 139-651-14
1008

EXHIBIT “B”

(Map of the Property)

1009

EXHIBIT “C”

(Development Plan)

General Plan Amendment No. 20-01
Specific Plan No. 20-01 2024-07
Zone Change No. 20-01 2024-06
Tract Map No. 19015
Master Plan No. 19-19
1010

EXHIBIT “D”

(Development Impact Fees)

CITY OF COSTA MESA DEVELOPMENT IMPACT FEES
Fee Type Fee Amount Time of Payment
Park Impact Fee $5,000 per unit Apartment Project: Prior to the issuance of the first building permit
Condominium Project: Prior to Final
Tract Map approval, payment for the
difference in fees between the initial
$5,000.00 per unit park impact fee
and the fee in place at the time of
Map recordation for condominium
units
Traffic Impact Fee $235 for additional trips Prior to the issuance of the first building permit; The
project will generate a total of
6,800 vehicle trips
Open Space and Public
Park Impact Fee (Measure
Z)
$1.50 per SF per City Council
Resolution 17-19
Prior to issuance of the first building
permit
Fire Protection System
Development Impact Fee
Equivalent to North Costa Mesa
Specific Plan ($0.28 per square
foot of new development and
$469.35 per new residential unit)
or fee in effect as a result of a new
citywide fire fee study
Prior to issuance of the first building
permit
Drainage Fees Fees effective at the time of
building permit issuance (currently
$5,026.00 per acre)
Prior to issuance of the first building
permit issuance

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CITY OF COSTA MESA DEVELOPMENT IMPACT FEES
Fee Type Fee Amount Time of Payment
Park Impact Fee $5,000 per unit Condominium Project: Prior to Final Tract Map approval,
payment for the difference in fees
between the initial $5,000.00 per
unit park impact fee and the fee in
place at the time of Map
recordation for condominium units
Apartment Project: shall be paid in
two installments with deferred fees
subject to a 3% interest rate as
stated below

Traffic Impact Fee $235 for additional trips
The project will generate a total
of 6,800 additional vehicle trips
Development Fees shall be paid in
two installments with deferred fees
subject to a 3% interest rate from
the Effective Date. The first
payment shall be received with the
issuance of the first building permit
(Year 1), the second and final
payment received by no later than
the earlier of either five years from
the date of the first issuance of
building permit (“Construction
Date”) or final inspection approval
for the project’s last residential
unit.

Open Space and Public
Park Impact Fee
(Measure Z)
$1.50 per SF per City Council
Resolution 17-19
Fire Protection System
Development Impact Fee
Equivalent to North Costa Mesa
Specific Plan ($0.28 per square
foot of new development and
$469.35 per new residential unit)
or fee in effect as a result of a
new citywide fire fee study
Drainage Fees Fees effective at the time of
building permit issuance
(currently $5,026.00 per acre)

OTHER AGENCY DEVELOPMENT IMPACT FEES
Newport-Mesa Unified
School District
Fees effective at the time of building
permit issuance (currently 1.84 per SF)
Payment of non-city fees are
required prior to building
permit issuance or as
otherwise required by the
implementing agency.

Costa Mesa Sanitary
District
Plan check and permit fees effective at
the time of building permit issuance
Mesa Water District Plan check and permit fees effective at the time of building permit issuance
San Joaquin Hills
Transportation
Corridor Fees
Fees effective at the time of building
permit issuance (currently $2,664 for
multi-family)

1012

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-228 Meeting Date: 6/18/2024
TITLE:

SECOND READING OF ORDINANCE NO. 2024-02 AMENDING TITLE 13 (PLANNING, ZONING

AND DEVELOPMENT) OF THE COSTA MESA MUNICIPAL CODE TO ESTABLISH AFFORDABLE

HOUSING REQUIREMENTS FOR NEW RESIDENTIAL DEVELOPMENT PROJECTS DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES

DEPARTMENT/PLANNING DIVISION
PRESENTED BY: AMBER GREGG, CONTRACT PLANNER
CONTACT INFORMATION: AMBER GREGG, CONTRACT PLANNER, (714) 754-5617 RECOMMENDATION:

Staff recommends the City Council:

1. Find that the adoption of Ordinance No. 2024-02 is exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15061(b)(3), General Rule in that the Affordable Housing Ordinance will not have a significant impact on the environment.

2. Give second reading to and adopt Ordinance No. 2024-02 approving the Affordable Housing Ordinance and amending Title 13 to establish the affordable housing requirements for certain new residential development projects.

1013

City of Costa Mesa
Agenda Report

77 Fair Drive
Costa Mesa, CA
92626
Item #: 24-228 Meeting Date: 06/18/2024

TITLE: SECOND READING OF ORDINANCE NO. 2024 -02 AMENDING TITLE 13 (PLANNING,

ZONING AND DEVELOPMENT) OF THE COSTA MESA MUNICIPAL CODE TO ESTABLISH

AFFORDABLE HOUSING REQUIREMENTS FOR NEW RESIDENTIAL DEVELOPMENT PROJECTS

DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING

DIVISION

PRESENTED BY: AMBER GREGG, CONTRACT PLANNER

CONTACT INFORMATION: AMBER GREGG, CONTRACT PLANNER, (714) 754-5617

RECOMMENDATION:

Staff recommends the City Council:

1. Find that the adoption of Ordinance No. 2024 -02 is exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15061(b)(3), General Rule in that the Affordable Housing Ordinance will not have a significant impact on the environment.

2. Give second reading to and adopt Ordinanc e No. 2024 -02, approving the Affordable Housing Ordinance and amending Title 13 to establish the affordable housing requirements for certain new residential development projects.

BACKGROUND:

On January 16, 2024, the City Council considered the first reading of the Affordable Housing Ordinance. The Affordable Housing Ordinance would require certain new housing projects in the City to provide a percentage of its housing units as “affordable” units for low, and/or very low -income households. The City Council considered the ordinance as well as other issues raised by members of the public. Modifications to the ordinance were introduced and the City Council voted 4 -2 (Councilmember Chavez and Mayor Pro Tem Harlan voting no; Councilmember Harper absent) to give first reading of Ordinance No. 2024 -02. The January 16, 2024, City Council agenda report, meeting video, and public comments are included in the links below:

January 16, 2024, City Council Agenda Report:
https://costamesa.legistar.com/View.ashx?M=F&ID=12583737&GUID=46F95F9D-81D5-4D12- 9292-3369710C4230

1014

Item #: 24-228 Meeting Date: 06/18/2024

January 16, 2024, City Council Video:
https://costamesa.granicus.com/player/clip/4078?view_id=14&redirect=true

At the April 2, 2024, City Council meeting, the City Council considered the second reading of the Affordable Housing Ordinance and an in-lieu fee resolution to establish an affordable housing in -lieu fee schedule. Modifications were introduced and the City Council passed a motion for staff to make changes to the Ordinance and bring it back for second reading. In addition, the Council deferred the in-lieu fee resolution to a later date.

April 2, 2024, City Council Agenda Report (also provided as Attachment 3):
https://costamesa.legistar.com/View.ashx?M=F&ID=12813101&GUID=0833EA65-75E4-4457-91C3- 6C527B94C87C

April 2, 2023, City Council Video:
https://costamesa.granicus.com/player/clip/4125?view_id=14&redirect=true

ANALYSIS:

On April 2, 2024, the City Council reviewed the draft Ordinance and directed the following modifications:

 At 60 units per dwelling acre, provide 10% of the units for low-income housing, or 5% for very low-income housing.
 Allocate $2.5 million into an Affordable Housing Trust Fund, including a first-time homeownership program.
 Direct staff to bring back strategies & needs to accelerate rezoning.  Streamline projects subject to the affordable housing ordinance.  Increase the project threshold subject to the ordinance to 50 dwelling units.  The Ordinance shall be effective 31 days after adoption (pursuant to State Law).  Strike sections related to home ownership projects in the ordinance.  Defer in-lieu fees to a future meeting.

The modifications have been incorporated and are reflected in the draft City Council Ordinance contained in Attachment 1. Attachment 2 shows the modifications to the Ordinance in “track changes” format, added text is identified by an underline and text removal is shown in strikethrough.

Table 1 bel ow provides a summary of the proposed Affordable Housing Program components and requirements included in the proposed ordinance.

Table 1 - Proposed Affordable Housing Program Components and Requirements

PROGRAM COMPONENT PROPOSED REQUIREMENTS
Project Threshold 50 units
Number of Affordable Units/Required
Income – Rental Project
 60+ dwelling unit (du)/acre: 10% at low-
income or 5% at very-low income
 Under 60 du/acre: 6% at low-income or
4% at very-low income
Covenant Period – Rental At least 55 years
1015

Item #: 24-228 Meeting Date: 06/18/2024

Affordable Unit Minimum Size No more than 15% smaller than average market rate unit
Affordable Unit Bedroom Mix Proportional to market rate units Affordable Unit Location Evenly distributed/dispersed throughout the residential project
Alternatives for Compliance
 Land dedication
 Offsite construction of affordable units
 Payment of in-lieu fees
Incentives
 Allow residential uses in
commercial/industrial corridors
 Increased densities
 Allow low-income rents to be charged
based on 80% AMI vs. 60% AMI
(required by State density bonus)
 Reduced parking requirements
 Concurrent processing

ENVIRONMENTAL DETERMINATION:

The proposed Ordinances are exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), General Rule in that the Affordable Housing Ordinance will not have a significant impact on the environment.

ALTERNATIVES:

The City Council has the following alternatives:

1. Give second reading and adopt the Ordinance as proposed . The City Council may give second reading to the draft Ordinance and adopt the Ordinance as proposed.

2. Continue the Ordinance second reading to a date certain. The City Council may continue the item to a date certain with direction for staff to return with additional information , c hanges and/or clarifications.

FISCAL REVIEW:

Adoption of the proposed Ordinance is not anticipated to have any fiscal impact on the City’s budget.

However, if the City Council should adopt an in-lieu housing fee in the future, the City could potentially receive funding from the payment of fees that would be deposited into a Housing Trust Fund (Fund 226) to support and promote affordable housing programs in the City, including the administration of the City’s Affordable Housing Program.

LEGAL REVIEW:

The draft Ordinances and staff report have been prepared in conjunction with and reviewed by the City Attorney’s Office.
1016

Item #: 24-228 Meeting Date: 06/18/2024

PUBLIC NOTICE:

Pursuant to Government Code Section 36933, a summary of the proposed Ordinance was published once in the newspaper no less than five days prior to the June 18, 2024 second reading. A summary of the adopted ordinance will also be published within 15 days after the adoption.

Public comments received prior to the June 18, 2024 City Council meeting may be viewed at this link:

CITY OF COSTA MESA - Calendar (legistar.com)

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Council's Goal to diversify, stabilize, and increase housing to reflect the community needs in that the adoption of an Affordable Housing Ordinance would assist in achieving the City’s RHNA for the very -low-, low -, and moderate -income categories, coupled with the other Housing Element programs intended to remove or reduce existing barriers and constraints to market - rate housing developments.

CONCLUSION:

Addressing housing needs for all income levels has been identified as one of the main housing goals by the Costa Mesa community and City Council. The community profile described in the 2021 -2029 Housing Element showed that approximately half of Costa Mesa residents are overpaying for housing costs due to the lack of housing options , especially affordable housing. Adoption of an Affordable Housing Ordinance would be a step towards addressing this issue coupled with the other Housing Element programs intended to remove or reduce existing barriers and constraints to market -rate housing developments. Furthermore, the ordinance would help towards achieving the City’s RHNA for the very-low-, low-, and moderate -income categories. It s adoption would also fulfill the objective of Program 2A of the Housing Element and help achieve City Council’s goal to “diversify, stabilize and increase housing to reflect community needs.”

1017
ATTACHMENT 1

Ordinance No. 2024-02 Page 1 of 16

ORDINANCE NO. 2024-02

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA
MESA AMENDING TITLE 13 (PLANNING, ZONING, AND

DEVELOPMENT) OF THE COSTA MESA MUNICIPAL CODE TO

ESTABLISH AFFORDABLE HOUSING REQUIREMENTS FOR NEW

RESIDENTIAL PROJECTS

THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY FIND AND DECLAIRE AS FOLLOWS:

SECTION 1: Findings. The City Council finds and declares as follows:

WHEREAS, the City compiled a community housing characteristics report which found that approximately 47-percent of the Costa Mesa community earns a lower income and approximately 29-percent of the community qualify for very low or extremely low- income housing. Based on housing prices, lower income households cannot afford to own or rent in Costa Mesa without experiencing overpayment; WHEREAS, on September 27, 2021, the City Council adopted a Strategic Plan identifying five key goals to address specific community issues and needs which included to “diversify, stabilize, and increase housing to reflect community needs.” To address this goal, Council identified considering a draft affordable housing ordinance as a priority; WHEREAS, the City’s adopted 2021-2029 Housing Element includes Program 2A which calls for the City to adopt an affordable housing ordinance; WHEREAS, the City retained an expert consultant, Keyser Marston Associates Inc. (KMA), to prepare a Financial Evaluation in order to evaluate supportable affordable housing requirements and make policy recommendations for a potential affordable housing ordinance;
WHEREAS, the City Council held two joint study sessions with the Planning Commission on May 16, 2023 and July 11, 2023 with all persons having the opportunity to speak for and against the proposal;
WHEREAS, a draft affordable housing ordinance has been prepared based on the direction of the City Council and Planning Commission, and considering KMA’s Financial Evaluation and feedback received during public comments and during stakeholders meetings with housing advocates and housing developers; 1018

Ordinance No. 2024-02 Page 2 of 16

WHEREAS, a duly noticed public hearing was held by the Planning Commission on November 13, 2023 with all persons having the opportunity to speak for and against the proposal;
WHEREAS, the Planning Commission voted 4-0 (Chair Ereth, Commissioner Rojas, and Commissioner Klepack absent) to continue the item to December 11, 2023; WHEREAS, a public hearing was held by Planning Commission on December 11, 2023 with all persons having the opportunity to speak for and against the proposal; WHEREAS, the Planning Commission voted 5-2 (Commissioners Zich and Andrade voting no) to recommend that the City Council give first reading to adopt an ordinance amending Title 13 of the Costa Mesa Municipal Code to establish minimum affordable housing requirements;
WHEREAS, a duly noticed public hearing was held by the City Council on January 16, 2024 with all persons having the opportunity to speak for and against the proposal; WHEREAS, the City Council voted 4-2 (Mayor Pro Tem Harlan and Councilmember Chavez voting no and Councilmember Harper absent) to give first reading of Ordinance No. 2024-02 (Affordable Housing Ordinance); WHEREAS, a duly noticed public hearing was held by the City Council for the second reading of Ordinance No. 2024-02 and fee resolution to establish the affordable housing in-lieu fee schedule on April 2, 2024 with all persons having the opportunity to speak for and against the proposal;
WHEREAS, the City Council made additional revisions to the ordinance for the threshold project size and affordability requirements for rental projects at 60+ dwelling units/acre and voted 7-0 to adopt the Affordable Housing Ordinance and give another first reading of the ordinance as well as continue the fee resolution to a date uncertain; WHEREAS, a duly noticed public hearing was held by the City Council for the second reading of Ordinance No. 2024-02 on June 18, 2024 with all persons having the opportunity to speak for and against the proposal; and
WHEREAS, the City Council voted X-X to give second reading to and adopt the Affordable Housing Ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY ORDAINS AS FOLLOWS:
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Ordinance No. 2024-02 Page 3 of 16

SECTION 2: Code Amendment. Title 13 (Planning, Zoning and Development). Title 13, Planning, Zoning and Development of the Costa Mesa Municipal Code, as specified in Exhibit A, attached hereto and incorporated herein by this reference, is hereby amended as set forth therein.

SECTION 3. Compliance with CEQA. Adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule). Under Section 15061(b)(3), the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the project is exempt from CEQA. This Ordinance will not affect the physical environment by permitting a new use or intensifying an existing use. Instead, the Ordinance establishes affordable housing requirements through a range of means for individual projects. There is no potential for the changes to result in significant impact on the environment. Furthermore, the Ordinance is not considered a project as defined pursuant to Public Resource Code 21065 because the Ordinance will not cause either direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.

SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Costa Mesa hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

SECTION 5. Effective Date. This Ordinance shall take effect on the 31st day after adoption.

SECTION 6. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law.
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Ordinance No. 2024-02 Page 4 of 16

PASSED AND ADOPTED this 18th day of June, 2024

________________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM

______________________________ ________________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney

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Ordinance No. 2024-02 Page 5 of 16

EXHIBIT A

ARTICLE 1. RESIDENTIAL DISTRICTS
13-38.1. Affordable housing requirements for new residential developments.

For any proposed residential or mixed-use project with fifty (50) or more dwelling units, the affordable housing requirements set forth in Chapter XVII (Affordable Housing Ordinance) shall apply unless otherwise exempted.

CHAPTER XVII. AFFORDABLE HOUSING ORDINANCE
13-326. Purpose.

The purpose of this chapter is to establish an affordable housing program that facilitates the development and availability of housing affordable to a broad range of households with varying income levels within the City to meet current and future affordable housing needs.
13-327. Applicability.

This chapter shall apply to:
(a) properties that are located in areas for which the City completed a Zone Change and/or General Plan Amendment that allows for residential development after the effective date of this chapter; and/or
(b) properties that receive City approval of a General Plan Amendment, Zone Change or other discretionary land use or development approval including but not limited to Master Plan, Specific Plan, or subdivision after the effective date of this chapter and which allows for residential development and/or an increase in residential density as compared to the land uses and density that exists on the site at the time of the effective date of this chapter; and
(c) provided, however, that this chapter shall not be applied in a manner that conflicts with applicable State law.

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13-328. Exemptions.

The requirements of this chapter shall not apply to the following:
(a) Residential projects with less than fifty (50) dwelling units; (b) Any ownership residential projects of any size;
(c) Conversions of existing multi-family residential developments such as apartments to residential common interest developments (condominiums) for ownership housing pursuant to section 13-42;
(d) The reconstruction of any residential structures that have been destroyed by fire, flood, earthquake or other act of nature;
(e) Residential building additions, repairs or remodels; (f) Residential projects or mixed-use projects having residential units and located within the boundaries of the Fairview Development Center Specific Plan; and (g) Any residential project for which the city enters into a development agreement pursuant to California Government Code Section 65964 that provides affordable housing obligations comparable to this chapter.
13-328. Fairview Developmental Center Specific Plan.

All residential projects or mixed-use development projects having residential units and located within the boundaries of the Fairview Development Center Specific Plan shall be subject to the affordability requirements established by the provisions of the Specific Plan at the time of its adoption and are not subject to the requirements of this chapter. 13-329. Definitions.

As used in this chapter the following terms shall have the meanings set forth below.

Terms not specifically defined herein shall have the meanings ascribed to them elsewhere in this code:

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Ordinance No. 2024-02 Page 7 of 16

Affordable Housing Agreement. A legally binding recorded agreement and/or deed restriction in a form satisfactory to the director and the city attorney setting forth those provisions necessary to ensure that the requirements of the chapter are met, including but not limited to those specified in section 13-332.

Affordable Housing Plan. A plan containing all of the information specified and submitted in conformance with this chapter specifying the manner in which affordable units will be provided.

Affordable Housing Trust Fund. The fund into which all collected in-lieu fees are deposited for the purposes of furthering affordable housing goals within the City.

Affordable Rent. The maximum affordable housing cost minus any housing costs that are imposed on the tenant on a mandatory basis. The affordable housing cost is based on the percentages of AMI identified in the following table, as adjusted for household size appropriate for the unit (as defined in California Health and Safety Code Section 50052.5), times 30%:

Income Category
Percentage of
AMI
Low Income 80%
Very Low Income 50%

Affordable Sales Price. The maximum price that can be charged to a moderate income household based on the calculation methodology defined in California Health and Safety Code Section 50052.5.

Affordable Unit. A dwelling unit that is required to be rented at the affordable rent or sold at the affordable sales price to very low, low- and moderate-income households.

Applicant. A person or entity that applies for approval or approvals for a residential project and/or owns the property or properties on which a residential project is proposed.

Area Median Income (AMI). The median household income of households in Orange County, adjusted for household size, as determined by the California Housing and Community Development department (HCD).
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Director. The Director of Economic and Development Services or his or her designee.

Density Bonus. An increase in the number of units permitted in a proposed Residential Project provided pursuant to California State Density Bonus Law as set forth in Government Code Section 65915, et seq.

Extremely Low-Income Household. A household with a gross annual household Income that does not exceed 30% of AMI for Orange County as defined in California Health and Safety Code Section 50106.

Gross Annual Household Income. As defined in 25 Cal. Code Regs. Section 6914 including any successor section thereto.

In-lieu Fee. The fee payable as an alternative to the construction of on-site affordable units.

Low-income Households. A household with a gross annual household income between 51% and 80% of AMI for Orange County as defined in California Health and Safety Code Section 50079.5.

Market-rate Unit. A dwelling unit offered on the open market at the prevailing market-rate for purchase or rental.

Moderate-income Household. A household with a gross annual household income between 81% and 120% of AMI for Orange County as defined in California Health and Safety Code Section 50093.

Ownership Project. A residential project that is intended to be sold for homeownership.

Rental Project. A residential project that is intended to be rented to tenants.

Residential Project. A project undertaken for the purpose of development of land for residential purposes that requires the issuance of a discretionary approval or permit, including a permit for construction, and that will include fifty (50) or more dwelling units.

Very Low-income Households. A household with a gross annual household income that does not exceed 50% of AMI for Orange County, as defined in California Health and Safety Code Section 50105.
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Zone Change. Any proposed change to the official zoning map. The terms rezone and zoning amendment shall also have the same meaning.
13-330. Affordable Housing Requirements.

The following requirements and standards shall apply to any for rent residential project subject to this chapter:
(a) Project Threshold. The affordable housing requirement is applicable to any proposed residential project with fifty (50) dwelling units or more. (b) Number of Affordable Units. The minimum number of dwelling units required to be set aside as affordable units and the required affordability level(s) of the units are specified as follow:
(1) Rental Projects. An applicant of a rental project shall fulfill their obligation with onsite production of affordable rental units at either low or very-low income levels and the minimum required number of units shall be calculated based on the proposed project’s base density.
a. For residential projects either rezoned to or located in the areas designated to be rezoned in the General Plan and/or within the boundaries of Figure 13-200.106 of section 13.200.106 at 60 or more dwelling units per acre: at least 10% of the total applicable dwelling units proposed shall be affordable at the low-income level or at least 5% at the very-low income level. b. For residential projects either rezoned to or located in the areas to be rezoned in the General Plan and/or within the boundaries of Figure 13- 200.106 of section 13.200.106 at under 60 dwelling units per acre: at least 6% of the total applicable dwelling units proposed shall be affordable at the low-income level or at least 4% at the very-low income level. c. For any partial affordable unit calculated, the applicant shall pay a fractional in-lieu fee payment in accordance with the adopted in-lieu fee schedule or round up the calculation to the highest whole number.
(2) Residential Projects with Mixed Housing Types. If an applicant proposes a residential project that includes both ownership and rental units, the provisions of 1026

Ordinance No. 2024-02 Page 10 of 16

this chapter that apply to rental projects shall apply to that portion of the development that consists of rental units.
(3) Parcel or Lot Merger. An applicant shall not avoid the requirements of this chapter by submitting piecemeal planning permit applications. At the time of the application for first approval for the residential project, the applicant shall identify all contiguous property under common ownership and control. The applicant shall not be required to construct dwelling units upon the contiguous property at the time of the application for first approval; however, the applicant shall be required to include the contiguous property under common ownership or control in its affordable housing plan. The affordable housing agreement shall be recorded against the residential project and all contiguous property under common ownership or control and shall require compliance with this chapter upon development of each contiguous property at such time as there are planning permit applications that would authorize residential units for the residential development and the contiguous property under common ownership or control.
(c) Covenant Period. The affordable units shall remain affordable for not less than fifty- five (55) years or as stated in the affordable housing agreement or other agreement(s).

After fifty-five (55) years the affordability covenant may be removed only if the property is redeveloped as a non-residential use.
(d) Timing of Construction. The affordable units shall be constructed concurrently with or prior to the construction of market rate units. In phased developments, the affordable units shall be constructed in proportion to the number of dwelling units in each phase of the market rate project. The applicant shall provide a Construction Phasing Plan as part of their project plans for review by the director or their designee prior to the submittal of plans for a building permit.
(e) Unit Size. The size of the affordable units shall be the same size as the market rate units but the final review authority may consider and approve affordable units no more than 15% smaller in square footage than the average square footage of the market rate units.
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(f) Bedroom Mix. The bedroom mix of the affordable units shall be proportional to the market rate units or as otherwise agreed in the affordable housing agreements or other approved agreements with the City.
(g) Design. All exterior and interior improvements including floor plan design, finishes/materials, etc. for the affordable units shall be comparable, if not same, to the market rate units. The affordable units shall have same access to and enjoyment of all community amenities/facilities in the residential project. The final review authority may consider and approve alternative exterior and/or interior design improvements for the affordable units as long as it is comparably the same to the market rate units. (h) Location. Affordable Units shall be dispersed and evenly distributed throughout a residential project and not clustered in a particular area of the development or as otherwise agreed at the City’s discretion in an affordable housing agreement.

Affordable units within a residential project that share a common entrance or access shall not have separate entrances or access for market rate and affordable units. (i) Certificate of Occupancy. No certificate of occupancy will be issued for any corresponding market rate unit in a new residential project prior to completion of the required affordable units (including offsite) and/or payment of in-lieu fees. 13-331. Alternative Compliance Procedures.

The following are the alternative options to fulfill the requirements of this chapter if onsite production of affordable units is determined by the director or their designee to be economically infeasible.
(a) In-Lieu Fees. The payment of in-lieu fees may be used to fulfill the affordable housing requirement for rental projects and any fractional number of affordable units required. (1) In-lieu fees shall be paid prior to the issuance of the first building permit for the residential project unless specified and/or agreed elsewhere in recorded agreement(s) with the City. For phased developments, the applicant may pay a pro rata share of the in-lieu fee concurrently with the issuance of a building permit for each phase.
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Ordinance No. 2024-02 Page 12 of 16

(2) In-lieu fees shall be paid according to a fee schedule adopted by the City Council.

The in-lieu fee schedule shall be adjusted periodically on an annual basis or as determined by the City Council or their designee and shall be adopted by resolution.
(3) All in-lieu fees collected shall be deposited into the City’s housing trust fund. (b) Offsite Construction. Affordable units may be constructed offsite only upon a determination by the director or their designee that onsite production of affordable units is economically infeasible. If this alternative compliance option is chosen, then the offsite affordable units must be constructed prior to or concurrently with construction of the market rate residential project.
(1) The offsite affordable units shall comply with all applicable requirements pursuant to this chapter for onsite production of affordable units. (2) The offsite location shall be located within the City of Costa Mesa boundaries and shall be located within a reasonable distance from the market rate residential project that is subject to the affordable housing requirement. (3) For residential projects for which a master plan is required, the affordable units may either be provided onsite or offsite on a separate parcel within the residential project’s approved master plan boundaries.
(c) Land Dedication. An applicant may dedicate, without cost to the City, land (single or multiple parcels) within the City of Costa Mesa boundaries that is sufficient to accommodate the number of affordable units required by the market rate project. The following requirements are applicable to any land proposed to be dedicated to the City to fulfill the affordable housing requirement:
(1) The land to be dedicated to the City shall be located in the City of Costa Mesa; (2) The General Plan and zoning standards shall allow for residential use at a density sufficient to allow for the market rate project’s required number of affordable units to be constructed;
(3) The land shall be suitable in terms of size, configuration, and physical characteristics including existing utilities, streets, and other infrastructure 1029

Ordinance No. 2024-02 Page 13 of 16

improvements necessary to allow for the market rate project’s required number of affordable units to be constructed;
(4) The value of the land shall be equivalent or comparable to the in-lieu fee payment that would be applicable to the proposed residential project; (5) The applicant shall provide property related report(s) to demonstrate the suitability and value of the land to be dedicated including but not limited to title report, appraisal report, and environmental site assessment(s).

13-332. Affordable Housing Agreement and Affordable Housing Plan.

The applicant shall prepare and submit a draft affordable housing agreement and affordable housing plan as part of the proposed residential project’s planning application(s). The director shall review and determine if the plan and agreement are complete and in substantial conformance with the requirements of this chapter. This section shall not apply to residential projects where the developer fulfills their obligation with payment of in-lieu fees or land dedication.
(a) Affordable Housing Plan Requirements. The applicant shall submit a plan detailing how the requirements of this chapter will be implemented. The plan shall include the following information but not limited to:
(1) The location, structure, proposed tenure and size of the proposed market rate and affordable units;
(2) The total number of affordable units to be provided and the calculations used to determine the number of required affordable units;
(3) A floor plan and site plan depicting the location of the affordable units; (4) The income level targets for each affordable unit;
(5) The mechanisms that will be used to assure that the affordable units remain affordable for the required term as specified in section 13-330(b); (6) A marketing plan for the process by which qualified households will be reviewed and selected to rent affordable units; and
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(7) Construction phasing plan schedule with the anticipated completion and opening date and as applicable for phased residential projects. (b) Affordable Housing Agreement Requirements. Upon final project approval, the developer shall execute and record an affordable housing agreement in a form approved by the City Attorney, prior to approval of any final or parcel map or issuance of any building permit, whichever occurs first, and that at a minimum specifies the number, type, location, size, and phasing of all affordable units, provisions for income certification and screening of potential renters of the affordable units, consistent with the approved affordable housing plan and any administrative procedures adopted pursuant to section 13-338.
(1) An affordable housing agreement will not be required for projects which will be satisfying their affordable housing requirement through payment to the City of an in-lieu fee.
(2) The City Council, by resolution, may establish fees for the ongoing administration and monitoring of the affordable units, which fees may be updated periodically, as required.
13-333. Affordable Housing Trust Fund.

All in-lieu fees, promissory note repayments, shared appreciation payments and other funds collected under this chapter shall be deposited into a separate account to be designated as the City of Costa Mesa Affordable Housing Trust Fund. The City may elect to deposit funds from other sources into this affordable housing trust fund. The moneys and all earnings from investments of the moneys in the affordable housing trust fund shall be expended exclusively to provide or assure continued provision of affordable housing in the City through, including but not limited to, acquisition, construction, development assistance, rent subsidies, or first-time homebuyer programs, and for the associated costs of administering and monitoring these programs.
13-334. Density Bonus.

Pursuant to the California State Density Bonus Law (Government Code Section 65915, et seq.), if the applicant is proposing to provide affordable units in exchange for an 1031

Ordinance No. 2024-02 Page 15 of 16

increase in density, concessions, incentives, or waivers/modifications of development standards, the affordable units required to fulfill the density bonus may also count as affordable units required in this chapter provided they also meet, or exceed, the requirements outlined in section 13-330.
13-335. Parking Requirements.

An applicant that provides affordable units pursuant to this chapter is not required to comply with the parking requirements set forth in section 13-85. A lower parking requirement may be allowed if supported by a parking study prepared by a traffic engineering firm with expertise in parking trends and demands, unless otherwise prohibited by state law. The parking study shall be reviewed and approved by the director or their designee.
13-336. Concurrent Processing.

Concurrent processing of planning application(s) and plan check application(s) may be allowed at the discretion of the director or their designee when the planning application(s) have been deemed complete. The applicant shall be required to enter into a hold harmless agreement with the City prior to any concurrent review. 13-337. Compliance Monitoring.

To ensure that affordable units constructed pursuant to this chapter are properly maintained and continue to comply with the applicable provisions of this chapter, the applicant or responsible party at the time shall submit annual compliance reports to the City for review. In addition, the City shall conduct periodic onsite audits to ensure compliance with all applicable laws, policies, and agreements. The City Council may adopt fees for the costs of monitoring and compliance review, which shall be deposited into the affordable housing trust fund for that purpose. 13-338. Administrative Procedures.

The City Manager is authorized to adopt administrative rules, regulations, policies, guidelines, standards, and/or procedures necessary to implement the provisions of this chapter including but not limited to eligibility requirements and/or preference standards that may be applied in the selection of homebuyers and tenants. 1032

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13-339. Enforcement.
(a) Violations of this chapter may be enforced by all available remedies at law or in equity, including, but not limited to those set forth in section 1-33 of this code. (b) Failure of any city official, employee, or agent to fulfill and/or enforce the requirements of this chapter shall not excuse any person or property from the requirements of this chapter.

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ATTACHMENT 2

ARTICLE 1. RESIDENTIAL DISTRICTS
13-38.1. Affordable housing requirements for new residential developments.

For any proposed residential or mixed-use project with fifty (50) fifteen (15) or more dwelling units, the affordable housing requirements set forth in Chapter XVII (Affordable Housing Ordinance) shall apply unless otherwise exempted.

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CHAPTER XVII. AFFORDABLE HOUSING ORDINANCE
13-326. Purpose.

The purpose of this chapter is to establish an affordable housing program that facilitates the development and availability of housing affordable to a broad range of households with varying income levels within the City to meet current and future affordable housing needs. 13-327. Applicability.

This chapter shall apply to:
(a) properties that are located in areas which the City completed a Zone Change and/or General Plan Amendment that allows for residential development after the effective date of this chapter; and/or
(b) properties that receive City approval of a General Plan Amendment, Zone Change or other discretionary land use or development approval including but not limited to Master Plan, Specific Plan, or subdivision after the effective date of this chapter and whic h allows for residential development and/or an increase in residential density as compared to the land uses and density that exists on the site at the time of the effective date of this chapter; and (c) provided, however, that this chapter shall not be applied in a manner that conflicts with applicable State law.
13-328. Exemptions.

The requirements of this chapter shall not apply to the following:
(a) Residential projects with less than fifty (50) fifteen (15) dwelling units; (b) Any ownership residential projects of any size;
(c) Conversions of existing multi -family residential developments such as apartments to residential common interest developments (condominiums) for ownership housing pursuant to section 13-42;
(d) The reconstruction of any residential structures that have been destroyed by fire, flood, earthquake or other act of nature;
(e) Residential building additions, repairs or remodels; (f) Residential projects or mixed -use projects having residential units and located within the boundaries of the Fairview Development Center Specific Plan; and 1035

(g) Any residential project for which the city enters into a development agreement pursuant to California Government Code Section 65964 that provides affordable housing obligations comparable to this chapter.
13-328. Fairview Developmental Center Specific Plan.

All residential projects or mixed -use development projects having residential units and located within the boundaries of the Fairview Development Center Specific Plan shall be subject to the affordability requirements es tablished by the provisions of the Specific Plan at the time of its adoption and are not subject to the requirements of this chapter. 13-329. Definitions.

As used in this chapter the following terms shall have the meanings set forth below. Terms not specifically defined herein shall have the meanings ascribed to them elsewhere in this code:

Affordable Housing Agreement. A legally binding recorded agreement and/or deed restriction in a form satisfactory to the director and the city attorney setting forth those provisions necessary to ensure that the requirements of the chapter are met, including but not limited to those specified in section 13-332.

Affordable Housing Plan. A plan containing all of the information specified and submitted in conformance with this chapter specifying the manner in which affordable units will be provided.

Affordable Housing Trust Fund. The fund into which all collected in-lieu fees are deposited for the purposes of furthering affordable housing goals within the City.

Affordable Rent. The maximum affordable housing cost minus any housing costs that are imposed on the tenant on a mandatory basis. The affordable housing cost is based on the percentages of AMI identified in the following table, as adjusted for household size appropriate for the unit (as defined in California Health and Safety Code Section 50052.5), times 30%:

Income Category
Percentage of
AMI
Low Income 80%
Very Low Income 50%

Affordable Sales Price. The maximum price that can be charged to a moderate income household based on the calculation methodology defined in California Health and Safety Code Section 50052.5.
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Affordable Unit. A dwelling unit that is required to be rented at the affordable rent or sold at the affordable sales price to very low, low- and moderate-income households.

Applicant. A person or entity that applies for approval or approvals for a residential project and/or owns the property or properties on which a residential project is proposed.

Area Median Income (AMI). The median household in come of households in Orange County, adjusted for household size, as determined by the California Housing and Community Development department (HCD).

Director. The Director of Economic and Development Services or his or her designee.

Density Bonus. An increase in the number of units permitted in a proposed Residential Project provided pursuant to California State Density Bonus Law as set forth in Government Code Section 65915, et seq.

Extremely Low-Income Household. A household with a gross annual household Income that does not exceed 30% of AMI for Orange County as defined in California Health and Safety Code Section 50106.

Gross Annual Household Income. As defined in 25 Cal Code Regs. Section 6914 including any successor section thereto.

In-lieu Fee. The fee payable as an alternative to the construction of on-site affordable units.

Low-income Households. A household with a gross annual household income between 51% and 80% of AMI for Orange County as defined in California Health and Safety Code Section 50079.5.

Market-rate Unit. A dwelling unit offered on the open market at the prevailing market -rate for purchase or rental.

Moderate-income Household. A household with a gross annual household income between 81% and 120% of AMI for Orange County as defined in California Health and Safety Code Section 50093.

Ownership Project. A residential project that is intended to be sold for homeownership.

Rental Project. A residential project that is intended to be rented to tenants.

Residential Project. A project undertaken for the purpose of development of land for residential purposes that requires the issuance of a discretionary approval or permit, including a permit for construction, and that will include fifty (50) fifteen (15) or more dwelling units. 1037

Very Low-income Households. A household with a gross annual household income that does not exceed 50% of AMI for Orange County, as defined in California Health and Safety Code Section 50105.

Zone Change. Any proposed change to the official zoning m ap. The terms rezone and zoning amendment shall also have the same meaning.
13-330. Affordable Housing Requirements.

The following requirements and standards shall apply to any for rent residential project subject to this chapter:
(a) Project Threshold. The affordable housing requirements is applicable to any proposed residential project with fifty (50) fifteen (15) dwelling units or more. (b) Number of Affordable Units. The minimum number of dwelling units required to be set aside as affordable units and the required affordability level(s) of the units are specified as follow:
(1) Rental Projects. An applicant of a rental project shall fulfill their obligation with onsite production of affordable rental units at either low or very -low income levels and the minimum required number of units shall be calculated based on the proposed project’s base density.
a. For residential projects either rezoned to or located in the areas designated to be rezoned in the General Plan and/or within the boundaries of Figure 13-200.106 of section 13.200.106 at 60 or more dwelling units per acre: at least 11% 10% of the total applicable dwelling units proposed shall be affordable at the low-income level or at least 7% 5% at the very-low income level.
b. For residential projects either rezoned to or located in the areas to be rezoned in the General Plan and/or within the boundaries of Figure 13-200.106 of section

13.200.106 at under 60 dwelling units per acre: at least 6% of the total applicable dwelling units proposed shall be affordable at the low-income level or at least 4% at the very-low income level.
c. For any partial affordable unit calculated, the applicant shall pay a fractional in-lieu fee payment in accordance with the adopted in -lieu fee schedule or round up the calculation to the highest whole number.
(2) Ownership Projects. Onsite production of affordable units is not required for ownership projects. An applicant of an ownership project may choose to fulfill their obligation with 1038

payment of in-lieu fees, onsite production of affordable ownership or rental units, offsite production of affordable ownership or rental units, or dedication of land. a. The applicable in-lieu fee calculation for ownership residential projects shall be based on the requirements set forth in section 13-331(a). b. Should an applicant choose to fulfill their obligation with on-site production of affordable ownership units, the minimum set-aside requirement shall be at least 8% at the moderate-income level. All applicable requirements pursuant to this chapter for onsite production of affordable units shall also apply. (3) Residential Projects with Mixed Housing Types. If an applicant proposes a residential project that includes both ownership and rental units, the provisions of this chapter that apply to ownership rental projects shall apply to that portion of the development that consists of ownership rental units, while the provisions of this chapter that apply to rental projects shall apply to that portion of the development that consists of rental units. (4) Parcel or Lot Merger . An applicant shall not avoid the requirements of this chapter by submitting piecemeal planning permit applications. At the time of the application for first approval for the residential project, the applicant shall identify all contiguous property under common ownership and control. The applicant shall not be required to construct dwelling units upon the contiguous property at the time of the application for first approval; however, the applicant shall be required to include the contiguous property under common ownership or control in its affordable housing plan. The affordable housing agreement shall be recorded against the residential project and all contiguous property under common owne rship or control and shall require compliance with this chapter upon development of each contiguous property at such time as there are planning permit applications that would authorize residential units for the residential development and the contiguous property under common ownership or control.
(c) Covenant Period. The affordable units shall remain affordable for not less than fifty-five (55) years. a minimum period as specified in the subsection below or as stated in the affordable housing agreement or other agreement(s).
(1) For rental projects, the affordable units must remain affordable for not less than fifty - five (55) years. After fifty-five (55) years the affordability covenant may be removed only if the property is redeveloped as a non-residential use. 1039

(d) For ownership projects that fulfill their obligation with onsite production of affordable units, the affordable units must remain affordable for not less than forty-five (45) years. (e) Timing of Construction. The affordable units shall be constructed concurrently with or prior to the construction of market rate units.
(1) In phased developments, the affordable units shall be constructed in proportion to the number of dwelling units in each phase of the market rate project. The applicant shall provide a Construction Phasing Plan as part of their project plans for review by the director or their designee prior to the submittal of plans for a building permit. (f) Unit Size. The size of the affordable units shall be the same size as the market rate units but the final review authority may consider and approve affordable units no more than 15% smaller in square footage than the average square footage of the market rate units. (g) Bedroom Mix. The bedroom mix of the affordable units shall be proportional to the market rate units or as otherwise agreed in the affordable housing agreements or other approved agreements with the City.
(h) Design. All exterior and interior improvements including floor plan design, finishes/materials, etc. for the affordable units shall be comparable, if not same, to the market rate units. The affordable units shall have same access to and enjoyment of all community amenities/facilities in the residential project. The final review authority may consider a nd approve alternative exterior and/or interior design improvements for the affordable units as long as it is comparably the same to the market rate units.
(i) Location. Affordable Units shall be dispersed and evenly distributed throughout a residential project and not clustered in a particular area of the development or as otherwise agreed at the City’s discretion in an affordable housing agreement. Affordable units within a residential project that share a common entrance or access shall not have separate entrances or access for market rate and affordable units.
(j) Certificate of Occupancy . No certificate of occupancy will be issued for any corresponding market rate unit in a new residential project prior to completion of the required affordable units (including offsite) and/or payment of in-lieu fees.
13-331. Alternative Compliance Procedures.
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The following are the alternative options to fulfill the requirements of this chapter if onsite production of affordable units is determined by the director or their designee to be economically infeasible.
(a) In-Lieu Fees. The payment of in -lieu fees may be used to fulfill the affordable housing requirement for the following residential projects: Ownership projects of any size; rental projects with fewer than fifty (50) dwelling units and any fractional number of affordable units required.
(1) In-lieu fees shall be paid prior to the issuance of the first building permit for the residential project unless specified and/or agreed elsewhere in recorded agreement(s) with the City.

For phased developments, the applicant may pay a pro rata share of the in -lieu fee concurrently with the issuance of a building permit for each phase. (2) In-lieu fees shall be paid according to a fee schedule adopted by the City Council. The in- lieu fee schedule shall be adjusted periodically on an annual basis or as determined by the City Council or their designee and shall be adopted by resolution. (3) All in-lieu fees collected shall be deposited into the City’s housing trust fund. (b) Offsite Construction. Affordable units may be constructed offsite only upon a determination by the director or their designee that onsite production of affordable units is economically infeasible. If this alternative compliance option is chosen, then the offsite affordable unit s must be constructed prior to or concurrently with construction of the market rate residential project.
(1) The offsite affordable units shall comply with all applicable requirements pursuant to this chapter for onsite production of affordable units. (2) The offsite location shall be located within the City of Costa Mesa boundaries and shall be located within a reasonable distance from the market rate residential project that is subject to the affordable housing requirement.
(3) For residential projects for which a master plan is required, the affordable units may either be provided onsite or offsite on a separate parcel within the residential project’s approved master plan boundaries.
(c) Onsite Construction of Rental Units for Ownership Projects. An applicant of a market rate ownership project may construct affordable rental units concurrently with the market rate ownership units. The affordable rental units may be interspersed or located on a separate 1041

parcel within the market rate ownership project site and shall comply with all applicable requirements pursuant to this chapter for onsite production of units. (d) Land Dedication. An applicant may dedicate, without cost to the City, land (single or multiple parcels) within the City of Costa Mesa boundaries that is sufficient to accommodate the number of affordable units required by the market rate project. The following requirements are applicable to any land proposed to be dedicated to the City to fulfill the affordable housing requirement:
(1) The land to be dedicated to the City shall be located in the City of Costa Mesa; (2) The General Plan and zoning standards shall allow for residential use at a density sufficient to allow for the market rate project’s required number of affordable units to be constructed;
(3) The land shall be suitable in terms of size, configuration, and physical characteristics including existing utilities, streets, and other infrastructure improvements necessary to allow for the market rate project’s required number of affordable units to be constructed;
(4) The value of the land shall be equivalent or comparable to the in-lieu fee payment that would be applicable to the proposed residential project; (5) The applicant shall provide property related report(s) to demonstrate the suitability and value of the land to be dedicated including but not limited to title report, appraisal report, and environmental site assessment(s).
13-332. Affordable Housing Agreement and Affordable Housing Plan.

The applicant shall prepare and submit a draft affordable housin g agreement and affordable housing plan as part of the proposed residential project’s planning application(s). The director shall review and determine if the plan and agreement are complete and in substantial conformance with the requirements of this chapt er. This section shall not apply to residential projects where the developer fulfills their obligation with payment of in-lieu fees or land dedication. (a) Affordable Housing Plan Requirements. The applicant shall submit a plan detailing how the requirements o f this chapter will be implemented. The plan shall include the following information but not limited to:
(1) The location, structure, proposed tenure and size of the proposed market rate and affordable units;
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(2) The total number of affordable units to be provided and the calculations used to determine the number of required affordable units;
(3) A floor plan and site plan depicting the location of the affordable units; (4) The income level targets for each affordable unit;
(5) The mechanisms that will be used to assure that the affordable units remain affordable for the required term as specified in section 13-330(b); (6) A marketing plan for the process by which qualified households will be reviewed and selected to either purchase or rent affordable units; and (7) Construction phasing plan schedule with the anticipated completion and opening date and as applicable for phased residential projects.
(b) Affordable Housing Agreement Requirements. Upon final project approval, the developer shall execute and record an affordable housing agreement in a form approved by the City Attorney, prior to approval of any final or parcel map or issuance of any building permit, whichever occurs first, and that at a minimum specifies the number, type, location, size, and phasing of all affordable units, provisions for income certification and screening of potential purchasers or renters of units , and resale control mechanisms including the financing of ongoing administrative and monitoring costs, consistent with the approved affordable housing plan and any administrative procedures adopted pursuant to section 13-338. (1) An affordable housing agreement will not be required for projects which will be satisfying their affordable housing requirement through payment to the City of an in - lieu fee.
(2) The City Council, by resolution, may establish fees for the ongoing administration and monitoring of the affordable units, which fees may be updated periodically, as required. 13-333. Affordable Housing Trust Fund.

All in -lieu fees, promissory note repayments, shared appreciation payments and other funds collected under this chapter shall be deposited into a separate account to be designated as the City of Costa Mesa Affordable H ousing Trust Fund. The City may elect to deposit funds from other sources into this affordable housing trust fund. The moneys and all earnings from investments of the moneys in the affordable housing trust fund shall be expended exclusively to provide or assure continued provision of affordable housing in the City through including but not limited to acquisition, construction, development assistance, rent subsidies, or first -time 1043

homebuyer programs, and for the associated costs of administering and monito ring these programs.
13-334. Density Bonus.

Pursuant to the California State Density Bonus Law (Government Code Section 65915 , et seq), if the applicant is proposing to provide affordable units in exchange for an increase in density, concessions, incentives, or waivers/modifications of development standards, the affordable units required to fulfill the density bonus may also count as affordable units required in this chapter provided they also meet, or exceed, the requirements outlined in section 13-330. 13-335. Parking Requirements.

An applicant that provides affordable units pursuant to this chapter is not required to comply with the parking requirements set forth in section 13-85. A lower parking requirement may be allowed if supported by a parking study prepared by a traffic engineering firm with expertise in parking trends and demands, unless otherwise prohibited by state law. The parking study shall be reviewed and approved by the director or their designee. 13-336. Concurrent Processing.

Concurrent processing of planning application(s) and plan check application(s) may be allowed at the discretion of the director or their designee when the planning application(s) have been deemed complete. The applicant shall be required to enter into a hold harmless ag reement with the City prior to any concurrent review.
13-337. Compliance Monitoring.

To ensure that affordable units constructed pursuant to this chapter are properly maintained and continue to comply with the applicable provisions of this chapter, the ap plicant or responsible party at the time shall submit annual compliance reports to the City for review. In addition, the City shall conduct periodic onsite audits to ensure compliance with all applicable laws, policies, and agreements. The City Council may adopt fees for the costs of monitoring and compliance review, which shall be deposited into the affordable housing trust fund for that purpose. 13-338. Administrative Procedures.

The City Manager is authorized to adopt administrative rules, regulations, policies, guidelines, standards, and/or procedures necessary to implement the provisions of this chapter including but not limited to eligibility requirements and/or preference standards that may be applied in the selection of homebuyers and tenants.
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13-339. Enforcement.
(a) Violations of this chapter may be enforced by all available remedies at law or in equity, including, but not limited to those set forth in section 1-33 of this code. (b) Failure of any city official, employee, or agent to fulfill and/or enforce the requirements of this chapter shall not excuse any person or property from the requirements of this chapter.

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City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 24-102 Meeting Date: 4/2/2024
TITLE: SECOND READING OF ORDINANCE NO. 2024-02 AMENDING TITLE 13 (PLANNING,

ZONING AND DEVELOPMENT) OF THE COSTA MESA MUNICIPAL CODE TO ESTABLISH

AFFORDABLE HOUSING REQUIREMENTS FOR NEW RESIDENTIAL DEVELOPMENT PROJECTS

AND FEE RESOLUTION TO ESTABLISH THE AFFORDABLE HOUSING IN-LIEU FEE SCHEDULE DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING

DIVISION
PRESENTED BY: NANCY HUYNH, PRINCIPAL PLANNER
CONTACT INFORMATION: NANCY HUYNH, PRINCIPAL PLANNER, (714) 754-5609 RECOMMENDATION:

Staff recommends the Council:

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

2. Give second reading to and adop t Ordinance No. 2024-02 approving the Affordable Housing Ordinance and amending Title 13 to establish the affordable housing requirements for new residential development projects.

3. Adopt a fee resolution establishing the affordable housing in-lieu fee schedule.

BACKGROUND:

Based on recent housing data analyzed in the adopted 2021-2029 Housing Element, it has been shown that half of renters in Costa Mesa experience housing cost burdens. Because these lower income households are “priced out”, they tend to move into more crowded living conditions to reduce their housing expenses, move further away for cheaper housing at the exp ense of longer commute times, move out of the state, or unfortunately, enter into homelessness. An affordable, or inclusionary, housing policy is a key tool that cities throughout the United States have adopted to address housing affordability in their com munities. To address this affordable housing issue , Housing Program 2A (Inclusionary Housing Ordinance) of the Housing Element was included to “analyze the market impacts and potential affordability requirements for an inclusionary housing requirement for specific projects” in the City.
2021-2029 Housing Element
ATTACHMENT 3
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Item #: 24-102 Meeting Date: 03/19/2024

While the State Department of Housing and Community Development (HCD) approved the City’s adopted Housing Element, it has not been deemed in substantial compliance with State housing law until specific housing programs have been implemented. The 40 housing programs included in the Housing Element are intended to increase housing production while also addressing housing affordability for all income levels. T hese housing programs would remove ba rriers to housing developments and reform current zoning regulations that may currently encumber housing production in the City.

Implementation of Program 2A (adoption of an inclusionary housing ordinance) is required for the City to maintain compliance with State housing laws. If the City does not implement Program 2A, the State could find the City’s Housing Element out of compliance and in violation of State housing laws. This could leave the City vulnerable to legal challenges from the State and potent ially result in significant legal fees to defend against any litigation. In addition, the HCD has the ability to penalize the City with fines up to $100,000 per month if the City’s Housing Element is determined to be in violation of State housing law.

The City could also lose local control over land use and permitting decisions including the authority to issue building permits for any type of projects or improvements. Such has been the case in the City of Beverly Hills and more locally, San Clemente. Lastly, without a certified Housing Element, the City risks continued ineligibility for receipt of State and County funding sources or loan programs that could support housing programs including gap funding assistance for 100% affordable housing projects such as Jamboree Housing’s proposed Senior Center housing project.

Regional Housing Needs Assessment (RHNA)
California’s RHNA is the basis for determining the State’s future housing need by income category and is based on growth in population, households, and employment. For the 2021 -2029 6th Housing Element, the City was allocated 11,760 housing units to accomm odate the City’s projected housing needs, with more than half of those housing units required to be affordable. The City’s RHNA allocation is divided amongst four income categories, which are benchmarked on the County of Orange’s median income for a famil y of four. Table 1 below identifies the four income categories by which the City’s RHNA allocation is divided.

Table 1 – City of Costa Mesa RHNA by Income Category
Adoption of an Affordable Housing Ordinance (AHO) would assist in achieving the City’s RHNA for the very-low-, low-, and moderate-income categories, coupled with the other Housing Element programs intended to remove or reduce existing barriers and constraints to market-rate housing developments.

An “Incentive-Based” Program
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Item #: 24-102 Meeting Date: 03/19/2024

The City’s proposed Affordable Housing Program has been structured as an “incentive -based program”.

To implement the Affordable Housing Program, the City would rezone non -residentially zoned properties located along major corridors to allow for higher density housing with reduced parking requirements and the allowance of affordable rents for low income units to be calculated based on 80% of the area median income (AMI) where 60% is required under state density bonus law . Adding residential development as an allowed use at higher densities creates land value and incentivize s housing production overall . That value is coupled with a requirement to provide a portion of the project’s units as affordable housing. This program structure is in effect a local density bonus program.

The rezone and increase in density create opportunities for new homes that presently do not exist because of the lack of available properties that allow residential uses and the historically low maximum allowable density in Costa Mesa (maximum of 20 units per acre pursuant to the City’s General P lan).

Rezoning would create value and thus, incentivizing landowners to sell commercial and industrial properties to housing developers and incentivize housing developers to build.

DISCUSSION
City Council First Reading
On January 16, 2024, the City Council considered the Planning Commission’s recommendations, discussed the draft ordinance, and made further changes to the draft including:
 Establishing a minimum threshold project size for application of the affordability requirements;  Requiring the onsite production of affordable units for rental projects with over 50 units;  Allowing payment of in-lieu affordable housing fees for rental projects with fewer than 50 units;  Allowing payment of in-lieu affordable housing fees for ownership projects; and  Allowing a residential project for which the City enters into a development agreement to provide affordable housing or other community benefits equivalent to the Affordable Housing Ordinance requirements.

The City Council voted 4 -2 (Councilmember Chavez an d Mayor Pro Tem Harlan voting no; Councilmember Harper absent) to give first reading of Ordinance No. 2024 -02. The January 16, 2024 City Council agenda report, meeting video, and public comments are included in the links below:
 January 16, 2024 City Council Agenda Report:
https://costamesa.legistar.com/View.ashx?M=F&ID=12583737&GUID=46F95F9D-81D5-4D12- 9292-3369710C4230
 January 16, 2024 City Council Meeting Video:
https://costamesa.granicus.com/player/clip/4078?view_id=14&redirect=true  January 16, 2024 City Council Public Comments:
https://costamesa.legistar.com/View.ashx?M=E3&ID=1144863&GUID=584645D0-2AD4-4EB6- 1048
Item #: 24-102 Meeting Date: 03/19/2024

9E72-78009403D0D6
The City Council’s modifications to the draf t ordinance are included as Attachment 3. Their changes are shown as underlined and strikethrough. Table 2 below provides a summary of the Affordable Housing Program components and requirements included in the City Council’s first reading.

Table 2 – Proposed Affordable Housing Program Components and Requirements Program Component Proposed Requirements
Project Threshold 15 units
Number of Affordable Units/Required
Income – Rental Project
 60+ dwelling unit (du)/acre: 11% at low -
income or 7% at very-low income
 Under 60 du/acre: 6% at low -income or
4% at very-low income
Number of Affordable Units/Required
Income – Ownership Project Payment of in-lieu fee
Covenant Period – Rental At least 55 years
Covenant Period – Ownership 45 years (if producing affordable units onsite) Affordable Unit Minimum Size No more than 15% smaller than average market rate unit
Affordable Unit Bedroom Mix Proportional to market rate units Affordable Unit Location Evenly distributed/dispersed throughout residential project
Alternatives for Compliance
 Land dedication
 Offsite construction of affordable units
 Payment of in-lieu fees:
o Ownership: All ownership projects
can pay in-lieu fee
o Rental: Rental projects fewer than
50 units can pay in-lieu fee
 Onsite construction of rental units
(ownership only)
Incentives
 Allow residential uses in
commercial/industrial corridors
 Increased densities
 Allow low -income rents to be charged
based on 80% AMI vs. 60% AMI (required
by State density bonus)
 Reduced parking requirements
 Concurrent processing
City Council Study Session on Proposed In-Lieu Fee Amounts As part of their first reading discussion, the City Council directed staff to provide an in-lieu housing fee analysis for their review and consideration at the second reading of the ordinance. The proposed in - lieu fee analysis has been presented to the Cit y Council at a study session on February 27, 2024.

During the study session, staff and Keyser Marston Associates (KMA) presented the proposed fee schedule as well as an explanation of the fee calculations. The City Council also received public 1049
Item #: 24-102 Meeting Date: 03/19/2024

comments, asked staff and KMA follow -up questions, and provided their comments on the proposed fees and overall vision for the proposed AHO.

The February 27, 2024 City Council study session agenda report, meeting video, and public comments are included in the links below:
 February 27, 2024 City Council Agenda Report:
https://costamesa.legistar.com/View.ashx?M=F&ID=12707839&GUID=649FCC95-B510-4D3F- 92E7-9C400FFFDF63
 February 27, 2024 City Council Meeting Video:
https://costamesa.granicus.com/player/clip/4093?view_id=14&redirect=true  February 27, 2024 City Council Public Comments:
https://costamesa.legistar.com/View.ashx?M=E3&ID=1171565&GUID=B7C4B0DD-7AD7-4ADC- B8C3-392422409AF7
Public comments as well as the City Council’s feedback from the February 27, 2024 study session expressed the need to ensure Costa Mesa is competitive with nearby cities and ca n attract housing developers for the creation of housing in the community. Discussions included comparing the City’s proposed in-lieu fee amounts with the City of Santa Ana (who has seen success with their affordable housing program) and concerns that the City’s proposed fee amounts were too high. The City’s expert housing consultant, KMA, clarified that Santa Ana did not determine their in-lieu fee amounts based on a fee study or financial impact analysis ; and therefore, is not equivalent to their onsite p roduction requirements. In contrast, Costa Mesa’s proposed fee amounts are derived from the proposed AHO requirements so that the fees are equivalent to producing the affordable units onsite. While the City Council could consider lowering the in-lieu fee amounts, doing so would result in less onsite production of affordable units, and housing developers would likely choose to pay the in -lieu fees instead. KMA also recommends that the AHO requirements should, therefore, also be lowered for the fee amount to be equivalent to the onsite production of affordable units.

Fee Resolution to Establish the Affordable Housing In-Lieu Fee Amounts Included with this Agenda Report is a fee resolution to adopt the in -lieu fee amounts (as shown in Table 3 below) with adoption of the AHO. The proposed fee amounts are based on the proposed AHO requirement set aside percentages.

Table 3 – Proposed Affordable Housing In-Lieu Fee Amounts 1050
Item #: 24-102 Meeting Date: 03/19/2024

To provide the City Council w ith additional comparisons of other cities’ affordable housing in -lieu fee amounts, refer to Table 4. As shown in the table, there is no standard to establish an affordable housing in-lieu fee amount or fee structure. The in-lieu fees could be based on a sliding scale (as proposed in the AHO), flat fee per square foot, incremental increase over time, or a formula based on certain variables. The City of Encinitas more recently increased their fees from $20 per square foot to $23.79 per square foot . Encinitas also adjusts their fee ad ministratively based on the percentage change in the most current Engineering News Record Construction Cost Index for the Los Angeles region. The City of San Diego adopted a program that included an incremental increase to their in-lieu fee amounts each fiscal year with the current fee set at $25 per square foot.

Table 4 – Comparison of Other Cities In-Lieu Fee Amounts Encinitas
 1 – 6 units: sliding scale1
 7+ units: $23.79 per sq. ft.
 Affordability Requirement:
o 10% Very Low or 15% Low
Irvine
 Formula based and calculated per project2
 Affordability Requirement:
o 5% Very Low + 5% Low + 5% Moderate
Long Beach
 Rental: $38 per sq. ft.
 Ownership: $29.10 per sq. ft.
 Affordability Requirement:
o 11% Very Low – Rental
o 10% Moderate – Ownership
Oceanside
 2023 in-lieu fee set at $15 per sq. ft.
 2024 in-lieu fee increased to $20 per sq. ft.
 Affordability Requirement:
o 10% Low – Rental
o 10% Moderate – Ownership
Santa Monica  Rental: $35.70 per sq. ft.
 Ownership: $41.70 per sq. ft.
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Item #: 24-102 Meeting Date: 03/19/2024

 Affordability Requirement:
o 5% to 30% Very Low, Low, and Moderate
San Diego
 Incremental increase from July 1, 2020 through
June 30, 20243
 2024 in-lieu fee increased to $25 per sq. ft.
 Affordability Requirement:
o 10% Very Low or Low – Rental
o 10 to 15% Moderate – Ownership
1 Sliding scale is based on a percentage of the adopted in -lieu fee amount depending on the number of units. For example, one unit project would be required to pay 14% of the in-lieu fee dollar amount. 2 Formula is based on land value, density, and percentage share of cost related to affordable units not being produced. 3 Prior to July 1, 2020, the in -lieu fee was established at $12.73 per sq. ft. and has increased every fiscal year (2021 - $15.18, 2022 - $17.64, 2023 – $20.09)
Stakeholders Meeting on Proposed In-Lieu Fee Amounts
At the direction of the City Council, s taff met with several housing developers in early March for additional feedback on the proposed in -lieu fee amounts. The housing developers included representatives from Irvine Company, City Ventures, Legacy, Sakioka Company, and Meritage Homes.

These housing developers specialize in both for-sale homes within in-fill locations, and developers with experience in rental housing.

The housing developers provided their general thoughts on the City’s proposed ordinance. The developers were supportive of the Planning Commission’s recommendation to reduce the affordable requirement for the 60+ du/ac rental projects to 10% low or 5% very-low income. They stated that if the ordinance is adopted, housing developers will likely utilize the State’s Density Bonus Law given the flexible incentives and waivers provided under the law. The State’s Density Bonus would help developers achieve their project goals and return on investment. When asked about suggestions for any additional incentives that the City could provide, the developers identified expedited processing to reduce the entitlement and plan check time which would allow developers to com mence construction at a faster pace and therefore reduce carrying costs. In this regard, the currently proposed AHO allows housing developers to simultaneously process construction plans while also processing their required entitlement planning applications.

The housing developers indicated that a high in -lieu fee amount would encourage the production of affordable housing units onsite. One of the for -sale housing developers with recent experience in developing for-sale units in Huntington Beach indicated that they did have success there with producing affordable units onsite within their market -rate project. However, that developer also mentioned that property owner equity is more difficult to build on the for -sale affordable units, as compared to market rate ownership. As such, they would prefer to pay an in -lieu fee. Developers stated that an in-lieu fee amount between $10 and $15 per leasable/saleable square feet would be the “breaking point” for a land development deal. However, it was acknowledged that it is difficult to determine an appropriate in-lieu fee amount because each housing project would have different variables (e.g., land costs, permitting review time, site preparation, and construction costs, etc.) . In addition, changes in interest rates c an significantly impact a developer’s proforma. The developers also commented on the proposed “sliding scale fee” approach. While they understood th at the sliding scale is intended to protect smaller projects with less units to “spread the cost”, they felt that it may be punitive towards higher density housing projects that are building more units in the City. A flat fee, regardless of project 1052
Item #: 24-102 Meeting Date: 03/19/2024

size, was preferred. The developers did appreciate the option to pay a fractional in-lieu fee in a situation where the number of required units would result in a fraction.

State Density Bonus and Local Affordable Housing Program Strategies It is important to note that residential developers can choose by right to use California’s Density Bonus Law, which is cod ified in Government Code §65915 et seq. (State Density Bonus) for projects that adhere to the minimum criteria defined below:
 5% units restricted to “Very Low Income”
 10% units restricted to “Low Income” rental units or 10% “Moderate Income” for sale units  100% affordable units (excluding manager’s units) with a maximum of 20% moderate units  10% “Very Low Income” units restricted for transitional foster youth, disabled veterans, or  homeless
 20% “Low Income” units for student housing at accredited colleges.  A senior housing development.
 An age-restricted mobile home park
 The project donates at least one acre of land to the jurisdiction for very low -income units, the land has the appropriate permits and approvals, and has access to needed public facilities  Projects which include a childcare facility
State Density Bonus allows for increased housing density on a property above the maximum allowed under the City’s General Plan Land Use Element, a statutorily defined number of concessions/incentives, and potentially reductions and/or waivers to the City’s development standards.

The draft affordable housing ordinance is proposed to be designed to specifically include similar and in certain situations potentially greater housing development incentives than allowed by State Density Bonus Law. For example, the proposed AHO, while State Density Bonus requires the rents to be calculated based on 60% of AMI. In addition, the City’s amended parking standards are proposed to be based on demonstrated market demand. The intention of the AHO is to create sufficient incentives through the proposed zoning code amendments to incentivize affordable housing construction that serves the local households at all income levels and is also consistent with the communities housing values.

Costa Mesa Community’s Input on Need for Affordable Housing More recently with the passage of Measure K (Ordinance to Revitalize Commercial and Industrial Areas and Protect Residential Neighborhoods), the Costa Mesa community recognized the impact of high housing costs in the City that has made it challenging to at tract teachers, police officers, firefighters, and other professionals. During the community survey polling for the Measure K ballot initiative, the majority of Costa Mesa residents surveyed were in favor of addressing the City’s housing needs as well as supporting more affordable housing options for all income levels. The Costa Mesa community has also identified that there is a benefit to provide an opportunity for current and future generations to find affordable housing in the community they grew up in. In the same community survey polling, residents also expressed support for an inclusionary housing requirement. The survey results from the community polling included the following findings:
 81% in favor of addressing housing needs;
 74% in favor of providing housing at all income levels for seniors, families, and young adults; 1053
Item #: 24-102 Meeting Date: 03/19/2024

 83% in favor of helping ensure more affordable housing is available for middle income and working-class families; and
 71% in favor of requiring up to 15% of new and redeveloped housing units to be affordable housing.

Since the passage of Measure K, the Planning Division has also seen an increase in inquiries and interest in developing housing projects along the corridor areas . The Planning Division has received approximately 30 inquiries and met with many of these prospective housing developers which include City Ventures , Meritage Homes, and Toll Brothers . While Measure K promotes more housing development opportunities, it does not directly address the City’s housing affordability issues.

PUBLIC NOTICE:

Pursuant to Government Code Section 36933, a summary of the proposed Ordinance was published once in the newspaper no less than five days prior to the April 2, 2024 second reading. A summary of the adopted ordinance will also be published within 15 days after the adoption.

Pursuant to Government Code Section 66016, the proposed fee schedule and fee study was made available to the public 15 days prior to the April 2, 2024, City Council meeting.

Public comments received prior to the April 2, 2024 City Council meeting may be viewed at this link:

CITY OF COSTA MESA - Calendar (legistar.com)
ALTERNATIVES:

The City Council may give second reading and adopt the Ordinance as proposed, modify the Ordinance, or not adopt the Ordinance. If the City Council chooses to make substantive modifications to the Ordinance, the modified Ordinance would need to return at a future meeting for second reading and adoption.

Similarly, the City Council may adopt the fee resolution, modify the proposed fee schedule, or not adopt the fee resolution.

The City Council may also consider implementing the in-lieu fee schedule incrementally, similar to the City of San Diego. The City of San Diego set the in-lieu fee at a lower amount and over a five -year period, increased the fee to its eventual rate. The fee increased $12.27 over the five-year period. The fee is then updated annually based on the annual increase in the Construction Costs Index (CCI) published by Engineering News Record for Los Angeles, or similar construction industry index selected by the City Manager if the CCI index is discontinued. See Attachment 6, Information Bulletin 532, Requirements for Inclusionary Affordable Housing , City of San Diego . The Council could consider setting the fee at a lower rate and establish a schedule for increases over any specified period of time until the preferred maximum fee amount is met. For example, the Council may evaluate a fee of $12 in year one, with increase s over a 10 -year period to an eventual amount of $22.00 per applicable square foot and include an annual update to the fee based on CCI or similar construction ind ustry index.
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Item #: 24-102 Meeting Date: 03/19/2024

FISCAL REVIEW:

Should the City Council adopt the Affordable Housing Ordinance and in-lieu housing fee resolution, the City could potentially receive funding from payment of fees that would be deposited into a Housing Trust Fund to support and promote affordable housing programs in the City, including the administration of the City’s Affordable Housing Program.

LEGAL REVIEW:

The proposed Ordinance, fee resolution, and this report have been prepared in conjunction with and approved by the City Attorney’s Office.

CONCLUSION:

Addressing housing needs for all income levels has been identified as one of the main housing goals by the Costa Mesa community and City Council. The community profile described in the 2021-2029 Housing Element showed that approximately half of Costa Mesa residents are overpaying for housing costs due to the lack of housing options especially affordable housing. Adoption of an Affordable Housing Ordinance would be a step towards addressing this issue coupled with the other Housing Element programs intended to remove or reduce existing barriers and constraints to market-rate housing developments. Furthermore, the ordinance would help towards achieving the City’s RHNA for the very-low-, low-, and moderate-income categories. Its adoption would also fulfill the objective of Program 2A of the Housing Element and help achieve City Council’s goal to “diversify, stabilize and increase housing to reflect community needs”. 1055

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-268 Meeting Date: 6/18/2024
TITLE:

APPROVAL OF AMENDMENT TO MERCY HOUSE AGREEMENT FOR CITYWIDE RENTAL

ASSISTANCE PROGRAM
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: NATE ROBBINS, NEIGHBORHOOD IMPROVEMENT MANAGER CONTACT INFORMATION: NATE ROBBINS, NEIGHBORHOOD IMPROVEMENT MANAGER (714) 754-5274
RECOMMENDATION:

Staff recommends the City Council:

1. Approve Amendment No. 5 to the Subrecipient Agreement with Mercy House Living Centers increasing the compensation by $500,000 for a total not-to-exceed amount of $2,050,000 for the administration of the City’s Rental Assistance Program for very low-income households.

2. Authorize a budgetary increase of $500,000 to be funded by recently granted FEMA reimbursements.

3. Authorize the City Manager and the City Attorney to make all contract amendments as needed, and execute the contract amendment(s).

BACKGROUND:

On October 6, 2020, the City of Costa Mesa (City) executed a Subrecipient Agreement (Agreement) with Mercy House Living Centers (Mercy House) for a Not-To-Exceed (NTE) amount of $180,321 in CDBG-Coronavirus (CDBG-CV) funds to provide direct financial assistance to very low-income Costa Mesa households at risk of homelessness due to non-payment of rent.

On June 15, 2021, the City and Mercy House executed Amendment #1 to the Agreement, increasing the compensation by $150,000 for an updated NTE amount of $330,321 in CDBG-CV funds and extending the term through June 30, 2022.

On June 21, 2022, the City and Mercy House executed Amendment #2 to the Agreement, increasing the compensation by $62,312 for an updated NTE amount of $392,633 in CDBG-CV funds and extending the term through June 30, 2023.

On November 9, 2022, the City and Mercy House executed Amendment #3 to the Agreement,

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On November 9, 2022, the City and Mercy House executed Amendment #3 to the Agreement, increasing the compensation by $500,000 in American Rescue Plan Act (ARPA) funds for an updated NTE amount of $892,633 and extending the term through December 31, 2023.

On June 20, 2023, the City and Mercy House executed Amendment #4 to the Agreement, increasing the compensation by $1,050,000 utilizing available ARPA funds for an updated not-to-exceed amount of $1,942,633 ($392,633 in CDBG-CV and $1,550,000 in ARPA) and extending the term through December 31, 2024.

As of June 5, 2024, Mercy House expended all awarded funds to assist 113 very low-income Costa Mesa households with direct financial assistance to avoid eviction and retain their housing. Mercy House has continued to accept applications and has a current waiting list of 36 at-risk households.

Nineteen (19) of these applications have been preliminarily reviewed and the households are requesting $118,077 in rental assistance ($6,215 per household). The remaining 17 applications are temporarily on hold and have not been reviewed. Assuming these requests trend similarly, Mercy House estimates the amount of assistance requested by these 17 households to be roughly $106,000 for a total current shortfall of $224,077. Mercy House is estimating the need for an additional $225,000 to continue to accept new applications and provide rental assistance through the end of the calendar year.

Therefore, based on current and future estimations, staff recommends increasing Mercy House’s compensation by $500,000 for an updated NTE amount of $2,442,633 to assist the 36 households currently requesting assistance as well as up to 36 additional households over the next six (6) months, if needed.

ANALYSIS:

Mercy House is a local 501(c)(3) organization and has over thirty (30) years of experience providing services to homeless and at-risk households. Mercy House has been a strong partner in the City’s work to provide high-quality programs and services to our community, including the successful operation of the Costa Mesa Bridge Shelter, administration of a rental assistance program, and on- site service provision at the newly converted Mesa Vista Apartments (formerly Motel 6). Over the past four (4) years, Mercy House was awarded and has successfully expended nearly $2 million in rental assistance to keep 113 at-risk households in their homes.

Below are some highlights of the Rental Assistance Program operated by Mercy House:

PURPOSE
· To provide Costa Mesa households with financial assistance to 1) maintain housing at risk of being lost or 2) secure permanent housing for those experiencing homelessness.

ELIGIBILITY
· All Costa Mesa residents earning at or below 50% of the Area Median Income (AMI) are eligible to apply. The income limit is $55,250 per year for a one (1) person household and $78,900 per year for a four (4) person household.

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ASSISTANCE
· The Program will provide a maximum of six (6) months of rental assistance with no cap on the amount of assistance.
· The Program can provide up to six (6) months of rental arrears, which do not count toward the maximum of six (6) months of rental assistance.
· While enrolled in the Program, no household will pay more than 30% of their adjusted gross income toward rent.

STAFFING
· Mercy House staff assigned to the Program are fluent in English and Spanish. · Mercy House staff are expected to respond to requests for assistance within 72 hours.

The drastic rise in housing costs over the past several years has made it difficult for many households to afford rent, especially when facing financial hardship due to an unexpected life event.

The financial assistance provided by the City to our most vulnerable residents has made a significant impact in mitigating the number of Costa Mesa residents experiencing homelessness. Despite these efforts, requests for rental assistance have not diminished as there is still a great need in our community for direct financial assistance to offset housing costs and maintain housing affordability.

ALTERNATIVES:

The Council can elect to deny the request for additional funds, which would cease operation of the City’s rental assistance program.

FISCAL REVIEW:

The rental assistance program was funded from CDBG-CV and later the City’sARPA allocation.

However, both these sources of funds are fully expended or committed. Therefore, the additional requested amount of $500,000 can be funded from newly received FEMA reimbursements of $837,396, received just last week, for prior year expenditures incurred during the COVID-19 crisis.

These funds were deposited into the FY 2023-2024 General Fund.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the following City Council goal:
· Diversify, Stabilize and Increase Housing to Reflect Community Needs

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CONCLUSION:

Staff recommends the City Council:

1. Approve Amendment No. 5 to the Subrecipient Agreement with Mercy House Living Centers increasing the compensation by $500,000 for a total not-to-exceed amount of $2,050,000 for the administration of the City’s Rental Assistance Program for very low-income households.

2. Authorize a budgetary increase of $500,000 to be funded by recently granted FEMA reimbursements.

3. Authorize the City Manager and the City Attorney to make all contract amendments as needed, and execute the contract amendment(s).

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-226 Meeting Date: 6/18/2024
TITLE:

FIRST READING OF ORDINANCES TO AMEND CHAPTERS 2 AND 3 OF TITLE 4 (BICYCLES); AND CHAPTERS 1 THROUGH 21 OF TITLE 10 (MOTOR VEHICLE TRAFFIC) OF THE COSTA

MESA MUNICIPAL CODE AND PURSUANT TO THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”), FIND THE ORDINANCE IS NOT A "PROJECT" AND

FURTHER, THAT IT IS EXEMPT FROM THE PROVISIONS OF CEQA PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3)
DEPARTMENT: PUBLIC WORKS DEPARTMENT AND POLICEDEPARTMENT PRESENTED BY: BRETT ATENCIO THOMAS, ACTIVE TRANSPORTATION COORDINATOR

AND BRYAN WADKINS, POLICE CAPTAIN
CONTACT INFORMATION: BRETT ATENCIO THOMAS, ACTIVE TRANSPORTATION COORDINATOR, (714) 754-5343
RECOMMENDATION:

Staff and the Active Transportation Committee recommend the City Council:

Introduce for first reading, Ordinance Nos. 2024-xx and 2024-xx, to amend Chapters 2 and 3 of Title 4 (Bicycles) and Chapters 1 through 21 of Title 10 (Motor Vehicle Traffic), respectively, of the Costa Mesa Municipal Code to be in compliance with current California laws related to bicycles and current practices and procedures.

BACKGROUND:

AB 1909, titled the Bicycle Omnibus Bill, was approved by the Governor of the State of California on September 16, 2022. This bill was designed to bring the California Vehicle Code (CVC) into congruence with current bicycle riding practices within the state, as well as to increase the safety of individuals riding bicycles. Upon approval of AB 1909, the CMMC was no longer in compliance with the CVC, prompting the need for a revision to the Municipal Code. On February 7, 2023, the City Council gave first reading to and introduced Ordinance No. 2023-02 to repeal Chapter 1 (Bicycles and Motorized Bicycle Licensing) of Title 4 (Bicycles) of the CMMC to comply with current California law. On February 21, 2023, the City Council adopted Ordinance No. 2023-02 to repeal Chapter 1 (Bicycles and Motorized Bicycle Licensing) of Title 4 (Bicycles) of the CMMC.

Subsequently, Assembly Bill 2147 (AB 2147), the Freedom to Walk Act, was signed by the Governor of the State of California on September 30, 2022, which decriminalizes jaywalking when the roadway is safe to cross. To ensure compliance with the CVC and provisions with AB 1909 and AB 2147, staff further reviewed CMMC Title 4 (Bicycles) and Title 10 (Motor Vehicle Traffic) in order to bring the

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CMMC into compliance with the CVC.

SUMMARY:

The State of California passed a new law, Assembly Bill 1909 (AB 1909), the Bicycle Omnibus Bill, which made several changes to the California Vehicle Code (CVC) pertaining to the lawful operation of bicycles. Following the passage of the bill, the City Council repealed Chapter 1 (Bicycle and Motorized Bicycle Licensing) of Title 4 of the Costa Mesa Municipal Code (CMMC) on February 7, 2023.

The CMMC has several remaining bicycle-related provisions that are not in compliance with the CVC as well as some bicycle-related and transportation provisions that are no longer relevant.

Proposed amendments to Title 4 and Title 10 are recommended to bring the CMMC into compliance with the CVC and current bicycle and transportation practices within the community. Additional provisions were added to enhance bicycle safety on roadways and sidewalks based on the recent proliferation of e-bike usage.

ANALYSIS:

Following the State’sapproval of AB 1909 and subsequent approval of AB 2147, several provisions within the CMMC were no longer in compliance with the CVC. Furthermore, the public’scompliance and the City’senforcement of many existing transportation-related provisions of Title 4 and Title 10 of the CMMC that are unique to the City have been minimal for many years as the result of technological changes and cultural shifts. Therefore, staff identified bicycle and pedestrian-related provisions of Title 4 and Title 10 that are no longer relevant or not consistent with state law and are not enforceable.

The City Attorney’s Office, Police Department, and Public Works collaborated to identify which statutes were recommended for revision or removal in order to bring the CMMC into compliance with current CVC, technology and culture. Additionally, based on community and City Council input, staff incorporated code revisions to address the recent proliferation of e-bikes in order to enhance bicycle safety on roadways and sidewalks.

On March 6, 2024, Public Works and Police Department staff presented proposed revisions to Title 4 and Title 10 of the CMMC to the Active Transportation Committee at their Special meeting. Following comments received at the meeting, staff made further revisions to the proposed amendments, which were presented to the Active Transportation Committee at a Special Meeting on April 17, 2024.

Further revisions were made to proposed amendments to Title 4 and Title 10 of the CMMC following the Special Meeting. The Active Transportation Committee voted to recommend proposed amendments to Title 4 and Title 10, included as Exhibit A to Attachments 1 and 2, respectively, at their regular May 1, 2024 Meeting.

The major proposed updates include:
· § 4-22: bicycle definitions were updated to include electric bicycles as defined in CVC 312.5. · § 4-23: bikeway definitions were updated to be congruent with the Caltrans Highway Design Manual Chapter 1000.
· § 4-26: rules of the road were updated to be congruent with AB1909 and the subsequent

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· § 4-26: rules of the road were updated to be congruent with AB1909 and the subsequent revisions to CVC 21209, 21208, 21202, 21200, and 21204. · § 4-26(g) is an added provision prohibiting riding a bicycle in an unsafe manner or speed on the sidewalk or roadway.
· 4-26(h): is an added provision requiring bicyclists to yield the right of way to pedestrians on the sidewalk.
· 4-26(j): is an added provision requiring bicyclists to yield the right of way when entering a roadway or sidewalk.
· § 4-32 and § 4-36: were updated to ensure proper parking of bikes in the public right of way. · § 10-156: overtaking and passing of a person riding a bicycle was added to be congruent with AB1909 and the subsequent revision to CVC 21760.
· § 10-168: when pedestrians must use crosswalk was updated to be congruent with AB2147 and the subsequent revision to CVC 21955(a)(b).
· § 10-184(a): was updated to account for “crosswalkdaylighting”and be congruent with AB413 and the subsequent revision to CVC 22500(n)(1)(A).

Based upon this collaborative review and community input received at three Active Transportation Committee meetings, the Active Transportation Committee and staff request City Council approval of the proposed amendments to the CMMC Title 4 and Title 10 (Motor Vehicle Traffic).

ALTERNATIVES:

The City Council could elect to not approve the proposed ordinances, however, the City would no longer be able to enforce compliance of several provisions as it would conflict with state law.

FISCAL REVIEW:

There is no fiscal impact to revising Chapters 2 and 3 of Title 4 (Bicycles); and Chapters 1 through 21 of Title 10 (Motor Vehicle Traffic) of the Costa Mesa Municipal Code.

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this report and proposed Ordinances, and approves them 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

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CONCLUSION:

Staff and the Active Transportation Committee recommend the City Council:

Introduce for first reading, Ordinance Nos. 2024-xx and 2024-xx to amend Chapters 2 and 3 of Title 4 (Bicycles) and Chapters 1 through 21 of Title 10 (Motor Vehicle Traffic), respectively, of the Costa Mesa Municipal Code to be in compliance with current California laws related to bicycles and current practices and procedures.

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ATTACHMENT 1

Ordinance No. 2024-xx Page 1 of 3

ORDINANCE NO. 2024-xx

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA

MESA AMENDING CHAPTERS II (BICYCLE TRAFFIC) AND III
(BICYCLE PARKING RACKS, SECURING OF BICYCLES) OF TITLE 4 (BICYCLES) OF THE COSTA MESA MUNICIPAL CODE, RELATING TO

BICYCLE TRAFFIC AND PARKING

WHEREAS, the City of Costa Mesa, pursuant to its police power, may enact regulations for the public peace, morals, and welfare of the City; and

WHEREAS, the City of Costa Mesa desires to amend the provisions of the Costa Mesa Municipal Code to impose regulations related to health, safety and welfare; and

WHEREAS, the City Council of the City of Costa Mesa hereby finds that to promote and protect the public health, safety and welfare, various pedestrian, bicycle and other transportation related provisions of the Municipal Code should be revised to be consistent with the California Vehicle Code.

WHEREAS, the City of Costa Mesa, pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) has determined that the ordinance is not a "project" and further, that it is exempt from the provisions of CEQA pursuant to CEAQ Guidelines Section 15061(b)(3) (because it can be seen with certainty that the adoption of this Ordinance will not have an effect on the environment) such that no environmental review under CEQA is required; and

WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

NOW, THEREFORE , THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Chapters II (Bicycle Traffic) and III (Bicycle Parking Racks, Securing of Bicycles) of Title 4 (Bicycles) of the Costa Mesa Municipal Code ar e each hereby amended as follows:

See attached Exhibit “A”.

Section 3. Environmental Compliance . Pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) the ordinance is not a “project” and further, that it can be seen with certainty that there is no possibility that the ordinance in question may have a significant effect on the environment, either directly or indirectly, and that therefore no environmental review under the CEQA is required, pursuant to CEQA Guidelines Section 15061(b)(3). 1064
ATTACHMENT 1

Ordinance No. 2024-xx Page 2 of 3

Section 4. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance.

Section 5. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each c hapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional.

No portion of this Ordinance shall supersede any local, State, or Federal law, regulation, or codes dealing with life safety factors.

Section 6. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 7. Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be posted or published in the manner as required by law.

PASSED AND ADOPTED this XX day of XX, 2024.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney

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ATTACHMENT 1

Ordinance No. 2024-xx Page 3 of 3

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 Ordinance No. 2024-XX was duly introduced for first reading at a regular meeting of the City Council held on the 4 th day of June 2024, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the ___day of June 2024, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this _____ day of June, 2024.

________________________________

BRENDA GREEN, CITY CLERK

(SEAL)

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Title 4
Bicycles
Chapter I
(RESERVED)
Chapter II

BICYCLE TRAFFIC
§ 4-22 “Bicycle” defined.
(a) A “bicycle” is a device upon which any person may ride, propelled by human power through a belt, chain or gears, and having either two or three wheels in tandem or tricycle arrangement. (b) An “electric bicycle” is a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts.
(1) A “class 1 electric bicycle,” or “low-speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour. (2) A “class 2 electric bicycle,” or “low-speed throttle-assisted electric bicycle,” is a bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour. (3) A “class 3 electric bicycle,” or “speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour, and is equipped with a speedometer. (Ord. No. 73-20, § 2, 6-4-73)
§ 4-23 “Bicycle lane” defined.

A “bicycle lane” shall be that portion of a public street distinctively and clearly marked on the pavement, and having appropriate identifying and traffic signs, separating that portion of the public street to be traversed by bicycles from the portion to be traversed by motor vehicles. Bikeways include Class I, Class II, Class III, and Class IV as outlined in the CalTrans Highway Design Manual. (Ord. No. 73-20, § 2, 6-4-73)
§ 4-24 Bicycle lanes established.

The following bicycle lanes are established on the following public streets in the City of Costa Mesa. (a) On the north side of Arlington Drive, between the curb face and eight feet south of the curb from Fairview Road to the east property line of the Maude B. Davis School at all times. (b) On the east side of California Street between the curb face an d eight feet west of the curb from Gisler Avenue to Michigan Avenue at all times.
(c) On the south side of Hamilton Street between th e curb face and eight feet north of the curb from Wallace Avenue to Meyer Place at all times.

EXHIBIT A
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(d) On the east side of Santa Ana Avenue between the curb and eight feet west of the curb face from 20th Street to 23rd Street at all times.
(e) On both sides of Estancia Drive be tween the curb and four feet to five feet out on the street from Adams Avenue to a point 680 feet north of Joann Street at all times. (f) On the east side of Mendoza Driv e between the curb and eight feet westerly from Baker Street to EI Camino Drive between 2:00 p.m. and 4:00 p.m. weekdays, except holidays. (g) On the west side of Mendoza Drive between the cu rb and eight feet easterly from Baker Street to EI Camino Drive between 7:00 a.m. and 9:00 a.m. weekdays, except holidays. (Ord. No. 73-20, § 2, 6-4-73)

§ 4-25 Modification, deletion or addition to bicycle lanes; master plat plan of lanes.

The bicycle lanes established by this chapter may be modified, deleted, or added to from time to time by resolution of the city council. A master plat plan of bicycle lanes throughout the City of Costa Mesa shall be maintained and kept current by the transportation services engineermanager, and each modification, deletion or addition established by resolution shall be appropriately indicated on said platplan. Said plat plan shall be accessible to members of the public during normal business hours of the City of Costa Mesa. (Ord. No. 73-20, § 2, 6-4-73)
§ 4-26 Rules of the road.
(a) It is unlawful for any motor vehicle to drive in, over or upon any bicycle lane established by this chapter or established by any resolution as herein provided for, except for the purpose of ingress or egress to adjacent property and except for crossing at intersecting streets.

No person shall drive a motor vehicle in a bicycle lane established on a roadway pursuant to Section 21207 except as follows:
(1) To park where parking is permitted.
(2) To enter or leave the roadway.
(3) To prepare for a turn within a dist ance of 200 feet from the intersection. (4) Motorized bicycles as defined by the California Vehicle Code Section 406(a) and electric bicycles as defined in § 4-22(b) are permitted in a bicycle lane, at a speed no greater than is reasonable or prudent, and in a manner that does not endanger the safety of other bicyclists or the rider.

(b) It is unlawful for any bicycle, as herein defined, to drive in, over or upon that portion of the public street outside of a bicycle lane as established by this chapter or any resolution hereinafter passed by the city council, except for the purposes of ingress and egress to the bicycle lane, and except for street crossings at intersections.

(c) Except as herein provided, the rules of the road established by the Vehicle Code and Article 4 of 1068
Chapter 1, Division 11, sections 21200 through and including 21207 California Vehicle Code shall be in full force and effect on the city streets of the City of Costa Mesa, as though fully set forth in this chapter.

Whenever a bicycle lane has been established on a roadway pursuant to § 4-23, any person riding a bicycle upon the roadway at a speed less than the normal speed of traffic moving in the same direction at that time shall ride within the bicycle lane, except that the person may move out of the lane under any of the following situations:
(1) When overtaking and passing another bicycle, vehicl e, or pedestrian within the lane or about to enter the lane if the overtaking and passing cannot be done safely within the lane. (2) When preparing for a left turn at an inte rsection or into a private road or driveway. (3) When reasonably necessary to leave the bicy cle lane to avoid debris or other hazardous conditions. (including, but not limited to, fixed or moving objects, vehicles, bicycles, pedestrians, animals, surface hazards, or substandard width lanes) that make it unsafe to continue in the bicycle lane. (4) When approaching a place wher e a right turn is authorized. (cd) Except in established bicycle lanes, it is unlawful for any person to ride a bicycle on any public street, roadway or highway anywhere except as near the right-hand curb or edge of the roadway as practical or in the case of streets, roadways or highways carrying traffic in one direction only, as near as practical to the far left-hand or far right-hand curb or edge of said roadway, and in each instance exercising due care when passing a standing vehicle or one proceeding in the same direction.No person riding a bicycle shall leave a bicycle lane until the movement can be made with reasonable safety and then only after giving an appropriate signal in the event that any vehicle may be affected by the movement.

(de) Notwithstanding the provisions of section 10-134 of the Costa Mesa Municipal Code, whenever a person is riding a bicycle upon a sidewalk, such person shall yield the right-of-way to any pedestrian, bicyclist or vehicle exiting or entering any driveway or alley. Any person riding a bicycle upon a roadway at a speed less than the normal speed of traffic moving in the same direction at that time shall ride as close as practicable to the right-hand curb or edge of the roadway except under any of the following situations:
(1) When overtaking and passing another bicycle or vehicle proceeding in the same direction. (2) When preparing for a left turn at an inte rsection or into a private road or driveway. (3) When reasonably necessary to avoid conditions (including, but not limited to, fixed or moving objects, vehicles, bicycles, pedestrians, animals, surface hazards, or substandard width lanes) that make it unsafe to continue along the right-hand curb or edge, subject to the provisions of Section 21656 of the California Vehicle Code. For purposes of this section, a “substandard width lane” is a lane that is too narrow for a bicycle and a vehicle to travel safely side by side within the lane. (4) When approaching a place wher e a right turn is authorized. (5) When the roadway carries traffic in one directio n and has two or more marked traffic lanes, then the person may ride as near the left-hand curb or edge of that roadway as practicable. (e) No person shall ride a bicycle in a manner or at an unreasonable speed upon a roadway or sidewalk 1069
which endangers the safety of pedestrians, the rider, motorists or property. Bicycle riders will ride in a manner and at speeds that are reasonable and prudent having due regard for weather, visibility, traffic conditions, and the surface and width of the roadway or sidewalk. No person should ride a bicycle upon a at a speed greater than is reasonable or prudent having due regard for weather, visibility, the traffic on, and the surface and width of, the , and in no event at a speed which endangers the safety of persons, property, or the rider.
(hf) Any person riding a bicycle upon a sidewalk sha ll yield the right-of-way to any pedestrian, and when overtaking and passing a pedestrian, shall give an audible signal and shall pass to the left of the pedestrian only under conditions permitting such movement in safety. For the purpose of this section, Class I Multipurpose Trails shall be considered sidewalks. (g) A person riding a bicycle upon a roadway or Class I Multipurpose Trail has all the provisions applicable to the driver of a vehicle by this division, including, but not limited to, provisions concerning driving under the influence of alcoholic beverages or drugs, and except those provisions applicable to a driver of a vehicle which by their very nature can have no application to the rider of a bicycle.
(h) All persons riding a bicycle shall yield the right of way to all pedestrians and vehicles in the following situations:
(1) When entering a roadway or sidewalk from private property; including but not limited to an alley, driveway and residential or commercial property.
(2) When entering a roadway from a side walk or Class I Multipurpose Trail.

(i) A person operating a bicycle upon a highway shall not ride other than upon or astride a permanent and regular seat attached thereto, unless the bicycle was designed by the manufacturer to be ridden without a seat. An operator shall not allow a person riding as a passenger, and a person shall not ride as a passenger, on a bicycle upon a highway other than upon or astride a separate seat attached thereto. If the passenger is four years of age or younger, or weighs 40 pounds or less, the seat shall have adequate provision for retaining the passenger in place and for protecting the passenger from the moving parts of the bicycle. ride
(Ord. No. 73-20, § 2, 6-4-73; Ord. No. 90-8, § 2, 6-4-90) § 4-27 Signs.

The transportation Transportation services Services engineer Manager shall design and install appropriate signs identifying bicycle lanes and regulating bicycle traffic therein. He They shall also install appropriate traffic regulating signs for motor vehicles on those streets having bicycle lanes. The traffic regulation signs herein provided for shall be distinctively designed and colored so as not to be confusing to the operators of either of motor vehicles or riders of bicycles. The signs identifying bicycle lanes and regulating traffic thereon shall be designed and colored so as to be readily understood by children of school age. (Ord. No. 73-20, § 2, 6-4-73)
§ 4-28 Penalties.

Violations of this chapter unless otherwise punishable under sections of the California Vehicle Code shall be deemed a misdemeanor and shall be punishable as provided for in section 1-33 of the Costa Mesa Municipal Code.
(Ord. No. 73-20, § 2, 6-4-73)
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Chapter III

BICYCLE PARKING RACKS, SECURING OF BICYCLES
§ 4-32 Purpose and findings.
(a) The uncontrolled placement and te thering or securing of bicycles in public rights-of-way and semi- public rights-of-way, on or to public property, presents an inconvenience and danger to the safety and welfare of persons using such rights-of-way, including pedestrians and persons entering and leaving vehicles and buildings.
(b) Bicycles so located on public property as to cause an inconvenience or danger to persons using public rights-of-way and semi-public rights-of-way, and as to cause an unsightly appearance, constitute public nuisances.
(b) (Reserved)
(c) (Reserved) These factors constitute an unreasonable interference with and obstruction of the use of the public rights-of-way and semi-public rights-of-way, are injurious to health, offensive to the senses, and constitute such an obstruction of the free use of property as to interfere in the comfortable enjoyment of life and property by the entire community.
(d) The governing body recognizes, however, that many residents use bicycles as a primary means of transportation as well as for recreational purposes, or as a means to visit the city, and that adequate facilities need to be in place for the safe and secure parking and storage of these bicycles. These competing interests require a reasonable accommodation which can be satisfactorily achieved through this chapter, designed to provide for the placement of bicycle parking racks and to regulate the place and manner of bicycle parking on public property and in public rights-of-way and semi-public rights-of-way in the city.
(e) The provisions and prohibitions hereinafter enacte d are for the purpose of securing and promoting the general welfare of persons in the city in their use of public rights-of-way and semi-public rights-of-way and other public property through the regulation of bicycle parking in the city so as to:
(1) (Reserved)Provide for pedestrian and driving safety and convenience; (2) Ensure no unreasonable interference with the flow of pedestrian or vehicular traffic including ingress to, or egress from, any place of business, or from the street to the sidewalk, use of the sidewalk, use of public parks or property;
(3) Provide reasonable access for th e use and maintenance of public sidewalks, poles, traffic signs and signals, hydrants, mailboxes, trees, and similar appurtenances, and access to locations used for public transportation purposes;
(4) (Reserved) Reduce visual blight on the public rights-of-way and semi-public rights-of-way, protect the aesthetics and value of surrounding properties, and protect the quiet enjoyment of public areas; (5) Reduce exposure of the city to personal in jury or property damage claims and litigation; (6) Protect and safeguard bicycles from vandalism, damage or theft. (Ord. No. 12-5, § 1, 8-7-12)
§ 4-34 Definitions.

The following words and phrases, whenever used in this chapter, shall be construed as defined in this section:
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Bicycle parking rack means a rack for the storage, parking and securing of bicycles.

Bicycle rack space means the space sufficient for securing one bicycle to the bicycle parking rack.

Bicycle means and includes any device as defined in § 4-22.the California Vehicle Code section 39000 , and includes a “motorized bicycle,” as defined in California Vehicle Code section 406, as amended. (Ord. No. 12-5, § 1, 8-7-12)
§ 4-36 Prohibited acts.
(a) No person shall park, tether or secure a bicycle upon or to any sidewalks, poles, traffic signs or signals, hydrants, transit stops, mailboxes or in any location that interferes with the flow of pedestrian or vehicular traffic, trees, fences and similar appurtenances or on or in any public rights-of-way and semi- public rights-of-way or in any other fashion on or to anything other than a bicycle parking rack installed for that purpose, except that bicycles may be parked on private property with the consent of the property owner.
(b) (Reserved)Anything affixed to, or on a bicycle tethered or otherwise secured to a bicycle rack shall fit in one bicycle rack space and shall not protrude into any adjacent bicycle rack space. (c) All bicycles discovered by the city to have been tethered or secured upon or to any traffic signs or signals, hydrants, transit stops, mailboxes or in any location that interferes with the flow of pedestrian or vehicular trafficany sidewalks, poles, traffic signs or signals, hydrants, mailboxes, trees, fences and similar appurtenances or on or in any public rights-of-way and semi-public rights-of-way or in any other fashion on or to anything other than a bicycle parking rack installed for that purpose, or abandoned or otherwise left on public streets, side-walks, public property beyond a reasonable amount of time, or on private property without the consent of the owner shall be seized and impounded by the city. The owner of such bicycles may claim them from the city by paying a fine in an amount to be established by resolution of the city council, as may be amended from time to time, for each bicycle claimed, to cover the municipal retrieval costs, and, in addition thereto, shall pay one dollar ($1.00) per day, or an amount to be established by the city by resolution from time to time, for storage of each such bicycle. The city shall have the right to impound and retain possession of any bicycle in violation of the provisions of this chapter and may retain possession of such bicycle until the provisions of this chapter are complied with.

Bicycles which remain impounded pursuant to this section for longer than a ninety-day period may be sold at auction or donated in accordance with laws governing the disposal of abandoned property generally.
(d) In order to claim a bicycl e from impound, the owner must present a bicycle registration card from an organization such as Project 529 or similar, or be able to identify the bicycle by make, color or any other fashion sufficient to identify the bicycle. The city shall not be responsible for any bicycle impounded or released to a person claiming to be the owner thereof.
(Ord. No. 12-5, § 1, 8-7-12)
§ 4-38 Bicycle parking rack locations.

For the public convenience, the city , together with private contributions, has placed bicycle parking racks throughout the municipality, and with emphasis on areas where bicycles have historically been parked or where a bicycle rack has been requested by the public. Interested persons may obtain a list of the locations of all city bicycle racks from the city clerk.
(Ord. No. 12-5, § 1, 8-7-12)
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§ 4-40 Violation; penalty.

Any person who violates any of the provisions of this chapter shall be guilty of an infraction and shall, upon conviction thereof, be subject to a fine of $10 for each violation. (Ord. No. 12-5, § 1, 8-7-12)

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ATTACHMENT 2
Ordinance No. 2024-xx Page 1 of 3

ORDINANCE NO. 2024-xx

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA

MESA AMENDING CHAPTERS I THROUGH XXI INCLUSIVE OF TITLE 10 (MOTOR VEHICLES AND TRAFFIC ) OF THE COSTA MESA

MUNICIPAL CODE, RELATING TO DEFINITIONS, BICYCLES AND

RULES OF THE ROAD

WHEREAS, the City of Costa Mesa, pursuant to its police power, may enact regulations for the public peace, morals, and welfare of the City; and

WHEREAS, the City of Costa Mesa desires to amend the provisions of the Costa Mesa Municipal Code to impose regulations related to health, safety and welfare; and

WHEREAS, the City Council of the City of Costa Mesa hereby finds that to promote and protect the public health, safety and welfare, various pedestrian, bicycle and other transportation related provisions of the Municipal Code should be revised to be consistent with the California Vehicle Code.

WHEREAS, the City of Costa Mesa, pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) has determined that the ordinance is not a "project" and further, that it is exempt from the provisions of CEQA pursuant to CEAQ Guidelines Section 15061(b)(3) (because it can be seen with certainty that the adoption of this Ordinance will not have an effect on the environment) such that no environmental review under CEQA is required; and

WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

NOW, THEREFORE , THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Chapters I through XXI of Title 10 (Motor Vehicles and Traffic) of Title 10 of the Costa Mesa Municipal Code are hereby amended as follows:

See attached Exhibit “A”.

Section 3. Environmental Compliance . Pursuant to the provisions of the California Environmental Quality Act (“CEQA”) (California Public Resources Code Sections 21000 et seq.) and State CEQA guidelines (Sections 15000 et seq.) the ordinance is not a “project” and further, that it can be seen with certainty that there is no possibility that the ordinance in question may have a significant effect on the environment, either directly or indirectly, and that therefore no environmental review under the CEQA is required, pursuant to CEQA Guidelines Section 15061(b)(3).

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ATTACHMENT 2
Ordinance No. 2024-xx Page 2 of 3

Section 4. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of the Ordinance, to the extent of such inconsistencies and no further, are repealed or modified to that extent necessary to affect the provisions of this Ordinance.

Section 5. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance or its application to other persons. The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or portions of the application thereof to any person, be declared invalid or unconstitutional.

No portion of this Ordinance shall supersede any local, State, or Federal law, regulation, or codes dealing with life safety factors.

Section 6. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption.

Section 7. Certification. The City Clerk shall certify the passage and adoption of this Ordinance and shall cause the same to be posted or published in the manner as required by law.

PASSED AND ADOPTED this XX day of XX, 2024.

_____________________________
John Stephens, Mayor

ATTEST: APPROVED AS TO FORM:

________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney

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ATTACHMENT 2
Ordinance No. 2024-xx Page 3 of 3

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 Ordinance No. 2024-XX was duly introduced for first reading at a regular meeting of the City Council held on the 4 th day of June 2024, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the ___day of ____ 2024, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this ___ day of ____, 2024.

________________________________

BRENDA GREEN, CITY CLERK

(SEAL)

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Title 10
Motor Vehicles and Traffic
Chapter I

DEFINITIONS
§ 10-1 Applicability.

The following words and phrases w
hen used in this title shall for the purpose of this title have the meanings respectively ascribed to them in this chapter.
(Code 1960, § 3401.0; Ord. No. 66-35, 8-15-66)
§ 10-2 Vehicle Code definitions to be applied to undefined words and phrases.

Whenever any words or phrases used in this title are not defined in this chapter, but are defined in the Vehicle Code and amendments thereto, such definitions shall apply. (Code 1960, § 3401.1; Ord. No. 66-35, 8-15-66)
§ 10-3 “Alley” defined.

As used in this title the term “alley” means a public unnamed roadway which does not exceed 25 feet in width between property lines.
(Code 1960, § 3401.2; Ord. No. 66-35, 8-15-66)
§ 10-4 “Bicycle” defined.
(a) A “bicycle” is a device upon which any person may ride, propelled by human power through a belt, chain or gears, and having either two or three wheels in tandem or tricycle arrangement. (b) An “electric bicycle” is a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts.
(1) A “class 1 electric bicycle,” or “low-speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour.
(2) A “class 2 electric bicycle,” or “low-speed throttle-assisted electric bicycle,” is a bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour. (3) A “class 3 electric bicycle,” or “speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour, and equipped with a speedometer.

As used in this title the term “bicycle” means a device propelled by human power upon which any person may ride, having two tandem wheels, either of which is more than 20 inches in diameter. The term “unicycle” means any device propelled by human power upon which any person may ride having one wheel.

EXHIBIT A
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(Code 1960, § 3401.3; Ord. No. 66-35, 8-15-66)
§ 10-5 “Coach” defined.

As used in this title the term “coach” means any motor bus, motor coach, trackless trolley or passenger stage used as a common carrier of passengers.
(Code 1960, § 3401.4; Ord. No. 66-35, 8-15-66)
§ 10-6 “Curb” defined.

As used in this title the term “curb” means the lateral boundary of the roadway, whether or not such curb is marked by curbing construction; however, the word “curb” shall not include the line dividing the roadway of a street from parking strips in the center of a street, nor from tracks or rights-of-way of public utility companies.
(Code 1960, § 3401.6; Ord. No. 66-35, 8-15-66)
§ 10-7 “Divisional island” defined.

As used in this title the term “divisional island” means a raised island or an area defined by painted lines located in the roadway and separating opposing or conflicting streams of traffic. (Code 1960, § 3401.7; Ord. No. 66-35, 8-15-66)
§ 10-8 “Holidays” defined.

As used in this title the term “holidays” shall include:
(a) Every Sunday.
(b) January first.
(c) Third Monday of January, Martin Luther King, Jr. Day (d) cFebruary twelfth, known as “Lincoln Day.”
(ed) The third Monday in February.
(fe) The last Monday in May.
(g) June 19 th, Juneteenth
(hf) Fourth of July.
(ig) First Monday in September.
(h) September ninth, known as “Admission Day.”
(ji) The second Monday in October, known as “Columbus Day.” (kj) The fourth Monday in OctoberNovember 11th or closest adjacent weekday, known as “Veterans Day.” (l) The fourth Thursday in November and the following Friday, known as “Thanksgiving Holiday.” (mk) December twenty-fifth.
(l) Good Friday from 12:00 noon until 3:00 p.m.
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(m) Every day on which an election is held throughout the state. (n) Every day appointed by the President or govern or for a public fast, thanksgiving or holiday. (Code 1960, § 3401.8; Ord. No. 66-35, 8-15-66)
§ 10-9 “Intersection” defined.

As used in this title the term “intersection” means the area embraced within the prolongation of the lateral curblines, or, if none, then the lateral boundaries of the roadways of two highways which join one another at approximately right angles or the area within which vehicles traveling upon different highways joining at any other angle may come in conflict. The prolongation of alley curbs or lateral boundary lines which intersect a publicly named street is determined to be an intersection. (Code. 1960, §§ 3401.2, 3401.9; Ord. No. 66-35, 8-15-66) § 10-10 “Loading zone” defined.

As used in this title the term “loading zone” means the space adjacent to a curb reserved for the exclusive use of vehicles during the loading or unloading of passengers, materials or merchandise. (Code 1960, § 3401.10; Ord. No. 66-35, 8-15-66)
§ 10-11 Official time standard.

Whenever certain hours are named herein, they shall mean standard time or daylight saving time as may be in current use in the city.
(Code 1960, § 3401.11; Ord. No. 66-35, 8-15-66)
§ 10-12 “Official traffic-control device” defined.

As used in this title the term “official traffic-control device” means any sign, signal, marking or device not inconsistent with the Vehicle Code, placed or erected by officials having jurisdiction, for the purpose of regulating, warning or guiding traffic.
(Code 1960, § 3401.12; Ord. No. 66-35, 8-15-66)
§ 10-13 “Official traffic-control signal” defined.

As used in this title the term “official traffic-control signal” means any device, whether manually, electrically or mechanically operated, by which traffic is alternately directed to stop and proceed and which is erected by officials having jurisdiction.
(Code 1960, § 3401.13; Ord. No. 66-35, 8-15-66)
§ 10-14 “Park” defined.

As used in this title the term “park” means to stand or leave standing any vehicle, whether occupied or not, otherwise than temporarily for the purpose of and while actually engaged in loading or unloading passengers or materials.
(Code 1960, § 3401.14; Ord. No. 66-35, 8-15-66)
§ 10-15 “Parkway” defined.

As used in this title the term “parkway” means that portion of a street or road right-of-way other than a roadway or sidewalk.
(Code 1960, § 3401.15; Ord. No. 66-35, 8-15-66)
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§ 10-16 “Parking meter” defined.

As used in this title the term “parking meter” means a mechanical device installed within or upon the curb or sidewalk area, immediately adjacent to a parking space, for the purpose of controlling the period of time of occupancy of such parking meter space by any vehicle.
(Code 1960, § 3401.16; Ord. No. 66-35, 8-15-66)
§ 10-17 “Passenger loading zone” defined.

As used in this title the term “passenger loading zone” means the space adjacent to a curb reserved for the exclusive use of vehicles during the loading or unloading of passengers. (Code 1960, § 3401.17; Ord. No. 66-35, 8-15-66)
§ 10-18 “Pedestrian” defined.

As used in this title the term “pedestrian” means any person afoot or in a wheelchair. (Code 1960, § 3401.18; Ord. No. 66-35, 8-15-66)
§ 10-19 “Police officer” defined.

As used in this title the term “police officer” means any officer of the police department of the city or any of officer authorized to direct or regulate traffic or to make arrests for violations of traffic regulations. (Code 1960, § 3401.20; Ord. No. 66-35, 8-15-66)
§ 10-20 “Road right-of-way” defined.

As used in this title the term “road right-of-way” means the entire right-of-way that has been dedicated to a public agency for street and highway purposes.
(Code 1960, § 3401.21; Ord. No. 66-35, 8-15-66)
§ 10-21 “Stop” defined.

As used in this title the term “stop,” when required, means complete cessation of movement. (Code 1960, § 3401.22; Ord. No. 66-35, 8-15-66)
§ 10-22 “Stop or stand” defined.

As used in this title the term “stop or stand,” when prohibited, means any stopping or standing of a vehicle, whether occupied or not, except when necessary to avoid conflict with other traffic or in compliance with the directions of a police officer or official traffic-control device. (Code 1960, § 3401.23; Ord. No. 66-35, 8-15-66)
§ 10-23 “Street” defined.

As used in this title the term “street” means a way or place, of whatever nature, publicly maintained and open to the use of the public for purposes of vehicular travel. The travel way must be clearly defined by existing curbing or some acceptable form of lateral boundaries before the city will accept the road, by resolution, into the city street system.
(Code 1960, § 3401.24; Ord. No. 66-35, 8-15-66)
§ 10-24 “Vehicle code” defined.

As used in this title the term “vehicle code” means the Vehicle Code of the State of California. 1080
(Code 1960, § 3401.25; Ord. No. 66-35, 8-15-66)
§ 10-25 “Yield” defined.

As used in this title the term “yield,” when required, means that the vehicle approaching the yield sign shall yield the right-of-way and stop, if necessary, in order to allow cross traffic to safely pass the intersection. (Code 1960, § 340.126; Ord. No. 66-35, 8-15-66)
Chapter II

TRAFFIC ADMINISTRATION
§ 10-37 Traffic division established.

There is hereby established in the police department a traffic division to be under the control of an officer of the police department appointed by and directly responsible to the chief of police. (Code 1960, § 3402.0; Ord. No. 66-35, 8-15-66)
§ 10-38 Duties of traffic division generally.

It shall be the duty of the traffic division, with such aid as may be rendered by other members of the police department, to enforce the street traffic regulations of the city and all of the state vehicle laws applicable to street traffic in the city, to make arrests for traffic violations, to investigate traffic accidents and to cooperate with the city transportation services engineer manager and other officers of the city in the administration of the traffic laws and in developing ways and means to improve traffic conditions, and to carry out those duties specially imposed upon the traffic division by this title. (Code 1960, § 3402.1; Ord. No. 66-35, 8-15-66)
§ 10-39 Traffic accident studies.

Whenever the accidents at any particular location become numerous, the traffic division shall cooperate with the transportation services engineer manager in conducting studies of such accidents and determining remedial measures.
(Code 1960, § 3402.2; Ord. No. 66-35, 8-15-66)
§ 10-40 Traffic accident reports.

The records bureau of the police department shall maintain a suitable system of filing traffic accident reports.

Accident reports or cards referring to them shall be filed alphabetically by location. Such reports shall be available for the use and information of the transportation services engineermanager. (Code 1960, § 3402.3; Ord. No. 66-35, 8-15-66)
§ 10-41 Annual traffic report.

The traffic division shall annually prepare a traffic report which shall be filed with the city council. Such report shall contain information on traffic matters in the city as follows:
(a) The number of traffic a ccidents, the number of persons killed, the number of persons injured and other pertinent traffic accident data.
(b) The number of traffic accidents investigated and other pertinent data on the safety activities of the police.
(c) The plans and recommendations of the traffic division for future traffic safety activities. 1081
(Code 1960, § 3402.4; Ord. No. 66-35, 8-15-66)

§ 10-42 Transportation services engineermanager.

There is hereby established the office of city transportation services engineer manager who shall be appointed by the city manager and whose duties and powers shall be as set forth in this title. The transportation services engineer manager shall also be known as the transportation services manager and city transportation services engineermanager.
(Code 1960, § 3402.5; Ord. No. 66-35, 8-15-66; Ord. No. 93-17, § 1, 11-1-93) § 10-43 Powers and duties of city transportation services engineermanager.

In addition to the powers and duties set forth in this title, it shall be the general duty of the transportation services engineer manager to determine the installation and proper timing and maintenance of traffic-control devices and signals, to conduct engineering analysis of traffic accidents and to devise remedial measures, to conduct engineering and traffic investigations of traffic conditions and to cooperate with other city officials in the development of ways and means to improve traffic conditions, and to carry out the additional powers and duties imposed by this title. He or she shall report monthly to the city council all action taken by him or her which will affect the motoring and pedestrian public. Whenever, by the provisions of this title, a power is granted to the transportation services engineer manager or a duty imposed upon him or her, the power may be exercised or the duty performed by ahis deputy or by a person authorized in writing by him or her. (Code 1960, § 3402.6; Ord. No. 66-35, 8-15-66; Ord. No. 93-17, § 2, 11-1-93) § 10-45 Additional duties of the transportation services engineermanager.

The duties of the transportation services engineer manager shall be as follows:
(a) Follow review established by city council on the exercise of authority to install or change traffic control devices.
(b) Advise the planning commission fo r appeals on the requests of the public to install or change those traffic control devices that fall under the authority of the transportation services engineermanager. (c) Advise the city council concerni ng proposals for new traffic ordinances or changes in traffic control devices for which the city council retains authority.
(d) Advise the planning commission a nd city council regarding proposed amendments to the transportation element of the general plan.
(e) Advise the city council regardi ng short-term and long-range plans to improve the transportation systems of the city.
(f) Advise the city council regarding studies or pr oposals for actions which may significantly change transportation facilities or conditions within the city. (g) Advise the planning commission and city counc il regarding the adequacy of environmental impact reports and circulation mitigation measures for private or public projects which may affect transportation.
(h) Advise the police department traffic bureau of locations recommended for increased enforcement of specific or general traffic laws, based on public input. (Code 1960, § 3402.8; Ord. No. 66-35, 8-15-66; Ord. No. 87-26, § 2, 12-7-87; Ord. No. 88-12, § 2, 9-19-88; Ord. No. 93-17, § 4, 11-1-93)
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§ 10-46 Coordination and appeals: Planning commission and transportation services engineermanager.
(a) The transportation services engineer manager may request that action be taken by the planning commission at a public hearing on any matter in this title wherein the transportation services engineer manager is granted exclusive jurisdiction.
(b) Appeals may be taken from the deci sions of the transportation services engineer manager pursuant to Title 2 of this Code on the following matters to the planning commission:
(1) Installation or removal of audible pedestrian signals. (2) Implementation of mast er plan of bikeways.
(3) Bus shelter advertising.
(4) Implementation of city-wide traffic impact fees.
(5) Implementation of congestion ma nagement program and transportation demand management program. (6) Intersection improvements.
(7) Parking restrictions and permits.
(8) Pedestrian access.
(9) Signal installati ons or removals.
(10) Speed bumps.
(11) Stop sign installation or removals.
(12) Street closures.
(13) Vehicle parking district.
(c) The transportation services engineer’s manager’s decisions on the matters set forth in subsection (b) shall be final unless appealed to the planning commission. (Code 1960, § 3402.9; Ord. No. 66-35, 8-15-66; Ord. No. 88-12, § 2, 9-19-88; Ord. No. 93-17, § 5, 11-1-93) § 10-48 Guide signs; transportation.

It shall be the duty of the transportation services engineer manager to establish a system of guide signs within the city and to approve or disapprove applications and requests for guide signs, upon payment of an application fee set by resolution of city council, subject to the right of the applicant for such sign to appeal to the planning commission. All guide signs shall conform to the “Standards for Guide Signs” in the city, as established by resolution of city council, which is hereby incorporated herein by this reference. (Ord. No. 83-25, § 2, 11-21-83; Ord. No. 87-26, § 2, 12-7-87; Ord. No. 88-12, § 2, 9-19-88; Ord. No. 93-17, § 7, 11-1-93)
Chapter III

ENFORCEMENT AND OBEDIENCE TO REGULATIONS
§ 10-59 Authority of police and fire department officers.

Officers of the police department and such officers as are assigned by the chief of police are hereby 1083
authorized to direct all traffic by voice, hand, audible or other signal in conformance with traffic laws, except that in the event of a fire or other emergency or to expedite traffic or to safeguard pedestrians, officers of the police department, firemen and flagmen on construction or maintenance projects may direct traffic as conditions may require, notwithstanding the provisions to the contrary contained in this title or in the vehicle code.
(Code 1960, § 3403.0; Ord. No. 66-35, 8-15-66)
§ 10-60 Persons other than officers shall not direct traffic.

No person other than an officer of the police department or member of the fire department or a person authorized by the chief of police or a person authorized by law shall direct or attempt to direct traffic by voice, hand or audible signal, except that persons may operate, when and as herein provided, any mechanical push-button signal erected by order of the transportation services engineermanager. (Code 1960, § 3403.1; Ord. No. 66-35, 8-15-66)
§ 10-61 (Reserved)Fairview State Hospital enforcement.

The police department will be charged with the enforcement of city traffic regulations and all the sections of the vehicle code upon such streets and roads of Fairview State Hospital as are located within the city. (Code 1960, § 3418.0; Ord. No. 66-35, 8-15-66; Ord. No. 69-16, 7-14-69) § 10-62 Obedience to police or authorized officers.

No person shall fail or refuse to comply with or perform any act forbidden by any lawful order, signal or direction of a traffic or police officer, or member of the fire department, or a person authorized by the chief of police or by law.
(Code 1960, § 3403.2; Ord. No. 66-35, 8-15-66)
§ 10-63 Required obedience to traffic regulations.

It shall be a misdemeanor for any person driving any vehicle or other conveyance upon any street or for any pedestrian to do any act forbidden or fail to perform any act required as applicable to any such person under this title.
(Code 1960, § 3403.3; Ord. No. 66-35, 8-15-66)
§ 10-64 Traffic regulations apply to persons riding bicycles or animals.

Every person riding a bicycle as defined in § 10-4 or riding or driving an animal upon a highway shall be granted all of the rights and shall be subject to all of the duties applicable to the driver of a vehicle under this title and as outlined for individuals riding a bicycle in § 4-26, except those provisions which by their very nature can have no application.
(Code 1960, § 3403.4; Ord. No. 66-35, 8-15-66)
§ 10-66 Public employees to obey traffic regulations.

The provisions of this title shall apply to the operator of any vehicle owned by or used in the service of the United States Government, this state, any county or city, and it is unlawful for any such operator to violate any of the provisions of this title except as otherwise permitted in this title or by the vehicle code. (Code 1960, § 3403.6; Ord. No. 66-35, 8-15-66)
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§ 10-67 Exemption of certain vehicles.
(a) The provisions of this title regulating the operation, parking and standing of vehicles shall not apply to vehicles operated by the police or fire department, any public ambulance or any public utility vehicle or any private ambulance, which public utility vehicle or private ambulance has qualified as an authorized emergency vehicle, when any such vehicle is operated in the manner specified by the vehicle code in response to an emergency call.
(b) The foregoing exemptions sha ll not, however, relieve the operator of any such vehicle from the obligation to exercise due care for the safety of others or the consequence of his willful disregard of the safety of others.
(c) The provisions of this title regul ating the parking or standing of vehicles shall not apply to any vehicle of a city department or public utility while necessarily in use for construction or repair work, or any authorized police vehicle when on official police business other than of an emergency nature, or any vehicle owned or operated by the United States Post Office Department while in use for the collection, transportation or delivery of United States mail.
(Code 1960, § 3403; Ord. No. 66-35, 8-15-66)
§ 10-68 Report of damage to certain property.
(a) The operator of a vehicle or the person in charge of any animal involved in any accident resulting in damage to any property publicly owned or owned by a public utility, including but not limited to any fire hydrant, parking meter, lighting post, telephone pole or electric light or power pole, or resulting in damage to any tree, traffic-control device or other property of a like nature located in or along any street shall, without unnecessary delay, notify the police department wherein the collision occurred. (b) Every such report shall state th e time when and the place where the accident took place, the name and address of the person owning and of the person operating or in charge of such vehicle or animal, the license number of every such vehicle and shall briefly describe the property damage in such accident. (c) The operator of any vehicle involv ed in an accident shall not be subject to the requirements of this section if following the accident he is physically incapable of making a report, but in such event he shall make a report as required in subsection (a) without unnecessary delay after regaining the ability to make such report.
(Code 1960, § 3403.8; Ord. No. 66-35, 8-15-66)
§ 10-69 When vehicles may be removed from streets.
(a) Any regularly employed or salaried police officer or police cadet of the police department personnel may remove or cause to be removed any vehicle which:
(1) Has been parked or left standing upon a street or highway in violation of any of the provisions of section 10-185.
(2) Is parked or left standing upon a street or highway when such parking or standing is prohibited by ordinance or resolution of this city and signs are posted giving notice of such removal. (3) Is parked or left standing upon a street or highway where the use of such street or highway or a portion thereof is necessary for the cleaning, sweeping, repair or construction of the street or highway, or for the installation of underground utilities, or where the use of the street or highway or any portion thereof is authorized for a purpose other than the normal flow of traffic, or where the use of the street or highway or any portion thereof is necessary for the movement of equipment, articles or structures of unusual size, and the parking of such vehicle would prohibit or interfere with such use or movement; provided that 1085
signs giving notice that such vehicle may be removed are erected or placed at least 24 hours prior to the removal.
(4) If parked or left standing in viola tion of California Vehicle Code section 22651. (b) (Reserved)
(c) After any vehicle has been removed summarily as provided in paragraph (a) above, the vehicle’s registered and legal owners of record shall be given the opportunity for a post removal hearing to determine the validity of the storage in accordance with California Vehicle Code section 22852. (d) The procedures for hearings unde r this section shall be established by the chief of police and the hearings held by himthe chief, or any police officer designated by him or her who did not direct the storage.
(e) The disposition of any stored vehicle shall be in accordance with California Vehicle Code sections 22704 through 22707, 22850 and 22851.
(Code 1960, § 3403.9; Ord. No. 66-35, 8-15-66; Ord. No. 80-13, § 1, 8-18-80; Ord. No. 02-15, §§ 3—5, 8-5- 02)
Chapter IV

TRAFFIC-CONTROL DEVICES
§ 10-81 Authority to install.
(a) The transportation services engineer manager shall have the power and duty to place and maintain or cause to be placed and maintained official traffic-control devices when and as required to make effective the provisions of this title.
(b) Whenever the vehicle code require s, for the effectiveness of any provision thereof, that traffic-control devices be installed to give notice to the public of the application of such law, the transportation services engineer manager is hereby authorized to install or cause to be installed the necessary devices subject to any limitations or restrictions set forth in the law applicable thereto. (c) The transportation services engineer manager may also place and maintain or cause to be placed and maintained such additional traffic-control devices as he may deem necessary or proper to regulate traffic or to guide or warn traffic, but he shall make such determination only upon the basis of traffic engineering principles and traffic investigations and in accordance with such standards, limitations and rules as may be set forth in this title, or as may be determined by ordinance or resolution of the city council.
(Code 1960, § 3404.0; Ord. No. 66-35, 8-15-66)
§ 10-82 Signs required for enforcement purposes.

No provision of the vehicle code or of this title for which signs are required shall be enforced against an alleged violator unless appropriate legible signs are in place giving notice of such provisions of the traffic laws.
(Code 1960, § 3404.1; Ord. No. 66-35, 8-15-66)
§ 10-83 Obedience to devices.

The operator of any vehicle or train, or any pedestrian, shall obey the instructions of any official traffic control device placed in accordance with this title, unless otherwise directed by a police officer or other authorized person subject to the exceptions granted the operator of an authorized emergency vehicle when 1086
responding to emergency calls.
(Code 1960, § 3404.2; Ord. No. 66-35, 8-15-66)
§ 10-84 Existing devices approved.

Until removed or relocated as provided in this title, all traffic-control devices heretofore installed and in place as of the effective date of this title are hereby approved. (Code 1960, § 3404.3; Ord. No. 66-35, 8-15-66)
§ 10-85 Installation of signals.
(a) The transportation services engineer manager is hereby directed to propose funding for construction of and to maintain traffic signals at those intersections and other places where traffic conditions are such as to benefit from alternate interruption and release of traffic flow in order to prevent or relieve traffic congestion or to protect life or property from exceptional hazards. (b) The transportation services engineer manager shall ascertain and determine the locations where such signals are required by field investigation, traffic counts and other traffic information as may be pertinent, and his or her determinations therefrom shall be made in accordance with those traffic engineering and safety standards set forth in the California State Planning Manual on Uniform Traffic Control Devices (Part 8, Traffic) issued by the Division of HighwaysDepartment of Transportation of the State of CaliforniaDivision of Public Works.
(c) Whenever the transportation services engineer manager installs and maintains an official traffic signal at any intersection, he or she shall likewise erect and maintain at such intersection street name signs visible to the principal flow of traffic, unless such street name signs have been previously placed and are maintained at any such intersection.
(d) For the purpose of this section, an official traffic signal is any device, whether manually, electrically or mechanically operated, by which traffic is alternately directed to stop and proceed and which is erected by authority of a public body or official having jurisdiction. (Code 1960, § 3404.4; Ord. No. 66-35, 8-15-66; Ord. No. 87-26, § 2, 12-7-87) § 10-86 Lane marking.

The transportation services engineer manager is hereby authorized to mark center lines and lane lines upon the surface of the roadway to indicate the course to be traveled by vehicles and may place signs temporarily designating lanes to be used by traffic moving in a particular direction, regardless of the center line of the highway.
(Code 1960, § 3404.5; Ord. No. 66-35, 8-15-66)
§ 10-87 Distinctive roadway markings.

The transportation services engineer manager is authorized to place and maintain distinctive roadway markings as described in the vehicle code on those streets and parts of streets where the volume of traffic or the vertical or other curvature of the roadway renders it hazardous to drive on the left side of such marking or signs and markings. Such marking or signs and markings shall have the same effect as similar markings placed by the state department of public works pursuant to the provisions of the vehicle code. (Code 1960, § 3404.6; Ord. No. 66-35, 8-15-66)
§ 10-88 Authority to remove, relocate and discontinue devices.

The transportation services engineer manager is hereby authorized to remove, relocate or discontinue the 1087
operation of any traffic-control device not specifically required by the vehicle code or this title, whenever he or she shall determine in any particular case that the conditions which warranted or required the installation no longer exist or remain.
(Code 1960, § 3404.7; Ord. No. 66-35, 8-15-66)
§ 10-89 Hours of operation.

The transportation services engineer manager shall determine the hours and days during which any traffic- control device shall be in operation or in effect, except in those cases where such hours or days are specified in this title.
(Code 1960, § 3404.8; Ord. No. 66-35, 8-15-66)
§ 10-90 Unauthorized painting of curbs.

No person, unless authorized by the city, shall paint any street or curb surface; provided, however, that this section shall not apply to the painting of numbers on a curb surface by any person who has complied with the provisions of any resolution or ordinance of the city pertaining thereto. (Code 1960, § 3404.9; Ord. No. 66-35, 8-15-66)
Chapter V

TURNING MOVEMENTS
§ 10-102 Authority to place and obedience to turning markers. (a) The city transportation services engineer manager is authorized to place markers, buttons, barriers or signs within or adjacent to intersections, indicating the course to be traveled by vehicles turning at such intersections, and the city transportation services engineer manager is authorized to locate and indicate more than one lane of traffic from which drivers of vehicles may make right or left turns, and the course to be traveled as so indicated may conform to or be other than as prescribed by law or ordinance. (b) When authorized markers, buttons, barriers or othe r indications are placed within an intersection or the approach to an intersection indicating the course to be traveled by vehicles turning thereat, no driver of a vehicle shall disobey the directions of such indications. (Code 1960, § 3405.0; Ord. No. 66-35, 8-15-66)
§ 10-103 Authority to place restricted turn signs.

The city transportation services engineer manager is hereby authorized to determine those intersections at which drivers of vehicles shall not make a right, left or U-turn, and shall place proper signs at such intersections. The making of such turns may be prohibited between certain hours of any day and permitted at other hours, in which event the same shall be plainly indicated on the signs or they may be removed when such turns are permitted.
(Code 1960, § 3405.1; Ord. No. 66-35, 8-15-66)
§ 10-104 Obedience to no-turn signs.

Whenever authorized signs are erected indicating that no right, left or U-turn is permitted, no driver of a vehicle shall disobey the directions of any such sign.
(Code 1960, § 3405.2; Ord. No. 66-35, 8-15-66)
§ 10-105 Signal-controlled intersections; right turns.
(a) No driver of a vehicle shall ma ke a right turn against a red or stop signal at any intersection which is 1088
signposted giving notice of such restrictions as provided in subsection (b). (b) The city transportation services engineer manager shall post appropriate signs giving effect to this section where he determines that the making of right turns against a traffic signal stop indication would seriously interfere with the safe and orderly flow of traffic. (Code 1960, § 3405.3; Ord. No. 66-35, 8-15-66)
Chapter VI

ONE-WAY STREETS AND ALLEYS
§ 10-117 To be signed.
(a) Whenever any ordinance or reso lution of the city designates any one-way street or alley, the city transportation services engineer manager shall place and maintain signs giving notice thereof, and no such regulations shall be effective unless such signs are in place. Signs indicating the direction of lawful traffic movement shall be placed at every intersection where movement of traffic in the opposite direction is prohibited.
(b) Whenever authorized signs are erected indicating th e direction of lawful traffic movement, no driver of a vehicle shall disobey the direction of any such sign. (Code 1960, § 3406.0; Ord. No. 66-35, 8-15-66)
§ 10-118 One-way streets designated.

In accordance with section 10-117, and when properly signposted, traffic shall move only in the direction indicated upon the following streets:

Pearmain Way between Magnolia to 18th Street, northerly; Irvine Avenue from the northerly limits of the city boundaries to a point 333 feet south of East 17th Street, southerly;
The southerly 183 feet of the alley westerly of Lot 12 of Tract No. 325 measured from the northerly line of 19th Street, 80 feet wide, northbound;
That portion of the alley lying at the northerly line of Tract No. 3615 running between Harbor Boulevard and Deodar Avenue, westbound;
That portion of the alley running southwesterly from Broadway and lying between Newport Boulevard and Fullerton Street, for a distance of 80 feet from the southerly line of Broadway, southbound.

That portion of the alley located westerly of Deodar Avenue running northerly between Baker Street and Nutmeg Place.
(Code 1960, § 3416.3; Ord. No. 66-35, 8-15-66; Ord. No. 73-14, § 1, 5-7-73) Chapter VII

SPECIAL STOPS REQUIRED
§ 10-131 City transportation services engineer manager to erect stop signs. (a) The transportation services engineer manager is hereby authorized to erect and maintain stop signs where an intersection approach meets city stop signs warrants, or when such intersection approach does not meet city stop sign warrants, but is necessary for safety reasons. Every such sign shall conform with 1089
and shall be placed as provided in the vehicle code, and no such stop sign regulation shall be in effect until such signs are in place.
(b) Whenever authorized stop signs ar e erected no driver of a vehicle shall disobey the instructions of any such signs.
(Code 1960, § 3407.0; Ord. No. 66-35, 8-15-66; Ord. No. 87-26, § 2, 12-7-87) § 10-134 Emerging from alley, driveway or building.

Notwithstanding the provisions of section 4-26(e) of the Costa Mesa Municipal Code, the driver of a vehicle emerging from an alley, driveway or building shall stop such vehicle immediately prior to driving onto a sidewalk or into the sidewalk area extending across any alleyway or driveway. (Code 1960, § 3407.2; Ord. No. 66-35, 8-15-66; Ord. No. 90-8, § 2, 6-4-90) § 10-135 Erection of yield signs.

The transportation services engineer manager is hereby authorized to erect and main YIELD signs at any intersection or portion of an intersection and to designate such intersection as a YIELD intersection, and no such right of-way assignment shall be effective until such signs are in place. (Code 1960, § 3407.3; Ord. No. 66-35, 8-15-66; Ord. No. 87-26, § 2, 12-7-87) Chapter VIII

MISCELLANEOUS DRIVING RULES
§ 10-147 Driving through a parade or funeral procession. (a) No operator of any vehicl e shall drive between the vehicles comprising a parade. (b) No operator of any vehicle sha ll drive between the vehicles comprising a funeral procession, provided that such vehicles are conspicuously so designated, and operating not more than 50 feet apart with lighted headlamps.
(c) Exceptions: This section shall not ap ply to authorized emergency vehicles. (d) The directing of all vehicles a nd traffic on any street over which such funeral procession or parade wishes to pass shall be subject to the orders of the police department. (Code 1960, § 3408.0; Ord. No. 66-35, 8-15-66)
§ 10-148 Clinging to moving vehicles.

No person shall attach himself with his hands, or catch on, or hold onto with his hands or by any other means, to any moving vehicle or train for the purpose of receiving motive power therefrom, except those persons required to do so by the nature of their work.
(Code 1960, § 3408.1; Ord. No. 66-35, 8-15-66)
§ 10-149 Commercial vehicles using private driveways.

No person shall operate or drive a commercial vehicle in or on or across any private driveway approach or sidewalk area or the driveway itself without the consent of the owner or occupant of the property, if a sign or markings are in place indicating that the use of such driveway is prohibited. For the purpose of this section a commercial vehicle shall mean a vehicle having a rated capacity in excess of one-half (½) ton. (Code 1960, § 3408.2; Ord. No. 66-35, 8-15-66)
1090
§ 10-150 Riding or dDriving on sidewalk.

No person shall ride, drive, propel or cause to be propelled any vehicle or animal across or upon any sidewalk, except over permanently constructed driveways and except when it is necessary for any temporary purpose to drive a loaded vehicle across a sidewalk; provided further, that the sidewalk area shall be substantially protected by wooden planks two inches thick, and a permit shall have been previously obtained from the transportation services engineermanager. Such wooden planks shall not be permitted to remain upon the sidewalk area during the hours from 6:00 p.m. to 6:00 a.m. (Code 1960, § 3408.3; Ord. No. 66-35, 8-15-66)
§ 10-151 New pavement and markings.

No person shall ride or drive any animal or any vehicle over or across any newly made pavement, freshly painted marking or freshly oiled roadway in any street when a barrier, sign, cone marker or other warning device is in place warning persons not to drive over or across such pavement, marking or roadway, or when any such device is in place indicating that the street or any portion thereof is closed. (Code 1960, § 3408.4; Ord. No. 66-35, 8-15-66)
§ 10-152 Limited access.

No person shall drive a vehicle onto or from any limited-access roadway except at such entrances and exits as are lawfully established.
(Code 1960, § 3408.5; Ord. No. 66-35, 8-15-66)
§ 10-153 (Reserved) Restrictions on use of freeways.

No person shall drive or operate any bicycle, motor-driven cycle or any nonmotorized vehicle which is not drawn by a motor vehicle upon any street established as a freeway, as defined by state law, nor shall any pedestrian walk across or along any such street so designated and described, except in space set aside for the use of pedestrians, provided official signs are in place giving notice of such restrictions.
(Code 1960, § 3408.6; Ord. No. 66-35, 8-15-66)
§ 10-154 Obedience to barriers and signs.

No person, public utility or department of the city, except the fire or police department, shall erect or place any barrier or sign on any street unless a type approved by the transportation services engineermanager, or disobey the instructions, remove, tamper with or destroy any barrier or sign lawfully placed on any street by any person, public utility or by any department of the city. No person, public utility or department of the city, except the fire and police departments, shall close a roadway to through traffic or reduce the number of through traffic lanes without first obtaining the approval of the transportation services engineermanager. (Code 1960, § 3408.7; Ord. No. 66-35, 8-15-66)
§ 10-155 Obstructing intersections.

No operator of any vehicle shall enter an intersection or a marked crosswalk unless there is sufficient space on the other side of the intersection or crosswalk to accommodate the vehicle he is operating without obstructing the passage of other vehicles or pedestrians, notwithstanding any traffic-control signal indication to proceed.
(Code 1960, § 3408.8; Ord. No. 66-35, 8-15-66)
§ 10-156 Overtaking and Passing of a Person Riding a Bicycle 1091
(a) The driver of a motor vehicle overtaking and passing a bicycle that is proceeding in the same direction on a highway shall pass in compliance with the requirements of the California Vehicle Code applicable to overtaking and passing a vehicle, and shall do so at a safe distance that does not interfere with the safe operation of the overtaken bicycle, having due regard for the size and speed of the motor vehicle and the bicycle, traffic conditions, weather, visibility, and the surface and width of the highway. (b) A driver of a motor vehicle shall not overtake or pass a bicycle proceeding in the same direction on a roadway at a distance of less than three feet between any part of the motor vehicle and any part of the bicycle or its operator. The driver of a motor vehicle overtaking or passing a bicycle that is proceeding in the same direction and in the same lane of travel shall, if another lane of traffic proceeding in the same direction is available, make a lane change into another available lane with due regard for safety and traffic conditions, if practicable and not prohibited by law, before overtaking or passing the bicycle. (c) If the driver of a motor vehicle is unable to comply with subdivision (b), due to traffic or roadway conditions, the driver shall slow to a speed that is reasonable and prudent, and may pass only when doing so would not endanger the safety of the rider of the bicycle, taking into account the size and speed of the motor vehicle and bicycle, traffic conditions, weather, visibility, and surface and width of the highway.

Chapter IX
PEDESTRIANS’ REGULATIONS
§ 10-167 Transportation services engineer manager to establish marked crosswalks.

The transportation services engineer manager shall establish, designate and maintain crosswalks at intersections and other places by appropriate devices, marks or lines upon the surface of the roadway as follows:
(a) Crosswalks shall be established and maintained at all locations where the transportation services engineer manager determines that there is particular hazard to pedestrians crossing the roadway, subject to the limitations contained in subsection (b).
(b) Other than crosswalks at intersections, no crosswalk shall be established in any block which is less than 400 feet in length and such crosswalk shall be located as nearly as practicable at mid-block. (c) The transportation services engineer manager may place signs at or adjacent to an intersection in respect to any crosswalk directing that pedestrians shall cross in the crosswalk so indicated. Whenever authorized signs are erected prohibiting the use of certain crosswalks, no pedestrians shall disobey the directions of any such sign.
(Code 1960, § 3409.0; Ord. No. 66-35, 8-15-66)
§ 10-168 When pedestrians must use crosswalks.

Where crosswalks have been established, no person shall cross a roadway other than by such crosswalks. (a) Between adjacent intersections controlled by traffic control signal devices or by police officers, pedestrians shall not cross the roadway at any place except in a crosswalk. (1) A peace officer, as defined in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of the Penal Code, shall not stop a pedestrian for a violation of subdivision (a) unless a reasonably careful person would realize there is an immediate danger of a collision with a moving vehicle or other device moving exclusively by human power.
(2) This subdivision does not relieve a pedestrian from the duty of using due care for their safety. 1092
(3) This subdivision does not relieve a driver of a vehicle from the duty of exercising due care for the safety of any pedestrian within the roadway.
(Code 1960, § 3409.1; Ord. No. 66-35, 8-15-66)
§ 10-169 Standing, sitting or occupying center medians prohibited. (a) No person shall stand or sit upon, or otherwise oc cupy a center median for any purpose other than to do so temporarily while lawfully crossing any roadway. For purposes of this section, “center median” shall mean and refer to that portion of a highway, not less than two feet in width, which is painted or raised, and which separates the roadway for traffic in opposite directions. (b) It is unlawful for any person to violate any provision, or fail to comply with any of the requirements of this section. Any person violating any provision of this section or failing to comply with any of its requirements shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punishable as set forth in section 1-33 of this Code.
(c) A violation of any of th e provisions of this section shall constitute a public nuisance and may be abated by the city attorney through civil process by means of a restraining order, preliminary or permanent injunction, or any other manner provided by law for the abatement of such nuisance. (Ord. No. 95-3, § 2, 3-20-95)
Chapter X

STOPPING, STANDING AND PARKING GENERALLY
§ 10-181 Application of regulations.
(a) The provisions of this title prohibiting the stopping, standing or parking of a vehicle shall apply at all times or at those times herein specified, except when it is necessary to stop a vehicle to avoid conflict with other traffic or in compliance with the directions of a police officer or official traffic-control device.
(b) The provisions of this title imposing a time limit on standing or parking shall not relieve any person from the duty to observe other and more restrictive provisions of the vehicle code or the ordinances of this city prohibiting or limiting the standing or parking of vehicles in specified places or at specified times.
(Code 1960, § 3410.0; Ord. No. 66-35, 8-15-66)
§ 10-182 Stopping or standing in parkways prohibited.

No person shall stop, stand or park a vehicle within any parkway. (Code 1960, § 3410.1; Ord. No. 66-35, 8-15-66)
§ 10-183 Transportation services engineer manager to maintain no stopping zones and no parking areas.

The transportation services engineer manager is hereby authorized to establish and maintain, by appropriate signs or by paint upon the curb surface, all no stopping zones, no parking areas, and restricted parking areas, as defined and described in this title. When said curb markings or signs are in place, no operator of any vehicle shall stop, stand or park a vehicle adjacent to any such legible curb marking or sign in violation of any of the provisions of this title.
(Code 1960, § 3402.2; Ord. No. 66-35, 8-15-66; Ord. No. 87-26, § 2, 12-7-87) 1093
§ 10-184 No parking areas.

No operator of any vehicle shall stop, stand, park or leave standing such vehicle in any of the following places, except when necessary to avoid conflict with other traffic or in compliance with the direction of a police officer or other authorized officer, or traffic sign or signal:
(a) Within any divisional island unless authorized and clearly indicated with appropriate signs or markings. (b) On either side of any street be tween the projected property lines of any public walk, public steps, street or thoroughfare terminating at such street, when such area is indicated by appropriate signs or by red paint upon the curb surface.
(c) In any area where the transportation services engineer manager determines that the parking or stopping of a vehicle would constitute a traffic hazard or would endanger life or property, when such area is indicated by appropriate signs or by red paint upon the curb surface. (d) In any area established by resolution of the city council as a no parking area, when such area is indicated by appropriate signs or by red paint upon the curb surface. (e) Upon, along or across any railroad tr ack in such manner as to hinder, delay or obstruct the movement of any railroad car traveling upon such track.
(f) In any area where the parking or stopping of any vehicle would constitute a traffic hazard or would endanger life or property.
(g) On any street or highway where the use of such st reet or highway or a portion thereof is necessary for the cleaning, repair or construction of the street or highway, or the installation of underground utilities, or where the use of the street or highway or any portion thereof is authorized for a purpose other than the normal flow of traffic, or where the use of the street or highway or any portion thereof is necessary for the movement of equipment, articles or structures of unusual size, and the parking of such vehicle would prohibit or interfere with such use or movement; provided that signs giving notice of no parking are erected or placed at least 24 hours prior to the effective time of such no parking. (h) At any place within 20 feet of a point on the curb immediately opposite the midblock end of a safety zone, when such place is indicated by appropriate signs or by red paint upon the curb surface. (i) Within 20 feet of the vehicle approach side of any marked or unmarked crosswalk or within 15 feet of any crosswalk where a curb extension is present.At any place within 20 feet on the approach side and 10 feet on the backside of a crosswalk at an intersection in any business district when such place is indicated by appropriate signs or by red paint upon the curb surface except that a bus may stop at a designated bus stop.
(j) Within 20 feet of the approach to any traffic signal, boulevard stop sign, yield sign or official electric flashing device, when such place is indicated by appropriate signs or by red paint upon the curb surface. (Code 1960, § 3410.3; Ord. No. 66-35, 8-15-66)
§ 10-185 Use of streets for parking and/or storage of certain vehicles prohibited. (a) Definitions. For the purposes of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
“Chief of police” means the Chief of Police of the City of Costa Mesa, or his or her designee. “Commercial vehicle” shall mean any vehicle having more than two axles, or any single commercial vehicle or combination of said vehicles which exceed 20 feet in length, any single commercial vehicle or 1094
combination of said vehicles 84 inches or more in width, or any single commercial vehicle or combination of said vehicles having a manufacturer’s gross vehicle weight rating of 10,000 pounds or more. A Commercial Vehicle includes a truck tractor, but does not include a large motor vehicle or nonmotorized vehicle as defined herein or a pick-up truck without a camper or sports utility vehicle. “Large motor vehicle” shall mean any house car, pick-up truck with camper, recreational vehicle or other vehicle that measures more than 22 feet in length or is both more than 84 inches in width and more than 84 inches in height. The term “large motor vehicle” does not include a commercial vehicle as defined herein, a pick-up truck without a camper or sports utility vehicle. “Nonmotorized vehicle” shall mean any trailer or any other device that is not self-propelled. “Motor vehicle” shall mean a passenger vehicle, pick-up truck without a camper, sports utility vehicle, motorcycle and motor-driven cycle but shall not include a house car. “Residential district” shall mean any area within the city which is zoned R1, R2-MD, R2-HD, R3, and those portions of planned community districts and specific plan districts which are specified for residential uses. (b) Measurements. To determine the width or length of the vehicles defined in this section, any extension to the vehicle caused by mirrors, air conditioners, or similar attachments shall not be included. (c) No person who owns or has possession, custody, or control of any motor vehicle shall park, or leave standing, such a motor vehicle upon any public street, highway or alley for more than a period of 72 consecutive hours.
(d) No person shall, at any time, park or leave sta nding any large motor vehicle or nonmotorized vehicle on any public street, highway or alley except:
(1) In residential districts, large mo tor vehicles or, nonmotorized vehicles attached to a motor vehicle or large motor vehicle, parked adjacent to the owner’s residence are allowed for the purposes of loading, unloading, cleaning, battery-charging, or other activity preparatory or incidental to travel for a period of time not to exceed 48 consecutive hours.
(2) In residential districts, large motor vehicles or, nonmotorized vehicles attached to a motor vehicle, parked adjacent to the owner’s residence may be allowed for up to an additional 24 consecutive hours, but no more than a total of 72 consecutive hours, provided an extension has been granted by the chief of police. The chief of police shall establish general standards for an extension provided for by this section. (3) Any large motor vehicle, or nonmot orized vehicle which is attached to a motor vehicle or large motor vehicle that is parked on a public street pursuant to either subsections (1) or (2) hereinabove shall, at the end of the permitted period of time, whether 48 or 72 hours, be removed from its location and shall not be parked on any public street for the purposes stated hereinabove for a period of at least 48 hours. (e) No person who owns or has possession, custody or control of any vehicle or nonmotorized vehicle which is six feet or more in height (including any load thereon) shall park or leave standing any such vehicle on a street or highway within 45 feet of any intersection. (f) No person who owns or has possession, custody or control of any commercial vehicle exceeding a manufacturers gross vehicle weight of 10,000 pounds, shall park or leave standing any such commercial vehicle on a street or highway which is prohibited to commercial vehicle traffic pursuant to section 10- 248 of this Code.
(g) No person who owns or has possession, custody or control of any commercial vehicle exceeding a manufacturers gross vehicle weight of 10,000 pounds, shall park or leave standing any such commercial 1095
vehicle on any restricted street between the hours of 2:00 a.m. and 6:00 a.m. (h) No person who owns or has possession, custody, or control of a commercial vehicle exceeding a manufacturers gross vehicle weight of 10,000 pounds, shall park or leave standing any such commercial vehicle for more than three hours on any public street, highway, roadway, alley or thoroughfare, except:
(1) For such reasonable time in excess of three hours that may be necessary for the purpose of making pickups or deliveries of goods, wares, and merchandise from or to any building or structure or for the purpose of delivering materials to be used for repair, alteration, remodeling, or construction of any building or structure upon a restricted street or highway; or (2) For such reasonable time in excess of three hours that may be necessary when such vehicle is parked in connection with the performance of a service to or on a property in the block in which such vehicle is parked; or
(3) For such reasonable time in excess of three hours that may be necessary time to make emergency repairs.
(i) Vehicles found in violation of this section may be cited or removed, or both cited and removed in accordance with section 10-69.
(j) The minimum fine for any violati on of this section shall be set by the city council by separate resolution. (Ord. No. 02-15, §§ 1, 2, 8-5-02)
§ 10-186 Reserved.Parking for advertising or sale.
(a) No operator of any vehicle shall park said vehicle upon any street in the city for the principal purpose of advertising or displaying it for sale, unless authorized by resolution of the city council.
(b) No person shall park any vehicle upon any st reet for the purpose of advertising any item or event.
(Code 1960, § 3410.5; Ord. No. 66-35, 8-15-66)
§ 10-187 Repairing or greasing vehicles.

No person shall construct or dismantle or cause to be constructed or dismantled, repair or cause to be repaired, grease or cause to be greased any vehicle or any part thereof upon any public street in the city.

Temporary emergency repairs may be made upon a public street. (Code 1960, § 3410.6; Ord. No. 66-35, 8-15-66)
§ 10-188 Washing or polishing vehicles.

No person shall wash or cause to be washed, polish or cause to be polished any vehicle or any part thereof upon any public street in the city, when a charge is made for such service. (Code 1960, § 3410.7; Ord. No. 66-35, 8-15-66)
§ 10-189 Parking adjacent to schools.
(a) The transportation services engineer manager is hereby authorized to erect signs indicating no parking upon that side of any street adjacent to any school property when such parking would, in his or her opinion, interfere with traffic or create a hazardous situation. (b) When official signs are erected prohibiting parking upon that side of a street adjacent to any school property, no person shall park a vehicle in any such designated place. 1096
(Code 1960, § 3410.8; Ord. No. 66-35, 8-15-66)
§ 10-190 Parking prohibited on narrow streets.
(a) The city transportation services engineer manager is hereby authorized to place signs or markings indicating no parking upon any street when the width of the roadway does not exceed 20 feet, or upon one side of a street as indicated by such signs or markings when the width of the roadway does not exceed 30 feet.
(b) When official signs or mark ings prohibiting parking are erected upon narrow streets as authorized herein, no person shall park a vehicle upon any such street in violation of any such sign or marking. (Code 1960, § 3410.9; Ord. No. 66-35, 8-15-66)
§ 10-191 Parking on grades.

No person shall park or leave standing any vehicle unattended on a highway when upon any grade exceeding 3% without blocking the wheels of such vehicle by turning them against the curb or by other means. (Code 1960, § 3410.10; Ord. No. 66-35, 8-15-66)
§ 10-193 Emergency parking signs.
(a) Whenever the city transportation services engineer manager or chief of police shall determine that an emergency traffic congestion is likely to result from the holding of public or private assemblages, gatherings or functions, or for other reasons, the city transportation services engineer manager shall have power and authority to order temporary signs to be erected or posted indicating that the operation, parking or standing of vehicles is prohibited on such streets and alleys as the city transportation services engineer manager shall direct during the time such temporary signs are in place. Such signs shall remain in place only during the existence of such emergency and the city transportation services engineer manager shall cause such signs to be removed promptly thereafter. (b) When signs authorized by the provisions of this section are in place giving notice thereof, no person shall operate, park or stand any vehicle contrary to the directions and provisions of such signs. (Code 1960, § 3410.11; Ord. No. 66-35, 8-15-66)
§ 10-194 Sleeping in motor vehicles prohibited.

It is unlawful for any person to sleep in or on any motor vehicle parked any place in the city, other than upon private residential property, at any time between the hours of 9:00 p.m. and 7:00 a.m., or to dwell and/or live in or on any motor vehicle parked upon any city owned, operated, or maintained street, sidewalk, alley, public right-of-way, or any other public property or any private property within the city at any time. This section is not intended to prohibit the use of campers or motor coaches or motor vans for sleeping and/or dwelling purposes where the same are parked in an authorized trailer court or campsite within the city. As used in this section, “dwell” means to use as a basic residence for shelter, sleeping and/or cooking purposes in lieu of traditional code compliant building structures designed for human habitation. (Code 1960, § 3418.1; Ord. No. 66-35, 8-15-66; Ord. No. 68-31, 7-15-68; Ord. No. 19-09, § 4, 4-2-19; Ord.

No. 19-10, § 3, 4-16-19)
§ 10-195 Visibility.

Any motor vehicle parked on the public streets shall have curtains or window obstructions in such a position that there shall be a full view of the interior at all times. (Code 1960, § 3418.2; Ord. No. 66-35, 8-15-66; Ord. No. 68-31, 7-15-68) 1097
§ 10-196 No parking at Placentia Avenue Fire Station.

It is unlawful for any person to park other than publicly owned and operated vehicles on any of the property owned by the city presently occupied by the Placentia Avenue Fire Station and the city corporation yard, between the hours of 6:00 p.m. and 6:00 a.m.
(Ord. No. 74-68, § 2, 12-17-74)
§ 10-197 Posting.

Signs designating no parking between the hours of 6:00 p.m. and 6:00 a.m. which conform to the manual on uniform traffic control devices shall be placed at the vehicle entryways to the Placentia Avenue Fire Station and corporation yard, and the parking area therein shall be posted with said signs at intervals of not less than 200 feet.
(Ord. No. 74-68, § 2, 12-17-74)
§ 10-198 Removal of parked vehicles from private property. (a) Any owner or person in possession of private property may cause the removal of a parked vehicle from such private property when either of the following conditions is satisfied:
(1) The property is improved with a single-family dwelling; or (2) There is displayed, in plain view at all entrance s to the property, a sign at least 18 inches by 24 inches prohibiting public parking and indicating that vehicles will be removed at the owner’s expense, and containing the telephone number of the Costa Mesa Police Department. (b) The person causing removal of a vehicle pursuant to subsection (a) of this section shall comply with all applicable requirements of California Vehicle Code 22658. (c) The provisions of subsection (a) of this section shall also apply to city-owned property and property rented or leased by the city from another person or entity; the request for removal may be made by any employee of the police department, who shall comply with the applicable provisions of section 10-69 of this Code.
(Ord. No. 85-12, § 2, 5-6-85)
§ 10-199 Failure to display handicapped parking placard.

It is unlawful for any person to fail to display a handicapped placard or license that has been lawfully issued to that person on any vehicle parked in a stall or space designated for handicapped persons pursuant to the vehicle code. Any violation of this section shall be subject to a civil penalty in the amount of $35. For purposes of this section, handicapped placard or license shall mean the distinguishing placard issued pursuant to Vehicle Code section 22511.55 or 22511.59 or the special identification license plate issued pursuant to Vehicle Code section 5007.
(Ord. No. 00-15, § 1, 9-18-00)
Chapter XI

STOPPING, STANDING OR PARKING RESTRICTED OR PROHIBITED ON

CERTAIN STREETS
Article 1
1098
In General
§ 10-207 Twenty-four-minute parking.
(a) Green curb marking shall mean no standing or parking for a period of time longer than 24 minutes at any time between 7:00 a.m. and 6:00 p.m. on any day except Sundays and holidays. (b) The transportation services engineer manager is hereby authorized to establish and maintain, by appropriate signs, markings, or parking meters, twenty-four-minute, one-hour, or two-hour time limit parking zones. When said signs, parking meters, or curb markings are in place, it is unlawful for the operator of any vehicle to stop, stand or park a vehicle adjacent to any such legible curb marking or sign in violation of any of the provisions of this title.
(c) The transportation services engineer manager is hereby authorized to change the aforementioned parking time period, the hour or the days as set forth in this section. (Code 1960, § 3411.0; Ord. No. 66-35, 8-15-66; Ord. No. 72-22, § 2, 6-15-72; Ord. No. 87-26, § 2, 12-7-87) § 10-208 One-hour parking.
(a) When authorized signs, parking me ters or curb markings have been determined by resolution of the city council to be necessary and are in place giving notice thereof, no operator of any vehicle shall stop, stand or park said vehicle between the hours of 7:00 a.m. and 6:00 p.m. of any day except Sundays and holidays for a period of time longer than one hour.
(b) The hour limitation, the hours during which it shall be effective and the days on which it shall be effective may be altered or changed from time to time by resolution duly adopted by the city council. (Code 1960, § 3411.1; Ord. No. 66-35, 8-15-66; Ord. No. 72-22, § 2, 6-15-72) § 10-209 Two-hour parking.
(a) When authorized signs, parking me ters or curb markings have been determined by resolution of the city council to be necessary and are in place giving notice thereof, no operator of any vehicle shall stop, stand or park said vehicle between the hours of 7:00 a.m. and 6:00 p.m. of any day except Sundays and holidays for a period of time longer than two hours.
(b) The two-hour limitation, the hours during which it sh all be effective and the days on which it shall be effective may be altered or changed from time to time by resolution duly adopted by the city council. (Code 1960, § 3411.2; Ord. No. 66-35, 8-15-66; Ord. No. 72-22, § 2, 6-15-72) § 10-210 Parking parallel on one-way streets.
(a) Subject to other and more restri ctive limitations, a vehicle may be stopped or parked within 18 inches of the left-hand curb facing the direction of traffic movement upon any one-way street unless signs are in place prohibiting such stopping or standing.
(b) In the event a highway includes two or more separate roadways and traffic is restricted to one direction upon any such roadway, no person shall stand or park a vehicle upon the left-hand side of such oneway roadway unless signs are in place permitting such standing and parking. (c) The transportation services engineer manager is authorized to determine when standing or parking shall be prohibited upon the left-hand side of any one-way street or when standing or parking may be permitted upon the left-hand side of any one-way roadway of a highway having two or more separate roadways and shall erect signs giving notice thereof.
(d) The requirement of parallel parki ng imposed by this section shall not apply in the event any commercial 1099
vehicle is actually engaged in the process of loading or unloading freight or goods, in which case such vehicle may be backed up to the curb, provided that such vehicle does not extend beyond the center line of the street and does not block traffic thereby.
(Code 1960, § 3411.3; Ord. No. 66-35, 8-15-66)
§ 10-211 Diagonal parking.
(a) On any of the streets or portions of streets or portions of streets established by resolution of the city council as diagonal parking zones, when signs or pavement markings are in place indicating such diagonal parking, it is unlawful for the operator of any vehicle to park said vehicle except at the angle to the curb indicated by such signs or pavement markings allotting space to parked vehicles and entirely within the limits of said allotted space, and with the front wheel nearest the curb within six inches of the curb.
(b) The provisions of this section shall not apply when such vehicle is actually engaged in the process of loading or unloading passengers, freight or goods, in which event the provisions applicable in section 10-210 of this title shall be complied with.
(Code 1960, § 3411.4; Ord. No. 66-35, 8-15-66)
§ 10-212 Parking space markings.
(a) The transportation services engineer manager is authorized to install and maintain parking space markings to indicate parking spaces adjacent to curbings curbs where authorized parking is permitted. (b) When such parking space markings are placed on the highway, subject to other and more restricted limitations, no vehicle shall be stopped, left standing or parked other than within a single space unless the size or shape of such vehicle makes compliance impossible. (Code 1960, § 3411.5; Ord. No. 66-35, 8-15-66)
§ 10-213 No stopping zones.

The transportation services engineer manager is hereby authorized to establish no stopping and no parking zones by placing and maintaining appropriate signs or curb markings. It is unlawful for the operator of any vehicle to stop said vehicle on any of the streets or parts of streets when restricted by the appropriate signs or markings.
(Code 1960, § 3411.6; Ord. No. 66-35, 8-15-66; Ord. No. 87-26, § 2, 12-7-87) Article 2
Restricted Parking on City-Owned Property
§ 10-214 Definition.

For purposes of this article, “vehicle” shall mean any truck, trailer, camper, motor van, house car, passenger automobile or other vehicle licensed to be driven or towed upon a public street or highway. (Ord. No. 77-9, § 2, 2-22-77)
§ 10-215 Prohibited parking.

It is unlawful for any person, firm, corporation, or other entity to park other than city-owned or operated vehicles on city-owned property posted with signs as herein provided. (Ord. No. 77-9, § 2, 2-22-77)
1100
§ 10-216 Exceptions.

Section 10-215 shall not apply to persons having legitimate city business to conduct at said premises, vehicles belonging to persons attending city council, planning or traffic commission meetings, or departmental seminars, vehicles belonging to city officers and employees, or to any vehicle actively engaged in loading or unloading goods or merchandise, or any vehicle undergoing emergency repairs, or to any wrecker or similar vehicle actively engaged in the repair or construction of improvements on municipal parking facilities.
(Ord. No. 77-9, § 2, 2-22-77)
§ 10-217 Presumption.

Vehicles not falling within the previous section which are parked upon city-owned property on weekends, or during the hours of 5:00 p.m. to 8:00 a.m. on weekdays, when no evening meetings as described in section 10-216 above are being held, shall be presumed to be illegally parked. (Ord. No. 77-9, § 2, 2-22-77)
§ 10-218 Posting.

Signs designating restricted parking and bearing the legend “parking for city business only,” pursuant to this article, shall be posted on such municipal property as otherwise provided by law. (Ord. No. 77-9, § 2, 2-22-77)
§ 10-219 Penalty.

Violations herein shall be punishable under section 1-33 of the Costa Mesa Municipal Code. (Ord. No. 77-9, § 2, 2-22-77)
§ 10-220 Enforcement.

Any regularly employed and salaried police officer or , police cadet, or any non-safety city employee empowered to issue citations pursuant to section 1-33.1 of this Code and implementing resolutions of the city council, is authorized to enforce the provisions of this article. Vehicles found parked in violation of this article may be cited or removed in accordance with the provisions of section 10-69. (Ord. No. 77-9, § 2, 2-22-77; Ord. No. 80-13, § 1, 8-18-80) Article 3
Parking by Permit Only
§ 10-221 Parking of unpermitted vehicles prohibited.

When authorized signs have been posted pursuant to resolution of the city council and are in place giving notice of restrictions, it is unlawful and an infraction for any person to park any vehicle on any public street or alley so restricted, unless a parking permit therefor has been issued by the city as provided for in this article. This restriction shall not apply to police vehicles or other authorized emergency vehicles and/or city- owned vehicles when used for official business, or to service vehicles, clearly marked as such, while the owner or operator of the vehicle is providing a service to a residence located in that residential permit parking zone.
(Ord. No. 16-02, § 1, 1-19-16; Ord. No. 22-04, § 1, 7-19-22) § 10-221.1 Issuance of permits to residents.

Except for emergency permits and as otherwise provided for in section 10-221.2, parking permits may be issued only to residents of those areas where parking has been limited or prohibited pursuant to this article as 1101
a residential permit parking zone.
(Ord. No. 16-02, § 1, 1-19-16; Ord. No. 22-04, § 1, 7-19-22) § 10-221.2 Types of permits.
(a) Residential parking permits.
(1) Except as otherwise provided for in this article, a resident of a dwelling unit within an area that has been designated as a residential permit parking zone may be issued one parking permit per eligible driver by filing an application therefore with the public services department pursuant to the provisions of this article.
(2) A motor vehicle that has been issued a parking perm it for a residential parking zone shall be permitted to stand and/or park in that zone without being limited by the parking restrictions established pursuant to this article.
(3) The maximum number of residential parking permits that shall be authorized to any one dwelling unit shall be four.
(b) Guest parking permits.
(1) Each resident parking permit hol der may apply for temporary guest parking permits for use by his or her guests in the parking zone where the permit holder resides by submitting an application therefore to the public services department.
(2) A parking permit holder may receive up to a max imum of 100 guest parking permits per year per dwelling unit, which must be displayed by guests of such permit holder. (c) Residential permit parking policy. The city council, the city manager and/or designee may adopt policies and/or administrative regulations to implement this article, including, but not limited to, the establishment of residential permit parking zones and the criteria for the issuance, denial, revocation, duration and/or number of permits.
(Ord. No. 16-02, § 1, 1-19-16; Ord. No. 22-04, § 1, 7-19-22) § 10-221.2.5 Definitions.

Words and phrases not defined herein shall have the meanings ascribed to them in this Title 10, Title 1 and Title 13.

Director means the director of the public servicesworks department or his or her designee.

Eligible driver means a licensed driver identified as the registered owner of a currently registered vehicle who resides in a dwelling unit within an area that has been designated as a residential permit parking zone.

Permit means a residential parking permit issued by the director pursuant to the provisions of this article.

Residential permit parking policy or policy means the residential permit parking policy and/or administrative regulations adopted by the city to implement this article pursuant to section 10-221.2(c).

Residential permit parking zone or zone means a contiguous area within the city comprised of one or more streets and/or alleys that have been designated for parking by residents of that area only pursuant to this article.
1102
(Ord. No. 22-04, § 1, 7-19-22)
§ 10-221.3 Application for permit and action thereon.
(a) To be issued a residential parking permit, each elig ible driver shall provide the following to the public worksservices department:
(1) The applicant’s full, true name and home address, and proof of residence; (2) The applicant’s driver license;
(3) A valid and current vehicle registration and license plate number of the vehicle for which a permit is sought;
(4) The applicable fee; and
(5) Such other information set forth in the policy.
(b) Staff shall issue a temporary permit to an eligible driver for a rented or borrowed registered vehicle where the eligible driver residing in a residential permit parking zone, demonstrates their own vehicle is unavailable for that driver’s use for a temporary period. Such permits will expire upon the return to use of the originally permitted vehicle or its replacement. (c) Permits will not be i ssued for commercial vehicles that are registered to business addresses. (d) The denial, suspension and/or re vocation of a residential parking permit and/or eligibility therefore by the director pursuant to this article may be appealed to the Planning Commission pursuant to Article 2 of Chapter IX of this Code.
(e) Each type of permit applied for and/or renewed pursuant to this article shall be subject to a fee or fees as established by the city council.
(Ord. No. 16-02, § 1, 1-19-16; Ord. No. 22-04, § 1, 7-19-22) § 10-221.4 Duration of permits.
(a) Residential parking permits shall be valid for one year, unless earlier revoked or terminated, provided however that a permit shall automatically terminate when the permit holder ceases to reside in the designated residential permit parking zone.
(b) No residential parking permit issued pursuant to this article shall be transferable from the permit holder to any other person, nor from one vehicle to another.
(c) Nothing in this article, nor any permit issued purs uant thereto, shall authorize a violation of section 10185.
(d) The city council may establish by resolution an e xpiration date for all outstanding residential and guest parking permits if the city council determines that an unacceptable number of permits are being used by nonresidents of the designated permit-parking zone or that permits are being used in a manner inconsistent with and/or in violation of the purposes of this article. (Ord. No. 16-02, § 1, 1-19-16; Ord. No. 22-04, § 1, 7-19-22) § 10-221.5 Violations.
(a) Parking a vehicle in violation of this article shall be an infraction. 1103
(b) It shall be a violation of this article and an infraction for any person to falsely represent himself or herself as eligible for a residential parking permit or to furnish false information in an application therefor.
(c) It shall be a violation of this article and an infraction for any person issued a residential parking permit pursuant to this article to allow the use of such permit for a motor vehicle other than that for which the permit was issued. Any person who so uses a residential parking permit on a motor vehicle other than that for which it was issued is likewise guilty of a violation of this article, and an infraction. (d) It shall be a violation of this article and an infraction for any person to copy, produce, or otherwise bring into existence a facsimile or counterfeit parking permit. Any person who knowingly uses a facsimile or counterfeit parking permit, with intent to evade prohibitions or limitations on parking in a designated permit-parking area, is likewise guilty of a violation of this article, and an infraction. (e) It shall be a violation of this article and an infraction for any person to sell to, transfer to, or exchange a parking permit with any other person except as provided for in this article. (f) In addition to any other penaltie s under this article, the director may revoke, cancel or suspend a permit and/or eligibility therefore based upon a violation of subsection (b), (c), (d) and/or (e) above. (Ord. No. 16-02, § 1, 1-19-16; Ord. No. 22-04, § 1, 7-19-22) § 10-222 Parking on city property—Designatio n of “permit parking only” areas.

The city manager may designate portions of city-owned property other than streets, alleys or highways, for parking by permit only and may order the posting of signs bearing the legend, “Permit Parking Only.” (Ord. No. 89-30, § 2, 12-4-89; Ord. No. 22-04, § 1, 7-19-22) § 10-223 Same—Prohibited parking.

When authorized signs have been posted and are in place giving notice of restrictions as provided in this article, it is unlawful and an infraction for any person to park or leave parked a vehicle within an area designated for parking by permit during the times when such parking is prohibited, other than a vehicle that has been issued a valid permit or exempted pursuant to section 10-221. (Ord. No. 89-30, § 2, 12-4-89; Ord. No. 22-04, § 1, 7-19-22) § 10-224 Same—Enforcement.

Any regularly employed and salaried police officer or police cadet, or any non-safety city employee empowered to issue citations pursuant to section 1-33.1 of this Code and implementing resolutions of the city council, is authorized to enforce the provisions of sections 10-221.5 through 10-224 by issuing infraction citations.
(Ord. No. 89-30, § 3, 12-4-89; Ord. No. 22-04, § 1, 7-19-22) Chapter XII

STOPPING FOR LOADING OR UNLOADING ONLY
§ 10-225 Authority to establish loading zones.
(a) The city transportation services engineer manager is hereby authorized to determine and to mark loading zones and passenger loading zones as follows:
(1) At any place in any business district.
(2) Elsewhere in front of the entrance to any place of business or in front of any hall or place used for the 1104
purpose of public assembly.
(b) In no event shall more than one-half (½) of the tota l curb length in any block be reserved for loading zone purposes.
(c) Loading zones shall be indicated by yello w paint upon all curbs within such zones. (d) Passenger loading zones shall be indicated by white paint upon all curbs in said zones. (Code 1960, § 3412.0; Ord. No. 66-35, 8-15-66)
§ 10-226 Curb markings to indicate no stopping and parking regulations.

The transportation services engineer manager is hereby authorized, subject to the provisions and limitations of this title, to place, and when required herein shall place, the following curb markings to indicate parking or standing regulations, which curb markings shall have the following meanings:
(a) Red shall mean no stopping, standing or parking at any time except as permitted by the vehicle code, and except that a bus may stop in a red zone marked or signed as a bus zone. (b) Yellow shall mean no stopping, standing or parking at any time between 7:00 a.m. and 6:00 p.m. of any day except Sundays and holidays for any purpose other than the loading or unloading of passengers or materials, provided that the loading or unloading of passengers shall not consume more than three minutes nor the loading or unloading of materials more than 20 minutes. (c) White shall mean no stopping, standing or parking for any purpose other than loading or unloading of passengers, or for the purpose of depositing mail in an adjacent mailbox, which shall not exceed three minutes and such restrictions shall apply between 7:00 a.m. and 6:00 p.m. of any day except Sundays and holidays and except as follows:
(1) When such zone is in front of a theater, restrictions shall apply at all times except when such theater is closed.
(2) When such zone is in front of a church, hotel or mailbox, the restrictions shall apply at all times. (d) When the transportation services engineer manager as authorized under this title has caused curb markings to be placed, no person shall stop, stand or park a vehicle adjacent to any such legible curb marking in violation of any of the provisions of this section. (Code 1960, § 3412.1; Ord. No. 66-35, 8-15-66)
§ 10-227 Effect of permission to load or unload.
(a) Permission herein granted to st op or stand a vehicle for purposes of loading or unloading of materials shall apply only to commercial vehicles and shall not extend beyond the time necessary therefor, and in no event for more than 20 minutes.
(b) The loading or unloading of mate rials shall apply only to commercial deliveries, also the delivery or pickup of express and parcel post packages and United States mail. (c) Permission herein granted to stop or park for pur poses of loading or unloading passengers shall include the loading or unloading of personal baggage but shall not extend beyond the time necessary therefor and in no event for more than three minutes.
(d) Within the total time limits abov e specified, the provisions of this section shall be enforced so as to accommodate necessary and reasonable loading or unloading but without permitting abuse of the 1105
privileges hereby granted.
(Code 1960, § 3412.2; Ord. No. 66-35, 8-15-66)
§ 10-228 Standing for loading or unloading only.

No person shall stop, stand or park a vehicle in any yellow loading zone for any purpose other than loading or unloading passengers or material for such time as is permitted in section 10-227. (Code 1960, § 3412.3; Ord. No. 66-35, 8-15-66)
§ 10-229 Standing in passenger loading zone.

No person shall stop, stand or park a vehicle in any passenger loading zone for any purpose other than the loading or unloading of passengers for such time as is specified in section 10-227. (Code 1960, § 3412.4; Ord. No. 66-35, 8-15-66)
§ 10-230 Standing in alley.

No person shall stop, stand or park a vehicle for any purpose other than the loading or unloading of persons or materials in any alley.
(Code 1960, § 3412.5; Ord. No. 66-35, 8-15-66)
§ 10-231 Bus zones.

The transportation services engineer manager is hereby authorized to establish bus zones opposite curb space for the loading and unloading of buses or common carriers of passengers, to determine the location thereof, and to paint the curb red at said bus zone curb space.
(Code 1960, § 3412.6; Ord. No. 66-35, 8-15-66; Ord. No. 87-26, § 2, 12-7-87) § 10-232 Buses transporting minor children.

All buses, except those specifically exempted in section 10-235, transporting minor children under 18 years of age either gratuitously or for compensation, shall, while operating within the city, carry in addition to the driver an adult person 18 years of age or over.
(Code 1960, § 3412.7; Ord. No. 66-35, 8-15-66)
§ 10-233 Duty of accompanying nondriver adult.

At all stops made on city streets by buses for the purpose of discharging minor children from the buses, the accompanying nondriver adult shall precede the minor children from the bus, and shall then accompany them across any street that such minor children must cross.
(Code 1960, § 3412.8; Ord. No. 66-35, 8-15-66)
§ 10-234 Reserved. Accompanying nondriver adult to carry vehicle warning device.

Every nondriver adult riding on buses transporting minor children shall carry a vehicle warning device to be provided by the city, and shall, when accompanying a minor child or children across any street, use such vehicle warning device.
(Code 1960, § 3412.9; Ord. No. 66-35, 8-15-66)
§ 10-235 Exceptions to sections 10-232, and 10-233 and 10-234.

The provisions of sections 10-232, and 10-233 and 10-234, inclusive, shall not apply to the following buses transporting minor children within the city: 1106
(a) Any school bus, either public or privat e, regulated by the State of California. (b) Any commercial carrier buses regu lated by the State of California. (Code 1960, § 3412.10; Ord. No. 66-35, 8-15-66)
Chapter XIII

RESTRICTED USE OF CERTAIN STREETS
§ 10-247 Advertising vehicles.

No person shall operate or drive any vehicle used for advertising purposes or any advertising vehicle equipped with a sound-amplifying or loudspeaking device upon any street or alley at any time without first securing a permit to do so from the city council, or its designate. (Code 1960, § 3413.0; Ord. No. 66-35, 8-15-66)
§ 10-248 Truck routes.
(a) Whenever any resolution of the c ity council designates and describes any street or portion thereof as a street the use of which is permitted by any vehicle exceeding a maximum gross weight of 10,000 pounds.
(b) When any such truck route is established and designated by appropriate signs, the operator of any vehicle exceeding a maximum gross weight limit of 10,000 pounds shall drive on such route and none other, except that the operator of any vehicle exceeding a maximum gross weight of 10,000 pounds coming from a truck route may use restricted streets when necessary for the purpose of making pickups or deliveries of goods, wares and merchandise from or to any building or structure located on such restricted streets or for the purpose of delivering materials to be used in the actual and bona fide repair, alteration, remodeling or construction of any building or structure upon such restricted streets for which a building permit has previously been obtained. The phrase “maximum gross weight” used in this section shall have the same meaning as the phrase “manufactured gross vehicle weight rating” defined in the California Vehicle Code section 390.
(c) The provisions of this se ction shall not apply to:
(1) Passenger buses under the jurisdiction of the Pu blic Utilities Commission, Metropolitan Transit Authority; or
(2) Any vehicle owned by a public util ity while necessarily in use in the construction, installation of or repair of any public utility.
(d) Those streets and parts of street s established by resolution of the city council are hereby declared to be the truck routes for the movement of vehicles exceeding a maximum gross weight of 10,000 pounds. (e) The use of any street or part of any street not established as part of the truck route is hereby prohibited by any commercial vehicle (as defined by California Vehicle Code section 260) exceeding a maximum gross weight of 10,000 pounds, except as allowed in subsections (b) and (c) above. Appropriate signs shall be posted as designated by the California Department of Transportation “Traffic Manual” in accordance with criteria established by the transportation services manager of the City of Costa Mesa, showing which streets are truck routes. It is unlawful for any person to operate or park, or cause to be operated or parked, any vehicle in violation of this provision. (Code 1960, § 3413.1; Ord. No. 66-35, 8-15-66; Ord. No. 86-22, § 2, 11-17-87; Ord. No. 92-4, § 2, 2-3-92) 1107
§ 10-249 Load limit.

The transportation services engineer manager is hereby authorized to establish and post signs giving notice of a maximum load limit of 6,000 pounds per vehicle on any street or part of a street which is not a truck route. (Ord. No. 75-51, § 2, 11-3-75; Ord. No. 87-26, § 2, 12-7-87) § 10-250 Penalty.

Exceeding the load limit as set forth in section 10-249 shall be deemed a misdemeanor and shall be punishable as set forth in section 1-33 of the Costa Mesa Municipal Code. (Ord. No. 75-51, § 2, 11-3-75)
Chapter XIV

PARKING METERS
§ 10-261 Parking meter zones.
(a) Parking meter zones are those stre ets or portions of streets established by ordinance of the city council as zones within which the parking of vehicles shall be controlled, regulated and inspected with the aid of parking meters.
(b) The city transportation services engineer manager shall cause parking meters to be installed and maintained in all parking meter zones, once said zones have been created by the city council. (Code 1960, § 3414.0; Ord. No. 66-35, 8-15-66)
§ 10-262 Manner of installation.
(a) Parking meters shall be installed upon the curb or sidewalk area immediately adjacent to each parking space. Each meter shall be placed in such a manner as to show or display by a sign or signal that the parking space thereto is or is not legally in use.
(b) Each parking meter shall be set to display, after the operational procedure has been completed, a sign or signal indicating legal parking for that period of time conforming to the limit of parking time for the zone in which said parking meter is installed, and shall continue to operate from the time of the completion of the operational procedure until the expiration of the time fixed as the parking limit or a portion thereof for the part of the street upon which said meter is placed. Each said meter shall also be so arranged that upon the expiration of said legal parking time, it will indicate by a mechanical operation and by proper signal that the lawful parking period has expired. (Code 1960, § 3414.1; Ord. No. 66-35, 8-15-66)
§ 10-263 Time of operation of parking meters.

The provisions of this chapter relating to the operation of parking meters shall be effective between the hours of 9:00 a.m. and 6:00 p.m. of every day except Sundays and holidays. (Code 1960, § 3414.2; Ord. No. 66-35, 8-15-66)
§ 10-264 Operational procedure to be followed.

Immediately after occupancy of a parking meter space, the operator of a vehicle shall deposit a coin of the United Statesprovide payment in the parking meter and if necessary turn a crank, knob or handle or online application in accordance with the instructions posted on the face of the parking meter or applicable signage. (Code 1960, § 3414.3; Ord. No. 66-35, 8-15-66)
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§ 10-265 Unlawful to park after meter time has expired.

No operator of any vehicle shall permit said vehicle to remain parked in any parking space during any time that the meter is showing a signal indicating that such space is illegally in use other than such time immediately after the original occupancy as is necessary to operate the meter to show legal parking. (Code 1960, § 3414.4; Ord. No. 66-35, 8-15-66)
§ 10-266 Unlawful to extend time beyond limit.

No person shall follow the operational procedure or any part of the operational procedure for the purpose of increasing or extending the parking time of any vehicle beyond the legal parking time which has been established for the parking space adjacent to which said parking meter is placed. (Code 1960, § 3414.5; Ord. No. 66-35, 8-15-66)
§ 10-267 Improper use of meter.

No person shall deposit or cause to be deposited in any parking meter any defaced or bent coin, or any slug, device or metallic substitute for a coin of the United States, nor shall any person deface, injure, tamper with, open or willfully break, destroy or impair the usefulness of any parking meter. (Code 1960, § 3414.6; Ord. No. 66-35, 8-15-66)
§ 10-268 Reserved. Deposit of coins in meter by unauthorized person.

No person, other than the owner or operator of a vehicle, shall deposit any coin in any parking meter without the knowledge or consent of the owner or operator of the vehicle using the parking space immediately adjacent to the meter.
(Code 1960, § 3414.7; Ord. No. 66-35, 8-15-66)
§ 10-269 Parking meters and parking meter standards not to be used for certain purposes.

No person shall attach anything to or allow a bicycle, news rack or any other article or thing to lean against a parking meter or a parking meter standard.
(Code 1960, § 3414.8; Ord. No. 66-35, 8-15-66)
§ 10-270 Rule of evidence.

The parking or standing of any motor vehicle in a parking space, at which space the parking meter displays the sign or signal indicating illegal parking, shall constitute prima facie evidence that the vehicle has been parked or allowed to stand in such space for a period longer than permitted by this chapter. (Code 1960, § 3414.9; Ord. No. 66-35, 8-15-66)
§ 10-271 Use of money deposited in parking meters.

All monies collected from parking meters in the city shall be placed in a special fund, hereby established and designated as the “Parking Fund,” which fund shall be devoted exclusively to the following purposes:
(a) For the purchasing, leasing, installing, repair ing, maintaining, operating, removing, regulating and policing of parking meters in the city and for the payment of any and all expenses relating or incidental thereto.
(b) For the purchasing, leasing, acquiring, improvin g, operating and maintaining of off-street parking facilities in the city.
(c) For the proper regulation, c ontrol and inspection of parking and traffic upon the public streets. 1109
(Code 1960, § 3414.10; Ord. No. 66-35, 8-15-66)
§ 10-272 Application of other chapters.

No section of this chapter shall be construed as permitting any parking in violation of any other provision of this title.
(Code 1960, § 3414.11; Ord. No. 66-35, 8-15-66)
Chapter XV

VEHICLE PARKING DISTRICTS
Article 1
In General
§ 10-284 Board of parking place commissioners; term.
(a) The two three-member commissions for vehicle park ing districts 1 and 2 are hereby merged into one five-member commission.
(b) The redevelopment agency board members as pr esently constituted or hereafter appointed are the members of the new parking place commission. In the event of a vacancy within the redevelopment agency, an automatic vacancy will result on the board of parking place commissioners until such vacancy within the redevelopment agency is filled. The terms of the board of parking place commissioners shall run concurrently with the terms of the redevelopment agency board members. (Code 1960, § 2515; Ord. No. 76-43, § 2, 9-7-76)
§ 10-285 Two-hour parking in districts.
(a) There is hereby established for all off-street pa rking places owned and/or operated by and under the control of the parking commission under the city council, within Costa Mesa Vehicle Parking District 1 a parking limit of two hours between the hours of 7:00 a.m. and 6:00 p.m. of any day except Sundays and holidays.
(b) This section shall be effective upon the posting of appropriate signs marking such parking lots for two hour parking.
(c) Any person violating any of the provisions of this section shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than $50 or by imprisonment in the county jail for not more than five days, or by both such fine and imprisonment. (Res. No. 655, §§ 1—3, 10-19-59; Ord. No. 97-3, § 1, 2-18-97) Article 2
Vehicle Parking District No. 1
§ 10-294 Formation.

The city council hereby declares that Vehicle Parking District No. 1, wholly located in the incorporated territory of the city as hereinafter described, is hereby formed pursuant to the Vehicle Parking District Law of 1943. The boundaries of said district are hereby fixed, established and defined as follows:

Beginning at the point of intersection of the centerline of Newport Avenue and the northwesterly prolongation of the northeasterly line of Lot 2, Block “B,” of Harper, as said Newport Avenue and Lot 2 are shown on a map thereof recorded in Book 6, page 27, of Miscellaneous Maps, records of Orange County, California; thence southeasterly along the northwesterly prolongation of the northeasterly line of said Lot 2 and along said northeasterly line and the southeasterly prolongation thereof to an intersection with the 1110
centerline of the alley, 10.00 feet in width, as shown on said map of Harper; thence northeasterly along said centerline of alley to an intersection with the northwesterly prolongation of the northeasterly line of Lot 25 of Tract No. 847 as shown on a map thereof recorded in Book 26, page 7 of Miscellaneous Maps, records of Orange County; thence southeasterly along the said northwesterly prolongation of the northeasterly line of Lot 25 and along the northeasterly line of Lots 25, 26, 27, 28 and 29 of said Tract No. 847 to the most easterly corner of said Lot 29; thence southwesterly along the southeasterly line of said Lot 29 to the most southerly corner thereof; thence southwesterly in a direct line to the most easterly corner of Lot 16 of said Tract No. 847; thence southwesterly along the southeasterly line of said Lot 16 and the southwesterly prolongation thereof to an intersection with the centerline of the alley, 15.00 feet in width, as shown on said map of Tract No. 847; thence northwesterly along the centerline of said alley to an intersection with the centerline of the alley, 10.00 feet in width, lying southeasterly of Lots 5 to 12 inclusive of Block “A” of said Harper; thence southwesterly along the centerline of alley and along the northwesterly line of Lot 17, Block “A” of said Harper to a point 111.00 feet northeasterly of the most westerly corner of said Lot 17; thence southeasterly along a line parallel to the southwesterly line of said Lot 17 to a point 5.00 feet northwesterly of the southeasterly line of said Lot 17; thence northeasterly along a line parallel to said southeasterly line of said Lot 17 to a point 165.00 feet southwesterly of the northeasterly line of said Lot 17; said northeasterly line of Lot 17 being the centerline of Magnolia Street; thence southeasterly along a line parallel to the said northeasterly line of Lot 17 and the northeasterly line of Lot 16, Block “A” of Harper 54.00 feet; thence southwesterly along a line parallel to the said southeasterly line of Lot 17 to a point in the southwesterly line of said Lot 16; thence in a direct line to the most easterly corner of Lot 7, Tract No. 337, as shown on a map thereof recorded in Book 14, page 44 of Miscellaneous Maps, records of Orange County; thence southwesterly along the southeasterly line of Lot 7, 150.00 feet; thence northwesterly along a line parallel to the northeasterly line of said Lot 7 to the most southerly corner of Lot 6 of said Tract No. 337; thence northeasterly along the southeasterly line of Lot 6 to the most easterly corner thereof; thence northwesterly along the northeasterly line of said Lot 6 and the northwesterly prolongation thereof to an intersection with the centerline of the alley, 15.00 feet in width, as shown on said map of Tract No. 337; thence southwesterly along the centerline of said alley to point of intersection with the southeasterly prolongation of the southwesterly line of Lot 5 of said Tract No. 337; thence northwesterly along the said southeasterly prolongation of the southwesterly line of Lot 5 and the southwesterly line of said Lot 5 and the northwesterly prolongation thereof to an intersection with the centerline of Newport Avenue as shown on said map of Tract No. 337; thence southwesterly in a direct line to the point of intersection of the centerline of Newport Avenue with the centerline of 18th Street as shown on a map of Tract No. 18. First addition to Harper, recorded in Book 9, page 20 of Miscellaneous Maps, records of Orange County, California; thence westerly along the said centerline of 18th Street to an intersection with the centerline of the alley, 20.00 feet in width, lying within Block “C” of said Tract No. 18; thence northeasterly along said centerline of alley to an intersection with the centerline of Center Street, formerly Balboa Street, as shown on a map of said Tract No. 18; thence easterly along the centerline of Center Street to the intersection with the westerly line of Lot 16, Block “A,” Tract 18, as said tract is laid out and shown on a map thereof recorded in Book 9, page 20 of Miscellaneous Maps, records of Orange County, California; thence southerly along said westerly line of Lot 16, to the intersection with the southeasterly line of Block “A,” Tract 18; thence northeasterly along said line to its intersection with the easterly prolongation of the centerline of Center Street; thence easterly along said extension to the intersection with the centerline of Newport Avenue as Newport Avenue is shown on said map of Harper; thence northeasterly along said centerline of Newport Avenue to the point of beginning. (Code 1960, § 2516)
§ 10-295 Designation of district.

The vehicle parking district set forth in section 10-294 shall be designated as “Vehicle Parking District No. 1 of the City of Costa Mesa.”

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(Code 1960, § 2517)
Chapter XVI
(RESEVERED)TRAINS
§ 10-318 Railway gates.

No person shall drive any vehicle through, around or under any crossing gate or barrier at a railroad crossing while such gate or barrier is closed or is being opened or closed. (Code 1960, § 3415.0; Ord. No. 66-35, 8-15-66)
§ 10-319 Trains not to block crossings.

No person shall cause or permit any railway train or railway car or similar vehicle on rails to stop or stand or to be operated in such a manner as to prevent the use of any street for the purpose of travel for a period of time longer than 10 minutes, except that this provision shall not apply to railway trains, cars, or similar vehicles on rails while blocking or obstructing a crossing because of an accident which requires the operator of the train, car or similar vehicle on rails to stop at or near the scene of the accident. (Code 1960, § 3415.1; Ord. No. 66-35, 8-15-66)
Chapter XVII

SPECIAL SPEED ZONES
§ 10-331 Increasing state speed limit in certain zones.

The transportation services engineer manager is hereby authorized to post signs for speed limits which are established either by resolution of the city council or by staff upon the basis of an engineering and traffic survey, when the speed permitted by state law upon streets within the city is less than is necessary for safe operation of vehicles thereon. It is hereby declared that the prima facie speed limit shall be as posted on those streets or parts of streets designated when signs are erected giving notice thereof. All current posted limits are to remain in place unless changes are determined by an engineering and traffic survey and by resolution of the city council.
(Code 1960, § 3416.0; Ord. No. 66-35, 8-15-66; Ord. No. 67-5, 3-20-67; Ord. No. 6710, 4-17-67; Ord. No. 67-28, 9-5-67; Ord. No. 69-19, 8-18-69; Ord. No. 70-38, 9-8-70; Ord. No. 70-39, 9-21-70; Ord. No. 71-1, 1- 18-71; Ord. No. 71-36, § 1, 12-6-71; Ord. No. 72-31, § 1, 8-21-72; Ord. No. 73-31, § 1, 8-20-73; Ord. No. 76-42, § 1, 9-7-76; Ord. No. 77-13, § 1, 4-4-77; Ord. No. 78-23, § 1, 5-1-78; Ord. No. 85-36, § 1, 1-6-86; Ord. No. 87-26, § 2, 12-7-87)
§ 10-332 Decrease of state law maximum speed.

The transportation services engineer manager is hereby authorized to post signs for speed limits which are established either by resolution of the city council or by staff upon the basis of an engineering and traffic survey, when the speed permitted by state law outside of business and residential districts, as applicable upon streets within the city, is greater than is reasonable or safe under the conditions found to exist upon such streets. It is hereby declared that the prima facie speed limit shall be as posted on those streets or parts of streets designated when signs are erected giving notice thereof. All current posted limits are to remain in place unless changes are determined by an engineering and traffic survey and by resolution of the city council.
(Code 1960, § 3416.1; Ord. No. 66-35, 8-15-66; Ord. No. 67-10, 4-17-67; Ord. No. 67-28, 9-5-67; Ord. No. 67-35, 11-20-67; Ord. No. 68-33, 8-19-68; Ord. No. 68-38, 10-21-68; Ord. No. 69-19, 8-18-69; Ord. No. 70- 8, 2-16-70; Ord. No. 70-15, 3-16-70; Ord. No. 70-24, 6-22-70; Ord. No. 70-37, 8-17-70; Ord. No. 72-1, § 2, 1112
1-17-72; Ord. No. 72-7, § 1, 2-22-72; Ord. No. 72-16, § 1, 6-5-72; Ord. No. 73-45, § 1, 1-7-74; Ord. No. 75- 28, § 1, 5-20-75; Ord. No. 75-59, § 1, 2-1-75; Ord. No. 76-26, §§ 1, 2, 6-7-76; Ord. No. 76-46, § 1, 10-4-76; Ord. No. 78-37, § 1, 9-5-78; Ord. No. 79-26, § 1, 12-3-79; Ord. No. 84-34, § 1, 8-20-84; Ord. No. 85-35, §§ 1, 2, 11-4-85; Ord. No. 85-34, § 1, 11-9-85; Ord. No. 87-26, § 2, 12-7-87) § 10-333 Regulation of speed by traffic signals.

The city transportation services engineer manager is authorized to regulate the timing of traffic signals so as to permit the movement of traffic in an orderly and safe manner at speeds slightly at variance from the speeds otherwise applicable within the district or at intersections, and shall erect appropriate signs giving notice thereof.
(Code 1960, § 3416.2; Ord. No. 66-35, 8-15-66)
Chapter XVIII

INTERSTATE TRUCKS
§ 10-345 Purpose.

The purpose of this chapter is to establish procedures for designation of terminals, and truck routes to terminals, for interstate trucks operating on a federally designated highway system. (Ord. No. 85-5, § 2, 3-18-85)
§ 10-346 Definitions.

The following words and phrases shall have the meanings set forth, and if any word or phrase used in this chapter is not defined in this section, it shall have the meaning set forth in the California Vehicle Code; provided that if any such word or phrase is not defined in the vehicle code, it shall have the meaning attributed to it in ordinary usage:

Caltrans means the State of California Department of Transportation or its successor agency.

Interstate truck means a truck tractor and semi-trailer or truck tractor, semi-trailer and trailer with unlimited length as regulated by the vehicle code.

Terminal means any facility at which freight is consolidated to be shipped or where full load consignments may be loaded and off-loaded or at which the vehicles are regularly maintained, stored or manufactured.

Transportation engineer Manager means the transportation services managerengineer of the City of Costa Mesa or his their authorized representative.
(Ord. No. 85-5, § 2, 3-18-85)
§ 10-347 Application.
(a) Any interested person requiring term inal access, using Costa Mesa highways, for interstate trucks from the federally designated highway system shall submit an application, on a form provided by the city, together with such information as may be required by the transportation engineermanager, and appropriate fees to the City of Costa Mesa.
(b) Upon receipt of the application, the transportation engineer manager will cause an investigation to be made to ascertain whether or not the proposed terminal facility meets the requirements for an interstate truck terminal. Upon his approval of that designation, he will then determine the capabilities of the route requested and of alternate routes, whether requested or not. Determination of route capability will include, without limitation, a review of adequate turning radius and lane widths of ramps, intersections and highways, and general traffic conditions such as sight distance, speed, and traffic volumes. No 1113
access from the California State highways system will be approved without the approval of Caltrans. (c) Should the requested route pass through the City of Costa Mesa to a terminal located in another jurisdiction, the route shall not be designated until the applicant also complies with that jurisdiction’s application process. Costs for trailblazer signs shall be as provided in section 10-348(b). (Ord. No. 85-5, § 2, 3-18-85)
§ 10-348 Fees and costs.
(a) The applicant shall pay a nonrefund able application fee, as established by the city council by resolution, sufficient to pay the cost of the review of the terminal designation and the review of the route and alternate route.
(b) Upon the approval of the terminal designation and r oute by the City of Costa Mesa and by Caltrans, the applicant shall deposit with the City of Costa Mesa sufficient funds as estimated by the transportation engineer manager to pay for the purchase and installation of terminal trailblazer signs. Trailblazer signs will be required at every decision point in the city along the route to the terminal. Upon completion of the installation of the signs, the actual cost shall be computed, and any difference between the actual and the estimated cost shall be billed or refunded to the applicant, as appropriate. No terminal or route may be used until all required signs are in place. Costs for trailblazer signs may be reapportioned in accordance with the procedures in section 10-349(d).
(Ord. No. 85-5, § 2, 3-18-85)
§ 10-349 Retrofitting.
(a) If all feasible routes to a requested terminal are found unsatisfactory by the transportation engineermanager, the applicant may request retrofitting the deficiencies. All costs of engineering, construction and inspection will be the responsibility of the applicant. Except when the retrofitting of the deficiencies is within the jurisdiction of Caltrans, the actual construction will be done by the city or by a contractor for the applicant acceptable to the city. (b) When the work is to be done by the city, the app licant shall deposit with the City of Costa Mesa funds equal to the estimated cost of retrofitting. Adjustments between the estimated and actual cost shall be made after completion of the work, and any difference between the actual and the estimated cost shall be billed or refunded to the applicant as appropriate.
(c) When the work is done by the applicant’s contract or, the applicant may file with the transportation engineermanager, on a form satisfactory to the transportation engineermanager, a statement detailing the actual costs of the retrofitting.
(d) If, at any time within five year s from the date of completion of the retrofitting, any other applicant should seek terminal access approval which would use the route upon which such retrofitting was accomplished, any such applicant’s fee may include that applicant’s proportionate share of the cost of retrofitting, as determined by the transportation engineermanager, which fee shall be disbursed by the City of Costa Mesa to the applicant who paid for the retrofitting as well as to any other applicant who contributed to the cost of retrofitting under this subsection. Nothing herein shall require the payment of a proportionate share of the fee if the applicant doing the work failed to file with the transportation engineer manager the report cost statement required by subsection (c) above. (Ord. No. 85-5, § 2, 3-18-85)
§ 10-350 Revocation of route.

The transportation engineer manager may revoke any approved terminal or route if the terminal or route 1114
becomes a hazard to vehicular traffic. A safety hazard exists when interstate trucks are unable to negotiate the route or when said vehicles cause unsafe conditions for other vehicular traffic or for pedestrians. (Ord. No. 85-5, § 2, 3-18-85)
§ 10-351 Appeal process.
(a) If the transportation engineer manager denies an application for terminal designation or route feasibility or revokes a previously approved terminal or route, the applicant/terminal owner, within 10 days following the date of mailing of the decision of the transportation engineermanager, may appeal said decision to the city council in writing. An appeal shall be filed with the city clerk. The appeal shall state specific facts showing an error or abuse of discretion by the transportation engineer manager or that the decision is not supported by the evidence in the record. Within five days of the filing of an appeal, the transportation engineer manager shall transmit to the city clerk the terminal application, the sketches of the revoked route and all other data filed therewith, the report of the transportation engineermanager, the findings of the transportation engineer manager and his their decision on the application. (b) The city clerk shall make copies of the data provided by the transportation engineer manager available to the applicant and to the appellant (if the applicant is not the appellant) for inspection, and may give notice to any other interested party who requested notice, of the time when the appeal will be considered by the city council.
(c) If Caltrans, and not the transportation engineermanager, denies or revokes terminal access from a state highway, no appeal may be made to the city council, but any appeal must be made to Caltrans as may be permitted by Caltrans.
(Ord. No. 85-5, § 2, 3-18-85)
Chapter XIX

SOLICITATION OF EMPLOYMENT, BUSINESS, OR CONTRIBUTIONS FROM

STREETS AND CERTAIN COMMERCIAL PARKING LOTS
§ 10-354 (Reserved)
(Ord. No. 13-03, § 1, adopted October 1, 2013, repealed § 10-354.) § 10-354.1 Prohibition of solicitation in commercial parking areas. (a) No person in a commercial parking area shall so licit employment, business or contributions of money where the owner has posted a sign on the premises complying with this section giving notice of the prohibition. This prohibition does not apply to walkways, plazas, or other areas adjacent to a parking area which are primarily intended for the congregation of persons and communication between persons of any kind, does not apply to premises which are intended or required by law to be open to the public for communicative purposes pursuant to Pruneyard Shopping Center v. Robins, 447 U.S. 74 (1980), and does not apply to only distribution of literature.
(b) The sign shall comply with each of the following requirements:
(1) Be posted in a conspicuous place making it easily viewable by persons entering or standing in the commercial parking area. Where necessary to be easily viewable due to the size or configuration of the area, more than one sign shall be posted.
(2) Have a size of not less than eighteen by 24 inches and not exceeding a total area of six square feet. (3) Contain a notice with lettering no t less than one inch in height in substantially the following form:
“It is prohibited and illegal to solicit employment, business or contributions of money anywhere in this 1115 parking area without the owner’s written authorization by order of the owner. CMMC 10-354.1” The notice may be written in English or in English and Spanish, at the owner’s discretion. (c) Where a sign (or signs) is poste d in a commercial parking area complying with this section, there is a presumption it was posted by the owner.
(d) An owner who has posted such a sign in a commercia l parking area shall send written notification of the prohibition to the chief of police containing a map showing the legal boundaries of the owner’s property and of the commercial parking area thereon and the name, address and telephone number of the owner or the owner’s property manager agent.
(Ord. of 02-7, § 1, 4-1-02; Ord. No. 05-7, § 3, 4-26-05; Ord. No. 05-8, § 2, 5-3-05) § 10-354.2 Definitions.

As used in this chapter:

Actively solicit shall mean solicitation accompanied by action intended to attract the attention of a person in a vehicle traveling in the street such as waving arms, making hand signals, shouting to someone in a traveling vehicle, jumping up and down, waving signs pointed so as to be readable by persons in traveling vehicles, quickly approaching nearer to vehicles which are not lawfully parked, and entering the roadway portion of a street. “Actively solicit” does not include peaceably standing on a sidewalk, or on a parkway on any street segment without a sidewalk, with a sign seeking employment, contributions or business; distribution of literature to pedestrians or occupants of legally parked vehicles; or verbally communicating desire or availability for employment, contributions or business to pedestrians or to persons in lawfully parked vehicles (2) Commercial parking area shall mean privately owned property open to the public and used primarily for the parking of vehicles of customers, guests, and/or employees of nearby business establishments.

Curb shall mean the lateral boundary of the roadway, whether or not such curb is marked by curbing construction; however, the word “curb” shall not include the line dividing the roadway of a street from parking strips in the center of a street, nor from tracks or rights-of-way of public utility companies.

Employment shall mean and include services, industry or labor performed by a person for wages, or other compensation or under any contract of hire, written, oral, express or implied.

Median shall mean a paved or planted area separating a street, or highway, into two or more lanes or directions of travel.

Owner shall mean the fee owner of a commercial parking area, the lessee of an entire commercial parking area, or the property manager agent of such fee owner or lessee.

Parkway shall mean the area of a public street that lies between the curb and the adjacent property line or physical boundary definition (such as a sidewalk), which is used for landscaping and/or passive recreational purposes.

Sidewalk shall mean that portion of the public right-of-way which is between the curbface and the parallel edge of the pavement furthest from the curb but still within the public right-of-way where the sidewalk is contiguous with the curb, or that portion of the public right-of-way which is a paved area between a parkway and adjacent private or public property, which is generally used by pedestrians and persons in non-motorized vehicles. Sidewalk does not include median.

Solicit shall mean and include any request, offer, enticement, or action which announces the availability for 1116
or of employment, the sale of goods, or other request for funds; or any request, offer, enticement or action which seeks to purchase or secure goods or employment, or to make a contribution of money. As defined herein, a solicitation shall be deemed complete when made whether or not an actual employment relationship is created, a transaction is completed, or an exchange of money takes place.

Street shall mean all of the area dedicated to public use for public street purposes and shall include, but not be limited to, roadways, parkways, medians, alleys, sidewalks, driveways, curbs, and public ways.

Traveling along a street shall mean a vehicle being operated on a street, excluding vehicles lawfully parked at the edge of a street or temporarily, lawfully stopped at a marked passenger loading zone. (Ord. No. 02-7, § 1, 4-1-02; Ord. No. 05-7, § 4, 4-26-05; Ord. No. 05-8, § 3, 5-3-05) Chapter XX

MOTOR VEHICLE AIR POLLUTION REDUCTION
§ 10-355 Purpose.

This chapter is intended to support the SCAQMD’s imposition of the motor vehicle registration fee and to establish a fund to assist the city in complying with the requirements set forth in section 44223 of the California Health and Safety Code in order to receive fee revenues for the purpose of implementing programs to reduce air pollution from motor vehicles.
(Ord. No. 91-17, § 2, 7-1-91)
§ 10-356 Definitions.

As used in this chapter the following words and terms shall have the meaning ascribed thereto:

City shall mean the City of Costa Mesa.

Fee administrator shall mean the finance director of the city or the designee of the director.

Mobile source air pollution reduction programs shall mean any program or project implemented by the city to reduce air pollution from motor vehicles which it determines will be consistent with the California Clean Air Act of 1988 or the plan proposed pursuant to Article 5 (commencing with section 40460) of Chapter 5.5 of Part 3 of the California Health and Safety Code and section 65089 of the California Government Code. (Ord. No. 91-17, § 2, 7-1-91)
§ 10-357 Administration of motor vehicle registration fee. (a) Receipt of fee: The additional motor vehicle regi stration fees disbursed by the SCAQMD and remitted to the city, pursuant to this chapter, shall be accepted by the fee administrator. (b) Establishment of air quality improvement trust fund: The fee administrator shall establish a separate interest bearing trust fund account in a financial institution authorized to receive deposits of city funds. (c) Transfer of funds: Upon receipt of vehicle registration fees, the fee administrator shall deposit such funds into the separate account established pursuant to subsection (b) above. All interest earned by the trust fund account shall be credited only to that account. (d) Expenditure of air quality tr ust fund revenues: All revenues received from the SCAQMD and deposited in the trust fund account shall be exclusively expended on mobile source emission reduction programs as defined in subsection (b) of section 10-356. Such revenues and any interest earned on the revenues shall be expended within one year of the completion of the programs. 1117
(e) Audits: All programs and projects funded by moto r vehicle registration fee revenues received from the SCAQMD pursuant to section 44223 of the Health and Safety Code are subject to an audit to be conducted by an independent auditor selected by the SCAQMD as provided in Sections 44244 and 44244.1(a) of the Health and Safety Code.
(Ord. No. 91-17, § 2, 7-1-91)
Chapter XXI

COMMERCIAL VENDING VEHICLES
§ 10-358 Purpose and findings.

The city council of the City of Costa Mesa finds that commercial vending vehicles pose traffic hazards, public health hazards and impact the safety of residents within the City of Costa Mesa. The intent of this chapter is to provide clear and concise regulations to ensure public safety and prevent traffic and health hazards. This chapter is also intended to preserve the peace and welfare of the residents of the City of Costa Mesa.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-359 Definitions.

For the purposes of this chapter:

Chief of police shall mean the police chief or his or her designee.

City attorney shall mean the city attorney or his or her designee.

City planning commission shall mean the planning commission.

City treasurer shall mean the city treasurer or his or her designee.

Commercial vending vehicle shall mean any vehicle, as that term is defined in the California Vehicle Code, which is equipped or primarily used for retail sales of fruits, vegetables or produce or non-food sundries, including but not limited to goods, wares or merchandise, and/or prepared, prepackaged, unprepared, unpackaged food of any kind or any goods, wares or merchandise on any public street, alley or highway or private street or alley within the City of Costa Mesa. The inventory of these vehicles is not necessarily limited to edible items and may include non-food sundries. A human powered device is not a commercial vending vehicle.

Director of development services shall mean the director of development services or his or her designee.

Goods or merchandise includes items and products of every kind and description, including all foods, produce and beverage items.

Human powered device shall mean any device moved by human power, including but not necessarily limited to any pushcart, wagon, bicycle as defined in § 10-4(a), tricycle, grocery cart, or other wheeled container or conveyance.

Mobile vendor shall mean any person as defined in this chapter who:
(1) Owns, controls, manages and/or leases a commercial vending vehicle; and/or (2) Contracts with a person(s) to drive, operate, prepare foods and/or vend from a commercial vending vehicle.
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Operator as used in this chapter, shall mean any and all person(s) who drive, operate, prepare foods and/or vend from a commercial vending vehicle.

Person shall mean any natural person, firm, partnership, association, corporation, or other entity of any kind or nature.

Public property shall mean any real property, or interest therein, owned, leased, operated, or otherwise controlled by the City of Costa Mesa other than a street, alley, parkway or sidewalk.

Restocking shall mean any transfer of goods or merchandise to a commercial vending vehicle from any other person or vehicle and includes, but is not limited to loading and delivery.

Risk manager shall mean the city’s risk manager or his or her designee.

Vehicle shall mean a device as defined in the California Vehicle Code and shall not include any human powered device.

Vend or vending as used in this chapter means soliciting, displaying, or offering, moving or standing of a commercial vending vehicle for the purpose of searching for, obtaining or soliciting retail sales of produce, fruits, vegetables, prepared or unprepared food, repackaged or unpackaged food or non-food sundries of any kind or any goods, wares, or merchandise for sale or barter or exchange from a vehicle on a public or private street, alley, highway or public place within the city. (Ord. No. 97-12, § 3, 5-5-97)
§ 10-360 Permit required.

No person shall own, control, manage, lease or contract with other persons for the operation of a commercial vending vehicle in the city without the appropriate valid permit issued pursuant to the provisions of this chapter in addition to any other license or permit required by the city. (Ord. No. 97-12, § 3, 5-5-97)
§ 10-361 Operator’s permit required.
(a) Any person desiring to obtain an operator’s perm it to engage in the vending of goods or merchandise from a commercial vending vehicle, or the driving of such vehicle, pursuant to this chapter shall make application to the city treasurer or his or her designee. Such application shall be accompanied by a nonrefundable application fee in such amount as established by resolution of the city council. Any such permit shall be required to be renewed annually and a separate nonrefundable application fee paid yearly for such renewal application. Each applicant for an operator’s permit shall furnish the following information and documentation as part of or in conjunction with such application:
(1) The present or proposed address from which the business is to be conducted, including the location of restocking and overnight parking of the commercial vending vehicle; (2) The full and true name under which the business will be conducted and description of items to be offered for sale;
(3) The full and true name and any other names used by the applicant; (4) The present residen ce address and telephone number of the applicant; (5) California driver’s license number of the applicant; 1119
(6) Acceptable written proof that the applicant is at least 18 years of age. The number of vehicles to be owned, operated, or controlled by the applicant and the makes, body styles, years, serial and engine numbers, license plate numbers, and names and addresses of the registered and/or legal owners of each vehicle;
(7) The applicant’s height, wei ght, color of eyes and hair; (8) A description of the logo, colo r scheme, insignia, and any other distinguishing characteristics of the applicant’s vehicles.
(9) The permit history of the applican t for the three-year period immediately preceding the date of the filing of the application, including whether such applicant, in previously operating in this city, has ever had any similar license or permit revoked or suspended or has been convicted of a violation of this chapter and, if so, the circumstances of such suspension, revocation or conviction; (10) Written proof in a form satisfactory to the city attorney or risk manager that the applicant is insured under the policy of insurance required for such business pursuant to section 10-371 of this chapter; (11) Such other identification and/or information as the city treasurer or chief of police or his or her designee may require in order to discover the truth of the matters required to be set forth in the application. (b) When any charge occurs regardi ng the written information required in this chapter, the applicant shall give written notification of such change to the city treasurer within 15 days after such change. (Ord. No. 97-12, § 3, 5-5-97)
§ 10-362 Display of operator’s permit and business license required.

Each operator shall possess and at all times display in conspicuous view upon the left corner of the front windshield of each such commercial vending vehicle a City of Costa Mesa business license, issued pursuant to Title 9 of this Code, and an operator’s permit issued pursuant to this chapter. (Ord. No. 97-12, § 3, 5-5-97)
§ 10-363 Issuance of permit.

The city treasurer shall grant the operator’s permit within 10 days after receiving the completed application only if he or she finds that all of the following requirements have been met:
(a) The required fees have been paid;
(b) The application conforms in all respec ts to the provisions of this chapter; (c) The applicant has not made a material misr epresentation of fact in the application; (d) The applicant has not had a similar permit denied or revoked by the city within one year prior to the date of such application; and
(e) The applicant does not have a ny outstanding debt owing to the city and has obtained a valid city business license.
(f) Where applicable, the applican t has obtained a valid Orange County Health Department permit as required for food handlers pursuant to Title 8 of this Code and California Health and Safety Code. (Ord. No. 97-12, § 3, 5-5-97)
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§ 10-364 Denial of permit.
(a) If the city treasurer finds that not all of the requirements set forth in section 10-363 as applicable have been met, he or she shall deny the application for the operator’s permit. In the event the application for the permit is denied by the city treasurer, written notice of such denial shall be given to the applicant specifying the ground(s) of such denial. Notice of denial of the application for the permit shall be deemed to have been served on the date it is personally served on the applicant or when deposited in the United States mail with postage prepaid and addressed to the applicant at his or her residence address as set forth in the application or permit.
(b) Any applicant whose applicati on for a operator’s permit has been denied by the city treasurer may appeal such denial to the planning commission by filing a written notice of appeal with the city treasurer within seven days following the date of service of the decision and payment of the appeal fee prescribed by resolution of the city council. The date of filing of said notice of appeal shall be the date said notice and appeal fee are received by the city treasurer.
(c) No person or entity whose permit is finally denied shall be eligible to apply for a new permit for a period of one year following such denial.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-365 Revocation of permit.
(a) Any operator’s permit may be revoked by the city treasurer for good cause shown including but not necessarily limited to any of the following reasons:
(1) Falsification of any informati on supplied by the permittee upon which issuance of the permit was based. (2) Failure of the permittee or any employees or su bcontractors of the permittee to comply with the regulations set forth in this chapter.
(3) Conviction of a violation, or plea of guilty or nolo contendere, by the permittee, or any employee, subcontractor or independent contractor of the permittee, of any state law or municipal ordinance while in the course of conducting vending operations from a vehicle pursuant to the permit. (4) Conviction of a violation, or a plea of guilty or nolo contendere, by the permittee of any applicable provision or requirement of this chapter.
(b) No revocation shall become effective until expira tion of the appeal period. Notification of the permit holder shall be made either by personal delivery or by certified or registered mail, return receipt requested, addressed to the permit holder at such permit holder’s residence address as set forth on the application for a permit. Service shall be deemed made on the permit holder on the date personally delivered or on the date of mailing. A permit holder may appeal such revocation to the planning commission by filing a written notice of appeal with the city treasurer within seven days following the date of service of such decision and payment of the appeal fee as prescribed by resolution of the city council. The date of filing of said notice of appeal shall be the date said notice and appeal fee are received by the city treasurer. If a timely appeal is filed, the revocation shall be stayed pending the decision of the planning commission. Otherwise, the suspension or revocation shall become effective immediately upon expiration of said appeal period; and
(c) No person or entity whose permit is revoked shall be eligible to apply for a new permit for a period of one year following such revocation.
(Ord. No. 97-12, § 3, 5-5-97)
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§ 10-366 Appeals.

Upon receipt of a timely appeal by the planning commission, or its secretary, the commission shall hear such appeal within 30 days following the date of such appeal and shall give the appellant not fewer than five days’ advance notice of the date of such hearing. The decision of the planning commission shall be based upon the same criteria as set forth in this chapter which are applicable to the issuance or revocation of such permit.

The appellant shall be notified of the decision of the planning commission by mailed, written notice. The decision of the planning commission shall be final and subject to California Code of Civil Procedure section 1094.6. No revocation of a permit pursuant to this chapter shall be deemed effective during the pendency of a timely filed appeal until the date of mailing of the planning commission decision; provided, however, that no permit holder shall operate during any period of time in which the insurance coverage required by this chapter is not in full force and effect.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-367 Enforcement.

The director of development services, director of finance and the chief of police have the authority to enforce the provisions of this chapter. In addition to other remedies, vehicles found in violation of this chapter may be cited and removed in accordance with section 10-69.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-368 Temporary special events permit.

A person wishing to conduct a vending business at any special event shall apply to the city for a temporary vending permit. Application for such a permit must be made at least 30 days prior to the beginning of the event. Applicants must meet the same application requirements as other operators of commercial vending vehicles. The permit is valid only for the duration of the special event. A person granted a temporary permit is subject to the same operating regulations as other operators, except where otherwise specified. (Ord. No. 97-12, § 3, 5-5-97)
§ 10-369 Trash receptacles and removal.
(a) All commercial vending vehicles shall be equipped with refuse receptacles large enough to contain all refuse generated by the operation of such vehicle consistent with California Health and Safety Code; and
(b) The operator of the commercial vending vehicle shall pick up all refuse generated by such operation within a fifty-foot radius of the vehicle before such vehicle is moved. All refuse shall be disposed of at an approved solid waste facility.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-370 Hours of operation.
(a) No vehicle or stand used for vending shall remain on public property during non-operating hours.

Overnight parking of commercial vending vehicles on a public street or alley is prohibited as set forth in section 10-186; and
(b) No vending shall be permitted by any operator or conducted by any vendor on a residential street except between the hours of 9:00 a.m. and 5:00 p.m.
(Ord. No. 97-12, § 3, 5-5-97; Ord. No. 01-25, § 1, 10-01-01) § 10-371 Insurance provisions.

All operations conducting business pursuant to this chapter shall have liability insurance covering the vehicle 1122
in accordance with the laws of the State of California. (Ord. No. 97-12, § 3, 5-5-97)
§ 10-372 Required stickers, signs and lettering.
(a) There shall be displayed in a conspicuous place on both the right and left side of the commercial vending vehicle permanently affixed lettering showing the name of the company or operator of the commercial vending vehicle and the business address and telephone number thereof. The lettering for the name of the company or the operator of the commercial vending vehicle shall not be less than four inches in height, shall be in contrast to the color of the background upon which they are placed, and shall have strokes at least three-eighths (3/8) inches wide. The lettering for the operator’s business address and telephone number (as listed on the permit) shall not be less than one inch high; (b) No other lettering, number ing, price lists, signs or insignia shall be displayed on the right or left side of the commercial vending vehicle so as to interfere with the visibility of the lettering required in subsection (a); and
(c) Each commercial vending vehicle shall also possess and display a valid Orange County Health inspection sticker affixed to the lower portion of the windshield if the operator is causing the sale of or offering for sale any produce or other food item for which a food handling permit or other health permit is required.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-373 Sound-making devices.

No bell, horn, music or other amplified or non-amplified sound-making device may be used to advertise, draw attention to, or announce the presence of any commercial vending vehicle. This section shall not prohibit use of vehicle horns required by the California Vehicle Code, provided that use of such horns shall be limited to the purposes specified in said code.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-374 Prohibited conduct.
(a) No person shall vend from a commercial vending ve hicle which is stopped, parked or standing on any public street, alley or highway in any of the following situations:

1. Within 500 feet of any active public school property, park, playground or recreational facility;

2. Within 300 feet of any other comm ercial vending vehicle which is engaged in the operation of vending;

3. Within 100 feet of an inte rsection, including public alleys;

4. When the posted speed limit on the public street, alley or highway is greater than 35 miles per hour;

5. When the commercial vending vehicle is parked in violation of any other provision of this Code or the California Vehicle Code;

6. When the commercial vending vehicle is not duly registered and licensed by the State of California or exceeds an unladen weight of 6,000 pounds;

7. When any part of the commercia l vending vehicle is open to prospective customers other than on the side of the vehicle next to the right side of the street or highway;

8. When the commercial vendi ng vehicle is not legally stopped, parked or standing on the right side of the 1123
street or highway;

9. When the prospective customer is st anding or sitting in another vehicle.

10. When the prospective customer is lo cated in that portion of the street, alley or highway which is open to vehicular traffic; and

11. When the commercial vending vehicl e is on or within any parkway, alley, sidewalk, driveway, a no “parking” area as defined by this Code or other public property that is not a street or highway. (b) Restocking of a commercial vending vehicle is prohibited on a public street or alley as set forth in this title;
(c) No commercial vending vehicle sh all attach or receive any utilities from private or public property; (d) Operators of commercial vending vehicles shall not conduct the business of vending in any location for a period in excess of 10 minutes and said vehicle must be moved a distance of not less than 100 feet between each successive location at which vending occurs; (e) No additional lighting other than that required by the California Vehicle Code and Health and Safety Code may be installed or operated on a commercial vending vehicle; and (f) All commercial vending vehicl es are prohibited from operating on private property except, with the permission of the property owner or his or her agent, commercial vending vehicles shall be permitted to provide meals/snacks for employees at private property locations (such as construction sites) for a period of 30 minutes or less (such as construction sites). § 10-375 Applicability of regulations to existing businesses.

The provisions of this chapter shall be applicable to all persons and businesses described herein whether the herein described activities were established before or after the effective date of the ordinance enacting this chapter into law. All such persons and businesses shall have 30 days from said effective date to file a completed application for an operator’s permit with the city. (Ord. No. 97-12, § 3, 5-5-97)
§ 10-376 Conducting as a nuisance.

Any commercial vending vehicle operated contrary to the provisions of this chapter shall be hereby declared to be unlawful and a public nuisance and the city attorney may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings, for the abatement, removal or enjoinment thereof, in the manner provided in this Code, and may take such other steps and may apply to such court or courts as may have jurisdiction to grant such relief as will abate or remove such establishment and restrain and enjoin any person from operating a commercial vending vehicle contrary to the provisions of this chapter.
(Ord. No. 97-12, § 3, 5-5-97)
§ 10-377 Penalty for violation.

Every violation of the provisions of this chapter shall be deemed to be a misdemeanor punishable pursuant to section 1-33 of this Code. Each and every day of any violation of any provisions of this chapter shall constitute a separate and distinct offense.
(Ord. No. 97-12, § 3, 5-5-97)
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§ 10-378 Exemptions.

The requirements of this chapter shall not apply to:
(a) Any person delivering any goods or merchandise by vehicle where such goods or merchandise have been ordered in advance for such delivery from any business located at a permanent location regardless of the point of sale thereof; and
(b) Any person engaged in the ve nding of goods or merchandise on public property where such persons have been authorized by the city to engage in such activity by a permit, lease, real property license, agreement, or other entitlements issued by the city for such purpose. (Ord. No. 97-12, § 3, 5-5-97)

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-229 Meeting Date: 6/18/2024
TITLE:

FEE RESOLUTION TO ESTABLISH THE AFFORDABLE HOUSING IN-LIEU FEE SCHEDULE DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES

DEPARTMENT/PLANNING DIVISION
PRESENTED BY: AMBER GREGG, CONTRACT PLANNER
CONTACT INFORMATION: AMBER GREGG, CONTRACT PLANNER, (714) 754-5617 RECOMMENDATION:

Staff recommends the City Council:

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

2. Adopt a fee resolution establishing the affordable housing in-lieu fee.