Agenda packet — Costa Mesa City Council, May 5, 2026 (part 1 of 4)

CITY OF COSTA MESA
REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
Agenda
City Council Chambers
77 Fair Drive
6:00 PMTuesday, May 5, 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.

Closed Captioning is available via the Zoom option in English and Spanish.

Los subtítulos están disponibles a través de la opción Zoom en inglés y español.

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.

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1 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 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/81887305556?pwd=KcjfCTLXajPFZHf73maIbuTmwUobTG.1 Or sign into Zoom.com and “Join a Meeting”
Enter Webinar ID: 818 8730 5556/ Password: 658733
• 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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2 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 2026
Participate via telephone:

Call: 1 669 900 6833 Enter Webinar ID: 818 8730 5556/ Password: 658733 During the Public Comment Period, press *9 to "raise your hand" and to be added to the queue to speak 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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3 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 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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4 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 2026

REGULAR MEETING OF THE CITY COUNCIL AND HOUSING AUTHORITY MAY 5, 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:

1. Proclamation: Bike Month
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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5 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 2026

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 Reynolds

2. Council Member Pettis

3. Council Member Buley

4. Council Member Gameros

5. Council Member Marr

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
26-261
RECOMMENDATION:

City Council and Housing Authority approve the reading by title only and waive further reading of Ordinances and Resolutions.

2. READING FOLDER 26-268
RECOMMENDATION:

City Council receive and file Claims received by the City Clerk and authorize staff to reject any and all Claims: Marisela Maldonado, Jose Antonio Ortiz, Debra Von Trapp, RDK Holdings LLC.

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6 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 2026

3. ADOPTION OF WARRANT RESOLUTION 26-233
RECOMMENDATION:

City Council approve Warrant Resolution No. 2753.

1. Summary Check Registration 4-9-2026

2. Summary Check Registration 4-17-2026

3. Summary Check Registration 4-23-2026
Attachments:

4. PROPOSED BUSINESS IMPROVEMENT AREA (BIA)

REAUTHORIZATION AND INTENTION TO LEVY AN ANNUAL

ASSESSMENT
26-234
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the 2025-26 Annual Report for the Business Improvement Area (BIA) (Attachment 1).

2. Receive and file the audited financial report for Fiscal Years Ended June 30, 2024, and June 30, 2025 (Attachment 2).

3. Adopt Resolution 2026-xx, declaring the City ’s intention to levy an annual assessment for Fiscal Year 2026-27 for the Business Improvement Area, covering certain Costa Mesa hotels and motels and setting the time and place for a Public Hearing on the proposed annual assessment Attachment 3).

1. TCM Annual Report 2026

2. FY Ending June 2025 Financial Audit

3. Resolution No. 2026-XX Intent Business Improvement Area Attachments:

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7 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 2026

5. APPROVAL OF THE AMENDED AND RESTATED NATIONAL

POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER

PERMIT IMPLEMENTATION AGREEMENT BETWEEN THE COUNTY

OF ORANGE, ORANGE COUNTY FLOOD CONTROL DISTRICT, AND

PARTICIPATING ORANGE COUNTY CITIES
26-243
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement (“Agreement”) between the County of Orange, Orange County Flood Control District, and participating Orange County cities.

2. Authorize the City Manager to execute the agreement and any related documents necessary to implement the terms of the agreement.

1. Stormwater Permit Implementation AgreementAttachments:

6. REQUEST FOR APPROPRIATION OF MEASURE M 2 FAIRSHARE

FUNDS FOR CITYWIDE TRAFFIC SIGNAL MAINTENANCE
26-244
RECOMMENDATION:

Staff recommends the City Council:

1. Authorize an appropriation of $270,000 from Measure M 2 Fairshare (Fund 416) fund balance to the Citywide Traffic Signal Improvements Project (CIP #370058).

2. Approve the use of Measure M 2 Fairshare and Gas Tax funds within the existing Maintenance Services Agreement (MSA) with Yunex, LLC to cover traffic signal maintenance costs.

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

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

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8 REGULAR CITY COUNCIL AND HOUSING
AUTHORITY*
Agenda May 5, 2026
PUBLIC HEARINGS:
(Pursuant to Resolution No. 05-55, Public Hearings begin at 7:00 p.m.)

1. CALL FOR REVIEW OF THE APPROVAL OF SPECIAL USE PERMIT (PGSH-24-0002) TO ALLOW A SOBER LIVING HOME WITH SIX OR FEWER RESIDENTS TO BE LOCATED AT 1601 BAKER STREET
26-205
RECOMMENDATION:

Staff recommends the City Council:

1. Find that Project (permit) is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15268 (Ministerial Projects) and 15301 (Existing Facilities).

2. Adopt a resolution upholding the Planning Commission ’s decision to uphold the Hearing Officer ’s issuance of Special Use Permit (PGSH-24- 0002) to allow a sober living home with six or fewer persons (not counting the house manager) at 1601 Baker Street.

Agenda Report

1. Draft Resolution

2. Hearing Officer Memorandum

3. Final Decision Memorandum

4. Call Up Review January 7, 2026

5. Hearing Officer Public Comments

6. Plans

7. Planning Commission Resolution

8. Planning Commission Minutes

9. Planning Commission Public Comments

10. Call Up Review March 2, 2026
Attachments:

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9 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 2026

2. FISCAL YEAR (FY) 2026-2027 ANNUAL ACTION PLAN IDENTIFYING

FUNDING PRIORITIES FOR THE COMMUNITY DEVELOPMENT

BLOCK GRANT ( CDBG) AND HOME INVESTMENT PARTNERSHIPS

GRANT (HOME) PROGRAMS
26-230
RECOMMENDATION:

Staff recommends the City Council:

1. Hold a Public Hearing regarding the Fiscal Year (FY) 2026-27 Annual Action Plan.

2. Approve the recommended allocation of $1,053,867.31 for the FY 2026-27 Community Development Block Grant.

3. Approve the recommended allocation of $1,061,998.25 for the FY 2026-27 HOME Investment Partnerships Grant.

4. Adopt Resolution NO. 2026-xxx (Attachment 1) in order to:
a. Approve the FY 2026-27 Annual Action Plan
b. Authorize the City Manager, or the City Manager’s designee, to submit the FY 2026-27 Annual Action Plan to the U.S. Department of Housing and Urban Development.
c. Designate the City Manager, or the City Manager ’s designee, as the official representative of the City to administer the programs and to execute and submit all required agreements, certifications, and documents required by HUD, and execute all agreements and subrecipient agreements for the use of funds approved in the FY 2026- 27 Annual Action Plan.

Agenda Report

1. Draft Resolution

2. Draft Annual Action Plan

3. Public Service Grant Recommendations 26-27

4. CDBG Map
Attachments:

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Agenda May 5, 2026
OLD BUSINESS:

1. ADOPTION OF THE CITY OF COSTA MESA, CALIFORNIA ADDING CHAPTER IV, TRAP-NEUTER-RETURN, TO TITLE 3 OF THE COSTA

MESA MUNICIPAL CODE TO ESTABLISH A TRAP-NEUTER-RETURN

PROGRAM FOR COMMUNITY CATS
26-259
RECOMMENDATION:

Staff recommends the City Council adopt Ordinance No. 2026-XX adding Title 3 Animal Regulations of the Costa Mesa Municipal Code 3-171 to establish and regulate a Trap-Neuter-Return (TNR) program for community cats within the City of Costa Mesa.

1. TNR ordinanceAttachments:

2. CONTINUATION OF THE ADOPTION OF ORDINANCE AMENDING
CHAPTER III OF TITLE 15 OF THE COSTA MESA MUNICIPAL CODE

RELATING TO PUBLIC WORKS - DRAINAGE
26-276
RECOMMENDATION:

Staff recommends the City Council:

1. Adopt Ordinance No. 2026-XX, continued from the April 21, 2026 Council meeting, approving revisions to Chapter III of Title 15 of the Costa Mesa Municipal Code (Public Works-Drainage) to incorporate updated drainage impact fees, revise administrative provisions for fee collection, and align City code language with current state law and the City ’s adopted Storm Drainage Impact Fee Nexus Study.

2. Find that adoption of this ordinance is not a “project” under the California Environmental Quality Act, pursuant to CEQA Guidelines section 15378(b)(4) because it impliments fiscal activities or administrative actions that do not involve any commitment to a specific project or physical development.

1. Drainage Fee OrdinanceAttachments:

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11 REGULAR CITY COUNCIL AND HOUSING
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Agenda May 5, 2026
NEW BUSINESS:

1. ARTS COMMISSION ANNUAL REPORT 26-214
RECOMMENDATION:

Staff recommends the City Council:

1. Receive and file the Arts Commission annual report (Attachment 1).

1. Arts Commission Presentation to City Council

2. Arts & Culture Master Plan

3. Art in Public Places Report

4. ACMP Optional Programs and Goals

5. Arts Commission Budget Recommendation Memo
Attachments:

ADDITIONAL COUNCIL /BOARD MEMBER COMMITTEE REPORTS, COMMENTS, AND

SUGGESTIONS

ADJOURNMENT

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12 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-261 Meeting Date: 5/5/2026
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.

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13 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-268 Meeting Date: 5/5/2026
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: Marisela Maldonado, Jose Antonio Ortiz, Debra Von Trapp, RDK Holdings LLC.

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14 CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-233 Meeting Date: 5/5/2026
TITLE:

ADOPTION OF WARRANT RESOLUTION
DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: MARK KHOU, BUDGET & PURCHASING MANAGER
CONTACT INFORMATION: MARK KHOU, BUDGET & PURCHASING MANAGER AT (714) 754-5141
RECOMMENDATION:

City Council approve Warrant Resolution No. 2753.

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. 26-08 On Cycle for $4,107,878.48, and City operating expenses for $4,533,923.97.

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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-234 Meeting Date: 5/5/2026
TITLE:

PROPOSED BUSINESS IMPROVEMENT AREA (BIA) REAUTHORIZATION AND INTENTION TO

LEVY AN ANNUAL ASSESSMENT
DEPARTMENT: CITY MANAGER’S OFFICE
PRESENTED BY: HADASSA JAKHER, ASSISTANT TO THE CITY MANAGER CONTACT INFORMATION: HADASSA JAKHER, ASSISTANT TO THE CITY MANAGER (714) 754-4885
RECOMMENDATION:

Staff recommends the City Council:

1. Approve the 2025-26 Annual Report for the Business Improvement Area (BIA) (Attachment 1).

2. Receive and file the audited financial report for Fiscal Years Ended June 30, 2024, and June 30, 2025 (Attachment 2).

3. Adopt Resolution 2026-xx, declaring the City’s intention to levy an annual assessment for Fiscal Year 2026-27 for the Business Improvement Area, covering certain Costa Mesa hotels and motels and setting the time and place for a Public Hearing on the proposed annual assessment Attachment 3).

BACKGROUND:

California’sParking and Business Improvement Area Law of 1989 (Streets and Highways Code §§ 36500, et seq.) enables cities to impose an assessment fee on businesses within an area designated by the City.

On July 5, 1995, the Costa Mesa City Council adopted Ordinance No. 95-9 to establish a Business Improvement Area (BIA) for the purpose of assisting the hotel and motel industry in its promotion of tourism within the city. The City Council authorized the City Manager to enter into an agreement with the Costa Mesa Tourism and Promotion Council to develop and administer the BIA. In 2001, the Costa Mesa Conference & Visitor Bureau (CVB), now known as Travel Costa Mesa (TCM), became the administrator of the BIA. In accordance with Travel Costa Mesa bylaws, Travel Costa Mesa’s Board of Directors is currently comprised of eleven (11) General Managers from the eleven (11) participating hotels and motels, one member of the City Council, and the City Manager’s designee.

Since November 2010, the City has annually levied a three percent (3%) special assessment on the

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79 File #: 26-234 Meeting Date: 5/5/2026
Since November 2010, the City has annually levied a three percent (3%) special assessment on the eleven (11) participating hotels, based on the sale of overnight guestroom stays (2,375 total available rooms) in the partner hotels. The levy is transmitted by the hotels to the City and ninety-nine percent (99%) of the assessment is remitted to TCM. The remaining one percent is retained by the City to offset administrative costs. The annual levy is separate from the City’sTransient Occupancy Tax (TOT).

ANALYSIS:

Intention to Levy the BIA Assessment at a Public Hearing The City must annually express its intent to levy the BIA assessment. Currently, the number of properties included in the BIA assessment levy is limited to the eleven (11) hotels and motels that have expressed an interest in participating in the program in the prior year, as detailed in the proposed Resolution of Intention (Attachment 3). Upon adoption of the Resolution of Intention, property owners of the participating hotels will be notified in writing within seven (7) days of the assessment renewal. Subsequently, the Resolution will be published in the Daily Pilot at least seven (7) days prior to the Public Hearing scheduled for June 2, 2026, at 7 p.m. City staff will also notify all the hotels and motels in the City not currently included in the BIA to allow them the opportunity to participate in the BIA.

At the Public Hearing, property owners will be provided with an opportunity to voice their opinions on the annual assessment, and/or address any concerns regarding the BIA. Additionally, the City Council will vote to adopt or deny the resolution levying an annual assessment for the upcoming fiscal year and make the ultimate decision as to the size of and the properties to be included in the BIA.

Upon the approval of the annual assessment at the Public Hearing, the three percent (3%) assessment is collected along with the City’sTransient Occupancy Tax (TOT) throughout the fiscal year. The hotels and motels included in the BIA are required to itemize the BIA levy as a separate assessment. The staff at Travel Costa Mesa manage the day-to-day activities and provide all services to administer the BIA.

Required Reporting Documents
Per the agreement between the City of Costa Mesa and Travel Costa Mesa and as required by Streets and Highways Code section 36533, Travel Costa Mesa is required to provide an annual report describing the programs and activities implemented during the previous fiscal year as well as the status of the programs and activities implemented during the current fiscal year (Attachment 1).

According to the report, there are no proposed changes to BIA or other sources of contributions other than the annual assessment. TCM has various planned improvements and activities for the upcoming fiscal year, detailed below. The City Council may approve the report as filed or modify the report and approve it as modified. Once the City Council approves the report, it may adopt the resolution of intention to levy the annual assessment.

Furthermore, in accordance with the agreement between the City and Travel Costa Mesa, the annual

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80 File #: 26-234 Meeting Date: 5/5/2026
Furthermore, in accordance with the agreement between the City and Travel Costa Mesa, the annual audits for Fiscal Years Ended June 30, 2024, and June 30,2025, have been completed by Crowe LLP, an independent auditor, and paid for by assessment funds. The audits are intended to ensure that the assessment revenue is expended for public purposes as specified within the resolution and that no expenditure is made in a manner contrary to the agreement. Staff requests the City Council receive and file the independent audit (Attachment 2).

Highlights of the 2025-2026 Fiscal Year
Travel Costa Mesa continues its dedication to showcasing the City of Costa Mesa as the City of the Arts and further enhancing the City’s brand as a premier destination in Orange County.

In the first half of the fiscal year and at calendar year-end, occupancy rates and average daily rates grew, resulting in an overall increase in RevPAR (revenue per available room). In the calendar year 2025, the occupancy rate in the Costa Mesa hotels was 76.5%, with an average daily rate of $177.12.

This fiscal year was also marked by elevated branding through authentic storytelling, highlighting Costa Mesa’srole as a coastal-adjacent cultural hub. Paid TCM campaigns drove more than 13,000 attributed room nights and generated $9.1 million in enriched hotel revenue. Average length of stay increased 22% year over year. A TripAdvisor brand lift study also demonstrated meaningful gains in awareness among high-intent travelers ages 18-34, a critical audience for sustained growth.

Upcoming projects and renovations include The Westin South Coast Plaza, due for completion in 2027 and the Residence Inn Costa Mesa Newport Beach, due for completion in late 2026. TCM also plans to launch a new website in June 2026, a FIFA 2026 partnership with Expedia for the upcoming FIFA World Cup.

ALTERNATIVES:

City Council may choose to deny the resolution of intention, which will prevent the public hearing from taking place to consider levying an annual assessment for the upcoming fiscal year.

FISCAL REVIEW:

Based on the audit report, Travel Costa Mesa’scash equity as of June 30, 2025 totaled $2,647,036.

Furthermore, the projected total revenue for the current fiscal year is forecasted at $3.3 million, according to the 2025-26 Annual Report. As of February 2026, BIA funds have recorded $2.3 million in revenues.

The City receives one percent (1%) of the BIA revenue/assessment as partial reimbursement for its collection and administrative costs. The one percent (1%) allocated to the City for reimbursement is estimated at approximately $33,000 for fiscal year 2025-26. The primary expenses in fiscal year 2025 -26 were:
· 58% on Marketing Expenses
· 26% on Employee Expenses
· 9% on Administrative Expenses

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81 File #: 26-234 Meeting Date: 5/5/2026
· 7% on Sales-Related Expenses
Beginning in 2014, Travel Costa Mesa had also provided “CommunityEvents Programming”funding to the City, under a Professional Services Agreement (PSA). This $164,000 from the agreement supported community-wide marketing and community events that attract visitors to Costa Mesa. Due to the COVID-19 pandemic restrictions on large gatherings, the “Community Events Programming” funds were not available to the City during Fiscal Years 2020-21, 2021-22, and 2022-23. Travel Costa Mesa reinstated the funding in Fiscal Year 2023-24. However, during Fiscal Year 2025-26, the Travel Costa Mesa Board of Directors voted to discontinue this funding to the City.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This item supports the City Council’scontinuous efforts to promote the City of Costa Mesa for its rich and vibrant community that offers many attractions for residents, visitors, and businesses.

CONCLUSION:

Adoption of the resolution of intent is the initial step in the reauthorization of the BIA assessment.

State law mandates the specific procedure to be followed in the establishment of such an area. Staff will make a presentation to the City Council on the implementation of the BIA assessment at the public hearing on June 2, 2026; however, the City Council must approve the annual report and the proposed resolution of intention before the hearing can be scheduled to consider the levying of an annual assessment.

Therefore, staff recommends the City Council:

1. Approve the 2025-26 Annual Report for the Business Improvement Area (BIA) (Attachment 1).

2. Receive and file audited financial report for Fiscal Years Ended June 30, 2024, and June 30, 2025 (Attachment 2).

3. Adopt Resolution 2026-xx, declaring the City’s intention to levy an annual assessment for Fiscal Year 2026-27 for Business Improvement Area covering certain Costa Mesa hotels and motels and setting the time and place for a public hearing on the proposal (Attachment 3).

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82 ANNUAL
REPORT
2025-2026
Attachment 1
83 84

T ABLE OF

CONTENTS
President’s Message ....... 4
Funding Source ....... 6
Lodging & TCM Hotel Partners ....... 8
Travel Trends ....... 9
U.S. Travel Association ..... 10
Visit California ..... 12
Marketing ..... 14
Campaigns ..... 18
Social Media .... 20
Public Relations .... 22
Group Sales .... 26
Travel Costa Mesa Leadership .... 30
85 President’s
Message
Walt Disney once said, “Times and conditions change so
rapidly that we must keep our aim constantly focused on the future.” That was deﬁnitely true over the past year, as tourism forecasts shifted just as quickly as the reports that created them. However, Travel Costa Mesa (TCM) worked diligently to stay focused on a strategic goal of increasing visitation, raising awareness for the destination, and expanding group
opportunities and leads.

This annual report highlights the innovation and creativity as the organization continues to drive awareness of the City of the Arts®, growth in group room nights, occupancy, average daily rate, and average length of stay.

The U.S. hotel forecast for 2026 calls for a relatively ﬂat increase in occupancy and a 1% increase in average daily rate,
according to Tourism Economics. State of California: visits in 2026 are forecast to increase by 1.7%, totaling 276.1M, and visitor spending by over 4%, totaling $165.2B.

TCM’s ﬁrst half of the ﬁscal year, as well as calendar year-end results, showed growth for its partners in both occupancy and average daily rate, leading to an increase in overall RevPAR. The second half of the ﬁscal year is forecasted to remain consistent. As FIFA26 World Cup™ arrives in June, expectations for compression from the LA market inspire optimism.

As we near the conclusion of the current ﬁscal year, our primary focus is on managing and completing large-scale projects. These include initiatives such as the comprehensive redesign of our website and the planning and execution of our upcoming spring and summer marketing campaigns. These projects are critical to our strategic goals and require careful coordination and resource allocation to ensure their successful completion.

We sincerely appreciate the local businesses that collaborate with TCM to boost the city's tourism. Our partner hotels support 100 percent of the programming, allowing our content to reach a broad audience.

TCM continues to explore new opportunities to expand in the tourism industry, positively impacting the city's economy.

Our collective efforts have delivered measurable progress across key objectives - successfully elevating awareness of the City of the Arts®, driving meaningful growth in group room nights, and extending the 0486
overall average length of stay. These gains have
translated into steady increases in occupancy
and average daily rate, reinforcing both market
conﬁdence and long-term value. As we look
ahead, this momentum positions us to continue
strengthening demand, deepening
engagement, and building on a foundation of
smart, balanced growth that supports the
destination’s economic vitality.

Paulette Lombardi-Fries
President

KEY OBJECTIVE
Increase brand awareness for the
city of Costa Mesa as a desirable,
overnight, leisure Orange County
destination.

VISION STATEMENT
Travel Costa Mesa is the engaged destination
marketing leader, supporting and selling the
city’s distinct visitor brand experiences, and
advocating community tourism beneﬁts.

MISSION STATEMENT
Travel Costa Mesa enhances and promotes the
destination brand experience, further increasing
visitor spending for industry and community
economic viability, sustainability, and quality of life.

SALES OBJECTIVE
Increase brand awareness and new group
room nights for the city of Costa Mesa as the
preferred Orange County destination ideal for
small to mid-size business that increases the
economic beneﬁts throughout the city.

In 1995, Travel Costa Mesa was the second tourism organization formed as a nonproﬁt corporation to market the city of Costa Mesa as a desirable, leisure overnight destination in Orange County.

Drive demand for leisure travel and visitation to Costa Mesa Increase social media followers and engagement
Increase awareness, earned media for Costa Mesa through PR efforts Grow group sales with deﬁnite group night bookings and increase awareness campaigns TCM GOALS FOR FISCAL YEAR ENDING JUNE 2026
0587
Travel Costa Mesa is fully funded through
the Business Improvement Assessment
(BIA), which is collected by the 11 Costa
Mesa partner hotels listed in this annual
report. Each hotel collects a 3% levy from
overnight guests (2,375 total available
rooms). All of the Transient Occupancy Tax
(TOT) collected by the City of Costa Mesa
goes to its general fund, and the city
keeps 100% of it.

Business Improvement Assessment (BIA)
Business owners within the BIA program must submit their assessments to the Costa Mesa City Finance Department monthly. New hotels and motels interested in participating in the BIA should contact both the City of Costa Mesa and TCM. This is a voluntary program for hotel partners.

Fiscal Year 2025-2026 Forecast
For the current ﬁscal year, TCM forecasts BIA revenue to come in slightly above the forecasted $3.298M. As of February 2025, BIA funds total $2.3 million.

Investment and Reserve Policies
In FY 2025-2026, TCM established a four-person subcommittee to oversee the investment of organizational reserves, maintained at a level exceeding six months of operating expenses to support long-term ﬁnancial stability. Additional funds outside of the reserves will be used to fund special projects.

In September 2025, TCM reserves retained a qualiﬁed external investment management ﬁrm to oversee invested assets in accordance with the board-approved policy.

Allocation of Overages in BIA
Any BIA overage that TCM receives is deposited into TCM’s bank reserves, ensuring surplus funds are prudently managed and available for future programming, unforeseen expenses, or strategic initiatives that beneﬁt the organization.

Funding Source
0688
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
FY 2025-26FY 2024-25FY 2023-24FY 2022-23

BIA REVENUE
$3.2M
+39% YOY
+3.2% YOY +0% YOY
$3.3M $3.3M
Forecast:
$3.298M

MARKETING
58%
26%
9%
7%

EMPLOYEE EXPENSES

PRIMARY EXPENSE

PROJECTIONS
2025 - 2026

ADMINISTRATIVE
SALES
Employee expenses include salaries, payroll taxes, 401(k) contributions, and health insurance premiums
The following represents the primary expense
projections for the current ﬁscal year:

Marketing expenses include SEO, PPC, content marketing, email and online marketing, advertising services, and website hosting
Administrative expenses include conference and meeting registrations, business insurance, audit services, lease payments, and travel
Sales expenses include conference and meeting registrations for the sales executive, tradeshows, memberships, familiarization trips, site visits, CRM, travel, and group incentives 0789
Lodging & TCM
Hotel Pa/r.alttners

LODGING ADDRESS MANAGEMENT COMPANY PROPERTY OWNER
Avenue of the Arts Costa
Mesa, A Tribute Portfolio
Hotel
3350 Avenue of
the Arts
Costa Mesa, CA 92626
Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92626
Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92626
Ayres Hotel Costa Mesa 325 Bristol Street
Costa Mesa, CA 92626
Newport Country Inn
& Suites, Inc.
355 Bristol St., Suite A
Costa Mesa, CA 92626
Newport Country Inn
& Suites, Inc.
355 Bristol St., Suite A
Costa Mesa, CA 92626
Best Western Plus
Newport Mesa Inn
2642 Newport Blvd.

Costa Mesa, CA 92627
James Hsuen
& Shang-Pu Lee
2642 Newport Blvd.

Costa Mesa, CA 92627
Crowne Plaza 3131 Bristol Street
Costa Mesa, CA 92626
Bright Bristol Street, LLC
3131 Bristol Street
Costa Mesa, CA 92626
Bright Bristol Street, LLC
3131 Bristol Street
Costa Mesa, CA 92626
Hilton 3050 Bristol Street
Costa Mesa, CA 92626
Remington Lodging & Hospitality
LP 14185 Dallas Parkway
Suite 1100 Dallas, TX 75254
Ashford TRS CM LLC
14185 Dallas Parkway
Suite 1100
Dallas, TX 75254
Hampton by Hilton Costa
Mesa Newport Beach
2070 Newport Blvd.

Costa Mesa, CA 92627
Narendra B. Patel
2070 Newport Blvd.

Costa Mesa, CA 92627
Marriott 500 Anton Blvd.

Costa Mesa, CA 92626
Starwood Capital Group
591 West Putnam Avenue
Greenwich, CT 06830
HEI Hotels & Resorts
101 Merritt 7 Corporate Park,
1 st Floor Norwalk, CT 06851
OC Hotel Costa Mesa 2430 Newport Blvd.

Costa Mesa, CA 92627
SAI KSP INC.
11556 Manchester Way
Porter Ranch, CA 91326
Sanjay Panchal
11556 Manchester Way
Porter Ranch, CA 91326
Ramada Inn & Suites 1680 Superior Ave.

Costa Mesa, CA 92627
B.D. Inn Inc./Ramada Ltd.
1680 Superior Ave.

Costa Mesa, CA 92627
Residence Inn by Marriott 881 Baker Street
Costa Mesa, CA 92626
Marriott International
10400 Fernwood Rd.

Bethesda, MD 20817
Legacy Strata
11301 West Olympic Blvd.
#121-467
West Los Angeles, CA 90064
The Westin South
Coast Plaza
686 Anton Blvd.

Costa Mesa, CA 92626
Host Hotels & Resorts
6903 Rockledge Dr.

Suite 1500
Bethesda, MD 20817
Secon Properties
3315 Fairview Rd.

Costa Mesa, CA 92626
0890
Travel Trends
As we review the upcoming calendar year, American travel sentiment remains under close observation. One of the tools TCM uses is the State of the American Traveler survey from Future Partners. A survey conducted in mid-January included 4,000 leisure travel respondents from four regions of the country. Overall, Americans remain cautious about the economy but are committed to travel, with 34.8% saying now is a good time to spend.

Additionally, 58.5% plan to prioritize travel in the next three months, up 4.3 points since January 2025. Travel budgets have increased as are trip volume. For 2026, the projected number of trips is 4, up from 3.7 last year. The overall travel budget is over $6,400, a record.

Key Takeaways
Anticipated Leisure Travel Trends (2022–2026)
Average Number of Trips Per Year
Maximum Anticipated Travel Budget
(trip is de/f_ined as 50+ miles from home)
Trend: Strong upward growth in travel spending expectations Trend: Steady year-over-year growth in planned trips
Travelers plan to take ~25%
more trips from 2022 to 2026
Maximum travel budgets
increase by ~55% over the
same period
Budget growth is outpacing trip
growth, suggesting:

Higher travel costs
Preference for
premium experiences
Inﬂation impact
0 1
2 3
4 2022 2023 2024 2025 2026
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2022 2023 2024 2025 2026
$4,150
$4,500
$5,200
$5,900
$6,453

3.2 3.4 3.6 3.8 4.0
0991
10 U.S. Travel Association
TCM is a member of the U.S. Travel Association, a non-proﬁt representing all travel sectors. It serves as the industry's voice, addressing key issues and promoting travel as vital for economic growth. TCM beneﬁts from reporting tools, education, networking, and other resources.

Performance: Build a Future-Ready Association
2026 Core Initiatives
Identity: Elevate Travel’s Stature
Advocacy: Advance Policies That Enable Growth
Value: Strengthen Member Return on Investment
Reducing friction and preventing damage requires promoting pro-growth policies that boost international inbound travel, stopping actions that deter visitors, and building support among policymakers.

Modernize infrastructure, security, and regulations to ensure the travel system remains globally competitive.

Operating as a disciplined, high-performing association—modernizing systems, focusing resources where they deliver impact, and building a resilient team able to execute at scale.

Delivering actionable intelligence, connections and programs that help members navigate change and grow—through timely data, high-impact gatherings and a more personalized, modern member experience.

Shape the perception of travel in America and globally, engaging policymakers, partners, and the public to ensure travel’s impact is considered before decisions are made./uni00A0
$
92 U.S. Travel Forecast-Fall 2025
Domestic leisure travel remains strong, with 1.9 billion trips expected in 2025, up 2.0% year over year. The domestic leisure segment boosts travel spending, with a forecasted gain of 3.3% in 2025 to reach $906 billion. Business travel is forecasted to reach $286 billion in 2025 and is set to lead domestic growth between 2027 and 2029. Group travel will grow at a faster rate than transient travel, averaging 4.3% versus 4.0% per year. International visits are projected to return to 2019 levels by 2029 (81.9 million visits), with growth driven by major events like the 2026 World Cup, America 250 celebration, and the 2028 Olympics.

Source: Tourism Economics, U.S. Travel Association
Source: Tourism Economics, U.S. Travel Association
U.S. hotel performance shows
modest overall growth. Supply is
expected to steadily increase
through 2026, while demand
dipped in 2025 but is forecasted
to slightly rebound in 2026.

Occupancy continues to decline
gradually, ADR growth remains
moderate, and RevPAR is
projected to recover modestly in
2026 after a dip in 2025.

U.S. Hotel Forecast
Domestic Person Trips in the U.S. (Millions)
Domestic Trips
U.S Inbound Visitors (Thousands)
International Trips
As of January 2026
Year-over-year % change
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
TOTAL VISITS 79,442 19,212 22,280 50,771 66,350 72,390 67,866 70,404 74,382 78,120 81,900 % Change
year-over-year -75.8% 16.0% 127.9% 30.7% 9.1% -6.3% 3.7% 5.6% 5.0% 4.8% % Change
relative to 2019
24% 28% 64% 84% 91% 85% 89% 94% 98% 103%

FORECAST
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
TOTAL 2318.0 1582.0 2021.0 2252.3 2307.6 2359.4 2403.3 2450.4 2508.6 2567.4 2624.3 % change -31.8 27.8 11.4 2.5 2.2 1.9 2.0 2.4 2.3 2.2

BY PURPOSE
Business 463.9 181.3 249.5 370.9 413.1 436.0 442.4 451.2 463.3 475.4 487.2 % change -60.9 37.6 48.6 11.4 5.5 1.5 2.0 2.7 2.6 2.5
Leisure 1854.1 1400.6 1771.4 1881.4 1894.5 1923.3 1960.9 1999.1 2045.3 2092.0 2137.1 % change -24.5 26.5 6.2 0.7 1.5 2.0 1.9 2.3 2.3 2.2

FORECAST
2024 Actual 2025 Actual 2026 Forecast
Supply 0.5% 0.7% 0.7%
Demand 0.6% -0.5% 0.4%
Occupancy 63.0% 62.3% 62.1%
ADR 1.8% 0.9% 1.0%
ReVPAR 1.9% -0.3% 0.6%
1193
Visit California
The state’s premier destination marketing organization, Visit California (VCA), has secured a six-year extension with over 98% industry approval to continue promoting visitation to the Golden State. VCA remains committed to investing in innovative initiatives that elevate the economic impact of tourism, driving growth and showcasing California's unparalleled appeal.

Excitement for FIFA26 World Cup™ is building, with fourteen matches scheduled in California at SoFi and Levi's Stadium in the San Francisco Bay Area. Additionally, LA28 and the Paralympic Games will take place across various locations in the state, including events in Orange County and Long Beach, further highlighting California's prominent role in upcoming major international sports.

According to Tourism Economics’ October forecast, California’s total visitor volume is projected to increase by 0.8% in 2025, adding approximately 2.1 million visits, bringing the total to 271.6 million.

Visitation growth is expected to accelerate to 1.7% in 2026. Visitor spending is forecasted to reach $158.6 billion in 2025 and grow an additional 4.2% to $165.2 billion in 2026, reﬂecting continued gains in travel demand and economic impact statewide.

Consumer sentiment regarding international leisure travel has stabilized recently in Visit California’s 13 priority markets. However, cost remains the main barrier. Year over year, intent to visit the U.S. and California has declined, especially among Canadian (political tensions, trade, and the weak Canadian dollar) and European markets.
264.1
2023 2024 2025 2026 2027 2028 2029

1.9% 2.0% 0.8% 1.7% 2.6% 2.6% 2.4%
269.5 271.6 276.1 283.3 290.5 297.6
Forecast
California Visitation Forecast
The chart below shows the current visitation
forecast (domestic and international) and
annual growth rate.

Total Visitation (millions) YOY% Change
2023 2024 2025 2026 2027 2028 2029

7.2% 3.0% 0.8% 4.2% 4.5% 4.1% 4.3%
$152.7 $157.3 $158.6 $156.2 $172.6 $179.6
$187.3
Forecast
California Spending Forecast
The chart below shows the current travel
spending forecast (domestic and international)
and annual growth rate.

Total Spending (billions) YOY% Change
1294
Costa Mesa Hotel Performance Update
In the ﬁrst half of TCM's ﬁscal year and at calendar year-end, occupancy rates and average daily rates grew, resulting in an overall increase in RevPAR. The new calendar year is off to a steady start, with occupancy slightly up, driven by group business. As the summer looks promising, renovations by some of our partners may displace some business towards the end of the calendar year.

California Airport Numbers
California airport throughput (number
of passengers screened under
expedited and standard screenings)
decreased 2% to 215.6 million in 2025
compared to 2024. Trafﬁc counts
represent 10 commercial airports, which
include domestic and international
passenger trafﬁc. The domestic
year-over-year change accounts for a
1% decrease, and international
passenger trafﬁc remained unchanged.

Airline passenger trafﬁc at John Wayne
Airport, Orange County, increased by

2.5% in 2025, reaching over 11.3 million
passengers. October, November, and
December saw the largest percentage
gains during the year. The airport ranks
#1 in Customer Satisfaction among
large airports in the J.D. Power 2025
North America Study for the second
consecutive year./uni00A0
13 TOTAL
2025 2024 YOY %
change
January 15,668,923 15,697,415 0%
February 14,341,849 14,953,150 -4%
March 17,434,379 17,670,880 -1%
April 17,734,772 17,740,047 0%
May 18,994,856 19,113,002 -1%
June 19,954,080 19,957,375 0%
July 20,646,984 20,822,207 -1%
August 19,406,379 19,902,714 -2%
September 17,474,756 18,034,193 -3%
October 18,813,147 18,969,181 -1%
November 17,015,175 17,455,654 -3%
December 18,184,377 18,785,264 -3%
YTD * 215,669,677 219,101,082 -2%
*As of Feb. 4, 2026 reported to VCA by individual airports within the state. Monthly ﬁgures may not sum to YTD totals due to data revisions.

JAN - DEC 2025 OCCUPANCY AVERAGE

DAILY RATE
United States 62.3%
-1.2% LY
$160.54
+.09% LY
California 67.1%
+.3% LY
$190.74
+1.2% LY
Orange County 72.2%
+.8% LY
$209.80
+.9% LY
Costa Mesa
CoStar Group

76.5%
+1.2% LY
$177.12
+1.3% LY
95 Marketing
Fiscal Year 2025–2026 was a deﬁning year for Travel
Costa Mesa as we elevated the city’s identity through
authentic storytelling. By highlighting its makers,
performing arts, signature events, culinary scene,
and creative community, we showcased Costa Mesa
from the inside out. Embracing our role as a
coastal-adjacent cultural hub strengthened our
competitive position and increased awareness
among high-value travelers.

Storytelling served as the throughline across paid,
owned, and earned channels. From brand
campaigns and creator partnerships to media
relations and social content, each effort worked
together to present a cohesive narrative rooted in
accessibility, creativity, and unexpected richness. This integrated approach ensured that Costa Mesa was
not only seen but understood.

Paid campaigns drove more than 13,000 attributed
room nights and generated $9.1 million in enriched
hotel revenue. Average length of stay increased 22%
year over year, from 2.2 to 2.7, signaling deeper
engagement as visitors explored more of the
destination’s experiences and cultural touchpoints.

A TripAdvisor brand lift study also demonstrated
meaningful gains in awareness among high-intent
travelers ages 18–34, a critical audience for sustained growth.

Expanding visibility through targeted engagement
with key segments, including LGBTQ+ travelers, led
to impactful earned media and strong audience
engagement. These efforts boosted Costa Mesa’s
visibility, brought economic beneﬁts, and
strengthened its reputation as a vibrant, welcoming,
experience-rich destination.

Key Initiatives
Travel Costa Mesa implemented a focused strategy designed to sustain awareness, drive consideration, and convert visitation when travel intent is high. Each initiative was rooted in research, data, and aligned with measurable economic impact for the city.
1496
Always-On Paid
Marketing Strategy
Storytelling Across the
Traveler Journey
Leveraging the
Visit California Co-Op
A key priority this ﬁscal year was implementing an
always-on paid media approach anchored by two
branded campaigns. This structure enabled scalable
efforts and efﬁcient resource allocation based on
seasonal demand and identiﬁed need periods,
supporting both awareness-building and conversion.

Research indicates that TCM’s target travelers plan
their trips between two weeks and four months in
advance. Maintaining a consistent presence
throughout the year ensures Costa Mesa remains top
of mind during the inspiration, planning, and booking
phases of the travel journey.

Storytelling continued to guide all marketing
efforts across leisure, social, meetings, paid,
and earned media. By aligning messaging
across channels, we met audiences at every
stage of their journey while consistently
reinforcing Costa Mesa’s cultural depth and
unique experiences.

Fresh content, curated itineraries, and timely
promotion of events encouraged deeper
engagement and supported longer stays,
increasing the average length of stay to 2.7
days vs 2.2 the year prior. This integrated
approach strengthened our ability to attract
high-value visitors seeking meaningful
experiences while traveling.

Travel Costa Mesa maximized its Visit California co-op
partnership, extending our marketing reach by 25
percent. By aligning with the strength of the California brand while maintaining Costa Mesa’s distinct identity, we ampliﬁed awareness among high-intent travelers
and increased efﬁciency in reaching qualiﬁed
audiences.
1597
segments. These audiences show strong familiarity with Costa Mesa and present meaningful opportunities to increase visibility and drive visitation growth.

The key segments include the Luxury Traveler, Cultural Experiences Traveler, Urban and Routinized Traveler, and the LGBTQ+ Traveler. Each audience brings distinct motivations and travel behaviors, requiring tailored messaging and media placement aligned with their interests, habits, and preferred booking patterns.

While priorities vary, all segments share
commonalities: they seek memorable
experiences, value family time, and prefer
convenient planning. In California, shopping
and beach access heavily inﬂuence decisions,
highlighting Costa Mesa’s role as a coastal
cultural hub with top retail and lifestyle options.

Geographic targeting remained focused on
high-performing and high-potential markets.

Within Southern California, emphasis was placed
on Los Angeles, Palm Springs, the Inland Empire,
and San Diego. In ﬂy markets, Dallas, Las Vegas,
and Phoenix continued to serve as priority cities
for expanding overnight visitation and attracting
travelers from more than 500 miles away which
increased 2.7% over last year demonstrating how
Costa Mesa has gained audience in key ﬂy
markets.

Guided by the previous year’s comprehensive
audience study, TCM reﬁned its targeting
strategy to focus on ﬁve priority traveler
Key Audiences
1698
Website Results
1,112,964 sessions
1% increase year over year
1,033,614 users
13% increase year over year27.12% engagement rate
1% increase year over year
Feb. 2025 to Jan. 2026
Website Tra/f_f_i.ligac Drivers
Display 32.52% of total sessions
Referral 22.40%
Paid Search 19.45%
Direct 8.24%

Organic Search 5.27%
Website Top Geos:

Percentage of total users
California 22.25%
Colorado 5.72%
New York 5.56%
Texas 5.54%
Washington 3.15%
Website Top Pages:

Percentage of Views

11.04% Plan Your Visit

10.10% Hispanic Heritage Month (Blog)

7.15% Homepage

7.15% Costa Mesa Unlocked; Revealing
Experiences You Won’t Find Anywhere
Else (blog)

6.47% Pool Floats and Ocean Waves
Chase Sunshine in Costa Mesa (blog)
1799
18 Campaigns
Sun-Soaked Campaign
March 2025- August 2025
Sun-Soaked: A Season of Sensory
Discovery
The spring and summer brand
campaign, Sun-Soaked, invited travelers
to experience Costa Mesa as Southern
California’s best-kept secret — vibrant,
beach-close, and overﬂowing with ways
to awaken the senses.

Built around three messaging pillars —
sunshine, food, and activities — the
campaign highlighted the sights, smells,
and tastes that deﬁne a stay in our city.

Sun-Soaked positioned Costa Mesa as a
destination rich with energy and endless
sensory experiences.
49M+ Impressions
807K Website Sessions
16,851 Hotel Room Nights
Uncommon Ground Campaign
October 2025 – January 2026
Uncommon Ground
The second brand campaign, Uncommon
Ground, shifted the narrative from planning to
presence. In a world where travel can feel
overwhelming and overly curated, Costa Mesa
positioned itself as the antidote. It simply asks
you to arrive and discover what unfolds next.

Building on the bold creative approach
established in Sun-Soaked, this campaign
focused on culture, shopping, and shared
meals. From inspiring arts and distinctive retail
to gathering around the table with friends and
family, Uncommon Ground invited visitors to
experience Costa Mesa in a way that feels
natural, effortless, and richly rewarding.
18K+ Impressions
57K Website Sessions
11,359 Hotel Room Nights
100

11.04% Plan Your Visit

10.10% Hispanic Heritage Month (Blog)

7.15% Homepage

7.15% Costa Mesa Unlocked; Revealing
Experiences You Won’t Find Anywhere
Else (blog)

6.47% Pool Floats and Ocean Waves
Chase Sunshine in Costa Mesa (blog)
19 Trip Advisor, Always On
11 Miles from Everything Campaign
The TripAdvisor–branded hub campaign, 11
Miles From Everything, elevated awareness
of Costa Mesa as a culturally rich destination
that places visitors within easy reach of
everything they want to experience in
Southern California.

Through storytelling rooted in accessibility,
authenticity, and unexpected depth, the
campaign positioned Costa Mesa as a smart
and intentional choice. With vibrant arts and
culture, standout culinary experiences,
premier shopping, and beach proximity all
within minutes, the hub reframed the city
from a pass-through location to a central
home base for exploration. That boosted
brand awareness by 6.1% and showcased
the city as a place where visitors can
immerse themselves in local culture.

5.2M+ Impressions
14K+ Clicks
20K+ Branded Hub views
Meetings/Group Campaign Always On
ARTmosphere
The year-long meetings and group campaign,
ARTmosphere, was designed to increase
awareness of Costa Mesa as a compelling small to
mid-size meetings destination. The campaign
highlighted the city’s vibrant culture, positioning
meetings here as experiences infused with
creativity, energy, and inspiration.

Through a strategic mix of display advertising,
targeted email outreach, and retargeting,
ARTmosphere reached planners where they
actively seek ideas and venues. Placements with
CALSAE, Meetings Today, and Google Search and
Display ensured consistent visibility.

Google Search 65K+ impressions, 4K+ clicks
Google Display 992K impressions, 20K+ clicks
MPI Display 156K+ impressions, CTR: 0.12%
CAL SAE 60K+ impressions, average CTR: 0.58%
Meetings Today 303K+ impressions, average CTR: 0.18%
VCA Co-Op

5M+ Impressions
207K+ Clicks
15K Social Media
Engagements
$778K+ Total Economic
101
Social
Social-Driven Travel Decisions
For Gen Z and Millennial travelers, inspiration begins
with a scroll. Social platforms are not just sources of wanderlust, they are trusted planning tools that
inﬂuence where to go, what to do, and what is worth
the investment. Instagram and TikTok continue to
shape destination discovery, with everyday creators
serving as credible voices for recommendations,
itineraries, and honest reviews.

To meet this audience where they are, Travel Costa
Mesa partnered with 12 primarily micro-content creators representing diverse industries, interests, and cultural perspectives. With highly engaged audiences and relatable storytelling, their experiences in Costa Mesa delivered authentic, impactful content that resonated with today’s socially driven traveler.

INSTAGRAM
Follower Count:/uni00A0
23,067/uni00A0
(+19.31% YOY)/uni00A0
Engagement Stats:
4,544,632/uni00A0/uni00A0
(+37.14% YOY)/uni00A0
TIKTOK
Follower Count:/uni00A0
2,787/uni00A0
(+56.93% YOY)/uni00A0
Engagement Stats:
218,809/uni00A0/uni00A0

FACEBOOK
Follower Count:/uni00A0
7,996
(+0.33% YOY)/uni00A0
Engagement Stats:
12,044/uni00A0/uni00A0

LINKEDIN
Follower Count:/uni00A0
2,556/uni00A0
(+11.08% YOY)/uni00A0
Engagement Stats:
5,889/uni00A0/uni00A0
(+26.10% YOY)/uni00A0
20102
In-House Campaigns
Through a dedicated Creators Weekend in
partnership with the Black Travel Alliance, six
creators from across the country experienced
Costa Mesa ﬁrsthand, highlighting why the
destination belongs on the radar of Black
travelers.

The program generated 189 social posts,
videos, and stories, signiﬁcantly amplifying
awareness and extending Costa Mesa’s reach
to new audiences nationwide.

Travel Costa Mesa partnered with content
creators from key drive markets, including Los
Angeles and San Diego, as well as trusted voices
within the LGBTQ+ community, to authentically
showcase the destination’s welcoming and
inclusive spirit. Through curated experiences and
personal storytelling, these creators highlighted
the city’s vibrant culture, culinary scene,
shopping, and arts offerings while reinforcing
Costa Mesa as a place where all visitors can feel
seen, celebrated, and inspired to explore.

Top 5/uni00A0Performing Reels/uni00A0/uni00A0(Total as of March 2nd/uni00A02026) Total/uni00A0Impressions: 100,000/uni00A0
Total Views: 88,000/uni00A0
Total Views:/uni00A0685,062/uni00A0
Total/uni00A0Engagements:/uni00A012,853/uni00A0
Easy SoCal Road
Trip Destination:
492,204 Views
Third Places in
Costa Mesa:
433,303 Views/uni00A0
Coastal Cowboy
Itinerary in
Costa Mesa:
334,775 Views/uni00A0
Fun Date Ideas
That/uni00A0Aren’t/uni00A0
Dinner:
229,288 Views/uni00A0
Queer-Friendly
Itinerary in
Costa Mesa:
166,728 Views/uni00A0
Black Travel Alliance
Other In-House Campaigns
21103
Public Relations
How do you capture attention in a media landscape rapidly adapting to the rise of generative artiﬁcial intelligence? As trust in traditional search results declines, information seekers are increasingly turning to credible, human sources for answers they can rely on.

Public relations plays a critical role in this shift. As an intentional communications strategy, it delivers veriﬁed, expert-driven storytelling in an authentic and accessible voice. By building meaningful relationships with media and fostering community connection, public relations cuts through the noise, elevates Costa Mesa’s narrative, and earns the attention today’s travelers value most. 46 unique media
mentions/uni00A0
179 articles/uni00A0
329.86M estimated media
impressions/uni00A0
10/uni00A0content creators
hosted/uni00A0
5/uni00A0journalists
hosted
Travel Costa Mesa used the power of connection and
community to shine a light on Costa Mesa as a coveted travel destination./uni00A0Costa Mesa’s culture, location, and cuisine were recurring themes in earned media coverage./uni00A0Headlines like “This Southern California City is the New Go-To Hub for Family Travel”/uni00A0appearing on/uni00A0MSN.com/uni00A0and/uni00A0ProbetheGlobe.com/uni00A0touted the beneﬁts of Costa Mesa’s location within Southern
California. Costa Mesa’s unique cultural appeal was highlighted on television by/uni00A0Good Day LA, encouraging viewers to visit Costa Mesa over Spring Break to attend OC Japan Fair./uni00A0The New Yorker/uni00A0even called out Costa Mesa’s Mercado Gonzalez, calling it an “upscale Disneyland of a Mexican food hall.”/uni00A0/uni00A0 22104
Travel Costa Mesa saw clear results from a strategic initiative to promote business travel./uni00A0“Classic OC:

Bright Skies, and Even Brighter Meetings” appearing in/uni00A0SmartMeetings/uni00A0Magazine/uni00A0showed/uni00A0the value of Costa Mesa as an ideal location for/uni00A0meetings./uni00A0Meetings Today/uni00A0covered Costa Mesa as a group destination with print and digital articles titled “Costa Mesa Lures Meetings to Its Engaging ‘ARTmosphere.’”/uni00A0Modern Luxury/uni00A0took note of Costa Mesa’s hotel properties in its 2025 Luxury Travel Awards, and/uni00A0Small Market Meetings/uni00A0detailed how Costa Mesa’s culture stands out in Orange County./uni00A0/uni00A0 Travel Costa Mesa continued to leverage the strength of its welcoming community by hosting seven familiarization trips with writers, freelancers, and media professionals. These immersive experiences allowed storytellers to engage with the destination ﬁrsthand, resulting in authentic coverage grounded in personal experience.

Targeted outreach to LGBTQ+ journalists and content creators further elevated awareness and intent among LGBTQ+ travelers. Coverage from outlets including EveryQueer.com featured stories such as “15 Restaurants You Need to Try in Costa Mesa” and “Costa Mesa: Orange County’s New Queer Capital,” while QueerGirlTravel.com highlighted the destination in “Costa Mesa’s Gay Girls Guide,” reinforcing the city’s reputation as an inclusive and vibrant place to visit.

Meet Costa Mesa’s Business Culture
Bringing the story of Costa Mesa
23105
Current &
Upcoming Projects
As Travel Costa Mesa looks ahead,
several initiatives will further
strengthen our marketing
infrastructure, expand our reach,
and deepen our ability to measure
and communicate the city’s
tourism’s economic impact. Each
project reﬂects a strategic
investment in long-term
destination growth.

In June 2026, Travel Costa Mesa will launch a fully redesigned and modernized website, built to enhance user experience and ensure the destination remains competitive in an increasingly digital and AI-driven landscape.

The objective of the redesign is to optimize the visitor journey from initial inspiration through in-market engagement. The new platform will incorporate AI-optimized content capabilities, improved search functionality, and a ﬂexible architecture that enables the organization to quickly adapt messaging to seasonal priorities, events, and need periods. This investment ensures that Travel Costa Mesa remains top of mind and easily accessible to high-intent travelers seeking relevant and timely information.

The updated design will also provide greater long-term ﬂexibility, enabling the organization to leverage emerging technology and maintain best-in-class digital standards well into the future.

New Website
Launch: June 2026
24106
In June 2026, Southern California will welcome the FIFA World Cup, creating a signiﬁcant opportunity to capture incremental visitation tied to this global event. To strategically leverage the anticipated inﬂux of domestic travel, Travel Costa Mesa has partnered with Expedia on the “Come for Soccer, Stay for SoCal” campaign.

This initiative targets domestic travelers booking trips to Southern California during the tournament period. The campaign utilizes both onsite Expedia placements and offsite audience targeting to drive qualiﬁed trafﬁc to a dedicated Southern California hub page featuring Costa Mesa. Supporting efforts across owned channels and landing pages will further position Costa Mesa as an ideal place to extend a stay beyond match days. With LA28 on the horizon Costa Mesa is well positioned as a hub with easy access to all that SoCal has to offer during the games.

At the close of 2026, Travel Costa Mesa will once again engage Tourism Economics to produce an updated Economic Impact Report for calendar year 2025. The previous report, completed for 2023, provided valuable data that reinforced the role tourism plays in supporting Costa Mesa’s local economy.

The 2025 report will analyze paid marketing performance, hotel booking data, credit card spend, mobile location data, and government and census data to calculate the total economic contribution of tourism to the city. This comprehensive analysis offers third-party validation from respected economists and ensures transparency in measuring the return on investment of tourism marketing efforts.

The completed report will be shared with city leadership, hotel partners, board members, and regional stakeholders, reinforcing the measurable value that visitor spending brings to Costa Mesa’s businesses, workforce, and broader community.

FIFA 2026 Partnership with Expedia
Campaign Period: February 2026– July
Tourism Economics 2025 Impact Report
25107
Group Sales
Travel Costa Mesa’s competitive advantage lives beyond the ballroom./uni00A0World-class arts and culture, premier boutique and luxury shopping, and a vibrant culinary scene—with the Paciﬁc Ocean just minutes away—create an elevated experience for meeting attendees. In addition to its close proximity to John Wayne Airport, the city is highly walkable, allowing guests to easily explore its many attractions on foot. Consistently strong hotel service ensures groups are supported with the
professionalism, responsiveness, and attention to detail planners expect./uni00A0This combination positions Costa Mesa as the preferred destination in Southern California for small- to mid-size-group business.

According to the February 2026 Northstar Meetings Group + Cvent PULSE Survey, group meeting expectations are tightening. Only 23% expect to produce more meetings in 2026, the lowest growth outlook in three years. Forty percent anticipate attendance declines of at least 10%. While face-to-face meetings are still seen as valuable and strategic, most are funded as cost centers rather than investments.

Competitive Sales
Trends
2%
29%
23%20%
18%
5%
3%
Not-for-Proﬁt/Association/NGO
Third Party/Independent Planner
Professional Conference Organizer/Event Agency
In-House Corporate Planner
Exhibitions/Trade Show Organizer
Government
Sports
No/r.altthstar Meetings Group + Cvent Survey
January 20-February 2, 2026
Markets Meeting Planner Surveyed Markets
% of Total 472 Planner Responses
26108
The organization will attend 14 nationwide tradeshows
this ﬁscal year to boost awareness of Costa Mesa among
meeting planners. The main challenge facing TCM is the
lack of recognition of the city's location. These tradeshows aim to increase the number of group leads for our
partners. These efforts contributed to the generation of 219 leads and 8,259 deﬁnite room nights booked at our
partnering hotels. Familiarization (FAM) programs
enhanced destination visibility by highlighting the value and experiences available to groups meeting in the city.

TCM conducted 18 site visits in the ﬁrst half of the ﬁscal year, during which a hotel tour was held with a client for a current group opportunity or a future lead, coordinated either by hotel sales teams or arranged directly with
planners based on their needs.

TCM Stats
FY 25.26 - TCM Stats
Q1 & Q2
# OF DEFINITE

ROOM NIGHTS
BOOKED
# OF LEADS

RECEIVED
# OF

SITE VISITS

CONDUCTED
(AS OF 2/28/26)

# OF

FAMILIARIZATION
TOURS
(AS OF 2/28/26)
219 8,259 18 8
27 43
52 58
68 57
48 42
34 Fewer Planners Will Produce More Meetings Next Year
Do you expect to produce more meetings in 2026 than you did in 2025? YES NO
More meetings are coming, but fewer than the previous three years # of Planners
February ‘26
February ‘25
February ‘24
February ‘23
109
FY 25.26 - TRADESHOWS
14 Shows A/t_t.ligaended

MONTH DATES EVENT LOCATION SNAPSHOT
July-2025 8-9 Lamont Associate
Exchange Summit
Arlington TX Corp., & association,
Govt. Planners
August-2025 26-29 HPN Global Partner
Conference
Las Vegas, NV Corp., & association,
Govt. Planners
September-2025 16-18 Small Market Meetings Buffalo, NY Corp., & association, Govt. Planners
October-2025 27-29 Connect West Lake Tahoe, CA Corp., & association, Govt. Planners
November-2025 12-13 Visit California Meetings
Road Show
Chicago & Kansas
City
Corp., & association,
Govt. Planners
December-2025 1-3 Destination West
Northstar
College Station, TX Corp., & association,
Govt. Planners
December-2025 16-17 Associations West
Seasonal Spectacular show
Sacramento, CA CA & Oregon
Association Planners
Feb-2026 4-6 IPEC-Intl Planner Edu
Connect
Chandler, AZ Association, corp.,
incentive, not
associated with 3rd
party
April-2026
13-16
19-22
27-30
Connect Spring
Marketplace
Destination West Northstar
HelmsBriscoe
Louisville, KY
Boulder, CO
Los Angeles
Corporate meeting
planners for +
Association meeting
planners U.S.

Corp., & association,
Govt. Planners
Corp., & association,
Govt. Planners
May-2026
13-16
17-21
27-30
Visit California Roadshow
ConferenceDirect Annual
Partner Meeting
Small & Boutique Meeting
Northstar
DC & Philadelphia
Houston, TX
Anchorage, AR
Corp., & association,
Govt. Planners
Corp., & association,
Govt. Planners
All market Meeting
Planners who focus
on 100 rooms peak
and lower
28110
Orange County Spo/r.altts Commission (OCSC)
New OC Hotel Inventory
Travel Costa Mesa maintains a strong
partnership with the Orange County Sports
Commission (OCSC), the primary driver of
sports-related group business in Orange County.

OCSC’s mission is to strengthen the region’s
economic, social, and cultural vitality through
sports tourism. Its members include OC Fair &
Event Center, Anaheim Ducks, City of Mission Viejo, OCVIBE, John Wayne Airport, Visit Dana Point, and Visit Anaheim.

Through the end of the second quarter of the current ﬁscal year, OCSC generated 6 leads, 7,941 potential room nights for Travel Costa Mesa, resulting in one conﬁrmed booking for 655 rooms. However, limited venue availability and ﬁeld restrictions within the city continue to present challenges in securing sports business but pose a great opportunity for the city.

The Westin South Coast Plaza
Total Hotel Renovation
• Late 2026
• Due for completion 2027
Residence Inn Costa Mesa Newport Beach
Full Room Renovation
• Begins mid-April 2026 – December 2026
• 1 building down at a time (8 rooms per building)
Road House Hotel (Anaheim)
Construction starting soon: A 6-story, 125-room hotel
located at 1730 S Clementine St., roughly a 20-minute
walk from Disneyland Resort. It will feature a rooftop
pool and bar.

Mariner’s Village (Dana Point)
While the two main harbor hotels (Dana House and Surf
Lodge) are targeted for 2027–2028, the commercial core
of the Dana Point Harbor Revitalization is slated for
completion by the end of 2026, featuring new waterfront retail and dining.

Nickelodeon Hotel & Resort (Garden Grove)
Opening TBD/estimated date 2028 - 500 rooms & 9,500
sq ft of meeting space.

Home2 Suites by Hilton (Irvine)
172 rooms under construction and due to deliver late 2026.

Hotel Renovations & OC Projects
Costa Mesa Hotel – Upcoming Renovations
29111
Lorem ipsum
30 EXECUTIVE COMMITTEE
Steve Yannarell CHAIRPERSON, GENERAL MANAGER, The Westin South Coast Plaza Susan O’Brien Moore VICE PRESIDENT, GENERAL MANAGER, Ayres Hotel Costa Mesa Sue Cooke TREASURER, GENERAL MANAGER, Residence Inn by Marriott Cecilia Gallardo-Daly SECRETARY, CITY MANAGER, City of Costa Mesa

DIRECTORS
Kevin Schjei GENERAL MANAGER, Avenue of the Arts, A Tribute Portfolio Hotel Naj Ekhlas GENERAL MANAGER, Best Western Plus
Annie Hsu GENERAL MANAGER, Crowne Plaza
Jeannie Blue GENERAL MANAGER - VP OF OPERATIONS, Hampton By Hilton Costa Mesa Newport Beach
Gisela Saarikoski GENERAL MANAGER, Hilton
Nimisha Solanki GENERAL MANAGER, OC Hotel Costa Mesa
Hugo Barba GENERAL MANAGER, Marriott
Patricia Obert GENERAL MANAGER, Ramada
John Stephens MAYOR, City of Costa Mesa

ADVISOR
Brian Chuan SENIOR DIRECTOR OF INTERNATIONAL & DOMESTIC MARKETS, South Coast Plaza
David Haithcock PRESIDENT & CEO, Costa Mesa Chamber of Commerce James Canﬁeld CEO, OC Fair & Event Center
STAFF
Paulette Lombardi-Fries PRESIDENT
Anne-Marie Schiefer VICE PRESIDENT OF MARKETING
Chris Nuccio CMP, DESTINATION SALES EXECUTIVE
Jessica Placentia OPERATIONS MANAGER
Jasmine Avalos SOCIAL MEDIA AND CONTENT MANAGER
Macie Rae Brady MANAGER OF PUBLIC RELATIONS
112
travelcostamesa.com
113

TRAVEL COSTA MESA

FINANCIAL ST ATEMENTS
June 30, 2025 and 2024
Attachment 2
114

TRAVEL COSTA MESA
Costa Mesa, California

FINANCIAL STATEMENTS
June 30, 2025 and 2024

CONTENTS
INDEPENDENT AUDITOR'S REPORT.

FINANCIAL STATEMENTS

STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS-CASH BASIS STATEMENTS OF REVENUE AND EXPENSES - CASH BASIS.
.1
.3
.4
NOTES TO FINANCIAL STATEMENTS .5
115
JCrowe Crowe LLP
Independent Member Ctowe Global

INDEPENDENT AUDITOR'S REPORT
Board of Directors
Travel Costa Mesa
Opinion
We have audited the financial statements of Travel Costa Mesa (the "Organization"), a California nonprofit corporation, which comprise the statements of assets, liabilities and net assets - cash basis as of June 30, 2025 and 2024, and the related statements of revenue and expenses - cash basis for the years then ended and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the assets and liabilities arising from cash transactions of the Organization as of June 30, 2025 and 2024, and its revenue collected and expenses paid during the years then ended in accordance with the cash basis accounting principles described in Note 1.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Organization and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basfs of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with the cash basis of accounting described in Note 1, and for determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances.

Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
(Continued)
L
116
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Organization's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
( LIP
Crowe LLP
Los Angeles, California
December 4 9, 2025

2. 117

TRAVEL COSTA MESA

STATEMENTS OF ASSETS, LIABILITIES AND NET ASSETS-CASH BASIS Years Ended June 30, 2025 and 2024
ASSETS
Cash

LIABILITIES
Current liabilities
Commitments and contingencies

NET ASSETS
Net assets without donor restrictions
Total liabilities and net assets
June 30,
2025 2024
$ 2,647.036 $ 3.131.781
2,647,036 3,131 ,781
2 47 $ 3,131.781

3. 118

TRAVEL COSTA MESA

STATEMENTS OF REVENUE AND EXPENSES-CASH BASIS
Years Ended June 30, 2025 and 2024

CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS
Rewnues and other income
Business improwment area assessment, net of
handling fees
Interest income
Net rewnues and other income
Expenses:

Hotel marketing fiinds (taken out of bank reserws) Marketing
City sponsorship funds (taken out of bank reserws)
Sales department
Group incentiw program
Salaries and benefits
Personnel incentiw payout (taken out of bank reserws) Other (taken out of bank reserhs)
General and administratiw
Total expenses
Decrease in net assets without donor restrictions
Net assets without donor restrictions, beginning of year Net assets without donor restrictions, end of year
For The Years Ended June 30
2025 2024
$ 3,304,903
36,992
3,341 ,895
475, 172
1 ,908,531
164,000
185,544
16,473
797,580
30,181
32,450
216,710
3,826,640
(484,745)
3,131,781
2,647,036
$ 3,286,105
5,230
3,291 ,335
463,049
1585,828
164,000
150,827
74,000
708,742
3,864
187,991
3,338,301
(46,966)
3,178,747
3,131,781

4. 119

TRAVEL COSTA MESA

NOTES TO FINANCIAL STATEMENTS
June 30, 2025 and 2024
NOTE 1- NATURE OF ACTMTIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities
Travel Costa Mesa (the "Organization") is a California non-profit corporation formed in 1995 to market the City of Costa Mesa (the "City") as a leisure travel and group business destination.

The vision of the Organization is to be a destination-marketing leader by supporting and selling the City's distinct visitor brand experiences and advocating community tourism benefits. The Organization's mission is to enhance and promote the City's brand experience, thus increasing visitor spending for industry and community economic viability, sustainability and quality of life.

The Organization is funded by the eleven member hotels that comprise the Business Improvement Area ("BIA") established by the City. The member hotels are Costa Mesa Marriott, Hilton Costa Mesa, Hampton by Hilton Costa Mesa Newport Beach, Residence Inn by Marriott, Avenue of the Arts, A Tribute Portfolio Hotel, Ayres Hotel, The Westin South Coast Plaza, Ramada Inn and Suites Costa Mesa, Best Western Plus Newport Mesa Inn, Crowne Plaza, and QC Hotel Costa Mesa.

California state law provides that BIA assessments are to be used for the purposes specified in the authorizing resolution that established the assessment. The City's resolution that established the BIA stated that its purpose is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel business within the City.

Basis of Presentation
The accompanying financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Consequently, revenues are recognized when received rather than when earned, and expenses are recognized when disbursed rather than when the obligation is incurred.

Net assets and revenues, expenses, gains,
of donor-imposed restrictions. Accordingly,
follows:
and losses are classified based on the existence or absence net assets and changes therein are classified and reported as Without donorrestrictions - Net assets that are not subject to donor-imposed stipulations. These assets are available to support the Organization's general activities and operations at the discretion of the Board of Directors.

Xhth donorrestrictions - Net assets that are subject to donor-imposed restrictions. Some donor-imposed restrictions are temporary in nature, such as those that will be met by the passage of time or other events specified by the donor. Other donor-imposed restrictions are perpetual in nature, where the donor stipulates that such resources be maintained in perpetuity. Generally, the donors of these assets permit the Organization to use all or part of the income earned on related investments for general or specific purposes.

As of and for the years ended June 30, 2025 and 2024, the Organization had no net ASSETS with donor restrictions.
(Continued)

5. 120

TRAVEL COSTA MESA

NOTES TO FINANCIAL STATEMENTS
June 30, 2025 and 2024
NOTE 1 - NATURE OF ACTMTIES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenues are reported as increases in net assets without donor restrictions unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in net assets without donor restrictions. Gains and losses on investments and other assets are reported as increases or decreases in net assets without donor restrictions unless their use is restricted by explicit donor stipulations or by law.

Tax Status
The Organization qualifies as a tax-exempt organization for Federal income taxes under Section 501 (c%6) of the United States Internal Revenue Code and for California state income taxes under Section 2370al(d) of the California Revenue and Taxation Code; therefore, the Organization has no provision for federal or state income taxes. During the years ended June 30, 2025 and 2024, the Organization had no unrelated business income.

The Organization annually evaluates tax positions as part of the preparation of its exempt tax return. This process includes an analysis of whether tax positions the Organization takes with regard to a particular item of income or deduction would meet the definition of an uncertain tax position under current accounting guidance. The Organization believes its tax positions are appropriate based on current facts and circumstances. The Organization's policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. At June 30, 2025 and 2024, the Organization did not have any unrecognized tax benefits. The Organization is no longer subject to u.s.

Federal and state income tax examinations by tax authorities for tax years before 2021.

Use of Estimates
The preparation of financial statements in conformity with the cash basis of accounting requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Significant estimates made by the Organization's management include, but are not limited to, the allocation of expenses to program expenses. Actual results could differ from those estimates.

Revenues and Other Income
The City levies a special assessment on the eleven-member hotels in the BIA based on the sale of overnight guest room stays. For the fiscal years ended June 30, 2025 and 2024, the levy was three percent (3%).

The levy is transmitted by the hotels to the City; the City then aggregates the levies and sends a monthly remittance to the Organization, net of a one percent (1%) handling fee.

Allocated Expenses
The costs of providing program activities and supporting services have been summarized on a functiona) basis in Note 7. The Organization incurs expenses that directly relate to, and can be assigned to, a specific program or supporting activity. The Organization also conducts a number of activities which benefit both its program objectives as well as supporting services. These costs, which are not specifically attributable to a specific program or supporting activity, are allocated by management on a consistent basis among program and supporting services benefited, based on either financial or nonfinancial data, such as headcount, occupancy or estimates of time and effort incurred by personnel. (Continued)

6. 121

TRAVEL COSTA MESA

NOTES TO FINANCIAL STATEMENTS
June 30, 2025 and 2024
NOTE 2 - LIQUIDITY AND AV AILABILITY
At June 30, 2025 and 2024, the Organization has $2,647,036 and $3,131,781, respectively, of financial assets available within one year of the date of the statement of assets, liabilities and net assets - cash basis to meet cash needs for general expenditures, all of which consist of cash. None of the financial assets are subject to donor or other contractual restrictions that make them unavailable for general expenditures within one year of the statement of assets, liabilities and net assets - cash basis. The Organization has a goal to maintain financial assets, which consist of cash on hand to meet six months of normal operating expenses per the Organization's reserves. The Organization has a policy to structure its financial assets to be available as its general expenditures, liabilities, and other obligations come due.

Funding for the Organization is dependent on the hotel room nights booked in the City each year and the subsequent portion of the levy that is allocated through the City to the Organization. Annual revenue fluctuates depending on annual visitors to the City. As a result, the Organization closely monitors the monthly projected and received revenue to determine if any change needs to be made to budgeted expenditures.

NOTE 3 - CASH
Cash consists of demand deposits at the following institutions as of June 30:

Citizens Business Bank
Pacific Premier Bank
Cash equivalents (Treasury Bills)
2025
121,026
2,526,011
2024
$ 549,314
2,582,467
$ 2,647,036 $ 3,131,781
The Organization maintains cash deposits at institutions which are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. At various times during 2025 and 2024, the Organization maintained balances in excess of FDIC limits. The Organization periodically reviews the quality of the financial institutions it has deposits with to minimize risk of loss.

Cash equivalents consist of Treasury Bills with original maturities of three months or less.

NOTE 4 - HOTEL MARKETING FUNDS EXPENSE
During portions of each of the fiscal years ended June 30, 2025 and 2024, the Organization allocated $200 per room to each BIA member hotel for hotel-specific marketing purposes. The allocation subsidizes hotel- specific advertising and marketing efforts that may also include the Organization's logo. Vendor invoices are paid by the Organization and, in some cases, paid by the hotel and reimbursed by the Organization.

Samples of advertising and marketing material are submitted for reimbursement. For advertising or marketing material where the Organization's logo cannot be used, the Organization requests that the hotel partners use the following verbiage,"Hotel partner name is a proud partner of Travel Costa Mesa." Hotel marketing funds expense totaled $475,172 and $463,049 for fiscal years ended June 30, 2025 and 2024, respectively. If the hotels do not use all their allocated funds, the funds revert to the Organization. (Continued)

7. 122

TRAVEL COSTA MESA

NOTES TO FINANCIAL STATEMENTS
June 30, 2025 and 2024
NOTE 5 - GROUP INCENTIVE PROGRAM
The Organization has a group incentive program which is used for certain qualifying groups and was created to assist the Organization's partners and the City with group business. The group incentive program funds totaled $16,473 and $74,000 during the years ended June 30, 2025 and 2024, respectively.

NOTE 6 - MARKETING EXPENSE
The Organization incurs marketing expenses related to its mission of promoting the City as a tourist destination. For the fiscal years ended June 30, 2025 and 2024, marketing expenses totaled $1,908,531 and $1,585,828, respectively.

Marketing expenses include online marketing, video and photography production, electronic collateral, print advertising, various promotions, and tradeshow costs.

NOTE 7 - ST ATEMENT OF FUNCTIONAL EXPENSES
The statement of functional expenses for the year ended June 30, 2025 is as follows:

8. 123

TRAVEL COSTA MESA

NOTES TO FINANCIAL STATEMENTS
June 30, 2025 and 2024
NOTE 7 - STATEMENT OF FUNCTIONAL EXPENSES (Continued) The statement of functional expenses for the year ended June 30, 2024 is as follows:

Salaries and benefits $
Marketing (Eblasts and Web Hosting)
Hotel marketing funds
Online marketing
City sponsorship
Sales department
Group incentiw program
Office and copier leases
Trawl, meetings, conferences and mileage
Accounting and fees
Insurance
Dues and subscriptions
Office supplies
Telephone and internet
Banking charges
Filing fee and state assessment
Postage
Parking
Recruiting sermces
Professional services
Total functional expenses $
Program
Activities
570 525 $
6 883
463 049
1,578,945
164,000
150,827
74,000
38,696
61,246
3,108,171 $
General and
Administrative Total
138,217 $
9,374
12,363
22,310
14,254
7,304
20 ,921
255
63 550
21 2
443
3,864
230,130 $
708,742
6,883
463, 049
1 ,578,945
164,000
150,827
74,000
48, 070
61 ,246
12,363
22,310
14,254
7,304
20, 921
255
63 550
212
443
3,864
3,338,301
NOTE 8 - COMMITMENTS AND CONTINGENCIES
Indemnities
The Organization has made certain indemnities, under which it may be required to make payments to an indemnified party, in relation to certain actions or transactions. The Organization indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of California. In connection with its facility lease, the Organization has indemnified its lessor for certain claims arising from the use of the facilities. The duration of the indemnities varies and is generally tied to the life of the agreement. These indemnities do not provide for any limitation of the maximum potential future payments the Organization could be obligated to make. Historically, the Organization has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying statements of assets, liabilities and net assets - cash basis. (Continued)

9. 124

TRAVEL COSTA MESA

NOTES TO FINANCIAL STATEMENTS
June 30, 2025 and 2024
NOTE 8 - COMMITMENTS AND CONTINGENCIES (Continued) Operatinq Leases
The Organization has a lease for office space through December 2030. The Organization also has a lease for a color copier through September 2028. Total rent expense for the fiscal years ended June 30, 2025 and 2024 totaled $51,468 and $48,070, respectively.

Future minimum lease obligations as of June 30, 2025 consist of the following:

Litigation
Years Ending
June 30,
2026
2027
2028
:o;g
2030
59,256
70,012
70,012
68,509
34 104
In the ordinary course of business, the Organization may face various claims brought by third parties and they may, from time to time, make claims or take legal actions to assert their rights. Any of these claims could subject the Organization to costly litigation and, while the Organization generally believes that it has adequate insurance to cover many different types of potential liabilities, its insurance carriers may deny coverage or its policy limits may be inadequate to fully satisfy any damage awards or settlements. If this were to happen, the payment of any such awards could have a material adverse effect on the Organization's operations and financial position. Additionally, any such claims, whether or not successful, could damage the Organization's reputation and business.

NOTE 9 - EMPLOYEE BENEFIT PLAN
The Organization sponsors a defined contribution salary deferral plan (the "Plan") covering all employees.

Beginning in April 2012, the Board of Directors agreed to Safe Harbor contributions of 3% of the eligible employee's salary. During each of the fiscal years ended June 30, 2025 and 2024, Safe Harbor contributions totaled approximately $16,000, which are recorded in salaries and benefits in the accompanying statements of revenue and expenses - cash basis.

NOTE lO - RISKS AND UNCERT AINTIES
Due to the nature of the Organization's business, the Organization's revenue is entirely dependent on the City and the member hotels. The City established the BIA and collects the BIA levy from the eleven hotels in Costa Mesa and the member hotels are voluntary participants (see Note 1 ). A cancellation of the BIA or withdrawal of the member hotels would adversely and severely impact the Organization's financial position. (Continued)

10. 125

TRAVEL COSTA MESA

NOTES TO FINANCIAL STATEMENTS
June 30, 2025 and 2024
NOTE 11- SUBSEQUENT EVENTS
Management has evaluated and determined that no other events have occurred through December 19, 2025, the date that the financial statements were available to be issued, which would require inclusion or disclosure in its financial statements, except as disclosed herein.

11. 126
Resolution No. 2026-xx Page 1 of 7
RESOLUTION NO. 2026-xx
A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2026- 27 FOR A BUSINESS IMPROVEMENT AREA COVERING CERTAIN COSTA MESA HOTELS

AND MOTELS AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING ON THE

PROPOSED ANNUAL ASSESSMENT
T

HE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS FOLLOWS:

W
HEREAS, in adopting the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code sections 36500, et seq .), the California Legislature authorized cities to levy assessments on businesses in order to promote economic revitalization and tourism, to create jobs, attract new businesses, and prevent erosion of business districts; and W
HEREAS, on July 5, 1995, by Ordinance No. 95-9, the City Council adopted a business improvement area, commonly known as the Costa Mesa Tourism & Promotion Business Improvement Area (“BIA”), the purpose of which is to promote tourism to the City and to fund programs and activities that benefit the hotel and motel businesses within the City of Costa Mesa; and W
HEREAS, the eleven (11) hotels and motels listed in Exhibit A, attached hereto and incorporated herein by this reference, are currently subject to the assessment; and W
HEREAS, the City Council appointed the general managers of the 11 hotels and motels subject to the assessment t o serve as the advisory board as required by California Streets and Highways Code section 36530; and
W
HEREAS, said advisory board is known as Travel Costa Mesa (“TCM”); and W
HEREAS, the City Council has voted to continue the special assessment for the BIA each year since its inception, and it has been levied upon the 11 hotel and motel businesses listed in Exhibit A; and
W
HEREAS, in January 2000, the City Council approved an increase in the assessment, raising the assessment from one percent (1%) to two percent (2%) based on the sale of overnight room stays; and
W
HEREAS, in November 2010, the City Council approved an increase in the assessment, raising the assessment from two percent (2%) to three percent (3%) based on the sale of overnight room stays; and
W
HEREAS, the City desires to levy and collect a three percent (3%) assessment within the BIA for Fiscal Year 2026-2027; and
W
HEREAS, this Resolution of Intention will commence proceedings under the Parking and Business Improvement Area Law of 1989 to levy the annual assessment of the Costa Mesa Tourism & Promotion Business Improvement Area for the 2026-27 Fiscal Year; and Attachment 3
127
Resolution No. 2026-xx Page 2 of 7

WHEREAS, the Agenda Report and its attachments for the May 5 , 20 26 City Council meeting filed with the City Clerk set forth a detailed description of the activities to be provided in the 2026-27 Fiscal Year, the boundaries of the Business Improvement Area, the benefit zone of the area, and the proposed assessments to be levied upon the businesses within the area for the coming fiscal year.

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

Section 1. Intention; Assessment. The City Council hereby declares its intention to levy and collect assessments in the Costa Mesa Tourism & Promotion Business Improvement Area for Fiscal Year 2026-27 pursuant to California Streets & Highways Code §§ 36500 et seq. The boundaries of the Costa Mesa Tourism & Promotion Business Improvement Area are the 11 motels and hotels listed in Exhibit A. The proposed amount of the annual assessment is three percent (3%) based on the sale of overnight room stays. New hotel and motel businesses commenced after the effective date of the resolution levying the assessment will be exempt from the levy of assessment, pursuant to California Streets & Highways Code § 36531.

Section 2. Annual Report. An annual report on the Costa Mesa Tourism & Promotion Business Improvement Area has been prepared by TCM, acting as the advisory board, as required by California Streets & Highways Code §§ 36533 and 36534. Said report is on file in the City Clerk’s Office.

Section 3. Types of Activities to Be Funded. The type or types of activities to be funded by and through the annual levy of assessments on businesses within the Costa Mesa Tourism & Promotion Council Business Improvement Area are specified in the referenced annual report and Exhibit B, attached hereto and incorporated herein.

Section 4. Reporting and Remitting to the City of Costa Mesa Finance Department. Each hotel/motel owner shall separate the Business Improvement Assessment from the Transient Occupancy Tax on guest billing statements. The specific term “Business Improvement Assessment” shall be included on the billing to identify the assessment amount. The hotel/motel owner shall collect and subsequently remit the assessment to the Costa Mesa Finance Department at the same time and manner as the Transient Occupancy Tax. A ten percent (10%) penalty and half percent (0.5%) interest will be assessed on late remittances.

Section 5. Method and Basis of Levy. To allow each business owner to estimate the amount of the assessment to be levied against his or her business, the method and basis of levying the assessment are set forth in the annual report relative to the Business Improvement Area, Ordinance No. 95-9, and Exhibit B.

Section 6. Time and Place of Public Hearing. The time and place of the public hearing on the levy of an annual assessment for Fiscal Year 2026- 27 shall be 7:00 p.m. on June 2 , 2026. At the public hearing set forth above, the testimony of all interested persons for or against the annual levy of the assessment for the Business Improvement Area, the extent of the area, and/or the furnishing of specific types of improvements or activities will be heard by the City Council.

Section 7. Protests. Consistent with California Streets & Highways Code §§ 36524 and 36526, the following rules shall apply to all protests:

128
Resolution No. 2026-xx Page 3 of 7

(a) A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made.

(b) Every written protest shall be filed with the City Clerk’s Office, Costa Mesa City Hall, 77 Fair Drive, Room 101, Costa Mesa, California 92626, at or before the time fixed for the public hearing as set forth above.

(c) The City Council may waive any irregularity in the form or content of any written protest, and, at the public hearing, may correct minor defects in the proceedings.

(d) A written protest may be withdrawn in writing at any time before the conclusion of the public hearing.

(e) Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest.

(f) If written protests are received from the owners of businesses in the proposed Business Improvement Area which will pay fifty percent (50%) or more of the assessments to be levied and protests are not withdrawn so as to reduce the protests to less than the fifty percent (50%), no further proceedings on the proposal to continue to levy the Business Improvement Area assessment, as specified by this Resolution, shall be taken by the City Council for a period of one year from the date of the finding of a majority protest.

(g) If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the Business Improvement Area, those types of improvements or activities shall be eliminated.

Section 8. Publication. The City Clerk shall cause this Resolution of Intention to be published once in a newspaper of general circulation in the City at least seven (7) days before the June 2 , 2026 public hearing.

129
Resolution No. 2026-xx Page 4 of 7

PASSED AND ADOPTED this _____ day of May, 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 is the original of Resolution No. 2026-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the _____ day of May, 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 May, 2026.

Brenda Green, City Clerk
130
Resolution No. 2026-xx Page 5 of 7

EXHIBIT A

The Business Improvement Area (“BIA”) benefit zone encompasses the entire City of Costa Mesa boundaries. It is anticipated that the entire City, including businesses and residents, will benefit from increased revenues generated by the activities financed by the BIA assessment.

The following businesses will be included in the BIA that is established pursuant to California Streets and Highways Code sections 36500, et seq., the businesses commonly known as:

Avenue of the Arts, A Tribute Portfolio Hotel
Property Address: 3350 Avenue of the Arts
Costa Mesa, CA 92626

Business Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92626

Property Owner: Rosanna Inc.
3350 Avenue of the Arts
Costa Mesa, CA 92626

Ayres Hotel Costa Mesa
Property Address: 325 Bristol Street
Costa Mesa, CA 92626

Business Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626

Property Owner: Newport Country Inn & Suites, Inc.
355 Bristol Street, Suite A
Costa Mesa, CA 92626

Best Western Plus Newport Mesa Inn
Property Address: 2642 Newport Boulevard,
Costa Mesa, CA 92627

Business Owner: James Hsuen & Shang-Pu Lee
2642 Newport Boulevard
Costa Mesa, CA 92627

Property Owner: James Hsuen & Shang-Pu Lee
2642 Newport Boulevard
Costa Mesa, CA 92627

131
Resolution No. 2026-xx Page 6 of 7

Crowne Plaza
Property Address: 3131 Bristol Street
Costa Mesa, CA 92626

Business Owner: Bright Bristol Street, LLC
3131 Bristol Street
Costa Mesa, CA 92626

Property Owner: Bright Bristol Street LLC
3131 Bristol Street
Costa Mesa, CA 92626

Hilton
Property Address: 3050 Bristol Street
Costa Mesa, CA 92626

Business Owner: Remington Lodging & Hospitality LP
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254

Property Owner: Ashford TRS CM LLC
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254

Hampton by Hilton Costa Mesa Newport Beach
Property Address: 2070 Newport Boulevard
Costa Mesa, CA 92627

Business Owner: Narendra B. Patel
2070 Newport Boulevard
Costa Mesa, CA 92627

Property Owner: Narendra B. Patel
2070 Newport Boulevard
Costa Mesa, CA 92627

Marriott
Property Address: 500 Anton Boulevard
Costa Mesa, CA 92626

Business Owner: Starwood Capital Group
591 West Putnam Avenue
Greenwich, CT 06830

Property Owner: HEI Hotels & Resorts
101 Merritt 7 Corporate Park, 1
st Floor
Norwalk, CT 06851

132
Resolution No. 2026-xx Page 7 of 7

OC Hotel Costa Mesa
Property Address: 2430 Newport Boulevard
Costa Mesa, CA 92627

Business Owner: SAI KSP Inc.
11556 Manchester Way
Porter Ranch, CA 91326

Property Owner: Sanjay Panchal
11556 Manchester Way
Porter Ranch, CA 91326

Ramada Inn & Suites
Property Address: 1680 Superior Avenue
Costa Mesa, CA 92627

Business Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Avenue
Costa Mesa, CA 92627

Property Owner: B.D. Inns Inc./Ramada Ltd.
1680 Superior Avenue
Costa Mesa, CA 92627

Residence Inn by Marriott
Property Address: 881 Baker Street
Costa Mesa, CA 92626

Business Owner: Marriott International
10400 Fernwood Road.

Bethesda, MD 20817

Property Owner: Legay Strata
11301 West Olympic Boulevard, #121-467
West Los Angeles, CA 90064

The Westin South Coast Plaza
Property Address: 686 Anton Boulevard
Costa Mesa, CA 92626

Business Owner: Host Hotels & Resorts
6903 Rockledge Drive, Suite 1500
Bethesda, MD 20817

Property Owner: Secon Properties
3315 Fairview Road
Costa Mesa, CA 92626
133
Resolution No. 2026-xx Page 8 of 7

EXHIBIT B

The BIA assessment will be used to fund Travel Costa Mesa (“TCM”). TCM will fund activities to promote tourism in Costa Mesa and will sponsor related tourist events that benefit the hotel and motel businesses within the City.

Revenue

A three percent (3%) levy will be assessed against each of the 11 hotels listed in Exhibit A, based on the net revenue from the sale of overnight room stays.

Business owners shall pay the assessment to the Costa Mesa City Finance Department on a monthly basis. A penalty and interest shall be assessed on late payments.

Note: New hotel and motel businesses commenced after the effective date of this resolution will be exempt from the levy of assessment.
134

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-243 Meeting Date: 5/5/2026
TITLE:

APPROVAL OF THE AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE

ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT BETWEEN

THE COUNTY OF ORANGE, ORANGE COUNTY FLOOD CONTROL DISTRICT, AND

PARTICIPATING ORANGE COUNTY CITIES
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 the Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement (“Agreement”)between the County of Orange, Orange County Flood Control District, and participating Orange County cities.

2. Authorize the City Manager to execute the agreement and any related documents necessary to implement the terms of the agreement.

BACKGROUND:

The City of Costa Mesa (City) is a permittee under the Municipal Separate Storm Sewer System (MS4) permits program, as issued by the Santa Ana Regional Water Quality Control Board, along with the County of Orange, the Orange County Flood Control District (District), and other cities in North Orange County. The cities in South Orange County are included in a separate permit, issued by the San Diego Regional Water Quality Control Board. Collectively, the administration of these permits is handled through a cooperative agreement between the County of Orange and all the cities in Orange County, formalized through an implementation agreement, which establishes a cooperative framework for implementing the Orange County Stormwater Program to meet MS4 permit requirements and improve surface water quality throughout the County.

The original NPDES Stormwater Permit Implementation Agreement was executed in 1990 and subsequently amended in 1993 and again in 2002, between the County of Orange and each of the cities, whereby the County served as the administrator of the regional Orange County Stormwater Program. The agreement has allowed for collaboration, consistency, and cost sharing of regional compliance strategies, municipal staff training, watershed monitoring and reporting efforts, and other MS4 program elements required of each of the permittees.

While the current agreement has achieved many significant water quality improvements to local

Page 1 of 3 ends

135
File #: 26-243 Meeting Date: 5/5/2026
While the current agreement has achieved many significant water quality improvements to local beaches and inland waters, state regulatory requirements issued through the MS4 permits have changed significantly since the agreement was last updated. Watershed-specific water quality priorities have become increasingly complex requiring targeted solutions including structural treatment projects to meet ongoing and forthcoming compliance requirements.

ANALYSIS:

The proposed agreement (Attachment 1) restates and updates the original agreement to reflect current regulatory requirements, administrative practices, and programmatic needs. It continues the collaborative approach among the permittees to implement regional stormwater management strategies, but it also provides added flexibility in designing and developing watershed-specific strategies, programs, and projects using corresponding shared cost sub-budget scales. As part of the shared cost budget approval process, the amended and restated agreement also formalizes the consultation process with the Orange County City Managers Association (OCCMA) each year, which updates and improves the existing annual budget collaboration process already implemented with OCCMA.

The shared cost budget that is developed annually for this agreement maintains the existing cost sharing formula approach based on land area and population for the unincorporated County and thirty-four (34) Orange County cities, with the District contributing 10% of the overall cost. For sub- budgets allowed under this agreement that do not apply to all the permittees, this same cost sharing formula approach would be applied for the participating permittees. Examples of the types of geographic areas to which a sub-budget could apply include across an MS4 permit area, watershed level, or sub-watershed scales.

Key provisions of the amended and restated agreement include:
· Continued designation of the County as the administrator of the regional Orange County Stormwater Program.
· Clarification of responsibilities for each permittee, including compliance reporting, monitoring, and implementation of Best Management Practices (BMPs). · Engagement with the OCCMA for strategic input on compliance and funding. · Provision of an updated collaborative review process for annual operating budgets, including allowing for new sub-budgets to be established with smaller groups of permittees to support development of targeted water quality projects and programs. · Continuation of the existing cost sharing formula between the permittees based on land area and population, with the Orange County Flood Control District contributing 10% and the County and cities sharing the remaining 90% for the annual operating budget countywide. For new sub-budgets, the same approach will be used to share costs amongst those participating agencies.

Page 2 of 3 ends

136
File #: 26-243 Meeting Date: 5/5/2026
ALTERNATIVES:

The City Council may reject approval of the agreement and request staff to negotiate any terms of the agreement with the County of Orange. Staff does not recommend this alternative since this will result in the City administering the MS4 permit entirely using its own staff and resources, which is both cost prohibitive and infeasible.

FISCAL REVIEW:

The City’sfinancial contribution will be calculated annually based on its proportional share of land area and population, as outlined in the agreement. During Fiscal Year 2025-26, the City of Costa Mesa’s proportional share of the proposed $9.6 million countywide budget was $223,165, which included reimbursement for Countywide costs as well as costs for programs specific to the Santa Ana Regional Water Quality Control Board. This amount is incorporated as part of the annual budget in the General Fund (Fund 101).

LEGAL REVIEW:

The City Attorney’sOffice has reviewed this report and the proposed implementation agreement and approves both as to form.

CITY COUNCIL GOALS AND PRIORITIES:

The proposed NPDES Stormwater Permit Implementation Agreement works toward achieving the following City Council goals:
· Maintain and Enhance the City’s Facilities, Equipment and Technology · Strengthen the Public’s Safety and Improve the Quality of Life · Advance Environmental Sustainability and Climate Resiliency CONCLUSION:

Staff recommends the City Council:

1. Approve the Amended and Restated National Pollutant Discharge Elimination System (NPDES) Stormwater Permit Implementation Agreement (“Agreement”).

2. Authorize the City Manager to execute the agreement and any related documents necessary to implement the terms of the agreement.

Page 3 of 3 ends

137

1 AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM

STORMWATER PERMIT IMPLEMENTATION AGREEMENT

This AMENDED AND RESTATED NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM STORMWATER PERMIT IMPLEMENTATION AGREEMENT (“AGREEMENT”), for purposes of identification numbered [D02-048], and which may be alternatively referred to as the “OC Stormwater Program Implementation Agreement,” is entered into this ____ day of _________, 2026, by the County of Orange, (herein called the COUNTY), the Orange County Flood Control District (herein called DISTRICT) and the cities of Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, La Habra, La Palma, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda (herein called CITIES).

The COUNTY, DISTRICT, and CITIES may be referred to collectively as PERMITTEES or individually as PERMITTEE, COUNTY, DISTRICT, or CITY, respectively, in this AGREEMENT.

RECITALS
WHEREAS, the United States Congress in 1987, through the Water Quality Act, amended Section 402 of the Clean Water Act (33 U.S.C.A. 1342(p)) to require the United States Environmental Protection Agency (“EPA”) to promulgate regulations for permitting stormwater discharges; and
WHEREAS, EPA regulations require National Pollutant Discharge Elimination System (“NPDES”) permits for discharges from a municipal separate storm sewer system (“MS4”)(herein after called MS4 permits), and further require MS4 permits to include requirements to control pollutants from stormwater discharges; and WHEREAS, in 1927, the Orange County Flood Control Act created the DISTRICT ATTACHMENT 1
138

2 to provide for the control of flood and stormwater and protect from damage from those flood or stormwater, the harbors, waterways, public highways, and property within the DISTRICT’s jurisdiction; and
WHEREAS, the powers granted to the DISTRICT include the authority to regulate discharges that threaten to impact its system and carry on technical and other investigations, examinations, or tests of all kinds, making measurements, collecting data, and making analyses, studies, and inspections pertaining to water supply, control of floods, use of water, water quality, nuisance, pollution, waste, and contamination of water, both within and without the DISTRICT; and
WHEREAS, the California State Water Resources Control Board (“SWRCB”), as designee of the EPA, has delegated authority to the California Regional Water Quality Control Boards-Santa Ana Region (“RWQCB-SAR”) and San Diego Region (“RWQCB-SDR”)(collectively, the RWQCBs) for administration of MS4 permits within the boundaries of their regions; and
WHEREAS, the COUNTY, DISTRICT, and CITIES are PERMITTEES under MS4 permits issued by the RWQCBs; and
WHEREAS, the RWQCBs have designated the COUNTY as the Principal PERMITTEE or Principal Watershed Co-permittee, as defined in the MS4 permits; and WHEREAS, the COUNTY, the DISTRICT and the CITIES previously entered into that certain agreement entitled National Pollutant Discharge Elimination System Stormwater Permit Implementation Agreement D90-094, on December 18, 1990, which was subsequently amended on October 26, 1993 by Amendment No. 1 and then on June 25, 2002 (the December 18, 1990 Agreement as Amended by Amendment No. 1 and the June 25, 2002 amendment will be referred to collectively hereinafter as the ORIGINAL AGREEMENT), to cooperatively develop, and did thereunder develop, an integrated stormwater runoff management program with the objective of fulfilling MS4 permit requirements and improving water quality in Orange County (program ATTACHMENT 1
139

3 referred to herein as the “OC Stormwater Program”); and WHEREAS, Section X of the ORIGINAL AGREEMENT provides that the ORIGINAL AGREEMENT may be amended by consent of a majority of the PERMITTEES which represent a majority of the percentage contributions as described in Section IV of the ORIGINAL AGREEMENT; and
WHEREAS, continued cooperation between the CITIES, the COUNTY, and the DISTRICT to jointly implement the OC Stormwater Program to fulfill prior, new, and potential future MS4 permit requirements, to the extent feasible, is in the best interests of the CITIES, the COUNTY, and the DISTRICT; and WHEREAS, the PERMITTEES now desire to restate and amend the ORIGINAL AGREEMENT, as reflected and set forth in this AGREEMENT.

NOW, THEREFORE, the PERMITTEES do mutually agree as follows:

I. FILING STATUS

The COUNTY, the DISTRICT, and each CITY have filed applications for MS4 permits as PERMITTEES. The COUNTY, the DISTRICT and each CITY is a PERMITTEE under each MS4 permit to which they are subject.

II. INCORPORATION OF FEDERAL GUIDELINES

All applicable federal and state water quality regulations and guidelines under the Federal Clean Water Act, as presently written or as changed during the term of this AGREEMENT, are hereby incorporated by reference and made a part of this AGREEMENT and take precedence over any inconsistent terms of this AGREEMENT.

III. DELEGATION OF RESPONSIBILITIES

The responsibilities of each of the parties shall be as follows:

A. The COUNTY shall be the administrator of the OC Stormwater Program and, on a cost-shared basis, perform the following functions:

1. Annual operating budgets.

a. Prepare the annual operating budget (“annual operating budget”), which shall include a work plan and associated financial plan and ATTACHMENT 1
140

4 budget. The annual operating budget is intended to provide for all programmatic functions and associated costs of the OC Stormwater Program, as outlined in this AGREEMENT and as generally described in Section V.A. Annual operating budgets and work plans may be based on RWQCB region (i.e., Santa Ana Region versus San Diego Region). The budget year shall coincide with the COUNTY's fiscal year, July 1 – June 30.

b. Consult with the Stormwater Program Representatives (as defined in Section III.C.8) when preparing annual operating budgets and major program elements therein.
c. A draft of the annual operating budget may be prepared for the PERMITTIES for review by February 15 each year. Annual operating budgets shall be submitted to the PERMITTEES for consideration and approval by May 15 of each year. Individual CITY approval shall be obtained from each CITY’s city manager or designee thereof by July 30 of each year. CITY manager designations for annual operating budget approval shall be provided in writing to the County and shall remain in effect until revoked in writing by the CITY’s city manager. An annual operating budget shall be deemed approved and adopted for the OC Stormwater Program by affirmative responses from PERMITTEES which represent a majority (50% or greater) of both the area and population percentage contribution as calculated in accordance with Section V.A (method for calculating approval percentage referred to as “Majority Approval”). The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V.A.

d. An approved and adopted annual operating budget shall not be ATTACHMENT 1
141

5 exceeded without prior Majority Approval of the PERMITTEES.

2. Project or watershed-specific sub-budgets.
a. In coordination with the PERMITTEES, prepare project-specific and/or watershed-specific budgets and associated work plans (collectively, “sub-budget(s)”) for the design of water quality projects and/or responding to RWQCB enforcement orders and/or other orders (e.g., California Water Code 13267 or 13383 orders).

b. Sub-budgets shall be prepared and proposed on an as-needed basis, at the discretion of the COUNTY, or as requested by interested PERMITTEES, subject to concurrence of the COUNTY.
c. Each PERMITTEE willing to participate in a sub-budget will confirm participation to the COUNTY in writing. A PERMITTEE who confirms participation in a sub-budget shall be referred to herein as “PARTICIPATING PERMITTEE(s).” Sub-budgets will be subject to unanimous approval by all PARTICIPATING PERMITTEES, except that where a Participating Permittee fails to vote to approve a proposed sub-budget, such failure shall be deemed a withdrawal from the sub-budget and the withdrawing PERMITTEE shall no longer be considered a PARTICIPATING PERMITTEE and shall have no obligation to pay for or participate in the sub-budget.

d. Project elements that go beyond design (e.g., construction, operation, and maintenance) shall not be provided for in sub- budgets and, instead, are subject to separate agreement between the Participating Permittees.

3. Represent the OC Stormwater Program in reviews of documents, comments, and discussions with EPA, SWRCB, and RWQCBs and/or other resource agencies regarding MS4 permit requirements and related policies, programs, and regulations. The COUNTY shall timely notify the ATTACHMENT 1
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6 PERMITTEES of any decision reached during these discussions that, in the determination of the County, substantially impacts the OC Stormwater Program.

4. Implement approved annual operating budgets and sub-budgets.

5. Working in collaboration with PERMITTEES, prepare and submit regional compliance reports as the Principal PERMITTEE, as required under the MS4 permits, and/or as designated in the approved workplans.

6. Implement the regional monitoring and reporting program elements from approved workplans for the MS4 permits, including, but not limited to, tasks to monitor and measure the effectiveness of Best Management Practices (“BMPs”). This may include monitoring and modeling.

7. Obtain, as may be required by the annual operating budget and/or sub- budgets approved pursuant to this AGREEMENT, professional services, including, but not limited to, scientific, engineering, environmental, economic, and/or legal consultants to provide technical assistance for the work associated with the OC Stormwater Program. This work may include, but is not limited to, the preparation of technical or economic studies, legal analysis, watershed management plans, stormwater runoff management plans, water quality improvement plans, modeling, reasonable assurance demonstrations/reasonable assurance analyses, monitoring plans, technical reports, municipal staff training activities, and the design of structural and non-structural BMPs and strategies to prevent and/or reduce pollutants in stormwater runoff. Contracts for professional services to be funded under this AGREEMENT shall be made in conformance with the COUNTY’s procurement policies, and, to the extent there is no conflict, the following:
a. The COUNTY shall make efforts to stagger the date of issuance of new contracts for professional services, so that PERMITTEES may ATTACHMENT 1
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7 better absorb increases in consultant fee rates.
b. For contracts for professional services that would require approval by the Orange County Board of Supervisors (as determined within the sole discretion of the COUNTY), one Stormwater Program
Representative for every two designees of the COUNTY shall be allowed to participate in any panel formed for the purpose of evaluating responses to Requests for Proposals or similar competitive solicitations submitted by potential consultants. Where any contract subject to this provision is to be extended beyond the initial term, the COUNTY shall request feedback from the Stormwater Program Representatives, regarding the consultant’s performance, prior to executing the extension. This process shall in no way impinge upon or limit the COUNTY’s discretion to enter into, amend, extend, renew, or cancel any contract for professional services for the OC Stormwater Program.
c. The COUNTY shall notify the PERMITTEES of any changes in the COUNTY’s procurement policies that significantly affect the thresholds for competitive procurement, scoring, or selection processes for contract services.

8. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities within the unincorporated areas of the County, at no cost to the CITIES.

9. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities on County-owned property used for COUNTY governmental purposes (i.e., property used for governmental functions) and located within a CITY, at no cost to the CITIES. For purposes of this section, the regional facility known as Dana Point Harbor shall be considered a County- owned property used for governmental purposes.

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8 a. To avoid confusion in the implementation of each party’s facility inspection programs, the COUNTY shall provide a list of those facilities, buildings and properties that it owns and are located within other jurisdictions (i.e. non-unincorporated properties) that the COUNTY has decided to monitor and regulate pursuant to this Section III.A.9. The County further agrees to notify the affected PERMITTEE of changes to the status of a facility.

B. The DISTRICT shall, on a cost-shared basis, except as set forth in subparagraph 2 below:

1. Perform or cause to be performed the water quality and hydrographic monitoring for compliance with MS4 permits and/or in accordance with RWQCB-approved monitoring plans and/or in the approved workplans.

2. Implement a facility inspection program, as required by the MS4 permits, for MS4 facilities located on District-owned and controlled property that is used for governmental purposes, at no cost to the CITIES.

3. Undertake or cause to be undertaken all activities required of the CITIES in Section III.C and applicable to the District.

C. The CITIES, at no cost to the Counties and the District, shall:

1. Implement a facility inspection program for its MS4 facilities, as required by the MS4 permit(s) and within the jurisdictional boundaries of that CITY.

2. Submit to the COUNTY storm drain system maps and/or data describing the type and location of its MS4 facilities with periodic revisions that reflect any modifications made as a result of land
development/redevelopment. If possible, information shall be submitted as geographical information system (“GIS”) data.

3. Support the COUNTY in the preparation of watershed characterizations and catchment prioritization efforts, including, but not limited to, by:

ATTACHMENT 1
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9 a. Identifying applicable zoning and land use designations. b. Identifying areas where sources of specific pollutants are known.

4. Upon COUNTY request, review, comment on, consider approval of, and, if approved, implement regional strategies to prevent and reduce pollutants in stormwater runoff.

5. Implement an illegal discharge detection and elimination program as required by the MS4 permit(s) to which the CITY is subject. Demonstrate adequate legal authority to control discharges to its MS4 facilities as may be required by the relevant MS4 permit(s) to which the CITY is subject.

6. Provide, as requested by the COUNTY, copies of the CITY’s jurisdictional reports, data, and any other information (in formats requested by the COUNTY, where such formats are reasonably available) to satisfy requirements in MS4 permits or other orders issued by a Regional Board or the State Board, to which the CITY is subject, provided the CITY has not otherwise challenged such order, and such challenge has not been resolved.

7. Participate in meetings convened by the COUNTY and respond to requests for information from the COUNTY, intended to obtain PERMITTEE input on matters related to this AGREEMENT and the implementation of the OC Stormwater Program.

8. Designate primary and secondary Stormwater Program Representative for matters related to this AGREEMENT and the implementation of the OC Stormwater Program. Designations shall be made by each CITY’s city manager, or designee, in writing to the COUNTY. Each designation shall remain in effect until revoked by the CITY’s city manager or designee.

Stormwater Program Representatives are intended to provide subject matter input and facilitate communication between the COUNTY and each CITY. For purposes of this AGREEMENT, a Stormwater Program ATTACHMENT 1
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10 Representative will not be deemed to have the authority to approve annual operating budgets on behalf of a CITY, as required in Section III.A.1, unless expressly stated in the written designation provided to the COUNTY.

D. In the unincorporated areas of the COUNTY, the COUNTY shall, at no cost to the CITIES or the DISTRICT, undertake or cause to be undertaken all activities required above of the CITIES in Section III.C that are not responsibilities of the DISTRICT as outlined in Section III.B.

IV. Orange County City Manager Association Engagement

A. In lieu of the activities of the Technical Advisory Committee under the ORIGINAL AGREEMENT, the COUNTY shall endeavor to create a working relationship with the Orange County City Manager Association (“OCCMA”) or a sub-group thereof, to address issues such as MS4 permit requirements, MS4 permit compliance methods, and funding needs and strategies to facilitate regional and/or watershed-based, multi-jurisdictional project efforts.

B. At its discretion, the COUNTY, in coordination with the PERMITTEES as set forth in this AGREEMENT, may implement recommendations (or parts thereof) that OCCMA may give on OC Stormwater Program matters, including, but not limited to, potential strategies for compliance with current and anticipated future MS4 permit requirements; funding strategies and options for MS4 permit compliance efforts; and OC Stormwater Program budgeting.

Recommendations that would result in unbudgeted costs shall be subject to Majority Approval of the PERMITTEES pursuant to III.A.1.d.

C. Under no circumstances shall this Section be interpreted as a replacement or substitute for any other responsibility of CITIES or the COUNTY under this Agreement. At the COUNTY’s discretion, the Director of OC Public Works may enter into a memorandum of understanding with OCCMA to facilitate ATTACHMENT 1
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11 procedures for OCCMA engagement under this Section. Under no circumstances shall this provision be interpreted to require any written agreement between the COUNTY and OCCMA.

V. PROGRAM COSTS

A. Annual Operating Costs.

Where not otherwise funded, the annual operating budget, including all costs of equipment, goods, COUNTY services (including, but not limited to, applicable COUNTY and COUNTY’S departmental overhead), and all professional services costs incurred by the COUNTY, and any cost of the MS4 permits, as determined by the COUNTY in its role as administrator of the OC Stormwater Program, shall be a shared cost and allocated among the COUNTY, DISTRICT, and CITIES, and paid for as follows:

Participants Percentage Contribution
DISTRICT 10
CITIES + COUNTY 90
The individual percentage contributions from each CITY and the COUNTY shall be functions of their respective dry land areas and population relative to those of the entire County of Orange. Each area shall be calculated as one-half of the sum of the area and population fractions, multiplied by 90%. National forests, state parks, airports, landfills, oceans, harbors, tidal bays, and active military installations shall be excluded from area calculations (Exhibit A-1). The contribution of the COUNTY shall be calculated from unincorporated areas and their respective populations. Should any external or alternative sources of funding become available, those funds may be directly applied to the appropriate budget(s) before the shared cost percentages are applied to the PERMITTTEES or credited to a subsequent budget.

ATTACHMENT 1
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12 Share in percent for jurisdiction #1= {(X1/Xtot) + (Y1/Ytot)}/2 x (90)

X = area

Y = population

tot = total population or area

90 = total percentage excluding the DISTRICT’s contribution

The percentage share shall be calculated by the COUNTY from population and area data. The population data shall be the most recent annual population estimates produced by the California Department of Finance, and area is based on the most recent OC Public Works survey data available to the COUNTY. Percentage share calculations shall be updated by May of each budget year for the budget year following and shall be included in annual operating budget proposals. Annual operating budget proposals shall be prepared based on the following percentage share computation methods, as applicable, and subject to exclusions in Exhibit A-1:

1. Countywide costs will be calculated as described in the process and formula above and subject to Exhibit A-1 for the entire group of PERMITTEES.

2. Regional costs, specific to only one RWQCB permit (Santa Ana Region and San Diego Region), will be calculated based on the process and formula above for PERMITTEES within the respective permit geographic area. For PERMITTEES that have jurisdiction in both permit regions, the regional costs will be based on the land area and prorated population for that permit geographic area.

3. Sub-budgets shall be based on the PARTICIPATING PERMITTEES and their corresponding area and prorated population total within the geographic area subject to the specific sub-budget.

4. In the event of a regulatory directive issued to PERMITTEES requiring amendment of any approved budget, the COUNTY shall provide immediate ATTACHMENT 1
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13 notice to the included PERMITTEES and hold discussions with respect to responding to the directive and funding the immediate response. Such budget amendments shall be subject to the Majority Approval referenced in Section III.A.1.d.

5. If at any time during a budget year costs exceed the sum of the deposits for any approved budget, and prior Majority Approval for such exceedance has been obtained, the COUNTY shall submit invoices to the involved PERMITTEES to recover the deficit. The share for each PERMITTEE shall be prorated according to the formula that was initially used to apportion budget costs. Each CITY shall pay the invoice within 45 calendar days of the billing date.

6. If at any time costs exceed the sum of the deposits for any approved budget, the COUNTY may propose a budget increase and request payment by the PERMITTEES, and PERMITTEES shall pay such amount, provided the budget increase is approved in accordance with sections III.A.1.c-d or III.A.2.c of this Agreement, as may be applicable. Until such approval is obtained and sufficient deposits received, the COUNTY may, at its sole discretion, cease carrying out approved budget components so as to limit or not incur costs in excess of deposits. Nothing in this AGREEMENT shall be construed as requiring PERMITTEES to approve budget increases.

7. The COUNTY shall prepare a budget year-end accounting within 120 calendar days of the end of the budget year and present the same to the involved PERMITTEES for review. If the budget year-end accounting results in the sum of the deposits exceeding costs (net of interest earnings), the excess deposits shall carry forward to reduce the obligation of the PERMITTEES for the following budget year and prorated to the CITIES consistent with the cost-sharing population and area data ATTACHMENT 1
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14 calculation above.

8. The COUNTY shall invoice each CITY for its annual share of each approved budget by November 30 of each budget year. Each CITY shall pay their deposit(s) within 45 calendar days of the billing date or within 45 calendar days of November 30, whichever is later. Each CITY’S deposit(s) shall be based on their prorated share(s) of the approved budget(s), reduced for any carry forward amount identified in the prior budget year-end accounting.

9. The COUNTY shall hold each CITY’s annual share of each approved budget in interest-bearing accounts and credit interest earned on each CITY’s annual share against each CITY’s share of the approved budget costs.

The COUNTY shall maintain records regarding interest earned and credited on each CITY’s annual share and provide the same to the CITIES within 120 calendar days of the end of the budget year.

10. Upon termination of this AGREEMENT, a final accounting shall be performed by the COUNTY and presented to the PERMITTEES for review. If the sum of the deposits exceeds the costs, the COUNTY shall reimburse to each CITY its prorated share of the excess, within 120 calendar days of the final accounting.

VI. LIFE OF THE AGREEMENT

The term of this AGREEMENT shall be indefinite, unless amended or terminated in accordance with this AGREEMENT.

VII. ADDITIONAL PARTIES

Any CITY which becomes incorporated after the effective date of this AGREEMENT, or requests to become a party to this AGREEMENT after previously withdrawing pursuant to Section VIII, shall be eligible to become a party to this AGREEMENT, subject to Majority Approval. In approving adding additional cities to this AGREEMENT, the PERMITTEES may ATTACHMENT 1
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15 require such conditions of the added cities as they determine necessary or advantageous. The date of initiation, for determining costs for newly incorporated cities, shall be the date of incorporation. The costs for adding additional cities to this AGREEMENT and OC Stormwater Program including, but not limited to, permit and processing fees, as well as administrative costs incurred by the COUNTY and costs to reimburse the existing PERMITTEES for unreimbursed costs related to a previous withdrawal (if applicable), shall be calculated by the COUNTY, approved by Majority Approval of the PERMITTEES and, thereafter, invoiced by the COUNTY and paid by the added city(ies) within 45 calendar days of the billing date. Monies to be reimbursed to the existing PERMITTEES shall carry forward to reduce the billings for the following budget year.

VIII. WITHDRAWAL FROM THE AGREEMENT

A CITY may withdraw from this AGREEMENT by providing at least 60 calendar days written notice to the COUNTY. The COUNTY shall notify the PERMITTEES within 10 business days of receipt of any withdrawal notice. Neither the COUNTY nor any PERMITTEE shall be responsible for advising the withdrawing CITY of the legal, regulatory, or programmatic effects of withdrawing, nor have any continuing responsibility to the withdrawing CITY upon the effective date of the withdrawal. The withdrawing CITY shall be solely responsible for any costs the withdrawing CITY may incur related to its withdrawal, including, but not limited to, penalties assessed by RWQCBs, and or other resource agencies (e.g., EPA, CDFW, etc.) in connection with or related to its withdrawal. In addition, withdrawal shall constitute forfeiture of any deposits on hand from the withdrawing CITY, for the budget year in which the withdrawal is effective. If the effective date of a withdrawal is within 60 calendar days of the beginning of any budget year, the withdrawing CITY shall be responsible for paying its annual ATTACHMENT 1
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16 share for the upcoming budget year as if it were still a PERMITTEE participating in this AGREEMENT but shall be eligible to receive a credit for any prospective carry forward amount of such annual share as may be contemplated by this AGREEMENT. The cost allocations to the remaining PERMITTEES participating in this AGREEMENT shall be recalculated and collected and/or credited as necessary in the budget year following the effective date of the withdrawal.

IX. NON-COMPLIANCE WITH PERMIT OR ORDER REQUIREMENTS

Each PERMITTEE shall remain solely responsible for its own acts and omissions with respect to compliance with requirements of an MS4 permit or other order of the RWQCBs or SWRCB to which it may be subject, and nothing herein shall be deemed to waive, release, or transfer any such responsibility to any other PERMITTEE. Nothing in this AGREEMENT shall be construed as an assumption by any PERMITTEE of any liability or obligation of another PERMITTEE, whether past, present, or future.

X. LEGAL ACTION/ COSTS/ ATTORNEY FEES

In the event of legal action to enforce any provision of this AGREEMENT, each party shall bear its own attorneys’ fees and costs, and no party shall seek to recover the same from any other party through litigation or other legal proceedings.

XI. AMENDMENTS TO THE AGREEMENT

This AGREEMENT may be amended with Majority Approval. The COUNTY and the DISTRICT shall represent one voting PERMITTEE with their percentage contribution equal to the total of the COUNTY and the DISTRICT as described in Section V. No amendment to this AGREEMENT shall be effective unless it is in writing and signed by the duly authorized representatives of the COUNTY and the required Majority Approval of PERMITTEES.

XII. NOTICES

ATTACHMENT 1
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17 All notices required under Section VIII shall be deemed duly given if delivered by hand (with written confirmation of receipt); via electronic mail (with confirmation of transmission); or three (3) days after deposit in the U.S. Mail, postage prepaid.

XIII. GOVERNING LAW

This AGREEMENT shall be governed and construed in accordance with laws of the State of California. If any provision or provisions of this AGREEMENT is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not any way be affected or impaired hereby.

XIV. CONSENT TO BREACH NOT WAIVER

No term or provision hereof shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the duly authorized representative of the PERMITTEE to have waived or consented.

Any consent by any PERMITTEE to, or waiver of, a breach by the other, whether express or implied, shall not constitute a consent to, waiver of, or excuse for any other different or subsequent breach.

XV. APPLICABILITY OF PRIOR AGREEMENTS

This AGREEMENT restates and amends the provisions in prior agreements and constitutes the entire AGREEMENT between the PERMITTEES with respect to the subject matter. All prior agreements, representations, statements, negotiations, and undertakings are superseded hereby.

XVI. EXECUTION OF THE AGREEMENT

This AGREEMENT may be executed in counterparts, and the signed counterparts shall constitute a single instrument. The parties agree that this AGREEMENT may be executed and delivered by electronic means, including via email or electronic signature platforms (e.g., DocuSign, Adobe Sign), and that such electronic signatures shall be deemed to have the same legal ATTACHMENT 1
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18 effect as original signatures. Each party agrees that electronically signed documents shall be valid, enforceable, and admissible in any legal proceeding to the same extent as a manually signed original.

XVII. NO WAIVER OF PRIVILEGE AND/OR WORK PRODUCTION PROTECTION Notwithstanding anything in this Agreement to the contrary, nothing in this AGREEMENT shall require a party to release or provide information (including any reports, communications, data, etc.) that has been deemed by that party to be subject to the attorney-client privilege, attorney work product doctrine, or any other relevant privilege and protection, including, but not limited to, any reports or information generated by a party’s consultant that was prepared in consultation with, or at the direction of, such party’s attorney or counsel of record. Nothing in this AGREEMENT shall prohibit the parties hereto from entering into future agreements, including joint defense agreements, common interest agreements, or other similar agreements to share such privileged or protected information subject to the terms and conditions of such an agreement.

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19 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the dates opposite their respective signatures:

ORANGE COUNTY FLOOD CONTROL DISTRICT
A body corporate and politic

By
Chairman of the Board of Supervisors

COUNTY OF ORANGE
A body corporate and politic

Date: By
Chairman of the Board of Supervisors

SIGNED AND CERTIFIED THAT A COPY OF THIS

AGREEMENT HAS BEEN DELIVERED TO THE

CHAIRMAN OF THE BOARD

Date: By

ROBIN STIELER
Clerk of the Board of Supervisors of
Orange County, California

APPROVED AS TO FORM COUNTY COUNSEL

ORANGE COUNTY, CALIFORNIA

By Julia Woo, Senior Deputy

Date:

///

///
ATTACHMENT 1
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20 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF ALISO VIEJO
Date:

ATTEST:

City Clerk
ATTACHMENT 1
157

21 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF ANAHEIM
Date:

ATTEST:

City Clerk
ATTACHMENT 1
158

22 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF BREA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
159

23 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF BUENA PARK
Date:

ATTEST:

City Clerk
ATTACHMENT 1
160

24 By:

City Manager

APPROVED AS TO FORM:

City Attorney

CITY OF COSTA MESA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
161

25 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF CYPRESS
Date:

ATTEST:

City Clerk
ATTACHMENT 1
162

26 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF DANA POINT
Date:

ATTEST:

City Clerk
ATTACHMENT 1
163

27 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF FOUNTAIN VALLEY
Date:

ATTEST:

City Clerk
ATTACHMENT 1
164

28 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF FULLERTON
Date: ______
ATTEST:

City Clerk
ATTACHMENT 1
165

29 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF GARDEN GROVE
Date:

ATTEST:

City Clerk
ATTACHMENT 1
166

30 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF HUNTINGTON BEACH
Date:

ATTEST:

City Clerk
ATTACHMENT 1
167

31 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF IRVINE
Date:

ATTEST:

City Clerk
ATTACHMENT 1
168

32 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LA HABRA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
169

33 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LA PALMA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
170

34 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA BEACH
Date:

ATTEST:

City Clerk
ATTACHMENT 1
171

35 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA HILLS
Date:

ATTEST:

City Clerk
ATTACHMENT 1
172

36 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA NIGUEL
Date:

ATTEST:

City Clerk
ATTACHMENT 1
173

37 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LAGUNA WOODS
Date:

ATTEST:

City Clerk
ATTACHMENT 1
174

38 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LAKE FOREST
Date:

ATTEST:

City Clerk
ATTACHMENT 1
175

39 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF LOS ALAMITOS
Date:

ATTEST:

City Clerk
ATTACHMENT 1
176

40 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF MISSION VIEJO
Date:

ATTEST:

City Clerk
ATTACHMENT 1
177

41 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF NEWPORT BEACH
Date:

ATTEST:

City Clerk
ATTACHMENT 1
178

42 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF ORANGE
Date:

ATTEST:

City Clerk
ATTACHMENT 1
179

43 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF PLACENTIA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
180

44 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF RANCHO SANTA MARGARITA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
181

45 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF SAN CLEMENTE
Date:

ATTEST:

City Clerk
ATTACHMENT 1
182

46 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF SAN JUAN CAPISTRANO
Date:

ATTEST:

City Clerk
ATTACHMENT 1
183

47 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF SANTA ANA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
184

48 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF SEAL BEACH
Date:

ATTEST:

City Clerk
ATTACHMENT 1
185

49 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF STANTON
Date:

ATTEST:

City Clerk
ATTACHMENT 1
186

50 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF TUSTIN
Date:

ATTEST:

City Clerk
ATTACHMENT 1
187

51 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF VILLA PARK
Date:

ATTEST:

City Clerk
ATTACHMENT 1
188

52 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF WESTMINSTER
Date:

ATTEST:

City Clerk
ATTACHMENT 1
189

53 By:

Mayor

APPROVED AS TO FORM:

City Attorney

CITY OF YORBA LINDA
Date:

ATTEST:

City Clerk
ATTACHMENT 1
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54 EXHIBIT A - 1

DRY LAND AREA DEDUCTED FROM JURISDICTIONS

Landfills Jurisdiction

Olinda

County
Santiago County
Prima Deschecha County
Bee Canyon County
Coyote Canyon County
State Parks
Bolsa Chica State Beach* Huntington Beach
Chino Hills State Park County
Corona Del Mar State Beach Newport Beach
Crystal Cove State Park** County
Doheny State Beach Dana Point
Huntington State Beach Huntington Beach
San Clemente State Beach San Clemente
Airports
Fullerton Fullerton
John Wayne County
Military facilities

Joint Forces Training Base - Los Alamitos Los Alamitos
Former MCAS Tustin*** Tustin
Seal Beach Naval Weapons Station**** Seal Beach
National Forests
Cleveland National Forest County

*Includes Bolsa Chica Ecological Preserve
**Includes Laguna Laurel Ecological Preserve
***Active military areas
****Includes Seal Beach National Wildlife Refuge

ATTACHMENT 1
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CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-244 Meeting Date: 5/5/2026
TITLE:

REQUEST FOR APPROPRIATION OF MEASURE M2 FAIRSHARE FUNDS FOR CITYWIDE

TRAFFIC SIGNAL MAINTENANCE
DEPARTMENT: PUBLIC WORKS DEPARTMENT / TRANSPORTATION

SERVICES DIVISION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: PAUL MARTIN, TRANSPORTATION SERVICES MANAGER, (714) 754-5343
RECOMMENDATION:

Staff recommends the City Council:

1. Authorize an appropriation of $270,000 from Measure M2 Fairshare (Fund 416) fund balance to the Citywide Traffic Signal Improvements Project (CIP #370058).

2. Approve the use of Measure M2 Fairshare and Gas Tax funds within the existing Maintenance Services Agreement (MSA) with Yunex, LLC to cover traffic signal maintenance costs.

BACKGROUND:

The Transportation Services Division has an ongoing MSA with Yunex, LLC to perform traffic signal maintenance services for the City’s 131 traffic signals, as well as various signal operations and networking equipment. The services include monthly routine maintenance and check-ups, repair of signal and networking equipment, and emergency on-call services. On April 1, 2025, the City Council amended the MSA with Yunex, LLC to increase the annual not-to-exceed (NTE) amount to $770,000, inclusive of ten percent (10%) contingency. In the Fiscal Year 2025-26 budget, $500,000 was appropriated for this account in the General Fund (Fund 101).

The current funding authority limits only the use of the General Fund and Capital Improvement Program funds for this MSA.

ANALYSIS:

The City’straffic signal maintenance budget requires additional appropriation to continue maintaining the City’s traffic signal infrastructure. In order to cover the remaining appropriation amount of $270,000, staff is proposing the use of Measure M2 Fairshare. There are adequate unappropriated funds available in the Measure M2 Fairshare balance to fund the MSA.

Staff also requests the City Council approval of the use of Measure M2 Fairshare funds, as well as

Page 1 of 2 ends

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File #: 26-244 Meeting Date: 5/5/2026
Staff also requests the City Council approval of the use of Measure M2 Fairshare funds, as well as Gas Tax for the traffic signal MSA for future appropriations, in addition to General Fund and Capital Improvement Program funds. This will provide flexibility in funding the MSA using various sources, within Council-authorized limits.

ALTERNATIVES:

The City Council could choose to reject the proposed appropriation and suspend all traffic signal maintenance operations. However, this is not recommended as it would create a public safety risk.

FISCAL REVIEW:

The Measure M2 Fairshare (Fund 416) has sufficient fund balance in the amount of approximately $1.9 million to cover the appropriation request. Approval for the use of Measure M2 Fairshare and Gas Tax funds will provide additional funding sources and flexibility for this MSA.

LEGAL REVIEW:

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

CITY COUNCIL GOALS AND PRIORITIES:

This item 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. Authorize an appropriation of $270,000 from Measure M2 Fairshare (Fund 416) fund balance to the Citywide Traffic Signal Improvements Project (CIP #370058).

2. Approve the use of Measure M2 Fairshare and Gas Tax funds within the existing MSA with Yunex, LLC to cover traffic signal maintenance costs.

Page 2 of 2 ends

193

CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 26-205 Meeting Date: 5/5/2026
TITLE:

CALL FOR REVIEW OF THE APPROVAL OF SPECIAL USE PERMIT (PGSH-24-0002) TO ALLOW A SOBER LIVING HOME WITH SIX OR FEWER RESIDENTS TO BE LOCATED AT 1601

BAKER STREET
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:

1. Find that Project (permit) is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15268 (Ministerial Projects) and 15301 (Existing Facilities).

2. Adopt a resolution upholding the Planning Commission’s decision to uphold the Hearing Officer’sissuance of Special Use Permit (PGSH-24-0002) to allow a sober living home with six or fewer persons (not counting the house manager) at 1601 Baker Street.

Page 1 of 1 ends

194

Page 1 of 10 ends

City of Costa Mesa
Agenda Report

77 Fair Drive
Costa Mesa, CA 92626
Item #: 26-205 Meeting Date: May 5, 2026
TITLE: CALL FOR REVIEW OF THE APPROVAL OF SPECIAL USE PERMIT (PGSH-24-0002) TO ALLOW A SOBER LIVING HOME WITH SIX OR FEWER RESIDENTS TO BE LOCATED AT 1601

BAKER STREET

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:

1. Find that Project (permit) is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15268 (Ministerial Projects) and 15301 (Existing Facilities).

2. Adopt a resolution upholding the Planning Commission’s decision to uphold the Hearing Officer’s issuance of the Special Use Permit (PGSH-24-0002) to allow a sober living home with six or fewer persons (not counting the house manager) at 1601 Baker Street.

APPLICANT OR AUTHORIZED AGENT:

The applicant is George Vilagut, the property owner and sole owner of Stephouse Recovery, Inc.

BACKGROUND:

On June 1, 2024, Stephouse Recovery, Inc. submitted a Special Use Permit (SUP) application to operate a sober living home for six or fewer residents, and one house manager, at the property located at 1601 Baker Street. The application was reviewed pursuant to Costa Mesa Municipal Code (CMMC) Section 13 -311, which establishes a ministerial review process for issuance of a SUP for group homes, including sober living homes, within the R-1 Single-Family Residential District.

Pursuant to Section 13-311(b), the Director is required to issue the SUP as a ministerial matter, based on the facility’s compliance with the adopted standards for location and operation: “The special use permit shall be issued by the director as a ministerial matter if the applicant is in compliance or has agreed to comply with subsections (a)(1) through (a)(14) of [Section 13-311].”

Accordingly, review is limited to the objective standards specified in the Zoning Code. At least 10 days prior to issuing a SUP, written notice is required to be mailed to the owner of record and occupants of all properties within 500 feet of the location of the sober living home. Prior to the issuance of a SUP, 195

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the Director is obligated to hold a hearing for the purpose of receiving information regarding compliance with applicable provisions pursuant to CMMC subsections 13-311(a) and (b).

The purpose of the public hearing for a SUP is to collect information on compliance with the applicable standards in Section 13-311.

For this SUP application to operate a new sober living home, the Director must determine that the proposed use complies with CMMC Section 13-311(a)(1) through (a)(14), as outlined below:

(a) A group home that may otherwise be considered an unpermitted use may locate in an R1 zone with a special use permit provided:

(1) An application for a group home is submitted to the director by the owner/operator of the group home. The application shall provide the following:

i. The name, address, phone number and driver's license number of the owner/operator;

ii. If the applicant and/or operator is a partnership, corporation, firm or association, then the applicant/operator shall provide the additional names and addresses as follows and such persons shall also sign the application:

a. Every general partner of the partnership,

b. Every owner with a controlling interest in the corporation,

c. The person designated by the officers of a corporation as set forth in a resolution of the corporation that is to be designated as the permit holder;

iii. The license and permit history of the applicant(s), including whether such applicant(s), in previously operating a similar use in this or another city, county or state under license and/or permit, has had such license and/or permit revoked or suspended, and the reason therefor;

iv. The name, address, phone number and driver's license number of the house manager;

v. A copy of the group home rules and regulations;

vi. Written intake procedures;

vii. The relapse policy;

viii. An affirmation by the owner/operator that only resi dents (other than the house manager) who are handicapped as defined by state and federal law shall reside at the group home;

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ix. Blank copies of all forms that all residents and potential residents are required to complete; and

x. A fee for the cost of processing of the application as set by resolution of the city council.

No person shall open a group home or begin employment with a group home until this information has been provided and such persons shall be responsible for updating any of this information to keep it current.

(2) The group home has six or fewer occupants, not counting a house manager, but in no event shall have more than seven occupants. If the dwelling unit has a secondary accessory unit, occupants of both units will be combined to determine whether or not the limit of six occupants has been exceeded.

(3) The group home shall not be located in an accessory secondary unit unless the primary dwelling unit is used for the same purpose.

(4) The group home has a house manager who resides at the group home or any multiple of persons acting as a house manager who are present at the group home on a 24-hour basis and who are responsible for the day-to-day operation of the group home.

(5) All garage and driveway spaces associated with the dwelling unit shall, at all times, be available for the parking of vehicles. Residents and the house manager may each only store or park a single vehicle at the dwelling unit or on any street within 500 fe et of the dwelling unit. The vehicle must be operable and currently used as a primary form of transportation for a resident of the group home.

(6) Occupants must not require and operators must not provide "care and supervision" as those terms are defined by H ealth and Safety Code section 1503.5 and section 80001(c)(3) of Title 22, California Code of Regulations.

(7) Integral group home facilities are not permitted. Applicants shall declare, under penalty of perjury, that the group home does not operate as an integral use/facility.

(8) If the group home operator is not the property owner, written approval from the property owner to operate a group home at the property.

(9) The property must be fully in compliance with all building codes, municipal code and zoning.

(10) At le ast 48 hours prior to an occupant's eviction from or involuntary termination of residency in a group home, the operator thereof shall:

i. Notify the person designated as the occupant's emergency contact or contact of record that the occupant will no longer be a resident at the home;

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ii. Contact the Orange County Health Care Agency OC Links Referral Line and/or another entity designated by the C ity to determine the services available to the occupant, including, but not limited to, alcohol and drug inpatient and outpatient treatment;

iii. Notify the City's Network for Homeless Solutions that an occupant is no longer a resident at the home, and determine the services available therefrom;

iv. Provide the information obtained from paragraphs ii and iii of this subsection (a)(10) and any other treatment provider or service to the occupant prior to his or her release on a form provided by the City and obtain t he occupant's signed acknowledgement thereon;

v. Provided, however, that if the occupant's behavior results in immediate termination of residency pursuant to rules approved by the City as part of the special use permit for that facility, the operator shall c omply with paragraphs i through iv of this subsection (a)(10) as soon as possible.

(11) Prior to an occupant's eviction from or involuntary termination of residency in a group home, the operator thereof shall also:

i. Make available to the occupant transportation to the address listed on the occupant's driver license, state -issued identification card, or the permanent address identified in the occupant's application or referral to the group home;

ii. Provided, however, that should the occupant decline transportation to his or her permanent address or otherwise has no permanent address, then the operator shall make available to the occupant transportation to another group home or residential care facility that has agreed to accept the occupant.

(12) The group home operator shall maintain records for a period of one year following eviction from or involuntary termination of residency of an occupant that document compliance with subsections (a)(10) and (a)(11) of this section; provided, however, that nothing herein shall require an operator of a group home to violate any provision of state or federal law regarding confidentiality of health care information. The group home operator may not satisfy the obligations set forth in subsection (a)(11) of this section by providing remuneration to the occupant for the cost of transportation.

(13) All drivers of vehicles picking up or dropping off persons at a group home shall comply with all applicable provisions of this Code and the Vehicle Code, including, but not limited to, those provisions regulating licensure and parking, standing and stopping.

(14) In addition to the regulations outlined above, the following shall also apply to sober living homes:

i. The sober living home is not located within 650 feet, as measured from the closest property lines, of any other sober living home or a state licensed alcoholism or drug abuse recovery or treatment facility.
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ii. All occupants, other than the house manager, must be actively participating in legitimate recovery programs, including, but not limited to, Alcoholics Anonymous or Narcotics Anonymous and the sober living home must maintain current records of meeting a ttendance. Under the sober living home's rules and regulations, refusal to actively participate in such a program shall be cause for eviction.

iii. The sober living home's rules and regulations must prohibit the use of any alcohol or any non-prescription drugs at the sober living home or by any recovering addict either on or off site. The sober living home must also have a written policy regarding the possession, use and storage of prescription medications. The facility cannot dispense medications but must make them available to the residents. The possession or use of prescription medications is prohibited except for the person to whom they are prescribed, and in the amounts/dosages prescribed. These rules and regulations shall be posted on site in a common area inside the dwelling unit.

Any violation of this rule must be cause for eviction under the sober living home's rules for residency and the violator cannot be re-admitted for at least 90 days. Any second violation of this rule shall result in permanent evic tion. Alternatively, the sober living home must have provisions in place to remove the violator from contact with the other residents until the violation is resolved.

iv. The number of occupants subject to the sex offender registration requirements of Penal Code section 290 does not exceed the limit set forth in Penal Code section 3003.5 and does not violate the distance provisions set forth in Penal Code section 3003.

v. The sober living home shall have a written visitation policy that shall preclude any visitors who are under the influence of any drug or alcohol.

vi. The sober living home shall have a good neighbor policy that shall direct occupants to be considerate of neighbors, including refraining from engaging in excessively loud, profane or obnoxious b ehavior that would unduly interfere with a neighbor's use and enjoyment of their dwelling unit. The good neighbor policy shall establish a written protocol for the house manager/operator to follow when a neighbor complaint is received.

vii. The sober living home shall not provide any of the following services as they are defined by section 10501(a)(6) of Title 9, California Code of Regulations:
detoxification; educational counseling; individual or group counseling sessions; and treatment or recovery planning.

(b) The special use permit shall be issued by the director as a ministerial matter if the applicant is in compliance or has agreed to comply with subsections (a)(1) through (a)(14) of this section. At least 10 days prior to issuing a special use permit, the director shall cause written notice to be mailed to the owner of record and occupants of all properties within 500 feet of the location of the group home. Prior to issuance of the special use permit, the director shall hold a public hearing for the purpose of receiving information regarding compliance with the applicable provisions of subsections (a) and (b) of this section. The issuance of the special 199

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use permit shall be denied upon a determination, and if already issued shall be denied or revoked upon a hearing, by the director that any of the following circumstances exist:

(1) Any owner/operator or staff person has provided materially false or misleading information on the application or omitted any pertinent information;

(2) Any owner/operator or staff person has an employment history in which he or she was terminated during the past two years because of physical assault, sexual harassment, embezzlement or theft; falsifying a drug test; and selling or furnishing illegal drugs or alcohol.

(3) Any owner/operator or staff person has been convicted of or pleaded nolo contendere, within the last seven to 10 years, to any of the following offenses:

i. Any sex offense for which the person is required to register as a sex offender under California Penal Code section 290 (last 10 years);

ii. Arson offenses—Violations of Penal Code Sections 451—455 (last seven years); or

iii. Violent felonies, as defined in Penal Code section 667.5, which involve doing bodily harm to another person (last 10 years).

iv. The unlawful sale or furnishing of any controlled substances (last seven years).

(4) Any owner/operator or staff person is on parole or formal probation supervision on the date of the submittal of the application or at any time thereafter.

(5) The owner/operator accepts residents, o ther than a house manager, who are not handicapped as defined by the FHAA and FEHA.

(6) A special use permit for a sober living home shall also be denied upon a determination, and if already issued, any transfer shall be denied or revoked, upon a hearing, by the director that any of the following additional circumstances exist:

i. Any owner/operator or staff person of a sober living home is a recovering drug or alcohol abuser and upon the date of application or employment has had less than one full year of sobriety.

ii. The owner/operator of a sober living home fails to immediately take measures to remove any resident who uses alcohol or illegally uses prescription or non - prescription drugs, or who is not actively participating in a legitimate recovery program from contact with all other sober residents.

iii. The sober living home, as measured by the closest property lines, is located within 650 feet of any other sober living home or state licensed alcoholism or drug abuse recovery or treatment facility. If a state-licensed alcoholism or drug abuse recovery or treatment facility moves within 650 feet of an existing sober living home this 200

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shall not cause the revocation of the sober living home's permit or be grounds for denying a transfer of such permit.

(7) For any other significant and/or repeated violations of this section and/or any other applicable laws and/or regulations, including, but not limited to, failure to comply with the provisions of subsections (a)(10) through (13).

(8) Revocation shall not apply to any group home, which otherwise would cause it to be in violation of this section, that has obtained a reasonable accommodation pursuant to section 13-200.62

Staff reviewed the application and supporting materials and determined that the project satisfies the provisions and requirements of CMMC Section 13-311, subsections (a) and (b). Based on this review, no disqualifying grounds have been identified at this time.

On October 23, 2025, a hearing was held before a hearing officer acting as the designee of the Director of Economic and Development Services to consider SUP Application No. PGSH -24-0002.

The purpose of the hearing was to receive information and testimony regarding the Applicant’s compliance with the objective standards set forth in subsections (a) and (b) of Section 13-311.

On January 5, 2026, after reviewing the application materials, hearing testimony and re-submittal of certain information by the applicant, the SUP was issued by the Hearing Officer.

On January 7, 2026, Mayor Stephens submitted a timely “application for review” of the approval pursuant to CMMC Section 2 -302. Mayor Stephens listed conc erns regarding “impacts to neighborhood of sober living home operations” (Attachment 4).

On February 23, 2026, the Planning Commission upheld the decision of the Hearing Officer’s approval of Special Use Permit (PGSH -24-0002) to allow a sober living home with six or fewer persons (not counting the house manager).

On March 2, 2026, Council Member Buley submitted a timely “application for review” of the Planning Commission’s decision pursuant to CMMC Section 2 -302. The request was made to provide the community with an opportunity to voice concerns before the City Council and to allow the Council to review any opposition or request additional information regarding the Special Use Permit (Attachment 10).

ANALYSIS:

Section CMMC 13-311 establishes a ministerial review process for the Special Use Permit. As stated in the Hearing Officer’s determination, the permit complies with CMMC Sections 13-32, 13-85 and 13- 311, as shown in Table 1 above. The home will accommodate six recovery residents and one full-time house manager ensuring adherence to the maximum occupancy limit. The group home will be in the primary dwelling unit, with no accessory dwelling unit on the property, meeting zoning standards that prohibit group homes in accessory units unless both units serve the same purpose. Parking requirements are satisfied, as the five-bedroom home requires a minimum of four parking spaces, and the property provides five on-site spaces—two in the garage and three in the driveway. Additionally, there are no other sober living homes or state-licensed alcoholism or drug abuse recovery or treatment 201

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facilities within a 650 -foot radius of the proposed residence, ensuring compliance with the required separation distance. Furthermore, the application includes all requir ed documentation in compliance with CMMC Section 13-311, including the written intake procedures and relapse policy.

Based on the information initially provided and subsequently revised, the SUP application was approved, subject to the following conditions:

1. Prior to operation of the sober living home, the applicant shall schedule and pass an inspection by the Costa Mesa Fire and Rescue Department to verify that the property meets the basic fire and life safety requirements for a single-family dwelling, including but not limited to the installation of smoke detectors and carbon monoxide (CO) detectors.

2. Failure to comply with the requirements listed in CMMC Section 13 -311 may result in the revocation of this permit.

Planning Commission Review

In its review of the project, the Planning Commission considered the SUP to allow a sober living home with six or fewer persons (not counting the house manager).

During deliberations, the Planning Commission inquired about Stephouse Recovery’s operation, seeking clarification on whether it functions as a treatment facility or sober living home and if it is currently operating. Commissioners also questioned staff regarding CMMC requirements, separation requirement of any other sober living home or a state licensed alcoholism or drug abuse recovery or treatment facility, and issues raised at the Hearing Officer hearing. Staff responded to the Commission’s inquiries, clarifying that Stephouse Recovery is not currently operating as a sober living home at this location and is not located within 650-feet from another of any other sober living home or a state licensed alcoholism or drug abuse recovery or treatment facility. The Commission questioned whether as a de novo hearing if they could consider all aspects of the application including if their review is not limited to the question raised in the call up for review if there is an impact to the neighborhood or not. The City Attorney’s Office explained that the Planning Commission’s review is limited to determining whether the applicant complies with the requirements set forth in Section 13-311 of the CMMC.

Seven members of the public provided comments and noted their concerns about the potential operation of Stephouse Recovery , emphasizing neighborhood safety, compatibility with the single - family residential area, and possible increases in traffic, noise, and crime associated with a congregate recovery residence. Several speakers also questioned the applicant’s compliance with the Municipal Code and consistency of information provided.

The Planning Commission voted 7-0, to uphold the Hearing Officer’s issuance of Special Use Permit (PGSH-24-0002) and adopted Resolution No. PC -2026-06 (Attachment 7). As part of motion discussion, several commissioners expressed the limited scope of the Commission’s review, with members emphasizing that the decision was ministerial and confined to determining whether the applicant complied with municipal code requirements. Two Commissioners stated they did not find new evidence that would justify overturning the approval and noted their role is to apply existing City Council policies, not create or modify them. While acknowledging and expressing empathy for neighbors’ concerns about safety and neighborhood impacts, two Commissioners reiterated that the application 202

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met the code standards before them. One Commissioner indicated they would support the motion based on compliance with the established regulations, despite reservations about broader policy issues.

Call for Review of Planning Commission’s Approval

On March 2, 2026, a call for review of the Planning Commission’s approval of the project was filed by Council Member Buley. The application for review noted that t he request was made to provide the community with an opportunity to voice concerns before the City Council and to allow the Council to review any opposition or request additional information regarding the SUP.

Appeal and Call to Review Procedures

CMMC Title 2, Chapter IX, governs the City’s appeal and review procedures. Section 2-309(4) states that an appeal from a decision of any committee or commission shall be made to the City Council. Any appeal must be filed in accordance with the procedures set forth in the Municipal Code and accompanied by the applicable processing fee.

Section 2-303(4) states that an appeal hearing shall consist of a new (i.e., de novo) hearing on the matter by the person or body specified in Section 2 -309. The appeal hearing shall be based on the following evidence:

(a) Any relevant evidence, including staff reports, etc., submitted at the time of the prior decision and at the appeal hearing; and
(b) Findings, if any, and decision of the person or body whose decision is being appealed.

As a de novo hearing, the City Council may consider new evidence. However, the Council’s review is limited to determining whether the applicant complies, or has agreed to comply, with the objective standards set forth in subsections (a) and (b) of Section 13-311.

Pursuant to CMMC Chapter IX, Section 2-303(6), the applicant for the original decision shall have the burden of proof to support the granting of the approval action at the appeal.

Staff has attached a draft City Council resolution f or approval based on the Planning Commission’s February 23, 2026, decision. Notwithstanding this, should the City Council determine to overturn the Planning Commission’s decision, staff requests that the City Council articulate its reasons for denial so staff can incorporate these into a written resolution.

The City Council’s action to uphold or overturn the Planning Commission’s decision would constitute the final administrative decision of the City. Any court challenge to the decision must be filed wit hin the time limits established by California Code of Civil Procedure Section 1094.6 and California Government Code Section 65009.

ENVIRONMENTAL DETERMINATION:

The project (permit) is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15268 (Ministerial Projects) and 15301 (Existing Facilities).

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ALTERNATIVES:

City Council alternatives include the following:

1. Uphold the decision of the Planning Commission upholding the Hearing Officer’s decision.

2. Determine that the application does not meet the requirements of Section 13 -311, overturn the Planning Commission’s decision, and thereby deny the permit.

FISCAL REVIEW:

There is no fiscal impact to the adoption of a resolution upholding the Planning Commission’s decision.

LEGAL REVIEW:

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

PUBLIC NOTICE:

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

1. Mailed notice. A public notice was mailed to all property owners and occupants within a 500- foot radius of the project site on Wednesday, April 22, 2026. The required notice radius is measured from the external boundaries of the property.

2. On-site posting. A public notice was posted on the street frontage of the project site on Thursday, April 23, 2026.

3. Newspaper publication. A public notice was published once in the Daily Pilot newspaper on Friday, April 24, 2026.

As of the date of this report, no written public comment has been received. See Attachment 5 for the Hearing Officer public comments and see Attachment 9 for the Planning Commission public comments.

Any public comments received for the May 5, 2026, City Council meeting, may be viewed at this link:

CITY OF COSTA MESA - Calendar (legistar.com)

CONCLUSION:

Based on the evidence in the record, the Hearing Officer determined that the application complies with CMMC Section 13-311. Upon review, and based on the evidence in the record, the Planning Commission determined that the application complies with CMMC Section 13-311. Therefore, staff recommends the City Council uphold the Planning Commission’s decision to uphold the Hearing Officer’s issuance of Special Use Permit (PGSH-24-0002).

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ATTACHMENT 1
Resolution No. 2026- xx Page 1 of 3

RESOLUTION NO. 2026-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COSTA MESA, CALIFORNIA, UPHOLDING THE DECISION

OF THE PLANNING COMMISSION TO UPHOLD THE
HEARING OFFICER’S APPROVAL OF SPECIAL USE
PERMIT PGSH-24-0002 TO ALLOW A SOBER LIVING HOME

WITH SIX OR FEWER PERSONS (NOT COUNTING THE
HOUSE MANAGER) TO BE LOCATED AT 1601 BAKER ST

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

WHEREAS, on June 1, 2024, Planning Application PGSH -24-0002 was filed by George Vilagut, as applicant, property owner, and sole owner of Stephouse Recovery, Inc., requesting approval of Planning Application PGSH-24-0002 for a Special Use Permit (SUP) to allow the operation of a sober living home with six or few persons (not counting the house manager) at 1601 Baker Street; and
WHEREAS, staff reviewed the application and supporting materials and determined that the project satisfies the provisions and requirements of CMMC Section 13-311, subsections (a) and (b) , and that no disqualifying grounds had been identified; and
WHEREAS, on October 23, 2025, a duly noticed public hearing was held before a Hearing Officer, acting as designee of the Director of Economic and D evelopment Services, to consider SUP Application No. PGSH -24-0002, with all persons having the opportunity to submit written comments for and against the proposal, pursuant to Costa Mesa Municipal Code Section 13-311, for the purpose of receiving information regarding the Applicant’s compliance with the applicable provisions of subsections (a) and (b) of Section 13-311; and
WHEREAS, on December 23, 2025, the Director provided a written notice to the applicant and the owners and occupants of all properties within 500 feet of the location of the sober living home that the SUP was going to be approved based on compliance with Costa Mesa Municipal Code Section 13-311, subject to conditions of approval and CMMC requirements; and
WHEREAS, on January 5, 2026, the Hearing Officer issued SUP PGSH-24-0002; and
205
Resolution No. 2026- xx Page 2 of 3

WHEREAS, on January 7, 2026, Mayor Stephens submitted a timely “Application for Review” of the Hearing Officer’s approval of SUP PGSH-24-0002 pursuant to CMMC Title 2, Chapter IX; and
WHEREAS, a duly noticed public hearing was held by the Planning Commission on February 23, 2026, with all persons having the opportunity to speak for and against the proposal; and
WHEREAS, on February 23, 2026, the Planning Commission upheld the decision of the Hearing Officer’s approval of Special Use Permit PGSH-24-0002 to allow a sober living home with six or fewer persons (not counting the house manager); and WHEREAS, on March 2, 2026, Council Member Buley submitted a timely “application for review” of the Planning Commission’s decision in a timely manner; and WHEREAS, a duly noticed public hearing was held by the City Council on May 5, 2026, with all persons having the opportunity to speak for and against the proposal; and WHEREAS, pursuant to the California Environmental Quality Act (CEQA) the project is exempt from the provisions of CEQA pursuant to Sections 15268 (Ministerial Projects) and 15301 (Existing Facilities); and
WHEREAS, the CEQA categorical exemption for this project reflects the independent judgement of the City of Costa Mesa; and
WHEREAS, the City Council finds that the application meets the criteria for issuance of the SUP pursuant to CMMC Section 13-311.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES as follows:

BE IT RESOLVED that based on the evidence in the record, the City Council hereby UPHOLDS THE PLANNING COMMISSION’S DECISION ON SUP PGSH -24- 0002.

BE IT FURTHER RESOLVED that if any section, division, sentence, clause, phrase or portion of this resolution, or the document in the record in support of this resolution, are for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions.

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Resolution No. 2026- xx Page 3 of 3

PASSED AND ADOPTED this 5th day of May, 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 for egoing is the original of Resolution No. 2026-xx and was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on the 5
th day of May, 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 6
th day of May, 2026.

___________________________
Brenda Green, City Clerk
207

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT
77 FAIR DRIVE, POST OFFICE BOX 1200, COSTA MESA CA. 92628-1200 Building Safety Division (714) 754-5273 Community Improvement Division (714) 754-5638 Housing & Community Development (714) 754-4870 Planning Division (714) 754-5245 www.costamesaca.gov
1 | Page

MEMORANDUM
Item #: 25-01 Public Hearing Date: 10/23/2025
LOCATION:
1601 BAKER STREET
FILE NO: PGSH-24-0002

REQUEST F
OR: ALLOW A SOBER LIVING HOME WITH SIX OR FEWER PERSONS (NOT COUNTING THE HOUSE MANAGER)

APPLICA
NT: GEORGE VILAGUT ON BEHALF OF STEPHOUSE RECOVERY INC.

CEQA: PROJ
ECT IS EXEMPT FROM CEQA: SECTION 15268 –
MINISTERIAL PROJECTS AND SECTION 15301 – EXISTING

FACILITIES
PLANNER:

VICTOR MENDEZ

GENERAL
PLAN: LOW DENSITY RESIDENTIAL (LDR)
ZONING: R- 1 – SINGLE FAMILY RESIDENTIAL
The Spe
cial Use Permit (SUP) application (PGSH -24-0002) has been filed for a proposed single-unit sober living home, which will accommodate six recovery residents and one live- in house manager. The proposed site is located at 1601 Baker Street within the R1 zoning district and has been submitted by George Vilagut on behalf of Stephouse Recovery Inc.

The project site encompasses approximately 0.16 acres and consists of a single parcel. It is currently developed with a 2,500 square -foot single -family residence built in 1959. The surrounding area consists of -family residential properties to the west, south, and east, with additional single-family homes located across Baker Street.

BACKGROUND
Facilities licensed by the state to care for up to six residents are exempt from local regulation per state law. However, in accordance with Costa Mesa Municipal Code (CMMC) Title 13, -1-
ATTACHMENT 2
208

Presently, the Director of Economic and Development Services is authorized to issue the special
use permit as a ministerial permit , based on the facility’s compliance with the adopted standards for location and operation. As a ministerial permit, review is limited to the objective standards identified in the zoning ordinance. At least 10 days prior to issuing a special use permit, the D irector shall direct written notice to be mailed to the owner of record and occupants of all properties within 500 feet of the location of the group home to serve as notification of the permit and the hearing . Prior to the issuance of a SUP, the Director is obligated to hold a hearing, for the purpose of receiving information regarding compliance with applicable provisions pursuant to Costa Mesa Municipal Code (CMMC) subsections 13 -311(a) and (b), in accordance with the limitations of a ministerial permit review.

The purpose of the public hearin
g for a Special Use Permit for an unlicensed group home of six or fewer occupants (excluding the housing manager) is strictly to collect information on compliance with the applicable standards in Costa Mesa’s Municipal Code (e.g. § 13- 311). It is a ministerial process — staff’s role is limited to verifying whether the application conforms to the ordinance, not making discretionary judgments.

Comments or concerns submitted by the public become part of the record and may provide factua
l evidence relevant to compliance. Staff and the applicant may respond to or clarify such information, but all decisions must be grounded in the objective requirem ents of the ordinance.The only instances the special use permit can be denied or revoked upon a determination, and if already issued shall be denied or revoked upon a hearing, by the Director that any of the following circumstances exist:
(1) Any owner/operator or staff person has provided materially false or misleading information on the application or omitted any pertinent information; (2) Any owner/operator or staff person has an employment history in which he or she was terminated during the past two years because of physical assault, sexual harassment, embezzlement or theft; falsifying a drug test; and selling or furnishing illegal drugs or alcohol.
(3) Any owner/operator or staff person has been convicted of or pleaded nolo contendere, within the last seven to 10 years, to any of the following offenses:
i. Any sex offense for which the person is required to register as a sex offender under California Penal Code section 290 (last 10 years); -2-
209

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT

77 FAIR DRIVE, POST OFFICE BOX 1200, COSTA MESA CA. 92628-1200 Building Safety Division (714) 754-5273 Community Improvement Division (714) 754-5638 Housing & Community Development (714) 754-4870 Planning Division (714) 754-5245 www.costamesaca.gov
3 | Page

ii. Arson offenses—Violations of Penal Code Sections 451—455 (last seven years); or

iii. Violent felonies, as defined in Penal Code section 667.5, which involve doing bodily harm to another person (last 10 years).

iv. The unlawful sale or furnishing of any controlled substances (last seven years).

(4) Any owner/operator or staff person is on parole or formal probation supervision on the date of the submittal of the application or at any time thereafter.

(5) The owner/operator accepts residents, other than a house manager, who are not handicapped as defined by the FHAA and FEHA.

(6) A special use permit for a sober living home shall also be denied upon a determination, and if already issued, any transfer shall be denied or revoked, upon a hearing, by the Director that any of the following additional circumstances exist:

i. Any owner/operator or staff person of a sober living home is a recovering drug or alcohol abuser and upon the date of application or employment has had less than one full year of sobriety.

ii. The owner/operator of a sober living home fails to immediately take measures to remove any resident who uses alcohol or illegally uses prescription or non- prescription drugs, or who is not actively participating in a legitimate recovery program from contact with all other sober residents.

-3-
210

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT

(8) Revocation shall not apply to any group home, which otherwise would cause it to be in violation of this section, that has obtained a reasonable accommodation pursuant to section 13-200.62

STANDAR

D OF REVIEW
The project complies with CMMC Sections 13-32, 13-85 and 13-311, as shown in the project data table below. The home will accommodate six recovery resident s and one full -time house manager ensuring adherence to the maximum occupancy limit. The group home will be in the primary dwelling unit, with no accessory dwelling unit on the property, meeting zoning standards that prohibit group homes in accessory units unless both units serve the same purpose. Parking requirements are satisfied, as the five-bedroom home requires a minimum of four parking spaces , and the property provides five on -site spaces—two in the garage and three in the driveway . Additionally, there are no other sober living homes or state-licensed alcoholism or drug abuse recovery or treatment facilities within a 650-foot radius of the proposed residence, ensuring compliance with the required separation distance. Furthermore, the application includes all required documentation in compliance with CMMC Section 13-311, including the written intake procedures and relapse policy.

Based on the information provided and after a thorough review, the SUP application is approved, subject to the following conditions:

1. Prior to operation of the sober living home, the applicant shall schedule and pass an inspection by the Costa Mesa Fire Department to verify that the property meets the basic fire and life safety requirements for a single -family dwelling, including but not limited to the installation of smoke detectors and carbon monoxide (CO) detectors.

2. Failure to comply with the requirements listed in CMMC Section 13-311 may result in the revocation of this permit.

PROJECT DATA TABLE - COMPLIANCE WITH KEY DEVELOPMENT STANDARDS

Zoning Section DEVELOPMENT

STANDARD CODE REQUIREMENT PROPOSED/

PROVIDED MEETS CODE
Residential
Development
Standards - R1
Zone (CMMC 13-
32)

Minimum Lot Area 6,000 SF 7,384 SF ✅ Yes

Maximum
Building/Structure Height 2 Stories / 27 FT 1 story / 15 FT 2 IN ✅ Yes

-4-
211

ECONOMIC & DEVELOPMENT SERVICES DEPARTMENT

PROJECT DATA TABLE - COMPLIANCE WITH KEY DEVELOPMENT STANDARDS

Zoning Section DEVELOPMENT

STANDARD CODE REQUIREMENT PROPOSED/

PROVIDED MEETS CODE
Maximum Density 1 Dwelling Unit per
6,000 Square Feet
1 Dwelling
Unit ✅ Yes

Setbacks:

Front 20 FT 20 FT ✅ Yes
Side – Left (Interior) 5 FT 11 FT ✅ Yes
Side – Right (Interior) 5 FT 7 FT ✅ Yes
Rear 10 FT 14 FT 6 IN ✅ Yes

Front 20 FT 20 FT ✅ Yes

Residential Off-
Street Parking
Standards - R1
Zone (CMMC 13-
85)
Parking:

Standard 4 5 ✅ Yes

Group Homes - R1
Zone (CMMC 13-
311)
Primary vs Accessory
Dwelling Unit
Group Home Must be in
a Primary Dwelling
Unit; Not Allowed in an
Accessory Unit Unless
the Primary Unit is
Used for the Same
Purpose
Located in the
Primary
Dwelling Unit;
No Accessory
Secondary
Unit on the
Property or
Proposed
✅ Yes
Maximum Number of
Occupants
6 or Fewer Occupants
(Excluding House
Manager)
6 Occupants
(Excluding
House
Manager)
✅ Yes
Minimum Distance From
Another Sober Living
Home or State Licensed
Alcoholism or Drug
Abuse Recovery or
Treatment Facility
≥ 650 FT From Another
Sober Living Home or
State Licensed Facility
Not Located
Within 650 FT
of Another
Facility
✅ Yes

-5-
212
Zoning Section DEVELOPMENT STANDARD CODE REQUIREMENT PROPOSED/PROVIDED MEETS CODE Minimum Lot Area 6,000 SF 7,384 SF ✅ Yes
Maximum Building/Structure Height 2 Stories / 27 FT 1 story / 15 FT 2 IN ✅ Yes Maximum Density 1 Dwelling Unit per 6,000
Square Feet 1 Dwelling Unit ✅ Yes
Front 20 FT 20 FT ✅ Yes
Side – Left (Interior) 5 FT 11 FT ✅ Yes
Side – Right (Interior) 5 FT 7 FT ✅ Yes
Rear 10 FT 14 FT 6 IN ✅ Yes
Front 20 FT 20 FT ✅ Yes
Standard 4 5 ✅ Yes
Primary vs Accessory Dwelling Unit
Group Home Must be in a
Primary Dwelling Unit; Not
Allowed in an Accessory Unit
Unless the Primary Unit is
Used for the Same Purpose
Located in the Primary Dwelling Unit;
No Accessory Secondary Unit on the
Property or Proposed
✅ Yes
Maximum Number of Occupants 6 or Fewer Occupants
(Excluding House Manager)
6 Occupants (Excluding House
Manager) ✅ Yes
Minimum Distance From Another Sober
Living Home or State Licensed Alcoholism
or Drug Abuse Recovery or Treatment
Facility
≥ 650 FT From Another Sober
Living Home or State Licensed
Facility
Not Located Within 650 FT of Another
Facility ✅ Yes

PROJECT DATA TABLE - COMPLIANCE WITH KEY DEVELOPMENT STANDARDS Residential Development Standards - R1
Zone (CMMC 13-32)
Residential Off-Street Parking Standards
- R1 Zone (CMMC 13-85)
Group Homes - R1 Zone (CMMC 13-311)
Parking:

Setbacks:

ATTACHMENT 1
-6-
213
12'-3"
11'
BEDROOM#4
BEDROOM#5
BEDROOM#3
BEDROOM#2
BEDROOM#1

KITCHEN
LIVING
ROOM
DINING
PROPERTY LINE = 67'
PROPERTY LINE = 103'
GARAGE
7' GATE
7'' BLOCK WALL FENCE

PCC CITY SIDEWALK

EASEMENT

BAKER ST
A0
='1'
40'
1 VICINITY MAP

PROJECT DATA

PLAN SHEETS
ATTACHMENT 2
-7-
214
12'-3"
11'
BEDROOM#4
BEDROOM#5
BEDROOM#3
BEDROOM#2
BEDROOM#1

KITCHEN
LIVING
ROOM
DINING
PROPERTY LINE = 67'
PROPERTY LINE = 103'
GARAGE
7' GATE
7'' BLOCK WALL FENCE

PCC CITY SIDEWALK

EASEMENT
A1
24"
30"
15"15"

TYPICAL TOILET MINIMUM CLEARANCE REQUIREMENTS

CLEARANCE FOR WATER CLOSETS TO BE A MINIMUM
OF 24" IN FRONT ND 15" FROM CENTER TO ANY SIDE
WALL OR OBSTRUCTION.
='1'
40'
-8-
215
7'-10"
15'-2"
12'-8"

REAR ELEVATION
A2

NORTH ELEVATION

SOUTH ELEVATION
-9-
216
STUCCO
ROOF

GLASS ALUMINUM

WOODEN DOOR GLASS

ALUMINUM
STUCCO
ROOF
A3

EAST ELEVATION

WEST ELEVATION
-10-
217

BAKER STREET

PROPERTY LINE

FENCE SOLAR

PROPERTY LINE

BOUNDARY WALL

DRIVEWAY
105'-8"
67'-5"
105'-9"

EXISTING DWELLING

SITE PLAN
Scale 1/8" = 1'-0"

ROOF PLANS

GENERAL NOTES

1. INSULATION HAS 1" MIN. AIR SPACE ABOVE IN VAULTED CEILING.

2. INSTALLATION OF ROOFING SHALL BE IN ACCORDANCE WITH
MANUFACTURES SPECIFICATIONS.

3. COMPOSITION SHINGLE ROOF OVER LAPPED 30# A.S. FELT (TYP. THRU OUT)

4. COORDINATE INSTALLATION OF NEW ROOFING WITH OTHER TRADES.

REPORT ANY CONFLICTS WITH ITEMS INSTALLED BY OTHER TRADES TO DESIGNER.

5. ALL ROOF CURBS FOR NEW ROOFTOP EXHAUST FANS , HVAC UNITS AND

CONDENSING UNITS SHALL HAVE CURB HEIGHTS THAT WILL ALLOW FOR A MINIMUM OF 8" BASE FLASHING HEIGHTS FOR THE ROOF SYSTEM.

6. ALL PLUMBING VENTS SHALL EXTEND ABOVE THE FINISHED SURFACE OF THE ROOF SYSTEM AS REQUIRED TO PROVIDE FOR A MINIMUM OF 8" BASE FLASHING.

7. PROVIDE 36" WIDE WALK PADS @ SERVICE SIDE OF ALL MECH. EQUIPMENT.

8. ALL EXPOSED METAL FLASHING/ TRIM PIECES TO BE PRE-FINISHED 24 GA.

STL. U.N.O.. PROVIDE PRE-FINISHED OR FIELD PAINT FLASHING ONLY AS NOTED.

9. R903.4.1 OVERFLOW DRAINS AND SCUPPERS. WHERE ROOF DRAINS ARE

REQUIRED, OVERFLOW DRAINS HAVING THE SAME SIZE AS THE ROOF DRAINS SHALL BE INSTALLED WITH THE INLET FLOW LINE LOCATED 2 INCHES (51 MM) ABOVE THE LOW POINT OF THE ROOF, OR OVERFLOW

SCUPPERS HAVING THREE TIMES THE SIZE OF THE ROOF DRAINS AND HAVING A MINIMUM OPENING HEIGHT OF 4 INCHES (102 MM) SHALL BE

INSTALLED IN THE ADJACENT PARAPET WALLS WITH THE INLET FLOW LOCATED 2 INCHES (51 MM) ABOVE THE LOW POINT OF THE ROOF SERVED.

THE INSTALLATION AND SIZING OF OVERFLOW DRAINS, LEADERS AND CONDUCTORS SHALL COMPLY WITH THE CALIFORNIA PLUMBING CODE.

10. PROVIDE ICE BREAKS AT ALL PERIMETER AREAS OF STANDING SEAM ROOFING.

11. PROVIDE 36" WIDE WALK PADS @ SERVICE SIDE OF ALL MECH. EQUIPMENT. & PROVIDE 36" WIDE WALK PADS AROUND ALL ROOF HATCHES & 72"X72" PADS AT LADDERS.

12. ALL EXPOSED METAL FLASHING/ TRIM PIECES TO BE PRE-FINISHED 24 GA.

STL. U.N.O.. PROVIDE PRE-FINISHED OR FIELD PAINT FLASHING ONLY AS NOTED.

13. GUTTERS - ALL GUTTERS TO BE PRE-FINISHED 24 GA. STL. . PROVIDE PRE-FINISHED GALV. STL. BENT PLATE BRACKETS AND 14GAX1" GALV. STL.

SPACERS @ 36" O.C. MAX. - STAGGER W/ EACH OTHER @ 18" O.C.. PROVIDE

PRE-FORMED

14. GUTTER E.J.'S PER SMACNA FIG. 1-7, TYP. @ 30'-0" MAX.. PROVIDE S.S.

SCREENS @ ALL GUTTERS PER SMACNA FIG 1-24.

15. ALL DOWNSPOUTS TO BE PRE-FINISHED 24 GA. GALV. STL., PER SMACNA FIG 1-32B. DOWNSPOUTS ARE 6"X6" U.N.O., LOCATED AS NOTED ON ROOF PLAN. 15GA.X2" GALV. STL. HANGERS @ 48" O.C. MAX. PER SMACNA FIG 1-35B.

16. PROVIDE PAINTED 4' TALL CAST ALUM. DOWNSPOUT BOOTS @ ALL DOWN SPOUTS, TIE INTO SUB-GRADE DRAINAGE, RE: CIVIL.

17. TAPERED INSULATION TO BE 1/4" PER FOOT MIN. SLOPE TO DRAIN. ROOF PLAN SHOWS TAPERED INSULATION FOR GRAPHIC REPRESENTATION ONLY.

CONTRACTOR TO VERIFY INSULATION REQUIRED TO SLOPE PRIOR TO MEMBRANE INSULATION.

18. PROVIDE TAPERED INSULATION CRICKETS 1/4" PER FOOT MIN. SLOPE @

HIGH SIDE OF ALL MECHANICAL UNITS AND ROOF HATCHES, TO SHED WATER AROUND AND MAINTAIN POSITIVE ROOF DRAINAGE.

19. ALL WOOD BLOCKING AT ROOF EDGES, RIDGES, ETC. TO BE 2X FR-WD BLOCKING.

20. VERIFY ELEVATION OF ROOF DRAIN RELATIVE TO OVERFLOW SCUPPER

PRIOR TO INSTALLATION OF SCUPPERS
A4
1/2" CDX PLY

APROVED

ROOF COVERING

ALTERNATE LOCATION
OF GWB OR 2X

BLOCKING IF NO

CEILING FINISH IS
2X4 BLOCK
FASCIA

PROVIDED
SOFFIT
BOARD
5/8 TYPE X

GYPSUM SHEATING

STUCCO FINISH
5/8 TYPE X
GYPSUM

WALLBOARD
2X FRAMING

STRUCTURAL

SHEATING AS

REQUIRED
1 HOUR RATED WALL AND4SCALE: NTS PROTECTED EAVE OVERHANG NOTES:
4" MIN.
- THE ROOF OVERHANG CANNOT EXCEED 12" AND MUST BE

ONE-HOUR PROTECTED OR EQUAL ON UNDERSIDE IF ADU IS
LOCATED UNDER 5' FROM PROPERTY LINE OVERHANG SHALL BE
ADJUSTED TO MIN. REQUIRED. AS PER CODE SECTION R302
12" OR
-11-
218
8'-0"

A-A (NTS)
A5
51 HOUR FIRE - GENERICSCALE: NTS EXTERIOR WALLS

GYPSUM WALLBOARD, GYPSUM SHEATHING, WOOD STUDS
EXTERIOR SIDE: ONE LAYER 48" WIDE 5/8" TYPE X GYPSUM
SHEATHING APPLIED PARALLEL TO 2X4 WOOD STUDS 24" O.C.

WITH 1-3/4" GALVANIZED ROOFING NAILS 4" O.C. AT VERTICAL JOINTS AND 7" O.C. AT INTERMEDIATE STUDS AND TOP AND
BOTTOM PLATES. JOINTS OF GYPSUM SHEATHING MAY BE LEFT
UNTREATED. EXTERIOR CLADDING TO BE ATTACHED THROUGH
SHEATHING TO STUDS.

INTERIOR SIDE: ONE LAYER 5/8" TYPE X GYPSUM WALLBOARD,

WATER-RESISTANT GYPSUM BACKING BOARD, OR GYPSUM

VENNER BASE APPLIED PARALLEL OR AT RIGHT ANGLES TO
STUDS WITH 6d COATED NAILS, 1-7/8" LONG, 0.0915" SHANK, 1/4" HEADS, 7" O.C. (LOAD-BEARING)
THICKNESS: VARIES
APPROX. WEIGHT: 7 PSF
FIRE TEST: SEE WP 3510
(UL R3501-47,-48,9-17-65
UL DESIGN U309,
UL R1319-129, 7-22-70,
UL DESIGN U314)

EXTERIOR SIDE

INTERIOR SIDE

SECTION A-A
-12-
219
Legal_Name Facility_Address Facility_Address_2 Facility_City Facility_State Facility_Zip Distance from 1601 Baker St
(Feet)
Distance from 1601 Baker St
(Miles)
NEW DIRECTIONS FOR WOMEN, INC. 2601 WILLO LANE COSTA MESA CA 92627 17,952 ft 3.4 mi SOUTH COAST COUNSELING, INC. 693 PLUMER STREET COSTA MESA CA 92627-2720 13,728 ft 2.6 mi OPUS HEALTH, LLC 925 VICTORIA STREET COSTA MESA CA 92627 11,088 ft 2.1 mi RESURGENCE CALIFORNIA, LLC 3151 AIRWAY AVENUE SUITE K203 COSTA MESA CA 92626 16,368 ft 3.1 mi NANCY CLARK AND ASSOCIATES, INC. 1110 VICTORIA STREET COSTA MESA CA 92627 11,616 ft 2.2 mi BREAKAWAY HEALTH CORPORATION 3151 AIRWAY AVE SUITE D-1/D-2 COSTA MESA CA 92626 16,368 ft 3.1 mi YELLOWSTONE WOMEN'S FIRST STEP HOUSE, INC. 3132 BOSTON WAY COSTA MESA CA 92626 19,008 ft 1.5 mi YELLOWSTONE WOMEN'S FIRST STEP HOUSE, INC. 154 EAST BAY STREET COSTA MESA CA 92627-2147 15,840 ft 3 mi YELLOWSTONE WOMEN'S FIRST STEP HOUSE, INC. 2028 FULLERTON AVENUE UNIT A, B & C COSTA MESA CA 92627 15,840 ft 3 mi YELLOWSTONE WOMEN'S FIRST STEP HOUSE, INC. 590 TRAVERSE DRIVE COSTA MESA CA 92626 15,840 ft 3 mi SAFE HARBOR TREATMENT CENTER FOR WOMEN, INC. 546 BERNARD STREET COSTA MESA CA 92627 14,784 ft 2.8 mi SAFE HARBOR TREATMENT CENTER FOR WOMEN, INC. 240 KNOX STREET COSTA MESA CA 92627 20,592 ft 3.9 mi SAFE HARBOR TREATMENT CENTER FOR WOMEN, INC. 236 KNOX STREET COSTA MESA CA 92627 20,064 ft 3.8 mi MONROE OPERATIONS, LLC 3189 PULLMAN STREET COSTA MESA CA 92626 18,480 ft 3.5 mi ARROWOOD CAPITAL, INC. 1640 SUPERIOR AVE COSTA MESA CA 92627 19,008 ft 3.6 mi DREAM RECOVERY LLC 3188 AIRWAY AVE BLDG J COSTA MESA CA 92626 18,480 ft 3.5 mi DIVINE BLISS 1219 PARNELL PLACE COSTA MESA CA 92626 5,280 ft 1 mi HOTEL CALIFORNIA BY THE SEA, LLC 1509 ORANGE AVENUE A COSTA MESA CA 92627 20,064 ft 3.8 mi THE ALAMO LIVINGOOD CENTER, INC 3151 AIRWAY AVENUE SUITE J-2 COSTA MESA CA 92626 16,368 ft 3.1 mi AKUA BEHAVIORAL HEALTH, INC. 369 RALCAM PLACE COSTA MESA CA 92627 10,560 ft 2 mi PARTNERS PROJECT INC. 1001 W 17TH ST SUITE A COSTA MESA CA 92627 16,992 ft 3.22 mi SOUTH COAST BEHAVIORAL HEALTH 559 PIERPONT DRIVE COSTA MESA CA 92626 15,312 ft 2.9 mi SOUTH COAST BEHAVIORAL HEALTH 3129 PIERCE AVE COSTA MESA CA 92660 6,389 ft 1.21 mi CASA CAPRI LLC 671 GOVERNOR STREET COSTA MESA CA 92627 14,256 ft 2.7 mi COMPASS RECOVERY, INC. 3151 AIRWAY AVENUE F105-B COSTA MESA CA 92626 16,368 ft 3.1 mi KKB HEALTH SOLUTIONS, LLC 2822 MONTEREY AVENUE COSTA MESA CA 92626 7,392 ft 1.4 mi TEAGLE HALL LLC 316 HAMILTON STREET COSTA MESA CA 92627 13,728 ft 2.6 mi TEAGLE HALL LLC 2136 THURIN STREET UNIT B COSTA MESA CA 92627 13,200 ft 2.5 mi TEAGLE HALL LLC 395 VICTORIA STREET COSTA MESA CA 92627 12,144 ft 2.3 mi TEAGLE HALL LLC 2136 THURIN STREET UNIT A COSTA MESA CA 92627 13,200 ft 2.5 mi TEAGLE HALL LLC 2137 DOCTORS CIRCLE UNIT A COSTA MESA CA 92627 13,200 ft 2.5 mi TEAGLE HALL LLC 2137 DOCTORS CIRCLE UNIT B COSTA MESA CA 92627 13,200 ft 2.5 mi RECOVERY SOLUTIONS, LLC 209 E. 18TH STREET COSTA MESA CA 92627 15,312 ft 2.9 mi JJLT HOLDINGS LLC 1799 HUMMINGBIRD DRIVE COSTA MESA CA 92626 7,920 ft 1.5 mi EMBRACE TREATMENT LLC 1912 SUMBA CIRCLE COSTA MESA CA 92626 7,920 ft 1.5 mi ELITE CARE, INC. 930 MAGELLAN STREET COSTA MESA CA 92626 9,082 ft 1.72 mi AKUA BEHAVIORAL HEALTH, INC. 326 UNIVERSITY DRIVE COSTA MESA CA 92627 16,896 ft 3.2 mi AKUA BEHAVIORAL HEALTH, INC. 319- A UNIVERSITY DR. COSTA M ESA CA 92627 16,896 ft 3.2 mi AKUA BEHAVIORAL HEALTH, INC. 319- B UNIVERSITY DR. COSTA M ESA CA 92627 16,896 ft 3.2 mi RISING ROADS RECOVERY SERVICES FOR WOMEN, LLC 3151 AIRWAY AVENUE SUITE I-3 COSTA MESA CA 92626 16,368 ft 3.1 mi SAFE AND SOUND TREATMENT, LLC 3151 AIRWAY AVE L2 COSTA MESA CA 92626 16,368 ft 3.1 mi BEACH CITIES RECOVERY LLC 440 FAIR DRIVE SUITE 237 COSTA MESA CA 92626 7,920 ft 1.5 mi FRESH START RECOVERY SVCS 204 E 17TH STREET SUITE 203 COSTA MESA CA 92627 19,008 ft 3.6 mi Substance Use Disorder Treatment Facilities
ATTACHMENT 3
-13-
220
FOOTPRINTS IN THE SAND 2 RECOVERY LLC 653 W. 19TH STREET COSTA MESA CA 92627 13,200 ft 2.5 mi RENU HEALTHCARE, LLC 1008 W WILSON ST SUITE A COSTA MESA CA 92627 10,032 ft 1.9 mi RENU HEALTHCARE, LLC 1008 W WILSON ST SUITE B COSTA MESA CA 92627 10,032 ft 1.9 mi OASIS TREATMENT CENTERS, LLC 1901 NEWPORT BLVD SUITE 271 COSTA MESA CA 92627 19,008 ft 3.6 mi AMLA FAMILY COUNSELING INC. 2900 BRISTOL ST SUITE 320 COSTA MESA CA 92626 10,560 ft 2 mi CHANGES MH LLC 2787 BRISTOL STREET COSTA MESA CA 92627 10,032 ft 1.9 mi -14-
221
Program Name Street Name City State Zip Project No.

Distance from 1601 Baker St
(Feet)
Distance from 1601 Baker St
(Miles)
Summit Coastal Living 165 E Wilson Street Costa Mesa CA 92627 PA-16-03 15,312 ft 2.9 mi Summit Coastal Living 2041 Tustin Ave Costa Mesa CA 92627 PA-16-04 20,064 ft 3.8 mi South Coast Behavioral Health 506 Traverse Drive Costa Mesa CA 92626 SL-15-0001 16,896 ft 3.2 mi The Ohio House 862 Senate Street Costa Mesa CA 92627 SL-15-0002 14,784 ft 2.8 mi Keystone Sober Living 2152 Raleigh Avenue Costa Mesa CA 92627 SL-15-0014 14,256 ft 2.7 mi Breakaway Health Corp. 492 Broadway Costa Mesa CA 92627 SL-15-0017 21,120 ft 4 mi California Women's Recovery 2735 Cibola Avenue Costa Mesa CA 92626 SL-15-0018 9,504 ft 1.8 mi Agape House 2879 Monterey Costa Mesa CA 92626 SL-15-0031 7,392 ft 1.4 mi Republic House 2064 Republic Avenue Costa Mesa CA 92627 SL-15-0033 17,952 ft 3.4 mi Providence Recovery 582 Pierpont Drive Costa Mesa CA 92626 SL-15-0038 15,312 ft 2.9 mi Northbound Treatment Services 331 16th Place Costa Mesa CA 92627 SL-16-0004 21,120 ft 4 mi South Coast Counseling, Inc. 693 Plumer Street Costa Mesa CA 92627 ZE-81-87 13,728 ft 2.6 mi First Step House / Mcmillen House 2015 Charle Street Costa Mesa CA 92627 PA-91-93 11,616 ft 2.2 mi The Joshua House, National Therapeutic Services 209-211 E 18th Street Costa Mesa CA 92627 PA-87-166 15,312 ft 2.9 mi First Step House 2025 Charle Street Costa Mesa CA 92627 PA-95-14 11,616 ft 2.2 mi Nancy Clark and Associates, Inc. 1110 Victoria Street Costa Mesa CA 92627 PA-97-36 11,616 ft 2.2 mi City Approved Sober Living/Group Homes
ATTACHMENT 4
-15-
222
August 26, 2024
Re: Special Use Permit for Sober Living
To: The City of Costa Mesa

1. i. The residence at 1601 Baker St. Costa Mesa, CA 92626 is owned by George Vilagut, who currently resides at . Phone number California Driver License number
ii. Stephouse Recovery, Inc is a corporation.
a. George Vilagut is the sole owner, there are no partners b. George Vilagut maintains controlling interest in the corporation c. Please see Exhibits A and A-1 for the Board of Directors resolution designating George Vilagut as the permit holder.
iii. Please see Exhibit B for the permit and licenses history for Stephouse Recovery. iv. The House Manager is Zachary Place who currently resides at 1601 Baker Street. His phone number is , California Driver’s License number . Zach passed his background screening with the Orange County Sheriff's Department. All Stephouse employees and volunteers must be screened by the OC Sheriff's Department prior to hire date. He will reside at the Sober Living Residence 7 days a week, 24 hours a day and will be responsible for the daily operations of the home.

Please note that Stephouse Recovery has provided a copy of our Policies and Procedures manual in its entirety. In addition, we have provided EXHIBIT C, which contains only the policies requested for the SUP .
v. Good Neighbor Policy – please see Exhibit C, Stephouse Recovery Policies for SUP, page 1.
vi. Intake Procedure - please see Exhibit C, Stephouse Recovery Policies for SUP, page 2.
vii. Relapse Policy - please see Exhibit C, Stephouse Recovery Policies for SUP, page 2.
viii. Affirmation by Owner – please see Exhibit D
ATTACHMENT 5
-16-
223
ix. Intake Packet -please see Exhibit E. The packet contains all blank forms that residents are required to sign during the intake process x. The application processing fee was paid on June 27, 2024.

2. Stephouse Recovery Inc. is requesting a Special Use Permit (SUP) from the City of Costa Mesa to establish a Sober Living Residence at 1601 Baker St. Costa Mesa, CA 92626. It is proposed that the Sober Living Residence house six (6) recovery residents and one full time house manager. The facility will only be available to approved residents, and never open to the public. Visitors are not permitted at Stephouse Recovery homes. The Executive Director and Compliance Officer for Stephouse provide support and management to the house manager. Stephouse Recovery is contracted with the Orange County Health Care Agency (OCHCA) and is subject to their active oversight and governance. Stephouse Recovery is also inspected and certified annually by the Orange County Sheriff’s Department. Due to a severe shortage of sober living beds, Stephouse Recovery seeks to add the Baker residence to assist OCHCA in meeting the needs of the community. We propose that obtaining this Special Use Permit and opening the Baker residence will have no negative impact on the neighborhood.

Stephouse Recovery successfully operates several sober living facilities in Orange County and maintains positive and harmonious relationships with all neighbors.

3. The Baker property does not have an accessory secondary unit on site. Residents shall live in the only home on the property.

4. The house manager will reside at the residence providing round-the-clock supervision and oversee daily operations. The house manager is also responsible for monitoring residents and ensuring they are safe and adhere to all rules and regulations.

5. The Baker property allows for five (5) vehicles to be parked on site. Two (2) garage spaces and three (3) driveway spaces. Please see the Motor Vehicle Policy, page 2, Exhibit C, for additional information on how Stephouse Recovery meets this requirement.

6. Stephouse does not provide supervised care, counseling, treatment, or recovery planning. Residents must be capable of living independently. Stephouse Recovery’s target population includes adult women and men who are transitioning from substance abuse treatment to mainstream living.

7. The Baker property is not an integral group home facility. This statement is included in the Affirmation by Owner, Exhibit D.

8. Not Applicable – the Sober Living Home operator is also the property owner.

9. Stephouse Recovery is prepared to meet this requirement upon physical inspection by the City of Costa Mesa.

10. Please see Stephouse Recovery’s Discharge/Termination Policy, page 3 of EXHIBIT C. i. Stephouse Recovery Staff will notify a residents emergency contact of termination only in the event of an emergency and/or if the resident has signed a release of information allowing us to share such information. Otherwise, an emergency contact will only be notified in the event of an actual emergency. ii. Because Stephouse Recovery contracts with the OC HCA, we are required to notify the county when a resident is discharged without completion. Each resident is assigned a case manager by the county who facilitates next steps for -17-
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the individual. In most situations of relapse and/or mental health crisis, Stephouse Recovery will transport the individual to College Hospital or Be Well Orange Campus. At times the resident must be transported via ambulance. iii. Due to HIPAA and County Regulations, Stephouse Recovery would not be able to notify any other agency of a resident’s status without a signed release of information. However, Stephouse Recovery does provide housing resources for residents at intake and if necessary, will assist a resident in securing temporary housing at discharge.
iv. Residents are notified of Stephouse Recovery’s Discharge Policy and available resources at intake. An acknowledgement form for their initial and signature is included in the intake packet. Stephouse will include the City form for discharged Baker residents.
v. Stephouse Recovery will ensure that we follow steps i through iv as outlined above if a resident’s behavior or relapse requires immediate termination of residency.

11. Please see Stephouse Recovery’s Discharge Procedures for Staff, page 4, EXHIBIT C, that outlines how Stephouse follows this requirement.

12. Please see Stephouse Recovery’s Records Management and Maintenance Policy, page 5, EXHIBIT C, and Record’s Retention Policy, page 6, EXHIBIT C.

13. Please see Stephouse Recovery’s Transportation Policy, page 7, EXHIBIT C.

14. Additional Regulations:

i. Stephouse Recovery is not aware of any other sober living home, or a state licensed alcoholism or drug abuse recovery or treatment facility located within 650 feet, as measured from the closest property lines.
ii. OC HCA requires that all residents attend an Orange County approved Intensive Outpatient Treatment Program (IOP), and sobriety support meetings (such as Alcoholics Anonymous) while living at the residence. Residents are required to provide a letter of enrollment in IOP within one week of being admitted to Sober Living. Residents are required to turn in a meeting log every Sunday listing all meetings attended for the week and initialed by the facilitator or counselor who ran the meeting. Residents are also asked to sign a release of information so that Stephouse may check in with meeting facilitators and counselors to confirm attendance.
iii. Stephouse Recovery policies and procedures state zero tolerance for drug and alcohol throughout. The Drug/Alcohol Policy, page 7, EXHIBIT C, specifically addresses prohibition of drugs and alcohol use, distribution, and/or possession.

The Drug/Alcohol Policy is posted at every Sober Living Home. iv. Please see Stephouse Recovery’s Denied Admission Policy page 7, EXHIBIT C, stating our procedures for registered sex offenders.
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v. Stephouse Recovery has a strict “no visitors” policy. A “No Visitors Allow” sign is posted at the residence and the house manager enforces this policy. Please see Exhibit C, Stephouse Recovery Policies for SUP , page 8, for the Visitation Policy. vi. Please see Exhibit C, Stephouse Recovery Policies for SUP, page 1, for the Good Neighbor Policy.
vii. Stephouse Recovery Sober Living Homes do not provide individual or group counseling, treatment of any kind, or recovery planning. Residents are referred to outside agencies for these services.

15. House Dimensions and Floor Plan
i. A site plan is not required for this project.
ii. The Baker residence is a 2200 square foot single family residence. Please see EXHIBIT F for:
a. Room layouts and dimensions.
b. Room labels
c. Location of walls, doors, and windows
iii. Please see EXHIBIT G for exterior images of the Baker property.

16. Modifications to the applicant letter:
a. Provide operation characteristics of the facility including proposed number of employees, residents, hours of operation, hours of operation for front door/garage doors being open to the public.

As previously stated, the Baker house will be a Sober Living Residence that houses up to six (6) recovery residents and one full time house manager. There are no hours of operation as at no time will the residence be open to the public.

Support staff for the house manager include the Office Administrator, Executive Director, and Compliance Officer. Stephouse Recovery is contracted with the Orange County Health Care Agency (OCHCA) Residential Recovery Services program and is subject to their active oversight and governance. The County allows participants to stay in sober living for 120 days. At the end of the 120 days, residents are expected to have obtained employment and stable housing. Stephouse Recovery is required to document and report to the County each resident’s progress with these goals at the end of every month. Stephouse conducts weekly drug and alcohol screenings. Drugs screenings are reported to OCHCA at the end of every month.

Depending upon the circumstances of a resident’s relapse, they could be put on a behavior contract, or immediately discharged. The County monitors our outcomes. b. Provide details on the specific services or programs that will be offered to support residents in their recovery.

The Baker house will be an extension of the OCHCA Residential Recovery Services Program. Stephouse does not offer specific services or programs. Rather we provide a safe independent living environment that supports sobriety by promoting a sense of community and accountability. Residents are held accountable to attending regular support meetings, outpatient treatment, and forming a plan for employment, and future stable housing.
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c. Clarify how the facility will handle conflicts or issues between residents to maintain a positive living environment.

The house manager is trained in de-escalation techniques to assist him in mediating conflicts between residents. At orientation, residents are informed they must treat each other with respect and that aggressive behaviors, yelling, and fighting will result in a behavior contract and/or immediate discharge. When residents struggle to get along, a Stephouse Administrator will call a house meeting to discuss issues and facilitate compromise among those in conflict. Facilitating open communication between residents has been very helpful with ensuring harmony in the residence.
d. Identify the training and qualifications of the staff or house managers overseeing the residence.

The house manager is required to have at least one year of sobriety and may not be on parole or probation. The house manager is required to attend several training sessions provided by OCHCA and Stephouse Recovery that must be completed within 30 days of hire, and annually thereafter. Trainings include:
• Annual Provider Training
• Cultural Competency Training
• Crisis Intervention Training (situational awareness & de-escalation techniques)
• Infectious Disease Recognition Training
• CPR certification
• Recognizing physical & psychiatric symptoms (to know when residents need a higher level of care)
• HIPPA, Privacy and Confidentiality Training
• Naloxone Administration Training

e. Describe the procedures in place for ensuring that residents adhere to the facility's rules, especially regarding substance use and participation in recovery programs.

Residents receive random weekly drug and alcohol screening to ensure continued sobriety. Residents are required to turn in a meeting log every Sunday listing all meetings attended for the week. Log entries must be initialed by the facilitator or counselor who ran the meeting. Residents are also asked to sign a release of information so that Stephouse may check in with meeting facilitators and counselors to confirm attendance. At times, the resident will authorize their meeting places to contact Stephouse if they have been absent from their recovery programs.

Because a big part of the OC Residential Recovery Program is to ensure residents are employed, volunteering, or attending school, Stephouse provides a computer, printer and internet access with job hunting and resume writing resources, as well as connections to organizations seeking volunteers. Unemployed residents are required to provide proof that they have applied for work and completed volunteer hours. If they are working, Stephouse will periodically request copies of paystubs. Students must provide confirmation of enrollment, and their school schedule. Stephouse -20-
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Recovery is required to report our employment and housing outcomes to OCHCA monthly.
f. Explain how the sober living home will communicate and engage with the local community and address any concerns or feedback from neighbors.

StepHouse Recovery provides contact information of our managerial staff to the bordering neighbors (located behind, to the left, to the right, as well as across the street of each recovery residence). We provide bordering neighbors with an "Introductory Letter" informing them of our presence in the community and our mission and efforts to help those in recovery make their fresh start in a safe and sober environment. "Introductory Letters" also include the contact information for our County Program Officers so that neighbors may can reach out to them should they feel Management is not addressing their concerns. Should a neighbor contact a house manager with a complaint regarding our home or its occupants, it is the responsibility of the house manager to pass this information to Management immediately, failure to do so will result in a written warning. Management will respond to the complaint within 24 hours to let the concerned neighbor know that the complaint was received and that we are investigating the situation. The complainant will receive a follow up call once an investigation is complete. Please see Stephouse Recovery Good Neighbor Policy and EXHIBIT H -Introductory Letter to Neighbors, for more information.
g. Outline the process for screening and selecting residents to ensure suitability for the sober living environment.

Residents are pre-screened by the OCHCA Gatekeeper prior to referral to a Stephouse Residence. Stephouse Recovery then screens all referrals at time of intake. Criteria to qualify for enrollment includes
• A willingness to continue sobriety
• Abstinence from drugs and alcohol for at least one month prior to admittance • Successful completion of a detox and treatment program. • No one who is under the influence or displaying questionable or dangerous behaviors will be admitted to Stephouse Recovery. OCHCA requires that staff are trained in Recognizing Symptoms Requiring Appropriate Referral.

Should a referral be denied admission, the person will be referred back to the OC HCA Gatekeeper for appropriate placement. Residents must be gainfully employed or enrolled in school as a condition of their residency. Residents must also be capable of living independently.
h. Provide information on how the facility will ensure that residents have access to necessary medical and psychological support services.

Stephouse residents are provided outpatient treatment for mental health and substance abuse through OCHCA. Because they are part of a county program, residents are Medi-Cal eligible. Stephouse ensures that residents understand the Medi-Cal services they are eligible for, that they have their Medi-Cal card and where they can go for medical treatment, and pharmacy needs.
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i. Clarify the measures in place to ensure compliance with the city’s parking and traffic regulations, particularly for visitors and staff vehicles.

Residents are notified of parking and pickup/drop off rules when they intake.

Stephouse has two (2) garage parking spaces, and (3) driveway spaces for the house manager and residents. This will leave a possible need for two (2) vehicles to be parked in front of the residence. However, it is rare for more than two (2) residents to have a vehicle at any given time. Stephouse residents are not allowed to have visitors.
j. Identify the facility’s emergency response plan and procedures for handling situations such as medical emergencies or behavioral issues.

In the event of an emergency, residents and staff are directed to call 911 to dispatch emergency personnel. The house manager will notify the Executive Director of the situation and discuss next steps depending upon the circumstances. Please see the Stephouse Recovery Emergency Response Plan, page 7, EXHIBIT C, for more information. While the house manager is training in crisis intervention/de- escalation, the police will be summoned should a resident’s behavior become over aggressive, or dangerous.
k. Describe how the sober living home will ensure transparent operations and regular reviews for compliance with all applicable regulations and city standards.

Stephouse Recovery has developed and regularly updates strict operating policies for residents and staff. Monitoring curfews, completing regular random drug and alcohol screenings, and nightly bed checks facilitate Stephouse’s attention to compliance with County and City regulations and standards. Stephouse has an open-door policy with law enforcement, county program officers, and code enforcement. Stephouse is subject to annual County chart audits, site visits, contract audits, and inspections by the OC Sheriff’s Department. Every resident can file a complaint or grievance with County Program Officers. These complaints are anonymous and promptly investigated.
l. Describe the facility’s strategy for maintaining a clean and safe environment, including regular inspections and maintenance procedures.

Stephouse is subject to annual County chart audits, site visits, contract audits, and inspections by the OC Sheriff’s Department. We employ a gardening and landscaping company to maintain the yards and plants at each residence. We also employ a full-time maintenance person to address needed repairs, pest control, and other necessary updates to the properties. Stephouse Recovery requires that residents participate in keeping the residence and property clean and safe by assigning weekly household chores.
m. Identify any additional resources or amenities that will be offered to residents to support their daily living and overall well-being, such as job training or life skills workshops.

Stephouse Recovery provides a computer, printer, and WiFi to assist residents in securing employment and searching for stable housing. We do not provide other skill building or workshops because the residents receive this type of support through their weekly IOP provider meetings. Our primary goal is to provide a safe, sober -22-
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SPECIAL USE PERMIT APPLICATION

SUPPORTING DOCUMENTS

TABLE OF CONTENTS
page
EXHIBIT A -Stephouse Recovery Resolution 150 2
EXHIBIT A1- Resolution 150 Certification 3
EXHIBIT B Permit History for Stephouse Recovery (includes permits, licenses) 4 EXHIBIT C Stephouse Recovery Policies for SUP 11
Good Neighbor Policy 11
Intake Policy & Procedure 12
Client Relapse Policy 12
Motor Vehicle Policy 12
Discharge/Termination Policy 13
Discharge Procedures for Staff 14
Records Management & Maintenance 15
Record Retention Policy 16
Transportation Policy 17
Drugs/Alcohol Policy 17
Denied Admission Policy 17
Emergency Response Plan 17
Visitation Policy 18
EXHIBIT D Affirmation of Resident Disability Status & Integral Use 19 EXHIBIT E Facility Intake Packet for Residents Signature 20 EXHIBIT H Introductory Letter to the Neighborhood 59

Please note that EXHIBITS F & G were uploaded to the portal separately.

A copy of the full Policies and Procedures Manual for Stephouse Recovery is available upon request.

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EXHIBIT A
2 -25- 232

EXHIBIT A-1
3 -26- 233

Permit History for Stephouse Recovery
Stephouse Recovery began providing detox, treatment, and recovery services in Fountain Valley in 2011.

Stephouse was licensed by the State of California Department of Health Care Services, with the license set to expire in May of 2023. Stephouse was also accredited through The Joint Commissions.

However, due to operating challenges brought on by the COVID-19 pandemic and a decline in claim reimbursements from insurance companies, Stephouse made the difficult decision to discontinue treatment and detox services. In early 2022, Stephouse notified the State of their decision and relinquished DHCS licenses for all their facilities.

Existing treatment centers
became recovery sober living homes only.

In 2019, Stephouse Recovery was awarded a contract
with Orange County Health Care Agency’s Residential Recovery Services Program.

Under that
contract, Stephouse is required to have a business license from every city in which they operate.

Each residence is also required to be inspected and certified annually by the Orange County Sheriff’s Department.

Stephouse Recovery has been in good standing with the City of Fountain Valley for many years and has current business licenses for two sober living homes in that city.

Fountain Valley recently voted
to require special use permits for Sober Living Homes. Stephouse has complied, and an application was submitted to the city in early June 2024.

The city is currently processing that application.

In
2023, Stephouse opened a Sober Living Home in Huntington Beach and was granted a special use permit.

Stephouse remains in good standing with the City of Huntington Beach.

The following pages of this narrative include current business licenses, permits, and OC Sheriff certifications for your review.

EXHIBIT B
4 -27- 234

TO BE POSTED IN A CONSPICUOUS PLACE AND
NOT TRANSFERABLE OR ASSIGNABLE.

Business Name
Business Location
Business Owner(s)
Business License Number
Effective Date
Description
Expiration Date

CITY OF FOUNTAIN VALLEY

BUSINESS LICENSE CERTIFICATE
17981 Los Tiempos St
Fountain Valley, Ca 92708-6021

ADDICTION TREATMENT
CENTER

GEORGE VILAGUT
THE STEPHOUSE RECOVERY, INC.
17981 LOS TIEMPOS ST
FOUNTAIN VALLEY, CA 92708-6021
For all inquiries regarding this license, contact HdL
Business License Division at (714) 855-3982.
"For Services Provided in the City of Fountain Valley, California Only"

GEORGE VILAGUT
Business Type
THE STEPHOUSE RECOVERY, INC.

Professional &
Semi-Professional
November 01, 2023
October 31, 2024
00017256
THE STEPHOUSE RECOVERY, INC.:

Thank you for your payment on your City of Fountain Valley Business License. ALL CERTIFICATES MUST BE AVAILABLE FOR INSPECTION UPON REQUEST. If you have questions concerning your business license, contact the Business Support Center via email at: [email protected] or by telephone at: (714) 855-3982.

Keep this portion for your license separate in case you need a replacement for any lost, stolen, or destroyed license. A fee may be charged for a replacement or duplicate license.

Starting January 1, 2021, Assembly Bill 1607 requires the prevention of gender-based discrimination of business establishments. A full notice is available in English or other languages by going to: https://www.dca.ca.gov/publications/ City of Fountain Valley

BUSINESS LICENSE CERTIFICATE

BUSINESS LICENSING
8839 N CEDAR AVE #212
FRESNO, CA 93720-1832
Date of Issue: 11/01/2023
00017256License Number: GEORGE VILAGUT
THE STEPHOUSE RECOVERY, INC.
17981 LOS TIEMPOS ST
FOUNTAIN VALLEY, CA 92708-6021
State License Number
State Sellers Permit Number
5 -28- 235
6 -29- 236

TO BE POSTED IN A CONSPICUOUS PLACE AND
NOT TRANSFERABLE OR ASSIGNABLE.

Business Name
Business Location
Business Owner(s)
Business License Number
Effective Date
Description
Expiration Date

CITY OF FOUNTAIN VALLEY

BUSINESS LICENSE CERTIFICATE
9679 Ellis Ave
Fountain Valley, Ca 92708-6628

ADDICTION TREATMENT
CENTER

GEORGE VILAGUT
THE STEPHOUSE RECOVERY, INC.
9679 ELLIS AVE
FOUNTAIN VALLEY, CA 92708-6628
For all inquiries regarding this license, contact HdL
Business License Division at (714) 855-3982.
"For Services Provided in the City of Fountain Valley, California Only"

GEORGE VILLAGUT
Business Type
THE STEPHOUSE RECOVERY, INC.

Service- Personal Care
March 01, 2024
February 28, 2025
00031853
THE STEPHOUSE RECOVERY, INC.:

Keep this portion for your license separate in case you need a replacement for any lost, stolen, or destroyed license. A fee may be charged for a replacement or duplicate license.

BUSINESS LICENSE CERTIFICATE

BUSINESS LICENSING
8839 N CEDAR AVE #212
FRESNO, CA 93720-1832
Date of Issue: 03/01/2024
00031853License Number: GEORGE VILAGUT
THE STEPHOUSE RECOVERY, INC.
9679 ELLIS AVE
FOUNTAIN VALLEY, CA 92708-6628
State License Number
State Sellers Permit Number
7 -30- 237
8 -31- 238

CITY OF HUNTINGTON BEACH

DEPARTMENT OF COMMUNITY DEVELOPMENT

PLANNING ⧫ BUILDING ⧫ PERMIT CENTER ⧫ ECONOMIC DEVELOPMENT ⧫ HOUSING ⧫ CODE ENFORCEMENT

2000 Main Street ⧫ Huntington Beach CA 92648-2702 ⧫ www.huntingtonbeachca.gov

NOTICE OF ACTION
October 24, 2023

George Vilagut
356 5th Street
Huntington Beach, CA 92648
APPLICATION: SPECIAL USE PERMIT NO. SUP-2023-002

FACILITY OWNER/
OPERATOR:

George Vilagut, 356 5th Street, Huntington Beach CA 92648 PROPERTY OWNER: George Vilagut, 356 5th Street, Huntington Beach, CA 92648 REQUEST: To operate a Sober Living Home serving six or fewer residents.

FACILITY LOCATION: 8422 Polder Circle, Huntington Beach, CA 92647 DATE OF ACTION: October 24, 2023
On Tuesday, October 24, 2023, the Community Development Department of the City of Huntington Beach took action on your application and approved your permit. The operation of the subject sober living home is subject to the requirements listed in the Huntington Beach Zoning and Subdivision Ordinance (HBZSO), Section 230.28. This Special Use Permit may not be transferred to any other person or entity. Failure to comply with the requirements listed in Section 230.28 of the HBZSO may result in the revocation of this permit.

If you have any questions regarding this Notice of Action letter or the processing of your application, please contact Madalyn Welch, the city contact, at (714) 374-5353 or via email at [email protected] or the Department of Community Development at (714) 536-5271.

Sincerely,

Ursula Luna-Reynosa
Community Development Director

By:

Madalyn Welch
Associate Planner

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EXHIBIT C
Stephouse Recovery Policies for SUP

GOOD NEIGHBOR POLICY

A top priority for StepHouse Recovery is to ensure that the occupants of our homes are considerate of the neighbors and respectful of the neighborhoods in which they reside. The following protocol should always be followed by clients and staff to ensure that the community and StepHouse Recovery maintain a healthy relationship.

Should a neighbor contact a house manager with a complaint regarding our home or its occupants, it is the responsibility of the house manager to pass this information to Management immediately, failure to do so will result in a written warning. Management will respond to the complaint within 12 hours to let the concerned neighbor know that the complaint was received, and we will investigate and address the issue as the situation warrants.

To maintain a clean presentation of the house and grounds, gardening will take place bi-weekly by a paid landscaping company. Management will also conduct outside maintenance as needed. Clients may not leave personal belongings, bicycles, trash, or other disposed of items at the front of the house.

A monthly checkup by the Director will be made, and the current condition of the home and its grounds will be documented.

Clients are required to abide by the StepHouse Recovery House Rules. Clients are expected to maintain an appropriate noise level and always behave appropriately.

Smoking and vaping are permitted only in designated areas (posted) as outlined in the house rules.

Cigarettes are to be disposed of in an appropriate manner. Clients are expected to maintain a clean environment and never litter. Staff and clients are responsible for setting trash cans out on the curb and bringing them in on the assigned trash day.

Contact Information:

Stephouse Recovery
(888) 923-7623
[email protected]
Orange County Healthcare Agency
Monica Curran
[email protected]
(714) 834-2488
or
Monica Cabral
[email protected]
(714) 834-2027

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INTAKE POLICY AND PROCEDURE

Admission Criteria
Stephouse Recovery must receive an email from the OCHCA gatekeeper. Once a client arrives, we fax the Referral form back to HCA.

Intake means the initial face-to-face meeting between a Client and Stephouse Recovery staff in which specific information about the Client is gathered, including waiver of confidentiality and other required documents signed at the time of the Client's initial intake into the Recovery Residence facility. This is completed to permit disclosure of designated information about the Client to HCA, Treatment Provider, Courts, Orange County Probation Department, (OCPD), Parole Department, Public Defender, and/or District Attorney.

Intake Prescreening Policy, Readmission, Intake and Discharge Criteria Policy and Procedure
It is the policy of Stephouse Recovery to have every client goes through an intake process upon arrival. It is the policy of Stephouse Recovery to maintain consistent Admission, Readmission, and Intake Criteria.
*If a client is deemed to need a higher level of care, Stephouse Recovery will not accept the client into the program and will refer the client back to OCHCA* Procedure
All clients requesting admission are scheduled for an intake session with designated staff. The staff will conduct a face-to-face interview and is responsible for the appropriate assessment collected on the intake form and reviewed by the intake staff.

Criteria to qualify for enrollment includes
▪ A willingness to continue sobriety
▪ Abstinence from drugs and alcohol for at least one month prior to admittance ▪ Successful completion of a detox and treatment program. ▪ No one who is under the influence or displaying questionable or dangerous behaviors will be admitted to Stephouse Recovery. OCHCA requires that staff are trained in Recognizing Symptoms Requiring Appropriate Referral.
▪ Residents must be capable of living independently.

Should a referral be denied admission, the person will be referred back to the OC HCA Gatekeeper for more appropriate placement.

During the intake process, the intake staff will perform the following functions:
▪ Review client rights
▪ Review Stephouse Recovery policies and procedures
▪ Obtain the consent and appropriate release of information

CLIENT RELAPSE POLICY
If a client relapses, staff will complete an incident report and notify the Program Monitor and the client’s Probation Officer. Stephouse Recovery management will decide if the client can stay in the program. If the client does stay in the program, he or she will be placed on a behavioral contract with zero tolerance for any further violation of Stephouse rules. If the client does not stay in the program, he or she will be referred by Stephouse to a different facility/program. Please see the Discharge Policy and Procedure for additional actions for relapsed clients.

MOTOR VEHICLE (INCL. MOTORCYCLE) POLICY

● Clients driving a motor vehicle or motorcycle must possess and provide copies of a current California Driver's License, proof of insurance, and registration. ● Clients are not allowed to ride in the car of another client or allow another client to drive their car. ● All vehicles must be insured and properly registered, and the client must have a valid driver's license.
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● Auto repair on the premises is not permitted without prior management permission. ● Clients are allowed only the vehicle they are currently using, no additional vehicles are permitted.

Vehicles are a privilege that may be revoked at any time due to non-compliance with program rules and expectations.

DISCHARGE/TERMINATION POLICY

Client has completed the program when they have used their maximum allotted time or reached their goals for transition. Staff will complete a Discharge Form to document the circumstances of the client leaving sober living. Clients are not required to sign the discharge form.

Failure to comply with StepHouse policies signed at intake may result in a written warning or administrative termination from the program. Infractions will be documented in the client's record, and a behavioral contract will accompany the written warning. The client's Probation/Parole Officer will be notified of termination when applicable. In addition, there may be circumstances where law enforcement may be called, and legal action taken against the client.

If a client discharges or is terminated from the program and does not collect personal belongings, the items will be held for seven (7) days (excluding food products) and then discarded or donated to charity.

Clients terminated from the program must be sober before they enter StepHouse property.

Each client should receive a housing resource guide upon discharge. Stephouse Recovery will assist discharged clients in securing safe, temporary shelter in the event of immediate discharge. Residents who have relapsed and under the influence may be transported to Be Well Orange Campus or College Hospital Costa Mesa.

Cause for Termination from the Program
● If a client needs a higher level of care than provided at StepHouse Recovery. The client will be referred to OCHCA.
● The client has left the residence and no contact has been made after three (3) days (unless other arrangements have been made)
● Theft of any kind. Theft may also result in legal proceedings. ● Threatening or dangerous behavior.
● Behavior that is not conducive to recovery. Unacceptable behavior includes but is not limited to sexual activity on the premises, fighting, stealing, lying, etc. ● Confrontational behavior, harassment, and being a constant nuisance to other clients or staff. ● Continuous poor behavior and attitude toward staff or other clients. ● Positive results/refusal of urinalysis, breathalyzer, or any other drug test. Refusal to test is equivalent to a POSITIVE test.
● DRUG/ALCOHOL AND/OR PARAPHERNALIA on the premises.
● Taking or possessing prescription drugs that are prescribed to someone else. ● Vandalism or other deliberate abuse of house property. ● Sexual harassment to residents, vendors, staff, or others. ● Violating the no-smoking policy.
● Leaving after curfew without permission.
● Illegal activities of any kind.
● Violence or threats of violence.
● Weapons possession.
● Failure to sign in/out when entering or leaving the residence. This may result in a written client warning or discharge from the program as needed.
● Refusing to allow a search of personal belongings, room, or person. 13 -36- 243
In addition, clients are required to maintain an appropriate noise level. Loud noises of any kind are prohibited; please keep noises to a minimum. The first offense will result in a verbal warning and will be documented in the client's record. Repeated violations may result in discharge from the program.

These causes for termination are not an exhaustive list. Stephouse Management reserves the right to consider all circumstances, behaviors, issues, etc., for appropriate action. All terminations are up to the staff’s discretion.

Once a client is discharged, they are not allowed to return to the facility except to retrieve personal belongings. Arrangements to retrieve belongings should be made in advance with StepHouse Recovery staff.

DISCHARGE PROCEDURES FOR STAFF
Procedure
A client has completed the program when they have used their maximum allotted time or reached their goals for transition. However, when a client leaves Stephouse Recovery for any reason, the staff must fax back the original Client Referral Form to the OCHCA Gatekeeper. The bottom portion of the form must include the discharge date, complete or incomplete, and the reason for leaving.

Clients successfully completing the program should complete and sign an AB109 Discharge Plan form.

Staff should also complete the Stephouse Recovery Discharge Form to assist in reporting information to OCHCA. No signature is required from clients who are terminated before completion.

Failure to comply with Stephouse policies signed at intake may result in a written warning or termination from the program. Infractions will be documented in the client's record, and a behavioral contract will accompany the written warning. If the client is terminated, the OCHA Gatekeeper will be notified immediately via fax, and the OCHA Program Officer will be notified by email. When applicable, the client's Probation Officer and/or emergency contact will also be notified.

Housing Resources shall be provided to clients regardless of completion status. In the case of homelessness, the appropriate city agency will be contacted to determine if services are available for the client. Should transportation to treatment or a shelter be necessary, Stephouse will provide.

In addition, there may be circumstances where law enforcement may be called, and legal action taken against the client.

If a client discharges from the program and does not collect personal belongings, the items will be held for seven (7) days (excluding food products) and then discarded or donated to charity. Clients terminated from the program must be sober before they enter Stephouse property.

Each client should receive a housing resource guide upon discharge.

Cause for Discharge Criteria
• If a client needs a higher level of care.
• The client has not returned, and no contact has been made after three (3) days. • Theft of any kind. Theft may also result in legal proceedings. • Threatening or dangerous behavior.
• Behavior that is not conducive to recovery. Unacceptable behavior includes but is not limited to sexual activity on the premises, fighting, stealing, lying, etc. • Confrontational behavior, harassment, and being a constant nuisance to other clients or staff. • Continuous poor behavior and attitude toward staff or other clients. • Positive results/refusal of urinalysis, breathalyzer, or any other drug test. Refusal to test is equivalent to a POSITIVE test.
• DRUG/ALCOHOL AND/OR PARAPHERNALIA on the premises.
• Taking or possessing prescription drugs that are prescribed to someone else. • Vandalism or other deliberate abuse of house property. • Sexual harassment to residents, vendors, staff, or others. • Violating the no-smoking policy.
• Leaving after curfew without permission.
• Illegal activities of any kind.
14 -37- 244
• Violence or threats of violence.
• Weapons possession.
• Failure to sign in/out when entering or leaving the residence. This may result in a written client warning or discharge from the program as needed.
• Refusing to allow a search of personal belongings, room, or person.

In addition, clients are required to maintain an appropriate noise level. Loud noises of any kind are prohibited; please keep noises to a minimum. The first offense will result in a verbal warning and will be documented in the client's record. Repeated violations may result in discharge from the program.

RECORDS MANAGEMENT AND MAINTENANCE
A. Stephouse Recovery, its officers, agents, employees, and sub-contractors shall, throughout the term of the Contract Agreement, prepare, maintain, and manage records appropriate to the services provided and in accordance with the Agreement and all applicable requirements.

1. Stephouse Recovery shall maintain records that are adequate to substantiate the services for which claims are submitted for reimbursement under the Agreement and the charges thereto. Such records shall include, but not be limited to, individual patient charts and utilization review records.

2. Stephouse Recovery shall keep and maintain records that include referral and intake documents, client identification, insurance information and authorizations to share information. Additional records include client drug screening, and supporting logs as required by OCHCA.

3. Stephouse Recovery shall maintain books, records, documents, accounting procedures and practices, and other evidence sufficient to reflect properly all direct and indirect cost of whatever nature claimed to have been incurred in the performance of the Agreement and in accordance with Medicare principles of reimbursement and GAAP.

4. Stephouse Recovery shall ensure the maintenance of medical records required by §70747 through and including §70751 of the CCR, as they exist now or may hereafter be amended, the medical necessity of the service, and the quality of care provided.

Records shall be maintained in accordance with §51476 of Title 22 of the CCR, as it exists now or may hereafter be amended.

B. Access to client records and information is restricted by job title, individual need to know or need to complete job duties and contract requirements. Non-routine access to client records must be approved by Stephouse Director or Compliance Officer. These include, but are not limited to the following:

1. Research

2. Subpoena

3. Court Orders

4. Mandatory Reporting

5. Accreditation Surveys

6. Law Enforcement

7. Government Agencies
C. Stephouse Recovery shall implement and maintain administrative, technical, and physical safeguards to ensure the privacy of PHI and prevent the intentional or unintentional use or disclosure of PHI in violation of the HIPAA, federal, and state regulations. Stephouse Recovery shall mitigate to the extent practicable, the known harmful effect of any use or 15 -38- 245
disclosure of PHI made in violation of federal or state regulations and/or OCHCA policies.

D. Stephouse Recovery participant, client, and/or patient records shall be maintained securely.

Stephouse Recovery shall maintain participant, client, and/or patient records and has established and implements written record management procedures.

E. Stephouse Recovery shall retain all financial records for a minimum of ten (10) years from the termination of the Agreement unless a longer period is required due to legal proceedings such as litigations and/or settlement of claims.

E. Stephouse Recovery shall retain all client and/or patient medical records for ten (10) years following discharge of the participant, client, and/or patient.

F. Stephouse Recovery shall make records pertaining to the costs of services, participant fees, charges, billings, and revenues available at one (1) location within the limits of the OCHCA of Orange. If Stephouse Recovery is unable to meet the record location criteria above, OCHCA may provide written approval to Stephouse Recovery to maintain records in a single location, identified by Stephouse Recovery.

G. Stephouse Recovery shall notify OCHCA of any PRA requests related to, or arising out of, this Agreement, within forty-eight (48) hours. Stephouse Recovery shall provide OCHCA all information that is requested by the PRA request.

H. Stephouse Recovery shall ensure all HIPAA DRS requirements are met. HIPAA requires that clients, participants and/or patients be provided the right to access or receive a copy of their DRS and/or request an addendum to their records. Title 45 CFR §164.501, defines DRS as a group of records maintained by or for a covered entity that is:

1. Medical and billing records about individuals maintained by or for a covered healthcare provider.

2. The enrollment, payment, claims adjudication, and case or medical management record systems maintained by or for a health plan; or

3. Used, in whole or in part, by or for the covered entity to make decisions about individuals.

I. Stephouse Recovery may retain client, and/or patient documentation electronically in accordance with the terms of this Agreement and common business practices. If documentation is retained electronically, Stephouse Recovery shall, in the event of an audit or site visit:

1. Have documents readily available within twenty-four (24) hour notice of a scheduled audit or site visit.

2. Provide auditor or other authorized individuals access to documents via a computer terminal.

3. Provide the auditor or other authorized individuals with a hardcopy printout of documents, if requested.

J. Stephouse Recovery shall ensure compliance with requirements pertaining to the privacy and security of PII and/or PHI. Stephouse Recovery shall, upon discovery of a Breach of privacy and/or security of PII and/or PHI by Stephouse Recovery, notify federal and/or state authorities as required by law or regulation, and copy OCHCA on such notifications.

K. Stephouse Recovery may be required to pay any costs associated with a Breach of privacy and/or security of PII and/or PHI, including but not limited to the costs of notification. Stephouse Recovery shall pay any and all such costs arising out of a Breach of privacy and/or security of PII and/or PHI.

L. Stephouse Recovery shall make records pertaining to the costs of services, patient fees, charges, billings, and revenues available at one (1) location within the limits of the OCHCA of Orange.

RECORD RETENTION POLICY
Following a discharge, Stephouse Recovery shall retain all participant, client, and patient medical records for ten (10) years, except non-emancipated minors for whom records must be kept for at least one (1) year after such children have reached the age of eighteen (18) years, or for ten (10) years after the last date of service, whichever is longer. This information will also include dates of the client's entry and completion or termination from the facility, including the circumstances of their discharge. 16 -39- 246

TRANSPORTATION POLICY
StepHouse Recovery shall arrange for transportation via bus vouchers, as necessary. StepHouse Recovery will also provide information regarding public transportation, how to obtain a bus pass, bus schedules, etc.

If the client owns and operates a vehicle, StepHouse Recovery shall do its best to accommodate the vehicle in accordance with federal, state, and county rules and regulations. StepHouse Recovery is not responsible for transportation via clients’ cars. Choosing to ride in the car of another client or allow another client to drive your car is strongly discouraged and is done at your own risk. Clients are not permitted to drive or operate StepHouse Recovery vehicles.

Clients can also use the service Veyo for non-emergency medical transportation. This service can be used for doctor’s appointments, meetings, therapy, etc. Call the number 1 -833-648-7528 and mention that you are a client at StepHouse Recovery.

All drivers of vehicles who are picking up or dropping off Stephouse Recovery clients must drive currently registered vehicles and hold a current driver’s license. Drivers may not impede residential traffic or block driveways and must obey all traffic laws.

DRUG/ALCOHOL POLICY

Alcohol, illegal drugs, or non-prescribed drug use, distribution, and/or possession are strictly prohibited.

Cough syrup or mouthwash with alcohol content is prohibited. A client must have total abstinence from any mind/mood-altering chemicals and/or drugs.

No paraphernalia (syringes, papers, pipes, spoons, etc.) associated with drugs on-premises.

No association with any active drug or alcohol offender(s), nor frequent places where drugs are sold, used, or are accessible.

Any infraction may result in the client being put on a standout*, behavioral contract, or discharged. (*Standout- A specified number of days when a client is banned from the house).

DENIED ADMISSION POLICY
If a client is deemed to need a higher level of care, Stephouse Recovery has the discretion not to accept the client into the program and will refer the client back to OCHCA.

A client can be denied admission by Stephouse Recovery for felonious sex crimes, arson, or other violent felonies.

If a client has a positive drug test at admission, Stephouse Recovery has the discretion to not accept the client into the program and will refer the client back to OCHCA.

Stephouse Recovery complies with all State and Local laws and penal codes regarding registered sex offenders. A referral may be denied admission if the offender does not meet the legal requirements.

EMERGENCY RESPONSE PLAN

Call 911 in the event of:

1. Fire

2. Violence or a threat of violence

3. Suspicious persons hanging around premises

4. Burglary

5. A life-threatening medical situation

6. Chest pain
17 -40- 247

7. Shortness of breath

8. Suicide attempt

9. Unconscious individual

10. Injury in which there is a broken bone or bleeding that cannot be stopped

11. Serious fall

12. Unable to wake someone

13. Ingestion of toxic chemicals or substances

14. Suspected overdose of a substance or alcohol

15. Individual out of control

16. Individual hallucinating

17. Individual having an extreme allergic reaction

18. Extreme paranoid behavior

When overdose is suspected - administer Naloxone to the individual in crisis and dial 911.

After a resident calls 911, they should call the house manager/management and inform them of the situation. Make sure you move to a safe place to wait for the arrival of emergency assistance. DO NOT try to move an injured person, give First Aid or CPR unless you are qualified.

Upon intake, the House Manager will ensure that all residents are aware of the emergency exit routes and location of fire extinguishers for the residence. Phone numbers for the House Manager, Stephouse Recovery Management, and OC HCA Program Officers shall be kept current on the bulletin board in the common area of the residence.

VISITATION POLICY

StepHouse Recovery does not allow any visitation/visitors to any of the facilities. Failure to comply will result in discharge from the program and P .O. may be notified.

ANY INFRACTION MAY RESULT IN BEING WRITTEN UP or TERMINATION FROM THE PROGRAM. P .O.

WILL BE NOTIFIED.

18 -41- 248

19 EXHIBIT D
-42-
249
1 Revised August 2024
COUNTY
Name
MRN
DOB
Date

StepHouse Recovery Sober Living - Intake

Name: ____________________________________________ Date: _________________

Telephone: ____________________ DOB: ____________ Social Security: _______________________

Driver’s License #: _________________ Issuing State: ______

Ethnicity:
◻ American Indian or Alaska Native ◻ Asian ◻ Black or African American ◻ Hispanic ◻ Native Hawaiian or Other Pacific Islander ◻ White ◻ Other, please state: _____________________ ◻ Prefer Not to State

Gender:
◻ Female ◻ Male ◻ Transgender ◻ Non-binary/non-conforming ◻ Prefer not to state

Current Address: _____________________________________________________________

Last Address: ________________________________________________________________

Current Email Address: ________________________________________________________

Disabilities: __________________________________________________________________

Chronically Homeless Yes _____ No_____

History of Domestic Violence Yes _____ No_____

20 EXHIBIT E
-43-
250
2 Revised August 2024
Prior Incarceration Yes _____ No_____

Support System in Place Yes _____ No_____

History of Substance Abuse Yes _____ No_____

Mental Health Issues Yes _____ No_____

Have you been convicted of any sex offense in which you had to register as a sex offender under California Penal Code Section 290?
______ Yes ______ No

Have you been convicted of any arson offenses - Violation of Penal Code sections, 451, 451.1, 451.5, 452, 452.1, 453, 454, 455?
______ Yes ______ No

Have you been convicted of any violent felonies, as defined by Penal Code section 667.5, which involves doing bodily harm to another person?
______ Yes ______ No

Are you an active member or currently participating in the criminal activities of a prison gang and or criminal street gang, as defined in Penal Code section 186.22 (f)?

______ Yes ______ No

Client Signature: ________________________________________ Date: _____________

Staff Signature: _________________________________________ Date: _____________

FOR OFFICE USE ONLY

Date of Entrance: ____________ Site/Unit: _____________ Room #: ______

21 -44- 251
3 Revised August 2024

EMERGENCY CONTACT

Emergency Contact: _______________________________

Relationship: ___________________________________________

Phone Number: __________________________________

Email: __________________________________________

22 -45- 252
4 Revised August 2024
Employer/Volunteer/School Information

You must be doing one or more of the activities listed below. Please choose one:
◻ Employed
◻ Part Time
◻ Full Time

Employer: __________________________________ Occupation: _____________________

Address: ___________________________________________________________________

Telephone: _____________________ Supervisor’s Name: ___________________________

Schedule: __________________________________________________________________

◻ Seeking Employment - Every Friday you must submit a weekly report with jobs you applied to & interviewed with.

Date of last employment: __________________________________________ ◻ Attending School
School: ______________________________ Location: ____________________________

Schedule: ___________________________________________________________________

◻ Volunteer Work
Volunteer Organization: ________________________________________________________

Location: ____________________________________________________________________

Grateful Hearts is a local organization where clients may volunteer. Email [email protected] to organize volunteer hours.

Signature: ______________________________ Date: ____________________

23 -46- 253
5 Revised August 2024
Probation Officer Information

Probation Officer/Parole Officer name: _________________________________

Address: _______________________________________________________

Phone: _________________________________________________________

◻ I am not on probation.

Client Signature: ______________________________ Date: _____________

Staff Signature: _______________________________ Date: _____________

24 -47- 254
6 Revised August 2024

CLIENT HEALTH SCREENING

Do you currently have any of the following symptoms? Yes or No

a) Fever/chills/body aches ________
b) Cough ________
c) Shortness of breath ________
d) Temperature check, must be under 100.4 degrees ________

If yes, please offer to reschedule their appointment and provide bridge medications. If the patient indicates that they are in crisis, the sick person should be offered a mask and referred to the on -duty staff. At that point, screening should be kept to a minimum to evaluate for safety. Once deemed safe to leave, they should be sent home and referred to their primary care physician or local walk-in clinic. If shortness of breath is significant, they can be sent to an emergency room, which is the BHS clinic standard already.

Client Signature: __________________________________ Date: _______________

25 -48- 255
7 Revised August 2024
Medical History

✔ DISEASE/CONDITION DURATION COMMENTS
Alcoholism
Asthma
Cancer
Diabetes
Drug Use
Heart Disease
High Blood Pressure
Other:

Other:

Current Physician: ____________________________ Phone: _______________

Allergies: _________________________________________________________

Allergic Reaction(s): ________________________________________________

Tobacco/Nicotine Use: ______________________________________________

If a client needs help obtaining medical care, they should reach out to the administrator of StepHouse Recovery at 714.873.3032. If a client needs immediate medical assistance, they should call 911. 26 -49- 256
8 Revised August 2024

CLIENT DRUG HISTORY

Drug(s) of Choice Amount/Frequency
Alcohol
Amphetamines (Adderall, Concerta, Ritalin, etc.)
Benzodiazepines (Ativan, Klonopin, Valium, Xanax,
etc.)

Cocaine
Codeine
Crack Cocaine
Ecstasy, MDMA, Molly
Fentanyl
Heroin
Hallucinogens (DMT, LSD, Mushrooms, Peyote,
etc.)

Inhalants
Marijuana/THC
Methamphetamines
Opioid Prescriptions (Oxycontin, Percocet, Vicodin,
etc.)

PCP
Other:

Client Signature: _______________________________ Date: ____________________

27 -50- 257
9 Revised August 2024

PRESCRIPTION MEDICATIONS

By signing below, I have read, understand, and will comply with the following policies regarding prescription medications. Failure to comply may result in a write-up, blackout, or discharge within the staff’s discretion. Failure to comply will result in the client’s P.O. being notified.

● All prescriptions and over-the-counter medications being taken must be disclosed to management upon admission.
● No legal or illegal narcotics are allowed to be brought into StepHouse Recovery Upon admission. ● Over-the-counter medications must be approved and documented by staff. ● If a client is prescribed non -narcotic psychotropic medications, the client must continue taking them as prescribed by their psychiatrist or physician to stay in the facility. ● If a prescription is renewed or discontinued, it must be reported to staff and documented in the client’s file.
● Taking or possessing prescription drugs that are prescribed to someone else is strictly prohibited. ● Abuse of medication can be considered a relapse and the client will be transferred to detox or discharged. ● In emergency situations (i.e., surgery, car accident, etc.), controlled and/or narcotic medication may be necessary and may be allowed on a case-by-case basis.

Client Signature: _______________________________ Date: ____________________

28 -51- 258
10 Revised August 2024
PRESCRIPTION MEDICATIONS CONT.

Please list any prescribed medications that you are currently taking and provide staff with pictures of your medications for your file:

1. ____________________________________________________________

2. ____________________________________________________________

3. ____________________________________________________________

4. ____________________________________________________________

5. ____________________________________________________________

6. ____________________________________________________________

Doctor Information:

Name
Address
Phone

Notes/Other Info:

Client Signature: ___________________________________ Date: ____________________ 29 -52- 259
11 Revised August 2024

STEPHOUSE RECOVERY ADMISSION AGREEMENT

Applicant’s Name: ________________________ Enrollment Date: __________

To be considered for admission, prospective clients shall possess the following: a desire to stay sober, the ability to get along with others, agree to abide by all Policies and Procedures, and a willingness to work their program.

StepHouse Recovery will not discriminate based on ethnic group identification, religion, age, sex, sexual preference, race, or disability pursuant to the Title IV of the Civil Rights Act of 1964 (Section 20000d, Title 42, United States Code); Section 11135 of California Government Code; and for recipients of financial assistance of the Rehabilitation Act of 1973 (Section 794. Title 29, United States Code); and Chapter 6 (Commencing with Section 10800) Division 4, Title 9 of the California Code of Regulations in accordance with all state and federal laws and regulations. Stephouse will provide assurance of provision and recognition of personal rights and the right to confidentiality as provided for in Title 42, Section 2.1 through 2.67 -1, Code of Federal Reg ulations, effective August 1, 1975.

If a client is deemed to need a higher level of care, StepHouse Recovery will deny entry of the client into any sober living facility and will suggest admission to a residential detox facility.

StepHouse Recovery offers a healthy, independent, and shared living environment free from alcohol and drugs.

We provide safe and supportive residential homes that encourage continued recovery from substance abuse and addiction. Food, bed linens, and cleaning supplies are also provided.

Clients will be directed to an independent physician if they require medical services. Using any medical services/physician is at the client's sole discretion, and the client is responsible for paying the physician directly for any medical and pharmaceutical costs.

Stephouse Recovery will also provide clients with employment and housing resource information.

30 -53- 260
12 Revised August 2024
STEPHOUSE RECOVERY’S POLICIES AND PROCEDURES
PLEASE INITIAL AFTER READING EACH SECTION:

AUTHORITY POLICY

StepHouse Recovery shall recognize the authority of the Orange County Probation Department (OCPD) as officers of the court and shall extend cooperation to OCPD within the constraints of state and federal laws and regulations.

StepHouse Recovery shall operate in accordance with Local, State, and Federal laws and regulations.

StepHouse Recovery has an open -door policy with law enforcement, probation/parole, and court services programs. All clients agree to be respectful to all.

(______)
Initial

CLEANING POLICY

Be considerate to others. Practice good hygiene by showering regularly, washing clothes and bedding regularly, and keeping personal living areas clean and orderly.

Clean up after yourself; especially after using the shared common areas (bathroom, living room, patio, yards, garage areas, kitchen, fridges, etc.). All common areas in housing are to be shared and treated with respect and cleanliness.

Cleaning supplies are provided to the facilities. Mandatory cleaning days will be scheduled by staff biweekly on Sundays.

(______)
Initial

CLIENT CONFIDENTIALITY POLICY

I shall respect and maintain the confidentiality of all discussions between staff and other clients in connection with group meetings where clients share personal information.

I understand that I am legally prohibited from posting or sharing pictures, videos, or information about other clients, discussions, or activities online in any format (including, but not limited to email, websites, message boards, blogs, and social networking platforms).

I understand that these are the conditions of my admission to StepHouse Recovery. Any breach of the Client Confidentiality Agreement may result in immediate discharge from StepHouse Recovery.

31 -54- 261
13 Revised August 2024
I further understand that my personal file may be audited by StepHouse Recovery’s authorized personnel for the purpose of monitoring quality, performance, and compliance. All information will be kept confidential and in accordance with the Federal Confidentiality Regulations.

(______)
Initial

CLIENT SIGN-IN/OUT POLICY – CLIENT SCHEDULES

All clients must sign in/out when entering or leaving the residence. Failure to do so will result in a write -up, blackout, or discharge from the program as needed.

StepHouse Recovery shall provide logs for all clients that will include the following information:

✔ Client name and signature when leaving and signature again when returning ✔ Date and time leaving the Recovery Residence facility ✔ Estimated time of return to the facility
✔ Location and telephone number where the client may be reached.

StepHouse Recovery shall also receive a schedule from the client for treatment, work, school, or other activities. The client shall be required to notify StepHouse Recovery staff of any change to their schedule. The schedule is maintained on a calendar monitored by staff at each home.

(______)
Initial

OUTPATIENT PARTICIPATION POLICY

Clients who are required to participate in either an Orange County approved outpatient treatment program and/or a Day Reporting Center (DRC) must comply or be discharged. Exceptions to the mandatory participation must be approved by the county of Orange and provided to Stephouse Recovery in writing.

OCHCA requires that all clients attend outpatient meetings ((SMART recovery, 12-Step program, etc.). Staff will collect client meeting logs weekly on Sunday evenings. If the client is unavailable on Sunday evening, they must arrange for staff to receive the logs before Sunday evening. Clients are required to complete meeting logs as proof of attendance, which must be signed by the client’s meeting counselor or group leader.

Periodically StepHouse Recovery will contact the program where the client attends meetings, requesting attendance verification. Therefore, at the time of intake, StepHouse Recovery requires a signed release of patient information form permitting the outpatient meeting agency to share information with Stephouse.

(______)
Initial

32 -55- 262
14 Revised August 2024

CURFEW/OVERNIGHT POLICY

Clients must be back by curfew:

Weekdays- 10:00 PM.

Weekends and Holidays- 12:00 AM.

All clients must follow curfews unless other arrangements have been made in advance with management (i.e., overnight pass, working past curfew, etc.).

Clients must be with StepHouse Recovery for a minimum of 30 days and have no behavioral issues to qualify for an overnight pass. Approval must be requested in writing to the StepHouse office at least 48 hours in advance and is up to the staff’s discretion. Clients may obtain overnight passes for a maximum of two (2) weekends or four (4) nights per month.

Leaving the house after curfew hours may be grounds for termination from the program. Curfew violators will be placed on a behavioral contract and required to pass a drug test prior to returning to housing.

The client agrees that they are subject to discharge if they leave StepHouse Recovery overnight without a pass.

(______)
Initial

DISCHARGE/TERMINATION POLICY

Cause for Termination from the Program
● If a client needs a higher level of care than provided at StepHouse Recovery. The client will be referred to OCHCA.
33 -56- 263
15 Revised August 2024
● The client has left the residence and no contact has been made after three (3) days (unless other arrangements have been made)
● Theft of any kind. Theft may also result in legal proceedings. ● Threatening or dangerous behavior.
● Behavior that is not conducive to recovery. Unacceptable behavior includes but is not limited to sexual activity on the premises, fighting, stealing, lying, etc. ● Confrontational behavior, harassment, and being a constant nuisance to other clients or staff. ● Continuous poor behavior and attitude toward staff or other clients. ● Positive results/refusal of urinalysis, breathalyzer, or any other drug test. Refusal to test is equivalent to a POSITIVE test.
● DRUG/ALCOHOL AND/OR PARAPHERNALIA on the premises.
● Taking or possessing prescription drugs that are prescribed to someone else. ● Vandalism or other deliberate abuse of house property. ● Sexual harassment to residents, vendors, staff, or others. ● Violating the no-smoking policy.
● Leaving after curfew without permission.
● Illegal activities of any kind.
● Violence or threats of violence.
● Weapons possession.
● Failure to sign in/out when entering or leaving the residence. This may result in a written client warning or discharge from the program as needed.
● Refusing to allow a search of personal belongings, room, or person.

Once a client is discharged, they are not allowed to return to the facility except to retrieve personal belongings.

Arrangements to retrieve belongings should be made in advance with StepHouse Recovery staff.

(______)
Initial

DISCRETION POLICY

The client understands that they are entering independent sober living. Privacy is limited and space is shared.

Stephouse Recovery staff will conduct bed checks and will be entering bedrooms regularly. StepHouse Recovery staff reserves the right to interpret and apply the rules to meet the needs of each client effectively and within reason. Staff will use their best judgment with events and circumstances as they occur. Stephouse Management reserves the right to change or make additions to StepHouse Recovery Policies and Procedures at any time. It is within StepHouse Recovery’s discretion to make amendments or modifications to any of the following:

34 -57- 264
16 Revised August 2024
● Rules and Regulations
● Policies
● Room Assignments
● Food Requirements
● Schedules
● Supervision
● Chore Assignments
● Testing
● Discharge
Clients who violate any StepHouse Recovery Policies or Procedures agree to the decisions and consequences deemed necessary by the staff.

(______)
Initial

DRUG/ALCOHOL POLICY

Alcohol, illegal drugs, or non-prescribed drug use, distribution, and/or possession are strictly prohibited. Cough syrup or mouthwash with alcohol content is prohibited. A client must have total abstinence from any mind/mood- altering chemicals and/or drugs.

No paraphernalia (syringes, papers, pipes, spoons, etc.) associated with drugs on-premises.

No association with any active drug or alcohol offender(s), nor frequent places where drugs are sold, used, or are accessible.

Any infraction may result in the client being put on a standout*, behavioral contract, or discharged. (*Standout- A specified number of days when a client is banned from the house).

(______)
Initial

SUPPORT STAFF

Staff is responsible for the supervision of all clients residing in the facility. Staff shall be responsible for ensuring the safety of the buildings and grounds and maintaining compliance of clients and staff with facility rules. Whenever StepHouse Recovery Staff is not present at the facility, a designated facility staff person shall be on-call to respond and arrive at the facility.

StepHouse Recovery shall post the contact telephone number of designated on-call staff.

The staff will randomly be on sight at the facility to perform UAs/breathalyzers and conduct random searches of the client rooms, personal property, and belongings.

(______)
Initial
35 -58- 265
17 Revised August 2024

EMPLOYMENT/SCHOOL/VOLUNTEERING POLICY

StepHouse Recovery requires all clients to be employed, seeking employment, attending school or volunteering during the duration of their program. Verification of employment, interviews, applications, or volunteer hours is required weekly. Proof of school enrollment is also required. Failure to comply with this policy can result in discharge from the program.

(______)
Initial

GOOD NEIGHBOR POLICY

Clients are required to abide by the StepHouse Recovery House Rules. Clients are expected to maintain an appropriate noise level and always behave appropriately.

Smoking and vaping are permitted only in designated areas (posted) as outlined in the house rules.

Stephouse Recovery
(888) 923-7623
[email protected]

Orange County Healthcare Agency
Monica Curran
[email protected]
(714) 834-2488
or
Monica Cabral
[email protected]
(714) 834-2027
36 -59- 266
18 Revised August 2024

HOUSE RULES POLICY

Facility
● Accept the facility “as is”.
● The client understands they reside in a congregate housing situation, not an exclusive unit or space. ● Become familiarized with escape routes, safe gathering locations, and the need for a safe location headcount.
● It is encouraged for clients not to bring anything of high value to the facility or to keep it on their person otherwise. StepHouse Recovery is not responsible for lost, stolen, or damaged property. Clients bringing items of monetary or sentimental value to the facility are doing so at their own risk. ● No personal refrigerators, microwaves, coffee pots, heaters, furniture, candles, or excessive property is allowed.
● Moving rooms:
○ Clients may request to move rooms but are only allowed to move with permission of staff ■ Decisions will be based on seniority, behavioral assessment, and availability ○ Client must clean room previously occupied before moving. ○ Staff may need to move clients based on necessity. Changing a client’s room assignment is at the staff discretion.
● House meetings are scheduled by management on a need -be basis. If the client is unable to attend because of work conflicts, a manager must be notified.
● Laundry detergent/supplies and toiletries are not provided for client use. ● Internet Wi-Fi is provided at each location.

Client Conduct
● No drugs, alcohol, and/or paraphernalia allow on house premises. ● All medications, including over the counter, must be held and dispensed by the clients themselves. ● Do not enter other clients’ rooms. Clients may only enter their own room and are not allowed to enter another client's bedroom.
● Clients are not allowed to fraternize with other clients. ● Do not share rental agreement information with other clients. ● All overnight passes must be requested for approval by Thursday of each week. ● Client agrees that if they leave StepHouse Recovery for an overnight without a "pass" they are subject to discharge. Personal belongings will only be held for seven (7) days (excluding food products) and then discarded or donated to charity.
● NO PETS- Pets of any kind are not permitted.
● Clients are expected to rise in the morning at a reasonable time to ensure they are dressed, bed made, immediate area cleaned, and house chores completed by 11 am daily. ● Assigned chores must be completed daily.
● Before leaving the house, chores must be completed, the bed must be made, and the room must be tidy. If clients have school/work/volunteering before the "11 am Chore Check", they must complete all household responsibilities before leaving.
● All clients must wear appropriate attire when in shared areas of the facility and/or in the presence of other residents and staff. Appropriate attire includes shirts and pants/shorts, and dresses. ● CURFEW, clients must be in the house by 10 PM on weekdays and 11 PM on weekends and holidays. ● Be considerate to others. Keep music and television audio so as not to disturb other clients. Pick up after yourself, leaving microwaves, common areas, and bathrooms clean for the next person. 37 -60- 267
19 Revised August 2024
● Shower daily, maintain personal hygiene, and wash your clothes regularly. ● Bedding must be washed weekly.
● NO SMOKING/VAPING inside of or in front of the house. SMOKING/VAPING is only permitted in designated areas.
● DO NOT LEAVE BURNING CIGARETTES UNATTENDED.
● Empty ashtrays as needed.
● Clients agree not to have any contact with ex-clients that have been discharged due to relapse or behavioral infractions.
● NO STEALING! Respect others' property. Theft is cause for immediate discharge and may result in legal proceedings.
● DO NOT TOUCH THE MAIL. The operations coordinator is the only person allowed to bring the mail in from the mailbox.
● All clients must attend at least five 12-Step meetings and scheduled house solutions meetings. ● Threatening or dangerous behavior and/or deliberate abuse of house property will be cause for immediate discharge and may result in legal proceedings. ● Sexual harassment is strictly prohibited and will result in automatic discharge from the program. The client’s Parole/Probation Officer and law enforcement will be notified. ● Clients must notify staff of any communicable disease. ● If you see something, say something. The purpose of sober living is to provide a supportive environment free from alcohol and drugs. Clients play a vital role in keeping each other safe and sober.

Staff should be informed of threatening or dangerous behaviors of others, drug or alcohol use, housemates’ lack of participation in house chores, etc. ● In the event of an emergency dial 911. Staff should also immediately be notified.

Daily Structured Activities
Clients are required to engage in daily activities that should be discussed with their outpatient provider.

Clients will be assigned household duties, including but not limited to house cleaning and basic household operations. Assigned duties must be completed daily.

The client agrees to work on a program of recovery to better their lives in the form of their choosing. StepHouse Recovery highly recommends attending celebrate recovery, parenting classes, life skill classes, private counseling, and many other community-based organizations to better themselves.

The client agrees and understands that a condition for being at StepHouse Recovery is to be gainfully employed, actively seeking work, in treatment, attending school, or other activities to enhance the client’s future. Staff will provide resources, assistance, and support for clients to find work, register for school, attend appropriate self - help program meetings, and volunteer in the community.
(______)
Initial

MAIL AND PACKAGE DELIVERY POLICY

StepHouse Recovery and staff are not responsible nor liable for mail or packages that clients choose to have delivered to a recovery residence. Do not open any packages not addressed to you.

(______)
Initial
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MEALS/FOOD POLICY

StepHouse Recovery will provide food during the week. It is the client’s decision on whether they wish to consume the food provided.

Clients are not allowed to keep any food in their rooms. All food must be kept in the kitchen or designated pantry space. Only water bottles are allowed in clients’ rooms.

Clients are required to clean up after themselves. Personal items, laundry, towels, and the like should not be left in the common areas of the house. Do not leave dishes in the sink or any other areas of the house, including rooms. Clean and stow dishes, utensils, and cookware in their allocated spaces. Clean the counters and stove after use. Clean the microwave as needed, especially if you spill something.

Food logs must be filled out on Sunday for the week prior.

(______)
Initial
MOTOR VEHICLE (INCL. MOTORCYCLE) POLICY

All vehicles must be insured and properly registered, and the client must have a valid driver's license. ● Auto repair on the premises is not permitted without prior management permission. *Vehicles are a privilege that may be revoked at any time due to non-compliance with program rules and expectations. *

(______)
Initial

NONDISCRIMINATION POLICY

StepHouse Recovery does not to discriminate on the basis of race, color, national origin, religion, sex, or mental or physical disabilities, pursuant to Title VI of the Civil Rights Act of 1964 (Section 2000d, Title 42, United States Code), the Rehabilitation Act of 1973 (Section 794, Title 29, United States Code); the Americans with Disabilities Act of 1990 (Section 12132, Title 42, United States Code); Section 11135 of the California Government Code; and Chapter 6 (commencing with Section 10800), Division 4, Title 9 of the California Code of Regulations.

Any person who believes they or someone else has been subjected to discrimination based on race, national origin, sex, age, or disability may file a grievance under the following procedure. It is against the law for StepHouse Recovery to retaliate against anyone who opposes discrimination, files a grievance, or participates in the investigation of a grievance. This policy applies to employees, contractors, vendors, clients, and all who interact with Stephouse Recovery.

(______)
Initial
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OPIOID OVERDOSE EMERGENCY TREATMENT POLICY

StepHouse Recovery shall have available at each program site, at minimum, one Naloxone (Narcan) Nasal Spray for the treatment of known or suspected opioid overdose.

In case of suspected opioid overdose, staff may administer Naloxone (Narcan) Nasal Spray and then call 911.

Clients will also be shown how to administer Naloxone.

**Note: Naloxone is the generic name of Narcan. Narcan is the brand name of Naloxone.

(______)
Initial

PROPERTY DAMAGE POLICY

The client agrees not to damage the facility, which includes the outside perimeter.

Client agrees not to damage any property belonging to StepHouse Recovery which includes but is not limited to transport vehicles, appliances, and furniture.

The client agrees to return any items to the facility before discharge, including linens, blankets, and towels.

The client agrees if there is damage that cannot reasonably be traced back to a particular person, the cost of the damage will be shared equally among all the housemates.

The client agrees to be financially responsible for all damage caused by them in any of the StepHouse Recovery facilities and transport vehicles.

(______)
Initial

DRUG & ALCOHOL SCREENING POLICY
Alcohol, illegal drug, or non-prescribed drug use or possession by clients or staff is strictly prohibited.

Cough syrup with alcohol content is prohibited for client safety and sobriety.

ALL CLIENTS MAY BE SUBJECT TO RANDOM DRUG SCREENS, BREATHALYZER TESTS AND ROOM SEARCHES.
● StepHouse shall perform random drug and/or alcohol testing on clients suspected of using substances AND at a minimum of one (1) time per month.
● All urine specimen collection shall be observed by same-sex staff. The result of the screening will be documented in the client's record.
● Clients are not allowed to open tests by themselves. Staff will open the tests and then give them to clients.
● If a test is unclear or possible contamination is suspected, the client will have to re-test within 1.5 hours after the first test was administered.
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If a client refuses a search or test or drugs or alcohol are found or detected, StepHouse Recovery will notify the client's probation officer (within one business day), and discharge from the program may result. Refusal to test is equivalent to a POSITIVE test. ** REMINDER**

UNDER NO CIRCUMSTANCES SHALL A CLIENT WHO IS UNDER THE INFLUENCE BE ALLOWED IN THE HOUSE.

If a client is found to be under the influence, management shall pack the client's property for retrieval at a later time. When the client is no longer under the influence, he can arrange to retrieve personal property with staff.

The client’s property will be held for seven (7) days before StepHouse Recovery donates the items to charity.

(______)
Initial

SMOKING POLICY
Smoking, (including electronic cigarettes) is prohibited within the facilities; the use of tobacco and tobacco products on facility premises is allowed in the backyard or parking lot.

1. Smoking and/or vaping is prohibited in any enclosed area of StepHouse Recovery's facilities.

2. Cigarettes must be completely extinguished in receptacles or metal containers to reduce fire risk.

3. Any client violating the no-smoking policy may be discharged from the program.

4. A self-audit of the no-smoking policy will be implemented, and any violation should be reported by staff in an incident report. A monthly Health and Safety audit will be conducted to see if the no- smoking policy is being adhered to.
-NO SMOKING/VAPING INSIDE OF OR IN FRONT OF THE HOUSE. SMOKING/VAPING is only permitted in designated areas.
-DO NOT LEAVE BURNING CIGARETTES UNATTENDED.

(______)
Initial

TRANSGENDER & GENDER IDENTITY POLICY

StepHouse Recovery will not discriminate against ethnic group identification, religion, age, gender identification, sexual preferences, race, or disability. StepHouse Recovery will make every effort to ensure that all needs of transgender and non-cisgender persons are accommodated. We are committed to our clients feeling safe, supported, and comfortable.

StepHouse Recovery is committed to maintaining client information in strict confidence. No client information is ever shared with other clients, including gender orientation. 41 -64- 271
23 Revised August 2024
Transgender and non-cisgender clients are subject to the same drug/alcohol screening policy. A staff of the same gender the client has identified with will be in the room to observe urine specimen collection.

(______)
Initial

GENDER-ORIENTED FACILITY POLICY

StepHouse Recovery will accommodate clients according to their gender identity. Those clients identifying as male, and female will be housed in separate residences accordingly. (______)
Initial

Clients can also use the service Veyo for non -emergency medical transportation. This service can be used for doctor’s appointments, meetings, therapy, etc. Call the number 1 -833-648-7528 and mention that you are a client at StepHouse Recovery.

(______)
Initial

VISITATION POLICY

StepHouse Recovery does not allow any visitation/visitors in any of the facilities. Failure to comply will result in discharge from the program and P.O. may be notified.

ANY INFRACTION MAY RESULT IN BEING WRITTEN UP or TERMINATION FROM THE PROGRAM. P.O.

WILL BE NOTIFIED.

(______)
Initial
42 -65- 272
24 Revised August 2024

NO RESPONSIBILITY CLAUSE

Stephouse Recovery assumes no responsibility for the client’s personal property. Stephouse is released from all liability for any loss or damage to any and all personal property. Personal property includes but is not limited to vehicles, valuables, money, jewelry, eyeglasses, hearing aids, documents, electronic devices (i.e., computers, game consoles, and tablets), and mobile devices. Clients are advised to minimize the personal property brought into residential recovery homes. All items brought to a Ste phouse Recovery home are done at the client’s own risk. Locks are not permitted on bedroom doors, and there are no exceptions to this rule.

The client agrees to hold harmless The StepHouse Recovery, Inc, the property owners, and any and all Service Providers/Contractors against any and all claims, demands, suits, or loss.

(______)
Initial

By signing below, you confirm that you have read and agree to all terms in this StepHouse Recovery Admission Agreement.

Client Name: _____________________________________ Date: ____________ Client Signature: __________________________________________________ Staff Name: _____________________________________ Date: ____________ Staff Signature: ____________________________________________________ 43 -66- 273
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44 -67- 274
26 Revised August 2024
I acknowledge that I have read and understand the procedures for administering NARCAN. A copy of this information will be provided for you to keep in the welcome packet.

Client Name: ______________________________________________

Client Signature: ___________________________________________

Date: ______________________

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(AB 109) SOBER LIVING- Client Sobriety and Treatment History

I have been sober since: ____________________________________________

I have been at the following treatment programs and/or sober living facilities:
________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________

I am currently participating in the outpatient treatment program/or Probation DRC (Probation Reporting Center) at: ______________________________________

(TO BE FILLED OUT BY STAFF)

Notations regarding how Sober Living may assist the client in implementing his/her sobriety - related plan recommendations:

__________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ _________________________________________________

Client Signature: _______________________________ Date: _______________

Staff Signature: _______________________________ Date: _______________

46 -69- 276
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HIPAA COMPLIANT AUTHORIZATION

FOR THE RELEASE OF PATIENT INFORMATION
to HCA and Orange County Probation
Client Last Name: Client First Name:

Date of Birth: SSN (last 4 digits)
Email: Phone Number:

Address: City:

State: Zip:

I ____________________________________________________________ do hereby authorize Client Name
_______________Stephouse Recovery, Inc. ______________________________________________ Name of Agency/Provider
___9679 Ellis Ave., Fountain Valley, CA 92708_______________(714) 394-3494______________________ Address Phone Number

to release my protected health information to Orange County Health Care Agency 405 W 5th Street, Santa Ana CA 92701
(855) 886-54000
And Orange County Probation Department
Purpose of this authorization:
◻ Patient Request
■ Continuity of Care/Treatment
◻ Insurance
■ Requested by Legal Authority
◻ Other: ________________________________________________________

Information that can be released (check all that apply):
■ Medical Records
47 -70- 277
29 Revised August 2024
■ Summary of Treatment
■ Outpatient Meeting Attendance Records
◻ Other, please specify:
________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________

Types of records to be released:
■ Complete Records retained by Stephouse Recovery (including, but not limited to office notes, face sheets, history, physical, consultations, inpatient, outpatient, and emergency room treatment, test results, progress notes, social worker records, clinic records, and the like). Alcohol, Drug and/or Substance Abuse Records and Mental Health Records are excluded from this section. See below to authorize release of Alcohol, Drug and/or Substance Abuse Records and Mental Health Records. ◻ Other, please specify:
__________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________

Client initials and date range of records to be released are required below for the use or release of the following types of sensitive information:

Please initial on the line provided. Dates are required, “date from” will be date of admission.

___ Alcohol, Drug or Substance Abuse Records Date from: __________ Date To: __________ ___ Mental Health Records Date from: __________ Date To: __________

I understand that my records are protected under the Federal regulations governing Confidentiality of Alcohol and Drug Abuse Patient Records, 42 C.F.R. Part 2, and the Health Insurance Portability and Accountability Act of 1996 (HIPAA), 45 C.F.R. Pts. 160 & 164, and cannot be disclosed without my written consent unless otherwise provided for by the regulations.

I have read the contents of this form. I understand, agree, and allow the above-named Agency/Provider to release my information as I have stated above. I also understand that signing this form is voluntary and treatment, payment, or eligibility for benefits will not be affected if I do not sign this authorization. I have the right to revoke this authorization at any time by providing written notice to Stephouse Recovery at 9679 Ellis 48 -71- 278
30 Revised August 2024
Ave. Fountain Valley, CA 92708. The revocation will not affect disclosures that Stephouse Recovery has already taken action in reliance on the authorization. Information disclosed pursuant to this authorization may be re-disclosed by the recipient and no longer be protected by federal privacy law (HIPAA). Applicable State or other federal law may require the recipient to obtain your written authorization before re-disclosure unless otherwise permitted by such laws. I am entitled to a copy of this form. A copy of the original authorization is valid. This authorization expires three years from the date of my discharge from Stephouse Recovery.

Anticipated Date of Discharge: ___________________

Client Signature: _______________________________ Date: _______________

Completed by Stephouse Recovery Staff:

Printed Name: ___________________________________
Signature: ______________________________________ Date: ______________________

49 -72- 279
31 Revised August 2024

HIPAA COMPLIANT AUTHORIZATION

FOR THE RELEASE OF PATIENT INFORMATION
Outpatient Meeting Provider

Client Last Name: Client First Name:

Date of Birth: SSN (last 4 digits)
Email: Phone Number:

Address: City:

State: Zip:

I ____________________________________________________________ do hereby authorize Client Name
__________________________________ ___________________________________________________ Name of Agency/Provider
_______________________________________________________________________________________ Address Phone Number to release my protected health information to

to release my protected health information to Stephouse Recovery 9679 Ellis Ave. Fountain Valley CA
(714) 394-3494

Purpose of this authorization:
◻ Patient Request
◻ Continuity of Care/Treatment
◻ Insurance
◻ Requested by Legal Authority
■ Other: __Proof of meeting attendance __________________________________________ 50 -73- 280
32 Revised August 2024
Information that can be released (check all that apply):
◻ Medical Records
◻ Summary of Treatment
■ Outpatient Meeting Attendance Records
◻ Other, please specify:
________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________

Types of records to be released:
◻ Complete Records retained by Stephouse Recovery (including, but not limited to office notes, face sheets, history, physical, consultations, inpatient, outpatient, and emergency room treatment, test results, progress notes, social worker records, clinic records, and the like). Alcohol, Drug and/or Substance Abuse Records and Mental Health Records are excluded from this section. See below to authorize release of Alcohol, Drug and/or Substance Abuse Records and Mental Health Records. ■ Other, please specify: _______Meeting Attendance Only___________________________________

Client initials and date range of records to be released are required below for the use or release of the following types of sensitive information:

Please initial on the line provided. Dates are required. -----

NOT APPLICABLE FOR THIS REQUEST

___ Alcohol, Drug or Substance Abuse Records Date from: __________ Date To: __________ ___ Mental Health Records Date from: __________ Date To: __________

I have read the contents of this form. I understand, agree, and allow the above-named Agency/Provider to release my information as I have stated above. I also understand that signing this form is voluntary and treatment, payment, or eligibility for benefits will not be affected if I do not sign this authorization. I have the right to revoke this authorization at any time by providing written notice to Stephouse Recovery at 9679 Ellis Ave. Fountain Valley, CA 92708. The revocation will not affect disclosures that Stephouse Recovery has 51 -74- 281
33 Revised August 2024
already taken action in reliance on the authorization. Information disclosed pursuant to this authorization may be re-disclosed by the recipient and no longer be protected by federal privacy law (HIPAA). Applicable State or other federal law may require the recipient to obtain your written authorization before re-disclosure unless otherwise permitted by such laws. I am entitled to a copy of this form. A copy of the original authorization is valid. This authorization expires three years from the date of my discharge from Stephouse Recovery.

Anticipated Date of Discharge: ___________________

Client Signature: _______________________________ Date: _______________

Completed by Stephouse Recovery Staff:

Printed Name: ___________________________________
Signature: ______________________________________ Date: ______________________

52 -75- 282
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Notice of Privacy Practices

Dear Stephouse Client:

Your medical and behavioral health treatment information and records are personal and private. Stephouse Recovery is committed to protecting your personal health information, also known as Protected Health Information or PHI. We are required by Federal and State laws to protect the privacy of your medical and behavioral health information.

We have developed and implemented policies, procedures, and safeguards in alignment with the HIPAA Security Rule and HITECH Act of 2009 to ensure the security, confidentiality, integrity, and availability of all PHI Stephouse creates, receive s, maintains, or transmits from improper use and disclosure. Stephouse provides ongoing training to employees and outside contractors to ensure compliance with all HIPAA privacy and confidentiality regulations.

If you wish to allow Stephouse Recovery to share your information with family, partners, or other persons or entities, we mus t have a release of information, signed by you, on file.

We are required by law to provide you with this Notice of our legal duties and privacy practices with respect to your medical and behavioral health information.

If you have any questions and/or would like additional information, you may contact Stephouse Management at (714) 394 - 3494.

How We May Use and Disclose Your Protected Health Information

The uses and disclosures of your protected health information are below. Use and disclosure of substance and/or alcohol use disorder information will be discussed separately.

1. Coordination of care. We may use and disclose your protected health information to provide care coordination or to direct or recommend a higher level of care and any related services, such as referral to treatment and detox centers.

We may also disclose your health information to personnel at the Orange County Health Care Agency (OCHCA) or community resources and providers who may be treating you or involved in your care.

2. Payment. We may use or disclose your protected health information to determine the OCHCA or your medical insurance’s responsibility to pay for or to permit us to bill and collect payment for the services that we provide to you.

3. Sober Living Operations. We may use and disclose your protected health information to support the business activities of Stephouse Recovery Inc. We may disclose your health information to other staff or business associates who perform billing, consulting, auditing, licensing, accreditation, and other services for Stephouse Recovery.

4. Required by Law. We may use and disclose your protected health information when required by Federal, State, or local law.

5. Business Associates. We may contract with business associates to perform certain functions or activities on our behalf, such as payment, business operations, lab tests, and other services. We release the minimum amount of PHI necessary for the business associate to perform the identified services. We require business associates to safeguard your information appropriately. Examples of business associates include contractors, billing companies, outsourced laboratories, and electronic medical records vendors.

6. Victims of Abuse, Neglect, or Domestic Violence. We may disclose your protected health information to other government agencies to report suspected abuse, neglect, or domestic violence. We will only disclose this information if you agree, if the law requires us to, or when it is necessary to protect som eone from serious harm.

7. Lawsuits and Legal Actions. We may use and disclose your protected health information in response to a court or administrative order, certain subpoenas, or other legal process. We may also use and disclose PHI to the extent permitted by law without your authorization, such as defen ding against a lawsuit or arbitration. 53 -76- 283
35 Revised August 2024

8. Law Enforcement. We may disclose your protected health information to authorized officials such as the police, sheriff, or FBI for law enforcement purposes and in response to legal processes, such as a search warrant or court order.

9. Coroners, Medical Examiners, and Funeral Directors. We may disclose your protected health information to funeral directors, coroners, and medical examiners to permit body identification, determine what caused the death, or for other official duties.

10. To Stop a Serious Threat to Health or Safety. We may use or disclose your protected health information if we believe it is necessary to avoid or lessen a serious threat to your health or safety or to someone else’s.

11. Military Activity and National Security. We may use or disclose the PHI of armed forces personnel to the applicable military authorities when they believe it is necessary to carry out military missions properly. We may also disclose your PHI to authorized federal officials as necessary for national security and intelligence activities or for the protection of the president and other government officials and dignitaries.

12. Identity Verification. We may photograph you for identification purposes. Your photo may be stored in your Stephouse Recovery Chart. You may decline to have your photograph taken.

13. Electronic Health Records. We may use an electronic health record to store and retrieve your health information.

We may also receive information about you from providers in the community who are involved with your care by using shared databases or health information exchanges.

14. Communication with Family and Others When you are Present. Sometimes a family member or other person involved in your care will be present when we are discussing your PHI with you. If you object, please tell us and we won’t discuss your PHI while that person is present.

15. Communication with Family and Others When you are Not Present. There may be times when it is necessary to disclose your PHI to a family member or others involved in your care because there is an emergency or you lack the decision-making capacity to agree or object. In those instances, we will use our professional judg ment to determine if disclosing your PHI is in your best interest. If so, we will limit the disclosure to the PHI that is directly relevant to the person’s involvement with your health care.

Uses and Disclosures of Your Protected Health Information Requiring Your Written Authorizations

We will obtain your written permission through a signed release of information form for the uses and disclosures of your PHI not covered by this Notice. You may revoke any release of information by submitting a request in writing at any time and we will stop disclosing PHI about you to the indicated party(s). Any disclosures made prior to the revocation are not affected by the revocation.

Uses and Disclosures of Your Substance and Alcohol Use Disorder Records

The confidentiality of your substance and alcohol use disorder records is protected by 42 USC 290dd -2 and the Department of Health and Human Services (HHS) regulations at 42 CFR Part 2 – Confidentiality of Substance Use Disorder Patient Records.

Generally, we are not allowed to disclose your participation in the program or identify you as having an alcohol or drug abuse problem to an outside person unless:
1) You consent in writing.
2) The disclosure is to prevent multiple 42 CFR Part 2 program enrollments. 3) The disclosure is allowed by a court order.
4) The disclosure is made to medical personnel to the extent necessary to meet a legitimate medical emergency. 5) The disclosure is made for certain audit and/or evaluation purposes.

54 -77- 284
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If you believe that the privacy of your information protected by 42 USC 290dd -2 and 42 CFR Part 2 has been violated, you may contact the U.S. Attorney’s Office, Central District of California, Santa Ana Branch Office at 411 W. Fourth Street, Suite 80 00, Santa Ana, CA 92701 or by phone at (855) 898-3957.

Your Rights Regarding Your Protected Health Information

1. Right to View and Copy Your PHI. Subject to certain exceptions, you have the right to view or get a copy of your protected health information that we maintain in records relating to received services or payment for services. Your request must be submitted in writing and a fee may be charg ed for the costs of copying, mailing, and for any other supplies used in fulfilling your request. In limited situations, we may refuse any requests to see or receive copies of your records. If denied, we will tell you why in writing and explain your right to have our denial reviewed.

2. Right to View and Copy Laboratory Test Results. You have the right to view and copy protected health information consisting of your completed laboratory test results obtained by Stephouse Recovery. A request must be submitted in writing and a fee may be charged for the costs of copying, mailing, and any other supplies used to fulfill your request.

3. Right to Request an Amendment
You have the right to request that we correct or add to your record if you believe there is a mistake in your PHI or that important information is missing. The request must be in writing; explain what corrections or additions you are requesting and the reasons the corrections or additions should be made. We may deny your request if it is not in writing or does not include a reason to support the request. We may also deny your request if:
▪ The information in your record is correct and accurate. ▪ We did not create the information in your record, or the person who created it is no longer available to make the amendment.
▪ The information is not part of the records you are permitted to view and copy.

If we deny your request for amendment, we will tell you why and explain your right to file a written statement of appeal in response to our decision.

4. Right to an Accounting of Disclosures
You have the right to request a list of our disclosures of your PHI. The request must be made in writing.

To request an accounting, please contact us at Stephouse Recovery, 9679 Ellis Ave. Fountain Valley, 92708 , or by email at [email protected]. A fee may be charged for copying, mailing, and any other supplies used in fulfilling your request.

The list will not include the following disclosures:
▪ Those that you provided signed authorization for.
▪ To carry out payment and health care operations.
▪ To parole officers, probation officers, or other law enforcement as required. ▪ Not covered by the right to an accounting.

5. Right to Request Restrictions on Uses and Disclosures of your PHI You have the right to request a restriction or limitation on how we use or disclose your PHI under certain circumstances. Restrictions or limitations can be discussed with Stephouse Recovery Management. We are not required to agree to your request in every situation, particularly when you do not fully pay for services.

6. Right to Request Confidential Communications
You have the right to request how we communicate with you to preserve your privacy. Please inform Stephouse Management if you prefer a specific form of communication; for example, if you do not wish to receive text messages.

7. Right to Revoke Releases of Information
You have the right to take back or revoke your written authorization to use and disclose your PHI at any time. You must let us know of your revocation in writing. Please note that we cannot take back any information already used or shared while the authorization was valid.
55 -78- 285
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8. Right to a Paper Copy of this Notice

9. Notification of a Breach of PHI

10. Right to File a Complaint
You have the right to file a complaint with Stephouse Recovery by writing to us at 9679 Ellis Ave., Fountain Valley, CA 92708.

You also have the right to file a complaint directly to the Secretary of the United States Department of Health and Human Services (DHHS) at DHHS, Region IX Office for Civil Rights, 90 7th Street, Suite 4 -100, San Francisco, CA 94103, or call (800) 368-1019, TDD (800) 537-7697. The complaint must be filed in writing and sent by mail, fax, or electronically by e-mail and within 180 days of when you found out the violation occurred.

56 -79- 286
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ACKNOWLEDGEMENT RECEIPT NOTICE OF PRIVACY PRACTICES
Stephouse Recovery, Inc.
9679 Ellis Ave.

Fountain Valley, CA 92708
I acknowledge that I have received a copy of the Notice of Privacy Practices Stephouse Recovery, Inc.

The Notice of Privacy Practices describes the types of uses and disclosure of my protected health information that might occur in receipt of sober living services, payment for services, or in the performance of the office operations. The Notice of Privacy Practices also describes my rights and the responsibilities and Stephouse Recovery, Inc. with respect to my protected health information.

Stephouse Recovery reserves the right to change the privacy practices that are described in the Notice of Privacy Practices. If privacy practices change, I will be offered a copy of the revised Notice of Privacy Practices. I may also obtain a revised Notice of Privacy Practices by requesting that one be mailed to me.

MY SIGNATURE BELOW ACKNOWLEDGES I HAVE RECEIVED A COPY OF THE NOTICE OF PRIVACY PRACTICES. ALL OF MY QUESTIONS HAVE BEEN ANSWERED AND I UNDERSTAND THAT I MAY MAKE INQUIRY TO THIS ACKNOWLEDGEMENT AT ANY TIME.

______________________________________ __________________

CLIENT NAME (PRINTED) DATE

________________________________________________________

CLIENT SIGNATURE

OFFICE USE ONLY: RECORD OF ACKNOWLEDGEMENT NOT OBTAINED ACKNOWLEDGEMENT WAS NOT OBTAINED FOR THE FOLLOWING REASON(S):
☐ Needed more time to review Notice of Privacy Practices. ☐ Wanted to consult with another person before signing. ☐ Unable to sign.
☐ Reason not given
☐ Other (please explain) __________________________________________

___________________________________

CLIENT NAME (PRINTED)

_________________________________________ ________________

STEPHOUSE RECOVERY STAFF (PRINTED) DATE

__________________________________________

STAFF SIGNATURE
57 -80- 287
39 Revised August 2024

EMPLOYMENT TRACKING FORM
Client Name: Date:

Please indicate your current employment/volunteer/student status:
◻ Employed Full-Time
◻ Employed Part-Time
◻ Attending school
◻ Volunteering
◻ I am not currently employed, volunteering, or enrolled in school at the time of intake to Stephouse Recovery. I will notify the Stephouse staff when this status has changed. I understand that staff will regularly follow up on my progress to obtain employment, volunteer, or enroll in school.

If employed part-time, please indicate the approximate number of hours you are working each week.

Name, Address & Phone number of Employer:

If volunteering, please indicate the approximate number of hours you are volunteering each week.

Name, Address & Phone number of the Organization you volunteered for:

Name of school you are attending:

Are you attending online? Yes ◻ No ◻

Client Signature: _________________________________ Date: _________________ 58 -81- 288

EXHIBIT H

INTRODUCTORY LETTER

To our Neighbors,
We would like to take a moment to introduce ourselves to you and share with you our presence in the neighborhood. StepHouse Recovery is a Sober Living residence located at 1601 Baker St. Our mission is to provide a safe and sober environment for individuals transitioning from a treatment program back to mainstream living. Each resident participates in a structured recovery program provided by the Orange County Health Care Agency. StepHouse operates with the oversight of Orange County Health Care Agency and the Orange County Sheriff’s Department, as well as permission from the City of Costa Mesa.

A well trained house manager provides round-the-clock supervision for the residents.

Should you ever have any disturbance or issue resulting from our home please let us know. Our goal is to be a good neighbor, and we will address any concerns as soon as possible.

Below is contact information for Stephouse staff and Orange County Health Care agency staff.

Stephouse Recovery
George Vilagut
[email protected]
(888) 923-7623

Orange County Healthcare Agency
Monica Curran
[email protected]
(714) 834-2488

or
Monica Cabral
[email protected]
(714) 834-2027

Sincerely,

George Vilagut
Executive Director
Stephouse Recovery, Inc.

59 -82- 289
closet
closet
closet
linen
closet
closet
HVAC
closet
11’ x 5’
bathroom
bathroom
11’ x 5’
window sliding door
window
window
window
window
window
window window window
window
front
door
recreation room
24’ x 16’
kitchen
13’ x 11’
dining
room
21’ x 11’
living room
13’ x 8’
12’ x 14’
2 people
bedroom
12’ x 14’
2 people
bedroom

15.5’ x 10’
1 person
bedroom
11’ x 11’
1 person
bedroom
9’ x 11’
House manager
bedroom
hallway 17’ x 3.5’
2 Car Garage
(resident parking)
Parking for 3 vehicles on driveway
Residence total square footage is 2200 sq ft

EXHIBIT F
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290

EXHIBIT G
-84-
291

-85-
292

-86-
293

Page 1 of 43 ends

Costa Mesa City CouncilMay 5, 2026

Costa Mesa City Council
May 5, 2026