The City has not in any way agreed, nor does it expect, to be such a purchaser. See “– FDIC/Federal Government Interests in Properties” for a discussion of the policy of the FDIC regarding the payment of assessments and special taxes and limitations on the City’s ability to foreclose on the lien of the Assessments in certain circumstances.
Parity of Taxes, Bonds and Special Assessments
The Assessments and any penalties with respect thereto constitute a lien against the assessable property within the Assessment District until they are paid. The lien of the Assessments is subordinate to all fixed special assessment liens previously imposed upon the same property but has priority over all private liens and over all fixed special assessment liens which may thereafter be created against the property. Such lien is co-equal to and independent of the lien for general taxes and any lien imposed under the Mello-Roos Community Facilities Act of 1982, as amended.
The City does not have control over the ability of other local government agencies to issue indebtedness secured by assessments or special taxes against all or a portion of the Assessment District. In addition, the owners of assessable parcels of property in the Assessment District may, without the consent or knowledge of the City, petition other public agencies to issue public indebtedness secured by assessments or special taxes. Any such assessments or special taxes may have a lien on such property on a parity with the Assessments. See “THE ASSESSMENT DISTRICT – Direct and Overlapping Debt” and “– Future Debt Issuance” below.
Moreover, in the event of a delinquency in the payment of the assessment levy, no assurance can be given that the proceeds of any foreclosure sale would be sufficient to pay the delinquent assessments and any other delinquent assessments, special taxes or taxes. See “– Property Values” above.
Right to Vote on Taxes Act
On November 5, 1996, the voters of the State approved Proposition 218, the so-called “Right to Vote on Taxes Act.” Proposition 218 added Articles XIIIC and XIIID to the State 116
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39 Constitution, which contain, among other things, a number of provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges.
Article XIIID requires that, beginning July 1, 1997, the proceedings for the levy of any assessment by the City under the 1913 Act (including, if applicable, any increase in such assessment or any supplemental assessment under the 1913 Act) must be conducted in conformity with the provisions of Section 4 of Article XIIID. The City completed its proceedings for the levy of assessments in the Assessment District after complying with the procedural requirements of Section 4 of Article XIIID. Under Section 10400 of the 1913 Act, any challenge to the proceedings or the Assessment must be brought within 30 days after the date the assessment was levied.
Article XIIIC removes limitations on the initiative power in matters of local taxes, assessments, fees and charges. Article XIIIC does not define the term “assessment”, and it is unclear whether this term is intended to include assessments levied under the 1913 Act.
Furthermore, this provision of Article XIIIC is not, by its terms, restricted in its application to assessments which were established or imposed on or after July 1, 1997. In the case of the unpaid Assessments which are pledged as security for the payment of the Bonds, the 1915 Act provides a mandatory, statutory duty of the City and the County Auditor to post installments on account of the unpaid Assessments to the property tax roll of the County each year while any of the Bonds are outstanding, in amounts equal to the principal of and interest on the Bonds coming due in the succeeding calendar year. Although the matter is not free from doubt, it is likely that a court would hold that Article XIIIC has not conferred on the voters the power to reduce or repeal the unpaid Assessments which are pledged as security for payment of a Bond or to otherwise interfere with performance of the mandatory, statutory duty of the City and the County Auditor with respect to the unpaid Assessments which are pledged as security for payment of the Bonds.
The interpretation and application of Article XIIIC will ultimately be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty the outcome of such determination or the timeliness of any remedy afforded by the courts. See “BONDOWNERS’ RISKS – Limitations on Remedies.” Ballot Initiatives and Legislative Measures
Proposition 218 was adopted pursuant to a measure qualified for the ballot pursuant to California’s constitutional initiative process, and the State Legislature has in the past enacted legislation which has altered the spending limitations or established minimum funding provision for particular activities. From time to time, other initiative measures could be adopted by California voters or legislation enacted by the Legislature. The adoption of any such initiative or legislation might place limitations on the ability of the State, the City or local districts to increase revenues or to increase appropriations or on the ability of a landowner to complete the development of property.
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40 Impact of Legislative Proposals, Clarifications of the Tax Code and Court Decisions on Tax Exemption
Future legislative proposals, if enacted into law, clarification of the Internal Revenue Code of 1986, as amended (the “Tax Code”) of court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent beneficial owners of the Bonds from realizing the full current benefit of the tax status of such interest.
For example, Congress has considered in the past and may consider in the future, legislative proposals, including some that carry retroactive effective dates, that, if enacted, would alter or eliminate the exclusion from gross income for federal income tax purposes of interest on municipal bonds, such as the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation.
The introduction or enactment of any such future legislative proposals, clarification of the Tax Code or court decisions may also affect the market price for, or marketability of, the Bonds.
Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation as to which Bond Counsel expresses no opinion.
Loss of Tax Exemption
Interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date the Bonds were issued as a result of future acts or omissions of the City in violation of its covenants in the Fiscal Agent Agreement. Should such an event of taxability occur, the Bonds are not subject to a special redemption and will remain outstanding until maturity or until redeemed under one of the other redemption provisions contained in the Fiscal Agent Agreement.
IRS Audit of Tax-Exempt Bond Issues
The Internal Revenue Service has a program for the auditing of tax-exempt bond issues, including both random and targeted audits. It is possible that the Bonds will be selected for audit by the Internal Revenue Service. It is also possible that the market value of the Bonds might be affected as a result of such an audit of the Bonds (or by an audit of similar bonds or securities).
Absence of Secondary Market for the Bonds
There can be no assurance that there will be a secondary market for purchase or sale of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price.
Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price. From time to time, there may be no secondary market for the Bonds, depending upon prevailing market conditions, the financial condition or market 118
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41 position of firms (if any) who may make the secondary market in the Bonds and the financial condition of the owners of property within the Assessment District. The Bonds should therefore be considered long-term investments in which funds are committed to maturity, subject to redemption prior to maturity as described herein.
Future Debt Issuance
The ability of an owner of land within the Assessment District to pay the Assessment Installments could be affected by the existence of other taxes and assessments imposed upon parcels in the Assessment District with unpaid Assessment Installments. In addition, the City and other public agencies whose boundaries overlap those of the Assessment District could impose additional taxes or assessment liens on the property within the Assessment District in order to finance public improvements or services to be located or provided inside of or outside of such area. The lien created on the property within the Assessment District through the levy of such additional taxes may be on a parity with the lien of the Assessment Installments levied by the City. See “THE ASSESSMENT DISTRICT – Direct and Overlapping Debt” herein.
The imposition of additional liens on a parity with the Assessment Installments may reduce the ability or willingness of the landowners to pay the Assessment Installments and increase the possibility that foreclosure proceeds will not be adequate to pay delinquent Assessment Installments.
The City does not have control over the ability of other entities and districts to issue indebtedness secured by special taxes, ad valorem taxes or assessments payable from all or a portion of the property within the Assessment District. In addition, the landowners within the Assessment District may, without the consent or knowledge of the City, petition other public agencies to issue public indebtedness secured by special taxes, ad valorem taxes or assessments.
Any such special taxes, ad valorem taxes or assessments could reduce the estimated value-to-lien ratios for property within the Assessment District described herein.
Disclosures to Future Purchasers
The willingness or ability of an owner of a parcel to pay the Assessment Installments even if the value of the parcel is sufficient may be affected by whether or not the owner was given due notice of the Assessment Installments authorization at the time the owner purchased the parcel, was informed of the amount of the Assessment Installments on the parcel and the risk of such a levy, and, at the time of such a levy, has the ability to pay it as well as pay other expenses and obligations. The City has caused a notice of the Assessment lien to be recorded in the Office of the Recorder for the County against each parcel in the Assessment District. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider such Assessment Installments obligation in the purchase of a property within the Assessment District or lending of money thereon.
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42 Cybersecurity
The City, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations. The City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks.
No assurance can be given that the efforts of the City to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City, or the administration of the Bonds. The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation the County tax collector for the levy and collection of the unpaid Assessments and the Fiscal Agent. No assurance can be given that the City and these other entities will not be affected by cyber threats and attacks in a manner that may affect the Bond owners.
LEGAL MATTERS
The validity of the Bonds and certain other legal matters are subject to the approval of Bond Counsel. Bond Counsel will render an opinion with respect to the validity and enforceability of the Bonds and the Fiscal Agent Agreement. Such opinion will be subject to the various assumptions, exceptions and limitations stated therein. See Appendix B – “FORM OF BOND COUNSEL OPINION.”
Certain legal matters will be passed on for the City by the City Attorney, and by Anzel Galvan LLP, San Francisco, California, as Disclosure Counsel. Certain legal matters will be passed on for the Underwriter by Kutak Rock LLP, Irvine, California.
ABSENCE OF LITIGATION
There is no action, suit, or proceeding pending or, to the best knowledge of the City, threatened to restrain or enjoin the delivery of the Bonds or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the issuance or sale thereof.
The City will certify at closing that there is no litigation of any nature pending against the City to restrain or enjoin the issuance, sale, execution or delivery of the Bonds or in any way contesting or affecting the validity of the Bonds, the proceedings of the City taken with respect to the issuance or sale thereof, the proceedings of the City taken with respect to the assessment of property within the Assessment District, the existence or powers of the City or the title of any officers of the City to their respective position. In addition, a no litigation opinion rendered by the City Attorney will be required to be delivered to the Underwriter simultaneously with the delivery of the Bonds.
TAX MATTERS
In the opinion of Best Best & Krieger LLP, Riverside, California, subject, however, to certain qualifications described in this Official Statement, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain 120
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43 covenants, the interest on the Bonds is excluded from gross income for federal income tax purposes, and interest on the Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations; however, interest on the Bonds is taken into account in determining the annual adjusted financial statement income of certain corporations for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income tax.
The opinions set forth in the preceding paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (“Tax Code”) that must be satisfied subsequent to the issuance of the Bonds. The City has made certain representations and covenanted to comply with each such requirement. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel’s attention after the date of issuance of the Bonds may adversely affect the value of, or the tax status of interest on, the Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events, or matters.
If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium is disregarded.
Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, prepayment, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such Bonds under federal individual alternative minimum taxes.
Under the Tax Code, original issue premium is amortized on an annual basis over the term of the Bond (said term being the shorter of the bond’s maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium 121
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44 on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized Bond premium is not deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Bonds.
Current and future legislative proposals, if enacted into law, clarification of the Tax Code, or court decisions may cause interest with respect to the Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code, or court decisions may also affect the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.
The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the Bonds for federal income tax purposes. It is not binding on the Internal Revenue Service (“IRS”) or the courts. Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the City or about the effect of future changes in the Tax Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS. The City has covenanted, however, to comply with the requirements of the Tax Code.
A copy of the proposed form of opinion of Bond Counsel is attached hereto as Appendix B.
Owners of the Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Bonds other than as expressly described above.
The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of such opinion, and Bond Counsel has expressed no opinion with respect to any proposed legislation or as to the tax treatment of interest on the Bonds, or as to the consequences of owning or receiving interest on the Bonds, as of any future date. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.
CONTINUING DISCLOSURE
The City will covenant for the benefit of holders of the Bonds to provide certain financial information and operating data relating to itself and the Assessment District not later than March 1 of each year, commencing on March 1, 2027 with the report for the 2025-26 fiscal year (the “Continuing Disclosure Annual Report”) and to provide notices of the occurrence of certain enumerated events. The Continuing Disclosure Annual Report and the notices of enumerated events will be filed by the City with the Municipal Securities Rulemaking Board (the “MSRB”) through the Electronic Municipal Market Access system (the “EMMA System”) in an electronic format and accompanied by identifying information as prescribed by the MSRB. The specific 122
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45 nature of the information to be contained in the Continuing Disclosure Annual Report or the notices of enumerated events is set forth in the Continuing Disclosure Certificate to be delivered by the City in connection with the Bonds, the form of which is included as Appendix D – “FORM OF CONTINUING DISCLOSURE CERTIFICATE.” These covenants will be made in order to assist the Underwriter in complying with the Rule.
In addition to its governance of the Assessment District, the City Council is the legislative body of certain other assessment districts established by the City Council. The City has from time to time entered into undertakings under the Rule in connection with bond issuances thereof. Within the last five years, the City complied in all material respects with its undertakings under the Rule, except that (i) the City filed its audited financial statements after the deadlines therefor for the fiscal years ending June 30, 2021 (19 days late), June 30, 2022 (96 days late), June 30, 2023 (34 days late) and June 30, 2024 (54 days late), and (ii) the City failed to file on the EMMA System notices regarding its failure to file the financial statements for June 30, 2023 and June 30, 2024 on or before the deadline. The City subsequently filed the required audited financial statements on the EMMA system. The City’s failure to file audited financial statements in a timely manner stems from continuous staff turnover within the Finance Department, including key positions such as Finance Director, Senior Accountant and Finance Manager. In fiscal year 2024–25, the City onboarded a new Finance Director and implemented a new enterprise resource planning system.
To assist the City to comply with its existing continuing disclosure undertakings and undertaking under the Rule with respect to the Bonds, the City has designated the City Treasurer with responsibility of ensuring timing and complete filings with respect thereto. The City has also adopted policies and procedures for the City regarding continuing disclosure and has appointed DTA as dissemination agent under the Continuing Disclosure Certificate. In addition, in August and October 2025, the City added an Accounting Manager and a second Senior Accountant to the Finance Department. The City believes that its policies and procedures and increased staffing will enable the City to complete and file its audited financial statements on a timely basis going forward.
NO RATING
The City has not made, and does not contemplate making, application to any rating agency for the assignment of a rating to the Bonds.
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46 UNDERWRITING
The Bonds are being purchased through negotiation by Oppenheimer & Co. Inc. (the “Underwriter”). The Underwriter has agreed to purchase the Bonds for $________, which represents the par amount of the Bonds, plus net original issue premium of $________ and less an underwriter’s discount of $________. The purchase contract for the Bonds provides that the Underwriter will purchase all of the Bonds, if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in such purchase contract, the approval of certain legal matters by counsel and certain other conditions.
The Underwriter may offer and sell the Bonds to certain dealers and others at prices lower than the public offering prices set forth on the inside cover page hereof. The offering prices may be changed from time to time by the Underwriter.
MUNICIPAL ADVISOR
Fieldman, Rolapp & Associates, Inc. has acted as Municipal Advisor (the “Municipal Advisor”) to the City in connection with the issuance of the Bonds. The Municipal Advisor has assisted in matters related to the planning, structuring, execution, and delivery of the Bonds. The Municipal Advisor will receive compensation contingent upon the sale and delivery of the Bonds. The Municipal Advisor has not audited, authenticated, or otherwise independently verified the information set forth in this Official Statement, or any other related information available, with respect to accuracy and completeness of disclosure of such information. Because of this limited participation, the Municipal Advisor makes no guaranty, warranty, or other representation with respect to the accuracy or completeness of this Official Statement, or any other matter related to this Official Statement.
FINANCIAL INTERESTS
The fees of the Underwriter, Anzel Galvan LLP, as Disclosure Counsel, Kutak Rock LLP, as Underwriter’s Counsel, and the Municipal Advisor are contingent upon issuance of the Bonds.
MISCELLANEOUS
Insofar as any statements made in this Official Statement involve matters of opinion or of estimates, whether or not expressly stated, they are set forth as such and not as representations of fact. No representation is made that any of such statements made will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract with the Owners of the Bonds.
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47 The execution and delivery of this Official Statement have been duly authorized by the City.
CITY OF LAGUNA BEACH
By:
Finance Director
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APPENDIX A
GENERAL ECONOMIC DATA REGARDING THE CITY AND THE COUNTY
THE FOLLOWING DATA HAS BEEN PROVIDED AS GENERAL BACKGROUND INFORMATION ONLY. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING
POWER OF THE CITY, THE COUNTY, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS.
ALTHOUGH REASONABLE EFFORTS HAVE BEEN MADE TO INCLUDE UP-TODATE INFORMATION HEREIN, MUCH OF THE INFORMATION IS NOT CURRENT. IT
SHOULD NOT BE ASSUMED THAT THE TRENDS INDICATED BY THE FOLLOWING DATA WOULD CONTINUE BEYOND THE SPECIFIC PERIODS REFLECTED HEREIN.
General and Location
The City of Laguna Beach (the “City”) is located in County of Orange (the “County”).
The City was incorporated as a general law city in 1927, operates under the council- manager form of government. The voters of the City elect five council members by popular vote on a non-partisan basis for staggered terms of four years. The council selects the mayor from among its members. The council enacts all local laws, approves the City budget, appoints City officials, and adopts the City tax rate.
The City is a residential community located on the Pacific coastline 50 miles south of Los Angeles and 80 miles north of San Diego. The City is bounded by beach for about seven miles and consists of 3,328 acres situated in southern Orange County. Originally settled in the late 1800s the City has gradually become known as an artists’ colony and popular tourist area because of its location, scenic surroundings, and Mediterranean-type climate.
The City is well known for its summer artistic events. The Festival of Arts, which began over 80 years ago, provides a forum for the talents of several hundred artists. The Pageant of the Masters is a tribute to the achievements of famous painters and sculptors during which their works are replicated as real-life exhibits. These cultural attractions, coupled with the physical attributes of the coastline setting, distinguish the City as offering unusual recreation opportunities throughout the year.
The City maintains its own police and fire departments. The public beaches are protected by a lifeguard contingent fully activated during the summer season. 126
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A-2
Population
The following table shows population estimates for the City, the County and the State as of January 1 for the past five calendar years.
CITY OF LAGUNA BEACH, COUNTY OF ORANGE
AND STATE OF CALIFORNIA
Population Estimates
Calendar Years 2021 through 2025
Year
City of
Laguna Beach
County of
Orange California
2021 22,648 3,174,592 39,369,530
2022 22,506 3,159,797 39,179,680
2023 22,445 3,156,200 39,228,444
2024 22,759 3,170,070 39,420,663
2025 22,763 3,175,427 39,529,101
Source: State Department of Finance.
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Employment and Industry
The following table summarizes the civilian labor force, employment and unemployment, as well as employment by industry, in the Anaheim-Santa Ana-Irvine Metropolitan Division for the years 2020 through 2024.
ANAHEIM-SANTA ANA-IRVINE METROPOLITAN DIVISION
Employment by Industry
Annual Averages
(March 2024 Benchmark)
2020 2021 2022 2023 2024
Civilian Labor Force (1) 1,575,300 1,569,400 1,593,400 1,611,700 1,623,300 Employment 1,436,000 1,476,000 1,542,300 1,555,700 1,559,600 Unemployment 139,300 93,400 51,100 56,000 63,600
Unemployment Rate 8.8% 6.0% 3.2% 3.5% 3.9%
Wage and Salary Employment (2)
Agriculture 1,900 2,000 1,700 1,700 1,700
Mining and Logging 500 400 400 300 300
Construction 101,300 102,200 105,300 104,600 105,500
Manufacturing 150,100 149,800 155,400 156,600 155,300
Wholesale Trade 76,800 77,500 79,000 81,100 80,800
Retail Trade 137,600 143,400 145,500 145,800 144,800
Transportation, Warehousing and Utilities 29,600 31,100 33,800 35,700 35,400 Information 24,100 24,000 24,300 22,700 21,500
Finance and Insurance 77,700 78,100 72,200 63,200 62,400 Real Estate and Rental and Leasing 38,200 39,000 40,100 40,500 40,800 Professional and Business Services 309,200 321,700 331,500 320,100 315,100 Private Education and Health Services 225,800 237,300 249,200 263,600 274,000 Leisure and Hospitality 161,800 180,400 217,900 229,800 234,500 Other Services 44,100 47,500 53,100 55,200 56,000
Federal Government 11,600 11,000 10,800 10,700 10,700
State Government 32,600 34,200 33,400 33,300 32,700
Local Government 111,900 110,500 114,000 116,500 119,800 Total, All Industries (3) 1,534,600 1,589,800 1,667,700 1,681,400 1,691,400 (1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(3) Figures may not total due to rounding.
Source: State of California Employment Development Department. 128
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Employers
The following table shows the largest employers in the City for the fiscal year ending June 30, 2025.
CITY OF LAGUNA BEACH
Largest Employers
Number of
Employees
Percent of Total
Employment
Montage Laguna Beach Hotel 621 5.26%
Laguna Beach School District 365 3.09%
Mission Hospital, Laguna Beach (1) 340 2.88%
City of Laguna Beach 331 2.81%
Surf & Sand Resort 248 2.10%
Laguna College of Art & Design 224 1.90%
Las Brisas Restaurant 162 1.37%
Anneliese Schools 114 0.97%
Pavilions 94 0.80%
Mozambique Restaurant 87 0.74%
(1) Laguna Beach campus only.
Source: City of Laguna Beach.
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The table below lists the largest employers in the County, listed alphabetically.
COUNTY OF ORANGE
Largest Employers
As of January 2026
Employer Name Location Industry
Abbvie Irvine Pharmaceutical Research Laboratories
American Funds Irvine Services NEC
Anaheim City Hall Anaheim City Hall
B Braun Medical Inc Irvine Physicians & Surgeons Equip & Supls-Mfrs Boeing Co Coml Airlines Spprt Seal Beach Radio/Tv Broadcasting/Comm Equip (mfrs) Broadcom Corp Irvine Semiconductors & Related Devices (mfrs) Edwards Lifesciences Corp Irvine Orthopedic Prosthetic/Srgcl Appl (mfrs) Emplicity Irvine Business Services NEC
Fairview Developmental Ctr Costa Mesa Hospitals
James R Glidewell Dental Crmcs Irvine Dentists
Jefferson School of Philosophy Laguna Hills Books School & Textbooks Judicial Council of California Santa Ana Federal Government Contractors Kay Jewelers Westminster Jewelers-Retail
Laguna Woods Village Cmnty Ctr Laguna Woods Senior Citizens Service Largo Concrete Tustin Concrete Contractors
Menzies Aviation Costa Mesa Airline Support Services
Orange Coast College Costa Mesa Junior-Community College-Tech Institutes Orange County Child & Family Orange Government Offices-County Pacifi Care Health Systems LLC Cypress Insurance
Providence Mission Hosp Msn Vj Mission Viejo Hospitals
Providence St Joseph Hosp Orng Orange Hospitals
Pylusd Schools Placentia Schools
Quest Diagnostics San Juan Cpstrno Laboratories-Medical University of Ca-Irvine Irvine Schools-Universities & Colleges Academic University-Ca Irvine Anteater Irvine Stadiums Arenas & Athletic Fields Source: State of California Employment Development Department, extracted from the America's Labor Market Information System (ALMIS) Employer Database, 2026 1st Edition.
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Personal Income
Personal Income is the income that is received by all persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors’ income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance.
The personal income of an area is the income that is received by, or on behalf of, all the individuals who live in the area; therefore, the estimates of personal income are presented by the place of residence of the income recipients.
The following table summarizes the personal income for the County for 2015 through 2024.
COUNTY OF ORANGE
Personal Income (1)
Year
County of
Orange
Percentage
Change
2015 $187,042,532 7.64%
2016 194,223,700 3.84
2017 202,337,241 4.18
2018 210,648,610 4.11
2019 221,785,219 5.29
2020 239,165,288 7.84
2021 257,606,430 7.71
2022 264,973,116 2.86
2023 278,760,587 5.20
2024 298,128,817 6.95
(1) All dollar estimates are in thousands of current dollars (not adjusted for inflation). Statistics presented in thousands of dollars do not indicate more precision than statistics presented in.
Source: U.S. Department of Commerce, Bureau of Economic Analysis. 131
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The following table summarizes per capita personal income for the County, California and the United States for 2015 through 2024. This measure of income is calculated as the personal income of the residents of the area divided by the resident population of the area.
COUNTY OF ORANGE,
STATE OF CALIFORNIA AND THE UNITED STATES
Per Capita Personal Income
Year
County of
Orange California United States
2015 $59,238 $53,816 $46,289
2016 61,184 55,862 48,062
2017 63,510 58,214 48,974
2018 66,056 60,984 51,006
2019 69,616 64,219 53,311
2020 75,074 70,098 55,567
2021 81,505 76,882 59,151
2022 84,109 76,941 64,692
2023 88,897 81,255 66,298
2024 94,034 86,232 73,204
Source: U.S. Department of Commerce, Bureau of Economic Analysis.
Commercial Activity
A summary of historic taxable sales within the City and the County during the past five years for which data is available is shown in the following tables.
CITY OF LAGUNA BEACH
Taxable Transactions
Calendar Years 2020 through 2024
(Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2020 1,453 $274,151 2,320 $351,518
2021 1,297 380,176 2,078 498,067
2022 1,265 461,629 2,105 612,102
2023 1,196 445,205 2,038 544,327
2024 1,162 478,596 1,995 562,412
Source: State Department of Tax and Fee Administration. 132
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COUNTY OF ORANGE
Taxable Transactions
Calendar Years 2020 through 2024
(Dollars in Millions)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2020 76,066 $44,257 132,807 $63,834
2021 67,060 53,651 118,779 78,254
2022 67,272 58,099 119,697 88,027
2023 65,013 57,322 116,309 87,298
2024 65,391 56,820 117,426 86,337
Source: State Department of Tax and Fee Administration.
Transportation
The City has convenient access to the San Diego and Santa Ana freeways via Laguna Canyon Road and connections to the San Joaquin Hills Corridor Toll Road, San Diego and Newport freeways via Coast Highway. The Orange County Transit Authority provides bus service to Santa Ana, the county seat. In addition, the City operates its own municipal trolly service linking a seven-mile stretch along Coast Highway. Although the City does not have railroad facilities within the City, Amtrak, offering passenger services, has a platform in San Juan Capistrano located 10 miles away and in Irvine located 7 miles away. Air passenger and freight service is available at the nearby John Wayne Airport in Santa Ana. Long Beach Municipal Airport and Los Angeles International Airport are located just off the San Diego freeway about an hour’s drive from the City.
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APPENDIX B
FORM OF BOND COUNSEL OPINION
[Closing Date]
City of Laguna Beach
505 Forest Avenue
Laguna Beach, California 92651
Re: $__________ City of Laguna Beach Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) Limited Obligation Improvement Bonds
Ladies and Gentlemen:
We have acted as bond counsel in connection with the issuance by the City of Laguna Beach (the “City”) for Underground Utility Assessment District No. 2021-3 (Fairview/La Brea), City of Laguna Beach, County of Orange, State of California (the “District”), of $__________ aggregate principal amount of the City of Laguna Beach Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) Limited Obligation Improvement Bonds (the “Bonds”).
The proceedings to form the District and levy the assessment therein have been conducted pursuant to the Municipal Act of 1913, Division 12 (commencing with Section 10000) of the California Streets and Highways Code (the “1913 Act”) and the Bonds are issued pursuant to the provisions of the Improvement Bond Act of 1915, Division 10 (commencing with Section 8500) of the California Streets and Highways Code (collectively with the 1913 Act, the “Acts”), a resolution adopted by the City Council of the City on January 13, 2026 (the “Resolution”), and that certain Fiscal Agent Agreement, dated as of May 1, 2026, between the City and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Agreement”).
We have examined the Acts, the Resolution, the Agreement, and certified copies of the proceedings taken for the issuance and sale of the Bonds. As to questions of fact which are material to our opinions, we have relied upon the representations of the City contained in the Agreement, and in certificates of its authorized officers which have been delivered to us for the purpose of supplying such facts, without having undertaken to verify the accuracy of any such representations by independent investigation.
Based upon such examination, we are of the opinion, as of the date hereof, that the proceedings referred to above have been taken in accordance with the laws and the Constitution of the State of California, and that the Bonds, having been issued in duly authorized form and executed by the proper officials and delivered to and paid for by the purchaser thereof, and the Agreement, having been duly authorized and executed by the proper officials, constitute the legally valid and binding obligations of the District enforceable in accordance with their terms subject to the qualifications specified below. Except where funds are otherwise available, as may be permitted by law, the Bonds are payable, as to both principal and interest, solely from certain 134
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assessments to be levied and collected within the District and certain other funds available therefor held under the Agreement.
The Internal Revenue Code of 1986, as amended (the “Code”), sets forth certain investment, rebate and related requirements which must be met subsequent to the issuance and delivery of the Bonds for the interest on the Bonds to be and remain exempt from federal income taxation. Noncompliance with such requirements could cause the interest on the Bonds to be subject to federal income taxation retroactive to the date of issuance of the Bonds. Pursuant to the Agreement, the City has covenanted to comply with the requirements of the Code and applicable regulations promulgated thereunder.
We are of the opinion that, under existing statutes, regulations, rulings and court decisions, and assuming compliance by the City with the aforementioned covenants, the interest on the Bonds is excluded from gross income for purposes of federal income taxation and that interest on the Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals; however, interest on the Bonds is taken into account in determining the annual adjusted financial statement income of certain corporations for the purpose of computing the alternative minimum tax imposed on certain corporations.
We are further of the opinion that interest on the Bonds is exempt from State of California personal income tax.
Although interest on the Bonds is excluded from gross income for purposes of federal income taxation, the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these tax consequences will depend on the recipient’s particular tax status or other items of income or deduction. We express no opinion regarding any such consequences.
The opinions expressed herein may be affected by actions which may be taken (or not taken) or events which may occur (or not occur) after the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions or events are taken or occur or are not taken or do not occur.
The rights of the owners of the Bonds and the enforceability of the Bonds and the Agreement, may be subject to bankruptcy, insolvency, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted, and their enforcement may be subject to the exercise of judicial discretion in accordance with general principles of equity.
Respectfully submitted,
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APPENDIX C
SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT 136
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APPENDIX D
FORM OF CONTINUING DISCLOSURE CERTIFICATE
$[PAR]
CITY OF LAGUNA BEACH
UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2021-3
(FAIRVIEW/LA BREA)
LIMITED OBLIGATION IMPROVEMENT BONDS
This CONTINUING DISCLOSURE CERTIFICATE (this “Disclosure Certificate”) is executed and delivered by the City of Laguna Beach, California (the “City”), in connection with the issuance by the City of the bonds captioned above (the “Bonds”). The Bonds are being issued pursuant to a Fiscal Agent Agreement dated as of May 1, 2026 (the “Fiscal Agent Agreement”), by and between the City of Laguna Beach (the “City”) and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”). The City hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2- 12(b)(5).
Section 2. Definitions. In addition to the definitions set forth above and in the Fiscal Agent Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means March 1 after the end of the City’s fiscal year. “Dissemination Agent” means DTA Public Finance, Inc., or any successor Dissemination Agent, designated in writing by the City and which has filed with the City a written acceptance of such designation.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. 137
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“Official Statement” means the final official statement dated ______, 2026, executed by the City in connection with the issuance of the Bonds.
“Participating Underwriter” means Oppenheimer & Co. Inc., the original purchaser of the Bonds required to comply with the Rule in connection with offering of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as it may be amended from time to time.
Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing March 1, 2027 with the report for fiscal year 2025-26, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s fiscal year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b).
The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder.
(b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City shall provide (or cause the Dissemination Agent to provide) a notice to the MSRB in a timely manner, in an electronic format as prescribed by the MSRB.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.
Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following:
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(a) The City’s audited financial statements for the preceding fiscal year prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) Unless otherwise provided in the audited financial statements filed on or before the Annual Report Date, financial information and operating data with respect to the City for the preceding fiscal year, substantially similar to that provided in the corresponding tables in the Official Statement, as follows:
(i) the principal amount of Bonds outstanding as of the September 3 preceding the filing of the Annual Report;
(ii) the balance in each fund and account established under the Fiscal Agent Agreement as of the September 30 preceding the filing of the Annual Report; (iii) the aggregate assessed valuation (land and improvements) for all parcels with unpaid assessments in the Assessment District for the current fiscal year and the prior fiscal year;
(iv) the current delinquency rate for the Assessment District indicating, on a summary basis, the annual assessment lien, the amount delinquent, the percent delinquent and the delinquent number of parcels; and
(v) a listing of the principal property owners representing 5% or more of the annual assessment installment.
(c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
(d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public through the MSRB. The City shall clearly identify each such other document so included by reference. If the document included by reference is a final official statement, it must be available from the MSRB.
Section 5. Reporting of Listed Events.
(a) The City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
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(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties.
(4) Unscheduled draws on credit enhancements reflecting financial difficulties.
(5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds. (7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes, if applicable.
(12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person.
(13) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material. 140
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(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties.
(b) Upon the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Fiscal Agent Agreement.
(c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14) and (a)(15) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier "material" with respect to certain notices, determinations or other events affecting the tax status of the Bonds.
The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Upon the occurrence of any of these Listed Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in paragraph (b) above.
(d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. (e) For purposes of Section 5(a)(15) and (16), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule.
Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.
Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in 141
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full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).
Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be DTA Public Finance, Inc. Any Dissemination Agent may resign by providing 30 days’ written notice to the City.
Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent Agreement with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.
If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.
If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. 142
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A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 11. Default. If the City fails to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.
Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the City hereunder, and shall not be deemed to be acting in any fiduciary capacity for the City, the Bond holders or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
(b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder.
Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. 143
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Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.
Section 15. Governing Law and Venue. This Disclosure Certificate shall be governed by and construed in accordance with the laws of the State of California. Venue shall be in the County of Orange, California.
Date: ______, 2026
CITY OF LAGUNA BEACH
By:
Laura Parisi, CPA
City Treasurer
AGREED AND ACCEPTED:
DTA Public Finance, Inc.,
as Dissemination Agent
By:
Name:
Title:
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APPENDIX E
THE BOOK-ENTRY SYSTEM
The following description of the Depository Trust Company (“DTC”), the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.
Neither the issuer of the Bonds (the “Issuer”) nor the trustee, fiscal agent or paying agent appointed with respect to the Bonds (the “Agent”) take any responsibility for the information contained in this Appendix.
No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.
1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each maturity of the Securities in the aggregate principal amount of such maturity, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.
2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also 145
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facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”).
DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has an S&P Global Ratings rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information contained on this Internet site is not incorporated herein by reference.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners.
The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities 146
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may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Securities within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).
8. Principal, redemption price and interest payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Authority or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, redemption price and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
9. If applicable, a Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to tender/remarketing agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to tender/remarketing agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Securities to tender/remarketing agent’s DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the Authority or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered.
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E-4
11. The Authority may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof.
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F-1
APPENDIX F
CITY OF LAGUNA BEACH
UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2021-3
(FAIRVIEW/LA BREA)
ASSESSMENT DIAGRAM
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G-1
APPENDIX G
ENGINEER’S REPORT
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H-1
APPENDIX H
LIST OF UNPAID ASSESSMENTS
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MEMORANDUM
ANZEL GALVAN LLP | 595 Pacific Avenue, 4th Floor, San Francisco, CA 94133 | +1.415.848.9165 | ANZELGALVAN.COM From: Anzel Galvan LLP
To: Members of the City Council,
City of Laguna Beach, California
Date: April 14, 2026
Subject: Official Statement for City of Laguna Beach Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) Limited Obligation Improvement Bonds The Preliminary Official Statement (the “POS”) for the above‑referenced bonds (the “Bonds”) is the primary disclosure document for the Bonds and provides information regarding the City, Underground Utility Assessment District No. 2021‑3 (Fairview/La Brea), City of Laguna Beach, Orange County, State of California, and the terms and conditions of the Bonds. A copy of the POS is included in the staff report for this item as Attachment 3.
The City must exercise reasonable care to avoid material misstatements or omissions in public statements, including the POS, that are used to offer or sell securities. The City also may not knowingly or recklessly include material misstatements or misleading statements in other public statements that are reasonably expected to reach investors or the securities markets while its securities are outstanding (for example, certain budget documents, financial reports and official press releases). The distribution of the POS by the City is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934, and the related anti‑fraud provisions. These laws require that the POS not omit or misstate facts that would be material to an investor in the Bonds. “Material” information is information for which there is a substantial likelihood that a reasonable investor would consider it important in deciding whether to buy, sell or hold the Bonds.
If the City Council concludes that the POS includes all material facts relating to the Bonds, the security for their repayment and other matters that a reasonable investor would consider important, it will be asked to adopt a resolution authorizing staff to assist the underwriter in complying with SEC Rule 15c2‑12 by executing a certificate to the effect that the POS is “deemed final” as of its date, except for certain permitted omissions such as offering prices, interest rates and other terms to be determined at pricing. This “deemed final” requirement arises under SEC Rule 15c2‑12 and technically applies to the underwriter, but the City customarily provides this certificate so the underwriter can satisfy its obligations; it does not mean the POS is perfect in every respect, but that the City has exercised reasonable care so that it does not contain any material misstatements or omissions.
The Securities and Exchange Commission (the “SEC”), which has regulatory authority over the City’s compliance with the federal securities laws, has issued guidance regarding the duties of governing body members in connection with their approval of disclosure documents such as the POS.
In its “Report of Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members of the Board of Supervisors” (Release No. 36761 / January 24, 1996) (the “Release”), the SEC stated that if a member of a governing body has knowledge of any facts or circumstances that Attachment 4
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| ANZELGALVAN.COM
an investor would want to know about prior to investing in municipal securities—whether relating to repayment of the securities, their tax‑exempt status, undisclosed conflicts of interest with interested parties, or otherwise—the official should endeavor to determine whether such facts are adequately disclosed in the official statement. The Release explains that appropriate steps may include becoming familiar with the official statement and questioning staff and the City’s financing team (including bond counsel, disclosure counsel, the municipal advisor and the underwriter) about the disclosure of such facts.
As elected officials of the City, Councilmembers are part of the governing body of the issuer of the Bonds. Any potential federal securities law liability arising out of the POS or other public statements would generally arise under these anti‑fraud provisions and would primarily relate to the City as issuer, but individual officials can, in some circumstances, be named in SEC enforcement actions where they were personally involved in making or approving materially misleading statements or were reckless in discharging their responsibilities. The purpose of the procedures described in this memorandum is to help the City and each Councilmember satisfy their responsibilities and reduce the risk of any such claims.
In reviewing the POS, each Councilmember should: (a) read at least the cover, the sections describing the Bonds and the security for their repayment, the description of the City and the Assessment District, and any risk factors; (b) consider whether you are aware of any financial, operational, legal, political or other issues (for example, significant litigation, financial stress, major policy changes or conflicts of interest) that might be important to an investor; and (c) if you are aware of such issues, raise them with City staff and the City’s financing team so they can determine whether and how they should be disclosed in the POS. Councilmembers are entitled to rely in good faith on the professional judgment of City staff and the City’s financing team, but should exercise reasonable care by reviewing the POS and asking questions about any language they do not understand or that appears incomplete or potentially misleading.
In connection with the Bonds, a Continuing Disclosure Certificate will be executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and to assist Oppenheimer & Co. Inc., the underwriter of the Bonds, in complying with SEC Rule 15c2‑12(b)(5).
Under this certificate, the City will agree to provide specified annual financial information and notices of certain listed events (such as payment defaults, rating changes and certain amendments to bond documents) to the municipal securities market for so long as the Bonds are outstanding, and failure to comply may be required to be disclosed in future bond offerings and can be the subject of SEC scrutiny.
The form of the Continuing Disclosure Certificate is included as Appendix D to the POS. 153
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$__________
CITY OF LAGUNA BEACH
UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2021-3
(FAIRVIEW/LA BREA)
LIMITED OBLIGATION IMPROVEMENT BONDS
______________________________
BOND PURCHASE AGREEMENT
______________________________
________, 2026
City of Laguna Beach
505 Forest Avenue
Laguna Beach, CA 92651
Ladies and Gentlemen:
Oppenheimer & Co. Inc. (the “Underwriter”), acting not as fiduciary or agent for you, but on behalf of itself, offers to enter into this Bond Purchase Agreement (the “Purchase Agreement”) with the City of Laguna Beach (the “City”) in connection with the City of Laguna Beach Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) (the “Assessment District”) which, upon acceptance, will be binding upon the City and upon the Underwriter. This offer is made subject to acceptance of it by the City on the date hereof, and, if not accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the City at any time prior to the acceptance hereof by the City. Capitalized terms that are used in this Purchase Agreement and not otherwise defined herein shall have the respective meanings ascribed to them in the Fiscal Agent Agreement (as hereinafter defined).
The City acknowledges and agrees that: (i) the purchase and sale of the Bonds (as such term is defined below) pursuant to this Purchase Agreement is an arm’s-length commercial transaction between the City and the Underwriter; (ii) in connection therewith and with the discussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriter is and has been acting solely as a principal and is not and has not been acting as a “municipal advisor” (as such term is defined in Section 15B of the Securities Exchange Act of 1934, as amended) to the City; (iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the City with respect to the offering contemplated hereby or the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriter has provided other services or is currently providing other services to the City on other matters); (iv) the Underwriter has financial interests that may differ from and be adverse to those of the City; and (v) the City has consulted its own legal, financial and other advisors to the extent that it has deemed appropriate for this transaction. The Underwriter has provided to the City prior disclosures under Rule G-17 of the Municipal Securities Rulemaking Board which have been received by the City.
Attachment 5
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2 1. Purchase, Sale and Delivery of the Bonds; Establishment of Issue Price. (a) Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter agrees to purchase from the City, and the City agrees to sell to the Underwriter, all (but not less than all) of $__________ aggregate principal amount of the City of Laguna Beach Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) Limited Obligation Improvement Bonds (the “Bonds”), bearing interest (payable semiannually on March 2 and September 2 in each year, commencing September 2, 2026) at the rates per annum and maturing on the dates and in the amounts set forth in Appendix A attached hereto and incorporated herein.
(b) The purchase price for the Bonds shall be $________ (representing the par amount of the Bonds, plus an original issue premium of $______ and less an Underwriter’s discount of $_______).
(c) The Bonds are being issued to: (i) pay for costs to finance the design and construction of improvements to underground overhead utilities within the Assessment District, (ii) fund a deposit to the Reserve Fund for the Bonds, (iii) finance capitalized interest for the Bonds through September 2, 2026, and (iv) pay costs of issuance. (d) The Underwriter agrees to assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at Closing an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Appendix B with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the City and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. (e) The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Appendix A attached hereto. Appendix A also sets forth, identified under the column “Subject to Hold the Offering Price Rule,” as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement) and (ii) the 10% test has not been satisfied and for which the City and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the City to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
(1) the close of the fifth (5th) business day after the sale date; or (2) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Underwriter shall promptly advise the City when it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, if 155
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3 that occurs prior to the close of the fifth (5th) business day after the sale date. (f) The Underwriter confirms that:
(1) Any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(A) (i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter, (B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or brokerdealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public.
(2) Any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires. (g) The City acknowledges that, in making the representation set forth in this section, the Underwriter will rely on (1) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (2) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. 156
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4 (h) The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.
Further, for purposes of this section:
(1) “public” means any person other than an underwriter or a related party; (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public); (3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (4) “sale date” means the date of execution of this Purchase Agreement by all parties.
(i) The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable and subject to redemption as provided in, that certain Fiscal Agent Agreement, dated as of May 1, 2026 (the “Fiscal Agent Agreement”), by and between the City and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”), approved by a resolution (the “Resolution”), adopted by the City Council of the City (the “City Council”) on ______, 2026.
(j) Pursuant to the authorization of the City, the Underwriter has distributed copies of the Preliminary Official Statement, dated [POS Date], relating to the Bonds, which, together with the cover page and all appendices thereto, is herein called the “Preliminary Official Statement” and which, as amended with the prior approval of the Underwriter and executed by the City, will be referred to herein as the “Official Statement.” The City hereby ratifies the use by the Underwriter of the Preliminary Official Statement and the Official Statement and authorizes the Underwriter to use and distribute the Fiscal Agent Agreement, the Official Statement, the Continuing Disclosure Certificate, dated the Closing Date (defined below) (the “Disclosure Certificate”), executed by the City, and other documents or contracts to which the City is a party, including this Purchase Agreement, and all information contained therein, and all other documents, certificates and statements furnished by the City to the Underwriter in connection with the transactions contemplated by this Purchase Agreement, in connection with the offer and sale of the Bonds by the Underwriter. (k) The Underwriter agrees to make a bona fide public offering of the Bonds at the initial offering price set forth in the Official Statement; however, the Underwriter reserves the right to make concessions to dealers and to change such initial offering price as the Underwriter shall 157
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5 deem necessary in connection with the marketing of the Bonds. The Underwriter agrees that, in connection with the public offering and initial delivery of the Bonds to the purchasers thereof from the Underwriter, the Underwriter will deliver or cause to be delivered to each purchaser a copy of the Official Statement prepared in connection with the Bonds. The Underwriter also agrees to notify the City by phone or in writing of the “end of the underwriting period,” as defined in Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”). Terms defined in the Official Statement are used herein as so defined.
(l) The City shall deliver, or cause to be delivered, to the Underwriter two (2) executed copies of the final Official Statement prepared in connection with the Bonds, in such form as shall be approved by the City and the Underwriter and such additional conformed copies thereof as the Underwriter may reasonably request. The City deems the Preliminary Official Statement to be “final” as of its date for purposes of Rule 15c2-12. By acceptance of this Purchase Agreement, the City hereby authorizes the use of copies of the Official Statement in connection with the public offering and sale of the Bonds and ratifies and approves the distribution by the Underwriter of the Preliminary Official Statement.
(m) At approximately 8:30 a.m., Pacific Time, on [Closing Date], or at such earlier or later time or date as shall be agreed upon by the City and the Underwriter (such time and date herein referred to as the “Closing Date”), the City shall deliver (i) through the facilities of The Depository Trust Company, all Bonds (being in book-entry form, registered in the name of Cede & Co. and having the CUSIP numbers assigned to them printed thereon) duly executed by the officers of the City as provided in the Fiscal Agent Agreement and with facsimile seals printed thereon, and (ii) to the Underwriter at the offices of Best Best & Krieger LLP, the other documents herein mentioned, and the Underwriter shall accept such delivery and pay the purchase price of the Bonds in same day funds (such delivery and payment being herein referred to as the “Closing”). The Bonds, as so registered, shall be made available to the Underwriter for inspection not later than the first business day before the Closing Date.
2. Representations, Warranties and Agreements of the City. The City represents, warrants and covenants to and agrees with the Underwriter that:
(a) The City is duly organized and validly existing as a municipal corporation under the laws of the State; and has, and at the Closing Date will have, as the case may be, full legal right, power and authority (i) to execute, deliver and perform its obligations under this Purchase Agreement, the Fiscal Agent Agreement, the Resolution and the Disclosure Certificate (collectively, the “City Documents”), (ii) to execute and deliver the Official Statement, and to carry out all transactions contemplated by each of the City Documents, (iii) to adopt the Resolution approving the Fiscal Agent Agreement and enter into the other authorizing documents, (iv) to issue, sell and deliver the Bonds to the Underwriter pursuant to the Fiscal Agent Agreement as provided herein, and (v) to carry out, give effect to and consummate the transactions contemplated by the Official Statement and the City Documents;
(b) The City Council has duly and validly (i) taken or caused to be taken, all proceedings necessary under the Constitution and the laws of the State of California in order to form the Assessment District and to confirm assessments (the “Assessments”) on the parcels located within the Assessment District in the respective amounts shown in the report of the Assessment Engineer, approved by the City Council on January 13, 2026 (the “Engineer’s Report”), to cause each of the Assessments to be a valid lien upon the parcel upon which it was confirmed and to authorize the sale and issuance of the Bonds, (ii) authorized and approved the execution and delivery 158
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6 of the City Documents and the Bonds, (iii) authorized the preparation and delivery of the Preliminary Official Statement and the Official Statement, and (iv) approved the performance by the City of its obligations contained in, and the taking of any and all action as may be necessary to carry out, give effect to and consummate the transactions contemplated by each of the City Documents (including, without limitation, the collection of the Assessments) and the Assessment District has been validly formed, the Assessments have been validly confirmed and constitute liens on the respective parcels within the Assessment District, and (assuming due authorization, execution and delivery by other parties thereto, where necessary) the City Documents and the Bonds will constitute the valid, legal and binding obligations of the City and will be enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general and to the application of equitable principles if equitable remedies are sought;
(c) The City is not in breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the City is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the performance by the City of its obligations under the Bonds or the City Documents, and compliance with the provisions of each thereof, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State, the United States of America, or of any department, division, agency or instrumentality thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution, indenture, contract, agreement or other instrument to which the City is a party or is otherwise subject or bound;
(d) Except as may be required under the “blue sky” or other securities laws of any jurisdiction, all approvals, consents, authorizations, elections and orders of or filings or registrations with any State governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the City of its obligations hereunder, or under the City Documents or the Bonds have been obtained and are in full force and effect; (e) Except as disclosed in the Official Statement, there are, to the best knowledge of the City, no outstanding assessment liens against any of the properties within the Assessment District which are senior to or on a parity with the Assessments; (f) Each of the Assessments has been duly and lawfully confirmed, may be collected in installments under the laws of the State, and constitutes a valid and legally binding lien on the property on which it has been confirmed;
(g) As of the date thereof, the Preliminary Official Statement did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The information contained in the Official Statement is, as of the date hereof and will be, as of the Closing Date and as of the date of any supplement or amendment thereto pursuant to paragraph (i) below, true, correct and complete in all material respects and does not, as of the date hereof and will not, as of the Closing Date or as of the date of any supplement or amendment thereto pursuant to paragraph (i) below, contain any untrue statement of a material fact or omit to state a 159
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7 material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (h) Until the date which is twenty-five (25) days after the “end of the underwriting period” (as hereinafter defined) if any event shall occur of which the City becomes aware as a result of which it may be necessary to supplement the Official Statement in order to make the statements therein, in light of the circumstances existing at such time, not misleading, the City shall forthwith notify the Underwriter of any such event, and shall cooperate fully in furnishing any information available to it for any supplement to the Official Statement necessary so that the statements therein as so amended or supplemented will not be misleading in light of the circumstances existing at such time; and the City shall promptly furnish to the Underwriter a reasonable number of copies of such supplement (as used herein, the term “end of the underwriting period” means the later of such time as (i) the City delivers the Bonds to the Underwriter, or (ii) the Underwriter does not retain, directly or as a member of an underwriting syndicate, an unsold balance of the Bonds for sale to the public);
(i) If the information contained in the Official Statement is amended or supplemented pursuant to paragraph (h) above, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such paragraph), at all times subsequent thereto up to and including the Closing Date, the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such information therein, in light of the circumstances under which it was presented, not misleading;
(j) The Fiscal Agent Agreement creates a valid pledge of the Assessments and the moneys in the Redemption Fund, the Improvement Fund and the Reserve Fund established pursuant to the Fiscal Agent Agreement, including the investments thereof, subject in all cases to the provisions of the Fiscal Agent Agreement permitting the application thereof for the purposes and on the terms and conditions set forth therein; and said pledge constitutes a first lien on and security interest in all of the foregoing;
(k) Except as disclosed in the Preliminary Official Statement and the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending for which the City has been served or, to the knowledge of the City, threatened against the City (i) which would materially adversely affect the ability of the City to perform its obligations under the City Documents or the Bonds, or (ii) seeking to restrain or to enjoin: (A) the development of any of the land within the Assessment District, (B) the issuance, sale or delivery of the Bonds, (C) the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or (D) the collection or application of the Assessments, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Bonds, the City Documents, any tentative or final subdivision map or building permits applicable to property within the Assessment District, any other instruments relating to the development of any of the property within the Assessment District, or any action contemplated by any of said documents, or (iii) in any way contesting the completeness or accuracy of the Preliminary Official Statement, or the Official Statement or the powers or authority of the City with respect to the Bonds, the City Documents, or any action of the City contemplated by any of said documents; nor is there any action pending or, to the knowledge of the City, threatened against the City which alleges that interest on the Bonds is not excludable from gross income for federal income tax purposes or is not exempt from California personal income taxation;
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8 (l) The City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order for the Underwriter to qualify the Bonds for offer and sale under the “blue sky” or other securities laws and regulations of such states and other jurisdictions of the United States of America as the Underwriter may designate; provided, however, the City shall not be required to register as a dealer or a broker of securities or to consent to service of process in connection with any “blue sky” filing;
(m) Any certificate signed by any authorized official of the City authorized to do so shall be deemed a representation and warranty to the Underwriter as to the statements made therein;
(n) The City will apply the proceeds of the Bonds in accordance with the Fiscal Agent Agreement and as described in the Preliminary Official Statement and the Official Statement; (o) Based upon projections which the City believes are reasonable, the Assessments supporting the Bonds, when levied and collected by the City in accordance with the terms of the Assessments formula, assuming normal and reasonable delinquency rates, will provide a yearly cash flow sufficient to make timely payment of principal and interest on the Bonds; (p) The City is not aware of any toxic waste conditions or adverse soils condition which would impair development within the Assessment District; (q) The City will undertake, pursuant to the Disclosure Certificate, to provide annual reports and notice of certain events. Except as described in the Preliminary Official Statement and the Official Statement, the City has not failed to comply, in any material respects, with any continuing disclosure undertaking previously entered into by it pursuant to the provisions of Rule 15c2-12 for each of the past five (5) years;
(r) The Official Statement (except the portions thereof relating to DTC or its book-entry only system and the information under the sections entitled “LEGAL MATTERS” and “TAX MATTERS,” and APPENDIX E - “THE BOOK-ENTRY SYSTEM,” as to which no view need be expressed) is, as of the date thereof, and will be, as of the Closing Date, true, correct and complete in all material respects; and the Official Statement (except the portions thereof mentioned above, as to which no view need be expressed) does not, as of the date thereof, and will not, as of the Closing Date, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and
(s) The Preliminary Official Statement heretofore delivered to the Underwriter has been deemed final by the City as of its date, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(1) of Rule 15c2-12. The City hereby covenants and agrees that, within seven (7) business days from the date hereof, or (upon reasonable written notice from the Underwriter) within sufficient time to accompany any confirmation requesting payment from any customers of the Underwriter, the City shall cause a final printed or electronic form of the Official Statement to be delivered to the Underwriter in a quantity mutually agreed upon by the Underwriter and the City so that the Underwriter may comply with paragraph (b)(4) of Rule 15c2-12 and Rules G-12, G-15, G-32 and G-36 of the Municipal Securities Rulemaking Board.
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9 3. Conditions to the Obligations of the Underwriter. The obligations of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and agreements on the part of the City contained herein, as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the City made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the City of its obligations to be performed hereunder at or prior to the Closing Date and to the following additional conditions:
(a) At the Closing Date, the City Documents, the Resolution of Formation and any other applicable agreements shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Purchase Agreement, all such actions as, in the opinion of Best Best & Krieger LLP, Bond Counsel for the City, shall be necessary and appropriate; (b) Between the date hereof and the Closing Date, the market price or marketability of the Bonds at the initial offering prices set forth in the Official Statement shall not have been materially adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds), by reason of any of the following:
(1) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America or recommended to the Congress by the President of the United States, the Department of the Treasury, the Internal Revenue Service, or favorably reported for passage to either House of Congress by any committee of such House to which such legislation had been referred for consideration or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest that would be received by the owners of the Bonds beyond the extent to which such interest is subject to taxation as of the date hereof; (2) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Fiscal Agent Agreement is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, or of the Bonds, including any or all underlying arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws, rules or regulations as amended and then in effect; (3) any amendment to the federal or State Constitution or action by any federal or State court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the City, its property, income, securities (or interest thereon), the validity or 162
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10 enforceability of the Assessments or the ability of the City to construct or acquire the improvements as contemplated by the City Documents, the Resolution of Formation and the Official Statement; (4) any event occurring, or information becoming known, which, in the reasonable judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Official Statement, or results in the Official Statement containing any untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
(5) there shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; (6) the declaration of a general banking moratorium by federal, State of New York or State of California authorities, or the general suspension of trading on any national securities exchange or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on the New York Stock Exchange or other national securities exchange, whether by virtue of determination by that exchange or by order of the Securities and Exchange Commission (the “SEC”) or any other governmental authority having jurisdiction that, in the Underwriter’s reasonable judgment, makes it impracticable for the Underwriter to market the Bonds or enforce contracts for the sale of the Bonds; (7) the imposition by the New York Stock Exchange or other national securities exchange, or any governmental authority, of any material restrictions not now in force with respect to the Bonds or obligations of the general character of the Bonds or securities generally, or the material increase of any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; (8) a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred;
(9) there shall have been any material adverse change in the affairs of the City;
(10) there shall be established any new restriction on transactions in securities materially affecting the free market for securities (including the imposition of any limitation on interest rates) or the extension of credit by, or a change to the net capital requirements of, underwriters established by the New York Stock Exchange, the SEC, any other federal or State agency or the Congress of the United States, or by Executive Order; or
(11) any proceeding shall have been commenced or be threatened in writing by the SEC against the City; or
(12) the commencement of any action of the character described in Section 2(r); or
(13) a stop order, release, regulation, or no-action letter by or on behalf of the SEC or any other governmental agency having jurisdiction of the subject matter shall have been issued or made to the effect that the issuance, offering, or sale of the Bonds, including all the underlying obligations as contemplated hereby or by the Official Statement, or any document relating to the issuance, offering or 163
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11 sale of the Bonds is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act of 1933, as amended, the Exchange Act, and the Trust Indenture Act of 1939, as amended.
(c) On the Closing Date, the Underwriter shall have received counterpart originals or certified copies of the following documents, in each case satisfactory in form and substance to the Underwriter:
(1) The City Documents and the Resolution of Formation together with a certificate dated as of the Closing Date of the City Clerk of the City, as applicable, to the effect that each such document is a true, correct and complete copy of the one duly adopted by the City Council and that it has not been amended, modified or rescinded since its adoption (except as may have been agreed to by the Underwriter) and is in full force and effect as of the Closing Date; (2) The Official Statement duly executed;
(3) An unqualified approving opinion, dated the Closing Date and addressed to the City, of Best Best & Krieger LLP, Bond Counsel for the City, substantially in the form set forth in Appendix B to the Official Statement and a reliance letter dated the Closing Date and addressed to the Underwriter, to the effect that such approving opinion addressed to the City may be relied upon by the Underwriter to the same extent as if such opinion was addressed to it; (4) A supplemental opinion, dated the Closing Date and addressed to the Underwriter, of Bond Counsel to the effect that (i) the statements contained in the Official Statement on the cover and under the captions “INTRODUCTION,” “THE BONDS,” “SECURITY FOR THE BONDS,” “LEGAL MATTERS” and “TAX MATTERS,” APPENDIX B – “FORM OF BOND COUNSEL OPINION,” and APPENDIX C – “SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT,” insofar as such statements purport to summarize certain provisions of the Fiscal Agent Agreement, Bond Counsel’s final approving legal opinion with respect to the Bonds, and federal and State tax law, and excluding any material that may be treated as included under such captions by cross-reference or reference to other documents or sources or information regarding DTC or the book entry system, present an accurate summary of such provisions; (ii) the Bonds are exempt from registration under the Securities Act of 1933, as amended, and the Fiscal Agent Agreement is exempt from qualification under the Trust Indenture Act of 1939, as amended; and (iii) the Purchase Agreement and the Disclosure Certificate have been duly authorized, executed and delivered by the City and, assuming due authorization, execution and delivery by the other parties thereto, constitute legal, valid and binding agreements of the City enforceable in accordance with their respective terms, subject to laws relating to bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and the application of equitable principles if equitable remedies are sought; (5) An opinion, dated the Closing Date and addressed to the City and the Underwriter, of Anzel Galvan LLP, Disclosure Counsel, substantially in the form of Appendix C; (6) A Certificate, dated the Closing Date and signed by an authorized representative of the City, ratifying the use and distribution by the Underwriter of the Preliminary Official Statement and the Official Statement in connection with the offering and sale of the Bonds; and certifying that (i) the representations and warranties of the City contained in Section 2 hereof are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) to the best of his or her knowledge, no event has occurred since the date of 164
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12 the Official Statement affecting the matters contained therein which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make the statements and information contained in the Official Statement not misleading in any material respect and the Bonds and the City Documents conform as to form and tenor to the descriptions thereof contained in the Official Statement and (iii) the City has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied under the City Documents and the Official Statement at or prior to the Closing Date;
(7) An opinion, dated the Closing Date and addressed to the Underwriter, of the City Attorney, to the effect that (i) to the best of his or her knowledge, except as described in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending for which the City has been served or threatened in any way affecting the existence of the City or the titles of its officers to their respective offices, or seeking to restrain or to enjoin the development of property within the Assessment District, the issuance, sale or delivery of the Bonds or the exclusion from gross income for federal income tax purposes or State personal income taxes of interest on the Bonds, or the application of the proceeds thereof in accordance with the Fiscal Agent Agreement, or the collection or application of the Assessments to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Fiscal Agent Agreement, the Resolution of Formation, the Purchase Agreement or any action of the City or which the City contemplated by any of said documents; (ii) the City is duly organized and validly existing under the laws of the State, with, as the case may be, full legal right, power and authority to issue the Bonds and to perform all of its obligations under the Purchase Agreement, the Bonds and the Fiscal Agent Agreement; (iii) the Resolution, which authorized issuance of the Bonds and approved the form and substance of the Fiscal Agent Agreement, the Purchase Agreement and the Disclosure Certificate has been duly adopted by the City Council of the City; (iv) to the best of his or her knowledge after due inquiry, the City has obtained all approvals, consents, authorizations, elections and orders of or filings or registrations with any State governmental authority, board, agency or commission having jurisdiction which constitute a condition precedent to the levy of the Assessments, the issuance of the Bonds or the performance by the City of its obligations thereunder or under the Fiscal Agent Agreement, except that no opinion is expressed regarding compliance with “blue sky” or other securities laws or regulations whatsoever; (v) the City Council has duly and validly adopted the resolutions related to the formation of the Assessment District and the Resolution of Formation at meetings of the City Council which were called and held pursuant to law and with all public notice required by law, and the resolutions relating to the formation of the Assessment District and the Resolution of Formation are now in full force and effect and have not been amended; (vi) the City has duly authorized, executed and delivered the Purchase Agreement, the Fiscal Agent Agreement and the Bonds and has duly authorized the preparation and delivery of the Official Statement; (vii) the Purchase Agreement, the Disclosure Certificate, the Fiscal Agent Agreement and the Bonds constitute legal, valid and binding agreements of the City, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general and to the application of equitable principles if equitable remedies are sought; and (viii) the Assessment District has been validly formed, and the Assessments have been duly and validly authorized in accordance with the provisions of the Improvement Bond Act of 1915, as amended, being Division 10 of the California Streets and Highways Code and, except as the same may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights, by equitable principles and by the exercise of judicial discretion in 165
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13 appropriate cases, a lien to secure payment of the Assessments has been imposed on all the parcels in the Assessment District specified in the Official Statement; (8) One counterpart original or copy certified by the Clerk of the City of a transcript of all proceedings relating to the authorization, issuance, sale and delivery of the Bonds; (9) A certified copy of the general resolution of the Fiscal Agent authorizing the execution and delivery of any City Documents to which the Fiscal Agent is a party; (10) An opinion, dated the Closing Date and addressed to the Underwriter and the City, of counsel to the Fiscal Agent in form and substance acceptable to the Underwriter; (11) The Certificate of the Fiscal Agent, dated the Closing Date, to the effect that (i) the Fiscal Agent is duly organized and existing as a national association under the laws of the State having the full power and authority to perform its duties under the Fiscal Agent Agreement; (ii) the Fiscal Agent is duly authorized to accept the obligations created by the Fiscal Agent Agreement and to authenticate the Bonds pursuant to the terms of the Fiscal Agent Agreement; (iii) to the knowledge of the undersigned, no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Fiscal Agent that has not been obtained is or will be required for the authentication of the Bonds or the consummation by the Fiscal Agent of the other transactions contemplated to be performed by the Fiscal Agent in connection with the authentication of the Bonds and the acceptance and performance of the obligations created by the Fiscal Agent Agreement; and (iv) to the knowledge of the undersigned, compliance with the terms of the Fiscal Agent Agreement will not conflict with, or result in a violation or breach of, or constitute a default under, any loan agreement, indenture, bond, note, resolution or any other agreement or instrument to which the Fiscal Agent is a party or by which it is bound, or any law or any rule, regulation, order or decree of any court or governmental agency or body having jurisdiction over the Fiscal Agent or any of its activities or properties; (12) The Disclosure Certificate;
(13) A certificate of NV5, Inc., dated the Closing Date, to the effect that (i) the statements contained in the Preliminary Official Statement and the Official Statement relating to the size and location of the Assessment District, the amounts of the Assessments and the Engineer’s Report and all other information furnished by it, or derived from the Engineer’s Report, therein do not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading and (ii) in the opinion of NV5, Inc., the Assessments, as set forth in the Engineer's Report, have been spread in conformance with the requirements of the Municipal Improvement Act of 1913 (Division 12 of the California Streets and Highways Code); (14) A certificate of the City, dated the Closing Date, in a form acceptable to Bond Counsel, that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended;
(15) A copy of Internal Revenue Service Form 8038-G, executed by an authorized officer of the City;
(16) An opinion of Kutak Rock LLP, counsel to the Underwriter, addressed to the Underwriter and in form and substance acceptable to the Underwriter; and 166
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14 (17) Such additional legal opinions, certificates, instruments and other documents as the Underwriter or Bond Counsel may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the statements and information contained in the Preliminary Official Statement and the Official Statement, of the City’s representations and warranties contained herein, and the due performance or satisfaction by the City and the Fiscal Agent at or prior to the Closing of all agreements then to be performed and all conditions then to be satisfied by either of them in connection with the transactions contemplated hereby by the City Documents and by the Official Statement.
If the City shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Purchase Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and neither the Underwriter nor the City shall be under any further obligation hereunder, except that the respective obligations of the City and the Underwriter set forth in Section 4 and Section 5 hereof shall continue in full force and effect.
4. Conditions of the City’s Obligations. The City’s obligations hereunder are subject to the Underwriter’s performance of their obligations hereunder, and are also subject to the following conditions:
(a) As of the Closing Date, no litigation shall be pending or, to the knowledge of the duly authorized officer of the City executing the certificate referred to in Section 3 hereof, threatened, to restrain or enjoin the issuance or sale of the Bonds or in any way affecting any authority for or the validity of the Bonds or the City Documents or the existence or powers of the City; and
(b) As of the Closing Date, the City shall receive the approving opinions of Bond Counsel and Disclosure Counsel referred to in Section 3 hereof, dated as of the Closing Date.
5. Expenses.
Whether or not the Bonds are delivered to the Underwriter set forth herein:
(a) The Underwriter shall be under no obligation to pay, and the City shall pay or cause to be paid (out of any legally available funds of the City) all expenses incident to the performance of the City’s obligations hereunder, including, but not limited to, the cost of printing and delivering the Bonds to DTC, the cost of printing, distribution and delivery of the Fiscal Agent Agreement, the Preliminary Official Statement, the Official Statement and all other agreements and documents contemplated hereby (and drafts of any thereof) in such reasonable quantities as requested by the Underwriter; the cost of the overlapping debt statement and the fees and disbursements of the Fiscal Agent for the Bonds, Disclosure Counsel, the City’s municipal advisor, the City’s Assessment District administrator and Bond Counsel and any accountants, engineers or any other experts or consultants the City have retained in connection with the Bonds; and (b) The City shall be under no obligation to pay, and the Underwriter shall pay, CUSIP Bureau and CDIAC fees; the cost of preparation of any “blue sky” or legal investment memoranda; expenses to qualify the Bonds for sale under any “blue sky” or other state securities laws; and all other expenses incurred by the Underwriter in connection with its public offering and 167
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15 distribution of the Bonds (except those specifically enumerated in paragraph (a) of this Section), including the fees and disbursements of its counsel and any advertising expenses.
The City acknowledges that the Underwriter will pay from the underwriter’s expense allocation of the underwriting discount certain fees, including the applicable per bond assessment charged by the California Debt and Investment Advisory Commission.
6. Notices. Any notice or other communication to be given to the City under this Purchase Agreement may be given by delivering the same in writing to the City of Laguna Beach, 505 Forest Avenue, Laguna Beach, California 92651, Attention: Assistant City Manager/Chief Financial Officer; any notice or other communication to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Oppenheimer & Co. Inc., 135 Main Street, Suite 1700, San Francisco, California 94105, Attention: Municipal Capital Markets Group.
7. Parties in Interest. This Purchase Agreement is made solely for the benefit of the City and the Underwriter (including their successors or assigns), and no other person shall acquire or have any right hereunder or by virtue hereof. This Purchase Agreement shall not be assigned by the City or the Underwriter.
8. Survival of Representations, Warranties and Agreements. The representations, warranties and agreements of the City set forth in or made pursuant to this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and statements of the City and regardless of delivery of and payment for the Bonds.
9. Effective. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the City and shall be valid and enforceable as of the time of such acceptance. This Purchase Agreement may be signed in counterparts by each party.
10. No Prior Agreements. This Purchase Agreement supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bonds by the City and represents the entire agreement of the parties as to the subject matter herein.
11. Governing Law. This Purchase Agreement shall be governed by the laws of the State of California.
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16 Signature Page of Bond Purchase Agreement relating to City of Laguna Beach
Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) Limited Obligation Improvement Bonds
12. Counterparts. This Purchase Agreement may be executed simultaneously in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument.
Very truly yours,
OPPENHEIMER & CO. INC.
By: __________________________________
Authorized Officer
ACCEPTED:
CITY OF LAGUNA BEACH
By: __________________________________
Authorized Officer
Time of Execution: _____________ p.m.
California time
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A-1
APPENDIX A
MATURITY SCHEDULE
$__________
CITY OF LAGUNA BEACH
UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2021-3
(FAIRVIEW/LA BREA)
LIMITED OBLIGATION IMPROVEMENT BONDS
Maturity
(September 2)
Principal
Amount
Interest
Rate Yield Price
10% Test
Satisfied*
10% Test
Not
Satisfied
Subject to
Hold-TheOfferingPrice Rule
2027
2028
2029
2030
2031
2032
2033
2034
2035
20__
(T)
20__
(T)
20__
(T)
_________________
(T) Term Bond.
(C) Priced to optional call at [par] on September 2, 20__. * At the time of execution of this Purchase Agreement and assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement.
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B-1
APPENDIX B
FORM OF ISSUE PRICE CERTIFICATE
$__________
CITY OF LAGUNA BEACH
UNDERGROUND UTILITY ASSESSMENT DISTRICT NO. 2021-3
(FAIRVIEW/LA BREA)
LIMITED OBLIGATION IMPROVEMENT BONDS
The undersigned, on behalf of Oppenheimer & Co. Inc. (“Oppenheimer”) hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”).
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.
2. Initial Offering Price of the Hold-the-Offering-Price Maturities. (a) Oppenheimer offered the Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B.
(b) As set forth in the Bond Purchase Agreement, dated [BPA Date], by and between Oppenheimer and the Issuer, Oppenheimer has agreed in writing that, (i) for each Maturity of the Hold-the-Offering-Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail distribution agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold-theOffering-Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period.
3. Defined Terms.
(a) Issuer means the City of Laguna Beach.
(b) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(c) Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “Hold-the-Offering-Price Maturities.” (d) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the 171
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B-2
Sale Date, or (ii) the date on which Oppenheimer has sold at least 10% of such Hold-the-OfferingPrice Maturity to the Public at prices that are no higher than the Initial Offering Price for such Holdthe-Offering-Price Maturity. (e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.
The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50% common ownership, directly or indirectly. (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is [BPA Date]. (h) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the interpretation by Oppenheimer of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the attached Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Bond Counsel, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. Except as expressly set forth above, the certifications set forth herein may not be relied upon or used by any third party or for any other purpose.
Dated: [Closing Date] OPPENHEIMER & CO. INC., as underwriter By:
Authorized Signatory
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B-3
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES AND INITIAL OFFERING
PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES
[TO BE ATTACHED AT CLOSING]
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SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
[TO BE ATTACHED AT CLOSING]
174
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C-1
APPENDIX C
FORM OF OPINION OF DISCLOSURE COUNSEL
[Closing Date]
City of Laguna Beach
Laguna Beach, California
Oppenheimer & Co. Inc.
San Francisco, California
Re: $__________ City of Laguna Beach Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) Limited Obligation Improvement Bonds Ladies and Gentlemen:
We have acted as Disclosure Counsel to the City of Laguna Beach, California (the “City”) in connection with the issuance by the City of the above-referenced bonds (the “Bonds”). The City has issued the Bonds pursuant to the provisions of the Improvement Bond Act of 1915 and a Fiscal Agent Agreement dated as of May 1, 2026, by and between the City and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent.
We have examined originals or copies certified or otherwise identified to our satisfaction of:
(i) the Preliminary Official Statement dated [POS Date], relating to the Bonds (the “Preliminary Official Statement”); (ii) the Official Statement, dated [BPA Date], relating to the Bonds (the “Official Statement”); and (iii) such other documents, opinions, certificates, instructions and records as we have considered necessary or appropriate as a basis for this letter.
We have assumed, but not independently verified, that the signatures on all documents, letters, opinions and certificates that we have examined are genuine, that all documents submitted to us are authentic and were duly and properly executed by the parties thereto and that all representations made in the documents that we have reviewed are true and accurate.
We express no opinion regarding any tax consequences with respect to the Bonds. No opinion is expressed herein with respect to the compliance with, or applicability of, any “blue sky” laws of any state as they relate to the offer or sale of the Bonds.
We are not passing upon and have not undertaken to determine independently or to verify the accuracy or completeness of the statements contained in the Preliminary Official Statement or the Official Statement and are, therefore, unable to make any representation to you in that regard. Based on our participation in conferences prior to the date of the Official Statement with representatives of the City, Best Best & Krieger LLP, bond counsel to the City, Fieldman, Rolapp & Associates, Inc., municipal advisor to the City, the City Attorney’s Office, DTA Public Finance, Inc., Oppenheimer & Co. Inc. (the “Underwriter”), and others, during which the content of the Preliminary Official Statement and the Official Statement and related matters were discussed, our reliance on the oral and written statements of the City and others, our review of and reliance upon the documents, certificates, 175
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instructions and records and the opinions of counsel described above and our understanding of applicable law, and subject to the limitations on our role as Disclosure Counsel, we advise you as a matter of fact but not opinion that no information has come to the attention of the attorneys in the firm representing the City as Disclosure Counsel on this matter that caused us to believe that: (a) the Preliminary Official Statement (excluding therefrom the following, as to which we express no view:
financial, demographic, statistical, economic, engineering or demographic data; forecasts, numbers, charts, tables or graphs; forecasts, projections, estimates, assumptions and expressions of opinions; information about feasibility, valuation, appraisals, absorption, real estate, archaeological or environmental matters; information relating to The Depository Trust Company (“DTC”) and its book-entry only system; information under the captions “TAX MATTERS” and “UNDERWRITING”; and the Appendices to the Preliminary Official Statement) as of its date or as of the date of the Official Statement, based on the documents, drafts and facts in existence and received as of those dates, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except for such information as is permitted to be excluded from the Preliminary Official Statement pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (“Rule 15c2-12”), including but not limited to information as to pricing, yields, interest rates, maturities, amortization, redemption provisions, ratings, debt service requirements, purchaser’s discount and CUSIP numbers; or (b) the Official Statement (excluding therefrom the following, as to which we express no view: financial, demographic, statistical, economic, engineering or demographic data; forecasts, numbers, charts, tables or graphs; projections, estimates assumptions and expressions of opinions; information about feasibility, valuation, appraisals, absorption, real estate, archaeological or environmental matters; information relating to DTC and its book-entry only system; information under the captions “TAX MATTERS” and “UNDERWRITING”; CUSIP numbers; and the Appendices to the Official Statement) as of its date contained, or as of the date hereof contains, any untrue statement of a material fact, or as of its date omitted, or as of the date hereof omits, to state a material fact necessary to make the statements made therein, in the light of the circumstances under which they were made, not misleading. However, in providing advice and assistance as Disclosure Counsel, we performed no independent diligence using the MSRB’s Electronic Municipal Market Access website (or otherwise) to determine, and we express no view regarding, the compliance of the City, or any of its related entities, with any obligation to file annual reports or provide notice of events, each as described in Rule 15c2-12. Finally, we advise you that, other than reviewing the various certificates and opinions described above, we have not taken any steps since the date of the Official Statement to verify the accuracy of the statements contained in the Preliminary Official Statement or the Official Statement. No responsibility is undertaken or opinion rendered with respect to any other disclosure document, materials or activity, or as to any information from another document or source referred to by, or incorporated by reference in, the Preliminary Official Statement or the Official Statement.
By acceptance of this letter you acknowledge that the preceding paragraph is neither a legal opinion nor a guarantee regarding the Preliminary Official Statement or the Official Statement; rather it is a statement of negative assurance regarding factual information that did not come to the attention of the attorneys in our firm working on this matter during the limited activities that we performed as Disclosure Counsel. Our services did not include financial or other non-legal advice.
By acceptance of this letter, the Underwriter recognizes and acknowledges that: (i) the negative assurance contained herein is based on certain limited activities performed by specific attorneys in our firm in our role as Disclosure Counsel to the City; (ii) the scope of the activities performed by such attorneys in our role as Disclosure Counsel and for purposes of delivering such 176
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negative assurance was inherently limited and does not purport to encompass all activities necessary for compliance by the Underwriter with applicable state and federal securities laws; and (iii) the activities performed by such attorneys in our role as Disclosure Counsel rely in part by representations, warranties, certifications and opinions of other parties to the transaction, including representations, warranties and certifications made by the City.
Further, in accepting this letter the City recognizes and acknowledges that: (i) the scope of those activities performed by us was inherently limited and does not encompass all activities that the City may be responsible to undertake in preparing the Preliminary Official Statement and the Official Statement; (ii) those activities performed by us relied substantially on representations, warranties, certifications and opinions made by representatives of the City and others, and are otherwise subject to the matters set forth in this letter; (iii) while such statements of negative assurance are customarily given to underwriters of municipal bonds to assist them in discharging their responsibilities under federal securities laws, the responsibilities of the City under those laws may differ from those of underwriters in material respects, and such statements may not serve the same purpose or provide the same utility to the City as it would to the Underwriter; and (iv) this letter is not intended to be relied upon by the City or its representatives as a basis for making the representations made by the City in any documents executed by them in connection with the sale and issuance of the Bonds.
This letter is furnished by us as Disclosure Counsel to the City. No attorney-client relationship has existed or exists between our firm and the Underwriter in connection with the Bonds or by virtue of this letter. We note that the Underwriter is represented by separate counsel retained by them in connection with the transactions described in the Preliminary Official Statement and the Official Statement. This letter is delivered to you solely for your benefit and is not to be used, circulated, quoted or otherwise referred to or relied upon for any other purpose without our prior written consent. This letter is not intended to and may not be relied upon by owners of the Bonds, the owners of any beneficial interest therein, or any other party to which it is not addressed.
Our engagement with respect to the Bonds terminates as of the date hereof, and we have not undertaken any duty, and expressly disclaim any responsibility, to advise you as to events occurring after the date hereof with respect to the Bonds or other matters discussed herein or in the Official Statement.
Respectfully submitted,
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SOURCES AND USES OF FUNDS
City of Laguna Beach
UAD No. 2023-1 (Fairview-La Brea) Limited Obligation Bonds, Series 2026 25bps of Market Buffer
Dated Date 05/07/2026
Delivery Date 05/07/2026
Sources:
Bond Proceeds:
Par Amount 3,330,000.00
Net Premium 40,591.95
3,370,591.95
Other Sources of Funds:
Contribution from City 474,580.00
Contribution for General Benefit 474,580.00
Property Owner Prepayment 738,997.18
1,688,157.18
5,058,749.13
Uses:
Project Fund Deposits:
Construction Costs 4,359,669.36
Project Incidental Expenses 213,055.00
4,572,724.36
Other Fund Deposits:
Cash Funded Reserve 199,800.00
Capitalized Interest Fund 53,187.50
252,987.50
Delivery Date Expenses:
Cost of Issuance 185,000.00
Underwriter's Discount 44,122.50
229,122.50
Other Uses of Funds:
Additional Proceeds 3,914.77
5,058,749.13
Notes:
-Reserve Fund Sized on 6% of Par Amount
-7-Year Call at 103%, Declines to Par in Year 10
-Capitalized Interest Covers First Interest Pmt
-1.325% Underwriter's Discount
Attachment 6
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COST OF ISSUANCE
City of Laguna Beach
UAD No. 2023-1 (Fairview-La Brea) Limited Obligation Bonds, Series 2026 25bps of Market Buffer
Cost of Issuance $/1000 Amount
City Staff/Administrative 10.51051 35,000.00
Bond Counsel 10.51051 35,000.00
Disclosure Counsel 11.26126 37,500.00
Municipal Advisor 11.86186 39,500.00
Assessment District Admin 3.00300 10,000.00
Fiscal Agent 0.90090 3,000.00
Fiscal Agent's Counsel 1.80180 6,000.00
Printer 0.75075 2,500.00
CalMuni Report 0.29880 995.00
Contingency 4.65616 15,505.00
55.55556 185,000.00
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BOND SUMMARY STATISTICS
City of Laguna Beach
UAD No. 2023-1 (Fairview-La Brea) Limited Obligation Bonds, Series 2026 25bps of Market Buffer
Dated Date 05/07/2026
Delivery Date 05/07/2026
First Coupon 09/02/2026
Last Maturity 09/02/2051
Arbitrage Yield 4.879054%
True Interest Cost (TIC) 5.011045%
Net Interest Cost (NIC) 5.006720%
All-In TIC 5.578193%
Average Coupon 5.000000%
Average Life (years) 15.777
Weighted Average Maturity (years) 15.555
Duration of Issue (years) 10.493
Par Amount 3,330,000.00
Bond Proceeds 3,370,591.95
Total Interest 2,626,937.50
Net Interest 2,630,468.05
Total Debt Service 5,956,937.50
Maximum Annual Debt Service 238,000.00
Average Annual Debt Service 235,271.26
Underwriter's Fees (per $1000)
Average Takedown
Other Fee 13.250000
Total Underwriter's Discount 13.250000
Bid Price 99.893977
Par Average Average
Bond Component Value Price Coupon Life
Serial Bonds 885,000.00 105.833 5.000% 6.240
2041 Term Bond 625,000.00 103.583 5.000% 13.399
2046 Term Bond 795,000.00 99.236 5.000% 18.414
2050 Term Bond 1,025,000.00 97.332 5.000% 23.417
3,330,000.00 15.777
All-In Arbitrage
TIC TIC Yield
Par Value 3,330,000.00 3,330,000.00 3,330,000.00
+ Accrued Interest
+ Premium (Discount) 40,591.95 40,591.95 40,591.95
- Underwriter's Discount -44,122.50 -44,122.50
- Cost of Issuance Expense -185,000.00
- Other Amounts
Target Value 3,326,469.45 3,141,469.45 3,370,591.95
Target Date 05/07/2026 05/07/2026 05/07/2026
Yield 5.011045% 5.578193% 4.879054%
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BOND DEBT SERVICE
City of Laguna Beach
UAD No. 2023-1 (Fairview-La Brea) Limited Obligation Bonds, Series 2026 25bps of Market Buffer
Period
Ending Principal Coupon Interest Debt Service
09/02/2026 53,187.50 53,187.50
09/02/2027 70,000 5.000% 166,500.00 236,500.00
09/02/2028 75,000 5.000% 163,000.00 238,000.00
09/02/2029 75,000 5.000% 159,250.00 234,250.00
09/02/2030 80,000 5.000% 155,500.00 235,500.00
09/02/2031 85,000 5.000% 151,500.00 236,500.00
09/02/2032 90,000 5.000% 147,250.00 237,250.00
09/02/2033 95,000 5.000% 142,750.00 237,750.00
09/02/2034 100,000 5.000% 138,000.00 238,000.00
09/02/2035 105,000 5.000% 133,000.00 238,000.00
09/02/2036 110,000 5.000% 127,750.00 237,750.00
09/02/2037 115,000 5.000% 122,250.00 237,250.00
09/02/2038 120,000 5.000% 116,500.00 236,500.00
09/02/2039 125,000 5.000% 110,500.00 235,500.00
09/02/2040 130,000 5.000% 104,250.00 234,250.00
09/02/2041 135,000 5.000% 97,750.00 232,750.00
09/02/2042 145,000 5.000% 91,000.00 236,000.00
09/02/2043 150,000 5.000% 83,750.00 233,750.00
09/02/2044 160,000 5.000% 76,250.00 236,250.00
09/02/2045 165,000 5.000% 68,250.00 233,250.00
09/02/2046 175,000 5.000% 60,000.00 235,000.00
09/02/2047 185,000 5.000% 51,250.00 236,250.00
09/02/2048 195,000 5.000% 42,000.00 237,000.00
09/02/2049 205,000 5.000% 32,250.00 237,250.00
09/02/2050 215,000 5.000% 22,000.00 237,000.00
09/02/2051 225,000 5.000% 11,250.00 236,250.00
3,330,000 2,626,937.50 5,956,937.50
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BOND DEBT SERVICE
City of Laguna Beach
UAD No. 2023-1 (Fairview-La Brea) Limited Obligation Bonds, Series 2026 25bps of Market Buffer
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service 09/02/2026 53,187.50 53,187.50 53,187.50
03/02/2027 83,250.00 83,250.00
09/02/2027 70,000 5.000% 83,250.00 153,250.00 236,500.00 03/02/2028 81,500.00 81,500.00
09/02/2028 75,000 5.000% 81,500.00 156,500.00 238,000.00 03/02/2029 79,625.00 79,625.00
09/02/2029 75,000 5.000% 79,625.00 154,625.00 234,250.00 03/02/2030 77,750.00 77,750.00
09/02/2030 80,000 5.000% 77,750.00 157,750.00 235,500.00 03/02/2031 75,750.00 75,750.00
09/02/2031 85,000 5.000% 75,750.00 160,750.00 236,500.00 03/02/2032 73,625.00 73,625.00
09/02/2032 90,000 5.000% 73,625.00 163,625.00 237,250.00 03/02/2033 71,375.00 71,375.00
09/02/2033 95,000 5.000% 71,375.00 166,375.00 237,750.00 03/02/2034 69,000.00 69,000.00
09/02/2034 100,000 5.000% 69,000.00 169,000.00 238,000.00 03/02/2035 66,500.00 66,500.00
09/02/2035 105,000 5.000% 66,500.00 171,500.00 238,000.00 03/02/2036 63,875.00 63,875.00
09/02/2036 110,000 5.000% 63,875.00 173,875.00 237,750.00 03/02/2037 61,125.00 61,125.00
09/02/2037 115,000 5.000% 61,125.00 176,125.00 237,250.00 03/02/2038 58,250.00 58,250.00
09/02/2038 120,000 5.000% 58,250.00 178,250.00 236,500.00 03/02/2039 55,250.00 55,250.00
09/02/2039 125,000 5.000% 55,250.00 180,250.00 235,500.00 03/02/2040 52,125.00 52,125.00
09/02/2040 130,000 5.000% 52,125.00 182,125.00 234,250.00 03/02/2041 48,875.00 48,875.00
09/02/2041 135,000 5.000% 48,875.00 183,875.00 232,750.00 03/02/2042 45,500.00 45,500.00
09/02/2042 145,000 5.000% 45,500.00 190,500.00 236,000.00 03/02/2043 41,875.00 41,875.00
09/02/2043 150,000 5.000% 41,875.00 191,875.00 233,750.00 03/02/2044 38,125.00 38,125.00
09/02/2044 160,000 5.000% 38,125.00 198,125.00 236,250.00 03/02/2045 34,125.00 34,125.00
09/02/2045 165,000 5.000% 34,125.00 199,125.00 233,250.00 03/02/2046 30,000.00 30,000.00
09/02/2046 175,000 5.000% 30,000.00 205,000.00 235,000.00 03/02/2047 25,625.00 25,625.00
09/02/2047 185,000 5.000% 25,625.00 210,625.00 236,250.00 03/02/2048 21,000.00 21,000.00
09/02/2048 195,000 5.000% 21,000.00 216,000.00 237,000.00 03/02/2049 16,125.00 16,125.00
09/02/2049 205,000 5.000% 16,125.00 221,125.00 237,250.00 03/02/2050 11,000.00 11,000.00
09/02/2050 215,000 5.000% 11,000.00 226,000.00 237,000.00 03/02/2051 5,625.00 5,625.00
09/02/2051 225,000 5.000% 5,625.00 230,625.00 236,250.00 3,330,000 2,626,937.50 5,956,937.50 5,956,937.50
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NET DEBT SERVICE
City of Laguna Beach
UAD No. 2023-1 (Fairview-La Brea) Limited Obligation Bonds, Series 2026 25bps of Market Buffer
Total Cash Funded Capitalized Net Annual
Date Principal Coupon Interest Debt Service Reserve Interest Fund Debt Service Net D/S 09/02/2026 53,187.50 53,187.50 53,187.50
03/02/2027 83,250.00 83,250.00 83,250
09/02/2027 70,000 5.000% 83,250.00 153,250.00 153,250 236,500 03/02/2028 81,500.00 81,500.00 81,500
09/02/2028 75,000 5.000% 81,500.00 156,500.00 156,500 238,000 03/02/2029 79,625.00 79,625.00 79,625
09/02/2029 75,000 5.000% 79,625.00 154,625.00 154,625 234,250 03/02/2030 77,750.00 77,750.00 77,750
09/02/2030 80,000 5.000% 77,750.00 157,750.00 157,750 235,500 03/02/2031 75,750.00 75,750.00 75,750
09/02/2031 85,000 5.000% 75,750.00 160,750.00 160,750 236,500 03/02/2032 73,625.00 73,625.00 73,625
09/02/2032 90,000 5.000% 73,625.00 163,625.00 163,625 237,250 03/02/2033 71,375.00 71,375.00 71,375
09/02/2033 95,000 5.000% 71,375.00 166,375.00 166,375 237,750 03/02/2034 69,000.00 69,000.00 69,000
09/02/2034 100,000 5.000% 69,000.00 169,000.00 169,000 238,000 03/02/2035 66,500.00 66,500.00 66,500
09/02/2035 105,000 5.000% 66,500.00 171,500.00 171,500 238,000 03/02/2036 63,875.00 63,875.00 63,875
09/02/2036 110,000 5.000% 63,875.00 173,875.00 173,875 237,750 03/02/2037 61,125.00 61,125.00 61,125
09/02/2037 115,000 5.000% 61,125.00 176,125.00 176,125 237,250 03/02/2038 58,250.00 58,250.00 58,250
09/02/2038 120,000 5.000% 58,250.00 178,250.00 178,250 236,500 03/02/2039 55,250.00 55,250.00 55,250
09/02/2039 125,000 5.000% 55,250.00 180,250.00 180,250 235,500 03/02/2040 52,125.00 52,125.00 52,125
09/02/2040 130,000 5.000% 52,125.00 182,125.00 182,125 234,250 03/02/2041 48,875.00 48,875.00 48,875
09/02/2041 135,000 5.000% 48,875.00 183,875.00 183,875 232,750 03/02/2042 45,500.00 45,500.00 45,500
09/02/2042 145,000 5.000% 45,500.00 190,500.00 190,500 236,000 03/02/2043 41,875.00 41,875.00 41,875
09/02/2043 150,000 5.000% 41,875.00 191,875.00 191,875 233,750 03/02/2044 38,125.00 38,125.00 38,125
09/02/2044 160,000 5.000% 38,125.00 198,125.00 198,125 236,250 03/02/2045 34,125.00 34,125.00 34,125
09/02/2045 165,000 5.000% 34,125.00 199,125.00 199,125 233,250 03/02/2046 30,000.00 30,000.00 30,000
09/02/2046 175,000 5.000% 30,000.00 205,000.00 205,000 235,000 03/02/2047 25,625.00 25,625.00 25,625
09/02/2047 185,000 5.000% 25,625.00 210,625.00 210,625 236,250 03/02/2048 21,000.00 21,000.00 21,000
09/02/2048 195,000 5.000% 21,000.00 216,000.00 216,000 237,000 03/02/2049 16,125.00 16,125.00 16,125
09/02/2049 205,000 5.000% 16,125.00 221,125.00 221,125 237,250 03/02/2050 11,000.00 11,000.00 11,000
09/02/2050 215,000 5.000% 11,000.00 226,000.00 226,000 237,000 03/02/2051 5,625.00 5,625.00 5,625
09/02/2051 225,000 5.000% 5,625.00 230,625.00 199,800 30,825 36,450 3,330,000 2,626,937.50 5,956,937.50 199,800 53,187.50 5,703,950 5,703,950 183
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BOND PRICING
City of Laguna Beach
UAD No. 2023-1 (Fairview-La Brea) Limited Obligation Bonds, Series 2026 25bps of Market Buffer
Maturity Yield to Call Call Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Serial Bonds:
09/02/2027 70,000 5.000% 3.000% 102.564 1,794.80
09/02/2028 75,000 5.000% 3.080% 104.261 3,195.75
09/02/2029 75,000 5.000% 3.250% 105.460 4,095.00
09/02/2030 80,000 5.000% 3.430% 106.248 4,998.40
09/02/2031 85,000 5.000% 3.610% 106.667 5,666.95
09/02/2032 90,000 5.000% 3.830% 106.506 5,855.40
09/02/2033 95,000 5.000% 3.930% 106.743 6,405.85
09/02/2034 100,000 5.000% 4.060% 106.574 6,574.00
09/02/2035 105,000 5.000% 4.180% 106.269 6,582.45
09/02/2036 110,000 5.000% 4.290% 105.864 6,450.40
885,000 51,619.00
2041 Term Bond:
09/02/2037 115,000 5.000% 4.560% 103.583 C 4.669% 09/02/2036 100.000 4,120.45 09/02/2038 120,000 5.000% 4.560% 103.583 C 4.669% 09/02/2036 100.000 4,299.60 09/02/2039 125,000 5.000% 4.560% 103.583 C 4.669% 09/02/2036 100.000 4,478.75 09/02/2040 130,000 5.000% 4.560% 103.583 C 4.669% 09/02/2036 100.000 4,657.90 09/02/2041 135,000 5.000% 4.560% 103.583 C 4.669% 09/02/2036 100.000 4,837.05 625,000 22,393.75
2046 Term Bond:
09/02/2042 145,000 5.000% 5.060% 99.236 -1,107.80
09/02/2043 150,000 5.000% 5.060% 99.236 -1,146.00
09/02/2044 160,000 5.000% 5.060% 99.236 -1,222.40
09/02/2045 165,000 5.000% 5.060% 99.236 -1,260.60
09/02/2046 175,000 5.000% 5.060% 99.236 -1,337.00
795,000 -6,073.80
2050 Term Bond:
09/02/2047 185,000 5.000% 5.190% 97.332 -4,935.80
09/02/2048 195,000 5.000% 5.190% 97.332 -5,202.60
09/02/2049 205,000 5.000% 5.190% 97.332 -5,469.40
09/02/2050 215,000 5.000% 5.190% 97.332 -5,736.20
09/02/2051 225,000 5.000% 5.190% 97.332 -6,003.00
1,025,000 -27,347.00
3,330,000 40,591.95
Dated Date 05/07/2026
Delivery Date 05/07/2026
First Coupon 09/02/2026
Par Amount 3,330,000.00
Premium 40,591.95
Production 3,370,591.95 101.218977%
Underwriter's Discount -44,122.50 -1.325000%
Purchase Price 3,326,469.45 99.893977%
Accrued Interest
Net Proceeds 3,326,469.45
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Total Estimated Par Amount $3,330,000
Total Estimated Net Premium or (Net Original Discount) $40,592 Total Estimated Bond Proceeds $3,370,592
A. True Interest Cost (TIC) of the Bonds 5.01% 1
B. Sum of all fees and charges paid to 3rd parties $233,037 Cost of Issuance 185,000 1
Underwriter's Discount 44,123 1
Additional Proceeds 3,915 1
C. Bond Proceeds Net of Reserves, Capitalized Interest and 3rd Party Fees and Charges $2,884,567
Bond proceeds 3,370,592 1
Less Debt Service Reserve Fund (199,800) 1
Less Sum of all fees and charges paid to 3rd parties (233,037) 1 Less Capitalized Interest (53,188) 1
D. Total Payment Amount $5,903,750
Total Principal and Interest to Maturity** 5,903,750 1
Sources:
1 Preliminary Cash Flows from Oppenheimer as of 3/16/26 City of Laguna Beach
Underground Utility Assessment District No. 2021-3 (Fairview/La Brea) Limited Obligation Improvement Bonds
SB 450 Summary / Government Code 5852.1*
*Summary reflects good faith estimates as of 3/16/26 and all costs associated with the financing; subject to change based on interest rates, market conditions, and other factors. Estimates do not impose any limitations or constraints upon authorized parameters, which differ from the estimates above ** Less Capitalized Interest, if any
Attachment 7
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STAFF REPORT
Meeting Date:
April 14, 2026
BUSINESS
18 SUBJECT: PROPOSED UNDERGROUND UTILITY ASSESSMENT DISTRICT 2025-3 (BLUEBIRD CANYON DRIVE)
RECOMMENDATION: It is recommended that the City Council:
1. Direct staff to establish a fund for proposed Underground Utility Assessment District 2025-3, as shown on the attached Boundary Map;
2. Appropriate $310,000 from the Wildfire Mitigation and Fire Safety Fund for assessment engineering, bid document preparation, and utility designs for the proposed assessment district;
3. Direct staff to request that utility companies proceed with design for the proposed assessment district and authorize the City Manager to enter into necessary utility company agreements and make advance payments to the utility companies for their designs;
4. Direct staff to solicit proposals for assessment engineering, bid document preparation, and street lighting design for the proposed assessment district; and
5. Determine that the action is exempt from the California Environmental Quality Act pursuant to CEQA guidelines section 15301(b), 15302(c) & (d), and 15303(d).
SUMMARY OF THE MATTER
This report recommends that the City Council initiate the formation process and fund preliminary design and engineering for Proposed Underground Utility Assessment District 2025-3 (Bluebird Canyon Drive), which includes 158 parcels as shown in Attachment 1. The City has received petitions from 84 property owners, meeting the required 50% threshold under the revised 2025 Assessment District Formation Policy.
The estimated upfront cost of $310,000 will be advanced from the Wildfire Mitigation and Fire Safety Fund and reimbursed if the district is formed by a weighted majority vote. The proposed action is exempt from CEQA under Guidelines Sections 15301(b), 15302(c) and (d), and 15303(d).
DISCUSSION
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PROPOSED UNDERGROUND UTILITY ASSESSMENT DISTRICT 2025-3 (BLUEBIRD
CANYON DRIVE)
April 14, 2026
In 2025, the City Council adopted the revised Underground Utility Assessment District Formation Policy.
Major changes to the policy included lowering the threshold of signed petitions by at least 60% of property owners with proposed district boundary to at least 50% and eliminating the requirement of a $500 deposit from each petitioner to be used toward startup costs.
The Bluebird Canyon Drive assessment district consists of 158 parcels. The proponents submitted 84 signatures, representing approximately 53% percent of the affected property owners within the project boundary.
Easement Requirements
This project will require the acquisition of easements over private property. Many parcels in the proposed district reside along privately owned roads such as Crabbe Way, Didrikson Way, Keller Way, Saling Way, and Jefferson Way. These streets are lettered lots in Tract Number 989, which was never accepted by the City for public purposes and remains privately owned. The number and locations of easements needed cannot be determined until final designs have been completed. The necessary costs of easement acquisition would be included in the bonds issued for the assessment district.
If required, easements cannot be acquired through informal negotiations; an eminent domain process will be considered to acquire the easements. Initial efforts to form this district began in 2019; however, progress was halted during the COVID-19 pandemic. Property owners re-engaged with City staff in early 2025 to continue the formation process. Over the past year, City staff have met with several proponents to provide a high-level overview of the district formation, easement acquisition, and eminent domain process. Staff will return to the City Council at a later date with an update on the easement acquisition process and estimated costs should the eminent domain process be required to construct the underground utilities within the private streets.
Public Involvement and Notice
Property owners in the proposed assessment district area have been made aware of the project through meetings with City staff, emailed notices, and personal visits from the project proponents and staff. The team of proponents have canvased the neighborhood to explain the project and associated benefits; however, to ensure all property owners were responsibly notified of the project and the April 14, 2026, City Council meeting, all of the property owners within the proposed assessment district were notified by mail on March 27, 2026.
Street Lighting Design
Streets within the district boundary do not have existing street lights except for two overhead-fed street lights along Madison Place. These lights will be replaced in-kind and connected to the new underground utility system. Staff conducted initial outreach to project proponents who are generally not in favor of adding new street lights within the neighborhood. Additional outreach will take place to confirm if no additional street lights are needed or if there is a desire by property owners for street lights at select locations within the district. Costs associated with the design and construction of the street light system would be included in bonds issued for the assessment district.
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PROPOSED UNDERGROUND UTILITY ASSESSMENT DISTRICT 2025-3 (BLUEBIRD
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FINANCIAL ANALYSIS
In accordance with the undergrounding policy, the City could fund upfront costs for underground utility assessment districts with a cash advance from the Wildfire Mitigation and Fire Safety Fund. If the appropriation is approved, the Wildfire Mitigation and Fire Safety Fund will have approximately $1.3 million remaining to fund future projects. Anticipated upfront costs are listed in the table below:
Assessment Engineering $75,000
Bid Document Preparation $10,000
SCE Design Fee $130,000
Cox Design Fee $15,000
Frontier Design Fee $15,000
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PROPOSED UNDERGROUND UTILITY ASSESSMENT DISTRICT 2025-3 (BLUEBIRD
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Street Lighting Design $40,000
Entitlements $25,000
Total Expense $310,000
Once the design and assessment engineering has been completed and assessment amounts are known, property owners will then vote on the proposed district. Votes from each property owner within the district will be weighted based on the proposed assessment amount for each property. For example, a vote from a property with a high assessment will be weighted more than a vote from a property with a lower assessment amount. If a weighted majority approves the creation of the assessment district, then the City will be reimbursed its upfront costs from the newly formed district. If the formation of the district fails, then the City will not be refunded for money spent on design and assessment engineering.
In addition to the costs described above, utility undergrounding projects also provide a “general benefit” to the surrounding neighborhoods or the public at large and are paid by the City. The amount of the general benefit would be determined during the assessment engineering phase and could be approximately 10 percent of the total project cost. The general benefit contribution would be due at the time of formation.
ENVIRONMENTAL ANALYSIS
Actions related to the formation of an undergrounding district are exempt from CEQA pursuant to State CEQA Guidelines, section 15302 (Replacement or Reconstruction) as it consists of the possible formation of an undergrounding utility assessment district to fund the replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not limited to: (1) conversion of overhead electric utility distribution system facilities to underground including connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding; and (2) replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Here, the formation of an undergrounding district involves the possible formation of an undergrounding utility assessment district to fund the reconstruction of an electric utility system by removing above ground utilities and reconstructing them below ground. The new undergrounding system will be located on the same site and will have substantially the same purpose and capacity (i.e., providing electricity to structures). The undergrounding district, if approved, involves the removal of approximately 58 utility poles and undergrounding of approximately 7,300 linear feet of overhead wires and therefore constitutes conversion of overhead electric utility distribution system facilities to underground. Further the formation of an undergrounding district involves the following aboveground equipment to be installed to accommodate the undergrounding: riser poles, vent standpipes, guy anchors, utility cabinets, pedestals, and street lights.
The formation of an undergrounding district is also categorically exempt from CEQA under the following State CEQA Guidelines, Sections 15301(b) and 15303(d). Section 15301(b) exempts projects that pertain to existing facilities of both investor and publicly owned utilities used to provide electric power, natural gas, sewerage, or other public utility services. Here, the formation of an undergrounding district is exempt under Section 15301(b) because it consists of existing facilities providing electric power with no expansion of use. Section 15303(d) exempts projects that pertain to construction and location of limited new, small 4 of 342
PROPOSED UNDERGROUND UTILITY ASSESSMENT DISTRICT 2025-3 (BLUEBIRD
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facilities or structures, including water main, sewage, electrical, gas, and other utility extensions, including street improvements, of reasonable length to serve such construction. Here, the formation of an undergrounding district is exempt under Section 15303(d) because it consists of new construction of small utility facilities or structures.
In the alternative, the formation of an undergrounding district consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines, section 15378(b)(4).)
ATTACHMENTS
1. Boundary Map (Pg. 5)
Submitted By:
.Mark McAvoy Approved: .David A Kiff
Mark McAvoy, Director of Public
Works & Utilities
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Pierre Sawaya, Capital Program Manager
Alondra Aguirre, Administrative Assistant
Thomas Perez, City Engineer
Michelle Bannigan, Finance Director
Patrick Donegan, Assistant City Attorney
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SAILING WY
KELLER WY
WYKOFF WY
DYER PL
EASTMAN WY
DIDRIKSON WY
MORNINGSIDE DR
CRESS ST
RANCHO LAGUNA RD BLUEBIRD CANYON DR
FLAMINGO RD MADISON PL STARLIT DR
CRABBE WY
MORNINGSIDE DR BLUEBIRD CANYON DR
REGATTA RD
BLUEBIRD
DR CANYON
BLUEBIRD CANYON DR
BLUEBIRD CANYON DR CITY OF LAGUNA BEACH BLUEBIRD DISTRICT PREPARED BY: PREPARED FOR: N.T.S. LEGEND PARCEL PARCEL (NOT PART OF DISTRICT) BOUNDARY AREA (TO BE VERIFIED)POWER LINE TO BE REMOVED (TO BE VERIFIED) PARCEL COUNT: 158 POWER POLE COUNT: 58 POWERLINE LINEAR FOOTAGE: 7,238 LF APPROXIMATE QUANTITIES 03/20/2026 POWER POLE TO BE REMOVED (TO BE VERIFIED) Attachment 1
5 STAFF REPORT
Meeting Date:
April 14, 2026
BUSINESS
19 SUBJECT: REPORT ON AMBULANCE PROGRAM PERFORMANCE, AMBULANCE RATE
INCREASE, AND AMBULANCE PURCHASE
RECOMMENDATION: It is recommended that the City Council:
1. Receive and file the Ambulance Program report;
2. Adopt the attached resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LAGUNA BEACH, CALIFORNIA, ESTABLISHING THE RATES FOR THE PROVISION
OF ADVANCED LIFE SUPPORT (ALS) SERVICE AND BASIC LIFE SUPPORT (BLS)
GROUND AMBULANCE TRANSPORT SERVICE, AND PROVIDING FOR ANNUAL
ADJUSTMENTS BASED ON THE CONSUMER PRICE INDEX FOR FIVE YEARS, AND
FINDING THE SAME EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT”, increasing the City’s ambulance transport base rate fee, mileage fee, and incidental materials fee in line with Consumer Price Index increases;
3. Authorize the City Manager, or his designee, to execute a Cooperative Purchase Agreement with Professional Sales and Service, L.C., and related financing documents for the purchase of one (1) ambulance, in an amount not-to-exceed $314,988.71 over a seven-year term (with estimated annual payments of approximately $55,000), subject to annual budget appropriations;
4. Appropriate $55,000 from the available fund balance in the Vehicle Replacement Fund, for the first year payment in FY 2025-26; and
5. Determine that the action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15378(b)(4) and (5), and alternatively is categorically exempt under Section 15301 (Existing Facilities), and that none of the exceptions in Section 15300.2 apply.
SUMMARY OF THE MATTER
The Laguna Beach Fire Department operates a City-run ambulance transport program that provides Advanced Life Support (ALS) and Basic Life Support (BLS) services to the community (“Ambulance Program”). The Ambulance Program continues to deliver a high level of service, support regional emergency response efforts, and serve as a valuable recruitment and training pathway for future firefighters.
The City Council is asked to receive and file the annual Ambulance Program Report, which provides an overview of program performance, transport volume, and financial results. While the program remains operationally effective, rising costs associated with medical supplies, fuel, maintenance, and equipment have created a need to adjust ambulance service rates to better align with current expenditures.
Staff recommends adopting a resolution to increase ambulance transport rates, including base rates, mileage fees, and incidental charges, based on the Consumer Price Index (CPI), with annual adjustments over a five1 of 395
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year period. The proposed adjustments are consistent with regional trends and are expected to improve cost recovery while maintaining compliance with applicable billing regulations.
Additionally, staff recommends authorizing the purchase and financing of one (1) additional ambulance to expand the City’s fleet from three (3) to four (4) units. This will enhance service reliability, ensure adequate reserve capacity, and support increased seasonal demand during peak visitor periods. The total cost of the ambulance is approximately $314,988.71, financed over seven years with estimated annual payments of $55,000. The first year payment (FY 2025–26) will be funded through the Vehicle Replacement Fund, with subsequent payments budgeted in the General Fund, Fire Department Ambulance Program. This allows the department to purchase the vehicle now and have it in service by summer.
The ongoing cost of the financing is expected to be offset by increased ambulance service revenues resulting from the proposed rate adjustments. This action supports the City’s goal of maintaining high-quality public safety services and ensuring long-term fiscal sustainability.
DISCUSSION
Ambulance Program Report
On March 12, 2024, the City Council received a comprehensive report on the Ambulance Program, which included performance and operational data for Fiscal Year 2022–2023. The Ambulance Program continues to provide a high level of service to the community and has been successfully replicated in the cities of Fullerton, Brea, Fountain Valley, and Orange since its inception. Currently, nine of the eleven fire departments in Orange County operate an ambulance service.
Over the past three (3) years, the Laguna Beach Fire Department has transported a total of 4,990 patients to local hospitals.
2023 2024 2025 Average Total
1,664 1,680 1,646 1,662 4,990
The following summarizes the program’s performance for Fiscal Years 2023/24 through 2025/26 YTD, including participation in both the Public Provider Ground Emergency Medical Transport (PP-GEMT) program and the State’s Intergovernmental Transfer (IGT) Variable Rate Reimbursement Program (VRRP).
The PP-GEMT program provides cost-based supplemental Medi-Cal reimbursement and is included within the expenditure/revenue analysis below, while the IGT-VRRP is a separate intergovernmental transfer program that provides additional performance-based reimbursement and is summarized in the Intergovernmental Program chart below. While base operations reflect a net deficit, participation in the IGT-VRRP program generated supplemental reimbursement that more than offset costs, resulting in a positive net revenue position overall.
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Expenditure/Revenue Analysis
FY 2023/24 FY 2024/25
FY 2025/26 YTD
(As of 2/28/26)
Expenditures $1,853,307 $1,851,000 $1,238,411
Revenues $1,691,967 $1,767,450 $1,176,465
Net Total $(161,340) $(83,550) $(61,946)
Intergovernmental Program
FY 2023/24 FY 2024/25
FY 2025/26
ESTIMATE
IGT-VRPP Expenditures $143,706 $124,635
IGT-VRPP Revenues $340,488 $283,557
Net Total N/A $196,782 $158,922
Net Revenue N/A $113,232 $96,976
The Ambulance Program has demonstrated strong success in recruiting and developing talent for the fire service, with five (5) individuals hired as full-time firefighters by the Laguna Beach Fire Department since the program’s inception and an additional 24 hired as full-time firefighters by other agencies.
Ambulance Rate Increase
Current ambulance transportation rates were set by Council Resolution 21.04, effective July 1, 2022.
Emergency medical service costs—including medical supplies, fuel, vehicle maintenance, equipment, and related expenses—have increased since the program’s implementation in 2022 due to regional and national inflationary pressures. A modest adjustment based on the Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles–Long Beach–Anaheim area provides an objective and transparent method to realign rates with current operating costs. Applying a CPI-based increase of approximately 10.3% over the 2023–2025 period is projected to increase annual revenue potential by approximately $92,450.
While Laguna Beach’s ambulance rates have remained the same over the past four (4) years, the average BLS rate in Orange County has increased by almost 60%.
City 2021 BLS Rate 2026 BLS Rate
City of Laguna Beach $2,800 $2,800
City of Huntington Beach $1,336 $2,155
City of Newport Beach $1,721 $2,743
City of Orange $1,630 $2,413
City of Fullerton $1,630 $2,413
County of Orange $1,290 $2,413
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AMBULANCE PURCHASE
April 14, 2026
Ambulance Purchase
Staff recommends the purchase of one (1) additional ambulance to support front-line operations, increasing the fleet from three (3) to four (4) units and allowing one existing ambulance to be designated as a dedicated reserve.
Between Memorial Day and Labor Day, Laguna Beach experiences a significant increase in population due to tourism, beach activity, events, and traffic. To meet this seasonal demand, the City utilizes and provides staff for two 24-hour ambulances and one 12-hour ambulance daily. Under this deployment model, all existing units are fully utilized, leaving no reserve capacity. In 2025, this extra ambulance crew transported 193 patients.
An additional ambulance will allow for uninterrupted operations in the event of a mechanical breakdown, accident, or other unforeseen circumstances that may remove an ambulance from service.
Staff recommends the purchase of a 2026 Leader ambulance from Professional Sales & Service LLC through a cooperative purchasing agreement with Sourcewell (Contract No. 122123-RVG), with financing through REV Group over a seven-year term. The total cost of the fully outfitted ambulance will not exceed $315,000, financed over a seven-year period, with annual payments estimated at $55,000. This approach is consistent with the financing structure utilized for the City’s existing ambulance fleet.
The first-year payment (FY 2025–26) will be funded through the Vehicle Replacement Fund. Subsequent annual payments will be incorporated into the General Fund, Fire Department budget under the Ambulance Program. The ongoing financing costs are expected to be offset by increased ambulance service revenues resulting from the proposed rate adjustments.
Use of the Sourcewell cooperative purchasing contract is consistent with Laguna Beach Municipal Code Section 2.30.050(c), which permits purchases based on the competitive bidding processes of other public agencies and exempts such procurements from separate City bidding requirements: “Cooperative Purchasing. If a purchase is based on the bidding efforts of another public agency or purchased in conjunction with another public agency, then the purchase is exempt from bid requirements.”
FINANCIAL ANALYSIS
Rate Increase
The proposed ambulance rate adjustment is estimated to generate approximately $92,450 in additional annual reimbursement. These revenues are anticipated to be derived primarily from private insurance, as well as patient cost-sharing mechanisms such as deductibles and co-payments. Medicare and Medi-Cal reimbursement rates are established through existing regulatory frameworks and are not directly impacted by local rate adjustments. Patients without insurance will be billed in accordance with the updated rates; however, accounts are managed based on ability to pay, consistent with applicable policies and State law.
California Assembly Bill 716 further limits the collection of unpaid medical debt. 4 of 395
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The chart below summarizes the 2025 payer mix. The remaining three percent reflects patients associated with auto liability claims, workers’ compensation cases, and certain veterans’ coverage programs.
Medicare Medi-Cal Private Insurance Cash Pay
47% 17% 17% 16%
Ambulance Purchase
The total cost of the ambulance is approximately $314,988.71, financed over a seven-year term, with estimated annual payments of approximately $55,000.
The first-year payment (FY 2025–26) will be funded through the Vehicle Replacement Fund. Subsequent annual payments will be incorporated into the General Fund, Fire Department budget under the Ambulance Program, subject to City Council appropriation as part of the annual budget process.
The proposed ambulance rate adjustments are intended to improve cost recovery for the Ambulance Program, and the ongoing cost of the financing is expected to be substantially offset by increased ambulance service revenues. However, actual cost recovery will depend on transport volume, payer mix, and reimbursement rates.
The addition of one (1) ambulance will expand the City’s fleet from three (3) to four (4) units, improving service reliability and reducing the risk of service disruptions due to maintenance or peak seasonal demand.
The financing approach allows the City to acquire the vehicle without a significant upfront capital expenditure, while distributing costs over the useful life of the asset.
ENVIRONMENTAL ANALYSIS
The recommended action consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(5).) Additionally, the recommended action consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(4).) The proposed actions to receive and file the Ambulance Program report, adopt a resolution establishing ambulance service rates, and authorize the purchase and financing of one ambulance are administrative, fiscal, and acquisition activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore do not constitute a “project” under CEQA Guidelines Section 15378(b)(4) and 15378(b)(5). Alternatively, this action is categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities), which includes the operation, repair, maintenance, or minor alteration of existing public facilities involving negligible or no expansion of use. Here, the proposed actions to receive and file the Ambulance Program report, adopt a resolution establishing ambulance service rates, 5 of 395
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and authorize the purchase and financing of one ambulance is to support an existing municipal service and facilities without expansion of the use.
Further, none of the exceptions outlined in CEQA Guidelines section 15300.2 apply. The project site does not contain any environmentally sensitive areas. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. There are no unusual circumstances resulting in a significant impact on the environment. There will there be damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway. The project is not located on a hazardous waste site or any other site included on a list compiled pursuant to Government Code section 65962.5. The project will not result in significant adverse impacts to historical resources as defined by CEQA. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA.
ATTACHMENTS
1. Resolution (Pgs. 7-11)
2. Cooperative Agreement (Pgs. 12-53)
Submitted By:
. Approved: .David A Kiff
Niko King, Fire Chief Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Andrew Hill, Deputy Fire Chief Patrick Donegan, Assistant City Attorney Tammie Pickens, Senior Accountant
Kirsten Gallacher, Senior Administrative Analyst
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RESOLUTION NO. 26.XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, ESTABLISHING THE RATES
FOR THE PROVISION OF ADVANCED LIFE SUPPORT (ALS)
SERVICE AND BASIC LIFE SUPPORT (BLS) GROUND
AMBULANCE TRANSPORT SERVICE, AND PROVIDING FOR
ANNUAL ADJUSTMENTS BASED ON THE CONSUMER PRICE
INDEX FOR FIVE YEARS, AND FINDING THE SAME EXEMPT
FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the California Health and Safety Code section 1797.201 permits the City of Laguna Beach to operate an ambulance services; and
WHEREAS, the City, via City Council resolution, is permitted to charge for its ambulance service and related life support services that are included in the ambulance service; and WHEREAS, in order to ensure the long term viability of the City’s ambulance service and ensure that the City is properly accounting for its various costs in providing these services, the City’s rates for these services needs to be modified; and WHEREAS, the last time the City’s costs for ambulance and related support services were updated was December 14, 2021; and
WHEREAS, the City Council desires to increase the rates for the City’s Advanced Life Support (ALS) service and Basic Life Support (BLS) ground ambulance transport service in an amount of the combined Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles-Long Beach-Anaheim, California Area, as published by the U.S. Bureau of Labor Statistics, since the time of the last rate setting (December 14, 2021); and WHEREAS, the City Council desires to implement an annual CPI cost escalator (that is slightly different than the general Master Fee Schedule CPI escalator) for a total of five years to ensure the financial viability of the City’s ambulance services.
Attachment 1
7 7 of 395
-2- Reso. #26.XXX
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH DOES RESOLVE:
SECTION 1. The foregoing recitals are true and correct and incorporated herein by this reference.
SECTION 2. The City’s Master Fee Schedule is hereby amended to replace the current “Emergency Medical Services Charges” section found under the “FIRE DEPARTMENT FEES” list with the following, effective May 1, 2026:
“EMERGENCY MEDIAL SERVICES CHARGES
Expendable Medical Supplies (maximum per response) $110.30 Basic Life Support Ambulance Support $3,529.60
Advanced Life Support Ambulance transport $3,088.40
Oxygen (applicable when administered) $44.12
Mileage (per patient mile of fraction thereof) $22.06
* Commencing May 1, 2027, and continuing annually thereafter on May 1 of each year through May 1, 2031 (for a total of five (5) annual adjustments), the fees set forth in Section 1 shall be automatically increased by the percentage change in the CPI-U (All Items, not seasonally adjusted) for the Los Angeles-Long Beach-Anaheim, CA area, as follows: (i) the adjustment percentage shall be the 12-month percent change in the CPI-U from the reference month of February of the prior year to February of the current year (or the most recent comparable 12-month period published by the BLS prior to the adjustment date), using the official BLS series for this area (currently CUURS49ASA0 or its successor; (ii) the percentage shall be applied to each fee amount in effect immediately prior to the adjustment date; (iii) if the calculated CPI-U percent change is zero or negative, the fees shall remain unchanged for that year (no reduction); and (iv) adjusted fees shall be rounded to the nearest ten cents ($0.10) for Oxygen, Mileage, and Expendable Medical Supplies, and to the nearest whole dollar ($1.00) for BLS and ALS Ambulance Transport rates.
The Fire Chief or designated City official shall calculate the adjusted rates each year based on the latest available BLS data (available at www.bls.gov) and shall cause the updated fee schedule to be published on the City's website and otherwise made available to the public no later than April 8 8 of 395
-3- Reso. #26.XXX
15 of each year. The adjusted fees shall take effect automatically on May 1 without further action by the City Council.”
SECTION 3. In accordance with the requirements of the California Environmental Quality Act (“CEQA”), the adoption of this Resolution consists of organizational or administrative activities of the City that will not result in a direct or indirect physical change in the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines Section 15378(b)(5).) Additionally, the recommended action consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; CEQA Guidelines Section 15378(b)(4).)
The proposed actions to receive and file the Ambulance Program report, adopt a resolution establishing ambulance service rates, and authorize the purchase and financing of one ambulance have been reviewed for compliance with the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378. The actions related to receiving and filing the report and adopting ambulance service rates are administrative, and fiscal, and acquisition activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore do not constitute a “project” under CEQA Guidelines Section 15378(b)(42) and 15378(b)(5). The purchase of one (1) additional ambulance to support an existing municipal service is also not considered a project under CEQA because it involves the 9 9 of 395
-4- Reso. #26.XXX
acquisition of equipment to maintain and enhance current service levels without resulting in a physical change to the environment. Alternatively, this action is categorically exempt pursuant to CEQA Guidelines Section 15301 (Existing Facilities), which includes the operation, repair, maintenance, or minor alteration of existing public facilities involving negligible or no expansion of use. Here, the proposed actions to receive and file the Ambulance Program report, adopt a resolution establishing ambulance service rates, and authorize the purchase and financing of one ambulance is to support an existing municipal service and facilities without expansion of the use.
Further, none of the exceptions outlined in CEQA Guidelines section 15300.2 apply. The project site does not contain any environmentally sensitive areas. There will be no cumulative impact resulting from successive projects of the same type in the same place, over time. There are no unusual circumstances resulting in a significant impact on the environment. There will there be damage to scenic resources, including trees, historic buildings, rock outcroppings or similar resources, within a highway officially designated as a state scenic highway. The project is not located on a hazardous waste site or any other site included on a list compiled pursuant to Government Code section 65962.5. The project will not result in significant adverse impacts to historical resources as defined by CEQA. Consequently, additional environmental analysis is not necessary to meet the requirements of the CEQA.
SECTION 5. If any action, subsection, sentence, clause, or phrase of this Resolution or the application thereof to any person or circumstance shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this Resolution that can be given effect without the invalid provisions.
SECTION 5. The City Clerk shall attest as to the adoption and execution of this Resolution 10 10 of 395
-5- Reso. #26.XXX
and cause the same to be maintained in the permanent records of the City.
ADOPTED this 14th day of April, 2026.
Mark Orgill, Mayor
ATTEST:
Ann Marie McKay, City Clerk
I, Ann Marie McKay, City Clerk of the City of Laguna Beach, certify that the foregoing Resolution No. 26.XXX was duly adopted at a regular meeting of the City Council of said City held on April 14, 2026, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
City Clerk, City of Laguna Beach, CA
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COOPERATIVE AGREEMENT REGARDING
ONE (1) 2026 LEADER ‘LE’ CUSTOM CONVERSION
TYPE III AMBULANCE MOUNTED ON A FORD E350
4x2 GAS CHASSIS
This Cooperative Agreement for One (1) 2026 LEADER ‘LE’ CUSTOM CONVERSION TYPE III AMBULANCE MOUNTED ON A FORD E350 4x2 GAS CHASSIS is entered into as of the 14th day of April 2026, by and between the City of Laguna Beach, a Municipal Corporation (“City”) and Professional Sales & Services, L.C. (“Contractor”), with its principal place of business at 1720 W Indiana Ave, Salt Lake City, UT 84104, effective from April 14, 2026 and continues in effect through February 28, 2028 , based on the Sourcewell Cooperative Agreement #122123.
City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
WHEREAS, on June 20, 2023, Sourcewell, a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota, entered into a contract with REV Group, Inc. Cooperative Agreement #122123-RVG for various products and services, including (the “Sourcewell Contract”); and
WHERAS, Contractor is the authorized dealer for the ambulance in the State of California as stated in the Sourcewell Contract; and
WHEREAS, the Sourcewell Contract allows the provisions and pricing to be extended to municipal governmental entities and includes Contractor as an Authorized Selling Agent; and WHEREAS, it is in the public interest of the City to obtain the above mentioned ambulance services to ensure the efficient operation of the City; and WHEREAS, the City, therefore, desires to utilize the pre-negotiated pricing, terms, and conditions established under the Sourcewell Contract for one (1) 2026 Leader ‘LE’ custom conversion type III ambulance mounted on a Ford E350 4x2 gas chassis to ensure efficiency, cost-effectiveness, and continuity in addressing the City’s public safety needs; and, WHEREAS, pursuant to Section 2.30.050(c) of the Laguna Beach Municipal Code, the City is exempt from customary bidding procedures if the underlying purchase was based on the bidding efforts of another public agency or cooperative agreement; WHEREAS, Contractor has the experience, equipment, manpower, general ability, and resources as well as the necessary qualifications to provide the maintenance support services; and
WHEREAS, for greater economy and efficiency and to benefit its citizens, the City wishes to contract with Contractor to provide the City with that product as set forth in the Sourcewell Contract on the same terms and conditions set forth therein pursuant to this Agreement.
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the Parties hereto agree as follows:
1. Recitals. The foregoing recitals are true and correct and are a part of this Agreement.
Attachment 2
12 12 of 395
2. Exhibits. The Sourcewell Contract is attached hereto as Exhibit “1” and incorporated into and made a part of this Agreement. In interpreting this Agreement and resolving any ambiguities, the main body of this Agreement takes precedence over the Sourcewell Contract.
3. Terms. For purposes of this Agreement, the following terms and references within the Sourcewell Contract will be adjusted as outlined below:
A. Any reference to Sourcewell or the State of Minnesota is changed to the City of Laguna Beach.
B. Any reference to Sourcewell or the State of Minnesota personnel is changed to the corresponding City of Laguna Beach personnel.
4. Scope of Work. Contractor will provide the products and all other contractual responsibilities that Contractor assumes in the Sourcewell Contract in accordance with the terms of this Agreement. City will perform its contractual responsibilities towards Contractor in accordance with the Sourcewell Contract and this Agreement. Specifically, one (1) 2026 Leader ‘LE’ custom conversion type III ambulance mounted on a Ford E350 4x2 gas chassis as set forth in Exhibit “2.”
5. Compensation and Term. City agrees to pay Contractor based on the schedule of fees set forth in the Sourcewell Contract and in an amount not to exceed $314,988.71 on the 7-year financing schedule reflected in Exhibit “2”, which is attached hereto and incorporated herein by reference. For the avoidance of any doubt, Exhibit 2 consists of the proposal and sales order for one (1) 2026 Leader ‘LE’ custom conversion type III ambulance mounted on a Ford E350 4x2 gas chassis as well as a two-page (last two pages) financing arrangement. City and Contractor acknowledge and agree that the terms of the Sourcewell Contract shall apply and extend through any renewal term even if the Sourcewell Contract is terminated or ends.
6. General.
A. Terms and Conditions of the Sourcewell Contract. Except as otherwise adjusted herein, all other terms and conditions of the Sourcewell Contract, including all insurance, warranties, and indemnities, remain in full force and effect.
B. Entire Agreement. This Agreement, including all Exhibits, constitutes the entire agreement of the Parties regarding the subject matter of the Agreement and supersedes all previous agreements, proposals, and understandings, whether written or oral, relating to this subject matter. This Agreement may be executed in multiple counterparts, and shall have the same legal force and effect as if the Parties had executed it as a single document. The Parties may sign in writing, or by electronic signature, including by email. An electronic signature, or a facsimile copy or computer image, such as a PDF image, of a signature, shall be treated as and shall have the same effect as an original signature. In addition, an electronic signature, a true and correct facsimile copy or computer image of this Agreement shall be treated as and shall have the same effect as an original signed copy of this document. This Agreement may be amended or modified only by a written instrument signed by authorized representatives of both Parties.
7. Authority to Execute Contract. The person(s) executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so 13 13 of 395
executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound.
8. Notices. Unless otherwise provided herein, any notices required to be given under the Agreement shall be in writing with copies as directed herein and shall be personally delivered, or delivered by United States mail, prepaid, certified, return receipt requested, or by reputable document delivery service that provides a receipt showing date and time of delivery. Notices personally delivered or delivered by a mail document delivery service shall be effective upon receipt. Any notice given by mail shall be deemed to have been given when deposited in the United States mails certified and postage prepaid, addressed to the party to be served as follows:
Packet Fusion, Inc:
Packet Fusion
Attn: Todd Peterson
2701 Merced Ave
So El Monte, CA 91733
[email protected]
City’s Project Manager:
City of Laguna Beach
Attn: Andrew Hill, Deputy Fire Chief
505 Forest Avenue
Laguna Beach, CA 92651
[email protected]
Changes in the address to be used for receipt of notices shall be effected in accordance with this Section.
[SIGNATURES ON NEXT PAGE]
14 14 of 395
SIGNATURE PAGE FOR CITY OF LAGUNA BEACH COOPERATIVE
AGREEMENT REGARDING One (1) 2026 LEADER ‘LE’ CUSTOM
CONVERSION
TYPE III AMBULANCE MOUNTED ON A FORD E350 4x2 GAS CHASSIS SUPPORT IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the date first written above.
CITY OF LAGUNA BEACH
Approved By:
Niko King
Fire Chief
Attested By:
___________________________________
Ann Marie McKay
City Clerk
Approved as to Form:
City Attorney
PROFESSIONAL SALES AND SERVICE,
L.C.
Approved By:
Signature
Name
Title
Attested By:
Signature
Name
Title
15 15 of 395
EXHIBIT “1”
SOURCEWELL CONTRACT #122123-RVG
AVAILABLE AT:
HTTPS://WWW.SOURCEWELL-MN.GOV/COOPERATIVE-PURCHASING/122123-RVG 16 16 of 395
EXHIBIT “2”
PROFESSIONAL SALES AND SERIVCE, L.C.
SALES ORDER L-745435
&
MUNICIPAL FINANCE PROPOSAL DATE FEBRUARY 19, 2026
[ATTACHED]
17 17 of 395
July 28, 2024
To Whom It May Concern:
Leader Emergency Vehicles rely on a trusted dealer network, and we greatly value Professional Sales & Service, L.C. as the authorized dealer for our products in the State of California under the Sourcewell contract 122123-RVG, this information can be verified by visiting the Leader website https://leaderambulance.com/dealer-locator/. Additionally, I have attached the signed Sourcewell contract for your review.
Please let me know if I can be of further assistance.
Best regards,
Holly Russell, DBA
Contract Representative-Sourcewell
407-754-7181
[email protected]
Exhibit 1
18 18 of 395
February 20, 2026
Laguna Beach Fire Department 501 Forest Avenue
Laguna Beach, CA 92651
To Whom It May Concern,
Professional Sales and Service, LC respectfully provides Laguna Beach Fire Department the following ambulance proposal. We look forward to helping you with your ambulance needs today and in the future.
Take a look at Leader and you will see why we are so well regarded in the ambulance industry and among the finest available anywhere. A Leader emergency vehicle is custom built right here in California to withstand the rigors of ambulance service. Leader ambulances are tested and engineered to be incredibly structurally sound which provides the EMS crew and patient with a great working environment. An ambulance built to a higher quality standard will provide reduced operating costs over the many years the vehicle is in service!! When it comes to quality, durability, customization, Leader continues to be at the forefront in the ambulance manufacturing industry
AMBULANCE PRICE………………………….………$238,633.89
This includes graphics, paint, stealth switch and Opticom.
Preformance Load System………………………..……….$9,388.00
Power Pro 2 High Config…………………………………$32,257.00
Estimated Sales Tax…………………….………………...$21,721.61
CA Tire Fee…………………………………………………….$12.25
DELIVERED PRICE………………………………….... ........$302,012.75
One (1) 2026 LEADER ‘LE’ CUSTOM CONVERSION
TYPE III AMBULANCE MOUNTED ON A FORD E350
4x2 GAS CHASSIS
Exhibit 2
19 19 of 395
PROPOSAL CONDITIONS
F.O.B. POINT: Laguna Beach, CA 92651
DELIVERY: Estimated delivery time 8-10 months from order date. Please note all delivery times are quoted barring any delays due to strikes, availability of component parts (including chassis), or acts of God
SERVICE: Professional Sales & Service has been selling and servicing ambulances since 1975.
We have factory trained technicians and a large inventory of parts so you know that in the unlikely event of a problem we are only a phone call away. Please be reassured that nearly every possible repair can be accomplished locally. Which allows PSS to get your ambulances back in to service as quickly as possible.
WARRANTY: LEV Ambulances feature one of the most progressive, no-nonsense warranties around. LEV does not pro-rate their warranties so there are no surprises should you ever need it.
PAYMENT TERMS: Payment due upon delivery and acceptance of vehicle by Laguna Beach Fire Department. If the pre-payment discount option is chosen, payment is due upon approval of the specification and when construction begins.
Unless accepted within Sixty (60) days from the above date, the right to withdraw this proposal is reserved. If there are any additions/deletions to our bid, please contact us for pricing details or credits.
We are confident you will be completely satisfied with a quality Leader ambulance and the service which PSS provides. Let us know what we can do to help you with your evaluation process.
Respectfully Submitted,
Professional Sales and Service, LC
Braxton T. Peterson, General Manger
Laguna Beach Fire Department agrees to purchase the vehicle detailed in this proposal, from Professional Sales and Service, L.C. and understands and agrees with the terms specified within these documents. _______________________________ ______________________________ ____________ Authorized by (Print name) Signed Date
Please let us know if you have any questions regarding this proposal. We are happy to assist you in any way that we can.
20 20 of 395
Rev.12/09/20
Sales Order
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
10 - BASE SECTION
10 . 0 1 Prep modular and misc
10 . 0 51 Ford Type III 94/148" "LE" w/ 72" headroom, Base Conversion (NOTE: Conversion Based On Ford E-350 4x2 Gas Chassis)
DNET Pricing + Discount
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 1 of 18 21 21 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
10 . 0 774 (2024) FORD V8 E350 Gas Cutaway Chassis:
(PRICE SUBJECT TO CHANGE)
138” Wheelbase Dual Rear Wheel
7.3 Liter V-8 Gasoline Engine
50 State Emission
Electronic 6-Speed Automatic Transmission
Cruise Control
Mirrors Trl, Tow
Frame Pucks
Rear Axle, 4.10 Limited Slip
11,500 GVWR
Front GAWR, 4,600 lbs
Rear GAWR, 7,800 lbs
Ambulance Prep Package, 47H
Heavy Duty Alternator, 240 Amp
Aux Heat/AC connection
Dual batteries STD Ford OEM
Fuel tank 40 Gallon
Interior Upgrade Package
·Cloth Headliner
·High trim door panels
·Captain Chairs dual cloth
·Cloth sun visors
·Power Door locks
·Power Windows
·Insulation package
Keyless entry, with keyfob with panic button
Daytime Running Lights
Cab Floor, OEM Black Vinyl
Medium Flint interior color
AM/ FM/ Clock, 4 speakers
Tires:(6) All season, Random Make LT225/75R16,LRE
Spare Tire and Wheel (shipped loose)
Jack and Tire Tools (shipped loose)
Exterior upgrade package
Chrome Front bumper
Chrome Grill and light surrounds
Exterior paint Oxford White
Engine Block Heater
Integrated Back-Up Camera
11 - BASE SECTION - OPTIONS
20 - PRE TAX
20 .-1 1 DMV Processing & Doc Fees
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 2 of 18 22 22 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
21 - PRE TAX - OPTIONS
30 - AFTER TAX
30 . 12 56 MANUFACTURES CREDIT: ( Must supply FIN or K code to qualify)
IF APPLICABLE GPC CREDIT WILL BE APPLIED AT TIME OF INVOICE PLEASE NOTE ! FORD, CHEVY, CHRYSLER, RESERVES THE RIGHT TO REVOKE THESE CREDITS
AT ANY TIME)
31 - AFTER TAX - OPTIONS
40 - COMPLIANCE
40 .-1 1 KKK-A1822F Data Labels (w/ Letter of Exception if required) 41 - COMPLIANCE - OPTIONS
50 - CHASSIS ITEMS STANDARD
50 .-1 1 Wheel Alignment Toe-In Verification
50 .-1 2 Headlight Aim Verification
50 .-1 3 Alternator Single, OEM
50 .-1 4 Batteries Dual, OEM
50 .-1 5 Fast Idle System (Gas Engine)
50 .-1 6 Fuel, fill fuel tank.
51 - CHASSIS ITEMS OPTIONS
745435 Chassis: Quoted By: 2/2/2026 Page 3 of 18
23 23 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
60 - MODULAR BODY ITEMS - STANDARD
60 . 0 1 Modular Body, Dimensions: 94" wide x 148" long x 72" Headroom 60 . 0 2 The module body shall be constructed to provide a minimum fifteen (15) year warranty. 60 . 0 3 Module body shall have an additional (5) year warranty when remounted by an approved remount facility. 60 . 0 4 The corner post shall be extruded aluminum (6063-T5 alloy). 60 . 0 5 The roof corners shall be extruded aluminum (6063-T6 alloy). 60 . 0 6 The exterior wall and roof tubes shall be min (2) inch square with min .125 wall thickness, located on twelve (12) inch centers.
60 . 0 7 In addition to the vertical wall supports there shall be a horizontal beam, located in the beltline area. 60 . 0 8 Gusset supports shall be provided.
60 . 0 9 The exterior body panels shall be 5052-H32 alloy. 60 . 0 10 The thickness required for exterior body panels is:
-Side, front, and rear walls: .125
-Roof panels: .090
-Floor panels: .050
60 . 0 11 Floors shall be aluminum beams covered by aluminum sheeting. 60 . 0 12 All exterior aluminum body panels shall be attached to the structural supports via high performance polyurethane two sided tape.
60 . 0 13 Each body panel shall be welded to horizontal frame members, roof extrusions, and vertical corner posts.
60 . 0 14 The door skin and edges shall be formed from a single sheet of aluminum 60 . 0 15 Outer Door panels are aluminum .125 aluminum. 60 . 0 16 Each door shall include an internal extrusion for added reinforcement. 60 . 0 17 An inner door pan shall fit flush with the inner edges of the door. 60 .-1 18 All doors shall have full-length stainless steel hinges. 745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 4 of 18 24 24 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
60 . 0 19 Body incorporates smooth exterior body skin folded into door jambs. 60 . 0 20 Must have full seat travel in the cab. A minimum 6" recess shall be designed into the front bulk head wall of the module body to accomplish this.
60 . 0 21 A total of (10) ten isolator mounts distributed along the top of the frame rails. 60 . 0 22 Each of the module body access doors shall include window cut-outs. 60 . 0 23 Stainless steel splash shields installed on the lower front face of the module body just aft of the cab access doors.
60 .-1 24 Rear kick plate made out of polished aluminum Diamond plate 60 .-1 25 (4) Aluminum diamond plate corner caps - 14" high 60 . 0 26 Cab Running Boards, polished aluminum NFPA diamond plate w/ mud flap. 60 .-1 27 Drop Skirt, Curb side forward w/ (2) step entry 60 .-1 28 Polished Aluminum rear fender flares around each rear wheel well opening. 61 - MODULE ITEMS - OPTIONS
67 - EXTERIOR COMPARTMENTS - STANDARD
67 .-1 1 All exterior compartments will be constructed out of polished aluminum diamond plate 67 .-1 2 M1-STREETSIDE FRONT COMPARTMENT
This area shall be accessed through a single outside hinged door.
The compartment shall house the vehicles primary O2 cylinder.
The compartment shall be vented to the outside.
Vertical track for mounting of a QRM-V O2 bottle mount shall be welded on the #2 wall of the compartment
(See drawings for compartment sizes)
67 .-1 3 M2-STREETSIDE INTERMEDIATE COMPARTMENT
This area shall be accessed through a single hinged door This compartment will house vacuum pump, and optional inverter.
Supply (1) 1-1/2" Black strap w/ quick release clip for Stairchair storage. (See drawings for compartment sizes)
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 5 of 18 25 25 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
67 .-1 4 M3-STREETSIDE REAR COMPARTMENT
This area shall be accessed through a single hinged door This compartment will house spare tire and changing tools (See drawings for compartment sizes)
67 .-1 5 M4-CURBSIDE REAR COMPARTMENT
This area shall be accessed through a single hinged door This compartment will house backboards
Supply (1) 1-1/2" Black strap w/ quick release clip for Backboard storage on the #1 wall (See drawings for compartment sizes)
67 .-1 6 M5-CURBSIDE INTERMEDIATE COMPARTMENT
This area shall be accessed through a single hinged door. (See drawings for compartment sizes)
67 .-1 7 M6-CURBSIDE FRONT (UPPER) COMPARTMENT
This area shall be accessed through a single hinged door.
Interior / exterior ALS access.
(See drawings for compartment sizes)
67 .-1 8 M7-CURBSIDE FRONT (LOWER) COMPARTMENT
Battery Compartment:
This compartment shall be accessed through a single hinged door.
This compartment will house (2) batteries on a slide out tray.
This compartment requires venting.
(See drawings for compartment size)
68 - EXTERIOR COMPARTMENTS - OPTIONS
69 - CHASSIS - MODULAR MODIFICATIONS @ LEADER - STANDARD 69 .-1 1 All exterior compartments shall have black rubber matting on compartment bottoms and shelves 69 .-1 2 Interior LED Lighting in all exterior compartments with the exception of the M5 battery compartment, (2) verticle LED strip lights incased in aluminum extrusion from top to bottom located on backside of door jam.
69 .-1 3 Install exterior flush mount paddle handle assembly in Entry and Compartment doors (Excluding Nader Pins & Latches). Tri/Mark cast metal chrome plated and buffed to a high luster finish, keyed alike #2002.
Rear Entry doors shall be equipped with manual safety release latches at top and bottom of doors. 69 .-1 4 Recessed license plate holder (Cast Product) w/ LED light (See Print for Location) 69 .-1 5 Install individual rear mud flaps behind each set of rear wheels. 745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 6 of 18 26 26 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
69 .-1 6 All patient compartment entry doors shall have red reflectors in the lower corner (interior) 69 .-1 7 Exterior of modular shall have rectangular reflectors, amber in the lower corners in front, red in lower corners in rear
69 .-1 8 Power activated door locks installed on patient compartment access doors, activated by cab (OEM) door lock switches, and patient comp. access door lock switches - mounted in bezels 69 .-1 9 Stainless steel DOT approved wheel inserts shall be installed on all four outside wheels of the chassis.
69 .-1 10 Stainless steel filler extensions will be installed on rear wheels. 69 .-1 11 Install (2) tow hooks under rear of vehicle, attach to bumper frame 69 .-1 12 The rear of the vehicle shall be equipped with a Leader step/bumper assembly. The center section of the rear step bumper shall be constructed of aluminum w/ star punched safety grip, and hinged to assist in patient loading. Both end caps covered in fixed polished aluminum diamond plate with 30 degree tapered ends. Angle of Departure to be a minimum of 10 degrees. 69 .-1 13 Install Fixed windows in the (2) rear patient access doors, and (1) sliding window in side access door. All (3) windows shall feature a dark privacy tint.
69 .-1 14 Side Entry Door and Exterior Compartment Doors shall have gas-filled hold opens. 69 .-1 15 Rear Entry doors shall have Grabber style hold open devices. 69 .-1 16 Polished Stainless Steel lower body rub rails installed on each side of the Module body. 69 .-1 17 Aluminum Drip Rails mounted over Exterior Compartments and Rear Entry Doors. 69 .-1 18 (3) Entry Doors Inner Door Panels. ACM, White in color, inner door panels. (3) Piece w/ removable center. (2) Rear entry doors , (1) Side entry door. 69 .-1 19 (7) Exterior Compartment Inner Door panels, install .125 polished aluminum diamond plate inner door panels.
69 .-1 20 Aluminum Brackets/Supports for the following:
-Cargo Net Plates
-A/C Bracket, Base Plate, Ceiling Track
-Grab Bar Plates
-Gas Shock Brackets
-Seat Belt Plates
69 .-1 21 All module doors shall incorporate an extruded rubber seal located around the perimeter of the door. 70 - CHASSIS - MODULAR MODIFICATIONS @ LEADER - OPTIONS 745435 Chassis: Quoted By: 2/2/2026 Page 7 of 18
27 27 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
70 . 0 1 Entry door panel change:
- Delete ACM material
- Use 1/8" aluminum with white gloss laminate
- Delete 6" conspicuity material and use 12" instead
By: Jorge Morales Martinez
200 - INTERIOR CABINETS - STANDARD
A .-1 1 A1: Streetside Lower Cabinet:
-Plywood construction with laminate finish.
-Exterior stainless steel riser.
-CPR section w/ storage below w/ hinged lid w/ gas cylinder hold open device & seat belt hold down strap on lid.
-Gabraltar counter top w/ lips.
A .-1 2 A2: Streetside Upper Rear Cabinet:
-Plywood construction with laminate finish.
-(1) Latex glove storage (holds 3 glove boxes)
-(1) Hand sanitizer dispenser.
-(3) storage cabinets w/ adjustable shelves held in place with aluminum unistrut track, w/ sliding polycarbonate windows w/ KKK-A1822F Positive Latch Device. (Each storage cabinet labeled for maximum weight of 40lbs) A .-1 3 A3: Streetside CPR Rear Wall / Hold Down Strap:
-Seat belt hold down strap for hinged lid.
-Plywood constuction with laminate finish.
A .-1 4 A4: Streetside Action Wall Cabinet:
-Plywood construction with laminate finish.
-(1) locking drug cabinet w/ hinged door and 7/8" lock. -(1) upper storage cabinet w/ sliding polycarbonate windows w/ KKK-A1822F Positive Latch Device. (Drug cabinet labeled for maximum weight of 10lbs)
(Storage cabinet labeled for maximum weight of 40lbs)
A .-1 5 A5: Streetside Forward Wall/Driver Side Partition:
-Plywood construction with laminate finish.
-Upper removable A/C access panel.
-(1) A/C intake vent w/ filter.
-Opening for oxygen access with hinged polycarbonate door.
A .-1 6 A6: Upper A/C Plenum:
-Upper A/C horizontal plenum chamber fabricated out of Styrene board. -Filler face covered w/ vinyl w/ (6) rotating A/C louvers, (1) exhaust intake louver. 745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 8 of 18 28 28 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
A .-1 7 A7: Upper Partition Cabinet:
-Plywood construction with laminate finish.
-Electrical storage cabinet, (1) hinged wood door w/ (2) gas cylinder hold open devices, w/ locking Chrome "D" ring latch,this will house electrical components. -Apply electrical schematic to back side of door.
A .-1 8 A8: Hinged Partition Door:
-Plywood construction with laminate finish.
-Partition door w/ Chrome "D" ring latch, hinged on passenger side, door will swing into patient compartment.
-Sliding (clear) polycarbonate window.
A .-1 9 A9: Curbside Bulkhead Cabinet:
-Plywood construction with laminate finish.
-ALS w/ exterior access, split cabinet with fixed center shelf. -Upper section w/ (1) adjustable shelf w/ aluminum lip, w/ (2) hinged wood lap style doors with (1) Paddle handle slam latch.
-Lower section w/ (1) adjustable shelf w/ aliminum lip, w/ (2) hinged wood lap style doors with (1) Paddle handle slam latch.
(Each storage cabinet labeled for maximum weight of 40lbs) A .-1 10 A10: Curbside Squad Bench/Wall:
-Plywood construction with laminate finish.
-Exterior stainless steel riser.
-(2) hinged lids w/ gas cylinder hold open devices & seat belt hold down straps on each lid. -(1) (Kendall 5qt.) sharps container w/ turn latch to secure drop-in style Sharps container located at head end of bench.
-(1) waste container with a single hinged Red polycarbonate lid w/ aluminum edge handle, located at head end of bench.
-NOTE: Includes (1) Sharps & (1) Trash container.
A .-1 11 A11: Upper Curbside Cabinet:
-Plywood construction with laminate finish.
-Cabinet over squad bench, (2) storage cabinets divided into two sections w/ hinged (flip up) 3/8" polycarbonate doors w/ Chrome "D" ring latches.
(Each storage cabinet labeled for maximum weight of 5lbs) A .-1 12 A12: Center Console:
-Plywood construction with laminate finish.
-Located between cab seats.
-(2) side vents, removable lid, detachable rear map box w/ (3) polycarbonate dividers. -(2) cup holders.
-(2) 12 volt USB ports.
Laminate Color: Dark Grey
A .-1 13 A13: Action Wall Panel:
-Plywood construction w/ (Gloss Black Laminate Finish), location for electrical components.
A .-1 14 A14: Patient Compartment Ceiling:
-1/4" laminated MDF.
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 9 of 18 29 29 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
A .-1 15 A15: Patient Compartment Sub Floor:
-3/4" Marine Grade plywood.
A .-1 16 A16: Gibraltar "Liquid Stop"
-Located on floor in walkthrough, between cab & modular 2000 - INTERIOR CABINETS - OPTIONS
A . 0 2002 Patient compartment sub floor change:
- Use 5x10 material.
By: Jorge Morales Martinez
A . 0 2004 A10 - Squad Bench Lid Change:
-Delete gas cylinder hold open devices
-Replace with (2) 65lb Constant Torque Hinges per lid
By: David Bakey
A . 0 2005 CABINETS:
Outsourced Cabinet Labor / Leader Supplied Materials
By: David Bakey
300 - INTERIOR TRIM AND COLOR - STANDARD
B .-1 1 Floor color/material - (Coved), Anti-Microbial, UV Protected, Lonseal - Loncoin II Flecks Sapphire #152UV (Blue)
B .-1 2 (3) Seat Cushions, (3) Back Rests, (2) Head Rests, (2) CPR Side Bumpers, (3) CPR Head Bumpers, Gimp, Headbumpers, Fillers.
Upholstery color/material - "Water Fall" style w/ velcro fasteners.
Color: Blue Academy Independence #IND-8601 (L#05-077)
B .-1 3 Attendant Seat color/material, (1) High Back (EVS) Seat, 6 degree back, IMMI-PER4MAX, 4 point black restraint, w/ sliding track & swivel seat base.
Color: Blue Academy Independence #IND-8601 (L#05-077) "sewn", w/ Leader-Logo.
B .-1 4 Laminate color, patient compartment, exterior & interior cabinets, (Gloss) White #D354-F1 Wilsonart B .-1 5 Laminate color, patient compartment ceiling, (Gloss) White #D354-F1 Wilsonart B .-1 6 Modular Entry Door Panels (3) Piece w/ removable center. Refer to Item #69.18:
Color: White Aluminum for upper & stainless steel for lower section.
Color: Removable aluminum center section w/ 6" 3M Blue Diamond Grade #DG3 #4095 reflective safety stripe.
B .-1 7 Polycarbonate color .240, tinted
B .-1 8 Polycarbonate sliding doors, retain handles on doors and provide KKK-A1822F Positive Latch Device with provision to accommodate security cable ties.
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 10 of 18 30 30 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
B .-1 9 Counter Top Color, "Pebble Blue" - Gibraltar Material B .-1 10 The patient area walls & ceiling of the vehicle shall be insulated w/ Expanded Polystyrene Foam for both thermal and acoustic insulation.
The ceiling (only) will have additional insulation using single foil backed bubble reflectix.
B .-1 11 The Modular Rear and Side Entry doors to be insulated w/ Foil Backed Polydamp Damping Pad w/ Foam Insulation.
(no styrofoam)
3000 - INTERIOR TRIM AND COLOR - OPTIONS
400 - WARNING DEVICES - STANDARD
C .-1 1 Warning lights, front of upper module ILO lightbar, (7) total, (6) Flashing Whelen LED 900 Series Warning Light Red w/ Red lens. (1) Flashing Whelen LED 900 Series Warning Light White w/ Clear lens. Chrome flanges included.
"R" - "R" - "R" - "W" - "R" - "R" - "R"
C .-1 2 Warning lights, side, (4) Total, (2) Flashing per side, Whelen LED 900 Series Warning Light Red w/ Red lens. Chrome flanges included.
C .-1 3 Warning lights, rear of vehicle, upper outboard corners, (2) Flashing Whelen LED 900 Series Warning Light Red w/ Red lens. Chrome flanges included.
C .-1 4 Warning lights, rear of vehicle, window level, (2) Flashing Whelen LED 900 Series Warning Light Amber w/ Amber lens. Chrome flanges included.
C .-1 5 Warning lights grille, (2) Whelen ION T-Series Linear Super LED (STEADY BURNING) Red w/ Clear lens & Chrome Flange.
Mounted on upper horizontal grille bar.
C .-1 6 Intersection lights, front fenders, (2) Flashing Whelen LED 700 Series Warning Light, Red w/ Red lens.
Chrome flanges included.
See Item #:4001
C .-1 7 Headlight flasher, Leader solid state, electronic, console switch.
C .-1 8 Siren speakers, (2) Cast Products 100 watt siren speakers, recessed through front OEM bumper. (Polished Aluminum Finish)
C .-1 9 Scene lights, upper sides, (4) total, (2) per side, Whelen LED 900 Series Scene Light, w/ Clear lens.
Chrome flanges included. Curbside to activate via Rocker switch in cab, and when curbside patient compartment access door is opened.
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 11 of 18 31 31 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
C .-1 10 Scene lights, upper rear, (2) Whelen LED 700 Series Scene Light w/ Clear lens. Chrome flanges included. To activate via Rocker switch in cab, and when rear patient compartment access door is opened.
C .-1 11 Running board lights, (2) Whelen #20C0CDCD LED, (1) per side mounted in splash shield, activate via cab doors, constant hot.
C .-1 12 Front, rear, side, FMVSS LED marker lights w/ Chrome housings.
Front; (5) Amber lights
Rear; (5) Red lights
Side @ Rear (2) Red lights
C .-1 13 Back-up, turn and stop/tail lights, w/ Chrome flanges shall be as follows:
(2) Turn Signal Whelen LED 600 Series Amber w/ Arrow, - outboard on diamond plate. (2) Stop/Tail Lights, Whelen LED 600 Series Red w/ Red lens - inboard on diamond plate. (2) Back-Up Lights, Whelen LED 600 Series White w/ Clear lens - above diamond plate on body.
C .-1 14 3rd Brake light, rear upper center, Kinequip LED C .-1 15 Back-up alarm, rear mounted, 97 decibel with auto reset, console defeat switch C .-1 16 Siren electronic, located in overhead console, Whelen dual tone 295HFSA7 w/ remote amp CA spec, (hi-lo deleted) 100 watt output w/removable mic, hands free horn ring control.
NOTE: Siren to be activated via Primary/Secondary Switch in Primary Mode Only. 4000 - WARNING DEVICES - OPTIONS
C . 0 4001 Intersection lights, front fenders, (2) Flashing Whelen 500 TIR6 Super LED Red w/ Red lenses. Chrome flanges included.
500 - ELECTRICAL CONTROL CENTER - STANDARD
D .-1 1 Electrical component center, all conversion components, 5 minute shut down timer, KKK-A1822 F Vanner flasher, KKK-A1822F Flash Pattern, circuit boards, relays, solenoids, circuit breakers, etc. Located in A7 cabinet.
D .-1 2 Overhead console, fiberglass (Grey) overhead console to house switches, siren, indicator lights.
D .-1 3 Dimmer switch for rocker switch backlighting. (cab only) Located on cab overhead console.
D .-1 4 Electrical Switch Panel, front overhead console. (Carbon Fiber Finish) D .-1 5 Voltage Meter Digital, (Kinequip) w/ audible low voltage warning, buzzer will sound if voltage drops below
11.8 console mounted.
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 12 of 18 32 32 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
D .-1 6 Amperage Meter Digital, (Kinequip) with remote induction sensor - no shunt, console mounted.
D . 0 7 Indicator lamps - "EMERG START" Red / "MASTER ON" Green.
D . 0 8 Indicator lamps - "DOOR OPEN" Red / "COMPARTMENT OPEN" Amber.
D .-1 9 Indicator lamps - "LOW VOLTAGE" Amber / "PARKING BRAKE" Red.
NOTE: Parking Brake to have audible buzzer in addition to indicator lamp.
D .-1 10 Switch, "PRI. SEC" w/ center off, Primary controls all emergency lights, Secondary controls all emergency lights except White upper forward facing warning light, Grille lights, and Intersection lights. Red/Amber Switch.
D .-1 11 Switch, "HEADLIGHT FLASHER" lit White.
D .-1 12 Switch, "BACK-UP ALARM" non-lit momentary.
D .-1 13 Switch "LEFT SCENE" lit White.
D .-1 14 Switch "REAR SCENE" lit White.
D .-1 15 Switch, "RIGHT SCENE" lit White.
D .-1 16 Switch, "PATIENT DOME", 3-way, lit Amber.
D .-1 17 Switch, "PATIENT HEAT/AC" 3-way, lit Blue.
D .-1 18 Switch, "MODULE DISCONNECT" lit Green.
D .-1 19 Switch, "EMERGENCY START" momentary switch with unlock button, lit Red.
D .-1 20 Map lights, (2) dual Red/White LED map lights located in cab overhead console, (1) above driver, (1) above passenger.
D .-1 21 Handheld LED Spot light, "Nighthawk" hard wired. (clip supplied loose) D .-1 22 Two-way radio power, Positive-Negative-Ignition, with terminal strip, located inside center console.
D .-1 23 Back-Up Camera, OEM integrated, OEM camera located above modular rear entry doors. 5000 - ELECTRICAL CONTROL CENTER - OPTIONS
745435 Chassis: Quoted By: 2/2/2026 Page 13 of 18
33 33 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
600 - ELECTRICAL PATIENT COMPARTMENT - STANDARD
E .-1 1 Dome lamps, ceiling, (8) flush mount, Whelen LED High - Low Dome Lights. Door jamb switch activated (low intensity) and switch panel activated (high-low)
E .-1 2 Electrical outlet 12 volt, Blue Sea #1011, Two (2) cigarette lighter style.
NOTE: (Unless noted 12 volt outlets will shut down with timer) Location:
(1) Rear action wall area. (Mounted on Carbon Fiber Plate) (1) ALS cabinet. (Mounted on Carbon Fiber Plate)
E .-1 3 Electrical outlet 12 volt Combination USB Port Type A 3.0 / Type C 4.0 Quantity (3)
NOTE: (Unless noted 12 volt USB outlets will shut down with timer) Location:
(2) Center console. (Refer to prints for location) - (No mounting Plate) (1) Action wall area. (Refer to prints for location) - (Mounted on Carbon Fiber Plate) E .-1 4 Electrical, (2) 120V (15amp GFI protection via Inverter) Illuminated outlets, 14- AWG (3) conductor cable terminating in Inverter compartment w/ male plug on end of cable. Connect to (optional) Inverter or to shoreline power.
(1) ALS cabinet area. (refer to print for location)
(1) Action wall. (refer to print for location)
E .-1 5 Interior cabinet lighting, LED strip lighting inside compartments, activated w/ lit switch in action wall E .-1 6 Work Light, LED strip light located under action wall panel for attendant. Activated w/ lit switch in action wall.
E .-1 7 Work Light, LED strip light inside electrical cabinet. Activated via momentary door switch, hot @ all times.
E .-1 8 (12) Position switch panel patient compartment, (Carbon Fiber Finish) E .-1 9 Switch, "PATIENT DOME" 3-way, lit Amber.
E .-1 10 Switch, "DOME HI-LO" lit White.
E .-1 11 Switch, "EXHAUST" lit Amber.
E .-1 12 Switch, "ELECT SUCTION" lit Amber.
E .-1 13 Switch, "PATIENT HEAT A/C" 3-way, lit Blue.
E .-1 14 Switch, "A/C FAN HI-LO", lit White.
E .-1 15 Switch, "A/C HEAT-COOL" lit Red
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 14 of 18 34 34 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
E .-1 16 Switch, "COMPARTMENT LIGHTS" lit White.
E .-1 17 Switch, "WORK LIGHT" lit White.
E .-1 18 Shore power, 120V, 15 amp w/ Hubbel cast cover, inlet located behind driver door, 10- AWG (3) conductor cable from Shoreline inlet terminating in electrical box behind drivers seat w/ 15 amp circuit breaker. 12-AWG (3) conductor cable from electrical box behind drivers seat terminating in Inverter compartment w/ female plug on end of cable.
Connect female plug to 110V outlets or (optional) Inverter.
See Item #:6041
E .-1 19 Restocking light push button digital timer, located on curbside wall @ head end of squad bench, 5-15 minute, controls (4) dome lights over cot (high intensity) E .-1 20 Step Well Light LED, located in side door step well, door switch activated, E .-1 21 Inverter Pre-Wire, Includes 12 volt Pos-Neg with Anderson quick disconnect connector, terminating inside M2 exterior compartment. (Does not include remote panel or rocker switch) E .-1 22 Door Switches, magnetic door jamb switches for exterior compartments and patient access doors.
E .-1 23 Clock, Emergency Time Manager, mounted in action wall panel, chimes.
E .-1 24 AM-FM Speakers (2) above rear access doors in patient compartment E .-1 25 Battery Charger, IOTA 45 amp. (activated via shoreline) See Item #:6040
6000 - ELECTRICAL PATIENT COMPARTMENT - OPTIONS
E . 0 6040 Power Inverter and Battery Charger, 1100W Vanner "LifeSine" LSC12-1100, with fully integrated 1FM1 module, and Leader supplied rocker switch.
E . 0 6041 20 Amp Super Auto Eject (White Cover) Shore Power, 120V, inlet located behind driver door, 10-AWG (3) conductor cable from Shoreline inlet terminating in electrical box behind drivers seat w/ 15 amp circuit breaker. 12-AWG (3) conductor cable from electrical box behind drivers seat terminating in Inverter compartment w/ female plug on end of cable. Connect female plug to Inverter. 700 - ELECTRICAL AND MECHANICAL - STANDARD
F .-1 1 Air conditioning/heater, driver compartment switching control dash, OEM, w/prep for rear air.
F .-1 2 Air conditioning/Heater, patient compartment evaporator, ducted central air, w/ (filtered) air intake vent, and (6) A/C round louvers.
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 15 of 18 35 35 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
F .-1 3 Air conditioning hose, shielded low loss, wedged on fittings, R134 (included w/ F2) F .-1 4 Heater hose, Nomex, Ford QVM (included w/ F2)
F .-1 5 Tri-Battery system - (2) primary, and (1) emergency start, w/ resettable circuit breaker, redundant battery system wiring and electrical components. Overhead console mounted LED Red indicator lamp and activation switch. Includes (1) OEM (Primary) battery under hood in OEM location, (1) OEM (Primary) battery relocated to M6 battery comprtment, (1) Leader supplied 65 series (E-Start) battery located in M6 battery compartment.
F .-1 6 Shut Down Timer, with 5 min. delay activated via ignition switch.
F .-1 7 Wiring loom, Leader fabricated, hi temp SXL, color coded, number coded and function labeled, with split loom wire protection
F .-1 8 Antenna wiring (2) RG58A/U coax, roof location # 1 & 2 with Stainless Steel (Interior) access plates, terminate in cab, inside center console.
F .-1 9 Power Exhaust 4" vent, w/ Cowl vent cover.
(Refer to prints for location)
F .-1 10 Remote door lock release, front grille.
NOTE: Installation of Remote Door Lock Switch feature may increase the likelihood of unauthorized entry into vehicle. With this feature, purchaser further agrees to hold Leader Ind. or chassis manufacture harmless for any loss of vehicle of contents caused by unlawful access. (Customer has the option to Delete this feature)
F .-1 11 Reverse activated (rear) loading lights
F .-1 12 (2) Braided ground straps located between engine and chassis. 7000 - ELECTRICAL AND MECHANICAL - OPTIONS
F . 0 7001 WATER PUMP:
-Add 12V. High Flow Water Pump for Patient Compartment Heater By: David Bakey
800 - OXYGEN SYSTEM - STANDARD
G .-1 1 Aspirator, action wall area, SSCOR 22000, flush mount panel and gauge w/ S/S Canister Holder.
G .-1 2 Vacuum pump, 12V, w/vent tube to exterior. Locate in M2 exterior compartment.
G .-1 3 Oxygen system, (3) Amico Ohio style quick release, mounted on plastic trim rings, (2) in actionwall panel, (1) on wall above squadbench @ headend
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 16 of 18 36 36 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
G . 0 4 ZICO Main O2 Bracket - Locate in M1 exterior compartment. Capable of holding either "M" or "H" tank G .-1 5 Oxygen wrench, fasten cable to wall by oxygen bottle. 8000 - OXYGEN SYSTEM - OPTIONS
900 - HARDWARE -STANDARD
H .-1 1 Seat belts IMMI-PER4MAX, (3) 4-Point Restraints, (2) for squad bench attendants, (1) for CPR seat attendant, (2) lap restraints for squad bench patient.
H .-1 2 I.V. holders, (2) positions, #1 & #3, Cast Products # A20-14 flush mount, polished aluminum.
H .-1 3 Module (interior) access door grab handles, (3) Anti-Microbial 1-1/2" diameter stainless steel satin finish, angled grab handles mounted on module access doors.
H .-1 4 Ceiling grab rail Anti-Microbial, center mounted, stainless steel, satin finish 1-1/2" diameter, 72" length.
H .-1 5 Door sills, (rear), bright stainless steel, w/ramp edge, (side) bright stainless steel sill 1 1/2" x 2 1/2" H .-1 6 Net, Front end of squad bench, 4 ancra fasteners, (1) rachet, Black 1 1/2" webbing H .-1 7 Fire Extinguisher, ABC, 5lb, w/ quick release bracket.
Quantity (2) ship loose.
9000 - HARDWARE - OPTIONS
H . 0 9001 H1 Change:
-Delete under bench seat belt mount
-Replace with above bench seat belt mount
By: David Bakey
1000 -PATIENT HANDLING EQUIPMENT - STANDARD
I .-1 1 Cot fastener, Ferno #185 (Short 86") Stat Trac fastening system. (Center Position) (Compatible with 35A, 35 series, 93 series, and Power Flexx Cots, Cots must be upgraded to StatTrac compatibility.)
Delete. NO COT FASTENER, NO ROUTED FLOOR
745435 Chassis: 0 Quoted By: David Bakey 2/2/2026 Page 17 of 18 37 37 of 395
2/2/2026 745435
VIN Number
Parent Job 3694
Qouted by: Dave Bakey
PSS/Stock Unit
2701 Merced Ave
El Monte, CA 91733
Braxton Peterson 801 977-3961
Braxton Peterson 801-440-4167
2701 Merced Ave
So. El Monte, CA 91733
L
Itemnumber Description
10000 -PATIENT HANDLING EQUIPMENT - OPTIONS
1100 -PAINT, BODY AND GRAPHICS - STANDARD
J . 0 1 An acrylic urethane paint process is required on the module body.
J .-1 2 Emblems, Leader front fenders, rear doors, no smoking labels, ETC. 11000 -PAINT, BODY AND GRAPHICS - OPTIONS
1. Change order received after confirmation but prior to production start: $100 per item plus standard option cost
2. Change Order received after production start: $200 per item plus two times the standard option cost and any additional labor to accommodate the change at $200 per hour
3. Change Order received at delivery: $300 per item plus three times the standard option cost and any additional labor to accommodate the change at $200 per hour.
PLEASE NOTE CHANGE ORDER CHARGES AND FEES:
745435 Chassis: Quoted By: 2/2/2026 Page 18 of 18
38 38 of 395
Stair Chair storage w/
1 1/2" Strap w/
quick connect clip
Inverter, Vacuum pump
Compartment
Streetside Exterior 1
Main O2
Bottle storage
110 V. 20 Amp.
Autoeject
Shoreline
LED Strip lights
(2) per compartment
Red reflector
Amber reflector
Drip rail
Oxygen
Wrench
Spare tire &
Changing Tools
M1
M2 M3
M1 6 5.6 2 1 9.9 5 1 8.3 6 5.0 1 1 7.7 6 C O M P T IN S ID E
W ID T H
IN S ID E
H E IG H T
IN S ID E
D E P T H
C LE A R
O P E N IN G W ID T H
C L E A R O P E N IN G
H E IG H T M2
M3
4 2.6 1 3 0.3 0 1 8.3 3 9.5 1 2 8.0 1
4 0.0 5 3 3.9 3 3 9.5 1 3 0.5 1
Red Marker Lights
w/ Chrome housings
Stainless Steel
Rub Rail
Polished Aluminum
Fender
R R
1 8.3
Whelen 900
Red LED
(W / Flange)
Whelen 900
Clear Scene LED
(W/ Flange)
Intersection light
Whelen 500 Red LED
w/ chrome flange
Whelen 900
Red LED
(W / Flange) AUTOEJECT KUSSMAUL
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
39 39 of 395
2 Back board
storage
Red reflector
Drip rail
Amber reflector
Stainless Steel
Wheel Inserts
Dark Privacy
148" 89"
Curbside Exterior
M4
M5
M6 LED Strip lights
M4 1 2.2 6 1 8.3 1 0.0 8
2 0.3 6 2 6.9 9 1 8.3 1 7.2 6 2 4.7 0
1 6.2 0
C O M P T IN S ID E
W ID T H
IN S ID E
H E IG H T
IN S ID E
D E P T H
C LE A R
O P E N IN G W ID T H
C L E A R O P E N IN G
H E IG H T M5
M6
8 2.4 2 6 2.8 2
4 9.6 4
Red Marker Light
w/ Chrome housing
Stainless Steel
Rub Rail
Polished Aluminum
Fender
(1) Battery
OEM Location
R R
1 1/2" Strap w/
quick connect clip
M7 1 2.9 8 1 8.4 5 1 8.3 1 2.5 1 1 6.2 0
M7
3" Drop for
(2) step entry
(2)Batteries on
slide out tray
Whelen 900
Red LED
(W / Flange)
Whelen 900
Clear Scene LED
(W/ Flange)
Whelen 900
Red LED
(W / Flange)
Intersection light
Whelen 500 Red LED
w/ chrome flange
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
40 40 of 395
Front Exterior 3
Daytime running
Lights
Amber Marker Lights
w/ Chrome housings
(On Body)
LEADER IND. Remote door
release
Siren speakers
R R R
White LED Running
Boards lights
(# 20COCDCD)
R R
Whelen ION T-series
Red Super LED
w/ Clear lenses
w/ Chrome flange
(Steady Burning)
R
Whelen 900
Red LED
(W / Flange)
Whelen 900
White LED
(W / Flange)
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
41 41 of 395
Rear Exterior 4
Exhaust Vent
Mud flaps w/
leader plate
Red reflector
Recessed Cast Products
License plate holder
w/ LED LIcense Plate Lights
Red marker lights
w/ Chrome housings
Red reflector
Dark Privacy Dark Privacy
LL SAE-W-83 SAE-W5-86 SAE-W-83SAE-W5-86 LL SAE-W-83 SAE-W5-86 SAE-W-83SAE-W5-86 SAE-W5-86SAE-W-83 SAE-W5-86SAE-W-83 SAE-W5-86SAE-W-83 SAE-W5-86SAE-W-83 SAE-W-83SAE-W5-86 SAE-W-83SAE-W5-86 SAE-W-83 SAE-W5-86 SAE-W-83 SAE-W5-86 R
A A
R
Style Flip-up Step Bumper
angle corners 30 Degrees
(angle of departure minimum of 10 Degrees)
Whelen 600
Amber LED
Turn signal w/ arrow
Whelen 600 (W / Flange)
Red LED
Stop - Tail
(W / Flange)
Whelen 600
Clear Back Up
(W / Flange)
Whelen 700
Clear Scene LED
(W/ Flange)
Whelen 900
Red LED
(W / Flange) SAE-W-83SAE-W5-86 SAE-W-83SAE-W5-86 SAE-W-83 SAE-W5-86 SAE-W-83 SAE-W5-86 OEM
Back up Camera
Kinequip Red LED
3rd Brake light
Whelen 900
Red LED
(W / Flange)
Whelen 900
Amber LED
(W / Flange)
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
42 42 of 395
WHITE GLOSS
LAMINATE
Hand sanitizer
dispenser
(Surface mount)
LED Strip Lighting
(Inside ALL
compartments)
A6
Locking Drug compartment
W/ 7/8" door lock
O2 Access
A4 plexiglass window
A5
Exhaust
Intake
Gibraltar countertop
A3
A1
A / C Access
w/ filtered A/C intake
Ducted Central
A / C - Heat
Stainless
steel
(3) latex
Glove storage
A2
Positive lach devices
on ALL storage cabites with
plexiglas sliding windows 40 Lbs. 40 Lbs. 40 Lbs. 40 Lbs. 10 Lbs.
IMMI 4 PT Per4Max
Seat belt
Streetside Interior 5
Leader Style
hold down lids
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
43 43 of 395
Wood doors
w/ NON locking
Eberhard slam latch
Wood doors
w/ NON locking
Eberhard slam latch
40 Lbs. 40 Lbs. EVS Attendant seat
sewn on swivel base
w/ 4 - Point restraint
w/ sliding track
w/ Leader logo
LED Strip
Work light
Access to power distribution
w/ Chrome "D" ring locking latch
1 1/2" Threshold
"Liquid stop" Gibraltar
Adjustable shelves
Iluminated
110 V. 12 Volt
Hinged partition wood door
w/ plexiglas sliding windows
w/ Chrome "D" ring Non locking latch
A7
A8 A9
A5 LED Strip lighting 1 1 0 V A C
Bulkhead Interior 6
GROU P
EMERGENCY VEHICLES
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
44 44 of 395
Curbside Interior 7
Digital 15 min.
Re-stocking Timer
A11
Electric door lock switch
(wired to OEM)
LED Strip
Lighting
S / S Antimicrobial
Grab Bar
3/8" Recessed Plexsiglas doors w/
Chrome "D" ring latches
LED Step Well
light
Trash Container
Sharps Container (Red Plexiglass Lid)
Kendall 8507SA
(L # 04-011)
Blue Reflective
3M Diamond Grade
Blue Academy
independence
Upholstery and
Fillers
Stainless Steel
Cargo Net
(Black)
A10 Stainless Steel
5 Lbs. 5 Lbs.
IMMI 4 PT
Per4Max
Seat belts DOMELIGHT(LOW)
O2 Outlet USE NO OIL O X Y G E N
Leader Style
hold down lids
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
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Rear Interior 8
Blue Reflective
3M Diamond Grade
Stainless
Steel Stainless
Steel
Electric door lock switch
(wired to OEM)
S / S Antimicrobial
Grab Bars
AM-FM Radio speakers
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
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Cab Console. 9
A12
Vent
Cup holders
Adjustable open
map box slots
Customer Radio
Location
10-3/4"
14"
12" 5" Flat Surface
for MDT Bracket
Two-Way Radio Power
Terminal Strip
(Inside Console)
Combination USB Port
Type A 3.0 / Type C 4.0
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
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EMERGENCY VEHICLES
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Switch Panel 10
O2 outlet
Time manager
(Clock)
12 V.
Outlet
Iluminated
110 V. Outlet
A13
LED Strip
Lighting Solid Gibraltar
SSCOR Tray
Regulator
U S E N O O IL O X Y G E N
Elapsed Timer Start Stop Clock Timer 1 Minute
2 Minute
5 Minute
10 Minute
10:52 Emergency Time Manager U S E N O O IL O X Y G E N SS COR
RE GUL ATO R V ACUUM
7 0 0 6 0 0 5 0 0 4 0 0 3 0 0
0 2 0 0
10 0 B
K
E
IHG
SWITCHES
A= PATIENT DOME ON/OFF 3 WAY - LIT AMBER LED
B= DOME HI-LO, ON/ON - LIT WHITE LED
C= BLANK
D= EXHAUST VENT ON/OFF - LIT AMBER LED
E= ELECT SUCTION ON/OFF - LIT AMBER LED
F= BLANK
G= PATIENT HEAT / A/C ON/OFF 3 WAY - LIT BLUE LED
H= A/C FAN HI-LO ON/ON - LIT WHITE LED
I= A/C HEAT/COOL - LIT RED / BLUE LED
J= COMPARTMENT LIGHTS - LIT WHITE LED
K= WORK LIGHT - LIT WHITE LED
L= VANNER INVERTER - LIT RED LED
SSCOR Suction
w/ S/S canister holder SSCOR 1 10 V AC
Combination USB Port
Type A 3.0 / Type C 4.0
A F
J K
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
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Trash Container
(Red Plexiglass Lid)
Sharps Container
Kendall 8507SA
(L # 04-011) 10"
34" S/S Sill
Overhead Floor 11
A15
Sharps Container
Turn latch
NO COT FASTENER INSTALLED
DO NO ROUTE FLOOR
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
PSS_Stock 94 / 148 2024 94" X 148" Module on Ford E350 138" WB chassis, 72" Headroom
EMERGENCY VEHICLES
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Cab Ceiling Interior. 12
72" S / S Anti - microbial
Grab Bar
IV Hook
Position 3
IV Hook
Position 1
(8) Whelen LED Dome Lights
(High - Low)
(2) Antenna Leads
w/ Cover plates
A14
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
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EMERGENCY VEHICLES
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Overhead console & Sw's 13
ON WHELEN
HF MAN WAIL PA YELP RAD PIER
POWER FUNCTION
SWITCHES
A. PRI- SEC- LIT RED/ AMBER LED
(SIREN ACTIVATED PRIMARY ONLY)
B. HEAD LIGHT FLASER -LIT CLEAR LED
C. BLANK
D. BLANK
E. BLANK
F. BACK UP ALARM-RESET TYPE-MOM. ON (NON LIT)
G. LEFT SCENE WHITE LIT LED
H. REAR SCENE WHITE LIT LED
I. RIGHT SCENE WHITE LIT LED
J. PATIENT DOME 3-WAY - LIT AMBER LED
K. PATIENT HEAT A/C 3-WAY - LIT BLUE LED
L. BLANK
M. MOD. DISCONNECT - GREEN LIT LED
N. DIMMER KNOB
O. EMERGENCY START,ON-OFF GUARDED (NON LIT)
PILOT LIGHTS
P. PILOT LIGHT - EMERGENCY START RED LED
Q. PILOT LIGHT - MASTER ON GREEN LED
R. PILOT LIGHT - DOOR OPEN RED LED
S. PILOT LIGHT - COMP. OPEN AMBER LED
T. PILOT LIGHT - PARKING BRAKE RED LED
U. PILOT LIGHT - LOW VOLTAGE AMBER LED
Whelen 295
HFSA -7 Ca. Spec.
w/ Remote Amp.
Digital smart
Amp. Meter Digital smart
Volt Meter
w/ Low voltage
alarm
Map lights
Red / White LED
EMERGENCY VEHICLES
AMPS
EMERGENCY VEHICLES
AMPS
A B F G H I J K O
PQ SR
U
T M
N
Emergency
Start Re-Set
VIEW: Dwn. By: Jorge M. Date: July - 2024 LENote: All dimensions are approximate and subject to change.
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EMERGENCY VEHICLES
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February 19, 2026
RE – City of Laguna Beach, CA - Municipal Finance Quote REV Financial Services is pleased to present the following Municipal Finance Proposal described below:
PROPOSAL:
Customer:
PROPERTY:
EXPIRATION:
FINANCE QUOTE: Finance Amount Rate Payments Factor Pmts / Year Term Adv. / Arr. $0 Down $ 314,988.71 4.97% 54,377.12 $ 0.17263197 1 7 years Arrears Leader Ambulance & Radio Equipment
Financing to Close by March 30, 2026
City of Laguna Beach, CA
*** Please see table on page 2 for Payment due dates
FINANCING: This is a tax-exempt, municipal government lease purchase with the title to the property passing to Lessee.
This is a net lease under which all costs, including insurance, maintenance, and taxes, are paid by Lessee for the term of the lease. Rates assume municipal/bank qualified. Due to market conditions, Rates subject to change.
NOTES: Application, current budget, and 3 years Audited Financial Statement are required with Signed Proposal for Credit Review. Rate subject to change due to market fluctuation. Annual Payments start 1 year after signed financing contract. Please see page 2 for sample payment tables. Lessor to be named when credit approved.
APPROVAL: This proposal, until credit is approved, serves as a quotation, not a commitment by Lessor to provide credit or property. Lessor acceptance of this Proposal is subject to credit; collateral and essential use review and approval by Lessor. The interest rate quoted herein assumes that the interest component of the Payments is exempt from federal income tax. Lessor will provide a taxable financing proposal if it is determined that the financing will not qualify for tax-exempt interest rates. The financing contemplated by this proposal is subject to the execution and delivery of all appropriate documents (in form and substance satisfactory to Lessor), including without limitation, to the extent applicable, the Master Lease Agreement, any Schedule, financing statements, legal opinion or other documents or agreements reasonably required by Lessor.
Thank you for the opportunity to present this proposal. If you have any questions, please contact me at my number or e-mail address below.
Sincerely,
Todd Stevenson
Manager of Dealer Credit and Sales Support
REV Financial Services
303-746-0449
[email protected]
Proposal Acceptance:
Option: 7 years - Please see tables on Page 2
Signed: ______________________________________
Name: _______________________________________
Title: ________________________________________
Date: ________________________________________
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7 year Sample Payment Table
Assumes Contract Acceptance & Funding on 3/15/2026
Please note the dates on the table
Year Date Amount 1 3/15/2027 $ 54,377.12 2 3/15/2028 $ 54,377.12 3 3/15/2029 $ 54,377.12 4 3/15/2030 $ 54,377.12 5 3/15/2031 $ 54,377.12 6 3/15/2032 $ 54,377.12 7 3/15/2033 $ 54,377.12 $0 Down Options Below:
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STAFF REPORT
Meeting Date:
April 14, 2026
BUSINESS
20 SUBJECT: FISCAL YEAR 2025/26 MID YEAR BUDGET UPDATE BUDGET ADJUSTMENTS,
AND ADOPTION OF SALARY AND MANAGEMENT RESOLUTION
RECOMMENDATIONS: It is recommended that the City Council:
1. Approve the proposed Fiscal Year 2025-26 mid-year budget adjustments summarized in Attachment 1;
2. Approve an increase to the General Fund Contingency Reserve from $17,300,000 to $18,500,000, to maintain the City Council’s 20% target balance;
3. Approve the creation of three new Special Revenue Funds (Measure M; Road Rehabilitation Account, and Senior Mobility Transportation Program);
4. Approve the purchase (instead of leasing) of four vehicles included in the City’s current vehicle replacement plan;
5. Adopt the amended salary schedules for Fiscal Year 2025-26 by adopting the Resolution titled, "A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA BEACH, CALIFORNIA, SETTING PAY RANGES FOR CITY EMPLOYEES," which updated the compensation for employees;
6. Adopt the Resolution titled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH, CALIFORNIA, RELATING TO CONDITIONS OF EMPLOYMENT
POLICIES AND BENEFITS FOR UNREPRESENTED EXECUTIVE MANAGEMENT AND MANAGEMENT EMPLOYEES;" and
7. Find that the recommended action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.
SUMMARY OF THE MATTER
This report presents the Fiscal Year 2025/26 Mid-Year Budget Update and recommends that the City Council approve a series of budget adjustments and related actions to address updated revenue projections and maintain the City’s fiscal stability. We acknowledge that April 14, 2026 is not “mid-year.” With a full team in our Finance Department, we hope that mid-year FY 2026-27 is in January or February 2027.
Following the close of Fiscal Year 2024/25, the General Fund available balance was $959,773, approximately $462,159 lower than originally projected, primarily due to lower-than-anticipated sales and transient occupancy tax (TOT) revenues during FY 2024-25. In addition, updated projections for Fiscal Year 2025/26 reflect continued softness in sales tax revenues due to ongoing commercial vacancies. 1 of 462
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To address these conditions, staff is recommending targeted budget adjustments, including updated revenue estimates and expenditure changes, resulting in an overall increase of approximately $4.5 million in revenues and a decrease of approximately $5.8 million in expenditure across all City funds. Within the General Fund, these adjustments produce a net positive impact and support maintaining fiscal balance.
The report also recommends increasing the General Fund contingency reserve to $18,500,000 to maintain the City Council’s 20% reserve policy, establishing three new Special Revenue Funds, and approving the purchase of replacement vehicles and two wave runners. Additionally, the City Council is asked to adopt resolutions that update the Fiscal Year 2025/26 salary schedule and formalize existing employment policies and benefits for unrepresented executive management and management employees. The proposed resolution does not modify existing compensation or benefits; instead, it incorporates previously referenced provisions into a single document to improve clarity and transparency.
DISCUSSION
The information included in Attachments 1-6 to this staff report includes revenue, expenditure, and fund balance information for all City funds. Attachment 1 provides a detailed explanation for each budget adjustment that is proposed.
General Fund (110/#112)
When the City’s budget was adopted in June 2025, the General Fund’s fund balance, was projected to be $1.4 million as of June 30, 2025. Based on final audit results, the actual available fund balance was $959,773, which is $462,159 less than we anticipated, primarily based on lower-than-anticipated transient occupancy tax (TOT) and sales tax revenues.
The Revenue Side. The General Fund collects approximately 72% of total General Fund revenues from its three primary sources: property taxes, sales taxes, and transient occupancy taxes. Sales tax revenues have declined due to multiple things, including commercial vacancies in 24/25. While increased occupancy of downtown commercial spaces has occurred since then and is expected to support higher in-person spending, overall sales tax performance continues to be impacted by broader trends of changes to how and where consumers spend. Based on updated estimates from the City’s consultant HdL Companies, sales tax revenues are recommended to be reduced by $145,665.
In contrast, TOT revenue is trending upward compared to Fiscal Year 2024/25, reflecting the reopening of hotels and increased revenue from short-term lodging businesses. As a result, staff is recommending increasing the estimated TOT revenue of $510,000 within FY 2025/26. The outlook for transient occupancy tax revenue is expected to increase next fiscal year as well, although the increase will be more modest as another hotel is expected to close for renovations as soon as September 2026. Property tax revenue remains stable and is projected to increase by 5% from the Fiscal Year 2024/25 actual revenue. An adjustment is proposed to increase the City’s estimated property tax revenue by $139,015.
In total, the staff is recommending increasing estimated General Fund revenues by $870,742, including a transfer of $200,000 from the Capital Improvement Fund. 2 of 462
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A summary of all the General Fund revenue adjustments is presented below.
The Expenditure Side. Staff is requesting additional appropriations in the General Fund of $170,635.
These adjustments are limited to increased revenues resulting in increased contract costs and additional requests that were missed, and therefore not included in the adopted budget. In addition, the personnel costs for a Records Coordinator position is being transferred from the Community Development Department to the City Clerk’s Office, an adjustment of $112,000. Finally, an adjustment is proposed to reallocate $510,000 of funding from the General Fund to the Cultural Environmental Stewardship Fund (#149) pursuant to the Laguna Beach Tourism Marketing District (LBTMD) Management Plan approved in June 2025.
As an example of some of these changes, the proposed adjustments include a revenue increase for business license taxes revenue, resulting in corresponding increases in contract costs. The City contracts the business license administration process with HdL with fees based on the volume of applications and renewals processed. As a result, contract costs increase as revenue increase and would similarly decrease if business license activity declines.
A summary of the General Fund expenditures, including the impact of proposed budget adjustments, is presented in the table below:
Description
FY 2025/26
Current
Budget
Proposed
Adjustments
FY 2025/26 MidYear Budget% of
Total
Property Taxes 55,850,200$ 139,015$ 55,989,215$ 55.9%
Sales Taxes 6,620,000 (145,665) 6,474,335 6.5%
Transient Occupancy Taxes 9,830,000 470,000 10,300,000 10.3% Other Taxes 2,910,000 488,000 3,398,000 3.4%
Licenses and Permits 3,545,000 (241,500) 3,303,500 3.3% Charges for Services 11,146,600 217,092 11,363,692 11.4% Use of Money & Property 3,858,000 (60,100) 3,797,900 3.8% Other Revenue 3,182,305 (196,100) 2,986,205 3.0%
Transfers from Other Funds 2,300,000 200,000 2,500,000 2.5% Total General Fund Revenues 99,242,105$ 870,742$ 100,112,847$ 100.0% 3 of 462
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The net impact of the proposed adjustments is an increase in General Fund available fund balance of $700,107.
We note in the above exhibits that the City’s General Fund expenditures (now at $104.7 M) show as roughly $4.6M higher than our General Fund revenues (proposed now at $100.1 M). This is because the $104.7 M in General Fund expenditures includes $5.1 M in budget carryovers from the Fiscal Year 2024/25 budget that were approved by the City Council on November 18, 2025. These items represent amounts that were included in last year’s budget for projects that were not complete by June 30, 2025 but later were finished.
Therefore, funding was set aside for this amount in last year’s budget – these carryovers are not funded from the $100.1 M in General Fund revenue expected this year. More simply, the $100.1 M in General Fund revenues will be used to fund $99.6 M in General Fund expenditures as shown in the chart below.
That noted, we still are concerned about the overall trend, with costs rising and two major revenue sources remaining flat or turning downward. Layer upon that the economic uncertainty triggered last year by tariffs and this year by the war in Iran and its effect on fuel prices (which can affect everything from TOT when international air travel falls, or direct costs of fueling our police and transit vehicles), makes us Description
FY 2025/26
Current
Budget *
Proposed
Adjustments
FY 2025/26 MidYear Budget% of
Total
General Government 2,889,200$ 112,000$ 3,001,200$ 2.9%
City Manager 15,078,550 (473,365) 14,605,185 13.9%
Administrative Services 4,584,050 114,000 4,698,050 4.5% Police 24,732,750 20,000 24,752,750 23.6%
Fire 19,894,305 - 19,894,305 19.0%
Marine Safety 4,741,850 - 4,741,850 4.5%
Public Works 17,256,850 - 17,256,850 16.5%
Transit & Community Services 3,450,500 - 3,450,500 3.3% Community Development 11,777,850 (112,000) 11,665,850 11.1% Transfers to Other Funds 150,000 510,000 660,000 0.6%
Total General Fund Expenditures 104,555,905$ 170,635$ 104,726,540$ 100.0% * Includes $5,084,750 in carryover appropriations from Fiscal Year 2024/25.
Description
FY 2025/26 MidYear Budget
General Fund Expenditures 104,726,540$
Less: Fiscal Year 2024/25 Carryover Funding (5,084,750) Expenditures funded with Fiscal Year 2025/26 revenues 99,641,790$ 4 of 462
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even more concerned. This necessitates a significant change in how the City needs to approach its shortand medium-term expenditures in FY 2026-27 and beyond, regardless of whether new revenues are made available by the voters.
General Fund Reserve Target. Laguna Beach Municipal Code Section 3.24.030 sets a General Fund contingency reserve of 10% of General Fund expenditures. In addition, City Council has made the policy decision through the budget adoption process to set aside an additional 10% of General Fund expenditures, increasing the total target reserve balance to 20% of General Fund expenditures.
The General Fund contingency reserve was $17,300,000 when the budget was adopted on June 24, 2025.
Based on the revised Fiscal Year 2025/26 expenditures, the reserve requirement should be increased by at least $1.0 million to $18.3 million to maintain the 20% target (Attachment 7). However, staff’s recommendation is to increase the reserve by $1.2 million (resulting in setting the amount at $18.5 million) to provide slightly more additional stability in the General Fund should sales tax revenue continue to flatten or decline.
Staff recommends City Council authority to the transfer of $1.3 million from the General Fund’s available fund balance to the contingency reserve. If approved, the General Fund’s contingency reserve would be $18.4 million and the available fund balance in the General Fund is expected to be $134,895 by June 30, 2026 (Attachment 6).
Capital Improvement Fund (116/616)
Based on actual revenue collected through March, TOT revenue that is collected in the Capital Improvement Fund is 6% less than the revenue collected for the same period last year. An adjustment is proposed to reduce the current year revenue estimate by $240,000. In addition, an adjustment is proposed to reduce revenue from vehicle code fines by $145,000 based on the Fiscal Year 2024/25 actual of $4,041.
These revenue reductions are offset by an increase of $459,000 in revenue from parking citations and other fines. Parking citation revenue is on track to reach at least $1 million in Fiscal Year 2025/26 – which is significant and consistent with our efforts to limit poor parking practices sometimes by our region’s beachgoers. As a result, the net impact of these adjustments is a total revenue increase of $74,000 in this fund.
Insurance and Benefits Internal Service Fund (126)
The Insurance and Benefits Fund reported a deficit fund balance of $6.6 million as of June 30, 2025, primarily due to the significant number of workers compensation and general liability insurance claims.
Actual claims expenditures were $6.5 million, which was $4.2 million more than the estimated amount.
While the Fund has sufficient cash on hand to cover approximately $10 million in outstanding claim reserves as those claims are paid over time, the existing deficit reflects a structural funding imbalance. As a result, cash reserves will need to be replenished via a thoughtful plan. This effort is expected to impact 5 of 462
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future General Fund budgets. For the immediate future, we recommend a transfer from the Parking Fund of $1 million to partially offset the deficit.
Vehicle Replacement Fund (128)
The current budget currently reflects leasing certain electric vehicles for four (4) replacements at $7,500 per vehicle per year. However, since the budget was adopted, Public Works staff learned that some vendors do not directly lease vehicles to government agencies. Staff evaluated third-party leasing options through NCL Government Capital, which holds a Sourcewell contract, to offer financing/leasing solutions to municipal entities. NCL provided a Fair Market Value Lease proposal for certain units at $4,181.00/month for 60 months (first payment at commencement) and a Tax-Exempt Municipal Lease (lease-to-own) option at $4,293.62/month for 60 months, or approximately $113/month more to own and retain equity and resale value. Based on these proposals, Public Works staff concluded the third-party leasing approach is not costeffective compared to purchasing replacement hybrid vehicles. The City has sufficient funds available in the current budget to support the purchase of the four (4) replacement hybrid units (including upfitting), and staff is requesting approval to apply these available funding sources to complete the acquisition in lieu of leasing.
In addition, an adjustment of $40,000 is requested to purchase replacements for two wave runners for the Marine Safety Department to have them in preparation for the upcoming summer season.
Disaster Contingency Fund (#140)
On December 9, 2026, the City Council appropriated $115,905.40 from the Disaster Contingency Fund to reimburse the Orange County Fire Authority for costs associated for the Rancho Fire incident that occurred in July 2025. City Council Resolution No. 23.045 requires the City to use its best efforts to replenish the fund within 36 months of the expenditure.
The proposed budget adjustments included in Attachment 1 include a transfer from the Parking Fund to the Disaster Contingency Fund for this replenishment.
Animal Shelter Donation Fund (#142)
On November 18, 2025, the City Council authorized the creation of a new fund to track donations received for the City’s Animal Shelter. In addition, a budget carryover of $1,497,850 was approved to carryover the appropriations related to these donations. The proposed budget adjustments recommend eliminating this budget line item since there is not a spending plan identified in FY 2025-26 for these funds. As a result, these funds will be available for future appropriation by the City Council.
New Special Revenue Funds
The City currently records revenues and expenditures received from the Orange County Transportation Authority (OCTA) for Measure M sales tax and revenues from the State of California for the Road Rehabilitation Maintenance Account (SB-1) in the City’s Gas Tax Fund. In addition, the City records the Senior Mobility Transportation grant funds received from OCTA in the Transit Fund. Staff is recommending that the City Council approve the creation of the following new funds to help streamline 6 of 462
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and improve the reporting process to OCTA and the State: Measure M (#201/601); Road Maintenance and Rehabilitation Account (RMRA) Fund (#202/602); and Senior Mobility Transportation Fund (#203).
Proposed Adjustments to Wastewater Capital Improvement Funds (Attachment 5) The Public Works Department identified five CIP projects that can be closed. In addition, an adjustment is proposed to reduce the funding for the South Orange County Wastewater Authority (SOCWA) from $11.1 million to $4.1 million based on updated information received from SOCWA (Attachment 5). Overall, the revenue received from wastewater service charges has been sufficient to cover operating expenses, but not capital improvement program funding. The City has funded wastewater projects with I-Bank loans. Staff is working with a consultant to develop a wastewater rate study. The project is expected to be completed during Fiscal Year 2026/27.
Revised Salary Schedule for Fiscal Year 2025/26 (Attachment 8) The City’s salary schedule has been amended to reflect labor agreements that the City Council approved after the Fiscal Year 2025/26 salary schedule was approved, as detailed below:
Salary Range Adjustments (per current MOUs):
• 2% salary range adjustment for Laguna Beach Marine Safety Association (LBMSA) (in accordance with current MOU)
• 4% salary range adjustment for Laguna Beach Police Employees Association (LBPEA) for Sworn (in accordance with current MOU)
• 3% salary range adjustment for LBPEA for Professional staff (in accordance with current MOU)
• 3.5% salary range adjustment for LBPEA for Dispatch (in accordance with current MOU) • 3% salary range adjustment for Police Part Time/ Full Time Equivalent for Professional staff
• 3.5% salary range adjustment for Police Part Time/ Full Time Equivalent for Dispatch Classification Updates:
• Update classification title of Supervisor of Support Services to Support Services Supervisor
• Update classification title of Kennel Manager to Animal Shelter Manager and move from Police 84 to MGMT 3040
• Move classification of Wastewater mechanical & Facilities Supervisor from MISC 122 to MISC 128
• Move classification of Senior Community Services Coordinator from HRLY 685 to HRLY 705
• Changes to HR positions:
o Add Director of Administrative Services classification to MGMT 2050 o Add Human Resources & Risk Manager classification to MGMT 2030 o Remove Director of Human Resources & Risk Management classification 7 of 462
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Position Updates:
• One Planning Technician position was reclassified to an Assistant Planner position. • The Finance Director position was reclassified to Administrative Services Director due to a reorganization of the City which resulted in the consolidation of the Finance and Human Resources Departments into one Administrative Services Department. • The cost impact of both of these reclassifications will be absorbed by the Administrative Services and Community Development Department’s existing personnel budgets.
Unrepresented Executive Management and Management Employees (Attachment 9) The proposed Management Resolution (Attachment) consolidates and incorporates existing employment policies and benefits into a single, comprehensive document to improve transparency and administrative clarity. This approach also facilitates external agency review, including by CalPERS, by providing a centralized reference for compensation elements that may be subject to retirement benefit calculations. The resolution does not modify or add to existing management compensation or benefits.
FINANCIAL ANALYSIS
The fiscal impact of the proposed budget adjustments is summarized in the “Net Impact to Available Fund Balance” column on Attachment 1.
ENVIRONMENTAL ANALYSIS
The recommended action consists of the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and therefore does not constitute a “project” within the meaning of the California Environmental Quality Act. (Public Resources Code Section 21065; 14 CCR Section 15378(b)(4).). Here, amendments to the City’s Financial Guidelines and Budgeting Procedures is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.
Therefore, the recommendation action is not a project within the meaning of CEQA.
ATTACHMENTS
1. Proposed Budget Amendments (Pgs. 10-13)
2. Revenue Detail-Major Funds (Pgs. 14-18)
3. Expenditure Detail-Major Funds (Pgs. 19-22)
4. Revenue & Expenditure Summary-Other Funds (Pg. 23)
5. Capital Improvement Program Summary (Pgs. 24-26)
6. Fund Balances by Fund (Pgs. 27-30)
7. General Fund Contingency Reserve Calculation (Pg. 31)
8. Resolution Approving Employee Salary Schedule (Pgs. 32-50)
9. Resolution Approving Employment Policies and Benefits for Unrepresented Executive Management and Management Employees (Pgs. 51-66)
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Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Director of
Administrative Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Michelle Bannigan, Director of Administrative
Services
Dave Kiff, City Manager
Gavin Curran, Assistant City Manager
Mark McAvoy, Director of Public Works and Utilities
Brittany Fernandez, Human Resources Analyst
Jane Abzug, Assistant City Attorney
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Net Impact
to Available
Revenue Expenditure Fund
No. Description Adjustments Adjustments Balance
GENERAL FUND #101
1 Adjust property tax revenue based on actual revenue collected through March 2026 $ 139,015
2 Adjust sales tax revenue based on revised estimate provided by City's consultant, HdL Companies (145,665)
3 Adjust transient occupancy tax and short term lodging revenue based on actual revenue collected through March 2026 510,000
4 Adjust business license tax revenues based on Fiscal Year 2024/25 actual activity and current activity through March 2026; offset by additional contracted services to HdL Companies 50,000 80,000
5 Adjust cable TV and electricity franchise fee revenues based on Fiscal Year 2024/25 results and current activity through March 2026 (140,000) 6 Adjust trash franchise fee revenues based on Fiscal Year 2024/25 results with a full fiscal year of activity with new solid waste agreement. This increase is offset by the elimination of solid waste contractual revenue that is no longer collected under the new agreement. 408,000
7 Adjust license and permit fee revenues based on actual revenue collected through March 2026 (261,500)
8 Adjust alarm permit fee revenues based on actual revenue collected through March 2026; offset by contractual services to third party payment provider not included in original budget 20,000 20,000
9 Adjust facility rental revenues based on Fiscal Year 2024/25 actual activity and current activity through March 2026 (60,100)
10 Adjust fire inspection fee revenues based on Fiscal Year 2024/25 actual activity and current activity through March 2026 120,000 11 Adjust revenue from lifeguard services for private beaches revenues based on Fiscal Year 2024/25 actual activity and current activity through March 2026 65,000 12 Adjust other current charges for services revenues based on actual activity through March 2026 32,092
13 Adjust miscellaneous income from jail advertising and other revenues based on Fiscal Year 2024/24 activity and actual revenue collected through March 2026 (96,500)
14 Reallocate animal shelter donation revenue to new fund (25,000) Other miscellaneous revenue adjustments 25,400 15
16 Public Safety Records Management project (prior year funding was not carried over in error) 51,635
Funding for Cross Cultural Task Force 30,000 17
Eliminate City Manager Residency Incentive (not applicable) (15,000) 18 19 Subscription and implementation costs for cash forecasting module 19,000 20 Funding for Planet Bids (procurement software) not included in adopted budget 15,000
21 Transfer from Capital Improvement Fund to increase the General Fund contingency reserve 200,000
TOTAL GENERAL FUND 870,742 170,635 700,107
CITY OF LAGUNA BEACH
PROPOSED BUDGET ADJUSTMENTS
FISCAL YEAR 2025/26