Fountain Valley City Council
April 7, 2026

cause under this subsection unless:
(1) The County has given prior written notice to the City stating that a specified failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the City and which will, in its opinion, give the County right to terminate this Agreement for cause under this subsection unless such breach is corrected within a reasonable period of time, and (2) The City has neither challenged in an appropriate forum (in accordance with Section 5.5) the County’s conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Agreement nor corrected or diligently taken steps to correct such breach within a reasonable period of time not more than ninety (90) days from the date of the notice given pursuant to clause (1) of this subsection (but if the City shall have diligently taken steps to correct such breach within such reasonable period of time, the same shall not constitute a breach giving rise to the right of termination for as long as the City is continuing to take such steps to correct such breach).

SECTION 5.4 NO WAIVERS. No action of the County or the City pursuant to this Agreement (including, but not limited to, any investigation or payment), and no failure to act, shall constitute a waiver by either Party of the other Party’s compliance with any term or provision of this Agreement. No course of dealing or delay by the County or the City in exercising any right, power or remedy under this Agreementshall operate as a waiver thereof or otherwise prejudice such Party’s rights, powers and remedies. No single or partial exercise of (or failure to exercise) any right, power or remedy of the County or the City under this Agreement shall preclude any other or further exercise thereof of the exercise of any other right, power or remedy.

ARTICLE VI
TERM
SECTION 6.1 EFFECTIVE DATE AND TERM.
(A) Initial Term. This Agreement shall become effective, shall be in full force and effect and shall be legally binding upon the City and the County from the Contract Date and shall continue in full force and effect until June 30, 2036, unless earlier terminated in accordance with its terms, in which event the Term shall be deemed to have expired as of the date of such termination.
(B) Option to Renew. This Agreement shall be subject to renewal by mutual agreement of the Parties, on or before June 30, 2036 for an additional term of ten (10) years (the “Renewal Term”) on the same terms and conditions as are applicable during the Initial Term hereof or on amended terms as may be mutually agreed to by the Parties. The City shall give the County written notice of its election to renew this Agreement on or before June 30, 2035. If the parties do not execute a renewal of this Agreement prior to June 30, 2036 it shall expire. (C) Contract Rate During Renewal Term. In connection with the parties’ right to renew this Agreement for an additional ten-year term pursuant to Section 6.1(C), the parties shall, on or before January 31, 2036 negotiate an applicable change in the Contract Rate for such renewal term. In determining any revisions to the Contract Rate to be applicable during any renewal period, in addition to the circumstances described in Section 4.2(A), the parties may take into consideration the following parameters, including but not limited to:
(i) actual cost of operations;
(ii) population growth;
(iii) increase or decrease in available tonnage;
(iv) economic and disposal market conditions in the Southern California region; (v) new regulatory requirements;
(vi) Changes in Law;

(vii) changes in transportation and technology;
(viii) closure and expansion of nearby landfills;
(ix) capacity of the Disposal System;
(x) provision of new and/or expanded services; and
(xi) available reserves which are in excess of the amount reasonably required as reserves.
(D) Survival; Accrued Rights. The rights and obligations of the parties hereto pursuant to Sections 3.1(E)(2), 5.1, 5.3, 7.2, 7.3, 7.6, 7.7, 7.8, and 7.9 hereof shall survive the termination or expiration of this Agreement, and no such termination or expiration shall limit or otherwise affect the respective rights and obligations of the parties hereto accrued prior to the date of such termination or expiration. At the end of the Term of this Agreement, all other obligations of the parties shall terminate.

SECTION 6.2 COMMENCEMENT DATE.
(A) Obligations of the Parties Prior to the Commencement Date. The Parties acknowledge that the Agreements may be executed and delivered on different dates and that, except as provided in thissubsection, neither the County nor the City shall be obligated to perform its obligations hereunder until the Participation Threshold provided herein has been met and the other conditions to the occurrence of the Commencement Date have occurred.

Prior to the Commencement Date, each Party hereto shall at its own expense exercise good faith and due diligence and take all steps within its reasonable control in seeking to satisfy the conditions to the Commencement Date set forth herein as soon as reasonably practicable. The County and the City, each at its own expense, shall cooperate fully with each other and the other Participating Cities in connection with the foregoing undertaking. Until the Commencement Date occurs, the Original WDAs shall remain in full force and effect until they expire or are terminated. (B) Condition to the Commencement Date. The Commencement Date for the Agreement shall be the date on which Participating Cities reach the Participation Threshold. Unincorporated County is assumed to be a Participating City for the purposes of determining the Commencement Date in accordance with this Section 6.2(b) and Appendix 1 of this Agreement.
(C) Satisfaction of Condition and Commencement Date. Upon the satisfaction or waiver of the condition to the Commencement Date, the County shall give written notice thereof to the Cities which have theretofore executed Agreements. The parties shall thereupon hold a formal closing acknowledging the satisfaction or waiver of the condition to the Commencement Date, certifying that the Commencement Date has occurred and designating the Participating Cities. Copies of all of the documents or instruments constituting or evidencing satisfaction of the Commencement Date conditions shall be furnished to each party prior to or on the Commencement Date. (D) Newly Incorporated Cities. Any city within Orange County which becomes incorporated after the Commencement Date shall upon request be offered the opportunity by the County to become a Participating City on substantially the same terms and conditions as this Agreement. (E) Failure of Condition. If by June 30, 2026, or such later date as the County may agree, the condition to the Commencement Date specified in this Section is not satisfied, either party hereto may, by notice in writing to the other party, terminate this Agreement. Neither party shall be liable to the other for the termination of this Agreement pursuant to this subsection, and each of the parties shall bear its respective costs and expenses incurred in seeking to satisfy the condition to the Commencement Date.

ARTICLE VII

GENERAL PROVISIONS
SECTION 7.1 OPERATION AND MAINTENANCE OF THE WASTE INFRASTRUCTURE SYSTEM.

The County, at its cost and expense through the County Solid Waste Enterprise Fund, shall at all times operate, or caused to be operated, the Waste Infrastructure System in accordance with Applicable Law and the operating rules and regulations of the Department and other applicable regulatory agencies.

SECTION 7.2 UNCONTROLLABLE CIRCUMSTANCES GENERALLY.
(A) Performance Excused. Except as otherwise specifically provided in this Agreement, neither the County nor the City shall be liable to the other for any failure or delay in the performance of any obligation under this Agreement (other than any payment at the time due and owing) to the extent such failure or delay is due to the occurrence of an Uncontrollable Circumstance.
(B) Notice, Mitigation. The Party experiencing an Uncontrollable Circumstance shall notify the other Party by telecommunication or telephone and in writing, on or promptly after the date the Party experiencing such Uncontrollable Circumstance first knew of the commencement thereof, followed within fifteen (15) days by a written description of (1) the Uncontrollable Circumstance and the cause thereof (to the extent known), (2) the date the Uncontrollable Circumstance began and the cause thereof, its estimated duration, the estimated time during which the performance of such Party’s obligations hereunder will be delayed, (3) the estimated amount, if any, by which the Contract Rate may need to be adjusted as a result of such Uncontrollable Circumstance, (4) its estimated impact on the other obligations of such Party under this Agreement and (5) potential mitigating actions which might be taken by the County or City and any areas where costs might be reduced and the approximate amount of such cost reductions. Each Party shall provide prompt written notice of the cessation of such Uncontrollable Circumstance. Whenever such act, event or condition shall occur, the Party claiming to be adversely affected thereby shall, as promptly as reasonably possible, use its best efforts to eliminate the cause therefor, reduce costs and resume performance under this Agreement. In addition, with respect to Changes in Law, the County shall diligently contest any such changes the imposition of which would have a material adverse impact on the Waste Infrastructure System. While the delay continues, the County or City shall give notice to the other Party, before the first day of each succeeding month, updating the information previously submitted.
(C) Impact on Contract Rate. If and to the extent that Uncontrollable Circumstances interfere with, delay or increase the cost to the County of meeting its obligations hereunder and providing Waste Infrastructure Services to the Participating Cities in accordance herewith, the County shall be entitled to an increase in the Contract Rate as provided in Section 4.2 herein or an extension in the schedule for performance equal to the amount of the increased cost or the time lost as a result thereof. The proceeds of any insurance available to meet any such increased cost shall be applied to such purpose prior to any determination of cost increases payable under this subsection. Any cost reductions achieved through the mitigating measures undertaken by the County pursuant to subsection 7.2(B) hereof upon the occurrence of an Uncontrollable Circumstance shall be reflected in a reduction of the amount by which the Contract Rate would have otherwise been increased or shall serve to reduce the Contract Rate to reflect such mitigation measures, as applicable.

SECTION 7.3 INDEMNIFICATION. To the extent permitted by law, the County agrees that, it will protect, indemnify, defend (with counsel selected by County) and hold harmless the City from and against all Loss-andExpense arising from the City’s activity as an “arranger” (for purposes of and as such term is defined under CERCLA or comparable State statutes) of municipal solid waste disposal pursuant to this Agreement. In the event the City shall determine for any reason, other than a disabling conflict of interest, that it wishes to be defended by legal counsel other than the legal counsel provided by the County, the cost of providing such legal counsel shall be the City’s sole responsibility. Any costs incurred by the County pursuant to this Section shall be considered an Uncontrollable Circumstance cost and the County shall be entitled to adjust the Contract Rate as provided in subsection 4.2(A) herein.

The County shall not, however, be required to indemnify or defend the City from and against all Loss-and-Expense arising from any willful, knowing, illegal or negligent disposal of hazardous waste (other than incidental amounts of Household Hazardous Waste commonly found in municipal solid waste and permitted to be disposed in Class III landfills under RCRA) which violates the County’s landfill permits or Applicable Law. The parties agree that this provision constitutes an indemnity under CERCLA (to the extent of the specific provisions of this Section). The parties acknowledge that this subsection is not intended to and does not create any obligation on the part of the County to provide any indemnification or defense to any Franchise Hauler, whether franchised or not, or any Independent Hauler or Transfer Station, under any circumstances. The City acknowledges the County’s legitimate interest in actively participating in any defense, litigation or settlement, whether the County or the City provides legal counsel and shall, as a condition to County’s provision of this indemnity, coordinate and cooperate fully with the County in the defense of any claims to which this Section applies.

SECTION 7.4 RELATIONSHIP OF THE PARTIES. Neither party to this Agreement shall have any responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the

other party hereto, whether accrued, absolute, contingent or otherwise, or whether due or to become due. The County is an independent contractor of the City and nothing in this Agreement shall be deemed to constitute either party a partner, agent or legal representative of the other party or to create any fiduciary relationship between the parties.

SECTION 7.5 LIMITED RECOURSE.
(A) To the City. No recourse shall be had to the general funds or general credit of the City for the payment of any amount due the County hereunder, or the performance of any obligation incurred hereunder, including any Loss-and-Expense of any nature arising from the performance or non-performance of the City’s obligations hereunder. If the City maintains a City Solid Waste Enterprise Fund with at least one year’s anticipated costs for disposal and processing of City Acceptable Waste the sole recourse of the County for all such amounts shall be to the funds held in any such City Solid Waste Enterprise Fund. All amounts held in any City Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amounts shall constitute property of the County. The City shall make adequate provision in the administration of any City Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due hereunder. (B) To the County. No recourse shall be had to the general funds or general credit of the County for the payment of any amount due the City hereunder, or the performance of any obligation incurred hereunder, including any Loss-and-Expense of any nature arising from the performance or non-performance of the County’s obligations hereunder. The sole recourse of the City for all such amounts shall be to the funds held in the County Solid Waste Enterprise Fund in accordance with the terms of this Agreement. All amounts held in the County Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amountsshall constitute property of the City. The County shall make adequate provision in the administration of the County Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due hereunder.

SECTION 7.6 PRE-EXISTING RIGHTS AND LIABILITIES. Nothing in this Agreement is intended to affect, release, waive or modify any rights, obligations or liabilities which any Party hereto may have to or against the other Party as of the Contract Date relating to the receipt of Acceptable Waste in the Waste Infrastructure System or any other related matter.

SECTION 7.7 NO VESTED RIGHTS. The City shall not acquire any vested property, license or other rights in the Waste Infrastructure System by reason of this Agreement.

SECTION 7.8 LIABILITY FOR COLLECTION, TRANSPORTATION AND PROCESSING. Any liability incurred by the City as a result of collecting, transporting or processing of Acceptable Waste, or as a result of causing, franchising, permitting, licensing, authorizing or arranging any of the foregoing, shall be the sole liability of City, except as expressly otherwise provided herein.

SECTION 7.9 NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no event shall either Party hereto be liable to the other or obligated in any manner to pay to the other any special, incidental, consequential, punitive or similar damages based upon claims arising out of or in connection with the performance or non- performance of its obligations or otherwise under this Agreement, or the material inaccuracy of any representation made in this Agreement, whether such claims are based upon contract, tort, negligence, warranty or other legal theory.

SECTION 7.10 AMENDMENTS. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by written agreement duly authorized and executed by both Parties.

SECTION 7.11 NOTICE OF LITIGATION. Each Party shall deliver written notice to the other of any Legal Proceeding to which it is a party and which questions the validity or enforceability of this Agreement executed by the City or the County or any Legal Entitlement issued in connection herewith.

SECTION 7.12 FURTHER ASSURANCES. At any and all times the City and the County so far as may be authorized by law shall pass, make, do, execute, acknowledge and deliver any and every such further resolutions, acts, deeds, conveyances, instruments, assignments, transfers and assurances as may be necessary or reasonably requested by the other in order to give full effect to this Agreement.

SECTION 7.13 ASSIGNMENT OF AGREEMENT.

(A) Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either Party hereto without the prior written consent of the other Party, which may be withheld in the other Party’s sole discretion. Notwithstanding the foregoing, either Party may assign this Agreement to another public entity, subject to the reasonable consent of the other party. In such circumstances the Party not requesting the assignment shall have the right to demand assurances of the financial, technical and legal ability of the proposed assignee to undertake the responsibilities and obligations of the assigning Party. (B) Sale. The County shall not enter into any agreement for the sale of the Waste Infrastructure System which provides for an effective date for such sale prior to the termination of this Agreement.

SECTION 7.14 INTEREST ON OVERDUE OBLIGATIONS. Except as otherwise provided herein, all amounts due hereunder, whether as damages, credits, revenue or reimbursements, that are not paid when due shall bear interest at the Overdue Rate on the amount outstanding from time to time, on the basis of a 365-day year, counting the actual number of days elapsed, and all such interest accrued at any time shall, to the extent permitted by Applicable Law, be deemed added to the amount due, as accrued.

SECTION 7.15 BINDING EFFECT. This Agreement shall bind and inure to the benefit of the Parties hereto and any successor or assignee acquiring an interest hereunder consistent with the provisions of Section 7.13 hereof.

SECTION 7.16 NOTICES. Any notice or communication required or permitted hereunder shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective Parties set forth on the cover page of this Agreement. Changes in the respective addresses to which such notices may be directed may be made from time to time by any Party by notice to the other Party.

Section 7.17 ATTORNEYS FEES. In any action or proceeding to enforce or interpret any provision of this Agreement, each Party shall bear their own attorney’s fees, costs and expenses.

Signature Page to Follow

IN WITNESS WHEREOF, COUNTY and CITY have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written.

COUNTY OF ORANGE
Date By
Director, OC Waste & Recycling
APPROVED AS TO FORM:

COUNTY COUNSEL

ORANGE COUNTY, CALIFORNIA
By
Date
Date By
Mayor, Jim Cunneen
City Representative
City of Fountain Valley
Date By
City Representative
City of Fountain Valley
APPROVED AS TO FORM:

By
Harper & Burns LLP
Attorneys for the City
Date March 26, 2026

APPENDIX 1

ESTIMATED ANNUAL TONNAGE

APPENDIX 1

PERCENTAGE OF COUNTY ACCEPTABLE WASTE ATTRIBUTABLE TO PARTICIPATING CITIES FOR PURPOSE OF SECTIONS 3.6(F) AND 6.2(b)
Jurisdiction Percentage of County
Acceptable Waste
Aliso Viejo 0.82%
Anaheim 14.78%
Brea 2.62%
Buena Park 1.02%
Costa Mesa/Costa Mesa Sanitary District (2) 3.41%
Cypress 0.85%
Dana Point 1.33%
Fountain Valley 1.63%
Fullerton 4.08%
Garden Grove Sanitary District (Garden Grove) 4.74%
Huntington Beach 5.91%
Irvine 9.64%
La Habra 1.72%
La Palma 1.27%
Laguna Beach 1.18%
Laguna Hills 0.89%
Laguna Niguel 1.44%
Laguna Woods 0.28%
Lake Forest 2.14%
Los Alamitos 0.33%
Midway City Sanitary District (Westminster) 2.47%
Mission Viejo 2.33%
Newport Beach 3.58%
Orange 5.25%
Placentia 1.39%
Rancho Santa Margarita 1.03%
San Clemente 2.43%
San Juan Capistrano 2.93%
Santa Ana 9.45%
Seal Beach 0.52%
Stanton 1.47%
Tustin 2.04%
Unincorporated Orange County (1) 3.19%
Villa Park 0.16%
Yorba Linda 1.68%
Total 100%
(1) Unincorporated County Area is assumed to be a Participating City for the purposes of determining the Commencement Date in accordance with Section 6.2(b) of this Agreement. For the distribution of Net Import Revenues, the County of Orange shall receive 50% of any Net Import Revenues received in accordance with Section 3.6(F)(2)(i) of this Agreement. The County of Orange shall also receive the Unincorporated Area distribution set forth in this Appendix 1, as periodically modified in accordance with Section 3.6(F)(2)(ii) of this Agreement. (2) The City of Costa Mesa and the Costa Mesa Sanitation District have separate WISE Agreements. Costa Mesa Sanitation District Acceptable Waste tonnage is based on City of Costa Mesa Acceptable Wate tonnage and Importation Revenue is calculated based on City of Costa Mesa Acceptable Waste tonnage delivered to the Waste Infrastructure System.

(3) NOTE: A participating City will only be included for purposes of determining the Commencement Date upon (i) execution of a WISE Agreement by that Participating City and (ii) execution of a Hauler Acknowledgement(s) by the Franchise Hauler(s) operating within such Participating City.

APPENDIX 2

CUMULATIVE TONNAGE

APPENDIX 2
Cumulative County Acceptable Waste Tonnage Target to be Used for Purposes of Section 4.2(B)
Fiscal Year
(Ending June 30)
County Acceptable Waste
Tonnage
Cumulative County Acceptable
Waste Tonnage
2026 3,343,282 3,343,282
2027 3,278,595 6,621,877
2028 3,029,924 9,651,801
2029 2,982,454 12,634,255
2030 2,411,983 15,046,238
2031 2,261,201 17,307,439
2032 2,225,152 19,532,591
2033 2,181,838 21,714,429
2034 2,187,041 23,901,470
2035 2,219,362 26,120,832
2036 2,224,792 28,345,624

APPENDIX 3

CUMULATIVE CAPITAL COSTS

APPENDIX 3

CUMULATIVE CAPITAL COSTS
to be Used
for Purposes of Section 4.2(A)vi
Fiscal Year
(Ending June 30) Annual Capital Costs Cumulative Capital Costs 2026 $72,599,664 $72,599,664
2027 $79,950,000 $152,549,664
2028 $155,135,000 $307,684,664
2029 $136,185,000 $443,869,664
2030 $41,171,500 $485,041,164
2031 $16,745,000 $501,786,164
2032 $18,165,000 $519,951,164
2033 $36,605,000 $556,556,164
2034 $30,100,000 $586,656,164
2035 $1,510,000 $588,166,164
2036 $25,000,000 $613,166,164

APPENDIX 4

FRANCHISE HAULER ACKNOWLEDGMENT

FRANCHISE HAULER ACKNOWLEDGMENT
THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of_______________(the “Acknowledgment”), and between the __________ (the “City”) and ______________ (the “Franchise Hauler”).

WITNESSETH
WHEREAS, the City and the Franchise Hauler have heretofore entered into an agreement entitled ______________ dated as of_____________ (the “Franchise”); and WHEREAS, the City has issued to the Franchise Hauler a permit, license, approval or other authorization the “Authorization”) which allows the Franchise Hauler to provide solid waste collection services within the City; and WHEREAS, the Franchise [SUBSTITUTE “AUTHORIZATION” THROUGHOUT IF APPLICABLE]] provides for the collection and disposal of certain municipal solid waste as described therein (“Franchise Waste”) generated within the City; and
WHEREAS, the County of Orange (the “County”) owns, manages and operates a Waste Infrastructure System that is permitted to accept or process Acceptable Waste for disposal or diversion; and WHEREAS, the City and the County have heretofore entered into a Waste Infrastructure System Enterprise Agreement (the “WISE Agreement”), dated as of______________; and WHEREAS, the WISE Agreement details responsibilities for disposal of municipal solid waste and may include processing of identified Organic Waste for diversion, generated within the boundaries of the City, and determine that the execution of the WISE Agreement will serve the public health, safety and welfare of the residents of the City and County, by maintaining public ownership and stewardship over the Waste Infrastructure System and providing disposal rate stability, predictable and reliable long-term disposal service, enhanced organics processing to assist the City in meeting its organics diversion requirements, and the continuation of sound environmental management; and WHEREAS, under the WISE Agreement, the County has agreed to provide long-term disposal of all municipal solid waste generated within the City and may also provide for Organic Waste processing under an OSA and the City has agreed to exercise all legal, and contractual power which it possesses from time to time to deliver or cause the delivery of such waste to the Waste Infrastructure System; and WHEREAS, the provisions of the WISE Agreement guarantee capacity for the long term disposal and processing of waste at specified rates generated in the City provide significant benefits to the Franchise Hauler; WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise Hauler explicitly acknowledges the aforementioned benefits to the City, the County and the Franchise Hauler in providing for the disposal of all Franchise Waste to the Waste Infrastructure System; and WHEREAS, the City and the Franchise Hauler desire to enter into this Acknowledgment to assure that the City and the Franchise Hauler will be entitled to the benefits of the WISE Agreement and to assure conformity with the waste delivery obligations which have been agreed to by the City under the WISE Agreement through the delivery of waste by the Franchise Hauler to the Waste Infrastructure System; and WHEREAS, the Franchise Hauler’s agreement to deliver Franchise Waste to the Disposal System under this Acknowledgment is given in consideration of the Franchise Hauler’s right to receive the Contract Rate for such disposal and processing as provided in the WISE Agreement.

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1. Capitalized terms used and not otherwise defined herein are used as defined in the WISE Agreement.

2. The Franchise Hauler hereby waives any right which it may possess under applicable law to contest

on any ground, constitutional, statutory, case law, administrative or otherwise, (a) the right, power or authority of the County or the City to enter into or perform their respective obligations under the WISE Agreement, (b) the enforceability against the County or the City of the WISE Agreement, or (c) the right, power or authority of the City to deliver or cause the delivery of all Controllable Waste to the Disposal System in accordance with this Acknowledgment.

3. The City and the Franchise Hauler each hereby represent that this Acknowledgment has been duly authorized by all necessary action of their respective governing bodies.

4. The Franchise Hauler shall deliver or cause to be delivered all Controllable Waste (including all Residue from the processing by any means, wherever conducted, of Controllable Waste), to the Designated Facility in the Waste Infrastructure System/Disposal System, and shall otherwise assist the City in complying with its obligations under the Waste Disposal Covenant in Section 3.1 of the WISE Agreement.

5. Unless expressly authorized by the Department, the Franchise Hauler shall only haul Controllable Waste to the Designated Facility.

6. The Franchise Hauler shall not haul Controllable Waste to any materials recovery facility, composting facility, intermediate processing facility, recycling center, transfer station or other waste handling or management facility unless the contract or other agreement or arrangement between the Franchise Hauler and the operator of such facility is sufficient in the opinion of the County to assure that the Residue from such facility constituting City Acceptable Waste (or Tonnage equivalencies) and the City Acceptable Waste transferred by such facility shall be delivered to the Disposal System in compliance with the Waste Disposal Covenant.

7. The Franchise Hauler shall pay the Contract Rate imposed by the County for the disposal of all Controllable Waste, which rate shall be subject to potential adjustment necessary to reflect the circumstances set forth in the Agreement.

8. Nothing in this Acknowledgment is intended to restrict any right or responsibility explicitly given the Franchise Hauler in any City Franchise Agreement to recycle City Acceptable Waste, except as provided in paragraph 5 above with respect to Residue from any such recycling operations.

9. The obligations of the Franchise Hauler under this Acknowledgment shall apply notwithstanding any provision of the Franchise which may conflict herewith.

10. This Acknowledgment may be enforced by the City by any available legal means. In any enforcement action by the City, the burden of proof shall be on the Franchise Hauler to demonstrate compliance herewith.

11. This Acknowledgment shall be in full force and effect and shall be legally binding upon the City and Franchise Hauler from the date hereof and shall continue in full force and effect until the earlier of (i) the end of the term of the Franchise or (ii) the end of the Term of the WISE Agreement.

12. The City and Franchise Hauler agree that the County shall be an express third-party beneficiary of this Acknowledgment, and shall be entitled to independently enforce the obligations of the Franchise Hauler hereunder.

There shall be no additional third party beneficiaries under this Acknowledgement.

13. The Franchise Hauler agrees to assist the County in verifying tonnage collected by the Franchise Hauler and providing information required by the County. The Franchise Hauler will provide upon request refuse tonnage collected within the County, and outside the County (if relevant to confirming tonnage origination), separated by jurisdiction, by load type (residential, commercial, roll-off box, etc.), and by facility to which it was delivered (specify which landfill or transfer station). Hauler will provide customer service levels and route lists. The Franchise Hauler will cooperate with County audits to verify reported origin of tonnage by making records and personnel available to the County and/or its auditors.

IN WITNESS WHEREOF, the parties have caused this Acknowledgment to be executed by their duly authorized officers or representatives as of day of , ______.

Signature:

Printed Name:

Title:

APPROVED AS TO FORM:

By
City Attorney
Date
(Franchise Hauler)
Signature:

Printed Name:

Title:

Appendix 5

ORGANIC SERVICES AGREEMENT

Appendix 5

ORGANIC SERVICES AGREEMENT
Between

THE COUNTY OF ORANGE, CALIFORNIA
and
__________________________
Dated , 2025
County Authorization Date: City Authorization Date:

County Notice Address:

Director
OC Waste & Recycling
601 N. Ross Street 5th Floor
Santa Ana, CA 92701
City Notice Address:

ORGANIC SERVICES AGREEMENT
THIS ORGANIC SERVICES AGREEMENT (“Organics Agreement” or “OSA”) is made and dated as of the date indicated on the cover page hereof between the County of Orange, a political subdivision of the State of California (the “County”), and the City designated on the cover page of this Agreement (the “City”). County and City may hereinafter be referred to singularly as “Party” or collectively as “Parties.”.

RECITALS
The County owns, manages and operates a Waste Infrastructure System to manage municipal and solid waste generated within the County of Orange or imported from outside the County pursuant to contractual agreements. The Waste Infrastructure System collectively includes active Class III sanitary landfills (“County Landfills”), resource recovery, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County.

County Landfills are used for the management of municipal solid waste pursuant to legislation including but not limited to the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code) (the “Act”) and the Short-lived Climate Pollutants Reduction Act (“SB 1383”). County Landfills are also subject to other State and federal regulations designed to ensure that landfill operations minimize the impacts to public health and safety and the environment.

Pursuant to Resolution, the County established the Waste Management Enterprise Fund pursuant to Government Code §25261 to ensure that all costs associated with the operation and management of the Waste Infrastructure System are financed by charges imposed for services provided by the Department and are not funded by tax revenue or the County General Fund.

The City, in the exercise of its police power, its powers under the Act, and other Applicable Law, has entered into a franchise or other agreement with or issued permits or licenses to one or more private haulers for the collection, recycling, diversion and disposal of municipal solid waste generated within the City.

A significant portion of municipal solid waste generated within the City historically has been and currently is delivered by such hauler or haulers to the County for disposal in the Disposal System.

Since 1997, the City and the County have provided for the management of municipal solid waste through Waste Disposal Agreements (“WDAs”), wherein the County agreed to provide disposal capacity for waste generated in the City, and the City agreed to deliver or cause the delivery of waste generated in the City to the Disposal System, as more specifically set forth in, and subject to the terms and conditions of the WDAs.

Starting in approximately 2014, the Legislature of the State of California passed several pieces of legislation (“Organics Legislation”) that require significant reductions in the disposal of Organic Waste. The purpose of the Organics Legislation is to mandate organics recycling and curtail the impacts of climate change by reducing greenhouse gas emissions such as methane. In this regard, the decomposition of organic material in the State’s landfills was identified as a significant source of methane that could be reduced.

Prior to the passage of Organics Legislation, Processed Green Material (“PGM”) could be utilized as Alternative Daily Cover (“ADC”) for landfill operations and qualified for diversion credit. However, passage of Assembly Bill 1594 resulted in PGM used as ADC no longer being eligible for diversion credit starting on January 1, 2020.

In addition to the loss of diversion eligibility for PGM used as ADC, SB 1383 requires a 50% reduction in the disposal of Organic Waste by January 1, 2020 and a 75% reduction of Organic Waste by January 1, 2025. In addition, the law requires 20% of edible food waste be recovered by 2025.

On April 23, 2019, the Orange County Board of Supervisors passed Resolution 19-031 to respond to the State’s increasing landfill diversion requirements and identified the need for additional organic processing infrastructure in the County and directed the Department to develop additional organics recycling infrastructure to support the region in meeting State organic recycling mandates. (See Attachment 4)

To respond to Organics Legislation requirements, the County has developed an Organics Infrastructure that is comprised of organic processing facilities to receive and process Organic Waste to support the State’s Organic Legislation goals, promote local recycling, assist local jurisdictions in meeting their organic diversion requirements and correspondingly conserve capacity in the Disposal System.

In their effort to continue the concepts and purposes outlined in the WDAs and respond to Organics Legislation, the City and the County desire to enter into this Organics Agreement, on the terms and conditions set forth herein.

With the exception of the terms and organic specific provisions found in this Organics Agreement, the Parties intend that the provisions of the currently operative WDA and the replacement WISE Agreement that is being negotiated between the County and City are anticipated to become operative on July 1, 2026, be applied to this OSA.

The City has determined that the execution of this Organics Agreement by the City will serve the public health, safety and welfare of the City by providing enhanced organics processing to assist in the City in meeting its Organics Legislation diversion requirements, and the continuation of sound environmental management.

The County has determined that the execution by the County of this Organics Agreement will serve the public health, safety and welfare by providing a stable, predictable and reliable supply of organic material and the resulting service payment revenue to the Organics Infrastructure, thereby enabling the County to plan, manage, operate and finance improvements to the Organics Infrastructure System on a prudent and sound long term, businesslike basis consistent with its legal and regulatory obligations to the State and Federal government.

Official action approving this Organics Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the County on the County authorization date indicated on the cover page hereof.

Official action approving this Organics Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the City on the City authorization date indicated on the cover page hereof.

It is, therefore, agreed as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION
SECTION 1.1 DEFINITIONS. The definitions provided in the WDA and yet to be executed WISE Agreement shall be incorporated into this Agreement. The following terms shall be added and have the meanings set forth below.
“Acceptable Organic Waste” means Residential Organic Waste that consists of Green Material/Wood Waste, Agricultural Material, Manure, Vegetative Food Material, Food Waste and other organic material as may be authorized under the County’s Compostable Material Handling Permits. “Attachment” means an attachment to this OSA, as the same may be amended or modified from time to time in accordance with the terms hereof.
“CalRecycle” means the California Department of Resources Recycling and Recovery, which is a branch of the California Environmental Protection Agency. CalRecycle oversees the State’s waste management and waste reduction programs. CalRecycle was established in 2010 to replace the California Integrated Waste Management Board and is responsible for the enforcement of legislation and regulations and diversion requirements applicable to the Waste Infrastructure System.
”City Acceptable Organic Waste” means all Acceptable Organic Waste which was originally discarded by the first generator thereof within the geographical limits of the City and Residue Waste from the foregoing wherever produced, whether withing or outside the City.

“City Organic Tonnage Limit” the maximum amount of Controllable Organic Waste that County is committed to accept under the Organic Service Covenant as provided in Attachment 3. “Commencement Date” means the date on which the obligations of the parties hereto commence. “Contract Date” means the first date on which this OSA has been executed by both parties hereto. “Controllable Organic Waste” means all City Acceptable Organic Waste with respect to which the City has the legal or contractual ability to determine the processing location and procurement requirements as they relate to the City’s Organics Legislation compliance requirements.
“Consumer Price Index” or “CPI” means the Consumer Price Index published by the Bureau of Labor Statistics for Al Urban Consumers: Water and Sewer and Trash Collection Services in U.S. City Average (CUSR0000EHG). In the event the forgoing index is no longer published during the term of this Agreement, such other index identified by the Bureau of Labor Statistics as a replacement or otherwise generally accepted as a replacement shall be used for purposes of this Agreement; and, in the absence thereof, the County Board of Supervisors shall select an index that it determines most closely reflects the forgoing and best implements the intent of this Agreement.
“Initial Term” has the meaning specified in Section 5.1(A) hereof. “Manure/Stable Bedding Program” means the programs used by the County to mix source separated uncontaminated horse manure and stable bedding into its Organic Infrastructure to create organic product. Current permit requirements set a maximum percentage of 20% manure/stable bedding (“Material”) by weight of total incoming feedstock. County agreement to accept Material is subject to payment of the Organic Contract Rate, available capacity, and compliance with the terms found in Attachment 2.
“Organic Contract Rate” has the meaning specified in Section 4.2 hereof. “Organic Diversion Credit” means credit provided to a local jurisdiction or entity for implementing the diversion of Organic Waste from landfilling through specific activities recognized by the Department of Resources Recycling and Recovery (CalRecycle) including composting, anaerobic digestion, or other methods to meet the State’s waste diversion goals and statutes such as Assembly Bill 939, Assembly Bill 341, Assembly Bill 1594, Assembly Bill 1826, and SB 1383 through waste prevention, reuse, and recycling. “Organic Infrastructure” means the County’s organics processing facilities and programs used to recycle and promote the processing and diversion of Organic Waste into compost or other material that qualifies as diversion under Applicable Law as described in more detail in Attachment 1. “Organics Legislation” means organics recycling legislation including Assembly Bill 1594, Assembly Bill 1826, SB1383 and any future legislation pertaining to the management and diversion of Organic Waste. “Organic ROWP Procurement Credit” means credit provided to a jurisdiction to meet their Recovered Organic Waste Procurement Target under SB 1383 by procuring Recovered Organic Waste Products as permitted by CalRecycle.
“Organics Agreement” means this Organic Services Agreement (“OSA”) between the County and the City as the same may be amended or modified from time to time in accordance herewith. “Organic Take-Back Goal” means the programs that City and County will work toward to create City programs that have the goal of City taking back its Proportional Share of finished compost or other Recovered Organic Waste Product for local application.
“Organic Waste” means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges as defined in Title 14 of the California Code of Regulations, Section 18982(a)(46).

“Processed Green Material” (“PGM”) as defined in Title 27, California Code of Regulations §20690(b)(3) means any plant material that is either separated at the point of generation, or separated at a centralized facility that employs methods to minimize contamination. Green material includes, but is not limited to, yard trimmings, untreated wood wastes, paper products, and natural fiber products. Green material does not include treated wood waste, mixed demolition or mixed construction debris, manure, or plant waste from the food processing industry, alone or blended with soil. Processed green material may include varying proportions of wood waste from urban and other sources and shall be ground, shredded, screened, source separated for grain size, or otherwise processed. This PGM standard is the standard that Controllable Organic Waste must meet in order to be accepted at County’s Organic Infrastructure under the OSA.
“Proportional Share” means 60% of the weight of Controllable Organic Waste City delivered by City to County’s Organics Infrastructure.
“Recovered Organic Waste Product” or “ROWP” means compost, mulch, renewable energy (transportation fuel, electricity, and gas for heating) from anaerobic digestion, and electricity from biomass conversion. “Recycled City Organic Waste” means any otherwise Controllable Organic Waste which is separated from Acceptable Organic Waste by the generator thereof and composted by generator at home, community gardens or other processing and which is not placed in Franchise Hauler bin for collection. “Renewal Term” has the meaning specified in Subsection 5.1(C) hereof. “Residential Organic Waste” means Acceptable Organic Waste normally disposed of by or collected from residential (single family and multi-family) residences. "Residual Waste” means any contaminants, inert materials, overs, or Acceptable Organic Waste that could not be processed at the Department’s Organic Infrastructure that required to be dispose within the Disposal System. “Waste Disposal Agreement” (“WDA”) means the currently operative agreement between the Parties for the disposal of municipal solid waste that is currently set to expire on June 30, 2026. With the exception of specific or conflicting provisions provided in this Organics Agreement, the Parties agree that the terms found in the WDA shall be applied to the interpretation of this OSA. For the purpose of interpretation of this OSA, the Parties also intend that the WDA be read to include terms such as Controllable Organic Waste, where appropriate. “Waste Infrastructure System” or “Disposal System” means active Class III sanitary landfills (“County Landfills”), closed landfills managed by the County, resource recovery operations, Organics Infrastructure, recycling and organics programs, infrastructure and operations, and regional household hazardous waste collection centers and other waste management related systems as may be deemed necessary by the County. “Waste Infrastructure System Enterprise Agreement” or “WISE Agreement” means each of the agreement between the parties that is expected to replace the current WDA that is set to expire on June 30, 2026.

SECTION 1.2 INTERPRETATION. In this Agreement, unless the context otherwise requires:

References Hereto. The terms “hereby”, “hereof”, “herein”, “hereunder”, “herewith”, and any similar terms refer to this Agreement, and the term “hereafter” means after, and the term “heretofore” means before, the Contract Date.

Gender and Plurality. Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa.

Persons. Words importing persons include firms, companies, associations, general partnerships, limited partnerships, trusts, businesstrusts, corporations and other legal entities, including public bodies, as well asindividuals.

Headings. The table of contents and any headings preceding the text of the Articles, Sections and subsections of this Agreement shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect.

No Third Party Beneficiaries. Nothing in this Agreement is intended to confer on haulers or any other person other than the parties hereto and their respective permitted successors and assigns hereunder any rights or remedies under or by reason of this Agreement.

Counterparts. This Agreement may be executed in any number of original counterparts. All such counterparts shall constitute but one and the same Agreement.

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

Severability. If any clause, provision, subsection, Section or Article of this Agreement shall be ruled invalid by any court of jurisdiction, then the parties shall: (1) promptly meet and negotiate a substitute for such clause, provision, subsection, Section or Article which shall, to the greatest extent legally permissible, effect the intent of the parties therein; (2) if necessary or desirable to accomplish item (1) above, apply to the court having declared such invalidity for a judicial construction of the invalidated portion of this Agreement; and (3) negotiate such changes in, substitutions for or additions to the remaining provisions of this Agreement as may be necessary in addition to and in conjunction with items (1) and (2) above to effect the intent of the parties in the invalid provision. The invalidity of such clause, provision, subsection, Section or Article shall not affect any of the remaining provisions hereof, and this Agreement shall be construed and enforced as if such invalid portion did not exist, unless such invalidity frustrates the underlying primary purpose of the Agreement.

ARTICLE II

REPRESENTATIONS AND WARRANTIES
SECTION 2.1 REPRESENTATIONS AND WARRANTIES OF THE CITY. The City represents and warrants that:
(A) Existence. The City is a general law or charter city or a Special District or Sanitary District validly existing under the Constitution and laws of the State. (B) Due Authorization. The City has duly authorized the execution and delivery of this Organics Agreement, and this Organics Agreement has been duly executed and delivered by the City.

SECTION 2.2 REPRESENTATIONS AND WARRANTIES OF THE COUNTY. The County represents and warrants that:
(A) Existence. The County is a political subdivision of the State of California validly existing under the Constitution and laws of the State.
(B) Due Authorization. The County has duly authorized the execution and delivery of this OSA, and this OSA has been duly executed and delivered by the County.

ARTICLE III

DELIVERY AND ACCEPTANCE OF

ORGANIC WASTE AND PROVISION OF

ORGANIC PROCESSING SERVICES
SECTION 3.1 DELIVERY OF ORGANIC WASTE.
(A) Organic Waste Covenant. Subject to the occurrence of the Commencement Date and throughout the Term of this OSA, and subject to available Organic Infrastructure capacity, the City shall exercise all legal and contractual power and authority which it may possess from time to time to deliver or cause the delivery of all Controllable Organic Waste (up to City’s Organic Tonnage Limit as provided in Attachment 3) to the Waste

Infrastructure System in accordance with the terms of this OSA. (B) Recycled City Organic Waste.

1. Non-Mandatory Organic Waste City Programs: The parties hereto acknowledge the responsibility of the City to meet its own recycling and landfill diversion goals contained in the Act and Organics Legislation.

Nothing in this Agreement is intended or shall be interpreted to prohibit or impair the ability of the City to meet such responsibilities, or to restrict the right of the residents, businesses or organizations in the City to practice source separation, recycling, composting or other materials recovery activities, or to restrict the right of the City to conduct, sponsor, encourage or require such activities in any form. No reduction in the amount of Controllable Organic Waste generated in the City and delivered to the Organic Infrastructure by or on behalf of the City which may result from any such source separation or recycling program shall cause the City any liability hereunder (other than potential adjustment to the Organic Contract Rate as may be negotiated by the Parties as authorized under this OSA, and shall not constitute a breach of this Agreement.)

2. Mandatory Organic Waste City Collection Programs: City shall provide data and information to County regarding City’s mandatory Organic Waste collection programs including but not limited to the tonnage of organics collected by the City for diversion under this OSA. The information will be used to provide education and outreach for participation with the goal of minimizing contamination and increasing diversion. (C) Organic Diversion Credit. City shall receive Organic Diversion Credit for City’s Controllable Organic Waste minus any Residual Waste delivered by City and accepted by County and processed into Recovered Organic Waste Product at the County’s Organic Infrastructure. (D) Organic ROWP Procurement Credit. City shall receive Organic ROWP reports for finished recovered organics waste products procured from County that meets the procurement requirements of Title 14 of the California Code of Regulations, Section 18993.1 et seq. City shall receive Organic ROWP Procurement Credit as follows:

1. County will assist City in developing local City programs and opportunities designed to enable the City to meet its own ROWP requirements.

2. City shall be entitled to “take back” its Proportional Share of SB 1383 compliant, STA Certified compost, mulch or other ROWP products from County Organics Infrastructure and used as ROWP Procurement Credit.

3. County will provide reports and allocate credit associated with City resident ROWP pickup as well as commercial landscapers from City that collect ROWP from County Organic Infrastructure.

4. City will be eligible to receive ROWP Procurement Credit for excess Acceptable Recovered Organic Waste Product that County is able to market beyond that needed for the County unincorporated areas or that is not otherwise committed. (*County makes no guarantees that it will provide City with 100% ROWP Procurement Credit.)
(E) Organic Take-Back Goal. City is not required to “take back” its Proportional Share of STA Certified finished compost, mulch, or other ROWP from the County’s Organic Infrastructure, however City and County will work toward creating City programs that have the goal of City taking back its Proportional Share of finished compost or other Recovered Organic Waste Product for local application (“Organic Take-Back Goal”) to meet City’s ROWP procurement requirements.
(F) Procurement of Additional ROWP. Pursuant to terms agreeable to both Parties, City may request to procure Recovered Organic Waste Product in addition to its Proportional Share within the same Contract Year.
(G) OSA Conditions. As a condition of participating in the County’s Organics Infrastructure,

City agrees to the following terms:

1. All Controllable Organic Waste delivered to the County’s Organics Infrastructure shall meet the standards as set forth in Attachment 2;

2. City or its Franchise Hauler shall pay the Organics Contract Rate for all Organic Waste delivered to the County’s Organic Infrastructure for processing into Recovered Organic Waste Product;

3. City shall provide information to County on a quarterly basis that identifies where Controllable Organic Waste being delivered to the County’s Organic Infrastructure originated and shall ensure that the organic material being delivered meets the definition of City Acceptable Organic Waste.

4. Bulk ROWP: City shall be entitled to arrange for the Take Back (at City cost) from County Organic Infrastructure compost, mulch and other Recovered Organic Waste Product in bulk form free of charge.

5. Non-Bulk ROWP: County may establish separate fees for provision of non-bulk material including but not limited to bagged material or compost wattles. City shall be entitled to arrange for the Take Back of Non-Bulk ROWP at City cost.

6. City’s Proportional Share shall be calculated as 60% of the weight of Controllable Organic Waste City delivers to County’s Organics Infrastructure by City. (H) No Right of Organic Waste Substitution. Nothing in this Agreement shall authorize or entitle the City to deliver, or cause the delivery to the County’s Organic Infrastructure, Acceptable Organic Waste originating from or generated outside the jurisdiction of the City, nor obligate the County to receive or dispose of any such Acceptable Organic Waste into the Waste Infrastructure System. The City shall not assign in whole or in part its right to deliver or cause to be delivered Controllable Organic Waste to the County hereunder, and shall not permit any Acceptable Organic Waste originating from or generated outside the jurisdiction of the City to be substituted for Controllable Organic Waste for any purpose hereunder.

SECTION 3.2 PROVISION OF ORGANIC PROCESSING SERVICES BY THE COUNTY. (A) Organic Service Covenant. Commencing on the Commencement Date, the County shall provide or cause the provision of the service of receiving and processing of City’s Controllable Organic Waste (up to the City Organic Tonnage Limit provided in Attachment 3) at the County’s Organics Infrastructure as described in more detail in Attachment 1. The County shall exercise all reasonable efforts to minimize the costs incurred in complying with the Organic Service Covenant consistent with prudent solid waste management practice and environmental considerations and under Applicable Law.
(B) Receipt of Controllable Organic Waste. Upon acceptance of the Controllable Organic Waste that meets the PGM standards provided in Attachment 2, County shall process the Organic Waste into compost, mulch or other ROWP as specified in Title 14 of the California Code of Regulations Section 18993.1 (C) Education and Outreach. The Department will assist the City and its hauler in their efforts on Organic education and outreach with the goal of the City meeting its organic diversion and ROWP procurement requirements.
(D) Designated Facilities. County and City will coordinate in determining the primary organic processing facilities and tonnages (as reflected in Attachment 1) used for receiving and processing of Controllable Organic Waste. The Department shall immediately advise the City by telephone of any situation, event or circumstance which results in the partial or complete inability of the County to receive Controllable Organic Waste at any particular County Organics Infrastructure within the Waste Infrastructure System, its effect on the County’s ability to perform its obligations hereunder, and the County’s best estimate of the probable duration. The Department shall confirm such advice in writing within twenty four (24) hours of the occurrence of any such inability. The County shall use its best efforts to resume normal operation of the Organics Infrastructure primarily used by the City as soon as possible. In the event a situation, event or circumstance results in the partial or complete inability of the County to receive Controllable Organic Waste at any particular County Organics Infrastructure within the Waste Infrastructure System the County shall have the right to redirect Controllable Organic Waste to another landfill or County Organics Infrastructure within the Waste Infrastructure System for the duration of the situation, event or circumstance; In no event shall the County be required to accept Controlled Organic Waste if it does not have sufficient permitted organic processing capacity

within the Waste Infrastructure System.
(E) Compliance with Service Covenant Not Excused for any Reason. Commencing on the Commencement Date, and subject to the terms of this Agreement, the obligations of the County to duly observe and comply with the Organic Service Covenant, in accordance with Applicable Law, shall apply continuously and without interruption for the Term of this OSA. In the event that any Change in Law, situation, event or other Uncontrollable Circumstance impairs or precludes compliance with the Organic Service Covenant by the means or methods then being employed by the County, the County shall use best efforts to implement alternative or substitute means and methods to enable it to satisfy the terms and conditions of the Service Covenant. In the event that a Change in Law precludes the County from complying with such covenants with the means or methods then being employed and from utilizing any alternate or substitute means or methods of compliance, the County shall continuously use all reasonable efforts to effectuate executive, legislative or judicial change in or relief from the applicability of such law so as to enable the County lawfully to resume compliance with such covenants as soon as possible following the Change in Law.

County failure to duly observe and comply with the Organic Service Covenant due to its efforts to comply with Applicable Law, shall not constitute a breach under this Organics Agreement, and shall excuse County performance to the extent necessary to comply with Applicable Law.

If the alternative or substitute means and methods proposed for the County to observe and comply with the Organic Service Covenant are more costly than the previously used means and methods, the Parties shall negotiate a mutually agreeable new Organic Contract Rate. If the Parties are unable to agree on a new Organic Contract Rate, the Parties may terminate this agreement without penalty with ninety (90) days notice.

SECTION 3.3 COUNTY RIGHT TO REFUSE ORGANIC WASTE.
(A) Right of Refusal. Notwithstanding any other provision hereof, the County may refuse delivery of:
(1) Hazardous Waste;
(2) Acceptable Organic Waste delivered by City but originating from or generated outside the jurisdiction of the City;
(3) Acceptable Organic Waste delivered in excess of the City Organic Tonnage Limit listed in the Attachment 3;
(4) Acceptable Organic Waste in excess of permitted limits; (5) Acceptable Organic Waste that would result in County violating Applicable Law; (6) Controllable Organic Waste that does not meet the requirements found in Attachment 2;
SECTION 3.4 COUNTY PROVISION OF OTHER ORGANIC WASTE DIVERSION SERVICES. (A) Food Waste Processing and Diversion. County is in the process of evaluating the options and feasibility of development of a Commercial Food Waste Processing Infrastructure. If developed, City will be provided an opportunity to participate in this service on terms separately agreed to by the Parties. (B) Edible Food Recovery Programs. County is in the process of evaluating the options and feasibility of development of regional County-wide edible food recovery programs to assist Cities in meeting State mandated goals. The intent of Edible Food Recovery to address the food hierarchy and wasted food scale on a regional level through collaboration of all jurisdictions, key local, State and federal stakeholders, the non-profit sector and business sector. City agrees to cooperate with County efforts and collaborate on data analysis and reporting to provide jurisdictions reports for compliance under SB1383.

(C) Separate City -County Diversion Service Agreements. Nothing in this Agreement is intended to limit the right of the County to enter into a separate agreement with the City or any other person, jurisdiction, or entity to provide source reduction, materials recovery, recycling, composting or other waste diversion services.

ARTICLE IV

ORGANIC CONTRACT RATE
SECTION 4.1 CHARGING AND SECURING PAYMENT OF ORGANIC CONTRACT RATE.

The City acknowledges that the County shall have the right to charge and collect an Organic Contract Rate for the acceptance and processing of Controllable Organic Waste delivered to the Organic Infrastructure by City or its Franchise Hauler. City acknowledges that the County shall have the right to establish as part of the operating rules and regulations reasonable measures to secure the payment of all Organic Contract Rates.

SECTION 4.2 ORGANIC CONTRACT RATE.
(A) Establishment of Contract Rate. The Organic Contract Rate payable by each City or Franchise Hauler shall be $67/Ton up to the City Organic Tonnage Limit. (B) Special Charges. Notwithstanding Section 4.2(A), the County shall have the right to impose special charges for items such as bagged material or compost wattles; new or expanded services; or receipt of hard to handle materials, such as bulky materials, construction and demolition debris, tree stumps, biosolids and sludge. Such special charges shall be calculated to reflect the reasonable incremental costs to the County of providing the new or expanded services or accepting such hard to handle materials. (C) Escalation.

1. Annual CPI Adjustment: The Organics Contract Rate shall be adjusted each July 1, beginning 2027. The change will be equal to the percentage change in the Consumer Price Index - Consumer Price Index for Al Urban Consumers: Water and Sewer and Trash Collection Services in U.S. City Average (CUSR0000EHG) as measured from the October twenty one (21) months prior to the rate adjustment to the October immediately preceding the rate adjustment. In the event that the change in the change in CPI as described above is negative rather than positive, no rate adjustment will be made for that year.

Organic Contract Rate True-up: County will notify City prior to April 30, 2029 (and every three (3) years thereafter) and advise whether actual inflation rate since execution should be frozen for a period of time (in circumstances where Department revenues exceed Department Full Cost Recovery needs) or to determine whether the Organic Contract Rate should be increased beyond CPI as described above (in circumstances where Department costs exceed CPI) to ensure that Department revenues meet Full Cost Recovery.

2. Adjustment Resulting from Increased Fees: In addition to the other adjustments specified herein, the Organic Contract Rate shall be automatically adjusted to reflect the imposition of new fees or increases in existing fees relating to the County’s processing of Controllable Organic Waste imposed by State, federal or other agencies. The County shall provide notice of any increase pursuant to this Section as soon as practicable after becoming aware of the imposition of any fees described above.

ARTICLE V
TERM
SECTION 5.1 EFFECTIVE DATE AND TERM.
(A) Initial Term. This Organic Services Agreement shall become effective, shall be in full force and effect and shall be legally binding upon the City and the County from the Contract Date and shall continue in full force and effect until June 30, 2036, unless earlier terminated in accordance with its terms, in which event the Term shall be deemed to have expired as of the date of such termination.

(B) Bi-Annual Opener. In light of the significant changes in law by the California Legislature to address climate change, the Parties agree to meet at least bi-annually or earlier at the request of County to review the Organic Contract Rate and discuss the need for additional investment into the Organic Infrastructure to respond to existing or new legislative requirements, diversion requirements, provision of new services, or other matters of mutual concern to the Parties.
(C) Option to Renew. This Agreement shall be subject to renewal by mutual agreement of the Parties, on or before June 30, 2036 for an additional term of 10 years (the “Renewal Term”) on the same terms and conditions as are applicable during the Initial Term hereof or on amended terms as may be mutually agreed to by the Parties. The City shall give the County written notice of its election to renew this Agreement on or before June 30, 2034. If the parties do not execute a renewal of this Agreement prior to June 30, 2036 it shall expire.

ARTICLE VI

GENERAL PROVISIONS
SECTION 6.1 NOTICES. Any notice or communication required or permitted hereunder shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective Parties set forth on the cover page of this Agreement. Changes in the respective addresses to which such notices may be directed may be made from time to time by any Party by notice to the other Party.

SECTION 6.2 ATTORNEYS FEES. In any action or proceeding to enforce or interpret any provision of this Agreement, each Party shall bear their own attorney’s fees, costs and expenses.

SECTION 6.3 RELATIONSHIP OF THE PARTIES. Neither party to this Agreement shall have any responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the other party hereto, whether accrued, absolute, contingent or otherwise, or whether due or to become due. The County is an independent contractor of the City and nothing in this Agreement shall be deemed to constitute either party a partner, agent or legal representative of the other party or to create any fiduciary relationship between the parties.

SECTION 6.4 NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no event shall either Party hereto be liable to the other or obligated in any manner to pay to the other any special, incidental, consequential, punitive or similar damages based upon claims arising out of or in connection with the performance or non- performance of its obligations or otherwise under this Agreement, or the material inaccuracy of any representation made in this Agreement, whether such claims are based upon contract, tort, negligence, warranty or other legal theory.

SECTION 6.5 AMENDMENTS. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by written agreement duly authorized and executed by both Parties.

SECTION 6.7 NOTICE OF LITIGATION. Each Party shall deliver written notice to the other of any Legal Proceeding to which it is a party and which questions the validity or enforceability of this Agreement executed by the City or the County or any Legal Entitlement issued in connection herewith.

SECTION 6.8 FURTHER ASSURANCES. At any and all times the City and the County so far as may be authorized by law shall pass, make, do, execute, acknowledge and deliver any and every such further resolutions, acts, deeds, conveyances, instruments, assignments, transfers and assurances as may be necessary or reasonably requested by the other in order to give full effect to this Agreement.

SECTION 6.9 ASSIGNMENT OF AGREEMENT. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either Party hereto without the prior written consent of the other Party, which may be withheld in the other Party’s sole discretion. Notwithstanding the foregoing, either Party may assign this Agreement to another public entity, subject to the reasonable consent of the other party. In such circumstances the Party not requesting the assignment shall have the right to demand assurances of the financial, technical and legal ability of the proposed assignee to undertake the responsibilities and obligations of the assigning Party.

SECTION 6.10 BINDING EFFECT. This Agreement shall bind and inure to the benefit of the Parties hereto and any successor or assignee acquiring an interest hereunder consistent with the provisions of Section 6.9 hereof.

Signature Page to Follow

IN WITNESS WHEREOF, COUNTY and CITY have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written.

COUNTY OF ORANGE
Date By
Director, OC Waste & Recycling
APPROVED AS TO FORM:

COUNTY COUNSEL

ORANGE COUNTY, CALIFORNIA
By
Date
Date By
[NAME]
City Representative
City of XX
Date By
[NAME]
City Representative
City of XX
APPROVED AS TO FORM:

By _______________________
Date ______________________________

Attachment 1

COUNTY OF ORANGE ORGANIC INFRASTRUCTURE

Attachment 1

COUNTY OF ORANGE ORGANIC INFRASTRUCTURE
The County of Orange owns and operates a network of three commercial organic processing facilities co-located at each of the active landfills. Each of the organic processing facilities have the ability to receive organic material and to produce organic products for cities to meet their Take-Back requirements specified within this agreement. Products produced at the organic processing facilities meet CalRecycle’s SB 1383 procurement requirement and are certified under the US Composting Council’s Standard of Testing Assurance (STA) Program. Product offerings include compost and composted mulch. Additional products may be offered as determined by the County.

A summary of each of the organic processing facilities is listed below:

Valencia Greenery (Co-Located at Olinda Alpha Landfill) 1942 N. Valencia Avenue
Brea, CA 92823
Permitted Maximum Tonnage (Open Windrow): 94 tons per day Proposed Permitted Maximum Tonnage (Covered Aerated Static Pile): 228 tons per day Permitted Hours of Operation: Monday through Saturday 6:00 am to 4:00 pm Ancillary Operation Hours: 24 hours per day/7 days a week Bee Canyon Greenery (Co-Located at Frank R. Bowerman Landfill) 11002 Bee Canyon Access Road
Irvine, CA 92602
Permitted Maximum Tonnage (Open Windrow): 210 tons per day Proposed Permitted Maximum Tonnage (Covered Aerated Static Pile): 876 tons per day Permitted Hours of Operation: Monday through Saturday 7:00 am to 5:00 pm Ancillary Operation Hours: 24 hours per day/7 days a week Capistrano Greenery (Co-Located at Prima Deshecha Landfill) 32250 Avenida La Pata
San Juan Capistrano, CA 92675
Permitted Maximum Tonnage (Open Windrow): 204 tons per day Proposed Permitted Maximum Tonnage (Covered Aerated Static Pile): 536 tons per day Permitted Hours of Operation: Monday through Saturday 7:00 am to 5:00 pm Ancillary Operation Hours: 24 hours per day/7 days a week This list may be modified/expanded at the discretion of the County.

Attachment 2

SPECIFICATIONS FOR CONTROLLABLE ORGANIC WASTE AS PROCESSED GREEN WASTE

MATERIAL (PGM) AT COUNTY ORGANIC INFRASTRUCTURE

Attachment 2

SPECIFICATIONS FOR CONTROLLABLE ORGANICE WASTE AS PROCESSED GREEN WASTE

MATERIAL (PGM) AT COUNTY ORGANIC INFRASTRUCTURE

DESCRIPTION
Processed Green Material (PGM) consists of yard waste, grass clippings, leaves, tree trimmings and plant-based materials which have been sorted to remove contamination and processed by shredding or grinding. PGM should not contain manure, stable waste or pet waste, which can create odors.

Processed Green Material is defined as following (California Code of Regulations, Title 27, Division 2, Subdivision 1, Chapter 3, Subchapter 4, Section 20690 [b] [3]):
• Processed Green Material – means any plant material that is either separated at the point of generation or separated at a centralized facility that employs methods to minimize contamination. Green material includes, but is not limited to, yard trimmings, untreated wood wastes, paper products, and natural fiber products. Green material does not include treated wood waste, mixed demolition or mixed construction debris, manure, or plant waste from the food processing industry, alone or blended with soil. Processed green material may include varying proportions of wood waste from urban and other sources and shall be ground, shredded, screened, source separated for grain size, or otherwise processed.

CONTAMINANT DEBRIS
The PGM should be free from all contaminant debris (glass, plastic, film plastic, metals, etc.) as well as salt and deleterious material such as clods, coarse objects, rocks, inert debris, and Material Recovery Facility (“MRF”) fines.

County personnel visually inspect the PGM loads as they come in, making sure that the specifications are met and to determine if the loads are contaminated (i.e., mixed with paper, plastics and other trash.) If the loads appear to have unacceptable contamination in excess of 0.5% either by weight or volume, the PGM loads will not be allowed into the Organic Infrastructure and the City and/or hauler will be notified that contaminated PGM loads are unacceptable. The PGM will be deemed as municipal solid waste and the City and/or hauler will have the option to take the material to the landfill for disposal or be returned to the hauler’s facility for additional processing. For material that is physically dumped at the unloading area and is deemed unacceptable by OC Waste & Recycling staff, the material will be reloaded into the transfer vehicle for reprocessing at hauler’s processing facility or sent to the landfill for disposal.

Hauler will be charged the current “Hard-to-Handle” fee for re-loading services and disposal of unacceptable material.

SIZE
The particle size of the PGM acceptable is between ½-inch and 3 inches in length between ½-inch and 1 inch in width and between ½-inch and 1 inch in thickness. No particle should exceed 3 inches in any dimension.

MOISTURE CONTENT
The moisture content of the PGM should be in the range of 50-60 percent. If the PGM’s moisture content is unacceptable and cannot be received for processing at the County’s Organic Infrastructure Facilities, the material will be re-loaded into the transfer vehicle for reprocessing at hauler’s processing facility or sent to the landfill for disposal.

The hauler will be charged the current “Hard-to-Handle” fee for re-loading services and disposal of unacceptable material.

FOOD WASTE
Residential food waste mixed with PGM as part of a city organic collection program is acceptable provided that the food waste is free of contaminant debris (glass, plastic, food packaging, non-compostable silverware, soiled napkins,

etc.). No commercial or source-separated food waste will be accepted except for cases where the County has entered into an agreement with a City to accept specific source separated organic material as Additional Feedstock as described below.

SOURCE SEPARATED MANURE
Subject to available capacity, City and/or Hauler may bring non-residential, source separated manure and stable bedding pursuant to the following Manure/Stable Bedding Program requirements:

1. Material Quantity: manure/stable bedding must be uncontaminated which means free of any hazardous materials, food waste packaging, plastics, glass, and any large bulky items and inert materials that need to be further sized or removed for composting. (“Material”)

2. Material Volume: County and City/Hauler will determine the anticipated volume of Material to ensure that the County’s Organic Infrastructure has sufficient capacity to manage the proposed amount of Material.

3. Material will be load checked to determine if it meets the established quality standards. If contaminants exceed

0.5% (by weight or volume), the load is deemed contaminated and not meeting quality standard for use in the Manure/Stable Bedding Program.

4. Material that is deemed unacceptable will be subject to the fees established by OCWR for this material type.

Material that does not meet the established quality standards will be charged as follows:
a. If determined not to meet quality standards before Material is unloaded, standard disposal rates will apply.
b. If determined not to meet quality standards after Material is unloaded (or partially unloaded), hard-to-handle disposal rates will apply.

5. Material Delivery:
a. All Material deliveries will be scheduled and coordinated with OCWR prior to delivery. Any changes to material delivery quantities or days will be coordinated with OCWR prior to making the change.
b. While OCWR will remain as flexible as possible on timing of deliveries, material deliveries will be limited to Monday through Friday between 8:00 am and 2:00 pm and subject to holiday schedules. Should the delivery times change, then OCWR shall give two (2) days prior notice of the delivery time change.
c. Upon delivery, OCWR staff will record exact tonnage, name of hauler/transporter provider, and note distinguishing characteristics of feedstock and other pertinent information. d. Deliveries made without OCWR prior approval may be refused or charged at the established rate.
e. OCWR reserves the right to deny a request to deliver for any reason. (i.e., OCWR does not guarantee that it will accept manure/stable bedding under this program. Instead, OCWR will accept Material based on its operational need and will make every effort to accommodate City’s/hauler Material except when a reduction or stoppage is needed.)

ADDITIONAL FEEDSTOCK
The County at its discretion may accept additional material types such as food waste and manure based on availability and permitting conditions at each of the County’s organic processing facilities. The County will work with City to identify the specifications for accepting the material types including scheduling of deliveries and quantities.

CHANGES TO SPECIFICATIONS
County reserves the right to modify the Specifications found in this Appendix due to a change in law or regulation or in consideration of operational or Organic Processing Infrastructure needs. County shall provide 90 days notice regarding changes to this Appendix.

Attachment 3

CITY ORGANIC TONNAGE LIMIT

Attachment 3

CITY ORGANIC TONNAGE LIMIT
The City Organic Tonnage Limit listed in the Attachment is the maximum amount of Controllable Organic Waste that County is committed to accept under the Organic Service Agreement.

Jurisdiction Designated Greenery City Organic Tonnage Limit Daily Limit1 Monthly Limit2 Annual
Limit
TBD ________tons _________ tons _______ tons
TBD
TBD
TBD

1. Daily Limit includes up to 20% by weight of source separated manure and stable bedding.

2. In the event City delivers less than their monthly limit, County may allocate unused City capacity at its discretion.

Attachment 4

ORGANIC INFRASTRUCTURE RESOLUTION

FRANCHISE HAULER ACKNOWLEDGMENT
THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of April 7, 2026 (the “Acknowledgment”), and between the City of Fountain Valley (the “City”) and Rainbow Disposal Company, Inc. (the “Franchise Hauler”).

WITNESSETH
WHEREAS, the City and the Franchise Hauler have heretofore entered into an agreement entitled Franchise Agreement dated as of October 3, 2006, and as amended November 17, 2015 (Amendment No. 1) and further amended on November 15, 2016 (Amendment No. 2), further amended on August 23, 2022 (Amendment No. 3) (the “Franchise”); and
WHEREAS, the City has issued to the Franchise Hauler a permit, license, approval or other authorization the “Authorization”) which allows the Franchise Hauler to provide solid waste collection services within the City; and
WHEREAS, the Franchise provides for the collection and disposal of certain municipal solid waste as described therein (“Franchise Waste”) generated within the City; and WHEREAS, the County of Orange (the “County”) owns, manages and operates a Waste Infrastructure System that is permitted to accept or process Acceptable Waste for disposal or diversion; and WHEREAS, the City and the County have heretofore entered into a Waste Infrastructure System Enterprise Agreement (the “WISE Agreement”), dated as of April 7, 2026; and WHEREAS, the WISE Agreement details responsibilities for disposal of municipal solid waste and may include processing of identified Organic Waste for diversion, generated within the boundaries of the City, and determine that the execution of the WISE Agreement will serve the public health, safety and welfare of the residents of the City and County, by maintaining public ownership and stewardship over the Waste Infrastructure System and providing disposal rate stability, predictable and reliable long-term disposal service, enhanced organics processing to assist the City in meeting its organics diversion requirements, and the continuation of sound environmental management; and
WHEREAS, under the WISE Agreement, the County has agreed to provide long-term disposal of all municipal solid waste generated within the City and may also provide for Organic Waste processing under an OSA and the City has agreed to exercise all legal, and contractual power which it possesses from time to time to deliver or cause the delivery of such waste to the Waste Infrastructure System; and WHEREAS, the provisions of the WISE Agreement guarantee capacity for the long term disposal and processing of waste at specified rates generated in the City provide significant benefits to the Franchise Hauler; WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise Hauler explicitly acknowledges the aforementioned benefits to the City, the County and the Franchise Hauler in providing for the disposal of all Franchise Waste to the Waste Infrastructure System; and WHEREAS, the City and the Franchise Hauler desire to enter into this Acknowledgment to assure that the City and the Franchise Hauler will be entitled to the benefits of the WISE Agreement and to assure conformity with the waste delivery obligations which have been agreed to by the City under the WISE Agreement through the delivery of waste by the Franchise Hauler to the Waste Infrastructure System; and WHEREAS, the Franchise Hauler’s agreement to deliver Franchise Waste to the Disposal System under this Acknowledgment is given in consideration of the Franchise Hauler’s right to receive the Contract Rate for such disposal and processing as provided in the WISE Agreement.

Attachment #2

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1. Capitalized terms used and not otherwise defined herein are used as defined in the WISE Agreement.

2. The Franchise Hauler hereby waives any right which it may possess under applicable law to contest on any ground, constitutional, statutory, case law, administrative or otherwise, (a) the right, power or authority of the County or the City to enter into or perform their respective obligations under the WISE Agreement, (b) the enforceability against the County or the City of the WISE Agreement, or (c) the right, power or authority of the City to deliver or cause the delivery of all Controllable Waste to the Disposal System in accordance with this Acknowledgment.

3. The City and the Franchise Hauler each hereby represent that this Acknowledgment has been duly authorized by all necessary action of their respective governing bodies.

4. The Franchise Hauler shall deliver or cause to be delivered all Controllable Waste (including all Residue from the processing by any means, wherever conducted, of Controllable Waste), to the Designated Facility in the Waste Infrastructure System/Disposal System, and shall otherwise assist the City in complying with its obligations under the Waste Disposal Covenant in Section 3.1 of the WISE Agreement.

5. Unless expressly authorized by the Department, the Franchise Hauler shall only haul Controllable Waste to the Designated Facility.

6. The Franchise Hauler shall not haul Controllable Waste to any materials recovery facility, composting facility, intermediate processing facility, recycling center, transfer station or other waste handling or management facility unless the contract or other agreement or arrangement between the Franchise Hauler and the operator of such facility is sufficient in the opinion of the County to assure that the Residue from such facility constituting City Acceptable Waste (or Tonnage equivalencies) and the City Acceptable Waste transferred by such facility shall be delivered to the Disposal System in compliance with the Waste Disposal Covenant.

7. The Franchise Hauler shall pay the Contract Rate imposed by the County for the disposal of all Controllable Waste, which rate shall be subject to potential adjustment necessary to reflect the circumstances set forth in the Agreement.

8. Nothing in this Acknowledgment is intended to restrict any right or responsibility explicitly given the Franchise Hauler in any City Franchise Agreement to recycle City Acceptable Waste, except as provided in paragraph 5 above with respect to Residue from any such recycling operations.

9. The obligations of the Franchise Hauler under this Acknowledgment shall apply notwithstanding any provision of the Franchise which may conflict herewith.

10. This Acknowledgment may be enforced by the City by any available legal means. In any enforcement action by the City, the burden of proof shall be on the Franchise Hauler to demonstrate compliance herewith.

11. This Acknowledgment shall be in full force and effect and shall be legally binding upon the City and Franchise Hauler from the date hereof and shall continue in full force and effect until the earlier of (i) the end of the term of the Franchise or (ii) the end of the Term of the WISE Agreement.

12. The City and Franchise Hauler agree that the County shall be an express third-party beneficiary of this Acknowledgment, and shall be entitled to independently enforce the obligations of the Franchise Hauler hereunder. There shall be no additional third party beneficiaries under this Acknowledgement.

13. The Franchise Hauler agrees to assist the County in verifying tonnage collected by the Franchise Hauler and providing information required by the County. The Franchise Hauler will provide upon request refuse tonnage collected within the County, and outside the County (if relevant to confirming tonnage origination), separated by jurisdiction, by load type (residential, commercial, roll-off box, etc.), and by facility to which it was delivered (specify which landfill or transfer station). Hauler will provide customer service levels and route lists.

The Franchise Hauler will cooperate with County audits to verify reported origin of tonnage by making records and personnel available to the County and/or its auditors.

IN WITNESS WHEREOF, the parties have caused this Acknowledgment to be executed by their duly authorized officers or representatives as of _____ day of __________, 2026. “CITY”
Signature:

Printed Name:

Title:

APPROVED AS TO FORM:

By
Harper & Burns LLP
Attorneys for the City
Date March 26, 2026
“FRANCHISE HAULER”
Signature:

Printed Name: Dan Capener
Title: General Manager

CERTIFICATE OF SECRETARY

RELATING TO THE FRANCHISE HAULER ACKNOWLEDGEMENT

FOR THE CITY OF FOUNTAIN VALLEY

IN THE STATE OF CALIFORNIA
The undersigned, Secretary of RAINBOW DISPOSAL CO., INC., a California corporation (the ìCompanyî), hereby certifies that the following is a true and correct copy of the resolution which was duly adopted by unanimous written consent of the Board of Directors of the Company on August 23, 2021, that such resolution has not been rescinded, amended or modified in any respect, and is in full force and effect on the date hereof:

RESOLVED, that (i) any individual at the time holding the position of General Manager or Area Director, Finance; and in connection with environmental solutions transactions only, General Manager; Division President; or Division Vice President Finance be, and each of them hereby is, appointed as an Authorized Agent, to act in the name and on behalf of the Company and to include the execution of related documents, in connection with the day-to-day business activities of the Company, and further, that (ii) in addition to any one of the foregoing positions, any individual at the time holding the position of Area Director, Business Development; Area Director, Operations; Market Vice President; Vice President, Environmental Services be, and each of them hereby is, appointed as an Authorized Agent to execute any bid and proposal, and if awarded, any related contract for services to be performed by the Company and any bond required by such bid, proposal or contract, all in accordance with the existing Levels of Authority and other relevant policies and procedures.

I further certify that DANIEL CAPENER holds the title of General Manager and in such capacity has full authority to act in the name and on behalf of the Company as set forth in the foregoing resolution.

WITNESS MY HAND, this 23rd day of March, 2026.
__________________________________
Lauren McKeon, Secretary

WISE AGREEMENT
Service Coordinator Designation Form
Section 3.5(C) of the WISE Agreement reads as follows:
“Service Coordinator. The County and the City each shall designate in writing thirty (30) days prior to the expected Commencement Date a person to transmit instructions, receive information and otherwise coordinate service matters arising pursuant to this Agreement (each a “Service Coordinator”). Either Party may designate a successor or substitute Service Coordinator at any time by notice to the other Party.” City/District Name: City of Fountain Valley
Service Coordinator Name: Soumelia Gountoumas
Service Coordinator Telephone Number: 714-593-4441
Service Coordinator Email Address: [email protected] This designation is effective immediately and replaces all prior designations.

Approved by City Manager/General Manager or designee:

Maggie Le
Date
Attachment #3

NOTICE OF PROPOSITION 218 PROTEST
HEARING REGARDING PROPOSED FIVEYEAR RESIDENTIAL TRASH COLLECTION

RATE ADJUSTMENT SCHEDULE
NOTICE IS HEREBY GIVEN that the Fountain Valley City Council will hold a public hearing on Tuesday, June 2, 2026, at 6:00 p.m., in the City Council Chambers, 10200 Slater Avenue,to consider a proposed initial increase in residential trash collection rates effective July 1, 2026, together with a proposed five-year schedule of annual residential trash rate adjustments, based on increased County landfill disposal fees under the City’s WISE Agreement with Orange County Waste & Recycling. Initial residential rate adjustments would be:

Category Current Proposed
7/1/2026
Monthly
Increase
Method
Residential $32.27 $34.83 $2.56 Prior rate + WISE
adjustment
Senior Residential
$28.28 $30.51 $2.23 Prior rate + WISE
adjustment
WISE ADJUSTMENT: For each adjustment year, the annual residential rate adjustment shall be determined by applying the percentage increase in the County contract landfill disposal rate under the WISE Agreement to the disposal portion of the monthly residential trash collection rate and the monthly senior residential trash collection rate, excluding the City administrative fee. For purposes of this five-year schedule, the disposal portion of the monthly residential trash rate is fixed at 15.62% of the total monthly residential trash rate. NOTE: The 15.62% figure is not the annual rate increase; it is the fixed disposal portion of the monthly residential trash rate used to calculate the annual WISE adjustment. Under Proposition 218, protests to the proposed rate adjustment schedule must be delivered in writing to the City Clerk, City of Fountain Valley, 10200 Slater Avenue, Fountain Valley, CA 92708, prior to the conclusion of the Public Protest Hearing on June 2, 2026. Please include the Fountain Valley address of the affected property with any correspondence.

PROPOSED 5-YEAR RESIDENTIAL TRASH RATE INCREASE

DUE TO WISE ADJUSTMENT
(per dwelling unit per month)
Effective Date Monthly Increase in
Standard Residential Rate
Monthly Increase in
Senior Residential Rate
July 1, 2026 $2.56 $2.23 July 1, 2027 $0.74 $0.64 July 1, 2028 $0.75 $0.65 July 1, 2029 2028 rate plus 2029 WISE adjustment
2028 rate plus 2029 WISE adjustment
July 1, 2030 2029 rate plus 2030 WISE
adjustment
2029 rate plus 2030 WISE adjustment
The WISE disposal adjustment is based on County contract disposal rates of $67.00/ton for 2026–27, $74.00/ton for 2027–28, $81.00/ton for 2028–29, and the prior year contract rate as adjusted by CPI under the WISE Agreement for 2029–30 and 2030–31. This WISE disposal adjustment applies only to the disposal-cost portion of the residential trash rate and does not apply to the collection portion of the rate or to the City administrative fee. The City will not retain revenue from these adjustments beyond the amount necessary to recover increased County landfill disposal costs attributable to residential service. Questions or comments regarding the proposed five-year rate adjustment schedule may be directed to the City of Fountain Valley Public Works Department at (714) 593-4441 or e-mailed to [email protected].

Attachment #4

CITY OF FOUNTAIN VALLEY
10200 Slater Avenue
Fountain Valley, CA 92708-4736
Resident
Billing Address
Fountain Valley, CA 92708

NOTICE OF PROPOSITION 218 PROTEST

HEARING REGARDING PROPOSED

RESIDENTIAL TRASH COLLECTION RATE

ADJUSTMENT
NOTICE IS HEREBY GIVEN that the Fountain Valley City Council will hold a public hearing on Tuesday, June 2, 2026, at 6:00 p.m., in the City Council Chambers, 10200 Slater Avenue, to consider a proposed increase in residential trash collection rates effective July 1, 2026, based on increased County landfill disposal fees under the City’s WISE Agreement with Orange County Waste & Recycling. The proposed residential rate adjustments would be:

Category Current Proposed
7/1/2026
Monthly
Increase
Method
Residential $32.27 $34.83 $2.56 Prior rate + WISE
adjustment
Senior Residential
$28.28 $30.51 $2.23 Prior rate + WISE
adjustment
WISE ADJUSTMENT: The amount of the proposed residential rate adjustment is determined by applying the percentage increase in the County contract landfill disposal rate under the WISE Agreement to the disposal portion of the monthly residential trash collection rate and the monthly senior residential trash collection rate, excluding the City administrative fee. The disposal portion of the monthly residential trash rate is 15.62% of the total monthly residential trash rate. NOTE: The 15.62% figure is not the rate increase; it is the disposal portion of the monthly residential trash rate used to calculate the July 1, 2026 WISE adjustment. Under Proposition 218, protests to the proposed rate adjustment must be delivered in writing to the City Clerk, City of Fountain Valley, 10200 Slater Avenue, Fountain Valley, CA 92708, prior to the conclusion of the Public Protest Hearing on June 2, 2026. Please include the Fountain Valley address of the affected property with any correspondence.

The WISE disposal adjustment is based on the 2026 to 2027 County contract disposal rate of $67.00 per ton. This WISE disposal adjustment applies only to the disposal-cost portion of the residential trash rate and does not apply to the collection portion of the rate or to the City administrative fee. The City will not retain revenue from this adjustment beyond the amount necessary to recover increased County landfill disposal costs attributable to residential service. Questions or comments regarding the proposed rate adjustment may be directed to the City of Fountain Valley Public Works Department at (714) 593-4441 or e-mailed to [email protected].

CITY OF FOUNTAIN VALLEY
10200 Slater Avenue
Fountain Valley, CA 92708-4736
Resident
Billing Address
Fountain Valley, CA 92708

Attachment 5
WISE Agreement Approval Status in Orange County (As of 3/27/2026)

JURISDICTION STATUS COUNCIL/BOARD DATE
Laguna Woods APPROVED 2/18/2026
Villa Park APPROVED 2/24/2026
Fullerton APPROVED 3/3/2026
Midway City Sanitary District (Westminster) APPROVED 3/3/2026 Rancho Santa Margarita APPROVED 3/11/2026
Dana Point APPROVED 3/17/2026
Tustin APPROVED 3/17/2026
Costa Mesa Sanitary District APPROVED 3/23/2026
Los Alamitos APPROVED 3/23/2026
Seal Beach APPROVED 3/23/2026
Anaheim APPROVED 3/24/2026
Laguna Beach APPROVED 3/24/2026
Laguna Hills APPROVED 3/24/2026
Mission Viejo APPROVED 3/24/2026
Newport Beach APPROVED 3/24/2026
Stanton APPROVED 3/24/2026
Aliso Viejo SCHEDULED 4/1/2026
La Habra SCHEDULED 4/6/2026
Costa Mesa SCHEDULED 4/7/2026
Fountain Valley SCHEDULED 4/7/2026
Lake Forest SCHEDULED 4/7/2026 OR 04/21/2026
La Palma SCHEDULED 4/7/2026
San Juan Capistrano SCHEDULED 4/7/2026
Buena Park SCHEDULED 4/14/2026
Garden Grove Sanitary District (Garden Grove) SCHEDULED 4/14/2026 OR 4/28/2026 Irvine SCHEDULED 4/14/2026
Brea SCHEDULED 4/21/2026
Yorba Linda SCHEDULED 4/21/2026
Laguna Niguel SCHEDULED 4/21/2026
Placentia SCHEDULED 4/21/2026
San Clemente SCHEDULED 4/21/2026
Santa Ana SCHEDULED 4/21/2026
Cypress SCHEDULED 4/28/2026
Orange SCHEDULED 4/28/2026
Huntington Beach PENDING TBD

RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOUNTAIN

VALLEY, CALIFORNIA, APPROVING THE WASTE INFRASTRUCTURE
SYSTEM ENTERPRISE (“WISE”) AGREEMENT WITH THE COUNTY OF ORANGE, AUTHORIZING MAILING OF PROPOSITION 218 NOTICE OF

PUBLIC PROTEST HEARING REGARDING A PROPOSED FIVE-YEAR

SCHEDULE OF RESIDENTIAL SOLID WASTE RATE ADJUSTMENTS, AND APPROVING THE CITY’S RESIDENTIAL RATE METHODOLOGY FOR

PURPOSES OF THE PROPOSED FIVE-YEAR SCHEDULE
WHEREAS, the City of Fountain Valley is considering whether to approve the Waste Infrastructure System Enterprise (“WISE”) Agreement with the County of Orange for municipal solid waste disposal and related services; and WHEREAS, the City Council is also considering whether to authorize mailing of Proposition 218 notice of public protest hearing regarding a proposed five-year schedule of residential solid waste rate adjustments beginning July 1, 2026; and WHEREAS, approval of the WISE Agreement does not itself approve any residential solid waste rate increase, and authorization to mail Proposition 218 notices does not itself approve any such rate increase, but only authorizes notice and scheduling of a future public protest hearing at which the City Council may later consider whether to approve the proposed schedule; and
WHEREAS, the proposed annual residential rate adjustments described in the Proposition 218 notice are based on a fixed disposal-component methodology under which, for each adjustment year, the percentage increase in the County contract landfill disposal rate under the WISE Agreement is applied to the fixed disposal portion of the monthly residential and senior residential solid waste rates, excluding the City administrative fee; and
WHEREAS, for purposes of the proposed five-year schedule described in the Proposition 218 notice, the disposal portion of the monthly residential and senior residential solid waste rate is fixed at 15.62% of the monthly rate, and that 15.62% figure is not the annual rate increase but is the fixed disposal portion used to calculate the annual WISE adjustment; and
Attachment #6

Resolution No. ____

WHEREAS, the proposed adjustments apply only to the disposal cost portion of the residential solid waste rate and do not apply to the collection portion of the rate or to the City administrative fee.

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

Section 1. The foregoing recitals are true and correct and are incorporated herein by this reference.

Section 2. Approval of WISE Agreement. The City Council hereby approves the WISE Agreement with the County of Orange, in substantially the form presented to the City Council, together with such non-substantive changes as may be approved by the City Manager and City Attorney.

Section 3. Separate Action on Proposed Rate Schedule. The City Council expressly finds that approval of the WISE Agreement is separate from, and does not itself constitute, approval of any residential solid waste rate increase.

Section 4. Authorization to Mail Proposition 218 Notice. City staff is hereby authorized and directed to mail Proposition 218 notice of public protest hearing regarding the proposed five-year schedule of residential solid waste rate adjustments for the period July 1, 2026 through June 30, 2031, in substantially the form presented to the City Council, together with such non-substantive changes as may be approved by the City Manager and City Attorney.

Section 5. Proposed Rate Methodology and Schedule Approved for Notice Purposes. For purposes of the proposed five-year schedule described in the Proposition 218 notice, the City Council hereby adopts the following residential rate methodology:
(a) For each adjustment year, the percentage adjustment to the monthly residential solid waste rate and the monthly senior residential solid waste rate shall equal the percentage increase in the County contract landfill disposal rate under the WISE Agreement from the immediately preceding year to the applicable adjustment year, applied to the fixed disposal portion of the monthly residential solid waste rate and the monthly senior residential solid waste rate, excluding the City administrative fee.

Resolution No. ____

(b) For purposes of the proposed five-year schedule described in the Proposition 218 notice, the disposal portion of the monthly residential solid waste rate and the monthly senior residential solid waste rate is fixed at 15.62% of the monthly rate. That

15.62% figure is not the annual rate increase; it is the fixed disposal portion used to calculate the annual WISE adjustment.
(c) This adjustment applies only to the disposal-cost portion of the residential solid waste rate and does not apply to the collection portion of the rate or to the City administrative fee.

Section 6. Scope of Proposed Schedule. The proposed five-year schedule described in the Proposition 218 notice is limited to the stepped County contract disposal-rate adjustments and CPI-based annual adjustments set forth in the WISE Agreement. The Proposition 218 notice also sets forth the initial proposed monthly residential and senior residential rates effective July 1, 2026, and the specific rate increases currently known for July 1, 2026, July 1, 2027, and July 1, 2028. Any future Contract Rate True-up or other non-CPI adjustment under the WISE Agreement shall be evaluated separately if and when it occurs.

Section 7. Effective Date. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at a regular meeting this 7th day of April, 2026.
______________________________
Jim Cunneen
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________
Rick Miller ________________________________
City Clerk Theresa A. Brennan
Harper & Burns LLP
Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 7, 2026
Members of the City Council
SUBJECT: Public Hearing and Introduction: Code Amendment No. 25-07 – An Amendment to the Warner/Newhope Specific Plan to Remove the Maximum 25% Medical Office Use Requirement From Planning Area C in Section 4.4.3 and to Permit Medical Office Use By-Right in Planning Area C During the Hours of 6:00 a.m. to 7:00 p.m., in the Plaza Del Lago (PDL) Office Building Located at 17220 Newhope Street
Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable

EXECUTIVE SUMMARY
The Plaza del Lago (PDL) professional center is a 2-story office development located adjacent to the Los Caballeros Sports Club at 17220 Newhope Street. The office development houses medical and professional uses within 54 condominium units that surround an artificial lake. The PDL development is just one of the diverse land uses within the 37.84-acre development officially called the Warner/Newhope Specific Plan (WNSP)(Specific Plan) that contains a mixture of uses including: the Los Caballeros Sports Club, owner and tenantoccupied residential units, warehousing, professional and medical offices, self-storage, and a special event center. Currently, the development regulations in the Specific Plan that apply to the PDL office building restrict the amount of square footage that can be permitted for medical office use in the entire building. The proposed code amendment would amend the Specific Plan to remove the regulation limiting medical office use in the planning area of the Specific Plan for the PDL professional center.

At the Planning Commission meeting of February 25, 2026, the Planning Commission voted 5-0 approving Resolution No. 26-03 recommending the City Council approve Code Amendment No. 25-07 (Attachment 1). Staff recommends the City Council conduct a public hearing and introduce the attached Ordinance, and approve Code Amendment No. 25-07 to remove the maximum 25% medical office use requirement from Planning Area C in Section

4.4.3 of the WNSP and to permit medical office use by-right in Planning Area C of the Specific Plan, during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago office building located

Code Amendment No. 25-07
April 7, 2026

at 17220 Newhope Street; and approve a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA).

DISCUSSION
Wallace Rodecker and the Plaza del Lago Owners Association have submitted an application to remove the maximum 25% medical office use requirement from Planning Area C in Section

4.4.3 of the WNSP and to permit medical office use by-right in Planning Area C of the Specific Plan during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago office building located at 17220 Newhope Street.

Background
The WNSP is an approximate 37-acre site located at 17272 Newhope Street, with the main entrance to the development accessible from the east side of Newhope Street, across from the Fountain Valley Post Office. The plan area contains a mixture of residential, recreational, office, light industrial, and storage uses, most of which share parking and access. The Specific Plan is divided into 12 Planning Areas that describe and provide use standards for each area.

The Los Caballeros (Los Cab) Sports Club is located in Planning Area A and is the main tenant in the Specific Plan. PDL was approved in 1979 for a 43,000 square foot, multi-tenant office complex, with no limitations on medical office use. Condition No. 10 from Planning Commission Resolution No. 79-32, did, however, place a restriction prohibiting retail uses in PDL. In 2004, the current Specific Plan was adopted by the City Council, and a 25% square footage limitation for medical office use was placed on the PDL office complex (Planning Area C), including the requirement for a Conditional Use Permit (CUP) subject to the review and approval of the Planning Commission.

In late 2025, and during the time the applicant prepared their application for the specific plan amendment, two (2) future tenants submitted CUP applications with the city and were approved by the Planning Commission for medical office uses in PDL:
 CUP 1938 #118 – T-Quan Acupuncture Clinic
 CUP 1939 #120 - ARWA Physical Therapy
With the addition of these two (2) tenants, the total percentage of medical office use in PDL increased to 23% - just below the 25% maximum outlined in the Specific Plan.

Code Requirement
PDL is located in Planning Area C of the WNSP as shown on the attached Land Use Plan from the Specific Plan. Allowable land uses are indicated in Section 4.4 of the Specific Plan, which also indicates uses permitted with approval of a CUP in Section 4.4.3.

4.4.3 Conditional Use Permit
 The following are permitted with approval of a Conditional Use Permit:
o Medical offices and services (clinics, offices, and laboratories) only in Planning Area C, with the approval of a parking study. A maximum of 25% of the building area may be devoted to medical offices.
o Schools, specialized training, and education.
o Photographic studios.

Code Amendment No. 25-07
April 7, 2026

o Automated teller machines (ATMs).
o Parking
o Telecommunication facilities per Section 21.28 of the Fountain Valley Municipal Code.

Proposed Code Amendment
The proposed Code Amendment (CA) (Attachment 2) would remove the maximum 25% limit on medical office uses in Plaza del Lago and would allow medical office by-right, during the hours of 6:00 a.m. to 7:00 p.m. in the PDL building. The amendment would also remove the requirement for a parking study in Planning Area C.

As proposed, Sections 4.4.1 and 4.4.3 of the Warner/Newhope Specific Plan would be amended as follows:
“…
Section 4.4.1 Permitted Uses
 Business support services
 Offices, administrative, business, professional.
 Research and Development (R&D).
 Personal storage (mini-storage) is a permitted use in Planning Area G.  Medical offices and services with operating hours between 6:00 a.m. and 7:00 p.m., seven (7) days per week.
…”
“…
Section 4.4.3 Conditional Use Permit
 The following are permitted with approval of a Conditional Use Permit:
o Medical offices and services (clinics, offices and laboratories) in Planning Area C with operating hours between 7:00 p.m. and 6:00 a.m., seven (7) days per week. only in Planning Area C with approval of a parking study. A maximum of 25% of the building area may be devoted to Medical offices. o Schools, specialized training, and education
o Photographic Studios
o Automated Teller Machines (ATMs).
o Parking.
o Telecommunications facilities per Section 21.28 of the Fountain Valley Municipal Code
…”
Analysis
The current request submitted by Wallace Rodecker and the Plaza del Lago Owners Association is to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner/Newhope Specific Plan and to permit medical office use by-right in Planning Area C of the Specific Plan during the hours of 6:00 a.m. to 7:00 p.m., in the PDL office building adjacent to the Los Caballeros Sports Complex.

The PDL property is a 2-story professional office complex consisting of two, 2-story buildings separated by a large decorative pond with a total of 54 office condominium suites, totaling 43,440 square feet. Pedestrian access to the units is achieved by an exterior walkway at the

Code Amendment No. 25-07
April 7, 2026

first and second stories of the buildings, which faces inward towards the decorative pond. The complex utilizes the shared parking in the Warner/Newhope Specific Plan, located in Planning Areas K and K-1, which is also shared by the Los Caballeros Sports Complex.

Given the unique nature of the site and the mixture of land uses, per the WNSP, the required parking is not based on the parking standards outlined in Chapter 21.22 of the Fountain Valley Municipal Code (FVMC), but instead upon the actual demand for parking. When the Specific Plan was created in 2004, a parking demand study was prepared to establish a baseline condition for parking use and demand in the Specific Plan area. The study indicated that 947 shared parking spaces were available in Planning Areas K, K-1, and I. The study also references 932 shared spaces available in Planning Area K and K-1 specifically. While not stated at the time of the Specific Plan adoption, staff’s understanding is that the 25% maximum for medical uses in PDL was based on the availability of shared spaces.

While individual parking ratios based on land use are not utilized in the Specific Plan’s parking analysis, the parking demand study references a parking requirement for PDL, whereas the required parking for medical office use was one (1) parking space per 143 square feet of floor space, and general office use was one (1) space per 250 square feet of floor space. Using these parking ratios to establish a parking requirement for PDL at the time of the Specific Plan approval in 2004, PDL would have required 206 parking spaces (Figure 1).

Figure 1
Square Footage (SF) Parking Ratio Spaces
25% Medical 10,860 SF 1 space per 143 SF 76
75% Office 32,580 SF 1 space per 250 SF 130
Total: 43,440 SF 206
If PDL were converted to 100% medical uses today at a parking ratio of one (1) space per 200 square feet using the current city parking requirements in Table 3-3 from FVMC 21.22, the entire development would require 217 parking spaces (Figure 2). This results in an increase of 11 parking spaces.

Figure 2
Square Footage (SF) Parking Ratio Spaces
100% Medical 43,440 SF 1 space per 200 SF 217
Previous Planning Commission Approvals - CUP 1900 Parking Analysis:

On February 9, 2022, the Planning Commission adopted Resolution No. 22-06 approving CUP 1900 for the conversion of an existing childcare center into nine (9) residential condominium units at Los Cab. A parking observation analysis was conducted on two (2) non-consecutive weekdays, and one (1) Saturday during the hours of 7:00 a.m. to 7:00 p.m., in September 2021. Referring to parking in Planning Area K and K-1 with 932 shared parking spaces, the maximum occupancy of the shared parking area observed during the weekday was 553 parking spaces. During the weekend, 482 was the highest observed demand. Conversely, the study concluded there was 379 spaces available during the weekday, and 482 spaces available during the weekend.

Code Amendment No. 25-07
April 7, 2026

CUP 1927 – Timeless Venues:

In 2024, Timeless Venues received approval for a wedding and event venue facility at the Los Caballeros Sports Village. At the time, it was stated that 996 shared parking spaces were provided at Los Cab, as noted in the staff report for CUP 1927. The parking analysis for Timeless Venues was based on a previous approval for a 9-unit condominium conversion project in 2022 for Los Cab, and approved by the Planning Commission (CUP 1900). This parking analysis referenced the 932 shared parking spaces in Planning Areas K and K-1, specifically, not 996 spaces.

Timeless Venues typically hold events such as weddings, charity galas, and other social events that may primarily take place during the evening and weekend, while typical medical office uses operate during daytime business hours. The proposed CA would approve medical occupancy by-right during the hours from 6:00 a.m. to 7:00 p.m. and would require a CUP to operate outside of those hours. Staff does not anticipate a conflict with medical office use during the daytime and a wedding and event facility primarily operating during the evening and weekends.

Using a conservative approach referencing the 932 shared parking spaces in Planning Area K and K-1, and the most recent parking analysis from CUP 1900 prepared in 2021, Figure 3 provides the following parking analysis below:

Figure 3
2021 Parking Analysis Weekday Weekend
Total Parking in Shared Areas per 2021 parking analysis: 932 932 Highest Number of Spaces Occupied: 553 482
Timeless Venues Parking Requirement per CUP 1927: 140 140 Additional Required Parking for 100% Medical Use in PDL 100% (Figure 2):
11 spaces 11 spaces
Available Parking Observed per 2021 parking analysis: 379 450 Surplus Parking in Shared Planning area K and K-1: 228 spaces 299 spaces Figure 3 provides a parking calculation using the least number of spaces reported in Planning Area K and K-1 at 932 shared parking spaces. The maximum observed parking spaces occupied per the 2021 parking analysis was used as a baseline condition, plus the maximum required parking spaces for Timeless Venues were used for a parking requirement per CUP 1927. Adding the additional 11 parking spaces required for PDL to be converted to 100% medical, an approximate surplus of parking is shown. Based on this calculation, approximately 228 parking spaces would be available during the weekdays, and 299 parking spaces would be available during the weekends.

PDL currently has 29 tenants controlling the 54 condominium office spaces, whereas several tenants control multiple units. According to the tenant roster provided for PDL, the office complex currently has limited vacancy with only five (5) single tenant spaces, and there currently is multiple general office practices occupying multiple condominium office spaces in PDL.

Code Amendment No. 25-07
April 7, 2026

As previously discussed, the Specific Plan requires that any new structures or expansions would be required to verify there is a minimum of 5% or 47 parking spaces open and available.

The Planning Commission recently approved two (2) projects where there was a different parking requirement than the previous use, and it was documented that there was sufficient parking available for the new use in the Los Cab sports complex. As shown in the calculation in Figure 3 of this report, a surplus of parking is estimated in the shared parking area of Planning Area K and K-1.

Conclusion
The proposed CA would remove the limitation of medical office use in Planning Area C of the Specific Plan, which was developed by the 2-story Plaza del Lago professional office condominium building. Staff recommends that the City Council conduct the public hearing and approve CA 25-07.

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 and the Fountain Valley Library.

ENVIRONMENTAL IMPACT REVIEW
The proposed CA is determined to be Categorically Exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines – Section 15061(b)(3) as it has no potential for resulting in a physical change to the environment. The proposed CA would allow for an increase in the type of existing, permitted land use, but does not propose the construction of any new square footage to the building (Attachment 3).

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

ALTERNATIVES
Alternative No. 1: Introduce the attached Ordinance approving a Notice of Exemption in accordance with the CEQA Guidelines approving Code Amendment No. 25-07 to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner/Newhope Specific Plan and to permit medical office use by-right in Planning Area C of the Specific Plan, during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago office building located at 17220 Newhope Street.

Alternative No. 2: Do not introduce the attached Ordinance approving a Notice of Exemption per the CEQA Guidelines and deny Code Amendment No. 25-07 to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner/Newhope Specific Plan and to permit medical office use by-right in Planning Area C of the Specific Plan, during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago office building located at 17220 Newhope Street.

Code Amendment No. 25-07
April 7, 2026

Alternative No. 3: Continue for further discussion.

RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1 to introduce the attached Ordinance approving a Notice of Exemption in accordance with the CEQA Guidelines and approving Code Amendment No. 25-07 to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner/Newhope Specific Plan and to permit medical office use by-right in Planning Area C of the Specific Plan, during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago office building located at 17220 Newhope Street.

Prepared By: Matt Jenkins, Senior Planner
Reviewed by: Steven Ayers, Principal Planner
Approved by: Omar Dadabhoy, Deputy City Manager/Community Development Director
Approved by: Maggie Le, City Manager
Attachments: 1. Planning Commission Staff Report

2. City Council Ordinance – Code Amendment 25-07

3. Notice of Exemption

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PUBLIC HEARINGS

2. CONDITIONAL USE PERMIT NO. 1940 – THE PICKLR
Petition submitted by Duyum Dulom to establish and operate a Pickleball facility located at 17904 Magnolia Street. This item is categorically exempt from CEQA per section 15301.

Recommended Action: Staff recommends that the Planning Commission adopt Alternative #1:

Adopt Resolution No. 26-05 adopting a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approving Conditional Use Permit No. 1940 to establish and operate a pickleball facility located at 17904 Magnolia Street.

3. CODE AMENDMENT (CA) NO. 25-07 – PLAZA DEL LAGO – MEDICAL OFFICE LIMITATION Petition submitted by Wallace Rodecker and the Plaza del Lago Owners Association to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner / Newhope Specific Plan and to permit medical office use by-right in Planning Area C of the Specific Plan during the hours of 7:00 a.m. to 6:00 p.m., in the Plaza del Lago office building located at 17220 Newhope Street. This item is exempt from CEQA per section 15061(b)(3) of the CEQA Guidelines as it has no potential for resulting in a physical change to the environment, directly or indirectly.

Recommended Action: Pleasure of the Planning Commission.

4. CODE AMENDMENT (CA) NO. 26-01 - BY-RIGHT APPLICATION PROCESS 20%

AFFORDABLE RESIDENTIAL PROJECTS
A CA to amend Fountain Valley Municipal Code Sections 21.08.030, 21.15.030, and 21.90.020, and add Section 21.46.120 to permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households. The item is exempt from CEQA per Sections 15060(c)(2) and 15060(c)(3).

Recommended Action: Staff recommends that the Planning Commission adopt Alternative #1:

Adopt Resolution No. 26-01 recommending the City Council adopt a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approve Code Amendment No. 26-01 to amend the Fountain Valley Municipal Code (FVMC) Sections

21.08.030, 21.15.030, and 21.90.020, and add section 21.46.120 to permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households.

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Vicinity Map
CA 25-07
Plaza del Lago
17220 Newhope Street

Request for
Planning Commission Action
TO: Planning Commission DATE: February 25, 2026
FROM: Senior Planner, Matt Jenkins
SUBJECT: Code Amendment No. 25-07 – Plaza del Lago Medical Office Limitation Project Location: Plaza del Lago
17220 Newhope Street
Fountain Valley, CA
APN: 169-421-11
Project Applicant: Wallace Rodecker / Rodecker Family Trust / Rodecker Companies, LLC.

Project Representative: Jim Henshall – CFG Investments, Inc.

Zoning: Warner Newhope Specific Plan
General Plan: Specific Plan Area
Proposal:

Petition submitted by Wallace Rodecker and the Plaza del Lago Owners Association to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner / Newhope Specific Plan and to permit medical office use byright in Planning Area C of the Specific Plan during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago (PDL) office building located at 17220 Newhope Street (Attachment 1).

Background:

The Warner/Newhope Specific Plan (WNSP) is an approximate 37-acre site located at 17272 Newhope Street, with the main entrance to the development accessible from the east side of Newhope Street, across from the Fountain Valley Post Office. The plan area contains a mixture of residential, recreational, office, light industrial, and storage uses, most of which share parking and access. The WNSP is divided into 12 Planning Areas that describe and provide use standards for each area (Attachment 2). The Los Caballeros (Los Cab) Sports Club is located in Planning Area A and is the main tenant in

Planning Commission Action – CA 25-07 Plaza Del Lago
February 25, 2026

the Specific Plan. PDL, located in Planning Area C, was approved in 1979 for a 43,000 square foot, multi-tenant office complex, with no limitations on medical office use.

Condition No. 10 from Planning Commission Resolution No. 79-32, did however, place a restriction prohibiting retail uses in PDL. In 2004, the current Specific Plan was adopted by the City Council and a 25% square footage limitation for medical office use was placed on the PDL office complex (Planning Area C), including the requirement for a Conditional Use Permit (CUP) subject to the review and approval of the Planning Commission.

In late 2025, and during the time the applicant prepared their application for the specific plan amendment, two (2) future tenants submitted CUP applications with the city and were approved by the Planning Commission for medical office uses in PDL:
 CUP 1938 #118 – T-Quan Acupuncture Clinic
 CUP 1939 #120 - ARWA Physical Therapy
With the addition of these two (2) tenants, the total percentage of medical office use in PDL increased to 23% - just below the 25% maximum outlined in the Specific Plan.

Code Requirement:

PDL is located in Planning Area C of the WNSP as shown on the attached Land Use Plan from the Specific Plan (Attachment 2). Allowable land uses are indicated in Section 4.4 of the Specific Plan, which also indicates uses permitted with approval of a CUP in Section

4.4.3. 4.4.3 Conditional Use Permit
 The following are permitted with approval of a Conditional Use Permit:
o Medical offices and services (clinics, offices and laboratories) only in Planning Area C with the approval of a parking study. A maximum of 25% of the building area may be devoted to medical offices. o Schools, specialized training and education.
o Photographic studios.
o Automated teller machines (ATMs).
o Parking
o Telecommunication facilities per Section 21.28 of the Fountain Valley Municipal Code.

Proposed Code Amendment:

The proposed Code Amendment (CA) (Attachment 3) would remove the maximum 25% limit on medical office uses in Plaza del Lago and would allow medical office by-right, during the hours of 6:00 a.m. to 7:00 p.m. in the PDL building. The amendment would also remove the requirement for a parking study in Planning Area C.

Planning Commission Action – CA 25-07 Plaza Del Lago
February 25, 2026

As proposed, the Warner/Newope Specific Plan would be amended as follows:
“…
Section 4.4.1 Permitted Uses
 Business support services
 Offices, administrative, business, professional.
 Research and Development (R&D).
 Personal storage (mini-storage) is a permitted use in Planning Area G.  Medical offices and services with operating hours between 6:00 a.m. and 7:00 p.m., seven (7) days per week.
…”
“…
Section 4.4.3 Conditional Use Permit
 The following are permitted with approval of a Conditional Use Permit:
o Medical offices and services (clinics, offices and laboratories) in Planning Area C with operating hours between 7:00 p.m. and 6:00 a.m., seven (7) days per week. Only in Planning Area C with approval of a parking study. A maximum of 25% of the building area may be devoted to medical offices. o Schools, specialized training, and education
o Photographic Studios
o Automated Teller Machines (ATMs).
o Parking.
o Telecommunications facilities per Section 21.28 of the Fountain Valley Municipal Code
…”
Discussion:

The current request submitted by Wallace Rodecker and the Plaza del Lago Owners Association is to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner/Newhope Specific Plan and to permit medical office use by-right in Planning Area C of the Specific Plan during the hours of 6:00 a.m. to 7:00 p.m., in the PDL office building adjacent to the Los Caballeros Sports Complex (Attachment 4). The applicant originally requested the hours to operate from 7:00 a.m. to 6:00 p.m., but recently amended the request (Attachment 5).

The PDL property is a 2-story professional office complex consisting of two, 2-story buildings separated by a large decorative pond with a total of 54 office condominium suites, totaling 43,440 square feet. Pedestrian access to the units is achieved by an exterior walkway at the first and second stories of the buildings, which faces inward towards the decorative pond. The complex utilizes the shared parking in the

Planning Commission Action – CA 25-07 Plaza Del Lago
February 25, 2026

Warner/Newhope Specific Plan, located in Planning Areas K and K-1, which is also shared by the Los Caballeros Sports Complex (Attachment 6).

Given the unique nature of the site and the mixture of land uses, per the WNSP, the required parking is not based on the parking standards outlined in Chapter 21.22 of the Fountain Valley Municipal Code (FVMC), but instead upon the actual demand for parking.

When the Specific Plan was created in 2004, a parking demand study was prepared to establish a baseline condition for parking use and demand in the Specific Plan area. The study indicated there were 947 shared parking spaces available in Planning Area K, K-1, and I. The study also references 932 shared spaces available in Planning Area K and K-1 specifically. While not stated at the time of the Specific Plan adoption, staff’s understanding is that the 25% maximum for medical uses in PDL was based on the availability of shared spaces.

While individual parking ratios based on land use are not utilized in the Specific Plan’s parking analysis, the parking demand study references a parking requirement for PDL, whereas the required parking for medical office use was one (1) parking space per 143 square feet of floor space, and general office use was one (1) space per 250 square feet of floor space. Using these parking ratios to establish a parking requirement for PDL at the time of the Specific Plan approval in 2004, PDL would have required 206 parking spaces (Figure 1).

Figure 1
Square Footage (SF) Parking Ratio Spaces
25% Medical 10,860 SF 1 space per 143 SF 76
75% Office 32,580 SF 1 space per 250 SF 130
Total: 43,440 SF 206
If PDL was converted to 100% medical uses today at a parking ratio of one (1) space per 200 square feet using the city parking requirements in Table 3-3 from FVMC 21.22, the entire development would require 217 parking spaces (Figure 2). This results in an increase of 11 parking spaces.

Figure 2
Square Footage (SF) Parking Ratio Spaces
100% Medical 43,440 SF 1 space per 200 SF 217
Previous Planning Commission Approvals - CUP 1900 Parking Analysis:

On February 9, 2022, the Planning Commission adopted Resolution No. 22-06 approving CUP 1900 for the conversion of an existing childcare center into nine (9) residential condominium units at Los Cab. A parking observation analysis was conducted on two (2) non-consecutive weekdays, and one (1) Saturday during the hours of 7:00 a.m. to 7:00 p.m., in September 2021 (Attachment 7). Referring to parking in Planning Area K and K1 with 932 shared parking spaces, the maximum occupancy of the shared parking area

Planning Commission Action – CA 25-07 Plaza Del Lago
February 25, 2026

observed during the weekday was 553 parking spaces. During the weekend, 482 was the highest observed demand. Conversely, the study concluded there was 379 spaces available during the weekday, and 482 spaces available during the weekend.

CUP 1927 – Timeless Venues:

In 2024, Timeless Venues received approval for a wedding and event venue facility at the Los Caballeros Sports Village. At the time it was indicated 996 shared parking spaces were provided at Los Cab as indicated in the staff report for CUP 1927. The parking analysis for Timeless Venues was based on a previous approval for a 9-unit condominium conversion project in 2022 for Los Cab and approved by the Planning Commission (CUP 1900). This parking analysis (Attachment 7) references the 932 shared parking spaces in Planning Areas K and K-1, specifically, not 996 spaces.

Timeless Venues typically holds events such as weddings, charity galas, and other social events that may primarily take place during the evening and weekend times, while typical medical office uses operate during daytime business hours. The proposed CA would approve medical occupancy by-right during the hours from 6:00 a.m. to 7:00 p.m. and would require a CUP to operate outside of those hours. Staff does not anticipate a conflict with medical office use during the daytime and a wedding and event facility primarily operating during the evening and weekends.

Using a conservative approach referencing the 932 shared parking spaces in Planning Area K and K-1, and the most recent parking analysis from CUP 1900 in prepared in 2021, Figure 3 provides the following parking analysis below:

Figure 3
Attachment ___(2021 Parking Analysis) Weekday Weekend
Total Parking in Shared Areas per 2021 parking analysis: 932 932 Highest Number of Spaces Occupied: 553 482
Timeless Venues Parking Requirement per CUP 1927: 140 140 Additional Required Parking for 100% Medical Use in
PDL 100% (Figure 2):
11 spaces 11 spaces
Available Parking Observed per 2021 parking analysis: 379 450 Surplus Parking in Shared Planning area K and K-1: 228 spaces 299 spaces Figure 3 provides a parking calculation using the least number of spaces reported in Planning Area K and K-1 at 932 shared parking spaces. The maximum observed parking spaces occupied per the 2021 parking analysis was used as a baseline condition, plus the maximum required parking spaces for Timeless Venues was used for a parking requirement per CUP 1927. Adding the additional 11 parking spaces required for PDL to be converted to 100% medical, an approximate surplus of parking is shown. Based on this calculation, approximately 228 parking spaces would be available during the weekday, and 299 parking spaces would be available during the weekend.

Planning Commission Action – CA 25-07 Plaza Del Lago
February 25, 2026

Conclusion:

PDL currently has 29 tenants controlling the 54 condominium office spaces, whereas several tenants control multiple units. According the to the tenant roster provided for PDL, the office complex currently has limited vacancy with only five (5) single tenant spaces, and there currently is multiple general office practices occupying multiple condominium office spaces in PDL.

As previously discussed, the Specific Plan requires that any new structures or expansions would be required to verify there is a minimum of 5% or 47 parking spaces open and available. The Planning Commission recently approved two projects where there was a different parking requirement than the previous use, and it was documented that there was sufficient parking available for the new use in the Los Cab sports complex. As shown in the calculation in Figure 3 of this report, a surplus of parking is estimated in the shared parking area of Planning Area K and K-1.

Environmental Clearance:

The proposed CA is determined to be Categorically Exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines – Section 15061(b)(3) as it has no potential for resulting in a physical change to the environment. The proposed CA would allow for an increase in the type of existing, permitted land use, but does not propose the construction of any new square footage to the building (Attachment 8).

Notice Furnished:

Public hearing notices were mailed to all property owners and commercial tenants within 1,000 feet of the subject property. The item was published in the Orange County Register and notices were posted at City Hall and at the City’s website at www.fountainvalley.gov/AgendaCenter
Alternatives:

1. Adopt Resolution No. 26-03 recommending the City Council approve a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approve Code Amendment No. 25-07 to remove the maximum 25% medical office use requirement from Planning Area C in Section 4.4.3 of the Warner/Newhope Specific Plan and to permit medical office use by-right in Planning Area C of the Specific Plan, during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago office building located at 17220 Newhope Street (Attachment 9).

2. Amend Resolution No. 26-03 and recommend the City Council approve a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA) and approve Code Amendment No. 25-07 to increase the maximum percentage

Planning Commission Action – CA 25-07 Plaza Del Lago
February 25, 2026

of medical office use in Planning Area C in Section 4.4.3 of the Warner/Newhope Specific Plan from 25% to 50%, during the hours of 6:00 a.m. to 7:00 p.m., in the Plaza del Lago office building located at 17220 Newhope Street.

3. Continue the request and direct staff to prepare a resolution for denial.

4. Continue this request for additional information.

Recommended Action:

Pleasure of the Planning Commission.

Prepared By: Matt Jenkins, Senior Planner
Reviewed By: Steven Ayers, Principal Planner
Approved By: Omar Dadabhoy, Community Development Director / Deputy City Manager
Attachments: 1. Vicinity Map

2. WNSP Land Use Map

3. CC Ordinance

4. CFG Investments request

5. Amended hours

6. WNSP Parking Graphic

7. Parking Analysis dated October 2, 2021

8. Notice of Exemption

9. Resolution No. 26-03

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. 25-07 TO REMOVE THE MAXIMUM 25% MEDICAL OFFICE USE REQUIREMENT FROM PLANNING AREA C IN SECTION 4.4.3 OF

THE WARNER / NEWHOPE SPECIFIC PLAN AND TO PERMIT MEDICAL

OFFICE USE BY-RIGHT IN PLANNING AREA C OF THE SPECIFIC PLAN DURING THE HOURS OF 6:00 A.M. TO 7:00 P.M., IN THE PLAZA DEL LAGO OFFICE BUIILDING LOCATED AT 17220 NEWHOPE STREET
WHEREAS, the Warner/Newhope Specific Plan (“Specific Plan”) was approved by the Fountain Valley City Council on October 5, 2004; and
WHEREAS, the Specific Plan contains development standards and intensities for individual planning areas; and
WHEREAS, the proposed amendment will continue to promote the development of the Specific Plan area in a manner that is sensitive to the surrounding community and environment; and
WHEREAS, the Planning Commission has reviewed and approved two (2) new land uses in the Specific Plan area since 2022; and
WHERAS, staff analyzed the parking requirements at that time and a surplus of available shared parking spaces were available in the Specific Plan area; and WHEREAS, the proposed CA 25-07 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and
WHEREAS, the Fountain Valley Planning Commission considered the proposed Code Amendment No. 25-07 at a duly noticed public hearing on February 25, 2026, and by a vote of _-_ recommended the City Council approve CA 25-07 ; and

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 25-07 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

CA 25-07 – Plaza del Lago

question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 2
The City Council finds that due notice of the public hearing on ______, 2026, 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
The Warner/Newope Specific Plan shall be amended as follows:
“…
Section 4.4.1 Permitted Uses
 Business support services
 Offices, administrative, business, professional.
 Research and Development (R&D).
 Personal storage (mini-storage) is a permitted use in Planning Area G.  Medical offices and services with operating hours between 6:00 a.m. and 7:00 p.m., seven (7) days per week.
…”
“…
Section 4.4.3 Conditional Use Permit
 The following are permitted with approval of a Conditional Use Permit:
o Medical offices and services (clinics, offices and laboratories) in Planning Area C with operating hours between 7:00 p.m. and 6:00 a.m., seven (7) days per week. only in Planning Area C with approval of a parking study. A maximum of 25% of the building area may be devoted to medical offices. o Schools, specialized training, and education
o Photographic Studios
o Automated Teller Machines (ATMs).
o Parking.
o Telecommunications facilities per Section 21.28 of the Fountain Valley Municipal Code
…”
SECTION 4

CA 25-07 – Plaza del Lago

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 the goals and actions of the general plan and specific plan. The amendment will promote General Plan Goal LU-1, which is to allow an arrangement of compatible land uses, while protecting and maintaining the surrounding neighborhood.

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

The proposed amendment will allow for additional medical office use in the existing Plaza de Lago office building in the Warner/Newhope Specific Plan area, which allows for a variety of office uses in the existing 2-story office building. As indicated in the staff report, sufficient parking will be available for future medical office uses in the Plaza del Lago office complex, therefore the CA should not be detrimental to the interests of the public

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 indicated in Section 1 above.

4. The proposed amendment is internally consistent with other applicable provisions of Title 21 and the Warner / Newhope Specific Plan.

Removing the 25% square footage limitation on the medical office uses in Planning Area C will not affect any other development standard in the Specific Plan. The parking requirement is specific to Section 4.4.3 of the Specific Plan only and does not need to be amended in any other location in the Specific Plan.

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

SECTION 6
The City Clerk shall certify 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.

CA 25-07 – Plaza del Lago

PASSED, APPROVED AND ADOPTED THIS DAY OF , 2026.

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM

HARPER & BURNS LLP
___________________________
Attorneys for the City

CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders.

From: Jim Henshall
To: Matt Jenkins
Cc: Wallace Rodecker; Steve Meyer; Carm Gullo
Subject: RE: Notice of Hearing Before Planning Commission-2-25-26 Date: Thursday, February 12, 2026 4:48:48 PM
Attachments: image001.png
image002.png
image003.png
Matt,
Thank you for your email.

As to Section 4.4.3 Conditional Use Permit, the language will need to be as follows:

Section 4.4.3 Conditional Use Permit
The following are permitted with approval of a Conditional Use Permit:

Medical offices and services (clinics, offices and laboratories) in Planning Area C with operating hours between 6:00 a.m. and 7:00 p.m., seven (7) days per week. only in Planning Area C with approval of a parking study. A maximum of 25% of the building area may be devoted to medical offices.

Schools, specialized training, and education
Photographic Studios
Automated Teller Machines (ATMs).

Parking.

Telecommunications facilities per Section 21.28 of the Fountain Valley Municipal Code Let me know your thoughts on the language. I am in the office all day tomorrow.

Best regards,
Jim Henshall
CFG Investments, Inc., property management company for the Plaza del Lago Owners Association 17220 Newhope Street, Suite 224
Fountain Valley, CA 92708
(714) 557-1430 (Office)
(714) 227-4427 (Cell)
[email protected] (Email)

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

RESOLUTION NO. 26-03

A RESOLUTION OF THE FOUNTAIN VALLEY PLANNING COMMISSION

ADOPTING A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT AND RECOMMENDING
THE CITY COUNCIL APPROVE CODE AMENDMENT NO. 25-07 TO
REMOVE THE MAXIMUM 25% MEDICAL OFFICE USE REQUIREMENT
FROM PLANNING AREA C IN SECTION 4.4.3 OF THE WARNER /

NEWHOPE SPECIFIC PLAN AND TO PERMIT MEDICAL OFFICE USE

BY-RIGHT IN PLANNING AREA C OF THE SPECIFIC PLAN DURING THE HOURS OF 6:00 A.M. TO 7:00 P.M., IN THE PLAZA DEL LAGO OFFICE BUIILDING LOCATED AT 17220 NEWHOPE STREET
WHEREAS, the Warner/Newhope Specific Plan (“Specific Plan”)(“WNSP”) was approved by the Fountain Valley City Council on October 5, 2004; and WHEREAS, the Specific Plan contains development standards and intensities for individual planning areas; and
WHEREAS, an application for a Code Amendment (CA) to the Warner/Newhope Specific Plan was submitted by Wallace Rodecker and the Plaza del Lago Owners Association in accordance with Municipal Code, Title 21 and Chapter 4.4.3 of the Warner/Newhope Specific Plan and
WHEREAS, the proposed amendment will continue to promote the development of the Specific Plan area in a manner that is sensitive to the surrounding community and environment; and
WHEREAS, the proposed CA 25-07 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and
WHEREAS, the Fountain Valley Planning Commission considered said application at its noticed public hearing on February 25, 2026; and

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

SECTION 1
The Planning Commission hereby determines that CA No. 25-07 is not subject to review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) as it has no potential for resulting in a physical change to the environment, directly or indirectly.

SECTION 2
The Planning Commission finds that due notice of the public hearing on February 25, 2026, 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

Resolution No. 26-03

of this hearing and a copy of the Planning Commission agenda were posted at City Hall, and at the City’s website at www.fountainvalley.gov/AgendaCenter SECTION 3
Pursuant to Fountain Valley Municipal Code section 21.34.050 the Planning Commission 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 the goals and actions of the general plan and specific plan. The amendment will promote General Plan Goal LU-1, which is to allow an arrangement of compatible land uses, while protecting and maintaining the surrounding neighborhood. Medical office use is currently permitted in Planning Area C of the WNSP up to 25 %, and the amendment will allow for additional medical office use in Planning Area C of the WNSP up to 100%, during the hours of 6:00 a.m. and 7:00 p.m., seven (7) days per week.

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

The proposed amendment will allow for additional medical office use in the existing Plaza de Lago office building in the WNSP area, which allows for a variety of office uses in the existing 2-story office building. As indicated in the staff report, sufficient parking will be available for future medical office uses in the Plaza del Lago office complex, therefore the CA should not be detrimental to the interests of the public. Section 3.2.3 Required Parking of the WNSP requires any new structure or expansion to existing structures in the Specific Plan is required to verify a minimum of 5% of the shared parking is a available. As indicated in the staff report, there would be a an estimated 228 parking spaces available in the shared parking areas during the weekday, and 299 shared spaces available during the weekend.

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 indicated in Section 1 above.

4. The proposed amendment is internally consistent with other applicable provisions of Title 21 and the Warner / Newhope Specific Plan.

Removing the 25% square footage limitation on the medical office uses in Planning Area C will not affect any other development standard in the Specific Plan. The parking requirement is specific to Section 4.4.3 of the Specific Plan only and does not need to be amended in any other location in the Specific Plan.

SECTION 4
The Planning Commission finds that Code Amendment 25-07 is consistent with the Fountain Valley Municipal Code, as well as the Fountain valley General Plan, and Warner / Newhope

Resolution No. 26-03

Specific Plan, and recommends the City Council approve Code Amendment No. 25-07 as set forth in “Exhibit A” attached hereto and incorporated herein.

PASSED, APPROVED AND ADOPTED THIS 25th DAY OF FEBRUARY 2026. ________________________ ________________________
Chairperson Secretary

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

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. 25-07 TO REMOVE THE MAXIMUM 25% MEDICAL OFFICE USE REQUIREMENT FROM PLANNING AREA C IN SECTION 4.4.3 OF

THE WARNER / NEWHOPE SPECIFIC PLAN AND TO PERMIT MEDICAL

OFFICE USE BY-RIGHT IN PLANNING AREA C OF THE SPECIFIC PLAN DURING THE HOURS OF 6:00 A.M. TO 7:00 P.M., IN THE PLAZA DEL LAGO OFFICE BUILDING LOCATED AT 17220 NEWHOPE STREET
WHEREAS, the Warner/Newhope Specific Plan (“WNSP”)(“Specific Plan”) was approved by the Fountain Valley City Council on October 5, 2004; and WHEREAS, the Specific Plan contains development standards and intensities for individual planning areas; and
WHEREAS, the proposed amendment will continue to promote the development of the Specific Plan area in a manner that is sensitive to the surrounding community and environment; and
WHEREAS, on February 9, 2022, the Planning Commission approved a Conditional Use Permit (CUP 1900) for nine (9) additional residential condominium units in the Specific Plan; and WHEREAS, staff analyzed the parking requirements at that time and a surplus of shared parking spaces were available in the Specific Plan area; and WHEREAS, on May 22, 2025, the Planning Commission approved CUP 1927 for a wedding and event facility at the Los Caballeros Sports Village in the Specific Plan Area and determined a surplus of parking was provided in Planning Area K and K-1 of the WNSP; and WHEREAS, removing the 25% limitation for medical office square footage in the Plaza del Lago (PDL) building and allowing for 100% medical office use in PDL would require an additional 11 parking spaces over non-medical office space; and
WHEREAS, the parking analysis performed in 2021 for CUP 1900 indicated a surplus of available shared parking in Planning Area K and K-1, and WHEREAS, the proposed CA 25-07 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code; and
WHEREAS, the Fountain Valley Planning Commission considered the proposed Code Amendment No. 25-07 at a duly noticed public hearing on February 25, 2026, and by a vote of 5-0, recommended the City Council approve CA 25-07.

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

CA 25-07 – Plaza del Lago

SECTION 1
The City Council hereby determines that CA 25-07 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.

SECTION 2
The City Council finds that due notice of the public hearing on April 7, 2026, 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
The Warner/Newhope Specific Plan shall be amended as follows:
“…
Section 4.4.1 Permitted Uses
 Business support services
 Offices, administrative, business, professional.
 Research and Development (R&D).
 Personal storage (mini-storage) is a permitted use in Planning Area G.  Medical offices and services with operating hours between 6:00 a.m. and 7:00 p.m., seven (7) days per week.
…”
“…
Section 4.4.3 Conditional Use Permit
 The following are permitted with approval of a Conditional Use Permit:
o Medical offices and services (clinics, offices and laboratories) in Planning Area C with operating hours between 7:00 p.m. and 6:00 a.m., seven (7) days per week. only in Planning Area C with approval of a parking study. A maximum of 25% of the building area may be devoted to Medical offices. o Schools, specialized training, and education
o Photographic Studios
o Automated Teller Machines (ATMs).
o Parking.
o Telecommunications facilities per Section 21.28 of the Fountain Valley Municipal Code
…”

CA 25-07 – Plaza del Lago

SECTION 4
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 the goals and actions of the general plan and specific plan. The amendment will promote General Plan Goal LU-1, which is to allow an arrangement of compatible land uses, while protecting and maintaining the surrounding neighborhood.

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

The proposed amendment will allow for additional medical office use in the existing Plaza del Lago office building in the Warner/Newhope Specific Plan area, which allows for a variety of office uses in the existing 2-story office building. As indicated in the staff report, sufficient parking will be available for future medical office uses in the Plaza del Lago office complex, therefore the CA should not be detrimental to the interests of the public

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 indicated in Section 1 above.

4. The proposed amendment is internally consistent with other applicable provisions of Title 21 and the Warner / Newhope Specific Plan.

Removing the 25% square footage limitation on the medical office uses in Planning Area C will not affect any other development standard in the Specific Plan. The parking requirement is specific to Section 4.4.3 of the Specific Plan only and does not need to be amended in any other location in the Specific Plan.

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

CA 25-07 – Plaza del Lago

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

PASSED, APPROVED AND ADOPTED THIS DAY OF , 2026.

ATTEST:

City Clerk Mayor

APPROVED AS TO FORM
HARPER & BURNS LLP ___________________________ Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 7, 2026
Members of the City Council
SUBJECT: Public Hearing and Introduction: Code Amendment No. 26-01 – An Amendment To Fountain Valley Municipal Code (FVMC) Sections 21.08.030,

21.15.030, and 21.90.020, And Add Section 21.46.120 To Permit OwnerOccupied And Rental Multi-Family Uses By Right For Projects With 20% Or More Units Affordable To Lower Income Households
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 October 7, 2025, the city received a letter from the California Department of Housing and Community Development (“HCD”) regarding the City’s implementation of its adopted and approved Housing Element – specifically Program 1a: Rezone to Accommodate Regional Housing Needs Allocation (RHNA) (Attachment #1). Program 1a of the Housing Element, as well as state law, stipulates that the City shall permit owner-occupied and rental multi-family uses by-right for projects with 20% or more units affordable to lower-income households.

The attached Ordinance incorporates changes noted by HCD in the letter dated October 7, 2025 (Attachment #2).

At the Planning Commission meeting of February 25, 2026, the Planning Commission voted 5-0 approving Resolution No. 26-01 recommending the City Council approve Code Amendment No. 26-01.

Staff recommends the City Council conduct a public hearing and introduce the attached Ordinance approving Code Amendment No. 26-01 to amend Fountain Valley Municipal Code (FVMC) Sections 21.08.030, 21.15.030, and 21.90.020, and add Section 21.46.120 to permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households.

DISCUSSION
On October 7, 2025, the City received a letter from the Department of Housing and Community Development (“HCD”) regarding the City’s implementation of its adopted and approved Housing Element – specifically Program 1a: Rezone to Accommodate RHNA. The letter also notes Program 1e: Alternative Housing Sites to Rezone Sites to Accommodate the RHNA, but in later discussions, HCD is only looking for compliance with Program 1a at this time.

Code Amendment No. 26-01 20% Affordable By-Right Ordinance April 7, 2026

State law [California Government Code 65583.2(h) and (i)] requires that projects identified in the Housing Element be zoned to permit owner-occupied and rental multifamily residential use by right for developments in which at least 20% of the units are affordable to lowerincome households during the planning period. Program 1a of the Housing Element stipulates that the City shall permit owner-occupied and rental multi-family uses by-right for projects with 20% or more units affordable to lower-income households.

This change, which is already specifically provided for in state law, requires the city to process applications administratively for residential projects in which 20% of the units will be deedrestricted as affordable. The administrative review precludes any requirements from public hearings before the Planning Commission and City Council. A developer could develop one of the sites listed in Table H-22 of the 2021-2029 Housing Element (below), (geographic location provided in Figure H-1) by right if they propose a minimum of 20% of the units in the development as affordable to lower-income households. The amendment would apply to only the sites listed in Table H-22 that are spread over residential zones, as well as Specific Plan Areas, including the Crossings, Warner/Newhope, and Southpark Specific Plan Areas.

Code Amendment No. 26-01 20% Affordable By-Right Ordinance April 7, 2026

The requirement to process applications administratively without any discretionary review has long been a part of the State’s Policies and Goals. Similar to other cities, Fountain Valley is developing Objective Design Standards that any residential project (regardless of the review process) would have to meet. These design standards are scheduled to be presented before the Planning Commission in April of this year.

The amendment also includes definitions to help clarify the meaning of ‘by right’, ‘permitted use’, ‘discretionary’, and ‘ministerial.’ Essentially, by right, uses are allowed without discretionary review or approval. By right uses are allowed in a zoning district subject to the restrictions applicable to the zoning district and may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. The by-right approval process may also be referred to as a ministerial approval process, where the review of a project is based upon fixed/mandatory standards (height, setbacks, FAR, lot coverage, etc.) and does not involve the use of personal judgment. These projects would be discretionary and would not require the approval of findings, public notice, public hearings, inclusion of conditions of approval or mitigation measures, the decision of an appointed and/or elected body, nor the opportunity to appeal.

Lastly, as noted above, the amendment would address permitted uses in Specific Plan Areas and address the proposed change in permitted projects with 20% affordable in Specific Plans as Table H-22 of the 2021-2029 Housing Element.

State Review
State HCD has reviewed the proposed Ordinance and ensures that it meets the intent of the letter sent to the city on October 7, 2025.

Code Amendment No. 26-01 20% Affordable By-Right Ordinance April 7, 2026

Planning Commission
At the Planning Commission meeting of February 25, 2026, the Planning Commission voted 5-0 approving Resolution No. 26-01 recommending the City Council approve Code Amendment No. 26-01.

FISCAL REVIEW
There is no financial impact associated with approving the proposed code amendment. This Ordinance will simply implement Program 1a of the City’s approved Housing Element and provide consistency with state law.

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
Adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) under Sections 15060(c)(2)(the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. The amendment is merely a text amendment to the FVMC as required by Program 1a of the 2021-2029 Housing Element and California Government Code 65583.2(h) and (i) to permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower-income households. Moreover, for purposes of this section and Section 65583, the phrase “use by right” shall mean that the local government’s review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that “use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. (Attachment #3).

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

ALTERNATIVES
Alternative No. 1: Introduce the attached Ordinance approving a categorical exemption per the California Environmental Quality Act (CEQA) and approving Code Amendment No. 26-01 to amend Fountain Valley Municipal Code (FVMC) Sections 21.08.030, 21.15.030, and 21.90.020, and add Section 21.46.120 to permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households.

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. 26-01 to amend Fountain Valley Municipal Code (FVMC) Sections 21.08.030, 21.15.030, and

Code Amendment No. 26-01 20% Affordable By-Right Ordinance April 7, 2026

21.90.020, and add Section 21.46.120 to permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households.

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. 26-01 to amend Fountain Valley Municipal Code (FVMC) Sections 21.08.030, 21.15.030, and 21.90.020, and add Section 21.46.120 to permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households.

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

1. HCD Letter dated October 7, 2025

2. Proposed Ordinance for Code Amendment No. 26-01

3. Notice of Exemption

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Ste. 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
October 7, 2025
Omar Dadabhoy, Community Development Director
Planning Division
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
RE: City of Fountain Valley Rezone Implementation – Letter of Technical Assistance
Dear Omar Dadabhoy:

The purpose of this letter is to provide technical assistance regarding the City’s implementation of its adopted and approved Housing Element, specifically Program 1a: Rezone to Accommodate Regional Housing Needs Allocation (RHNA) and Program 1e: Alternative Housing Sites to Rezone Sites to Accommodate the RHNA pursuant to Government Code section 65583.2, subdivision (c).

On January 29, 2025, the City sent the California Department of Housing and Community Development (HCD) copies of ordinances to fulfill the obligations of housing element Program 1a and Program 1e. On April 14, 2025, the City met with HCD to discuss the requirement to execute Program 1a and 1e rezoning to include sites zoned to permit owner-occupied and rental multifamily residential use by-right for developments in which at least 20 percent of the units are affordable to lower-income households during the planning period. By-right means local government review must not require a conditional use permit (CUP), planned unit development permit, or any other discretionary review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.1 During the April 14, 2025 meeting, City staff disagreed with HCD’s finding that requirements had not been met. On June 9, 2025, HCD received a letter from the City’s Attorney. The letter opines that the City’s General Plan holds authority “without the need to duplicate one or more zoning ordinances” and operates as “the law to be followed.” Upon further review, HCD determines that the City’s General Plan does not satisfy the necessary rezone requirements of the adopted and approved Housing Element. While the City’s General Plan references the parameters of Housing Element program 1 Gov. Code § 65583.2, subd. (i)

Omar Dadabhoy, Community Development Director

requirement, the text of the General Plan itself neither legally implements nor enforces the requirements that are necessary to meet Housing Element completion.

The City Attorney’s opinion that its General Plan suffices does not absolve the City of its requisite rezoning to permit owner-occupied and rental multifamily residential use by right for developments in which at least 20 percent of the units are affordable to lowerincome households. The City must adopt a zoning ordinance that implements the required rezone to authorize by-right development consistent with its RHNA and adopted Housing Element.

As such, HCD requests that the City revise its zoning ordinance in order to memorialize and implement the by-right requirements of Program 1a and Program 1e of the approved and adopted Housing Element. HCD will review the documentation provided by the City and issue correspondence before taking any action authorized by Government Code section 65585, subdivisions (i) and (j). Such action may include issuance of written findings (Corrective Action Letter) and revoking HCD’s finding that the City’s housing element is in substantial compliance with Housing Element Law and/or referral to the California Office of the Attorney General.

HCD provides the City until November 7, 2025 to provide a written response to these findings. If you have questions or need additional information, please contact Stephanie Chan, Senior Housing Policy Specialist, at [email protected].

Sincerely,
Melinda Coy
Housing Accountability Unit Chief

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. 26-01 TO AMEND THE FOUNTAIN VALLEY MUNICIPAL CODE (FVMC) SECTIONS 21.08.030, 21.15.030, AND

21.90.020, AND ADD SECTION 21.46.120 TO PERMIT OWNER-OCCUPIED AND RENTAL MULTI-FAMILY USES BY RIGHT FOR PROJECTS WITH 20%

OR MORE UNITS AFFORDABLE TO LOWER INCOME HOUSEHOLDS
WHEREAS, the Fountain Valley City Council adopted the Development Code Update on December 7, 2000; and
WHEREAS, the 2021-2029 Housing Element, approved through Resolution No. 9853 by the City Council on October 4, 2022 was certified by the State Housing Community Development Department ("HCD") on October 13, 2022; and WHEREAS, “Program 1a: Rezone to Accommodate RHNA” of the 2021-2029 Housing Element notes that the City shall permit owner-occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households; and WHEREAS, State HCD found that the FVMC is out of compliance with Program 1a of the 2021-2029 Housing Element and California Government Code Section 65583.2(h) and (i) which allows projects by right if they provide 20 percent of the units in the development as affordable to lower income households; and
WHEREAS, the City Council recognizes that certain State housing law requirements apply by operation of law and, to the extent of any inconsistency, supersede and control over conflicting provisions of the FVMC; and
WHEREAS, to promote administrative clarity, the City Council desires to amend the FVMC to expressly implement by-right housing provisions consistent with Government Code section 65583.2(h) and (i) and the City’s certified Housing Element; WHEREAS, the Fountain Valley Planning Commission considered the proposed CA 26-01 at a duly noticed public hearing on February 25, 2026, and by a vote of 5-0 recommended the City Council approve a Categorical exemption per CEQA and approve CA 26-01 to amend FVMC Section 21.08.030, 21.15.030, and 21.90.020, and add Section

21.46.120 to allow projects by right if they provide 20 percent of the units in the development as affordable to lower income households; and
WHEREAS, the proposed CA 26-01 has been publicly noticed in accordance with State Law and the Fountain Valley Municipal Code.

SECTION 1
The City Council hereby determines that CA 26-01 is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2)(the activity would not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. The amendment is merely a text amendment to the FVMC as required by Program 1a of the 2021-2029 Housing Element and California Government Code 65583.2(h) and (i) to permit owner-occupied and rental multifamily uses by right for projects with 20% or more units affordable to lower income households. Moreover, for purposes of this section and Section 65583, the phrase “use by right” shall mean that the local government’s review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.

Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that “use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.

SECTION 2
The City Council finds that due notice of the public hearing on April 7, 2026, 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 Title 21, in the case of a title amendment. The proposed amendment would promote and encourage the development of a variety of housing opportunities to accommodate current and projected households by promoting the construction of additional dwelling units to accommodate Fountain Valley’s share of regional housing needs in accordance with adopted land use policies (General Plan Housing Element Goal #1/Policy 1.1). CA 26-01 would be consistent with Program 1a of the 2021-2029 Housing Element, California Government Code Section 65583.2(h) and (i), 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 26-01 would clearly permit ownerPage 278 occupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households per Program 1a of the 2021-2029 Housing Element and California Government Code 65583.2(h) and (i) to ensure consistency with the Fountain Valley Municipal Code to ensure public convenience, health, interest, safety, and welfare would 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 26-01 would amend FVMC Sections

21.08.030, 21.15.030, and 21.90.020, and add 21.46.120 to permit owneroccupied and rental multi-family uses by right for projects with 20% or more units affordable to lower income households to provide internal consistency with other applicable provisions of Title 21 and the General Plan. There are no other known inconsistencies with the proposed amendment and other applicable provisions of Title 21.

SECTION 4
The permit required for Affordable Housing in Section 21.08.030 Table 2-2 is amended as follows and footnote (5) to Table 2-2 is added as follows:
“…
TABLE 2-2

PERMIT REQUIRED BY DISTRICT
Allowed Uses and Permit Requirements for
Residential Zoning Districts
P
CUP
SUP
—
Permitted Use
Conditional Use Permit Required
Special Use Permit Required
Use Not Allowed
LAND USE (1) R1 GH R2 R3 R4 R5
Specific Use
Regulations

RESIDENTIAL USES
Affordable housing P(5) P(5) P(5) P(5) P(5) P(5)
Notes:
(5) The following types of residential projects shall be allowed by right pursuant to California Government Code section 65583.2(h) and (i): residential projects that include owner occupied and/or rental multi-family residential units located on sites identified in the City’s adopted Housing Element inventory as suitable to accommodate the City’s lower-income Regional Housing Needs Allocation, as that inventory may be amended from time to time, and that incorporate a minimum of 20 percent of the units in the development as affordable to lower-income households.. …”
SECTION 5

The permit required for Affordable Housing in Section 21.15.030 Table 2-10 is amended as follows and footnote (5) to Table 2-10 is added as follows:
“…
TABLE 2-10

MIXED-USE DISTRICT LAND USE AND PERMIT REQUIREMENTS
P
CUP
—
Permitted Use
Conditional Use Permit required
Use not allowed
Allowed Uses and Permit
Requirements for Mixed-Use Zoning
Districts PERMIT REQUIRED
LAND USE (1) MU-1 and MU-2 Specific Use Regulations

MANUFACTURING AND PROCESSING USES

RESIDENTIAL USES
Affordable housing P(5)
Notes:
(5) The following types of residential projects shall be allowed by right pursuant to California Government Code section 65583.2(h) and (i): residential projects that include owner occupied and/or rental multi-family residential units located on sites identified in the City’s adopted Housing Element inventory as suitable to accommodate the City’s lower-income Regional Housing Needs Allocation, as that inventory may be amended from time to time, and that incorporate a minimum of 20 percent of the units in the development as affordable to lower-income households. …”
SECTION 6
Section 21.90.020(2) is hereby amended to include the definition of “by right” …”
“By right” means a use that is allowed without discretionary review or approval that would not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of a site shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A by right use may still be subject to design review, provided that the design review does not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. The by-right approval process may also be referred to as a ministerial approval process, where the review of a project is based upon fixed/mandatory standards and does not involve the use of personal judgment. …”
SECTION 7

The definition of “permitted use” in Section 21.90.020(16) is hereby amended as follows:
…”
"Permitted use" means any use allowed in a zoning district and subject to the restrictions applicable to that zoning district. The use shall be allowed by right without discretionary review or approval that would not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of a site shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A by right use may still be subject to design review, provided that the design review does not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. The by-right approval process may also be referred to as a ministerial approval process, where the review of a project is based upon fixed/mandatory standards and does not involve the use of personal judgment.
…”
SECTION 8
Section 21.90.020(4) is hereby amended to include the definition of “discretionary” …”
“Discretionary” means a use or project that is not classified as by right/ministerial and constitutes a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code (CEQA). These projects are subject to review based on best practices and expert judgment rather than fixed/mandatory requirements. Discretionary review typically includes evaluation based on required findings, public notice, public hearing, inclusion of conditions of approval (and or Mitigation Measures), decision by an appointed and/or elected body and the opportunity to appeal. …”
SECTION 9
Section 21.90.020(13) is hereby amended to include the definition of “ministerial” …”
“Ministerial.” See “By right.”
…”
SECTION 10
Section 21.46.120 “Specific plan uses.” shall be added as follows:

“…
Permitted uses shall be outlined in each specific plan. Notwithstanding any provision of a specific plan to the contrary, the following types of residential projects shall be allowed by right pursuant to California Government Code section 65583.2(h) and (i): residential projects that include owner occupied and/or rental multi-family residential units located on sites identified in the City’s adopted Housing Element inventory as suitable to accommodate the City’s lower-income Regional Housing Needs Allocation, as that inventory may be amended from time to time, and that incorporate a minimum of 20 percent of the units in the development as affordable to lower-income households.
…”
SECTION 11
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 12
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 _____, 2026.

ATTEST:
________________________ ________________________
Rick Miller, City Clerk Jim Cunneen, Mayor

APPROVED AS TO FORM

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

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

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

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project?: Yes No Signature: ________________________________ Date: _____________ Title: ___________________ Signed by Lead Agency Signed by Applicant

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 7, 2026
Members of the City Council
SUBJECT: Approve the Proposed 2026 Legislative Platform Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☒ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☒ Attract and retain quality staff through best practices and trends ☒ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable

EXECUTIVE SUMMARY
The City Council adopted a revised Legislative Monitoring Program Policy on May 6, 2014, which was originally adopted on May 24, 1999. This policy serves multiple purposes: to establish a Legislative Committee; to provide a general policy framework for the Committee to analyze and take positions on active legislation; and to set forth a general communication guide for ensuring the entire City Council stays informed. To proactively enable City staff to respond to rapidly evolving legislation, the policy also included an annual Legislative Platform. Staff is proposing the adoption of the proposed 2026 Legislative Platform to be responsive to legislation that may impact the City. The Legislative Committee met on March 18, 2026, and recommended approval of the proposed 2026 Legislative Platform.

DISCUSSION
The current Legislative Monitoring Program Policy, adopted by the City Council on May 6, 2014, was established to improve the City’s response to active legislation that concerns specific policy areas (see Attachment No. 1). The procedure set forth calls for the annual appointment of two (2) City Council members, by the Mayor, to the Legislative Committee. This Committee currently consists of Mayor Jim Cunneen and Council Member Kim Constantine, and on an annual basis will recommend a Legislative Platform covering general policies on fiscal, transportation, environmental, liability or risk management, personnel, and community development to the City Council for adoption. The adoption of an annual Legislative Platform is a common practice for a legislative body to proactively set forth the policies it supports or

Approve the Proposed 2026 Legislative Platform
April 7, 2026

opposes. By adopting more defined, broad policy statements, staff would be able to respond more quickly to rapidly moving legislation in the Capitol.

The Committee will also meet on an as-needed basis during the legislative sessions to discuss active legislation that is not accounted for in the City’s current Legislative Platform. During these as-needed meetings, staff will present the Committee with the facts and analysis of the active legislation and seek direction from the Committee as to any positions and/or actions to take. Following that, staff will memorialize the Committee’s direction, and if no comments or concerns are received from other City Council Members, appropriate actions, such as issuing letters to our legislators, will be taken.

The proposed 2026 Legislative Platform (see Attachment No. 2) has been drafted with consideration to legislative policies of the existing Legislative Monitoring Program, the League of California Cities legislative policies, input from all City departments, and input from the City’s Legislative Committee. Any active legislation with policy matters that fall outside of the strict confines of the Legislative Platform will be reviewed on a case-by-case basis by the Legislative Committee, as discussed earlier.

FISCAL REVIEW
There is no fiscal impact related to this item. As bills are introduced and the City considers positions, each bill will be analyzed for any fiscal impact it may have. In keeping with the Policy statements of the Legislative Monitoring Program, the City will generally support the protection of our revenues and oppose bills that have the potential to increase costs.

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
The proposed 2026 Legislative Platform does not contain legal impacts. As bills are introduced and the City considers positions, each bill will be analyzed for its legal impact on the City, and the Attorney for the City will be consulted as needed.

ALTERNATIVES
Alternative No. 1: Approve the proposed 2026 Legislative Platform.

Alternative No. 2: Do not approve the proposed 2026 Legislative Platform and recommend changes to the proposed 2026 Legislative Platform.

Alternative No. 3: Take no action and have the Legislative Committee review all potential legislative items.

Approve the Proposed 2026 Legislative Platform
April 7, 2026

RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1 to approve the proposed 2026 Legislative Platform.

Prepared by: Meghan Wishner, Management Analyst
Reviewed by: Maggie Le, City Manager
Approved by: Maggie Le, City Manager
Attachments:

1. Adopted Legislative Monitoring Program

2. Proposed 2026 Legislative Platform Redline

3. Proposed 2026 Legislative Platform Clean

1 CITY OF FOUNTAIN VALLEY
20265 LEGISLATIVE PLATFORM
Administrative and Employment Related
 Support legislation modifying the Fair Labor Standards Act to permit adjustable work schedules to meet the needs of management and labor and to eliminate prospective and retroactive overtime payments.
 Support legislation that strengthens or reinforces management rights to include contracting and contract negotiations.
 Support legislation that reduces the City’s liability exposure.  Support legislation promoting alternative technology options when posting and noticing of public hearings and meetings, including online posting, at no cost to the City
 Support legislation that advocates fair and proportionate representation on countywide and regional boards.
 Support legislation to continue the PEPRA system or similar measure.  Support legislation that would define the term “limited duration” when hiring for “extra help” positions.
 Oppose legislation which would increase employee benefits without system reforms which would offset increased employer costs.
 Oppose legislation which would increase employer liability for unemployment compensation, or which would reduce local discretion to manage this risk.  Oppose the imposition of unfunded or inadequately funded state mandates.  Oppose any measure that would divert local funds to the State, or any other entity, to balance its budget.
 Support legislation that establishes clear standards for local government use of artificial intelligence (AI), protects resident privacy and public data, and provides grant funding for municipal cybersecurity and AI tools.

Recreation & Community Services
 Support legislation that provides funding for transportation services especially for senior citizens, local job-training programs especially for youth and young adults.
 Support legislation that promotes health & wellness for children and seniors, when financially feasible.
 Support measures that promote volunteerism.
 Support legislation and funding for the construction, rehabilitation and maintenance of public facilities, parks and open space at the local, State and Federal levels.
 Support Federal and State legislation and other opportunities that promote health and wellness services and education offered to youth, veterans, low income and senior communities.

2  Support Federal and State funding opportunities that promote our ability to provide public access to technology at community facilities.  Support legislation that provides funding for, or otherwise promotes programs to address and increase the level of physical activity among our community’s children.
 Support legislation to provide flexibility to use Parking-in-lieu fees for other infrastructure projects.
 Support efforts to provide an expedited process for the fair distribution of State bond funds and other grant opportunities.
 Oppose efforts that erode funding for vital regional and community services that negatively impact California’s access to parks, open space, bike lanes, after school programming, senior services, facilities that promote physical activity, protect natural resources and strengthen safety and security.  Oppose legislation limiting Fountain Valley’s ability to address homeless issues.  Oppose all efforts of social service and program realignment where funding has not been fully appropriated.

Environment
 Support measure which increase the water supply or improve water quality within the region.
 Support efforts that encourage the use of energy and water conservation techniques, as long as those measures do not contain unnecessary punitive measures to residents, business owners and local agencies.  Support legislation that would protect consumers and small business owners and end excessive energy and water charges.
 Support Federal and State programs and legislation that encourage the use of commercially viable, new clean energy technology, if such clean technology has proven to be cost efficient.
 Support measures that provide greater local control in meeting the environmental needs of the community (i.e. recycling/reclaiming of natural resources and energy efficiency measures).
 Support efforts designed to reduce or eliminate the spread of graffiti.  Support measures that maintain and enhance local authority and economic flexibility to regulate solid waste and recycles.
 Support efforts to streamline and improve the California Environmental Quality Act (CEQA) process.
 Support legislation or grant opportunities for local governments that provide funding for development or enhancing alternative fueling stations for vehicles and energy efficiency upgrades to City facilities.
 Oppose legislation that imposes undue hardship on local agencies to implement environmental/air quality regulations.
 Oppose imposition of unreasonable and/or unfunded water testing and treatment requirements.

3 Housing, Land Use Planning,CommunityPlanning, Community Development and Economic Development
 Support legislation that strengthens the concept of local control with regulatory tools to ensure the City can maintain its quality of life.  Support legislation that supports local businesses and industry, including measures that remove barriers allowing local industries to sell goods and services internationally (i.e., free trade agreements).  Support legislation and funding for the adoption of effective state building codes to promote community building safety and mitigation of natural hazards.  Support legislation that would increase available funding for affordable housing, especially funding for each community to meet the affordability requirement of the RHNA allocation within the eight-year housing element cycle and the express recognition that, absent funding, that the affordable RHNA allocations may be unattainable.
 Support Federal and State financial support for affordable housing for lowincome elderly and disabled individuals.  Support legislation that would provide additional resources, including adequate funding, to local agencies to address regional growth issues such as air quality, water quality, air pollution, ocean water quality, transportation corridors, and homelessness.
 Support efforts that restrict the legal and fiscal capability of local agencies to prepare, adopt and implement fiscal plans for orderly growth, development, beautification and conservation of local planning areas, including, but not limited to, the regulatory authority over zoning, subdivisions, annexations, and redevelopment areas.
 Support state and federal legislation that allows reasonable state and local government oversight of group/sober living home including licensing, location, and occupancy limits similar to state licensing requirements for Community Care Facilities.
 Support legislation allowing greater use of Housing Authority funds to construct and operate navigation centers.
 Support efforts that are designed to provide local governments with the tools necessary to bolster economic development.
 Support legislation and regulatory streamlining initiatives that would enhance the City’s ability to attract and retain businesses as well as encourage business expansion and job retention.
 Support legislation that supports and protects business owners.  Support legislation that stabilizes the property insurance market, protects homeowners and small businesses from loss of coverage, and provides incentives for insurers to remain in California.
 Oppose any legislation that is inconsistent with the doctrine of home rule, interferes with local exercise of police powers over local land use, or requires a

4 federal, state, and/or county entity to develop model planning practices and policies.
 Oppose legislation that preempts local government’s ability to regulate and exercise its enforcement powers.
 Oppose additional housing mandates without necessary funding or legislation that penalizes a city if units identified in the Regional Housing Need Assessment (RHNA) are not constructed.
 Oppose any legislation mandate that supersedes local development standards or denies local governments the ability to enforce its development standards.  Oppose legislation that mandates increases in density or reduction in parking standards in residential zones.
 Oppose legislation to decrease Federal Community Block Grant funding.  Oppose legislation that would require local governments to compensate property owners for the effects of zoning and ordinary local land use control.

Oppose legislation requiring local governments to allow residential uses in nonresidential zones.  Support Legislation that would authorize a local government to count congregate housing for the elderly toward the locality’s share of the regional housing needs allocation (RHNA).

Public Safety
 Support legislation and funding to strengthen and enforce legal protections for all individuals who are victims of human trafficking and crime, including minors and victims of family violence and sexual assault.
 Support legislative efforts to address the negative impacts of Assembly BillB 109 (Public Safety Realignment), Proposition 47 (Reduced Penalties for Some Crimes) and Proposition 57 (Parole for Non-Violent Criminals) on local governments, while recognizing and building upon the public safety benefits of Proposition 36, including increased accountability for repeat offenders. and provide local law enforcement with the appropriate tools to reduce criminal activity.
 Support legislation that provides funding support for disaster preparedness, earthquake preparedness, fire suppression and prevention, hazardous materials mitigation, rescue, emergency medical services, Homeland Security, State COPS program, booking fee reimbursement and other local law enforcement activities.
 Support legislation that provides local law enforcement agencies authority to recover any costs associated with complying with any federal, state or court‐ordered licensing, registration and testing requirements.  Support legislation to provide a greater share of and increased latitude to spend asset forfeiture funds.
 Support legislation and funding that promotes comprehensive and effective drug and alcohol education and rehabilitation programs.
 Support efforts to address the illicit use of opioids and hold accountable those who illegally sell and distribute them.

5  Support legislative efforts and additional funding to help address the issue of homelessness.
 Support legislation that prohibits drones from interfering with a firefighting operation or other public safety response.
 Support legislation that enhances the 9-1-1 system integration with technology to trace cell phone callers and their location.
 Support legislation that would provide local jurisdictions with increased authority to regulate the sale of automobiles on public streets.
 Support legislation that establishes greater City Council latitude in setting speed limits.
 Support legislation to vigorously oppose the early release of prisoners, except in cases of extreme health conditions (COVID).
 Support legislation that limits the issuance of alcoholic beverage licenses in areas of high crime or where excessive numbers of licenses exist.  Support legislative efforts to increase the amount of grant funding for local law enforcement operations, including school resource officers, body-worn camera system, and disaster preparedness initiatives.
 Support efforts which strengthen local fire and life safety services, including providing for greater local control over emergency medical and ambulance services to ensure the residents of Fountain Valley receive the highest possible level of emergency care.
 Support legislation that requires maintenance of defensible space in wildfireprone areas.  Support regional efforts to improve interoperability of voice and data communications equipment.
 Support legislation that would provide local jurisdictions with increased authority regulate the sale of automobiles on public streets.
 Support legislation that provides funding for terrorism response training, with broad interpretations of training curriculums.
 Support legislation that would provide increased funding to public safety agencies to enhance training to address community needs such as mental health and homelessness.
 Support legislation that offers drug offenders a chance to avoid a criminal conviction by entering a treatment program that is supervised by a special court, also known as a drug court. Drug court was essentially eliminated with proposition 47 and its elimination has led to more addicted individuals on our streets.
 Support legislation that recognizes mental health treatment non-compliance and addresses the state, county and/or city’s inability to detain and assist those individuals that are refusing to take prescribed medication for a mental health disorder.
 Support legislation that addresses the ongoing impact of wall times (Ambulance Patient Offload Delays) on patient care throughout California.  Support legislation and implementation of State program and policies that promote pedestrian and bicycling safety.

6  Support legislation that provides more support to those struggling with substance and opioid abuse.
 Support legislation to prevent the flow of fentanyl into the City, including legislation regarding treatment for addiction and criminal penalties and prosecution for the sale of fentanyl.
 Support ongoing funding to bolster local efforts to support individuals experiencing or at risk of homelessness as well as strengthen state and local partnerships to improve access to wraparound services.
 Support legislation and implementation of State programs and policies that promote pedestrian, bicycling and e-bike safety.
 Support legislation that establishes age requirements and safety standards for ebike operations, provides funding for local enforcement and education programs and allows local governments to regulate high-speed e-bike classes.  Support legislation that strengthens penalties for organized retail theft, improves data sharing between retailers and law enforcement and provides state grant funding for retail theft task forces.
 Support legislation that establishes safety standards for lithium-ion batteries, provides funding for fire department training and response equipment and regulates battery recycling and disposal programs.
 Oppose legislation to create new financial burdens or erode public safety such as offenders who are now being supervised in the community by county probation departments rather than the California of Corrections and Rehabilitation parole officers.
 Oppose legislation that would impede local law enforcement from addressing crime problems and recovering costs resulting from a crime committed by the guilty party.
 Oppose legislation that would decrease funding for the Assistance to Firefighters Grant Program within the Department of Homeland Security.  Oppose legislation, which would eliminate abandoned vehicle programs and a local government’s ability to immediately remove abandoned vehicles.  Oppose legislation that would decrease funding to the various Community Oriented Policing Services (COPS) programs.
 Oppose legislation, which would eliminate abandoned vehicle programs and a local government’s ability to immediately remove abandoned vehicles.  Oppose legislation that would allow public access to unencrypted, or sensitive law enforcement information over law enforcement communication systems. (Senate Bill 1000 was defeated in 2022 and will be resubmitted in 2023) Revenue and Taxation
 Support legislation that leads to greater financial independence from federal, state and/or county government, and protects local resources from seizure by federal, state and/or county agencies.
 Supports any measure that would provide greater local control over how local funds are expended.

7  Support legislation and funding that preserves and enhances a positive business climate and maintains and grows the business tax base.
 Support legislation that would support new financing tools and programs that would encourage local economic development through tax increment financing.  Support efforts which make funds to support public facilities more available to local municipalities including, but not limited to libraries and open space.  Support legislation to stabilize State and local government financing, to increase funding to local agencies in an equitable manner, and to permit the most costefficient management of State-mandated programs.  Support Federal legislation which would require states to distribute Federal passthrough funds in an equitable manner to local subdivisions of the State.  Support legislation that would redistribute State and Federal revenues to better meet local government responsibilities.
 Support legislation that sources the sales tax generated from online sources to the City they are delivered to as opposed to the current County pool system.  Support legislation the support the City’s right to continue collecting Transient Occupancy Tax (TOT) from hotels and remaining short-term rentals.  Oppose legislative and administrative efforts by online travel companies to circumvent remittance of transient occupancy taxes to local governments from hotel reservations purchased using the internet.
 Oppose legislation which would reduce local discretion over locally-imposed taxes such as transient occupancy tax.
 Oppose legislation that removes or limits the municipal bond tax exemption.  Oppose any legislation that diminishes or does not assure local franchise fees for all utilities’ and communication carriers’ use of City right‐of‐way.  Oppose efforts by the state legislature to assess taxes on public goods and services such as water and electricity.
 Oppose legislation that would lower the vote threshold as a method to impose new taxes or create new financing opportunities.
 Oppose any attempt or measures that seek to weaken or reverse Proposition 13 or other Constitutional provisions that strengthen taxpayer protections, or whose purpose is to raise tax revenues at the expense of the residential or business community.
 Oppose measures that would impose State and Federal mandated costs for which there is no guarantee of local reimbursement or offsetting benefits (i.e. unfunded mandates).
 Oppose any measure that restricts or limits a public entity’s ability to use taxexempt debt or tax increment financing for the purchase or construction of public purpose improvements.
 Oppose any measure that would divert local funds to the State, or any other entity, to balance its budget.
 Oppose any change in tax allocations, which would negatively affect local government.
 Oppose legislation which would reduce local discretion over locally-imposed taxes such as transient occupancy tax.

8 Transportation, Utilities and Public Works
 Support legislation that provides for a more equitable distribution of federal and state highway funds that consider population growth as well as location of sales and gas tax generation.
 Support legislation that provides funding and resources for retrofitting municipal infrastructure to increase energy efficiency.
 Support legislation that would lift the minimum requirement of payment of prevailing wages on municipal Public Works projects.
 Support measures that provide local and regional funding opportunities for local transportation and system projects.
 Support legislation that encourages the use of design-build methods to facilitate a faster, stream-lined approach to project delivery.
 Support legislation such that funding for stormwater and water quality programs would be treated similarly to water, sewer, and solid waste under Proposition 218.
 Support efforts that encourage energy and water conservation techniques.  Support measures which provide greater local control in meeting the environmental needs of the community, i.e. recycling/reclaiming of natural resources and energy efficiency measures.
 Support legislation amending the State Code of Regulations to allow greater flexibility in land use and signage along state highways.  Oppose measures that attempt to raise federal and/or state revenues for transportation funding through new or increased taxes or fees (i.e. vehicle milestraveled tax/fee).  Oppose legislation that imposes undue hardship on local agencies to implement environmental regulations.
 Oppose new formula splits that reduce local share of transportation funding.  Oppose a double taxation system (i.e., paying tax at the pump and a vehicle miles traveled tax).Support policies that provide funding and greater flexibility when complying with state environmental and transportation regulations.  Support policies that expand the eligibility of exemptions, extensions, and delays when complying with state environmental and transportation regulations.  Support policies that restore local control, oversight, and due process when complying with state regulations.

Federal Legislation
 Support efforts to reinstate funding for Safe Routes to Schools programs.  Support streamlined environmental processing for federal regulatory permits.  Support continued funding for the Energy Efficiency Block Grant Program in order to provide resources directly to local governments for programs that improve energy efficiency.

9  Support collecting and remitting state and local sales taxes to the state and city in which the purchaser is residing (i.e. purchases made over the Internet; by mail order; by catalog, etc.).
 Support legislation to modify the Federal Fair Labor Standards Act (FLSA) as it relates to regulating public sector employment.
 Support legislation that provides tangible and productive tools and incentives to support job creation and retention.
 Support legislation and grant opportunities that preserve or increase funding for Community Development Block Grant (CDBG), HOME, and Section 8 Housing.  Support legislation to hold the State of California and state agencies to the same transparency and accountability standards as cities.
 Support Federal legislation, which would require states to distribute Federal pass-through funds in an equitable manner to local subdivisions of the State.  Support legislation that would redistribute State and Federal revenues to better meet local government responsibilities.
 Support any measure that would provide greater local control over how local funds are expended.
 Support legislation that would reform or increase transparency and accountability into the legislative appropriation process.
 Support measures that provide relief to businesses and the City due to impacts of unprecedented pandemics, such as COVID-19.

1 CITY OF FOUNTAIN VALLEY
2026 LEGISLATIVE PLATFORM
Administrative and Employment Related
 Support legislation modifying the Fair Labor Standards Act to permit adjustable work schedules to meet the needs of management and labor and to eliminate prospective and retroactive overtime payments.
 Support legislation that strengthens or reinforces management rights to include contracting and contract negotiations.
 Support legislation that reduces the City’s liability exposure.  Support legislation promoting alternative technology options when posting and noticing of public hearings and meetings, including online posting, at no cost to the City
 Support legislation that advocates fair and proportionate representation on countywide and regional boards.
 Support legislation to continue the PEPRA system or similar measure.  Support legislation that would define the term “limited duration” when hiring for “extra help” positions.
 Oppose legislation which would increase employee benefits without system reforms which would offset increased employer costs.
 Oppose legislation which would increase employer liability for unemployment compensation, or which would reduce local discretion to manage this risk.  Oppose the imposition of unfunded or inadequately funded state mandates.  Oppose any measure that would divert local funds to the State, or any other entity, to balance its budget.
 Support legislation that establishes clear standards for local government use of artificial intelligence (AI), protects resident privacy and public data, and provides grant funding for municipal cybersecurity and AI tools.

Recreation & Community Services
 Support legislation that provides funding for transportation services especially for senior citizens, local job-training programs especially for youth and young adults.
 Support legislation that promotes health & wellness for children and seniors, when financially feasible.
 Support measures that promote volunteerism.
 Support legislation and funding for the construction, rehabilitation and maintenance of public facilities, parks and open space at the local, State and Federal levels.
 Support Federal and State legislation and other opportunities that promote health and wellness services and education offered to youth, veterans, low income and senior communities.

2  Support Federal and State funding opportunities that promote our ability to provide public access to technology at community facilities.  Support legislation that provides funding for, or otherwise promotes programs to address and increase the level of physical activity among our community’s children.
 Support legislation to provide flexibility to use Parking-in-lieu fees for other infrastructure projects.
 Support efforts to provide an expedited process for the fair distribution of State bond funds and other grant opportunities.
 Oppose efforts that erode funding for vital regional and community services that negatively impact California’s access to parks, open space, bike lanes, after school programming, senior services, facilities that promote physical activity, protect natural resources and strengthen safety and security.  Oppose legislation limiting Fountain Valley’s ability to address homeless issues.  Oppose all efforts of social service and program realignment where funding has not been fully appropriated.

Environment
 Support measure which increase the water supply or improve water quality within the region.
 Support efforts that encourage the use of energy and water conservation techniques, as long as those measures do not contain unnecessary punitive measures to residents, business owners and local agencies.  Support legislation that would protect consumers and small business owners and end excessive energy and water charges.
 Support Federal and State programs and legislation that encourage the use of commercially viable, new clean energy technology, if such clean technology has proven to be cost efficient.
 Support measures that provide greater local control in meeting the environmental needs of the community (i.e. recycling/reclaiming of natural resources and energy efficiency measures).
 Support efforts designed to reduce or eliminate the spread of graffiti.  Support measures that maintain and enhance local authority and economic flexibility to regulate solid waste and recycles.
 Support efforts to streamline and improve the California Environmental Quality Act (CEQA) process.
 Support legislation or grant opportunities for local governments that provide funding for development or enhancing alternative fueling stations for vehicles and energy efficiency upgrades to City facilities.
 Oppose legislation that imposes undue hardship on local agencies to implement environmental/air quality regulations.
 Oppose imposition of unreasonable and/or unfunded water testing and treatment requirements.

3 Housing, Land Use Planning, Community Development and Economic Development
 Support legislation that strengthens the concept of local control with regulatory tools to ensure the City can maintain its quality of life.  Support legislation that supports local businesses and industry, including measures that remove barriers allowing local industries to sell goods and services internationally (i.e., free trade agreements).  Support legislation and funding for the adoption of effective state building codes to promote community building safety and mitigation of natural hazards.  Support legislation that would increase available funding for affordable housing, especially funding for each community to meet the affordability requirement of the RHNA allocation within the eight-year housing element cycle and the express recognition that, absent funding, that the affordable RHNA allocations may be unattainable.
 Support Federal and State financial support for affordable housing for lowincome elderly and disabled individuals.  Support legislation that would provide additional resources, including adequate funding, to local agencies to address regional growth issues such as air quality, water quality, air pollution, ocean water quality, transportation corridors, and homelessness.
 Support efforts that restrict the legal and fiscal capability of local agencies to prepare, adopt and implement fiscal plans for orderly growth, development, beautification and conservation of local planning areas, including, but not limited to, the regulatory authority over zoning, subdivisions, annexations, and redevelopment areas.
 Support state and federal legislation that allows reasonable state and local government oversight of group/sober living home including licensing, location, and occupancy limits similar to state licensing requirements for Community Care Facilities.
 Support legislation allowing greater use of Housing Authority funds to construct and operate navigation centers.
 Support efforts that are designed to provide local governments with the tools necessary to bolster economic development.
 Support legislation and regulatory streamlining initiatives that would enhance the City’s ability to attract and retain businesses as well as encourage business expansion and job retention.
 Support legislation that supports and protects business owners.  Support legislation that stabilizes the property insurance market, protects homeowners and small businesses from loss of coverage, and provides incentives for insurers to remain in California.
 Oppose any legislation that is inconsistent with the doctrine of home rule, interferes with local exercise of police powers over local land use, or requires a

4 federal, state, and/or county entity to develop model planning practices and policies.
 Oppose legislation that preempts local government’s ability to regulate and exercise its enforcement powers.
 Oppose additional housing mandates without necessary funding or legislation that penalizes a city if units identified in the Regional Housing Need Assessment (RHNA) are not constructed.
 Oppose any legislation mandate that supersedes local development standards or denies local governments the ability to enforce its development standards.  Oppose legislation that mandates increases in density or reduction in parking standards in residential zones.
 Oppose legislation to decrease Federal Community Block Grant funding.  Oppose legislation that would require local governments to compensate property owners for the effects of zoning and ordinary local land use control.

Oppose legislation requiring local governments to allow residential uses in nonresidential zones.  Support Legislation that would authorize a local government to count congregate housing for the elderly toward the locality’s share of the regional housing needs allocation (RHNA).

Public Safety
 Support legislation and funding to strengthen and enforce legal protections for all individuals who are victims of human trafficking and crime, including minors and victims of family violence and sexual assault.
 Support legislative efforts to address the negative impacts of Assembly Bill 109 (Public Safety Realignment), Proposition 47 (Reduced Penalties for Some Crimes) and Proposition 57 (Parole for Non-Violent Criminals) on local governments, while recognizing and building upon the public safety benefits of Proposition 36, including increased accountability for repeat offenders.  Support legislation that provides funding support for disaster preparedness, earthquake preparedness, fire suppression and prevention, hazardous materials mitigation, rescue, emergency medical services, Homeland Security, State COPS program, booking fee reimbursement and other local law enforcement activities.
 Support legislation that provides local law enforcement agencies authority to recover any costs associated with complying with any federal, state or court‐ordered licensing, registration and testing requirements.  Support legislation to provide a greater share of and increased latitude to spend asset forfeiture funds.
 Support legislation and funding that promotes comprehensive and effective drug and alcohol education and rehabilitation programs.
 Support efforts to address the illicit use of opioids and hold accountable those who illegally sell and distribute them.
 Support legislative efforts and additional funding to help address the issue of homelessness.

5  Support legislation that prohibits drones from interfering with a firefighting operation or other public safety response.
 Support legislation that enhances the 9-1-1 system integration with technology to trace cell phone callers and their location.
 Support legislation that would provide local jurisdictions with increased authority to regulate the sale of automobiles on public streets.
 Support legislation that establishes greater City Council latitude in setting speed limits.
 Support legislation to vigorously oppose the early release of prisoners, except in cases of extreme health conditions (COVID).
 Support legislation that limits the issuance of alcoholic beverage licenses in areas of high crime or where excessive numbers of licenses exist.  Support legislative efforts to increase the amount of grant funding for local law enforcement operations, including school resource officers, body-worn camera system, and disaster preparedness initiatives.
 Support efforts which strengthen local fire and life safety services, including providing for greater local control over emergency medical and ambulance services to ensure the residents of Fountain Valley receive the highest possible level of emergency care.
 Support legislation that requires maintenance of defensible space in wildfireprone areas.  Support regional efforts to improve interoperability of voice and data communications equipment.
 Support legislation that would provide local jurisdictions with increased authority regulate the sale of automobiles on public streets.
 Support legislation that provides funding for terrorism response training, with broad interpretations of training curriculums.
 Support legislation that would provide increased funding to public safety agencies to enhance training to address community needs such as mental health and homelessness.
 Support legislation that offers drug offenders a chance to avoid a criminal conviction by entering a treatment program that is supervised by a special court, also known as a drug court. Drug court was essentially eliminated with proposition 47 and its elimination has led to more addicted individuals on our streets.
 Support legislation that recognizes mental health treatment non-compliance and addresses the state, county and/or city’s inability to detain and assist those individuals that are refusing to take prescribed medication for a mental health disorder.
 Support legislation that addresses the ongoing impact of wall times (Ambulance Patient Offload Delays) on patient care throughout California.  Support legislation and implementation of State program and policies that promote pedestrian and bicycling safety.
 Support legislation that provides more support to those struggling with substance and opioid abuse.

6  Support legislation to prevent the flow of fentanyl into the City, including legislation regarding treatment for addiction and criminal penalties and prosecution for the sale of fentanyl.
 Support ongoing funding to bolster local efforts to support individuals experiencing or at risk of homelessness as well as strengthen state and local partnerships to improve access to wraparound services.
 Support legislation and implementation of State programs and policies that promote pedestrian, bicycling and e-bike safety.
 Support legislation that establishes age requirements and safety standards for ebike operations, provides funding for local enforcement and education programs and allows local governments to regulate high-speed e-bike classes.  Support legislation that strengthens penalties for organized retail theft, improves data sharing between retailers and law enforcement and provides state grant funding for retail theft task forces.
 Support legislation that establishes safety standards for lithium-ion batteries, provides funding for fire department training and response equipment and regulates battery recycling and disposal programs.
 Oppose legislation to create new financial burdens or erode public safety such as offenders who are now being supervised in the community by county probation departments rather than the California of Corrections and Rehabilitation parole officers.
 Oppose legislation that would impede local law enforcement from addressing crime problems and recovering costs resulting from a crime committed by the guilty party.
 Oppose legislation that would decrease funding for the Assistance to Firefighters Grant Program within the Department of Homeland Security.  Oppose legislation, which would eliminate abandoned vehicle programs and a local government’s ability to immediately remove abandoned vehicles.  Oppose legislation that would decrease funding to the various Community Oriented Policing Services (COPS) programs.
 Oppose legislation, which would eliminate abandoned vehicle programs and a local government’s ability to immediately remove abandoned vehicles.  Oppose legislation that would allow public access to unencrypted, or sensitive law enforcement information over law enforcement communication systems. (Senate Bill 1000 was defeated in 2022 and will be resubmitted in 2023) Revenue and Taxation
 Support legislation that leads to greater financial independence from federal, state and/or county government, and protects local resources from seizure by federal, state and/or county agencies.
 Supports any measure that would provide greater local control over how local funds are expended.
 Support legislation and funding that preserves and enhances a positive business climate and maintains and grows the business tax base.

7  Support legislation that would support new financing tools and programs that would encourage local economic development through tax increment financing.  Support efforts which make funds to support public facilities more available to local municipalities including, but not limited to libraries and open space.  Support legislation to stabilize State and local government financing, to increase funding to local agencies in an equitable manner, and to permit the most costefficient management of State-mandated programs.  Support Federal legislation which would require states to distribute Federal passthrough funds in an equitable manner to local subdivisions of the State.  Support legislation that would redistribute State and Federal revenues to better meet local government responsibilities.
 Support legislation that sources the sales tax generated from online sources to the City they are delivered to as opposed to the current County pool system.  Support legislation the support the City’s right to continue collecting Transient Occupancy Tax (TOT) from hotels and remaining short-term rentals.Oppose legislative and administrative efforts by online travel companies to circumvent remittance of transient occupancy taxes to local governments from hotel reservations purchased using the internet.
 Oppose legislation which would reduce local discretion over locally-imposed taxes such as transient occupancy tax.
 Oppose legislation that removes or limits the municipal bond tax exemption.  Oppose any legislation that diminishes or does not assure local franchise fees for all utilities’ and communication carriers’ use of City right‐of‐way.  Oppose efforts by the state legislature to assess taxes on public goods and services such as water and electricity.
 Oppose legislation that would lower the vote threshold as a method to impose new taxes or create new financing opportunities.
 Oppose any attempt or measures that seek to weaken or reverse Proposition 13 or other Constitutional provisions that strengthen taxpayer protections, or whose purpose is to raise tax revenues at the expense of the residential or business community.
 Oppose measures that would impose State and Federal mandated costs for which there is no guarantee of local reimbursement or offsetting benefits (i.e. unfunded mandates).
 Oppose any measure that restricts or limits a public entity’s ability to use taxexempt debt or tax increment financing for the purchase or construction of public purpose improvements.
 Oppose any measure that would divert local funds to the State, or any other entity, to balance its budget.
 Oppose any change in tax allocations, which would negatively affect local government.
 Oppose legislation which would reduce local discretion over locally-imposed taxes such as transient occupancy tax.

Transportation, Utilities and Public Works

8  Support legislation that provides for a more equitable distribution of federal and state highway funds that consider population growth as well as location of sales and gas tax generation.
 Support legislation that provides funding and resources for retrofitting municipal infrastructure to increase energy efficiency.
 Support legislation that would lift the minimum requirement of payment of prevailing wages on municipal Public Works projects.
 Support measures that provide local and regional funding opportunities for local transportation and system projects.
 Support legislation that encourages the use of design-build methods to facilitate a faster, stream-lined approach to project delivery.
 Support legislation such that funding for stormwater and water quality programs would be treated similarly to water, sewer, and solid waste under Proposition 218.
 Support efforts that encourage energy and water conservation techniques.  Support measures which provide greater local control in meeting the environmental needs of the community, i.e. recycling/reclaiming of natural resources and energy efficiency measures.
 Support legislation amending the State Code of Regulations to allow greater flexibility in land use and signage along state highways.  Oppose measures that attempt to raise federal and/or state revenues for transportation funding through new or increased taxes or fees (i.e. vehicle milestraveled tax/fee).  Oppose legislation that imposes undue hardship on local agencies to implement environmental regulations.
 Oppose new formula splits that reduce local share of transportation funding.  Oppose a double taxation system (i.e., paying tax at the pump and a vehicle miles traveled tax).Support policies that provide funding and greater flexibility when complying with state environmental and transportation regulations.  Support policies that expand the eligibility of exemptions, extensions, and delays when complying with state environmental and transportation regulations.  Support policies that restore local control, oversight, and due process when complying with state regulations.

Federal Legislation
 Support efforts to reinstate funding for Safe Routes to Schools programs.  Support streamlined environmental processing for federal regulatory permits.  Support continued funding for the Energy Efficiency Block Grant Program in order to provide resources directly to local governments for programs that improve energy efficiency.

9  Support collecting and remitting state and local sales taxes to the state and city in which the purchaser is residing (i.e. purchases made over the Internet; by mail order; by catalog, etc.).
 Support legislation to modify the Federal Fair Labor Standards Act (FLSA) as it relates to regulating public sector employment.
 Support legislation that provides tangible and productive tools and incentives to support job creation and retention.
 Support legislation and grant opportunities that preserve or increase funding for Community Development Block Grant (CDBG), HOME, and Section 8 Housing.  Support legislation to hold the State of California and state agencies to the same transparency and accountability standards as cities.
 Support Federal legislation, which would require states to distribute Federal pass-through funds in an equitable manner to local subdivisions of the State.  Support legislation that would redistribute State and Federal revenues to better meet local government responsibilities.
 Support any measure that would provide greater local control over how local funds are expended.
 Support legislation that would reform or increase transparency and accountability into the legislative appropriation process.
 Support measures that provide relief to businesses and the City due to impacts of unprecedented pandemics, such as COVID-19.

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: April 7, 2026
Members of the City Council
SUBJECT: Project No. 24042; 2025 Sewer Rehabilitation and Replacement Project 1) Accept the bids and award a construction contract to CEM Construction Corporation for Project No. 24042, 2025 Sewer Rehabilitation and Replacement Project (Project), in the amount not-to-exceed $2,031,630; 2) Accept the proposal from PSOMAS and authorize staff to issue a Purchase Order for the proposal amount of $306,422 for Construction Management and Inspection services for the Project;
3) Accept the proposal from JIG Consultants and authorize staff to issue a Purchase Order for the proposal amount of $24,585 for continued Construction Engineering Support services for the Project; 4) Accept the proposal from The Converse Professional Group and authorize staff to issue a Purchase Order for the proposal amount of $19,848 for Materials and Soils Testing services for the Project; and, 5) Approve the Director of Public Works to have a one-time 20% Change Order authority for this Project.

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
Staff recommends that the City Council accept the bids and award a construction contract to CEM Construction Corporation for Project No. 24042, 2025 Sewer Rehabilitation and Replacement Project (Project), in the amount not-to-exceed $2,031,630. Staff further recommends that the City Council accept the proposals and authorize staff to issue a Purchase Order to PSOMAS in an amount not-to-exceed $306,422 for construction management and inspection services, JIG Consultants in an amount not-to-exceed $24,585 for continued

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

construction engineering support services, and The Converse Professional Group in an amount not-to-exceed $19,848 for materials and soils testing services.

Additionally, due to the unpredictable nature of underground sewer line work and the Project’s time-sensitive schedule, staff also recommends that City Council authorize the Director of Public Works a one-time change order authority of 20% of the construction contract amount for this project.

The Project will rehabilitate or replace aging pipes in the City that show signs of damage, such as sagging, misalignment, and leaks. These defects reduce capacity and increase the risk of blockages and overflows. If left unaddressed, these issues will worsen and could cause sewer spills, service disruptions, property damage, and higher emergency repair costs. This Project will help prevent these problems, improve system capacity in the Project areas, and maintain a reliable wastewater system.

The Project includes replacing approximately 875 linear feet of sewer pipe, installing approximately 1,390 linear feet of sewer pipe lining, constructing two new manholes, and abandoning one existing manhole. Construction is scheduled to begin in spring 2026 and is anticipated to be completed by fall 2026.

The 2025 Sewer Rehabilitation and Replacement Project is funded by the Sewer Fund. There is adequate funding in the FY2025/2026 adopted budget for this project.

DISCUSSION
The majority of the City of Fountain Valley’s (City) gravity sewer system was constructed in the 1960’s and 1970’s and is primarily constructed of vitrified clay pipe ranging from 6-inches to 24-inches in diameter. The City owns, maintains, and operates approximately 140 miles of sewer pipeline including 2,600 manholes, and conveys over 6 million gallons of wastewater to Orange County Sanitation District. The City’s sewer system serves approximately 9 square miles of residential and commercial areas.

To evaluate the condition and capacity of the sewer system, the City completed a Sewer Master Plan in 2007 and a subsequent Sewer Master Plan Supplement in 2013. The 2007 Plan used CCTV inspections to identify structural and capacity deficiencies and establish longterm capital improvements. The 2013 Supplement incorporated updated inspections, reassessed system deficiencies and risks, and updated the 15-year Capital Improvement Program (CIP). It also established a funding and rehabilitation strategy based on defect severity and risk to support improvements through 2028.

Due to the age and condition of the sewer system, many of the pipelines were identified for improvement that exhibit sagging, joint displacement, or infiltration that can restrict flow and increase the risk of blockages or sanitary sewer overflows. If rehabilitation or replacement work is deferred for extended periods, these deficiencies may worsen and potentially lead to sewer spills, service disruptions, property damage, and increased emergency repair costs. Timely implementation of the Project will help alleviate these risks and maintain the reliability of the City’s wastewater collection system.

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

The City’s Sewer Rehabilitation and Replacement Program has replaced approximately 6,750 LF of sewer pipe, installed approximately 5,400 LF of cured-in-place pipe (CIPP) liner, and rehabilitated approximately 165 manholes since 2008. The purpose of this Project is to continue the replacement and rehabilitation of existing structurally deficient sewer pipes throughout the City.

The Project includes full-length replacement of deteriorated sewer mains at five locations due to pipe sagging: Circulo de Villa Avenue (302 LF), Nightingale Avenue (150 LF), Mount Coulter Street (209 LF), Heil Avenue (21 LF), and Ward Street and Ellis Avenue (74 LF). In addition, four locations require segment (spot) repairs to address localized sagging and structural defects, including cracking, fractures, and voids. Segment repairs are a cost-effective solution to correct isolated deficiencies such as cracks, root intrusion, misaligned joints, and minor leaks. These locations include Newhope Street and Slater Avenue (10 LF), Apricot Circle (60 LF), Harbor Boulevard (30 LF), and Magnolia Street and Nightingale Avenue (10 LF).

The Project also includes installation of CIPP lining at five locations to rehabilitate damaged sewer mains: Harbor Boulevard (146 LF), Interstate 405 (952 LF), Fountain Valley Estates (32 LF), Magnolia Street and Nightingale Avenue (128 LF), and Magnolia Street and Warner Avenue (123 LF). Additionally, two new manholes will be constructed, and one existing manhole will be abandoned. Existing sewer laterals affected by construction will be reinstated to the sewer mains, and all pavement disturbed by construction will be fully restored upon completion of the work.

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

Procurement
On January 15, 2026, the City advertised Request for Bid (RFB) No. 25-010, Project No. 24042 2025 Sewer Rehabilitation and Replacement Project. On February 12, 2026, the City received five (5) bids, as shown below:

Contractor Total Bid Amount

1. CEM Construction Corporation

2. Armstrong Cal Builders Inc.

3. Shiraz Construction

4. Ramona Inc.

5. US Builders and Consultants Inc.

Engineer’s Estimate:
$2,031,630.00
$2,094,478.00
$2,613,810.00
$2,786,120.00
$2,999,870.00
$2,500,000.00
CEM Construction Corporation submitted the lowest responsive and responsible bid in the amount of $2,031,630 and met all City requirements and purchasing policies. The firm has successfully completed similar sewer rehabilitation and replacement projects for several Southern California municipalities.

On-Call Consultant Services
Due to the complex nature of this underground utility work, specialized consultant support will be required to assist City staff in managing the project. Construction of sewer infrastructure presents unique challenges because work often occurs with active sewer lines that must remain operational or require temporary bypass pumping while construction activities are underway. Maintaining continuous wastewater flow while performing repairs requires coordination, inspection, and adherence to safety protocols. Any failure in these temporary systems could result in sanitary sewer spills, which may have significant environmental, regulatory, and public health consequences. Additionally, delaying rehabilitation or replacement may worsen deficiencies and lead to sewer spills, sewer disruptions, and increased repair costs.

Therefore, onsite construction management and inspection, construction engineering support services, and materials and soils testing services will be critical to ensure successful Project completion. Staff intends to utilize the City Council-approved On-Call consultant lists and issue Purchase Orders administratively for these services.

Construction Management and Inspection Services
City staff solicited and received proposals from PSOMAS, Onward Engineering, TKE Engineering, Inc., and Willdan Engineering from the City’s approved On-Call consultant list.

Staff evaluated the proposals and recommends issuing a Purchase Order to PSOMAS in an amount not-to-exceed $306,422 for construction management and inspection services.

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

PSOMAS is an established civil engineering firm specializing in construction management and inspection services and maintains a strong professional reputation. PSOMAS previously provided construction management and inspection services for the City’s Mount Baldy Circle and Euclid Street Waterline Replacement Project, which was successfully completed on time and within budget.

Construction Engineering Support Services
On March 19, 2024, the City issued a Purchase Order under the City’s approved 2021 On-Call consultant list for Design Services with JIG Consultants in an amount not-to-exceed $268,470.

The Purchase Order authorized JIG Consultants to prepare a complete design bid package for the Project.

During the design phase, additional repair locations were identified through field investigations and incorporated into the Project scope. As a result, additional labor hours were required to finalize the design bid package. The level of effort needed to complete this work exceeded the original projections.

To ensure continuity and provide necessary support during construction, staff recommends issuing a Purchase Order under the City’s 2025 approved On-Call consultant list for Utility Design to JIG Consultants in an amount not-to-exceed $24,585 for continued construction engineering support services. These services will include reviewing contractor submittals, evaluating and responding to Requests for Information (RFIs), and preparing record drawings upon project completion. Retaining the Engineer-of-Record throughout the construction phase will help prevent delays and ensure timely technical support for the City and the construction manager.

Materials and Soils Testing Services
City staff solicited and received proposals from The Converse Professional Group and Ninyo & Moore Geotechnical and Environmental Sciences Consultants from the City’s approved OnCall consultant list for materials and soils testing services. Following a review of the proposals, staff recommends issuing a Purchase Order to The Converse Professional Group in an amount not-to-exceed $19,848 for materials testing services.

The Converse Professional Group has successfully provided materials and soils testing services for numerous capital improvement projects throughout Southern California. In addition, The Converse Professional Group submitted the lowest-cost proposal and maintains a strong professional reputation.

Change Order Authority
Due to the unpredictable nature of underground sewer line work and the Project’s timesensitive schedule, staff recommends that the City Council authorize the Director of Public Works to approve a one-time change order authority of 20% of the total construction contract amount. This additional change order authority will allow the City to minimize construction delays by promptly addressing unforeseen conditions, where often, time is of the essence.

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

FISCAL REVIEW
The current adopted FY2025/2026 budget includes sufficient funding for this project. This Project is funded by the Sewer Enterprise Fund. The budget and project expenses/costs are as follows:

FY2025/2026 Project No. 24042 Budget
Funding Source Project Budget Amount
Sewer Enterprise Fund $3,540,000
Total Budget $3,540,000
FY2025/2026 Project No. 24042 Expenses/Costs
Vendor/Item Amount
Construction (CEM Construction Corporation) $2,031,630
20% Contingency (CEM Construction Corporation) ^ $406,326 Construction Management and Inspection (PSOMAS) $306,422 Engineering Design Services (JIG Consultants)* $40,000
Construction Engineering Support Services (JIG
Consultants)
$24,585
Materials and Soils Testing (The Converse Professional
Group)
$19,848
Project Plans and Bid Document Printing Costs $3,000
Staff Time $20,000
FY25/26 Total Project Expenses/Costs $2,851,811
*JIG Consultants FY23/24 P.O. was for $268,470, with a FY25/26 P.O. carry over amount of $40,000 ^Note 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 to reduce the possibility of delay damages that could be incurred when a contractor must stop work and wait for authorization to proceed. However, due to the unpredictable nature of underground sewer line work and a time-sensitive schedule, City staff recommends that Council authorize the Director of Public Works a change order authority of 20% of the original contract amount for this project.

FY 2025/2026 Project No. 24042 Budget
Description Amount
Approved Project Budget Allocation $3,540,000
Project Costs ($2,851,811)
Remaining Project Budget $688,189

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

Construction Management and Inspection Services; PSOMAS (CON 1543) Total On-Call Contract for PSOMAS* $600,000.00
Construction Management and Inspection Expenditure – 2025 Sewer Rehabilitation and Replacement Project ($306,422)
Total Remaining in Contract $293,419
*Approved by City Council on February 18, 2025
Utility Design Services; JIG Consultants (CON 1564)
Total On-Call Contract for Utility Design for JIG Consultants* $600,000.00 Construction Engineering Support Services Expenditure – 2025 Sewer Rehabilitation and Replacement Project ($24,585.00)
Total Remaining in Contract $575,415.00
*Approved by City Council on April 15, 2025
Materials Testing Services; The Converse Professional Group (CON 1576) Total On-Call Contract for Materials Testing for The Converse Professional Group* $600,000.00
Materials Testing Expenditure – 2025 Sewer Rehabilitation and Replacement Project ($19,848.00)
Total Remaining in Contract $580,152.00
*Approved by City Council on April 15, 2025

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
The Attorney for the City has reviewed and approved the CEM Construction Corporation Contract for Project No. 24042 construction, PSOMAS Construction Management and Inspection Consultant Contract CON 1543, JIG Consultants Construction Engineering Support (Utility Design) Consultant Contract CON 1564, and The Converse Professional Group Materials and Soils Testing Consultant Contract CON 1576.

ALTERNATIVES
Alternative No. 1: Staff is recommending that the City Council:
1) Accept the bids and award a construction contract to CEM Construction Corporation for Project No. 24042, 2025 Sewer Rehabilitation and Replacement Project (Project), in the amount notto-exceed $2,031,630;

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

2) Accept the proposal from PSOMAS and authorize staff to issue a Purchase Order for the proposal amount of $306,422 for Construction Management and Inspection services for the Project;
3) Accept the proposal from JIG Consultants and authorize staff to issue a Purchase Order for the proposal amount of $24,585 for continued Construction Engineering Support services for the Project; 4) Accept the proposal from The Converse Professional Group and authorize staff to issue a Purchase Order for the proposal amount of $19,848 for Materials and Soils Testing services for the Project; and, 5) Approve the Director of Public Works to have a one-time 20% Change Order authority for this Project.

Alternative No. 2
1) Reject all bids and do not move forward with a contract; 2) Do not accept the proposal from PSOMAS and do not authorize staff to issue a Purchase Order for the proposal amount of $306,422 for Construction Management and Inspection services for the Project. 3) Do not accept the proposal from JIG Consultants and do not authorize staff to issue a Purchase Order for the proposal amount of $24,585 for Construction Engineering Support services for the Project. 4) Do not accept the proposal from The Converse Professional Group and do not authorize staff to issue a Purchase Order for the proposal amount of $19,848 for Materials and Soils Testing services for the Project.
5) Do not approve the Director of Public Works to have a one-time 20% Change Order for this Project.

This is not the recommended alternative as the Project is vital to replace and rehabilitate deficient pipes in the City’s sewer system. Additionally, staff would need to re-advertise new bids, which will likely result in higher-priced construction bids.

RECOMMENDATION
Staff is recommending that the City Council approve Alternative No. 1, which is to:
1) Accept the bids and award a construction contract to CEM Construction Corporation for Project No. 24042, 2025 Sewer Rehabilitation and Replacement Project (Project), in the amount not-to-exceed $2,031,630;
2) Accept the proposal from PSOMAS and authorize staff to issue a Purchase Order for the proposal amount of $306,422 for Construction Management and Inspection services for the Project;
3) Accept the proposal from JIG Consultants and authorize staff to issue a Purchase Order for the proposal amount of $24,585 for continued Construction Engineering Support services for the Project;
4) Accept the proposal from The Converse Professional Group and authorize staff to issue a Purchase Order for the proposal amount of $19,848 for Materials and Soils Testing services for the Project; and,
5) Approve the Director of Public Works to have a one-time 20% Change Order authority for this Project.

2025 Sewer Rehabilitation and Replacement Project
April 7, 2026

Support by: Terri Phan, Management Aide
Prepared by: Ryan Damon, Engineering Associate
Recommended by: Kyle Hilton, 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: CEM Construction Corporation Contract
Attachment 2: PSOMAS Construction Management and Inspection Proposal Attachment 3: JIG Consultants Construction Engineering Support Proposal Attachment 4: The Converse Professional Group Materials Testing Consultant Proposal

Attachment #1

5 Hutton Centre Drive
Suite 300
Santa Ana, CA 92707
www.Psomas.com

TASK ORDER PROPOSAL
FEBRUARY 23, 2026

CITY OF FOUNTAIN VALLEY
PROJECT NO. 24042 - 2025 SEWER REHABILITATION AND

REPLACEMENT PROJECT
Attachment #2

5 Hutton Centre Drive
Suite 300
Santa Ana, CA 92707
Tel 714.751.7373
www.Psomas.com
February 23, 2026
Temo Galvez, PE
Deputy Public Works Director/City Engineer
City of Fountain Valley
10200 Slater Avenue
Fountain Valley, CA 92708
Subject: Task Order Proposal: 2025 Sewer Rehabilitation and Replacement (Project Number 24042)
Dear Mr. Galvez:

Psomas is very pleased to resubmit this proposal to provide Construction Inspection services for City of Fountain Valley’s Project Number 24042. Based on our knowledge of the locations and the information presented to us, we have developed the attached Scope of Services to meet the project requirements, as we understand them.

Our Scope of Services and Project Approach and Understanding are provided as “Exhibit A”, along with the Schedule of Fees as “Schedule A”. The overtime/night work rate will be 1.2 times the regular rate. Should you have any questions regarding these materials, please give us a call.

My contact information is as follows:

Brett Barnett, PE, CCM, QSD, Vice President/Principal
5 Hutton Centre Drive, Suite 300, Santa Ana, CA 92707
Cell: (949) 246-4472 | Email: [email protected]
We look forward to working with you on this important project.

Sincerely,
Brett Barnett, PE, CCM, QSD
Vice President/Principal

Exhibit A - Scope of Services/Project Understanding
and Approach
City of Fountain Valley
As-Needed Project Management/Construction Oversight Services Task Order Proposal:
2025 Sewer Rehabilitation and Replacement Project No. 24042

PROJECT NO. 24042 - 2025 SEWER REHABILITATION AND REPLACEMENT – CITY OF FOUNTAIN VALLEY 1 PROJECT UNDERSTANDING
Psomas is committed to providing a highly qualified team of professionals for the construction management support of PROJECT NO. 24042 - 2025 SEWER REHABILITATION
AND REPLACEMENT project. The scope of the project
includes rehabilitation and replacement of existing sewers at multiple locations in the City of Fountain Valley. The work includes segment repairs, removal and replacement, and cured-inplace lining to existing sewers. Additionally, existing sewer laterals will be reconnected to the new sewer mains and new manholes will be constructed.

PROJECT TEAM ORGANIZATION
As the prime consultant, Psomas will be responsible for all aspects of the team’s performance. Abdul (Mohammed) Khan, PE, our Construction Manager, will be the primary point of contact andwill coordinate all aspects of the project with Mr. Kyle Hilton and Ryan Daymon, Project Managers for City of Fountain Valley (COFV), supported by highly experienced professionals in technical and support roles. Construction Inspection, Quality Assurance, Labor Compliance, and monitoring and reporting activities will be overseen by specialists familiar with sewer construction and will confirm that project delivery, budget, schedule, and overall quality procedures meet the highest standards required by the City.

FIELD OFFICE:

As a majority of the work is in active/live streets, the field personnel will be on site and would share the field office when provided by the contractor.

UNIQUE CHALLENGES
The most critical challenge facing this project is constructability and staging. Following is a list of issues we foresee for this project:
a) Traffic Control and safety
Use of existing width of the streets and maintaining
uninterpreted flow of traffic. Additionally, for major
intersections at Ellis/Ward and Talbert/Coulter, we strongly recommend the contractor be directed in the special
provisions to tunnel (jack and bore) as this would avoid traffic impacts and construction delays due to traditional trench/excavation method with limited working area, high groundwater, limited availability of minimal to no staging area next to the work area, and for safety of travelling public. b) Keeping active sewer services to the businesses and
residents.

With active bypass and highline systems the service will be kept active with minimal disruption.
c) Dewatering.

Based on our experience with the City’s HSIP project, it is anticipated that groundwater will be intercepted at a depth of 5’-8’ (even though Special Provisions state a depth of 0’-5’).

With the open trench method and active traffic control, it will be challenging for the contractor to find staging areas for Baker tanks and to draw down the groundwater. However, we suggest that the contractor investigate the level of groundwater and then open the trench for work.
d) Contract Working Days.

The suggested 110 working days are very aggressive, and we suggest increasing the number of working days to 150.

Psomas would segregate the contract management services in three sequential phases

1. Pre-construction Phase

2. Construction Phase

3. Post-Construction Phase
Approach to Accomplish the Work During PreConstruction Phase Key Project Issues and Objectives
Pre-Construction Reviews:
 Review of contract plans, specifications, and material information for the project and field review the project along with the contractor prior to start of construction.

Review all submittals, not limited to:
 Health and Safety Plan
 Trenching and Shoring Plans
 Traffic Control and Contingency Plans
 Dewatering Plan
 Communication Plan
 Safety and Security Management Plan
 QC/QA
 Public Outreach Plan
Construction Risk Analysis
 Identify risks
 Risk Metrics: (Cost, Time, functional impact)
Risk Management Registry.
 Our approach: identify, analyze, plan, monitor, and report (on risk throughout the course of the project).

Pre-Construction Schedule:
 Develop an independent comprehensive project baseline schedule (P6).
 Identification of project critical path vs. contractor’s schedule.

Name/Firm Role (Availability)
Abdul M Khan, PE, Psomas
Years (Total /Firm): 40/8
Construction Manager, Task Order
Manager (50%)
Samson Engeda, PE, SE, SKS
Years (Total /Firm): 30
Structural Engineer, (25%)
Zain Batta, PSOMAS
Years (Total /Firm):

Field Inspector, Traffic Control, Sewer
Construction (100%)
Bob Duffy, PSOMAS
Years (Total /Firm):

Water/Wastewater Inspector (20%)
Andrew Soria, ZTC
Years (Total /Firm):

Water/Wastewater Inspector,
Certified Welding Specialist (50%)
Sophia E, LC PM
Years (Total /Firm):

Labor Compliance Project Manager
(20%)
Saeid Asgari, PE, CQMS
Years (Total /Firm):

Quality Assurance Material
Testing (25%)
Administrative Assistant,
PSOMAS Years (Total /Firm):

Document Control/Admin
Assistant/Labor Compliance (100%)
Project Understanding and Unique Challenges
Project Approach andStrategy

PROJECT NO. 24042 - 2025 SEWER REHABILITATION AND REPLACEMENT – CITY OF FOUNTAIN VALLEY 2 The schedule will identify:
 Resources
 Cost
 Logical sequence and critical path for the project
 Construction staging and constraints
A Strong Communication Plan is Critical to
Contract/Project Success.
 The Psomas Team will be using the Virtual field office (PROCORE Platform) to document and report (prior to
end of work shift) all construction progress, issues,
quality assurance, equipment and labor (Daily Inspection Diaries).

Approach to Accomplish the Work during Construction Phase Key Project Issues and Objectives
Pre-Construction Conference: The Psomas Team will
facilitate a pre- construction conference with the City Engineer, City Project Managers, Stakeholders, Resident Engineer and Contractor/Sub-Contractor staff. All internal and external stakeholders will be invited to exhort the salient features and constraints for the project during the construction phase.
 Project Organization, Key personnel
 Project Safety
 Project correspondence and document control
 Labor Compliance
 Contractor laydown area and haul roads
 Schedule (CPM + 3 week look ahead)
 Partnering
 Bi-Weekly progress meeting
 Field Office
 Work Windows and Constraints
 Inspection and Acceptance
 QC/QA
 Traffic Control
 Submittals and RFIs
 Change Management
 Progress payment
 Claims
 Punch list
 Completion of work, final payment, and closeout
procedures
Effective Partnering: We will partner with all project
stakeholders; primarily, City of Fountain Valley, contractor, and other affected regional and resource agencies (as
necessary) and stakeholders.

Safety: A Safety and Security Management Plan will be
formulated establishing procedures to verify that the
contractor’s field staff and COFV staff will build, install, inspect, and test all the project improvements, in accordance with project specifications and standards. Safety, Security and Emergency rules and procedures will be developed and
followed.

Storm Water Pollution Prevention Plans (SWPPP) and
Environmental Compliance:
 Adhere to Regional Water Quality permit requirements.

Schedule Budget Performance: We will achieve on schedule and within budget delivery by implementing a well-established Management Plan with details on the procedures for planning and coordinating all tasks, reports, deliverables, and cost and schedule management processes.

Bi-Weekly Construction Progress Meetings: Psomas’ RE will conduct bi-weekly construction meetings with the contractor staff and the City. The main goal of these meetings will be to assess:
 Project progress
 Potential delays
 Schedule updates
 Material and work acceptance/rejection
 Potential conflicts
 Change orders (CO)
 Potential Claims
 Safety issues, and public complaints
Document Management & Control: Psomas will utilize the
City’s standard for document control and filing procedures.

Psomas will implement its Virtual Field Office software (with PROCORE Platform) for all electronic filing and project staff access control. The field staff will be equipped with smart phones and tablets to record the project’s progress. Some of the virtual reports generated will include:
 RE’s weekly reports
 Project monthly statusreport
 Field staff’s report
 Weekly Statement of Working Days
 Agenda and Minutes of the meeting
 Safety diaries
 Accident reports
 QC/QA test results
 Material Certificates/Releases
 Photographs
 Monthly Pay Estimates
 Quantity Estimate backup sheets
 Change Orders
 RFIs and Submittals response within five (5) working days Zero Claims: We will create a resolution ladder as part of our partnering process that includes all stakeholders.
 Resolve issues at the lowest level possible and
escalate unresolved issues to higher levels within
timelines
 Goal is to achieve a claim-free project
Change Management and Change Orders: The Psomas Team
understands that, due to differing field conditions, sub-surface differing site conditions, errors and omissions, and other constraints could result in change orders.
 Keep the number of change orders to aminimum
 Changes in the field will be first discussed with the City PM, estimated cost and potential delays assessed, prior approvals documented, design compliance checked, all concurrences from the City Project Manager and Design Engineer are
received, potential change orders initiated and approvals taken before a Notice to Proceed is issued to the contractor.  Psomas will encourage the contractor to propose a Cost Reduction Incentive Proposal (CRIP) or Value Engineering Cost Proposal (VECP).
 Contingency Log
 Change order log
 Independent Extra Work @ Force Account Analysis