In April 2026, the Southern California Association of Governments (SCAG) confirmed the award of $2.64 million in grant funding for the Rehabilitation and Resurfacing of Talbert Project.
The Rehabilitation and Resurfacing of Talbert Project budget included $1.1 million of General Fund and $1.275 million of SB1 funds. Having received the SCAG award, staff intends to reallocate those funds to Project No. 27002 to capitalize on the opportunity to complete additional paving for two (2) residential quadrants.
Quadrant B5 and quadrant B6 were identified by staff for the FY2026/2027 Residential Roadway Rehabilitation Design. These quadrants were selected based on the City’s Pavement Management Plan (PMP) and Staff’s knowledge and assessment of the City’s residential roadway conditions. The project scope for both quadrants will include asphalt rehabilitation and improvements for deficient curbs, gutters, parkways, and non-ADA-compliant sidewalks and curb ramps.
PROCUREMENT
City staff solicited and received four (4) proposals from the On-Call consultant list for roadway design services for the Design of Residential Roadway Rehabilitation Project (City Quadrant B5 and B6), Project No. 27002. The proposal costs are listed in the table below.
Consultant Proposal Cost
DMS Consultants, Inc. $101,500
Onward Engineering $102,055
AZTEC Engineering Group, Inc.
*AZTEC has been acquired by TYPSA
$106,490
Kabbara Engineering $137,920
After evaluating the four (4) submitted proposals, DMS Consultants, Inc. was determined to be the most qualified firm based on its previous project experience. DMS Consultants, Inc also provides exceptional value, as its proposal included the lowest cost. DMS Consultants, Inc is a reputable civil engineering firm that is well-versed with the scope of the work and has completed the designs of quadrants D1, D2, D3, D7, E1, F1, H1, J1, J2, C3, E7, and B4 for the City of Fountain Valley. As such, City staff is requesting City Council to accept DMS Consultants, Inc.’s proposal and authorize staff to issue a purchase order for design services.
DMS Consultants, Inc. has an active consultant services contract as one of the City’s prequalified on-call design consultants. However, this item is brought before the City Council for consideration and approval, as the proposed cost exceeds $100,000.
FISCAL REVIEW
The current proposed FY2026/2027 budget includes sufficient funding for the project. The budget allocations and project expenses/costs are as follows:
DMS Consultants, Inc. - Residential Roadway Rehabilitation Project (City Quadrant B5 and B6) July 14, 2026
Project Funding Source
Adopted FY2026/2027 Budget (Funding Source: Gas Tax) $105,000.00 Total Budget $105,000.00
DMS Consultants, Inc. CON 1524
Original Contract Amount $600,000.00
Expenses and Encumbrances to Date ($131,599.50)
Design Services for Project 27002 Residential Roadway
Rehabilitation Project (City Quadrant B5 and B6)
$101,500.00
Total Remaining Contract $366,900.50
PUBLIC NOTIFICATION
Not applicable.
ENVIRONMENTAL IMPACT REVIEW
Not applicable.
ATTORNEY REVIEW
The Attorney for the City has reviewed and approved the DMS Consultants, Inc. As-Needed On-Call Roadway Design Services Contract.
ALTERNATIVES
Alternative No. 1: Accept the DMS Consultants, Inc. Fee Proposal and authorize staff to issue a purchase order for the design of the Residential Roadway Rehabilitation Project (City Quadrant B5 and B6), Project No. 27002, in the amount not to exceed $101,500.
Alternative No. 2: Reject the proposal and do not move forward with issuing the Purchase Order.
This is not the recommended alternative as the scope of work proposed is needed to rehabilitate the aging residential street network. DMS Consultants, Inc. is a highly qualified firm that has extensive experience working on Residential Roadway Rehabilitation Projects with the City of Fountain Valley. In addition, DMS Consultants, Inc’s proposal is comprehensive and competitively priced.
RECOMMENDATION
It is recommended that the City Council approve Alternative No. 1, which is to:
1) Accept the DMS Consultants, Inc. Fee Proposal and authorize staff to issue a purchase order for the design of the Residential Roadway Rehabilitation Project (City Quadrant B5 and B6), Project No. 27002, in the amount not to exceed $101,500.
DMS Consultants, Inc. - Residential Roadway Rehabilitation Project (City Quadrant B5 and B6) July 14, 2026
Prepared by: Peter Nguyen, Engineering Technician II
Recommended by: Jessenia Penaloza, Assistant Engineer
Reviewed by: Kyle Knoke, P.E., Senior Civil 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: DMS Consultants, Inc. Proposal
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: July 14, 2026
Members of the City Council
SUBJECT: 1) Authorize staff to issue a purchase order to National Auto Fleet Group, pursuant to FVMC 2.36.070 (a) (4), for the purchase of a new 2027 Ford F-450 Flatbed Dump Truck for $115,296.83 through the existing cooperative contract with Sourcewell; and
2) Authorize staff to dispose of the existing vehicles by means that best meet the City’s needs
Three-Year Strategic Goals
Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live.”
Ensure long-term 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 Water Distribution Division in Public Works relies on a specialized vehicle fleet to maintain daily City operations and service. There is a need to replace an outdated, heavy-duty Ford flatbed dump truck that has reached the end of its useful life. To avoid operational impacts, staff have identified an opportunity to secure a new Ford flatbed dump truck through an existing Sourcewell contract. This ensures the City maintains essential fleet capacity at efficient operational levels. The outdated vehicle will be scheduled for auction shortly after the new truck arrives.
The FY 2026/27 budget allocates $120,000 from the Water Fund to the Fleet Management Fund – Public Works, ISF – Fleet Capital – PW, Trucks/Vans account 112.50.50052.55545 for the purchase of a new 2027 Ford F-450 flatbed dump truck. The total cost of purchasing the Ford F-450 flatbed dump truck, using the existing Sourcewell cooperative contract with National Auto Fleet Group, is $115,296.83. Therefore, there are sufficient funds to purchase the requested vehicle.
Purchase of 2027 Ford F-450 Flatbed Dump Truck
July 14, 2026
DISCUSSION
The City of Fountain Valley Public Works Water Distribution Division maintains a vehicle fleet to support its daily operational needs. The division's sole heavy-duty flatbed dump truck, Unit #8921 (a 2005 Ford F-350), is nearly 22 years old and has far surpassed its useful service life.
The standard replacement cycle established by the City for this vehicle class is 15 years. After more than two (2) decades of demanding operational service transporting heavy materials— including asphalt, dirt, concrete, and excavation spoils—the vehicle has sustained severe structural wear. Corrosion has created holes in the truck bed, causing active leaks that pose safety risks and can spill material onto public roadways during transport. Unit #8921 is now deteriorating, increasingly unreliable, and no longer cost-effective to maintain. Furthermore, the vehicle lacks modern, industry-standard safety and operational features equipped with the rest of the City's current fleet, such as a backup camera, hands-free Bluetooth connectivity, and GPS navigation.
To maintain essential fleet capacity, staff utilized a competitively bid Sourcewell cooperative purchasing agreement to secure pricing for a new 2027 Ford F-450 flatbed dump truck from National Auto Fleet Group.
Procuring this specialized vehicle through the City's Enterprise Fleet Management program is not feasible. Enterprise cannot accommodate the highly specific production requirements, heavy-duty outfitting, and custom specifications required for Water Distribution operations.
Utilizing the Sourcewell cooperative contract allows the City to efficiently procure the needed vehicle while ensuring compliance with municipal purchasing guidelines. Upon City Council approval and receipt of the purchase order, the vehicle will enter production with an estimated delivery window of 180 to 200 days.
The purchase of the new truck supports the City’s strategic goals of maintaining, building, and modernizing infrastructure to support growth and the City's future needs, and of attracting and retaining quality staff. Replacing damaged and/or worn-out vehicles decreases vehicle downtime, increases fleet reliability, and enhances employee safety. New vehicles and the modern equipment they are outfitted with provide Water Distribution staff with the tools they need to continue effectively maintaining the City’s water infrastructure to support current and future needs.
PROCUREMENT
Fountain Valley Municipal Code (FVMC) Contracting Procedures include a bid exception provision [§2.36.070(a)(4)] that allows bidding to be dispensed with when participating in a cooperative contract with another government agency. The recommended purchase is through an existing cooperative contract with Sourcewell.
Sourcewell combines the buying power of 50,000 government, education, and nonprofit organizations through nationally competitively solicited cooperative contracts. Cooperative purchasing is “Procurement conducted by, or on behalf of, one or more Public Procurement Units” as defined by the American Bar Association Model Procurement Code for State and Local Governments. Sourcewell’s rigorous process streamlines the procurement process by developing Invitations for Bids and Requests for Proposals for national, competitive solicitations that meet or exceed local requirements. Sourcewell’s cooperative purchasing Purchase of 2027 Ford F-450 Flatbed Dump Truck
July 14, 2026
program manages solicitation requirements and provides members with easy access to an established network of awarded contracts. Sourcewell membership is free to the City; there is no cost, fee, or obligation to join or use their contracts.
Sourcewell issued a Request for Proposals (RFP) in June 2025 for the procurement of Automobiles, SUVs, Vans, and Light Trucks with related equipment and accessories. The RFP was publicly advertised, and 61 proposals were received in August 2025. Evaluators reviewed the proposals based on six criteria, with pricing being the most heavily weighted. Based on that evaluation process, Sourcewell awarded a cooperative contract (Contract #081325-NAF) to National Auto Fleet Group. The City can utilize this cooperative contract to purchase the 2027 Ford F-450 flatbed dump truck at a competitive price in compliance with the City’s purchasing policy.
FISCAL REVIEW
This purchase was originally funded in the FY 2025/26 adopted budget. The FY 2026/27 budget update to City Council includes an appropriation to reallocate a total of $120,000 from the Water Fund to the Fleet Management Fund – Public Works, ISF – Fleet Capital – PW, Trucks/Vans account 112.50.50052.55545 for the purchase of a new 2027 Ford F-450 flatbed dump truck. Therefore, there is sufficient funding for this purchase. The total cost of the vehicle, utilizing the existing Sourcewell cooperative contract with National Auto Fleet Group, Inc., is $115,296.83.
FY 2026/27 Budget for Flatbed Dump Truck (112.50.50052.55545) $120,000.00 2027 Ford F-450 Flatbed Dump Truck – Qty. 1 $115,296.83
PUBLIC NOTIFICATION
Not applicable.
ENVIRONMENTAL IMPACT REVIEW
Not applicable.
ATTORNEY REVIEW
This does not require review or approval by the Attorney for the City. This action will be issued on a City approved purchase order form that provides standard terms and conditions which have been approved by the Attorney for the City.
ALTERNATIVES
Alternative No. 1: 1) Authorize staff to issue a purchase order to National Auto Fleet Group, pursuant to FVMC 2.36.070 (a) (4), for the purchase of a new 2027 Ford F-450 flatbed dump truck for $115,296.83 through the existing cooperative contract with Sourcewell; and 2) authorize staff to dispose of the existing vehicle by means that best meet the City’s needs.
Alternative No. 2: Do not approve the proposal to purchase the new 2027 Ford F-450 flatbed dump truck through the existing cooperative contract and direct staff to obtain multiple quotes for the vehicle. This option is not recommended, as Purchase of 2027 Ford F-450 Flatbed Dump Truck
July 14, 2026
the cost under the cooperative contract is competitive, and leveraging national bulk buying power provides the best value to the City. All Sourcewell contracts have been competitively solicited nationally and save considerable staff time and effort over individual requests and specifications with various vendors to meet our procurement needs.
Alternative No. 3: Do not authorize the purchase of the new 2027 Ford F-450 flatbed dump truck vehicle at this time, and direct staff to return at a future date with an update on the condition of the existing vehicle. This option is not recommended, as the current vehicle is past its scheduled replacement date and must be replaced to ensure that the fleet continues to meet the City’s operational needs.
RECOMMENDATION
Staff is requesting that City Council approve Alternative No. 1, which is to 1) authorize staff to issue a purchase order to National Auto Fleet Group, pursuant to FVMC 2.36.070 (a) (4), for the purchase of a new 2027 Ford F-450 flatbed dump truck for $115,296.83 through the existing cooperative contract with Sourcewell; and 2) authorize staff to dispose of the existing vehicle by means that best meet the City’s needs
Prepared by: Cassandra Burkart, Management Aide
Reviewed by: Mark Sprague, Field Services Manager
Approved by: Scott Smith, Director of Public Works
Fiscal review by: Ryan Smith, Finance Director / City Treasurer Attorney review by: Colin Burns, Attorney for the City Approved by: Maggie Le, City Manager Attachment:
1. Quote – National Auto Fleet Group
Attachment #1
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Attachment #1
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CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: July 14, 2026
Members of the City Council
SUBJECT: Award a contract to Pacific Sound Control, a CE Pickup Company, in the amount of $110,618 to replace the existing operable wall panels at The Center at Founders Village Senior & Community Center
Three-Year Strategic Goals
Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live.”
Ensure long-term 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 is requesting that the City Council award a contract to Pacific Sound Control, a CE Pickup Company, in the amount of $110,618 to replace the existing operable wall panels at The Center at Founders Village Senior & Community Center.
The existing panels have been in use since The Center at Founders Village Senior & Community Center (Senior Center) was built over 20 years ago. Based on the age of the panels, the lack of replacement parts, and their daily usage, Public Works and Community Services staff believe that it is in the best interest of the City to replace them before a mechanical failure creates a safety hazard or disrupts the many uses of Halls A, B, and C.
If City Council approves the replacement of the panels at the Senior Center, the purchase will be expensed to the Government Buildings Fund – Recreation & Community Services Department – ISF GB Capital R&C – Furniture and Fixtures account that is funded by the General Fund. While $60,000 was set aside in FY 2025/26 in the Government Buildings Fund to partially cover this $110,618 project, the project cannot be completed this fiscal year. In July, staff will request City Council approval to roll over the $60,000; the remaining $50,618 will be funded through FY 2025/26 year-end savings and reprioritized FY 2026/27 project allocations.
Replace Operable Wall Panels at Senior Center
July 14, 2026
DISCUSSION
Over 20 years ago, the Senior Center opened its doors to the Fountain Valley community.
Since then, the Senior Center has hosted a wide variety of events and activities for seniors and the general public, including clubs, classes, congregate nutrition programs, themed senior lunches, voting, dances, community fundraisers, town hall meetings, and special event rentals.
All these activities are made possible by the flexibility of Halls A, B, and C, which can be used as one (1) large space or divided into smaller rooms using two (2) sets of operable wall panels.
The existing panels have been in use since the Senior Center was built over 20 years ago.
They are moved multiple times a day to accommodate the needs of various user groups. As the panels age, staff are encountering more challenges keeping them fully functional. When the panels do not operate properly, they become difficult to maneuver and cause damage to the flooring. Unfortunately, the original manufacturer is no longer in business, and replacement parts are unavailable. Therefore, Public Works and Community Services staff believe it is in the best interest of the City to replace the operable wall panels before a mechanical failure creates a safety hazard or disrupts the many uses of Halls A, B, and C.
Public Works staff issued a comprehensive Invitation for Bids (IFB) on April 6, 2026, detailing the scope of work for replacing the operable wall panels at the Senior Center. The City received five (5) bid inquiries. A mandatory pre-bid meeting was conducted on April 15, 2026, with only two (2) of the five (5) interested vendors in attendance. The City received one (1) official bid by the response deadline of April 27, 2026, from Pacific Sound Control, a CE Pickup Company, the sole responsive and responsible bidder.
To ensure pricing competitiveness, staff conducted a market analysis by comparing the proposed Senior Center project with a similar project recently executed at the City of Yucaipa’s Scherer Center. This project was competitively bid and awarded on June 8, 2026, with one (1) formal bid received. A review of the contract agreement and quotation for that project confirms that the operational and material requirements match. While the Yucaipa project totaled 656 square feet at a unit cost of $106.50 per square foot, the Senior Center project encompasses a larger area of approximately 1,100 square feet at a reduced rate of $100.56 per square foot.
This reflects a 5.5% cost reduction per square foot for the City. Staff have verified that Pacific Sound Control's proposed pricing is reasonable and at a competitive value for the City Staff recommend awarding a contract to Pacific Sound Control, a CE Pickup Company, in the amount of $110,618 based on the lowest responsive, responsible bidder standard of award.
The lead time for the operable wall panels is 4–6 weeks for parts delivery, and installation is slated for the week of December 14, 2026. The Senior Center will be closed from December 14, 2026, through January 1, 2027, so this is the best time to complete the project.
Replacing the operable wall panels supports the City’s strategic goal of maintaining, building, and modernizing infrastructure to support the growth and future needs of the City.
Replace Operable Wall Panels at Senior Center
July 14, 2026
FISCAL REVIEW
Staff has included $124,000 in the FY 2026-27 Government Buildings Fund for the Recreation & Community Services Department – ISF GB Capital R&C – Furniture and Fixtures account (111.80.80051.55502) for replacement of the operable wall panels. The opening bid for the wall panels was $96,615. However, after selecting the trimless finish, this brought the total contract cost to $110,618, inclusive of sales tax and prevailing wages. Due to the parts being sourced from Canada and subject to fluctuating tariff fees, staff recommends establishing a contingency of approximately 20%, up to a not-to-exceed amount of $22,000. This contingency will cover unforeseen tariff charges and minor product adjustments, and it will only be expended if actual tariff or adjustment costs arise based on the final ordering timeline.
Therefore, sufficient funds are available in the FY 2026-27 budget to complete this procurement.
PUBLIC NOTIFICATION
Not applicable.
ENVIRONMENTAL IMPACT REVIEW
Not applicable.
ATTORNEY REVIEW
The Attorney for the City has reviewed and approved the contract.
ALTERNATIVES
Alternative No. 1: Award a contract to Pacific Sound Control, a CE Pickup Company, in the amount of $110,618 to replace the existing operable wall panels at The Center at Founders Village Senior & Community Center.
Alternative No. 2: Do not authorize the replacement of the existing operable wall panels at the Senior Center at this time and defer and direct staff to return at a future date with an update on the condition of the existing operable wall panels.
This is not recommended as the existing operable wall panels are over 20 years old, the manufacturer is no longer in business, and replacement parts are not available. If the existing operable wall panels become inoperable, it will negatively impact the wide variety of events and activities that are scheduled in Halls A, B, and C, including special event rentals.
RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1 to award a contract to Pacific Sound Control, a CE Pickup Company, in the amount of $110,618 to replace the existing operable wall panels at The Center at Founders Village Senior & Community Center.
Prepared by: Cassandra Burkart, Management Aide Reviewed by: Mark Sprague, Field Services Manager Replace Operable Wall Panels at Senior Center
July 14, 2026
Approved by: Scott Smith, Director of Public Works
Fiscal review by: Ryan Smith, Finance Director / City Treasurer . Attorney review by: Colin Burns, Attorney for the City Approved by: Maggie Le, City Manager
Attachment:
1. Contract
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: July 14, 2026
Members of the City Council
SUBJECT: City Hall Improvements – Lobby Restrooms Project 1) Accept the bids and award a construction contract to KNM Design Build LLC (dba NM Building Group) for Project No. 24004, City Hall Improvements – Lobby Restrooms, in the amount not-to-exceed $304,615; and 2) Accept the Interwest Consulting Group proposal and authorize staff to issue a Purchase Order in the amount not-to-exceed $55,440 for Construction Management and Inspection services for the City Hall Improvements – Lobby Restrooms Project.
Three-Year Strategic Goals
Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live.”
Ensure long-term 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, plan for, and modernize infrastructure to support the growth and future needs of the City.
Not applicable.
EXECUTIVE SUMMARY
Staff recommends City Council accept the bids and award a construction contract to KNM Design Build LLC (dba NM Building Group) for Project No. 24004, City Hall Improvements – Lobby Restrooms, in the amount not-to-exceed $304,615. Staff also recommends that the City Council accept the proposals and authorize staff to issue a Purchase Order to Interwest Consulting Group in an amount not-to-exceed $55,440 for construction management and inspection services for the City Hall Improvements – Lobby Restrooms Project. In summary, the total project construction cost is projected to be $422,550, including the construction contract cost, a 15% construction contingency, construction management and inspection services, construction as-builts, and construction document printing.
The base bid for the City Hall Improvements – Lobby Restrooms Project consists of interior improvements to the lobby restrooms, including demolition, plumbing, mechanical, and
City Hall Improvements – Lobby Restrooms/KNM Design Build LLC July 14, 2026
electrical modifications, new finishes, and other miscellaneous improvements. The existing lobby restrooms currently do not meet Americans with Disabilities Act (ADA) standards. Per the California Building Code, ADA improvements must be made before any other improvements can proceed within City Hall.
This project also included alternate bid items for the public counters/lobby remodel, installation of public counter bullet-resistant glass, conference room remodel, and interior improvements to the Human Resources Department area. Although none of the alternate bid items are recommended for award, City staff can negotiate costs for one or more of the alternate bid items during the course of the project. Should City Council wish to move forward with an alternate, City Staff will present the alternate bid item(s) to the City Council at a future date.
Construction of the Lobby Restrooms Project is anticipated to begin in Summer 2026 and be completed by Winter 2026/2027. The construction of this project is funded by the General Fund. There is adequate funding within the proposed FY2026/2027 budget for this project.
DISCUSSION
The scope of work for the base bid of the FY 2026/2027 City Hall Improvements – Lobby Restrooms Project will consist of the following tasks:
ADA improvements, such as providing proper clearances, installation of ADA-compliant door hardware, installation of ADA-compliant restroom stalls, etc.; Demolition, such as flooring, ceiling, countertop, and toilet removal; Plumbing, such as removal and reconnection of piping to new ADA-compliant fixtures; Electrical Modifications, such as installation of proposed lighting; New Finishes, such as ceiling, flooring, toilet partitions, and countertops; Other Miscellaneous Improvements, such as replacing accessories and mechanical work.
The City Hall Improvements – Lobby Restrooms Project will improve City Hall Public Restrooms to comply with ADA standards. ADA improvements are required prior to completing any other improvements in City Hall per California Building Code. As such, Staff strongly recommends prioritizing this facility improvement. These improvements will benefit the public and residents who use the restrooms on a daily basis.
This project includes alternate bid items for the following:
Alternate 1 Public Counters/Lobby Remodel – The work consists of interior improvements to the Public Lobby Area, including demolition, mechanical, electrical, and fire life safety modifications, new counters, finishes, and other miscellaneous improvements required.
Alternate 2 Public Counter Bullet Resistant Glass – The work consists of installing bulletresistant glass to the Public Lobby Counters.
Alternate 3 Conference Room Remodel – The work consists of interior improvements to the conference room, including demolition and electrical modifications, new finishes, and other miscellaneous improvements.
Alternate 4 Human Resources Remodel – The work consists of interior improvements to the Human Resources Area, including demolition, mechanical, electrical, and fire life safety modifications, new finishes, and other miscellaneous improvements.
City Hall Improvements – Lobby Restrooms/KNM Design Build LLC July 14, 2026
If the City Council wishes to choose any of the alternates, City staff can negotiate cost during the project and present the alternate bid item(s) to the City Council at a future date.
PROCUREMENT
On January 15, 2026, the City publicly advertised Request for Bid (RFB) No. 25-008, City Hall Improvements – Lobby Restrooms Project No. 24004. On February 12, 2026, the City received the following twenty-two (22) bids, which reflect the total base bids amounts, total Alternates 1 through Alternate 4 amounts, and total of base bids with Alternate 1 through Alternate 4 amounts from each bidder:
Contractor
Total
Base Bids
Total
Alternates
#1-4
Total
Base + Alternates
1. KNM Design Build LLC
(dba NM Building Group)
2. Oppenheimer National
3. Deeb Construction Inc.
4. Empire Design & Build
5. A2Z Construct Inc.
6. YMC
7. Triangle DeCon Services, Inc.
8. R Dependable Construction Inc.
9. Bridgerock Construction Inc.
10. Keystone Builders, Inc.
11. Foxtrot Construction Inc.*
12. Dalke & Sons Construction, Inc.
13. Shiraz Construction
14. JSB Builders
15. Global Builders Inc.*
16. Ambit Construction and Design, Inc.
17. Premo Construction Inc.
18. Metro Builders & Engineers Group, Ltd.
19. MLC Constructors Inc.
20. Jermax Construction Inc.
21. JR Universal Construction, Inc.
22. ZZ Construction
Engineer s Estimate Base Bid: ’
$304,615.00
$343,150.00
$345,000.00
$350,000.00
$357,000.00
$369,000.00
$374,000.00
$389,600.00
$396,850.00
$399,999.00
$410,275.64
$419,390.00
$424,444.00
$437,458.00
$448,888.00
$456,702.00
$467,300.00
$484,700.00
$502,899.00
$510,000.00
$588,700.00
$687,000.00
$450,000.00
$1,090,652.00
$743,600.00
$462,000.00
$1,000,000.00
$506,000.00
$1,156,000.00
$730,000.00
$666,745.00
$916,000.00
$1,088,298.00
$0
$720,565.00
$1,010,000.00
$1,026,236.00
$0
$905,317.00
$1,020,000.00
$562,520.00
$880,850.00
$413,000.00
$1,283,859.00
$1,297,000.00
$1,395,267.00
$1,086,750.00
$807,000.00
$1,350,000.00
$863,000.00
$1,525,000.00
$1,104,000.00
$1,056,345.00
$1,312,850.00
$1,488,297.00
$410,275.64
$1,139,955.00
$1,434,444.00
$1,463,694.00
$448,888.00
$1,362,019.00
$1,487,300.00
$1,047,220.00
$1,383,749.00
$923,000.00
$1,872,559.00
$1,984,000.00
*Disqualified bids due to incomplete submittal of bid package The instructions in the RFB No. 25-008 document require bidders to submit alternate bids in addition to their base bids for the bid package to be deemed complete. Both Foxtrot Construction Inc. and Global Builders Inc. failed to submit bids for alternate bid items, and thus were disqualified.
Contracts are awarded based on the lowest responsible and responsive base bid. KNM Design Build LLC (dba NM Building Group) was the lowest responsive and responsible bidder, submitting a base bid in the amount of $304,615.00 and a base bid plus alternate bids in the amount of $1,395,267.00. KNM Design Build has completed similar improvement projects for various Southern California agencies, including the San Bernardino City Unified School District City Hall Improvements – Lobby Restrooms/KNM Design Build LLC July 14, 2026
and the Downey Unified School District. Additionally, all referenced agencies recommended the contractor, noting that KNM Design Build demonstrated reliability and excellence in workmanship during construction.
On-Call Consultant Construction Management and Inspection Services Due to the complexities of improvement projects in the municipal facilities, construction management and inspection services is recommended on this project to ensure timely responses, contract compliance, and proper Quality Assurance/Quality Control (QA/QC) during construction activities. Therefore, City staff intends to use the City Council-approved On-Call consultant list to administratively issue a Purchase Order for the construction management and inspection services needed for this project.
City staff solicited and received proposals from Onward Engineering, Interwest Consulting Group (Interwest), Willdan Engineering, and Psomas from the City’s approved On-Call consultant list for construction management, inspection, and plan checking services. Interwest Consulting Group submitted a proposal for the base bid in the amount of $55,440, Onward Engineering submitted a proposal for the base bid in the amount of $158,755, Willdan Engineering submitted a proposal for the base bid in the amount of $188,544, and Psomas submitted a proposal for the base bid in the amount of $228,800. Interwest Consulting Group was able to provide a much more competitive cost proposal due to their in-depth understanding of the project and the efficiency gained from working on other projects with the City.
Interwest Consulting Group is a well-known civil engineering, construction management and inspection services firm with a good reputation. Interwest has previously provided construction management and inspection services in Fountain Valley for the following projects: Fire Station Remodel, Police Department Improvements, and Universally Accessible Playground.
Additionally, Interwest Consulting Group assisted in the design phase for the City Hall Improvements – Lobby Restrooms, which demonstrates that they are well-equipped and possess a strong understanding of this project. As such, Staff intends to administratively issue a Purchase Order to Interwest Consulting Group in the amount of $55,440.
FISCAL REVIEW
The current proposed FY2026/2027 budget includes sufficient funding for this project. This Project is funded by the General Fund. The budget and project expenses/costs are as follows:
FY2026/2027 Proposed Budget Allocation
Funding Source Budget
General Fund* $450,000.00
Total Budget* $450,000.00
*Included in the July 14, 2026 Council Action Request for the FY 26/27 Budget Update.
City Hall Improvements – Lobby Restrooms/KNM Design Build LLC July 14, 2026
Project No. 24004 Construction Costs
Vendor/Item Amount
Construction Design Sipport (BOA Architecture) PO 00260144* $13,800.00 Construction (KNM Design Build LLC) (dba NM Building Group) $304,615.00 15% Contingency $45,695
CM and Inspection (Interwest Consulting Group) $55,440
Project Plans and Bid Document Printing Costs $3,000
Total Project Expenses/Costs $422,550.00
^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 building facility work and a timesensitive schedule, City staff recommends that Council authorize the Director of Public Works a change order authority of 15% of the original contract amount for this project.
Project 24004 No. Remaining Budget
Description Amount
Project Budget Allocation* $450,000.00
Project Costs ($422,550.00)
Remaining Project Budget $27,450.00
*Included in the July 14, 2026 Council Action Request for the FY 26/27 Budget Update.
Construction Management and Inspection Consultant CON 1542 Description Amount
Total On-Call Contract for Interwest Consulting Group* $600,000.00 Total Purchase Orders Encumbrances ($205,230.00)
Construction Management and Inspection – Project No. 24004 ($55,440) Total Remaining in Contract $339,330.00
*Approved by City Council on February 18, 2025
PUBLIC NOTIFICATION
Not applicable.
ENVIRONMENTAL IMPACT REVIEW
Not applicable.
ATTORNEY REVIEW
The Attorney for the City has reviewed and approved the KNM Design Build LLC (dba NM Building Group) contract for City Hall Improvements – Lobby Restrooms, Project No. 24004 construction, and Interwest Consulting Group Contract CON 1542 for Construction Management and Inspection services.
City Hall Improvements – Lobby Restrooms/KNM Design Build LLC July 14, 2026
ALTERNATIVES
Alternative No. 1:
1) Accept the bids and award a construction contract to KNM Design Build LLC (dba NM Building Group) for Project No. 24004, City Hall Improvements – Lobby Restrooms, in the amount not-to-exceed $304,615; and
2) Accept the Interwest Consulting Group proposal and authorize staff to issue a Purchase Order in the amount not-to-exceed $55,440 for Construction Management and Inspection services for the City Hall Improvements – Lobby Restrooms Project.
Alternative No. 2
1) Reject all bids and direct staff to re-advertise for new bids. This is not the recommended action, as staff believes this will result in higherpriced construction bids. 2) Do not accept the Interwest Consulting Group proposal and do not authorize staff to issue a Purchase Order in the amount not-to-exceed $55,440 for Construction Management and Inspection services for the City Hall Improvements – Lobby Restrooms Project No. 24004.
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 KNM Design Build LLC (dba NM Building Group) for City Hall Improvements – Lobby Restrooms Project No. 24004, in the amount not-to-exceed $304,615;
2) Accept the Interwest Consulting Group proposal and authorize staff to issue a Purchase Order in the amount not-to-exceed $55,440 for Construction Management and Inspection services for the City Hall Improvements – Lobby Restrooms Project.
Support by: Terri Phan, Management Aide
Prepared by: Jessenia Penaloza, Assistant Engineer
Reviewed by: Kyle Knoke, P.E., Senior Civil 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: KNM Design Build LLC (dba NM Building Group) Contract Attachment 2: Interwest Consulting Group Proposal
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: July 14, 2026
Members of the City Council
SUBJECT: Approval of Amendment Number 3 to Consultant Services Agreement with Michael Baker International for Contract Assistant Planner Services Three-Year Strategic Goals
Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live”
Ensure long-term 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, plan for, and modernize infrastructure to support the growth and future needs of the City
Not applicable
EXECUTIVE SUMMARY
The City Manager approved an agreement (#1514) with Michael Baker International (MBI) to provide contract planning services through May 31, 2025, in an amount not-to-exceed $45,000.
The agreement was first amended on May 20, 2025 to extend the term to June 30, 2026, and amend the not-to-exceed total contract sum to $123,500 by the City Council. The agreement was amended for the second time on July 1, 2026, to just extend the term of the agreement to June 30, 2027. Staff is now requesting that the City Council approve Amendment No. 3 to increase the total contract sum of the agreement by $76,500, bringing the not-to-exceed amount to $200,000.
The original request for contract services allowed the City’s Associate Planner to shift to parttime status, backfilling the hours with a contract planner. Subsequent to his graduation, the City’s Associate Planner resigned to take a project management position at a private firm. The Community Development Department is currently working with HR to advertise and fill the position as soon as possible. The amendment with MBI will allow the continuation of a contract planner, enabling us to continue providing outstanding customer service.
DISCUSSION
MBI was originally contracted on November 27, 2024, to support staff in pursuing their higher education. Since then, MBI has provided planners who have worked at the public counter and served the general public. The agreement has been previously amended as necessary to continue their service to the City. Now, due to staff departures, it has become necessary to
amend the agreement for a third time, increase the total contract sum by $76,500, and bring the not-to-exceed amount to $200,000. This will allow the City to maintain current staffing levels to serve the public while the permanent position is being filled. This amendment will replace the current Scope of Services and Payment Terms, which will update the compensation amount of the agreement and will allow for MBI’s continued service.
FISCAL REVIEW
The cost of the amendment to the MBI agreement is an additional $76,500, bringing the total contract amount to $200,000. The expense will be charged to the Planning Department’s Contract Services account (100.30.30300.53007) and would be offset by cost savings associated with the vacant position. The FY 2026-27 proposed budgets are sufficient to cover the increased contract authority.
PUBLIC NOTIFICATION
Not applicable.
ENVIRONMENTAL IMPACT REVIEW
Not applicable.
ATTORNEY REVIEW
The Attorney for the City has reviewed and approved the Amendment.
ALTERNATIVES
Alternative No. 1: Approve Amendment No. 3 to Consultant Services Agreement (#1514) with Michael Baker International for Contract Assistant Planer Services.
Alternative No. 2: Decline to approve Amendment No. 3 and provide further direction.
RECOMMENDATION
Based on the positive experience with MBI’s services and to maintain current public service levels, staff is recommending Alternative No. 1, approval of the Amendment.
Prepared by: Victor Viramontes, Management Analyst
Reviewed by: Omar Dadabhoy, Deputy City Manager, Community Development Director
Approved by: Maggie Le, City Manager
Attachments:
1. Amendment Number 3
2. Updated Scope of Services and Payment Terms
AMENDMENT 3
AGREEMENT FOR CONSULTING SERVICES
CON - 1514
THIS THIRD AMENDMENT is made and entered into this 14TH day of July 2026, by and between the City of Fountain Valley (hereinafter "CITY") a municipal corporation, and Michael Baker International (hereinafter "CONSULTANT") a California corporation.
Recitals
WHEREAS, CITY and CONSULTANT previously entered into an Agreement for Contract Assistant Planner Services dated November 27, 2024, (AGREEMENT) which is incorporated herein by this reference; and
WHEREAS, the AGREEMENT was for an amount not-to-exceed Forty-Five Thousand Dollars ($45,000.00) and had a term ending on May 31, 2025; and WHEREAS, the agreement was first amended on May 20, 2025, to amend the total contract sum, as outlined in section 6 of the AGREEMENT, to an amount not-to-exceed One Hundred Twenty-Three Thousand Five Hundred Dollars ($123,500.00) and extended the term through June 30, 2026; and
WHEREAS, the agreement was amended for the second time on July 1, 2026, to extend the term of the agreement through June 20, 2027;
WHEREAS, the parties do now desire to amend the AGREEMENT and replace the current Scope of Services and Payment Term.
NOW, THEREFORE, the parties hereto agree as follows:
1. The total contract sum, as outlined in section 6 of the AGREEMENT, is hereby amended to state that the TOTAL CONTRACT SUM shall not exceed Two Hundred Thousand Dollars ($200,000.00).
2. The original Exhibit A Scope of Services and Payment Terms is replaced with a new Exhibit A Scope of Services and Payment Terms attached hereto and incorporated by reference as though set forth in full.
3. All other terms and conditions of the AGREEMENT, as amended, shall remain in full force and effect.
In witness whereof, the parties hereto have entered into this AMENDMENT #3 the date and year first above written.
ATTEST: CITY OF FOUNTAIN VALLEY
Rick Miller, City Clerk Jim Cunneen, Mayor
APPROVED AS TO FORM: CONSULTANT:
Attorney for the City Fareeha Kibriya, Vice President
CITY OF FOUNTAIN VALLEY
SUCCESSOR AGENCY TO THE FOUNTAIN VALLEY
AGENCY FOR COMMUNITY DEVELOPMENT
AGENCY ACTION REQUEST
To: Honorable Successor Agency Chair
and Members of the Successor Agency
Agenda Date: July 14, 2026
Subject: Adopt a resolution requesting dissolution of the Fountain Valley Successor Agency and taking related actions.
EXECUTIVE SUMMARY
Staff is requesting the Successor Agency to the Fountain Valley Agency for Community Development (“Successor Agency”) adopt a Resolution to request the Countywide Oversight Board for the County of Orange (“Oversight Board”) to formally Dissolve the Successor Agency, direct the transfer of remaining assets of the Successor Agency to the Orange County Auditor-Controller, and direct the submission of the resolution and the Oversight Board resolution to the California Department of Finance (“DOF”).
DISCUSSION
In 2011, the California State Legislature approved the dissolution of the state’s 400+ Redevelopment Agencies (“RDA”). After a period of litigation, RDAs were officially dissolved effective February 1, 2012. All rights, assets, and obligations of the Fountain Valley Agency for Community Development (“Former Agency”) were transferred, by law, to its “successor agency.” The Successor Agency must adhere to the California State Department of Finance (“DOF”) requirements under RDA dissolution statutes, Assembly Bill (“AB”)x1 26, AB 1484, AB 471, and Senate Bill (“SB”) 107, and oversees the windingdown of the Successor Agency, including making payments on enforceable obligations and disposing of redevelopment assets and properties.
In addition, the Redevelopment Property Tax Trust Fund (“RPTTF”) was established to fund outstanding obligations of the former RDAs. Former RDA tax increment funds, referred to as “property tax revenues,” are deposited in the RPTTF, which the County Auditor-Controller distributes to the Successor Agency and taxing entities after required adjustments. The Successor Agency may only receive RPTTF payments for “enforceable obligations,” as defined under the RDA dissolution statutes and approved by DOF.
There is also a Countywide Oversight Board that supervises the Successor Agency’s work. The Oversight Board is comprised of representatives of the local agencies that serve their respective redevelopment project areas: the cities, county, special districts, and K-14 educational agencies.
Successor Agency Dissolution
July 14, 2026
In June, the Fountain Valley Successor Agency made the final payment for the Palm Island Development Agreement, issued by the Former Agency. The Palm Island Development agreement was the last enforceable obligation of the Successor Agency.
Pursuant to Health and Safety Code (“HSC”) Section 34187(b), the Successor Agency must submit to the Oversight Board a request, with a copy to the Orange County AuditorController (the “County Auditor-Controller”), to formally dissolve the Successor Agency within 30 days of meeting the following criteria (collectively, the “Dissolution Criteria”):
(i) all enforceable obligations have been retired or paid off; and, (ii) all real property has been disposed of pursuant to HSC Section 34181 or 34191.4; and,
(iii) all outstanding litigation has been resolved.
By adopting this Resolution, the Successor Agency Board will make a determination that the dissolution criteria have been met. Pursuant to HSC Section 34187(b), the Oversight Board must take action within 30 days to approve the Successor Agency’s request to dissolve and then submit the request to the DOF. The DOF will have 30 days to approve or deny the request.
Once the DOF approves the request, the Successor Agency will have to take the following steps within 100 days of the DOF’s approval:
(1) Dispose of all remaining assets and transfer any proceeds to the County Auditor-Controller for distribution to the affected taxing entities. (2) Notify the Oversight Board that it has complied with such disposition and transfer of proceeds.
The Successor Agency intends to submit the request for dissolution to the Oversight Board at its July 21, 2026, meeting.
FINANCIAL ANALYSIS
The Successor Agency’s remaining assets currently consist of $574,124.33 (pending final interest allocation and closeout) of Successor Agency Administration money from the RPTTF Fund. After the Oversight Board’s adoption of the Oversight Board Resolution and the DOF’s approval of the Successor Agency’s request to dissolve, the Successor Agency will transfer the remaining assets to the County Auditor-Controller. The County AuditorController will disburse such funds to the taxing entities, including the City of Fountain Valley.
PUBLIC NOTIFICATION
The standard City Clerk’s agenda notification process was used for this item.
Successor Agency Dissolution
July 14, 2026
ALTERNATIVES
Alternative No. 1:
1. Approve the Successor Agency’s request to formally dissolve; and,
2. Direct the transfer of the remaining assets of the Successor Agency to the Orange County Auditor-Controller (the “County Auditor-Controller”); and,
3. Direct the submission of the Resolution and the Oversight Board Resolution to the California State Department of Finance (the “DOF”).
Alternative No. 2:
1. Do not adopt the Resolution requesting dissolution of the Fountain Valley Successor Agency and provide an alternative direction. This alternative is not recommended because it would violate the State’s dissolution law.
RECOMMENDATION
That the Successor Agency to the Fountain Valley Agency for Community Development adopt a resolution to request the Countywide Oversight Board for the County of Orange to formally dissolve the Successor Agency, direct the transfer of remaining assets of the Successor Agency to the Orange County Auditor-Controller, and direct the submission of the resolution and the OB resolution to the California Department of Finance (“DOF”).
Prepared by: Ryan Smith, Director of Finance/City Treasurer Reviewed by: Colin Burns, City Attorney
Approved by: Maggie Le, City Manager
Attachments:
1. Successor Agency Resolution Approving the request for dissolution.
SUCCESSOR AGENCY RESOLUTION NO. ___
RESOLUTION OF THE SUCCESSOR AGENCY TO THE
FOUNTAIN VALLEY AGENCY FOR COMMUNITY DEVELOPMENT
REQUESTING THE ORANGE COUNTYWIDE OVERSIGHT BOARD TO
FORMALLY DISSOLVE THE SUCCESSOR AGENCY
WHEREAS, the Fountain Valley Agency for Community Development (“Former Agency”) was established as a redevelopment agency that was previously organized and existing under the California Community Redevelopment Law, Health and Safety Code (“HSC”) Section 33000, et seq., and previously authorized to transact business and exercise powers of a redevelopment agency pursuant to action of the City Council of the City of Fountain Valley (“City”); and
WHEREAS, Assembly Bill x1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health and Safety Code, which caused the dissolution of all redevelopment agencies and wind down of the affairs of former agencies, including as such laws were amended by Assembly Bill 1484 and by other subsequent legislation, and most recently by Senate Bill 107 (together, the “Dissolution Law”); and WHEREAS, as of February 1, 2012 the Former Agency was dissolved under the Dissolution Law, and as a separate public entity, corporate and politic the Successor Agency to the Fountain Valley Agency for Community Development (“Successor Agency”) administers the enforceable obligations of the Former Agency and otherwise unwinds the Former Agency’s affairs, all subject to the review and approval by a seven-member oversight board; and
WHEREAS, Pursuant to Section 34179(j) of the California Health and Safety Code (“HSC”), from and after July 1, 2018, the Orange County Oversight Board (the “Oversight Board”) is the oversight board for the Successor Agency; and WHEREAS, The Successor Agency is tasked with winding down the Former Agency’s affairs; and
WHEREAS, Pursuant to HSC Section 34187(b), the Successor Agency shall submit to the Oversight Board a request, with a copy to the Orange County AuditorController (the “County Auditor-Controller”), to formally dissolve the Successor Agency within 30 days of meeting the following criteria (collectively, the “Dissolution Criteria”):
(i) all enforceable obligations have been retired or paid off; and, (ii) all real property has been disposed of pursuant to HSC Section 34181 or 34191.4; and,
(iii) all outstanding litigation has been resolved; and WHEREAS, The Successor Agency is not a party to any outstanding litigation; and WHEREAS, All of the Successor Agency’s real property (transferred from the Former Agency upon dissolution) has been disposed of pursuant to HSC Section 34181.
WHEREAS, Upon the final payment for the Palm Island Development Agreement, all of the Successor Agency’s enforceable obligations have been retired or paid off; and WHEREAS, With the Successor Agency having met the Dissolution Criteria of HSC Section 34187(b), this Board of Directors (the “Board”) desires to request the Oversight Board to approve the formal dissolution of the Successor Agency; and WHEREAS, Pursuant to HSC Section 34187(b), the Oversight Board must take action within 30 days to approve the Successor Agency’s request to dissolve and, after such approval, submit the request to the DOF; and
WHEREAS, Pursuant to HSC Section 34187(e), after the DOF’s approval of the Successor Agency’s request to dissolve, the Successor Agency shall dispose of all remaining assets as directed by the Oversight Board and the proceeds of such disposition shall be transferred to the County Auditor-Controller (the “Final Transfer”) ; and WHEREAS, The Successor Agency’s remaining assets consist of remaining administration funds from prior RPTTF disbursements; and WHEREAS, Upon the Oversight Board’s and the DOF’s approval of the Successor Agency’s request to dissolve, the Successor Agency will transfer all remaining assets to the County Auditor-Controller for the Final Transfer.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO THE FOUNTAIN VALLEY AGENCY FOR COMMUNITY DEVELOPMENT, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution.
Section 2. The Board hereby finds and determines that all of the Dissolution Criteria set forth in HSC Section 34187(b) for the Successor Agency’s dissolution have been met.
Section 3. The Board hereby requests the Oversight Board to adopt a resolution (the “OB Resolution”) to: (i) approve the Successor Agency’s request to formally dissolve, (ii) direct the transfer of the remaining assests to the County Auditor-Controller for the Final Transfer, and (iii) submit this Resolution and the Oversight Board Resolution to the DOF in accordance with HSC Section 34187(b).
Section 4. The Agency Clerk is hereby directed to cause copies of this Resolution to be submitted to: (i) the Oversight Board, and (ii) the County Auditor-Controller.
Section 5. The Board hereby finds and determines that the request to dissolve the Successor Agency set forth herein (and the dissolution of the Successor Agency pursuant to such request) shall constitute a change in the organization or reorganization of local governmental agencies that does not alter the geographic areas within which the powers are exercised for the purposes of the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.). Therefore, such request and dissolution shall be exempt from environmental review, pursuant to Section 15320 of Title 14 of the California Code of Regulations. In addition, it can be seen with certainty that such request and the dissolution of the Successor Agency will not have a significant effect on the environment. Therefore, such request and dissolution shall be exempt from environmental review, pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations.
Section 6. The officers and the other staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things, including the execution of any instruments, which they may deem necessary or advisable to effectuate this Resolution and any such actions previously taken are hereby ratified and confirmed.
PASSED, APPROVED and ADOPTED by the Board of Directors of the Successor Agency to the Fountain Valley Agency for Community Development at a regular meeting held on this 14th day of July 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN: _________________________
Jim Cunneen, Chair
Successor Agency to the Fountain Valley Agency for Community Development ATTEST:
Rick Miller, Secretary
Successor Agency to the Fountain Valley Agency for Community Development APPROVED AS TO FORM:
HARPER & BURNS LLP
Colin Burns
Attorneys for the Successor Agency to the Fountain Valley Agency for Community Development
CITY OF FOUNTAIN VALLEY
CITY COUNCIL
COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: July 14, 2026
Members of the City Council
SUBJECT: FY 2026-2027 Mid-Cycle Operating Budget & Capital Improvement Program Update of the Previously Adopted FY 2025-2027 Biennial Budget
Three-Year Strategic Goals
Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live”
Ensure long-term 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, plan for, and modernize infrastructure to support the growth and future needs of the City
Not applicable
EXECUTIVE SUMMARY
This report serves as the first mid-cycle budget update since the City of Fountain Valley adopted its biennial budget on June 3, 2025. It provides the City Council with updated financial projections through June 2026, establishing the baseline for modifications to Year Two of the adopted biennial budget (FY 2026-2027). Based on current information, positive revenue adjustments are proposed along with modest operational adjustments and the carryover of budget for incomplete projects and capital purchases.
DISCUSSION
Fiscal Year 2026-2027 General Fund Operating Budget Overview The General Fund is the primary operating fund of the City and supports fundamental services including Police, Fire, Community Development, Community Services, and general administration. Revenue for this fund comes from general taxes such as property tax, sales tax, Measure HH, and Transient Occupancy tax, as well as a variety of user and permit fees.
The FY 2026-2027 (FY 27) budget was developed in spring 2025, with conservative projections for most revenues. The Adopted General Fund revenue and expenditure budget is $84.9 and $84.1 million, respectively. Based on updated projections and activity during FY 2025-2026 (FY Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
26), staff have identified several General Fund revenues that are likely to exceed the current adopted budget, as well as a few that are underperforming compared to initial expectations.
General Fund Revenues
Table 1 below shows the FY 27 mid-cycle update for General Fund operating revenue at $86.9 million, $1.9 million higher than the current adopted budget of $84.9 million. Inclusive of the onetime Federal grant revenue, total General Fund revenue is $89.6 million, or $4.6 million higher than the adopted budget.
Table 1
Operating Revenue
Revised
Budget
Mid-Cycle
Update
Budget
Adjustments
General Fund Revenue
Property Taxes 27,199,000 27,199,000 -
Sales & Use Tax 16,145,000 16,745,000 600,000
Measure HH Transaction Tax 17,250,000 17,500,000 250,000 Franchise Fees 2,800,000 2,800,000 -
Transient Occupancy Tax 1,515,000 1,515,000 -
Use of Money & Property 3,046,830 3,046,830 -
Impact Fees 100,000 100,000 -
Other Revenue 170,000 920,000 750,000
Intergovernmental 3,046,645 3,121,645 75,000
Transfers In 784,770 777,400 (7,370)
Community Development 2,256,480 2,256,480 -
Business Licenses 519,000 519,000 -
Engineering and Public Works 1,139,600 1,139,600 -
Fire 6,953,074 7,073,074 120,000
Police 935,000 1,135,000 200,000
Community Services 1,081,600 1,077,600 (4,000)
Total Operating Revenue 84,941,999 86,925,629 1,983,630 One-Time Revenue
Federal Grant - 2,640,000 2,640,000
Total One-Time Revenue - 2,640,000 2,640,000
Total General Fund Revenue 84,941,999 89,565,629 4,623,630 General Fund Revenues
Fiscal Year 2026-27
Mid-Cycle Budget Adjustments
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Revenue adjustments from the revised budget are as follows:
Sales & Use Tax and Transaction Tax (Measure HH)
Based on revenue projections by the City’s sales tax consultant, HDL Companies, sales tax receipts are expected to exceed the current budget. Staff recommends increases of $600,000 to Sales & Use Tax and $250,000 to Measure HH Transaction Tax.
Other Revenue
Following State approval of an outdoor advertising permit, the City has entered into an Electronic Reader Board lease agreement to generate advertising revenue. Staff recommends an increase of $750,000.
Intergovernmental
Staff recommends a total increase of $2.7 million in intergovernmental revenue. Of this amount, $2.56 million is for a one-time Federal grant that will be used toward construction of the Talbert-East City Limit to Ward road rehabilitation project (#26008), and $75,000 is for OCTA reimbursements related to the I-405 project.
Transfers In
A portion of the City’s Gas Tax allocation is transferred to the General Fund to cover general street funding and Engineering & Administrative expenses. Due to updated revenue projections from the State, staff recommends a small decrease of $7,370.
Fire
Staff recommends a net increase of $120,000 for EMS revenue (+$200k) and Fire Permits (+$40k), which is offset by the elimination of the Palm Island paramedic impact payment (-$100k) and reduction in Hazard Material fees (-$20k).
Police
Based on an increase in citation revenue generated by the City’s contractor, Allied Universal, Vehicle Code Fine activity has increased significantly, and staff recommends an increase of $200,000.
Community Services
Based on FY 26 activity, staff recommends a modest $4,000 decrease in Recreation revenue, comprising a $15,000 decrease in Rec Center Room Rents, offset by a $10,000 increase in Gym rentals and $1,000 in drop-in fees.
General Fund Expenditures
Table 2 below shows the FY 27 mid-cycle update for the General Fund operating budget at $85.3 million, inclusive of the proposed mid-year expenditure adjustments. Including contributions to Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Capital Improvement Projects, total revised General Fund expenditures are $96.8 million, which is $6.0 million above the current adopted budget.
Table 2
Operating Expenditures
Adopted
Budget
Mid-Cycle
Update
Budget
Adjustments
Administration 3,160,592 3,198,592 38,000
Human Resources 2,064,862 2,211,862 147,000
Community Development 3,433,698 3,629,198 195,500
Finance 2,043,705 2,050,755 7,050
Public Works 9,760,584 9,854,634 94,050
Fire 18,950,222 19,563,855 613,633
Police 25,849,622 25,936,387 86,765
Recreation & Commmunity Services 4,107,971 4,213,111 105,140 Transfers Out
Additional Pension Contribution 3,000,000 3,000,000 -
Debt Service 2,599,180 2,599,180 -
CALPERS Required UAL 9,100,000 9,100,000 -
Total Operating Expenditures 84,070,436 85,357,574 1,287,138 Non-Operating Expenditures
Additional OPEB Contribution 2,000,000 2,000,000 -
Capital Improvement Projects 4,688,502 9,446,202 4,757,700 Total Non-Operating Expenditures 6,688,502 11,446,202 4,757,700 Total General Fund Expenditures 90,758,938 96,803,776 6,044,838 General Fund Expenditures
Fiscal Year 2026/27
Mid-Cycle Budget Adjustments
Expenditure adjustments from the adopted budget are as follows:
Administration
Staff is requesting an increase of $38,000 across the Administration department.
Increases include $10,000 for the Sister City Program within the City Council division; $25,000 for legal services; and $3,000 under Records Management for training supplies and conference cost increases.
Human Resources
The Human Resources department requests an additional $147,000 budget adjustment.
This includes $100,000 for employee-relations legal services, $25,000 for public-safety training, and $15,000 for Police and Fire recruitment videos. It also adds $5,000 for ADA accommodations and $2,000 for citywide retirement and employee recognition.
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Community Development
The Community Development department requests an additional $195,500 budget adjustment. This includes $35,000 to prepare an economic development plan, $25,000 for the North Island study, and $20,000 for advertisements. It also adds $10,000 for contracted code enforcement services, $500 for memberships and cell phones, and $105,000 for a new Building Inspector/Permit Technician position.
Finance
The Finance department requests an additional $7,050 within the purchasing division to accommodate citywide cost increases for paper, postage, water, and printing services for business cards, envelopes, and letterhead.
Public Works & Engineering
The Public Works department is requesting a $94,050 increase to its operating budget. Of that amount, $75,000 is for contracted I-405 project costs that are offset by the OCTA reimbursements discussed above, $10,000 for underbudgeted fiber optic maintenance, $5,500 for electricity, and the remaining $3,550 for printer maintenance and safety boots for staff.
Fire
The Fire Department is requesting additional appropriations of $613,633. Of this amount, $106,500 is needed to fill the new EMS Captain position; $312,000 is for the PP-GEMTIGT program and is offset by the previously discussed EMS revenue; $78,048 is for an increase to the MetroNet Dispatch agreement; $50,000 for a new part-time Emergency Management position within the EOC contract; $50,000 for fire safety uniform supplies; $15,000 for the Ambulance program; and $2,085 for the TIPS contract and PIO operations.
Police
The Police Department is requesting a net increase of $86,765 to its operating budget.
Increases include $27,000 for redaction services due to vacant positions; $20,000 for citation-related costs that are offset by the previously discussed Vehicle Code Fine revenue; $15,000 to supply (15) patrol vehicles with LED flares; $10,000 for new officer phones; $10,000 for safety apparel supply costs; and $4,765 for membership dues, fingerprinting identification services, annual K9 training, and water costs.
Recreation and Community Services
The Recreation and Community Services department is requesting additional appropriations of $105,140. The majority of the increase is for the Council-approved 70th Anniversary Celebration ($70k) and added concerts ($25k). The remaining $10,140 is for the cost of printing and mailing quarterly brochures.
Transfers-Out
Staff is requesting an increase of $4,757,700 in transfers from the General Fund to CIP to carry over several capital projects that are under contract but still in progress as of June 30, 2026. Included in the increase is $450,000 for the City Hall Security & Accessibility Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Project (#24004); $223,000 for the Fire Station No. 2 Fiber Optic (#25016); $80,000 for design associated with the Talbert-East City Limit to Ward road rehabilitation project (#26008); and $122,700 for traffic signal design (#26022). In addition, staff requests carryover of $1.03 million of Measure HH funding for the Talbert & Euclid road rehabilitation project (#24011) construction; $1.5 million, and $170,000 of General Fund and Measure HH funding, respectively, for the Newhope-Ward-Ellis-Slater road rehabilitation project (#25005); and $2.56 million for construction of the Talbert-East City Limit to Ward road rehabilitation project (#26008), which is offset by the Federal grant discussed previously. These increases were offset by a $350,000 reduction by deferring the Policy Facility Standby Generator project (#26005).
Internal Service Funds
Table 3 below shows the FY 27 mid-cycle update for the Internal Service Fund expenditures at $23.3 million.
Information Technology
Staff is requesting an increase of $373,500 in the Information Technology internal service fund. Of that amount, $250,000 carry over from the remaining FY 26 computer budget, and $123,500 is for the newly added Sr IT Analyst position.
Government Buildings
Staff is requesting $2.24 million in additional appropriations in the Government Buildings internal service fund. The majority of the increase ($1.88M) is for the Citywide Facilities Roofing project (#26004), which is funded through a transfer to CIP. Additionally, $205,700 is for carryover of the Neighborhood Parks and Recreation Center courts resurfacing project (#26019), and $185,000 is for a City Hall standby generator. The remainder nets to a $36,282 decrease, inclusive of carrying over some FY 26 items such as dividing doors, material bin rollup covers, exterior stucco and painting, HVAC repairs, and furniture, which are offset by items deferred to the next fiscal year. Budget will be increased from fund balance and will not require additional General Fund contributions.
Table 3
Operating Expenditures
Revised
Budget
Mid-Cycle
Update
Budget
Adjustments
Information Technology 4,409,325 4,782,825 373,500
Government Buildings 4,063,619 6,304,037 2,240,418
Fleet Management 2,954,045 6,053,453 3,099,408
Equipment Management 738,230 1,154,070 415,840
City Self Insurance 3,549,415 4,966,415 1,417,000
Total Operating Expenditures 15,714,634 23,260,800 7,546,166 Internal Service Fund Expenditures
Fiscal Year 2026/27
Mid-Cycle Budget Adjustments
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Fleet Management
Staff is requesting an increase of $3.1 million to the Fleet internal service fund. This budget request includes $1.4 million carryover for four (4) new ambulances; $750,000 for a new GapVax combination sewer cleaner/vacuum truck; $430,000 for a new Hydro Excavation truck; $143,300 for two (2) new Fire Management vehicles; and $125,000 for a diesel brush tractor and hydraulic lift trailer. The remaining $34,550 includes the addition of several trucks and passenger vehicles, which are offset by deferring other vehicle purchases to the next fiscal year.
Capital Equipment
Staff is requesting additional appropriations of $415,840 in the Capital Equipment internal service fund. The request includes $221,000 for ballistic vests (24), backup turn-out gear (20), and a washer extractor for the Fire department; $42,500 for a concrete mixer and saw; and $30,000 for canines and S.W.A.T. vests for the Police department. The remaining $122,340 is for various equipment and furniture purchases for Recreation and Field Services, which are offset by deferring Fleet Operations and Water items to next fiscal year. Budget will be increased from fund balance and will not require additional General Fund contributions.
Self-Insurance
Staff requests additional appropriations of $1,417,000 in the Self-Insurance internal service fund for worker’s compensation claims and legal fees ($1.17M), increased JPIA member contributions ($185k), and the temporary staffing contract ($57k). Budget will be increased from fund balance and will not require additional General Fund contributions.
Other Funds
Water Fund
Staff is seeking additional appropriations of $1,163,515 within the Water Fund. The increase is mostly attributed to the carryover of FY 26 capital projects that are still in progress at year-end including $100,000 for design of the Reservoir No. 1 replacement (#26014); $1,500,000 for Well Site No. 6 design and construction (#26016); $200,000 for Reservoir No. 1 exterior painting (#26017); $100,000 for Reservoir No. 2 design (#26018); $282,500 for the Bushard and Slater waterline rehabilitation project (#26024); $150,000 for the Drought Tolerant Landscape Improvements project (#25015); and $300,000 for the MWD Connection design (#26015). To offset these increases, $450,000 for Well Site No. 9 (#27008) and $350,000 for the Pipeline Replacement (#27009) have been deferred to next fiscal year.
The increases above are further offset by a $668,985 net decrease in the operating budget resulting from higher costs for well replenishment, the basin equity assessment, supplies and chemicals, and the Art on a Box Program, and a large decrease in import water.
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Sewer Fund
Staff is requesting additional appropriations totaling $3,225,200 in the Sewer Fund.
This includes $3,500,000 in carryover capital budget for the construction of the structural improvement project (#24042), which is offset by the removal of $350,000 for design (#27010). Another $75,000 is being requested in the operating budget for a CCTV Cues System.
Solid Waste
Staff is requesting additional appropriations of $10,000 for Neighborhood Cleanup in the Solid Waste Fund operating budget due to it previously having been omitted.
Fountain Valley Housing Authority
Staff is requesting an increase of $105,271 within the Fountain Valley Housing Authority due to increased operating costs for the Central Cities Navigation Center.
Successor Agency
Due to the Palm Island sunset clause, the developer payment has been eliminated and the Successor Agency is being dissolved. Staff is requesting a $100,000 offsetting reduction to revenue and expense in the Successor Agency fund. This fund is anticipated to be closed in FY27.
Capital Improvement Fund
The City’s Capital Improvement Program (CIP) identifies major public improvements to the City’s infrastructure during the current fiscal year. Projects scheduled in the Capital Improvement Fund in FY 27 are funded by the General Fund, Measure HH, Building Maintenance Fund, Gas Tax, RMRA, Measure M2, Water, Sewer, and Solid Waste Funds. The original adopted CIP for FY 27 included 9 projects for a combined total of $9.2 million.
Mid-Cycle CIP Adjustments
Staff requests additional appropriations totaling $11,598,400 in the Capital Improvement Fund.
The requested project amendments are summarized below by funding source.
General Fund – Net Increase of $4,757,700
City Hall Security & Accessibility Project (#24004) – Staff originally budgeted $614,000 in FY 26. Staff requests $450,000 of the remaining budget be carried over to FY 27.
Fire Station No. 2 Fiber Optic (#25016) – Staff requests budget of $223,000 be carried over into FY 27 for construction, which is anticipated to begin this summer and be completed by Fall 2026.
Fire Station Modifications (#26020) – This project was approved by Council as part of the Ambulance Program. Staff requests $81,000 of the remaining budget be carried over to FY 27 to complete the project by Fall 2026.
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Fire Station No. 1 Subgrade and Concrete (#26021) – This project was added to the FY 26 budget at mid-year, originally budgeted $100,000. Staff requests $52,000 of the remaining budget be carried over to FY 27 and expects to complete it in Summer 2026.
Talbert & Euclid Road Rehab (#24011) – This project was originally budgeted with $1.2 million in Measure HH funding in FY 26. Staff requests that $1,030,000 be carried over to FY 27 and the remainder reallocated to the project below.
Newhope/Ward/Ellis/Slater Road Rehab (#25005) – This project was originally budgeted in FY 26 with $1.5 million in funding from the General Fund. Staff requests that the full $1.5 million be carried over to FY 27 plus another $170,000 from Measure HH as reallocated from project 24011 above.
Talbert - East City Limit to Ward Road Rehab (#26008) – This project was originally budgeted for design in FY 26 ($150k) and construction in FY 27 ($3.3M) with multiple funding sources. Staff requests that the remaining design budget of $80,000 be carried over to FY 27 with General Fund funding. The construction budget remains but is being reallocated to utilize General Fund funding ($2.56M), which will be reimbursed by the Federal grant discussed earlier in this report.
Design for Four (4) Traffic Signals (#26022) – This project was added at FY 26 midyear and had a budget of $150,000. Staff requests that the balance of $122,700 be carried over to FY 27.
Government Buildings Internal Service Fund – Net Increase of $1,886,000 Citywide Facilities Roofing (#26004) – This project began in FY 26 with funding from the General Fund and Government Buildings, and the original adopted budget for FY 27 included $1.67 million to continue construction. Staff reduced the budget by $800,00 to eliminate General Fund funding and requests carry over of the $1.886 million balance to be added to the Government Buildings budget.
Gas Tax Fund – Net Decrease of $100,000
Citywide Re-striping (#26009) – This project was originally budgeted for $100,000 in FY 27 but has been deferred.
Road Maintenance & Rehab (RMRA) Fund – Net Increase of $1,161,356 Talbert - East City Limit to Ward Road Rehab (#26008) – Staff originally budgeted $1.27 million from RMRA for this project. Due to the Federal grant discussed previously, the budget for this funding source was reallocated to projects 24011 and 25005.
Talbert & Euclid Road Rehab (#24011) – Staff requests that the full FY 26 budget of $937,553 be carried over to FY 27 to complete construction for this project.
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Newhope/Ward/Ellis/Slater Road Rehab (#25005) – Staff requests carryover of the $1.2 million FY 26 budget plus $298,803 for FY 27 to complete the project based on new estimates.
Traffic Improvement Fund – Net Increase of $100,000
Euclid Southbound Lane Striping (#26023) – This project was added at FY 26 midyear with $80,000 in funding from the Traffic Improvement fund. Staff requests carry over of the FY 26 budget plus $20,000 to complete the project.
Measure M Fund – Net Increase of $3,490,344
Talbert & Euclid Road Rehab (#24011) – Staff requests that the full FY 26 budget of $1,307,447 be carried over to FY 27 to complete construction for this project.
Newhope/Ward/Ellis/Slater Road Rehab (#25005) – Staff requests carryover of $1,146,197 from FY 26 to FY 27 to complete the project based on new estimates.
Talbert - East City Limit to Ward Road Rehab (#26008) – The adopted FY 27 budget included $870,000 in funding from RMRA for this project. Due to the Federal grant discussed previously, the budget for this funding source was reduced to $685,000.
Citywide Traffic Signal Equipment (#24015) – Staff requests carryover of $712,000 from FY 26 to FY 27 for this project.
Edinger Signal Synchronization (#24019) – Staff requests carryover of the full FY 26 budget of $39,700 to FY 27 for this project.
Euclid Signal Synchronization (La Habra Lead) (#24022) – Staff requests carryover of the full FY 26 budget of $220,000 to FY 27 for this project.
Slater Signal Synchronization (Irvine Lead) (#24023) – Staff requests carryover of the full FY 26 budget of $200,000 to FY 27 for this project.
Newland – Slater to Heil Road Rehab (HB Lead) (#TBD) – This is a new project.
Staff requests $350,000, with construction anticipated to begin in Winter 2026/2027.
AQMD Fund – Net Increase of $63,000
Citywide Signal Retiming (#24018) – Staff requests that the FY 26 remaining budget of $63,000 be carried over to FY 27 to complete this project by Winter 2026.
Water Fund – Net Increase of $110,000
Talbert & Euclid Road Rehab (#24011) – Staff requests that the full FY 26 budget of $25,000 be carried over to FY 27 to complete construction for this project.
Newhope/Ward/Ellis/Slater Road Rehab (#25005) – Staff requests carryover of $25,000 from FY 26 to FY 27, plus an additional $60,000 to complete the project based on new estimates.
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Sewer Fund – Net Increase of $130,000
Talbert & Euclid Road Rehab (#24011) – Staff requests that the full FY 26 budget of $30,000 be carried over to FY 27 to complete construction for this project.
Newhope/Ward/Ellis/Slater Road Rehab (#25005) – Staff requests carryover of $30,000 from FY 26 to FY 27, plus an additional $70,000 to complete the project based on new estimates.
Staffing Modifications
Fire
o EMS Captain – To assist in administering a city-operated ambulance program, the Fire Department requested authorization to add an EMS Captain position beginning November 2027, which was approved by Council on September 25, 2025. There is a 5-month transition period to a city-operated ambulance program, and staff is requesting additional appropriations of $106,500 to cover this position for the entire fiscal year.
Information Technology
o Senior IT Analyst – To assist in overseeing Cyber-Security and Artificial Intelligence, the IT Department has requested the addition of a Senior IT Analyst. Staff is requesting a total of $123,500 within the Information Technology internal service fund for this position. The annual fully-loaded, top-step cost of the Senior IT Analyst is currently $171,800.
FISCAL REVIEW
The FY 2026-2027 budget was adopted on June 3, 2025, with a budgeted deficit of $5,816,939, including transfers for capital projects. Table 4 below presents the adopted General Fund Budget and Ambulance Program changes adopted by the City Council for FY 2025-2026. The proposed Mid-Cycle Budget Update for General Fund revenues, expenditures, and transfers, results in a net increase to the General Fund deficit of $1,421,208.
Inclusive of all revisions, the net deficit would be $7,761,727 as of July 14, 2026. However, due to the number of incomplete CIP projects that are being carried over, staff projects a surplus in FY 26 that will offset the FY 27 increase.
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Table 4
Council
Meeting
Date Description
Operating
Revenues
Operating
Expenditures
Transfers
to/from GF
Net
Surplus
(Deficit)
6/3/2025 Adopted Budget for FY 26/27 84,941,999 (84,070,436) (6,688,502) (5,816,939) 9/25/2025 Ambulance Program Changes (523,580) (6,340,519) 7/14/2026 Mid-Cycle Budget Adjustments FY 26/27 4,623,630 (1,287,138) (4,757,700) (7,761,727) 89,565,629 (85,881,154) (11,446,202)
GENERAL FUND - ADOPTED BUDGET PLUS CHANGES
As of July 14, 2026
The Internal Service Funds have a net combined increase in budgeted expenditures of $7,546,166, bringing the total Internal Service Funds combined budget to $23.2 million for FY 2026-2027. The increased appropriations in Information Technology, Government Buildings, Fleet, Equipment, and Self Insurance will be supported by the existing fund balance.
In the proprietary funds, the mid-cycle update results in a decrease to projected fund balances of $1,163,515 in the Water Fund, $3,225,200 in the Sewer Fund, and $10,000 in the Solid Waste Fund.
ALTERNATIVES
Alternative No. 1: Approve the Mid-Cycle Budget Update adjustments for Fiscal Year 2026/27 as recommended in this report.
Alternative No. 2: Do not approve Alternative No. 1 and provide direction to staff.
RECOMMENDATION
Staff recommends that the City Council approve Alternative No. 1 to:
1. Adopt a resolution amending the adopted FY 2026/27 City of Fountain Valley Annual Budget and Capital Improvement Program.
Prepared by: Robin Harnish, Finance Manager
Ryan Smith, Finance Director
Reviewed by: Colin Burns, City Attorney
Approved by: Maggie Le, City Manager
Amendments to the FY 2026-2027 Adopted Annual Operating Budget & CIP July 14, 2026
Attachment 1: FY 2026/27 Proposed Mid-Cycle Update Budget Amendments Attachment 2: FY 2026/27 CIP Project Matrix