Fountain Valley City Council
December 16, 2025

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

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

Study Session 5:30 p.m.

Regular Meeting 6:00 p.m.

Tuesday, December 16, 2025
Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org
MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.

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

PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address th e Cit y Counci l or othe r government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor.

Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.

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

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

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

ZOOM LINK INFORMATION
• Participants that choose to watch the City Council meeting through zoom are automatically placed in the waiting room and will only be allowed into the Zoom meeting if they request to make a public comment. In order to make a public comment, you will indicate through the chat feature which item you would like to speak on, and click on the “raise hand” icon to let the administrator know you wish to speak. • All participants are muted unless you are requesting to speak, at which time you will be allowed to unmute and make you comment.
• All public comments are allowed up to 3 minutes to speak.

Topic: City Council Meeting
Time: Dec 16, 2025 06:00 PM Pacific Time (US and Canada) Join Zoom Meeting
https://fountainvalley.zoom.us/j/85373968563?pwd=RYvGlEO4zTMksMraNjZAjkMEer1oVQ.1 Meeting ID: 853 7396 8563
Passcode: 217283

YOUTUBE INFORMATION
The City Council meeting is streamed live via Youtube, you can access the live City Council meeting by clicking on this link to access the broadcast on Youtube:
https://www.youtube.com/@CityofFV

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

PUBLIC COMMENTS (Closed Session matters only)
Persons wishing to speak on a Closed Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.

1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Properties: 17168 Newhope #204 (APN: 938-785-82), 17168 Newhope #234 (APN: 938-786- 12, 17168 Newhope #102 (APN: 938-785-68),
17168 Newhope #202 (APN: 938-785-80), 17168 Newhope #231 (APN: 938-786-09), 17168 Newhope #230 (APN: 938-786-08),
17168 Newhope #112 (APN: 938-785-78), 17230 Newhope #101 (APN: 938-785-23), 17230 Newhope #103 (APN: 938-785-25),
17230 Newhope #205 (APN: 938-785-41), 17230 Newhope #206 (APN: 938-785-42), 17230 Newhope #102 (APN:938-785-24),
17230 Newhope #201 (APN: 938-785-37), 17230 Newhope #202 (APN: 938-785-38) Agency Negotiators: Maggie Le, City Manager; Omar Dadabhoy, Deputy City Manager/Community Development Director; Ashlyn Newman, Neighborhood Improvement Manager; Victor Viramontes, Management Analyst; Robert Daley, Housing Technician; Colin Burns, Attorney for the City.

Negotiating Parties: City of Fountain Valley and Fountain Valley Rentals, LLP Recommendations:

1. Receive staff presentation prior to closed session discussion

2. Convene closed session discussion and provide direction regarding price and terms of payment

STUDY SESSION
CALL TO ORDER 5:30 p.m.

PUBLIC COMMENTS (Study Session matters only)
Persons wishing to speak on a Study Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.

1. Agape Tennis Academy Extension Request Review – Presentation by Rob Frizzelle, Community Services Director

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

INVOCATION Brock Snook, Associate pastor - Branches Church SALUTE TO THE FLAG Council Member Glenn Grandis

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

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS

CITY MANAGER / MAYOR UPDATE

PRESENTATIONS
• Certificates of Recognition to the 2026 Miss Fountain Valley Winner Maya Lessenger and Her Court – Presentation by Mayor Cunneen

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

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

CONSENT CALENDAR
Consent Calendar Items 1 – 4 will be approved simultaneously with one motion unless separate action/or discussion is requested.

1. Receive and File the Draft Minutes of the December 2, 2025 Regular City Council Meeting

2. City of Fountain Valley Six Month Strategic Objectives for September 23, 2025 through March 17, 2026 Page 11
Recommended Action: Receive and File the six-month strategic objectives matrix for September 23, 2025, through March 17, 2026

3. Approve the Register of Demands for the period of 11/20/2025 to 12/3/2025 Page 17 Recommended Action: Staff recommends Alternative No. 1 to approve the attached Register of Demands representing payments made by the City of Fountain Valley between 11/20/2025 and 12/3/2025 for a total of $1,155,151.73.

4. Housing Authority and Housing Successor Agency Annual Report - FY 2024/25 Page 26 Recommended Action: Receive and file the Housing Authority and Housing Successor Agency Annual Report; authorize staff to forward the report to the California Department of Housing and Community Development and the Governor's Office and post the Report on the City's website by December 31, 2025.

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

5. Introduction and First Read: Code Amendment No. 25-05 – An Amendment to Fountain Valley Municipal Code to Add Sections 21.09 and 21.67 and Amend Section 21.08 Regarding SB 9 Two Unit Developments and Urban Lot Splits – Presentation by Ron Vargas, Assistant Planner Page 39
Recommended Action: 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. 25-05 to add Fountain Valley Municipal Code Sections 21.09 (SB 9 two-unit residential developments and urban lot splits) and 21.67 and amend Section 21.08 (Attachment #4).

6. Code Amendment No. 25-06 – An Amendment to the Fountain Valley Municipal Code (FVMC) Section 21.10.030, 21.15.030, 21.90.020, and the Addition of Section 21.30.100 to Amend Use Requirements for Breweries and Distillers, Artist Studios, Automatic Teller Machines and Large Format Restaurants – Presentation by Ron Vargas, Assistant Planner Page 69 Recommended Action: Staff is requesting City Council approval of Alternative No. 1:

Introduce and approve the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 25-06 to amend Fountain Valley Municipal Code Sections 21.10.030, 21.15.030, 21.90.020, and add Section 21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants.

ADMINISTRATIVE ITEMS

7. Accept the bids and award a construction contract to WGJ Enterprises, Inc. dba: PCI for the Signing and Striping Improvements for Eleven (11) School Areas, Project No. 24043, in the amount not-to-exceed $84,750. – Presentation by Jessenia Penaloza, Assistant Engineer

Recommended Action: Accept the bids and award a construction contract to WGJ Enterprises, Inc. dba: PCI for the Signing and Striping Improvements for Eleven (11) School Areas, in the amount not-to-exceed $84,750.

8. Approval of a Concession Agreement with Borden & Robinson, LLC DBA Dos Mamacitas for Snack Bar Operations at the Fountain Valley Sports Park – Presentation by Rob Frizzelle, Community Services Director Page 144
Recommended Action: Approve the Concession Agreement with Borden & Robinson, LLC, for Snack Bar Operations at the Fountain Valley Sports Park

9. Approval of a professional services contract with Baker Tilly for a comprehensive organizational assessment of the Police Department in a not-to-exceed amount of $75,258; approval of a $15,000 contingency, and a Budget Amendment to appropriate $90,260 from the General Fund into the Police Department Professional Services Fund – Contracts – Presentation by Mike Parsons, Police Lieutenant Page 207 Recommended Action: Approve a professional services contract with Baker Tilly for a comprehensive organizational assessment of the Police Department in a not-toexceed amount of $75,258; approval of a $15,000 contingency, and a Budget Amendment to appropriate $90,260 from the General Fund into the Police Department Professional Services Fund

APPOINTMENTS

9. Mayoral Appointments of Council Members and Staff to Outside Committees Page 248

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

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

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

COMMENTS

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is January 20, 2026 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

City of Fountain Valley
Memorandum
TO: Honorable Mayor and City Council
FROM: Rob Frizzelle, Community Services Director/Deputy City Manager DATE: 12/16/2025
SUBJECT: Study Session Memo – Agape Tennis Academy Extension Request Review ______________________________________________________________________________ EXECUTIVE SUMMARY:

The City of Fountain Valley has received a request for a concession extension from Agape Tennis and Pickleball Academy (Agape). Agape has been providing tennis and pickleball services through a concession agreement with the City of Fountain Valley since July 20, 2021.

Agape is currently operating the Tennis and Pickleball facility at the Fountain Valley Sports Park through the first of two available two-year extensions. The total available term of the concession agreement is seven years. Please find their extension letter request (Exhibit A) and performance details (Exhibit B) attached.

Due to the positive performance of the concessionaire, Agape Tennis Academy, LLC, staff recommend extending the concession term for an additional two years as identified in the Contract 20-25 (Exhibit C). However, the City would like to negotiate the concessionaire’s payment obligations in subsection 7 (A.B.C.) of the contract.

DISCUSSION:

Concession Agreement Terms;
The term of this Agreement (Concession agreement with Agape Tennis Academy) shall be three years from the date of execution (July 20, 2021). And, by mutual agreement the City of Fountain Valley and Concessionaire, this Agreement shall be renewable for two additional two-year periods. City reserves the right to exercise the option to renew bi-annually (subject to the appropriate funds), not to exceed a maximum of seven years.

Agape Tennis and Pickleball Academy is currently operating as a concessionaire at the Fountain Valley Tennis and Pickleball Center. Terms or their current extension agreement are below (a second two-year extension is available in July of 2026);

1. The term provided in Section 12 of the Agreement is amended beginning on July 21, 2024, and terminating on July 20, 2026.

2. The Concessionaire’s payment obligations provided in Section 7 of the Agreement is amended beginning on July 21, 2024, and terminating on July 20, 2026.

Concessionaire agrees to pay City a yearly fee for these concession rights of Sixty Thousand Dollars ($66,000) in year 4 of the contract, and Sixty-Six Thousand Dollars ($68,400) in year 5 of the contract. The amount and timing of payment to City shall be as follows:
(a) Year 4 – 12 Monthly payments of $5,500.00 are due for the 4th year of the executed contract.
(b) Year 5 – 12 Monthly payments of $5,700.00 are due for the 5th year of the executed contract.

Performance of Concessionaire:

August 2021 – July 2022 Revenue: $736,901.59
• Regular FV Patrons: 5,985
• Tennis: 3,242
• Pickleball: 2,653
• Tournament / Special event users: 4,000
• Total Participants in Tennis & Pickleball: 9,985
• 12 staff
August 2022- July 2023 Revenue: $917,301.32
• Regular FV Patrons: 8,606
• Tennis: 4,301
• Pickleball: 4,305
• Tournament / Special event users: 5,500
• Total Participants in Tennis & Pickleball: 14,106
• 20 staff
August 2023 - July 2024 Revenue: $1,189,145.01
• Regular FV Patrons: 11,488
• Tennis: 7,002
• Pickleball: 4,486
• Tournament/Special event users: 7,000
• Total Participants in Tennis & Pickleball: 18,488
• 23 staff
August 2024 – October 2025 Revenue: $1,388,112 (Anticipated) • Regular FV Patrons: 20,959 (actual)
• Tennis: 12,606 users
• Pickleball: 8,353 users
• Tournament/Special events: 8,000 users
• Total Participants in Tennis & Pickleball at FV in 2025: 29,618 (anticipated) • 26 staff
Recommendation:

Due to the positive performance of the concessionaire, their commitment to the community and desire for a long-term agreement and capital improvements to the facility, staff recommend executing the final two-year extension with Agape Tennis Academy, LLC for concession services at the Fountain Valley Tennis and Pickleball Center.

Dear Fountain Valley City Council and Leadership,
Agape Tennis and Pickleball Academy has had the honor and privilege of serving the Fountain Valley community for the past 4.5 years. We want to express our sincerest desire to obtain our contract extension for another 2 years per our agreement with the City. We desire to partner with the City of Fountain Valley for not just another two years but for years to come.

In the past 4.5 years, Agape Tennis and Pickleball has become an integral part of the community serving 20,959 patrons this year alone ( this includes only our regular patrons).

This is nearly half of the population of the City of Fountain Valley. Agape Tennis and Pickleball Academy produce’s a significantly higher amount of revenue than all the other management groups serving public centers in Southern California, even at the centers with more courts! For example, in 2024 and 2023 Agape managed Fountain Valley, averages more monthly and annual revenue than all of the Long Beach centers, El Dorado and BJK combined, on far less courts.
2023 FV: $917,301 LB: $833,171
2024 FV: $1,189,145 LB: $979,861
Agape is on track to do $1,388,112 in revenue in 2025. These numbers show that Agape is able to include and engage far more of the entire community than other management groups due to our model of community engagement, superior systems, and excellent and caring team. The community in other cities are not being included like they are in Fountain Valley.

The number of patron participation, engagement, and revenue growth at Fountain Valley continues to increase each year ( as can be seen on our PowerPoint). Agape is committed to our core values, HEART, Honesty, Excellence, Attitude, Responsibility, and Teamwork that we have had since the founding of our company in 2012. Embodying our core values is at the center of all that we do at Agape, which means unconditional love. Creating an environment where the whole community feels welcomed and included is core to the company. Our name, Agape, is a daily reminder of our collective mission and values.

Agape has a 26 person management team, consisting of office administrators, a marketing director, a training and development director, and tennis and pickleball coaches that all work together to provide the City the best in operations, programming, and maintenance.

Our team regularly participates in the City of Fountain Valley community events such as the Exhibit A - Extension Request
Egg Hunt, FV Tree Lighting, Monster Bash, Summer Concert Series, and more. In addition to attending City events, Agape hosts numerous events that increase the City’s awareness far beyond our local community. Some of these events are:
• SPECIAL OLYMPICS
• ESPN LA
• FV FIREFIGHTER’S CLASSIC
• ISLANDS RESTAURANT TOURNAMENT
• CALIFORNIA PICKLEBALL ASSOCIATION (CAPA)
• MINOR LEAGUE PICKLEBALL
• AMERICAN PICKLEBALL SERIES
• USTA JR SANCTIONED TENNIS TOURNAMENTS, LEVEL 5, 6, & 7 • KINGSTON TECHNOLOGY
We enjoy being a recognizable part of the community and continually getting more people to play tennis and pickleball. Agape helps keep the City of Fountain Valley healthy and happy.

Agape Tennis and Pickleball has achieved many milestones and successes that few other organizations in our industry have in our 4.5 years with Fountain Valley for example:
• In 2025 Agape was recognized as a Speaker for the Racquet Sports Professional Association Southern California Conference and has been a Keynote Speaker in 2025, 2024, 2023, and 2022 for the International Racquets Conference with the Professional Tennis Registry (PTR) and Professional Pickleball Registry ( PPR) • In 2025 we have 20,959 patrons and are on track to do $1,388,112 in 2025 • In 2024, 2023, and 2022, Agape hosted the Special Olympics at Fountain Valley Tennis & Pickleball Center.
• In March 2024, Agape hosted ESPN at our center in Fountain Valley, California, receiving national exposure for Fountain Valley’s “Pickleball Madness Tournament” and Agape CEO was on ESPN Live.
• In February 2023, Agape was selected as the National Public Provider of the Year for by the Professional Pickleball Registry
• In 2022, Agape CEO Amy Pazahanick was selected as a Top 15 Leader in the City of Fountain Valley, California, for her contributions to economic impact and community service. The United States Congress House of Representatives, California Legislature Assembly, and the County of Orange recognized her for this award. • In November 2022, the City Council for Fountain Valley recognized Agape and Amy Pazahanick by awarding them the City’s Kindness Award for dedication to the betterment and improvement of the quality of life in the community.

Agape Tennis and Pickleball Academy has also invested financially into the pro shop, tennis and pickleball courts, and technology for our patrons by providing the following in the last

4.5 years:
• $20,000 of brand new windscreens for the entire center • New on court benches, netting, trash cans, pickleball barriers, and wheeled pickleball nets
• Two new large storage sheds
• Access to a website and App for ease
• Ability to have an account and access to Club Automation, a software that our patrons use that provides them with superior communication, efficiency, high level reporting, and transparency. Club Automation offers patrons a seamless process to reserve courts, sign up for programs, and manage their own accounts online. Club Automation also allows Agape to provide the City detailed reporting on users, revenues, and over 60+ other reports.
• Shade awnings for tennis and pickleball
• Painting the pro shop
• All new tennis carts, coaching equipment, court cleaning equipment annually • New tennis and pickleball’s every season for our patrons • Regular deep cleaning of the pro shop from a professional Many of these items go beyond what our contract has called for us to do because we see the center as an extension of ourselves and company. Overall, Agape has exceeded our contract requirements, become an integral part of the Fountain Valley community serving nearly half of the population, and offers the City the best in tennis and pickleball center management, operations, and maintenance. From Agape’s Club Automation, use of technology, communication with the City, programming, community engagement, and maintenance, Agape Tennis and Pickleball Academy is committed to bringing the best for the City of Fountain Valley for years to come and would be delighted to extend our contract another two years. We have enjoyed our partnership with the City of Fountain Valley and look forward to many more years of a great relationship.

Sincerely Amy Pazahanick and the Agape Team
City of Fountain Valley Tennis &
Pickleball Center

AGAPE TENNIS & PICKLEBALL ACADEMY

AMY PAZAHANICK, CEO
Exhibit B - Concessionare Performance
Participation Growth
Year 1: August 2021 – July 2022
Regular FV Patrons: 5,985 Tennis: 3,242 Pickleball: 2,653 Tournament / Special event users: 4,000
Total Participants in Tennis & Pickleball: 9,985
Year 2: August 2022- July 2023
Regular FV Patrons: 8,606 Tennis: 4,301 Pickleball: 4,305 Tournament / Special event users: 5,500
Total Participants in Tennis & Pickleball: 14,106
Year 3: August 2023 - July 2024
Regular FV Patrons: 11,488 Tennis: 7,002 Pickleball: 4,486 Tournament/Special event users: 7,000
Total Participants in Tennis & Pickleball: 18,488
Participation Growth
Continued…
Year 4: August 2024 – October 2025
Regular FV Patrons: 20,959 (actual)
Tennis: 12,606 users
Pickleball: 8,353 users
Tournament/Special events: 8,000 users
Total Participants in Tennis & Pickleball at FV in
2025: 29,618 (anticipated)
Annual Revenue Growth
 2022: $736, 901.59
Team: 12 staff
 2023: $917,301.32
Team: 20 staff
 2024: $1,189,145.01
Team: 23 staff
 2025: $1,388,112 (Anticipated)
Team: 26 staff
Where we are today
August 2021 – October 2025
(4 years and 2 months)
 Regular FV Patrons: 20,959
 Total FV Users: 29,618
 Agape Staff: 26
 Annual revenues: $1,388,112
Pickleball Growth:

Regular FV Pickleball Patrons
 Year 1 2,653
 Year 2 4,305
 Year 3 4,486
 Year 4 8,353
Tennis Growth:

Regular FV Tennis Patrons
 Year 1 3,242
 Year 2 4,301
 Year 3 7,002
 Year 4 12,606
Tournaments & Special
Events:
 SPECIAL OLYMPICS
 ESPN LA
 FV FIREFIGHTER’S CLASSIC
 ISLANDS RESTAURANT TOURNAMENT
 California Pickleball Association (CAPA)
 American Pickleball Series (APS)
 USTA JR SANCTIONED TOURNAMENTS
 AGAPE EVENTS – Monthly
 Minor League Pickleball
 KINGSTON TECHNOLOGY
 8,000+ Additional Participants Annually from
tournaments & special events
Organizational Growth
Since Agape started with FV, we have acquired the
below additional contracts to manage:
 City of Oxnard, California
 City of Camarillo, California (Pleasant Valley
Recreation & Parks District)
 City of Atlanta, Georgia ( 5 Tennis & Pickleball
Centers – 45 pickleball courts, 63 tennis courts, 3
platform tennis courts) Agape grew City of
Atlanta revenues by 646% in our first year of
management, from $640,000 in revenue to
$3,100,000 in 2024.

Maintenance & Improvements at FV
 $20,000 of wind screens for the entire center
 New on court benches, netting, trash cans, pickleball barriers, and wheeled pickleball nets  Two new large storage sheds
 Access to a website and App for ease
 Ability to have an account and access to Club Automation, a software that our patrons use that provides them with superior communication, efficiency, high level reporting, and transparency. Club Automation offers patrons a seamless process to reserve courts, sign up for programs, and manage their own accounts online. Club Automation also allows Agape to provide the City detailed reporting on users, revenues, and over 60+ other reports.
 Shade awnings for tennis and pickleball
 Painting the pro shop
 All new tennis carts, coaching equipment, court cleaning equipment annually  New tennis and pickleball’s every season for our patrons  Regular deep cleaning of the pro shop from a professional Agape Awards & Distinctions
 In 2025 Agape was recognized as a Speaker for the Racquet Sports Professional Association Southern California Conference and a Keynote Speaker in 2025, 2024, 2023, and 2022 for the International Racquets Conference with the Professional Tennis Registry (PTR) and Professional Pickleball Registry ( PPR)
 In 2025 Agape has 20,959 patrons, almost 40% of the total population of the City itself.  Revenue increases from $917, 301 in 2023; $1,189,145 in 2024; $1,388,112 in 2025  In 2024, 2023, and 2022, Agape hosted the Special Olympics at Fountain Valley Tennis & Pickleball Center.
 In March 2024, Agape hosted ESPN at our center in Fountain Valley, California, receiving national exposure for Fountain Valley’s “Pickleball Madness Tournament” and Agape CEO was on ESPN Live.
 In February 2023, Agape was selected as the National Public Provider of the Year for by the Professional Pickleball Registry
 In 2022, Agape CEO Amy Pazahanick was selected as a Top 15 Leader in the City of Fountain Valley, California, for her contributions to economic impact and community service. The United States Congress House of Representatives, California Legislature Assembly, and the County of Orange recognized her for this award.
 In November 2022, the City Council for Fountain Valley recognized Agape and Amy Pazahanick by awarding them the City’s Kindness Award for dedication to the betterment and improvement of the quality of life in the community.

Agape’s Community
Outreach
 Program offerings for everyone:
 Seniors, youth, young adults, adults, special needs,
disadvantaged groups
 Our naturally diverse and inclusive staff attracts a
diverse clientele that is reflective of the FV
community
 Free and Discounted offerings:
 Grand Openings
 Appreciation days
 Holiday Party
 Free Classes
 Free Court Time
 Partnerships – local businesses, organizations, schools  Strategic & targeted marketing to reach new players
Short Term Goal
Agape has exceeded our contract requirements,
become an integral part of the Fountain Valley
community serving nearly 40% of the city’s
population, and offers the City the best in tennis
and pickleball center management, operations,
and maintenance. From Agape’s Club
Automation, use of technology, communication
with the City, programming, community
engagement, and maintenance, Agape Tennis
and Pickleball Academy is committed to bringing
the best for the City of Fountain Valley for years to
come and would be delighted to extend our
contract another two years.

Long Term Goal
 Partner with the City to invest in the build
out of a larger pro shop, restrooms, and
locker rooms at the center
 Build out more tennis courts, 6 – 8 more
tennis courts
 Enter into a long-term agreement with the
City of Fountain Valley
 Continue to grow participation, usage,
revenues, and community engagement for
the City of Fountain Valley
Thank you
 THE AGAPE TEAM
 [email protected]
 WWW.AGAPETENNISACADEMY.COM
Exhibit C - Concession Agreement

MINUTES OF THE

CITY COUNCIL/ SUCCESSOR AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/ FOUNTAIN VALLEY

HOUSING AUTHORITY
Closed Session 5:30 p.m.

Regular Meeting 6:00 p.m.

Tuesday, December 2, 2025
Council Chambers

CLOSED SESSION
CALL TO ORDER 5:30 p.m.

PUBLIC COMMENTS (Closed Session matters only)

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: De La Cruz v. City of Fountain Valley
There was no reportable action.

OPEN SESSION
CALL TO ORDER 6:11 p.m.

INVOCATION Father Charles Tran – Holy Spirit Catholic Church SALUTE TO THE FLAG Mayor Ted Bui

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

All present

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
Item 5 – There was a correction to the staff report.

CITY MANAGER / MAYOR UPDATE
City Manager Maggie Le and Mayor Bui provided their updates.

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Mike Rough, Vicki Johnson

CONSENT CALENDAR

1. Receive and File the Draft Minutes of the November 18, 2025 Regular City Council Meeting Minutes
ACTION: Move to Receive and File the Draft Minutes of the November 18, 2025 Regular City Council Meeting
MOTION: Constantine SECOND: Cunneen
AYES: Constantine, Grandis, Harper, Cunneen, Bui
NOES: None
ABSENT: None
ABSTAIN: None

2. Approve the Register of Demands for the period of 11/6/2025 to 11/19/2025 ACTION: Move to Approve the Register of Demands for the period of 11/6/2025 to 11/19/2025
MOTION: Constantine SECOND: Cunneen
AYES: Constantine, Grandis, Harper, Cunneen, Bui
NOES: None
ABSENT: None
ABSTAIN: None

3. Approve an agreement with SC Commercial LLC dba SC Fuels for bulk fuel delivery for Fire Station Nos. 1 and 2, and authorize staff to increase the amount of PO# 260105 by $52,500.

ACTION: Move to Approve an agreement with SC Commercial LLC dba SC Fuels for bulk fuel delivery for Fire Station Nos. 1 and 2, and authorize staff to increase the amount of PO# 260105 by $52,500.

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

4. Approval of Memorandum of Understanding for Countywide Mass Notification System (AlertOC)
ACTION: Move to Approve a Memorandum of Understanding for Countywide Mass Notification System (AlertOC)
MOTION: Constantine SECOND: Cunneen
AYES: Constantine, Grandis, Harper, Cunneen, Bui
NOES: None
ABSENT: None
ABSTAIN: None

5. Approval of a Resolution of the Fountain Valley City Council adopting the Measure M2 Expenditure Report for the Fiscal Year 2024-25
ACTION: Move to Approve a Resolution of the Fountain Valley City Council adopting the Measure M2 Expenditure Report for the Fiscal Year 2024-25 MOTION: Constantine SECOND: Cunneen
AYES: Constantine, Grandis, Harper, Cunneen, Bui
NOES: None
ABSENT: None
ABSTAIN: None

PRESENTATIONS
 Recognition of Mayor Ted Bui by Outside Agencies
The following agencies recognized Mayor Bui for his work over the last year as Mayor:
o Assemblyman Tri Ta
o State Senator Tony Strickland
o Orange County Supervisor Janet Nguyen
o Kathryn Morrison – ACC-OC Director of Member Services o Debbie Killey – Fountain Valley Chamber of Commerce
o Joe Mosca - OCPA
 Presentation to Outgoing Mayor Bui by Vice Mayor Cunneen Vice Mayor Cunneen presented Mayor Bui with Mayors Gavel Plaque, commemorating his year as Mayor.
 Comments by Outgoing Mayor Bui
Mayor Bui thanked everyone for their support over the last year.

 Election of Mayor and Vice Mayor
By a 5-0 vote, Council member Jim Cunneen was elected as the Mayor for 2025/2026.

By a 5-0 vote, Council Member Patrick Harper was elected as Vice mayor for 2025/2026  Administration of the Oath of Office to Newly Elected Mayor City Clerk Rick Miller administered the Oath of Office to newly elected Mayor, Jim Cunneen  Comments by New Mayor
Mayor Jim Cunneen thanked everyone for their support and spoke about his plans for 2026 as the Mayor of Fountain Valley.

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
None

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
None
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL COMMENTS Mayor Cunneen
November 20 Attended the tour of Ironworkers Local 416 in La Palma November 25 Attended a dinner with his famil and Fountain Valley Firefighters at station 1 Vice Mayor Harper
November 19 Attended the ACC-OC Board Meeting
November 20 Attended the Mobile Source Air Pollution Reduction Committee meeting November 24 Attended the OCTA Board meeting
December 1 Attended the OCTA regional Transportation Planning Committee meeting and the RSVP Volunteer Appreciation Lunch
Council Member Grandis
November 19 Attended the Veteran of Distinction Award and the OC Sanitation District Steering Committee meeting and the General Board meeting
November 20 Attended the FV Kiwanis meeting, Foundation Board meeting and the Foundation Volunteer meeting
December 1 Attended the FVSD Educational Foundation Board meeting and the OCPA Marketing and Communications Committee
December 2 Attended the Light the World – Giving Machines event in Huntington Beach

Council Member Constantine
November 15 Stopped in at the twice a year charity Poker Tournament to volunteer for the Fountain Valley Community Foundation, as I was signed up; however, there were already 3 volunteers sitting at the registration table when I arrived by 5 p.m. This was to be included in my prior report.

November 19 Stopped in at the “Free Art Workshop” at the Center at Founders Village Senior and Community Center.

November 20 As the City of Fountain Valley Trustee on the Orange County Mosquito and Vector Control Board, participated in the monthly Board Meeting at Orange County Mosquito and Vector Control in Garden Grove. Later, I participated in the Fountain Valley Community Foundation Board Meeting on Zoom.

November 24 Stopped in at the movie for senior citizens at the Center at Founders Village Senior and Community Center. Today’s showing was “The Ballad of Wallis Island - a comedy - 2025”
November 25 Stopped in at the live music for senior citizens, Bobby’s Kool Performance by Perfecto at the Center at Founders Village Senior and Community Center.

December 1 Attended the Special Use Permit Public Hearing at City Hall. The first was for a sober living home at 16945 Helena Circle and it was approved, as it complied with the conditions for consideration. The second one was for a group home at 9165 El Tango Circle and the matter was continued.

December 2 Watched the Orange County Board of Supervisors Meeting on the County’s website.

Council Member Bui
No Report filed

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY/HOUSING

AUTHORITY
Mayor Cunneen adjourned the meeting at 7:32 pm to the next Meeting of the Fountain Valley City Council on December 16, 2025 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
___________________________
Jim Cunneen, Mayor

Attest:
___________________________
Rick Miller, City Clerk

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: December 16, 2025
Members of the City Council
SUBJECT: City of Fountain Valley Six Month Strategic Objectives for September 23, 2025 through March 17, 2026
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
On September 23, 2025, the City Council held a strategic planning session with the executive management team and department managers. The Strategic Plan was then presented to the City Council at the October 7, 2025, City Council Meeting for adoption. Those that were in attendance collaborated to establish the City’s six-month strategic planning objectives for September 23, 2025, through March 17, 2026. The strategic plan has and will continue to serve as a guideline for both the Council and City staff as we work to achieve our goals over the next year. The Strategic Plan goals on the attached spreadsheet have been updated so that the City Council can see the progress that has been made on the action items.

DISCUSSION
During the City’s Strategic Planning session on September 23, 2025, the City Council, executive management team including department managers, discussed the goals that will be worked on for the next six (6) months.

Through the collaborative efforts, City Council and City staff help clearly define the goals and priorities of the City, in which a finalized Six-Month Strategic Objectives Matrix for September 23, 2025, through March 17, 2026, has been prepared for adoption.

FISCAL REVIEW
The fiscal impact has been budgeted in Fiscal Year 2025-26.

PUBLIC NOTIFICATION
Not applicable.

City of Fountain Valley Strategic Plan
December 16, 2025

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
Attorney for the City has reviewed this item.

ALTERNATIVES
Alternative No. 1: Receive and File the six-month strategic objectives matrix for September 23, 2025, through March 17, 2026.

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

RECOMMENDATION
Staff recommends that the City Council approve Alternative No. 1.

Prepared by: Rick Miller, City Clerk
Reviewed by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachment:

1. Six-Month Strategic Objectives Matrix for September 23, 2025, through March 17, 2026

1 CITY OF FOUNTAIN VALLEY

SIX-MONTH STRATEGIC OBJECTIVES
October 7, 2025- March 17, 2025
City of Fountain Valley Vision Statement
Fountain Valley is a safe, inclusive, and desirable community where you can live your best life! City of Fountain Valley Mission Statement
The City of Fountain Valley is a team-driven organization committed to providing excellent service to our community through our core values.

Core Values
Fiscal Stability, Honesty, Integrity and Ethical Behavior, Teamwork, Innovation, Quality of Life, and Excellent Customer Service THREE-YEAR GOAL: ENHANCE THE CULTURE AND ENVIRONMENT OF “A NICE PLACE TO LIVE”

WHEN WHO WHAT STATUS

DONE ON
TARGE
T
REVIS
ED

COMMENTS

1. By January 20,
2026, City Council
Meeting
Deputy City
Manager/Community
Services Director and
Public Works Director
Present an Art on the Box program in collaboration with FVSD, FVCF, and the City. Winning or honorable mention
artists from Fountain Valley schools (K-12) in MWDOC’s
annual Water Awareness Poster Contest may be featured
on City boxes with the vinyl wraps being funded through City Water funds.

X Staff is currently in discussion
with FVSD to create the program.

To be presented to CC in January
2026.

2 THREE-YEAR GOAL: ACHIEVE FISCAL STABILITY BY EVALUATING PROCESSES, AND ATTRACT AND RETAIN

REVENUE PRODUCING BUSINESSES/OPPORTUNITIES

WHEN WHO WHAT STATUS

DONE ON
TARGE
T
REVISE
D

COMMENTS

1. By February
17 , 2026, City
Council Meeting
Fire Chief, Public
Works Director, &
Community Services
Director
Evaluate and present the possibility of a fundraising program for Fire Station No. 1 through donations (i.e. bricks, plaques, pavers etc).

X Staff is assessing options.

2. By February
3, 2026, City Manager
Finance Director Present a plan to initiate and assess the business license operations with HdL or to provide in-house service.

X Department has meet with
software providers to assess
potential business licensing
platforms.

3 THREE-YEAR GOAL: ATTRACT AND RETAIN QUALITY STAFF THROUGH

BEST PRACTICES AND TRENDS

WHEN WHO WHAT STATUS

DONE ON
TARGE
T
REVISE
D

COMMENTS

1. By June 16,
2026, City Council
Meeting
HR Director and
Executive
Management Team
Prepare and present a city-wide recruitment video. X Staff evaluated a vendor for the recruitment video.

2. By
December 16, 2025,
City Council Meeting
Police Chief Initiate an organizational assessment with a consultant to identify opportunities and challenges to improve the Police department’s operational efficiency and morale.

X Discussed consultant options.

4 THREE-YEAR GOAL: MAINTAIN, BUILD, AND MODERNIZE INFRASTRUCTURE TO SUPPORT GROWTH AND

FUTURE NEEDS OF THE CITY

WHEN WHO WHAT STATUS

DONE ON
TARGE
T
REVISE
D

COMMENTS

1. By February
17, 2026, City Council
Meeting
Finance Director, Fire
Chief, & Public Works
Director
Present financial data to fund Fire Station No. 1 and seek directions from the City Council.

X Received approval of AB
364 to submit existing
digital billboard
application, and may
establish an option for
the City Council
consideration to fund the
future fire station 1.

2. By February
3, 2026
IT Director and City
Manager’s Office
Create an internal and external educational campaign to implement new phone numbers for the city facilities.

X IT will work with CM’s
office on a plan.

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: December 16, 2025
Members of the City Council
SUBJECT: City of Fountain Valley Register of Demands for the period of 11/20/2025 to 12/3/2025
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
Attached is the Register of Demands for the City of Fountain Valley to be ratified by the City Council.

DISCUSSION
Pursuant to the State of California’s Government Code 37201 through 37210, the Director of Finance or their designated representative hereby certifies to the accuracy of the following demands and to the availability of funds for payment thereof. Demands paid by the city shall be inspected and ratified by the legislative body on the next available Council agenda. The Finance Department has prepared the attached Register of Demands summarizing the City's payments released since the previous City Council meeting.

FINANCIAL ANALYSIS
The attached Register of Demands represents payments made by the City of Fountain Valley between 11/20/2025 and 12/3/2025 for a total of $1,155,151.73.

ATTORNEY REVIEW
The Attorney for the City reviewed this staff report and concurs with the recommended action.

PUBLIC NOTIFICATION
Not applicable.

Register of Demands
December 16, 2025

ALTERNATIVES
Alternative No. 1: Approve the attached Register of Demands.

Alternative No. 2: Do not approve as presented and provide direction to staff.

RECOMMENDATION
Staff recommends Alternative No. 1 to approve the attached Register of Demands representing payments made by the City of Fountain Valley between 11/20/2025 and 12/3/2025 for a total of $1,155,151.73.

Prepared by: Ryan Smith, Finance Director
Reviewed by: Colin Burns, City Attorney
Approved by: Maggie Le, City Manager
Attachment 1: Register of Demands 11/20/2025 to 12/3/2025.

City Of Fountain Valley
Register of Demands
11/20/2025 - 12/3/2025
Department
Check
Date Vendor Description Doc #
Check/ACH
# Amount
10000000 NON-DEPARTMENTAL
11/26/25 UC REGENTS 2025 LEADERSHIP ACADEMY INTRUCTION / 44518 2317294 27,525.00 11/26/25 LAGUISAN, ADAM DECEMBER 2025 ADPP PAYMENT 44389 5034 4,680.90 11/26/25 DE LA CRUZ, ENRIQUE DECEMBER 2025 ADPP PAYMENT 44391 5030 4,324.79 11/26/25 CASTEEL, BRIAN DECEMBER 2025 ADPP PAYMENT 44393 5027 4,622.77 11/26/25 STANDARD INSURANCE C NOV 2025 - VISION ACTIVE 44428 2317291 2,965.56 11/26/25 STANDARD INSURANCE C NOV 2025 - VISION COBRA 44429 2317292 155.56 11/26/25 MUNICIPAL DENTAL POO DEC 2025 DELTA DENTAL PPO 44497 2317269 12,318.93 11/26/25 MUNICIPAL DENTAL POO DEC 2025 DELTA DENTAL HMO 44498 2317270 1,960.36 11/25/25 FOUNTAIN VALLEY POLI PR PPE251121 - DED 8002 44570 5012 2,350.00 11/25/25 FOUNTAIN VALLEY CRED PR PPE251121 - DED 9500 44571 5010 30,966.60 11/25/25 FOUNTAIN VALLEY FIRE PR PPE251121 - DED 8000 44572 5011 2,749.79 11/26/25 EMPOWER/BENEFITS COR PR PPE251121 - DED 7031, 7032, 7033, 7036 44573 5006 86,310.60 11/26/25 CALIFORNIA STATE DIS PR PPE251121 - DED 6004, 6005, 6007 44574 5007 1,104.35 11/25/25 MISSION SQUARE RET P PLAN #803216 - PR PPE251121 - DED 2013, 2015 44575 5017 2,921.94 11/25/25 MISSION SQUARE RET P PLAN # 800389 - PR PPE251121 - DED 2011 44576 5018 1,046.15 11/25/25 MISSION SQUARE RET P PLAN #800414 - PR PPE251121 - DED 2014 44577 5019 226.75 11/25/25 MISSION SQUARE RET P PLAN # 108536 - PR PPE251121 - DED 2018 44578 5020 576.90 11/25/25 U.S. BANK N.A. PR PPE251121 - DED 7029 & 7030 44579 5021 3,717.47 11/25/25 FVPOA PAC PR PPE251121 - DED 8005 44580 5013 510.00 11/26/25 INTERNAL REVENUE SER PR PPE251121 - DED 1100, 3000 44581 5008 193,708.08 11/26/25 EMPLOYMENT DEVELOPME PR PPE251121 - DED 4000 44582 5009 63,443.73 11/25/25 INTERNATIONAL BRO PR PPE251121 - DED 8003 44583 5014 500.00 11/25/25 INTERNATIONAL BRO PR PPE251121 - DED 8004 44584 5015 625.00 11/25/25 INTERNATIONAL BRO PR PPE251121 - DED 8001 44585 5016 825.00 TOTAL NON-DEPARTMENTAL 450,136.23
10000010 NON-DEPARTMENTAL
11/26/25 MUNICIPAL DENTAL POO DEC 2025 DELTA DENTAL PPO 44497 2317269 11,740.86 11/26/25 MUNICIPAL DENTAL POO DEC 2025 DELTA DENTAL HMO 44498 2317270 395.06 TOTAL NON-DEPARTMENTAL 12,135.92
10010104 ADMIN SERVICES
11/26/25 AT&T MOBILITY 9/27 - 10/26/25 ADMIN CELL PHONES 44101 2317239 194.75 TOTAL ADMIN SERVICES 194.75
10020200 HUMAN RESOURCES
11/26/25 LIEBERT, CASSIDY & W OCT 2025 CLIENT MATTER FO030-00001 44551 5036 2,913.50 11/26/25 LIEBERT, CASSIDY & W OCT 2025 CLIENT MATTER FO030-00042 44552 5037 76.00 11/26/25 LIEBERT, CASSIDY & W OCT 2025 CLIENT MATTER FO030-00041 44553 5038 1,356.00 11/26/25 CONCENTRA MEDICAL CE 11/06 - 11/07/25 HR OCCUPATIONAL MEDICAL 44465 2317251 412.00

11/26/25 CONCENTRA MEDICAL CE 11/18/25 HR OCCUPATIONAL MEDICAL 44496 2317252 724.00 TOTAL HUMAN RESOURCES 5,481.50
10030300 PLANNING
11/26/25 RINCON CONSULTANTS AUG 25 ENVIRONMENTAL SVCS 8550 WARNER 44529 5041 778.50 11/26/25 RINCON CONSULTANTS SEPT 2025 ENVIRONMENTAL SVCS 8550 44544 5041 4,467.50 11/26/25 STRADLING YOCCA CARL LEGAL SERVICES-PLANNING-AFFORDABLE 44493 2317293 37,557.00 11/26/25 STRADLING YOCCA CARL LEGAL SERVICES-PLANNING-AFFORDABLE 44880 2317293 16,852.50 11/26/25 STRADLING YOCCA CARL LEGAL SERVICES-PLANNING-AFFORDABLE 44892 2317293 3,049.50 11/26/25 RINCON CONSULTANTS OCT25 ENVIRONMENTAL SVCS 8550 WARNER 44528 5041 7,099.50 TOTAL PLANNING 69,804.50
10040400 FINANCE
11/26/25 RAMS, LLP OCT 2025 PROGRESS BILLING FOR FY24-25 44231 2317279 25,350.00 11/26/25 SECTRAN SECURITY INC NOV 2025 - ARMORED SERVICES 44492 5044 343.61 11/26/25 CALIFORNIA MUNICIPAL FY 24/25 DIRECT/OVERLAPPING DEBT STMT 44401 2317247 600.00 TOTAL FINANCE 26,293.61
10050500 ENGINEERING
11/26/25 AMAZON NOV 2025 - PW ENG OFFICE SUPPLIES 44217 5023 36.99 TOTAL ENGINEERING 36.99
10050501 TRAFFIC ENGINEERING
11/26/25 ARCADIS U.S. INC SEP 2025 - FV ITS SRVCS FOR T.S. & SCADA 44307 5024 1,446.11 11/26/25 ARCADIS U.S. INC THRU 10/26/25 - FV ITS SRVCS FOR T.S. & 44387 5024 944.00 TOTAL TRAFFIC ENGINEERING 2,390.11
10050503 STREET LIGHTING
11/26/25 YUNEX, LLC OCT 2025 - T.S. MAINTENANCE 44395 5050 3,235.24 11/26/25 YUNEX, LLC OCT 2025 - T.S. CALL OUTS 44398 5050 2,559.76 11/26/25 SO CALIF EDISON CO 9/24-10/22/25 - T.S. ELECTRICITY 44447 2317287 5,680.09 TOTAL STREET LIGHTING 11,475.09
10050550 RIGHTS-OF-WAY
11/26/25 NIEVES LANDSCAPE, IN 10/2025 MEDIAN AND ROW LANDSCAPE 44444 2317273 26,307.57 TOTAL RIGHTS-OF-WAY 26,307.57
10050552 PARK MAINTENANCE
11/26/25 AT&T MOBILITY CELLS, IPADS 44586 2317238 179.48 11/26/25 SO CALIF EDISON CO 10/20/25 to 11/18/25 MCDOWELL PARK (OAK ST) 44548 2317290 3.19 TOTAL PARK MAINTENANCE 182.67
10050553 CONCRETE MAINTENANCE
11/26/25 AMAZON NAME PLATE 44452 5023 16.21
TOTAL CONCRETE MAINTENANCE 16.21
10050554 PAVEMENT MAINTENANCE
11/26/25 AT&T MOBILITY CELLS, IPADS 44586 2317238 175.26 11/26/25 RED WING BUSINESS AD SAFETY BOOTS-T.H. 44567 2317281 255.63 TOTAL PAVEMENT MAINTENANCE 430.89
10050555 STORM DRAIN MAINT
11/26/25 SO CALIF EDISON CO 10/16/25 to 11/16/25 SANDLEWOOD PUMP 44545 2317288 625.82 TOTAL STORM DRAIN MAINT 625.82
10050557 STREET SWEEPING

11/26/25 SCA OF CA, LLC 10/2025 MONTHLY SERVICE SCA 44443 5043 35,407.69 TOTAL STREET SWEEPING 35,407.69
10060600 FIRE SUPPRESSION
11/26/25 CROMWELL III, GORDON PARAMEDIC LICENSE RENEWAL 44499 5029 250.00 11/26/25 BARR, MATTHEW EMT RECERTIFICATION REIMBURSE BARR 44506 5025 162.00 11/26/25 AMAZON JANITORIAL SUPPLIES FIRE STATIONS 44510 5023 135.27 11/26/25 AMAZON OFFICE SUPPLIES FIRE ADMINISTRATION 44511 5023 86.29 11/26/25 AT&T MOBILITY 10.9.25-11.8.25 FIRE BACK UP CELLS 44513 2317241 724.32 11/26/25 AT&T MOBILITY 10.9.25-11.8.25 FIRE CELL PHONES 44514 2317242 184.65 11/26/25 AMAZON OFFICE SUPPLIES FIRE ADMINISTRATION 44516 5023 18.88 TOTAL FIRE SUPPRESSION 1,561.41
10060601 PARAMEDICS
11/26/25 AMAZON JANITORIAL SUPPLIES 44500 5023 51.94
11/26/25 AMAZON JANITORIAL SUPPLIES 44501 5023 54.34
11/26/25 AMAZON FLEXZILLA GARDEN LEAD IN HOSE 44503 5023 15.42 TOTAL PARAMEDICS 121.70
10060602 AMBULANCE SERVICES
11/26/25 BOUND TREE MEDICAL FIRST AID/MEDICAL SUPPLIES 44502 5026 1,580.69 11/26/25 LIFE ASSIST FIRST AID/MEDICAL SUPPLIES 44504 5039 501.57 11/26/25 BOUND TREE MEDICAL FIRST AID/MEDICAL SUPPLIES 44507 5026 1,580.69 11/26/25 BOUND TREE MEDICAL FIRST AID/MEDICAL SUPPLIES 44508 5026 819.86 11/26/25 AT&T MOBILITY 10.9.25-11.8.25 AMBULANCE CELL PHONE 44512 2317240 44.90 11/26/25 WITTMAN ENTERPRISES, 10.1.25-10.31.25AMBULANCE BILLING SERVICES 44517 5049 17,839.82 TOTAL AMBULANCE SERVICES 22,367.53
10060603 FIRE PREVENTION
11/26/25 VCA CODE 10.1.25-10.31.25 FIRE PLAN CHECKS 44505 5047 2,365.00 11/26/25 GRM INFORMATION MANA 10.1.25-10.31.25 FIRE FILE STORAGE 44509 5032 9.00 11/26/25 AT&T MOBILITY 10.9.25-11.8.25 FIRE CELL PHONES 44514 2317242 94.85 TOTAL FIRE PREVENTION 2,468.85
10060605 DISASTER PREPAREDNESS
11/26/25 AT&T MOBILITY 10.9.25-11.8.25 FIRE CELL PHONES 44514 2317242 44.90 TOTAL DISASTER PREPAREDNESS 44.90
10080801 ATHLETICS
11/26/25 REC SVCS REFUND REFUND FOR 742010-A3 44299 2317280 70.00 TOTAL ATHLETICS 70.00
10080810 SENIOR & COMM CENTER
11/26/25 AMAZON SENIOR CENTER OFFICE SUPPLIES 44424 5023 127.14 11/26/25 VERIZON WIRELESS 11/2 - 12/1/25 SENIOR CENTER PHONES 44440 2317296 85.07 11/26/25 AMAZON SPECIAL EVENT SUPPLIES THANKSGIVING 44425 5023 91.28 11/26/25 PRIMO BRANDS SENIOR CENTER WATER - OCT 7 - NOV 6, 2025 44451 2317278 84.70 11/26/25 AMAZON SUPPLIES FOR SENIOR EVENT CRAFT & CHAT 44426 5023 34.56 11/26/25 LEI JES CATERING CATERING FOR 11/14/25 LUNCH & LEARN 44421 5035 113.13 11/26/25 BISHOP, BROOKSLEY VIOLINIST FOR THANKSGIVING LUNCHEON 44418 2317244 200.00 11/26/25 LEI JES CATERING CATERING FOR THANKSGIVING LUNCHEON 44423 5035 1,221.88 TOTAL SENIOR & COMM CENTER 1,957.76

10080820 CONTRACT CLASSES
11/26/25 WEST GROVE VOLLEYBAL INSTRUCTOR PAYMENT 101955 44446 5048 503.30 11/26/25 FOX, CAROLYN J. INSTRUCTOR PAYMENT 100815 44448 5031 739.70 TOTAL CONTRACT CLASSES 1,243.00
11010050 ISF IS ADMIN CAPITAL
11/26/25 MOTOROLA SOLUTIONS MOTOROLA MAINT RENEWAL 10/1/25 - 44289 2317268 92,736.08 11/26/25 RON TURLEY ASSOCIATE RON TURLEY ASSOCIATE SUBSCRIPTION 12/01- 44397 2317283 2,650.36 11/26/25 SURVEYMONKEY INC SURVEYMONKEY SUBSCRIPTION 10/29/25 - 44288 5045 9,000.00 11/26/25 CARAHSOFT TECHNOLOGY PD CELLEBRITE SOFTWARE: QUOTE 52122145 44204 2317249 10,252.32 TOTAL ISF IS ADMIN CAPITAL 114,638.76
11010104 ISF IS
11/26/25 KIM, SCOTT MISAC CONFERENCE 10/19-10/22/25 44314 5033 1,215.82 TOTAL ISF IS 1,215.82
11110000 ISF GB CITY HALL
11/26/25 AT&T MOBILITY CELLS, IPADS 44586 2317238 345.07 11/26/25 DMS FACILITY SERVICE 10/2025 MONTHLY SERVICE 44449 2317254 3,676.12 11/26/25 CALIFORNIA WATERS, L 10/2025 FOUNTAIN SERVICE 44445 2317248 890.00 11/26/25 CLIMATEC, LLC QUARTERLY TSA CLIMATEC ANNUAL TSA 44550 5028 414.09 11/26/25 DMS FACILITY SERVICE 11/2025 MONTHLY SERVICE 44450 2317255 3,676.12 TOTAL ISF GB CITY HALL 9,001.40
11150000 ISF GB CITY YARD
11/26/25 DMS FACILITY SERVICE 10/2025 MONTHLY SERVICE 44449 2317254 2,968.13 11/26/25 AMAZON SPRING CAGE FOR CITY YARD LUNCHROOM 44431 5023 32.20 11/26/25 CLIMATEC, LLC QUARTERLY TSA CLIMATEC ANNUAL TSA 44550 5028 86.67 11/26/25 DMS FACILITY SERVICE 11/2025 MONTHLY SERVICE 44450 2317255 2,968.13 TOTAL ISF GB CITY YARD 6,055.13
11160001 ISF GB FS1
11/26/25 CLIMATEC, LLC QUARTERLY TSA CLIMATEC ANNUAL TSA 44550 5028 69.02 11/26/25 PACIFIC COAST REFRIG HVAC REPAIRS FIRE STATION GYM AC 44464 2317276 503.00 TOTAL ISF GB FS1 572.02
11160002 ISF GB FS2
11/26/25 CLIMATEC, LLC QUARTERLY TSA CLIMATEC ANNUAL TSA 44550 5028 69.01 11/26/25 SO CALIF EDISON CO 10/21/25 to 11/19/25 FIRE STATION NO. 2 44547 2317289 839.60 TOTAL ISF GB FS2 908.61
11170000 ISF GB POLICE DEPARTMENT
11/26/25 DMS FACILITY SERVICE 10/2025 MONTHLY SERVICE 44449 2317254 7,651.77 11/26/25 CLIMATEC, LLC QUARTERLY TSA CLIMATEC ANNUAL TSA 44550 5028 414.09 11/26/25 DMS FACILITY SERVICE 11/2025 MONTHLY SERVICE 44450 2317255 7,651.77 11/26/25 PACIFIC COAST REFRIG HVAC REPAIRS S. MCQUAY POLICE 44463 2317276 1,529.00 TOTAL ISF GB POLICE DEPARTMENT 17,246.63
11180000 ISF GB REC CENTER
11/26/25 DMS FACILITY SERVICE 10/2025 MONTHLY SERVICE 44449 2317254 15,816.57 11/26/25 CLIMATEC, LLC QUARTERLY TSA CLIMATEC ANNUAL TSA 44550 5028 276.06 11/26/25 DMS FACILITY SERVICE 11/2025 MONTHLY SERVICE 44450 2317255 15,816.57 TOTAL ISF GB REC CENTER 31,909.20

11180001 ISF GB SR CENTER
11/26/25 DMS FACILITY SERVICE 10/2025 MONTHLY SERVICE 44449 2317254 5,658.55 11/26/25 CLIMATEC, LLC QUARTERLY TSA CLIMATEC ANNUAL TSA 44550 5028 276.06 11/26/25 DMS FACILITY SERVICE 11/2025 MONTHLY SERVICE 44450 2317255 5,658.55 TOTAL ISF GB SR CENTER 11,593.16
11250001 PW - FLEET MGMT
11/26/25 AT&T MOBILITY CELLS, IPADS 44586 2317238 89.74 11/26/25 MAGNOLIA CAR WASH CAR WASH SEPTEMBER 44381 2317266 347.71 11/26/25 AMAZON OSHA NOTICE SIGNS 44457 5023 29.34
11/26/25 AAA OIL, INC. BULK SHOP OILS 44375 5022 2,030.37 11/26/25 RINCON TRUCK CENTER, STOCK PARTS 44380 2317282 14.05 11/26/25 RINCON TRUCK CENTER, STOCK PARTS 44379 2317282 76.67 11/26/25 MAGNOLIA CAR WASH CAR WASH OCTOBER 44382 2317266 407.66 11/26/25 SC FUELS (CARDS) MONTHLY FUEL CARDLOCK OCTOBER 44390 5042 29,803.45 11/26/25 FACTORY MOTOR PARTS PART FOR UNIT 259 44374 2317257 87.65 11/26/25 RINCON TRUCK CENTER, PART RETURN CREDITS 44378 2317282 (33.19) 11/26/25 RINCON TRUCK CENTER, BATTERY FOR UNIT 8656 44376 2317282 176.09 11/26/25 AMAZON P TOUCH LABEL TAPES 44459 5023 31.47
11/26/25 RED WING BUSINESS AD SAFETY BOOTS-R.R. 44566 2317281 232.72 11/26/25 RINCON TRUCK CENTER, STOCK PARTS 44377 2317282 43.63 11/26/25 AMAZON DRIVER SIDE TAILLIGHT FOR F150 44453 5023 32.49 TOTAL PW - FLEET MGMT 33,369.85
11400411 SELF INSURANCE
11/26/25 TEMPORARY STAFFING PART TIME TEMP EMPLOYEE WE 11/16/25 44410 5046 1,235.76 TOTAL SELF INSURANCE 1,235.76
23030315 CDBG PUBLIC SERVICE
11/26/25 BOYS & GIRLS CLUBS O PSA SUB-RECIPIENT GRANT PER 25-26 ACTION 43659 2317245 2,065.75 TOTAL CDBG PUBLIC SERVICE 2,065.75
27097002 CRIMINAL DIV GRANTS
11/26/25 EFFECTIVE FITNESS CUSTOM TRAINING COURSE 12/9/25-12/12/25 44417 2317256 20,000.00 TOTAL CRIMINAL DIV GRANTS 20,000.00
30095301 CAPITAL IMP - ROAD REHAB
11/26/25 DMS CONSULTANTS INC 8/05-11/07/25 - DESIGN CITY QUADRANT B4 44326 2317253 31,530.00 TOTAL CAPITAL IMP - ROAD REHAB 31,530.00
30095302 CAPITAL IMP - PAVEMENT REHAB
11/26/25 ONWARD ENGINEERING SEP 2025 - DESIGN TALBERT & BUSHARD 44283 2317274 17,333.67 11/26/25 ONWARD ENGINEERING OCT 2025 - DESIGN TALBERT & BUSHARD 44284 2317274 19,104.80 11/26/25 BUCKNAM INFRASTRUCTU OCT 2025 - PMP UPDATE 44229 2317246 2,412.40 TOTAL CAPITAL IMP - PAVEMENT REHAB 38,850.87
50000000 WF NON-DEPARTMENTAL
11/26/25 WALLING, DAVID UTILITY REFUND - FINALED 9/21/25 44530 2317297 126.53 11/26/25 BALTAZAR, ESPERANZA UTILITY REFUND - FINALED 10/1/25 44531 2317243 20.65 11/26/25 KENNEDY, KIP UTILITY REFUND - FINALED 10/1/25 44532 2317264 157.40 11/26/25 LE, TRACY UTILITY REFUND - FINALED 10/16/25 44533 2317265 23.37 11/26/25 NGO, SANDY UTILITY REFUND - FINALED 10/19/25 44534 2317271 54.93

11/26/25 NGUYEN, AN UTILITY REFUND - FINALED 9/25/25 44535 2317272 61.46 11/26/25 PACIFIC CITY PROPERT UTILITY REFUND - FINALED 10/22/25 44536 2317275 33.73 11/26/25 FOGERTY, KARIN UTILITY REFUND - FINALED 10/27/25 44537 2317259 23.40 11/26/25 JOYA CAMPOS, IXAR UTILITY REFUND - FINALED 11/4/25 44538 2317263 42.41 11/26/25 CLARK, DAVEY UTILITY REFUND - FINALED 11/3/25 44539 2317250 30.75 11/26/25 PHAN, VICTORIA UTILITY REFUND - FINALED 10/30/25 44540 2317277 19.01 11/26/25 YOUNAN, ROMANY UTILITY REFUND - FINALED 10/30/25 44541 2317299 10.29 11/26/25 GARDNER, BARBARA UTILITY REFUND - FINALED 11/3/25 44542 2317260 46.93 11/26/25 MAHER KIRMIZ UTILITY REFUND - FINALED 10/29/25 44543 2317267 33.73 TOTAL WF NON-DEPARTMENTAL 684.59
50040403 WF UTILITY BILLING
11/26/25 TEMPORARY STAFFING TEMP STAFF - FINANCE 11/10-11/16/25 44422 5046 1,596.54 TOTAL WF UTILITY BILLING 1,596.54
50050570 WF WTR PROD. OPNS
11/26/25 AT&T MOBILITY CELLS, IPADS 44586 2317238 887.12 11/26/25 AMAZON PLASTIC CLIPS FOR VAPORTIGHT COVERS 44454 5023 20.23 11/26/25 AMAZON POST IT MESSAGE FLAGS-SIGN HERE 44461 5023 22.10 11/26/25 AMAZON RUBBER BANDS, PENS, HIGHLIGHTERS, POST 44462 5023 86.28 11/26/25 AMAZON STAPLE REMOVERS 44458 5023 7.59
11/26/25 VERIZON WIRELESS 9/26/25-10/25/25 WATER CELL 44318 2317295 754.95 11/26/25 AMAZON 3 PACK OF PLATE STANDS FOR TROPHY 44460 5023 17.89 11/26/25 HARRINGTON INDUSTRIA CHEMICAL PUMP PARTS 44560 2317261 2,576.74 11/26/25 AMAZON TONER 44456 5023 155.15
11/26/25 AMAZON TONER 44455 5023 158.38
11/26/25 AMAZON LIGHT BULBS 44412 5023 10.86
11/26/25 SO CALIF EDISON CO 10/03/25 to 11/02/25 RES# 2 & WELLS 44415 2317285 104,125.52 11/26/25 YO FIRE SHUT OFF HANDLES 44890 2317298 120.83
11/26/25 AQUA-METRIC SALES METER FOR WELL 12 44882 2317237 1,591.95 TOTAL WF WTR PROD. OPNS 110,535.59
50050571 WF DISTRIBUTION SYSTEM
11/26/25 FERGUSON ENTERPRISES SERVICE COPPER 44408 2317258 2,818.65 11/26/25 AMAZON SAFETY APPAREL 44435 5023 139.80
11/26/25 AMAZON SAFETY APPAREL 44436 5023 175.60
11/26/25 YO FIRE SERVICE COPPER 44364 2317298 3,066.75
TOTAL WF DISTRIBUTION SYSTEM 6,200.80
50050572 WF WTR QUAL & TREATMENT
11/26/25 SIERRA ANALYTICAL LA WATER QUALITY TESTING SERVICES FY 25/26 44494 2317284 4,980.00 TOTAL WF WTR QUAL & TREATMENT 4,980.00
50050573 WF CUSTOMER SERVICE
11/26/25 AMAZON IPHONE 15 AND 14 PLUS CASES 44434 5023 23.08 TOTAL WF CUSTOMER SERVICE 23.08
50095001 WATER FUND
11/26/25 MKN OCT 2025 - FY24/25 WATER MASTER PLAN & 44308 5040 31,272.25 TOTAL WATER FUND 31,272.25
50150580 SF SEWER MAINTENANCE

11/26/25 AT&T MOBILITY CELLS, IPADS 44586 2317238 205.83 11/26/25 SO CALIF EDISON CO 10/14/25 to 11/12/25 SEWER LIFT STATION 44416 2317286 496.39 TOTAL SF SEWER MAINTENANCE 702.22
50195000 SEWER FUND
11/26/25 JIG CONSULTANTS 8/04-8/31/25 SEWER REHAB REPLACEMENT 44280 2317262 8,209.00 TOTAL SEWER FUND 8,209.00
TOTAL $1,155,151.73

CITY OF FOUNTAIN VALLEY

CITY COUNCIL/SUCCESSOR AGENCY TO THE

FOUNTAIN VALLEY AGENCY FOR COMMUNITY

DEVELOPMENT AGENCY/HOUSING

AUTHORITY ACTION REQUEST
To: Honorable Mayor/Agency Chair/ Agenda Date: December 16, 2025 Authority Chair and Council/
Agency/Authority Members
SUBJECT: Housing Authority and Housing Successor Agency Annual Report - FY 2024/25 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
This Annual Report of the Fountain Valley Housing Authority (Housing Authority) and Fountain Valley Housing Successor Agency (Successor Agency) is prepared under the California Health and Safety Code (HSC), Division 24, Parts 1.8 and 1.85 (Dissolution Law), in particular Section 34176.1 as the housing successor, and under the California Housing Authorities Law, HSC Section 34200, et seq. (HAL), in particular Section 34328 as a housing authority (together, Report).

Senate Bill 341, which became law on January 1, 2014, requires "housing successors" – cities, counties, and housing authorities that have taken over housing functions for former redevelopment agencies, to prepare an annual report of housing activities and expenditures during the year and provide it to the Successor Agency governing body within six (6) months after the end of each fiscal year. (Attachment #1).

This Report satisfies the requirements under both HSC Sections and details the Housing Authority’s activities during Fiscal Year 2024-2025 (FY 24-25), including information required about the Low- and Moderate-Income Housing Asset Fund (LMIHAF) and other information under Section 34176.1(f). This annual report covers July 1, 2024, through June 30, 2025.

Housing Authority and Housing Successor Agency Annual Report FY 2024/25 December 16, 2025

DISCUSSION
This Report includes information prepared by City staff on behalf of the Housing Authority/Successor Agency and information contained within the financial records of LMIHAF for FY 24/25. The Report is organized into sections I. through XIV. inclusive, and includes all sections required by statute.

A detailed description of the Housing Successor activities undertaken during FY 24/25, as well as the state of the LMIHAF are included in the attached report, with a brief summary provided below:
 Total deposits into the LMIHAF of $1,253,198 consisted of principal and interest payments on outstanding First-Time Homebuyer, Rehabilitation, and Affordable Housing project loans.
 Total expenditures from the LMIHAF of $480,077 consisted of administration and monitoring costs, housing pre-development expenditures (Prado), and the operating costs for the Central Cities Navigation Center (CCNC).
 Total statutory value of assets owned by the Housing Successor of $8,280,729 consisting of First-Time Home Buyer and Rehabilitation loans to residents and the Related Companies California (TRCC) loan for the Prado Affordable Family Homes.  The cash balance of the LMIHAF at year end was $9,396,096.

The Housing Successor must perform three (3) tests annually to ensure compliance with state statutes. These tests include the Extremely Low- and Low-Income Tests, the Senior Housing Test, and the Excess Surplus Test. Additional details are included in the attached report.  Extremely Low- and Low-Income Tests - The current test period for FY 24/25 is July 1, 2019, to June 30, 2024, and the Housing Successor did not spend any funds on the development of rental housing during this reporting period. However, during the last reporting period, the Housing Successor expended 27% of funds from the LMIHAF on ELI households, which fell below the required 30% threshold. There is no penalty for non-compliance, however, because of this deficit, the Housing Successor must ensure that at least 50% of the remaining LMIHAF funds expended in each fiscal year are used for the development of rental housing for ELI households until the housing successor demonstrates compliance in an annual report. Funds spent on the CCNC, and fund administration are exempt from this requirement.
 Senior Housing - This test requires the Housing Successor to ensure that no more than 50% of City and Successor Agency funds are spent on units for senior citizens over the prior 10-year period. The Housing Successor has not spent any funds on senior housing during the 10-year test period, thereby meeting compliance requirements.

Housing Authority and Housing Successor Agency Annual Report FY 2024/25 December 16, 2025

 Excess Surplus - Excess Surplus is an unencumbered amount in the account that exceeds the greater of $1 million or the aggregate amount deposited into the account during the preceding four fiscal years, whichever is greater. $6,209,501 was deposited into the account in the four (4) previous fiscal years, and the FYE cash balance in the account was $9,396,096, which is an excess surplus of $3,186,595. After encumbering the projected 10-year costs of $3,442,800 for the operation of the Central Cities Navigation Center (CCNC), the excess surplus will be eliminated.

This report must be provided to the City Council, as the governing body, and to the Housing Authority Commission by the December 31, 2025, deadline, under Section 34176.1(f), and, upon their joint review and action to file the Report, it will be posted on the City’s website at www.fountainvalley.gov. A copy will be forwarded to the California Department of Housing and Community Development and the Governor’s Office as required by State Law.

FISCAL REVIEW
No Fiscal Impact; however, failure to file this report as required by Section 33080.1 of the California Health and Safety Code could result in a major audit violation. The fine for a major audit violation can be up to $10,000.

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

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

ALTERNATIVES:

Alternative No.1: Receive and file the Housing Authority and Housing Successor Agency Annual Report, authorize staff to forward the report to the California Department of Housing and Community Development and the Governor’s Office and post the Report on the City’s website by December 31, 2025.

Alternative No. 2: Provide direction to Staff to amend the report as deemed necessary and authorize staff to forward the report to the California Department of Housing and Community Development and the Governor’s Office and post the Report on the City’s website by December 31, 2025.

RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1: Receive and file the Housing Authority and Housing Successor Agency Annual Report; authorize staff to forward the report to the California Department of Housing and Community Development and the Governor’s Office and post the Report on the City’s website by December 31, 2025.

Housing Authority and Housing Successor Agency Annual Report FY 2024/25 December 16, 2025

Prepared by: Ashlyn Newman, Neighborhood Improvement Manager Reviewed by: Omar Dadabhoy, Deputy City Manager/Community Development Director
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, Executive Director/City Manager Attachments:

1. Fountain Valley Housing Authority and Fountain Valley Housing Successor Agency Annual Report for FY 2024/25

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 1

FOUNTAIN VALLEY HOUSING AUTHORITY ANNUAL REPORT

AND FOUNTAIN VALLEY HOUSING SUCCESSOR ANNUAL REPORT
FOR FISCAL YEAR 2024-25 PURSUANT TO CALIFORNIA
HEALTH AND SAFETY CODE SECTIONS 34176.1 AND 34328
This Annual Report of the Fountain Valley Housing Authority (Housing Authority) is prepared under the California Health and Safety Code (HSC), Division 24, Parts 1.8 and 1.85 (Dissolution Law), in particular Section 34176.1 as the housing successor, and under the California Housing Authorities Law, HSC Section 34200, et seq. (HAL), in particular Section 34328 as a housing authority (together, Report). The Dissolution Law and HAL respectively require preparation of an annual report on the housing successor and the housing authority’s activities for the prior fiscal year. This Report details the Housing Authority’s activities during Fiscal Year (FY) 2024-25 and is intended to satisfy the requirements under both HSC Sections 34176.1 and 34328. More specifically, this Report details the Housing Authority’s activities for FY 2024-25, including the information required about the Lowand Moderate-Income Housing Asset Fund (LMIHAF) and other information under Section 34176.1(f). A copy of the Report, in this draft form, has been provided to the City Council, as governing body, and to the Housing Authority by December 31, 2025, under Section 34176.1(f), and, upon their joint review and action to file the Report, it will be posted on the City’s website at www.fountainvalley.gov, with a copy forwarded to California Department of Housing and Community Development and the Governor’s Office as required by State Law.

This Report includes information prepared by City staff on behalf of the Housing Authority and information contained within the financial records of the Low- and Moderate-Income Housing Asset Fund for FY 2024-25. This Report conforms with, and is organized into sections I. through XIV., inclusive, under HSC Section 34176.1(f) of the Dissolution Law and Section 34328 of the HAL.

I. Amount Received Pursuant to Section 34191.4(b)(3)(A): This section provides a total amount of funds received pursuant to Section 34191.4(b)(3)(A).

II. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.

III. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS, and amounts allocable to Section 34191.4 deposits, must be distinguished from the other amounts deposited.

IV. Description of Expenditures from LMIHAF: This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized among administration for monitoring and preserving covenanted housing units, homeless prevention and rapid rehousing, and development of housing.

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 2 V. Statutory Value of Assets Owned by Housing Successor In LMIHAF: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables and the sum of these two amounts.

VI. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used.

The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing.

VII. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project.

VIII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project.

IX. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor’s plans to meet unmet obligations, if any.

X. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for five-year period, with the first time period beginning January 1, 2014, and whether the statutory thresholds have been met.

XI. Senior Housing Test: This section provides the percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report the ten-year period reviewed is July 1, 2014 - June 30, 2024.

XII. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus.

XIII. Inventory of Home Ownership Units: This section provides an inventory of homeownership units assisted by the former Agency or FVHA as Housing Successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of moneys from the Low- and Moderate-Income Fund per Section 33334.3 (f).

XIV. Housing Authority Annual Report: Housing Authority’s activities for FY 2024-25 pursuant to HSC Section 34328.

In addition, this report and the former redevelopment agency’s pre-dissolution Implementation Plans are to be made available to the public on the City’s website www.fountainvalley.gov.

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 3 I. AMOUNT RECEIVED PURSUANT TO SECTION 34191.4(b)(3)(A):

No funds were received pursuant to Section 34191.4(b)(3)(A).

II. AMOUNT DEPOSITED INTO LMIHAF
A total of $1,253,198 was deposited into the LMIHAF during the Fiscal Year as shown in Table 1 below. Of the total funds deposited into the LMIHAF, $0 were held for items listed on the ROPS. The deposits are allocated as follows:

SOURCE AMOUNT
1st Time Homebuyer Monthly Loan Repayment (Principal) $ 67,139 1st Time Homebuyer Monthly Loan Repayment (Interest) $ 21,662 1st Time Homebuyer Monthly Client Service Charge $ 512
1st Time Homebuyer Monthly Loan (Equity Share Payoff) $ 61,977 Housing Rehab Monthly Loan Repayment (Principal) $ 41,406 Housing Rehab Monthly Loan Repayment (Interest) $ 14,416 Prado – Harbor Loan Repayment (Principal) $ 726,241
Prado – Harbor Loan Repayment (Interest) $ 23,705
Misc. Received Interest $ 289,960
Misc. Fees $ 0
Misc. Other Income (Prado Monitoring Fee) $ 6,180
Total LMIHAF Deposits $1,253,198
Table 1
III. ENDING BALANCE OF LMIHAF
At the close of the Fiscal Year, the ending available cash balance in the LMIHAF was $9,396,096. The balance is the cash balance minus the balance in accounts payable.

IV. DESCRIPTION OF EXPENDITURES FROM LMIHAF

Table 2 below shows a description of expenditures from the LMIHAF by category:

SUBJECT AMOUNT
Monitoring & Administration $ 182,512
Homeless Prevention & Rapid Rehousing Services Expenditures (Maximum allowable per statute in FY 24/25 is $375,000) $ 297,360
Housing Development Expenditures for pre-development expenses. $ 205 Total Expenditures $ 480,077
Table 2
The Housing Successor is permitted to spend the greater of $263,100, or five percent of the value of the Housing Assets Portfolio ($8,280,729 in Section V), on Monitoring and Administration. Five percent of the value of the Housing Assets Portfolio is $414,036. The

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 4 Successor Agency spent a total of $182,512 for Monitoring and Administration costs during the Fiscal Year, which is less than the maximum allowed of $414,036, thereby making the Successor Agency compliant with maximum expenditure limits.

Homeless Prevention & Rapid Rehousing Services Expenditures reflect the operation cost for the Central Cities Navigation Center. Beginning January of 2025, jurisdictions are allowed to use up to $500,000 of LMIHAF funds a year towards this category. Previously it was $250,000. For FY 24/25, a maximum of $375,000 may be used for operations of the CCNC. $297,360 was expended on homeless prevention and rapid rehousing services in compliance with maximum expenditure caps. In FY 25/26, the full amount of $500,000 per year may be used to fund CCNC operations.

Housing Development Expenditures reflected staff costs in wrapping up the development of the Prado 50-unit affordable housing project that opened in 2022.The final TCAC audit was completed at the end of 2024. As of January 2025, the administrative and monitoring costs related to the project are reflected in Monitoring and Administration.

V. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a) (2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.

The Housing Successor does not own any real property. Table 3 below shows the statutory value of loans owned by the Housing Successor.

Asset Category – Loans and Accrued Interest Receivable Statutory Value
1st Time Home Buyer Loans (5 Loans) $ 392,659
Home Improvement Loans (9 Loans) $ 160,170
Acquisition & Development Loans (TRCC) $ 7,418,098
Accrued Interest Receivable * (TRCC Development Loan) $ 309,802 Total Statutory Value of Loans Held by Housing Successor $ 8,280,729 Table 3

VI. DESCRIPTION OF TRANSFERS

The Housing Successor did not make any transfers were made during this reporting period.

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 5 VII. PROJECT DESCRIPTIONS

The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS.

VIII. STATUS OF COMPLIANCE WITH SECTION 33334.16
This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project. The following provides a status update on the project(s) for property or properties that were acquired prior to February 1, 2012, and compliance with the five-year period:
 The Housing Successor does not own any properties acquired prior to February 1, 2012.

The following provides a status update on the project(s) for property or properties that have been acquired by the Housing Successor using LMIHAF on or after February 1, 2012:
 The Housing Successor does not own any properties acquired on or after February 1, 2012.

IX. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 Replacement Housing:

According to the FY2010/11-FY2014/15 Implementation Plan for the former redevelopment agency, no Section 33413(a) replacement housing obligations were transferred to the Housing Successor.

Inclusionary/Production Housing:

According to the FY2010/11-FY2014/15 Implementation Plan for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor.

The former redevelopment agency’s Implementation Plans are posted on the City’s website at www.fountainvalley.org
X. INCOME TEST

This section provides the information required by Section 34176.1(a)(3)(A) or a description of expenditures by income restriction in five-year reporting increments and whether the statutory thresholds have been met. The first five-year period was January 1, 2014, to June 30, 2019. The second five-year reporting period is July 1, 2019, to June 30, 2024.

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 6 Section 34176.1(a)(3)(B) requires that for each reporting period the Housing Successor must ensure that at least 30% of the LMIHAF be expended for development of rental housing affordable to, and occupied by, households earning 30% or less of the AMI (Extremely Low).

No more than 20% of the LMIHAF may be expended for the development of housing affordable to, and occupied by, households earning 60% to 80% of the AMI (Low), during each reporting period.

If the Housing Successor fails to comply with the Extremely Low-Income requirement in any five-year report, then they shall ensure that at least 50% of the remaining LMIHAF funds expended in each fiscal year following the latest fiscal year following the five-year report, be expended for the development of rental housing for Extremely Low-Income households until they are in compliance in an annual report.

During the 2014-2019 reporting period, the Housing Successor expended 27% from the LMIHAF on Extremely Low-Income households and 7% on Low Income households.

Because the expenditures for Extremely Low-Income households fell below the 30% threshold, the Housing Successor must ensure that at least 50% of the remaining LMIHAF funds expended in each fiscal year are used for the development of rental housing for Extremely Low-Income households, until the housing successor demonstrates compliance in an annual report.

During the 2019-2024 reporting period, the Housing Successor only spent funds that were exempt from the Income Test by statute. This includes administration and monitoring, homeless prevention, pre-development costs (Related) and the acquisition, development, and operating costs for the CCNC.

Because the Housing Successor did not spend funds on rental housing development in this reporting period, they were not able to bring the LMIHAF into compliance. This means the requirements of the previous cycle remain.

There is no penalty for non-compliance however the Housing Successor must ensure the next affordable rental housing project meets the required extremely low-income criteria.

XI. SENIOR HOUSING TEST
The Housing Successor is to calculate the percentage of units of deed-restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment agency, and/or the city within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted by the Housing Successor, the former redevelopment agency and/or City within the same time period.

If this percentage exceeds 50%, then the Housing Successor cannot expend future funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 7 to 50% of the total amount of deed-restricted rental units.

Table 4 below provides the Housing Successor’s Senior Housing Test for the 10-year period of 7/1/2014-6/30/2024. The Housing Successor currently has no restriction on senior housing expenditures.

Senior Housing Test 10 Year Test – July 1, 2015 - June 30, 2025 # of Assisted Senior Rental Units 0
# of Total Assisted Rental Units 50 (TRCC – Prado in FY 20-21) Senior Housing Percentage 0%
Table 4
XII. EXCESS SURPLUS TEST
Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the Housing Successor’s preceding four Fiscal Years, whichever is greater. The following provides the Excess Surplus test for the preceding four Fiscal Years:

Excess Surplus Calculation
Greater of:
 Base Amount of $1,000,000
 Or Four Years of Deposits
FY 21/22 $ 783,915
FY 22/23 $ 612,466
FY 23/24 $ 3,559,922
FY 24/25 $ 1,253,198
Total of Deposits $ 6,209,501
The greater amount between $1,000,000 and $6,209,501 = $ 6,209,501 Account Cash Balance $ 9,396,096
Excess Surplus (Account balance – Total of deposits) $ 3,186,595 Amount encumbered for CCNC operation thru FY33/34 $ 3,442,800 Excess Surplus None- See Narrative
Table 5
As Table 5 reflects, $6,209,501 was deposited into the LMIHAF account in the four previous fiscal years. Section III shows that the year-end cash balance in the LMIHAF account is $9,396,096 which reflects an excess surplus of $3,186,595. However, as noted in previous annual reports, the excess surplus will be eliminated by the encumbered operating costs of an estimated $3,442,800 remaining for the operation of the CCNC over the ten–year period (FY 24/25 – FY 33/34) approximating an annual 5% escalation per year. After encumbering this projected amount, the cash balance of the LMIHAF would be $5,953,296, which is

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 8 less than the 4-year deposit total of $6,209,501 thus eliminating the excess surplus.

Additionally, the Housing Successor has 52 years of monitoring remaining on 50 affordable rental units, 34 years remaining on 156 affordable rental units, 38 years remaining on 14 affordable rental units, 26 years remaining on 54 for sale affordable units along with several individual loans with various end dates. Because there is no other funding source to pay for the staff costs to carry out these responsibilities, excess surplus will be further reduced by these annual costs.

XIII. INVENTORY OF HOME OWNERSHIP UNITS
This section provides an inventory of homeownership units assisted by the former Agency or FVHA as Housing Successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of moneys from the Low- and Moderate-Income Fund per Section 33334.3 (f).
(A) As of June 30, 2024, the total number of homeownership units currently assisted by the former Agency that are subject to covenant or restrictions is 58 units. i. This includes 54 Low and Moderate-Income Senior condos located at Liberty at Founder’s Village and four First-Time Home Buyer Loans on properties throughout the city.
(B) During the reporting year, 1 unit were lost from the portfolio. One First-Time Homebuyer Loan was paid off.
(C) A total of $0 was returned to the Housing Successor as a part of an adopted program that protects the former redevelopment agency’s investment of moneys from the LMIHAF fund.
(D) The FVHA/Housing Successor has existing consulting agreements with AmeriNat Loan Services relating to certain, but not all, aspects of administration of the former Agency’s Single-Family Rehabilitation and First Time Homebuyer Program. These consulting services include oversight and assistance with amortized loan payments, tracking and calculation of loan balances in the event of payoff, and other administrative activities related to outstanding loans.

In addition, FVHA utilizes Stradling, Yocca, Carlson and Rauth as Special Legal Counsel to assist staff with legal issues and Keyser Marston Associates for the provision of financial analysis for existing projects as well potential future projects.

XIII. Additional Information about Fountain Valley Housing Authority’s Activities for FY 2024-25 subject to HSC 34328

FOUNTAIN VALLEY HOUSING AUTHORITY AND HOUSING SUCCESSOR ANNUAL REPORT 9 Development, Rehabilitation or Finance of Housing Projects The Housing Authority became the Successor Housing Agency on February 1, 2012. Since the passage of SB341, the allowable use of former redevelopment funds is generally restricted to administration of previously held assets, the production of rental units for low-income persons, and providing services for the unhoused population.

In 2022, the city entered into a Memorandum of Understanding (MOU) with the cities of Westminster and Garden Grove, and the County of Orange for site acquisition, development, and operation of the Central Cities Navigation Center (CCNC) to address homelessness and implement the County’s Continuum of Care in the partner cities. CCNC operation costs for FY 24/25 was $297,360.

The Housing Authority also used funds for annual administrative functions that included monitoring affordable housing covenants, managing the housing loan portfolio, legal services, and minimal project related costs associated with the development of the 50-unit affordable housing project, Prado Family Homes with The Related Companies California. The project was fully leased and occupied in June 2022. Permanent financing is now in place however minimal development costs were incurred prior to the completion of the final California Tax Credit Allocation Committee (CTCAC) audit in December 2024.

Terminations of Tenancies
The Housing Authority does not own or operate any rental properties; therefore, has not terminated any tenancies.

Bonds
The Housing Authority did not issue any bonds in FY 2024-25.

Section 8
In 2011, the Housing Authority passed a resolution to authorize the Orange County Housing Authority to continue to provide Section 8 (Housing Choice Vouchers) in the City of Fountain Valley.

Loans
No loans were made in FY 2024-25.

Land
The Housing Authority does not own any land.

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: December 16, 2025
Members of the City Council
Subject: Introduction and First Read: Code Amendment No. 25-05 – An Amendment to Fountain Valley Municipal Code to Add Sections 21.09 and 21.67 and Amend Section 21.08 Regarding SB 9 Two-Unit Developments and Urban Lot Splits 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 September 16, 2021, Governor Newsom signed Senate Bill (SB) 9 into law. Effective January 1, 2022, SB 9 added Sections to 66585.21 and 66411.7 to the Government Code.

Section 65852.21 requires cities to consider a proposed housing development containing no more than two (2) residential units within a single-family residential zone ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements. Section 66411. 7 requires local agencies to ministerially approve a parcel map for an "urban lot split" that meets certain requirements.

Both statutes permit the City to impose objective zoning, subdivision, and design standards on such projects as long as those standards would not have the effect of physically precluding the construction of up to two (2) units on a lot or physically preclude either of the two (2) units from being at least 800 square feet in floor area.

At the Planning Commission meeting on October 8, 2025, the Planning Commission voted 5-0, approving Resolution No. 25-13 recommending the City Council approve Code Amendment No. 25-05. Staff recommend that the City Council conduct a public hearing and introduce the attached Ordinance approving Code Amendment No. 25-05 to add Sections

21.09 (SB9 two-unit residential developments and urban lot splits) and 21.67 and amend Section 21.08.

DISCUSSION
On September 16, 2021, Governor Newsom signed Senate Bill (SB) 9 into law. Effective January 1, 2022, SB 9 added Sections 66585.21 and 66411.7 to the Government Code.

Section 65852.21 requires cities to consider a proposed housing development containing no

Code Amendment No. 25-05
December 16, 2025

more than two (2) residential units within a single-family residential zone ministerially, without discretionary review or hearing, if the proposed housing development meets specific requirements. Section 66411. 7 requires local agencies to ministerially approve a parcel map for an "urban lot split" that meets specific requirements. Both statutes permit the City to impose objective zoning, subdivision, and design standards on such projects as long as those standards would not have the effect of physically precluding the construction of up to two (2) units on a lot or physically preclude either of the two units from being at least 800 square feet in floor area. The proposed text amendment would establish objective development standards for proposed SB 9 two-unit residential developments and urban lot splits and establish procedures for ministerial review consistent with these new State laws.

Additionally, the Subdivision Map Act regulates the design and improvement of parcel maps in the City. Currently, the subdivision process is a discretionary action by the City’s Subdivision Committee or Planning Commission, depending on the type of subdivision; however, SB-9 now requires the City to ministerially approve a parcel map for an urban lot split that meets the specified criteria.

As part of the ministerial review of the urban lot split, the City is limited to imposing objective subdivision standards, and no right-of-way dedications or construction of offsite improvements can be required. Easements required for the provision of public services and facilities may be imposed. All changes have been approved by Planning Commission on October 8, 2025 (attachment #4).

Summary of Key Provisions for SB9 Two Unit Development
 SB9 projects must now be allowed in all residential zones with some limitations.  Total floor area of each new primary dwelling unit developed as part of an SB 9 twounit residential development or on a lot created through an urban lot split shall not exceed 800 square feet.
 Each new primary dwelling unit shall be one story, constructed at ground level, and should not be more than 16 feet in height.
 Except as otherwise allowed by state law, a minimum building separation of ten (10) feet shall be maintained between all detached structures on a lot, including all residential units, garages, and accessory structures.
 The maximum lot coverage shall not exceed 60%.
 Each new primary dwelling unit shall provide, at a minimum, a continuous private recreation area of 225 square feet with minimum interior dimensions of 10 feet.  Any new additional dwelling unit must match the existing primary dwelling unit in exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof.
 No window or door of a dwelling that is constructed on the lot may have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight.  Each new primary dwelling unit shall provide a minimum 200 cubic feet of individually enclosed, weatherproofed, and lockable private secure storage space.  Each new dwelling unit shall have an independent laundry space.  At least 30 business days before starting any construction of a two-unit project, the property owner must give written notice to all the owners of record of each of the

Code Amendment No. 25-05
December 16, 2025

adjacent residential parcels.

Summary of Key Provisions for Urban Lot Splits
 An urban lot split must conform to all applicable objective requirements of the Subdivision Map Act.
 The parcel map for an urban lot split must subdivide an existing lot to create no more than two new lots of approximately equal lot area, provided that one lot shall not be smaller than 40 percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than 1,200 square feet.  The city engineer has the authority to interpret and establish guidance and procedures for the processing, approving, and finalizing parcel maps for urban lot splits, which are consistent with state and local law.
 The owner must enter into an easement agreement with each utility/public-service provider to establish easements that are sufficient for the provision of public services and facilities to each of the resulting lots.
 The proposed lot split must adjoin the public right-of-way.  The resulting lot split must have frontage on the public right-of-way of at least 20 feet.  All access corridors shall be kept free and clear of building or structures of any kind except for lawful fences and underground or overhead utilities.  Each resulting lot must be developed in accordance with improvement plans processed concurrently with the parcel map application and approved by the city, showing the location and dimensions of all structures, drive aisles, parking areas, pedestrian pathways, and other improvements proposed to be constructed or to remain on each lot.
 Approval of a parcel map for an urban lot split shall be subject to the city’s approval of such related improvement plans and all related entitlements or other approvals required by this code. Any proposed development on one of the lots that is inconsistent with or not shown on the improvement plans approved concurrently with the urban lot split shall be subject to review and approval by the city in accordance with the applicable requirements of this code.

Summary of Key Deed Restrictions
Prior to approval of a parcel map for an urban lot split and/or the issuance of a building permit for the development of an SB 9 two-unit residential development, the owner(s) of record of the property shall provide the Director a copy of a covenant agreement, declaration of restrictions, or similar deed restriction (“deed restriction”) recorded against the property which is in a form prepared by and/or acceptable to the Director, and that does each of the following:
 Any proposed dwelling unit on the property shall be for a term longer than 30 consecutive days.
 Expressly prohibits any non-residential use of the lot.  Expressly prohibits primary dwelling units located on the same lot from being owned or conveyed separately from one another.
 Expressly requires all fee interests in each lot and all dwellings to be held equally and undivided by all individual owners of the lot.

Code Amendment No. 25-05
December 16, 2025

 Expressly prohibits condominium airspace divisions and common interest developments on the property.
 States that the property was formed and/or developed pursuant to the provisions of this chapter and is therefore subject to the city regulations set forth in this chapter, including all applicable limits on dwelling size and development.  Expressly prohibits more than two (2) dwelling units of any kind from being constructed or maintained on a lot that results from an urban lot split.

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

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

ENVIRONMENTAL IMPACT REVIEW
The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures. CA 25-05 is not subject to review under CEQA pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment). CA 25-05 to add Fountain Valley Municipal Code Sections 21.09 (SB 9 two-unit residential developments and urban lot splits) and 21.67 and amend Section 21.08.

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. 25-05 to add Fountain Valley Municipal Code Sections 21.09 (SB 9 two-unit residential developments and urban lot splits) and 21.67 and amend Section 21.08.

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. 25-05 to add Fountain Valley Municipal Code Sections 21.09 (SB 9 two-unit residential developments and urban lot splits) and 21.67 and amend Section 21.08.

Alternative No. 3: Continue for further discussion.

Code Amendment No. 25-05
December 16, 2025

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. 25-05 to add Fountain Valley Municipal Code Sections 21.09 (SB 9 two-unit residential developments and urban lot splits) and 21.67 and amend Section 21.08 (Attachment #4).

Prepared By: Ron Vargas, Associate Planner
Reviewed by: Omar Dadabhoy, Community Development Director Approved by: Maggie Le, City Manager
Attachments: 1. Ordinance for Code Amendment No. 25-05

2. Notice of Exemption

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ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN VALLEY, CALIFORNIA, APPROVING CODE AMENDMENT NO. 25-13
AMENDMING TITLE 21 (DEVELOPMENT CODE OF THE FOUNTAIN
VALLEY MUNICIPAL CODE TO ADD SECTION 21.09 (SB 9 TWOUNIT RESIDENTIAL DEVELOPMENTS AND URBAN LOT SPLITS) AND 21.67 AND AMEND SECTION 21.08
WHEREAS, California Senate Bill 9 enacted Government Code Sections 65852.21 and 66411.7? and amended Section 66452.6, requiring cities to allow qualifying two-unit residential developments and urban lot splits on parcels zoned for single family residential use, subject to specified standards; and WHEREAS, City Council desires to amend Title 21 of the Fountain Valley Municipal Code to add Chapter 21.09 (SB 9 Two-Unit Residential Developments and Urban Lot Splits) and make related amendments to the Development Code to ensure compliance with State Law;
WHEREAS, Article 11, Section 7 of the California Constitution authorizes the City of Fountain Valley (“City”) to make and enforce within its limits all ordinances and regulations not in conflict with general laws; and WHEREAS, staff have researched SB 9 ordinances from surrounding cities such as Westminster, Santa Ana and Garden Grove; and
WHEREAS, reasonable requirements, such as height, size, setback, lot coverage and number of units will be required in accordance with the California Senate Bill 9.

WHEREAS, the proposed CA 25-13 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

WHEREAS, the Fountain Valley Planning Commission considered the proposed CA No. 25-13 at a duly noticed public hearing on October 8, 2023 NOW THEREFORE, City Council of the City of Fountain Valley does ordain as follows:

SECTION 1:

The City Council hereby determines that CA 25-13 is statutorily exempt from the California Environmental Quality Act (“CEQA”) under California Government Code 65852.21(j) and 66411.7(n).

Attachment “A”
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SECTION 2
The City Council finds that due notice of the public hearing on December 16, 2025, 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 H1/Policy H-1.1). CA 25-113 would be consistent with California Government Code 65852.21-66452.6 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 25-13 would clearly identify standards that must be met per California Government Code 65852.21 and 66411.7along 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 25-13 would update FVMC 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:

ADDITION OF CHAPTER 21.09
Chapter 21.09 of Title 21 (Development Code) is hereby added to the Fountain Valley Municipal Code to read as follows:
“…

Attachment “A”
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CHAPTER 21.09 SB 9 TWO-UNIT RESIDENTIAL DEVELOPMENTS AND URBAN

LOT SPLITS

21.09.010 Purpose, Applicability, Definitions, Interpretation.

A. Purpose. The purpose of this chapter is to appropriately regulate qualifying SB 9 two-unit residential developments and urban lot splits within the single-family residential zone in accordance with California Government Code Sections 65852.21 and 66411.7.

B. Applicability. The standards and limitations set forth in this chapter shall apply to urban lot splits and the development and use of SB 9 two-unit residential developments within the single-family residential zone in the City, notwithstanding any other conflicting provisions of this code. In the event of a conflict between the provisions of this chapter and any other provision of this code, the provisions of this chapter shall prevail.

C. Definitions. As used in this chapter, the following terms shall have the following meanings:

1. “ADU” and “JADU” shall have the meanings ascribed to these terms in chapter 21.08.055.

2. “Director” means the City of Fountain Valley Director of Community Development or Planning Director, or his or her designee.

3. “Individual property owner” means a natural person holding fee title individually or jointly in the person’s own name or a beneficiary of a trust that holds fee title. “Individual property owner” does not include any corporation or corporate person of any kind (partnership, limited partnership, limited liability company, C corporation, S corporation, etc.) except for a community land trust (as defined by Revenue and Taxation Code Section 402.1(a)(11)(C)(ii)) or a qualified nonprofit corporation (as defined by Revenue and Taxation Code Section 214.15).

4. “New primary dwelling unit” means either a new, additional dwelling unit that is created or an existing dwelling unit that is expanded, but does not include an ADU or a JADU.

5. “Single-family residential zone” shall have the same meaning as in California Government Code Section 65852.21. A single-family residential zone includes the R-1 (Single-Family Residential) zoning district and any property within a planned unit development district or a specific plan area where a single-family dwelling is a permitted use, but a duplex, triplex, or multiple-family dwelling is not a permitted or conditionally permitted use.

Attachment “A”
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6. “SB 9 two-unit residential development” shall mean a housing development containing no more than two primary residential units within a single-family residential zone that qualifies for ministerial review pursuant to California Government Code Section 65852.21 and this chapter. A housing development contains two residential units if the development proposes no more than two new units or if it proposes to add one new unit to one existing primary unit.

7. “Urban lot split” shall have the same meaning as stated in California Government Code Section 66411.7.

D. Interpretation. The provisions of this chapter shall be interpreted to be consistent with the provisions of California Government Code Sections 65852.21 and 66411.7 and shall be applied in a manner consistent with state law. The city shall not apply any requirement or development standard provided for in this chapter to the extent prohibited by any provision of state law.

21.09.020 Permit Application and Review Procedures
A. Application. An applicant for an SB 9 two-unit residential development or an urban lot split shall submit an application on a form prepared by the city, along with all information and materials prescribed by such form. Only a complete application will be considered. The city will inform the applicant in writing of any incompleteness within 30 days after the application is submitted. No application shall be accepted unless it is completed as prescribed and is accompanied by payment for all applicable fees.

B. Review. Consistent with state law, the Director will consider and approve or disapprove a complete application for an SB 9 two-unit residential development or an urban lot split ministerially, without discretionary review or public hearing.

C. Nonconforming Conditions. An SB 9 two-unit residential development may only be approved if all nonconforming zoning conditions are corrected.

The correction of legal nonconforming zoning conditions is not a condition for ministerial approval of a parcel map for an urban lot split.

D. Effectiveness of Approval. The ministerial approval of an SB 9 two-unit residential development or a parcel map for an urban lot split does not take effect until the city has confirmed that all required documents have been recorded.

E. Hold Harmless. Approval of an SB 9 two-unit residential development or a parcel map for an urban lot split shall be conditioned on the applicant agreeing to defend, indemnify and hold harmless the city, its officers, agents,

Attachment “A”
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employees and/or consultants from all claims and damages (including attorney’s fees) related to the approval and its subject matter.

F. Specific, Adverse Impacts. Notwithstanding anything else in this section, the Director may deny an application for an SB 9 two-unit residential development or a parcel map for an urban lot split if the building official makes a written finding, based on a preponderance of the evidence, that the project would have a “specific, adverse impact” on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. “Specific adverse impact” has the same meaning as in Government Code Section 65589.5(d)(2): “a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete” and does not include (a) inconsistency with the zoning ordinance or general plan land use designation, or (b) the eligibility to claim a welfare exemption under Revenue and Taxation Code Section 214(g). The building official may consult with and be assisted by planning staff and others as necessary in making a finding of specific, adverse impact.

21.09.030 Qualifying Requirements.

A proposed urban lot split or SB 9 two-unit residential development must meet all of the following requirements in order to qualify for ministerial review pursuant to the provisions of this chapter. It shall be the responsibility of the applicant to demonstrate to the reasonable satisfaction of the Director that each of these requirements is satisfied. The applicant and each owner of the property shall provide a sworn statement, in a form approved by the Director, attesting to all facts necessary to establish that each requirement is met. The city may conduct its own inquires and investigation to ascertain the veracity of the sworn statements, including, but not limited to, interviewing prior owners and occupants of the subject property, interviewing owners and occupants of nearby properties, and reviewing tax records, and may require additional evidence necessary to support the sworn statements, as determined by the Director in his or her reasonable discretion.

A. The subject property shall be located within a single-family residential zone.

B. The proposed development shall not be located on any site identified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of California Government Code Section 65913.4, unless the development satisfies the requirements specified therein. Such sites include the following:

1. Prime farmland, farmland of statewide importance, or land that is zoned or designated for agricultural protection or preservation by the voters.

2. A wetland.

3. Within a very high fire hazard severity zone, unless the site complies with all fire-hazard mitigation measures required by existing building standards.

Attachment “A”
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4. A hazardous waste site that has not been cleared for residential use.

5. Within a delineated earthquake fault zone, unless all development on the site complies with applicable seismic protection building code standards.

6. Within a 100-year flood hazard area, unless the site has either:
a. Been subject to a letter of map revision prepared by the Federal Emergency Management Agency and issued to the local
jurisdiction; or
b. Meets Federal Emergency Management Agency requirements necessary to meet minimum floodplain management criteria of the National Flood Insurance Program.

7. Within a regulatory floodway, unless all development on the site has received a no-rise certification.

8. Land identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan.

9. Habitat for protected species.

10. Land under conservation easement.

C. The proposed development shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the California Public Resources Code, or within a site that is designated or listed as a city landmark or historic property pursuant to a city ordinance.

D. The proposed development shall not require the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.

E. The proposed development shall not require the demolition or alteration of housing that is subject to any form of rent or price control.

F. The proposed development shall not require the demolition or alteration of housing that has been occupied by a tenant (renter) within the last three (3) years.

G. If any existing or previously demolished housing unit on the lot has been occupied by a tenant (renter) in the last three (3) years, the proposed development shall not involve the demolition of more than 25 percent of the existing exterior structural walls of any housing unit on the lot.

H. The subject property shall be owned solely by one or more individual property owners. This provision excludes corporate entities like partnerships, LLC’s, or other corporations from applying directly.

Attachment “A”
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I. In the case of an urban lot split, the lot proposed to be subdivided shall not have been established through a prior urban lot split.

J. In the case of an urban lot split, the lot proposed to be subdivided (“subject lot”) is not adjacent to any lot that was established through an urban lot split by the owner of the subject lot or by any person acting in concert with the owner of the subject lot.

K. No unpermitted construction or illegal nonconforming zoning conditions shall exist on the property.

21.09.040 Permitted Locations
A lot on which an urban lot split or SB 9 two-unit residential development is proposed must be located within a R1 single-family residential zone. A lot located within a multiple-family or mixed-use zone shall not be eligible to be subdivided through an urban lot split or developed with an SB 9 two-unit residential development pursuant to this chapter.

21.09.050 Number of Dwelling Units Permitted on a Lot
A. Notwithstanding any other provisions of this code, state law requires the city to permit a lot located within a single-family residential zone to contain two primary dwelling units, provided both units are developed and maintained in compliance with the standards and requirements set forth in this chapter.

B. Provided the lot is not subdivided or created through an urban lot split, development of two primary dwelling units on a lot through an SB 9 two-unit residential development in conformance with this chapter does not preclude the development or maintenance of one or more ADUs and/or JADUs on the lot to the extent permitted by chapter 21.08.055 and state law.

C. No more than two (2) dwelling units of any kind may be constructed or maintained on a lot that results from an urban lot split. For purposes of this subdivision, “unit” means any dwelling unit, including, but not limited to, a primary dwelling unit, a unit created under this section of this code, an ADU, or a JADU.

D. A lot that is not created by an urban lot split may have a two-unit project under this section, plus any ADU or JADU that must be allowed under State law and the City’s ADU ordinance.

21.09.060 Separate Conveyance
A. Primary dwelling units located on the same lot may not be owned or conveyed separately from one another. All fee interest in a lot and all dwellings must be held equally and undivided by all individual owners of the lot.

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B. Separate conveyance of the two lots resulting from an urban lot split is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the urban lot split boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the two lots share a driveway, appropriate covenants, easements or similar documentation allocating legal and financial rights and responsibilities between the owners of the two lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded before the city will approve a final parcel map for the urban lot split. Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from an urban lot split, all owners of both lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this Code.

C. Condominium airspace divisions and common interest developments are not permitted on a lot created through an urban lot split or containing an SB 9 two-unit residential development.

21.09.070 Residential Use Only
No non-residential use is permitted on any lot created through an urban lot split or containing an SB 9 two-unit residential development.

21.09.080 No Short-Term Rentals Permitted
The rental of any dwelling unit on a lot created through an urban lot split or containing an SB 9 two-unit residential development shall be for a term longer than 30 consecutive days.

21.09.090 Housing Crisis Act Replacement Housing Obligations.

If the proposed development will result in the demolition of protected housing, as defined in California Government Code Section 66300, the applicant shall replace each demolished protected unit and comply with all applicable requirements imposed pursuant to subsection (d) of Government Code Section 66300.

21.09.100 Development Standards and Design Criteria
A. Development Standards. A qualifying SB 9 two-unit residential development and any development on a lot created through an urban lot split shall be subject to the standards and criteria set forth in this section. In addition, except as modified or provided by this section or state law, an SB 9 two-unit residential development and any development on a lot created through an urban lot split shall conform to all objective development standards

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applicable to the lot as set forth in this title and/or in an applicable specific plan or planned unit development ordinance or resolution, along with all applicable objective standards and criteria contained in standard plans and specifications, policies, and/or standard conditions duly promulgated and/or adopted by the city and the Orange County Sanitation District.

B. Unit Size.

1. Minimum Size. Each new primary dwelling unit shall be at least the following minimum sizes based on the number of sleeping rooms provided:
a. Studio / One bedroom: 500 square feet.
b. More than one bedroom: 700 square feet.

2. Maximum Size.
a. The total floor area of each new primary dwelling unit developed as part of an SB 9 two-unit residential development or on a lot created through an urban lot split shall not exceed 800 square feet. The total floor area for all units on property shall not exceed the maximum allowable floor area for the designated residential area.
b. A primary dwelling that was legally established on the lot prior to the submittal of a complete application for an SB 9 two-unit development or an urban lot split and has a total floor area of 800 square feet shall be limited to its current lawful floor area and may not be expanded.
c. A primary dwelling that was legally established prior to the submittal of a complete application for an urban lot split or an SB 9 two-unit residential development and that is smaller than 800 square feet may be expanded to 800 square feet.

C. Unit Height; Stories.

1. Each new primary dwelling unit shall be one story, constructed at ground level, and should not be more than 16 feet in height measured from ground level to the highest point on the roof.

2. No rooftop deck is permitted on any new or remodeled dwelling or structure on a lot resulting from an urban lot split
D. Setbacks.

1. New Primary Dwelling Units. The following minimum setbacks from the property lines shall be observed for each new primary dwelling unit and

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any garages and accessory structures that are attached to a new primary dwelling unit. Detached garages and accessory structures shall comply with the setbacks contained in subsection 2. The required setbacks shall be maintained open and unobstructed from the ground to the sky, except for the permitted intrusions. a. Front Setback: 20 feet
b. Interior Side Setback: 5 feet
c. Street Side Setback: 10 feet
d. Rear Setback: 25 ft. or 20% of the average lot depth, whichever is less.

2. Detached Garages and Accessory Structures. The following minimum setbacks from the property lines shall be observed for detached garages and accessory structures on a lot.
a. Front Setback: 20 feet
b. Interior Side Setback: 5 feet
c. Street Side Setback: 10 feet
d. Rear Setback: 5 feet.

3. Any construction occurring on a lot that abuts a street that has not been fully improved shall observe all building setbacks from the ultimate right-of-way of the street.

4. Exceptions. The above minimum setback requirements do not apply or shall be modified in the following circumstances.
a. No increased setback is required for an existing legally established structure or for a new primary dwelling unit that is constructed in the same dimensions as an existing legally established structure, provided that the new primary dwelling unit shall not be greater than 800 square feet.
b. A required minimum setback may be reduced pursuant to subsection Y of this section to the degree it would (i) physically preclude the development or maintenance of two dwelling units on a lot or (ii) physically preclude any new primary dwelling unit from being 800 square feet in floor area; but in no event may any structure be less than four feet from a side or rear property line.

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c. Setback measurements and exemptions. Minimum setbacks shall apply to all uses except for those outlined in Section

21.18.090 (“Setback measurements and exceptions”).

E. Building Separation. Except as otherwise allowed by state law, a minimum building separation of ten (10) feet shall be maintained between all detached structures on a lot, including all residential units, garages, and accessory structures.

F. Pool Separation. A minimum separation of five (5) feet shall be maintained between any structure to the water line of a swimming pool, spa, or fish pond with a water depth of 18 inches or greater.

G. Lot Coverage or Site Coverage. The maximum lot coverage shall not exceed 60%. The lot coverage shall include all buildings and structures (primary and accessory), covered porches and patios, and covered parking areas.

H. Maximum Front Setback Coverage. No more than 50% of the front setback area may contain hardscape, including the allowed standard driveway in the front yard.

I. Open Space. Each new primary dwelling unit shall provide, at a minimum, a continuous private recreation area of 225 square feet with minimum interior dimensions of 10 feet. The private recreation area shall be open and unobstructed from the ground to the sky. The private recreation area may be located within the interior side, street side, or rear setback areas.

J. Landscaping. Landscaping shall be provided per the following requirements.

1. All setback areas, and all areas not designated for walkways, parking, drive aisles, and private recreation areas, shall be fully landscaped and irrigated. Each development shall comply with the landscaping and irrigation requirements contained in Chapter 21.20 (“Landscaping”).

2. Tree removal
a. No mature tree shall be removed on a lot with any development under this chapter unless removal is necessary to constructing a dwelling unit that must be allowed under state law.
b. “Mature tree” means a tree with a diameter of six inches or more or a height of eight feet or taller.
c. A tree may only be removed under subsection (J)(2)(a) of this section if it is replaced with at least two mature trees of the same type and with a trunk diameter that is the same or larger than that of the removed tree.

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3. Evergreen landscape screening must be planted and maintained between each dwelling and adjacent lots (but not rights-of-way) as follows:
a. At least one (1) 15-gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one 24-inch box size plant shall be provided for every ten (10) linear feet of exterior wall.
b. Plant specimens must be at least six feet tall when installed. c. All landscaping must be drought tolerant.
d. All landscaping must be from the city’s approved plant list.

K. Perimeter Walls – Each development shall provide a perimeter wall with a minimum height of six feet, as measured from the highest point of the finished grade next to the wall, and shall comply with the following stipulations:

1. All perimeter walls shall comply with the requirements as contained in Section 21.18.070 (“Fences, walls, screens, hedges and shrubs”).

2. New walls shall not exceed a height of six feet as measured from the finished point of grade next to the wall. At no time shall the overall height of the wall, as measured from adjacent neighbor’s finished grade, exceed eight feet in height.

3. Walls located within the front yard areas, or adjacent to driveways shall not exceed 36 inches in height.

4. All walls shall be designed to ensure proper vision clearance for cars entering or leaving the driveway and parking areas. No wall or fence shall cause an exceedance of the applicable site distance standards set forth in Section 21.18.040 (“Corner cutback”) or in any revised or updated standard or policy promulgated by the city.

5. The property owner shall work with the adjoining property owners in designing and constructing the perimeter block walls to avoid the use of double walls. If the property owner cannot obtain approval from the adjoining property owners, the property owner shall construct the new wall with a decorative cap to be placed between the new and the existing wall.

6. Street facing perimeter block walls shall be decorative and utilize stucco finish, slump stone or split-face block. Replaced perimeter tract walls shall match the existing tract walls in design, material, and color.

K. Off-Street Parking.

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1. Required Parking. One (1) off-street parking space must be provided for each new primary dwelling unit unless one of the following applies:
a. The lot is located within one-half mile walking distance of either:
i. A corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours; or
ii. A site that contains:
(ia) An existing rail or bus rapid transit station,
(ib) A ferry terminal served by either a bus or rail transit service, or
(ic) The intersection of two or more major bus routes
with a frequency of service interval of 15 minutes or
less during the morning and afternoon peak commute
periods.
b. The site is located within one block of a car-share vehicle location.

2. Off-street parking spaces for an existing primary dwelling shall continue to be provided in accordance with the standards for the underlying zone.

3. Required parking for new primary dwelling units may be provided within an enclosed garage or as open spaces on the lot, but not as tandem parking. Open spaces may be located within the side or rear setbacks, and in the front setback for driveways that are not shared by more than one housing unit. All open spaces shall be paved with direct access to a city approved curb cut and shall not encroach upon landscaping requirements of this code.

4. All required parking spaces provided shall be a minimum of 10 feet wide and 20 feet in depth. Parking spaces adjacent and parallel to walls shall be a minimum of 12 feet wide.

5. Any proposed enclosed garage shall meet the following standards:
a. Each enclosed garage shall maintain the following minimum interior parking clearance based on the number of cars it is designed to hold. No storage cabinets or mechanical equipment, including, but not limited to water heaters, utility sinks, or washers and dryers, shall encroach into the required parking area.

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Number of
Cars
Minimum Interior Parking
Area
1 10 feet x 20 feet
2 20 feet by 20 feet
3 30 feet by 20 feet
b. The garage shall be equipped with an automatic roll-up garage door opener.
c. Each garage shall maintain the ability to park the required number of vehicles at all times.

L. Unit Design Standards.

1. If there is an existing primary dwelling that was legally established on the lot prior to the filing of a complete application for a two-unit development or an urban lot split, any new additional primary dwelling unit must match the existing primary dwelling unit in exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof.

2. If two new primary dwelling units are developed on the lot, the dwellings must match each other in exterior materials, color, and dominant roof pitch. The dominant roof slope is the slope shared by the largest portion of the roof.

3. All exterior lighting must be limited to down-lights.

4. Each new primary dwelling unit shall have one (1) main entry that is clearly defined, and to the extent possible, be oriented directly toward the street(s) in order to provide consistency with the neighborhood. The main entry shall be covered, with a minimum depth of three feet. Each covered entry shall be in proportion with the building and shall incorporate architectural features that are used in the overall building design. All exterior doors shall have standard door locks and dead bolts.

5. No window or door of a dwelling that is constructed on the lot may have a direct line of sight to an adjoining residential property.

Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight.

6. If any portion of a dwelling is less than 10 feet from a property line that is not a public right-of-way line, then all windows and doors in that portion must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.

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M. Storage Facilities. Each new primary dwelling unit shall provide a minimum 200 cubic feet of individually enclosed, weatherproofed, and lockable private secure storage space. Such space shall be for the sole use of the occupant of the dwelling unit and may be provided within individual storage lockers, cabinets or closets within the garage area if neither the space nor the doors leading thereto overhang required off-street parking as outlined in Section

21.09.100(K). Storage areas inside units must be separate from typical forms of interior storage including closets, pantries, linen closets, and kitchen/bathroom closets. Normal closets and cupboard space located within the unit shall not count toward meeting the requirement.

N. Laundry Facilities. Each new dwelling unit shall have an independent laundry space located within the unit or within a garage accessible from the unit that is equipped with washer and dryer hook-ups. If the laundry facilities are located within an enclosed garage, the laundry equipment shall not encroach into the interior garage parking area.

O. Bathrooms. Each unit will provide a minimum of one full bathroom accessible by all bedrooms as well accessible as a common bathroom. If the proposed unit has multiple bedrooms with a primary bedroom and bathroom, the unit shall provide a secondary full bathroom accessible by secondary bedrooms with common access.

P. Water Heaters. Each new primary dwelling unit shall have a separate hot water heater. The location of the water heater shall be incorporated into the design of each unit. No exterior water heater enclosures shall be permitted.

Water heaters may be substituted with tankless water heaters provided all building codes are complied with.

Q. Mechanical Equipment, Metering Devices. All ground mounted mechanical equipment and metering devices shall be completely screened from view from either on or off the property. All ground mounted equipment and above-ground utility meters, including, but not limited to, heating, cooling, or ventilating equipment, water meters, gas meters, and irrigation equipment, shall be shown on the site plan, and, to the extend possible, be placed outside of the required front setback area. If mechanical equipment or metering devices are to be located between a structure and the property line, an unobstructed path at least three feet wide shall be provided between the equipment and the property line. Roof mounted mechanical equipment shall not be permitted.

Q. Access and Circulation.

1. Each development shall be designed to provide adequate on-site vehicular access, circulation, back-up, and turn-around areas that comply with all the applicable city standards.

2. Where the street frontage of a lot (or the combined street frontage of the two lots created through an urban lot split) is less than 61 feet, all

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units on the lot (or all units on both lots created through an urban lot split) shall share the same drive approach and driveway.

3. Driveways shall maintain a minimum width of 20 feet, unless a wider width is required for emergency access.

4. Adequate access to each residential unit on the lot for fire and emergency medical service personnel and vehicles must be provided.

R. Refuse Storage Areas. All developments shall provide each unit with the appropriate number of containers for recyclables, organics, and nonrecyclable solid waste (“trash containers”) as required by Section 6.08 (“Solid waste”), and shall comply with the following:

1. Trash containers shall be stored within designated storage areas only where they are not visible from the public street, sidewalk, or alleyway. Trash containers shall not be stored within the required garage parking area.

2. The placement of trash containers for pick-up, and the duration of time prior to and after trash collection of those trash containers, is subject to Section 6.08 (“Solid waste”).

3. The area required for each container shall be a minimum of 38 inches by 38 inches.

4. The trash areas shall be paved and accessed by gates and a walkway for ease of taking trash containers to and from the street.

S. Utilities.

1. Each primary dwelling unit on a lot must have its own direct utility connection to the utility / public service provider.

2. All necessary and/or required easements for the provision of electricity, gas, water, sewer, and other utility or public service to the lot and each primary dwelling unit must be obtained by the property owner / applicant. The city may condition approval of an application under this section upon the applicant providing evidence that such easements have been agreed to and/or recorded.

3. Submitted plans shall show the location and dimension of all proposed above-ground and underground utility and public service facilities serving the lot and each dwelling unit and the location and dimensions of all related easements.

T. Building and Safety. All structures built on the lot must comply with all current local building standards. An urban lot split is a change of use.

U. Notice of construction.

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1. At least 30 business days before starting any construction of a two-unit project, the property owner must give written notice to all the owners of record of each of the adjacent residential parcels, which notice must include the following information:

2. Notice that construction has been authorized,

3. The anticipated start and end dates for construction,

4. The hours of construction,

5. Contact information for the project manager (for construction-related complaints), and

6. Contact information for the Building and Safety Department.

7. This notice requirement does not confer a right on the noticed persons or on anyone else to comment on the project before permits are issued.

Approval is ministerial. Under State law, the City has no discretion in approving or denying a particular project under this section. This notice requirement is purely to promote neighborhood awareness and expectation.

V. Remedies. If a two-unit project violates any part of this Code or any other legal requirement:

1. The buyer, grantee, or lessee of any part of the property has an action for damages or to void the deed, sale, or contract.

2. The City may:
• Bring an action to enjoin any attempt to sell, lease, or finance the property.
• Bring an action for other legal, equitable, or summary remedy, such as declaratory and injunctive relief.
• Pursue criminal prosecution, punishable by imprisonment in County Jail or State prison for up to one year, by a fine of up to $10,000, or both; or a misdemeanor.
• Record a notice of violation.
• Withhold any or all future permits and approvals.
• Pursue all other administrative, legal, or equitable remedies that are allowed by law or the City’s Code.

W. Drainage and Stormwater Management. Each lot shall drain to the street or to an approved storm drain facility. The design of parkway culverts and storm drain lateral pipe connections to city-maintained storm drains within

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the city right-of-way shall comply with applicable city standards. SB 9 twounit residential developments and the development of lots created through an urban lot split are subject to Chapter 14.40 (“Stormwater regulations”) and Chapter 21.18.120 (“Storm water and urban runoff management”) and must comply with all applicable related rules, requirements, and standards, including, but not limited to, the preparation and implementation of a water quality management plan that meets applicable requirements.

X. Address Identification. Each residential unit shall have a separate address and shall be provided with approved address identification that is visible from the street fronting the lot in accordance with Section R319 of the California Residential Code. Where the unit address on the building cannot be viewed from the street fronting the lot, a monument, pole, or other means consistent with city standards shall be used to identify the unit. Where required by the Fire Department, address identification shall be provided in additional approved locations to facilitate emergency response.

Y. Exceptions to Objective Standards.

1. Any objective zoning, subdivision, or design standard that would have the effect of physically precluding the construction of up to two primary residential units on a lot or that would physically preclude each new unit from being 800 square feet in floor area, shall be modified or waived to the extent necessary to allow the development of two primary residential units on a lot pursuant to this chapter that are each 800 square feet in floor area. The city prioritizes some objective development standards over others, as provided in subsection 2, below. In applying the exceptions required by this subsection, a proposed project shall be designed such that a development standard given a lower priority is modified or waived before a development standard given a higher priority. If a proposed project can be designed such that each lot can accommodate two 800 square foot primary dwelling units by modifying or waiving a development standard with a lower priority, then an application that proposes a design requiring the modification or waiver of a development standard with a higher priority will be denied.

2. Priority of Development Standards. The city prioritizes the following development standards in the following descending order of priority, with the first development standard listed having the highest priority:
a. Height; Stories.
b. Front setback.
c. Maximum front setback hardscape coverage (50%).
d. Open space (225 square feet).
e. Minimum unit size.

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f. Side or rear setback (a minimum of 4 feet must be maintained). g. Lot coverage (60%).
h. Building separation (minimum separation required by Building Code must be maintained).

3. This subsection shall not be interpreted to permit the construction of new garages or accessory structures, or the maintenance of existing accessory structures not providing required parking, where the development or maintenance of two 800 square foot dwelling units on the lot would not be physically precluded in the absence of such proposed or existing structures.

4. Building standards, standards required by federal, state or local law or for sanitation or safety reasons, the off-site parking requirements in subsection K of this section, and the lot size, access, and frontage requirements set forth in Section 21.09.110 will not be waived or modified unless otherwise required by state law.

5. As part of its application, the applicant shall provide a written explanation that (a) specifically describes every development standard the applicant seeks to modify and waive, and to what extent, (b) demonstrates why waiver or modification of each development standard is needed to prevent physically precluding the construction of up to two primary residential units on the lot and/or each new unit from being at least 800 square feet in floor area, and (c) demonstrates that the requested modifications and/or waivers are consistent with the priority set forth in this subsection.

21.09.110 Additional Requirements for Urban Lot Splits
A. An urban lot split must conform to all applicable objective requirements of the Subdivision Map Act, including implementing requirements in this code, except as otherwise provided in this chapter. Notwithstanding the foregoing, no dedication of rights-of-way or construction of offsite improvements is required solely for an urban lot split.

B. Lot Size. The parcel map for an urban lot split must subdivide an existing lot to create no more than two new lots of approximately equal lot area, provided that one lot shall not be smaller than 40 percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than 1,200 square feet.

C. Easements.

1. The owner must enter into an easement agreement with each utility/public-service provider to establish easements that are sufficient

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for the provision of public services and facilities to each of the resulting lots.

2. Each easement must be shown on the tentative parcel map and the final parcel map.

3. Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property before the final parcel map may be approved.

D. Lot Access.

1. Each resulting lot must adjoin the public right-of-way.

2. Each resulting lot must have frontage on the public right-of-way of at least 20 feet.

3. The access corridor shall be kept free and clear of building or structures of any kind except for lawful fences and underground or overhead utilities.

E. Improvements Required. Each resulting lot must be developed in accordance with improvement plans processed concurrently with the parcel map application and approved by the city, showing the location and dimensions of all structures, drive aisles, parking areas, pedestrian pathways, and other improvements proposed to be constructed or to remain on each lot.

Approval of a parcel map for an urban lot split shall be subject to the city’s approval of such related improvement plans and all related entitlements or other approvals required by this code. Any proposed development on one of the lots that is inconsistent with or not shown on the improvement plans approved concurrently with the urban lot split shall be subject to review and approval by the city in accordance with the applicable requirements of this code.

F. Required Affidavit. The applicant for a parcel map for an urban lot split must sign an affidavit provided by the city stating that the applicant intends to occupy one of the dwelling units on one of the resulting lots as the applicant’s principal residence for a minimum of three years after the final parcel map for the urban lot split is approved.

21.09.120 Compliance with Emergency Access and Service Requirements Development of a lot pursuant to this chapter must conform and comply with all applicable provisions of the fire code and applicable requirements promulgated by the Fire Department intended to ensure sufficient emergency access is provided or maintained.

21.09.130 Deed Restriction.

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Prior to approval of a parcel map for an urban lot split and/or the issuance of a building permit for the development of an SB 9 two-unit residential development, the owner(s) of record of the property shall provide the Director a copy of a covenant agreement, declaration of restrictions, or similar deed restriction (“deed restriction”) recorded against the property, which is in a form prepared by and/or acceptable to the Director, and that does each of the following:

A. Expressly requires the rental of any dwelling unit on the property be for a term longer than 30 consecutive days.

B. Expressly prohibits any non-residential use of the lot.

C. Expressly prohibits primary dwelling units located on the same lot from being owned or conveyed separately from one another.

D. Expressly requires all fee interest in each lot and all dwellings to be held equally and undivided by all individual owners of the lot.

E. Expressly prohibits condominium airspace divisions and common interest developments on the property.

F. States that the property was formed and/or developed pursuant to the provisions of this chapter and is therefore subject to the city regulations set forth in this chapter, including all applicable limits on dwelling size and development.

G. Expressly prohibits more than two (2) dwelling units of any kind from being constructed or maintained on a lot that results from an urban lot split.

H. States the following:

1. That the deed restriction is for the benefit of and is enforceable by the city,

2. That the deed restriction shall run with the land and shall bind future owners, their heirs, and successors and assigns,

3. That lack of compliance with the deed restriction shall be good cause for legal action against the owner(s) of the property,

4. That, if the city is required to bring legal action to enforce the deed restriction, then the city shall be entitled to its attorneys’ fees and court costs; and

5. That the deed restriction may not be modified or terminated without the prior written consent of the Director.

21.09.140 Fees

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Development of lots pursuant to this section shall be subject to all applicable fees, including development impact fees, and assessments, duly adopted by the city.

21.09.150 Objective Standard Conditions.

The Director is authorized to promulgate objective standard conditions implementing this section, which are consistent with this Code and state law, that shall apply to the application and development of two-unit developments and urban lot splits, and to publish such standard conditions on the city’s internet website.

Applicants must comply with all standard conditions duly promulgated by the Director and published on the city’s internet website.

21.09.160 Expiration of Approval.

The approval of an SB 9 two-unit residential development shall become null and void if construction is not commenced within one (1) year of the approval and diligently advanced until completion of the project. In the event construction of the project is commenced, but not diligently advanced until completion, the rights granted pursuant to the approval shall expire if the building permits for the project expire.
…”
SECTION 5: ADDITION OF SECTION 21.67
Chapter 21 of the Fountain Valley Municipal Code is hereby amended to add Section

21.67, Urban Lot Splits, as follows:
“…

21.67 Urban Lot Splits
A. The provisions of this section apply to the processing of parcel maps for urban lot splits pursuant to California Government Code section 66411.7 and chapter 21.09 of this code.

B. Approval. Notwithstanding the Subdivision Map Act or any other provision of this chapter, an application for a parcel map for an urban lot split is approved or denied ministerially, by the city’s Community Development Director, without discretionary review. A tentative parcel map for an urban lot split is approved ministerially if it complies with the requirements of chapter 21.09, applicable objective requirements of this chapter 21.67, and the Subdivision Map Act. The tentative parcel map may not be recorded. A final parcel map is approved ministerially as well, but not until the owner demonstrates that the required documents have been recorded, such as the deed restriction and easements.

C. Guidance and Procedures. The city engineer has the authority to interpret and establish guidance and procedures for the processing, approving, and finalizing parcel maps for urban lot splits, which are consistent with state and local law.
…”

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SECTION 6: Amendment to Section 21.08.040
Section 21.08.040 (Residential zoning district general development standards) of the Fountain Valley Municipal Code is hereby amended to add the following sentence at the end of the first paragraph:
“…
Subdivisions, new land uses and structures, and alterations to existing land uses and structures, shall be designed, constructed and/or established in compliance with the requirements in Tables 2-3 and 2-4 in addition to the applicable development standards (e.g., landscaping, parking and loading, etc.) in Chapters 21.16 through

21.30 of this title unless otherwise required by a SB9 two-unit residential development or urban lot split per Chapter 21.09.
…”
SECTION 7: Severability
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 8: Effective Date
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 16th DAY OF DECEMBER, 2025.

ATTEST
________________________ _____________________
Rick Miller, City Clerk Ted Bui, Mayor

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APPROVED AS TO FORM:

HARPER & BURNS LLP
________________________
Attorneys for the City

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
SB 9 Two Unit Development and Urban Lot Splits - Code Amendment No. 25-13 City of Fountain Valley - Citywide
An amendment to the Fountain Valley Municipal Code
(FVMC) add Section 21.09 (SB 9 two-unit residential developments and urban lot splits) and amend section 21.08 and 21.67
City of Fountain Valley
10200 Slater Ave., Fountain Valley, CA 92708 (714)593-4425 ✔ 15303, 15305, 15061
✔ Public Resources Code 21080(b)(1), 15268
Adoption of this Ordinance is statutorily exempt from
the California Environmental Quality Act under California Government Code 65852.21(j) and 66411.7(n).

Ron Vargas, Associate Planner 714-593-4479
✔

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: December 16, 2025
Members of the City Council
Subject: Code Amendment No. 25-06 – An Amendment to the Fountain Valley Municipal Code Section (FVMC) SECTION 21.10.030, 21.15.030, 21.90.020, and the Addition of Section 21.30.100 to Amend Use Requirements for Breweries and Distilleries, Artist Studious, Automatic Teller Machines and Large Format Restaurants.

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
An amendment to Fountain Valley Municipal Code (FVMC) section 21.10.030 TABLE 2-.6 An amendment to Fountain Valley Municipal Code (FVMC) Sections 21.10.030, 21.15.030,

21.90.020, and the addition of Section 21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants.

EXECUTIVE SUMMARY
Periodically, the Planning Department Staff review the land use tables within the City’s Zoning Code to identify any possible beneficial adjustments that could be made based on recent inquiries, trends and application activity. Staff have recently completed such a review and is recommending changes to the following use: breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants.

Per Fountain Valley Municipal Code, restaurant uses are distinguished between SmallFormat restaurant and Large-Format restaurant. Small-Format restaurants are defined as restaurants with 50 seats or less and do not require approval of a Conditional Use Permit (CUP). Whereas Large-Format restaurants contain 51 seats or more and require approval of a CUP. Per FVMC Artist Studios are defined as "Studios for art, dance, music, photography, etc." and require a CUP to operate in all Commercial, Manufacturing and Mixed-Use Zones.

Automated Teller Machine uses (ATM) require approval of a CUP in all Mixed-Use Zones.

BACKGROUND
Staff have reviewed the current municipal code for ways to improve the entitlement process while finding ways to encourage business development in the City. On August 14, 2024, staff

Code Amendment No. 25-06
City Council Meeting December 16, 2025

presented before Planning Commission Code Amendment (CA) 24-04 to allow for semipermanent makeup uses in all Commercial zones and Mixed Use zones, define health and fitness uses less than 5,000 square feet and permit them in all Commercial zones, MixedUse zones and Manufacturing zones, and allow for outdoor storage and off-site storage in all Public Institutional zones.

Following the adoption of CA 24-04, Planning Commission requested a study session examining the current municipal codes to determine additional changes that can be made to further incentivize businesses and allow for new businesses to operate without the requirements of CUP or lengthy permitting processing. Staff conducted two (2) study sessions before the Planning Commission on September 9, 2024, and January 22, 2025. Based on the recommendations from the Commission, staff have made the following changes presented in CA 25-06 to the municipal code. All changes have been approved by Planning Commission on October 8, 2025 (attachment #4).

DISCUSSION
Over the last several years, staff has processed various applications for restaurants, gyms, personal services and other minor uses which required approval of a CUP. Historically, many of these uses required large footprints and excess square footage to operate over the years, the physical requirements for these businesses have changed and the overall size to operate these businesses have reduced in size. Staff reviewed these items and made changes to our municipal code, allowing such uses to be permitted by right and provide conditions each use would have to comply with.

Based on feedback from Planning Commission, staff were instructed to modify the use table to allow for various use types to be permitted by right or adjust definitions and broadening the allowed uses within commercial areas. These uses include the definition of Artist Studios, increasing the small format restaurant permit from 50 seats to 75 seats and allowing for breweries and distilleries permitted by right.

The Planning Commission has expressed interest in allowing artists to operate freely within the City. Currently, code requires a CUP for the establishment and operation of all Artist Studios. This includes studios for art, music, photography and other similar uses. During the study session held with Planning Commission, commissioners suggested that these uses have low impact and can benefit the City by incentivizing creativity in the City. With CA 24- 04, staff updated the definition of Artist Studios to distinguish creative studios from gym uses and similar uses that require studio space. The definition for Artist Studios for art, music, photography, etc. includes small-scale facilities, typically accommodating one group of students at a time, in no more than one instructional space. These studios include facilities for individual and group instruction and training in the arts, production rehearsal, music recording, photography, and the processing of photographs produced only by users of the studio facilities. With direction from Planning Commission, these uses will now be permitted to operate in all Commercial, Manufacturing and Mixed-Use zones.

Since adopting and permitting small format restaurants in 2019, staff has processed dozens of permits for Small Format restaurants. As such, Fountain Valley has become a mecca for new restaurants. In an effort to continue to find ways to be business friendly, staff have reviewed the existing code, and with direction from the Planning Commission, staff recommends adjusting the number seats required to comply with the Small-Format

Code Amendment No. 25-06
City Council Meeting December 16, 2025

Restaurant permit from 50 seats to 75 seats. This change would allow more restaurants to qualify for the small restaurant permit. Based on applications received for restaurants, the threshold tends to be between 50 seats and 75 seats. By allowing more restaurants to operate under this permit, this would eliminate the time it takes restaurants to process CUP as well as reduce the cost to the applicant. No additional changes will be made to the definition of Small-Format and Large-Format restaurant. Both restaurant types will be required to comply with municipal code conditions for restaurant use.

In addition to the above changes to the use table, CA 25-06 includes an update to the code to allow for breweries and distillers to operate within Commercial and Manufacturing zones.

With the popularity of the breweries and distilleries in Southern California, staff determined that an update to the code to allow for these uses in commercial and manufacturing zone’s would further encourage new business in the city. Staff researched and surveyed the surrounding cities to determine which cities allow for similar uses and conditions in which these uses must comply with. Currently, brewing and distilling alcohol is considered food manufacturing and permitted only in Manufacturing zones. Given the location and use type, the consumption of alcohol and food is not permitted on site when in conjunction with beverage manufacturing. Operations are strictly limited to manufacturing. As presented in CA 25-06, any proposed brewery and distillery would be permitted to operate in all mixed-use zones, commercial zones, and manufacturing zones and would include the ability for these users to include alcohol sales and consumption along with onsite dining for guests given that the proposed user complies with all conditions outlined within the amendment (Attachment #2).

As part of the study session, Planning Commission acknowledge the low impact ATMs have on local business. Currently, ATMs are permitted by right in all commercial and manufacturing zones. Due to this, the Commission expressed interest in allowing these uses permitted by right in mixed-use zones. Given that the use is currently permitted by right in all commercial and manufacturing zones, and all ATMs must comply with the California Financial Code which includes lighting standards, the proposed changes to ATM’s in CA 25-06 would maintain consistency throughout the code and allow these uses by right in mixed-use zones.

General Plan Consistency
CA 25-06 will meet Land Use Element Goal LU-1 as it will provide for an arrangement of compatible land uses that protects and maintains attractive and safe neighborhoods while promoting dynamic activity centers and preserving conventional commercial and industrial uses. Per policy LU-1.1, Land use compatibility and viability, the CA will require that new development is located, scaled, buffered, and designed to minimize negative impacts on existing conforming uses and adjacent neighborhoods. The CA will also comply with General Plan Goal LU-4 – Economic development thinking integrated throughout the municipal organization in a way that sustains long-term economic growth and attracts private investment. Specifically, CA 25-06 will meet General Plan Policy LU-4.1 – Invest in economic development through the City’s economic development program to maintain and enhance the attractiveness of Fountain Valley for private investment, to increase local job opportunities for residents, and to facilitate growth in the local economy that contributes to and enhances Fountain Valley’s premier quality of life.

Code Amendment No. 25-06
City Council Meeting December 16, 2025

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 Orange County Register and public notices were posted at City Hall, Recreation Center, and Fountain Valley Library.

ENVIRONMENTAL IMPACT REVIEW
The proposed project has been reviewed in compliance with the provisions of the California Environmental Quality Act (CEQA) and the city’s environmental review procedures. CA 25-06 is not subject to review under CEQA pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment). CA 25-06 will amend Fountain Valley Municipal Code Sections 21.10.030, 21.15.030, 21.90.020, and add Section 21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants (attachment #3).

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

ALTERNATIVES
Alternative No. 1: Introduce and approve the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 25-06 to amend Fountain Valley Municipal Code Sections 21.10.030, 21.15.030, 21.90.020, and add Section 21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants.

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 25-06 to amend Fountain Valley Municipal Code Sections 21.10.030, 21.15.030, 21.90.020, and add Section 21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants.

Alternative No. 3: Continue for further discussion.

Code Amendment No. 25-06
City Council Meeting December 16, 2025

RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1: Introduce and approve the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 25-06 to amend Fountain Valley Municipal Code Sections 21.10.030, 21.15.030, 21.90.020, and add Section 21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small-format restaurants.

Prepared By: Ron Vargas, Associate Planner
Reviewed by: Omar Dadabhoy, Community Development Director Approved by: Maggie Le, City Manager
Attachments: 1. Ordinance for Code Amendment No. 24-10

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. 25-06 TO AMEND FOUNTAIN VALLEY MUNICIPAL CODE (FVMC) SECTIONS 21.10.030, 21.15.030, 21.90.020, AND ADD SECTION 21.30.100 TO AMEND USE REQUIREMENTS FOR

BREWERIES AND DISTILLERIES, ARTIST STUDIOS, AUTOMATIC TELLER

MACHINES, AND LARGE AND SMALL FORMAT RESTAURNTS
WHEREAS, Article 11, Section 7 of the California Constitution authorizes the City of Fountain Valley (“City”) to make and enforce within its limits all ordinances and regulations not in conflict with general laws; and
WHEREAS, the Planning Commission has held multiple study sessions on September 9, 2024, and January 22, 2025, to review the municipal code for allowable uses; and WHEREAS, CA 25-06 would make changes to allowable uses in the commercial, manufacturing, and mixed-use zones; and
WHEREAS, small format restaurants are identified as restaurants with 50 seats or less and are subject to the approval of a Small Format Restaurant Permit; and WHEREAS, large format restaurants are restaurants with 51 seats or more and require a Conditional Use Permit (“CUP”); and
WHEREAS, CA 25-06 would change the maximum seating capacity within the definition of small format restaurants from 50 seats or less to 75 seats or less; and WHEREAS, CA 25-06 would change the seating capacity within the definition of large format restaurants from 51 seats or more to 76 seats or more; and WHEREAS, Fountain Valley Municipal Code currently does not permit any breweries and distilleries in Commercial and Manufacturing zones; and WHEREAS, CA 25-06 would establish the ability to allow for breweries and distilleries in Commercial and Manufacturing zones; and
WHEREAS, establishing standards for breweries and distilleries would allow for unique and independent beverage manufacturing uses and would add to the eclecticism of restaurants located in the City; and
WHEREAS, allowing breweries and distillers in Commercial and Manufacturing zones would help enhance the City’s economic base, provide for a fiscally sustainable municipal government, and help ensure economic prosperity for applicants by eliminating the entitlement processing time of 2-3 months for a CUP. Additionally, allowing breweries and distillers in all commercial and manufacturing zones would align with use requirements of surrounding cities such as Anaheim, Orange, Huntington Beach, Newport Beach, and Costa Mesa where breweries

“Exhibit A”
and distilleries were permitted in industrial zones with approval of a CUP or permitted by right; and
WHEREAS, CA 25-06 would allow Artist Studios by right in all Commercial, Manufacturing, and Mixed-Use Zones; and
WHEREAS, CA 25-06 would allow Automatic Teller Machines (ATM) by right in all MixedUse Zones to provide consistency with the Commercial and Manufacturing zones; and WHEREAS, the Fountain Valley Planning Commission considered the proposed Code Amendment No. 25-06 at a duly noticed public hearing on October 8, 2025, and by a vote of _-_ recommended the City Council approve CA 25-06; and
WHEREAS, the proposed CA 25-06 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.

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

SECTION 1
The City Council hereby determines that CA 25-06 is not subject to the California Environmental Quality Act (“CEQA”), pursuant to Section 15061(b)(3) as the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. CA 25-06 will amend Fountain Valley Municipal Code Sections 21.10.030, 21.15.030, 21.90.020, and add Section 21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants SECTION 2
The City Council finds that due notice of the public hearing on October 8, 2025, 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 City Council 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 this title, in the case of a title amendment. The proposed CA is consistent with General Plan Land Use Element Goal LU-1 as it will provide for an arrangement of compatible land uses that protects and maintains attractive and safe

“Exhibit A”
neighborhoods while promoting dynamic activity centers and preserving conventional commercial and industrial uses. Per policy LU-1.1, Land use compatibility and viability, the CA will require that new development is located, scaled, buffered, and designed to minimize negative impacts on existing conforming uses and adjacent neighborhoods.

The CA will also comply with General Plan Goal LU-4 – Economic development thinking integrated throughout the municipal organization in a way that sustains longterm economic growth and attracts private investment. Specifically, CA 25-06 will meet General Plan Policy LU-4.1 – Invest in economic development through the City’s economic development program to maintain and enhance the attractiveness of Fountain Valley for private investment, to increase local job opportunities for residents, and to facilitate growth in the local economy that contributes to and enhances Fountain Valley’s premier quality of life. By removing the CUP requirements, and allowing for the change in land use, it will encourage new business and eliminate the time it takes to process a CUP for semi-permanent makeup use and gym uses.

2. The proposed amendments would not be detrimental to the public convenience, health, interest, safety or welfare of the city. Approval of CA 25-06 will not create conditions materially detrimental to the public health, safety and general welfare. By allowing the proposed amendments to the commercial, manufacturing and mixed-use zone districts, they will continue to operate within their permitted zone area and comply with all development and operational standards outlined within the FVMC.

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

4. The proposed amendment is internally consistent with other applicable provisions of this title. As noted in finding 1 above, CA 25-06 would amend Fountain Valley Municipal Code Sections 21.10.030, 21.15.030, 21.90.020, and add Section

21.30.100 to amend use requirements for breweries and distilleries, artist studios, automatic teller machines, and large and small format restaurants. There are no other known inconsistencies with the proposed amendment and other applicable provisions of Title 21.

SECTION 4
Section 21.10.030 is hereby amended in part to read as follows:
“…

21.10.030 Commercial and manufacturing district land uses and permit requirements.

Table 2-6 identifies the uses of land allowed by this title in the commercial and manufacturing zoning districts, 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.

“Exhibit A”
TABLE 2-6
Allowed Uses and Permit
Requirements for Commercial and
Manufacturing Zoning Districts
P Permitted Use
Specific
Use
Regs.

CUP Conditional Use Permit
required
— Use not allowed

PERMIT REQUIRED BY DISTRICT
LAND USE (1) CP C1 C2 CM M1

AGRICULTURE AND OPEN SPACE USES
Agricultural production — — — CUP P
Agricultural produce market, wholesale — — — CUP P
Greenhouses, commercial, wholesale only — — — P P

MANUFACTURING AND PROCESSING
USES
Agricultural products processing — — — CUP P
Apparel and fabric products manufacturing — — — P P
Assembly of prepared materials — — — P P
Bakery products distribution — — — P P
Breweries and Distilleries with onsite alcohol
consumption
- - - P5 P5 21.30.100
Breweries and Distilleries with onsite alcohol
consumption and dining
P5 P5 P5 P5 P5 21.30.100
Chemical product manufacturing — — — CUP P
Concrete, gypsum, and plaster products — — — — CUP
Electronics and appliance manufacturing — — — P P
Food and beverage product manufacturing — — — CUP P
Furniture/fixtures manufacturing, cabinet shops — — — CUP P Fuel storage — — — — CUP
Glass product manufacturing — — — CUP P
Handcraft industries, small-scale manufacturing — — P P P Laundries and dry cleaning plants — — — P P
Leather, fur products — — — P P
Machinery manufacturing — — — CUP P
Metal products fabrication, machine/welding
shops
— — — CUP P
Paper product manufacturing — — — CUP P
Petroleum bulk storage — — — — CUP
Pharmaceuticals manufacturing — — — CUP P
Photographic processing — — — P P
Plastics, synthetics, rubber products
manufacturing
— — — CUP P
Printing and publishing — — P P P
Quarry materials storage and distribution — — — CUP CUP Recycling – Large collection facility — — — CUP CUP
Recycling – Small collection facility — CUP CUP CUP CUP Research and development (R&D) — — — P P
Stone and stone cut products — — — CUP P

“Exhibit A”
Structural clay and pottery product manufacturing — — — — CUP Textile manufacturing — — — CUP P
Warehousing, wholesaling and distribution
facilities
— — — P P
Allowed Uses and Permit
Requirements for Commercial and
Manufacturing Zoning Districts
P Permitted Use
Specific
Use
Regs.

CUP Conditional Use Permit
required
— Use not allowed

PERMIT REQUIRED BY DISTRICT
LAND USE (1) CP C1 C2 CM M1

MANUFACTURING AND PROCESSING
USES (con’t)
Woodworking shops, including cabinetry — — — P P

RECREATION, EDUCATION AND PUBLIC ASSEMBLY
USES
Accessory entertainment uses CUP CUP CUP CUP CUP
Artist studios (art, music, photography, etc.) CUP
P

CUP P CUP P CUP P CUP
P
Assembly facilities and nonprofit institutions — CUP CUP — — Billiard and pool halls — — CUP — —
Clubs, lodges, membership meeting halls CUP CUP CUP — — Dance halls — — CUP — —
Health and fitness centers greater than 5,000
sf
— CUP CUP — —
Health and fitness centers less than 5,000 sf — P P P P Indoor amusement/entertainment facilities — CUP CUP CUP CUP Libraries and museums CUP CUP P — —
Night clubs and bars — — CUP — —
Outdoor commercial recreation facilities — — CUP — —
Schools - private CUP CUP CUP —
Schools - Specialized training and education CUP CUP CUP CUP CUP Theaters and auditoriums — CUP CUP — —

RESIDENTIAL USES
Caretaker’s quarters — — — CUP CUP
Emergency shelters2 — CUP P2 — —
Rooming and boarding houses CUP — — — —
Residential care homes CUP — — — —
Single room occupancy (SRO) — — CUP — —

RETAIL TRADE
Accessory retail sales P P P CUP CUP
Alcoholic beverage sales, off-premises — CUP CUP — —
Alcoholic beverage sales, on-premises — CUP/P4 CUP/P4 CUP/P4 CUP 21.10.060 Antiques, art galleries, collectibles P P P CUP CUP
Auto parts sales — P P P P
Auto sales and rental, new — CUP CUP CUP CUP
Auto sales and rental, used — — CUP CUP CUP
Bakeries, retail — P P — —

“Exhibit A”
Butcher shops — P P — —
Building material stores — — CUP P —
Convenience stores — CUP CUP — —
Allowed Uses and Permit
Requirements for Commercial and
Manufacturing Zoning Districts
P Permitted Use
Specific
Use
Regs.

CUP Conditional Use Permit
required
— Use not allowed

PERMIT REQUIRED BY DISTRICT
LAND USE (1) CP C1 C2 CM M1
RETAIL TRADE (con’t)
Department stores — P P P —
Drive-in and drive-through sales — CUP CUP — —
Drug stores, pharmacies CUP P P — —
Equipment sales and rental — — — CUP CUP
Furniture, furnishings & appliance stores — P P P CUP
Garden supply and equipment sales and
services

P P P CUP
General retail, primary use CUP P P CUP —
Grocery stores — P P — —
Heavy equipment sales and rental — — — CUP CUP
Hydroponic stores — CUP CUP — —
Lumber yards — — — CUP CUP
Multi-use commercial centers — CUP CUP CUP —
Pet shops — P P P —
Plant nurseries and garden supply stores — P P P CUP
Recreational vehicle sales and rental — — CUP — CUP
Restaurants – Large format CUP CUP CUP — CUP 21.10.060
–
Restaurants – Small format — P P P CUP 21.10.060
Restaurants – Accessory cafeterias — CUP CUP CUP CUP
Secondhand stores, pawn shops — CUP CUP — —
Specialized sporting goods store — P P CUP CUP
Tattoo establishments — CUP CUP — —

SERVICES
Ambulance services CUP — — CUP CUP
Automated teller machines (ATMs) P P P P P
Auto repair and maintenance, minor — CUP CUP CUP P
Auto repair and maintenance, major — — CUP CUP P
Banks and financial services P P P CUP —
Business support services — P P P P
Car wash, full service — CUP CUP — —
Car wash, self service — CUP CUP CUP —
Catering services — — — CUP P
Child day care and adult day care centers — CUP CUP CUP —

“Exhibit A”
Allowed Uses and Permit
Requirements for Commercial and
Manufacturing Zoning Districts
P Permitted Use
Specific
Use
Regs.

CUP Conditional Use Permit
required
— Use not allowed

PERMIT REQUIRED BY

DISTRICT
LAND USE (1) CP C1 C2 CM M1
SERVICES (con’t)
Contractor’s storage yard — — — — CUP
Gunsmiths — — — CUP CUP
Hotels and motels CUP CUP CUP CUP —
Medical services – Clinics, offices, and
laboratories
P P P — —
Medical services – Extended care P CUP CUP — —
Medical services – Hospitals CUP CUP CUP — —
Mortuaries CUP CUP CUP — —
Offices – Administrative, business, professional P P P P P Personal services, accessory use P P P — —
Personal services, primary use P P P — —
Pest control services — — — P P
Repair services for consumer products — P P CUP P
Semi-permanent makeup P P P — —
Service stations — CUP CUP — —
Storage, outdoor CUP CUP CUP CUP CUP
Storage, commercial self-storage (mini-storage) — — — — — Veterinarians, animal hospitals, kennels,
boarding
— CUP CUP — CUP

TRANSPORTATION AND COMMUNICATIONS
USES
Broadcast studios — — — CUP CUP
Heliports — — — — CUP
Parking lots and garages CUP CUP CUP CUP CUP
Transit stations and terminals — — — CUP CUP
Vehicle and freight terminals — — — CUP CUP
Wireless telecommunications facilities (3) Administrative wireless facilities permit (3)

21.28 Notes:
(1) See Chapters 21.66 through 21.84 of this title for land use definitions. See Section 21.02.020 regarding uses not listed.
(2) Emergency shelters are limited to no more than 30 occupants per site as a permitted use. Emergency shelters with more than 30 occupants per site are permitted subject to the approval of a CUP.

“Exhibit A”
(3) 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.
(4) On-premises beer and wine sales may be permitted per Section 21.10.060. (5) All breweries and distilleries may be permitted per Section 21.30.100. …”
SECTION 5
Section 21.15.030 is hereby amended in part to read as follows:
“…

21.15.030 Mixed-use district land uses and permit requirements.

Table 2-10 identifies the uses of land allowed in the mixed-use zone, 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 2-10

MIXED-USE DISTRICT LAND USE AND PERMIT REQUIREMENTS
P Permitted Use
Allowed Uses and Permit
Requirements for Mixed-Use Zoning
Districts
CUP Conditional Use
Permit required
— Use not allowed

PERMIT REQUIRED
LAND USE (1) MU-1 and MU-2 Specific Use
Regulations

MANUFACTURING AND PROCESSING USES
Manufacturing and processing uses (see
Chapter 21.10, Table 2-6, for expanded
list of uses)
—
Recycling—Small collection facility CUP

RECREATION, EDUCATION AND PUBLIC ASSEMBLY USES

“Exhibit A”
P Permitted Use
Allowed Uses and Permit
Requirements for Mixed-Use Zoning
Districts
CUP Conditional Use
Permit required
— Use not allowed

PERMIT REQUIRED
LAND USE (1) MU-1 and MU-2 Specific Use
Regulations
Accessory entertainment uses CUP
Artist studios (art, music, photography,
etc.) CUP P
Assembly facilities and nonprofit
institutions CUP
Billiard and pool halls CUP 21.15.040(c)(3)
Clubs, lodges, membership meeting halls CUP 21.15.040(c)(3) Dance halls CUP 21.15.040(c)(3)
Health and fitness centers greater than
5,000 sf -
Health and fitness centers less than
5,000 sf P
Indoor amusement/entertainment
facilities CUP 21.15.040(c)(3)
Libraries and museums P
Night clubs and bars —
Outdoor commercial recreation facilities —
Private residential recreational facilities P
Schools—Private CUP
Schools—Specialized training and
education CUP
Theaters and auditoriums CUP 21.15.040(c)(3)

RESIDENTIAL USES
Accessory dwelling units P
Affordable housing P
Caretaker’s quarters —
Cottage food operations P
Duplexes P (MU-2 only)
Emergency shelters (2) —
Home businesses P
Live-work units P
Mobile home parks —
Multi-family dwellings P
Residential accessory uses and
structures P
Rooming and boarding houses CUP
Residential care homes CUP
Single-family dwellings —
Single room occupancy (SRO) —
Supportive housing P
Transitional housing P

“Exhibit A”
P Permitted Use
Allowed Uses and Permit
Requirements for Mixed-Use Zoning
Districts
CUP Conditional Use
Permit required
— Use not allowed

PERMIT REQUIRED
LAND USE (1) MU-1 and MU-2 Specific Use
Regulations

RETAIL TRADE
Accessory retail sales P
Alcoholic beverage sales, off-premises CUP
Alcoholic beverage sales, on-premises CUP/P (4) 21.10.060 Antiques, art galleries, collectibles P
Auto parts sales P
Auto sales and rental, new —
Auto sales and rental, used —
Bakeries, retail P
Butcher shops P
Building material stores —
Convenience stores P
Department stores P
Drive-in and drive-through sales —
Drug stores, pharmacies P
Equipment sales and rental —
Furniture, furnishings & appliance stores P
Garden supply and equipment sales and
services —
General retail, primary use P
Grocery stores P
Heavy equipment sales and rental —
Hydroponic stores —
Lumber yards —
Multi-use commercial centers CUP
Pet shops (no kennels) P
Plant nurseries and garden supply stores —
Recreational vehicle sales and rental —
Restaurants—Large format CUP 21.10.060
Restaurants—Small format P 21.10.060
Restaurants—Accessory cafeterias CUP
Secondhand stores, pawn shops CUP
Specialized sporting goods store P
Tattoo establishments —

SERVICES
Adult day care—Large P 21.30.020
Adult day care—Small P 21.30.020
Ambulance services —
Automated teller machines (ATMs) CUP P

“Exhibit A”
P Permitted Use
Allowed Uses and Permit
Requirements for Mixed-Use Zoning
Districts
CUP Conditional Use
Permit required
— Use not allowed

PERMIT REQUIRED
LAND USE (1) MU-1 and MU-2 Specific Use
Regulations
Auto repair and maintenance, minor —
Auto repair and maintenance, major —
Banks and financial services P
Business support services P
Car wash, full service —
Car wash, self service —
Catering services (stand-alone) —
Child day care centers CUP
Contractor’s storage yard —
Day care—Large family day care homes P 21.30.020
Day care—Small family day care homes P 21.30.020
Gunsmiths —
Hotels and motels P
Medical services—Clinics, offices, and
laboratories P
Medical services—Extended care —
Medical services—Hospitals —
Mortuaries —
Offices—Administrative, business,
professional P
Personal services, accessory use P
Personal services, primary use P
Pest control services —
Repair services for consumer products P
Semi-permanent makeup P
Service stations —
Storage, outdoor —
Storage, personal self-service (ministorage) —
Veterinarians, animal hospitals, kennels,
boarding CUP 21.15.040(c)(3)

TRANSPORTATION AND COMMUNICATIONS USES
Broadcast studios —
Heliports —
Stand-alone parking lots and garages —
Transit stations and terminals —
Vehicle and freight terminals —
Wireless telecommunications facilities (3) Administrative wireless facilities permit (3) 21.28

“Exhibit A”
Notes:
(1) See Chapters 21.66 through 21.84 of this title for land use definitions. See Section 21.02.020 regarding uses not listed.
(2) Emergency shelters are limited to no more than 30 occupants per site as a permitted use.

Emergency shelters with more than 30 occupants per site are permitted subject to the approval of a CUP.
(3) 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.
(4) On-premises beer and wine sales may be permitted per Section 21.10.060. .…”
SECTION 6
Section 21.30.100 is hereby added as follows:
“…

21.30.100 Breweries and Distilleries.

This section provides location and operational standards for the provision of breweries and distilleries.
(a) Prior to, and as a condition to the opening an alcoholic beverage manufacturing use, the alcoholic beverage manufacturer shall submit a fully dimensioned site plan and floor plan to the planning department.
(b) Alcoholic beverage manufacturing uses, located in any of the commercial or manufacturing zones identified in this section, may not exceed 10,000 gross square feet, unless otherwise permitted by conditional use permit.
(c) A tasting room may not exceed a total of 2,000 square feet, unless otherwise permitted by conditional use permit. The area permitted for a tasting room shall not include any outdoor patio area. A tasting room consists of the floor area where alcoholic beverages are consumed, including any bar and seating areas but shall not consist of area within the alcoholic beverages manufacturing licensed premises devoted to restrooms serving the tasting room. An outdoor patio area may be permitted provided it is not located in any required parking space or access way. An outdoor patio area may not exceed 1,000 square feet. (d) A grain silo may be permitted to be located outside of the building serving as the alcoholic beverage manufacturing use. The grain silo may not be located in any required parking space or access way. One sign may be permitted on the grain silo with a maximum size of 100 square feet. The silo sign is permitted in addition to any permitted wall signs or monument signs.
(e) Outdoor storage is prohibited except as described in this section.

“Exhibit A”
(f) The property upon which an alcoholic beverage manufacturing use is operated shall be permanently maintained in an orderly fashion by the provision of regular landscape maintenance, removal of trash and debris, and removal of graffiti within twenty-four hours from the time of occurrence.
(g) Any proposed roof-mounted equipment shall be completely screened from view.

This screening information shall be specifically shown on the plans submitted for a building permit.
(h) A security plan in a form satisfactory to the Fountain Valley Police Department shall be submitted to and approved by the Fountain Valley Police Department. The plan shall be formulated to deter unlawful conduct of employees and patrons, to promote the safe and orderly assembly and movement of persons and vehicles, and to prevent disturbances to surrounding uses and the neighborhood by excessive noise created by patrons entering or leaving the alcoholic beverage manufacturer’s licensed premises.
(i) Parking lots, driveways, circulation areas, aisles, passageways, recesses and grounds contiguous to buildings making up an alcoholic beverage manufacturing use shall be provided with enough lighting to illuminate and make clearly visible the presence of any person on or about the alcoholic beverage manufacturer’s licensed premises during the hours of darkness and shall provide a safe and secure environment for all persons, property, and vehicles on site.
(j) There shall be no admission fee, cover charge, nor minimum purchase required. (k) Signs shall be posted inside the business near the exit door stating: “No alcohol allowed past this point.”
(l) The number of persons shall not exceed the maximum occupancy load as determined by the Fire Department. Signs indicating the occupant load shall be posted in a conspicuous place on an approved sign near the main exit from the room. (m) There shall be no live entertainment, amplified music or dancing permitted on the alcoholic beverage manufacturer’s licensed premises at any time without issuance of a temporary use permit.
(n) The display of alcoholic beverages shall not be located outside of a building or within five feet of any public entrance to the building. (o) An alcoholic beverage manufacturer shall not serve brands of alcoholic beverages distributed by another alcoholic beverage manufacturer. The alcoholic beverages served shall be limited to the products that are authorized to be sold by the alcoholic beverage manufacturer under its license issued by the California Department of Alcoholic Beverage Control.

(p) Food trucks are permitted to operate onsite.
(1) Location And Placement Requirements: The business operating location must be on private property within the specified zones as allowed by chapter 21.30.100 of this title, or as otherwise authorized by applicable city ordinance, subject to the requirements below:
(2) Parking on a park strip, or otherwise landscaped area is not allowed. (3) A mobile food business shall park on a hard surface. Alternatives to asphalt and

“Exhibit A”
cement may be approved by the community development director. (4) Mobile food business vehicles must be parked so that neither the vehicle nor the customers block driveways of existing buildings or uses, or in such a manner as to create a traffic hazard.
(5) No mobile food business shall occupy required parking stalls of the primary use. (6) No mobile food business shall interfere with the internal parking lot circulation. (7) Mobile food businesses shall not use the public right of way unless otherwise allowed by ordinance.
(8) Power required for the operation of the mobile food truck may be self-contained or by the use of public or private power sources upon providing written consent from the property owner.
(9) All materials generated from a mobile food business that are to be disposed of shall be disposed of properly.
(10) Mobile food businesses shall comply with all other applicable city ordinances. …”
SECTION 7
Section 21.90.020(2) Definitions “B.” is hereby amended to amend the definition of Breweries and Distilleries follows:
“…
Definitions “B.”
“Bakeries, retail” means a retail business where bread, pastries and other baked goods are produced for retail sale from the site, primarily for off-site consumption. “Balcony” means a platform that projects out from the wall of a structure, typically on the second floor, is not supported by columns or pillars, and is surrounded by a rail or parapet. A balcony may, or may not, contain a roofed covering.
“Banks and financial services” means financial institutions including:
(A) Banks and trust companies;
(B) Credit agencies;
I Holding (but not primarily operating) companies;
(D) Lending and thrift institutionI(E) Other investment companies; (F) Securities/commodity contract brokers and dealers;
(G) Security and commodity exchanges;
(H) Vehicle finance (equity) leasing agen“ies.

“Exhibit A”
"B”droom" means a room capable of being used for sleeping purposes that is separable from other rooms by walls and a door, and that has access to a bathroom including dens, libraries, studies and all-purpose r“oms.
”Block" means all property fronting upon one side of a street between intersecting and intercepting streets, or between a street and a waterway, dead end street, park, or city boundary. An intercepting street shall determine only the boundary of the block on the side of a street which it intercepts.
“Breweries and Distilleries with onsite alcohol consumption/ Breweries and Distilleries with onsite alcohol consumption and dining” means an accessory use associated with an alcoholic beverage manufacturing facility that is devoted to the purchase, consumption, and tasting of beer, wine or distilled spirits produced on-site. A facility with a tasting room may also have a full service kitchen and may prepare and serve food on- site pursuant to the conditions of approval of the associated small or large format restaurant permit. "Broadcasting studios" means commercial and public communications uses including radio and television broadcasting and receiving stations and studios, with facilities entirely within buildings.

Transmission and receiving apparatus, including antennas and towers, are included under the definition of "telecommunications facilities."
"Building material stores" means retail establishments selling lumber and other large building materials, where most display and sales occur indoors. Includes paint, wallpaper, glass, fixtures.

Includes all these stores selling to the general public, even if contractor sales account for a major proportion of total sales. Includes incidental retail ready-mix concrete operations, except where excluded by a specific zoning district. Establishments primarily selling electrical, plumbing, heating, and air conditioning equipment and supplies are classified in "warehousing and distribution." Hardware stores are listed in the definition of "general retail stores," even if they sell some building materials.
"Business support services" means establishments primarily within buildings, providing other businesses with services including maintenance, repair and service, testing, rental, etc., also includes:
(A) Blueprinting;
(B) Business equipment repair services (except vehicle repI); (C) Commercial art and design (production);
(D) Computer-related services (rental, Iair);
(E) Copying, quick printing and blueprinting services;
(F) Equipment rental businesses within buildings (rental yards are "Storage Yards an” Sales Lots");
(G) Film processing laboratories;
(H) Heavy equipment repair services where repair occurs on the client site; (I) Janitorial services;

“Exhibit A”
(J) Mail advertising services (reproduction and shipping)“ (K) Other "heavy service" business services;
(L) Outdoor advertising services;
(M) Photocopying;
(N) Photofinishing;
(O) Protective services (other than office related);
(P) Soils and materials testing laboratories;
(Q) Windo“ cleaning.
"”butcher shop" means a retail store or portion of a larger store selling food items, which sells meat, fish, fowl and poultry products, and which may on the same site cut the products sold from larger animal carcasses prior to packaging and/or sale. Does not include the slaughtering of live animals on the same site.
…”
SECTION 8
Section 21.90.020(6) Definitions “F.” is hereby amended to amend the definition of Food and beverage manufacturing establishments as follows:
“…
“Fabric product manufacturing” means manufacturing establishments fabricating clothing, draperies and other products by cutting and sewing purchased textile fabrics, and related materials such as leather, rubberized fabrics, plastics and furs. Custom tailors and dressmakers not operating as a factory and not located on the site of a clothing store ("general retail stores") are instead included under "personal services."
“Family” means one or more persons occupying a premises and living as a single nonprofit housekeeping unit, as distinguished from a group occupying a boarding or lodging house, hotel, club or similar dwelling for group use. A family shall be deemed to include domestic help employed by the family.
“Feasible” means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors. “Floor area ratio (FAR)” means the ratio of floor area to total lot area. FAR restrictions are used to limit the maximum floor area allowed on a site. The maximum floor area of all structures (measured from exterior wall to exterior wall) permitted on a site shall be determined by multiplying the floor area ratio (FAR) by the total net area of the site (FAR x net site area = maximum allowable floor area). For the purpose of calculating floor area, floor area shall not include carports, garages, parking garages, elevator shafts, mechanical rooms, and exterior patios associated with the use within the same development, except as indicated in Section 21.08.040, Table 2-3.

“Exhibit A”
FIGURE 7-1 FLOOR AREA RATIO
“Flower tower” means a structure that integrates a monopole into a light pole or other utility pole. "Food and beverage manufacturing" means manufacturing establishments producing or processing foods and beverages for human consumption, and certain related products.

Includes:
(A) Bakeries;
(B) Bottling plants;
(C) Breweries and Distilleries;
(D) Candy, sugar and confectionery products;
(E) Manufacturing;
(F) Catering services separate from stores or restaurants; (G) Coffee roasting;
(H) Dairy products manufacturing;
(I) Fats and oil product manufacturing;
(J) Fruit and vegetable canning, preserving, related processing;

“Exhibit A”
(K) Grain mill products and by-products;
(L) Meat, poultry and seafood canning, curing;
(M) By-product processing;
(N) Soft drink production;
(O) Miscellaneous food item preparation from raw products.

May include tasting and accessory retail sales of beverages produced on-site. A tasting facility separate from the manufacturing facility is included under the definition of "night clubs and bars" if alcoholic beverages are tasted, and under "restaurant" if beverages are non-alcoholic.

Does not include: bakeries which sell all products on-site, which are included in the definition of "general retail stores"; or beer brewing as part of a brew pub, bar or restaurant. "Furniture, furnishings and equipment stores" mean stores engaged primarily in selling the following products and related services, including incidental repair services:
(A) Draperies;
(B) Floor coverings;
(C) Furniture;
(D) Glass and chinaware;
(E) Home appliances;
(F) Home furnishings;
(G) Home sound systems;
(H) Interior decorating materials and services;
(I) Large musical instruments;
(J) Lawn furniture;
(K) Movable spas and hot tubs;
(L) Office furniture;
(M) Other household electrical and gas appliances;
(N) Outdoor furniture;
(O) Refrigerators;
(P) Stoves;
(Q) Televisions.
…”
SECTION 9

“Exhibit A”
Section 21.90.020(18) Definitions “R.” is hereby amended to amend the definition of Small and Large Format Restaurant establishments as follows:
“…
"Radiofrequency radiation" means electromagnetic radiation in the portion of the spectrum from three kilohertz to three hundred gigahertz.
"Recreational vehicle (RV)" means a motor home, travel trailer, truck camper or camping trailer, with or without motive power, originally designed for human habitation for recreational, emergency or other occupancy, which meets all of the following criteria:
(A) It contains less than three hundred twenty square feet of internal living room area, excluding built-in equipment, including wardrobe, closets, cabinets, kitchen units or fixtures, and bath or toilet rooms;
(B) It contains four hundred square feet or less of gross area measured at maximum horizontal projections;
(C) It is built on a single chassis; and
(D) It is either self-propelled, truck-mounted, or permanently towable on the highways without a towing permit.
"Recycling Facilities." This land use type includes a variety of facilities involved with the collection, sorting and processing of recyclable materials. (A) "Collection facility" means a center where the public may donate, redeem or sell recyclable materials, which may include the following, where allowed by the applicable zoning district:
(i) Reverse vending machine(s);
(ii) Small collection facilities which occupy an area of three hundred fifty square feet or less and may include:
a. A mobile unit,
b. Bulk reverse vending machines or a grouping of reverse vending machines occupying more than fifty square feet, and
c. Kiosk-type units which may include permanent structures. (iii) Large collection facilities which occupy an area of more than three hundred fifty square feet and/or include permanent structures.
(B) "Mobile recycling unit" means an automobile, truck, trailer or van used for the collection of recyclable materials, carrying bins, boxes or other containers. (C) "Processing facility" means a structure or enclosed space used for the collection and processing of recyclable materials for shipment, or to an end-user's specifications, by such means as baling, briquetting, cleaning, compacting, crushing, flattening, grinding, mechanical sorting, remanufacturing and shredding. Processing facilities include the

“Exhibit A”
following types, both of which are included under the definition of "scrap and dismantling yards," below:
(i) Light processing facility occupies an area of under forty-five thousand square feet of collection, processing and storage area, and averages two outbound truck shipments each day. Light processing facilities are limited to baling, briquetting, compacting, crushing, grinding, shredding and sorting of source separated recyclable materials sufficient to qualify as a certified processing facility. A light processing facility shall not shred, compact, or bale ferrous metals other than food and beverage containers; and
(ii) A heavy processing facility is any processing facility other than a light processing facility.
(D) "Recycling facility" means a center for the collection and/or processing of recyclable materials. A "certified" recycling or processing facility is certified by the California Department of Conservation as meeting the requirements of the California Beverage Container Recycling and Litter Reduction Act of 1986. A recycling facility does not include storage containers located on a residentially, commercially or industrially designated site used solely for the recycling of material generated on the site. (E) "Recycling or recyclable material" means reusable domestic containers and other materials which can be reconstituted, remanufactured, or reused in an altered form, including glass, metals, paper and plastic. Recyclable material does not include refuse or hazardous materials.
(F) "Reverse vending machine" means an automated mechanical device which accepts at least one or more types of empty beverage containers and issues a cash refund or a redeemable credit slip with a value not less than the container's redemption value, as determined by state law. These vending machines may accept aluminum cans, glass and plastic bottles, and other containers.

A bulk reverse vending machine is a reverse vending machine that is larger than fifty square feet, is designed to accept more than one container at a time, and issues a cash refund based on total weight instead of by container. "Religious facilities" means facilities operated by religious organizations for worship, or the promotion of religious activities, including churches, mosques, synagogues, temples, etc. and religious schools; and accessory uses on the same site, such as living quarters for ministers and staff, and child day care facilities where authorized by the same type of land use permit required for the religious facility itself. Other establishments maintained by religious organizations, such as full-time educational institutions, hospitals and other poten-tially related operations (such as a recreational camp) are classified according to their respective activities. "Research and development (R&D)" means indoor facilities for scientific research, and the design, development and testing of electrical, electronic, magnetic, optical and mechanical components in advance of product manufacturing, that are not associated with a manufacturing facility on the same site. Includes chemical and biotechnology research and development. Does not include computer software companies, soils and other materials testing laboratories, or medical laboratories.

“Exhibit A”
"Residential accessory uses and structures" means any use and/or structure that is customarily a part of, and clearly incidental and secondary to, a residence and does not change the character of the residential use. These uses include the following detached accessory structures, and other similar structures normally associated with a residential use of property:
(A) Garages;
(B) Gazebos;
(C) Greenhouses;
(D) Spas and hot tubs;
(E) Storage sheds;
(F) Studios;
(G) Swimming pools;
(H) Tennis and other on-site sport courts;
(I) Workshops.

Also includes the indoor storage of automobiles (including their incidental restoration and repair), personal recreational vehicles and other personal property, accessory to a residential use. Does not include home satellite dish and other receiving antennas for earth-based TV and radio broadcasts. "Residential care homes" means facilities providing residential social and personal care for children, the elderly, and people with limited ability for self-care, but where medical care is not a major element. Includes: children's homes; board and care homes; transitional houses; rehabilitation centers; self-help group homes. Note: Convalescent homes, nursing homes and similar facilities providing medical care are included under the definition of "Medical service— Extended care."
"Residential district or zone" means any of the residential zoning districts established by Section

21.04.020 (Zoning districts established) of this title. "Restaurant" means a retail business selling food and beverages prepared on the site, for on- or offpremises consumption. These include eating establishments where customers are served from a walk-up ordering counter for either on- or off-premises consumption, and establishments where most customers are served food at tables for on-premises consumption, but may include providing food for take-out. Also includes coffee houses. For permitting purposes, the city categorizes restaurants as:
"Restaurant, large format" means establishments with fifty-one seventy-six seats or more. "Restaurant, small format" means establishments with fifty seventy-five seats or less.

“Exhibit A”
"Restaurant—outdoor dining" means an outdoor area where tables and seating are provided and food and/or beverages are served in outdoor areas. Outdoor dining areas may be for the common use by several tenants or under the exclusive control of a single operator. "Review authority" means the individual or official city body (the community development director, planning commission or city council) identified by this title as having the responsibility and authority to review, and approve or disapprove the permit applications described in Chapter 4 (Development Code Administration).
"Roof-mounted" means mounted above the eave line of a structure. …”
SECTION 9
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 10
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 , 2025.

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
___________________________
Attorneys for the City

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
Code Amendment No. 25-06
City of Fountain Valley - Citywide

AMEND THE FOUNTAIN VALLEY MUNICIPAL CODE (FVMC) SECTIONS

21.10.030, 21.15.030, 21.90.020, ALLOWING FOR RESTAURANTS, ARTIST STUDIOS AND ATMS, AND ADD SECTION 21.30.100 ALLOWING FOR BREWERIES AND DISTILLERIES IN COMMERCIAL AND MANUFACTURING ZONES.

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).

Ron Vargas, Associate Planner 714-593-4479
✔

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: December 16, 2025
Members of the City Council
SUBJECT: Accept the bids and award a construction contract to WGJ Enterprises, Inc. dba:

PCI for the Signing and Striping Improvements for 11 School Areas, Project No. 24043, in the amount not-to-exceed $84,750.

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
Consistent with best practices and based on current Federal and State standards, staff completed an assessment of existing roadway signing and striping improvements that are located near 13 City of Fountain Valley schools. The assessment, which is part of staff routine monitoring of City infrastructure, identified varying degrees of improvements at 12 of the 13 locations.

Improvements for one (1) of the identified locations, near Robert Gisler Elementary School, were recently implemented through the Residential Roadway Rehabilitation Project (City Quadrant E7), which completed construction in August 2025. Therefore, staff recommends that the City Council accept bids and award a construction contract for Signing and Striping Improvements for the 11 remaining locations.

The construction of this project is funded by the Gas Tax Fund. There is adequate funding within the FY 2025/26 Adopted Budget.

DISCUSSION
Utilizing the City’s on-call design consultant, AGA Engineer’s Inc., the Engineering Division conducted a signing and striping assessment to evaluate signing and striping at 13 school areas citywide. The assessment identified varying degrees of improvements for 12 locations based on current Federal and State standards.

Signing and Striping Improvements for Eleven (11) School Areas December 16, 2025

The signing and striping improvements near Robert Gisler Elementary School were implemented through the Residential Roadway Rehabilitation Project (City Quadrant E7). As such the project scope includes the following 11 school areas: Ethan B. Allen Elementary School, Fulton Middle School, Kazuo Masuda Middle School, Monroe Elementary Language Academy, Northcutt Elementary School, Urbain H. Plavan Elementary School, Himatsu Tamura Elementary School, Vista View Middle School, Fountain Valley High School, and Los Amigos High School.

The FY 2025/2026 Signing and Striping Improvements for 11 School Areas will consist of a combination of the following methods for each school area:
 Furnish and install new signs on existing posts, new posts, and streetlights  Remove and relocate existing signs
 Install proposed thermoplastic crosswalks
 Install advance warning pavement markings for school crosswalks  Install proposed limit lines for midblock crossings
 Install pavement markings and signs for new stop signs  Restoration of damaged school warning pavement markings

Signing and Striping Improvements for Eleven (11) School Areas December 16, 2025

PROCUREMENT
On October 29, 2025, the City publicly advertised Request for Bid (RFB) No. 25-012, Signing and Striping Improvements for 11 School Areas, Project No. 24043. On November 19, 2025, the City received two (2) bids.

Contractor Total Bid Amount

1. WGJ Enterprises, Inc. dba: PCI $84,750

2. Global Builders Inc $249,888
Engineer’s Estimate: $110,300.00
PCI was the lowest responsive and responsible bidder for the Signing and Striping Improvements for 11 School Areas, Project No. 24043, and submitted a bid in accordance with City requirements and purchasing policies.

PCI is a specialized striping contactor while Global Builders Inc. is a general contractor that focuses on structural construction. Due to the differing licenses and experiences, PCI provided a more competitive bid than Global Builders and is equipped to complete the project within their proposed bid and allocated time.

PCI has completed similar projects for other California municipalities including in the City of San Jacinto, City of Vernon, City of Bell Gardens, City of Torrance, and Los Angeles Unified School District.

FISCAL REVIEW
The adopted FY 2025/26 budget includes adequate funding for this project. The budget allocations and project expenses/costs are as follows:

FY 2025/26 Project Budget
Funding Source Project Budget Amount
Gas Tax $150,000
Total Budget $150,000
Construction Project Cost
Vendor/Item Amount
Construction (WGJ Enterprises, Inc. dba: PCI) $84,750
10% Contingency $8,475
Project Plans and Bid Documents Printing Costs $3,000
Staff Time $8,000
Total Project Costs $104,225
*Purchase Orders to be issued administrativelyNote that, as in all of the City’s Public Works contracts, the contract itself provides the Director of Public Works authority to issue change orders of up to 10% of the original contract amount. When the Council approves the contract, it approves this authority. Ten percent is generally considered within the normal range of changed conditions on a Public Works construction project and, by providing change order authority upfront, Council helps Page 99 Signing and Striping Improvements for Eleven (11) School Areas December 16, 2025

to reduce the possibility of delay damages that could be incurred when a contractor must stop work and wait for authorization to proceed.

Total Project Cost

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
The Attorney for the City has reviewed and approved the subject contract.

ALTERNATIVES
Alternative No. 1: Accept the bids and award a construction contract to WGJ Enterprises, Inc. dba: PCI for the Signing and Striping Improvements for Eleven (11) School Areas, in the amount not-to-exceed $84,750.

Alternative No. 2: Reject all bids and do not move forward with the award of a contract.

Alternative No. 2 is not the recommended alternative as the bids received are competitive bids. PCI is a reputable contractor that has completed many similar municipal projects throughout Southern California. Not awarding this contract will not allow the City to realize these school area improvements.

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

School Area Signage (Project No. 24043) Amount
Design/Planning for Fiscal Year 2025/26 Signing and Striping Improvements for Eleven (11) School Areas
$45,770
Construction $84,750
Contingency – Construction $8,475
Project Plans and Bid Documents Printing Costs $3,000
Staff Time $8,000
Total $149,995

Signing and Striping Improvements for Eleven (11) School Areas December 16, 2025

Accept the bids and award a construction contract to WGJ Enterprises, Inc. dba: PCI for the Signing and Striping Improvements for Eleven (11) School Areas, in the amount not-toexceed $84,750.

Support by: Terri Phan, Management Aide
Prepared by: Peter Nguyen, Engineering Technician II
Jessenia Penaloza, Assistant Engineer
Recommended by: Kyle Knoke, P.E., Senior Civil Engineer Reviewed by: Temo Galvez, P.E., Deputy Public Works Director/City Engineer Approved by: Scott Smith, P.E., Director of Public Works Fiscal Review by: Ryan Smith, Finance Director / City Treasurer Approved by: Maggie Le, City Manager
Attachment 1: WGJ Enterprises, Inc. dba: PCI contract

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: December 16, 2025
Members of the City Council
SUBJECT: Approval of a Concession Agreement with Borden & Robinson, LLC, DBA, DBA Dos Mamacitas for Snack Bar Operations at the Fountain Valley Sports Par 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 businessess/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
A Request for Proposal (RFP) for Concession Operations at the Concession Stand located adjacent to ballfields # 1-4 at the Fountain Valley Sports Park, 16400 Brookhurst St, was published through the City of Fountain Valley’s electronic procurement system to gather information about competition, standard operations, and other features available in the marketplace. Following the RFP evaluation process and interview, staff recommends awarding a Concessions Operations agreement with Borden and Robinson. The agreement will entail all aspects of the Concession Operations at the concession stand located in the Sports Park, which includes food and drinks along with facility maintenance for visitors and park patrons.

DISCUSSION
The Fountain Valley Sports Park is located at 16400 Brookhurst Street, Fountain Valley, CA, 92708. It is operated by the City of Fountain Valley Recreation and Community Services Department. The on-site concession facility, approximately 565 square feet and adjacent to a central plaza serving four (4) ballfields, is designed to provide food and beverages to visitors.

As a major public gathering area, the sports park relies on the selected concessionaire not only to offer a variety of food and drink options, but also to assist with maintaining the facility for the comfort and enjoyment of park patrons.

Concessionaire will be responsible for the food establishment located at the Fountain Valley Recreation and Sports Park, located at 16400 Brookhurst, by Fields #1, #2, #3, #4 on the

Agreement with Borden & Robinson
December 16, 2025

property. The Concessionaire will provide a comprehensive snack bar operation to the general public, including hours of operation during, but not exclusive to, leagues and tournaments and any city-related activity. Suggested hours of operation are: Monday through Friday, 6 p.m. to 9 p.m.; Saturdays, 8 a.m. to 9 p.m.; Sundays, 8 a.m. to 6 p.m. or when activities are scheduled.

These hours of operation shall be set in writing by mutual agreement of both parties.

The term of this agreement will be for three (3) years commencing on January 1, 2026, and expiring on December 31, 2028. With the option of two (2), 2-year extensions not to exceed a seven (7) year-term.

Concession operations are a key component to the overall character of the park. The selected proposer will be required to satisfy the following conditions as part of the concession operations:
 The operator will be responsible for hiring the necessary personnel to conduct the daily operations of the concession. The operator will comply with all federal, state, and local laws related to minimum wage, social security, nondiscrimination, ADA, unemployment compensation, and workers’ compensation. Required by the City, employees shall wear a uniform for identification purposes. The concessionaire must comply with all applicable Orange County Health Care Agency policies, regulations, and health orders governing food facility operations.
 Hours of operation may vary, based upon seasons and weather. Concessionaire is expected to meet the needs of the regularly scheduled and permitted activity at ballfields # 1-4.
 The concessionaire is expected to serve quality food and drinks at an affordable price, consistent with industry standards to meet the needs of visiting public. Simple food items such as hamburgers, hot dogs, pizza, and assorted snacks are offered at competitive prices, along with a selection of new menu options for patrons. Beverage offerings should include at a minimum, sodas, juice drinks, and bottled water. Beer and wine sales are not permitted by the city.

RFP and Selection Process
In accordance with City’s Purchasing Policies, The City of Fountain Valley issued a Request for Proposal (RFP) for a Concession Operations (RFP 25-013) on October 15, 2025. The RFP was publicly advertised through Planetbids with an invitation through the City’s website. Twelve (12) companies showed interest in the RFP and downloaded the RFP. The RFP closed on November 13, 2025, and six (6) companies submitted proposals. First, each proposal was evaluated on a 10-point system with a weighted score of 800 in three areas, such as: Scope of work/Work Plans, Qualifications and Experience, and Past Performance/References. Proforma (potential cost and revenue) were opened and added to the table with a weighted score of 200.

After reviewing the scores, the top three (3) proposers that best fit the City’s needs were selected to be interviewed. After the interview, the interviewees discussed the 3

Agreement with Borden & Robinson
December 16, 2025

proposers in great length where the main deciding factors included, but not limited to; community involvement, providing services, offering a not so typical menu yet flexible.

After all was reviewed, Borden and Robinson, DBA Dos Mamacitas were the overall selected proposers due to their innovative menu, proven support for the community and special events, and that they are committed to engaging the community and collaborating with city staff. With years of experience being a patron at the park and a local business owner, they proposed a favorable menu with items that staff believe will be a successful with youth and adults attending events at the FV Sports Park. Sharing the need to be an integral part of the community and making a difference in their product was another key factor selection.

As presented in their proposal;
Borden & Robinson is committed to providing high-quality, reliable service to meet the City’s needs. We appreciate the opportunity to participate in this competitive process and look forward to the possibility of working collaboratively with the City of Fountain Valley.

The organization is structured to ensure a single, streamlined channel of communication and accountability, placing the Project Manager (Johnny & Shelby Borden) as the central point of contact for the City. The City (Fountain Valley) maintains the executive oversight role, primarily interacting with the Project Manager for all project requirements set forth with the contract. The Project Manager: is dedicated to managing all contractual, logistical, and reporting obligations. They serve as the single point of accountability, ensuring all Key Staff meet performance metrics and deadlines. Key Staff (Johnny & Shelby Borden and Melissa Robinson) will execute the day-to-day tasks required by the scope of work, maintaining the concessions, personnel, operating hours, equipment and menu items.

With more than 23 years of experience in the community and restaurant business, Borden and Robinson brings extensive knowledge of food service operations, product sales, and customer service to the proposed concession facility. The proposed operator has been highly visible at City of Fountain Valley events and has an established history of partnering with the City to support and help manage community programs and activities. This background reflects a strong understanding of the City’s needs, a proven ability to collaborate with municipal staff, and a long-standing commitment to community involvement and high-quality service to residents and visitors.

The proposed operator presented a business model the best met the criteria desired by the Community Services Department and the City of Fountain Valley.

Agreement with Borden & Robinson
December 16, 2025

Company Experience:

Lamppost Pizza, located in the City of Fountain Valley, has been owned and operated by Johnny & Shelby Borden for the past 25 years, providing exceptional food service, consistent community engagement, and reliable customer satisfaction. For over more than two decades, we have built a strong reputation for quality, cleanliness, and dependable day-to-day operations. Our long-standing presence in Fountain Valley reflects our commitment to excellent service and our ability to maintain successful business operations in a high-traffic, customer-focused environment.

Food Service & Snack Bar Experience
In addition to full-service restaurant operations, our company has extensive experience with snack bar–style service, including high-volume, fast-turnaround food preparation and efficient point-of-sale interactions. Throughout our 25-year history, we have supported various community sport and school events, demonstrating our ability to operate in diverse service settings that require:
● Rapid order fulfillment
● Streamlined menus designed for quick service
● Strict health, safety, and sanitation compliance
● Strong customer interaction and community-facing professionalism ● Efficient staffing and scheduling to meet fluctuating demand These operations directly align with the requirements outlined in the RFP and demonstrate our capacity to manage concession-style or snack-bar environments effectively. We have been supplying USSSA, Girls fast pitch softball and pony baseball for all their snack bar needs.

Proposed Menu
Morning Treats:

Coffee ($2.00)
Hot Chocolate (w/whipped cream) ($2.00)
Cold brew with sweet cream ($4.00)
Donuts ($2.50)
Breakfast Burrito ($13.00)
Chorizo/ eggs/ cheese/ potatoes
Breakfast Bowl ($6.00)
Brown Sugar Oats/ Banana chips/ walnuts/ raisins
Yogurt Parfait ($6.00)
Greek yogurt/ berry compote/ granola
Lunch/Dinner:

The Smashburger($13.00)
ground chuck/ cheddar/ garlic dill/pickle/ onion/ secret sauce/ classic white bun
Border Dog ($13.00)
All beef jumbo dog wrapped in bacon/ bell peppers/ onions/ jalapeno dijon/ Hawaiian bun
Plain Dog ($8.00)

Agreement with Borden & Robinson
December 16, 2025

Street Tacos ($13.00)
3 street tacos/ choice of protein/ cilantro/ onions/ salsa

FISCAL REVIEW
Concessionaire will pay the City 10% of the Total Gross Receipts for the first three (3) years of the agreement (January 1, 2026 – December 31, 2028.) Concessionaire must submit the snack bar receipt form with each monthly payment. Failure to do so will require the Concessionaire to supply monthly bank statements. Following the conclusion of the third (3rd) year of the Agreement, the parties will meet and confer in good faith to review Total Gross Receipts and revenue paid to the City, and may, by written amendment approved by both parties adjust the percentage of Total Gross Receipts payable to the City for the remainder of the term.

The Concessionaire will pay the City on a monthly basis 10% of the total Gross Receipts for the first three-year term of this Agreement. The projected sales for year 1 are $255,000, in return the city would receive approximately $25,500.

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
Attorney for the City reviewed and approved the agreement.

ALTERNATIVES
Alternative No. 1:

Alternative No. 2:

RECOMMENDATION
Approve the agreement with Borden & Robinson DBA Dos
Mamacitas for Concession Operations located adjacent to ball fields # 1-4 at the Fountain Valley Sports Park, 16400 Brookhurst St.

Do not approve the agreement with Borden & Robinson DBA Dos Mamacitas for Concession Operations located adjacent to ball fields # 1-4 at the Fountain Valley Sports Park, 16400 Brookhurst.

Staff is requesting City Council approval of Alternative No. 1: Approve the agreement with Borden & Robinson DBA as Dos Mamacitas for Concession Operations located adjacent to ballfields # 1-4 at the Fountain Valley Sports Park, 16400 Brookhurst St.

Prepared by: Christie Araiza, Recreation Manager
Reviewed by: Rob Frizzelle, Community Services Director Fiscal review by: Ryan Smith, Finance Director

Agreement with Borden & Robinson
December 16, 2025

Approved by: Maggie Le, City Manager
Attachments:

1. Snack Bar Concession Agreement

2. Borden & Robinson Proposal

3. RFP 25.013 Concession Operations

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: December 16, 2025
Members of the City Council
SUBJECT: Approval of a professional services contract with Baker Tilly for a comprehensive organizational assessment of the Police Department in a not-to-exceed amount of $75,258; approval of a $15,000 contingency, and a Budget Amendment to appropriate $90,258 from the General Fund into the Police Department Professional Services Fund – Contracts.

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:

A Request for Proposal (RFP) for a Police Department Organizational Assessment was published through the City of Fountain Valley’s electronic procurement system to gather information about competition, standard operations, and other features available in the marketplace. Following the RFP evaluation process, Staff recommends awarding a professional services contract to Baker Tilly for a comprehensive organizational assessment of the Police Department. The six-month assessment will evaluate operational efficiencies, organizational structure, staffing resources, workload, information technology, and policy review.

DISCUSSION:

Staff recently discussed strategies to maximize efficiencies with current resources and develop a detailed plan regarding sworn and professional services staffing, including the need to evaluate Department operations for operational efficiencies. To achieve this, Staff identified an organizational assessment as a priority project. The goal of the project is to evaluate operational effectiveness, resource allocation, and strategic alignment of divisions within the Police Department.

POLICE DEPARTMENT ORGANIZATIONAL ASSESSMENT
December 16, 2025

The selected vendor’s scope of work will assess and recommend effectiveness in the following areas:

A. Organizational Leadership
B. Administration and Staffing
C. Patrol Services
D. Data and Technical Equipment
E. Recruitment/Retention
F. Dispatch Structure and Protocol
G. Schedule and Beat Design
H. Community Engagement
I. Technology Evaluation
J. Organization Culture
Project Timeline
The assessment will be conducted over six months, following five core tasks:

Activity 1 – Start project
 Planning meeting with key City and Police Department leaders.  Introduce respective teams.
 Ensure the plan of work and schedule are clear.
 Establish good working relationships.

Activity 2 – Gather information and obtain input
 Review documents and data.
 Conduct interviews with Department leadership to assess operations, organizational structure, Department priorities, and challenges and opportunities for improvement.
 Focus group with Department employees at all levels.
 Administer employee survey of the Department to obtain the broadest level of suggestions and input, and to convey that all staff viewpoints will be considered.
 Observe field operations, briefings, training sessions, or other Department activities.

Activity 3 – Conduct analysis
 Workload, staffing, operations, and organization structure of the Department.
 Determine officers, supervisors and support staff needed by function to achieve level-of-service goals.
 Assess organizational structure, spans of control, rank structure, administration and support personnel, and special unit staffing to assess whether an alternative organizational structure would improve efficiency and delivery of services.
 Analyze key job descriptions to determine if there are opportunities to modify, reduce, civilianize or reclassify certain positions.

POLICE DEPARTMENT ORGANIZATIONAL ASSESSMENT
December 16, 2025

 Evaluate effectiveness of current patrol zones (beats) based on response times and resource deployment considering workload and staffing, unit availability and deployment of allocated units.
 Assess any additional services that can be enhanced or handled with improved technology.
 Evaluate partnerships, shared services, shared resources and contracted services.
 Examine performance objectives including the ratio of calls for service available for proactive/discretionary time.

Activity 4 – Report results
 Prepare a draft project report to include analysis of relevant issues and recommendations to improve the efficiency of the Department and ensure it has proper staffing and resources commensurate with the services it provides.
 The Police Department team has an opportunity to review and comment on the detailed analysis before the final report is prepared.  Finalize project report to include a rich discussion of analysis and recommendations.

Activity 5 – Support implementation
 Baker Tilly will prepare a draft IAP. This is an executable roadmap that details the specific steps needed to accomplish each of the recommendations included in the report. It will include suggested priorities for each recommendation (short-, medium- and long-term) and assigned responsibility.

PROCUREMENT
In accordance with City’s Purchasing Policies, the City of Fountain Valley issued a Request for Proposal (RFP) for a Police Department Organizational Assessment (RFP 25-014) on October 8, 2025. The RFP was publicly advertised through Planetbids with an invitation through the City’s website. Twenty-three (23) companies showed interest in the RFP and downloaded the RFP. The RFP closed on November 6, 2025, and three (3) companies submitted proposals.

An evaluation committee from the Police Department reviewed all proposals. Vendors were evaluated based on their understanding of the Police Department’s needs, relevant municipal experience, available resources, including adequate staffing and expertise to handle all assessment tasks, references from similar California cities, and cost. Cost proposals ranged from $269,000-$76,000.

POLICE DEPARTMENT ORGANIZATIONAL ASSESSMENT
December 16, 2025

Ultimately, Staff recommends Baker Tilly as it offers a more detailed and robust project scope and stood out among all other proposals with its depth of team expertise, proven experience, and strong understanding of the Police Department’s needs, at a reasonable cost.

FISCAL REVIEW:

The organizational assessment contract has a one-time cost in an amount not to exceed $75,258, which is not currently included in the FY 2025/26 adopted budget. Staff requests an additional appropriation of $75,260 in the Patrol Division Professional Services account (100.70.70700.53003) within the General Fund. Staff requests an additional $15,000 contingency in the event the assessment exceeds the contract time limit, for a total budget amount of $90,260. Staff time will be allocated to assisting the vendor with data and personnel interviews during normal duty hours throughout the six-month assessment period.

An investment in a comprehensive organizational assessment is anticipated to generate cost savings and operational efficiencies through the implementation of Baker Tilly’s recommendations. Based on Baker Tilly’s experience with comparable municipalities, organizational assessments typically identify opportunities for cost savings and efficiency improvements that will exceed the cost of the study when implemented.

PUBLIC NOTIFICATION:

Not applicable.

ENVIRONMENTAL IMPACT REVIEW:

Not applicable.

ATTORNEY REVIEW:

The Attorney(s) for the City has reviewed the Baker Tilly quotation and service contract and concurred with the recommended action.

POLICE DEPARTMENT ORGANIZATIONAL ASSESSMENT
December 16, 2025

ALTERNATIVES:

Alternative No. 1: Approve a professional services agreement with Baker Tilly for a comprehensive organizational assessment of the Police Department in a not-to-exceed amount of $75,258, approval of a $15,000 contingency, and a budget amendment to appropriate $90,260 in the General Fund.

Alternative No.2: Do not approve a professional services agreement with Baker Tilly for a comprehensive organizational assessment of the Police Department in a not-to-exceed amount of $75,258, approval of a $15,000 contingency, and a budget amendment to appropriate $90,260 in the General Fund.

RECOMMENDATION: Staff requests City Council approval of Alternative No. 1 to approve a professional services agreement with Baker Tilly for a comprehensive organizational assessment of the Police Department in a not-to-exceed amount of $75,258, approval of a $15,000 contingency, and a budget amendment to appropriate $90,260 in the General Fund.

Prepared by: Steve DeSantis, Police Captain
Reviewed by: Rod Cox, Interim Police Chief
Fiscal review by: Ryan Smith, Finance Director
Approved by: Maggie Le, City Manager
Attachments:

1. RFP #25-014

2. RFP #25-014 Bid Results and Proposal

3. Contract – Organizational Assessment – Baker Tilly

City of Fountain Valley
Electronic submittal of Request for Proposal
RFP 25-014

ORGANIZATIONAL ASSESSMENT OF THE POLICE

DEPARTMENT
Questions Deadline:
4:00 p.m., PST, Wednesday, October 22, 2025
Proposals Due Date:
9:00 a.m., PST, Thursday, November 6, 2025
City Contact:

Amanda McCall, Mgmt. Analyst / Purchasing Officer
email: [email protected]
Phone No. (714) 593-4413
CITY OF FOUNTAIN VALLEY’S ELECTRONIC BIDDING SITE, PLANETBIDS *Read Upload Instructions*
for important information on the best time to upload proposals (Issued October 9, 2025)

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City of Fountain Valley Request for Proposal for
Police Department Assessment

SUMMARY
The City of Fountain Valley is seeking proposals for performing all work necessary and incidental to the completion of an organizational assessment of the Fountain Valley Police Department.

The successful contractor will possess knowledge of public safety operations with particular experience in California cities, smaller cities, patrol, crime prevention, emergency services, investigations, records and administration.

Proposals, prepared according to the following detailed instructions, must be received via PlanetBids no later than 9:00 a.m., Pacific Standard Time, Thursday, November 6, 2025.

The City of Fountain Valley assumes no obligations of any kind for expenses incurred by any respondent to this solicitation.

It is the City of Fountain Valley’s policy to assure nondiscrimination in any contract entered into pursuant to this advertisement. Firms will not be discriminated against on the grounds of race, color, national origin, or sex in consideration for an award as provided by Title VI of the Civil Rights Act of 1964.

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The City of Fountain Valley is seeking proposals for an organizational assessment of the Police Department. from a qualified contractor to support the Police Chief in the design, development, and execution of a plan of complete assessment to complete a public safety assessment of the Police Department to include: the organizational structure, workload, overall efficiency, information technology, and policy review.

I. ABOUT THE CITY
Background Information
The City of Fountain Valley is a general law city that has operated under the council-manager form of government since its incorporation in 1957. The City is located in Orange County, California, roughly 30 miles southeast of Los Angeles and 90 miles northwest of San Diego.

The City has an estimated population of 56,920 and covers a land area of 9.75 square miles.

Fountain Valley is a full-service city that provides a wide range of municipal services that help keep the City “A Nice Place to Live.” These services include but are not limited to: police and fire protection; water and sewer utilities; infrastructure and maintenance services; environmental protection; building and safety; land use planning and zoning; housing and community development; and recreational activities.

The mission of the Police Department is to provide the highest quality of service in a fair, impartial, and ethical manner; committed to taking a leadership role in providing for the public safety and quality of life in a manner that preserves the public trust; and demonstrate courage to protect life and property in the community. The Department’s core values include community service, respect, problem solving, performance, teamwork, and organizational growth. The Department consists of 65 sworn personnel and 29 non-sworn. The Department is organized into two Divisions: Patrol and Support Services. The total budget for the police department is 25 million dollars.

II. PROJECT DESCRIPTION
The City of Fountain Valley (hereinafter referred to as "CITY") is requesting a full organizational assessment of the Fountain Valley Police Department (FVPD). FVPD is in need of an organizational assessment to help the Department better plan for the future.

The Department is looking to find ways to maximize efficiencies with current resources and have a detailed plan regarding staffing in both sworn and non-sworn positions.

Proposals should emphasize how engagement with City Council Members, community stakeholders, city management, and employee associations will be incorporated into the scope of work.

III. GENERAL SCOPE OF WORK
A. Organizational Leadership: Examine current administrative structure.

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• Is the current workload appropriate for each leadership position? • Is the span of control for each leadership position appropriate? • Are there means to enhance or improve internal communication? B. Administration and Staffing: In depth look at our staffing levels in patrol, investigations, and support services, to include records, dispatch, and other civilian staff positions.
• Are the various entities at optimal staffing levels for a community of Fountain Valley’s size, with its call volume, and based on service expectations from the community?
• Are there operational positions held by sworn staff that could be handled in other ways?
• With current issues affecting recruitment and retention, what best practices could be implemented to maximize efficiencies and performance? • Evaluating operating hours to determine if staff is adequately being deployed or if adjustments to shift schedules might provide a more advantageous deployment of resources.

C. Patrol Services: Evaluate Patrol Services.
• Are staffing levels appropriate for call volume and proactivity? • Are there activities staff is responding to that could be handled other ways? • What tools or practices could be utilized to help with call reduction? • Are our patrol personnel distributed effectively throughout the community? • Is the deployment of patrol personnel responsive to shifting service demands? • Are there appropriate levels of field supervision and management staffing to effectively command everyday operations?
D. Investigations: Provide a review of the Investigations Bureau structure. • Does the Department have adequate staffing in the Investigations Bureau? • Is the Department utilizing investigators in a way that represents best practices?
• Are there more efficient or effective ways to supervise our investigative units? E. Data and Technical Equipment: Review data collection, retention, and usage. • Is the Department currently capturing the correct data to assist in deployment of staff and services?
• Does the Department have the ability to capture real time crime data to quickly address trouble spots, patterns, and trends?
F. Recruitment/Retention: Best practices on recruiting and retention efforts. • What innovative programs are being used elsewhere that have encouraged officer retention or added to recruitment efforts?
G. Dispatch: Examine structure, protocol, and communications. • How are calls routed and is this being done in the most efficient and effective manner?
• Does Dispatch have protocols in place that positively or negatively influence Department operations?

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• Are there modifications that could be made to policies that might provide calls for service reductions, or that would encourage alternative calls for service strategies?
H. Schedule and Beat design: In-depth look at current schedule and Beats. • Are there schedules that could help maximize staffing levels, while still ensuring appropriate supervisory oversight?
• Are there schedules that would provide better accountability to the community? • Is the current Beat layout and staffing effective?
• Are there ways to design Beats that would better patrol the community’s geographical layout?
I. Community Engagement: Examine events and meetings the Fountain Valley Police Department attends.
• Are staff participating in appropriate community engagements to develop trust and partnerships in the community?
• Are the events and/or meetings in which staff participate having an impact on crime reduction, recruitment, and trust in the community? • Are appropriate levels of the Department participating in community engagement?
J. Technology Evaluation: Examination of the Fountain Valley Police Department’s technology.
• How is the Department using technology?
• Are there gaps in the use of existing technology?
• Are there other technology platforms that could bring additional efficiencies to the Department?
• Are any of the Department’s current technologies being underutilized, or is the use of any technology contributing to any unintended issues? • Is there training that should be undertaken to take full advantage of the City’s technology options and to ensure that knowledge of programs is widespread throughout the Department and not at risk of failure due to staff transitions.

K. Organization Culture: Examination of the Fountain Valley Police Department’s organizational culture.
• Does the current culture support a ‘espirit de corps’ among Patrol and Support Services?
• Are there any practices or procedures that negatively affect overall employee morale?
• Are there events or designs that should be undertaken to increase employee satisfaction?
V. PROPOSAL REQUIREMENTS
A. General Requirements

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Inquiries/Questions concerning this request for proposal should be made before 4:00 p.m., PST, on Wednesday, October 22, 2025.

If the Proposer is in doubt as to the meaning or finds discrepancies and/or omissions from any part of the RFP and Agreement Documents, the Proposer must submit a written request for clarification via PlanetBids.

All questions regarding this project shall be submitted electronically in PlanetBids up to the Question and Answer (QA) deadline. All project correspondence will be posted in PlanetBids. It is the responsibility of the Proposers to check the website regularly for information updates, clarifications, and addenda. At the Agency’s discretion, Proposers requests for clarifications may or may not be responded to.

All revisions of the RFP by the City will be made in writing and will be posted on PlanetBids in accordance with the procurement schedule. Proposers shall electronically acknowledge receipt of all addenda at time of submittal and all addenda so issued shall become part of the RFP and the effects of all Addenda shall be considered in the proposal.

B. Submission of Proposals
Proposals must be received no later than 9:00 a.m., PST, Thursday, November 6, 2025.

Proposals shall be received in electronic format EXCLUSIVELY at the City of Fountain Valley’s electronic bidding (ebidding) site, at:
https://pbsystem.planetbids.com/portal/25002/portal-home and are due by the date, and time shown on this solicitation. See “upload instructions” document for details. Files are to be uploaded accordingly:
• Response File: Upload proposal with no cost attached. • General Attachments: If City request forms, upload under specified file as shown on PlanetBids.
• Cost File: Cost proposal is to be uploaded electronically as a separate file and not attached to the response file.
• Line Item (if required): make sure to input an amount on each item, can use the notes section to clarify your amount.

The following instructions describe the form in which proposals must be presented. Proposal documents must be prepared simply, economically, and provide a straightforward, concise response to the requirements of the RFP.

Completeness and clarity of content must be emphasized. The requirements stated do not preclude proposers from furnishing additional reports, functions, and costs as deemed appropriate.

C. Proposal Content Format
Should contain no more than twenty (20) pages, including exhibits and resumes, single-sided, single column, portrait layout, 1" side margins and 1/2" top and bottom margins, font size no less than 12 pt., and single or double spaced.

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• RFP Addenda. Proposers shall check the website for addenda prior to proposing and shall be required to electronically acknowledge receipt of all addenda at time of proposal submittal.

1. Transmittal Letter
The proposal transmittal letter shall be addressed to the Purchasing Officer for the City of Fountain Valley and shall contain the following:
• Name of individual, partnership, company, or corporation submitting proposal.
• Statement that indicates an understanding of the scope of work as presented in this specification and confirmation that all terms and conditions of the RFP are understood and acknowledged by the undersigned.
• Team organization including an organization diagram and time commitment shall be submitted showing all key team members and illustrating the relationship between the City, the manager, and key staff.
• Signature(s) of representative(s) legally authorized to bind the proposer.

2. Company Experience
• Provide a description of your company’s experience (including subconsultants’ experience) in performing similar work, addressing the elements listed above.
• Provide a final assessment report completed by consultant for another Police Department or law enforcement agency, or a sample report of a Police Department public safety assessment drafted by the consultant.

The sample assessment should include review of the organizational structure, workload, overall efficiency, information technology, and policy review. .

3. Key Personnel/Past Performance
• Identify and describe the relevant experience and qualifications of the pertinent individuals who would serve as key personnel for various City of Fountain Valley projects.
• Identify other staff members and/or sub-consultants that would contribute to the project, and their relevant experience. • Identify availability of key personnel to work on each task described in “General Scope of Work”.
• If sub-consultants are used, names of sub-consultants’ key personnel for the project, their professional experience, qualifications, and training which are applicable to this project, and the scope of services that will be provided by each sub-consultant.
• Any changes to personnel assigned to this project shall be made in writing to CITY. CITY reserves the right to reject any proposal with modified personnel.
• The office location from which the consultant(s) shall operate.

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4. Approach and Schedule
• Discuss your company’s ability to provide desired services, addressing the elements listed under “General Scope of Work”.
• Describe how your company would ensure City requests are completed in a timely manner.

5. Understanding of Project Components
• Identify objectives/tasks that you feel are key to the success of the project; this may include items not already identified in this Request for Proposal. References for protocols and methods are encouraged.

6. Quality Control
• Describe the standards and methods used by the company to assure useful quality deliverables of this nature to the client. • Describe how your firm will address concerns or deficiencies in quality control and deliverables and give a specific example.

7. References
• Provide descriptions and references for three comparable projects that your company has previously performed, with one of the references from an Orange County law enforcement agency. Include contact names, company/agency and telephone numbers for each.
• Identify key personnel listed on this proposal who have worked on the reference projects.

8. Cost / Fee (submit as a separate document, not attached to the Proposal/Response file)
Compensation for services provided shall be based upon the Contractor’s detailed fee proposal.
• Identification of all costs Consultant/Vendor will charge for performing the tasks necessary to accomplish the objectives of this RFP. The costs must break out all expenses expected to be billed to the City.

Cost proposal shall include the estimated number of project work hours by each task/requirement, and the cost of each
task/requirement. A list of hourly rates of proposed project team members shall also be included along with any other fees that may be applicable and billed. Cost is to be listed out for the term of the contract.
• Firms shall provide complete cost and billing schedules of current hourly billing rates for each specialized skill, material, and support services.
• A work program together with a breakdown of labor hours by employee billing classification together with the cost of non-labor and subcontractor services shall be included with the fee proposal. The labor breakdown shall be compiled based upon a listing of work tasks that correlates with the firm’s defined scope of work for project proposal.

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This information will be used by the City staff to evaluate and compare the reasonableness of the fee schedule and may be used in determining the total cost for the proposed work.
• The service contract will be for a period not to exceed three months from the date of contract approval.

VI. GENERAL REQUIREMENTS
A. DISCLAIMER
This RFP does not commit the City to award a contract, or to pay any costs incurred in the preparation of the proposal. The City reserves the right to extend the due date for the proposal, to accept or reject any or all proposals received as a result of this request, to negotiate with any qualified Contractor, or to cancel this RFP in part or in its entirety. The City may require the selected Contractor to participate in negotiations and to submit such technical, fee, or other revisions of their proposals as may result from Negotiations.

VII. TENTATIVE SCHEDULE OF EVENTS
The following is the Schedule of events that the City plans to follow in conducting this solicitation:

Event Tentative Date
Issuance of RFP Wednesday, October 8, 2025
Clarification Questions Due by: Wednesday, October 22, 2025 Due Date for Proposals Thursday, November 6, 2025
Interviews of Finalists, if applicable Week of November 17, 2025 Tentative Selection and City Council Award December 2025 Begin Project Thursday, January 1, 2026
VIII. PROPOSAL EVALUATION, INTERVIEWS AND AWARD PROCESS A. Evaluation Criteria
Award will be based upon a review and evaluation by a committee designated by the Purchasing Officer. Each proposal will be evaluated based on the following criteria but not limited to.

General approach and work plans to meet the requirements of the specified City objectives described in the RFP. Depth of proposer’s understanding of City’s requirements and overall quality of work plan and clarity. Understanding of compliance with all Federal, State and County health regulations.

Qualifications and experience of the project manager and other key individuals.

The contractor’s /consultant’s past performance on projects of similar size and scope.

Provide experience of work done for another Law enforcement agency within Orange County, California.

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Cost & Price. Reasonableness of rates; competitiveness with other offers received; adequacy of data in support of figures quoted.

B. Interviews
If interviews are needed. A few days’ notice will be sent via email to the proposer. An interview may not be required or needed to award a contract.

C. Evaluation Procedure
An evaluation committee will be appointed to review all proposals received for this RFP. The committee is chaired by the Purchasing Officer, comprised of City staff and may include outside personnel. The committee members will evaluate the written proposals using the evaluation criteria identified. A list of top ranked proposals, firms within a competitive range, will be developed based upon the totals of each committee members’ score for each proposal. During the evaluation period, the City may interview some or all of the proposing firms. The City has established the week of November 17, 2025 as the date(s) to conduct interviews. All prospective Proposers are asked to keep these dates available. No other interview dates will be provided, therefore, if a Proposer is unable to attend the interview on the selected date(s), its proposal may be eliminated from further discussion. The interview may consist of a short presentation by the Proposer after which the evaluation committee will ask questions related to the firm’s proposal and qualifications. At the conclusion of this interview process, the evaluation committee will provide a recommendation for award and the proposer being recommended will receive a notice of intent to award pending successful negotiations and contract preparation. Upon successful completion of this process, a recommendation will be made to the City Council, based on the contract, for their review and consent and unsuccessful firms will be notified.

D. Notification of Awards
The successful proposer will be required to execute a Contract agreement, See “Draft Contract”, with the City, which is subject to formal approval by the Fountain Valley City Council. The proposer will also be required to purchase a City Business License annually during the duration of the contract.

City of Fountain Valley
Organizational Assessment of the Police Department (25.014), bidding on 11/06/2025 9:00 AM (PST)

Printed 12/01/2025
PlanetBids

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AGREEMENT FOR CONSULTANT SERVICES
CON –
Police Department Assessment
This AGREEMENT is made and effective as of the EFFECTIVE DATE, by and between the City of Fountain Valley, a municipal corporation ("CITY") and Baker Tilly Advisory Group, LP ("CONSULTANT"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This AGREEMENT shall commence on January 5, 2026 (“EFFECTIVE DATE”) and remain and continue in effect until all tasks described herein are completed but in no event later than August 7, 2026 , unless sooner terminated or extended pursuant to the provisions of this AGREEMENT. Notwithstanding this limit on term, some duties and obligations may survive the termination, lapse, or completion of this AGREEMENT.

2. SERVICES
CONSULTANT shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. CONSULTANT shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.

3. NOTICE TO PROCEED
CONSULTANT shall not perform any work or be entitled to any compensation under this AGREEMENT until a written Notice to Proceed is issued by CITY. The Notice to Proceed shall not issue unless and until CONSULTANT submits proof, satisfactory to CITY, of its procurement of appropriate insurance required by this AGREEMENT. The failure of CONSULTANT to submit proof of appropriate insurance within 10 days of the EFFECTIVE DATE is a material breach and shall constitute cause for immediate termination of this AGREEMENT by CITY.

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

5. CITY MANAGEMENT
The Chief of Police, or their designee, shall represent CITY in all matters pertaining to the administration of this AGREEMENT, including review and approval of all products

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submitted by CONSULTANT, but not including the authority to enlarge the tasks to be performed or change the compensation due to CONSULTANT. The City Manager shall be authorized to act on CITY’S behalf and to execute all necessary documents that enlarge the tasks to be performed or change CONSULTANT's compensation, subject to Section 6 hereof.

6. PAYMENT
(a) CITY agrees to pay CONSULTANT in accordance with the payment rates, terms, and schedule of payment set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full. This amount shall not exceed Seventy-Five Thousand Two Hundred and Fifty-Eight Dollars ($75,258.00) (“TOTAL CONTRACT SUM”) for the total term of this AGREEMENT unless additional payment is approved as provided in this AGREEMENT.
(b) CONSULTANT shall not be compensated for any services rendered in connection with its performance of this AGREEMENT that are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. This written authorization requirement cannot be waived.

CONSULTANT shall be compensated for any additional services in the amounts and in the manner as agreed to by the City Manager and CONSULTANT at the time CITY’s written authorization is given to CONSULTANT for the performance of said additional services. The City Manager’s authority to approve additional compensation is subject to Fountain Valley Municipal Code section 2.36.110. Approval of additional compensation that exceeds the City Manager’s authority as specified in Fountain Valley Municipal Code section 2.36.110 must be obtained from the City Council. (c) CONSULTANT shall submit reasonably detailed invoices monthly for actual services performed and, as applicable, equipment and materials acquired.

Invoices shall be submitted on or about the first business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the CITY disputes ant of CONSULTANT’s fees it shall give written notice to CONSULTANT within 30 days of receipt of an invoice of any disputed fess set forth on the invoice.

7. PUBLIC WORK
Notice is provided pursuant to Labor Code Section 1781 that all or a portion of the work contemplated in this AGREEMENT may constitute a “public work” as defined in Chapter 1, Part 7, and Division 2 of the Labor Code, to which Section 1771 applies.

If all or a portion of the work contemplated under this AGREEMENT constitutes “public work,” then CONSULTANT shall pay prevailing wages, unless exempt, on those portions of the work which require payment of prevailing wages under the prevailing wage laws (Labor Code, §§ 1720 et seq.), and shall comply with the following:
(a) Prevailing Wage Rates. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages can be found at

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http://www.dir.ca.gov/OPRL/PWD/index.htm and are on file at City Hall, which shall be made available to any interested party upon request. CONSULTANT shall post a copy of the determination of the director of the prevailing rate of per diem wages at each job site. Said per diem wages are deemed to include employer payments for health and welfare, pension, vacation and travel time, and subsistence pay, all in accordance with Section 1773.1 of the Labor Code.
(b) Payroll Records. The provisions of Section 1776 of the Labor Code regarding the preparation, maintenance, and filing of payroll records are applicable to this AGREEMENT. CONSULTANT and each subconsultant shall keep accurate payroll records showing the name, address, social security number, work classification, straight time, and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by them in connection with the public work. Certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or contain the same information. CONSULTANT’S AND ANY SUBCONSULTANT’S PAYROLL RECORDS SHALL BE SUBMITTED TO CITY ON A WEEKLY BASIS. CONSULTANT SHALL BE RESPONSIBLE FOR SUBMITTAL OF SUBCONSULTANT’S PAYROLL RECORDS. Additionally, CONSULTANT or subconsultant has ten (10) days in which to comply subsequent to receipt of a written notice requesting the records enumerated in Section 1776, subdivision (a), of the Labor Code. In the event that CONSULTANT or subconsultant fails to comply within the ten (10) day period, they shall, as a penalty to CITY, forfeit One Hundred Dollars ($100.00) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. CITY may deduct this penalty from any monies due or that may become due CONSULTANT under this AGREEMENT.
(c) Penalty. CONSULTANT and any subconsultant under CONSULTANT shall, as a penalty to CITY, forfeit not more than Two Hundred Dollars ($200.00) for each calendar day, or portion thereof, for each worker paid (either by CONSULTANT or any subconsultant under CONSULTANT) less than the prevailing rate set forth herein on the work provided for in this AGREEMENT. CITY may deduct the penalty from any monies due or that may become due CONSULTANT under this AGREEMENT. The difference between the prevailing wage rates and the amount paid to each worker for each calendar day, or portion thereof, for which each worker was paid less than the prevailing wage rate shall also be paid to each worker by CONSULTANT or subconsultant, in accordance with Section 1775 of the Labor Code of the State of California.
(d) Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring the use of apprentices in certain ratios to journeymen are hereby imposed upon CONSULTANT.
(e) Legal Day’s Work. In the performance of this AGREEMENT, not more than eight (8) hours shall constitute a day’s work, and CONSULTANT shall not require more than eight (8) hours of labor in a day from any person employed by them hereunder except as provided in Labor Code Section 1815. CONSULTANT shall conform to