SUPPLEMENTAL MEMO
CITY OF COSTA MESA
DEPARTMENT OF PUBLIC WORKS
SUPPLEMENTAL MEMORANDUM
TO: THE HONORABLE CITY COUNCIL
FROM: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
DATE: JUNE 17, 2024
SUBJECT: AGENDA ITEM NO. CC-6: AGREEMENT FOR FUEL PROCUREMENT AND DELIVERY SERVICES WITH MERRIMAC PETROLEUM, INC.
Council Member Harper had the following questions (in italics) on CC- 6, Agreement for Fuel Procurement and Delivery Service with Merrimac Petroleum, Inc. Staff responses are provided under each question.
A few questions on the Agreement:
• No OPIS rack is defined so it seems unclear what Costa Mesa’s pricing would be.
Maybe this pricing is noted in Contract #PW22-1064 072022?
The OPIS rate is published daily by United Communication Group. Date, time, and OPIS rate is documented on the packing slip at the time of delivery. In Agreement PW22-1064, the average price for Renewable Diesel No. 2 was $3.3427 per gallon.
• As of January 1st, 2024, the new Dyed Diesel spec is RD99 (renewable diesel) so this appears to be the wrong fuel.
Costa Mesa no longer uses or orders Dyed Diesel. Also known as “Red Dye” Diesel, this fuel is used in off-road equipment and is exempt from road tax. Costa Mesa does not utilize enough off-road equipment for this to be feasible. Costa Mesa currently only purchases clear renewable diesel under this agreement.
• The only pricing I see is for bulk diesel to Ventura @ $0.079 for deliveries over 5k gallons. What is the pricing for deliveries of less than 5K?
When scheduling fuel deliveries, staff ensures each delivery is over the 5k gallon amount to get the best price.
• I do not see any set aside for W.O.B., and that is typically the arena Merrimac plays in.
After discussing this question with the owner, they are a Woman Owned Business (W.O.B.), small business, and at this time due to revenues and net worth, there are no set asides for W.O.B. The owner also mentioned it has been difficult for any set asides related to the W.O.B status.
2 • I am guessing the full pricing structure would be contained in Contract # PW22-1064?
At this time, Costa Mesa only purchases renewable diesel No. 2 under this agreement.
• For the clear diesel, why is the city not buying renewable diesel to help meet sustainability goals?
In the quote for clear diesel, it is referred to as renewable in item #7 “Renewable Diesel No. 2”.
If you have any further questions, please contact me or Patrick Bauer, Deputy Public Works Director.
C Lori Ann Farrell Harrison, City Manager
Patrick Bauer, Deputy Public Works Director
Brenda Green, City Clerk
PRESENTATIONS
ORDINANCES TO AMEND TITLE 4 AND TITLE 10 OF THE
MUNICIPAL CODE (BICYCLE RELATED ORDINANCES)
Public Works Department &
Police Department
City Council
June 18, 2024
CMMC Amendment
• 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) of the Costa Mesa Municipal Code (CMMC).
• Amendment needed to be in compliance with California
Vehicle Code (CVC) and current practices and procedures.
Background
• AB 1909, Bicycle Omnibus Bill, signed into law on September 16, 2022.
• Designed to bring the CVC into congruence with current bicycle riding practices within the state, as well as to increase the safety of individuals bicycling.
• 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.
Background
• On February 21, 2023, City Council adopted Ord No. 2023-02 to repeal Chapter 1 (Bicycles and Motorized Bicycle Licensing) to Title 4 (Bicycles) of the CMMC.
• Additional amendments to Title 4 and 10 are needed to bring the CMMC into compliance with the CVC and current bicycle and transportation practices within the community.
Analysis
• City Attorney’s Office, Police Department, and Public Works identified statutes recommended for revisions or
removal to bring the CMMC into compliance with current
CVC, technology and culture.
• Additional provisions are recommended to enhance
bicycle safety on roadways and sidewalks based on the
recent proliferation of e-bike usage.
ATC Review and
Recommendation
• Staff presented updates on proposed amendments to the Active Transportation Committee (ATC) on March 6th,
April 17th, and May 1st.
• Modifications were made to address comments from ATC
members and community members as appropriate.
• ATC voted unanimously to recommend the proposed
amendments to City Council on May 1.
Proposed updates:
§ 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 revisions to CVC 21209, 21208, 21202, 21200, and 21204. § 4-26(g): is an added ordinance prohibiting riding a bicycle in an unsafe manner or speed on the sidewalk or roadway.
§ 4-26(h): is an added ordinance requiring bicyclists to yield the right of way to pedestrians on the sidewalk.
§ 4-26(j): is an added ordinance 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 ROW. § 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 “crosswalk daylighting” and be congruent with AB413 and the subsequent revision to CVC 22500(n)(1)(A). *Additional minor edits were made to ordinances within Title 4 & 10 to update language and relevancy
Recommendation
Staff recommends 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.
Questions?
June 18, 2024
City Council
960 West 16th Street
Urban Plan Screening for 38 Live/Work Units
2 Mesa West Bluffs Urban Plan
3 Project Site Description
West 19th St West 19th St
Anaheim Ave
Anaheim Ave
Plumer St Plumer St
• 2.3 Acre Site
• Light Industrial Land
Use
• General Industrial
Zoning
• Adjacent to existing
Lighthouse
Live/Work
Development
4 Surrounding Development
5 Surrounding Development
6 Proposed Project
Required Proposed
Tenant
Parking
71 spaces 76 spaces
Guest
Parking
57 spaces 25 spaces*
*53 spaces shown on plan, however,
tandem parking is expressly prohibited
in Mesa West Bluffs Urban Plan.
7 Floor Plans
Plan 1B
Plan 2A
Plan 3B
8 Design
9 Requested Deviations
Minimum
Requirements
Proposed
Guest Parking 57 parking spaces 25 parking spaces
Distance Between
Buildings
10 FT 6 FT
Minimum Size
Workspaces
250 SF 120 SF to 180 SF
Pursuant to the Urban Plan, in exchange for a deviation approval, the project must provide quality environments and substantial amenities which may include on or off-site
amenities.
10 Proposed Project Design
• Project meets objectives of the Urban
Plan.
• Project location is appropriate for the
proposed land use and will result in
more ownership housing production in
the community.
• Proposed development is neighborhood
compatible.
11 General Plan Land Use Element Policy 1.3
Policy:
“Strongly encourage the development of residential uses and owner-occupied housing (single-family detached
residences, condominiums, townhouses) where feasible
to improve the balance between rental and ownership
housing opportunities“.
12 Next Steps
• City Council to discuss project and provide feedback concerning:
- overall design
- potential deviations
- other comments/concerns
• Applicant will work with staff to submit for Master Plan review • Master Plan to be reviewed and approved by Planning
Commission
June 18, 2024
City Council
960 West 16th Street
Urban Plan Screening for 38 Live/Work Units
14 15
Potential Issues
• Lack of amenities
• Internal Circulation
includes large
amounts of paving
meant for vehicular
travel
• Fire requirements to
be met for final
circulation layout
960 W 16th St – Costa Mesa
Vancouver
Seattle
Newport Beach
Austin
City of Costa Mesa– City Council
June 18th 2024
Intracorp has over 7,900 residential units in design or under construction across its four regional markets comprised of residential for-sale and rental communities.
DEVELOPMENT
PIPELINE
34 projects under
construction or
in
pre-development
4 active markets
across the US and
Canada
$6B
value of projects
in the pipeline
(CAD)
7,900+
residential homes
under construction
or in
pre-development
OUR ACTIVE PROJECTS
LUX | IRVINE, CAMARINER SHORES | NEWPORT BEACH, CA
MIREN| ARCADIA, CA THE PLACE| COSTA MESA, CA
Vancouver
Seattle
Los Angeles
Austin
Site Plan
Building Elevations
Plan 1
Plan 2
Plan 3
Landscape Conceptual Plan
Aerial View (North)
Aerial View (South)
SOUTHERN
CALIFORNIA
895 Dove Street, Ste. 400
Newport Beach, CA
Phone: (949) 724 -5923
INTRACORPHOMES.COM
RICK PUFFER | VP DEVELOPMENT
email: rpuffer @intracorphomes.com
Vancouver
Seattle
Newp ort Beach
Austin
Building the
Extraordinary
APPENDIX
960 W 16th St – Aerial View (Lighthouse at left side)
South Views – Lighthouse
The Place – 17 West
The Place – 17 West
June 18, 2024
City Council
Affordable Housing In-Lieu Fee
2 Affordable Housing In-Lieu Fee
• The proposed Affordable Housing Ordinance requires a percentage of affordable housing, or an in-lieu fee to be provided with rental housing projects that exceed 50 units (Gov Code, Sec 65850, 65850.01, & 65583(a)).
• The fee is calculated to support future affordable housing production. • The City completed an Affordability Gap analysis to ensure the fee is commensurate with producing the affordable units required by the Ordinance. • Section 65583(a) requires the City to analyze potential and actual constraints being placed on the development of housing to ensure the requirements do not create a constraint to housing development.
• The recommended fee is based on Costa Mesa specific data only. • Based on this extensive analysis, the City’s consultant, Keyser Marston Associates, has recommended an In-Lieu Fee that is meant to meet the City’s goal.
3 Background
• January 16, 2024 – City Council considered Affordable Housing Ordinance and directed staff to return with an In-Lieu Fee. • February 27, 2024 – In-Lieu Fee Study Session, comments included:
• Ensure Costa Mesa is competitive with nearby cities.
• Fee does not result in an impediment to the production of housing. • April 2, 2024 – City Council considered the In-Lieu fee and requested it be brought back at a later date.
• Affordable Housing Ordinance applies to developments with 50 units or more.
• Only applies to rental housing development, not ownership. 4 Proposed In-Lieu Fee
This fee is based on a housing development affordability gap and is divided into two categories, including housing projects that are greater than 60 units per acre, and housing projects that are less than 60 units per acre.
5 Comparison of Nearby Cities In-Lieu Fees
CITY REQUIREMENT
Santa Ana • 5-19 Units: $6-$12 per SF
• 20+ Units: $15 per SF
• Only applies to changes in land use and zoning designations • Set Aside: 5-15% Rental, & 5% Ownership
• Affordability Requirement: 15% low, or 10% very low, or 5% extremely low, or 5% very low + 5% low + 5% moderate
Long Beach • Rental: $38 per SF
• Ownership: $29.10 per SF
• Affordability Requirement: 11% very low (rental), 10% Moderate (ownership) Huntington Beach • 3-30 Units: $3.58-$35.80 per SF
• 30-100 Units: $35.80 per SF
• 100+ Units: Must build on-site
Mission Viejo • Threshold: 10+ Units
• Rental: $41.90 per SF
• Ownership: $58.20 per SF
• For rental projects, the in-lieu fee can only be paid for projects between 10 and 20 units. For projects exceeding 20 units, production is required to be on-site.
Ownership, any project with 10 or more units can pay the in-lieu fee. 6 Comparison of Nearby Cities In-Lieu Fees
CITY REQUIREMENT
Encinitas • 1-6 Units: sliding scale
• 7+ Units: $23.79 per SF
• Affordability Requirement: 10% Very Low or 15% Low
Oceanside Fee: $20 per SF
Affordability Requirement: 10% Low (rental), 10% Moderate (ownership) San Diego • $25 per SF
• Affordability Requirement: 10% Very Low or Low (Rental), 10%-15% Moderate (Ownership)
Irvine • Formula: based on the cost of land and affordability gap for each project • Affordability Requirement: 5% Very Low + 5% Low + 5% Moderate Santa Monica • Rental: $35.70 per SF
• Ownership: $41.70 per SF
• Affordability Requirement: 5% to 30% Very Low, Low and Moderate 7 Comparison of Nearby Cities
City General Fund Budget
(FY 24-25) Population Property Tax Property Tax
(% of GF)
Property Tax
(per Capita)
Median Home
Price ZHVI
Costa Mesa $189,894,159 111,918 $60,473,546 32% $540.34 $959,800 $1,375,865 Santa Ana $400,217,738 310,227 $93,894,320 23% $302.66 $624,000 $818,774 Newport Beach $311,251,957 85,239 $149,296,403 48% $1,751.50 $2,000,001 $3,343,231 Huntington
Beach $299,995,281 198,711 $108,152,472 36% $544.27 $976,800 $1,396,820 Mission Viejo $74,127,778 93,653 $43,967,772 59% $469.48 $883,600 $1,245,826 Encinitas $100,052,992 62,007 $67,050,000 67% $1,081.33 $1,354,600 $2,038,064 Irvine $263,133,648 307,670 $97,919,816 37% $318.26 $1,025,700 $1,789,381 Long Beach $720,087,012 466,742 $161,710,432 22% $346.47 $709,700 $914,989 Oceanside $218,696,890 174,068 $89,742,690 41% $515.56 $644,600 $909,041 Santa Monica $458,615,156 93,076 $83,895,666 18% $901.37 $1,654,800 $2,491,267 San Diego $2,147,600,000 1,386,932 $817,400,000 38% $589.36 $783,300 $1,164,577 8 Next Steps
• Continue Rezoning efforts.
• Develop policies and procedures manual.
• Develop Inclusionary Housing agreement
templates.
9 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.
June 18, 2024
City Council
Affordable Housing In-Lieu Fee
11 In-Lieu Fee Analysis
12 Staff Previous Proposed Fee Schedule
13 Developer Feedback on In-Lieu Fee Amounts
• Higher in-lieu fee amounts would encourage onsite
production, which is preferred and is best practice.
• Generally, preferred to pay the in-lieu fee at a flat rate versus a sliding scale based on project size.
14 Affordable Housing Ordinance Applicability
• City has 97 housing opportunity
sites identified in our Housing
Element.
• All sites are located in Measure K
Overlay.
• 47 of the 97 sites are anticipated to
have 50+ units.
15 Mission Viejo Requirements – Approved 6/11/24
• The threshold project size is 10 units.
• For rental projects, the in-lieu fee can only be paid for projects with between 10 and 20 units.
• For ownership projects any project with 10 or more units can pay the in-lieu fee.
16 Potential Alternative
• Incremental increase of In-Lieu Fee.
• Initially set a fee at a lower amount and increase
it over time.
Example: Evaluate a fee of $12 in Year 1, with
increases over a 3-year period ( or longer) to an
eventual amount of $19.50.
• Thereafter, consider an annual adjustment
based on an industry index such as changes in
new home value.
APPOINTMENT TO THE PARKS
AND COMMUNITY SERVICES
COMMISSION
City Council Meeting
June 18, 2024
2 BACKGROUND
• On Thursday, May 9, 2024, Cassius Rutherford informed the City that he was stepping down as Parks and Community Services Commissioner. His last Commission meeting was May 9, 2024.
• The City posted the vacancy notice on May 14, 2024, and began the recruitment. The recruitment period ran from May 14, 2024 to June 3, 2024. 3 • Make one (1) member appointment to fill the vacancy with a remaining term expiration of January 2025. Appointment by Council Member Gameros.
1. Nancy Whitlock – District 1
2. Yessenia Delgado – District 1
3. Syed Zia Hussain – District 2
4. Erik William Roberts – District 2
5. Brandice Lea Leger – District 3
6. Julia C. Hoigaard – District 4
7. Kenneth E. Smith – District 5
8. Marla Ogelvie – District 5
Parks and Community Services Commission