Fountain Valley City Council
November 1, 2022

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

FOUNTAIN VALLEY HOUSING AUTHORITY
Closed Session 4:30 p.m.

Study Session 5:15 p.m.

Regular Meeting 6:00 p.m.

Tuesday, November 1, 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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• All public comments are allowed up to 3 minutes to speak.

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CLOSED SESSION

CALL TO ORDER

PUBLIC COMMENTS
4:30 p.m.
(Closed Session matters only)
Persons wishing to speak on a Closed 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.

1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 17101 Bushard Agency Negotiator: Maggie Le, City Manager, Omar Dadbhoy, Community Development Director, Ryan Smith, Finance Director, Ron Cookston, Fire Chief, Colin Burns, Attorney for the City Negotiating Parties: Kim Henry
Under Negotiation: Price and terms of payment

2. CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case:  Petition of WISP (FCC WT Docket No. 19-270)

3. CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives:  Mayor and City Manager Unrepresented employee:  Attorney for the City

STUDY SESSION

CALL TO ORDER

PUBLIC COMMENTS
5:15 p.m.
(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.

1. Improving WiFi at Sports Park – Presentation by HyeJin Lee, Public Works Director

2. Universally Accessible Playground Funding – Presentation by Community Services Director

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

INVOCATION
SALUTE TO THE FLAG Council Member Glenn Grandis

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

CITY MANAGER / MAYOR UPDATE

PRESENTATIONS

1. Hyundai Check Presentation – Presented by Rob Frizzelle, Community Services Director and Hyundai Corporate Social Responsibility Team

2. Pension Funding Update – Presentation by Ryan Smith, Finance Director

3. Update on homelessness strategy – Presentation by Matt Sheppard, Chief of Police

4. SiFi Smart City Presentation – Presentation by HyeJin Lee, Public Works Director

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 – 3 will be approved simultaneously with one motion, unless separate action/or discussion is requested.

1. Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only.

2. Receive and File the Draft Minutes of the October 18, 2022 Regular City Council Meeting

3. Approval of an Agreement between the City of Fountain Valley and the City of Anaheim for Urban Area Security Initiative (UASI) Grant Participation Page 11 It is recommended that City Council approve the Agreement between the City of Fountain Valley and the City of Anaheim for the transfer or purchase of equipment/ services or reimbursement of training costs for the Fiscal Year 2021 Urban Area Security Initiative (UASI) Grant Program

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

4. Central Cities Navigation Center; Second Memorandum of Understanding among Fountain Valley, Garden Grove and Westminster and Cooperation Agreement between City and Housing Authority to Implement Funding for Purchase of Real Property for Development and Operation of Navigation Center in Garden Grove – Presentation by Omar Dadabhoy – Community Development Director / Deputy City Manager Page 58 Approve the loan from General Fund to the Housing Authority in the amount of $940,000 to support the purchase of a Central Cities Navigation Center to address homelessness, the related cooperative agreement between the City and Housing Authority and adopt Resolution No XX approving the second MOU; and approve the Housing Authority budget adjustment for start-up costs.

ADMINISTRATIVE ITEMS

5. Adopt A Resolution of the City Council of the City of Fountain Valley Appointing Sherry Johnson as Interim Budget Manager Government Code Section 21221(h) and Approving a Retired Annuitant Contract – Presentation by Carrie Hanes, Human Resources Director

Staff is requesting City Council approval of Alternative No. 1 to Adopt a Resolution Appointing Sherry Johnson as an Interim Budget Manager and approving a Retired Annuitant Contract.

6. Introduction and first read of an ordinance adopting by reference the 2022 Edition of the California Fire Code as modified, and set a public hearing, second reading, and adoption of the ordinance on November 15, 2022.- Presentation by Michelle Rudaitis, Fire Marshall

Staff recommends Council approve the introduction and first read of an ordinance adopting by reference the 2022 Edition of the California Fire Code as modified, and set a public hearing, second reading and adoption of the ordinance on November 15, 2022

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 November 15, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

City of Fountain Valley
Memorandum
TO: Honorable Mayor and City Council
FROM: Hye Jin Lee, Director of Public Works
DATE: November 1, 2022
SUBJECT: Improving WiFi at Sports Park – Strategic Objective from June 9, 2022 Strategic Planning Session
______________________________________________________________________________ EXECUTIVE SUMMARY:

On June 9, 2022 Strategic Planning Session, improving the WiFi service at the Sports Park was identified as one of the objectives to the goal of “Enhance the Culture and Environment of a Nice Place to Live.” Staff identified several options to enhance the WiFi services at the Sports Park.

The City of Fountain Valley also has a robust fiber optic infrastructure that connects and allows all of our city facilities, traffic signals, Emergency Vehicle Pre-emption, and water system Supervisory Control and Data Acquisition (SCADA) to communicate in a closed secure system.

However, City is not an Internet Service Provider (ISP) thus we have limitation on what we can do with our fiber optic infrastructure. In the telecommunication industry, ISPs wish to own and operate their own fiber optic infrastructure instead of leasing it from a third-party (i.e. the City’s fiber optic).

Therefore, staff identified alternatives to providing WiFi internet service to the public at the Sports Park for many community events.

DISCUSSION:

Staff identified three options.

Option 1: Spectrum
o Spectrum currently provides WiFi at the Sports Park for free. The free service does not provide sufficient bandwidth for the large crowds trying to access WiFi at the same time.

Spectrum provided the following quote for a more robust service that can handle larger events. The quote per month is $4399/month.

Option 2: SmartCity Agreement with SiFi
o The City of Fountain Valley Council approved a License Agreement with SiFI to provide city-wide fiber optic infrastructure on May 14, 2022.
o As a SiFi partner, SiFi can also provide SmartCity services including WiFi at the Sports

Park.
o SmartCity can be a separate agreement or an extension of our license agreement which utilizes technology for connectivity and can be customized for only what our City needs. o City of Fountain Valley already has a robust fiber optic system. Therefore, we can opt in for limited ISP WiFi services at the Sports Park.
o SiFi Smart City presentation will follow during a normal council meeting tonight.

Option 3: Wisp - located at 10175 Slater Ave
o Wisp has an antenna located at Slater/San Mateo capable of receiving and projecting telecommunication signals and can function as the City’s ISP at the Sports Park. o Provide the WiFi services temporarily until SiFi SmartCity is implemented o Wisp will charge no direct fee to the City in exchange for advertisement during City’s events for Wisp services.
o Attorney for the City and City Staff are working with Wisp to re-establish public WIFI opportunities at the Fountain Valley Sports Park.

We have established the following positions/recommendations:
• Spectrum services is cost prohibitive.
• Wisp may be a good temporary option until SiFi SmartCity infrastructure is complete if the Council so chooses to proceed with SmartCity infrastructure. • Council may wish to defer providing staff direction until hearing from SiFi SmartCity presentation.

Staff is seeking City Council’s direction.

City of Fountain Valley
Memorandum
TO: Honorable Mayor and City Council
FROM: Rob Frizzelle, Community Services Director
DATE: October 28, 2022
SUBJECT: Universally Accessible Playground (UAP) Funding ______________________________________________________________________________ EXECUTIVE SUMMARY:

The City of Fountain Valley was awarded $211,000 from the State of California’s Office of Grants and Local Services (OGALS). The award is for the rehabilitation of the playground located at the Fountain Valley Sports Park. In addition to the identified playground rehabilitation, the city sought proposals from qualified vendors to develop the adjacent park space surrounding the playground to create a universally accessible recreation area. This area would include shade structures, seating, natural and independent play features to expand and intensify the active and passive recreational opportunities at the park.

DISCUSSION:

The design build RFP required vendors to separate the project into 3 development areas. The separation of development areas was required to allow the city to select any or all portions of the project depending on available funding and City Council’s discretion. The RFP limited proposals to a total cost not to exceed $1,500,000.
• Development Area 1 – Playground Rehabilitation
• Development Area 2 – Directly Adjacent Park Space (Shade/Seating/Independent Play) • Development Area 3 – Adjacent Grass Hill (Natural Play and Custom Design Area) Prior to bringing the highest scoring proposal or proposals to City Council for consideration, staff would like to present the potential funding options for the project.

Potential Funding Options include;
• Prop. 68 (OGALS) grant funding: $211,000 (requires 20% match by City) o $42,200 match required
• CIP Park Rehabilitation funding: $400,000 (General Fund) o The city pushed CIP park rehabilitation funding in FY 2019/20 and FY 2020/21 ($200,000 per fiscal year) to support the UAP project
• Community Support $100,000
o The FV Community Foundation has committed to a $50,000 match from the City’s annual Summerfest event revenues (2021 Summerfest)

• Corporate Sponsorship – Amount TBD
o UAP naming rights and sponsorship opportunities
• Park Facilities Fees – Amount TBD
o Development areas 2 and 3 are new construction and a portion of future park facility fees will be available to intensify to park usage to support new residents in Fountain Valley
Staff is seeking direction from City Council related to the UAP development areas and funding options.

MINUTES OF THE

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, October 18, 2022
Council Chambers

STUDY SESSION
CALL TO ORDER 5:00 p.m.

PUBLIC COMMENTS (Study Session matters only)
Katy Wright provided public comment.

1. Presentation on the Results of the Citizen Satisfaction Survey – Presentation by Rob Frizzelle, Community Services Director
Rob Frizzelle presented on the results of the Citizen Satisfaction Survey

2. Recap of the 3 Festivals and Community Services Events put on this year – Presentation by Rob Frizzelle, Community Services Director Rob Frizzelle presented a comprehensive recap on the new festivals put on by the City

3. New Revenue and/or Savings Options – Presentation by Sherry Johnson, Interim Finance Director
Sherry Johnson presented on new revenue and cost saving options

OPEN SESSION

CALL TO ORDER 6:04 p.m.

INVOCATION Mayor Patrick Harper

SALUTE TO THE FLAG Mayor Patrick Harper

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

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
None

CITY MANAGER / MAYOR UPDATES
City Manager Maggie Le touched on the success of the Fire Department Open House event and announced the upcoming Coffee with a Cop event on October

28. PRESENTATIONS
 Certificate of Kindness Presentation Presented to – Prentice Meeks of Republic Services
The Mayor presented the Certificate of Kindness to Prentice Meeks of Republic Services
 Hyundai Check Presentation – Presented by Rob Frizzelle, Community Services Director and Hyundai Corporate Social Responsibility
Moved this item to the November 1 meeting
 Presentation on the Measure M2 Update by OCTA
OCTA presented on the Measure M2 Update
 FVHS Football Bell Game presented by Coach David Gutierrez & Principal Paul Lopez
Coach David Gutierrez & Principal Paul Lopez gave a pep rally and invited the audience and City Council to attend the Bell Game

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC

COMMENTS
(Unscheduled Matters Only)
Katy Wright, Tracy Cameron, Jim Cunneen, Darrel Mymon-Brown, Stephanie Graham PUBLIC COMMENTS (Scheduled Matters Only)
There were several requests to speak on Item 4:

Sandy Strech, Shaun Diamond, Kim Yung, Thi Pham, Jenny Tran, Holly Le, Hanna Chi, Hugh Zhang, Henry Pho, Trong Nguyen, Trang Phan, Susan Castellanos, Edwin Spachez, Anh Nguyen, Veksiamjest Siyh, Chynh Nguyen, DeQwan Young, Katy Wright, Dung Le, Shirley Kaminski, Janet Duquette, Peter Hanna, Darrel Mymon-Brown, Richard Stewmon, Vernon Goldwater, Andy Tai, Eugene Murray Via Zoom on Item 4:

Bryan Misajon, Lynda, Angela Nguyen, Jaye Towne

CONSENT CALENDAR
Consent Calendar Items 1 – 3 & 5 were approved simultaneously.

1. Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only.

ACTION: Move to Waive the reading in full of all ordinances under consideration and direct the Mayor to read by titles only MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

2. Receive and File the Draft Minutes of the October 18, 2022 Regular Council Meeting ACTION: Move to Receive and File the Drafts Minutes of the October 18, 2022 Regular Council Meeting
MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None

ABSENT: None
ABSTAIN: None

3. Receive and File the Six Month Strategic Objectives matrix for August 23, 2022 through November 1, 2022.

ACTION: Move to Receive and File the Six Month Strategic Objectives matrix from August 23, 2022 through November 1, 2022.

MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None
ABSTAIN: None

4. Item Pulled by Mayor Pro Tem Constantine
Second Reading and Adoption of an Ordinance Declaring Existing Law that Short Term Rentals are Prohibited in the City of Fountain Valley and Increasing Administrative and Criminal Fines for Short-Term Rental and Building Code Violations
ACTION: Move to Adopt the attached Ordinance Declaring Existing Law that Short Term Rentals are Prohibited in the City of Fountain Valley and Increasing Administrative and Criminal Fines for Short-Term Rental and Building Code Violations
MOTION: Harper SECOND: Constantine
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None

5. Termination of the Declaration of Local Emergency Due to the Omni Metals HazMat Fire
ACTION: Move to Adopt a Resolution Terminating the Local Emergency due to the Omni Metals HazMat fire
MOTION: Vo SECOND: Grandis
AYES: Bui, Grandis, Vo, Constantine, Harper
NOES: None
ABSENT: None

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
There were no requests

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC

COMMENTS
(Unscheduled Matters Only)
None

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB
1234/GENERAL COMMENTS
Council Member Bui
No report was provided
Council Member Vo
No report was provided
Council Member Grandis
October 8 Attended the Boys and Girls Club Charity Auction October 12 Attended the Coastline College Foundation Board Meeting October 13 Attended the PCTA Subcommittee Meeting, then the Kiwanis Board Meeting
October 14 City Hall General Plan Approval Celebration
October 15 Attended the Fire Department Open House, then emcee’ d the FVHS Hall of Fame Event
Mayor Pro Tem Constantine
October 7 Volunteered a shift in the Friends of the Library bookstore, then attended the Advisory Committee for Persons with Disabilities Dance at the Senior Center
October 12 Met with the City vendor, SIFI, for a future Citywide Fios installation, then watched the Planning Commission Meeting October 13 Participated in the OC Mosquito and Vector Control Meeting via Zoom, then attended the FV Chamber Network at Night Mixer at the Ayres Hotel
October 14 Attended the Housing Element certification celebration at City Hall October 15 Attended the annual FV Fire Department Open House event, then attended the FVRA Endorsement Meeting
October 16 Attended the Free OC Health Fair at Freedom Hall, then attended

the FV City Council/School Board Candidates Forum at a fellow resident’s home
October 18 Attended the FV Rotary “Most Improved Student” event at the Senior Center, then watched the OC Board of Supervisors Meeting on the County’s website, then attended a “Timeless Venues” tour/presentation at Los Caballeros Sports Village/Condominiums Mayor Harper
October 12 Attended the OCTA Finance Committee Meeting
October 13 Attended the OCTA Transit Committee Meeting
October 15 Attended the Fire Department Open House Event

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY

Mayor Harper adjourned the meeting at 8:11 pm to the next Regular Meeting of the Fountain Valley City Council on November 1, 2022 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley. ________________________________________________________________________________________________________________________________ Patrick Harper, Mayor
Attest:
___________________________
Rick Miller, City Clerk

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: November 1, 2022
Members of the City Council
SUBJECT: Approval of an Agreement between the City of Fountain Valley and the City of Anaheim for Urban Area Security Initiative (UASI) Grant Participation
Three-Year Strategic Goals
☐ Enhance 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
☒ Not applicable
EXECUTIVE SUMMARY:

The federal Department of Homeland Security (DHS) allocated $4,278,750 for the Fiscal Year 2021 Urban Area Security Initiative (UASI) Grant Program. These funds are utilized throughout county Fire and Law Enforcement agencies for projects complying with the goals and objectives of the UASI program.

Before submission of applications for grant funds, receipt of any equipment, or reimbursement for any authorized training, the attached agreement must be signed by the City Manager as our authorized agent and approved by the City Council.

Staff recommends the City Council approve the agreement, thereby allowing the City of Fountain Valley to benefit from the Fiscal Year 2021 UASI Grant Program.

DISCUSSION:

The Urban Area Security Initiative Grant Program was funded post 9/11 by the Department of Homeland Security. UASI funds in Orange County were allocated through the Santa Ana - Anaheim UASI. In 2014 the responsibility to act as the grant clearinghouse was assigned to the City of Anaheim, and the funds allocated to support UASI projects have been significantly reduced. During the fiscal years immediately following 9/11, the City of Fountain Valley benefitted from approximately $100,000 in UASI grant monies. These funds were used to procure equipment such as Urban Search and Rescue Equipment, 800 MHz Radios, EOC Laptops, and upgrades.

City Council Request
Approval of an Agreement between the City of Fountain Valley and the City of Anaheim for Urban Area Security Initiative (UASI) Grant Participation November 1, 2022

Furthermore, the funds were used to fund pre-approved training such as Rescue Systems, Incident Command System training, and Public Information Officer Courses.

Within the past five years, the City benefitted from county-wide UASI projects that provided funding for Motion computing tablets, dosimeters, Individual First Aid Kits (used during mass casualty incidents, active shooter), and ballistic protective armor.

In addition, the funds may be utilized for the following projects: Enhancing Cybersecurity: Enhancing the Protection of Soft Targets/ Crowed Places including election security; Regional Training and Exercise Program Enhance MultiJurisdictional/Inter-Jurisdictional All-Hazards Incident Planning, Response & Recovery; Maintenance of Training Simulators; Regional Training & Exercise Program for Law Enforcement and Fire. Strengthen Information Sharing and Collaboration Enhance; Enhance Community Resilience, Including Partnerships with Volunteers and Community Based Organizations and Programs Enhance the “ReadyOC” Preparedness Campaign; Regional Training & Exercise Program for Emergency Management.

FINANCIAL ANALYSIS
It is anticipated that the majority of future available funds will be used to reimburse specialized training for fire and police personnel. All other grant funds requested and/ or approved will be returned to City Council at a later date for project-specific approval.

ATTORNEY REVIEW:

The Attorney to the City has reviewed and approved the agreement.

ALTERNATIVES:

Alternative No. 1: Approve the Agreement between the City of Fountain Valley and the City of Anaheim for the transfer or purchase of equipment/ services or reimbursement of training costs for the Fiscal Year 2021 Urban Area Security Initiative (UASI) Grant Program.

Alternative No. 2: Do not approve the agreement between the City of Fountain Valley and the City of Anaheim for the transfer or purchase of equipment/ services or reimbursement of training costs for the Fiscal Year 2021 Urban Area Security Initiative (UASI) Grant Program.

City Council Request
Approval of an Agreement between the City of Fountain Valley and the City of Anaheim for Urban Area Security Initiative (UASI) Grant Participation November 1, 2022

RECOMMENDATION:

It is recommended that the City Council approve Alternative No. 1, thereby approving the agreement between the City of Fountain Valley and the City of Anaheim for the transfer or purchase of equipment/ services or reimbursement of training costs for the fiscal year 2021 Urban Area Security Initiative (UASI) Grant Program.

Prepared by: Michelle Rudaitis, Fire Marshal
Approved by: Ron Cookston, Fire Chief
Approved by: Maggie Le, City Manager
Attachment 1: UASI Grant Transfer Agreement

CITY OF FOUNTAIN VALLEY

CITY COUNCIL/FOUNTAIN VALLEY

HOUSING AUTHORITY

COUNCIL/AUTHORITY ACTION REQUEST
To: Honorable Mayor/Chair and Agenda Date: November 1, 2022 Members of the City Council/
Housing Authority
SUBJECT: Central Cities Navigation Center; Second Memorandum of Understanding among Fountain Valley, Garden Grove and Westminster and Cooperation Agreement between City and Housing Authority to Implement Funding for Purchase of Real Property for Development and Operation of Navigation Center in Garden Grove
Three-Year Strategic Goals
☒ Enhance 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
☐ Not applicable
EXECUTIVE SUMMARY:

The County of Orange Central Service Planning Area includes the cities of: Fountain Valley, Westminster, Garden Grove, Costa Mesa, Huntington Beach, Newport Beach, Santa Ana, Seal Beach, and Tustin. From that group, the cities of Fountain Valley, Garden Grove, and Westminster (“Three Cities”) have partnered to address homelessness and implement the County’s Continuum of Care. The Three Cities have worked toward selection of property for acquisition, development, and operation of the “Central Cities Navigation Center” (“CCNC”). In June 2022, the Three Cities entered into a Memorandum of Understanding between the Cities of Garden Grove, Fountain Valley, and Westminster to Cooperate on the Development of a Navigation Center for the Central Orange County Service Planning Area (“First MOU”) to undertake the initial steps toward development of the CCNC. The Three Cities have negotiated the terms of a Memorandum of Understanding for the Central Orange County Service Planning Area Cities of Garden Grove, Fountain Valley and Westminster (“Second MOU”) to continue implementation and identify their respective funding obligations (Attachment 2). The City of Garden Grove is under contract to buy certain real property located at 13871 West Street in Garden Grove (“CCNC Site”) for development and operation of the CCNC. Also, Garden Grove will receive separate funding from the County for the CCNC. Under the Second MOU, the City’s share of costs to acquire the CCNC Site will be up to $940,000 of the $5,650,000 purchase price.

Central Cities Navigation Center Funding
November 1, 2022

Addressing homelessness is a priority, and finding a suitable site for a navigation center can be difficult; during implementation of the First MOU, the Three Cities concurred on the selection of the CCNC Site in Garden Grove for operation of the CCNC. Staff recommends the City Council authorize staff to move forward with the CCNC project and approve the Second MOU, which will prioritize and address homelessness in the communities.

In addition to the Second MOU, staff recommends the City and Housing Authority enter into a Cooperation Agreement (Central Cities Navigation Center) (“Cooperation Agreement”) under which the City will make a loan to the Housing Authority with funds sourced from the General Fund Reserve, and the Housing Authority will repay the City from available funds in its housing successor’s low and moderate income housing fund (“LMIHAF”), subject to the requirements under Health and Safety Code (“HSC”) Section 34176.1 (Attachment 3). The Cooperation Agreement also will authorize the Housing Authority to fund part of the City’s subsequent payments under the Second MOU, subject to action each fiscal year in compliance with HSC Section 34176.1.

DISCUSSION:

Homelessness is a challenge for many cities, as resources and funding are limited locally. In an effort to leverage resources and be proactive in addressing the needs of the communities’ most vulnerable residents, under the First MOU, the Three Cities partnered and authorized staff time and resources to plan for development and operation of a navigation center. The federal, state, county, and local legislative purposes of navigation centers are to provide a place for homeless persons and families and those at risk of homelessness to connect with service providers to locate permanent housing and enroll in job readiness training, educational programs, financial management workshops, life-skills training, and receive health care and mental health services.

The Central Cities Navigation Center would provide emergency housing and wrap-around services to individuals experiencing homelessness.

The Second MOU, if approved by the Three Cities, will govern the operation of the CCNC and any future Annual Terms of payment as described in the Second MOU. In sum, the Three Cities are committing to the purchase of the CCNC Site, completing tenant improvements, and support for operation of the CCNC for a minimum period of 10 years. On September 13, 2022, the Garden Grove City Council unanimously approved entering into a purchase and sale agreement to acquire the CCNC Site; escrow is pending and anticipated to close by November 7, 2022.

Garden Grove approved the Second MOU on October 11, 2022; and on September 28, 2022 Westminster approved $4 million to pay its initial share for acquisition and start-up of the CCN and also approved the Second MOU on October 26, 2022.

The CCNC Site is a parcel 18,166 square feet (“sf”) in size and improved with an existing 11,363 sf industrial warehouse building that was constructed in 1964, is located within the M1- Industrial Zone with an Emergency Shelter Housing Overlay Zone, and is a “by right” development. As currently proposed, the CCNC will have 85 beds and provide the following supportive services and amenities (Attachment 4):

Central Cities Navigation Center Funding
November 1, 2022

 Men's, women's and couple's dorms and lavatories
 Warming kitchen
 Laundry room
 Dining and outdoor lounge areas
 Check-in and staging areas
 Lockers for personal items
 Staff and service areas
 1-on-1 case management
 Mental health and stabilization services/resources
 Substance use counseling and stabilization services/resources  Outpatient health services
 Education services
 Employment assistance and job training
 Life skills development
 Transportation
In addition to the Three Cities’ funding under the Second MOU, the County of Orange issued a commitment letter of $11.3 million to Garden Grove (Attachment 5) for development and operation of the CCNC. Garden Grove and the County will enter into a separate MOU to fund $5.3 million for tenant improvements and $625,000 annually for 10 years ($6,250,000) for operation and maintenance of the CCNC.

The City’s share of costs under the Second MOU will total about $4.26 million over the 10-year period. This includes its share of acquisition, start-up, tenant improvements, and anticipated operations and maintenance costs over 10 years. The City’s estimated share of operations cost for the first year is $260,287; this figure will escalate 3% per year.

As the City Council and Housing Authority will recall, the Housing Authority is organized and exists under the California Housing Authorities Law, HSC Section 34200, et seq. (“HAL”) and serves as the “housing successor” to the dissolved Fountain Valley Agency for Community Development under HSC Section 34170, et seq. (“Housing Successor Law”). Under HSC 34176.1(c)(2), “[t]wo or more housing successors within a county, …, within 15 miles of each other, or that are in contiguous jurisdictions may enter into an agreement to transfer funds among their respective Low and Moderate Income Housing Asset Funds” for certain authorized purposes, which may include a navigation center, regional homeless center, and other purposes authorized in that statute. Also, under the HAL and Housing Successor Law, the Housing Authority may cooperate with the City on an annual basis to fund affordable housing, including as a source under the Second MOU. As provided in the Cooperation Agreement, in any fiscal year, a housing successor may fund from the LMIHAF up to (i) $1 million for transfer to a receiving housing successor under subsection (c)(2), and (ii) $250,000 for homelessness prevention and rapid rehousing services under subsection (a)(2), all subject to available funds and annual findings.

Central Cities Navigation Center Funding
November 1, 2022

In connection with the Second MOU, if approved, staff requests the City Council allocate $940,000 from the General Fund Reserve to a newly created account for the CCNC. The figure $940,000 is an estimate to fund the City’s share of acquisition of the CNCC Site and start-up costs, and, remaining funds, if any, will cover anticipated expenses or operations and maintenance. Under the Cooperation Agreement, if approved, the City would loan this amount to the Housing Authority and the loan would be repaid to the City from LMIHAF funds subject to the legal requirements. As noted above, on a fiscal year basis the City and Housing Authority will cooperate and may amend the Cooperation Agreement to appropriate LMIHAF funds, and concurrently the Housing Authority in its discretion may negotiate an agreement between the transferring and receiving housing successors related to funding the CCNC, which may satisfy some of the City’s payment obligations under the Second MOU.

In furtherance of the objectives under the Cooperation Agreement, the loan will allow time for the statutory requirements to be met while meeting the City’s initial funding under the Second MOU. A housing successor that intends to transfer and/or receive LMIHAF funds, HSC Section 34176.1(c)(2) must meet certain conditions:

1. Each participating housing successor has made a finding based on substantial evidence, after a public hearing, that the agreement to transfer funds will not cause or exacerbate racial, ethnic, or economic segregation.

2. The development to be funded shall not be located in a census tract where more than 50 percent of its population is very low income, unless the development is within onehalf mile of a major transit stop or high-quality transit corridor as defined in paragraph (3) of subdivision (b) of Section 21155 of the Public Resources Code.

3. The completed development shall not result in a reduction in the number of housing units or a reduction in the affordability of housing units on the site where the development is to be built.

4. A transferring housing successor shall not have any outstanding obligations pursuant to Section 33413 [replacement housing of a former redevelopment agency].

5. No housing successor may transfer more than one million dollars ($1,000,000) per fiscal year.

6. The jurisdictions of the transferring and receiving housing successors each have an adopted housing element that the Department of Housing and Community Development [“HCD”] has found pursuant to Section 65585 of the Government Code to be in substantial compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code and have submitted to the Department of Housing and Community Development the annual progress report required by Section 65400 of the Government Code within the preceding 12 months.

7. Transferred funds shall only assist rental units affordable to, and occupied by, households earning 60 percent or less of the area median income.

Central Cities Navigation Center Funding
November 1, 2022

With the exception of six (6) above, there are factual bases for the housing successors of the Three Cities to meet these conditions. On October 13, 2022, HCD issued to the City of Fountain Valley certification of its Housing Element. Similar to many of the jurisdictions in the SCAG region, both Garden Grove and Westminster are well into the housing element adoption process and anticipate HCD certification in the coming weeks or months. The Cooperation Agreement will allow for the loan from the City’s General Fund Reserve to the Housing Authority that will repaid once the housing element condition is met by Garden Grove and Westminster, at which time staff will present for consideration an amendment to the Cooperation Agreement and the LMIHAF transfer agreement to be negotiated by the respective housing successors pursuant to HSC Section 34176.1.

As noted, housing successors may allocate and expend up to $250,000 per fiscal year “for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or mediumterm rental assistance, contributions toward the construction of local or regional homeless shelters, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.” With no prejudgment of annual budget decisions, over a 10-year period cumulatively, this could be up to $2,500,000. Such appropriation, if approved and paired with the independent decision each fiscal year to transfer of LMIHAF as described above, could, subject to statutory requirements and through cooperation between the City and Housing Authority, meet some of the City’s financial obligations under the Second MOU and subsequent implementing agreements, if any.

OUTREACH
As part of outreach efforts, Garden Grove held webinars in June and July, and held community meetings in August, one to engage the immediate neighborhood surrounding the CCNC Site and the other for the general community, all to inform the public, solicit comments and discuss the proposed navigation center. Westminster also held a workshop on October 10, 2022 to discuss the CNCC with their residents and businesses. Fountain Valley representatives attended and participated in the workshops held by our partner cities and a local workshop is tentatively scheduled for November 16, 2022.

FISCAL REVIEW:

Funding for the acquisition of the Navigation Center would require the creation of a Loan Receivable from the Housing Authority (100.00.00000.12403) and a Loan Payable to the General Fund (231.00.00000.28001) in the amount of $940,000. The short-term loan will be administered at a 0% interest rate. In addition, a new program 30326, Navigation Center, will be created under the Housing Authority. A Budget adjustment of $940,000 is requested for Miscellaneous Capital (231.30.30326.56002). Future operating costs will be addressed at midyear, or with the annual budget process.

Central Cities Navigation Center Funding
November 1, 2022

PUBLIC NOTIFICATION:

A Notice of Hearing was published in the Orange County Register on October 18, 2022 to inform the public, and to solicit public comments and testimony, about the Second MOU and Cooperation Agreement. The Notice was also posted in several places in the community; and, this agenda item was included in the posted agenda for this meeting in compliance with the Brown Act.

ATTORNEY REVIEW:

The City Attorney reviewed this Staff Report and Attachments. He negotiated the Second MOU on behalf of the City, and special counsel from Stradling Yocca Carlson & Rauth prepared the Cooperation Agreement.

ALTERNATIVES:

1. Approve the loan from General Fund to the Housing Authority in the amount of $940,000 to support the purchase of a Central Cities Navigation Center to address homelessness, the related cooperative agreement between the City and Housing Authority and adopt Resolution No XX approving the second MOU; and approve the Housing Authority budget adjustment for start-up costs.

2. Approve the Second MOU, but not the Cooperation Agreement, which would cause the City to not make a loan to the Housing Authority and be obligated to fund in full the City’s funding obligations under the Second MOU.

3. Approve the Second MOU, but not the Cooperation Agreement, and instruct staff to bring back for consideration a cooperation agreement and an LMIHAF transfer agreement for consideration and action after Garden Grove receives HCD certification of their housing element.

4. Do not approve the Second MOU (or the Cooperation Agreement) with the development package for the acquisition of the CCNC Site, start-up, tenant improvements, and operation of the Central Cities Navigation Center.

5. Continue this action item for further and later discussion, albeit, as noted, the escrow for Garden Grove’s acquisition of the CCNC Site is scheduled to occur by or before November 7, 2022.

Central Cities Navigation Center Funding
November 1, 2022

RECOMMENDATION:

Staff recommends the City Council approve Alternative #1 by Adoption of the Joint Resolution.

Prepared by: Omar Dadabhoy, Deputy City Manager/ Community Development Director
Reviewed by: Sherry Johnson, Interim Finance Director
Approved by: Maggie Le, City Manager and Housing Authority Executive Director Attachments:

1. Joint City Council and Housing Authority Resolution No. XX Approving the Second MOU and the Cooperation Agreement.

2. Second MOU (Memorandum of Understanding for the Central Orange County Service Planning Area Cities of Garden Grove, Fountain Valley, and Westminster)

3. Cooperation Agreement (Central Cities Navigation Center) between City and Housing Authority

4. Draft Schematic Plan for the CCNC

5. Commitment Letter from County of Orange for funding CCNC

RESOLUTION NO. ____

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY AND THE FOUNTAIN VALLEY HOUSING AUTHORITY APPROVING

A MEMORANDUM OF UNDERSTANDING FOR THE CENTRAL ORANGE

COUNTY SERVICE PLANNING AREA CITIES OF GARDEN GROVE,
FOUNTAIN VALLEY, AND WESTMINSTER (“SECOND MOU”) AND A

COOPERATION AGREEMENT (CENTRAL CITIES NAVIGATION CENTER) (“COOPERATION AGREEMENT”); AUTHORIZING THE CITY MANAGER TO

CARRY OUT THE SECOND MOU AND THE CITY MANAGER AND EXECUTIVE DIRECTOR TO CARRY OUT THE COOPERATION AGREEMENT; AND

MAKING CERTAIN OTHER FINDINGS IN CONNECTION THEREWITH
WHEREAS, the City of Fountain Valley is a California municipal corporation and general law city (“City”); and
WHEREAS, the City’s adopted Housing Element of the General Plan (2021-2029 6th Cycle) was determined to be “in full compliance with State Housing Element Law” (Title 7, Division 1, Article

10.6, Chapter 3, Section 65580, et seq. of the Government Code) by the State of California, Department of Housing and Community Development on October 13, 2022; and WHEREAS, the Housing Element identifies the City’s housing conditions and needs, establishes the goals, objectives, and policies that are the foundation of the City’s housing strategy, and provides an array of programs to create sustainable, mixed-income neighborhoods across the City (“Housing Element”); and
WHEREAS, the City is authorized to assist the provision of housing opportunities and address homelessness and State law mandates that cities create opportunities to provide for affordable housing to all economic segments of the community, and the City has committed in the Housing Element, and under other laws, to continue implement regional efforts to address homelessness in the community and throughout Orange County; and
WHEREAS, the Fountain Valley Housing Authority is a California housing authority formed by the City Council acting under the California Housing Authorities Law (“HAL”) set forth in Part 2 of Division 24, Section 34200, et seq., of the Health and Safety Code (“HSC”); further, Authority serves as the “housing successor” to the former Fountain Valley Agency for Community Development, a dissolved redevelopment agency (“Former Agency”) pursuant to Part 1.85 of Division 24 of the HSC, in particular Sections 34176 and 34176.1 thereof (“Housing Successor Law”) and the statutes therein that reference and incorporate certain affordable housing laws set forth in HSC Section 33000, et seq. that survived the dissolution of all California redevelopment agencies and remain effective as to housing successors, including the Housing Authority (“CRL”); and WHEREAS, the Housing Authority serving as housing successor maintains, among its accounts, a low to moderate income housing asset fund (“LMIHAF”), expenditures from which are subject to the Housing Successor Law; and
WHEREAS, the City and Housing Authority are authorized to cooperate in providing affordable housing and to address and fund programs and projects to address homelessness in furtherance of the Housing Element; and

WHEREAS, the City and Housing Authority desire to enter into that certain Cooperation Agreement (Central Cities Navigation Center), which is attached to this Resolution as Exhibit A (“Cooperation Agreement”); and
WHEREAS, the City desires to enter into that certain Memorandum of Understanding for the Central Orange County Service Planning Area Cities of Garden Grove, Fountain Valley and Westminster (“Second MOU”), which is further described therein and in the Cooperation Agreement; and
WHEREAS, capitalized terms in this Resolution are as defined in the Cooperation Agreement; and
WHEREAS, reference is made to the Recitals and provisions in the attached Cooperation Agreement that are incorporated herein for the background and facts relating to the “Central Cities Navigation Center” and the terms and conditions of the Second MOU; and WHEREAS, the City and Housing Authority desire to cooperate and agree about certain components of and sources of funding necessary to meet the City’s financial obligations under the Second MOU, including the next commitment and expenditure of approximately and up to Nine Hundred and Forty Thousand Dollars ($940,000) related to Garden Grove’s acquisition of certain improved real property located in the City of Garden Grove at 13871 West Street upon which the Central Cities Navigation Center will be developed and operated (“CCNC Site”); and WHEREAS, in order to achieve the goals and objectives of the First MOU and the goals and objectives of Fountain Valley, Garden Grove, Westminster under the Second MOU, the City Council desires to approve the Second MOU with and among the Three Cities; and WHEREAS, the City and Housing Authority desire to enter into the Cooperation Agreement to facilitate in the successful implementation of the Second MOU; and WHEREAS, in order to achieve mutual goals of the City and Housing Authority to address homelessness in the community of Fountain Valley and the surrounding cities of Garden Grove and Westminster, the City desires to loan to the Housing Authority certain funds, and the Housing Authority desires to repay such loan, from monies sourced from its LMIHAF subject to the terms and conditions of the Cooperation Agreement and implementing instruments; and WHEREAS, by the Cooperation Agreement, the City and Housing Authority desire to state their mutual intention and objective for the Housing Authority to continue to fund all or part of the ongoing payment obligations of the City under the Second MOU, subject to annual consideration and action each fiscal year to provide such funding in compliance with applicable law, in particular HSC Section 34176.1; and
WHEREAS, each and all of the foregoing objectives and policies will achieve the City and Housing Authority’s policies and objectives to provide affordable housing and to fund facilities and services to address and resolve homelessness, in cooperation with the other participating cities under the CCNC MOU, which will implement the goals of the City in the Housing Element, and the Housing Authority, as empowered by the Government Code, HAL, Housing Successor Law, CRL, and other applicable laws and regulations; and
WHEREAS, the Authority and City have noticed a public hearing for consideration and action on the Second MOU and the Cooperation Agreement. The purpose of the public hearing is to obtain

public comment and testimony concerning such agreements, which, if approved after the public hearing and consideration of all testimony and materials presented in this matter, would (i) carry out Second MOU by the Three Cities, and (ii) commit the City and/or Authority to fund part of the costs for acquisition of land for and development and operation of the Central Cities Navigation Center to be located and operated in Garden Grove and jointly for the benefit of the communities of the three cooperating cities, Fountain Valley, Westminster and Garden Grove; and
WHEREAS, the City Council has considered all terms and conditions of the Second MOU, and believes such agreement is in the vital and best interest of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state and local laws and requirements, and by this Resolution the City Council desires to approve the Second MOU; and
WHEREAS, the City Council and Housing Authority have considered all terms and conditions of the Cooperation Agreement and believe that the CCNC Initial Laon and other rights and obligations set forth in the Cooperation Agreement are in the vital and best interest of Fountain Valley and the health, safety and welfare of the residents, and in accord with the public purposes and provisions of applicable federal, state and local laws and requirements and by this Resolution the City Council and Housing Authority desire to approve the Cooperation Agreement; and WHEREAS, under the California Environmental Quality Act, Public Resources Code section 21000, et seq., including section 21080, and the implementing regulations in Title 14 Code of Regulations, section 15000, et seq., including section 15268 (together, “CEQA”), the City of Garden Grove’s acquisition, improvement, and operation of the CCNC on the CCNC Site located in Garden Grove is a land use and project by right as authorized in an adopted overlay zone of a specific plan, and such overlay zone and specific plan were previously studied and findings made in compliance with CEQA, and thereby that City of Garden Grove’s approval of the Second MOU was a ministerial action that implements a by right facility to serve the homeless and such agreement commits funding through governmental mechanisms, and no action under CEQA was required in its consideration and approval thereof; by this Joint Resolution, the City’s consideration and action to approve the Second MOU, and the City and Housing Authority’s consideration and action to approve the Cooperation Agreement, too are ministerial and the agreements commit funding through governmental mechanisms to implement the CCNC located in Garden Grove for the benefit of the Three Cities, and thereby no further action or findings are necessary under CEQA by Fountain Valley related to approval of the Second MOU and Cooperation Agreement.

NOW, THEREFORE, the City Council of the City of Fountain Valley and the Fountain Valley Housing Authority do hereby resolve as follows:

SECTION 1
The City Council and Housing Authority find and determine the foregoing recitals are true and correct and are a substantive part of this Resolution.

SECTION 2
The City Council approves the Memorandum of Understanding for the Central Orange County Service Planning Area Cities of Garden Grove, Fountain Valley and Westminster among the Three Cities.

SECTION 3
The City Council and Housing Authority approve the Cooperation Agreement (Central Cities Navigation Center) between the City and Housing Authority’
SECTION 4
As to the City for the Second MOU and the City and Housing Authority for the Cooperation Agreement, the City Manager and Executive Director, as applicable, are authorized to approve such changes mutually agreed by the applicable party or parties and necessary as are minor and in substantial conformance with the form of the Second MOU and Cooperation Agreement that have been submitted herewith. The City Manager and Executive Director and the City Clerk and Secretary, as applicable, are hereby authorized to execute and attest the Second MOU and Cooperation Agreement on behalf of the City and Housing Authority. In such regard, the City Manager and Executive Director (or authorized designees), as applicable, are authorized to sign the final version of the Second MOU and Cooperation Agreement after completion of non-substantive, minor revisions, if any. Copies of the final form of the Second MOU and Cooperation Agreement, when duly executed and attested, shall be placed on file in the office of the City Clerk. Further, the City Manager and Executive Director (or authorized designees), as applicable, are authorized to implement the Second MOU and Cooperation Agreement and take all further actions and execute all documents referenced therein and/or necessary and appropriate to carry out such contract including any and all implementing agreements thereto. The City Manager and Executive Director (or authorized designees) are authorized to the extent necessary during the implementation of the Second MOU and Cooperation Agreement to make technical or minor changes and interpretations thereto after execution, as necessary to properly implement and carry out each agreement as applicable; provided any and all such changes shall not in any manner materially affect the rights and obligations of the City or the Housing Authority thereunder and approved hereby.

SECTION 5
In addition to the authorization of Section 4. above, the City Manager and Executive Director (or authorized designees), as applicable, are authorized, on behalf of the City and Housing Authority, to sign all other documents necessary or appropriate to carry out and implement the agreements, including causing the issuance of warrants in implementation thereto, and to administer the City’s and Housing Authority’s applicable obligations, responsibilities and duties to be performed under such agreements.

SECTION 6
The City Clerk and Secretary shall certify to the adoption of this Joint Resolution.

PASSED, APPROVED AND ADOPTED THIS 1st DAY OF November, 2022.

ATTEST:

Rick Miller, City Clerk Patrick Harper, Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
Colin Burns, Attorneys for the City
ATTACHED: “EXHIBIT A”

“Exhibit A”

SECOND MEMORANDUM OF UNDERSTANDING AND COOPERATION AGREEMENT

1 MEMORANDUM OF UNDERSTANDING FOR THE CENTRAL

ORANGE COUNTY SERVICE PLANNING AREA CITIES OF

GARDEN GROVE, FOUNTAIN VALLEY AND WESTMINSTER
This MEMORANDUM OF UNDERSTANDING (“Agreement”) is dated as of October __, 2022 (“Effective Date”), and entered into by and among the Cities of Garden Grove, Fountain Valley, and Westminster, each of which is a municipal corporation organized and existing under California law (cumulatively the “City Parties” or “Parties,” and at times individually a “City Party”), with reference to and in consideration of the following:

WHEREAS, like many other regions in California, the County of Orange (“Orange”) has seen a rapid and troubling growth in the homeless population over the past several years, a condition that has been difficult to address given the high cost of housing and property in the area, and the shortage of emergency, transitional, and affordable housing available in the County to serve this population;
WHEREAS, as a result, local jurisdictions throughout the County have experienced increased incidents of unlawful camping and loitering activities in and upon portions of the public rights-of-way, parks, and other public facilities (“Public Property”) in violation of local anticamping, anti-loitering, and/or park closure ordinances and regulations (“Anti-Camping Ordinances”);
WHEREAS, the use of Public Property in this manner creates health and safety risks to homeless persons due to traffic hazards, exposure to weather, inadequate sanitation, and other conditions detrimental to their wellbeing, and negatively impacts the health, safety, and general welfare of the community by degrading the environmental and physical condition of such Public Property, increasing risks associated the spread of illnesses, and frustrating the public purpose for which such Public Property is dedicated;
WHEREAS, on a broader scale, the County is a complex jurisdiction of interconnected systems, many of which have been impacted by the homeless crisis in the region, including but not limited to health care, criminal justice, child welfare, public transportation, economic and social, and legislative and political systems;
WHEREAS, in efforts to address this crisis, the County established an integrated Continuum of Care (“CoC”) to guide homeless individuals and families through a comprehensive array of services and housing designed to prevent and end homelessness; WHEREAS, to better coordinate access points, assessments, resources, and programs serving persons experiencing homelessness, the CoC divided the County into three (3) geographic “Service Planning Areas” (or “SPAs”), with the “Central Service Planning Area” (“Central SPA”) including the cities of Costa Mesa, Garden Grove, Fountain Valley, Santa Ana, Seal Beach, Westminster, Newport Beach, Huntington Beach, and Tustin;

2 WHEREAS, in furtherance of the health, safety, and well-being of all their residents, to return and preserve Public Property for its intended purpose, the City Parties, located within the Central SPA, have worked together cooperatively and in good-faith towards developing a regional solution to the current homeless crisis within their respective jurisdictions; WHEREAS, as a result of such efforts, the City Parties have been awarded certain grant funds, and certain additional funds pledged to be made available through the County of Orange, towards the acquisition, construction, and operation of a new navigation center facility to be located within the boundaries of the City of Garden Grove, and intended to exclusively serve the unsheltered homeless population currently residing within the jurisdiction of the City Parties; WHEREAS, the City Parties desire to formalize the terms and conditions by which the above-referenced funds are aggregated, and combined with additional funds provided by each City Party from alternative sources, to finance the acquisition, construction, and operation of the new navigation center facility;
WHEREAS, the City Parties additionally desire to memorialize the terms and conditions by which: the new navigation center facility will be operated; the City Parties will equitably share access to the capacity provided by such new navigation center facility, as well as the capacity provided by existing shelter facilities in located within the boundaries of the City Parties; the City Parties will equitably share the costs and responsibilities associated with the acquisition, construction, operation, and maintenance of the new navigation center facility; and other related matters in furtherance of their common purpose;
WHEREAS, in addition to addressing the needs of homeless persons through the provision of overnight shelter, the City Parties covenant to work together, in furtherance of the CoC, towards developing and increasing the Central SPA’s inventory of long-term affordable and supportive housing units, such that homeless persons receiving services under this Agreement may transition from temporary or emergency shelter facilities, and into long-term and stable housing solutions; and
WHEREAS, each Party has caused this Agreement to be duly approved by its respective governing body, and by so doing, has found and determined that this Agreement furthers the health, safety, and general welfare of their respective residents.

NOW THEREFORE, in consideration of the mutual covenants and conditions contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. PURPOSE
This Agreement establishes a multi-jurisdictional memorandum of understanding for establishing, constructing, developing, maintaining, providing, operating, and facilitating the provision of overnight shelter in designated public facilities (termed “Navigation Center” below), and the

3 provision of certain services at such facility, to homeless and chronically homeless adults, children, and families located within the Central Service Planning Area of Orange County, California. This Agreement defines the respective rights and responsibilities of the Parties with respect to the financing, implementing, operating, and the provision of Services, as defined below, at the Navigation Center.

2. DEFINITIONS
In addition to the other terms and phrases defined elsewhere in this Agreement, the following key capitalized terms and phrases used throughout this Agreement shall have the meaning assigned in this Section.

2.1. “Annual Term” shall mean the fiscal year beginning July 1 and ending on July 30 of each year during the Term of this Agreement.

2.2. “City Program Costs” shall mean and refer to that portion of the Program Costs that are not funded by an alternative funding source described in Exhibit “A”, and that will be paid by the City Parties pursuant to the Cost Allocation Plan, as such City Program Costs are further detailed in Exhibit “C”.

2.3. “Cost Allocation Plan” shall mean and refer to the formula utilized to determine the Party Shares of the City Program Costs, as such formula is detailed in Exhibit “D”.

2.4. “Center Operator” shall mean and refer to the third-party contracted by the Host City to provide comprehensive and “turnkey” day-to-day management and operation of the Navigation Center.

2.5. “FF&E” shall have the mean and refer to furniture, fixtures and equipment including, beds, desks, mattresses, linens, indoor and outdoor storage equipment, office equipment, tables, chairs, kitchen supplies, and the like.

2.6. “Guests” shall mean and refer to homeless and chronically homeless adults, children, and families located within the Program Area.

2.7. “Guest Capacity” shall mean and refer to the number of beds provided in the Navigation Center, as detailed in Exhibit “B” [or section 4.2, see comment].

2.8. “Host City” shall mean and refer to the City of Garden Grove.

2.9. “Navigation Center” shall mean and refer to the new public facilities to be acquired, constructed, and operated in the Host City, and the Guest Capacity available at that location set forth in Exhibit “B” under this Agreement.

2.10. “Operating Agreement” shall mean and refer to the contract between the Host City and Center Operator for the operation of the Navigation Center.

4 2.11. “Operating Plan” shall mean and refer to the plan approved by the Host City, Party Representatives, and a Center Operator, that details the terms, conditions, and standards by which Services are made available to Guests at the Navigation Center.

2.12. “Participating City” shall mean and refer to the City Parties which are not a Host City.

2.13. “Party Representative” shall mean and refer to the highest-ranking appointed executive official for each of the Parties, or his/or her duly authorized designee.

2.14. “Party Share” shall mean and refer to that portion of the City Program Costs allocated to each City Party in accordance with the Cost Allocation Plan, as detailed in Exhibit D(1) and (D)(2).

2.15. “Program” shall mean and refer to the Parties’ cooperative financing and planning for the acquisition, construction, operation and the provision of Services at the Navigation Center, and the cooperative sharing among the Parties of Guest Capacity at the Navigation Center.

2.16. “Program Area” shall mean and refer to the area within the city limits of the City Parties.

2.17. “Program Costs” shall mean and refer to the costs incurred by the Parties in the acquisition of the Navigation Center site and the completion of modifications or capital improvements thereto, and annually to operate the Navigation Center during the Term (as defined below).

2.18. “Program Funds” shall mean and refer to all funds paid by or to the Parties under this Agreement, including but not limited to grant funds or County funds received by the Parties and contributed towards the Program.

2.19. “Program Property” shall mean and refer to all real and personal property purchased or acquired with Program Funds.

2.20. “Program Treasurer” shall mean and refer to the Party selected by the other Parties to serve as the treasurer, trustee, and manager of all Program Funds.

2.21. “Services” shall mean and refer to the provision of overnight shelter and other sanitation, nutritional, health, educational, supportive, and/or basic human services at the Navigation Center, as described in an Operating Plan.

3. TERM

3.1. General Term. This Agreement shall be effective as of the date which the last of the Parties has executed the same, which shall be inserted as the Effective Date in the first paragraph above, and shall remain in full force and effect during the construction period of a New Navigation Center and a full ten (10) year operation period or/ until October 31, 2033, at which

5 point this Agreement shall automatically renew and continue in effect for two (2) consecutive fiveyear terms, the last of which shall expire on the date that is ten (10) years from October 31, 2033 (each an “Renewal Term,” and cumulatively the “Term”). Options to extend shall be implemented at least 90 days prior to the then-scheduled expiration date by mutual agreement of the Parties in writing, which extension may be approved by the authority of the City Manager of each Party; provided there is no material change of terms for such extended Term. This Agreement may be earlier terminated in accordance with the provisions of this Agreement.

3.2. Termination by City Parties.
a) Notice and Effective Date. Notwithstanding Section 3.1, any City Party, other than a Host City, may terminate its participation in this Agreement by providing one year’s written notice to all other Parties on or before the last day of any Annual Term (June 30), and following timely payment of the “Termination Fee.” This Agreement shall thereafter terminate as to the Party providing such notice at 11:59 p.m. on the last day of the immediately ensuing Annual Term.
b) Termination Fee as Liquidated Damages. The Termination Fee shall be equal to five times (5x) the most recent Party Share paid by the terminating City Party, plus an additional five percent (5%) of the resulting factor to account for increases in the consumer price index. The Termination Fee shall be paid by the terminating City Party to the Program Treasurer not later than six (6) months before the effective date of termination. Failure to timely remit the Termination Fee shall render a City Party’s notice of termination ineffective. The Parties acknowledge and agree that the Termination Fee shall constitute liquidated damages and not penalties, and are in addition to all other rights of the Parties, including the right to call a default of this Agreement. The Parties further acknowledge that: (i) the amount of loss, costs, or damages likely to be incurred by the Parties resulting from a City Party terminating this Agreement before the end of the Term is incapable or is difficult to precisely estimate; (ii) the Termination Fee to be paid by any City Party bears a reasonable relationship to, and is not plainly or grossly disproportionate to, the probable losses or costs likely to be incurred by the other Parties by virtue of a City Party’s termination of this Agreement before the end of the Term; (iii) one of the reasons for the Parties reaching an agreement as to such amounts is the uncertainty regarding the question of actual losses, costs, or damages to be incurred by the Parties in such event; and (iv) the Parties are sophisticated business parties, have been represented by sophisticated and able legal counsel, and have negotiated this Agreement at arm's length.
c) Continuing Enforceability. Following the effective date of termination, the terminating City Party shall have no further obligations or rights with respect to this Agreement, except as expressly provided otherwise herein. Should any such terminating City Party desire to renew its participation in this Agreement in subsequent Annual Terms, such Party shall be subject to Section 3.6.

3.3. Termination by Host City
a) Notice and Effective Date. Notwithstanding Sections 3.1 and 3.2, the Host City may terminate their participation by providing six (6) months written notice to all other Parties

6 as follows: written notice of termination shall be provided on or before January 1 of each Annual Term, and this Agreement shall thereafter terminate as to the Host City providing such notice at 11:59 p.m. on the last day of the same Annual Term; for example, notice of termination provided before January 1, 2020, shall be effective as of June 30, 2020. b) Continued Operation of Navigation Center. As a condition precedent to the effectiveness of a Host City’s termination of this Agreement, such that a Navigation Center will no longer be operated within its jurisdiction, the Host City shall comply with all terms, conditions, and restrictions of any grant funding, County funding and any other grants or similar funding provided to the Program and/or Host City relative to the Navigation Center, and any Program Property in the possession and control of the Host City that was not acquired with such grant funds, and thus is not bound by associated grant restrictions, shall be managed and disposed of as directed by the Party Representatives. In the event of such Host Party’s termination, the City Parties shall work together cooperatively and in good faith to satisfy the shelter needs of the Program Area following the Host City’s termination. No Party shall be compelled under this Agreement to remain or serve as a Host City.

c) Continuing Enforceability. The Host City’s notice of termination shall indicate whether the Host City is entirely terminating its participation in this Agreement, or whether it will remain a City Party. If the first, the terminating Host City shall be subject to Section 3.2(c).

If the Host City is to remain a City Party, following the effective date of termination the Host City will treated in all respects as a City Party under this Agreement, and subject to any adjustment to its Party Share and Cost Allocation Plan.

4. NAVIGATION CENTER

4.1 City Navigation Center. The Parties desire to work cooperatively and combine their respective resources for purposes of providing and coordinating the provision of Services to Guests at Navigation Center located in the Program Area, and to acquire, construct, develop, and operate a Navigation Center.

4.2 Navigation Center and Guest Capacity. For purposes of this Agreement, the Navigation Center, and the anticipated Guest Capacity, are set forth in Exhibit “B” to this Agreement.

4.3 Change in Navigation Center. The Parties may, from time to time, close a Navigation Center, construct an additional or replacement Navigation Center, or amend the Guest Capacity of any Navigation Center, and/or a Host City may terminate its participation in this Agreement. In such case, the Parties shall amend this Agreement to adjust the Cost Allocation Plan and Party Shares as appropriate.

4.4 Funding. Funding for the City Navigation Center subject to this Agreement shall be in accordance with Section 7.5(b)(1).

5. CONSTRUCTION AND MAINTENANCE OF NEW CENTER

7 5.1. Ownership. The Navigation Center shall be owned by the applicable Host City, together with any Program Property in the custody or possession of a Host City; provided the Navigation Center and Program Property shall be utilized by Host Cities exclusively for purposes consistent with this Agreement.

5.2. Design. The Host City shall have final authority over the design and construction of Navigation Center located in its jurisdiction, in accordance with each Host City’s ownership rights and plenary land use authority. Prior to a Host City’s commencement of construction of, or significant modifications or improvements to, a Navigation Center, the Party Representatives will be provided a reasonable opportunity to review and provide input on the proposed design and amenities of the Navigation Center, and the Host Cities will, in good faith, consider the input of the Party Representatives in finalizing the same.

5.3. Host City as “Lead Agency.” The Host City for the Navigation Center shall be the “lead agency” for purposes of improvements or modifications thereto, as well for the environmental review, acquisition, development, and construction of the Navigation Center, the installation of FF&E, and operation, cleaning, maintenance, or repair of the Navigation Center. a) Service Contracts. As approved by the Party Representatives, the Host City will be the “contracting party” to any written agreements with qualified professional(s), service providers, and/or licensed contractor(s) (“Contractor”) necessary for the development or operation of Navigation Center consistent with this Agreement.
b) Procurement Practices. A Party’s purchase or acquisition of Program Property, or a Host City’s retention of any Contractor, shall be governed by the procedural formalities and requirements of the Host City. The Parties agree that, to the extent practicable and not otherwise required by applicable law, Contractors should be selected after a competitive process that considers both price and capacity or qualifications to perform.

5.4. Minimum Housing Standards. The Navigation Center should comply with the building standards for emergency housing established by the California Department of Housing and Community Development, as the same may be amended from time to time, or if more stringent, and at the discretion of the Host City, the applicable building standards of the Host City (“Building Standards”).

5.5. Minimum Facilities and Amenities. The Navigation Center should be improved and equipped with the facilities and amenities commonly associated with public facilities of similar type and purpose as approved by the Party Representatives, in sufficient quantities necessary to serve the Guest Capacity for each Navigation Center.

5.6. Maintenance and Repairs. Host Cities will cause the Navigation Center to be regularly cleaned, maintained, and repaired in accordance with generally accepted standards, and as necessary to ensure compliance with the Building Standards. The Operating Agreements for the Navigation Center shall include terms and conditions requiring the Center Operators to comply with this Section.

8 5.7. Security. Each Host City will ensure that adequate security measures and policies are incorporated into the Navigation Center’s construction and operation, including but not limited to security plans, secured entrances, on-site security personnel, video recording equipment, adequate lighting, law enforcement patrols, and neighborhood safety controls. Detailed security procedures and protocols will be included in the Operating Plan developed by the Host City, Center Operator, and the Party Representatives, as described further below.

6. USE AND OPERATION OF NAVIGATION CENTER

6.1. Exclusive Purpose of Navigation Center. A Navigation Center subject to this Agreement will be used by the Parties exclusively for the purpose of providing Services to Guests located within the Program Area. The Parties agree to work cooperatively and in good faith, and to take such reasonable action(s) or precaution(s) as deemed necessary, to effectuate the purpose of this Section.

6.2. Use and Access of Navigation Center. In consideration for the City Parties’ payment of their respective Party Share, each City Party shall have the right to utilize an approximately equivalent percentage of its Party Share of total Guest Capacity in the Navigation Center. The Parties shall have access to and utilize the monitoring and logging system developed and operated by the County to track the real-time availability of Guest Capacity in the Navigation Center, and to make arrangements and reservations for the transportation of Guests thereto and therefrom. Parties utilizing Guest Capacity in Navigation Center shall comply with the applicable Operating Plan.

6.3. Length of Stay and Transitional Housing. The Host City shall have the authority to establish reasonable restrictions on the maximum length of stay for any individual Guest in a Navigation Center, which restriction shall be set forth in the Operations Plan. Any restrictions adopted pursuant to this Section by a Host City shall be consistent with those generally imposed by facilities of similar type, nature and purpose. Upon expiration of any length of stay imposed by a Host City, the Party from whose jurisdiction the Guest originated from shall provide transportation and otherwise facilitate the return of the Guest to said jurisdiction, subject to restrictions imposed by applicable laws. Consistent with the purposes of this MOU to provide a long-term solution to the unsheltered homeless population within the Program Area, the City Parties agree to work cooperatively and in good-faith towards facilitating the development of supportive short-term and permanent affordable housing units within their respective jurisdictions, such that Guests may be transitioned from the temporary shelter provided by Navigation Center to long-term housing.

6.4. Annual Review of Party Usage. The Guest Capacity utilized by each Party shall be reviewed not less than once per year in conjunction with the Annual Meeting and in light of the Annual Report and Annual Audit described below, and the results of this review shall be used for making any necessary adjustments to the Party Shares or the Cost Allocation Plan to ensure the Parties’ financial obligations hereunder accurately reflect the benefit derived; as well as to make any necessary revisions to the Operating Plans to further the goals and objectives of this Agreement. Notwithstanding the foregoing, during the first two (2) Annual Terms, the Party Representatives shall meet not less than once per quarter to review the matters described in this

9 Section; provided that such a review shall be conducted at any time during the Term upon a request by two-thirds (2/3) of the Party Representatives.

6.5. Center Operators. The Host City will enter into an Operating Agreement with a Center Operator for comprehensive and “turnkey” day-to-day management and operation of the Navigation Center located within its jurisdiction. Except as otherwise agreed to by the Parties, Center Operators shall be a non-profit organization with demonstrated experience operating similar facilities and providing similar services as contemplated in this Agreement, and shall be selected by the Host City following a competitive process, with the selection based on cost considerations, capacity to perform to the Services, qualifications and expertise, and such other matters deemed relevant by a Host City or the Party Representatives. A Host City’s selection of a Center Operator shall be subject to approval by the Party Representatives.

6.6. Operating Plan. The Host City shall develop an Operating Plan which shall govern the day-to-day management and operation of its Navigation Center, and shall be incorporated into the Operating Agreement for the Navigation Center. The Operating Plan must be approved by the Host City, the Center Operator, and the Party Representatives, and will address such matters as are detailed in Exhibit “F”, in addition to such other terms and conditions that may be directed by the Host City and the Party Representatives.

6.7. Operating Agreement. Prior to a Host City’s commencement of a solicitation for a Center Operator, the Party Representatives shall work cooperatively and in good faith to develop minimum experience and qualifications, as well as general standards, terms, and conditions to be included in an Operating Agreement necessary and appropriate to protect the Parties’ respective interests. In addition to any other terms or conditions that may be directed by a Host City or Party Representative, each Operating Agreement will, to the maximum extent permitted by law, require the Center Operator to defend, indemnify, and hold the Parties harmless from and against any and all claims or damage to person or property relating to or arising from the Center Operator’s management and operation of a Navigation Center. The terms and conditions of Operating Agreements shall be subject to approval by the Party Representatives.

6.8. Transportation Plan. Unless the Parties expressly agree on an alternative plan for the provision of transportation of Guests to and from the Navigation Center, Guests referred by each City Party shall separately provide for all transportation for Navigation Center Guests referred by such City Party for the duration of their stay at the Navigation Center and for their departure from the Navigation Center. The Parties shall each be responsible for maintaining contact with the Navigation Center Operator to ensure appropriate transportation for Guests originally referred from each City Party is provided in a timely manner to assist in working toward satisfaction of their Operating Plan.

6.9. Low-Barrier Access. The Navigation Center shall be considered “low barrier” facilities for purposes of Guest access, and any entry screening, barriers, or conditions to access shall be defined in the Operating Plan, as such may be approved by the Party Representatives and reasonably necessary to accomplish the purposes of this Agreement, or as may otherwise be ordered by a court of law, or required by a settlement agreement to which the Host City is a party.

Except as required to comply with applicable law or court order, the Navigation Center shall not

10 be “no-barrier” facilities, and shall have, at a minimum, access or entry conditions for Guests that are substantially similar to those utilized by other navigation centers in Orange County, and screening for felony warrants or registration as a sex offender may be included in the Operating Plan.

6.10. Community Coordination and Communication. The Parties are committed to communication with neighbors on an ongoing basis. During the Term, the Parties and the Center Operator will work together cooperatively and in good faith to facilitate community forums, generate educational or outreach materials, and engage in similar activities to promote or further the purposes of the Program. The goal of such efforts will be to provide members of the community with opportunities to ask questions and receive information about the Navigation Center and the Program. Any printed or published materials relating to the Program shall be subject to approval by the Party Representatives.
a) Complaints / Inquiries. Any community complaints and/or inquiries about the Program should be recorded and forwarded to the appropriate Party, or its designated point of contact, for prompt investigation. The Party Representatives and Center Operator shall work together to facilitate appropriate responses to customer service requests and prompt resolution of community complaints.
b) Visitors / Tours. Visits by members of the community and tours of the Navigation Center should be made available by the Host City, and will be coordinated by and through the Host City and the Center Operator.
c) Retention of Professional Service Providers. The Parties may retain or appoint professional service providers as necessary to provide public relations, legal, accounting, or other specialized support services for the Program. The Parties will designate the Host City to serve as the contracting agency for any such purposes, and the need for and selection of any such professional service providers will be subject to approval by the Party Representatives. Costs and expenses incurred in the retention of professional services providers shall be a Program Cost. d) Coordination of Government Agencies. The Program will be operated for the public good, and successful implementation will require the partnership of various stakeholders including the Parties, the Center Operator, local school districts, and other local political subdivisions and community organizations. The Parties are, and the Center Operator shall be, committed to working cooperatively with numerous stakeholders to serve Guests in the Program Area. The Parties and the Center Operator will communicate and work collaboratively with local police, fire, and public safety departments through all stages of Program implementation, including but not limited to the design of Navigation Center, and the development and implementation of the Operating Plan and Operating Agreement.

6.11. Annual Report. At least once per year, to be completed contemporaneously with the Annual Audit, the Parties shall cause a third-party to review and audit the day-to-day operational affairs of the Navigation Center, and prepare an Annual Report to be presented to the Party Representatives. The Annual Report shall include such information as may be directed by the Party Representatives, but should at a minimum address such issues as: the sufficiency of the

11 Guest Capacity for the Program Area; each Party’s usage of Guest Capacity over the past year; each Party’s anticipated Guest Capacity needs for the ensuing year; funding needs and opportunities; anticipated capital improvement or operational expenses for the Program; the extent to which the Program is achieving the purposes of this Agreement; and a performance review of the Navigation Center, Center Operators, and Operating Plans. The Parties shall designate the Program Treasurer to serve as the contracting agent for such purposes, and the selection of a thirdparty to prepare the Annual Report shall be subject to approval of the Party Representatives. Costs and expenses incurred in the retention of professional services providers shall be a Program Cost.

7. FINANCIAL PROVISIONS

7.1. Program Treasurer. The Parties shall select a Party to serve as the Program Treasurer.
a) Designation. The identity of the Program Treasurer shall be memorialized in writing, and the Party Representatives may alter the identity of the Program Treasurer at any time, and the Program Treasurer may resign at any time, both without penalty, cause, or justification; provided that as much advance notice as possible shall be afforded in the case of Program Treasurer resignation. Subject to the foregoing and following completion of construction of the New Navigation Center by the Host City, the Parties’s designation of a the Program Treasurer shall serve an initial two (2) years for program operation, or such term that mutually agreed by the Party Representatives. Thereafter, a rotation of the next Participating City to serve as Program Treasurer shall be selected at a scheduled meeting of Annual Review of Party Usage described in Section

6.4. b) Costs. The Program Treasurer shall be entitled to be recover the costs associated with serving in such capacity under this Agreement. In 2022, this amount is estimated to be $20,000 per Annual Term or up to 250 hours per Annual Term.

7.2. Program Accounts. The Program Treasurer shall establish and maintain the Program Accounts set forth in Exhibit “G”, or such other or different accounts as may be directed by the Party Representatives from time to time, with a banking institution approved by the Party Representatives, into which the Program Treasurer shall deposit all Program Funds. The Program Funds deposited into each Program Account will be used for the specific purposes of such account. a) The Parties Representatives have collectively pre-approved US Bank as the banking institution for the Program Treasurer to establish initial Program Accounts. b) Upon execution of this Agreement but no later than October 31, 2022, the Parties Representatives shall deposit the initial Program Funds with to complete scope of work associated with Due Diligence, Administration and Acquisition and further described in Exhibit “C”.

7.3. No Comingling of Funds. Program Funds provided by the Parties for specific purposes under this Agreement shall be deposited into the designated Program Account, and shall not be comingled with funds provided for any other purpose, nor used for any purpose other than the specific purpose so designated, absent the approval of Party Representatives.

12 7.4. Permissible Use of Funds. Each Party represents and warrants to the other Parties that the funding source for the Party Shares paid under this Agreement may be used for the purposes described herein, and their expenditure was duly authorized by the governing board of the Party. Any restriction or limitation on the use of funds contributed by a Party under this Agreement shall be so designated and disclosed by the Party making the payment and, should such restrictions or limitations frustrate or hinder the purpose or administration of this Agreement, the Parties may require the Party Share be paid from an alternative funding source; provided that the Parties shall work together cooperatively and in good faith to attribute restricted funds provided by the Parties towards authorized purposes that further the Program before requesting an alternative funding source.

7.5. Description of Party Shares; Financial Contributions by the Parties. a) Anticipated Program Costs. As of the Effective Date, the Parties agree that Exhibit “C” represents a reasonable estimate of Program Costs anticipated to be incurred by the Parties in the acquisition of the Navigation Center site and the completion of modifications or capital improvements thereto (Exhibit C(1)), and annually to operate the Navigation Center during the Term (Exhibit C(2)). The Parties hereby approve of such Program Costs as the Program Budget, which will govern the Program Treasurer’s allocation of Program Funds to the Parties. At each Annual Meeting, a new Program Budget will be approved by the Party Representatives for the immediately ensuing Annual Term, and any such Program Budget may thereafter be modified, amended, or superseded by the Party Representatives.
b) Funding Sources and Parties’ Share of Program Costs

1. Funding Sources and Party Shares. As set forth in Exhibit D(1) and (D)(2), the Program Costs are anticipated to be paid for from a combination of funding sources:
(1) Party Shares; (2) Permanent Local Housing Allocation (PLHA) funds; (3) funds contributed by the County; (4) Housing Successor and/or Housing Authority; and (5) future Homeless Emergency Aid Program (HEAP) funds; and, other qualified grant sources. The portion of Program Costs to be paid from Party Shares are the City Program Costs, and each Party Share of such City Program Costs is detailed in Exhibit D(1) and D(2). Should any of the alternative funding sources fail, in whole or in part, then the unfunded portion of Program Costs shall be deemed City Program Costs, to be paid by the City Parties in accordance with the Cost Allocation Plan.

2. Basis for Allocation; Cost Allocation Plan. The Parties agree that each Party Share is intended to, and does, fairly represent the privileges, benefits, and burdens flowing to and imposed upon each such Party, and its respective community, in that each Party Share represents a portion of the City Program Costs that is substantially equal to each City Party’s anticipated use of the aggregate Guest Capacity of the Navigation Center, and associated burdens of the Program carried by Host Cities. The Parties agree that each Party Share is consistent with the Cost Allocation Plan under Option 3 set forth in Exhibit “E” and that the Cost Allocation Plan accurately reflects the burdens and benefits of the Parties under this Agreement.

3. Annual Meeting. No later than ninety (90) days before the commencement of each

13 Annual Term, the Parties shall review the results of the previous year’s Annual Audit, together with the Annual Report, existing Cost Allocation Plan, and Program Costs anticipated to be incurred in the current and future Annual Terms, and shall, cooperatively and in good faith:
negotiate and reach a mutual agreement as to any adjustments or revisions to the Cost Allocation Plan necessary to finance and operate the Program and the Navigation Center, and to improve, develop or repair the Navigation Center; ensure that each Party Share fairly reflects the benefits and obligations to such Party under this Agreement, consistent with the considerations included in the Cost Allocation Plan; and to adopt and approve a new Program Budget for the immediately ensuing Annual Term.

4. Notice of Party Shares. Not later than sixty (60) days prior to the commencement of each Annual Term, the Parties shall finalize the Party Shares for the ensuing Annual Term based on the Cost Allocation Plan, and notice of each Party’s Share shall be provided by the Program Treasurer not later than thirty (30) days immediately preceding commencement of the applicable Annual Term.

5. Timely Payment. Each Party shall pay the Party Share in consideration for its continuing right to use and access the Navigation Center. Each Party’s annual obligation to remit payment of the Party Share is contingent on the Parties making the Navigation Center available to such Party for the applicable Annual Term. Each Party shall remit payment of its Party Share on or before the beginning of each Annual Term, and set forth in the notice by the Program Treasurer.

Late payments shall accrue interest at the maximum interest rate permitted by law applicable to municipal corporations.

6. Funding Shortages. Should the Program experience a shortfall in funding during any Annual Term, the Program Treasurer, with the approval of Party Representatives, shall provide written notice to the Parties of the shortage, and the City Parties shall remit payment of required amounts within thirty (30) days’ receipt of the same, with the amount of each City Party’s payment to be based on the Cost Allocation Plan.

7. Reconciliation. If, during any Annual Meeting, the Party Representatives determine that past payments made by any Party were either in excess or less than the amount fairly attributable to that Party, that Party’s Share shall be adjusted in future Annual Terms.

8. Public Benefit and Purpose.Each Party acknowledges that establishment and operation of the Program, including but not limited to development and operation of the Navigation Center, is a substantial benefit to each such Party, and the residents, business, and communities residing within their respective jurisdictional boundaries. All Parties expressly declare that this Agreement, and all expenditures of public funds hereunder for the purposes described herein, furthers legitimate public purposes of combating and remediating incidents of homelessness in their communities.

9. No Repudiation of Party Share. In the event any Party refuses to receive or take advantage of the Program benefits, or access or utilize the Navigation Center, despite the opportunity to do so as a Party to this Agreement, or in the case of a default or failure to pay its Party Share in accordance with this Agreement, each Party remains obligated to pay to the other

14 Parties, by and through the Program Treasurer, its outstanding payments hereunder as they become due and payable, and any other Party may take any legal action as appropriate to obtain such payment.

10. Results of Nonpayment by Party. All Parties acknowledge that the failure of any Party to pay any amount hereunder will result in an increase in the operational costs of the Program to be divided among all other Parties. To that end, in the event any Party fails to pay, for any reason, any amount required to be paid by that Party under this Agreement within fifteen (15) days of when such payment is due, the amount of such nonpayment will be apportioned among the remaining Parties such that the remaining Parties will be responsible to pay such unpaid amount.

Should the non-paying Party subsequently pay any portion of the amount owing, the increased cost paid pursuant to this Section by the remaining Parties will be reimbursed from such payment in a percentage equal to each Party’s Share. Each Party’s incremental increase in a contribution resulting from a Party’s nonpayment will be due within thirty (30) days of notification by the Program Treasurer. The obligation of Parties to pay increased amounts under this paragraph is not intended to be an exclusive remedy. The Parties reserve the right to take any action as is appropriate to obtain payment from any non-paying Party. Additionally, each Party paying increased costs pursuant to this paragraph, shall have and retain the right to take any action at law or equity as is appropriate to obtain reimbursement of such increased payment amounts from the non-paying Party.

11. No Reimbursement. Except as otherwise expressly provided herein, it is the intention of all Parties that no funds provided by any Party under this Agreement shall be reimbursed. The Parties acknowledge that the payments made or required under this Agreement represents a fair return and consideration in exchange for access and use of the Program and Navigation Center during the Annual Term to which the payment or payment(s) relate(s). If, pursuant to judicial action or threat thereof, or for any other reason, any funds are reimbursed under this Agreement to any Party, other than as expressly provided herein, the remaining Parties will be responsible for paying the reimbursed amount, with each Party’s repayment obligation equaling that used to establish the Party’s Share.

12. Budgeting Party Contributions. For each Annual Term, each Party shall make every effort to adopt all necessary budgets and make all necessary appropriations for all payments due hereunder. The covenant contained in this Section shall be deemed to be, and shall be construed to be, contingent upon the continuing offer by other Parties to participate in the Program and be a party to this Agreement. To the extent the Parties offer access and use of the Program and Navigation Center to any Party, the continued responsibility of such Party to make all payments required hereunder shall be a duty imposed by law and it shall be the duty of each and every public official of each Party to take such actions and do such things as are required by law in performance of the official duty of such officials to enable the Party to carry out and perform the covenants contained in this Section.

13. Mutual Covenant. All Parties acknowledge that the construction, maintenance and availability of Navigation Center for the provision of Services to Guests, and the division of the costs of constructing and maintaining such Navigation Center among the Parties allows for costs efficiencies and significant savings to each Party and that each Party has entered into this

15 Agreement in reliance on such shared costs and resulting savings. Each Party, to provide assurance of such cost efficiencies to each remaining Party, hereby expresses its commitment to fulfill its stated obligations regardless of the term of the Agreement overlapping more than one fiscal year, and acknowledges the financial burden that any breach of the terms of this Agreement will have on all other Parties.

14. Grant Funding. The Parties are encouraged to pursue local, state, federal, and other grant opportunities and funding sources in furtherance of the Program, the Navigation Shelters, or towards a Party’s financial contributions under this Agreement. To the extent possible, the Parties agree to work together cooperatively and in good faith in pursuit of funding opportunities.

7.6. Program Property. The Program Treasurer shall track and keep an accurate list of all Program Property valued at more than Five Thousand Dollars ($5,000) that is acquired with funds contributed by the Parties, including a record of which Party is in custody of such Program Property. Regardless of whether a Party holds legal title to any such Program Property, it shall be managed and utilized by the Party in custody and control of the same exclusively for purposes consistent with this Agreement.

7.7. Disposition of Program Property. In the event any Party is in possession of any item of Program Property that is not needed or currently being utilized for purposes consistent with this Agreement, the Party in possession shall, within a reasonable time of discovering the same:
(1) provide written notice to the Parties; and (2) direct the transfer the Program Property to another Party for use in the Program, as approved by Party Representatives. In the event the transfer of Program Property is unnecessary or infeasible, the Program Property shall be sold at fair-market value within a reasonable period of time, and the proceeds immediately transferred to the Program Treasurer for deposit into Program Accounts, or for reimbursement or reduction of Party Shares, as may be directed by Party Representatives. To the extent state, federal, or grant restrictions direct the disposition or sale of Program Property acquired with any such funding source, the same shall govern and prevail over the terms of this Section.
a) For Program Property specific to real property located at13871 West Street in the City of Garden Grove has been identified as the future location of the New Navigation Center. b) For purposes of real property disposition under Program Property, if the Parties deem the real property is unnecessary or infeasible for use in the Program, the Parties agree that the real property shall be sold at fair-market value within a reasonable period of time determined by the Parties, and the proceeds immediately transferred to the Program Treasurer for deposit into Program Accounts to closeout any and all final Program costs, then remaining net sale proceeds shall be disbursed to Parties based on pro-rata share detailed in the 2022 Cost Allocation Plan Option 3 (Exhibit “D”) and further described as follows: (i) Garden Grove (0.5882%); (ii) Fountain Valley (0.1529%); and (iii) Westminster (0.2588%).

7.8. Annual Audit. The Program Treasurer shall cause an independent financial audit of the Program Accounts to be completed for each Annual Term (June – July) during the Term, and the report shall be presented to the Parties at the Annual Meeting (“Financial Audit”). The

16 Financial Audit shall comply with Generally Accepted Government Audit Standards, and shall be distributed to all Parties upon completion. The Program Treasurer shall be the “contracting party” for purposes of any third-party contract with an independent auditor.

8. DISPUTES, DEFAULTS, AND REMEDIES

8.1. General Disputes. Should the Parties be unable to reach a mutual agreement as to any matter necessary to effectively administer and operate the Program, such as the amount of any Party Share, as an alternative to terminating this Agreement or pursuing an alternative remedy, the Parties may mutually agree to refer the dispute to a neutral arbitrator for resolution, in which case the arbitrator’s determination shall be binding unless and until this Agreement is otherwise amended by the Parties.

8.2. Defaults.
a) Notice and Time to Cure. The failure by any Party to perform any of its obligations set forth in this Agreement shall constitute a default. Except as required to protect against further damages, the non-defaulting Parties may not institute legal proceedings against the Party in default until the non-defaulting Parties have provided the defaulting Party notice of the default and the cure period has expired: The cure period for any default shall be thirty (30) days after the defaulting Party’s receipt of written notice from the non-defaulting Parties that such obligation was not performed. In the case of a default which cannot be cured within the cure periods set forth in this section, the defaulting Party shall commence efforts to cure within such time periods, and shall diligently thereafter pursue to cure the default to completion within a reasonable period of time.
b) Cooperative Resolution. During the cure period set forth in paragraph (a), and prior to pursing any remedies described in this Section, the Parties will attempt, in good faith, to find a mutually agreeable resolution through communicating with each other and attempting to resolve any substantive problems arising under this Agreement, including challenges arising from funding difficulties, and/or any difficulty with effectively implementing the responsibilities detailed in this Agreement. Communication and attempts to resolve such problems and difficulties prior to pursing remedies under this Agreement include, but are not limited to, meeting together, amending this Agreement, and/or seeking the assistance of a jointly agreed upon mediator. c) Remedies. Upon the occurrence of any default, and following written notice and expiration of the time to cure, the non-defaulting Parties may, at their option: declare this Agreement null and void with respect to the defaulting Party, in which case the defaulting party shall not be entitled to the benefits and privileges of this Agreement or the Program; or pursue damages or specific performance or other legal and equitable remedies the injured Parties may have against the non-defaulting Party in accordance with applicable law. Nothing herein shall be construed as the non-defaulting Parties’ exclusive remedy for the remediation of default by a Party, and the non-defaulting Parties reserve the right to pursue any and all available rights and remedies at law or in equity.
d) Non-refund of Contributions. The payments made by all Parties pursuant to this

17 Agreement shall be used for the Program in the manner described herein, and all Parties acknowledge and agree that the development, administration, and operation of the Program, including development of the Navigation Center, provides an immediate benefit to each Party and that no payments made pursuant to this Agreement shall be refunded for any reason other than as specifically authorized herein.

9. INDEMNITY AND INSURANCE

9.1. Indemnity / Hold Harmless. Each Party shall hold harmless, indemnify, and defend the other Parties, and each of them individually and jointly, and their respective officers, employees, and agents, from and against any and all claims, suits, or actions of every kind brought for or on account of injuries to or death of any person or damage to any property of any kind whatsoever and to whomsoever belonging which arise out of a Party’s failure to fulfill any payment obligations of such Party arising pursuant to the performance or nonperformance of the Party’s covenants and obligations under this Agreement, and which result from the actively negligent or wrongful acts of the Party, or its officers, employees, or agents. This provision requiring a Party to hold harmless, indemnify, and defend the other Parties shall expressly not apply to claims, losses, liabilities, or damages arising from actions or omissions, negligent or otherwise, of any independent contractor providing services pursuant to a contract with any other Party. In the event of concurrent negligence of the Parties or any other Party, its respective officers, or employees, and a Party, its officers and employees, then the liability for any and all claims for injuries or damages to persons and/or property or any other loss or cost which arises out of the terms, conditions, covenants or responsibilities of this Agreement shall be apportioned in any dispute or litigation according to the California theory of comparative negligence.

9.2. Insurance. Each Host City, and all Center Operators, shall obtain and maintain in full force and effect throughout the term of this Agreement, or the term of the Center Operator’s contract, as applicable, insurance of the types and in the amounts directed by the Party Representatives. Costs incurred by Host Cities in procuring or maintaining such insurance shall be a Program Cost.

10. MISCELLANEOUS

10.1. Approval by Party Representatives; Host City Authority. Any term or provision of this Agreement that calls for the direction, approval, or consent of the Party Representatives, shall mean and refer to the direction, approval, or consent of at least two-thirds (2/3) of the Party Representatives; provided that, notwithstanding anything contrary in this Agreement, the Host City shall have discretion to approve or disprove any such action that: directly relates to the operation, management, capacity, construction, location, design, or scale of a Navigation Center located in the Host City’s jurisdiction; results in the addition of a Navigation Party to this Agreement; or any other action that, in Host City’s reasonable discretion, will have a reasonably foreseeable negative material impact on residents, business, or public facilities in the area surrounding the Navigation Center, materially increase the intensity of Navigation Center use or capacity, or materially increase burdens on public services provided to said area.. Except as specifically provided herein, all actions reasonably necessary to effectuate the purpose of this Agreement and the Program may be performed by the Party Representatives except as may otherwise be prohibited by state or

18 federal law.

10.2. Notice.Any notices provided to any Party in connection with this Agreement shall directed to the Party Representative of each of the Parties set forth in Exhibit “H”.

10.3. Parties as Independent Contractors. Each Party is, and at all times shall be deemed to be, an independent contractor of the other Parties. Nothing herein is intended or shall be construed as creating the relationship of employer and employee, or principal and agent, between any Party, or any Party's agents or employees. Each Party shall retain all authority for rendition of services, standards of performance, control of personnel, and other matters incident to the performance of the Program pursuant to this Agreement. Each Party, and its agents and employees, shall not be considered to be employees of any other Party.

10.4. Governing Law and Venue. This Agreement has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction, located in Orange County, California, and the Parties agree to and hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, the Parties specifically agree to waive any and all rights to request that an action be transferred for trial to another county.

10.5. Amendments / Entire Agreement. Amendments to this Agreement must be in writing and approved by the governing body of each Party. This Agreement, and the various Exhibits referenced herein which are incorporated fully by this reference, is the entire agreement among the Parties with respect to the subject matter hereof, and it supersedes any prior written or oral agreements with respect to the subject matter.

10.6. Severability. If any section, subsection, paragraph, term, or provision of this Agreement, or the application thereof, is held by a court of competent jurisdiction to be invalid, void or unenforceable, such section, subsection, paragraph, term, or provision, to the extent the same is valid and enforceable, and all other remaining provisions hereof, shall remain in full force and effect, to the fullest extent possible, and shall in no way be affected, impaired or invalidated thereby to the extent such are not rendered impractical to perform taking into consideration the purposes of this Agreement.

10.7. Attorneys’ Fees. In any action or proceeding to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover its reasonable costs, expenses, and attorneys’ fees incurred in such action or proceeding.

10.8. Interpretation. This Agreement has been negotiated at arm's length and between persons sophisticated and knowledgeable in the matters dealt with in this Agreement. In addition, each Party has been represented by experienced and knowledgeable independent legal counsel of its own choosing or has knowingly declined to seek such counsel despite being encouraged and given the opportunity to do so. Each Party further acknowledges that is has not been influenced to any extent whatsoever in executing this Agreement by the other Parties, or by any person representing the other Parties, or both. Accordingly, any rule or law (including Civil

19 Code Section 1654) or legal decision that would require interpretation of any ambiguities in this Agreement against the Party that has drafted it is not applicable and is waived. The provisions of this Agreement shall be interpreted in a reasonable manner to affect the purpose of the Parties and this Agreement.

10.9. Non-Waiver of Rights and Remedies. No term or provision of this Agreement shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the Party claimed to have waived or consented. Any consent by any Party to, or waiver of, a breach by the other, whether express or implied, shall not constitute consent to, waiver of, or excuse for any other different or subsequent breach.

10.10. Authority. The Parties represent and warrant that this Agreement has been duly authorized by their respective governing boards, and executed by a duly authorized representative thereof, and constitutes the legally binding obligation of their respective Party, enforceable in accordance with its terms.

10.11. Assignment. Except as otherwise expressly provided for herein, no Party shall assign any of its obligations or rights hereunder without the consent of all other Parties, and any such assignment without consent shall be null and void.

10.12. Execution in Counterparts. This Agreement may be executed in counterparts, each of which, when the Parties have signed this Agreement, shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties to this Agreement have caused the same to be executed by each of their duly authorized officers as follows:
[SIGNATURES]

20 CITY OF GARDEN GROVE
By:

City Manager
Attest:

City Clerk
Approved as to form:

City Attorney

CITY OF FOUNTAIN VALLEY
By:

City Manager
Attest:

City Clerk
Approved as to form:

City Attorney

CITY OF WESTMINSTER
By:

City Manager
Attest:

City Clerk
Approved as to form:

City Attorney

21 Exhibit “A”
Central Service Planning Area

22 Exhibit “B”
Navigation Centers and Guest Capacity
*Designated Host City for Future Central Cities Navigation Center City Facility Name Service
Provider
Current
Temporary
Shelter
Beds
Current
Permanent
Shelter
Beds
Future
Permanent
Shelter
Beds
Population
Served
Costa Mesa
Costa Mesa Bridge Shelter
https://www.costamesaca.gov/hot
-topics/costa-mesa-bridge-shelter
Mercy House 72 Single Adults
Garden Grove* Future Central Cities Navigation
Center TBD 50 Single Adults and Couples
Fountain Valley Future Central Cities Navigation
Center TBD 13 Single Adults and Couples
Huntington Beach
Huntington Beach
Navigation Center
https://www.hbhomelesssolutions
.com
Mercy House 174 Single Adults
Newport Beach Collaboration with Costa Mesa Mercy House Santa Ana Carnegie Site Homeless Shelter Illumination
Foundation 200 Single Adults and Families
Seal Beach N/A
Tustin
Tustin Temporary Emergency
Shelter
https://tustintemporaryshelter.squ
arespace.com/
Orange
County
Rescue
Mission
57 Single Adults
and Families
Westminster Future Central Cities Navigation
Center TBD 22 Single Adults and Couples
Total Central SPA Emergency Shelter Beds 57 446 85
Armory Emergency Shelter
https://ceo.ocgov.com/carecoordination/homelessservices County of
Orange/Mercy
House
100 Single Adults
County of Orange Yale Navigation Center (Santa
Ana)
https://epath.org/regions/orang
e-county/
County of
Orange
(PATH)
425 Single Adults
County of Orange Shelter Beds
located within Central SPA 525

23 Exhibit “C”
Estimated Program Costs and Budget
(1) Future Central Cities Navigation Center
2022 Construction and Acquisition Program Costs (Estimated) Due
Diligence
C-SPA
Administration
Property
Acquisition
Tenant
Improvements FF&E Estimated Budget
Garden
Grove 231,618 44,118 3,323,529 411,765 882,353 4,893,382 Fountain
Valley 60,221 11,471 864,118 107,059 229,412 1,272,279
Westminster 101,912 19,412 1,462,353 181,176 388,235 2,153,088 Total 393,750 75,000 5,650,000 700,000 1,500,000 8,318,749 Average Cost Per Bed 97,868
(2) Future Central Cities Navigation Center
Ongoing Operation and C-SPA Administration Costs (Estimated) Navigation Center Total Cost Bed Average Cost Per Bed
Garden Grove 1,001,103 50 20,022
Fountain Valley 260,287 13 20,022
Westminster 440,485 22 20,022
Total Cost 1,701,875 85*
Average Cost Per Bed 20,022
*Cost estimated assume a capacity of 85 beds at the Future Central Cities Navigation Center.

Ongoing operations and program design will explore opportunity to achieve capacity of up to 100 beds.

24 Exhibit “D”
Estimated Funding Source(s) and Party Shares
(1) Estimated Funding Source(s) for Construction and Acquisition (Estimated) Property
Acquisition
Construction
(Due Diligence/
Tenant
Improvement/
FF&E/Admin)
Party Shares Funding
Source(s)
Percent of
Total
County of Orange 5,300,000 5,300,000 General Fund,
ARPA 0.3892
Garden Grove 3,323,529 1,569,853 4,893,382
PLHA funds,
Housing
Authority,
General Fund

0.3593
Fountain Valley 864,118 408,162 1,272,279
Housing
Authority,
General Fund

0.0934
Westminster 1,462,353 690,735 2,153,088 General Fund 0.1581 Total 5,650,000 7,968,750 13,618,750 1.0000
(2) Party Shares of Ongoing Operation Program Costs (Estimated at Year 1) C-SPA Cities
Cost Allocation
Plan *
Party Shares Funding
Source(s) Percent of Total
County of Orange 625,000 General Fund,
ARPA 0.2686
Garden Grove 0.5882 1,001,103
PLHA funds,
Housing Authority,
General Fund

0.4302
Fountain Valley 0.1529 260,287 Housing Authority,
General Fund 0.1119
Westminster 0.2588 440,485 General Fund 0.1893
Total 1.0000 2,326,875 1.0000
* Reference Exhibit ‘E” for Cost Allocation Plan

25 Exhibit “E”
2022 Cost Allocation Plan
Source
* Point In Time Count Results for the County of Orange released on May 11, 2022 ** 2020 Census Results and Data Profiles (https://www.census.gov/en.html) 2022 Cost Allocation Plan
Option 1 Option 2 Option 3
2022 Point In Time Count*
Unsheltered % of
Unsheltered Sheltered
2020
Population**
% of 2020
Population Beds 2022 Cost Allocation by Beds
Garden
Grove 278 0.5853 113 171,949 0.5375 50 0.5882
Fountain
Valley 38 0.0800 0 57,047 0.1783 13 0.1529
Westminster 159 0.3347 0 90,911 0.2842 22 0.2588
475 1.0000 113 319,907 1.0000 85 1.0000

26 Exhibit “F”
Operating Plan Considerations
In addition to other matters directed by Party Representatives, Operation Plan should address or include the following:

A. General policies and procedures that promote utmost safety for Guest, staff, volunteers, and the community, and New Navigation Center should strive to provide an atmosphere that promotes community, stays alert for signs of conflict, and confronts behaviors before they escalate.

B. Security measures including but not limited to security plans, secured entrances, on-site security personnel, video recording equipment, lighting, law enforcement patrols, and neighborhood safety and patrols.

C. Fire, earthquake, and disaster safety, including but not limited to evacuation plans, fire prevention procedures, fire drills and documentation, fire inspections and extinguishers.

D. Guest access, including but not limited to hours of operation, controlled access, transportation of Guests to and from the Navigation Center from jurisdiction of resident, overflow management, screenings procedures and criteria, identification requirements and procedures, storage of Guest property, and animal policies.

E. Guest rules of conduct and guidelines, including anti-loitering policies, the use of controlled and over the counter substances, possession of weapons or drug paraphernalia, and dispute resolution procedures.

F. Access and referral of Guest to emergency and medical care, including both on-site of New Navigation Center and coordination with local EMT providers and medical facilities.

G. Coordination with transitional housing providers to locate transition housing vacancies for Guests, and connect Guests to local service providers, with a goal of increasing the Navigation Center turnover rate as Guests are successfully matched to alternate housing opportunities.

H. Health policies designed for safety of staff and Guests, including procedures for the handling and disposal of hazardous materials, precautions in handling of laundry and cleaning, and general self-health care, wearing appropriate protective garments (i.e. gloves), use of disinfecting cleaning products, and hand-washing procedures.

I. Disease prevention protocols for prevention and treatment of diseases and conditions such as seizures, diabetic episodes, mental health episodes, lice, bed bugs, influenza, and other communicable and contagious diseases.

J. Compliance with all local, state, and federal laws, regulations, and policies, including but not limited to labor laws, non-discrimination laws and policies, the American with Disabilities Act, gender-specific programming policies, religious freedom, and sexual harassment.

27 Exhibit “G”
Program Accounts
A. Capital Improvement Fund. Monies in the CPI Fund shall be used solely and exclusively for purpose of financing costs associated with the expansion, modification, improvement, retrofitting, construction, and/or development of the New Navigation Center, including any pre or post-construction work associated with the foregoing.

B. Operating Fund. Monies in the Operating Fund shall be used solely and exclusively for purposes of financing costs associated with the day-to-day, on-site management and operation of New Navigation Center, including such expenses as insurance, personnel, consumables, disposables, refuse disposal, utility costs, professional services providers, and exclusively for purposes of financing costs associated with the regular and routine maintenance, repair, or replacement of capital improvement associated with the New Navigation Center.

28 Exhibit “H”
Notices and Designation of Party Representative(s)
Party Representative(s) Party Representative(s)
Garden Grove
Scott C. Stiles, City Manager
City of Garden Grove
11222 Acacia Parkway
Garden Grove, CA 92840
EMAIL: [email protected]
With Copy to:

Omar Sandoval, City Attorney
Woodruff, Spradlin & Smart
555 Anton Boulevard, Suite 1200
Costa Mesa, CA 92626
EMAIL: [email protected]
Fountain Valley
Christine Cordon, City Manager
City of Westminster
8200 Westminster Blvd
Westminster, CA 92683
EMAIL: [email protected]
With Copy to:

Colin Burns, City Attorney
Harper & Burns LLC
453 S. Glassell Street
Orange, CA 92866
EMAIL: [email protected]
Westminster
Maggie Le, City Manager
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
EMAIL: [email protected]
With Copy to:

Christian L. Bettenhausen, City Attorney
Jones & Mayer
3777 North Harbor Boulevard
Fullerton, CA 92835
EMAIL: [email protected]

400 West Civic Center Drive, 5th Floor, Santa Ana, CA 92701 • County Administration North • Phone (714) 834-2345 • www.ocgov.com County of Orange
County Executive Office
September 6, 2022
Scott Stiles
City Manager, City of Garden Grove
11222 Acacia Parkway
Garden Grove, CA 92840
RE: Homeless Navigation Center
Dear Mr. Stiles:

This letter is to affirm my commitment to bring before my Board of Supervisors (Board), a recommendation to contribute a one-time allocation of $5.3 million with an annual contribution of $625,000, for ten years, to support a regional navigation center located in the City of Garden Grove.

Per our discussion, the navigation center, with capacity to serve up to 100 individuals, will be used to support the needs of Garden Grove, Fountain Valley and Westminster, with an agreement in place for the cities to jointly fund the remaining acquisition, tenant improvements and the operating costs. We have also discussed the requirement for the navigation center to operate in compliance with the County’s Standards of Care.

Once the City has a plan for site control, please contact me to discuss next steps, which will involve the negotiation of a Memorandum of Understanding (MOU) with the County. I want to ensure that I don’t get ahead of you or the other cities as you discuss the matter with your councils. The MOU will require approval by each city then the Board of Supervisors.

Throughout this process, Doug Becht, Director of Care Coordination, and I are available to support you.

We look forward to this collaboration. Please do not hesitate to contact me or Doug with any questions or concerns.

Sincerely,
Frank Kim
County Executive Officer
cc: Doug Becht, Director of Care Coordination
Lilly Simmering, Deputy County Executive Officer

4865-2379-6536v3/200348-0008

COOPERATION AGREEMENT
(Central Cities Navigation Center)
This COOPERATION AGREEMENT (Central Cities Navigation Center) (“Cooperation Agreement”) is hereby entered into as of November 1, 2022 by and between the CITY OF FOUNTAIN VALLEY, a California municipal corporation (“City”), and the FOUNTAIN VALLEY HOUSING AUTHORITY, a public body, corporate and politic (“Authority”).

RECITALS
A. The City is a California municipal corporation. The City is authorized by the Government Code, has committed in its Housing Element, and under other laws to continue implement regional efforts to address homelessness in the community and throughout Orange County.

B. The City is authorized to assist the provision of housing opportunities and address homelessness and State law mandates that cities create opportunities to provide for affordable housing to all economic segments of the community. The City’s Housing Element describes how the City has determined to fulfill its legal obligations.

C. The Authority is a California housing authority formed by the City Council acting under the California Housing Authorities Law (“HAL”) set forth in Part 2 of Division 24, Section 34200, et seq., of the Health and Safety Code (“HSC”); further, Authority serves as the “housing successor” to the former Fountain Valley Agency for Community Development, a dissolved redevelopment agency (“Former Agency”) pursuant to Part 1.85 of Division 24 of the HSC, in particular Sections 34176 and 34176.1 thereof (“Housing Successor Law”) and the statutes therein that reference and incorporate certain affordable housing laws set forth in HSC Section 33000, et seq. that survived the dissolution of all California redevelopment agencies and remain effective as to housing successors, including the Housing Authority (“CRL”).

D. The Housing Authority serving as housing successor maintains, among its accounts, a low to moderate income housing asset fund (“LMIHAF”), expenditures from which are subject to the Housing Successor Law.

E. The City and Housing Authority may be referred to together as “Fountain Valley” and the local community and its residents and businesses as Fountain Valley.

F. Over the past years, like many other regions in the United States, in California, including in Orange County, there exists a rapid and troubling growth in the homeless population and the needs of homeless persons, families and those at risk of becoming homeless, along with the associated social, physical and economic conditions to address and end homelessness, which have been difficult to address given the high costs in Orange County of housing and property, the shortage of emergency, transitional, and permanent affordable housing, and availability and access to supportive services, including to provide medical, mental health care, and substance abuse services, to help and serve the homeless population.

G. In efforts to assist and resolve the homeless crisis, the County of Orange (“County”) established an integrated care system, called the Continuum of Care (“CoC”), to guide homeless individuals and families through a comprehensive array of services and housing designed to prevent and end homelessness. Further, the CoC sets forth a community plan to organize and deliver housing and services to meet the specific needs of people who are homeless as they move to stable housing and maximize self-sufficiency.

2 4865-2379-6536v3/200348-0008
H. To better coordinate access points, assessments, resources, and programs serving persons experiencing homelessness, the CoC divided the Orange County into three (3) geographic “Service Planning Areas” (“SPAs”).

I. The County of Orange “Central Service Planning Area” (“Central SPA” or “C-SPA”) includes the cities in alphabetical order of: Costa Mesa, Garden Grove, Fountain Valley, Huntington Beach, Newport Beach, Santa Ana, Seal Beach, Tustin, and Westminster.

J. Further, in efforts to alleviate and address homelessness in Fountain Valley and surrounding communities and to implement the CoC, among the nine cities in the C-SPA, the City of Fountain Valley, City of Garden Grove and City of Westminster (together, “Three Cities”), have undertaken and worked collaboratively to negotiate, and all Three Cities’ city councils previously considered, approved, and entered into, that certain Memorandum of Understanding between the Cities of Garden Grove, Fountain Valley, and Westminster to Cooperate on the Development of a Navigation Center for the Central Orange County Service Planning Area (“First MOU”) toward acquisition of property for and development and operation of the “Central Cities Navigation Center” (“CCNC”).

K. Since approval of the First MOU, negotiations continued among representatives and counsels of the Three Cities, who have reached consensus on a more comprehensive Memorandum of Understanding for the Central Orange County Service Planning Area Cities of Garden Grove, Fountain Valley and Westminster (“Second MOU”), and the Second MOU is presented to the City Council for consideration and action concurrent with its review and action on the Cooperation Agreement described in this Resolution; and L. The Garden Grove City Council approved the Second MOU on October 11, 2022, and the Westminster City Council will also consider and take action on the Second MOU; and M. The Second MOU sets forth more details about the CCNC, including (i) the allocation of tasks and performance obligations, (ii) allocation of funding obligations and contributions, (iii) operational guidance, (iv) timeline for and among the Three Cities, as well as (v) additional funds committed separately by the County of Orange to Garden Grove, and (vi) alternative funding sources, all related to funding the acquisition, construction, and operation of the new Central Cities Navigation Center to serve the homeless and chronically homeless adults, children, and, families.

N. Further, the Second MOU describes how the CCNC will be implemented by and among the Three Cities, including (i) how the CCNC will be managed and operated, (ii) how the parties will equitably share access to the capacity of the facility, with due consideration of the capacity provided by existing homeless shelters and navigation facilities, (iii) how the parties will equitably share the costs and responsibilities associated with the acquisition, construction, operation, and maintenance of the facility; and (iv) other related matters in furtherance of the parties’ common purpose.

O. Under the Second MOU, in addition to addressing the needs of homeless persons through the provision of overnight shelter, the Three Cities covenant to continue to work together collaboratively, in furtherance of the CoC, toward developing and increasing the C-SPA’s inventory of long-term affordable and supportive housing units, such that homeless persons receiving services through the CCNC may transition from temporary or emergency shelter facilities, and into long-term and stable housing solutions.

3 4865-2379-6536v3/200348-0008
P. Separate from limited funds authorized for administration of the Housing Authority serving as housing successor and certain other eligible expenditures under HSC Section 34176.1(a)(1), the remaining funds in the LMIHAF are authorized to be expended for: (i) homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless up to $250,000 per fiscal year pursuant to HSC Section 34176.1(a)(2), (ii) the joint funding between or among two of more housing successors for transit priority projects, permanent supportive housing under HSC Section 50675.14(b)(2), special needs housing, regional homeless shelters, as set forth in HSC Section 34176.1(c)(2), and/or (iii) development as the term is defined in HSC Section 34176.1(a)(3)(D) including multi-family housing, acquisition of land for affordable housing, construction, rehabilitation, long-term affordability covenants as further described and pursuant to that subsection.

Q. HSC Section 50675.14(b)(2) referred to in Recital O.(ii) above defines the term “‘Supportive housing’ to include housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving their health status, and maximizing their ability to live and, when possible, work in the community.” And a regional homeless shelter also referred to in Recital O.(ii) above means a homeless service agency that provides temporary residence for homeless individuals and families in order to provide homeless persons and families with safety and protection from exposure to the weather while simultaneously reducing the environmental impact on the community.

R. Presently, the Housing Authority has unencumbered and available monies in the LMIHAF, and may receive additional monies in the future to the LMIHAF and/or from other sources, that are eligible to be and may be expended to assist and facilitate in the City’s performance under the First MOU and Second MOU and related and subsequent implementing documents that relate to the CNNC may be referred to together, as the “CCNC MOU”.

S. In furtherance of the foregoing recitals and by this Cooperation Agreement, the City and Housing Authority desire to cooperate and agree about certain components of and sources of funding necessary to meet the City’s financial obligations under the CCNC MOU, including the next commitment and expenditure of approximately and up to Nine Hundred and Forty Thousand Dollars ($940,000) related to Garden Grove’s acquisition of certain improved real property located in the City of Garden Grove at 13871 West Street upon which the Central Cities Navigation Center will be developed and operated (“CCNC Site”).

T. In order to achieve mutual goals of the City and Housing Authority to address homelessness in the community of Fountain Valley and the surrounding cities of Garden Grove and Westminster, the City desires to loan to the Housing Authority certain funds, and the Housing Authority desires to repay such loan, from monies sourced from its LMIHAF subject to the terms and conditions of this Cooperation Agreement and implementing instruments.

U. Further, by this Cooperation Agreement, the City and Housing Authority desire to state their mutual intention and objective for the Housing Authority to continue to fund all or part of the ongoing payment obligations of the City under the Second MOU, subject to annual consideration and action each fiscal year to provide such funding in compliance with applicable law, in particular HSC Section 34176.1.

V. The City desires to ensure that its duties under City and State law, in the most efficient manner that presents and preserves the greatest quality of life for in the Fountain Valley community.

4 4865-2379-6536v3/200348-0008
The City Council recognizes that the Housing Authority is especially well positioned to focus upon the delivery of beneficial affordable housing and services to the homeless pursuant to City law and policy.

W. Each and all of the foregoing objectives and policies will achieve the City and Housing Authority’s policies and objectives to provide affordable housing and to fund facilities and services to address and resolve homelessness, in cooperation with the other participating City under the CCNC MOU, which will implement the goals of the City in the Housing Element, and the Housing Authority as empowered by the HAL and Housing Successor Law.

X. The Authority and City have noticed a public hearing for consideration and action on Second MOU and this Cooperation Agreement. The purpose of the public hearing is to obtain public comment and testimony concerning such agreements, which, if approved after the public hearing and consideration of all testimony and materials presented in this matter, would commit the City and/or Authority to fund part of the costs for acquisition of land for and development and operation of the Central Cities Navigation Center to be located and operated in Garden Grove and jointly for the benefit of the communities of the three cooperating cities, Fountain Valley, Westminster and Garden Grove.

NOW, THEREFORE, for good and valuable consideration the City and Housing Authority agree as follows:

Section 1. CCNC Initial Loan. City agrees to loan to the Authority, and the Authority agrees to borrow from the City, Nine Hundred Forty Thousand Dollars ($940,000) (“CCNC Initial Loan Amount”), as needed and necessary to fund Garden Grove’s acquisition of the CCNC Site in furtherance of the City’s funding obligation under the Second MOU for the City’s “Construction and Acquisition Program Costs” (herein, “CCNC Initial Loan”).

1.1 Use of Proceeds of CCNC Initial Loan. Authority agrees to expend and transfer to Garden Grove the proceeds of the CCNC Initial Loan as and when necessary to pay for the City’s Construction and Acquisition Program Costs under the Second MOU, so long as such expenditure and transfer does not exceed the CCNC Initial Loan Amount. In the event such the CCNC Initial Loan Amount is not adequate to fund in full the City’s Construction and Acquisition Program Costs, then the City agrees to fund and pay for any and all overages for such costs, subject to the rights and authority of the Housing Authority to provide additional funding pursuant to Section 4 herein and subject to the requirements therein and in the Housing Successor Law and HAL.

Section 2. Terms of Promissory Note. To evidence the CCNC Initial Loan the Authority shall execute a promissory note attached hereto as Exhibit A and fully incorporated by this reference (“Note”). The Note shall be repaid by the Authority to the City from unencumbered and available funds in the LMIHAF and subject to the Authority’s authority and ability to make certain finding under HSC 34176.1. The Note shall be repaid in annual installment payments due on July 15 each year until the CCNC Initial Loan Amount is paid in full, or repaid earlier pursuant to Section 2.4 below.

2.1 Interest and Security. The Note shall accrue no (0%) interest. The intent of the City is to advance the provision of housing, shelter, and services to assist homeless persons and families and overall address the issue of homelessness in Fountain Valley in furtherance of the adopted policies of the General Plan, Housing Element, HAL, Housing Successor Law, and other applicable federal, state, county, and local laws, regulations, and programs.

5 4865-2379-6536v3/200348-0008

2.2 Repayment. The principal shall be paid by the Authority to the City when and as funds are available in the LMIHAF pursuant to the HAL and Housing Successor Law and not necessary for administration of the Authority as housing successor, or for other Authority projects, enforceable obligations, or any other mandated payments due from the Authority to a third party.

2.3 Maturity Date. The “Maturity Date” of the Note and thereby outside date for repayment of remaining principal due under the Note by the Authority to the City is the date that is ten (10) years from the date of such Note; provided, however, the City may, for good cause, extend the term of the Note and due date by up to ten (10) additional one (1) year periods, or to such other time as the Parties may agree, as reasonably evaluated and determined based on then current and anticipated cash flow to the Authority.

2.4 Prepayment. Authority may pay the principal due the City under the Promissory Note prior to or in advance of the time for payment under the Note, without penalty.

2.5 Assumption. The Note shall not be assumable by successors and assigns of Authority or City without the prior written consent of the other Party, which consent shall not unreasonably be withheld, unless mandated by law or an order of a court of competent jurisdiction. Each Party agrees to exercise reasonable efforts to assist the other Party in the undertaking of the due diligence reasonably necessary to accomplish the assumption of the Note by an approved third party.

Section 3. Indebtedness. The obligations of the Authority under this Cooperation Agreement shall constitute an indebtedness of the Authority for the purposes of addressing the issue of homelessness in the community, which indebtedness shall be payable from monies available in the Authority’s LMIHAF, including without limitation monies generated loan payoffs to the housing successor under the Housing Successor Law, and other monies deposited into other Authority accounts, if any, as and if such other funds become available and eligible to pay the indebtedness under the Note.

Notwithstanding anything to the contrary set forth in this Cooperation Agreement, the Authority’s payment obligation hereunder is not, and shall not be deemed to be, a pledge of revenues of the Authority. The indebtedness of Authority under this Cooperation Agreement shall be subordinate to the rights of the holder or holders of any existing bonds, notes, or other instruments of indebtedness (all referred to herein as “indebtedness”), if any, of the Authority. The indebtedness of the Authority by this Cooperation Agreement and under the Note is and shall remain an unsecured obligation of the Authority to the City.

Section 4. Future Additional Funding by Authority of City’s Funding Obligations for the CCNC.

4.1 As described in the Recitals, the Authority desires to continue to invest in the community to address the issue of homelessness in Fountain Valley and to implement the CCNC MOU. (a) Homeless Prevention And Rapid Rehousing Services. Under HSC Section 34176.1(a)(2) from monies on deposit and available in the LMIHAF and in furtherance of the operation of the Central Cities Navigation Center, “the housing successor may expend up to two hundred fifty thousand dollars ($250,000) per fiscal year for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or medium-term rental assistance, contributions toward the construction of local or regional homeless shelters, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility

6 4865-2379-6536v3/200348-0008
payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.” To this end, the Housing Authority on an annual basis desires to appropriate in its annual budget an amount up to but not exceeding $250,000 for homeless prevention and rapid rehousing services pursuant and subject to the requirements of the Housing Successor Law and HAL. The annual amount each fiscal year for such funding shall be and remain within the sole discretion of the Housing Authority and is subject to the requirements set forth in the Housing Successor Law and HAL.
(b) Transfer by Authority as Housing Successor for CNCC Payment Obligations.

Under HSC Section 34176.1(c)(2) from monies on deposit and available in the LMIHAF and in furtherance of the development and operation of the Central Cities Navigation Center, the Housing Authority, as housing successor, and subject to the conditions set forth therein, may join with each or both of the Garden Grove Housing Authority and Westminster Housing Authority, that both and each serve as the housing successor under the Housing Successor Law, “to enter into an agreement to transfer funds among their respective Low and Moderate Income Housing Asset Funds for the sole purpose of developing transit priority projects as defined in subdivisions (a) and (b) of Section 21155 of the Public Resources Code, permanent supportive housing as defined in paragraph (2) of subdivision (b) of Section 50675.14, housing for agricultural employees as defined in subdivision (g) of Section 50517.5, or special needs housing as defined in federal or state law or regulation, or for a regional homeless shelter, …” To this end, the Housing Authority on an annual basis desires to appropriate in its annual budget an amount up to but not exceeding $1,000,000 in furtherance and operation of the CCNC, pursuant and subject to the requirements of the Housing Successor Law and HAL. The annual amount each fiscal year for such funding shall be and remain within the sole discretion of the Housing Authority and is subject to the requirements set forth in the Housing Successor Law and HAL.

4.2 Additional Loan Amounts, If Necessary. In furtherance of the cooperative and collaborative efforts of the City and Housing Authority to fund the CCNC, it may be necessary to for the City to provide additional loan or loans to the Housing Authority to be repaid by the Housing Authority from the LMIHAF (or other available and eligible funding source(s)) pursuant to the terms of this Cooperation Agreement and implementing amendments, modifications or additional agreements and instruments, which will be negotiated in good faith between the City and Housing Authority at such time as and when necessary, and subject to the Housing Successor Law, HAL and other applicable laws and regulations.

Section 5. Representations and Warranties.

5.1 Representations and Warranties of Authority. Authority hereby represents and warrants to City: (a) it is a public body, corporate and politic, duly existing pursuant to the HAL and serves as the housing successor to the Former Agency pursuant to the Housing Successor Law; (b) it is authorized to transact business pursuant to action of the City Council; (c) it is authorized to borrow funds, including from the City, and to pay back such loans, including to enter into the CCNC Initial Loan as contemplated hereunder and by the Second MOU; (d) it is authorized to execute and deliver documents or instruments pursuant to this Cooperation Agreement, subject to the terms and provisions of this Cooperation Agreement, and (e) the persons who sign this Cooperation Agreement are authorized to execute and deliver the same for and on behalf of Authority.

7 4865-2379-6536v3/200348-0008

5.2 Representations and Warranties of City. City represents and warrants to Authority: (a) it is a municipal corporation; (b) it has full right, power, and lawful authority to enter into this Cooperation Agreement; and (c) the execution, performance and delivery of this Cooperation Agreement by City, and persons on behalf of City, have been fully authorized by all requisite actions on the part of the City Council of the City.

Section 6. Default. If either Party fails to perform or adequately perform an obligation required by this Cooperation Agreement within thirty (30) calendar days after receiving written notice from the non-defaulting Party, the Party failing to perform shall be in default hereunder. Such written notice shall clearly describe the nature of the alleged failure to perform any obligation under this Cooperation Agreement. In the event of default, the non-defaulting Party will have all the rights and remedies available to it at law or in equity to enforce the provisions of this Cooperation Agreement, including without limitation the right to sue for damages for breach of contract. The rights and remedies of the non-defaulting Party enumerated in this paragraph are cumulative and shall not limit the non-defaulting Party's rights under any other provision of this Cooperation Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the Agreement or hereinafter enacted or established, that may be available to the non-defaulting Party against the defaulting Party.

Section 7. Force Majeure. In the event the performance of any obligation is delayed due to causes which are outside the control of both Parties and their agents, and could not be avoided by the exercise of due care, which causes may include, but are not limited to, delays by regulatory agencies, wars, terrorism, floods, adverse weather conditions, labor disputes, earthquakes, fires, incidence of disease or other illness that reaches outbreak, epidemic and/or pandemic proportions, riots, civil commotion or other unavoidable casualties, both Parties will be entitled to an extension in time for performance equivalent to the length of delay. Neither Party is entitled to compensation from the other Party for such force majeure events.

Section 8. General Provisions.

8.1 Authority Approvals and Actions. Authority shall maintain authority of this Cooperation Agreement and the authority to implement this Cooperation Agreement through the Authority Executive Director and/or Chairperson (or their duly authorized representatives). The Authority Executive Director and Chairperson shall each have the authority to make approvals, issue interpretations, waive provisions, and/or enter into certain amendments of this Cooperation Agreement on behalf of Authority so long as such actions do not add to the costs incurred or to be incurred by Authority as specified herein, and such approvals, interpretations, waivers and/or amendments may include extensions of time to perform. All other material and/or substantive interpretations, waivers, or amendments shall require the consideration, action, and written consent of the Authority Board.

8.2 City Approvals and Actions. City shall maintain authority of this Cooperation Agreement and the authority to implement this Cooperation Agreement through the City Manager, Mayor, or Mayor ProTem (or their duly authorized alternates or representatives). The City Manager, Mayor, or Mayor ProTem shall each have the authority to make approvals, issue interpretations, waive provisions, and/or enter into certain amendments of this Cooperation Agreement on behalf of City so long as such actions do not add to the costs incurred or to be incurred by City as specified herein, and such approvals, interpretations, waivers and/or amendments may include extensions of time to perform. All other material and/or substantive interpretations, waivers, or amendments shall require the consideration, action, and written consent of the City Council.

8 4865-2379-6536v3/200348-0008

8.3 Time. Time is of the essence in this Cooperation Agreement.

8.4 Notices. Any notice requirement set forth herein shall be deemed to be satisfied as follows: (i) three (3) days after mailing of the notice first class United States certified mail, postage prepaid, or (ii) the next business day after the notice or communication has been delivered by hand or sent by telecopy or overnight delivery service, addressed to the appropriate party. The designated person for delivery of notices hereunder shall be as follows: (i) to the Authority Executive Director, for notices to Authority, and (ii) to the City Manager for notices to City.

8.5 Attorneys’ Fees. If either party brings an action or proceeding to enforce, protect or establish any right or remedy hereunder, the prevailing party shall be entitled to recover from the other party its costs of suit and reasonable attorneys’ fees.

8.6 No Third Parties Benefited. This Cooperation Agreement is made and entered into for the sole protection and benefit of Authority, its successors and assigns, and City, its successors and assigns, and no other person or persons shall have the right of action hereon.

8.7 Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the Parties, if any.

8.8 Construction of Words. Except where the context otherwise requires, words imparting the singular number shall include the plural number and vice versa, words imparting persons shall include firms, associations, partnerships and corporations, and words or either gender shall include the other gender.

8.9 Partial Invalidity. If any provision of this Cooperation Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

8.10 Governing Law. This Cooperation Agreement and instruments given pursuant hereto, if any, shall be construed in accordance with and be governed by the laws of the State of California.

8.11 Captions and Headings. Captions and headings in this Cooperation Agreement are for convenience of reference only, and are not to be considered in construing the Agreement.

8.12 Number of Originals. This Cooperation Agreement shall be executed in duplicate, one each for City and Authority’s official files, and each of the duplicates is deemed to be an original.

8.13 Counterparts. This Cooperation Agreement may be executed in counterparts, which when taken together, shall constitute a single signed original as though all Parties had executed the same page.

8.14 Waivers and Amendments. All waivers of the provisions of this Cooperation Agreement and any and all modifications or amendments to this Cooperation Agreement must be in writing and signed by the authorized representatives of the each of the Parties. If an amendment to this Cooperation Agreement will not result in an increase in the total amount of funds anticipated and/or appropriated and will not require the adoption of any resolution or ordinance pursuant to applicable laws or regulations, then such amendment may be agreed to and executed by the City Manager or authorized designee on behalf of the City and the Authority Executive Director or authorized designee

9 4865-2379-6536v3/200348-0008
on behalf of the Authority. All other amendments must be approved by the respective governing bodies of the Parties.

8.15 Severability. If any term, provision, covenant, or condition of this Cooperation Agreement is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such judicial determination.

8.16 Cooperation. Each Party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Cooperation Agreement including, but not limited to, releases or additional agreements.

8.17 Liability and Indemnification. In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of such Code, the Parties, as between themselves, pursuant to the authorization contained in Sections 895.4 and 895.6 of such Code, will each assume the full liability imposed on it, or any of its officers, agents or employees by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Cooperation Agreement to the same extent that such liability would be imposed in the absence of Section 895.2 of such Code.
(a) To achieve the above-stated purposes, each party indemnifies and holds harmless the other party for any loss, costs or expense that may be imposed upon such other party solely by virtue of such Section 895.2. The provisions of Section 2778 of the California Civil Code are made a part hereof as if fully set forth herein. Each Party recognizes and agrees that City is insured by a joint insurance pool and imposed, from time to time, by the City’s insurer. The Authority agrees to accept and accommodate the terms and conditions of the City’s insurer whenever relevant to or with jurisdiction over any aspect of the implantation of this Section B.

8.18 Effective Date. This Cooperation Agreement shall take effect from and after the date of adoption and approval hereof by each of the Authority and City; the last Party to execute this Cooperation Agreement shall establish the Effective Date via the execution of this Cooperation Agreement.
[Cooperation Agreement continues on next page]
IN WITNESS WHEREOF, the parties hereto have executed this Cooperation Agreement (Central Cities Navigation Center) as of the date first set forth above.

CITY:

CITY OF FOUNTAIN VALLEY, a California
municipal corporation
By:

Mayor or Authorized Designee
ATTEST:

10 4865-2379-6536v3/200348-0008
Rick Miller, City Clerk
or Authorized Designee
APPROVED AS TO FORM:

HARPER & BURNS
Colin R. Burns, City Legal Counsel
or Authorized Designee
HOUSING AUTHORITY:

FOUNTAIN VALLEY HOUSING AUTHORITY,
a public body, corporate and politic
By:

Chair or Authorized Designee
ATTEST:

Rick Miller, Authority Secretary
or Authorized Designee
APPROVED AS TO FORM:

STRADLING YOCCA CARLSON & RAUTH
Celeste Stahl Brady, Esq., Special Counsel

4865-2379-6536v3/200348-0008

EXHIBIT A

PROMISSORY NOTE
(Central Cities Navigation Center)
$940,000.00 Fountain Valley, California
November __, 2022
FOR VALUE RECEIVED, as obligor, the undersigned FOUNTAIN VALLEY HOUSING AUTHORITY, a public body corporate and politic organized and existing pursuant to Health and Safety Code Section 34200, et seq., and Section 34176 and 34176.1 (“Authority”), promises to pay to the CITY OF FOUNTAIN VALLEY, a California municipal corporation, (“City”) or order at the City of Fountain Valley City Hall, 10200 Slater Avenue, Fountain Valley, California 92708, or such other place as the City may designate in writing, the principal sum of Nine Hundred Forty Thousand Dollars ($940,000.00) or such lesser amount as disbursed by the Authority pursuant to that certain Cooperation Agreement described below. All payments shall be to principal sum then due and owing to City.

Section 1. Cooperation Agreement. This Promissory Note (“Note”) is issued by the Authority to and for the benefit of the City and given in accordance with the Cooperation Agreement (Central Cities Navigation Center) executed by and between the City and the Authority, dated as of November 1, 2022 (“Cooperation Agreement”). The rights and obligations of the City under this Note shall be governed by the Cooperation Agreement, State, and local housing law and by the additional terms set forth in this Note. Capitalized terms used in this Note are as defined in the Cooperation Agreement or as otherwise defined in this Note.

Section 2. Terms of Note.

2.1 Repayment. The principal shall be paid by the Authority to the City when and as funds are available in the LMIHAF pursuant to the HAL and Housing Successor Law and not necessary for administration of the Authority as housing successor, or for other Authority projects, enforceable obligations, or any other mandated payments due from the Authority to a third party.

Interest and Security. This Note shall not accrue interest (0%); the waiver of interest is a bona fide and good faith incentive of and by the City to facilitate and address the homelessness issues in Fountain Valley and to support development and operation of the Central Cities Navigation Center located in Garden Grove and to provide necessary supportive services and decent, safe and sanitary housing for homeless persons and those at risk of becoming homeless. The indebtedness of the Authority under this Note is and shall remain an unsecured obligation of the Authority to the City.

Maturity Date. The Maturity Date of this Note and thereby outside date for repayment of remaining principal due under this Note by the Authority to the City is the date that is ten (10) years from the date of this Note; provided, however, the City may, for good cause, extend the term of this Note and due date by up to ten (10) additional one (1) year periods, or to such other time as the Parties may agree, as reasonably evaluated and determined based on then current and anticipated cash flow to the Authority.

2.2 Prepayment. Authority may pay the principal due the City under the Promissory Note prior to or in advance of the time for payment under this Note, without penalty.

4865-2379-6536v3/200348-0008

2.3 Assumption. This Note shall not be assumable by successors and assigns of Authority or City without the prior written consent of the other Party, which consent shall not unreasonably be withheld, unless mandated by law or an order of a court of competent jurisdiction.

Each Party agrees to exercise reasonable efforts to assist the other Party in the undertaking of the due diligence reasonably necessary to accomplish the assumption of this Note by an approved third party.

2.4 Term of Payment. Any payment under this Note shall be paid in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts.

Section 3. Penalty. In the event the Authority fails to make the annual payment as required under this Note, subject to the availability of funds in the LMIHAF, the Authority shall pay to the City a late charge of five percent (5%) of the overdue amount and an additional five percent (5%) of the overdue amount for each calendar month such amount remains unpaid.

Section 4. Waivers.

4.1 Extensions. Authority agrees that this Note or any payment hereunder may be extended from time to time at the City’s sole discretion.

4.2 No Release. No extension of time for payment of this Note or any installment hereof made by agreement by the City with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change, or affect the original liability of Authority under this Note, either in whole or in part.

4.3 No Offset. The obligations of Authority under this Note shall be absolute and Authority waives any and all rights to offset, deduct or withhold any payments or charges due under this Note for any reasons whatsoever.

Section 5. Attorney Fees and Costs. Authority agrees that if any amounts due under this Note are not paid when due, to pay in addition, all costs and expenses of collection and reasonable attorney fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed.

Section 6. Amendments and Modifications. This Note may not be changed orally, but only by an amendment in writing signed by authorized officials of the Authority and the City.

OBLIGOR:

FOUNTAIN VALLEY HOUSING AUTHORITY,
a public body, corporate and politic
By:

Chair

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: November 1, 2022
Members of the City Council
SUBJECT: Adopt A Resolution of the City Council of the City of Fountain Valley Appointing Sherry Johnson as Interim Budget Manager Government Code Section 21221(h) and Approving a Retired Annuitant Contract
Three-Year Strategic Goals
☐ Enhance 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
☒ Not applicable
EXECUTIVE SUMMARY:

City Council to adopt a resolution appointing Sherry Johnson, as the Interim Budget Manager, and approve a retired annuitant contract.

DISCUSSION:

The City currently has an active recruitment open to find a permanent replacement to fill the Budget Manager role. The City Manager has a desire to maintain continuity in the Finance Department and by appointing an interim Budget Manager is necessary to fill a critically needed position until a permanent replacement is appointed. The term of the agreement is effective as of October 24, 2022 and shall remain and continue in effect until and including October 24, 2023, or until the successful hiring of a permanent Budget Manager, whichever occurs first.

Sherry is a retired Finance Director for the City of Westminster. Sherry served as the Interim Finance Director for Fountain Valley while the City completed a recruitment and selection of a permanent Finance Director, Ryan Smith. The Finance Department currently is recruiting for a Budget Manager and has an upcoming Accounting Manager retirement later this month. Sherry has the necessary skills and experience to assist the department with the Budget Manager critical functions and responsibilities during the vacancy. The appointment will not exceed 960 hours within a fiscal year and will be compensated, at Step 5 of the Budget Manager, Range P58. The classification salary range is listed on the City’s Salary Schedule and made publically

Approve Employment Contract
November 1, 2022

available on the City’s website. The interim appointment is not eligible for any other forms of pay, benefits or leave accruals while serving in a retired annuitant appointment.

Due to the Public Employees’ Pension Reform Act of 2013 (PEPRA, Assembly Bill 340), Senate Bill 1021 & Senate Bill 13 established new requirements for post-retirement employment of CalPERS retirees. Effective January 1, 2013, retirees can be hired into retired annuitant interim positions approved by the governing body of the employer, as authorized by Government Code sections 7522.56 and 21221(h) during an active recruitment for a permanent replacement for the vacant position. Sherry has met the requirements under the above government codes and has bona fide separation in service of 180-day wait period or more.

FISCAL REVIEW:

Budget Includes Sufficient Funding
Funds allocated in Fiscal Year 2022-2023 to the salary of the full-time Budget Manager position can be applied to the Interim Budget Manager position.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

Attorneys for the City have reviewed and approved this agreement as to form.

ALTERNATIVES:

Alternative No. 1:

Alternative No. 2:

RECOMMENDATION:

Adopt a Resolution appointing Sherry Johnson as an Interim Budget Manager and approving a Retired Annuitant Contract.

Do not adopt a Resolution Appointing Sherry Johnson as an Interim Budget Manager and do not approve a Retired Annuitant Contract.

Staff is requesting City Council approval of Alternative No. 1 to Adopt a Resolution appointing Sherry Johnson as an Interim Budget Manager and approving a Retired Annuitant Contract.

Prepared by: Carrie Hanes, Human Resources Director
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

Approve Employment Contract
November 1, 2022

1. Resolution

2. Retired Annuitant Contract

1 ATTACHMENT 2

CITY OF FOUNTAIN VALLEY
RETIRED ANNUITANT – INTERIM BUDGET MANAGER
This Agreement (“AGREEMENT”) is made and entered into as of November 1, 2022, between the City of Fountain Valley, a municipal corporation, hereinafter referred to as “CITY” and Sherry Johnson, an individual, hereinafter referred to as “RETIRED ANNUITANT.” In consideration of the mutual promises and covenants contained herein, the parties hereto mutually agree as follows:

SECTION 1. RECITALS. This AGREEMENT is made and entered into with respect to the following facts:
a. The CITY is desirous of obtaining the services of a qualified person to provide services to temporarily staff the vacant Budget Manager position as Interim pursuant to Government Code 21221 (h); and
b. The City Council has determined that the public interest, convenience and necessity require execution of this AGREEMENT. c. The employment shall be limited to 960 hours per fiscal year. d. A Government Code 21221(h) appointment may only be made once with this agency.
e. The compensation to be paid RETIRED ANNUITANT cannot be less than the minimum, and may not exceed the maximum, monthly base salary paid to other employees performing comparable duties pursuant to a publicly posted pay schedule, divided by 173.33, to equal the hourly rate.
f. In compliance with Government Code 7522.56, the City Council may not retain a retired annuitant prior to 180 days from the date of the employee’s retirement.

SECTION 2. SERVICES. RETIRED ANNUITANT shall serve as the CITY's Interim Budget Manager (hereafter “POSITION”) and provide all necessary functions of such position attendant thereto.

SECTION 3. PERFORMANCE. RETIRED ANNUITANT shall at all times faithfully, competently and to the best of his/her ability, experience, and talent perform all tasks described herein. RETIRED ANNUITANT shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of RETIRED ANNUITANT hereunder in meeting his obligations under this AGREEMENT.

SECTION 4. EXTRA SERVICES. No extra services shall be rendered by RETIRED ANNUITANT under this AGREEMENT unless such extra services have

2 first been duly authorized in writing by the CITY.

SECTION 5. CITY SUPERVISION. The City Manager shall have the right of general supervision of all work performed by RETIRED ANNUITANT.

SECTION 6. PAYMENT. The CITY agrees to pay RETIRED ANNUITANT at the hourly rate of $65.94 per hour, which is within the salary range of the classification for Budget Manager, and RETIRED ANNUITANT will not receive any other benefit, incentive, or compensation in lieu of benefit, or other form of compensation in addition to the hourly pay rate.

SECTION 7. SUSPENSION, TERMINATION, OR ABANDONMENT OF
AGREEMENT. CITY may, with or without cause, at any time, immediately suspend, terminate, or abandon this AGREEMENT, or any portion hereof, by service upon RETIRED ANNUITANT of written notice. Upon receipt or delivery of said notice, RETIRED ANNUITANT shall immediately cease all work under this AGREEMENT, unless the notice provides otherwise. RETIRED ANNUITANT may, with or without cause, at any time, suspend, terminate, or abandon this AGREEMENT, or any portion hereof, by service upon CITY of at least thirty (30) days prior written notice.

SECTION 8. TERM. This AGREEMENT is effective as of October 24, 2022 and shall remain and continue in effect until and including October 24, 2023, or the successful hiring of a permanent Budget Manager, or earlier termination as provided for under this AGREEMENT, whichever occurs first.

SECTION 9. OWNERSHIP OF DOCUMENTS. Upon satisfactory completion of, or in the event of termination, suspension, or abandonment of, this AGREEMENT, all original documents, designs, drawings, notes, reports, documents, drives, floppy disks, diskettes or other materials prepared, developed or discovered by RETIRED ANNUITANT during the course of providing the services to be performed pursuant to this AGREEMENT shall become the sole property of the CITY and may be used, reused or otherwise disposed of by the CITY without the permission of the RETIRED ANNUITANT. Upon completion, expiration or termination of this AGREEMENT, RETIRED ANNUITANT shall turn over to the CITY all original documents, designs, drawings, notes, reports, documents, floppy disks, drives, diskettes or other materials prepared, developed or discovered by RETIRED ANNUITANT during providing the services to be performed pursuant to this AGREEMENT.

SECTION 10. RETIRED ANNUITANT. RETIRED ANNUITANT is hired in conformance with CalPERS regulations governing the use of retired annuitants.

RETIRED ANNUITANT has specialized skills to perform the duties of the POSITION.

No employee benefits shall be available to RETIRED ANNUITANT in connection with the performance of this AGREEMENT. Except for RETIRED ANNUITANT's hourly compensation as provided for in this AGREEMENT, CITY shall not pay salaries, wages, benefits or other compensation to RETIRED ANNUITANT for performing services hereunder.

SECTION 11. NOTICE. Whenever it is necessary for either party to serve written

3 notice on the other regarding this AGREEMENT, such notice shall be served personally or by certified mail, postage prepaid, return receipt requested, unless and until different addresses may be furnished in writing by either party to the other, addressed to:

CITY: RETIRED ANNUITANT
City of Fountain Valley Sherry Johnson
10200 Slater Avenue 16421 Jody Circle
Fountain Valley, CA 92708 Westminster, CA 92683
Attn: City Clerk
Notice shall be deemed to have been served seventy-two (72) hours after the same has been deposited in the United States Postal Service or upon receipt, whichever occurs first. This shall be valid and sufficient service of notice for all purposes.

SECTION 12. CONFLICTS OF INTEREST. RETIRED ANNUITANT covenants that he or she has no interest, and shall not acquire any interest, directly or indirectly, which will conflict in any manner or degree with the performance of his or her services hereunder. RETIRED ANNUITANT further covenants that he/she has not contracted with nor is performing any services directly or indirectly with any developer(s) and/or property owner(s) and/or firm(s) and/or partnerships owning property in the CITY and further covenants and agrees that RETIRED ANNUITANT shall provide no services to or enter into any agreement or agreements with any developer(s) and/or property owner(s) and/or firm(s) doing business in the CITY prior to the completion of the work under this AGREEMENT without the express written consent of the City Council.

SECTION 13. ENTIRE AGREEMENT. This AGREEMENT contains the entire understanding between CITY and RETIRED ANNUITANT. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this AGREEMENT shall be effective only if in writing and signed by all parties. If any term, condition, or covenant of this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this AGREEMENT shall be valid and binding.

SECTION 14. WAIVER. Waiver by any party hereto of any term, condition, or covenant of this AGREEMENT shall not constitute the waiver of any other term, condition, or covenant hereof.

SECTION 15. BINDING EFFECT. This AGREEMENT shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto.

SECTION 16. LICENSED STATUS. RETIRED ANNUITANT shall, at all times during the term of this AGREEMENT, have in full force and effect all licenses required by law. CITY desires the personal services of RETIRED ANNUITANT and this AGREEMENT is not transferable or assignable.

4 SECTION 17. GOVERNING LAW. This AGREEMENT shall be interpreted and construed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Orange.

SECTION 18. UNEMPLOYMENT INSURANCE CERTIFICATION. Pursuant to Government Code section 7522.56, by signing this AGREEMENT, RETIRED ANNUITANT certifies that he or she has not received unemployment insurance payments from any public employer within 12 months prior to the effective date of this AGREEMENT.

IN WITNESS, WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year first above written.

CITY OF FOUNTAIN VALLEY RETIRED ANNUITANT
___________________________ _________________________
Patrick Harper Sherry Johnson
Mayor
ATTEST:
___________________________
Rick Miller
City Clerk
Approved to Form:

Harper & Burns LLP
___________________________
Colin Burns
Attorneys for the City

ATTACHMENT 1
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY APPOINTING SHERRY JOHNSON
INTERIM BUDGET MANAGER Government Code Section
21221(h) AND APPROVING RETIRED ANNUITANT

CONTRACT
WHEREAS, Government (Gov.) Code section 21221(h) of the Public Employees’ Retirement Law permits the governing body to appoint a CalPERS retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and
WHEREAS, the City Council desires to appoint Sherry Johnson as an interim appointment retired annuitant to the vacant position of Interim Budget Manager for the City of Fountain Valley under Gov. Code section 21221(h), effective October 24, 2022; and WHEREAS, the City Council, the City of Fountain Valley and Sherry Johnson certify that Sherry Johnson has not and will not receive a Golden Handshake or any other retirement-related incentive; and
WHEREAS, an appointment under Gov. Code section 21221(h) requires the retiree is appointed into the interim appointment during recruitment for a permanent appointment; and
WHEREAS, the governing body has authorized the search for a permanent appointment prior to October 24, 2022; and
WHEREAS, this Gov. Code section 21221(h) appointment shall only be made once and therefore will end on October 24, 2023 or date of appointment of a permanent budget manager, whichever comes first; and
WHEREAS, the entire employment agreement, contract or appointment document between Sherry Johnson and the City of Fountain Valley has been reviewed by this body and is attached herein; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum base monthly salary for this position is $11,429.85 and the hourly equivalent is $65.94; the minimum monthly base salary for this position is

$9,403.36 and the hourly equivalent is $54.25; and
WHEREAS, the hourly rate paid to Sherry Johnson will be $65.94; and WHEREAS, Sherry Johnson has not and will not receive any other benefit, incentive, compensation in lieu of benefit or other form of compensation in addition to this hourly pay rate; and
THEREFORE, BE IT RESOLVED THAT the City Council hereby certifies the nature of the employment of Sherry Johnson as described herein and detailed in the attached employment agreement and that this appointment is necessary to fill the critically needed position of Interim Budget Manager for the City of Fountain Valley effective October 24, 2022 because the critical need for a budget manager to manage City finances and allow payments to be made and critically needed projects to move forward.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting thereof held on the1st day of November, 2022.

Patrick Harper, Mayor
ATTEST:

Rick Miller, City Clerk-Administrator
APPROVED AS TO FORM:

HARPER & BURNS LLP
Colin Burns, Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST

To: The Honorable Mayor and Agenda Date: November 1, 2022 Members of the City Council

SUBJECT: Introduction and first read of an ordinance adopting by reference the 2022 Edition of the California Fire Code as modified, and set a public hearing, second reading, and adoption of the ordinance on November 15, 2022.

Three-Year Strategic Goals
☐ Enhance 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
☒ Not applicable

EXECUTIVE SUMMARY
The California Health and Safety Code mandates that every three (3) years the California Building Standards Code be updated for all cities and counties throughout the state in order to adopt the code with local amendments.1 This includes the California Fire Code.

However, each city may amend, add, or repeal portions of the Building Standards Code by local ordinance provided the City Council makes express findings that the amendments or modifications are reasonably necessary because of local climatic, geological, or topographical conditions.2 If the City Council approves the attached ordinance and resolution, the most recent 2022 Edition of the California Fire Code with the applicable amendments will become effective January 1, 2023, as required by State Law.
1 Health and Safety Code § §17922; 17958.
2 Health and Safety Code §§ 17958.5; 17958.7.

Adoption of the Building Standards Code, including the Fire Code, requires two (2) City Council meetings as follows: First meeting is to introduce the Ordinance (November 1, 2022); and the second meeting is set for a public hearing to adopt the Ordinance with the express findings.3

DISCUSSION
The California Building Standards Commission (“CBSC”) is charged with approving and publishing the California Building Standards Code under Title 24 of the California Code of Regulations.4 Cities are required to adopt the most recent version of the State Building Standards Code, which includes the California Fire Code.5 On July 1, 2022, the 2022 Edition of the California Fire Code was published. The City is mandated to enforce the 2022 edition of the California Fire Code starting January 1, 2023.6 Cities are allowed to make modifications or changes to the California Building Standards Code, including the Fire Code, which is reasonably necessary because of local topographical, climatic, and geographical conditions.7 Before making any modifications or changes to the 2022 California Fire Code, the City Council must make express findings that such changes are reasonably necessary due to the local conditions of the City of Fountain Valley.8 Any modifications made via local ordinance must be filed, along with the findings thereto, with the CBSC for approval.9
The Fountain Valley Fire Department has recommended that changes and modifications be made to the 2022 California Fire Code and have advised that certain said changes and modifications to the 2022 California Fire Code are reasonably necessary due to local conditions in the City of Fountain Valley. The following changes are proposed based on the express findings that such changes are reasonably necessary due to the local conditions of the City of Fountain Valley as described in the attached resolution:
3 Government Code § 50022.3.
4 Health and Safety Code §17922.
5 Health and Safety Code §17958.
6 Health and Safety Code §18941.5.
7 Health and Safety Code §17958.5.
8 Health and Safety Code §17958.7.
9 Id.

CODE

SECTION
TITLE (Clarification) FINDINGS
111.1 Board of Appeals Administrative
307.6 Fire Pits, Fire Rings, & Outdoor Fireplaces Administrative; A1; A2 308.1.6.3 Sky lanterns A1; A2; B3
407.5 Hazardous material inventory statement A1; A2; B1 501 .1 Fire Service Features Administrative; B1; B2;
B3; B4
510.1 Emergency responder radio coverage Administrative; B1; B2; B3; B4
903.2 Where required (Sprinklers) A1; A2; B1; B2; B3; B4 5001.5.2 Hazardous materials inventory statement Administrative 5003.1.1.1 Extremely hazardous substances A1; A2; B3
5601.1.3 Fireworks Administrative; A1; A2;
B3
5701.1.1 On-Demand Mobile Fueling Administrative

Attached is the ordinance adopting by reference the 2022 Edition of the California Fire Code with modifications and a resolution making the express findings that the modifications and amendments are reasonably necessary due to the local climatic, geographic, or topographical conditions of the City of Fountain Valley.

Beginning January 1, 2023, the 2022 Edition of the California Fire Code will operate as the fire code in Fountain Valley until the findings and ordinance are filed with and approved by the CBSC.

ATTORNEY REVIEW
Attorneys for the City have reviewed and approved all changes.

ALTERNATIVES
Alternative 1: Approve the introduction and first read of an ordinance adopting by reference the 2022 Edition of the California Fire Code as modified, and set a public hearing, second reading, and adoption of the ordinance on November 15, 2022.

Alternative 2: Deny this request and instruct staff to provide citizen safety under the 2022 Edition of the California Fire Code without local amendments.

RECOMMENDED ACTION
Staff recommends Council: Approve the introduction and first read of an ordinance adopting by reference the 2022 Edition of the California Fire Code as modified, and set a public hearing, second reading, and adoption of the ordinance on November 15, 2022.

Prepared by: Michelle Rudaitis, Fire Marshal
Reviewed by: Ron Cookston, Fire Chief
Reviewed by: Alexandra Halfman, Attorneys for the City
Approved by: Maggie Le, City Manager
Attachment 1: Ordinance adopting by reference the 2022 Edition of the California Fire Code with modifications
Attachment 2: Resolution of express findings required for local modification and amendment of the 2022 Edition of the California Fire Code 5809.1 Scope Administrative
B105.1 Scope Administrative; A1; A2;
B3; B4

ORDINANCE NO. _____

AN ORDINANCE OF THE FOUNTAIN VALLEY CITY COUNCIL
REPEALING TITLE 17 OF THE FOUNTAIN VALLEY MUNICIPAL CODE AND ENACTING TITLE 17 FIRE PREVENTION WHICH ADOPTS THE
CALIFORNIA FIRE CODE, 2022 EDITION, INCLUDING CHAPTER 1, DIVISION 2, AND ADMINISTRATIVE PROVISIONS LISTED HEREIN,

WITH AMENDMENTS AND MODIFICATIONS
WHEREAS, pursuant to Health and Safety Code section 17922, the California Building Standards Commission is charged with approving and publishing the California Building Standards Code under Title 24 of the California Code of Regulations; WHEREAS, pursuant to Health and Safety Code section 17958, cities are required to adopt the most recent version of the State Building Standards Code, which includes the California Fire Code;
WHEREAS, on July 1, 2022, the 2022 Edition of the California Fire Code was published;
WHEREAS, pursuant to Health and Safety Code section 18941.5, the City is mandated to enforce the 2022 edition of the California Fire Code starting January 1, 2023; WHEREAS, pursuant to Health and Safety Code section 17958.5, cities are allowed to make modifications or changes to the California Building Standards Code, including the Fire Code, which are reasonably necessary because of local topographical, climatic, and geographical conditions;
WHEREAS, pursuant to Health and Safety Code section 17958.7, the City Council, before making any modifications of changes to the 2022 California Fire Code, must make express findings that such changes are reasonably necessary due to local conditions of the City of Fountain Valley;
WHEREAS, contemporaneously herewith the City Council has made such findings and directed that they be submitted to the State forthwith; and WHEREAS, the City Council desires to adopt the 2022 Edition of the California Fire Code by reference with modifications thereto and as supported by the express findings made contemporaneously herewith.

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

SECTION 1
Title 17 of the Fountain Valley Municipal Code Section is hereby repealed in its entirety.

SECTION 2
Title 17 of the Fountain Valley Municipal Code Section is hereby enacted to read as follows:
“Title 17

FIRE PREVENTION
Chapter 17.02

FIRE CODE ADOPTED

17.02.02 California Fire Code Adopted with Modifications.

The California Fire Code, 2022 Edition, is hereby adopted with modifications. The adoption of the California Fire Code includes all of the inclusions and exclusions set forth in each chapter’s matrix provided that the following provisions excluded are hereby included: Chapter 1, Division 2 except that Section 111 is excluded; and sections 305, 307, 308, 503, 510.2 are included. The following provisions are hereby excluded: Chapter 3, Sections 308.1.6.3, 311.5 through 311.5.5, 318, and 319; Chapter 58, Section 5809.

Other modifications are made as hereinafter set forth in this Title 17 of the Fountain Valley Municipal Code and appropriate findings have been made and filed where required. The California Fire Code, which is based on the International Fire Code, is adopted as noted above and a copy is on file in the office of the City Clerk. This document shall be known and referred to hereafter as the “Fire Code” for the City of Fountain Valley.

17.02.040 Penalties.

Persons who violate a provision of Title 17 or fail to comply with any of the requirements thereof or who erect, install, alter, repair, or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor punishable as provided in Chapter 1.16 of the Fountain Valley Municipal Code. Each day that a violation continues after due notice has been served shall be deemed a separate offense.

17.02.060 Appeals.

Section 111.1 of the California Fire Code, 2022 Edition is amended to read as follows:

Notwithstanding Section 111.1, the Board of Appeals shall be the City Manager. If he determines an outside board is needed, he shall designate an outside hearing officer to hear the appeal.

Chapter 17.04

GENERAL REQUIREMENTS

17.04.020 Outdoor Fireplaces, Fire Pits, Fire Rings, or Similar Devices.

Section 307.6 of the California Fire Code, 2022 Edition is amended to read as follows:

Section 307.6 Outdoor Fireplaces, Fire Pits, Fire Rings, or similar devices used at Group R Occupancies. Outdoor fireplaces, fire pits, fire rings, or similar exterior devices used at Group R occupancies shall comply with this section.

Exception: Barbeques, grills, and other portable devices intended solely for cooking.

17.04.040 Sky Lanterns Prohibited.

Section 308.1.6.3 of the California Fire Code, 2022 Edition is amended to read as follows:
308.1.6.3 Sky lanterns. A person shall not ignite, release, or cause to be released a sky lantern.

Chapter 17.06

EMERGENCY RESPONSE SYSTEMS AND HAZARDOUS MATERIALS

17.06.020 Inventory Statement for Hazardous Materials.

Section 407.5 of the California Fire Code, 2022 Edition is amended to read as follows:
407. of the California Fire Code, 2022 Edition 5 Hazardous Materials Inventory Statement. Where required by the fire code official, each application for a permit shall be submitted in accordance with Section 5001.5.2.

17.06.040 Radio Coverage System in New Buildings.

Section 510.1 of the California Fire Code, 2022 Edition is amended to read as follows:
510.1 Emergency responder radio coverage in new buildings. (a) All new buildings shall have approved radio coverage for emergency responders within the building based upon the existing coverage levels of the public safety communication systems utilized by the jurisdiction, measured at the exterior of the building. This section shall not require improvement of the existing public safety communication systems. The Emergency Responder Radio Coverage System shall comply with the Orange County Sheriff’s Department, Communications and Technology Division guidelines and specifications and, where the functionality or

performance requirements in the California Fire Code are more stringent, this code.
(b) Subsection (a) shall not apply when it is determined by the fire code official that a radio coverage system is not needed for a building or structure, including but not limited to the following circumstances:

1. Existing buildings or structures, unless required by the Building Official and Fire Official for buildings and structures undergoing extensive remodel and/or expansion.

2. Elevators.

3. Structures that meet all of the following:
i. Three stories or less;
ii. Do not have subterranean storage or parking; and
iii. Do not exceed 50,000 square feet on any single story.

4. Structures that meet all of the following:
i. Residential structures four stories or less;
ii. Constructed of wood;
ii. Do not have subterranean storage or parking; and
iv. Are not built integral to an above-ground multi-story parking structure.
(c) If a structure is three stories or less, 50,000 square feet or smaller on any single story, and includes subterranean storage or parking, then subsection (a) shall apply only to the subterranean areas.
(d) In facilities where emergency responder radio coverage is required and such systems, components, or equipment required could have a negative impact on the normal operations of the facility, the fire code official shall have the authority to accept an automatically activated emergency radio coverage system.

17.06.060 Storage of Extremely Hazardous Substances.

Section 5003.1.1.1 Extremely Hazardous Substances is added to the California Fire Code, 2022 Edition read as follows:
5003.1.1.1 Extremely Hazardous Substances. No person shall use or store any amount of extremely hazardous substances (EHS) in excess of the disclosable amounts (see Health and Safety Code Section 25500 et al) in a residential zoned or any residentially developed property.

17.06.080 Fire Service Features
Section 501.1 of the California Fire Code, 2022 Edition is amended to read as follows:
501.1 Scope. Fire services features for buildings, structures, and premises shall comply with this chapter and, where required by the fire code official with FVFD Guideline, Fire Master Plan, and Commercial residential Development
Chapter 17.08
FEES

17.08.020 Work commencing before permit issuance.

Any person who commences any work, activity, or operation regulated by this code before obtaining the necessary permits shall be subject to a penalty equal to 100 percent of the required permit fee.

17.08.040 Refunds.

Refunds shall be issued at the permitees request at a rate of 60 percent of the original permit fee if no inspections took place on the permit. Plan review fees in the amount of 40 percent will be retained by the City.

Chapter 17.10

FALSE ALARMS

17.10.020 False Alarms.

False alarms shall not be given, signaled, transmitted, caused, or permitted to be given, signaled, or transmitted in any manner.
(a) The owner and any person in possession of any building shall be assessed a fee to be set by resolution whenever the Fire Department is required to respond to more than two false alarms during a one-year period consisting of January 1 – December 31 of any given year. Continued false alarms generated from the same location within the same one-year period shall also be assessed a fee set by resolution for each successive false alarm.
(b) Notwithstanding Subsection (a), whenever the Fire Department is required to respond to a false alarm while the system is being repaired or otherwise modified, and the person performing the work has failed to notify the Fire Department in advance that such work was being done, the persons performing the work shall also be assessed a fee set by resolution for each such occurrence.
(c) For purposes of this Section, “false alarm” shall mean the activation of any local or central station alarm because of malfunction, including, but not limited to, mechanical or electrical defects, water surges, or because of improper installation, operation testing or maintenance of such system. Whenever the Fire Department responds to the

location of a false alarm and finds that there is no evidence of a fire or of external causes beyond the control of the owner or person in possession that may have caused the alarm, the activation shall be presumed to be a false alarm. Not included as a false alarm will be those activations caused by earthquakes or other phenomena beyond the control of the owner or person in possession.
(d) Whenever an owner, person in possession, or alarm system workman is notified of such assessment and believes that he should be excused from paying because any occurrences did not constitute a false alarm, as defined above, he or she shall have the right to appeal said assessment to the Fire Chief within ten (10) calendar days of his receipt of the notice of assessment. The Fire Chief is authorized to excuse the assessment if he determines that a false alarm, as defined, did not occur. (e) Any person, firm, or corporation who receives notification of penalties due and fails to pay such penalties within the specified amount of time, no less than 30 days, a 10 percent per month late fee will be assessed until penalties have been paid.

Chapter 17.12

AUTOMATIC FIRE SPRINKLER SYSTEMS

17.12.020 Sprinkler systems required.

Section 903.2 of the California Fire Code, 2022 Edition is amended to read as follows:
903.2 Where Required. Automatic Fire Sprinklers shall be provided for the following:
(a) Notwithstanding any provision in Section 903.2 of the CFC and Section 903.2 of the CBC, approved automatic fire sprinklers shall be installed and maintained in accordance with N.F.P.A., Standard 13 when total square footage equals 3,500 square feet or more throughout all buildings as set forth.
(b) Any existing building shall be retrofitted with automatic fire sprinklers when a structure exceeds 3,500 square feet and additions or tenant improvements are made which exceed thirty (30) percent of the original building square footage.

Chapter 17.14

FIREWORKS

17.14.020 Fireworks prohibited.

Section 5601.1.3 of the California Fire Code, 2022 Edition is amended to read as follows:

Fireworks prohibited. The storage, sale, offer for sale, or handling of fireworks is prohibited. The provisions of this section do not apply to fireworks displays conducted in accordance with the provisions of any permit issued pursuant to this chapter and Title 19 of the California Code of Regulations, Chapter 6 – Fireworks Chapter 17.16

FLAMMABLE SUBSTANCES

17.16.020 On Demand Mobile Fueling.

Section 5701.1.1 On-Demand Mobile fueling is added to the California Fire Code, 2022 Edition as follows:

Section 5701.1.1 Mobile fueling. On-demand mobile fueling of Class I, II, and III liquids into the fuel tanks of vehicles is prohibited.

17.16.040 Mobile Fueling Prohibition.

Section 5809.1 of the California Fire Code, 2022 Edition is amended to read as follows:

Section 5809.1 General. Mobile fueling of gaseous and liquid hydrogen, compressed natural gas (CNG), and liquefied natural gas (LNG) into the fuel tanks of vehicles is prohibited.

Chapter 17.18

APPENDIX B

17.18.020 Appendix B105.1 Amended.

Appendix B105.1 of the California Fire Code, 2022 Edition is amended to read as follows:

Appendix B105.1. The minimum fire flow and flow duration for building other than one- and two-family dwellings shall be as specified in Table B105.1

Exceptions:

1. A reduction in required fire flow of up to 50 percent, as approved, is allowed when the building is provided with an approved automatic sprinkler system in accordance with Section 903.3.1.2. the resulting fire flow shall not be less than 1,500 gallons per minute for the prescribed duration as specified in Table B105.1.

Chapter 17.20

PARAMEDIC FEES

17.20.020 Paramedic Fees.
(a) Paramedic assessment fees are hereby established to be charged in connection with emergency medical services provided by the Fountain Valley fire department. The amount of such fees shall be set by resolution of the city council on the basis of voluntary subscription or actual use of the service. (b) There shall be two types of user fees as follows:
(1) The “voluntary subscription fee” shall be offered to residents of the city of Fountain Valley on a voluntary basis for the purpose of assuring subscribers they will not incur a higher direct fee should they require an emergency medical assessment. The voluntary subscription fee covers unlimited initial responses and assessments for medical emergencies to a residence, its inhabitants, and guests. The voluntary subscription fee does not cover separate advanced life support transport or service fees for services not rendered by the city of Fountain Valley.
(2) The “fee for services” shall be a charge designed to recover costs associated with the delivery of emergency medical assessment to persons that do not participate in the voluntary subscription fee system. Such fee for services shall be based on the actual cost of providing a paramedic assessment of the condition of the patient and covers services by paramedics and/or engine companies of the Fountain Valley fire department when a transport of the patient occurs. Different fees may be charged to residents and nonresidents that reflect the support provided to the fire department provided by general taxes, including property taxes.
(c) Any person requesting or benefitting from the services for which a fee for services is charged shall be jointly and severally civilly liable and indebted to the city of Fountain Valley for such fee for service.

17.20.040 Advanced life support fees.

In addition to the paramedic assessment fee, in cases in which a paramedic must accompany the patient to the hospital in an ambulance or other emergency vehicle, an advanced life support fee shall also be charged. The fee for such services shall cover the paramedic's time and materials spent providing medical accompaniment to the hospital and providing said accompaniment until the emergency room or other qualified staff of the hospital relieve the paramedic(s) of that responsibility.

17.20.060 Fees to be established by resolution.

The City council shall by resolution establish all paramedic assessment fees and advanced life support fees. Said fees shall be billed and collected by the city of Fountain Valley for voluntary subscription or fee for services charges for residents and non-residents.

Advanced life support fees shall also be established by resolution. Such fees shall be

established based on an analysis of the estimated reasonable cost of providing those services.

17.20.080 Collection of fees.

It shall be the duty of the fire department in coordination with the finance department to collect paramedic assessment fees and advanced life support fees. By contract, some or all of these fees may be collected by outside agencies, including, but not limited to, the city’s ambulance provider.”
SECTION 3
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 be subsequently declared invalid or unconstitutional. Neither the adoption of this ordinance nor the repeal of any ordinance shall in any manner affect the prosecution of a violation of ordinances which violations were committed prior to the effective date hereof, nor be construed as affecting any of the provisions of such ordinance relating to the collection of any such license or penalty or the penal provisions applicable to any violation thereof, nor to affect the validity of any bond or cash deposit in lieu thereof, required to be posted, filed, or deposited pursuant to any ordinance and all rights and obligations thereunder appertaining shall continue in full force and effect.

SECTION 4
The City Clerk shall certify the adoption of this Ordinance and cause it to be published as required by law. This ordinance shall become effective thirty (30) days hereafter and after the State Building Standard Code is effective.
//
//
PASSED and ADOPTED this day of _________________ 2022.

ATTEST:
___________________________ _____________________________ City Clerk Mayor, Patrick Harper

APPROVED AS TO FORM:

HARPER & BURNS LLP
___________________________
Attorneys for the City

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

FOUNTAIN VALLEY SETTING FORTH EXPRESS

FINDINGS WITH RESPECT TO LOCAL CONDITIONS

WITHIN THE CITY OF FOUNTAIN VALLEY WHICH MAKE
CERTAIN MODIFICATIONS AND CHANGES TO THE 2022

CALIFORNIA FIRE CODE REASONABLY NECESSARY

FOR PRESERVING FIRE AND LIFE SAFETY IN THE CITY

OF FOUNTAIN VALLEY
WHEREAS, pursuant to Health and Safety Code section 17922, the California Building Standards Commission is charged with approving and publishing the California Building Standards Code under Title 24 of the California Code of Regulations; WHEREAS, pursuant to Health and Safety Code section 17958, cities are required to adopt the most recent version of the State Building Standards Code, which includes the California Fire Code;
WHEREAS, on July 1, 2022, the 2022 Edition of the California Fire Code was published;
WHEREAS, pursuant to Health and Safety Code section 18941.5, the City is mandated to enforce the 2022 edition of the California Fire Code starting January 1, 2023; WHEREAS, pursuant to Health and Safety Code section 17958.5, cities are allowed to make modifications or changes to the California Building Standards Code, including the Fire Code, which are reasonably necessary because of local topographical, climatic, and geographical conditions;
WHEREAS, pursuant to Health and Safety Code section 17958.7, the City Council, before making any modifications or changes to the 2022 California Fire Code, must make express findings that such changes are reasonably necessary due to local conditions of the City of Fountain Valley and the City Council desires to hereby make such express findings; and
WHEREAS, the Fire Department has recommended that changes and modifications be made to the 2022 California Fire Code and have advised that certain said changes and modifications to the 2022 California Fire Code are reasonably necessary due to local conditions in the City of Fountain Valley.

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

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Section 1: Amendments related to fire and life safety contained in Sections 111.1, 307.6, 308.1.6.3, 407.5, 501.1, 510.1, 903.2, 5001.5.2, 5003.1.1.1, 5601.1.3, 5701.1.1, 5809.1, 1205.2, and Appendix B105.1 of the 2022 Edition of California Fire Code (“Fire Code”) as recommended by the Fire Department are hereby found to be reasonably necessary due to the following local conditions:

A. Climatic Conditions

1. Hot, dry Santa Ana winds are common to all areas within the City of Fountain Valley and Orange County in general. These winds, which can cause small fires to spread quickly, are a contributing factor to the high fire danger in the area and create the need for an increased level of fire protection. This added protection will supplement normal fire department response available and provide immediate protection for life and safety of multiple occupants during fire occurrences.

2. Orange County and the City of Fountain Valley are located in a semi-arid Mediterranean-type climate which predisposes all fuels, including wood shingles, to rapid ignition and spread of fire. Therefore, there exists a need for additional fire protection measures.

B. Geologic Conditions

1. Orange County and the City of Fountain Valley are located in a highly active seismic area (Zone D and E). There are earthquake faults that run along both the northeastern and southwestern boundaries of Orange County. The NewportInglewood Fault Zone (NIFZ) which runs through Orange County was the source of the destructive 1933 Long Beach earthquake (6.3 magnitude, hypocenter off Newport Beach coast), which took 120 lives, with areas damaged from Laguna Beach to Marina del Rey and inland to Whittier, and poses one of the greatest hazards to lives and property in the nation. Regional planning for reoccurrence is recommended by the State of California, Department of Conservation. There was also an earthquake in December 1989, with the epicenter located near the City of Irvine. The fault on which this quake occurred was unknown prior to this activity.

On October 17, 1989, the Santa Cruz earthquake resulted in only one major San Francisco fire in the Marina district, but when combined with the 34 other fires and over 500 responses, the department was taxed to its full capabilities. The Marina fire was difficult to contain because the mains supplying water to the district burst during the earthquake. If more fires had been ignited by the earthquake, it would have been difficult for the fire department to contain them. Experts predict a major earthquake in our area within the next 50 years. This situation creates the need for both additional fire protection measures and automatic on-site fire protection for building occupants since a multitude of fires may result from the breakage of gas and electric lines as a result of an earthquake. As noted in “Planning Scenario on a Major Earthquake on the Newport-Inglewood Fault Zone, 1988, State Department of Conservation,” page 59, “unfortunately, barely meeting the minimum earthquake standards of building codes places a building on the verge

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of being legally unsafe.”

2. Traffic and circulation congestion presently existing in the City of Fountain Valley often places fire department response time to fire occurrences at risk. This condition will be exacerbated by any major disaster, including any earthquake wherein damage to the highway system will occur. This condition makes the need for additional on-site protection for property occupants necessary.

3. The City of Fountain Valley is located in an area subject to climatic conditions of high winds and low humidity. This combination of events creates an environment that is conducive to rapidly spreading fires. Control of such fires requires rapid response. Obstacles generated by a strong wind, such as fallen trees, streetlights, and utility poles greatly impact the response time to reach an incident scene.

4. The City of Fountain Valley is located in the middle of the seismically active area identified as Seismic Zone 4. The viability of the public water system would be questionable at best after a major seismic event. This would leave tall buildings vulnerable to uncontrolled fires due to a lack of available water and an inability to pump sufficient quantities of any available water to floors above the 55-foot level.

A severe seismic event has the potential to negatively impact any rescue or fire suppression activities because it is likely to create obstacles similar to those indicated under the high wind section above. With the probability of strong aftershocks there exists a need to provide increased protection for anyone on upper floors.

5. The City of Fountain Valley is located, at its southernmost part, approximately six miles from the ocean. The city's typical groundwater level is at ten feet with the southernmost part of the city at levels as shallow as six to eight feet. This condition makes the City more prone to subsidence issues than most inland communities.

Additional amendments have been made to the Fire Code on the recommendation of the City of Fountain Valley Fire Department, and such amendments are hereby found to be either administrative or procedural in nature or concern themselves with subjects not covered in the Fire Code. The changes made include provisions making the Fire Code compatible with other codes enforced by the City.

Section 2: These modifications and amendments to the Fire Code are found reasonably necessary based on the climatic and/or geographic conditions cited in Section 1 of this Resolution and are listed as follows:

CODE

SECTION
TITLE (Clarification) FINDINGS
111.1 Board of Appeals Administrative
307.6 Fire Pits, Fire Rings, & Outdoor Fireplaces Administrative; A1; A2 308.1.6.3 Sky lanterns A1; A2; B3

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The aforementioned amendments have been incorporated in detail in Ordinance No. _.

Section 3: The Fire Department shall file copies of Resolution No. ____ and Ordinance No. ____ with the California Building Standards Commission as required by Health and Safety Code Section 17958.7.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting on this ________day of ______________, 2022.

ATTEST:
__________________________ __________________________
Rick Miller, City Clerk Patrick Harper, Mayor
APPROVED AS TO FORM:

Harper & Burns LLP
__________________________
Alexandra Halfman
Attorneys for the City
407.5 Hazardous material inventory statement A1; A2; B1 501.1 Fire Service features Administrative; B1; B2;
B3; B4
510.1 Emergency responder radio coverage Administrative; B1; B2; B3; B4
903.2 Where required (Sprinklers) A1; A2; B1; B2; B3; B4 5001.5.2 Hazardous materials inventory statement Administrative 5003.1.1.1 Extremely hazardous substances A1; A2; B3
5601.1.3 Fireworks Administrative; A1; A2;
B3
5701.1.1 On-Demand Mobile Fueling Administrative
5809.1 Scope Administrative
B105.1 Scope Administrative; A1; A2;
B3; B4