CITY OF COSTA MESA
REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
Agenda
City Council Chambers
77 Fair Drive
6:00 PMTuesday, February 3, 2026
*Note: All agency memberships are reflected in the title "Council Member" The City Council meetings are presented in a hybrid format, both in-person at City Hall and as a courtesy virtually via Zoom Webinar. If the Zoom feature is having technical difficulties or experiencing any other critical issues, and unless required by the Brown Act, the meeting will continue in person.
TRANSLATION SERVICES AVAILABLE / SERVICIOS DE TRADUCCIÓN DISPONIBLE Please contact the City Clerk at (714) 754-5225 to request language interpreting services for City meetings. Notification at least 48 hours prior to the meeting will enable the City to make arrangements.
Favor de comunicarse con la Secretaria Municipal al (714) 754-5225 para solicitar servicios de interpretación de idioma para las juntas de la Ciudad. Se pide notificación por lo mínimo 48 horas de anticipación, esto permite que la Ciudad haga los arreglos necesarios.
Members of the public can view the City Council meetings live on COSTA MESA TV (SPECTRUM CHANNEL 3 AND AT&T U-VERSE CHANNEL 99) or
http://costamesa.granicus.com/player/camera/2?publish_id=10&redirect=true and online at youtube.com/costamesatv.
Closed Captioning is available via the Zoom option in English and Spanish.
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Agenda February 3, 2026
Members of the public are welcome to speak during the meeting when the Mayor opens the floor for public comment. There is no need to register in advance or complete a comment card. When it's time to comment, line up at one of the two podiums in the room and wait for your turn. Each speaker will have up to 3 minutes (or as directed) to address the City Council.
To maintain a respectful and orderly atmosphere during the meeting, attendees shall refrain from using horns or amplified speakers. Signs and props may be brought into the Chamber, provided they do not exceed 11 inches by 18 inches in size and do not hinder the visibility of other attendees. The possession of poles, sticks, or stakes is strictly prohibited.
All attendees must remain seated while in the chamber until instructed by the Presiding Officer to approach and line up for public comment. To ensure safety and maintain order during the proceedings, standing or congregating in the aisles or foyer is strictly prohibited.
Further information regarding the City's regulations on addressing the City Council and expected conduct during meetings are available at the following links.
Title 2: Administration
§ 2-61: Conduct while addressing the council.
https://ecode360.com/42609578
Title 2: Administration
§ 2-64: Disorderliness by members of the audience.
https://ecode360.com/42609598
As a courtesy, the public may participate via the Zoom option.
Zoom Webinar:
Please click the link below to join the webinar:
https://us06web.zoom.us/j/89043958874?pwd=IRT09p1n7qobGkEIm4Z9jOy0KYuXE1.1 Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 890 4395 8874/ Password: 909770
• If Zoom is not already installed on your computer, click “Download & Run Zoom” on the launch page and press “Run” when prompted by your browser. If Zoom has previously been installed on your computer, please allow a few moments for the application to launch automatically.
• Select “Join Audio via Computer.”
• The virtual conference room will open. If you receive a message reading, “Please wait for the host to start this meeting,” simply remain in the room until the meeting begins.
• During the Public Comment Period, use the “raise hand” feature located in the participants’ window and wait for city staff to announce your name and unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.
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Agenda February 3, 2026
Participate via telephone:
Call: 1 669 900 6833 Enter Webinar ID: 890 4395 8874/ Password: 909770 During the Public Comment Period, press *9 to add yourself to the queue and wait for city staff to announce your name/phone number and press *6 to unmute your line when it is your turn to speak. Comments are limited to 3 minutes, or as otherwise directed.
Note, if you have installed a zoom update, please restart your computer before participating in the meeting.
Additionally, members of the public who wish to make a written comment on a specific agenda item, may submit a written comment via email to the City Clerk at [email protected].
Any written communications, photos, or other materials for copying and distribution to the City Council that are 10 pages or less, can be e-mailed to [email protected], submitted to the City Clerk’s Office on a flash drive, or mailed to the City Clerk’s Office. Kindly submit materials to the City Clerk AS EARLY AS POSSIBLE, BUT NO LATER THAN 12:00 p.m. on the day of the meeting.
Comments received by 12:00 p.m. on the day of the meeting will be provided to the City Council, made available to the public, and will be part of the meeting record.
Please know that it is important for the City to allow public participation at this meeting. If you are unable to participate in the meeting via the processes set forth above, please contact the City Clerk at (714) 754-5225 or [email protected] and staff will attempt to accommodate you. While the City does not expect there to be any changes to the above process for participating in this meeting, if there is a change, the City will post the information as soon as possible to the City’s website.
Note that records submitted by the public will not be redacted in any way and will be posted online as submitted, including any personal contact information. All pictures, PowerPoints, and videos submitted for display at a public meeting must be previously reviewed by staff to verify appropriateness for general audiences. This includes items submitted for the overhead screen during the meeting. Items submitted for the overhead screen should be 1 page and provided to the City Clerk prior to the start of the meeting. No links to YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to staff prior to each meeting in order to minimize complications and to play the video without delay. The video must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for public comments, for both videos and pictures. Please e-mail to the City Clerk at [email protected] NO LATER THAN 12:00 Noon on the date of the meeting. If you do not receive confirmation from the city prior to the meeting, please call the City Clerks office at 714-754-5225.
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Agenda February 3, 2026
Note regarding agenda-related documents provided to a majority of the City Council after distribution of the City Council agenda packet (GC §54957.5): Any related documents provided to a majority of the City Council after distribution of the City Council Agenda Packets will be made available for public inspection. Such documents will be posted on the city’s website and will be available at the City Clerk's office, 77 Fair Drive, Costa Mesa, CA 92626.
All cell phones and other electronic devices are to be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to conduct a phone conversation.
Free Wi-Fi is available in the Council Chambers during the meetings. The network username available is: CM_Council. The password is: cmcouncil1953.
As a LEED Gold Certified City, Costa Mesa is fully committed to environmental sustainability.
A minimum number of hard copies of the agenda will be available in the Council Chambers.
For your convenience, a binder of the entire agenda packet will be at the table in the foyer of the Council Chambers for viewing. Agendas and reports can be viewed on the City website at https://costamesa.legistar.com/Calendar.aspx. Las agendas y los informes se pueden ver en español en el sitio web de la Ciudad en
https://www.costamesaca.gov/trending/current-agendas/spanish-city-council-agendas.
In compliance with the Americans with Disabilities Act, Assistive Listening headphones are available and can be checked out from the City Clerk. If you need special assistance to participate in this meeting, please contact the City Clerk at (714) 754-5225. Notification at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102.35.104 ADA Title II].
En conformidad con la Ley de Estadounidenses con Discapacidades (ADA), aparatos de asistencia están disponibles y podrán ser prestados notificando a la Secretaria Municipal. Si necesita asistencia especial para participar en esta junta, comuníquese con la oficina de la Secretaria Municipal al (714) 754-5225. Se pide dar notificación a la Ciudad por lo mínimo 48 horas de anticipación para garantizar accesibilidad razonable a la junta. [28 CFR
35.102.35.104 ADA Title II].
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Agenda February 3, 2026
REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY FEBRUARY 3, 2026 – 6:00 P.M.
JOHN STEPHENS
Mayor
MANUEL CHAVEZ ANDREA MARR Mayor Pro Tem - District 4 Council Member - District 3
ARLIS REYNOLDS LOREN GAMEROS Council Member - District 5 Council Member - District 2
JEFF PETTIS MIKE BULEY Council Member - District 6 Council Member - District 1
KIMBERLY HALL BARLOW CECILIA GALLARDO-DALY City Attorney City Manager
CALL TO ORDER
NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE
MOMENT OF SOLEMN EXPRESSION
[Per Council Policy 000-12, these presentations are made by community volunteers stating their own views. The City Council disclaims any intent to endorse or sponsor the views of any speaker.]
ROLL CALL
CITY ATTORNEY CLOSED SESSION REPORT
PRESENTATIONS: NONE.
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Comments on Presentations and Consent Calendar items may also be heard at this time. Comments are limited to 3 minutes, or as otherwise directed.
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COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Each council member is limited to 3 minutes. Additional comments will be heard at the end of the meeting.
1. Council Member Marr
2. Council Member Reynolds
3. Council Member Pettis
4. Council Member Buley
5. Council Member Gameros
6. Mayor Pro Tem Chavez
7. Mayor Stephens
REPORT – CITY MANAGER
REPORT – CITY ATTORNEY
CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine and will be acted upon in one motion. There will be no separate discussion of these items unless members of the City Council, staff, or the public request specific items to be discussed and/or removed from the Consent Calendar for discussion.
1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL
ORDINANCES AND RESOLUTIONS
26-118
RECOMMENDATION:
City Council and Housing Authority approve the reading by title only and waive further reading of Ordinances and Resolutions.
2. READING FOLDER 26-119
RECOMMENDATION:
City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Sophia Bernal, Nicole Hernandez, Gene Micco, Dylan Stone, Fiainu Marrhinoe.
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3. ADOPTION OF WARRANT RESOLUTION 25-624
RECOMMENDATION:
City Council approve Warrant Resolution No. 2747.
1. Summary Check Registration 12-18-2025
2. Summary Check Registration 12-22-2025
3. Summary Check Registration 1-8-2026
4. Summary Check Registration 1-15-2026
Attachments:
4. MINUTES 26-123
RECOMMENDATION:
City Council approve the minutes of the regular meetings of January 20, 2026.
1. 01-20-2026 Draft MinutesAttachments:
5. DESIGNATION OF VOTING DELEGATE FOR THE SOUTHERN
CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) 2026
REGIONAL CONFERENCE AND GENERAL ASSEMBLY
25-617
RECOMMENDATION:
It is recommended that Council Member Mike Buley serve as the delegate for the upcoming 2026 Annual Southern California Association of Governments (SCAG) Regional Conference and General Assembly.
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6. DESIGNATION OF CITY NEGOTIATORS FOR THE COSTA MESA
POLICE MANAGEMENT ASSOCIATION (CMPMA), THE COSTA
MESA POLICE ASSOCIATION (CMPA) AND THE COSTA MESA CITY
EMPLOYEES’ ASSOCIATION (CMCEA) LABOR NEGOTIATIONS
PROCESSES AND AUTHORIZATION TO PROCEED WITH THE
FINANCIAL ANALYSIS OF THE CURRENT MEMORANDA OF
UNDERSTANDING (MOU) PER THE TRANSPARENCY IN LABOR
NEGOTIATIONS COUNCIL POLICY
26-117
RECOMMENDATION:
1. Designate City Manager Cecilia Gallardo-Daly as the City ’s Principal Negotiator, Assistant City Manager Alma Reyes, Human Resources Manager Kasama Lee, and Finance Director Carol Molina as the City ’s representatives in negotiations with the CMPMA, CMPA and CMCEA.
2. Designate Liebert Cassidy Whitmore Partner Peter Brown to serve as legal counsel during negotiations with the CMPMA, CMPA and CMCEA.
3. Authorize staff to have the independent fiscal analysis of the current CMPMA, CMPA and CMCEA Memoranda of Understanding (MOU)
completed per the requirements of the Transparency in Labor Negotiations Council Policy.
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7. CHANGE ORDER FOR THE EMERGENCY GENERATOR UNITS FOR
CITY HALL AND THE COMMUNICATIONS BUILDING
26-107
RECOMMENDATION:
Staff recommends the City Council:
1. Authorize the use of Sourcewell’s Cooperative Agreement #092222-CAT with Caterpillar Inc. for a change order of the original purchase of two ( 2) diesel emergency generators, two ( 2) automatic transfer switches, and two ( 2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems. The City Hall transfer switch is being removed from the quote and a manual transfer switch for the Communications Building is being added.
2. Authorize a change order to the original Purchase Order (PO) for an additional $5,818.50 pulled from the project budget for the purchase of one (1) manual transfer switch for the Communications Building. The PO, now for $395,361.69, originally $389,543.19, through Quinn Power Systems, 3500 Shepherd Street, City of Industry, CA 90601, shall encompass the purchase of two ( 2) diesel emergency generators, one ( 1) automatic transfer switch, one (1) manual transfer switch, two ( 2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems.
1. QuoteAttachments:
8. PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING
SERVICES FOR THE CITY ’S PAVEMENT MANAGEMENT PLAN
UPDATE
26-106
RECOMMENDATION:
Staff recommends the City Council:
1. Approve a Professional Services Agreement (PSA) to Bucknam Infrastructure Group, Inc ., 3548 Seagate Way, Suite 230, Oceanside, California, for a term of five ( 5) years with two ( 2) one-year extensions for a not to exceed amount of $148,354 to provide annual updates to the City ’s Pavement Management Plan (PMP).
2. Authorize the City Manager and the City Clerk to execute the PSA and any future amendments to the agreement.
1. RFP No. 26-07
2. PSA
Attachments:
AT THIS TIME COUNCIL WILL ADDRESS ANY ITEMS PULLED FROM THE CONSENT
CALENDAR
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------------------------------END OF CONSENT CALENDAR------------------------------- PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)
1. CONTINUATION REQUEST OF AN APPEAL OF THE PLANNING
COMMISSION’S DECISION TO UPHOLD THE ECONOMIC AND
DEVELOPMENT SERVICES DIRECTOR ’S DECISION TO DENY A
REASONABLE ACCOMMODATION REQUEST TO DEVIATE FROM
CERTAIN REQUIREMENTS OF THE ZONING CODE TO OPERATE A
SOBER LIVING HOME. OPERATED BY THE OHIO HOUSE AT 115
EAST WILSON STREET, UNITS A THROUGH E
26-124
RECOMMENDATION:
Staff recommends the City Council open the public hearing and continue the item to the April 21, 2026, meeting, pursuant to staff’s request.
OLD BUSINESS:
1. ADOPTION OF AN ORDINANCE AMENDING TITLE 13 OF THE
COSTA MESA MUNICIPAL CODE TO ALLOW FOR MINISTERIAL
APPROVAL OF TWO-UNIT SMALL LOT ORDINANCE PROJECTS
(PCTY-25-0007)
25-627
RECOMMENDATION:
Staff recommends the City Council adopt Ordinance No. 2026-01 approving revisions to Title 13 of the Costa Mesa Municipal Code (Zoning Code) to allow for ministerial approval of two-unit Small Lot Ordinance (SLO) projects.
Agenda Report
1. Draft Ordinance
Attachments:
2. ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, REQUIRING STAFFING AT SELF-SERVICE
CHECKOUT STATIONS
26-116
RECOMMENDATION:
Staff recommends the City Council Adopt Ordinance No. 2026-XX Adding Article 7 of Chapter II of Title 9 to the Costa Mesa Municipal Code relating to Grocery and Drug Store Staffing Standards for Self-Service Checkout Stations.
1. Draft Ordinance on Staffing of Self Checkout Stations - Track Changes
2. Draft Ordinance on Staffing of Self Checkout Stations - Clean Attachments:
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NEW BUSINESS:
1. CLIMATE ACTION AND ADAPTATION PLAN (CAAP) STATUS AND
OUTREACH UPDATE
26-102
RECOMMENDATION:
Staff recommends the City Council receive the presentation, provide feedback, and file this report.
Agenda Report
1. CAAP Policy Objectives Comparison
Attachments:
2. OPERATIONS AGREEMENT FOR LIONS PARK CAFE 26-108
RECOMMENDATION:
Staff recommends the City Council:
1. Award an operation agreement to Neat Coffee for the Management and Operation of the Lions Park Cafe.
2. Authorize the City Manager or her designee to negotiate the terms and conditions for the financial share between the City and Neat Coffee.
3. Authorize the City Manager and the City Clerk to execute the operating agreement and future amendments to the agreement (Attachment 1) within City Council authorized limits.
4. Appropriate net revenues as received by the City that comply with the agreement of 50% net revenue to the OC Public Library for a net neutral impact.
1. Cafe Agreement
2. County of Orange Cafe MOU
Attachments:
3. APPROVAL OF A CODE OF ETHICS AND CONDUCT 26-122
RECOMMENDATION:
Approve a Code of Ethics and Conduct.
1. Draft Code of ConductAttachments:
ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND
SUGGESTIONS
ADJOURNMENT
11 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-118 Meeting Date: 2/3/2026
TITLE:
PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND
RESOLUTIONS
RECOMMENDATION:
City Council and Housing Authority approve the reading by title only and waive further reading of Ordinances and Resolutions.
12 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-119 Meeting Date: 2/3/2026
TITLE:
READING FOLDER
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:
City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Sophia Bernal, Nicole Hernandez, Gene Micco, Dylan Stone, Fiainu Marrhinoe.
13 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-624 Meeting Date: 2/3/2026
TITLE:
ADOPTION OF WARRANT RESOLUTION
DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: CAROL MOLINA, FINANCE DIRECTOR
CONTACT INFORMATION: CAROL MOLINA, FINANCE DIRECTOR AT (714) 754-5243 RECOMMENDATION:
City Council approve Warrant Resolution No. 2747.
BACKGROUND:
In accordance with Section 37202 of the California Government Code, the Director of Finance or their designated representative hereby certify to the accuracy of the following demands and to the availability of funds for payment thereof.
FISCAL REVIEW:
Funding Payroll Register No. 25-26 On Cycle for $4,643,351.40, 25-26 “A”off Cycle for 804.25, 26- 01 On Cycle for 4,191,943.82, and 26-02 On Cycle for $3,975,802.18, and City operating expenses for $6,213,380.73.
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-123 Meeting Date: 2/3/2026
TITLE:
MINUTES
DEPARTMENT: City Manager’s Office/City Clerk’s Division RECOMMENDATION:
City Council approve the minutes of the regular meetings of January 20, 2026.
84 Minutes – Regular Meeting January 20, 2026 Page 1 of 12
REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY JANUARY 20, 2026 - MINUTES
CALL TO ORDER – The Closed Session meeting was called to order by Mayor Stephens at 4:08 p.m.
ROLL CALL
Present: Council Member Gameros, Council Member Pettis, Council Member Reynolds (Via Zoom Webinar), Mayor Pro Tem Chavez, and Mayor Stephens.
Absent: Council Member Buley and Council Member Marr.
PUBLIC COMMENTS – NONE.
CLOSED SESSION ITEMS:
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATION OF LITIGATION - THREE CASES
Pursuant to California Government Code Section 54956.9 (d)(2), Potential Litigation.
2. CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION – ONE CASE
Pursuant to California Government Code Section 54956.9 (d)(4), Potential Litigation.
3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to California Government Code Section 54956.9 (d)(1) Name of Case: Schaefer v. City of Costa Mesa
Orange County Superior Court Case No. 30-2022-01286737-CU-PO-CJC City Council recessed at 4:10 p.m. for Closed Session.
Closed Session adjourned at 5:35 p.m.
CALL TO ORDER - The Regular City Council and Housing Authority meeting was called to order by Mayor Stephens at 6:00 p.m.
NATIONAL ANTHEM AND PLEDGE OF ALLEGIANCE – A video was played of the National Anthem and the Mayor led the Pledge of Allegiance.
MOMENT OF SOLEMN EXPRESSION – Led by Calvary Chapel Dave Manne, Pastor Emeritus.
85 Minutes – Regular Meeting January 20, 2026 Page 2 of 12
ROLL CALL
Present: Council Member Gameros, Council Member Pettis, Council Member Marr (Arrived at 6:16 p.m.), Council Member Reynolds (Via Zoom Webinar, excused at 9:55 p.m.), Mayor Pro Tem Chavez, and Mayor Stephens.
Absent: Council Member Buley.
CITY ATTORNEY CLOSED SESSION REPORT – No reportable action.
PRESENTATIONS:
City Council recognized Anne McEligot for her 40-Year volunteer service with AYSO.
PUBLIC COMMENTS – MATTERS NOT LISTED ON THE AGENDA
Jan Hansen, Costa Mesa, expressed concerns on an unpermitted deck built by the next-door neighbor.
Reina Cuthill, spoke on Love Costa Mesa, and the Community Impact Program (CIT) transitional work program.
Terry Moore, Director of the Community Impact Program, spoke on the program.
Ian Stevenson, Costa Mesa, spoke on Love Costa Mesa, and thanked the City Council for their support of the programs and for their leadership.
Brooke Grey, Costa Mesa, thanked the City Council for the availability of community resources, and requested an accounting of how the donated monies were spent for the food services.
Eric Jimenez, Executive Director with Bright Youth, requested a new community center in the Shalimar Park community.
Speaker, requested an accounting of the monies provided in the Legal Defense Fund, and requested to update the website with additional information.
Natalie Foley, spoke on the availability of immigrant resources and updating the information on the City website.
Speaker, spoke on the No Vigilantes Act, and requested FOIA requests for immigration enforcement data.
Speaker, spoke on the work of Bright Youth, and in support of a new community center in the Shalimar Park area.
Speaker, spoke on the Peace and Freedom party and against ICE. 86 Minutes – Regular Meeting January 20, 2026 Page 3 of 12 Margo Farris, Costa Mesa, spoke on problems at the Costa Mesa Tennis Center.
Chris Nelson, Costa Mesa, spoke on providing resources to the immigrant community.
Roberto Herrera, Resilience Orange County, spoke on issues associated with enforcement and spoke on providing resources to the immigrant community.
Cynthia McDonald, Costa Mesa, spoke on resident participation, transparency, and an ethics policy.
Priscilla Baltezar, Costa Mesa, thanked the City Council for immigrant resources.
COUNCIL MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS Council Member Gameros spoke on the Police Department acting in honor and respect and spoke against ICE.
Council Member Marr spoke on speaking at the Black Chamber of Commerce event and on Martin Luther King Jr., and for 2026 focusing on housing, rights for the immigrant community, and funding for the infrastructure.
Council Member Reynolds expressed gratitude for staff and the community for their support to the community, and requested an update from staff on how those in need can access food resources.
Council Member Pettis spoke on participating in the process of local government, spoke on the budget and focusing on infrastructure, spoke on attending the groundbreaking for Brentwood Park, attending the Safe Routes to School event, recognized Sergio Escobar for his support, and spoke on Love Costa Mesa.
Mayor Pro Tem Chavez provided comments from Juano Trejo for public comment thanking staff for their work in the community, spoke on the need for the community to feel safe, spoke against ICE, spoke in support of a Shalimar community center, stated staff is working on the tennis center issues, spoke on the groundbreaking at Brentwood Park, and spoke in support of parks, and thanked Chief Stefano for his service to the city and community.
Mayor Stephens spoke on appointing Cecilia Gallardo-Daly as City Manager, spoke on the Snoopy House event, spoke on attending the Synth Beer ribbon cutting, attending the Early Bird Breakfast Burritos ribbon cutting, spoke on attending the Costa Mesa United Golf Tournament, spoke on attending the upcoming mayors conference with City Manager Gallardo-Daly, spoke on attending the Police Department promotion ceremony, spoke on a decrease in crime and the Police Department being fully funded, spoke in memory of Joe Weber and former Police Chief Roger Neth and praised Chief Stefano and thanked him for his service to the community.
REPORT – CITY MANAGER – Ms. Gallardo Daly reported on the Brentwood Park ribbon cutting, spoke on Lets Talk Costa Mesa on social media, a Community bike skills workshop on January 24th, and the City is currently recruiting for the firefighters position. 87 Minutes – Regular Meeting January 20, 2026 Page 4 of 12 REPORT – CITY ATTORNEY – Ms. Hall Barlow spoke on the defense agreements for immigration services and the $200,000 allocated, the two providers are actively providing services, information will be posted on the website, and spoke on the tennis center issues and that staff is working on a solution.
CONSENT CALENDAR
MOVED/SECOND: Mayor Stephens/Mayor Pro Tem Chavez
MOTION: Approve the Consent Calendar.
The motion carried by the following roll call vote:
Ayes: Council Member Gameros, Council Member Marr, Council Member Pettis, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: Council Member Buley.
Abstain: Council Member Gameros recused himself on item 3 the Warrant Resolution due to his wife working for Priceless Pet Recue.
Motion carried: 6-0
1. PROCEDURAL WAIVER: WAIVE THE FULL READING OF ALL ORDINANCES AND
RESOLUTIONS
ACTION:
City Council and Housing Authority approved the reading by title only and waived further reading of Ordinances and Resolutions.
2. READING FOLDER
ACTION:
City Council received and filed Claims received by the City Clerk and authorized staff to reject any and all Claims: Thomas Devlin, Magdy Elias, Lori Ann Farrell Harrison, Silvestra Rojas Lara, Rose Michelson, Elizabeth Nelson, Jeffrey Standel, Melody Waterman.
3. ADOPTION OF WARRANT RESOLUTION
ACTION:
City Council approved Warrant Resolution No. 2746.
4. MINUTES
ACTION:
City Council approved the minutes of the regular meetings of November 4, 2025, November 18, 2025, and December 2, 2025.
88 Minutes – Regular Meeting January 20, 2026 Page 5 of 12
5. ACCEPTANCE OF THE COSTA MESA POLICE DEPARTMENT FLOOR REPLACEMENT PROJECT, CITY PROJECT NO. 24-05
ACTION:
1. City Council accepted the work performed by Interior Resources, Inc., dba Commercial Interior Resources, Inc. (CIR) for the Costa Mesa Police Department Floor Replacement Project, City Project No. 24-05, and authorize the City Clerk to file the Notice of Completion.
2. Authorized the City Manager to release the retention monies thirty-five (35) days after the Notice of Completion filing date; release the Labor and Material Bond seven (7) months after the filing date; and release the Faithful Performance Bond one (1) year after the filing date.
--------------------------------------END OF CONSENT CALENDAR---------------------------------------- PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)
1. INTRODUCTION AND FIRST READING BY TITLE ONLY OF AN ORDINANCE AMENDING TITLE 13 OF THE COSTA MESA MUNICIPAL CODE TO ALLOW FOR
MINISTERIAL APPROVAL OF TWO-UNIT SMALL LOT ORDINANCE PROJECTS (PCTY-25-0007) AND ADOPTION OF ASSOCIATED FEES
Presentation by Mr. Yeager, Senior Planner.
Public Comments:
Speaker, spoke in opposition of the item.
MOVED/SECOND: Mayor Pro Tem Chavez/Council Member Marr
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Gameros, Council Member Marr, Council Member Reynolds, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: Council Member Pettis.
Absent: Council Member Buley.
Abstain: None.
Motion carried: 5-1-1
ACTION:
1. City Council found that the project is Exempt from the California Environmental Quality Act (CEQA), Section 15061(b)(3) (“General Rule”) based on the findings and conclusions in the staff report.
89 Minutes – Regular Meeting January 20, 2026 Page 6 of 12
2. City Council adopted the revisions to Title 13 of the Costa Mesa Municipal Code (Zoning Code) to allow for ministerial approval of two-unit Small Lot Ordinance (SLO) projects. Introduce for first reading, by title only, Ordinance No. 2026-01 approving Code Amendment PCTY-25-0007, amending the Zoning Code sections pertaining to two-unit SLO projects; and
3. City Council adopted Resolution No. 2026-01 establishing a fee for two-unit ministerial SLO projects and reaffirming the same fee for Urban Lot Split projects.
City Council recessed into a break at 7:44 p.m.
City Council reconvened at 8:01 p.m.
2. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
REQUIRING STAFFING AT SELF-SERVICE CHECKOUT STATIONS
Presentation by Mr. Barkman, Government Affairs Manager and Mr. Inloes, Economic Development Administrator.
Public Comments:
Derek Smith, Political Director for UFCW Local 324, spoke in support of the ordinance.
David Haithcock, President and CEO of the Costa Mesa Chamber of Commerce, spoke in opposition of the ordinance as written.
Speaker, works at Vons, spoke in support of the ordinance.
David Luney, District Director for Sprouts in Orange County, spoke in opposition of the ordinance
Brian Baxley, CVS, Ralph, and Albertsons union representative, spoke in support of the ordinance.
Bill Brewer, Sprouts Farmers Market, spoke in opposition of the ordinance.
Speaker, spoke in support of the ordinance.
Lily, Store Manager at the Sprouts in Costa Mesa, spoke in opposition to the ordinance.
Victor Romero spoke in support of the ordinance.
Speaker, spoke in opposition of the ordinance.
Tom Moreno, Albertsons, spoke in support of the ordinance. 90 Minutes – Regular Meeting January 20, 2026 Page 7 of 12 Speaker, Ralphs, spoke in opposition of the ordinance.
Matt Walters, Costa Mesa, spoke in support of the ordinance.
Speaker, spoke in opposition of the ordinance.
Speaker, spoke in support of the ordinance.
Speaker, Asset Protection for Albertsons stores, spoke in opposition to the ordinance.
Carlos Camacho, Chief of Staff for the Orange County Labor Federation, spoke in support of the ordinance.
Dan Graves, Vons Manager, spoke in opposition of the ordinance.
Speaker, spoke in support of the ordinance.
John, Store Director at Vons on Harbor Blvd, spoke in opposition of the ordinance.
Matt Bell, President of UFCW Local 324, spoke in support of the ordinance.
TJ Burkle, Government Relations for Ralphs, spoke in opposition of the ordinance.
Courtney Carranza, Director of Public and Government Affairs for Albertsons, Vons, and Pavilions, spoke in opposition of the ordinance.
Tim James, California Grocers Association, spoke in opposition of the ordinance.
Sue Lester, Costa Mesa, spoke in opposition of the ordinance.
Speaker, spoke in opposition of the ordinance.
Ryan Allain, Director of Government Affairs with the California Retailers Association, spoke in opposition of the ordinance,
Cynthia McDonald, Costa Mesa, spoke on self-checkouts and a preference to shop at farmers markets.
MOVED/SECOND: Council Member Gameros/Council Member Marr MOTION: Adopt Long Beach’s version of the ordinance with the following changes:
Change the cure to 30 days.
Bring back for Council review in one year.
The ordinance applies to all stores, no exceptions.
91 Minutes – Regular Meeting January 20, 2026 Page 8 of 12 Council Member Marr requested the following amendments:
Include the 85,000 square foot language.
Notice to store management in addition to corporate.
Council Member Gameros agreed to the changes and amended his original motion to change the cure to 7 days.
MOVED/SECOND: Council Member Gameros/Council Member Marr MOTION: Adopt Long Beach’s version of the ordinance with the following changes:
Bring back for Council review in one year.
The ordinance applies to all stores, no exceptions.
Include the 85,000 square foot language.
Notice to store management in addition to corporate.
The motion carried by the following roll call vote:
Ayes: Council Member Gameros, Council Member Marr, and Mayor Pro Tem Chavez.
Nays: Council Member Pettis and Mayor Stephens.
Absent: Council Member Buley and Council Member Reynolds.
Abstain: None.
Motion carried: 3-2-2
ACTION:
1. City Council received public comment and considered the draft ordinance.
2. Introduced and gave first reading, waiving further reading, to Ordinance No. 2026-02 Adding Article 7 of Chapter II of Title 9 to the Costa Mesa Municipal Code relating to Grocery and Drug Store Staffing Standards for Self-Service Checkout Stations.
OLD BUSINESS: NONE.
NEW BUSINESS:
1. AWARD OF THE SHALIMAR PARK IMPROVEMENT PROJECT, CITY PROJECT NO. 25-06, AND FINDING OF CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) CATEGORICAL EXEMPTION
Presentation by Mr. Yang, City Engineer.
Public Comments: None.
MOVED/SECOND: Mayor Pro Tem Chavez/Council Member Marr
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Gameros, Council Member Marr, Council Member Pettis, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: Council Member Buley and Council Member Reynolds.
Abstain: None.
Motion carried: 5-0
92 Minutes – Regular Meeting January 20, 2026 Page 9 of 12 ACTION:
1. City Council made a finding of California Environmental Quality Act (CEQA) categorical exemption pursuant to CEQA Guidelines section 15301.
2. Adopted plans, specifications, and working details for the Shalimar Park Improvement Project, City Project No. 25-06.
3. Rejected the apparent low bid submitted by ACC & Engineering, LLC (ACC), 1130 North Kraemer Boulevard # I, Anaheim, California 92806 as non-responsive.
4. Rejected the bid submitted by Earthscapes Landscape, Inc., 603 South Milliken Avenue, Unit J, Ontario, California 91761 as non-responsive.
5. Awarded a Public Works Agreement (PWA) for construction to the second lowest bidder, Micon Construction, Inc., 1616 Sierra Madre Circle, Placentia, California 92870 in the amount of $1,296,650 and authorized a ten percent (10%) contingency in the amount of $129,665 for unforeseen costs related to this project.
6. Authorized the City Manager and the City Clerk to execute the PWA with Micon Construction, Inc., and future amendments to the agreement within Council authorized limits.
3. APPROPRIATION OF OPIOID SETTLEMENT FUNDS
Presentation by Mr. Robbins, Neighborhood Improvement Manager.
Public Comments: None.
MOVED/SECOND: Mayor Stephens/Mayor Pro Tem Chavez
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Gameros, Council Member Marr, Council Member Pettis, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: Council Member Buley and Council Member Reynolds.
Abstain: None.
Motion carried: 5-0
ACTION:
City Council authorized the appropriation of past and future Opioid Settlement Funds to subsidize eligible expenses including legal fees and opioid remediation services for people experiencing homelessness.
93 Minutes – Regular Meeting January 20, 2026 Page 10 of 12
4. URBAN PLAN MASTER PLAN SCREENING REQUEST (PSCR-25-0001) FOR A PROPOSED 34 UNIT LIVE/WORK AND RESIDENTIAL LOFT DEVELOPMENT ON A
1.4 ACRE SITE WITHIN THE MESA WEST BLUFFS URBAN PLAN LOCATED AT 1626 PLACENTIA AVENUE
Presentation by Mr. Yeager, Senior Planner.
Public Comments: None.
ACTION:
City Council discussed the screening application and provided feedback.
5. COMPENSATION, CLASSIFICATION AND STAFFING UPDATES AND ADOPTION
OF THE MEMORANDUM OF UNDERSTANDING (MOU) AND SALARY
RESOLUTIONS BETWEEN THE CITY OF COSTA MESA (CITY) AND THE COSTA
MESA CITY EMPLOYEES ASSOCIATION (CMCEA), COSTA MESA DIVISION
MANAGERS ASSOCIATION (CMDMA), CONFIDENTIAL MANAGEMENT UNIT,
CONFIDENTIAL UNIT, EXECUTIVE EMPLOYEES, PART TIME EMPLOYEES AND
POLICE RECRUITS
Presentation by Ms. Lee, Human Resources Manager.
Public Comments: None.
MOVED/SECOND: Council Member Marr/Mayor Pro Tem Chavez
MOTION: Approve staff recommendation.
The motion carried by the following roll call vote:
Ayes: Council Member Gameros, Council Member Marr, Council Member Pettis, Mayor Pro Tem Chavez, and Mayor Stephens.
Nays: None.
Absent: Council Member Buley and Council Member Reynolds.
Abstain: None.
Motion carried: 5-0
ACTION:
1. City Council approved and adopted the Memorandum of Understanding between the City of Costa Mesa and CMCEA.
2. Approved and adopted Resolutions No. 2026-02 establishing the Senior Community Services Specialist, Lead Community Services Specialist, Senior Property and Evidence Specialist, Senior Civilian Investigator and Fairview Park Senior Maintenance Technician classifications and revising pay ranges for Community Outreach Supervisor.
94 Minutes – Regular Meeting January 20, 2026 Page 11 of 12
3. Approved and adopted Resolution No. 2026-03 revising pay ranges for Neighborhood Improvement Manager, Recreation Manager, Public Affairs Manager, Assistant Development Services Director and renaming the Community Improvement Manager, Planning and Sustainable Development Manager and Telecommunications Manager classifications and updating benefits information for the CMDMA.
4. Approved and adopted Resolution No. 2026-04 updating benefits information for the Confidential Management Unit.
5. Approved and adopted Resolution No. 2026-05 revising benefits information for the Confidential Unit.
6. Approved and adopted Resolution No. 2026-06 revising pay ranges for City Manager, Police Chief, Fire Chief, Deputy Police Chief and Assistant Fire Chief and benefits information for Executive Employees.
7. Approved and adopted Resolution No. 2026-07 revising pay ranges for Video Production Aide and Reserve Public Safety Dispatcher and updating benefits information for Part Time employees.
8. Approved and adopted Resolution No. 2026-08 revising pay ranges for Police Recruits.
9. Authorized and approved staffing for the following full-time position: Office Specialist II (Confidential) in the City Clerk’s Division of the City Manager’s Department.
10.Authorized the City Manager and members of the City’s Negotiation Team to execute the MOU.
ADDITIONAL COUNCIL/BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND SUGGESTIONS – NONE.
ADJOURNMENT – Mayor Stephens adjourned the meeting at 10:50 p.m. in honor and memory of Joe Weber and Roger Neth.
95 Minutes – Regular Meeting January 20, 2026 Page 12 of 12 Minutes adopted on this 3rd day of February, 2026.
___________________________
John Stephens, Mayor
ATTEST:
___________________________
Brenda Green, City Clerk
96 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-617 Meeting Date: 2/3/2026
TITLE:
DESIGNATION OF VOTING DELEGATE FOR THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) 2026 REGIONAL CONFERENCE AND GENERAL ASSEMBLY DEPARTMENT: CITY MANAGER’S OFFICE/CITY CLERK DIVISON
PRESENTED BY: BRENDA GREEN, CITY CLERK
CONTACT INFORMATION: BRENDA GREEN, (714) 754-5221
RECOMMENDATION:
It is recommended that Council Member Mike Buley serve as the delegate for the upcoming 2026 Annual Southern California Association of Governments (SCAG) Regional Conference and General Assembly.
BACKGROUND:
The annual SCAG Regional Conference & General Assembly will be held Thursday, May 7, 2026, through Friday, May 8, 2026 at the JW Marriott Desert Springs Resort & Spa in Palm Desert, CA.
SCAG requests that each member city appoint a delegate to vote at the Assembly.
ANALYSIS:
It is during the Annual General Assembly that resolutions are adopted, setting the legislative platform for SCAG in the coming year. SCAG by-laws entitle each city to one vote in matters affecting municipal or SCAG policy. Each member city is entitled to designate a delegate to participate in the voting.
ALTERNATIVES:
City Council may choose to not appoint a delegate or may select another City Council member as the delegate.
FISCAL REVIEW:
The funding for the conference is available in the Fiscal Year 2025-26 City Council budget in the General Fund (Fund 101).
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and has approved it as to form.
97 File #: 25-617 Meeting Date: 2/3/2026
CITY COUNCIL GOALS AND PRIORITIES:
This item is administrative in nature.
CONCLUSION:
Staff recommends the City Council designate Council Member Mike Buley as the delegate for the upcoming 2026 Annual Southern California Association of Governments (SCAG) Regional Conference and General Assembly.
98 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-117 Meeting Date: 2/3/2026
TITLE:
DESIGNATION OF CITY NEGOTIATORS FOR THE COSTA MESA POLICE MANAGEMENT
ASSOCIATION (CMPMA), THE COSTA MESA POLICE ASSOCIATION (CMPA) AND THE COSTA MESA CITY EMPLOYEES’ASSOCIATION (CMCEA) LABOR NEGOTIATIONS PROCESSES AND
AUTHORIZATION TO PROCEED WITH THE FINANCIAL ANALYSIS OF THE CURRENT
MEMORANDA OF UNDERSTANDING (MOU) PER THE TRANSPARENCY IN LABOR
NEGOTIATIONS COUNCIL POLICY
DEPARTMENT: CITY MANAGER’S OFFICE- HUMAN RESOURCES DIVISION PRESENTED BY: KASAMA LEE, HUMAN RESOURCES MANAGER
CONTACT INFORMATION: KASAMA LEE, HUMAN RESOURCES MANAGER (714) 754- 5169
RECOMMENDATION:
1. Designate City Manager Cecilia Gallardo-Daly as the City’sPrincipal Negotiator, Assistant City Manager Alma Reyes, Human Resources Manager Kasama Lee, and Finance Director Carol Molina as the City’s representatives in negotiations with the CMPMA, CMPA and CMCEA.
2. Designate Liebert Cassidy Whitmore Partner Peter Brown to serve as legal counsel during negotiations with the CMPMA, CMPA and CMCEA.
3. Authorize staff to have the independent fiscal analysis of the current CMPMA, CMPA and CMCEA Memoranda of Understanding (MOU) completed per the requirements of the Transparency in Labor Negotiations Council Policy.
BACKGROUND:
Per the Transparency in Labor Negotiations Council Policy (300-8), the City Council must designate a Principal Negotiator who “shall have extensive prior experience in negotiating public employee collective bargaining agreements and shall be free from any actual or potential conflict of interest with respect to the bargaining unit.” The City shall also be represented by legal counsel, whether or not legal counsel is designated as the Principal Negotiator.
The City Council and/or Principal Negotiator may also designate additional employee(s) to be present during negotiations and to assist the Principal Negotiator as the City Council and/or Principal Negotiator deem appropriate.
99 File #: 26-117 Meeting Date: 2/3/2026
ANALYSIS:
The current Memoranda of Understanding for CMPMA, CMPA and CMCEA expire on June 30, 2026.
Representatives from CMPMA, CMPA and CMCEA have requested the City begin discussions on successor MOUs.
Staff recommends that City Council designate City Manager Cecilia Gallardo-Daly as the City’s Principal Negotiator, Assistant City Manager Alma Reyes, Human Resources Manager Kasama Lee, and Finance Director Carol Molina as the City’srepresentatives in negotiations with the CMPMA, CMPA, and CMCEA. Staff also recommends that Liebert Cassidy Whitmore Partner Peter Brown serve as legal counsel during the negotiations process.
Furthermore, Section 2, Economic Analysis, of the policy requires that the Finance Director prepare an economic analysis that must be verified by an independent auditor. Staff recommends that the City Council authorize staff to have the independent fiscal analysis of the current CMPMA, CMPA and CMCEA MOUs completed per the requirements of the policy.
ALTERNATIVES:
An alternative is to propose other designated representative(s).
FISCAL REVIEW:
The funds for outside legal counsel for labor negotiations are budgeted in the Fiscal Year 2025-26 Adopted Budget in the City Manager’s Department in the General Fund (Fund 101).
LEGAL REVIEW:
The City Attorney’s Office has reviewed the report and approved as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goals:
· Recruit and Retain High Quality Staff
· Strengthen the Public’s Safety and Improve the Quality of Life · Achieve Long-Term Fiscal Sustainability
100
File #: 26-117 Meeting Date: 2/3/2026
CONCLUSION:
1. Designate City Manager Cecilia Gallardo-Daly as the City’sPrincipal Negotiator, Assistant City Manager Alma Reyes, Human Resources Manager Kasama Lee and Finance Director Carol Molina as the City’s representatives in negotiations with the CMPMA, CMPA and CMCEA.
2. Designate Liebert Cassidy Whitmore Partner Peter Brown to serve as legal counsel during negotiations with the CMPMA, CMPA and CMCEA.
3. Authorize staff to have the independent fiscal analysis of the current CMPMA, CMPA and CMCEA MOUs completed per the requirements of the Transparency in Labor Negotiations Council Policy.
101
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-107 Meeting Date: 2/3/2026
TITLE:
CHANGE ORDER FOR THE EMERGENCY GENERATOR UNITS FOR CITY HALL AND THE
COMMUNICATIONS BUILDING
DEPARTMENT: PUBLIC WORKS DEPARTMENT/GENERAL SERVICES
DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: PATRICK BAUER, DEPUTY PUBLIC WORKS DIRECTOR, (714) 754-5029
RECOMMENDATION:
Staff recommends the City Council:
1. Authorize the use of Sourcewell’sCooperative Agreement #092222-CAT with Caterpillar Inc. for a change order of the original purchase of two (2) diesel emergency generators, two (2) automatic transfer switches, and two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems. The City Hall transfer switch is being removed from the quote and a manual transfer switch for the Communications Building is being added.
2. Authorize a change order to the original Purchase Order (PO) for an additional $5,818.50 pulled from the project budget for the purchase of one (1) manual transfer switch for the Communications Building. The PO, now for $395,361.69, originally $389,543.19, through Quinn Power Systems, 3500 Shepherd Street, City of Industry, CA 90601, shall encompass the purchase of two (2) diesel emergency generators, one (1) automatic transfer switch, one (1) manual transfer switch, two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems.
BACKGROUND:
The City Council authorized the use of Sourcewelll’s Cooperative Agreement #092222-CAT on February 18, 2025, to authorize the purchase of two (2) diesel emergency generators, two (2) automatic transfer switches, and two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems in the amount of $389,543.19. Upon the submittal review process, it was noted that the automatic transfer switch at City Hall was only a few years old and didn’tneed to be replaced. Additionally, a manual transfer switch was suggested as an additional item to be installed with the new generator to allow for a quick and safe hookup of a temporary portable generator to perform maintenance on the backup generator to prevent any failures or disruptions at the Communications Building.
102
File #: 26-107 Meeting Date: 2/3/2026
ANALYSIS:
The original quote from Quinn Power Systems, Caterpillar, was received for two (2) new generators, two (2) fuel tanks, two (2) automatic transfer switches, and accompanying equipment in the amount of $389,543.19. The removal of the City Hall automatic transfer switch reduced the purchase price by $17,034, and the addition of the Communications Building manual transfer switch increased the purchase price by $22,434. The difference, including tax, resulted in an additional $5,818.50. The total PO amount will be $395,361.69. The project budget has enough funds to allow for the additional item to be added; however, City Council approval is required to adjust the PO amount.
Purchasing the additional equipment material through Sourcewell meets all requirements set forth in the City of Costa Mesa’sPurchasing Policy and all requirements set forth by the State of California in regard to regional cooperative purchasing agreements. This process confirms that the City still receives the lowest available pricing and meets the competitive bid process requirements. The City has utilized Sourcewell successfully for several previous related purchases.
The quote is included as Attachment 1 and totals a new amount of $395,361.69, which includes all parts, equipment, tax, and delivery.
ALTERNATIVES:
The alternative to this Council action would be to remove the manual transfer switch from the quote and purchase at a later date. Staff has determined that following this route will result in new shipping and processing fees as well as potentially higher prices. Additionally, if the manual transfer switch is installed at a later date, that will result in additional costs for installation.
FISCAL REVIEW:
Funding for the required change order for an additional amount of $5,818.50 is available in the Fiscal Year 2025-26 Capital Improvement Fund (Fund 401).
LEGAL REVIEW:
The City Attorney’s Office has reviewed this staff report and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This project works toward achieving the following City Council goals:
· Maintain and enhance the City’s facilities.
· Strengthen the public’s safety and improve the quality of life.
CONCLUSION:
1. Authorize the use of Sourcewell’s Cooperative Agreement #092222-CAT with Caterpillar Inc. for a change order of the original purchase of two (2) diesel emergency generators, two (2) automatic transfer switches, and two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems. The City Hall transfer switch is being removed from the quote and a manual transfer switch for the Communications Building is being added.
103
File #: 26-107 Meeting Date: 2/3/2026
2. Authorize a change order to the original PO for an additional $5,818.50 pulled from the project budget for the purchase of one (1) manual transfer switch for the communications building. The PO, now for $395,361.69, originally $389,543.19, through Quinn Power Systems, 3500 Shepherd Street, City of Industry, CA 90601, shall encompass the purchase of two (2) diesel emergency generators, one (1) automatic transfer switch, one (1) manual transfer switch, two (2) double wall day tanks for fuel for City Hall and the Communications Building through Quinn Power Systems.
104
Attachment 1
Updated Quote
105
QUOTATION NO. 250058R4
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: December 15, 2025 Page: 1 of 4
To: Contact: Terms: Net Cash, see T&C’s
Company: F.O.B. Jobsite, unloading by others
Address: Sales Rep.: Cameron Early
City, Zip: Contact #: (949) 395 1127
Phone: Email: Email: [email protected]
Project Name: 250058R3 Costa Mesa Comms Bldg and City Hall Gensets Sourcewell Contract #0922220-CAT With 250717 MTS
Qty: Description Unit Price Extension
1 CITY HALL New Caterpillar, Model 15 Diesel Standby Generator Set. Rated 500kW, w/fan, 60Hz, 3Ph, 277/480V at 1800 RPM. EPA Tier 2(Budget)
$ 165,455.00 $ 165,455.00
1 CITY HALL New 2000 Gallon UL-2085 Double Wall Outdoor Rated Day Tank, (Budget) $ 57,529.00 $ 57,529.00 1 Comm. Building New Caterpillar, Model D100-8 Diesel Standby Generator Set. Rated 100kW/, w/fan, 60Hz, 3Ph, 277/480V at 1800 RPM EPA Tier 3 (Budget)
$ 62,831.00 $ 62,831.00
1 Comm. Building New Caterpillar, Automatic Transfer Switch, Open Transition. Rated 600A, 4P, 277/480V, 60Hz, 3Ph, NEMA 1 Enclosure. (Budget)
$ 11,617.00 $ 11,617.00
1 New, CAT, Manual Transfer Switch, With Tap Box, 600A 4 Poles, 3 wire, NEMA 3R $ 22,434.00 $ 22,434.00 1 Comm. Building New 1000 Gallon UL-2085 Double Wall Outdoor Rated Day Tank,(Budget) $ 47,059.00 $ 47,059.00
Approximate Sales Tax at 7.75% $28,436.69
$ 28,436.69
$ 28,436.69
Quote Valid for 30 Days From Date Listed In Quote Header.
After 30 Days Please Contact Your Quinn Sales Representative to Update Quote Optional adders listed below.
Pricing is budgetary, Single Lines, Feeder Schedule and Specifications needed for final price.
Includes standard features as listed in product data sheet and additional accessories as listed herein…
SALES TAX NOT INCLUDED. Buyer responsible for all taxes including any applicable tire fees. The quotation provided herein is for information only, and is not a valid offer to sell unless signed by an officer of Quinn Power Systems in the space provided below. Any offer to sell or any offer accepted shall be subject to the Terms and Conditions page. Unless expressly stated on the face of this quotation, all prices, delivery schedules and product specifications are subject to change without notice. Quotati on is good for 30 days from quote date above, expires after that duration.
Total Price :
(Estimated Sales
Tax Included
Subject to Change)
$ 395,361.69
106
Sourcewell Quote
Sourcewell Contract #092222-CAT
From focus program letter OIL2019 (See Discounts Below) Last Update 1/8/2025
City Hall C15 500kW
Total Quote 165,455$
Cat Generator C15
Generator List Price 215,091$
SW Member Discount % 37%
SW Member Discount $ 79,584$
Sub-Total 135,507$
Net Priced items* 2,127.00$
Sub-Total 137,634$
*Net Priced Items are subject to no further discounts (see Price Lists).
Services / Source Goods List Price
Freight 16,718$
CVA 1,486$
Start up 8,862$
Training 2,219$
0 -$
0 -$
0 -$
0 -$
Sub Total 29,285$
SW Member Discount 5%
SW Member Discount 1,464$
Services Total 27,821$
#Caterpillar: Confidential Green
107
Sourcewell Quote
Sourcewell Contract #092222-CAT
From focus program letter OIL2019 (See Discounts Below) Last Update 1/8/2025
City Hall Tank
Total Quote 57,529$
Cat Generator 0
Generator List Price -$
SW Member Discount % 0%
SW Member Discount $ -$
Sub-Total -$
Net Priced items* -$
Sub-Total -$
*Net Priced Items are subject to no further discounts (see Price Lists).
Services / Source Goods List Price
2500Gal Day Tank 46,935$
Freight 13,622$
0 -$
0 -$
0 -$
0 -$
0 -$
0 -$
Sub Total 60,557$
SW Member Discount 5%
SW Member Discount 3,028$
Services Total 57,529$
#Caterpillar: Confidential Green
108
Sourcewell Quote
Sourcewell Contract #092222-CAT
From focus program letter OIL2019 (See Discounts Below) Last Update 1/8/2025
Comms Bldg ATS
Total Quote 11,617$
Cat Generator 0 *CAT ATS
Generator List Price -$ List Price 10,169$ SW Member Discount % 0% SW Member Discount (20%) 2,034$ SW Member Discount $ -$ Total 8,135$ Sub-Total -$
Net Priced items* -$
Sub-Total -$
*Net Priced Items are subject to no further discounts (see Price Lists).
Services / Source Goods List Price
Start up 1,189$
Freight 2,477$
0 -$
0 -$
0 -$
0 -$
0 -$
0 -$
Sub Total 3,666$
SW Member Discount 5%
SW Member Discount 183$
Services Total 3,482$
#Caterpillar: Confidential Green
109
Sourcewell Quote
Sourcewell Contract #092222-CAT
From focus program letter OIL2019 (See Discounts Below) Last Update 1/8/2025
Comms Bldg C4.4 100kw
Total Quote 62,831$
Cat Generator D100-8
Generator List Price 62,302$
SW Member Discount % 31%
SW Member Discount $ 19,313$
Sub-Total 42,988$
Net Priced items* 1,393.00$
Sub-Total 44,381$
*Net Priced Items are subject to no further discounts (see Price Lists).
Services / Source Goods List Price
Freight 9,536$
CVA 1,115$
Start up 6,551$
Training 2,219$
0 -$
0 -$
0 -$
0 -$
Sub Total 19,420$
SW Member Discount 5%
SW Member Discount 971$
Services Total 18,449$
#Caterpillar: Confidential Green
110
Sourcewell Quote
Sourcewell Contract #092222-CAT
From focus program letter OIL2019 (See Discounts Below) Last Update 1/8/2025
Comms Bldg Tank
Total Quote 47,059$
*Net Priced Items are subject to no further discounts (see Price Lists).
Services / Source Goods List Price
1000 Gal Day Tank 38,390$
Freight 11,146$
0 -$
0 -$
0 -$
0 -$
0 -$
0 -$
Sub Total 49,536$
SW Member Discount 5%
SW Member Discount 2,477$
Services Total 47,059$
#Caterpillar: Confidential Green
111
Sourcewell Quote
Sourcewell Contract #092222-CAT
From focus program letter OIL2019 (See Discounts Below) Comms Bldg MTS
Total Quote 22,434$
Cat Generator 0 *CAT ATS
Generator List Price -$ List Price -$ SW Member Discount % 0% SW Member Discount -$
SW Member Discount $ -$ Total -$
Sub-Total -$
Net Priced items* -$
Sub-Total -$
*Net Priced Items are subject to no further discounts (see Price Lists).
Services / Source Goods List Price CAT ATS/Switch Gear
0 -$ List Price 22,105$
Start Up 2,368$ SW Member Discount 4,421$ Freight 2,632$ 0 17,684$
0 -$
0 -$
0 -$
0 -$
0 -$
Sub Total 5,000$
SW Member Discount 5%
SW Member Discount 250$
Services Total 4,750$
#Caterpillar: Confidential Green
112
QUOTATION NO. 250058R4
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: December 15, 2025 Page: 2 of 4
Accessories and/or modifications
Initial fill of coolant and lube oil
(1 set) Operation & Maintenance manuals (electronic copy) * (additional sets, at additional cost) Factory standard warranty - 2 years from startup service Spare Parts * (set of filters)
Fuel Tank Normal Vent Extension (12’ft above grade) *
Extended Service Coverage - 5 year / 2500 hour, Platinum w/ $0 deductible from startup service
QPS field work
Delivery to jobsite (offload/crane service by others)
Level 3 Startup Service [incl. generator inspection & 4hr load bank test] ~ On-site Training Session [single, 4 hour day]
CSA (Preventative Maintenance) –1 year, Annual
** See adder price below for a separate training session**
Optional adders
SCAQMD Permits to Operate Not Quoted. If Permits are needed to be obtained by Quinn ADD $30,780.00 (Budget number)
Not included
Sales tax
Air, building or construct permits
Offloading/crane service of equipment off delivery truck Installation, wiring, piping, plumbing or anchoring of equipment Diesel fuel, initial fill or for testing
Availability:
Submittals: Estimated (10 Weeks) on receipt and approval of purchase order. (1 electronic copy) Submittal approval is expected not exceed 60 days, additional time may impacted delivery schedule and equipment price increases.
Equipment: Estimated (Varies but about 20-40 Weeks) for factory build time after submittal approval. Subject to change at time of order.
Modifications: Estimated (Additional time TBD) additional time will vary depending on 3rd party or Quinn shop schedule and scope of work.
Not included: Unforeseen factory delays, transit time from factory or vendor and/or delays due to project site readiness. ** Equipment prices and lead times are subject to change without notice.**
NOTES, EXCEPTIONS, CLARIFICATION
Quinn Power Systems is not a general, electrical or installing contractor. Providing equipment and services as described above only.
The equipment offered in this proposal is CAT standard product (with modifications) as listed above based on written request. No specifications or drawings provided for review. No other written details, plans, specification sections, contract documents, general or supplementary conditions apply to this quotation. Equipment is as stated above, call for any revisions to equipment quoted. Exception taken to anything not included in this proposal and as listed below.
Quotation does not include any Sales Tax, Air District or Building Permits, Off-loading or Crane Services, Installation or Anchoring, Initial Fuel fill or Test fuel, Major Testing unless otherwise specified in the Bill of Materials.
Depending on final height of installed generator set, a working platform may be required to access the control panel and maintenance doors. Platforms are not included in this proposal, unless stated above. Call for revised quotation if required.
Startup/Commissioning Services are provided for CAT factory/QPS supplied equipment only. Scope of work for Startup Services available upon request. Out of Scope services are billed on a Time & Material basis in the field at purchaser's expense. QPS standard labor rates apply. Technician services are provided during normal business hours Monday through Friday.
Exception taken to any NETA 3
rd party or independent testing requirements. Any and all testing as listed above to be provided by QPS technicians.
Quinn Group, Inc. dba Quinn Power Systems provides equipment and startup services only. All equipment is installed by others
EMISSIONS NOTE
"California Air Resources Board (CARB) has approved alignment with the federal New Source Performance Standards (NSPS). Such alignment allows for emergency standby engines to be exempt from Tier 4 emissions standards; however, local air districts can require more stringent emissions control. The prospective buyer of the equipment quoted above is hereby notified the NSPS exemption does not apply to non-emergency standby engines (e.g. prime power applications such as peak shaving, parallel operation with the grid, or storm avoidance), or portable engines, even if used for emergency standby. Consult the local air district for permitting requirements and required emissions 113
QUOTATION NO. 250058R4
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: December 15, 2025 Page: 3 of 4
controls. Presently, South Coast Air Quality Management District (SCAQMD) Rule 1470 requires the use of a particulate filter if an engine is located within 100 meters of a school, and may require either a diesel particulate filter or an oxidation catalyst, depending upon engine size, if the installation is within 50 meters of a sensitive receptor. Particulate filters may also be required for Title V and major polluting facilities. For emissions requirements specific to the project for which this engine is being quoted, please contact SCAQMD at 909-396-2000. Unless otherwise listed above a DPF is not included in this proposal, please call for quotation if a DPF is required for this project.”
Caterpillar engines require a minimum of 30% load to prevent engine damage due to wet-stacking. Depending upon the permit and site specific conditions, SCAQMD emergency engine permits will only allow between 20 and 50 hours of runtime per year for non-emergency applications such as testing and exercising. Passive Diesel Particulate Filter systems depend on generator loading of a minimum of 50-60% to achieve minimum exhaust temperature threshold to keep soot regeneration and the filter backpressure within acceptable levels. If the engine will be operated consistently at low loads/low exhaust temperatures, the customer should make provisions to add load via facility operations or a load bank. Active Diesel Particulate Filter systems require no external load in order to regenerate. If listed above, Passive DPF option pricing, does not include a load bank or a load bank circuit breaker. If a load bank is needed for this project, please call for quotation.
TERMS AND CONDITIONS
1. Acceptance of Order.
This Quotation is for Buyer's information only and is not a valid offer to sell unless signed by an authorized representative of Seller in the place provided on the face of this Quotation. Prices, terms and conditions in an order from Buyer, which are inconsistent with the prices, terms and conditions of this Quotation, will be rejected by Seller, and are of no force and effect unless accepted in writing by Seller. Prices, delivery schedules and the scope of work on this Quotation are subject to change at Seller’s discretion.
2. Liability.
Seller's liability on any claim of any kind, including claims for negligence, or for any loss or damage arising out of or connected with the manufacture, sale, delivery, installation, resale or use of any products covered by or furnished under any order connected with this Quotation shall be limited to those claims arising solely from the acts of Seller and Seller shall in no way be liable for any special, indirect, incidental or consequential damages. The term “consequential damages” shall include, but not be limited to, loss of anticipated profits, business interruption, loss of use, revenue, reputation and data, costs incurred, including without limitation, for capital, fuel, power and loss or damage to property or equipment. Buyer expressly acknowledges and agrees that Seller has set its prices in reliance upon the limitations of liability and other terms and conditions specified herein, which allocate the risk between Seller and Buyer and form a basis of this bargain between the parties. Any claims against Seller for shortages in shipments shall be made in writing to Seller within fifteen (15) days of receipt of shipment by Buyer. Unless otherwise provided for in writing, Seller's responsibility for shipment ceases upon delivery to carrier, and any claims for shortage, delays or damage occurring thereafter shall be made direct to carrier by Buyer. Seller shall not be liable for any delays in delivery attributable to strikes, labor disputes, lockouts, accidents, fires, delays in manufacture or in transportation, delays in delivery of component materials, floods, severe weather, or Acts of God, embargoes, governmental actions, or any other cause beyond the reasonable control of Seller. Seller shall not indemnify nor be liable to Buyer, Buyer’s assigns, successors, purchasers, lessees or licensees, or to any person or entity for any claims, losses, expenses or judgments arising out of or resulting in any way from the product or integratio n of compatibility of the product with any other components, processes, facilities or equipment that does not comply with the equipment manufacturer(s)’s recommendations.
3. Shipments.
Unless otherwise specified, all risk of loss from the goods shall shift to Buyer at such time as the goods are delivered to a carrier for shipment to Buyer. Unless otherwise specified, shipment dates are approximate and all quoted prices exclude shipping costs. Shipment of goods under any order accepted by Seller shall be subject to the approval by Seller of Buyer’s financial condition at the time of shipment.
Whether or not terms of payment are specified elsewhere, Seller may, at its option, condition shipments under any order accepted by Seller upon receipt of satisfactory security or of cash prior to shipment. If, at Buyer’s request, shipment of goods under any order accepted by Seller is delayed more than thirty (30) days after the shipment date specified in the order, or the date the goods are ready for shipment, whichever is later, Seller will require immediate payment in full and/or assess additional charges for the expenses incident to such delay.
4. Termination.
In the absence of a written agreement between Buyer and Seller expressing different terms and conditions as to termination, any order accepted by Seller may be terminated prior to completion by Buyer only upon written notice to Seller and payment of Seller’s termination charges. If notice of termination is received by Seller after Seller has committed to buy the principal components for any order, termination charges shall include all direct and indirect costs incurred by Seller and the total profit anticipated by Seller. Additionally, Buyer’s instruction to Seller to stop work for thirty (30) days during the time specified for performance in any order may be construed by Seller as the equivalent of written notice of termination from Buyer and previous stipulations will be in effect.
5. Taxes.
Unless expressly stated, Seller's prices do not include sales, use, excise or similar taxes, which Seller may be required to pay in filling Buyer's order. The amount of any applicable tax shall be paid by Buyer as an additional charge unless specifically included in any order accepted by Seller, or in lieu thereof, Buyer shall provide Seller with a tax exemption certificate acceptable to the taxing authorities.
6. Patents.
Seller shall, at its own expense, defend and save Buyer harmless from the expenses and consequences of any suit or procedure brought against Buyer, based on a claim that the use or sale of goods specified in any order accepted by Seller constitutes an infringement of any United States letters of patent in existence on the date of any such order; provided Buyer promptly notifies Seller in writing of such claim and gives the necessary authorization, information and assistance for the defense of such a claim.
7. Changes.
Seller, and Seller's suppliers, may, at any time, without notice to Buyer, make changes (whether in design, materials, the addition of improvements, or otherwise) in any goods specified in any order accepted by Seller without incurring any obligation of any kind as a result thereof, but only to the extent that such change does not cause the goods specified to fail to meet Buyer's requirements. Buyer may, in its order, provide for changes in its requirements with provision for a corresponding equitable change in the price, if any; but in no instance shall Buyer make changes, which are substantially different from the scope of the original order accepted by Seller.
8. Export Sales.
In the event the goods and services specified in any order accepted by Seller are for export, the Buyer shall be responsible for securing export, import and other licenses or authorizations as may be required.
The conditions specified in this Section apply to all export transactions. This transaction is only for the sale of the equipment requested and detailed in this Quotation. Not included is any startup assistance, field- testing, training or any other services that might be required on site. Also not included is any installation, installation audits, sea trials (if applicable), or installation materials. To ensure proper application, installation, and warranty integrity, Buyer is encouraged to contact the applicable Caterpillar Dealer for these services. The costs of these services are not included in the sale price nor will Seller be responsible for any such related costs.
9. Permits for Equipment Design, Installation and Operation.
As a supplier of equipment, disclaims responsibility for any and all permits or licenses necessary to design, install and operate the equipment due to zoning, air quality, environmental, safety, building or construction codes or use permits pertaining to Buyer’s particular application of such equipment or any similar type of permit. Special attention should be given to the requirements of local air district rules and California Air Resources Board (CARB) regulations pertaining to permit requirements. Seller is quoting on equipment based on the specifications set forth in this Quotation. If additional equipment or engine modifications are required beyond the specifications, such as additional equipment required for compliance by a local air district or CARB, those items are not included and are the responsibility of Buyer. For example, South Coast AQMD (SCAQMD) Rule 1470 may require controls and limits on particulate matter, especially when the engine installation is within 100-meters from a school, or within 50 meters of a sensitive receptor (defined in Rule 1470). Ultra low sulfur fuel is required for particulate filters. CARB Diesel Fuel, or other CARB-approved alternative fuel, is also required for compression ignition (CI) engines operated in California. When indicated in the bill of materials, the proposed equipment may be SCAQMD pre-approved as Certified Equipment. This certification does not eliminate the permit process or responsibility of others to obtain a permit. Procurement of certified equipment assures permitability, reduces the permit processing fees and reduces the time necessary to obtain the permit through SCAQMD.
10. Start-up, Commissioning and Operating Requirements.
Equipment provided in this Quotation may require start-up and commissioning, including inspection(s), to ensure the equipment is installed in accordance with manufacturer(s)’s recommendations and specifications. If Seller has commissioned the equipment, Buyer agrees not to modify the design or components of the installation such that the modifications would violate any legal requirements of the installation, or would cause the installation to deviate from manufacturer(s)’s recommendations and specifications. Buyer acknowledges and agrees that, with respect to products sold to Buyer in connection with this Quotation, Buyer shall have the sole responsibility to ensure the products are properly installed, operated and maintained in accordance with the manufacturer(s)’s recommendations and specifications, and to determine and comply with all applicable Federal, state, local and regulated use restrictions and requirements, including, without limitation, the continuing responsibility to ensure that the use of product is in full compliance with all applicable environmental laws and regulations. Failure to install, operate and maintain the products in accordance with the manufacturer(s)’s recommendations and specifications will invalidate any applicable manufacturer’s warranty.
11. Additional material.
Only those items listed in this Quotation are included with any order. For example, unless specifically identified in this Quotation, the following items are not included with any purchased equipment: any exhaust or fuel piping, main fuel tank, fuel, duct work, special tools, insulation, wiring, cable, bus duct, concrete, anchor bolts, rigging or any material or labor incidental to the installation itself. Buyer specifically assumes responsibility for the provision of any such items if not specifically identified in the Quotation.
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QUOTATION NO. 250058R4
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: December 15, 2025 Page: 4 of 4
12. Hours of services.
When included, delivery, startup assistance, field testing, training or any other services required on site will be provided during the normal weekday working hours of 7:00 am to 4:30 pm. Delivery or services occurring at any other time, weekends or holidays is subject to premium charges.
13. Warranty.
The equipment manufacturer's warranty is the only warranty provided in connection with the equipment described in this Quotation. Buyer is responsible for operating and maintaining the equipment as specified by the manufacturer. The manufacturer’s warranties are exclusive and in lieu of all other warranties either oral or written, express or implied, including but not limited to any warranty of merchantability or fitness for a particular purpose. Seller is not a manufacturer and makes no warranty and shall not, under any circumstances, be liable for any indirect or special, incidental or consequential damages including but not limited to loss of production, loss of profit, loss of use or business interruption, or any other economic loss, whether arising from contract, tort, strict liability or any other theory of law. Buyer, Buyer’s assigns, successors, purchasers or any other person designated to operate the equipment as the end user, is responsible for operating the equipment in accordance with manufacturer(s)’s recommendations and specifications. Failure to perform all scheduled maintenance may result in damage to the equipment, and may be grounds to deny warranty coverage.
14. Terms.
Terms of payment are due upon receipt of invoice with no deductions of any kind for retentions, setoffs, discounts or other similar items. A finance charge of 1.5% per month (not to exceed the maximum allowed by law) will be charged on all past due invoices. When necessary Seller will file a California “Preliminary 20-day notice” pursuant to Section 3097 of the California Civil Code.
15. Cost additives.
A: Unit Cost.
Quotation prices are valid for 30 days only and are based on current market prices as of date of quotation. The Seller reserves the right to adjust the final invoice with a price escalation up to 6% due to 1) purchase orders being received after expiration of quotation, 2) fluctuations in raw materials market prices at time of order, 3) labor rate increases at time of scheduled field services, 4) delays in submittal approvals and/or release of equipment or 5) additional items or services provided that were not included as part of the original quotation. Since final invoicing can and may take place up to a year or more from original quotation date.
B: Delays.
If delivery is delayed by customer Buyer beyond original shipment date, purchase price is due 30 days after original shipment date and a storage and handling charge will be applied and is due each month until delivery. Finance charge of 1.5% per month (not to exceed the maximum allowed by law) is applicable on any amounts arising hereunder or in connection herewith that are not paid when due.
C: Start up.
If construction of the facility or other delays are experienced or expected, which prohibit the initial startup of the equipment beyond one year from delivery additional costs may be imposed including, but not be limited to, long term storage preparation, inspection charges, parts, service, etc.
16. Lead Times.
Lead times are based on manufactures estimated timetables. Project completion time may vary due to delays in receipt of purchase orders, submittal approval, release of equipment, manufactures unforeseen delays in production or holiday schedules. Project completion time frame cannot be guaranteed. Back orders will be processed as soon as available. Part number changes may be made to provide latest improved interchangeable items of equipment.
17. Governing Law and Venue.
The rights and obligations of the parties with respect to the transactions contemplated by this Quotation shall be governed in all respects by the laws of the State of California. The parties hereto irrevocably agree that the exclusive venue for any litigation arising in connection with the transactions specified in this Quotation shall be in the courts located in the County of Los Angeles, California.
18. Attorneys’ Fees and Costs.
In the event of any legal action, controversy, claim, or dispute between the parties involving the transactions contemplated by this Quotation, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorneys’ fees, and costs.
19. Additional Conditions.
Buyer shall furnish to Seller, at no cost, suitable working space, storage space, adequate heat, telephone, light, ventilation, regulated electric power and outlets for testing purposes (if applicable). The facilities shall be within a reasonable distance from where any applicable services are to be provided. Seller and its representatives shall have full and free access to the equipment in order to provide any applicable services. Buyer shall provide the means to shut-off and secure electric power to the equipment and provide safe working conditions. Buyer shall not require Seller or its employees, as a condition to site access or otherwise, to further agree or enter into any agreement, which waives, releases, indemnifies or otherwise limits or expands any rights or obligation whatsoever. Any such agreements shall be null and void. Seller is under no obligation to remove or dispose of parts or equipment unless specifically agreed upon in Seller’s scope of work. Seller-removed parts become the property of Seller. Seller must not perform any electrical power switching unless specifically requested by Buyer, under the supervision of Buyer, and subject to procedures jointly agreed to in advance. Notwithstanding Buyer’s request, Seller may refuse to perform power switching, if in the opinion of Seller, such action would be unsafe. IN THE EVENT THAT SELLER PERFORMS POWER SWITCHING, TO THE FULLEST EXTENT PERMITTED BY LAW, BUYER SHALL INDEMNIFY, DEFEND, AND HOLD SELLER HARMLESS FROM ANY AND ALL LIABILITY, ACTIONS, SUITS, CLAIMS, DEMANDS, DAMAGES, COSTS, AND EXPENSES (“LOSSES”) ARISING OUT OF OR IN ANY WAY CONNECTED WITH OR RESULTING FROM SELLER’S PERFORMANCE OF POWER SWITCHING, REGARDLESS OF WHETHER THE LOSSES RESULT FROM SELLER’S NEGLIGENCE (WHETHER ACTION OR PASSIVE, AND WHETHER SOLE, JOINT, OR CONCURRENT), AND EVEN THOUGH CAUSED IN WHOLE OR IN PART BY A PRE-EXISTING DEFECT, STRICT LIABILITY, OR OTHER LEGAL FAULT OF SELLER. THIS INDEMNITY SHALL APPLY TO ANY ACTS OR OMISSIONS OR NEGLIGENT CONDUCT, WHETHER ACTIVE OR PASSIVE, ON THE PART OF EITHER SELLER OR BUYER. If OSHA or any other federal, state or local government, trade association, or contractual regulations or standards require a “safety person” to be on site during the performance of services, or in the event of a trade union jurisdictional dispute where trade union represented personnel are required to assist or stand by during the performance of services by Seller, Buyer shall be responsible for providing for and paying for any charge or wages for such person(s), as applicable. Buyer shall immediately inform Seller, in writing, at the time of order placement and thereafter, of any unsafe or hazardous substance or condition at the site, including, but not limited to, the presence of asbestos or asbestos-containing materials, and shall provide Seller with any applicable Material Data Safety Sheets regarding the same. Any losses, costs, damages, claims and expenses incurred by Seller as a result of Buyer’s failure to advise Seller shall be borne by Buyer. Seller, in its sole discretion and without cost or penalty, reserves the right to cancel its performance under this Agreement or any order immediately upon written notice to Buyer following Seller's discovery of unsafe or hazardous site substance or condition or any other circumstance altering Seller performance of Services. Buyer shall appoint a representative familiar with the site and the nature of the Services to be performed by Seller to be accessible at all times that Seller personnel are at the site. Seller shall not be liable for any expenses incurred by Buyer in removing, replacing or refurbishing any Buyer equipment or any part of Buyer’s building structure that restricts Seller's access. Buyer's personnel shall cooperate with and provide all necessary assistance to Seller. Seller shall not be liable or responsible for any work performed by Buyer.
ACCEPTED BY:
By: ________________________________
Company: __________________________
Date: ____________________
P.O. #: ____________________________
SUBMITTED BY:
By: Cameron Early
Quinn Power Systems
Phone: (949) 395 1127
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-106 Meeting Date: 2/3/2026
TITLE:
PROFESSIONAL SERVICES AGREEMENT FOR ENGINEERING SERVICES FOR THE CITY’S
PAVEMENT MANAGEMENT PLAN UPDATE
DEPARTMENT: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: SEUNG YANG, P.E., CITY ENGINEER (714) 754-5335 RECOMMENDATION:
Staff recommends the City Council:
1. Approve a Professional Services Agreement (PSA) to Bucknam Infrastructure Group, Inc., 3548 Seagate Way, Suite 230, Oceanside, California, for a term of five (5) years with two (2) one- year extensions for a not to exceed amount of $148,354 to provide annual updates to the City’s Pavement Management Plan (PMP).
2. Authorize the City Manager and the City Clerk to execute the PSA and any future amendments to the agreement.
BACKGROUND:
The City’sstreet network consists of approximately 231 centerline miles of paved streets and alleys, and the network is divided into three segments: Master Plan of Arterial Highways (MPAH), Local Streets, and Alleys that require systematic inspection, analysis and evaluation.
The Pavement Management Plan (PMP) is a tool that the City uses to organize and analyze extensive amounts of pavement evaluation and inspection data to assess the condition of the City’s street network, which is the largest and most complex asset that the City owns and maintains.
The PMP is based on management and pavement engineering algorithms that assist staff in identifying cost-effective strategies for the network’s maintenance and rehabilitation. All cities in Orange County are required to submit a biennial PMP update to the Orange County Transportation Authority (OCTA), as outlined in the Countywide PMP Guidelines Manual. The next PMP update is due to OCTA in June 2026. As part of the update, the City is required to survey the pavement condition of each arterial street every two years and local streets every six years.
The renewed Measure M2 funding program requires that cities in Orange County maintain a uniform approach for rating and evaluating streets using a standardized PMP. The City Council’sgoal is to maintain an average Pavement Condition Index (PCI) of 85. Costa Mesa has consistently maintained a high PCI rating near 85, the second-highest among Orange County cities with a population over 100,000. The pavement condition of the arterial roads was last surveyed in 2024, and the residential
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100,000. The pavement condition of the arterial roads was last surveyed in 2024, and the residential streets were previously surveyed in 2021. The most recent final report for the updated Citywide Pavement Management Program was last submitted to OCTA in June 2024.
In order to meet OCTA Measure M2 funding requirements, the City is required to re-survey the arterial roads in 2026, 2028, and 2030; and the local streets in 2027, and make final report submittals to OCTA in 2026, 2028, and 2030.
ANALYSIS:
The required pavement evaluation services for the project are extensive and necessitate the expertise and experience of a qualified consultant. In coordination with staff from various departments in the City, a scope of work for professional services was developed, and a Request for Proposals (RFP) No. 26-07 (Attachment 1) was posted on PlanetBids on October 21, 2025. A total of six (6) proposals were received on November 12, 2025.
The scope of work under this contract requires the selected consultant to provide the following primary services:
· Review all maintenance and rehabilitation activities previously conducted by the City, as recommended in the most recent Pavement Management Plan. · Collect and record extensive pavement distress data.
· Input pavement distress data into the City’sdatabase and calculate the PCI for each segment utilizing the latest version of OCTA’s approved pavement management software. · Verify database information against City’s GIS database information to add, delete, and/or correct segments, as needed.
· Forecast future PCI values for each segment and create budget scenarios for each network. · Develop a 7-year maintenance and rehabilitation strategy. · Prepare final PMP Reports per OCTA guidelines.
In order to ensure an objective selection process, an evaluation committee was assembled, and all committee members evaluated proposals independently to assess qualifications and experience to address the City’sneeds. The proposals were evaluated based on project understanding, depth of experience, technical expertise, qualified personnel, ability to meet the schedule, and associated factors.
The proposals were screened for compliance with the City’sRFP process. Two (2) proposals did not meet the minimum requirements and, therefore, were deemed non-responsive to the City’s RFP process. The following remaining four (4) consultant proposals were deemed compliant and were submitted to the evaluation committee:
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· Bucknam Infrastructure Group, Inc. (Bucknam) -
Clearly identified the scope of work for various surveys and demonstrated strong understanding of required processes and procedures with respect to PMP evaluations.
Showed strong communication regarding deliverables. Possesses over 25 years of extensive experience with Orange, Los Angeles, San Diego, Riverside, and San Bernardino Counties in PMP project management experience. Has performed well for the City of Costa Mesa in the past. This firm was selected by the Orange County Transportation Authority (OCTA) in 2022 to perform a 10-year Pavement Management Plan analysis on all of its Orange County local agencies’ PMPs.
· Nichols Consulting Engineers, Chartered -
Firm exhibited good history of experience throughout 12 states in over 220 California cities and counties. Relevant experience with 11 Southern California cities and OCTA. Key personnel have also utilized various models to evaluate pavement improvement and maintenance costs over time. Firm has also supported in the development of PMP guidelines for OCTA and has OCTA-certified inspectors.
· Michael Baker International -
Firm has background in utilizing varied technological tools and advances, including GIS and project management. Key personnel are fluent in technical abilities, including Light Detection and Ranging (LIDAR) applications and pavement asset management services. The firm also utilized various statistical models to evaluate pavement improvement and maintenance costs over time.
· Quality Engineering Solutions, Inc. -
The consultant firm has 28 years of experience in pavement engineering and construction inspection, mostly in Southern California. Exhibited private pavement management project experience in master planned communities. Firm personnel have experience and skills to evaluate pavement improvement needs, and to assess maintenance costs over time to support long term planning.
Based on the cumulative review of proposals by the evaluation committee, it was determined that Bucknam possessed the best qualifications and experience in administering the City’sPMP. The evaluation committee found Bucknam to be well qualified to perform the requested services and has performed these professional services for the City in the past with successful results. This is based on the firm demonstrating the following:
· A thorough understanding of the project and its scope. · Substantial experience and technical ability to perform the outlined scope of work. · A proven track record of providing high-level expertise in the systematic inspection, analysis and evaluation of the City’s streets in the past.
Regarding the other three (3) remaining consultant proposers, their proposals were also deemed qualified by the evaluation committee. However, the level of expertise and scope of experience did not measure as favorably to that of Bucknam. In addition, Bucknam, with its many years of experience working with the City of Costa Mesa in preparing its PMP program, has intimate
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knowledge of the City’s street network and OCTA’s requirements.
Therefore, staff recommends the approval of a PSA to Bucknam Infrastructure Group, Inc. (Attachment 2) for a term of five (5) years with two (2) one-year extensions for a not to exceed amount of $148,354.
ALTERNATIVES:
The City Council may elect to reject all proposals, re-advertise, and re-evaluate newly submitted consultant proposals. Staff has determined that doing so will not result in any appreciable increase in the quality of proposers and will only hinder staff’s ability to submit the required Pavement Management Plan update to OCTA in a timely manner. Therefore, staff does not recommend this action.
FISCAL REVIEW:
Funding for this agreement is available in the annual Citywide Street Improvements project in the Gas Tax Fund (Fund 201) and Measure M2 Fairshare Fund (Fund 416).
LEGAL REVIEW:
The City Attorney’s Office has reviewed this staff report and prepared the Professional Services Agreement (PSA) and approves them both as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This project supports the following City Council goals:
· Strengthen the Public’s Safety and Improve the Quality of Life. · Maintain and Enhance the City’s Facilities, Equipment and Technology.
CONCLUSION:
Staff recommends the City Council:
1. Approve a Professional Services Agreement (PSA) to Bucknam Infrastructure Group, Inc., 3548 Seagate Way, Suite 230, Oceanside, California, for a term of five (5) years with two (2) one- year extensions for a not to exceed amount of $148,354 to provide annual updates to the City’s Pavement Management Plan (PMP).
2. Authorize the City Manager and the City Clerk to execute the PSA and any future amendments to the agreement.
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RFP26-07.C0592
REQUEST FOR PROPOSAL
FOR
PAVEMENT MANAGEMENT PLAN SERVICES
RFP NO. 26-07
PUBLIC WORKS DEPARTMENT
CITY OF COSTA MESA
Released on
October 21, 2025
ATTACHMENT 1
120
RFP26-07.C0592
REQUEST FOR PROPOSAL
FOR
P AVEMENT MANAGEMENT PLAN SERVICES
T
he City of Costa Mesa (hereinafter referred to as the “City”) is requesting Proposals from qualified contractors to update the City’s pavement management program. The awarded Contractor, (hereinafter referred to as “Contractor”) shall be in accordance with the Sample Professional Services Agreement, Appendix B terms, conditions, and scope of work. Prior to submitting a Proposal, Proposers are advised to carefully read the instructions below, including the Sample Professional Services Agreement and any solicitation appendix/exhibits. The term is expected to be for 3 years with 2 one-year renewal options. The City reserves the right to award one or more contracts for this service.
I. GENERAL INFORMATION
The City of Costa Mesa is a general law city, which operates under the council/manager form of government with an annual General Fund budget of over $ 186.8 million and a total budget of $2 24 million for Fiscal Year 2025-2026.
The City of Costa Mesa, incorporated in 1953, has an estimated population of 115,000 and has an area of 16.8 square miles. It is in the northern coastal area of Orange County, California, and is bordered by the Cities of Santa Ana, Newport Beach, Huntington Beach, Fountain Valley, and Irvine.
The City is a “full-service city” providing a wide range of services. These services include police and fire protection; animal control; emergency medical aid; building safety regulation and inspection; street lighting; land use planning and zoning; housing and community development; maintenance and improvement of streets and related structures; traffic safety maintenance and improvement; and full range of recreational and cultural programs.
The City of Costa Mesa is home to the Segerstrom Center for the Arts, Orange County Fairgrounds, South Coast Repertory Theater and the South Coast Plaza Shopping Center, which is the single largest commercial activity center in the City. The volume of sales generated by South Coast Plaza secures its place as the highest volume regional shopping center in the nation.
The successful Proposer shall have experience in similar types of services. All Proposers responding to this Request for Proposal (RFP) will be evaluated based on their expertise, prior experience on similar projects, demonstrated competence, ability to meet the requested services, adequate staffing, reference check, understanding of services, cost and responsiveness to the needs and concerns of the City of Costa Mesa.
1. I
mportant Notice: The City has attempted to provide all information available. It is the responsibility of each Proposer to review, evaluate, and, where necessary, request any clarification prior to submission of a Proposal. Proposers are not to contact other City personnel with any questions or clarifications concerning this Request for Proposal (RFP). Any City response relevant to this RFP other than through or approved by Cit y’s Purchasing Department is unauthorized and will be considered invalid.
If clarification or interpretation of this solicitation is considered necessary by City, a written addendum shall be issued, and the information will be posted on PlanetBids. Any interpretation of, ATTACHMENT 1
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or correction to, this solicitation will be made only by addendum issued by the City’s Purchasing Department. It is the responsibility of each Proposer to periodically check PlanetBids website to ensure that it has received and reviewed all addenda to this solicitation. The city will not be responsible for any other explanations, corrections to, or interpretations of the documents, including any oral information.
2. S
chedule of Events: This Request for Proposal shall be governed by the following schedule:
Release of RFP October 21, 2025
Deadline for Written Questions October 28, 2025, at 11:00 a.m.
Responses to Questions Posted November 4, 2025
Proposals are Due November 12, 2025, by 2:00 p.m.
Approval of Contract TBD
**All dates are subject to change at the discretion of the City.
3. Proposer’s Minimum Requirements: Interested and qualified Proposers that can demonstrate their ability to successfully provide the required services outlined in Appendix A – Scope of Services, of this RFP are invited to submit a proposal, provided they meet the following requirements. All requirements must be met at the time of the proposal due date. If these requirements are not met, the proposal may not receive further consideration, as determined at the sole discretion of the City.
a. T
he consultant must provide five (5) years references for projects of similar size and scope that have been completed within the last five (5) years in California. b. The consultant shall maintain a local office with a competent representative who can be reached during normal working hours or emergencies who is authorized to make decisions on matters pertaining to this contract with the City. Office facilities that support daily operations must be within ninety (90) miles of the City.
c. A
ll proposers must identify the project manager, and the individual authorized to negotiate the contract on behalf of the consulting firm; and provide an organization chart showing all proposed key project team members.
d. A
project team organization chart identifying those who will perform work, and a brief resume of each team member, including similar type project in which they have been directly involved shall be included. Identify the Project Manager, Project Engineer, and qualified inspectors proposed for this project. The Project Manager will be the primary contact person to represent your firm and to conduct the presentation, if invited for an interview. Sub- consultants, if any, shall be identified in the proposal with the same requirements as for the main consultant.
II. G
ENERAL INSTRUCTIONS AND PROVISIONS
1. Proposal Format Guidelines: Interested entities or contractors are to provide the City of Costa Mesa with a thorough Proposal using the following guidelines: Proposal should be typed and should contain no more than 25 typed pages using a 12- point font size, including cover letter, Index/Table of Contents, tables, charts, and graphic exhibits, but excluding resumes of key people and pricing forms. Each Proposal will adhere to the following order and content of ATTACHMENT 1
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sections. Proposal should be straightforward, concise and provide “layman” explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a comple te and clear description of the offer. Proposals which appear unrealistic in terms of technical commitments, lack of technical competence or are indicative of failure to comprehend the complexity and risk of this contract may be rejected. The following Proposal sections are to be included in the Proposer’s response:
• Cover Letter: A cover letter, not to exceed two pages in length, should summarize key elements of the Proposal. An individual authorized to bind the Contractor must sign the letter. Indicate the address and telephone number of the contractor’s office located nearest to Costa Mesa, California, and the office from which the project will be managed. And include proposed working relationship among the offering agency and subcontractors, if applicable.
• B
ackground and Project Summary Section : The Background and Project Summary Section should describe your understanding of the City, the work to be done, and the objectives to be accomplished. Refer to Scope of Services, Appendix A of this RFP. • P
roject Approach and Methodology: Provide a detailed description of the approach and methodology that will be used to fulfill each requirement listed in the Scope of Services of this RFP. The section should include:
1. Describes familiarity of project and demonstrates understanding of work and project objectives moving forward.
2. Detailed description of efforts your firm will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Services" section.
3. Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion.
4. A proposed schedule indicating stages of work, time frames, and ability to perform the required services in a timely manner shall be included in the proposal
5. Proposers are encouraged to provide additional innovative and/or creative approaches for providing the service that will maximize efficient, safe, and cost - effective operations or increased performance capabilities. • Qualifications & Experience of the Firm : Describe the qualifications and experience of the organization or entity performing services/projects within the past eight years that are similar in size and scope to demonstrate competence to perform these services. Information shall include:
1. R
elevant experience, specific qualifications, and technical expertise of the firm and sub-consultants to provide construction management services.
2. Submit a description of the organization’s qualifications, experience and abilities that make it uniquely capable of providing the services specified in the Scope of Work.
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3. If the owner is a corporation please provide Name of corporation, corporate office street address, city, state, and zip code, state where incorporated, date of incorporation, first and last name of officers, local office address, city, state & zip, and the date local office opened its doors for business.
4. If the owner is a partnership or joint venture, please provide Name of partnership or joint venture, principal office street address, city, state, and zip code, state of organization, date of organization, first and last name of general partner(s), local office address, city, state, and zip code, and date local office opened its doors for.
5. Provide a list of current and previous contracts like the requirements for this project in Costa Mesa, including all public agencies served (if any). For each, provide a brief description of the scope of work performed, the length of time you have been providing services, and the name, title, and telephone number of the person who may be contacted regarding your organization’s service record. • Financial Capacity: The City is concerned about the proposers’ financial capability to perform and therefore is requesting copies of audited financials from the past three years to allow an evaluation of firm’s financial capabilities.
• K
ey Personnel: It is essential that the Proposer provide adequate experienced personnel, capable of and devoted to the successful accomplishment of work to be performed under this contract. The Proposer must agree to assign specific individuals to the key positions. o I
dentify the members of the staff who would be assigned to act for Proposer’s firm in key management and filed positions providing the services described in the Proposal, and the functions to be performed by each.
o I
nclude resumes or curriculum vitae of each such staff member, including name, position, telephone number, email address, education, and years and type of relevant experience.
• C
ost Proposal: Provide a structured cost proposal in a separate cost file. The cost file shall include hourly rates of the proposed key personnel, inclusive of all anticipated applicable fees for the types of support described in this RFP . The City shall not provide reimbursement for business or travel -related expenses, materials, fees, licensing or other costs incurred; therefore, such costs must be absorbed in the hourly rate. Proposals shall be valid for a minimum of 180 days following submission. • D
isclosure: Please disclose all past or current business and personal relationships with any current Costa Mesa elected official, appointed official, City employee, or family member of any current Costa Mesa elected official, appointed official, or City employee. Any past or current business relationship may not disqualify the firm from consideration. • S
ample Professional Services Agreement: The firm selected by the City will be required to execute a Professional Services Agreement with the City. A sample of the Agreement is enclosed as Appendix B but may be modified to suit the specific services and needs of the City. If a Proposer has any exceptions or conditions to the Agreement, these must be ATTACHMENT 1
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submitted for consideration with the Proposal. Otherwise, the Proposer will be deemed to have accepted the form of Agreement.
• C
hecklist of Forms to Accompany Proposal: As a convenience to Proposers, following is a list of the forms Appendix C included in this RFP, which should be included with Proposals:
1. V
endor Application Form
2. Company Profile & References
3. Ex Parte Communications Certificate
4. Disclosure of Government Positions
5. Disqualifications Questionnaire
6. Bidder/Applicant/Contractor Campaign Contribution
2 . Process for Submitting Proposals:
• Content of Proposal: The Proposal must be submitted using the format as indicated in the Proposal format guidelines.
• P
reparation of Proposal : Each Proposal shall be prepared simply and economically, avoiding the use of elaborate promotional material beyond those sufficient to provide a complete, accurate and reliable presentation.
• C
ost for Preparing Proposal : The cost for developing the Proposal is the sole responsibility of the Proposer. All Proposals submitted become the property of the City.
Cost proposal shall be submitted in a separate file. The cost proposal is confidential and will be unsealed after all proposals have been reviewed, and the most qualified consultant has been selected. Proposals shall be valid for a minimum of 180 days following submission. • For
ms to Accompany Proposal: Appendix C forms shall be attached at the end of the Proposal except for the Cost Proposal which shall be submitted in a separate file. • N
umber of Proposals: Submit one (1) PDF file format copy of your proposal in sufficient detail for thorough evaluation and comparative analysis. • S
ubmission of Proposals: Complete written Proposals must be submitted electronically in PDF file format via the planetbids.com website not later than 2 :00 p.m. (P.S.T) on November 12, 2025. Proposals will not be accepted after this deadline. Proposals received after the scheduled closing time will not be accepted. It shall be the sole responsibility of the Proposer to see that the proposal is received in proper time. Faxed or e- mailed Proposals will not be accepted. NO EXCEPTIONS.
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nquiries: Questions about this RFP must be posted in the Q & A tab on Planetbids no later than October 28, 2025, at 11:00 A.M. The City reserves the right not to answer all questions.
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The City reserves the right to amend or supplement this RFP prior to the Proposal due date.
All addendum(s), responses to questions received, and additional information will be posted on Planetbids.
F
rom the date that this RFP is issued until a firm or entity is selected and the selection is announced, firms or public entities are not allowed to communicate outside the process set forth in this RFP with any City employee other than the contracting officer listed above regarding this RFP. The City reserves the right to reject any Proposal for violation of this provision. No questions other than posted on Planetbids will be accepted, and no response other than written will be binding upon the City.
• C
onditions for Proposal Acceptance : This RFP does not commit to the City to award a contract or to pay any costs incurred for any services. The City, at its sole discretion, reserves the right to accept or reject any or all Proposals received because of this RFP, to negotiate with any qualified source(s), or to cancel this RFP in part or in its entirety. The City may waive any irregularity in any Proposal. All Proposals will become the property of the City of Costa Mesa, USA. If any proprietary information is contained in the Proposal, it should be clearly identified.
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nsurance & W-9 Requirements: Upon recommendation of contract award, Contractor will be required to submit the following documents with ten (10) days of City notification, unless otherwise specified in the solicitation:
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nsurance - City requires that licensees, lessees, and vendors have an approved Certificate of Insurance (not a declaration or policy) or proof of legal self-insurance on file with the City for the issuance of a permit or contract. Within ten (10) consecutive calendar days of award of contract, successful Bidder must furnish the City with the Certificates of Insurance proving coverage as specified in the sample contract.
W-9
– Current signed form W -9 (Taxpayer Identification Umber & Certification) which includes Contractor’s legal business name(s).
3. Evaluation Criteria: The City’s evaluation and selection process will be conducted in accordance with Chapter V, Article 2 of the City's Municipal Code (Code). In accordance with the Code, the responsive responsible proposer shall be determined based on evaluation of qualitative factors. At all times during the evaluation process, the following criteria will be used.
Sub-criteria are not necessarily listed in order of importance. Additional sub-criteria that logically fit within a particular evaluation criterion may also be considered even if not specified below.
1. Project Approach & Methodology ------- 30%
2. Qualifications & Experience of Firm ------- 30%
3. Key Personnel ---- 35%
4. Cost Proposal ----- 5%
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4. Evaluation of Proposals and Selection Process: In accordance with its Municipal Code, the City will adhere to the following procedures in evaluating Proposals. An Evaluation Committee, which may include members of the City's staff and possibly one or more outside experts, will screen and review all Proposals according to the weighted criteria set forth above.
While price is one basic factor for award, it is not the sole consideration.
A. Responsiveness Screening : Proposals will first be screened to ensure responsiveness to the RFP. The City may reject as non-responsive any Proposal that does not include the documents required to be submitted by this RFP. At any time during the evaluation process, the City reserves the right to request clarifications or additional information from any or all Proposers regarding their Proposals.
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nitial Proposal Review: The Committee will initially review and score all responsive written Proposals based upon the Evaluation Criteria set forth above. The Committee may also contact the Proposer’s references. Proposals that receive the highest evaluation scores may be invited to the next stage of the evaluation process. The City may reject any Proposal in which a Proposer’s approach or qualifications are not considered acceptable by the City. An unacceptable Proposal is one that would have to be substantially rewritten to make it acceptable. The City may conclude the evaluation process at this point and recommend award to the highest ranked consultant or proceed to interview the highest ranked consultants.
C. I
nterviews, Presentation, Reference Checks, Revised Proposals, Discussions:
Following the initial screening and review of Proposals, the Proposers included in this stage of the evaluation process may be invited to participate in an oral interview and make a presentation. Interviews /presentations, if held, are tentatively scheduled for the week of December 15 and will be conducted at City of Costa Mesa City Hall, 77 Fair Drive, Costa Mesa, CA 92626 or virtually at the discretion of the City . The dates are subject to change. The individual(s) from the Proposer’s organization that will be directly responsible for carrying out the contract, if awarded, should be present at the oral interview/presentation. The oral interview may, but is not required to, use a written question/answer format for the purpose of clarifying the intent of any portions of the Proposal.
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n addition to conducting an oral interview, the City may during this stage of the evaluation process also contact and evaluate the Proposer’s references, contact any Proposer to clarify any response or request revised or additional information, contact any current users of a Proposer’s services, solicit information from any available source concerning any aspect of a Proposal, and seek and review any other information deemed pertinent to the evaluation process.
Following the conclusion of this stage of the evaluation process, the Committee will again rank all Proposers according to the evaluation criteria set forth above. The Committee may conclude the evaluation process at this point and make a recommendation for the award. Once the highest ranked consultant is identified, t he City will open the Cost Proposal and enter negotiations.
Recommendation for the award is contingent upon the successful negotiation of final contract terms. Negotiations shall be confidential and not subject to disclosure to ATTACHMENT 1
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competing Proposers unless an agreement is reached. If contract negotiations cannot be concluded successfully within a time determined by the City, the City may terminate negotiations and commence negotiations with the next highest scoring Proposer or withdraw the RFP.
5. Protests: Failure to comply with the rules set forth herein may result in rejection of the protest.
Any proposals accepted pursuant to the formal procurement procedure set forth in the Proposal procedure may be appealed in accordance with the following procedure:
• T
he Proposer shall file the written notice of appeal with the P urchasing Officer at least ten (10) working days prior to proposal award date specified in the notice of recommendation to award.
• The written notice of appeal must include specifics as to the nature of the appeal. • The Proposer must provide any and all documentation to support the appeal. • The purchasing officer will respond in writing to the Proposer within five (5) working days.
• In the event the appeal is denied by the purchasing officer, the Proposer may appeal the purchasing officer’s ruling to the C ity Council at the next available council meeting.
6. A
ccuracy of Proposals: Proposers shall take all responsibility for any errors or omissions in their Proposals. Any discrepancies in numbers or calculations shall be interpreted to reflect the cost to the City.
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f prior to the contract award, a Proposer discovers a mistake in their Proposal which renders the Proposal unwilling to perform under any resulting contract, the Proposer must immediately notify the facilitator and request to withdraw the Proposal. It shall be solely within the City's discretion as to whether withdrawal will be permitted. If the solicitation contemplated evaluation and award of "all or none" of the items, then any withdrawal must be for the entire Proposal. If the solicitation provided for evaluation and award on a line item or combination of items basis, the City may consider permitting withdrawal of specific line item(s) or combination of items. 7 . Responsibility of Proposers: The City shall not be liable for any expenses incurred by potential Contractors in the preparation or submission of their Proposals. Pre- contractual expenses are not to be included in the Contractor’s Pricing Sheet. Pre- contractual expenses are defined as, including but not limited to, expenses incurred by Proposer in:
• P
reparing Proposal in response to this RFP.
• Submitting that Proposal to the City.
• Negotiating with the City any matter related to the Proposal; and, • Any other expenses incurred by the Proposer prior to the date of the award and execution, if any, of the contract.
8. C
onfidentiality: The California Public Records Act (Cal. Govt. Code Sections 6250 et seq.) mandates public access to government records. Therefore, unless information is exempt from disclosure by law, the content of any request for explanation, exception, or substitution, response to this RFP, protest, or any other written communication between the City and Proposer, shall ATTACHMENT 1
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be available to the public. The City intends to release all public portions of the Proposals following the evaluation process at such a recommendation made to the City Council.
If the Proposer believes any communication contains trade secrets or other proprietary information that the Proposer believes would cause substantial injury to the Proposer’s competitive position if disclosed, the Proposer shall request that the City withhold from disclosure the proprietary information by marking each page containing such proprietary information as confidential. Proposer may not designate its entire Proposal as confidential nor designate its Price Proposal as confidential.
Submission of a Proposal shall indicate that, if Proposer requests that the City withhold from disclosure information identified as confidential, and the City complies with the Proposer’s request, Proposer shall assume all responsibility for any challenges resulting from the non- disclosure, indemnify and hold harmless the City from and against all damages (including but not limited to attorney’s fees and costs that may be awarded to the party requesting the Proposer information), and pay any and all costs and expenses related to the withholding of Proposer information. Proposer shall not make a claim, sue, or maintain any legal action against the City or its directors, officers, employees, or agents concerning the disclosure, or withholding from disclosure, of any Proposer information. If Proposer does not request that the City withhold from disclosure information identified as confidential, the City shall have no obligation to withhold the information from disclosure and may release the information sought without any liability to the City.
9. Ex Parte Communications : Proposers and Proposers’ representatives should not communicate with the City Council members about this RFP. In addition, Proposers and Proposers’ representatives should not communicate outside the procedures set forth in this RFP with an officer, employee, or agent of the City, including any member of the evaluation panel, except for the RFP Facilitator, regarding this RFP until after Contract Award. Proposers and their representatives are not prohibited, however, from making oral statements or presentations in public to one or more representatives of the City during a public meeting.
A "Proposer" or "Proposer's representative" includes all the Proposer's employees, officers, directors, consultants and agents, any subcontractors or suppliers listed in the Proposer's Proposal, and any individual or entity who has been requested by the Proposer to contact the City on the Proposer's behalf. Proposers shall include the Ex Parte Communications Form, Appendix C with their Proposals certifying that they have not had or directed prohibited communications as described in this section.
10. Conflict of Interest: The Proposer warrants and represents that it presently has no interest and agrees that it will not acquire any interest which would present a conflict of interest under California Government Code Sections 1090 et seq., or Sections 87100 et seq., during the performance of services under any Agreement awarded. The Proposer further covenan ts that it will not knowingly employ any person having such an interest in the performance of any Agreement awarded. Violation of this provision may r esult in any Agreement awarded being deemed void and unenforceable.
11. D
isclosure of Governmental Position: In order to analyze possible conflicts that might prevent a Proposer from acting on behalf of the City, the City requires that all Proposers disclose in their ATTACHMENT 1
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Proposals any positions that they hold as directors, officers, or employees of any governmental entity. Additional disclosure may be required prior to contract award or during the term of the contract. Each Proposer shall disclose whether any owner or employee of the firm currently hold positions as elected or appointed officials, directors, officers, or employees of a governmental entity or held such positions in the past twelve months using the attached Disclosure of Government Positions Form, Appendix C.
12. C
onditions to Agreement: The selected Proposer will execute a Maintenance Services Agreement for Services with the City describing the Scope of Services to be performed, the schedule for completion of the services, compensation, and other pertinent provisions. The contract shall follow the sample form of Agreement provided as Appendix B to this RFP.
All Proposers are directed to particularly review the indemnification and insurance requirements set forth in the sample A greement. The terms of the agreement, including insurance requirements, have been mandated by the City and can be modified only if extraordinary circumstances exist.
Submittal of a Proposal shall be deemed acceptance of all the terms set forth in this RFP and the sample agreement for services unless the Proposer includes with its Proposal, in writing, any conditions or exceptions requested by the Proposer to the proposed Agreement.
13. Disqualification Questionnaire: Proposers shall complete and submit, under penalty of perjury, a standard form of questionnaire inquiring whether a Proposer, any officer of a proposer, or any employee of a Proposer who has a proprietary interest in the Proposer, has ever been disqualified, removed, or otherwise prevented from proposing on, or completing a federal, state, or local government project because of a violation of law or safety regulation and if so, to explain the circumstances. A Proposal may be rejected on the basis of a Proposer, any officer or employee of such Proposer, having been disqualified, removed, or otherwise prevented from proposing on, or completing a federal, state, or local project because of a violation of law or a safety regulation, Appendix C.
14. S
tandard Terms and Conditions: The City reserves the right to amend or supplement this RFP prior to the Proposal due date. All addendum(s) and additional information will be posted via PlanetBids. Proposers should check this web page daily for new information.
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A
PPENDIX A
SC
OPE OF SERVICES
FOR
PAVEMENT MANAGEMENT PLAN SERVICES
1. INTRODUCTION
T
he City's roadways consist of approximately 231.2 centerline miles paved streets. The roadways are divided into three networks: Master Plan of Arterial Highways (MPAH), Local Streets, and Alleys.
• 74.4 center miles of MPAH roadways
• 156.8 center miles of local residential roads
• 14.7 center miles of local alleys
The pavement conditions of the MPAH r oads were last surveyed in 2024; however, the local networks were surveyed in 2021. The final report for the updated Citywide Pavement Management Plan was last submitted to OCTA in June 2024.
The consultant shall resurvey the MPAH roads in 2026, 2028 and 2030, the local streets in 2027 and prepare Final reports in 2026, 2028 and 2030 per the OCTA guidelines.
2. SCOPE OF CONSULTANT SERVICES
The proposal should include the following tasks and any additional tasks deemed necessary by the Consultant shall be clearly identified in the proposal:
Task 1.1 - Management and Administration
The Consultant shall monitor project progress and maintain project files. Other responsibilities include supervising and reviewing the inspection process and pavement report for conformance with OCTA guidelines. The Consultant shall meet with City staff to review schedule, budget, project documents, project goals, format of deliverables and clarify responsibility of each party.
Task 1.2 - Update Maintenance & Rehabilitation History
Review all maintenance and rehabilitation activities conducted by the City since the last PMP update.
Update the City's database to include all street segments that have been rehabilitated since the last update. City staff will provide the current database in Micro PAVER 7.0 (.e70) format and a list of streets improved since the last update.
Task 1.3 - Pavement Condition Surveys
Collect and record pavement distress data, as per ASTM D6433 and OCTA guidelines. The pavement distress data shall be collected using the windshield survey method supplemented with walking surveys.
Input pavement distress data into the City's database and calculate Pavement Condition Index (PCI) for each segment utilizing the lates t version of MicroPAV ER 7.0 software. City staff will prov ide the
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current database in MicroPAVER 7.0 (.e70) format. The consultant shall keep a log of any discrepancies between the database information (i.e. dimensions, surface type, etc.) and actual field conditions, and shall coordinate with City staff to correct the database as necessary.
Corrections/changes to the database shall not be made without prior City staff approval.
Task 1.4 - Database Verification & Organization
Verify database information against City's GIS database information to add, delete, and/or correct segments, as needed. Organize and re-label branches and segments in a more logical manner.
T
ask 1.5-Budgetary Analysis
Forecast future PCI values for each segment and create OCTA-required budget scenarios for each network utilizing the latest version of MicroPAVER 7.0 software. The consultant shall coordinate with City staff to develop a 7- year maintenance & rehabilitation strategy (including but not limited to selecting segments, treatment type, costs, year of implementation, and any unfunded backlog of pavement needs).
Task 1.6 - Final Report
The consultant shall prepare a final Pavement Management Program report and any other required submittal items, as per OCTA guidelines. The report shall include, without limitation, the methods, findings and recommendations of the consultant, which shall be presented in a single comprehensive document which, should include findings generated as part of other tasks described herein.
G
eneral Requirements
• All work shall be performed in conformance with the City and OCTA's policies, procedures, and standards.
• The Consultant has total responsibility for the accuracy and completeness of all inspections performed and documents prepared. The documents furnished under the Agreement shall be of a quality acceptable to the City. The criteria for acceptance shall be a product of neat appearance, well organized, and technically and grammatically correct. The assumption of the number of review rounds is not allowed.
• The City has traditionally used paper distress forms but electronic data collection (using laptop/tablet computers) will be acceptable. The paper distress forms shall be submitted to the City for the City's records or the methodology for upload of electronic data collected shall be clearly defined and a method for data verification provided.
P
roject Deliverables
• Updated database in MicroPAVER 7.0 (.e70) format; digital file on CD or thumbdrive. o Updated M&R work data
o Updated pavement condition survey data
o Update Budgetary Analysis Scenarios
o A seven-year plan for road maintenance and rehabilitation • Final PMP report; digital file on CD or thumbdrive and 1 hard copy. • Updated GIS files/themes (.mxd/shapefiles) format, digital file on CD or thumbdrive.
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3. EXAMINATION OF SITE PRIOR TO SUBMITTING PROPOSAL
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ach Consultant must fully know all project conditions and the effort required to successfully complete the project. Failure to do so will not relieve the selected Consultant of the obligations to carry out the contract.
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-124 Meeting Date: 2/3/2026
TITLE:
CONTINUATION REQUEST OF AN APPEAL OF THE PLANNING COMMISSION’SDECISION TO UPHOLD THE ECONOMIC AND DEVELOPMENT SERVICES DIRECTOR’SDECISION TO DENY
A REASONABLE ACCOMMODATION REQUEST TO DEVIATE FROM CERTAIN REQUIREMENTS OF THE ZONING CODE TO OPERATE A SOBER LIVING HOME. OPERATED BY THE OHIO HOUSE AT 115 EAST WILSON STREET, UNITS A THROUGH E DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES
DEPARTMENT/PLANNING DIVISION
PRESENTED BY: VICTOR MENDEZ, SENIOR PLANNER
CONTACT INFORMATION: VICTOR MENDEZ, SENIOR PLANNER (714) 754-5276 RECOMMENDATION:
Staff recommends the City Council open the public hearing and continue the item to the April 21, 2026, meeting, pursuant to staff’s request.
BACKGROUND:
The appeal was agendized for the December 2, 2025, City Council meeting. Prior to the meeting, but after the public hearing was noticed, the applicant submitted a request to continue the item to the February 3, 2026, City Council meeting. The City Council opened the public hearing and voted (7-0) to continue the item.
Before the February 3, 2026 agenda was publicized, staff requested to continue the item to the April 21, 2026, City Council meeting to gather additional information.
ANALYSIS:
Staff requested that the public hearing be continued to a date certain to the April 21, 2026, City Council meeting. Staff will present the item at the April 21, 2026, meeting.
ALTERNATIVES:
There are no recommended alternatives.
FISCAL REVIEW:
The fiscal review will be included as part of the April 21, 2026, report.
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File #: 26-124 Meeting Date: 2/3/2026
LEGAL REVIEW:
The legal review will be included as part of the April 21, 2026, report.
CITY COUNCIL GOALS AND PRIORITIES:
The priorities will be included as part of the April 21, 2026, report.
CONCLUSION:
The item will be presented at the April 21, 2026, City Council meeting.
148
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 25-627 Meeting Date: 2/3/2026
TITLE:
ADOPTION OF AN ORDINANCE AMENDING TITLE 13 OF THE COSTA MESA MUNICIPAL CODE
TO ALLOW FOR MINISTERIAL APPROVAL OF TWO-UNIT SMALL LOT ORDINANCE PROJECTS (PCTY-25-0007)
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES
DEPARTMENT/PLANNING DIVISION
PRESENTED BY: CHRIS YEAGER, SENIOR PLANNER
CONTACT INFORMATION: CHRIS YEAGER, SENIOR PLANNER, (714) 754-4883 RECOMMENDATION:
Staff recommends the City Council adopt Ordinance No. 2026-01 approving revisions to Title 13 of the Costa Mesa Municipal Code (Zoning Code) to allow for ministerial approval of two-unit Small Lot Ordinance (SLO) projects.
149
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 25-627 Meeting Date: 2/3/2026
TITLE: ADOPTION OF AN ORDINANCE AMENDING TITLE 13 OF THE COSTA MESA MUNICIPAL
CODE TO ALLOW FOR MINISTERIAL APPROVAL OF TWO -UNIT SMALL LOT ORDINANCE PROJECTS (PCTY-25-0007)
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING
DIVISION
PRESENTED BY: CHRIS YEAGER, SENIOR PLANNER
CONTACT INFORMATION: CHRIS YEAGER, SENIOR PLANNER, (714) 754-4883
RECOMMENDATION:
Staff recommends the City Council adopt Ordinance No. 2026 -XX, approving revisions to Title 13 of the Costa Mesa Municipal Code ( Zoning Code) to allow for ministerial approval of two-unit Small Lot Ordinance (SLO) projects.
BACKGROUND:
On December 8 , 2025, the Planning Commission reviewed the proposed Code Amendment. The Planning Commission supported the ordinance and voted 5-2 (Vice Chair Zich and Commissioner Dickson dissenting) to recommend that the City Council adopt the proposed ordinance. Agenda details for the meeting are found in the following link:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7773714&GUID=CA876B52-3B66-4948- 8923-756C5F19C165
At its regular meeting of January 20, 2026, the City Council conducted a legally noticed mee ting and introduced on first reading an ordinance amending Costa Mesa Municipal Code Title 13 to allow for the ministerial processing of two-unit Small Lot Ordinance projects. The City Council voted 5-1 (Buley absent) to introduce for first reading, by title only, Ordinance No. 2026-01. The City Council discussed the need to streamline housing processes and increase housing opportunities in the City. See the links below for the January 20, 2026, City Council Agenda Report and video:
January 20, 2026, Agenda Report
https://costamesa.legistar.com/LegislationDetail.aspx?ID=7804152&GUID=0CD7A8AD-1A40-414D- AC3C-1B7FE3E81C91https
January 20, 2026, Meeting Video:
https://costamesa.granicus.com/player/clip/4341?view_id=14&redirect=true
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Item #: 25-627 Meeting Date: 2/3/2026
ANALYSIS:
Ordinance No. 2026-01 is included as Attachment 1 to this report. The Ordinance is being presented for final adoption. If approved, the Ordinance would become effective on the 31st day after adoption.
ENVIRONMENTAL DETERMINATION
The adoption of the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), the common -sense exemption. This exemption is typically applied to procedural -only code amendments in which no increase in density is created, no new land uses ar e authorized, and no reasonably foreseeable physical change to the environment could occur. The proposed Ordinance fits squarely within this category. It establishes a ministerial review process and objective standards for two-unit residential developments on parcels already zoned for residential use, and it does not expand the range of permitted uses or increase allowable density beyond what is already established under the General Plan and existing zoning regulations. The Ordinance also does not authorize construction on any specific site or grant any development entitlement; rather, it simply streamlines the review process by removing discretionary hearings and clarifying procedural steps. Any future project would remain subject to ministerial review and would be independently responsible for demonstrating eligibility for any applicable CEQA exemption. Because the Ordinance is limited to procedural changes and has no potential to result in a reasonably foreseeable physical impact on the environment, it is exempt under CEQA Guidelines Section 15061(b)(3).
ALTERNATIVES:
The City Council may 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 after introduction, the modified Ordinance would need to be brought back at a future meeting for adoption.
FISCAL REVIEW:
On January 20, 2026, in conjunction with the first reading of the Ordinance, the City Council adopted Resolution No. 2026-01 to establish a new fee applicable to two-unit Small Lot Subdivisions and SB 9 projects, designed to recover the City’s costs for staff time required to process and review such applications under the revised procedures. Staff time required for application processing will be reduced, and the proposed fee will help achieve full cost recovery.
LEGAL REVIEW:
The proposed Resolution, draft Code Amendment and report have been prepared in conjunction with and review by the City Attorney’s Office
PUBLIC NOTICE:
Pursuant to government Code Section 65854(a), a public notice was published once in the Daily Pilot newspaper on January 29, 2025 exceeding the minimum 5 days prior to the February 3, 2026, public hearing.
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Item #: 25-627 Meeting Date: 2/3/2026
Any public comments received for the February 3, 2026 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 following City Council Goal:
Diversify, Stabilize and Increase Housing to Reflect Community Needs
CONCLUSION:
Staff recommends that the City Council adopt Ordinance No. 2026-01 approving Code Amendment PCTY-25-0007 to allow for ministerial approval of two-unit SLO projects.
152
ATTACHMENT 1
Ordinance No. 2026-xx Page 1 of 11
ORDINANCE NO. 2026-01
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, AMENDING TITLE 13 OF THE COSTA MESA MUNICIPAL CODE (PLANNING ZONING AND DEVELOPMENT) TO ALLOW FOR MINISTERIAL
PROCESSING OF TWO -UNIT SMALL LOT ORDINANCE PROJECTS (CODE AMENDMENT PCTY-2025-0007)
THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY FIND AND DECLARE AS FOLLOWS:
WHEREAS, the Zoning Code (Title 13 of Costa Mesa Municipal Code) sets the zoning and land use regulations for the City of Costa Mesa in general; and WHEREAS, the purpose of this code amendment is to reduce barriers to developing two-unit small lot ordinance projects in the City; and WHEREAS, a duly noticed public hearing was held by the Planning Commission on December 8, 2025 with all persons having the opportunity to speak for and against the proposal; and
WHEREAS, the Planning Commission recommended that the City Council adopt this ordinance updating the Zoning Code as set forth herein on a 5-2 (Zich and Dixon voting no) vote; and,
WHEREAS, the City Council held a public hearing on January 20, 2026, with all persons having the opportunity to speak for and against the proposal.
WHEREAS, the City Council held a public hearing on February 3, 2026, the City Council heard a second reading of Ordinance 26-01.
Now, therefore, THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Title 13 Chapter II, Section 13-29 Planning Application Review Process, Table 13-29 (c) of the Costa Mesa Municipal Code is hereby amended to read as follows:
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Ordinance No. 2026-01 Page 2 of 11
TABLE 13-29(c)
PLANNING APPLICATION REVIEW PROCESS
Planning
Applications
Public
Notice
Required
Public
Hearing
Required
Recommending
Authority
Final Review
Authority
Notice
of
Decision
Development
Review
Minor
Modification
No No None Planning
Division No
Reasonable
Accommodation No No None Planning
Division No
Lot Line
Adjustment No No None Planning
Division No
Tentative Parcel
Map for Urban
Lot Splits and
Ministerial
Small
Lot Subdivisions
No No None Planning
Division No
Special Use
Permit Yes Yes None Planning
Division No
Administrative
Adjustment
Minor
Conditional Use
Permit Minor
Design Review
Planned
Signing
Program
Yes No None Zoning
Administrator Yes
Design Review
Mobile Home
Park
Conversion
Common
Interest
Development
Conversion
(Residential or
Nonresidential)
Specific Plan
Conformity
Review
Yes Yes Planning Division Planning
Commission Yes
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Ordinance No. 2026-01 Page 3 of 11
TABLE 13-29(c)
PLANNING APPLICATION REVIEW PROCESS
Planning
Applications
Public
Notice
Required
Public
Hearing
Required
Recommending
Authority
Final Review
Authority
Notice
of
Decision
Tentative Parcel
Map
Tentative Tract
Map
Variance
Conditional Use
Permit Density
Bonus
Master Plan
Master Plan—
Preliminary
Yes Yes Planning Division
Planning
Commission
(excepted
where noted
otherwise in
this zoning
code)
Yes
Redevelopment
Action Yes Yes Planning Commission Redevelopment
Agency Yes
Rezone Yes Yes
Planning Commission;
and, if located in a
redevelopment project
area, the
Redevelopment
Agency
City Council No
Local Register
of Historic
Places
No No
Planning Commission
or other
commission/committee
as designated by the
City Council
City Council Yes
Certificate of
Appropriateness
No No
Planning Commission
or other commission/
committee as
designated by the City
Council
Planning
Commission or
other
commission/
committee as
designated by
the City Council
No
Section 2. T
itle 13 Chapter V, Section 13-42.2 Planning Applications Required of the Costa Mesa Municipal Code is hereby amended to read as follows:
SECTION 13-42.2: Planning application required.
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Ordinance No. 2026-01 Page 4 of 11
(a) Small lot subdivisions are permitted in appropriate residential districts and not in combination with other development standards in the overlays zones, subject to approval of the following planning application as may be applicable. This requirement is in addition to other permits or certificates required by law. (1) All new small lot development projects for three or more main dwelling units shall be processed according to the design review procedures contained in section 13-29. Projects with two main dwelling units being proposed or converted shall be processed ministerially subject to the development standards within this chapter and the residential design guidelines as contained in the Two Unit Small Lot Ordinance Checklist.
(2) All small lot development projects for three or more main dwelling units require approval of a tentative tract or parcel map as required by law. A tentative tract map or parcel map shall not be required until a design review has been approved; however, the map may be processed concurrently. Small lot development projects consisting of two main dwelling units shall be processed ministerially.
(b) No person shall construct, sell, lease, convey, maintain or use a lot in a small lot subdivision project within the city without first complying with the provisions of this article.
Section 3. T itle 13 Chapter V, Section 13-42.3 Development Standards and Requirements of the Costa Mesa Municipal Code is hereby amended to read as follows:
SECTION 13-42.3: Development standards and requirements.
(a) Applicability. The provisions of this section shall apply to all new residential small lot subdivisions of 15 lots or less in multi-family zones and not in combination with other development standards in the overlays zones except as allowed in Table 13-42 below.
(b) Development standards. Table 13-42 identifies the development standards for small lot subdivision developments. See also Article 9 general site improvement standards of this chapter for additional requirements. Projects shall comply with all applicable standard plans and specifications and adopted city and state codes, as well as the following provisions:
(1) The location and orientation of all buildings shall be designed and arranged to preserve natural features by minimizing the disturbance to the natural environment. Natural features such as trees, groves, waterways, scenic points, historic spots or landmarks, bluffs or slopes shall be delineated on the site plan and considered when planning the location and orientation of buildings, open spaces, underground services, walks, paved areas, playgrounds, parking areas and finished grade elevations. Pre- existing development should guide the building setbacks and new development should preserve the existing character of the neighborhood. (2) The site design must consider both the design elements of each unit and how these designs will enhance the overall neighborhood character and vitality of the street and sidewalk. Building setbacks and site planning 156
Ordinance No. 2026-01 Page 5 of 11
must relate to surrounding built form, respecting the overall neighborhood character and existing topography. Additionally, each unit must exhibit a high level of design quality with well-articulated entries and façades, proportionate windows, quality building materials and contextual landscaping.
(3) All structures proposed to be constructed within a project shall conform to the following requirements:
a. Each unit shall be provided with direct pedestrian and vehicular access to a public street, or an alley or a common drive connecting to a public street/alley.
b. Structure shall be constructed to minimize impact of the proposed development on the light, air and privacy of adjacent properties.
(4) On-site lighting shall be provided in all parking areas, vehicular access ways, and along major walkways. The lighting shall be directed onto driveways and walkways within the project and away from dwelling units and adjacent properties, and shall be of a type approved by the development services department.
(5) The development shall comply with the provisions of Chapter XI, subdivisions, which may include, but are not limited to, land dedication and improvements, such as drainage improvements and payment of fees. (6) Outside uncovered and unenclosed storage of boats, trailers, recreational vehicles and other similar vehicles shall be prohibited unless specifically designated areas for the exclusive storage of such vehicles are set aside on the final master plan and provided for in the covenants, conditions, and restrictions. Where such areas are provided, they shall be enclosed and screened from view on a horizontal plane from adjacent areas by a combination of six-foot high opaque fences and permanently maintained landscaping.
Table 13-42
SMALL LOT SUBDIVISION STANDARDS
STANDARDS
SINGLE-FAMILY UNITS (located on individual dwelling
unit lots and excluding townhouses)
Maximum Number of
Stories & Building
Height
2 stories/27 feet, except as allowed in the Westside Overlay Districts.
Note: Lofts, as defined in section 13-6, without exterior access and having only clerestory windows will not be
regarded as a story. See also Attic discussion below.
Attics Attics shall not be heated or cooled, nor contain any electrical outlets or operable windows. In zoning districts where the maximum number of stories is two stories, attics above second stories shall be an integral part of the second story roofline and not appear as a 3rd story on any building elevation.
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Ordinance No. 2026-01 Page 6 of 11
Table 13-42
SMALL LOT SUBDIVISION STANDARDS
STANDARDS
SINGLE-FAMILY UNITS (located on individual dwelling
unit lots and excluding townhouses)
Windows in any attic space above the second story shall be incidental and limited to a dormer style.
Maximum Density
(based on gross
acreage)
Same as underlying zoning district or as specified in an applicable specific plan.
Minimum Open
Space (development
lot)
35% of total lot area. No asphalt shall be permitted for paved areas. Parking and driveways shall consist of
decorative concrete, pavers or other materials as deemed appropriate by the Development Services Director. This
requirement may be decreased to a minimum of up to 30%, if the difference in the area is provided as additional open guest parking, located in a common area, and not exclusive for any specific unit.
Minimum Open
Space (individual
unit)
200 square feet with no dimension less than 10 feet.
Development Lot Separately owned private property interests or any portion thereof, necessary or desirable for common use, are subject to recordation of an easement for reciprocal access and maintenance. All areas of a development with 5 or more
parcels, subject to a reciprocal access and/or maintenance easement shall be maintained by an association that may be incorporated or unincorporated. The association may be referred to as a maintenance association.
Parking • Three-bedroom or more units (including a den or home office) – 2 garage spaces and 2 open parking spaces.
• Two-bedroom or less units (including a den) – 2 garage spaces and one open parking.
• No tandem parking is permitted for open or guest parking spaces.
For developments with 5 or more units (up to 10 units)
where open/guest parking spaces are provided in driveways in front of garages for exclusive use of that unit, one additional on-site guest parking shall be provided. Two additional open guest-parking shall be provided for
developments with more than 10 units.
• For all small lot developments subject to the provisions of this article, all open parking not located within an individual driveway shall be unassigned and nonexclusive.
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Ordinance No. 2026-01 Page 7 of 11
Table 13-42
SMALL LOT SUBDIVISION STANDARDS
STANDARDS
SINGLE-FAMILY UNITS (located on individual dwelling
unit lots and excluding townhouses)
Distance Between
Buildings
(development lot)
6 feet minimum
Driveway Width
(development lot)
10-foot minimum, except 16-foot minimum driveway is
required if the driveway serves tenants and/or guest parking for more than one dwelling unit. Driveway width shall be a maximum of 26 feet for lots less than 50 feet wide and a maximum of 50% for lots greater than 50 feet wide.
Driveway Length
Straight-in driveways to garages shall have a minimum
length of 19 feet from the ultimate public or private right-of- way. No driveways shall be more than 5 feet in length if parking is not provided in front of garage.
Driveways accessing rear parcels shall be in compliance with the requirements of the Parking Design Standards,
minimum separation between driveways and maximum 50%
hardscape requirement.
Mechanical
Equipment
(excluding antennas
and flush-mounted
solar panels on
roofs)
Roof-top location is prohibited unless completely screened from public rights-of-way and adjacent properties.
Development Lot
Front Setback
20 feet
Development Lot
Side yard Setback
(interior)
5 feet
Development Lot
Side Setback (street
side, if applicable)
10 feet
Note: Driveways providing straight-in access from a public street to a garage shall be at least 19 feet long, as
measured from the ultimate public or private right-of-way.
Development Lot
Rear yard Setback
(interior)
15 feet
Development Lot
Rear Setback
Abutting a Publicly
Dedicated Alley
5 feet; however, garages may be required to be set back further to ensure adequate back up distance. Rear Yard
Coverage does not apply.
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Ordinance No. 2026-01 Page 8 of 11
Table 13-42
SMALL LOT SUBDIVISION STANDARDS
STANDARDS
SINGLE-FAMILY UNITS (located on individual dwelling
unit lots and excluding townhouses)
Flag Lots and Alley
Fronting Lots
Flag lots are required to be accessed with a minimum 16- foot wide driveway unless serving one unit in which case a minimum of driveway width of 10-feet shall be provided.
Parcels with alley frontage should include a minimum 8-foot wide pedestrian access to the public street in the front.
Parcels with frontage only on public alleys are prohibited.
Bluff Top Setback No building or structure closer than 10 feet from bluff crest (see section 13-34 Bluff-top development).
Roof or Eaves
Overhang; Awning
2 feet 6 inches into required side setback or building
separation area.
5 feet into required front or rear setback.
Open, Unenclosed
Stairways
Not permitted
Chimneys May extend 2 feet above maximum building height.
Fireplaces 2 feet into required setback of building separation area Automatic Roll-Up
Garage Doors
Required
Location of Open
Parking
Guest parking shall be located within a reasonable distance of the unit it serves. Detached garages that are not located within a reasonable distance to the units they are intended to serve are prohibited.
Trash Storage All units shall be provided with a small alcove inside or outside the unit to allow storage of at least three trash carts without encroaching into the garage space.
All efforts shall be made to provide on-site trash service.
Trash carts shall be stored on-site for trash pick up to the greatest extent possible.
Above-Ground Pools
and Spas
Prohibited in front yards and subject to 5-foot side and rear setback from the main structures.
LANDSCAPING
A detailed landscape plan prepared pursuant to Chapter VII Landscaping Standards shall be approved by the Planning Division prior to issuance of any building permits.
SIGNS (See Chapter VIII).
FENCES AND WALLS
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Ordinance No. 2026-01 Page 9 of 11
Table 13-42
SMALL LOT SUBDIVISION STANDARDS
STANDARDS
SINGLE-FAMILY UNITS (located on individual dwelling
unit lots and excluding townhouses)
Fences and walls placed between the property line and required setback line for main buildings shall conform to the city's walls, fences, and landscaping standards.
See Article 9 General Site Improvement Standards of this chapter for further information.
PREEXISTING DEVELOPMENT
Small lot subdivisions and structures constructed, permitted or approved under the small lot ordinance prior to October 18, 2018, shall be considered conforming with regard to the above provisions.
TWO UNIT CONVERSIONS
Projects proposing to subdivide a property with two existing units shall comply with all development standards within this table.
Section 4. Compliance with CEQA. Pursuant to the California Environmental Quality Act (CEQA), this ordinance is exempt from the provisions of the CEQA under CEQA Guidelines Section 15061(b)(3) (“Common Sense Exemption”) as it can be seen with certainty that these minor amendments to the Zoning Code will not have a significant effect on the environment.
Section 3. Inconsistencies. Any provision of this Ordinance which is inconsistent with state law shall be interpreted in a manner to be consistent with state law. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.
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. 161
Ordinance No. 2026-01 Page 10 of 11
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.
PASSED AND ADOPTED this 3rd day of February, 2026.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
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Ordinance No. 2026-01 Page 11 of 11
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. 2026-01 was duly introduced for first reading at a regular meeting of the City Council held on the 20 th day of January 2026,
and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the 3rd day of February, 2026, 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 3
rd day of February, 2026.
__________________________
Brenda Green, City Clerk
163
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-116 Meeting Date: 2/3/2026
TITLE:
ADOPT AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, REQUIRING
STAFFING AT SELF-SERVICE CHECKOUT STATIONS
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: JAY BARKMAN, GOVERNMENT AFFAIRS MANAGER
CONTACT INFORMATION: JAY BARKMAN, GOVERNMENT AFFAIRS MANAGER (714) 754-5347
RECOMMENDATION:
Staff recommends the City Council Adopt Ordinance No. 2026-XX Adding Article 7 of Chapter II of Title 9 to the Costa Mesa Municipal Code relating to Grocery and Drug Store Staffing Standards for Self-Service Checkout Stations.
BACKGROUND:
At the November 4, 2025, City Council meeting, the City Council directed staff to return with a draft ordinance replicating the City of Long Beach’s ordinance.
At the January 20, 2026, City Council meeting, the City Council received public comments and directed staff to revise the draft ordinance (Attachment 1). The revisions included removing the alternative compliance language, addressing food retail stores over 85,000 square feet, and including local store management in the notice of violation requirements. Staff was further directed to return to Council in one year for a review.
ANALYSIS:
The proposed ordinance (Attachment 2) requires food and drug retail establishments to have dedicated staffing of one employee per three self-checkout stations and to limit self-checkout to 15 items or less. The ordinance also prohibits secure or locked items from going through self-checkout.
Enforcement of the ordinance is allowed by civil action from employees or customers.
The City Council received staff’spresentation at the January 20, 2026, City Council meeting and discussed questions on staff’sproposed revisions to the City of Long Beach ordinance that address Costa Mesa’slandscape. Specifically, discussion occurred on the notice of violation requirements to stores providing 7 days to cure and the reliability of data to forecast consumer behavior. Council also questioned the proposed alternative compliance language and expressed concerns that it did not address staffing or workload concerns and did not treat all grocery stores equally.
Public comments were received from the United Food and Commercial Workers (UFCW) and store
164
File #: 26-116 Meeting Date: 2/3/2026
Public comments were received from the United Food and Commercial Workers (UFCW) and store employees supporting an ordinance more closely modeling the City of Long Beach ordinance.
Overall, employees expressed concerns that stores were placing too many machines in operation without proper supervision to support customers. Additionally, employees stated they were assigned duties, including oversight of locked items, that prevented assisting customers or monitoring for theft.
The UFCW provided a letter opposing any revision to the Long Beach ordinance that provided alternative compliance, didn’tinclude addressing food retails stores over 85,00 square feet, and the new notification of violation language.
Representatives of store owners and store managers spoke in opposition of any need for an ordinance. They stated that retail theft had been addressed via a package of state legislation passed in 2024 that considered and rejected restrictions on self-checkout as they did not represent a significant source of theft. Store representatives also felt that staffing concerns had been addressed with the UFCW in their 2025 Collective Bargaining Agreements (CBA). The provisions of the CBAs include required staffing of self-checkout banks and that one full-service checkout lane be open from the hours of 8:00 a.m. to 7:00 p.m. Lastly, concerns were expressed with enforcement through private right of action and store or employee liability, especially to the extent they could effectively enforce the 15 items or less limit and the restriction on secure or locked items from use of self- checkout.
The City Council on a motion by Councilmember Gameros and seconded by Councilmember Marr, introduced for first reading by title only and waiving further reading, an ordinance substantially based on the City of Long Beach that:
1. Maintains the proposed 7 day right to cure;
2. Eliminates the alternative compliance language;
3. Addresses food retail stores over 85,000 square feet; and
4. Requires notice to local store management in addition to any contact designated by a store.
Language from the Long Beach Ordinance has been restored for large food retail stores over 85,000 square feet with 10% of floor space dedicated to non-taxable goods, such as groceries and prepared foods. For example, the Target (Harbor Blvd. location) is already covered by the ordinance as a drug retail store and would also be categorized as a food retail store under this provision. Any future large warehouse stores would likely be subject to this provision.
Further, Council directed staff to include additional language requiring notification to the local store managers. This would help ensure proper notification to address reported violations.
Additionally, the City Council directed staff to return to Council in one year to provide a review of such ordinance.
ALTERNATIVES:
The City Council may 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 after introduction, the
165
File #: 26-116 Meeting Date: 2/3/2026
If the City Council chooses to make substantive modifications to the Ordinance after introduction, the modified Ordinance would need to be brought back at a future meeting for adoption.
FISCAL REVIEW:
The direct impacts to the City’s General Fund (Fund 101) cannot be quantified at this time.
LEGAL REVIEW:
The City Attorney reviewed this agenda report and the ordinance 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.
CONCLUSION:
Staff recommends the City Council Adopt Ordinance No. 2026-XX Adding Article 7 of Chapter II of Title 9 to the Costa Mesa Municipal Code relating to Grocery and Drug Store Staffing Standards for Self-Service Checkout Stations.
166
Ordinance No. 2026-xx Page 1 of 7
ORDINANCE NO. 2026-xx
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADDING ARTICLE 7 TO CHAPTER II OF TITLE 9 OF THE COSTA
MESA MUNICIPAL CODE RELATING TO GROCERY AND DRUG STORE STAFFING
STANDARDS FOR SELF-SERVICE CHECKOUT STATIONS
THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY FIND AND DECLARE AS FOLLOWS:
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, on November 4, 2025, the City Council directed staff to return with a draft ordinance to establish staffing requirements for self-service checkout stations; and WHEREAS, the City Council desires to establish staffing standards for self- service checkout stations located in retail grocery and/or drug stores.
Now, therefore, THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Article 7 is hereby added to Chapter II of Title 9 of the Costa Mesa Municipal Code to read as follows:
GROCERY AND DRUG STORE STAFFING STANDARDS FOR SELF-SERVICE
CHECKOUT STATIONS
9-170 Purpose.
It is in the public’s interest to require grocery and drug stores to adopt effective preventative measures that will address the impacts on public health and safety that retail theft creates within the context of self-service checkout operations where theft commonly occurs but remains largely unchecked and underreported. Regulating the staffing of self-service checkout operations will address the hostile and unsafe working conditions for employees, and unsafe shopping environments for customers. 9-171 Short Title.
This ordinance shall be known as the “Self-Service Checkout Staffing Requirements.” 9-172 Definitions.
ATTACHMENT 1
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Ordinance No. 2026-xx Page 2 of 7
For the purpose of this Ordinance:
“City” means the City of Costa Mesa.
“Customer” means an individual who buys consumer goods from a Drug Retail Establishment or Food Retail Establishment.
“Drug Retail Establishment” means a retail store that sells a variety of prescription and nonprescription medicines and miscellaneous items, including drugs, pharmaceuticals, sundries, fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, prepared foods, and other merchandise.
“Employee” means a worker employed directly by a hiring entity at a Drug Retail Establishment or Food Retail Establishment. Employee does not include managers, supervisors or confidential employees.
“Food Retail Establishment” means a retail store that is either: (1) over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite consumption, including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods and/or prepared foods (other household supplies or products are secondary to the primary purpose of food sales); or (2) over eighty-five thousand (85,000) square feet and with ten percent (10%) of their sales floor area dedicated to the sale of non-taxable merchandise including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods and/or prepared foods.
“Non-Self-Service Checkout station” means a station that is not a Self-Service Checkout and at which an employee provides human assistance to a customer for scanning, bagging, and/or accepting payment for the customer’s purchases. “Self-Service Checkout” means the automated processes that enable customers to scan, bag, and pay for their purchases without human assistance, including but not limited to fixed self-checkout, scan-and-go self-checkout, or mobile self-checkout. “Self-Service Checkout station” means a station at a fixed location within a Drug Retail Establishment and/or Food Retail Establishment at which a customer can engage in a Self-Service Checkout for the customer’s purchases.
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9-173 Self-Service Checkout requirement.
A. Drug Retail Establishments and Food Retail Establishments that provide Self- Service Checkout options shall provide at least one Non-Self-Service Checkout station staffed by an Employee that is available during the times that a Self-Service Checkout option is available to customers, and Drug Retail Establishments and Food Retail Establishments shall establish, implement, and advertise limits to Self-Service Checkout to purchases of no more than fifteen (15) items.
B. Drug Retail Establishments and Food Retail Establishments shall have an established workforce policy that prohibits customers from using a Self-Service Checkout station to purchase either of the following:
1. Items that require customers to provide a form of identification, including, but not limited to, alcohol and tobacco products.
2. Items subject to special theft-deterrent measures that are affixed to the item, including, but not limited to, electronic article surveillance, ink, or other tags, or items placed in locked cabinets, that require the intervention of an Employee to remove them before purchase.
C. Drug Retail Establishments and Food Retail Establishments shall notify the public of this Ordinance by prominently posting signage in a location accessible to customers, which includes either a link or QR code to the City of Costa Mesa website regarding this Ordinance, a summary of the public’s rights under this Ordinance, a physical and/or email address to which notifications of violations of this Ordinance may be delivered, and the enforcement options available to the public pursuant to this Article. Failure to have and/or maintain an address pursuant to this section shall waive a Drug and/or Food Retail Establishment’s ability to assert lack of notice in any civil action brought pursuant to this Ordinance.
D. Self-Service Checkout stations shall be located to enable observation and surveillance from both employees of Drug Retail Establishments and Food Retail Establishments and local law enforcement.
9-174 Self-Service Checkout staffing requirements.
A. Drug Retail Establishments and Food Retail Establishments that provide Self- Service Checkout options shall assign at least one (1) Employee to supervise the Self- 169
Ordinance No. 2026-xx Page 4 of 7
Service Checkout operation at all times that Self-Service Checkout is in operation during business hours. The assigned Employee shall have no other work responsibilities that would interfere with their ability to maintain direct visual inspection and surveillance of the Self-Service Checkout operations.
B. In the event a Drug Retail Establishment or Food Retail Establishment operates two (2) or more Self-Service Checkout stations, the Drug Retail Establishment or Food Retail Establishment shall maintain a staffing ratio of at least one (1) Employee for every three (3) Self-Service Checkout Stations (1:3 ratio). The manner in which this standard is implemented may take into account operational and logistical feasibility. 9-175 Enforcement.
A. A Customer or Employee must notify on-site management verbally or in writing and notify a Drug Retail Establishment or Food Retail Establishment in writing at the address established pursuant to section 9-173(c) of a violation, after which the establishment shall have seven calendar days from the date of notification to cure the violation. If the violation is not cured, a Customer or Employee of a Drug Retail Establishment or Food Retail Establishment may bring a private right of action in the Superior Court of the State of California against a Drug Retail Establishment or Food Retail Establishment for violating
this Article and, upon prevailing, may be awarded:
1. A civil penalty for each violation of this Article of one hundred dollars ($100) for each employee of the Drug Retail Establishment or Food Retail Establishment. Each day the violation is not cured, the penalty shall increase an additional one hundred dollars ($100) per employee per day up to a limit of one thousand dollars ($1,000) per employee per day for each day in which the violation remains uncured.
2. Attorneys’ fees and costs.
9-176 Retaliatory action prohibited.
No Drug Retail Establishment or Food Retail Establishment shall terminate, reduce in compensation, or otherwise discriminate against any Employee for seeking to enforce their rights under this Article by any lawful means, for participating in proceedings related to this Article, for opposing any practice proscribed by this Article, or for otherwise asserting rights under this Article.
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9-177 Alternative Compliance
As an alternative means of compliance, a Drug Retail Establishment or Food Retail Establishment shall implement all the following security measures:
A. Self-Service Checkout Stations are separated from Non -Self Service Checkout stations by railing or other barriers.
A. At least one Non -Self Service Checkout station is in operation and located between the public exit and the Self-Service Checkout Stations allowing employees to monitor customers exiting.
B. At least one staff person is dedicated to the self-checkout area during all hours of self- checkout operation.
Section 2. Inconsistencies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance.
Section 3. Severability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, or the application thereof to any person, is for any reason held to be invalid or unconstitut ional 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 or portion thereof, irrespective of the fact that any one or more subsections, subdivi sions, 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 4. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.
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Section 5. Certification. 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.
PASSED AND ADOPTED this ___day of _____, 2026.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2026-xx was duly introduced for first reading at a regular meeting of the City Council held on the ____day of _________ 2026, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the ___ day of _________, 2026, 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 ___________, 2026.
__________________________
Brenda Green, City Clerk
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Ordinance No. 2026-xx Page 1 of 6
ORDINANCE NO. 2026-xx
AN O
RDINANCE OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADDING ARTICLE 7 TO CHAPTER II OF TITLE 9 OF THE COSTA
MESA MUNICIPAL CODE RELATING TO GROCERY AND DRUG STORE STAFFING
STANDARDS FOR SELF-SERVICE CHECKOUT STATIONS
T
HE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA DOES HEREBY FIND AND DECLARE AS FOLLOWS:
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, on November 4, 2025, the City Council directed staff to return with a draft ordinance to establish staffing requirements for self-service checkout stations; and WHEREAS, the City Council desires to establish staffing standards for self-service checkout stations located in retail grocery and/or drug stores.
N
ow, therefore, THE CITY COUNCIL OF THE CITY OF COSTA MESA , CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. A rticle 7 is hereby added to Chapter II of Title 9 of the Costa Mesa Municipal Code to read as follows:
G
ROCERY AND DRUG STORE STAFFING STANDARDS FOR SELF-SERVICE
CHECKOUT STATIONS
9-170 Purpose.
It is in the public’s interest to require grocery and drug stores to adopt effective preventative measures that will address the impacts on public health and safety that retail theft creates within the context of self-service checkout operations where theft commonly occurs but remains largely unchecked and underreported. Regulating the staffing of self- service checkout operations will address the hostile and unsafe working conditions for employees, and unsafe shopping environments for customers. 9-171 Short Title.
This ordinance shall be known as the “Self-Service Checkout Staffing Requirements.” 9-172 Definitions.
ATTACHMENT 2
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Ordinance No. 2026-xx Page 2 of 6
For the purpose of this Ordinance:
“City” means the City of Costa Mesa.
“Customer” means an individual who buys consumer goods from a Drug R etail Establishment or Food Retail Establishment.
“Drug Retail Establishment” means a retail store that sells a variety of prescription and nonprescription medicines and miscellaneous items, including drugs, pharmaceuticals, sundries, fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, prepared foods, and other merchandise. “Employee” means a worker employed directly by a hiring entity at a Drug Retail Establishment or Food Retail Establishment. Employee d oes not include managers, supervisors or confidential employees.
“Food Retail Establishment” means a retail store that is either: (1) over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite consumption, including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods and/or prepared foods (other household supplies or products are secondary to the primary purpose of food sales) ; or (2) over eighty -five thousand (85,000) square feet and with ten percent (10%) of their sales floor area dedicated to the sale of non- taxable merchandise including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods and/or prepared foods.
“Non-Self-Service Checkout station” means a station that is not a Self-Service Checkout and at which an employee provides human assistance to a customer for scanning, bagging, and/or accepting payment for the customer’s purchases. “Self-Service Checkout” means the automated processes that enable customers to scan, bag, and pay for their purchases without human assistance, including but not limited to fixed self-checkout, scan-and-go self-checkout, or mobile self-checkout. “Self-Service Checkout station” means a station at a fixed location within a Drug Retail Establishment and/or Food Retail Establishment at which a customer can engage in a Self-Service Checkout for the customer’s purchases.
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Ordinance No. 2026-xx Page 3 of 6
9-173 Self-Service Checkout requirement.
A. Drug Retail Establishments and Food Retail Establishments that provide Self - Service Checkout options shall provide at least one Non- Self-Service Checkout station staffed by an Employee that is available during the times that a S elf-Service Checkout option is available to customers, and Drug Retail Establishments and Food Retail Establishments shall establish, implement, and advertise limits to Self-Service Checkout to purchases of no more than fifteen (15) items.
B. Drug Retail E stablishments and Food Retail Establishments shall have an established workforce policy that prohibits customers from using a Self-Service Checkout station to purchase either of the following:
1. Items that require customers to provide a form of identification, including, but not limited to, alcohol and tobacco products.
2. Items subject to special theft-deterrent measures that are affixed to the item, including, but not limited to, electronic article surveillance, ink, or other tags, or items placed in locked cabinets, that require the intervention of an Employee to remove them before purchase.
C. Drug Retail Establishments and Food Retail Establishments shall notify the public of this Ordinance by prominently posting signage in a location accessible to customers, which includes either a link or QR code to the City of Costa Mesa website regarding this Ordinance, a summary of the public’s rights under this Ordinance, a physical and/or email address to which notifications of violations of this Ordinance may be delivered, and the enforcement options available to the public pursuant to this Article. Failure to have and/or maintain an address pursuant to this section shall waive a Drug and/or Food Retail Establishment’s ability to assert lack of notice in any civil action brought pursuant to this Ordinance.
D. Self-Service Checkout stations shall be located to enable observation and surveillance from both employees of Drug Retail Establishments and Food Retail Establishments and local law enforcement.
9-174 Self-Service Checkout staffing requirements.
A. Drug Retail Establishments and Food Retail Establishments that provide Self - Service Checkout options shall assign at least one (1) Employee to supervise the Self- 175
Ordinance No. 2026-xx Page 4 of 6
Service Checkout operation at all times that Self-Service Checkout is in operation during business hours. The assigned Employee shall have no other work responsibilities that would interfere with their ability to maintain direct visual inspection and surveillance of the Self-Service Checkout operations.
B. In the event a Drug Retail Establishment or Food Retail Establishment operates two (2) or more Self -Service Checkout stations, the Drug Retail Establishment or Food Retail Establishment shall maintain a staffing ratio of at least one (1) Employee for every three (3) Self-Service Checkout Stations (1:3 ratio). The manner in which this standard is implemented may take into account operational and logistical feasibility. 9-175 Enforcement.
A. A Customer or Employee must notify on- site management verbally or in writing and notify a Drug Retail Establishment or Food Retail Establishment in writing at the address established pursuant to section 9- 173(c) of a violation, after which the establishment shall have seven calendar days from the date of notification to cure the violation. If the violation is not cured, a Customer or Employee of a Drug Retail Establishment or Food Retail Establishment may bring a private right of action in the Superior Court of the State of California against a Drug Retai l Establishment or Food Retail Establishment for violating this Article and, upon prevailing, may be awarded:
1. A civil penalty for each violation of this Article of one hundred dollars ($100) for each employee of the Drug Retail Establishment or Food Retail Establishment. Each day the violation is not cured, the penalty shall increase an additional one hundred dollars ($100) per employee per day up to a limit of one thousand dollars ($1,000) per employee per day for each day in which the violation remains uncured.
2. Attorneys’ fees and costs.
9-176 Retaliatory action prohibited.
No Drug Retail Establishment or Food Retail Establishment shall terminate, reduce in compensation, or otherwise discriminate against any Employee for seek ing to enforce their rights under this Article by any lawful means, for participating in proceedings related to this Article, for opposing any practice proscribed by this Article , or for otherwise asserting rights under this Article.
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Section 2. Inconsist encies. Any provision of the Costa Mesa Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance.
Section 3. S everability. If any chapter, article, section, subsection, subdivision, sentence, clause, phrase, 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 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 4. E
ffective Date. This Ordinance shall take effect thirty (30) days after its final passage.
Section 5. Ce rtification. 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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PASSED AND ADOPTED this ___day of _____, 2026.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________ Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing Ordinance No. 2026-xx was duly introduced for first reading at a regular meeting of the City Council held on the 20th day of January 2026, and that thereafter, said Ordinance was duly passed and adopted at a regular meeting of the City Council held on the 3rd day of February, 2026, 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 4th day of February, 2026.
__________________________
Brenda Green, City Clerk
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-102 Meeting Date: 2/3/2026
TITLE:
CLIMATE ACTION AND ADAPTATION PLAN (CAAP) STATUS AND OUTREACH UPDATE DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES
DEPARTMENT/PLANNING DIVISION
PRESENTED BY: AMBER GREGG, PLANNING CONSULTANT, AND ANNA
MCGILL, PLANNING AND SUSTAINABLE DEVELOPMENT MANAGER
CONTACT INFORMATION: AMBER GREGG, PLANNING CONSULTANT,
[email protected]
RECOMMENDATION:
Staff recommends the City Council receive the presentation, provide feedback, and file this report.
179
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 26-102 Meeting Date: 02/03/2026
TITLE: CLIMATE ACTION AND ADAPTATION PLAN (CAAP) STATUS AND OUTREACH UPDATE
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING
DIVISION
PRESENTED BY: AMBER GREGG, PLANNING CONSULTANT, AND ANNA MCGILL, PLANNING
MANAGER (ADVANCE PLANNING)
CONTACT INFORMATION: AMBER GREGG, PLANNING CONSULTANT, [email protected]
RECOMMENDATION:
Staff recommends the City Council receive the presentation, provide feedback, and file this report.
BACKGROUND:
Purpose of the Climate Action and Adaptation Plan
The City is developing a Climate Action and Adaptation Plan (CAAP) to establish a comprehensive, long-term strategy to reduce greenhouse gas (GHG) emissions and prepare Costa Mesa for the impacts of climate change. The CAAP supports the City Council’s goal to Advance Environmenta l Sustainability and Climate Resiliency and aligns with state mandates and best practices for local climate planning.
The CAAP will provide multiple community benefits, including:
Environmental sustainability: Establishing measurable GHG reduction target s and actions aligned with State climate goals.
Public health benefits: Improving air quality, reducing extreme heat impacts, and supporting active and healthy communities.
Emergency preparedness and resilience: Identifying climate -related vulnerabilities and strategies to reduce risk from extreme heat, drought, flooding, wildfire smoke, and other climate hazards.
Economic benefits: Supporting cost savings, energy efficiency, workforce development, and economic competitiveness.
Grant readiness: An adopted CAAP strengthens the City’s competitiveness for state and federal sustainability and resilience grants by demonstrating clear climate goals, documented need, and readiness to implement projects . Many funding programs prioritize or require consistency with an adopted climate or sustainability plan, allowing Costa Mesa to respond more quickly and 180
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competitively to grant opportunities. Cities across California have used grant funding to advance sustainability-related capital projects and policy initiatives ali gned with climate plans, including energy efficiency upgrades, building and fleet electrification, active transportation improvements, EV charging infrastructure, urban greening, and climate resilience projects. Strategic Roadmap for Decision-Making: The CAAP provides City decision-makers with a clear roadmap of sustainability initiatives and investment opportunities, allowing actions to be prioritized, coordinated, and implemented in an organized and cost -effective manner. This approach helps align policy decisions, capital investments, and funding opportunities while maximizing fiscal efficiency.
Project Timeline
Environmental sustainability and climate resilience was identified as a City Council core value and goal as part of the City Council ’s Goals and Objectives Strategic Plan. Development of a CAAP was included in the five-year Capital Improvement Project (CIP) in the 2022-2023 fiscal year. Following this direction, the City released a Request for Proposals in August 2023 and selected Dudek as the consultant team to assist with development of Costa Mesa’s first Climate Action and Adaptation Plan.
The proposal was approved by the City Council on October 1 5, 2024 , and p roject work formally commenced following City Council approval of the professional services agreement in December 2024.
Links to the October 15, 2024, staff report are provided below:
City Council Staff Report, October 15, 2024:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6891884&GUID=23ED8B9D-86C9-460B- B0C6-0C976B6B7B60
City Council Meeting Minutes, October 15, 2024:
https://costamesa.legistar.com/View.ashx?WillM=M&ID=1213774&GUID=7D61BBF0-8744-45F4- 9F19-62970E201108
The project i s currently progressing through the technical analysis and stakeholder engagement phases, consistent with the approved scope of work and schedule , with completion happening later this year.
PROJECT PROGRESSION
Tasks Overview
The CAAP is being developed through a structured, multi-phase process that includes technical analysis, policy evaluation, and extensive community and stakeholder engagement. Key tasks completed, or near completion, to date include:
Data Collection - Collection and organization of extensive data from multiple sources, including utilities, City departments, regional agencies, and external partners, to establish a defensible technical foundation for the CAAP. This effort includes reviewing data availability over a two-year time period from 2022 to 2023, coordinating data requests, and resolving gaps or privacy limitations.
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Review of Existing Plans, Policies, and Programs - Comprehensive review of the City’s General Plan, Municipal Code, sustainability reports, transportation plans, hazard mitigation documents, and other relevant local and regional plans to ensure the CAAP aligns with existing policy direction and identifies opportunities for integration and updates.
GHG Emissions Inventory and Future Projections - Development of a detailed greenhouse gas emissions inventory for both community -wide activities and municipal operations, using utility, transportation, waste, water, and fleet data. This analysis establishes a baseline and evaluates future emissions scenarios , including d ensity increases from Neighborhoods Where We All Belong and FDC, to inform reduction targets and policy decisions.
Climate Vulnerability and Risk Assessment - Evaluation of climate-related risks such as extreme heat, drought, air quality, flooding, and other hazards using GIS data, regional studies, and local plans. This task identifies vulnerable populations, critical facilities, and infrastructure to inform targeted adaptation and resilience strategies.
Interdepartmental Coordination Across City Departments - Ongoing coordination with multiple City departments to gather data, validate assumptions, align policies, and identify feasible implementation actions. This collaboration supports shared ownership of the CAAP and integration into City operations and long-term planning efforts.
Community Outreach and Stakeholder Engagement - Design and implementation of a robust engagement program, including working group meetings, community events, surveys, and coordination with existing City activities. This effort ensures community perspectives, equity considerations, and stakeholder input are meaningfully incorporated into the CAAP.
Public Outreach and Input
Public engagement is a central component of the CAAP process. Outreach efforts to date have focused on raising awareness, gathering early input, and ensuring representation from a diverse range of community voices. Engagement activities include project web site updates, targeted outreach, social media posts, surveys, and facilitated discussions designed to inform future policy development.
Public outreach kicked off at the City’s 2025 Earth Day event with interactive activities to help residents of all ages share ideas and priorities for a sustainable Costa Mesa. A second event was held at the City’s Concerts in the Park, and staff also provided information at several pop-up events, including back to school night and coffee chats.
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Stakeholder Engagement
For purposes of the CAAP, external stakeholders include organizations and entities outside of City government that help shape, implement, or are affected by climate-related policies and actions. These stakeholders provide valuable insight into real-world conditions, operational considerations, and community priorities. Outreach efforts have included representatives from existing businesses and operations, land use and new development interests, local organizations and advocacy groups, and utility providers.
The City has convened both group and individual meetings with external stakeholders to gather targeted input throughout the CAAP development process. These meetings create opportunities to share perspectives, identify opportunities, and help shape climate strategies that are feasible, locally appropriate, and responsive to community needs.
For example, staff met with representatives of the Building Industry Association (BIA) to discuss how the development community can support climate strategies in a practical and cost-effective manner. These discussions informed the feasibility of potential measures related to building energy efficiency, electrification, and construction practices, while also providing insight into market conditions, implementation challenges, and alignment with state building standards and industry best practices. This collaborative approach helps ensure the CAAP’s recommendations are realistic, implementable, and supportive of both environmental goals and economic vitality.
In addition, staff will present the CAAP to students enrolled in the Coastline ROP Climate Sustainability Program in February, providing an opportunity to engage students who are actively studying climate change, renewable energy, and urban sustainability, and to incorporate youth perspectives while building awareness and long-term community stewardship around the City’s climate goals.
NEXT STEPS:
Policy Development
Based on completed technical analysis and stakeholder input, the CAAP is now transitioning into the policy development phase. This phase focuses on identifying the actions and strategies that will drive the majority of greenhouse gas (GHG) reductions while remaining feasible, equitable, and aligned with Costa Mesa’s operational and regulatory framework.
The table below summarizes the key policy topic areas and representative objectives that are anticipated to account for the majority of GHG reductions in the CAAP. These policy areas represent the most impactful opportunities for emissions reduction across sectors such as transportation, energy, buildings, waste, water, and urban lands. While these key objectives are expected to account for a significant portion of anticipated emissions reductions, the full CAAP will also include a b roader suite of complementary policies and best practices that support long -term sustainability, resilience, and climate preparedness.
Staff is presenting these draft policy areas to the City Council at this stage for informational purposes and to solicit early feedback on overall policy direction, implementation considerations, and the City’s long-term ability to support and carry out these actions. City Council input will help staff and the 183
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consultant refine policy approaches, calibrate levels of commitment, and ensure that recommended actions are realistic and aligned with community and City priorities.
TABLE 1 – Potential CAAP Key Policy Objectives
Sector Primary Objective What This Means
Transportation
Cleaner
Transportation
Increase electric vehicle use, expand charging
infrastructure, and reduce reliance on single-
occupancy vehicle trips.
Reduce Vehicle
Miles Traveled
(VMT)
Support walking, biking, transit, and land use
patterns that shorten daily trips.
Energy & Buildings
Electrify Buildings Transition buildings away from natural gas toward electric appliances and systems over time.
Improve Energy
Efficiency
Lower energy use in new and existing buildings
through efficiency upgrades and performance
improvements.
Decarbonize Energy
Supply
Increase use of renewable energy, such as solar
and clean electricity options.
Off-Road Equipment Electrify Equipment Transition landscaping, maintenance, and construction equipment to zero-emission
alternatives.
Water & Wastewater Reduce Water &
Energy Demand
Promote water efficiency, reuse, and conservation to
reduce energy use associated with water systems.
Solid Waste Reduce Landfill
Waste
Expand waste reduction, recycling, composting, and
material reuse programs.
Natural & Urban
Lands
Enhance Carbon
Sequestration
Expand urban greening, tree canopy, and nature-
based solutions that reduce heat and absorb carbon.
Policy and Implementation Framework
The CAAP is intended to function as a policy and implementation framework that identifies clear objectives for reducing greenhouse gas (GHG) emissions and improving climate resilience, while allowing flexibility in how those objectives are achieved. Rather than relying on a single implementation model, the CAAP will in clude a range of policy tools , recognizing that different actions may warrant different levels of commitment and enforcement.
Climate policies within the CAAP may be implemented through a spectrum of approaches, including:
Regulatory or mandated actions, particularly for municipal operations or future development; Incentive-based or encouraging policies that promote desired outcomes through programs, funding, or partnerships;
Voluntary and educational initiatives that support behavior change and community participation; and
Hybrid approach that combines regulatory, programmatic, and educational tools.
As part of policy development, staff and the consultant will evaluate how different policy approaches affect accountability, administrative effort, monitoring needs, and long -term effectiveness. Some 184
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policies may include clearly defined performance standards and reporting mechanisms, while others may prioritize flexibility and adaptability as technologies, funding sources, and best practices evolve.
The table below provides a comparison of different policy implementation approaches based on level of prescriptiveness, flexibility, and administrative commitment. While the types of actions may appear similar, more prescriptive or enforceable mechanisms ensure accou ntability and sustained emissions reductions, whereas flexible policies rely more heavily on incentives, voluntary participation, and programmatic support.
TABLE 2 – Policy Implementation Approaches in the CAAP
Topic More Prescriptive Policy
Approaches More Flexible Policy Approaches
Primary Role Establishes clear requirements to
ensure consistent GHG reductions
Provides a strategic roadmap supported by
programs and incentives
Implementation Tools Ordinances, standards, formal
requirements
Incentives, voluntary programs, partnerships,
education
Up-Front Effort Higher level of analysis,
documentation, and coordination Lower initial effort with phased implementation Flexibility Over Time Less flexible; updates may require formal amendments
More adaptable to evolving technology and
policy conditions
Monitoring & Reporting Defined tracking, reporting, and accountability mechanisms Monitoring may be scaled or program-based Consistency Across
Projects
Creates uniform expectations and
outcomes Allows tailored approaches based on context
Administrative
Commitment
Greater ongoing staffing and
oversight requirements More manageable within existing City capacity Risk Management Higher accountability tied to
measurable commitments
Lower exposure tied to programmatic and
voluntary actions
Grant & Funding
Alignment
Strong alignment with certain state
and regional funding programs
Continues to support grant competitiveness and
coordination
For additional information, Dudek, the City’s consultant, has developed a list of broad sample policies to reduce GHG in Costa Mesa, which are provided under Attachment 1. The examples show potential policies under prescriptive versus flexible approaches.
Relationship to Ongoing Environmental Review Efforts
Since the CAAP RFP was released, the City has also advanced two major environmental review efforts that include comprehensive GHG analysis: 1) the Neighborhoods Where We All Belong (NWWAB) rezoning initiative and 2) the Fairview Development Center (FDC) project. Both Environmental Impact Reports include detailed GHG inventories, reduction measures, and mitigation strategies that may provide opportunities for tiering or streamlined environmental review for future projects.
Staff is evaluating how these existing and ongoing environmental review efforts align with the CAAP, and whether they may already provide similar CEQA streamlining benefits without the additional administrative requirements associated with maintaining a CEQA-qualified CAAP. 185
Item #: 26-102 Meeting Date: 02/03/2025
Public Workshop and Public Review
Draft CAAP objectives and strategies will be vetted/reviewed with our internal stakeholder group and once refined, will be presented at a public workshop in Spring 2026. Additional opportunities for public review and comment will be provided prior to finalizing the plan for City Council consideration.
PUBLIC NOTICE:
There is no public notice requirement for the CAAP status and outreach update. However, the City provided the following informal notice:
The date and time of the update was posted on the project website. Information about the update was emailed to the effort’s interest list.
FISCAL REVIEW:
There is no fiscal impact with this action. The project has a budget of $ 500,000, of which $335,168 remains in the project balance at the time of the City Council hearing date. There is an available budget of $112,051 in the General Fund (Fund 101) and $223,117 in the Capital Improvement Fund (Fund 401).
CITY COUNCIL GOALS AND PRIORITIES:
This effort supports the City Council ’s goal to advance environmental sustainability and climate resiliency by developing a long-term framework to reduce greenhouse gas emissions, enhance climate preparedness, and protect community health and economic vitality.
CONCLUSION:
The Climate Action and Adaptation Plan is progressing as planned and continues to benefit from technical analysis, stakeholder collaboration, and community engagement. Staff welcomes City Council feedback on the project and looks forward to continued collaboration as the CAAP advances toward public review and adoption.
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ATTACHMENT 1
-1-
Policy Implementation Approaches in the CAAP
Introduction
The below table provides a comparison of different policy implementation approaches based on level of prescriptiveness, flexi bility, and administrative commitment. While the types of actions may appear similar, more prescriptive or enforceable mechanisms ensure accountability and sustained emissions reductions, whereas flexible policies rely more heavily on incentives, voluntary participation, and programmatic support.
City of Costa Mesa CAAP
Potential Top GHG Reduction Community-wide Objectives
Sector Objective Prescriptive Policy Example City Actions Available to Accomplish Objectives
How would a more flexible CAAP be different?
On-Road
Transportation
Transition to Electric
Vehicles
• Encourage the community to transition to electric
vehicles (EVs):
o City-led initiatives to provide EV charging
infrastructure in public areas
o Adopt an ordinance to require EV charging
infrastructure above code for new
development. Example: SFR: each DU
equipped with dedicated 208/240-volt branch
circuit or Level 2 EVSE/EVCS (EV charger);
Instead of adopting an ordinance to require EV
charging infrastructure above code, the City could
encourage or incentivize new development to
provide EV chargers, for example through permit
streamlining, providing technical assistance
and/or guides, etc.
Reduce VMT • Encourage the use of alternative modes of travel:
facilitate micromobility programs, require end-of-trip
bike facilities in new development, expand sidewalks,
install new bike lanes, etc.
• Reduce single-occupancy vehicle trips: require
commute trip reduction programs for large companies,
require rideshare/carpooling/vanpooling corporate
programs for large companies, promote employer
parking cash out
• Optimize land use to minimize commute distances:
update land use designations, zoning, or overlays to
Instead of requiring specific VMT reduction
measures through ordinances or development
standards, a non-qualified CAP would likely focus
on encouraging or supporting these strategies
rather than mandating them. For example, the City
could promote micromobility and active
transportation through outreach campaigns,
provide voluntary guidance for employers on
rideshare programs, or collaborate with transit
agencies to explore service improvements without
committing to enforceable actions. Land use
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-2-
Sector Objective Prescriptive Policy Example City Actions Available to Accomplish Objectives
How would a more flexible CAAP be different?
allow for higher density development to decrease travel distances
• Incentivize use of public transit community-wide: City- led development of mobility hubs, City provides
subsidized transit passes to city employees and
community members, partner with transit
organizations to expand transit coverage and improve
transit service
changes might be framed as aspirational actions
rather than codified requirements.
Energy and the
Built Environment
Electrify Buildings • For existing development, require the switch to appliances that utilize less emissions-intensive energy sources and/or the replacement of natural gas
appliances with electric alternatives during renovations • Adopt an electrification/GHG performance standard
ordinance for new development and large-scale
renovations
Instead of requiring electrification through
ordinances or performance standards for new
development and major renovations, a non-
qualified CAP would likely focus on voluntary
measures and incentives. For example, the City
could provide educational resources and
technical assistance to building owners, and offer
rebates or grants for electric appliance upgrades.
The plan might encourage electrification during
renovations rather than mandate it, and frame
actions as recommendations rather than
enforceable requirements.
Increase Building
Efficiency
• Facilitate energy audits for building owners to
understand possible energy efficiency upgrade options
• For renovations not requiring permits, incentivize
retrofits with energy-efficient upgrades
• Adopt an energy efficiency ordinance for new
development and large-scale renovations. Examples:
requirement of CALGreen voluntary measures as
mandatory, achievement of energy performance target
or energy budgets greater than statewide standards
• Adopt an energy efficiency ordinance for existing
buildings. Examples: requirement of owners of large
buildings to track and report whole-building energy use, periodic energy audits to identify and implement
Instead of adopting mandatory energy efficiency
ordinances or requiring building owners to track
and report energy use, a non-qualified CAP would
likely focus on voluntary programs and incentives.
For example, the City could provide educational
resources, promote energy audits, and offer
rebates or grants for efficiency upgrades.
Guidance on CALGreen standards or energy
performance targets might be presented as
recommendations rather than enforceable
requirements. Programs like cool roof and
pavement initiatives would still be encouraged
through outreach and partnerships.
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-3-
Sector Objective Prescriptive Policy Example City Actions Available to Accomplish Objectives
How would a more flexible CAAP be different?
efficiency upgrades, and set targets to reduce energy
consumption (e.g., 2% reduction annually).
• Cool roof and pavement programs; City provides
guides, toolkits, and/or technical assistance to support cool roof and pavement programs, partner with utilities to support with rebates (e.g., Cool Communities
Project sponsored by CEC)
Decarbonize Energy
Use
• Increase electricity generation from on-site renewable energy (e.g., solar photovoltaic systems): streamline
permitting processes, provide technical assistance for
PV and battery systems, potentially require installation of rooftop solar above code through ordinance
• Automatically enroll community members in electricity options that provide 100% renewably sourced energy
(enter into CCA agreement), with opt out options
Instead of requiring installation of rooftop solar
above code or automatically enrolling community
members in electricity options that provide 100%
renewably sourced energy, a non-qualified CAP
would likely focus on voluntary participation and
supportive measures that encourage
decarbonization. For example, the City could
provide educational resources and technical
assistance for solar and battery systems, promote
streamlined permitting, and encourage residents
to opt into renewable energy programs rather than
automatic enrollment.
Off-Road
Equipment
Electrify Off-Road
Equipment
• Increase electric and zero-emission off-road and
landscaping equipment adoption: adopt ZEV
landscaping equipment ordinance, permit streamlining
for contractors with ZEV fleets
Instead of adopting an ordinance requiring zero-
emission landscaping equipment, a non-qualified
CAP would likely focus on voluntary adoption and
supportive measures that encourage the switch to
electric equipment. For example, the City could
provide educational resources, promote incentive
programs or rebates for electric equipment, and
encourage contractors to transition through
outreach and recognition programs rather than
enforceable requirements.
Water and
Wastewater
Reduce Water
Consumption
• Require use of low-flow appliances and drought-
tolerant landscaping in new development and
renovations
• Encourage or require water reuse and recycling (e.g., graywater, rain barrels, recycled water)
Instead of requiring the use of low-flow appliances
and drought-tolerant landscaping in new
development or mandating water reuse and
recycling systems, a non-qualified CAP would
likely focus on voluntary adoption and incentives.
For example, the City could provide educational
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Sector Objective Prescriptive Policy Example City Actions Available to Accomplish Objectives
How would a more flexible CAAP be different?
resources, promote water conservation through
outreach campaigns, and offer rebates for
installing low-flow fixtures or rainwater harvesting
systems.
Solid Waste Reduce Waste to
Landfills
• Reduce the generation of waste (e.g., through reuse
and repair programs) and diverting material (e.g.,
recycling and composting programs)
Similar or the same as qualified CAAP actions.
Natural and Urban
Lands
Enhance Carbon
Sequestration
• Require nature-based solutions in new and existing
developments as appropriate (e.g., bioswales, tree-
shaded parking, green roofs)
• Adopt tree replacement ordinance
• Install community gardens, rain gardens, urban farms, etc. by requiring large new developments (e.g., 200+
residential units and 250k+ SF non-residential) to
participate and City-led efforts
Instead of requiring nature-based solutions in new
and existing developments or mandating
participation in tree replacement and community
garden programs, a non-qualified CAP would likely
focus on voluntary efforts and incentives. For
example, the City could encourage developers to
incorporate green infrastructure through design
guidelines, promote tree planting and urban
greening through outreach campaigns, and offer
grants or recognition programs for projects that
include bioswales, rain gardens, or green roofs.
190
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-108 Meeting Date: 2/3/2026
TITLE:
OPERATIONS AGREEMENT FOR LIONS PARK CAFE
DEPARTMENT: PARKS AND COMMUNITY SERVICES
PRESENTED BY: BRIAN GRUNER, PARKS AND COMMUNITY SERVICES
DIRECTOR
CONTACT INFORMATION: BRIAN GRUNER, PARKS AND COMMUNITY SERVICES, (714) 754-5009
RECOMMENDATION:
Staff recommends the City Council:
1. Award an operation agreement to Neat Coffee for the Management and Operation of the Lions Park Cafe.
2. Authorize the City Manager or her designee to negotiate the terms and conditions for the financial share between the City and Neat Coffee.
3. Authorize the City Manager and the City Clerk to execute the operating agreement and future amendments to the agreement (Attachment 1) within City Council authorized limits.
4. Appropriate net revenues as received by the City that comply with the agreement of 50% net revenue to the OC Public Library for a net neutral impact.
BACKGROUND:
Lions Park is an active campus that is home to the Donald Dungan Library, Norma Hertzog Community Center, Lions Park Event Lawn, Airplane Playground, Downtown Recreation Center, and Historical Society. The newly constructed Café Kiosk is approximately 1,100 SF, including new decking, where Lions Park campus visitors will be able to enjoy snacks and beverages al fresco.
The City received $1.2 million in American Rescue Plan Act funding through the County of Orange Board of Supervisors Office of Fifth District Supervisor Katrina Foley, to complete the unfinished café component of the Lions Park Project (Phase III). In addition, the City Council allocated an additional $1.1 million from the Capital Improvement Fund. In February 2023, the City entered into an MOU with the County of Orange executing a revenue sharing agreement that provides funding for Orange County Public Libraries and maintenance at Mesa Verde Library and Donald Dungan Library (Attachment 2).
With the completion of Café Kiosk, the City is now seeking a viable café operator through a
191
File #: 26-108 Meeting Date: 2/3/2026
With the completion of Café Kiosk, the City is now seeking a viable café operator through a competitive Request For Proposals (RFP) process to ensure the selection of a professional and experienced local café operator.
ANALYSIS:
The Lions Park Café is intended to be a community amenity for both residents and visitors of the Lions Park campus, including the Donald Dungan Library, Lions Lawn, Airplane Playground, Downtown Recreation Center, Norma Hertzog Community Center and surrounding community facilities. The Café will serve a diverse clientele; therefore, the Café must meet community needs by providing a quality facility and ambience, a variety of cafe options, and experienced staff that can successfully manage the facility. The City’s specific objectives for the selected vendor focus on providing high-quality, gourmet concession cafe services with dedicated full-time staff that can run the café reliably and professionally.
The Finance Department’sPurchasing Division issued an RFP on October 2, 2025, in accordance with the City of Costa Mesa Municipal Code Chapter V. Finance, Article 2. Section 2-167 Formal Bidding Process. Purchasing staff has been the main contact for communication with all bidders throughout the RFP process, hosting a pre-bid meeting, answering questions via Planetbids, and requesting clarifying questions from the bidders to ensure proposals were evaluated in a fair, transparent, and equitable manner.
The RFP closed on October 22, 2025, and a total of two (2) proposals were submitted in accordance with the RFP guidelines. The proposals were reviewed to ensure each one met the criteria identified in the scope of work in the RFP. After this initial review, a rating panel consisting of management staff from the Public Works and Parks and Community Services Departments reviewed and evaluated proposals independently to assess qualifications and experience to address the City’s needs.
Proposals were screened for compliance with the City’s RFP process and were scored on the following qualitative factors:
· Qualifications of the Proposer/Organization and Key Personnel · Approach to providing the requested scope of services · Cost Sharing
The procurement process also included interviews, held on December 10, 2025. Each vendor had the opportunity to provide additional clarifying operational information and ensure a more direct comparison of the proposals and their operational capabilities, backing, and history. The two proposing vendors presented their business models to the evaluation committee, showcased what makes them the best operator for the City’sLions Park Café, and presented their best and final proposal.
The evaluation committee was asked to score the presentations, separate from the proposal scoring.
192
File #: 26-108 Meeting Date: 2/3/2026
The evaluation committee was asked to score the presentations, separate from the proposal scoring.
Ratings were given for the following categories:
· Grasp of the project
· Approach
· Qualifications and Experience
· Communication
· Quality of Presentation
After an extensive procurement process, it was determined that Neat Coffee possessed the best qualifications and experience to operate the City’s Lions Park Café.
As a locally owned café business founded in 2015, Neat Coffee has spent the past decade building meaningful relationships with Costa Mesa residents and establishing itself as a gathering place where neighbors meet, ideas are shared, and community thrives.
Neat’sproposal demonstrated their commitment to providing high-quality, affordable café services while serving as a collaborative partner to the City. They will offer carefully sourced coffee, thoughtfully prepared food, and a welcoming atmosphere that serves all members of our community.
Further, they plan to offer pricing set below market rate to ensure accessibility within this public space and will implement discount programs for library cardholders. Neat Coffee stood out for these factors, as well as for their highly qualified team and extensive experience in café operations.
Staff prepared a recommendation to bring forward to City Council the award of an operator agreement to Neat Coffee.
ALTERNATIVES:
The City Council may choose to reject the staff recommendation to award an agreement to Neat Coffee and direct staff to work with a different operator; or reject all proposals and start the procurement process again.
FISCAL REVIEW:
Upon Council approval to move forward with Neat Coffee, City staff will begin to negotiate the terms and conditions of the agreement, as well as the City’sfinancial share. The Lions Park Café was funded through a combination of $1.2 million provided by the County of Orange Board of Supervisors’ Office of Fifth District Supervisor Katrina Foley and $1.1 million in City Capital Funds, for a total of $2.3 million. The City agreed to share revenue for the Café with the OC Public Library. The City will deposit the agreed upon amounts and provide 50% of net revenue payments to the OC Public Library.
LEGAL REVIEW:
The City Attorney's Office has reviewed this staff report.
193
File #: 26-108 Meeting Date: 2/3/2026
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the following City Council Goal:
· Strengthen the Public’s Safety and Improve the Quality of Life CONCLUSION:
Staff recommends the City Council:
1. Award an operation agreement to Neat Coffee for the Management and Operation of the Lions Park Cafe.
2. Authorize the City Manager or her designee to negotiate the terms and conditions for the financial share between the City and Neat Coffee.
3. Authorize the City Manager and the City Clerk to execute the operating agreement and future amendments to the agreement within City Council authorized limits.
4. Appropriate net revenues as received by the City that comply with the agreement of 50% net revenue to the OC Public Library for a net neutral impact.
194
1 CITY OF COSTA MESA
CONCESSION AGREEMENT
This C
oncession Agreement (“AGREEMENT”) is made and entered into as of February 3, 2026 (“the EFFECTIVE DATE”), by and between the City of Costa Mesa, a California municipal corporation (“CITY”), and NEAT COFFEE, a California limited liability company (“CONCESSIONAIRE”).
RECITALS
A. CITY is seeking a public/private partnership for the full operation of the City’s Café Kiosk at Lions Park located at 1851 Park Avenue, (Exhibit “A”) to provide high- quality, gourmet concession café services with full -time staff, with the exclusive right to sell coffee, baked goods and like items.
B. Lions
Park is an active campus that is home to the Donald Dungan Library, Norma Hertzog Community Center, Lions Park Event Lawn, Airplane Playground, Downtown Recreation Center, and the Historical Society. The newly constructed Café Kiosk is approximately 1,100 square feet including new decking, where Lions Park campus visitors can enjoy snacks and beverages al fresco.
C. CIT
Y issued a Request for Proposal (RFP 26-05, Exhibit “B”) on October 1, 2025, seeking Proposals from qualified applicant s for the Lions Park Café Concession Services, for the Parks and Community Services Department. CONCESSIONAIRE timely submitted a proposal to RFP 26- 05 (Exhibit “C”) and CITY desires to award the Concession to CONCESSIONAIRE.
D. The CI
TY and CONCESSIONAIRE desire to enter into this AGREEMENT for CONCESSIONAIRE to operat e the kiosk at Lions Park Café for the Parks and Community Services Department, subject to the terms and conditions of th is AGREEMENT.
AGREEMENT
1.0 PREMISES
CONCESSIONAIRE shall be allowed to operate the premises described in Exhibit “A,” subject to the terms and conditions of this AGREEMENT. CONCESSIONAIRE will manage and operate the City’s Café Kiosk at Lions Park, located at 1851 Park Avenue, Costa Mesa, CA which is an approximately 1,100 SF facility, where Lions Park campus visitors can enjoy snacks and beverages al fresco while visiting the location (Exhibit “A”).
2.0 TERM AND OPTION
2.1. Term. The term of this AGREEMENT is from the EFFECTIVE DATE of this AGREEMENT and shall continue for a term of three (3) years.
2.2. Period of Extension. CITY may, at CITY’s option, extend the term of this AGREEMENT for a maximum of one (1) three (3)-year extension.
ATTACHMENT 1
195
2 3.0 NATURE OF CONCESSION
CONCESSIONAIRE agrees to comply with all the following conditions:
3.1. Hours of Operation. CONCESSIONAIRE must at all times maintain a written schedule, delineating the operating hours of the Lions Park Cafe. The hours of operation shall be Monday through Sunday from 7:00 a.m. to 5:00 p.m. consistent with CONCESSIONAIRE’s Proposal, attached as Exhibit “C.”
3.2. Revenue Sharing. CONCESSIONAIRE will pay the CITY three (3%) of all gross revenue generated by café operations. Payment will be submitted by the 15 th of each month following the month of sales. Payments will be accompanied by the required gross receipts report and monthly revenue/expense statement pursuant to Section G of the RFP. Payments made after the 15
th of every month but prior to the last day of the
month shall incur a five (5) percent penalty. Payments received after a 30- day delinquency shall incur a ten (10) percent penalty per late week. Multiple late pay ments may result in a breach of contract and termination of Concession Agreement with CONCESSIONAIRE pursuant to the terms outlined in the RFP (Exhibit “B”) and consented to by CONCESSIONAIRE (Exhibit “C”).
3.3. Capital Improvements and Installation of Equipment. CONCESSIONAIRE agrees to make the following capital improvements at its own expense and in accordance with Section 7 of this AGREEMENT. Unless otherwise agreed to in writing by CITY and CONCESSIONAIRE, all improvements made must permanently remain at the Lions Park Cafe and become property of the City of Costa Mesa. The following identifies the capital improvements needed and that will be conducted by CONCESSIONAIRE:
(a) CONCESSIONAIRE must provide all necessary equipment, not provided by CITY, and make the facilities fully operational as a café.
(b) CITY will install a floor drain in the front service area beneath the proposed location of the expresso machine.
(c) CITY will install water line plumbing to provide filtered water connections for the expresso machine and the batch crew coffee machine.
(d) CITY shall cooperate with CONCESSIONAIRE in the installation of exterior signage that incorporates the “Neat Coffee” branding alongside the “Café Mes a” name, subject to City approval of all designs and placements.
(e) All equipment, furnishings and installations purchased by CONCESSIONAIRE shall be new, of modern design, and high- quality construction. All such CONCESSIONAIRE expenditure must 196
3 be pre- approved in writing by CITY before any purchase and/or installation is made. Purchased equipment will remain the property of the CONCESSIONAIRE during the concession agreement term and is subject to sale to CITY at the end of the concession agreement’s term (minus depreciation costs). CONCESSIONAIRE is solely responsible for proper maintenance and repair of said equipment
3.4. Operation of Facilities & Regulatory Compliance. CONCESSIONAIRE will operate and manage the facilities in a competent and efficient manner at least comparable to other well-managed café facilities of a similar type in the Greater Orange County vicinity.
CONCESSIONAIRE will be solely responsible for: 1) all federal, state, and local tax obligations; 2) business license fees for the café location; 3) health department permit fees; 4) required insurance premiums; and 5) any other licenses, permits, or regulatory fees necessary for legal operation.
CONCESSIONAIRE shall offer non-alcoholic beverages and food items for sale to the patrons of the CITY and the general public. Types of products may include, but are not limited to: Hot beverages, hot and iced coffee drinks, teas, sodas, bottled water and juices, hot and iced chocolate drinks, sandwich products, snacks, nuts pastries, cookies, bagels, panini, biscotti, and fresh fruit.
CONCESSIONAIRE shall not offer tobacco , alcoholic products, or chewing gum at any time. CONCESSIONAIRE shall not sell beverages in glass containers.
CONCESSIONAIRE must provide the following: Napkins, serve ware, and beverage containers. Any disposable napkins, serve ware, or beverage containers utilized in the café shall be recyclable or compostable.
Commencement and completion of work shall be performed in strict compliance with CONCESSIONAIRE’s Proposal (Exhibit “C”) , unless otherwise agreed to in writing by the parties. The Project Schedule may be amended by mutual agreement of the parties. Failure to commence the work in a timely manner and/or diligently pursue work to completion may be grounds for termination of this Agreement.
3.5. Drug-Free Workplace Policy. CONCESSIONAIRE shall provide a drug-free workplace by complying with all provisions set forth in City’s Council Policy 100- 5, attached hereto as Exhibit “D” and incorporated herein. C ONCESSIONAIRE’s failure to conform to the requirements set forth in Council Policy 100 -5 shall constitute a material breach of this Agreement and shall be cause for immediate termination of this Agreement by City.
In addition to the operation requirements contained herein, CONCESSIONAIRE shall comply with all operation, equipment and use of premises requirements specified 197
4 in RFP 26-05 (attached as Exhibit “B”) and consistent with CONCESSIONAIRE’s proposal (attached as Exhibit “C”).
3.6. Maintenance of Facilities and Facility Management . CONCESSIONAIRE will maintain the concession area and surrounding outdoor seating to the highest standards and perform all repairs to the café facility, including maintenance of equipment, as well as trash removal.
Concession cleanliness standards shall include: 1) multiple daily cleaning sweeps of service areas, floors, and equipment; 2) immediate attention to spills or cleanliness issues; 3) daily thorough cleaning of all surfaces, fixtures, and equipment at close of business; 4) pickup and proper disposal of all trash and debris into City -provider trash receptacles; 5) weekly deep cleaning procedures; 6) proper maintenance of all equipment according to manufacturer specifications; and 7) prompt reporting to City facilities staff or any maintenance needs beyond the capabilities of CONCESSIONAIRE.
CONCESSIONAIRE shall provide and maintain: 1) the commercial expresso machine; 2) coffee grinders; 3) batch brew coffee system; 4) freezer for acai bowls (to be scooped, not blended); 5) small wares and service items; 6) point-of-sale system; and 7) outdoor seating furniture and tables for deck area.
Facility Access and Security. CONCESSIONAIRE will cooperate with CITY staff to establish secure key control protocols for the café, storage areas, and any assigned gates or doors. Keys must be safeguarded and never duplicated without CITY approval.
CONCESSIONAIRE’s keyholders will be responsible for opening and securing the facility daily, with backup procedures (approved by CITY) in place of staff absences.
Utilities and Communications. CONCESSIONAIRE will pay all utility costs associated with the café operation, including water, electricity, phone, and internet service. CONCESSIONAIRE shall establish its own business telephone line and use their own company mailing address for business correspondence, not CITY contact information.
In addition to the maintenance requirements contained herein, CONCESSIONAIRE shall comply with all operation, equipment and use of premises requirements specified in RFP 26-05 (attached as Exhibit “B”) and consistent with CONCESSIONAIRE’s proposal (attached as Exhibit “C”).
3.7. Personnel. CONCESSIONAIRE will at all times retain active, qualified, competent, and experienced personnel to supervise CONCESSIONAIRE’s operations at the premises and to represent and act for CONCESSIONAIRE at the premises. (a) CONCESSIONAIRE agrees that in order to ensure a safe environment for patrons of the café and CITY employees at the site, CONCESSIONAIRE will conduct criminal background checks at CONCESSIONAIRE’s expense on all employees, or volunteers, 18 198
5 years and older. CONCESSIONAIRE also agrees that failure of an individual to submit to a required criminal background check will result in prohibiting said individual from employment.
CONCESSIONAIRE agrees to make every effort to prevent an individual with a history of dangerous criminal behavior from having contact with children or vulnerable adults who are patrons at the café.
(b) C ONCESSIONAIRE must require its attendants and employees to be dressed properly, clean, courteous, efficient, and neat in appearance at all times.
(c) CONCESSIONAIRE must maintain a close check of attendants and employees to ensure the maintenance of a high standard of service to the public. CONCESSIONAIRE must replace any employee for good cause pursuant to applicable federal and state laws.
(d) CONCESSIONAIRE’s staff training program , which shall be documented, shall include: 1) CONCESSIONAIRE service
philosophy and customer interactive standards; 2) Expresso preparation and coffee brewing techniques; 3) food safety and sanitation practices; 4) point -of-sale system operation and cash handling procedures; 5) knowledge of menu items, ingredients, and accommodation of dietary needs; 6) sustainability practices including proper sorting of recyclables and compostables; 7) emergency procedures and protocols; 8) Orange County Health Department compliance requirements.
(e) CONCESSIONAIRE’s Safety Training Plan must address both employee and public safety as follows: 1) All staff will be trained in safe equipment operation, including proper use of expresso machines, grinders, blenders, and warming equipment ; 2) slip, trip, and fall hazard prevention through immediate spill cleanup and proper floor maintenance; 3) burn and cut prevention protocols; 4) proper lifting techniques for inventory handling; 5) food allergen awareness and prevention of cross -contamination; 6) emergency contact information and procedures posted in staff areas; 7) First aid kit maintained on premises; 8) regular safety meetings to review procedures and address concerns; and 9) workers’ compensation insurance maintained as required by California law.
3.8. Cost of Operation. CONCESSIONAIRE will assume the full cost of operating the facility, including staff, insurance, electricity, telephone/internet access, custodial, minor building and facility maintenance (under $500 per incident) and upkeep. 199
6 3.9. Common Area. CITY will maintain the common area outside the café facility, including the restrooms, walkway, walkway lighting, and landscaping. CITY will maintain landscaping in the common area, and to procure trash bags for trash cans on a daily basis.
3.10. Coordination of Concessions. CONCESSIONAIRE will be responsible for the coordination of any concessions within the facility. CONCESSIONAIRE must obtain the approval of the Director of Community Services prior to the installation of any vending machine(s) on the premises. If approval if granted by the Director of Community Services, the installation and maintenance of aforementioned vending machine(s) will be done at the cost of CONCESSIONAIRE.
3.11. Publicity and Programs. CONCESSIONAIRE is responsible for the marketing of its programs and facility and all costs associated with said marketing, with the exception of the C ITY's Bulletin of Activities, Class Schedule & Programs Guide.
CONCESSIONAIRE will be notified of the due dates for all information contained in the Guide and will be expected to submit information as required to meet the CITY ’s publication schedule.
3.12. Prices. A schedule of prices charged for all goods and/or services supplied to the public on the premises must also be maintained. All prices charged for goods and/or services supplied to the public must be fair and reasonable, based upon the following considerations:
(a) CITY’s primary purpose for entering into this AGREEMENT is to promote development of, and make available, drinks and refreshments services for the benefit of the public; and
(b) CONCESSIONAIRE will be entitled to charge prices for the goods, and services offered in accordance with this AGREEMENT that are reasonable and consistent with market prices charged but other competing and/or comparable businesses in the greater Orange County vicinity provided.
(c) A specific discount program will include: 1) a library cardholder discount (presented at the time of purchase; 2) senior discount; 3) Cost Mesa city staff discount; 4) special event pricing for city -hosted events; and 5) story time specials (discounted parent/child combos coordinated with library programming.
3.13. Financial Management and Reporting. CONCESSIONAIRE shall establish a cloud-based point of sale system that: 1) records all transactions with automatic sales totals and transaction counters that cannot be reset; 2) issues sequentially numbered customer receipts for all transactions; 3) maintains detailed electronic records accessible to CITY auditors; 4) provides real -time reporting capabilities; 5) enables CITY staff to access financial data as specified in the concession agreement. In the event of system failure, CONCESSIONAIRE shall immediately implement manual record -keeping using 200
7 pre-numbered receipt books and will record all transactions until system functionality is restored. Under no circumstances shall CONCESSIONAIRE conduct unrecorded sales. (a) Cash Handling. While CONCESSIONAIRE anticipates that the majority of transactions will be electronic (credit/debit cards, mobile payments), we will accept cash up to the specified $30 single- purchase limit, with amounts exceeding this limit processed via electronic payment.
CONCESSIONAIRE’S detailed cash handling procedures shall include: 1) opening and closing cash counts with documentation; 2) cash drawer limits to minimize loss exposure; 3) dual -employee counts for all cash transactions over specified thresholds; 4) daily reconciliation of cash receipts against register accounts; 5) secure transport and bank deposit procedures; and 6) documentation trail for all cash transactions.
(b) Separate Accounting. As required by the concession agreement, CONCESSIONAIRE will establish and maintain a separate bank account dedicated exclusively to Lions Park Café operations. All revenue from the case shall be deposited into this account, and all café- related expenses shall be paid from this account. This separation ensures clean accounting and facilities audit and verification of gross receipts.
(c) In addition to the accounting requirements contained herein, CONCESSIONAIRE shall comply with the Payment, Reporting and Accounting requirements specified in Section G of the RFP 26-05 (attached as Exhibit “ B”) and consistent with CONCESSIONAIRE’S proposal (attached as Exhibit “C”).
(d) Monthly Reporting requirement. By the 15
th of each month,
CONCESSIONARE shall provide the CITY: 1) payment of the monthly fee as specified in the revenue- sharing proposal (attached as Exhibit “C”); 2) Cash basis monthly gross receipts report showing the total sales and payment calculations; and 3) any notes or explanations of unusual circumstances or variations from typical operations.
(e) Annual Reporting requirements: Within 60 days of each contract anniversary, CONCESSIONAIRE shall provide the CITY: 1) an annual profit and loss statement prepared by a certified public accountant; 2) balance sheet in a form acceptable to the City Manager or designee; 3) statistical summary of operations including patron counts, popular items, seasonal trends; and 4) narrative report on café’s contribution to the Lions Park campus community.
(f) Audit Cooperation. CONCESSIONAIRE understands and agrees that the CITY may audit its books and records at any time during the contract term and for four years following the termination of the contract .
CONCESSIONAIRE agrees to: 1) maintain all required documentation including general ledgers, journals, vouchers, checks, tickets, bank 201
8 statements, tax returns, and daily sales records; 2) provide full access to all accounting records at reasonable times; 3) cooperate completely with CITY auditors/independent accounting firms contracted by the CITY; 4) ensure all records are organized, complete, and readily accessible; and 5) treat city requests for confidential information (such as tax returns) with appropriate discretion. CONCESSIONAIRE acknowledges that if any audit reveals under-reporting of gross receipts resulting in loss of revenue to the CITY exceeding 2% of amounts due, CONCESSIONAIRE shall be responsible for applicable penalties, back payments, and potentially liquidated damages as specified in the agreement.
4.0 INDEPENDENT CONTRACTOR
In its performance hereunder, CONCESSIONAIRE shall at all times be deemed an independent contractor and not an agent or employee of the CITY.
CONCESSIONAIRE, its employees, agents, subcontractors, and volunteers shall have no power to bind or commit the CITY to any decision or course of action and shall not represent to any person that they have such power and/or authority.
5.0 INSURANCE
5.1. Minimum Scope and Limits of Insurance. CONCESSIONAIRE shall obtain, maintain, and keep in full force and effect during the life this agreement all of the following minimum scope of insurance coverages with an insurance company admitted to do business in California, rated “A,” Class X, or better in the most recent A.M. Best’s Rating Guide, and approved by the CITY.
CONCESSIONAIRE agrees that at all times during the term of this agreement it will maintain, at his own expense, a policy or policies of commercial general liability insurance, including premises -operations, product/completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury with a policy limit of not less than One Million Dollars ( $1,000,000) per occurrence, Two Million Dollars ($2,000,000.00) general aggregate.
CONCESSIONAIRE agrees that at all times during the term of this agreement it will maintain business automobile liability insurance for owned vehicles, hired, and non- owned vehicles, with a policy limit of not less than One Million Dollars ($1,000,000.00) combined single limit per accident for bodily injury and property damage.
The CONCESSIONAIRE must maintain Worker’s Compensation limits as required by the State of California and Employers Liability with limits of at least $1,000,000.
CONCESSIONAIRE agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers' compensation insurance policy against the City, its officers, agents, employees, and volunteers arising from work performed by CONCESSIONAIRE for the CITY and to require each of its 202
9 subcontractors, if any, to do likewise under their workers' compensation insurance policies.
5.2. Endorsements. The commercial general liability insurance policy and business automobile liability policy shall contain or be endorsed to contain the following provisions:
(a) “The CONCESSIONAIRE’s insurance coverage shall be primary insurance as respects the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing with the insurance provided by this policy.”
(b) The policy must provide Comprehensive General Liability Protection and must include, among other types of coverage, Contractual Liability and Products Liability.
(c) The policy must provide insurance in the aforementioned amount on account of liability imposed upon the CONCESSIONAIRE by law for damage caused by negligent act, error or omission of
CONCESSIONAIRE or any person for whose acts
CONCESSIONAIRE is liable arising out of the conduct of the terms of this AGREEMENT.
(d) Additional insureds: “The City of Costa Mesa and its elected and appointed boards, officers, officials, agents, employees, and volunteers are additional insured with respect to: liability arising out of activities performed by or on behalf of the CONCESSIO NAIRE pursuant to its contract with the City; products and completed operations of the CONCESSIONAIRE; premises owned, occupied or used by the CONCESSIONAIRE; automobiles owned, leased, hired, or borrowed by the CONCESSIONAIRE.”
(e) Notice: “Said policy shall not terminate, be suspended, or voided, nor shall it be cancelled, nor the coverage or limits reduced, until thirty (30) days after written notice is given to City.”
(f) Other insurance: “The CONCESSIONAIRE’s insurance coverage shall be primary insurance as respects the City of Costa Mesa, its officers, officials, agents, employees, and volunteers. Any other insurance maintained by the City of Costa Mesa shall be excess and not contributing with the insurance provided by this policy.”
(g) Any failure to comply with the reporting provisions of the policies shall not affect coverage provided to the City of Costa Mesa, its officers, officials, agents, employees, and volunteers.
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10 (h) The C
ONCESSIONAIRE’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
At a
ll times during the term of this AGREEMENT, CONCESSIONAIRE shall provide to CITY certificates of insurance showing the insurance coverage and required endorsements described above, in a form and content approved by CITY, prior to performing any services under this agreement. Notwithstanding any other provisions of this AGREEMENT to the contrary, CONCESSIONAIRE does not have the right to possession of the property until the certificate is filed with the CITY.
The Cer
tificate of Insurance should be submitted annually fifteen (15) days prior to expiration of the insurance, to the Community Services Department for verification.
5.3 Deductible or Self-Insured Retention. If any of such policies provide for a deductible or self -insured retention to provide such coverage, the amount of such deductible or self-insured retention shall be approved in advance by CITY. No policy of insurance issued as to which the City is an additional insured shall contain a provi sion which requires that no insured except the names insured can satisfy any such deductible or self-insured retention.
5.4. No
n-Limiting. Nothing in this Section shall be construed as limiting in any way, the indemnification provision contained in this Agreement, or the extent to which CONCESSIONAIRE may be held responsible for payments of damages to persons or property.
6.0 IN DEMNITY
6.1. Indemnification and Hold Harmless. CONCESSIONAIRE agrees to defend, indemnify, hold free and harmless the City, its elected officials, officers, agents and employees, at CONCESSIONAIRE’s sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the City, its elected officials, officers, agents and employees arising out of the performance of the CONCESSIONAIRE, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the CONCESSIONAIRE, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the C ONCESSIONAIRE, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the City, its elected officials, officers, agents and employees based upon the work performed by the C ONCESSIONAIRE, its employees, and/or authorized subcontractors under this Agreement, whether or not the C ONCESSIONAIRE, its 204
11 employees, and/or authorized subcontractors are specifically named or otherwise asserted
to be liable. Notwithstanding the foregoing, the CONCESSIONAIRE shall not be
liable for the defense or indemnification of the City for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the City. This provision
shall supersede and replace all other indemnity provisions contained either in the
City’s specifications contained in the RFP or CONCESSIONAIRE’s Proposal, which shall be of no force and effect.
7.0 ALTERATIONS AND IMPROVEMENTS
CONCESSIONAIRE
agrees to make the equipment installations and alterations and improvements identified in Section 3.3. of this AGREEMENT in accordance with the following terms and conditions:
7.1. Construction Approval. CONCESSIONAIRE may not construct any building,
structure, or other improvement on the premises unless the plan showing the location
and construction plans and specifications are first approved by the Director of Parks
and Community Services, the Director of Economic and Development Services and the Director of Public Works.
7.2. Standards. Any construction must be done in accordance with CITY’s Building
Code and must be constructed of all new or commercially-acceptable material, as approved by CITY.
CONCESSIONAIRE must
obtain building permits from the Director of Economic
and Development Services as required by CITY’s Code of Ordinances.
CONCESSIONAIRE
must prepare final plans and specifications substantially conforming to the preliminary approved by the Director of Parks and Community Services
and deliver to the Department of Economic and Development Services one complete set as approved by all government agencies of CITY having jurisdiction over the project.
Changes from the preliminary plans will be considered to be within the scope of the preliminary
plans if they are not substantial or if they are made to comply with suggestions, requests, or requirements of a governmental agency of CITY in connection with the application for permit approval. Any work that does not comply with the
approval final plans and specifications, or that does not comply with all applicable laws and regulations, including, but not limited to, building and safety codes and environmental laws, will be promptly redone at CONCESSIONAIRE’s cost and expense.
CONCESSIONAIRE must notify the Director of Parks and Community Services
of CONCESSIONAIRE’s intention to commence construction or bring any building materials onto the premises. CITY will have the right to post and maintain on the premises
any notices of non-responsibility provided for under applicable law, and to inspect the premises in relation to the construction at all reasonable times. 205
12 7.3. C hanges and Alterations. All changes and alterations will be of such a character that, when completed, the value and utility of the building, structure, or other improvement changed or altered by the changes or alterations, will not be less than the value and utility immediately before the change or alteration.
7.4 Workmanlike Manner. All work done in connection with any changes or alterations must be performed in a good and workmanlike manner and with due diligence.
7.5. Imp
rovements. CONCESSIONAIRE may not remove or demolish, in whole or in part, any improvement upon the premises without the prior written consent of CITY, which may, at its sole discretion, condition its consent upon the obligation of CONCESSIONAIRE to replace the improvement, in whole or in part.
7.6. Fur
ther Acts . CITY, upon written request of CONCESSIONAIRE, will execute any instruments as may be reasonably necessary to subject CITY’s fee interest in the premises to easements for the installation, maintenance, repair, and replacement of normal utilities to service the premises; provided, however that CITY will incur no out - of-pocket costs, liabilities, obligations, or expenses as a result of the granting for the installation, maintenance, repair, or replacement of utilities during the term of this AGREEMENT.
7.7. Pa
yment for Utility Services. CONCESSIONAIRE must pay all charges for electricity and telephone services. All utility services must be billed in CONCESSIONAIRE’s name.
7.8. Damage to or Destruction of Improvements. In the event of damage to, or destruction of, CONCESSIONAIRE -constructed facilities, or if improvements located within the premises are declared unsafe or unfit for use or occupancy by a public entity with the authority to make and enforce declaration, CON CESSIONAIRE must within fifteen days, commence and diligently pursue to complete the repair, replacement, or reconstruction of improvements necessary to permit full use and occupancy of the premises for the purposes required by this AGREEMENT. Repair, replacement, or reconstruction of improvements within the premises must be accomplished according to plans approve by the Director of Community Services.
8.0 LIENS
8.1. P
ayment of Liens. Subject to CONCESSIONAIRE’s right to contest the same as provided herein, CONCESSIONAIRE agrees that it will pay as soon as due all mechanics, laborers, materialmen, contractors, subcontractors, or similar charges, and all other charges whatever nature which may become due, attached to or payable on the premises for any structure or other improvements thereon, from and after the date that this AGREEMENT is executed, or as a result of any work performed on the premises by CONCESSIONAIRE or any of CONCESSIONAIRE’s agents, employees, or contractors 206
13 prior to that date. CONCESSIONAIRE will not be responsible for any charges arising from work performed on the premises by the CITY’s employees or agents.
8.2. No Agency. CONCESSIONAIRE is not in any respect an agent of CITY, nor is CONCESSIONAIRE authorized to do any act or to make any contract encumbering or in any manner affecting the title or rights of CITY in or to reversionary interest of CITY in the premises or the improvements thereon.
8.3. Discharge of Liens . If any mechanics’ or other liens are filed against the premises or an interest therein, which are caused by CONCESSIONAIRE’s conduct, CONCESSIONAIRE must cause the same to be discharged of record within ninety (90) days after the date of filing the same, or otherwise free the premises from the effect of the claim of lien and any action brought to foreclose the l ien; or CONCESSIONAIRE must promptly furnish to CITY a bond in an amount and issued by a surety company satisfactory to CITY, securing CITY against payment of the lien and against any and all loss or damage whatsoever in any way arising from the failure of CONCESSIONAIRE to discharge the lien.
8.4. Contest of Liens. CONCESSIONAIRE will have the right to contest any liens in good faith and with due diligence, provided that during the time CONCESSIONAIRE contests the liens, CONCESSIONAIRE must furnish CITY with a bond in an amount and issued by a surety company satisfactory to CITY securing CITY against payment of the lien and against any and all loss or damage whatsoever in any way arising from the failure of CONCESSIONAIRE to discharge the lien, and provided further the CONCESSIONAIRE must fully pay and immediately discharge the amount of any final judgment rendered against CITY or CONCESSIONAIRE in any litigation involving the enforcement of the liens or their validity, provided that the lien(s) arose from CONCESSIONAIRE’s conduct.
8.5. Failure to Discharge. In the event of CONCESSIONAIRE’s failure to discharge liens arising from its conduct, to satisfy any uncontested lien within the ninety (90) day period, or to pay and satisfy any judgment, CITY may, but is not obligated to, pay the amount inclusive of any interest and any costs assessed against CONCESSIONAIRE in the litigation, or may discharge the lien by contesting its validity, or by any other lawful means.
9.0 SAFETY REQUIREMENTS AND OPERATIONS
9.1. Safety Hazards. All work performed under this AGREEMENT must be performed in a manner that meets or exceeds all State of California safety regulations .
The CITY reserves the right under California law to issue restraining or cease and desist orders to CONCESSIONAIRE when unsafe or harmful acts are observed or reported relating to or connected with CONCESSIONAIRE’s performance under this AGREEMENT.
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14 9.2. Hazard Free Premises. CONCESSIONAIRE must maintain the premises free of hazards to persons and/or property resulting from operations. Any hazardous condition noted by the CONCESSIONAIRE, at any place on the premises that is not a result of CONCESSIONAIRE’s operations, must be reported to CITY as soon as reasonably possible.
10.0 MAINTENANCE AND REPAIR
10.1. Preservation of Premises. CONCESSIONAIRE must at its sole cost and expense, throughout the term of this AGREEMENT, maintain, and as reasonably necessary, remodel, refurbish, or otherwise preserve the buildings, structures, other improvements, equipment, fixtures and signs on the premises in a safe, clean, and sanitary condition and in compliance with all requirements of law. CONCESSIONAIRE must also conduct its operations on the premises, using the best known available and practical devices and facilities, to reduce as much as is reasonably able to, considering the nature and extent of CONCESSIONAIRE’s operations, the emanating from the premises of noise, vibration, movements of air, fumes, and odors so as not to interfere unreasonably with the use of other adjoining premises.
10.2. Inspection. CITY, by its officers, employees, agents, representatives, and contractors, has the right at all reasonable times to enter upon the premises for the purpose of inspecting the premises for any maintenance violations. CONCESSIONAIRE must correct each and every violation as soon as possible but no later than seventy -two (72) hours after being informed in writing by the CITY of the maintenance violations.
10.3. Corrections. If CONCESSIONAIRE fails to correct any unsafe, unclean, or unsanitary condition within seventy-two (72) hours after being notified in writing to do so by CITY, CITY has the right, but not the obligation, to enter the premises and remedy the condition or conditions and charge the cost to CONCESSIONAIRE without any liability for any resulting business loss or damage. In the event of an emergency, CITY has the right, but not the obligation, to immediately enter the premises to remedy any unsafe, unclean, or unsanitary condition and charge the cost to CONCESSIONAIRE. CITY will notify CONCESSIONAIRE of the emergency as soon as reasonably possible.
10.4. Maintenance. CONCESSIONAIRE must paint, clean, and reasonably preserve and refurbish the surfaces of the interior and exteriors of all buildings, structures, and work areas on the premises.
11.0 TITLE
11.1. Surrender of Possession. At the expiration of the term of this AGREEMENT or upon earlier termination, this AGREEMENT will terminate without further notice and CONCESSIONAIRE must immediately surrender possession of the premises to CITY, and all structures and other improvements must remain.
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15 11.2. Removal. No structures or other improvements may be removed from the premises or voluntarily destroyed or damaged during the term of this AGREEMENT without prior written consent of the City Manager, which may be granted or withheld in the sole discretion of the City Manager.
11.3. Personal Property. Any and all personal property, not attached to or installed in any building, structure, or other improvement that CONCESSIONAIRE places in, upon, or about the premises during the term may be removed prior to the expiration of the term of this AGREEMENT and will, as between CITY and CONCESSIONAIRE, be and remain the personal property of CONCESSIONAIRE.
11.4. Utility Fixtures. Notwithstanding any terms to the contrary contained in this AGREEMENT, any and all lighting, plumbing, air cooling, air conditioning, heating and ventilating equipment (“Utility Fixtures”) are deemed to be part of the realty, and regardless of whether or not any item or equipment can be removed without structural damage to the building, structure, or improvement in which it is installed, no Utility Fixture may be removed from any buildings, structures, or other improvements, except for repairs, alterations, and replacement with like equipment, without the consent of CITY, and all Utility Fixtures must remain as a part of the realty at the expiration or termination of the term of this AGREEMENT.
12. ASSIGNMENT AND SUBLETTING
CONCESSIONAIRE may not sublet all or any part of the premises or assign this AGREEMENT or any interest in the premises, without first obtaining the written consent of CITY. The giving of any consent will not be a waiver of any right to object to further or future assignments or subleases, consent to which must be first obtained in writing from CITY. Any assignment of this AGREEMENT to an assignee approved by CITY will not relieve the assignor of any liability under this AGREEMENT arising after the effective date of the assignment unless CITY expressly and in writing releases the assignor, assignor will remain fully liable under this AGREEMENT during the entire unexpired term. CITY will have forty -five (45) days to approve or disapprove any proposed sublease, assignment, or transfer submitted by CONCESSIONAIRE.
13. COMPLIANCE WITH LAW
13.1. Operation. CONCESSIONAIRE must conduct all operations in accordance with, and comply with, and must cause all sub- leases, permitees, licensees, assignees, and/or concessionaires to conduct all operations in accordance with, and comply with, all federal, state, and local laws, ordinances, and rules and regulations applicable to the business, whether now in effect or hereafter adopted (including, without limitation, those of the City of Costa Mesa, the County of Orange, the State of California, and the United States of America), including, but not limited to, compliance with all technical construction codes adopted by the City of Costa M esa, and all rules and regulations adopted for the operation of the premises, to the extent CONCESSIONAIRE is able to control the conduct of third parties by means of reasonable efforts.
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16 13.2. Notice of Default. If CITY determines that CONCESSIONAIRE is in default in the performance of any of the terms or conditions of this AGREEMENT, CITY shall serve CONCESSIONAIRE a written notice of the default. CONCESSIONAIRE shall have thirty (30) days after service of said notice to cure the default. If, however, any default cannot be physically corrected within thirty (30) days, a nd if CONCESSIONAIRE has commenced to remedy the default promptly after the receipt of notice, and continuously and diligently proceeds in good faith to eliminate the default, then the period for correction will be extended as reasonably necessary to correct the default. If CONCESSIONAIRE fails to cure the default pursuant to this section, CITY shall have the right to immediately terminate this AGREEMENT.
14. NOTICES
All notices, requests, demands, or other communications under this AGREEMENT must be in writing. Notice will be sufficiently given for all purposes as follows:
(a) Personal Delivery. When personally delivered to the recipient, notice is effective on delivery.
(b) First-class Mail. When mailed first-class to the last address of the recipient known to the party giving notice, notice is effective three (3) mail delivery days after deposit in a United States Postal Service office or mailbox.
(c) Certified Mail. When mailed certified mail, return receipt requested, notice is effective on receipt, if delivery is confirmed by a return receipt.
(d) Overnight Delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender’s account, notice is effective on delivery, if delivery is confirmed by the delivery service.
Addresses for purposes of giving notice are as follows:
CONCESSIONAIRE: CITY:
Alexandria (Ally) Gavin
1922 Pomona Avenue
Costa Mesa, CA 92627
City of Costa Mesa
Attn: Director of Parks & Community
Services
77 Fair Drive
Costa Mesa, CA 92626
Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified will be deemed effective as of the first date the notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger, or overnight delivery service.
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17 Any party may change its address its address by giving the other party notice of the change in any manner permitted by this AGREEMENT.
15. AMENDMENTS AND MODIFICATIONS
This AGREEMENT may not be amended or modified in any way, except in writing signed by both parties.
16. A PPROVALS BY CITY
No consent, approval, or satisfaction of CITY, and no waiver by CITY of any provision will be effective unless in writing specifically referring to this AGREEMENT and executed by the City Manager or his designee for CITY; no consent, approval, or satisfaction with respect to this AGREEMENT will be inferred or implied form any other act or omission of CITY or any agent or employee of CITY. Similarly, unless expressly provided, no approval, consent, or other action taken by CITY under or pursuant to this AGREEMENT will in any way restrict or diminish the rights, powers, or jurisdiction of CITY, its City Council, its Commissions, and other agencies with respect to the governance of the premises and all improvements, business, and activities located on or conducted on the premises.
17. GENERAL PROVISIONS
17.1. No Exclusive Remedy. No remedy or election provided by any provisions in this AGREEMENT will be deemed exclusive unless so indicated but will whenever possible be cumulative with all other remedies in law or equity, except as otherwise specifically provided herein.
17.2. Covenant and Condition. Each provision will be deemed both a covenant and condition.
17.3. Time and Essence. Time is of the essence of this AGREEMENT and of each and every provision of this AGREEMENT where time is a factor.
17.4. Paragraph Headings. The paragraph and subparagraph headings in this AGREEMENT are for convenience and reference only, and are not intended to and do not define, govern, limit, modify, or in any manner affect the scope, meaning or intent of any provision in this AGREEMENT.
17.5. Independent Contractor. CONCESSIONAIRE is and shall be acting at all times as an independent contractor and not as an employee of City. CONCESSIONAIRE shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act on behalf of City as an agent. Neither City nor any of its agents shall have control over the conduct of CONCESSIONAIRE or any of CONCESSIONAIRE’s employees, except as set forth in this Agreement. CONCESSIONAIRE shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or 211
18 employees of City. CONCESSIONAIRE shall secure, at its sole expense, and be responsible for any and all payment of Income Tax, Social Security, State Disability Insurance Compensation, Unemployment Compensation, and other payroll deductions for CONCESSIONAIRE and its officers, agents, and employees, and all business licenses, if any are required, in connection with the services to be performed hereunder.
CONCESSIONAIRE shall indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. CONCESSIONAIRE further agrees to indemnify and hold City harmless from any failure of CONCESSIONAIRE to comply with the applicable worker’s compensation laws. City shall have the right to offset against the amount of any fees due to CONCESSIONAIRE under this Agreement any amount due to City from CONCESSIONAIRE as a result of CONCESSIONAIRE’s failure to promptly pay to City any reimbursement or indemnification arising under this paragraph.
17.6. PERS Eligibility Indemnification. In the event that CONCESSIONAIRE or any employee, agent, or subcontractor of CONCESSIONAIRE providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, CONCESSIONAIRE shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of CONCESSIONAIRE or its employees, agents, or subcontractors, as well as for the payment of any penalties an interest on such contributions, which would otherwise be the responsibility of City.
Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, CONCESSIONAIRE and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.
17.7. Cooperation. In the event any claim or action is brought against CITY relating to CONCESSIONAIRE’s performance or services rendered under this Agreement, CONCESSIONAIRE shall render any reasonable assistance and cooperation which CITY may require.
17.8. Ownership of Documents. All findings, reports, documents, information and data including, but not limited to, computer tapes or discs, files and tapes furnished or prepared by Consultant or any of its subcontractors in the course of performance of this Agreement, shall be and remain the sole property of City. Consultant agrees that any such documents or information shall not be made available to any individual or organization without the prior consent of City. Any use of such documents for other projects not contemplated by this Agreement, and any use of incomplete documents, shall be at the sole risk of City and without liability or legal exposure to Consultant. City shall indemnify and hold harmless Consultant from all claims, damages, losses, and expenses, 212
19 including attorneys’ fees, arising out of or resulting from City’s use of such documents for other projects not contemplated by this Agreement or use of incomplete documents furnished by CONCESSIONAIRE. CONCESSIONAIRE shall deliver to CITY any findings, reports, documents, information, data, in any form, including but not limited to, computer tapes, discs, files, audio tapes or any other Project related items as requested by CITY or its authorized representative, at no additional cost to the CITY.
17.9. Public Records Act Disclosure. Consultant has been advised and is aware that this Agreement and all reports, documents, information and data, including, but not limited to, computer tapes, discs or files furnished or prepared by Consultant, or any of its subcontractors, pursuant to this Agreement and provided to City may be subject to public disclosure as required by the California Public Records Act (California Government Code section 7920.000 et seq.). Exceptions to public disclosure may be those documents or information that qualify as trade secrets, as that term is defined in the California Government Code section 7924.510, and of which Consultant informs City of such trade secret. The City will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The CITY will endeavor to maintain as confidential all information obtained by it that is designated as a trade secret. The CITY shall not, in any way, be liable or responsible for the disclosure of any trade secret including, without limitation, those records so marked if disclosure is deemed to be required by law or by order of the Court.
17.10. Conflict of Interest. Consultant and its officers, employees, associates and subconsultants, if any, will comply with all conflict -of-interest statutes of the State of California applicable to Consultant's services under this agreement, including, but not limited to, the Political Reform Act (Government Code sections 81000, et seq.) and and Government Code section 1090. During the term of this Agreement, Consultant and its officers, employees, associates and subconsultants shall not, without the prior written approval of the City Representative, perform work for another person or entity for whom Consultant is not currently performing work that would require CONCESSIONAIRE or one of its officers, employees, associates or subcontractors to abstain from a decision under this Agreement pursuant to a conflict of interest statute.
17.11. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant occurs, then Consultant shall, at no cost to City, provide all necessary design drawings, estimates and other Consultant professional services necessary to rectify and correct the matter to the sole satisfaction of CITY and to participate in any meeting required with regard to the correction.
17.12. Prohibited Employment. CONCESSIONAIRE will not employ any regular employee of CITY while this Agreement is in effect.
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20 17.13. Order of Precedence. In the event of an inconsistency in this Agreement and any of the attached Exhibits, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern over the document referenced.
17.14. Costs. Each party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.
17.15. Binding Effect. This Agreement binds and benefits the parties and their respective permitted successors and assigns.
17.16. No Third Party Beneficiary Rights. This Agreement is entered into for the sole benefit of CITY and CONCESSIONAIRE and not other parties are intended to be direct or incidental beneficiaries of this Agreement and not third party shall have any right in, under or to this Agreement.
17.17. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.
17.18. Construction. The parties have participated jointly in the negotiation and drafting of this Agreement and have had an adequate opportunity to review each and every provision of the Agreement and submit the same to counsel or other consultants for review and comment. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.
17.19. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable in any circumstances, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance. Notwithstanding the foregoing, if the value of this Agreement, based upon the substantial benefit of the bargain for any party, is materially impaired, which determination made by the presiding court or arbitrator of competent jurisdiction shall be binding, then both parties agree to substitute such provision(s) through good faith negotiations.
17.20. Amendments. Only a writing executed by the parties hereto or their respective successors and assigns may amend this Agreement.
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21 17.21. Waiver. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance.
No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom enforcement of a waiver is sought. The waiver of any right or remedy in respect to any occurrence or event shall not be deemed a waiver of any right or remedy in respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.
17.22. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
17.23. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties are formally bound to the provisions of this Agreement.
17.24. Consent or Approval. In the event any provision under this AGREEMENT requires or anticipates that either party make judgment, give consent or approval, or exercise discretion, that party agrees to do so reasonably and in good faith, with due diligence, except in those specific instances where an AGREEMENT provision specifically sets forth a different standard of approval, in which case the specific standard of that AGREEMENT provision will govern.
17.25. Jurisdiction. This AGREEMENT will be administered and interpreted under the laws of the State of California. Jurisdiction of any litigation arising from the AGREEMENT will be in Los Angeles County, California.
17.26. Security. CONCESSIONAIRE hereby acknowledges that the CITY has no obligation to provide security. CONCESSIONAIRE assumes all responsibility for the protection of the CONCESSIONAIRE, its employees, agents, invitees, customers, and property from acts of third parties.
17.27. Relationship. Nothing contained in this AGREEMENT will be deemed or construed to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and CONCESSIONAIRE or any other relationship other than grantor and concessionaire.
17.28. Attorney’s Fees. If an action is instituted to enforce any provision or for damages by reason of an alleged breach of any provision of this AGREEMENT, the prevailing party will be entitled to receive from the other party all costs and expenses and an amount as the court may adjudge to be reasonable attorneys’ fees and costs.
17.29. Complete Understanding. This AGREEMENT represents the full and complete understanding between the parties with respect to the subject matter. No verbal 215
22 agreements or representations or implied covenants will be held to vary the provisions of this AGREEMENT.
17.30. Further Assurances. CONCESSIONAIRE and CITY will execute any and all additional papers, documents, and other assurances and will do any and all acts or things reasonably necessary in connection with the performance of their obligations to carry out the express intent of the parties to this AGREEMENT in a timely manner.
17.31. Force Maj eure. If the performance by CONCESSIONAIRE of any of its obligations or undertakings under this AGREEMENT is interrupted or delayed by an occurrence not occasioned by the conduct of either party to this AGREEMENT, whether that occurrence is an act of God or public enemy, or whether that occurrence is caused by war, riot, storm, earthquake, or other natural forces, or by the acts of anyone not a party to this AGREEMENT, then CONCESSIONAIRE will be excused from any further performance for whatever period of time after the occurrence is reasonably necessary to remedy the effects of the occurrence.
17.32. Exhibits. All exhibits identified in this AGREEMENT are incorporated into the AGREMENT by this reference.
[Signatures appear on following page.]
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23 IN WITNESS WHEREOF, the parties have executed this AGREEMENT on the date first written above.
CONSULTANT
__________________________________ Date: __________________________ Signature
__________________________________
[Name and Title]
CITY OF COSTA MESA
__________________________________ Date: __________________________ Cecilia Gallardo-Daly
City Manager
ATTEST:
__________________________________
Brenda Green
City Clerk
APPROVED AS TO FORM:
__________________________________ Date: __________________________ Kimberly Hall Barlow
City Attorney
APPROVED AS TO INSURANCE:
__________________________________ Date: __________________________ Ruth Wang
Risk Management
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24 APPROVED AS TO CONTENT:
__________________________________ Date: __________________________ Monique Villasenor
Project Manager
DEPARTMENTAL APPROVAL:
__________________________________ Date: __________________________ Brian Gruner
Parks and Community Services Director
APPROVED AS TO PURCHASING:
__________________________________ Date: __________________________ Carol Molina
Finance Director
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EXHIBIT A
LIONS PARK CAFÉ LOCATION
219
Café Location
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EXHIBIT B
RFP 26-05
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REQUEST FOR PROPOSAL 26-05
FOR
Lions Park Café Concessions Services
Parks and Community Services Department
CITY OF COSTA MESA
Released on October 1, 2025
RFP Facilitator: Mike Fuentes; [email protected]
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REQUEST FOR PROPOSAL
FOR
Lions Park Café Concessions Services
The City of Costa Mesa (hereinafter referred to as the “City”) is requesting Proposals from qualified consultants for Lions Park Café Concessions Services for the Parks and Community Services Department. The awarded Contract, (hereinafter referred to as “Contract”) shall be in accordance with the Sample Professional Service Agreement, Appendix B terms, conditions, and scope of work. Prior to submitting a Proposal, Proposers are advised to carefully read the instructions below, including the Sample Professional Service Agreement and any solicitati on appendix/exhibits. The term is expected to be for 3 year(s) with two one-year renewal options. The City reserves the right to award one or more contracts for this service.
I. GENERAL INFORMATION
The City of Costa Mesa is a general law city, which operates under the council/manager form of government with an annual General Fund budget of over $186.8 million and a total budget of over $224 million for fiscal year 2025-2026.
The City of Costa Mesa, incorporated in 1953, has an estimated population of 115,000 and has a land area of 16.8 square miles. It is located in the northern coastal area of Orange County, California, and is bordered by the cities of Santa Ana, Newport Beach, Huntington Beach, Fountain Valley and Irvine.
The City is a “full service city” providing a wide range of services. These services include: police and fire protection; animal control; emergency medical aid; building safety regulation and inspection; street lighting; land use planning and zoning; housing and community development; maintenance and improvement of streets and related structures; traffic safety maintenance and improvement; and full range of recreational and cultural programs.
The City of Costa Mesa is home to the Segerstrom Center for the Arts, Orange County Fairgrounds, South Coast Repertory Theater and the South Coast Plaza Shopping Center, which is the single largest commercial activity center in the City. The volume of sales generated by South Coast Plaza secures its place as the highest volume regional shopping center in the nation.
The successful Proposer, shall have experience in similar types of services. All Proposers responding to this Request for Proposal (RFP) will be evaluated on the basis of their expertise, prior experience on similar projects, demonstrated competence, ability to meet the requested services, adequate staffing, reference checks, understanding of services, cost and responsiveness to the needs and concerns of the City of Costa Mesa.
1. Important Notice: The City has attempted to provide all information available. It is the responsibility of each Proposer to review, evaluate, and, where necessary, request any clarification prior to submission of a Proposal. Proposers are not to contact other City personnel with any questions or clarifications concerning this Request for Proposal (RFP). The City’s Purchasing Department contact set out in RFP title page. Any City response relevant to this RFP other than through or approved by City’s Purchasing Department is unauthorized and will be considered invalid.
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