Fountain Valley City Council
September 19, 2023

his/her/its obligations hereunder
IN WITNESS, WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year first above written.

CITY OF FOUNTAIN VALLEY CONSULTANT
Kim Constantine, Mayor Signature
ATTEST: Typed Name
Title
Rick Miller, City Clerk
Approved as to Form:

HARPER & BURNS LLP
______________________
Attorneys for the City
Corporate seal (or attach Notary
acknowledgment)

Exhibit “A”
Scope of Services and Payment Terms

City of Fountain Valley
BACKFLOW TESTER RFQuote 22-007 (22-007), bidding on 08/25/2022 4:00 PM (PDT)

Printed 07/19/2023
PlanetBids, Inc.

City of Fountain Valley
BACKFLOW TESTER RFQuote 22-007 (22-007), bidding on 08/25/2022 4:00 PM (PDT)

Printed 07/19/2023
PlanetBids, Inc.

City of Fountain Valley
BACKFLOW TESTER RFQuote 22-007 (22-007), bidding on 08/25/2022 4:00 PM (PDT)

Printed 07/19/2023
PlanetBids, Inc.

City of Fountain Valley
BACKFLOW TESTER RFQuote 22-007 (22-007), bidding on 08/25/2022 4:00 PM (PDT)

Printed 07/19/2023
PlanetBids, Inc.

City of Fountain Valley
BACKFLOW TESTER RFQuote 22-007 (22-007), bidding on 08/25/2022 4:00 PM (PDT)

Printed 07/19/2023
PlanetBids, Inc.

Exhibit “B”
Insurance Specifications

EXHIBIT “B”

INSURANCE SPECIFICATIONS
Without limiting CONSULTANT’s indemnification of CITY, and prior to performing any work under this AGREEMENT or receiving any compensation, CONSULTANT shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and in a form, that is satisfactory to CITY.

General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount, not less than $1,000,000.00 dollars per occurrence, $2,000,000.00 dollars general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability.

Check if Applicable ☒ Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of CONSULTANT arising out of or about the work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000.00 dollars combined single limit for each accident.

Check if Applicable ☒ Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $ 1,000,000.00 dollars). CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees, and volunteers.

Check if Applicable ☐ Umbrella or excess liability insurance. CONSULTANT shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than $4,000,000.00 dollars that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms andconditions:
• A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
• Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primarypolicies;
• Policies shall “follow form” to the underlying primary policies; and • Insureds under primary policies shall also be insureds under the umbrella or excess policies.

Check if Applicable ☐ Professional liability (errors & omissions) insurance.

CONSULTANT shall maintain professional liability insurance that covers the services to be performed about this AGREEMENT, in the minimum amount of $1,000,000.00 dollars per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this AGREEMENT.

Check if Applicable ☐ Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on CONSULTANT’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $1,000,000.00 dollars per claim and in the aggregate. All activities contemplated in this AGREEMENT shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites. Products/completed operations coverage shall extend a minimum of three years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.

Check if Applicable ☐ Explosion, collapse, underground insurance. CONSULTANT shall furnish a copy of a public liability and property damage insurance policy with “XCU” or equivalent coverage in an amount not less than $1,000,000.00 dollars per person and $2,000,000.00 dollars per occurrence for personal injury. The limit of property damage liability shall be not less than $1,000,000.00 dollars for each occurrence as payment for damages to property which may result from or be caused by such public display of fireworks and arising from any acts of the CONSULTANT, its agent, employees, or subcontractors presenting such public display. CITY, its officers, agents, and employees shall be additional insureds under the policy. CONSULTANT shall not cancel the insurance coverage without fifteen (15) days prior written notice to the State Fire Marshal.

Proof of insurance. CONSULTANT shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsement must be approved by CITY prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract.

CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. CONSULTANT shall procure and maintain for the duration of the

AGREEMENT insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of this AGREEMENT by CONSULTANT, his/her/its agents, representatives, employees, or subconsultants. If this AGREEMENT involves construction, CONSULTANT must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT’s payments. In the alternative, CITY may cancel thisAGREEMENT.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by CITY. Notwithstanding the foregoing, XCU insurance shall have a rating of at leastB-VI.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of CITY to inform CONSULTANT of noncompliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.

Specifications not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits, or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.

Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, and agents shall be additional insureds under such policies. This provision shall also apply to any excess liability policies. Coverage available to the additional insured shall be primary and noncontributory.

Agency’s right to revise specifications. CITY reserves the right at any time during the term of the AGREEMENT to change the amounts and types of insurance required by giving CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to CONSULTANT, CITY and CONSULTANT may renegotiate CONSULTANT’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved byCITY.

Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’s performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: September 19, 2023 Members of the City Council
SUBJECT: Adopt a Resolution Authorizing the City Manager to Approve Information Technology Software, Hardware, and Professional Service Purchases for Vendors with Multiple Contracts that Cumulatively Exceed Fifty Thousand Dollars and to Issue Change Orders of up to $50,000 or 20-Percent of the Original Contract Amount, Whichever is Greater.

Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☐ Attract and retain quality staff through best practices and trends ☒ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable
EXECUTIVE SUMMARY:

Adopt a Resolution that specifies/clarifies that the City Manager can award multiple IT Vendor contracts of $50,000 or less to the same vendor notwithstanding that the cumulative value of the contracts exceeds $50,000 and authorize the City Manager to issue contract amendments to IT Vendor contracts of $50,000, or 20-percent of the original contract amount, whichever is greater.

DISCUSSION:

Fountain Valley Municipal Code (“F.V.M.C.”) section 2.36.110, subdvs. (a), authorizes the City Manager to award and sign contracts on behalf of the City when the total amount of the City’s expenditure on the contract is $50,000 or less.

The City frequently enters into multiple contracts with the same Information Technology vendor for software, hardware, and professional services where each individual contract is less than $50,000, however, the cumulative amount of the contracts with the same vendor exceeds $50,000, in some cases, such as in issuing various software licenses, there are a multitude of contracts that would, under a conservative read of Section 2.36.110 each require

Resolution for IT Vendor Purchases
September 19, 2023

Council approval, notwithstanding that each of the contracts required only a minor monetary expenditure.

Therefore, staff asks the City Council to authorize the City Manager to award and sign contracts with the same Information Technology vendor for software, hardware, and professional services when each contract is $50,000 or less but, due to multiple purchases from the same vendor, the cumulative amount of the contracts exceeds $50,000. Staff also asks Council to allow the City Manager to award and sign amendments to contracts for Information Technology vendors for software, hardware, and professional services where the amendment is $50,000 or less or does not exceed 20-percent of the original contract amount, whichever is greater.

The IT Director will provide a quarterly purchase report to the City Council for the contracts and purchases authorized by the attached Resolution, if approved.

FISCAL REVIEW:

There is no fiscal impact related to this item. The attached resolution modifies the contract signing authority given to the City Manager for Information Technology Software, Hardware, and Professional Services. Other than the modifications noted above, all aspects of the City’s purchasing policy remain in place, including all informal and formal bidding procedures.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney for the City reviewed the Resolution and concurs with the recommended action.

ALTERNATIVES:

Alternative No. 1:

Alternative No. 2:

Adopt the proposed Resolution authorizing the City Manager to approve information technology software, hardware, and
professional service purchases for vendors with multiple contracts that cumulatively exceed fifty thousand dollars and to issue change orders of up to $50,000 or 20-percent of the original contract amount, whichever is greater.

Do not adopt the proposed Resolution

Resolution for IT Vendor Purchases
September 19, 2023

RECOMMENDATION:

Staff is requesting City Council approval of Alternative No. 1: Adopt the proposed Resolution authorizing the City Manager to approve information technology software, hardware, and professional service purchases for vendors with multiple contracts that cumulatively exceed fifty thousand dollars and to issue change orders of up to $50,000 or 20-percent of the original contract amount, whichever is greater.

Prepared by: Scott Kim, IT Director
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

1. Resolution

RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY AUTHORIZING THE CITY MANAGER TO APPROVE INFORMATION

TECHNOLOGY SOFTWARE, HARDWARE, AND PROFESSIONAL SERVICE

PURCHASES FOR VENDORS WITH MULTIPLE CONTRACTS THAT

CUMULATIVELY EXCEED FIFTY THOUSAND DOLLARS AND TO ISSUE CHANGE ORDERS OF UP TO $50,000 OR 20-PERCENT OF THE ORIGINAL

CONTRACT AMOUNT, WHICHEVER IS GREATER
WHEREAS, Fountain Valley Municipal Code (“F.V.M.C.”) section 2.36.110, subdvs. (a), authorizes the City Manager to award and sign contracts on behalf of the City of Fountain Valley when the total amount of the City’s expenditure on the contract is $50,000 or less; WHEREAS, the City frequently enters into multiple contracts with the same Information Technology vendor for software, hardware, and professional services where each individual contract is less than $50,000, however, the cumulative amount of the contracts with the same vendor exceeds $50,000;
WHEREAS, while the City Manager is authorized to award and sign contracts of $50,000 or less, pursuant to F.V.M.C. 2.36.110, subdvs. (c), the City Council desires to specifically clarify / authorize the City Manager to award and sign contracts with the same Information Technology vendor for software, hardware, and professional services when each contract is $50,000 or less but, due to multiple purchases from the same vendor, the cumulative amount of the contracts exceeds $50,000; and
WHEREAS, the City Council also desires to authorize the City Manager to award and sign amendments to contracts for Information Technology vendors for software, hardware, and professional services where the amendment is $50,000 or less or does not exceed 20-percent of the original contract amount, whichever is greater.

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

1. The City Manager is authorized to award and sign contracts for Information Technology vendors for software, hardware, and professional services when, due to multiple purchases from the same vendor, the cumulative amount of the contracts with one vendor exceeds $50,000.

2. The IT Director will provide a quarterly purchase report to the City Council for the contracts and purchases authorized by this resolution.

3. All original contracts for Information Technology vendors for software, hardware, and professional services that exceed $50,000 still need City Council authorization.

4. The City Manager is also authorized to award and sign contract amendments for Information Technology vendors for software, hardware, and professional services that increase the contract compensation by $50,000 or less, or twenty percent of the original contract amount, whichever is higher. Any contract amendment above these amounts will need City Council authorization.

5. Other than the exceptions provided herein, the City Manager’s authority to award and sign contracts remains unchanged.

PASSED, APRROVED AND ADOPTED this 19th day of September, 2023, by the following vote:

ATTEST:

Rick Miller, City Clerk Kim Constantine, Mayor
APPROVED AS TO FORM:

HARPER & BURNS LLP
_________________________________________
Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: September 19, 2023 Members of the City Council
SUBJECT: Public Hearing – FY 2022-23 Community Development Block Grant Consolidated Annual Performance and Evaluation Report
Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☐ Attract and retain quality staff through best practices and trends ☐ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable
EXECUTIVE SUMMARY:

Title I of the National Affordable Housing Act of 1990, as amended, requires the City of Fountain Valley (City) to prepare and submit a Consolidated Annual Performance and Evaluation Report (CAPER) to the U.S. Department of Housing and Urban Development (HUD), summarizing the annual accomplishments of the City’s Community Development Block Grant (CDBG) program, and specifying how the CDBG funding was utilized. The City has completed its CAPER in the format prescribed by HUD, which describes the programs implemented by the City in an effort to address the housing and community development goals and objectives outlined in its Consolidated Plan.

Staff is recommending that the City Council conduct a public hearing to obtain public input regarding the CAPER (Attachment 1), and, at its conclusion, approve the CAPER and authorize staff to submit the report to HUD for review and approval.

DISCUSSION:

One of the requirements for receiving CDBG funding from HUD is that recipients prepare a Consolidated Plan to govern the use of all federal funds. The Consolidated Plan is a five-year planning document that coordinates all elements of community development including housing, neighborhood improvement, economic development, and human services into a single plan, and serves to provide a unified vision of a community and its goals regarding the use of CDBG funding to assist low income members of the community. The current City of

Public Hearing – FY 2022-23 CDBG CAPER
September 19, 2023

Fountain Valley five-year Consolidated Plan covers the period of July 1, 2020 to June 30, 2025 and is titled the FY 2020-24 Consolidated Plan.

At the end of each fiscal year, HUD grantees are required to submit a report, in the format prescribed by HUD, which reviews and reports the programs implemented by the City that address the community development needs and priorities outlined in its Consolidated Plan.

This annual report is known as the CAPER. The City’s FY 2022-23 CAPER reports on Housing and Community Development programs and activities implemented by the City of Fountain Valley during FY 2022-23 and covers the third year of the FY 2020-24 Consolidated Plan. The CAPER also includes the accomplishments of activities funded using CDBG-CV funds provided to the City through the passage of the CARES Act that must specifically be used to fund programs that prevent, prepare for, and/or respond to COVID-19.

The FY 2020-24 Consolidated Plan outlines the following priorities:

1. Improve and preserve existing residential neighborhoods by implementing home, infrastructure, and public facility improvements, and code enforcement programs.

2. Address the needs of persons with special needs through the provision of financial assistance to public service agencies, and the removal of architectural barriers to the physically challenged.

3. Provide affordable housing opportunities for renter households through an on-going partnership with the Orange County Housing Authority.

4. Administer available federal, state, and locally funded housing and community development grant programs, including providing fair housing services, and ensuring compliance with applicable state and federal regulations.

Highlights of the City’s accomplishments in implementing its FY 2022-23 housing and community development grant programs include:

1. The Home Improvement Program completed 32 projects at a total cost of $282,298 in CDBG funds. This included 19 rehabilitation grants, two (2) rebates, one (1) loan, 10 lead based paint grants, and program administration costs. Eight (8) of the grants began and were counted in the prior fiscal year but paid out of FY 2022-23.

2. 146 properties located within the City’s low-income CDBG target areas had code violations identified and abated at a cost of $63,442 in CDBG funds.

3. Five (5) non-profit organizations funded by the Public Service Agency (PSA) Grant Program provided services to 509 persons/households. The six (6) programs included childcare scholarships, youth diversion services, congregate and home delivered meals for elderly, case management for developmentally disabled adults (ended mid-year), and emergency and transitional shelter and services for domestic violence victims. $47,748 in CDBG funds were used for these services.

4. The Fair Housing Council of Orange County assisted 126 unduplicated households and

Public Hearing – FY 2022-23 CDBG CAPER
September 19, 2023

resolved 392 issues between renters and landlords. Issues included security deposits, discrimination, substandard conditions, harassment, unlawful detainers, etc. All issues were resolved in-house at a cost of $5,000 in CDBG funds.

5. The Senior Social Services Program in Response to COVID assisted 289 persons during the third year of the program. $28,584 of CDBG-CV funding was expended for this activity.

6. Orange County Housing Authority (OCHA) administers the federally funded Housing Choice Vouchers (Section 8) for the City. 431 low-income renter households in Fountain Valley currently have HUD vouchers. This program is provided at no cost to the City.

A public meeting of the Housing and Community Development Advisory Board (HCDAB) was conducted on September 6, 2023, to review the draft FY 2022-23 CAPER. The HCDAB unanimously voted to forward a recommendation to City Council to approve the CAPER and submit the report to HUD prior to the September 30, 2023 deadline. No public comments were received.

FISCAL REVIEW:

There is no fiscal impact related to this item; however, submitting the CAPER is a regulatory requirement to receive CDBG funding from HUD. Failure to submit a CAPER would affect future CDBG funding.

PUBLIC NOTIFICATION:

A public notice was published in the Fountain Valley View on Thursday, August 24, 2023 announcing the public comment period and public hearing for the CAPER. The public comment period began on September 1, 2023, and ended on September 15, 2023. The public notice also advised of the public hearing before the City Council on September 19, 2023.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

This does not require the Attorney for the City review or approval.

ALTERNATIVES:

Alternative No. 1: Conduct a public hearing to consider the City of Fountain Valley FY 2022- 23 CAPER, and authorize staff to submit the final CAPER to HUD for approval by the September 30, 2023 deadline.

Alternative No. 2: Conduct a public hearing to consider the City of Fountain Valley FY 2022- 23 CAPER, make any needed amendments to the report, and authorize staff to submit the final CAPER to HUD for approval by the September 30, 2023 deadline.

Public Hearing – FY 2022-23 CDBG CAPER
September 19, 2023

RECOMMENDATION:

Staff is requesting City Council approval of Alternative No. 1 - Conduct a public hearing to consider the City of Fountain Valley FY 2022-23 CAPER, and authorize staff to submit the final CAPER to HUD for approval by the September 30, 2023 deadline.

Prepared by: Ashlyn Newman, Housing Coordinator
Reviewed by: Omar Dadabhoy, Community Development Director Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

1. FY 2022-23 CAPER

CITY OF

FOUNTAIN VALLEY
FY 2022-2023

CONSOLIDATED ANNUAL

PERFORMANCE EVALUATION
REPORT
(CAPER)

2 CITY OF FOUNTAIN VALLEY

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER)

CITY COUNCIL
Kim Constantine, Mayor
Glenn Grandis, Mayor Pro Tempore Ted Bui, Council Member Jim Cuneen, Council Member Patrick Harper, Council Member Maggie Le, City Manager

HOUSING AND COMMUNITY DEVELOPMENT ADVISORY BOARD
Michael White, Chair
Cindy Cao, Vice Chair Ray Pasos, Board Member
Prem Balani, Board Member Bryan Noble, Board Member

HOUSING AND COMMUNITY DEVELOPMENT DIVISION
Omar Dadabhoy, Community Development Director
Ashlyn Newman, Housing Coordinator
Nikesha Hazel, Housing Technician

3 EXECUTIVE SUMMARY
The City of Fountain Valley (City) is an entitlement jurisdiction, receiving an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). As a recipient of CDBG funds, the City is required to prepare a fiveyear strategic plan that identifies housing and community needs, prioritizes these needs, identifies resources to address the needs, and establishes annual goals and objectives to meet the identified needs. This five-year plan is known as the Consolidated Plan. The purpose of the Consolidated Plan is to outline a strategy for the City to follow in using CDBG funding to achieve the goals of the CDBG program, “to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities principally for low- and moderate-income persons.” The Consolidated Plan is created as a work plan that is divided into five separate planning and reporting cycles. Since factors such as decreases in funding are not usually known from year to year, the five-year goals must remain fluid and are adjusted on an annual basis.

Each year, the City is required to provide the public and HUD with an assessment of its accomplishments toward meeting the priority goals outlined in the Consolidated Plan. This annual assessment is known as the Consolidated Annual Performance and Evaluation Report (CAPER). This document provides a review and evaluation of the City of Fountain Valley’s progress toward meeting the 2022-23 annual goals and outcomes as outlined in the 2022-23 Action Plan, as well as the larger five-year goals of the 2020-24 Consolidated Plan. This report will summarize the City’s accomplishments for the time period July 1, 2022, to June 30, 2023.

In addition to the annual allocation the City receives from HUD each year, a separate allocation was provided through the passage of the CARES Act in 2020 that authorized HUD to distribute additional funding to entitlement communities to be used to fund programs that prevent, prepare for, and respond to coronavirus (COVID-19). These funds are designated as CDBG-CV funds. Thisfiscal year, the City used the CDBG-CV allocation to fund year three of the Senior Social Services Program in Response to COVID-19.

This document will provide the narratives and budget information for activities undertaken during 2022-23, as well as a summary of the progress towards achieving the goals of the Consolidated Plan.

The CAPER contains the following basic elements:
• HUD receives necessary information for the Department to meet its regulatory requirement to assess the City of Fountain Valley’s ability to carry out the CDBG Program in compliance with all applicable rules and regulations;

4 • Required information for HUD’s Annual Report to the U.S. Congress; • The document outlines programs, projects and activities that the City of Fountain Valley has undertaken to address priority needs and local objectives during Fiscal Year 2022-23;
• A detailed overview of all activities carried out using funds under HUD’s CDBG program and CDBG-CV program;
• Planned activities utilizing other funds including Fountain Valley Housing Authority funds; and
• Provides the City of Fountain Valley an opportunity to describe and disseminate to its citizens the many successes of the program in meeting the goals stated in the 2020-24 Consolidated Plan.

5 CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)
This CAPER has been prepared to provide information to the residents of the City of Fountain Valley, interested persons, and HUD regarding the City’s use of federal grant funds to meet the priority needs identified in the City’s 2020-24 Consolidated Plan. The CAPER focuses on annual goals and accomplishments for the period of July 1, 2022, through June 30, 2023. This reporting period covers the third year of the 2020-24 Consolidated Plan cycle. (Note: Not all five-year goals were addressed during the 2022-23 report period).

During FY 2022-23, the City of Fountain Valley made good progress in working toward meeting the goals outlined in the 2020-24 Consolidated Plan. The impact of COVID-19 on the CDBG program lessened this year however many modifications that were made to existing programs in order to comply with COVID-19 protocols remain in place to prioritize community safety.

Highlights of the City’s accomplishments in implementing its FY 2022-23 Housing and Community Development Grant programs include:
• Owner Occupied Home Improvement – 21 grants, rebates, low-interest, deferred payment loans, and lead testing grants were completed for income eligible properties • Fair Housing Services - 126 individuals assisted
• Code Enforcement – 146 violations abated in CDBG eligible areas • Emergency Shelter and Services for Battered Women – 73 individuals/families assisted • Disabled Adult Services –11 individuals assisted
• Senior Services – 623 individuals assisted, 289 of those clients were assisted by the CDBG-CV funded Senior Social Services Program in Response to COVID-19 • Youth Services – 91 youth and their families assisted

6 Comparison of the proposed versus actual outcomes for each outcome measure submitted with the Consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520 (g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program goals.

Table 1- Accomplishments – Program Year & Strategic Plan to Date Goal Category Source/
Amount
Indicator Unit of
Measure
Expected
5 Yr.

Strategic
Plan
Actual 5
Yr.

Strategic
Plan
5 Yr.

Percent
Complete
Expected
FY 22-23
Program
Year
Actual
FY 22-23
Program
Year
FY 22-23
Percent
Complete
Administration Administration CDBG:
$65,807
Other Other 5 3 60% 1 1 100%
Affordable
Housing
Development
Affordable
Housing
CDBG:
$0
Rental Units
Constructed
Household
Housing
Unit
50 50 100% 0 0 N/A
Code
Enforcement
Affordable
Housing
Code
Enforcement
CDBG:
$82,000
Housing Code
Enforcement/
Foreclosed
Property Care
Household
Housing
Unit
1250 733 59% 150 146 97%
Economic
Development
Non-Housing
Community
Development
Economic
Development
CDBG:
$0
CDBG-CV:
$171,000
Jobs created/
retained
Jobs 45 42 93% 0 0 N/A

7 Goal Category Source/
Amount
Indicator Unit of
Measure
Expected
5 Yr.

Strategic
Plan
Actual
5 Yr.

Strategic
Plan
5 Yr.

Percent
Complete
Expected
FY 22-23
Program
Year
Actual
FY 22-
23Progra
m Year
FY 22-23
Percent
Complete
Fair Housing
Report
Fair Housing
Report not
part of
Administrative
20%
CDBG:
$0
Other Other 1 0 0 0 0 N/A
Fair Housing
Services
Fair Housing
Services
CDBG:
$5,000
Other Other 350 360 103% 60 126 210%
Homeless
Services and
Housing
Homeless
Domestic
violence
shelter and
services
CDBG:
$13,800
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
assisted
350 190 54% 55 73 133%
Housing Choice
Voucher –
Rental
Assistance
Affordable
Housing
Homeless
Rental
AssistanceOCHA
CDBG:
$0
Other Other 2100 1331 63% 440 431 98%

8 Goal Category Source/
Amount
Indicator Unit of
Measure
Expected
5 Yr.

Strategic
Plan
Actual
5 Yr.

Strategic
Plan
5Yr.

Percent
Complete
Expected
FY 22-23
Program
Year
Actual
FY 22-23
Program
Year
FY 22-23
Percent
Complete
Lead Based
Paint Hazard
Grant
Affordable
Housing
Lead Based
Paint Hazards
Testing
CDBG:
$13,170
Other Other 75 20 27% 15 10 66%
Neighborhood
Revitalization
Affordable
Housing
CDBG:
$256,791
Homeowner
Housing
Rehabilitation
Household
Housing
Unit
75 46 61% 15 11 73%
Services for
Disabled
Non-Homeless
Special Needs
Disable Adults
CDBG:
$6,500
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
50 32 64% 10 11 110%
Services for
Frail/Elderly
Non-Homeless
Special Needs
Services for
Elderly/Frail
Elderly
CDBG:
$15,355
CDBG-CV:
$20,547
Public service
activities other
than Low/
Moderate
Income Housing
Benefit
Persons
Assisted
775 1651 213% 351 623 177%

9 Goal Category Source/
Amount
Indicator Unit of
Measure
Expected
5 Yr.

Strategic
Plan
Actual 5
Yr.

Strategic
Plan
5 Yr.

Percent
Complete
Expected
FY 22-23
Program
Year
Actual
FY 22-23
Program
Year
FY 22-23
Percent
Complete
Youth Services Non-Homeless
Special Needs
Youth Services
CDBG:
$15,500
Public service
activities other
than
Low/Moderate
Income Housing
Benefit
Persons
Assisted
475 268 56% 95 91 96%
Table 1- Accomplishments – Program Year & Strategic Plan to Date

10 Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

The following priorities are outlined in the five–year Consolidated Plan:
• Improve and preserve existing residential neighborhoods by implementing home, infrastructure, and public facility improvements, and code enforcement programs. • Address the needs of persons with special needs through the provision of financial assistance to PSAs, and the removal of architectural barriers to the physically challenged. • Provide affordable housing opportunities for renter households through an on-going partnership with the Orange County Housing Authority.
• Administer available federal, state and locally funded housing and community development grant programs, including providing fair housing services and ensuring compliance with applicable state and federal regulations.

Funding priorities for FY 2022-23 were established based on the extent of the need, the availability of other funding sources to address those needs, and whether a similar program was offered by other entities. The City has determined the most effective use of funds is to fund PSAs at the maximum 15% cap and to utilize the majority of remaining CDBG funds toward offering rehabilitation grants, rebates and loans to income qualified residents to provide decent and sanitary housing and to provide code enforcement in CDBG eligible areas to ensure a suitable living environment.

The allocation of CDBG-CV funding through the CARES Act has allowed the City to provide additional assistance for public service agencies that provide activities that prevent, prepare for, or respond to coronavirus. After using most of the initial funding to provide two small business grants to business owners effected by COVID-19, the City has earmarked the remaining funds from the CDBG-CV allocation to fund the third and fourth year of the Senior Social Services Program in Response to COVID-19 to provide support to seniors who continue to be affected by the virus.

The City of Fountain Valley provides grants to a diverse group of PSAs who offer a variety of programs to assist low- and moderate-income households with services that they may not otherwise be able to afford. Services provided through the grant program included childcare scholarships, youth diversion services, congregate and home delivered meals for elderly, case management for developmentally disabled adults, senior social services programs, and emergency and transitional shelter and educational services for domestic violence victims. During the reporting period, 798 low- and moderate-income residents received services from the PSA’s participating in the City’s PSA grant program. This is 52% higher than the projected number of clients served for the year primarily due to the increased number of clients utilizing the Meals on Wheels programs, the Senior Social Services Program in Response to COVID-19, and the domestic violence shelter. The youth diversion program had a lower number of clients served than anticipated. This seems to be a resulting fallout of COVID-19 restrictions that

11 required or encouraged schooling from home. The juvenile diversion program received less referrals from schools however as school schedules return to normality, and children are becoming accustomed to attending school in person, they are seeing the number of referrals increase. The Senior Social Services in Response to COVID-19, funded with CDBG-CV funds, spent 94% of their allocation while helping 47% more clients than initially projected. The total expenditure for PSA services was $76,332.05. $28,584.00 of that amount was for the Senior Social Services in Response to COVID-19 Program funded by CDBG-CV, which, per HUD regulations, may be spent outside the 15% cap on annual CDBG funding.

Elwyn California, a longtime city PSA Grant Program participant who received funding for case management for disabled adults, was forced to discontinue their program halfway through the grant period at the end of 2022. The remaining grant allocation was transferred to the Meals on Wheels Congregate program to assist with their escalating food costs.

The City of Fountain Valley administered a number of programs to assist low- and moderate-income households with affordable housing concerns. These programs all met or had higher projected outcomes possibly due to the community becoming more comfortable with COVID-19 concerns. The total expenditures for Housing Programs was $345,757.73 and included the following programs:
• Neighborhood Preservation Program - This program completed 22 single-family home and mobile home grants, loans and rebates. Of those, 11 began and were counted in the prior year however completed in FY 22-23. The expenditures for this activity including program administration totaled $269,396.03.
• Lead Based Paint Hazard Grant Program - This program grants funds necessary for the testing and remediation of lead based paint hazards in the home. In 2022-23, 10 homes were tested for lead based paint hazards with one home requiring lead abatement. The expenditure for the activity was $12,920.00.
• Code Enforcement Program - This program helps preserve the housing stock by addressing municipal code violations in the designated low-mod census tracts that are showing signs of deterioration. In 2022-23, Code Enforcement abated 146 municipal code violation cases. The amount expended on this activity was $63,441.70.

CDBG regulations allows no more than 20% of the total annual grant to go towards Administration of the CDBG entitlement grant. This amount includes the cost of the HUD requirement to provide fair housing services to city residents. For the fiscal year, a total of $56,927.14 was expended on administrative costs with an additional $5,000 spent to provide fair housing services to city residents through an agreement with Fair Housing Council of Orange County (FHCOC). The total cost of Administration of the FY 2022-23 entitlement allocation was $61,927.14.

FHCOC provided fair housing services that includes community education regarding issues such as fair lending practices, tenants’ rights, and housing discrimination. The FHCOC also investigates cases of home mortgage discrimination and other fair lending practices. Since the pandemic, FHCOC has

12 primarily hosted virtual workshops regarding fair housing, for both landlords and tenants. They continue to be available via phone and email to assist residents as well as in-office appointments. FHCOC prepares an annual update to the Regional Analysis of Fair Housing Impediments (AI) report for the City of Fountain Valley, which can be reviewed in the attachments to this report. During FY 2022-23, FHCOC assisted 126 households with issues and questions regarding housing matters which was 68% higher than projected for the fiscal year. Further details can be reviewed in FHCOC’s Analysis of Impediments to Fair Housing for FY 22-23 in the appendices of this report.

13 CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
CDBG
White 437
Black or African American 9
Asian 343
American Indian or American Native 2
Native Hawaiian or Other Pacific Islander 7
Total 798
Hispanic 74
Not Hispanic 724
Table 1 – Table of assistance to racial and ethnic populations by source of funds Narrative
Based on the data from Table 2, the racial breakdown of households assisted with CDBG funding is:
• White – 55%
• Black or African American - .8%
• Asian – 43%
• American Indian or American Native – 0.2%
• Native Hawaiian or Other Pacific Islander - .8%
Of the 797 families, 9% identified as Hispanic.

The 2022 United States Census Bureau estimates from July 2022 approximates the following racial breakdown for the City of Fountain Valley:
• White – 46.7 %
• Black or African American - 0.4%
• Asian – 37.3%
• American Indian/Native Alaskan - .3%
• Other- 15.3%
• Identify as Hispanic - 16.7%
According to the Consolidated Plan, no racial or ethnic group is disproportionately experiencing HUD

14 identified “housing problems.” For this report period, it appears that all racial groups and ethnicities are using services in an amount consistent with the percentages of population within the city.

15 CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG public - federal $500,000.00 $425,625.29
Other / CDBG-CV public - federal $30,547.00 $28,584.00
CDBG Program Income public - federal $29,807.63 $29,807.63 TOTAL EXPENDITURES $484,016.92
Table 2 - Resources Made Available
Narrative
The FY 2022-23 Action Plan estimated a budget of $530,547 to fund CDBG activities for this reporting period. This amount included the current year allocation, additional funds from prior year’s allocations that had not yet been spent, and CDBG-CV funds. This year, one rehabilitation loan was paid off in the amount of $29,807.63 (original loan + interest). The funds were receipted as program income, and expended prior to spending the regular CGBG allocation, in compliance with HUD regulations.

Identify the geographic distribution and location of investments Target Area Planned
Percentage of
Allocation
Actual Percentage
of Allocation**
Narrative
Description

CDBG ELIGIBLE EXCEPTION
CRITERIA 0 0 N/A
CDBG/Code Enforcement Eligible
Exception Criteria 25 13 Code Enforcement
City-Wide 75 87 All other activities
Table 3 – Identify the geographic distribution and location of investments Narrative
As reflected in Table 3, the majority of CDBG funds were distributed city-wide. Both the PSA program and the Neighborhood Home Improvement Program services are not limited to the CDBG eligible areas. This is because areas of the City outside of the CDBG target areas can benefit from federally assisted programs provided that they meet the program’s eligibility criteria. Eligibility is established by household income and household size. City staff collects income and household data when determining income eligibility for the Neighborhood Improvement Program and PSA’s collect the same data from their clients. The majority of the

16 City’s PSA grant recipients serve communities that are presumed low-income by HUD definitions, so clients do not need to provide proof of income. Program administration is also expended on a citywide basis.

Code enforcement numbers in CDBG eligible areas are remaining consistent. Staff is finding that many cases are becoming more complex and are taking more staff time to bring properties into compliance. A map of CDBG-eligible areas is provided in the attachments at the end of the report.

SHORT TERM

RENTALS

SOBER LIVING
HOMES

NUISANCE

PROPERTIES ILLEGAL HOME

BUSINESSES

UNPERMITTED

CONSTRUCTION

STREET VENDOR

ENFORCEMENT

17 Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

The CDBG Program is leveraged by various funding sources. The highest ratio of leveraging CDBG funds is the PSA Program. Many of the non-profit organizations receive funds from a variety of federal, state, local and private sources. The CDBG funds they receive from the city are generally a very small portion of their overall funding. PSA organizations provide the greatest return for the amount of CDBG funds spent due to their ability to leverage the CDBG funds with their overall funding. This leveraging allows low-income Fountain Valley residents access to services that they may not have an opportunity to receive otherwise, at no cost. The services include programs for battered women and children, youth criminal diversion programs, youth services, and senior services.

To help offset PSA program costs for grant recipients, the City provides use of the Senior Center for the senior meal program and the senior social services program and provides office space at the Police Department for the youth criminal diversion program. This is an example of how the city used publicly owned facilities to assist in addressing the needs identified in the plan.

Examples of other leveraged funds come from the Home Improvement Program. Eligible lowincome homeowners can use their personal funds to pay for a rehabilitation project and will receive 50% of their costs back in CDBG funds, per program policy, in the form of a rebate. Code Enforcement CDBG funds are also leveraged by general funds.

The City does not participate in any programs that have matching requirements.

18 CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year
Goal
Actual
Number of Homeless households to be provided affordable housing units 0 0 Number of Non-Homeless households to be provided affordable housing units 0 0
Number of Special-Needs households to be provided affordable housing units 0 0
Total 0 0
Table 4 – Number of Households
One-Year
Goal
Actual
Number of households supported through Rental Assistance 440 431 Number of households supported through The Production of New Units 0 0 Number of households supported through Rehab of Existing Units 15 11 Number of households supported through Acquisition of Existing Units 0 0 Total 455 442
Table 5 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

The City collaborates with Orange County Housing Authority who administers the voucher assistance program for the city. This ensures that rental assistance is made available to the most disadvantaged households in the city and helps provide rental assistance to special needs populations to ensure they have affordable housing. As Table 5 shows, the amount of vouchers issued was just slightly lower than the one–year goal.

As noted on Table 5, the City reached about 75% of its annual goal for the projected number of households supported through the Rehab of Existing Units. The Home Improvement Program had several projects that started in the prior year and were finished this year that limited the number of new projects that could be started and completed within the fiscal year. The City continues to receive a good number of applicants and reviewing applications to approve qualified low-income candidates and determining the scope of work for each project, takes a significant amount of time. Staff continued to market the Home Improvement Program by posting program information and availability on the City’s

19 social media pages and website, posting flyers at the Senior Center, asking City Council members, Commissioners and Board members to disseminate information on the program, publishing articles in community newsletters, and mailing targeted letters to homes with deferred maintenance. The program is advertised in Fountain Valley Living Magazine, the local city magazine that is delivered to all city households, and has successfully generated applicants. One of the most effective means of advertising is word of mouth from satisfied participants. We have found this to be the most valuable way that qualified residents find out about the program.

Discuss how these outcomes will impact future annual action plans.

The FY 2022-23 CDBG program outcomes show that the activities funded were successful in assisting low-income households in the city. In future plans, the City will continue to focus on providing grants to a wide variety of PSAs to assist the underserved, and to offer grants, rebates and loans to low-income homeowners for rehabilitation of their homes, as the City has had measured success with these programs.

Code enforcement in eligible areas will also be utilized, as it continues to be an effective tool to address issues of deteriorated or deteriorating properties, and to ensure that all properties obtain building permits when required, to support the safety of all residents. Code enforcement also helps in the marketing of the Home Improvement Program as they provide information of the availability of funds to residents who are oftentimes unaware of the existence of the programs.

While CDBG funds can be used to assist with renovations and creation of new public facilities and capital projects in targeted neighborhoods, the city has determined that other community needs like housing and human services are a higher priority and can be more successfully addressed with the limited amount of CDBG funds that are available.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 3 N/A
Low-income 7 N/A
Moderate-income 1 N/A
Total 11 N/A
Table 7 – Number of Households Served

20 Narrative Information
City of Fountain Valley funds programs and projects through the PSA Grant Program, Neighborhood Revitalization Program, and by contracting with Fair Housing Council of Orange County to provide services to households with income levels that are 80% or less of the median County income.

Of the 21 projects funded through the City’s Neighborhood Revitalization Home Improvement Program 15% had income of less than 30% Orange County median income, 24% had incomes at between 31-50% of the Orange County median income and the remaining 46% were between 51% and 80% of the Orange County median income. 30% of the households were disabled, 48% were elderly, and 26% were female head of households. All households assisted in the Home Improvement Program were owner-occupied households as required by program policy.
431 vouchers for rental assistance were provided by OCHA in Fountain Valley. This includes regular Housing Choice Vouchers, Veterans Affairs Supportive Housing Vouchers, Non-Elderly Disabled Vouchers, Family Unification Vouchers, Family Self-Sufficient Vouchers and Port-in Vouchers from other Housing Authorities. Of this amount, 327 vouchers were for elderly households, and 53 were for disabled households. All OCHA voucher recipients qualify as low-income. (Table 6) The households assisted by the City’s Neighborhood Revitalization Program are reflected in Table 6 and Table 7. Interval House Domestic Violence Shelter assisted 73 domestic households which is almost double last year’s number of clients served. Per HUD regulations domestic violence victims in need of emergency shelter are counted in public service agency accomplishments and do not fit the definition of homeless that are accounted for in Table 4.

Outside of the CDBG program, the Fountain Valley Housing Authority provided funding for a 50-unit affordable housing apartment complex that has eight units set aside for permanent supportive housing for Veterans Affairs Supportive Housing (VASH) recipients. This new affordable housing complex, named Prado Family Homes, is available to extremely low and very low-income households and addresses “worst case needs” for low-income households in the community. The project has been fully occupied since June 2022.

The City also monitors 78 affordable for-purchase owner occupied units, 156 senior affordable apartments, and 14 affordable all-age apartments to ensure they continue to comply with affordability restrictions. The City will also begin monitoring the 50-unit Prado project for compliance in 2024.

21 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The number of persons experiencing homelessness in the City of Fountain Valley, tallied in the 2022 Point in Time (PIT) count, was 38 unsheltered and zero sheltered persons. The City continues to contract with City Net to address the need for specialized homeless outreach. City Net provides homeless housing navigation services to persons experiencing homelessness in Fountain Valley, and assists them in connecting to shelter and housing. City Net is one of the largest and most effective providers of street outreach and engagement services in southern California and has successfully provided services to many neighboring communities. City Net offers a number of programs to assist persons experiencing homelessness such as:
• Street Outreach
• Engagement Services
• Housing Navigation
• Case Management
• Transportation
• Emergency Health/Mental Health
• Services for Special Populations
• Food and Emergency Services
• Housing First
• Trauma-Informed Care
City Net’s expertise is direct client contact and currently has engagement contacts with 30 + homeless individuals in Fountain Valley educating them on services and housing options that are available to them. They have successfully transitioned several people from the street and into housing and many others into specialized services. City Net services are funded outside of the CDBG program.

The Fountain Valley Police Department continues to fund two full-time Homeless Liaison Officers (HLO) dedicated to homeless intervention and education, and work alongside City Net. City Net services and the HLO’s are funded outside of the CDBG program.

The City has also connected with Be Well OC, a public- private partnership, who are developing a coordinated system in Orange County to provide the best in mental health and substance abuse care to the community. Many persons experiencing homelessness struggle with these issues. The central coordinator for the program is the non-profit Mind OC who has recruited organizations that collaborate

22 to provide education and services regarding mental health and substance abuse that:

1. Reduce stigma

2. Prevent and Act Early

3. Close Treatment Gaps and Improve Access

4. Strengthen Crisis Response

5. Establish Community Hubs

6. Align Partners, Policies and Programs
The City continues to support the County of Orange in its Continuum of Care Program (CoC) that administers the homelessness strategy on a countywide approach. The CoC has restructured its governance so that functions are performed by either the Continuum of Care Board or the Commission to End Homelessness. They have also done extensive updating of their data initiatives to better assess the information collected to assist in implementing programs in the most efficient and cost effective manner.

Addressing the emergency shelter and transitional housing needs of homeless persons In late 2022, the City entered into a partnership with the neighboring cities of Garden Grove and Westminster, and the County of Orange, to develop a year-round navigation center titled the Central Cities Navigation Center (CCNC). The CCNC will provide an 85-bed emergency shelter with wrap around social services to individuals experiencing homelessness. The city will have 13 dedicated beds available for the unhoused in the city. A property has been purchased and the development is well underway with an anticipated opening date of spring 2024. This project is funded outside of CDBG.

23 City Net will continue to do street outreach for the city. Their programs are aligned with Housing First principals, which means they place persons experiencing homelessness into decent, safe housing, before addressing other issues like stabilizing health, reducing harmful behaviors, or increasing income. City Net believes that by using this approach, ensuring basic necessities like safe housing are taken care of first, people can focus on other pressing issues that need addressed in order to get them stabilized and back to contributing members of society.

Until the navigation center is available, City Net will continue to provide housing search and placement services for eligible clients and they have the resources to locate, and place clients in emergency and transitional housing, throughout the county. City Net and FVPD are also able to refer individuals to the Yale Navigation Center in Santa Ana that is one-half mile outside of Fountain Valley. Yale Navigation Center is a 425-bed interim housing site that provides shelter and supportive services for individuals experiencing homelessness in Orange County.

In addition to City Net’s services and FVPD efforts, the City allocated CDBG funds to Interval House through the PSA grant. Interval House offers emergency and transitional housing to domestic violence victims who would otherwise be homeless. Last year Interval House assisted 73 women with emergency shelter and support. They also provide the city with 24-hour crisis counseling and community outreach and education. In-person client services and community outreach were reduced due to COVID-19 safety protocols over the past few years but are starting to schedule more in-person educational events.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The City makes referrals to the County of Orange Continuum of Care Coordinated Entry System (CES) that has established a coordinated system that paves the way for more efficient homeless assistance.

Their program helps people move through the system faster by quickly matching them with the appropriate assistance program, and by providing prevention and diversion resources upfront that can oftentimes prevent homelessness. Coordinated Entry is one essential piece of a broader housing crisis resolution system that rapidly returns people who experience homelessness to stable housing.

Other elements include shifting investments towards interventions that achieve the best housing results and removing barriers such that there is an appropriate and effective housing intervention for everyone who needs one.

In order to further assist connecting people experiencing homelessness with additional supportive services offered in Orange County, 2-1-1 Orange County or www.211oc.org has created a “Comprehensive Resource Guide for Orange County”. This virtual one-stop resource guide puts clients in

24 contact with organizations offering supportive services such as substance abuse treatment, mental health services, veterans services, health care, employment services, legal services, disability services, senior services, transportation and shower facilities. Staff routinely makes referrals to 2-1-1 Orange County for those clients seeking information.

During the 2022-23 reporting period, Fountain Valley allocated the maximum allowable amount of CDBG funds to public service programs. While some of the organizations funded do not directly serve the homeless, many of their activities help prevent homelessness. These activities include counseling programs for victims of domestic violence and at-risk youth, services for disable adults, youth services, and senior services. The City’s Home Improvement Program also prevents potential homelessness by offering grants, rebates and loans to low-income, owner occupied households, to pay for repairs to their property that allows them to stay in their homes longer.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The City had 38 persons experiencing homelessness, all unsheltered, during the 2022 Point in Time count. Unsheltered homeless are classified as “worst-case housing needs” in the community. As previously discussed, the City provides homeless services via the homeless service provider, City Net, to assist the FVPD HLO’s in trying to move these clients off the street, and into decent housing. One issue that they often encounter in providing assistance is the fact the homeless population in the City is somewhat transient. Many homeless, including those living in vehicles, may be in the City one day, and gone the next. City Net and/or the HLO may initiate contact with homeless individuals to offer services, and later they cannot be located for follow up.

The FVPD also refers victims of domestic violence that have become unexpectedly homeless, to emergency shelters. Interval House is funded through the CDBG program to provide emergency and transitional housing for city residents affected by domestic violence and assisted 76 households during this reporting period.

As previously discussed, outside of the CDBG program, the Fountain Valley Housing Authority has provided funding for the 50-unit affordable housing apartment complex, Prado, that will has eight units set aside for permanent supportive housing for Veterans Affairs Supportive Housing (VASH) recipients.

This new affordable housing complex will be available to extremely low and very low-income households and address “worst case needs” for low-income households in the community. The project was fully leased up in June 2022.

25 Additionally, the OCHA provided eight Emergency Housing Vouchers, 12 Continuum of Care Permanent Supportive Program Vouchers, and 18 VASH certificates to Fountain Valley households to assist individuals that are experiencing homelessness or at risk of becoming homeless.

26 CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
There are no public housing units located in the City of Fountain Valley.

The City collaborates with OCHA to provide affordable housing opportunities through the provision of HUD’s Housing Choice Voucher (formerly Section 8 Rental Assistance) to extremely low and very lowincome persons/households including seniors, disabled persons and persons with special needs. In 2011, the City’s Housing Authority passed a resolution to authorize the Orange County Housing Authority to continue to provide Housing Choice Vouchers in its Areas of Operation within the City of Fountain Valley. In FY 2022-23, 431 vouchers were issued to Fountain Valley households.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
There are no public housing units located in the City of Fountain Valley; therefore, no actions are being taken.

Actions taken to provide assistance to troubled PHAs
There are no public housing units located in the City of Fountain Valley; therefore, no actions are being taken.

27 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The major barrier to achieving affordable housing goals is the exorbitant cost of existing housing and the increasingly high cost of housing construction and land costs. Another major factor is the lack of available land that would produce an economically viable option for production of housing for low- and moderate-income households.

In an effort to identify land readily available for affordable housing, the City modified the Harbor Boulevard South Island Specific Plan in 2017 to allow affordable housing units to be developed by right. An affordable housing developer purchased vacant land in the specific plan area, built a 50-unit affordable housing apartment complex, which is fully leased up as of June 2022. This is the Prado project mentioned earlier in this report. The complex has eight units dedicated to Permanent Support Housing for VASH recipients and the remainder to primarily extremely low and very low-income households. The VA provides social services on site for the veterans and Life steps Social Service Agency provides services for the remaining units. Lifesteps services are targeted to the tenant population to ensure that the services provided serve the best interests of the tenants.

To further remove barriers to transitional and supportive housing, the City Council passed an ordinance in 2016 permitting transitional and supportive housing by right in all residential zones in an attempt to dissolve barriers to their operation in the city.

In the recently approved Housing Element, the City has made new land available for housing development at higher densities that are expected to result in the addition of affordable housing units.

The City is currently in discussion with four property owners that are moving forward with new residential developments that are expected to yield approximately 2,000 new additional homes.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The City utilizes its entire PSA budget to fund services for underserved individuals in our community. The PSA Grants provide CDBG funds to agencies that have programs for many of the underserved communities including the low and moderate-income elderly, disabled adults and youth.

To assist the underserved elderly frail/elderly population, the City monitored 154 units of rental housing for very low and low-income seniors and collaborated with the Orange County Housing Authority who provided Housing Choice Vouchers to 431 very low-income seniors. The City provided CDBG funds through the PSA Program to: Meals on Wheels that provided delivered meals over the year to 46

28 homebound seniors and provided congregate meals at the senior center for 288 low-income city residents. The Congregate Meal program has reopened as an in-person sit down lunch service as it was prior to COVID-19. Attendance continues to be strong showing the need for food assistance programs for the seniors in the community.

The third year of the Senior Social Services Outreach Program in Response to COVID-19 continued to be successful. This program allows seniors to get virtual, phone and in-person services to locate needed services, and obtain referrals to social service programs and agencies. The program addresses issues that seniors need help with and connects them with programs that can provide specialized assistance.

Many seniors are still isolating due to concerns about COVID-19 and this program helps them connect with services and counseling to hopefully alleviate their concerns, or educate them in healthy ways to deal with it.

The City also provides referrals to County programs that are designed to provide a level of care that allows persons with low incomes to receive assistance such as food, shelter, medical needs. There are also private efforts that the City collaborates with such as low-income utility discount programs.

Through the partnership with Orange County Housing Authority, many of the 431 Housing Choice Vouchers were provided to low-income individuals, including many with physical and mental disabilities.

Additionally, the City continued to ensure all accessibility features are installed during construction of new housing units in compliance with Fair Housing requirements. The City also provided grant monies to Elwyn California who provided case management to 11 developmentally disabled adults however, at mid-year they terminated their grant because they were no longer able to provide services in the area.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The City provides lead based paint hazard testing and/or risk assessment on every home rehabilitation project utilizing CDBG funds.

The City will continue to provide Lead Based Paint Hazard Grants to all approved rehabilitation program recipients as part of home improvement program, in compliance with HUD requirements. If a home tests positive for lead in a project area, the grant will also provide funds for abatement. In FY 2022-23, ten homes were tested for lead-based paint hazards. One home tested positive for lead in an area that was proposed to be part of the rehabilitation project. The lead was abated as part of the rehabilitation project.

Some properties receiving assistance were tested for lead in the previous fiscal year or were exempt from the lead testing requirement due to being built after 1978.

29 Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) According to 2022 Census data estimates, the percentage of the population with income beneath the poverty level in the State of California was 11.5% and in the whole USA, 12.8%. In comparison, the estimated percentage of residents in Fountain Valley with income below the poverty line was 8.8%.

The City utilizes its entire public service budget to supply grants that assist underserved individuals, which includes residents living below poverty level. The Public Service Program provides programs for low and moderate-income elderly, disabled adults and youth that they might not otherwise be able to afford. The City also provide grants, rebates and low interest deferred payment loans to low- income homeowners to assist with any necessary repairs on their owner-occupied property to keep their properties safe and sanitary.

The City also supports many County programs that are designed to provide a level of care that allows persons with extremely low incomes and below to receive assistance such as food, shelter, medical needs. This includes collaborating with private companies to support programs such as low-income utility discount programs. The City continues its partnership with OCHA to provide rental assistance to low-income households.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City of Fountain Valley’s Community Development Department serves as the lead agency for the implementation of all programs/projects/activities outlined within the Consolidated Plan and subsequent Annual Action Plans. The department is comprised of the Housing and Community Development (HCD) Division, Building Division, Code Enforcement, and the Planning Division.

Additionally, the City continued to participate in efforts to work collectively and cooperatively with other Orange County jurisdictions by participating in countywide efforts for all housing programs.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City of Fountain Valley does not operate any public housing; however, relationships with both private for-profit developers and non-profit public service providers remain active as the City continues to implement its community development programs. In order to maintain and enhance existing relationships between public, private and non-profit organizations, the City of Fountain Valley will continue to participate in all local and regional information and referral meetings between agencies. As discussed earlier, the city provides funding to several non-profit social service agencies through the Public Service Agency Grant program.

The City continues to support and encourage efforts of the OCHA to coordinate private housing resources and social service agencies’ programs.

30 Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City of Fountain Valley collaborated with all Orange County cities and the County of Orange to develop a Regional Analysis of Impediments (AI) to Fair Housing Choice for the 5-year period that covers HUD program years 2020-2024. The AI provides: 1) an overview of laws, regulations, and administrative policies and procedures; 2) an assessment of how those laws affect the location, availability, and accessibility of housing; and 3) an assessment of conditions, both public and private, affecting fair housing choice.

To ensure Fountain Valley residents have no-cost access to expert advice regarding fair housing, the City funds Fair Housing Council of Orange County (FHCOC) who provides Fair Housing services to the community. During FY 2022-23, FHCOC handled a total of 126 general housing and discrimination complaints and inquiries from City residents and property owners. 392 possible violations were received from the 126 inquiries. The most common complaints were regarding rental agreements (108), household repairs (26), and 30-day and 60-day notice questions (49). FHCOC was able to assist all residents with their issues without making any outside referrals.

FHCOC provides an annual report detailing the City’s and FHCOC significant accomplishments addressing Fair Housing. The Fair Housing Council of Orange County Analysis of Impediments FY 2022-23 Accomplishments report is attached.

The City continues to explore an inclusionary zoning requirement for all new housing developments that will require that a percentage of the units be made available to low-income households. In the 2020- 2024 Regional Orange County Analysis of Impediments to Fair Housing this was a goal specific to the City of Fountain Valley.

31 CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
HCD Staff - The HCD department prepares an annual report, known as the CAPER, which includes a financial analysis of all HUD, funded activities and programs and an evaluation of each program’s performance in meeting its programmatic expenditure goals and outcomes.

Staff monitors every project, including home rehabilitation and PSAs, to ensure compliance with CDBG regulations. Staff conducts on-site annual audits for all sub-grantees and on- site progress inspections throughout each home rehabilitation project and uses specific checklists for each program. Reasonable accommodation is made for non-English speakers and persons with disabilities if requested.

Housing and Community Development Advisory Board – The Housing and Community Development Advisory Board (HCDAB) meets on a regular basis to review programs and procedures related to the CDBG. Each year the HCDAB reviews the CAPER and forwards their recommendation of approval to the City Council.

City Council - The City Council reviews the CAPER on an annual basis and conducts a public hearing to receive comments from stakeholders and the public.

Quarterly Reports: - On a quarterly basis, the HCDAB is presented with a report that summarizes the accomplishments of PSAs funded under the City’s PSA Grant program.

IDIS: - Integrated Disbursement and Information System – The Finance Department approves staff to make the draw of funds from HUD to ensure all expenses are inputted prior to draw.

32 Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

Public Hearings are conducted in person and information is provided to the public on how to watch City Council meetings online, or on cable, if they chose not to attend in person. Reasonable accommodation can be made for non-English speakers and persons with disabilities if requested.

A Notice of Availability of the City of Fountain Valley’s FY 2022-23 CAPER and dates of public meeting and public hearing was published in the Fountain Valley View on August 24, 2023. The FY 2022-23 CAPER was made available to the public for a 15-day period commencing on September 1, 2023, and ending on September 16, 2023. The Public Notice advised of a public meeting in front of the HCDAB on September 6, 2023, and a public hearing in front of the City Council on September 19, 2023. The draft CAPER was posted on the City of Fountain Valley’s website, at City Hall, at the Fountain Valley Branch of the Library, and also available via email request. The Public Notice provided an email address for public comment for those not wanting to attend in person or mail in comments, and also advised how to view the Council meeting online or on cable television.

A public meeting of the HCDAB meeting was held on September 6, 2023, to review the draft FY 2022-23 CAPER. The meeting agenda was noticed at City Hall and the Recreation Center and was additionally posted on the City’s website. The HCDAB forwarded a recommendation to City Council to approve the CAPER and submit the report to HUD. No public comments were received.

A public hearing was held in the City of Fountain Valley Council Chambers on September 19, 2023, before the Fountain Valley City Council, to review the draft FY 2022-23 CAPER and to receive public comments. The meeting agenda was noticed at City Hall and on the City website. City Council meetings are available to stream on the City’s website and on local cable TV. An email was provided to obtain citizen input on the CAPER for those not able to attend. The Fountain Valley City Council unanimously voted to approve the CAPER and submit it to HUD. No public comments were received. (TBD)

Summary of Public Comments
No public comments were received for the FY 22-23 CAPER. (TBD)

33 CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

The City of Fountain Valley has completed the third year of the 2020-24 five-year Consolidated Plan. The City made effective strides towards meeting its goals as laid out in the Consolidated Plan. The City will continue to implement the projects identified in the Con Plan to benefit low and moderate-income households in the city and also use CDBG-CV funds to continue the Senior Social Services Program in Response to COVID-19. No changes are anticipated to be made to the program.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

34 CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 0 N/A
Total Labor Hours 0
Total Section 3 Worker Hours 0
Total Targeted Section 3 Worker Hours 0
Table 6 – Total Labor Hours
Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers 0
Outreach efforts to generate job applicants who are Other Funding Targeted Workers. 0
Direct, on-the job training (including apprenticeships). 0 Indirect training such as arranging for, contracting for, or paying tuition for, off-site training. 0
Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching). 0
Outreach efforts to identify and secure bids from Section 3 business concerns. 0
Technical assistance to help Section 3 business concerns understand and bid on contracts. 0
Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. 0
Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services. 0 Held one or more job fairs. 0
Provided or connected residents with supportive services that can provide direct services or referrals. 0
Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation. 0 Assisted residents with finding child care. 0
Assisted residents to apply for, or attend community college or a four year educational institution. 0
Assisted residents to apply for, or attend vocational/technical training. 0 Assisted residents to obtain financial literacy training and/or coaching. 0 Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. 0
Provided or connected residents with training on computer use or online technologies. 0
Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses. 0

35 Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.
0 Other. 0
Table 7 – Qualitative Efforts - Number of Activities by Program Narrative
The City did not conduct any activities required to meet Section 3 regulations.

36 ATTACHMENTS

37 FAIR HOUSING COUNCIL

OF ORANGE COUNTY

ANALYSIS OF IMPEDIMENTS
FY 2022-23

ACCOMPLISHMENTS

38 During the 2022-2023 report period the City of Fountain Valley took the following actions (on its own or in cooperation with regional partners and the Fair Housing Council of Orange County (FHCOC)) to overcome impediments to fair housing choice identified in the regional AI:
 Fair Housing Community Education – During 2022-23, the FHCOC regionally conducted or participated in 19 virtual and 81 in-person education and/or outreach activities, reaching a culturally and ethnically diverse audience, in which they made participants aware of fair housing laws and counseling services (including services to help households improve their readiness for a home purchase). As a result of practices that became commonplace and accepted due to the COVID-19 pandemic, the use of virtual education remained a component during the 2022-2023 period, especially for workshop presentations. Seventeen of the 19 virtual activities were not specific to only residents of Fountain Valley, but they were all available to those residents.

Regionally, about 2,800 people were contacted or served by these activities. Through its various regional outreach efforts FHCOC distributed over 31,200 information pieces on fair housing, its services and other housing-related topics, in either English, Spanish or Vietnamese. Most of these items were distributed either directly or via mail or bulk delivery, while some were delivered electronically. Additionally, throughout Orange County FHCOC held 7 virtual training sessions for rental property owners/managers, with another 7 presented in person. FHCOC presented 2 virtual fair housing seminars for housing providers in cooperation with the Apartment Association of Orange County (AAOC). Fourteen general fair housing workshops intended for participation by either housing consumers or providers, or both, were provided throughout Orange County.

Because 12 of these were virtual, they were not specific to residents of Fountain Valley, but they were largely available to those residents.
 Fair Housing Enforcement – On a regional basis, FHCOC staff performed 150 intakes regarding fair housing issues, which resulted in receipt of received 112 allegations of housing discrimination and the opening of 40 case files where the allegations seemed sufficiently meritorious to warrant further investigation and/or action. We also counseled or informed another 110 clients regarding fair housing law and/or rights. Five allegations arose from Fountain Valley and 1 case involved housing in Fountain Valley. On a regional basis, FHCOC also conducted 95 paired telephonic, systemic tests for discriminatory rental housing practices. Four systemic rental tests involved locations in Fountain Valley. County-wide an additional 9 paired telephonic tests of housing providers resulting from clients’ allegations of housing discrimination and 10 paired telephonic systemic pre-application tests of lenders were

39 conducted. While the lending testing previously would have normally been conducted in person, protocols and behaviors initiated by COVID-19 pandemic restrictions have made telephone contact with loan officers commonplace.

Furthermore, 12 paired telephonic and relay operator supported tests were conducted regionally to assess possible discrimination against housing seekers who are deaf or hard of hearing. We also conducted 5 assessments of compliance with accessibility requirements for persons with disabilities at covered multi-family properties built within the last two years.  Housing Dispute Evaluation & Resolution – On a regional basis, activities provided by FHCOC included assisting 3,318 unduplicated households addressing 11,269 issues, disputes and/or inquires. Of these, 129 unduplicated households, involving 393 issues, disputes and/or inquires, were from Fountain Valley.
 Reasonable Accommodations – On a regional basis, 12 inquiries regarding reasonable accommodations and modifications were received by FHCOC that resulted in casework beyond basic counseling that provided direct assistance in requesting an accommodation.

None of the inquiries arose from Fountain Valley. Overall, 8 of the 12 clients requested and received a reasonable accommodation. Two clients did not follow through in process, and the outcome for two others were pending at the end of the program year. Another 55 households were counseled on issues involving reasonable accommodation of a disabilityrelated need at their housing.  Web-based Outreach – FHCOC’s website currently has an on-line housing discrimination complaint-reporting tool that generates an email to FHCOC. It is also used for other, nondiscrimination, housing-related issues. The City of Fountain Valley has a link to the FHCOC website where residents can access this information.
 Monitoring On-line Advertising – Orange County rentals listed on Craigslist were monitored by FHCOC for discriminatory content (as permitted by staffing limitations).

Any discriminatory advertisements were flagged as prohibited and FHCOC responded to these ads through Craigslist’s reply mechanism in order to inform the poster of possible discriminatory content. In most instances it was not possible to identify the property address and the identity of the individual making the posting. When possible FHCOC also brought these ads to the attention of Craigslist to hasten their removal, although the Craigslist reporting mechanism is no longer simple. When investigation was found to be feasible, the ad was referred to FHCOC’s investigators for possible enforcement action. Other on-line rental advertising sites (e.g., OC Register, LA Times, Westside Rentals, Zillow, etc.) were sporadically monitored; however, the lack of an efficient text search function on these sites made monitoring them less practical.

Without exception, among the ‘apt / housing’ Craigslist rental listings, the identified problematic postings indicated restrictions with regard to children under the age of 18 or improper preference for seniors or ‘older adults’ for housing opportunities that did not

40 appear to qualify as housing for older persons (age 55 and over). Overt racial or national origin discrimination in postings was not observed. Advertising in the ‘rooms / shared’ area of Craigslist was observed to have a higher incidence of stated preferences that violated fair housing law. However due to the practical aspects of resource limitations and case law considerations of shared housing situations, most were not acted upon.

With the change in California law effective January 1, 2020 that expanded ‘source of income’ protections to individuals who use forms of housing rent assistance, such as the Housing Choice Voucher (often called ‘Section 8’), FHCOC had previously identified numerous Craigslist postings that contained discriminatory language regarding the use of housing rental assistance during 2020. In the 2022-2023 program year, FHCOC did not find any Craigslist postings for Orange County rentals that discriminated against users of a Housing Choice Voucher, even though this continued to be an issue in other parts of Southern California. However, several callers brought to our attention a few ads for Orange County rentals on other platforms that had stated an illegal refusal to accept housing assistance. When possible we reached out to the individuals offering the housing to demand a change in their ad.
 Monitor Home Mortgage Disclosure Act Data - Ongoing monitoring of Home Mortgage Disclosure Act (HMDA) data continues to be infeasible due to limited resources at FHCOC.

FHCOC last was able to conduct such analysis using 2008 data (then the latest available) in conjunction with the preparation of the 2010-2015 Regional AI. Analysis of updated HMDA data from 2013, as well as other mortgage lending practices, was included as part of the City of Fountain Valley’s FY 2015-2020 Regional Analysis of Impediments to Fair Housing Choice (AI), which was submitted as part of its Five Year Consolidated Plan FY 2015 - 2020. Similarly, the recently completed Regional Orange County Analysis of Impediments to Fair Housing Choice for the 2020-2024 Consolidated Plan cycle, contained some basic analysis of regional HMDA date for the period of 2014-2017. That analysis showed disparities in the access to loans on the basis of race, with minority applicants having less access than white applicants.  Other Actions to Affirmatively Further Fair Housing - During 2022-23, FHCOC continued efforts to promote housing affordability within Orange County. It provided services and outreach to organizations involved in the creation and preservation of affordable housing.

These groups included the Kennedy Commission, Mental Health Association of Orange County, Radiant Health (formerly Aids Services Foundation), Affordable Housing Clearinghouse, Jamboree Housing Corporation, Mercy House, South County Outreach, Families Forward, Orange County Congregations Community Organizations, and Orange County Community Housing Corporation.

During the 2022-23 reporting period, FHCOC continued to offer fair housing training sessions, and these were open to all local government staff. As has become the norm due to COVID-19 imposed restrictions more than half of all trainings were conducted virtually. Training activity

41 included providing training to staff of the Orange County Housing Authority (OCHA), which serves Fountain Valley. We also provided an in-person training for housing providers that was organized by and sponsored by OCHA at its office. Any City of Fountain Valley staff attending our offered training could receive certification of their attendance.

The FHCOC produced and provided written fair housing related materials in English, Spanish and Vietnamese to the persons in Fountain Valley. Due to limitations necessitated by the COVID-19 pandemic our ability to distribute physical materials was severely limited during the first half of the program year, as public meetings and events were still significantly limited. Some materials were distributed by mail or email to persons contacting our agency or participating in virtual outreach activities. FHCOC also undertook specific virtual outreach efforts to immigrant populations in low-income neighborhoods. On a regional basis, an estimated 1,050 limited English proficiency (LEP) households were served during the 12 month program period, through a either telephonic contact, or a combination of virtual and in-person education and outreach activities. FHCOC also continued to implement activities under HUD Fair Housing Initiatives Program grants, for both education and outreach and fair housing enforcement. These program efforts specifically targeted fair housing services to persons with disabilities, minority groups and immigrant communities, especially immigrants with limited English proficiency. Program efforts included a fair housing testing program that sought to involve members of immigrant populations with limited English proficiency, both for the purpose of enforcing fair housing laws as testers and as a vehicle to increase outreach to these populations.

Through its status as a HUD-approved Housing Counseling agency, FHCOC assisted individuals, including those with limited English proficiency (LEP), with various housing related problems. This included being available to counsel and assist those who had received loans with documents, all prepared in English, which had terms that may have been different from what they believed or were informed they were obtaining, or of which they had less than a full understanding. Many of the other counseling activities under its HUD-approved Housing Counseling also assisted individuals with LEP.

42 PROOF OF PUBLICATION

PUBLIC NOTICE

PUBLIC COMMENT PERIOD

43

44

45 CDBG ELIGIBLE AREAS
FOR

CODE ENFORCEMENT

46

47 HUD REPORTS
PR-26 CDBG Financial Summary
Report
PR- 26 CDBG-CV Financial Summary
Report
PR-50 CDBG Expenditure Report
PR-50 CDBG-CV Expenditure Report

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: September 19, 2023 Members of the City Council
SUBJECT: Public Hearing and Introduction: Code Amendment No. 23-01 – An Amendment To Fountain Valley Municipal Code (FVMC) Sections 21.54.050 and 21.54.070 Regarding Entitlement Extensions
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 Fountain Valley Municipal Code (FVMC) currently places a time limit of one-year on entitlements before they expire. Within the 1-year time frame after entitlement approval, the applicant, or developer, must “exercise” the approved entitlement per FVMC 21.54.050(b).

Exercising the entitlement involves obtaining a building permit, grading permit, diligently continuing construction activity, or actually implementing the allowed land use. Additionally, two additional 180-day extension periods may be approved by the city upon proof of a good faith effort to exercise the entitlement.

A recent increase in extension requests from developers prompted staff to survey surrounding cities for their entitlement approval time limits and extensions. Two (2) of the five (5) cities surveyed allow up to a total of three (3) years for entitlement approvals and extensions.

Additionally, this possible three (3) year time limit coincides with the City’s approval and extension time period within the Crossings Specific Plan.

At the Planning Commission meeting of August 9, 2023, the Planning Commission voted 5-0 approving Resolution No. 23-16 recommending the City Council approve Code Amendment No. 23-01. Staff recommends the City Council conduct a public hearing and introduce the attached Ordinance approving Code Amendment No. 23-01 to amend FVMC 21.54.050 and

21.54.070 regarding entitlement extensions (Attachment #1).

DISCUSSION
Recently, the Planning Division of the Community Development Department has received several requests for extensions to entitlements due to rising construction costs and lingering effects of COVID-19. Over the last 30 years, there have been a total of 11 requests for entitlement extensions with no more than two (2) requests in any given year. Most recently, these requests for extensions of entitlements have increased to include three (3) in the first three months of 2023.

Council Action Request
Code Amendment No. 23-01 Entitlement Extensions Ordinance September 19, 2023

As rising construction costs and lingering effects of COVID-19 are affecting construction throughout Southern California, and due to the influx of extension requests, staff took the opportunity to compare our code to surrounding cities to see if there is room to improve our code to make it more business friendly and consistent with surrounding cities.

Currently, FVMC Chapter 21.54.050 places a time limit of one-year on entitlements before they expire. Within the 1-year time frame after project approval, the applicant, or developer, must “exercise” the approved entitlement per FVMC 21.54.050(b). It’s important to note that exercising the entitlement usually comes after the applicant has completed the process of producing construction drawings to obtain a building permit, gone through plan check review through the city and any other required agencies, obtain building and/or grading permits, and hired a contractor to begin the work.

An entitlement may only be exercised when one of the following happens:

1. Obtained a building permit with continuous on-site construction activity including pouring of foundations, installation of utilities or other similar substantial improvements has commenced;

2. Obtained a grading permit and has completed a significant amount of on-site grading, as determined by the director;

3. Diligently continued the approved construction/grading activities without stopping for more than one hundred eighty days; or

4. Actually implemented the allowed land use, in its entirety, on the subject property in compliance with the conditions of approval.

Additionally, if one-year is not sufficient time to exercise the entitlement, two additional 180- day periods (for a maximum of 12 months total) may be approved if the applicant can prove they have made a good faith effort to exercise the entitlement.

A survey of the surrounding cities of Garden Grove, Westminster, Costa Mesa, Huntington Beach, and Santa Ana revealed that these cities allow entitlement approvals for 1-2 years and extensions of entitlements for 1-2 years as shown in Table 1: Entitlement Approvals/Extensions below. Additionally, Table 1 also shows the specific entitlement approvals and extension times for the Crossings Specific Plan. All other Specific Plans in Fountain Valley do not outline specific entitlement time frames and therefore defer to the FVMC.

Table 1: Entitlement Approvals/Extensions
City Entitlement Approval Period Extension Total Possible Approval Period Garden Grove 1 year 1 year 2 years
Westminster 1 year 1 year 2 years
Costa Mesa 2 years 1 year 3 years
Huntington Beach 1 year 1 year 2 years
Santa Ana 2 years 1 year 3 years
Crossings Specific Plan 1 year 2 one-year extensions 3 years As noted in Table 1, the cities of Costa Mesa and Santa Ana allow for a total length of 3 possible years for entitlement approval and allowable extensions. Additionally, the Crossings Specific Plan also allows for a total of 3 possible years for entitlement approval and allowable extensions.

Council Action Request
Code Amendment No. 23-01 Entitlement Extensions Ordinance September 19, 2023

Staff has proposed in the attached Ordinance to align the FVMC with the cities of Costa Mesa and Santa Ana, and align the FVMC with the existing entitlement approvals/extensions permitted in the city’s own Crossing Specific Plan, to allow for a total of 3 possible years for entitlement approval and extensions through an entitlement approval period of 1-year and the allowance of up to two 1-year extensions.

Lastly, FVMC Chapter 21.54.070 outlines that for a period of twelve months following an entitlement approval, disapproval, or revocation/modification of a discretionary entitlement, no application for the same or substantially similar discretionary entitlement for the same site shall be filed. This section fails to include entitlements that have been extended per FVMC

21.54.050 and thus will be revised with the attached Ordinance.

General Plan Consistency
The proposed amendment will help to enhance the City’s economic base and business environment by assisting in the preservation, improvement, and intensification of existing commercial development (General Plan Goal/Policy 2.12.1). Additionally, the proposed amendment will meet the General Plan Advisory Committee’s values and issues for the General Plan Update to provide for a fiscally sustainable municipal government and to ensure economic prosperity of the city. Extending entitlement extension time will allow property owners additional time to get through the plan check process once their entitlements are approved by the city without having to re-apply for entitlements for their same project. This will help contribute to enhancement of the City’s economic base, provide for a fiscally sustainable municipal government, and will help ensure economic prosperity for developers.

Additionally, this amendment aligns with the cities of Costa Mesa and Santa Ana, as well as Fountain Valley’s own Crossings Specific Plan, by providing up to 3 years total, including possible extensions, to develop a project.

FINANCIAL REVIEW
There is no financial impact associated with approving the proposed code amendment. This Ordinance will simply allow for the possibility of additional time for developers to get through the plan check process to develop their projects successfully.

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

ENVIRONMENTAL IMPACT REVIEW
Adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15060(c)(2)(the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3)(there is no possibility the activity in question may have a significant effect on the environment). (Attachment #2).

ATTORNEY REVIEW
The Attorney for the City has reviewed the attached Ordinance.

Council Action Request
Code Amendment No. 23-01 Entitlement Extensions Ordinance September 19, 2023

ALTERNATIVES
Alternative No. 1: Introduce the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 23-01 to amend the Fountain Valley Municipal Code (FVMC) Sections 21.54.050 and 21.54.070 regarding entitlement extensions.

Alternative No. 2: Do not introduce the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 23-01 to amend the Fountain Valley Municipal Code (FVMC) Sections 21.54.050 and 21.54.070 regarding entitlement extensions.

RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1 to introduce the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 23-01 to amend the Fountain Valley Municipal Code (FVMC) Sections 21.54.050 and 21.54.070 regarding entitlement extensions.

Prepared by: Steven Ayers, Principal Planner
Reviewed by: Omar Dadabhoy, Community Development Director Approved by: Maggie Le, City Manager
Attachments:

1. Ordinance for Code Amendment No. 23-01

2. Notice of Exemption

ORDINANCE NO._____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY APPROVING A CATEGORICAL EXEMPTION PER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVING CODE AMENDMENT (CA) NO. 23-01 TO AMEND THE FOUNTAIN VALLEY MUNICIPAL CODE (FVMC) SECTIONS 21.54.050 AND 21.54.070

REGARDING ENTITLEMENT EXTENSIONS
WHEREAS, the Fountain Valley City Council adopted the Development Code Update on December 7, 2000; and
WHEREAS, FVMC Chapter 21.54.050 places a time limit of 1-year on entitlements before they expire with allowances for two (2) additional one hundred eighty day extension periods for a maximum of a twelve month extension on approvals of a project; and WHEREAS, FVMC Chapter 21.54.070 outlines that for a period of twelve months following the approval, disapproval or revocation/modification of a discretionary entitlement, no application for the same or substantially similar discretionary entitlement for the same site shall be filed. This section fails to include entitlements that have been extended per FVMC

21.54.050; and
WHEREAS, the Crossings Specific Plan (CSP) places limits on entitlement approval and extensions that differ than the FVMC by allowing two (2) one-year extensions. The CSP Section 2.0.5.A.6 specifically states, “An approved Development Plan shall be valid for a period of one year. A maximum of two one-year time extensions may be requested. A time extension request must be made in writing by the applicant, property owner(s), and/or authorized designee, a minimum of thirty days prior to the expiration of the current approval.

If construction activity does not commence within the approval or extension period, the entitlement shall be terminated”; and
WHEREAS, a survey of the surrounding cities of Garden Grove, Westminster, Costa Mesa, Huntington Beach, and Santa Ana revealed that these cities allow entitlements approvals for 1-2 years and extensions of entitlements for 1-2 years; and WHEREAS, the Cities of Costa Mesa and Sana Ana allow a total length of 3 years taking into account entitlement approval and allowable extensions when combined; and WHEREAS, over the last 30 years, there have been 11 requests for entitlement extensions with no more than two requests in any given year. Most recently, these requests for extensions of entitlements have increased to include three (3) in the first three months of 2023 due to rising construction costs and the lingering effects of COVID-19; and WHEREAS, the City Council of the City of Fountain Valley wishes to provide consistency in entitlement time limits and extensions between the CSP and the FVMC; and WHEREAS, the City Council of the City of Fountain Valley wishes to provide entitlement time limits and extensions consistent with nearby cities; and

WHEREAS, the Fountain Valley Planning Commission considered the proposed Code Amendment No. 23-01 at a duly noticed public hearing on August 9, 2023, and by a vote of 5-0 recommended the City Council approve a Categorical exemption per CEQA and approve Code Amendment No. 23-01 to amend FVMC Sections 21.54.050 and 21.54.070 regarding entitlement extensions; and
WHEREAS, the proposed Code Amendment No. 23-01 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code.

SECTION 1
The City Council hereby determines that Code Amendment No. 23-01 is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15060(c)(2)(the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3)(there is no possibility the activity in question may have a significant effect on the environment).

SECTION 2
The City Council finds that due notice of the public hearing on September 19, 2023, conducted in the City Council Chambers, 10200 Slater Avenue, Fountain Valley, was given as required by the Fountain Valley Municipal Code, Title 21, and the State of California. Public notice of this hearing and a copy of the Planning Commission agenda were posted at City Hall, Recreation Center and the Fountain Valley Library.

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

1. The proposed amendment ensures and maintains internal consistency with the actions, goals, objectives and policies of the General Plan, and would not create any inconsistencies with Title 21, in the case of a title amendment. The proposed amendment will help to enhance the City’s economic base and business environment by assisting in the preservation, improvement, and intensification of existing commercial development (General Plan Goal/Policy 2.12.1). Additionally, the proposed amendment will meet the General Plan Advisory Committee’s values and issues for the General Plan Update to provide for a fiscally sustainable municipal government and to ensure economic prosperity of the city. Extending entitlement extension time will allow property owners additional time to get through the plan check process once their entitlements are approved by the city without having to re-apply for entitlements for their same project. This will help contribute to enhancement of the City’s economic base, provide for a fiscally sustainable municipal government, and will help ensure economic prosperity for developers.

Additionally, this amendment aligns with the cities of Costa Mesa and Santa Ana by providing up to 3 years total, including possible extensions, to develop a project.

2. The proposed amendment would not be detrimental to the public convenience, health, interest, safety or welfare of the city. The proposed amendment will allow

property owners more time to develop their project with longer extension times if necessary consistent with surrounding cities and the Crossings Specific Plan. The amendment will have no effect on the detriment to the public convenience, health, interest, safety or welfare of the city as it will only extent time for a property owner to develop a project that has already been found to not be a detriment to the public convenience, health, interest, safety or welfare of the city through its own approval of the entitlement.

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

4. The proposed amendment is internally consistent with other applicable provisions of Title 21. As noted in finding 1 above, Code Amendment No. 23-01 would amend FVMC 21.54.050 and 21.54.070 to provide extended time limits on extensions to entitlements only. This amendment will be internally consistent with other applicable provisions of Title 21 of the FVMC. There are no other known inconsistencies with the proposed amendment and other applicable provisions of Title 21.

SECTION 4
Section 21.54.050 is hereby amended to read as follows:
“…

21.54.050 Time limits and extensions.
(a) Time Limits.
(1) To ensure continued compliance with the provisions of this chapter, each approved entitlement shall expire twelve months from the date of approval, unless otherwise specified in the entitlement, if the use has not been exercised.
(2) Time extensions may be granted, or conditionally granted, in compliance with subsection (c) of this section.
(3) If an entitlement has not been exercised within the established time frame, and a time extension is not granted, the provisions of subsection (c) of this section shall deem the entitlement void.
(b) Entitlement Implementation.
(1) An approved entitlement shall be exercised before its expiration. The entitlement shall not be deemed exercised until the applicant has:
(A) Obtained a and acted upon a building permit with continuous on-site construction activity including pouring of foundations, installation of utilities or other similar substantial improvements has commenced; or

(B) Obtained a grading permit and has completed a significant amount of on-site grading, as determined by the director; or
(C) Diligently continued the approved construction/grading activities without stopping for more than one hundred eighty days; or
(D) Actually implemented the allowed land use, in its entirety, on the subject property in compliance with the conditions of approval.
(2) Project Phasing.
(A) Where the entitlement provides for development in two or more phases or units in sequence, the entitlement shall not be approved until the review authority has approved a phasing plan for the entire project site.
(B) The applicant shall not be allowed to develop a portion of the proposed development under the original approval, and then develop the remaining portion(s) in compliance with this section, without prior review authority approval.
(C) Subsequent phases of an approved project shall be commenced within twelve months of the exercising of the previous phase’s entitlement or the entire project entitlement shall expire.
(D) If the application for the entitlement also involves the approval of a tentative map, the phasing shall be consistent with the tentative map and the entitlement shall be exercised before the expiration of the companion tentative map.
(c) Extensions of Time.
(1) The applicant shall file a written request for an extension of time with the department at least thirty days before the expiration of the entitlement, together with the filing fee required by the city’s fee resolution.
(2) The review authority shall determine whether the applicant has made a good faith effort to exercise the entitlement.
(3) The burden of proof is on the applicant to establish, with substantial evidence beyond the control of the applicant (e.g., demonstration of financial hardship, legal problems with the closure of the sale of the parcel, poor weather conditions in which to complete construction activities, etc.), why the entitlement should be extended. (d) Action on Expiration/Extension.
(1) Upon good cause shown, extensions may be approved or approved with modifications by the review authority that originally approved the entitlement, whose decisions may be appealed in compliance with Chapter 21.60 (Appeals) of this title. (2) The maximum number of months that an entitlement may be extended shall not exceed a total of two additional one year hundred eighty-day periods (for a maximum of two years twelve months total) beyond the expiration of the original approval. …”

SECTION 5
Section 21.54.070 is hereby amended to read as follows:
“…
(a) Resubmittals Prohibited Within Twelve Months. For a period of twelve months following the approval, disapproval, or revocation/modification, or approved extension of a discretionary entitlement, no application for the same or substantially similar discretionary entitlement for the same site shall be filed. …”
SECTION 6
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would subsequently be declared invalid or unconstitutional.

SECTION 7
The City Clerk shall certify to the adoption of this ordinance and cause it to be published as required by law. This ordinance shall become effective thirty (30) days after the date of its adoption.

PASSED, APPROVED AND ADOPTED THIS ___ DAY OF ______, 2023____.

ATTEST:
________________________ ________________________
Rick Miller, City Clerk Kim Constantine, Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
___________________________
Attorneys for the City
City of Fountain Valley

CITY OF FOUNTAIN VALLEY
Planning Department
10200 Slater Avenue, Fountain Valley, CA 92708
714-593-4425 – fountainvalley.org
Notice of Exemption_________________________________________________ TO: Office of Planning and Research FROM: City of Fountain Valley P.O. Box 3044, Room 113 10200 Slater Avenue
Sacramento, CA 95812-3044 Fountain Valley, CA 92708
County Clerk
County of Orange
12 Civic Center Plaza
Santa Ana, CA 92701
Project Title: _________________________________________________________________________ Project Location/Address: ______________________________________________________________ Project Activity/Description: _____________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ Public Agency Approving Project: City of Fountain Valley, Orange County, California Project Applicant: _____________________________________________________________________ Project Applicant’s Address: ___________________________________Phone Number: ____________ _____________________________________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080 (b)(1); 15268);
Declared Emergency (Sec. 21080 (b((3); 15269 (a));
Emergency Project (Sec. 21080 (b)(4); 15269 (b) (c));
Categorical Exemption. State type and section number: _________________________________ Statutory Exemptions. State code number: ___________________________________________ Reasons why project is exempt: __________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Lead Agency Contact Person: ___________________________ Contact Phone: _____________________________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project?: Yes No Signature: ________________________________ Date: _____________ Title: ___________________ Signed by Lead Agency Signed by Applicant
Entitlement Extensions - Code Amendment No. 23-01
City of Fountain Valley - Citywide
An amendment to the Fountain Valley Municipal Code
(FVMC) Sections 21.54.050 and 21.54.070 regarding entitlement extensions.

City of Fountain Valley
10200 Slater Ave., Fountain Valley, CA 92708 (714)593-4425 15060(c)(2) and 15061(b)(3)
This request is exempt from CEQA pursuant to CEQA
guidelines 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment).

Steven Ayers, Principal Planner 714-593-4431

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: September 19, 2023 Members of the City Council
SUBJECT: Public Hearing and Introduction: Code Amendment No. 23-02 – An Amendment To Fountain Valley Municipal Code Section 21.08.055 For Accessory Dwelling Units (ADU’s)
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
On April 27, 2023, the City received a letter from the California Department of Housing and Community Development (HCD) noting the city’s ADU Ordinance, which was approved on February 7, 2023 through Ordinance No. 1597, was non-compliant with sections 65852.2, 65852.22, and 65852.26 of the California Government Code (Attachment #1). The six (6) areas requiring changes to the City’s ADU Ordinance include regulations on zoning, height allowance, separate sale, visibility, accessory structures, and minimum size.

On June 7 2023, staff met with HCD to discuss their findings on Fountain Valley’s ADU Ordinance. The discussion also revealed other areas of concern from HCD that must be changed to comply with state law including regulations on building separation, garage doors for garage conversions, and Junior ADU’s.

The attached Ordinance incorporates changes noted by HCD in the letter dated April 27, 2023 as well as the changes discussed with HCD on June 7, 2023 (Attachment #2).

At the Planning Commission meeting of August 9, 2023, the Planning Commission voted 5-0 approving Resolution No. 23-18 recommending the City Council approve Code Amendment No. 23-02. Staff recommends the City Council conduct a public hearing and introduce the attached Ordinance approving Code Amendment No. 23-02 to amend Fountain Valley Municipal Code (FVMC) 21.08.055 for ADU’s.

DISCUSSION
On December 20, 2022, the Fountain Valley City Council adopted Urgency Ordinance No. 1596 compliant with legislation approved by Governor Newsom in 2022, Assembly Bill (AB) 2221 and Senate Bill (SB) 897, which became effective on January 1, 2023.

Shortly thereafter, on February 7, 2023, the City Council adopted Ordinance No. 1597

Council Action Request
Code Amendment No. 22-06 Accessory Dwelling Units Ordinance September 19, 2023

approving an ADU ordinance compliant with AB 2221 and SB 897, thus replacing and making Urgency Ordinance No. 1596 null and void.

On February 28, 2023, the city sent Ordinance No. 1597 to the Department of Housing and Community Development (“HCD”) through the email address [email protected] as required by Government Code Section 65852.2(h) and the city received confirmation of the receipt of Ordinance No. 1597 on the same day.

On April 27, 2023, the city received a letter from HCD stating that, in HCD’s opinion, Ordinance No. 1597 was non-compliant with sections 65852.2, 65852.22, and 65852.26 of the California Government Code (Attachment #1). The letter also states that the City must provide a written response to the letter by May 26, 2023. The letter outlines six (6) areas where Fountain Valley’s ADU Ordinance is deficient as described below and the cities response to each area.

1. Section 21.08.055 (a)(4) – Zoning – The Ordinance states, “Accessory Dwelling Unit(s) shall be permitted on a residentially zoned parcel…” However, Government Code section 65852.2, subdivision (a)(1) and (a)(1)(D)(ii), requires ADUs “within areas zoned to allow single family or multifamily use”. Referring only to “residentially zoned” parcels may inadvertently omit mixed use zones. To promote clarity, the City should rewrite this section to mirror State ADU Law.

City Response – Edits were made to (a)(4) and (b)(4) noting that ADU’s shall be permitted in areas zoned to allow for single-family or multifamily dwelling residential use on lots that include an existing or proposed dwelling.

2. Section 21.08.055 (a)(5)(B), (b)(5)(B), (b)(13) – Height Allowance – The Ordinance describes a unit subject to Government Code section 65852.2, subdivision (e)(1)(B), in several different situations. Each reference includes a height maximum of 16 feet. However, Government Code section 65852.2, subdivision (e)(1)(B), directly refers to subdivision (c)(2)(D), which increases height maximums under certain conditions. The City must amend the language to reflect current State ADU Law.

City Response - Edits made to (a)(5)(B), (b)(5)(B), and (b)(13) to remove the height limitation from the code. Section (b)(17) was amended to reflect state law regarding maximum height allowed for an ADU.

3. Section 21.08.055 (a)(7), (b)(7) – Separate Sale – The Ordinance prohibits separate sale of an ADU. However, Government Code section 65852.26 creates a narrow exception to allow separate conveyance of an ADU to a qualified buyer if the property was built or developed by a qualified nonprofit corporation, among other things. The City must amend the Ordinance to reflect State ADU Law.

City Response - Edits made to (a)(7), (a)(14), (b)(7), and (b)(23) regarding sale/conveyance under 65852.26. This California Government Code

Council Action Request
Code Amendment No. 22-06 Accessory Dwelling Units Ordinance September 19, 2023

Section allows for an ADU to be sold or conveyed separately from the primary residence to a qualified buyer if the ADU or primary dwelling was built/developed by a qualified nonprofit corporation, there is an enforceable restriction on the land that the ADU be sold to low-income families for a restricted 30 years, the property is held pursuant to a recorded tenancy in common agreement, a grant deed naming the grantor, grantee, and describing the property interests being transferred is recorded, and if requested by the utility the ADU has separate water, sewer, and electrical to the utility. The edits to the Fountain Valley ADU Ordinance were made by the City Attorney’s Office and comply with Government Code Section 65852.26.

4. Section 21.08.055 (a)(18), (b)(9), (b)(12) – Visibility – The Ordinance prohibits entry for an ADU “onto, or parallel to, a front or side yard public street…” and requires entries to be screened “as not to be visible from the public right-of-way”.

It states, “Staircases for two-story attached accessory dwelling units shall be internal...” It later states that detached ADUs “must clearly subordinate by location and size.” However, State law requires that ADUs and junior accessory dwelling units (JADUs), have an independent entry into the unit (Gov. Code, § 65852.2, subd. (e)(1)(a)(ii) and Gov. Code, § 65852.22, subd. (a)(5)). A constraint on the location of an entry door, including provisions necessary to serve entry on a second-floor unit, such as external staircases, are excessively constraining.

Furthermore, “clearly subordinate” is a subjective term. Government Code section 65852.2, subdivision (a)(6), states that, “a local agency shall provide an approval process that includes only ministerial provisions for the approval of accessory dwelling units.” The Ordinance also indicates that a detached ADU “must be located in the rear yard.” However, local development standards, regarding location of the ADU as well as visibility, that are provided by the Ordinance pursuant to Government Code section 65852.2, subdivisions (a) through (d), may not preclude ADUs created under Government Code section 65852.2, subdivision (e). Therefore, the City must remove these sections.

City Response - Edits made to a(18), (b)(9), and (b)(12) regarding entrances/location. HCD also required that our ADU Ordinance note that these sections do not apply to ADU’s created under Section 65852.2, subdivision (e) which applies to internal units, JADU’s, and detached ADU’s that are 800 square feet or less. This means that internal units, JADU’s, and detached ADU’s that are 800 square feet or less cannot be limited to two entrances and detached ADU’s less than 800 square feet can provide a building separation from the main dwelling less than 10 feet.

5. Section 21.08.055 (b)(8)(D) – Accessory Structure – The Ordinance states “The maximum unit sizes outlined in this section… shall include an existing or proposed garage space if designated for the accessory dwelling unit.” However, Government Code section 65852.2, subdivision (j)(1), defines ADUs as “an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing

Council Action Request
Code Amendment No. 22-06 Accessory Dwelling Units Ordinance September 19, 2023

primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.” A garage is not included in the ADU definition.

Further, in relation to provisions for living, subdivision (j)(4) defines the “living area” to mean the interior habitable space of a dwelling unit, including basements and attics but does not include garages. Therefore, garages may not be included in square footage calculation toward an ADU. The City must remove this provision.

City Response - Edits made to (b)(8)(D) to address garage size only when designated for an ADU.

6. Section 21.08.055 (b)(8)(A) – Minimum Size – The Ordinance permits a minimum size of 220 square feet for an ADU. However, Government Code section 65852.2, subdivision (j)(1)(A), provides that ADUs may be efficiency units. Government Code section 65852.2, subdivision (j)(3), then defines “efficiency unit” as having the same definition as Section 17958.1 of the Health and Safety Code, which permits a minimum size of 150 square feet. Therefore, the City must amend the language to reflect State statute.

City Response – Edits made to (b)(8)(A) and (d)(8) to min size of 150.

On May 26, 2023, staff notified HCD that updates would be prepared for Planning Commission and City Council consideration this summer. Additionally on June 7, 2023, staff had an informal meeting with HCD to discuss their findings that Fountain Valley’s Ordinance does not comply with State ADU Law. Lastly, during the discussion with HCD, other areas of concern were discussed including building separation, garage doors for garage conversions, and Junior ADU’s (JADU’s).

Building Separation
Fountain Valley’s existing ADU Ordinance requires a building separation of 10 feet between the main dwelling unit and a detached ADU. However, per Government Code Section 65852.2 notes that no development standard shall apply that would not permit at least an 800 square foot ADU with 4 foot setbacks. Therefore, the proposed ordinance requires a 10 foot building separation between the main dwelling unit and a detached ADU, similar to any other detached structure in Fountain Valley, unless the ADU is 800 square feet or less.

Garage Doors for Garage Conversions
Fountain Valley’s existing ADU Ordinance requires that the garage doors of a garage that has been converted to an accessory dwelling unit shall be removed and replaced with a structural wall. Government Code Section 65852.2 notes that garage conversions are ministerial approvals, meaning they require only a building permit, and subjective requirements such as the architectural compatibility of requiring a garage door to be replaced with a solid wall are not allowed. Therefore, the proposed ordinance eliminates any language requiring garage door replacement for a garage conversion. In this scenario, garage doors may remain visible from the outside of the garage with a false insulated wall on the inside of the garage or, if an applicant chooses, the garage door can

Council Action Request
Code Amendment No. 22-06 Accessory Dwelling Units Ordinance September 19, 2023

be replaced with a new solid wall. Either way, the garage conversion space must meet certain Building Code and Energy Code requirements for a habitable conditioned space.

Junior ADU’s
Fountain Valley’s existing ADU Ordinance requires that JADU’s are permitted in the R1 and GH zone. Per Government Code Section 65852.22, JADU’s are permitted on a lot where a single-family residences are permitted. Per FVMC 21.08.030, single-family dwellings are permitted in the R1, GH, and R2 zone. Upon review with HCD, rather than name the zones where JADU’s are permitted, the proposed ordinance simply states that JADU’s are permitted in any residential zone with one proposed or existing single-family dwelling per lot.

State Review
State law requires that all local ADU ordinances be sent to the Department of Housing and Community Development (HCD) within 60 days after adoption. After adoption of an ordinance, HCD may submit written findings to the local agency as to whether the ordinance complies with state law. If HCD finds that the local agency’s ordinance does not comply with state law, HCD will notify the local agency and will provide the local agency with a reasonable time, no longer than 30 days, to respond to the findings before taking any other action authorized by state law, including notifying the Attorney General that the local agency is in violation of state law.

Although, HCD does not provide preapproval for ADU Ordinances prior to Planning Commission and City Council review, specific direction was provided to staff regarding compliance with state law during our informal meeting on June 7, 2023. This does not, however, preclude further comments from arising from HCD if Code Amendment 23-02 is adopted by City Council and sent to the State for another review as required by state law.

General Plan Consistency
The proposed ordinance will promote and encourage the development of a variety of housing opportunities to accommodate current and projected households by promoting the construction of additional dwelling units to accommodate Fountain Valley’s share of regional housing needs in accordance with adopted land use policies (General Plan Housing Element Goal #1/Policy 1.1). Also, the ordinance will be consistent with California Government Code 65852.2, 65852.22, and Title 21 and would not create any inconsistencies with Title 21, in the case of a title amendment.

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

This Ordinance will simply bring the City’s ADU Ordinance into compliance with the findings from HCD to provide consistency with state law.

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

Council Action Request
Code Amendment No. 22-06 Accessory Dwelling Units Ordinance September 19, 2023

ENVIRONMENTAL IMPACT REVIEW
Adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) under Public Resources Code section 21080.17 [statutory exemption for second unit ordinances]; CEQA Guidelines sections 15282(h) [statutory exemption for second unit ordinances]; 15303 [new construction or small structures] and 15305 [minor alterations to land]. This ordinance is also exempt per CEQA Guidelines section 15061, because this ordinance will not have a significant effect on the environment, because ADU’s will largely constitute infill housing which is exempt from CEQA (Attachment #3).

ATTORNEY REVIEW
The Attorney for the City has reviewed the attached Ordinance.

ALTERNATIVES
Alternative No. 1: Introduce the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 23-02 to amend the Fountain Valley Municipal Code (FVMC) Section 21.08.055 for accessory dwelling units.

Alternative No. 2: Do not introduce the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 23-02 to amend the Fountain Valley Municipal Code (FVMC) Section 21.08.055 for accessory dwelling units.

RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1 to introduce the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 23-02 to amend the Fountain Valley Municipal Code (FVMC) Section 21.08.055 for accessory dwelling units.

Prepared by: Steven Ayers, Principal Planner
Reviewed by: Omar Dadabhoy, Community Development Director Approved by: Maggie Le, City Manager
Attachments:

1. HCD Letter dated April 27, 2023

2. Ordinance for Code Amendment No. 23-02

3. Notice of Exemption

ORDINANCE NO._____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY APPROVING A CATEGORICAL EXEMPTION PER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVING CODE AMENDMENT (CA) NO. 23-02 TO AMEND THE FOUNTAIN VALLEY MUNICIPAL CODE (FVMC) SECTION 21.08.055 FOR ACCESSORY
DWELLING UNITS (ADU’S)
WHEREAS, the Fountain Valley City Council adopted the Development Code Update on December 7, 2000; and
WHEREAS, on December 5, 2017, the Fountain Valley City Council adopted Ordinance No. 1527 approving an ADU ordinance compliant with Assembly Bill (AB) 2299 and Senate Bill (SB) 1069 that amended California Government Code 65852.2 and 65852.22; and
WHEREAS, on March 17, 2020, the Fountain Valley City Council adopted Ordinance No. 1558 approving an ADU ordinance compliant with AB 68, AB 881, SB 13, AB 587, and AB 670 that amended California Government Code 65852.2 and 65852.22; and WHEREAS, on December 20, 2022, the Fountain Valley City Council adopted Urgency Ordinance No. 1596 compliant with legislation approved by Governor Newsom, AB 2221 and SB 897, which became effective on January 1, 2023; and WHEREAS, on February 7, 2023, the Fountain Valley City Council adopted Ordinance No. 1597 approving an ADU ordinance compliant with AB 2221 and SB 897, thus replacing and making Urgency Ordinance No. 1596 null and void; and WHEREAS, per Government Code Section 65852.2(h), a local agency shall submit a copy of the ordinance adopted to the Department of Housing and Community Development within 60 days after adoption. After adoption of an ordinance, the department may submit written findings to the local agency as to whether the ordinance complies with this section; and
WHEREAS, on February 28, 2023, the city sent Ordinance No. 1597 to the Department of Housing and Community Development through the email address [email protected] and the city received confirmation of the receipt of Ordinance No. 1597 on the same day; and
WHEREAS, on April 27, 2023, the city received a letter from the Department of Housing and Community Development ("HCD") stating that, in HCD’s opinion Ordinance No. 1597 was non-compliant with sections 65852.2, 65852.22, and 65852.26 of the California Government Code; and
WHEREAS, pursuant to HCD’s request, the City of Fountain Valley has revised its ADU Ordinance to address the concerns expressed by HCD; and

WHEREAS, the Fountain Valley Planning Commission considered the proposed Code Amendment No. 23-02 at a duly noticed public hearing on August 9, 2023, and by a vote of 5-0 recommended the City Council approve a Categorical exemption per CEQA and approve CA 23-02 to amend FVMC Section 21.08.055 for ADU’s; and WHEREAS, the proposed CA 23-02 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code.

SECTION 1
The City Council hereby determines that CA 23-02 is exempt from the California Environmental Quality Act (“CEQA”) under Public Resources Code section 21080.17 [statutory exemption for second unit ordinances]; CEQA Guidelines sections 15282(h) [statutory exemption for second unit ordinances]; 15303 [new construction or small structures] and 15305 [minor alterations to land]. This ordinance is also exempt under CEQA Guidelines section 15061, because this ordinance will not have a significant effect on the environment, because ADUs will largely constitute infill housing which is exempt from CEQA.

SECTION 2
The City Council finds that due notice of the public hearing on September 19, 2023, conducted in the City Council Chambers, 10200 Slater Avenue, Fountain Valley, was given as required by the Fountain Valley Municipal Code, Title 21, and the State of California. Public notice of this hearing and a copy of the Planning Commission agenda were posted at City Hall, Recreation Center and the Fountain Valley Library.

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

1. The proposed amendment ensures and maintains internal consistency with the actions, goals, objectives and policies of the General Plan, and would not create any inconsistencies with Title 21, in the case of a title amendment. The proposed amendment would promote and encourage the development of a variety of housing opportunities to accommodate current and projected households by promoting the construction of additional dwelling units to accommodate Fountain Valley’s share of regional housing needs in accordance with adopted land use policies (General Plan Housing Element Goal #1/Policy 1.1). CA 23-02 would be consistent with California Government Code 65852.2, 65852.22, and Title 21 and would not create any inconsistencies with Title 21, in the case of a title amendment.

2. The proposed amendment would not be detrimental to the public convenience, health, interest, safety or welfare of the city. CA 23-02 would clearly identify standards that must be met per California Government Code 65852.2 and 65852.22 along with development standards to ensure consistency with the Fountain Valley Municipal Code to ensure public convenience, health, interest, safety, and welfare will be met.

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

4. The proposed amendment is internally consistent with other applicable provisions of Title 21. As noted in finding 1 above, CA 23-02 would update FVMC 21.08.055 to provide internal consistency with other applicable provisions of Title 21. There are no other known inconsistencies with the proposed amendment and other applicable provisions of Title 21.

SECTION 4
Section 21.08.055 is hereby amended to read as follows:
“…

21.08.055 Standards for accessory dwelling units.

The following objective standards shall apply to accessory dwelling units:
(a) Accessory Dwelling Units Constructed Within Existing Structures. An accessory dwelling unit: (1) located within a proposed or existing single-family dwelling, including attached garages, storage areas or similar uses, or an accessory structure; or (2) constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit; or (3) located within an existing multi-family structure project shall conform to the following:
(1) Building Permit. Prior to constructing an accessory dwelling unit per this subsection, the applicant must apply for and receive approval of a building permit. The application shall be ministerially considered and approved, without discretionary review or a hearing, notwithstanding Government Code Section 65901 or 65906 or regulation of variances or special use permits, and be in compliance with all requirements imposed by subsection (a). (A) Plan Review. The city shall approve or deny an application to create or serve an accessory dwelling unit under subsection (a) within sixty days from the date the city receives a completed building permit application if there is an existing single-family or multi-family dwelling on the lot. If the application to create or serve an accessory dwelling unit is submitted in conjunction with an application to create a new singlefamily or multifamily dwelling unit on the lot, the city may delay approving or denying the application for the accessory dwelling unit until the city approves or denies the application to create or serve the new single-family or multi-family dwelling, but the application to create or serve the accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the sixty-day time period shall be tolled for the period of the agreed-upon delay. If the city has not approved or denied the completed application within sixty days, the application shall be deemed approved.
(B) Denial. If the permitting agency denies an application for an accessory dwelling submitted pursuant to subdivision (a)(1)(A), the permitting agency shall, within the time

period of subdivision (a)(1)(A), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. The permitting agency shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.
(2) Demolition Permit. A demolition permit for a detached garage that is to be replaced with an accessory dwelling unit shall be reviewed with the application for the accessory dwelling unit and issued at the same time. The permit applicant shall not be required to provide a written notice or posted placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.
(3) Building Code Requirements. Accessory dwelling units shall be constructed on a permanent foundation and shall be built in compliance with the California Building Code. Accessory dwelling units shall comply with local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety.

Nothing in this clause shall be interpreted to prevent the city from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this section. (4) Areas Allowed. Accessory dwelling unit(s) shall be permitted in areas zoned to allow for single-family or multifamily dwelling residential use on lots that include an existing or proposed dwelling. on a residentially zoned parcel with one existing or proposed single-family dwelling and in multi-family projects as noted in subsection (e). (5) Number of Accessory Dwelling Units Allowed.
(A) A parcel with one existing or proposed single-family dwelling shall contain no more than a total of three dwelling units comprised of one single-family dwelling, one accessory dwelling unit, and one junior accessory dwelling unit; or (B) A parcel with one existing or proposed single-family dwelling shall contain no more than a total of four dwelling units if they are comprised of one single-family dwelling, one internal accessory dwelling unit, one junior accessory dwelling unit, and one detached new construction accessory dwelling unit that does not exceed four-foot side and rear yard setbacks with a maximum unit size of eight hundred square feet and height limitation of sixteen feet; and
(C) In multi-family projects as noted in subsection (e). (6) Access. The accessory dwelling unit shall provide independent exterior access from the existing dwelling.

(7) Cannot Be Sold Separately. The accessory dwelling unit may be rented separate from the primary residence but may not be sold or otherwise conveyed separate from the primary residence, unless qualified as a sale or conveyance of accessory dwelling unit separate from primary residence under Government Code Section 65852.26. (8) Passageway. No passageway shall be required in conjunction with the construction of an accessory dwelling unit.
(9) Fire Sprinklers. The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. (10) Utility Connection. Accessory dwelling units shall not be considered by the city to be a new residential use for the purposes of calculating connection fees or capacity charges for utilities, including water and sewer service. The city shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge for an accessory dwelling unit under subsection (a).
(11) Parking. No additional parking spaces shall be required. (12) Minor Expansion. A minor expansion of not more than one hundred fifty square feet beyond the same physical dimensions as the existing accessory structure may be allowed if it is limited to accommodating ingress and egress, there is exterior access from the proposed or existing dwelling, and the side and rear setbacks are sufficient for fire safety. (13) Rental. If the accessory dwelling unit is available for rent, the rental of the accessory dwelling unit shall be for a term longer than thirty days. (14) Covenant. A covenant containing restrictions that the accessory dwelling unit shall not be sold separately from the main dwelling unit, unless qualified as a sale or conveyance of accessory dwelling unit separate from primary residence under Government Code Section 65852.26, and the rental term of the accessory dwelling unit shall not be less than thirty days shall be recorded with the county recorder’s office. Copies of the recorded covenant shall be filed with the building department and the covenant shall run with the land and shall be binding upon any future owner, heirs, or assigns. Accessory dwelling units created after January 1, 2025, shall be owner occupied and a covenant containing this restriction shall also be recorded for accessory dwelling unit’s created after January 1, 2025. (15) Nonconforming Zoning Conditions. An existing structure converted to an accessory dwelling unit under this section shall not require the correction of any legal nonconformity that may exist on the property as a requirement of approval. Illegal nonconformities shall be subject to Section 21.56.050 “Unlawful uses and structures.”
(16) Impact Fee. An impact fee for the development of an accessory dwelling unit may only be imposed for an accessory dwelling unit of seven hundred fifty square feet or larger and shall be charged proportionately in relation to the square footage of the primary dwelling unit. For purposes of this section, “impact fee” has the same meaning as the term “fee” is defined in subdivision (b) of Section 66000 of the state of California Government Code, except that it also includes fees specified in Section 66477 of the state of California Government Code. “Impact

fee” does not include any connection fee or capacity charge charged by a local agency, special district, or water corporation.
(17) Certificate of Occupancy. The city shall not issue a certificate of occupancy for an accessory dwelling unit before a certificate of occupancy has been issued for the primary dwelling. (18) Entrances. Entrances serving accessory dwelling units shall not be constructed facing directly onto, or parallel to, a front or side yard public street on any building elevation and shall be screened as to not be visible from the public right-of-way. Staircases for two-story attached accessory dwelling units shall be internal to the building and shall count toward the total square footage of the accessory dwelling unit. A maximum of two entrances may be provided to an accessory dwelling unit in the form of a front entry door and a door, or sliding glass door, located off the main living room area. No separate entry shall be allowed to an individual bedroom. This section does not apply to any unit subject to Government Code Section 65852.2, subdivision (e).
(19) Garage Conversion. If an applicant for an ADU garage conversion chooses to remove the vehicular access door of a garage that is proposed to be converted to an accessory dwelling unit and replace it with a new solid wall, the new wall shall be built in compliance with the California Building Code and California Energy Code and should match the rest of the existing dwelling unit in terms of exterior color and material and types of windows and doors. (b) New Construction Accessory Dwelling Unit Structures. New accessory dwelling unit structures constructed: (1) attached to a proposed or existing single-family dwelling or multi-family dwelling including attached garages, storage areas or similar uses, or an accessory structure; or (2) detached from a proposed or existing single-family dwelling or multi-family dwelling and located on the same lot as the proposed single-family dwelling or multi-family dwelling, including detached garages, shall conform to the following:
(1) Building Permit. Prior to constructing a new accessory dwelling unit per this subsection, the applicant must apply for and receive approval of a building permit. The application shall be ministerially considered and approved, without discretionary review or a hearing, notwithstanding Government Code Section 65901 or 65906 or regulation of variances or special use permits, and be in compliance with all requirements imposed by subsection (b). (A) Plan Review. The city shall approve or deny an application to create or serve an accessory dwelling unit under subsection (b) within sixty days from the date the city receives a completed building permit application if there is an existing single-family or multi-family dwelling on the lot. If the application to create or serve an accessory dwelling unit is submitted in conjunction with an application to create a new singlefamily or multifamily dwelling unit on the lot, the city may delay approving or denying the application for the accessory dwelling unit until the city approves or denies the application to create or serve the new single-family or multi-family dwelling, but the application to create or serve the accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the sixty-day time period shall be tolled for the period of the agreed-upon delay. If the city has not approved or denied the completed application within sixty days, the application shall be deemed approved.

(B) Denial. If the permitting agency denies an application for an accessory dwelling submitted pursuant to subdivision (b)(1)(A), the permitting agency shall, within the time period of subdivision (b)(1)(A), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. The permitting agency shall not deny an application for a permit to create an accessory dwelling unit due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.
(2) Demolition Permit. A demolition permit for a detached garage that is to be replaced with an accessory dwelling unit shall be reviewed with the application for the accessory dwelling unit and issued at the same time. The permit applicant shall not be required to provide a written notice or posted placard for the demolition of a detached garage that is to be replaced with an accessory dwelling unit, unless the property is located within an architecturally and historically significant historic district.
(3) Building Code Requirements. Accessory dwelling units shall be constructed on a permanent foundation and shall be built in compliance with the California Building Code. Accessory dwelling units shall comply with local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety.

Nothing in this clause shall be interpreted to prevent the city from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this section. (4) Areas Allowed. New accessory dwelling unit(s) shall be permitted in areas zoned to allow for single-family or multifamily dwelling residential use on lots that include an existing or proposed dwelling. on a residentially zoned parcel with one existing or proposed single-family dwelling and in multi-family projects as noted in subsection (e). (5) Number of Accessory Dwelling Units Allowed.
(A) A parcel with one existing or proposed single-family dwelling shall contain no more than a total of three dwelling units comprised of one single-family dwelling, one accessory dwelling unit, and one junior accessory dwelling unit; or (B) A parcel with one existing or proposed single-family dwelling shall contain no more than a total of four dwelling units if they are comprised of one single-family dwelling, one internal accessory dwelling unit, one junior accessory dwelling unit, and one detached new construction accessory dwelling unit that does not exceed four-foot side and rear yard setbacks with a maximum unit size of eight hundred square feet and height limitation of sixteen feet; and
(C) In multi-family projects as noted in subsection (e).

(6) Kitchen, Bathroom, and Entrance. The accessory unit shall contain separate kitchen and bathroom facilities and may have a separate entrance from the main dwelling. The unit shall have a minimum gross floor area to accommodate the development of an efficiency unit as defined in Section 17958.1 of the Health and Safety Code. (7) Cannot Be Sold Separately. The accessory dwelling unit may be rented separate from the primary residence but may not be sold or otherwise conveyed separate from the primary residence, unless qualified as a sale or conveyance of accessory dwelling unit separate from primary residence under Government Code Section 65852.26. (8) Attached and Detached Accessory Dwelling Units Maximum and Minimum Unit Size. (A) The minimum size of a new accessory dwelling unit shall be one hundred fifty two hundred twenty square feet.
(B) The maximum size for a new detached accessory unit shall be:
(i) Eight hundred fifty square feet; or
(ii) One thousand square feet for an accessory dwelling unit that provides more than one bedroom.
(C) The maximum size for a new attached accessory dwelling unit shall be fifty percent of the primary residence. This shall not require an accessory dwelling unit to be less than 800 square feet.
(D) The maximum unit sizes outlined in this section for an attached or detached accessory dwelling unit shall include an existing or proposed garage space if designated for the accessory dwelling unit. An existing or proposed garage space designated for an accessory dwelling unit shall not exceed 200 square feet. (9) Building Separation for Detached Accessory Dwelling Units. A detached accessory dwelling unit shall be separated from the main dwelling a minimum of ten feet if the size of the accessory dwelling unit is over 800 square feet., must be located in the rear yard of the primary dwelling, and must be clearly subordinate by location and size.
(10) Length of Shared Wall for Attached Accessory Dwelling Units. An attached accessory dwelling unit shall share at least one wall with the main dwelling. The shared wall shall be at least five feet in length, or half the width of the accessory dwelling unit, whichever is larger. (11) Setbacks. A setback of no more than four feet from the side and rear lot lines shall be required for a new accessory dwelling unit.
(12) Passageway and Entrances. No passageway shall be required in conjunction with the construction of an accessory dwelling unit. Entrances serving accessory dwelling units shall not be constructed facing directly onto, or parallel to, a front or side yard public street on any building elevation and shall be screened as to not be visible from the public right-of-way.

Staircases for two-story attached accessory dwelling units shall be internal to the building and shall count toward the total square footage of the accessory dwelling unit. A maximum of two entrances may be provided to an accessory dwelling unit in the form of a front entry door and a

door, or sliding glass door, located off the main living room area. No separate entry shall be allowed to an individual bedroom. This section does not apply to any unit created subject to Government Code Section 65852.2, subdivision (e).
(13) Development Standards. Both detached and attached accessory dwelling units shall comply with the residential district general development standards for the property found in Table 2-3 of Section 21.08.040 for each zoning district including in respect to floor area ratio, landscaping, ratio of second story to first story, balconies and decks, and open space requirements. No development standard regarding a zoning clearance or separate zoning review or any other minimum or maximum size for an accessory dwelling unit, size based upon a percentage of the proposed or existing primary dwelling, or limits on lot coverage, floor area ratio, open space, front setbacks, building separation requirements, and minimum lot size, for either attached or detached dwellings, shall apply that would not permit at least an eight hundred square foot, sixteen-foot tall accessory dwelling unit with at least four-foot side and rear setbacks. This section may not preclude a unit built subject to Government Code Section 65852.2, subdivision (e).
(14) Privacy. Windows of an accessory dwelling unit located within five feet of property line shall be clerestory or frosted windows.
(15) Parking. Parking requirements for accessory dwelling units shall be one space per accessory dwelling unit or per bedroom, whichever is less. These spaces may be provided as tandem parking on a driveway. Off-street parking shall be permitted in setback areas on an existing or expanded driveway or through tandem parking on an existing or expanded driveway as allowed by this code, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions.

Front yard setback landscaping requirements of Chapter 21.20 shall apply. No additional driveway shall be provided on the property to provide parking for an accessory dwelling unit unless the driveway is located on a corner lot subject to review and approval by the public works department. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, or converted to an accessory dwelling unit, those off-street parking spaces shall not be required to be replaced. (16) Architectural Compatibility. The accessory dwelling unit must be architecturally compatible with the existing single-family dwelling on the lot and match the existing single-family dwelling unit in terms of exterior color and material, roof material and color, and types of windows and doors. The garage doors of a garage that has been converted to an accessory dwelling unit shall be removed and replaced with a structural wall.
(17) Height. Accessory dwelling units shall be subject to the following height restrictions:

Attached and detached accessory dwelling units shall be subject to the following height restrictions:
(A) A detached accessory dwelling unit on a lot with an existing or proposed singlefamily or multi-family dwelling unit shall be restricted to a single-story structure with a maximum height of sixteen feet.

(B) A detached accessory dwelling unit on a lot with an existing or proposed singlefamily or multi-family dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as defined in Section 21155 of the Public Resources Code, shall be restricted to a single-story structure with a maximum height of eighteen feet. An additional two feet in height (for a maximum of twenty feet) shall be allowed to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit. (C) A detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling shall be restricted to a single-story structure with a maximum height of eighteen feet.
(D) An accessory dwelling unit that is attached to a primary dwelling shall be restricted to a two-story structure with a maximum height of twenty-five feet, or the height limitation of the applicable zone, whichever is lower.
(A) A detached accessory dwelling unit on a lot with an existing single-family or multifamily dwelling unit shall be restricted to a single-story structure with a maximum height of sixteen feet.
(B) A detached accessory dwelling unit on a lot with an existing or proposed singlefamily or multi-family dwelling unit that is within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, as defined in Section 21155 of the Public Resources Code, shall be restricted to a single-story structure with a maximum height of eighteen feet. An additional two feet in height (for a maximum of twenty feet) shall be allowed to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit. (C) A detached accessory dwelling unit on a lot with an existing or proposed multifamily, multistory dwelling shall be restricted to a single-story structure with a maximum height of eighteen feet.
(D) An attached accessory dwelling unit shall be restricted to a two-story structure with a maximum height of twenty-five feet.
(18) Attics and Basements. The following standards shall apply to attics and basements of attached and detached accessory dwelling units:
(A) An accessory dwelling unit habitable attic, compliant with the size and height limitations and definition set forth in the California Building Code, shall count as a story and shall count toward the total living area size of an accessory dwelling unit. Habitable attics, as defined in the California Building Code, shall only be allowed on one-story attached accessory dwelling units that are limited to two stories total. Non-habitable attics shall be allowed in an attached or detached accessory dwelling unit for storage purposes only with no exterior architectural features, windows, etc., from the attic area. (B) An accessory dwelling unit habitable basement, compliant with the size and height limitations and definition set forth in the California Building Code, shall not count as a story and shall count toward the total living area size of an accessory dwelling unit.

(19) Fire Sprinklers. The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence unless otherwise required by the current California Fire Code or Fountain Valley Municipal Code. (20) Utility Connections. An accessory dwelling unit shall not be considered to be a new residential use for purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the accessory dwelling unit was constructed with a new single-family dwelling. The city may require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility. Consistent with California Government Code Section 66013, the connection may be subject to a connection fee or capacity charge that shall be proportionate to the burden of the proposed accessory dwelling unit, based upon either its square feet or the number of its drainage fixture unit (DFU) values, as defined in the Uniform Plumbing Code adopted and published by the International Association of Plumbing and Mechanical Officials, upon the water or sewer system. This fee or charge shall not exceed the reasonable cost of providing this service. (21) Impact Fee. An impact fee for the development of an accessory dwelling unit may only be imposed for an accessory dwelling unit of seven hundred fifty square feet or larger and shall be charged proportionately in relation to the square footage of the primary dwelling unit. For purposes of this section, “impact fee” has the same meaning as the term “fee” is defined in subdivision (b) of Section 66000 of the State of California Government Code, except that it also includes fees specified in Section 66477 of the State of California Government Code. “Impact fee” does not include any connection fee or capacity charge charged by a local agency, special district, or water corporation.
(22) Rental. If the accessory dwelling unit is available for rent, the rental of the accessory dwelling unit shall be for a term longer than thirty days. (23) Covenant. A covenant containing restrictions that the accessory dwelling unit shall not be sold separately from the main dwelling unit, unless qualified as a sale or conveyance of accessory dwelling unit separate from primary residence under Government Code Section 65852.26, and the rental term of the accessory dwelling unit shall not be less than thirty days shall be recorded with the county recorder’s office. Copies of the recorded covenant shall be filed with the building department and the covenant shall run with the land and shall be binding upon any future owner, heirs, or assigns. Accessory dwelling units created after January 1, 2025 shall be owner occupied and a covenant containing this restriction shall also be recorded for accessory dwelling unit’s created after January 1, 2025. (24) Nonconforming Zoning Conditions. An existing structure converted to an accessory dwelling unit under this section shall not require the correction of any legal nonconformity that may exist on the property as a requirement of approval. Illegal nonconformities shall be subject to Section 21.56.050 “Unlawful uses and structures.”
(25) Certificate of Occupancy. The city shall not issue a certificate of occupancy for an accessory dwelling unit before a certificate of occupancy has been issued for the primary dwelling. (c) Notwithstanding subsection (a) or (b), parking requirements for an accessory dwelling unit will not be imposed in any of the following instances and upon verifiable proof provided by the applicant:

(1) The accessory dwelling unit is located within one-half mile walking distance of public transit. For the purposes of this section “public transit” shall include any bus stop. (2) The accessory dwelling unit is located within an architecturally and historically significant historic district.
(3) The accessory dwelling unit is part of the proposed or existing primary residence or an accessory structure.
(4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.
(5) When there is a designated, fixed pick-up or drop-off location for a car share vehicle located within one block of the accessory dwelling unit. (6) When a permit application for an accessory dwelling unit is submitted with a permit application to create a new single-family dwelling or a new multi-family dwelling on the same lot, provided that the accessory dwelling unit or the parcel satisfies any other criteria listed in this subsection (c).
(d) Junior Accessory Dwelling Units. Junior accessory dwelling units constructed within the existing or proposed space of a single-family dwelling shall conform to the following objective standards:
(1) Building Permit. Prior to constructing a junior accessory dwelling unit per this subsection, the applicant must apply for a building permit. The application shall be considered and approved, without discretionary review or a hearing, notwithstanding Government Code Section 65901 or 65906 or regulation of variances or special use permits and be in compliance with all requirements imposed by this subsection (d).
(A) Plan Review. The city shall approve or deny an application to create or serve a junior accessory dwelling unit under this subsection (d) within sixty days from the date the city receives a completed building permit application if there is an existing singlefamily dwelling on the lot. If the application to create or serve a junior accessory dwelling unit is submitted in conjunction with an application to create a new singlefamily or multifamily dwelling unit on the lot, the city may delay approving or denying the application for the junior accessory dwelling unit until the city approves or denies the application to create or serve the new single-family or multi-family dwelling, but the application to create or serve the junior accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the sixty-day time period shall be tolled for the period of the agreed-upon delay. If the city has not approved or denied the completed application within sixty days, the application shall be deemed approved.
(B) Denial. If the permitting agency denies an application for a junior accessory dwelling submitted pursuant to subdivision (d)(1)(A), the permitting agency shall, within the time period of subdivision (d)(1)(A), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. The permitting agency shall not deny an application for a permit to create a junior accessory dwelling unit due to the correction

of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit.
(2) Building Code Requirements. Junior accessory dwelling units shall be constructed on a permanent foundation and shall be built in compliance with the California Building Code. Junior accessory dwelling units shall comply with local building code requirements that apply to detached dwellings, except that the construction of an accessory dwelling unit shall not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code (Title 24 of the California Code of Regulations), unless the building official makes a written finding based on substantial evidence in the record that the construction of the accessory dwelling unit could have a specific, adverse impact on public health and safety. Nothing in this clause shall be interpreted to prevent city from changing the occupancy code of a space that was unhabitable space or was only permitted for nonresidential use and was subsequently converted for residential use pursuant to this section. (3) Areas Allowed. Junior accessory dwelling units shall be permitted on a lot that is allowed to permit any proposed or existing single-family dwelling in the R1 and GH residential zones subject to compliance with this subsection (d).
(4) Number of Junior Accessory Dwelling Units Allowed. Only one junior accessory dwelling unit shall be allowed in any residential zone within one proposed or existing in addition to a single-family dwelling per lot. No junior accessory dwelling unit shall be permitted on any residential lot already containing three or more dwelling units. (5) Owner-Occupied. The main dwelling or the junior accessory dwelling unit shall be owneroccupied. Notwithstanding the foregoing, owner-occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization. (6) Rental. If the junior accessory dwelling unit is available for rent, the rental of the accessory dwelling unit shall be for a term longer than thirty days. (7) Cannot Be Sold Separately. The junior accessory dwelling unit may be rented separate from the primary residence, but may not be sold or otherwise conveyed separate from the primary residence.
(8) Maximum and Minimum Size. The junior accessory dwelling unit is restricted to a maximum of five hundred square feet and a minimum size of one hundred fifty two hundred twenty square feet.
(9) Constructed Within Existing Structures. Junior accessory dwelling units must be constructed within the walls of the proposed or existing single-family residence. Enclosed uses within the residence, such as attached garages, are considered part of the proposed or existing single-family residence.
(10) Entrance. A junior accessory dwelling unit must include a separate entrance from the main entrance to the proposed or existing single-family residence. If a junior accessory dwelling unit shares a bathroom with the primary dwelling, the junior accessory dwelling unit must provide an

interior entry to the primary dwelling’s main living area independent of the exterior entrance to the junior accessory dwelling unit and primary dwelling. (11) Efficiency Kitchen. At a minimum, a junior accessory dwelling unit must include an efficiency kitchen, which shall include a cooking facility with appliances and a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.
(12) Parking. No additional parking shall be required as a condition to grant the building permit. (13) Fire or Life Protection. A junior accessory dwelling unit shall not be considered a separate or new dwelling unit for the purpose of any fire or life protection. (14) Utility Connections. For the purposes of providing service for water, sewer, or power, including a connection fee, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit.
(15) Nonconforming Zoning Conditions. An existing structure converted to accommodate a junior accessory dwelling unit under this section shall not require the correction of any legal nonconformity that may exist on the property as a requirement of approval. Illegal nonconformities shall be subject to Section 21.56.050 “Unlawful uses and structures.” (16) Certificate of Occupancy. The city shall not issue a certificate of occupancy for an accessory dwelling unit before a certificate of occupancy has been issued for the primary dwelling. (17) Covenant. A covenant containing restrictions below shall be recorded with the county recorder’s office and copies of the recorded covenant shall be filed with the building department.
(A) Either the main dwelling or the junior accessory dwelling unit shall be owneroccupied except if the owner is a governmental agency, land trust, or housing organization.
(B) The junior accessory dwelling unit shall not be sold separately from the main dwelling unit.
(C) The junior accessory dwelling unit shall be as approved. No changes to the junior accessory dwelling unit shall occur without approval of a new building permit. (D) The rental term of the accessory dwelling unit shall not be less than thirty days. (E) This covenant shall run with the land and shall be binding upon any future owners, heirs, or assigns.
(F) The restrictions shall be binding upon any successor in ownership of the property and lack of compliance with this provision may result in legal action against the property owner including revocation of any right to maintain a junior accessory dwelling unit on the property.
(18) Garage Conversion. If an applicant for a Junior Accessory Dwelling Unit garage conversion chooses to remove the vehicular access door of a garage that is proposed to be converted to an

accessory dwelling unit and replace it with a new solid wall, the new wall shall be built in compliance with the California Building Code and California Energy Code and should match the rest of the existing dwelling unit in terms of exterior color and material and types of windows and doors.
(e) Special Regulations for Multi-Family and Mixed-Use Accessory Dwelling Units. In addition to the requirements under subsections (a) through (c), accessory dwelling units attached to, or located within existing multi-family dwelling structures, or new construction accessory dwelling units in a multi-family residential or mixed-use zones shall conform to the following:
(1) At least one accessory dwelling unit shall be allowed within an existing multi-family dwelling and up to twenty-five percent of the existing multi-family dwelling units. Multiple accessory dwelling units shall be allowed within the portions of existing multi-family dwelling structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings.
(2) Not more than two accessory dwelling units that are located on a lot that has an existing multi-family dwelling, but are detached from that multi-family dwelling and are subject to a height limit of eighteen feet and four-foot rear yard and side setbacks shall be allowed. An additional two feet in height shall be allowed to accommodate a roof pitch on the accessory dwelling unit that is aligned with the roof pitch of the primary dwelling unit. (f) Accessory Dwelling Units Constructed Before January 1, 2018. This section shall not apply to a building that is deemed substandard pursuant to Section 17920.3 of the Health and Safety Code. (1) Except as provided in subdivision (f)(2), the permitting agency shall not deny a permit for an unpermitted accessory dwelling unit that was constructed before January 1, 2018, due to either of the following:
(A) The accessory dwelling unit is in violation of building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the Health and Safety Code.
(B) The accessory dwelling unit does not comply with Section 65852.2 or any local ordinance regulating accessory dwelling units.
(2) Notwithstanding subdivision (f)(1), the permitting agency may deny a permit for an accessory dwelling unit subject to subdivision (f)(1) if the permitting agency makes a finding that correcting the violation is necessary to protect the health and safety of the public or occupants of the structure.
(g) Definitions. As used in this section, the following terms mean:
(1) “Accessory dwelling unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multi-family dwelling is or will be situated. An accessory dwelling unit also includes the following:

(A) An efficiency unit.
(B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (2) “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.
(3) “Efficiency unit” has the same meaning as defined in Section 17958.1 of the Health and Safety Code.
(4) “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (5) “Local agency” means a city, county, or city and county, whether general law or chartered. (6) “Neighborhood” has the same meaning as set forth in Section 65589.5. (7) “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.
(8) “Objective standards” means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.
(9) “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit.
(10) “Permitting agency” means any entity that is involved in the review of a permit for an accessory dwelling unit or junior accessory dwelling unit and for which there is no substitute, including, but not limited to, applicable planning departments, building departments, utilities, and special districts.
(11) “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
(12) “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (13) “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.
…
SECTION 5
If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council declares that it would have passed this ordinance and each and every section,

subsection, sentence, clause or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would subsequently be declared invalid or unconstitutional.

SECTION 6
The City Clerk shall certify to the adoption of this ordinance and cause it to be published as required by law. This ordinance shall become effective thirty (30) days after the date of its adoption. When this ordinance becomes effective, Urgency Ordinance No. 1596 shall be null and void.

PASSED, APPROVED AND ADOPTED THIS __ DAY OF ______, 2023.

ATTEST:
________________________ ________________________
Rick Miller, City Clerk Kim Constantine, Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
___________________________
Attorneys for the City
City of Fountain Valley

CITY OF FOUNTAIN VALLEY
Planning Department
10200 Slater Avenue, Fountain Valley, CA 92708
714-593-4425 – fountainvalley.org
Notice of Exemption_________________________________________________ TO: Office of Planning and Research FROM: City of Fountain Valley P.O. Box 3044, Room 113 10200 Slater Avenue
Sacramento, CA 95812-3044 Fountain Valley, CA 92708
County Clerk
County of Orange
12 Civic Center Plaza
Santa Ana, CA 92701
Project Title: _________________________________________________________________________ Project Location/Address: ______________________________________________________________ Project Activity/Description: _____________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ Public Agency Approving Project: City of Fountain Valley, Orange County, California Project Applicant: _____________________________________________________________________ Project Applicant’s Address: ___________________________________Phone Number: ____________ _____________________________________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080 (b)(1); 15268);
Declared Emergency (Sec. 21080 (b((3); 15269 (a));
Emergency Project (Sec. 21080 (b)(4); 15269 (b) (c));
Categorical Exemption. State type and section number: _________________________________ Statutory Exemptions. State code number: ___________________________________________ Reasons why project is exempt: __________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Lead Agency Contact Person: ___________________________ Contact Phone: _____________________________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project?: Yes No Signature: ________________________________ Date: _____________ Title: ___________________ Signed by Lead Agency Signed by Applicant
Accessory Dwelling Units - Code Amendment No. 23-02
City of Fountain Valley - Citywide
An amendment to the Fountain Valley Municipal Code
(FVMC) Section 21.08.055 for Accessory Dwelling Units (ADU's).

City of Fountain Valley
10200 Slater Ave., Fountain Valley, CA 92708 (714)593-4425 15303, 15305, 15061
Public Resources Code 21080.17, CEQA 15282(h)
This request is exempt from CEQA under Public Resources Code section 21080.17 {statutory exemption for second unit ordinances]; CEQA Guidelines sections 15282(h) [statutory exemption for second unit ordinances]; 15303 [new construction or small structures] and 15305 [minor alterations to land]. This ordinance is also exempt under CEQA Guidelines section 15061, because this ordinance will not have a significant effect on the environment, because ADUs will largely constitute infill housing which is exempt from CEQA.

Steven Ayers, Principal Planner 714-593-4431

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: September 19, 2023 Members of the City Council
SUBJECT: Appeal of Administrative Wireless Communication Facilities Permit 22-09 and Decision to Not Issue a Stop Work Order
EXECUTIVE SUMMARY:

This is an appeal of two decisions of the Community Development Director to (1) issue Administrative Wireless Communication Facilities Permit 22-09 (“Permit”) for the wireless communications facility located at 8675 Bluebird Avenue in Fountain Valley, California (“Facility”); and (2) the Community Development Director’s decision to not issue a stop work order for construction of the Facility on Building Permit 2022-1705.

BACKGROUND:

The Facility is located on private property, which is owned by Edison Carrier Solutions.

Dish Wireless submitted the application for the Permit to locate its equipment (the Facility) on the existing Edison tower. The Senior Planner reviewed the project, then issued the Permit on September 13, 2022.

The building permit application for Building Permit 2022-1705, to construct the Facility, was filed on October 12, 2022 and issued on February 8, 2023. Inspections for the building permit occurred on May 18, 2023, May 19, 2023, May 26, 2023, and May 31, 2023.

The below photograph shows the Edison tower where the Facility is located. This photograph was taken in May 2023 after Building Permit 2022-1705 was issued and construction had begun.

Appeal of Administrative Wireless Communication Facilities Permit 22-09 and Decision to Not Issue a Stop Work Order
September 19, 2023

On June 10, 2023, Mr. Lyle Scheppele submitted an
appeal of the Community Development Director’s
decision to issue the Permit and to not issue a stop
work order for construction of the Facility. His appeal and follow up letter received on July 11, 2023, are
attached to this report.

At the crux of the appeal, Mr. Scheppele argues that
the Facility should have been permitted by a
conditional use permit instead of an administrative
permit. Because of this, he also contends that a stop
work order for the Facility should be issued to require the cessation of construction of the Facility under
Building Permit 2022-1705.

The appeal went to the Planning Commission on
August 9, 2023. The Planning Commission upheld the
Permit and issued a stop work order for the
construction of the Facility.

Dish has appealed the decision to issue the stop work
order and Mr. Scheppele has appealed the decision to uphold the Permit.

TIME TO APPEAL ISSUANCE OF ADMINISTRATIVE PERMIT:

A decision of the Community Development Director (previously, the Planning Director) to issue or deny an administrative wireless communication facilities permit may be appealed to the Planning Commission within ten (10) calendar days following the date of the decision to issue or deny the permit.
1 The Community Development Director is permitted by the City’s Municipal Code to delegate the responsibilities of the director to department staff under supervision of the director.2 In this case, the decision to issue or not issue the Permit was delegated by the Community Development Director to the Senior Planner. This type of delegation is a common practice for departmental operational efficiency purposes. The Senior Planner issued the Permit on September 13, 2022.

The initial appeal of the decision to issue the Permit was filed on June 10, 2023, by Mr.

Scheppele. It is arguable that the appeal filing is well outside the ten (10) day time frame for appeals of administrative wireless communication facilities permits under the FVMC. Dish has objected to the entirety of these proceedings as untimely.

Mr. Scheppele asserts that because the conditional use permit process was not utilized, and the permit was issued administratively, he had no notice of the decision to issue the 1 F.V.M.C. §§ 21.60.040; 21.28.090, subdvs. (1) (B).
2 F.V.M.C. § 21.52.050, subdvs. (b) (4).

Appeal of Administrative Wireless Communication Facilities Permit 22-09 and Decision to Not Issue a Stop Work Order
September 19, 2023

administrative permit. The time to appeal the Community Development Director’s decision runs from the date that Mr. Scheppele had notice that the Permit was issued for the Facility.

Based on the e-mails and other correspondences submitted by Mr. Scheppele to the City in conjunction with his appeal, it appears he was aware the Permit had been issued by the City prior to May 31, 2023. Specifically:
• On May 17, 2023, he requested a copy of the building permit for the Facility, indicating Dish has already started construction of the Facility; • On May 21, 2023, he states he knows the Permit was issued administratively; • On May 22, 2023, he claimed the City did not follow its own administrative development rules posted on its website and shared an e-mail he sent on May 17, 2023, which states he was told the Facility was approved by an administrative permit in lieu of a conditional use permit and that he also reviewed the administrative wireless communication facilities permit posted on the City’s website; and
• On May 29, 2023, Mr. Scheppele also wrote a letter to the Attorneys for the City stating that he was aware that the Permit was issued administratively, and he requested and received a copy of the Permit.

When considered in the light most favorable to the appellant, however, it is evident that Mr.

Scheppele had personal knowledge that the Permit had been issued for the Facility administratively prior to May 31, 2023 (ten days prior to the date he filed the instant appeal).

Accordingly, when he filed his appeal, his appeal was filed after the prescribed 10 day period specified by the FVMC.

ADMINISTRATIVE WIRELESS COMMUNICATIONS FACILITIES PERMIT 22-09:

F.V.M.C. section 21.28.090, permitting requirements for facilities on private property, distinguishes between three categories of facilities: (1) an administrative permit for “fully assimilated” facilities or facilities collocated on an existing antenna-supporting structure3;(2) a conditional use permit for facilities not collocated on existing structures (i.e. new towers) or substantial changes to existing facilities4; and (3) a non-discretionary permit for eligible facilities requests that qualify for mandatory approval under 47 U.S.C. 1455, subdvs. (a)5.

An eligible facilities request that would qualify for a non-discretionary permit is a, “request for modification of an existing tower or base station that does not substantially change the physical dimensions of such tower or base station, involving: (i) collocation of new transmission equipment; (ii) removal of transmission equipment; or (iii) replacement of transmission equipment.”6 Existing means, “a constructed tower or base station … [that] has been reviewed and approved under the applicable zoning or siting process, or under another 3 F.V.M.C. § 21.28.090, subdvs. (a).
4 F.V.M.C. § 21.28.090, subdvs. (b).
5 F.V.M.C. § 21.28.090, subdvs. (c).
6 F. V.M.C. § 21.28.020.

Appeal of Administrative Wireless Communication Facilities Permit 22-09 and Decision to Not Issue a Stop Work Order
September 19, 2023

State or local regulatory review process.”7 The Facility does not qualify for an eligible facilities request permit because the Edison Tower has never been reviewed or approved by any City or State regulatory review process. The appellant devotes substantial time in his appeal submittals regarding eligible facilities requests and cites numerous laws applicable to eligible facilities requests. The Facility cannot be permitted, nor was permitted, as an eligible facilities request.

The issue is whether the Facility should have been permitted by a conditional use permit instead of an administrative permit. When looking at the text of the F.V.M.C., the term “existing” is used in all three categories of permits. However, the term “existing” in the F.V.M.C. is defined as it pertains to eligible facilities requests. When looking at the two other categories of permits (CUP and administrative), it must be assumed that the term “existing” has a different meaning in those two provisions than as it pertains to eligible facilities requests to avoid redundancy in the Code. The F.V.M.C. also defines “tower” and “base station,” but it does not define “antenna supporting structure,” or “structure.” Based on the interpretation of the F.V.M.C., collocations to existing structures, like the Edison tower, that did not currently have wireless facilities likely qualify for an administrative permit for at least five reasons:

First, new facilities that are attached to an existing structure are considered a collocation under federal regulations.
8 “Collocation… means mounting or installing an antenna facility on a preexisting structure.” “Structure means a pole, tower, base station, or other building, whether or not it has an existing antenna facility, that is used or to be used for the provision of personal wireless service (whether on its own or comingled with other types of services).” (47 C.F.R.

1.6002(g)(1).) Accordingly, the Facility is a collocation on a pre-existing structure.

Second, the electric transmission tower is considered to qualify as an existing antennasupporting structure under the F.V.M.C. because the transmission tower is physically existing and is a commonly used structure to support antennas and antenna equipment. Because the F.V.M.C. defines “tower” and “base station” but, not “antenna supporting structure,” it is reasonable to assume that “antenna supporting structure” has a different meaning that “tower” or “base station.”
Third, a collocation on an existing electric transmission tower does not meet the limited categories of facilities subject to a conditional use permit. A conditional use permit is only required for facilities not collocated on existing structures or substantial changes to existing facilities. Here, the Facility is a collocation on an existing structure and is not a substantial change to an existing facility. A substantial change to an existing facility is a legal phrase of art within the meaning of 47 U.S.C. 1455(a). The FCC’s rules interpreting this statute only applies to certain changes to structures that currently support wireless equipment, or structures built for the sole or primary purpose of supporting wireless equipment. .9
Accordingly, neither type of facility subject to a conditional use permit applies in this case. 7 Id.
8 47 C.F.R. 1.6002(g)(1).
9 47 C.F.R. 1.6100(b)(1), (3) and (9) (defining base station, eligible facilities request, and tower, respectively).

Appeal of Administrative Wireless Communication Facilities Permit 22-09 and Decision to Not Issue a Stop Work Order
September 19, 2023

Fourth, the third permit category for eligible facilities requests already apply to collocations where the support structure currently supports antennas.10 In order to avoid the rule against surplusage and give meaning to all the types of facilities expressly provided in the permit requirements, the most natural reading of “existing antenna-supporting structure” is simply an existing structure capable of supporting antennas. The permit requirement for a structure that currently supports antennas is covered under the non-discretionary permit category for eligible facilities requests.

Fifth, as a matter of policy, applying an administrative permit requirement to a collocation on an existing antenna supporting structure is appropriate in light of the FCC’s mandatory 90- day shot clock applicable to collocations (i.e., new wireless facilities on an existing structure).

A conditional use permit process that involves public hearings with multiple opportunities for appeal is inconsistent with processing an application for a final decision, including all appeals, within 90 days of the City’s receipt of an application.

Accordingly, administrative permits cover new facilities attached to existing support structures that do not currently support other wireless equipment (e.g., the Edison tower). Any facilities attached to an existing structure that currently supports wireless equipment would be subject to a non-discretionary permit (eligible facilities request). The term “existing” is defined in context of the federal regulations under 47 CFR 1.6100 as applied to eligible facilities requests and this is not an eligible facilities request. Moreover, the types of facilities that require a CUP are not what was approved here.

Based on the project analysis conducted by staff during the review stages, and in light of the strong controls placed upon this review process under applicable FCC regulations, the Permit was issued correctly as an administrative permit by the Senior Planner.

STOP WORK ORDER:

As evidenced by Mr. Scheppele’s communications submitted with his appeal letter, the appeal of the Director of Community Development’s decision not to issue a stop work order is timely and appropriate in light of the underlying facts discussed in detail above.

Building Permit 2022-1705 was issued on February 8, 2023, and construction of the Facility was well under way by May 2023 with the City already having conducted numerous inspections of the construction. ”….[I]f a property owner has performed substantial work and incurred substantial liabilities in good faith reliance upon a permit issued by the government, he acquires a vested right to complete construction in accordance with the terms of the permit.” 11 In an e-mail correspondence dated June 9, 2023, Mr. Scheppele indicates that on or about June 8, 2023, the Director of Community Development informed him that the City would not issue a stop work order for the construction of the Facility. This was due to Staff’s understanding that the administrative permit was valid, the appropriate mechanism for 10 47 C.F.R. 1.6100 et seq.
11 Avco Community Developers, Inc. v. South Coast Regional Com. (1976) 17 Cal.3d 785, 791

Appeal of Administrative Wireless Communication Facilities Permit 22-09 and Decision to Not Issue a Stop Work Order
September 19, 2023

considering the proposed project, and because Dish had a vested right to build on Building Permit 2022-1705.

Dish has already started construction of the Facility, implementing the building plans, and expending funds, as evidenced by the above photographs. Because Dish has performed substantial work and incurred substantial liabilities in good faith reliance upon Building Permit 2022-1705, Dish has a vested right to complete construction in accordance with the terms of the building permit.

Because Dish has a vested right to build on the permit, and Dish had already commenced the construction process, neither the Community Development Director nor any City staff could appropriately issue a stop work order as requested.

Mr. Scheppele cites Horwitz v. City of Los Angeles (2004) 124 Cal.App.4th 1344 as grounds for the issuance of the stop work order. However, this case held that building permits can be revoked only if the building permit should not have been issued in the first place. That would not be the case here because the Permit issued for the Facility was properly issued and upheld by the Planning Commission.
500- Feet Separation Requirement
F.V.M.C. section 21.28.050, subdvs. (a), provides that, “[n]o new ground-mounted structure for an antenna shall be located within five hundred feet of an existing ground-mounted structures for an antenna…” The Facility is not a ground-mounted structure. The 500-foot separation requirement does not apply to the Facility.

FISCAL REVIEW:

There is no fiscal impact related to this item.

PUBLIC NOTIFICATION:

This item was agendized in compliance with the Brown Act and noticed as a public hearing.

ENVIRONMENTAL IMPACT REVIEW:

This request is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to the California Code of Regulations, Title 14, Chapter 3, Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, because it has no potential for resulting in a physical change to the environment, directly or indirectly.

ATTORNEY REVIEW:

The Attorneys for the City prepared this report.

Appeal of Administrative Wireless Communication Facilities Permit 22-09 and Decision to Not Issue a Stop Work Order
September 19, 2023

ALTERNATIVES:

Alternative No.1: Deny the appeal of the Planning Commission’s decision to uphold Administrative Wireless Communication Facilities Permit 22-09 for the wireless communications facility located at 8675 Bluebird Avenue in Fountain Valley, California and uphold the Community Development Director’s decision to issue Administrative Wireless Communication Facilities Permit 22-09.

Alternative No. 2: Grant the appeal of the Planning Commission’s decision to uphold Administrative Wireless Communication Facilities Permit 22-09 for the wireless communications facility located at 8675 Bluebird Avenue in Fountain Valley, California, overrule the Community Development Director’s decision to issue Administrative Wireless Communication Facilities Permit 22-09, and set a hearing to revoke Administrative Wireless Communication Facilities Permit 22-09.

Alternative No. 3: Deny the appeal of the Planning Commission’s decision to issue a stop work order for the construction of the wireless communications facility located at 8675 Bluebird Avenue in Fountain Valley, California pursuant to Building Permit 2022-1705, overrule the Director of Community Development’s decision to not issue a stop work order, direct staff to issue a stop work order for the construction of the Facility, and set a hearing to revoke Building Permit 2022-1705.

Alternative No. 4: Grant the appeal of the Planning Commission’s decision to issue a stop work order for the construction of the wireless communications facility located at 8675 Bluebird Avenue in Fountain Valley, California pursuant to Building Permit 2022-1705 and uphold the Community Development Director’s decision to not issue a stop work order.

Prepared by: Alexandra Halfman, Attorneys for the City
Reviewed by: Omar Dadabhoy, Community Development Director/Deputy City Manager
Attachments: 1. Scheppele Appeal filed on June 10, 2023

2. Scheppele Letter to Planning Commission on July 11, 2023

3. Administrative Wireless Communication Facilities Permit 22-09

4. Scheppele Appeal of the Planning Commission’s determination

5. Dish Wireless LLC appeal of the Planning Commission’s determination

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: September 19, 2023 Members of the City Council
SUBJECT: Introduction and First Read of An Ordinance Adding Chapters 4.35 Group Homes and 21.29 Group Homes and Amending Section 21.08.030 Residential Zoning District Land Uses and Permit Requirements to the Fountain Valley Municipal Code
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:

An amendment to the Fountain Valley Municipal Code (“F.V.M.C.”) adding sections 4.35 Group Homes and 21.29 Group Homes and amending section 21.08.030 Residential Zoning District land Uses and Permit Requirements to provide for zoning regulations and permit requirements for group homes in accordance with State law.

DISCUSSION:

The City Council directed staff to prepare draft regulations governing sober living facilities for City Council consideration, based on the regulations adopted by the City of Costa Mesa in 2014. The proposed ordinance is modeled after the City of Costa Mesa’s ordinance.

Over the past several years the City of Fountain Valley, Orange County and State of California have seen a significant increase in the number of single- and multi-family homes being utilized as alcohol and drug recovery facilities for large numbers of individuals (“sober living homes”). The City of Fountain Valley has seen a steady increase in the number of sober living facilities operating in its single-family residences. The purpose of sober living homes is to provide a comfortable living environment for persons with drug or alcohol addictions in which they remain clean and sober and can participate in a recovery program in a residential, community environment, and so that they can reside in the residential neighborhood of their choice.

Ordinance Adding Chapters 4.35 Group Homes and 21.29 Group Homes and Amending Section 21.08.030 Residential Zoning District Land Uses and Permit Requirements September 19, 2023

The rapidly increasing number of sober living homes in the City of Fountain Valley has led to an overconcentration of sober living homes in certain areas of the City’s residential neighborhoods, which is both deleterious to the residential character of these neighborhoods and may also lead to the institutionalization of such neighborhoods. As a result, the City continues to receive comments and concerns from members of the public regarding the lack of local regulations governing these facilities, and staff continues to receive reports regarding neighbors experiencing adverse impacts from these facilities, including, but not limited to, noise, excessive debris/trash, second-hand smoke, loitering, traffic, increased parking demands, and the clustering of group homes near each other. The clustering of these homes can have the effect of altering the residential character of neighborhoods so that it appears more institutional and business-oriented in nature.

There is also a legitimate interest in protecting the vulnerable clients of these facilities, who are persons in alcohol and drug recovery. Without regulations, oversight, and government control, persons are being taken advantage of by business-oriented facility operators, who care more about their profit than the health and wellbeing of the persons residing in their facilities. Persons in recovery are being exploited for their insurance money and financial gain to the disadvantage of the persons residing in the facilities as well as the surrounding neighborhood.

Accordingly, the proposed ordinance seeks to regulate group homes and sober living facilities to curb these evils, providing a safe space for persons to recover from drug and alcohol addiction and preserving the residential character of neighborhoods. The proposed ordinance regulates group homes and sober living homes in accordance with State and Federal law.

State and Federal Law
The California Constitution gives cities broad police powers to preserve the characteristics of residential zones. The Federal Fair Housing Act (“FHAA”) and California Fair Employment Housing Act (“FEHA”) prohibit enforcement of zoning ordinances which on their face discriminate, or have the effect of discriminating, against equal housing opportunities for persons with disabilities.

Persons recovering from alcohol and drug addiction, who are not currently using alcohol or drugs, are considered persons with disabilities under both the FHAA and FEHA. The FHAA and FEHA also require that the City provide reasonable accommodations to its zoning ordinances if such accommodation is necessary to afford a handicapped person an equal opportunity to use and enjoy a dwelling.

The California Lanterman Act requires cities to treat state licensed residential care facilities serving six or fewer as a residential use, meaning the City cannot impose any zoning restrictions on state licensed residential care facilities that it does not impose on other residences.1 A city also cannot impose zoning restrictions, or occupancy limits for unrelated persons who live together that do not also apply to other single-family residences, if the unrelated persons live together as a single housekeeping unit.2 If a group of people living together can meet the definition of a “household” or “family,” there is no limit on the number of people who are permitted to live together, except for Housing Code limits.
1 Health and Safety code 11834.21; 11834.23.
2 City of Santa Barbara v. Adamson, 27 Cal. 3d 123, 134.

Ordinance Adding Chapters 4.35 Group Homes and 21.29 Group Homes and Amending Section 21.08.030 Residential Zoning District Land Uses and Permit Requirements September 19, 2023

Proposed Regulations on Group Homes and Sober Living Facilities The proposed ordinance excludes state licensed care facilities and any group home and/or sober living home that operates as a single housekeeping unit from its zoning restrictions and permit requirements. Facilities that are licensed by the state or households that operate as a single housekeeping unit will not be regulated by this ordinance in compliance with State law.

Group homes with six or fewer residents in the R1, GH, R2, R3, and R4 zones will have to obtain a special use permit. Group homes with seven or more residents are not permitted in the R1 zone.

Group homes with seven or more residents in the GH, R2, R3, and R4 zones must obtain a conditional use permit and an operator’s permit.

Permits will not be issued pursuant to the ordinance unless there is a 650-foot separation between the applicant’s group home and any other sober living home or a state licensed alcoholism or drug abuse recovery or treatment facility. All occupants, other than the house manager, must be actively participating in a legitimate recovery program. A permit will not be issued if the owner/operator or staff person is a sex offender, violent felon, or drug dealer.

Additional requirements include a twenty four hour house manager present at the group home on a day to day basis, transportation for evicted residents to their permanent address, and prohibition of the use of any alcohol or any non-prescription drug at the sober living home or by any resident either on or off site.

In addition, existing group homes must apply for a special use permit within ninety days of the effective date of the ordinance. Group home and sober living home operators may seek relief from any section of the ordinance by requesting a reasonable accommodation pursuant to Fountain Valley Municipal Code section 21.08.060.

Planning Commission Review and Recommendation:

On February 8, 2023, the Planning Commission, at a duly noticed public hearing, heard the proposed Ordinance, and voted 5-0 to recommend the adoption of the Ordinance by the City Council with the guidance that the imposition of greater fines for violators be looked into by staff.

On March 7, 2023, the City Council continued the ordinance and directed the Attorneys for the City to bring it back at a later date after there had been developments in the Costa Mesa litigation.

On July 18, 2023, the Attorneys for the City provided an update on the status of the Costa Mesa litigation as well as the Sober Living and Recovery Task Force and Orange County Grand Jury report regarding sober living homes. The Ordinance is now to the City Council for review and approval as recommended by the Planning Commission.

FISCAL REVIEW:

There is no fiscal impact related to this item.

Ordinance Adding Chapters 4.35 Group Homes and 21.29 Group Homes and Amending Section 21.08.030 Residential Zoning District Land Uses and Permit Requirements September 19, 2023

PUBLIC NOTIFICATION:

This item was agendized in compliance with the Brown Act and noticed as a public hearing.

ENVIRONMENTAL IMPACT REVIEW:

This request is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to the California Code of Regulations, Title 14, Chapter 3, Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, because it has no potential for resulting in a physical change to the environment, directly or indirectly.

ATTORNEY REVIEW:

The Attorneys for the City reviewed and approved this ordinance.

ALTERNATIVES:

Alternative No.1: Approve the introduction-first read of an ordinance adding chapters 4.35 Group Homes and 21.29 Group Homes and amending Section 21.08.030 Residential Zoning District Land Uses and Permit Requirements.

Alternative No. 2: Do not approve the proposed ordinance. and provide direction to staff.

Recommendation: If the City Council desires to regulate group homes in accordance with the City of Costa Mesa and its ordinance, Staff recommends Alternative No.1: Approve the introduction-first read of an ordinance adding chapters 4.35 Group Homes and 21.29 Group Homes and amending Section 21.08.030 Residential Zoning District Land Uses and Permit Requirements.

Prepared by: Alexandra Halfman, Attorneys for the City
Reviewed by: Omar Dadabhoy, Community Development Director Approved by: Maggie Le, City Manager
Attachments: 1. Resolution No. 23-04 with attached Ordinance labeled “Exhibit A”

ORDINANCE NO.______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FOUNTAIN VALLEY ADDING CHAPTERS 4.35 GROUP HOMES
AND 21.29 GROUP HOMES AND AMENDING SECTION

21.08.030 RESIDENTIAL ZONING DISTRICT LAND USES AND

PERMIT REQUIREMENTS TO THE FOUNTAIN VALLEY

MUNICIPAL CODE
WHEREAS, under the California Constitution, Article XI, Section 7, the City has been granted broad police powers to preserve the residential characteristics of its R1, GH, R2, R3, and R4 zones, which powers have been recognized by both the California Supreme Court and United States Supreme Court, the latter of which has stated that, “It is within the power of the legislature to determine that the community should be beautiful as well as healthy, spacious as well as clean, well-balanced as well as carefully patrolled;” WHEREAS, the Federal Fair Housing Act Amendments (“FHAA”) and the California Fair Employment Housing Act (“FEHA”) prohibit enforcement of zoning ordinances which on their face discriminate, or have the effect of discriminating, against equal housing opportunities for persons with disabilities; WHEREAS, a core purpose of the FHAA, FEHA and California’s Lanterman Act is to provide a broader range of housing opportunities to persons with disabilities; to free persons with disabilities, to the extent possible, from institutional style living; and to ensure that persons with disabilities have the opportunity to live in normal residential surroundings and use and enjoy a dwelling in a manner similar to the way a dwelling is enjoyed by others;
WHEREAS, to fulfill this purpose the FHAA and FEHA also require that the City provide reasonable accommodations to its zoning ordinances if such accommodation is necessary to afford a handicapped person an equal opportunity to use and enjoy a dwelling;
WHEREAS, the Lanterman Act fulfills this purpose in part by requiring cities to treat state licensed residential care facilities serving six or fewer as a residential use; WHEREAS, in enacting this Ordinance the City Council of the City of Fountain Valley is attempting to strike a balance between the City’s and residents’ interests of preserving the characteristics of residential neighborhoods and to provide opportunities for persons with disabilities to reside in such neighborhoods that are enjoyed by others; WHEREAS, over the past several years the City, County and State have seen a significant increase in the number of single- and multi-family homes being utilized as alcohol and drug recovery facilities for large numbers of individuals (hereafter, “sober living homes”);

WHEREAS, the increase appears to be driven in part by the Substance Abuse and Crime Prevention Act of 2000 (hereafter, “the Act”) adopted by California voters which provides that specified first-time drug and alcohol offenders are to be afforded the opportunity to receive substance abuse treatment rather than incarceration; WHEREAS, the Affordable Care Act has significantly expanded the availability of health care coverage for substance abuse treatment;
WHEREAS, the City of Fountain Valley has seen a sharp increase in the number of sober living homes, which has generated secondary impacts including, but not limited to neighborhood parking shortfalls, overcrowding, inordinate amounts of second-hand smoke, and noise; and the clustering of sober living facilities in close proximity to each other creating near neighborhoods of sober living homes; WHEREAS, over the last decade the number of sober living homes in the City of Fountain Valley is rapidly increasing, leading to an overconcentration of sober living homes in certain of the City’s residential neighborhoods, which is both deleterious to the residential character of these neighborhoods and may also lead to the institutionalization of such neighborhoods;
WHEREAS, the purpose of sober living homes is to provide a comfortable living environment for persons with drug or alcohol addictions in which they remain clean and sober and can participate in a recovery program in a residential, community environment, and so that they have the opportunity to reside in the residential neighborhood of their choice;
WHEREAS, recovering alcoholics and drug addicts, who are not currently using alcohol or drugs, are considered persons with disabilities under both the FHAA and FEHA;
WHEREAS, based on the City’s experience it has become clear that at least some operators of sober living homes are driven more by a motivation to profit rather than to provide a comfortable living environment in which recovering addicts have a realistic potential of recovery, or to provide a living environment which remotely resembles the manner in which the non-disabled use and enjoy a dwelling; WHEREAS, persons with drug and/or alcohol addictions are an extremely vulnerable population and City desires to protect these persons from, based on City’s experience, sober living home operators, who are interested solely in profit and have been exploiting persons in recovery for insurance money and financial gain to the disadvantage of the person as well as the surrounding neighborhood;
WHEREAS, establishing distance requirements for sober living homes is reasonable and non-discriminatory and not only helps preserve the residential character of the R1, GH, R2, R3, and R4 zones; as well as the planned development residential neighborhoods, but also furthers the interest of ensuring that persons with disabilities are

not living in overcrowded environments that are counterproductive to their well-being and recovery;
WHEREAS, sober living homes do not function as a single housekeeping unit for the following reasons: (1) they house extremely transient populations (programs are generally about 90 days and a 2008 UCLA study found that 65-70% of recovering addicts don’t finish their recovery programs); (2) the residents generally have no established ties to each other when they move in and typically do not mingle with other neighbors; (3) neighbors generally do not know who or who does not reside in the home; (4) the residents have little to no say about who lives or doesn’t live in the home; (5) the residents do not generally share expenses; (6) the residents are often responsible for their own food, laundry and phone; (7) when residents disobey house rules they are often just kicked out of the house; (8) the residents generally do not share the same acquaintances; and (9) residents often pay significantly above market rate rents; WHEREAS, because of their extremely transient populations, above-normal numbers of individuals/adults residing in a single dwelling and the lack of regulations, sober living facilities present problems not typically associated with more traditional residential uses, including but not limited to: the housing of large numbers of unrelated adults who may or may not be supervised; disproportionate numbers of cars associated with a single housing unit, which causes disproportionate traffic and utilization of on-street parking; excessive noise and outdoor smoking, which interferes with the use and enjoyment of neighbors’ use of their property; neighbors who have little to no idea who does and does not reside in the home; little to no participation in community activities that form and strengthen neighborhood cohesion; a history of opening facilities in complete disregard of the Fountain Valley Municipal Code and with little regard for impacts to the neighborhood; disproportional impacts from the average dwelling unit to nearly all public services including sewer, water, parks, libraries, transportation infrastructure, fire and police; a history of congregating in the same general area; and the potential influx of individuals with a criminal record;
WHEREAS, a variable separation requirement will still allow for a reasonable market for the purchase and operation of sober living homes within the City and still result in preferential treatment for sober living homes in that individuals in a similar living situation (i.e., in boardinghouse-style residences) have fewer housing opportunities than persons with disabilities;
WHEREAS, housing inordinately large numbers of unrelated adults in a single dwelling or congregating sober living homes in close proximity to each other does not provide persons with disabilities with an opportunity to “live in normal residential surroundings,” but rather places them into living environments bearing more in common with the types of institutional/campus/dormitory living that the FEHA and FHAA were designed to provide relief from for persons with disabilities, and which no reasonable person could contend provides a life in a normal residential surrounding;

WHEREAS, notwithstanding the above, the City Council recognizes that while not in character with residential neighborhoods, when operated responsibly, group homes, including sober living homes, provide a societal benefit by providing persons with disabilities the opportunity to live in residential neighborhoods, as well as providing recovery programs for individuals attempting to overcome their drug and alcohol addictions, and that therefore providing greater access to residential zones to group homes, including sober living homes, than to boardinghouses or any other type of group living provides a benefit to the City and its residents; WHEREAS, without some regulation there is no way of ensuring that the individuals entering into a group home are persons with disabilities and entitled to reasonable accommodation under local and state law; that a group home is operated professionally to minimize impacts to the surrounding neighborhood; and that the secondary impacts from over concentration of both group homes in a neighborhood and large numbers of unrelated adults residing in a single facility in an individual home are lessened;
WHEREAS, in addition to group homes locating in residential neighborhoods other state-licensed residential care facilities for six or fewer persons who are mentally disabled or otherwise disabled or supervised, are also taking up residence in these neighborhoods; WHEREAS, the purpose of group homes for persons with disabilities is to provide persons with disabilities an equal opportunity to comfortably reside in the residential neighborhood of their choice; and
WHEREAS, this Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA guidelines, and the City’s environmental procedures, and has been found to be exempt pursuant to Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment.

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

Section 1:

Fountain Valley Municipal Code Chapter 4.35 “Group Homes” is hereby added to read as follows:

4.35.010 Definitions.

The following definitions shall apply to this Chapter. To the extent these definitions conflict with any other provision in the Municipal Code, these definitions shall control:
“Alcoholism or drug abuse recovery or treatment facility” means adult alcoholism or drug abuse recovery or treatment facilities that are licensed pursuant to Section

11834.01 of the California Health & Safety Code. Alcoholism or drug abuse recovery or treatment facilities are a subset of residential care facilities. “Boardinghouse” means a dwelling unit, other than a hotel, wherein rooms are rented under two (2) or more separate written or oral rental agreements, leases or subleases or combination thereof, whether or not the owner, agent or rental manager resides within the dwelling unit. Boardinghouse, small means two (2) or fewer rooms being rented to a maximum of three (3) occupants per dwelling unit. Boardinghouse, large means three (3) to six (6) rooms being rented to a maximum of six (6) occupants per dwelling unit. Boardinghouses renting two (2) or fewer rooms and having more than three (3) occupants or renting more than six (6) rooms and/or having more than six (6) occupants, per dwelling unit are prohibited.
“Disabled” shall have the same meaning as handicapped.
“Fair housing laws” means the Federal Fair Housing Act, the Americans with Disabilities Act, and the California Fair Employment and Housing Act, as each statute may be amended from time to time, and each statute’s implementing regulations. “Group home” means a facility that is being used as a supportive living environment for persons who are considered disabled under state or federal law. A group home operated by a single operator or service provider (whether licensed or unlicensed) constitutes a single facility, whether the facility occupies one (1) or more dwelling units.

Group homes shall not include the following: (1) residential care facilities; (2) any group home that operates as a single housekeeping unit.
“Handicapped” means, as more specifically defined under the fair housing laws, a person who has a physical or mental impairment that limits one (1) or more major life activities, a person who is regarded as having that type of impairment, or a person who has a record of that type of impairment, not including current, illegal use of a controlled substance.
“Household” means all the people occupying a dwelling unit and includes people who live in different units governed by the same operator. “Integral facilities” means any combination of two (2) or more group homes which may or may not be located on the same or contiguous parcels of land, that are under the control and management of the same owner, operator, management company or licensee or any affiliate of any of them, and are integrated components of one operation shall be referred to as integral facilities and shall be considered one facility for purposes of applying federal, state and local laws to its operation. Examples of such integral facilities include, but are not limited to, the provision of housing in one facility and recovery programming, treatment, meals, or any other service or services to program participants in another facility or facilities or by assigning staff or a consultant or consultants to provide services to the same program participants in more than one licensed or unlicensed facility.

“Integral uses” means any two or more residential care programs commonly administered by the same owner, operator, management company or licensee, or any affiliate of any of them, in a manner in which participants in two or more care programs participate simultaneously in any care or recovery activity, or activities so commonly administered. Any such integral use shall be considered one use for purposes of applying federal, state and local laws to its operation.
“Operator” means a company, business or individual who provides residential services, i.e., the placement of individuals in a residence, setting of house rules, and governing behavior of the residents as residents. Operator does not include a property owner or property manager that exclusively handles real estate contracting, property management and leasing of the property and that does not otherwise meet the definition of operator.
“Planning Department” means the Planning Department of the City of Fountain Valley.
“Property” means any single development lot that has been subdivided bearing its own assessor’s parcel number or with an approved subdivision map or condominium map.
‘Referral facility” means a residential care facility or a group home where one or more person’s residency in the facility is pursuant to a court order or directive from an agency in the criminal justice system.
“Residential care facility” means a residential facility licensed by the state where care, services, or treatment is provided to persons living in a supportive community residential setting. Residential care facilities include but may not be limited to the following: intermediate care facilities for the developmentally disabled (Health & Saf.

Code §§ 1267.8, 1267.9); community care facilities (Health & Saf. Code §§ 1500 et seq.); residential care facilities for the elderly (Health & Saf. Code §§ 1569 et seq.); residential care facilities for the chronically ill (22 C.C.R. § 87801(a)(5); Health & Saf. § 1568.02); alcoholism and drug abuse facilities (Health & Saf. Code §§ 11834.02-11834.30); pediatric day health and respite care facilities (Health & Saf. Code §§ 1760 et seq.); residential health care facilities, including congregate living health facilities (Health & Saf.

Code §§ 1265 – 1271.1, 1250(i), 1250(e), (h)); family care home, foster home, group home for the mentally disordered or otherwise handicapped persons or dependent and neglected children (Wel. & Inst. Code §§ 5115-5120).
“Single housekeeping unit” means that the occupants of a dwelling unit have established ties and familiarity with each other, jointly use common areas, interact with each other, share meals, household activities, and expenses and responsibilities; membership in the single housekeeping unit is fairly stable as opposed to transient, members have some control over who becomes a member of the household, and the residential activities of the household are conducted on a nonprofit basis. There is a rebuttable presumption that integral facilities do not constitute single housekeeping units.

Additional indicia that a household is not operating as a single housekeeping unit include but are not limited to: the occupants do not share a lease agreement or ownership of the property; members of the household have separate, private entrances from other members; members of the household have locks on their bedroom doors; members of the household have separate food storage facilities, such as separate refrigerators. “Sober living home” means a group home for persons who are recovering from a drug and/or alcohol addiction and who are considered disabled under state or federal law.

Sober living homes shall not include the following: (1) residential care facilities; (2) any sober living home that operates as a single housekeeping unit.

4.35.020 Zoning requirements.

In addition to the requirements of this article, all group homes subject to this article shall comply with the requirements set forth in Chapter 21.29 of Title 21 of this Code.

4.35.025 Operator’s permit required.

It is unlawful for any person to operate, or to permit any person to operate, a group home on any property located within the GH, R2, R3, and R4 zone, without a valid permit issued for that group home pursuant to the provisions of this article.

4.35.030 Exceptions.

The requirements of this article shall not apply to:
(a) A group home that has six (6) or fewer occupants, not counting a house manager, and that is in compliance with the applicable provisions of Chapter 21.29; or (b) A state licensed alcoholism or drug abuse recovery or treatment facility; or (c) A state licensed residential care facility.

4.35.035 Requirements for issuance of operator’s permit. (a) The owner/operator shall submit an application to the director of the Planning Department, or his or her designee that provides the following information:
(1) The name, address, phone number and driver’s license number of the owner/operator;
(2) If the applicant and/or operator is a partnership, corporation, firm or association, then the applicant/operator shall provide the additional names and addresses as follows and such persons shall also sign the application:
i. Every general partner of the partnership;
ii. Every owner with a controlling interest in the corporation; and

iii. The person designated by the officers of a corporation as set forth in a resolution of the corporation that is to be designated as the permit holder. (3) The license and permit history of the applicant(s), including whether such applicant(s), in previously operating a similar use in this or another city, county or state under license and/or permit, has had such license and/or permit revoked or suspended, and the reason therefor;
(4) The name, address, phone number and driver’s license number of the house manager;
(5) A copy of the group home rules and regulations;
(6) Written intake procedures;
(7) The relapse policy;
(8) An affirmation by the owner/operator that only residents (other than the house manager) who are disabled as defined by state and federal law shall reside at the group home;
(9) Blank copies of all forms that all residents and potential residents are required to complete; and
(10) A fee for the cost of processing of the application as set by resolution of the city council.
(b) Requirements for operation of group homes.
(1) The group home has a house manager who resides at the group home or any multiple of persons acting as a house manager who are present at the group home on a twenty-four (24) hour basis and who are responsible for the day-to-day operation of the group home.
(2) All garage and driveway spaces associated with the dwelling unit shall, at all times, be available for the parking of vehicles. Residents and the house manager may each only store or park a single vehicle at the dwelling unit or on any street within five hundred (500) feet of the dwelling unit. The vehicle must be operable and currently used as a primary form of transportation for a resident of the group home. (3) Occupants must not require, and operators must not provide, “care and supervision” as those terms are defined by Health and Safety Code section 1503.5 and section 80001(c)(3) of Title 22, California Code of Regulations. (4) Integral group home facilities are not permitted. Applicants shall declare, under penalty of perjury, that the group home does not operate as an integral use/facility.

(5) If the group home operator is not the property owner, written approval from the property owner to operate a group home at the property. (6) At least forty-eight (48) hours prior to eviction from or involuntary termination of residency in a group home, the operator thereof shall:
i. Notify the person designated as the occupant’s emergency contact or contact of record that the occupant will no longer be a resident at the home; ii. Contact the Orange County Health Care Agency OC Links Referral Line or other entity designated by the City to determine the services available to the occupant, including, but not limited to, alcohol and drug inpatient and outpatient treatment; iii. Notify the Fountain Valley Police Department that an occupant is no longer a resident at the home, determine the services available therefrom; and iv. Provide the information obtained from paragraphs ii and iii of this subsection (b)(6) and any other treatment provider or service to the occupant prior to his or her release on a form provided by the city and obtain the occupant’s signed acknowledgement thereon;
v. Provided, however, that if the occupant’s behavior results in immediate termination of residency pursuant to rules approved by the city as part of the conditional use permit for that facility, the operator shall comply with paragraphs i though iv of this subsection (b)(6) as soon as possible.
(7) Prior to an occupant’s eviction from or involuntary termination of residency in a group home, the operator thereof shall also:
i. Make available to the occupant transportation to the address listed on the occupant’s driver license, state issued identification card, or the permanent address identified in the occupant’s application or referral to the group home; ii. Provided, however, that should the occupant decline transportation to his or her permanent address or otherwise has no permanent address, then the operator shall make available to the occupant transportation to another group home or residential care facility that has agreed to accept the occupant.
(8) The group home operator shall maintain records for a period of one year following eviction from or involuntary termination of residency of an occupant that document compliance with subsections (a)(6) and (a)(7) of this section; provided, however, that nothing herein shall require an operator of a group home to violate any provision of state or federal law regarding confidentiality of health care information. The group home operator may not satisfy the obligations set forth in subsection (a)(7) by providing remuneration to the occupant for the cost of transportation.

(9) All drivers of vehicles picking up or dropping off persons at a group home shall comply with all applicable provisions of this Code and the Vehicle Code, including, but not limited to, those provisions regulating licensure and parking, standing and stopping.
(10) The property must be in full compliance with all building codes, municipal code and zoning.
(11) In addition to the regulations outlined above, the following shall also apply to sober living homes:
i. All occupants, other than the house manager, must be actively participating in legitimate recovery programs, including, but not limited to, Alcoholics Anonymous or Narcotics Anonymous and the sober living home must maintain current records of meeting attendance. Under the sober living home’s rules and regulations, refusal to actively participate in such a program shall be cause for eviction. ii. The sober living home’s rules and regulations must prohibit the use of any alcohol or any non-prescription drugs at the sober living home or by any recovering addict either on or off site. The sober living home must also have a written policy regarding the possession, use and storage of prescription medications. The facility cannot dispense medications but must make them available to the residents. The possession or use of prescription medications is prohibited except for the person to whom they are prescribed, and in the amounts/dosages prescribed. These rules and regulations shall be posted on site in a common area inside the dwelling unit. Any violation of this rule must be cause for eviction under the sober living home’s rules for residency and the violator cannot be re-admitted for at least ninety (90) days. Any second violation of this rule shall result in permanent eviction. Alternatively, the sober living home must have provisions in place to remove the violator from contact with the other residents until the violation is resolved. iii. The number of occupants subject to the sex offender registration requirements of Penal Code section 290 does not exceed the limit set forth in Penal Code section 3003.5 and does not violate the distance provisions set forth in Penal Code section 3003. iv. The sober living home shall have a written visitation policy that shall preclude any visitors who are under the influence of any drug or alcohol. v. The sober living home shall have a good neighbor policy that shall direct occupants to be considerate of neighbors, including refraining from engaging in excessively loud, profane or obnoxious behavior that would unduly interfere with a neighbor’s use and enjoyment of their dwelling unit. The good neighbor policy shall establish a written protocol for the house manager/operator to follow when a neighbor complaint is received.

vi. The sober living home shall not provide any of the following services as they are defined by section 10501(a)(6) of Title 9, California Code of Regulations:
detoxification; educational counseling; individual or group counseling sessions; and treatment or recovery planning.
(c) An applicant may seek relief from the strict application of this section by submitting an application to the director of the Planning Department setting forth specific reasons as to why accommodation over and above this section is necessary under state and federal laws, pursuant to Section 21.08.060 of Chapter 21.08 of Title 21 of this Code. (d) The operator’s permit shall be issued by the director of the Planning Department if the applicant is in compliance, or, where applicable, has agreed to comply, with the requirements of subsections (a) and (b) above. (e) In addition to denying an application for failing to comply, or failing to agree to comply, with subsections (a) and/or (b) of this section, an operator’s permit shall also be denied, and if already issued shall be revoked upon a hearing by the director of the Planning Department, under any of the following circumstances:
(1) Any owner/operator or staff person has provided materially false or misleading information on the application or omitted any pertinent information. (2) Any owner/operator or staff person has an employment history in which he or she was terminated during the past two years because of physical assault, sexual harassment, embezzlement or theft; falsifying a drug test; or selling or furnishing illegal drugs or alcohol.
(3) Any owner/operator or staff person has been convicted of or pleaded nolo contendere, within the last seven (7) to ten (10) years, to any of the following offenses:
i. Any sex offense for which the person is required to register as a sex offender under California Penal Code section 290 (last ten (10) years); ii. Arson offenses—Violations of Penal Code Sections 451—455 (last seven (7) years); or
iii. Violent felonies, as defined in Penal Code section 667.5, which involve doing bodily harm to another person (last ten (10) years).
iv. The unlawful sale or furnishing of any controlled substances (last seven (7) years).
(4) Any owner/operator or staff person is on parole or formal probation supervision on the date of the submittal of the application or at any time thereafter.

(5) The owner/operator accepts residents, other than a house manager, who are not disabled or handicapped as defined by the FHAA and FEHA. (6) An operator’s permit for a sober living home shall also be denied, and if already issued shall be revoked upon a hearing by the director of the Planning Department, under any of the following additional circumstances:
i. The owner/operator of a sober living home fails to immediately take measures to remove any resident who uses alcohol or illegally uses prescription or non-prescription drugs, or who is not actively participating in a legitimate recovery program from contact with all other sober residents.
ii. For any other significant and/or repeated violations of this section and/or any other applicable laws and/or regulations.

4.35.040 Transfer of operator’s permit.
(a) An operator’s permit shall not be valid for a location other than the property for which it is issued, unless and until the transfer of the permit is approved by the Community Development Director pursuant to the requirements of section 4.35.035. (b) An operator’s permit may not be transferred to any other person or entity. No operator’s permit issued pursuant to this article shall be transferred or assigned or authorize any person or entity other than the person or entity named in the permit to operate the group home named therein.

4.35.045 Revocation of operator’s permit.

An operator’s permit may be revoked upon a hearing by the Community Development Director pursuant to section 4.35.035 for failing to comply with the terms of the permit and/or for failing to comply with the applicable provisions of section 4.35.035.

4.35.050. Reapplication after denial or revocation.
(a) An applicant for an operator’s permit whose application for such an operator’s permit has been denied may not reapply for such an operator’s permit for a period of six months from the date such notice of denial was issued.
(b) A holder of an operator’s permit that has been cancelled, revoked, or otherwise invalidated may not reapply for an operator’s or a user’s permit for a period of six months from the date that such revocation, cancellation, or invalidation became final.

4.35.055 Compliance.

A group home that is subject to the provisions of this Chapter that is in existence as of the effective date of this ordinance shall have one hundred twenty (120) days to comply with the provisions of this Chapter.

Section 2:

Fountain Valley Municipal Code Chapter 21.29 Group Homes is hereby added to read as follows:

21.29.010 Purpose.

This chapter is intended to preserve the residential character of single-family residential neighborhoods and to further the purposes of the FEHA, the FHAA and the Lanterman Act by, among other things: (1) ensuring that group homes are actually entitled to the special accommodation and/or additional accommodation provided under the Fountain Valley Municipal Code and not simply skirting the city’s boarding house regulations; (2) limiting the secondary impacts of group homes by reducing noise and traffic, preserving safety and providing adequate on street parking; (3) providing an accommodation for persons with disabilities that is reasonable and actually bears some resemblance to the opportunities afforded non-handicapped individuals to use and enjoy a dwelling unit in a single-family neighborhood; and (4) to provide comfortable living environments that will enhance the opportunity for persons with disabilities and for recovering addicts to be successful in their programs.

21.29.020 Definitions
The definitions in Chapter 4.35 shall apply to this Chapter. To the extent those definitions conflict with any other provision in the Municipal Code, the definitions in Chapter 4.35 shall control for purposes of this Chapter.

21.29.030 Special use permit required for R1 zone.
(a) A group home that may otherwise be considered an unpermitted use may locate in an R1 zone with a special use permit provided:
(1) An application for a group home is submitted to the Community Development Director, or his or her designee, by the owner/operator of the group home. The application shall provide the following:
i. The name, address, phone number and driver’s license number of the owner/operator;
ii. If the applicant and/or operator is a partnership, corporation, firm or association, then the applicant/operator shall provide the additional names and addresses as follows and such persons shall also sign the application:
a. Every general partner of the partnership,
b. Every owner with a controlling interest in the corporation, c. The person designated by the officers of a corporation as set forth in a resolution of the corporation that is to be designated as the permit holder;

iii. The license and permit history of the applicant(s), including whether such applicant(s), in previously operating a similar use in this or another city, county or state under license and/or permit, has had such license and/or permit revoked or suspended, and the reason therefor;
iv. The name, address, phone number and driver’s license number of the house manager;
v. A copy of the group home rules and regulations;
vi. Written intake procedures;
vii. The relapse policy;
viii. An affirmation by the owner/operator that only residents (other than the house manager) who are disabled as defined by state and federal law shall reside at the group home;
ix. Blank copies of all forms that all residents and potential residents are required to complete; and
x. A fee for the cost of processing of the application as set by resolution of the city council.
(b) No person shall open a group home or begin employment with a group home until this information has been provided and such persons shall be responsible for updating any of this information to keep it current.
(2) The group home has six (6) or fewer occupants, not counting a house manager, but in no event shall have more than seven (7) occupants. If the dwelling unit has an accessory dwelling unit (ADU), occupants of both units will be combined to determine whether or not the limit of six (6) occupants has been exceeded. (3) The group home shall not be located in an ADU unless the primary dwelling unit is used for the same purpose.
(4) The group home has a house manager who resides at the group home or any multiple of persons acting as a house manager who are present at the group home on a twenty-four hour basis and who are responsible for the day-to-day operation of the group home.
(5) All garage and driveway spaces associated with the dwelling unit shall, at all times, be available for the parking of vehicles. Residents and the house manager may each only store or park a single vehicle at the dwelling unit or on any street within five hundred feet of the dwelling unit. The vehicle must be operable and currently used as a primary form of transportation for a resident of the group home.

(6) Occupants must not require, and operators must not provide, “care and supervision” as those terms are defined by Health and Safety Code section 1503.5 and section 80001(c)(3) of Title 22, California Code of Regulations. (7) Integral group home facilities are not permitted. Applicants shall declare, under penalty of perjury, that the group home does not operate as an integral use/facility. (8) If the group home operator is not the property owner, the application must include written approval from the property owner to operate a group home at the property. (9) The property must be in full compliance with all building codes, municipal codes, and zoning.
(10) At least forty-eight hours prior to an occupant’s eviction from or involuntary termination of residency in a group home, the operator thereof shall:
i. Notify the person designated as the occupant’s emergency contact or contact of record that the occupant will no longer be a resident at the home; ii. Contact the Orange County Health Care Agency OC Links Referral Line and/or another entity designated by the City to determine the services available to the occupant, including, but not limited to, alcohol and drug inpatient and outpatient treatment;
iii. Notify the Fountain Valley Police Department that an occupant is no longer a resident at the home, and determine the services available therefrom; iv. Provide the information obtained from paragraphs ii and iii of this subsection (a)(10) and any other treatment provider or service to the occupant prior to his or her release on a form provided by the City and obtain the occupant’s signed acknowledgement thereon;
v. Provided, however, that if the occupant’s behavior results in immediate termination of residency pursuant to rules approved by the City of Fountain Valley as part of the special use permit for that facility, the operator shall comply with paragraphs i through iv of this subsection (a)(10) as soon as possible. (11) Prior to an occupant’s eviction from or involuntary termination of residency in a group home, the operator thereof shall also:
i. Make available to the occupant transportation to the address listed on the occupant’s driver license, state-issued identification card, or the permanent address identified in the occupant’s application or referral to the group home;

ii. Provided, however, that should the occupant decline transportation to his or her permanent address, or otherwise has no permanent address, then the operator shall make available to the occupant transportation to another group home or residential care facility that has agreed to accept the occupant.
(12) The group home operator shall maintain records for a period of one year following eviction from, or involuntary termination of, residency of an occupant that document compliance with subsections (a)(10) and (a)(11) of this section; provided, however, that nothing herein shall require an operator of a group home to violate any provision of state or federal law regarding confidentiality of health care information. The group home operator may not satisfy the obligations set forth in subsection (a)(11) of this section by providing remuneration to the occupant for the cost of transportation. (13) All drivers of vehicles picking up or dropping off persons at a group home shall comply with all applicable provisions of this Code and the Vehicle Code, including, but not limited to, those provisions regulating licensure and parking, standing, and stopping.
(14) In addition to the regulations outlined above, the following shall also apply to sober living homes:
i. The sober living home is not located within six hundred fifty (650) feet, as measured from the closest property lines, of any other sober living home or a state licensed alcoholism or drug abuse recovery or treatment facility. ii. All occupants, other than the house manager, must be actively participating in legitimate recovery programs, including, but not limited to, Alcoholics Anonymous or Narcotics Anonymous and the sober living home must maintain current records of meeting attendance. Under the sober living home’s rules and regulations, refusal to actively participate in such a program shall be cause for eviction. iii. The sober living home’s rules and regulations must prohibit the use of any alcohol or any non-prescription drugs at the sober living home, or by any recovering addict, either on or off site. The sober living home must also have a written policy regarding the possession, use, and storage of prescription medications. The facility cannot dispense medications but must make them available to the residents. The possession or use of prescription medications is prohibited except for the person to whom they are prescribed, and in the amounts/dosages prescribed. These rules and regulations shall be posted on site in a common area inside the dwelling unit. Any violation of this rule must be cause for eviction under the sober living home’s rules for residency and the violator cannot be re-admitted for at least ninety days. Any second violation of this rule shall result in permanent eviction. Alternatively, the sober living home must have provisions in place to remove the violator from contact with the other residents until the violation is resolved.

iv. The number of occupants subject to the sex offender registration requirements of Penal Code section 290 does not exceed the limit set forth in Penal Code section 3003.5 and does not violate the distance provisions set forth in Penal Code section 3003.
v. The sober living home shall have a written visitation policy that shall preclude any visitors who are under the influence of any drug or alcohol. vi. The sober living home shall have a good neighbor policy that shall direct occupants to be considerate of neighbors, including refraining from engaging in excessively loud, profane, or obnoxious behavior that would unduly interfere with a neighbor’s use and enjoyment of their dwelling unit. The good neighbor policy shall establish a written protocol for the house manager/operator to follow when a neighbor complaint is received.
vii. The sober living home shall not provide any of the following services as they are defined by section 10501(a)(6) of Title 9, California Code of Regulations:
detoxification; educational counseling; individual or group counseling sessions; and treatment or recovery planning.
(15) An applicant may seek relief from the strict application of this section by submitting an application to the Community Development Director setting forth specific reasons as to why accommodation over and above this section is necessary under state and federal laws, pursuant to Section 21.08.060 of Chapter 21.08 of Title 21 of this Code. (b) The special use permit shall be issued by the Community Development Director as a ministerial matter if the applicant is in compliance, or has agreed to comply, with subsections (a)(1) through (a)(14) of this section. At least ten (10) days prior to issuing a special use permit, the Community Development Director, or his or her designee, shall cause written notice to be mailed to the owner of record and occupants of all properties within five hundred feet of the location of the group home. Prior to issuance of the special use permit, the Community Development Director, or his or her designee, shall hold a public hearing for the purpose of receiving information regarding compliance with the applicable provisions of subsections (a) and (b) of this section. The issuance of the special use permit shall be denied upon a determination, and if already issued shall be denied or revoked upon a hearing, by the Community Development Director that any of the following circumstances exist:
(1) Any owner/operator or staff person has provided materially false or misleading information on the application or omitted any pertinent information; (2) Any owner/operator or staff person has an employment history in which he or she was terminated during the past two (2) years because of physical assault, sexual harassment, embezzlement or theft; failing a drug test; falsifying a drug test; and selling or furnishing illegal drugs or alcohol.

(3) Any owner/operator or staff person has been convicted of or pleaded nolo contendere, within the last seven (7) to ten (10) years, to any of the following offenses:
i. Any sex offense for which the person is required to register as a sex offender under California Penal Code section 290 (last ten (10) years); ii. Arson offenses—Violations of Penal Code Sections 451—455 (last seven (7) years); or
iii. Violent felonies, as defined in Penal Code section 667.5, which involve doing bodily harm to another person (last ten (10) years).
iv. The unlawful sale or furnishing of any controlled substances (last seven (7) years).
(4) Any owner/operator or staff person is on parole or formal probation supervision on the date of the submittal of the application or at any time thereafter. (5) The owner/operator accepts residents, other than a house manager, who are not disabled as defined by the FHAA and FEHA.
(6) A special use permit for a sober living home shall also be denied upon a determination, and if already issued, shall be revoked, and any transfer shall be denied or revoked, upon a hearing by the Community Development Director, or his or her designee, that any of the following circumstances exist:
i. Any owner/operator or staff person of a sober living home is a recovering drug or alcohol abuser and upon the date of application or employment has had less than one full year of sobriety.
ii. The owner/operator of a sober living home fails to immediately take measures to remove any resident who uses alcohol or illegally uses prescription or non-prescription drugs, or who is not actively participating in a legitimate recovery program from contact with all other sober residents.
iii. The sober living home, as measured by the closest property lines, is located within six hundred fifty feet of any other sober living home or state licensed alcoholism or drug abuse recovery or treatment facility. If a state-licensed alcoholism or drug abuse recovery or treatment facility moves within six hundred fifty feet of an existing sober living home this shall not cause the revocation of the sober living home’s permit or be grounds for denying a transfer of such permit.
(7) For any other significant and/or repeated violations of this section and/or any other applicable laws and/or regulations, including, but not limited to, failure to comply with the provisions of subsections (a)(10) through (13).

(8) Revocation shall not apply to any group home, which otherwise would cause it to be in violation of this section, that has obtained a reasonable accommodation pursuant to Section 21.08.060.

21.29.035 Compliance for group homes in R1 Zone.
(a) Existing group homes in the R1 zone must apply for a special use permit within ninety (90) days of the effective date of this chapter. (b) Group homes that are in existence upon the effective date of this chapter shall have one (1) year from the effective date of this chapter to comply with its provisions, provided that, any existing group home serving more than six (6) residents, must first comply with the six-resident maximum.
(c) Existing group homes obligated by a written lease exceeding one (1) year from the effective date of this chapter, or whose activity involves investment of money in leasehold or improvements such that a longer period is necessary to prevent undue financial hardship, are eligible for up to one (1) additional years grace period pursuant to approval of the Community Development Director or his or her designee.

21.29.040 Group homes in the GH, R2, R3 and R4 residential zones with six (6) or fewer occupants.
(a) A special use permit shall be required for the operation of a group home, including a sober living home, with six (6) or fewer occupants in the GH, R2, R3 and R4 zones subject to the following requirements:
(1) The application for, and operation of, the group home complies with subsections (a)(1), (a)(2) and (a)(4) through (a)(14) of section 21.29.030. (2) The application includes a live scan of the house manager and/or operator of the group home.
(3) The group home or sober living home is at least six hundred fifty (650) feet from any other property, as defined in section 4.35.010, that contains a group home, sober living home or state-licensed drug and alcohol treatment facility, as measured from the property line.
(b) The Community Development Director may issue, revoke, or deny a special use permit for a group home, including a sober living home subject to this chapter, pursuant to the procedures and requirements of section 21.29.030. (c) An applicant may seek relief from the strict application of this section by submitting an application to the Planning Commission setting forth specific reasons as to why accommodation over and above this section is necessary under state and federal laws, pursuant to section 21.08.060.

21.29.050. Conditional use permit required for group homes, residential care facilities and drug and alcohol treatment facilities in the GH, R2, R3, and R4 zones with seven (7) or more occupants.

A conditional use permit shall be required for the operation of a group home, statelicensed residential care facility or state-licensed drug and alcohol treatment facility with seven (7) or more occupants in the GH, R2, R3, and R4 zones subject to the following conditions:
(a) The requirements of Chapter 21.36, Conditional Use Permits, of this title have been met, including but not limited to the findings required by section 21.36.050. (b) The group home, residential care facility or state-licensed drug and alcohol treatment facility is at least six-hundred fifty feet from any property, as defined in section 13-321, that contains a group home, sober living home or state-licensed drug and alcohol treatment facility, as measured from the property line, unless the reviewing authority determines that such location will not result in an over-concentration of similar uses. (c) The applicant obtains an operator’s permit as required by 4.35.025 except that this requirement shall not apply to any state-licensed residential care facility or state licensed drug and alcohol treatment facility.

21.29.060 Compliance
(a) Group homes in the GH, R2, R3, and R4 zones with six (6) or fewer occupants that are in existence upon the effective date of this section may continue to operate subject to the following:
(1) A complete application for a special use permit is filed within 90 days of the effective date of this chapter; and
(2) The group home is in full compliance with all of the conditions of this chapter within one (1) year of its effective date. Notwithstanding the foregoing, existing group homes obligated by a written lease exceeding one (1) year from the effective date of the chapter, or whose activity involves investment of money in leasehold or improvements such that a longer period is necessary to prevent undue financial hardship, are eligible for up to one additional year grace period pursuant to approval from the Community Development Director or his or her designee.
(b) Group homes, state licensed residential care facilities and state licensed drug and alcohol treatment facilities in the GH, R2, R3, and R4 with seven (7) or more occupants that are in existence upon the effective date of this chapter may continue to operate subject to the following:

(1) The operator of a group home obtains an operator’s permit pursuant to Chapter 4.35 within one hundred twenty days from the effective date of this chapter; and (2) The group home, state licensed residential care facility and/or state licensed drug and alcohol treatment facility is in full compliance with all conditions of this chapter, including obtaining a conditional use permit, within one (1) year from the effective date of this chapter. Notwithstanding the foregoing, an existing group home, state licensed residential care facility and/or state licensed drug and alcohol treatment facility obligated by a written lease exceeding one (1) year from the effective date of the chapter, or whose activity involves investment of money in leasehold or improvements such that a longer period is necessary to prevent undue financial hardship, are eligible for up to one additional year grace period pursuant to approval from the Community Development Director or his or her designee.

Section 3:

Fountain Valley Municipal Code Section 21.08.030 Residential zoning district land uses and permit requirements is hereby amended to read as follows:

Table 2-2 identifies the uses of land allowed by this title in each residential zoning district, and the land use permit required to establish each use, in compliance with Section 21.06.030 (Allowable land uses and permit requirements) of this title.

Note: where the last column in the tables (“Specific Use Regulations”) includes a section number, the regulations in the referenced section apply to the use; however, provisions in other sections of this title may also apply.

TABLE 2-2

PERMIT REQUIRED BY DISTRICT
P Permitted Use
Allowed Uses and Permit Requirements CUP
SUP
Conditional Use Permit
Required
Special Use Permit
Required
for Residential Zoning Districts — Use Not Allowed
LAND USE (1) R1 GH R2 R3 R4
Specific
Use
Regulations

RECREATION, EDUCATION, PUBLIC ASSEMBLY USES
Private residential
recreational facilities

CUP CUP CUP CUP CUP
Assembly uses CUP CUP CUP CUP CUP
Schools - private CUP CUP CUP CUP CUP

RESIDENTIAL USES
Accessory dwelling units P P P P P 21.08.055
Affordable housing P P P P P

P Permitted Use
Allowed Uses and Permit Requirements CUP
SUP
Conditional Use Permit
Required
Special Use Permit
Required
for Residential Zoning Districts — Use Not Allowed
LAND USE (1) R1 GH R2 R3 R4
Specific
Use
Regulations
Cottage food operations P P P P P 21.42.065
Duplexes — P P P P
Home businesses P P P P P
Mobile home parks — — — CUP CUP
Multi-family dwellings — — CUP CUP CUP
Group Home (3) 6 or less
residents
SUP SUP SUP SUP SUP 21.29.030 &

21.29.040
Group Home 7 (3)(4) or more — CUP CUP CUP CUP
Residential accessory uses
and structures

P P P P P
Residential care home -
large

CUP CUP CUP CUP CUP
Residential care home -
small

P P P P P
Single-family dwellings P CUP P — —
Supportive housing P P P P P
Transitional housing P P P P P

SERVICES
Adult day care - large (2) (2) (2) (2) (2) 21.30.020
Adult day care - small P P P P P 21.30.020
Day care - large family day
care homes
P (2) P (2) P (2) P (2) P (2) 21.30.020
Day care - small family day
care homes
P P P P P 21.30.020
Child day care centers CUP CUP CUP CUP CUP 21.30.020
Wireless
telecommunications
facilities (2)
Administrative
wireless
facilities
permit (2)
— — — — 21.28
Notes:
(1) See Chapter 21.90 for land use definitions. See Section 21.02.020 regarding uses not listed.
(2) Wireless telecommunication facilities are only allowed on church properties in the R1 zone subject to the requirements of Chapter 21.28. Wireless telecommunications

facilities may also be permitted by a conditional use when the planning/building director determines that the project’s complexity or the public interest warrants the referral. (3) Definition of group home in 4.35.010.
(4) Per Chapter 4.35 “Group Homes” an Operator’s Permit is also required 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 subsequently be declared invalid or unconstitutional.

Section 4:

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

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting this ____ day of , 2023.

ATTEST:
_______________________ _______________________
Rick Miller, City Clerk Patrick Harper, Mayor
Approved as to Form:

HARPER & BURNS LLP
_______________________
Alexandra Halfman
Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: September 19, 2023 Members of the City Council
SUBJECT: Well No. 11 – General Pump Company, Inc. Contract Award & Amendment No. 1 to Richard C. Slade & Associates, LLC CON 21-14

1. Accept the bid and award a construction contract in the amount of $592,730 to General Pump Company, Inc. for Project No. 24029, Well No. 11 Rehabilitation Project;

2. Accept the Richard C. Slade & Associates LLC Proposal in the amount of $73,999; and;

3. Approve Amendment No. 1 to the Richard C. Slade & Associates LLC CON 21-14 in the amount of $43,583.13.

Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☒ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☐ Attract and retain quality staff through best practices and trends ☒ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable
EXECUTIVE SUMMARY:

The City of Fountain Valley owns and operates six (6) groundwater wells throughout the City.

Water production from groundwater wells is the least expensive water resource that the City can deliver to the residents of Fountain Valley. Water wells, like other distribution system assets, require regular and diligent maintenance and rehabilitation to ensure reliability and efficient operation to maximize water production, as such, a hydrogeological expert that specializes in well work is necessary to assess the condition of each well and provide the best rehabilitation method for each of the unique well issues.

On August 10, 2023, through a competitive bidding process, the City solicited to all three (3) contractors from the City Council approved on-call contractor list, and received proposals from one (1) of the three (3) qualified contractors. On August 24, 2023, the City received one (1) bid for Project No. 24029, Well No. 11 Rehabilitation Project. The responsive bidder, General Pump Company, Inc. submitted a bid in the amount of $592,730 in accordance with City requirements and purchasing policies. City staff has confirmed the bid to be fair in value as the bid was within 10% of the estimate for the cost of construction.

Well No. 11 – General Pump Company, Inc. Contract Award & Amendment No. 1 to Richard C. Slade & Associates, LLC CON 21-14
September 19, 2023