Agenda packet — Laguna Woods City Council, February 9, 2022 (part 1 of 4)

CITY of LAGUNA WOODS

CITY COUNCIL
AGENDA
Adjourned Regular Meeting
Wednesday, February 9, 2022
2:00 p.m.

Laguna Woods City Hall
24264 El Toro Road
Laguna Woods, California 92637
Cynthia Conners
Mayor Pro Tem
Noel Hatch
Councilmember
Carol Moore
Mayor
Shari L. Horne
Councilmember
Ed H. Tao
Councilmember
Welcome to a meeting of the Laguna Woods City Council!
This meeting may be recorded, televised, and made publicly available.

Public Comments: Persons wishing to address the City Council are requested to complete and submit a speaker card to City staff. Speaker cards are available near the entrance to the meeting location. Persons wishing to address the City Council on an item appearing on this agenda will be called upon at the appropriate time during the item’s consideration.

Persons wishing to address the City Council on an item not appearing on the agenda will be called upon during the “Public Comments” item. Persons who do not wish to submit a Speaker Card, or who wish to remain anonymous, may indicate their desire to speak from the floor. Speakers are requested, but not required, to identify themselves.

Americans with Disabilities Act (ADA): It is the intention of the City to comply with the ADA. If you need assistance to participate in this meeting, please contact either the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535 or the California Relay Service at (800) 735-2929/TTY (800) 735-2922. The City requests at least two business days’ notice in order to effectively facilitate the provision of reasonable accommodations.

Laguna Woods City Council Agenda  02/09/2022 Adjourned Regular Page 3 of 8 NOVEL CORONAVIRUS (COVID-19) NOTICE
Please exercise caution when attending City Council meetings. If you attend this meeting, please abide by all applicable state and local public health orders.

OPTIONS FOR PUBLIC COMMENTS

1. Attend the meeting in-person.

2. Submit public comments in writing. Written public comments may be submitted via email ([email protected]) or by mail (Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, CA 92637), provided that they are received by the City prior to 2:00 p.m. on the day of the meeting.

Written public comments may be read or summarized to the City Council at the meeting, and parties submitting comments should be aware that their email addresses and any information submitted may be disclosed or become a matter of public record. No party should expect privacy of such information.

3. Make public comments by telephone. Dial (669) 900-6833. When prompted enter the following meeting ID: 896 6195 0342 followed by pound (#) and the following meeting passcode: 406159 followed by pound (#). When an item you wish to comment on is discussed, press *9 on your telephone to raise your hand. When it is your turn, you will be unmuted and able to speak.

Please note that your telephone number will be visible to the City. No party should expect privacy of such information.

4. Make public comments by computer.
• Visit www.zoom.us
• Click on “Join a Meeting” toward the top right of the webpage • Enter the following meeting ID: 896 6195 0342
• Open the Zoom application following the on-screen prompts • Enter the following meeting password: 406159
• Enter a name and email address as required by Zoom
When an item you wish to comment on is discussed, click on “Raise Hand.” When it is your turn, you will be unmuted and able to speak. Please note that information you enter into Zoom will be visible to the City. No party should expect privacy of such information.

Page 4 of 8 ends

I. CALL TO ORDER
Introductory Note: Members of the public wishing to address the City Council on items appearing on this agenda are advised indicate their interest in doing so at the time an item is considered by notifying City staff if present in-person, pressing *9 on their telephone if participating by telephone, or clicking on “Raise Hand” if participating by computer via Zoom. Members of the public wishing to address the City Council on items not appearing on this agenda may do so during Item V.

II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. PRESENTATIONS AND CEREMONIAL MATTERS

4.1 Recognition – Black History Month
Recommendation: Recognize Black History Month.

4.2 Recognition – Lunar New Year
Recommendation: Recognize Lunar New Year.

V. PUBLIC COMMENTS ON NON-AGENDA ITEMS
About Public Comments on Non-Agenda Items: This is the time and place for members of the public to address the City Council on items not appearing on this agenda. To indicate interest, please notify City staff if present in-person, press *9 on your telephone if participating by telephone, or click on “Raise Hand” if participating by computer via Zoom. Pursuant to state law, the City Council is unable to take action on such items, but may engage in brief discussion, provide direction to City staff, or schedule items for consideration at future meetings.

VI. CONSENT CALENDAR
About the Consent Calendar: All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council, City staff, or member of the public requests that specific items be removed from the Consent Calendar for separate discussion and consideration of action.

6.1 Teleconferencing for Meetings
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
Laguna Woods City Council Agenda  02/09/2022 Adjourned Regular Page 5 of 8

OF LAGUNA WOODS, CALIFORNIA, ALLOWING FOR

THE CONTINUED USE OF TELECONFERENCING FOR
MEETINGS DURING THE COVID-19 STATE OF

EMERGENCY, PURSUANT TO CALIFORNIA ASSEMBLY
BILL 361 (2021-2022)

6.2 Edible Food Recovery Program Services
Recommendation: Approve an assignment agreement assigning the existing agreement with OneOC for edible food recovery program services to Abound Food Care and authorize the Mayor to execute the assignment agreement, subject to approval as to form by the City Attorney.

6.3 Information Technology Services
Recommendation: Approve an amendment of the agreement with Practical Data Solutions for information technology services and authorize the City Manager to execute the amendment, subject to approval as to form by the City Attorney.

6.4 Solid Waste Handling Services
Recommendation: Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, APPROVING A

SECOND AMENDMENT OF THE AGREEMENT WITH

CR&R INCORPORATED FOR SOLID WASTE HANDLING

SERVICES, AND AUTHORIZING ITS EXECUTION

6.5 Waste Disposal Agreement
Recommendation: Authorize the City Manager to give the County of Orange written notice of the City’s irrevocable election to renew the waste disposal agreement with the County of Orange for an additional term of 10 years (July 1, 2025 through June 30, 2035) on the same terms and conditions as are applicable during the term of the existing agreement.

Page 6 of 8 ends

6.6 2021 Pavement Management Relief Funding Program
Recommendation: Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, WHICH CERTIFIES

THAT THE CITY COUNCIL HAS AUTHORIZED THE

PROJECT LIST SUBMITTAL FOR CORONAVIRUS

RESPONSE AND RELIEF SUPPLEMENTAL
APPROPRIATIONS ACT OF 2021 (CRRSAA) FUNDING

THROUGH THE ORANGE COUNTY TRANSPORTATION
AUTHORITY 2021 PAVEMENT MANAGEMENT RELIEF

FUNDING PROGRAM
VII. PUBLIC HEARINGS

7.1 2021‐2029 General Plan Housing Element Update
Recommendation:

1. Receive staff report.

AND

2. Open public hearing.

AND

3. Receive public testimony.

AND

4. Close public hearing.

AND

5. Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY
Laguna Woods City Council Agenda  02/09/2022 Adjourned Regular Page 7 of 8

OF LAGUNA WOODS, CALIFORNIA, ADOPTING A
NEGATIVE DECLARATION FOR THE 2021-2029

GENERAL PLAN HOUSING ELEMENT UPDATE,
ADOPTING THE 2021-2029 GENERAL PLAN HOUSING

ELEMENT UPDATE, AND PROVIDING DIRECTION AND

MAKING FINDINGS RELATED TO ADOPTION OF THE
2021-2029 GENERAL PLAN HOUSING ELEMENT

REQUIRED BY APPLICABLE STATE LAW
VIII. CITY COUNCIL BUSINESS
IX. CITY COUNCIL REPORTS AND COMMENTS
About City Council Comments and Reports: This is the time and place for members of the City Council to provide reports on meetings attended including, but not limited to, meetings of regional boards and entities to which they have been appointed to represent the City and meetings attended at the expense of the City pursuant to California Government Code Section 53232.3. Members of the City Council may also make other comments and announcements.

9.1 Coastal Greenbelt Authority
Mayor Pro Tem Conners; Alternate: Councilmember Tao

9.2 Orange County Fire Authority
Councilmember Hatch

9.3 Orange County Library Advisory Board
Mayor Moore; Alternate: Councilmember Tao

9.4 Orange County Mosquito and Vector Control District
Councilmember Horne

9.5 San Joaquin Hills Transportation Corridor Agency
Mayor Pro Tem Conners; Alternate: Mayor Moore

9.6 South Orange County Watershed Management Area
Mayor Moore; Alternate: Councilmember Hatch

9.7 Other Comments and Reports
X. CLOSED SESSION

Page 8 of 8 ends

XI. CLOSED SESSION REPORT
XII. ADJOURNMENT
Next Regular Meeting: Wednesday, February 16, 2022 at 2 p.m.

Laguna Woods City Hall
24264 El Toro Road, Laguna Woods, California 92637

4.1 RECOGNITION –

BLACK HISTORY MONTH
(NO REPORT)
This page is intentionally blank.

4.2 RECOGNITION –

LUNAR NEW YEAR
(NO REPORT)
This page is intentionally blank.

6.0 CONSENT CALENDAR SUMMARY
This page is intentionally blank.

ITEM 6.0
CC  02-09-2022 ARM Consent Calendar Summary – AR Page 1 of 3 City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: February 9, 2022 Adjourned Regular Meeting
SUBJECT: Consent Calendar Summary
Recommendation
Approve all proposed actions on the February 9, 2022 Consent Calendar by single motion and City Council action.

Background
All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council, staff, or the public requests that specific items be removed from the Consent Calendar for separate discussion and consideration of action.

Summary
The February 9, 2022 Consent Calendar contains the following items:

6.1 Adoption of a resolution allowing for the continued use of teleconferencing for meetings during the COVID-19 State of Emergency, pursuant to California Assembly Bill 361 (2021-2022). The proposed resolution includes the findings required by California Government Code Section 54953(e)(3) for the City Council to continue holding meetings via teleconferencing.

6.2 Approval of an assignment agreement assigning the existing agreement with OneOC for edible food recovery program services to Abound Food Care and authorization for the Mayor to execute the assignment agreement, subject to ITEM 6.0
Consent Calendar Summary – AR Page 2 of 3 CC  02-09-2022 ARM approval as to form by the City Attorney. The City entered into an agreement with OneOC for edible food recovery program services on November 1, 2021. Under that agreement, OneOC, through its fiscally sponsored project Abound Food Care, provides services related to the edible food recovery program requirements set forth in California Senate Bill 1383 (Lara, Chapter 395, Statutes of 2016) and the Senate Bill 1383 regulations adopted by the California Department of Resources Recycling and Recovery. Since entering into the agreement, Abound Food Care has established itself as a separate nonprofit public benefit corporation. Both OneOC and Abound Food Care have requested that the agreement be assigned to Abound Food Care.

6.3 Approval of an amendment of the agreement with Practical Data Solutions for information technology services and authorization for the City Manager to execute the amendment, subject to approval as to form by the City Attorney. The proposed amendment would specify new services and pricing related to cloud backup remote storage, supplies, and equipment.

6.4 Adoption of a resolution approving a second amendment of the agreement with CR&R Incorporated for solid waste handling services, and authorizing its execution. The proposed amendment would add (1) seven-day collection rates for three- and four-yard refuse bins and (2) collection rates for fouryard recycling bins. The proposed amendment would not increase any of the rates previously approved by the City Council.

6.5 Authorization for the City Manager to give the County of Orange written notice of the City’s irrevocable election to renew the waste disposal agreement with the County of Orange for an additional term of 10 years (July 1, 2025 through June 30, 2035) on the same terms and conditions as are applicable during the term of the existing agreement. If the City does not give written notice of its irrevocable election to renew the waste disposal agreement on or before June 30, 2022, the agreement will expire on June 30, 2025. The agreement allows for the continued importation of waste into the County of Orange’s landfill system, which helps to maintain stable waste disposal rates (which affect local solid waste rates) by generating revenue used to maintain the landfill system, preserve funds for landfill closure costs, and mitigate long-term risk and environmental liabilities. The agreement also provides for revenue sharing related to the importation of waste. The most recent revenue sharing payments to the City were $17,167.09 for Fiscal Year 2020-21 and $38,133.44 for Fiscal Year 2019-20. The agreement and ITEM 6.0
CC  02-09-2022 ARM Consent Calendar Summary – AR Page 3 of 3 subsequent amendment are included as attachments A and B, respectively.

6.6 Adoption of a resolution which certifies that the City Council has authorized the project list submittal for Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (CRRSAA) funding through the Orange County Transportation Authority 2021 Pavement Management Relief Funding Program. The City is eligible to receive a one-time payment of $200,000 in federal Coronavirus Response and Relief Supplemental Appropriations Act of 2021 funding through the Orange County Transportation Authority 2021 Pavement Management Relief Funding Program. The proposed resolution is required to obtain the funding. As proposed, the funding would be used to support the Fiscal Year 2022-23 Pavement Management Plan Project. If the recommended action is taken, staff would return to the City Council at a later date with implementing budget adjustments, including reallocation of Road Maintenance & Rehabilitation Program funds currently budgeted for the Fiscal Year 2022-23 Pavement Management Plan Project.

This page is intentionally blank.

6.1 TELECONFERENCING FOR MEETINGS
This page is intentionally blank.

ITEM 6.1
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ALLOWING FOR THE CONTINUED USE OF
TELECONFERENCING FOR MEETINGS DURING THE COVID-19

STATE OF EMERGENCY, PURSUANT TO CALIFORNIA ASSEMBLY
BILL 361 (2021-2022)
WHEREAS, on February 26, 2020, the County of Orange Health Officer declared a Local Health Emergency and the Chairwoman of the Board of Supervisors, acting as the Chair of Emergency Management Council, proclaimed a Local Emergency finding that the imminent and proximate threat to public health from the introduction of COVID-19 created conditions of extreme peril to the safety of persons and property within the territorial limits of Orange County; and WHEREAS, on March 2, 2020, the Orange County Board of Supervisors adopted resolutions No. 20-011 and 20-012 ratifying the Local Health Emergency and Local Emergency, referenced above; and
WHEREAS, on March 4, 2020, the Governor of the State of California proclaimed a State of Emergency in response to COVID-19, pursuant to Section 8625 of the California Emergency Services Act (Article 1 [commencing with Section 8550] of Chapter 7 of Division 1 of Title 2); and WHEREAS, on March 11, 2020 the World Health Organization publicly characterized COVID-19 as a pandemic; and
WHEREAS, on March 13, 2020, the President of the United States declared a National Emergency due to the spread and the effects of COVID-19; and WHEREAS, the State of California (California Department of Industrial Relation’s Division of Occupational Safety and Health’s Revised COVID-19 Prevention Emergency Temporary Standards effective January 14, 2022) and County of Orange Health Officer (Orders and Strong Recommendations revised January 14, 2022) continue to impose or recommend measures to promote social distancing; and
WHEREAS, on March 17, 2020, the Governor of the State of California issued Executive Order N-29-20 that, in an effort to confront and contain COVID19, suspended certain provisions of the Ralph M. Brown Act providing local ITEM 6.1
R 22-XX 2 XX-XX-2022
agencies with greater flexibility to hold meetings via teleconferencing; and WHEREAS, on September 16, 2021, the Governor of the State of California signed Assembly Bill 361 (2020-2022) (“AB 361”) amending the Ralph M. Brown Act providing local agencies with greater flexibility to hold meetings via teleconferencing during a proclaimed state of emergency when: (1) state or local officials have imposed or recommended measures to promote social distancing and/or (2) the legislative body of the local agency has determined, by majority vote, that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees (California Government Code Section 54953(e)(1)); and
WHEREAS, AB 361 was chaptered into law as an urgency statute with its effectiveness waived until October 1, 2021, subject to the Governor of the State of California’s Executive Order N-15-21 dated September 20, 2021; and WHEREAS, in order to continue holding meetings via teleconferencing, AB 361 requires the legislative body of a local agency to periodically make the findings set forth in California Government Code Section 54953(e)(3).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council does hereby find the following:
(A) A state of emergency has been proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 [commencing with Section 8550] of Chapter 7 of Division 1 of Title 2); and
(B) The City Council has reconsidered the circumstances of the state of emergency; and
(C) The state of emergency continues to directly impact the ability of the members of the City Council to meet safely in person; and (D) State and local officials continue to impose or recommend measures to promote social distancing.

ITEM 6.1
R 22-XX 3 XX-XX-2022
SECTION 3. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2022. _______________________________
CAROL MOORE, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 22-XX was duly adopted by the City Council of the City of Laguna Woods at an adjourned regular meeting thereof, held on the XX day of XX 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
This page is intentionally blank.

6.2 EDIBLE FOOD RECOVERY PROGRAM

SERVICES
This page is intentionally blank.

ITEM 6.2
-1-

ASSIGNMENT AGREEMENT
This ASSIGNMENT AGREEMENT (“ASSIGNMENT”) is made and entered into as of February _____ 2022 (“ASSIGNMENT DATE”), by and among OneOC (“ASSIGNOR”), in favor of Abound Food Care (“ASSIGNEE”), with consent of the City of Laguna Woods, a California municipal corporation (“CITY”) with reference to the following facts:

A. CITY and ASSIGNOR entered that certain AGREEMENT FOR CONSULTANT SERVICES (“AGREEMENT”) for edible food recovery program services, dated November 1, 2021, following CITY’s City Council’s approval of the same on October 20, 2021.

B. Per Section 17 of the AGREEMENT, ASSIGNOR “shall not assign or transfer this Agreement or any portion of this AGREEMENT or the performance of any of [ASSIGNOR]’s duties or obligations under this AGREEMENT without the prior written consent of the City Council.”
C. ASSIGNOR desires to assign the AGREEMENT in its entirety and all of ASSIGNOR’s duties and obligations under the AGREEMENT to ASSIGNEE, and ASSIGNEE desires to accept the AGREEMENT in its entirety and all of ASSIGNOR’s duties and obligations under the AGREEMENT.

D. CITY consents to the assignment of the AGREEMENT from ASSIGNOR or ASSIGNEE.

In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. ASSIGNOR irrevocably assigns and transfers to ASSIGNEE from and after the ASSIGNMENT DATE all of ASSIGNOR’s right, title and interest in the AGREEMENT.

2. ASSIGNEE assumes and agrees to perform all terms, covenants and conditions of the AGREEMENT on the part of the ASSIGNOR therein required to be performed arising on or after the ASSIGNMENT DATE subject to the terms of the AGREEMENT.

3. The person or persons executing this ASSIGNMENT on behalf of ASSIGNOR and ASSIGNEE represent and warrant that he/she/they has/have the authority to so execute this ASSIGNMENT and to bind ASSIGNEE to the performance of its obligations under the AGREEMENT.

4. This ASSIGNMENT may be executed in one or more counterparts, each of which will be deemed an original, but all of which constitute one and the same document. An email or similar transmission of a counterpart executed by a party hereto will be regarded as executed by such party for purposes hereof.
[Signatures appear on the following page.]
ITEM 6.2
-2-
IN WITNESS WHEREOF, ASSIGNOR and ASSIGNEE have executed this ASSIGNMENT as of the date first set forth above.

ASSIGNOR:

OneOC
By:_______________________________________
Name: ____________________________________
Title: _____________________________________
ASSIGNEE:

Abound Food Care
By:_______________________________________
Name: ____________________________________
Title: _____________________________________
With consent of the City of Laguna Woods.

CITY OF LAGUNA WOODS:

By _______________________________________
Carol Moore, Mayor
APPROVED AS TO FORM:
__________________________________________
Alisha Patterson, City Attorney

6.3 INFORMATION TECHNOLOGY SERVICES
This page is intentionally blank.

ITEM 6.3
CLW-Practical Data Solutions – Amendment 2/09/2022

Page 1 of 2 ends

AMENDMENT TO THE

AGREEMENT FOR CONSULTANT SERVICES

BETWEEN THE

CITY OF LAGUNA WOODS
AND

PRACTICAL DATA SOLUTIONS

FOR INFORMATION TECHNOLOGY SERVICES
This AMENDMENT of the AGREEMENT FOR CONSULTANT SERVICES ("AGREEMENT") that was approved by the City Council on June 28, 2017, by and among the City of Laguna Woods, a California municipal corporation ("CITY") and Practical Data Solutions ("CONSULTANT"), is made and entered into this ____________________ by and among CITY and CONSULTANT.

WHEREAS, an AMENDMENT of the AGREEMENT has become necessary due to changes in CITY’s information technology configuration and CITY’s request of CONSULTANT to provide additional services; and
WHEREAS, CONSULTANT represents that it is willing and able to provide the services requested by CITY.

NOW THEREFORE, the parties amend the AGREEMENT as follows:

1. CITY and CONSULTANT hereby agree to an AMENDMENT of the AGREEMENT consisting of the modifications shown on page two of this AMENDMENT to EXHIBIT "B" of the AGREEMENT.

IN WITNESS WHEREOF, the parties hereto have caused this AMENDMENT to be executed the day and year first above written.

CITY OF LAGUNA WOODS:

By
Christopher Macon, City Manager
CONSULTANT:

By
John McDermott, Owner
APPROVED AS TO FORM:

Alisha Patterson, City Attorney
ITEM 6.3
CLW-Practical Data Solutions – Amendment 2/09/2022

Page 2 of 2 ends

AMENDMENT TEXT
Section 1 of Exhibit B (“Compensation”) of the AGREEMENT is amended to read as follows (additions shown with underlining and deletions shown with strike through):

Section 1
Description Unit Pricing
24/7 monitoring, patch updates, anti-virus protection, on-site and remote support; Windows 2011 SBS fileserver
Lump
Sum $269 per month
24/7 monitoring, patch updates, anti-virus protection, on-site and remote support; VM Windows 2012 R2 fileserver
Lump
Sum $150 per month
24/7 monitoring, patch updates, anti-virus protection, on-site and remote support; VM Windows 2016 fileserver Each $150 per month Workstations – PC/Mac – Primary Workstations Each $35 per workstation Workstations – PC/Mac – Secondary Workstations Each $15 per workstation Network Support Lump
Sum $69 per month
Printers Lump
Sum $0 per month
Proofpoint Email Spam Support Each $3 per email account Backup Support and Licensing Per
Fileserver $155 per month
Backup Storage Lump
Sum $150 per month
Cloud Backup Remote Storage Per GB $0.39 per month
Supplies and Equipment Up to 10% mark-up over cost
(as evidenced by receipts)

6.4 SOLID WASTE HANDLING SERVICES
This page is intentionally blank.

ITEM 6.4
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, APPROVING A SECOND AMENDMENT OF

THE AGREEMENT WITH CR&R INCORPORATED FOR SOLID

WASTE HANDLING SERVICES, AND AUTHORIZING ITS

EXECUTION
WHEREAS, on October 14, 2021, the City Council approved an exclusive franchise agreement with CR&R Incorporated for solid waste handling services, the term of which shall begin on January 1, 2022 (“Agreement”); and WHEREAS, the City and CR&R Incorporated mutually desire to amend the Agreement as described in Exhibit A attached hereto (“Amendment”); and WHEREAS, California Public Resources Code Section 49300 requires the City Council to approve contracts for the collection and disposal of solid waste by either resolution or ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council hereby determines and certifies that it can be seen with certainty that the Amendment does not have a possibility of having a significant effect on the environment. Therefore, the adoption of the Amendment is a not project subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations.

SECTION 3. The City Council hereby approves the Amendment with CR&R Incorporated, subject to the terms and conditions set forth in this resolution and the Amendment, which is attached hereto as Exhibit A and incorporated herein by reference, and authorizes the Mayor to execute the Amendment, subject to approval as to form by the City Attorney.

SECTION 4. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

ITEM 6.4
R 22-XX 2 XX-XX-2022
PASSED, APPROVED AND ADOPTED on this XX day of XX 2021. _______________________________
CAROL MOORE, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 21-XX was duly adopted by the City Council of the City of Laguna Woods at an adjourned regular meeting thereof, held on the XX day of XX 2021, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk

-1-

SECOND AMENDMENT TO THE AGREEMENT BETWEEN CITY OF

LAGUNA WOODS AND CR&R INCORPORATED FOR SOLID WASTE HANDLING

SERVICES

THIS SECOND AMENDMENT TO THE AGREEMENT BETWEEN CITY OF

LAGUNA WOODS AND CR&R INCORPORATED FOR SOLID WASTE HANDLING SERVICES ("Amendment No. 2") is made and entered into as of ______ day of February, 2022 ("Effective Date"), by and between the CITY OF LAGUNA WOODS ("City"), and CR&R INCORPORATED ("Contractor").

R E C I T A L S
A. On or about January 1, 2022, City and Contractor entered into that certain Agreement between City of Laguna Woods and CR&R Incorporated for Solid Waste Handling Services ("Agreement"), pursuant to which City agreed to provide to Contractor an exclusive franchise for Solid Waste Handling Services within the City of Laguna Woods.

B. Subsequent to the adoption of the Agreement, Contractor requested additions to its pricing for services that were not previously included, including (1) seven-day collection rates for three- and four-yard refuse bins and (2) collection rates for four-yard recycling bins. City and Contractor now wish to update Exhibit A accordingly.

A M E N D M E N T
In consideration of the foregoing Recitals, which are incorporated herein by this reference, and the covenants and promises hereinafter contained, and for good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree to amend the Agreement as follows:

1. Exhibit A. The Agreement is hereby amended to replace, in its entirety, Exhibit A with the attached maximum rate schedule.

2. Effect of Amendment. Except as expressly provided in this Amendment No. 2, all of the terms, conditions, and provisions set forth in the Agreement shall remain in full force and effect.

3. Effective Date. The effective date of this Amendment No. 2 shall be the later of the dates set forth next to the signatures of the parties hereto, after both parties hereto have signed this Amendment No. 2, which date shall be inserted into the preamble to this Amendment No. 2.

4. Representations. The persons executing this Amendment No. 2 on behalf of each party hereto warrant that (a) they are duly authorized to execute this Amendment on behalf of the party for whom they sign, and (b) by so executing this Amendment No. 2, the party for whom they sign is formally bound to the provisions of this Amendment No. 2.

5. Counterparts. This Amendment No. 2 may be executed in counterparts, each of which, when both parties hereto have signed this Amendment No. 2, shall be deemed an original.

ITEM 6.4 - Exhibit A
-2-
IN WITNESS WHEREOF, City and Contractor have caused this instrument to be executed on their behalf by their respective officers or agents herein duly authorized as of the date first written above.

Dated:
“City”

CITY OF LAGUNA WOODS
By:

Carol Moore, Mayor
ATTEST:

By:_______________________________
Yolie Trippy, City Clerk
APPROVED AS TO FORM:

By:_______________________________
Alisha Patterson, City Attorney
Dated:
“Contractor”
CR&R INCORPORATED.

By:

Cliff Ronenberg, Chairman and Chief
Executive Officer
[END OF SIGNATURES]
ITEM 6.4 - Exhibit A
-3-

EXHIBIT A

MAXIMUM RATE SCHEDULE FOR SOLID WASTE HANDLING SERVICES [BEGINS ON FOLLOWING PAGE]
ITEM 6.4 - Exhibit A
-4-
MAXIMUM RATE SCHEDULE FOR YEAR 1 (January 1, 2022 – December 31, 2022) Residential Services Rates
Standard Rate (1Refuse & 1 Recycling) $ 12.73/month plus $4.00/month if customer requests organics cart Extra Pickup $ 4.34/pickup
Additional Refuse Cart $ 7.04/month
Additional Recycling Cart $ 1.52/month
Walk-Out Service Eligible Customers No Charge
Walk-Out Service Other Customers $ 5.83/month
Contaminated Cart Fee $ 28.04/instance
Organics Pail (Purchase) $ 7.50/pail
Monthly Residential Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 53.78 $ 82.01 $ 164.77 $ 219.68 $ 258.14 $ 296.57 N/A 3-Yard Refuse $ 60.16 $ 91.74 $ 184.32 $ 245.73 $ 288.74 $ 331.73 $ 784.12 4-Yard Refuse $ 82.72 $ 120.33 $ 272.43 $ 360.65 $ 448.87 $ 488.80 $ 1,143.53 2-Yard Recycling $ 40.33 $ 61.51 $ 123.58 $ 164.76 $ 193.60 $ 222.42 N/A 3-Yard Recycling $ 45.12 $ 68.80 $ 138.24 $ 184.30 $ 216.55 $ 248.80 N/A 4-Yard Recycling $ 124.14 $ 180.58 $ 408.85 $ 541.25 $ 673.65 $ 733.57 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 37.94 $ 70.19 $ 100.02 $ 128.36 $ 155.63 $ 182.09 N/A Cart - Recycling $ 28.46 $ 52.64 $ 75.01 $ 96.27 $ 116.73 $ 136.57 N/A 2-Yard Organics $ 81.59 $ 124.43 $ 249.96 $ 333.28 $ 391.60 $ 449.90 N/A Cart Organics $ 29.91 $ 45.61 $ 91.66 $ 122.20 $ 143.58 $ 164.96 N/A Residential Bin Rates
Extra Refuse Pickup $ 44.46/pickup
Extra Recycling Pickup $ 33.35/pickup
Extra Bin Exchange $ 57.47/exchange
Contaminated Bin Fee $ 56.07/instance
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 102.86
Temporary 4-Yard Bin N/A
Temporary 3-Yard Bin Rental Beyond 7 Days $ 9.07/day
Relocation Fee (Temporary 3-Yard Bin) $ 77.15
Monthly Commercial Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 107.61 $ 164.11 $ 329.70 $ 439.58 $ 516.53 $ 593.43 N/A 3-Yard Refuse $ 120.39 $ 183.57 $ 368.82 $ 491.71 $ 577.76 $ 663.79 $ 784.12 4-Yard Refuse $ 165.53 $ 240.78 $ 545.13 $ 721.66 $ 898.20 $ 978.09 $ 1,143.53 2-Yard Recycling $ 80.71 $ 123.08 $ 247.27 $ 329.68 $ 387.40 $ 445.07 N/A 3-Yard Recycling $ 90.29 $ 137.68 $ 276.62 $ 368.78 $ 433.32 $ 497.84 N/A 4-Yard Recycling $ 124.14 $ 180.58 $ 408.85 $ 541.25 $ 673.65 $ 733.57 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 37.94 $ 70.19 $ 100.02 $ 128.36 $ 155.63 $ 182.09 N/A Cart - Recycling $ 28.46 $ 52.64 $ 75.01 $ 96.27 $ 116.73 $ 136.57 N/A 2-Yard Organics $ 81.59 $ 124.43 $ 249.96 $ 333.28 $ 391.60 $ 449.90 N/A Cart Organics $ 29.91 $ 45.61 $ 91.66 $ 122.20 $ 143.58 $ 164.96 N/A ITEM 6.4 - Exhibit A
-5-
Commercial Services Rates
Monthly Commercial Green Waste Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week Green Waste Bin $ 80.02 $ 122.03 $ 245.16 $ 326.87 $ 384.07 $ 441.25 N/A Green Waste Cart $ 29.34 $ 44.74 $ 89.89 $ 119.85 $ 140.82 $ 161.79 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Commercial Green Waste Services Rates
Extra Green Waste Pickup $ 60.01/pickup
Contaminated Cart Fee $ 28.74/instance
Contaminated Bin Fee $ 56.07/instance
Roll-off Services Rates (Pull Rate Includes 6 Tons)
Scout/Push Out Services Rates (Per Bin/Per Service)
0 – 25 Feet $ 0.00
26 – 50 Feet $ 20.05
51 – 75 Feet $ 40.09
76 – 100 Feet $ 60.14
Greater than 100 Feet $ 0.20 Per Foot
Monthly Split Bin Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 3-Yard Refuse &
Recycling $ 171.75 $ 218.24 $ 438.48 $ 584.57 $ 686.87 $ 789.15 N/A Extra Refuse Pickup $ 44.46/pickup
Extra Recycling Pickup $ 33.35/pickup
Extra Bin Exchange $ 57.47/exchange
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 102.86
Temporary 4-Yard Bin N/A
Temporary 3-Yard Bin Rental Beyond 7 Days $ 9.07/day
Relocation Fee (Temporary 3-Yard Bin) $ 77.15
Extra Organics Cart Pickup $ 22.43/pickup
Extra Organics Cart Exchange $ 28.74/exchange
Extra Organics Bin Exchange $ 57.19/exchange
Contaminated Bin Fee $ 56.07/instance
Contaminated Cart Fee $ 28.74/instance
Bulky Item Collection (up to four items) $ 57.00/collection Additional Bulky Item (beyond four items) $ 25.00/item
Standard 40-Yard Rental (7 Days) $ 582.22
Low Boy Rental (7 Days) $ 722.22
Compactor $ 669.56/pull
Per Ton Over 6 Tons $ 71.21/ton
Box Rental Beyond 7 Days Without Pull $ 11.04/day
Trip Charge (Dry Run, Relocation) $ 92.08/trip
Contamination Fee $ 58.31/instance
ITEM 6.4 - Exhibit A
-6-
MAXIMUM RATE SCHEDULE FOR YEAR 2 (January 1, 2023 – December 31, 2023) (Rates are subject to CPI adjustment per Section 24)
Residential Services Rates
Standard Rate (1Refuse & 1 Recycling) $ 15.73/month plus $4.00/month if customer requests organics cart Extra Pickup $ 6.51/pickup
Additional Refuse Cart $ 10.56/month
Additional Recycling Cart $ 2.28/month
Walk-Out Service Eligible Customers No Charge
Walk-Out Service Other Customers $ 8.75/month
Contaminated Cart Fee $ 28.04/instance
Organics Pail (Purchase) $ 7.50/pail
Monthly Residential Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 80.67 $ 123.02 $ 247.15 $ 329.52 $ 387.21 $ 444.85 N/A 3-Yard Refuse $ 90.25 $ 137.61 $ 276.48 $ 368.60 $ 433.10 $ 497.59 $ 927.25 4-Yard Refuse $ 124.08 $ 180.49 $ 408.64 $ 540.98 $ 673.31 $ 733.20 $ 1,348.51 2-Yard Recycling $ 60.50 $ 92.27 $ 185.36 $ 247.14 $ 290.41 $ 333.64 N/A 3-Yard Recycling $ 67.68 $ 103.21 $ 207.36 $ 276.45 $ 324.83 $ 373.19 N/A 4-Yard Recycling $ 139.66 $ 203.16 $ 459.95 $ 608.90 $ 757.85 $ 825.26 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 56.91 $ 105.28 $ 150.03 $ 192.54 $ 233.45 $ 273.14 N/A Cart - Recycling $ 42.68 $ 78.96 $ 112.52 $ 144.40 $ 175.09 $ 204.85 N/A 2-Yard Organics $ 122.38 $ 186.64 $ 374.95 $ 499.92 $ 587.40 $ 674.86 N/A Cart Organics $ 44.87 $ 68.42 $ 137.48 $ 183.30 $ 215.37 $ 247.45 N/A Residential Bin Rates
Extra Refuse Pickup $67.68/pickup
Extra Recycling Pickup $50.76/pickup
Extra Bin Exchange $86.21/exchange
Contaminated Bin Fee $56.07/instance
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 105.43
Temporary 4-Yard Bin N/A
Temporary Bin Rental Beyond 7 Days $ 9.30/day
Relocation Fee (Temporary 3-Yard Bin) $ 79.07
Monthly Commercial Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 121.06 $ 184.62 $ 370.91 $ 494.53 $ 581.10 $ 667.61 N/A 3-Yard Refuse $ 135.44 $ 206.51 $ 414.93 $ 553.17 $ 649.98 $ 746.76 $ 927.25 4-Yard Refuse $ 186.22 $ 270.87 $ 613.27 $ 811.87 $ 1,010.47 $ 1,100.35 $ 1,348.51 2-Yard Recycling $ 90.80 $ 138.47 $ 278.18 $ 370.89 $ 435.83 $ 500.71 N/A 3-Yard Recycling $ 101.58 $ 154.89 $ 311.19 $ 414.88 $ 487.48 $ 560.07 N/A 4-Yard Recycling $ 139.66 $ 203.16 $ 459.95 $ 608.90 $ 757.85 $ 825.26 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 85.41 $ 158.00 $ 225.16 $ 288.95 $ 350.35 $ 409.91 N/A Cart - Recycling $ 64.06 $ 118.50 $ 168.87 $ 216.71 $ 262.76 $ 307.43 N/A 2-Yard Organics $ 122.38 $ 186.64 $ 374.95 $ 499.92 $ 587.40 $ 674.86 N/A Cart Organics $ 44.87 $ 68.42 $ 137.48 $ 183.30 $ 215.37 $ 247.45 N/A ITEM 6.4 - Exhibit A
-7-
Commercial Services Rates
Monthly Commercial Green Waste Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week Green Waste Bin $ 120.03 $ 183.05 $ 367.74 $ 490.30 $ 576.11 $ 661.88 N/A Green Waste Cart $ 44.00 $ 67.11 $ 134.84 $ 179.78 $ 211.23 $ 242.69 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Commercial Green Waste Services Rates
Extra Green Waste Pickup $ 90.02/pickup
Contaminated Cart Fee $ 29.46/instance
Contaminated Bin Fee $ 56.07/instance
Roll-off Services Rates (Pull Rate Includes 6 Tons)
Scout/Push Out Services Rates (Per Bin/Per Service)
0 – 25 Feet $ 0.00
26 – 50 Feet $ 20.05
51 – 75 Feet $ 40.09
76 – 100 Feet $ 60.14
Greater than 100 Feet $ 0.20/foot
Monthly Split Bin Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 3-Yard Refuse &
Recycling $ 171.75 $ 218.24 $ 438.48 $ 584.57 $ 686.87 $ 789.15 N/A Extra Refuse Pickup $ 67.68/pickup
Extra Recycling Pickup $ 50.76/pickup
Extra Bin Exchange $ 86.21/exchange
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 105.43
Temporary 4-Yard Bin N/A
Temporary Bin Rental Beyond 7 Days $ 9.30/day
Relocation Fee (Temporary 3-Yard Bin) $ 79.07
Extra Organics Cart Pickup $ 33.65/pickup
Extra Organics Cart Exchange $ 29.46/exchange
Extra Organics Bin Exchange $ 85.79/exchange
Contaminated Bin Fee $ 56.07/instance
Contaminated Cart Fee $ 29.46/instance
Bulky Item Collection (up to four items) $ 57.00/collection Additional Bulky Item (beyond four items) $ 25.00/item
Standard 40-Yard Rental (7 Days) $ 611.33
Low Boy Rental (7 Days) $ 758.33
Compactor $ 703.03/pull
Per Ton Over 6 Tons $ 71.21/ton
Box Rental Beyond 7 Days Without Pull $ 108.33/day
Trip Charge (Dry Run, Relocation) $ 222.22/trip
Contamination Fee $ 56.07/instance
ITEM 6.4 - Exhibit A
-8-
MAXIMUM RATE SCHEDULE FOR YEAR 3 (January 1, 2024 – December 31, 2024) (Rates are subject to CPI adjustment per Section 24)
Residential Services Rates
Standard Rate (1Refuse & 1 Recycling) $ 17.73/month plus $4.00/month if customer requests organics cart Extra Pickup $ 6.51/pickup
Additional Refuse Cart $ 10.56/month
Additional Recycling Cart $ 2.28/month
Walk-Out Service Eligible Customers No Charge
Walk-Out Service Other Customers $ 8.75/month
Contaminated Cart Fee $ 28.04/instance
Organics Pail (Purchase) $ 7.50 /pail
Monthly Residential Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 116.97 $ 178.38 $ 358.37 $ 477.80 $ 561.45 $ 645.03 N/A 3-Yard Refuse $ 130.86 $ 199.53 $ 400.89 $ 534.47 $ 628.00 $ 721.51 $ 1,049.96 4-Yard Refuse $ 179.92 $ 261.71 $ 592.53 $ 784.42 $ 976.30 $ 1,063.14 $ 1,521.32 2-Yard Recycling $ 87.73 $ 133.79 $ 268.78 $ 358.35 $ 421.09 $ 483.77 N/A 3-Yard Recycling $ 98.14 $ 149.65 $ 300.67 $ 400.85 $ 471.00 $ 541.13 N/A 4-Yard Recycling $ 147.42 $ 214.44 $ 485.51 $ 642.73 $ 799.96 $ 871.11 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 82.52 $ 152.66 $ 217.54 $ 279.18 $ 338.50 $ 396.05 N/A Cart - Recycling $ 61.89 $ 114.50 $ 163.16 $ 209.38 $ 253.88 $ 297.04 N/A 2-Yard Organics $ 177.45 $ 270.63 $ 543.67 $ 724.88 $ 851.73 $ 978.54 N/A Cart Organics $ 65.06 $ 99.21 $ 199.35 $ 265.79 $ 312.29 $ 358.80 N/A Residential Bin Rates
Extra Refuse Pickup $ 98.14/pickup
Extra Recycling Pickup $ 73.61/pickup
Extra Bin Exchange $ 125.00/exchange
Contaminated Bin Fee $ 56.07/instance
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 108.07
Temporary 4-Yard Bin N/A
Temporary Bin Rental Beyond 7 Days $ 9.53/day
Relocation Fee (Temporary 3-Yard Bin) $ 81.05
Monthly Commercial Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 127.79 $ 194.88 $ 391.52 $ 522.00 $ 613.39 $ 704.70 N/A 3-Yard Refuse $ 142.96 $ 217.99 $ 437.98 $ 583.90 $ 686.09 $ 788.25 $ 1,049.96 4-Yard Refuse $ 196.56 $ 285.92 $ 647.34 $ 856.97 $ 1,066.61 $ 1,161.48 $ 1,521.32 2-Yard Recycling $ 95.84 $ 146.16 $ 293.64 $ 391.50 $ 460.04 $ 528.52 N/A 3-Yard Recycling $ 107.22 $ 163.49 $ 328.48 $ 437.93 $ 514.57 $ 591.19 N/A 4-Yard Recycling $ 147.42 $ 214.44 $ 485.51 $ 642.73 $ 799.96 $ 871.11 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 90.15 $ 166.78 $ 237.66 $ 305.00 $ 369.82 $ 432.69 N/A Cart - Recycling $ 67.61 $ 125.09 $ 178.25 $ 228.75 $ 277.36 $ 324.51 N/A 2-Yard Organics $ 177.45 $ 270.63 $ 543.67 $ 724.88 $ 851.73 $ 978.54 N/A Cart Organics $ 65.06 $ 99.21 $ 199.35 $ 265.79 $ 312.29 $ 358.80 N/A ITEM 6.4 - Exhibit A
-9-
Commercial Services Rates
Monthly Commercial Green Waste Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week Green Waste Bin $ 174.04 $ 265.42 $ 533.22 $ 710.94 $ 835.35 $ 959.72 N/A Green Waste Cart $ 63.80 $ 97.30 $ 195.52 $ 260.67 $ 306.29 $ 351.90 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Commercial Green Waste Services Rates
Extra Green Waste Pickup $ 130.53/pickup
Contaminated Cart Fee $ 30.20/instance
Contaminated Bin Fee $ 56.07/instance
Roll-off Services Rates (Pull Rate Includes 6 Tons)
Standard 40-Yard Rental (7 Days) $ 641.90
Low Boy Rental (7 Days) $ 796.25
Compactor $ 738.19/pull
Per Ton Over 6 Tons $ 71.21/ton
Box Rental Beyond 7 Days Without Pull $ 113.75/day
Trip Charge (Dry Run, Relocation) $ 222.22/trip
Contamination Fee $ 56.07/instance
Scout/Push Out Services Rates (Per Bin/Per Service)
0 – 25 Feet $ 0.00
26 – 50 Feet $ 20.05
51 – 75 Feet $ 40.09
76 – 100 Feet $ 60.14
Greater than 100 Feet $ 0.20/foot
Split Bin Services
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 3-Yard Refuse &
Recycling $ 171.75 $ 218.24 $ 438.48 $ 584.57 $ 686.87 $ 789.15 N/A Extra Refuse Pickup $ 98.14/pickup
Extra Recycling Pickup $ 73.61/pickup
Extra Bin Exchange $ 125.00/exchange
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 108.07
Temporary 4-Yard Bin N/A
Temporary Bin Rental Beyond 7 Days $ 9.53/day
Relocation Fee (Temporary 3-Yard Bin) $ 81.05
Extra Organics Cart Pickup $ 48.79/pickup
Extra Organics Cart Exchange $ 30.20/exchange
Extra Organics Bin Exchange $ 124.39
Contaminated Bin Fee $ 56.07/instance
Contaminated Cart Fee $ 30.20/instance
Bulky Item Collection (up to four items) $ 57.00/collection Additional Bulky Item (beyond four items) $ 25.00/item
ITEM 6.4 - Exhibit A
-10-
MAXIMUM RATE SCHEDULE BEGINNING JANUARY 1, 2025
(Rates are subject to CPI adjustments per Section 24)
Residential Services Rates
Standard Rate (1Refuse & 1 Recycling) $ 18.23/month plus $4.00/month if customer requests organics cart Extra Pickup $ 6.51/pickup
Additional Refuse Cart $ 10.56/month
Additional Recycling Cart $ 2.28/month
Walk-Out Service Eligible Customers No Charge
Walk-Out Service Other Customers $ 8.75/month
Contaminated Cart Fee $ 28.04/instance
Organics Pail (Purchase) $ 7.50 /pail
Monthly Residential Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 134.51 $ 205.14 $ 412.12 $ 549.47 $ 645.67 $ 741.79 N/A 3-Yard Refuse $ 150.49 $ 229.46 $ 461.03 $ 614.64 $ 722.20 $ 829.74 $ 1,130.71 4-Yard Refuse $ 206.91 $ 300.97 $ 681.41 $ 902.08 $ 1,122.75 $ 1,222.61 $ 1,636.43 2-Yard Recycling $ 100.88 $ 153.85 $ 309.09 $ 412.10 $ 484.25 $ 556.34 N/A 3-Yard Recycling $ 112.86 $ 172.10 $ 345.77 $ 460.98 $ 541.65 $ 622.30 N/A 4-Yard Recycling $ 155.18 $ 225.73 $ 511.06 $ 676.56 $ 842.06 $ 916.96 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 94.90 $ 175.56 $ 250.17 $ 321.06 $ 389.28 $ 455.46 N/A Cart - Recycling $ 71.17 $ 131.67 $ 187.63 $ 240.79 $ 291.96 $ 341.59 N/A 2-Yard Organics $ 204.07 $ 311.22 $ 625.22 $ 833.61 $ 979.49 $ 1,125.32 N/A Cart Organics $ 74.81 $ 114.09 $ 229.25 $ 305.65 $ 359.14 $ 412.62 N/A Residential Bin Rates
Extra Refuse Pickup $ 112.86/pickup
Extra Recycling Pickup $ 84.65/pickup
Extra Bin Exchange $ 143.75/exchange
Contaminated Bin Fee $ 56.07/instance
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 110.77
Temporary 4-Yard Bin N/A
Temporary Bin Rental Beyond 7 Days $ 9.77/day
Relocation Fee (Temporary 3-Yard Bin) $ 88.08
Monthly Commercial Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 2-Yard Refuse $ 134.51 $ 205.14 $ 412.12 $ 549.47 $ 645.67 $ 741.79 N/A 3-Yard Refuse $ 150.49 $ 229.46 $ 461.03 $ 614.64 $ 722.20 $ 829.74 $ 1,130.71 4-Yard Refuse $ 206.91 $ 300.97 $ 681.41 $ 902.08 $ 1,122.75 $ 1,222.61 $ 1,636.43 2-Yard Recycling $ 100.88 $ 153.85 $ 309.09 $ 412.10 $ 484.25 $ 556.34 N/A 3-Yard Recycling $ 112.86 $ 172.10 $ 345.77 $ 460.98 $ 541.65 $ 622.30 N/A 4-Yard Recycling $ 155.18 $ 225.73 $ 511.06 $ 676.56 $ 842.06 $ 916.96 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Cart - Refuse $ 94.90 $ 175.56 $ 250.17 $ 321.06 $ 389.28 $ 455.46 N/A Cart - Recycling $ 71.17 $ 131.67 $ 187.63 $ 240.79 $ 291.96 $ 341.59 N/A 2-Yard Organics $ 204.07 $ 311.22 $ 625.22 $ 833.61 $ 979.49 $ 1,125.32 N/A Cart Organics $ 74.81 $ 114.09 $ 229.25 $ 305.65 $ 359.14 $ 412.62 N/A ITEM 6.4 - Exhibit A
-11-
Commercial Services Rates
Monthly Commercial Green Waste Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week Green Waste Bin $ 200.15 $ 305.23 $ 613.20 $ 817.58 $ 960.66 $ 1,103.68 N/A Green Waste Cart $ 73.37 $ 111.90 $ 224.84 $ 299.77 $ 352.23 $ 404.68 N/A Locking Bin (addt.) $ 7.30 $ 8.03 $ 8.39 $ 8.75 $ 9.12 $ 9.49 N/A Commercial Green Waste Services Rates
Extra Green Waste Pickup $ 150.11/pickup
Contaminated Cart Fee $ 30.95/instance
Contaminated Bin Fee $ 56.07/instance
Roll-off Services Rates (Pull Rate Includes 6 Tons)
Standard 40-Yard Rental (7 Days) $ 674.00
Low Boy Rental (7 Days) $ 836.06
Compactor $ 775.09/pull
Per Ton Over 6 Tons $ 71.21/ton
Box Rental Beyond 7 Days Without Pull $ 119.44/day
Trip Charge (Dry Run, Relocation) $ 222.22/trip
Contamination Fee $ 56.07/instance
Scout/Push Out Services Rates (Per Bin/Per Service)
0 – 25 Feet $ 0.00
26 – 50 Feet $ 20.05
51 – 75 Feet $ 40.09
76 – 100 Feet $ 60.14
Greater than 100 Feet $ 0.20/foot
Monthly Split Bin Services Rates
Container Size/Type 1/week 2/week 3/week 4/week 5/week 6/week 7/week 3-Yard Refuse &
Recycling $ 214.69 $ 272.80 $ 548.10 $730.71 $858.59 $ 986.44 N/A Extra Refuse Pickup $ 112.86/pickup
Extra Recycling Pickup $ 84.65/pickup
Extra Bin Exchange $ 143.75/exchange
Temporary 2-Yard Bin N/A
Temporary 3-Yard Bin Rental (7 Days) $ 110.77
Temporary 4-Yard Bin N/A
Temporary Bin Rental Beyond 7 Days $ 9.77/day
Relocation Fee (Temporary 3-Yard Bin) $ 88.08
Extra Organics Cart Pickup $ 56.11/pickup
Extra Organics Cart Exchange $ 30.95/exchange
Extra Organics Bin Exchange $ 143.05
Contaminated Bin Fee $ 56.07/instance
Contaminated Cart Fee $ 30.95/instance
Bulky Item Collection (up to four items) $ 57.00/collection Additional Bulky Item (beyond four items) $ 25.00/item
ITEM 6.4 - Exhibit A
This page is intentionally blank.

6.5 WASTE DISPOSAL AGREEMENT
This page is intentionally blank.

WASTE DISPOSAL AGREEMENT
Between

THE COUNTY OF ORANGE, CALIFORNIA
and
the

CITY OF LAGUNA WOODS
Dated 2009
County Authorization Date: City Authorization Date:

March 24, 2009
County Notice Address: City Notice Address:

Director
OC Waste& Recycling
300 N. Flower Street, Suite 400
Santa Ana, CA 92703 COY;` OF LAGUNA WOODS
24264 EL TORO ROAD
LAGUNA WOODS, CA 92637
Execution Copy
ITEM 6.5 - Attachment A
TABLE 0FCONTENTS
page

ARTICLE

DEFINITIONS AND INTERPRETATION
Section 1. 1 DEFINITIONS...................... .... .....................................................—....... ......................... — 2 Section 1. 2 INTERPRETATION............................. .,.— ................. —........... ............................................ 7 ARTICLE 11

REPRESENTATIONS AND WARRANTIES
Section 2. 1 REPRESENTATIONS AND WARRANTIES 0F THE CITY....... —......................... ..................8 Section 2. 2 REPRESENTATIONS AND WARRANTIES 8F THE COUNTY.................................................9

ARTICLE III
DELIVERY AND ACCEPTANCE OB WASTE AND PROVISION 0Y DISPOSAL SERVICE Section 3. 1 DELIVERY 0RYV6` 8TB....... . ......... .........................................,...... ........ .............. —. ...... 9 Section 3. 2 PROVISION{ F DISPOSAL SERVICES Bl, THE COUNTY................ ...... ............................. ll Section 3. 3 COUNTY RIGHT T0 REFUSE W& JTE,....... ... .......................... — .................................. . i2 Section 3. 4 UNINCORPORATED AREA ACCEPTABLE WASTE................... ............................... . ...... l3 Section 3. 5 MISCELLANEOUS OPERATIONAL MATTER8.......,.`.—............... ............. .... ............ l4 Section 3. 6 OTHER USERS 0P THE DISPOSAL SYSTEM. ............................ ....... . ................---...... l4 Section 3. 7 COUNTY PROVISION 0y WASTE DIVERSION SERVICES.............................................. .... 15

ARTICLE IV

CONTRACT RATE
Section 4. 1 CHARGING AND SECURING PAYMENT 0F CONTRACT RATE.................... ....... .. ...... l5 Section 4. 2 C( BNTD& CTKA18........................ ........... .... `....---....... ........ ........ ... —.............................. l5 Section 4. 3 8B8Y0N8IBDLlIY FOR PAYMENT 0y THE CONTRACT 8AI8..— .... ......... .... ............ l Section 4. 4 BILLING 0F THE CONTRACT RATE..... —,,,, ..........— ..........---........... — ................. 2l Section 4. 5 RESTRICTED RESERVES................................... ..... —`.... ....... ......................... ....... , ...... 2l Section 4. 6 AUDITED FINANCIAL STATEMENTS................. ......................... ............... ......... .............. 22 Section 4. 7 ANNUAL UPDATE 0P TEN- YEAR FINANCIAL PROJECTION...... ................ ........... ...... 22

ARTICLE V

BREACH, ENFORCEMENT AND TERMINATION
Section5. 1 BREACH.................................. .... ...---. ..... ...................... ........ ........................ 2] Section 5. 2 CITY CONVENIENCE TERMINATION............ .......---.......... ........ ..................... ...... ........ 3 Section5. 3 TERMINATION...........— ........... ......... — .................................... ................................... ...... 23 Section 5. 4 0C. WAIVERS.......... .............---...... .... ... ......... ........................---.... ...... ..................... 24 Section 5. 5 FORUM FOR DISPUTE RESOLUTION..... ... ................................... ............... ..................... 24

ARTICLE VI
TERM
Section 6. 1 EFFECTIVE DATE AND TERM.................................................. . ............. ........ ...... ............. 4 Section 6. 2 C8MIAENCbM8yID& IR,.. .................................................... ..................... .......................%5 Execution Copy
ITEM 6.5 - Attachment A

ARTICLE VII

GENERAL PROVISIONS
Section 71 OPERATION AND MAINTENANCE OF THE DISPOSAL SYSTEM.......................................26 Section 7. 2 UNCONTROLLABLE CIRCUMSTANCES GENERALLY.......___.......................................,...26 Section 7. 3 INDEMNIFICATION......._..................._.._.._.............__.............................._.............................. 27 Section 7. 4 RELATIONSHIP OF THE PARTIES............................................................................................ 27 Section 7. 5 LIMITED RECOURSE._..................................................................................................._........... 27 Section 7.6 PRE- EXISTING RIGHTS AND LIABILITIES.............................................................................27 Section 7. 7 NO VESTED RIGHTS..................................................................................._.....,.,...,.................. 28 Section 7. 8 LIABILITY FOR COLLECTION, TRANSPORTATION AND PROCESSING.......................... 28 Section 7. 9 NO CONSEQUENTIAL OR PUNITIVE DAMAGES..................................................................28 Section 7. 10 AMENDMENTS........._................................................................................................................. 28 Section 7. 11 NOTICE OF LITIGATION...................................____.........................................................._. 28 Section 7. 12 FURTHER ASSURANCES........................................................................................................... 28 Section 7. 13 ASSIGNMENT OF AGREEMENT..,.... ...... ..........__...____....................... ....__.................. 28 Section 7. 14 INTEREST ON OVERDUE OBLIGATIONS........... .................... ............ ................-...._......_28 Section 7. 15 BINDING EFFECT............................................ ...........................................................................28 Section7. 16 NOTICES..........................____............................. ............... .............................._..................... 28 APPENDIX 1

ESTIMATED ANNUAL TONNAGE
APPENDIX 2

CUMULATIVE TONNAGE TARGETS
APPENDIX 3

CUMULATIVE CAPITAL COSTS
APPENDIX 4

FORM OF HAULER ACKNOWLEDGEMENT
ii
Execution Copy
ITEM 6.5 - Attachment A

WASTE DISPOSAL AGREEMENT
THIS WASTE DISPOSAL AGREEMENT is made and dated as of the date indicated on the cover page hereof between the County of Orange, a political subdivision ofthe State of California( the" County"), and the City designated on the cover page of this Agreement, a general law or charter city and political subdivision of the State of California( the" City").

RECITALS
The County owns, manages and operates a sanitary landfill system for the disposal of municipal solid waste generated by the cities and the unincorporated area within the County ( the " Disposal System"). The Disposal System includes three active landfills and four regional household hazardous waste collection centers.

The Disposal System is used for the disposal of municipal solid waste which is not reused, recycled or otherwise diverted from landfill disposal, pursuant to the California Integrated Waste Management Act of 1989.

Division 30 of the California Public Resources Code)( the" Act").

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

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

In 1997, the City and the County entered in a waste disposal agreement( the " Original WDA"), pursuant to which the County agreed to provide disposal capacity for waste generated in the City, and the City agreed to deliver or cause the delivery of waste generated in the City to the Disposal System, as more specifically set forth in, and subject to the terms and conditions of,the Original WDA.

The Original WDA, as amended, will expire by its terms on June 30, 2010, unless the City and the County agree to renew the Original WDA.

The City and the County desire to enter into this agreement to extend, amend and restate the Original WDA, on the terms and conditions set forth herein. The County and City acknowledge that the Original WDA shall remain in full force and effect until the Commencement Date.

The City has determined that the execution of this Agreement by the City will serve the public health; safety and welfare of the City by providing greater disposal rate stability, more predictable and reliable Long- term disposal service, and the continuation of sound environmental management.

The County has determined that the execution by the County ofthis Agreement will serve the public health, safety and welfare by providing a more stable, predictable and reliable supply of municipal solid waste and the resulting service payment revenue to the Disposal System, thereby enabling the County to plan, manage, operate and finance improvements to the Disposal System on amore prudent and sound long term, businesslike basis consistent with its obligations to the State and the holders of obligations secured by its Disposal System.

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

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

It is, therefore, agreed as follows:

Execution Copy
ITEM 6.5 - Attachment A

ARTICLE I

DEFINITIONS AND INTERPRETATION
SECTION 1. 1 DEFINITIONS. As used in this Agreement, the following terms shalt have the meanings set forth below.

Acceptable Waste" means all garbage, refuse, rubbish and other materials and substances discarded or rejected as being spent, useless, worthless or in excess to the owners at the time of such discard or rejection and which are normally disposed of by or collected from residential ( single family and multi-family), commercial, industrial, governmental and institutional establishments and which are acceptable at Class III landfills under Applicable Law.

Act" means the California Integrated Waste Management Act of 1989 ( Division 30 of the California Public Resources Code), as amended, supplemented, superseded and replaced from time to time.

Agreement'' means this Waste Disposal Agreement between the County and the City as the same may be amended or modified from time to time in accordance herewith.

Appendix" means an appendix to this Agreement, as the same may be amended or modified from time to time in accordance with the terms hereof
Applicable Law" means the Act, the Orange County Code, CERCLA, RCRA, CEQA, any Legal Entitlement and any federal or state rule, regulation, requirement, guideline, permit, action, determination or order of any Governmental Body having jurisdiction, applicable from time to time to the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, operation or maintenance of the Disposal System, the transfer, handling, transportation and disposal of Acceptable Waste, Unacceptable Waste, or any other transaction or matter contemplated hereby ( including any of the foregoing which concern health, safety, fire, environmental protection, mitigation monitoring plans and building codes).

Board" means the California Integrated Waste Management Board.

Capital Costs" means all costs of the Disposal System that are classified as capital costs for purposes of the budget of the Department in accordance with procedures established by the County of Orange AuditorController in compliance with the California State Controller' s Manual, including but not limited to all of the categories of costs of the Disposal System reported as ` Buildings and Improvements, and Infrastructure" ( Object Code 4200) or " Equipment" ( Object Code 4000) in the County of Orange—. Chart of Accounts, or any successor accounting or reporting system utilized by the County.

CEQA" means the California Environmental Quality Act, codified at Cal. Pub. Res. Code Section 21000 at seq. as amended or superseded, and the regulations promulgated thereunder.

CERCLA" means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C.A. Section 9601 at seq., as amended or superseded, and the regulations promulgated thereunder.

Change in Law" means any of the following events or conditions which has a material and adverse effect on the performance by the parties of their respective obligations under this Agreement ( except for payment obligations), or on the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, operation or maintenance ofthe Disposal System or other matters to which Applicable Law applies:
1) the enactment, adoption, promulgation, issuance, material modification or written change in administrative or judicial interpretation on or after the Commencement Date of any Applicable Law( other than Applicable Law enacted by the County);
2) the order or judgment of any Governmental Body( other than the County), on or after the Commencement Date, to the extent such order or judgment is not the result of willful or negligent action, error or 2 Execution Copy
ITEM 6.5 - Attachment A
omission or lack of reasonable diligence of the County or of the City, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or the failure in good faith to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission or lack of reasonable diligence; or
3) the denial of an application for, delay in the review, issuance or renewal of, or suspension, termination, interruption, imposition of a new or more stringent condition in connection with the issuance, renewal or failure ofissuance or renewal on or after the Commencement Date of any Legal Entitlement to the extent that such denial, delay, suspension, termination, interruption, imposition or failure materially and adversely interferes with the performance of this Agreement, if and to the extent that such denial, delay, suspension, termination, interruption, imposition or failure is not the result of willful or negligent action, error or omission or a lack of reasonable diligence of the County or of the City, whichever is asserting the occurrence ofa Change in Law; provided, however that the contesting in good faith or the failure in good faith to contest any such denial, delay, suspension, termination, interruption, imposition or failure shall not be construed as such a willful or negligent action, error or omission or lack of reasonable diligence, A" Change in Law" shall include but not be limited to any new or revised requirements relating to the funding or provision of disposal services, including but not limited to any regulations for disposal operations or activities associated with the remediation, closure, funding or monitoring of closed sites with respect to facilities comprising the Disposal System, or facilities which the County previously utilized to provide waste disposal, transfer, recycling, processing or other waste related activities.

City" means; as applicable, the city or Sanitary District designated on the cover page of this Agreement and party to this Agreement.

City Acceptable Waste" means all Acceptable Waste which was originally discarded by the first generator thereof within the geographical limits of the City, and Residue from the foregoing wherever produced, whether within, or outside the City ( or Tonnage equivalencies of such Residues, as and to the extent provided in subsection M(C) hereof).

Commencement Date" means the date on which the obligations of the parties hereto commence, established as provided in Section 6. 2( B) hereof.

Contract Date" means the first date on which this Agreement has been executed by both parties hereto.

Contract Rate" has the meaning specified in Section 4. 2 hereof.

Contract Year" means the fiscal year commencing on July 1 in any year and ending on June 30 of the following year.

Controllable Waste" means all City Acceptable Waste with respect to which the City has the legal or contractual ability to determine the disposal location therefor and which is:
1) Non- Recycled City Acceptable Waste;
2) not generated from the operations of the Governmental Bodies which,. under Applicable Law, have the independent power to arrange for the disposal ofthe waste they generate; and 3) collected and hauled by Franchise Haulers.

County" means the County of Orange, a political subdivision of the State of California and party to this Agreement.

County Plan" means the integrated waste management plan of the County approved by the Board pursuant to the Act as in effect from time to time.
3 Execution Copy
ITEM 6.5 - Attachment A
County Acceptable Waste" means Acceptable Waste generated in the County.

County OC Waste & Recycling Enterprise Fund" means the waste management enterprise fund established and managed by the County pursuant to Section 25261 ofthe Government Code separate from its other funds and accounts for receipts and disbursements in connection with the Disposal System.

County- wide Recycling Services" has the meaning set forth in subsection 3. 7( A) hereof.

Cumulative Tonnage Target" for any given Contract Year means the amount specified in Appendix 2 hereto with respect to such Contract Year.

Department" means OC Waste &. Recycling, and any agency, department or other Governmental Body which succeeds to the duties and powers thereof.

Disposal Agreements" means each of the waste disposal agreements entered into between the County and any city within the County, Sanitary District or operator of any Transfer Station located in the County in accordance herewith.

Disposal Services" means the solid waste disposal services to be provided by the County pursuant to the Service Covenant and otherwise hereunder.

Disposal System" means the Orange County Waste Disposal System which includes solid waste disposal operations at three active landfills ( Olinda Alpha, Frank R. Bowerman and Prima Desheeha); four regional Household Hazardous Waste Collection Centers; as well as services, such as monitoring and other activities, at closed refuse stations formerly operated by the County, as appropriate under Applicable Law.

Environmental Fund" means the fund or funds held by the County to pay unanticipated costs of environmental mitigation, remediation or liability.

Franchise Hauler" means any hauler or collector who provides Acceptable Waste collection services within the City pursuant to, or under authority granted by, a permit, contract, franchise or other. agreement with the City. The term Franchise Hauler includes the City itself if Acceptable Waste collection and transportation services are provided directly by City operated municipal collection service.

Governmental Body" means any federal, State, county, city or regional legislative, executive, judicial or other governmental board, agency, authority, commission, administration, court or other body, or any officer thereof acting within the scope of his or her authority.

Hazardous Substance" has the meaning given such term in CERCLA, the Carpenter- Presley- Tanner Hazardous Substance Account Act( California Health and Safety Code Section 25300 et seq.), and Titles 22 and 26 of the California Code of Regulations and other regulations promulgated thereunder.

Hazardous Waste" means ( a) any waste which by reason of its quality, concentration, composition or physical, chemical or infectious characteristics may do either of the following: cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness, or pose a substantial threat or potential hazard to human health or the environment, or any waste which is defined or regulated as a hazardous waste, toxic substance, hazardous chemical substance or mixture, or asbestos under Applicable Law, as amended from time to time including, but not limited to: ( 1) the Resource Conservation and Recovery Act and the regulations contained in 40 CFR Parts 260- 281; ( 2) the Toxic Substances Control Act( 15 U. S. C. Sections 2601 et seq.) and the regulations contained in 40 CFR Parts 761- 766; ( 3) the California Health and Safety Code,.

Section 25117 ( West 1992 & Supp. 1996); ( 4) the California Public Resources Code, Section 40141 ( West 1996); and( 5) future additional or substitute Applicable Law pertaining to the identification, treatment, storage or disposal of toxic substances or hazardous wastes; or( b) radioactive materials which are source, special nuclear or by- product material as defined by the Atomic Energy Act of 1954 ( 42 U. S. C. Section 2011 et seq.) and the regulations contained in 10 CFR Part 40.
4 Execution Copy
ITEM 6.5 - Attachment A
Imported Acceptable Waste" means Acceptable Waste that is generated outside of the geographical boundaries of the County and delivered to the Disposal System.

Independent Haulers" means those waste collection/hauler companies primarily engaged as a principal business in the collection and transportation of municipal solid waste generated in the County of Orange which are not obligated to deliver County Acceptable Waste to the Disposal System pursuant to a franchise, contract, permit or other authorization with a city in the County.

Initial Term" has the meaning specified in Section 6. 1( A) hereof.

Legal Entitlement" means all permits, licenses, approvals, authorizations, consents and entitlements of whatever kind and however described which are required under Applicable Law to be obtained or maintained by any person with respect to the Disposal System or the performance of any obligation under this Agreement or the matters covered hereby.

Legal Proceeding" means every action, suit, litigation, arbitration, administrative proceeding, and other legal or equitable proceeding having a bearing upon this Agreement.

Loss- and- Expense" means any and all loss, liability, obligation, damage, delay, penalty, judgment, deposit, cost, expense, claim, demand, charge, tax, or expense, including all fees and costs.

Net Import Revenues" has the meaning ascribed thereto in Section 3. 6( E).

Non-Recycled City Acceptable Waste means all City Acceptable Waste other than Recycled City Acceptable Waste.

Overdue Rate" means the maximum rate of interest permitted by the laws of the State, if applicable, or the prime rate established from time to time by the Bank of America, N.A. or its successors and assigns, plus 2%, whichever is lower.

Participating City" means any city or Sanitary District executing a Disposal Agreement in accordance with Section 3. 6( A) hereof and meeting all requisite conditions to the Commencement Date thereof.

Plan of Adjustment" means the County' s Modified Second Amended Plan of Adjustment, confirmed by the United States Bankruptcy Court Central District of California in that Conformed Order Confirming Modified Second Amended Plan ofAdjustment, filed May 17, 1996.

Posted Disposal Rate" means the per ton tipping fee charged by the County for the disposal of solid waste at the Disposal System by parties which are not entitled to disposal service at the Contract Rate pursuant to this Agreement.

Prohibited Medical Waste" means any medical or infectious waste prohibited or restricted under Applicable Law from being received by or disposed at Disposal System.

Qualified Household Hazardous Waste" means waste materials determined by the Board, the Department of Health Services, the State Water Resources Control Board, or the Air Resources Board to be:
1) Of anature that they must be listed as hazardous in State statutes and regulations; 2) Toxic/ignitable/corrosive/reactive; and
3) Carcinogenic/ mutagenie/ teratogenic•,
which are discarded from households as opposed to businesses. Qualified Household Hazardous Waste shall not include Unacceptable Waste.
5 Execution Copy
ITEM 6.5 - Attachment A
Recycled City Acceptable Waste" means any otherwise Controllable Waste which is separated from Acceptable Waste by the generator thereof or by processing and which is ` recycled" within the meaning of Section 40180 ofthe Public Resources Code.

Renewal Term" has the meaning specified in Subsection 6. l(B) hereof.

Residue" means any material remaining from the processing, by any means and to any extent, of City Acceptable Waste or Recycled City Acceptable Waste; provided, however, that Residue shall not include minimal amounts of material remaining after such processing( which minimal amounts shall in no event exceed 10% of the amount of such City Acceptable Waste or Recycled City Acceptable Waste prior to processing).

Resource Conservation and Recovery Act" or" RCRA" means the Resource Conservation and Recovery Act, 42 U.S. C. A. Section 6901 etseq., as amended and superseded.

Restricted Reserves" has the meaning specified in Section 4. 5.

Sanitary Districts" means the sanitary districts in the County formed pursuant to the Sanitary District Act of 1923, codified at Cal. Ann. Health & Safety Code Section 6400 el seq., as amended, supplemented, superseded and replaced from time to time.

Self-Hauled Waste" means City Acceptable Waste collected and hauled by Self-Haulers.

Self-Hauler" means any person not engaged commercially in waste haulage who collects and hauls Acceptable Waste generated from residential or business activities conducted by such person.

Service Coordinator" means the service coordinator for either party designated pursuant to subsection 3. 5( C) hereof.

Service Covenant" means the covenants and agreements of the County set forth in Sections 3. 2 and 3. 3 hereof.

Source- Separated Household Hazardous Waste" means Qualified Household Hazardous Waste which has been segregated from Acceptable Waste originating or generated within the geographical jurisdiction of the City at the source or location of generation.

Source- Separated Household Hazardous Waste Disposal System" means the collection centers, facilities, contracts and other arrangements owned or administered by the County for the receipt, handling and disposal of Source- Separated Household Hazardous Waste.

State" means the State of California.

Term" shall mean the Term of this Agreement.

Ton" means a" short ton" of 2, 000 pounds.

Transfer Station" means any materials recovery facility, composting facility, intermediate processing facility, recycling center, transfer station or other waste handling or management facility to which . solid waste collected for the City is delivered for processing before disposal in the Disposal System.

Unacceptable Waste" means Hazardous Waste; Hazardous Substances; Prohibited Medical Waste; Qualified Household Hazardous Waste separated from Acceptable Waste; explosives, ordnance, highly flammable substances, and noxious materials and lead- acid batteries ( except if delivered in minimal quantities); drums and closed containers; liquid waste, oil, human wastes; machinery and equipment from commercial or industrial sources, such as hardened gears, shafts, motor vehicles or major components thereof, agricultural equipment, trailers, marine 6 Execution Copy
ITEM 6.5 - Attachment A
vessels and steel cable; hot loads; and any waste which the Disposal System is prohibited from receiving under Applicable Law.

Uncontrollable Circumstance" means any act, event or condition affecting the Disposal System, the County, the City, or any of their Franchise Haulers, contractors or suppliers to the extent that it materially and adversely affects the ability of either party to perform any obligation under the Agreement ( except for payment obligations), if such act, event or condition is beyond the reasonable control of and is not also the. result of the willful or negligent act, error or omission or failure to exercise reasonable diligence on the part ofthe party relying thereon as justification for not performing an obligation or complying with any condition required of such party under the Agreement; provided, however, that the contesting in good faith or the failure in good faith to contest such action or inaction shall not be construed as willful or negligent action or a lack of reasonable diligence of either party. Examples of Uncontrollable Circumstances are:
1) an act of God, landslide, ligbtning, earthquake, fire, explosion, flood, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance; and 2) a Change in Law.

Unincorporated Area" means those portions of the County which are not contained within the jurisdictional boundaries ofincorporated cities.

Unincorporated Area Acceptable Waste" means Acceptable Waste originating from or generated within the Unincorporated Area.

Unrestricted Reserves" means cash and other reserves of the Disposal System which are not Restricted Reserves.

Waste Disposal Covenant" means the covenants and agreements ofthe City set forth in Section 3. 1 hereof.

SECTION 1. 2 INTERPRETATION. In this Agreement, unless the context otherwise requires:

A) References Hereto. The terms" hereby"," hereof'," herein"," hereunder" and any similar terms refer to this Agreement, and the term " hereafter" means after, and the term " heretofore" means before, the Contract Date.

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

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

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

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

F) CounteMarts. This Agreement may be executed in any number of original counterparts.

All such counterparts shall constitute but one and the same Agreement. 7 Execution Copy
ITEM 6.5 - Attachment A
G) Applicable Law. This Agreement shall be governed by and construed in accordance with the Applicable Laws of the State of California.

H) Severability. If any clause, provision, subsection, Section or Article of this Agreement shall be ruled invalid by any court ofjurisdiction, then the parties shall: ( 1) promptly meet and negotiate a substitute for such clause, provision, subsection, Section or Article which shall, to the greatest extent legally permissible, effect the intent of the parties therein; ( 2) if necessary or desirable to accomplish item ( 1) above, apply to the court having declared such invalidity for a judicial construction of the invalidated portion of this Agreement; and 3) negotiate such changes in, substitutions for or additions to the remaining provisions ofthis Agreement as may be necessary in addition to and in conjunction with items ( 1) and ( 2) above to effect the intent of the parties in the invalid provision. The invalidity of such clause, provision, subsection, Section or Article shall not affect any of the remaining provisions hereof, and this Agreement shall be construed and enforced as if such invalid portion did not exist, unless such invalidity frustrates the underlying primary purpose ofthe Agreement. 1) Integratiom Preservation of Certain Agreements. This Agreement contains the entire agreement between the parties with respect to the transactions contemplated hereby. This Agreement shall completely and fully supersede all prior understandings and agreements between the Parties with respect to such transactions; provided, however, that this Agreement shall not supersede the following agreements:
1) MOU, dated March 10, 1992, between the City of Brea and the County of Orange regarding the Olinda Alpha Landfill as amended on April 6, 1993 and November 29, 1994; 2) MOU, dated May 11, 1995, between the City of Brea and the County of Orange regarding importation ofout-of-County waste to the Olinda Alpha Landfill; 3) Settlement Agreement, dated August 1, 1984, between the City of Irvine and the County ofOrange regarding the Bee Canyon Landfill( currently called Frank R. Bowerman Landfill); 4) MOU; dated May 16, 1995, between the City of Irvine and the County of Orange regarding importation of out-of-County waste to the Frank R. Bowerman Landfill; 5) MOU, dated September 12, 1995, and amended November 21, 1995, between the City of San Juan Capistrano and the County of Orange regarding importation of out-of-County waste to the Prima Deshecha Landfill;
6) MOU, dated July 1, 1997, between the City of San Clemente[, the Orange County Flood Control District] and the County of Orange regarding the Prima Deshecha Landfill; and 7) Cooperative Agreement, dated August 15, 2006, between the County and the City of Irvine.

J) Recitals. The recitals to this Agreement are not intended to bind the parties hereto. In the event of a conflict between the recitals and the operative provisions of this Agreement, the operative provisions shall prevail. The recitals shall not be used to interpret the provisions of the Agreement.

ARTICLE 11

REPRESENTATIONS AND WARRANTIES
SECTION 2. 1 REPRESENTATIONS AND WARRANTIES OF THE CITY. The City represents and warrants that:

A) Existence. The City is a general law or charter city validly existing under the Constitution and laws ofthe State.
8 Execution Copy
ITEM 6.5 - Attachment A
B) Due Authorization. The City has duly authorized the execution and delivery of this Agreement, and this Agreement has been duly executed and delivered by the City.

SECTION 2.2 REPRESENTATIONS AND WARRANTIES OF THE COUNTY. The County represents and warrants that:

A) Existence. The County is a political subdivision of the State of California validly existing under the Constitution and laws of the State.

B) Due Authorization, The County has duly authorized the execution and delivery of this Agreement, and this Agreement has been duly executed and delivered by the County.

ARTICLE III

DELIVERY AND ACCEPTANCE OF WASTE

AND PROVISION OF DISPOSAL SERVICE
SECTION 3. 1 DELIVERY OF WASTE.

A) Waste Disposal Covenant. Subject to the occurrence of the Commencement Date and throughout the Term ofthis Agreement, the City shall exercise all legal and contractual power and authority which it may possess from time to time to deliver or cause the delivery of all Controllable Waste to the Disposal System in accordance herewith.

B) Recycled City Acceptable Waste. The parties hereto acknowledge the responsibility of the City to meet the recycling and landfill diversion goals contained in the Act. Nothing in this Agreement is intended or shall be interpreted to prohibit or impair the ability ofthe City to meet such responsibilities, or to restrict the right of the residents, businesses or organizations in the City to practice source separation, recycling, composting or other materials recovery activities, or to restrict the right of the City to conduct, sponsor, encourage or require such activities in any form. No reduction in the amount of Controllable Waste generated in the City and delivered to the Disposal System by or on behalf of the City which may result from any such source separation or recycling program shall cause the City any liability hereunder ( other than potential adjustment to the Contract Rate to the extent provided in Article IV hereof) and shall not constitute a breach of this Agreement.

C) Waste Delivered to Transfer Station. All Residue from any processing of Controllable Waste by materials recovery, composting, recycling or other means, wherever performed, shall constitute Controllable Waste and be subject to the Waste Disposal Covenant. Where City Acceptable Waste is processed at facility which concurrently processes other Acceptable Waste in a manner which produces commingled residue which cannot be traced to geographic source, generic residues from such facility in Tonnage equal to the residues that would have been produced had City Acceptable Waste only been processed at the facility shall constitute Controllable Waste and be subject to the Waste Disposal Covenant. Any City Acceptable Waste or material derived or segregated therefrom which is held in storage and asserted by the possessor thereof to constitute. Recycled City Acceptable Waste awaiting sale or distribution to the secondary materials markets shall constitute Controllable Waste if, when and to the extent that the storage or diversion thereof can be reasonably deemed to constitute an evasion of the Waste Disposal Covenant rather than generally recognized, accepted and prevailing practice in the Southern California materials recovery and recycling industry conducted in accordance with Applicable Law. In order for the owner and/ or operator of a transfer station to be entitled to deliver Acceptable Waste from a Participating City to the Disposal System for the Contract Rate as provided in Article IV, such owner and/ or operator must execute a direct agreement with the County, acknowledging and agreeing to comply with the obligation of the Participating City to cause the delivery of all Controllable Waste to the Disposal System pursuant to this Agreement. In addition, the County shall be authorized to implement procedures to determine if Acceptable Waste delivered by the owners or operators of Transfer Stations is entitled to utilize the Disposal System for the Contract Rate. Such procedures may include requiring Transfer Stations to certify, under penalty of perjury, the source of any such Acceptable Waste. If necessary, the County may require that, in order to qualify for use of the Disposal System for the Contract Rate, Transfer Stations. must deliver Controllable Waste in loads containing only Controllable Waste, and not commingled with Acceptable Waste from entities which are not Participating Cities or Participating Independent Haulers.
9 Execution Copy
ITEM 6.5 - Attachment A
D) Power to Obligate Waste Disposal and Comply with this Agreement. On or before the Commencement Date, ( i) any City franchise, contract, lease, or other agreement which is lawfully in effect relating to or affecting Controllable Waste shall provide, or shall have been amended to provide, that the City shall have the right without material restriction on and after the Commencement Date to direct the delivery of all Controllable Waste to a disposal location selected by the City( whether or not such Controllable Waste is delivered to a transfer station as an intermediate step prior to Iandfill disposal) and otherwise to comply with its obligations under this Agreement with respect to Controllable Waste and Franchise Haulers, and( ii) the City shall designate the Disposal System as the disposal location pursuant to such franchise, contract, lease or other agreement. On and after the Commencement Date and throughout the Term of this Agreement the City ( a) shall not enter into any franchise, contract, lease, agreement or obligation, issue any permit, license or approval, or adopt any ordinance, resolution or law which is materially inconsistent with the requirements of the Waste Disposal Covenant, and ( b) shall maintain non- exclusive or exclusive franchises or other contractual arrangements over any City Acceptable Waste which, as ofthe Contract Date, is subject to non-exclusive or exclusive franchise or other contractual arrangements. The City agrees that the County shall be a third party beneficiary of the obligation of Franchise Haulers to deliver Controllable Waste to the Disposal System, and may directly enforce such obligation through any legal means available. The City shall notify in writing each Franchise Hauler of the County' s Third party beneficiary rights.

E) Waste Flow Enforcement. ( 1) The City, in cooperation with the Department, shall establish, implement, carry out and enforce a waste flow enforcement program which is sufficient to assure the delivery of all Controllable Waste to the Disposal System pursuant to and in accordance with the Waste Disposal Covenant for disposal at the times and in the manner provided herein. The waste flow enforcement program shall consist of amending City franchises, permits or authorizations with all Franchise Haulers, to the extent required by this Section and to the extent allowed by law, and shall include in addition, to the extent necessary and appropriate in the circumstances to assure compliance with the Waste Disposal Covenant, but shall not be limited to:
i) licensing or permitting Franchise Haulers, upon the condition of compliance with the Waste Disposal Covenant, ii) providing for and taking appropriate enforcement action under any such franchise, license, or permit, such as but not limited to the suspension, revocation and termination of collection rights and privileges, the imposition of fines or collection of damages, and the exercise of injunctive relief against non- complying Franchise Haulers and iii) causing any Transfer Station to which Controllable Waste is delivered for processing to deliver certification,. under the penalty of perjury, ofthe amounts of Controllable Waste received and Residue remaining from processing at such Transfer Station.
2) The City acknowledges and agrees that in the event of a breach of the Waste Disposal Covenant by the City, the City shall pay the County an amount equal to the amount that the City would have been required to pay to the County had the Waste Disposal Covenant not been breached, which shall be calculated by( x) subtracting the number of tons actually delivered during the month(s) of the breach from the number of tons that were delivered during the same month( s) closest in time when there was no such breach, even if such months) closest in time was prior to the Term, and( y) multiplying such amount by the Contract Rate in effect at the time of such breach( or any higher rate with respect to which the County has provided notice pursuant to Section 4. 2). In the event that the County terminates the Waste Disposal Agreement as a result of such breach, the damages due as a result of such termination shalt be equal to ( aa) the average monthly deliveries by the City for the twelve months, prior to the commencement ofthe breach multiplied by( bb) the Contract Rate in effect at the time of such breach( or any higher rate with respect to which the County has provided notice pursuant to Section 4. 2), multiplied by( cc) the number of months that would have remained in the Term of the Agreement had the termination not occurred. The parties recognize that if the City fails to meet its obligations hereunder, the County will suffer damages and that it is and will be impracticable and extremely difficult to ascertain and determine the exact amount of such damages.

Therefore, the parties agree that the damages specified above represent a reasonable estimate of the amount of such damages, considering all of the circumstances existing on the date hereto, including the relationship of the sums to the range of harm to the County that reasonably could be anticipated and anticipation that proof of actual damages would be costly or inconvenient. In signing this Agreement, each parry specifically confirms the accuracy of the statements made above and the fact that each party had ample opportunity to consult with legal counsel and obtain an explanation of this liquidated damage provision at the time that this Agreement was made.

F) Legal Challenges to Franchise System. The City shall use its best efforts to preserve, protect and defend its right to exercise and comply with the Waste Disposal Covenant against any challenge thereto, legal or otherwise ( including any lawsuits against the City or the County, whether as plaintiff or defendant), by a t0
Execution Copy
ITEM 6.5 - Attachment A
Franchise Hauler or any other person, based upon breach of contract, violation oflaw or any other legal theory. The City shall bear the cost and expense of any such Legal Proceeding or other challenge; In the event any such Legal Proceeding relating to the Waste Disposal Covenant or the City' s exercise thereof establishes in a final determination that such covenant or exercise thereof is void, unlawful or unenforceable, or if any Franchise Hauler fails to deliver Controllable Waste to the Disposal System in breach of its franchise with the City on the grounds that a judicial determination made by any court or other Applicable Law has rendered its obligation to deliver Controllable Waste to the Disposal System void, unlawful or unenforceable on any legal grounds, with the result that actual waste deliveries to the Disposal System fall below the Cumulative Tonnage Targets, the County shall be entitled to avail itself ofthe remedies described in Section 4, 2( B) hereof.

G) Franchise Haulers. The City shall compile and provide the Department with the following information concerning all Franchise Haulers; name, address and phone number; identification number; area of collection and transportation; and franchise and permit terms.

H) Waste Information System, The City shall cooperate with the Department in collecting information and otherwise monitoring Franchise Haulers in order to assure compliance with this Agreement. Such information may include, to the extent practicable, data pertaining to Controllable Waste collected, transported, stored, processed and disposed of, Recycled City Acceptable Waste collected, transported, stored, processed and marketed or disposed of, Franchise Haulers' franchise, permit or license terms, collection areas, transportation routes and compliance with Applicable Law; and all other information which may reasonably be required by the Department in connection with this Agreement, The City agrees to include in any revised franchise, contract, license or permit or other authorization granted to Franchise Haulers an obligation ofthe Franchise Hauler to provide to the County information relating to the Controllable Waste collected by such Franchise Hauler,. including origins from which such Controllable Waste was collected, tonnage by type of load ( residential, commercial, roll-off box), customer service levels, tonnage delivered by transfer station or material recovery facility utilized, and other related information.
1) City Actions Affectin>; County. The City agrees to carry out and fulfill its responsibilities under this Agreement and Applicable Law so as to permit full and timely compliance by the County with its covenants and agreements with the State. In particular, the City agrees not to conduct, authorize or permit any disposal services for Controllable Waste to be provided in competition with the Disposal Services provided by the County hereunder, and not to take or omit to take any action with respect to Controllable Waste or its collection, transportation, transfer; storage, treatment or disposal that may materially and adversely affect the County' s ability to achieve such timely compliance. Notwithstanding the foregoing, the City shall not be required to deny any permit or license or refuse to grant any approval while exercising its police powers.

J) No Right of Waste Substitution. Nothing in this Agreement shall authorize or entitle the City to deliver or cause the delivery to the Disposal System of Acceptable Waste originating from or generated outside the jurisdiction of the City, nor obligate the County to receive or dispose of any such Acceptable Waste, The City shall not assign in whole or in part its right to deliver or cause to be delivered Controllable Waste to the County hereunder, and shall not permit any Acceptable Waste originating from or generated outside the jurisdiction of the City to be substituted for Controllable Waste for any purpose hereunder.

K) Annexations and Restructuring. Itis the intention of the parties that this Agreement and the obligations and rights of the City hereunder, including particularly the Waste Disposal Covenant and the Contract Rate, shall, to the extent permitted by Applicable Law, extend to any territory annexed by the City( or any territory with respect to which the City assumes, after March 30, 2008, solid waste management responsibility from a Sanitary District or other public entity) and shall bind any successor or restructured Governmental Body which shall assume or succeed to the rights ofthe City under Applicable Law.

SECTION 3. 2 PROVISION OF DISPOSAL SERVICES BY THE COUNTY.

A) Service Covenant. Commencing on the Commencement Date, the County shall provide or cause the provision ofthe service of( 1) receiving and disposing of all Controllable Waste at the Disposal System or such other facilities, including transfer stations, as the County may determine to use), ( 2) disposing in accordance with subsection 3. 2( C) hereof of Controllable Waste which, at any time and for any reason, is in excess 11 Execution Copy
ITEM 6.5 - Attachment A
of the disposal capacity of the Disposal System, and ( 3) in accordance with subsection 3. 3( C) hereof, disposing of Unacceptable Waste inadvertently accepted at the Disposal System. The County, to the maximum extent permitted under Applicable Law, shall use its best efforts to keep the Olinda Alpha, Prima Deshecha and Frank R. Bowerman Landfills open for the receipt of waste for disposal or transfer of Controllable Waste pursuant to this Agreement.

The County shall do and perform all acts and things which may be necessary or desirable in connection with its covenants in this subsection, including without limitation all planning, development, administration, implementation, construction, operation, maintenance, management, financing and contract work related thereto or undertaken in connection therewith. The County shall exercise all reasonable efforts to minimize the costs incurred in complying with the Service Covenant consistent with its responsibilities hereunder and under this Agreement, Applicable Law and prudent solid waste management practice and environmental considerations.

B) Particular Facilities. The Department and the City shall consult and cooperate in determining whether and to what extent from time to time other landfills other than that primarily used by the City shall be utilized to receive Controllable Waste. The Department shall immediately advise the City by telephone of any situation, event or circumstance which results in the partial or complete inability of the County to receive Controllable Waste at any particular landfill within the Disposal System, its effect on the County' s ability to perform its obligations hereunder; and the County' s best estimate of the probable duration.. The Department shall confirm such advice in writing within 24 hours of the occurrence of any such inability. The County shall use its best efforts to resume normal operation of the landfill primarily used by the City as . soon as possible. In the event of a temporary material increase in average daily deliveries of Controllable Waste from the City which the County reasonably believes could result in the permitted daily disposal capacity limit to be exceeded with respect to a particular landfill within the Disposal System, the County shall have the right to redirect the increased Controllable Waste to another Landfill within the Disposal System for the duration of the increase in average daily deliveries; provided, however, that in such circumstances the County shall utilize reasonable efforts to first redirect waste which is not Controllable Waste.

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

SECTION 33 COUNTY RIGHT TO REFUSE WASTE.

A) Right of Refusal. Notwithstanding any other provision hereof, the County may refuse delivery of.
1) Hazardous Waste;
2) Controllable Waste delivered at hours other than those provided in Section 3. 5 hereof;
3) Waste that does not constitute Acceptable Waste;
4) Waste that is delivered by any party which has not executed a Waste Disposal Agreement; and
5) Controllable Waste consisting primarily of construction and demolition debris or inerts which may cause a particular facility' s daily tonnage limit to be exceeded. 12 Execution Copy
ITEM 6.5 - Attachment A
B) Identification of Unacceptable Waste. The Department shall have the right( but not the duty or the obligation) to inspect the vehicles of all Franchise Haulers delivering material to the Disposal System, and may require that the Franchise Hauler remove any Unacceptable Waste from such vehicle before it is unloaded.

If the Department determines that it is impractical to separate Controllable Waste from Unacceptable Waste in any vehicle, or if the Franchise Hauler delivering such waste is unwilling to make such separation, or if any vehicle is carrying waste which may spill or leak, then the Department may reject the entire vehicle, and the City shall forthwith remove or cause the removal ofthe entire delivery from the Disposal System. The Department may take all reasonable measures to prevent waste from being blown or scattered before and during unloading. The City shall cause the Franchise Haulers to observe and comply with Applicable Law, the operating rules and regulations of the Department, and the provisions of this Agreement prohibiting the delivery of Unacceptable Waste to the Disposal System.

C) Hazardous Waste and Hazardous Substances. The parties acknowledge that the Disposal System has not been designed or permitted, and is not intended to be used in any manner or to any extent, for the handling, transportation, storage or disposal of Hazardous Waste or Hazardous Substances, Neither the County nor the City shall countenance or knowingly permit the delivery of Hazardous Waste or Hazardous Substances to the Disposal System.

D) Disposal of Unacceptable Waste and Hazardous Waste. If Unacceptable Waste or Hazardous Waste is discovered in a vehicle at any landfill within the Disposal System, the driver of the vehicle will not be permitted to discharge the Load. If a vehicle is observed unloading Unacceptable Waste or Hazardous Waste in the tipping area of a landfill within the Disposal System Department personnel will use reasonable efforts to assure that such material has been characterized, properly secured and its disposition resolved. The return or reloading onto the delivery vehicle of any Hazardous Waste, Prohibited Medical Waste or other waste requiting handling or transportation shall be conducted in accordance with Applicable Law. Whenever Hazardous Waste is detected at any landfill within the Disposal System, the Department shall take immediate action in accordance with Applicable Law.

E) Source- Separated Household Hazardous Waste. The County shall maintain, as part of the Disposal System,. a Source- Separated Household Hazardous Waste Disposal System for the disposal of SourceSeparated Household Hazardous Waste. The disposal service provided by such system shall constitute part of the Disposal Services, and shall be available to Participating Cities as part of the Contract Rate. The. County may impose additional fees and charges for services relating to Source- Separated Household Hazardous Waste with respect to cities which are not parties to a Disposal Agreement. The County may provide for the expansion, contraction or modification of the Source- Separated Household Hazardous Waste Disposal System and its services to the extent necessary to ensure the Disposal System' s viability; provided,. however, if the County chooses to reduce services, the County shall nonetheless continue to expend funds for the Source- Separated Household Hazardous Waste Disposal System each year during the term of this Agreement in an amount at least equal to the amount of funds expended for the Source- Separated Household Hazardous Waste Disposal System during fiscal year 2006- 07 as adjusted by changes in the Producer Price Index, SECTION 3. 4 UNINCORPORATED AREA ACCEPTABLE WASTE. Commencing on the Commencement Date, the County in accordance with Applicable Law shall provide or cause to be provided the service of disposing of non-recycled Acceptable Waste originating or generated within the Unincorporated Area and, with respect to such waste, shall comply with the Waste Disposal Covenant as if the County constituted a City subject to the Waste Disposal Covenant hereunder. Rates charged by the County for the disposal of each class of non- recycled Acceptable Waste generated in the Unincorporated Area shall be the same as the Contract Fee charged for the disposal of each class of Controllable Waste. The County shall use its best efforts to preserve, protect and defend its right to exercise and comply with the Waste Disposal Covenant( with respect to non- recycled Acceptable Waste generated in the Unincorporated Area) against any challenge thereto, .legal or otherwise, by a Franchise Hauler or any other person, based upon breach of contract, violation oflaw or any other legal theory. The County shall bear the cost and expense of any such Legal Proceeding or other challenge ( with respect to non-recycled Acceptable Waste generated in the Unincorporated Area). 13 Execution Copy
ITEM 6.5 - Attachment A
SECTION 3. 5 MISCELLANEOUS OPERATIONAL MATTERS.

A) Operating Hours. The County shall keep the Disposal System open for the receiving of Controllable Waste during such regular operating hours as may be established by the Department in the operating rules and regulations applicable to the Disposal System. The County shall utilize best efforts to maintain substantially similar hours, as were in effect on January 2, 2009, for the receipt of waste through the term of this Agreement( subject to Applicable Law).

B) Scales and Wei hing. The Department shall operate and maintain permanent scales at the Disposal System. The Department shall weigh all vehicles delivering waste by or on behalf of the City( whether or not the County accepts such waste) and prepare a daily weight record with regard to such delivery, C) Service Coordinator. The County and the City each shall designate in writing thirty days prior to the expected Commencement. Date a person to transmit instructions, receive information and otherwise coordinate service matters arising pursuant to this Agreement ( each a " Service Coordinator"). Either party may designate a successor or substitute Service Coordinator at time by notice to the other parry.

D) Review of Records. Each party may review the other party' s books and records with respect to matters relevant to the performance by either party under this Agreement or otherwise related to the operation of the Disposal System to the extent allowed under the California Public Records Act( interpreted as if the parties to this Agreement were natural persons for purposes of the Public Records Act).

SECTION 3. 6 OTHER USERS OF THE DISPOSAL. SYSTEM.

A) On or Before 1 2009 . On or before [ 120 DAYS AFTER BOARD APPROVAL], the County shall have the right to enter into waste disposal agreements with Orange County entities with respect to Acceptable Waste which was originally discarded by the first generator thereof within the geographical limits of the County, including other cities in the County, Sanitary Districts, Transfer Stations and Independent Haulers, which waste disposal agreements shall have terns and provisions substantially identical to the terms and provisions of this Agreement; provided, however, that in no event shall such agreements have terms and provisions more favorable than the terms and provisions ofthis Agreement( including but not limited to the Contract Rate and availabilityof disposal capacity).

B) After f 2009. After [ 120 DAYS AFTER BOARD APPROVAL], the County shall have the right to enter into waste disposal agreements with Orange County entities, including any city, Sanitary District, Transfer Station and Independent Hauler, or otherwise accept Acceptable Waste from such parties, but only within the limitations contained in this Section. Any such agreement or waste acceptance agreement must provide that the party delivering waste shall pay a Posted Disposal Rate at least 10% higher than the Contract Rate unless the County determines it is in the best interest of the Disposal System to establish a Posted Disposal Rate less than 10% higher than the Contract Rate. In no event shall the Posted Disposal Rate be equal to or. less than the Contract Rate. In addition, the County shall reserve the right in any such waste disposal agreement at any time, to the extent permitted by Applicable Law, to refuse to receive and dispose ofAcceptable Waste from any city, County Sanitary District, Transfer Station and Independent Hauler if and to the extent that such receipt and disposal may materially and adversely affect the ability of the County to comply with its obligations to the Participating Cities under the Disposal Agreements to which each is party.

C) Receipt of Imported Acceptable
Waste on a Contract Basis. The County shall have the right to enter into a contract or other agreement with any municipal or private non- County entity for the delivery of Imported Acceptable Waste on terms and conditions that the County determines to be necessary to ensure and enhance the viability of the Disposal System for the benefit of the County and the Participating Cities and to generate Net Import Revenues. The County certifies that in its good faith judgment the contractor other agreement for the delivery of such waste will not materially and adversely affect the ability of the County to receive and dispose of Acceptable Waste from the Participating Cities in accordance with the applicable Disposal Agreements throughout the Term thereof. The term of any such agreement for the disposal ofImported Acceptable Waste shall end by the later to occur of(i) December 31, 2015 or( ii) the date on which County general purpose revenues are no longer expended to pay debt service on the Orange County Public 14 Execution Copy
ITEM 6.5 - Attachment A
Financing Authority Lease Revenue Refunding Bonds Series 2005, but in no event later than the last day of the fiscal year commencing July 1, 2015.

D) Self Haulers. The City and the County acknowledge that Self-Haulers shall be entitled to deliver Self-Hauled Waste to the Disposal System, on a non- contract basis, at the Posted Disposal Rate. Such SelfHaulers shall not be entitled to dispose of Acceptable Waste for the Contract Rate.

E) Application and Use of Revenues From Other Users. All revenues received by the County from the disposal of County Acceptable Waste by the Disposal System, and alI revenues received by the County from the disposal of Imported Acceptable Waste by the Disposal System, shall be deposited by the County in the County OC Waste & Recycling Enterprise Fund and shall constitute revenues of the Disposal System.

Pursuant to the County' s Plan of Adjustment, the County is entitled to receive net revenues ( after payment of all costs attributable to the acceptance of such Imported Acceptable Waste at the Disposal System) (" Net Import Revenues") from the disposal of Imported Acceptable Waste by the Disposal System, and such Net Import Revenues may be used for the payment of bankruptcy related obligations in accordance with the Plan ofAdjustment.

Costs attributable to the disposal of Imported Acceptable Waste include deposits to the Environmental Fund, deposits to closure and postclosure reserves, City host fees ( if applicable), incremental operating costs ( such as manpower expenditures, equipment, services and supplies expenditures), state surcharges, and a pro rata share of capital project costs. The parties acknowledge that their intention in determining to allow the importation of Imported Acceptable Waste for disposal by the Disposal System is to stabilize the Contract Rate at rates below those which would otherwise prevail in the absence of such importation.

SECTION 3. 7 COUNTY PROVISION OF WASTE DIVERSION SERVICES.

A) County-Wide Recycling Services, This Agreement does not require the County to provide for any source reduction, materials recovery, recycling, composting, or other waste diversion services by the County nor any payment therefor by the City, by Franchise Haulers or by ratepayers; provided, however, any County-Wide Recycling Services may be funded through the County OC Waste& Recycling Enterprise Fund. Any such recycling services may be expanded, contracted or modified by the County at any time in its sole discretion.

S) Separate City- County Diversion Service Agreements. Nothing in this Agreement is intended to limit the right of the County to enter into a separate agreement with the City or any other person to provide source reduction, materials recovery, recycling, composting or other waste diversion services. Any such program conducted by the County, whether in participation with the City, any other of the Participating Cities, other Cities, Sanitary Districts, Transfer Stations, Independent Haulers, Unincorporated Area or non- County entity, shall be operated, managed and accounted for as a program separate and distinct from the Disposal Services program contemplated by the Disposal Agreements and shall not be funded through the general revenues of the Disposal System.

ARTICLE IV

CONTRACT RATE
SECTION 4. 1 CHARGING AND SECURING PAYMENT OF CONTRACT RATE. The City acknowledges that the County shall have the right to charge and collect a Contract Rate for the acceptance and disposal of Controllable Waste delivered to the System by any Franchise Hauler. The Contract Rate shall be calculated and established, and may be modified, as provided in Section 4. 2 hereof. In addition, the City acknowledges that the County shall have the right to establish as part of the operating rules and regulations reasonable measures to secure the payment of all Contract Rates.

SECTION 4. 2 CONTRACT RATE.

A) Establishment of Contract Rate. The Contract Rate payable by each Franchise Hauler shall be( x)$22.00 per ton from the Commencement Date through June 30, 2010, and( y)$ 29.95 per ton on and after July 1, 2010, in both cases contingent on the delivery to the Disposal System of an amount of Acceptable Waste at 15 Execution Copy
ITEM 6.5 - Attachment A
least equal to the Cumulative Tonnage Targets identified in Appendix 2, and subject to adjustment necessary to reflect the circumstances set forth in this Section 4.2:
i) increased costs incurred by the County ( in excess of available insurance proceeds) due to the occurrence of one or more Uncontrollable Circumstances, other than Changes in Law; ii) costs incurred by the County ( in excess of available insurance proceeds and amounts available in the Environmental Fund for such purposes) remediating environmental conditions at the Disposal System or inactive or closed disposal sites in the County, which, if uncorrected, could give rise to potential claims under CERCLA or related federal or state statutes, including costs incurred providing indemnification to any Participating City pursuant to subsection 7. 3; or
iii) tonnage shortfalls to the extent permitted by Sections 4. 2( B); iv) average annual inflation prior to July 1, 2010 in excess of the levels set forth in Section 4. 2(1) and escalation pursuant to Section 4. 2( F); v) increased costs incurred by the County ( in excess of available insurance proceeds) due to the occurrence of one or more Changes in Law; or vi) Capital Costs in excess of the Capital Costs at any point in time during the term hereof exceeding the Cumulative Capital Costs set forth in Appendix 3.

Prior to adjusting the Contract Rate as a result of any of the circumstances described in clauses( i),( ii) or( iii) above, the County shall utilize the following remedies in the following order of priority:
x) reduce the costs of operating the Disposal System to the extent practicable;. and y) utilize Unrestricted Reserves to pay costs of the Disposal System.

The County will not be required to utilize such remedies prior to adjusting the Contract Rate as a result of any of the circumstances described in clauses( iv),( v) or( vi) above.

Any adjustments to the Contract Rate permitted by this Section shalt be calculated by the County to reflect the actual costs or expenses of addressing the circumstance or circumstances pursuant to which the adjustment is authorized.

The County agrees that it will evaluate the feasibility of long tern financing for significant capital costs where appropriate.

B) County Acceptable Waste Shortfall. In the event that the actual amount of County Acceptable Waste delivered to the Disposal System at the end of any Contract Year is less than the Cumulative Tonnage Target for such Contract Year for County Acceptable Waste, as specified in Appendix 2, the County shall utilize the following options, in the following order of priority, in order to remedy any adverse effects of such tonnage shortfall:
i) reduce the costs of operating the Disposal System to the extent practicable; ii) utilize Restricted Reserves described in clause( iii) of Section 4. 5 to pay costs of the Disposal System;
iii) utilize Unrestricted Reserves to pay costs ofthe Disposal System; and iv) adjust the Contract Rate.

In the event that implementation of the steps described abovedoes not result in sufficient revenues to satisfactorily address the shortfall in tonnage, the County shall have the right' to terminate the Agreement on 60 days written 16 Execution Copy
ITEM 6.5 - Attachment A
notice to the City. In addition, in the event that actual deliveries to the Disposal System exceed the Cumulative Tonnage Target as of the end of any Contract Year, the City acknowledges the County shall have the right to establish reserves intended to reflect the potential for lower than expected annual waste deliveries in subsequent years, and that any such reserves shall constitute" Restricted Reserves".

C) [ RESERVED]
D) Interim Use of Remedies. In the event that, during any Contract Year, waste deliveries to the Disposal System are 25% or more below delivery projections for such Contract Year with the result that the County determines it is unlikely that the Cumulative Tonnage Target will be achieved as of the end of such Contract Year, the County may utilize the remedies described in Section 4. 2( B) prior to the end of such Contract Year; provided, however, that if at the end of such Contract Year, the Cumulative Tonnage Target is actually met, the County shall reimburse any adjustments to the Contract Rate made pursuant to this Section to Participating Cities.

Such reimbursement may be given as a credit or adjustment to the Contract Rate for future deliveries, rather than a lump sum payment.

E) Special Charges, Notwithstanding Section 4. 2( A), the County shall have the right to impose special charges for the receipt of hard to handle materials, such as bulky materials, construction and demolition debris, tree stumps and sludge. Such special charges shall be calculated to reflect the reasonable incremental costs to the County of accepting such hard to handle materials. In addition, in the event that the Board of Supervisors of the County makes a determination to implement a facility ( including but not limited to atransfer station, landfill, conversion technology facility, or a materials recovery or processing facility), which facility would be intended to provide for disposal. alternatives after the closure of one or more of the landfills currently operating within the Disposal System, the County may impose an additional charge of$ 0. 50 per ton of Acceptable Waste in order to pay the costs ofthe study, development, planning, construction and/or operation of such facility.

Adjustments pursuant to this Section 4.2(E) shall not require compliance with the provisions of Section

4. 2( I).

F) Escalation. The Contract Rate shall be adjusted each July 1, beginning July 1, 2011. The change will be equal to the positive percentage change in the Consumer Price Index— All Urban Consumers, U.S. city average, All items, Not Seasonally Adjusted, Series ID CUUROOOOSAO (" CPI") as measured from the October 21 months prior to the rate adjustment to the October immediately preceding the rate adjustment. For example: The July 1, 2011 rate adjustment shall be based upon the index change from October 2009, to October 2010, referred to as year 1 and year 2 respectively in the following example .

Formula to calculate percentage change in the Contract Rate:

Step 1:

October Year 2 CPI
October Year 1 CPI ] '
1 =% increase in Contract Rate
Step 2: Current Contract Rate x( 1+% increase in Contract Rate)= Contract Rate as of July 1 Year 2 On each April 1, commencing April 1,. 2011, the County shall provide the City with notice of the adjustment to the Contract Rate to be effective the following July 1. Such notice shall contain the calculation of the adjustment set forth above. The County will calculate the new Contract Rate each year.

In the event that the change in the CPI is negative, no rate adjustment will be made for that year. No adjustment under this Section 4.2(F) will take place until the October CPI index surpasses the index level as of the October immediately preceding the last annual rate adjustment pursuant to this Section 4. 1( F), which will be considered" year I" in calculating the change in the Contract Rate. 17 Execution Copy
ITEM 6.5 - Attachment A
For example, if the CPI is measured as follows: October 2009= 205, October 2010= 204, October 2011— 201, October 2012—208, then there would be no adjustment in July 2011, or July 2012, and an adjustment equal to the change from 205 to 208 would be implemented on July 1, 2013.

Adjustments pursuant to this Section 4. 2( F) shall not require compliance with the provisions of Section

4. 2( I).

G) Adjustment Resuitine from Increased Fees. In addition to the other adjustments specified herein, the Contract Rate shall be adjusted to reflect the imposition of new fees or increase in existing fees relating to the disposal of Controllable Waste imposed by state, federal or other agencies( i.e., the State' s Integrated Waste Management fee; which is currently $ 1. 40 per ton). The adjustment shall be equal to the amount of any new or increased fee, and the adjustment shall take effect so as to coincide with the imposition of the new or increased fee.

The County shall provide notice of any increase pursuant to this Section 4. 2( G) as soon as practicable after becoming aware of the imposition of any fees described above.

Adjustments pursuant to this Section 4. 2( G) shall not require compliance with the provisions of Section

4. 2( 1).

H) Calculation of Cumulative Inflation Rate. For purposes of Section 4. 2( A)( iv) for adjustments prior to July 1, 2011, the inflation shall be calculated as the change in the CPT between July of the year of calculation and July 1, 2008. Inflation shall be deemed to exceed the levels set forth below if the ratio between the CPI for July for the year of calculation( calculated in accordance with the formula below) and July 2008 exceeds the ratio corresponding to such year of calculation on the table below. The ratio shall be calculated in accordance with the following formula:

July CPI of calculation year/ CPI for July 2008)
Year ofCalculation Ratio
July 1, 2008 1. 0000
July 1, 2009 L0356
Jul 1, 2010 1. 0723
In the event the CPI is no longer published during the term of this Agreement, such other index identified by the Bureau of Labor Statistics or otherwise generally accepted as a replacement for CPI shall be used for purposes of this Agreement. In the event of an adjustment to the Contract Rate pursuant to this section 4. 2( H), such adjustment shall be applied to the Contract Rate effective until June 30, 2010, and the Contract Rate effective July 1, 2010.

Adjustments pursuant to this Section 4. 2( I) shall not require compliance with the provisions of Section

4.2( I).

I) Procedure for Rate Adjustments. In the event the County determines that it is entitled to an adjustment of the Contract Rate pursuant to Section 4.2(A) ( other than 4.2( A)( iv)) or Section 4.2( B), it shall utilize the procedures described in this Section 4. 2( I). The County shall be required to provide the City with at least 90 days prior written notice of the adjustment, which notice shall identify the specific event(s) or circumstances which require the adjustment. The notice shall also specify the earliest date on which the County Board of Supervisors shall consider the proposed adjustment. At least 45 days prior to such meeting of the Board of Supervisors,. the County shall provide the City with a report which shall contain the following information: a description of the specific event( s) or circumstances which require the adjustment; a description ( including cost estimates) of any activities ( which may include, but not be limited to capital improvements to the Disposal System) required in order to remedy such event or circumstance; certification by the County that it has implemented the remedies described in Section 4. 2(A) or ( B) prior to requiring the rate adjustment; and a description of the methodology used by the County to calculate the adjustment to the Contract Rate( hereinafter the" County Report").

In the event the City disputes the adjustment, it shall provide the County with a written description of the reason for the dispute at: least 10 days prior to the meeting of the Board of Supervisors identified in the initial notice of the County ( hereinafter the " City Report"). The City Report shall be provided to the Board of Supervisors for 18 Execution Copy
ITEM 6.5 - Attachment A
consideration at such meeting in connection with the proposed rate adjustment. At any time from and after the date that the County provides the City with the County Report, upon the request of either party, the City and County shall meet and confer in good faith to resolve any dispute that may arise regarding the proposed adjustment to the Contract Rate. In any such meeting, the County shall be represented by the Director of the Department or his or her designee. In the event the Board of Supervisors approves all or a portion of the proposed rate adjustment, such rate adjustment shall become effective on the date identified in the initial notice sent by the County regardless of whether or not the procedures in Section 42(J) are utilized, but subject to potential reimbursement pursuantto clause( 11) of Section 4. 2( J).

J) Procedure for Expedited Judicial Review of Contested Rate Adjustment. In the event that, within 30 days after the effective date of any Contract Rate adjustment made pursuant to Section 4. 2( I), Participating Cities which, in the aggregate, accounted for more than 50% of the County Acceptable Waste delivered to the County System in the twelve months preceding the Contract Rate adjustment,. provide notice to the County of their election to utilize the procedures described in this Section 4.2( J), then the provisions of this Section 4.2( J) shall be utilized by such Participating Cities and the County to resolve the dispute over the Contract Rate Adjustment. In the event that, Participating Cities which have delivered the amount of waste contemplated in the preceding sentence do not provide notice to the County of such election, the County shall have no obligation to participate in or cooperate in the implementation ofthe procedures described below in this Section 42( J). 1) In order to pursue the expedited judicial determination described in this Section the ' Expedited Rate Determination"), the Participating Cities which have made the election described in the paragraph above ( the" Challenging Cities") must commence a civil action for breach of contract ( the " Action") in the Orange County Superior Court within 45 days of the date on which the Board of Supervisors approves the challenged adjustment to the Contract Rate.
2) Within two ( 2) days of filing the Action, the Challenging Cities shall personally serve on the County Counsel both the summons and complaint, and a stipulation and request for the entering of an order incorporating all of the procedural provisions relating to the Expedited Rate Determination as set forth in this Section 4. 2( J)( such stipulation and request for order is hereinafter referred to as the" Expedited Rate Determination Stipulation"). The Expedited Rate Determination Stipulation shall be signed by each of the Challenging Cities. 3) Within fifteen( 15) days of the date of service upon the County of the summons and complaint, and Expedited Rate Determination Stipulation, the County Counsel shall execute the Expedited Rate Determination Stipulation and personally serve upon the Challenging Cities through their counsel of record the Expedited Rate Determination Stipulation and its answer to the complaint inthe. Action. The Stipulation shall also include a waiver by each of the parties of their right to a jury trial of the issues raised in the Action. The City and the County mutually agree that the duty to execute the Expedited Rate Determination Stipulation and comply with the procedures set forth for Expedited Rate Determination in this Section 4.2( J) shall be, and are hereby deemed to be, ministerial duties which the law specifically enjoins upon each of them, and shall be subject to enforcement by the parties herein pursuantto Code of Civil Procedure Section 1085, et seq.; or by means of a complaint for specific performance.
4) Within three( 3) days of the date of service by the County upon the Challenging Cities of the fully signed Expedited Rate Determination Stipulation, the County and the Challenging Cities shall jointly make ex paste application to the Orange County Superior Court in the Action for the issuance of the order contained in the Expedited Rate Determination Stipulation. At such ex parte application, the County and the Challenging Cities shall also. seek to confirm with the Orange County Superior Court the briefing schedule, and request a hearing date in accordance with the procedures set forth in this Section 4.2( J). 5) Within ten( 10) days of the date of service by the County upon the Challenging Cities of the answer in the Expedited Rate Determination, the Challenging Cities shall file with the court and personally serve upon the County the Challenging Cities' opening brief and the Record in the Expedited Rate Determination. The opening brief shall not exceed 15 pages in length. The Record shall consist of, and be limited to, the record of the proceedings before the Board of Supervisors with respect to the adjustment of the Contract Rate, including but not limited to the County Report and the City Report by each or any of the Challenging Cities pursuant to Section 4. 2( I),any materials filed or lodged with the Board of Supervisors and the Orange County 19 Execution Copy
ITEM 6.5 - Attachment A
Waste Commission, the transcript of the proceedings of the Board of Supervisors meeting and the Orange County Waste Commission, the minutes of the Board of Supervisors and the Orange County Waste Commission meeting, and the resolution and/ or other documentation evidencing action by the Board of Supervisors and the Orange County Waste Commission to adjust the Contract. Rate pursuant to Section 4. 2( A) or ( B). The record shall also include the most recent reports prepared pursuant to Sections 4. 6 and 4. 7. The Expedited Rate Determination shall be decided solely on the evidence inthe Record, and no extrinsic evidence shall be submitted to or considered by the court.
6) Within ten ( 10) days of service by the Challenging Cities of their opening brief and the Record,. the County shall file and personally serve upon the Challenging Cities the County' s opposition brief. The opposition brief shall not exceed 15 pages in length. 7) Within five( 5) days of service by the County upon the Challenging Cities of the opposition brief,the Challenging Cities may file and personally serve upon the County a rebuttal brief,which shall not exceed 10 pages in length.
8) The trial of the Expedited Rate Determination shall be conducted as a hearing which shall be conducted at the date set by the court in the ex parte hearing conducted pursuant to Section 4.2( 1)( 4), or such other date and time ordered by the court. Ifthe court requests the parties to prepare supplemental briefs in response to any question or issue raised by the court, the parties may do so. 9) The standard of review for the Expedited Rate Determination shall be the preponderance of the evidence based upon the Record. The burden of proof shall be borne by the Challenging Cities, and the burden of proof shall be the same as with respect to a plaintiff in a damages action for breach of contract. Both parties have participated in the drafting of this. Agreement. Accordingly, nothing set forth in this Agreement shall be interpreted or construed for or against either of the parties as a consequence of their participation in the drafting ofthis Agreement.
10) The court shall issue its written statement of decision and enter judgment within thirty ( 30) days ofthe date of the hearing in the Expedited Rate Determination. 11) Ifthe court determines that any portion of the County' s adjusted Contract Rate which is the subject of the Expedited Rate Determination was improperly imposed, the County shall, within 30 days of the date of the statement of decision, reimburse to the City the amount improperly imposed, together with interest calculated at the percentage rate that does not constitute usury under California laws. Such reimbursement may be made in the form of a reduction in the Contract Rate for a future period ( not to exceed twelve months) reasonably calculated to provide full reimbursement of the amounts described above. 12) If for any reason the court does not sign the order contained in the Expedited Rate Determination Stipulation, the City shall, within 30 days of the court' s denial of such requested order, file with the court and personally serve upon the County a motion for summary judgment and/ or motion for judgment on the pleadings, in accordance with Code of Civil Procedure Section 437( c) and 438. By executing this Agreement, the parties hereby stipulate that, in the event that the Challenging Cities file such summary judgment motion and/ or motion for judgment on the pleadings, the Record shall be deemed to have been incorporated into the complaint and answer filed by the Challenging Cities and the County, and no evidence outside of the Record is relevant or material to the. dispute raised in the Expedited Rate Determination. The briefing schedule and hearing on such motion for summary judgment and/ or motion for judgment on the pleadings shall be in accordance with Code of Civil Procedure Section 437( c). The Challenging Cities and the County shall be bound by all of the requirements and restrictions set forth in Section 4.2( J) that are not in conflict with this paragraph( 12). 13) In the event that the court both does not sign the order contained in the Expedited Rate Determination Stipulation and either does not hear or. does not issue a ruling on the merits on the motion for summary judgment and/ or judgment on the pleadings which is dispositive of the issues, claims and causes of action in the complaint filed by the Challenging Cities, the County and the Challenging Cities shall, within twenty days following the issuance of the Court' s order or decision not to honor the parties' stipulation or not to hear the parties' motion for summary judgment, make application to the Presiding Judge of the Orange County 20 Execution Copy
ITEM 6.5 - Attachment A
Superior Court for an expedited hearing or trial date. The Challenging Cities and the County shall be bound by all of the requirements and restrictions set forth in Section 4. 2(.1) that are not in conflict with this paragraph( 13). In this regard, and without limiting the foregoing, the only evidence to be presented at the hearing or trial shall be the Record, no testimony shall be presented at the hearing or trial; and both the County and the Challenging Cities waive all rights to a jury trial, to any reconsideration ofthe decision of the court, to a new trial after the court renders a decision, and to any appeal or review of the decision ofthe court.

SECTION4. 3 RESPONSIBILITY FOR PAYMENT OF THE CONTRACT RATE.

A) Payment by City. In the event and to the extent ( 1) the City uses municipal collection forces directly for the haulage of Controllable Waste to the Disposal System or ( 2) the City uses non-municipal Franchise Haulers for collection but nonetheless elects to pay the Contract Rate from City revenues, the City, as its own Franchise Hauler, shall have direct responsibility for payment of the Contract Rate, and shall take all such budgetary, appropriation and other action as may be necessary to provide for the timely payment of the Contract Rate. Such action may include, depending upon the means authorized by the City to provide for such payment, the levy and collection of general or special taxes, the imposition of benefit assessments, or the collection of user fees, generator charges or other similar impositions for municipal solid waste disposal. The City shall use best efforts in accordance with Applicable Law to levy and impose all such taxes, assessments, fees or charges, and will take all steps, actions and proceedings for the enforcement, collection and payment of alI such amounts which shall become delinquent, to the full extent permitted by Applicable Law. To the extent provided in Section 7. 5 hereof, the obligation of the City for such Contract Rates shall be limited to amounts in the City' s Solid Waste Enterprise Fund.

From the Commencement Date to the date of expiration or termination of this Agreement, the obligation to the City to pay the Contract Rate, to the extent the City rather than Franchise Haulers is responsible directly for payment and provided that the Service Covenant has been complied with, shall be absolute and unconditional and shall not be subject to delay or diminution by reason of set-off, abatement, counterclaim, existence of a dispute or otherwise.

B) Payment by Franchise Haulers. With respect to Controllable Waste delivered by Franchise Haulers other than City municipal collection forces, the obligation to pay the Contract Rate shall rest with such Franchise Haulers and not with the City and, unless the City, has agreed with the County to be responsible for Franchise Hauler payments, the City shall not be financially responsible for any delay or failure by such Franchise Hauler to pay the Contract Rate or any portion thereof when due. In the event of any such failure, the County and the City shall cooperate with each other and use their best efforts to obtain timely payment. Such efforts by the County may include, as appropriate, requiring cash payments for disposal rights from such Franchise Hauler and bringing a legal proceeding for payment and damages. Such efforts by the City may include, as appropriate, legal proceedings to suspend, revoke or terminate the Franchise Hauler' s franchise, permit or license rights.

C) Disputes. If the City or the Franchise Hauler disputes any amount billed by the County in any Billing Statement, the City or the Franchise Hauler shall nonetheless pay the billed amount and shall provide the County with written objection within 30 days ofthe receipt of such Billing Statement indicating the amount that is being disputed and providing all reasons then known to the City or the Franchise Hauler for any objection to or disagreement with such amount. I£the City or the Franchise Hauler and the County are not able to resolve such dispute within 30 days after the City' s or the Franchise Hauler' s objection, either party may pursue appropriate legal remedies.

SECTION 4. 4 BILLING OF THE CONTRACT RATE. The County shall continue to bill Contract Rates after the Commencement Date, in the same manner as it has customarily billed tipping fees. Subject to the other provisions of this Agreement, the County shall have the right to modify or amend such manner of billing on reasonable notice to affected parties.

SECTION 4. 5 RESTRICTED RESERVES. For purposes of this Agreement, ` Restricted Reserves" means cash and other reserves of the Disposal System which are restricted to specific uses or are otherwise being reserved by the County to meet its obligations hereunder throughout the term of the Agreement with respect to the Disposal System pursuant to any Applicable Law, contract, adopted budget, budgetary policy of the County with respect to the Disposal System, or other arrangement. Such cash and other reserves are not required to be deposited in separate accounts or funds in order to constitute " Restricted Reserves" hereunder, and may be commingled with 21 Execution Copy
ITEM 6.5 - Attachment A
Unrestricted Reserves or other funds of the County attributable to the Disposal System. " Restricted Reserves" shall include, but not be limited to, the following:
i) reserves for closure of components of the Disposal System to the extent required by Applicable Law;
ii) amounts reserved by the County for funding of post closure maintenance and monitoring with respect to components of the Disposal System; iii) reserves established to protect the Disposal System against the adverse financial impact of potential decreases in waste deliveries pursuant to Section 4.2( B); iv) amounts reserved to pay the costs of capital improvements with respect to the Disposal System;
v) amounts funded from revenues during the early years of the term of the Agreement reserved to enable the County to provide disposal services for the Contract Rate during the later years of the Agreement;
vi) amounts temporarily held by the County prior to payment to the State or other Governmental Bodies pursuant to Applicable Law ( including any fees or charges payable to the State Integrated Waste Management Board);
vii) reserves required to meet bond covenants pursuant to financing agreements for Disposal System assets to the extent such amounts must be legally separate and distinct from other reserves identified in this Section;
viii) security deposits from landfill deferred payment program users; ix) amounts held by the County in the Environmental Fund( provided, however, that such amounts in the Environmental Fund will be made available and used by the County if required to pay costs relating to environmental remediation or other related costs); x) AB939surcharges;
xi) amounts held by the County in the Corrective Action Fund held pursuant to CCR Title 27 to demonstrate financial assurance to pay for potential groundwater contamination; and xii) an amount equal to three months of budgeted expenses for the Disposal System for the current fiscal year, representing working capital of the Disposal System.

SECTION 4. 6 AUDITED FINANCIAL STATEMENTS. The County shall annually, on or before January I each year, prepare or cause to be prepared and have on file for inspection an annual report for the preceding Contract Year,. accompanied by a certificate of an independent public accountant or of the County Auditor and Controller as to the examination of the financial statements therein ( describing such statements as fairly presenting the information therein in conformity with generally accepted accounting principles) relating to the Disposal System, the Disposal Services, and the fiscal activities of the County OC Waste Disposal Enterprise Fund, and including statements in reasonable detail of the financial condition of the County OC Waste Disposal Enterprise Fund as of the end of the Contract Year and revenue and expenses for the Contract Year.

SECTION 4.7 ANNUAL UPDATE OF TEN- YEAR FINANCIAL PROJECTION. The County shall annually, on or before May 1 of each year, prepare or cause to be prepared, an updated Ten- Year Financial Projection for the Disposal System. Said Financial Projection shall include at least two full years ofprior actual data and ten years of future projections including the following elements:
22 Execution Copy
ITEM 6.5 - Attachment A

1. County Acceptable Waste, in tons;

2. Imported Acceptable Waste, in tons;

3. Revenues and expenditures;

4. Cash fund balances, including all monies in the County Solid Waste Enterprise Fund, with specific delineation of monies in the Environmental Fund, Restricted Reserves, Unrestricted Reserves, and all other funds of the System.

5. Projected liabilities for closure and post closure as well as reasonable reserves for other environmental costs.

The purpose of the Ten-Year Financial Projection is to keep the City fully informed about the future financial condition of the Disposal System. The County shall cause a copy of the Ten- Year Financial Projection to be delivered to the City Manager of the City no later than May 1 of each year. Upon request, the County shall make available to the Cities supporting information related to the ten-year financial projection

ARTICLEV

BREACH, ENFORCEMENT AND TERMINATION
SECTION 5. 1 BREACH. The parties agree that in the event either party breaches any obligation under this Agreement or any representation made by either party hereunder is untrue in any material respect, the other party shall have the right to take any action at law or in equity( including actions for injunctive relief, mandamus and specific performance) it may have to enforce the payment of any amounts due or the performance of any obligations to be performed hereunder. Neither parry shall have the right to terminate this Agreement except as provided in Section 5. 2 and Section 5. 3 hereof or as otherwise provided in this Agreement.

SECTION 5. 2 CITY CONVENIENCE TERMINATION. The City shall have the right to terminate this Agreement in its sole discretion, for its convenience and without cause at any time during the Term hereof upon 90 days' written notice to the County. If the City exercises its rights to terminate the Agreement pursuant to this Section, the City shall pay the County a termination fee equal to the ContractRate in effect at the time of such termination ( or any higher rate with respect to which the County has provided notice pursuant to Section 4. 2) multiplied by the number of tons of City Acceptable Waste delivered to the Disposal System during the preceding twelve months ( or, ifthe City had been in breach ofthe Waste Disposal Covenant during such prior months, such amount as would have been delivered ifthe City had complied with the Waste Disposal Covenant), multiplied by the number of years remaining in the Term of the Agreement.

SECTION 5. 3 TERNIINATION.

A) By City. Except as expressly provided herein, the City shall have no right to terminate this Agreement for cause except in the event of the repeated failure or refusal by the County substantially to perform any material obligation under this Agreement unless such failure or refusal is excused by an Uncontrollable Circumstance; except that no such failure or refusal shall give the City the right to terminate this Agreement for cause under this subsection unless:
1) The City has given prior written notice to the County stating that a specified failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the County and which will, in its opinion, give the City the right to terminate this Agreement for cause under this subsection unless such breach is corrected within a reasonable period of time, and 2) The County has neither challenged in an appropriate forum ( in accordance with Section 5. 5) the City' s conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Agreement nor corrected or diligently taken steps to correct such breach within a reasonable period of time not more than 90 days from the date of the notice given pursuant to clause ( 1) of this subsection ( but ifthe 23 Execution Copy
ITEM 6.5 - Attachment A
County shall have diligently taken steps to correct such breach within such reasonable period of time, the same shall not constitute a breach giving rise to the right of termination for as long as the County is continuing to take such steps to correct such breach).

B) By County. Except as expressly provided herein, the County shall have no right to terminate this Agreement for cause except in the event ofthe repeated failure or refusal by the City substantially to perform any material obligation under this Agreement unless such failure or refusal is excused by an Uncontrollable Circumstance; except that no such failure or refusal shall give the County the right to terminate this Agreement for cause under this subsection unless:
1) The County has given prior written notice to the City stating that a specified failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the City and which will, in its opinion, give the County right to terminate this Agreement for cause under this subsection unless such breach is corrected within a reasonable period of time, and 2) The City has neither challenged in an appropriate forum ( in accordance with Section 5. 5) the County' s conclusion that such failure or refusal to perform has occurred or constitutes a. material breach of this Agreement nor corrected or diligently taken steps to correct such breach within a reasonable period of time not more than 90 days from the date of the notice given pursuant to clause( 1) of this subsection( but ifthe City shall have diligently taken steps to correct such breach within such reasonable period of time, the same shall not constitute a breach giving rise to the right of termination for as long as the City is continuing to take such steps to correct such breach).

SECTION 5. 4 NO WAIVERS. No action of the County or the City pursuant to this Agreement including, but not limited to, any investigation or payment), and no failure to act, shall constitute a waiver by either party of the other party' s compliance with any term or provision of this Agreement. No course of dealing or delay by the County or the City in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof or otherwise prejudice such party' s rights, powers and remedies. No single or partial exercise of( or failure to exercise) any right, power or remedy of the County or the City under this Agreement shall preclude any other or further exercise thereof of the exercise of any other right, power or remedy.

SECTION 5. 5 FORUM FOR DISPUTE RESOLUTION. It is the express intention of the parties that all legal actions and proceedings related to this Agreement or to the Disposal System or to any rights or any relationship between the parties arising therefrom shall be solely and exclusively initiated and maintained in courts of the State ofCalifornia having appropriate jurisdiction.

ARTICLE VI
TERM
SECTION 6. 1 EFFECTIVE DATE AND TERM.

A) Initial Term. This Agreement shall become effective, shall be in full force and effect and shall be legally binding upon the City and the County from the Contract Date and shall continue in full force and effect until June 30, 2020, unless earlier terminated in accordance with its terms, in which event the Term shall be deemed to have expired as of the date of such termination.

B) Option to Renew. This Agreement shall be subject to renewal by mutual agreement of the parties, on or before June 30, 2018, for an additional term of ten years( the" Renewal Term") on the same terms and conditions as are applicable during the Initial Term hereof. The City shall give the County written notice of its irrevocable election to renew this Agreement on or before June 30, 2017. If the parties do not renew this Agreement by June 30, 2018, the Agreement shall expire on June 30, 2020.

C) Contract Rate During Renewal Term. In connection with the parties' right to renew this Agreement for an additional ten- year term pursuant to Section 6. 1( B), the parties shall, on or before June 30, 2018, negotiate an applicable change in the Contract Rate for such renewal term. In determining any revisions to the 24 Execution Copy
ITEM 6.5 - Attachment A
Contract Rate to be applicable during any renewal period, in addition to the circumstances described in Section 4.2( A), the parties may take into consideration the following parameters, including but not limited to:
i) actual cost of operations;
ii) population growth;
iii) increase or decrease in available tonnage;
iv) economic and disposal market conditions in the Southern California region; v) changes in transportation and technology;
vi) closure and expansion of nearby landfills;
vii) capacity of the Disposal System; and
viii) available reserves which are in excess of the amount reasonably required as reserves.

D) Survival; Accrued Rights. The rights and obligations of the parties hereto pursuant to Sections 3. 1( E)(2), 5. 1, 53, 5. 5, 7. 2, 7. 3, 7. 5, 7. 7, 7. 8, 7. 9, and 7. 10 hereof shall survive the termination or expiration of this Agreement,. and no such termination or expiration shall limit or otherwise affect the respective rights and obligations of the parties hereto accrued prior to the date of such termination or expiration. At the end of the Term of this Agreement, all other obligations of the parties shall terminate.

SECTION 6. 2 COMMENCEMENT DATE.

A) Obligations of the Parties Prior to the Commencement Date. The parties acknowledge that the Disposal Agreements may be executed and delivered on different dates and that, except as provided in this subsection, neither the County nor the City shall be obligated to perform its obligations hereunder until the participation threshold provided herein has been met and the other conditions to the occurrence of the Commencement Date have occurred. Prior to the Commencement Date, each party hereto shall at its own expense exercise good faith and due diligence and take all steps within its reasonable control in seeking to satisfy the conditions to the Commencement Date set forth herein as soon as reasonably practicable. The County and the City,. each at its own expense, shall cooperate fully with each other and the other Participating Cities in connection with the foregoing undertaking. Until the Commencement Date occurs, the Original WDAs shall remain in full force and effect.

B) Condition to the Commencement Date. The Commencement Date for the Agreement shall be the date on which the percentage of the County' s Acceptable Waste attributable to Participating Cities which have executed and delivered Disposal Agreements shall exceed 85% percent ( using the percentage rates attributed to such Cities in Appendix 1). Unincorporated County is assumed to be a Participating City for the purposes of determining the Commencement Date in accordance with this Section 6, 2( b) and Appendix 1 of this Agreement.

C) Satisfaction of Condition and Commencement Date. Upon the satisfaction or waiver of the condition to the Commencement Date, the County shall give written notice thereof to the cities which have theretofore executed Disposal Agreements. The parties shall thereupon hold a formal closing acknowledging the satisfaction or waiver of the condition to the Commencement Date, certifying that the Commencement Date has occurred and designating the Participating Cities. Copies of all of the documents or instruments constituting or evidencing satisfaction of the Commencement Date conditions shall be furnished to each party prior to or on the Commencement Date.
25 Execution Copy
ITEM 6.5 - Attachment A
D) Newlv Incorporated Cities. Any city within Orange County which becomes incorporated after the Commencement Date shall upon request be offered the opportunity by the County to become a Participating City. If any such City executes a Disposal Agreement and meets the applicable condition provided in subsection 6.2(B) hereof within 180 days following the date of its municipal:incorporation, then such City shall be entitled to execute a Waste Disposal Agreement on substantially the same terms and conditions as this Agreement including the Contract Rate), notwithstanding the limitations contained in Section 3. 6( B).

E) Failure ofCondition. Ifby 120 DAYS AFTER BOARD APPROVAL], or such later date as the County may agree, the condition to the Commencement Date specified in this Section is not satisfied, either party hereto may, by notice in writing to the other party, terminate this Agreement. Neither party shall be liable to the other for the termination of this Agreement pursuant to this subsection,. and each of the parties shall bear its respective costs and expenses incurred in seeking to satisfy the condition to the Commencement Date.

Notwithstanding anything in this Agreement to the contrary; in the event that this Agreement is terminated pursuant to this Section, the provisions of the Original WDA shall remain in full force and effect on the terms and conditions set forth therein.

ARTICLE VII

GENERAL PROVISIONS
SECTION 7. 1 OPERATION AND MAINTENANCE OF THE DISPOSAL SYSTEM. The County, at its cost and expense through the County Solid Waste Enterprise Fund, shall at all times operate, or caused to be operated, the Disposal System in accordance with Applicable Law and the operating rules and regulations of the Department.

SECTION 7.2 UNCONTROLLABLE CIRCUMSTANCES GENERALLY.

A) Performance Excused. Except as otherwise specifically provided in this Agreement, neither the County nor the City shall be liable to the other for any failure or delay in the performance of any obligation under this Agreement( other than any payment at the time due and owing) to the extent such failure or delay is due to the occurrence of an Uncontrollable Circumstance.

B) Notice, Mitigation. The party experiencing an Uncontrollable Circumstance shall notify the other party by telecommunication or telephone and in writing, on or promptly after the date the party experiencing such Uncontrollable Circumstance first knew of the commencement thereof, followed within 15 days by a written description of( 1) the Uncontrollable Circumstance and the cause thereof( to the extent known),( 2) the date the Uncontrollable Circumstance began and the cause thereof, its estimated duration, the estimated time during which the performance of such parry' s obligations hereunder will be delayed, ( 3) the estimated amount, if any, by which the Contract Rate may need to be adjusted as a result of such Uncontrollable Circumstance, ( 4) its estimated impact on the other obligations of such parry under this Agreement and( 5) potential mitigating actions which might be taken by the County or City and any areas where costs might be reduced and the approximate amount of such cost reductions. Each party shall provide prompt written notice of the cessation of such Uncontrollable Circumstance. Whenever such act, event or condition shall occur, the parry claiming to be adversely affected thereby shall, as promptly as reasonably possible, use its best efforts to eliminate the cause therefor, reduce costs and resume performance under this Agreement. In addition, with respect to Changes in Law, the County shall diligently contest any such changes the imposition of which would have a material adverse impact on the Disposal System.

While the delay continues, the County or City shall give notice to the other party, before the first day of each succeeding month, updating the information previously submitted.

C) Impact on Contract Rate. If and to the extent that Uncontrollable Circumstances interfere with, delay or increase the cost to the County of meeting its obligations hereunder and providing Disposal Services to the Participating Cities in accordance herewith, the County shall be entitled to an increase in the Contract Rate as provided in Section 4. 2 herein or an extension in the schedule for performance equal to the amount of the increased cost or the time lost as a result thereof. The proceeds of any insurance available to meet any such increased cost shall be applied to such purpose prior to any determination of cost increases payable under this subsection. Any cost reductions achieved through the mitigating measures undertaken by the County pursuant to subsection 7.2( B) hereof upon the occurrence of an Uncontrollable Circumstance shall be reflected in a reduction of the amount by which the 26 Execution Copy
ITEM 6.5 - Attachment A
Contract Rate would have otherwise been increased or shall serve to reduce the Contract Rate to reflect such mitigation measures, as applicable.

SECTION 7. 3 INDENINIFICATION. To the extent permitted by law, the County agrees that, it will protect, indemnify, defend and hold harmless the City from and against all Loss- and-Expense arising from the City' s activity as an" arranger" ( for purposes of and as such term is defined under CERCLA or comparable state statutes) of municipal solid waste disposal pursuant to this Agreement. In the event the City shall determine that because of conflict or any other reason that it wishes to be defended by legal counsel other than the legal counsel provided by the County, the cost of providing such legal counsel shall be the City' s sole responsibility. The City acknowledges the County' s legitimate. interest in actively participating in any defense, litigation or settlement whether the County or the City provides legal counsel. Any costs incurred by the County pursuant to this Section shall be considered an Uncontrollable Circumstance cost and the County shall be entitled to adjust the Contract Rate as provided in subsection 4. 2( A) herein. The County shall not, however, be. required to indemnify or defend the City from and against all Loss-and- Expense arising from any willful, knowing, illegal or negligent disposal of hazardous waste other than incidental amounts of Household Hazardous Waste commonly found in municipal solid waste and permitted to be disposed in Class III landfills under RCRA) which violates the County' s landfill permits or Applicable Law. The parties agree that this provision constitutes an indemnity under CERCLA( to the extent of the specific provisions of this Section). The parties acknowledge that this subsection is not intended to and does not create any obligation on the part of the County to provide any indemnification or defense to any Franchise Hauler, whether franchised or: not, or any Independent Hauler or Transfer Station, under any circumstances. The City acknowledges the County' s legitimate interest in actively participating in any defense, litigation or settlement, and shall, as a condition to this indemnity, coordinate fully with the County in the defense.

SECTION 7. 4 RELATIONSHIP OF THE PARTIES Neither party to this Agreement shall have any responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the other party hereto, whether accrued, absolute, contingent or otherwise, or whether due or to become due. The County is an independent contractor of the City and nothing in this Agreement shall be deemed to constitute either party a partner, agent or legal representative ofthe other party or to create any fiduciary relationship between the parties.

SECTION 7. 5 LINT TED RECOURSE.

A) To the City. Except in the event the City has not established or maintained a City Solid Waste Enterprise Fund, no recourse shall be had to the general funds or general credit of the City for the payment of any amount due the County hereunder, or the performance ofany obligation incurred hereunder, including any Lossand-Expense of any nature arising from the performance or non-performance of the City' s obligations hereunder.

The sole recourse of the County for all such amounts shall be to the funds held in any such Solid Waste Enterprise Fund. All amounts held in any City Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amounts shall constitute property of the County. The City shall make adequate provision in the administration of any City Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due hereunder.

B) To the County. No recourse shall be had to the general funds or general credit of the County for the payment of any amount due the City hereunder, or the performance of any obligation incurred hereunder, including any Loss- and- Expense of any nature arising from the performance or non-performance of the County' s obligations hereunder. The sole recourse ofthe City for all such amounts shall be to the funds held in the County Solid Waste Enterprise Fund in accordance with the terms of this Agreement. All amounts held in the County Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amounts shall constitute property of the City. The County shall make adequate provision in the administration ofthe County Solid Waste Enterprise Fund for the payment ofany amount or the performance of any obligation which may be due hereunder.

SECTION 7. 6 PRE-EXISTING RIGHTS AND LIABILITIES. Nothing in this Agreement is intended to affect, release, waive or modify any rights, obligations or liabilities which any parry hereto may have to or against the other party as of the Contract Date relating to the disposal of waste in the Disposal System or any other related matter.
27 Execution Copy
ITEM 6.5 - Attachment A
SECTION 7. 7 NO VESTED RIGHTS. The City shall not acquire any vested property, license or other rights in the Disposal System by reason of this Agreement.

SECTION 7. 8 LIABILITY FOR COLLECTION TRANSPORTATION AND PROCESSING. Any liability incurred by the City as a result of collecting Acceptable Waste or processing it for diversion from landfill, or as a result of causing, franchising, permitting, licensing, authorizing or arranging any of the foregoing, shall be its sole liability, except as expressly otherwise provided herein.

SECTION 7. 9 NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no event shall either party hereto be liable to the other or obligated in any manner to pay to the other any special, incidental,. consequential, punitive or similar damages based upon claims arising out of or in connection with the performance or nonperformance of its obligations or otherwise under this Agreement, or the material inaccuracy of any representation made in this Agreement, whether such claims are based upon contract, tort, negligence, warranty or other legal theory.

SECTION 7. 10 AMENDMENTS. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by written agreement duly authorized and executed by both parties.

SECTION 7. 11 NOTICE OF LITIGATION. Each party shall deliver written notice to the other of any Legal Proceeding to which it is a parry and which questions the validity or enforceability of this Agreement executed. by the City or the County or any Legal Entitlement issued in connection herewith.

SECTION 7. 12 . FURTHER ASSURANCES. At any and all times the City and the County so far as may be authorized by law shall pass, make, do, execute, acknowledge and deliver any and every such further resolutions, acts, deeds, conveyances, instruments, assignments, transfers and assurances as may be necessary or reasonably requested by the other in order to give full effect to this Agreement..

SECTION 7. 13 ASSIGNMENT OF AGREEMENT. ( A) Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party hereto without the prior written consent of the other parry, which may be withheld in the other parry' s sole discretion. Notwithstanding the foregoing, either parry may assign this Agreement to another public entity, subject to the reasonable consent of the other party. In such circumstances the parry not requesting the assignment shall have the right to demand assurances of the financial, technical and legal ability of the proposed assignee to undertake the responsibilities and obligations ofthe assigning ply.

B) Sale. The County shall not enter into any agreement for the sale ofthe Disposal System which provides for an effective date for such sale prior to the termination of this Agreement.

SECTION 7. 14 INTEREST ON OVERDUE OBLIGATIONS. Except as otherwise provided herein, all amounts due hereunder, whether as damages, credits, revenue or reimbursements, that are not paid when due shall bear interest at the Overdue Rate on the amount outstanding from time to time, on the basis of a 365- day year, counting the actual number of days elapsed, and all such interest accrued at any time shall, to the extent permitted by Applicable Law, be deemed added to the amount due, as accrued.

SECTION 7. 15 BINDING EFFECT. This Agreement shall bind and inure to the benefit of the parties hereto and any successor or assignee acquiring an interest hereunder consistent with the provisions of Section 7. 13 hereof.

SECTION 7. 16 NOTICES. Any notice or communication required or permitted hereunder shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective parties set forth on the cover page of this Agreement. Changes in the respective addresses to which such notices may be directed may be made from time to time by any party by notice to the other party.
28 Execution Copy
ITEM 6.5 - Attachment A
IN WITNESS WHEREOF, COUNTY and CITY have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written.

COUNTY OF ORANGE
Date g By — pr
rtoOC Waste& Recyc ing
Date By
LeslieCityAl2epKeanate, City Mareer
4 City of Laguna
Date / By
Stepheq Mc Ewen, I ' City Attorney
City Representative
ATTEST ;
City of Laguna Woods 4
Date :
o,
BY
Yol Trrppy, Depu C&&
APPROVED AS TO FORM:

COUNTY COUNSEL

ORANGE COUNTY, CALIFORNIA
X
n
29 Execution Copy
ITEM 6.5 - Attachment A

APPENDIX

ESTIMATED ANNUAL TONNAGE
Execution Copy
ITEM 6.5 - Attachment A
APPENDIX 1

PERCENTAGE OF COUNTY ACCEPTABLE WASTE ATTRIBUTABLE TO PARTICIPATING CITIES FOR PURPOSE OF SECTION 6. 2( b)
Jurisdiction Percentage of County
Acceptable Waste
Anaheim 114%
Santa Ana 10. 6%
Irvine 7. 5%
Huntington Beach 6. 0%
Orange 5. 8%
Garden Grove 5. 1%
Fullerton 4.5%
Uninco orated Orange County 4. 3%
Costa Mesa 3. 6%
Ne ort Beach 3. 0%
Lake Forest 2. 6%
Buena Park 2. 5%
Mission Viejo 2. 3%
Westminster 2. 3%
Yorba Linda 23%
Brea 2. 1%
Tustin 2. 0%
Cypress 1. 9%
La Habra 1. 8%
San Clemente 1. 7%
Fountain Valley 1. 6%
La gun Ni ue] 1. 6%
Placentia 1. 6%
San Juan Capistrano 1. 6%
La una Beach 1. 4%
Dana Point 1. 2%
Stanton 1. 1%
Rancho Santa Margarita 1. 0%
La una Hills 0. 9%
Seal Beach 0. 8%
Aliso Viejo 0. 7%
Los Alamitos 0. 5%
La Palma 0. 3%
Laguna Woods 0. 2%
Villa Park 0. 2%
Total 100%
1) Unincorporated County is assumed to be aParticipating City for the purposes of determining the Commencement Date in accordance with Section 6. 2( b) of this Agreement. 2) A Participating City will only be included for purposing of determining the Commencement Date upon( i) execution of a Waste Disposal Agreement by that Participating City and( ii) execution ofa Hauler Acknowledgement(s) by the Franchise Hauler(s) operating within such Participating City
Execution Copy
ITEM 6.5 - Attachment A

APPENDIX

CUMULATIVE TONNAGE' TARGETS
Execution Copy
ITEM 6.5 - Attachment A
APPENDIX 2
Cumulative County Acceptable Waste Tonnage Target to be Used for Purposes of Section 4. 2( 33)
Fiscal Year County Acceptable Waste Cumulative County
Tonnage Acceptable Waste Tonnage
FY 2008- 09 3, 170, 387 3, 170, 387
FY 2009- 10 3, 092, 806 6, 263, 193
FY 2010- 11 3, 185, 590 9, 448, 783
FY 2011- 12 3, 344, 870 12,793,653
FY 2012- 13 3, 445, 216 16, 238, 869
FY 2013- 14 3, 514, 120 19, 752, 989
FY 2014- 15 3, 349, 262 23, 302,251
FY 2015- 16 3, 565, 608 26,867, 859
FY 2016- 17 3, 582, 033 30, 449,892
FY 2017- 18 3, 598, 535 34, 048, 427
FY 2018- 19 3, 615, 115 37, 663, 542
FY 2019- 20 3, 631, 774 41, 295, 316
Execution Copy
ITEM 6.5 - Attachment A
APPENDIX 3

CUMULATIVE CAPITAL COSTS
to be Used
for Purposes of Section 4. 2( A) vi
Fiscal Year Annual Capital Costs Cumulative Capital Costs ending June 30
2009 37, 939, 538 37, 939, 538
2010 59, 343, 405 97, 282, 943
2011 10, 433, 978 107, 716, 921
2012 13, 678, 113 121, 395, 034
2013 17, 525, 040 138, 920, 074
2014 11, 259, 518 150, 179, 592
2015 37, 682, 758 187,862, 350
2016. 5, 068, 800 192, 931, 150
2017 10, 662, 265 203, 593, 415
2018 29, 397, 698 232,991, 113
2019 8, 263, 795 241, 254, 908
2020 45, 103, 805 286,358, 713
Execution Copy
ITEM 6.5 - Attachment A

APPENDIX

FORM OF HAULER ACKNOWLEDGMENT
Execution Copy
ITEM 6.5 - Attachment A

FRANCHISE HAULER ACKNOWLEDGMENT
THIS FRANCHISE HAULER ACKNOWLEDGMENT, dated as of July 7, 2009 ( the Acknowledgment"), by and between the City of Laguna Woods ( the " City") and Ware Disposal, Inc. ( the Franchise Hauler"),

WITNESSETH
WHEREAS, the City and the Franchise Hauler have heretofore entered into an agreement entitled Agreement for Integrated Waste Management Services for Residential and Commercial Sectors, dated as of July 25, 2005( the" Franchise"); and[
WHEREAS, the City has issued to the Franchise Hauler a permit, license, approval or other authorization the " Authorization") which allows the Franchise Hauler to provide solid waste collection services within the City; and]]
WHEREAS, the Franchise [ SUBSTITUTE " AUTHORIZATION" THROUGHOUT IF APPLICABLE]] provides for the collection and disposal of certain municipal solid waste as described therein (" Franchise Waste") generated within the City; and]
WHEREAS, Orange County( the" County") owns, manages and operates a sanitary landfill disposal system for municipal solid waste generated within the County; and WHEREAS, the City and the County have heretofore entered into a Waste Disposal Agreement, dated as of July 23, 2009 ( the" Disposal Agreement") determining that the execution of such Disposal Agreement will serve the public health, safety and welfare of the residents of the City and County, by maintaining public ownership and stewardship over the Orange County Landfill Disposal System( the" Disposal System"); and WHEREAS, under the Disposal Agreement, the County has agreed to provide long- term disposal of all municipal solid waste generated within the City and the City has agreed to exercise all legal, and contractual power which it possesses from time to time to deliver or cause the delivery of Such waste to the Disposal System; and WHEREAS, the provisions of the Waste Disposal Agreement which guarantee capacity for the long term disposal of waste at specified rates generated in the City provide significant benefits to the Franchise Hauler; WHEREAS, notwithstanding any Franchise provisions to the contrary, the Franchise Hauler explicitly acknowledges the aforementioned benefits to the City, the County and the Franchise Hauler in providing for the disposal of all Franchise Waste to the Disposal System; and WHEREAS, the City and the Franchise Hauler desire to enter into this Acknowledgment to assure that the City and the Franchise Hauler will be entitled to the benefits of the Waste Disposal Agreement and to assure conformity with the waste delivery obligations which have been agreed to by the City under the Disposal Agreement through the delivery of waste by the Franchise Hauler to the Disposal System; and WHEREAS,. the Franchise Hauler' s agreement to deliver Franchise Waste to the Disposal System under this Acknowledgment is given in consideration of the Franchise Hauler' s right to receive the Contract Rate for such disposal as provided in the Disposal Agreement,
NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

I. Capitalized terms used and not otherwise defined herein are used as defined in the Disposal Agreement.

Execution Copy
ITEM 6.5 - Attachment A

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

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

4. The Franchise Hauler shall deliver or cause to be delivered all Controllable Waste ( including all residue from the processing by any means, wherever conducted, of Controllable Waste), to the Disposal System, and shall otherwise assist the City in complying with its obligations under the Waste Disposal Covenant in Section 3. 1 of the Disposal Agreement.

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

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

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

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

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

10. This Acknowledgment shall be in full force and effect and shall be legally binding upon the City and Franchise Hauler from the dated hereof and shall continue in full force and effect until the earlier of( i) the end ofthe term of the Franchise or( ii) the end of the term ofthe Disposal Agreement.

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

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

Execution Copy
ITEM 6.5 - Attachment A
IN WITNESS WHEREOF, the p s ha caused this Acknowledgment to be executed by their duly authorized officers or representatives as of` day of : 2009.

CITYOF LAGUNA WOODS
Signature v r
Printed Name: Leslie A. Keane
Title: City Manager
Franchise Hauler)
oej
Signature: s
i
Printed Nafne:,, Jay Ware
Title: General Manager
Execution Copy
ITEM 6.5 - Attachment A
This page is intentionally blank.

ITEM 6.5 - Attachment B
ITEM 6.5 - Attachment B
ITEM 6.5 - Attachment B
ITEM 6.5 - Attachment B
ITEM 6.5 - Attachment B
ITEM 6.5 - Attachment B
ITEM 6.5 - Attachment B
This page is intentionally blank.

6.6 2021 PAVEMENT MANAGEMENT RELIEF

FUNDING PROGRAM
This page is intentionally blank.

ITEM 6.6
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, WHICH CERTIFIES THAT THE CITY

COUNCIL HAS AUTHORIZED THE PROJECT LIST SUBMITTAL

FOR CORONAVIRUS RESPONSE AND RELIEF SUPPLEMENTAL
APPROPRIATIONS ACT OF 2021 (CRRSAA) FUNDING THROUGH
THE ORANGE COUNTY TRANSPORTATION AUTHORITY 2021

PAVEMENT MANAGEMENT RELIEF FUNDING PROGRAM
WHEREAS, the City of Laguna Woods is being provided $200,000 in federal Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (“CRRSAA”) funding through the 2021 Pavement Management Relief Funding “(PMRF”) Program; and
WHEREAS, the City of Laguna Woods is eligible to receive federal funding through the California Department of Transportation; and WHEREAS, the Orange County Transportation Authority (“OCTA”) is responsible for the distribution of the CRRSAA funding; and WHEREAS, OCTA has developed guidelines for administering and distributing CRRSAA funds to eligible local agencies through the 2021 PMRF Program; and
WHEREAS, the City of Laguna Woods is the lead agency for project(s) within Laguna Woods and will comply with all applicable local, state, and federal provisions including but not limited to the Federal Transportation Improvement Program, California Environmental Quality Act, National Environmental Policy Act, Americans with Disabilities Act, and Buy America.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council does hereby authorize the submittal of the following project nomination to OCTA for CRRSAA funding:

ITEM 6.6
R 22-XX 2 XX-XX-2022
• Pavement Management Plan Project (Southbound Moulton Parkway between Calle Cortez and South City Limit) for $200,000 in CRRSAA funding.

SECTION 3. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2022. _______________________________
CAROL MOORE, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk

7.1 2021-2029 GENERAL PLAN HOUSING

ELEMENT UPDATE
This page is intentionally blank.

ITEM 7.1
CC  02-09-2022 ARM ITEM 7.1 – AR Page 1 of 10
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: February 9, 2022 Adjourned Regular Meeting
SUBJECT: 2021‐2029 General Plan Housing Element Update
Recommendation

1. Receive staff report.

AND

2. Open public hearing.

AND

3. Receive public testimony.

AND

4. Close public hearing.

AND

5. Adopt a resolution entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ADOPTING A NEGATIVE DECLARATION
FOR THE 2021-2029 GENERAL PLAN HOUSING ELEMENT UPDATE,
ADOPTING THE 2021-2029 GENERAL PLAN HOUSING ELEMENT

UPDATE, AND PROVIDING DIRECTION AND MAKING FINDINGS
ITEM 7.1
ITEM 7.1 – AR Page 2 of 10 CC  02-09-2022 ARM
RELATED TO ADOPTION OF THE 2021-2029 GENERAL PLAN

HOUSING ELEMENT REQUIRED BY APPLICABLE STATE LAW
Background
The Regional Housing Needs Assessment (“RHNA”) is a process mandated by the State of California’s housing laws to determine existing and future housing needs for each city and unincorporated area. Once housing needs are quantified through the RHNA process, cities and counties are required to take certain land use planning actions to allow for the construction of new housing units to meet those needs. For additional information, please refer to Attachment A.

From 1969 until the City’s incorporation on March 24, 1999, the County of Orange was responsible for RHNA compliance and land use planning in Laguna Woods.

Beginning on March 24, 1999, those responsibilities transferred locally to the City.

If the City had not incorporated, the County of Orange would have retained the authority to make land use planning decisions affecting Laguna Woods. With the City, land use planning is within the purview of the locally elected City Council.

The current 6th Cycle RHNA process (for the period of 10/2021–10/2029) resulted in the following housing needs allocation for the City:

Table 1: City’s Housing Needs Allocation
Income Level Number of Units
Very-low income 127 units
Low income 136 units
Moderate income 192 units
Above-moderate income 542 units
Total 997 units
Source: Southern California Association of Governments (“SCAG”) State law requires the City to update its General Plan Housing Element within 120 calendar days from the statutory due date of October 15, 2021 (February 12, 2022).

The update must plan for the 6th Cycle RHNA Housing Needs Allocation.

Please note that neither the RHNA nor General Plan Housing Element Update processes require the City or any private property owner to construct housing or discontinue any existing non-housing use. Frequently asked questions are answered in Attachment A.

ITEM 7.1
CC  02-09-2022 ARM ITEM 7.1 – AR Page 3 of 10
On May 5, 2021, a City Council meeting was held that focused on an overview of the RHNA and General Plan Housing Element Update processes, and a draft of the Housing Needs Assessment. Public comments were accepted.

On May 19, 2021 and June 2, 2021, City Council meetings were held that focused on the Housing Sites Inventory. Public comments were accepted.

On July 21, 2021, a City Council meeting was held that focused on drafts of the General Plan Housing Element and HCD Housing Element Sites Inventory Form.

Public comments were accepted and the City Council voted 4-1, with then-Mayor Pro Tem Moore voting no, to authorize the City Manager to submit drafts of the updated General Plan Housing Element and Housing Sites Inventory Form to HCD for review, as required by California Government Code Section 65585.

Agenda materials and other information from previous City Council meetings are available for public review at or from City Hall during normal working hours and on the City’s website (www.cityoflagunawoods.org/projects).

Discussion
At today’s meeting, the City Council will conduct a public hearing regarding the proposed 2021‐2029 General Plan Housing Element Update (Attachment A), after which adoption will be considered.

If the City Council adopts the 2021‐2029 General Plan Housing Element Update at today’s meeting, the General Plan Housing Element would be submitted to HCD for an additional round of review required by California Government Code Section 65585. HCD would then have 90 days to report its findings to the City and indicate whether additional revisions are necessary to substantially comply with state law.

If the City Council does not adopt an updated General Plan Housing Element by February 12, 2022, immediate consequences would include:
• Being required to complete future General Plan Housing Element updates every four years for at least eight years, as opposed to every eight years; • Exposure to civil litigation by private parties; and
• Ineligibility for certain state grants.

Depending on the length of noncompliance, the City could also be subject to legal ITEM 7.1
ITEM 7.1 – AR Page 4 of 10 CC  02-09-2022 ARM
action by the State of California, fines of $10,000 to $100,000 per month, and the loss of existing local control over development and building permitting.

HCD Review Findings
On July 21, 2021, drafts of the General Plan Housing Element and HCD Housing Element Sites Inventory Form were submitted to HCD for review, as required by California Government Code Section 65585. HCD’s findings were reported to the City in a letter dated September 20, 2021 (Attachment B). The proposed 2021- 2029 General Plan Housing Element Update includes revisions to comply with state law, which are summarized in Attachment C for ease of reference.

Revisions Since the City Council’s July 21, 2021 Action Attachment D uses redline to identify revisions made to the General Plan Housing Element between receiving HCD’s findings on September 20, 2021 and releasing a revised draft for public review on January 13, 2022.

Attachment E uses redline to identify revisions made to the General Plan Housing Element following the January 2022 public review period and until the publication of this agenda packet on February 4, 2022. Corrections made to the HCD Housing Element Sites Inventory Form are also noted on Attachment E. Comment letters received during the public review period are included as Attachment F.

Summary of Maximum Density and Realistic Capacity Revisions The proposed 2021‐2029 General Plan Housing Element Update includes revisions to the Housing Sites Inventory that are intended to address comments from HCD regarding the likelihood of development, as well as concerns that were expressed at the July 21, 2021 City Council meeting regarding the compatibility of potential future housing projects with existing, adjacent, lower-density residential uses. As summarized in Table 2 and discussed further in Exhibit A, all 17 sites would now be permitted to be developed entirely as housing (instead of limiting the amount of housing on sites 15 and 16 to 55% with the balance reserved for commercial uses).

Maximum densities1 have been reduced on sites 9, 13, 16, and 17. 1 “Maximum density” refers to the maximum development density allowed for any potential future housing project, unless a housing project qualifies for one or more density bonuses under State Density Bonus Law, in which case the maximum density would be adjusted upward as required by state law.

ITEM 7.1
CC  02-09-2022 ARM ITEM 7.1 – AR Page 5 of 10
Table 2: Maximum Density and Realistic Capacity Revisions

PROPERTIES PERMITTED TO BE DEVELOPED AS HOUSING
(UP TO 100% HOUSING)
Site
Number Existing Use Maximum
Density
Realistic
Capacity (New
Housing Units)
1 Town Centre Vacant Lot 50 units per acre 81
2 Pacific Hills Calvary Chapel Parking Lot 50 units per acre 31 3 Rossmoor Electric 50 units per acre 55
4 Saddleback Golf Cars 50 units per acre 55
5 Laguna Woods Self Storage 50 units per acre 236
6 Animal Hospital 50 units per acre 34
7 PS Business Park
(excludes Jack in the Box)
50 units per acre 129
8 Smart Parke 50 units per acre 63
9 McCormick & Son Mortuary 30 units per acre
20 units per acre
38 25
10 Lutheran Church of the Cross 20 units per acre 54
11 Geneva Presbyterian Church 20 units per acre 71
12 Saint Nicholas Catholic Church 20 units per acre 83
13 Temple Judea 20 units per acre
10 units per acre
31 15
14 Laguna Country United Methodist Church 30 units per acre 105 17 Helm Center 30 units per acre
20 units per acre
17 11

PROPERTIES PERMITTED TO BE DEVELOPED AS MIXED USE
(USES SIMILAR TO EXISTING AND UP TO 55% HOUSING)
Site
Number Existing Use Maximum Density
Realistic
Capacity (New
Housing Units)
15 Medical building in Town Centre 50 units per acre 63 121
16 Willow Tree Center East
(Olive Garden, Cart Mart, and South
County Adult Day Services)
20 units per acre
10 units per acre
29 27
With the revisions summarized in Table 2:
• The maximum densities of potential future housing projects have been reduced on four sites located adjacent to existing, lower-density residential uses (sites 9, 13, 16, and 17) and increased on site 15, which is surrounded on all sides by non-residential uses; and
ITEM 7.1
ITEM 7.1 – AR Page 6 of 10 CC  02-09-2022 ARM
• Total future housing construction potential on the 17 sites, based on realistic capacities, has increased from 1,175 to 1,196 units. As a result, the excess, or “overzoning,” capacity increased from 17.85% to 19.95%.

Overzoning helps to (1) ensure that sufficient adequate sites will remain available at all times to meet the remaining unmet housing needs for each income category, per California Government Code Section 65863 (“No Net Loss Law”), and (2) compensate for urban land left vacant due to ownership and development constraints, per HCD’s “Housing Element Site Inventory Guidebook Government Code Section 65583.2” published June 10, 2020.

HCD also notes that “a sufficient supply of land beyond the time frame of the housing element helps prevent land shortages from bidding up land costs.” HCD Housing Element Sites Inventory Form
California Government Code Section 65583.3 requires the housing sites inventory portion of the General Plan Housing Element to be prepared using standards, form, and definitions adopted by HCD. The information required to complete HCD’s Housing Element Sites Inventory Form has been prepared for the proposed 2021- 2029 General Plan Housing Element Update and is included as Attachment G. The electronic spreadsheet version of the information is available on the City’s website (www.cityoflagunawoods.org/projects). Interested parties may also contact the City Clerk’s Office at [email protected] or (949) 639-0512 to obtain an emailed copy of the electronic spreadsheet.

Impact on Fiscal Years 2021-23 Budget & Work Plan
Adoption of the 2021‐2029 General Plan Housing Element Update would shift the City’s focus from developing overarching policy to implementing that policy on the schedule set forth in the General Plan Housing Element. As proposed, the following work is anticipated to occur either in-whole or in-part during the term of the existing Fiscal Years 2021-23 Budget & Work Plan:

CALENDAR YEAR 2022
Program H-1.1.1. Rezone the 17 potential housing sites identified in the Housing Sites Inventory and Analysis to accommodate the City’s housing needs allocation.

ITEM 7.1
CC  02-09-2022 ARM ITEM 7.1 – AR Page 7 of 10
Program H-1.2.2. Prepare and maintain a webpage with information related to the 17 potential housing sites identified in the Housing Sites Inventory and Analysis, including a Geographic Information System (GIS) map layer with geospatial information.

Program H-1.2.3. Conduct a market study and then amend the existing inclusionary housing ordinance to modify the minimum percentages of new housing units that must be deed-restricted for extremely low, very low, and low-income households, as feasible and advantageous to promote the development of affordable housing.

Program H-1.2.4. Adopt an ordinance creating an expedited and feereduced lot consolidation process for consolidations involving any one or more of the 17 potential housing sites identified in the Housing Sites Inventory and Analysis for the purpose of developing housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or lowincome households; or, at least 50% of housing units are affordable for moderate-income households. To be eligible, the housing units shall be subject to an affordability covenant for at least 55 years.

Program H-1.2.5. Adopt an ordinance waiving or reducing City building permit fees for housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or low-income households; or, at least 50% of housing units are affordable for moderate-income households. To be eligible, the housing units shall be subject to an affordability covenant for at least 55 years.

Program H-1.2.6. Amend various, existing housing-related provisions of the Laguna Woods Municipal Code to promote regulatory clarity.

Program H-1.2.7. Formalize written procedures for the application and processing of housing projects eligible for streamlined, ministerial approval pursuant to California Government Code Section 65913.4.

Program H-1.3.4. Amend various, existing housing-related provisions of the Laguna Woods Municipal Code to conform to state law.

ITEM 7.1
ITEM 7.1 – AR Page 8 of 10 CC  02-09-2022 ARM
Program H-1.4.3. Designate and maintain a “specialist” to assist with the processing and approval of applications to develop accessory dwelling units and junior accessory dwelling units.

Program H-2.2.2. Adopt an ordinance waiving or reducing City building permit fees for improvements to the home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability, as provided for by California Health and Safety Code Section 17951.7. Consider including provisions allowing for similar building permit fee waivers or reductions for improvements to the home of a person with a qualifying disability that are made to accommodate that disability, regardless of age. Prepare and maintain a flyer with related information.

Program H-2.2.3. Provide opportunities for reimbursements, grants, or other forms of financial assistance to support home improvements that increase accessibility or functionality for persons with special needs.

CALENDAR YEAR 2023
Program H-1.2.8. Investigate potential incentives for the development of housing projects with features that exceed the minimum requirements set forth in the California Building Energy Efficiency Standards. If feasible and economical, adopt such incentives.

Program H-1.4.2. Prepare and maintain a webpage with information related to Laguna Woods Municipal Code requirements, processing procedures, and incentives pertaining to the development of accessory dwelling units and junior accessory dwelling units. Prepare and maintain a flyer with related information.

Program H-2.1.1. Prepare and maintain a webpage with information on home improvement-related financial assistance opportunities available to extremely low, very low, and low-income households. Train City staff to make referrals using the webpage.

Program H-2.2.1. Prepare and maintain a webpage with information on home improvement-related financial assistance opportunities available to persons with special needs. Train City staff to make referrals using the webpage.

ITEM 7.1
CC  02-09-2022 ARM ITEM 7.1 – AR Page 9 of 10
Program H-3.1.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mobility counseling services. If feasible and economical, implement such services.

Program H-3.2.1. Prepare and maintain a webpage with information on housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. Train City staff to make referrals using the webpage.

Program H-3.2.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. If feasible and economical, implement such services.

Program H-4.1.1. Host an annual public forum to:
• Provide public education related to the purpose and scope of the housing element, as well as progress in its implementation; and • Solicit public input on the implementation of the housing element, existing and projected housing needs for all economic segments, and resources and constraints relevant to meeting housing needs.

CALENDAR YEARS 2022 AND 2023
Program H-4.1.2. Prepare and submit an annual report to the City Council, California Governor’s Office of Planning and Research, and HCD with:
• The information required by California Government Code Section 65400(a)(2), in the form and manner specified; and
• A statement regarding the general plan’s internal consistency and, if necessary, the identification of corrective actions that will be taken to resolve any internal inconsistency.

If the City Council adopts the 2021‐2029 General Plan Housing Element Update at today’s meeting, staff anticipates immediately initiating the rezoning process required by Program H-1.1.1, while simultaneously developing a plan to reallocate resources (both personnel and budget) to complete the balance of the work.

California Government Code Section 65585 empowers the Attorney General to bring a suit against the City for any action or failure to act that it determines is ITEM 7.1
ITEM 7.1 – AR Page 10 of 10 CC  02-09-2022 ARM
inconsistent with state law or the General Plan Housing Element, including any failure to implement any program actions included therein.

Environmental Review
A Negative Declaration (Exhibit B to Attachment A) was prepared to evaluate the physical environmental impacts of this project, in conformance with the provisions of the California Environmental Quality Act (“CEQA”) per State CEQA Guidelines Section 15070 and in conformance with the Local CEQA Procedures.

The Negative Declaration finds that the project will have less than significant effects on the environment. A public comment period for the Negative Declaration was initiated on August 17, 2021 and ended on September 16, 2021. Copies of the document were available for public review at City Hall and on the City’s website.

Fiscal Impact
Sufficient funds to support the preparation and adoption of the 2021‐2029 General Plan Housing Element Update are included in the City’s budget (General Fund and State of California Grants Fund monies).

Staff anticipates that supplemental General Fund budget appropriations would be necessary to complete the state-mandated implementation of the programs included in the General Plan Housing Element, the extent of which is not yet known, but would be estimated after HCD finds that the 2021‐2029 General Plan Housing Element Update and its programs are in substantial compliance with state law. The City has State of California Grants Fund monies presently budgeted to support at least preliminary work on the rezoning process required by Program H-1.1.1.

Attachments: A – Proposed Resolution
Exhibit A – Proposed General Plan Housing Element
Exhibit B – Initial Study/Negative Declaration
B – HCD Findings Letter dated September 20, 2021
C – Draft City Response to HCD Findings Letter dated September 20, 2021 D – Revisions for Draft General Plan Housing Element posted January 13, 2022 E – Revisions for Proposed General Plan Housing Element posted February 4, 2022 (supplemental to the Revisions for Draft General Plan Housing Element posted January 13, 2022)
F – Comment Letters Received During the January 2022 Public Review Period Exhibit A – Comment Letter from Catherine “Kate” R. Van Camp Exhibit B – Comment Letter from Rona Henry and Rev. Kent Doss G – Information Required to Complete HCD’s Housing Element Sites Inventory Form for the Proposed General Plan Housing Element
ITEM 7.1
Attachment A
Proposed Resolution
This page is intentionally blank.

ITEM 7.1 – Attachment A
R 22-XX 1 XX-XX-2022
RESOLUTION NO. 22-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ADOPTING A NEGATIVE DECLARATION
FOR THE 2021-2029 GENERAL PLAN HOUSING ELEMENT UPDATE,
ADOPTING THE 2021-2029 GENERAL PLAN HOUSING ELEMENT

UPDATE, AND PROVIDING DIRECTION AND MAKING FINDINGS
RELATED TO ADOPTION OF THE 2021-2029 GENERAL PLAN

HOUSING ELEMENT REQUIRED BY APPLICABLE STATE LAW
WHEREAS, California Government Code Section 65300 requires every city to adopt a comprehensive, long-term general plan to guide physical development of the city and of any land outside its boundaries which, in the City’s judgment, bears relation to its planning; and
WHEREAS, California Government Code Section 65302 requires general plans to include a housing element with specific requirements for form and content set forth in California Government Code Section 65580 et al.; and WHEREAS, California Government Code Section 65588 requires general plan housing elements to be updated on either a five- or eight-year cycle; and WHEREAS, as required by and in accordance with state law, the City has prepared an update of its General Plan Housing Element covering the 6th Cycle Planning Period spanning October 2021 through October 2029 and planning for the Regional Housing Needs Assessment’s 6th Cycle Housing Needs Allocation of 997 housing units (“2021-2029 General Plan Housing Element Update”), which is attached hereto as Exhibit A and incorporated herein by this reference; and WHEREAS, the City has considered findings received from the California Department of Housing and Community Development (“HCD”) following HCD’s review of a draft of the 2021-2029 General Plan Housing Element Update dated July 2021, and made corresponding revisions to comply with state law, which are incorporated into the 2021-2029 General Plan Housing Element Update; and WHEREAS, based on the factors described in the 2021-2029 General Plan Housing Element Update [including, but not limited to, the analysis contained in Exhibit C (Housing Sites Inventory and Analysis) thereto, supported by the goals, policy objectives, and programs set forth in the General Plan Housing Element], the City Council finds that the existing uses on the 17 potential housing sites ITEM 7.1 – Attachment A
R 22-XX 2 XX-XX-2022
identified in the housing sites inventory to accommodate the Regional Housing Needs Assessment for lower income households are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the planning period; and WHEREAS, following the preparation of an Initial Study for the 2021-2029 General Plan Housing Element Update, a Negative Declaration was prepared to evaluate the physical environmental impacts of the 2021-2029 General Plan Housing Element Update, in conformance with the provisions of the California Environmental Quality Act (“CEQA”) per State CEQA Guidelines Section 15070 and in conformance with the Local CEQA Procedures, which is attached hereto as Exhibit B and incorporated herein by this reference. The Negative Declaration finds that the 2021-2029 General Plan Housing Element Update will have less than significant effects on the environment; and
WHEREAS, on February 9, 2022, the City Council held a duly noticed public hearing on the 2021-2029 General Plan Housing Element Update (including, without limitation, the Initial Study/Negative Declaration) at which the members of the City Council, utilizing their independent judgement, reviewed and considered all of the information, evidence, and testimony presented, both written and oral.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. The City Council hereby adopts the 2021-2029 General Plan Housing Element Update (Exhibit A) and Negative Declaration (Exhibit B), subject to the City Manager modifying the 2021-2029 General Plan Housing Element Update to reference the vote taken to adopt this resolution.

SECTION 3. The City Manager is directed to promptly submit a copy of the adopted 2021-2029 General Plan Housing Element Update to HCD, as required by California Government Code Section 65585(g), and to the El Toro Water District, as required by California Government Code Section 65589.7(a).

SECTION 4. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

ITEM 7.1 – Attachment A
R 22-XX 3 XX-XX-2022
PASSED, APPROVED AND ADOPTED on this XX day of XX 2022. _______________________________
CAROL MOORE, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
This page is intentionally blank.

ITEM 7.1
Exhibit A to Attachment A
Proposed General Plan Housing Element
This page is intentionally blank.
6TH CYCLE (2021-2029)
FEBRUARY 2022

CITY OF LAGUNA WOODS

GENERAL PLAN

HOUSING ELEMENT
City
of Laguna Woods
California
Founded 1999
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page is intentionally blank.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-1 of H-18

INTRODUCTION
California Government Code Section 65300 requires each city to adopt a comprehensive, long-term general plan to guide physical development. The Laguna Woods General Plan reflects the City of Laguna Woods’ intentions about land use and its relationship to circulation, conservation, housing, noise, open space, and safety. This element identifies priority housing issues in Laguna Woods and sets forth goals and policies to achieve balance between the needs of the community and future development.

PURPOSE AND SCOPE
State law requires that general plans include a housing element, as follows:

California Government Code Section 65302(c): [The general plan must include] a housing element as provided in [California Government Code] Article 10.6 (commencing with Section 65580).

California Government Code Section 65583: The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community.

California Government Code Section 65583(a)(3) specifically requires that housing elements include “an inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites.” For the purpose of that requirement, “housing needs for a designated income level” are quantified through the Regional Housing Needs Assessment (RHNA), which is discussed further in this element.

Additional statutory requirements related to the development and adoption ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-2 of H-18
of housing elements are contained in California Government Code sections 65580 through 65589.

This element addresses the following priority issues:
 Housing development
 Housing conservation
 Affirmatively furthering fair housing
 Housing element implementation

REGIONAL HOUSING NEEDS ASSESSMENT
The Regional Housing Needs Assessment (RHNA) is a process mandated by the State of California’s housing laws to determine existing and future housing needs for each city and unincorporated area. Once housing needs are quantified through the RHNA process, cities and counties are required to take certain land use planning actions to allow for the construction of new housing units to meet those needs, including updating of housing elements.

The RHNA process is foundational to this element and, as such, the following information is provided to promote clarity and a common understanding of both the RHNA process and the City’s associated obligations.

FREQUENTLY ASKED QUESTIONS
Is the RHNA process new?
No. The RHNA process began in 1969 and has occurred on regular “cycles” since then. From 1969 until the City’s incorporation on March 24, 1999, the County of Orange was responsible for RHNA compliance and land use planning in Laguna Woods. Beginning on March 24, 1999, those responsibilities transferred locally to the City.

How does the RHNA process determine housing needs?
The California Department of Housing and Community Development (HCD) is responsible for determining housing needs for each region’s “council of ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-3 of H-18
governments,” which for Laguna Woods is the Southern California Association of Governments (SCAG). The SCAG region encompasses six counties (Imperial, Los Angeles, Orange, Riverside, San Bernardino, and Ventura) and 191 cities.

HCD starts with demographic population information from the California Department of Finance and then applies a formula intended to increase housing supply and further other housing-related objectives established by the California State Legislature (see California Government Code Section 65584).

After receiving HCD’s housing needs determination, SCAG allocates HCD’s determination between individual cities and unincorporated areas. For the current 6th Cycle RHNA process (10/2021 - 10/2029 planning period), SCAG’s allocation methodology considered factors including, but not limited to, anticipated household growth, job and transit accessibility, and social equity (the distribution of housing by income categories).

Table H-1 summarizes the City’s current housing needs allocation.

Table H-1: 6th Cycle RHNA Housing Needs Allocation
Income Level Number of Units
Very-low income 127
Low income 136
Moderate income 192
Above-moderate income 542
Total 997
What does the RHNA process require of the City?
The City is required to zone sufficient land to allow for the construction of new housing units to meet its housing needs allocation. Such land must be “suitable for residential development,” which state law generally defines as including vacant land, residential land upon which additional housing units could be constructed, and nonresidential land that could be redeveloped to include new housing units (California Government Code Section 65583.2(a)). Such zoning must be “by right,” which means that the City is required to allow new ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-4 of H-18
housing construction without requiring conditional use permits or other discretionary approvals that would constitute a “project” under the California Environmental Quality Act (CEQA).

How does the City’s General Plan Housing Element relate to the RHNA process? State law requires that all cities update their general plan housing elements on either a five- or eight-year cycle (California Government Code Section 65588).

The City is on an eight-year cycle with its most recent update due on October 15, 2021. Prior to adopting an updated General Plan Housing Element, the City is required to demonstrate to HCD that the update adequately plans for the City’s housing needs allocation and otherwise complies with applicable state law (California Government Code sections 65583 and 65585).

Does the City have the ability to zone private property? Yes. State law requires the City to designate “the proposed general distribution and general location and extent of the uses of the land” within city limits, including both “public and private uses of land” (California Government Code Section 65302(a)). All public and private property in Laguna Woods, with the exception of public roads, is presently zoned and has been since the community was first constructed.

Does the RHNA process require the City to construct housing? No. State law is explicit that the City is not required to “expend local revenues for the construction of housing, housing subsidies, or land acquisition” (California Government Code Section 65589(a)(1)).

Does the RHNA process require private property owners to construct housing? No. While state law requires zoning sufficient to accommodate the City’s housing needs allocation, it does not require the use of that property to be limited to the construction of new housing units nor does it require property owners to construct housing or discontinue any existing non-housing uses. If a property owner does not wish to construct housing, zoning that allows such construction only presents an option for the future.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-5 of H-18
Who makes the decision to construct housing?
Housing construction requires interested property owners and interested developers. No party is obligated to construct housing or discontinue any existing non-housing uses, regardless of how property is zoned.

Does the RHNA process allow the City to permit only senior housing? No. State law specifies that the RHNA process is intended to address the “housing need of persons at all income levels” with goals including “increasing the housing supply and the mix of housing types, tenure, and affordability” (California Government Code Section 65584). While property owners may choose to construct age-restricted housing, state law does not allow the City to place such a restriction on properties for the purpose of accommodating the City’s housing needs allocation.

Does the City receive credit for existing affordable housing units? No. The RHNA process is focused on future housing needs. For the 6th Cycle RHNA process, credit was only provided for housing units approved, permitted, or built on or after June 30, 2021.

AFFIRMATIVELY FURTHERING FAIR HOUSING
California Assembly Bill 686 (2018) chaptered into law an obligation for cities and other public agencies to “administer […] programs and activities relating to housing and community development in a manner to affirmatively further fair housing, and take no action that is materially inconsistent with its obligation to affirmatively further fair housing.” California Government Code Section 8899.50(a)(1) defines “affirmatively furthering fair housing” as “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-6 of H-18
compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development.”

GOALS, POLICY OBJECTIVES, AND PROGRAMS
This element is organized to be consistent with the other elements of the Laguna Woods General Plan. Goals and policy objectives provide declarative statements that set forth the City’s approach to each of the priority issues.

Goals: General statements of desired outcomes.

Policy Objectives: Specific commitments to support decisions and actions consistent with a stated goal. Policy objectives provide guidance to the City Council, City advisory committees, and City staff when reviewing development applications and making other decisions that affect growth, conservation, and development.

As required by California Government Code Section 65583(c), this element also identifies programs that the City is undertaking or intends to undertake to implement the policy objectives and achieve the goals and policy objectives of the housing element during the planning period (10/2021 - 10/2029).

Priority Issue 1. HOUSING DEVELOPMENT.

Goal H-1. Enable the development of housing necessary to accommodate current and projected housing needs, including for lower-income households and other special needs populations.

Policy Objective H-1.1. Make sites available to accommodate current and projected housing needs for groups at all income levels, in accordance with California Government Code Section 65583(c)(1).

Program H-1.1.1. Rezone the 17 potential housing sites identified in the Housing Sites Inventory and Analysis (Exhibit C) to accommodate the City’s housing needs allocation (Table H-1).

Primary Responsibility: Planning & Environmental Services Department ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-7 of H-18
Anticipated Timeline: Calendar Year 2022
Anticipated Funding: California Senate Bill 2 (2017) Planning Grant Quantified Objectives: See Table G in Exhibit C
Note: The rezoning process will include the creation of four new overlay zoning districts and the adoption of minimum density and development standards for each. Specific commitments in the rezoning process include, but are not limited to, (1) complying with applicable provisions of California Government Code Section 65583.2 et al., (2) permitting housing projects by right, as required by state law, (3) permitting owner-occupied and rental multifamily uses by right for housing projects in which 20% or more of the housing units are affordable for lower-income households, (4) establishing densities for potential housing sites as specified in Table G in Exhibit C, and (5) allowing the development of housing projects as standalone uses on each potential housing site.

Policy Objective H-1.2. Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.

Program H-1.2.1. Continue to maintain website information regarding fees, exactions, and affordability requirements imposed by the City that are applicable to housing development projects, in accordance with California Government Code Section 65940.1.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Website Information
Program H-1.2.2. Prepare and maintain a webpage with information related to the 17 potential housing sites identified in the Housing Sites Inventory and Analysis (Exhibit C), including a Geographic Information System (GIS) map layer with geospatial information.

HOUSING ELEMENT
February 2022
Page H-8 of H-18
Program H-1.2.3. Conduct a market study and then amend the existing inclusionary housing ordinance to modify the minimum percentages of new housing units that must be deed-restricted for extremely low, very low, and low-income households, as feasible and advantageous to promote the development of affordable housing.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Market Study and Conforming Ordinance Note: In accordance with HCD’s “Housing Element Site Inventory Guidebook Government Code Section 65583.2” memorandum dated June 10, 2020, amendment of the ordinance will follow consultation with both for-profit and nonprofit developers to determine an appropriate mix of incomes that make development feasible in Laguna Woods. The City will also consult with housing advocates. When applied to rental housing, the ordinance will include options for the developer to meet the inclusionary requirements other than exclusively requiring building affordable units on site.

Program H-1.2.4. Adopt an ordinance creating an expedited and feereduced lot consolidation process for consolidations involving any one or more of the 17 potential housing sites identified in the Housing Sites Inventory and Analysis (Exhibit C) for the purpose of developing housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or low-income households; or, at least 50% of housing units are affordable for moderate-income households. To be eligible, the housing units shall be subject to an affordability covenant for at least 55 years.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.2.5. Adopt an ordinance waiving or reducing City building permit fees for housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or low-income households; or, at least ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-9 of H-18
50% of housing units are affordable for moderate-income households. To be eligible, the housing units shall be subject to an affordability covenant for at least 55 years.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.2.6. Amend various, existing housing-related provisions of the Laguna Woods Municipal Code to promote regulatory clarity.  Section 13.23.030(a)(2)c. Delete “private living space.” Note: The language identified for deletion is duplicative within Laguna Woods Municipal Code Chapter 13.23 and is not intended to constrain the development of emergency shelters in a manner that would conflict with Assembly Bill 139 (2019).
 Section TBD. Explicitly identify that low barrier navigation centers are permitted by right in zoning districts where multifamily and mixed uses are permitted, including nonresidential zoning districts permitting multifamily uses pursuant to California Government Code Section 65660.

Note: The City is required to comply with California Government Code Section 65660 irrespective of whether explicit language is adopted as part of the Laguna Woods Municipal Code.
 Section TBD. Explicitly identify that zoning is consistent with the Employee Housing Act (California Health and Safety Code Section 17000 et seq.), specifically sections 17021.5 and 17021.6.

Note: The City is required to comply with the Employee Housing Act irrespective of whether explicit language is adopted as part of the Laguna Woods Municipal Code.

HOUSING ELEMENT
February 2022
Page H-10 of H-18
Program H-1.2.7. Formalize written procedures for the application and processing of housing projects eligible for streamlined, ministerial approval pursuant to California Government Code Section 65913.4.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Policy
Note: The City is required to comply with California Government Code Section 65913.4 irrespective of whether procedures are formalized in writing.

Program H-1.2.8. Investigate potential incentives for the development of housing projects with features that exceed the minimum requirements set forth in the California Building Energy Efficiency Standards. If feasible and economical, adopt such incentives.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Within Six Months of Each Triennial California Building Standards Code Effective Date for Investigation
Anticipated Funding: General Fund
Quantified Objectives: Report Regarding Investigation;
Adopted Incentives (if applicable)
Policy Objective H-1.3. Provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities.

Program H-1.3.1. Continue to consider transitional housing a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.3.2. Continue to consider supportive housing a residential ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-11 of H-18
use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.3.3. Continue to permit supportive housing by right in all zoning districts where multifamily and mixed uses are permitted.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.3.4. Amend various, existing housing-related provisions of the Laguna Woods Municipal Code to conform to state law.  Section 13.26.070. Remove the conditional use permit requirement for community care facilities serving seven to 12 persons located in areas where residential uses are permitted.
 Section 13.06.010(d)(395). Revise the zoning definition of “family” to address inconsistencies with state law related to the occupants of community care facilities.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Policy Objective H-1.4. Incentivize and promote the creation of accessory dwelling units that can be offered at affordable rent for very low, low-, or moderate-income households.

Program H-1.4.1. Continue to maintain an ordinance that conforms to the provisions of California Government Code Section 65852.2 related ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-12 of H-18
to accessory dwelling units and junior accessory dwelling units, including amending the ordinance as necessary.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.4.2. Prepare and maintain a webpage with information related to Laguna Woods Municipal Code requirements, processing procedures, and incentives pertaining to the development of accessory dwelling units and junior accessory dwelling units. Prepare and maintain a flyer with related information.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Flyer
Program H-1.4.3. Designate and maintain a “specialist” to assist with the processing and approval of applications to develop accessory dwelling units and junior accessory dwelling units.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Designated Specialist
Policy Objective H-1.5. Make sites available to accommodate emergency housing needs for homeless persons and families, in accordance with California Government Code Section 65583(a)(7).

Program H-1.5.1. Continue to maintain an ordinance that conforms to the provisions of California Government Code Section 65583 related to emergency shelters, including amending the ordinance as necessary.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-13 of H-18
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Priority Issue 2. HOUSING CONSERVATION.

Goal H-2. Support the conservation of housing necessary to accommodate current and projected housing needs, including for lower-income households and other special needs populations.

Policy Objective H-2.1. Conserve and improve the condition of the existing affordable housing stock.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Evidence of Training Program H-2.1.2. Investigate potential incentives for property owners to extend existing affordability covenants beyond the planned expiration date. If feasible and economical, adopt such incentives.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2024 for Investigation Anticipated Funding: General Fund
Quantified Objectives: Report Regarding Investigation;
Adopted Incentives (if applicable)
Policy Objective H-2.2. Promote accessible and accommodating housing options for persons with special needs.

Program H-2.2.1. Prepare and maintain a webpage with information on home improvement-related financial assistance opportunities available ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-14 of H-18
to persons with special needs. Train City staff to make referrals using the webpage.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Evidence of Training Program H-2.2.2. Adopt an ordinance waiving or reducing City building permit fees for improvements to the home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability, as provided for by California Health and Safety Code Section 17951.7. Consider including provisions allowing for similar building permit fee waivers or reductions for improvements to the home of a person with a qualifying disability that are made to accommodate that disability, regardless of age. Prepare and maintain a flyer with related information.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance and Flyer
Program H-2.2.3. Provide opportunities for reimbursements, grants, or other forms of financial assistance to support home improvements that increase accessibility or functionality for persons with special needs.

Primary Responsibility: Engineering & Infrastructure Services Department Anticipated Timeline: Calendar Year 2022 (as funding permits) Anticipated Funding: State Permanent Local Housing Allocation monies Quantified Objectives: Financial Assistance Opportunities Policy Objective H-2.3. Promote housing conservation and revitalization.

Program H-2.3.1. Formalize a proactive code enforcement program that focuses on housing-related rehabilitation needs, results in repairs, and seeks to mitigate potential cost, displacement, and relocation impacts on residents.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-15 of H-18
Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2025
Anticipated Funding: General Fund
Quantified Objectives: Conforming Code Enforcement Policies Priority Issue 3. AFFIRMATIVELY FURTHERING FAIR HOUSING.

Goal H-3. Administer housing and community development programs and activities in a manner to affirmatively further fair housing.

Policy Objective H-3.1. Enhance access to housing.

Program H-3.1.1. Improve pedestrian accessibility on sidewalks, curb ramps, crosswalks, and other public property connecting housing with transit stops, public buildings, and businesses.

Primary Responsibility: Engineering & Infrastructure Services Department Anticipated Timeline: Ongoing (as funding permits)
Anticipated Funding: Community Development Block Grants (CDBG) Quantified Objectives: Ongoing Effort
Program H-3.1.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mobility counseling services. If feasible and economical, implement such services.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-16 of H-18
Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Evidence of Training Program H-3.2.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. If feasible and economical, implement such services.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Biennial Process to Identify Interested and Qualified Service Providers; Beginning in Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Service Provider Identification Processes; Implemented Services (if applicable)
Program H-3.2.3. Investigate potential hazard mitigation measures that would reduce or eliminate the long-term risk of residential displacement as a result of future disasters. If feasible and economical, implement such hazard mitigation measures.

Primary Responsibility: Public Safety Services Department Anticipated Timeline: Calendar Year 2024 for Investigation Anticipated Funding: General Fund
Quantified Objectives: Report Regarding Investigation;
Implemented Measures (if applicable)
Note: The investigation called for in this program is a necessary precursor to the potential identification of implementable measures and associated timelines.

The report regarding investigation will provide greater specificity including, as applicable, clear commitments and milestones, and measurable outcomes.

Note: Programs H-1.2.3 (pertaining to inclusionary housing), H-2.2.2 (pertaining to fee waivers or reductions for disability-related improvements), and H-2.2.3 (pertaining to financial assistance for home accessibility improvements) relate to affirmatively furthering fair housing by promoting housing supply, choices, and affordability, but are included under other priority issues in this element ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-17 of H-18
due to the manner in which this element is structured. Similarly, Program H-2.1.2 (pertaining to potential incentives for extended affordability covenants) relates to affirmatively furthering fair housing by protecting existing residents from displacement and Program H-2.3.1 (pertaining to proactive code enforcement) relates to affirmatively furthering fair housing by using placebased strategies to encourage community conservation and revitalization.

Priority Issue 4. HOUSING ELEMENT IMPLEMENTATION.

Goal H-4. Provide for analysis related to housing element implementation.

Policy Objective H-4.1. Conduct annual monitoring of the housing element.

Program H-4.1.1. Host an annual public forum to:
 Provide public education related to the purpose and scope of the housing element, as well as progress in its implementation; and  Solicit public input on the implementation of the housing element, existing and projected housing needs for all economic segments, and resources and constraints relevant to meeting housing needs.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Annually; Beginning in Calendar Year 2023 Anticipated Funding: General Fund
Quantified Objectives: Public Forums
Program H-4.1.2. Prepare and submit an annual report to the City Council, California Governor’s Office of Planning and Research, and HCD with:
 The information required by California Government Code Section 65400(a)(2), in the form and manner specified; and
 A statement regarding the general plan’s internal consistency and, if necessary, the identification of corrective actions that will be taken to resolve any internal inconsistency.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Annually; Prior to April 1
ITEM 7.1 - Exhibit A to Attachment A DRAFT
City of Laguna Woods General Plan

HOUSING ELEMENT
February 2022
Page H-18 of H-18
Anticipated Funding: General Fund
Quantified Objectives: Conforming Reports and Public Meetings Note: Pursuant to California Government Code Section 65400(a)(2)(B)(ii), the annual report information required by California Government Code Section 65400(a)(2) shall be considered at an annual public meeting before the City Council where members of the public are allowed to provide oral testimony and written comments. This program requires certain other information to be included in the annual report, which will also then be subject to consideration at the annual public meeting.

Policy Objective H-4.2. Coordinate implementation of this housing element with the water and sewer agency.

Program H-4.2.1. Deliver each adopted housing element (including amendments thereto) to the El Toro Water District, in accordance with California Government Code Section 65589.7(a).

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Immediately Following Each Adoption Anticipated Funding: General Fund
Quantified Objectives: Conforming Deliveries
Note: California Government Code Section 65589.7(a) generally requires the El Toro Water District to grant a priority for the provision of water and sewer services to housing projects that include housing units affordable to lowerincome households.

EXHIBITS
The following exhibits are attached hereto and incorporated by reference:
 Exhibit A – Housing Needs Assessment
 Exhibit B – Constraints Analysis
 Exhibit C – Housing Sites Inventory and Analysis
 Exhibit D – Housing Element Performance Assessment
 Exhibit E – Public Participation Efforts
ITEM 7.1 - Exhibit A to Attachment A DRAFT
January 2022

EXHIBIT A

HOUSING NEEDS ASSESS MENT

CITY OF LAGUNA WOODS
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
January 2022

HOUSING NEEDS ASSESSMENT

CITY OF LAGUNA WOODS
Submitted to:

City of Laguna Woods
24264 El Toro Road
Laguna Woods, California 92637
Prepared by:

LSA
20 Executive Park, Suite 200
Irvine, California 92614
(949) 553-0666
Project No. LWD2101
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - i

1.0 HOUSING NEEDS ASSESSMENT ............................................................................ 1

1.1 Demographic Profile ............................................................................................................ 1

1.1.1 Population Growth and Trends ............................................................................................. 1

1.1.2 Age Characteristics................................................................................................................ 2

1.1.3 Race and Ethnicity ................................................................................................................. 3

1.1.4 Employment .......................................................................................................................... 3

1.2 Household Profile................................................................................................................. 5

1.2.1 Household Type..................................................................................................................... 5

1.2.2 Household Income................................................................................................................. 6

1.2.3 Special-Needs Populations.................................................................................................... 9

1.3 Housing Stock Characteristics............................................................................................ 17

1.3.1 Housing Growth...................................................................................................................17

1.3.2 Housing Type and Tenure....................................................................................................18

1.3.3 Vacancy Rate .......................................................................................................................18

1.3.4 Housing Age and Condition ................................................................................................. 19

1.3.5 Housing Costs and Affordability ..........................................................................................20

1.3.6 Assisted Housing at Risk of Conversion ...............................................................................23

1.3.7 Existing Housing Needs........................................................................................................24

1.4 Affirmatively Furthering Fair Housing................................................................................ 27

1.4.1 Fair Housing Issues ..............................................................................................................28

1.5 Regional Housing Needs..................................................................................................... 31 ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - ii

FIGURES AND TABLES
FIGURE
Figure 1: Median Household Income (2018) ..........................................................................................7 TABLES
Table A: Regional Population Growth Trends.........................................................................................1 Table B: Age Distribution ........................................................................................................................2 Table C: Racial and Ethnic Composition (2010 and 2018) ......................................................................3 Table D: Occupation of Residents (2018)................................................................................................4 Table E: Household Characteristics (2010 and 2018) .............................................................................6 Table F: HCD Income Categories .............................................................................................................7 Table G: Household Income Levels (2010–2018)....................................................................................8 Table H: Household Income Levels by Tenure (2017) ............................................................................8 Table I: Poverty by Household Type .......................................................................................................8 Table J: Special Needs Groups ................................................................................................................9 Table K: Disability Status.......................................................................................................................12 Table L: Local Facilities for Persons Experiencing Homelessness.........................................................16 Table M: Regional Housing Growth Trends..........................................................................................17 Table N: Housing Units by Type (2000–2020).......................................................................................18 Table O: Housing Tenure (2010 and 2018) ...........................................................................................18 Table P: Age of Housing Stock (2019) ...................................................................................................19 Table Q: Median and Average Market Rents by Number of Bedrooms (April 2021)...........................20 Table R: Annual Median Home Prices (2020–2021) .............................................................................21 Table S: Estimated Affordable Housing Price by Income and Household Size (2021)..........................22 Table T: Inventory of Subsidized Rental Housing for Lower Income Households................................24 Table U: Cost Burden by Tenure ...........................................................................................................24 Table V: Cost Burden by Income Level, Tenure, and Household Type .................................................25 Table W: Overcrowding by Tenure .......................................................................................................26 Table X: Domains and Lists of Indicators for Opportunity Maps..........................................................27 Table Y: Racial/Ethnic Concentrations and Income Levels ...................................................................29 Table Z: Opportunity Map Scores and Categorization (2020) ..............................................................30 Table AA: CalEnviroScreen Scores by Census Tract (2020)...................................................................30 Table AB: Regional Housing Needs Assessment, 2021–2029 ...............................................................32 ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - iii

LIST OF ABBREVIATIONS AND ACRONYMS
AB Assembly Bill
ACS American Community Survey
AFFH Affirmatively Furthering Fair Housing
AMI area median income
CalEnviroScreen California Communities Environmental Health Screening Tool CBC California Building Code
CC Community Commercial
City City of Laguna Woods
CoC Continuum of Care
County County of Orange
CUP Conditional Use Permit
DDS California Department of Developmental Services
FHCOC Fair Housing Council of Orange County
HCD Housing and Community Development Department of the State of California HUD United States Department of Housing and Urban Development LIHTC Low Income Housing Tax Credit
OEHHA Office of Environmental Health Hazard Assessment
RC Residential Community
RHNA Regional Housing Needs Assessment
RMF Residential Multifamily
SCAG Southern California Association of Governments
ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - iv
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 1

1.0 HOUSING NEEDS ASSESSMENT
State Housing Element law requires local governments to adequately plan to meet their existing and projected housing needs, including their share of the Regional Housing Needs Assessment (RHNA) allocation. Specifically, Government Code Section 65583(a) requires an assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. This section of the Housing Element examines the characteristics of Laguna Woods’ population and housing stock as a means of better understanding the nature and extent of unmet housing needs. The Housing Needs Assessment is comprised of the following components: (1) Demographic Profile; (2) Household Profile; (3) Housing Stock Characteristics; (4) Affirmatively Furthering Fair Housing; and (5) Regional Housing Needs.

1.1 DEMOGRAPHIC PROFILE
Demographic changes such as population growth or changes in age can affect the type and amount of housing needed in a community. This section addresses the population, age, and race and ethnicity of Laguna Woods residents.

1.1.1 Population Growth and Trends
Table A presents population growth trends in Laguna Woods from 1990 to 2020 and compares this growth to neighboring jurisdictions and Orange County. As shown, Orange County experienced the highest level of growth during the 1990s (18 percent). Neighboring jurisdictions experienced their highest level of growth during the 2000 to 2010 period (48 percent in Irvine and almost 32 percent in Lake Forest). However, during the 2000 to 2010 period, Laguna Woods experienced a decrease in its population. As will be discussed in further detail below, Laguna Woods residents are significantly older, on average, than the rest of Orange County. This means that Laguna Woods’ population growth due to natural increase (births minus deaths) is slower than other parts of Orange County.

Table A: Regional Population Growth Trends
Jurisdiction 1990 2000 2010 2020 Percent Change
1990–2000 2000–2010 2010–2020
Laguna Woods N/A 17,794 16,273 16,243 N/A -8.55% -0.18% Aliso Viejo N/A N/A 47,816 50,044 N/A N/A 4.66%
Irvine 110,330 143,072 212,375 281,707 29.68% 48.44% 32.65% Laguna Beach 23,170 23,727 22,723 22,343 2.40% -4.23% -1.67% Laguna Hills N/A 29,891 30,270 31,508 N/A 1.27% 4.09%
Lake Forest N/A 58,707 77,395 84,711 N/A 31.83% 9.45%
Orange County 2,410,668 2,846,289 3,010,232 3,194,332 18.07% 5.76% 6.12% Sources: (1) California Department of Finance, Demographic Research Unit, Report E-5; (2) California Department of Finance, Demographic Research Unit, Report E-8 City/County/State Population and Housing Estimates;
(3) California Department of Finance, Demographic Research Unit, E-4 Revised Historical.

N/A = Not Applicable
ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 2
Census data from 2000 to 2010 show that a reduction in the population growth rate for Orange County occurred during the decade. Countywide, population growth dropped to approximately 6 percent, while some local communities, such as Irvine and Lake Forest, experienced robust growth due to the development of new housing. Laguna Woods experienced a population decrease of approximately 9 percent during this period.

While most of the neighboring communities grew modestly between 2010 and 2020, the population of Laguna Woods in 2020 was estimated to be 16,243, approximately less than 1 percent lower than in 2010. The growth rate of Orange County as a whole was 6 percent, more than six times that of Laguna Woods. Of the surrounding communities shown, only Aliso Viejo had a growth rate that was close to that of Orange County. Laguna Woods saw a 0.18 percent population decrease from 2010 to 2020. However, this is much less of a decrease compared to the previous decade.

The Southern California Association of Governments (SCAG) projects that the population of Laguna Woods will grow to 16,500 by 2045. This represents a growth rate of approximately 1.6 percent over the next 25 years. It should be noted that SCAG’s growth projection does not reflect potential population growth due to Laguna Woods’ RHNA allocation, which is discussed in further detail in Section 1.5, Regional Housing Needs.

1.1.2 Age Characteristics
Table B shows the age distribution and median age of Laguna Woods’ population in 2010 and 2018 and compares this with Orange County as a whole. Table B indicates that seniors aged 65 and older were the largest population group in Laguna Woods in 2010 (80 percent) and 2018 (83 percent). The proportion of the population within the younger age groups (under 5 years, 5 to 17 years, and 18 to 24 years) decreased since 2010, while there was an increase in the older adult population. The proportion of seniors (ages 65 and older) increased from 80 percent to 83 percent. However, Laguna Woods’ median age decreased from 78 in 2010 to 75 in 2018.

Table B: Age Distribution
Age Group 2010 2018
Population Percent Population Percent Orange County Percent Under 5 years 33 0.2% 0 0.0% 6.0%
5-17 years 65 0.4% 10 0.1% 17.0%
18-24 years 49 0.3% 23 0.1% 9.5%
25-44 years 179 1.1% 100 0.6% 27.4%
45-64 years 2,982 18.3% 2,666 16.5% 26.6%
65+ years 12,987 79.7% 13,429 82.8% 13.9%
Total 16,295 100.0% 16,228 100.0% 100.0%
Median Age 78 75 38
Sources: (1) 2010 ACS 5-Year Estimates (Table S0101);
(2) 2018 ACS 5-Year Estimates (Table S0101).

Overall, the age distribution for Laguna Woods is skewed toward higher percentages of senior populations compared with Orange County as a whole. As shown in Table B, the percentage of the Laguna Woods’ population that is 65 years of age and older (83 percent) is substantially higher than that of Orange County (14 percent). Laguna Woods’ median age (75) is also substantially higher than ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 3
Orange County’s median age (38). This reflects the fact that a large percentage of Laguna Woods residents live in Laguna Woods Village, an age-restricted retirement community for residents who are 55 years of age and older that occupies a majority of Laguna Woods’ area. The proportion of children (ages 17 and under) and adults aged 18 to 64 are also notably lower in Laguna Woods compared to Orange County.

1.1.3 Race and Ethnicity
Historically, White residents have been the majority racial group within Laguna Woods. Table C displays the racial and ethnic composition of Laguna Woods’ population in 2010 and 2018 and compares this with the countywide distribution. While changes since 2010 have generally been slight, Laguna Woods is trending toward a more diverse population. In 2018, White residents made up 78 percent of Laguna Woods’ population, representing an 11 percent decrease since 2010. The proportion of White residents in Laguna Woods is also notably higher than that of Orange County as a whole (61 percent countywide).

Table C: Racial and Ethnic Composition (2010 and 2018)
Racial/Ethnic Group 2010 2018
Persons Percent Persons Percent Orange County Percent
White 14,499 89.0% 12,678 78.1% 61.7%
Asian/Pacific Islander 1357 8.3% 3,142 19.4% 20.4%
Black or African American 126 0.8% 73 0.4% 1.7%
American Indian 0 0.0% 8 0.0% 0.5%
Other Race 208 1.3% 172 1.1% 11.7%
Two or More Races 105 0.6% 155 1.0% 4.1%
Total 16,295 16,228
Hispanic 723 4.4% 821 5.1% 34.1%
Non-Hispanic 15,572 95.6% 15,407 94.9% 65.9%
Total 16,295 16,228
Sources: (1) 2010 ACS 5-year estimates (Tables C02003 and B03003); (2) 2018 ACS 5-year estimates (Tables C02003 and B03002).

While only representing 19 percent of the total population in 2018, the number of Asian/Pacific Islander residents has increased by 11 percent since 2010. Laguna Woods’ Asian/Pacific Islander population is now on par with Orange County (19 percent compared to 20 percent). Chinese is the predominant Asian ethnicity represented in Laguna Woods, making up approximately 9 percent of Laguna Woods’ total population. There are also large populations of Korean and Filipino residents within Laguna Woods.

The Hispanic population increased by approximately 1 percent from 2010 to 2018. The estimated proportion of Hispanic residents in 2018 was 5 percent, still markedly lower than Orange County, which has an estimated 34 percent Hispanic population.

1.1.4 Employment
An evaluation of the types of jobs held by community residents provides insight into potential earning power and the segment of the housing market into which they fall. Information on how a ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 4
community’s employment base is growing and changing can help identify potential housing demand changes in the future.

The State Employment Development Department estimates that 2,900 Laguna Woods residents (or approximately 18 percent of Laguna Woods’ population) were in the labor force in January 2021.

This reflects the fact that Laguna Woods’ housing stock is predominantly age-restricted. Laguna Woods has seen a drastic increase in unemployment since March 2020 due to the onset of the COVID-19 pandemic. In January 2020, Laguna Woods’ unemployment rate was at 2.2 percent; however, it rose sharply in the spring and peaked at 11.6 percent in May 2020. As of January 2021, the unemployment rate within Laguna Woods was 5.6 percent. The unemployment rate of Orange County was at 2.9 percent in January 2020 and has seen a similar spike. As of January 2021, unemployment in Orange County as a whole was 7.4 percent. While the region’s economy appears to show signs of recovery, the long-term impacts of the COVID-19 pandemic on employment within Laguna Woods and Orange County remain unknown.

Table D presents the occupations of Laguna Woods residents, based on the 2014–2018 American Community Survey (ACS) estimates. The largest proportion of Laguna Woods residents are employed in educational services and health care and social assistance occupations at 22 percent, followed by finance and insurance and real estate, rental, and leasing occupations at 15.6 percent.

Approximately 61 percent of employed residents in Laguna Woods commute less than 25 minutes to work, indicating that a majority of working residents hold jobs within Laguna Woods or in immediately adjacent communities.

Table D: Occupation of Residents (2018)
Occupation Population Percent
Agriculture, forestry, fishing and hunting, and mining 0 0.0% Construction 52 1.7%
Manufacturing 285 9.2%
Wholesale trade 123 4.0%
Retail trade 347 11.2%
Transportation and warehousing, and utilities 78 2.5%
Information 42 1.4%
Finance and insurance, and real estate and rental and leasing 484 15.6% Professional, scientific, and management, and administrative and waste management services
483 15.5%
Educational services, and health care and social assistance 695 22.4% Arts, entertainment, and recreation, and accommodation and food services 249 8.0% Other services, except public administration 188 6.0%
Public administration 83 2.7%
Total Civilians Employed 3,109 100.00%
Source: 2018 ACS 5-year estimates (Table S2405).

Laguna Woods itself has a limited employment base. As of 2019, the five largest employers in Laguna Woods were Laguna Woods Village, Professional Community Management of California, Stater Brothers, Rainbow Realty Corporation, and OCB Restaurant Company.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 5
In 2019, the Orange County Business Council updated the results of its Workforce Housing Scorecard. This report provides a comprehensive evaluation of the current and future state of Orange County’s housing supply and demand and its impact on the business community. Based on the following criteria, the scorecard rates each jurisdiction’s record over the 2016 to 2030 time period in addressing workforce housing needs:
• Total job growth
• Housing as a percent of total Orange County housing
• Jobs-to-housing ratio
• Change in housing density
Based on the above factors, Laguna Woods ranks 33rd of the 34 cities in Orange County. Rankings are weighted toward larger cities and cities experiencing new housing development (Irvine was ranked 1st); therefore, a ranking of 33rd is expected for Laguna Woods, as it is the 31st largest city within Orange County and has not experienced any new housing growth since the development of the San Sebastian Apartments in 2008. It should be noted that Laguna Woods ranked 26th in job growth, indicating a modest need for new housing within Laguna Woods.

1.2 HOUSEHOLD PROFILE
Household type and size, income levels, and the presence of special-needs populations all affect the type of housing needed by residents and are important indicators of where intervention and/or housing programs may be needed. Household income levels are indicators of housing affordability, just as the ratio of owners to renters may impact the stability of the housing market. This section details the various household characteristics affecting housing needs in Laguna Woods.

1.2.1 Household Type
A household is defined as the total number of persons living in a housing unit, whether related or unrelated. The Census Bureau definition of a “family” is a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together; all such people (including related subfamily members) are considered as members of one family. A single person living alone is also a household. “Other” households are unrelated people residing in the same dwelling unit. Group quarters, such as dormitories or convalescent homes, are not considered households.

As shown in Table E, the 2014–2018 ACS estimates there are 11,156 households in Laguna Woods, with an average household size of 1.45 persons and an average family size of 2.07 persons. While the average household size in Laguna Woods saw a 2.8 percent increase from 2010, the average family size decreased by 2.4 percent. Laguna Woods’ average household and family size is lower compared to that of Orange County as a whole (3.02 and 3.51, respectively).

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 6
Table E: Household Characteristics (2010 and 2018)
Household & Family Type 2010 2018 Percent Change Number Percent Number Percent Total Population 16,295 100.0% 16,228 100.0% -0.4%
In Group Quarters 167 1.0% N/A N/A N/A
Total Households 11,470 100.0% 11,156 100.0% -2.7%
Family Households 3,733 32.5% 4,107 36.8% 10.0%
Married Couple Families 3,215 28.0% 3,645 32.7% 13.4%
Single Parent Households 29 0.3% 0 0.0% -100.0%
Non-family Households 7,737 67.5% 7,049 63.2% -8.9%
Householder Living Alone 7,272 63.4% 6,593 59.1% -9.3%
Householder 65+ (Alone) 6,343 55.3% 5,723 51.3% -9.8%
Average Household Size 1.41 1.45 2.8%
Average Family Size 2.12 2.07 -2.4%
Sources: (1) 2010 and 2018 ACS 5-year estimates (Table S1101); (2) 2010 Census (Table PCT38).

N/A = Not Applicable
Nonfamilies constitute the majority of households in Laguna Woods (63 percent). The proportion of single-parent households has also remained steady at approximately 4 percent of all households.

Family households constituted about 37 percent of all households in 2018, an increase of 10 percent since 2010. Approximately 90 percent of family households are married-couple households, and this has increased since 2010. The proportion of householders living alone also decreased between 2010 and 2018.

1.2.2 Household Income
Household income is one of the most important factors affecting housing opportunity and determining a household’s ability to balance housing costs with other basic necessities of life while avoiding housing problems such as cost burden and overcrowding.

1.2.2.1 Income Definitions
The State and federal governments classify household income into several groupings based upon the relationship to the county area median income (AMI), adjusted for household size. The Housing and Community Development Department of the State of California (HCD) utilizes the income groups presented in Table F. Federal housing programs utilize slightly different income groupings and definitions, with the highest income category generally ending at >95 percent AMI. For purposes of the Housing Element, the State HCD income definitions are used throughout, with the exception of data compiled by the United States Department of Housing and Urban Development (HUD), which is specifically noted.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 7
Table F: HCD Income Categories
Income Category Percent Annual Median Income (AMI)
Extremely Low 0-30% AMI
Very Low 0-50% AMI
Low 51-80% AMI
Moderate 81-120% AMI
Above Moderate 120%+ AMI
Source: California Department of Housing and Community Development.

1.2.2.2 Income Characteristics
The 2014–2018 ACS estimated the median annual income of households in Laguna Woods to be $41,928. This is an increase of approximately 13 percent from 2010, when the median annual income was $36,818. Figure 1 illustrates the 2018 median household income for Laguna Woods and surrounding communities and compares them to the median income for Orange County. Of the jurisdictions included, Laguna Woods had a significantly lower median household income than the Orange County median of $85,398.

Figure 1: Median Household Income (2018)
Table G shows the number of Laguna Woods households living within the HCD income categories described above for 2010 and 2017. The number of households within the very low- and low-income categories has decreased overall since 2010. As of 2017, approximately 69 percent of Laguna Woods households fell within one of the lower income categories. The proportion of households with moderate or above-moderate incomes increased from 30.1 percent in 2010 to 31.1 percent in 2017.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 8
Table G: Household Income Levels (2010–2018)
Income Level 2010 2017 2010–2017
Households Percent Households Percent Percent Change
Extremely Low Income (<30% AMI) 2,870 25.2% 2,880 25.6% 0.3% Very Low Income (31-50% AMI) 2,650 23.3% 2,455 21.8% -7.4% Low Income (51-80% AMI) 2,435 21.4% 2,415 21.5% -0.8%
Moderate/Above Moderate Income (>80% AMI) 3,420 30.1% 3,500 31.1% 2.3% Total Households 11,375 100.0% 11,250 100.0% -1.1%
Source: CHAS Data, 2010 and 2017.

AMI = Annual Median Income
Table H shows the income level of Laguna Woods households by tenure. A total of 76 percent of renter households were lower income (<80 percent AMI), compared to 67 percent of owner households. 31 percent of renter households were categorized as extremely low income (<30 percent AMI), and 26 percent were very low income households (31 to 50 percent AMI).

Table H: Household Income Levels by Tenure (2017)
Income Level Renter Owner
Households Percent Households Percent
Extremely Low Income (<30% AMI) 840 31.2% 2,040 23.8%
Very Low Income (31-50% AMI) 685 25.5% 1,770 20.7%
Low Income (51-80% AMI) 505 18.8% 1,910 22.3%
Moderate Income & Above (> 80% AMI) 660 24.5% 2,840 33.2% Total 2,690 100.0% 8,560 100.0%
Source: CHAS Data, 2017.

AMI = Annual Median Income

1.2.2.3 Households in Poverty
The federal government publishes national poverty thresholds that define the minimum income level necessary to obtain the necessities of life. Table I shows the number of households within Laguna Woods living in poverty by household type. A total of 242 households within Laguna Woods are living below the federal poverty threshold, representing approximately 6 percent of all households. Approximately 1 percent of all households in Laguna Woods are female-headed households living below the poverty level. Of these female-headed households living below the poverty level, 9 of the households (or 0.2 percent of all households in Laguna Woods) have children under the age of 18. Another significant group living in poverty are seniors. As shown in Table I, approximately 6 percent of all households in Laguna Woods are senior-headed households living below the poverty level.

Table I: Poverty by Household Type
Household Type Below Poverty Level
Number Percent
Family Households 242 6.1%
Female-Headed Households 36 0.9%
With Children 9 0.2%
Senior-Headed Households (65+) 230 5.8%
Source: 2019 ACS 5-year estimates.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 9

1.2.3 Special-Needs Populations
State law recognizes that certain households have more difficulty in finding adequate and affordable housing due to special circumstances and may also have lower incomes as a result of these circumstances. Special-needs populations include seniors, persons with disabilities, female-headed households, large households, farmworkers, and the homeless. Table J summarizes the specialneeds populations in Laguna Woods. Each of these population groups, as well as their housing needs, is described below.

Table J: Special Needs Groups
Special Needs Group Persons or Households Renter Owner Percent of Total Households with a Senior Member 9,701 -- -- 88.2%
Senior-headed Households 3,495 -- -- 26.3%
Seniors Living Alone 5,622 -- -- 42.3%
Single-Parent Households 0 -- -- 0.0%
Female Single-Parent Households 0 -- -- 0.0%
Large Households (5+ members) 13 0 13 0.3%
Agricultural Workers 0 -- -- 0.0%
Persons with Disabilities 4,364 -- -- 27.3%
Homeless 5 -- -- 0.04%
Sources: (1) 2019 ACS 5-year estimates;
(2) 2019 homelessness point-in-time counts processed by SCAG. -- = Data not available.

1.2.3.1 Large Households
Large households consist of five or more persons and are considered a special-needs group due to the limited availability of affordable and adequately sized housing. Large households often live in overcrowded conditions due to both the lack of large-enough units and insufficient income to afford available units of adequate size. In 2018, Laguna Woods had a total of 13 large households, representing 0.3 percent of total households in Laguna Woods. These large households consisted entirely of owner households (Table J). Laguna Woods has a small number of larger homes compared to many communities in the region, with only 100 housing units (0.9 percent of all occupied housing units) containing four or more bedrooms, according to the 2014–2018 ACS. This suggests that Laguna Woods does not have any unmet housing need for large households.

1.2.3.2 Senior Households
Approximately 83 percent of Laguna Woods residents are age 65 or older. This is an increase from 2010, when 80 percent of the population were seniors. Senior-headed households make up a significant proportion (26 percent) of all households in Laguna Woods. Additionally, 42 percent of all households in Laguna Woods are seniors living alone.

Seniors may have a number of special needs including, housing, transportation, health care, and other services. Approximately 30 percent of Laguna Woods’ senior population has one or more disability that may need to be taken into consideration when finding appropriate housing. Rising rents are a particular concern due to the fact that most seniors are on fixed incomes.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 10
Laguna Woods is unique in that it predominantly comprises private communities that are agerestricted for adults 55 years and older. Of the housing units in Laguna Woods, the majority are located in the private gated community of Laguna Woods Village, with the remaining units in four separate communities. The various housing options, levels of amenities, and services provided at each of these communities are described below. There is a discrepancy of the total number of housing units located in Laguna Woods between City of Laguna Woods (City) records and the United States Census. It should be noted that the City’s records, which reflect the numbers identified below, total 13,386, which is 988 more than what is identified by the United States Census (12,398 housing units).
• Laguna Woods Village: Laguna Woods Village contains 12,736 owned condominium and cooperative units. Owners within Laguna Woods Village pay a homeowners’ association fee that is used to provide residents with public transportation, patrolled private security, clubhouses with special programs, and recreational activities. Also included within the Laguna Woods Village community are two golf courses for the private use of Laguna Woods Village residents. • Las Palmas: Las Palmas is a licensed residential care community with 184 rental units. Services include the dispensing of medication and assistance with bathing, dressing, and other activities of daily living determined by a care plan tailored to specifically meet the individual needs of the residents. Amenities include meal service, transportation, housekeeping, laundry services, and access to recreational facilities, including a putting green, shuffleboard court, pool, and spa.

Activity programs include regular trips to shopping centers and other destinations. • The Regency: The Regency is a licensed residential care community that consists of 192 rental units for seniors and offers both independent and assisted living on a month-to-month basis.

Services and amenities include daily meals, housekeeping, laundry services for bed and bath linens, scheduled transportation, group excursions, and social events. The Regency is the only residential community that, under unique circumstances, will accommodate individuals younger than 55 within its assisted living facility.
• San Sebastian: San Sebastian contains 134 rental units, including 17 affordable units for lowerincome residents. San Sebastian is also an age-restricted independent living apartment facility; therefore, all of the affordable housing units at San Sebastian are reserved for seniors. • Whispering Fountains: Whispering Fountains contains 140 rental units. Although age-restricted, the Fountains operates as an apartment community and does not provide assisted living services, special programs, or amenities.

Several resources for seniors exist in and near Laguna Woods and include the following:
• Age Well Senior Services: This nonprofit organization provides health and wellness programs, home delivery of meals, and nonemergency medical transit service to seniors in Laguna Woods.

The organization operates the Florence Sylvester Memorial Senior Center in neighboring Laguna Hills, where it provides congregate meals, social services case management, senior activities and classes, information, and referral services.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 11
• Foundation of Laguna Woods Village: This nonprofit organization partners with the Laguna Woods Village Social Services Department to provide temporary emergency financial assistance with supermarket cash cards, prescription payments, bill payments for utility services, medical and dental, caregiver and respite care services, taxi vouchers for travel to health care providers in Orange County, and gas cards to qualifying residents of Laguna Woods Village. • Helping Hands Senior Foundation: This nonprofit organization provides social workers who can connect seniors with free or low-cost in-home health care, palliative care, adult day care, medical equipment, food assistance, and financial assistance resources, as well as provide support with navigating health insurance claims and payments. • Laguna Woods Village Social Services Department: This private organization offers social workers who can help Laguna Woods Village residents with short-term counseling, crisis intervention, support groups, educational programs, long-term care planning, and resource referrals.
• Orange County Housing Authority: This government agency is responsible for administering federally funded programs that provide monthly rental assistance to qualified tenants, including low-income seniors, in privately owned rental housing in Orange County. The largest such program is referred to as the Housing Choice Voucher Program. Participants who receive a Housing Voucher can use this rental assistance in a variety of rental dwellings and locations with almost any property owner who is willing to participate in the program.

Based on the available resources in the community, there is no unmet need for senior housing.

1.2.3.3 Single-Parent Households
Single-parent households typically have a special need for such services as childcare and health care, among others, and often live with only one income. According to the 2014–2018 ACS, Laguna Woods did not have any single-parent households with young children (under the age of 18) (Table J). Therefore, Laguna Woods does not have any unmet housing need for single-parent households, including female-headed households.

1.2.3.4 Persons with Disabilities
Under the Americans with Disabilities Act (ADA), an individual with a disability is defined as a person who has a physical or mental impairment that substantially limits one or more major life activities, a person who has a history or record of such an impairment, or a person who is perceived by others as having such an impairment.1 Major life activities include, but are not limited to, caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending,

1 United States Department of Justice. 2020. A Guide to Disability Rights Laws. February. Website:
https://www.ada.gov/cguide.htm#anchor62335 (accessed April 23, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 12
speaking, breathing, learning, reading, concentrating, thinking, communicating, and working.2 Disabled persons often have special housing needs related to limited earning capacity, a lack of accessible and affordable housing, and higher health costs associated with a disability. In recognition of the fact that disabilities can affect a range of major life activities, the ACS questionnaire gathers data about six key disability types: hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care disability, and independent living difficulty. Table K shows the number of Laguna Woods residents with a disability as well as the number of Laguna Woods residents 65 years of age or older that have a disability. According to the 2014–2018 ACS, an estimated 27 percent of Laguna Woods residents (4,364 persons) have one or more disabilities. Approximately 30 percent of the senior population have one or more disabilities.

Table K: Disability Status
Disability Type Persons with
Disability
Percent of
Total
Persons with Disability,
Age 65+
Percent of
Total
With a hearing difficulty 1,844 11.5% 1,733 13.1%
With a vision difficulty 705 4.4% 658 5.0%
With a cognitive difficulty 1,058 6.6% 925 7.0%
With an ambulatory difficulty 2,651 16.6% 2,473 18.7%
With a self-care difficulty 1,180 7.4% 1,123 8.5%
With an independent living difficulty 1,774 11.1% 1,650 12.5% Total Persons with Disabilities 4,364 100.00% 3,972 100.00% Source: 2019 ACS 5-year estimates (Table S1810).

Disabled individuals have unique housing needs because they may be limited in mobility or in their ability to care for themselves. In addition, the earning power of disabled persons may be limited.

Their housing need is also often compounded by design and location requirements, which can drive up housing costs. For example, wheelchair-bound or semi-ambulatory individuals may require ramps, holding bars, special bathroom designs, wider doorways, lower cabinets, and other interior and exterior design features. Affordable housing and housing programs that address accessibility can assist these individuals with their specific housing needs.

There are a number of housing types appropriate for people living with a disability: rent-subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Housing Choice vouchers, special programs for home purchase, HUD housing, and group homes. The design of housing accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving this needs group. Incorporating barrier-free design in all new multifamily housing (as required by California and federal fair housing laws) is especially important to provide the widest range of choices for disabled residents. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income.

2 United States Department of Labor. 2009. ADA Amendments Act of 2008 Frequently Asked Questions. January 1. Website: https://www.dol.gov/agencies/ofccp/faqs/americans-with-disabilities-actamendments#:~:text=Major%20life%20activities%20include%2C%20but,thinking%2C%20communicating %2C%20and%20working (accessed April 23, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 13
Both the federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (that is, modifications or exceptions) in their zoning and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be a reasonable accommodation to allow covered ramps in the setbacks of properties that have already been developed to accommodate residents with mobility impairments.

The City does not require special building codes or onerous project review to construct, improve, or convert housing for persons with disabilities. Community care facilities with six or fewer persons are permitted by right in all residential zoning districts. Community care facilities with seven or more persons are permitted in all residential zoning districts, subject to Conditional Use Permit (CUP) approval. In addition, several housing types for persons with disabilities require a CUP that is no more stringent than those for other conditional uses:
• Congregate care facilities are permitted with an approved use permit in all residential zones and the Community Commercial (CC) zone.
• Family Day Care for 14 or fewer persons is also permitted in the Residential Multifamily (RMF) and Residential Community (RC) zones.

The City has adopted the 2019 California Building Code (CBC). Standards within the CBC include provisions to ensure accessibility for persons with disabilities. These standards are consistent with the Americans with Disabilities Act. No local amendments that would constrain accessibility or increase the cost of housing for persons with disabilities have been adopted.

As discussed previously, Laguna Woods has two residential care facilities that are licensed by the State Community Care Licensing Division of the California Department of Social Services: Las Palmas and the Regency.

1.2.3.5 Developmentally Disabled
According to California Welfare and Institutions Code Section 4512, a developmental disability means “a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual. As defined by the Director of Developmental Services, in consultation with the Superintendent of Public Instruction, this term shall include intellectual disability, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to intellectual disability or to require treatment similar to that required for individuals with an intellectual disability, but shall not include other handicapping conditions that are solely physical in nature.” Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 14
disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.

The California Department of Developmental Services (DDS) estimates that 30 persons with developmental disabilities were residing in Laguna Woods as of December 2020. All of the individuals with developmental disabilities residing in Laguna Woods were over the age of 18, and the majority of the developmentally disabled individuals in Laguna Woods live in the home of their parent, family, or guardian.

The Regional Center of Orange County is one of 21 regional centers in the State that provides point of entry to services for people with developmental disabilities. The center is a private, nonprofit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families.

The most obvious housing need for persons with disabilities is housing that is adapted to their needs. Most single-family homes are inaccessible to people with mobility and sensory limitations.

Housing may not be adaptable to widened doorways and hallways, access ramps, larger bathrooms, lowered countertops, and other features necessary for accessibility. Location of housing is also an important factor for many persons with disabilities, as they often rely upon public transportation to travel to necessary services and shops. “Barrier free design” housing, accessibility modifications, proximity to services and transit, and group living opportunities are important in serving this group.

Within Laguna Woods, there are services currently in place tailored to mobility-impaired individuals including private bus services and subsidized taxi service that supplement public transportation options. The City has also adopted a reasonable-accommodations ordinance designed to reduce barriers for special-needs populations.

1.2.3.6 Homelessness
In collaboration with other nonprofit organizations, the Orange County Department of Community Resources is responsible for the countywide biennial point-in-time homeless count. For the purpose of the point-in-time count, the definition of homelessness includes unsheltered individuals and families “with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or camping ground.” The count of sheltered homeless individuals and families includes those “living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, State, or local government programs for low-income individuals)” on the night designated for the count.

Based upon the 2019 point-in-time count, there were a total of 6,860 homeless individuals residing within Orange County, with 5 individuals counted in Laguna Woods. All of the homeless individuals within Laguna Woods were unsheltered, as there are no homeless shelters located within Laguna Woods. Since 2013, the homeless population in Orange County has steadily increased, with the largest increase occurring between 2017 and 2019 (43 percent increase). The 2019 Count indicated ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 15
that all five of those counted within Laguna Woods were individuals and not part of a family unit experiencing homelessness.

People experiencing homelessness include families and individuals representing every race, age group, and community in Orange County. As the cost of living in Orange County and in all of Southern California continues to rise, and as unemployment remains high, homelessness has become more prevalent.

In the past, several factors have contributed to homelessness, including difficulty in obtaining employment, lack of ongoing care for the mentally ill, substance abuse, and inadequate education.

In recent years, however, a shortage of affordable housing opportunities coincident with a growing population of low-income renters has added to the problem.

Residential care facilities, which are facilities for individuals who require 24-hour supervision but who do not generally need medical care beyond routine health checks and medication monitoring, are permitted in Laguna Woods in any district, planned community, or specific plan area zoned for residential uses. The State of California is the authority for licensing, inspection, and enforcement for community care facilities throughout California. The State has preempted local controls over certain types of residential care facilities.

The County of Orange coordinates a comprehensive regional Continuum of Care (CoC) system to address homelessness in Orange County. The CoC is a housing and service delivery system for the homeless and is designed to do the following:
• Promote communitywide commitment to the goal of ending homelessness through regional coordination and collaboration.
• Advocate for funding and resources to end homelessness and provide funding for proven efforts by nonprofit providers, states, and local governments to quickly rehouse people experiencing homelessness, while minimizing the trauma and dislocation caused to homeless individuals, families, and communities by homelessness.
• Promote access to and effective utilization of mainstream programs by homeless individuals and families.
• Promote implementation of best practices and evidence-based approaches to homeless programing and services.

Other organizations and facilities in nearby or surrounding communities that may provide shelter and services to people experiencing homelessness in Laguna Woods are listed in Table L. It should be noted that some of these facilities prioritize their services to people experiencing homelessness who have a relationship to the cities in which they are located.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 16
Table L: Local Facilities for Persons Experiencing Homelessness Organization/Facility Beds and/or Services Provided
Alternative Sleeping Location Emergency Shelter
(operated by Friendship Shelter)
20652 Laguna Canyon Rd
Laguna Beach, CA 92651
(949) 494-6928
Provides emergency night shelter for up to 45 people, a 30-day rapid housing program, as well as a drop-in day program between the hours of 10:00 a.m. and 1:00 p.m. This organization prioritizes services to those people experiencing homelessness who have a relationship to Laguna Beach.

Bridge Housing Program
(operated by Friendship Shelter)
PO Box 4252
Laguna Beach, CA 92652
(949) 494-6928
Provides dormitory-style housing for up to 32 people at a time, with all meals, case management, and an array of support services provided. Serves 120-140 individuals annually.

This organization also provides a permanent supportive housing program intended for clients who are chronically homeless and are unable to work due to a disability, including physical or mental health conditions. Clients are housed in scattered-site apartments and receive ongoing supportive services from Friendship Shelter staff. This organization prioritizes services to those people experiencing homelessness who have a relationship to Laguna Beach.

Human Options
5540 Trabuco Road
Irvine, CA 92620
(949) 737-5242
Provides emergency shelter for individuals or families in domestic violence situations seeking shelter. Serves approximately 350 adults and children annually. Services include individual and group counseling, case management, legal advocacy, and children’s programs. Also provides a transitional housing program.

Laura’s House
999 Corporate Drive, Suite 225
Ladera Ranch, CA 92694
(949) 361-3775
Provides emergency shelter (52 beds) for up to 45 days for individuals or families in domestic violence situations seeking shelter. Services include individual and group counseling, life skills classes, case management, legal advocacy, and children’s programs.

Also provides transitional housing for 5–7 families at a time for 3–6 months.

Orange County Rescue Mission
One Hope Drive
Tustin, CA 92782
(714) 247-4379
Provides transitional, recuperative, and emergency housing for up to 262 homeless men, women, and children. Services include medical and dental care, meals, job training, case management, substance abuse treatment, parent training, anger management training, mental health care assessment and treatment, housing assistance and placement, and life skills training.

Note: Compiled by LSA, 2021. B based on information from https://www.homelessshelterdirectory.org/ and the individual websites for each service provider.

1.2.3.7 Farmworkers
Farmworkers are traditionally defined as persons whose primary incomes are earned through seasonal agricultural work. Farmworkers have special housing needs because they earn lower incomes than many other workers and move throughout the season from one harvest to the next.

The 2015–2019 ACS estimates that there are no Laguna Woods residents who hold farming, fishing, or forestry occupations. There is no agriculturally designated land within Laguna Woods.

The United States Department of Agriculture National Agriculture Statistics provide state- and county-level data on hired farm labor across the United States. Within Orange County, a total of 99 farms reportedly hired 1,772 workers in 2017. Permanent workers, those who work 150 days or more, represent the largest category of workers with 1,106 workers (62 percent). A total of 666 workers (38 percent) are considered seasonal and work less than 150 days. Orange County ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 17
reported 340 migrant workers (19 percent) with full-time hired labor and 176 unpaid workers in 2017.

Although there are no farmworkers identified within Laguna Woods, the median annual salary for the agriculture, forestry, fishing, hunting, and mining industry in Orange County in 2019 was $24,592, which is 29 percent of the Orange County median income ($85,398) and is considered a very low income (2019). Because farmworkers make up no percentage of Laguna Woods’ total population, no specific programs for this special-needs group are necessary. Given the limited need to provide for farmworker housing in Orange County, the City’s efforts to provide housing at affordable prices to very-low income households should address the needs of permanent and seasonal farmworker populations.

1.3 HOUSING STOCK CHARACTERISTICS
This section identifies the characteristics of Laguna Woods’ physical housing stock. This includes an analysis of housing growth trends, housing conditions, housing prices and rents, and housing affordability.

1.3.1 Housing Growth
Table M shows housing production in Laguna Woods, compared to neighboring cities and Orange County as a whole. According to the California Department of Finance, Laguna Woods experienced a slight reduction in housing units between 2000 and 2010. This is in contrast to Orange County, which saw an almost 8 percent increase in housing stock over the same decade. The surrounding communities of Irvine and Lake Forest saw large amounts of new housing construction in the early 2000s.

Table M: Regional Housing Growth Trends
Jurisdiction Total Housing Units Percent Change
2000 2010 2020 2000–2010 2010–2020
Laguna Woods 13,629 13,079 13,079 -4.0% 0.0%
Aliso Viejo N/A 18,861 20,192 N/A 7.1%
Irvine 53,711 81,110 108,822 51.0% 34.2%
Laguna Beach 12,965 12,923 13,027 -0.3% 0.8%
Laguna Hills 10,324 10,989 11,298 6.4% 2.8%
Lake Forest 20,486 27,161 30,244 32.6% 11.4%
Orange County 969,484 1,046,118 1,111,421 7.9% 6.2%
Sources: (1) CA Dept. of Finance E-8 Historical Population and Housing Estimates, 2010. (2) CA Dept. of Finance E-5 Population and Housing Unit Estimates, 2020.

N/A = Not Applicable
The California Department of Finance estimates that in 2020 there were 13,079 housing units within Laguna Woods. This has remained consistent since 2010. The increase in housing stock in Orange County was notably higher at 6 percent. As Laguna Woods is a maturing suburban community with primarily small site and infill development, it is expected that the increase in the housing stock in Laguna Woods would be modest and lower than the countywide rate.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 18

1.3.2 Housing Type and Tenure
Table N presents the mix of housing types in Laguna Woods. The California Department of Finance estimates that of the 13,079 units in Laguna Woods, 4,639 are single-family units (36 percent).

Approximately 65 percent of Laguna Woods’ housing stock is multifamily units. Laguna Woods also has no mobile home parks within its local housing stock. The composition of Laguna Woods’ housing stock has remained relatively unchanged over the last two decades.

Table N: Housing Units by Type (2000–2020)
Unit Type 2000 2010 2020
Units Percent Units Percent Units Percent
Single-Family (SF) Detached 675 5.3% 918 7.0% 918 7.0%
SF Attached 3,726 29.4% 3,721 28.5% 3,721 28.5%
Total SF 4,401 34.8% 4,639 35.5% 4,639 35.5%
2 to 4 Units 2,298 18.2% 2,237 17.1% 2,237 17.1%
5 or more units 5,934 46.9% 6,203 47.4% 6,203 47.4%
Total Multi-Family 8,232 65.0% 8,440 64.5% 8,440 64.5%
Mobile Homes & Other 15 0.1% 0 0.0% 0 0.0%
Total Housing Units 12,657 100.0% 13,079 100.0% 13,079 100.0% Vacancy Rate 7.52% -- 11.7% -- 10.8% --
Sources: (1) U.S. Census Bureau, 2000 and 2010 Census.
(2) CA Dept. of Finance E-5 Population and Housing Unit Estimates, 2020.

Housing tenure refers to whether a housing unit is owned, is rented, or is vacant. Tenure is an important indicator of the housing climate of a community, reflecting the relative cost of housing opportunities and the ability of residents to afford housing. Tenure also influences residential mobility, with owner units generally evidencing lower turnover rates than rental housing. Table O indicates the total number of renter-occupied and owner-occupied housing units in Laguna Woods in 2010 and 2018. The ownership rate within Laguna Woods has declined slightly from 78 percent in 2010 to 74 percent in 2018. However, the homeownership rate continues to be higher than the countywide homeownership rate of 57 percent.

Table O: Housing Tenure (2010 and 2018)
Occupied Housing
Units
2010 2018
Households Percent Households Percent
Renter 2,523 22.0% 2,851 25.6%
Owner 8,947 78.0% 8,305 74.4%
TOTAL 11,470 100% 11,156 100%
Source: 2010 and 2018 ACS 5-year estimates.

1.3.3 Vacancy Rate
A vacancy rate measures the overall housing availability in a community and is often a good indicator of how efficiently for-sale and rental housing units are meeting the current demand for housing. A vacancy rate of 5 percent for rental housing and 2 percent for ownership housing is generally considered healthy and suggests that there is a balance between the demand and supply of housing. A lower vacancy rate may indicate that households are having difficulty in finding ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 19
housing that is affordable, leading to overcrowding or households having to pay more than they can afford. A low vacancy rate or a particularly tight housing market may also lead to high competition for units, raising rental and housing prices substantially.

The 2014–2018 ACS estimated that the vacancy rate for owner-occupied units was 2.3 percent, and the rental vacancy rate was 5.9 percent. These vacancy rates suggest a relatively healthy housing market for both residents looking to purchase a home and renters.

1.3.4 Housing Age and Condition
The age of a community’s housing stock can provide an indicator of overall housing conditions.

Typically, housing over 30 years in age is likely to have rehabilitation needs that may include new plumbing, roof repairs, foundation work, and other repairs. Table P displays the age of occupied housing stock by tenure as of 2018. Over two-thirds of Laguna Woods’ housing stock was built between 1960 and 1979. Of Laguna Woods’ current housing stock, approximately 98 percent will be over 30 years old by the end of the 2021 to 2029 planning cycle. As a built-out community, Laguna Woods has a low proportion of newer units, with less than 0.8 percent built since 2000.

Table P: Age of Housing Stock (2019)
Year Structure Built Renter-Occupied Units Owner-Occupied Units Total Occupied Units Number Percent Number Percent Number Percent
2010 or later 12 0.4% 0 0.0% 12 0.1%
2000-2009 58 2.0% 14 0.2% 72 0.7%
1980-1999 377 12.9% 391 4.8% 768 7.0%
1960-1979 2,229 76.1% 6,874 85.1% 9,103 82.7%
1940-1959 254 8.7% 718 8.9% 972 8.8%
1939 or earlier 0 0.0% 76 0.9% 76 0.7%
Total 2,930 100.0% 8,073 100.0% 11,003 100.0%
Source: 2019 ACS 5-year estimates.

A greater proportion of rental housing (12.9 percent) was constructed between 1980 and 1999, when compared to owner-occupied housing (4.8 percent). Conversely, a greater proportion of owner-occupied housing was constructed between 1960 and 1979 (85 percent), compared to renter-occupied housing (82 percent).

The City’s code enforcement services provider indicated that the City opened 88 cases in 2019 and 123 cases in 2020, the majority of which related to commercial properties (87.5 percent in 2019 and

86.9 percent in 2020). The City’s code enforcement services provider conducted a windshield survey in early October 2021 of all residential units within Laguna Woods to identify housing units with visible signs of damage or disrepair (e.g., deteriorated roofs, stucco damage, and broken or deteriorated windows) in an effort to estimate the number of housing units that are in need of rehabilitation and replacement. The windshield survey identified only five locations with minor maintenance issues, including minor wood rot, minor water damage on an exterior wall, and a crack at the top of a window. Given the small number of code enforcement cases and limited extent of the issues identified in the windshield survey, it is reasonable to conclude that Laguna Woods is a generally well-maintained community. Most of the City’s housing stock is located within actively ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 20
managed communities with boards or associations and on-site property management that ensure adequate maintenance. Consequently, there are few violations or complaints related to residential properties that require City intervention.

Due to Laguna Woods’ relative lack of substandard housing and health and safety code violations, the City does not require any specialized code enforcement programs (e.g., occupancy inspection, rental inspection, or neighborhood enhancement). Nevertheless, the Housing Element includes a program for the City to formalize a proactive code enforcement program that focuses on housingrelated rehabilitation needs, results in repairs, and seeks to mitigate potential cost, displacement, and relocation impacts on residents. As the name suggests, this effort is meant to be proactive to help promote the good condition and upkeep of Laguna Woods’ housing stock.

1.3.5 Housing Costs and Affordability
The cost of housing is directly related to the extent of housing problems in a community. If housing costs are relatively high in comparison to household income, there will be a higher prevalence of overpayment and overcrowding. This section summarizes the cost and affordability of the housing stock to Laguna Woods residents.

1.3.5.1 Rental Housing Market
According to the 2014–2018 ACS, the rental vacancy rate in Laguna Woods was 5.9 percent, indicating a tight rental market in Laguna Woods. A point-in-time survey of available rental units within Laguna Woods listed on Zillow and Apartments.com was conducted in early April 2021. While not comprehensive, it provides a snapshot of the types of units available, as well as typical market rents. Table Q includes the results of the survey by number of bedrooms.

Table Q: Median and Average Market Rents by Number of Bedrooms (April 2021)
Number of Bedrooms Units Advertised Rent Range Average Rent Median Rent 0 2 $2,320-$2,520 $2,420 $2,420
1 16 $1,550-$2,700 $2,039 $1,825
2 58 $2,150-3,950 $2,378 $2,200
3 5 $2,400-$3,950 $2,964 $2,895
All Units 81 $1,550-3,950 $2,349 $2,200
Source: Zillow.com and Apartments.com, accessed April 9, 2021.

A total of 81 units were listed for rent, with a median rent of $2,200. Two-bedroom units were the most prevalently available in Laguna Woods, with rents ranging from $2,150 to $3,950 and a median rent of $2,200.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 21

1.3.5.2 Homeownership Market
Table R shows median home sale prices over 2 years for Laguna Woods and nearby communities.

The February 2021 median home sales price in Laguna Woods represented a 14.5 percent decrease from February 2020. In contrast, Orange County as a whole experienced an increase in median sales prices during that time period, and many neighboring jurisdictions also saw only slight to moderate increases. With the exception of Laguna Woods, all of the communities listed experienced an increase in home sale prices between February 2020 and February 2021, with Aliso Viejo and Laguna Beach seeing double-digit increases. In February 2021, the median home sales price for Laguna Woods was $325,000, representing a decrease of over 14 percent from February 2020. Given that this price decline is somewhat anomalous in comparison to other nearby cities, it may be tied to the severe impacts that the COVID-19 pandemic has had on the senior population.

Table R: Annual Median Home Prices (2020–2021)
Jurisdiction February 2020
Median Sales Price
February 2021
Median Sales Price
Percent Change
2020-2021
Laguna Woods $380,000 $325,000 -14.5%
Aliso Viejo $545,000 $675,000 23.9%
Irvine $871,500 $900,000 3.3%
Laguna Beach $1,972,500 $2,230,000 13.1%
Laguna Hills $785,000 $813,000 3.6%
Lake Forest $742,000 $789,000 6.3%
Orange County $748,500 $820,000 9.6%
Source: Corelogic.com, California Home Sale Activity by City, February 2021.

1.3.5.3 Housing Affordability
The affordability of housing in Laguna Woods can be assessed by comparing market rents and sales prices with the amount that households of different income levels can afford to pay for housing.

Compared together, this information can reveal who can afford what size and type of housing as well as indicate the types of households that would most likely experience overcrowding or overpayment.

Table S provides estimates of affordable rents and home prices based on HCD’s 2021 income limits for Orange County; current mortgage rates (i.e., 3.0 percent for a 30-year fixed-rate mortgage); and cost assumptions for utilities, taxes, and insurance.

Based on the housing costs presented earlier in Table R, Laguna Woods residents with lower incomes are unable to afford purchasing a home in Laguna Woods. Additionally, based on the overall median rent presented in Table Q, affordable rentals for lower-income households are difficult to find in Laguna Woods.

Extremely Low-Income Households. Extremely low-income households earn 30 percent or less of the AMI. Based on the assumptions utilized for Table S, the affordable home price for an extremely low-income household ranges from $66,158 for a five-person household to $79,721 for a twoperson household; therefore, homeownership is out of reach for Laguna Woods residents within this income category. Affordable rents for extremely low-income households range from $507 to $637 ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 22
Table S: Estimated Affordable Housing Price by Income and Household Size (2021) Annual
Income Limits
Affordable
Monthly
Housing Cost
Utility
Allowance
(2020)
Taxes, Insurance
and HOA
Affordable
Home Price
Affordable
Rent
Extremely Low Income (0–30% AMI)
1-Person (studio) $28,250 $706 $199 $247 $68,591 $507
2-Person (1 bedroom) $32,300 $808 $222 $283 $79,721 $586 3-Person (2 bedroom) $36,350 $909 $293 $318 $78,471 $616 4 Person (3 bedroom) $40,350 $1,009 $372 $353 $74,783 $637 5 Person (4 bedroom) $43,600 $1,090 $457 $382 $66,158 $633 Very Low Income (30–50% AMI)
1-Person $47,100 $1,178 $199 $412 $149,297 $979
2-Person $53,800 $1,345 $222 $471 $171,829 $1,123
3-Person $60,550 $1,514 $293 $530 $182,043 $1,221
4 Person $67,250 $1,681 $372 $588 $190,080 $1,309
5 Person $72,650 $1,816 $457 $636 $190,607 $1,359
Low Income (50–80% AMI)
1-Person $75,300 $1,883 $199 $659 $270,000 $1,684
2-Person $86,050 $2,151 $222 $753 $309,992 $1,929
3-Person $96,800 $2,420 $293 $847 $337,335 $2,127
4 Person $107,550 $2,689 $372 $941 $362,569 $2,317
5 Person $116,200 $2,905 $457 $1,017 $377,130 $2,448
Median Income (80–100% AMI)
1-Person $74,700 $1,868 $199 $654 $267,365 $1,669
2-Person $85,350 $2,134 $222 $747 $306,962 $1,912
3-Person $96,050 $2,401 $293 $840 $334,238 $2,108
4 Person $106,700 $2,668 $372 $934 $358,814 $2,296
5 Person $115,250 $2,881 $457 $1,008 $373,243 $2,424
Moderate Income (100–120% AMI)
1-Person $89,650 $2,241 $199 $784 $331,604 $2,042
2-Person $102,450 $2,561 $222 $896 $380,359 $2,339
3-Person $115,250 $2,881 $293 $1,008 $416,465 $2,588
4 Person $128,050 $3,201 $372 $1,120 $450,462 $2,829
5 Person $138,300 $3,458 $457 $1,210 $471,875 $3,001
Sources: (1) HCD, 2021;
(2) Orange County Housing Authority Utility Allowance Schedule, December 2020; (3) LSA Associates, Inc., 2021.

Assumptions: 2021 HCD income limits; 30.0% gross household income as affordable housing cost; 35.0% of monthly affordable cost for taxes and insurance, 10% down payment; and 3.0% interest rate for a 30-year fixed-rate mortgage loan. Utilities based on Orange County Housing and Community Development Utility Allowance Schedule.

AMI = Annual Median Income
HOA = Homeowners Association
per month. Based on the median rents presented in Table Q, even one-bedroom units are unaffordable for all extremely low-income households. Severe overpayment or overcrowding may occur as a result of the gap between market costs and affordability.

Very Low-Income Households. Very low-income households earn between 30 percent and 50 percent of the AMI. Very low-income households can afford between $979 and $1,359 on monthly rent, depending on household size. However, based on the market rents presented in Table Q, rental units of any size in Laguna Woods would require a very low-income household to pay over the ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 23
affordability threshold of 30 percent. Home ownership is also unaffordable for very low-income households in Laguna Woods, with affordable home prices for this income category ranging from $149,297 to $190,607, well below Laguna Woods’ median home sales price of $325,000 in February 2021.

Low-Income Households. Low-income households earn between 50 and 80 percent of the AMI.

Depending on household size, a low-income household can afford monthly rent between $1,684 and $2,448. Based on the market rents in listed Table Q, low-income households would generally be able to afford some one-bedroom units in Laguna Woods. However, larger rental units are still unaffordable for this income category, which may result in overpayment or overcrowding due to larger families renting smaller units. Based on Table S, low-income households can afford home sale prices between $270,000 and $377,130. Therefore, homeownership remains largely out of reach for this income group when compared with Laguna Woods’ median home sales price as low-income households may only be able to afford the purchase of a small home.

Median-Income Households. Median-income households earn between 80 and 100 percent of the AMI. Median-income households can afford to purchase a home with a purchase price ranging from $267,365 to $373,243. With Laguna Woods’ median home sales price at $325,000 in February 2021, homeownership is affordable for median-income households seeking a smaller home. Medianincome households can afford a monthly rent payment ranging from $1,669 for a one-person household to $2,424 for a five-person household. Based on median market rents within Laguna Woods, median-income households can generally afford one- and two-bedroom rental units, and larger households may be able to afford some lower-priced three-bedroom units. However, fourand five-person households may be overcrowded into smaller units or overpay to afford an appropriately sized unit.

Moderate-Income Households. Moderate-income households earn 100 to 120 percent of the AMI.

Moderate-income households can afford a home sales price ranging from $331,604 to $471,875.

Therefore, with the median home sales price in Laguna Woods at $325,000 in February 2021, homeownership is affordable to households with moderate incomes. Moderate-income households can afford monthly rent from $2,042 for a one-person household to $3,001 for a five-person household. Based on the market rents presented in Table Q, moderate-income households can generally afford one-, two-, and three-bedroom units within Laguna Woods.

1.3.6 Assisted Housing at Risk of Conversion
State Housing Element law requires an analysis of the potential for currently rent-restricted lowincome housing units to convert to market rate housing and to propose programs to preserve or replace any units “at risk” of conversion. This section presents an inventory of all assisted rental housing in Laguna Woods and evaluates those units at risk of conversion during the 8-year 2021 to 2029 planning period.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 24

1.3.6.1 Assisted Housing Inventory
Laguna Woods contains one development of assisted multifamily rental housing with 17 affordable units, as presented in Table T. This inventory includes all multifamily rental units assisted under federal, State, and local programs, including HUD, State/local bond programs, density bonus, inclusionary, and local direct assistance programs. As no units within Laguna Woods are at risk of conversion to market rate units in 10 years or less, an analysis has not been conducted to evaluate the replacement value, qualified entities to manage such a project, or potential funding sources for at-risk units.

Table T: Inventory of Subsidized Rental Housing for Lower Income Households Project Name Tenant Type Total Units Affordable
Units
Applicable
Programs Potential Conversion Date
Not At-Risk
San Sebastian Senior 134 17 Density Bonus October 16, 2054 Total 134 17

1.3.7 Existing Housing Needs

1.3.7.1 Overpayment
Overpayment remains a critical issue for many Laguna Woods residents, particularly renters and lower-income households. Affordability problems occur when housing costs become so high in relation to income that households have to pay an excessive proportion of their income for housing.

According to the metric utilized by HUD, a household is cost burdened if housing costs (including utilities) exceed 30 percent of gross household income. Severe cost burden occurs when housing costs exceed 50 percent of gross income.

Table U indicates the number of cost-burdened households within Laguna Woods by tenure. As shown in Table U, overpayment impacts 70 percent of renter households and nearly 41 percent of owner households. More renter households are also impacted by severe cost burden (45 percent), compared to owner households (22 percent).

Table U: Cost Burden by Tenure
Renter Households Owner Households Total Households
Number Percent of Total Number Percent of Total Number Percent of Total With Cost Burden >30% 1,885 70.1% 3,475 40.6% 5,360 47.6% With Cost Burden >50% 1,210 45.0% 1,875 21.9% 3,085 27.4% Total 2,690 100.0% 8,560 100.0% 11,250 100.0%
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2017 ACS 5-year estimates.

ACS = American Community Survey
HUD = United States Department of Housing and Urban Development ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 25
Table V provides more detailed information on cost burden by income group, tenure, and household type. Overall, cost burden tends to impact proportionately more senior renters than senior homeowners, with the exception of low-income senior renters. Rates of overpayment for small families who rent were 100 percent in the very low and low-income categories. Extremely lowincome small-family households who own their own homes are also heavily impacted, with 97 percent experiencing a cost burden and 83 percent experiencing a severe cost burden. As described earlier, Laguna Woods has very few large-family households. Of the few large-family households in Laguna Woods, none are affected by a high cost burden.

Table V: Cost Burden by Income Level, Tenure, and Household Type Income
Group
Cost
Burden
Seniors Small Family Large Family
>30% >50% Total >30% >50% Total >30% >50% Total
Extremely
Low
(<= 30%
HAMFI2)
Owner 79% 69% 1865 97% 83% 30 0% 0% 0
Renter 87% 86% 800 0% 0% 0 0% 0% 0
Very Low
(31-50%
HAMFI)
Owner 52% 16% 1750 0% 0% 0 0% 0% 0
Renter 77% 57% 635 100% 100% 4 0% 0% 0
Low
(51-80%
HAMFI)
Owner 25% 6% 1780 0% 0% 50 0% 0% 0
Renter 85% 19% 455 100% 0% 20 0% 0% 0
Moderate
(81-100%
HAMFI)
Owner 15% 3% 965 13% 0% 75 0% 0% 0
Renter 65% 0% 200 0% 0% 15 0% 0% 0
Above
Moderate
(>100%
HAMFI)
Owner 3% 0% 1580 0% 0% 105 0% 0% 0
Renter 3% 0% 375 0% 0% 15 0% 0% 0
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2017 ACS 5-year estimates. 1 Data presented in this table are based on special tabulations from the ACS data. Due to the small sample size, the margins for error can be significant. Interpretations of these data should focus on the proportion of households in need of assistance rather than on precise numbers. 2 HAMFI = HUD Area Median Family Income
ACS = American Community Survey
HUD = United States Department of Housing and Urban Development

1.3.7.2 Overcrowding
The United States Census defines overcrowding as an average of more than one person per room in a housing unit, including the living and dining room but excluding kitchens, bathrooms, and hallways. Severe overcrowding occurs when a unit is occupied by more than 1.5 persons per room.

The incidence of overcrowded housing is a general measure of whether there is an available supply of adequately sized housing units. Overcrowding can also occur when housing costs are high in relation to income and families are forced to live together in order to pool income to pay the rent or mortgage. Table W shows the incidence of overcrowding in Laguna Woods by tenure, as estimated by the 2014–2018 ACS.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 26
Table W: Overcrowding by Tenure
Overcrowding Laguna Woods Orange County
Number Percent of Total Number Percent of Total
Owner Occupied Units 8,305 100.0% 592,269 100.0%
Not Overcrowded (1.00 or Less Occupants/Room) 8,292 99.8% 570,469 96.3% Overcrowded

1.01 to 1.50 Occupants/Room 0 0.0% 15,731 2.7%

1.51 or More Occupants/Room 13 0.2% 6,069 1.0%
Renter Occupied Units 2,851 100.0% 440,104 100.0%
Not Overcrowded (1.00 or Less Occupants/Room) 2,851 100.0% 370,391 84.2% Overcrowded

1.01 to 1.50 Occupants/Room 0 0.0% 43,900 10.0%

1.51 or More Occupants/Room 0 0.0% 25,813 5.9%
Total Overcrowded 13 0.1% 91,513 8.9%
Source: 2018 ACS 5-year estimates.

As shown in Table W, an estimated total of 13 households experienced overcrowding in Laguna Woods in 2018, representing just under 0.1 percent of all households in Laguna Woods. Countywide, approximately 9 percent of households experienced overcrowded conditions. All 13 of the households in Laguna Woods that experience overcrowding are in the severe overcrowding category.

1.3.7.3 Displacement and Disproportionate Housing Needs Using the Urban Displacement Project’s Gentrification and Displacement maps, the westernmost areas of Laguna Woods fall into the following displacement typologies: 3

• Stable/advanced exclusive (with risk factors of being susceptible to rent change); • Stable moderate/mixed-income (with risk factors of being located in an area that is susceptible to rent change, has a rent gap, and is a hot market); and • Low-income/susceptible to displacement (with risk factors of being mostly low income, being located in an area that is susceptible to rent change, has a rent gap, and is a hot market).

The eastern and southernmost areas fall into the following displacement typologies:
• At risk of becoming exclusive (with risk factors of being located in an area that is susceptible to rent change and that has a rent gap, and is a hot market); • Low-income/susceptible to displacement (with risk factors of being mostly low income, being located in an area that is susceptible to rent change, has a rent gap, and is a hot market); and • Ongoing displacement (with risk factors of being mostly low income, being located in an area that is susceptible to rent change, has a rent gap, and is a hot market).

3 Los Angeles – Gentrification and Displacement. Urban Displacement Project. Website: https://www. urbandisplacement.org/maps/los-angeles-gentrification-and-displacement/ (accessed October 1, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 27
Job displacement risk varies throughout Laguna Woods, with the lowest rate being 5.2 percent in central Laguna Woods, and the highest rate being 23.8 percent in the easternmost part of Laguna Woods.

In summary, although the majority of Laguna Woods has a low risk of displacement, certain sections of Laguna Woods, particularly the eastern and southernmost areas, and specifically Census Tract 626.46, are either susceptible to displacement or experiencing ongoing displacement, as well as at risk for job displacement.

1.4 AFFIRMATIVELY FURTHERING FAIR HOUSING
In January 2019, Assembly Bill (AB) 686 introduced an obligation to affirmatively further fair housing (AFFH) into California State law. AB 686 defined “affirmatively further fair housing” to mean “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity” for persons of color, persons with disabilities, and other protected classes. AB 686 added an assessment of fair housing to the Housing Element that includes the following components: a summary of fair housing issues and assessment of local fair housing enforcement and outreach capacity, an analysis of segregation patterns and disparities in access to opportunities, an assessment of contributing factors, and an identification of fair housing goals and actions.

To assist in this analysis, HCD and the California Tax Credit Allocation Committee (TCAC) convened the California Fair Housing Task Force to “provide research, evidence-based policy recommendations, and other strategic recommendations to HCD and other related State agencies/ departments to further the fair housing goals (as defined by HCD).” The California Fair Housing Task Force has created opportunity maps to identify resource levels across the State “to accompany new policies aimed at increasing access to high opportunity areas for families with children in housing financed with 9% Low Income Housing Tax Credits (LIHTCs).” These opportunity maps are made from composite scores of four different domains made up of a set of indicators. Table X shows the full list of indicators.

Table X: Domains and Lists of Indicators for Opportunity Maps Domain Indicator
Economic  Poverty
 Adult education
 Employment
 Job proximity
 Median home value
Environmental  CalEnviroScreen 3.0 pollution Indicators and values Education  Math proficiency
 Reading proficiency
 High School graduation rates
 Student poverty rates
Poverty and Racial Segregation  Poverty: tracts with at least 30% of population under federal poverty line  Racial Segregation: Tracts with location quotient higher than 1.25 for Blacks, Hispanics, Asians, or all people of color in comparison to the County Source: California Fair Housing Task Force, Methodology for the 2020 TCAC/HCD Opportunity Maps, June 2020.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 28

1.4.1 Fair Housing Issues

1.4.1.1 Discrimination
The Fair Housing Council of Orange County (FHCOC) works to ensure equal access to housing opportunities and elimination of housing discrimination by providing services throughout Orange County including community education, individual counseling, mediation, and low-cost advocacy.

Questions received by the City regarding potential housing discrimination are referred to the FHCOC. The City does not have a record of the number of issues or complaints within Laguna Woods that the FHCOC has addressed.

According to HUD’s Fair Housing Enforcement and Outreach (FHEO) Inquiries by City data (found in the Fair Housing Enforcement and Outreach Capacity data layer on HCD’s AFFH Data Viewer), Laguna Woods had 0.24 inquiries per 1,000 people between 2013 and 2021. This ratio is slightly higher than the adjacent cities of Laguna Beach (0.17), and Laguna Hills (0.16), but lower than the cities of Irvine (0.28) and Aliso Viejo (0.37). Of the four complaints during this period, two were found to have no valid basis or issue and two were not resolved due to a failure to respond. None of the complaints appear to be associated with discrimination due to disability, race, familial status, national origin, religion, sex, or color.

1.4.1.2 Patterns of Segregation and Minority Concentrations Ethnic and racial composition of a region is useful in analyzing housing demand and any related fair housing concerns, as it tends to demonstrate a relationship with other characteristics such as household size, locational preferences, and mobility. According to the California Fair Housing Task Force Opportunity Maps, none of the census tracts within Laguna Woods are designated as areas with high segregation and poverty.

According to HUD, the definition of a racially/ethnically concentrated area of poverty (R/ECAP) involves a racial/ethnic concentration threshold and a poverty test. The racial/ethnic concentration threshold states that R/ECAPs must have a non-white population of 50 percent or more, and the poverty threshold states that a neighborhood can be identified as a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average poverty rate for the various census tracts in the metropolitan/micropolitan area, whichever threshold is lower.

As Table F in Exhibit C depicts, Laguna Woods does not include any neighborhoods that meet the poverty test because the percentage of residents living below the federal poverty threshold is 15.7 percent or lower in each of Laguna Woods’ census tracts. Table Y provides data regarding race, ethnicity, and median household income in Orange County, Laguna Woods, and each of the eight census tracts that are partially or entirely within Laguna Woods.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 29
Table Y: Racial/Ethnic Concentrations and Income Levels Jurisdiction White1
Black or
African
American1
American
Indian and
Alaska
Native1
Asian1
Native
Hawaiian
and Pacific
Islander1
Some
other
Race1
Hispanic
or Latino
(of any
race)1
Median
Household
Income2
Orange County 64.5% 2.4% 1.1% 22.8% 0.7% 12.8% 34.1% $90,234 Laguna Woods 77.4% 0.7% 0.5% 20.6% 0.1% 2.0% 5.8% $44,020 Census Tract
626.21 66.7% 3.1% 0.3% 33.3% 0.0% 2.2% 12.6% $111,425
Census Tract
626.22 79.0% 0.4% 0.0% 20.0% 0.4% 1.6% 7.9% $44,119
Census Tract
626.25 67.4% 1.1% 0.3% 16.4% 0.5% 19.2% 32.5% $45,214
Census Tract
626.41 68.1% 1.7% 2.6% 20.7% 0.0% 12.1% 22.0% $88,986
Census Tract
626.46 74.3% 2.9% 0.5% 20.1% 0.0% 3.6% 7.0% $41,875
Census Tract
626.47 67.7% 3.7% 0.3% 17.3% 0.0% 11.2% 21.8% $54,327
Census Tract
626.48 76.8% 0.0% 1.6% 20.4% 0.0% 3.1% 4.2% $45,000
Census Tract
626.49 81.0% 0.0% 0.0% 18.9% 0.0% 1.7% 11.8% $60,254
1 American Community Survey, 2019 5-Year Estimates. Table DP05. 2 American Community Survey, 2019 5-Year Estimates. Table S1901.

As Table Y indicates, the White population is the largest race/ethnic group in each of the census tracts in Laguna Woods. There is also a large Asian population that is uniformly present in each of Laguna Woods’ eight census tracts, with a slightly larger percentage of Asians (33.3 percent) present in Census Tract 626.21. As shown in Table Y, the median household income in Census Tract 626.21 ($111,425) is substantially higher than Laguna Woods overall. The only census tracts with slightly outlying ethnic compositions are Census Tracts 626.41 and 626.47, where 22.0 percent and 21.8 percent of the population is Hispanic or Latino (of any race), respectively. However, it should be noted that the median household income in these two census tracts is higher than Laguna Woods overall, suggesting that these areas are slightly more affluent than others. This information points to the absence of R/ECAPs in Laguna Woods.

1.4.1.3 Access to Opportunities
Table Z shows the California Fair Housing Task Force Opportunity Map composite scores, domain scores, and categorization for all eight of the census tracts that are partially or entirely within Laguna Woods. The majority of the census tracts within Laguna Woods are categorized as Low Resource areas. There are three census tracts within Laguna Woods that are categorized as Moderate Resource areas (of these, two are “Rapidly Changing”) and one census tract (Census Tract 626.49) is categorized as a High Resource area. Census Tract 626.49 is located in the westernmost portion of Laguna Woods (west of Avenida Sosiega) adjacent to the Woods End Wilderness Preserve.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 30
Table Z: Opportunity Map Scores and Categorization (2020) Census Tract Economic Domain
Score
Environmental
Domain Score
Education
Domain Score
Composite
Index Score Final Category
626.21 0.74 0.516 0.38 0.029 Moderate Resource
(Rapidly Changing)
626.22 0.005 0.542 0.203 -0.63 Low Resource
626.25 0.132 0.787 0.503 -0.064 Moderate Resource
626.41 0.598 0.821 0.442 0.144 Moderate Resource
(Rapidly Changing)
626.46 0.021 0.799 0.291 -0.423 Low Resource
626.47 0.127 0.511 0.343 -0.335 Low Resource
626.48 0.002 0.925 0.388 -0.439 Low Resource
626.49 0.34 0.882 0.7 0.283 High Resource
Source: California Fair Housing Task Force, TCAC/HCD Opportunity Maps, 2020 Statewide Summary Table.

Access to high-quality public transportation can also be looked at as an indicator of access to opportunities. AllTransit is a database created by the Center for Neighborhood Technology to explore metrics that reveal the social and economic impact of transit, specifically looking at connectivity, access to jobs, and frequency of service. AllTransit’s overall evaluation was that Laguna Woods had a low combination of trips per week and number of accessible jobs, enabling few people to take transit to work. Specifically, while the vast majority of jobs within Laguna Woods are located within 0.5 mile of transit and Laguna Woods residents can access over 90,000 jobs within a 30-minute transit commute, the transit quality within Laguna Woods is low. There are only four transit routes within Laguna Woods, and none of them offer high-frequency service as defined by AllTransit, making commuting by means of public transportation difficult.

The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening methodology to help identify California communities disproportionately burdened by multiple sources of pollution, called the California Communities Environmental Health Screening Tool (CalEnviroScreen). High-scoring communities tend to be more burdened by pollution from multiple sources and most vulnerable to its effects, taking into account their socioeconomic characteristics and underlying health status. Scores for census tracts within Laguna Woods are listed in Table AA.

Scores for Laguna Woods range between 4.81 and 28.08, which are relatively low. The highestscoring area within Laguna Woods is the census tract on the southeast side of Laguna Woods near Interstate 5 (Census Tract 626.47).

Table AA: CalEnviroScreen Scores by Census Tract (2020) Census Tract CalEnviroScreen Score CalEnviroScreen Percentile 626.21 6.37 21
626.22 15.18 37
626.25 12.47 37
626.41 4.81 18
626.46 18.9 44
626.47 28.08 54
626.48 10.56 32
626.49 6.30 22
Source: CA Office of Environmental Health Hazard Assessment (OEHHA), CalEnviroScreen 4.0 Draft.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 HOUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 31

1.5 REGIONAL HOUSING NEEDS
State law requires all regional councils of governments to determine the existing and projected housing need for its region and determine the portion allocated to each jurisdiction. This is known as the RHNA process. State Housing Element law requires that each city and county develop local housing programs to meet its “fair share” of existing and future housing needs for all income groups, as determined by the jurisdiction’s Council of Governments. This fair-share allocation concept seeks to ensure that each jurisdiction accepts responsibility for the housing needs not only of its resident population but also for the jurisdiction’s projected share of regional housing growth across all income categories. Regional growth needs are defined as the number of units that would have to be added in each jurisdiction to accommodate the forecasted number of households, as well as the number of units that would have to be added to compensate for anticipated demolitions and changes to achieve an “ideal” vacancy rate.

In the six-county Southern California region, which includes Laguna Woods, the agency responsible for assigning these regional housing needs to each jurisdiction is SCAG. The regional growth allocation process begins with the California Department of Finance’s projection of statewide housing demand for a 5-year planning period, which is then apportioned by HCD among each of the State’s official regions. SCAG has determined the projected housing need for its region for the 2021 to 2029 Housing Element cycle and has allocated this housing need to each jurisdiction by income category through the RHNA process. The RHNA represents the minimum number of housing units each community is required to provide “adequate sites” for through zoning, and is one of the primary threshold criteria necessary to achieve HCD certification of the Housing Element.

In allocating the region’s future housing needs to jurisdictions, SCAG is required to take the following factors into consideration:
• Market demand for housing
• Employment opportunities
• Availability of suitable sites and public facilities
• Commuting patterns
• Type and tenure of housing
• Loss of units in assisted housing developments
• Overconcentration of lower-income households
• Geological and topographical constraints
As defined by the RHNA process, Laguna Woods’ new construction need for the 2021 to 2029 planning period has been established at 997 new units, distributed among the four income categories as shown in Table AB. Of the 127 Very Low Income units included in the City’s RHNA, approximately 50 percent (or 63 units) should be made available to Extremely Low Income households. The City will continue to provide sites for a mix of single-family, multifamily and mixeduse housing, supported by a variety of programs to enhance affordability, to accommodate its RHNA and contribute toward addressing the growing demand for housing in the Southern California region.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 202 2
Exhibit A - 32
Table AB: Regional Housing Needs Assessment, 2021–2029
Income Level Number of Units Percent of Total RHNA
Very Low* (<50% of AMI) 127 12.7%
Low (50-80% of AMI) 136 13.6%
Moderate (80-120% of AMI) 192 19.3%
Above Moderate (>120% of AMI) 542 54.4%
Total 997 100%
* Based on current household income data presented in Table G, the City estimates that 63 (or approximately 50 percent) of the 127 units included in its Very Low Income allocation should be made available to Extremely Low Income households.

AMI = Annual Median Income
ITEM 7.1 - Exhibit A to Attachment A DRAFT
January 2022

EXHIBIT B

CONSTRAINTS ANALYSIS

CITY OF LAGUNA WOODS
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
January 2022

CONSTRAINTS ANALYSIS

CITY OF LAGUNA WOODS
Submitted to:

City of Laguna Woods
24264 El Toro Road
Laguna Woods, California 92637
Prepared by:

L AGUNA WOODS , C ALIFORNIA
Exhibit B i

TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................... i FIGURES AND TABLES ............................................................................................................................. ii LIST OF ABBREVIATIONS AND ACRONYMS............................................................................................ iii

1.0 HOUSING CONSTRAINTS ...................................................................................... 1

2.0 GOVERNMENTAL CONSTRAINTS.......................................................................... 3

2.1 Land Use Controls ................................................................................................................ 3

2.2 Residential Development Standards.................................................................................... 7

2.2.1 Affordable Housing Density Bonus........................................................................................ 8

2.2.2 Small-Lot Development ......................................................................................................... 9

2.2.3 Special-Purpose Zoning Districts ........................................................................................... 9

2.3 Provision for a Variety of Housing Types ............................................................................. 9

2.3.1 Single-Family Housing............................................................................................................ 9

2.3.2 Multifamily Housing .............................................................................................................. 9

2.3.3 Live/Work Units...................................................................................................................10

2.3.4 Senior Housing.....................................................................................................................10

2.3.5 Manufactured Housing and Mobile Homes ........................................................................11

2.3.6 Accessory Dwelling Units.....................................................................................................11

2.3.7 Residential Care Facilities....................................................................................................12

2.3.8 Single Room Occupancy ......................................................................................................13

2.3.9 Emergency Shelters and Low Barrier Navigation Centers...................................................13

2.3.10 Transitional Housing and Supportive Housing.....................................................................16

2.3.11 Employee Housing ...............................................................................................................17

2.4 Housing for Persons with Disabilities................................................................................. 17

2.4.1 Zoning and Land Use ...........................................................................................................17

2.4.2 Building Codes.....................................................................................................................19

2.4.3 Conclusion ...........................................................................................................................20

2.5 Site Improvements............................................................................................................. 20

2.6 Development Fees ............................................................................................................. 21

2.7 Local Processing and Permit Procedures........................................................................... 22

2.7.1 Conditional Use Permit........................................................................................................23

2.7.2 Conclusion ...........................................................................................................................23

2.8 Building Codes.................................................................................................................... 24

2.9 Federal and State Regulations ........................................................................................... 25

2.9.1 State Prevailing Wage Requirements..................................................................................25

2.9.2 Environmental Protection ...................................................................................................25

2.9.3 State Transparency Requirements ......................................................................................25

3.0 MARKET CONSTRAINTS ..................................................................................... 27

3.1 Availability of Financing ..................................................................................................... 27

3.2 Foreclosures ....................................................................................................................... 27

3.3 Development Costs............................................................................................................ 28

3.3.1 Land Availability and Cost....................................................................................................28

3.3.2 Cost of Construction ............................................................................................................28 ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B ii

4.0 INFRASTRUCTURE CONSTRAINTS ....................................................................... 31

4.1 Water..................................................................................................................................31

4.2 Wastewater ........................................................................................................................31

4.3 Transportation Infrastructure.............................................................................................32

5.0 ENVIRONMENTAL CONSTRAINTS ....................................................................... 35

5.1 Flooding ..............................................................................................................................35

5.2 Seismic and Geologic Hazards............................................................................................35

5.3 Wildfires ..............................................................................................................................36

5.4 Noise ...................................................................................................................................36 FIGURE
Figure 1: Zoning Map ..............................................................................................................................5 TABLES
Table A: Residential Land Use Designations...........................................................................................3 Table B: Residential Development Standards.........................................................................................7 Table C: Residential Parking Requirements............................................................................................8 Table D: Housing Types Per Zoning Code .............................................................................................10 Table E: Development Standards for the Community Facilities Zoning Districts ................................. 14 Table F: Current Residential Development Processing Fees................................................................. 21 Table G: Comparison of Processing Fees..............................................................................................21 Table H: Typical Permit Processing Timelines.......................................................................................22 Table I: Disposition of Home Purchase and Improvement Loan Applications (2019) ..........................27 Table J: San Joaquin Hills Transportation Corridor Development Impact Fees (2021) ........................33 ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B iii

LIST OF ABBREVIATIONS AND ACRONYMS
AB Assembly Bill
ADA Americans with Disabilities Act
ADU accessory dwelling unit
CBC California Building Code
CC Community Commercial
CEQA California Environmental Quality Act
CF-P Community Facilities—Private
CF-PI Community Facilities—Public/Institutional
CIP Capital Improvement Program
City City of Laguna Woods
CUP Conditional Use Permit
ETWD El Toro Water District
FAR floor area ratio
FEMA Federal Emergency Management Agency
FIRM Flood Insurance Rate Maps
ft foot/feet
HMDA Home Mortgage Disclosure Act
Lanterman Act Lanterman Developmental Disabilities Services Act OCTA Orange County Transportation Authority
RC Residential Community
RT Residential Towers
SB Senate Bill
sf square foot/feet
SFHA Special Flood Hazard Area
SRO Single Room Occupancy
UWMP Urban Water Management Plan
WRP Water Recycling Plant
ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B iv
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 1

1.0 HOUSING CONSTRAINTS
The City of Laguna Woods’ (City) Housing Element seeks to ensure the provision of adequate housing to meet the existing and projected needs of all economic segments of the community.

Many factors, including market mechanisms, government regulations and policies, and infrastructure and environmental constraints, can constrain the development, maintenance, and improvement of housing. This Constraints Analysis addresses the potential and actual governmental constraints upon the development, maintenance, or improvement of housing that may affect the supply and cost of housing in Laguna Woods, as required by Government Code Section 65583(a).1

1 California Department of Housing and Community Development. 2021. Codes and Enforcement of Onsite/ Offsite Improvement Standards. Website: https://www.hcd.ca.gov/community-development/buildingblocks/constraints/codes-and-enforcement-on-offsite-improvement-standards.shtml (accessed June 11, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 2
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 3

2.0 GOVERNMENTAL CONSTRAINTS
Actions or policies of governmental agencies, whether involved directly or indirectly in the housing market, can impact the ability of the development community to provide adequate housing to meet consumer demands. For example, the impact of federal monetary policies and the budgeting and funding policies of governmental agencies can either stimulate or depress various aspects of the housing industry. State and local government compliance, and the enactment of sanctions for noncompliance, with federal laws may also have an impact on the housing industry.

State and local government compliance with State laws can complicate the development of housing.

Statutes such as the California Environmental Quality Act (CEQA) and rezoning and General Plan amendment procedures required by the Government Code can prolong the review and approval of development proposals by local governments. In many instances, compliance with such mandates includes time constraints that cannot be altered by local governments.

City policies can also impact the price and availability of housing. Land use controls, site improvement requirements, building codes, fees, and other local programs to improve the overall quality of housing may serve as constraints to housing development.

2.1 LAND USE CONTROLS
The City’s General Plan and Zoning Code provide for a range of residential land use designations and zoning districts. The City’s Zoning Map is included as Figure 1. Land use designations that allow for residential development are presented in Table A.

Table A: Residential Land Use Designations
General Plan Land Use Designation Max. Density Description Low Density Residential <10 du/ac Includes all dwelling units equipped for independent living (i.e., kitchen, bathroom, and
sleeping quarters). Facilities intended for transient
living, such as hotels and motels and hospitals and
skilled nursing units, are not typically included.

Medium Density Residential 10–12 du/ac
High Density Residential 13–35 du/ac
Residential Community
<10 du/ac
or
10-12 du/ac
depending on
location
Encompasses nearly all of the Laguna Woods
Village planned residential community with the
exception of Rossmoor Towers. Integrates a mix of
single-family detached, single-family attached, two
family, and multi-family residential, with supporting
country clubs, parks, community services, localserving noncommercial services, and open spaces.

Common areas are managed by private nonprofit
community associations.

Source: Land Use Element (City of Laguna Woods 2017).
du/ac= dwelling unit(s) per acre
max. = maximum
ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 4
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
SOURCE: City of Laguna Woods
MILES
0 .25 .5
FIGURE 1
I:\LWD2101\G\Zoning_Map.ai (6/10/2021)
Laguna Woods Constraints Analysis
Zoning Map
ITEM 7.1 - Exhibit A to Attachment A
DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 6
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 7

2.2 RESIDENTIAL DEVELOPMENT STANDARDS
The City’s Zoning Code contains development standards for each zoning district consistent with the land use designations of the General Plan. The Zoning Code establishes development standards for each zoning district to ensure quality development and reduce the potential for land use conflicts.

Residential development standards are summarized in Table B.

Table B: Residential Development Standards
Development Standard Residential Multifamily
(RMF)
Residential Community
(RC)
Residential Towers
(RT)
Maximum Building Height (ft) 65 40 None
Minimum Building Site Area (sf) 7,200 None None
Minimum Area per Unit (sf) 1,0001 None2 None2
Minimum Setback (ft)
Front Yard 20 None3 None
Side Yard from ROW 5 None3 None
Rear Yard from ROW 25 None3 None
Side Yard not abutting ROW 5 None3 None
Rear Yard not abutting ROW 254 None3 None
Distance between Principal Structures
(ft) 10 None3 None
Maximum Building Site Coverage 50% 50%5 None2
Source: Zoning Ordinance (City of Laguna Woods 2020).
1 The minimum per dwelling unit is based on the net land area. 2 There shall be no minimum lot size. The total number of residential units permitted within the planning unit shall not be exceeded, as was shown on the statistical analysis for the original planned community, as amended. The dwelling densities as categorized in the City’s General Plan as low-density, medium-density, and high-density shall not be exceeded. The limitations contained within the General Plan shall take precedence over any discrepancies that may exist as compared to the statistical analysis for the planning units. 3 Required yards and distances between building structures are waived. 4 In computing the depth of a rear setback from any building where such setback opens on an alley, private street, or public park, onehalf of the width of such alley, street, or park may be deemed to be a portion of the rear setback, except that under this provision, no rear setback shall be less than 15 ft. 5 The building site coverage shall not exceed 50 percent of the land area contained within each recorded tract, exclusive of dedicated ROW. Swimming pool coverage shall not be considered as building site coverage.

City = City of Laguna Woods
ft = foot/ feet
ROW = right-of-way
sf = square foot/feet
The cumulative effect of the City’s residential development standards does not constrain the expansion of housing opportunities. Density standards are consistent with the densities established for General Plan land use categories. The setback requirements provide minimal light and air for development, are typical in the region, and do not unreasonably constrain housing opportunities.

All residential uses are currently required to provide the number of parking spaces as outlined in Table C. Developers of affordable and senior housing who are eligible for a density bonus pursuant to Government Code Sections 65919 through 65918 are eligible to use parking standards established by State law. Density bonus provisions are discussed in more detail later in this section.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 8
Table C: Residential Parking Requirements
Use Parking Requirement
Attached or detached single-family
dwellings  2 covered parking spaces for each dwelling unit.

Two or more dwelling units on one
building site.
 Studio to 1-bedroom: 1.5 parking spaces for each dwelling unit  2-bedroom: 2 parking spaces for each dwelling unit
 3-bedroom and up: 2.5 parking spaces for each dwelling unit plus 0.5 parking space for each bedroom in excess.

Multifamily dwelling units (five or
more dwelling units)
 Each dwelling unit shall be assigned at least one standard-size parking space.  Additional unassigned parking spaces shall be provided using the following formula, which is based on the size of each unit:
o <700 sf: 0
o 701–800 sf: +0.17
o 801–900 sf: +0.34
o 901–1,000 sf: +0.50
o 1,001–1,100 sf: +0.67
o 1,101–1,200 sf: +0.84
o 1,201–1,300 sf: +1.0
o 1,301–1,400 sf: +1.18
o 1,401–1,500 sf: +1.34
o >1,500 sf: +1.5
 1 guest parking space per every 4 dwelling units, rounded up to the next nearest whole number, shall be provided.

Source: Zoning Code (City of Laguna Woods 2020).
sf = square foot/feet
The City monitors its development standards and their impact on development. Periodically, the City will amend the Zoning Code to ensure that development standards respond to market trends. The City has adopted other provisions in the Zoning Code that facilitate a range of residential development types and encourage affordable housing, as discussed below.

2.2.1 Affordable Housing Density Bonus
Section 13.26.040 of the City’s Zoning Code provides the details of the residential density bonus provision, which is intended to provide incentives for the production of housing for very lowincome, lower-income, or senior households in accordance with California Government Code Sections 65915 and 65917. On September 16, 2020, the City amended its Density Bonus Ordinance to ensure compliance with the current State law in effect at that time. Assembly Bill (AB) 1763 made a number of changes to density bonus requirements for affordable projects. The bill requires a density bonus to be granted for projects that include 100 percent lower-income units, but allows up to 20 percent of total units in a project that qualifies for a density bonus to be for moderate-income households. Under the revised law, density bonus projects must be allowed four incentives or concessions, and for developments within 0.5 mile of a major transit stop, a height increase of up to three additional stories or 33 feet (ft). A density bonus of 80 percent is required for most projects, with no limitations on density placed on projects within 0.5 mile of a major transit stop. The bill also allows developers to request the elimination of minimum parking requirements for rental units affordable to lower-income families that are either supportive housing or special-needs housing, as defined. AB 2345, which was signed in September 2020, further incentivizes the production of ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 9
affordable housing. The City Council adopted updated residential density bonus standards regulations in December 2021.

In 2008, the San Sebastian senior apartments were completed with 17 units affordable to lowincome residents. The development utilized a density bonus, and, as a result, the affordable units are subject to deed restrictions, which will ensure continued affordability through October 16, 2054.

2.2.2 Small-Lot Development
The City has not established any zoning districts that are intended to specifically facilitate small-lot residential development; however, the City’s Zoning Code does not require minimum lot sizes in the Residential Community (RC) and Residential Tower (RT) zoning districts.

2.2.3 Special-Purpose Zoning Districts
Special-purpose zoning districts permit design and development standards to be established that are tailor-made for planned project areas with unique attributes. The City’s Zoning Code includes the RC zoning district, which provides for the development and preservation of planned unit developments with a mixture of single-family attached and detached homes and multifamily homes.

Neighborhoods in the RC district are characterized by controlled physical access and specialized recreation facilities. Setbacks and other development standards are to be tailored specifically to each project by means of a precise development plan that is approved with the project.

2.3 PROVISION FOR A VARIETY OF HOUSING TYPES
State Housing Element law specifies that local governments must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of various types of housing for all economic segments of the population, including multifamily residential housing, factory-built housing, emergency shelters, transitional housing, and supportive housing. Table D summarizes the housing types permitted in each of the City’s zoning districts.

2.3.1 Single-Family Housing
Single-family housing is permitted by right in the Residential Multifamily (RMF) and RC districts. As outlined in the City’s Zoning Code, standard development in the RC district shall be predominantly of multiunit, multistoried structures and single-family, one-story structures in an arrangement of attached or detached dwellings and their accessory structures.

2.3.2 Multifamily Housing
Multifamily housing is permitted by right in the RMF, RC, and RT districts. The RMF zoning district is intended to provide for the development and preservation of high-density multifamily residential neighborhoods with a moderate amount of open space. Care is taken to ensure that uses approved in the RMF zoning district are compatible with surrounding residential neighborhoods. RMF-zoned properties are located in three areas of Laguna Woods off major roadways. The RC district was created to provide for the development and preservation of planned unit developments with a mixture of single-family attached and detached homes, as well as multifamily homes.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 10
Table D: Housing Types Per Zoning Code
Land Use Types
Zoning District
Residential
Multifamily (RMF)
Residential
Community (RC)
Residential Towers
(RT)
Accessory Building/Use A A A
Accessory Dwelling Unit P P P
Condominiums/Stock Cooperatives U U U
Community Apartment Projects U U U
Community Care Facilities (<6 persons) P P P
Congregate Care Facility U U U
Duplex P U X
Dwelling, Multiple-Family P P P
Dwelling, Single-Family P P X
Emergency and Transitional Housing Shelters X X X
Guesthouse X A X
Junior Accessory Dwelling Unit P P P
Mobile Home P P X
Mobile Home Development U U X
Planned Unit Development U U U
Residential Tract Sales & Rentals T/SE T/SE T/SE
Supportive Housing P P P
Transitional Housing P P P
Source: Zoning Code (City of Laguna Woods 2020).

A = Permitted only as an accessory to a Principal Use
P = Permitted as a Principal Use
T/SE = Permitted with an approved Temporary Use/Special Event permit U = Permitted with an approved use permit
X = Prohibited
RC-zoned properties encompass most of the land within Laguna Woods, reflecting its planned community heritage. The RT district was established to provide for the development and preservation of high-rise multifamily structures. RT-zoned properties exist in one small area in the western portion of Laguna Woods. Additional development standards are applicable to multifamily housing with more than five dwelling units on site, including standards related to circulation, lighting, waste disposal, and infrastructure.

2.3.3 Live/Work Units
The City’s Zoning Code does not currently include any zoning districts that allow for live/work units.

2.3.4 Senior Housing
Section 13.06.010 of the City’s Zoning Code defines senior citizen housing as “a residential development consisting of at least 35 dwelling units which is developed for, or substantially rehabilitated or renovated for, senior citizens.” Additionally, California Civil Code Section 51.3 defines “senior citizen” as a person 62 years of age or older, or 55 years of age or older, in a senior citizen housing development, and “senior citizen development” as a residential development developed, substantially rehabilitated, or substantially renovated for senior citizens that has at least 35 dwelling units.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 11
Section 13.26.030 of the City’s Zoning Code, which provides details about housing incentive use permits for affordable or senior citizen housing, states that in any zoning district that permits residential uses, a housing incentive use permit application to permit more dwelling units than allowed by zoning, and/or establish special site development standards, may be approved for the purposes of facilitating affordable and/or senior citizen housing developments.

2.3.5 Manufactured Housing and Mobile Homes
Manufactured housing and mobile homes offer an affordable housing option for many low- and moderate-income households. Manufactured housing is permitted by right in all zoning districts that permit single-family dwelling units, as required by State law. Mobile homes are permitted in the RMF and RC districts, and mobile home parks are permitted in those same zoning districts with an approved use permit. Mobile home developments are subject to additional development standards not related to the use; instead, the standards relate to landscape screening and design. According to California Department of Finance estimates, there were no mobile homes in Laguna Woods as of January 2020.2

According to the National Manufactured Home Construction and Safety Act of 1974, a manufactured home built and certified after June 15, 1976 and constructed on a permanent foundation may be located in any residential zoning district where a conventional single-family detached dwelling is permitted subject to the same restrictions on density and to the same property development regulations. Manufactured homes are currently allowed in all residential zoning districts, subject to foundational regulations found in Government Code Section 65852.3. Manufactured housing is treated the same as single-family dwellings and is subject to the same property development standards and permitting process. The City’s Zoning Code requires manufactured housing to be architecturally compatible (roofing overhangs, roofing materials, exterior siding, stucco, etc.) with single-family dwellings.

2.3.6 Accessory Dwelling Units
Per Government Code Section 65852.2, an “accessory dwelling unit” (ADU) is defined as “an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.” ADUs may be an alternative source of affordable housing for lower-income households and seniors.

The City has updated its Zoning Code to permit ADUs by right if they are contained within the space of a proposed or existing single-family dwelling or accessory structure, or existing multifamily dwelling. This update to the City’s Zoning Code was made to comply with State requirements, with Government Code Section 65852.2 used as a baseline for the amendments.

2 California Department of Finance. 2020. E-5 Population and Housing Unit Estimates. Website:
https://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-5/ (accessed June 11, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 12
Recent State legislation, including AB 68, AB 587, AB 881, and Senate Bill (SB) 13, addresses standards and regulations for ADUs. The bills modified the fees, application process, and development standards for ADUs, with the goal of lowering barriers to ADU development and increasing overall numbers of ADUs. Key provisions include the following:
• Prohibiting standards related to lot coverage standards, lot size, floor area ratio (FAR), or open space that have the effect of limiting ADU development
• Allowing ADUs within or attached to attached garages, storage areas, or accessory structures • Removing requirements to replace parking when a garage or carport is demolished to develop an ADU
• Prohibiting maximum sizes for ADUs that are less than 850 square feet (sf) (1,000 sf for units with two or more bedrooms)
The City last updated its Zoning Code with regard to ADUs in 2020 to address the requirements of AB 68, AB 587, AB 881, and SB 13.

2.3.7 Residential Care Facilities
The Lanterman Developmental Disabilities Services Act (Lanterman Act) is a State law that sets out the rights of persons with developmental disabilities. The Lanterman Act impacts local zoning ordinances by requiring the use of property for the care of six or fewer disabled persons to be classified as a residential use, permitted by right, under zoning provisions. More specifically, a stateauthorized, certified, or licensed family care home, foster home, or a group home serving six or fewer disabled persons or dependent and neglected children on a 24-hour-a-day basis is considered a residential use that is to be permitted in all residential zoning districts. No local government can impose stricter zoning or building and safety standards on these homes. Due to the unique characteristics of larger (more than six persons) residential care facilities, most local governments require a discretionary use permit to ensure neighborhood compatibility in the siting of these facilities.

The City’s Zoning Code accommodates both large and small residential care facilities. The City facilitates and encourages the development of residential care facilities by treating licensed facilities that serve six or fewer persons as standard residential uses, consistent with State law. As such, community care facilities are permitted by right in all residential zoning districts. Additionally, community care facilities serving seven to 12 persons, except for large family day care homes, are permitted in any district, planned community, or specific plan area zoned for residential use, subject to the issuance of a use permit. The use permit is intended to ensure that the development is consistent with applicable zoning. In a supportive housing development, housing can be coupled with social services such as job training, alcohol and drug abuse programs, and case management for populations in need of assistance, such as the homeless, those suffering from mental illness or substance abuse problems, and the elderly or medically frail. Because supportive housing is a residential use, it would be treated as such in the development process whether the supportive housing development consisted of single-family detached units or apartment buildings. Similar to ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 13
other multifamily developments, the required use permit process is intended to establish appropriate and unique development standards for residential development in the RC and RT zoning districts, as the zoning regulations contain few standards. This allows for greater specificity in development standards.

Review of the California State Community Care Licensing Division inventory of community care facilities identifies two residential care facilities in Laguna Woods. These facilities are for individuals who require 24-hour supervision but who do not generally need medical care beyond routine health checks and medication monitoring. Las Palmas is a licensed residential care community with 184 rental units, and the Regency is a licensed residential care community that consists of 192 rental units and offers both independent and assisted living on a month-to-month basis. The Regency is the only residential community that, under unique circumstances, will accommodate individuals younger than 55 within its assisted living facility.

2.3.8 Single Room Occupancy
Single Room Occupancy (SRO) facilities are small, one-room units occupied by a single individual and may either have shared or private kitchen and bathroom facilities. SROs are rented on a monthly basis typically without rental deposit and can provide an entry point into the housing market for extremely low-income individuals, formerly homeless persons, and disabled persons.

The City has adopted provisions in its Zoning Code (Section 13.26.170) to accommodate and regulate the establishment of SRO uses. These provisions include the following requirements:
• In the absence of findings as set forth in alternatives to off-street parking requirements, provision of one-half parking space for each guest unit, plus one space for each employee • Submittal of a management plan outlining management policies, operations, emergency procedures, a security program, rental procedures, maintenance plans, and staffing as part of the use permit application
• Provision of an on-site manager on a 24-hour basis
• Provision of a single manager’s unit, which shall be designed as a complete residential unit and be a minimum of 225 sf in size.

SRO uses are permitted in any zoning district or specific plan area zoned for hotels, subject to the approval of a use permit. Furthermore, the City’s Zoning Code states that SROs will be treated as nonresidential uses.

2.3.9 Emergency Shelters and Low Barrier Navigation Centers An emergency shelter is a facility that provides shelter to homeless families and/or homeless individuals on a limited short-term basis. According to the 2019 Point-in-Time Count for Orange ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 14
County,3 there were five unsheltered people living in homelessness in Laguna Woods. State law requires emergency shelters to be permitted by right in at least one zoning district where adequate capacity is available to accommodate at least one year-round shelter. The City’s Zoning Code was amended in 2011 to include regulations pursuant to State law for emergency and transitional housing.

The City’s Zoning Code Section 13.23.010 was also amended in 2018 to permit emergency shelters in the Community Facilities – Public/Institutional (CF-P/I) and Community Facilities – Private (CF-P) zoning districts as a by-right use.

Table E provides the development standards that apply to the CF-P and CF-P/I zoning districts.

Table E: Development Standards for the Community Facilities Zoning Districts
Development Standard CF-P CF-P/I
Maximum Building Height (ft) 40 40
Minimum Building Site Area (sq ft) — —
Minimum Building Site Width (ft) — —
Minimum Perimeter Setback (ft)
From Street ROW 20 20
From Alley 10 0
From Residential Districts 10 10
From Nonresidential Districts 0 0
Maximum FAR 0.3 0.3
Maximum Building Site Coverage None None
Parking See Code Section 13.16.300-400
Landscaping See Code Section 13.16.250
Screening See Code Section 13.16.240
Signs See Code Section 13.16.410-530
Waste Management/Hazardous Materials See Code Section 13.20.200 Source: Laguna Woods Municipal Code Section 13.13.030.

FAR = floor area ratio
ft = foot/feet
ROW = right-of-way
sq ft = square foot/feet
In addition to application of the CF-P/I and CF-P district development standards, pursuant to Government Code Section 65583, the City can also specify written, objective standards to regulate the following aspects of emergency shelters to enhance compatibility:

3 United to End Homelessness. Point-In Time Count. 2019. Website: https://www.unitedtoend homelessness.org/2019-point-in-time-count (accessed April 29, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 15

1. Location and Separation: Emergency shelters shall be situated more than 300 ft from another emergency shelter.

2. Physical Characteristics:
a. The maximum number of beds for emergency shelters shall be 20 unless a larger number is approved through a conditional use permit.
b. The maximum number of beds does not apply in situations of citywide or statewide designated disasters or catastrophic conditions as determined by the City Council or City Manager.
c. Emergency shelters shall have adequate private living space, shower and toilet facilities, and secure storage areas for its intended clients.
d. All on-site waiting and client intake areas shall be located in the interior of the emergency shelter and shall be of sufficient size to prevent any such activities from occurring in the exterior of the emergency shelter.

The CF-P/I and CF-P zoning districts have high access to public transit services. The Orange County Transportation Authority has two local routes, Routes 90 and 89, which provide regional access along the public streets located immediately adjacent to the CF-P/I and CF-P zoning districts.

The City provides adequate and accessible sidewalks, vehicular access, and bicycle access to the CF-P/I and CF-P zoning districts.

The CF-P/I and CF-P zoning districts are surrounded by residential, open space, and/or community commercial land uses, and are therefore not located in close proximity to any uses that would create hazardous conditions or conditions inappropriate for human habitability.

The City’s Zoning Code requires the following conditions to be met for emergency shelters in order to ensure “adequate” private living space requirements.

1. Operational Standards.
(1) If an emergency shelter includes a drug or alcohol abuse counseling component, appropriate state and/or federal licensing shall be required. (2) Emergency shelters shall limit occupancy by each client to no more than 180 days in a 365-day period.
(3) Emergency shelters shall conduct all on-site waiting and client intake activities in the interior of the emergency shelter and prevent any such activities from occurring in the exterior of the emergency shelter.
(4) Emergency shelters shall provide on-site security during all hours of operation, including a minimum of one security guard licensed by the State of California for ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 16
each 20 clients, unless alternate security arrangements are approved through a conditional use permit.
(5) Emergency shelters shall provide on-site management during all hours of operation, including a minimum of one supervisor per emergency shelter and a minimum of one additional attendant for each 20 clients, unless alternate on-site management arrangements are approved through a conditional use permit.

AB 139 requires that emergency shelters provide parking to accommodate all staff, “provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.” The City’s Zoning Code does not contain unique parking standards for emergency shelters.

AB 101 requires cities to allow a Low Barrier Navigation Center development by right in areas zoned for mixed uses and nonresidential zoning districts permitting multifamily uses if it meets specified requirements. A “Low Barrier Navigation Center” is defined as “a Housing First, low-barrier, serviceenriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” Low Barrier Navigation Centers may include options such as allowing pets, permitting partners to share living space, and providing storage for residents’ possessions. AB 101 also sets a timeline for jurisdictions to act on applications for Low Barrier Navigation Center developments. The requirements of this bill are effective through the end of 2026, at which point they are repealed.

2.3.10 Transitional Housing and Supportive Housing
Health and Safety Code Section 50675.2 defines “transitional housing” and ”transitional housing development” as buildings configured as rental housing developments but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. Residents of transitional housing are usually connected to supportive services designed to assist the homeless in achieving greater economic independence and a permanent, stable living situation. Transitional housing can take several forms, including group quarters with beds, single-family homes, and multifamily apartments, and typically offers case management and support services to help return people to independent living (often in six months to two years).

Government Code Section 65582 defines supportive housing as housing with no limits on the length of stay that is occupied by a “target population” and links this population with the provision of housing and social services. “Target population” means persons with low incomes who have one or more disabilities, including mental illness, HIV/AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Act (Division 4.5 [commencing with Section 4500] of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people (Government Code Sections 65582(f) and (g)).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 17
State law requires transitional and supportive housing to be defined as a residential use and subject only to the same regulations as comparable residential uses. The City currently permits emergency shelters by right in the Community Facilities - Public/Institutional (CF-P/I) and Community Facilities - Private (CF-P) zoning districts with the intent to provide adequate development and operational standards for such uses to ensure that the appropriate housing and services for special needs populations are met.

AB 2162 requires supportive housing projects of 50 units or fewer to be permitted by right in zoning districts where multifamily and mixed-use developments are permitted, when the development meets certain conditions. The City may choose to allow larger supportive housing projects by right in those zoning districts. The bill also prohibits minimum parking requirements for supportive housing within 0.5 mile of a public transit stop.

2.3.11 Employee Housing
The City has no land zoned for agriculture and does not contain any agricultural land uses. Further, the 2015–2019 American Community Survey estimates there are no residents who hold farming, fishing, or forestry occupations. Therefore, there is no need for farmworker housing.

Further, because the City has not adopted any ordinances relating to employee housing, it does not anticipate that any other facilities or employers would provide housing for their employees.

2.4 HOUSING FOR PERSONS WITH DISABILITIES
Both the federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling.

The City has conducted a review of zoning and building code requirements and permitting procedures to identify potential constraints for housing for persons with disabilities. The City’s policies and regulations regarding housing for persons with disabilities are described below.

2.4.1 Zoning and Land Use
Restrictive land use policies and zoning provisions can constrain the development of housing for persons with disabilities.

2.4.1.1 Definition of Family
Local governments may restrict access to housing for households failing to qualify as a “family” by the definition specified in the Zoning Code. Specifically, a restrictive definition of “family” that limits the number of and differentiates between related and unrelated individuals living together may ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 18
illegally limit the development and siting of group homes for persons with disabilities, but not for housing families that are similarly sized or situated.4 Section 13.06.010(d)(395) of the Zoning Code defines “family” as “One or more persons occupying one dwelling unit. The term "family" includes the occupants of community care facilities serving six or fewer persons that are permitted or licensed by the State. The term "family" does not include occupants of a fraternity, sorority, boardinghouse, lodginghouse, club, or motel.” To accommodate disabled persons in public facilities, the City defers to the California Access Compliance Reference Manual from the Department of General Services, Division of the State Architect.

The Housing Element includes a program to amend the Zoning Code’s definition of “family” to resolve inconsistencies between the current definition and applicable state law.

2.4.1.2 Residential Care Facilities
Under the Lanterman Act, small licensed residential care facilities for six or fewer persons must be treated as regular residential uses and permitted by right in all residential zoning districts. The City permits small licensed residential care facilities in all residential zoning districts and does not have additional development standards for these facilities and is, therefore, in compliance with the Lanterman Act.

The Housing Element includes a program to amend the Zoning Code to remove the requirement for residential care facilities for seven to 12 persons to obtain a conditional use permit.

2.4.1.3 Parking Standards
Development in the City is required to meet parking standards for people with disabilities, as required by State law, including requirements for the number and design of disabled parking spaces.

2.4.1.4 Reasonable Accommodation
The Fair Housing Act requires that local governments provide reasonable accommodation to rules, policies, practices, and procedures where such accommodation may be necessary to afford individuals with disabilities equal opportunity to housing. To create a process for making requests for reasonable accommodation to land use and zoning decisions and procedures regulating the siting, funding, development and use of housing for people with disabilities, the City has adopted a Reasonable Accommodations Ordinance in accordance with State law (Section 13.15.010 of the

4 California court cases (City of Santa Barbara v. Adamson, 1980 and City of Chula Vista v. Pagard, 1981, etc.) have ruled an ordinance as invalid if it defines a “family” as: (a) an individual; (b) two or more persons related by blood, marriage, or adoption; or (c) a group of not more than a specific number of unrelated persons as a single housekeeping unit. These cases have explained that defining a family in a manner that distinguishes between blood-related and non-blood related individuals does not serve any legitimate or useful objective or purpose recognized under the zoning and land use planning powers of a municipality, and therefore violates rights of privacy under the California Constitution.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 19
City’s Zoning Code). The Reasonable Accommodations Ordinance provides for flexibility in the City’s development standards to accommodate persons with disabilities.

The following findings are required to approve reasonable accommodation requests:

1. The requested accommodation is requested by or on the behalf of one or more individuals with a disability protected under the fair housing laws;

2. The requested accommodation is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling;

3. The requested accommodation will not impose an undue financial or administrative burden on the city;

4. The requested accommodation will not result in a fundamental alteration in the nature of a city program or law, including but not limited to land use or zoning; and

5. The requested accommodation will not, under the specific facts of the case, result in a direct threat to the health and safety of other individuals or substantial physical damage to the property of others.

2.4.2 Building Codes
The City enforces the California Building Code (CBC), including Chapters 11A (Housing Accessibility) and 11B (Accessibility to Public Buildings, Public Accommodations, Commercial Buildings and Publicly Funded Housing), which regulate the access and adaptability of buildings to accommodate persons with disabilities. Furthermore, Government Code Section 12955.1 requires that 10 percent of the total dwelling units in multi-family buildings without elevators consisting of three or more rental units or four or more condominium units are subject to the following building standards for persons with disabilities:
• The primary entry to the dwelling unit shall be on an accessible route unless exempted by site impracticality tests.
• The public and common areas shall be readily accessible to and usable by persons with disabilities.
• All the doors designed to allow passage into and within all premises shall be sufficiently wide to allow passage by persons in wheelchairs.
• All premises within covered multifamily dwelling units shall contain the following features of adaptable design:
○ An accessible route into and through the covered dwelling unit. ○ Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 20
○ Reinforcements in bathroom walls to allow later installation of grab bars around the toilet, tub, shower stall, and shower seat, where those facilities are provided. ○ Useable kitchens and bathrooms so that an individual in a wheelchair can maneuver about the space.

Compliance with the CBC, Government Code, and federal Americans with Disabilities Act (ADA) is assessed and enforced by the Building Division as a part of the building permit process. The City has not adopted any amendments to the CBC that diminish the ability to accommodate persons with disabilities.

2.4.3 Conclusion
The City has not adopted unique restrictions that constrain the development of housing for persons with disabilities nor has it adopted regulations inconsistent with applicable federal or State law.

There are no City-initiated constraints on housing for persons with disabilities caused or controlled by the City. In addition, the City has adopted formalized criteria and processing procedures for reasonable accommodation applications within its Zoning Code.

2.5 SITE IMPROVEMENTS
Developers of single-family residential tracts in the City are required to install arterial and local streets; sewer and water lines; storm drainage; curbs, gutters, and sidewalks; street lighting; underground utilities; and landscaping in the public right-of-way within and adjacent to a tract, if such facilities do not already exist. In most cases, these facilities are dedicated to the City or other agencies that are responsible for ongoing maintenance. Requirements for site improvements are at a level necessary to meet the City's costs and are necessary to protect health, safety, and welfare.

The cost of required off-site improvements vary with the sales price of each dwelling unit depending on the nature of development (i.e., level of improvements required). The City may also impose development impact fees on future housing developments in order to recover costs of installing offsite improvements including upgrading the circulation system and other urban service systems to serve increased density. The developed portions of Laguna Woods have the majority of necessary infrastructure, such as streets, electrical and water facilities, already in place. However, due to the age of the existing infrastructure, many areas where infill housing development is expected to occur may require infrastructure improvements to ensure sufficient capacity at build-out.

The City’s Zoning Code includes minimum street width standards. Private streets serving four or less parcels as access to a public street are required to provide for a minimum pavement width of 16 feet within a minimum 20 ft wide right-of-way. Private streets serving five parcels or more as access to a public street are required to provide for a minimum pavement width of 28 ft within a minimum 40 ft wide right-of-way. Sidewalks are required to not be less than 6 ft in width. Streets in residential districts requiring a building site area of 15,000 sf or more and where no sidewalks are to be installed, are required to have a right-of-way that will provide a parkway width of at least 4 ft.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 21

2.6 DEVELOPMENT FEES
The City collects various fees from developers to cover the costs of processing permits, including fees for planning approvals, subdivision map act approvals, environmental review, public works and plan check services, and building permits, among others. In addition to these service fees associated with development processing, the City also charges several impact fees to offset the future impact of development on parks and traffic circulation.

Table F lists residential development processing fees, based off the fee schedule that is effective July 19, 2021. Prior to this update, the City’s fees were last updated in 2020. There were no significant increases to planning/development and building fees.

Table F: Current Residential Development Processing Fees Development Fees Initial Deposit
Conditional Use Permit $4,000
Development Agreement $10,000
Environmental Impact Report $10,000
General Plan Amendment $10,000
Zoning Code Amendment $10,000
Initial Study/Negative Declaration/Mitigated Negative Declaration $5,000 Sign Program $2,500
Site Development Permit $4,000
Specific Plan $10,000
Variance $3,500
Zone Change $10,000
Sources: City of Laguna Woods (2021).

Note: Unless otherwise noted, all fees are the minimum fee for the service. The final fee is based on actual costs, which may exceed the minimum fee.

Table G provides a comparison of the City’s fees with other cities in the region. As shown, the City’s fees are generally comparable to other cities.

Table G: Comparison of Processing Fees
Fee Type Laguna
Woods Laguna Niguel Laguna Hills Lake Forest
Conditional Use Permit $4,000 $3,800 $8,148.07 $2,400-5,000 Variance $3,500 $3,800 $6,293.38 $5,000
Zone Change $10,000 $5,000 $10,522.43 $10,000
General Plan Amendment $10,000 $5,000 $7,547.86 $10,000 Tentative Tract Map Varies  Preliminary Screencheck: $1,425 (Flat)  Filing: $2,925 + $25/each lot (Deposit)
 Added Lots to Filed Map: $36/each lot (Flat)
 Changed Map: $370 (Flat)
 Appeal to City Council: $585 (Flat)
 Amendment to Conditions: $155 (Flat)
 Amend Approved Map: $1,000 + $36/each numbered
lot (Deposit)
$9,182.99 $10,000
Tentative Parcel Map Varies  Preliminary Screencheck: $980 (Flat)  Filing: $2,080 (Deposit)
 Appeal to City Council: $235 (Flat)
$9,182.99 $7,500
ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 22
Table G: Comparison of Processing Fees
Fee Type Laguna
Woods Laguna Niguel Laguna Hills Lake Forest
 Amendment to Conditions: $155 (Flat)
 Amend Approved Map: $1,000 + $36/each numbered
lot (Deposit)
Sources: City of Laguna Woods (2020); City of Laguna Niguel (2020); City of Laguna Hills (2020); City of Lake Forest (2020).

Note: The fees listed above are generally approximated base fees or deposits; if the cost of providing the service exceeds the base fee or deposit, the balance is collected from the applicant.

In general, fees can be a constraint on housing development and compromise affordability because the additional cost borne by developers contributes to overall increased housing unit cost. However, the City’s fees are necessary to maintain adequate planning services and other public services and facilities.

As noted elsewhere in this Constraints Analysis, the City has not processed a residential development application since the San Sebastian Apartments in the mid-2000s. Since that date, the City has evaluated the adequacy and rationality of its fees, and made changes to recover its reasonable costs of providing services, as allowed by state law. While some building fees have increased as a result of this evaluation, others have been eliminated. For example, the City no longer collects parkland dedication (Quimby Act) fees nor library development fees on behalf of the Orange County Library District. In addition, the County of Orange intends to end the Moulton ParkwayLaguna Niguel Road Fee Program as early as June 30, 2022, thereby eliminating those fees.

Therefore, there is a strong likelihood that current development fees for a similar residential project would actually be the same or lower than what was assessed for the San Sebastian Apartments project. Due to the City’s current fee structure, this would particularly be true if several of the requisite building inspections were consolidated.

The City’s development fees do not appear to represent a constraint on housing development.

2.7 LOCAL PROCESSING AND PERMIT PROCEDURES
Development review and permit processing procedures are necessary steps to ensure that residential construction proceeds in an orderly manner.

Table H outlines the development review processing times and approval procedures for residential developments. Depending on the type of discretionary approval that is required, a one or two-level decision-making process may be required. The City’s process is somewhat more streamlined than many other cities in that the City Council also serves as the Planning Commission.

Table H: Typical Permit Processing Timelines
Action/Request Processing Time Comments
Environmental Impact Report 9-12 months Processing and review time limits controlled through CEQA. Adopted by the City Council.

Initial Study/Mitigated Negative
Declaration
6-9 months Processing time can be extended if the project has a longer review and approval period. Adopted by the City
Council.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 23
Table H: Typical Permit Processing Timelines
Action/Request Processing Time Comments
General Plan Amendment 10–12 months Government Code Section 65358 limits the number of times any element of the General Plan can be amended
each calendar year. Requires a public hearing for the City Council.

Zone Change 8–12 months Certain procedures and time limits established by Gov.

Code Sections 65854-65857. Approved by the City Council.

Tentative Parcel Map 45–60 days Approved by the City Council.

Tentative Tract Map 6–8 months Approved by the City Council.

Variance 3–4 months Approved by the City Council.

Conditional Use Permits 3–4 months Approved by the City Council.

CEQA = California Environmental Quality Act

2.7.1 Conditional Use Permit
Conditional Use Permits (CUPs) are required for some multi-family development, senior housing projects, and large residential care facilities, dependent upon the underlying zoning district. As shown in Table H, the processing time for a CUP is typically 90 to 120 days.

The City’s Zoning Code establishes the same required findings for the approval of all CUP applications, regardless of proposed use:

1. The proposed location of the conditional use is consistent with the requirements of the general plan and the zoning district in which the site is located;

2. The proposed location of the conditional use and the conditions under which it would be operated or maintained would not be detrimental to the public health, safety, or general welfare, nor would be materially injurious to properties or improvements in the vicinity; and

3. The proposed conditional use would comply with all applicable provisions of this zoning ordinance.

It should be noted that the City’s CUP requirement only applies to condominiums and apartments in existing residential zones and would not apply to the “by-right” overlay zoning districts to be created through the Housing Element’s rezoning program. Although the CUP requirement does not affect the City’s housing supply, it could affect affordability but, again, not within the “by right” overlay zoning districts to be created through the Housing Element’s rezoning program.

2.7.2 Conclusion
Although the City has not processed an application for a residential development project since the San Sebastian Apartments in the mid-2000s, it is committed to working closely with developers to approve residential projects in a timely manner and minimize any potential time constraints on development. For a typical project, the developer would meet with Planning Division staff to discuss the project and then would submit plans for a preliminary review. Plans would then be submitted to the Building Division for plan check and building permit issuance. Projects requiring a CUP would be ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 24
evaluated based on the criteria listed above and reviewed by the City Council prior to plans being submitted for plan check. The City does offer concurrent processing of planning and building plans if so desired by the applicant. Throughout construction, the Building Division would perform inspections to monitor the progress of the project. This process is comparable to that of many cities in the region; therefore, processing times would be typical for the region.

2.8 BUILDING CODES
As required of all local governments in California, the City enforces the CBC. The CBC establishes construction standards necessary to protect public health, safety, and welfare and all new constructions and renovations must conform to the standards of the CBC.

Based on recommendations from the Orange County Fire Authority (OCFA), the City has adopted several amendments to the CBC, which revised the following chapters:
• Scope and administration;
• Definitions;
• General requirements;
• Emergency planning and preparedness;
• Fire service features;
• Fire protection and life safety systems;
• Construction requirements for existing buildings;
• Energy systems;
• Fruit and crop ripening;
• Fumigation and insecticidal fogging;
• Lumber yards and agro-industrial, solid biomass and woodworking facilities, • Requirements for wildland-urban interface fire areas; • Hazardous materials;
• Explosives and fireworks;
• Flammable and combustible liquids;
• Flammable gases and flammable cryogenic fluids;
• Referenced standards; and
• The various appendices.

More information on these changes can be found in the City’s Municipal Code. Compliance with the CBC, and the City’s locally adopted amendments to the CBC, should not significantly add to the cost of construction since the CBC is mandated to be enforced statewide and costs should be relatively uniform statewide. In addition, because the OCFA serves as a regional fire protection agency, the County of Orange and 22 other member cities have adopted substantially similar amendments, which means that the cost of complying with the City’s amendments to the CBC is substantially similar to most of the other cities in Orange County. Costs associated with the CBC and any locally adopted amendments are necessary to protect the health safety and welfare of the citizens.

Compliance ensures that all new or renovated buildings are structurally sound, have proper exiting, and are equipped with necessary fire protection features. In addition, the CBC mandates energy efficiency as well as provisions for access for persons with disabilities.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 25

2.9 FEDERAL AND STATE REGULATIONS
Federal and State requirements may act as a barrier to the development or rehabilitation of housing, and affordable housing in particular. These include State prevailing wage requirements and environmental review requirements.

2.9.1 State Prevailing Wage Requirements
Labor Code Section 1720, which applies prevailing wage rates to public works of over $1,000, defines public works to mean construction, alteration, installation, demolition, or repair work done under contract and paid for in whole or in part out of public funds. For example, public transfer of an asset for less than fair market value, such as a land write-down, would be construed to be paid for in part out of public funds and trigger prevailing wage requirements.

While the cost differential in prevailing and standard wages varies based on the skill level of the occupation, prevailing wages tend to add to the overall cost of development. In the case of affordable housing projects, prevailing wage requirements could effectively reduce the number of affordable units that can be achieved with public subsidies. However, State law does allow a number of exceptions for single-family homes and for projects intended to support affordable housing, such as the construction or expansion of emergency shelters or construction of some types of affordable housing units.

2.9.2 Environmental Protection
Federal and State regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, conditional use permits, etc.). Costs resulting from the environmental review process, such as costs related to the preparation of environmental analyses, increase the cost of housing and may be passed on to the consumer. Environmental review can also impact the processing time for project review due to mandated public review periods. However, the presence of these regulations helps preserve the environment and ensure environmental safety. Recent State laws have established exemptions from CEQA for infill and affordable housing projects. Due to the City’s predominantly built-out nature, it is anticipated that the majority of proposed projects would be in-fill and likely exempt from environmental review as urban infill projects.

2.9.3 State Transparency Requirements
AB 1483 requires the City to provide on its website a current schedule of fees, exactions, and affordability requirements imposed by the City applicable to a proposed housing development project, all zoning ordinances and development standards, and annual fee reports or annual financial reports, as specified. AB 1483 also requires the City to provide on its website an archive of impact fee nexus studies, cost of service studies, or equivalent, as specified.

The information provided on the City’s website complies with AB 1483.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 26
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 27

3.0 MARKET CONSTRAINTS

3.1 AVAILABILITY OF FINANCING
The availability of financing in a community depends on a number of factors, including the type of lending institutions active in the community, lending practices, rates and fees charged, laws and regulations governing financial institutions, and equal access to those institutions.

Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. A total of 1,112 households applied for mortgage loans for homes in the seven census tracts that include residential areas in Laguna Woods in 2019 (Table I). Overall, 62 percent of these applications were approved, 15 percent were denied, and 23 percent were either withdrawn or closed for incompleteness. Conventional financing involves market-rate loans provided by private lending institutions such as banks, mortgage companies, savings and loans, and thrift institutions. Of the 453 applications for conventional purchase loans, 70 percent were approved. The approval rate for government-backed loans was slightly higher at 72 percent, while the approval rate for refinance applications was 58 percent. Home improvement loan applications had the lowest approval rating, with 37 percent of applications being approved and 44 percent being denied.

Table I: Disposition of Home Purchase and Improvement
Loan Applications (2019)
Loan Type Total Applications Approved Denied Other
Government-Backed Purchase 39 72% 8% 20%
Conventional Purchase 453 70% 10% 20%
Refinance 545 58% 16% 26%
Home Improvement 75 37% 44% 19%
Total 1,112 62% 15% 23%
Source: Federal Financial Institutions Examination Council (FFIEC) Home Mortgage Disclosure Act Data Publication. (2019).

Note: “Other” includes files closed for incompleteness and applications withdrawn. Data covers the seven census tracts that include residential areas in Laguna Woods (Census Tracts 626.22, 626.25, 626.41, 626.46, 626.47, 626.48, and 626.49).

3.2 FORECLOSURES
Foreclosure occurs when households fall behind on one or more scheduled mortgage payments. The foreclosure process can be halted if the homeowner is able to bring their mortgage payments current. If payments cannot be resumed or the debt cannot be resolved, the lender can legally use the foreclosure process to repossess (take over) the home. When this happens, the homeowners must move out of the property. If the home is worth less than the total amount owed on the mortgage loan, a deficiency judgment could be pursued. If that happens, the homeowner would lose their home and also would owe the home lender an additional amount.

Between 2000 and 2005, with low interest rates, “creative” financing (e.g., zero down, interest only, adjustable loans), and predatory lending practices (e.g., aggressive marketing, hidden fees, negative ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 28
amortization), many households purchased homes that were beyond their financial means. Under the false assumptions that refinancing to lower interest rates would always be an option and home prices would continue to rise at double-digit rates, many households were unprepared for the hikes in interest rates, expiration of short-term fixed rates, and decline in sales prices that set off in 2006.

Suddenly faced with significantly inflated mortgage payments, and “upside-down” mortgage loans (that are larger than the worth of the homes), many had to resort to foreclosing their homes.

However, since the Great Recession, foreclosure rates have come down significantly. As of June 2021, there was only one home in Laguna Woods in some stage of foreclosure. The foreclosure rate was less than 0.01 percent for Laguna Woods as well as for Orange County as a whole.5

3.3 DEVELOPMENT COSTS

3.3.1 Land Availability and Cost
The availability and price of land represents a significant market constraint to housing production throughout most of Southern California. This constraint is particularly acute in communities, such as Laguna Woods, where there is very little residentially designated vacant land. In June 2021, based on a survey of online real estate listings, there were no vacant properties listed for sale within Laguna Woods. Due to limited land availability, most new residential development in Laguna Woods will involve redeveloping properties with existing uses, which tends to add to the cost of land.

Density bonuses are available for projects that include affordable housing. Developers of affordable housing may also be granted regulatory concessions or development incentives. Density bonuses, together with the incentives and/or concessions, result in a lower average cost of land per dwelling unit thereby making the provision of affordable housing more feasible.

3.3.2 Cost of Construction
The cost of labor and building materials has a significant impact on the overall cost of new housing and can, therefore, be a constraint to affordable housing development. According to the National Association of Home Builders Construction Cost Survey, construction costs (including labor and materials) account for over 55 percent of the sales price of a new single family home. The Construction Cost Survey found that the average construction cost for a single family home in 2017 was $237,760. It should be noted that the Construction Cost Survey is a national survey and may not be completely representative of Laguna Woods or Orange County; however, it does illustrate that construction costs comprise a significant proportion of the ultimate sales price of residential development. While significant, construction costs are consistent throughout the region and therefore would not specifically constrain housing development in Laguna Woods when compared to other cities in the region.

A reduction in amenities and the quality of building materials (above a minimum acceptability for health, safety, and adequate performance) can result in lower development costs. As part of the City’s density bonus and inclusionary housing programs, the City allows affordable units to be

5 Realtytrac.com (accessed June 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 29
smaller in size (maintaining the same number of bedrooms), and could also consider allowing less costly features and interior finishes, provided all project units were comparable in construction quality and exterior design.

Another factor related to construction costs is the number of units built at one time. As that number increases, overall costs generally decrease as builders are able to take advantage of the benefits of economies of scale.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 30
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 31

4.0 INFRASTRUCTURE CONSTRAINTS
The availability of public infrastructure and services for residential development is another potential constraint to the development of housing. The majority of Laguna Woods is highly urbanized and built-out with most of the necessary infrastructure, streets, electrical lines, and water distribution already in place. This section provides an overview of potential utility service constraints.

4.1 WATER
Laguna Woods is served by the El Toro Water District (ETWD), a public water service agency. Water provided in the El Toro Water District is nearly entirely dependent on imported water. Imported water is transported via a blend of water from the Colorado River and the Sacramento Bay Delta via the State Water Project. Both sources of import water are transported from hundreds of miles through a series of tunnels, aqueducts and pipelines to reach Orange County, and are distributed by the Metropolitan Water District (MWD) of Southern California, the region’s wholesale water provider. ETWD purchases this imported water from the MWD through the Municipal Water District of Orange County. ETWD has taken a leading role in improving local water supply reliability for south Orange County. Together with the Santa Margarita Water District and the Moulton Niguel Water District, ETWD maintains and operates a large covered drinking water reservoir with a capacity of 275 million gallons. In the event of an emergency or unplanned interruption of water service, the reservoir could provide a 14-day supply of water to ETWD customers.

According to ETWD’s Draft 2020 Urban Water Management Plan (UWMP), water use within its service area was 7,167 acre-feet of potable water and 1,270 acre-feet of recycled water for landscape irrigation in 2019. A stable trend is expected because ETWD’s service area is predominantly built-out and the rate of population growth is small (about 0.23 percent per year).

Water conservation efforts also kept per capita water use down. The total service demand was expected to increase to 8,737 acre-feet by 2025 and projected to increase to 9,156 acre-feet by 2045. According to the UWMP, ETWD’s system is expected to have the ability to supply 9,156 acrefeet of water in 2045, meeting the projected demands. ETWD’s demand projections consider such factors as current and future demographics, future water use efficiency measures, and long-term weather variability, and specifically take into account the additional housing units that each of the cities within its service area must plan for as part of the RHNA requirements. Therefore, adequate water supply is available to accommodate the RHNA during the Housing Element planning period.

SB 1087 requires that water providers develop written policies that grant priority to proposed development that includes housing affordable to lower-income households. The legislation also prohibits water providers from denying or conditioning the approval of development that includes housing affordable to lower income households, unless specific written findings are made. The City will provide a copy of the adopted Housing Element to ETWD after adoption and will continue to coordinate with ETWD to ensure priority service provision to affordable housing developments.

4.2 WASTEWATER
Wastewater in Laguna Woods is collected, treated, and disposed of by ETWD’s Wastewater Treatment Plant (WTP), which has a maximum capacity of 6 million gallons per day. In addition, ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 32
ETWD operates a Water Recycling Plant (WRP), which allows it to reuse much of its wastewater effluent as recycled water by applying a tertiary treatment process. The WTP and WRP serve portions of the cities of Laguna Hills, Mission Viejo, Aliso Viejo, Lake Forest and all of Laguna Woods.

ETWD has been able to meet its water demands from a combination of water resources and technology that optimally promote use of water conservation practices, water importation and recycled water treatment and delivery. In 2012, ETWD began a Recycled Water Expansion Project to increase the treatment and delivery of recycled water through a new tertiary treatment facility. The tertiary treatment plant is designed to produce as much as 3.7 million gallons of recycled water per day with a peak hour pumping capacity of over 5,000 gallons per minute. The WRP expansion was designed with the ability to expand capacity up to the expected maximum amount of raw wastewater entering the plant. Simultaneously, ETWD built a new recycled water distribution system that includes 140,000 ft of recycled water pipelines beneath the roadways in portions of Laguna Woods and the northwest portion of Laguna Hills. Therefore, there are no constraints on the availability of wastewater disposal or treatment.

SB 1087 mandates priority sewage collection and treatment service to housing developments providing units affordable to lower-income households. The City will provide a copy of the adopted Housing Element to ETWD after adoption. The City will continue to coordinate with ETWD to ensure priority service provision to affordable housing developments.

4.3 TRANSPORTATION INFRASTRUCTURE
In 1990, Orange County voters approved Measure M, the Revised Traffic Improvement and Growth Management Ordinance, which provides funding to Orange County for needed transportation improvements over a 20-year period through the imposition of a one-half cent retail transaction and use tax. In 2006, voters extended the tax through 2041 (Measure M2). Cities such as Laguna Woods can qualify for Measure M funds if they comply with the Countywide Growth Management Program component requirements and have an established policy framework for that program. As part of complying with the Countywide Growth Management Program component requirements, Laguna Woods implemented a development mitigation program that established a fee structure for requiring new development to pay its proportionate share funding of impacts to the regional roadway system.

In order to assist with the long-term development of funding for major capital improvement projects on public property, the City Council adopts a minimum 7-year Capital Improvement Program (CIP) on an annual basis. The CIP and the minimum 7-year period to which it applies is also a requirement for receiving funding from Measure M2.

In addition, the City is within the San Joaquin Hills Transportation Corridor (SJHTC) fee assessment area. The payment of development impact fees is required as a condition of approval of a final parcel or tract map or as a condition of issuing a building permit on any properties within the fee assessment area, as authorized by Government Code Section 66484.3. These development impact fees are collected for the purpose of repaying the indebtedness incurred to construct the San Joaquin Hills Transportation Corridor (State Route 73) that has already been built, as well as to pay the cost of future anticipated improvements and ongoing planning and environmental requirements.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 33
Fees are collected on new residential dwellings and new non-residential square footage in areas identified as the area of benefit surrounding the corridor. While most of Laguna Woods is within Area of Benefit Zone A for the SJHTC, the northern portions of the City are within Area of Benefit Zone B. Table J provides a summary of the current (2021) development impact fees assessed within those areas. In 1997, the San Joaquin Hills Transportation Corridor Agency (SJHTCA) Board of Directors adopted a set rate of increase for the fees. Each July 1, rates for the SJHTCA increase by

2.667 percent.

Table J: San Joaquin Hills Transportation Corridor
Development Impact Fees (2021)
Zone A Zone B
Single Family Residential $5,893/unit $4,567/unit
Multi-Family Residential $3,432/unit $2,664/unit
Source: Transportation Corridor Agencies (2021).

Note: In 1997, the San Joaquin Hills Transportation Corridor Agency Board of Directors adopted a set rate of increase for the fees. Each July 1, rates increase by 2.667 percent.

While the traffic mitigation fees described above may present a constraint to housing development, they are necessary to facilitate the ongoing maintenance of transportation infrastructure.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B 34
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 35

5.0 ENVIRONMENTAL CONSTRAINTS
A wide range of environmental factors may constrain the development of new housing. Areas of special environmental significance, potential safety hazards, and development constraints have influenced and will continue to influence land use policy. The City’s Safety Element identifies areas subject to a number of environmental constraints, including flooding, seismic hazards, hazardous and toxic materials, and urban fires. The City’s General Plan recognizes those hazards and identifies programs to minimize them.

5.1 FLOODING
The Federal Emergency Management Agency (FEMA) publishes maps that identify areas of the City subject to flooding in the event of a major storm. Those Flood Insurance Rate Maps (FIRMs) indicate areas that may be inundated in the event of a 100-year or a 500-year storm. In addition, the maps indicate the base flood elevations at selected intervals of the floodway. The flood map contained in the City’s Safety Element indicates that very few areas are within 100-year flood event inundation areas. Areas are limited to the small reservoir southeast of the intersection of Moulton Parkway and Ridge Route Drive, the 9 Hole Par 3 Golf Course in Laguna Woods Village, and Aliso Creek in the southeastern portion of Laguna Woods. The projected 500-year flood would most significantly affect low-lying areas along Aliso Creek.

Additional flood hazards include the four reservoirs with a total maximum capacity of 10 million gallons of potable water distributed throughout Laguna Woods. Two of these reservoirs are located at a high point northwest of the intersection of El Toro Road and Moulton Parkway, and two are located in Laguna Woods Village (one at the south end of Calle Sonora Este and another on the west side of Bahia Blanca West). The dam/reservoir located southeast of the intersection of Moulton Parkway and Ridge Route Drive (Rossmoor #2) is located in a 100-year floodplain, but is not subject to State dam inundation mapping regulations. The Veeh Reservoir located nearby in the City of Laguna Hills is also within a 100-year floodplain. According to the City’s Safety Element, failure of any of the previously mentioned ETWD infrastructure could cause localized flooding.

The Moulton Niguel Water District owns and operates a water tank in the City of Aliso Viejo just south of the intersection of El Toro Road and Aliso Creek Road. Failure of that water tank could cause flooding on El Toro Road and in the lower portions of Woods End Wilderness Preserve.

The failure of the bridge along Avenida Sevilla that crosses Aliso Creek could impede movement and cause localized flooding on property in Laguna Woods Village. Flood hazards in Laguna Woods pose a moderate risk. Areas designated for future residential development will be evaluated on an individual basis regarding their potential flood hazard.

5.2 SEISMIC AND GEOLOGIC HAZARDS
As stated in the City’s Safety Element, the entirety of Laguna Woods—as well as all of Southern California—is located within a seismically active region that has been subject to major earthquakes in the past. There are no known faults in Laguna Woods. However, the Newport-Inglewood, Whittier-Elsinore, Glen Ivy Elsinore, and Temecula-Elsinore faults are located within close proximity ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B - 36
to Laguna Woods. The closest fault—Newport-Inglewood—traverses approximately 7-8 miles southwest of Laguna Woods. The San Andreas and San Jacinto faults are located much further away from Laguna Woods (the San Jacinto Fault crosses the region approximately 40 miles northeast of Laguna Woods and the San Andreas Fault is even farther away [approximately 50 miles northeast]).

Although farther away, those faults have the potential to deliver larger magnitude earthquakes than the other five faults mentioned above. Other major faults may be buried under alluvium, or fault traces may have been obliterated due to natural weathering.

Liquefaction is another hazard associated with intense ground shaking, in which the soil can destabilize and if sufficient water is present in the soil, the soil and water can mix. The City’s Safety Element includes a map that identifies liquefaction hazard zones. Most of the approximately 256 acres that are within the identified liquefaction hazard zones are in the southeastern portion of Laguna Woods; however, small areas that are subject to liquefaction hazards also exist in the northern and western part of Laguna Woods. Areas within these hazard zones may experience liquefaction during extreme ground shaking.

Landslides, which can occur as a result of seismic activity or as an independent event, have the potential to cause loss of life, personal injury, economic loss, and property damage in Laguna Woods. The City’s Safety Element includes a map that shows the locations of the approximately 77 acres that are prone to earthquake-induced landslides. Most of the areas that are subject to landslides are in the western half of Laguna Woods.

5.3 WILDFIRES
According to the City’s Safety Element, wildfires in the open space and wildland-urban interface area that borders the westernmost edge of Laguna Woods could cause loss of life, personal injury, and extensive property damage, including damage to open space resources. Consequently, fires are considered to pose a very significant risk. In 2012, the City Council designated three fire hazard severity zones (very high, high, and moderate) within the wildland-urban interface area shown in the Safety Element. The Very High Fire Hazard Severity Zone was identified by the California Department of Forestry and Fire Protection (CAL FIRE), while the High and Moderate Fire Hazard Severity Zones were identified by OCFA based on an assessment of vegetation, slope, fire history, weather patterns, and impact of flames, heat, and flying embers. Collectively, those zones and the 2,564 residential dwelling units within them face the highest risk of wildfire impacts. However, OCFA has developed a number of resources that are intended to mitigate fire risk through vegetation management, including technical guidelines for developing fuel modification plans for new construction projects and maintaining and managing vegetation on properties within fire hazard areas.

5.4 NOISE
Noise generated from mobile sources such as traffic on City streets and Interstate 5 (I-5) and aircraft flyovers will continue to have the greatest potential impact on the City’s land use decisions. The City’s Noise Element describes the existing noise environment using maps that identify several areas with high levels of noise. The Noise Element also identifies noise sources and contains goals and policies that will be useful in reducing the effects of noise, if not the actual intensity of noise. Land ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 202 2 CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 37
use policy discourages the placement of noise-sensitive land uses in areas that are subject to high noise levels. The City requires new housing developments to provide an acoustic analysis and provide necessary mitigation, such as barriers or additional sound insulation, for projects located within the 65 CNEL noise contour zones identified in the Noise Element. According to the Noise Element, areas adjacent to the following road segments are either already within the 65 CNEL noise contour or are projected to be in future General Plan build-out:
• El Toro Road (Aliso Creek Road to Paseo de Valencia)
• Moulton Parkway (Gate 12 south to City limits)
• Santa Maria Avenue (Avenida Sosiega to Santa Vittoria Drive) ITEM 7.1 - Exhibit A to Attachment A DRAFT

CONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit B - 38
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
February 2022

EXHIBIT C

HOUSING SITES INVENTORY AND ANALYSIS

CITY OF LAGUNA WOODS
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
February 2022

HOUSING SITES INVENTORY AND ANALYSIS

CITY OF LAGUNA WOODS
Submitted to:

City of Laguna Woods
24264 El Toro Road
Laguna Woods, California 92637
Prepared by:

L AGUNA WOODS , C ALIFORNIA
Exhibit C - i

1.0 INTRODUCTION................................................................................................... 1

2.0 STATE REGULATIONS........................................................................................... 2

2.1 Assembly Bill 1397................................................................................................................ 3

2.2 Assembly Bill 686.................................................................................................................. 3

3.0 OVERVIEW OF POTENTIAL HOUSING SITES .......................................................... 4

4.0 METHODOLOGY USED TO IDENTIFY SITES.......................................................... 13

5.0 ENVIRONMENTAL CONSTRAINTS AND ADEQUATE INFRASTRUCTURE ................ 16

5.1 Environmental Constraints................................................................................................. 16

5.2 Infrastructure Constraints.................................................................................................. 16

5.3 General Land Use Considerations ...................................................................................... 19

5.4 Access to Community Resources........................................................................................ 19

5.5 Energy Conservation Opportunities................................................................................... 20

5.5.1 City Efforts..........................................................................................................................21

5.5.2 Other Resources.................................................................................................................22

6.0 FAIR HOUSING ISSUES ....................................................................................... 24

6.1 Poverty Status..................................................................................................................... 24

6.2 Diversity Index .................................................................................................................... 24

6.3 Healthy Places .................................................................................................................... 29

6.4 Social Vulnerability ............................................................................................................. 29

6.5 Tax Credit Allocation Committee Opportunity Areas......................................................... 35

6.6 Regional Opportunity Index ............................................................................................... 39

6.7 Disability, Family Status, and Income................................................................................. 39

6.8 Age and INCOME Restrictions............................................................................................ 40

6.9 Concluding Analysis............................................................................................................ 40

7.0 REALISTIC DEVELOPMENT CAPACITY ................................................................. 42

8.0 QUANTIFIED OBJECTIVES ................................................................................... 45 ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - ii

FIGURES AND TABLES

FIGURES
Figure 1: Housing Sites Key Map...........................................................................................................11 Figure 2: Poverty Status........................................................................................................................25 Figure 3: Diversity Index........................................................................................................................27 Figure 4: Healthy Places Index ..............................................................................................................31 Figure 5: Social Vulnerability Index.......................................................................................................33 Figure 6: TCAC Opportunity Areas........................................................................................................37 TABLES
Table A: City of Laguna Woods Housing Needs Allocation (2021–2029) ...............................................2 Table B: Site Descriptions........................................................................................................................5 Table C: Environmental and Site Constraints........................................................................................17 Table D: Potential Overlay Zoning Districts ..........................................................................................19 Table E: Domains and Lists of Indicators for Opportunity Maps..........................................................35 Table F: Disability, Family Status, and Income......................................................................................40 Table G: Potential Housing Unit Production.........................................................................................43 Table H: Summary of Quantified Objectives.........................................................................................45 ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - iii

LIST OF ABBREVIATIONS AND ACRONYMS
AB Assembly Bill
AFFH Affirmatively Furthering Fair Housing
APN Assessor’s Parcel Number
CDC Centers for Disease Control and Prevention
CF-P Community Facilities—Private
City City of Laguna Woods
ETWD El Toro Water District
FHEO Fair Housing Enforcement and Outreach
Golden Rain Foundation Golden Rain Foundation of Laguna Woods HCD California Department of Housing and Community Development HPI Healthy Places Index
HUD United States Department of Housing and Urban Development LIHTC Low Income Housing Tax Credit
MFI median family income
OCTA Orange County Transportation Authority
PA Professional and Administrative Office
PHASC Public Health Alliance of Southern California
RHNA Regional Housing Needs Assessment
SB Senate Bill
SCAG Southern California Association of Governments
SCE Southern California Edison
SVI Social Vulnerability Index
SVUSD Saddleback Valley Unified School District
TCAC Tax Credit Allocation Committee
UWMP Urban Water Management Plan
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - iv
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 1

1.0 INTRODUCTION
State Housing Element law requires local governments to adequately plan to meet their existing and projected housing needs, including their share of the Regional Housing Needs Assessment (RHNA) allocation. Government Code Section 65583(a)(3) requires local governments to prepare an inventory of land suitable for residential development, which is used to identify sites that can be developed for housing within the planning period. This report has been prepared to satisfy Government Code Section 65583(a)(3).

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 2

2.0 STATE REGULATIONS
State law recognizes the vital role local governments play in the availability, adequacy, and affordability of housing. Every city and county in California is required to adopt a long-range General Plan to guide its physical development; the Housing Element is one of the seven mandated elements of the General Plan. State Housing Element law mandates that local governments adequately plan to meet the existing and projected housing needs of all economic segments of the community. The law recognizes that in order for the private market to adequately address housing needs and demand, local governments must adopt land use plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing production. Housing Element statutes also require the California Department of Housing and Community Development (HCD) to review local housing elements for compliance with state law and to report its findings to the local government.

State Housing Element law requires that each local government develop local housing programs to meet its “fair share” of existing and future housing needs for all income groups. The Southern California Association of Governments (SCAG) is responsible for developing and assigning these regional needs, via the RHNA process, to Southern California jurisdictions including the City.

Government Code Section 65583(a)(3) requires that local governments prepare an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to those sites. This parcel-level inventory of sites with near-term residential development potential has been prepared in support of the City’s efforts to update its Housing Element.

The City’s fair share for the planning period between October 2021 and October 2029 was established by SCAG at 997 units divided into four income groups as shown in Table A. That housing needs allocation was based on projected household growth and the resulting need for construction of additional housing units allocated over an 8-year planning period (2021–2029).

Table A: City of Laguna Woods Housing Needs Allocation (2021–2029) Income Level Percent of Area MFI No. of Units
Very Low 0–50% 127
Low 51–80% 136
Moderate 81–120% 192
Above Moderate >120% 542
Total 997
Source: SCAG 6th Cycle Final RHNA Allocation Plan (approved by HCD on March 22, 2021).

HCD = California Department of Housing and Community Development MFI = median family income
RHNA = Regional Housing Needs Assessment
SCAG = Southern California Association of Governments
It should be noted that the City’s housing needs allocation for the 2021–2019 planning period (997 units) is substantially higher than its allocation during the previous planning period (2 units).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 3

2.1 ASSEMBLY BILL 1397
Pursuant to Assembly Bill (AB) 1397, cities must determine if more than 50 percent of the lowerincome RHNA would be accommodated on nonvacant sites. When a city relies on nonvacant sites to accommodate 50 percent or more of its housing need for lower-income households, the methodology used to determine additional development potential must demonstrate that the existing use identified does not constitute an impediment to additional residential development during the period covered by the Housing Element. An existing use is presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period (Government Code Section 65583.2(g)(2)).

2.2 ASSEMBLY BILL 686
Pursuant to AB 686, for Housing Elements due on or after January 1, 2021, sites must be identified throughout the community in a manner that affirmatively furthers fair housing opportunities (Government Code Section 65583(c)(10)). According to Government Code Section 8899.50(a)(1), affirmatively furthering fair housing means “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity; replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws. For purposes of this Housing Sites Inventory and Analysis, this means that the sites identified to accommodate the lower-income need must not be concentrated in low-resourced areas (areas that lack access to high-performing schools, are not close to jobs, and/or are disproportionately exposed to pollution or other health impacts) or areas of segregation and concentrations of poverty. Instead, the sites identified to accommodate the lower-income need must be distributed throughout the community in a manner that affirmatively furthers fair housing.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 4

3.0 OVERVIEW OF POTENTIAL HOUSING SITES
The City has identified 17 potential sites that appear to be viable for near-term housing development that would help the City meet its RHNA requirements. Table B provides a brief description of each site and its corresponding Assessor’s Parcel Numbers (APNs), along with a description of the existing uses on each site, the surrounding land uses, the parcel size, and the existing General Plan land use and zoning designations on each site. The 17 sites are distributed throughout the community as shown in Figure 1, Housing Sites Key Map.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 5
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
1 Town Centre Vacant
Lot
(APN 616-012-29)
• Undeveloped.
• Site slopes downward from
north to south, with most of
the developable area on this
parcel being 30 to 50 feet
above El Toro Road.

North: El Toro Water District
facility—water well property
(one-story structures and water
tanks)
Yes 1.8 ac Commercial Community
Commercial
East: Laguna Hills Animal Hospital
and Laguna Woods Self Storage
(one- and two-story structures)
South: Laguna Woods Village
water detention basin—vacant
property
West: Medical office building
within Town Centre (three-story
structure)
2 Pacific Hills Calvary
Chapel Parking Lot
(APN 621-131-38)
Currently developed as a surface
parking lot for the adjacent
Pacific Hills Calvary Chapel in
neighboring Aliso Viejo.

North: vacant land, Laguna
Country United Methodist Church
(one-story structures)
No 0.696 ac Commercial Professional &
Administrative
Office
East: Laguna Country United
Methodist Church, Pacific Hills
Calvary Chapel (in Aliso Viejo) (all
one-story structures)
South: vacant land, Pacific Hills
Calvary Chapel (in Aliso Viejo) (all
one-story structures)
West: vacant land
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 6
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
3 Rossmoor Electric
(APN 621-131-21)
Currently developed as a
commercial use with a small
number of office and storage
uses.

North: grocery and commercial
(one- and two-story structures)
No 1.232 ac Commercial Community
Commercial
East: Saddleback Golf Cars (onestory structures)
South: Laguna Woods Village
community garden center
West: Equestrian Center (oneand two-story structures)
4 Saddleback Golf Cars
(APN 621-131-26)
Currently developed as a
commercial use with
neighborhood electric vehicle
and golf cart sales and repair.

North: grocery and commercial
(one- and two-story structures)
No 1.235 ac Commercial Community
Commercial
East: vacant land
South: vacant land
West: Rossmoor Electric (onestory structures)
5 Laguna Woods Self
Storage (APN 616-
012-19)
Currently developed as a
commercial use with
approximately eight single story
structures used for individual
storage.

North: Laguna Woods Village golf
course
No 5.249 ac Commercial Community
Commercial
East: Animal Hospital and
commercial center (one-and-twostory structures)
South: water storage
West: City Center Park
6 Animal Hospital
(APN 616-012-03)
Currently developed as a
commercial use with an animal
hospital.

North: Laguna Woods Self
Storage (one-story structures)
No 0.76 ac Commercial Community
Commercial
East: gas station (one-and-twostory structures)
South: Equestrian Center (oneand two-story structures) West: vacant land
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 7
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
7 PS Business Park
(excludes Jack in the
Box) (APN 616-021-
30)
Currently developed as a
commercial use with a selfstorage facility and small
shopping center.

North: open space (in Lake
Forest)
No 2.867 ac Commercial Community
Commercial
East: Laguna Woods Village golf
course
South: Laguna Woods Village golf
course
West: fast-food restaurant (onestory structure)
8 Smart Parke (APN
621-211-09)
Currently developed as a
commercial use with a pet
boarding facility.

North: grocery and commercial
(one-and-two story structures)
No 2.373 ac Commercial Community
Commercial
East: Home Depot center (oneand two-story structures)
South: Laguna Woods Village golf
course
West: The Regency Apartment
Homes (one-to-three-story
structures)
9 McCormick & Son
Mortuary (APN 621-
091-016)
Currently developed as a
commercial use with a mortuary
facility.

North: medical offices (threestory structures)No 1.411 ac Commercial Community Commercial
East: single family residences
(one- and two-story structures)
South: residential (four-story
structures)
West: multifamily residential (in
Aliso Viejo) (four-story structures)
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 8
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
10 Lutheran Church of
the Cross (APN 616-
041-01)
Currently developed as a church. North: Laguna Woods Village residences (three-story
structures)
No 3.028 ac Community
Facilities
Community
Facilities—
Private
East: Laguna Woods Village
residences (one- and two-story
structures)
South: Saint Nicholas Catholic
Church (one- and two-story
structures)
West: Laguna Woods Village Golf
Course
11 Geneva Presbyterian
Church (APNs 616-
191-05 & 616-191-
06)
Both parcels are currently
developed as a church.

North: Laguna Woods Village
residences (one-story structures)
No 3.955 ac1 Community
Facilities (both
parcels)
Community
Facilities—
Private (both
parcels)
East: Calle Sonora/office building
within Town Centre (three-story
structure)
South: Whispering Fountains
Apartments and residences (in
Aliso Viejo) (one-, two-, and
three-story structures)
West: Laguna Woods Village
residences (one-story structures)
12 Saint Nicholas
Catholic Church (APN
621-121-11)
Currently developed as a church. North: Lutheran Church of the Cross (one- and two-story
structures)
No 4.596 ac Community
Facilities
Community
Facilities—
Private
East: Laguna Woods Village
residences (one- and two-story
structures)
South: Laguna Woods Village
residences (one-story structures)
West: Willow Tree Center and
Laguna Woods Village residences
(one- and two-story structures)
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 9
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
13 Temple Judea
(APN 621-121-18)
Currently developed as a temple. North: Laguna Country United Methodist Church and Laguna
Woods Village residences (onestory structures)
No 1.757 ac Community
Facilities
Community
Facilities—
Private
East: Laguna Woods Village
residences (one-story structures)
South: Laguna Woods Village
residences and various churches
(in Aliso Viejo) (one-story
structures)
West: Laguna Country United
Methodist Church and various
churches (in Aliso Viejo) (onestory structures)
14 Laguna Country
United Methodist
Church
(APN 621-121-23)
Currently developed as a church. North: Willow Tree Center and Laguna Woods Village residences
(one-story structures)
No 3.899 ac Community
Facilities
Community
Facilities—
Private
East: Temple Judea and Laguna
Woods Village residences (onestory structures)
South: Temple Judea and various
churches (in Aliso Viejo) (onestory structures)
West: parking lot for Pacific Hills
Calvary Chapel, Laguna Woods
Village vacant land, Willow Tree
Center, Laguna Woods Village
residences (one-story structures
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 10
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
15 Medical Building in
Town Centre
(APN 616-012-24)
Currently developed as a
commercial use with office uses.

North: Town Center (three-story
structure)
No 2.69 ac Commercial Professional &
Administrative
East: vacant land Office
South: Home Depot shopping
center and Laguna Woods Village
water detention basin (one-story
structures)
West: Town Centre (one- and
three-story structures)
16 Willow Tree Center
East
(APN 621-121-30)
Currently developed as a
commercial use with retail, a
restaurant, and an adult day
services facility.

North: Laguna Woods Village Golf
Course
No 3.095 ac Commercial Community
Commercial
East: medical buildings (four-story
structures)
South: Residential Community
(one- and two-story structures)
West: Community Commercial
(Town Centre) (one- and twostory structures)
17 Helm Center
(APN 621-091-15)
Currently developed as a
commercial use with office uses.

North: Laguna Woods Village
residences (one- and two-story
structures)
No 0.65 ac Commercial Professional &
Administrative
Office
East: Laguna Woods Village
residences (one- and two-story
structures)
South: McCormick & Son
Mortuary (one-story structures)
West: The Wellington (in Aliso
Viejo) (four-story structures)
1 APN 616-191-05 is 0.5 acre and APN 616-191-06 is 3.455 acres. The total acreage of both parcels is 3.955. ac = acre(s)
APN = Assessor’s Parcel Number
County = County of Orange
ITEM 7.1 - Exhibit A to Attachment A DRAFT
Service Layer Credits:
") ")
")
") ")
")
") ")
")
")
")
")
")
") ")
")
")

LAGUNA HILLS DR
M
O
ULTO
N
P
KWY

EL TORO RD

EL TORO RD
M
O

ULTON PKWY

RIDGE ROUTE DR

SANTA MARIA AV

MOULTON PKWY
§¨¦5

AVENIDA SEVILLA

AVENIDA MAJORCA

VIA PUERTA

AVENIDA SOSIEGA

ALISO CREEK RD

GLENWOOD DR

ROCKFIELD BLVD

MUIRLANDS BLVD

VIA CARRIZO

CALLE ARAGON

LOS ALISOS BLVD

EL TORO RD
11 1
10 2 13
14 12
16 3
5 6
7 9
4 8
15 17
SOURCE: Google Maps (2020)
I:\LWD2101\GIS\MXD\Key_Map.mxd (10/27/2021)
FIGURE 1
City of Laguna Woods
2021-2029 Housing Element Update
Housing Sites Key Map
LEGEND
") Housing Site (with Site ID#)
City of Laguna Woods
Laguna Woods Village
0 1000 2000
FEET
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 12
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 13

4.0 METHODOLOGY USED TO IDENTIFY SITES
Given the predominantly built-out nature of Laguna Woods, there is very little undeveloped land that is able to accommodate new development. The majority of Laguna Woods is comprised of private communities that are restricted to adults aged 55 and older. Most of the limited amount of vacant land that exists within Laguna Woods consists of publicly owned open space properties that are subject to conservation easements or deed restrictions that prohibit housing development.

Properties presently designated as open space were excluded from consideration when the presence of deed restrictions preclude potential future housing development. The Laguna Laurel property at the western end of Santa Maria Avenue is subject to a conservation easement that expressly prohibits the construction of housing. Woods End Wilderness Preserve is subject to a deed restriction that prohibits use inconsistent with “nonvehicular public access into the Laguna Coast Wilderness Park and natural resource protection and restoration.” Woods End Wilderness Preserve is also leased to the County of Orange for inclusion in the Laguna Coast Wilderness Park through February 28, 2047.

City-owned sites were screened for potential inclusion in this analysis; however, due to the City’s extremely limited property ownership, none were included. The City Hall/Public Library site was excluded due to the impending construction of a new library building and expanded outdoor gathering and activity spaces. Both the City Centre Park and Woods End Wilderness Preserve sites are subject to state grant-related deed restrictions. The property at Santa Vittoria Drive/San Remo Drive is 0.32 acre, which is presumed inadequate to accommodate lower income housing per HCD.

Approximately 2.7 square miles of Laguna Woods’ overall 3.3 square miles is occupied by Laguna Woods Village (formerly known as Leisure World), a private gated community for people aged 55 and older. Figure 1, Housing Sites Key Map, shows the portions of Laguna Woods that are within Laguna Woods Village. Over 15,000 residents live in the 12,736 units within Laguna Woods Village, which include condominiums, cooperatives (“co-ops”), and single-family homes. While there are several properties that are perceived as vacant within Laguna Woods Village, none of those properties meet HCD’s definition of a vacant property as set forth in the “Housing Element Site Inventory Guidebook Government Code Section 65583.2” published June 10, 2020, and the production of new housing within Laguna Woods Village faces several challenges. There are income requirements and age restrictions for residents to become members of and live within the community, and the ability to build housing on, or unilaterally sell/lease, any land held in trust by the Golden Rain Foundation for the benefit of the residents of Laguna Woods Village is restricted by applicable governing documents. Each of the perceived vacant sites within Laguna Woods Village was also redesignated/rezoned in 2015 as open space at the request of the property owner (Golden Rain Foundation); prior to that action, those sites were designated/zoned for residential and commercial use. The City has discussed its new housing needs allocation and the Housing Element update process with Laguna Woods Village management staff (Village Management Services, Inc.) and has received no indication that the Golden Rain Foundation or any other Laguna Woods Village governing board is interested in pursuing new housing development. Due to a lack of evidence indicating a likelihood of redevelopment, properties located within, or owned by parties exclusively affiliated with Laguna Woods Village, were excluded from consideration.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 14
Sites were included in this analysis because they met one or more of the following criteria:
• Sites where interest in housing development has been previously expressed were included. In 2014, the property owner’s agent expressed interest in redeveloping the Willow Tree Center East property (Site 16). In 2017, the property owner and a housing developer expressed interest in the Laguna Country United Methodist Church property (Site 14). • Based, in part, on previous interest in the Laguna Country United Methodist Church site (Site 14), parcel sizes, proximity to public transit, mission compatibility1 , and membership-related
trends, other sites presently used as places of worship were included. • Based, in part, on previous interest in the Willow Tree Center East site, parcel sizes, and proximity to public transit, other commercial sites were included. An emphasis was placed on identifying commercial sites with:
○ Frequent or long-term vacancies
■ As evidenced by real estate marketing.
■ Indicates that demand for commercial uses at that location is low, signaling a potential for redevelopment.
○ Less established tenants
■ According to the United States Bureau of Labor Statistics, approximately 20 percent of small businesses fail in the first year, 50 percent fail by the end of the fifth year, and 66 percent fail by the end of the tenth year.2
■ Indicates that the property may become available during the RHNA cycle. ○ Single tenants
■ Redeveloping such properties has fewer lease implications. ○ Viable adjacent sites
■ Presents an opportunity for lot consolidation, potentially making redevelopment at an economic scale more viable.

The list of nonvacant properties that met the criteria described above were further screened to exclude any properties that host businesses that provide essential goods or services to the community and are, therefore, not likely to vacate their current locations. Such businesses included grocery stores, banks, and pharmacies.

1 California State Senator Scott Wiener. 2020. "Senator Wiener Introduces Housing Legislation to Allow Churches and Other Charitable Institutions to Build Affordable Housing on Their Property." Website:
https://sd11.senate.ca.gov/news/20200306-senator-wiener-introduces-housing-legislation-allowchurches-and-other-charitable#:~:text=Churches%20and%20other%20religious%20and,in%20order% 20to%20do%20so.%E2%80%9D (accessed July 11, 2021). 2
United States Bureau of Labor Statistics. 2020. Survival of private sector establishments by opening year.

March. Website: https://www.bls.gov/bdm/us_age_naics_00_table7.txt (accessed July 1, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 15
The properties upon which Home Depot is located were also removed from further consideration, consistent with HCD’s “Housing Element Site Inventory Guidebook Government Code Section 65583.2” published June 10, 2020 that references an “active Home Depot” as an example of an existing use that is “unlikely to be available for residential development within the planning period.” The analysis in this report focuses on the suitability of housing development on each site by examining site conditions and various development constraints (e.g., environmental hazards or inadequate infrastructure). The report also identifies those sites that are most likely to redevelop at density levels that can facilitate affordable housing. The goal of this analysis is to confirm that the 17 potential housing sites are able to accommodate the City’s housing needs allocation.

This analysis also takes into consideration whether each site is vacant or nonvacant, as defined by HCD, and whether existing uses on the nonvacant sites would serve as an impediment to additional housing development during the Housing Element planning period.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 16

5.0 ENVIRONMENTAL CONSTRAINTS AND ADEQUATE INFRASTRUCTURE Government Code Section 65583.2(b)(4) requires that the City provide a general description of any environmental constraints to the development of housing within its jurisdiction. Government Code Section 65583.2(b)(5) requires that the City provide a description of existing or planned water, sewer, and other dry utilities supply, including the availability and access to distribution facilities.

5.1 ENVIRONMENTAL CONSTRAINTS
Table C summarizes any environmental site constraints that affect each of the 17 housing sites, with an emphasis on grading, slope hazards, access issues, and surrounding uses. As described in Table C, it appears that vehicular access to each of the 17 housing sites is viable. Table C also indicates that many of the sites have no environmental constraints. With respect to the sites with potential environmental constraints, there are feasible engineering and design solutions that are likely to reduce the environmental impacts associated with these constraints to less than significant levels.

Although the total development capacity of several of the sites (Sites 8, 11, 12, 13, 14, 16, and 17) would be constrained by slope hazards or the need to be sensitive to neighboring residents, none of the sites have physical impediments that would render them undevelopable.

5.2 INFRASTRUCTURE CONSTRAINTS
Laguna Woods is a predominantly built-out urban community that has adequate infrastructure to provide water, sewer, electricity, natural gas, and telecommunications services to its residents. As shown in Figure 1, all 17 of the potential housing sites are adjacent to either El Toro Road or Moulton Parkway and are either already developed or surrounded by existing development.

Water service is provided to Laguna Woods, including to the existing uses on each of the nonvacant sites (Sites 2–17) and the existing commercial land uses adjacent to the vacant site (Site 1), by the El Toro Water District (ETWD). The existing water mains along El Toro Road and Moulton Parkway could sufficiently support housing development on all of the sites. As an urban water supplier, ETWD is required to prepare an Urban Water Management Plan (UWMP) every 5 years. The UWMP supports ETWD’s long-term resource planning to ensure that adequate water supplies are available to meet existing and future water needs. ETWD is currently in the process of preparing an update to its UWMP, which is anticipated to evaluate the reliability of its water supplies through at least 2040.

The City will work with ETWD to ensure that planned land uses, including future housing envisioned under the City’s RHNA allocation, are included in future UWMPs so that sufficient water supplies are available. A related program has been included in the Housing Element.

Sewer service is provided to Laguna Woods by ETWD. Because sewer service is currently provided to the existing uses on each of the nonvacant sites (Sites 2–17) and the existing commercial land uses adjacent to the vacant site (Site 1), the existing sewer facilities could sufficiently support housing development on all of the sites.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 17
Table C: Environmental and Site Constraints
Site Name Description of Constraint
1 Town Centre Vacant Lot • Site slopes downward from north to south toward El Toro Road. • Heavy grading, with a substantial amount of soil export, would be required to accommodate new housing on this site; in addition, it is likely that tiebacks and/or retaining walls would be required to stabilize the site. • Vehicle access through the Town Centre project to the west appears viable. • A small portion of the site is located in a landslide hazard zone. Inclusion in such a zone does not preclude housing development.
2 Pacific Hills Calvary
Chapel Parking Lot
• Site is relatively flat and appears to drain toward the northeast. • Vehicle access to Moulton Parkway appears viable via the existing driveway on the adjacent property.
• No environmental constraints affect this site.
3 Rossmoor Electric • Site is relatively flat and appears to drain toward the east. • Vehicle access to Moulton Parkway appears viable via the existing driveway. • No environmental constraints affect this site.
4 Saddleback Golf Cars • Site is relatively flat and appears to drain toward the east. • Vehicle access to Moulton Parkway appears viable via the existing driveway. • No environmental constraints affect this site.
5 Laguna Woods Self
Storage
• Site is sloped to the northeast and south; site appears to drain toward the southeast.
• Vehicle access to Moulton Parkway appears viable via the existing driveway. • A small portion of the site is located in a landslide hazard zone. Inclusion in such a zone does not preclude housing development.
6 Animal Hospital • Site is relatively flat and appears to drain toward the south. • Vehicle access to El Toro Road appears viable via the existing driveway. • No environmental constraints affect this site.
7 PS Business Park
(excludes Jack in the
Box)
• Site is relatively flat and appears to drain toward the north. • Vehicle access to Moulton Parkway appears viable via the existing driveway. • No environmental constraints affect this site.
8 Smart Parke • Site is relatively flat and appears to drain toward the south. • Vehicle access to El Toro Road appears viable via the existing driveway. • A portion of the site is located in a landslide hazard zone. Inclusion in such a zone does not preclude housing development.
• The western portion of the site was affected by a landslide in 2004 when the slope below Calle Sonora failed due to excessive soil saturation, causing significant private property damage.
9 McCormick & Son
Mortuary
• Site is relatively flat and appears to drain toward the north. • Vehicle access to Moulton Parkway appears viable via the existing driveway. • No environmental constraints affect this site.
10 Lutheran Church of the
Cross
• Site is relatively flat and appears to drain toward the southeast. • Vehicle access to El Toro Road appears viable via the existing driveways on the site.
• No environmental constraints affect this site.
11 Geneva Presbyterian
Church
• Site is relatively flat and appears to drain toward the southeast. • The northern and western portions of the site are adjacent to residential uses; therefore, any housing development on those portions of the site will need to be sensitive to neighboring residents.
• Vehicle access to El Toro Road and Calle Sonora appears viable via the existing driveways on the site.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 18
Table C: Environmental and Site Constraints
Site Name Description of Constraint
12 Saint Nicholas Catholic
Church
• Site is relatively flat and appears to drain toward the northwest. • The southern portion of the site is adjacent to residential uses; therefore, any housing development on that portion of the site will need to be sensitive to neighboring residents.
• Vehicle access to El Toro Road appears viable via the existing driveways on the site.
13 Temple Judea • Site is relatively flat and appears to drain toward the northeast. • The northern and eastern portions of the site are adjacent to residential uses; therefore, any housing development on those portions of the site will need to be sensitive to neighboring residents.
• Vehicle access to Moulton Parkway appears viable via the existing driveway on the site, which is shared with the owner of an adjacent site. 14 Laguna Country United
Methodist Church
• Site is relatively flat and appears to drain toward the northeast. • The northern and eastern portions of the site are adjacent to residential uses; therefore, any housing development on those portions of the site will need to be sensitive to neighboring residents.
• Vehicle access to Moulton Parkway appears viable via the existing driveway on the site, which is shared with the owner of an adjacent site. 15 Medical Building in
Town Centre
• Site is relatively flat and appears to drain toward the southeast. • Vehicle access to El Toro Road appears viable via the existing driveway west of the site.
• No environmental constraints affect this site.
16 Willow Tree Center East • Site is relatively flat and appears to drain toward the southeast. • Vehicle access to El Toro Road appears viable via the existing driveway west of the site.
• The southern portion of the site is near residential communities; therefore, any housing development on that portion of the site will need to be sensitive to neighboring residents.
17 Helm Center • Site is relatively flat and appears to drain toward the southeast. • The eastern portion of the site is adjacent to residential uses; therefore, any housing development on that portion of the site will need to be sensitive to neighboring residents.
• Vehicle access to Moulton Parkway appears viable via the existing driveways on the site.

Southern California Edison (SCE) provides electrical service to Laguna Woods. Because electrical service is currently provided to the existing uses on each of the nonvacant sites (Sites 2–17) and the existing commercial land uses adjacent to the vacant site (Site 1), the existing electrical facilities could sufficiently support housing development on all of the sites.

The Southern California Gas Company provides natural gas service to Laguna Woods and each of the nonvacant sites (Sites 2–17) via existing gas mains in Ridge Route Drive, Moulton Parkway, and El Toro Road. Gas lines could be extended from El Toro Road into the vacant site (Site 1) to sufficiently support housing development.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 19
Telecommunication services including landline and cell phone service, television, and internet are available throughout Laguna Woods. These services could be provided to all of the sites to sufficiently support housing development.

5.3 GENERAL LAND USE CONSIDERATIONS
The City will include a rezoning program in its Housing Element to apply an appropriate residential overlay zoning district to each of the 17 potential housing sites. Such overlay zoning districts would allow new housing units to be developed on the nonvacant sites while also allowing the existing uses to continue operating. City staff has identified four potential overlay zoning districts, which are described in Table D below. A full General Plan consistency review will be completed when the City implements the Housing Element rezoning program; however, a subsequent update of the General Plan Land Use Element will be required to establish the new overlay zoning districts. To remain consistent with the General Plan Circulation Element, a traffic impact analysis will be required.

Table D: Potential Overlay Zoning Districts
Overlay Zone Density Range Notes
Residential High Density 30–50 du/ac  Able to accommodate the development of lowerincome units, consistent with HCD’s standard threshold
Residential Medium Density 20–30 du/ac  Able to accommodate the development of moderate-income units
Residential Medium-Low Density 15–20 du/ac  Appropriate for sites adjacent to existing lowerdensity residential uses  Able to accommodate the development of
moderate-income units
Residential Low Density 8–10 du/ac  Appropriate for sites adjacent to existing single-story residential uses
 Able to accommodate the development of
moderate-income units
du/ac = dwelling unit(s) per acre
HCD = Department of Housing and Community Development

5.4 ACCESS TO COMMUNITY RESOURCES
Although locations vary, in general, each of the 17 potential housing sites appears to enjoy good access to community resources based on the following factors:
• Good access to grocery stores and other retail outlets (e.g., ALDI Food Market, Mother’s Market & Kitchen, and Stater Bros.), which may also serve as employment centers • Good transit access (each site is within a 0.25-mile walk of an Orange County Transportation Authority [OCTA] bus stop.)
• Close to employment centers (e.g., Laguna Hills Mall and shopping centers) • Close to a medical facility (Saddleback Medical Center) ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 20
• Good access to quality schools (Based on the Saddleback Valley Unified School District [SVUSD] School Locator map, each of the sites would be assigned to the following schools, which are described below.)
○ San Joaquin Elementary School (Kindergarten–Grade 6) has the following:
1 ■ A 70.3 percent enrollment rate comprising socioeconomically disadvantaged students ■ An overall “Exemplary” rating of the school’s state of repair ■ A full cohort of administrative and teaching staff members, which provides adequate student-teacher ratios
○ Los Alisos Intermediate School (Grades 7 and 8) has the following :2 ■ A 57 percent enrollment rate comprising socioeconomically disadvantaged students ■ An overall “Good” rating of the school’s state of repair ■ A full cohort of administrative and teaching staff members, which provides adequate student-teacher ratios
○ Laguna Hills High School (Grades 9–12) has the following :3 ■ A 38.9 percent enrollment rate comprising socioeconomically disadvantaged students ■ An overall “Exemplary” rating of the school’s state of repair A full cohort of administrative and teaching staff members, which provides adequate student-teacher ratios
• SVUSD’s website states that families may request interdistrict transfers based on changes in childcare needs (Kindergarten–Grade 6 only), parent employment, and student enrollment in specialized programs. Proper documentation must be provided to SVUSD in order for an interdistrict transfer to be considered.

5.5 ENERGY CONSERVATION OPPORTUNITIES
Planning to maximize energy efficiency and the incorporation of energy conservation and green building features can contribute to reduced housing costs for residents in Laguna Woods, in addition to promoting sustainable community design and reduced dependence on vehicles. Such planning and development standards can also significantly contribute to reducing greenhouse gases. The City’s Municipal Code references recently adopted regulations that are intended to conserve energy and provide opportunities for residents to live in decent, safe, and affordable housing.

1 Saddleback Valley Unified School District. 2020. San Joaquin Elementary School 2019–20 School Accountability Report Card. Website: https://www.doc-tracking.com/screenshots/Serve/844/2020/ English/SanJoaquinElementarySchool.pdf (accessed July 1, 2021). 2 Saddleback Valley Unified School District. 2020. Los Alisos Intermediate School 2019–20 School Accountability Report Card. Website: https://www.doc-tracking.com/screenshots/Serve/844/2020/ English/LosAlisosIntermediateSchool.pdf (accessed July 1, 2021). 3 Saddleback Valley Unified School District. 2020. Laguna Hills High School 2019–20 School Accountability Report Card. Website: https://www.doc-tracking.com/screenshots/Serve/844/2020/English/LagunaHills HighSchool.pdf (accessed July 1, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 21
Existing efforts to promote energy conservation were identified and reviewed to determine whether feasible and economical opportunities exist for the City to add or enhance efforts.

5.5.1 City Efforts

5.5.1.1 Laguna Woods Municipal Code
California Green Building Standards Code. The California Green Building Standards Code, 2019 Edition (California Code of Regulations, Title 24, Part 11; CALGreen),1 was adopted and incorporated by reference as the City’s Green Building Standards Code. CALGreen regulates the planning, design, operation, construction, use, and occupancy of every newly constructed building or structure, unless otherwise indicated.

The scope of CALGreen extends to include all new buildings, this includes newly constructed residential structures, including apartment buildings, condominiums, one and two-story dwellings, homeless shelters, and other types of dwellings containing sleeping accommodations; therefore, it applies to affordable housing units.

California Energy Code. The California Energy Code, 2019 Edition (California Code of Regulations, Title 24, Part 6),2 was adopted and incorporated by reference as the City’s Energy Code. The Energy Code regulates the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, maintenance, removal, and demolition of every building or structure or any appurtenances connected or attached to such buildings or structures.

The Energy Code promotes efficient building energy use to protect people and the environment.

Once rooftop solar electricity generation is factored in, homes built under the 2019 standards will use about 53 percent less energy than those under the 2016 standards. This is expected to reduce greenhouse gas emissions in California by 700,000 metric tons over three years, equivalent to taking 115,000 fossil fuel cars off the road.3
Construction and Demolition Materials Management. Chapter 4.24, Construction and Demolition Materials Management, of the City’s Municipal Code increases the amount of construction and demolition waste diverted from landfills by requiring minimum levels of reuse or recycling of waste generated by certain types of projects.

Water Efficient Landscapes. Chapter 10.03, Water Efficient Landscapes, of the City’s Municipal Code encourages efficient and conservation-oriented use of water in new and rehabilitated landscapes by limiting the amount of water able to be applied and requiring compliance with El Toro Water District regulations.

1 City of Laguna Woods. Municipal Code. Website: https://library.municode.com/ca/laguna_woods/codes/ code_of_ordinances?nodeId=TIT10BUCO_CH10.24CAGRBUSTCO (accessed September 16, 2021). 2 City of Laguna Woods. Municipal Code. Website: https://library.municode.com/ca/laguna_woods/codes/ code_of_ordinances?nodeId=TIT10BUCO_CH10.28CAENCO (accessed September 16, 2021). 3 2019 Building Energy Efficiency Standards FAQs. The California Energy Commission - Efficiency Division.

Website: https://www.energy.ca.gov/sites/default/files/2020-03/Title_24_2019_Building_Standards_FAQ _ada.pdf (accessed September 17, 2021).

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 22
In considering opportunities to promote energy conservation, the City’s role in administering the California Building Standards Code positions it well to incentivize improvements that exceed the minimum requirements set forth in the California Green Building Standards Code and California Energy Code (collectively referred to as the California Building Energy Efficiency Standards). A related program has been included in the Housing Element.

5.5.1.2 City of Laguna Woods General Plan Conservation Element The General Plan Conservation Element addresses emergent issues and existing conditions in order to form a comprehensive approach to resource conservation. This element presents existing conditions relative to natural resource conservation within Laguna Woods and is organized to address the following eight priority issues: air resources; biological resources; cultural resources; energy resources; land resources; water resources; greenhouse gas emissions; and waste and recycling.

Implementation actions associated with the following General Plan Conservation Element policy objectives would provide opportunities for energy conservation in residential development:
• CO-4.1. Maintain energy reliability and affordability through conservation, efficiency, and independence.
• CO-4.2. Demonstrate sustainable energy resource leadership. • CO-6.2. Maintain water reliability and affordability through conservation, efficiency, and independence.
• CO-6.3. Demonstrate sustainable water resource leadership. • CO-8.1. Control sources of greenhouse gas emissions.
• CO-8.2. Demonstrate climate change leadership.
• CO-9.1. Adopt and enforce regulations promoting waste and recycling goals. • CO-9.2. Expand opportunities for recycling and reuse of waste.

5.5.2 Other Resources

5.5.2.1 Southern California Edison Programs
For households requiring assistance with the payment of routine energy bills, Southern California Edison offers the following programs:
• California Alternate Rates for Energy (CARE) reduces energy bills for eligible customers by about 30 percent.
• Family Electric Rate Assistance (FERA) reduces electric bills for qualified households by 18 percent.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 23

5.5.2.2 Foundation of Laguna Woods Village Payment Assistance The Foundation of Laguna Woods Village is a nonprofit corporation that raises and distributes monies to assist residents of the private gated community of Laguna Woods Village. The Foundation of Laguna Woods Village offers temporary financial assistance with the payment of utility and energy bills.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 24

6.0 FAIR HOUSING ISSUES
HCD updated its guidance for implementing Affirmatively Furthering Fair Housing (AFFH) in April 2021. The updated guidance was published to assist public agencies and local governments with meeting their AB 686 requirements. In April 2021, HCD also released an interactive AFFH Data Viewer, which provides several map layers with data related to key AFFH factors including the following: Fair Housing Enforcement Outreach Capacity, Community Segregation and Integration, Disparities in Access to Opportunities, Disproportionate Housing Needs & Displacement Risks, and Racially and Ethnically Concentrated Areas of Poverty and Affluence. Per HCD’s AFFH implementation guidance, the 17 potential housing sites were analyzed for any potential patterns and trends of disparate housing needs and disproportionate access to opportunities. Using those criteria, housing sites were then evaluated on several map layers available from the AFFH Data Viewer to confirm that they would comply with AFFH policy. Figures 2 through 6, which are described in further detail below, show the locations of the potential housing sites and their proximity to the different classifications provided in the AFFH Data Viewer.

6.1 POVERTY STATUS
Figure 2, Poverty Status, identifies the percentage of the population in each Laguna Woods census tract whose income in the past 12 months was below the poverty level, based on the 2015–2019 American Community Survey estimates. Figure 2 also identifies the locations of the 17 potential housing sites. As shown in Figure 2, between 10 and 20 percent of the population in the portions of Laguna Woods east of Moulton Parkway and west of Moulton Parkway between El Toro Road and Santa Maria Avenue are living below the poverty level.

Of the 17 sites, four (Sites 2, 3, 4, and 8) are located in areas of Laguna Woods in which less than 10 percent of the population’s income is below the poverty level, and 13 (Sites 1, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, and 17) are located in areas in which between 10 and 20 percent of the population’s income is below the poverty level.

While no areas in Laguna Woods are within a census tract in which a majority of the population’s income is below the poverty level, this analysis suggests that the development of new affordable housing on Sites 1, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, and 17 would be more desirable in order to affirmatively further fair housing. This is due to their slightly higher percentages of poverty levels relative to the Laguna Woods average.

6.2 DIVERSITY INDEX
Figure 3, Diversity Index, identifies the diversity levels in each of the Laguna Woods census tracts based on Esri’s 2018 Diversity Index, which analyzes United States Census Population Estimates data. Figure 3 also identifies the locations of the 17 potential housing sites. The Diversity Index ranges from 0 (no diversity) to 100 (complete diversity). Esri's definition of diversity is twodimensional and combines racial diversity with ethnic diversity. The measure evaluates the likelihood that two persons, chosen at random from the same area, belong to different races or ethnic groups. If an area's entire population belongs to one race group and one ethnic group, then an area has zero diversity.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
Service Layer Credits: Bing Maps Hybrid: ©
2021 Microsoft Corporation © 2021 Maxar
©CNES (2021) Distribution Airbus DS © 2021
")11 ")1
")10
")2
")13
")14
")12
")16
")3
")5
")6
")7
")9
")4
")8
")15
")17
LEGEND
Housing Sites Poverty Status (Tract) - ACS (2015-2019)
Percent of Population whose income in the past 12 months is below poverty level < 10%
10% - 20%
SOURCE: Bing (2018); City of Laguna Woods (5/2021); California Tax Credit Allocation Committee (2021) I:\LWD2101\GIS\Pro\Demographics.aprx (10/27/2021)
FIGURE 2
Laguna Woods Residential Site Inventory
Poverty Status
0 600 1200
FEET
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 26
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
Service Layer Credits: Bing Maps Hybrid: ©
2021 Microsoft Corporation © 2021 Maxar
©CNES (2021) Distribution Airbus DS © 2021
")11 ")1
")10
")2
")13
")14
")12
")16
")3
")5
")6
")7
")9
")4
")8
")15
")17
LEGEND
Housing Sites 2018 Diversity Index (Esri)
Lower Diversity
≤55.0%
≤70.0%
≤85.0%
SOURCE: Bing (2018); City of Laguna Woods (5/2021); California Tax Credit Allocation Committee (2021) I:\LWD2101\GIS\Pro\Demographics.aprx (10/27/2021)
FIGURE 3
Laguna Woods Residential Site Inventory
Diversity Index
0 600 1200
FEET
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 28
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 29
In theory, the Diversity Index ranges from 0 (no diversity) to 100 (complete diversity). The Diversity Index is a continuum from 0 to 100, where an area's Diversity Index tends toward 100 when the population is more evenly divided across race and ethnic groups. If an area's entire population is divided evenly into two race groups and one ethnic group, then the Diversity Index equals 50. As more race groups are evenly represented in the population, the Diversity Index increases. As shown in Figure 3, the Diversity Index varies substantially among the Laguna Woods census tracts.

Of the 17 sites, five (Sites 1, 5, 6, 11, and 15) are located in areas of Laguna Woods that score lower on the Diversity Index. Seven of the sites (Sites 7, 9, 10, 12, 13, 14, and 16) are located in areas that score higher on the Diversity Index, with scores that are less than or equal to the 40–55th percentile.

Four of the sites (Sites 2, 3, 4, and 8) are located in areas that scored within the 70–85th percentile.

This analysis suggests that Sites 2, 3, 4, 7, 8, 9, 10, 12, 13, 14, and 16 would be stronger candidates for developing affordable housing due to their higher Diversity Index scores. Developing affordable housing at these sites would comply with AFFH policies and affirmatively further fair housing.

6.3 HEALTHY PLACES
Figure 4, Healthy Places Index, shows the Laguna Woods census tracts and their scores on the Public Health Alliance of Southern California (PHASC) 2021 Healthy Places Index (HPI). The HPI was developed to assist in exploring local factors that predict life expectancy and provides overall scores and detailed data on specific policy action areas that shape health. Higher HPI scores represent communities where economic, education, transportation, social, neighborhood, clean environment, housing, and healthcare access indicators suggest that conditions that are conducive to healthy living are present. Figure 4 also identifies the locations of the 17 potential housing sites. As shown in Figure 4, the HPI varies substantially among the Laguna Woods census tracts.

Of the 17 sites, six of the sites (Sites 9, 12, 13, 14, 16, and 17) are located in areas that scored between the 20th and 40th percentile on the HPI. Five of the sites (Sites 1, 5, 6, 11, and 15) are located in areas that scored between the 40th and 60th percentile, followed by Sites 7 and 8, which are located in areas that scored between the 60th and 80th percentile on the HPI.

Based on this analysis, Sites 1, 5, 6, 7, 8, 11, and 15 are preferable for affordable housing development due to their higher HPI scores, which would affirmatively further fair housing.

6.4 SOCIAL VULNERABILITY
Figure 5, Social Vulnerability Index, identifies the census tracts throughout Laguna Woods and their scores on the Centers for Disease Control and Prevention (CDC) 2018 Social Vulnerability Index (SVI). “Social vulnerability” refers to the potential negative effects on communities caused by external stresses on human health. Such stresses can include natural or human-caused disasters, or disease outbreaks. The SVI uses 15 different United States Census variables to help local officials identify communities that may need support before, during, or after disasters. Figure 5 also identifies the locations of the 17 potential housing sites.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 30
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
Service Layer Credits: Bing Maps Hybrid: ©
2021 Microsoft Corporation © 2021 Maxar
©CNES (2021) Distribution Airbus DS © 2021
")11 ")1
")10
")2
")13
")14
")12
")16
")3
")5
")6
")7
")9
")4
")8
")15
")17
LEGEND
Housing Sites Healthy Places Index
20% - 40%
40% - 60%
60% - 80%
80% - 100%
SOURCE: Bing (2018); City of Laguna Woods (5/2021); California Tax Credit Allocation Committee (2021) I:\LWD2101\GIS\Pro\Demographics.aprx (10/27/2021)
FIGURE 4
Laguna Woods Residential Site Inventory
Healthy Places Index
0 600 1200
FEET
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 32
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
Service Layer Credits: Bing Maps Hybrid: ©
2021 Microsoft Corporation © 2021 Maxar
©CNES (2021) Distribution Airbus DS © 2021
")11 ")1
")10
")2
")13
")14
")12
")16
")3
")5
")6
")7
")9
")4
")8
")15
")17
LEGEND
Housing Sites Social Vulnerability Index - (CDC, 2018)
Lower Vulnerabilty
Higher Vulnerability
SOURCE: Bing (2018); City of Laguna Woods (5/2021); California Tax Credit Allocation Committee (2021) I:\LWD2101\GIS\Pro\Demographics.aprx (10/27/2021)
FIGURE 5
Laguna Woods Residential Site Inventory
Social Vulnerability Index
0 600 1200
FEET
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 34
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 35
There is one census tract within Laguna Woods that is identified as having a “higher vulnerability” per AFFH data. None of the 17 sites are located in that census tract. All of the sites are located in census tracts with a “moderate vulnerability” based on the SVI.

Despite the fact that the potential housing sites are located in areas subject to moderate levels of social vulnerability, they remain good candidates for affordable housing to affirmatively further fair housing.

6.5 TAX CREDIT ALLOCATION COMMITTEE OPPORTUNITY AREAS
HCD and the California Tax Credit Allocation Committee (TCAC) convened the California Fair Housing Task Force to provide research, evidence-based policy recommendations, and other strategic recommendations to HCD and other related state agencies/departments to further fair housing goals (as defined by HCD). The California Fair Housing Task Force has compiled data to identify resource levels across the state to accompany new policies aimed at increasing access to high opportunity areas for families with children in housing financed with 9 percent Low Income Housing Tax Credits (LIHTCs). The data reflect composite scores of four different domains made up of a set of indicators. Table E shows the full list of these domains and indicators.

Table E: Domains and Lists of Indicators for Opportunity Maps Domain Indicator
Economic  Poverty
 Adult education
 Employment
 Job proximity
 Median home value
Environmental  CalEnviroScreen 3.0 pollution indicators and values Education  Math proficiency
 Reading proficiency
 High school graduation rates
 Student poverty rates
Poverty and Racial Segregation  Poverty: tracts with at least 30% of population under federal poverty line  Racial segregation: Tracts with location quotient higher than 1.25 for Blacks, Hispanics, Asians, or all people of color in comparison to the County Source: California Fair Housing Task Force. 2020. Methodology for the 2020 TCAC/HCD Opportunity Maps. June.

Figure 6, TCAC Opportunity Areas, shows the Laguna Woods census tracts and their categorization based on their composite scores. Areas with higher composite scores are those areas that have the highest number of resources. Areas with lower composite scores have a comparatively lower number of resources. Figure 6 also identifies the locations of the 17 potential housing sites. As shown in Figure 6, the composite scores vary substantially among the Laguna Woods census tracts.

Of the 17 sites, 13 of the sites (Sites 1, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, and 17) are located in “Low Resource” areas. Four of the sites (Sites 2, 3, 4, and 8) are located in portions of Laguna Woods that are categorized as being “Moderate Resource—Rapidly Changing” areas.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 36
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
Service Layer Credits: Bing Maps Hybrid: ©
2021 Microsoft Corporation © 2021 Maxar
©CNES (2021) Distribution Airbus DS © 2021
")11 ")1
")10
")2
")13
")14
")12
")16
")3
")5
")6
")7
")9
")4
")8
")15
")17
LEGEND
Housing Sites TCAC Opportunity Areas 2021 - Composite Score Highest Resource
Moderate Resource (Rapidly Changing)
Low Resource
SOURCE: Bing (2018); City of Laguna Woods (5/2021); California Tax Credit Allocation Committee (2021) I:\LWD2101\GIS\Pro\Demographics.aprx (10/27/2021)
FIGURE 6
Laguna Woods Residential Site Inventory
TCAC Opportunity Areas
0 600 1200
FEET
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 38
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 39
Based on this analysis, Sites 2, 3, 4, and 8 are preferable for affordable housing development due to their locations in higher resource areas relative to what is available in Laguna Woods, which would affirmatively further fair housing.

6.6 REGIONAL OPPORTUNITY INDEX
The UC Davis Center for Regional Change and Rabobank partnered to develop the Regional Opportunity Index (ROI) tool, which is intended to help communities understand local social and economic opportunities. The ROI tool incorporates both “People” and “Place” components, integrating economic, infrastructure, environmental, and social indicators into a comprehensive assessment of the factors driving opportunity.

The People component of the ROI is a relative measure of people's assets in education, the economy, housing, mobility/transportation, health/environment, and civic life. According to the ROI, Laguna Woods ranks moderate to high in the People component.

The Place component of the ROI is a relative measure of an area's assets in education, the economy, housing, mobility/transportation, health/environment, and civic life. According to the ROI, most areas in Laguna Woods rank in the highest level while the westernmost portion of Laguna Woods ranks in the low level of opportunity.

In general, the ROI for Laguna Woods is relatively high when compared against the rest of Orange County. The lowest access to opportunity is concentrated in the northwestern portion of Orange County, while the highest access to opportunity is concentrated in the coastal and southern areas of Orange County, which is where Laguna Woods is located.

6.7 DISABILITY, FAMILY STATUS, AND INCOME
Table F provides data compiled by the U.S. Census Bureau related to disability, poverty status, median household income, and household type for Orange County, Laguna Woods, and the eight census tracts that are partially or entirely within Laguna Woods.

Table F indicates that seven of the eight census tracts in Laguna Woods have a higher percentage of their population with a disability than Orange County. Overall, 27.3 percent of Laguna Woods’ population has some form of disability, a figure that is higher than each of the individual census tracts within Laguna Woods. Census Tract 626.21 reports the lowest population percentage with a disability (7.2 percent). All 17 of the potential housing sites are located in census tracts with a higher percentage of disabled residents than Orange County.

As described in Table F, 11.5 percent of Laguna Woods’ residents are living below the federal poverty threshold, which is slightly higher than Orange County overall (10.9 percent). Of the eight census tracts in Laguna Woods, five have a higher percentage of residents living below the poverty threshold than Orange County. Seven of the 17 potential housing sites are located in census tracts with a higher percentage of residents living below the poverty threshold than Orange County.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 40
Table F: Disability, Family Status, and Income
Jurisdiction
Population
with
Disability
(%)3
Population
Below
Poverty
(%)2
Median
Household
Income1
MarriedCouple
Family4
Male
Householder4
Female
Householder4
Nonfamily
Household4
Orange County 8.5 10.9 $90,234 569,260 55,032 119,719 293,481 Laguna Woods 27.3 11.5 $44,020 3,590 83 309 7,021
Census Tract 626.21 7.2 7.7 $111,425 2,355 297 361 1,610 Census Tract 626.22 22.6 13.7 $44,119 951 0 47 1,537
Census Tract 626.25 14.1 12.4 $45,214 831 46 131 952
Census Tract 626.41 13.8 3.3 $88,986 1,034 5 147 838
Census Tract 626.46 25.4 10.6 $41,875 762 48 0 1,555
Census Tract 626.47 16.9 15.7 $54,327 543 143 217 1,448 Census Tract 626.48 26.4 12.9 $45,000 470 8 84 1,300
Census Tract 626.49 24.5 11.1 $60,254 711 28 33 1,094 1 American Community Survey 2019 5-Year Estimates. Table S1901. 2 American Community Survey 2019 5-Year Estimates. Table S1701. 3 American Community Survey 2019 5-Year Estimates. Table S1810. 4 American Community Survey 2019 5-Year Estimates. Table S1101.

Table F also shows that Laguna Woods has a substantially lower median household income ($44,020) than Orange County ($90,234). Of the eight census tracts in Laguna Woods, only Census Tract 626.21 has a higher median household income ($111,425) than Orange County. All 17 of the potential housing sites are located in census tracts with a lower median household income than Orange County.

Additionally, six of the eight census tracts in Laguna Woods, and Laguna Woods as a whole, have a higher number of nonfamily households than family, male householder, or female householder households, which reflects Laguna Woods’ character as being home to a large senior population, many of whom do not live in family households. By comparison, Orange County has a much larger number of married-couple families than nonfamily, male householder, or female householder families. In total, 11 of the 17 potential housing sites are located in census tracts with a larger number of nonfamily households than married-couple family households.

6.8 AGE AND INCOME RESTRICTIONS
As described in Section 4.0 above, the majority of Laguna Woods is comprised of private communities that are both income-restricted and age-restricted to adults aged 55 and older.

Consequently, most of the City’s housing stock is subject to income and age restrictions, which has impeded housing choices for lower-income and younger residents interested in relocating to Laguna Woods.

6.9 CONCLUDING ANALYSIS
Each of the 17 potential housing sites were also analyzed against three additional AFFH data layer maps: (1) areas that are defined by either the TCAC or HCD Opportunity Maps as being an area of “High Segregation and Poverty” or by the United States Department of Housing and Urban Development (HUD) as a “Racially or Ethically Concentrated Area of Poverty”; (2) areas identified as ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 41
State Bill (SB) 535-defined “Disadvantaged Communities”; and (3) locations of cases throughout Laguna Woods that were filed with HUD’s Fair Housing Enforcement and Outreach (FHEO) branch in 2020.

Analysis of these data sets showed that Laguna Woods does not contain any areas defined by either the TCAC or HCD Opportunity Maps as being an area of High Segregation and Poverty or by HUD as a Racially or Ethically Concentrated Area of Poverty. Although HCD’s guidance for implementing AFFH states that affordable housing should aim to be developed in those areas in order to further fair housing, no such areas exist within Laguna Woods. Furthermore, Laguna Woods does not contain any SB 535-defined Disadvantaged Communities, and, as such, none of Laguna Woods’ potential housing sites are located in a SB 535-defined Disadvantaged Community. Additionally, the entirety of Laguna Woods is located in an area that had less than .01 percent of complaints filed with FHEO in 2020, which means that few to no housing discrimination complaints have been filed in Laguna Woods and that housing discrimination is not currently seen as a major issue within Laguna Woods.

Using the various data available from HCD’s AFFH Data Viewer, each of the 17 sites is situated within a census tract that is desirable from an AFFH standpoint for at least one of the categories described above. Therefore, each of the sites would affirmatively further fair housing opportunities.

Further, all 17 of the potential housing sites are located in census tracts with a higher percentage of disabled residents and a lower median household income than Orange County. In addition, seven of the 17 potential housing sites are located in census tracts with a higher percentage of residents living below the poverty threshold than Orange County, and 11 of the 17 potential housing sites are located in census tracts with a larger number of nonfamily households than married-couple family households. This indicates that the proposed housing sites are not concentrated in an area of elevated poverty, which suggests that the development of new affordable housing units on these sites would facilitate the integration of lower-income households into the community in a way that would affirmatively further fair housing opportunities.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 42

7.0 REALISTIC DEVELOPMENT CAPACITY
Government Code Section 65583.2(c) requires that the City demonstrate that the projected residential development capacity of the sites can realistically be achieved. The number of estimated units should be adjusted, as necessary, based on land use controls and site improvement requirements; the realistic development capacity for the site; typical densities of existing or approved residential developments at a similar affordability level in the surrounding area; and the current or planned availability and accessibility of sufficient water, sewer, and dry utilities.

The following assumptions were incorporated into the realistic development capacity estimates:
• None of the sites are constrained by the availability or accessibility of sufficient water, sewer, and dry utilities. Therefore, no adjustments were made. • The net developable area on each site was adjusted to 95 percent of the parcel area to reflect the need to construct on-site improvements, including sidewalks and utility easements, and other land use controls.
• The developable area on Site 8 was adjusted to approximately 60 percent of the parcel due to slope hazard constraints on the western third of the site. • The development capacity on three of the five sites that are currently developed with places of worship (Sites 10–12) and Sites 9 and 17 was limited to 15–20 units per acre to reflect the proximity of those sites to existing, adjacent, lower-density residential uses. • The development capacity on one of the five sites that are currently developed with places of worship (Site 13) and Site 16 was limited to 8–10 units per acre to reflect the proximity of those sites to existing, adjacent, lower-density residential uses. • The development capacity at each of the sites was adjusted to 95 percent of the maximum density, and the number of units was rounded down to the nearest whole number, to reflect that not every housing project is built out to maximum density.

Table G estimates the number of new housing units that can realistically be built on each of the 17 potential housing sites based on the assumptions provided above. As shown in Table G, the total future housing construction potential on the 17 sites, based on realistic capacities, is 1,196 units.

This includes an excess, or overzoning, of 199 units, or approximately 20 percent more than the 997 units included in the City’s housing needs allocation.

Overzoning helps to (1) ensure that sufficient adequate sites will remain available at all times to meet the remaining unmet housing needs for each income category, per Government Code Section 65863 (“No Net Loss Law”), and (2) compensate for urban land left vacant due to ownership and development constraints, per HCD’s “Housing Element Site Inventory Guidebook Government Code Section 65583.2” published June 10, 2020. HCD also notes that “a sufficient supply of land beyond the time frame of the housing element helps prevent land shortages from bidding up land costs.” ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 43
Table G: Potential Housing Unit Production
Site Name
Vacant/
Nonvac
ant Site
Parcel
Size
(ac)
Proposed
Zoning Overlay
District
Densities
(du/ac)
Development Capacity Suitable for
Lower-Income
Households
(Density &
Parcel Size)
Financially
Feasible for
Federal &
State
Funding
Consolidation
Potential due to
Adjacency of
Other Candidate
Site
Income Level
Very Total
Low Low Moderate Above Moderate
1 Town Centre Vacant Lot V 1.8 Residential HD 30 to 50 10 11 0 60 81 Yes Yes Yes 2 Pacific Hills Calvary Chapel
Parking Lot
NV 0.696 Residential HD 30 to 50 2 2 0 27 31 Yes No No
3 Rossmoor Electric NV 1.232 Residential HD 30 to 50 5 6 0 44 55 Yes Yes No 4 Saddleback Golf Cars NV 1.235 Residential HD 30 to 50 5 6 0 44 55 Yes Yes No 5 Laguna Woods Self Storage NV 5.249 Residential HD 30 to 50 76 79 0 81 236 Yes No Yes 6 Animal Hospital NV 0.76 Residential HD 30 to 50 2 3 0 29 34 Yes No Yes 7 PS Business Park (excludes Jack
in the Box)
NV 2.867 Residential HD 30 to 50 24 26 0 79 129 Yes Yes No 8 Smart Parke NV 2.373 Residential HD 30 to 50 6 7 0 50 63 Yes Yes No 9 McCormick & Son Mortuary NV 1.411 Residential MLD 15 to 20 0 0 0 25 25 No No Yes 10 Lutheran Church of the Cross NV 3.028 Residential MLD 15 to 20 0 0 35 19 54 No Yes No 11 Geneva Presbyterian Church NV 3.955 Residential MLD 15 to 20 0 0 49 22 71 No Yes No 12 Saint Nicholas Catholic Church NV 4.596 Residential MLD 15 to 20 0 0 61 22 83 No Yes Yes 13 Temple Judea NV 1.757 Residential LD 8 to 10 0 0 0 15 15 No No Yes 14 Laguna Country United
Methodist Church
NV 3.899 Residential MD 20 to 30 0 0 85 20 105 Yes Yes Yes 15 Medical Building in Town
Centre
NV 2.69 Residential HD 30 to 50 22 23 0 76 121 Yes Yes Yes 16 Willow Tree Center East NV 3.095 Residential LD 8 to 10 0 0 0 27 27 No No Yes 17 Helm Center NV 0.65 Residential MLD 15 to 20 0 0 0 11 11 No No Yes Subtotal (units on nonvacant sites only)/93% of Lower Income Units 142 152 230 591 1,115 - - - Subtotal (including all sites) 152 163 230 651 1,196 935 817 738 City’s 2021–2029 RHNA Allocation 127 136 192 542 997
Surplus/(Deficiency) 25 27 38 109 199
Unmet Need (Only Deficiencies) - - - - -
Source: Compiled by LSA Associates, Inc. (October 2021). ac = acre(s)
City = City of Laguna Woods
du/ac = dwelling units per acre
NV = nonvacant
Residential HD = Residential High Density
Residential LD = Residential Low Density
Residential MD = Residential Medium Density
Residential MLD = Residential Medium-Low Density
RHNA = Regional Housing Needs Assessment
V = vacant
ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 44
Table G also indicates that the 17 sites have the capacity to accommodate at least 312 lower-income units, which is 49 units, or 18.6 percent more than the 263 lower-income units included in the City’s housing needs allocation. In addition, the sites have the capacity to accommodate at least 211 moderate-income units, which is 19 units, or approximately 9.9 percent more than the 192 moderate income units included in the City’s housing needs allocation. Nine of the sites include maximum densities at or above HCD’s standard threshold for accommodating lower-income units (30 units per acre) on properties 0.5 to 10 acres in size. In total, 11 of the sites could produce a sufficient number of units that would fall within the generally accepted range of financial feasibility for federal- or State-funded projects (50–150 units per project). Ten of the sites are adjacent to at least one other site, which provides opportunities for lot consolidation, thereby improving viability for development/redevelopment.

Of the 315 lower-income units identified in Table G, 22 units on Site 1 are viewed as realistic for development on vacant land, which represents approximately 8 percent of the City’s housing needs allocation for lower-income households. Although the City intends to rely on nonvacant sites to accommodate more than 50 percent of its housing needs allocation for lower-income households, the City has determined that it would not be feasible to develop housing on any other vacant land that is within its jurisdiction. This is due to the fact that, as described in further detail in Section 4.0 of this Housing Sites Inventory and Analysis, most of the limited amount of vacant land that exists within Laguna Woods consists of publicly owned open space properties that are subject to conservation easements or deed restrictions that prohibit future development.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 45

8.0 QUANTIFIED OBJECTIVES
Government Code Section 65583(b)(1) and (2) require that the City establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. Table H summarizes the City’s quantified objectives with regard to construction, rehabilitation, and preservation of housing over a five-year time period. These objectives have been established based on the City’s available resources and ability to satisfy housing needs within the context of the General Plan requirements set forth in state law.

Table H: Summary of Quantified Objectives
Income Level Number of Units Rehabilitation Conservation/Preservation1 Very Low* (<50% of AMI) 127 5 N/A
Low (50–80% of AMI) 136 5 N/A
Moderate (80–120% of AMI) 192 5 N/A
Above Moderate (>120% of AMI) 542 5 N/A
Total 997 20 N/A 1 As described in the City’s Housing Needs Assessment, none of the 17 affordable units within Laguna Woods is at risk of conversion to market rate units in the next 10 years; therefore, none of the units is in need of conservation or preservation.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit C - 46
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
January 2022

EXHIBIT D

HOUSING ELEMENT PERFORMANCE

ASSESSMENT

CITY OF LAGUNA WOODS
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
January 2022

EXHIBIT D

HOUSING ELEMENT PERFORMANCE

ASSESSMENT

CITY OF LAGUNA WOODS
Submitted to:

City of Laguna Woods
24264 El Toro Road
Laguna Woods, California 92637
Prepared by:

LSA
20 Executive Park, Suite 200
Irvine, California 92614
(949) 553‐0666
Project No. LWD2101
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 2022 HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
) Exhibit D ‐ i

1.0 PROGRESS IN IMPLEMENTATION......................................................................... 1

2.0 EFFECTIVENESS OF THE ELEMENT/SPECIAL NEEDS POPULATIONS ........................ 6

3.0 APPROPRIATENESS OF GOALS, OBJECTIVES, POLICIES, AND PROGRAMS.............. 7

4.0 ASSEMBLY BILL 1233 – SHORTFALL OF SITES FROM THE 5TH CYCLE PLANNING PERIOD ............................................................................................ 11 TABLE
Table A: Review of the City of Laguna Wood’s General Plan 2014–2021 Housing Element.................. 2 ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
J ANUARY 2022
Exhibit D ‐ ii
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 2022 HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit D ‐ 1

1.0 PROGRESS IN IMPLEMENTATION
Pursuant to Government Code Section 65588, each local government shall review its housing element as frequently as appropriate to evaluate all of the following: (1) the appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal, (2) the effectiveness of the housing element in attainment of the community's housing goals and objectives, (3) the progress of the city, county, or city and county in implementation of the housing element, and (4) the effectiveness of goals, policies, and related actions to meet the community’s special housing needs.

State law requires that each Housing Element include a review of the progress made toward achieving the affordable housing goals of the previous Housing Element, and of the effectiveness and appropriateness of those previously adopted objectives. These results should be quantified where possible, but may be qualitative where necessary.

The City of Laguna Wood’s (City) last Housing Element was adopted in 2014, and set forth a series of implementation measures with related objectives and policies for the following issue areas:
maintain and improve residential neighborhoods and support quality housing for all residents; promote and encourage the development of housing opportunities to accommodate current and projected housing need; encourage and facilitate the development of affordable housing for all economic segments of the community, especially extremely‐ and low‐income residents; and facilitate housing, transportation, and physical accommodations to aid persons with disabilities. This section reviews the continued appropriateness of these programs, the effectiveness of the current 2014–2021 Housing Element, and the progress in its implementation since 2014.

Table A, below, summarizes the City’s progress for each implementation measure identified in the current Housing Element.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING E LEMENT P ERFORMANCE ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 2022
Exhibit D ‐ 2
Table A: Review of the City of Laguna Wood’s General Plan 2014–2021 Housing Element Housing Element Implementation Status Continue/Modify/Delete Objective 1: Maintain and improve residential neighborhoods and support quality housing for all residents Policy 1.A: Work towards full implementation of the 2014–2021 Housing Element objectives, policies, and programs in the Housing element.

Program 1.A.1: Provide a progress report
on the 2014–2021 Housing Element
programs and quantified objectives as part
of the annual General Plan status reports
to the State.

Ongoing: This is the City’s normal
practice. The City submitted annual
progress reports to the Department of
Housing and Community Development
(HCD) each year during the 2014–2021
Housing Element period.

The City will delete the program
and replace it with Program H‐

4.1.2. Policy 1.B: Promote, encourage, and facilitate efforts to preserve the City’s housing stock.

Program 1.B.1: Continue to promote on‐
going building maintenance activities. To
promote building maintenance, the City
will:
 Identify available funds for building
maintenance activities and energy
efficiency upgrades.
 Disseminate public information on
available housing programs, such as the
energy efficient equipment retrofit
program (CDBG) at public counters and
the City’s website.
 Assist property owners and property
managers in their efforts to identify and
mitigate housing maintenance issues.

Ongoing: In 2010, the City obtained a
California Energy Commission grant
using federal funds to retrofit City Hall
with dual‐pane, low‐E windows and
energy efficient lighting and heating,
ventilation, and air conditioning
equipment. The project modeled
energy efficiency retrofits to property
owners and property managers.

Through June 2017, the City offered a
CDBG funded Residential Energy
Efficiency Improvement Program. The
City provides resources and assistance
daily regarding housing maintenance at
the building counter and via building
inspections.

The City will delete the program
and replace it with programs H‐

2.1.1, 2.2.1, and 2.2.3.

Objective 2: Promote and encourage the development of housing opportunities to accommodate current and projected housing need.

Policy 2.A: Promote construction of units consistent with the new construction needs identified in the Regional Housing Needs Assessment (RHNA).

Program 2.A.1: Work with property
owners in the development of Specific
Plans to guide the development of Urban
Activities Center parcels to include
residential development.

Abandoned: In 2017, after receiving an
application from the property owner,
the City amended the Land Use
Element of the City’s General Plan to
delete the Urban Activities Center land
use designation. All properties formerly
designated as Urban Activities Center
have been re‐designated and rezoned.

The City will delete the program
as the City has deleted the Urban
Activities Center land use
designation from the General
Plan.

Program 2.A.2: Work with commercial
property owners to establish residential/
commercial mixed use development
standards for the City’s Commercial land
use district.

Not yet Implemented: Sufficient
housing opportunities to accommodate
the City’s 2014–2021 RHNA allocation
exist without the establishment of
mixed use development standards.

The City will delete the program
and replace it with a new
rezoning program. See Program
H‐1.1.1.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 2022 HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit D ‐ 3
Table A: Review of the City of Laguna Wood’s General Plan 2014–2021 Housing Element Housing Element Implementation Status Continue/Modify/Delete Policy 2.B: Mitigate governmental constraints to the accommodation of special needs residents.

Program 2.B.1: Participate in the County
of Orange Consolidated Plan program and
in the Continuum of Care to provide
housing for special needs populations,
particularly extremely and very low
income persons. Participation will include
assigning a representative to participate in
meetings and events sponsored by these
programs. In addition, the Resource Guide
for Orange County Homeless and other
publications that support the program
goals will be distributed from City Hall.

Ongoing: The City participated in the
development of the County of Orange’s
Consolidated Plan for the years 2010 to
2015, and 2015 to 2019. In 2015, the
City hosted one of the County of
Orange’s Consolidated Plan Community
Workshops at City Hall. Various
homeless resources, including County
of Orange‐produced resources, are
available from City Hall.

The City will delete the program
and replace it with other
programs to address the needs
of the specified populations.

Program 2.B.2: Revise the Laguna Woods
Zoning Ordinance to identify zones that
will allow the development of transitional
housing [and] facilitate transitional
housing and supportive housing
developments that serve extremely and
very low income households, consistent
with Government Code Section
65583(c)(1). Because transitional and
supportive housing can be configured in
different ways – either as regular multi‐
family housing or as group quarters ‐ the
Zoning Ordinance amendment will ensure
that transitional and supportive housing
that function as a residential use will be
treated as residential uses and only
subject to those restrictions that apply to
other residential uses of the same type in
the same zone.

Implemented: Chapter 13.23 of the
Laguna Woods Municipal Code,
adopted in 2011. Laguna Woods
Municipal Code amended in 2018, see
Ordinance No. 18‐05.

The City will delete the program
and replace it with programs H‐

1.3.1, 1.3.2, and 1.3.3.

Program 2.B.3: Review and revise the
Laguna Woods Zoning Ordinance 13.23 in
regards to emergency homeless shelters to
ensure compliance with Government Code
Section 65583(a)(4).

Implemented: Chapter 13.23 of the
Laguna Woods Municipal Code,
adopted in 2011, was amended in
2018.

The City will delete the program
and replace it with Program

1.5.1. Objective 3: Encourage and facilitate the development of affordable housing for all economic segments of the community, especially extremely‐ and low‐income residents.

Policy 3.A: Recognize the City’s leadership role in the maintenance, preservation, improvement, and development of affordable housing.

Program 3.A.1: Encourage and facilitate
the development of affordable housing by:
 Supporting non‐profit organizations
that address housing issues.
 Serving as an intermediary between
non‐profit organizations and interested
residential developers.
 Assisting in application preparation and
other efforts to secure funding sources
for development of housing for
extremely low‐, very low‐, low‐ and
Ongoing: The City encourages the
development of affordable housing as
required by State law. Resources,
information, and assistance for
developers and other interested parties
are available from City Hall. Seventeen
(17) specifically designated affordable
housing units are located in Laguna
Woods. From 2014 to 2020, the City
received no applications for any new
housing development projects
The City will delete the program
as the Housing Element includes
various programs to assist in the
development of affordable
housing.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING E LEMENT P ERFORMANCE ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 2022
Exhibit D ‐ 4
Table A: Review of the City of Laguna Wood’s General Plan 2014–2021 Housing Element Housing Element Implementation Status Continue/Modify/Delete moderate‐income residents.
 Making available regional and local
housing program information to
residents, and assisting residents in
contacting housing assistance
organizations.
 Inform interested developers about the
range of housing allowed in areas
outside of Laguna Woods Village,
including housing for families.
 Inform interested developers about the
State density bonus program incentives
available for development of affordable
housing.
(affordable as well as market rate
housing developments).

Program 3.A.2: Continue to encourage and
facilitate the use of the City’s density
bonus provisions to provide affordable
housing opportunities. Revise the density
bonus provisions as necessary in the City’s
Municipal Code to be consistent with State
density bonus law.

Ongoing: Section 13.26.040 of the
Laguna Woods Municipal Code,
adopted in 2013; Laguna Woods
Municipal Code amended in 2018; see
Ordinance No. 18‐03 and amended in
2020; see Ordinance No. 20‐02.

The City will delete the program
as the City’s residential density
bonus standards are consistent
with state law.

Program 3.A.3: Encourage residents to
apply, when available, for the Section 8
rental assistance program (through County
of Orange Housing Authority) for
extremely and very low‐income rental
households. Inform local rental property
owners and eligible residents of Section 8
assistance and Section 8 waitlist openings
through flyers and the City’s website.

Provide technical assistance during the
application process to interested
residents. While the City endeavors to
maintain the current level of assistance
through the Section 8 (72 vouchers)
program, the City has no jurisdiction over
the funding and operation of the Section 8
voucher program.

Ongoing: The City receives information
and application forms for Section 8
housing through the County of Orange
and makes them available to residents
from City Hall.

The City will delete the program
as the City provides referrals to
the OC Housing Authority as a
normal business practice.

Program 3.A.4: Continue to use CDBG
funds to fund projects that improve and
maintain the quality of the City’s housing
stock and residential infrastructure. While
the City endeavors to maintain the current
level of assistance through the CDBG
program, the City has no jurisdiction over
the funding and operation of the CDBG
program.

Ongoing: Through June 2017, the City
offered a CDBG‐funded Residential
Energy Efficiency Improvement
Program. Uncertainty surrounding the
future availability of CDBG funds, as
well as the impact of increasing
compliance requirements and law
enforcement costs on City resources,
resulted in the end of the program.

Staff continues to evaluate other
potential, future uses of CDBG housing
rehabilitation funds.

The City will delete the program.

See programs H‐2.1.1, 2.2.1, and

2.2.3. ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 2022 HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit D ‐ 5
Table A: Review of the City of Laguna Wood’s General Plan 2014–2021 Housing Element Housing Element Implementation Status Continue/Modify/Delete Program 3.A.5: The City has received no
complaints regarding any discriminatory
actions and will continue to enforce all fair
housing laws. The City Manager is
responsible for addressing and/or
referring fair housing complaints and
questions to the Fair Housing Council of
Orange and/or HUD. The City will provide
information on fair housing rights and
responsibilities, and seek to remedy
known acts of discrimination within the
community. The City will disseminate fair
housing information at City Hall and
throughout Laguna Woods in a variety of
community places.

Ongoing: Fair housing assistance,
resources, and information is available
from City Hall, through the City’s code
enforcement operation, and upon
request.

The City will delete the program
and replace it with Priority Issue

3. Program 3.A.6: Review city processes and
procedures as they pertain to the
establishment of new housing, including
market rate and all forms of affordable
housing to remove undue constraints
which hinder the development of new
housing opportunities.

Ongoing: City staff has identified no
undue constraints which hinder the
development of new housing
opportunities.

The City will delete the program
as the Housing Element includes
various programs related to
updating City processes and
procedures.

Program 3.A.7: Research potential funding
sources (grants, loans, and other funds)
which can be used towards the planning
and development of affordable housing.

Ongoing: City staff continues to explore
sources of funding to assist with
affordable housing development.

The City will delete the program
as the Housing Element includes
various programs to assist in the
development of affordable
housing.

Objective 4: Facilitate housing, transportation and physical accommodations to aid persons with disabilities.

Policy 4.A: Maintain zoning/development standards that guide development of affordable housing near public transportation, and promote project designs that are accessible and accommodating to the disabled.

Program 4.A.1: Partner with property
owners to identify and accomplish the
retrofit of dwelling units and common
facilities for handicapped accessibility. The
City will participate at board meetings of
the housing mutuals and the Golden Rain
Foundation, the principal property owner
in the City, to encourage retrofitting.

Not yet Implemented: While City
officials often meet with the
representatives of major property
owners, a mutual approach to
promoting retrofitting within the
community is yet to be developed.

The City will delete the program
and replace it with programs H‐

2.2.1 and 2.2.3.

CDBG = Community Development Block Grant
City = City of Laguna Woods
HCD = California Department of Housing and Community Development HUD = United States Department of Housing and Urban Development ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING E LEMENT P ERFORMANCE ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 2022
Exhibit D ‐ 6

2.0 EFFECTIVENESS OF THE ELEMENT/SPECIAL NEEDS POPULATIONS The 2014–2021 Housing Element resulted in changes to the Laguna Woods Zoning Ordinance that resulted in compliance of emergency homeless shelters with State law, as well as identification of zones that allow the development of transitional housing and facilitation of transitional housing and supportive housing developments that serve extremely‐ and very‐low income households in those zones. For the reasons set forth in Table A, the City was unable to complete certain programs included in the 2014–2021 Housing Element, such as the creation of the two new housing units set by the Regional Housing Needs Assessment (RHNA) for the 5th Housing Element Cycle; working with property owners in the development of Specific Plans to guide the development of Urban Activities Center parcels to include residential development; the establishment of residential/commercial mixed use development standards for the City’s Commercial land use district; and the retrofit of dwelling units and common facilities for handicapped accessibility. Overall, the 2014–2021 Housing Element was effective in providing fair housing assistance, resources, and information to residents participating in the County of Orange Consolidated Program to provide housing for special needs populations, particularly extremely and very‐low income persons, and continuing to maintain and improve residential neighborhoods.

Refer to Table A in the previous section for a discussion of whether the programs included in the 2014–2021 Housing Element should be continued, modified, or deleted based on their effectiveness. Table A also addresses various programs related to the housing needs of special needs populations (Programs 2.B.1, 2.B.2, 2.B.3, 3.A.1, and 4.A.1).

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 2022 HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit D ‐ 7

3.0 APPROPRIATENESS OF GOALS, OBJECTIVES, POLICIES, AND PROGRAMS The 2014–2021 Housing Element established a comprehensive and firm basis for the City to move forward towards the achievement of the goals, policies, and programs in the document. As a result, Table A shows that many of the programs were achieved or implemented. Some major amendments included in the 2021–2029 Housing Element incorporate what has been learned from the results of the 2014–2021 Housing Element, including:
 Inclusion of a frequently asked questions (FAQs) section for the RHNA process to promote clarity and a common understanding of both the RHNA process and the City’s associated obligations.  Inclusion of “goals” in addition to “policy objectives” to provide declarative statements that set forth the City’s approach to each of the priority issues.  Objective 2 in the 2014–2021 Housing Element evolved into Policy Objective H‐1.1 in the 2021– 2029 Housing Element, which includes making sites available to accommodate current and projected housing needs for groups of all income levels in accordance with California Government Code Section 65583(c)(1). For implementation of Policy Objective H‐1.1, the following program was added:
○ Rezone the 17 potential housing sites identified in the Housing Sites Inventory and Analysis to accommodate the City’s housing needs allocation.
 Objective 3 in the 2014–2021 Housing Element evolved into Policy Objective H‐1.2 in the 2021– 2029 Housing Element, which states that the City should assist in developing adequate housing to meeting the needs of extremely low, very low‐ low, and moderate‐income households. For implementation of Policy Objective H‐1.2, the following programs were added:
○ Prepare and maintain a webpage with information related to the 17 potential housing sites identified in the Housing Sites Inventory and Analysis, including a Geographic Information System (GIS) map layer with geospatial information.
○ Conduct a market study and then amend the existing inclusionary housing ordinance to modify the minimum percentages of new housing units that must be deed‐restricted for extremely low, very low, and low‐income households, as feasible and advantageous to promote the development of affordable housing.
○ Adopt an ordinance creating an expedited and fee‐reduced lot consolidation process for consolidations involving any one or more of the 17 potential housing sites identified in the Housing Sites Inventory and Analysis for the purpose of developing housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or low‐income households; or, at least 50% of housing units are affordable for moderate‐income households. To be eligible, the housing units shall be subject to an affordability covenant for at least 55 years.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING E LEMENT P ERFORMANCE ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 2022
Exhibit D ‐ 8
○ Adopt an ordinance waiving or reducing City building permit fees for housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or low‐income households; or, at least 50% of housing units are affordable for moderate‐income households. To be eligible, the housing units shall be subject to an affordability covenant for at least 55 years. ○ Amend various, existing housing‐related provisions of the Laguna Woods Municipal Code to promote regulatory clarity.
○ Continue to maintain website information regarding fees, exactions, and affordability requirements imposed by the City that are applicable to housing development projects, in accordance with California Government Code Section 65940.1.  Objective 4 in the 2014–2021 Housing Element evolved into Policy Objective H‐1.3 in the 2021– 2029 Housing Element, which effectively changes the wording to provide reasonable accommodations for housing that is not only designed for persons with disabilities, but also intended for occupancy by or with supportive services for persons with disabilities. For implementation of Policy Objective H‐1.3, the following programs were added:
○ Continue to consider transitional housing a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.
○ Continue to consider supportive housing a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.
○ Continue to allow supportive housing, as defined by California Government Code Section 65650, as a use permitted by right in all zoning districts where multifamily and mixed uses are permitted, as provided in California Government Code Article 11 (commencing with Section 65650).
○ Amend various, existing housing‐related provisions of the Laguna Woods Municipal Code to conform to state law.
 The creation of a new objective, Policy Objective H‐1.4, which incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent for very low, low‐, or moderate‐income households.
 The creation of a new objective, Policy Objective H‐1.5, which makes sites available to accommodate emergency housing needs for homeless persons and families.  Objective 1 in the 2014–2021 Housing Element evolved into Policy Objective H‐2.1, Policy Objective H‐2.2, and Policy Objective H‐2.3, which add promotion of accessible and accommodating housing options for persons with special needs and promotion of housing ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 2022 HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit D ‐ 9
conservation and revitalization. For implementation of Policy Objectives H‐2.1, H‐2.2, and H‐2.3, the following programs were added:
○ Prepare and maintain a webpage with information on home improvement‐related financial assistance opportunities available to extremely low, very low, and low‐income households.

Train City staff to make referrals using the webpage.
○ Investigate potential incentives for property owners to extend existing affordability covenants beyond the planned expiration date. If feasible and economical, adopt such incentives.
○ Prepare and maintain a webpage with information on home improvement‐related financial assistance opportunities available to persons with special needs. Train City staff to make referrals using the webpage.
○ Adopt an ordinance waiving or reducing City building permit fees for improvements to the home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability, as provided for by California Health and Safety Code Section 17951.7. Consider including provisions allowing for similar building permit fee waivers or reductions for improvements to the home of a person with a qualifying disability that are made to accommodate that disability, regardless of age. Prepare and maintain a flyer with related information.
○ Provide opportunities for reimbursements, grants, or other forms of financial assistance to support home improvements that increase accessibility or functionality for persons with special needs.
○ Formalize a proactive code enforcement program that focuses on housing‐related rehabilitation needs, results in repairs, and seeks to mitigate potential cost, displacement, and relocation impacts on residents.
 Program 3.A.5 in the 2014–2021 Housing Element was expanded to Goal H‐3 in the 2021–2029 Housing Element, which involves the administration of housing and community development programs and activities in a manner to affirmatively further fair housing. Goal H‐3 includes policy objectives and implementation programs relating to the following:
○ Enhancing housing mobility and protecting existing residents from displacement.  The creation of a new goal, Goal H‐4, with its own set of policy objectives, which calls for analysis related to Housing Element implementation. This includes annual monitoring of the newly adopted Housing Element and coordination of the implementation of the newly adopted Housing Element with water and sewer agencies.

This update to the Housing Element revises existing programs and includes new programs, where appropriate, to ensure that the document reflects the City’s priorities and that updated ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING E LEMENT P ERFORMANCE ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 2022
Exhibit D ‐ 10
requirements of California State law are addressed. Refer to the General Plan for the goals, policies, and programs of this Housing Element.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
J ANUARY 2022 HOUSING E LEMENT P ERFORMANCE ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit D ‐ 11

4.0 ASSEMBLY BILL 1233 – SHORTFALL OF SITES FROM THE 5TH CYCLE

PLANNING PERIOD
According to the annual progress reports (APRs) provided to the California Department of Housing and Community Development (HCD), the RHNA quantified the need for housing within the City to be two new housing units during the 5th Cycle planning period. However, no new housing units were built in the City, indicating a shortfall of new housing units triggering the provisions of Government Code Section 65584.09.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

HOUSING E LEMENT P ERFORMANCE ASSESSMENT
L AGUNA WOODS , C ALIFORNIA J ANUARY 2022
Exhibit D ‐ 12
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
February 2022

EXHIBIT E

PUBLIC PARTICIPATION EFFORTS

CITY OF LAGUNA WOODS
ITEM 7.1 - Exhibit A to Attachment A DRAFT
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 PUBLIC P ARTICIPATION E FFORTS

L AGUNA WOODS , C ALIFORNIA
Exhibit E‐i

TABLE OF CONTENTS

1.0 INTRODUCTION................................................................................................... 1

2.0 SUMMARY OF EFFORTS....................................................................................... 2

2.1 Public Meeting #1 ................................................................................................................ 2

2.2 Public Meeting #2 ................................................................................................................ 2

2.3 Public Meeting #3 ................................................................................................................ 3

2.4 Public Meeting #4 ................................................................................................................ 3

2.5 HCD Review Period............................................................................................................... 4

2.6 California Environmental Quality Act Public Comment Period............................................ 4

2.7 Revised Draft Public Review Period ..................................................................................... 6

2.8 Public Meeting #5 ................................................................................................................ 7

2.9 Other Meetings.................................................................................................................... 8 ITEM 7.1 - Exhibit A to Attachment A DRAFT

PUBLIC P ARTICIPATION E FFORTS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit E ‐ ii
This page intentionally left blank
ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 PUBLIC P ARTICIPATION E FFORTS

L AGUNA WOODS , C ALIFORNIA
Exhibit E‐1

1.0 INTRODUCTION
Government Code Section 65583(c)(9) requires housing elements to “include a diligent effort by the local government to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.” Thisreport has been prepared to document efforts pursuant to Government Code Section 65583(c)(9).

ITEM 7.1 - Exhibit A to Attachment A DRAFT

PUBLIC P ARTICIPATION E FFORTS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit E‐2

2.0 SUMMARY OF EFFORTS
The Southern California Association of Governments (SCAG) approved its 6th Cycle Final Regional Housing Needs Assessment (RHNA) Allocation Plan on March 4, 2021, at which point the City of Laguna Wood’s (City) housing needs allocation was finalized.

2.1 PUBLIC MEETING #1
On May 5, 2021, the City Council held its first meeting to discuss and consider the RHNA and General Plan Housing Element Update. The meeting took place at Laguna Woods City Hall at 2 p.m. City Council meetings are also televised and closed captioned with reasonable accessibility accommodations available on request. Public comments were accepted in person, in writing, by telephone, or by computer (Zoom). All five members of the City Council participated.

The notice for this meeting was posted on the City’s website and at locations pursuant to Government Code Section 54954.2 on April 30, 2021. In addition, on April 30, 2021, email notification was provided to parties who had requested such notification or contacted City staff previously. As of April 30, 2021, the distribution list consisted of 10 email addresses, including residents and representatives from the League of Women Voters of Orange Coast and Orange County United Way.

The presentation at this meeting included an introduction to the RHNA process and an overview of the City’s housing needs allocation, required actions, and draft housing needs assessment. Frequently asked questions were also discussed. A draft housing needs assessment and RHNA Frequently Asked Questions document was included in the agenda packet.

At this meeting, one resident spoke during public comments.

2.2 PUBLIC MEETING #2
On May 19, 2021, the City Council held its second meeting to discuss and consider the RHNA and General Plan Housing Element Update. The meeting took place at Laguna Woods City Hall at 2 p.m.

City Council meetings are also televised and closed captioned with reasonable accessibility accommodations available on request. Public comments were accepted in person, in writing, by telephone, or by computer (Zoom). All five members of the City Council participated.

The notice for this meeting was posted on the City’s website and at locations pursuant to Government Code Section 54954.2 on May 14, 2021. In addition, on May 14, 2021, email notification was provided to parties who had requested such notification or contacted City staff previously. As of May 14, 2021, the distribution list consisted of 11 email addresses, including residents and representatives from the League of Women Voters of Orange Coast and Orange County United Way.

The presentation at this meeting included background information on the RHNA process and an overview of the City’s housing needs allocation, and draft housing needs assessment. Staff also discussed a number of sites that community members might consider vacant based on appearance and associated constraintsthat could affect housing development. The City’s new project website was ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 PUBLIC P ARTICIPATION E FFORTS

L AGUNA WOODS , C ALIFORNIA
Exhibit E‐3
also announced (www.cityoflagunawoods.org/projects). A draft housing sites inventory scenario and RHNA Frequently Asked Questions document were included in the agenda packet.

At this meeting, five residents and Cesar Covarrubias, Executive Director of The Kennedy Commission, spoke during public comments. Written public comments were received from seven residents (including one resident on behalf of the Welcoming Neighbors Home Initiative of Tapestry, a Unitarian Universalist Congregation) and The Kennedy Commission.

2.3 PUBLIC MEETING #3
On June 2, 2021, the City Council held its third meeting to discuss and consider the RHNA and General Plan Housing Element Update. The meeting took place at Laguna Woods City Hall at 11:30 a.m. City Council meetings are also televised and closed captioned with reasonable accessibility accommodations available on request. Public comments were accepted in person, in writing, by telephone, or by computer (Zoom). All five members of the City Council participated.

The notice for this meeting was posted on the City’s website and at locations pursuant to Government Code Section 54954.2 on May 28, 2021. In addition, on May 28, 2021, email notification was provided to parties who had requested such notification or contacted City staff previously. As of May 28, 2021, the distribution list consisted of 14 email addresses, including residents and representatives from The Kennedy Commission, Laguna Woods Democratic Club, League of Women Voters of Orange Coast, and Orange County United Way.

The presentation at this meeting included background information on the RHNA process and an overview of the City’s housing needs allocation and revised draft housing needs assessment (revised following the May 19, 2021 City Council meeting). A revised draft housing sites inventory scenario, draft California Department of Housing and Community Development (HCD) Housing Element Sites Inventory Form, and RHNA Frequently Asked Questions document were included in the agenda packet. An electronic spreadsheet version of the HCD Housing Element Sites Inventory Form was posted on the City’s website on May 28, 2021.

At this meeting, three residents spoke during public comments.

The City Council reached consensus for City staff to proceed with the General Plan Housing Element Update incorporating the housing sites scenario presented at this meeting.

2.4 PUBLIC MEETING #4
On July 21, 2021, the City Council held its fourth meeting to discuss and consider the RHNA and General Plan Housing Element Update. The meeting took place at Laguna Woods City Hall at 2 p.m.

The notice for this meeting was posted on the City’s website and at locations pursuant to Government Code Section 54954.2 on July 16, 2021. In addition, on July 16, 2021, email notification was provided to parties who had requested such notification or contacted City staff previously. As of July 16, 2021, ITEM 7.1 - Exhibit A to Attachment A DRAFT

PUBLIC P ARTICIPATION E FFORTS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit E‐4
the distribution list consisted of 15 email addresses, including residents and representatives from The Kennedy Commission, Laguna Woods Democratic Club, League of Women Voters of Orange Coast, and Orange County United Way.

The presentation at this meeting included background information on the RHNA process and an overview of the City’s housing needs allocation, draft General Plan Housing Element, and HCD review process. Drafts of the General Plan Housing Element and HCD Housing Element Sites Inventory Form were included in the agenda packet. An electronic spreadsheet version of the HCD Housing Element Sites Inventory Form was posted on the City’s website on July 16, 2021. No change was made to the HCD Housing Element Sites Inventory Form since it was first made publicly available on May 28, 2021.

The agenda report noted that interested parties would have an opportunity to submit public comments directly to HCD during their review process and provided a link to additional information available on HCD’s website.

At this meeting, one resident spoke during public comments. Written comments were received from one resident.

The City Council voted 4‐1, with then‐Mayor Pro Tem Moore voting no, to authorize the City Manager to submit drafts of the updated General Plan Housing Element and Housing Element Sites Inventory Form to HCD for review, as required by Government Code Section 65585.

2.5 HCD REVIEW PERIOD
The City Manager submitted the draft General Plan Housing Element and HCD Housing Element Sites Inventory Form to HCD for review on July 21, 2021 (HCD records this submittal as July 22, 2021, presumably due to the submittal occurring after regular business hours).

During HCD’s review period, the following entities and individuals submitted comments directly to HCD, which HCD considered in its review pursuant to Government Code Section 65585(c):
 The Kennedy Commission
 YIMBY Law
 Catherine R Van Camp, resident
 Ramesh C Joshi, resident
HCD’s findings were reported to the City in a letter dated September 20, 2021.

2.6 CALIFORNIA ENVIRONMENTAL QUALITY ACT PUBLIC COMMENT PERIOD The draft Initial Study/Negative Declaration (IS/ND) for the General Plan Housing Element Update was made available for a 31‐day public comment period between August 17, 2021 and September 16, 2021. A Notice of Intent to Adopt (NOIA) announcing the public comment period and providing information on how to access the IS/ND was published in the Laguna Woods Globe newspaper on August 12, 2021 and concurrently posted at City Hall and on the City’s website. The NOIA was also mailed to all property ownersin Laguna Woods and within a 1,000‐footradius of the City’s boundaries, as required by the City’s Local California Environmental Quality Act (CEQA) Procedures.

ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 PUBLIC P ARTICIPATION E FFORTS

L AGUNA WOODS , C ALIFORNIA
Exhibit E‐5
The draft IS/ND was directly distributed to the following parties:
 California State Clearinghouse
 California Department of Fish and Wildlife South Coast Region  California Department of Housing and Community Development  California Department of Toxic Substances Control
 California Department of Transportation (Caltrans) District #12  California Regional Water Quality Control Board San Diego Region  California Regional Water Quality Control Board Santa Ana Region  Capistrano Unified School District
 City of Aliso Viejo Planning Services Department
 City of Irvine Community Development Department
 City of Laguna Beach Community & Economic Development Department  City of Laguna Hills Community & Economic Development Department  City of Lake Forest Community Development Department
 El Toro Water District
 Laguna Beach Unified School District
 Native American Heritage Commission
 Orange County Development Services
 Orange County Fire Authority
 Orange County Flood Control District
 Orange County Health Care Agency
 Orange County Transportation Authority
 Orange County Waste & Recycling
 Saddleback Valley Unified School District
 Southern California Air Quality Management District
 Southern California Association of Governments
 Southern California Edison
 Southern California Gas Company
 State Water Resources Control Board
 U.S. Fish & Wildlife Service
On August 17, 2021, the public comment period was extended by one day to September 17, 2021, due to the inadvertent distribution of an incorrect draft of the IS/ND to the parties listed above on August 16, 2021. The correct draft of the IS/ND was distributed on August 17, 2021.

Comment letters were received from the following parties:
 California Department of Housing and Community Development  California Department of Transportation (Caltrans) District 12  City of Irvine
 Gabrieleño Band of Mission Indians – Kizh Nation
 Gabrielino‐Tongva Indian Tribe
 Juaneño Band of Mission Indians, Acjachemen Nation
ITEM 7.1 - Exhibit A to Attachment A DRAFT

PUBLIC P ARTICIPATION E FFORTS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit E‐6
 Orange County Fire Authority
 Saddleback Valley Unified School District
 Southern California Association of Governments
Individual responses were provided to each commenting party via mail and email on January 26, 2022.

The responses included a copy of each party’s comment letter and corresponding responses included as part of the Final IS/ND, as well as notice that the City Council was expected to consider adoption of the Final IS/ND at a public meeting on February 9, 2022.

While the primary purpose of the public comment period was to solicit input on the draft IS/ND as required by CEQA, the draft IS/ND included a project description with site‐specific information consistent with the draft General Plan Housing Element and HCD Housing Element Sites Inventory Form acted upon by the City Council at the public meeting on July 21, 2021. A portion of the comments received during the public comment period applied to the project generally, as opposed to the draft IS/ND specifically.

2.7 REVISED DRAFT PUBLIC REVIEW PERIOD
On January 13, 2022, revised drafts of the General Plan Housing Element and HCD Housing Element SitesInventory Form were posted on the City’s website and made available from the City Clerk’s Office for a 15‐day public review period concluding on January 27, 2022.

A public notice announcing the public review period and providing information on how to access the revised draft documents was published in the Laguna Woods Globe newspaper on January 13, 2022.

The public notice was posted at City Hall and on the City’s website, as well as emailed to parties who had requested such notification or contacted City staff previously, on January 7, 2022. As of January 7, 2022, the distribution list consisted of 15 email addresses, including residents and representatives from The Kennedy Commission, Laguna Woods Democratic Club, League of Women Voters of Orange Coast, and Orange County United Way. The public notice noted the availability of in‐person or virtual meetings with City staff to discuss or ask questions regarding the documents, and provided instructions for individuals who require translation services to communicate with the City. “Clean” and redline versions of the revised draft General Plan Housing Element, and an electronic spreadsheet version of the HCD Housing Element Sites Inventory Form, were posted on the City’s website and made available from City Hall on January 13, 2022.

During the Revised Draft Public Review Period, the following parties submitted comment letters to the City with additional distribution by the authors as noted:
 Catherine “Kate” R. Van Camp [sent to the City, the City Council, and the City Manager, with copies to HCD ([email protected], Paul McDougall, and Marisa Prasse), Rona Henry with Welcoming Neighbors Home, and Cesar Covarrubias, Executive Director of The Kennedy Commission]
This letter expressed general support for the revised draft General Plan Housing Element. The author wrote that, in her opinion, “the requests of the HCD have been met.” ITEM 7.1 - Exhibit A to Attachment A DRAFT
F EBRUARY 2022 PUBLIC P ARTICIPATION E FFORTS

L AGUNA WOODS , C ALIFORNIA
Exhibit E‐7
 Welcoming Neighbors Home [sent by Rona Henry on behalf of herself and Rev. Kent Doss, minister of Tapestry Unitarian Universalist Congregation to the City and the City Council, with copiesto the City Manager, HCD ([email protected], Paul McDougall, and Marisa Prasse), The Kennedy Commission (Cesar Covarrubias, Mildred Perez, Daisy Cruz, and Cynthia Guerra), Kate Van Camp, and Rev. Doss]
This letter expressed general support for the revised draft General Plan Housing Element. The author requested that the City “include a program to implement a Congregational Overlay Zone” and “host a roundtable event with faith organizations located in Laguna Woods to explore the opportunities that exist for them to build.”
Both requests can be considered as part of the rezoning process described in Program H‐1.1.1.

The rezoning process will include the creation of four new overlay zoning districts and the adoption of minimum density and development standards for each. City staff are available to meet with faith organizations or other interested parties, as requested.

2.8 PUBLIC MEETING #5
On February 9, 2022, the City Council held its fifth meeting to discuss and consider the RHNA and General Plan Housing Element Update. The meeting took place at Laguna Woods City Hall at 2 p.m.

The notice for this meeting was posted on the City’s website and at locations pursuant to Government Code Section 54954.2 on February 4, 2022. In addition, on January 20, 2022, email notification was provided to parties who had requested such notification or contacted City staff previously. As of January 20, 2022, the distribution list consisted of 15 email addresses, including residents and representatives from The Kennedy Commission, Laguna Woods Democratic Club, League of Women Voters of Orange Coast, and Orange County United Way.

On February 4, 2022, a second email notification was provided to parties who had requested such notification or contacted City staff previously. The distribution list remained unchanged from the distribution list used for the first notification on January 20, 2022. The second notification included links to the agenda materials and notice that proposed revisions to the January 13, 2022 draft of the General Plan Housing Element were included therein.

Consideration of adoption of the General Plan Housing Element Update and Negative Declaration was additionally noticed as a public hearing. A public notice was published in the Orange County Register newspaper on January 27, 2022. The public notice included a project description adapted from the draft IS/ND and information on how to access the draft General Plan Housing Element and draft ND.

Copies of both public comment letters received during the Revised Draft Public Review Period were including in the agenda packet.

ITEM 7.1 - Exhibit A to Attachment A DRAFT

PUBLIC P ARTICIPATION E FFORTS
L AGUNA WOODS , C ALIFORNIA F EBRUARY 2022
Exhibit E‐8
Drafts of the proposed General Plan Housing Element and HCD Housing Element Sites Inventory Form were included in the agenda packet, as well as redline versions of all revisions made since the drafts acted upon by the City Council at the public meeting on July 21, 2021. An electronic spreadsheet version of the HCD Housing Element Sites Inventory Form was posted on the City’s website on February 4, 2022.

The City Council voted X‐X to authorize the City Manager to adopt the General Plan Housing Element Update and Negative Declaration.
<INFORMATION ON THE VOTE WILL BE ADDED AND THIS NOTE DELETED AFTER THE MEETING.>

2.9 OTHER MEETINGS
On May 17, 2021, the City Manager met via GoToMeeting with Village Management Services, Inc. (Laguna Woods Village) staff (Jeff Parker, CEO and Siobhan Foster, COO) to discuss the RHNA and General Plan Housing Element Update. Subsequent to the meeting, the City Manager forwarded Mr. Parker and Ms. Foster the agenda report for the May 19, 2021 City Council meeting and a RHNA Frequently Asked Questions document.

On May 25, 2021, the City Manager met by telephone with Cesar Covarrubias, Executive Director of The Kennedy Commission, to discuss inclusionary housing and incentives for affordable housing development on non‐vacant sites. Subsequent to the meeting, Mr. Covarrubias forwarded the City Manager information on the City of San Clemente’s Inclusionary Housing In‐Lieu Fee Program Study.

On November 19, 2021, the City Manager met with Kate Van Camp, a resident and housing advocate with Welcoming Neighbors Home, to discuss the General Plan Housing Element Update, review letter from HCD, Ms. Van Camp’s email correspondence to the City Manager dated October 3, 2021 (copied to the City Council, Rona Henry with Welcoming Neighbors Home, and Kimberly Adams with Orange County United Way), and various related topics. On November 20, 2021, Ms. Van Camp sent email correspondence as a follow‐up to the meeting to the City Council with copies to the City Manager, HCD ([email protected] and Marisa Prasse), Rona Henry with Welcoming Neighbors Home, and Cesar Covarrubias, Executive Director of The Kennedy Commission.

Laguna Woods City CouncilFebruary 9, 2022

Laguna Woods City Council
February 9, 2022