Agenda — Fountain Valley City Council, June 7, 2022

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

FOUNTAIN VALLEY HOUSING AUTHORITY
Study Session 5:00 p.m.

Regular Meeting 6:00 p.m.

Tuesday, June 7, 2022
Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org

MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.

AGENDA COMMUNICATIONS: All revised or additional documents and writings related to an item on this agenda provided to all or a majority of the government body members after distribution of the agenda packet, are available for public inspection (1) in the City Clerk’s Office at 10200 Slater Avenue, Fountain Valley, CA 92708 during normal business hours; and (2) in the Council Chambers at the time of the meeting. Unless directed otherwise by a government body listed herein all actions shall be based on/memorialized by the latest document submitted as a late communication.

PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address th e Cit y Counci lor othe r government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor. Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.

CONSENT CALENDAR: All matters listed under the Consent Calendar are considered by the governing bodies listed herein to be routine and will be enacted on simultaneously with one motion without discussion unless separate action and/or discussion is requested by a governing body member, staff, or a member of the public.

PUBLIC HEARINGS: Persons wishing to speak in favor of or in opposition to a proposal are given an opportunity to do so during the public hearing. Those wishing to address a governing body during the hearing are requested to complete the speaker card and submit it to the City Clerk prior to the hearing. If a proposed action is challenged in court, there may be a limitation to raising only those issues raised during the hearing or in written correspondence received by the governing body at or before the hearing.

Note: The Fountain Valley City Council serves as the Successor Agency to the Fountain Valley Agency for Community Development (Successor Agency), the Fountain Valley Housing Authority, and the Fountain Valley Finance Authority. The Actions of the Successor Agency are separate and apart from the actions of the City Council.

ZOOM LINK INFORMATION
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STUDY SESSION
CALL TO ORDER 5:00 p.m.

PUBLIC COMMENTS (Study Session matters only)
Persons wishing to speak on a Study Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. The City Clerk will call upon those that wish to speak. • Regulation of Group Homes – Presentation by Alexandra Halfman, Deputy City Attorney

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION
SALUTE TO THE FLAG Council Member Ted Bui

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Grandis, Vo, Mayor Pro Tem/Vice Chair Constantine, Mayor/Chair Harper

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS

PRESENTATIONS
• City of Kindness Presentation to Rocky McKinnon
• Innovating Commerce Serving Communities 2022 Las Vegas Conference Recap – Presentation by Meghan Wishner, Management Aide

CITY MANAGER/MAYOR UPDATE

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
The Unscheduled Matters Public Comments portion will last 15 Minutes at the beginning of the meeting. Any requests to speak on unscheduled matters after the initial 15 minutes, will be heard at the end of the meeting, unless the Mayor approves an extension of this time. If an individual speaks during the First unscheduled matters time period, they do not get to speak at the end of the meeting as well. Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

PUBLIC COMMENTS (Scheduled Matters Only)
Persons wishing to speak on Agenda item(s) are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. Each person will be given up to 3 minutes to speak on the entire Consent Calendar, 3 minutes to speak on each item pulled from the consent calendar, and 3 minutes to speak on any agendized item(s) not appearing on the Consent Calendar.

CONSENT CALENDAR
Consent Calendar Items 1 – 7 will be approved simultaneously with one motion, unless separate action/or discussion is requested.

1. City of Fountain Valley Strategic Plan Review Update Page 6 Staff recommends that the City Council receive and file the June 7, 2022 updated Six-Month Strategic Objectives Matrix.

2. Adopt 7-Year Transportation Capital Improvement Program (CIP) for Annual Measure M (M2) Eligibility Program submittal For FY 2022-2023 through 2028-2029 Amend FY 2021-2022 7- Year Transportation Capital Improvement Program (CIP) to include 2 Projects Page 15 Staff recommends that the City Council adopt a Seven-Year Transportation Capital Improvement Program (CIP) for the Annual Measure M (M2) Eligibility Program submittal For Fiscal Years 2022-2023 through 2028-2029 and Amend the FY 2021-2022 Seven-Year Transportation Capital Improvement Program (CIP) to include two Projects.

3. Approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for Water Loss Control Technical Assistance for $23,680

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Staff recommends that the City Council approve Alternative No. 1, which is to approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance for $23,680.

4. Approve the Water Loss Control Shared Services Election Form for FY 22-23 with the Municipal Water District of Orange County Page 35
Staff recommends that the City Council approve Alternative No. 1, which is to approve the Water Loss Control Shared Services Election Form for FY 22-23 with the Municipal Water District of Orange County.

5. First Amendment to Agreement with AdminSure the City’s Self-Insured Workers’ Compensation Program to extend the agreement for a one-year term through June 30, 2023, not to exceed $100,000. Page 48
Staff recommends approval of first amendment to the agreement with AdminSure in the amount of $100,000, be renewed for a one-year term beginning July 1, 2022 through June 30, 2023 for the City’s self-insured Workers’ Compensation program.

6. Approve the Final Map for Tract No. 19115 for the property located at 9801 Starfish Avenue

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Staff is recommending that the City Council accept the final map for Tract No. 19115 for the property located at 9801 Starfish Avenue.

7. Approve the Cooperative Agreement between the City of Fountain Valley and the City of Huntington Beach for the Rehabilitation and Resurfacing of Newland Street from Slater Avenue to Talbert Avenue. Page 58
Staff recommends that the City Council: 1) Approve the Cooperative Agreement between the City of Fountain Valley and the City of Huntington Beach for the Rehabilitation and Resurfacing of Newland Street from Slater Avenue to Talbert Avenue.

PUBLIC HEARINGS
Each person will have up to 3 minutes to speak on each Public Hearing.

8. Municipal Code (FVMC) Which Includes A Sunset Date Of July 16, 2021 For The Allowance Of Permanent Outdoor Display And Sales For Grocery Stores Over 14,000 Gross Square Feet And Big Box Warehouse Retail Stores Over 130,000 Gross Square Feet – Presentation by Steven Ayres, Principal Planner Page 72
Introduce the attached Ordinance approving a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approving Code Amendment No. 22-01 to remove section 21.10.050(a)(2)(I) from the Fountain Valley Municipal Code (FVMC) which includes a sunset date of July 16, 2021 for the allowance of permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet.

ADMINISTRATIVE ITEMS

9. Adopt a Policy on Enhanced Noticing of Development Projects – Presentation by Colin Burns, Attorney for the City Page 83
The amount of notice above that required by State law is at Council’s discretion. Staff has no recommendation.

10. Consider and Approve Employment Agreement Between City of Fountain Valley and Maggie Le-Nguyen to Serve as City Manager – Presentation by Colin Burns, Attorney for the City Page 91 11. Resolution Adopting the FY 2022-23 Annual Operating Budget & Ten-Year Capital Improvement Program (Adoption of the ten-year Capital Improvement Plan consistent with Measure M2 Eligibility process), and Financial, Budget & Debt Policies and; Resolution Adopting the FY 2022-23 GANN Appropriations Limit and; Resolution establishing the FY 2022-23 Annual Schedule of Property Rental and Administrative Service Charges to the Municipal Water & Sewer Utility Funds – Presentation by Raul Godinez II – City Manager

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It is recommended that the City Council approve Alternative No. 1, which is to:

1. Adopt a resolution adopting the FY 2022-23 City of Fountain Valley Annual Budget and related schedules; Ten-Year Capital Improvement Plan; and Financial, Budget and Debt Policies. (Adoption of the ten year Capital Improvement Plan consistent with Measure M2 Eligibility process);

2. Adopt a resolution approving the FY 2022-23 Gann Appropriations Limit; and

3. Adopt a resolution establishing the FY 2022-23 annual schedule of property rental and Administrative Service Charges to the Municipal Water and Sewer Utility Funds.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL

COMMENTS

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is June 21, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: City of Fountain Valley Strategic Plan Review Update EXECUTIVE SUMMARY:

On November 18, 2021 the City Council held a strategic planning session to help clearly define the goals and priorities of the City. The City Council and management staff met to review the progress toward the previous set of six-month strategic planning objectives, and to establish a new set of objectives for the next six months. This report is the final update as to the progress staff has made toward accomplishing the six month objectives.

The City Council will be holding there next Strategic Planning Session on June 9th, 2022 to establish a new set of goals for the next 6 months.

DISCUSSION:

During the City’s Strategic Planning retreat on November 18, 2021, the City Council and management staff reviewed the previously established mission statement, three year goals and six-month strategic planning objectives. The strategic plan has and will continue to serve as a guideline for both the Council and staff as we work to achieve our goals over the next few years.

The mission statement that was developed in our Strategic Planning efforts is “The City of Fountain Valley delivers cost-effective quality public services to provide a safe and desirable community that enriches its residents and businesses.” The three year goals that the Council has adopted and staff has been working to achieve include:
 Maintain the culture and environment of “A Nice Place to Live”  Attract and retain revenue producing businesses
 Achieve fiscal stability in accordance with the 20-Year Financial Plan  Attract and retain quality staff
During the November 18, 2021 Strategic Planning Retreat six-month objectives were established in support of these goals. These objectives and staff’s progress toward achieving them are attached for your reference under Attachment No. 1.

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FINANCIAL ANALYSIS
There are no financial impacts related to this update.

ATTORNEY REVIEW:

City Attorney review was not necessary for this item.

ALTERNATIVES:

Alternative No. 1: Receive and file the updated Six-Month Strategic Objectives Matrix.

Alternative No. 2: Direct staff to take an alternate action.

RECOMMENDATION:

Staff recommends that the City Council receive and file the June 7, 2022 updated SixMonth Strategic Objectives Matrix.

Prepared By: Rick Miller, City Clerk
Approved By: Raul Godinez, City Manager
Attachment 1: Updated Six Month Strategic Objectives Matrix

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C I T Y O F F O U N T A I N V A L L E Y

SIX-MONTH STRATEGIC OBJECTIVES
N o v e m b e r 4 , 2 0 2 1 – M a y 1 , 2 0 2 2
THREE-YEAR GOAL: ENHANCE THE CULTURE AND ENVIRONMENT OF “A NICE PLACE TO LIVE”

WHEN WHO WHAT STATUS COMMENTS

DONE ON
TARGET
REVISE
D

1. At the Dec. 21, 2021
City Council meeting
Planning/Building Director
- lead, City Attorney,
Deputy City Manager,
Finance Director
Present to the City Council for consideration, options
to address short-term rentals in the city.

X
Presented to CC at 12/21
meeting as an administrative
item
New Planning/Building
Director to bring back
options for City Council to
consider in July 2022.

2. At the Feb. 1, 2022
City Council meeting
Community Services Dir. Present to the City Council for direction options for additional community events and services.

X Completed and new events
have been added to the
calendar for 2022.

3. By April. 15, 2022 Community Services
Director and the City
Manager
Present to the City Council an update on the Mile
Square Park expansion request to the county.

X
Revised date as
conversation with Orange
County are on-going.

4. By April 15, 2022 Deputy CM with
assistance from all
directors
Reinstate and enhance outreach / engagement
opportunities related to city-wide community services
and present to the City Manager.

X Revised until a permanent
city manager has been
selected.

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5. At the April 19, 2022
City Council meeting
Deputy CM – lead,
working with the Planning
/Building Dir., Finance
Dir., Fire Chief, Police
Chief, Public Works Dir.

Present to the CC for consideration an application to
LAFCO for annexing the county island at Edinger and
Harbor.

X 12/2/21 Zoom call with
LAFCO and County staff to
inquire about annexing north
island and clarification on
County/City agreement on
property tax sharing.

Requesting County staff on
financial data for City staff to
share with City Council.
1/27/22 Finance Director
received financial data from
HDL.
3/24/22 PW Director
confirmed Water and Sewer
collection services provided
by the City.
4/19/22 Presented property
and sales tax for north island
and City Council directed to
do resident survey in the
north island and find
information about southern
island.
5/9/22 LAFCO provided
information on southern
island annexation. Pending
survey sample(s).

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C
THREE-YEAR GOAL: ATTRACT AND RETAIN REVENUE PRODUCING BUSINESSES

WHEN WHO WHAT STATUS COMMENTS

DONE ON
TARGET
REVISE
D

1. At the Nov. 16, 2021
City Council meeting
Public Works Dir. –
lead and Deputy CM
Present to the City Council the results of the feasibility study regarding partnering with Internet providers to
provide the best internet service for residents and
businesses in Orange County.
x
11/16/2021 – PW Director
presentation to Council the
outcome of the research on
the feasibility of partnering
with ISP. All ISPs want
their own fiber-optic assets.

The city’s Fiber Optic
system is not sufficient to
provide city-wide
fiber/internet services.

Identified framework on how
to proceed with Frontier for
City-wide fiber optic
installation
1/18/2022 – PW invited
Frontier Network to present
to Council the plans to install
City-wide fiber optic.
2/1/2022 – PW Invited SiFi
to present to Council their
plan for City-wide fiber optic
4/5/2022 – SiFi
Development Agreement on
the agenda for Council
approval.

2. At the Feb. 15, 2022
City Council meeting
Planning Director Explore feasibility of container / "Steel Craft" restaurant / outdoor dining areas and report results to the City
Council.

X
Staff is preparing a Memo
for Council detailing current
regulations and feasibility.

Staff also approached
developers regarding the
potential for such uses at
ICSC in May 2022.

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3. By March 1, 2022 Finance Director Present to the City Manager a plan to E(electronically)- sign and issue simple business licenses.

X Information submitted to
Rob Houston Fall, 2021. City
already offers electronic
business license
submissions.

4. At the March 1, 2022
City Council meeting
Deputy CM - lead,
Planning Director and
Public Works Director
Present to the City Council for direction branding the FV Crossings Business Area with signage, beautification and marketing.

X Received quote for signage
and scheduled for study
session on March 1, 2022.

City Council directed staff to
work with Council
Committee on signage and
bring it back to future City
Council Meeting.
4/5/22 Staff met with Council
Committee and they directed
to rebrand the Crossings.
4/19/22 Staff received
direction to do a RFP for
rebranding of FV Crossings
Specific Plan.

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E
THREE-YEAR GOAL: ACHIEVE FISCAL STABILITY IN ACCORDANCE WITH THE 20-YEAR FINANCIAL PLAN

WHEN WHO WHAT STATUS COMMENTS

DONE ON
TARGET
REVISE
D

1. At the Feb. 1, 2022
City Council meeting
Finance Director –
lead and Budget
Manager
Present to the City Council analysis for UAL (Unfunded
Actuarial Liability) and funding strategy to accelerate payment.

X Presentation was made by
consultant, GovInvest on
UAL and OPEB funding
strategies. Staff will work
with consultant in
preparation of FY22/23
budget on recommended
amount of discretionary
payments.

2. By the March 1, 2022
City Council meeting
HR Director - lead,
Finance Director, City
Manager
Present to the City Council the findings and impacts of the Employee Compensation Study.

X Safety to be presented on
4/5/2022. Misc. groups have
been presented in closed
session and negotiations are
in process and moving
forward. Hope to complete
within the next month or two.

3. At the April 1, 2022
City Council meeting
Finance Director,
working with all
Directors
Identify and present to the City Council areas for savings to the city, and new revenue opportunities that do not
impact residents.

X
Will be discussed as part of
the budget process for
FY22/23. Target date
pushed back due to staffing
turnover and ERP project

4. At the April 15, 2022
City Council meeting
Finance Director –
lead and Public
Works Director
Present to the City Council the creation of a Facilities Replacement Fund.

X Will be discussed as part of
the budget process for
FY22/23. Target date
pushed back due to staffing
turnover and ERP project.

New date likely Summer
2022 when new Finance
Director is on board.

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F
THREE-YEAR GOAL: ATTRACT AND RETAIN QUALITY STAFF

WHEN WHO WHAT STATUS COMMENTS

DONE ON
TARGET
REVISE
D

1. April 5th,
Council
Meeting
Cross City Committee
with
oversite/assistance
from Ron Cookston
and Carrie Hanes
Engagement Team – Increase Engagement of staff for
teambuilding, equity, inclusion, retention and morale
X
Committee has been formed
with employees from various
departments with first
meeting held 3/14/2022.

Ideas to be presented to City
Council Summer 2022.

Cross City Team meeting
regularly. Using employee
satisfaction survey results
from Attraction Committee to
address areas of
improvement. Will seek
direction from Council on
initiatives, financial support,
and staffing levels in order to
successfully meet this
Strategic Goal.

2. March 15th,
Council
Meeting
Maggie Le, Matt
Sheppard, Carrie
Hanes, and Cross
City team
Attraction of Quality new staff, City Marketing and Branding X 1/5/22 and 1/20/22 Employee Attraction
Committee met to discuss
objective and identify
questions for employee
survey and recruitment
video. 2/7/22 - Completed
employee survey and
presented results to City
Council on 3/15/22. Hold on
recruitment video until
Engagement Team
completes their process to
proceed. Will seek direction
from Council on financial
support and staffing levels in
order to successfully meet
this Strategic Goal.

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3. March 1st
Council
Meeting
HyeJin Lee, Rob
Frizzelle, Carrie
Hanes, and team
Hiring process / On boarding improvements X Will need to be moved due to HCM ERP platform
extension to see what
capabilities the system has
to support On-Boarding
Process. Benefits OnBoarding implementation to
launch September 2022.

Staff to seek direction from
Council on additional
initiatives, financial support,
and staffing levels to
improve the Hiring/OnBoarding process in order to
successfully meet this
strategic goal.

Page 14 ends

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Adopt a Seven-Year Transportation Capital Improvement Program (CIP) for the Annual Measure M (M2) Eligibility Program submittal For Fiscal Years 2022-2023 through 2028-2029 and Amend the FY 2021-2022 Seven-Year Transportation Capital Improvement Program (CIP) to include two Projects.

EXECUTIVE SUMMARY:

Each year, Orange County cities are required to submit various items to the Orange County Transportation Authority (OCTA) to establish and maintain eligibility to receive Measure M (M2) funds. As part of OCTA’s renewed Measure M2 funding eligibility package for FY 2022-2023, it is a requirement that local agencies annually adopt a Seven year CIP and submit the adoption as part of the annual Measure M Eligibility package.

The attached Seven Year CIP is consistent with the City’s Ten Year CIP and includes all foreseeable transportation improvement projects which will involve Measure M funding for Fiscal Years 2022-2023 through 2028-2029 and Amend the FY 2021-2022 SevenYear Transportation Capital Improvement Program (CIP) to include two Projects.

It is recommended that the City Council adopt a Seven-Year Transportation Capital Improvement Program (CIP) for the Annual Measure M (M2) Eligibility Program submittal For Fiscal Years 2022-2023 through 2028-2029.

DISCUSSION:

Each year, Orange County cities are required to submit various items to the Orange County Transportation Authority (OCTA) to establish and maintain eligibility to receive Measure M (M2) funds.

This year, as part of OCTA’s renewed Measure M2 funding eligibility package for FY 2022-2023, the City of Fountain Valley is required to submit an Eligibility Checklist, as well as documentation related to the City’s 7-Year CIP, Maintenance of Effort (MOE), Pavement Management Plan (PMP) and a PMP resolution, and General Plan Policies that accommodate transit and active transportation. In addition to these requirements, and as part of OCTA’s renewed Measure M2 funding eligibility package for FY 2022- 2023, it is also a requirement that local agencies annually adopt a Seven year CIP and

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City Council Request
Measure M (M2) Eligibility Seven Year CIP Adoption FY2022-23-2028-29 June 7, 2022

Page 2 ends

submit the adoption as part of the annual Measure M Eligibility package.

The attached Seven Year CIP list is consistent with the City’s Ten Year CIP and includes all foreseeable transportation improvement projects which will involve Measure M funding for Fiscal Years 2022-2023 through 2028-2029. Projects included as part of the City’s FY2022-2023 submittal include the following:
 City-Wide Signal Timing Maintenance
 Citywide Arterial Roadway Rehabilitation Projects
 Citywide Signal Re-Timing
 Citywide Traffic Signal Communication & Fiber Optic Maintenance  Edinger Ave Pavement Rehabilitation (Engineering Design) – Newhope to Harbor  Edinger Ave Traffic Signal Synchronization
 Euclid Signal Synchronization (City of La Habra lead agency)  Euclid/Condor & Talbert/Bushard Signal Modifications
 Harbor Signal Synchronization (OCTA Lead)
 Heil – Euclid to Harbor and Ward from Edinger to North City Limits  Magnolia – Edinger to Heil (Westminster Lead)
 Magnolia Traffic Signal Synchronization Program (TSSP) Project  Newland – Slater to Talbert (Huntington Beach Lead)
 Protected Permissive Traffic (PPLT) Signal Improvements at Eight (8) Traffic Signals
 Slater Street TSSP
 Talbert Ave TSSP
 Traffic Signal System Equipment Improvements Citywide  Warner Ave TSSP
The submittal of the Seven-Year CIP does not commit the City to fund the listed projects.

However, for projects to be eligible to receive M2 funding, the City’s Seven-Year CIP needs to be identified on the adopted Seven-Year CIP list. Staff identified approximately $16,021,000 million in funded and unfunded projects on the Seven-Year CIP over the next seven years.

The FY 2021-2022 seven-year CIP will be amended to include the following projects as they were omitted last FY year due to being labeled as Operations and Maintenance as part of the budget development process; however, there was a recommendation by OCTA that they are included as part of the CIP list for Measure M Eligibility compliance:
 City-Wide Signal Timing Maintenance
 Citywide Traffic Signal Communication & Fiber Optic Maintenance

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City Council Request
Measure M (M2) Eligibility Seven Year CIP Adoption FY2022-23-2028-29 June 7, 2022

Page 3 ends

FINANCIAL ANALYSIS:

The adoption of the Seven-Year CIP has no direct fiscal impact but will help maintain the City’s eligibility for receipt of Measure M2 funds.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the attached seven-year CIP list.

ALTERNATIVES:

Alternative No.1: Adopt a Seven-Year Transportation Capital Improvement Program (CIP) for the Annual Measure M (M2) Eligibility Program submittal For Fiscal Years 2022-2023 through 2028-2029 and Amend the FY 2021-2022 Seven-Year Transportation Capital Improvement Program (CIP) to include two additional projects listed above.

Alternative No. 2: Do not Adopt a Seven-Year Transportation Capital Improvement Program (CIP) for the Annual Measure M (M2) Eligibility Program submittal For Fiscal Years 2022-2023 through 2028-2029 and do not Amend the FY 2021-2022 Seven-Year Transportation Capital Improvement Program (CIP) to include two Projects. This is not the recommended action as it would make the City ineligible for Measure M2 funding.

RECOMMENDATION:

Staff recommends that the City Council adopt a Seven-Year Transportation Capital Improvement Program (CIP) for the Annual Measure M (M2) Eligibility Program submittal For Fiscal Years 2022-2023 through 2028-2029 and Amend the FY 2021-2022 SevenYear Transportation Capital Improvement Program (CIP) to include two Projects.

Prepared by: Terri Phan, Administrative Assistant
Reviewed by: Temo Galvez, Deputy Public Works Director/City Engineer Approved by: Hye Jin Lee, Director of Public Works
Fiscal Review by: Ernestine Jones, Interim Finance Director/City Treasurer Approved by: Raul Godinez II, Interim City Manager
Attachment 1: Fountain Valley Seven Year CIP list for FY’s 2022-23 through 2028-29

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5/26/22, 7:56 AM https://ocfundtracker.octa.net/CIP/report_project_listing https://ocfundtracker.octa.net/CIP/report_project_listing 1/6 Orange County Transportation Authority
FY 2022/23 - FY 2028/29 Capital Improvement Program
TIP ID CP-10027 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: TI160 City-Wide Signal Timing Maintenance Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
City-Wide Timing Maintenance Project on as needed basis. This project is an integral part of the City's continuing effort to ease congestion, reduce delay and improve traffic flow.

Limits
City-Wide Signal Timing Maintenance
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2024 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2025 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2026 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2027 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2028 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 2029 Measure M2 Local Fairshare $50,000 $0 $0 $0 $50,000 $50,000 Totals: $350,000 $0 $0 $0 $350,000 $350,000
Last Revised: 22-00 - In Progress Total Programmed: $350,000 TIP ID CP-10022 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: Citywide Arterial Roadway Rehabilitation Projects Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance - Rehabilitation of roadway This project will remove and reconstruct deteriorated roadway and improve medians, curb and gutter, pedestrian ramps, driveways and adjust utility access portals.

Limits
Citywide
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $0 $0 $0 $0
2024 Measure M2 Local Fairshare $0 $0 $0 $0 $0 $0
2025 Measure M2 Local Fairshare $0 $0 $500,000 $0 $500,000 $546,364 2025 Local Streets and Roads apportionments $0 $0 $1,000,000 $0 $1,000,000 $1,092,727 2026 Measure M2 Local Fairshare $0 $0 $500,000 $0 $500,000 $562,754 2026 Local Streets and Roads apportionments $0 $0 $1,000,000 $0 $1,000,000 $1,125,509 2027 Local Streets and Roads apportionments $0 $0 $1,000,000 $0 $1,000,000 $1,159,274 2027 Measure M2 Local Fairshare $0 $0 $500,000 $0 $500,000 $579,637 2028 Measure M2 Local Fairshare $0 $0 $1,500,000 $0 $1,500,000 $1,791,078 2029 Measure M2 Local Fairshare $0 $0 $1,500,000 $0 $1,500,000 $1,844,811 Totals: $0 $0 $7,500,000 $0 $7,500,000 $8,702,154
Last Revised: 22-00 - In Progress Total Programmed: $7,500,000

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5/26/22, 7:56 AM https://ocfundtracker.octa.net/CIP/report_project_listing https://ocfundtracker.octa.net/CIP/report_project_listing 2/6 TIP ID CP-10025 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: Citywide Signal Re-Timing
Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Coordinate signals within project limits The Re-timing of all 52 traffic signals City-Wide.

Limits
Citywide
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2024 Other $0 $0 $175,000 $0 $175,000 $185,658
2024 Measure M2 Local Fairshare $0 $0 $25,000 $0 $25,000 $26,522 2027 Measure M2 Local Fairshare $0 $0 $25,000 $0 $25,000 $28,982 2027 Other $0 $0 $175,000 $0 $175,000 $202,873
Totals: $0 $0 $400,000 $0 $400,000 $444,035
Last Revised: 22-00 - In Progress Total Programmed: $400,000 TIP ID CP-10029 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: TI267 Citywide Traffic Signal Communication & Fiber Optic Maintenance Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications Maintenance of the City's Traffic Signal Communication Fiber Optic Network Limits
Citywide
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $35,000 $0 $35,000 $36,050 2024 Measure M2 Local Fairshare $0 $0 $35,000 $0 $35,000 $37,132 2025 Measure M2 Local Fairshare $0 $0 $35,000 $0 $35,000 $38,245 2026 Measure M2 Local Fairshare $0 $0 $35,000 $0 $35,000 $39,393 2027 Measure M2 Local Fairshare $0 $0 $35,000 $0 $35,000 $40,575 2028 Measure M2 Local Fairshare $0 $0 $35,000 $0 $35,000 $41,792 2029 Measure M2 Local Fairshare $0 $0 $35,000 $0 $35,000 $43,046 Totals: $0 $0 $245,000 $0 $245,000 $276,233
Last Revised: 22-00 - In Progress Total Programmed: $245,000 TIP ID CP-11819 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: Edinger - Newhope to Harbor
Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance - Rehabilitation of roadway This project will improve the arterial by resurfacing the street with asphalt concrete from curb to curb. This project will also replace curb & gutter, bus pads, pedestrian ramps and sidewalk panels that are damaged or are not ADA compliant. This pro Limits
Edinger Avenue from Newhope Street to Harbor Boulevard
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $120,000 $0 $0 $0 $120,000 $120,000 2024 Local Streets and Roads apportionments $0 $0 $1,000,000 $0 $1,000,000 $1,060,900 2024 Measure M2 Local Fairshare $0 $0 $700,000 $0 $700,000 $742,630 Totals: $120,000 $0 $1,700,000 $0 $1,820,000 $1,923,530 Last Revised: 22-00 - In Progress Total Programmed: $1,820,000

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5/26/22, 7:56 AM https://ocfundtracker.octa.net/CIP/report_project_listing https://ocfundtracker.octa.net/CIP/report_project_listing 3/6 TIP ID CP-11454 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: 16-IRVN-TSP-3791 Project Title
Additional Project IDs: TI287 Edinger Ave Traffic Signal Synchronization Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
This is a collaborative effort to synchronize the traffic signals along the identified corridor between the cities of Huntington Beach, Westminster, Fountain Valley and Santa Ana with OCTA taking the lead agency role.

Limits
Edinger and Bolsa Chica to Edinger and Auto Mall
Project Notes
Budgets shown represents City's MATCH funding commitment for this competitive grant project.

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $65,000 $0 $65,000 $66,950 Totals: $0 $0 $65,000 $0 $65,000 $66,950
Last Revised: 22-00 - In Progress Total Programmed: $65,000 TIP ID CP-11821 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: Euclid Signal Synchronization (City of La Habra lead agency) Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
This is a collaborative effort to synchronize the traffic signals along the identified corridor between the cities of La Habra, Fullerton, Anaheim, Garden Grove, Santa Ana, and Fountain Valley, with La Habra taking the lead agency role.

Limits
Euclid Street from I-405 SB Ramps to La Habra Boulevard Project Notes
Budgets shown represent City's MATCH funding commitment for this competitive grant project.

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $110,000 $0 $110,000 $113,300 Totals: $0 $0 $110,000 $0 $110,000 $113,300
Last Revised: 22-00 - In Progress Total Programmed: $110,000 TIP ID CP-11452 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: TI268 Euclid/Condor & Talbert/Bushard Sig MODIFICATIONS Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Replace and upgrade traffic signals and equipment This project will improve existing traffic signal conditions at Euclid/Condor and Talbert/Bushard.

Limits
Euclid/Condor and Talbert/Bushard
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $100,000 $0 $100,000 $103,000 Totals: $0 $0 $100,000 $0 $100,000 $103,000
Last Revised: 22-00 - In Progress Total Programmed: $100,000 TIP ID CP-11820 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: Harbor Signal Synchronization (OCTA Lead) Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
This is a collaborative effort to synchronize the traffic signals along the identified corridor between the cities of Fullerton, Anaheim, Garden Grove, Santa Ana, and Fountain Valley, with OCTA taking the lead agency role.

Limits
Harbor Boulevard from MacArthur/Hyland to Harbor/Commonwealth Project Notes
OCTA Lead Harbor Blvd Connected Bus Project. Budgets shown represents City's MATCH funding commitment for this competitive grant project.

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $85,000 $0 $85,000 $87,550 Totals: $0 $0 $85,000 $0 $85,000 $87,550
Last Revised: 22-00 - In Progress Total Programmed: $85,000

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5/26/22, 7:56 AM https://ocfundtracker.octa.net/CIP/report_project_listing https://ocfundtracker.octa.net/CIP/report_project_listing 4/6 TIP ID CP-11742 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: TI277 Heil - Euclid to Harbor and Ward from Edinger to North City Limits Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance - Rehabilitation of roadway This project will improve the arterial by resurfacing the street with asphalt concrete from curb to curb. This project will also replace curb & gutter, bus pads, pedestrian ramps and sidewalk panels that are damaged or are not ADA compliant. This pro Limits
Heil - Euclid to Harbor and Ward from Edinger to North City Limits Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $869,579 $0 $869,579 $895,666 2023 Local Streets and Roads apportionments $0 $0 $630,421 $0 $630,421 $649,334 Totals: $0 $0 $1,500,000 $0 $1,500,000 $1,545,000
Last Revised: 22-00 - In Progress Total Programmed: $1,500,000 TIP ID CP-11818 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: Magnolia - Edinger to Heil (Westminster Lead) Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance - Rehabilitation of roadway This project is a collaborative effort between the City of Fountain Valley and Westminster, where the City of Westminster is taking the lead role. This project will improve the arterial by resurfacing the street with asphalt concrete from curb to Limits
Magnolia Street from Edinger Avenue to Heil Avenue
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $200,000 $0 $200,000 $206,000 Totals: $0 $0 $200,000 $0 $200,000 $206,000
Last Revised: 22-00 - In Progress Total Programmed: $200,000 TIP ID CP-10035 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: 16-OCTA-TSP-3795 Project Title
Additional Project IDs: TI156 Magnolia TSSP
Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
This is a collaborative effort to synchronize the traffic signals along the identified corridor between the cities of Fullerton, Anaheim, Stanton, Garden Grove, Westminster, Fountain Valley and Huntington Beach with OCTA taking the lead agency role.

Limits
Magnolia from Banning Ave to W Commonwealth Ave
Project Notes
Budgets shown represents City's MATCH funding commitment for this competitive grant project.

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $50,000 $0 $50,000 $51,500 Totals: $0 $0 $50,000 $0 $50,000 $51,500
Last Revised: 22-00 - In Progress Total Programmed: $50,000 TIP ID CP-11817 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: Newland - Slater to Talbert (Huntington Beach Lead) Type of Work: Road Maintenance Project Description
Type of Work Description: Road Maintenance - Rehabilitation of roadway This project is a collaborative effort between the City of Fountain Valley and Huntington Beach, where the City of Huntington Beach is taking the lead role.

This project will improve the arterial by resurfacing the street with asphalt concrete fro Limits
Newland Street from Slater Avenue to Talbert Avenue
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $300,000 $0 $300,000 $309,000 Totals: $0 $0 $300,000 $0 $300,000 $309,000
Last Revised: 22-00 - In Progress Total Programmed: $300,000

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5/26/22, 7:56 AM https://ocfundtracker.octa.net/CIP/report_project_listing https://ocfundtracker.octa.net/CIP/report_project_listing 5/6 TIP ID CP-11744 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: TI288 Protected Permissive Traffic (PPLT) Signal Improvements at Eight (8) Traffic Signals Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Replace and upgrade traffic signals and equipment
This project will provide for the design and preparation of the plans, specifications, and construction engineering support for eight (8) of the city's existing protected permissive traffic signals
Limits
Edinger Ave at Ward St, Brookhurst St at Heil Ave, Harbor Blvd at Lilac Ave, Magnolia St at Slater Ave, Euclid St at Slater Ave, Warner Ave at Los Jardines West, Ellis Ave at Bushard St, Ellis at Ward
Project Notes
Other - Federal Funds

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $247,000 $0 $247,000 $254,410 2023 Agency Contribution $0 $0 $390,000 $0 $390,000 $401,700 2023 Other $0 $0 $169,000 $0 $169,000 $174,070
2023 Highways Safety Improvement Program $0 $0 $1,670,000 $0 $1,670,000 $1,720,100 Totals: $0 $0 $2,476,000 $0 $2,476,000 $2,550,280
Last Revised: 22-00 - In Progress Total Programmed: $2,476,000 TIP ID CP-11453 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: 20-IRVN-TSP-3974 Project Title
Additional Project IDs: TI289 Slater Street TSSP
Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
This is a collaborative effort to synchronize the traffic signals along the identified corridor between the cities of Irvine, Santa Ana, and Fountain Valley and City of Irvine taking the lead agency role.

Limits
Slater and Magnolia to Barranca and Aston/Flight
Project Notes
Budgets shown represents City's MATCH funding commitment for this competitive grant project.

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $150,000 $0 $150,000 $154,500 Totals: $0 $0 $150,000 $0 $150,000 $154,500
Last Revised: 22-00 - In Progress Total Programmed: $150,000 TIP ID CP-11456 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: 19-IRVN-TSP-3937 Project Title
Additional Project IDs: TI285 Talbert Ave TSSP
Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
This is a collaborative effort to synchronize the traffic signals along the identified corridor between the cities of Huntington Beach, Fountain Valley and Santa Ana with OCTA taking the lead agency role.

Limits
Talbert and Walmart to MacArthur SR-55 Off-Ramp
Project Notes
OCTA Lead Talbert RTSSP/Macarthur. Budgets shown represents City's MATCH funding commitment for this competitive grant project.

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5/26/22, 7:56 AM https://ocfundtracker.octa.net/CIP/report_project_listing https://ocfundtracker.octa.net/CIP/report_project_listing 6/6 TIP ID CP-10039 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: TI266 Traffic Signal System Equipment Improvements Citywide Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Install new traffic signals and equipment This project will provide, install, and replace aging traffic signal system equipment including controllers, switches, CCTV, etc. ... citywide.

Limits
Citywide
Project Notes

FISCAL YEAR FUND TYPE ENG ROW CON/IMP O&M TOTAL TOTAL ESCALATED 2023 Measure M2 Local Fairshare $0 $0 $500,000 $0 $500,000 $515,000 Totals: $0 $0 $500,000 $0 $500,000 $515,000
Last Revised: 22-00 - In Progress Total Programmed: $500,000 TIP ID CP-11455 IMPLEMENTING AGENCY Fountain Valley, City of Local Project Number: Project Title
Additional Project IDs: TI286 Warner Ave TSSP
Type of Work: Traffic Signals Project Description
Type of Work Description: Traffic Signals - Interconnect traffic signals to improve coordination and communications
This is a collaborative effort to synchronize the traffic signals along the identified corridor between the cities of Huntington Beach, Fountain Valley and Santa Ana with OCTA taking the lead agency role.

Limits
Warner Avenue and PCH to Warner and Pullman Street
Project Notes
Budgets shown represents City's MATCH funding commitment for this competitive grant project.

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for Water Loss Control Technical Assistance for $23,680
EXECUTIVE SUMMARY:

Senate Bill (SB) 1420 and SB 555 require water agencies to prepare and submit a validated water loss audit annually to the California Department of Water Resources (DWR). SB 555 will also require water agencies to comply with supplier-specific water loss targets beginning in 2028. The supplier-specific water loss targets will be calculated using the State Water Resources Control Board’s (SWRCB’s) economic model that incorporates both water loss and economic metrics.

The City of Fountain Valley does not have the technical expertise needed to prepare for and comply with these requirements. Therefore, the City entered into a cost-sharing agreement (CON-16-08) with the Municipal Water District of Orange County (MWDOC) for water loss control technical assistance in February 2016. The cost-sharing agreement allows the City to opt into or out of water loss control technical assistance services annually based on the City’s needs.

During FY 2022-23, the City will focus on meeting the reporting requirements of SB 1420 and SB 555 by compiling, documenting, validating, and submitting a CY2021 Water Audit to DWR by October 1, 2022, and looking at the possible benefits of calculating custom inputs for the SWRCB’s economic model that will determine the City of Fountain Valley’s water loss target. City staff has identified the tasks needed to achieve these goals at a total cost of $23,680, which will be fully funded by water conservation funds.

Staff recommends that the City Council approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance for $23,680.

DISCUSSION:

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City Council Request
FY 22-23 – Water Loss Control Technical Assistance
June 7, 2022

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During the development of the 2015 Urban Water Management Plan (UWMP), there was an addition to the Urban Water Management Planning Act. The Senate Bill (SB) 1420, adopted September 19, 2014, requires water agencies to audit their distribution system water loss annually and to report the information in their Urban Water Management Plans, which are updated every 5 years. The bill also requires water agencies to report the information to the California Department of Water Resources (DWR) annually on a worksheet approved by the department and based on the water system balance methodology developed by the American Water Works Association (AWWA). SB 555, which was adopted on October 9, 2015, established the additional requirement that the annual water loss audit submitted to DWR be validated by a third party, beginning October 2017.

The AWWA water audit methodology provides tested, consistent definitions for the major forms of water consumption and water loss encountered in drinking water utilities. It also features a set of rational performance indicators that evaluate utilities on system-specific attributes, such as the average pressure in the distribution system and total length of water mains that are used to calculate unavoidable system loss (i.e. pipe/joint leakage or low flow meter losses). The performance indicators allow water utilities to make a meaningful assessment of water loss, benchmark themselves with other water utilities, and set performance targets.

In addition to requiring annual validated water loss reporting, SB 555 will require water agencies to comply with supplier-specific water loss targets beginning in 2028. The supplier-specific water loss targets will be calculated using the State Water Resources Control Board’s (SWRCB’s) economic model that incorporates both water loss and economic metrics. Many of the economic model’s inputs can be customized by suppliers, if supporting documentation is submitted, to calculate a more realistic target.

To assist Municipal Water District of Orange County (MWDOC) member agencies comply with these requirements, a cost-sharing agreement (Agreement) was offered to streamline the process and lower the individual compliance cost for each participating agency. The Agreement offered access to low-cost training, technical assistance in the field of water loss control, an introduction to the AWWA water audit methodology, water balance software, and assistance in the process of data collection, analyses, verification, and validation for water loss audits. The Agreement allowed participating agencies to select or decline tasks offered by the Agreement annually at their discretion based on their needs.

On September 4, 2015, MWDOC released a Request for Proposal (RFP) to thirteen (13) consultants with expertise in water loss control. After carefully reviewing the four proposals submitted, MWDOC entered into a professional services agreement with Water Systems Optimization, Inc. (WSO) to provide water loss control technical assistance to member agencies.

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City Council Request
FY 22-23 – Water Loss Control Technical Assistance
June 7, 2022

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In February 2016, the City of Fountain Valley, and several other participating agencies, entered into a cost-sharing agreement (CON-16-08) with MWDOC. Each year, the City selects the water loss control technical assistance tasks that meet the City’s needs for the coming fiscal year.

When MWDOC’s original professional services agreement with WSO reached the end of its 5-year term, MWDOC issued a new RFP on October 5, 2020, that defined the scope of water loss control technical assistance services desired over the next five years. The RFP was released to 12 consultants with known expertise in distribution system water loss control. Three proposals were received on October 23, 2020, and found to be responsive. A Proposal Evaluation Committee comprised of two MWDOC staff members and four retail agency staff members, reviewed the proposals and concluded that Water Systems Optimization, Inc. (WSO) met the selection criteria most comprehensively. WSO had the most relevant experience, a very capable consultant team, competitive pricing, and was the only consultant to propose value-added tasks beyond those defined in the RFP. The MWDOC Board approved the professional services agreement with WSO, which has a term of up to 5 years, on December 14, 2020.

WSO was recently acquired by E Source, a utility research, data science, and consulting firm. The team members and technical assistance provided will remain the same.

The MWDOC Water Loss Control Technical Assistance program is now entering its seventh year. Each year MWDOC works with agencies to determine what technical assistance is needed to comply with current and future State requirements. Based on the needs identified, the following services are being offered this year:

CY 2022 - Water Loss Control Technical Assistance Tasks  Task 1: Project Administration & Progress Reporting (REQUIRED)  Task 2: Water Audit Compilation
 Task 3: Source or Production Meter Volumetric Accuracy Testing  Task 4: Billing Data Chain Assessment
 Task 5: Component Analysis
o Task 5a – Component Analysis of Real Losses – Gap Analysis o Task 5b – Component Analysis of Real Losses
o Task 5c – Component Analysis of Apparent Losses
 Task 6: SWRCB Water Loss Standard Assistance
o Task 6a – Information Order Response Assistance
o Task 6b – Off-Ramp Assistance
o Task 6c – Economic Model Custom Input Evaluation
 Task 7: Water Loss Team Development
o Task 7a – Team Development Process Maps
o Task 7b – Educational Workshops

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City Council Request
FY 22-23 – Water Loss Control Technical Assistance
June 7, 2022

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 Task 8: Leak Simulation Model
 Task 9: Water Loss Pilot Plan & Evaluation
 Task 10: Water Loss Compliance Plan Development
o Task 10a – Water Loss Compliance Plan Development
o Task 10b – Water Loss Compliance Plan Updated
Some of the tasks previously offered through the Water Loss Control Technical Assistance agreement, such as water audit validation, leak detection, and meter accuracy testing, are now available through MWDOC’s Water Loss Control Shared Services agreement.

This year the City will focus on meeting the requirements of SB 1420 and SB 555 by compiling, documenting, validating, and submitting a CY 2021 Water Audit to DWR by October 1, 2022, and looking at the possible benefits of calculating custom inputs for the SWRCB’s economic model that will determine the City’s water loss target. City staff has identified the tasks needed to achieve these goals and is recommending that the City Council approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance for $23,680.

FINANCIAL ANALYSIS:

The table below shows the task by task cost for the technical assistance to be provided by E Source to the City of Fountain Valley through the Cost Sharing Agreement with MWDOC for water loss control technical assistance. The cost of these services will be fully funded by water conservation funds.

Cost for FY 22-23 – Water Loss Control Technical Assistance Task 1 – Project Administration/Progress Reporting (REQUIRED) $1,700 Task 2 – Water Audit Compilation $8,420
Task 6c –SWRCB Water Loss Standard Assistance – Economic Model Custom Input Evaluation $13,560
Total $23,680
ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for Water Loss Control Technical Assistance.

ALTERNATIVES:

Alternative No.1: Approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange

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City Council Request
FY 22-23 – Water Loss Control Technical Assistance
June 7, 2022

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County for water loss control technical assistance for $23,680.

This is the recommended action as it ensures the City’s compliance with the annual validated water loss control audit requirements of SB 1420 and SB 555 and helps the City
prepare to comply with the water loss target to be established by the SWRCB.

Alternative No. 2: Do not approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County for water loss control technical assistance.

This is not the recommended action as the City staff lacks the technical expertise required to comply with the reporting requirements of SB 1420 and SB 555, and the upcoming
water loss target.

Alternative No. 3: Do not approve Exhibit A – CY 2022 of the Cost Sharing Agreement (CON-16-08) with the Municipal Water District of Orange County and direct staff to procure services from another consultant. This is not recommended as MWDOC has conducted a competitive RFP process with a selection
committee and selected a qualified consultant for these services. This process not only meets City purchasing policies and procedures but was done by MWDOC to assist its
member agencies with this cooperative process that resulted in a highly qualified consultant with a cost that benefits all agencies due to economy of scale.

RECOMMENDATION:

Prepared by: Christine Smith, Management Analyst
Reviewed by: Mark Sprague, Field Services Manager
Approved by: Hye Jin Lee, Director of Public Works
Fiscal Review by: Ernestine Jones, Interim Finance Director Approved by: Raul Godinez II, Interim City Manager
Attachment: Exhibit A – CY 2022 of CON-16-08

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4 Exhibit A
CY 2022 – Water Loss Control Technical Assistance Tasks (Updated) TASKS 1 PROJECT ADMINISTRATION
Project administration:

Partner with E Source and the larger MWDOC group (Required) ● Communication
● Systems of data collection and management
● Travel expenses
● Invoicing
$1,700 Project administration
TASK 2 WATER AUDIT COMPILATION
Task 2: Water audit compilation:

Estimate apparent and real water loss
Assess data availability and quality
● Water audit data collection and review
● Raw billing data validation (study of completeness and consistency, pro‐rating to reduce lag‐time effects) ● Water audit compilation
● Water audit documentation in preparation for level 1 validation $8,420 Task 2: Water audit compilation
TASK 3 SOURCE OR PRODUCTION METER VOLUMETRIC ACCURACY TESTING Task 3: Source/Production meter volumetric accuracy testing:

Design and conduct a volumetric source meter accuracy test Establish a field‐validated water‐supplied baseline for the water audit Document test procedures for future meter accuracy investigation ● Site visit and test design
● Volumetric accuracy test with comparative meter or reservoir reference volume ● Data chain assessment (“loop audit” or SCADA calibration), if relevant ● Test results analysis and documentation
● Test procedure documentation
$7,060 Task 3: Volumetric production meter accuracy test, per meter.

TASK 4 BILLING DATA CHAIN ASSESSMENT
Task 4: Billing data chain assessment:

Assess billing data for potential errors and/or inconsistencies ● Mapping of meter read collection and billing process
● Comparison of raw data across billing data management platforms (read collection system, billing data system, and reporting system)
● Identification of data transmission errors ‐ misreads, zero reads, dropped reads, duplicated reads, etc. $12,240 Task 4: Billing data chain assessment.

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5 TASK 5 COMPONENT ANALYSIS
Task 5a: Component analysis of real losses – Gap Analysis:

Assess repair data in preparation for a real loss component analysis. ● Collection of leakage repair documentation
● Evaluation and summarization of repair data
● Identification of gaps in repair documentation
● Memo documenting recommendations for repair data improvements and documentation Task 5b: Component analysis of real losses:

Establish the distribution system’s unique leakage profile Determine cost‐effective leakage management strategies for the short‐, medium‐, and long‐term ● Collection of leakage repair documentation
● Evaluation of repair process documentation
● Determination of unique leakage profile (background, unreported, and reported leakage) ● Analysis of cost‐effective intervention against leakage ● Leak management program design
Task 5c: Component analysis of apparent losses:

Assess customer meter inaccuracy
Value apparent losses
Design an apparent loss management strategy
● Random and representative small customer meter sample design, if relevant ● Prioritization of large customer meters for testing
● Small and large customer meter testing, as appropriate ● Test results analysis
● Calculation and valuation of apparent losses due to customer meter inaccuracy ● Recommendations for further study and customer meter management $4,140 Task 5a: Component analysis of real losses – Gap Analysis $12,120 Task 5b: Component analysis of real losses
$10,440 Task 5c: Component analysis of apparent losses (meter testing budget through Shared Service Contract is also required if testing cannot be conducted in‐house)

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6 TASK 6 SWRCB WATER LOSS STANDARD ASSISTANCE
Task 6a: Information Order Response Assistance:

Document response to Information Orders from the SWRCB related to compliance with the Water Loss Standard. ● Compilation of results and findings from related activities to date ● Memo documenting response to Information Order
Task 6b: Off‐Ramp Assistance:

Document compliance with Off‐Ramp criteria
● Collection of relevant data and supporting documents
● Document activities and/or data proving compliance with each Off‐Ramp criterion ● Compilation of Off‐Ramp request
Task 6c: Economic Model Custom Input Evaluation
Calculate custom inputs and compile supporting documents for the SWRCB’s economic model. ● Request and compilation of relevant data (e.g. leak repair documentation, leak detection results, financial data, infrastructure data, etc.)
● Review of data collected to identify what custom inputs may be calculated ● Calculation of customized value for inputs where the minimum data threshold is met ● Compilation of supporting documents for input adjustment application ● Assistance with creating memo to the SWRCB, requesting custom input adjustment $1,090 Task 6a: Information Order Response Assistance
$4,560 Task 6b: Off‐Ramp Assistance
$ Varies,
Discuss with
E Source
Task 6c: Economic Model Custom Input Evaluation

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7 TASK 7 WATER LOSS TEAM DEVELOPMENT
Task 7a: Team Development Process Maps:

Establish a water loss team roster
Document processes related to water audit data collection ● Interviews with staff
● Identification of key water loss team members
● Document and map water loss data collection processes Task 7b: Educational Workshops
In‐person educational workshop with agency staff to provide water loss background and connect day‐to‐day tasks with water loss calculation.

Workshops will offer an opportunity to elicit feedback from staff and prepare them for upcoming projects and data requests.
● Development of slides and materials for meeting
● Travel to agency
● Facilitation of educational workshop
$5,660 Task 7a: Team Development Process Maps
$4,340 Task 7b: Educational Workshops
TASK 8 LEAK SIMULATION MODEL
Task 8: Leak Simulation Model:

Quantify the impacts of leak detection technique accuracy on achievable overall system loss rates and projected workload
Evaluate the cost‐benefit of leakage control strategies under varying assumptions of fundamental leakage characteristics.
● Collection of leakage repair documentation
● Assessment of unique leakage profile
● Consider sub‐system level infrastructure characteristics and their impact on loss rates, including pipe‐segment level data for likelihood and consequence of failure, if available. ● Provide an intuitive visualization of the water distribution system that shows how leakage control strategies are implemented and their resulting impact on individual leaks and system‐level leakage rates. ● Estimate future system‐wide loss rates under varying assumptions for leakage characteristics and loss recovery efforts that can be compared with state regulatory targets or other performance goals. ● Project the workload required to implement and maintain various leakage management strategies, including manual acoustic leak detection, automated acoustic noise loggers, satellite leak detection. $ Varies,
Discuss with
E Source
Task 8: Leak Simulation Model

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8 TASK 9 WATER LOSS PILOT PROGRAM MANAGEMENT AND EVALUATION Task 9: Water Loss Pilot Program Management and Evaluation:

Develop a pilot plan to assess the effectiveness of leakage management technologies/strategies ● Collection of previous water audits and repair data
● Development of pilot plan detailing the leakage management techniques to be piloted, scale of implementation, and level of effort required from participating agency staff ● Work with participating agency to vet and manage technology providers ● Tracking and collection of data during pilot implementation ● Recommend metrics to evaluate the success of the pilot program and identify data collection necessary to calculate metrics
● Report on the performance of each pilot technology and recommend next steps necessary for full system implementation
$ Varies,
Discuss with
E Source
Task 9: Water Loss Pilot Program Management and Evaluation TASK 10 WATER LOSS STANDARD COMPLIANCE PLAN
Task 10: Water Loss Standard Compliance Plan:

Develop a Water Loss Compliance Plan to assist with meeting the Water Loss Standard ● Review the participating agency’s Water Loss Standard modeled by the SWRCB ● Evaluate data uncertainty and recommendations for data improvement ● If available, consider results of leak simulation model, real loss component analysis, and/or pilot results ● Develop a timeline, cost estimate, and key milestones associated with the Water Loss Compliance Plan, based on existing data sources
$ Varies,
Discuss with
E Source
Task 10: Water Loss Standard Compliance Plan

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9 Exhibit A
CY 2022 – Water Loss Control Technical Assistance Tasks CY 2022
Participating Agency:______________________________
Cost Sheet for Selected Water Loss Control Services
E Source
Tasks: (Tasks 1 – 10 are performed by E Source) Task Cost Selected Water
Loss Control
Services
Task 1 – Project Administration and Progress Reporting (Required) $1,700 $1,700 Task 2 – Water Audit Compilation $8,420 $
Task 3 – Source or Production Meter Volumetric Accuracy Testing $7,060 $ Task 4 – Billing Data Chain Assessment $12,240 $
Task 5 – Component Analysis
Task 5a: Component Analysis of Real Losses – Gap Analysis Task 5b: Component Analysis of Real Losses
Task 5c: Component Analysis of Apparent Losses
$4,140
$12,120
$10,440
$
$
$
Task 6 – SWRCB Water Loss Standard Assistance
Task 6a: Information Order Response Assistance
Task 6b: Off-Ramp Assistance
Task 6c: Economic Model Custom Input Evaluation
$1,090
$4,560
Varies (discuss
with E Source
$
$
$
Task 7 – Water Loss Team Development
Task 7a: Team Development Process Maps
Task 7b: Educational Workshops
$5,660
$4,340
$
$
Task 8 – Leak Simulation Model Varies (discuss
with E Source)
$
Task 9 – Water Loss Pilot Plan and Evaluation Varies (discuss with E Source)
$
Task 10 – Water Loss Compliance Plan Development
Task 10a: Water Loss Compliance Plan Development
Task 10b: Water Loss Compliance Plan Updated
Varies (discuss
with E Source) $
$
Rollover Funds
to be Applied:
$
New Amount to be Invoiced
(Task Totals Less Rollover Funds) Total: $
This Cost Sheet may be updated upon mutual consent of the parties as indicated in writing.

By: By:

Date: Date:

Robert J. Hunter, General Manager Title:

Municipal Water District of Orange County Agency:

City of Fountain Valley
8,420
13,560
Patrick Harper, Mayor
City of Fountain Valley
23,680
Approved as to Form

HARPER & BURNS LLP
________________________
Attorney for the City

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Approve the Water Loss Control Shared Services Election Form for FY 22- 23 with the Municipal Water District of Orange County
EXECUTIVE SUMMARY:

The Municipal Water District of Orange County (MWDOC) and its member agencies, including the City of Fountain Valley, are preparing for the next phase of water conservation legislation. In addition to requiring annual validated water loss reporting, Senate Bill (SB) 555 will require water agencies to comply with water loss targets to be established in 2022 by the State Water Resources Control Board. SB 606 and Assembly Bill (AB) 1668 will also require agencies to operate within an annual water supply allocation budget that includes the distribution system water loss. In order to comply with these new requirements, water agencies will need to identify and take steps to reduce sources of water loss within their systems.

Based on the common needs of member agencies, the MWDOC Board approved a business plan to provide Water Loss Control Shared Services to assist member agencies in complying with current and future legislation. This service from MWDOC minimizes time-consuming administration and provides economy of scale cost-benefit to all member agencies.

In September 2019, the City of Fountain Valley entered into the Water Loss Control Shared Services Agreement (Agreement) with MWDOC, in which the City may opt-in and out of shared services annually on an as-needed basis. Heading into year four of the Agreement, staff has identified Water Audit Validation and Meter Accuracy Testing as needed services in FY 22-23.

Staff recommends that the City Council approve the Water Loss Control Shared Services Election Form for FY 22-23 with the Municipal Water District of Orange County.

DISCUSSION:

During the California Drought of 2012-2016, the Governor issued Executive Order B-37- 16 mandating water conservation throughout California. In response to implementing the

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City Council Request
FY 22-23 – Water Loss Control Shared Services
June 7, 2022

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Executive Order, the California Department of Water Resources and State Water Resources Control Board drafted the framework for “Making Water Conservation a Way of Life.” This is more than a marketing slogan; it establishes a new foundation for California’s long-term commitment to water conservation, water use efficiency and drought planning in order to sustain the state’s water supply. This commitment is backed by legislation designed to improve and measure water conservation and drought planning throughout the state to ensure that we have enough water now and in the future.

All water agencies are required to prepare the Urban Water Management Plan (UWMP) every 5 years per the Urban Water Management Planning Act of 1983. Over the years, additional requirements have been incorporated into the UWMP. On September 19, 2014, Senate Bill (SB) 1420 was adopted thus requiring water agencies to audit their distribution system water loss annually and to report the information in their Urban Water Management Plans. The bill also requires water agencies to report the information to the Department of Water Resources (DWR) annually. SB 555, which was adopted on October 9, 2015, established the additional requirement that the annual water loss audit submitted to DWR be validated by a third party, beginning October 2017.

To assist Municipal Water District of Orange County (MWDOC) member agencies comply with these new reporting requirements, MWDOC offered a cost sharing agreement for Water Loss Control Technical Assistance to streamline the process and lower the individual compliance cost for each participating agency. This agreement offered access to training and technical assistance in the field of water loss control and American Water Works Association (AWWA) water audit methodology, as well as assistance in the process of data collection, analyses, verification and validation for water loss audits.

The City of Fountain Valley entered into this cost sharing agreement for Water Loss Control Technical Assistance with MWDOC in February 2016. Since then, the City has selected services annually based on the City’s needs and resources. Participating in this agreement has enabled the City to comply with the requirements of SB 1420 and SB 555, successfully complete six water audits, and gain a better understanding of water loss in the system.

Now MWDOC and its member agencies, including the City of Fountain Valley, are preparing for the next phase of water conservation legislation. In addition to requiring annual validated water loss reporting, SB 555 will require water agencies to comply with supplier specific water loss targets to be established by the State Water Resources Control Board. SB 606 and Assembly Bill (AB) 1668, which were adopted on May 31, 2018, will also require agencies to operate within an annual water supply allocation budget that includes distribution water loss. In order to comply with these new requirements, water agencies will need to identify and take steps to reduce sources of water loss to ensure that they are making every drop count.

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City Council Request
FY 22-23 – Water Loss Control Shared Services
June 7, 2022

Page 3 ends

Based on the common needs of member agencies, the MWDOC Board approved a business plan to provide Water Loss Control Shared Services to assist member agencies in complying with current and future legislation. MWDOC’s shared services program provides retail agencies flexible and cost effective access to water loss control technologies and expertise to improve water loss within their systems. The Water Loss Control Shared Services Agreement has an initial term of five years, and automatically renews for another five years unless either of the parties terminates the agreement.

Participating agencies opt in and out of shared services annually on an as needed basis.

Benefits of participating in the Shared Services program include:
 Competitive or lower cost services than can be provided by the private sector  Quality services on par with or better than those provided by the private sector  Economies of scale that can be realized by providing services at a regional level  Continued collaboration and shared learning among all agencies  Phased implementation of new shared services over time based on need In September 2019, the City of Fountain Valley entered into the Water Loss Control Shared Services Agreement (Agreement) with MWDOC and elected which services the City wanted to participate in during Year 1. Since then, the City has elected which services the City wants to participate in on an annual basis.

The MWDOC Water Loss Control Shared Services program is now entering its fourth year and is offering the following services to participating agencies in FY 22-23:
 Task 1 – Water Audit Validation
 Task 2 – Meter Accuracy Testing
 Task 3a – Distribution System Leak Detection
 Task 3b – Suspected Leak Survey
 Task 4 – Distribution System Pressure Survey
 Task 5 – Distribution System Flushing (NO-DES)
Staff recommends that the City participate in MWDOC’s Water Loss Control Shared Services program Task 1 – Water Audit Validation and Task 2 – Meter Accuracy Testing for FY 22-23.

Water audit validation is required by all agencies and will be provided at no cost.

Water meter accuracy testing is an important tool in water loss control. It determines and monitors meter accuracy over time, identifies inaccuracies that may result in volumetric and financial loss, and provides insights into the City’s apparent water loss. With this in mind, staff worked with Water Systems Optimization, Inc. (WSO), through MWDOCs Water Loss Control Technical Assistance program, to design both a small meter testing program and a large meter testing program. Since the City’s AMI water meters are

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City Council Request
FY 22-23 – Water Loss Control Shared Services
June 7, 2022

Page 4 ends

relatively new, the City will be testing 30 random small meters a year to characterize the typical performance of small meters throughout the City. In contrast, the large meter testing program will focus on the individual performance of high volume meters ranging in size from 2 inches to 10 inches. The City will test over 90 large meters a year based on a 6-year schedule that will test approximately 550 meters at least once. High volume/high revenue meters will be tested more frequently based on their calculated optimum test and repair frequency.

The meter testing results will be utilized to perform a component analysis of apparent losses to identify areas of apparent water loss that the City may want to address.

FINANCIAL ANALYSIS:

The table below shows the cost for the shared services to be provided by MWDOC to the City of Fountain Valley in FY 22-23. The City has $6,719 in rollover funds on account with MWDOC. These water conservation funds were allocated previously for meter testing services through Year II and Year IV of the cost sharing agreement for water loss control technical assistance with MWDOC that were deferred to a future date. The meter testing services are now provided through the Water Loss Control Shared Services Agreement.

Cost for FY 22-23 – Water Loss Control Shared Services
Task 1 – Water Audit Validation (provided at no cost) $0 Task 2 – Meter Accuracy Testing $15,096
Total $15,096
Less Rollover Funds for Meter Accuracy Testing -$6,719
FY 22-23 Water Fund Cost $8,377
The proposed FY 22-23 budget allocates $30,000 for meter testing and repair. Therefore, there are sufficient funds for meter testing.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the Water Loss Control Shared Services Election Form for FY 22-23.

ALTERNATIVES:

Alternative No.1: Approve the Water Loss Control Shared Services Election Form for FY 22-23 with the Municipal Water District of Orange County. This is the recommended action as it will allow the City to submit a validated water loss audit in compliance with SB 555, as well as gain quantitative data regarding meter accuracy to help the City better understand the impact of

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City Council Request
FY 22-23 – Water Loss Control Shared Services
June 7, 2022

Page 5 ends

apparent losses on the water system and comply with future water conservation legislation and targets.

Alternative No. 2: Do not approve the Water Loss Control Shared Services Election Form for FY 22-23 with the Municipal Water District of Orange County. This is not the recommended action as it will make it necessary for the City to procure the needed services independently, without the benefits provided by MWDOC’s shared services program and their expertise in
overseeing these efforts on behalf of their member agencies.

RECOMMENDATION:

Staff recommends that the City Council approve Alternative No. 1, which is to approve the Water Loss Control Shared Services Election Form for FY 22-23 with the Municipal Water District of Orange County.

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EXHIBIT A
Water Loss Control Shared Services
Election Form (Updated)
Fiscal Year 2022-23
Year 4
Water Loss Control Shared Services
Agency:

Contact Person:

Contact E-mail:

Contact Phone:

Task 1: Water Audit Validation
Water audit validation will be conducted at Level 1, according to the methodology established in Water Research Foundation project 4369: Level 1 Water Audit Validation Guidance Manual.

Water audit validation aims to identify and appropriately correct for inaccuracies in water audit data and application of methodology. Furthermore, validation also evaluates and communicates the uncertainty inherent in water audit data. To accomplish these goals, MWDOC’s validation Shared Service will follow the steps published in the Water Research Foundation Level 1 Water Audit Validation Guidance Manual. The process will include:
 Review the water audit and supporting documentation.
 Review performance indicators for evidence of inaccuracy.  Review audit inputs and data validity grades and confirm correct application of methodology in a Level 1 validation interview. Adjust inputs and data validity grades, if necessary.
 Review performance indicators again for evidence of persisting inaccuracy.  Document results.

MWDOC’s validation Shared Service will also employ the California-specific additional guidance developed by the California Water Loss Technical Assistance Program and subsequently taught in the Water Audit Validator (WAV) certificate course.

Validation results will be documented in a format acceptable to the Department of Water Resources. Templates for this format have been published by the CaliforniaNevada section of the American Water Works Association on their WAV Certification City of Fountain Valley
Christine Smith, Management Analyst
[email protected]
714-593-4603

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webpage.

Deliverables include:
 Level 1 Validation Summary Notes
 Certified Validation Report (signed by validator)
___ Yes
___ No
$
Water Balance Validation is a Core service provided by MWDOC to its member agencies at no cost. MWDOC member agencies are requested to check the box to the left indicating their choice to have MWDOC validate their annual water balance.

The Cities of Anaheim, Fullerton, and Santa Ana may access MWDOC’s Water Audit Validation service for a fee of $990 per validation.

Task 2: Meter Accuracy Testing
Customer meter accuracy testing enables an agency to measure a retail meter’s performance and, consequently, the throughput that the meter fails to register. By measuring a meter’s inaccuracy, an agency can understand financial loss due to meter inaccuracy and can develop a plan to manage the meter performance within their system.

Customer meter tests will be conducted in accordance with the methodology set forth in American Water Works Association manual M6, Water Meters – Selection, Installation, Testing, and Maintenance. The stipulations in manual M6 include:
 Specific low, medium, and high flow rates for each meter type and size  Minimum test volume by flow rate and meter size
 Generally acceptable accuracy limits for new and repaired meters M6 also enumerates test procedures for laboratory tests and field tests that MWDOC staff and/or contractors will be required to follow.

Agencies can choose between two customer meter accuracy testing service providers: McCall’s Meters, Inc. or Westerly Meter Service Company. The Meter Accuracy Testing (MAT) Worksheet, Attachment 2 to this document, summarizes the fees for each meter accuracy testing service provider. Note that the fees are slightly different between providers. As a result, each service provider has its own MAT Worksheet. Agencies will need to:
 Select the meter accuracy testing company of their choice,  Identify the number and sizes of meters to be tested (green data entry cells), and
 Estimate the number of meetings (McCall’s) or hours and mileage (Westerly) for meetings with the selected company.

This worksheet should be used to calculate the total cost for meter accuracy testing services for your agency. The cost estimate calculated in the MAT Worksheet should be entered into the shaded cell immediately below. Water Systems Optimization, Inc. (WSO) is available to assist agencies in quantifying the number and sizes of meters X
0

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to be tested as part of Task 3: Component Analysis of Apparent Losses.

Small meter (5/8 – 2 inch) testing will require agencies to pull the meters from the field and deliver them to the selected meter testing company. Meter testing company locations are provided below. Large meters (3 inch and larger) will be tested in-situ.

McCall’s Meters, Inc. Westerly Meter Company
1498 Mesa View Street 403 East Carlin Street
Hemet, CA. 92543 Compton, CA. 90222
(951) 654-3799 (310) 637-9000
Deliverables include:
 Meter accuracy testing results
 Warehousing of test results data
$
$________
$
MWDOC Administrative Fee = $346
Input the total dollar amount calculated in the MAT Worksheet.

Task 2 Total
Task 3a: Distribution System Leak Detection
Leak detection will be conducted using a comprehensive acoustic survey, meaning that leak detection technicians will sound all accessible appurtenances regardless of spacing distances. The following protocols will be adopted for leak detection:
 Sounding points: Physical contact and sonic leak sound amplification will occur for each hydrant, and customer service connection. Valves may be used as contact points, if necessary.
 Sonic ground listening (hard cover): When normal contact points are not available or cannot be created within a reasonable distance, sonic ground listening devices will be used by making ground contact directly over the pipe at intervals no greater than six (6) feet when ground cover is pavement, concrete, or a similar hard surface. If excessive ambient noise precludes the effectiveness of the ground listening device in an area during daytime hours, then survey will be considered during nighttime hours. Such situations will be pre-approved with retail agency staff before any night surveying is undertaken.  Sonic ground listening (soft cover): When normal ground contact points are not available and ground cover is not a hard surface, probe rods will be used at 10-foot intervals. A sound amplifier will be used on probe rods  Verification: All indications of leaks found during initial survey will be verified a second time, after which the leak will be pinpointed with a computer-based leak sound correlator whenever possible. Pinpointing leak locations through interpretation of sound intensity, whether by ear, decibel metering, or comparable methods, will not be used when contact points are available for access with a computer-based leak sound correlator.
346
14,750
15,096

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MWDOC staff will perform distribution system leak detection at a cost of $314 per mile of distribution main surveyed. Metropolitan will contribute $170 per mile thereby reducing the cost to $144 per mile to member agencies. Deliverables include:
 Distribution System Leak Detection Plan
 Weekly progress reporting and leak verification
 Final Reporting
 Training for measuring leak rates in gallons per minute Please note that in order to be eligible to receive Metropolitan funding, participating agencies must provide leak repair results. All leaks must be investigated, repaired or slated for repair and their status reported to MWDOC within 60 days of the completion of the leak survey. If a participating agency does not report this information to MWDOC within 60 days, the participating agency will have to pay the full cost of the survey at $314 per mile.

Participating agencies must elect a minimum of 30 miles or the full system, whichever is less.
$ Task 3a total = ___ miles X $144
Task 3b: Suspected Leak Survey
MWDOC staff will perform a suspected leak survey at a cost of $419 per leak investigation. The methodology to detect suspected leaks will employ the same process described in Task 3a. Deliverables include:
 Suspected leak consultation
 Field leak investigation
 Written report and pinpointed leak location
Please note that pricing may vary if the suspected leak survey area extends beyond one city block. For assistance in determining suspected leak survey costs for your needs, please contact Rachel Davis at the number or e-mail address below.

Municipal Water District of Orange County
Rachel Davis
Water Loss Control Programs Supervisor
(714) 593-5308
[email protected]
Please see Attachment 1 for more details.
$ Task 3b Total = ____ number of suspected leaks X $419 0 0
0 0

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Task 4: Distribution System Pressure Survey
The methodology used for pressure surveying depends on the survey goal of: 1) Average zonal and system pressure survey, or 2) Pressure transient survey using high frequency logger. Methodology must be agreed upon with each agency before surveying begins. The methodology to be determined includes:
 Logger settings (e.g. sampling and recording frequencies)  Logger deployment locations
 Logger deployment durations
 Analysis of data after logger retrieval
1) Average Zonal and System Pressure Survey
Pressure loggers can be deployed to evaluate the range of pressures in a system or zone, which can then be used to estimate average system or zonal pressure.

Loggers should be placed strategically, capturing the highs and lows of each pressure zone in the system. The specific survey methodology must be customized to the specific infrastructure being studied.
2) Pressure Transient Survey
A pressure transient survey identifies instantaneous, damaging swings in pressure introduced by infrastructure malfunction, sudden and significant changes in demand, or rapid hydrant operation. Pressure transients move quickly and can only be identified with a high sampling frequency. At minimum, loggers should be deployed immediately upstream and downstream of pressure regulating infrastructure suspected of transient production.

The resulting data analysis will include:
 Transient identification using a relative or absolute amplitude threshold o Absolute: transient amplitude
o Relative: ratio of transient amplitude to average location pressure  Temporal transient alignment to study the direction and speed of transient propagation
MWDOC staff will perform a distribution system pressure survey at a cost of $3,959 per 8 logger survey.
$ Task 4 Total = ____ number of 8 logger surveys X $3,959.

Task 5: Distribution System Flushing (NO-DES)
Flushing with a Neutral Output Discharge Elimination System (NO-DES) unit will consist of the following steps:
 Deploy: Mobilize and set-up NO-DES truck at flushing location, between two fire hydrants.
 Connect: Connect a hose from the filtering system’s inlet point to one hydrant; 0 0

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then, connect a second hose from the filtering system’s outlet point to the other hydrant.
 Create a loop: Open both fire hydrants, allowing the hoses and filters to be filled. This will create a temporary above-ground loop in the water distribution system.
 Circulate: A large pump on the NO-DES unit circulates water through the loop at the desired flushing velocity, scouring the water main to remove debris.  Filter and purify: Contaminants and biofilms are removed by the NO-DES filters. If needed, a small amount of chlorine may be added to increase chlorine residual during the process.
 Shut down: When the entire section of water main in the targeted flush zone has been filtered and all turbidity meters are below 1 NTU, shut down the system, close hydrants, and remove hoses.

For more detailed information regarding NO-DES Standard Operating Procedures, follow this link: https://www.mwdoc.com/wp-content/uploads/2019/04/NO-DES-SOP2019.pdf NO-DES, Inc. will provide the flushing services on a contract basis. For assistance in determining flushing costs for your needs, please contact Rachel Davis at the number or e-mail address below.

Municipal Water District of Orange County
Rachel Davis
Water Loss Control Programs Supervisor
(714) 593-5308
[email protected]
Deliverables will include:
 Flush Plan and Schedule
 System Flushing
 Weekly water quality and progress reporting
$
$
$
MWDOC Administrative Fee = $1,386
Flushing Services (contact NO-DES for a customized quote) Total
0 0
0

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Fiscal Year 22-23
Year 4
Summary of Shared Services Elections:
(transfer total for each Shared Service above to this summary table) Task 1: Water Audit Validation
Task 2: Meter Accuracy Testing $
Task 3a: Distribution System Leak Detection $
Task 3b: Suspected Leak Survey $
Task 4: Distribution System Pressure Survey $
Task 5: Distribution System Flushing (NO-DES) $
Rollover Funds to be Applied: $
New Amount to be Invoiced Total:
(Task Totals Less Rollover Funds)
$
By: By:

Date: Date:

Robert J. Hunter, General Manager Title:

Municipal Water District of Orange County Agency:
___Yes X
___ No
$ ____ 0.00 (3Cities only)
0 0
0 0
6,719
Patrick Harper, Mayor
City of Fountain Valley
15,096
8,377
Approved as to Form

HARPER & BURNS LLP
________________________________
Attorney for the City

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Meter Accuracy Testing (MAT) Worksheet
Westerly Meter Service Company
Rate Quantity Total
Small Meter Testing
5/8 ‐ 1 in.  $30.00   $
1 1/2 in. and up  $70.00   $
3 in. Turbine N/A   $
Large Meter Testing
3 in and up. $200   $
Rates for Pickup or Delivery of
Meters No Charge (1)
Rates for attending meetings   $150/hr. + mileage $
Total: $
(1) No charge for orders transport of over 50 meters.  Transport of less than 50 is based on time and mileage Participating Agency: City of Fountain Valley
Contact Person: Joseph Macias
Phone: 714-593-4625
Email: [email protected]
30 900
55 3,850
50 10,000
14,750
0 0

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: First Amendment to Agreement with AdminSure the City’s SelfInsured Workers’ Compensation Program to extend the agreement for a one-year term through June 30, 2023, not to exceed $100,000.

EXECUTIVE SUMMARY:

The City has contracted with AdminSure, a Third Party Workers’ Compensation Administrator, to administer the City’s Workers’ Compensation program for employees.

AdminSure has performed well during the course of our agreement by providing a high level of customer service, competent claims processing, and timely claims closure. The current contract terms with Adminsure (CON 20-15) are from July 1, 2020 through June 30, 2022.

Staff recommends approval of first amendment to the agreement with AdminSure in the amount of $100,000, be renewed for a one-year term beginning July 1, 2022 through June 30, 2023 for the City’s self-insured Workers’ Compensation program.

DISCUSSION:

The City is required to provide a Workers’ Compensation program to City employees and volunteers who are injured on the job. Since the City is self-insured, we contract with a Third Party Administrator to handle the claim administration process and ensure that the City complies with the ever-changing Workers’ Compensation regulations. Third Party Administrators are required to have specialized skills and certifications to handle all Workers’ Compensation claims.

AdminSure was selected in a previous bid process based on their experience working with municipalities, their expertise working with sworn police and fire, and their knowledge of applicable laws and regulations. AdminSure has dedicated two claims adjustors that are assigned to the City. Our Claims Adjustors are the primary handler of any claims and work with the injured employee, medical providers and any other consultants necessary to provide the necessary treatment plan to the employee. They serve as advisors to City staff by making recommendations to assist in bringing claims to a resolution and taking care of future medical expenses awarded. As part of their services, AdminSure also

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City Council Request
First Amendment to the Agreement with AdminSure in an Amount Not to Exceed $100,000 for a one-year renewal to Administer the City’s Self-Insured Workers’ Compensation Program
June 7, 2022

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completes all of our regulatory reporting, including the monthly and annual OSHA reports for the City; and they complete the annual self-insured report due to the State of California.

Staff has experience knowing that AdminSure has provided a high level of customer service, handled claims efficiently and effectively and worked hard to address claims as quickly as possible. In addition, they continue to monitor our return to work program with the goal of returning the employee to work whenever possible, even if it is on a temporary light duty basis.

AdminSure has a proven record of accomplishment of administering claims for public employers, including this City, in an efficient and cost effective manner. Near the conclusion of the this agreement in 2023, staff will complete a request for proposals to ensure that the City is receiving the best services at a fair price and will bring back the results and recommendations for your consideration.

FINANCIAL ANALYSIS:

The City is currently paying AdminSure approximately $100,000 annually for the third party-administration fee. For the renewal, AdminSure is estimating the third-party administrator fees will remain the same:
 2022/2023: $100,000 annually.

Funds have been proposed in the upcoming 2022-2023 Fiscal Year Budget.

ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the attached amendment.

ALTERNATIVES:

Alternative No.1: Approval of a first amendment to the agreement with AdminSure in the amount not to exceed $100,000, for a one-year renewal beginning July 1, 2022 through June 30, 2023, for the City’s selfinsured Workers’ Compensation program.

Alternative No. 2: Do not approve the first amendment to the agreement with AdminSure in the amount not to exceed $100,000, for a one-year

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renewal beginning July 1, 2022 through June 30, 2023, for the City’s self-insured Workers’ Compensation program and provide direction to City staff.

RECOMMENDATION:

Staff recommends the Alternative No. 1.

Prepared By: Carrie Hanes, Human Resources Director
Approved By: Raul Godinez II , Interim City Manager

Attachment 1: First Amendment to Agreement (CON-20-40) for Professional Services with AdminSure.

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AMENDMENT NO. 1 TO CON-20-15
Workers Compensation Services
This Agreement entered into and made effective this 7th day of June 2022, by and between the City of Fountain Valley (hereinafter “City”) and Adminsure, a corporation (hereinafter “Consultant”).

Recitals
Whereas, CITY and CONSULTANT entered into Agreement CON-20-40 on July 1, 2020 (hereinafter “AGREEMENT”) for professional services for workers’ compensation insurance services for an amount not to exceed $168,274.00; and Whereas, CITY will continue to need workers’ compensation insurance services from CONSULTANT beyond the June 30, 2022, expiration provided for in the AGREEMENT; and
Whereas, CITY and CONSULTANT agree that the term of the AGREEMENT shall be extended through June 30, 2023; and
Whereas, CITY and CONSULTANT agree that the TOTAL CONTRACT SUM shall be increased in an amount not to exceed $100,000.00; and Now therefore, the parties do hereby agree that:

1. The term of the AGREEMENT shall be extended through June 30, 2023.

2. The TOTAL CONTRACT SUM shall be increased in an amount not to exceed $100,000.00.

3. Except as specifically stated herein, all other terms and conditions of the AGREEMENT, as amended, shall remain in full force and effect.

Approved as to Content: CITY OF FOUNTAIN VALLEY
______________________________ ___________________________ Carrie Hanes, Human Resources Director Patrick Harper, Mayor APPROVED AS TO FORM:

HARPER & BURNS LLP
__________________________ __________________________
Attorneys for the City Adminsure
ATTACHMENT 1

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Approve the Final Map for Tract No. 19115 for the property located at 9801 Starfish Avenue
EXECUTIVE SUMMARY:

Keystone DCS, a developer and an applicant of the property located at 9801 Starfish Avenue, has submitted the final map for Tract No. 19115. Keystone DCS is proposing to construct seven (7) residential homes on a vacant lot. The map meets the conditions of approval set forth by the Planning Commission Resolution and is consistent with the City’s General Plan.

Required in the conditions of approval and acceptance of the final map for Tract No.19115 the owner/developer is responsible for paying fees totaling $135,361.35.

Staff recommends that the City Council accept the final map for Tract No. 19115 for the property located at 9801 Starfish Avenue.

DISCUSSION:

Keystone DCS, developer and applicant of the property located at 9801 Starfish Avenue, has submitted the final map for Tract No. 19115. Keystone DCS is proposing to construct seven (7) residential homes on a vacant lot.

The City’s Planning Commission has reviewed and approved the tentative tract map. The final map meets the requirements of the Subdivision Map Act and is in conformance with the tentative tract map. The project is being developed per City Planning Commission Resolution. City Staff and the County Surveyor’s office have reviewed and approved the map for technical accuracy and compliance with the Subdivision Map Act. The public utility easements dedication is for a public waterline and waterline appurtenances. After acceptance of the map by the City Council, the map will be forwarded to the County for recordation.

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City Council Request
Final Map for Tract No. 19115
June 7, 2022

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FINANCIAL ANALYSIS:

Required in the conditions of approval and acceptance of the final map for Tract No.19115 the owner/developer will pay the following fees upon request for Certificate of Occupancy:

1. Public Improvement Large Project Plan Checking Deposit $ 15,000.00

2. Public Improvement Large Project Inspection Deposit $ 15,000.00

3. Final Subdivision Map Checking $ 1,540.00

4. Landscape Plan Checking/Inspection Fee $ 3,145.00

5. Drainage Annexation Fee $ 3,262.97

6. Waterline Assessment Fee $ 582.32

7. Sewerline Assessment Fee $ 582.32

8. Transportation Impact Fee $ 2,093.00

9. Park Site Fee $ 72,639.00

10.Sewer Connection Fee $ 6,517.00

11.Water Supply Facilities Fee $ 11,558.89

12. Water Meter Purchase $ 3,440.85
Total Fees: $ 135,361.35
ATTORNEY REVIEW:

The Attorney for the City has reviewed and approved the Final Map for Tract No. 19115.

RECOMMENDATION:

Staff is recommending that the City Council accept the final map for Tract No. 19115 for the property located at 9801 Starfish Avenue.

Prepared by: Kyle Hilton, Associate Engineer
Reviewed by: Temo Galvez, Deputy Public Works Director / City Engineer Approved by: Hye Jin Lee, Director of Public Works
Fiscal Review by: Ernestine Jones, Interim Finance Director/City Treasurer Approved by: Raul Godinez II, Interim City Manager
Attachment 1: Final Map for Tract No. 19115

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the Council
SUBJECT: 1) Approve the Cooperative Agreement between the City of Fountain Valley and the City of Huntington Beach for the Rehabilitation and Resurfacing of Newland Street from Slater Avenue to Talbert Avenue.

EXECUTIVE SUMMARY:

The City of Huntington Beach and the City of Fountain Valley share city boundaries along Newland Street on the westerly part of town. The City of Huntington Beach plans to rehabilitate portions of Newland Street from Slater Avenue to Talbert Avenue. This offers an excellent opportunity to collaborate on this road rehabilitation project where both cities share boundaries. For the City of Fountain Valley, staff identified Newland Street from Slater Avenue to Talbert Avenue as a candidate for roadway improvements based on field observations and a pavement investigation report. The City of Huntington Beach is taking the lead on this project, as the City of Huntington Beach owns 80% of the right of way on Newland Street. City of Fountain Valley Engineering staff is working closely with Huntington Beach Engineering staff to properly develop the plans and construction of these improvements.

This project provides rehabilitation and resurfacing of Newland Street from Slater Avenue to Talbert Avenue. Also, included in the project are sidewalk and curb ramp improvements to meet ADA compliance along all pedestrian pathways in this area. The Newland Street Rehabilitation Project will start construction at the beginning of October 2022 with anticipated completion by the end of November 2022.

Staff recommends that the City Council approve the cooperative agreement between the City of Fountain Valley and the City of Huntington Beach for the rehabilitation and resurfacing of Newland Street from Slater Avenue to Talbert Avenue.

DISCUSSION:

The City of Huntington Beach and the City of Fountain Valley have collaborated on capital improvement projects for many years and this year, both agency staff have identified Newland Street from Slater Avenue to Talbert Avenue as a candidate for roadway improvements based on field observations and a pavement investigation report. The City of Huntington Beach is taking the lead on this project, as the City of Huntington Beach owns 80% of Newland Street right of way. The City of Fountain Valley Engineering staff

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Council Action Request
Newland Street from Slater Avenue to Talbert Avenue
June 7, 2022

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will be working closely with Huntington Beach Engineering staff to properly develop the plans and construction of these improvements.

The project consists of rehabilitation and resurfacing, utilizing rubber asphalt concrete overlay, of Newland Street from Slater Avenue to Talbert Avenue. The project also includes removing and replacing deteriorated sections of curb and gutter, sidewalk, upgrading access ramps to current ADA requirements, adjusting utilities to grade, installing traffic delineation, and installing signal loops. This project will provide excellent roadway pavement conditions consistent with those currently enjoyed by Fountain Valley residents and visitors citywide.

Consistent with the Public Contract Code, the City of Huntington Beach is competitively bidding on the Newland Street paving project in the first week of June 2022 and plans to open bids toward the end of June 2022. Based on the lowest responsible bid contract, the construction contract will be considered for award by the City of Huntington Beach City Council in July 2022 at the City of Huntington Beach City Council Meeting. The project will start construction at the beginning of October 2022 with estimated completion by the end of November 2022.

The cooperative agreement outlines the project costs and the City’s fair share of construction costs. The City of Huntington Beach will be taking the lead on the construction management and inspection for the project with the City of Fountain Valley staff’s assistance and inspection during the construction phase. The City of Huntington Beach agrees to take the lead on the construction management and inspection for this project by executing the cooperative agreement.

FINANCIAL ANALYSIS

ANTICIPATED PROJECT COSTS
Engineers Estimate Construction Cost $270,000.00
Construction Contingency 10% $27,000.00
Staff Time $3,000.00
Total Anticipated Project Costs $300,000.00
FY 2022-2023 PROJECT BUDGET
FY 2022-2023 Project Budget $300,000.00
This project is part of the FY 2022-2023 City CIP Budget. The City’s share of costs of $300,000 will be funded by Measure M Funds.

ATTORNEY REVIEW:

The City Attorney has reviewed and approved the Cooperative Agreement between the City of Fountain Valley and the City of Huntington Beach.

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Council Action Request
Newland Street from Slater Avenue to Talbert Avenue
June 7, 2022

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ALTERNATIVES:

Alternative No. 1: This is the recommended action.

Approve the cooperative agreement between the City of Fountain Valley and the City of Huntington Beach. This is the recommended action, as it will permit the City to implement the needed improvements.

Alternative No. 2: Reject the cooperative agreement with the City of Huntington Beach Do not approve the cooperative agreement between the City of Fountain Valley and the City of Huntington Beach. This is not a viable alternative, as the City of Fountain Valley would not be able to take advantage of the economy of scale in implementing the needed improvements in collaboration with the City of Huntington Beach. This will also not allow the City to meet its commitment to meet OCTA Measure M timely use of funds requirements.

Alternative No. 3: Cancel the project.

This is not the recommended action as the City of Fountain Valley can benefit from economy of scale from the City of Huntington Beach’s larger-scale project with better unit price. In addition, since these roads have shared city boundaries, the same roadways will have mismatched new pavement on the Huntington Beach side and old pavement on the Fountain Valley side. This will also not allow the City to meet its commitment to meet OCTA Measure M’s timely use of funds requirements.

RECOMMENDATION:

Staff recommends that the City Council: 1) Approve the Cooperative Agreement between the City of Fountain Valley and the City of Huntington Beach for the Rehabilitation and Resurfacing of Newland Street from Slater Avenue to Talbert Avenue.

Prepared by: Terri Phan, Administrative Assistant
Recommended by: Regino DeAvila, Associate Engineer/ Project Manager Reviewed by: Temo Galvez, Deputy Public Works Director / City Engineer Approved by: Hye Jin Lee, Director of Public Works
Fiscal Review by: Ernestine Jones, Interim Finance Director/City Treasurer Approved by: Raul Godinez, Interim City Manager
Attachment No. 1: Cooperative Agreement between the City of Fountain Valley and the City of Huntington Beach

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AGREEMENT
THIS AGREEMENT, (Agreement), dated this _____ day of _________________, 2022, is made and entered into by and between the City of Huntington Beach, a municipal corporation, hereinafter referred to as “HUNTINGTON BEACH” and the City of FOUNTAIN VALLEY, a municipal corporation, hereinafter referred to as “FOUNTAIN VALLEY”.

WITNESSETH:

WHEREAS, HUNTINGTON BEACH is contemplating the rehabilitation of the pavement surface of that portion of Newland Street from Slater Avenue to Talbert Avenue located in the City of Huntington Beach, (hereinafter the “HUNTINGTON BEACH PORTION”); and,
WHEREAS, there is a portion of Newland Street located within the boundaries of FOUNTAIN VALLEY (hereinafter “FV PORTION”); and
WHEREAS, FOUNTAIN VALLEY desires to have HUNTINGTON BEACH rehabilitate the FV PORTION of Newland Street from Slater Avenue to Talbert Avenue in conjunction with the HUNTINGTON BEACH PORTION, collectively the “PROJECT”, and HUNTINGTON BEACH is willing to do so. The exact location of the FV PORTION is described in detail in the document attached hereto as Exhibit A, incorporated by this reference.

NOW, THEREFORE, in consideration of the following promises, covenants, and conditions, the parties hereto do agree as follows:

1. DUTIES OF HUNTINGTON BEACH
a. Upon commencement of the PROJECT, HUNTINGTON BEACH shall include the FV PORTION as a part of HUNTINGTON BEACH’s public works pavement rehabilitation project, prepare the request for bids, hire the lowest responsible bidder (the “Successful Contractor”), and oversee and administer the PROJECT in the FV PORTION in the same manner and to the same extent as the HUNTINGTON BEACH PORTION. HUNTINGTON BEACH shall in no event be liable to FOUNTAIN VALLEY based upon the process or result of the request for bids and/or selection of the Successful Contractor, and FOUNTAIN VALLEY hereby agrees not to contest or interfere with HUNTINGTON BEACH’s performance of the bidding process nor its selection of the Successful Contractor. If HUNTINGTON BEACH, in its sole discretion, determines not to proceed with the PROJECT at any time prior to commencement of actual work, this Agreement shall terminate with no

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further action required by either party.
b. At least thirty (30) calendar days prior to release of the Notice Inviting Bids for the PROJECT, HUNTINGTON BEACH’s City Engineer shall provide FOUNTAIN VALLEY’s City Engineer a copy of the PROJECT’s plans and specifications for his approval, which approval shall not be unreasonably withheld. If FOUNTAIN VALLEY’s City Engineer objects to the plans and specifications, and if his objections cannot be satisfied through discussions with HUNTINGTON BEACH’s City Engineer, the FV PORTION shall not be included in the PROJECT; HUNTINGTON BEACH shall proceed with the HUNTINGTON BEACH PORTION only; this Agreement shall automatically terminate; and, neither party shall have any liability or obligation to the other. c. HUNTINGTON BEACH agrees that it shall not permit nor cause any Hazardous Materials to be brought upon, kept, used, stored, generated or disposed of in, or, or about the FV PORTION. “Hazardous Materials” shall mean any material that, because of its quantity, concentration, or physical or chemical characteristics, or any combination thereof, is deemed by an federal, state, or local governmental authority to pose a present or potential hazard to human health or safety or to the environment. Notwithstanding the foregoing, both parties hereby acknowledge that the pavement rehabilitation work contemplated by this Agreement may inherently require the use of Hazardous Materials on the FV PORTION as well as the HUNTINGTON BEACH PORTION, and no liability shall inure to HUNTINGTON BEACH by the appropriate usage of such necessary Hazardous Materials in its performance of the PROJECT.

2. DUTIES OF FOUNTAIN VALLEY
a. FOUNTAIN VALLEY shall pay HUNTINGTON BEACH for the actual cost of the work on the FV PORTION based upon the unit prices set forth in the bid of the Successful Contractor and quantities actually used on the FV PORTION. The estimated cost of the FV PORTION, including a ten percent (10%) contingency, is Two Hundred and Seventy Thousand dollars and 00/100 ($270,000.00). FOUNTAIN VALLEY shall pay HUNTINGTON BEACH an amount equal to fifty percent (50%) of the estimated cost of the FV PORTION (“Initial Payment”), One Hundred Thirty Five Thousand dollars and 00/100 ($135,000.00) within fifteen (15) calendar days after the commencement of construction. FOUNTAIN VALLEY shall pay HUNTINGTON BEACH the remaining balance due for the FV PORTION upon official final approval of the work by HUNTINGTON BEACH.

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b. FOUNTAIN VALLEY agrees that any permits required by the Successful Contractor for the work to be performed on the FV PORTION shall be issued to the Successful Contractor at no cost to HUNTINGTON BEACH or the Successful Contractor.
c. FOUNTAIN VALLEY shall provide its own inspection services for the FV PORTION of the work at its own cost, and such inspections shall be conducted on the same basis and according to the same standards as are used on projects of a similar size, scope and nature in FOUNTAIN VALLEY. d. FOUNTAIN VALLEY agrees to fully cooperate with HUNTINGTON BEACH and the Successful Contractor in the prosecution of the work, traffic control, and any other matters required for completion of the PROJECT in the FV PORTION.
e. FOUNTAIN VALLEY acknowledges that HUNTINGTON BEACH is not the contractor for the PROJECT and that HUNTINGTON BEACH does not warrant any work performed by the Successful Contractor. Notwithstanding the above, HUNTINGTON BEACH shall require the Successful Contractor to provide FOUNTAIN VALLEY with any and all warranties, insurance coverage, and indemnities and any other rights the Successful Contractor agrees to provide to HUNTINGTON BEACH under the construction contract and as provided by law.
f. In addition to the above, FOUNTAIN VALLEY also agrees to pay HUNTINGTON BEACH for all costs associated with any change orders pertaining to the FV PORTION, provided the change orders have been previously approved in writing by FOUNTAIN VALLEY’s Director of Public Works.

3. ENTIRE AGREEMENT
This writing constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all oral or written representations or written agreements that may have been entered into between the parties. No modifications or revisions shall be of any force or effect, unless the same is in writing and executed by the parties hereto.

4. ASSIGNMENT
Neither FOUNTAIN VALLEY nor HUNTINGTON BEACH may assign or transfer its rights or obligations under this Agreement, or any part thereof, without the written consent of the other party.

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5. GOVERNING LAW
This Agreement shall be governed by the laws of the State of California. If any portion of this Agreement is held invalid under any applicable statute or rule of law, then such portion only shall be deemed invalid.

6. NO WAIVER
No waiver or failure to exercise any right, option, or privilege under the terms of this Agreement on any occasion shall be construed to be a waiver of any other right, option, or privilege on any other occasion.

7. NO THIRD PARTY RIGHTS
The parties do not intend to create rights in, or to grant remedies to, any third party as a beneficiary of this Agreement or of any duty, covenant, obligation, or undertaking established herein.

8. NOTICES
Notices and communication concerning this Agreement shall be sent to the following addresses:

HUNTINGTON BEACH FOUNTAIN VALLEY
City of Huntington Beach City of FOUNTAIN VALLEY
Attention: Public Works Director Attention: Public Works Director 2000 Main Street 10200 Slater Avenue
Huntington Beach, CA 92648 FOUNTAIN VALLEY, CA 92708-4736 Either party may, by notice to the other party, change the address specified above.

Service of notice or communication shall be complete, if personally served, when received at the designated address, for five (5) calendar days after deposit of said notice or communication in the United States mail.

9. EFFECTIVE DATE
The effective date of this Agreement shall be the latest date of execution hereinafter set forth opposite the names of the signatures hereto.

10. INDEMNIFICATION
Except for claims arising out of the sole active negligence of FOUNTAIN VALLEY, its officers, employees, or agents, HUNTINGTON BEACH hereby agrees to indemnify, defend and hold harmless FOUNTAIN VALLEY and its elected and appointed officials, officers, agents and employees from any and all claims, liabilities, expenses or damages of

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By: ___________________________
Director of Public Works
APPROVED AS TO FORM: DATE OF EXECUTION:
______________________________ _____________________________ FOUNTAIN VALLEY City Attorney

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Public Hearing and Introduction: Code Amendment No. 22-01 – An Amendment to Remove Section 21.10.050(a)(2)(I) From The Fountain Valley Municipal Code (FVMC) Which Includes a Sunset Date of July 16, 2021 For The Allowance of Permanent Outdoor Display and Sales for Grocery Stores Over 14,000 Gross Square Feet and Big Box Warehouse Retail Stores Over 130,000 Gross Square Feet

EXECUTIVE SUMMARY
On June 16, 2020, the City Council approved an Ordinance approving Code Amendment 20-04 amending FVMC 21.10.050 to allow for permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet. Per the amendment, outdoor displays/sales would be permitted with the approval of an Outdoor Display and Sale Permit.

The amendment to FVMC 21.10.050 for permanent outdoor display and sales, however, included a sunset date of July 16, 2021 and the regulations are therefore no longer valid.

Currently, Sprouts Farmers Market is proceeding through plan check for their new location at 17950 Magnolia and desires to provide outdoor displays and sales area on a permanent basis. To allow Sprouts, and any other qualifying stores who wish to take advantage of permanent outdoor displays the ability to do so, staff recommends a simple code change to eliminate the sunset date for permanent outdoor display and sales in the code.

At the Planning Commission meeting of May 11, 2022, the Planning Commission voted 5-0 approving Resolution No. 22-14 recommending the City Council approve Code Amendment No. 22-01. Staff recommends the City Council conduct a public hearing and introduce the attached Ordinance approving Code Amendment No. 22-01 to remove section

21.10.050(a)(2)(I) from the Fountain Valley Municipal Code (FVMC) which includes a sunset date of July 16, 2021 for the allowance of permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet.

Proposal
An amendment to remove section 21.10.050(a)(2)(I) from the Fountain Valley Municipal Code (FVMC) which includes a sunset date of July 16, 2021 for the allowance of permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet.

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Council Action Request
Code Amendment 22-01
City Council Meeting June 7, 2022

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Current Code Requirement
Per FVMC Section 21.10.050, outdoor displays/sales are permitted with the approval of an Outdoor Display and Sale Permit. The code section, however, includes a sunset date of July 16, 2021 and is therefore no longer valid.

Background
On May 29, 2019, at a Special Meeting of the City Council Strategic Planning Study Session, direction was given to Planning & Building Director to present to the City Council options to address outdoor sales/displays at commercial businesses to help enhance economic development in the City of Fountain Valley. Such outdoor displays would allow retailers the ability to market their merchandise and sales to customers as they pass a business in hopes of attracting them into the store to increase sales.

Planning Staff presented options to permit permanent outdoor display and sales at study sessions of the Planning Commission on September 11, 2019, and the City Council on September 17, 2019. Direction was provided to the Planning Department on what types of uses would be permitted to provide outdoor displays and sales, if the city wanted to consider a limited duration of the amendment as a test run, what requirements the city should look for, and enforcement of such an amendment.

On April 22, 2020, the Planning Commission recommended the City Council approve Code Amendment 20-04 and on June 16, 2020, the City Council approved a second reading of an Ordinance approving Code Amendment 20-04.

Uses and Limited Duration
In an attempt to “test the waters” of the amendment, the Planning Commission and City Council provided direction to the Planning Department to limit the types of uses that would qualify for permanent outdoor displays and sales to grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet. This would allow the following grocery stores and big box warehouse retail stores in the city to take advantage of the proposed amendment:
 Grocery Stores over 14,000 gross square feet:
o Albertsons
o Ralphs
o Stater Bros
o Aldi
o Grocery Outlet
o Smart & Final
o Sunrise Supermarket
o Sprouts Farmers Market
 Big box warehouse retail stores over 130,000 gross square feet:
o Costco
o Sam’s Club

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Council Action Request
Code Amendment 22-01
City Council Meeting June 7, 2022

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The Planning Commission and the City Council also gave direction to limit the duration of the amendment to one (1) year as a test run to evaluate the impacts and levels of enforcement. If successful, with no or limited enforcement issues, staff would return with a permanent change.

All grocery and big box warehouse retail stores were invited to participate in the public hearings before the Planning Commission and City Council when this amendment was considered in 2020. Additionally, shortly after approval of the amendment, staff sent letters to the store managers of each grocery store and big box warehouse retail store on July 29, 2020 informing them of the recently approved code change and encouraging them to participate in permitting outdoor display and sales on a more permanent basis by filling out and submitting their application for permanent outdoor display and sales permit.

Discussion
The proposed amendment (Code Amendment 22-01) would remove section

21.10.050(a)(2)(I) from the Fountain Valley Municipal Code (FVMC) which includes a sunset date of July 16, 2021. The code would continue to allow for permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet.

To date, there have been no applications submitted for permanent outdoor displays and sales and as such, there have been no enforcement issues with the code change. Currently, Sprouts Farmers Market is proceeding through plan check for their new location at 17950 Magnolia and desires to provide outdoor displays and sales area on a permanent basis. To allow Sprouts, and any other qualifying stores who wish to take advantage of permanent outdoor displays the ability to do so, staff recommends a simple code change to eliminate the sunset date for permanent outdoor display and sales in the code.

The existing development standards for permanent outdoor display and sales will remain in the code. The standards will limit the size, location, height, aesthetics, operations, hours, maintenance, unpermitted uses, and revocation of permanent outdoor displays and sales areas. Permanent outdoor display and sales shall:
 Not encroach into public right-of-way, traffic sight areas, parking areas, driveways, shopping cart areas, accessible paths of travel, seating areas, landscape areas, or vehicular circulation areas, and maintain at least an 8’0” wide clearance from the public entrance and/or exit to the nearest driveway or, if fronting on a courtyard, as determined by the city.
 Be approved by the Planning Department. They shall be immediately abutting the grocery store or big box warehouse building and allowed on main public entry side of the building only.
 Maintain a professional appearance utilizing platforms, racks, shelfs, containers that are themed or visually coordinated – no cardboard boxes, clothes racks, platforms on cinderblocks, pallets.
 Be physically demarcated with pavement materials or concrete seams, medallions, or monuments in the pavement – non-permanent markers such as paint, tape, chalk lines are not acceptable.

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Council Action Request
Code Amendment 22-01
City Council Meeting June 7, 2022

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 Only display and sell items outside that are normally sold in the store.  Be limited in linear length of display not exceeding 10% of the linear length of the business. Depth will be determined on a case-by-case basis depending upon sidewalk/courtyard clearances.
 Be limited to a maximum display height of 6’0” from grade.  Allow unlimited signage that does not exceed 5”x5” in area and one (1) sign not exceeding 2 square feet per display.
 Be restricted to the hours of operation of the corresponding business. All products must be moved inside the store at the close of business each day.  Be kept free of garbage and debris.
 Prohibited uses in permanent outdoor display and sales areas include:
o Displays that are unorganized, cluttered, careless, and messy look in appearance.
o Vending machines, mechanical rides, or similar uses.
o Mechanically produced sound, amplified sound, or live music. o Prohibited signs per the Sign Code.
o Displays of goods or materials prohibited by the Municipal Code.  Be revoked or modified due to the following:
o Circumstances under which the permit was granted have been changed that affect the public convenience, health, interest, safety, or welfare of the public. o Misrepresentation or omission of information on the application. o One or more requirements of the permit have not been fulfilled or have been violated.
o Violation of any code, law, ordinance, regulation, or statute of the city, state, or federal government.
o Outdoor display and sales becoming detrimental to the public convenience, health, interest, safety, or welfare of the public thus creating a nuisance.

In summary, with the proposed elimination of the sunset date outlined above, the code will continue to allow grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet the ability to provide permanent outdoor displays and sales meeting the requirements of this section. Planning staff would verify compliance with the standard requirements with the applicant through a Permanent Outdoor Display and Sales Permit and the applicant’s submittal of a site plan outlining their display area and photograph examples of display platforms, racks, shelves, or containers to be utilized. Staff would then inspect the designated area to be utilized for the permanent outdoor display and sales and provide a final approval when the display is assembled.

Strategic Plan and General Plan Consistency
The proposed amendment will meet the City Council’s Strategic Plan Goal #3 to enhance economic development in the City of Fountain Valley. The amendment will also meet General Plan Goal 2.12.1 to enhance the city’s economic base and business environment by assisting in the improvement and intensification of commercial development in the City of Fountain Valley. The proposed amendment will only eliminate the sunset date from the existing code to allow for permanent outdoor display and sales for grocery stores over 14,000 square feet and big box warehouse retail stores over 130,000 gross square feet. The proposed amendment to eliminate the sunset date will still allow for permanent outdoor display and sales, which was approved through Ordinance 1561 by the City Council on June

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Council Action Request
Code Amendment 22-01
City Council Meeting June 7, 2022

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16, 2020, that will enhance the city’s economic base and business environment by assisting in the improvement and intensification of commercial development. Additionally, the existing code will still allow for outdoor displays and sales while preserving safety and aesthetics by limiting the size, location, height, operations, and maintenance of the areas as well as allow an avenue to revoke the Permanent Outdoor Display and Sales Permit if necessary.

Planning Commission
At the Planning Commission meeting of May 11, 2022, the Planning Commission voted 5-0 approving Resolution No. 22-14 recommending the City Council approve Code Amendment No. 22-01.

ENVIRONMENTAL REVIEW
The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures. CA 22- 01 is not subject to review under CEQA pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment). CA 22-01 will only eliminate the sunset date from the existing code that allows for permanent outdoor display and sales for grocery stores over 14,000 square feet and big box warehouse retail stores over 130,000 gross square feet (Attachment #1).

FINANCIAL ANALYSIS
There is no financial impact associated with approving the proposed code amendment.

ATTORNEY REVIEW
The Attorney for the City has reviewed the attached Ordinance (Attachment #2).

PUBLIC NOTIFICATION
The item was published in the Fountain Valley View and public notices were posted at City Hall, Recreation Center, and Fountain Valley Library.

ALTERNATIVES:

1. Introduce the attached Ordinance approving a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approving Code Amendment No. 22-01 to remove section 21.10.050(a)(2)(I) from the Fountain Valley Municipal Code (FVMC) which includes a sunset date of July 16, 2021 for the allowance of permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet.

2. Do not introduce the attached Ordinance approving a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approving

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Council Action Request
Code Amendment 22-01
City Council Meeting June 7, 2022

Page 6 ends

Code Amendment No. 22-01 to remove section 21.10.050(a)(2)(I) from the Fountain Valley Municipal Code (FVMC) which includes a sunset date of July 16, 2021 for the allowance of permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet.

3. Continue the request for additional information.

Recommended Action
Staff recommends that the City Council select Alternative No. 1 – Introduce the attached Ordinance approving a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approving Code Amendment No. 22-01 to remove section

Prepared By: Steven Ayers, Principal Planner
Approved By: Omar Dadabhoy, Community Development Director Fiscal Review By: Ernestine Jones, Interim Finance Director/Treasurer Approved By: Raul Godinez II, Interim City Manager
Attachments: 1. Notice of Exemption

2. Ordinance for Code Amendment No. 22-01

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CITY OF FOUNTAIN VALLEY
Planning Department
10200 Slater Avenue, Fountain Valley, CA 92708
714-593-4425 – fountainvalley.org
Notice of Exemption_________________________________________________ TO: Office of Planning and Research FROM: City of Fountain Valley P.O. Box 3044, Room 113 10200 Slater Avenue
Sacramento, CA 95812-3044 Fountain Valley, CA 92708
County Clerk
County of Orange
12 Civic Center Plaza
Santa Ana, CA 92701
Project Title: _________________________________________________________________________ Project Location/Address: ______________________________________________________________ Project Activity/Description: _____________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ Public Agency Approving Project: City of Fountain Valley, Orange County, California Project Applicant: _____________________________________________________________________ Project Applicant’s Address: ___________________________________Phone Number: ____________ _____________________________________________________________________________ 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: _________________________________ Statutory Exemptions. State code number: ___________________________________________ Reasons why project is exempt: __________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Lead Agency Contact Person: ___________________________ Contact Phone: _____________________________ 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 Signature: ________________________________ Date: _____________ Title: ___________________ Signed by Lead Agency Signed by Applicant

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY APPROVING A CATEGORICAL EXEMPTION PER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVING CODE AMENDMENT (CA) NO. 22-01 TO REMOVE SECTION

21.10.050(a)(2)(I) FROM THE FOUNTAIN VALLEY MUNICIPAL CODE (FVMC) WHICH INCLUDES A SUNSET DATE OF JULY 16, 2021 FOR THE

ALLOWANCE OF PERMANENT OUTDOOR DISPLAY AND SALES FOR
GROCERY STORES OVER 14,000 GROSS SQUARE FEET AND BIG BOX WAREHOUSE RETAIL STORES OVER 130,000 GROSS SQUARE FEET
WHEREAS, the Fountain Valley City Council adopted the Development Code Update on December 7, 2000; and
WHEREAS, on May 29, 2019, at a Special Meeting of the City Council Strategic Planning Study Session, direction was given to Planning and Building Director to present to the City Council options to address outdoor displays at commercial businesses to help enhance economic development in the City of Fountain Valley; and WHERAS, on September 11, 2019, the Planning Department presented options to the Planning Commission during a study session to permit permanent outdoor display and sales areas and received input; and
WHEREAS, on September 17, 2019, the Planning Department presented options to the City Council during a study session to permit permanent outdoor display and sales areas and received input; and
WHEREAS, the amendment to FVMC 21.10.050 incorporates input received from both study sessions of the Planning Commission on September 11, 2019 and City Council on September 17, 2019; and
WHEREAS, on April 22, 2020, the Fountain Valley Planning Commission considered CA 20-04 at a duly noticed public hearing and recommended the City Council approve a categorical exemption per CEQA and approve CA 20-04 to amend FVMC 21.10.050 to allow for permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet; and WHEREAS, on June 16, 2020, the Fountain Valley City Council adopted Ordinance 1561 approving CA 20-04 to amend FVMC Section 21.10.050 to allow for permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet; and
WHEREAS, Ordinance 1561 approving CA 20-04 became law 30 days after adoption on July 16, 2020; and
WHEREAS, Ordinance 1561 approving CA 20-04 included an amendment to restrict the time frame for grocery stores and big box warehouse retail stores to apply for a permanent outdoor display to one (1) year with a sunset date of July 16, 2021; and

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WHEREAS, the time frame limit of one (1) year was included in the ordinance to ensure permanent outdoor display and sales would not create a strain on city services and would not create any enforcement issues; and
WHEREAS, since the adoption of Ordinance 1561 approving CA 20-04, no applications for a permanent outdoor display and sale have been submitted to the Planning and Building Department and has therefore not been a strain on city services or enforcement; and
WHEREAS, the City desires to remove Section 21.10.050(a)(2)(I) from the FVMC which includes a sunset date of July 16, 2021 for the allowance of permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet; and
WHEREAS, the Fountain Valley Planning Commission considered CA 22-01 at a duly noticed public hearing on May 11, 2022, and by a vote of 5-0 recommended the City Council approve CA No. 22-01; and
WHEREAS, the proposed CA 22-01 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code.

NOW, THEREFORE, the City Council of the City of Fountain Valley does ORDAIN as follows:

SECTION 1
The City Council hereby determines that CA 22-01 is not subject to review under CEQA pursuant to CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment). CA 22-01 will only eliminate the sunset date from the existing code that allows for permanent outdoor display and sales for grocery stores over 14,000 square feet and big box warehouse retail stores over 130,000 gross square feet.

SECTION 2
The City Council finds that due notice of the public hearing on June 7, 2022, conducted in the City Council Chambers, 10200 Slater Avenue, Fountain Valley, was given as required by the Fountain Valley Municipal Code, Title 21, and the State of California. Public notice of this hearing and a copy of the Planning Commission agenda were posted at City Hall, Recreation Center and the Fountain Valley Library.

SECTION 3
Pursuant to Fountain Valley Municipal Code section 21.34.050 the City Council does hereby find as follows:

1. The proposed amendment ensures and maintains internal consistency with the actions, goals, objectives and policies of the General Plan, and would not create

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any inconsistencies with Title 21, in the case of a title amendment. The amendment will also meet General Plan Goal 2.12.1 to enhance the city’s economic base and business environment by assisting in the improvement and intensification of commercial development in the City of Fountain Valley. The proposed amendment will only eliminate the sunset date from the existing code to allow for permanent outdoor display and sales for grocery stores over 14,000 square feet and big box warehouse retail stores over 130,000 gross square feet. The proposed amendment to eliminate the sunset date will still allow for permanent outdoor display and sales, which was approved through Ordinance 1561 by the City Council on June 16, 2020, that will enhance the city’s economic base and business environment by assisting in the improvement and intensification of commercial development. Additionally, the existing code will still allow for outdoor displays and sales while preserving safety and aesthetics by limiting the size, location, height, operations, and maintenance of the areas as well as allow an avenue to revoke the Permanent Outdoor Display and Sales Permit if necessary.

2. The proposed amendment would not be detrimental to the public convenience, health, interest, safety or welfare of the city. The proposed amendment would only eliminate a sunset date for the existing code allowing permanent outdoor display and sales. The code will continue to clearly identify standards that must be met including aesthetic, area, height, clearance, and location standards that will prevent permanent outdoor displays and sales areas from being detrimental to the public convenience, health, interest, safety or welfare of customers visiting the stores.

3. The proposed amendment has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures as addressed in Section 1 above.

4. The proposed amendment is internally consistent with other applicable provisions of Title 21. As noted in finding 1 above, FVMC Section 21.10.050 would only be amended to eliminate the sunset date for the code that allows for permanent outdoor display and sales for grocery stores over 14,000 gross square feet and big box warehouse retail stores over 130,000 gross square feet. This change will be internally consistent with Title 21. There are no other known inconsistencies with the proposed amendment and other applicable provisions of Title 21.

SECTION 4
Section 21.10.050(a)(2)(I) is hereby amended to read as follows:
“…
(I) Subsection (2) of this section shall remain in effect until July 16, 2021. …”

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SECTION 5
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would subsequently be declared invalid or unconstitutional.

SECTION 6
The City Clerk shall certify to the adoption of this ordinance and cause it to be published as required by law. This ordinance shall become effective thirty (30) days after the date of its adoption.

PASSED, APPROVED AND ADOPTED THIS DAY OF , 2022.

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
Attorneys for the City

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Adopt a Policy on Enhanced Noticing of Development Projects EXECUTIVE SUMMARY:

During a study session the Council directed staff to amend the City’s policy on Public Notification regarding enhanced noticing of development projects to provide for notice via PCTA, email, and any no cost enhanced notice methods. Thereafter, a motion and a second were made that the Policy be brought back to Council with a provision that post card notice to the entire City be provided for any project of 5 stores or greater OR any project 60 feet in height or above. At the most recent Council meeting, a motion was made and seconded that the City provide notification and a brief description of all upcoming development projects in the electronic Fountain Valley Newsletter. This item includes amended Policy language, shown in red to implement those requested policy changes. This amendment also includes housekeeping amendments to City’s FVMC noticing provision and non-substantive amendments to other portions of the Public Notification policy as it currently exists to provide greater clarity.

DISCUSSION:

There are various types of public noticing requirements. This item considers public notice of development projects. Generally, development projects come in two forms: public (when the City builds its infrastructure) and private (when a private party develops its land).

When the City develops, the matter is generally handled by the Public Works Department.

When private parties develop, the matter is generally handled by the Community Development Department.

Private development is largely regulated by the State Planning and Zoning Law (Gov’t Code §§ 65000 et seq.) and Fountain Valley Municipal Code Chapter 21 (Community Development).

Under State law, public hearings for a legislative approvals (general/specific plan and zoning amendments) generally require publication and posting. (Gov. Code 65090.) Public hearings for adjudicatory decisions (tentative maps, variances, use permits, and other discretionary development permits) generally require publication / posting and delivery or mailing of notice to the applicant and affected property owners. (Gov. Code 65091.) State law contains no

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Discussion of Enhanced Noticing
June 7, 2022

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generally applicable notice requirements for public projects, though City infrastructure projects do go through public noticing when they are considered a “project” under CEQA.

As part of the noticing of adjudicative projects, notice must be mailed or delivered 10 days prior to the hearing to the owners of property within 300 feet of the project. (Gov. Code 65091.) Though State Law requires 300-foot notice, the Fountain Valley Development Code (FVMC

21.58.020(c)) provides that, when an entitlement or other land use matter requires a public hearing, notice shall be mailed to owners and tenants of real property “within a five hundredfoot radius of the subject parcel.” City’s currently existing policy on Public Notice implements that 500-foot notice requirement.

During a study session, the Council directed Staff to amend the policy to provide for notice via PCTA, email, and any no cost enhanced methods. A motion and a second were later made to bring the policy back to Council with a provision that postcard notice be provided to the entire City for any project of 5 stores or greater or 60 feet in height or above. More recently, a motion was made and seconded that City provide notice of all development projects with a brief description of the project, in the Fountain Valley Newsletter.

PROPOSED POLICY
Directive, Not Mandatory: The proposed Policy is directive, not mandatory. This means that the Council directs Staff to provide notice as outlined in the policy but the failure to provide that notice shall not impact the validity of a decision, discussion, or action on a project. Rather, if there is a shortcoming in providing the notice required by the Policy, the Council can continue the matter for proper notice or exercise its discretion to hear and act on the project despite the deviation from the enhanced notice requirement. Of course, the Policy provides that minimum notice per State law is required.

Adjudicative Projects: The Policy also provides (and did before the amendments brought before Council for this item) for enhanced notice of projects that are required to be noticed by delivery or mailing under Gov Code 65091. These projects tend to be the adjudicative decisions. The enhanced notice provisions provide (with a suggested substantive change to the current provisions of the policy noted in red):

1. When notice is to be mailed or delivered pursuant to 65091(a)(3), the 300-foot noticing distance shall be increased to 500 feet. The 500-foot noticing distance provided for by this Policy shall be measured from the exterior property lines of the real property that is the subject of the hearing.
a. Notification boundaries shall include lots on both sides of interior residential streets.
b. All developed property not identified on the latest equalized assessor’s tax role but for which Certificate of Occupancies have been issued by the City should be notified and addressed as “Occupant.”

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Discussion of Enhanced Noticing
June 7, 2022

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2. For a project that is located on real property that fronts an arterial street, the 500-foot radius shall not include the width of the arterial street and shall begin on the opposite side of the street.

3. For a project that is located adjacent to freeway right-of-way, the 500-foot radius shall not include the width of the freeway right-of-way and shall begin on the opposite side of the freeway right-of-way.

4. For a project that is located on property next to a mobile home park, notification via delivery or mail shall be provided to the occupants of each mobile home space that is located within the 500 ft. radius in addition to the owner of the mobile home park.

5. For a project that is adjacent to a homeowners’ association, for which the names and addresses of officers of the homeowners’ association are on file with the City, all officers of said homeowners’ association shall be notified.

6. For a project that has regional significance, the Community Development Director shall provide notice to a significantly larger area as determined in his or her discretion.

7. For a project that is located within or adjacent to commercial or industrial centers, notice shall be provided to the property owner of the commercial or industrial center as well as to all commercial/industrial tenants located within the 500-foot radius.

Notice of Development Projects: Additional provisions that were added as directed following the Study Session and Council Items for Future Consideration are as follows:

Any Development Project:

For any development project (public or private), notice of the project shall be provided, along with a brief description of the project, in the electronic Fountain Valley Newsletter, at least 10 calendar days prior to the City Council or Planning Commission meeting at which the project will be discussed or acted upon.

Large Development Project:

For any development project (public or private) that is proposed to be 5 stories or above, or 60 feet in height or above (as measured from the ground adjacent to the project) (see FVMC

21.18.050), notice of any discussion or action before the City Council or Planning Commission shall be provided (as used herein, notice is considered provided on the day it is placed for pickup in the US Mail) at least 10 calendar days prior to the public meeting at which the project will be discussed or acted upon, as follows:

1. By advertisement on the Public Cable Television Authority; and

2. By email to all persons on City’s list of recipients of the electronic Fountain Valley Newsletter; and

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Discussion of Enhanced Noticing
June 7, 2022

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3. By posting the item on the City’s website; and

4. By postcard to all residential properties in the City.

Application:

The following illustrates how the Policy is proposed to be applied:

1. Fam Vans: It appears the first project that may be affected by this Policy, if adopted, will be Fam Vans. Fam Vans is located in the Crossings Specific Plan and requires the approval of a Development Plan Review before the Planning Director at a public hearing. Fam Vans received approval for their project on July 21, 2021, for a 2-story structure with a 3rd story roof deck but has recently decided to modify the Project to a 3-story structure with a 4th story roof deck. While this change falls below the 5-story mark, the tallest point of the project will be 66 feet and thus will be subject to the new Policy.

Other, hypothetical examples, include:

2. A City zone change to create a new zone allowing buildings of 65 feet in height: This would be a legislative action that would not trigger the State notice provisions for adjudicative actions (65091) and, therefore, would also not trigger the City’s enhanced noticing for adjudicative decisions. Because a “zone change” is not a “development project,” the zone change would not trigger the enhanced notice for larger projects or the requirement to notice any development project in the Fountain Valley Newsletter.

3. A City lease to a private party to build a 5-story parking structure at Mile Square Park:

Because this project is on City land it would not require an adjudicative permit such as a CUP that would trigger the 65091 notice procedures and, therefore, would not trigger this Policy’s enhanced notice procedure for adjudicative projects. However, because this is a development project it would require notice and a brief description in the electronic Fountain Valley Newsletter and because it is a project of 5 stories or more, it would trigger the PCTA, email, website, and postcard notice provisions of the noticing procedure for larger projects.

FISCAL REVIEW:

ATTORNEY REVIEW:

The Attorneys for the City prepared this item.

RECOMMENDATION:

The amount of notice above that required by State law is at Council’s discretion. Staff has no recommendation.

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Discussion of Enhanced Noticing
June 7, 2022

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Prepared by: Colin Burns, Attorney for the City
Reviewed by: Omar Dabdaboy, Director of Planning and Building Fiscal Review: Ernestine Jones, Finance Director
Approved by: Raul Godinez II, City Manager

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL POLICY

PUBLIC NOTIFICATION

POLICY STATEMENT
State law provides various minimum levels of notice that must be provided to the public prior to holding a hearing on a private development project or planning and zoning matter.

The City of Fountain Valley has historically provided notice that exceeds the minimum amounts required by State law. This Policy details the City’s standards for providing enhanced notice of such projects and matters.

REQUIRED NOTICE
Notwithstanding anything in this Policy to the contrary, the minimum amount of notice shall be that which is required by State law. Anything above the minimum notice required by State law is referred to herein as “enhancing noticing.” The enhanced noticing provisions of this Policy are directive, not mandatory. The failure to provide the enhanced notice discussed in this Policy shall not void or invalidate any City action, discussion, or decision.

ENHANCEMENTS TO STATE LAW NOTICING REQUIREMENTS
Whenever a public hearing is required to be noticed in accordance with Government Code Section 65091, the following shall apply:

2. For a project that is located on real property that fronts an arterial street, the 500- foot radius shall not include the width of the arterial street and shall begin on the opposite side of the street.

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6. For a project that has regional significance, the Community Development Director shall provide notice to a significantly larger area as determined in his or her discretion.

ENHANCED NOTICE OF ALL DEVELOPMENT PROJECTS
For any development project (public or private), notice of the project shall be provided, along with a brief description of the project, in the electronic Fountain Valley Newsletter, at least 10 calendar days prior to the City Council or Planning Commission meeting at which the project will be discussed or acted upon.

ENHANCED NOTICE OF LARGER DEVELOPMENT PROJECTS
For any development project (public or private) that is proposed to be 5 stories or more, or 60 feet in height or above (as measured from the ground adjacent to the project) (see FVMC 21.18.050), notice of any discussion or action before the City Council or Planning Commission shall be provided (as used herein, notice is considered provided on the day it is placed for pickup in the US Mail) at least 10 calendar days prior to the public meeting at which the project will be discussed or acted upon, as follows:

1. By advertisement on the Public Cable Television Authority; and

2. By posting the item on the City’s website; and

3. By postcard to all residential properties in the City.

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Adopted/Effective: This policy shall supersede the City Council’s Policy on Public Notification adopted on March 21, 1989, including any amendments thereto.

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
TO: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Consider and Approve Employment Agreement Between City of Fountain Valley and Maggie Le-Nguyen to Serve as City Manager

EXECUTIVE SUMMARY
After an extensive recruitment process, background and reference checks, review of approximately 30 well-qualified candidates, and multiple interview panels, the City Council selected Maggie Le to serve as City Manager. Proposed for Council approval is an Employment Agreement with Maggie Le providing for her appointment and the terms and conditions of her employment.

DISCUSSION
The City’s most recent City Manager, Rob Houston, recently left after a successful tenure as City Manager. Following Mr. Houston’s departure, the City began an extensive recruitment process to search for the best candidate to serve as City Manager and implement the policies and direction of the City Council.

As part of that process, City engaged Bob Hall and Associates (BHA) to recruit and vet qualified candidates. BHA brought in a large, highly qualified pool of approximately 30 candidates for Council’s consideration.

Council conducted an extensive review of those candidates, and interviewed numerous of the top-qualified persons. As a result of that process, the Council selected Maggie Le as the new City Manager.

Maggie Le currently serves as Deputy City Manager. Before that, Ms. Le was Interim Human Resources Director and worked in the City Manager’s office as Assistant to the City Manager. Ms. Le also served as Economic Development Manager for the City of Chino and Management Analyst for the City of Placentia; and has other management level service working for the City of Brea.

Ms. Le has extensive experience in economic development, community engagement via social media/newsletter/newsflash, and operations of the City Manager’s office, including

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Council Action Request
City Manager Employment Agreement
June 7, 2022

Page 2 ends

budget management. She assisted in the passage of Measure HH – Essential Services (1% sales tax initiative) to solve the City’s financial challenges through 2037, including hosting over 40 community meetings. She oversaw the award of COVID-19 relief grants and raised $100,000 in sponsorships to implement the first inaugural Experience Fountain Valley Food & Wine. Ms. Le served on negotiating teams and negotiated numerous labor agreements between 2017 and 2021.

Ms. Le is highly involved in a network of professional associations, including the Orange County City Manager’s Association, and is well known in the Fountain Valley community.

Pursuant to the Brown Act, action taken on the compensation or benefits of a high level city employee must occur at a regular public meeting and be preceded by a staff report.

The attorney for the City will present the staff report on this item during the Council meeting.

ALTERNATIVES:

Alternative No.1: Approve an Employment Agreement Between City of Fountain Valley and Maggie Le-Nguyen to Serve as City Manager
Alternative No. 2: Do not approve the Employment Agreement.

ATTORNEY REVIEW:

The Attorney for the City prepared this item and has reviewed and approved the Employment Agreement.

PUBLIC NOTIFICATION:

This matter was agendized in compliance with the Ralph M. Brown Act.

Prepared By: Colin Burns, Attorney for the City
Attachment 1: Employment Agreement Between City of Fountain Valley and Maggie LeNguyen to Serve as City Manager

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09999.0009/794626.8

EMPLOYMENT AGREEMENT

CITY MANAGER

BETWEEN

CITY OF FOUNTAIN VALLEY
AND

MAGGIE LE-NGUYEN
This employment agreement sets forth the terms of employment between the City of Fountain Valley and Maggie Le-Nguyen for the position of City Manager.

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Maggie Le-Nguyen Employment Agreement Effective: June 11, 2022 09999.0009/794626.8 - 1 -

TABLE OF CONTENTS
PAGE NO.

RECITALS 4
ARTICLE 1 DUTIES 5
ARTICLE 2 DEVOTION TO CITY’S BUSINESS AND HOURS OF
WORK
6 Section 2.01 Full-Time Employment 6
Section 2.02 Exclusive Employment 6
Section 2.03 Exempt (From FLSA) Status 6
ARTICLE 3 TERM 6
Section 3.01 Term 6
Section 3.02 At-Will Status 6
Section 3.03 Government Code §53243.2 6
ARTICLE 4 COMPENSATION 6
Section 4.01 Compensation 6
Section 4.02 Performance Evaluation 7
Section 4.03 Annual Physical 7
Section 4.04 City Vehicle 7
Section 4.05 Cellular Telephone 7
Section 4.06 Matching Deferred Compensation Contribution 7 ARTICLE 5 RETIREMENT 8
Section 5.01 CalPERS 8
Section 5.02 California Employees’ Pension Reform Act of 2013 8 Section 5.03 Classic/Legacy Employees under the California Employees’ Pension Reform Act of 2013
8 Section 5.04 Contributions Towards Retirement 8
ARTICLE 6 HEALTH AND OTHER INSURANCE 9
Section 6.01 Group Medical and Dental Insurance 9
Section 6.02 City Contribution 9
Section 6.03 Cafeteria Plan 9
Section 6.04 The Purchase of Optional Benefits Through the Cafeteria Plan
10

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Maggie Le-Nguyen Employment Agreement Effective: June 11, 2022 09999.0009/794626.8 - 2 -
Section 6.05 Designate Flex Dollars Towards the Employee’s Contribution Towards Deferred Compensation
10 Section 6.06 The Receipt of Cash Through the Cafeteria Plan 10 Section 6.07 Term Life Insurance 10
Section 6.08 Long-Term Disability Insurance 10
Section 6.09 Additional Flexible Spending Account 11
Section 6.10 Wellness/Fitness Reimbursement 11
ARTICLE 7 MEDICAL AND DENTAL INSURANCE FOR

RETIREES
12 Section 7.01 City Contributions Towards Premiums 12
Section 7.02 Eligibility Criteria 12
Section 7.03 City Contribution 12
Section 7.04 Retiree (City Manager) Medicare Coverage 12 ARTICLE 8 LEAVES 12
Section 8.01 Holidays 12
Section 8.02 Vacation Accrual 13
Section 8.03 Administrative Leave 14
Section 8.04 Sick Leave Accrual Rate 14
Section 8.05 Sick Leave Usage 14
Section 8.06 Sick Leave Payoff 15
Section 8.07 Retirement Credit for Unused Sick Leave 15 Section 8.08 Bereavement Leave 15
Section 8.09 Industrial Injury Leave 15
ARTICLE 9 EXPENSES 15
ARTICLE 10 HEIRS AND ASSIGNS 16
ARTICLE 11 SEPARATION 16
Section 11.01 Resignation 16
Section 11.02 Termination Without Cause 16
Section 11.03 Termination for Cause 17
Section 11.04 Reimbursement After Conviction of Abuse of Office 18 ARTICLE 12 SEVERABILITY 18

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Maggie Le-Nguyen Employment Agreement Effective: June 11, 2022 09999.0009/794626.8 - 3 -
ARTICLE 13 CONFLICT OF INTEREST 18
ARTICLE 14 CONFIDENTIALITY 18
ARTICLE 15 NOTICES 18
ARTICLE 16 ENTIRE AGREEMENT 19
ARTICLE 17 MODIFICATION 19
ARTICLE 18 CITY MANAGER’S INDEPENDENT REVIEW 19
ARTICLE 19 STATE LAW 19

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Maggie Le-Nguyen Employment Agreement Effective: June 11, 2022 09999.0009/794626.8 - 4 -

RECITALS
This AGREEMENT is made and entered into this 11th day of June 2022, by and between the City of Fountain Valley, a municipal corporation, (hereinafter called “CITY”) and Maggie Le-Nguyen, an individual (hereinafter sometimes called “EMPLOYEE”).

WHEREAS, Maggie Le-Nguyen is currently the CITY’s Deputy City Manager and has provided services which have exceeded the expectations of the City Council; and WHEREAS, it is the desire of the City Council to appoint Maggie Le-Nguyen to the position of City Manager after conducting a competitive search to find the best candidate; and
WHEREAS, it is the desire of the City Council to provide certain benefits to continue to retain Maggie Le-Nguyen as City Manager in light of her performance; and WHEREAS, the parties desire to set forth the benefit package and other terms and conditions of employment in this AGREEMENT so that EMPLOYEE will remain in City’s employ; and
WHEREAS, it is the desire of the parties to confirm the benefits and duties and to establish the respective terms and conditions of employment, as set forth herein; and WHEREAS, the parties do hereby desire to comply with Chapter 692 of the 2011 Statues (AB 1344); and
NOW, THEREFORE, in consideration of mutual covenants herein contained, the parties agree as follows:

ARTICLE 1 - DUTIES
Section 1.01- Employee Duties. The City Council employs EMPLOYEE as City Manager of the City of Fountain Valley to perform the functions and duties of City Manager as specified in Government Code Sections 34851 et seq., Chapter 2.16 of the Fountain Valley Municipal Code, and the job description, and to perform other legally permissible and proper duties and functions consistent with the office of the City Manager as the City Council shall from time to time assign. EMPLOYEE agrees to perform said duties in a competent, diligent, and honest manner. EMPLOYEE agrees to perform said duties on a full-time basis and agrees not to engage in other employment which is inconsistent, inimical, or incompatible with said duties.

ARTICLE 2– DEVOTION TO CITY’S BUSINESS AND HOURS OF WORK Section 2.01 – Full-Time Employment. The City Manager position is considered a full-time position. The EMPLOYEE shall devote EMPLOYEE’S time, ability, and attention to the business of the CITY during the term of this AGREEMENT.

Section 2.02 – Other Activities. EMPLOYEE shall not engage, without the express prior written consent of the City Council, in any other business duties or pursuits whatsoever, or

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directly or indirectly render any services of a business, commercial, or professional nature to any other person or organization, whether for compensation or otherwise, that is or may be competitive with the CITY, that might cause a conflict-of-interest with the City, or that otherwise might interfere with the business or operation of the City or the satisfactory performance of the functions and duties of city manager.

Section 2.03 – Exempt (From FLSA) Status. Pursuant to the Fair Labor Standards Act, the CITY hereby determines that the City Manager position is exempt from both the minimum wage and overtime provisions of the Fair Labor Standards Act (“FLSA”) under the Executive Exemption. As an exempt employee under the FLSA, the City Manager shall not be entitled to any additional compensation for hours worked in excess of forty (40) in a work week.

EMPLOYEE is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager position.

ARTICLE 3 - TERM
Section 3.01 – Term. The AGREEMENT shall be effective June 11, 2022 and shall continue in effect until terminated as provided in Article 11 of this AGREEMENT.

Section 3.02 – At-Will Status. The City Manager is an at-will employee and serves at the pleasure of the City Council.

ARTICLE 4 - COMPENSATION
Section 4.01 – Compensation. The base salary rate for the position of City Manager, effective June 11, 2022, is Two Hundred Forty-Five Thousand Dollars ($245,000) per year.

EMPLOYEE’S compensation shall be subject to deductions and withholdings as required for federal and state income tax, Medicare, and any other deductions in accordance with federal, state, or local law.

Any increases in the annual base salary of the City Manager position, to the extent provided, may be made effective at any time and shall be made at the sole discretion of the City Council. Increases in the City Manager position’s annual base salary approved by the City Council shall not require an amendment to this AGREEMENT to be effective. Such increases shall be set forth in a Resolution approved by the City Council at a regular meeting of the City Council.

Section 4.02 – Performance Evaluation. The City Council shall, on an annual basis, define the goals and performance objectives which it deems necessary for the proper operation of the City Council’s policy objectives, and the City Council shall prioritize those goals and objectives. The annual goals and objectives shall be established on a fiscal year basis to take into consideration the funds available. The City Council shall review and evaluate EMPLOYEE’s performance of the City Manager position following the conclusion of the initial six-month period after the effective date of EMPLOYEE’s appointment (January 2023).

Thereafter, the City Council shall review and evaluate EMPLOYEE annually at the conclusion of each fiscal year, beginning June 2023. Evaluations may be conducted in accordance with

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specific criteria developed by the City Council and City Council may make adjustments to such criteria, if warranted, every year.

CITY and EMPLOYEE agree to conduct a salary and benefits review concurrently with the performance evaluations set forth in Section 4.02. Following each performance evaluation, City Council may provide increases in the base salary and/or benefits. Additionally, the City Council may choose to reward EMPLOYEE with non-base building merit increases to recognize outstanding accomplishments that exceed expectations.

Section 4.03 – Annual Physical. EMPLOYEE shall be entitled to one (1) of the following with respect to annual (calendar year) physical examinations:

A. A complete physical examination conducted by the CITY’s physician or participation in a CITY-sponsored physical fitness program.

B. Reimbursement equal to the amount the CITY pays the CITY’s physician for a comparable examination with the physical examination conducted by a physician other than the CITY’s physician. EMPLOYEE will be required to submit a summarized doctor bill to the Human Resources Department prior to the CITY issuing a reimbursement check to EMPLOYEE.

Section 4.04 – City Vehicle. The duties of the City Manager position require the use at all times during the duration of this AGREEMENT of an automobile provided by the CITY.

EMPLOYEE shall be entitled to the use of such automobile for business use and personal use subject to any lease limitations. The CITY shall be responsible for paying all costs related thereto, including, but not limited to, liability, property damage, and comprehensive insurance and for the purchase, operation, maintenance, and repair of such an automobile, including gasoline. EMPLOYEE will be responsible for taxes on personal use of CITY vehicle, per IRS Publication 15-B.

Section 4.05 – Cellular Telephone and Technology. The CITY shall provide EMPLOYEE with a cellular telephone, laptop and/or iPad for business use during the duration of this AGREEMENT. The CITY shall be responsible for paying the costs for such cellular telephone, laptop, and/or iPad. Usage shall be in compliance with CITY policy regarding the same.

Section 4.06 – Matching Deferred Compensation Contribution. CITY will match up to $250 per month into EMPLOYEE’S deferred compensation account.

ARTICLE 5 – RETIREMENT
Section 5.01 – CalPERS. EMPLOYEE shall continue to be enrolled as a member in the California Public Employees’ Retirement System (“CalPERS”), and the CITY will pay for the employer’s portion of the contribution into the system while the EMPLOYEE shall pay the employee’s portion of the contribution.

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Section 5.02 – California Employees’ Pension Reform Act of 2013. Assembly Bill No. 340 (2012) established the California Public Employees’ Pension Reform Act of 2013 (“PEPRA”). The CITY is required to comply with the provisions of PEPRA.

Section 5.03 – Classic/Legacy Employees Under the California Employees’ Pension Reform Act of 2013. An individual hired on or after January 1, 2013, meeting the following criteria is designated as a Classic/Legacy Employee:

A. Working for an employer providing CalPERS retirement benefits who begins employment with the CITY without a break in service or a break in service of less than six (6) months; or
B. Current member of a public retirement system or plan with reciprocity with CalPERS.

EMPLOYEE, designated as a Classic/Legacy member, hired after 12/25/2010, shall be eligible for the following retirement benefits:

Provision Government Code Section
2% at 60 Formula 21353
Three Highest Years Average Compensation 20037
Pre-Retirement Optional Settlement 2 Death Benefit 21548 Service Credit for Unused Sick Leave 20965
Fourth Level of 1959 Survivor Benefit 21574
Public Service Credit for Periods of Layoff 21022
Public Service Credit for Service Rendered to a NonProfit Corporation21026 Local System Service Credit included in Basic Death
Benefit
21536
Section 5.04 – Contributions Towards Retirement.

A. Classic Tier 2 - 7% Employee Contribution. EMPLOYEE agrees to pay on a pre-tax basis the full employee CalPERS retirement contribution of seven percent (7%). It is the intent of the parties to accommodate EMPLOYEE’S desire that said sums may be deducted on a pre-tax basis as deferred income for federal and state tax purposes. The parties believe the contribution is pre-tax because the CITY has filed the CalPERS Internal Revenue Code Section 414(h)(2) resolution. However, any income tax obligation or penalties arising from such tax treatment shall be the exclusive responsibility of the employee. In the event of any adverse tax treatment for EMPLOYEE, CITY shall not be responsible; therefore, CITY has made no representation regarding such tax treatment, and EMPLOYEE shall seek such advice from EMPLOYEE’S personal tax advisors regarding such matters.

B. City Contribution. CITY agrees to pay the full employer contribution to CalPERS.

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ARTICLE 6 – HEALTH AND OTHER INSURANCE
Section 6.01 – Group Medical and Dental Insurance. The CITY contracts with the CalPERS Public Employees’ Medical and Hospital Care Act (“PEMHCA”) for medical insurance for CITY employees. The payment of premiums towards group medical/dental/life insurance will be through the administration of a flexible benefit package.

Section 6.02 - City Contribution. The CITY shall contribute toward medical and dental insurance premiums an amount equal to the monthly premiums for EMPLOYEE plus all dependents for the plan in which EMPLOYEE is enrolled subject to the provision below.

CITY’s contribution shall be based on medical and dental coverage for the EMPLOYEE and EMPLOYEE’S dependents and includes the CalPERS statutory minimum employer contribution specified in Section 22892 of PEMHCA.

CITY will make contributions to EMPLOYEE’S flexible spending account based upon coverage elected. Specifically, EMPLOYEE may select from those plans offered through CalPERS PEMHCA and PPO or HMO dental with the CITY paying for the full premiums for coverage selected for EMPLOYEE and eligible dependents.

If EMPLOYEE elects not to be covered under the medical plan provided through the cafeteria plan, EMPLOYEE shall receive the CalPERS statutory minimum employer contribution specified in Section 22892 of PEMHCA as cash wages. In order to receive the statutory minimum, proof of group health coverage elsewhere is required. However, the premiums for dental and life insurance premiums, both of which are mandatory, will be deducted from CalPERS statutory minimum employer contribution specified in Section 22892 of PEMHCA with the remainder paid to EMPLOYEE as cash wages.

Section 6.03 - Cafeteria Plan. The insurance benefits provided for in this Section will be provided through the provision of a cafeteria plan adopted in accordance with the provisions of Internal Revenue Code Section 125.

The CITY will contribute to the cafeteria plan flex dollars as specified in the City Contribution section above. The CITY’s flex dollar contribution includes the CalPERS statutory minimum paid by the CITY.

Section 6.04 - The Purchase of Optional Benefits through the Cafeteria Plan. The cafeteria plan offers EMPLOYEE the opportunity to purchase optional medical insurance and AFLAC insurance. Eligible employees may select from any of the medical insurance plans offered by CalPERS. If CalPERS changes any of the medical insurance plans by either adding or deleting the plan options, employees will be limited to those plan options offered by CalPERS.

EMPLOYEE may also elect any of the optional insurance options the CITY offers to employees at EMPLOYEE'S sole cost.

Section 6.05 - Designate Medical Waiver Flex Dollars towards the Employee’s Contribution towards Deferred Compensation. EMPLOYEE may designate flex dollars, available after deductions for premiums for elected benefit options, towards EMPLOYEE'S

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deferred compensation plan. Using cafeteria plan flex dollars towards deferred compensation contributions is binding for the entire calendar year and subject to Medicare taxes.

Section 6.06 - The Receipt of Cash through the Cafeteria Plan. EMPLOYEE will be eligible to receive cash (subject to taxation as wages) through the cafeteria plan if s/he opts out of receiving medical insurance in accordance with Section 6.02.

Section 6.07 – Term Life Insurance. The CITY shall provide EMPLOYEE with a term life insurance policy equal to $500,000 and shall pay the full cost of the life insurance premium.

No life insurance policy shall be provided after retirement.

Section 6.08 – Long-Term Disability Insurance. The CITY shall maintain in effect and pay the full premium on behalf of EMPLOYEE for a long-term disability insurance premium at two-thirds (2/3) of the existing salary, up to a maximum of $13,333 benefit per month.

EMPLOYEE shall be entitled to any benefits paid by such insurance.

A. Eligibility. EMPLOYEE's eligibility for long-term disability benefits depends on whether or not EMPLOYEE'S disability is industrial or non-industrial in nature. If the disability is industrially related, EMPLOYEE'S eligibility for long-term disability benefits begins on the sixty-first (61st) calendar day of continuous absence from work.

If EMPLOYEE'S disability is not industrially related, EMPLOYEE'S eligibility begins either on the sixty-first (61st) calendar day of the EMPLOYEE'S absence from work, or upon expiration of the EMPLOYEE'S sick leave, whichever period is longer.

B. Benefits. EMPLOYEE, who is eligible to receive long-term disability benefits, will receive two-thirds (2/3) of existing salary as of the date disability began less any deductible benefits, as provided for in the long-term disability policy.

1. EMPLOYEE who is receiving long-term disability benefits is considered in an offpayroll status, and will not accrue benefits during the time that EMPLOYEE is in such status. In addition, EMPLOYEE who is in an off-payroll status while receiving longterm disability benefits is responsible for maintaining group health insurance coverage and for paying premiums therefore.

2. Such long-term disability benefits are in lieu of all other CITY-provided compensation, such as Workers’ Compensation benefits or disability retirement benefits and shall not be paid in addition to those other benefits.

Section 6.09 – Additional Flexible Spending Account. The CITY shall provide a voluntary Flexible Spending Plan (Section 125 Plan under the Internal Revenue Code) to EMPLOYEE'S. Enrollment in the plan allows employees to pay for out-of-pocket Health Care and Dependent Care costs with pre-tax dollars. Flexible Spending Account limits will be set by the City prior to open enrollment so that it does not exceed the Internal Revenue Service (IRS) limits.

At enrollment, and annually thereafter, participants must designate during open enrollment

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the Flexible Spending Account election amount for the remainder of the year for new hires and for the next year for current employees. The annual amount is deducted from EMPLOYEE'S paycheck in equal installments, on a pre-tax basis, and credited to EMPLOYEE'S Flexible Spending Account. Reimbursement will be paid directly by a thirdparty administrator.

Federal law prohibits any change in a Flexible Spending Account during the calendar year unless the EMPLOYEE or EMPLOYEE'S dependent(s) have a qualifying “life event.” A qualifying “life event” is marriage, divorce or legal separation, birth or adoption of a dependent, death of a dependent, or a change in the EMPLOYEE or EMPLOYEE'S spouse’s employment status. The change in the Flexible Spending Account must be due to and consistent with the “life event” which permits the change.

An annual open enrollment period will be provided for the upcoming year’s program.

EMPLOYEE must affirmatively enroll in the Flexible Spending Account for each year. There is no automatic renewal.

When estimating annual expenses, EMPLOYEE is cautioned to only consider those expenses EMPLOYEE is reasonably certain s/he will incur. CITY’s plan document will define all limits, terms, and conditions of the plan.

Deductions for Flexible Spending Accounts shall not reduce earnable compensation for purposes of calculating benefits or contributions for CalPERS.

The CITY maintains the right to select and change, if needed, the vendor to administer the Flexible Spending Account program.

Section 6.10 – Wellness/Fitness Reimbursement: EMPLOYEE shall receive $500 per fiscal year wellness/fitness reimbursement with proof of membership/purchase/services.

ARTICLE 7 - MEDICAL AND DENTAL INSURANCE FOR RETIREES
Section 7.01 – City Contributions towards Premiums. Upon retirement directly from active duty, the CITY will pay the contributions as noted in Section 7.03 if the eligibility criteria in Section 7.02 are met.

Section 7.02 – Eligibility Criteria. EMPLOYEE will be eligible for CITY contributions towards retiree health insurance defined by CalPERS, and as specified in Section 7.03, if the following eligibility criteria are met:

1. Is at least fifty (50) years of age for Miscellaneous Classic and Safety members; Miscellaneous PEPRA members must be at least fifty-two (52) years of age;

2. Has been employed by the City for at least five (5) years;

3. Is a vested member of CalPERS;

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4. Has applied for and received a retirement allowance from CalPERS;

5. Must retire within 120 days from separation from the CITY and be eligible for coverage at separation;

6. Any lapse in coverage will make EMPLOYEE ineligible for participation in the dental program.

Section 7.03 – City Contribution. Only while participating in the CalPERS medical plan will the CITY pay the minimum employer contribution specified in Section 22892 of PEMHCA to CalPERS. EMPLOYEE is responsible for all dental premiums at retirement.

Section 7.04 – Retiree (City Manager) Medicare Coverage EMPLOYEE, if eligible, enrolls at EMPLOYEE’S own expense for Medicare coverage.

Retirees will be solely responsible for paying any Medicare premiums/charges and any applicable taxes resulting from these benefits.

ARTICLE 8 - LEAVES
Section 8.01 – Holidays. EMPLOYEE shall be entitled to eleven (11) paid holidays per calendar year. The eleven (11) paid holidays to which EMPLOYEE is entitled shall be as follows:

New Year's Day
Martin Luther King, Jr. Day
President’s Day
Memorial Day
Independence Day
Labor Day
Veterans' Day
Thanksgiving and the day after Thanksgiving
Christmas
"Floating Holiday"
The exact date upon which each of the above holidays will be observed and during which City Hall will be closed shall be set by Administrative Regulation each year. Holidays will be paid at the full workday rate.

Floating Holiday. The "floating holiday" may be taken at any time during the year. The “floating holiday” must be used during the calendar year and may not be carried over from one (1) year to the next. An employee who separates from employment may not be compensated for any unused holiday.

Section 8.02 - Vacation Accrual. EMPLOYEE shall accrue vacation time at the rate specified in the table below. For purposes of calculating vacation leave accrual, EMPLOYEE’s years of service shall include all EMPLOYEE’s years of service as a full time employee of the CITY.

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Years of Service Hours Per Year Hours Per Payroll Period 0 to 5 years 120 4.62
Years 6 - 8 136 5.23
Years 9 - 10 144 5.54
Years 11 - 12 152 5.85
Years 13 - 14 160 6.15
Years 15 and over 200 7.69
Upon appointment, EMPLOYEE will retain EMPLOYEE’S existing bank of accrued vacation hours.

A. Eligibility to Use Vacation: EMPLOYEE shall check with the Mayor before taking vacation in the first six months of serving as City Manager, provided that EMPLOYEE shall be able to take vacations that were pre-arranged prior to the effective date of this AGREEMENT.

B. Maximum Vacation Accrual: EMPLOYEE may accrue up to two hundred forty (240) hours of vacation and, with the City Council’s approval, may exceed two hundred forty (240) hours for business necessity.

C. Annual Vacation Payoff: Annually, an employee who uses forty (40) hours of vacation in a calendar year and maintains an accrual of twenty (20) hours (after vacation buy-back) may request the CITY buy-back a maximum of eighty (80) hours of vacation. EMPLOYEE will be required to submit a written request to Human Resources by a designated date in November of each year with buy-back paid during the first payroll period in December of the following year.

D. Annual Sweep of Vacation Hours in Excess of 240 Hours: Annually, effective on the first payroll period in February, should EMPLOYEE’s vacation accrual exceed the maximum vacation accrual specified above, the sum above the maximum will be swept into a qualifying plan such as a 457 or 401(A) account for EMPLOYEE. The hours exceeding the maximum will be cashed out and deposited into EMPLOYEE’s account.

E. Vacation Accrual at Separation: At separation, the monetary value of EMPLOYEE’s accrued, unused vacation time will be cashed out and paid to EMPLOYEE.

Section 8.03 – Administrative Leave. The CITY agrees to provide EMPLOYEE with one (1) workday per month up to a maximum of twelve (12) workdays per calendar year of administrative leave to be used at EMPLOYEE'S discretion, subject to the needs of the organization. Said leave shall not accrue from year to year, and there is no right to be paid for any balance at the time of separation from employment with CITY. EMPLOYEE shall have the option to bank a maximum of two (2) days of administrative leave annually. Upon appointment, EMPLOYEE shall retain existing accrued administrative leave and shall accrue the difference in hours available to the City Manager.

Section 8.04 – Sick Leave Accrual Rate. EMPLOYEE shall accrue sick leave at the rate of 3.69 hours per bi-weekly pay period (one (1) eight (8) hour day per month).

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Upon appointment, EMPLOYEE shall retain existing accrued sick leave and shall begin accruing sick leave at the current rate thereafter.

In accordance with California Labor Code section 245 et seq., should EMPLOYEE separate from employment with the City of Fountain Valley, and then return to CITY employment within one (1) year from the date of separation, EMPLOYEE'S accrued, unused sick leave hours at the time of separation after any sick leave payoff if any, shall be reinstated upon re-hire.

Section 8.05 - Sick Leave Usage. The first three (3) days or work hours equivalent (e.g., 30 hours for employees on a 4/10 schedule) of paid sick leave taken each 12-month period will be considered sick leave used pursuant to the Healthy Workplaces, Healthy Families Act of 2014 (California Labor Code sections 245-249). The 12-month period is July 1 through June 30.

A. EMPLOYEE can use sick leave for EMPLOYEE'S preventative care (such as physical exams) or care of an existing health condition;
B. EMPLOYEE can use up to a maximum of one-half of one year’s annual accrued sick leave (e.g., 60 hours for employees on a 4/10 work schedule) per year for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee's child, parent, spouse or registered domestic partner. The first three days (or work hours equivalent) of sick leave an employee uses in a 12-month period can also be used for the diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee's sibling, parents-in-law, grandparent or grandchild. Sick leave usage for family illness is separate from Family Care and Medical Leave, the provisions of which are included in Administrative Regulation No. 1050; however, sick leave usage for family illness may run concurrently with Family Care and Medical Leave; or C. EMPLOYEE can use sick leave for specified purposes if a victim of domestic violence, sexual assault or stalking as set forth in California Labor Code section 230(f) and 230.1(a).

Section 8.06 - Sick Leave Payoff. Upon completion of ten (10) years of continuous service with the CITY, if EMPLOYEE separates from the CITY for any reason other than termination for cause, EMPLOYEE shall be paid twenty-five percent (25%) of the present salary value of the accrued, unused sick leave balance at the time of separation. In the event of death at any time during employment with the CITY, twenty-five percent (25%) of the EMPLOYEE'S accrued, unused sick leave will be paid to EMPLOYEE'S estate. Contributions to CalPERS shall not be made on any payoff for accrued, unused sick leave.

Section 8.07 - Retirement Credit for Unused Sick Leave. Pursuant to Government Code Section 20965 and the CITY’s contract with CalPERS, the EMPLOYEE who retires from the CITY may receive service credit towards EMPLOYEE'S retirement for all accrued, unused sick leave for which EMPLOYEE does not receive compensation. This provision shall apply only to an employee whose effective date of retirement is within four (4) months of separation from employment with the CITY.

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Section 8.08 – Bereavement Leave. EMPLOYEE shall be entitled to a maximum of three (3) working days absence with pay, as Bereavement Leave, when EMPLOYEE is compelled to be absent from duty by reason of death of an immediate family member, or in the event of critical illness where death appears to be imminent. For purposes of bereavement leave, “immediate family member” refers to spouse, child, stepchild, grandchild, brother, sister, parent, step-parents, mother-in-law, father-in-law, grandparents, or legal guardian.

Section 8.09 – Industrial Injury Leave. EMPLOYEE shall be entitled to a maximum of ninety (90) calendar days of industrial injury leave at full salary and benefits in lieu of temporary disability benefits. EMPLOYEE who is absent from work for longer than ninety (90) calendar days due to industrial illness or injury will receive those benefits provided for in the Workers’ Compensation Law, as well as, any long-term disability benefits to which he may be entitled. EMPLOYEE will also be permitted, after exhaustion of the ninety (90) days industrial injury leave, to use accrued sick leave to supplement EMPLOYEE'S Workers’ Compensation benefits. In no case will EMPLOYEE be permitted to receive more than EMPLOYEE'S regular pay.

ARTICLE 9 – EXPENSES
In addition to the other compensation provided to EMPLOYEE, CITY agrees to reimburse EMPLOYEE'S reasonable expenses incurred in connection with EMPLOYEE'S duties and professional development related to EMPLOYEE'S CITY employment. Said expenses shall include, but not be limited to, those incurred in participation in educational programs and professional organizations, travel, lodging and attendance at seminars and conferences, dues, and related expenses. The amount available shall be subject to budget limitations.

EMPLOYEE may be provided with a credit card or cash advances for such purposes.

EMPLOYEE shall provide the Mayor and City Council with a brief accounting of all such expenses within thirty (30) days of being incurred.

ARTICLE 10 – HEIRS AND ASSIGNS
Any benefits due EMPLOYEE hereunder shall inure to the benefit of EMPLOYEE'S heirs, successors and assigns when appropriate.

ARTICLE 11 – SEPARATION
Section 11.01 – Resignation. EMPLOYEE may resign at any time, but shall give the CITY at least thirty (30) calendar days advance notice of the effective date of EMPLOYEE'S resignation, unless the parties otherwise agree in writing.

Section 11.02 – Termination Without Cause. EMPLOYEE is an at-will employee serving at the pleasure of the City Council as provided in Section 2.16.010 of the Fountain Valley Municipal Code.

The City Council may terminate EMPLOYEE'S appointment without cause and remove the EMPLOYEE at any time. As used in this Section, “termination” shall include actual termination, a request that the EMPLOYEE resign or the elimination of the City Manager position. Notice of termination shall be provided to EMPLOYEE in writing.

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If terminated without cause, the CITY shall extend to EMPLOYEE the right to continue health insurance at the EMPLOYEE'S sole expense in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”). EMPLOYEE will also be entitled to payment for all unused vacation. EMPLOYEE may be eligible for payment for twenty-five percent (25%) of EMPLOYEE'S accrued, unused sick leave if EMPLOYEE has completed ten (10) years of continuous service with the CITY at the time of termination.

In the event the City Council determines to terminate EMPLOYEE'S employment under this AGREEMENT without cause, then CITY shall pay to EMPLOYEE six (6) months base salary as severance in an amount equal to her monthly base salary then in effect multiplied by six (6), less applicable deductions and excluding deferred compensation or the value of any other benefits. Such severance shall be paid to EMPLOYEE in a lump sum payment within 30 days of EMPLOYEE’s separation. No severance pay will be provided if EMPLOYEE'S employment is discontinued because of EMPLOYEE'S conviction of a felony or of any illegal act involving personal gain to EMPLOYEE, or because of malfeasance of office. Benefits shall not accrue on said sums whether paid in a lump sum or monthly.

Section 11.03 – Termination for Cause. The City Council may terminate EMPLOYEE at any time, for cause. As used in this AGREEMENT, “cause” shall mean any of the following:

A. Conviction of a felony or a crime involving moral turpitude that adversely affects the CITY’s or the EMPLOYEE'S reputation; or
B. Conviction of a misdemeanor arising out of the EMPLOYEE'S duties or performance under this AGREEMENT; or
C. Misappropriation of public funds; or
D. Willful abandonment of duties consisting of the failure to report to work for five (5) consecutive working days (for reasons not medically related) and not notifying staff and the City Council of EMPLOYEE'S status; or
E. A willful and intentional failure to carry out materially significant and legally constituted policy decisions of the City Council made by the City Council; or F. Willful destruction or misuse of CITY property; or
G. Willful violation of the federal, state, or CITY discrimination laws concerning race, religious creed, color, national origin, ancestry, physical handicap, marital status, sex, or age concerning either members of the general public or CITY employee(s) while acting in the course and scope of employment and while acting without the prior approval or direction of the City Council; or
H. Any other intentional or grossly negligent action or inaction by EMPLOYEE that: 1) materially and substantially impedes or disrupts the operations of the CITY or its organizational units; 2) is detrimental to employees or public safety; 3) violates properly established rules or procedures of the CITY causing a material and substantial adverse

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impact on the CITY; or 4) has a material and substantial adverse effect on the CITY’s interests as clearly defined and delineated by properly established City Council action, policy, regulations, ordinances, or City Code provisions.

Notice of Termination for Cause shall be provided to the EMPLOYEE in writing and shall set forth the facts and grounds constituting such cause for removal.

If terminated for cause, the CITY shall extend to EMPLOYEE the right to continue health insurance at the EMPLOYEE'S sole expense in accordance with COBRA. EMPLOYEE will also be entitled to payment for compensation accrued up to the date of termination for cause including payment for unused accrued vacation. EMPLOYEE will not be entitled to payment of any sick leave nor any other pays including severance pay.

Section 11.04 – Reimbursement After Conviction of Abuse of Office. In accordance with Government Code Section 53243.2, if any cash settlement is paid as a result of termination of this AGREEMENT, the money paid shall be fully reimbursed to the CITY if EMPLOYEE is convicted of a crime involving abuse of office or position.

ARTICLE 12 – INDEMNIFICATION
City shall defend, hold harmless, and indemnify EMPLOYEE when required by the California Government Code or at any other time Council determines to do the same.

ARTICLE 13 – SEVERABILITY
If any provision of this AGREEMENT is found to be unlawful by a court of law, the parties intend that any remaining provision that may stand on its own shall be enforceable.

ARTICLE 14 – CONFLICT OF INTEREST
EMPLOYEE shall not engage in any business or transaction, or have a financial or other personal interest or association, direct or indirect, which is in conflict with the proper discharge of EMPLOYEE'S official duties or which would tend to impair the independence of EMPLOYEE'S judgment or action in the performance of his official duties. EMPLOYEE shall also be subject to the conflict of interest provisions of the California Government Code and any conflict of interest codes applicable to the EMPLOYEE'S employment with the CITY.

ARTICLE 15 – CONFIDENTIALITY
EMPLOYEE acknowledges that in the course of EMPLOYEE'S employment, EMPLOYEE will be given or will have access to confidential and proprietary documents and information relating to the CITY, its residents, businesses, employees, and customers. Such confidential information may include, but is not limited to, all information given to or otherwise accessible to EMPLOYEE that is not public information or would be exempt from public disclosure as confidential, protected, exempt, or privileged information. EMPLOYEE shall hold the confidential information in trust for the CITY’s benefit and shall not disclose such information to others without the express written consent of the CITY. All confidential information shall

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Maggie Le-Nguyen Employment Agreement Effective: June 11, 2022 09999.0009/794626.8 - 17 -
be promptly returned to the CITY immediately upon the effective date of any termination or resignation.

ARTICLE 16 – NOTICES
Any notice required by this AGREEMENT shall be in writing and shall be either given in person or by first class mail with the postage prepaid, addressed as follows:

To CITY: City Council of the City of Fountain Valley
Attention: Mayor
10200 Slater Avenue
Fountain Valley, California 92708
To CITY MANAGER: Maggie Le-Nguyen
City Manager
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, California 92708
ARTICLE 17 – ENTIRE AGREEMENT
This AGREEMENT supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the employment of EMPLOYEE by CITY and contains all of the covenants and agreements between the parties with respect to that employment in any manner whatsoever. Each party to this AGREEMENT acknowledges that no representation, inducement, promise, or agreement, orally or otherwise, have been made by any party or anyone acting on behalf of any party, which is not embodied herein and that no other agreement, statement, or promise not contained in this AGREEMENT shall be valid or binding on either party.

ARTICLE 18 – MODIFICATION
This AGREEMENT may only be modified in writing by the parties except to the extent that a resolution may establish or modify a benefit not otherwise specifically provided for in this AGREEMENT.

ARTICLE 19 - CITY MANAGER’S INDEPENDENT REVIEW
EMPLOYEE acknowledges that EMPLOYEE has had the opportunity and has conducted an independent review of the financial and legal effects of this AGREEMENT and has not relied upon representation of the CITY, its elected or appointed officers and officials, agents or employees other than those expressly set forth in this AGREEMENT. EMPLOYEE acknowledges that EMPLOYEE has been advised to obtain and EMPLOYEE has availed himself/herself of legal advice with respect to the terms and provisions of this AGREEMENT. ///
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Maggie Le-Nguyen Employment Agreement Effective: June 11, 2022 09999.0009/794626.8 - 18 -
ARTICLE 20 – STATE LAW
The rights and obligations of the parties to this AGREEMENT shall be governed by the laws of the State of California.

ARTICLE 21 – EFFECT OF WAIVER
The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this AGREEMENT by the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.

ARTICLE 22 – MANDATORY GOVERNMENT CODE PROVISIONS
Government Code §§ 53243 - 53243.4 require that contracts between local agencies and its employees include provisions requiring an employee who is convicted of a crime involving an abuse of his office or position to provide reimbursement to the local agency for the following forms of payment: (i) paid leave salary; (ii) criminal defense costs; (iii) cash settlement payments; and (iv) any non-contractual settlement payments. Accordingly, the parties agree that it is their mutual intent to fully comply with these Government Code sections and all other applicable law as it exists as of the date of execution of this AGREEMENT and as such laws may be amended from time to time thereafter.

Specifically, the following Government Code sections are called out and hereby incorporated by this AGREEMENT:
§53243. Reimbursement of paid leave salary required upon conviction of crime involving office or position.
§53243.1. Reimbursement of legal criminal defense upon conviction of crime involving office or position.
§53243.2. Reimbursement of cash settlement upon conviction of crime involving office or position.
§53243.3. Reimbursement of noncontractual payments upon conviction or crime involving office or position.
§53243.4. "Abuse of office or position" defined.

EMPLOYEE represents that she has reviewed, is familiar with, and agrees to comply fully with each of these provisions if any of these provisions are applicable to EMPLOYEE, including that EMPLOYEE agrees that any cash settlement or severance related to a termination that EMPLOYEE may receive from the City shall be fully reimbursed to the local agency if EMPLOYEE is convicted of a crime involving an abuse of EMPLOYEE's office or position.
///
///
///
///
///

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Maggie Le-Nguyen Employment Agreement Effective: June 11, 2022 09999.0009/794626.8 - 19 -
IN WITNESS WHEREOF, the parties have executed this AGREEMENT on June 7, 2022.

The effective start date for employment as City Manager shall be June 11, 2022.

Employee
Dated: _______________________ _________________________________ Maggie Le-Nguyen
City of Fountain Valley
Dated: _______________________ _________________________________ Mayor
ATTEST:
_____________________________
City Clerk Administrator

APPROVED AS TO FORM

HARPER & BURNS LLP
_____________________________
Colin Burns
Attorneys for the City

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CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 7, 2022
Members of the City Council
SUBJECT: Resolution Adopting the FY 2022-23 Annual Operating Budget & Ten-Year Capital Improvement Program (Adoption of the ten-year Capital Improvement Plan consistent with Measure M2 Eligibility process), and Financial, Budget & Debt Policies and; Resolution Adopting the FY 2022-23 GANN Appropriations Limit and; Resolution establishing the FY 2022-23 Annual Schedule of Property Rental and Administrative Service Charges to the Municipal Water & Sewer Utility Funds
EXECUTIVE SUMMARY:

The City Manager must present a balanced budget for consideration by the City Council prior to the beginning of the fiscal year, with a balanced budget defined as operating revenues equal to or greater than operating expenditures, including any debt service obligations. The Proposed FY 2022/23 Annual Operating Budget and Capital Improvement Program is balanced, and supports or enhances the needs of departments citywide, providing the resources necessary to continue to provide high quality public service, maintain and enhance the City’s infrastructure and continue to pay down unfunded actuarial liabilities in accordance with the Measure HH Responsible Spending Plan.

DISCUSSION:

On May 17, 2022, the City Council held a budget workshop to review and discuss the Proposed FY 2022-23 Annual Operating Budget and Capital Improvement Program. The purpose of the workshop was to allow for questions on both specific programs and capital projects within the budget as well as a more general overview of the City’s finances. The budget workshop was followed by a Measure HH Oversight Committee meeting on June 2, 2022 at which the Measure HH Oversight Committee reviewed the proposed use of Measure HH funds within the FY 2022- 23 proposed budget, and that such expenditures within the proposed budget are consistent with the intent of the Measure HH ballot measure and Responsible Spending Pledge.

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FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

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The budget is continually reviewed for adherence to the City’s long-term 20-year long range financial forecasting plan, preservation of the City’s financial integrity, and proper implementation of the City’s Strategic Plan initiatives.

Finance staff has reviewed and analyzed revenue and cost estimates based on updated information, and the FY 2022-23 proposed budget includes proposed changes resulting from updated revenue and expenditure projections, in order to enhance the City’s performance in providing public benefits in accordance with the City’s Strategic Plan.

The proposed FY 2022-23 looks to maintain current service levels and expand on the City’s strategic plan goals while enabling the City to continue to help the community return to normal post-pandemic by continuing to enhance the community’s quality of life and safety, while maintaining a conservative outlook for revenue and expenditure growth based on changing economic factors. Citywide, the total budget is $126.8 million, an increase of 10.4% over the adopted FY 2022-23 budget. These expenses are supported by $112.8 million in revenue, an increase of 1.9% percent from the current fiscal year (excluding ARPA funding of $7.9 million), and use of one-time capital improvement reserve funding. These total figures reflect revenues and expenses for all funds citywide including the General Fund, Enterprise Funds, Internal Service Funds, Debt Service Funds and Special Revenue Funds. The Proposed Budget also includes Internal Service Funds whose totals are not included in the $126.8 million.

Enterprise Funds are proprietary funds supported by user fees and charges. The rates charged to customers for these services cover the costs of operation, maintenance and capital and infrastructure improvements. The City maintains several Enterprise Funds including Water, Sewer, and Solid Waste. Expenditures for FY 2022-23 for these funds are proposed to be $31.1 million for both operating and capital expenses.

Internal Service Funds, including information technology, government buildings, capital equipment, employee benefits, self-insurance and fleet services account for activities provided to one City department by another City department. The Proposed FY 2022-23 budget includes $36.8 million in funding for these funds.

Debt Service Funds are used to account for debt service expenditures on general long-term debt.

The City currently has four outstanding debt obligations; the 2014 Revenue Bonds, 2016A Lease Revenue Bonds, 2015A Pension Obligation Bonds and the Clean Energy Renewable Bonds (CREBS). Payments for citywide debt is $3.4 million for FY 2022-23.

Special Revenue Funds are funds legally restricted to a specific purpose. Examples of Special Revenue Funds include the Gas Tax Fund and the Community Development Block Grant (CDBG). In total, expenses in Special Revenue Funds are proposed to be $17 million for FY 2022-23, including capital improvement projects.

The General Fund

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June 7, 2022

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The General Fund is the primary operating fund of the City and supports fundamental services including Police, Fire, Community Development, Community Services and general administration. Revenue for this fund comes from general taxes such as property tax, sales tax, Measure HH, transient occupancy taxes as well as a variety of user and permit fees and other smaller sources. The Proposed Budget for FY 2022-23 for the General Fund is $70.1 million in expenses and $73.3 million in revenue, with an additional $9.6 million for one-time capital projects.

General Fund Expenditure Highlights
General Fund expenditures are broken into two distinct types - operating and capital. Operating expenses are those required to support the day-to-day operations of the City including personnel expenses, professional services, maintenance expenses and the purchase of needed equipment and are supported by revenue generated in the fiscal year the expenses occur.

Capital expenses are one-time expenditures that are funded through the capital reserves, where funds have been set aside from savings over multiple fiscal years and/or one-time funding sources such as reimbursements and development agreements.

The proposed FY 2022-23 General Fund Budget includes $70.1 million in expenses and $9.6 million in capital expenditures for the General Fund. In addition, $3.0 million in additional payments to CalPERS to pay down the City’s unfunded actuarial liability (UAL) is included in the Proposed Budget in accordance with the Measure HH Responsible Spending Pledge.

The proposed FY 2022-23 General Fund budget includes $53.8 million in operating expenses across all departments.

Proposed General Fund budgets for the respective departments are listed below:

Department FY 23 Proposed FY 22 Revised Variance
ADMINISTRATION 1,812,296 1,755,119 57,177
HUMAN RESOURCES 1,441,091 1,004,779 436,312
COMMUNITY DEVELOPMENT 2,090,989 1,822,316 268,673
FINANCE 2,132,626 1,410,868 721,758
PUBLIC WORKS 9,280,656 7,792,980 1,487,676
FIRE 14,292,600 13,333,152 959,448
POLICE 19,503,887 17,000,116 2,503,771
RECREATION & COMMUNITY SVCS 3,288,781 2,892,091 396,690 Grand Total 53,842,926 47,011,421 6,831,505
Major increases to General Fund department expenditures include the full eighteen-month incremental cost of the classification and compensation study among all bargaining units, existing MOU increases including a 3% COLA among all units in July of 2022, and operating increases including contractual increases for existing contracts, adjustments for inflation, and

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June 7, 2022

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full year funding for new city contracts, including the City’s new homeless outreach initiative contract. Other operating increases include contractual increases for utilities such as electricity for streetlights, inflationary increases for diesel & gasoline for the City’s fleet, and contractual increases relating to water supply and landscape maintenance for our City’s parks and medians/right of ways, crossing guard services, and CARE Ambulance contracts.

General Fund Revenue Highlights
Property Tax revenue in FY 2022-23 is projected to be $22,983,888, an increase of $1,065,288 over FY 2021-22. Increases in property tax are due to a combination of property turnover and resulting reassessments and the two percent per year inflation factor for property assessments allowable under Proposition 13.

Sales Tax, including Measure HH is projected to increase by approximately 4% in FY 2022-23 from the revised FY 2021-22 budget and totals approximately $31.7 million. Sales tax remained stable in FY 2022-23, attributable to a combination of sales derived from new businesses within the community, inflation and the impact of the South Dakota vs. Wayfair case. The Wayfair case was decided by the Supreme Court in 2018, and was implemented in California in April 2019.

The case, and subsequent state legislation, requires online retail sellers to collect and remit sales tax on taxable sales shipped into the state. Revenue from the tax is then allocated to a countywide pool based on the point of delivery of the product purchased. As online shopping has surged in popularity both before and during the pandemic, the City’s portion of the countywide pool has increased 14.5% year over year as of the quarter ending December 2021.

Transient occupancy tax (TOT), otherwise known as “the bed tax” is tax paid by visitors staying overnight in one of our local hotels. Revenue from TOT was lower in previous fiscal years due to the pandemic, however not as low as originally feared given the many pandemic related travel restrictions. As travel restrictions continue to ease and as COVID variants remain contained, the proposed budget assumes $1.4 million in TOT revenue, 12% higher than the FY 2021-22 adopted budget.

General Fund Functional Revenues are those revenues derived from services and activities provided by the various departments such as plan checking, facility rentals, business license fees, EMS response fees and alarm permits. Functional revenues are projected to total $8,007,487 in FY 2022-23, an increase of $64 thousand from FY 2022-23.

Significant Changes
The proposed FY 2022-23 budget further enhances the City’s strategic plan goals of achieving fiscal stability in accordance with the 20-year financial forecasting plan while targeting surplus resources to key strategic planning initiatives. The current year proposed budget continues to fully fund all City operations, including the full eighteen-month impact of the recent classification and compensation study for all City bargaining units, including Police and Fire, furthering the Council’s strategic goal of attracting and retaining quality staff. The budget also includes contract services for the City’s homeless outreach initiatives, including contracting with a professional services contractor for community outreach and case management services, which will provide assistance with programs such as emergency housing, mental and health care, benefits counseling and a variety of other community based programs and services.

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FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

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As previously mentioned, the proposed budget includes $3.0 million in additional payments to CalPERS to help pay down the City’s unfunded actuarial liability (UAL). The City’s current unfunded actuarial liability is approximately $69.1 million, exclusive of assets held in the City’s 115 pension trust. The City is committed to paying down this debt as quickly as possible by making payments in addition to the normal and amortized UAL costs mandated by CalPERS.

Doing so will save a significant amount in interest over the 20-year amortization period and complies with one of the primary goals of Measure HH to “pay down unfunded liabilities”.

Staffing
The proposed fiscal year 2022-23 budget includes 238.75 authorized full-time equivalent (FTE) positions, reflecting a net increase of increase of four (4.25) positions from the prior fiscal year.

Half of the new positions are to be funded by General Fund, whereas the remaining two positions would be funded 75% from the Enterprise Funds.

The proposed Code Enforcement Officer for the Community Development department would add weekend inspections for code enforcement to enforce all Fountain Valley Municipal Codes and State of California codes.

The proposed Management Analyst for the Finance Department would add critical analytical support in the areas of Accounting, Purchasing, Budgeting, and compliance with regulatory financial reporting requirements. This position would also assist the City in implementing the full roll out the City’s robust new ERP system, including implementing the new Human Capital Management and Utility Billing modules.

The proposed budget also includes an additional Assistant Engineer and Management Aide funded twenty percent from the General Fund. These new positions will assist the Public Works department with various duties, including managing the City’s expanding capital improvement project program, increased plan check and permit work, regulatory reporting requirements, contract management, invoice processing, and the City’s water conservation effort.

Other proposed reclasses would include changes to HR classifications to handle higher level duties relating to worker’s compensation, FMLA, Benefits Administration, Employee Relations, Labor Law Compliance, and Recruitment and Selection oversight.

Capital Improvement Program
The City’s Capital Improvement Program (CIP) identifies major public improvements to the City’s infrastructure over the next ten years and includes new projects, upgrades to existing facilities as well as rehabilitation of streets and roadways. Funding for projects scheduled for FY 2022-23 are included in the proposed budget, with the majority of the scheduled projects funded by the General Fund Capital Reserve, the Water and Sewer Funds, Gas Tax, Measure M2, grants and other reimbursements. The proposed CIP for FY 2022-23 includes 47 projects for a combined total of $24.5 million, and is consistent with the seven year CIP program submitted to the Orange County Transportation Authority (OCTA) as part of the annual Measure M2 Eligibility process.

Major projects scheduled include: design work for the complete rebuild of Fire Station No. 1, residential road rehabilitation, the renovation of the Police Department locker rooms to meet the changing needs of the department and allow for increased gender diversity, traffic signal

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June 7, 2022

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synchronization on several arterial streets citywide, as well as continued partnership with the Orange County Transportation Authority (OCTA) for the I-405 project.

Measure HH and the 20-Year Financial Plan
On November 8, 2016, the residents of Fountain Valley approved Measure HH, a one-percent transactions and use (i.e. “sales”) tax. The use of Measure HH funds is guided by the City’s Responsible Spending Pledge (see appendix) and the 20-Year Financial Plan, where the goal is to pay off debt and eliminate the structural deficit projected when Measure HH sunsets in 2037.

The Proposed FY 2022-23 Budget allocates $16,153,000 in Measure HH revenues for the following: $12.778 million in Measure HH funding to support essential city services such as public safety and senior and youth programs and the $3.0 million additional UAL payment to CalPERS.

In addition, $375,000 in Measure HH funds is allocated for residential road rehabilitation.

The City’s 20-year Financial Plan is a dynamic document that enables city leaders to forecast the impact of various financial decisions such as labor agreements, new development, capital projects, and fluctuations in the economy, on city finances over the long-term. This 20-year focus ensures the City’s financial sustainability by understanding how short term decisions can have a substantial impact on the structural deficit/surplus when Measure HH sunsets in 2037.

This 20-year Financial Plan is updated twice yearly, at budget preparation and as part of the mid-year budget review. The current update reflects an operating deficit of approximately $2 million when Measure HH sunsets; this result means the model is working and doing its job of forecasting potential strains on the City’s General Fund in future years. This information enables the City to be proactive in obtaining new revenue sources and exercising fiscal constraint in order to have the City revert back to a projected structural surplus when Measure sunsets. This forecasting tool will continue to be closely monitored for any future changes. Even with this new information, the 20 Year forecast still includes the successful retirement of all debt, funding of the CalPERS unfunded actuarial liability (UAL), and the devotion of significant resources to improving and maintaining the City’s facilities and infrastructure by the time Measure HH sunsets.

General Fund Reserves
The City maintains a number of reserves to protect the City in the event of unforeseen circumstances and maintain fiscal stability over the long-term. Projected reserve details and estimates at the end of FY 2022-23 are outlined below.

Pension Reserves– $13,888,570
The City has established a Section 115 Pension Trust Fund to set aside pension reserves in an irrevocable trust fund. The Pension Trust Fund may be used to offset volatility in pension contributions. In Fiscal Year 2017/18, the City funded the Pension Trust with an initial contribution of $2.8 million. The City contributed an additional $3.0 million in FY2019/20 respectively. The projected balance at June 30, 2021 is $13,888,570 which includes estimated investment earnings.

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FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

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Emergency Reserves – $17,601,655
The reserve for emergencies shall be maintained at $17.6 million unless the City Council declares an emergency for natural disasters or financial emergencies. A financial emergency is considered when annual General Fund operating revenues decrease by 5% or more or when annual General Fund operating expenditures increase by 5% of more. The targeted reserve level of $17.6 million equates to approximately 55% of total sales tax revenue (inclusive of Measure HH) and is reviewed annually. This reserve addresses a number of risk factors including natural disasters, budget stabilization, revenue source stability, expenditure volatility and liquidity.

Economic Development Reserves – $1,397,161
One of the City’s 3-Year Strategic Plan Goals is to enhance economic development. In 2014, $2.5 million was set-aside for Economic Development. $1,000,000 has been budgeted in Fiscal Year 2019/20 to be spent on the General Plan update, which is currently underway. The available unappropriated balance for Economic Development Reserves is $1,397,161.

General Fund Capital Reserves – $28,300,577
The City has significant capital improvement expenditures that can be funded on a pay-go basis without the issuance of debt. Specific projects will continue to be identified by staff and may be presented to the City Council during the budget process or throughout the year as capital needs arise. The estimated reserve balance at June 30, 2023 is $28,300,577.

Contingency Reserves – $500,000
Contingency reserves includes spendable amounts not otherwise restricted, committed or assigned and is intended to be used for expenses that surface after the end of the traditional budgeting process. Contingency reserves in excess of $500,000 are assigned to General Fund Capital Reserves.

Gann Limit
In accordance with Article XIIIB of the State Constitution, the City must establish an annual appropriations limit by resolution known as the “Gann Limit”. This year, the City’s appropriation limit is established at $167,138,759 as stated in the attached resolution. The data used in computing the City’s appropriation limit has been available for public inspection.

Annual Schedule of Property Rental and Administrative Charges to Municipal Water & Sewer Utility Funds
Annually a calculation is made to recover the cost of the use of city property and city services that are provided to or used by the Municipal Water and Sewer Utility Funds. This schedule and methodology is adopted by resolution annually and detailed information relating to the calculation of these charges is available in the Finance Department at least fifteen days prior to the

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FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

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presentation of the budget for adoption consideration. This year, the reimbursement requested is $1,935,534.

FINANCIAL ANALYSIS:

The Proposed FY 2022-23 Annual Operating Budget and Capital Improvement Program is balanced with a projected structural surplus of $3,246,163, maintains essential public services and supports capital improvements while continuing the City’s commitment to restoring reserves and paying down debt. The City’s financial policies, guided by the Measure HH “Responsible Spending Pledge” and the 20-Year Financial Plan, aim to ensure the City’s long-term fiscal sustainability and ability to adapt quickly to changing economic climates.

ALTERNATIVES:

Alternative No. 1: Adopt a resolution adopting the FY 2022-23 City of Fountain Valley Annual Budget and related schedules; Ten-Year Capital Improvement Plan; and Financial, Budget and Debt Policies. (Adoption of the ten year Capital Improvement Plan consistent with Measure M2 Eligibility process) and; Adopt a resolution approving the FY 2022-23 Gann Appropriations Limit; and Adopt a resolution establishing the FY 2022-23 annual schedule of property rental and administrative service charges to the Municipal Water and Sewer Utility Funds; Alternative No. 2: Not adopt the FY 2022-23 Fiscal Year Budget and related actions and continue this matter to a later date. This alternative is not recommended as such action could impair the City’s ability to operate or provide City services after June 30, 2022 without authorizing appropriations amounts as required by City policy.

RECOMMENDATION:

It is recommended that the City Council approve Alternative No. 1, which is to:

2. Adopt a resolution approving the FY 2022-23 Gann Appropriations Limit; and

3. Adopt a resolution establishing the FY 2022-23 annual schedule of property rental and Administrative Service Charges to the Municipal Water and Sewer Utility Funds.

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FY 2022-23 Proposed Annual Operating Budget & CIP
June 7, 2022

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Prepared by: Shannon Espinoza, Budget Manager
Approved by: Raul Godinez II, Interim City Manager
Attachment 1: Resolution adopting the FY 2022-23 Proposed Annual Operating Budget & Capital Improvement Program
Attachment 2: Resolution adopting the FY 2022-23 Gann Appropriations Limit.

Attachment 3: Resolution adopting the FY 2022-23 Annual Schedule of Property Rental and Administrative Service Charges to the Municipal Water & Sewer Utility Funds.

Attachment 4: FY 2022-23 Proposed Annual Operating Budget and Capital Improvement Program schedules

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY, CALIFORNIA, ADOPTING AN ANNUAL BUDGET AND RELATED

DOCUMENTS FOR THE CITY OF FOUNTAIN VALLEY, FOR FISCAL YEAR 2022/23
WHEREAS, the City Manager and Budget Manager have, heretofore, presented to the City Council a Proposed Operating Budget for Fiscal Year 2022/23; and WHEREAS, the Proposed Operating Budget includes the City of Fountain Valley, and information related to the Successor Agency, Housing Authority, and Public Financing Authority; and
WHEREAS, the City Council did hold a public workshop on May 17, 2022, in the Council Chambers of City Hall of said City, in order to review the proposed budget documents for Fiscal Year 2022/23; and
WHEREAS, the City Council did review proposed budget for the Fiscal Year 2022/23.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY, CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Said Proposed Operating Budget, as so amended, is hereby adopted as the Operating Budget for the City of Fountain Valley for the fiscal year commencing July 1, 2022 and ending June 30, 2023, and consists of estimated and anticipated expenditures and revenues for that fiscal year.

SECTION 2. The City Council does hereby approve and authorize the salary allocations as presented throughout the various departmental programs; the schedule of Inter-fund transfers, estimated continuing appropriations amounts; 2022/23 Capital Improvement Program expenditures along with the use of Capital Reserve Fund monies; and authorize the identified assigned or committed allocation of the General Fund cash balances.

SECTION 3. The City Council does hereby adopt the ten year Capital Improvement Plan which is consistent with the seven year CIP program submitted to the Orange County Transportation Authority (OCTA) as part of the annual Measure M2 Eligibility process.

SECTION 4. The City Manager or his/her designee, for purposes of administrative necessity in implementing the budget, is hereby authorized to transfer funds between accounts, programs and line item expenditures as long as the transfer does not exceed the total appropriation within a given fund or where such transfer is expressly prohibited in a resolution or ordinance approved by the City Council.

SECTION 5. The Fiscal Year 2022/23 Financial & Budget Policies as presented in the 2022/23 Annual Budget are hereby adopted by the City Council. The City Council does hereby adopt a budget that does meet the requirements of the Financial & Budget Policies related to the “Balanced Budget” section of the policies.

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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 and ADOPTED by the City Council of the City of Fountain Valley at a regular City Council meeting held on this 7th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

Michael Vo, Mayor
ATTEST:

Rick Miller, City Clerk
APPROVED AS TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY, CALIFORNIA APPROVING AND ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022/23
WHEREAS, the State Constitution Article XIIIB restricts the appropriations growth rate for cities and other local jurisdictions; and
WHEREAS, the Article XIIIB, as amended by Proposition 111, requires cities to calculate their annual appropriations limit by the percentage change in 1) City population growth or county population growth; and 2) California per capita personal income or the increase in non-residential assessed valuation due to new construction; 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 Department for fifteen days prior to this meeting as required by Government Code Section 7910; and WHEREAS, a summary of this computation is provided in Exhibit “A”, which is incorporated by reference and attached hereto.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY, CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That the Appropriations Limit for 2022/23 shall be $167,138,759, as calculated in Exhibit A, and the Appropriations Subject to Limitation in Fiscal Year 2022/23 shall be $57,365,433 and therefore is $109,773,326 under the limit.

SECTION 2. That the City of Fountain Valley reserves the right to recalculate said limitation at a future time.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and enter it into the book of original Resolutions.

PASSED and ADOPTED by the City Council of the City of Fountain Valley at a regular City Council meeting held on this 7th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

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Michael Vo, Mayor
ATTEST:

Rick Miller, City Clerk
APPROVED AS TO FORM:

HARPER & BURNS LLP

Colin Burns
Attorneys for the City

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EXHIBIT A
Appropriations Limit
City of Fountain Valley
Fiscal Year 2022-23
AMOUNT
Last Year’s Limit (2021-22) $155,763,891
Adjustment Factors

1. Population(1) 0.9977

2. Inflation(2) 1.0755
Total Adjustment Factor(3) 1.073
Total Adjustments 11,374,868
Appropriations Limit for Fiscal Year 2022-23 $167,138,759 Appropriations Subject to Limit:

Proceeds of Taxes $57,365,433 55
Minus Exclusions -
Appropriations Subject to Limit $57,365,433
Fiscal Year 2022-23 Appropriations Limit 167,138,759
Less Appropriations Subject to the Limit 57,365,433
Difference Under the Limit $109,773,326
(1)The population factor may be based on the change in population of 1) the City; or 2) the County of Orange, as provided by the State of California’s Department of Finance. (2)The inflation factor may be based on 1) the change in per capita personal income for the State of California as provided by the State of California’s Department of Finance; or 2) the change in assessed valuation due to new nonresidential construction within the City.

The inflation factor adopted by the City for the current year appropriation limit represents the change in per capita personal income for the State of California as provided by the State of California Department of Finance.
(3)The total adjustment factor is calculated by multiplying the population factor by the inflation factor.

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1 RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL FOR THE CITY OF FOUNTAIN

VALLEY, CALIFORNIA, ESTABLISHING PROPERTY RENTAL TERMS

AND CHARGES FOR ADMINISTRATIVE SERVICES FOR THE
MUNICIPAL WATER & SEWER UTILITIES.

WHEREAS, the proposed 2022/23 budget for the Water & Sewer Funds maintains funding for the operating and capital improvement expenditures of the Water & Sewer Utilities; and WHEREAS, the City owns and maintains property at various locations throughout the city that are utilized by the Water Utility to locate reservoirs, wells, equipment and facilities; and WHEREAS, the Water Utility is required to construct and maintain various pipelines and appurtenances for transmitting and distributing water for any and all purposes including mains, lines and pumps necessary or proper therefore, in, along, upon, and under the streets within the City of Fountain Valley; and
WHEREAS, the Water Utility, during the life thereof, will pay to the City an amount in the form of a right-of-way usage fee for the water mains located within the street right-of-way and related maintenance costs; and
WHEREAS, this administrative arrangement which has been in place since 1958 saves money and promises efficiency; and
WHEREAS, the Water Utility will also pay a charge for its use of land located within the City for other appurtenances such as water well pumps, reservoirs, and water operation facilities; and
WHEREAS, administrative services are also provided to the Water & Sewer Utilities; and WHEREAS, the City has determined that it is in the best interest of the community to charge the Water & Sewer Utilities the amount of $1,935,534 in 2022/23 for these rights and services; and
WHEREAS, the schedule attached “Exhibit A” is based on substantial evidence establishing that these allocations represent the costs of providing administrative services to the Water & Sewer Utilities.

NOW, THEREFORE, BE IT RESOLVED BY the City Council of the City of Fountain Valley, California, that:

The Schedule attached hereto as Exhibit “A” is approved as the basis for allocating city property and service costs to the Water & Sewer Utilities.

PASSED, APPROVED, AND SIGNED this 7th day of June 2022, at a regular meeting of the City Council of the City of Fountain Valley.

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2 Attest:

Michael Vo, Mayor
Rick Miller, City Clerk
APPROVED AS TO FORM:

HARPER & BURNS LLP
Colin Burns
Attorneys for the City

ATTACHMENT
Exhibit A

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EXHIBIT A

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REVENUE BY CATEGORY
Original
Budget
Revised
Budget +/- Budget % Proposed Budget
+/- Prior
Year
%
2021-22 2022-23

GENERAL FUND OPERATING REVENUE DETAIL

PROPERTY TAX
40000 - CURRENT YEAR SECURED 12,735,000 12,735,000 - 0% 13,298,828 563,828 4% 40001 - SECURED RESIDUAL 1,450,000 1,450,000 - 0% 1,460,000 10,000 1% 40002 - CURRENT YEAR UNSECURED 370,000 370,000 - 0% 436,000 66,000 18% 40003 - PRIOR YEAR TAXES 90,000 90,000 - 0% 90,000 - 0% 40004 - PENALTIES/INT ON TAXES 19,000 19,000 - 0% 25,000 6,000 32% 40005 - HOMEOWNER PROP TAX RELIEF 57,000 57,000 - 0% 57,000 - 0% 40006 - PROPERTY TRANSFER TAX 300,000 300,000 - 0% 300,000 - 0% 40007 - MOTOR VEH IN LIEU 6,635,600 6,635,600 - 0% 7,055,060 419,460 6% 40008 - OTHER PROPERTY TAXES 262,000 262,000 - 0% 262,000 - 0% TOTAL PROPERTY TAX 21,918,600 21,918,600 - 0% 22,983,888 1,065,288 5%

FRANCHISE FEES
40200 - POWER FRANCHISE 668,000 668,000 - 0% 728,192 60,192 9% 40201 - NATURAL GAS FRANCHISE 110,000 110,000 - 0% 115,000 5,000 5% 40202 - RUBBISH FRANCHISE 500,000 500,000 - 0% 520,000 20,000 4% 40203 - WASTE FRANCHISE ROAD REHAB 292,000 292,000 - 0% 307,000 15,000 5% 40204 - CTVA/PCTV FRANCHISE 500,000 500,000 - 0% 410,000 (90,000) -18% TOTAL FRANCHISE FEES 2,070,000 2,070,000 - 0% 2,080,192 10,192 0%

SALES TAX
40100 - SALES & USE TAX 14,500,000 14,500,000 - 0% 15,107,000 607,000 4% 40101 - TRANSACTION TAX (MEASURE HH) 15,500,000 15,500,000 - 0% 16,153,000 653,000 4% 40102 - PUBLIC SAFETY SALES TAX (PROP 172) 421,000 421,000 - 0% 455,000 34,000 8% TOTAL SALES TAX 30,421,000 30,421,000 - 0% 31,715,000 1,294,000 4%

OTHER REVENUES
40300 - TRANSIENT OCCUPANY TAX 1,250,000 1,250,000 - 0% 1,400,000 150,000 12% INTEREST INCOME 960,000 960,000 - 0% 1,075,778 115,778 12% PERMITS & FEES, FINES 732,000 732,000 - 0% 733,000 1,000 0% GOVERNMENT AGENCY REVENUE 942,015 942,015 - 0% 761,374 (180,641) -19% CHARGES FOR SERVICES 1,801,389 1,801,389 - 0% 2,059,496 258,107 14% 48019 - CONTRIBUTE IN LIEU OF TAX (ADMIN SVCS CHARGE) 1,796,857 1,796,857 - 0% 1,872,929 76,072 4% TOTAL OTHER REVENUE 7,482,261 7,482,261 - 0% 7,902,577 420,316 6%

TRANSFER IN
48009 - TRANSFERS IN/GAS TAX 422,000 422,000 - 0% 495,043 73,043 17% 48018 - TRANSFER IN OTHER 78,449 78,449 - 0% 85,533 7,084 9% 48014 - TRANSFER IN/SEWER FUND 63,477 63,477 - 0% 62,605 (872) -1% TOTAL TRANSFER IN 563,926 563,926 - 0% 643,181 79,255 14%

62,455,787 62,455,787 - - 65,324,838 2,869,051 0

FUNCTIONAL REVENUE

COMMUNITY DEVELOPMENT
42256 - OCSD FEES/PROCESSING 4,000 4,000 - 0% 4,000 - 0% 42257 - GREEN BLDG STANDARDS FEE 250 250 - 0% 250 - 0%
42258 - SB 1186/ADA FEE 3,000 3,000 - 0% 10,000 7,000 233% 42010 - BUILDING PERMIT 670,000 670,000 - 0% 700,000 30,000 4% 42011 - ELECTRICAL PERMIT 90,000 90,000 - 0% 90,000 - 0% 42012 - HEATING & MECH PERMIT 58,000 58,000 - 0% 58,000 - 0% 42013 - PLUMBING PERMIT 50,000 50,000 - 0% 50,000 - 0%
42015 - OUTDOOR SALE EVENT PERMIT FEE 3,000 3,000 - 0% 3,000 - 0% 42016 - CONDITIONAL USE PERMIT 55,000 55,000 - 0% 58,500 3,500 6% 42017 - HOME OCCUPATION PERMIT 2,200 2,200 - 0% 2,200 - 0% 42018 - TEMPORARY BANNER PERMIT 400 400 - 0% 1,000 600 150% 42200 - GENERAL PLAN MAINTENANCE FEE 65,000 65,000 - 0% 65,000 - 0%

TOTAL GENERAL FUND REVENUE

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REVENUE BY CATEGORY
Original
Budget
Revised
Budget +/- Budget % Proposed Budget
+/- Prior
Year
%
2021-22 2022-23

GENERAL FUND OPERATING REVENUE DETAIL
42201 - SOILS REVIEW FEE 80,000 80,000 - 0% 80,000 - 0% 42202 - DEVELOPMENT REVIEW FEE 7,220 7,220 - 0% 7,220 - 0% 42203 - VARIANCE FILING FEE 8,000 8,000 - 0% 8,000 - 0% 42204 - ADMINISTRATIVE CITATION FEE 4,000 4,000 - 0% 4,000 - 0% 42205 - PRECISE PLAN FILING FEE 21,575 21,575 - 0% 21,575 - 0% 42206 - ZONE CHANGE FILING FEE 7,110 7,110 - 0% 7,110 - 0% 42207 - LOT SPLIT FILING FEE 2,000 2,000 - 0% 2,000 - 0% 42208 - NEGATIVE DECLARATION FEE 3,000 3,000 - 0% 3,000 - 0% 42209 - CEQA CLEARANCE FEE (FRMRLY EIR 100,000 100,000 - 0% 100,000 - 0% 42211 - DEVELOPMENT AGREE. FEE 10,745 10,745 - 0% 10,745 - 0% 42212 - CODE AMENDMENT FEE 4,745 4,745 - 0% 4,745 - 0%
42215 - TENATIVE TRACT MAP FEE 1,960 1,960 - 0% 1,960 - 0% 42217 - PLANNING-PLAN CHECK FEE 100,000 100,000 - 0% 125,000 25,000 25% 42218 - FORECLOSURE REGISTERATION FEE 4,500 4,500 - 0% 4,500 - 0% 42219 - ADMIN WIRELESS COM. FAC. FEE 10,000 10,000 - 0% 10,000 - 0% 42220 - SIGN REVIEW FEE 6,500 6,500 - 0% 6,500 - 0%
42221 - ZONING COMPLIANCE LETTER 1,000 1,000 - 0% 1,000 - 0% 42250 - MICROFILMING FEES 15,000 15,000 - 0% 15,000 - 0% 42251 - PLAN CHECK FEES 340,000 340,000 - 0% 340,000 - 0% 42252 - CITY ONLY-SPECIAL PROJECTS 400 400 - 0% 400 - 0% 42253 - IMPROVEMENT INSPECTION FEE 7,000 7,000 - 0% 30,000 23,000 329% TOTAL COMMUNITY DEVELOPMENT 1,735,605 1,735,605 - 0% 1,824,705 89,100 5%

FINANCE
40301 - BUSINESS LICENSE TAX 385,000 385,000 - 0% 425,000 40,000 10% 42001 - MASSAGE PERMIT 4,000 4,000 - 0% 4,000 - 0%
42002 - SOLICTATION PERMIT 11,000 11,000 - 0% 11,000 - 0% 42750 - BUSINESS LIC. PENALTY 16,000 16,000 - 0% 16,000 - 0% TOTAL FINANCE 416,000 416,000 - 0% 456,000 40,000 10%
POLICE
42051 - ALARM PERMIT 48,000 48,000 - 0% 48,000 - 0%
42500 - TOW SERVICE FEES 80,000 80,000 - 0% 80,000 - 0% 42501 - TOW HEARING FEE (ADMIN) 1,500 1,500 - 0% 1,500 - 0% 42502 - IMPOUNDED VEHICLE RECORDS FEE 34,250 34,250 - 0% 34,250 - 0% 42503 - COURT ORDERED RESTITUTION 2,000 2,000 - 0% 2,000 - 0% 42504 - FINGERPRINT FEE 3,000 3,000 - 0% 3,000 - 0%
42702 - CITY CODE FINES/PARKING 300,000 300,000 - 0% 300,000 - 0% 42753 - FALSE ALARM PENALTY 35,000 35,000 - 0% 35,000 - 0% 43000 - P.O.S.T. 5,000 5,000 - 0% 5,000 - 0%
45001 - POLICE AUCTIONS 1,000 1,000 - 0% 1,000 - 0%
45004 - COPY SALES 18,000 18,000 - 0% 18,000 - 0%
45101 - RNSP REIMBURSEMENT - - - N/A - - N/A
45102 - AB109 REIMBURSEMENTS 11,000 11,000 - 0% 11,000 - 0% 45105 - BSCC FUNDING(REIMB) - - - N/A - - N/A
45200 - RECOVERY OF EXPENSE 2,000 2,000 - 0% 2,000 - 0% TOTAL POLICE 540,750 540,750 - 0% 540,750 - 0%

PUBLIC WORKS
42030 - EXCAVATION PERMIT 200,000 200,000 - 0% 200,000 - 0% 42031 - MOVING PERMIT 5,000 5,000 - 0% 5,000 - 0%
42033 - OTHER PERMITS/MISC. 5,000 5,000 - 0% 5,000 - 0% 42300 - FINAL MAP CHECK FEE 3,540 3,540 - 0% 3,540 - 0% 42301 - EASEMENT FEES - - - N/A - - N/A
42302 - IMPROVEMENT PLAN CHECK 135,000 135,000 - 0% 115,000 (20,000) -15% 42303 - WATER QUALITY MGMT-PLAN REVIEW 100,000 100,000 - 0% 65,000 (35,000) -35% 42304 - IMPROVEMENT INSPECTION FEE 145,000 145,000 - 0% 90,000 (55,000) -38% 42305 - WATER QUALITY MGMT-INSPECTION - - - N/A - - N/A 42306 - LANDSCAPE INSPECTION FEE 10,000 10,000 - 0% 5,000 (5,000) -50% 42307 - TREE REMOVAL/REPLACE. FEE 12,500 12,500 - 0% 12,500 - 0% 42308 - MEMORIAL TREE BENCH&PLAQUE PGM 1,000 1,000 - 0% 1,000 - 0% 42309 - MISC ENG & OTHER FEES 80,600 80,600 - 0% 1,000 (79,600) -99% 42310 - STORM WATER PREVENTION FEE 120,000 120,000 - 0% 120,000 - 0%

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REVENUE BY CATEGORY
Original
Budget
Revised
Budget +/- Budget % Proposed Budget
+/- Prior
Year
%
2021-22 2022-23

GENERAL FUND OPERATING REVENUE DETAIL
42311 - MEDIAN FEES 1,500 1,500 - 0% 1,500 - 0%
TOTAL PUBLIC WORKS 819,140 819,140 - 0% 624,540 (194,600) -24% FIRE
42050 - FIRE PERMIT 105,000 105,000 - 0% 105,000 - 0%
42400 - PARAMEDIC SUBSCRIPTION FEE 130,000 130,000 - 0% 130,000 - 0% 42402 - FPB RE-INSPECTION FEE 100,000 100,000 - 0% 100,000 - 0% 42403 - PLAN CHECKS/PERMITS 90,000 90,000 - 0% 90,000 - 0% 42406 - PARAMEDIC IMPACT PAYMENT 203,000 203,000 - 0% 203,000 - 0% 42407 - HAZARD MATERIALS FEES 78,000 58,000 (20,000) -26% 58,000 (20,000) -26% 42409 - OC PROP. FIRE PROTECT FEE 19,000 19,000 - 0% 19,000 - 0% 42410 - EMS REVENUE 2,435,997 2,435,997 - 0% 2,454,855 18,858 1% 42411 - QAF REVENUE 132,000 132,000 132,000 - 0%
42753 - FALSE ALARM PENALTY 7,500 7,500 - 0% 7,500 - 0% 45200 - RECOVERY OF EXPENSE 385,601 385,601 - 0% 385,601 - 0% TOTAL FIRE 3,686,098 3,666,098 (20,000) -1% 3,684,956 (1,142) 0%

RECREATION & COMMUNITY SERVICES
41510 - COMM CENTER ROOM RENTS 60,000 60,000 - 0% 70,000 10,000 17% 41511 - REC CENTER ROOM RENTS 30,000 30,000 - 0% 50,000 20,000 67% 41512 - FIELD LIGHTING 20,000 20,000 - 0% 39,636 19,636 98% 41513 - BALL FIELD RENTS 160,000 160,000 - 0% 200,000 40,000 25% 41514 - TENNIS COURTS RENTS 35,000 35,000 - 0% 63,600 28,600 82% 42600 - DROP IN FEE - SR. FITNESS 9,000 9,000 - 0% 7,000 (2,000) -22% 42602 - NEWSLETTER-SENIORS 8,500 8,500 - 0% 11,500 3,000 35% 42603 - SENIOR TRANSP PROG -RIDER FEES 25,000 25,000 - 0% 20,000 (5,000) -20% 42650 - CONTRACT PROGRAM FEES 100,000 100,000 - 0% 90,000 (10,000) -10% 42651 - ATHLETIC FEES 75,000 75,000 - 0% 75,000 - 0%
42654 - FAMILY CAMPOUT - - - 0% 1,000 1,000 N/A
42655 - FOUNTAIN VALLEY SUMMERFEST 60,000 60,000 - 0% 60,000 - 0% 42658 - SPECIAL EVENTS 50,250 50,250 - 0% 60,000 9,750 19% 42657 - CITY ADVERTISING 3,000 3,000 - 0% 3,000 - 0%
44500 - DONATIONS 67,000 67,000 - 0% 65,000 (2,000) -3% 44505 - SENIOR TRANSP PROG - OCMMC DON 20,000 20,000 - 0% 20,000 - 0% 44506 - FV COMMTY FOUNDATION DONATION 4,000 4,000 - 0% 4,000 - 0% 45103 - RESIDUAL RECEIPTS - SUMMERFEST 10,000 10,000 - 0% 10,000 - 0% 45104 - FV COMMUNITY FOUNDATION REIMB 15,000 15,000 - 0% 15,000 - 0% 45106 - OTHER CONCESSIONS 14,000 14,000 - 0% 6,800 (7,200) -51% 45300 - MISC OTHER INCOME - - - 0% 5,000 5,000 N/A
TOTAL RECREATION & COMMUNITY SERVICES 765,750 765,750 - 0% 876,536 110,786 14% Total Functional Revenues 7,963,343 7,943,343 (20,000) (0) 8,007,487 44,144 0 Total General Fund Revenues 70,419,130 70,399,130 (20,000) 0% 73,332,325 2,913,195 4%

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Department
Personnel
Expense
Internal
Service
Allocation
Operating
Expense Total
Administration
City Council 81,691 53,714 20,000 155,405
City Manager 285,293 71,125 498,410 854,828
Administrative Services 307,082 54,692 153,600 515,374
Total Administration 674,066 179,531 672,010 1,525,607
City Clerk
Records Management 128,556 65,906 16,500 210,962
Elections 16,132 9,595 50,000 75,727
Total City Clerk 144,688 75,501 66,500 286,689
Finance
Financial Plan/Control 990,256 282,476 443,920 1,716,652 Purchasing 206,285 - 82,085 288,370
Business License 30,003 9,001 82,100 121,104
Total Finance 1,226,544 291,477 608,105 2,126,126
Human Resources
Employee Relations 818,513 77,878 508,200 1,404,591
Total Human Resources 818,513 77,878 508,200 1,404,591
Community Development
Planning 651,856 127,242 257,555 1,036,653
Building 751,324 61,762 241,250 1,054,336
Total Planning/Building 1,403,180 189,004 498,805 2,090,989 Public Works
Engineering 384,447 250,045 399,645 1,034,137
Traffic Engineering 266,532 106,976 6,015 379,523
Construction Inspection 196,201 75,623 25,380 297,204
Street Lighting 25,614 11,652 295,000 332,266
Total Public Works 872,794 444,296 726,040 2,043,130
Field Services
Right of Way 180,882 123,508 450,841 755,231
Tree Maintenance 99,231 109,449 366,280 574,960
Park Maintenance 258,327 118,398 630,118 1,006,843
Concrete Maintenance 302,787 200,401 3,300 506,488
Pavement Maintenance 314,583 208,179 31,600 554,362
Storm Drain Maintenance 508,473 75,568 22,700 606,741
Traffic Control Maintenance 212,905 181,878 91,200 485,983 Street Sweeping 22,642 20,415 383,285 426,342
Recreation Center 131,182 309,901 667,730 1,108,813
Graffiti Removal 242,309 107,886 10,200 360,395
Total Field Services 2,273,321 1,455,583 2,657,254 6,386,158 Fire
Fire Suppression 5,463,141 907,339 582,598 6,953,078
Paramedics 3,609,289 357,689 10,820 3,977,798
Fire Prevention 666,980 84,223 58,645 809,848

GENERAL FUND OPERATING EXPENDITURES

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Department
Personnel
Expense
Internal
Service
Allocation
Operating
Expense Total

GENERAL FUND OPERATING EXPENDITURES
Fire Reserves 93,077 663 9,485 103,225
Disaster Prep 137,857 30,067 9,710 177,634
Hazardous Materials 119,214 21,209 9,135 149,558
F.I.R.S.T. 35,470 6,468 3,540 45,478
Ambulance 110,697 - 1,506,335 1,617,032
Total Fire 10,235,725 1,407,658 2,190,268 13,833,651
Police
Patrol 8,840,537 1,607,812 544,698 10,993,047
S.W.A.T. 85,340 21,586 11,000 117,926
Canine 393,847 106,463 19,620 519,930
Traffic 789,682 234,649 305,030 1,329,361
Investigation 3,230,677 555,981 113,104 3,899,762
Communications 1,230,268 144,700 11,000 1,385,968
Records Management 644,659 234,131 22,812 901,602
Range - 4,638 24,768 29,406
Crime Prevention 133,355 26,250 15,530 175,135
Total Police 15,348,365 2,936,210 1,067,562 19,352,137
Community Services
Athletics 153,150 254,908 55,960 464,018
Field Operations 173,892 125,935 12,000 311,827
Annual Festivals 28,570 2,764 50,000 81,334
Aquatics - - - -
Park Patrol 74,936 35,207 4,450 114,593
Recreation Center 273,362 306,714 18,350 598,426
Community & Senior Center 408,123 301,122 15,700 724,945 Contract Classes 168,893 129,497 57,200 355,590
Special Events 141,811 139,352 63,250 344,413
Senior Transportation 26,995 - 103,500 130,495
Total Community Services 1,449,732 1,295,499 380,410 3,125,641 Grand Total 34,446,928 8,352,637 9,375,154 52,174,719
Note: Operating expenditures only. Excludes capital projects, grants, etc.

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GENERAL FUND & INTERNAL SERVICE FUND BALANCE SUMMARY
2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 Projected Budget Projected Budget Projected Budget Projected Budget Beginning Fund Balance 57,506,069 71,245,025 3,360,512 2,133,533 3,221,340 2,590,635 6,872,729 3,834,835 Revenues
Operating Revenue 59,899,811 62,611,248
Charges to Departments (ISF) - - 1,691,422 1,950,219 2,094,090 2,912,359 1,856,331 2,374,184 Functional Revenue 7,882,743 8,007,486
Grants/Projects 1,174,062 2,070,409
ARPA 7,952,893
Transfers In 563,926 643,181 - 392,406 - 191,992 - 65,000 Total Revenues 77,473,435 73,332,324 1,691,422 2,342,625 2,094,090 3,104,351 1,856,331 2,439,184 Expenditures
Operating 46,891,385 54,019,736 2,918,579 3,676,158 2,724,795 3,944,986 4,894,225 3,539,018 Capital (Inc. OCTA Reimbursable) 1,523,944 10,260,156
CalPERS UAL Funding/OPEB Trust 3,000,000 3,000,000
Debt Service 1,092,492 1,097,828
Transfer Out - Emp. Benefit 9,152,622 9,792,930
Transfer Out - Gas Tax/Other 2,074,036 2,175,668 -
Sub Total Expenditures 63,734,479 80,346,318 2,918,579 3,676,158 2,724,795 3,944,986 4,894,225 3,539,018 Fire Apparatus Reserve - - - - - - 777,949
Ending Fund Balance 71,245,025 64,231,031 2,133,355 800,000 2,590,635 1,750,000 3,834,835 1,957,052 Desired Reserve
General Fund Information Services Government Buildings Fleet Management $800,000 $1,750,000 $2,000,000

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Beginning Fund Balance
Revenues
Operating Revenue
Charges to Departments (ISF)
Functional Revenue
Grants/Projects
ARPA
Transfers In
Total Revenues
Expenditures
Operating
Capital (Inc. OCTA Reimbursable)
CalPERS UAL Funding/OPEB Trust
Debt Service
Transfer Out - Emp. Benefit
Transfer Out - Gas Tax/Other
Sub Total Expenditures
Fire Apparatus Reserve
Ending Fund Balance
Desired Reserve

GENERAL FUND & INTERNAL SERVICE FUND BALANCE SUMMARY
2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 2021-22 2022-23 Projected Budget Projected Budget Projected Budget Projected Budget 931,227 931,227 772,567 4,988,113 1,586,817 2,080,893 74,251,261 87,804,261 59,899,811 62,611,248
161,243 290,916 2,559,288 3,254,333 10,676,367 11,226,740 19,038,742 22,008,751 7,882,743 8,007,486
1,174,062 2,070,409
- 49,001 - 9,963,750 10,652,982 10,527,676 11,994,562
161,243 339,917 2,559,288 3,254,333 20,640,117 21,879,722 98,523,034 106,692,456 441,186 471,144 2,929,356 3,393,501 20,820,117 21,797,278 81,619,643 90,841,821 1,523,944 10,260,156
3,000,000 3,000,000
1,092,492 1,097,828
- 9,152,622 9,792,930
- 633,399 2,074,036 2,809,067
441,186 471,144 2,929,356 4,026,900 20,820,117 21,797,278 98,462,737 117,801,802 - - - - - - - 777,949
651,284 800,000 402,499 4,215,546 1,406,817 2,163,337 74,311,557 75,916,966 Capital Equipment Employee Benefits All Funds
$800,000 $3,000,000 $2,000,000
Self Insurance

Page 143 ends

Transfers Out
General
Fund
(100)
Gas Tax
(240)
Traffic
Improv.
(242)
Drainage
(340)
Water
Fund
(500)
Info Tech
(110)
ISF Govt.

Bldg
(111)
ISF
Fleet
(112)
ISF
Capital
(113)
ISF Self
Ins.
(114)
ISF Benefits
(115) Total
General Fund (100)
Gas Tax Fund 672,840 672,840
IS - Employee Benefit Fund 9,792,930 9,792,930
Drainage Fund 405,000 405,000
Total General Fund 10,870,770 - 672,840 - 405,000 - - - - - - 9,792,930 10,870,770 Self Insurance Fund
Self Insurance 633,399 392,406 191,992 49,001
Total Criminal Diversion 633,399 - - - - - 191,992 - - - 191,992 Road Maintenance & Rehabilitation (241)
Traffic Improvement Fund 1,260,842 630,421 630,421
Traffic Improvement Fund -
Total Road Maintenance & Rehabilitation 1,260,842 - 630,421 630,421 - - - - - - 1,260,842 Gas Tax Fund (240)
General Fund 495,043 495,043
Total Gas Tax Fund 495,043 495,043 - - - - - - - - 495,043 Measure M2 Fund (243)
General Fund 85,533 85,533
Traffic Improvement Fund 3,027,580 3,027,580
Total Measure M2 Fund 3,113,113 85,533 - 3,027,580 - - - - - - 3,113,113 Pollution Reduction Fund (244)
IS - Fleet 65,000 65,000
Total Pollution Reduction Fund 65,000 - - - - - - 65,000 - - 65,000 Sewer Assessment Fund (501)
General Fund 62,605 62,605
Gas Tax Fund 30,000 30,000
Traffic Improvement 30,000 30,000
IS - Employee Benefit Fund 147,416 147,416
Total Sewer Assessment Fund 270,021 62,605 30,000 30,000 - - - - - 147,416 270,021 Water Utility Fund (500)
Gas Tax Fund 40,000 40,000
Traffic Improvement 25,000 25,000
IS - Employee Benefit Fund 712,636 712,636
Total Water Utility Fund 777,636 - 40,000 25,000 - - - - - 712,636 777,636 Total All Funds 17,485,824 643,181 1,373,261 3,713,001 405,000 - 191,992 65,000 - 10,652,982 17,044,417 Transfers In

FUND TRANSFERS IN & OUT DETAIL

Page 144 ends

FY 2021-22 FY 2022-23
Fund FY 2021-22 Estimated Estimated
Account No. Account Description Funding Source Budget Actual (Rev)/Exp. Cont. Approp. 100 General Fund
1002218007 Sports Park Outbuilding(Interior ADA) Measure HH 500,000 18,200 481,800 1002216103 Fire Station No. 1 Remodel Design Measure HH 1,000,000 33,418 966,582 1001917002 Police Locker Room/Showers Remodel Measure HH 2,966,251 360,200 2,606,051 1001918101 Recreation Center Interior Remodel 98 TAB Proceeds 611,842 603,927 7,915 1002210004 City Hall Interior Remodel 98 TAB Proceeds 250,000 25,742 224,258 1002280101 All Accessable Playground Equipment at the Sports Park General Fund/Grants/Park Fee 1,000,000 23,418 976,582 1002280002 Sports Park Road Network Rehab Measure HH 650,000 41,900 608,100 1001722001 I-405 Improvement OCTA 976,265 375,230 601,035 1001722001 I-405 Improvement OCTA Reimbursed (976,265) (375,230) (601,035) 1002223005 Harbor Median Irrigation General Fund 500,000 - 500,000 1001803001 General Plan Update Economic Development 1,098,439 199,355 899,084 1002103001 General Plan Update - SB2 Planning Grant Grant 100,748 99,748 1,000 1002103001 State Grant - SB2 Grant Reimbursed (100,748) (99,748) (1,000) 1002103002 General Plan Update - LEAP Grant Grant 60,267 59,267 1,000 1002103002 State Grant - LEAP Grant Reimbursed (60,267) (59,267) (1,000) Total General Fund 8,576,532 1,306,160 7,270,372
270 Criminal Diversion

15.3.71782.2.3422 Federal Grant - 21/22 OTS Step (50,000) (8,000) (42,000)

15.4.71782.1.4323 Overtime - Sworn 43,950 8,000 35,950

15.4.71782.3.4463 Educational Meeting 2,725 - 2,725

15.4.71782.5.4849 Misc. Equipment 3,325 - 3,325
Total Criminal Diversion Fund - -
230 CDBG
2302203001 Mortgage Assistant (MAG) Grant 100,000 - 100,000 Total CDBG Fund 100,000 - 100,000
242 Trafic Improvement Fund
2422125002 (8)Traffic Signal Mod. Improvements 2,596,790 121,581 2,475,209 2422221006 Heil -Euclid/Harbor & Ward -Edinger/NCL 120,000 120,000 - 2422225004 Traffic Signal Controllers Citywide 400,000 - 400,000 2422225005 Euclid/Condor & Talbert/Bushard Signal Mod. 80,000 - 80,000 2422225103 Magnolia Traffic Signal Synchronization 50,000 - 50,000 2422225107 Talbert Traffic Signal Synchronization 85,000 - 85,000 2422225108 Warner Traffic Signal Synchronization 85,000 - 85,000 2422225109 Edinger Traffic Signal Synchronization 65,000 - 65,000 Total Traffic Improvement Fund 3,481,790 241,581 3,240,209 340 Drainage Fund
3402130101 Talbert Channel Storm Drain 150,000 9,119 140,881 Total Drainage Fund 150,000 9,119 140,881
501 Sewer Utility
5012222004 OCTA Utilities Relocation Agreement (23,195) - (23,195) 5012222004 I-405 Utilities Facilities Relocation - UK031024 23,195 - 23,195 Total Sewer Fund - - -
112 Fleet ISF
Police Patrol Vehicles + Outfitting 186,000 - 186,000
Arrow XT PUC Fire Engine 847,419 - 847,419
Total Fleet ISF 1,033,419 - 1,033,419
500 Water Utility
5002154001 Hydrogeological/Well Rehabilitation Consultant 128,467 53,467 75,000 5002205008 Water Master Plan 350,000 - 350,000
5002250006 Mt. Baldy/Euclid Pipeline Replacement 282,000 41,870 240,130 5002254101 Well Site No. 6 300,000 - 300,000
5002254202 Well Site No. 8 800,000 - 800,000
5002254504 Well Site No. 11 900,000 - 900,000
5001722001 - 5002022005 I-405 Utilities Facilities Relocation 267,599 80,000 187,599 Total Water Fund 3,028,066 175,337 2,852,729
Total All Funds 16,369,807 1,732,197 14,637,610

ESTIMATED CONTINUING APPROPRIATIONS

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Estimated Projected Adopted Capital Improvement Estimated Fund Fund Balance Revenue Total Transfer Transfer Appropriation Program Fund Balance No. Fund Description 7/1/2022 2022/23 Available In Out 2022/23 2022/23 6/30/2023 100 General Fund 71,245,024 70,816,215 142,061,239 2,516,110 10,870,770 59,215,392 10,260,156 64,231,031 Total General Fund 71,245,024 70,816,215 142,061,239 2,516,110 10,870,770 59,215,392 10,260,156 64,231,031 270 Criminal Diversion 409,843 7,100 416,943 22,300 394,643 271 COPS/Supplemental Law 248,448 153,000 401,448 115,075 286,373 241 Road Maintenance & Rehabilitation 193,172 1,261,841 1,455,013 1,260,842 194,171 240 Gas Tax/Street Improvements 1,735,219 1,632,243 3,367,462 1,373,261 495,043 56,000 2,955,000 1,234,680 242 Traffic Improvement 1,387,394 21,000 1,408,394 3,713,001 5,910,209 (788,814) 243 Measure M2 2,389,704 1,174,319 3,564,023 3,113,113 450,910 244 Pollution Reduction 574,915 64,000 638,915 65,000 13,560 40,000 520,355 340 Drainage Fund 55,346 1,000 56,346 405,000 405,000 56,346 233 Abandoned Vehicle Abatement 4,355 4,355 2,270 2,085 231 Housing Authority 18,385,869 216,500 18,602,369 409,110 18,193,259 232 Home Grant 332,461 332,461 332,461
230 Community Dev/HUD 450,000 500,000 950,000 950,000 - Total Special Revenue Funds 26,166,726 5,031,003 31,197,729 5,491,262 4,933,998 1,568,315 9,310,209 20,876,469 501 Sewer Assessment (Cash Balance) 7,541,125 2,490,120 10,031,245 270,021 1,187,655 638,195 7,935,374 500 Water Utility (Cash Balance) 17,727,483 21,149,755 38,877,238 777,636 17,332,196 4,302,729 16,464,677 502 Solid Waste 991,314 4,209,000 5,200,314 4,257,000 943,314 Total Enterprise Funds 26,259,922 27,848,875 54,108,797 - 1,047,657 22,776,851 4,940,924 25,343,365 601 Successor Agency 530,085 - 530,085 120,000 410,085
Total Successor Agency 530,085 - 530,085 - - 120,000 - 410,085 Subtotal 124,201,757 103,696,093 227,897,850 8,007,372 16,852,425 83,680,558 24,511,289 110,860,950 110 Information Technology 2,133,533 1,950,219 4,083,752 392,406 3,676,158 800,000 111 Government Buildings 2,590,635 2,912,359 5,502,994 191,992 3,944,986 1,750,000 112 Fleet Services 3,834,835 2,374,184 6,209,019 65,000 3,539,018 2,735,001 113 Capital Equipment 931,227 290,916 1,222,143 49,001 471,144 800,000 114 Self Insurance 4,988,113 3,254,333 8,242,446 633,399 3,393,501 4,215,546 115 Employee Benefits 2,080,893 11,226,740 13,307,633 10,652,982 21,797,278 2,163,337 Total Internal Service Funds 16,559,236 22,008,751 38,567,987 11,351,381 633,399 36,822,085 - 12,463,884 400 F.V.P.F.A Debt Service * 5,336 1,097,828 1,103,164 1,092,492 10,672 Total Others 5,336 1,097,828 1,103,164 - - 1,092,492 - 10,672 Total All Funds 140,766,329 126,802,672 267,569,001 19,358,753 17,485,824 121,595,135 24,511,289 123,335,506

ESTIMATED FUND BALANCE

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General Fund Balance Analysis 2021-22
Estimated Beginning Fund Balance 7/1/21 57,506,068
21-22
Revenues
Operating Revenues 67,782,554
Miscellaneous Reimbursements/Grants 1,174,062
Transfers-In 563,926
ARPA 7,952,893
Total Revenues 77,473,435
Expenditures
Operating 48,298,421
Debt Service 1,092,492
Transfers Out 9,819,622
CalPERS UAL - Additional Funding 3,000,000
Capital Rebudgets (includes Continuing Appropriations) 1,523,944 Total Expenditures 63,734,479
Budget Position 13,738,956
Projected Fund Balance 6/30/22 71,245,024

GENERAL FUND BALANCE DESIGNATIONS (PROJECTED)

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FY 2022-23 General Fund Operating Budget
Revenues
General Revenues 64,681,657
Functional Revenues 8,007,487
Transfers In 643,181
Total Operating Revenues 73,332,325
Expenditures
Salaries & Benefits 33,964,206
Internal Service Charges 8,352,637
Maintenance & Operations 15,800,721
Debt Service 1,097,828
Transfers-Out 10,870,770
Total Operating Expenditures 70,086,162
Operating Income/(Deficit) All Operating 3,246,163

GENERAL FUND OPERATING REVENUE & EXPENSE ANALYSIS

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Issuance Total Outstanding
Date Type of Long Term Debt Debt as of 06/30/22
2014 Series 2014A Revenue Bonds - Water Enterprise Fund 9,955,000 2015 Series 2015A Taxable Pension Obligation Bonds 13,595,000 2016 Series 2016A Lease Revenue Bonds 10,150,000
2017 Clean Renewable Energy Bonds 2,393,871
Total Outstanding City Long Term Debt $36,093,871

DEBT SERVICE ADMINISTRATION
As of June 30th, 2022 The City of Fountain Valley and the Successor Agency had a combined total of $36,093,871 of outstanding Long Term Debt. The debt covers Governmental Activities and Business-Type Activities, which includes Revenue Bonds, Pension Obligation Bonds, Certificates of Participation and Clean Renewable Energy Bonds. A schedule of each outstanding long-term debt, as of June 30th, 2022 is listed below.

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2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2021-2032 Project % Reserve/Source
General Fund Projects
General Plan Update Varied Economic Dvlp/General Plan Fee 899,084 - - - - - - - - - General Plan Update - SB2 Planning Grant 100% Grant Funding - - - - - - - - - - General Plan Update - LEAP Grant 100% Grant Funding - - - - - - - - - - Recreation Center Interior Improvements 100% 98 TAB 7,915 - - - - - - - - - Sports Park All Accessible Playground Equipment Varied General Fund Capital/Grant/Donations 1,726,582 - - - - - - - - - Sports Park Outbuildings (Interior ADA/Renovation) 100% General Fund Capital 981,800 - - - - - - - - - Sports Park Road Network Rehabilitation 100% General Fund Capital 758,100 - - - - - - - - - HVAC & Edison Imprvmnts Field Concession Bldgs 100% General Fund Capital 105,000 - - - - - - - - - Tennis Center Fence Replacement 100% General Fund Capital 100,000 - - - - - - - - - Sports Park Walking Trail Fitness Eqpt/Landscape 100% General Fund Capital 300,000 - - - - - - - - - Police Locker Room/Showers Remodel 100% 98 TAB - - - - - - - - - - Police Locker Room/Showers Remodel 100% General Fund Capital - HH 2,639,800 - - - - - - - - - Fire Station No. 1 Remodel 100% General Fund Capital - HH 966,582 8,000,000 - - - - - - - - City Hall Interior Remodel 100% General Fund Capital 674,258 - - - - - - - - - Harbor Median Irrigation 100% General Fund Capital 500,000 - - - - - - - - - I-405 Improvement 100% OCTA Reimbursement 601,035 - - - - - - - - - Total General Fund Projects 10,260,156 8,000,000 - - - - - - - - Non-Departmental
Park Improvements 100% Operating 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Total Non-Departmental 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Total 10,460,156 8,200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000

CAPITAL IMPROVEMENT TEN YEAR PLAN - GENERAL FUND

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2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 Project
Residential Roadway Rehabilitation
Residential Roadway Rehabilitation 2,900,000 1,500,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,500,000 1,500,000 Total Residential Rehabilitation 2,900,000 1,500,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 1,500,000 1,500,000 Traffic Control
Restriping-Various Locations 55,000 - - 25,000 - - 25,000 - - - Total Traffic Control 55,000 - - 25,000 - - 25,000 - - - Arterial Roadway Rehabilitation
Heil-Magnolia/Brookhurst - - - - - 500,000 - - - -
Collector Streets - - 350,000 - - - - - - -
Industrial Streets - - 350,000 - - - - - - -
Total Arterial Roadway Rehabilitation - - 700,000 - - 500,000 - - - - ADA Projects
School Area ADA Pedestrian Ramps - - - - - - - - - -
Total ADA Project - - - - - - - - - -
Total Gas Tax Projects 2,955,000 1,500,000 2,100,000 1,425,000 1,400,000 1,900,000 1,425,000 1,400,000 1,500,000 1,500,000

CAPITAL IMPROVEMENT TEN YEAR PLAN - GAS TAX

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2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 Project Type
Pavement Rehabilitation
Heil - Euclid/Harbor & Ward - Edinger/NCL Rehab. 1,500,000 - - - - - - - - - Edinger -Newhope/Harbor Rehab. 120,000 1,700,000 - - - - - - - - Newland - Slater/Talbert Rehab. 300,000 - - - - - - - - - Magnolia - Edinger/Heil Rehab. 200,000 - - - - - - - - - Arterial Rehabilitation Project Rehab. - - 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Total Pavement Rehabilitation $ 2,120,000 $ 1,700,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Signal & Signage
Citywide Signal Retiming SIG - 200,000 - - 200,000 - - 200,000 - - Citywide Coordination Timing Maintenance SIG 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 Citywide Signal Communication Maintenance SIG 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000 PPLT Traffic Signal Improvements (8 traffic signals) SIG 2,475,209 - - - - - - - - - Traffic Signal Equipment Citywide SIG 500,000 - - - - - - - - - Euclid/Condor & Talbert/Bushard Sig MOD SIG 100,000 - - - - - - - - - Magnolia Avenue Signal Synchronization TSSP 50,000 - - - - - - - - - Slater Avenue Signal Synchronization TSSP 150,000 - - - - - - - - - Edinger Avenue Traffic Signal Synchronization TSSP 65,000 - - - - - - - - - Warner Avenue Traffic Signal Synchronization TSSP 85,000 Talbert Avenue Traffic Signal Synchronization TSSP 85,000 Euclid Signal Synchronization TSSP 110,000 - - - - - - - - - Harbor Signal Synchronization TSSP 85,000 - - - - - - - - - Bus Shelter at Harbor & Edinger SIG -
Total Signal & Signage $ 3,790,209 $ 285,000 $ 85,000 $ 85,000 $ 285,000 $ 85,000 $ 85,000 $ 285,000 $ 85,000 $ 85,000 g y Total Traffic Improvement Projects $ 5,910,209 $ 1,985,000 $ 1,585,000 $ 1,585,000 $ 1,785,000 $ 1,585,000 $ 1,585,000 $ 1,785,000 $ 1,585,000 $ 1,585,000

CAPITAL IMPROVEMENT TEN YEAR PLAN - TRAFFIC IMPROVEMENT

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2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 Project Type
Two Dual-port Charge Point EV Charging Station 40,000 - - - - - - - - - Total Pollution Reduction $ 40,000 $ - $ - $ - $ - $ - $ - $ - $ - $ -

CAPITAL IMPROVEMENT TEN YEAR PLAN - POLLUTION REDUCTION

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2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 Project Source
Drainage Master Plan Update GF 250,000 - - - - - - - - - Talbert Channel Repair Construction GF 155,000
Drainage GIS Mapping GF - 10,000 - 10,000 - 10,000 - 10,000 - 10,000 Total Drainage Projects 405,000 10,000 - 10,000 - 10,000 - 10,000 - 10,000

CAPITAL IMPROVEMENT TEN YEAR PLAN - DRAINAGE

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2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 Project Source
Sewer Manhole Rehabilitation SF 65,000 - 65,000 - 65,000 - 65,000 - - - Sewer Master Plan SF 350,000 - - - - - - - - -
I-405 Utility Facilities Relocation SF 23,195 - - - - - - - - - Structural Improvements SF 200,000 2,500,000 - - - - - - - - Annual Structural Improvements SF - - 200,000 2,000,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Total Sewer Projects 638,195 2,500,000 265,000 2,000,000 1,565,000 1,500,000 1,565,000 1,500,000 1,500,000 1,500,000

CAPITAL IMPROVEMENT TEN YEAR PLAN - SEWER

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2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 Projects
Rehabilitation Projects
Well Site No. 6 450,000 - - - - 250,000 - - - -
Well Site No. 8 900,000 - - - - - - - 600,000 -
Well Site No. 9 - 250,000 - - 350,000 - - - - -
Well Site No. 10 - - - - - - - 600,000 - -
Well Site No. 11 1,000,000 - - - - - - - 350,000 -
Well Site No. 12 - - - - - 600,000 - - - -
Reservoir No. 1 VFD Replacement - - - 1,000,000 - - - - - - Reservoir No. 1 Exterior Painting - 25,000 1,000,000 - - - - - - - Reservoir No. 2 - 25,000 1,000,000 - - - - - - -
MWD Connection - 300,000 3,000,000 - - - - - - -
Condition Assessment 300,000 300,000 - - - - - - - -
Pipeline Replacement - - - 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 OCTA Pipeline Replacement Agreement - - - - - - - - - - Annual Meter Replacement - - - 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 Chlorine Generators 100,000 100,000 100,000 - - - - - - - Mt Baldy/Euclid Pipeline Replacement 240,130
Other Programs/Projects
Water Conservation - - - - - - - - - -
Hydrogeolog/Well Rehab. Consultant 75,000 - - - - - - - - - Water Delivery (SCADA) 500,000 - - - - - - - - -
AMI Software/License Fees - 85,000 87,550 90,177 92,882 95,668 98,538 101,494 104,539 107,675 Master Plan 350,000 - - - - - - - - -
Vulnerability Assesment/Emergency Response Plan - - 175,000 - - - - 175,000 175,000 175,000 Urban Water Management Plan - - 70,000 - - - - - 70,000 70,000 Well Facility Drought Tolerant Landscape Improvements 200,000 - - - - - - - - - I-405 Utility Coop Agreement 187,599 - - - - - - - - -
Total Water Projects 4,302,729 1,085,000 5,432,550 5,090,177 4,442,882 4,945,668 4,098,538 4,876,494 5,299,539 4,352,675

CAPITAL IMPROVEMENT TEN YEAR PLAN - WATER

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Fountain Valley City CouncilJune 7, 2022

Fountain Valley City Council
June 7, 2022