City Council Meeting
May 5, 2026
1601 Baker Street
Stephouse Recovery
2 Background
• State-licensed group homes (up to six residents) are exempt from local regulation.
• Unlicensed group homes (up to six residents) in residential zones must obtain a SUP per CMMC Title 13, Chapter XV.
• Ministerial process - staff’s role is limited to verifying whether the application conforms to the ordinance, not making discretionary judgments.
• Director of Economic and Development Services may issue the SUP as a ministerial permit upon verification that facility meets all adopted location and operational standards.
3 Project Background
• On October 23, 2025, the City’s Hearing Officer considered the SUP application. 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 CMMC Section 13-311.
• Public Comments:
14 public (all in opposition) were received
Nine written and five oral comments
Primary Concerns:
- Impact to quality of life;
- Proximity to a residential care facility;
- Advertising practices;
- Overcrowding and parking congestion;
- Personal and property safety; and
- Noise
• On January 5, 2026, the City’s Hearing Officer issued the SUP Compliance with CMMC Section 13-311
4 Project Site
• Special Use Permit (SUP)
PGSH-24-0002
• SUP for a sober living
home serving six recovery
residents and one live-in
house manager
• Single-Family Residential
Subject
Site
5 Floor Plan & Street View
6 Standards of Review & Conditions of Approval
• COA #1 - Property inspection by Fire Department prior to operation (smoke/CO detectors, life safety)
• COA #2 - Compliance with CMMC Section 13-311; violations may result in revocation.
7 Operational Standards
Appeals: The Hearing Officer’s decision may be appealed to the Planning Commission pursuant to Title 2, Chapter IX (Appeal and Review Procedure) • Good Neighbor Policy
• No Drugs or Alcohol
• Parking Compliance & Visitation Policy
8 Call For Review
• On January 7, 2026 – Application for Review by Mayor Stephens Concerns regarding impacts to neighborhood (See Attachment 4) • On February 23, 2026 – Planning Commission Review
‘De novo’ hearing
Consider new evidence
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 • Public Comments
Neighborhood safety
Compatibility with single-family residential area
Increase in traffic, noise, and crime
• Planning Commission upheld the Hearing Officer’s issuance of the SUP Ministerial decision
Compliance with code requirements
No new evidence to overturn approval
9 Call For Review
• On March 2, 2026 – Application for Review by Council Member Buley Opportunity for community to voice concerns (See Attachment 10) • The City Council Review
‘De novo’ hearing
Consider new evidence
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
10 City Council Public Notice & Public Comments
Pursuant to CMMC Section 13-29(d) three types of public notification have been completed no less than 10 days prior to the date of the public hearing:
1. Mailed notice
2. On-site posting
3. Newspaper publication
As of the date of the report, no written public comments have been received. 11 City Council Actions & Alternatives
The City Council may take the following actions:
• Uphold the decision of the Planning Commission upholding the Hearing Officer’s decision; or
• Determine that the application does not meet the requirements of Section 13-311, overturn the Planning Commission’s decision, and thereby deny the permit.
Recommendation
12 City Council to adopt a Resolution to:
1. Find that the project is categorically exempt from the provisions of the California Environmental Quality Act
(CEQA) per CEQA Guidelines Section 15268 (Ministerial
Projects) and 15301 (Existing Facilities); and
2. Uphold 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.
City Council Meeting
May 5, 2026
FY 2026-2027
CDBG & HOME ANNUAL ACTION PLAN
2 Background
Costa Mesa is a recipient of two U.S. Department of Housing and Urban Development (HUD) grant program funds:
• Community Development Block Grant (CDBG)
Used to achieve one of three National Objectives:
1) Elimination of slums or blight
2) Meet an urgent need, or
3) Benefit low- and moderate-income persons.
• HOME Investment Partnerships (HOME)
HOME funds create affordable housing for low-income households.
These two HUD programs annually provide approximately $1.3 million to assist low-income Costa Mesa residents.
3 Background – 2026 Orange County Income Limits
% median
income
Persons in Household
1 2 3 4 5 6 7 8
Extremely
Low (30%) $39,100 $44,700 $50,300 $55,850 $60,350 $64,800 $69,300 $73,750 Very-Low
(50%) $65,150 $74,450 $83,750 $93,050 $100,500 $107,950 $115,400 $122,850 Low
(80%) $104,200 $119,100 $134,000 $148,850 $160,800 $172,700 $184,600 $196,500 Note: CDBG and HOME programs generally require household incomes to be at or below 80% of the Area Median Income (AMI).
4 5-Year Consolidated Plan
• The City’s Consolidated Plan for FY 25/26 to FY 29/30 was adopted on May 20, 2025.
• Required to received CDBG and HOME funds.
• Identifies and prioritizes housing and community needs. • Outlines goals, objectives and resources to address needs. • Annual Action Plan is required each year for the use of CDBG and HOME funds.
5 Public Comment Period
• Annual Action Plan Public Comment
Period: April 3 – May 5
• Publication in Daily Pilot
• Notice to neighboring city housing
departments
• City Spotlight
• Social Meda Post
• Weekly Snapshot
• Flyers posted in City facilities
Consolidated Plan Goal & Description
1 Housing Preservation
To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code enforcement and rental housing acquisition/rehabilitation 2 Infrastructure and Facility Improvements
To enhance the suitability of the living environment through improvements to public infrastructures and facilities
3 Homeless Continuum of Care
To provide supportive services and housing assistance for persons at risk of and experiencing homelessness
4 Public Social Services
To provide services for low- and moderate-income persons and those with special needs 5 Program Administration
To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services and complying with all HUD program requirements, including the provision of fair housing services
7 Annual Action Plan: FY 2026-2027 Funding
• The City will receive $1.21M in CDBG and HOME funds from HUD FY 2026-2027 CDBG Funding:
FY 2025-2026 CDBG Allocation $880,986
Previous Year(s) Unused Funds $172,881
Program Income $0
Total $1,053,867
FY 2026-2027 HOME Funding:
FY 2025-2026 CDBG Allocation $377,329.57
Previous Year(s) Unused Funds $634,668
Program Income $50,000
Total $1,061,997.57
8 FY 2026-2027 CDBG Funds- $1.05M
1. Public Service Grants: $132,147
• Maximum 15% of annual allocation
2. Code Enforcement: $433,913
3. Housing Rehab: $70,000
4. Administration: $176,197
• Maximum 20% of annual allocation
• Includes $20,000 Fair Housing
Services
5. Unallocated: $241,610
• Potential projects: Senior Center Roof
and Westside Street Improvement
Code
Enforcement
41%
Housing Rehab
7%
Public Service
Grants
12%
Administration
17%
Unallocated
23%
CDBG Recommendations
9 CDBG Map
10 CDBG Public Service Applications
Applicant Name Program
#
Served Population
Served
Amount
Requested
Committee
Recommends
Amount
Recommended
Families Forward Support Services 50 Homeless $30,000 Yes $29,049 Human Options Housing 28 Homeless $30,000 Yes $29,049
Trellis Labors of Love 30 Seniors $30,000 No --
Project Hope Alliance Case Management 90 Youth $30,000 Yes $29,049 Stand Up for Kids OC Case Management 20 Youth $30,000 No -- Dance 4 Joy Ministries Youth Programming 300 Youth $15,000 Yes $15,000 Community Health
Initiative of OC
Health Access
Services 800 Low- and
Mod- Income $30,000 No --
TOTAL $102,147.90
11 FY 2026-2027 HOME Funds $1.06M
1. Housing Rehabilitation Program:
$436,482
2. Tenant Based Rental Assistance:
$200,000
3. Affordable Housing (CHDO): $56,599
• 15% of annual allocation set-aside
required
4. Administration: $34,732
• Maximum 10% of annual allocation
5. Unallocated: $331,184
Housing
Rehab
41%
TBRA
19%
Unallocated(s)
31%
CHDO
5%
Admin
4%
HOME Recommendations
12 Recommendation
Staff recommends that City Council:
1. Approve the recommended allocation the Fiscal Year (FY) 2026-2027 Community Development Block Grant and HOME Investment
Partnerships Grant.
2. Adopt a resolution to:
• Approve the FY 2026-2027 Annual Action Plan
• Authorize the City Manager, or the City Manager’s designee, to submit the 2026-2027 Annual Action Plan to the U.S. Department of Housing and Urban Development.
• 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 2026- 2027 Annual Action Plan.
City Council Meeting
May 5, 2026
Continuation of the Adoption of Ordinance
Amending Chapter III of Title 15 of the Municipal
Code Relating to Public Works – Drainage
2 Actions on April 21, 2026 Council Meeting
City Council discussed the appeals process procedure related to the ordinance and in the language of Section §15-75 Appeals:
• City Attorney recommended the item be continued until the next meeting to make corrections to the ordinance.
• City Council opened the public hearing and continued the item until the next regularly scheduled City Council Meeting on May 5, 2026.
3 Ordinance Updated
The ordinance is updated in Section §15-74 Credits, Reimbursement, & Reductions, in lieu of Section §15-75 Appeals:
• A developer may be allowed a drainage fee reduction provided they are able demonstrate substantial showing of evidence that they have increased site permeability by using low impact design features such as bioswales and infiltration basins.
• Requests for a drainage fee reduction and evidence to support the request may be submitted through the permit application process.
• Upon review of proper evidence, the Public Works Director has the authority to reduce the drainage fee as warranted.
• Per §15-74(D), a developer may appeal the Public Works Director’s decision to the City Council pursuant to section §15-75 Appeals.
4 Staff Recommendation
Staff recommends the City Council:
• Adopt Ordinance No. 2026-05, 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.
• Find that the adoption of the ordinance is not a
“project” under the California Environmental Quality
Act (CEQA), pursuant to CEQA guidelines
§15378(b)(4).
ARTS
COMMISSION
PRESENTATION
TO CITY COUNCIL
April 21, 2026 | 6:00 p.m.
1 ATTACHMENT 1
Arts and Culture Master Plan Implementation
● Annual Art Crawl Experience
● Revised guidelines and standards for
Exhibition spaces in City facilities
● Created new guidelines for Utility Box
Art Program
● Updated Arts and Culture Calendar and
Artist Directory
● Arts Grant Program with new guidelines
and application
● Free Park Performances at parks and
city events
2022-2026
● Poet Laureate Program
● Implemented optional private property
Mural Permit in TESSA
● Free at Segerstrom Center Campus
program
● ARTventure juried art exhibition and
awards ceremony
● Hired consultant Arts Orange County to
create an Art in Public Places Report to
guide the public art goals in the ACMP
The following programs and goals from the five (5) year plan have been implemented and re-evaluated:
2 Accomplishments for 2025
• Selection of new Poet Laureate for two-year term
as Costa Mesa’s first ever Poet Laureate
• Reviewed and approved twelve (12) new designs
for the Utility Box Art Program
• Reviewed and approved nine (9) grantees for the
Arts Grant Program
• Reviewed and made changes to the Arts Grant
Program guidelines that included increases to
arts grant amounts
• Participation in a review panel to select poetry for
a new public art initiative: Sidewalk Poetry project
for implementation at Brentwood Park
• Reviewed and approved a new Scope of Work for
ACMP update
• Discussion and review of the Art in Public Places
Report as part of a larger plan to draft a public
art ordinance for implementation in the future as
a mechanism to fund public art projects
3 Upcoming Plans for 2026
Assist in the
implementation of a
potential update and new
Arts and Culture Master
Plan for City Council review
Review and approve new
poems for new Sidewalk
Poetry Project for upcoming
park renovations at
Ketchum-Libolt and
Shalimar Parks
Draft an official public art
ordinance for City
Council review
4 Upcoming Plans for 2026 (continued)
Review and make
suggestions for optional
TESSA mural applications
for private property
Review and approve
new designs for the
Utility Box Art
Program
Review and
approve new Arts
Grant Program
grantees
5 Purpose for Budget Priorities for 2026-27
• The current framework requires City finance staff to
return to Council each year to request general fund
dollars to backfill a recurring shortfall.
• Our recommendations are not a request for new
funding. The intent is to update city policies and
municipal codes to remove recurring inefficiencies
and better align existing and anticipated revenue
with their original purpose.
• Updating city policies and municipal codes where
applicable would ensure arts funding is properly
designated from the outset, staff time is not
consumed by avoidable annual shortfalls, and public
dollars are directed as efficiently as possible toward
the outcomes the Arts and Culture Master Plan was
designed to deliver.
6 Proposed Budget Priorities for 2026-27
3 Dedicate a portion of any
Transient,Occupancy Tax
increase to the Public Art Fund
Reclassify the Arts
Specialist position to the
City’s General Fund
Establish a
dedicated
Public Art Fund
6 Approve new budget
framework to fund the interim
period between the last year
of the current ACMP and the
implementation of the
proposed update to the ACMP
4 Increase the Cannabis Tax
Allocation from 0.5% to 1.0%
to fund the full
implementation of the Arts
and Culture Master Plan
5 Approve consultant, if
selected by City
Council, to work on a
new ACMP update
1 2
7 Illustrative Budget Framework for 2026-27
• The following budget frameworks are provided to
illustrate how the City’s arts funding can be organized more clearly and deployed more effectively under
current operating conditions.
• As the City of Costa Mesa approaches the end of the
current fiscal year, the Arts and Culture Master Plan
has effectively expired, and an updated plan has not
yet been adopted.
• These next two models also account for the anticipated cost of the Master Plan update contract, ensuring
that the update process does not create additional
pressure on the City’s general fund and remains
consistent with the intent of the ordinance.
• Both scenarios organize funding into clear categories and reflect a simple principle: core programming and
contractual obligations are funded first, with
remaining funds directed toward a Public Art Fund
capable of supporting visible, long-term improvements
across the City.
8 Proposed Budget for 2026-27 @ 0.5% Cannabis T ax Revenue FY26 & FY27 PROPOSED BUDGET @ 0.5% CANNABIS TAX REVENUE Account Item FY25/26 Proposed 26/27 Proposed 27/28
Multimedia, Promos
Free at Segerstrom Center Campus $ 60,000.00 $ 30,000.00 $ 30,000.00 Utility Box Art Program $ 12,500.00 $ 12,500.00 $ 12,500.00 Consulting
Artist Laureate Program $ 2,500.00 $ 5,000.00 $ 5,000.00 Large-Scale Installations $ - - $ - Master Plan Update $ 60,000.00 $ 60,000.00 $ - Recreation
ARTventure/Action Arts $ 30,000.00 $ 45,000.00 $ 45,000.00 Galleries $ 400.00 $ 900.00 $ 900.00 Free Park Performances $ 48,000.00 $ 48,000.00 $ 48,000.00 Art Crawl $ 3,000.00 $ 4,000.00 $ 4,000.00 Grants
Arts Grants Program $ 12,500.00 $ 30,000.00 $ 32,500.00 Public Art
Board Member Fees Arts Commission Stipends $ 8,400.00 $ 8,400.00 $ 8,400.00 Public Art Fund $ - $ 4,600.00 $ 62,100.00 Total Events and Initiatives $ 237,300.00 $ 248,400.00 $ 248,400.00 9 Proposed Budget for 2026-27 @ 1.0% Cannabis T ax Revenue FY26 & FY27 PROPOSED BUDGET @ 1.0% CANNABIS TAX REVENUE Account Item FY25/26 Proposed 26/27 Proposed 27/28
Multimedia, Promos
Free at Segerstrom Center Campus $ 60,000.00 $ 30,000.00 $ 35,000.00 Utility Box Art Program $ 12,500.00 $ 25,000.00 $ 30,000.00 Consulting
Artist Laureate Program $ 2,500.00 $ 7,500.00 $ 7,500.00 Large-Scale Installations $
Master Plan Update $ 60,000.00 $ 60,000.00 $ - Recreation
ARTventure/Action Arts $ 30,000.00 $ 45,000.00 $ 45,000.00 Galleries $ 400.00 $ 1,000.00 $ 1,000.00 Free Park Performances $ 48,000.00 $ 60,000.00 $ 60,000.00 Art Crawl $ 3,000.00 $ 4,000.00 $ 4,000.00 Grants
Arts Grants Program $ 12,500.00 $ 75,000.00 $ 100,000.00 Public Art
Board Member Fees Arts Commission Stipends $ 8,400.00 $ 8,400.00 $ 8,400.00 Public Art Fund $ - $ 112,500.00 $ 177,500.00 Total Events and Initiatives $ 237,300.00 $ 428,400.00 $ 468,400.00 10 Press
11 Q&A
12