Policy SB 442
Collective
Bargaining
Agreements
Long Beach
Ordinance
Costa Mesa
Ordinance
Proposed
Amendments
Requires self-
checkout be staffed
Yes- No other
duties allowed
Yes- Other duties
allowed
Yes- No other
duties allowed
Yes-No other duties
allowed
Yes-No other duties
allowed
Staffing ratio No No (1 per bank) Yes 1:3 Yes 1:3 Yes 1:3 Requires staffed
station always be open
Yes Yes from 8:00am to
7:00pm
Yes Yes Yes
Limits self-checkout to
15 items or less
Yes Yes Yes Yes Yes-*
Signage/notification
required
Informing
customers of
item limit
Informing
customers of item
limit
Notifying
customers of
ordinance w/ link
to city website for
more info and
enforcement
options
Notifying customers
of ordinance w/ link
to city website for
more info and
enforcement
options
Local store contact
for violations
Informing customers
of item limit
Public signage with w/
link to city
website/ordinance
Local store contact for
violations
Requires a workforce
policy limiting self-
checkout to 15 items
or less
yes No Yes Yes No
Items requiring ID Prohibited
from self-
checkout
Unknown Prohibited from
self-checkout
Prohibited from self-
checkout
Prohibited from self-
checkout
Locked Items Allowed in
self-checkout
Unknown Prohibited from
self-checkout
Prohibited from self-
checkout
Prohibited from self-
checkout
Enforcement &
Penalties
-$1,000 per
day by Division
of Labor
Standards
Enforcement
(max
$200,000)
-Employers
not subject to
penalties for
the 15 items
limit so long as
signage and
policy are in
place
Unknown
(Grievance or Labor
Commission/Agenc
y?)
Private right of
action by
Employees or
Customers
$100 per day (max
1,000)
Attorney’s fees
and costs
Private right of
action by
Employees or
Customers
$100 per day (max
1,000)
Attorney’s fees and
costs
7 days to cure
Private right of action
by Employees or
Customers
$100 per day (max
1,000)
Attorney’s fees and
costs
15 days to cure
Effective Date Jan. 1, 2027, if
passed and
signed
As of 2025 31 days after
passage
30 days after
passage
60 days after passage
City Council Meeting
February 3, 2026
Adopt an Ordinance Requiring
Staffing at Self-Service
Checkout Stations
2 Background
• On August 12, 2025, Long Beach City Council adopted an ordinance to mandate staffing requirements at grocery and drug retail stores • On November 4, 2026, Costa Mesa staff presented a preliminary analysis of the City of Long Beach ordinance and impacts of implementing a measure in Costa Mesa. The City Council directed staff to draft an ordinance similar to Long Beach’s for consideration.
• On January 20, 2026, City Council made a motion to adopt an ordinance similar to the City of Long Beach ordinance with modifications. 3 January 20, 2026, City Council Meeting
Public Comment:
• United Food and Commercial Workers (UFCW)
Store policies to understaff self-checkout diverts employees from assisting customers Language barriers or machine errors result in negative customer experience with complaints directed to employees
Support adoption of Long Beach version with no revisions • Grocers & Retailers
Retail theft addressed by Proposition 36 and 2024 state legislative package Self-checkout is addressed in collective bargaining agreements and state legislation is pending with UFCW included in discussions
Private right of action places liability on stores and employees to enforce the 15 items or less limit and the prohibition on secure or locked items from self-checkout 4 January 20, 2026, City Council Meeting
City Council Modifications to Proposed Ordinance:
• Maintain the 7 day right to cure
• Eliminate the alternative compliance language
• Restore language in Long Beach ordinance to include stores over 85,000 square with 10% of floor space dedicated to non-taxable goods
• Require notice to local store management in addition to any contact designated by stores
Additionally, the City Council requested staff provide an update on ordinance in one year.
5 Proposed Costa Mesa Ordinance
• Applies to:
Food retail establishments over 15,000 square feet and those over 85,000 square feet with 10% of sale floor dedicated to non-taxable merchandise (groceries and prepared food)
Drug retail establishments
• Requires one employee per three stations (1:3)
• Limits self-checkout to 15 items and prohibits items locked or with theft-deterrent measures
• Enforced through private right of action
7 days to cure
Penalties of $100 per day ($1,000 maximum per employee per day) Attorney’s Fees and Costs
6 Costa Mesa Stores
7 Alternatives
The City Council may:
• Adopt the Ordinance as proposed, or not adopt the Ordinance • Modify the Ordinance
• Substantive amendments will trigger a new first reading • Extending implementation beyond normal 30 days is not substantive 8 Recommendations
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
City Council Meeting
February 3, 2026
Operations Agreement for the
Lions Park Café
2 Background
• Phase III of the Lions Park Project included the construction of the Café Kiosk, located at 1845 Park Avenue.
Construction of the new 1,100 SF café kiosk was funded by Supervisor Foley ($1.2 M) and City’s Capital Improvement Fund ($1.1 M).
• City entered into MOU with County for shared revenue with OC Public Libraries
• City is seeking a viable experienced operator to provide services at the Café Kiosk.
3 RFP Process
• October 2, 2025 – RFP released for Café Operator.
• Two (2) proposals were submitted:
Neat Coffee
Everytable
• Proposals 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
• December 10, 2025 – Interviews with the 2 vendors
4 RFP Process
• Interviews were scored by panelists in the following categories:
Grasp of the project
Approach
Qualifications and experience
Communication
Quality of presentation
• Based on proposal and interview scores, it was determined that Neat Coffee is the most qualified and experienced vendor for the café operations.
Proposers Proposal Scores Interview Scores Total
EveryTable 1050 1160 2210
Neat Coffee 1070 1240 2310
5 Preferred Vendor
• Neat Coffee
Locally owned café business from
Costa Mesa since 2015.
High quality multi-roaster shop
Community-oriented business
• Vendor will serve:
Monday through Sunday from 7 AM
to 5 PM
Discounts
Special event pricing for City-hosted
events
6 Staff Recommendations
1. Award an Operation Agreement to Neat Coffee for the
Management and Operation of the Lions Park Café.
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.
City Council Meeting
February 3, 2026
Status and Outreach Update
Climate Action & Adaptation Plan (CAAP)
2 Project Background
• Protect Our Environment – Reduce GHG
and conserve natural resources
• Safeguard Our Community – Prepare for
climate-related hazards
• Support Economic Growth – Promote
sustainable businesses and job creation
• Plan for Our Future – Align with state and
federal climate goals and provide access to
state grants
The CAAP supports City Council’s goal to Advance Environmental Sustainability and Climate Resiliency, aligns with state mandates and best practices for local climate planning.
CAAP Development Contract was approved in October 2024 and kicked off in December 2024. CAAP Benefits:
3 Project Progression
The following tasks have been completed or are in process:
• Data Collection
• Review of Existing Plans, Policies, and Programs
• GHG Emissions Inventory and Future Projections
• Climate Vulnerability and Risk Assessment - Interdepartmental Coordination Across City Departments
• Community Outreach and Stakeholder Engagement
4 Public Outreach & Input
• Earth Day Celebration 2025
• Concerts in the Park
• Engagement Activities:
o Project Website
o Targeted Outreach & Pop-Up Events
o Social Media Posts,
o Surveys (226 Residents and 235 Employees) , and
o Stakeholder Meetings (Internal and External)
5 What Have We Learned?
COSTA MESA 2023
COMMUNITY INVENTORY
Many participants shared a vision for a more
sustainable Costa Mesa that included the
following:
• Increased renewable energy sources such
as solar.
• Expand access to green spaces, such as
parks, playgrounds and community
gardens.
• Improved transportation options as
alternatives to car travels, such as biking,
walking, and public transit.
• Increase efforts to compost and recycle to
reduce waste in the community.
COMMUNITY COMMENTS
6 What Have We Learned?
7 Next Steps - Policy Development
8 Next Steps - Policy Development
9 Next Steps – Policy Development
Sector Primary Objective What This Means - Actions
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.
10 Next Steps – Policy Development
11 Next Steps – Policy Development
Topic More Prescriptive Policy Approaches More Flexible Policy Approaches GHG Reduction 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 Grant & Funding
Alignment
Strong alignment with certain state and
regional funding programs
Continues to support grant competitiveness and
coordination
Examples of Policy Approaches
12 Next Steps – Public Participation
• Draft CAAP Objectives and Strategies
• Draft action items will be vetted/reviewed with our internal stakeholder group for feasibility
• Present draft policies & actions 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.
Recommendation
Staff recommends the City Council receive the
presentation, provide feedback, and file this
report.
13 City Council Meeting
February 3, 2026
APPROVAL OF A CODE OF
ETHICS AND CONDUCT
2 BACKGROUND
• Currently, the City does not have a Code of Ethics and Conduct established. • On July 8, 2025, the Council discussed potential adoption of a Code of Ethics and Conduct, giving direction to staff regarding potential provisions of such a code to be considered at a future City Council meeting for approval.
• Staff drafted a Code of Ethics and Conduct for Elected and Appointed Officials modeled on the City of Gardena Code of Ethics and Conduct and includes several provisions from the City of Irvine policy.
3 OBJECTIVES
• The goal of the Code of Ethics and Conduct is to ensure public confidence in the integrity of local government elected and appointed officials.
• Establishing an ethics code promotes an honest, effective, and accountable city government, encouraging high standards of behavior by public officials, and assists with decision-making. • The intent of the Code of Ethics is to achieve fair, ethical, and accountable local government for the City of Costa Mesa.
4 The following key components are in the draft Code of Ethics and Conduct:
• Act in the Public’s Interest
• Comply with the Law
• Conduct of Members
• Respect for Process
• Conduct of Public Meetings
• Decisions Based on Merit
• Communication
• Conflict of Interest
• Gifts and Favors
• Confidential Information
• Use of Public Resources
• Representation of Private Interests
• Advocacy
• Policy role of Members
• Independence of Boards, Commissions, and Committees
• Positive Workplace Environment
• Implementation
• Compliance and Enforcement
• Statement of Commitment
PROPOSED CODE OF ETHICS AND CONDUCT
5 PROPOSED CODE OF ETHICS AND CONDUCT
• Would prohibit paid lobbying (defined as advocating to officials of other agencies in Orange or Los Angeles County to take “action on any public policy issue of a discretionary nature pending before the official’s agency”) on behalf of clients of employer.
• Prohibits any financial interest in any contract with City. • In some cases, goes beyond existing state laws on financial and other conflicts. • Emphasizes policy role of Council and Commissions versus administrative functions of City Manager and subordinate employees.
• Addresses relations between Council and Commission Members with staff, the public and other Members, requiring civility and professionalism.
• Includes reporting, investigation and enforcement mechanisms.
RECOMMENDATION
Staff recommends the City Council approve a Code of Ethics and Conduct.