City Council Meeting
September 1, 2026
(PCTY-26-0003)
Housing Element Amendment
2 Overview
• Background
Housing Element adoption and revisions
No net loss and 180-day Housing Element amendment
New Commune DTLA v. City of Redondo Beach Court of Appeals • Property Owner Requests
Sites removed
Sites added
• Housing Element Amendment
Identification of new sites (95 new sites)
Text revisions
Public input
HCD preliminary review
• Revised Draft Housing Element Public Review
• Planning Commission Recommendation and Next Steps
3 • Housing is one of seven state-mandated
General Plan “Elements”
• State law requires this Element be
updated every eight years (“cycle”)
• February 2022: City adopted Housing
Element
• March 2026: Housing Element
amendment (remove 17 sites, add 2
sites)
• City made “no net loss” findings and
triggered 180-day period to identify new
Housing Element Sites to meet RHNA
capacity and establish buffer
• July 16, 2026 Attorney General Filing
Project Background
4 Court of Appeals Decision Impact
• October 10, 2025: New Commune DTLA v. City of
Redondo Beach Court of Appeals opinion issued.
• An overlay can only satisfy the RHNA if it establishes the following minimums:
50% residential use
20 units/acre density
• Reduces the flexibility in the City’s strategy to meet the RHNA
• City notified Housing Element site owners of Court of Appeals decision:
December 2025
January, May and August 2026
5 Housing Element Amendment: Sites Inventory
• 28 sites removed (approximately 7,084 units):
HE
Site Address or APN HE
Site Address or APN HE
Site Address or APN
HE
Site Address or APN
49** 3539 Howard Way 96* 610 W. 18th St. 139* 3400 Bristol St. 194* 2180 Harbor Blvd. 74 2104 Placentia Ave. 110 2131 Placentia Ave. 140* 685 Sunflower Ave. 195* 2180 Harbor Blvd. 75 885 W 18th St 133 3303 Harbor Blvd. 141* 3410 Bristol St. 196 3333 Susan St. 78 1791 Placentia Ave. 134* 3390 Harbor Blvd. 145* 3333 Bristol St 198* APN: 140-041-83 79 1751 Placentia Ave. 136* 3390 Harbor Blvd. 146* APN: 412-491-11 203* 1590 Adams Ave. 80 1650 Sunflower
Ave.
137* 3315 Fairview Rd. 147* 3333 Bristol St. 204* 1590 Adams Ave. 92 2196 Harbor Blvd. 138* 1201 S. Coast Dr. 164 1491 Baker St. 205* 3420 Bristol St. *Sites removed by March 17, 2026 City Council Action
**Property owner requests to remove sites received after August 17, 2026 Planning Commission recommendation 6 Housing Element Amendment: Sites Inventory
• 14 property owners of Measure K sites requested to be added to the Housing Element inventory:
HE Site Address or APN HE Site Address or APN
27 2729 Bristol 174 2045 Placentia Ave.
91* 2821 Bristol St. (418-181-11) 175 1485 Dale Way
96 1998 Harbor Blvd. 176 1770 Newport Blvd.
97* 2000 Harbor Blvd. 177 1176-1778 Newport Blvd.
113 720-730 W 17th St. 178 1780-1784 Newport Blvd.
172 732-746 W 17th St 179 1784 Newport Blvd.
173 2755 Bristol 180** 418-102-11
*Sites added by March 17, 2026 City Council Action
**Property owner request to add site processed after August 17, 2026 Planning Commission recommendation 7 Housing Element Amendment: Sites
• Apply realistic capacity assumption (80 percent)
• Ensure sufficient capacity in each income category:
very-low, low, moderate and above moderate.
• Criteria for new Housing Element Sites:
Must be a Measure K site
Cannot be a current or former Housing Element
site
Within Moderate, High and Highest Resource
census tracts
Remove sites with size restrictions (lots >0.5
acres and <10 acres)
Remove sites with existing residential uses
Remove sites with high utilization rate (>60
percent)
Apply 20 percent realistic capacity deduction
Identify sites with developer interest
8 Housing Element Amendment: Text Revisions
• Remove text references to sites removed from Housing Element Sites Inventory
• Promote Affirmatively Furthering Fair Housing (AFFH)
• Updates on the City’s implementation of Housing Element programs • Text revisions needed to comply with state law, where appropriate • Include additional updates, as needed, to reflect ongoing community outreach
• Incorporate Environmental Justice Policies
• Established through SB 1000
• Implements Housing Element program 2G
• Identifies 16 total EJ policies (14 existing policies, 1 revised policy, 1 new policy)
9 Housing Element Amendment
• 95 New Housing Element
Opportunity Sites
• 6,996-unit capacity, including
buffer
• Interactive GIS map
10 RHNA Capacity and Buffer
Income Category Very Low Low Moderate Above
Moderate TOTAL
RHNA (2021-2029) 2,919 1,798 2,088 4,959 11,760
Total Units Towards
RHNA 5,167 2,995 6,888 15,238
Total Capacity over
RHNA +454 +907 +1,929 +3,478
Buffer (10%) (43%) (39%) (30%)
11 Housing Element Amendment: Public Input
• May 2026: Outreach to property owners of existing and proposed Housing Element sites
• NWWAB Round 3 Community Outreach:
Interactive GIS map
June 3, 2026: Open House
June 10, 2026: Stakeholder Meetings
• Draft Housing Element Public Review (June 8-15 2026)
9 Public Comments received and incorporated
• Revised Draft Housing Element Public Review (August 12-19 2026) 6 Public Comments received and incorporated, including requests to remove 2 properties (3539 Howard Way and 1650 Sunflower Ave.) and add APN: 418- 102-11 in conjunction with 1485 Dale Way
12 Housing Element Amendment: HCD Revisions
• Sent to HCD on June 24, 2026 (60-day preliminary review) Reflect progress the City has made towards its RHNA obligations; Detail on specific Housing Element sites, regarding existing uses and redevelopment potential;
Housing Element Opportunity Sites identified in prior planning periods; Providing additional rationale for small sites (i.e., under 0.5 acres); and Providing additional clarification on Accessory Dwelling Unit (ADU) affordability determinations.
• City received HCD formal review letter on August 21, 2026 City’s Housing Element meets statutory requirements of State Housing Element Law
Housing Element can be certified pending City Council approval and rezone of Housing Element sites (including Fairview Developmental Center) 13 Recommendation
The Planning Commission recommends the City Council:
Adopt Resolution No. 2026-XX to approve a General Plan
Amendment to amend the City of Costa Mesa Sixth Cycle
(2021-2029) Housing Element of the City’s General Plan to add additional Housing Element Opportunity Sites needed to maintain Regional Housing Needs Allocation (RHNA)
capacity, remove certain Housing Element Opportunity Sites, adopt associated revisions (including environmental justice policies) and the associated Environmental Quality Act
environmental determination (Attachment 1)
14 Next Steps
1. Fairview Development Center Specific Plan City
Council consideration and approval (September 15)
2. Submit to HCD for Housing Element certification
City Council Meeting
September 1, 2026
Intent to Overrule the Airport Land Use Commission's
Determination for the Neighborhoods Where We All Belong Zoning Updates and Housing Element Implementation
2 Project Background
• Neighborhoods Where We All Belong
(NWWAB) will implement 23 Housing Element
programs including Measure K.
• As originally proposed, NWWAB would apply
the Mixed-Use Overlay District (MUOD) to all
Measure K sites.
3 Project Background
• Cities refer specific actions to the Airport Land Use Commission (ALUC) to determine consistency with the Airport Environs Land Use Plan (AELUP).
• In 2022, the City overruled the ALUC’s determination that the Housing Element was inconsistent with the AELUP.
• On July 16, 2026, the ALUC determined that as proposed, NWWAB is inconsistent with the AELUP related to noise, Safety Zones, Runway Protection Zone (Safety Zone 1), and general policy.
4 ALUC Issue and City Response
1) 1,000-square-feet of a Measure K property is in Safety Zone 1, and one property is in Safety Zone 2.
Will not apply the MUOD to those properties.
2) Seven Measure K sites are in Safety Zone 3 where the CA Airport Land Use Planning Handbook allows infill at the average of surrounding residential area.
Will not apply the MUOD to non-Housing Element Measure K sites in Safety Zone 3.
5 ALUC Issue and City Response
3) Approximately 140 Measure K sites are in Safety Zone 6, where the Handbook allows a maximum density of “no limit.”
No modification.
4) 16 Measure K properties are in the 65 dBA CNEL noise contour. Will not apply the MUOD to non-Housing Element Measure K sites in the contour.
5) The North Costa Mesa Specific Plan (NCMSP) allows buildings up to 315 feet and could exceed the airport obstruction imaginary surfaces. • No modification. NWWAB maximum height is 108 feet. In the NCMSP overrule, the Federal Aviation Administration (FAA) conditioned future buildings with heights above 173 feet would require a determination of “no hazard” by the FAA to move forward.
6 Overrule Process
• ALUC is an advisory body.
• The City Council has the final authority to make land use decisions in Costa Mesa.
• A City Council must make two findings in a Resolution passed by an affirmative 2/3 vote to initiate the minimum 45-day overrule process. 7 Next Steps
• If authorized by a 2/3 affirmative vote, staff will submit a letter and Resolution to the ALUC bt September 2nd; begin mandatory 45-day period (ending October 17, 2026).
• NWWAB Planning Commission: September 14, 2026
• City Council First Reading: Tentatively scheduled: October 6, 2026 • City Council Overrule Public Hearing Tentatively scheduled: October 20, 2026 • City Council Second Reading Tentatively scheduled: October 20, 2026 Recommendation
8 • Adopt a Resolution regarding the City’s intent to
overrule the ALUC’s inconsistency determination for
NWWAB; and
• Direct staff to forward the Resolution to the ALUC and schedule a City Council public hearing at least 45 days later to consider overruling the ALUC determination.
September 1, 2026
ADOPTION OF MOUS AND SALARY RESOLUTIONS
FOR CMPA, CMPMA, CMCEA AND CONFIDENTIAL
EMPLOYEES
2 Background
• The current Memoranda of Understanding (MOU) for the Costa Mesa Police Association (CMPA), Costa Mesa Police Management Association (CMPMA), and Costa Mesa City Employees Association (CMCEA) expired on June 30, 2026. • The City’s Negotiation Team held a series of collaborative and productive meeting with each unit’s negotiation teams which resulted in tentative agreements. • The ratification process for each group has been completed. 3 Key Provisions of CMPA Agreement
• Term: July 1, 2026 – June 30, 2028 (2-year term)
• Salary and Wages:
2% increase effective July 2026, January 2027, July 2027, and January 2028 • Restructure Police Sergeant Salary Range (effective July 1, 2026):
Restructure from current 7-step range 5-step range
o New structure eliminates Steps 1-4 (inactive steps) of the current structure o Adds two additional steps to the top of the range to create the new 5-step structure
• Health Contribution (effective May 1, 2027):
$200 increase to the City’s contribution for a total of $2,619 per month • Bilingual Pay (effective July 1, 2026):
2.5% or 5% of base pay (based on proficiency) - conversion from flat rate based on top step Senior Police Officer (inactive classification) 4 Key Provisions of CMPA Agreement
• Shift Differential (effective July 1, 2026):
3% of base salary for employees assigned to AM patrol shift (including AM shift for those working Waterfall schedule.
• Court Compensation (effective July 1, 2026):
Memorializes current procedures for when off-duty employees are subpoenaed and required to be on standby for court sessions and for court appearances. Increases standby benefit from 1 ½ hours to 2 hours in certain scenarios.
Increase from 1 ½ hours to 2 hours when an employee is required to be on standby during off hours on a regularly scheduled work day. • Uniform Allowance (effective July 1, 2026):
$500 increase for employees assigned to plain clothes assignment for a total of $1,000 annually.
5 Key Provisions of CMPMA Agreement
• Term: July 1, 2026 – June 30, 2028 (2-year term)
• Salary and Wages:
2% increase effective July 2026, January 2027, July 2027, and January 2028 • Restructure Police Lieutenant Salary Range:
Restructure from current 7-step range 4-step range effective July 1, 2026 3-step range effective July 1, 2027
Includes a 10.25% differential to Step 4 (July 2026) and Step 5 (July 2027) of the restructured Police Sergeant salary range
• Health Contribution (effective July 1, 2027):
$200 increase to the City’s contribution for a total of $2,619 per month • Retire Health Savings (effective January 1, 2027):
Increase City contribution by 1% to a total of 2%
6 Key Provisions of CMPMA Agreement
• Deferred Compensation (effective January 1, 2027):
401(a) plan converted to 457
Increase City contribution by 1% (Lieutenant) and 0.5% (Captain) for a total of 2% • Bilingual Pay (effective July 1, 2026):
2.5% or 5% of base pay (based on proficiency) - conversion from flat rate based on top step Senior Police Officer (inactive classification) • Overtime (effective July 1, 2026):
Increase from straight time to time-and-a-half when overtime is necessary • Sick Leave (effective July 1, 2026):
Retain accrual rates and balances upon promotion into the unit • Uniform Allowance (effective July 1, 2026):
$500 increase for employees assigned to a plain clothes assignment, for a total of $1,000 annually.
7 Key Provisions of CMCEA Agreement and
Additional Compensation Updates
• Term: July 1, 2026 – June 30, 2028 (2-year term)
• Salary and Wages:
3% increase effective July 2026 and July 2027
Addition of new Planning Technician and Senior Permit Technician classifications
• City Health Contribution:
$200 increase effective January 2027 for a total of $2,000 per month $200 increase effective January 2028 for a total of $2,200 per month • Compensatory Time: increase maximum from 60/80 to 100 hours • Sick Leave: Increase accrual rate from 3.69 to 4.5 hours per pay period and waive the limitation cap in case of serious health conditions for a family member • Holiday Pay: Allow rollover role over of up to 80 hours 8 CMCEA Five Compensation Updates
• The current CMCEA MOU contains a provision for the association to request up to five classification and five compensation inequity studies on an annual basis. • For 2026, CMCEA identified five classifications for compensation review, and the Human Resources Division conducted a study for each classification based on the prevailing market. The five classifications and recommended adjustments based on the market study are as follows:
Accounting Specialist I – 10.68%
o Includes adjustment to Accounting Specialist II and Business License Inspector Assistant Engineer – 8.92%
Buyer – 16.39%
Permit Processing Specialist – 12.97%
Senior Engineer – 8.38%
9 Additional Compensation Recommendations
• Deputy Police Chief:
1.65% increase effective July 2026 for internal compaction with Police Captain classification
2% increase effective July 2027 to align with CMPMA’s increase • Police Recruit:
2% increase effective July 2026 and January 2027 to align with CMPA’s increases
o Maintains 16.3% differential from Step 1 of Police Officer per Council resolution.
• Reserve Public Safety Dispatcher:
3% increase effective July 2026 and July 2027
o Adjusts for internal compaction within the Public Safety Dispatcher series and aligns with CMCEA’s increase
Fiscal Review
• Estimated fiscal impact for negotiated agreements for FY 26/27:
CMPA: $1.01 million
CMPMA: $163,093
CMCEA: $1.46 million
Confidential: $194,740
• Estimated fiscal impact for negotiated agreements for FY 27/28:
$3.7 million
• Estimated fiscal impact for the 2026 annual CMCEA market adjustments for FY 26/27: $275,316
• Estimated fiscal impact for Deputy Police Chief for FY 26/27:
$11,078
• Estimated fiscal impact for Reserve Senior Public Safety Dispatcher for FY 26/27: $7,957 10
Recommendations
• Staff recommends to approve and adopt the agreement and salary and benefits resolutions for CMPA, CMPMA, CMCEA and non- represented Confidential, Recruit and Part-Time Employees • Authorize the City Manager and the City’s Negotiation Team to execute the agreements and resolutions.
• The proposed agreements support the City’s Strategic Plan Goals to Recruit and Retain High Quality Staff and Strengthen the Public’s Safety and Improve the Quality of Life.
11 ````
QUESTIONS?
CITY OF COSTA MESA
FINANCE DEPARTMENT
SUPPLEMENTAL MEMORANDUM
TO: THE HONORABLE CITY COUNCIL
FROM: MARK KHOU, BUDGET AND PURCHASING MANAGER
DATE: SEPTEMBER 1, 2026
SUBJECT: AGENDA ITEM #26-396: ADOPTION OF THE AGREEMENTS FOR SUCCESSOR
MEMORANDA OF UNDERSTANDING (MOU) BETWEEN THE CITY OF COSTA
MESA (CITY) AND THE COSTA MESA POLICE ASSOCIATION (CMPA), THE
COSTA MESA POLICE MANAGEMENT ASSOCIATION (CMPMA), THE COSTA
MESA CITY EMPLOYEES ASSOCIATION (CMCEA) AND THE CONFIDENTIAL
UNIT AND THE ADOPTION OF ACCOMPANYING SALARY RESOLUTIONS, AND
CMCEA ANNUAL COMPENSATIONS UPDATES
The Finance Department is providing an update to the Fiscal Review included in the September 1, 2026 Agenda Report for the Adoption of the Agreement for Successor Memoranda of Understanding.
FISCAL REVIEW:
Fiscal Impact Analyses were prepared pursuant to the City Council Policy 300-8 Transparency in Labor Negotiations, and certified by LSL, the City’s external auditor. The FY 2026/27 estimated fiscal impact for each labor group is: CMPA is $1,014,385, CMPMA at $163,093, CMCEA at $1,551,894 $1,458,375, and CMCEA-Confidential at $194,740 $182,652. The FY 2026/27 estimated fiscal impact for the adjustment for Deputy Police Chief is $11,078 and Reserve Senior Public Safety Dispatcher is $7,957. There is no fiscal impact for Police Recruit as their salaries and benefits are included as part of the Police Officer classification salary and benefits. The FY 2026/27 estimated fiscal impact for the 2026 annual CMCEA compensation studies is $275,316. The fiscal impact of the tentative agreements and additional adjustments, including the annual CMCEA compensation studies were included in the FY 2026/27 Adopted Budget. The Fiscal Year 2027/28 impact is approximately $3.7 $3.6 million.
If you have any questions, please let me know.
CC: Cecilia Gallardo-Daly, City Manager
Alma Reyes, Assistant City Manager
Kimberly Hall-Barlow, City Attorney
Brenda Green, City Clerk
Kasama Lee, Human Resources Manager
CITY OF COSTA MESA
HUMAN RESOURCES / RISK MANAGEMENT
SUPPLEMENTAL MEMORANDUM
TO: THE HONORABLE CITY COUNCIL
FROM: KASAMA LEE, HUMAN RESOURCES MANAGER
DATE: AUGUST 31, 2026
SUBJECT: AGENDA ITEM NO. NB -1: ADOPTION OF THE AGREEMENTS FOR
SUCCESSOR MEMORANDA OF UNDERSTANDING (MOU) BETWEEN
THE CITY OF COSTA MESA (CITY) AND THE COSTA MESA POLICE
ASSOCIATION (CMPA), THE COSTA MESA POLICE MANAGEMENT
ASSOCIATION (CMPMA), THE COSTA MESA CITY EMPLOYEES
ASSOCIATION (CMCEA) AND THE CONFIDENTIAL UNIT AND THE
ADOPTION OF ACCOMPANYING SALARY RESOLUTIONS, AND
CMCEA ANNUAL COMPENSATIONS UPDATE
For Agenda Item No. NB-1, the following corrections were made to the salary resolution:
• CMCEA Resolution Effective July 1, 2027 (Attachment 7) o Correction to the Permit Processing Specialist salary range
Original:
Corrected:
o Correction to the Senior Engineer salary range
Original:
Corrected:
If you have any questions, please let me know.
c. Cecilia Gallardo-Daly, City Manager
Alma Reyes, Assistant City Manager
Kimberly Hall-Barlow, City Attorney
Brenda Green, City Clerk