Agenda packet — Cypress City Council, June 13, 2022 (part 1 of 2)

AMENDED AGENDA

REGULAR MEETING

CYPRESS CITY COUNCIL
June 13, 2022
6:00 P.M.
www.cypressca.org Council Chambers
5275 Orange Avenue
Cypress, California
NOTICE
Pursuant to Government Code Section 54953(b), this Regular City Council Meeting includes teleconference participation by:

Mayor Pro Tem Anne Hertz-Mallari from - Summercamp, 70 Lake Avenue, Oak Bluffs, MA 02557

AGENDA AMENDMENT
Agenda Item No. 9 - Resolution attachment was updated to correct a typographical error.

PUBLIC PARTICIPATION
Members of the public may participate in this meeting as follows:

1. Attend In-Person. First-come, first-served seating is available in the Council Chambers. Face coverings are strongly recommended and all in-person attendees must be free of any symptoms associated with COVID-19.

2. Attend Virtually via Webinar. This option provides the ability to provide live public comments during Oral Communications or Public Hearings and view slideshow presentations. Please register at https://attendee.gotowebinar.com/register/327607609640058383 to receive an email containing a link to join the webinar. Advance registration is recommended.

3. Watch the Meeting. The City Council meeting can be viewed live on Spectrum Cable Channel 36 or on the City's website at www.cypressca.org/watchlive.

4. Listen to the Meeting. The public may participate via the listen-only teleconference mode by calling (415) 655-0052 and entering Access Code 679-405-427 when prompted. No registration or audio pin is necessary.

5. Submit Public Comments Prior to the Meeting. The public may submit comments via email to [email protected]. Comments submitted by 3:00 p.m. on June 13, 2022 will be added to the City Council agenda as a Consent Calendar item.

CALL TO ORDER
6:00 P.M.

Executive Board Room

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District and Cypress Recreation and Community Services Foundation Mayor Paulo Morales
Mayor Pro Tem Anne Hertz-Mallari
Council Member Frances Marquez
Council Member Scott Minikus
Council Member Jon Peat
ORAL COMMUNICATIONS (Three minutes per speaker, unless extended by the City Council) The public may address the City Council on matters appearing on the Closed Session agenda. Although Council Members may provide brief responses, the City Council may not discuss or take action on items that are not on its agenda.

If you would like to address the City Council in person, please complete a Speaker's Card. If you would like to address the City Council via the meeting webinar, please click the 'hand raise' button, unmute your microphone and wait for the Mayor or City Clerk to call on you. = Hand Raise = Unmute
Speakers providing comments in person will be called first. Speakers are requested to limit their comments to no more than three minutes.

Alternatively, comments may be submitted to [email protected] prior to 3:00 p.m. on June 13, 2022. All comments submitted via email prior to the deadline will be added to the agenda as a Consent Calendar item.

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Youngsma, et al. v. Cypress School District, et al.

Case No. 30-2021-01220176-CU-EI-CXC
Orange County Superior Court
CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Agency Negotiators: City Manager and Director of Finance and Administrative Services Employee Group: Cypress Police Officers Association

RECONVENE
June 13, 2022 | Page 2

RECONVENE
7:00 P.M.

Council Chambers

PLEDGE OF ALLEGIANCE
INVOCATION Neighborhood Church
The City Council does not endorse the content of the invocation and does not endorse the invocational speaker’s particular faith, belief and/or religious denomination. The City Council has an established neutral policy for selecting and scheduling invocational speakers. The City Council’s policy on invocations is available from the City Clerk.

REPORT OF WORKSHOP AGENDA / CLOSED SESSION
City Manager/City Attorney

PRESENTATIONS
Recognition of Outgoing Commissioners
School Resource Officer Program Update
Retirements of Maintenance Superintendent Kirk Streets and Dispatcher Cheryl Austin Introduction of New City Employees
ORAL COMMUNICATIONS (Limited to 30 minutes – three minutes per speaker, unless extended by the City Council)
The public may address the City Council on any matters prior to any action taken on the agenda. Although Council Members may provide brief responses, the City Council may not discuss or take action on items that are not on its agenda.

If you would like to address the City Council in person, please complete a Speaker's Card. If you would like to address the City Council via the meeting webinar, please click the 'hand raise' button, unmute your microphone and wait for the Mayor or City Clerk to call on you. = Hand Raise = Unmute
June 13, 2022 | Page 3
Speakers providing comments in person will be called first. Speakers are requested to limit their comments to no more than three minutes.

PUBLIC HEARINGS
Public comments – five minutes per speaker, unless extended by the City Council.

If you would like to provide comments on a Public Hearing item in person, please complete a Speaker's Card available at the podium. If you would like to provide comments on a Public Hearing item via the meeting webinar, please click the 'hand raise' button, unmute your microphone and wait for the Mayor or City Clerk to call on you. = Hand Raise = Unmute
Speakers providing comments in person will be called first. Members of the public providing comments via webinar are encouraged to also submit a written copy of their comments to [email protected] prior to 3:00 p.m. on June 13, 2022. This will ensure your comments are included in the public hearing record should you experience any technical difficulties during the public hearing.

Council Members should disclose communications with anyone relevant to a Public Hearing item.

1. Introduce an Ordinance Amending Section 12 (Density Bonus), Section 5 (Residential Zoning Districts), Subsection 3.11.050 (Allowed Projections Into Required Setback Areas), Subsection 3.17.020(B) (Accessory Structures Used For Living Purposes) Subsection 3.17.200 (Accessory Dwelling Units), Subsection

4.18.040 (Authority for Land Use and Zoning Decisions), Section 31 (Definitions), and Creating a New Subsection 4.19.200 (Reasonable Accommodation) of the Zoning Ordinance
Prepared by: Alicia Velasco, Planning Director
Recommendation:

1. Approve the first reading, by title only, of an Ordinance amending Section 12 (Density Bonus), Section 5 (Residential Zoning Districts), Subsection 3.11.050 (Allowed Projections Into Required Setback Areas), Subsection 3.17.020(B) (Accessory Structures Used For Living Purposes) Subsection 3.17.200 (Accessory Dwelling Units), Subsection 4.18.040 (Authority for Land Use and Zoning Decisions), Section 31 (Definitions), and creating a new Subsection 4.19.200 (Reasonable Accommodation) of Appendix I of the Municipal Code; and

2. Find the action exempt from the California Environmental Quality Act.

June 13, 2022 | Page 4

2. Approve Conditional Use Permit No. 2022-01 to Permit a New Self-Service Car Wash at 5890 Lincoln Avenue
Prepared by: Alicia Velasco, Planning Director
Recommendation: Adopt a Resolution approving Conditional Use Permit No. 2022-01, with conditions, and confirm the project is exempt from California Environmental Quality Act requirements.

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item.

3. Receive and File Public Comments Submitted for the June 13, 2022 City Council Meeting
Prepared by: Alisha Farnell, City Clerk
Recommendation: Receive and file submitted public comments.

4. Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading

5. Approve Minutes - Meetings of April 25, 2022, May 9, 2022, May 11, 2022 and May 12, 2022
Prepared by: Alisha Farnell, City Clerk
Recommendation: Approve as submitted.

6. Accept Organic Recycling Local Assistance Grant
Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Accept a CalRecycle Organic Recycling Local Assistance Grant; and

2. Increase estimated revenues by $69,242 in the City's General Fund.

7. Adopt Annual Statement of Investment Policy
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation: Adopt a Resolution approving the Annual Statement of Investment Policy.

June 13, 2022 | Page 5

8. Adopt the Fiscal Year 2022-23 Appropriations Limit
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation: Adopt a Resolution establishing the City's Fiscal Year 2022-23 appropriations limit.

9. Adopt the Cypress Recreation and Park District's Fiscal Year 2022-23 Appropriations Limit
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation: Adopt a Resolution establishing the Cypress Recreation and Park District's Fiscal Year 2022-23 appropriations limit.

10. Adopt Resolutions to Hold a General Municipal Election on November 8, 2022 Prepared by: Alisha Farnell, City Clerk
Recommendation:

1. Adopt a Resolution calling and giving notice of a General Municipal Election on Tuesday, November 8, 2022, for the election of certain officers as required by the City Charter; and

2. Adopt a Resolution requesting the Board of Supervisors of the County of Orange to consolidate a General Municipal Election to be held on Tuesday, November 8, 2022, with the Statewide General Election to be held on the same date pursuant to Elections Code Section 10403; and

3. Adopt a Resolution adopting regulations for candidates for elective office pertaining to candidates statements submitted to the voters at an election to be held on Tuesday, November 8, 2022.

11. Amend On-Call Contract Services Agreement with Communications LAB for Community Outreach and Public Engagement and Approve Three Task Orders Prepared by: Peter Grant, City Manager
Recommendation:

1. Amend the on-call contract services agreement with Communications LAB for community outreach and public engagement; and

2. Approve a Task Order for $12,000 for temporary communications support; and

3. Approve a Task Order for $9,600 for voter outreach efforts; and

4. Approve a Task Order for $60,000 for Recreation and Community Services communications support for FY 2022-23.

June 13, 2022 | Page 6

12. Amend the Senior Transportation Agreement with California Yellow Cab Prepared by: Jeff Draper, Director of Recreation and Community Services Recommendation: Approve an amendment to the Senior Transportation Agreement with California Yellow Cab.

13. Approve an Amendment to Section 21A-15 of the Municipal Code Related to the Disposition of Surplus Supplies and Equipment
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation: Introduce for first reading an Ordinance, by title only, amending Section 21A-15 of the Municipal Code regarding the disposition of surplus supplies and equipment.

14. Approve Expenditures for the Cypress Recreation and Community Services Foundation
Prepared by: Jeff Draper, Director of Recreation and Community Services Recommendation:

1. Authorize expenditures not to exceed $5,000 for the purchase of beverages to be sold at the 2022 Salute to America; and

2. Authorize an expenditure of $2,844.45 to Friends of Cypress Recreation and Parks for reimbursement associated with the 2021 Community Festival; and

3. Authorize the creation of a bank account for the Recreation and Community Services Foundation.

15. Award a contract for HVAC Maintenance and Repair Services Prepared by: Doug Dancs, Director of Public Works
Recommendation: Award a two-year contract to Control Air Enterprises, LLC for Heating, Ventilation and Air Conditioning (HVAC) maintenance and repair services in the amount of $36,676 annually.

16. Receive and File the FY 2022-23 Master Fee Schedule Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation: Receive and file the updated FY 2022-23 Master Fee Schedule which incorporates annual cost-of-living adjustments for City and Park District user fees.

June 13, 2022 | Page 7

17. Receive an Update on the North Orange County Public Safety Collaborative and Accept Award of Funds
Prepared by: Mark Lauderback, Chief of Police
Recommendation:

1. Receive an Update on the North Orange County Public Safety Collaborative; and

2. Accept $118,000 in Board of State and Community Corrections funds allocated to the City of Cypress through the North Orange County Public Safety Collaborative; and

3. Accept $150,000 in Board of State and Community Corrections funds allocated to the City of Cypress and $150,000 allocated to the City of La Palma through the North Orange County Public Safety Collaborative

18. Approve Register of Warrants, Transfers, and Wires Issued for the Period of May 7, 2022 through June 3, 2022
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation: Approve the attached payment register summarized below for the period of May 7, 2022 through June 3, 2022:

Electronic Funds Transfers 11046 through 11191
Warrants 59462 through 59673
Payroll Transfers W1475 through W1476

NEW BUSINESS

19. Adopt the Fiscal Year 2022-23 Budget for the City of Cypress and the Cypress Recreation and Park District
Prepared by: Matt Burton, Director of Finance and Administrative Services Recommendation:

1. Adopt a Resolution approving the Fiscal Year 2022-23 City Budget; and

2. Adopt a Resolution approving the Fiscal Year 2022-23 Recreation and Park District Budget.

20. Adopt the Seven-Year (FY 2022-23 to FY 2028-29) Capital Improvement Program Prepared by: Doug Dancs, Director of Public Works
Recommendation:

1. Determine the Capital Improvement Program is consistent with the General Plan; and

2. Adopt a Resolution approving the Seven-Year CIP for FY 2022-23 to FY 2028-29.

June 13, 2022 | Page 8

21. Approve a Contract Services Agreement with CASC Engineering and Consulting and a Task Order with LSA and Associates for the Business Parks Modernization and Integration Project
Prepared by: Alicia Velasco, Planning Director
Recommendation:

1. Approve a contract services agreement with CASC Engineering and Consulting for the modernization and integration of the City’s Business Park Specific Plans in the amount of $199,916; and

2. Approve a task order for LSA Associates for the preparation of an Initial Study and Mitigated Declaration for $60,300; and

3. Appropriate $60,300 of Pandemic Recovery Plan set-asides in the General Fund for the Initial Study and Mitigated Negative Declaration.

22. Approve the Electronic Communication Policy
Prepared by: Fred Galante, City Attorney
Recommendation: Approve the Electronic Communication Policy.

23. Receive an Update on the Cypress Citizens Academy
Prepared by: Peter Grant, City Manager
Recommendation: Receive an update on the Cypress Citizens Academy.

ORAL COMMUNICATIONS (Five minutes per speaker, unless extended by the City Council) The public may address the City Council on any matters prior to any action taken on the agenda. Although Council Members may provide brief responses, the City Council may not discuss or take action on items that are not on its agenda.

COUNCIL MEMBER REPORTS AND REMARKS
June 13, 2022 | Page 9

COUNCIL MEMBER REPORTS AND REMARKS

CITY MANAGER REMARKS

ADJOURNMENT
The next meeting will be an adjourned Regular Meeting, to be held on Monday, June 27, 2022, beginning at 5:30 p.m. in the Executive Board Room.

I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 10th day of June, 2022.

________________________________
Alisha Farnell, City Clerk
In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this meeting, you should contact the City Clerk at (714) 229-6685 at least 72 hours prior to the meeting to enable the City to make reasonable arrangements to assure accessibility to this meeting.

June 13, 2022 | Page 10
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 1.

FROM: Alicia Velasco, Planning Director
DATE: 06/13/2022
SUBJECT: Introduce an Ordinance Amending Section 12 (Density Bonus), Section 5 (Residential Zoning Districts), Subsection 3.11.050 (Allowed Projections Into Required Setback Areas), Subsection 3.17.020(B) (Accessory Structures Used For Living Purposes) Subsection 3.17.200 (Accessory Dwelling Units), Subsection 4.18.040 (Authority for Land Use and Zoning Decisions), Section 31 (Definitions), and Creating a New Subsection

4.19.200 (Reasonable Accommodation) of the Zoning Ordinance

RECOMMENDATION

2. Find the action exempt from the California Environmental Quality Act.

DISCUSSION
This item was continued at the May 23, 2022 City Council meeting.

The 2021-29 Housing Element contains State-mandated programs to remove constraints to housing development, including updating the Zoning Ordinance to comply with recent changes in State law. In November 2021, the City Council adopted updated emergency shelter provisions as a first step in this effort. The recommended amendments address State accessory dwelling units (previously identified as second units) regulations, density bonuses, and fair housing laws providing reasonable accommodations for disabled persons.

Accessory Dwelling Units
New State laws (AB 68, AB 587, AB 881, and SB 13) invalidated the City’s current ordinance and created permitting requirements for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU). ADUs contain complete independent living facilities (including a kitchen and bathroom) and may be attached to the primary dwelling, detached, or converted from an existing accessory structure, while JADUs must be contained within the walls of the primary dwelling and may share bathroom facilities with the primary dwelling. The City has permitted 13 ADUs and JADUs since the new State laws took effect in 2020. The ordinance complies with State law, including:

A single-family lot is permitted an ADU, JADU, or both, if all the standards are met JADUs are limited to 500 square feet
An ADU may be attached, detached, or converted from a garage or other accessory structure
Replacement parking is not required if a garage is converted to an ADU New construction ADUs are limited to 16 feet in height
Multi-family properties can construct one ADU per four units on a property (in addition to what is permitted on single-family properties)
Density Bonus
The density bonus ordinance grants increased residential density and/or other incentives as an incentive for the construction of affordable units. State density bonus law (Government Code Sections 65915-65918) establishes density bonuses based on the number and type of affordable units and has changed significantly since the City Council last updated its ordinance in 2010. The City expects more new State-required changes to the recommenced ordinance and to future-proof it, the ordinance references the Government Code rather than the quoting it. As required by the State, the ordinance:

Includes procedures for requesting a density bonus, incentives and concessions, waiver of development standards, and parking requirement reductions Requires affordable units be similar size and quality as market rate units and ensures their development before/concurrent with market rate units Requires an Affordable Housing Agreement be recorded against the property to ensure affordability remains in place for the specified term
Requires ongoing monitoring and enforcement to ensure affordable units are occupied by qualifying households
Reasonable Accommodation
The Federal Fair Housing Act and the California Fair Employment and Housing Act require cities to provide flexibility in zoning and building regulations to give persons with disabilities equal access to housing. A common example of reasonable accommodation is a reduced front yard setback to accommodate a wheelchair ramp. An addition to the Zoning Code (Subsection 4.19.200) establishes procedures for considering reasonable accommodation requests, including standards that the accommodation will not impose an undue financial or administrative burden on the City and will not require a fundamental alteration in the nature of the City’s zoning or building regulations or procedures. Since 2020, the City has processed one reasonable accommodation request (for a wheelchair ramp).

Summary
The recommended ordinance is required to implement the 2021-29 Housing Element and comply with State law. The ordinance updates terms and definitions related to ADUs, density bonuses, and reasonable accommodations. Should the City Council not approve the recommended ordinance, the City remains obligated by these requirements in State law.

The public hearing notice for this item was posted on May 13, 2022, as required by the Municipal Code. Any comments received will be attached.

BUDGET IMPACT
None.

LEGAL REVIEW
The attached Ordinance was reviewed and approved by the City Attorney.

APPROVED BY: Peter Grant, City Manager
Attachments
Ordinance
Redlined Ordinance
CEQA Exemption
ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, AMENDING SUBSECTION 2.05.030 (RESIDENTIAL

ZONING DISTRICT LAND USES AND PERMIT REQUIREMENTS),
SUBSECTION 2.05.050 (RESIDENTIAL OFF-STREET PARKING
REQUIREMENTS), SUBSECTION 3.11.050 (ALLOWED PROJECTIONS INTO REQUIRED SETBACK AREAS), SECTION 12 (DENSITY BONUS), SUBSECTION 3.17.020(B) (ACCESSORY STRUCTURES USED FOR
LIVING PURPOSES), SUBSECTION 3.17.200 (ACCESSORY DWELLING UNITS), SUBSECTION 4.18.040 (AUTHORITY FOR LAND USE AND ZONING DECISIONS), AND SECTION 31 (DEFINITIONS) AND
CREATING A NEW SUBSECTION 4.19.200 (REASONABLE

ACCOMMODATION) OF APPENDIX I OF THE CYPRESS MUNICIPAL

CODE AND FINDING THE ACTION EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT.

WHEREAS, Sections 65915-65918 of Title 7, Division 1, Chapter 4.3 of the Government Code contains regulations pertaining to density bonuses and other incentives for the development of affordable housing; and WHEREAS, Sections 65852.2 and 65852.22 of Title 7, Division 1, Chapter 4 of the Government Code contains regulations pertaining accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”) and limits a local authority’s scope of regulation upon ADUs and JADUs; and
WHEREAS, the federal Fair Housing Act and the California Fair Employment and Housing Act (“Fair Housing Laws”) provide for reasonable accommodation in the application of zoning laws, building code, and other land use regulation, policies, and procedures for persons with disabilities seeking equal access to housing; and WHEREAS, the City Council desires to update the City’s regulations so that it is consistent with State law and Fair Housing Laws; and
WHEREAS, the City Council finds that the Ordinance is consistent with the goals, policies, and objectives of the General Plan. Housing Element Goal HOU-5 is to “mitigate any potential governmental constraints to housing production and affordability”. The Ordinance furthers this goal by ensuring that the City’s zoning regulations are consistent with State laws intended to facilitate and incentivize the development of affordable housing and accessory dwelling units. Housing Element Goal HOU-6 is to “promote equal opportunity for all residents to reside in the housing of their choice”. The Ordinance is consistent with this goal in that it establishes procedures for persons with disabilities to request reasonable accommodations that will allow them to reside in the housing of their choice; and
WHEREAS, on May 23, 2022, the City Council held a duly noticed public hearing and considered testimony on the Ordinance; and

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the above Recitals are true and correct and are incorporated herein as findings of the City Council.

SECTION 2. The alphabetical list of land uses in Table 2-2 (Allowable Uses and Permit Requirements for Residential Zoning Districts) of Subsection 2.05.030 of Appendix I (Zoning) of the Cypress Municipal Code is hereby amended as follows, with all land uses renumerated alphabetically (strikethrough represents deleted language while underline represents added language):

TABLE 2-2

ALLOWABLE USES AND PERMIT REQUIREMENTS

FOR RESIDENTIAL ZONING DISTRICTS
Land Use Permit Requirement by District
RS-15000 RS-6000 RS-5000 RM-15 RM-20 MHP-20 See Section Residential
Accessory Dwelling Units P P P P P 3.17.200
Granny Units C C C — — — 6.31.020(G)
Second Dwelling Units not
more than 640 sq. ft. P P P — — — 3.17.200
Second Dwelling Units more
than 640 sq. ft. C C — — — — 3.17.200
SECTION 3. The alphabetical list of land uses in Table 2-4 (Residential Zoning District Parking Requirements) of Subsection 2.05.050 of Appendix I (Zoning) of the Cypress Municipal Code is hereby amended as follows, with all land uses renumerated alphabetically (strikethrough represents deleted language while underline represents added language):

TABLE 2-4

RESIDENTIAL ZONING DISTRICT PARKING REQUIREMENTS
Residential Uses Vehicle Spaces Required
Residential Land Uses
Accessory Dwelling Units See Section 3.17.200(F)(5)
Second dwelling units
1 space per bedroom in addition to the spaces required
for the single-family dwelling unit on the site. If the second dwelling unit is conditionally approved pursuant to Section 3.17.200(I), the required parking spaces shall be enclosed.

SECTION 4. Table 3.1 (Allowed Projections into Required Setback Areas, Residential Zoning Districts) of Subsection 3.11.050 of Appendix I (Zoning) of the Cypress Municipal Code is hereby amended as follows (strikethrough represents deleted language while underline represents added language):

TABLE 3.1

ALLOWED PROJECTIONS INTO REQUIRED SETBACK AREAS

RESIDENTIAL ZONING DISTRICTS
Feature Front Setback Rear Setback Side Setback
Architectural adornments such as
cornices, eaves, sills, etc.
4 feet 4 feet Not more than one-half
of the required side
setback
Balconies (a) 6 feet 6 feet 6 feet
Bay window or similar feature which
does not extend the structure’s
foundation
4 feet 4 feet Not more than one-half
of the required side
setback
Canopies, Pop up Not allowed Not allowed Not allowed
Chimneys 4 feet 4 feet Not more than one-half
of the required side
setback
Fire escapes Not allowed No restriction No restriction
Canopies, gazebos, patio covers —
open
Not allowed Within 5 feet of the
property line.

Overhanging and
cantilevered roofs and
eaves may project to
within 2 feet 6 inches
from the rear property
line.

Within 5 feet of the
property line.

Overhanging and
cantilevered roofs and
eaves may project to
within 2 feet 6 inches
from the side property
line.

Pool motors and similar equipment Not allowed May be located anywhere within rear
setback.

May be located
anywhere within side
setback. Refer to
additional requirements
in Subsection 3.17.200
(Second Dwelling Units)
Porches 4 feet 4 feet Not more than one-half
of the required side yard
setback
Roofs of accessory structures (b) Not allowed No closer than 5 feet to the lot line
No closer than 5 feet to
the lot line, except for
units developed on zero
lot line parcels
Notes:
(a) Balconies shall be limited in width to six feet. Second floor decks other than balconies, such as (e.g., sundecks) are prohibited.
(b) Roofs shall be no more than 10 feet in height.

SECTION 5. Section 12 (Density Bonus) of Appendix I (Zoning) of the Cypress Municipal Code is hereby deleted in its entirety and replaced with a new Section 12 (Density Bonus), which shall read as follows:

SECTION 12. DENSITY BONUS

3.12.010. Purpose.

The purpose of this section is to provide incentives for the production of affordable housing in accordance with California Government Code Sections 65915-65918 (“State Density Bonus Law”).

3.12.020. Definitions.

The definitions found in State Density Bonus Law shall apply to the terms contained in this section.

3.12.030. Applicability.

This section applies to a “housing development”, as defined in Government Code Section 65915(i), or an “eligible housing development”, as defined in Government Code Section 65917.2, when an applicant proposes a density increase above the maximum allowable density and/or other regulatory incentives and concessions in exchange for reserving a portion of the units for lower-income, moderate-income, or senior households, as provided in this section and State Density Bonus Law.

3.12.040. Application Requirements
A. Required submittals. In addition to the application filing requirements established in Section 18 (Applications, Processing, and Fees), the following information shall be provided by the applicant on a form supplied by the Community Development Department:

1. How the proposed project will satisfy the eligibility requirements of Government Code Section 65915 or 65917.2.

2. The requested density bonus pursuant to subsection 3.12.050 (Density Bonus).

3. Any incentives and concessions that are sought under Government Code Section 65915(d). The applicant shall provide reasonable documentation to show that any requested incentive or concession will result in identifiable and actual cost reductions to provide for affordable housing costs or rents.

4. Any waivers and reductions that are sought under Government Code Section 65915(e). The applicant shall provide reasonable documentation that the development standard(s) for which the waiver is requested will have the effect of physically precluding the development at the densities or with the concessions or incentives permitted by State Density Bonus Law.

5. Any requested parking reductions sought under Government Code Section 65915(p).

6. Documentation of how the project will comply with Government Code Section 65915(c)(3) pertaining to replacement units.

B. Fee. Payment of a fee in an amount set by resolution of the City Council, pursuant to Section 18 of the Cypress Zoning Ordinance.

C. Concurrent review. Density bonus requests shall be filed concurrently with the other planning permit application(s) required for the development. The density bonus request shall be processed concurrently with the underlying planning permit or entitlement for the project.

3.12.050. Density Bonus.

A. Calculation. Density bonuses shall be calculated as set forth in Government Code Section 65915 and 65917.2.

1. In determining the total number of units to be granted, each component of any density calculation, including base density and bonus density, resulting in fractional units shall be separately rounded up to the next whole number.

2. When calculating the number of affordable units needed for a given density bonus, any fractions of affordable units shall be rounded up to the next whole number.

3. The density bonus units shall not be included in determining the number of affordable units required to qualify a housing development for a density bonus pursuant to State Density Bonus Law.

B. Each housing development is entitled to only one density bonus. If a housing development qualifies for a density bonus under more than one income category or additionally as senior housing or housing intended to serve transitional foster youth, disabled veterans, or homeless persons, or other category qualifying for a density bonus under the State Density Bonus Law, the applicant shall select the category under which the density bonus is granted.

C. The applicant may elect to receive a density bonus that is less than the development is entitled to under State Density Bonus Law, including a density bonus of zero. In such cases, the applicant retains their entitlement to incentives, concessions, and parking reductions as provided in State Density Bonus Law.

3.12.060. Incentives and Concessions.

A. The applicant may request up to the number of incentives and concessions for which the project is entitled pursuant to Government Code Section 65915(d)(2).

B. The City shall grant requested incentives and concessions unless a specified finding is made as set forth in Government Code Section 65915(d)(1). However, the City is not required to deny a proposed incentive or concession solely because it can make a finding under Government Code Section 65915(d)(1).

3.12.070. Waivers and Reductions.

A. An applicant may submit to the City a proposal for waivers and reductions of development standards that physically prevent construction of a housing development and density bonus units meeting the criteria of Government Code Section 65915(b).

B. The City may deny waivers and reductions for the reasons set forth in Government Code Section 65915(e)(1).

3.12.080. Affordable Housing Requirements
A. Maximum affordable housing costs. The maximum total housing costs paid by a qualifying household, adjusted for household size appropriate for the unit, shall be pursuant to Health and Safety Code Sections 50052.5 and 50053.

B. Term of affordability. The term of affordability for affordable units shall be at least the period of time required by Government Code Section 65915(c).

C. Sale and resale of owner-occupied units. Sale and resale of owner-occupied units is subject to the requirements of Government Code Section 65915(c)(2).

D. Development Standards.

1. All affordable units shall be reasonably dispersed throughout the housing development.

2. Affordable units shall be made available for occupancy concurrently with or prior to the market rate units in the development. In the event the City approves a phased project, the affordable units shall be provided proportionately within each phase.

3. Affordable units shall be comparable with the market rate units in terms of design, construction quality, exterior appearance, exterior finished quality, and size.

4. The bedroom mix of the affordable units shall be equivalent to the bedroom mix of the market rate units of the development, unless otherwise approved by the City.

5. Comparable amenities. Residents of affordable units shall have equal access to project amenities available to other residents, including, but not limited to, access to recreational, parking, and storage facilities and interior amenities such as microwaves and dishwashers.

6. Parking. Unless the City’s adopted parking standards will result in fewer parking spaces, the applicant may request a reduction in parking standards pursuant to Government Code Section 65915(p).

3.12.090. Affordable Housing Agreement and Senior Housing Agreement.

A. Affordable Housing Agreement. Applicants that have been conditionally granted a density bonus, incentives and concessions, and/or waivers for the provision of affordable housing shall enter into an Affordable Housing Agreement with the City in a form approved by the City Attorney. The Affordable Housing Agreement shall, at a minimum, include the following:

1. The total number of units and the number of units that will be made affordable;

2. The size, bedroom count, and location of each affordable unit;

3. The income levels of the affordable units and an acknowledgement that the City will verify tenant and home buyer incomes to maintain the affordability of the units;

4. The term of affordability for the units, which shall not be less than the period of time required by Government Code Section 65915;

5. The approved density bonus, incentives, concessions, waivers, and/or parking reductions, if any;

6. Schedule of development for all units; and

7. An affirmative fair marketing plan that is approved by the City to ensure advertising of the availability of the affordable units to a wide spectrum of City residents.

B. Senior Housing Agreement. Applicants that have been conditionally granted a density bonus, incentives and concessions, and/or waiver for the provision of market rate senior housing shall enter into a Senior Housing Agreement with the City in a form approved by the City Attorney. The Senior Housing Agreement shall require the development to operate as a senior citizen housing development pursuant to Government Code Section 65915(b)(1)(C). The Senior Housing Agreement shall also include the following:

1. Approved density bonus, incentives, concessions, waivers, and/or parking reductions, if any; and

2. Schedule of development for all units.

C. Recordation. The executed Affordable Housing Agreement or Senior Housing Agreement shall be recorded against the housing development prior to final map approval or, where a map is not being processed, prior to the issuance of building permits. The Affordable Housing Agreement or Senior Housing Agreement shall bind all future owners and successors in interest for the term of years specified therein.

3.12.100. Enforcement and Monitoring.

A. The provisions of this section shall apply to all developers and their agents, successors, and assigns proposing a housing development governed by this section.

No building permit or certificate of occupancy shall be issued, nor any entitlement granted, for a project receiving a density bonus, incentive, concession, or waiver until it meets the requirements of this section.

B. The director shall establish administration regulations which contain guidelines and procedures for the effective implementation of this section. The administrative regulations may include fees for monitoring, reports, transactions, and other administrative activities to the extent allowable by State Density Bonus Law. All fees shall be approved by the City Council in an amount set by resolution, pursuant to Section 18 of the Cypress Zoning Ordinance.

C. All affordable units shall be rented or owned in accordance with this section and the administrative guidelines. Any individual who sells or rents an affordable unit in violation of the provisions of this section shall be required to forfeit all monetary amounts so obtained.

D. The City Attorney shall be authorized to enforce the provisions of this section and all Affordable Housing Agreements, Senior Housing Agreements, covenants, resale restrictions, promissory notes, deeds of trust, and other requirements placed on affordable units by civil action and any other proceeding or method permitted by law.

3.12.110. Interpretation.

If any portion of this subsection conflicts with State Density Bonus Law or other applicable state law, state law shall supersede this section. Any ambiguities in this section shall be interpreted to be consistent with State Density Bonus Law.

SECTION 6. Subsection 3.17.020(B) of Appendix I (Zoning) of the Cypress Municipal Code is hereby amended as follows (strikethrough represents deleted language while underline represents added language):

B. Accessory structures used for living purposes. An accessory structure used for living purposes shall meet the requirements of subsection 3.17.200 (Second Accessory dwelling units).

SECTION 7. Subsection 3.17.200 (Second dwelling units) of Appendix I (Zoning) of the Cypress Municipal Code is hereby deleted in its entirety and replaced with a new Subsection 3.17.200 (Accessory dwelling units), which shall read as follows:

3.17.200. Accessory dwelling units.

A. Purpose. The purpose of this subsection is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with Government Code Sections 65852.2 and 65852.22.

B. Effect of conforming. An ADU or JADU that conforms to the provisions of this subsection shall:

1. Be deemed an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located;

2. Be deemed a residential use that is consistent with the existing general plan and zoning designation for the lot upon which it is located; and

3. Not be considered in the application of any local ordinance, policy, or program to limit residential growth.

C. Application and review procedures.

1. Review. Applications for ADUs or JADUs shall be considered ministerially through the plan check process. The director or their designee shall consider and approve or disapprove a complete application for an ADU or JADU within 60 days from the date the City receives a complete application. Review is limited to whether the proposed ADU or JADU complies with the requirements of this subsection. If the application to create an ADU or JADU is submitted concurrently with an application to create a new single-family dwelling on the lot, the director may delay acting upon the application for the ADU or JADU until the City acts on the application to create the new single-family dwelling.

2. Nonconformities. The correction of nonconforming zoning conditions shall not be required for the creation of an ADU or JADU.

D. Locations permitted.

1. ADUs conforming to the provisions of this subsection may be located on any lot in the City that is zoned to allow single-family or multi-family residential uses and that includes a proposed or existing legally developed single-family or an existing legally developed two-family or multi-family dwelling.

2. JADUs conforming to the provisions of this subsection may be located within a proposed or existing legally developed single-family dwelling on any lot in the City that is zoned to allow single-family residential uses.

3. ADUs and JADUs shall not be permitted on any parcel that has obtained a permit for a two-unit development and urban lot split pursuant to Government Code Sections 65852.21 and 66411.7.

E. Number of ADUs and JADUs permitted.

1. Single-family lots. No more than one (1) ADU and one (1) JADU is permitted on a lot developed or proposed to be developed with a single-family dwelling.

2. Multi-family lots. A lot developed with a two-family or multi-family dwelling shall be permitted either:
a. No more than two (2) detached ADUs; or
b. Up to twenty-five (25) percent of the number of existing multi-family dwelling units within existing multi-family or two-family dwelling structures. The ADUs must be converted from portions of the existing multi-family dwelling structure that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. For the purposes of calculating the number of allowable ADUs, the following shall apply:
i. Fractions shall be rounded down to the next lower whole number of dwelling units, except that at least one (1) ADU shall be allowed. ii. Previously approved ADUs shall not count towards the existing number of multi-family dwelling units.

F. Development standards. Except as modified by this subsection, ADUs and/or JADUs shall conform to the development standards applicable to the lot on which it is located as set forth in the Cypress Zoning Ordinance and/or in an applicable specific plan.

1. Lot area. There shall be no minimum lot area required in order to establish an ADU or JADU.

2. Unit size.
a. ADUs.
i. No ADU shall exceed 1,200 square feet in size.
ii. An attached ADU that is created on a lot with an existing or proposed singlefamily dwelling is further limited to fifty (50) percent of the floor area of the existing or proposed primary dwelling.
iii. An ADU constructed solely through the conversion of an existing building or structure or in the same location and same dimensions as an existing structure shall be limited in size to the existing square footage of the building or structure converted or replaced, except that an expansion of not more than 150 square feet is permitted to accommodate ingress and egress to the ADU only.
iv. The application of requirements related to lot coverage, floor area ratio, or open space may further limit the size of an ADU; however, in no case shall the application of such requirements limit the size of an ADU to less than 800 square feet.
b. JADUs. No JADU shall exceed 500 square feet in size. c. Minimum size. The minimum size of an ADU or JADU shall be at least that of an efficiency unit, as defined in Health and Safety Code Section 17958.1.

3. Setbacks.
a. Minimum setbacks of no less than four (4) feet from the side and rear property lines are required for newly constructed ADUs.
b. The minimum setback from the front property line shall be the same setback requirement that applies to the primary dwelling.
c. For conversion of an existing building or structure or replacement in the same location and same dimensions as an existing structure, no additional setback is required beyond the existing setback, provided it is sufficient for fire and safety.

4. Height.
a. Newly constructed ADUs shall not exceed one (1) story and a height of sixteen (16) feet.
b. ADUs and JADUs converted from an existing building or structure shall not exceed the height of the existing structure.

5. Parking.
a. ADUs. A minimum of one (1) parking space shall be provided for each ADU unless they are not required pursuant to paragraph (5.b) below. The required parking space may be permitted in setback areas or through tandem parking on a driveway.
b. Exceptions. Off-street parking for the ADU is not required in the following instances:
i. The ADU is a studio;
ii. The ADU is located within one-half (1/2) mile walking distance of public transit, as that term is defined in Government Code Section 65852.2; or iii. When parking for the ADU is not required pursuant to Government Code Section 65852.2 (d).
c. JADUs. No parking shall be required for JADUs.
d. No Replacement. When a garage, carport, or covered parking structure is converted or demolished in conjunction with the construction of an ADU or JADU, those off-street parking spaces are not required to be replaced.

6. Kitchens.
a. ADUs. ADUs shall have a kitchen, as required by the Building Code, which shall include a kitchen sink, cooking device, refrigeration, food preparation counter, and storage cabinets.
b. JADUs. JADUs shall include an efficiency kitchen, including a cooking facility with appliances, and a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.

7. Design. Exterior finished materials on the ADU or JADU shall match the exterior finished materials for the primary dwelling unit.

8. Fire sprinklers. Fire sprinklers are required in an ADU only if sprinklers are required in the primary residence.

9. Exterior access. An attached or converted ADU or JADU on a single-family lot must have independent exterior access that is separate from the access to the proposed or existing primary dwelling.

10.Passageway. No passageway shall be required in conjunction with the construction of an ADU and/or JADU. For the purposes of this chapter, "passageway" shall mean a pathway that is unobstructed, clear to the sky, and extends from the right-of-way to one (1) entrance of the ADU and/or JADU.

11.Utilities.
a. ADUs. An ADU may be served by the same water, sewer, and other utility connections serving the primary dwelling on the property, and the installation of a new or separate utility connection directly between an ADU and a utility is not required. However, separate utility connections and meters for ADUs may be installed at the property owner’s option, when permitted by the utility provider, and subject to the payment of all applicable fees. b. JADUs. A JADU shall be served by the same water, sewer, and other utility connections serving the primary dwelling in which it is located, and no separate utility meters shall be permitted for a JADU.

G. Other requirements.

1. No separate conveyance. Except as otherwise provided in Government Code Section 65852.26 or by other applicable laws, an ADU or JADU may be rented separate from the primary residence(s), but may not be sold or otherwise conveyed separate from the primary residence(s). A lot shall not be subdivided in any manner which would authorize such separate sale or ownership.

2. Short-term rental prohibited. Rental of an ADU or JADU for a term of thirty (30) days or less is prohibited.

3. Owner occupancy requirements.
a. ADUs.
i. For any ADU created on or after January 1, 2020, but before January 1, 2025, owner occupancy of the primary dwelling or ADU is not required. ii. For all ADUs created on or after January 1, 2025, an owner of record of the lot upon which the ADU is located must occupy either the primary dwelling or ADU as their principal residence.
b. JADUs. An owner of record of the lot upon which a JADU is located must occupy either the JADU or the remaining portion of the primary single-family dwelling as their principal residence. However, the owner occupancy requirement does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.

4. Deed restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction shall be recorded against the title of the property in the county recorder’s office and a copy filed with the Community Development Department. The deed restriction shall run with the land and bind all future owners. The form of the deed restriction will be provided by the City and shall include the following:
a. The ADU or JADU may not be sold separately from the primary dwelling(s). b. The ADU or JADU is restricted to the approved size and to other attributes allowed by this subsection, including owner occupancy restrictions and the prohibition on short-term rental.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may not be modified or terminated without the prior written consent of the director.
e. The deed restriction is enforceable by the director or their designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.

5. Impact fees.
a. No impact fee is required for an ADU that is less than seven hundred fifty (750) square feet in size.
b. Any impact fee that is required for an ADU that is seven hundred fifty (750) square feet or greater in size shall be charged proportionately in relation to the square footage of the primary dwelling unit (e.g., the floor area of the primary dwelling, divided by the floor area of the ADU, times the typical fee amount charged for a new dwelling).
c. For purposes of this section, “impact fee” does not include any connection fee or capacity charge for water or sewer service.

SECTION 8. A new Subsection 4.19.100 (Reasonable Accommodation) of Appendix I (Zoning) of the Cypress Municipal Code is hereby added as follows:

4.19.100. Reasonable Accommodation.

D. Purpose of subsection. The purpose of this subsection is to provide a procedure to request reasonable accommodation for persons with disabilities seeking equal access to housing under the federal Fair Housing Act and the California Fair Employment and Housing Act (collectively, the “Fair Housing Laws”) in the application of zoning laws, building codes, and other land use regulations, policies, and procedures.

E. Applicability.

1. A request for reasonable accommodation may be made by any person with a disability, their representative, or a developer or provider of housing for the disabled, when the application of a zoning law, building code provision, or other land use regulation, policy, or practice denies a person equal access to housing opportunities. A person with a disability is a person who has a physical or mental impairment that limits or substantially limits one or more major life activities, anyone who is regarded as having such impairment, or anyone who has a record of such impairment, as those terms are defined in the Fair Housing Laws.

2. A request for reasonable accommodation may include a modification or exception to the rules, standards, and practices for the siting, development, and/or use of housing or housing related facilities that that is necessary to afford an individual with a disability an equal opportunity to housing. Requests for reasonable accommodation shall be made in the manner prescribed by this subsection and shall be approved only for the benefit of one or more individuals with a disability.

3. Where the improvements or modifications approved through a reasonable accommodation would generally require a variance, a variance shall not be required.

F. Application Requirements.

1. Required submittals. In addition to the application filing requirements established in Section 18 (Applications, Processing, and Fees), the following information shall be provided by the applicant on a form supplied by the Community Development Department:
a. Documentation that the applicant is an individual with a disability, applying on behalf of one or more individuals with a disability, or a developer or provider of housing for one or more individuals with a disability. Documentation may include a letter from a medical doctor or other licensed healthcare professional, a disabled license, or any other appropriate evidence;
b. The specific code section, regulation, policy or practice from which relief is sought and an explanation of why it is preventing, or will prevent, the use and enjoyment of the subject property by one or more individuals with a disability; c. The specific exception or modification requested and an explanation of why it is necessary to provide one or more individuals with a disability equal access to housing;
d. Verification that the property is or will be the primary residence of the individual(s) for whom the reasonable accommodation is requested; and e. Any other information that the director reasonably concludes is necessary to make the findings required by this subsection, consistent with Fair Housing Laws.

2. Other discretionary permits. If the project for which the request for reasonable accommodation is being made also requires some other discretionary approval, then the applicant shall file the application submittal information together with the application for discretionary approval for concurrent review.

3. Fee. No fee shall be required for a request for reasonable accommodation, but if the project requires another permit, then the prescribed fee shall be paid for all other permits.

G. Authority.

1. Director. Requests for reasonable accommodation shall be reviewed by the director, or designee, unless another discretionary approval is sought for which the City Council is the reviewing authority.

2. City Council. Requests for reasonable accommodation shall be reviewed by the City Council when they are submitted for concurrent review with another discretionary land use application for which the City Council is the reviewing authority.

H. Proceedings.

1. Director’s action. For requests reviewed by the director, the director shall issue a written determination within 30 days of the date of receipt of a complete application.

2. City Council action. For requests reviewed by the City Council, the processing procedures of the discretionary land use permit shall govern the joint processing of both the request for reasonable accommodation and the discretionary land use permit.

3. The reviewing authority’s written decision shall set forth the findings in accordance with paragraph F (Findings), any conditions of approval, and notice of the right to appeal, if applicable.

4. Conditions of approval. The reviewing authority may impose any conditions of approval deemed reasonable and necessary to ensure that the reasonable accommodation complies with the findings required by this subsection.

5. Alternative reasonable accommodations. The reviewing authority may approve alternative reasonable accommodations that provide an equivalent level of benefit to the individual(s) with disabilities.

6. Appeals. If the director does not grant the reasonable accommodation request, or if the applicant disagrees with any conditions imposed on the granting of the reasonable accommodation, the applicant may file an appeal to the City Council in compliance with Section 27 (Appeals) including that the appeal be submitted in writing before 5:00 p.m. of the fourteenth (14th) day following the date the decision was rendered by the director. Decisions on reasonable accommodation requests made by the City Council are final.

7. A reasonable accommodation is granted to an individual(s) and shall not run with the land. If the persons for which the accommodation were granted vacate the residence, the reasonable accommodation shall remain in effect only if the director determines that:
a. The modification is physically integrated on the property and cannot feasibly be removed or altered; or
b. The accommodation is necessary to give another disabled individual an equal opportunity to enjoy the dwelling. The director may request the applicant or their successor in interest to the property to provide documentation that subsequent occupants are persons with disabilities. Failure to provide such documentation within thirty (30) days of the date of a written request by the City shall constitute grounds for discontinuance by the City of the previously approved reasonable accommodation.

I. Findings. A request for reasonable accommodation shall be approved, with or without conditions, if the review authority first finds, based upon all the evidence presented, all of the following:

1. The housing which is the subject of the request for reasonable accommodation will be occupied by one or more individuals with disabilities protected under Fair Housing Laws;

2. The reasonable accommodation is necessary to make housing available to one or more individuals with a disability protected under the Fair Housing Laws;

3. The requested accommodation will not impose an undue financial or administrative burden on the City; and

4. The requested accommodation will not require a fundamental alteration in the nature of the City’s zoning or building laws, policies, and/or procedures.

SECTION 9. Subsection 4.18.040 (Authority for land use and zoning decisions) of Appendix I (Zoning) of the Cypress Municipal Code is hereby amended as follows (strikethrough represents deleted language while underline represents added language):

4.18.040. Authority for land use and zoning decisions.

Table 4-1 (Review Authority) identified the city official or authority responsible for reviewing and making decisions on each type of application or land use entitlement required by this zoning ordinance.

TABLE 4-1

REVIEW AUTHORITY
Type of Entitlement or
Decision Applicable Citation Director Council
Adjustments 4.19.050 Approve (1) Appeal
Conditional Use Permits 4.19.070 Recommend (2) Approve
Development Agreements Section 21 Recommend Approve
Design Reviews 4.19.060 Recommend Approve
Director’s Reviews 4.19.030 Approve (3) Appeal (4)
General Plan
Amendments Section 28 Recommend Approve
Home Occupation Permits 4.19.060 Issue Appeal
Interpretations 1.02.020 Issue Appeal
Reasonable
Accommodation 4.19.100 Approve (5) Appeal
Sign Permits Section 15 Issue Appeal
Specific Plans Section 20 Recommend Approve
Temporary Use Permits 4.19.040 Approve Appeal
Variances 4.19.080 Recommend Approve
Zoning Clearances 4.19.020 Issue Appeal
Zoning Map Amendments Section 28 Recommend Approve
Zoning Ordinance
Amendments Section 28 Recommend Approve
Notes:
(1) The director may defer action and refer any permit or approval application to the council for final determination. (2) “Recommend” means that the review authority makes a recommendation to a higher review authority; “Appeal” means that the review authority may consider and decide upon appeals to the decision of an earlier review authority, in compliance with section 27 (Appeals).
(3) All decisions of the director are appealable to council, in compliance with section 27 (Appeals). (4) All decisions of the council are final.
(5) When requests for reasonable accommodation are submitted for concurrent review with another discretionary land use application for which the council is the reviewing authority, the council shall also review the request for reasonable accommodation.

SECTION 10. The alphabetical list of definitions in Section 31 (Definitions) of Appendix I (Zoning) of the Cypress Municipal Code is hereby amended as follows, with the all definitions renumerated alphabetically (strikethrough represents deleted language while underline represents added language):

6.31.020. Definitions of specialized terms and phrases.

D. Definitions, “D.”
Density bonuses. A density bonus, as defined by Government Code § 65915 et seq., is an increased residential density of at least twenty-five (25) percent over the maximum authorized density which is granted to an owner/developer of a housing project agreeing to construct a prescribed percentage of affordable very low and/or low income dwelling units pursuant to Government Code Sections 65915-65918.

Dwelling unit, accessory. An attached or detached residential dwelling unit which provides complete independent living facilities for one (1) or more persons on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same lot as the single-family or multi-family dwelling is or will be situated. An accessory dwelling unit also includes:

1. An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code; and

2. A manufactured home, as defined in Section 18007 of the Health and Safety Code.

Dwelling unit, junior accessory. A unit that is no more than 500 square feet in size and contained entirely within a single-family dwelling. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.

G. Definitions, “G.”
Granny unit. A dwelling unit, either attached to or detached from, a primary residence on a parcel that is zoned for a single-family residence, that is intended for the sole occupancy of one or two (2) adult persons who are sixty-two (62) years of age or over, consistent with Government Code Section 65852.1, as amended from time to time.

The area of floor space of an attached granny unit shall not exceed thirty (30) percent of the existing living area. The area of the floor space of a detached granny unit shall not exceed one thousand two hundred (1,200) square feet.

S. Definitions, “S.”
Second dwelling unit. A second permanent dwelling unit that is attached to or detached from an existing single-family residential dwelling unit which provides complete independent living facilities for one or more persons, as defined in Government Code Section 65852.2(i)(4), as it exists or as it may be amended from time to time. The second dwelling unit shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel that the existing unit is situated. A second dwelling unit may be an efficiency unit, as defined in Health and Safety Code Section 17958.1, as amended, or a manufactured home, as defined in Health and Safety Code Section 18007, as amended. (See subsection 3.17.200 (Second dwelling units).)
SECTION 11. CEQA. In accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, adoption of this Ordinance is exempt in that it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. The adoption of the proposed ordinance is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. The ordinance is limited to establishing procedures and standards for accessory dwelling units and density bonuses pursuant to State law. Reasonable accommodation procedures established are in compliance with federal and State fair housing laws. No new construction is proposed.

SECTION 12. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable.

The City Council of the City of Cypress declares that it would have adopted all the provisions of this Ordinance that remain valid if any provisions of this Ordinance are declared invalid.

SECTION 13. Effective date. This Ordinance shall become effective thirty (30) days from its adoption.

SECTION 14. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the ___ day of __________, 2022.

MAYOR OF THE CITY OF CYPRESS
ATTEST:

CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of said City Council held on the 23rd day of May, 2022, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

CITY CLERK OF THE CITY OF CYPRESS
1 ZONING ORDINANCE AMENDMENTS – REDLINED VERSION
(Strikethrough text represents deleted language while underlined red text represents added language.)
Subsection 2.05.030
TABLE 2-2

ALLOWABLE USES AND PERMIT REQUIREMENTS

ALLOWED PROJECTIONS INTO REQUIRED SETBACK AREAS

Overhanging and
cantilevered roofs and
eaves may project to
within 2 feet 6 inches
from the rear property
line.

Within 5 feet of the
property line.

Overhanging and
cantilevered roofs and
eaves may project to
within 2 feet 6 inches
from the side property
line.

Pool motors and similar equipment Not allowed May be located anywhere within rear
setback.

SECTION 12. DENSITY BONUS

3.12.010. Purpose.

The purpose of this section is to provide incentives for the production of affordable housing in accordance with California Government Code Sections 65915-65918 (“State Density Bonus Law”).
3 A. Purpose. This section is established in compliance with the provisions of Government Code Section 65915 et seq. to encourage the development of affordable housing for both the rental and for-sale housing markets. The city recognizes that incentives are often necessary to encourage development of affordable housing and to ensure that the housing reflects the high-quality standards of development appropriate for all housing types throughout the city.

B. Inclusionary housing policy. Residential development constructed in redevelopment project areas established by the Cypress Redevelopment Agency shall meet the provisions in the inclusionary housing policy adopted by Resolution No. CRA-109 on March 24, 2003, as amended from time to time.

C. State law. The provisions of California Government Code Sections 65915-65918 pertaining to density bonuses and other incentives are hereby adopted, as amended from time to time, as part of this subsection.

3.12.020. Definitions.

The definitions found in State Density Bonus Law shall apply to the terms contained in this section.

Affordable payments. Monthly payments for an owner-occupied unit that:
a. Do not exceed thirty (30) percent of the low and/or very low income individual’s or family’s monthly income; and
b. Include principal and interest on any mortgage, taxes, insurance, and association dues.

Affordable rent.
a. For those units targeted for individuals and families of low income, a monthly rental rate which does not exceed thirty (30) percent of sixty (60) percent of area median income;
b. For those units targeted for individuals and families of very low income, a monthly rental rate which does not exceed thirty (30) percent of fifty (50) percent of area median income.

Affordable units. Units set aside as a condition to granting the density bonus and to be inhabited by individuals and families of low and/or very low income (known collectively as “lower”).

Applicant. The owner or developer of real property who proposes to construct a qualified project providing affordable units for low and/or very low-income individuals and families.

Area median income. Income levels adopted in conformance with the United States Housing Act of 1937, 42 USC section 1437 et seq. and adopted by the State of California, Department of Housing and Community Development in title 25, California 4 Code of Regulations (CCR), Section 6932, which implements Health and Safety Code, section 50093.

Child care facility. A child care facility other than a family day care home, including but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers.

Density. The number of housing units net per acre, unless otherwise stated, for residential uses.

Density bonus. A density increase over the otherwise maximum allowable density for the general plan land use designation and zoning for the site of the proposed development as of the date of application by the applicant to the city. The amount of density bonus to which the applicant is entitled shall vary according to the amount by which the percentage of affordable housing units meet or exceed the percentages established in California Government CodeSection 65915.

Development standard. A site or construction condition including, but not limited to, a height limitation, a setback requirement, a floor area ratio, an on-site open space requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, general plan element, specific plan, charter, or other local condition, law, policy, resolution, or regulation.

Elderly individuals. Individuals and families who meet the qualifications of Health and Safety Code, section 50067.

Low-income individuals. Individuals and families with incomes at or below the range established by Health and Safety Code, section 50079.5, and delineated at 25 CCR 6932; and also includes elderly individuals and families as defined in Health and Safety Code, section 50067.

Maximum allowable residential density. The density allowed under the zoning ordinance and land use element of the general plan.

Owner-occupied projects. Qualified projects for which a density bonus has been granted and whose units are designed to be sold to low-income or very low-income individuals or families, as opposed to being rented to low-income or very low-income individuals or families.

Qualified project. Either an owner-occupied project or a rental project for a housing development consisting of five (5) or more units for which the applicant agrees to construct twenty (20) percent or more of the units for occupancy by lower income individuals and families or ten (10) percent of the total units for individuals and families of very low income.

5 Rental projects. Density bonus projects designed to serve individuals and families of low income and/or very low income on a rental basis where rent payments do not exceed one-third of the individual’s or family’s qualified monthly income.

Reserved retained proceeds. The difference between the market rate resale price of the affordable unit(s) during the restricted period and the amount of the resale price the owner is authorized to retain under the provisions of 3.12.060C.1. and D.1. (Minimum requirements—Owner-occupied units).

Section 8. Section 8 of the United States Housing Act of 1937, as amended, now codified at 42 U.S.C. Section 1437 et seq.

Very low income individuals. Individuals and families with incomes at or below the range established by Health and Safety Code, section 50105, and delineated at 25 CCR 6932.

3.12.030. Applicability.

1. How the proposed project will satisfy the eligibility requirements of Government Code Section 65915 or 65917.2.

2. The requested density bonus pursuant to subsection 3.12.050 (Density Bonus).

6. Documentation of how the project will comply with Government Code Section 65915(c)(3) pertaining to replacement units.

B. Fee. Payment of a fee in an amount set by resolution of the City Council, pursuant to Section 18 of the Cypress Zoning Ordinance.

3.12.050. Density Bonus.

A. Calculation. Density bonuses shall be calculated as set forth in Government Code Section 65915 and 65917.2.

2. When calculating the number of affordable units needed for a given density bonus, any fractions of affordable units shall be rounded up to the next whole number.

3. The density bonus units shall not be included in determining the number of affordable units required to qualify a housing development for a density bonus pursuant to State Density Bonus Law.

3.12.060. Incentives and Concessions.
7 A. The applicant may request up to the number of incentives and concessions for which the project is entitled pursuant to Government Code Section 65915(d)(2).

3.12.070. Waivers and Reductions.

B. The City may deny waivers and reductions for the reasons set forth in Government Code Section 65915(e)(1).

B. Term of affordability. The term of affordability for affordable units shall be at least the period of time required by Government Code Section 65915(c).

C. Sale and resale of owner-occupied units. Sale and resale of owner-occupied units is subject to the requirements of Government Code Section 65915(c)(2).

D. Development Standards.

1. All affordable units shall be reasonably dispersed throughout the housing development.

3. Affordable units shall be comparable with the market rate units in terms of design, construction quality, exterior appearance, exterior finished quality, and size.

4. The bedroom mix of the affordable units shall be equivalent to the bedroom mix of the market rate units of the development, unless otherwise approved by the City. 8 5. Comparable amenities. Residents of affordable units shall have equal access to project amenities available to other residents, including, but not limited to, access to recreational, parking, and storage facilities and interior amenities such as microwaves and dishwashers.

6. Parking. Unless the City’s adopted parking standards will result in fewer parking spaces, the applicant may request a reduction in parking standards pursuant to Government Code Section 65915(p).

3.12.090. Affordable Housing Agreement and Senior Housing Agreement.

1. The total number of units and the number of units that will be made affordable;

2. The size, bedroom count, and location of each affordable unit;

3. The income levels of the affordable units and an acknowledgement that the City will verify tenant and home buyer incomes to maintain the affordability of the units;

4. The term of affordability for the units, which shall not be less than the period of time required by Government Code Section 65915;

5. The approved density bonus, incentives, concessions, waivers, and/or parking reductions, if any;

6. Schedule of development for all units; and

7. An affirmative fair marketing plan that is approved by the City to ensure advertising of the availability of the affordable units to a wide spectrum of City residents.

1. Approved density bonus, incentives, concessions, waivers, and/or parking reductions, if any; and
9 2. Schedule of development for all units.

3.12.100. Enforcement and Monitoring.

A. The provisions of this section shall apply to all developers and their agents, successors, and assigns proposing a housing development governed by this section.

3.12.110. Interpretation.

3.12.030. Participation requirements.

A. Minimum number of units. Only housing developments consisting of five or more housing units shall be eligible for a density bonus in compliance with the provisions of this section 12.

B. Pre-application and application process.
10 1. Pre-application process. Before the submittal of a formal application for a density bonus, the applicant shall complete and submit a pre-application consistent with the requirements of the Department. A pre-application conference shall be conducted with the Director or his designee for the purpose of reviewing the provisions of this Section 12 and discussing the incentives or concessions that may be applied to the proposed project.

2. Written notification of process for project’s qualification to receive density bonus. Within ninety (90) days after receipt of the pre-application, the department shall notify the applicant in writing of the procedures under which the application shall comply with the provisions of this section 12 and Government Code section 65915 et seq. Included within that determination, which shall be approved by the Planning Agency, shall be the method of compliance to be utilized for this project, including the incentive and/or concession outlined in subsection 3.12.040A. (City incentives to encourage participation—Incentives and concessions).

3. Application process. Following receipt of the notice of the department described in subparagraph 2 above, the applicant may submit a formal application consistent with the requirements of section 18 (Applications, Processing, and Fees).

4. Waiver of standards if project not economically feasible. If the applicant believes that a waiver or modification of applicable development and zoning standards is necessary to make the project economically feasible, the applicant shall bear the burden of showing that a waiver or modification is necessary.

3.12.040. City incentives to encourage participation.

A. Incentives and concessions. In addition to granting the density bonus for a qualifying project in compliance with this section, the city shall grant one (1) to three (3) incentive(s) or concession(s) for each project, depending on the percentages of affordable units that the developer provides as set forth in Government Code Section 65915, subsection (d), as follows:

1. Incentives. Incentives shall include:
a. Subsidized development fees;
b. Mixed-use zoning (combination of housing with commercial, office, industrial, or other land uses which will reduce the cost of the housing development); c. Waiver of certain development fees; and
d. Direct financial participation by the city.

2. Concessions. Concessions shall include:
a. Increases in parcel coverage;
b. Decreases in minimum parcel size allowed for development; c. Reduction in side setbacks;
d. Reduction in rear setbacks;
11 e. Coordination of placement and responsibilities for public works improvements;
f. Reduction in local building standards to those minimums approved by the state;
g. Reduction in the number of required off-street parking spaces; or h. Waiver of certain fee or dedication requirements.

B. Additional density bonus. An applicant shall be eligible for an increased density bonus for a housing development that includes a donation of land and/or a child care facility, subject to the conditions and provisions set forth in Government Code Section 65915, subsections (g) and (h), respectively.

C. Vehicle parking ratio. In accordance with Government Code Section 65915, subsection (p), the following minimum vehicle parking ratios shall be applied to qualifying density bonus projects. Upon the request of the developer, the city shall allow the following vehicle parking ratios, inclusive of handicapped and guest parking, of a development meeting the criteria for a density bonus as set forth in this ordinance:

1. Zero (0) to one (1) bedroom: One (1) onsite parking space.

2. Two (2) to three (3) bedrooms: Two (2) onsite parking stalls.

3. Four (4) or more bedrooms: Two and one half (2½) parking spaces.

4. A density bonus development may provide onsite parking through tandem parking or uncovered parking, but not through on-street parking.

5. An applicant may request parking incentives or concessions beyond those provided in this subsection.

3.12.050. Minimum requirements—Rental units.

A. Number of affordable units. An applicant may request a density bonus whenever an applicant agrees to construct a rental project that will contain one (1) of the following:

1. Ten (10) percent or more of the units set aside for occupancy by lower income individuals and families; or

2. Five (5) percent or more of the units set aside for occupancy by very low income individuals and families; or

3. A senior citizen housing development as defined in Civil Code Sections 51.3 and

51.12, or mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.

B. Standards and limitations. A request for a density bonus shall be granted subject to the following standards and limitations.

1. Eligibility requirements. The proposed project qualifies under the applicable definitions outlined in subsection 3.12.020 (Definitions), above.

2. Number of bonuses, incentives, or concessions. The applicant is eligible for both a density bonus and at least one additional incentive or concession. 12 3. Type of bonuses, incentives, or concessions. The additional incentive or concession shall be from the list provided in subsection 3.12.040A. (City incentives to encourage participation—Incentives and concessions), above.

4. Written density bonus agreement. The applicant shall enter into and execute a written density bonus agreement with the city before the issuance of any building permits. This density bonus agreement shall specifically outline the terms of the density bonus and shall identify any additional incentive or concession provided.

5. Time periods for affordability restrictions. Units set aside for lower income individuals and families (the affordable units) shall be affordable at affordable rents as defined in subsection 3.12.020 (Definitions—Affordable rent) for a period of at least thirty (30) years.

6. Thirty-year or longer time period for affordability restrictions when direct government financial assistance. Units constructed as a rental project to serve individuals and families of low and/or very low income for which the rental project receives direct financial assistance from the federal or state government or from the city redevelopment agency, or housing authority, including local construction or mortgage financing assistance, mortgage insurance, rent subsidies, reduced cost realty, or similar financial participations, shall be reserved for a period of thirty (30) years. A longer period of time may be established if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or applicable redevelopment law.

7. Affordable units comparable in quality to entire project. Units financed under section 1472 and 1490(a) of Title 42 of the United States Code shall be subject to the applicable restrictions of that title. The applicant shall ensure, and the city shall review for compliance, that the units designated for lower income individuals and families contain a bedroom mix representative of the entire development and contain comparable quality amenities representative of the entire project. In no instance shall the applicant be entitled to downgrade the affordable units or to make them of lesser quality or in any way prejudice or stigmatize the designated unit and/or its residents.

8. Liquidated damages provision required in density bonus agreement. The recorded covenants for the rental project shall provide for liquidated damages to be paid to the city, or any housing authority acting on the city’s behalf, in the event of a breach of the terms of the density bonus agreement required under this section. The liquidated damages shall be outlined in the agreement, determined in advance by the city, and shall relate directly to the anticipated costs of providing replacement affordable units for the balance of the term of the density bonus agreement required in compliance with this section 12.

9. Participation in Orange County Single-Family Revenue Bond Program. The applicant may participate in the County of Orange Single-family Revenue Bond Program and shall conform to the criteria established by the bond program requiring affordability for lower income or very low income individuals and families. However, the applicant shall also be required to meet the standards, requirements, conditions, and terms of the density bonus program and this section 12 established by the city. In the event of conflict between the terms and conditions of the county program and this section, the conflict shall be resolved 13 in, and governed by, the density bonus agreement between the city and the applicant.

C. Right of Planning Agency to disapprove additional incentive or concession. After evaluating any additional incentive or concession that could result in the rental project being produced at the reduced cost, the planning agency may make a written finding that the additional incentive or concession is not required in order for rents for the affordable units to qualify as affordable in compliance with subsection 3.12.020 (Definitions—Affordable rent) above.

3.12.060. Minimum requirements—Owner-occupied units.

A. Number of affordable units. An applicant may request a density bonus whenever an applicant agrees to construct a rental project that will contain one (1) of the following:

1. Ten (10) percent or more of the units set aside for occupancy by lower income individuals and families; or

2. Five (5) percent or more of the units set aside for occupancy by very low income individuals and families; or

3. A senior citizen housing development as defined in Civil Code Sections 51.3 and

51.12, or mobilehome park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.

4. Ten (10) percent of the total dwelling units in a common interest development as defined in Section 1351 of the Civil Code for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code, provided that all units in the development are offered to the public for purchase.

B. Standards and limitations. A request for a density bonus shall be granted subject to the following standards and limitations.

1. Eligibility requirements. The proposed project qualifies under the applicable definitions outlined in subsection 3.12.020 (Definitions), above.

2. Number of bonuses, incentives, or concessions. The applicant is eligible for both a density bonus and at least one additional incentive or concession.

3. Type of bonuses, incentives, or concessions. The additional incentive or concession shall be from the list provided in subsection 3.12.040A. (Incentives and concessions) above.

4. Written density bonus agreement. No application for a development project that includes an owner-occupied density bonus unit shall be complete unless and until the applicant has entered into and executed a written density bonus agreement provided to the applicant by the city. This density bonus agreement shall specifically outline the terms of the density bonus and identify any additional incentive or concession provided. Applicants seeking to utilize the “affordability plan” option provided in subsection 3.12.060C. (Determination of initial selling price) shall submit an “affordability plan” concurrently with the filing of the application for the development project.
14 5. Time periods for affordability restrictions. Units set aside for lower income individuals and families (the affordable units) shall be affordable at affordable rents as defined in subsection 3.12.020 (Definitions—Affordable rent) for a period of at least thirty (30) years.

6. Thirty-year or longer time period for affordability restrictions when direct government financial assistance. Units constructed as an owner-occupied project for which the owner-occupied project receives direct financial assistance from the federal or state government or from the city redevelopment agency, or housing authority, including local construction or mortgage financing assistance, mortgage insurance, rent subsidies, reduced cost realty, or similar financial participations shall be reserved for a period of thirty (30) years. A longer period of time may be established if required by the construction or mortgage financing assistance program, mortgage insurance program, rental subsidy program, or applicable redevelopment law.

7. Affordable units comparable in quality to entire project. Units financed under section 1472 and 1490(a) of title 42 of the United States Code shall be subject to the applicable restrictions of that title. The applicant shall ensure, and the city shall review for compliance, that the units designated for lower income individuals and families contain a bedroom mix representative of the entire development and contain comparable quality amenities representative of the entire project. In no instance shall the applicant be entitled to downgrade the affordable units or to make them of lesser quality or in any way prejudice or stigmatize the unit and/or its residents.

8. Liquidated damages provision required in density bonus agreement. The recorded covenants for the owner-occupied project shall provide for liquidated damages to be paid to the city, or any housing authority, acting on the city’s behalf, in the event of a breach of the terms of the agreement required under this section. The liquidated damages shall be outlined in the density bonus agreement, determined in advance by the city, and relate directly to the anticipated costs of providing replacement affordable units for the balance of the term of the density bonus agreement required in compliance with this section 12.

9. Participation in Orange County Single-Family Revenue Bond Program. The applicant may participate in the County of Orange Single-family Revenue Bond Program and shall conform to the criteria established by the bond program requiring affordability of lower income or very low-income individuals and families. However, the applicant shall also be required to meet the standards, requirements, conditions, and terms of the density bonus program and this section established by the city. In the event of conflict between the terms and conditions of the county program and this section 12, the conflict shall be resolved in, and governed by, the density bonus agreement between the city and the applicant.

C. Determination of initial selling price. The initial selling price of the affordable unit(s) shall be based upon one of the following mechanisms:

1. Maximum total unit price capped at three (3) times income and monthly payments capped at thirty (30) percent of income. The total unit price for a 15 qualified affordable unit shall not be more than three (3) times the income of the low and/or very low income individuals or families purchasing an affordable unit.

The monthly payments including principal, interest, taxes, insurance, and association dues, if any, shall not exceed thirty (30) percent of the income of the low or lower income individuals or families buying the unit(s) based on a fully amortized thirty-year fixed rate mortgage or a thirty-year variable rate mortgage with monthly payments that cannot increase more than seven and one-half (7 1/2) percent per year. With the variable rate mortgage and allowed increases, the total monthly payments shall not exceed thirty (30) percent of the monthly income of the low or lower income individuals or families purchasing the unit(s). Down payment requirements shall not exceed that customarily required in the lending industry for units selling at a comparable price.

2. Council-approved affordability plan. The total unit price for the affordable unit(s) may be based on an “affordability plan” submitted by the applicant with the application for a density bonus. An “affordability plan” shall demonstrate to the satisfaction of the Director that the affordable unit(s) sold under the affordability plan will be affordable to individuals and families of low and lower income.

Utilization of the affordability plan shall only be available to an applicant if the plan is specifically approved by the planning agency at the time the planning agency approves the project.

3. Pricing mechanism in absence of request for affordability plan or approval of affordability plan. The failure of the planning agency to approve or the applicant to request or submit an affordability plan at the time the application for the project is complete or deemed complete shall mean the pricing mechanism outlined in subparagraph B.1. above controls.

D. Resale of affordable units—Ten-year period. Refer to the resale requirements for thirty-year period, as described in the following subsection E.

E. Resale of affordable units—Thirty-year period. The city shall enforce an equitysharing agreement, unless it is in conflict with the requirements of another public funding source or law. The following shall apply to the equity-sharing agreement:

1. The city’s initial subsidy shall be equal to the fair market value of the home at the time of initial sale minus the initial sale price to the moderate-income household, plus the amount of any downpayment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale shall be used as the initial market value.

2. Upon resale, the seller of the unit shall retain the value of any improvements, the downpayment, and the seller’s proportionate share of appreciation. The city shall recapture any initial subsidy, as defined in subparagraph 2. herein, and its proportionate share of appreciation, as defined in subparagraph 3. herein, which amount shall be used within five (5) years for any of the purposes described in subdivision (e) of Section 33334.2 of the Health and Safety Code that promote home ownership.
16 3. The city’s proportionate share of appreciation shall be equal to the ratio of the city’s initial subsidy to the fair market value of the home at the time of initial sale.

4. Lien for performance of affordability requirements. The reserved retained proceeds shall constitute the city’s security for performance of the affordability requirements and shall be in the nature of a lien on the affordable unit(s). The lien shall be released by the payment to the city by the property owner of the reserved retained proceeds or by the termination of the period during which the affordable unit(s) is/are to remain affordable.

F. Right of planning agency to disapprove additional incentive or concession. In accordance with the provisions set forth in Government Code Section 65915, subsections (d) and (e), the city shall not be required to grant an incentive or concession that would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon health, safety, or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

3.12.070. Rental or leasing of affordable owner-occupied units unlawful.

It shall be unlawful and an infraction, subject to punishment in compliance with section 1-7(b) and (c) (General penalty; continuing violations) of the Municipal Code, for the owner(s) of an owner-occupied affordable unit subject to the provisions of this section to rent, lease, sublease, sublet, subrent, hire-out, let, underlease, underrent, or otherwise let for consideration the unit. This restriction shall not prohibit owner-occupant(s) from having roommates as paying tenants of the unit, so long as the owner-occupant(s) reside(s) at the unit.

Subsection 3.17.020(B)
B. Accessory structures used for living purposes. An accessory structure used for living purposes shall meet the requirements of subsection 3.17.200 (Second Accessory dwelling units).

Subsection 3.17.200

3.17.200. Second Accessory dwelling units.

B. Effect of conforming. An ADU or JADU that conforms to the provisions of this subsection shall:
17 1. Be deemed an accessory use or an accessory building and shall not be considered to exceed the allowable density for the lot upon which it is located;

2. Be deemed a residential use that is consistent with the existing general plan and zoning designation for the lot upon which it is located; and

3. Not be considered in the application of any local ordinance, policy, or program to limit residential growth.

C. Application and review procedures.

2. Nonconformities. The correction of nonconforming zoning conditions shall not be required for the creation of an ADU or JADU.

D. Locations permitted.

3. ADUs and JADUs shall not be permitted on any parcel that has obtained a permit for a two-unit development and urban lot split pursuant to Government Code Sections 65852.21 and 66411.7.

E. Number of ADUs and JADUs permitted.

1. Single-family lots. No more than one (1) ADU and one (1) JADU is permitted on a lot developed or proposed to be developed with a single-family dwelling.

2. Multi-family lots. A lot developed with a two-family or multi-family dwelling shall be permitted either:
18 a. No more than two (2) detached ADUs; or
b. Up to twenty-five (25) percent of the number of existing multi-family dwelling units within existing multi-family or two-family dwelling structures. The ADUs must be converted from portions of the existing multi-family dwelling structure that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. For the purposes of calculating the number of allowable ADUs, the following shall apply:
i. Fractions shall be rounded down to the next lower whole number of dwelling units, except that at least one (1) ADU shall be allowed. ii. Previously approved ADUs shall not count towards the existing number of multi-family dwelling units.

1. Lot area. There shall be no minimum lot area required in order to establish an ADU or JADU.

2. Unit size.
a. ADUs.
i. No ADU shall exceed 1,200 square feet in size.
ii. An attached ADU that is created on a lot with an existing or proposed singlefamily dwelling is further limited to fifty (50) percent of the floor area of the existing or proposed primary dwelling.
iii. An ADU constructed solely through the conversion of an existing building or structure or in the same location and same dimensions as an existing structure shall be limited in size to the existing square footage of the building or structure converted or replaced, except that an expansion of not more than 150 square feet is permitted to accommodate ingress and egress to the ADU only.
iv. The application of requirements related to lot coverage, floor area ratio, or open space may further limit the size of an ADU; however, in no case shall the application of such requirements limit the size of an ADU to less than 800 square feet.
19 b. JADUs. No JADU shall exceed 500 square feet in size. c. Minimum size. The minimum size of an ADU or JADU shall be at least that of an efficiency unit, as defined in Health and Safety Code Section 17958.1.

5. Parking.
a. ADUs. A minimum of one (1) parking space shall be provided for each ADU unless they are not required pursuant to paragraph (5.b) below. The required parking space may be permitted in setback areas or through tandem parking on a driveway.
b. Exceptions. Off-street parking for the ADU is not required in the following instances:
i. The ADU is a studio;
ii. The ADU is located within one-half (1/2) mile walking distance of public transit, as that term is defined in Government Code Section 65852.2; or iii. When parking for the ADU is not required pursuant to Government Code Section 65852.2 (d).
c. JADUs. No parking shall be required for JADUs.
20 d. No Replacement. When a garage, carport, or covered parking structure is converted or demolished in conjunction with the construction of an ADU or JADU, those off-street parking spaces are not required to be replaced.

7. Design. Exterior finished materials on the ADU or JADU shall match the exterior finished materials for the primary dwelling unit.

8. Fire sprinklers. Fire sprinklers are required in an ADU only if sprinklers are required in the primary residence.

9. Exterior access. An attached or converted ADU or JADU on a single-family lot must have independent exterior access that is separate from the access to the proposed or existing primary dwelling.

G. Other requirements.

1. No separate conveyance. Except as otherwise provided in Government Code Section 65852.26 or by other applicable laws, an ADU or JADU may be rented 21 separate from the primary residence(s), but may not be sold or otherwise conveyed separate from the primary residence(s). A lot shall not be subdivided in any manner which would authorize such separate sale or ownership.

2. Short-term rental prohibited. Rental of an ADU or JADU for a term of thirty (30) days or less is prohibited.

4. Deed restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction shall be recorded against the title of the property in the county recorder’s office and a copy filed with the Community Development Department. The deed restriction shall run with the land and bind all future owners. The form of the deed restriction will be provided by the City and shall include the following:
a. The ADU or JADU may not be sold separately from the primary dwelling(s). b. The ADU or JADU is restricted to the approved size and to other attributes allowed by this subsection, including owner occupancy restrictions and the prohibition on short-term rental.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may not be modified or terminated without the prior written consent of the director.
e. The deed restriction is enforceable by the director or their designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but 22 not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.

This subsection provides standards for the establishment of second dwelling units.

A. State law. A second dwelling unit may be constructed on a parcel that is zoned for single-family housing in compliance with Government Code §§ 65852.1 and 65852.2, and shall not exceed the allowable density for the parcel upon which the second dwelling unit is located and shall be considered a residential use that is consistent with the existing general plan and zoning designation for the parcel.

B. Zoning clearance required. Second dwelling units shall require zoning clearance approval (subsection 4.19.020) to ensure compliance with the requirements of this Code. In addition, a CUP is required for any second dwelling unit approved pursuant to subsection (i), below.

C. Site requirements. A parcel proposed for a second dwelling unit shall comply with all the following requirements:

1. The second dwelling unit may be within, attached to, or detached from the primary dwelling unit. If detached, the second dwelling unit shall be separated from the primary dwelling unit a minimum of ten (10) feet and shall comply with all setback requirements for the primary structure and all applicable UBC requirements;

2. The second dwelling unit shall conform to the height, setback, parcel coverage, and all other development standards applicable to the construction of the primary unit in the zoning district in which the unit is proposed to be located;

3. A legal, conforming, primary dwelling unit shall exist on the parcel;

4. Building code violations existing in the primary dwelling unit shall be corrected to the satisfaction of the building official before the issuance of any building permit and a zoning clearance for the second dwelling unit.

D. Ownership and residency requirements.

1. The applicant shall be the owner of the primary unit and shall occupy either the primary unit or the second dwelling unit; and
23 2. The property owner shall record a covenant declaring that the owner of the primary residence shall occupy one of the units and prohibiting the rental of both units simultaneously. The covenant shall expressly state that it is binding on all future owners of the property. Should the property owner fail to comply with the terms of the covenant, in the city’s discretion, the city may require the property owner to:
a. Remove the second dwelling unit; or
b. Retrofit the second dwelling unit. For the purposes of this section, “retrofit” shall mean removal of certain facilities (i.e. kitchen or other cooking facilities) or other modifications specified by the director.

A copy of the recorded covenant shall be filed with the department prior to issuance of a certificate of occupancy for the second dwelling unit.

E. Independent sale prohibited. The second dwelling unit shall not be sold independently of the primary dwelling unit on the parcel, nor shall the original parcel or original section thereof be subdivided.

F. Utility connections. The second dwelling unit shall not be on separate meters for gas, electric, water service, or any other utility.

G. Parking. One additional parking space per bedroom in the second dwelling unit is required. If the second swelling unit is being approved pursuant to subsection I., below, the required parking must be enclosed.

H. Design standards for a second dwelling unit not more than six hundred forty (640) square feet. A second dwelling unit that is approved pursuant to this subsection shall:

1. Contain no less than two hundred twenty (220) gross square feet and no more than six hundred forty (640) gross square feet of living area;

2. Not contain more than one bedroom;

3. Be architecturally compatible with the primary unit on the same parcel or with the predominant architecture of the area; and

4. Have a primary entrance that is clearly subordinate to that of the primary dwelling.

I. Design standards for a second dwelling unit more than six hundred forty (640) square feet. A second dwelling unit that is approved pursuant to this subsection shall be:

1. Larger than six hundred forty (640) gross square feet of living area, but less than thirty (30) percent of the existing living area in the primary residence;

2. Architecturally compatible with the primary unit on the same parcel or with the predominant architecture of the area; and

3. The primary entrance to the second dwelling unit shall be clearly subordinate to that of the primary dwelling.

Subsection 4.19.100
24 4.19.100. Reasonable Accommodation.

E. Applicability.

3. Where the improvements or modifications approved through a reasonable accommodation would generally require a variance, a variance shall not be required.

F. Application Requirements.

1. Required submittals. In addition to the application filing requirements established in Section 18 (Applications, Processing, and Fees), the following information shall be provided by the applicant on a form supplied by the Community Development Department:
a. Documentation that the applicant is an individual with a disability, applying on behalf of one or more individuals with a disability, or a developer or provider of housing for one or more individuals with a disability. Documentation may include a letter from a medical doctor or other licensed healthcare professional, a disabled license, or any other appropriate evidence;
b. The specific code section, regulation, policy or practice from which relief is sought and an explanation of why it is preventing, or will prevent, the use and enjoyment of the subject property by one or more individuals with a disability; 25 c. The specific exception or modification requested and an explanation of why it is necessary to provide one or more individuals with a disability equal access to housing;
d. Verification that the property is or will be the primary residence of the individual(s) for whom the reasonable accommodation is requested; and e. Any other information that the director reasonably concludes is necessary to make the findings required by this subsection, consistent with Fair Housing Laws.

3. Fee. No fee shall be required for a request for reasonable accommodation, but if the project requires another permit, then the prescribed fee shall be paid for all other permits.

G. Authority.

H. Proceedings.

1. Director’s action. For requests reviewed by the director, the director shall issue a written determination within 30 days of the date of receipt of a complete application.

3. The reviewing authority’s written decision shall set forth the findings in accordance with paragraph F (Findings), any conditions of approval, and notice of the right to appeal, if applicable.
26 4. Conditions of approval. The reviewing authority may impose any conditions of approval deemed reasonable and necessary to ensure that the reasonable accommodation complies with the findings required by this subsection.

5. Alternative reasonable accommodations. The reviewing authority may approve alternative reasonable accommodations that provide an equivalent level of benefit to the individual(s) with disabilities.

I. Findings. A request for reasonable accommodation shall be approved, with or without conditions, if the review authority first finds, based upon all the evidence presented, all of the following:

1. The housing which is the subject of the request for reasonable accommodation will be occupied by one or more individuals with disabilities protected under Fair Housing Laws;

2. The reasonable accommodation is necessary to make housing available to one or more individuals with a disability protected under the Fair Housing Laws;

3. The requested accommodation will not impose an undue financial or administrative burden on the City; and
27 4. The requested accommodation will not require a fundamental alteration in the nature of the City’s zoning or building laws, policies, and/or procedures.

Subsection 4.18.040

4.18.040. Authority for land use and zoning decisions.

TABLE 4-1

SECTION 31. DEFINITIONS.

6.31.020. Definitions of specialized terms and phrases. 28 D. Definitions, “D.”
Density bonuses. A density bonus, as defined by Government Code § 65915 et seq., is an increased residential density of at least twenty-five (25) percent over the maximum authorized density which is granted to an owner/developer of a housing project agreeing to construct a prescribed percentage of affordable very low and/or low income dwelling units pursuant to Government Code Sections 65915-65918.

1. An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code; and

2. A manufactured home, as defined in Section 18007 of the Health and Safety Code.

NOTICE OF EXEMPTION
TO: Office of Planning and Research FROM: City of Cypress 1400 Tenth Street, Room 121 5275 Orange Avenue
Sacramento, CA 95814 Cypress, CA 90630
X County Clerk-Recorder
Public Services Division Filing Fee Exempt per Govt. Code Section 6103 P.O. Box 238
Santa Ana, CA 92702
Project Title
Zoning Ordinance Amendment to Section 12 – Density Bonus; Subsection 3.17.200 – Second Dwelling Units; and Subsection 4.19.100 – Reasonable Accommodation.

Project Location - Specific
City-wide
Project Location - City
Cypress
Project Location - County
Orange
Description of Nature, Purpose, and Beneficiaries of Project A City-initiated amendment to the text of the Cypress Municipal Code, Appendix I – Zoning, to be consistent with related State housing laws as follows: (1) Repealing Section 12 (“Density Bonus”) and replacing it with a new Section 12 (“Density Bonus”) to comply with current State density bonus regulations (Government Code Sections 65915-65918); (2) Repealing Subsection 3.17.200 (“Second dwelling units”) and replacing it with a new Subsection 3.17.200 (“Accessory dwelling units”) to comply with Government Code Sections 65852.2 and 65852.22; and (3) Creating a new Subsection

4.19.100 (“Reasonable Accommodation”) to establish procedures to request reasonable accommodation for persons with disabilities seeking equal access to housing under the Federal Fair Housing Act and the California Fair Employment and Housing Act. No new construction is proposed as part of this action.

Name of Public Agency Approving Project
City of Cypress
Name of Person or Agency Carrying Out Project (Applicant’s Name and Address) City of Cypress, Planning Division, 5275 Orange Avenue, Cypress, CA 90630 Exempt Status: (Check One)
Ministerial (Sec. 21080(b)(1);15268);
Declared Emergency (Sec. 21080(b)(3);15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number.

X General Rule (Sec. 15061 [b] [3])
Reasons why project is exempt:

It can be seen with certainty that there is no possibility that this ordinance amendment may cause a significant effect on the environment, since the amendment is general in nature, limited to establishing procedures and standards, and would not preclude the review and application of the CEQA Guidelines for specific future residential projects.

Lead Agency Contact Person
Alicia Velasco, Planning Director
Area Code
(714)
Telephone Number
229-6720
If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a notice of exemption been filed by the public agency approving the project? Yes X No ________
_________________________________ __________________________ ______________ Date Received for Filing at OPR Signature Date
Planning Director_____
Title
Signed by Lead Agency
Signed by Applicant
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 2.

FROM: Alicia Velasco, Planning Director
DATE: 06/13/2022
SUBJECT: Approve Conditional Use Permit No. 2022-01 to Permit a New Self-Service Car Wash at 5890 Lincoln Avenue

RECOMMENDATION
Adopt a Resolution approving Conditional Use Permit No. 2022-01, with conditions, and confirm the project is exempt from California Environmental Quality Act requirements.

DISCUSSION
Subject Property and Surrounding Uses
The subject property is a 0.69-acre rectangular-shaped parcel, developed with a full-service car wash (Green Auto Spa). The property is located in the Commercial Mixed-Use (CM) District of the Lincoln Avenue Specific Plan (LASP). Land uses surrounding the property are:

The property and surrounding vicinity are shown on the attached map.

Background
In 2002, the City Council approved Conditional Use Permit (CUP) No. 2002-12, approving a full-service car wash, fast-food restaurant, and accessory retail sales within a two-story building. The full-service car wash has been unable to maintain steady ownership and had four owners over the past 20 years. The applicant plans to purchase the property, demolish the building, and construct a new self-service car wash facility.

Direction Land Use Zoning
North Retail Commercial Center Commercial Shopping (City of Buena Park)
South Home Improvement (Home Depot)
Store
PC Planned Community
(LASP-CM District)
East Drive-thru Restaurant and Quick
Lube/Tune Shop
PC Planned Community
(LASP-CM District)
West Home Improvement (Home Depot)
Store
PC Planned Community
(LASP-CM District)
Project Description
The applicant is requesting to operate a new 3,200 square foot self-service carwash consisting of a car wash tunnel, accessory space for equipment and storage rooms, and 23 vacuum stalls. A CUP is required for car wash uses within the Lincoln Avenue Specific Plan.

While the existing full-service car wash has a CUP, the demolition of the building and change in business model (to self-service) trigger the requirement for a new CUP.

Currently, vehicle access to the property is from both Lincoln Avenue and Valley View Street.

There are no proposed changes to the existing access or drive-way entrances. The project provides 25 parking spaces, which exceeds the 16 spaces required. Of the 25 spaces, 23 are vacuum stalls and two are employee parking only. The car wash tunnel can accommodate four vehicles through the washing process and there is space for an additional 12 vehicles to queue at the car wash entrance.

The hours of operation are 7:00 a.m. to 7:00 p.m., seven days a week. This is two fewer hours per day than the existing car wash which is permitted from 6 a.m.to 8 p.m. Three or four employees will be on-site to assist customers. Vehicles enter a two-lane que and pay at an auto-pay station. After payment, the vehicle enters the automated car wash tunnel. When the car wash is complete, customers proceed to the vacuum parking spaces or exit the property.

Analysis
The property is located in the CM – Commercial Mixed Use District of the Lincoln Avenue Specific Plan (LASP) area. The Specific Plan permits car wash uses with a CUP in the CM District. Required findings for a CUP are outlined by State law and Section 4.19.070 of the Zoning Ordinance. The required findings for approval of the project are included in the attached resolution and outlined below.

The project is located in a heavily-used commercial area along a major arterial (Lincoln Avenue). There are no residential uses in the vicinity. The building’s design meets all development standards, including building setbacks, height, and parking. Further, the LASP calls out desirable design elements such as multi-planed pitched roofs; richness of surface texture (i.e. use of stone and tile accents); and significant wall articulation (i.e. wall insets and pop-outs, roof overhangs, and window rhythms). The applicant collaborated with Planning and the proposed project meets the enhanced-design requirements of the LASP. The project provides appropriate street-scape design by concealing the vacuum equipment with canopies and abundant landscaping.

A car wash and fast-food restaurant has operated with a CUP at this location for 20 years. To ensure the continued smooth operation of a car wash, many of the existing operating conditions are recommended for the new CUP, including: hours of operation; a sound muffling system on the vacuums; and water quality conditions. A traffic analysis was prepared for the existing car wash/fast food restaurant and no traffic impacts were identified nor have unforeseen traffic impacts occurred as a result of the business. Similarly, traffic impacts are not anticipated with the new car wash because: 1) access continues from Lincoln Avenue and Valley View, two major traffic arterials; and, 2) the new car wash does not include a fast food restaurant.

Conditional Use Permit
The project is consistent with the required findings in Section 4.19.070E (Conditional Use Permit):

1. The location of the conditional use is consistent with the requirements of the General Plan and the zoning district in which the site is located:

The site is zoned PC - Planned Community (Lincoln Avenue Specific Plan area), which is consistent with the Specific Plan designation in the General Plan. The site is more specifically located within the CM District of the Lincoln Avenue Specific Plan, which allows a car wash use, subject to a conditional use permit.

2. The location of the conditional use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety or welfare, or be materially injurious to properties or improvements in the vicinity:

The self-service car wash use is compatible with the surrounding commercial retail and service uses and will not be detrimental to the public health, safety or welfare, or be materially injurious to properties or improvements in the vicinity. There are no residential uses located in the project vicinity. The site plan complies with the Zoning Ordinance and LASP standards for access driveways and parking areas. With the recommended conditions of approval, the project complies with the Municipal Code, the Building Code, Orange County Fire Authority requirements and Police Department recommendations. A car wash has operated at this location for 20 years with no public safety issues or complaints.

3. The proposed conditional use will comply with applicable provisions of the Zoning Ordinance:

The PC - Planned Community Zone refers to the permitted uses and development standards contained in the applicable Specific Plan. The self-service car wash is a conditionally permitted use within the CM District of the Lincoln Avenue Specific Plan. The project meets all applicable development standards and design guidelines in the Lincoln Avenue Specific Plan.

Based on this analysis, it is recommended the City Council approve the project, subject to the attached conditions of approval. The applicant has agreed to all the attached conditions.

Environmental Exemption
The proposed project is categorically exempt pursuant to California Environmental Quality Act (CEQA) Guidelines, Section 15302(b) – Replacement Construction.

Public Hearing
Public hearing notices were posted and mailed to owners of all properties within 500 feet of the site. To date, the City has not received any communication regarding this item.

Alternative Action
In the event the City Council determines there are issues that should be addressed prior to taking any action on this item, the City Council should continue this application and instruct staff to work with the applicant to resolve the issues. A second alternative is to make the required findings for denial and deny the project based on these findings.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution
Project Conditions
Project Renderings and Plans
Vicinity Map
Notice of Exemption
-1-
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS APPROVING CONDITIONAL USE PERMIT NO. 2022-01, A REQUEST TO PERMIT A NEW SELF-SERVICE CAR WASH LOCATED AT 5890 LINCOLN AVENUE WITHIN THE PC - PLANNED

COMMUNITY ZONE
WHEREAS, the City Council of the City of Cypress has considered an application for a conditional use permit in accordance with the provisions of Section 4.19.070 of the Zoning Ordinance of the City of Cypress to allow the construction and replacement of an existing fullservice car wash with a new self-service car wash facility located at 5890 Lincoln Avenue, within the PC - Planned Community Zone.

WHEREAS, the subject site is zoned PC - Planned Community Zone and designated “Specific Plan” in the City’s General Plan, and Section 4.4, Table 1, of the applicable Lincoln Avenue Specific Plan allows car washes with a conditional use permit in the CM – Commercial Mixed Use District of the Specific Plan, where the subject property is located.

WHEREAS, the City Council, after proper notice thereof, on June 13, 2022, held a duly noticed public hearing on the application and took public testimony.

WHEREAS, the proposed project is categorically exempt pursuant to California Environmental Quality Act (CEQA) Guidelines, Section 15302 – Replacement Construction.

Section 15302(b) involves the replacement/reconstruction of a building with a new structure of substantially the same size, purpose and capacity. The proposed project consists of the replacement of an existing 4,500 square-foot, full-service car wash building with a new 3,200 square-foot, self-service carwash building. Therefore, the City Council has determined that there is no substantial evidence that the project may have a significant effect on the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, DOES HEREBY RESOLVE, based upon substantial evidence taken from the administrative record and at the public hearing, AS FOLLOWS:

SECTION 1. Findings. Pursuant to the Section 4.19.070E of the Cypress Zoning Ordinance, the City Council finds, after due study and deliberation that the following circumstances exist:

1. The proposed location of the conditional use is consistent with the requirements of the general plan and the zoning district in which the site is located:

3. The proposed conditional use will comply with each of the applicable provisions of the Zoning Ordinance:

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Cypress does hereby approve Conditional Use Permit No. 2022-01, subject to the conditions attached hereto as Exhibit "A".

Any challenge to this Resolution, and the findings set forth therein, must be filed within the 90-day statute of limitations set forth in Code of Civil Procedure 1094.6.

PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 13th day of June, 2022.

MAYOR OF THE CITY OF CYPRESS
ATTEST:

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )
-3-

COUNTY OF ORANGE ) SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 13th day of June, 2022, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

CITY CLERK OF THE CITY OF CYPRESS
 Community Development Department  Planning Division  EXHIBIT "A"
CONDITIONAL USE PERMIT NO. 2022-01
(Self-Service Car Wash)
5890 Lincoln Avenue

CONDITIONS OF APPROVAL

1. General Conditions

1.1. Prior to the issuance of building permits, the project applicant and property owner shall sign and return a City-provided affidavit accepting these conditions of approval. (Planning)

1.2. This permit is granted for the plans dated 5/20/22. The project shall conform to the plans, except as otherwise specified in these conditions, or unless a minor modification to the plans is approved by the Planning Director. (Planning)

1.3. The Conditional Use Permit (CUP) approval shall be valid for a 24 month period from the effective date of the approval. The approval shall lapse and become void after that 24 month period unless either: (Planning)
a. A building permit has been issued and construction commenced and diligently pursued toward completion on the site for which the CUP approval was granted; or b. Before the date on which permit approval will elapse, the grantee or the city files an application to renew the CUP approval in compliance with the Cypress Zoning Ordinance, Article 4, Subsection 4.19.070.H.3 (Time Limit).

1.4. The applicant shall defend, indemnify, and hold harmless, the City and any agency thereof, or any of its agents, officers, and employees from any and all claims, actions, or proceedings against the City or any agency thereof, or any of its agents, officers or employees, to attack, set aside, void or annul, an approval of the City, or any agency thereof, advisory agency, appeal board, or legislative body, including actions approved by the voters of the City, concerning the project, which action is brought within the time period provided in Government Code Section 66499.37 and Public Resources Code, Division 13, CH. 4 (§ 21000 et seq. - including but not by way of limitation § 21152 and 21167). City shall promptly notify the applicant of any claim, action, or proceeding brought within this time period. (City Attorney)

1.5. The applicant’s contractor shall provide the City with a Certificate of Insurance on City form evidencing a comprehensive liability insurance policy with a combined single limit of not less than $500,000 each occurrence in connection with the work performed. Certificate shall include the City, its Council, officers, members of boards or commissions and employees as additional Named Insureds with respect to all claims, actions, damages, liabilities and expenses, including attorney's fees, arising out of or in connection with the work to be performed under the development executed by the Named Insured and City, including any act or omission of employees, agents, subcontractors, or their employees. Such certificate shall have a 30 day cancellation notice to the City of Cypress. (City Attorney) Exhibit “A”
Conditional Use Permit No. 2022-01 Page 2
Conditions of Approval
 Community Development Department  Planning Division 

1.6. The applicantshall comply with all provisions of the Code of the City of Cypress. (Planning)

1.7. All requirements of the Orange County Fire Authority (OCFA) shall be complied with prior to a certificate of occupancy being issued. (Planning)

1.8. The applicant shall obtain a Cypress business license prior to commencement of the business operation. (Finance)

1.9. All applicable conditions of the project shall be complied with prior to occupancy of the car wash building. (Planning)

1.10. Any and all correction notice(s) generated through the plan check and/or inspection process is/are hereby incorporated by reference as conditions of approval and shall be fully complied with by the owner, applicant and all agents thereof. (Planning)

2. Planning

2.1. Any expansion or modification of the approved use beyond what is approved as part of this Conditional Use Permit will require an amendment to the conditional use permit. (Planning)

2.2. This conditional use permit may be modified or revoked by the City Council should the Council determine that the proposed use or conditions under which it is being operated or maintained is detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. (Planning)

3. Architectural

3.1. Architectural elevations and site plans shall be reviewed and approved by the Community Development Department prior to the issuance of building permits. (Planning)

3.2. All architectural treatments shall be constructed as illustrated on plans and renderings submitted. The final exterior color scheme shall be submitted to City staff for review and approval prior to actually painting the structure. (Planning)

3.3. All roof mounted equipment, such as heating and air conditioning units, shall be adequately screened from public view subject to the approval of City staff. Commercial or industrial developments which adjoin residentially zoned areas shall construct noise bafflers and/or deflectors on all mechanical equipment mounted outdoors to the satisfaction of City staff. (Planning)

3.4. The transformer boxes and water valves shall be placed in locations acceptable to the Director of Community Development and shall be adequately screened from view with plant materials. (Planning)

3.5. During construction, the developer shall provide an adequate number of trash bins at a Exhibit “A”
Conditional Use Permit No. 2022-01 Page 3
Conditions of Approval
 Community Development Department  Planning Division  location acceptable to City staff. Construction bins must be maintained onsite. Bin rental shall be contracted through the City’s disposal services contractor. (Planning)

4. Signage

4.1. A comprehensive sign program for both building and freestanding monument signs shall be submitted for Planning Division approval prior to the installation of any signs. The developer shall not erect or display on the subject property any signs which have not been approved in writing by thePlanning Division. (Planning)

4.2. Changeable copy or lettering on the freestanding sign face is prohibited. (Planning)

4.3. The installation and method of sign illumination shall be reviewed and approved by the Planning Division and the Building and Safety Division. The business owner shall take the appropriate measures to ensure that the illumination of the sign shall not create glare for vehicular traffic, subject to approval by the Planning Director. All electrical conduits, timer devices, and other electrical equipment shall be buried underground or concealed within the sign. (Planning)

4.4. The masonry materials on the base of the proposed freestanding sign shall match the materials used on the garden wall located in the front landscape planter. The freestanding sign cabinet shall be painted to match the wall or trim color of the building. (Planning)

5. Landscaping

5.1. A detailed landscape and automatic irrigation plan shall be submitted to the Cypress Planning Division for review and approval at least 60 days prior to issuance of a certificate of occupancy. In addition, a bond shall be posted with Public Works to guarantee against defects in plant materials and workmanship for a period of one year from acceptance of the landscape installation. All required landscaping shall be permanently maintained in a neat and orderly condition. (Planning)

5.2. All qualifying landscape projects in the City shall comply with the City’s water efficiency ordinance as well as the water efficient requirements of the Cypress Zoning Code and the City’s Drought Response Management Plan. All irrigation shall be provided by a drip or microspray system. (Planning)

5.3. Unless otherwise specified, all required trees shall be a minimum 15-gallon in size and of a variety approved by the Director of Community Development. (Planning)

5.4. A redwood landscape retainer, a minimum of two inches by six inches in size, shall be installed along all property lines where necessary to retain the landscape planters until adjoining properties are developed. (Planning)

5.5. Landscape irrigation pipes and sprinkler heads shall be maintained in good working order so as to cover all landscaped areas. (Planning)
Exhibit “A”
Conditional Use Permit No. 2022-01 Page 4
Conditions of Approval
 Community Development Department  Planning Division 

6. Operational

6.1. The use of mechanical devices associated with the cleaning and maintenance of real property shall be conducted in accordance with the Cypress Zoning Code. (Planning)

6.2. All product and material storage shall occur within the building. Exterior storage is specifically prohibited. (Planning)

6.3. The City Council shall maintain the right to review the business hours of operation and may, subject to a public hearing, limit the hours should substantiated complaints be received that the business hours are creating an adverse impact upon neighboring properties. (Planning)

6.4. No outdoor overnight parking shall be permitted under any circumstances. (Planning)

6.5. The parking lot shall be used solely for vehicular parking, unless otherwise approved in writing by the Director of Community Development. (Planning)

6.6. The car wash hours of operation shall be limited to 7:00 A.M. to 7:00 p.m., seven days a week.

6.7. Subject to the review and approval of the Planning Director, the vacuum systems shall have sound muffling devices and shall create a tight seal when not in use.

6.8. Subject to the review and approval of the Planning Director, a silencer package shall be used on the car wash to reduce noise generation.

7. Property Maintenance

7.1. All walls, fences, and trash enclosures shall be maintained free of significant surface cracks, dry rot, warping, missing panels or blocks, which threaten the structure's structural integrity or graffiti which threatens the appearance. (Planning)

7.2. Parking lot surfaces and pedestrian walkways shall be maintained in a safe condition such that any concrete, asphalt, or other driving or walking surfaces are free of potholes, buckled or cracked surfaces, or raised areas. (Planning)

7.3. The property shall be maintained free of the accumulation of trash and debris. Trash and debris associated with the permitted uses shall be stored solely in designated trash receptacles and trash enclosures. (Planning)

7.4. Exterior building elevations shall be maintained such that the buildings are free of broken, missing or significantly cracked surface finished materials. (Planning)

7.5. The property owner shall maintain the site, the publically accessible interior, and the Exhibit “A”
Conditional Use Permit No. 2022-01 Page 5
Conditions of Approval
 Community Development Department  Planning Division  publically viewable exterior of the building(s) clear of all graffiti, including but not limited to bathrooms and dining areas if applicable. All graffiti shall be removed within 24 to 48 hours once notified in writing by the City. (Planning)

8. Fees

8.1. The applicant shall pay the following fees per Resolution No. 6182, as noted below. (Engineering)
- Building Plan Check (Prior to submittal of Plans)
- Building Permit and Inspection (Prior to Permit issuance) - Public Improvement Plan Check (Prior to submittal of Plans) - Public Improvement Permit and Inspection (Prior to Permit issuance)

8.2. Within 48 hours of the approval of this project, the applicant/developer shall deliver to the Community Development Department a check payable to the County Clerk-Recorder in the amount of $50.00 County administrative fee, to enable the City to file the Notice of Exemption pursuant to the California Environmental Quality Act (CEQA) Guidelines. (Planning)

9. Engineering – N/A

10. Landscaping within the Public Right-of-Way – N/A

11. Sewer and Wastewater– N/A

12. Street Trees – N/A

13. Street Lighting – N/A

14. Streets

14.1. Pursuant to Public Works Director review, prior to issuance of a certificate of occupancy, the applicant shall replace any deficient sidewalk or driveway approaches or cause to fix any other frontage improvement located in the public right-of-way that do not meet the requirements of the Americans with Disabilities Act (ADA) and State of California Title 24.

The applicant shall submit a plan for any improvement, in consultation with or as required by the City Engineer, and obtain a Public Works permit prior to any work within the public right-of-way. The applicant shall grant an easement to the City for pedestrian purposes for any improvement such as driveway approaches for compliance with ADA requirements. (Engineering) (ADA access within the public right-of-way)

14.2. Prior to issuance of a certificate of occupancy, the applicant shall remove and replace any existing public improvements at the development site which have existing damage, are damaged due to construction, or otherwise below current standards, to the satisfaction of the Exhibit “A”
Conditional Use Permit No. 2022-01 Page 6
Conditions of Approval
 Community Development Department  Planning Division  City Engineer. (Engineering) (Damage to Public Improvements)

15. Subdivisions – N/A

16. Traffic – N/A

17. Utilities

17.1. Prior to issuance of a certificate of occupancy, the applicant shall install all new and existing utility services underground. (Engineering) (Undergrounding Utilities)

17.2. Attention is directed that trenching and backfill in streets shall be per City of Cypress Standard Plan No. 109. Arterials shall be crossed by boring only. In public streets, lateral open cuts spaced within 20 feet of each other shall be covered with a one inch continuous asphalt concrete cap. (Engineering) (Trench Requirements)

18. Drainage – N/A

19. Storm Water Quality – National Pollutant Discharge Elimination System

19.1. The applicant shall comply with all requirements and conditions in the approved Preliminary Water Quality Management Plan (WQMP) as approved by Public Works.

Prior to the issuance of grading or building permits, the applicant shall submit a Final WQMP, consistent with the Preliminary WQMP, for review and approval by Public Works. The plan shall be in accordance with the requirements of the Santa Ana Region National Pollutant Discharge Elimination System (NPDES) Permit Order No. R8- 2009-0030 as amended by Order No.R8-2010-0062. For any changes to the site plan contained in the approved Preliminary WQMP, the applicant must first obtain site plan approval from Planning, then resubmit the WQMP to Public Works for review.

20. Building and Safety - NA

21. Security

21.1. The property address shall be clearly identified on both sides of the freestanding sign base.

A minimum of six inch lettering shall be used for the property address. The property address shall also be posted in a visible location on the building. (Police Department.)

21.2. Lighting for commercial buildings shall be as follows: (Police Department)

21.3. The address number of every commercial building shall be illuminated during the hours of darkness so that it shall be easily visible from the street. (Police Department)

21.4. All exterior commercial doors, during the hours of darkness, shall be illuminated with a minimum of one footcandle of light. All exterior bulbs shall be protected by weather and Exhibit “A”
Conditional Use Permit No. 2022-01 Page 7
Conditions of Approval
 Community Development Department  Planning Division  vandalism resistant cover(s). (Police Department)

21.5. Open parking lots, and access thereto, providing more than ten parking spaces and for use by the general public, shall be provided with a maintained minimum of one footcandle of light on the parking surface from dusk until the termination of business every operating day. (Police Department)

21.6. The landscaping and lighting plans for the project shall also be subject to review by the Cypress Police Department. (Police Department)

22. Antennas – N/A

23. Alcohol – On Sale – N/A

24. Alcohol – Off Sale – N/A

25. Fire – N/A

26. Solid Waste

26.1. The applicant shall subscribe to solid waste services from the City’s disposal services contractor with no less than one time per week service for trash, recycling, and organics recycling and require employees implement source separated recycling practices.

Sufficient trash, recycling, and organics recycling receptacles shall be placed outside to collect solid waste generated by its operation/patrons. No less than one receptacle per solid waste category shall be provided. These shall be properly maintained and not allowed to overflow. (Engineering, Water Quality) (Trash Receptacles)

26.2. The applicant shall construct new or modify its existing trash enclosure structure to house all required solid waste containers and possess a solid covered roof that prohibits stormwater to enter and then discharge from the enclosure. The applicant shall obtain all required permits from the Building Department for construction and also obtain final inspection to ensure it meets the above mentioned criteria prior to the issuance of a final certificate of occupancy. (Engineering, Water Quality) (Trash Enclosures) Effective: 6-13-2022

SECTIONS

1. General

2. Planning

3. Architectural

4. Signage

5. Landscaping

6. Operational

7. Property Maintenance
Exhibit “A”
Conditional Use Permit No. 2022-01 Page 8
Conditions of Approval
 Community Development Department  Planning Division 

8. Fees

9. Engineering

10. Landscaping in the Public Right-of-Way

11. Sewer and Wastewater

12. Street Trees

13. Street Lighting

14. Streets

15. Subdivisions

16. Traffic

17. Utilities

18. Drainage

19. Storm Water Quality

20. Building & Safety

21. Security

22. Antennas

23. Alcohol – On Sale

24. Alcohol – Off Sale

25. Fire

26. Solid Waste
Bliss Car wash
5890 Lincoln Ave
Cypress Ca.

Bliss Car wash
5890 Lincoln Ave
Cypress Ca.

D
D
NO

PARKING
VAN

EMPLOYEE

PARKING

EMPLOYEE

PARKING
>
>
>
> >
>
>
> > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
·
·
·
·
·
·
PARKING REQUIRED:

PARKING PROVIDED:

D
D
NO

PARKING
VAN

EMPLOYEE

PARKING

EMPLOYEE

PARKING

SHRUBS QTY BOTANICAL / COMMON NAME CONT WUCOLS
70 Agave x 'Blue Flame' / Blue Flame Agave 5 gal. Low
72 Anigozanthos x 'Bush Gold' / Bush Gold Kangaroo Paw 5 gal. Low 35 Arctostaphylos x 'Sunset' / Sunset Manzanita 5 gal. Low 79 Callistemon viminalis 'Better John' / Weeping Bottlebrush 5 gal. Low 24 Phormium tenax 'Rubrum' / New Zealand Flax 5 gal. Low 57 Yucca gloriosa recurvifolia 'Walbristar' / Bright Star Spanish Dagger 5 gal. Low

VINES/ESPALLIERS QTY BOTANICAL / COMMON NAME CONT WUCOLS 34 Ficus pumila / Creeping Fig 5 gal. Moderate
3 Magnolia grandiflora 'Little Gem' / Espallier Little Gem Dwarf Southern Magnolia 5 gal. Moderate

GROUND COVERS QTY BOTANICAL / COMMON NAME CONT WUCOLS SPACING 104 Senecio mandraliscae 'Blue Chalk Sticks' / Senecio 1 gal. Low 36" o.c.

PLANT SCHEDULE NORTH
0 SCALE:
10 20 30 feet
1" = 10'

TRASH ENCLOSURE
(TO BE SCREENED WITH

SHRUBS AND ESPALIERS)

CARWASH BUILDING

VACUUMS STATIONS
CLINGING VINES AT MASONRY WALL:

INSTALLED 10' O.C. TYPICAL
PROPERTY LINE (TYP.) LINCOLN AVENUE PROPERTY LINE (TYP.)

EXISTING OFFSITE LANDSCAPE

PLANTS AND STRUCTURE
(TO REMAIN)

EXISTING OFFSITE LANDSCAPE

PLANTS (TO REMAIN)

HYDROZONE/PLANTING

DESCRIPTION
PLANT
FACTOR
(PF)
IRRIG.

METHOD
Maximum Applied Water Allowance (MAWA). MAWA= (ETo) (Conversion factor) ((ETAF)(Landscape Area)) + ((1-ETAF) x SLA) (48.2) (.62) (.45 x 5,532) + (1-.45) X 0) =74,393 GALLONS Estimated Total Water use (ETWU). ETWU= (ETo)) (Conversion factor) ((ETAF) (Area)) (48.2) (.62) (1,452) = 43,392 GALLONS
IRRIG.

EFFICIENCY
(IE)
ETAF
(PF/IE)

LANDSCAPE
AREA
(Sq. Ft.)
ETAF
x AREA

ESTIMATED TOTAL

WATER USE
(ETWU)
TOTALS (A) 5,532 (B) 1,452
ETWU Total 43,392 GAL.

Total ETAF x Area
Total Area
(B) 1,452
(A) 5,532
Average ETAF
(B / A) .26
Water Efficient Landscape Worksheet
Note:

1. Average ETAF for Regular Landscape
Areas must be below .55 for residential
areas and .45 for non-residential areas.

LOW WATER USE PLANTS

MODERATE WATER USE PLANTS

REGULAR LANDSCAPE AREA
.2
.5
.81
.81
DRIP
DRIP
5,347
185
.25
.62
1,337
115
39,955 GAL.
3,437 GAL.

ETAF Calculations
Regular Landscape Areas

GENERAL NOTES

1. All landscape planting areas shall receive a minimum 3"-4" layer of organic mulch top dressing.

2. A soils fertility analysis report and recommendations by a certified soils analysis laboratory shall be completed prior to construction. Soil samples shall be collected after site rough grading has been completed.

3. All trees, shrubs and groundcover shall be irrigated with a drip system, smart controller , weather sensor, etc.and shall meet City of Cypress Water Efficient standards/regulations.

4. All new trees located within 7' of pavement or permanent structure shall have a root barrier.

COMPLIANCE STATEMENT
I have complied with the criteria of the water use ordinance and applied them accordingly for the efficient use of water in the landscape design plan. 3-21-22

COMMON DRIVE ISLE
LIGHT STANDARD (TYP.)

EXISTING TREES TO REMAIN

EXISTING PLANT LEGEND
EXISTING TREE TO REMAIN (TYP.)
L1

LANDSCAPE
PLAN
DRAWN BY:

CHECKED BY:

ARCH. PROJECT NO.:

SHEET NAME:

SHEET NUMBER:

REV DATE DESCRIPTION
SEAL:

CONSULTANT: BLISS CAR WASH 5890 LINCOLN AVENUE CYPRESS, CA 90630 BCW21005
38 EXECUTIVE PARK
IRVINE, CA 92614
SUITE 310

JEFF LIEDERMAN, ARCHITECT
(949) 430-7051
[email protected]
Contact: Jeff Liederman
01/03/22 PRELIMINARY DESIGN
03/25/22 FIRST SUBMITTAL CUP

OLIVE STREET

LANDSCAPE ARCHITECTURE
P.O. Box 2083
Petaluma CA 94952
707-280-8990
OliveStreetLandscape.com
[email protected]

AC
Eldorado Stone
Ledgecut 33 - Beach pebble

BENJAMIN MOORE
1392

FIRE AND ICE
Conditional Use Permit No. 2022-01

VICINITY MAP
Project Site
5890 Lincoln Avenue

ORANGE AVENUE

WALKER STREET

VALLEY VIEW STREET
N

LINCOLN AVENUE
PL-5 Rev. 2011

NOTICE OF EXEMPTION
TO: Office of Planning and Research FROM: City of Cypress 1400 Tenth Street, Room 121 5275 Orange Avenue
Sacramento, CA 95814 Cypress, CA 90630
X County Clerk-Recorder
Public Services Division
P.O. Box 238
Santa Ana, CA 92702
Project Title
Conditional Use Permit No. 2022-01
Project Location - Specific
5890 Lincoln Avenue
Project Location - City
Cypress
Project Location - County
Orange
Description of Nature, Purpose, and Beneficiaries of Project A request to replace an existing full-service car wash with a new self-service car wash facility, owned and operated Bliss Car Wash.

Name of Public Agency Approving Project
City of Cypress
Name of Person or Agency Carrying Out Project (Applicant’s Name and Address) Mr. Jeff Liederman, PM Design Group, 38 Executive Park, Suite 310, Irvine, CA 92614 Exempt Status: (Check One)
Ministerial (Sec. 21080(b)(1);15268);
Declared Emergency (Sec. 21080(b)(3);15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
X Categorical Exemption, Class 2.b. - Replacement Construction (Sec. 15302(b)) Reasons why project is exempt:

The project consists of the replacement/reconstruction of a commercial structure with a new structure of substantially the same size, purpose and capacity.

Lead Agency Contact Person
Ms. Kori Sanders, Associate Planner
Area Code
(714)
Telephone Number
229-6724
If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a notice of exemption been filed by the public agency approving the project? Yes No ________
_________________________________ __________________________ ______________ Date Received for Filing at OPR Signature Date
Planning Director_____
Title
Signed by Lead Agency
Signed by Applicant
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 3.

FROM: Alisha Farnell, City Clerk
DATE: 06/13/2022
SUBJECT: Receive and File Public Comments Submitted for the June 13, 2022 City Council Meeting

RECOMMENDATION
Receive and file submitted public comments.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 5.

FROM: Alisha Farnell, City Clerk
DATE: 06/13/2022
SUBJECT: Approve Minutes - Meetings of April 25, 2022, May 9, 2022, May 11, 2022 and May 12, 2022

RECOMMENDATION
Approve as submitted.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
April 25, 2022 City Council Meeting Minutes
May 9, 2022 City Council Meeting Minutes
May 11, 2022 Special City Council Meeting Minutes
May 12, 2022 Special City Council Meeting Minutes

REGULAR MEETING

CYPRESS CITY COUNCIL
APRIL 25, 2022
6:30 P.M.

A regular meeting of the Cypress City Council was called to order at 6:34 p.m. by Mayor Pro Tem Hertz Mallari in the Council Chambers, 5275 Orange Avenue, Cypress, California.

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District
Mayor Paulo Morales - ABSENT
Mayor Pro Tem Anne Hertz-Mallari
Council Member Frances Marquez
Council Member Scott Minikus
Council Member Jon Peat

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
City Clerk Alisha Farnell

ORAL COMMUNICATIONS
None.

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Paragraph (2) of Subdivision (d) of Government Code Section 54956.9: (One case).

Claim by Californians Aware
Mayor Pro Tem Hertz-Mallari recessed the meeting at 6:39 p.m.

RECONVENE
Mayor Pro Tem Hertz-Mallari reconvened the City Council meeting at 7:10 p.m.

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District
Mayor Paulo Morales – ABSENT
Mayor Pro Tem Anne Hertz-Mallari
Council Member Frances Marquez
Council Member Scott Minikus
Council Member Jon Peat

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administrative Services Matt Burton Director of Public Works Doug Dancs
Director of Recreation and Community Services Jeff Draper Chief of Police Mark Lauderback
Planning Director Alicia Velasco
City Clerk Alisha Farnell
Communications and Marketing Analyst Brooke Straus
PLEDGE OF ALLEGIANCE Council Member Marquez led the Pledge of Allegiance.

INVOCATION Pastor Trevor Cooper, First Baptist Church of Cypress, led the Invocation.

REPORT OF WORKSHOP AGENDA/CLOSED SESSION
The City Attorney reported that the City Council met in Closed Session and held a discussion on the item listed on the Closed Session agenda, namely Conference with Legal Counsel, one item of anticipated litigation under the heading significant exposure to litigation, a claim by Californians Aware. He stated a copy of the letter from Californians Aware is available for viewing. He further reported that following a discussion of that threat of litigation matter, it was moved by Council Member Peat, and seconded by Council Member Minikus, to direct the rejection of the claim by Californians Aware and declining the Brown Act demand and presenting a written rejection letter from the City Attorney’s office on the next City Council agenda for review and receipt of the communication.

The City Attorney reported that the motion was carried by the following roll call vote:

AYES: 3 COUNCIL MEMBERS: Minikus, Peat and Hertz-Mallari NOES: 1 COUNCIL MEMBERS: Marquez
ABSENT: 1 COUNCIL MEMBERS: Morales

PRESENTATIONS
Mayor Pro Tem Hertz-Mallari stated the first presentation item, Recognition of Anaheim Union High School District Student Ambassadors, would be delayed to later in the agenda to accommodate the students’ arrival.

Mayor Pro Tem Hertz-Mallari presented Business Environmental Awards to Westmont Cypress Assisted Living, Dominic’s Ristorante Italiano, Casa Grande Apartment Homes, McDonald’s and John’s Restaurant.

Mayor Pro Tem Hertz-Mallari invited Orange County Fire Authority Division Chief Steve Dohman forward to introduce himself to the community.

ORAL COMMUNICATIONS (Limited to 30 minutes – three minutes per speaker, unless extended by the City Council)
Council Member Minikus provided a report on the community meeting at Maple Grove Park North regarding the proposed park restroom.

Julie Foy, Cypress, spoke regarding the Maple Grove Park North community meeting.

Derrick Balsillie, Cypress, spoke regarding Maple Grove Park North community meeting.

David Burke, Cypress, spoke regarding the Maple Grove Park North community meeting, Closed Session and the community survey.

Katie Shapiro, Cypress, spoke regarding communication issues with the City.

Marilyn Reames, Cypress, spoke regarding traffic signal concerns at Katella Avenue and Enterprise Drive.

Katherine Kim, Cypress, spoke about regarding regulations on the placement of trash cans.

Robin Itzler, Cypress, spoke regarding the solid waste franchise amendment and in opposition to district elections.

Clare Chu, Cypress, spoke regarding Lexington Park, police and fire services and the California Voting Rights Act challenge.

Harumi Lucak, Cypress, spoke of the City’s recent accomplishments and threats of litigation.

Roberta O’Toole, Cypress, spoke regarding recent community events, the Community Emergency Response Team (CERT), and expressed appreciation for the City’s accomplishments and the current and past City Councils.

The City Manager announced Oral Communication had reached its 30 minute limit and stated the City Council could take action to extend Oral Communications.

It was moved by Council Member Peat, and seconded by Council Member Minikus, to extend the period of Oral Communications to encompass all in person and online speakers.

The motion was carried by the following roll call vote:

AYES: 4 COUNCIL MEMBERS: Marquez, Minikus, Peat and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Morales
Beth Culver, Cypress, spoke regarding communications obtained under the California Public Records Act.

Shelley Henderson, Cypress, spoke regarding upcoming community events.

Helen Le, Cypress, spoke regarding bulky item pick-ups for multi-family properties and district elections.

PUBLIC HEARING
Item No. 1: Approve Conditional Use Permit No. 2022-02 to Permit the Sale of Beer and Wine at an Existing Restaurant at 4959-A Katella Avenue Mayor Pro Tem Hertz-Mallari asked Council Members to disclose communication with anyone relevant to the item.

No communications were disclosed.

The Planning Director provided a report on this item.

Mayor Pro Tem Hertz-Mallari opened the public hearing.

The applicant agreed to the Conditions of Approval for the Conditional Use Permit and provided brief remarks regarding the project.

There were no public comments.

Mayor Pro Tem Hertz-Mallari closed the public hearing.

It was moved by Council Member Peat, and seconded by Council Member Minikus, to approve the Resolution approving Conditional Use Permit No. 2022-02, with conditions, and confirm the project is exempt from California Environmental Quality Act requirements.

The motion was carried by the following roll call vote:

AYES: 4 COUNCIL MEMBERS: Marquez, Minikus, Peat and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Morales
RESOLUTION NO. 6883

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CYPRESS APPROVING CONDITIONAL USE PERMIT NO. 2022-
02, A REQUEST TO ADD ON-SALE BEER AND WINE TO AN
EXISTING RESTAURANT LOCATED AT 4959 KATELLA AVENUE,

SUITE A, WITHIN THE PBP - PLANNED BUSINESS PARK ZONE

AND FURTHER DETERMINING THAT PUBLIC CONVIENCE
WOULD BE SERVED WITH THE ISSUANCE OF A TYPE 41

ALCOHOLIC BELVERAGE CONTROL LICENSE
Item No. 2: Introduce an Ordinance Approving the Police Department’s Military Equipment Policy
Mayor Pro Tem Hertz-Mallari asked Council Members to disclose communication with anyone relevant to the item.

No communications were disclosed.

The Chief of Police provided a report on this item.

Council Member Marquez commented on this item.

Mayor Pro Tem Hertz-Mallari opened the public hearing.

Bob Youngsma, Cypress, spoke in support of this item.

Mayor Pro Tem Hertz-Mallari closed the public hearing.

It was moved by Council Member Marquez, and seconded by Council Member Minikus, to introduce for first reading an Ordinance, by title only, approving the Police Department’s Military Equipment Policy.

The City Attorney read the title of the Ordinance.

The motion was carried by the following roll call vote:

AYES: 4 COUNCIL MEMBERS: Marquez, Minikus, Peat and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Morales

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item.

Council Member Minikus stated that Agenda Item No. 11, the Warrant Register, includes electronic fund transfer No. 10863 for $286.18 as reimbursement for medical coverage he is entitled to receive as a CalPERS annuitant. He indicated that in voting for any motion to approve the Warrant Register, he would not be voting on electronic fund transfer No. 10863 for the reason disclosed.

It was moved by Council Member Peat, and seconded by Council Member Marquez, to approve Consent Calendar Items No. 3 through 11.

The motion was carried by the following roll call vote:

AYES: 4 COUNCIL MEMBERS: Marquez, Minikus, Peat and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Morales
Item No. 3: Receive and File Public Comments Submitted for the April 25, 2022 City Council Meeting
Recommendation: Receive and file submitted public comments.

Item No. 4: Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading Item No. 5: Approve Minutes - Meeting of March 14, 2022 Recommendation: Approve as submitted.

Item No. 6: Accept the Arterial Rehabilitation, Project 297 Recommendation:

1. Accept the Arterial Rehabilitation, Project 297, in the amount of $748,374.07 and approve the final payment of $37,418.72 to RJ Noble Company; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

Item No 7: Approve Filling a Vacancy on the Traffic Commission through the 2022 Commissioner Recruitment
Recommendation: Approve filling a vacancy on the Traffic Commission through the 2022 Commissioner recruitment.

Item No. 8: Proclaim the Month of May 2022 as Water Safety Month Recommendation: Proclaim the month of May 2022 as Water Safety Month.

Item No. 9: Receive and File the Investment Report for the Month Ended March 31, 2022
Recommendation: Receive and file the attached investment report.

Item No. 10: Receive and File the Strategic Plan Six-Month Objectives Update Recommendation: Receive and file the strategic plan six-month objectives update.

Item No. 11: Approve Register of Warrants, Transfers, and Wires Issued for the Period of March 26, 2022 through April 8, 2022
Recommendation: Approve the attached payment register summarized below for the period of March 26, 2022 through April 8, 2022
• Electronic Funds Transfers 10847 through 10989
• Warrants 59129 through 59225
• Payroll Transfers W1472

NEW BUSINESS
None.

PRESENTATIONS (cont.)
Mayor Pro Tem Hertz-Mallari recognized Anaheim Union High School District Student Ambassadors from Oxford Academy and Cypress High School.

ORAL COMMUNICATIONS (Five minutes per speaker, unless extended by the City Council)
Helen Le, Cypress, spoke regarding multi-family trash accounts, bulky-item pick-ups.

Beth Culver, Cypress, spoke regarding communications obtained under the California Public Records Act.

Clare Chu, Cypress, spoke regarding City Council behavior.

COUNCIL MEMBER REPORTS AND REMARKS
Council Member Minikus:

Stated he plans to recommend the City develop a neighborhood outreach process for any significant enhancements or investments that might impact a specific neighborhood in the City. Requested a diversity and inclusion proclamation be placed on the May 9 agenda for City Council consideration. Requested an item be placed on the May 9 agenda that will allow City Council to consider ordering an audit of Valley Vista Services financial records and customer service levels.

Council Member Marquez:

Participated in National Library Week event at the Cypress Library. Attended Assemblywoman Quirk-Silva’s Community Conversation event. Attended a Friends of Cypress Library event. Attended the Cypress School District Every Student Succeeding event. Attended the volunteer recognition dinner at the Cypress Senior Center. Attended the Cypress Art League’s Spring Art Show. Attended a P.A.C.E. graduation and playground grand opening ceremony at Grace Christian School. Announced the opening of a new Memorial Care facility. Spoke regarding the Maple Grove Park North community meeting. Stated she plans to propose an ordinance for a fair and competitive bidding process on contracts at the next meeting.

Council Member Peat:

Participated in the Maple Grove Park North community meeting. Attended the Every Child Succeeding event at Cypress School District. Spoke regarding the Valley Vista Services franchise agreement, politics, and communications obtained under the California Public Records Act referenced during Oral Communications.

Mayor Pro Tem Hertz-Mallari:

No report.

CITY MANAGER REMARKS
No report.

ADJOURNMENT
A motion was made by Council Member Peat, and seconded by Council Member Minikus, and carried 3-1-1, with Council Member Marquez voting No and Mayor Morales absent, to adjourn the meeting at 9:38 p.m. The next Regular Council Meeting will be held on Monday, May 9, 2022, beginning at 5:30 p.m. inside the Executive Board Room. _______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

REGULAR MEETING

CYPRESS CITY COUNCIL
MAY 09, 2022
5:00 P.M.

A regular meeting of the Cypress City Council was called to order at 5:00 p.m. by Mayor Morales in the Council Chambers, 5275 Orange Avenue, Cypress, California.

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District
Mayor Paulo Morales
Mayor Pro Tem Anne Hertz-Mallari
Council Member Frances Marquez
Council Member Scott Minikus
Council Member Jon Peat

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administrative Services Matt Burton Director of Public Works Doug Dancs
Director of Recreation and Community Services Jeff Draper Chief of Police Mark Lauderback
Planning Director Alicia Velasco
City Clerk Alisha Farnell
Assistant Director of Finance and Administrative Services Donna Mullally City Engineer Nick Mangkalakiri
Maintenance Superintendent Kirk Streets
Recreation Manager Ian Kokot

ORAL COMMUNICATIONS
None.

WORKSHOP SESSION
Receive and File Fiscal Year 2022-23 Proposed Budget and Capital Improvement Program
The City Manager provided introductory comments. The Director of Finance and Administrative Services and Director of Public Works provided reports on this item.

City Council discussion ensued.

No action was taken.

Mayor Morales recessed the meeting at 6:30 p.m.

Mayor Morales reconvened the meeting at 6:34 p.m.

CLOSED SESSION

CONFERENCE WITH LABOR NEGOTIATOR
Pursuant to Government Code Section 54957.6
Agency Negotiators: City Manager and Director of Finance and Administrative Services Employee Group: Cypress Police Officers Association
Mayor Morales recessed the meeting at 6:35 p.m.

RECONVENE
Mayor Morales called to order the 7:00 p.m. session of the City Council meeting at 7:24 p.m.

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administrative Services Matt Burton Director of Public Works Doug Dancs
Director of Recreation and Community Services Jeff Draper Chief of Police Mark Lauderback
Planning Director Alicia Velasco
City Clerk Alisha Farnell
PLEDGE OF ALLEGIANCE Council Member Peat led the Pledge of Allegiance.

INVOCATION Pastor Daniel Baik, Miracleland Baptist Church, led the Invocation.

REPORT OF WORKSHOP AGENDA/CLOSED SESSION
The City Attorney reported that the City Council held a Workshop Session to receive and file the Fiscal Year 2022-23 Proposed Budget and Capital Improvement Program. He further stated the City Council met in Closed Session regarding Conference with Labor Negotiator concerning the employee group Cypress Police Officers Association, he reported the City Council held a discussion and no further reportable action was taken.

PRESENTATION
The City Council presented a Proclamation to the Cypress Police Department proclaiming the week of May 15-21, 2022 as “National Police Week.”
The City Council recognized Officer Nicole Ghattas as Cypress’ Top Vehicle Theft Recovery Officer of the Year.

Director of Recreation and Community Services introduced Recreation Supervisor Courtney Powers, Recreation Coordinator Lauren Hull, Recreation Coordinator Alexis Corral, Recreation Coordinator Ervy Rodriguez and Recreation Manager Ian Kokot.

ORAL COMMUNICATIONS (Limited to 30 minutes – three minutes per speaker, unless extended by the City Council)
Julie Foy, Cypress, spoke regarding agenda item no. 12.

Robin Itzler, Cypress, spoke regarding the solid waste franchise agreement and agenda item no. 13.

Katie Shapiro, Cypress, spoke regarding item no. 13 and transparency.

Carolyn Balagot, Cypress, spoke regarding agenda item no. 13.

Bob Youngsma, Cypress, spoke regarding solid waste franchise agreement.

Steve Pitman, National Alliance on Mental Illness (NAMI), spoke regarding mental illness.

Sylvia Munoz, Cypress, spoke regarding comments made about her daughter during a City Council meeting.

Beth Culver, Cypress, spoke regarding propaganda and agenda item no. 13.

Harumi Lucak, Cypress, spoke regarding Assembly candidate Soo Yoo.

Brooke Nafarrete, Cypress, spoke regarding agenda items no. 13 and no. 14.

Glen Button, Cypress, spoke regarding Senate candidate Janet Nguyen and Assembly candidate Soo Yoo.

W. Maxey, spoke regarding public comments made about Council Members, political advertisements, and agenda item no. 14.

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item.

Council Member Marquez requested to pull items no. 4, 8 and 10.

It was moved by Mayor Pro Tem Hertz-Mallari, and seconded by Council Member Minikus, to approve Consent Calendar Items No. 1 through 3, 5 through 7 and 9.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Marquez, Minikus, Peat, Hertz-Mallari and Morales NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Item No. 1: Receive and File Public Comments Submitted for the May 9, 2022 City Council Meeting
Recommendation: Receive and file submitted public comments.

Item No. 2: Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading Item No. 3: Approve Minutes - Meeting of March 28, 2022 Recommendation: Approve as submitted.

Item No. 5: Approve Senate Bill 1 Road Maintenance and Rehabilitation Account Funding and Project List
Recommendation: Adopt a Resolution approving the FY 2022-23 project list for Senate Bill 1 (SB1) Road Maintenance and Rehabilitation Account (RMRA) funding.

RESOLUTION NO. 6885

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CYPRESS ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR
2022-23 FUNDED BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
Item No 6: Proclaim the Week of May 15-21, 2022 as National Police Week Recommendation: Proclaim the week of May 15-21, 2022 as National Police Week.

Item No. 7: Proclaim the Week of May 15-21, 2022 as National Public Works Week Recommendation: Proclaim the week of May 15-21, 2022 as National Public Works Week.

Item No. 9: Second Reading and Adoption of an Ordinance Approving the Police Department’s Military Equipment Policy
Recommendation: Approve the second reading and adopt an Ordinance, by title only and waive further reading, approving the Police Department’s Military Equipment Policy.

ORDINANCE NO. 1194

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CYPRESS, CALIFORNIA APPROVING THE CYPRESS POLICE
DEPARTMENT’S MILITARY EQUIPMENT USE POLICY

END OF CONSENT CALENDAR
Regarding Item No. 4: Approve the City Engineer’s Report and Renew Cypress Corporate Center Landscape Maintenance District No. 1 (Stanton Channel Berm) Council Member Marquez commented on this item.

The Public Works Director provided information.

It was moved by Council Member Peat, and seconded by Council Member Minikus, to approve the City Engineer’s Report for the Cypress Corporate Center Landscape Maintenance District No. 1 for Fiscal Year 2022-23; and adopt the attached Resolution declaring the City Council’s intention to order the renewal of Cypress Corporate Center Landscape Maintenance District No. 1 for maintenance of the landscape and irrigation system located at the berm on the north side of the Stanton Channel and setting a public hearing for June 27, 2022.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Marquez, Minikus, Peat, Hertz-Mallari and Morales NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
RESOLUTION NO. 6884

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CYPRESS, CALIFORNIA, DECLARING ITS INTENTION TO

ORDER THE RENEWAL OF CYPRESS CORPORATE CENTER
LANDSCAPE MAINTENANCE DISTRICT NO. 1 FOR FISCAL
YEAR 2022-23, PURSUANT TO THE LANDSCAPING AND
LIGHTING ACT OF 1972, AND FIXING A TIME AND PLACE FOR

HEARING OBJECTIONS THERETO
Regarding Item No. 8: Receive the Response Letter to the Brown Act Demand from Californians Aware
Council Member Marquez commented on this item.

It was moved by Council Member Peat, and seconded by Council Member Minikus, to receive the response letter to the Brown Act demand from Californians Aware.

The motion was carried by the following roll call vote:

AYES: 4 COUNCIL MEMBERS: Minikus, Peat, Hertz-Mallari and Morales NOES: 0 COUNCIL MEMBERS: None
ABSENT: 1 COUNCIL MEMBERS: Marquez
Regarding Item No. 10: Approve Register of Warrants, Transfers, and Wires Issued for the Period of April 9, 2022 through April 22, 2022 Council Member Marquez commended on this item.

The City Manager provided information.

It was moved by Council Member Peat, and seconded by Council Member Minikus, to approve the attached payment register summarized below for the period of April 9, 2022 through April 22, 2022: Electronic Funds Transfers 10990 through 11000, Warrants 59226 through 59343, Payroll Transfers W1473.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Marquez, Minikus, Peat, Hertz-Mallari and Morales NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None

NEW BUSINESS
Item No. 11: Introduce an Ordinance Establishing Regulations Prohibiting the Unlawful Possession of Catalytic Converters
The Chief of Police provided a report on this item.

City Council discussion ensued.

It was moved by Council Member Peat, and seconded by Council Member Marquez, to introduce the first reading, by title only, an Ordinance establishing regulations prohibiting the unlawful possession of catalytic converters.

The City Attorney read the title of the Ordinance.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Marquez, Minikus, Peat, Hertz-Mallari and Morales NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Item No. 12: Consider and Provide Direction on the Maple Grove Park North Restroom Capital Improvement Project
The Director of Public Works provided a report on this item.

City Council discussion ensued.

It was moved by Council Member Peat, and seconded by Council Member Minikus, to rescind the project and not move forward with the development of a restroom at Maple Grove Park North.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Marquez, Minikus, Peat, Hertz-Mallari and Morales NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None

ITEMS FROM CITY COUNCIL MEMBERS
Item No. 13: Consider a Proclamation in Support of Diversity and Inclusion Council Member Minikus commented on this item.

It was moved by Council Member Minikus, to approve a proclamation in support of diversity and inclusion.

City Council discussion ensued.

An alternate motion was made by Mayor Morales, and seconded by Council Member Minikus, to continue this item to a future City Council meeting.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Marquez, Minikus, Peat, Hertz-Mallari and Morales NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Item No 14: Consider Directing the City Manager to Audit the Solid Waste Franchise
Council Member Minikus commented on this item.

City Council discussion ensued.

The City Attorney provided information.

Council Member Minikus requested to pull the item from consideration.

No action was taken.

ORAL COMMUNICATIONS (Five minutes per speaker, unless extended by the City Council)
Carolyn Balagot, Cypress, spoke regarding agenda item no. 13.

Brooke Nafarrete, Cypress, spoke regarding agenda item no. 14, communication between residents and City Council, and racial language contained in communications obtained under the California Public Records Act.

Derek Balsillie, Cypress, spoke regarding agenda item no. 12.

David Burke, Cypress, spoke regarding agenda item no. 13 and continuing discussions of issues.

Helen Le, Cypress, spoke regarding agenda item no. 13 and the solid waste franchise agreement.

COUNCIL MEMBER REPORTS AND REMARKS
Council Member Minikus:

No Report.

Council Member Marquez:

Attended the Southern California Association of Governments regional conference.

Attended P.A.C.E graduation ceremonies at King Elementary School and St. Irenaeus Parish School. Requested the City to explore options to increase distribution of the EventNews Enterprise newspaper. Stated she will return to the next meeting with ideas for an ordinance to go out to bid competitively and fairly. Addressed public comments made during Oral Communications.

Council Member Peat:

Met with a Cypress resident to discuss and answer questions regarding the Valley Vista Services franchise agreement. Attended the P.A.C.E graduation ceremony at King Elementary School. Submitted a white paper regarding the solid waste franchise to the City Clerk in response to a Public Records Act request. Expressed opposition to the City funding the distribution of a privately-owned newspaper.

Mayor Pro Tem Hertz-Mallari:

No report.

Mayor Morales:

Attended the Youth Action Committee recognition banquet. Expressed opposition to City funding the distribution of a privately-owned newspaper.

CITY MANAGER REMARKS
The City Attorney addressed public comments made during Oral Communications.

The City Manager announced dates for the upcoming Commission applicant interviews, Police Department Open House, and Valley Vista Services organics recycling workshops.

Reported the City held an employee recognition event at Lexington Park and thanked employees for their service to the community.

ADJOURNMENT
A motion was made by Council Member Peat, and seconded by Council Member Marquez, and unanimously carried 5-0, to adjourn the meeting at 9:33 p.m. The next Regular Council Meeting will be held on Monday, May 23, 2022, beginning at 5:30 p.m. in the Executive Board Room.
_______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

SPECIAL MEETING

CYPRESS CITY COUNCIL
MAY 11, 2022
5:00 P.M.

A special meeting of the Cypress City Council was called to order at 5:00 p.m. by Mayor Morales in the Council Chambers, 5275 Orange Avenue, Cypress, California.

STAFF PRESENT
City Clerk Alisha Farnell
Office Assistant Christina Dizol
ORAL COMMUNICATIONS (Limited to three minutes per speaker, unless extended by the City Council)
None.

CONSENT CALENDAR
Item No. 1: Receive and File Public Comments Submitted for the May 11, 2022 Special City Council Meeting
Recommendation: Receive and file submitted public comments.

The City Clerk reported that no public comments were submitted.

No action was taken.

DISCUSSION ITEM
Item No. 2: Commission Applicant Interviews
The City Council conducted interviews of applicants for the following Commission appointments:
• Recreation and Community Services Commission – Two Full-Term Appointments • Senior Citizens Commission – Two Full-Term Appointments, One Partial-term Appointment
• Traffic Commission – One Full-Term Appointments, One Partial-Term Appointment
No action was taken.

ADJOURNMENT
Mayor Morales adjourned the meeting at 6:46 p.m. to an adjourned Special Meeting, to be held on Thursday, May 12, 2022, beginning at 5:00 p.m. in the Executive Board Room. _______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

SPECIAL MEETING

CYPRESS CITY COUNCIL
MAY 12, 2022
5:00 P.M.

A special meeting of the Cypress City Council was called to order at 5:06 p.m. by Mayor Morales in the Council Chambers, 5275 Orange Avenue, Cypress, California.

STAFF PRESENT
City Clerk Alisha Farnell
Office Assistant Christina Dizol
ORAL COMMUNICATIONS (Limited to three minutes per speaker, unless extended by the City Council)
None.

CONSENT CALENDAR
Item No. 1: Receive and File Public Comments Submitted for the May 12, 2022 Special City Council Meeting
Recommendation: Receive and file submitted public comments.

The City Clerk reported that no public comments were submitted.

No action was taken.

ADJOURNMENT
A motion was made by Mayor Pro Tem Hertz-Mallari, seconded by Council Member Minikus, and unanimously carried 5-0, to adjourn the meeting at 7:29 p.m. The next meeting will be an adjourned Regular Meeting will be held on Monday, May 23, 2022, beginning at 5:30 p.m. in the Executive Board Room.
_______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 6.

FROM: Douglas Dancs, Director of Public Works
DATE: 06/13/2022
SUBJECT: Accept Organic Recycling Local Assistance Grant

RECOMMENDATION

1. Accept a CalRecycle Organic Recycling Local Assistance Grant; and

2. Increase estimated revenues by $69,242 in the City's General Fund.

DISCUSSION
The City Council approved a Resolution permitting the City to apply for California Department of Resources Recycling and Recovery (CalRecycle) grants as they become available for recycling and solid waste programs (see attachment). CalRecycle recently awarded the City a one-time $69,424 grant to assist with organic recycling.

Grant proceeds may be expended on personnel and consulting services related to organic recycling implementation between May 2022 and May 2024. The one-time grant proceeds will pay for a portion of the cost of the additional public education and outreach, exemption waiver program, reporting and compliance monitoring required by CalRecycle over the next two fiscal years and there are no matching requirements.

BUDGET IMPACT
The Organic Recycling Local Assistance Grant Program provides $69,424 in one-time General Fund revenues for organic recycling implementation. Additional implementation costs above the grant award will be funded by the compliance monitoring fee.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution
124
RESOLUTION NO. 6876

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS

AUTHORIZING SUBMITTAL OF AN APPLICATION FOR PAYMENT

PROGRAMS AND RELATED AUTHORIZATIONS

THE CITY COUNCIL OF THE CITY OF CYPRESS HEREBY RESOLVES, DETERMINES, AND ORDERS AS FOLLOWS THAT:

WHEREAS, pursuant to Public Resources Code sections 48000 et seq., 14581, and 42023. 1 ( g). CalRecycle has established various payment programs to make payments to qualifying jurisdictions; and
WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the payment programs; and WHEREAS CalRecycle' s procedures for administering payment programs require, among other things, an applicant' s governing body to declare by resolution certain authorizations related to the administration of the payment program.

NOW, THEREFORE, the City of Cypress is authorized to submit an application to CalRecycle for any and all payment programs offered; and BE IT FURTHER RESOLVED that the Public Works Director or designee are hereby authorized as Signature Authority to execute all documents necessary to implement and secure payment; and
BE IT FURTHER RESOLVED that this authorization is effective until rescinded by the Signature Authority or this Governing Body.

PASSED AND ADOPTED by the City Council of the City of Cypress, and acting as ex-officio governing Board of Directors of the Cypress Recreation and Park District, at a regular meeting held on the 14th day of February, 2022. iaidah

MAYOR OF THE CITY OF CYPRESS
ATTEST:
p
ll _
p
l

CITY CL RK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 14th day of February, 2022, by the following roll call vote:

AYES: 4 COUNCIL MEMBERS: Minikus, Peat, Hertz-Mallari and Morales NOES: 1 COUNCIL MEMBERS: Marquez
ABSENT: 0 COUNCIL MEMBERS: None

CITY CLERK OF HE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 7.

FROM: Matt Burton, Director of Finance and Administrative Services DATE: 06/13/2022
SUBJECT: Adopt Annual Statement of Investment Policy

RECOMMENDATION
Adopt a Resolution approving the Annual Statement of Investment Policy.

DISCUSSION
The City Council’s investment philosophy is designed to ensure funds are always safe and available when needed. The Annual Statement of Investment Policy (policy) clearly states the policies and procedures for the prudent investment of the City’s cash. It outlines investment-related activities which represent an effective cash management and short-term investment plan. The existing policy continues to be consistent with the City’s investment objectives. As a result, there are no substantive changes to the attached investment policy; only minor language updates have been made for FY 2022-23.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution
FY 2022-23 Statement of Investment Policy
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,

AND ACTING AS THE EX OFFICIO GOVERNING BOARD OF

DIRECTORS OF THE CYPRESS RECREATION AND PARK DISTRICT,

ADOPTING THE ANNUAL STATEMENT OF INVESTMENT POLICY
WHEREAS, Section 53646 of the Government Code of the State of California establishes and requires the City Treasurer to annually render to the City Council at a public meeting a Statement of Investment Policy; and
WHEREAS, the City Treasurer has heretofore prepared and submitted to the City Council a proposed Statement of Investment Policy, pursuant to law; NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Cypress, and acting as the ex officio governing Board of Directors of the Cypress Recreation and Park District, hereby adopts the Annual Statement of Investment Policy.

PASSED AND ADOPTED by the City Council of the City of Cypress, and ex officio governing Board of Directors of the Cypress Recreation and Park District, at a regular meeting held on the 13
th day of June, 2022.

MAYOR OF THE CITY OF CYPRESS
ATTEST:

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 13
th day of June, 2022, by the following roll call vote:

AYES: 0 COUNCILMEMBERS:

NOES: 0 COUNCILMEMBERS:

ABSENT: 0 COUNCILMEMBERS:

CITY CLERK OF THE CITY OF CYPRESS

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
FISCAL YEAR 2022-23

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
2 Table of Contents
STATEMENT OF INVESTMENT POLICY............................................................3

1. Purpose ......................................................................................................3

2. Scope .........................................................................................................3

3. Prudence ....................................................................................................3

4. Objective ....................................................................................................4

5. Delegation of Authority ...............................................................................4

6. Ethics and Conflicts of Interest ...................................................................5

7. Authorized Financial Dealers and Institutions.............................................5

8. Authorized and Suitable Investments .........................................................5

9. Review of Investment Portfolio ...................................................................8

10.Investment Pools/Mutual Funds .................................................................8

11.Collateralization..........................................................................................8

12.Safekeeping and Custody ..........................................................................9

13.Maximum Maturities ...................................................................................9

14.Internal Controls .........................................................................................9

15.Reporting..................................................................................................10

16.Investment Policy Adoption ......................................................................10

17.Indemnification .........................................................................................10 INVESTMENT GUIDELINES AND STRATEGY.................................................11 I.Guidelines ................................................................................................11 II.Strategy ....................................................................................................13 III.Audit .........................................................................................................13 INVESTMENT PROCEDURES – INTERNAL CONTROL GUIDELINES ...........14 I.Objectives of Internal Control ...................................................................14 II.Limitation of Internal Control.....................................................................14 III.Elements of Internal Control .....................................................................14 IV.Cash Controls...........................................................................................15 SEGREGATION OF RESPONSIBILITIES OF THE TREASURY FUNCTIONS.16 GLOSSARY OF INVESTMENT TERMINOLOGY...............................................17

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
3 PURPOSE
This purpose of this policy is to provide guidelines for the prudent investment of unexpended funds to maximize security while meeting daily cash flow demands and providing a market rate of return. The investment practices and policies are based on compliance with State law and prudent money management principles.

SCOPE
This Statement of Investment Policy (Policy) covers all funds under the City’s control, including the Cypress Recreation and Park District and the Successor Agency to the dissolved Cypress Redevelopment Agency, collectively referred to herein as the City’s investment portfolio, or portfolio.

This Policy also applies to any bond proceeds. If a bond's trust agreement is more restrictive than this Policy, then the trust agreement supersedes this Policy. The City may delegate its investment responsibility to the fiscal agent to ensure compliance with the bond covenants when managing bond proceeds. Borrowing money solely for the purpose of investing and earning arbitrage is specifically prohibited.

The Public Agencies Post-Employment Benefits Trust (PARS Trust) is managed under separate investment goals, objectives, and management policies, and as such is specifically excluded from this policy. Additional information can be found in the Investment Guidelines Document for the PARS Trust.

PRUDENCE
The City strives to maintain the level of investment of all idle funds as near 100% as possible. All temporarily pooled idle cash is invested under the Prudent Investor Standard, as set forth in California Government Code Section 53600.3:
"…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
4 considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”

OBJECTIVE
The primary objectives, in priority order, of the City’s investment activities shall be:
a. Safety - The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts.

The City will undertake investments in a manner that seeks to ensure the preservation of capital in the overall portfolio.
b. Liquidity - This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest.

The City will maintain sufficient cash and short-term investment instruments which, together with projected revenues, will provide sufficient liquidity to meet all operating requirements as well as unanticipated needs for funds.
c. Return on Investments (Yield) – Yield is the income returned on investments. The Portfolio will be designed with the objective to attain a market rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and cash flow requirements.

DELEGATION OF AUTHORITY
The City Council, pursuant to California Government Code Section 53601, has primary responsibility for the investment of surplus monies. As authorized under Section 53607, the City Council hereby delegates its authority to invest surplus City funds to the City Treasurer and the Finance Manager. This delegation of authority shall be in effect for one fiscal year. The City Council may renew the authority annually and may revoke the authority at any time.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
5 ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. Officials, staff members and investment consultants shall disclose to the City Manager any material financial interests with a financial institution, provider, dealer or broker that conducts business with the City. Officials, staff members and investment consultants will further disclose any personal financial position that could be related to the City’s cash and investment portfolio.

Any firm proposing to provide any type of investment service to the City shall acknowledge their familiarity with and agree to abide by any Federal and State laws or regulations pertaining to contractual conflicts of interest or contributions by such firms, their employees, spouses or agents. Any persons, firms, dealers, brokers and advisors providing investment services or bond issue assistance shall disclose to the City Treasurer and Finance Manager all fee sharing and commission arrangements with other entities or persons prior to the City agreeing to buy an investment or issuing bonds.

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The Treasurer will maintain a list of approved financial institutions authorized to provide investment services to the City. The City of Cypress shall transact business only with banks, savings and loans, and "primary" or "regional" registered investment securities broker/dealers with offices located in the State of California. The firms, and individuals covering the agency, should be knowledgeable and experienced in public agency investing and the investment products involved. Any broker/dealer or financial institution wishing to provide services must provide the following to the City Treasurer:
• A completed City of Cypress Broker/Dealer Questionnaire • Audited financial statements
• Proof of Financial Industry Regulatory Authority (FINRA) certification • Trading resolution
• Proof of state registration

AUTHORIZED AND SUITABLE INVESTMENTS
The City is authorized by California Government Code Section 53600 et seq. to invest in specific types of securities. This Statement of Investment Policy further limits the authorized investments to the following:

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
6 a) U.S. Treasury Securities
United States Treasury bills, notes, bonds, or certificates of indebtedness, for which the full faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category.
b) U.S. Government Agency Securities
Bonds or obligations issued by federal government agencies or governmentsponsored enterprises. There is no limit on the percentage of the portfolio that can be invested in this category. Examples include:
• Federal Home Loan Mortgage Corporation (FHLMC)
• Federal National Mortgage Association (FNMA)
• Federal Farm Credit Bank (FFCB)
• Federal Home Loan Bank Notes and Bonds (FHLB)
• Federal Agricultural Mortgage Corporation (FAMC)
• Government National Mortgage Association (GNMA)
c) Certificates of Deposit (CD)
A time deposit with a specific maturity evidenced by a Certificate. Purchases of CDs shall not exceed 25% of the portfolio at the time of purchase, nor one year maturity.
d) Bankers’ Acceptances
Also known as bills of exchange or time drafts, Bankers’ Acceptances are drawn on and accepted by a commercial bank. Purchases of bankers’ acceptances shall not exceed 180 days maturity. Issuing banks must be rated by at least two of the Nationally Recognized Statistical Rating Organizations (NRSROs) and have a short-term rating of at least A1/P1 and a long-term rating, if any, of not less than “A”. Bankers’ Acceptances shall not exceed 25% of the portfolio at the time of purchase.
e) Commercial Paper
Short-term, unsecured promissory notes issued by both financial and nonfinancial corporations. Eligible commercial paper shall be of “prime” quality of the highest ranking or of the highest letter and number rating as provided by an NRSRO, shall not exceed 270 days maturity, and shall not exceed 25% of the portfolio at the time of purchase. Furthermore, the City may invest no more than 10% of its total portfolio in the commercial paper and medium-term corporate notes of any single issuer at the time of purchase.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
7 f) Negotiable Certificates of Deposit
Negotiable Certificates of Deposit issued by a nationally or state-chartered bank, a savings association, or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank.

Issuing institutions must be rated by at least two of the NRSROs and have a short-term rating of at least A1/P1 and a long-term rating, if any, of not less than “A”. Negotiable CDs shall not exceed 25% of the portfolio at the time of purchase.
g) Medium-term Corporate Notes
Unsecured promissory notes issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated “A” or better by an NRSRO.

Medium-term Corporate Notes shall not exceed 25% of the portfolio at the time of purchase. Furthermore, the City may invest no more than 10% of its total portfolio in the commercial paper and medium-term corporate notes of any single issuer at the time of purchase.
h) Local Agency Investment Fund (LAIF)
LAIF is a voluntary investment program administered by the California State Treasurer and overseen by the Local Investment Advisory Board. It allows local agencies to invest in a major portfolio while maintaining highly liquid investments. The City may invest in LAIF up to the maximum permitted by State law.
i) Investment Trust of California (CalTRUST)
CalTRUST is a Joint Powers Authority created by local public agencies to deposit funds for investment. CalTRUST is governed by a Board of Trustees made up of experienced local agency treasurers and investment officers.

There is no minimum investment, nor is there a maximum investment imposed by CalTRUST, however, the City has established a maximum of $50 million. j) Money Market Mutual Funds
Shares of money market mutual funds as described in Government Code Section 53601(l). The total investment in money market mutual funds shall not exceed 20% of the portfolio at the time of purchase. No more than 10% of the portfolio may be invested in any one mutual fund.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
8 k) Municipal Bonds
Bonds issued by local agencies of the United States, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency rated “A” or better by an NRSRO. No more than 5% of the portfolio may be invested in any one municipal issuer. In addition, the aggregate investment in municipal bonds may not exceed 25% of the portfolio at the time of purchase.

REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City must be in compliance with Section 8 – Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section 8 subsequent to the date of purchase, the Treasurer shall at least quarterly review the portfolio to identify any securities no longer in compliance. The Treasurer shall report to the City Council any major and critical incidences of noncompliance identified through the portfolio review.

If the credit rating of a security in the portfolio is downgraded, the City Treasurer and Finance Manager will monitor the credit risk and evaluate the need to sell the security prior to maturity. When selling securities prior to maturity, losses are only acceptable if (1) the proposed swap/trade can clearly enhance yield (value) over the life of the new security on a total return basis, or (2) to prevent the further loss of principal. Sufficient written documentation to facilitate the audit of the transaction must be maintained. Under Section 53601.6 of the California Government Code, the City may hold prohibited investments until their maturity to avoid incurring a loss. This allows the City to "grandfather" in securities purchased prior to a downgrade or the effective date of new legislation.

INVESTMENT POOLS/MUTUAL FUNDS
The Treasurer shall be required to research all investment pools and mutual funds prior to investing in them, and to stay abreast of any changes while the funds are invested in the pool/fund. The analysis should include an understanding of the pool/fund’s eligible securities, maximum maturities, interest calculation and distribution, size, withdrawal and deposit limits, and expense ratio.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
9 COLLATERALIZATION
Surplus funds must be deposited in state or national banks, state or federal savings associations or federal credit unions within the State of California. All demand and time deposits shall be collateralized with securities authorized by California Government Code Section 53651 et seq. The bank or savings and loan must secure public funds deposits with eligible securities having a market value of 110% of the total amount of the deposits or first trust deeds having a value of 150% of the total amount of the deposits. The Treasurer may waive security for that portion of a deposit, which is insured pursuant to Federal law.

The first $250,000 of a deposit is federally insured. Deposits over $250,000 are collateralized as indicated above.

SAFEKEEPING AND CUSTODY
All security transactions shall be conducted on a delivery-versus-payment (DVP) method. All securities shall be registered in the name of the City of Cypress and held by a third-party custodian designated by the City Treasurer.

MAXIMUM MATURITIES
In accordance with California Government Code, the City will not invest in any security maturing more than 5 years from the settlement date. However, if the City Treasurer desires to invest in longer-term securities, the Government Code allows such an investment if it is expressly approved by the City Council at least three months prior to the purchase.

INTERNAL CONTROLS
A system of internal control shall be established and documented in writing.

The controls shall be designed to prevent losses of public funds arising from irregularities, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the City. Controls deemed most important include: control of collusion, separation of duties, custodial safekeeping, clear delegation of authority, written confirmation of transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethics standards.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23
10 REPORTING
Under provisions of Section 53607 of the California Government Code, the City Treasurer shall submit a monthly investment report to the City Council.

This report will list the type of investment, institution, date of maturity, amount of deposit, rate of interest, current market value of securities with maturities in excess of 12 months, source of market valuations, and statement of compliance. A schedule of market values maturing by date and type, and such other data as required by the City Council will also be provided.

INVESTMENT POLICY ADOPTION
The City Treasurer and Finance Manager shall be responsible for reviewing and modifying this Statement of Investment Policy annually for City Council approval to ensure its consistency with the overall objectives of safety, preservation of principal, and liquidity, and its relevance to current law and current financial and economic conditions.

INDEMNIFICATION
Any authorized investment personnel acting with prudence and in accordance with the City Statement of Investment Policy, will not be held personally liable for any investment losses. Through surety bonds the City is indemnified against any investment personnel acting with malfeasance, misfeasance or nonfeasance.

June 1, 2022
City Treasurer Date

Attachments: Investment Guidelines and Strategy
Investment Procedures-Internal Control Guidelines
Segregation of Responsibilities of the Treasury Functions Glossary of Investment Terminology

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

INVESTMENT GUIDELINES AND STRATEGY
11 I. GUIDELINES:

Guidelines are established to direct and control activities in such a manner that previously established goals are achieved.

1. Investment Transaction: Every investment transaction must be authorized and reviewed by the City Treasurer and Finance Manager.

2. Pooled Cash: Whenever practical, cash is consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated quarterly to each fund according to fund actual month-end cash balances.

3. Competitive Bids: Purchases and sales of securities are made on the basis of competitive offers and bids when practical.

4. Cash Forecasting: The cash flow for the City is projected with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements.

5. Investment Limitations: Security purchases and holdings are maintained within statutory limits imposed by the California Government Code. The City's current limits are listed on the following page.

6. Liquidity: The marketability (salability) of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands.

7. Diversification: The portfolio should consist of various types of securities, issuers, and maturities.

8. Evaluate Certificates of Deposit:
a) Certificates of Deposit shall be evaluated in terms of Federal Deposit Insurance Corporation (FDIC) coverage. The City does not purchase Certificates of Deposit in excess of the FDIC coverage amount.
b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized promissory notes.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

INVESTMENT GUIDELINES AND STRATEGY
12 CITY POLICY GOVERNMENT CODE
Portfolio Maximum Portfolio Maximum
PERMITTED INVESTMENTS Limit Maturity Limit Maturity
U.S. Treasury Securities No limit 5 years No limit 5 years U.S. Agency Securities No limit 5 years No limit 5 years Certificates of Deposit (CD) 25% 1 year No limit 5 years Bankers' Acceptances 1 25% 180 days 40% 180 days
Commercial Paper 2 25% 270 days
25% -
40% 270 days
Negotiable CDs 1 25% 5 years 30% 5 years
Medium-term Corporate Notes 2 25% 5 years 30% 5 years
LAIF No limit 3 n/a No limit 3 n/a
CalTRUST $50 million n/a No limit n/a
Money Market Mutual Funds 20% n/a 20% n/a
Municipal Bonds 4 25% 5 years No limit 5 years
1 Individual issuer limit of 10%
2 Individual issuer limit of 10% for Commercial Paper and Medium-term Corporate Notes combined 3 Limit set by LAIF Governing Board is $75 million per individual account. The City maintains two LAIF accounts (City and the Recreation and Park District). 4 Individual issuer limit of 5%

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

INVESTMENT GUIDELINES AND STRATEGY
13 II. STRATEGY:

Strategy refers to the ability to manage financial resources in the most advantageous manner.

1. Economic Forecasts: Economic forecasts are obtained periodically from economists and financial experts to assist with the formulation of an investment strategy for the local agency.

2. Implementing Investment Strategy: Investment transactions are executed which conform with anticipated interest rate trends and the current investment strategy plan.

3. Preserve Portfolio Value: The City generally holds investments until maturity to avoid short-term market fluctuations..

III. AUDIT:

Annually, the City's external auditors test the City's portfolio for conformance to this policy in relation to the financial statement audit.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

INVESTMENT PROCEDURES

INTERNAL CONTROL GUIDELINES
14 I. OBJECTIVES OF INTERNAL CONTROL:

Internal control is the plan of organization and all the related systems established by management's objective of ensuring, as far as practicable:
• The orderly and efficient conduct of its business, including adherence to management policies.
• The safeguarding of assets.
• The prevention or timely detection of errors and irregularities. • The accuracy and completeness of the accounting records. • The timely preparation of reliable financial information.

II. LIMITATIONS OF INTERNAL CONTROL:

No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including:
• Management's typical and practical requirement that a control be cost-effective. • The focus of most controls on recurring, rather than unusual, types of transactions. • Human error due to misunderstanding, carelessness, fatigue or distraction of functions. • The potential for a person responsible for exercising control abusing that responsibility. • Frequently, a member of management may be in a position to override controls which management has set up.
• Collusion, where two or more employees conspire to circumvent controls.

III. ELEMENTS OF INTERNAL CONTROL:

Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are:
• ORGANIZATION: Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood. • PERSONNEL: Personnel should have capabilities commensurate with their responsibilities. Personnel selection and training policies, together with the quality and quantity of supervision, are essential.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

INVESTMENT PROCEDURES

INTERNAL CONTROL GUIDELINES
15 • SEGREGATION OF FUNCTIONS: Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or irregularities in the normal course of duty. If different people handle two parts of a transaction, collusion is necessary to conceal errors or irregularities. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets, and performing reconciliations. • AUTHORIZATION: An appropriate responsible individual should authorize all transactions. The responsibilities and limits of authorization should be clearly delineated.

The authorization for a specific transaction or the granting of authority for transactions should be to a position commensurate with the significance of the transactions.

Delegation of authority to authorize transactions should be handled carefully. • CONTROLS OVER ACCOUNTING SYSTEM: Controls over an accounting system include manual and automated procedures carried out independently to ascertain that transactions are complete, valid, authorized and properly recorded.

IV. CASH CONTROLS:

1. Cash control procedures include the following:
a. Receipts are reconciled on a daily basis.
b. Amounts are deposited intact.
c. All bank accounts are duly authorized.
d. Bank reconciliations are prepared and reviewed.
e. The posting of cash receipt entries in books is timely. f. Receipt forms are automated, accounted for, and physically secured. g. Proper approval required for write-off's of customer accounts. h. Checks are restrictively endorsed upon receipt.
i. Adequate physical security over cash.
j. Individuals who handle cash do not post account records. k. Adequate supervision of Finance Department operations.

2. Significant revenues are confirmed directly with payer and compared with City books to make sure amounts are recorded properly.

3. Cash balances are substantiated by confirming all account balances. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

SEGREGATION OF RESPONSIBILITIES OF THE TREASURY FUNCTIONS 16 Function Responsibility

1. Authorization of Investment Transactions
A) Formal Investment Policy
Prepared by: Finance Manager/City Treasurer
Approved by: City Treasurer
Adopted by: City Council
B) Investment transactions approved by: City Treasurer
C) Monthly Investment Report
Prepared by: Accountant/Finance Manager
Reviewed by: Finance Manager/City Treasurer
Approved by: City Treasurer
Submitted to: City Council

2. Execution of investment transactions: Finance Manager/City Treasurer

3. Timely recording of investments in Treasurer’s records: Finance Manager/City Treasurer

4. Recording of investments in the accounting records: Accountant/Finance Manager

5. Accounting records approved by: City Treasurer

6. Verification on investment with broker’s records: Accountant/Finance Manager

7. Safeguarding of Assets and Records
A) Reconciliation of Treasurer's records to accounting
records, bank statements and safekeeping records:

Finance Manager/City Treasurer
B) Approved by: City Treasurer
C) Review of financial institution’s financial condition, safety, liquidity, and yield potential of investments:

Finance Manager with City
Treasurer approval

8. Wire Transfer Control Procedures
A) Written amount, account and authorization agreement: Requesting Department B) Dual-approval required for all wire transfers: Finance Manager/City Treasurer

9. Annual review of investment portfolio prepared by Finance Manager/City Treasurer, including investment types, purchase price, market values, maturity dates, yields, and safekeeping reports:

Independent Auditors for
Financial Statements

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

GLOSSARY OF INVESTMENT TERMINOLOGY
17 Bankers' Acceptances: Short-term debt instruments issued by a company and guaranteed by a commercial bank. They are time drafts in which a bank accepts the obligation to pay the principal and interest at maturity even if the issuer does not. Essentially, these are bank obligations collateralized by goods being shipped between an exporter and importer. The date of maturity typically ranges between 30 and 180 days. The City may not invest more than 25% of its surplus money in Bankers' Acceptances with each issuer limited to 10%.

Basis Point: One one-hundredth of one percent, or 0.01%. Basis points are often used to describe changes in yields on bonds and notes.

Bid Price: The price at which a buyer offers to buy a security.

Certificates of Deposit (CD): A deposit of funds at a bank for a specified period of time that earns interest at a specified rate. The City does not purchase Certificates of Deposit that are not FDIC insured. The City may invest up to 25% of its surplus money in insured CD's with maturities of one year of less.

Collateral: Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public funds.

Commercial Paper: Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are typically purchased at a discount to par value or at par value with interest bearing. Local agencies are permitted by State law to invest in Commercial Paper of the highest ranking or of the highest letter and numerical rating as provided by a nationally recognized statistical rating organization (NRSRO). Purchases of eligible Commercial Paper may not exceed 270 days maturity, nor exceed 25% of the City's surplus funds. Furthermore, the City may invest no more than 10% of its total portfolio in the commercial paper and medium-term corporate notes of any single issuer at the time of purchase.

Coupon: The annual rate of interest a bond’s issuer promises to pay the bondholder on the bond’s face value.

Credit Risk: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

GLOSSARY OF INVESTMENT TERMINOLOGY
18 Delivery Versus Payment (DVP): A procedure for settling investment transactions in which the delivery of the security by the seller and the payment for the security by the buyer happen simultaneously by a third-party safekeeping agent. This practice ensures no funds are at risk in an investment transaction as funds are not released until securities are delivered.

Discount: The difference between the par value of a bond and the cost of the bond, when cost is below par. Some short-term securities, such as Treasury bills and bankers acceptances, are known as discount securities. They sell at a discount from par and return par value to the investor at maturity, without additional interest. Other securities trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

Duration: A measure of the timing of cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

Federal Funds Rate: Interest rate charged by banks with excess reserves at a Federal Reserve bank to banks needing overnight loans to meet reserve requirements.

Interest: The amount earned while owning a security, generally calculated as a percentage of the principal amount.

Investment Trust of California (CalTRUST): A Joint Powers Agency Authority created by local public agencies to deposit funds for investment. CalTRUST is authorized as an investment under California Government Code Section 53601(p). While there is no maximum balance imposed by CalTRUST, the City has established a $50 million limit. CalTRUST offers varying degrees of liquidity, with the short-term option providing that deposits can be converted to cash in 24 hours. Interest is distributed to those agencies participating on a per share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid monthly. CalTRUST retains a portion of the earnings for administrative costs, ranging between 12 and 20 basis points.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

GLOSSARY OF INVESTMENT TERMINOLOGY
19 Local Agency Investment Fund (LAIF): A voluntary investment alternative for local governments and special districts authorized by California Government Code Section 16429.1 et seq. There is no minimum investment period and the minimum transaction is $5,000. Each LAIF account is limited to 15 transactions per month and subject to a maximum balance, currently set by the State Treasurer at $75 million, but subject to change. LAIF offers high liquidity because deposits can be converted to cash in 24 hours with no interest lost. Interest is distributed to those agencies participating on a per share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains a portion for administrative costs, not to exceed five percent of the quarterly earnings.

Local Agency Investment Fund (LAIF) (continued): The pooling of the State's surplus cash with the participant's surplus cash creates a multi-billion dollar money pool and allows diversified investments. In a high interest rate market, the City may do better than LAIF however, in times of low interest rates, LAIF’s yields tend to be higher. The City invests in the Local Agency Investment Fund, whose Investment Policy allows investments in securities not specifically authorized by the City's Investment Policy. However these investments by LAIF are allowable under the California Government Code.

Market Risk: The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets. Market risk is also known as undiversifiable risk because it affects all asset classes and is unpredictable.

Market Value: The price at which a security is trading and could presumably be purchased or sold.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Medium Term Corporate Notes: Unsecured promissory notes issued by a corporation organized and operating in the United States. These are negotiable instruments traded in the secondary market. Medium Term Corporate Notes can be defined as extended maturity Commercial Paper. Local agencies are restricted by the Government Code to investments in corporations rated in the top three note categories by an NRSRO, five year maximum maturity and may not exceed 30% of surplus funds. The City's restrictions are a maximum term of five years to maturity and total investments in Medium Term Corporate Notes may not exceed 25% of the City's surplus funds. Furthermore, the City may invest no more than 10% of its total portfolio in the commercial paper and medium-term corporate notes of any single issuer at the time of purchase.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

GLOSSARY OF INVESTMENT TERMINOLOGY
20 Municipal Bonds: Debt securities issued by a state or local government or governmental entity.

Nationally Recognized Statistical Rating Organization (NRSRO): A credit rating organization that provides an assessment of the creditworthiness of a firm or financial instrument(s), and is registered with the Securities and Exchange Commission.

Negotiable Certificates of Deposit: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. The primary market issuance is in multiples of $1,000,000, the secondary market usually trades in denominations of $500,000, and smaller lots are occasionally available. As a matter of practice, only the ten largest US banks, where there is a secondary market established for continued liquidity, are considered for investment. Purchases of Negotiable Certificate of Deposit may not exceed 25% of the City's surplus funds and five years to maturity. The City may invest no more than 10% of its total portfolio in the negotiable certificates of deposit of any single issuer.

Offer Price: The price asked by a seller of securities.

Par Value: The face value of a bond.

Premium: The difference between the par value of a bond and the market value of the bond, when the market price is above par. A bond is usually sold at a premium when it offers a coupon rate higher than prevailing interest rates.

Principal: The face value or par value of an investment.

Price Risk: The risk that the price of a bond sold prior to maturity will be less than the price at which the bond was originally purchased.

Reinvestment Risk: The risk that coupon payments (or other payments received) cannot be reinvested at the same rate as the initial investment.

Safekeeping: Storage and protection of a customer’s financial assets, provided as a service by an institution serving as Agent or Custodian and, where control is delegated by the customer.

CITY OF CYPRESS

STATEMENT OF INVESTMENT POLICY
Fiscal Year 2022-23

GLOSSARY OF INVESTMENT TERMINOLOGY
21 U.S. Government Agency Securities: Debt securities issued or guaranteed by U.S. federal government agencies, or bonds issued by government-sponsored enterprises (GSEs). GSEs are corporations created by Congress to foster a public purpose. Bonds issues or guaranteed be federal agencies, such as the Government National Mortgage Association, are backed by the full faith and credit of the U. S. government. Bonds issued by GSEs, such as the Federal Nation Mortgage Association, are not backed by the same guarantee as federal government agencies.

U.S. Treasury Bills: Direct obligations of the United States Government issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest calculated on a 360-day basis and actual invested days, and paid at maturity. They are a highly liquid security. An unlimited amount of the City’s portfolio may be invested in US Treasury Bills.

U.S. Treasury Notes: Direct obligations of the United States Government with original maturities of two to ten years. Notes are actively traded in a large secondary market and are very liquid. Interest is paid every six months until maturity. An unlimited amount of funds may be invested in US Treasury Notes with maximum terms of five years. The term may be extended if authorized by the City Council.

Yield: The rate of annual income return on an investment, expressed as a percentage.

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 8.

FROM: Matt Burton, Director of Finance and Administrative Services DATE: 06/13/2022
SUBJECT: Adopt the Fiscal Year 2022-23 Appropriations Limit

RECOMMENDATION
Adopt a Resolution establishing the City's Fiscal Year 2022-23 appropriations limit.

SUMMARY
In 1979, Proposition 4, known as the Gann Initiative, added Article XIIIB to the State Constitution. The Gann Initiative, combined with modifications made in 1990 by Proposition 111, limits the annual growth of tax-funded government spending to changes in population and inflation. The City's appropriations limit, also known as the "Gann limit", is required to be adopted annually by the City Council.

DISCUSSION
The appropriations limit applies only to revenues derived from taxes, such as property taxes, sales taxes, etc., and is based on actual FY 1986-87 appropriations adjusted each year for inflation and population growth. The inflation factor is either the percentage change in California’s Per Capita Income or the growth in the City’s assessed value due to the addition of non-residential new construction. The population factor is the growth in either the City’s or the County’s population, whichever is greater.

The FY 2022-23 appropriations limit was calculated in accordance with these guidelines utilizing the factors provided by the State Department of Finance. This year, the City and the County both experienced population declines. As a percentage, the County's decline was smaller (-0.23% compared to -0.44% for the City), therefore, the County's factor was used in the calculation.

The limit is calculated as shown below.

FY 2021-22
Appropriations
Limit
Change in Per
Capita Income
(7.55%)
Percent increase/decrease
in County population
(-0.23%)
FY 2022-23
Appropriations
Limit
$89,018,615 x 1.0755 x 0.9977 $95,519,320
For FY 2022-23, the City’s appropriations limit will be $95,519,320. The FY 2022-23 proposed budget for City funds, scheduled for adoption on June 13, includes $30.9 million of tax proceeds. Therefore, the City will be well below the statutory limit for the upcoming fiscal year.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS

ESTABLISHING THE CITY'S APPROPRIATIONS LIMIT
FOR THE 2022-23 FISCAL YEAR.

WHEREAS, Article XIIIB of the State Constitution establishes and defines annual appropriations limits of local government; and
WHEREAS, appropriations subject to such limits may not exceed such limits; and WHEREAS, documentation used in the determination of the appropriations limit for Fiscal Year 2022-23 has been available to the public in the Finance and Administrative Services Department for fifteen days as required by Government Code Section 7910; and WHEREAS, Chapter 1205 of the Government Code requires that each year the governing body shall, by resolution, establish its appropriations limit.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Cypress, hereby establishes the FY 2022-23 appropriations limit as follows:

FY 2022-23 Appropriations Limit $95,519,320
FY 2022-23 Population Option Used County of Orange Growth (-0.23%) FY 2022-23 Cost of Living Option Used California Per Capita Income (7.55%) PASSED AND ADOPTED by the City Council of the City of Cypress, at a regular meeting held on the 13th day of June, 2022.

MAYOR OF THE CITY OF CYPRESS
ATTEST:

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )

AYES:

NOES:

ABSENT:

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 9.

FROM: Matt Burton, Director of Finance and Administrative Services DATE: 06/13/2022
SUBJECT: Adopt the Cypress Recreation and Park District's Fiscal Year 2022-23 Appropriations Limit

RECOMMENDATION
Adopt a Resolution establishing the Cypress Recreation and Park District's Fiscal Year 2022-23 appropriations limit.

SUMMARY
In 1979, Proposition 4, known as the Gann Initiative, added Article XIIIB to the State Constitution. The Gann Initiative, combined with modifications made in 1990 by Proposition 111, limits the annual growth of tax-funded government spending to changes in population and inflation. The Cypress Recreation and Park District's appropriations limit, also known as the "Gann limit", is required to be adopted annually by the City Council, acting as the ex-officio Board of Directors of the District.

DISCUSSION
The appropriations limit applies to revenues derived from taxes, which for the District only includes property taxes, and is based on actual FY 1986-87 appropriations adjusted each year for inflation and population growth. The inflation factor is either the percentage change in California’s Per Capita Income or the growth in the District's assessed value due to the addition of non-residential new construction. The population factor is the growth in either the District's or the County’s population, whichever is greater.

The FY 2022-23 appropriations limit was calculated in accordance with these guidelines utilizing the factors provided by the State Department of Finance. This year, the District and the County both experienced population declines. As a percentage, the County's decline was smaller (-0.23% compared to -0.44% for the District), therefore, the County's factor was used in the calculation.

The limit is calculated as shown below.

FY 2021-22 Change in Per Capita Percent increase/decrease in FY 2022-23 Appropriations
Limit
Change in Per Capita
Income (7.55%)
Percent increase/decrease in
County population (-0.23%)
FY 2022-23
Appropriations Limit
$9,904,744 x 1.0755 x 0.9977 $10,628,051
For FY 2022-23, the District's appropriations limit will be $10,628,051. The District's FY 2022-23 proposed budget, scheduled for adoption on June 13, includes $6.3 million of tax proceeds. Therefore, the District is well below the statutory limit for the upcoming fiscal year.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,

EX OFFICIO GOVERNING BOARD OF DIRECTORS OF THE CYPRESS

RECREATION AND PARK DISTRICT, A SUBSIDIARY DISTRICT OF

THE CITY OF CYPRESS ESTABLISHING THE CYPRESS

RECREATION AND PARK DISTRICT'S APPROPRIATIONS LIMIT FOR THE 2022-23 FISCAL YEAR.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Cypress, acting as the ex officio governing Board of Directors of the Cypress Recreation and Park District, hereby establishes the FY 2022-23 appropriations limit for the Cypress Recreation and Park District as follows:

FY 2022-23 Appropriations Limit $10,628,051
FY 2022-23 Population Option Used County of Orange Growth (-0.23) FY 2022-23 Cost of Living Option Used California Per Capita Income (7.55%) PASSED AND ADOPTED by the City Council of the City of Cypress, ex officio governing Board of Directors of the Cypress Recreation and Park District, at a regular meeting held on the 13
th day of June, 2022.

MAYOR OF THE CITY OF CYPRESS
ATTEST:

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 13
th day of June, 2022, by the following roll call vote:

AYES:

NOES:

ABSENT:

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 10.

FROM: Alisha Farnell, City Clerk
DATE: 06/13/2022
SUBJECT: Adopt Resolutions to Hold a General Municipal Election on November 8, 2022

RECOMMENDATION

1. Adopt a Resolution calling and giving notice of a General Municipal Election on Tuesday, November 8, 2022, for the election of certain officers as required by the City Charter; and

3. Adopt a Resolution adopting regulations for candidates for elective office pertaining to candidates statements submitted to the voters at an election to be held on Tuesday, November 8, 2022.

DISCUSSION
The City Charter calls for a General Municipal Election to be held on Tuesday, November 8, 2022, for the purpose of electing three members of the City Council for the full term of four years. The attached Resolutions calls for the holding of a General Municipal Election on Tuesday, November 8, 2022, requests the Board of Supervisors consolidate the General Municipal Election with the Statewide General Election, and establishes regulations for candidates for elective office pertaining to candidates statements submitted to the voters.

BUDGET IMPACT
The Proposed FY 2022-23 Budget includes $161,200 for election costs.

LEGAL REVIEW
The City Attorney has reviewed and approved the Resolutions.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution Calling Election
Resolution Consolidating with County
Resolution on Candidates Statements
1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,

CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A

GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 8, 2022, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE CITY CHARTER.

WHEREAS, under the provisions of the City Charter, a General Municipal Election shall be held on November 8, 2022, for the election of Municipal Officers; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of the City Charter, there is called and ordered to be held in the City of Cypress, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing three (3) Members of the City Council for the full term of four (4) years.

SECTION 2. That the ballots to be used at the election shall be in form and content as required by law.

SECTION 3. That the City Clerk is authorized, instructed and directed to coordinate with the County of Orange Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 4. That the polls (vote centers) for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls (vote centers) shall be closed, pursuant to Election Code § 10242, except as provided in §§ 14212, 14401 of the Elections Code of the State of California.

SECTION 5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of Orange Registrar of Voters, the City Council, in accordance with Election Code § 15651(a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot.
2 SECTION 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cypress, California, at a regular meeting held on the 13th day of June 2022. _____________________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS
1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,

CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF ORANGE TO CONSOLIDATE A GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 8, 2022, WITH THE

STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE
PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE.

WHEREAS, the City Council of the City of Cypress called a General Municipal Election to be held on November 8, 2022, for the purpose of the election of three (3) Members of the City Council; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city, the precincts, polling places (vote centers) and election officers of the two elections be the same, and that the county election department of the County of Orange canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of § 10403 of the Elections Code, the Board of Supervisors of the County of Orange is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of the election of three (3) Members of the City Council.

SECTION 2. That the county election department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide election.

SECTION 3. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election.

SECTION 4. That the City of Cypress recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.
2 SECTION 5. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the county election department of the County of Orange.

SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cypress, California, at a regular meeting held on the 13th day of June 2022. ____________________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
__________________________________

CITY CLERK OF THE CITY OF CYPRESS

1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS,

CALIFORNIA, ADOPTING REGULATIONS FOR CANDIDATES FOR

ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS

SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON
NOVEMBER 8, 2022.

WHEREAS, § 13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidates statement;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. GENERAL PROVISIONS. That pursuant to § 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Cypress on November 8, 2022, may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age, and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the office of the City Clerk at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

SECTION 2. FOREIGN LANGUAGE POLICY.

A. Pursuant to the Federal Voting Rights Act, candidates statements will be translated into all languages required by the County of Orange. The County is required to translate candidate’s statements into the following languages:

Spanish, Korean, Chinese, and Vietnamese.

B. The County will print and mail separate voter information guides and candidates statements in Spanish, Korean, Chinese, and Vietnamese to only those voters who are on the county voter file as having requested a voter information guide in a particular language. The County will make the voter information guides and candidates statements in the required languages available at all polling places/vote centers, on the County’s website, and in the Election Official’s office.

SECTION 3. PAYMENT.
2 A. Translations:

1. The candidate shall be required to pay for the cost of translating the candidates statement into any required foreign language as specified in (A) and/or (B) of Section 2 above pursuant to Federal and/or State law.

2. The candidate shall be required to pay for the cost of translating the candidates statement into any foreign language that is not required as specified in (A) and/or (B) of Section 2 above, pursuant to Federal and/or State law, but is requested as an option by the candidate.

B. Printing:

1. The candidate shall be required to pay for the cost of printing the candidates statement in English in the main voter pamphlet.

2. The candidate shall be required to pay for the cost of printing the candidates statement in a foreign language required in (A) of Section 2 above, in the main voter pamphlet.

The City Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidates statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency his or her estimated pro rata share as a condition of having his or her statement included in the voter’s pamphlet. In the event the estimated payment is required, the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the Clerk is not bound by the estimate, and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the Clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 30 days of the election.

SECTION 4. MISCELLANEOUS. All translations shall be provided by professionally-certified translators. The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 5. ADDITIONAL MATERIALS. No candidate will be permitted to include additional materials in the voter information guide.

SECTION 6. That the City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued. 3 SECTION 7. That all previous resolutions establishing council policy on payment for candidates statements are repealed.

SECTION 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Cypress, California, at a regular meeting held on the 13th day of June 2022. ____________________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
__________________________________

CITY CLERK OF THE CITY OF CYPRESS

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 11.

FROM: Peter Grant, City Manager
DATE: 06/13/2022
SUBJECT: Amend On-Call Contract Services Agreement with Communications LAB for Community Outreach and Public Engagement and Approve Three Task Orders

RECOMMENDATION

1. Amend the on-call contract services agreement with Communications LAB for community outreach and public engagement; and

2. Approve a Task Order for $12,000 for temporary communications support; and

3. Approve a Task Order for $9,600 for voter outreach efforts; and

4. Approve a Task Order for $60,000 for Recreation and Community Services communications support for FY 2022-23.

DISCUSSION
The City Council adopted the city's first Community Engagement Plan in July 2021 to enhance efforts to connect and communicate with the community. The Plan calls for:

1. Effectively distributing information to the community

2. Promoting the City of Cypress’ brand and special events

3. Blending new and traditional media

4. Connecting through Council Members, community connectors, and City partners A Request for Qualifications was issued to identify communications firms to support the Plan and supplement community outreach and Recreation and Community Services marketing efforts. Communications LAB was identified as the most qualified firm and awarded an on-call Contract Services Agreement in December 2021.

Prior to any new community outreach service or communication project, Communications LAB provides a task order which includes a detailed scope of services, project schedule, and fee proposal for review and approval. Three task orders are recommended for FY 2022-23:

Communications Support
Communications Support
This task order will support the City’s communication efforts while the Communications and Marketing Analyst is on leave from July through October. Communications LAB will provide social media management, develop content for emails and newsletters, communications support for city leadership, website updates, Minute with the Mayor videos, and event planning and implementation. Without this Task Order, the City will be without dedicated communications resources while the Communications and Marketing Analyst is on leave.

The task order will not exceed $12,000.

Voter Outreach Efforts
This Task Order will engage the community and conduct outreach to increase voter participation in the 2022 General Municipal Election. Communications LAB will conduct and support voter registration, vote by mail, and Election day participation. These initiatives include graphic design, social media, developing bilingual postcards, and community outreach. This Task Order is necessary to provide the voter outreach program Decision Package in the FY 2022-23 Proposed Budget. The cost will not exceed $9,600. The effort will be managed by the City Clerk's office.

Recreation and Community Services Communications Support This task order will enhance marketing and promotion of RCS programs and events.

Communications LAB will assist RCS in promoting programs and events through social media, email, newsletters, Cypress Central, the website, and press releases. Graphic design, digital content, writing copy, event support, and photography/videography. The cost will not exceed $60,000 for the fiscal year.

BUDGET IMPACT
Sufficient amounts are included in the FY 2022-23 Proposed Budget for the City and District for the three recommended task orders.

LEGAL REVIEW
The City Attorney has approved the first amendment to the agreement as to form.

APPROVED BY: Peter Grant, City Manager
Attachments
First Amendment to Contract Services Agreement
Task Order 004
Task Order 005
Task Order 006

FIRST AMENDMENT TO THE AGREEMENT FOR CONTRACT SERVICES

FOR COMMUNITY OUTREACH & COMMUNICATIONS
This FIRST AMENDMENT to the Agreement for Community Outreach and Communications is entered into effective the 13th day of June, 2022, (“First Amendment”) by and between the CITY OF CYPRESS, a municipal corporation, (herein "City") and Communications Lab, a California based company (herein "Contractor").

RECITALS
A. WHEREAS, on December 27, 2021, City and Contractor entered into an “AGREEMENT FOR CONTRACT SERVICES FOR COMMUNITY OUTREACH & COMMUNICATIONS” (the (Agreement”) in which contractor agreed to perform community outreach and communications on an on-call and as-needed basis.

B. WHEREAS, prior to starting any work, Contractor shall submit a proposed, detailed task order scope of services, fee proposal, schedule, and over-all project estimate to the contract officer for approval.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties hereby agree as follows:

AGREEMENT

1. Exhibit “C” SCHEDULE OF COMPENSATION shall be amended to read:

I. Contractor’s fee shall be negotiated, for each Task Order, on a Time and Material, Not-to-Exceed basis, in accordance with the blended hourly rate schedule below:

Title Bill Rate
CEO $150/hour
President $150/hour
Vice President $150/hour
SR. Account Manager $150/hour
Account Manager $150/hour
Account Executive $150/hour
Graphic Designer $150/hour
Account Coordinator $150/hour
II. This schedule of blended hourly rates is in effect for the first one-year extension term of this Agreement. Hourly rates, set forth in this Exhibit “C”, may be reasonably modified upon written request from Contractor and written approval from Contract Officer and City’s Director or Finance. Rate increases shall not exceed 5% in any subsequent year.

III. All Task Orders must be performed within the budgetary limits established for each Task Order.

IV. All Task Orders shall be detailed in writing, including, but not limited to, the estimated hours, hourly rates, and the Not-to-Exceed fee for services rendered.

2. This First Amendment sets forth the entire agreement between the parties with respect to the matters set forth herein. Except as otherwise modified by this First Amendment, the Agreement shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE]
IN WITNESS WHEREOF, the parties have executed and entered into this First Amendment and agree to be bound by the terms and conditions of the same.

CITY:

CITY OF CYPRESS,
a municipal corporation
____________________________________
Paulo Morales, Mayor
ATTEST:
__________________________
Alisha Farnell, City Clerk
APPROVED AS TO FORM:

Aleshire & Wynder, LLP
_____________________________
Fred Galante, City Attorney
CONTRACTOR:

Communications LAB,
a California based Company
Name: Arianna Barrios
Title: CEO
[END OF SIGNATURES]
March 14, 2022
Jason Machado,
Senior Management Analyst
City of Cypress
5275 Orange Ave.

Cypress CA 90630
cc: Brooke Straus, Communications & Marketing Analyst
Alisha Farnell, City Clerk
SUBJECT: Task Order 004
Strategic Communications Support
Personnel Leave Coverage
Dear Mr. Machado,
Communications LAB is pleased to submit the following proposal for services to provide professional support to the City of Cypress relative to Task Order 004: Strategic Communications Support as outlined below. The scope of services and schedule of compensation are presented by line item below – mid-June through mid-October 2022.

A detailed scope of work was previously provided for this Task Order.

Additionally, we have provided an updated Rate Sheet to reflect new team hourly rates for client renewal. As a valued client, this provides the City Cypress a deeply discounted professional services rate going forward.

Item #1 - Personnel Leave of Absence Coverage / Supplemental Comms Support Date(s) Task Description Hours Cost
July - Oct
2022
• Social Media Management
• Graphic Design
• Social Channel Review
• Ongoing Mtgs w City Leadership
• Press Releases (as Needed)
• Website Updates
• City & Event Photos
• City Newsletter
• City Email Blasts
• Mayor’s Minute
• Communication Support for City
Leadership
• Event Planning & Implementation
20 Hours/Month
80 Hours/Total
Hourly Rate:
$150
Monthly Cost
$3,000
Total Cost
$12,000
Task Order Total $12,000.00
Communications LAB Billing Rates
Title Bill Rate
CEO $150/hour
President $150/hour
Vice President $150/hour
SR. Account Director $150/hour
Account Manager $150/hour
Account Executive $150/hour
Graphic Designer $150/hour
Account Coordinator $150/hour
As noted in the chart, pricing is based on Communications LAB’s blended team rate of $150 per professional hour. If you should have any questions, please feel free to contact me on my personal mobile phone (714) 878-4864 or via email at [email protected].

Thank you,
Arianna Barrios, CEO
Communications LAB
June 1, 2022
Alisha Farnell, City Clerk
City of Cypress
5275 Orange Ave.

Cypress CA 90630
cc: Brooke Straus, Communications & Marketing Analyst
SUBJECT: Task Order 005
Voter Outreach Effort
Dear Ms. Farnell,
Communications LAB is pleased to submit the following proposal for services to provide professional support to the City of Cypress relative to Task Order 005: Voter Outreach Efforts as outlined below. The scope of services, costs and timeline are presented by line item below for your review.

ITEM #1
Date(s) Task Description Hours Cost
September
2022
Voter Registration Campaign
• Graphic Design
• Social Media Posts
• Postcard Development / Mailing
Community Flyer (Bilingual)
• Direct Community Engagement
(Community Outreach Boothing)
15 Hours
Hourly Rate:
$150
Total Cost
$3,000
ITEM #2
Date(s) Task Description Hours Cost
October
2022
Voter By Mail Support
• Graphic Design
• Social Media Posts
• Postcard Development / Mailing
• Community Flyer (Bilingual)
• Direct Community Engagement
(Community Outreach Boothing)
15 Hours
Hourly Rate:
$150
Total Cost
$3,000
ITEM #3
Communications LAB Billing Rates
Title Bill Rate
CEO $150/hour
President $150/hour
Vice President $150/hour
SR. Account Director $150/hour
Account Manager $150/hour
Account Executive $150/hour
Graphic Designer $150/hour
Account Coordinator $150/hour
As noted in the chart, pricing is based on Communications LAB’s blended team rate of $150 per professional hour. If you should have any questions, please feel free to contact me on my personal mobile phone (714) 878-4864 or via email at [email protected].

Thank you,
Arianna Barrios, CEO
Communications LAB
701 E Chapman Avenue
Orange, CA 92866
Date(s) Task Description Hours Cost
October /
November
2022
Election Day Support
• Graphic Design
• Social Media Posts
• Postcard Development / Mailing
• Community Flyer (Bilingual)
• Direct Community Engagement
(Community Outreach Boothing)
15 Hours
Hourly Rate:
$150
Total Cost
$3,000
Other Direct
Cost • Social Media Boosting $200 per month $600
Task Order Total $9,600.00
March 14, 2022
Jason Machado,
Senior Management Analyst
City of Cypress
5275 Orange Ave.

Cypress CA 90630
cc: Brooke Straus, Communications & Marketing Analyst
Alisha Farnell, City Clerk
SUBJECT: Task Order 006
Strategic Communications Support
Recreation & Community Services
Dear Mr. Machado,
Communications LAB is pleased to submit the following proposal for services to provide professional support to the City of Cypress relative to Task Order 006: Strategic Communications Support (Rec & Comm Srvcs) as outlined below. The scope of services and schedule of compensation are presented by line item below for FY 2022/2023 – July through June.

Item #1 – Ongoing Strategic Communications Support (Rec & Comm Srvcs) A detailed scope of work was previously provided for this Task Order.

Date(s) Task Description Hours Cost
July 2022 –
June 2023
• Social Media Management
• Graphic Design
• Social Channel Review
• Ongoing Mtgs w City Leadership
• Press Releases (as Needed)
• Website Updates
• City & Event Photos
• City Newsletter
• City Email Blasts
• Mayor’s Minute
• Communication Support for City
Leadership
• Event Planning & Implementation
35 Hours/Month
420 Hours/Total
Hourly Rate:
$150
Monthly Cost
$5,000
Total Cost
$60,000
Task Order Total $72,000.00
Additionally, we have provided an updated Rate Sheet to reflect new team hourly rates for client renewal. As a valued client, this provides the City Cypress a deeply discounted professional services rate going forward.

Communications LAB Billing Rates
Title Bill Rate
CEO $150/hour
President $150/hour
Vice President $150/hour
SR. Account Director $150/hour
Account Manager $150/hour
Account Executive $150/hour
Graphic Designer $150/hour
Account Coordinator $150/hour
As noted in the chart, pricing is based on Communications LAB’s blended team rate of $150 per professional hour. If you should have any questions, please feel free to contact me on my personal mobile phone (714) 878-4864 or via email at [email protected].

Thank you,
Arianna Barrios, CEO
Communications LAB
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 12.

FROM: Jeff Draper, Director of Recreation and Community Services DATE: 06/13/2022
SUBJECT: Amend the Senior Transportation Agreement with California Yellow Cab

RECOMMENDATION
Approve an amendment to the Senior Transportation Agreement with California Yellow Cab.

DISCUSSION
In June 2021, the District entered into a three-year agreement with California Yellow Cab to provide two transportation programs for residents age 60 and older, the Nutrition Taxi and Taxi Voucher programs. California Yellow Cab has provided senior transportation services for the District since 2006 and has provided excellent service to the City and its senior participants.

In March 2022, California Yellow Cab submitted a written request seeking an increase to the contracted transportation rates due to “national inflation” stating that the cost of services essential to performing their daily services have risen over 30%. This includes the cost of vehicles, vehicle repairs, towing, insurance, driver compensation, and fuel costs. As costs have increased, California Yellow Cab requested a $5 increase for each one-way trip to and from the Senior Center for the Nutrition Taxi and a $4 increase to the cost of every Taxi Voucher used. To continue providing senior transportation services, California Yellow Cab has agreed to a compromised rate increase of $3 increase for each one-way trip to and from the Senior Center for the Nutrition Taxi and a $4 increase to the cost of every Taxi Voucher used . These increases would go into effect on July 1, 2022 and remain for the duration of the agreement.

The Nutrition Taxi and Taxi Voucher programs are summarized below:

Program Description of Program Costs
Nutrition
Taxi
Transportation to and from the Senior Center for
the in-person Lunch Café Program.

Average of four to six passengers three days per
week.

Eligible seniors receive transportation at no cost.

City currently pays $12.00
per passenger trip.

The compromised rate will
increase to $15.00 per
passenger trip.

Taxi
Voucher
Curb-to-curb service taxi service for nutrition,
medical, personal care, shopping, and
social/recreation visits to the Cypress Senior
Center.

Approximately 100 residents participate in the
program.

Eligible seniors receive up to six vouchers per
month at no cost.

Participants pay the difference for fare, if needed.

City currently pays $11.00
per voucher.

The compromised rate will
increase to $15.00 per
voucher.

Based on current ridership levels, the compromised rates would increase the annual cost of senior transportation programs by approximately $12,800. The Senior Mobility Program (SMP), funded by Measure M2, pays up to 80% of the costs and the City pays 20% of the costs. RCS received one other bid in response to the 2021 Senior Transportation Request for Proposal and the cost of that proposal exceeds California Yellow Cab's proposed rate increases. California Yellow Cab remains the most cost-effective senior transportation option for the District.

BUDGET IMPACT
Based on current ridership levels, sufficient appropriations are available in the District’s FY 2022-23 Proposed Budget for the recommended Senior Transportation Program cost increases. Eighty percent of the costs will be reimbursed through the Senior Mobility Program (SMP) as provided by Measure M2, Orange County’s half-cent sales tax for transportation improvements approved in 2006 for a 30-year period.

LEGAL REVIEW
The City Attorney has approved the first amendment to the agreement as to form.

APPROVED BY: Peter Grant, City Manager
Attachments
California Yellow Cab Rate Increase Request
California Yellow Cab Amendment 1

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 13.

FROM: Matt Burton, Director of Finance and Administrative Services DATE: 06/13/2022
SUBJECT: Approve an Amendment to Section 21A-15 of the Municipal Code Related to the Disposition of Surplus Supplies and Equipment

RECOMMENDATION
Introduce for first reading an Ordinance, by title only, amending Section 21A-15 of the Municipal Code regarding the disposition of surplus supplies and equipment.

DISCUSSION
Section 21A-15 of the Municipal Code prescribes the processes required to dispose of surplus equipment and supplies. Items declared surplus that no longer have an identified use for the City must be bid for disposition or sold for the highest scrap value. Recently, the City has used a public bidding website to comply with these disposition requirements.

The City occasionally replaces furniture and equipment and while most of these items are dated and have a negligible market value, they could be of value to local non-profits or governments that are otherwise unable to purchase new equipment. In general, the benefits of donating surplus equipment to these entities is expected to exceed the value of proceeds from the sale of these items.

The proposed amendment to Section 21A-15 would allow the City Manager to declare certain office furniture and equipment as surplus and allow the items to be donated to local non-profit organizations and other governments. All non-profits that participate in the Non-Profit Grant Request Program will be notified when items become available for donation.

Any entity requesting a donation must demonstrate the need for the item(s) and must utilize the item(s) for their operations. The City Manager will determine the entities selected to receive a donation based on the anticipated value to the community. The total cumulative value of any donated office furniture and equipment to a single non-profit or government cannot exceed $1,000 annually without City Council approval.

BUDGET IMPACT
Donating surplus furniture and equipment, rather than disposing by auction or for scrap Donating surplus furniture and equipment, rather than disposing by auction or for scrap value, will result in a small decrease in General Fund revenues. Such donations are expected to occur infrequently and be for items with a low market value, so any revenue declines are expected to have a negligible budget impact.

LEGAL REVIEW
The City Attorney has reviewed and approved the attached Ordinance.

APPROVED BY: Peter Grant, City Manager
Attachments
Ordinance
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITYOF CYPRESS, CALIFORNIA, ADDING SECTION 21A-15(d) TO THE CYPRESS

MUNICIPAL CODE ESTABLISHING REGULATIONS ALLOWING THE

CITY MANAGER TO SURPLUS OFFICE FURNITURE AND RELATED
EQUIPMENT WITH AN ESTIMATED VALUE OF LESS THAN $1,000
WHEREAS, the City periodically replaces city-owned office furniture, office equipment and supplies which creates unneeded city-owned property with a negligible dollar value; and
WHEREAS, section 21A-15 of the Cypress Municipal Code provides that all equipment or supplies that do not have an identified use for the City are considered surplus and must go through either a bidding process for disposition of such items or can be sold for the highest scrap value obtained.

WHEREAS, some office furniture and office equipment and supplies determined to have a negligible fair market value may be of use to local non-profits and/or other local public agencies.

WHEREAS, donating such office furniture and office equipment and supplies to local non-profits and/or other public agencies will be for the common benefit of the community with negligible financial impacts to the City.

NOW, THEREFORE, the City Council of the City of Cypress DOES HEREBY ORDAIN as follows:

SECTION 1. Section 21A-15(d) of the Cypress Municipal Code is hereby added to read in its entirety as follows:
“Sec. 21A-15(d).
d. The city manager or designee is authorized to declare surplus office furniture, office equipment and supplies (with a negligible fair market value) as eligible for distribution to local non-profit organizations and local public agencies rather than disposal through a formal bidding or auction process.

All non-profit agencies that participate in the Cypress Non-Profit Grant Request Program will be notified when such items become available for donation.

Any entity requesting a donation must demonstrate a transparent need for the item(s) and must utilize the item(s) as part of their operating activities. The city manager or designee will determine the entities selected to receive a donation based on overall value to the community. The total cumulative value of any donated office furniture, office equipment and supplies to a single non-profit or local public agency cannot exceed $1,000 annually.

SECTION 2. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or portions thereof be declared invalid or unconstitutional.

SECTION 3. The City Clerk shall certify to the passage of this Ordinance and this Ordinance shall be published as required by law and shall take effect as provided by law.

FIRST READING at a regular meeting of the City Council of the City of Cypress held on the _______ day of ________, 2022 and finally adopted and ordered posted at a regular meeting held on the ______ day of _____, 2022.
___________________________
Paulo Morales, Mayor
ATTEST:
__________________________
Alisha Farnell, City Clerk

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS
I, Alisha Farnell, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing was duly adopted at a regularly scheduled meeting of said City Council held on the ____ day of ______________, 2022, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
__________________________
Alisha Farnell, City Clerk
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 14.

FROM: Jeff Draper, Director of Recreation and Community Services DATE: 06/13/2022
SUBJECT: Approve Expenditures for the Cypress Recreation and Community Services Foundation

RECOMMENDATION

1. Authorize expenditures not to exceed $5,000 for the purchase of beverages to be sold at the 2022 Salute to America; and

2. Authorize an expenditure of $2,844.45 to Friends of Cypress Recreation and Parks for reimbursement associated with the 2021 Community Festival; and

3. Authorize the creation of a bank account for the Recreation and Community Services Foundation.

DISCUSSION
The Cypress Recreation and Community Services Foundation (Foundation) is a recognized 501(c)3 formed in May 2019 to support and enhance safe, attractive, and high quality recreation facilities, programs, and services in the City of Cypress. The Recreation and Community Services department (RCS) strategic plan calls for the Foundation to explore opportunities to engage with the community and support the RCS. Since its inception, the Foundation has received $12,466 in donations. The City Council serves as the Foundation’s Board of Directors and must authorize its expenditures. Two expenditures are recommended, with no others expected in 2022.
2022 Salute to America
The Salute to America is scheduled July 1 from 5:30 to 9:30 p.m. at Cypress College and features food trucks, a live concert, and a spectacular fireworks show. This special event was first held in 2019 and was the first city-produced event with alcohol sales. The 2019 Salute was a success with no incidents reported due to alcohol sales. It is recommended that alcohol sales continue for the 2022 event and that the Foundation facilitate the sales to generate revenue to further its mission. The Foundation estimates net proceeds of $3,000. 2021 Festival
Traditionally, the Community Festival is organized by the Cypress Community Festival Association (CCFA) and three primary participants; Kiwanis Club of Cypress, Cypress Chamber of Commerce, and the Friends of Cypress Recreation and Parks (Friends). The 2021 Festival incorporated many changes including a fall date, expansion to Friday night, presale tickets, and different Saturday hours.

These changes challenged the primary participants and to ensure a successful Festival, RCS worked with the Festival to guarantee profits from beer sales for distribution to youth sports organizations. In 2019, Friends sold beer at the Festival and reported a $3,500 profit and RCS committed that Friends would receive an equal profit in 2021. After expenses, CCFA remitted $655.55 to Friends, representing the reported profit of beer sales (attached). Friends has requested the difference between $655.55 and $3,500 ($2,844.45) from RCS to account for the lost beer sale revenue.

Foundation Banking
Because the Foundation is a legally separate entity from the City or District for Internal Revenue Service purposes, the creation of a separate bank account exclusively for Foundation activities is recommended. A separate bank account further ensures Foundation activities are properly segregated and accounted for, while enhancing transparency and audit requirements.

BUDGET IMPACT
The Foundation has $12,466 in donations and the recommended actions are expected to result in $12,622 being available after the 2022 Salute to America.

Foundation Donations to Date $12,466
Estimated Revenue from 2022 Salute to America
Beverage Sales $8,000
Estimated Expenditures for 2022 Salute to America
Beverage Sales ($5,000)
Friends Reimbursement for 2021 Festival ($2,845)
Estimated Available Balance after 2022 Salute to
America $12,621
LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
CCFA Beer Sales Report

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 15.

FROM: Douglas Dancs, Director of Public Works
DATE: 06/13/2022
SUBJECT: Award a contract for HVAC Maintenance and Repair Services

RECOMMENDATION
Award a two-year contract to Control Air Enterprises, LLC for Heating, Ventilation and Air Conditioning (HVAC) maintenance and repair services in the amount of $36,676 annually.

DISCUSSION
The City contracts out HVAC maintenance and repair services at all City-owned facilities.

These services include tri-annual inspection of the HVAC units, air filter replacements, and minor repairs that are necessary to keep the units operational. The existing two-year contract with Control Air Enterprises will expire at the end of the fiscal year.

A competitive bid process was initiated earlier this year and on April 19, the City received four bids that ranged from $36,676 to $93,371. Control Air Enterprises, LLC, the City's HVAC contractor since 2020, is the low bidder and has performed this type of work for other local agencies such as Cerritos, Irvine, and the Los Angeles County Office of Education.

The contract recommended for award will cost approximately $1,500 less annually than the current contract due to the replacement of the HVAC units in the police department which have more efficient, self-diagnosing technology. Larger scale HVAC repairs outside the scope of this maintenance contract are competitively bid separately as needed. A summary of the relevant award information is attached. The new contract will start July 1.

BUDGET IMPACT
Sufficient funds are available in the FY 2022-23 Proposed Budget to provide the level of maintenance services provided for in the contract.

LEGAL REVIEW
The City Attorney has approved the agreement as to form.

APPROVED BY: Peter Grant, City Manager
Attachments
Award Information and Bid Proposals
Contract Agreement
Project Award Information Checklist
Description of Project:

The project scope provides HVAC maintenance/repair services at City owned facilities.

Contract Working Days: Two Calendar Years
Orange County Register
Publication Date:

N/A
Notice Inviting Bids Sent to: The City Website, City Hall, Police Department, Community Center, F.W. Dodge, Reed Construction
Data, Construction Bid Board, Ebidboard, Southern
California Builders Association, The Blue Book,
Association General Contractors of America
Bid Opening Date: April 19, 2022
No. of Bid Packets Requested: Ten
Bidders Amount

1. Control Air Enterprises, LLC, Anaheim, CA $36,676

2. Pacific West Industries, Inc., Anaheim, CA $63,464

3. F.M. Thomas Air Conditioning, Inc., Brea, CA $68,681

4. Allison Mechanical, Inc., Redlands, CA $93,371
Apparent Low Bidder: Control Air Enterprises, LLC, Anaheim, CA – $36,676 Qualified to Perform Work: Yes. Staff confirmed bid was responsive.

Contractor’s License: Registration with DIR:

Valid at Time of Award: Yes Contractor: Yes
Valid at Time of Bid: Yes Sub-Contractor: N/A
Experience:

The apparent low bidder has performed this type of work for multiple government agencies in Southern California, including Cypress since 2020.

No.

1. 2.

3. 4.

5. 6.

7. 8.

HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 500M
PBQPOIAl, BID lffCe:t
SCHEDULE OF WORK rTEMI
HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 600M
Pl'OpOIIIBldSheet
Date: Tuesday, April 19, 2022, at 1:00 PM

THE CITY COUNCIL

CITY OF CYPRESS
CALIFORNIA 90630
Honorable Councllmemberl:

The underllgned principal, after having carefully examined the Specfflcation1 and General ProYlllona flW the City of Cypress HYAC MAINTENANC�EPAIR SERVICES - PROJECT SOOM, Mall'IIManee Contract. hereby propo11ee and agre81 to furnish all labor, materials, equipment, traneportation, aervtcea. 11111 1axel and other C0l1s neceH•Y to complete the entn proJect In atr1ct conformity with the apecfflcatlonl, general and 1peclal provlllona, and all addenda therefore • prepared by the Maintenance Dlvtaion of the Department of P\bllc Wortca Depertment d the City d Cyprea and to complete all wark within the contract tme specffled In thll PROPOSAL, for the following bid:

Annual
Qudty Unit
3 EA
3 EA
3 EA
3 EA
3 EA
3 EA
3 EA
1 LS
City of Cypress

SCHEDULE QF WORK -BABE IIP
(PIMM Prtnt Untt
llilnwofWOl'k
Pr1cN Wrttten In Word9)

CITY HALL/COUNCIL CHAMBERS - HVAC
.... - .... . - . ·--· ... ,_ .. - ' ... --- -...
..

MAINTENANCE/REPAIR SERVICES
PEREA
__ .. _,, _____ , -.......... .. --- . ........ ------··---- P9LICE DEPARTMENT - HVAC MAINTENANCE/REPAIR

SERVICES
..
.-PEREA
----· .. ____ -- _.,, ... ... -------··---- - ----·-
SHOOTING RANGE - HVAC MAINTENANCE/REPAIR.

SERVICES
...... ·- .. . --·
PEREA
··-------··-· - -- .. ---· .... -··--·----

COMMUNITY CENTER -HVAC MAINTENANCEJREPAIR
··••·--· .. --- -- ·--- ____ ..,, - -··········-- - ♦--·

SERVICES
·-·- --··----♦- ...... . -
PEREA
- . . .......... _ ... ____ ............ ,_ ·----
SENIOR CENTER - HVAC MAINTENANCE/REPAIR -·---- ··-· ·-·-----·----

SERVICES
.... ·-·- ---··
PEREA
·--·-·· ··-··"' ...
.... _ --·-------·- . ·---·---
··--·--.... -...... . ... ----
--

CORPORATION YARD -HVAC MAINTENANCE/REPAIR
. ________ .. ___ ---- .. ---··--·--·--·-

SERVICES
.. . -
PEREA
----··---··- ........ -- -·-· ----- -- -

ARNOLD CYPRESS PARK - HVAC MAINTENANCE/REPAIR
- .. -- -----·-·-... ·----

SERVICES
-·- -·---·--···-·-----··
PEREA
-

CONSUL TANT CONTINGENCY
. .... - ····----··· -·
-·---·-·---- ·-· ... ----·
- --··· --
.. --·-- ..
-- -- - - .. ......... , .... _ ..... --···-·- ..... _ ·-·--- ---- ·-.. - - ··--

LUMP SUM
---
Public Works Department
Unit
PrlOI Total
$ S $6,691
$ s
$3,988
$ $
$12,074
$ s
$5,492
s s
$2,617
s
$3,340
s
$474
12,000 12,000

HVAC MAINTENANCE/REPAIR SERVICES - PROJECT SOOM

PROPOSAL
CITY OF CYPRE88
HVAC MAINT£NANC!/REPAIR SERVICES - PROJECT 500M
The unde'9igned bidder afflnna that he/she:

Proposal
a. Hes noted and la fully informed • to the conditiOnl outlined In the liquidated damages provlalons of the Specfflcatior11.
b. Hee aatiafled hfmaolf/haraeff by peraonat examination of the location of the propoaed work and such other means that he/&he may prefer, as to the actual conditions and requirements of the work, and helahe ahall not d/apute, complain, or anert at any timl after submlnion of the bid that thete wu any misunderstanding in n,gard to the nature and/or amount of work to be done.
c. la aware that au propguls muat be In the office to the Ctty Clertt no later than:

Ivffllly. April 11, 2022, at 1:00 PM,
d. la aware that the City of Cypreaa reserves the right to reject eny and all propoeals. e. Hes submitted wtth thJa propoaal a certtflcate ahowlng proof of pertlclpatlon as a signatory to a r9C0gl1ized apprentkleahlp and/or training program, If required. f. Has attached to thl1 Proposal Caah, or a Ctahier'B Chedc or Certlflad Check In favor of the City of Cypress, In an amount equal to at leost ten peroent (10%) of the 10tal bid, or a Bid Bond for uid amount In the form fumtehed by the City, with the understanding that 98Id security shall be held by the City untll the Agreement for doing the work h8I been enta,.d Into that saJcf security aheU be forlelted to the City ea liquidated damsgaa ahould the undetalgned fai to enter Into a contrad end fumlgh the requtAld bonds and Insurance within agtN1
the time specified In the Contract Doc:uments, if awarded the Conttact; and the underllgned that In the e\Wlt of auct, failure, the actual amount of damagea to the City would be impractical and extremely dlfflcutt to determine.

Please lndlcale whether proprtetor&hlp, corporation or partnership and any use of fictitious bus.ineaa name: ii CorporatJon □ Partnership a ProprlefDnlhip
DATED: 4/19/2022
FIRM NAME: Control Air Enterprises. LlC
FIRM ADDRESS: 5200 E La Pal a Ave Anaheim, CA 92807
CityofC�I
Public Works Department
No.

1. 2

3. 4,
!5.

6. 7
-

8. HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 500M

PROPOSAL DIP SHEET

SCHEDULE OF WORK ITEMS
HVAC MAINTENANCEJREPAIR SERVICES - PROJECT 500M
P
roposal Bid Sheet
Date: Tuesday, Aprll 19, 2022, et 1 :00 PM

THE CITY COUNCIL

CITY OF CYPRESS
CALIFORNIA 00830
Honorable Councilmembers:

The undersigned prfnctpal, after having carefuny examined the Specifications and General Provisions for the City af Cypreaa HVAC MAINTENANCE/REPAIR SERVICES - PROJECT SOOII, Malnwnance Contract, hereby propoHI and agrNS to furnish aR labor, meterlals, equlpmert, transportation, ,ervioos, sales taxes ar.a other coats necessary to complete the entire project In strict conformity with the specifications, general and specie! provisions, and all addenda therefore as prepared by the Maintenance OIVlslan of the Department cl Public WO/ks Department of the City of Cypress and to complete all wen within the contract time specified In this PROPOSAL. for the following bid:

Annual
Quantity Unit
3 EA
3 EA
SCHEDULE QE WORK .. BASE IIP
llllmt of Work
(PINN Print Unit P11cH Wrttt.n In Worell)

CITY HAU/COUNCIL CHAMBERS - HVAC

MAINTENANCEIREPAIR SERVICES
. -- --
PEREA
PQ.LICJ: OEP�ENT-: HV�C ��TE�CE/fl_Ef»�R

SERVICES
PEREA
SHOOTIN� �NGE · HVAC MAINTEN�NCE/ReP��
Unit
Pr1ce Total
$2,491 $7,473
S 1,993 $5,979
3 EA SERVICES $ 9,511 $28.5�
3 EA
.l EA
3 EA
3 EA
1 LS
City of Cypreaa
?EREA
COMMUNITY CENTER - HVAC MAINTENANCE/REPAIR - ..

SERVICES
PEREA

SFNIOR CENTER- HVAC MAINTENANCE/REPAIR

SERVICES
-
PEREA
CORPORA 1 IOt-. VARO - HVAC MAINTENANCE/REPAIR
SERVlceS
PEREA
ARNOLD CYPRESS rARK - HVAC MAINTENANCE/REPAIR

SERVICES
PEREA

CONSULTANT CONTINGENCY
-- - -

LUMP SUM
-- - --
Public Works Department
$ 1,828 $5,484
$1,869 $5,607
$1,546 S 4,638
$1,243 $ 3,729
$2,000 $2,000
·-
HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 500M Proposal Bid Sheet ITEMS 1 -8, TOTAL ANNUAL AMOUNT OF BIO: S 63,464 ---------------- ITEMS 1-8, TOTAL ANNUAL AMOUNT OF BID IN WORDS: Sixty-Three Thousand, Four-Hundred Sixty-Four Dollars and zero am.ta--.-.-------------------------------------------- oo11a,�
(Please Print Total Amount of Bid In WORDS)
CONTRACT TIME: It Is underatood and agreed that the time limit for the completlon of the above work shaU be within TWO (2) calendar yeans of the commencement date given on the Notice to Proceed, and that required overtime and other costs are a part of the bid as noted above.

CONTRACT AWARD: This contract will be awarded to the lowest responsible bidder baaed on the Total Annual Scheduled Work Bid Price lflted above. Thia is a maintenance contract. The City reserves the rtght 10 add or delete wor1< In the City's sole discretion 10 best provide the service.

BID ADDENDA: Bidders who purch8M plant and specifications at the City shall be placed on a bidders lilt, and shall rec:elve any Issued Bid Alldcnda. Bidders, who obtain plans and apeclflcstionS from plan rooms or other sources, are responstble to contact the Public Wor1<s Department, Maintenance Division at 71-i-229- 6760, In order to be placed on the Bidders List and receive any Issued Addenda. Bidd� shan aubmlt a tlgned copy �fall Issued Bid Addenda with their bid. FaHure to do so, may subject lheir bid to rejection.

City of Cypress
Public Works Department
tiai.ftCIWld:ilncl·■ ='. � . .w ... � v.------.-�L..._ ... :+H:::! .. . . ·..I.A..•"¼· • - �""'�� . . -,..ll'oll!JWll"l!I � ..... :JJJ """ �� .. . � :t:raodft1��..,__,D'#peru•�·-• ..... or:w_.·__,M01G
·
·�•,o.tn�«b•tNW.•�•---.•·wN.._�.,,.� .tif �-� .. W._.. Nlhd'dliJdlt,:�.«;.-,ttlit Qh..M)ffll. �t)��
c,f.,,._-t,IQ..-· .......... llff �·!St ln�:···--�llh.OUAt fk ra..,.,_·#.tlil � mul\i»t.tb.� fl>Melt� 11a llifii'lilln:. ·tu ...... , .... , •. ,.,., 'lit.,..Mh�r.1.e;,i· ... ...._the·•��·�•----,i••
.Hp�wftldhlil.
jQI � .111�--.·blifitlnQ � 1f' •.-..-..,,,..-·,..
,�•·..,_.,._�tlf
..
. . � ....,_ .,.,...,,_a�--.

DA�· . A�ril 19.,_ � .

FIRM tfAME: Pa.dflc Wett Indutria_Inc..

FIRM �S: 4051 Ela Palma Suite A, Anah�.� �7
·�•. (866) 328-2129
No.
t.

2. 3.

4. 5.
e.

7. 8.

HVAC MAINT�PAlR SERVICES - PROJECT 500M Propo&,18ldStl99t sclilfflr=G��
KYM: MAMl!NANCEIREPAIR SERVICES - PROJICT 900M
Date: Tuesday, Aprn 19, 20Z'l. at 1:00 PM
THE CITY COUNCI.

CITY OF CYPRESS
CALIFORNIA 80830
Honanlblll CounclmtMbert:

The u.ndeliig,,ed. prtnclpal. after havr,g careti.ty examined the Spec:fficaliona and Gerwal PNMllona far lhe City
hanJby proposes and agrees ID f\mfeh all
of C)tnU HVAC IIAINTENAHCEIRl!PAIR l&RYICel - PROJECT 500M. lllllnltmnco Conlnot. labor, mat.rills, �� transportalion. 19V1C88, ulN talc9I •nd other 00111 n«:HHIY to complete the.,._ pn,Jfct fl alrtcl c:onbmly wtth the-� general Md a_pec:tm provllkn, Ind Ill addenda thenlb• .. prepared b-/ the Mainllnance DMlal of htl)epMment ti Publlc
In this PROPOSAL.

Works Departmn
for lhe followq bid:
of the Cly of Cyp,w and 10 c:amplelt al wo,tc within the u,nnct time IP8Cffled Annual
Quaatlly Uni
3 EA
3 EA
3 EA
3 EA
3 EA
3 EA
3 EA
1 l8
City of Cypress
SCHEDULE QF WOftk-IHI 11>
(PIMNPrlntUnl
lllnaofWofk
PIICMWIMlln'9tw.ds)
ctrY

MAINTENANCE/REPAIR
HAU./COUNCI. CHAMBERS - KVN:.

SERVICES
PEREA
POLICE DEPARTMENT� HVAC ��AIR_
j=�
-
SHOOTING RANG� - HVAC ��AIR

SERVICES
PEREA
COMMl.NTY ceNTER- HVAC MAINTENANCf:JREPAIR

SERVICES
PEREA
SENIOR CENTER-HVAC MAINTENAN�EPAIR

SERVICES
-·
PEREA
CORPORATION YAA.0 - HVAC MAINTENANCE/REPAIR

SERVICES
ARNOLD
Flt:REA
CYPRESS PARK - HVN:. MAINTENANCE1REPAIJ\

SERVICES
PEREA

CONSULTANT CONTINOENCV

LUMPSUM
-
- ---
-- -
- -�
Pubic Works Department
Unit
Pltce Total
$7,562.0C $22,686.00
$6,876.0( $20,628.00
$3,275.00 $9,825.00
$2,353.00 $7,059.00
$400.00 $1,200.00
$1,461.00 14,383.00
$300.00 $900.00
$2,000 $2,000
HVAC MAINTENANCE/REPAIR SERVICES -PROJECT 500M Prop01al Bid Sheet ITEMS 1 - I. TOT AL ANNUAL AMOUNT OF Bl>: $ ____ 6 ___ 8 .... , 6 ___ ____ 8 1--'. Q --'
Q _________ _
ITEMS 1-8, TOTAL ANNUAL AMOUNT OF BID IN ¥10R08: ___________ _ Sixty-eight thousand
(Please
six hundred eighty-one 0/100
Prtnl Total Amourt rl Bid In WORDS)
DoUars
CONTRACT TIME: It la undnlOod and as,eed that the time limit for the completion d the abo1M work lhaU be within TWO (2) calendar yen of the commencement data � on the Notice to Proceed, and that required overtime and other costs are a part of the bid as noted above.

CONTRACT AWARD: Thia contract will be awarded to the lowest ra1ponslble bidder based on the Total Anl'l.lal Scheduled Work Bid Pr1ce lilted above. This Ill a maintenance contract. The City raarves the right to add or delete work in the City's 101• dlscr8tion to beet provide the seNlce.

BID ADDENDA: Bidders who purchale plans and apeciftcallona at the City shall be placed on a bidder& llat, other
and shal receive any lllaued Bid Addenda. Bidders, who obtain plans and specifications from plan rooms or sources, n rwpo,-lble to contact the Public Works Depa1ment, Maintenance Division at 714-229- 6780, In order to be placed on the Bfddn List and recelw any llsued Addenda. Bidders 1half submit a signed oopy of all laaued 8'd Addenda with their bid. Falure k> do 10, may subject 1helr bid to rejection.

City of Cypress
Public Works Department
HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 500M

PROPOSAL

CITY OF CYPRESS

HVAC MAINTENANCE/REPAIR SERVICES - PROJECT SOOM
The undelsignad bidder affirms that he/she:

Proposal
a. Has noted and la fully Informed aa to the conditions outlined In the liquidated damages provisions of the Specfficatlons.
b. Haa aatllfled hlmaelf/heraeff by personal exaninatlon of the location of the propoeed work and such other means that he/she may prefer, aa to the actual condltiOnl and requirement& of the work, and he/she shall not dispute, complain, or asaart at any tine after subm1881on of the bid that there was eny misunderstanding In regard to the nature and/or amount of work to be done.
c. Is aware that all proposals must be In the office to the City Clerk no later than:

TUNClay. Aprll 18, 2022, at 1:00 PM.
d. la aware that the City of Cypress reserws the right to reject any and all propouls. e. Has submitted with this propoaal a certificate showing proof � partk:lpatlon as a signatory to a racogntmd apprenticeship and(or training program, ff required. f. Has attached to this Proposa Cash, or a Cashier's Check or Certffled Check In favor of the City of Cypress, In an amount equal to at least ten percent (10%) of the total bid, or a Bid seeurtty
Bend for said amount In the fonn furnished by the City, with the understanding that uld into that
shall
aeld Mcutty
be held by
shall
the City
be foffelted to
until the Agreement
the City
for
aa
doing
liquidated
the work
damages
has bean entered
llhould the
undersigned fall to enter Into a contract and fumlsh the required bond, and Insurance within the time apecffled In t,e Contract Documents, If awarded the Contract; and the undenslgned agrees that In ht event of such fallwe, the actual amount of damages to the City would be lmpnlCtiall and extremely dlfflcult to detennlne.

Pleeee Indicate whether proprtetorlhip, corporation or partnerlhlp and any use of fictltioua business name: II Corporation □ Partnership □ Proprlatorlhip
DATED: ---04/18/22
ARM NAME: F.M. Thomas Air Conditioning, Inc.

FIRM ADDRESS: 231 Gemini Ave, Brea, Ca 92821
TELEPHONE: 71 738-1062
SIGNATURE:_�-1-pc----:+::-:-t-
\L-___ _
City of Cypresa
Public Works Department
No.

1. 2.

3. ...

6. e.

7. HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 500M

SCHEDULE
PRQPQML 8IQ f'!fIT
OF WORK IT!M8
HVAC MAINTENANC!IREPAIR SERVICES - PROJECT 100M
Propcu Bid Sheet
bate: Tuesday, Ap,11 19, 2022, at 1 :00 PM

THE CITY COUNCIL
CfTY OF CYPRESS
CALIFORNIA 80830
Honorable Counclmembn:

The underllgned pr1nc:lpal, after hlvf111 careMy examined lhe Specfflcationa and GIIWBI Pnwlllonl for the hereby
City d Cyp,eu HVAC MAINTENANCEIREPAIR SERVICES - PROJECT IOOM, Mlllntlnlnee Conbact, propaees and ag,w to bnllh aU labor, rnatarlllla, eq� tra111portaaon, aerYlcN, lales taw and other coltl neca11ary to complete the e,1tfN project In ltrict conformity with the tpeclflcallol•, gm111at and ■pedal provllionl, and all addenda thereror9 a prepared by the Maintenance Dlvlllon d lhl Depariment d Public Works Oepartn,lnt d the City d Cypreu and 1D complete all work� the COllhd lime tpecffled In Ihle PROPOSAL, for the� bid:

Annual
QuMtlty Untt
3 EA
3 EA
3 EA
3 EA
3 EA
3 EA
3 EA
ICHEQULE Of WQBK • IMI IR
lllmaofWork
(PIIIH Print Unit Pltcll Wl'tllln In Wonll)
-CITY HAUJCOUNCIL CHAMBERS -HVAC - - MAl�AIRSERVlce8
PEREA

POLICE DEPARTMENT -HVAC MAINTENANCE/REPAIR

SERVICES
PEREA

SHOOTING RANGE -KV/IC MAINTENANCE/REPAIR

SERVICES
PEREA

COMMUNITY CENTER-HVAC MAINTENANCE/REPAIR

SERVICES
PEREA

SENIOR CENTER- HVAC MAINTENANCE/REPAIR
PEREA

SERVICES - CORPORATION YARD -HVAC MAINTENANCE/REPAIR

SERVICES
PEREA

SERVICES

ARNOLD CYPRESS PARK -HVAC MAINTENANCE/REPAIR
PEREA
Unll
Pltae Total
$6,398.00 $
19,194.00
•2,165.00 $ 6,495.00
516,109.00 s 48,327.00
$2,033.00 S 6,099.00
• 1.440.00 $ 4,320.00
s $
1,301.00 3,903.00
S 1.011.00 $ 3,033.00
,___ CONSUL TNiT CONTINGENCY --

8. 1 LS LUMP SUM $2,000 $2,000
-- -- ---
C
Public
ity d
WOtks
Cypren
Department
HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 600M PropoealBldSheet ITEMS 1-1. TOTAL ANNUAL AMOUNT OF BID: S_9_3._37_1_.00 __________ _ ITEMI 1 -1. TOTAL ANNUAL AMOUNT OF BID IN WORDS: NINETY THREE 1HOUSAND nnum HUNDRED SEVENTY ONE----------------- Dollars
(Pleae Print Total Amount of 8kt In WORDS)
CONTRACT TIME: It II undntood and agreed thal the time linlt for the completlon d the above work 1haU be Yt41hln TWO (2) calendar )18lr'I d the commencement date given on the Notice to Proceed, and that required

CONTRACT
OYlt1lme and other coetl are a pert d the bid • noted above.

Anrw1 Scheduled
AWARD: Thll COilbact .viii be IIWlll'dad lo the loweet reeponslble bldd• baled on the Total Work Bid Pr1ce lilted above. This II a rnu,tanance conlrllct The City reHNN the right to add or delete work In the Clty'a lole discretion to belt provide thl NNice.

BID ADDENDA: Bidder9 who purohaN plans and specfflcatlor11 at the Cltylhall be placed on I bldderl lflt. and 1hall receive 81fY uuad Bid Addenda. Bidders, Vttlo obtain plans and apectflcatlol,a from plan room, or other 1CUC81, are rwpontlble 1D contact the Public Worb Department. Maintenance DIYlalon at 714-229- 8760, In order to be placed on the Bidders Ult and natve any luUld Addenda. 8ldderl lhal eubmlt aligned copy d all lllued Bid Addenda with the� bfd. Flllure to do IO, may tubject their bid to rejection.

City" Cypress
Public Works Department
HVAC MAINTENANCE/REPAIR SERVICES - PROJECT 500M Proposal

CITY OF
PRQPO§AL
CYPRE88
HVAC MAINTENANCE/REPAIR SERVICES- PROJECT 500M
The undaralgned bidder affli 11 • that he/ahe:
a.
b.
c.
d.
e.
f
.
provillona
Has noted and Is fully Informed as to the conditions outlined In the Uquldated damage& of the SpeciftcatJona.

Has tatisfled hlmaetflherself by personal e>camlnation of the location of the propoeed work and auch other meana that he/she may prefer, aa to the actual conditions and requnments of the work, and he/she ahal not dlaputa, complain, or 8ll8l't at any time after aubmlaion of the bid that there was any misunderstanding In regard to the nature and/or amount of work to be done.

It aware that al propoaals must be In the office to the City Clerk no later tha,:

IYlfdlx, Apr111p.2022.111;00 PM,
la aware that the City of Cypress mffiN the right to reject any and al propault.

Haa aubmlttad with this proposal a certificate 1howfng proof cf participation n a signatory to a recognized apprenticeship and/or training program, If required.

Has attached to thla Proposal CUh, or a Caahier'1 Check or Certified Check In favor of the City of Cypress, In an amount equal to at leaat ten percent ( 10%) of the total bid, or a Btd Bond for aald amount In the form furnished by the aty, with the underetanding that 1&ld security lhal be held by the City until the Agreement for doing the work has been entered Into that said security ahal be forfeited to the City • llqu1dated damages should the undersigned faH to enter Into a contract and furnish the required bonds and imu'ance within the time apecffled In the Contract Documente, If awarded the Contract: and the undersigned agrees that In the event of such faffure, the actual amount of damagaa to the City would be Impractical and extremely dlfflcult to detennine.

Please Indicate whe1her proprietorship, corporation or partnership and any use of flctitioul bualneaa name: II Corporation a Partnership a Proprietorship
DATED: __ -'"A-=prl=--18....,, 2022='---------
FIRM NAME: __ A1_a.on_Mec1_-. __ •ca1__.
1 nc___________ . ______ _
FIRM ADDRESS: 1988 Euex Court. Redlands, CA 92373
TELEPHONE:_90914 __ 78-6833 _______ _
SIGNATURE: __ /_t_,_�--��- ---
Bldder
City of Cypreu
Don Alllaon, PrNldent -Allllon Mechlnlcll, Inc.

Public Wom Department

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 16.

FROM: Matt Burton, Director of Finance and Administrative Services DATE: 06/13/2022
SUBJECT: Receive and File the FY 2022-23 Master Fee Schedule

RECOMMENDATION
Receive and file the updated FY 2022-23 Master Fee Schedule which incorporates annual cost-of-living adjustments for City and Park District user fees.

DISCUSSION
In 2019, the City Council updated user fees for the first time in more than a decade. The updated fees were the result of a comprehensive fee study conducted by a consultant. In general, City user fees are established to recover the full cost of discretionary services provided to a user while Recreation and Park District fees are intended to provide sustainable subsidies to customers. To ensure fees keep pace with the costs to provide services, the 2019 resolution approving the Master Fee Schedule includes an automatic cost-of-living adjustment be applied to all user fees on July 1st of each year. The annual cost-of-living adjustment is based on the March Consumer Price Index (CPI) and is applied to fees in conjunction with the budget fiscal year. The FY 2022-23 Master Fee Schedule includes an 8.5% cost-of-living adjustment for all user fees established by the City and District.

Fines, developer fees, and fees set by the State of California remain unchanged, as these fees are not subject to the annual cost-of-living adjustment applied to user fees. The new fee schedule is effective July 1, 2022. However, because some programs must be advertised or billed well in advance of the new fees being established, some fee increases will be deferred until it is administratively feasible to implement the changes. For example, most changes to Recreation program fees will be deferred until the publication of the Fall Activity Guide.

BUDGET IMPACT
The fee adjustments are estimated to generate an additional $150,000 to $200,000 of annual revenue and have been factored into the FY 2022-23 Proposed Budget which will be considered for adoption on June 13, 2022.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
FY 2022-23 Master Fee Schedule
FY 2022-23 Master Fee Schedule (with changes)

Page 1 of 20 ends

Cypress City CouncilJune 13, 2022

Cypress City Council
June 13, 2022