Lake Forest City Council
June 3, 2025

AGENDA

LAKE FOREST CITY COUNCIL
Regular Meeting of the City Council
Tuesday, June 3, 2025
Public Session 6:30 p.m.

City Council Chambers, 100 Civic Center Drive, Lake Forest, California NOTICE: Pursuant to Lake Forest Municipal Code Section 2.04.010, Regular Meetings of the City Council are held the First and Third Tuesday of each month at the hour of 5:30 p.m. for Closed Session matters, if required.

The Public Session of the meeting shall commence at 6:30 p.m. or as soon thereafter as possible. Special Meeting times may be held at a different time and date as listed on the Agenda.

AGENDA DOCUMENT REVIEW: The Agenda and staff reports are available on the Internet at https://www.lakeforestca.gov/en/government/meeting-agendas-and-minutes/meeting-agendas and at the City Clerk’s Office, 100 Civic Center Drive, Lake Forest, California, on the Friday before the meeting on Tuesday.

AGENDA DESCRIPTION: The Agenda descriptions are intended to give notice to members of the public of a general summary of items of business to be transacted or discussed. The listed Recommended Action represents staff’s recommendation. The City Council may take any action which it deems to be appropriate on the agenda item and is not limited in any way by the recommended action.

AGENDA ON SOCIAL MEDIA: This meeting will be streamed through Facebook Live. Comments will not be taken via Facebook Live. The City provides the Facebook Live stream as an additional service to the public.

However, the City cannot guarantee that its network and/or the site will be uninterrupted. The City is not responsible for any interrupted service.

SPECIAL NOTICE REGARDING PUBLIC ACCESS TO THE MEETING AND PUBLIC COMMENT:

PUBLIC PARTICIPATION: In addition to attending in person, members of the public may access the meeting live on our website at https://www.lakeforestca.gov/en/government/meeting-agendas-and-minutes/meeting-agendas.

PUBLIC COMMENT PRIOR TO THE MEETING: Members of the public may submit email comments to [email protected]. Email comments will be uploaded to the agenda packet and made part of the official public record of the meeting and will not be read at the meeting. To ensure staff reviews all comments prior to the City Council meeting, please submit email comments no later than 5:00 p.m. the day of the meeting.

PUBLIC COMMENT: Members of the public may provide comments in-person at the meeting. Public comments will no longer be accepted remotely. Those wishing to provide comments in-person at the meeting will be asked to submit a request to speak to the City Clerk. To ensure prompt distribution to the City Council, members of the public wishing to provide written materials to the City Council should do so prior to the start of the meeting or as close thereto as possible, as time will not be taken during the public comment period to distribute written materials to the City Council.

TRANSLATION SERVICE: Interpreters are available by request to members of the public that prefer to make their public comments in Spanish or Chinese. Requests for a translator need to be received by 8:00 a.m. the Monday before the scheduled City Council meeting. Such requests must be received via email at [email protected]
June 3, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 1 Los intérpretes están disponibles previa solicitud para el público que prefiera hacer sus comentarios públicos en español o chino. Las solicitudes de traductor deben recibirse antes de las 8:00 a. m. del lunes anterior a la reunión programada del Concejo Municipal. Dichas solicitudes deben recibirse por correo electrónico a [email protected]
如果大眾願意用西班牙語或中文發表公開評論，我們可應要求提供口譯服務。需要在預定市議會會議之前的周一
上午 8:00 之前收到翻譯請求。此類請求必須透過電子郵件收到：[email protected] Rúguǒ dàzhòng yuànyì yòng xībānyá yǔ huò zhōngwén fābiǎo gōngkāi pínglùn, wǒmen kě yīng yāoqiú tígōng k ǒuyì fúwù. Xūyào zài yùdìng shì yìhuì huìyì zhīqián de zhōuyī shàngwǔ 8:00 Zhīqián shōu dào fānyì qǐngqiú. Cǐ l èi qǐngqiú bìxū tòuguò diànzǐ yóujiàn shōu dào: [email protected] CALL TO ORDER: 6:30 p.m.

Council Members: Doug Cirbo
Mark Tettemer
Benjamin Yu
Mayor Pro Tem: Robert Pequeño
Mayor: Scott Voigts
City Manager: Debra Rose
City Attorney: Matthew E. Richardson
Acting City Clerk: Thy Merritt
PUBLIC SESSION: 6:30 p.m.

PUBLIC SESSION: At this time, the City Council will convene to consider public matters. Those wishing to address the City Council may submit a completed “Request to Speak” form to the City Clerk prior to City Council action.

INVOCATION: The Invocation will be provided by a representative of the Church of Jesus Christ of Latter-day Saints.

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country to be led by Girl Scouts of Lake Forest Unit #602.

PRESENTATIONS (Item No. 1)

1. RECOGNITION OF THE 50TH ANNIVERSARY OF THE AMERICAN
YOUTH SOCCER ORGANIZATION ("AYSO")
June 3, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 2 RECOMMENDED ACTION: Receive Presentation.

PUBLIC COMMENTS
Members of the public can submit an e-comment to [email protected] . E-comments will not be read at the meeting.

Members of the public may also provide comments in-person at the meeting. Those wishing to provide comments in-person at the meeting will be asked to submit a request to speak to the City Clerk.

CONSENT CALENDAR (Item Nos. 2 – 6)
All matters listed under the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request specific items be removed from the Consent Calendar for separate action.

2. MOTION TO WAIVE READING OF RESOLUTIONS AND ORDINANCES RECOMMENDED ACTION: Said Ordinances and Resolutions which appear on the public agenda shall be determined to have been read by title and further reading waived.

3. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON MAY 20, 2025
RECOMMENDED ACTION: Approve as submitted.

4. INDEPENDENCE DAY PARADE ROAD CLOSURES AND RELATED
ACTIVITIES ON JULY 4, 2025
RECOMMENDED ACTION: 1. Approve road closures of race and parade route from 5:00 a.m. - 2:00 p.m. on July 4, 2025. 2. Direct Public Works to provide required traffic control devices and crews for road closures. 3.

Direct the Orange County Sheriff’s Department to staff road closures and patrol events. 4. Approve additional street sweeping of the route.

5. NOTICE OF COMPLETION FOR VIDEO CONFERENCE SYSTEM
UPGRADE PROJECT (25F02)
June 3, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 3 RECOMMENDED ACTION: 1. Find that Golden Star Technology, Inc. has completed construction of the Video Conference System Upgrade Project (25F02). 2. Approve the Notice of Completion and authorize the mayor to execute the document on behalf of the City. 3. Authorize City Clerk to submit Notice of Completion for recordation to the Office of the County Recorder of Orange County within fifteen days of the City Council approval, as required by Section 9204 of the California Civil Code. 4. Authorize staff to release any unencumbered retention in accordance with California law.

6. NOTICE OF COMPLETION FOR PITTSFORD PARK SHADE
STRUCTURE RENOVATION (PW 2023-09)
RECOMMENDED ACTION: 1. Find that Williamson Development Group, Inc., has completed construction of Pittsford Park Shade Structure (PW 2023-09). 2. Approve the Notice of Completion and authorize the Mayor to execute the document on behalf of the City. 3. Authorize the City Clerk to submit Notice of Completion for recordation to the Office of the County Recorder of Orange County within fifteen days of the City Council approval, as required by Section 9204 of the California Civil Code. 4. Authorize staff to release any unencumbered retention in accordance with California law.

PUBLIC HEARING(S) (Item Nos. 7 – 9)
Public Hearings are scheduled for a time certain of 6:30 p.m. or as soon thereafter as possible. City Council, when considering the matter scheduled for hearing, will take the following actions: 1. Open the Public Hearing. 2. Receive staff report. 3. Accept public testimony. 4. City Council comments and questions. 5. Close the Public Hearing and take appropriate action.

7. ADOPTION OF THE 2025 LOCAL RESPONSIBILITY AREA FIRE

HAZARD SEVERITY ZONES MAP
RECOMMENDED ACTION: Introduce for first reading an Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF LAKE FOREST,

CALIFORNIA DESIGNATING FIRE HAZARD SEVERITY ZONES WITHIN

THE CITY OF LAKE FOREST AS REQUIRED BY GOVERNMENT CODE
§ 51179, BASED ON MAPS PROVIDED BY THE CALIFORNIA

DEPARTMENT OF FORESTRY AND FIRE PROTECTION, REPEALING
ORDINANCE NO. 239, AND DETERMINING THE ORDINANCE TO BE
EXEMPT FROM CEQA.

June 3, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 4

8. LAKE FOREST MUNICIPAL CODE AMENDMENTS RELATED TO CYBER

CAFES AND THRIFT STORES
RECOMMENDED ACTION: Introduce for first reading an Ordinance Entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LAKE FOREST, CALIFORNIA, AMENDING VARIOUS SECTIONS OF THE

LAKE FOREST MUNICIPAL CODE RELATED TO THE REGULATION OF CYBER CAFÉS AND THRIFT STORES.

9. CITY WORKFORCE VACANCIES, RECRUITMENT AND RETENTION
PRESENTATION (AB 2561)
RECOMMENDED ACTION: Conduct a public hearing regarding AB 2561 to receive and file a presentation of the status of vacancies and recruitment and retention Efforts at the City of Lake Forest.

DISCUSSION/ACTION ITEMS (Item Nos. 10 – 13)
The following matters are for City Council consideration/discussion/action. Members of the public may have the opportunity to address these items if they wish to do so. Please complete the Request to Speak form and give to the City Clerk.

10. SEVENTH AMENDMENT TO CITY MANAGER EMPLOYMENT

AGREEMENT
RECOMMENDED ACTION: Approve the Seventh Amendment to City Manager Employment Agreement and authorize the Mayor to execute and the City Clerk to attest the document.

11. CLASSIFICATION PLAN AND SALARY SCHEDULE FOR FISCAL YEAR 2025- 2026 AND AMENDMENT OF THE PERSONNEL RULES AND

REGULATIONS
RECOMMENDED ACTION: 1. Adopt a Resolution entitled: A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST,

CALIFORNIA, ADOPTING A REVISED CLASSIFICATION PLAN AND
COMPENSATION SCHEDULE. 2. Adopt a Resolution entitled:

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST,

CALIFORNIA ADOPTING AN AMENDMENT OF THE PERSONNEL
June 3, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 5 RULES AND REGULATIONS.

12. 2025-2027 OPERATING BUDGET AND 2025-2032 MASTER FINANCIAL

PLAN AND FINANCIAL FORECAST
RECOMMENDED ACTION: Adopt a resolution entitled: A RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING A BUDGET FOR 2025-2027; APPROPRIATING FUNDS
FOR FISCAL YEAR 2025-26 ONLY AND AUTHORIZING CERTAIN
ACTIONS WITH APPROPRIATIONS; AND ADOPTING ALL OF THE
FOLLOWING: THE 2025-2032 STRATEGIC BUSINESS PLAN, THE 2025- 2032 CAPITAL IMPROVEMENT PLAN, THE 2025 GENERAL FUND
RESERVE RISK ANALYSIS, THE 2025-2032 MASTER FINANCIAL PLAN

AND FINANCIAL FORECAST, AND UPDATING THE FINANCIAL
MANAGEMENT AND BUDGETARY POLICY.

13. CALIFORNIA CONSITUTION ARTICLE XIIIB APPROPRIATIONS LIMIT RECOMMENDED ACTION: Adopt a Resolution entitled: A RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025-26 IN THE AMOUNT OF $178,845,165.

CITY MANAGER'S REPORT
At this time, the City Manager may comment on agenda and non-agenda items; and report on items of interest to the City Council and community.

June 3, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 6

CITY COUNCIL COMMENTS
At this time, City Council Members may comment on agenda or non-agenda matters. No discussion may take place on any item not appearing on the posted agenda. Council Members may ask a question for clarification, respond to statements made or questions posed by the public, make a brief announcement, or make a brief report on his or her own activities. In addition, the City Council may refer to staff or other resources for factual information, request staff to report back at a subsequent meeting or direct staff to place a matter of business on a future agenda. No action may be taken on non-agenda matters unless authorized by law (Government Code Section 54954.2).

Council Member Cirbo:

Council Member Tettemer:

Council Member Yu:

Mayor Pro Tem Pequeño:

Mayor Voigts:

ADJOURNMENT
In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this Meeting, including auxiliary aids or services, you should contact the Office of the City Clerk at (949) 461-3400.

Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and agenda back-up materials can be obtained from the Office of the City Clerk on the Friday prior to the City Council meeting. Copies of all Agendas, Staff Reports and Supporting Materials can also be found on the City’s website – https://www.lakeforestca.gov/129/Agendas.

Agenda and agenda packets, if requested, will be made available in an appropriate alternative format to persons with a disability as required by the Americans With Disabilities Act. Copies of the agenda are provided at no cost and agenda back-up materials are available at the per page copy cost.

The City of Lake Forest mailing address is City Council Chambers, 100 Civic Center Drive, Lake Forest, California.

Phone: (949) 461-3400. FAX (949) 461-3511
CERTIFICATION: I, Thy Merritt, Acting City Clerk of the City of Lake Forest, California, hereby certify that the foregoing agenda was posted for public review at City Hall on May 29, 2025.

Thy Merritt
Acting City Clerk
June 3, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 7

CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: Management Services
SUBJECT:

RECOGNITION OF THE 50TH ANNIVERSARY OF THE AMERICAN YOUTH SOCCER ORGANIZATION ("AYSO")
RECOMMENDED ACTION(S):

Receive Presentation.

EXECUTIVE SUMMARY:

At the April 1, 2025, City Council meeting, Council Member Cirbo requested and received consensus to recognize the 50th Anniversary of the AYSO Youth Soccer Organization (Attachment 1).

The American Youth Soccer Organization was founded in 1964 with the mission to provide a positive soccer experience for all children, regardless of background, and to foster a sense of community and teamwork. For over 50 years, AYSO volunteers have dedicated their time and have worked diligently to contribute to the success of the organization.

AYSO has grown to become one of the largest and most respected youth soccer organizations in the country, with a network of volunteers, players, coaches, and families working together to offer opportunities for children to play a popular sport. AYSO has created an environment that emphasizes sportsmanship, inclusion, and fair play, ensuring that every player and coach positively impacts the lives of countless children and families in the Lake Forest community.

By presenting the attached Certificate of Recognition, the City Council recognizes, honors and celebrates the American Youth Soccer Organization for 50 years of dedication, service, and excellence in promoting youth soccer, fostering teamwork, and making an impact on the lives of young people throughout our community and beyond (Attachment 2).

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

Item: 1
8 ATTACHMENTS:

1. Minute Excerpt from April 1, 2025, City Council Meeting

2. Certificate of Recognition.

Initiated By: Laura Hunter, Recreation Manager
Submitted By: Laura Hunter, Recreation Manager
Approved By: Debra Rose, City Manager
Item: 1
9 ATTACHMENT 1
Item: 1
10 MINUTE EXCERPT

LAKE FOREST REGULAR CITY COUNCIL MEETING
April 1, 2025
______________________________________________________________________ CITY COUNCIL COMMENTS:

Council Member Cirbo:

Council Member Cirbo requested consensus to
recognize the AYSO 50th Anniversary with a
certificate. He received consensus from Mayor
Voigts and Council Member Yu.

Item: 1
11 ATTACHMENT 2
Item: 1
12 MARK TETTEMER

COUNCIL MEMBER

BENJAMIN YU

COUNCIL MEMBER

CERTIFICATE OF RECOGNITION

THE LAKE FOREST CITY COUNCIL

HEREBY RECOGNIZES

AMERICAN YOUTH SOCCER

ORGANIZATION

The City Council and City of Lake Forest recognize AYSO for 50 years of dedication, hard work, and commitment of volunteers, parents, coaches, referees and supporters who have contributed to the success of the organization.

JUNE 3, 2025

SCOTT VOIGTS
MAYOR

ROBERT PEQUEÑO

MAYOR PRO TEM

DOUG CIRBO

COUNCIL MEMBER
Item: 1
13 CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: City Clerk
SUBJECT:

MOTION TO WAIVE READING OF RESOLUTIONS AND ORDINANCES
RECOMMENDED ACTION(S):

Said Ordinances and Resolutions which appear on the public agenda shall be determined to have been read by title and further reading waived.

EXECUTIVE SUMMARY:

California Government Code 36934 allows titles of ordinances and resolutions to be waived.

FISCAL IMPACT:

There is minimal fiscal impact associated with the recommended action.

ATTACHMENTS:

None.

Submitted By: Thy Merritt, Acting City Clerk
Approved By: Debra Rose, City Manager
14 Item: 2
14 MINUTES OF A REGULAR MEETING

OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST
The regular meeting of the City Council of the City of Lake Forest held Tuesday, May 20, 2025, at the Lake Forest City Council Chambers, 100 Civic Center Drive, Lake Forest, California, was called to order at 5:30 p.m. with Mayor Voigts absent.

ROLL CALL:

Council Members:

Doug Cirbo
Mark Tettemer
Benjamin Yu
Mayor Pro Tem: Robert Pequeño
Mayor: Scott Voigts (arrived 6:30 p.m.)

City Manager: Debra Rose
City Attorney: Matthew E. Richardson
Acting City Clerk: Thy Merritt

CLOSED SESSION

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
PURSUANT TO GOVERNMENT CODE SECTION 54957(B)(1)
TITLE: CITY ATTORNEY
ACTION: Closed session was conducted.

INVOCATION: The Invocation was provided by Chaplain Serena Cummins, Orange County Sheriff’s Department.

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country was led by Brownie Troop #2523.

CLOSED SESSION REPORT: City Manager Rose had no action to report.

REPORT FROM STUDENT LIAISON: A report from Maya Lowrey, Student Liaison from El Toro High School, was received.

PRESENTATIONS: (Item Nos. 2 – 5)
MOTION: It was moved by Council Member Yu, seconded by Mayor Pro Tem Pequeño, to approve Presentation Item Nos. 2 – 5. The motion was carried by a vote of 5-0.

Item: 3
15 May 20, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 2 of 6

2. PROCLAMATION DECLARING THE MONTH OF MAY AS ASIAN AMERICAN

AND PACIFIC ISLANDER HERITAGE MONTH
City Manager Rose introduced this item and invited Acting City Clerk Merritt to provide a presentation. Reed Buck offered public comment in support of Asian American and Pacific Islander Heritage Month and Jewish American Heritage Month proclamations.

ACTION: The Proclamation designating the month of May as Asian American and Pacific Islander Heritage Month was approved.

3. PROCLAMATION DECLARING THE MONTH OF MAY AS JEWISH AMERICAN

HERITAGE MONTH
City Manager Rose introduced this item and invited Acting City Clerk Merritt to provide a presentation. No public comment was offered.

ACTION: The Proclamation designating the month of May as Jewish American Heritage Month was approved.

5. RECOGNITION OF DIRECTOR OF PUBLIC WORKS/CITY ENGINEER

THOMAS WHEELER FOR THIRTEEN YEARS OF SERVICE TO THE CITY OF

LAKE FOREST
City Manager Rose introduced this item and provided a presentation. Director of Public Works Wheeler offered remarks. No public comment was offered.

ACTION: The Director of Public Works/City Engineer was recognized for his thirteen years of service to the City of Lake Forest.

4. LAKE FOREST DRIVE TRAFFIC SIGNAL SYNCHRONIZATION PROJECT - UPDATE
City Manager Rose introduced this item and invited Traffic Engineering Manager Tran to provide a presentation. No public comment was offered.

ACTION: The Presentation was received.

PUBLIC COMMENTS:

Terry Andersen, Board Member and Treasurer for the Boys and Girls Club of Laguna Beach, apologized for lack of communication regarding their application for Community Development Block Grant funds and provided an update on programs offered in Lake Forest by the Boys and Girls Club.

Item: 3
16 May 20, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 3 of 6 Pam Estes, CEO for the Boys and Girls Club of Laguna Beach, apologized for lack of communication regarding their application for Community Development Block Grant funds and provided an update on programs offered in Lake Forest by the Boys and Girls Club.

Reed Buck expressed opposition to a decrease in Community Development Block Grant funds to the Boys and Girls Club.

Morgan Sibley expressed opposition to a decrease in Community Development Block Grant funds to the Boys and Girls Club.

Lindsay Buck expressed opposition to a decrease in Community Development Block Grant funds to the Boys and Girls Club.

Andrea Alexander expressed opposition to a decrease in Community Development Block Grant funds to the Boys and Girls Club.

Joyce Ardo expressed opposition to a decrease in Community Development Block Grant funds to the Boys and Girls Club.

CONSENT CALENDAR: (Item Nos. 6 – 12)
STATEMENT READ INTO THE RECORD:

Mayor Pro Tem Voigts: There is an agreement on the Consent Calendar with the County of Orange for waste disposal services. I am an employee of the County of Orange, but I do not work for the department that generated the agreement. Because the County of Orange is a public agency and because I do not work for the department in question, I have determined that I have a non-interest in the agreement and will vote on this item.

MOTION: It was moved by Mayor Pro Tem Pequeño, seconded by Council Member Yu, to approve Consent Calendar Item Nos. 6 – 12. The motion was carried by a vote of 5-0.

6. MOTION TO WAIVE READING OF RESOLUTIONS AND ORDINANCES ACTION: Said Ordinances and Resolutions which appeared on the public agenda were determined to have been read by title and further reading was waived.

7. MINUTES OF THE BUDGET WORKSHOP OF THE CITY COUNCIL HELD ON APRIL 29, 2025
ACTION: The minutes were approved as submitted.

8. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON MAY 6, 2025
Item: 3
17 May 20, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 4 of 6 ACTION: The minutes were approved as submitted.

9. PROCLAMATION DESIGNATING MAY 18-24, 2025, AS "NATIONAL PUBLIC WORKS WEEK"
ACTION: A Proclamation designating May 18-24, 2025, as National Public Works Week in the City of Lake Forest was approved.

10. NOISE ORDINANCE UPDATE
ACTION: A second reading was conducted and an Ordinance entitled: AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING CHAPTER 11.16 OF THE LAKE FOREST

MUNICIPAL CODE RELATING TO NOISE CONTROL AND FINDING SAID

ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT was adopted.

11. FIRST AMENDMENT TO AGREEMENT WITH DATA TICKET, INC. FOR

PERMIT PARKING SOFTWARE
ACTION: 1. The First Amendment to the Parking Permit and Citation Processing Program with Data Ticket, Inc. for administration of a parking permit processing program and parking citation processing services was approved. 2. The Mayor was authorized to sign, and the City Clerk to attest the First Amendment with Data Ticket, Inc., substantially in the form attached.

12. SECOND AMENDMENT TO THE 2009 WASTE DISPOSAL AGREEMENT

WITH THE COUNTY OF ORANGE
ACTION: 1. A Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING THE SECOND AMENDMENT TO THE 2009 WASTE DISPOSAL AGREEMENT WITH THE COUNTY OF ORANGE was adopted. 2. The Mayor was authorized to sign, and the City Clerk to attest, the Second Amendment substantially in the form attached.

DISCUSSION/ACTION ITEMS: (Item Nos. 13 – 15)
STATEMENT READ INTO THE RECORD:

Mayor Pro Tem Voigts: I am an employee of the County of Orange, but I do not work for the department that generated the law enforcement agreement. Because the County of Orange is a public agency and because I do not work for the department in question, I have determined that I have a non-interest in the agreement and will vote on this item.

Item: 3
18 May 20, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 5 of 6

13. LAW ENFORCEMENT CONTRACT WITH THE COUNTY OF ORANGE FOR FISCAL YEAR 2025-26
City Manager Rose introduced this item and invited Deputy City Manager McGovern to provide a presentation. No public comment was offered. Council questions were asked and answered by staff and Orange County Sheriff’s Department Captain and Chief of Lake Forest Police Services David Pultz.

MOTION: It was moved by Mayor Pro Tem Pequeño, seconded by Council Member Tettemer, to: Approve and authorize the Mayor to sign the Agreement with the County of Orange for Law Enforcement Services for Fiscal Year 2025-

26. The motion was carried by a vote of 5-0.

14. HOLIDAY LIGHTING DISPLAY UPDATE
City Manager Rose called for a 5-minute recess. Mayor Voigts left the meeting at 7:56 p.m. The meeting reconvened from recess at 8:00 p.m. with Mayor Pro Tem Pequeño presiding.

City Manager Rose introduced this item and invited Recreation Manager Blethen to provide a presentation. No public comment was offered. Council questions were asked and answered.

MOTION: It was moved by Council Member Cirbo, seconded by Council Member Tettemer, to: 1. Receive and file a presentation from staff proposing garland additions for the 2025 Holiday Lighting Display was received and filed.

2. Direct staff return at a subsequent City Council meeting with contract documents necessary to effectuate the addition of garland displays for the 2025 Holiday Lighting Display. The motion was carried by a vote of 4-0 with Mayor Voigts absent.

15. AWARD CONSTRUCTION CONTRACT FOR THE HEROES PARK FIELDS RENOVATION PROJECT (2410)
City Manager Rose introduced this item and invited Maintenance Manager McConaha to provide a presentation. George Apkarian provided public comment in favor of the contract. Council questions were asked and answered.

MOTION: It was moved by Mayor Pro Tem Pequeño, seconded by Council Member Tettemer, to: 1. Approve contract documents for construction of the Heroes Park Fields Renovation Project (2410). 2. Adopt a Resolution entitled: A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE 2023-2030 CAPITAL IMPROVEMENT PLAN; AMENDING APPROPRIATIONS FOR FISCAL YEAR 2024-25. 3. Find the apparent low bidder, Southern California Landscape, to be non-responsive for failure to submit the required bid bond, and award the contract to the next lowest Item: 3
19 May 20, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 6 of 6 responsive and responsible bidder 4. Award a contract in the amount of $839,759.60 to Marina Landscape, Inc. 5. Reject all other bids received and authorize return of the bid bonds upon receipt of the executed contract documents from Marina Landscape, Inc. 6. Authorize the Mayor to sign, and the City Clerk to attest the contract with Marina Landscape, Inc. The motion was carried by a vote of 4-0 with Mayor Voigts absent.

CITY MANAGER'S REPORT: City Manager Rose had nothing further to report.

CITY COUNCIL COMMENTS:

Council Member Cirbo: Council Member Cirbo acknowledged the sacrifice of military personnel who died in service and invited
people to attend the Memorial Day ceremony at El
Toro Memorial Park.

Council Member Tettemer: Council Member Tettemer reported on his attendance at Senator Choi’s Open House and a tour of the
Orange County Animal Care Center.

Council Member Yu: Council Member Yu acknowledged the sacrifice of military personnel who died in service.

Mayor Pro Tem Pequeño: Mayor Pro Tem Pequeño reported on his attendance at Senator Choi’s Open House and a tour of the
Orange County Animal Care Center. He
acknowledged the sacrifice of military personnel who
died in service and thanked staff for all their hard
work.

ADJOURNMENT: The Regular Meeting of the City Council was adjourned at 8:23 p.m.

Respectfully submitted:

APPROVED:

THY MERRITT ROBERT PEQUEÑO

ACTING CITY CLERK MAYOR PRO TEM
Item: 3
20 CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: Management Services
SUBJECT:

INDEPENDENCE DAY PARADE ROAD CLOSURES AND RELATED
ACTIVITIES ON JULY 4, 2025
RECOMMENDED ACTION(S):

1. Approve road closures of race and parade route from 5:00 a.m. - 2:00 p.m. on July 4, 2025.

2. Direct Public Works to provide required traffic control devices and crews for road closures.

3. Direct the Orange County Sheriff’s Department to staff road closures and patrol events.

4. Approve additional street sweeping of the route.

EXECUTIVE SUMMARY:

The City’s 32nd Annual Fourth of July Parade Celebration (“Parade”) is scheduled to take place on Friday, July 4, 2025. The Parade Committee, comprised of community volunteers and staff, is coordinating the celebration. The event will begin with a pancake breakfast hosted by the Lake Forest Kiwanis Club near the El Toro High School Administration Building at 7:00 a.m. The 5K/1K Run/Walk put on by the El Toro Parent-Student-Teacher Organization (“PTSO”) will also commence at 7:00 a.m. (Attachment 1). The Parade will begin at 9:30 a.m. at El Toro High School and is routed along Toledo Lane, Lake Forest Boulevard, and Serrano Court. Staff requests City Council approval of necessary street closures and required support services (Attachment 2). The above recommended actions would authorize the necessary related logistical requirements for the parade.

FISCAL IMPACT:

The proposed 2025-2027 Operating Budget includes sufficient funding to cover the costs of the recommended action.

Item: 4
21 ATTACHMENTS:

1. 5K/1K Race Route

2. Fourth of July Parade Route Including Road Closures and Signage Initiated By: Laura Hunter, Recreation Manager
Submitted By: Laura Hunter, Recreation Manager
Approved By: Debra Rose, City Manager
Item: 4
22 Attachment 1
Item: 4
23 5K/1K Race Route
1K Race
5K Race
Item: 4
24 Attachment 2
Item: 4
25 The City of Lake Forest Fourth of July - Parade Route A
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R
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Road Serano
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24 F
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1 Parade entrants
A Signage shall continue on to
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High School C Park Place
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Parking (Toledo & Killy)13 24Judging
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9 General
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StagingAmbulance
Location C
11 8Car Club
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14 Ridge Route
& JeronimoD
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& Jeronimo
Item: 4
26 CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: Information Technology
SUBJECT:

NOTICE OF COMPLETION FOR VIDEO CONFERENCE SYSTEM UPGRADE PROJECT (25F02)
RECOMMENDED ACTION(S):

1. Find that Golden Star Technology, Inc. has completed construction of the Video Conference System Upgrade Project (25F02).

2. Approve the Notice of Completion and authorize the Mayor to execute the document on behalf of the City.

3. Authorize City Clerk to submit Notice of Completion for recordation to the Office of the County Recorder of Orange County within fifteen days of the City Council approval, as required by Section 9204 of the California Civil Code.

4. Authorize staff to release any unencumbered retention in accordance with California law.

EXECUTIVE SUMMARY:

On June 18, 2024, the City Council awarded a contract to Golden Star Technology, Inc. in the amount of $283,215.15 for the Video Conference Upgrade Project (25F02). The project involved upgrading the video conferencing systems in thirteen (13) conference rooms located in the f Lake Forest Civic Center to enhance communication capabilities across City operations. A project kick-off meeting was held on October 11, 2024.

Contract Change Order No. 1, dated February 27, 2025, was issued to accommodate necessary adjustments and additions to equipment and integration work not included in the original scope. The change order amounted to $20,092.73, bringing the total project cost to $303,307.88.

Final inspection has confirmed that Golden Star Technology, Inc. has completed the contract scope of work and addressed all punch list items. The progress payment has been processed, and the Notice of Completion is now ready to be Item: 5
27 executed by the City and recorded with the County of Orange. Staff recommend the City Council approve the Notice of Completion (Attachment 1) and direct staff to release any unencumbered retention in accordance with California law.

Sufficient funding exists in the 2023-30 Capital Improvement Projects Budget to cover the total project cost.

BACKGROUND:

At the June 18, 2024, City Council meeting, a contract in the amount of $283,215.15 was awarded to Golden Star Technology, Inc. for the Video Conference Upgrade Project (25F02). The project involved upgrading the video conferencing systems in thirteen (13) conference rooms throughout the Lake Forest Civic Center, improving audiovisual infrastructure and enhancing hybrid meeting functionality.

DISCUSSION:

Staff collaborated closely with Golden Star Technology, Inc. throughout the system upgrade implementation to ensure quality execution, minimal disruption to City operations, and alignment with project objectives. To address unforeseen technical challenges and incorporate additional integration services that enhance overall system performance, Contract Change Order No. 1 was issued in the amount of $20,092.73. This change order reflects necessary modifications to system configurations and ensured the system meets operational needs. As a result, the revised total contract amount is $303,307.88.

The Notice of Completion establishes the legal date that limits the time subcontractors and material suppliers may file stop notices or liens against the project. Following City Council approval, the City Clerk will submit the Notice of Completion to the Orange County Clerk Recorder within fifteen (15) days, as required by Section 9204 of the California Civil Code. Upon recordation, a 30-day lien period begins, after which the City may release the retention payment provided no stop notices are received.

Staff recommend City Council approve the Notice of Completion and the release of retention thirty (30) days following recordation, in accordance with California law.

FISCAL IMPACT:

The recommended action finds the project complete and authorizes staff to release any unencumbered retention funds. Sufficient funding is available in the Item: 5
28 2023-30 Capital Improvement Projects Budget to cover the final project cost of $303,307.88.

ATTACHMENTS:

1. Notice of Completion for the Video Conference Upgrade Project (25F02) Initiated By: Joanne Jin, Information Technology Manager Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager
Item: 5
29 Attachment 1
Item: 5
30 RECORDING REQUESTED BY
AND MAIL TO:

Thy Merritt
Acting City Clerk
City of Lake Forest
100 Civic Center Dr
Lake Forest, California, 92630
Fee Exempt – Gov’t Code §27383

NOTICE OF COMPLETION
(C.C.C. 9204 - PUBLIC WORKS)
NOTICE IS HEREBY GIVEN THAT:

1. The City of Lake Forest located at 100 Civic Center Drive, Lake Forest, California, 92630 has completed a public work of improvement described as the Video Conference System Upgrade Project(25F02) and accepted by the awarding authority upon the date hereof.

2. Date of completion: April 15, 2025.

3. Description of work performed: Upgrade the video conference system in 13 conference rooms in the City of Lake Forest Civic Center.

4. The City’s interest in the property in which the public work was completed is:  Fee X Easement  Lease.

5. The real property upon which said public work was performed in the City of Lake Forest is: City of Lake Forest Civic Center

6. The contractor was: Golden Star Technology, Inc.

Dated
Scott Voigts, Mayor
City of Lake Forest
ATTEST:

Thy Merritt, Acting City Clerk

VERIFICATION
I, the undersigned, say: I am the Mayor of the City of Lake Forest, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof, the same is true of my knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed at Lake Forest, California, on this day of , 2025.

ATTEST:

Scott Voigts, Mayor
City of Lake Forest
Thy Merritt, Acting City Clerk
Item: 5
31 CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: Public Works
SUBJECT:

NOTICE OF COMPLETION FOR PITTSFORD PARK SHADE STRUCTURE RENOVATION (PW 2023-09)
RECOMMENDED ACTION(S):

1. Find that Williamson Development Group, Inc., has completed construction of Pittsford Park Shade Structure (PW 2023-09).

2. Approve the Notice of Completion and authorize the Mayor to execute the document on behalf of the City.

3. Authorize the City Clerk to submit Notice of Completion for recordation to the Office of the County Recorder of Orange County within fifteen days of the City Council approval, as required by Section 9204 of the California Civil Code.

4. Authorize staff to release any unencumbered retention in accordance with California law.

EXECUTIVE SUMMARY:

At the May 7, 2024, City Council meeting, the City Council awarded a construction contract to Williamson Development Group, Inc. (”Williamson”) for the Pittsford Park Shade Structure project in the amount of $221,000.

The Pittsford Park Shade Structure Renovation Project repaired and renewed the picnic area shade shelter at Pittsford Park. The shade structure has structural damage caused by weather and termites, which required the replacement of the beams holding the roof structure. The Project construction began on November 8, 2024. The City Manager approved one contract change order which added $15,321 in compensation to the construction contract with Williamson. The Project was substantially completed on March 14, 2025, with a total construction cost of $236,321.

After final inspection of the Project, determination of final quantities, and progress payment processing, the Project is now ready for the Notice of Completion. Staff is requesting the City Council approve the Notice of Completion (Attachment) and direct staff to release any unencumbered retention in accordance with Item: 6
32 California law. Sufficient funds exist in the Capital Improvement Plan for the project to cover the costs of the recommended action.

BACKGROUND:

The picnic area shade shelter at Pittsford Park is an original structure from the late 1980s/early 1990’s. The structure showed signs of age, termite impacts, and weather damage that compromised the large wood crossmembers that support wood and metal canopy covers. The Project replaced all the primary support beams, requiring hydraulic lifting of the large canopy roof and lowering the rehabilitated roof back onto seismically secure pilasters. In addition, the structure was repainted, and new lighting installed.

The City Manager authorized one Contract Change Order, which added $15,321 in compensation to the contract with Williamson. The change order was for facia board and painting of the structure not listed within the original project specifications.

DISCUSSION:

Williamson substantially completed construction activities on March 14, 2024.

The City’s construction manager conducted a final inspection to ensure the Project’s completion in accordance with the contract requirements. The Notice of Completion establishes a date that limits the time subcontractors and material vendors may file stop notices or liens against the project. Following City Council approval, the City Clerk must submit the Notice of Completion to the Clerk Recorder of Orange County within 15 days of the City Council’s action, as required by Section 9204 of the California Civil Code.

Following approval and recordation, the Notice of Completion establishes a 30- day period for subcontractors and material vendors to file stop payment notices and initiates the start date for the warranty period. Since the work has been completed and accepted by the City, staff recommend the City Council approve the Notice of Completion and release the retention payment 30 days after recording the Notice of Completion, providing there are no stop notices for the project on file with the City. Approving the recommended action would find the project complete, authorize the Mayor and City Clerk to sign the Notice of Completion, and allow staff to release any unencumbered retention in accordance with California law.

Item: 6
33 FISCAL IMPACT:

The fiscal impact of the recommended action would allow staff to release any unencumbered retention in accordance with California law. The total contract cost of the Project would be $236,321. Sufficient funding exists in the 2023-25 Capital Improvement Projects Budget to cover the costs of the recommended action.

ATTACHMENTS:

Notice of Completion for Pittsford Park Shade Structure Renovation (PW2023- 09)
Initiated By: Michael McConaha, Public Works Maintenance Manager Submitted By: Thomas Wheeler, P.E., Director of Public Works/City Engineer Approved By: Debra Rose, City Manager
Item: 6
34 Attachment 1
Item: 6
35 RECORDING REQUESTED BY
AND MAIL TO:

City Clerk
City of Lake Forest
100 Civic Center Drive
Lake Forest, California, 92630
Fee Exempt – Gov’t Code §27383

NOTICE OF COMPLETION
(C.C.C. 9204 - PUBLIC WORKS)
NOTICE IS HEREBY GIVEN THAT:

1. The City of Lake Forest located at 100 Civic Center Drive, Lake Forest, California, 92630, has completed a public work of improvement described as Pittsford Park Shade Structure Renovation (PW 2023-09) and accepted by the awarding authority upon the date hereof.

2. Date of completion: March 14, 2025

3. Description of work performed: Pittsford Park Shade Structure Renovation (PW 2023-09).

4. The City’s interest in the property in which the public work was completed is: X Fee  Easement  Lease.

5. The real property upon which said public work was performed in the City of Lake Forest is: 21701 Pittsford Drive, Lake Forest, CA 92630.

6. The contractor was: Williamson Development Group, Inc.

Dated
Scott Voigts, Mayor
ATTEST:

Thy Merritt, Acting City Clerk

VERIFICATION
I, the undersigned, say: I am the Mayor of the City of Lake Forest, the declarant of the foregoing Notice of Completion; I have read said Notice of Completion and know the contents thereof, the same is true of my knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed at Lake Forest, California, on this day of , 2025.

Scott Voigts, Mayor
ATTEST:

Thy Merritt, Acting City Clerk
Item: 6
36 CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/03/2025
DEPARTMENT: Community Development
SUBJECT:

ADOPTION OF THE 2025 LOCAL RESPONSIBILITY AREA FIRE HAZARD

SEVERITY ZONES MAP
RECOMMENDED ACTION(S):

Introduce for first reading an Ordinance entitled: AN ORDINANCE OF THE CITY

COUNCIL OF LAKE FOREST, CALIFORNIA DESIGNATING FIRE HAZARD

SEVERITY ZONES WITHIN THE CITY OF LAKE FOREST AS REQUIRED BY GOVERNMENT CODE § 51179, BASED ON MAPS PROVIDED BY THE

CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION,
REPEALING ORDINANCE NO. 239, AND DETERMINING THE ORDINANCE

TO BE EXEMPT FROM CEQA
EXECUTIVE SUMMARY:

In compliance with California Government Code §§ 51178 and 51179, as amended by Senate Bill 63 (2021) and Assembly Bill 211 (2022), the City must adopt an ordinance formally designating Moderate, High, and Very High Fire Hazard Severity Zones (“FHSZs”) as mapped by the State Fire Marshal within its Local Responsibility Area (“LRA”). This action is a critical step in aligning the City’s planning, building, and emergency response framework with evolving wildfire threats.

This designation ensures appropriate application of wildfire mitigation strategies such as California Building Code Chapter 7A construction standards, 100-foot defensible space requirements, and disclosure obligations in real estate transactions. Staff recommend the City Council introduce for first reading the proposed ordinance formally designating the updated Fire Hazard Severity Zones within the City of Lake Forest.

BACKGROUND:

Fire Hazard Severity Zones are designations developed by the California Department of Forestry and Fire Protection (“CAL FIRE”) to classify areas based on their wildfire hazard, informed by variables such as vegetation (fuel), topography, wind patterns, and historical fire behavior. The updated 2025 maps Item: 7
37 3
5 4
0 use advanced fire science and modeling to project the likelihood and intensity of wildfire exposure in various parts of the state.

Lake Forest lies within a Local Responsibility Area (LRA), meaning that the responsibility for wildfire prevention and suppression lies with local government rather than the state. LRAs typically encompass incorporated cities, urban areas, agricultural lands, and other regions where CAL FIRE is not the lead firefighting agency unless under contract. Wildfire protection in Lake Forest’s LRAs is provided primarily by Orange County Fire Authority (“OCFA”). The current Fire Hazard Severity Zone ordinance was adopted by the City Council in 2012 (Ordinance No. 239). The corresponding map is provided as Attachment 2. The proposed Ordinance would repeal and effectively replace Ordinance No. 239.

What Fire Hazard Severity Zones Measure
The Fire Hazard Severity Zone maps evaluate “hazard,” not “risk.” Hazard is based on physical conditions that create expected fire behavior over a 50-year period without considering short-term modifications. Risk is the potential damage a fire can do to the area under existing conditions, including fuel reduction projects, defensible space, and ignition resistant building construction.

DISCUSSION:

Pursuant to Government Code § 51178, the State Fire Marshal must identify areas in the state as Moderate, High, and Very High Fire Hazard Severity Zones.

Government Code § 51179 mandates that local agencies adopt these maps by ordinance within 120 days of receiving the State Fire Marshal’s recommended designations. The updated law now includes all three zones—Moderate, High, and Very High—where previously only Very High zones required local adoption.

CAL FIRE issued revised FHSZ maps on March 24, 2025 (see Attachment 1 Exhibit A). These maps identify specific areas within Lake Forest as being subject to wildfire hazard. Local adoption of these maps ensures alignment with state mandates and triggers the application of wildfire mitigation requirements, including:
•Chapter 7A of the California Building Code (fire-resistant construction) •Public Resources Code § 4291 (defensible space)
•Inspection, education, and enforcement programs
The proposed ordinance formally adopts CAL FIRE’s FHSZ maps as applicable to the City of Lake Forest. Adoption of the ordinance does not create new zones or classifications but recognizes those already determined by the state based on Item: 7
38 3
5 4
0 scientific modeling and fire behavior data. The ordinance would be codified in LFMC Chapter 8.22.

Map Changes
A map that overlays the current map with the 2025 map, to illustrate the changes, is provided as Attachment 3. As shown on this map with crosshatching, the 2025 map mostly extends the Very High designation to contiguous areas not previously designated as a fire zone and adds contiguous areas designated High and Moderate (orange and yellow areas on the map). However, a non- contiguous area southeast of El Toro Road/northeast of Trabuco is newly designated High and Moderate. This area corresponds to a single-family residential neighborhood that is between the Aliso Creek open space corridor and a sloped open space in Mission Viejo.

Additionally, three relatively small areas were removed from the fire zones altogether (blue areas on the map): (1) the Teresina single-family residential neighborhood at the northerly terminus of Peachwood, which completed construction in 2021 and replaced open space; (2) an area north of Portola Parkway/east of Alton Parkway that includes single family homes and non- natural open space; (3) an area corresponding the Hilton Garden Inn and adjacent non-natural open space north of CA-241.

CAL FIRE webpages allows search by address to confirm whether a property is located in a FHSZ: https://osfm.fire.ca.gov/what-we-do/community-wildfire- preparedness-and-mitigation/fire-hazard-severity-zones and comparison of the current/2007 zones and 2025 zones:
https://experience.arcgis.com/experience/5065c998b4b0462f9ec3c6c226c610a9/ page/Compare-old-and-new-LRA-FHSZ.

Local Discretion and Amendments Per SB 63 (2021) and AB 211 (2022) These legislative updates expanded local obligations and clarified that:
•Local agencies may not downgrade FHSZ designations from those issued by the State Fire Marshal.
•Local agencies may upgrade or designate additional areas not identified on the state map as FHSZ with supporting findings.
•An ordinance adopted under § 51179 must be submitted to the State Board of Forestry and Fire Protection within 30 days of adoption.

Impacts On Landowners and Development
Building Standards
Item: 7
39 3
5 4
0 Properties located within High and Very High Fire Hazard Severity Zones are subject to Chapter 7A of the California Building Code and any adopted local amendments thereto. Chapter 7A establishes minimum standards that enhance a building’s resistance to flames and burning embers generated by brush fire.

Chapter 7A requirements apply to building materials, systems, and assemblies used in the design and construction of new buildings, and accessory structures, as well as additions to, and remodels of, buildings/accessory structures originally constructed after July 1, 2008. These requirements include specifications for (but are not limited to):
▪Roofing
▪Vents
▪Exterior Covering
▪Exterior windows, skylights,
and doors
▪Decking
In addition, the City has adopted local amendments to Ch. 7A, on the recommendation of Orange County Fire Authority (OCFA), which state that:

The provisions shall also apply to additions, remodels, and accessory structures located within 100 feet of a fuel
modification zone, vegetation management area, or similar area containing hazardous combustible vegetation, regardless of whether the property is currently located in a designated Fire Hazard Severity Zone or Wildland-Urban Interface Fire Area, when materials and/or construction methods for exterior wild-fire exposure were previously required at the property by the Building or Fire Code Official.

Defensible Space Requirements
As per Government Code § 51182, all property owners in High and Very High FHSZs are required to maintain 100 feet of defensible space around buildings.

This includes:
•Removing dead or dry vegetation
•Creating vertical and horizontal spacing between plants •Keeping roofs and gutters clear of debris
These measures are critical to prevent structure ignition from direct flames or windborne embers.

Real Estate Disclosure
A Natural Hazard Disclosure (NHD) is mandatory for all real estate transactions in Very High FHSZs. Buyers must be informed of the property's wildfire hazard and related responsibilities. More detailed home hardening and defensible space guidance is available at www.ReadyForWildfire.org.

Item: 7
40 3
5 4
0 How the Ordinance Affects Future Development
The expansion of FHSZ is not intended to halt development, but to ensure that new and existing development is designed to withstand wildfire threats. CAL FIRE has worked closely with the building industry to align zoning, construction, and safety standards with these hazard maps.

FAQ
A detailed and informative Frequently Asked Questions (FAQ) regarding the 2025 FHSZ, prepared by CAL FIRE, is provided as Attachment 4. This FAQ was made available to the public on the City’s website on March 27, 2025, coinciding with the public outreach described below.

Public Engagement and Outreach
Pursuant to Government Code § 51178.5, the City made the 2025 FHSZ map available for public review and comment within 30 days of receipt from the State Fire Marshal. Public outreach included:
•Publishing the 2007 and 2025 maps and explanatory materials on the City’s website;
•Distributing information, including links to the City’s website via the City’s social media channels, the E-Newsletter, and the Leaflet; •Publication of public hearing notice in the Saddleback Valley News, a minimum of 10 days before this hearing date.

Environmental Review Under CEQA
Adoption of the 2025 Local Responsibility Area Fire Hazard Severity Zones Map and repeal of Ordinance 239 is not subject to the California Environmental Quality Act ("CEQA") on the basis that such activities are not a “project” as defined by State CEQA Guidelines.

An activity is not subject to CEQA if the activity is not a “project” under State CEQA Guidelines section 15378. (State CEQA Guidelines, § 15060(c)(3).) Section 15378 of the State CEQA Guidelines, in turn, provides that organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment do not qualify as a project subject to CEQA. Here, the proposed activities constitute an organization or administrative activity that will not result in direct or indirect physical changes in the environment because it involves the designation of Moderate, High and Very High Fire Hazard Severity Zones in the Local Responsibility Areas as recommended by the Office of the State Fire Marshal and repeal of Ordinance 239. Accordingly, the proposed activities are not a project subject to CEQA.

Item: 7
41 3
5 4
0 Moreover, even if the proposed activities did qualify as a project subject to CEQA, they would be exempt from CEQA because it can be seen with certainty that there is no possibility that the adoption of the ordinance designating Moderate, High and Very High Fire Hazard Severity Zones in the Local Responsibility Areas and repeal of Ordinance 239 may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).) Next Steps
Upon adoption, the ordinance will:

1. Be transmitted to the State Board of Forestry and Fire Protection within 30 days.

2. Trigger enforcement of Chapter 7A construction requirements in applicable zones.

3. Require the City to post a notice at the office of the county recorder, county assessor, and county planning agency identifying the location of the map provided by the State Fire Marshal.

4. Require ongoing community education and compliance monitoring through the City’s Planning, Building, and Code Enforcement divisions.

FISCAL IMPACT:

There is a negligible fiscal impact associated with the recommended action.

ATTACHMENTS:

1. Draft Ordinance Adopting the 2025 Local Responsibility Area Fire Hazard Severity Zones Map

2. 2007 FHSZ Map (Adopted by the City Council in 2012)

3. Map Showing Changes Between 2007 and 2025 Fire Hazard Severity Zone Maps

4. FHZS FAQ – CAL FIRE
Initiated By: Ron Santos, Senior Planner
Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager
Item: 7
42 ATTACHMENT 1
Item: 7
43 ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF LAKE FOREST,

CALIFORNIA DESIGNATING FIRE HAZARD SEVERITY ZONES

WITHIN THE CITY OF LAKE FOREST AS REQUIRED BY
GOVERNMENT CODE § 51179, BASED ON MAPS PROVIDED BY

THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE
PROTECTION, REPEALING ORDINANCE NO. 239, AND

DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA
WHEREAS, the California Legislature has declared in Government Code Section 51178 that the State Fire Marshal shall identify areas in the state as moderate, high, and very high fire hazard severity zones (FHSZ) based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high FHSZs shall be based on fuel loading, slope, fire weather, and other relevant factors including areas where winds have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread; and
WHEREAS, on March 24, 2025, the California Department of Forestry and Fire Protection (CAL FIRE) transmitted a new Local Responsibility Area Fire Hazard Severity Zone (LRA FHSZ) Map to the City; and
WHEREAS, the creation of the LRA FHSZ Maps relied upon current scientific methods which assessed vegetation, slope, fire history, weather patterns; and
WHEREAS, pursuant to Government Code Section 51178.5, within 30 days after receiving a transmittal from the State Fire Marshal that identifies FHSZs pursuant to Section 51178, a local agency shall make the information available for public review and comment. The information shall be presented in a format that is understandable and accessible to the general public, including, but not limited to, maps; and
WHEREAS, the City made the 2025 LRA FHSZ Map available for public review and comment within 30 days of receipt from the State Fire Marshal. Public outreach included:
•Publishing the 2007 and 2025 maps and explanatory materials on the City’s website;
•Distributing information, including links to the City’s website via the City’s social media channels, the E-News Letter, and the Leaflet; Item: 7
44 •Publication of public hearing notice in the Saddleback Valley News, a minimum of 10 days before the hearing date at which the City Council considered this Ordinance; and
WHEREAS, the Orange County Fire Authority has reviewed the FHSZ Map and believes it accurately represents the Fire Hazard Zones within the City; and
WHEREAS, pursuant to Government Code Section 51179, a local agency shall designate, by ordinance, moderate, high, and very high FHSZs in its jurisdiction within 120 days of receiving recommendations from the State Fire Marshal; and
WHEREAS, the City Council conducted a duly noticed public hearing on June 3, 2025, at which time all interested persons had the opportunity to appear and be heard on the matter of adopting the FHSZ designations/map; and WHEREAS, based on the entire record before the City Council and all written and oral evidence presented, the City Council finds the proposed Ordinance complies with the California Environmental Quality Act for the reasons set forth in this Ordinance; and
WHEREAS, any and all other legal prerequisites relating to the adoption of this Ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Ordinance.

SECTION 2.COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT. The City Council finds that Adoption of the 2025 Local Responsibility Area Fire Hazard Severity Zones Map and repeal of Ordinance 239 is not subject to the California Environmental Quality Act ("CEQA") on the basis that such activities are not a “project” as defined by State CEQA Guidelines. An activity is not subject to CEQA if the activity is not a “project” under State CEQA Guidelines section 15378. (State CEQA Guidelines, § 15060(c)(3).) Section 15378 of the State CEQA Guidelines, in turn, provides that organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment do not qualify as a project subject to CEQA. Here, the proposed activities constitute an organization or administrative activity that will not result in direct or indirect physical changes in the environment because it involves the designation of Moderate, High and Very Item: 7
45 High Fire Hazard Severity Zones in the Local Responsibility Areas as recommended by the Office of the State Fire Marshal and repeal of Ordinance 239. Accordingly, the proposed activities are not a project subject to CEQA.

Moreover, even if the proposed activities did qualify as a project subject to CEQA, they would be exempt from CEQA because it can be seen with certainty that there is no possibility that the adoption of the ordinance designating Moderate, High and Very High Fire Hazard Severity Zones in the Local Responsibility Areas and repeal of Ordinance 239 may have a significant effect on the environment. (State CEQA Guidelines, § 15061(b)(3).) SECTION 3. The City Council hereby deems the 2007 Fire Hazard Severity Zone Map adopted by Ordinance No. 239 obsolete, having been replaced by the 2025 LRA Fire Hazard Severity Zone Map, which is herewith adopted, and repeals Ordinance No. 239.

SECTION 4. The City Council of the City of Lake Forest hereby designates and approves the FHSZs as recommended by the California Department of Forestry and Fire Protection pursuant to Government Code Section 51178 and adopts the 2025 Local Responsibility Area Fire Hazard Severity Zones map, as recommended by the Department of Forestry and Fire Protection, as attached hereto as Exhibit A. The official map is also located electronically on the following website: https://fire-hazard-severity-zones-rollout-calfire- forestry.hub.arcgis.com/pages/access-map.

SECTION 5. Chapter 8.22 (Reserved) of the Lake Forest Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 8.22 (Fire Hazard Severity Zones)
Sec. 8.22.000. Fire Hazard Severity Zones.

The Local Responsibility Area Fire Hazard Severity Zone Map (CalFIRE March 24, 2025), is hereby adopted by the City of Lake Forest for the purpose of identifying areas designated Fire Hazard Severity Zones and for application of the provisions with Chapter 7A of the California Building Code, Materials and Construction Methods for Exterior Wildfire Exposure.”
SECTION 6. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion Item: 7
46 thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 7. CUSTODIAN OF RECORDS. The documents and materials that constitute the record of proceedings on which these findings are based are located at City Hall for the City of Lake Forest, located at 100 Civic Center Drive, Lake Forest, California. The City Clerk is the custodian of the record of proceedings.

SECTION 8. The City Clerk shall certify as to the adoption of this Ordinance and shall cause a summary thereof to be published within fifteen (15) days of the adoption and shall post a Certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

SECTION 9. This Ordinance shall be effective thirty days after its adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Lake Forest, California, at a regular meeting of the City Council held on __________, 2025 by the following vote, to wit:
_______________________

SCOTT VOIGTS
MAYOR
ATTEST:
______________________________________

THY MERRITT

ACTING CITY CLERK
APPROVED AS TO FORM:
______________________________________

MATTHEW RICHARDSON

CITY ATTORNEY
Item: 7
47 STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Thy Merritt, Acting City Clerk of the City of Lake Forest, California do hereby certify that the foregoing Ordinance No. 2025-__ was duly passed and adopted at a regular meeting of the Lake Forest City Council on the _____ day of _______ 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________

THY MERRITT

ACTING CITY CLERK
Item: 7
48 EXHIBIT A
(on following page)
Item: 7
49 Item: 7
50 ATTACHMENT 2
Item: 7
51 Lake Forest
Very High Fire Hazard Severity Zones in LRA
As Recommended by CAL FIRE
Government Code 51175-89 directs the California Department of Forestry and Fire Protection (CAL FIRE) to identify areas of very high fire hazard severity zones within Local Responsibility Areas (LRA). Mapping of the areas, referred Fire Hazard Severity Zones to as Very High Fire Hazard Severity Zones (VHFHSZ), is based on data and models of, potential fuels over a 30-50 year time horizon and their associated expected fire behavior, and expected burn probabilities to quantify the likelihood and nature of vegetation fire exposure (including firebrands) to buildings. Details on the project and specific modeling Local Responsibility Area State or Federal Responsibility Areas methodology can be found at http://frap.cdf.ca.gov/projects/hazard/methods.htm . Local Responsibility Area VHFHSZ maps were initially developed in the mid-1990s and are now being updated based on improved science, mapping techniques, and data.

VHFHSZ VHFHSZ
In late 2005 to be effective in 2008, the California Building Commission adopted California Building Code Chapter 7A Non-VHFHSZ requiring new buildings in VH FHSZs to use ignition resistant construction methods and materials. These new codes include provisions to improve the ignition resistance of buildings, especially from firebrands. The updated very high fire hazard severity zones will be used by building officials for new building permits in LRA. The updated zones will also be used to identify property whose owners must comply with natural hazards disclosure requirements at time of property sale and 100 foot defensible space clearance. It is likely that the fire hazard severity zones will be used for updates to the safety element of general plans.

Non-VHFHSZ
City Boundary This specific map is based on a geographic information system dataset that depicts final CAL FIRE recommendations for Very High FHSZs within the local jurisdiction. The process of finalizing these boundaries involved an extensive local Parcels review process, the details of which are available at http://frap.cdf.ca.gov/projects/hazard/btnet / (click on "Continue as guest without logging in"). Local government has 120 days to designate, by ordinance, very high fire hazard severity zones within its jurisdiction after receiving the recommendation. Local government can add additional VHFHSZs.

County Boundary There is no requirement for local government to report their final action to CAL FIRE when the recommended zones are adopted. Consequently, users are directed to the appropriate local entity (county, city, fire department, or Fire Protection District) to determine the status of the local fire hazard severity zone ordinance. ©
0 0.5 1 1.5 2
Miles
This map was developed using data products such as parcel and city boundaries provided by local government agencies. 0 1 2 3 4 In certain cases, this includes copyrighted geographic information. The maps are for display purposes only - questions and Kilometers requests related to parcel or city boundary data should be directed to the appropriate local government entity.

Projection Al
Sca
bers, NAD 1983
le 1: 16,000
at 36" x 42"
October, 2011
The State of California and the Department of Forestry and Fire Protection make no representations Map ID: LakeForest or warranties regarding the accuracy of data or maps. Neither the State nor the Department shall be Jerry Brown, Governor, State of California liable under any circumstances for any direct, special, incidental, or consequential damages with respect to any claim by any user or third party on account of, or arising from, the use of data or maps. John Laird, Secretary for Resources, The Natural Resources Agency DATA SOURCES Ken Pimlott, Director, Department of Forestry and Fire Protection CAL FIRE Fire Hazard Severity Zones (FHSZL06_1) Obtain FRAP maps, data, metadata and publications on the Internet at http://frap.cdf.ca.gov CAL FIRE Very High Fire Hazard Severity Zones in LRA - Orange (c30fhszl06_3) For more information, contact CAL FIRE-FRAP, PO Box 944246, Sacramento, CA 94244-2460, (916) 327-3939.

Item: 7
52 ATTACHMENT 3
Item: 7
53 Areas Gained in 2025

Areas Removed in 2025
2025 Moderate Fire Zone
2025 High Fire Zone 2025
Very High Fire Zone City
Boundary
¯
0 10.5
Miles
City of Lake Forest
Fire Hazard Severity
Zones
2025 Update
Item: 7
54 ATTACHMENT 4
Item: 7
55 CAL FIRE – December 18, 2024
2024 FAQ Page 1

• What is a “Fire Hazard Severity Zone,” or FHSZ?
o Answer: Public Resource Code 4202; The State Fire Marshal shall classify lands within state responsibility areas into fire hazard severity zones. Each zone shall embrace relatively homogeneous lands and shall be based on fuel loading, slope, fire weather, and other relevant factors present, including areas where winds have been identified by the department as a major cause of wildfire spread. Government Code 51178; The State Fire Marshal shall identify areas in the state as moderate, high, and very high fire hazard severity zones based on consistent statewide criteria and based on the severity of fire hazard that is expected to prevail in those areas. Moderate, high, and very high fire hazard severity zones shall be based on fuel loading, slope, fire weather, and other relevant factors including areas where winds have been identified by the Office of the State Fire Marshal as a major cause of wildfire spread.

• Why are fire hazard severity maps being updated?
o Answer: The hazard maps are being updated to more accurately reflect the zones in California that are susceptible to wildfire. The hazard mapping process will incorporate new science in local climate data and improved fire assessment modeling in determining hazard ratings.

• What do Fire Hazard Severity Zones measure?
o Answer: The Fire Hazard Severity Zone map evaluates “hazard,” not “risk”. The map is like flood zone maps, where lands are described in terms of the probability level of a particular area being inundated by floodwaters, and not specifically prescriptive of impacts. “Hazard” is based on the physical conditions that create a likelihood and expected fire behavior over a 30 to 50-year period without considering mitigation measures such as home hardening, recent wildfire, or fuel reduction efforts. “Risk” is the potential damage a fire can do to the area under existing conditions, accounting for any modifications such as fuel reduction projects, defensible space, and ignition resistant building construction.

• Where do Fire Hazard Severity Zones apply?
o Answer: Fire Hazard Severity Zones are found in areas where the state has financial responsibility for wildfire protection and prevention, called the State Responsibility Area.

More than 31 million acres are in this area. Under Senate Bill 63 (Stern, 2021) Government Code 51178 was amended to add the Moderate and High Fire Hazard Severity Zones with the Very High in local jurisdictions.

• What are the uses of Fire Hazard Severity Zones?
o Answer: The zones are used for several purposes including to designate areas where California’s defensible space standards and wildland urban interface building codes are F

REQUENTLY
A
SKED
Q

UESTIONS
A
BOUT
:

202
4 Fire Hazard Severity Zon
es

F
ire Hazard Severity Zones Explained

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56 CAL FIRE – December 18, 2024
2024 FAQ Page 2
required. They can be a factor in real estate disclosure, and local governments may consider them in their general plan.

• Is there an easy way to determine the Fire Hazard Severity Zone of my property? o Answer: You can search by address to find your current designation on the web at:
osfm.fire.ca.gov/FHSZ

• What are the key elements of the Fire Hazard Severity Zone model? o Answer: The fire hazard severity model for wildland fire has two key elements: probability of an area burning and expected fire behavior under extreme fuel and weather conditions.

The zones reflect areas that have similar burn probabilities and fire behavior characteristics. The factors considered in determining fire hazard within wildland areas are fire history, flame length, terrain, local weather , and potential fuel over a 50-year period.

Outside of wildlands, the model considers factors that might lead to buildings being threatened, including terrain, weather, urban vegetation cover, blowing embers, proximity to wildland, fire history, and fire hazard in nearby wildlands. FHSZs are not a structure loss model, as key information regarding structure ignition (such as roof type, etc.) is not included.

• How do the Fire Hazard Severity Zone Maps differ from California Public Utilities Commission (CPUC) High Fire Threat District Maps?
o Answer: The California Public Utilities Commission (CPUC) sponsored map, known as "CPUC High Fire Threat District Map” (HFTD), includes similar factors as those in the FHSZ maps, however the CPUC HFTD Map is designed specifically for identifying areas where there is an increased risk for utility associated wildfires. As such, the CPUC map includes fire hazards associated with historical powerline-caused wildfires, current fuel conditions, and scores areas based on where fires start, as opposed to where potential fires may cause impacts.

• Why is my property in a different zone than the adjacent area, which looks similar? o Answer: In non-wildland areas, zone edges occur based on distance to the wildland edge.

Because hazard in these areas is largely determined by incoming embers from adjacent wildland, urban areas that are similar in vegetation type and housing density may have a change in FHSZ class as the distance to the wildland edge increases. Areas immediately adjacent to wildland receive the same FHSZ score as that wildland where fire originates, and the model then produces lower scores as the distance to wildland edge increases.

In wildland areas, zone edges are a result of the way zones are delineated. Specifically, zones represent areas of similar slope and fuel potential. Zone boundaries divide zones based on geographic and vegetation features that align with fire hazard potential; although, at a local scale, it may appear that the immediate area is similar on both sides of the edge. The class value within a zone is based on the average hazard score across the whole zone, so areas that are in the same zone but not immediately adjacent to a local area can have an influence on the final zone classification.

Data Related Questions

• How are Fire Hazard Severity Zones determined?
o Answer: CAL FIRE used the best available science and data to develop, and field test a model that served as the basis of zone assignments. The model evaluated the probability of Item: 7
57 CAL FIRE – December 18, 2024
2024 FAQ Page 3
the area burning and potential fire behavior in the area. Many factors were included such as fire history, vegetation, flame length, blowing embers, proximity to wildland, terrain, and weather.

• What new data will be included in the new model, and how does this differ from the previous model?
o Answer: A 2 km grid of climate data covering the years 2003-2018 is being used in the update. The previous model used stock weather inputs across the state to calculate wildland fire intensity scores. The updated model will adjust fire intensity scores based on the most extreme fire weather at a given location, considering temperature, humidity, and wind speed. In addition, ember transport is being modeled based on local distributions of observed wind speed and direction values instead of using a generic buffer distance for urban areas adjacent to wildlands.

• What is the difference between the various Fire Hazard Severity Zones? o Answer: Classification of a wildland zone as Moderate, High or Very High fire hazard is based on the average hazard across the area included in the zone, which have a minimum size of 200 acres. In wildlands, hazard is a function of modeled flame length under the worst conditions and annual burn probability. Both these factors generally increase with increasing hazard level, but there may be instances where one value is Very High and the other is low, pushing the overall hazard into a more intermediate ranking. On average, both modeled flame length and burn probability increase by roughly 40-60% between hazard classes. Classification outside of wildland areas is based on the fire hazard of the adjacent wildland and the probability of flames and embers threatening buildings.

• Why does the model place an emphasis on the spread of embers? o Answer: Embers spread wildfire because they can travel long distances in the wind and ignite vegetation, roofs, attics (by getting into vents), and decks.

State Regulated Area Questions

• When were the maps last updated?
o Answer: The Office of the State Fire Marshal began the regulatory process for the State Responsibility Area (SRA) in December 2022, the final maps were adopted on January 31, 2024, and became effective April 1, 2024.

• What is “State Responsibility Area," or SRA?
o Answer: SRA is a legal term defining the area where the state has financial responsibility for wildland fire protection and prevention. Incorporated cities and federal ownership are not included. Within the SRA, CAL FIRE is responsible for fire prevention and suppression.

There are more than 31 million acres in SRA, with an estimated 1.7 million people and 800,000 existing homes.

• How is state responsibility area determined?
o Answer: The Board of Forestry and Fire Protection (Board) classifies land as State Responsibility Area. The legal definition of SRA is found in the Public Resources Code Section 4125. The Board has developed detailed procedures to classify lands as State Responsibility Area. Lands are removed from SRA when they become incorporated by a city, change in ownership to the federal government, become more densely populated, or are converted to intensive agriculture that minimizes the risk of wildfire. While some lands are removed from SRA automatically, the Board typically reviews changes every five years.

Item: 7
58 CAL FIRE – December 18, 2024
2024 FAQ Page 4

• What Fire Hazard Severity Zones are in State Responsibility Area? o Answer: All of the State Responsibility Area is in a Fire Hazard Severity Zone. Lands are either ranked as Moderate, High or Very High Fire Hazard Severity Zones.

• What are the wildland urban interface (WUI) building codes in State Responsibility Area? o Answer: The WUI building codes (California Building Code (CBC) Chapter 7A) reduce the risk of embers fanned by wind-blown wildfires from igniting buildings. The codes for roofing, siding, decking, windows, and vents apply throughout all state responsibility area regardless of the fire hazard severity ranking. Ember-resistant building materials can be found at: https://osfm.fire.ca.gov/divisions/fire-engineering-and- investigations/buildingmaterials-listing/

• Is the GIS data for Fire Hazard Severity Zones available for download? o Answer: The data inputs used to develop the Fire Hazard Severity Zones are identified in the Initial Statement of Reasons (ISOR) Title 19 Development (ca.gov). CAL FIRE has developed an additional data package which consists of sequential modeling steps, including any data inputs that were not already publicly available and referenced in the ISOR. The data package encompasses 34 spatial datasets and 8 tables, provided in raster, polygon, and table format. These datasets are formatted for Esri ArcGIS software, except for four tables provided in Excel. Ten of the datasets are updated versions used to produce an edited SRA FHSZ map following the public comment period that ended April 4, 2023.

Upon formal adoption of the FHSZ map, the final SRA FHSZ geospatial data file will become available. The data package is available on the FHSZ website Fire Hazard Severity Zones (ca.gov) under the science and methods banner.

• Why do waterbodies have a Fire Hazard Severity Zone Classification? o Answer: All areas in State Responsibility Area, including water bodies, require a fire hazard severity zone designation. The 2007 FHSZ maps zoned all water as moderate by default. In the 2023 FHSZ model we added a buffer of FHSZ from the surrounding wildland into water bodies to account for potential threat of embers to buildings on docks and house boats, as well as variation in reservoir height that occurs with drought.

Local Regulated Area Questions

• What is “Local Responsibility Area”, or LRA?
o Answer: Local Responsibility Areas (LRA) are incorporated cities, urban regions, agriculture lands, and portions of the desert where the local government is responsible for wildfire protection. This is typically provided by city fire departments, fire protection districts, counties, and by CAL FIRE under contract.

• When did Fire Hazard Severity Zones start in Local Responsibility Area? o Answer: The “Bates Bill” (AB 337), Government Code Section 51175, was prompted by the devastating Oakland Hills Fire of 1991. This mid-1990s legislation calls for CAL FIRE to evaluate fire hazard severity in local responsibility area and to make a recommendation to the local jurisdiction where very high FHSZs exist. The Government Code then provides direction for the local jurisdiction to take appropriate action.

• How are Fire Hazard Severity Zones determined in local responsibility areas? o Answer: CAL FIRE uses an extension of the state responsibility area Fire Hazard Severity Item: 7
59 CAL FIRE – December 18, 2024
2024 FAQ Page 5
Zone model as the basis for evaluating fire hazard in Local Responsibility Area. The Local Responsibility Area hazard rating reflects flame and ember intrusion from adjacent wildlands and from flammable vegetation in the urban area.

• What are the requirements for landowners in FHSZs in local responsibility areas? o Answer: California’s WUI building codes (CBC Chapter 7A) apply to the design and construction of new buildings located in High and Very High FHSZs in Local Responsibility Areas. Local ordinances may require ignition resistant construction for remodel projects.

Check with your local building department to determine which ignition resistant building codes apply to your project. In addition, Government Code Section 51182 calls for defensible space clearance and other wildland fire safety practices for buildings. Owners are also required to make a natural hazard disclosure as part of a real estate transfer. For information regarding “home hardening” and defensible space clearance, visit www.ReadyForWildfire.org.

• Does the designation of Very High Fire Hazard Severity Zones in the Local Responsibility Area trigger the 100-foot clearance requirement?
o Answer: Yes, per Government Code 51182 unless a local government has passed a more stringent requirement, the 100-foot defensible space clearance applies. For information regarding “home hardening” and defensible space clearance, visit www.ReadyForWildfire.org.

• How does CAL FIRE assist Local Governments in Fire Hazard Severity Zones? o Answer: CAL FIRE’s Land Use Planning Program is a specialized unit that provides support to local governments by providing fire safety expertise on the State’s wildland urban interface building codes, wildfire safety codes, as well as helping in the development of the safety elements in general plans.

• What is the process for developing Fire Hazard Severity Zones in the Local Responsibility Area? o Answer: CAL FIRE uses the same modeling data that is used to map the State Responsibility Area. The map, along with a model ordinance, are then sent to the governing body for adoption.

• How are the new Fire Hazard Severity Zones impacting development? o Answer: Many of the changes expanding fire hazard severity zones in local responsibility areas (LRA) have been supported by the building industry. CAL FIRE works closely with the building industry when setting various building codes and defensible space requirements, so we are working together to not affect development itself but to make sure development matches the hazards of that area.

• When will the Local Responsibility Area Map be released? o Answer: The Local Responsibility Area Map Process will happen after the State Responsibility Area process has been completed, which is estimated to occur in the winter of 2025.

• Why haven’t Moderate and High Fire Hazard Severity Zone classes been classified before in the Local Responsibility Area?
o Answer: New legislation, Senate Bill 63 (Stern, 2021), now requires the adoption of all three Fire Hazard Severity Zone classes in the Local Responsibility Area. Previously only Very High Fire Hazard Severity Zones were required for adoption in Local Responsibility Areas.

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60 CAL FIRE – December 18, 2024
2024 FAQ Page 6
Insurance Related Questions

• Will the new Fire Hazard Severity Zones affect my ability to get or maintain insurance? o Answer: Insurance companies use risk models, which differ from hazard models, because they consider the susceptibility of a structure to damage from fire and other short-term factors that are not included in hazard modeling. It is unlikely that insurance risk models specifically call out CAL FIRE Fire Hazard Severity Zones as a factor, but much of the same data that is used in the fire hazard severity zone model are likely included in the insurance companies’ risk models. However, insurance risk models incorporate many additional factors and factors that change more frequently than those that CAL FIRE includes in its hazard mapping, which is built to remain steady for the next 10+ years.

Resources, Additional Information, and Contact Information

• To find the current FHSZ designation for a property, visit FHSZ Map Viewer (ca.gov).

• Helpful links:
o FHSZ Website:
▪ osfm.fire.ca.gov/FHSZ

o FHSZ Map Viewer:
▪ FHSZ Map Viewer (ca.gov)

• Contacts for FHSZ for Public Questions:
o (916) 633-7655
o [email protected]

Item: 7
61 CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: Community Development
SUBJECT:

LAKE FOREST MUNICIPAL CODE AMENDMENTS RELATED TO CYBER

CAFES AND THRIFT STORES
RECOMMENDED ACTION(S):

Introduce for first reading an Ordinance Entitled: AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING

VARIOUS SECTIONS OF THE LAKE FOREST MUNICIPAL CODE RELATED TO THE REGULATION OF CYBER CAFÉS AND THRIFT STORES
EXECUTIVE SUMMARY:

This ordinance (Attachment 1) is a City-initiated Municipal Code Amendment, which includes revisions to Title 5 (Business Regulations) and Title 9 (Zoning Code) related to regulations for “Cyber Cafés” and “Thrift Stores.”

1. Cyber Cafés
In 2003, cyber cafés were an emerging form of business, and other jurisdictions reported an increase in minor and major crimes associated with them. In 2003, the City Council approved an ordinance regulating cyber cafes to deter and prevent crimes and criminal activity from occurring at and around cyber cafes.

The ordinance generally defines cyber cafés as a business with six or more computers for access to the Internet, video games, and/or computers software programs. The ordinance added Chapter 5.34 to the Lake Forest Municipal Code (LFMC), which includes cyber café operational regulations and processing requirements for an annual license.

However, in the last two decades, Lake Forest has not experienced an escalation of crimes in conjunction with cyber cafés. These regulations in the ordinance have imposed unintended barriers on these businesses. Staff is recommending the elimination of Chapter 5.34 in Title 5 of the LFMC, which will eliminate the cyber café annual license and related operational regulations. In addition, Zoning Code amendments are proposed to update definitions, create the new use “Digital Entertainment,” and revise the land use matrices.

Item: 8
62 3
5 4
6 2. Thrift Stores
The Municipal Code Amendment also updates the Zoning Code related to “Thrift Stores.” In 2024, California Assembly Bill (AB) 2632 was approved. This state law prohibits a city from treating a thrift store, which could include a donation center, differently from a similar retail store. AB 2632 allows a city to require that thrift stores meet certain design standards. In compliance with AB 2632, the Zoning Code Amendment includes revisions to definitions, and the land use matrices related to “Thrift Stores” and “Donation Centers, Attended” to ensure consistency with the state law. Additionally, a new Zoning Code Section is proposed with new design standards for thrift stores to ensure that no outdoor storage of donations occur.

The Planning Commission reviewed the zoning code amendments (ZC 03-25- 5781) at a public hearing on May 8, 2025, and adopted a resolution recommending approval by the City Council. Staff recommends the City Council introduce the proposed ordinance for first reading.

BACKGROUND:

City Cyber Café Regulations
In April of 2003, the Lake Forest City Council approved Ordinance 135 regulating cyber cafés. The City Council staff report for this ordinance is included as Attachment 2. Per the staff report, in 2003, cyber cafés were an emerging form of business that, in many instances, catered to the youth who were interested in playing computer/video games. At the time, cyber cafes in other jurisdictions, such as Garden Grove, Placentia, Los Alamitos and Los Angeles County cities, reported experiencing an escalation of minor crimes such as loitering and curfew violations, and major crimes such as firearm and drug possession, gang violence, fights, and murder. In response to the rising concern of violence directly or indirectly related to the business practices of cyber cafes in other jurisdictions, the City Council adopted the cyber café ordinance as precautionary measure to ensure the continued safety of the community.

The ordinance created Chapter 5.34 of the City’s Municipal Code (Attachment 3).

This code section requires all cyber cafes to obtain an annual license and meet certain operational requirements. Code Section 5.34.090 includes 15 operational requirements. Some of these requirements include hours of operation limitations, additional hours of operation limitations for minors under 18, requirement for a waiting room of at least 8 seats, prohibiting the employment of any person under 18, surveillance system and lighting requirements, and floor plan layout requirements.

Item: 8
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6 Based on City records, from 2003 to 2014, the City had a total of 5 different licensed cyber cafes in the city. Based on City records, none of the cyber café licenses were ever revoked and no renewals were denied. Based on staff knowledge, the only issue involved noise complaints from the single-family residences adjacent to one of the cyber cafes. This issue was resolved through code enforcement and requiring the doors to remain closed in the evenings.

From 2014 to 2022 there were no licensed cyber cafes in the City. However, in 2023, the City received 2 applications to operate businesses related to Esports.

Esports, or electronic sports, refers to competitive video gaming. This new type of business fell under the current definition of “Cyber Cafes” in the City’s Zoning Code and both obtained cyber café licenses. In anticipation of this ordinance, code enforcement staff observed these two businesses on weekend evenings for a few weeks. Code enforcement staff did not observe any loitering, noise, or parking issues at these businesses.

State Thrift Store Regulations
In September of 2024, the California Legislature approved, and the Governor signed into law, Assembly Bill 2632 (“AB 2632”), (Attachment 4) which imposes new limitations on how local agencies may regulate thrift stores that sell secondhand or donated clothes. The definition of thrift store in the bill includes related donation facilities. The new assembly bill would prohibit the City, from treating a thrift store, which may include a donation facility, differently from a new item retail store, with the exception of certain design standards prescribed by the bill.

DISCUSSION:

Proposed Digital Entertainment Regulations
In the two decades since the Cyber Café Ordinance was first enacted, the nature of the “cyber cafés” has changed. This is due to the increased accessibility of high-speed Internet in homes and via cell phones. Furthermore, the crime associated with cyber cafes in northern Orange County and Los Angeles in 2003 did not occur in Lake Forest. The overregulation of these types of businesses is creating unintended barriers which cause additional capital and operating costs.

As such, to remove these unintended barriers from City businesses, staff is recommending the elimination of Chapter 5.34, which will remove the requirement for an annual license and the related cyber café regulations. The removal of these requirements was reviewed by the City’s Chief of Police Services.

Item: 8
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6 Additionally, staff recommends changes to the Zoning Code, which include replacing the outdated term “cyber café” with the term “digital entertainment.” The Amendment includes the following new definition for “digital entertainment”:

Digital Entertainment: An establishment whose primary business is entertainment, that provides more than four computers and/or electronic devices to its users for compensation, including but not limited to memberships, for any or all of the following activities:
(1) Playing video games;
(2) Internet Access; and
(3) Access to other computer software programs.

The term “digital entertainment” shall also include a “cyber café,” “internet café,” and “Esports.” Digital entertainment does not include businesses where personal computer access is incidental to the permitted use, schools, educational tutoring, or public agencies.

Additionally, the amendment includes revisions to the definitions of “Cyber Café,” “Internet Café,” and added a definition for “Esports” that refers back to the definition of “Digital Entertainment.”
The Zoning Code Amendments also include revisions to the City’s two land use matrices (Non-Residential Zoning Districts and Mixed-Use Zoning Districts). The row related to “Cyber Cafes” in both matrices is proposed to be deleted and replaced with the following:

Zoning Code Section 9.72.090
Use C I PA UA CAN A1 OS
Digital Entertainment P X X P X X X
P= Permitted Use X= Prohibited Use
Zoning Code Section 9.73.065
Use MU 32 MU 43 MUO UI 25 UI 43
Digital Entertainment P P P P P
P= Permitted Use
The zoning districts where digital entertainment is allowed is consistent with where cyber cafes were allowed. The only change is that the footnote referencing the permit and regulations in Chapter 5.34 was eliminated.

Proposed Thrift Store Regulations
In response to AB 2632, the City is proposing modifications to the City’s Zoning Code to comply with the new State Law. As drafted in the Zoning Code Amendment the definitions of “Donation Center, Attended” and “Thrift Store,” Item: 8
65 3
5 4
6 have been revised as follows (deleted text shown as strike-out, new text shown in bold underline):

Donation Center, Attended: An attended facility for the collection of re- usable goods for distribution, sale or reuse, that is not attached to or part of a thrift store.
-Thrift Store: A commercial establishment or non-profit organization which sells re-usable goods. A retail store and related donation facilities engaged primarily in the sale of secondhand clothing, shoes, apparel, toys, and standard household goods, including furniture, fixtures, and small household appliances, and the collection of those goods for resale. “Thrift store” does not include the sale of large household appliances such as
refrigerators or stoves, the sale of cars or anything automotive- related, pawnbrokers, attended donation centers, or donation collection boxes.

Additionally, as shown in the following two tables, the “Thrift Store” row in the City’s two land use matrices (Non-Residential Zoning Districts and Mixed-Use Zoning Districts) were revised to be consistent with “Retail Business.” A new footnote was added to each land use matrix referencing a new Thrift Store Code Section (Zoning Code Section 9.146.200).

Zoning Code Section 9.72.090
Use C I PA UA CAN A1 OS
Thrift Store P11 A1,11 X P11 X X U11
Footnotes

1. The accessory use shall be incidental, related, and clearly subordinate to the main use of the lot or building. Must not comprise more than 15% of the total floor area of principal use.

11. Subject to regulations in Section 9.146.200 (Thrift Stores).

Zoning Code Section 9.73.065
Use MU 32 MU 43 MUO UI 25 UI 43
Thrift Store P10 P10 P10 P10 P10
Footnotes

10. Subject to regulations in Section 9.146.200 (Thrift Stores).

Lastly, AB 2632 allows the City to add specific design standards for thrift stores.

As such, the draft Zoning Code Amendment includes a new code section,

9.146.200 with the following new design standards for thrift stores:

1. The delivery and storage of goods or donations must be conducted inside the building.

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6 2. Donations can only be accepted during business hours.

3. The donation process must be supervised and operated by employees of the Thrift Store. Any donated or discarded items left outside the building must be immediately removed.

These design standards are intended to ensure that all donations for the business are taken inside the building and no donations are left outside the building. These code sections will also facilitate the code enforcement process to ensure that outdoor storage of donations does not occur at thrift stores.

Furthermore, these revisions will create consistency with the new State laws.

PLANNING COMMISSION:

The Planning Commission reviewed the Zoning Code Amendments (ZC 03-25- 5781) at a public hearing on May 8, 2025, and adopted a resolution recommending approval by the City Council (Attachment 5). The draft ordinance showing the final amendments to the Zoning Code as recommended for approval by the Planning Commission is provided as Attachment 1.

ENVIRONMENTAL REVIEW:

ZC 03-25-5781 is not subject to the California Environmental Quality Act ("CEQA") pursuant to the following sections of the State CEQA Guidelines:

Pursuant to State CEQA Guidelines section 15060(c)(2), an activity is not subject to CEQA if the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment. Here, ZC 03-25-5781 will eliminate all cyber café regulations and amends regulations related to thrift stores. Neither of these actions cause a direct or reasonably indirect physical change in the environment because such actions do not authorize or prompt any development or physical changes to the environment. Thus, section 15060(c)(2) applies to ZC 03-25-5781 and no further action is therefore required.

Additionally, under State CEQA Guidelines section 15060(c)(3), an activity is not subject to CEQA if the activity is not a project as defined in Section 15378(a).

Under Section 15378(a), a project is an action that has the potential for resulting in a direct or reasonably foreseeable indirect physical change in the environment.

As discussed above, ZC 03-25-5781 will eliminate all cyber café regulations and amends regulations related to thrift stores. Neither of these actions cause a direct or reasonably indirect physical change in the environment because such actions do not authorize or prompt any development or physical changes to the environment. Therefore, ZC 03-25-5781 does not constitute a project as defined by CEQA and no further action is therefore required
ZC 03-25-5781 also qualifies for the common sense exemption under Section 15061(b)(3). Under Section 15061(b)(3), CEQA applies only to projects which Item: 8
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6 have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Here, the Ordinance does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment because it involves the removal of regulations for cyber cafes, and clarifications to regulations related to thrift stores and donation centers in accordance with California Assembly Bill 2632.

Therefore, it can be seen with certainty that there is no possibility that ZC 03-25- 5781 may have a significant effect on the environment. As a result, ZC 03-25- 5781 is not subject to CEQA.

PUBLIC NOTICING:

In accordance with the requirements of Section 9.184.040(C)(2) of the Municipal Code of the City of Lake Forest and California Government Code 65854(b)(2), on May 22, 2025, this project has been noticed in a newspaper of general circulation and the public notice was posted at City Hall.

FISCAL IMPACT:

There is no fiscal impact related to the recommended actions.

ATTACHMENTS:

1. Draft Ordinance

2. 2003 City Council Staff Report related to Cyber Café Ordinance

3. LFMC Chapter 5.34 Cyber Cafes

4. California Assembly Bill 2632

5. ZC 03-25-5781 Planning Commission Resolution
Initiated By: Jennifer Mansur, AICP, Senior Planner
Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager
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Attachment 2
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ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA, AMENDING

VARIOUS SECTIONS OF THE LAKE FOREST

MUNICIPAL CODE RELATED TO THE REGULATION
OF CYBER CAFÉS AND THRIFT STORES
WHEREAS, in 2003, cyber cafés were an emerging form of business that in many instances catered to the youth who were interested in playing computer/video games. At the time, cyber cafes in other jurisdictions, such as Garden Grove, Placentia, Los Alamitos and Los Angeles County cities reported experiencing an escalation of minor and major crimes in conjunction with cyber cafes; and
WHEREAS, in 2003, the City Council approved an ordinance regulating establishments that provided the public with access to the internet (“Cyber Café Ordinance”) to help deter and prevent crimes and criminal activity from occurring at and around Cyber Cafes; and
WHEREAS, in the last two decades, Lake Forest did not experience an escalation of minor or major crimes in conjunction with cyber cafes; and WHEREAS, this modern-day environment presents a dramatically altered regulatory environment from the one in which the Cyber Café Ordinance was enacted; and
WHEREAS, as written in Chapter 5.34, the Cyber Café Ordinance imposes unintended barriers on new types of computer related businesses; and WHEREAS, the City desires to modernize the Lake Forest Municipal Code to remove these unintended barriers; and
WHEREAS, in 2024, the California Legislature approved, and the Governor signed into law, Assembly Bill 2632 (“AB 2632”), which imposes new limitations on how local agencies may regulate thrift stores that sell secondhand or donated clothes; and
WHEREAS, the City initiated Zoning Code Amendment 03-25-5781 (“ZC 03- 25-5781”) to update various sections of the Lake Forest Municipal Code related to cyber cafes and thrift stores, as described in this Ordinance; and Item: 8
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WHEREAS, on April 17, 2025, the City gave public notice for Planning Commission public hearing for ZC 03-25-5781 by publishing the required notice in a newspaper of general circulation and posting the notice at City Hall; and WHEREAS, on April 24, 2025, the Director of Community Development made the draft ordinance available for public inspection in the Department of Community Development offices and supplied it at cost to all persons desiring a copy, at least ten days before a scheduled Planning Commission public hearing date in accordance with Section 9.196.020 of the Municipal Code; and WHEREAS, on May 8, 2025, the Planning Commission held a duly-noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning ZC 03-25-5781 and adopted a resolution recommending that the City Council adopt ZC 03-25-5781; and WHEREAS, on May 22,2025 the City gave public notice of the City Council public hearing for ZC 03-25-5781 by publishing the required notice in a newspaper of general circulation and posting the notice at City Hall; and WHEREAS, on May 28, 2025, the City Clerk made the ordinance and all relevant documents available for public inspection in the City Clerk’s office, at least five days before the scheduled City Council public-hearing date in accordance with Section 9.196.020 of the LFMC; and
WHEREAS, on June 3, 2025 the City Council held a noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning ZC 03-25-5781; and
WHEREAS, all legal prerequisites to the adoption of this ordinance have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
FOREST DOES ORDAIN AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The City Council hereby finds and determines that the Recitals above are true and correct and incorporated herein.

SECTION 2. CEQA. The City Council finds ZC 03-25-5781 is not subject to the California Environmental Quality Act ("CEQA") pursuant to the following sections of the State CEQA Guidelines:

Pursuant to State CEQA Guidelines section 15060(c)(2), an activity is not subject to CEQA if the activity will not result in a direct or reasonably Item: 8
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foreseeable indirect physical change in the environment. Here, ZC 03-25- 5781 will eliminate all cyber café regulations and amends regulations related to thrift stores. Neither of these actions cause a direct or reasonably indirect physical change in the environment because such actions do not authorize or prompt any development or physical changes to the environment. Thus, section 15060(c)(2) applies to ZC 03-25-5781 and no further action is therefore required.

Additionally, under State CEQA Guidelines section 15060(c)(3), an activity is not subject to CEQA if the activity is not a project as defined in Section 15378(a). Under Section 15378(a), a project is an action that has the potential for resulting in in a direct or reasonably foreseeable indirect physical change in the environment. As discussed above, ZC 03-25-5781 will eliminate all cyber café regulations and amends regulations related to thrift stores. Neither of these actions cause a direct or reasonably indirect physical change in the environment because such actions do not authorize or prompt any development or physical changes to the environment.

Therefore, ZC 03-25-5781 does not constitute a project as defined by CEQA and no further action is therefore required
ZC 03-25-5781 also qualifies for the common sense exemption under Section 15061(b)(3). Under Section 15061(b)(3), CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Here, the Ordinance does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment because it involves the removal of regulations for cyber cafes, and clarifications to regulations related to thrift stores and donation centers in accordance with California Assembly Bill 2632. Therefore, it can be seen with certainty that there is no possibility that ZC 03-25-5781 may have a significant effect on the environment. As a result, ZC 03-25-5781 is not subject to CEQA.

SECTION 3. General Plan. Based on the entire record before the City Council, and all written and oral evidence presented, the City Council hereby finds that this ordinance is consistent with the City’s adopted General Plan. Specifically, the ordinance implements the following General Plan implementation actions:
•LU-1b Review the standards provided in the Zoning Ordinance (Title 9 of the Lake Forest Municipal Code) and amend as necessary for consistency with Item: 8
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General Plan policies and desired uses consistent with the City’s General Plan land use designations.
•LU-2c Periodically review and amend (as needed) the Zoning Ordinance, City Subdivision Regulations, and Grading Regulations to provide consistency with new state legislation and court decisions. Review and amend Zoning Ordinance to clarify permitted and conditionally permitted uses in all districts.
•ED-3b Review, and update as necessary, zoning and other development regulations and application review and permitting process in order to ensure consistency with land use policies in this General Plan aimed at spurring job growth and economic development. Revisions may include increased flexibility regarding use types, business operations, site development standards, reduced parking standards near transit stations, or other changes intended to reduce impediments to development consistent with the goals of this General Plan.

SECTION 4. Code Amendment. Chapter 5.34 of the Lake Forest Municipal Code, titled “Cyber Cafés,” is hereby repealed in its entirety.

SECTION 5. The definitions for “Cyber Café” and “Internet Café” are hereby amended in their entirety from Section 9.04.030 (D) (Definitions) of the Lake Forest Municipal Code to the following:

Cyber Café: See “Digital Entertainment.”
Internet Café: See “Digital Entertainment.”
SECTION 6. Section 9.04.030(D) (Definitions) of the Lake Forest Municipal Code is hereby amended to add the following definitions:

Digital Entertainment: An establishment whose primary business is entertainment, that provides more than four computers and/or electronic devices to its users for compensation, including but not limited to memberships, for any or all of the following activities:
(1) Playing video games;
(2) Internet Access; and
(3) Access to other computer software programs.

The term “digital entertainment” shall also include a “cyber café,” “internet café,” and “Esports.” Digital entertainment does not include businesses where personal computer access is incidental to the permitted use, schools, educational tutoring, or public agencies.

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Esports: See “Digital Entertainment.”
SECTION 7. Subsection A of Section 9.72.090 (Land Use Matrix) and Section 9.73.065 (Mixed-Use Land Use Matrix) of the Lake Forest Municipal Code is hereby amended to delete the entry for “Cyber Café”.

SECTION 8. Subsection A of Section 9.72.090 (Land Use Matrix) of the Lake Forest Municipal Code is hereby amended to add the use for “Digital Entertainment” as follows:

Use C I PA UA CAN A1 OS
Digital Entertainment P X X P X X X
SECTION 9. Section 9.73.065 (Mixed-Use Land Use Matrix) of the Lake Forest Municipal Code is hereby amended to add the use for “Digital Entertainment” as follows:

Use MU 32 MU 43 MUO UI 25 UI 43
Digital Entertainment P P P P P
SECTION 10.Section 9.04.030 (D) (Definitions) of the Lake Forest Municipal Code is hereby amended to amend the definitions for “Donation Center, Attended” and “Thrift Store,” in their entirety, as follows:

Donation Center, Attended: An attended facility for the collection of re-usable goods for distribution, sale or reuse, that is not attached to or part of a thrift store.

Thrift Store: a retail store and related donation facilities engaged primarily in the sale of secondhand clothing, shoes, apparel, toys, and standard household goods, including furniture, fixtures, and small household appliances, and the collection of those goods for resale. “Thrift store” does not include the sale of large household appliances such as refrigerators or stoves, the sale of cars or anything automotive-related, pawnbrokers, attended donation centers, or donation collection boxes.

SECTION 11. Subsection A of Section 9.72.090 (Land Use Matrix) of the Lake Forest Municipal Code is hereby amended to amend the entry for “Thrift Store,” and amend footnote 11, in their entirety, as follows:

Use C I PA UA CAN A1 OS
Thrift Store P11 A1,11 X P11 X X U11
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Footnotes

1. The accessory use shall be incidental, related and clearly subordinate to the main use of the lot or building. Must not comprise more than 15% of the total floor area of principal use.
…

11. Subject to regulations in Section 9.146.200 (Thrift Stores).

SECTION 12. Section 9.73.065 (Mixed-Use Land Use Matrix) of the Lake Forest Municipal Code is hereby amended to amend the entry for “Thrift Store,” and amend footnote 10, in their entirety, as follows:

Use MU 32 MU 43 MUO UI 25 UI 43
Thrift Store P10 P10 P10 P10 P10
Footnotes

10. Subject to regulations in Section 9.146.200 (Thrift Stores).

SECTION 13. Title 9 of the Lake Forest Municipal Code is hereby amended to add Section 9.146.200 (Thrift Stores), to read in its entirety as follows:

9.146.200 Thrift Stores.

A. Purpose. The purpose of this section is to comply with California Government Code Section 65630 et seq., while properly regulating thrift stores to ensure compatibility with the surrounding neighborhood.

B.Applicability. The provisions of this Section shall apply to thrift stores, as defined in Section 9.04.030(D). This Section shall not apply to pawn shops, attended donation centers, and donation collection boxes, as defined in Section 9.04.030 (D).

C.Standards. All Thrift Stores shall conform to the following standards:

1. The delivery and storage of goods or donations must be conducted inside the building.

2. Donations can only be accepted during business hours.

3. The donation process must be supervised and operated by employees of the Thrift Store.

4. Any donated or discarded items left outside the building must be immediately removed.

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SECTION 14. The City Council’s actions are made upon review of the Planning Commission’s recommendation, the Staff Report, all oral and written comments, and the documentary evidence presented on the Ordinance.

SECTION 15. Effective Date. This ordinance takes effect 30 days following its adoption.

SECTION 16. Severability. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this ordinance are severable. The City Council declares that it would have adopted this ordinance irrespective of the invalidity of any portion thereof.

SECTION 17. Certification. The City Clerk is directed to certify to the adoption of this ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation available within the City of Lake Forest, and to post a certified copy of this ordinance, including the vote for and against the same, in the office of the City Clerk in accordance with California Government Code section 36933.

SECTION 18. Record of Proceedings. The documents and materials that constitute the record of proceedings on which this ordinance and the above findings are located at the City Clerk’s office at 100 Civic Center Drive, Lake Forest, CA 92630.

PASSED, APPROVED, AND ADOPTED this ______ day of _______, 2025.

SCOTT VOIGTS
MAYOR
ATTEST:

THY MERRITT

ACTING CITY CLERK
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APPROVED AS TO FORM:

MATTHEW E. RICHARDSON

CITY ATTORNEY

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Thy Merritt, Acting City Clerk of the City of Lake Forest, do hereby certify that the foregoing Ordinance No. _______ was duly introduced and placed upon its first reading at a regular meeting of the City Council on the ___ day of ________, 2025, and thereafter, said ordinance was duly adopted and passed at a regular meeting of the City Council on the ___ day of _____ 2025, by the following vote, to wit:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS

THY MERRITT

ACTING CITY CLERK
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Item: 8
78 AGENDA Item No. /(
0 AGENDA ITEM
DATE: MARCH 18, 2003
TO: CITY COUNCIL
FROM: THOMAS W. ALLEN

CITY ATTORNEY
GAYLE ACKERMAN, AICI °

DEVELOPMENT SERVICES DIRECTOR
INITIATED BY: JEREMY KROUT

AS IATE PLA ER
REVIEWED BY: RT C. DUNEK

C MANAGER
SUBJECT: CYBER CAFÉ REGULATIONS

RECOMMENDED ACTION
Introduce and approve for first reading Ordinance No. entitled AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING CHAPTER 5 OF THE LAKE FOREST

MUNICIPAL CODE ESTABLISHING LICENSING PROCEDURES AND
REGULATIONS FOR CYBER CAFES.

FISCAL IMPACT
There is minimal fiscal impact associated with the recommended action.

Item: 8
79 Agenda Item— Cyber Café Regulations
March 18, 2003

BACKGROUND
Cyber cafésare an emerging form of businessthat in many instancescaterto youth who areinterestedin playing computer/video games. Severalcities in Orange Countyhaveseenanincreasein businesslicenseapplicationsfor cybercafés.

There are three known cyber cafés currently operating in the City of Lake Forest.

Cybercaféstypically involve alargenumberof computersthatarelinkedto each other via LAN ( Local Area Networks) and to other sites via the internet. The computers arerented out on anhourly basisat nominal rates, typically $ 2.00-$3.00 perhour. As videogameplayappearsto bethepredominateactivity in these facilities, thetargetconsumeris by andlargebetween12-23yearsold. Thelow hourlyratesallowcustomerstoplaythegamesfor severalhoursatarelativelylow cost. In addition, thevideo gamesarebecomingprogressivelymoresophisticated, which in turn makescyber cafésamore popular form of entertainment. However, cyber café customers are not limited to video game enthusiasts. Many customer groupsincludestudentsor otherpeoplewhotakeadvantageof thehigh quality computersand fast internet connectionsthatmay otherwise be aninaccessibletool to assistthem in completing homework assignmentsor conducting research.

Althoughtheexistingcybercafésin LakeForesthavenot leadto increasedcrime, otherjurisdictions, suchasGardenGrove, Placentia, LosAlamitos, andseveral Los AngelesCountycities, havereportedexperiencinganescalationof minor crimessuchasloitering andcurfewviolations, andmajorcrimes, suchasfirearm and drug possession, gangviolence, fights andmurder. As a result, many cities haveenactedordinancesrequiring cyber cafésto obtain licenses, Conditional Use Permits (CUP' s), or other discretionary permits to allow suchause to operate. The purposeof thelicensesor permitsis to applycertainoperatingstandardsto the businessesso asto deter and ideally prevent criminal activity from occurring. The licenses or CUP' s regulate various aspects of a business' s operating characteristics includingthemaximumnumberof computersper squarefeetof floor area, security, andhoursof operation. Somecitieshaveenactedordinanceswith regulationsthatweresubsequentlychallengedby theaffectedcybercafébusiness owners. In thecourt'sreviewof theordinances, thejudgewashighly skepticalof someof thestandardsplacedonthecybercafébusinessesandstruckdownthe more stringent regulations. Staff has kept abreast on recent developments with regard to the court casesandincorporatedin the proposedordinance any findings or decisions handed down by the judge.

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80 Agenda Item— Cyber Café Regulations
March 18, 2003

The City doesnot currently require a licenseor permit to establisha cyber café in an existing building, nor does the City have operational standards for cyber cafés.

Cyber cafés are categorized by the Lake Forest Municipal Code as a " Service Business," which is permitted in all commercial and urban activity zoning districts.

The proposed cyber café ordinance does not limit the zoning districts in which cyber cafés are currently permitted, rather the ordinance allows the establishment of additional cyber cafés within the City of Lake Forest provided that these facilities are in compliance with certain design and operational standards. While the existing cyber cafés would not be exempt from being required to obtain a license, the ordinance would provide a six month grace period. During that time, the café could remain fully operational.

In developing the design and operational standards, staff was sensitive to the established cyber café businesses. Staff met with the owners or managers of the three existing cyber cafés to discuss the proposed ordinance and took their comments/ suggestions into consideration in the final proposed ordinance.

Therefore, the proposedordinance seeksto first andforemostlimit the potential of criminal activity while not placing overly burdensome requirements on existing businessesthat arein full compliance with City regulationsandhavenot been attributed to increased crime. However, in response to the rising concern of violence directly or indirectly related/ attributed to the business practices of certain cyber cafés in Los Angeles and Orange Counties, the proposed ordinance was drafted as a precautionary measure to ensure the continued safety of the community.

DISCUSSION
The proposed ordinance provides for a procedure whereby a person seeking to open a cyber café business would apply to the Development Services Department for a license. The application would include the details of the site and proposed operating plans. An annual license would be issued provided the applicant met the criteria established. Should the licensed cyber caféviolate any of the standardsof the ordinance, the license could be revoked.

The criterion were developed to regulate certain aspects of cyber café business practices that would most likely deter criminal activity. The regulations cover Item: 8
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March 18, 2003

severalareasincluding operational characteristics, interior configuration, exterior configuration andbuilding andsafetyissues.

The regulations pertaining to operational characteristicsinclude:

1. Minors (under18yearsof age) shallnotbepermittedto enteror remain in a Cyber Café during the following statedhours unless accompaniedby a parentor legal guardian:
a. Between8:00 a.m. and3:00 p.m., or after 10:00 p.m. on Monday through Thursday of each week.
b. Fridaybetween8:00a.m. and2:00p.m., or after 10:00 p.m. c. Saturday after 10:00 p.m.
d. Sundayafter 10:00 p.m.
e.

Theaboveweekdayhoursof restrictionshallnotapplyto
vacationdaysorschoolholidaysasestablishedby anypublic
school district or private school, kindergarten through twelfth grade, operating within the City of Lake Forest.
f. Noticeof thesehoursof restrictionfor minorsshallbepostedat the entrancein lettering of at least two (2) inches in size.

2. TheCyberCaféshallnotbeopento customers, patronsor any member of the public betweenthe hours of 2:00 a.m. and 8:00 a.m. on Saturdayand Sundayor betweenthe hours of 1:00 a.m. and 8:00 a.m.

Monday through Friday. Thereshall be no customersin or aboutthe premises during the hours that the business is closed.

3. No personshall be permitted to consumealcoholic beverageson the inside of the premises. The saleof cigarettesand alcohol on the premisesisprohibited. Nointoxicatedordisorderlypersonshallbe allowed to remain on the premises.

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4. Employees shall be at least 18 years of age. There shall be a minimum of one (1) employeemanagingthe Cyber Café during all working hours. The ratio of employees to customers shall be 1:30. During each employee' s working hours, the employee shall wear a badge identifying the businessandthe employee's full name.

5. The Chief of Police may require a specific Cyber Café operatorto provide a security guard(s) on the premisesin the eventthereare repeatedcalls for police servicesrelating to thepremisesand including, but not limited to, assaults, gangactivity, weapons offenses, disturbances of the peace andjuvenile crimes including truancy.

6. Any access to Adult- Oriented web sites or software, as Adult- Oriented is defined in Section 9.08.016 of this Code, is prohibited unless specifically licensed under Chapter 5.10 of this Code.

7. No gaming tournaments for cash prizes shall be permitted.

8. Under no circumstances shall electronic game machines, which includes computers and other amusement devices, be used for illegal gaming or gambling. The applicant shall be responsible for ensuring customers do not use any electronic game machine for illegal gaming or gambling.

Interior configuration regulations include:

1. A waiting areawith not less than eight (8) seatsshall be provided for customers waiting to use a computer. No outside waiting or seating area is licensed.

2. The establishment shall maintain and operate a camera/ video surveillance system during all business hours. The system shall cover the entire interior of the premises and all entrances to and exits from the establishment. Tapes/disks shall be kept a minimum of seventy- two ( 72) hours. The owner shall authorize the City to inspect the tapes/ disks during business hours. A sign shall be posted inside and at Item: 8
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the entrancesto the establishmentindicating that thepremisesare under camera/ video surveillance.

3. Interior lighting shallbemaintainedat aminimumof thirty (30) foot- candles of light.

4. No pool tablesor otheramusementdevicesnot directly relatedto the Internetandsimilarcomputerdevicesshallbepermittedin the business.

5. No electronic game machine, computer or other type of station shall be located in anyprivate area, room or booth.

6. Userratesandotherfeesmustbeconspicuouslypostedonthe premises.

7. Thereshallbe aminimumof onelavatoryfacility accessibleto customers and employees.

8. Any booth or individual computer use area within the business shall bevisiblefromacontinuousandaccessiblemainaislein apublic portion of thecafe, andshallnotbe obscuredby anydoor, curtain, wall, two-waymirroror otherdevicewhichwouldprohibitaperson fromseeingtheentireinteriorofthebooth/individualviewingarea from themainaisle. Further, no oneshallmaintainany
booth/individualviewingareain anyconfigurationunlesstheentire interior whereinthecomputerthatis beingusedis visible from one main aisle.

No doorsarepermittedonabooth/individualviewingarea. No
partiallyor fully enclosedbooth/individualviewingareasorpartially or fully concealedbooth/individualviewing areasshallbemaintained.

Regulationsrelevantto theexteriorconfigurationof thebuildinginclude:

1. Window areasshallnotbe coveredor madeopaquein anyway, excepting during daylight hours when blinds or other equivalent window coverings may be used.

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2. Lighting levels within sixty feet (60') of thebusinessandin all required parking areas shall be maintained at a minimum of one ( 1) foot- candle of light.

3. The applicant shall provide adequate trash receptacles both inside and outside of the building. The applicant shall keepthe outside of the business, including the parking lot, free of litter, trashand debris.

Building and safety regulations include:

1. Occupancyshall not exceedthat requiredunder the Uniform Building Code and Uniform Fire Code, and the maximum occupancy load shall be posted at the main entrance.

2. The owner shall submit and receive approval of a fire exit plan from the Orange County Fire Authority. The plan shall address all existing requirements of the Uniform Building Code and Uniform Fire Code.

This includes, but is not limited to, providing an exit plan showing equipment location, aisle locations and dimensioned widths, and having approved exit doors and panic hardware.

Finally, the proposedordinance setsforth a procedurewherein the City Manager can revoke a cyber café license in the event that the business operates in a manner that violates any provision of the proposed ordinance. The proposed ordinance also contains appeal provisions should an application be denied or the City Manager deem it necessary to revoke a license.

Some cities have experienced increased levels of criminal activity attributed to cyber cafés and have consequently adopted more stringent ordinances. For example, some ordinances require cyber cafés to obtain a CUP, modify the buildings in which the cyber cafés are located to install sound proofing, place a security guard on the business premises during certain days of the week, and to maintain a patron logging system to record information on each customer.

However, as previously mentioned, the court has highly scrutinized and struck down sections of ordinances with similar stringent regulations. Staff believes the proposed ordinance reflects an appropriate balance between not placing unnecessary and overly onerous requirements on a business and ensuring that Item: 8
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establishedandfuturecybercafésoperatein a safemanneraccordingto standards that aremeant to prevent criminal activity from occurring.

ATTACHMENTS

1.) Ordinance establishing cyber caféregulations.

2.) Compilation of articles pertaining to cyber cafés.

F: UKrout\ projects\ cyber_ cafes\ cc_ staff report. doc Item: 8
86 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF LAKE FOREST,
CALIFORNIA, AMENDING CHAPTER 5 OF

THE LAKE FOREST MUNICIPAL CODE

ESTABLISHING LICENSING PROCEDURES
AND REGULATIONS FOR CYBER CAFÉS

THE CITY COUNCIL OF THE CITY OF LAKE FOREST DOES
ORDAIN AS FOLLOWS:

SECTION 1. The City Council of the City of Lake Forest hereby finds, determines and declares as follows:

A. The activities of Cyber Cafés are frequently associated with detrimental impacts to the surrounding area. Neighboring cities have experienced violent criminal activity associated with Cyber Cafés. Neighboring jurisdictions havereported incidents including but not limited to, shootings, stabbings, assaults, drug andgambling offenses, truancy, curfew violations, loitering and gang related offenses.

1. The City Council of the City of GardenGrove received a report dated June 18, 2002, from the Garden Grove
Police Department documenting a number of crimes and
gang related activities occurring in and about Cyber
Cafés within the City of Garden Grove. The report
documented that a number of crime incidents including,
but not limited to, felonious assaults, probation violations and possession of illegal drugs, have occurred at Cyber Café business locations.

2. Gang related incidents have been occurring in association with Cyber Cafés. According to a Garden Grove gang
unit officer, a Cyber Café customer was stabbed after
IRV 1425345 v6
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87 beingrushedby a groupof suspectedgangmemberswho
tracked the victim down from another Cyber Café.

3. On December30, 2001, a 20-year-old man was murdered while standing outside a Garden Grove Cyber Café.

4. On June8, 2002, a 14-year-old was followed from a GardenGroveCyberCaféandfatally shot.

5. City of Costa Mesa Police Lt. Ron Smith has stated:

The violence stemslargely from the competitivenessof
the computer games spilling over into the street" and
gang members have been known to travel from one
Cyber Café to another to settle scores or avenge insults sent via the Internet." Lt. Smith summarized the
problems encountered by other law enforcement agencies
in Southern California from Cyber Cafés as " murder,
drive-by shootings, assaults, organizedcrime, money
laundering, identitytheft, computerhacking, gambling,
loitering, curfew violations andnoise disturbances."
B. The City Council finds, determines and declares that the current threatto thepublic health, safetyandwelfareof theCity andits citizens necessitatesthe enactmentof this Ordinance to help deterandpreventcrimesandcriminal activity from occurringat and around Cyber Cafes.

C. The City Council further finds that this Ordinance constitutes a matter of Citywide importance and is not directed towards nor targetedat anyparticularparcelof property, anyparticular businessor any proposedoccupant.

SECTION 2. Chapter5.34 entitled "CyberCafés" isherebyaddedto the Lake Forest Municipal Code, to read as follows:

5. 34. 010 Definitions.

A. " CyberCafé" shallmeananestablishmentthatprovidesmore than six ( 6) computers and/ or other electronic devices for ac- cessto the world wide web, Internet, e-mail, video gamesor IRV# 25345 v6
2-
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88 computer software programs which are networked ( via LAN or WAN or otherwise) or which function as a client/ server pro- gram, and which seeks compensation, in any form, from users.

Cyber Café is synonymous with a personal computer (" PC") café, Internet café and cyber center, but does not include a cy- ber learning center as defined herein or professional duplication and printing service establishments that provide busi-
nesses/individuals with services including copying, quick print- ing services, and computer rental.

B. " Cyber Learning Center" shall mean an establishment that pro- vides computer access which is operated by the City of Lake Forest, a school district, a college district, or a private institu- tion of learning which provides classes in computer instruction, or a non-profit organization, without payment of compensation in any form ( other than school tuition).

5.34. 020 Cyber Café license required.

It is unlawful for any person to engage in, conduct or carry on, in or upon any premises or real property located within the City, the activities of a Cyber Café, unless such person has been granted a valid license pursuant to the provisions of this Chapter. A separate license shall be required for each location within the City where a Cyber Café is to be established.

Cyber Learning Centers, shall be exempt from the foregoing license requirements.

5. 34. 030 Term of license.

The term of a Cyber Café license, unless sooner suspended or revoked, shall be one year.

5.34. 040 Renewal of license.

A Cyber Café license, issued pursuant to the provisions of this Chapter, that has not been suspended or revoked, may be renewed, upon payment of the renewal application fee, for aperiod not to exceedone year on written application to the Director of Development Services made at least sixty ( 60) days prior to the expiration date of the current valid license. This IRV# 25345 v6 3-
Item: 8
89 application for renewal of a license shall contain all of the information requiredby Section5.34.050of thisChapterandshallbeprocessedin accordance with the provisions of this Chapter.

5.34. 050 License application and issuance.

A. Any persondesiringto obtainalicense, or renewanexisting license, to operate a Cyber Café shall file a written application with the Director of Development Services or designee thereof Theapplicationshallbesignedunderthepenaltyof perjury.

Prior to submitting the application, a nonrefundable fee, in an amount establishedby resolution of the City Council, shall be paidto the City. TheCity shallissueareceiptshowingthat
suchapplicationor renewalfeehasbeenpaid. Thereceipt, or a copy thereof, shall be suppliedby the applicant to the Director of Development Services at the rime such application is filed.

The license issuance or renewal fee required under this Chapter shall be in addition to any other license, fee or license required under this Code.

B. Neither the filing of an application for a license or renewal thereof, nor payment of an application or renewal fee, shall authorize the operation of a Cyber Café until such license has been granted or renewed.

C. Each applicant for a Cyber Café license, or renewal thereof, shall furnish the following information:

1. The present or proposed address where the business is to be conducted;

2. The full and true name under which the business will be conducted;

3. Thefull andtruenameandanyothernamesusedby the
applicant;

4. The present residence and business address and telephone numbers of the applicant;
IRV# 25345 v6 4-
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90 5. Each residence and business address of the applicant for the five- year period immediately precedingthe dateof
filing of the application andthe inclusive datesof each such address;

6. The California driver' s license or identification number of the applicant;

7. Acceptable written proof that the applicantis at least eighteenyears of age;

8. A precisedescription of the servicesto beprovided;

9. A detailed site and floor plan of the proposed business, depicting the building and unit proposed and including
interior dimensions and off- street parking spacesrequired by the City' s zoning code;

10. A detailed description of the food and beverage service, if any, that will be offered to patrons;

11. The dates and hours during which the Cyber Café is desired to be conducted and the fee to be charged;

12. The name(s) of the person(s) responsiblefor the operation, management, and supervision of the Cyber
Café; and

13. A statement as to whether the applicant, owner, or any person to be responsible for the operation, management, and supervision of the Cyber Cafe has, within the past
five ( 5) years, had any permit or license issued in
conjunction with a Cyber Cafe and whether during that
period the permit or license was suspendedor revoked.

If so, then the application shall provide the name of the issuing agency and an explanation of the suspension or
revocation.

D. The applicant shall present the Application to the Director of Development Services together with the information and
IRV# 25345 v6 5-
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91 supporting documentation required by Subsection C of this Section. A copy of the application shall be distributed to the City' splanning andbuilding departmentsandthe Orange
CountySheriffDepartmentandFire Authority for review.

E. When any changeoccursregarding the written information required by Subsection C of this Section to be included in the application, theapplicantor licenseholder, asthecasemaybe, shall give written notification of such change to the Director of Development Services within five ( 5) business days of such change.

F. The Director of Development Services shall have a reasonable time, not to exceed forty- five ( 45) days to investigate the facts set forth in the application and to receive comments from the City'splanningandbuildingdepartments, theOrangeCounty
SheriffsDepartmentandtheOrangeCountyFireAuthority.

The Director of Development Services shall, within 45 days after the dateof the filing of the application, grant the license, or renewalthereof, only if it is foundthatall of thefollowing requirements have been met:

1. The required feeshavebeenpaid;

2. The application, and all information contained therein, conform in all respectsto the provisions of this Chapter;

3. The applicant hasnot knowingly madea material
misrepresentation of fact in the application;

4. TheCyberCafé, asproposed, would complywith this Chapterandall otherapplicablecity, countyandstate
lawsincluding, but notlimited to, health, zoning, fire and safety requirements and standards;

5. Theapplicantis atleasteighteen (18) yearsof age;

6. TheCyberCafésiteandfloor planhavebeenreviewed
by theCity'splanningandbuilding departmentsandthe
OrangeCountyFireAuthority which haveapprovedthe
IRV# 25345 v6
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92 same as well as all fire and panic safety equipment
required to be installed; all requirements of the
Americans with Disabilities Act have been satisfied; and that the maximum occupancy has been established, will
be posted and will not likely be exceeded based on the
floor plan.

7. The Director of Development Services has not received evidence that the applicant has, within the previous five 5) years, had any license or entitlement to operate a
Cyber Café revoked due to the applicant' s commission of a crime or violation of conditions of approval applicable to a Cyber Café; provided, however, a Cyber Café license may be grantedsubject to additional conditions designed to preclude a recurrence of the events or activities
causing the prior license revocation.

G. If the Director of Development Services does not find that all of the requirements of Subsection F of this Section have been met, the application shall be denied.

1. In the event that an application for a license or renewal thereof is denied, written notice of the denial shall be given within ten ( 10) business days to the applicant,
specifying the ground( s) of the denial and a description of the hearing rights provided by Section 2 below.

Notice of denial of the application may be personally
served or served by first- class postage prepaid and
addressed to the applicant at the address set forth in the application. Mailed notice shall be deemed received
three (3) days after mailing.

2. The decision of the Development Services Director may be appealedto the city managerby filing a written notice requesting a hearing within ten ( 10) days of the decision of the Development Services Director. The city manager
may hear the appeal or assign it to a hearing officer ( for purposes of this section, the term hearing officer shall mean the city manager or a hearing officer appointed by the city manager).

IRV# 25345 v6 7-
Item: 8
93 a. Thehearingshallbeconductedwithin forty-five (45) days of the request.
b. Thehearingofficer shallconductthehearingunder
suchrulesof procedureasareappropriateto quasi-
judicial proceedings, provided that the
applicant/licenseeand the City shall be entitled to
present relevant evidence, testify under oath, and call witnesseswho shalltestifyunderoath. TheHearing
officer shall not bebound by the statutory rules of
evidencein thehearing, exceptthathearsayevidence
may not be the sole basis for the determination of the
hearing officer. The City shall have the initial burden of proof. Thehearingofficer shallcauseatranscript
of thehearingto beprepared.
c. At the conclusion of the hearing, the hearing officer shall decidewhether the groundsfor denial,
revocation or non- renewal exist. Within ten ( 10) days after the conclusion of the hearing, the hearing officer shall file with the City Clerk, together with the
transcript of the hearing, a written decision, supported by written findings based on the evidence submitted,
anda statementof his/herorder. A copyof such
decisionshallbeforwardedby certifiedmail, postage
prepaid, to the licenseeon the day it is filed with the City Clerk. The decision of the hearing officer shall
becomeeffectivethree (3) daysafterits mailing to the
applicant/licensee, unlesstimely appealedasprovided
in the following Section.

H. The decision of the hearingofficer shall be appealableto the City Councilby thefiling of a written appealwith theCity Clerk within fifteen (15) daysfollowing thedayof mailing of thehearingofficer'sdecisionandpayingthe feefor appeals
provided under this Code. All such appeals shall be filed with theCity Clerkandshallbepublic records. TheCity Council shall, at adulynoticedmeetingwithin thirty (30) daysfrom the datethewritten appealwasfiled, independentlyreview the
IRV# 25345 v6
8-
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94 entire record, including the transcript of thehearing andany oral or written argumentswhich may be offered to the City Council by the appellant andrespondent. No additional
testimony or other evidenceshall bereceivedor consideredby the City Council. At the conclusion of the review, a majority of the City Council members present shall decide to sustain the decision, modify the decision, or order the decisionstricken and issuesuchorder asthe City Council finds is supportedby the entire record. The action of the City Council shall be final and conclusive, shall be rendered in writing within ten days, and such written decision shall be immediately mailed or delivered to the appellant( s) and there shall be no additional right of appeal or reconsideration.

L Notwithstanding any provisions in this chapter regarding the occurrence of any action within a specified period of time, the licensee/ applicant may request additional time beyond that provided or may request a continuance regarding any decision or consideration by the City of the pending appeal. Extensions of time sought by applicants shall not be considered delay on the part of the City or constitute failure by the City to provide for prompt decisions on applications.

J. The time for a court challengeto a decisionof the City Council is governed by California Code of Civil Procedure § 1094. 8. andnotice of the City Council' sdecision andits findings shall include citation to California Code of Civil Procedure § 1094. 8.

5.34. 060 Transfer of license.

Unless prior application is made, thereafter approved, and a license issued thereon, upon the sale or transfer of any interest in a Cyber Café, the license shall immediately become null and void. A new application shall be made and fee paid by any person desiring to own or operate the Cyber Café.

Any application involving the sale or transfer of any interest in an existing Cyber Café, as well as any license which may thereafter be granted, shall be subject to the provisions of this Chapter.

IRV# 25345 v6 9-
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95 5.34.070 Change in location, floor plan or business name.

A. A holderof avalid CyberCafélicenseshallnotify the DevelopmentServicesDirector, in writing, of anyproposed changein thebusinesslocation, floor plan or businessnameat least thirty ( 30) daysprior to suchchange.

B. Nothing in this Section shall excuse the owner of a Cyber Café fromobtainingallotherapprovalsnecessaryto changea
location, floor plan or businessname.

5. 34. 080 License revocation.

A. If theCityManagerfindsthatanypersonholdingaCity-issued CyberCafélicensehasviolatedorallowedtheviolationof any
of the provisions of this Chapter or has conducted business in a manner that would havebeengrounds for licensedenial, the licensemayberevokedfollowing noticeandahearing.

B. No revocation shall become effective until the license holder hasbeennotified in writing of theright to ahearingpursuantto the provisions of Section 5.34.050 G.2.a. and .050 H.- J. of this Code. Notice of the pendingrevocation andright to appeal shallbe givento thelicenseholdereitherby personaldelivery or registered mail, addressed to the license holder at the address set forth in the license application. Mailed notice shall be deemedreceivedthree (3) daysaftermailing.

C. If arequestfor hearingis filed within 7 daysfrom thenotice provided in B. above, the revocation shall be stayed and shall becomeeffectiveonlyuponanadversedecisionof thecity
manager/hearingofficer, unlessimmediaterevocationpending thehearingisnecessarydueto animmediatethreattothepublic health, safety or welfare. Otherwise, the revocation shall becomeeffectiveuponexpirationof theappealperiod.

IRV# 25345 v6
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Item: 8
96 5.34. 090 Regulations and Hours of Operation.

A. Minors (under 18years of age) shallnot bepermitted to enter or remain in a Cyber Café during the following stated hours unless accompanied by a parent or legal guardian: .
i. Between 8:00 a.m. and 3:00 p.m., or after 10:00 p.m. on Monday through Thursdayof eachweek;
ii. Friday between 8:00 a.m. and2:00 p.m., or after 10:00 p. m.
iii. Saturday after 10:00 p.m.
iv. Sunday after 10:00 p.m.
v. The aboveweekdayhours of restriction shall not apply to vacation days or school holidays as established by any
public school district or private school, kindergarten
through twelfth grade, operating within the City of Lake Forest.
vi. Notice of these hours of restriction for minors shall be posted at the entrance in lettering of at least two ( 2) inches in size.

B. The Cyber Café shall not be open to customers, patrons or any member of the public betweenthehours of 2:00 a.m. and 8:00 a.m. on SaturdayandSundayor betweenthehoursof 1:00 a.m. and 8:00 a.m. Monday through Friday. There shall be no customersin or about the premisesduring the hours that the business is closed.

C. A waiting areawith not less thaneight (8) seatsshall be provided for customerswaiting to usea computer. No outside waiting or seatingareais licensed.

D. No personshall be permitted to consumealcoholic beverages on the inside of the premises. The sale of cigarettes and alcohol IRV# 25345 v6 11-
Item: 8
97 onthepremisesis prohibited. No intoxicatedor disorderly person shall be allowed to remain on the premises.

E. Employeesshall be at least 18yearsof age. There shall be a minimumof one (1) employeemanagingtheCyberCaféduring
all working hours. The ratio of employeesto customersshall be 1:30. During eachemployee'sworkinghours, theemployee shall wear abadgeidentifying the businessandthe employee's full name.

F. Occupancyshall not exceedthat required under the Uniform Building Code and Uniform Fire Code, and the maximum
occupancyload shall be postedat the main entrance.

G. The establishment shall maintain and operate a camera/video surveillance systemduring all businesshours. The systemshall cover the entire interior of thepremisesandall entrancesto and exits from the establishment. Tapes/disks shall be kept a minimum of seventy-two ( 72) hours. The owner shall license the City to inspectthetapes/disksduringbusinesshours. A sign shall be posted inside and at the entrances to the establishmentindicating that the premisesareunder
camera/ video surveillance.

H. Theownershallsubmitandreceiveapprovalof a fire exitplan from theOrangeCountyFireAuthority. Theplan shalladdress all existingrequirementsof theUniform Building Codeand
Uniform Fire Code. This includes, but is not limited to, providing an exit plan showing equipment location, aisle locationsanddimensionedwidths, andhavingapprovedexit
doors andpanic hardware.

Windowareasshallnotbecoveredormadeopaquein anyway,
excepting during daylight hourswhen blinds or other
equivalent window coverings may be used.

J. TheChief of PolicemayrequireaspecificCyberCaféoperator to provide a security guard(s) on the premisesin the event there arerepeatedcallsfor policeservicesrelatingto thepremises andincluding, butnotlimitedto, assaults, gangactivity,
IRV# 25345 v6
12-
Item: 8
98 weapons offenses, disturbances of the peace andjuvenile crimes including truancy.

K. Lighting levelswithin sixty feet (60') of thebusinessandin all requiredparkingareasshallbemaintainedat aminimumof one
1) foot-candleof light. Interior lighting shallbe maintained at aminimum of thirty ( 30) foot-candlesof light.

L. Any accessto Adult- Oriented web sitesor software, asAdult- Oriented is defined in Section 9.08.016 of this Code, is prohibitedunlessspecificallylicensedunderChapter5.10of
this Code.

M. No pool tablesor other amusementdevicesnot directly related to the Internet and similar computer devices shall be permitted in the business.

N. No gaming tournamentsfor cashprizes shallbe permitted.

O. No electronic gamemachine, computeror othertype of station shall be located in any private area, room or booth.

P. User rates and other fees must be conspicuously posted on the premises.

Q. Under no circumstancesshall electronic gamemachines, which includes computers and other amusement devices, be used for illegal gaming or gambling. The applicant shall be responsible for ensuring customers do not use any electronic game machine for illegal gaming or gambling.

R. The applicant shall provide adequatetrashreceptaclesboth inside and outside of the building. The applicant shall keep the outside of the business, including the parking lot, free of litter, trash and debris.

S. There shall be a minimum of one lavatory facility accessible to customers and employees.

IRV# 25345 v6 13-
Item: 8
99 T. Any booth or individual computer use area within the business shall be visible from a continuous and accessible main aisle in a public portion of the cafe, and shall not be obscuredby any door, curtain, wall, two-way mirror or other device which would prohibit a person from seeing the entire interior of the booth/ individual viewing area from the main aisle. Further, no one shall maintain any booth/individual viewing areain any configuration unless the entire interior wherein the computer that is being used is visible from one main aisle.

No doorsarepermittedonabooth/individualviewingarea. No partially or fully enclosedbooth/individual viewing areasor partially or fully concealedbooth/individual viewing areasshall be maintained.

5.34. 100 Abatement of nuisance activities.

Any CyberCaféoperated, conductedor maintainedcontraryto the provisions of this Chapter shall be andhereby is declaredto be unlawful and apublicnuisance, andtheCity may, in additionto or in lieu of anyother remedy, commencean action or proceedingfor the abatement, removal or enjoymentthereof, andmaytakesuchotherstepsandmayapplyto such court or courts as may have jurisdiction to grant such relief to abate or removesuchestablishmentandrestrainandenjoinanypersonfrom operating, conductingor maintainingaCyberCafécontraryto theprovisions of this Chapter.

5. 34. 110 Penalties.

It shallbeunlawful for anypersonto violateanyprovisionor to fail to complywith anyof therequirementsof thisChapter. Anypersonviolating, permitting or causingthe violation this Chapter5.34 shall be deemedguilty of amisdemeanoranduponconvictionthereofshallbepunishedassetforth in Section1.01.220of thisCode, or anysuccessorprovisionthereto. A violation of any other provision of this Chapter shall be deemedto be an infractionand, uponconvictionthereof, shallbepunishedassetforthin Section1.01.220of thisCode. Eachpersonshallbedeemedguiltyof a separateoffensefor eachandeveryday, oranyportionthereof, during which any violation of any provision of this Chapteris committed, continued or permittedby suchpersonandshallbedeemedpunishablethereforas provided in this Section.

IRV# 25345 v6
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Item: 8
100

5. 34. 120 Existing Cyber Cafes.

Any existingCyberCafélegally operatingon (inserteffectivedateof ordinance), 2003, shall have until ( insert date 6 months later), 2003, to comply with this Ordinance.

5. 34. 130 Fees.

The City Council shall, by resolution, seta fee for application for a Cyber Café license. Until such fee is set, the application fee shall be the minimum fee currently establishedfor any land usecertificate application.

SECTION 3. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declaresthat it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declaredinvalid or unconstitutional.

SECTION 4. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published as required by law.

PASSED AND APPROVED this day of 2003.

Richard Dixon, Mayor
ATTEST:

Sherry A. F. Wentz, City Clerk
APPROVED AS TO FORM:

Thomas W. Allen, City Attorney
IRV# 25345 v6 15-
Item: 8
101

STATE OF CALIFORNIA

COUNTY OF ORANGE

CITY OF LAKE FOREST
I, Sherry A. F. Wentz, City Clerk of the City of Lake Forest, do hereby certify that the foregoing Ordinance No. was regularly introducedandplaceduponitsfirstreadingataregularmeetingof theCity Council on the day of That thereafter, said
Ordinancewasduly adoptedandpassedat a regularmeetingof the City Council on the day of 2003, by the following vote, to
wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

Sherry A. F. Wentz, City Clerk
IRV# 25345 v6
16-
Item: 8
102

Local 4 Friday.28, 2003 ORAN• OUNTY The orare County Register Judge criti cal of Garden. Grove cybercafe law
He gives both sides more time to answer
cybercafe owners by forcing
eras act as deterrents to vie- pipe in a car. ... These aren' t Choate asked. business owners to gather evi- lent crimes. But Choate fired violent crimes. What do they Despite the criticisms, his questions before ruling on whether deuce, which is a police re- back: " There was an assault have to do with cybercafes?" Shaw said he' s certain that the City can require cameras and guards. sponsibility that happened- at a cybercafe Choate said. judge believed the city demon- Two cybercafe owners sued where there were nine cam- The judge noted that the stratedthe needfor the ordi- Br KATHERINE NGUYEN the plaintiffs more time to re- the city in August and got the eras - that wasn't prevented city's two cybercafe-related nance and that the judge will THE ORANGE COUNTY REGISTER spond to his questions before court to temporarily block the now, was it?" deaths last summer occurred uphold the city' s rules. Choate he makes a ruling. city from enacting one of The judge also picked apart outside of the businesses. said he will make his final nil- A Superior Court judge in- Judge Dennis S. Choate Orange County' s strictest cy- the Police Department' s cy- " I agree, there was a screw- ing after March 14. heated Thursday that he still said many of the city'
s re- bercafe ordinances. bercafe crime statistics. driver in someone' s head, but has concerns with Garden quirements, such as security City Attorney John Shaw " I see here a curfew vio- if it happened outside, how Co NTA CT THE WRITER:

Grove' s cybercafe regulations, guards and video cameras at argued Thursday that the se- lation listed as a crime, an ar- can 30 guards and 10 cameras 714) 445- 6685 or but he gave city officials and cybercafes,
pose
a burden on curity guards and video cam- rest for possession of a meth inside have prevented that?" knauyen@ocreyister. com n
rY
f9
Item: 8
103

myorangecounty communities Page 1 of 4
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Feb. 27, 2003
Additions &
Corrections LOCal
Click here to submit R011
f7rManal Vanquishing virtual stereotypes
additions or corrections spec[
0 Send a- card to this page AI,
0 Games By PATRICK VUONG S
rip The Placentia News Times Join the Discussion
On 0 Get our newsletters t` "
0 Get Directions Edward Kim treats all his customers like his siblings. He Feedback
d Get a map greets them by name, trading street handshakes with college el Yellow pages kids andpatting youngsterson their headsasthey passby.p g In return, they treat him like a cool older brother.

E- mail to a friend
J
ili
Site map
aboutmvQC.com They'reinvitedto loungeonthecouchesandsipsodasafteraharddayat school,to plopContact us down in front of a largeTV andwatcha movie or join in a virtual tournamenton the rowsAdvertise with us Terms of use and rows of computer screens. Dch
Privacy policy
Kim' s businessis InternetPC Xtreme,a cybercafe.As oneof threeco-owners,he saidthe Plugins needed
family atmospheremakeshisbusinessfeellike agiantliving room. o Quicktime t
Flash But he prefers to call it a LAN center. t ,
0 Windows
Mediaplayer LANstandsforLocalAreaNetwork,whichisagroupofcomputersinabuildingor Shockwave buildings sharing a communications line or wireless link. The distinction is important for Kim, 26, and his partners for two reasons.

We don't servecoffee, sotechnically we'renot a cafe," he said. "And cybercafehassucha negative connotation. We prefer to be calleda LAN centerbecausethat's what we are." Kimsaidthemisconceptionsabouthisindustrygrewrampantthroughoutthecountylast year after severalhomicidesandassaultstook placenearGardenGrove establishments. The backlash,hesaid,resultedinadropinhisbusiness, Placentiadraftingnew,strictcybercafe lawsthattheCity Councilwill considerTuesdayandtheperpetuationof thestereotypethat all Internet portals aremagnetsfor gangs.

Whenit hitthenews, itmademecringe," Kimsaid. "Theymadeit soundsonaughty. (The crime)hasmoretodowiththecityit'sinandtheowners. EveryLANshopshouldn't be held accountable for one or two bad incidents.
http:// www. myoc. com/ community/ placentia/ news/ 022703p1ac_ tech. shtml 3/ 6/ 2003 Item: 8
104

myorangecounty communities Page 2 of 4
If there'sashootingata7-Eleven," Kim said, "you'renotgoingto shutdownall the convenience stores because of it."
He addedthat onecannotcomparea cybercafein GardenGrove,with nearly 170,000 residents, to one in Placentia, with a population of 47,000.

Yorba Linda resident Scott McClelland admitted he had false impressions of cybercafes until his 19-year-oldson,Christian--aregularcustomerof InternetPCXtreme-- invited himalong. McClellandsaidhefoundthebusinesstobeapositivehangoutfor teensand young adults.

Someof thesekids could comehometo an emptyhouse," hesaid, "or they can go thereto playsomegamesandgetasenseof communityataplacewheretheowneriswatchingout for them."
Kim' s spacious LAN center has about 45 top- of- the-line computers that offer Internet access,word-processingprogramsandinteractivegamessuchas "Counterstrike," which linksplayersfromaroundtheworldto face-off aseitherterroristsorspecialmilitary forces.

For his hungry or parchedclientele-- which is ethnically andsocially diverse andranges frompreteensto adults --thereis ashelfof candybarsandacounterstackedwith chilled sodas at the front of the store. The sofas, TVs and computers are in the back.

Customerssaidthey like the living- room atmospherebecauseit's a safeenvironmentrun by owners who want to befriend their customers and not just seethem as walking wallets.

Unlike in other cities, there have been no major crimes at the two cybercafes in Placentia-- Internet PC Xtreme on Bradford Avenue and Red Zone on Yorba Linda Boulevard-- Detective Corrine Loomis of the Placentia Police Department said.

Three cyber businesses opened their doors in town within three months in 2001, but one has closed its doors.

We have had no incidents at either of our cybercafes," Loomis said. "Everything is quiet with themsincethey havecomeinto the city andtherehaven't beenany problems." I feel safe here," said regular customer Vlad Popescu, 15, a Valencia High School sophomore.

Adam Dolan, an 18-year-old Placentiaresident,agreed.

Otherplaces,theyjust let you play your gamesandtakeyour money," Dolan said. "Here, they want to getto know you andplay with you andmakeyou comeback." A Fullerton College freshman, Dolan said he spends almost 12 hours a day, six times a week at InternetPCXtreme, wherehe goesto play computergames,write e-mails and completehomework online or on paper. His parentsarefine with his long visits, he said, because they know exactly where he is at all time.

Kim hasencouragedhis younger customersto usehis computersfor schoolassignments.

He said several college students who didn' t have a career path are now majoring in http:// www. myoc. com/ community/ placentia/ news/ 022703p1ac_ tech. shtml 3/ 6/ 2003 Item: 8
105

myorangecounty communities Page 3 of 4
computersciencebecauseof their interactionathis shop.

Also, Kim andhis partners-- JustinChangandRon Kwan, all from Torrance-- plan to offer community outreachprograms,suchasclassesfor seniorcitizens on how to usethe Internet.

Hisstoreopenedin June2001,followingaturn-of-the-centuryfadthatsawthousandspop up throughout the world. The Cybercafe Search Engine, an online database, lists more than 6,300 cybercafes in 169 countries that have registered with the site. It includes 500 such establishments in America.

In Placentia,the City Council put a moratoriumon new cybercafeslastMarch andextended it in JanuarythroughFebruary2004. Cityofficialssaidtheywantedto haltthespreadof the businesses, fearingnewbusinesstrendwouldattractgangsandviolence. Theysaidtheban wouldgivethemtimetoputrulesin place,afterseeingwhatGardenGroveapproved.

Anaheim, Cypress,FountainValley, La Habra,Los Alamitos and SantaAna havealso adopted regulations on these types of businesses, while Orange has a ban on new Internet centers.

KimsaidhehopesPlacentiaofficialswill seebeyondthestereotypesofhisindustryand amendtheproposedlawto" grandfather"thetwo existingcybercafes, exemptingthemfrom the tighter laws.

An earlierdraftof Placentia'srulescalledfor strongrestrictions,suchaslimiting operating hoursandpostingasecurityguardduringcertaintimes. Butthoserequirementsarebeing amendedbycitystaff,largelybecauseofa100-pluscrowdof loyalcustomers,parentsand communityleaderswhostretchedaDecemberCity Councilmeetingto nearlyfivehours while speaking in support of the cybercafes.

If thoseproposalsweren't withdrawn," Kim said, "we would havecloseddown without a doubt."
Hesaidwith profitsdwindlingbecauseof theweakeconomyandcustomersfearingtheir storewouldbeshutdown,theexpendituresfor a securityguardwouldbecrippling,as wouldclosingtheshopat2or 3a.m. --atimewhenhegetsthemostbusinessfromcollege studentsdoing last-minute assignmentsor playing games.

If theygrandfatherusin," Kim said,"it'll putusateaseandmakecustomersfeelconfident that we' ll be around."
Another proposedrule is theremoval of opaquestorefrontwindows, which critics havesaid preventpolice from seeinginside. Kim saidthe coveredwindows areneededfor his store, whichfaceswest, to blockoutthesettingsun,preventingglareoff thecomputermonitors andto keepthe storecool during hot summers.

Otherssayit providestheneededatmosphere,likethedimlightinginmovietheaters.

McClelland agrees with Kim on the matter.

Inside,it'squiteilluminated," hesaid. "It'seasytoseeacrosstheroom; it'sverywell http:// www. myoc. com/ community/ placentia/ news/ 022703plac_ tech. shtml 3/ 6/ 2003 Item: 8
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myorangecounty communities Page 4 of 4
monitored, andthekidsjust seemto havearealsenseof camaraderie," McClelland,aformerpastor,saidcybercafesareasafeenvironmentto keepaneyeonkids whileofferingthemeducationaltoolsthroughameanstheyenjoy.

I wish the churchwas doing this," he said. "It would fit very perfectly with a church's mission because of the style and so forth."
The City Council will meet at 7:30 p.m. Tuesday in the City Hall Council Chambers, 401 E.

Chapman Ave. Information: ( 714) 993- 8117.

Copyright© 2000- 2002 myorangecounty. com. All Rights Reserved.

Other myOC. com sites: OCRegister I OCRealEstateFinder I OCCarFinder I myOCSincleScene I OCiobFinder Freedom Communications, Inc.
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el siticonval ley. el internet. com.

January 3, 2003
Violence Breaks out in Los Angeles Cyber Cafes
By Gretchen Hyman
Los Angeles cyber youth are the subject of a recent investigation by the Los Angeles Police Department following a yearlong streak of violence at citywide cyber cafes.

On Monday, Dec. 30, Los Angeles police reported a PC game- related dispute outside a cyber cafe called NetStreet in the Northridge area of the city that involved several teens using chairs and steel pipes as weapons. One teen was shot in the leg and another teen suffered a head wound, police said. Some reports said the brawl involved nearly 100 people.

Earlier this year, a youth was shot and killed outside the same cafe in Northridge.

According to police, Monday' s brawl is among 300 similar incidents over the past year that have become commonplace at cyber cafes. The epicenter of cafe- related violence has been in the Garden Grove and South Los Angeles areas of the city where unrestricted PC gaming is a popular pastime for teens.

The catalyst for the violent outbreaks is partly being blamed on the online game Counter- Strike, a multiplayer counter- terrorism game that uses cash prizes to drive competition between players.

Counter- Strike, among many other popular violent combat simulator games, enables players to role- play as either terrorists or counter terrorists and involves the use of guns, grenades, bombs, hostage situations, and assassinations.

Counter- Strike is marketed by the gaming unit of Vivendi Universal and is not intended for players under the age of 17 because of its violent nature.

In reaction to the surge in teen violence, City Councilman Dennis P. Zine, a former police officer, has demanded a citywide investigation by LAPD into Internet cafes.

Zine will introduce a motion at a hearing next week calling for reports on all cyber cafe- related violence throughout the city.

Last December, Garden Grove, Calif., a suburb of Orange Country that is heavily populated by Vietnamese and Korean immigrants, experienced a rash of cyber cafe violence that began with the murder of a Vietnamese American youth with a screwdriver in the parking lot of a cyber cafe. In the following months, other violent incidents occurred outside the same cafe, reports said.

In some of the reported cyber cafe episodes, police are looking into the possibility of Asian gang activity, although no charges have yet been confirmed by police.

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Earlier this year, Los Angeles council members passed an ordinance that required the presence of security guards at cyber cafes that stay open to the public at night.

Pending results from the citywide investigation into cyber cafe violence, Zine and fellow city council members are proposing that cyber cafes be more closely regulated and that in addition to the steady presence of security guards, that they carry age restrictions.

Zine does not directly blame cyber games for the violence but rather youth gangs that congregate in such places without proper supervision.

Since cyber cafes are a growing industry, they require increased safety measures," said Zine. " As far as the game content, I don' t want to restrict anything or intrude upon people' s freedom of expression. I just want adequate safety for these kids," said Zine. " We have restrictions for many other types of late night businesses. Bars have to close by a certain time, and yet in this industry, there are no restrictions whatsoever." According to Zine, the ordinances city council is calling for will be swiftly enacted in hopes of avoiding any more violence.

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5 }^^ f T.
en
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The Orange County Register • Thursday, Aug. 8, 2002
rCyercarè ' e`
Courts • Citing burden on businesses, judge dwindlingbusinessbyturningtutionalityissueswhenwere- away customers with no iden- strain others' speech."
issues injunction stopping Garden Groves tification and making owners He also said requiring sur- stiff regulations from taldng effect Friday. pay for security guards. veillance cameras would aid At the end of the hearing, police in gathering evidence By KATHERINE NGUYEN The law would require Choate encouraged city offs- but would put a bigger burden The Orange County Register owners to close by 10 p. m. cials and the plaintiffs to col- on the business owners. weekdays, ban minors after laborate on tweaking the ordi- Diane Vo, owner of Viet-

GARDEN GROVE
8p.m., hire more attendants, nance.Thenextcourthearing nam Internet Center, called The city' s attempt to enact check customers' identifica- is Aug. 29. the judge's decision "a good the strictest cybercafe ordi- tion, keep names and ad- Attorneys said the case may sign." nance in the county was dresses of patrons, and hire a be precedent- setting because The City Council is to meet . blocked Wednesday by a security guard after 6 p. m. other cities such as Placentia in closed session Tuesday to judge who questioned nearly City officials cited two re- and Orange also are forming discussthe issue. every rule that he said would cent cybercafe- related hom- cybercafe regulations. Councilman Mark Rosen burden cybercafe owners. icides and a string of reported Choate took issue with the didn't see anything in the Superior Court Judge Den- assaults as reasons for stiff re- " boisterous conduct" rule that plaintiffs' argument that rose nis S. Choate granted a tempo- strictions to try to curb the would banthe repeateduseof to " a legal challenge." rary injunction that stops the threat of violence. Cybercafe profanity in cybercafes. But if the judge thinks city ordinance from going into owners said the new regu- " That' s prior restraint," need to fix something, effect Friday. lations would kill their already Choate said. " There' s consti- will," he said.

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Attachment 3
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City of Lake Forest, CA
Monday, April 14, 2025
Title 5. Business Regulations
Chapter 5.34. CYBER CAFÉS
§ 5.34.010. Definitions.
"Cyber café" means an establishment that provides more than six computers and/or other electronic devices for access to the world wide web, Internet, e-mail, video games or computer software programs which are networked (via LAN or WAN or otherwise) or which function as a client/server program, and which seeks compensation, in any form, from users. Cyber café is synonymous with a personal computer ("PC") café, Internet café and cyber center, but does not include a cyber learning center as defined herein.
"Cyber learning center" means an establishment that provides computer access which is operated by the City of Lake Forest, a school district, a college district, or a private institution of learning which provides classes in computer instruction, or a non-profit organization, without payment of compensation in any form (other than school tuition).
(Ord. 167 § 4, 2007)
§ 5.34.020. Cyber café license required.

It is unlawful for any person to engage in, conduct or carry on, in or upon any premises or real property located within the City, the activities of a cyber café, unless such person has been granted a valid license pursuant to the provisions of this chapter. A separate license shall be required for each location within the City where a cyber café is to be established.

Cyber learning centers shall be exempt from the foregoing license requirements. (Ord. 167 § 4, 2007)
§ 5.34.030. Term of license.

The term of a cyber café license, unless sooner suspended or revoked, shall be one year. (Ord. 167 § 4, 2007)
§ 5.34.040. Renewal of license.

A cyber café license, issued pursuant to the provisions of this chapter, that has not been suspended or revoked, may be renewed, upon payment of the renewal application fee, for a period not to exceed one year on written application to the Director of Community Development made at least 60 days prior to the expiration date of the current valid license. This application for renewal of a license shall contain all of the information required by Section 5.34.050 of this chapter and shall be processed in accordance with the provisions of this chapter.
(Ord. 167 § 4, 2007)
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§ 5.34.050. License application and issuance.

Any person desiring to obtain a license, or renew an existing license, to operate a cyber café shall file a written application with the Director of Community Development or designee thereof. The application shall be signed under the penalty of perjury. Prior to submitting the application, a nonrefundable fee, in an amount established by resolution of the City Council, shall be paid to the City. The City shall issue a receipt showing that such application or renewal fee has been paid. The receipt, or a copy thereof, shall be supplied by the applicant to the Director of Community Development at the time such application is filed. The license issuance or renewal fee required under this chapter shall be in addition to any other license, fee or license required under this Code.

Neither the filing of an application for a license or renewal thereof, nor payment of an application or renewal fee, shall authorize the operation of a cyber café until such license has been granted or renewed.

Each applicant for a cyber café license, or renewal thereof, shall furnish the following information:

The present or proposed address where the business is to be conducted; The full and true name under which the business will be conducted; The full and true name and any other names used by the applicant; The present residence and business address and telephone numbers of the applicant; Each residence and business address of the applicant for the five year period immediately preceding the date of filing of the application and the inclusive dates of each such address; The California driver's license or identification number of the applicant; Acceptable written proof that the applicant is at least 18 years of age; A precise description of the services to be provided;
A detailed site and floor plan of the proposed business, depicting the building and unit proposed and including interior dimensions and off-street parking spaces required by the City's Zoning Code;
A detailed description of the food and beverage service, if any, that will be offered to patrons; The dates and hours during which the cyber café is desired to be conducted and the fee to be charged;
The name(s) of the person(s) responsible for the operation, management, and supervision of the cyber café; and
A statement as to whether the applicant, owner, or any person to be responsible for the operation, management, and supervision of the cyber café has, within the past five years, had any permit or license issued in conjunction with a cyber café and whether during that period the permit or license was suspended or revoked. If so, then the application shall provide the name of the issuing agency and an explanation of the suspension or revocation.

The applicant shall present the application to the Director of Community Development together with the information and supporting documentation required by subsection C of this section. A copy of the application shall be distributed to the City's planning and building departments and the Orange County Sheriff's Department and Fire Authority for review.

When any change occurs regarding the written information required by subsection C of this section to be included in the application, the applicant or license holder, as the case may be, shall give written notification of such change to the Director of Community Development within five business days of such change.
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The Director of Community Development shall have a reasonable time, not to exceed 45 days to investigate the facts set forth in the application and to receive comments from the City's Planning and Building Departments, the Orange County Sheriff's Department and the Orange County Fire Authority. The Director of Community Development shall, within 45 days after the date of the filing of the application, grant the license, or renewal thereof, only if it is found that all of the following requirements have been met:

The required fees have been paid;
The application, and all information contained therein, conform in all respects to the provisions of this chapter;
The applicant has not knowingly made a material misrepresentation of fact in the application; The cyber café, as proposed, would comply with this chapter and all other applicable City, County and State laws including, but not limited to, health, zoning, fire and safety requirements and standards;
The applicant is at least 18 years of age;
The cyber café site and floor plan have been reviewed by the City's Planning and Building Departments and the Orange County Fire Authority which have approved the same as well as all fire and panic safety equipment required to be installed; all requirements of the Americans with Disabilities Act have been satisfied; and that the maximum occupancy has been established, will be posted and will not likely be exceeded based on the floor plan; The Director of Community Development has not received evidence that the applicant has, within the previous five years, had any license or entitlement to operate a cyber café revoked due to the applicant's commission of a crime or violation of conditions of approval applicable to a cyber café; provided, however, a cyber café license may be granted subject to additional conditions designed to preclude a recurrence of the events or activities causing the prior license revocation.

If the Director of Community Development does not find that all of the requirements of subsection F of this section have been met, the application shall be denied.

In the event that an application for a license or renewal thereof is denied, written notice of the denial shall be given within 10 business days to the applicant, specifying the ground(s) of the denial and a description of the hearing rights provided by subsection (G)(2) of this section.

Notice of denial of the application may be personally served or served by first-class postage prepaid and addressed to the applicant at the address set forth in the application. Mailed notice shall be deemed received three days after mailing.

The decision of the Community Development Director may be appealed to the City Manager by filing a written notice requesting a hearing within 10 days of the decision of the Community Development Director. The City Manager may hear the appeal or assign it to a Hearing Officer selected using the criteria in Chapter 1.12 (for purposes of this section, the term Hearing Officer shall mean the City Manager or a Hearing Officer selected using the criteria in Chapter

1.12).

The hearing shall be conducted within 45 days of the request.

The Hearing Officer shall conduct the hearing under such rules of procedure as are appropriate to quasi-judicial proceedings, provided that the applicant/licensee and the City shall be entitled to present relevant evidence, testify under oath, and call witnesses who shall testify under oath. The Hearing Officer shall not be bound by the statutory rules of evidence in the hearing, except that hearsay evidence may not be the sole basis for the determination of the Hearing Officer. The City shall have the initial burden of proof. The Hearing Officer shall cause a transcript of the hearing to be prepared. 4/14/25, 4:53 PM City of Lake Forest, CA CYBER CAFÉS
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At the conclusion of the hearing, the Hearing Officer shall decide whether the grounds for denial, revocation or non-renewal exist. Within 10 days after the conclusion of the hearing, the Hearing Officer shall file with the City Clerk, together with the transcript of the hearing, a written decision, supported by written findings based on the evidence submitted, and a statement of his/her order. A copy of such decision shall be forwarded by certified mail, postage prepaid, to the licensee on the day it is filed with the City Clerk. The decision of the Hearing Officer shall become effective three days after its mailing to the applicant/licensee, unless timely appealed as provided in subsection H of this section.

If the City Manager has conducted the appeal hearing, the City Manager's decision shall be appealable in accordance with the procedures set forth in Chapter 1.12 of this Code.

Notwithstanding any provisions in this chapter regarding the occurrence of any action within a specified period of time, the licensee/applicant may request additional time beyond that provided or may request a continuance regarding any decision or consideration by the City of the pending appeal. Extensions of time sought by applicants shall not be considered delay on the part of the City or constitute failure by the City to provide for prompt decisions on applications.

The time for a court challenge to the Hearing Officer's decision is governed by California Code of Civil Procedure Section 1094.8, and notice of the Hearing Officer's decision and its findings shall include citation to California Code of Civil Procedure Section 1094.8. (Ord. 167 § 4, 2007; Ord. 247 § 36, 2013)
§ 5.34.060. Transfer of license.

Unless prior application is made, thereafter approved, and a license issued thereon, upon the sale or transfer of any interest in a cyber café, the license shall immediately become null and void. A new application shall be made and fee paid by any person desiring to own or operate the cyber café. Any application involving the sale or transfer of any interest in an existing cyber café, as well as any license which may thereafter be granted, shall be subject to the provisions of this chapter. (Ord. 167 § 4, 2007)
§ 5.34.070. Change in location, floor plan or business name.

A holder of a valid cyber café license shall notify the Community Development Director, in writing, of any proposed change in the business location, floor plan or business name at least 30 days prior to such change.

Nothing in this section shall excuse the owner of a cyber café from obtaining all other approvals necessary to change a location, floor plan or business name. (Ord. 167 § 4, 2007)
§ 5.34.080. License revocation.

If the City Manager finds that any person holding a City-issued cyber café license has violated or allowed the violation of any of the provisions of this chapter or has conducted business in a manner that would have been grounds for license denial, the license may be revoked following notice and a hearing.

No revocation shall become effective until the license holder has been notified in writing of the right to a hearing pursuant to the provisions of Section 5.34.050(G)(2), (H), (I), and (J) of this Code.

Notice of the pending revocation and right to appeal shall be given to the license holder either by personal delivery or registered mail, addressed to the license holder at the address set forth in the license application. Mailed notice shall be deemed received three days after mailing. 4/14/25, 4:53 PM City of Lake Forest, CA CYBER CAFÉS
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If a request for hearing is filed within seven days from the notice provided in subsection B of this section, the revocation shall be stayed and shall become effective only upon an adverse decision of the City Manager/Hearing Officer, unless immediate revocation pending the hearing is necessary due to an immediate threat to the public health, safety or welfare. Otherwise, the revocation shall become effective upon expiration of the appeal period.
(Ord. 167 § 4, 2007; Ord. 247 § 37, 2013)
§ 5.34.090. Regulations and hours of operation.

Minors (under 18 years of age) shall not be permitted to enter or remain in a cyber café during the following stated hours unless accompanied by a parent or legal guardian:

Between 8:00 a.m. and 3:00 p.m., or after ten p.m. on Monday through Thursday of each week;
Friday between 8:00 a.m. and 2:00 p.m., or after 10:00 p.m.; Saturday after 10:00 p.m.;
Sunday after 10:00 p.m.;
The above weekday hours of restriction shall not apply to vacation days or school holidays as established by any public school district or private school, kindergarten through twelfth (12th) grade, operating within the City of Lake Forest;
Notice of these hours of restriction for minors shall be posted at the entrance in lettering of at least two inches in size.

The cyber café shall not be open to customers, patrons or any member of the public between the hours of 2:00 a.m. and 8:00 a.m. on Saturday and Sunday or between the hours of 1:00 a.m. and 8:00 a.m. Monday through Friday. There shall be no customers in or about the premises during the hours that the business is closed.

A waiting area with not less than eight seats shall be provided for customers waiting to use a computer. No outside waiting or seating area is licensed.

No person shall be permitted to consume alcoholic beverages on the inside of the premises. The sale of cigarettes and alcohol on the premises is prohibited. No intoxicated or disorderly person shall be allowed to remain on the premises.

Employees shall be at least 18 years of age. There shall be a minimum of one employee managing the cyber café during all working hours. The ratio of employees to customers shall be 1:30. During each employee's working hours, the employee shall wear a badge identifying the business and the employee's full name.

Occupancy shall not exceed that required under the California Building Code, as adopted and amended in Chapter 8.02 of this Code, and the California Fire Code, as adopted and amended in Chapter 8.24 of this Code, and the maximum occupancy load shall be posted at the main entrance.

The establishment shall maintain and operate a camera/video surveillance system during all business hours. The system shall cover the entire interior of the premises and all entrances to and exits from the establishment. Tapes/disks shall be kept a minimum of 72 hours. The owner shall license the City to inspect the tapes/disks during business hours. A sign shall be posted inside and at the entrances to the establishment indicating that the premises are under camera/video surveillance.

The owner shall submit and receive approval of a fire exit plan from the Orange County Fire Authority. The plan shall address all existing requirements of the California Building Code, as adopted and amended in Chapter 8.02 of this Code, and the California Fire Code, as adopted and amended in Chapter 8.24 of this Code. This includes, but is not limited to, providing an exit plan 4/14/25, 4:53 PM City of Lake Forest, CA CYBER CAFÉS
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showing equipment location, aisle locations and dimensioned widths, and having approved exit doors and panic hardware.

Window areas shall not be covered or made opaque in any way, excepting during daylight hours when blinds or other equivalent window coverings may be used.

The Chief of Police may require a specific cyber café operator to provide a security guard(s) on the premises in the event there are repeated calls for police services relating to the premises and including, but not limited to, assaults, gang activity, weapons offenses, disturbances of the peace and juvenile crimes including truancy.

Lighting levels within 60 feet of the business and in all required parking areas shall be maintained at a minimum of one foot-candle of light. Interior lighting shall be maintained at a minimum of 30 foot-candles of light.

Any access to web sites or software with adult-oriented material, as adult-oriented material is defined in Section 5.10.012 of this Code, is prohibited unless specifically licensed under Chapter

5.10 of this Code.

No pool tables or other amusement devices not directly related to the Internet and similar computer devices shall be permitted in the business.

No gaming tournaments for cash prizes shall be permitted.

No electronic game machine, computer or other type of station shall be located in any private area, room or booth.

User rates and other fees must be conspicuously posted on the premises.

Under no circumstances shall electronic game machines, which includes computers and other amusement devices, be used for illegal gaming or gambling. The applicant shall be responsible for ensuring customers do not use any electronic game machine for illegal gaming or gambling.

The applicant shall provide adequate trash receptacles both inside and outside of the building. The applicant shall keep the outside of the business, including the parking lot, free of litter, trash and debris.

There shall be a minimum of one lavatory facility accessible to customers and employees.

Any booth or individual computer use area within the business shall be visible from a continuous and accessible main aisle in a public portion of the café, and shall not be obscured by any door, curtain, wall, two way mirror or other device which would prohibit a person from seeing the entire interior of the booth/individual viewing area from the main aisle. Further, no one shall maintain any booth/individual viewing area in any configuration unless the entire interior wherein the computer that is being used is visible from one main aisle.

No doors are permitted on a booth/individual viewing area. No partially or fully enclosed booth/individual viewing areas or partially or fully concealed booth/individual viewing areas shall be maintained.
(Ord. 167 § 4, 2007; Ord. No. 247 §§ 38—40, 2013)
§ 5.34.100. Abatement of nuisance activities.

Any cyber café operated, conducted or maintained contrary to the provisions of this chapter shall be and is declared to be unlawful and a public nuisance, and the City may, in addition to or in lieu of any other remedy, commence an action or proceeding for the abatement, removal or enjoyment thereof, and may take such other steps and may apply to such court or courts as may have jurisdiction to grant such relief to abate or remove such establishment and restrain and enjoin any person from operating, conducting or maintaining a cyber café contrary to the provisions of this chapter. (Ord. 167 § 4, 2007)
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§ 5.34.110. Penalties.

It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this chapter. Any person violating, permitting or causing the violation of this chapter shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished as set forth in Section 1.01.220 of this Code, or any successor provision thereto. A violation of any other provision of this chapter shall be deemed to be an infraction and, upon conviction thereof, shall be punished as set forth in Section

1.01.220 of this Code. Each person shall be deemed guilty of a separate offense for each and every day, or any portion thereof, during which any violation of any provision of this chapter is committed, continued or permitted by such person and shall be deemed punishable therefor as provided in this section.
(Ord. 167 § 4, 2007)
§ 5.34.120. Existing cyber cafés.

Any existing cyber café legally operating on April l, 2003, shall have until October 1, 2003, to comply with this chapter.
(Ord. 167 § 4, 2007)
§ 5.34.130. Fees.

The City Council shall, by resolution, set a fee for application for a cyber café license. Until such fee is set, the application fee shall be the minimum fee currently established for any land use certificate application.
(Ord. 167 § 4, 2007)
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Attachment 4
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Assembly Bill No. 2632
CHAPTER 728
An act to add Article 10.11 (commencing with Section 65630) to Chapter 3 of Division 1 of Title 7 of the Government Code, relating to land use. [Approved by Governor September 27, 2024. Filed with
Secretary of State September 27, 2024.]
legislative counsel’s digest
AB 2632, Wilson. Planning and zoning: thrift retail stores. (1) Existing law, the Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and of any land outside its boundaries that relates to its planning. Existing law authorizes the legislative body, if it deems it to be in the public interest, to amend all or part of an adopted general plan, as provided. Existing law also authorizes the legislative body of any county or city, pursuant to speci fied procedures, to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, open space, and other purposes.

This bill would prohibit a local agency, as defined, from treating a thrift retail store, as de fined, differently from a nonthrift retail store engaged in the sale of new items that are similar to items sold by a thrift retail store for purposes of zoning, development standards, or permitting, except as specified. The bill would allow a local agency to require that thrift retail stores meet certain aesthetic or design standards, as prescribed. The bill would prohibit a local agency from prohibiting a thrift retail store from receiving used and donated items for sale in the store or other thrift retail stores, or reuse or recycling, or both reuse and recycling, through other means.

By imposing additional duties on local officials, the bill would impose a state-mandated local program.

The bill would specify that nothing in its provisions shall be construed to, among other things, prohibit the adoption or enforcement of reasonable local rules or ordinances on retail establishments engaged in the sale of new items that are similar to items sold by a thrift retail store. (2) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. 95 STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
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This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1. Article 10.11 (commencing with Section 65630) is added to Chapter 3 of Division 1 of Title 7 of the Government Code, to read:

Article 10.11. Thrift Retail Stores
65630. (a) The Legislature finds and declares all of the following:
(1) The 2020 annual report, as published by the Department of Resources Recycling and Recovery, found that California is falling far short of the state diversion goal of 75 percent in 2020.
(2) A significant portion of the waste stream into California land fills is composed of clothing and household goods that have not reached the end of their usefulness. Discarded clothing remains the largest source of textile waste in the world, with the average United States citizen throwing away 81 pounds of clothing each year, 95 percent of which could have been reworn or repurposed. Yet, 85 percent of this material ends up in landfills. According to the Ellen MacArthur Foundation, one garbage truck of textiles is landfilled or incinerated every second.
(3) California faces a growing problem in siting and approving sufficient landfill space. Landfill siting and the expansion of current landfill facilities are controversial and land fills create the potential for signi ficant adverse environmental impacts.
(4) Discarding still-usable clothing and household goods increase greenhouse gas emissions by stimulating production of replacement goods and adding greenhouse gas emissions along the continuum of product manufacture, transportation, warehousing, and delivery. (5) Recent years have seen an increase in consumer interest in purchasing used clothing and smaller household items from retail establishments that specialize in selling such goods, commonly referred to as “thrifting” and “thrift” retail establishments. Thrift accounted for approximately 60 percent of the total secondhand market in 2021. As of June 2022, more than one in three shoppers in the United States, and nearly one-half of Canadian shoppers, surveyed reported caring more about the environmental impact of their apparel choices today than they did three years ago. (6) Thrift retail establishments are identical to other retail establishments in terms of local impacts on traf fic, parking, and other land use topics. In addition, given that thrift establishments divert reusable goods from landfills in furtherance of important statewide policy, those establishments provide environmental benefits that nonthrift retail establishments do not. (b) Therefore, it is the intent of the Legislature that local governments be prohibited from classifying or otherwise treating thrift retail 95 — 2 — Ch. 728
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establishments differently than nonthrift retail establishments, subject to certain limitations contained in this article.
65631. For purposes of this article, the following de finitions apply:
(a) “Thrift retail store” means a retail store and related donation facilities engaged primarily in the sale of secondhand clothing, shoes, apparel, toys, and standard household goods, including furniture, fixtures, and small household appliances, and the collection of those goods for resale. “Thrift retail store” does not include the sale of large household appliances such as refrigerators or stoves and does not include the sale of cars or anything automotive-related.
(b) “Local agency” means a city, including a charter city, a county, or a city and county.
65632. (a) Except as provided by subdivisions (c) to (e), inclusive, a local agency shall not treat a thrift retail store differently from a nonthrift retail store engaged in the sale of new items that are similar to items sold by a thrift retail store for purposes of zoning, development standards, including, but not limited to, height, size, parking requirements, or setbacks from adjacent uses, or permitting. A local agency may also require that thrift retail stores meet certain aesthetic or design standards, including design review approval, provided those standards or design review, or both, are also required of nonthrift retail stores.
(b) A local agency shall not prohibit a thrift retail store from receiving used and donated items for sale in the store or other thrift retail stores, or reuse or recycling, or both reuse and recycling, through other means. (c) Nothing in this section shall be construed to prohibit the adoption or enforcement of reasonable local rules or ordinances on retail establishments engaged in the sale of new items that are similar to items sold by a thrift retail store.
(d) Nothing in this section shall be construed to prohibit the adoption or enforcement of reasonable local rules or ordinances on the collection or receipt of used and donated items by a thrift retail store, including, but not limited to, reasonable local rules or ordinances related to any of the following:
(1) Requirements that the delivery of goods or donations is conducted within a specified area of the premises of a thrift retail store. (2) Requirements that any donation be accepted only during business hours.
(3) Requirements that the donation process is operated by employees of the thrift retail store and that the donations of goods from the public are collected and received by employees of the thrift retail store. (4) Limitations on the square footage or percentage of the thrift retail store premises within which collecting and receiving activities are conducted. (5) Requirements applicable to the operation of equipment associated with the collection, receipt, processing, or disposal of used and donated goods.
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(6) Enforcement of health and safety standards including, but not limited to, standards relating to shopping center ingress and egress or the enforcement of illegal dumping.
(e) Nothing in this section shall be construed to limit or otherwise affect the ability of a local agency to adopt or enforce any local rules or ordinances on businesses other than thrift retail stores.

SEC. 2. The Legislature finds and declares that reducing the waste stream of discarded clothing and household goods to state landfills by facilitating the siting of thrift retail establishments is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Section 1 of this act, adding Article

10.11 (commencing with Section 65630) to Chapter 3 of Division 1 of Title 7 of the Government Code, applies to all cities, including charter cities.

SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

O
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Attachment 5
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: City Manager
SUBJECT:

CITY WORKFORCE VACANCIES, RECRUITMENT AND RETENTION
PRESENTATION (AB 2561)
RECOMMENDED ACTION(S):

Conduct a public hearing regarding AB 2561 to receive and file a presentation of the status of vacancies and recruitment and retention Efforts at the City of Lake Forest.

EXECUTIVE SUMMARY:

Assembly Bill 2561 (AB 2561) introduced new requirements for public agencies to address and publicly report on staffing vacancies and recruitment and retention efforts (Attachment). As part of this law, public agencies must also highlight hiring challenges resulting from any necessary changes to policies, procedures, or recruitment activities.

The following public hearing shall include a report of all staffing vacancies at the City. All data collected is from the 2024 calendar year. The City currently does not report any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. Staff recommend the City Council conduct a public hearing to receive and file a presentation regarding the status of vacancies and recruitment and retention efforts during a public hearing to fulfill the annual requirement under this law.

BACKGROUND:

On September 22, 2024, Governor Gavin Newsom signed Assembly Bill 2561 (“AB 2561”) into law, amending the Meyers-Milias-Brown Act to require public agencies to publicly disclose the status of their job vacancies (Attachment). AB 2561, codified as Government Code Section 3502.3 (GC § 3502.3), aims to address persistent staffing shortages in local government.

GC 3502.3 requires public agencies to present the status of their vacancies and recruitment and retention efforts during a public hearing before their governing board at least once per fiscal year prior to the adoption of a final budget for the Item: 9
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fiscal year. During the presentation, the public agency is also required to identify any changes to policies, procedures, or recruitment activities that may lead to obstacles in the hiring process.

Additionally, the law entitles recognized employee organizations, regardless of the vacancy rate, to make a presentation before the governing board of a public agency during the same public hearing in which the public agency makes its annual presentation on vacancies. This requirement does not apply to the City, as it has no bargaining units.

DISCUSSION
The following discussion includes a summary of the City’s staffing vacancies, recruitment efforts, and retention rate for review through a public hearing presentation.

Vacancies
Position vacancies arise for several reasons, including the approval of newly budgeted roles, internal promotions, and employee departures due to retirement, resignation, or termination. Throughout the 2024 calendar year, the City’s average vacancy rate was 4.3%. The vacancy rate is calculated monthly as the quantity of vacancies divided by the quantity of positions. All data collected is from the 2024 calendar year.

As of December 31, 2024, there were 73 authorized full-time positions. During calendar year 2024, eight (8) positions became vacant due to a range of factors, including resignations, retirements, unsuccessful completion of the probationary period, and other personal reasons, as outlined in Table 1 below.

Table 1: 2024 Vacancy Data
Vacancy Reason # of Vacancies
Voluntary Separation 5
Internal Promotion 2
Newly Budgeted Position 4
Retirement, Termination 2
Total 13
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Recruitment and Retention Efforts
Recruitment involves attracting and hiring the right talent, while retention focuses on keeping employees engaged, satisfied, and committed over the long term to maintain a healthy city workforce.

The median time to fill a full-time vacant position during the 2024 calendar year was 89 days. During the year, 13 position vacancies were created, including four newly budgeted roles. A total of 14 job postings were opened, and staff successfully filled 10 vacancies. The difference between the number of job postings and position vacancies is attributed to the Records Coordinator and Facilities Specialist positions, which each required recruitment efforts twice during the year.

For 2024, the City’s retention rate was 90%, reflecting a strong ability to retain employees. The retention rate is calculated as the quantity of those employees who remained with the organization through the end of 2024, divided by the quantity of City employees at the beginning of 2024.

Pursuant to GC 3502.3(a)(3), staff have not identified any necessary changes to policies, procedures, or recruitment activities that may present barriers to hiring.

Staff recommend the City Council conduct a public hearing to receive and file a presentation regarding the status of vacancies and recruitment and retention efforts during a public hearing to fulfill the annual requirement under this law.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

AB 2561 Bill Text
Initiated By: Shelly Cisneros, Human Resources Manager
Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: City Manager
SUBJECT:

SEVENTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT
RECOMMENDED ACTION(S):

Approve the Seventh Amendment to City Manager Employment Agreement and authorize the Mayor to execute and the City Clerk to attest the document.

EXECUTIVE SUMMARY:

The City Council recently completed the annual evaluation process for the City Manager. As a result of a positive evaluation, the Council directed the City Attorney to prepare the attached Seventh Amendment to City Manager Employment Agreement (“Seventh Amendment”) providing for an increase to the City Manager’s base salary for the next two years, an increase to the City Manager’s annual deferred compensation contribution equal to the IRS annual maximum deferral limit and the annual maximum age catch-up ($23,500 and $7,500 in 2025), and a one-time bonus of $12,000.

Debra D. Rose has served as the City Manager of the City of Lake Forest since 2017. In line with previous years, the City Council and Ms. Rose have reviewed and agreed upon the terms of employment including salary, benefits, procedures for annual performance evaluations, and authorized compensation adjustments and additional benefits as set forth in the proposed Seventh Amendment.

FISCAL IMPACT:

Effective July 1, 2025, the proposed Seventh Amendment provides for an increase of $13,281 to a base salary of $308,427, a contribution of $23,500 and a $7,500 age-catch up contribution to her 457(b) deferred compensation plan and a one-time lump-sum non-PERSable $12,000 bonus. The proposed Seventh Amendment also provides for an increase of $13,879 to a base salary of $322,306, and a deferred compensation plan contribution of the IRS annual maximum deferral limit and the annual maximum age catch-up to her 457(b) deferred compensation plan for Fiscal Year 2026-2027. The proposed 2025-2027 Operating Budget includes sufficient funding for the recommended action.

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ATTACHMENTS:

1. City Manager Employment Agreement

2. First Amendment to City Manager Employment Agreement

3. Second Amendment to City Manager Employment Agreement

4. Third Amendment to City Manager Employment Agreement

5. Fourth Amendment to City Manager Employment Agreement

6. Fifth Amendment to City Manager Employment Agreement

7. Sixth Amendment to City Manager Employment Agreement

8. Proposed Seventh Amendment to City Manager Employment Agreement Initiated By: Shelly Cisneros, Human Resources Manager
Submitted By: Matthew E. Richardson, City Attorney
Approved By: Keith Neves, Assistant City Manager
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ATTACHMENT 1
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ATTACHMENT 2
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ATTACHMENT 3
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Attachment 4
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Attachment 5
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Attachment 6
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FIFTH AMENDMENT TO AGREEMENT FOR EMPLOYMENT

CITY MANAGER
THIS FIFTH AMENDMENT is made and entered into this 20th day of June, 2023, effective July 1, 2023, by and between the City of Lake Forest, a California general law municipal corporation of the State of California, hereinafter referred to as " City" and Debra D. Rose, hereinafter referred to as " City Manager."

RECITALS
WHEREAS, the City Council of the City of Lake Forest entered into that certain Agreement for Employment dated May 2, 2017 (" Agreement") employing the services of Debra D. Rose as City Manager of the City of Lake Forest; and WHEREAS, the City Council of the City of Lake Forest subsequentlyentered into that certain Amendment to Agreement for Employment dated August 7, 2018 ( First Amendment"); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Second Amendment to Agreement for Employment dated August 20, 2019 ( Second Amendment"); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Third Amendment to Agreement for Employment dated June 1, 2021 Third Amendment"); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Fourth Amendment to Agreement for Employment dated June 7, 2022 Fourth Amendment"); and
WHEREAS, the City now desires to amend the Agreement in order to provide for an increase to the City Manager's annual Base Salary (" Fifth Amendment").

NOW, THEREFORE, in consideration of the respective and mutual covenants hereinafter contained and made, and subject to all the terms and conditions hereof, City and City Manager agree as follows:

TERMS
A. Compensation. Section 2(A) is hereby amended in its entirety to read as follows:

Effective July 1, 2023, the City shall pay City Manager an annual Base Salary of two hundred seventy-eight thousand four hundred forty dollars Item: 10
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278,440) in installments at the same time as other executive management employees ( department heads) of City are paid."
B. Remaining Provisions of Agreement. Except as otherwise specifically set forth in this Fifth Amendment, the remaining provisions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Fourth Amendment the date and year first above written.

CITY OF LAKE FOREST CITY MANAGER
Doug Cirbo % Debra D. Rose
Mayor City Manager
ATTEST:

Lisa Berglund
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney
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Attachment 7
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SIXTH AMENDMENT TO AGREEMENT FOR EMPLOYMENT

CITY MANAGER
THIS SIXTH AMENDMENT is made and entered into this 18th day of June, 2024, effective July 1, 2024, by and between the City of Lake Forest, a California general law municipal corporation of the State of California, hereinafter referred to as "City" and Debra D. Rose, hereinafter referred to as " City Manager."

RECITALS
WHEREAS, the City Council of the City of Lake Forest entered into that certain Agreement for Employment dated May 2, 2017 (“ Agreement”) employing the services of Debra D. Rose as City Manager of the City of Lake Forest; and WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Amendment to Agreement for Employment dated August 7, 2018 (First Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Second Amendment to Agreement for Employment dated August 20, 2019 ( Second Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Third Amendment to Agreement for Employment dated June 1, 2021 Third Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Fourth Amendment to Agreement for Employment dated June 7, 2022 Fourth Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Fifth Amendment to Agreement for Employment dated June 20, 2023 Fifth Amendment”); and
WHEREAS, the City now desires to amend the Agreement in order to provide for an increase to the City Manager’s annual Base Salary and to provide additional benefits (“ Sixth Amendment”).

NOW, THEREFORE, in consideration of the respective and mutual covenants hereinafter contained and made, and subject to all the terms and conditions hereof, City and City Manager agree as follows:

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TERMS
A. Compensation. Section 2(A) is hereby amended in its entirety to read as follows:

Effective July 1, 2024, the City shall pay City Manager an annual Base Salary of two hundred ninety- five thousand one hundred forty- six dollars ($ 295, 146) in installments at the same time as other executive management employees department heads) of City are paid.”
B. Deferred Compensation. Section 2(I) is hereby amended in its entirety to read as follows:

The City agrees to contribute the IRS maximum annual contribution for a 457 ( b) plan to the City Manager’s deferred compensation account at the beginning of each fiscal year during the term of this Agreement. ( This is $ 23,000 for 2024).”
C. Bonus. Section 2(J) is hereby added as follows:

The City agrees to provide a one- time lump- sum non- PERSable bonus in the amount of twelve thousand dollars ($ 12,000).”
D. Remaining Provisions of Agreement. Except as otherwise specifically set forth in this Sixth Amendment, the remaining provisions of the Agreement, as previously amended, shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Sixth Amendment the date and year first above written.

CITY OF LAKE FOREST CITY MANAGER
Mark Tettemer Debra D. Rose
Mayor City Manager
ATTEST:

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55136.00000\42382753.1
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Lisa Berglund
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney
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55136.00000\43830478.2
Attachment 8
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SEVENTH AMENDMENT TO AGREEMENT FOR EMPLOYMENT

CITY MANAGER
THIS SEVENTH AMENDMENT is made and entered into this 3rd day of June, 2025, effective July 1, 2025, by and between the City of Lake Forest, a California general law municipal corporation of the State of California, hereinafter referred to as "City" and Debra D. Rose, hereinafter referred to as "City Manager."

RECITALS
WHEREAS, the City Council of the City of Lake Forest entered into that certain Agreement for Employment dated May 2, 2017 (“Agreement”) employing the services of Debra D. Rose as City Manager of the City of Lake Forest; and WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Amendment to Agreement for Employment dated August 7, 2018 (First Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Second Amendment to Agreement for Employment dated August 20, 2019 (Second Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Third Amendment to Agreement for Employment dated June 1, 2021 (Third Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Fourth Amendment to Agreement for Employment dated June 7, 2022 (Fourth Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Fifth Amendment to Agreement for Employment dated June 20, 2023 (Fifth Amendment”); and
WHEREAS, the City Council of the City of Lake Forest subsequently entered into that certain Sixth Amendment to Agreement for Employment dated June 18, 2024 (Sixth Amendment”); and
WHEREAS, the City now desires to amend the Agreement in order to provide for an increase to the City Manager’s annual Base Salary and to provide additional benefits (“Seventh Amendment”).

NOW, THEREFORE, in consideration of the respective and mutual covenants hereinafter contained and made, and subject to all the terms and conditions hereof, City and City Manager agree as follows:

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TERMS
A. Compensation. Section 2(A) is hereby amended in its entirety to read as follows:
“Effective July 1, 2025, the City shall pay City Manager an annual Base Salary of three hundred eight thousand four hundred twenty-seven dollars ($308,427) and effective July 1, 2026, the City shall pay City Manager an annual Base Salary of three hundred twenty-two thousand three hundred six dollars ($322,306), in installments at the same time as other executive management employees (department heads) of City are paid.”
B. Deferred Compensation. Section 2(I) is hereby amended in its entirety to read as follows:
“The City agrees to contribute the IRS maximum annual contribution for a 457 (b) plan to the City Manager’s deferred compensation account at the beginning of each fiscal year during the term of this Agreement. (This is $23,500 for 2025). In addition, the City agrees to contribute the IRS maximum annual contribution for an age-based catch-up for a 457(b) plan to the City Manager’s deferred compensation account (an additional $7,500 for 2025) at the beginning of each fiscal year during the term of this Agreement.” C. Bonus. Section 2(J) is hereby added as follows:
“The City agrees to provide a one-time lump-sum non-PERSable bonus in the amount of twelve thousand dollars ($12,000) for 2025-2026 payable in the first pay period after this Agreement is effective.”
D. Remaining Provisions of Agreement. Except as otherwise specifically set forth in this Seventh Amendment, the remaining provisions of the Agreement, as previously amended, shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Seventh Amendment the date and year first above written.

CITY OF LAKE FOREST CITY MANAGER
_____________________ _____________________
Scott Voigts Debra D. Rose
Mayor City Manager
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ATTEST:
_______________________
Thy Merritt Acting City Clerk
APPROVED AS TO FORM:
_______________________
Best Best & Krieger LLP
City Attorney
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: City Manager
SUBJECT:

CLASSIFICATION PLAN AND SALARY SCHEDULE FOR FISCAL YEAR 2025- 2026 and AMENDMENT OF THE PERSONNEL RULES AND REGULATIONS RECOMMENDED ACTION(S):

1. Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF LAKE FOREST, CALIFORNIA, ADOPTING A REVISED

CLASSIFICATION PLAN AND COMPENSATION SCHEDULE

2. Adopt a Resolution entitled: RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF LAKE FOREST, CALIFORNIA ADOPTING AN

AMENDMENT OF THE PERSONNEL RULES AND REGULATIONS
EXECUTIVE SUMMARY:

Every two years in line with the budget process, the City reviews its personnel policies, regulations, and classifications. The purpose of these reviews is: (1) to ensure that policies and regulations meet the operational needs of the City; and, that the City’s classification and compensation schedule reflects the workforce demands of the City.

The Lake Forest Classification Plan and Compensation Schedule (“Classification Plan”) identifies salary ranges for City job classifications and lists the number of budgeted full-time positions. Revisions to the Classification Plan are designed to meet the current needs of the City while also providing flexibility to address evolving work demands in the future.

The proposed Classification Plan for Fiscal Year 2025-26 includes:
• Eighty-five (85) salary grade adjustments
• Eight (8) new classifications
• Four (4) reclassifications
• Three (3) positions authorized at a higher level
If adopted, the City’s Classification Plan will include 93 full-time classifications, with a total of 73 authorized full-time positions for Fiscal Year 2025-26 (Attachment 1). This represents a net increase of $59,900 to salaries for Fiscal Item: 11
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Year 2025-26 as a result of the proposed changes to the Classification Plan. In addition, staff recommend changes to the part-time salary schedule with an estimated cost of $55,000.

The Personnel Rules and Regulations (“Personnel Rules”) serve as a guiding policy for the administration of staff and govern employee conduct in performing the City’s business. Following a comprehensive review, staff have proposed amendments to six (6) chapters and Exhibit A - Benefits Matrix (Attachments 3 and 4).These include updates to job titles to align with the proposed Classification Plan, and revisions to vacation and management leave accruals.

There is no fiscal impact associated with the proposed revisions to the Personnel Rules and Regulations.

If approved, the updated Personnel Rules and Regulations would become effective on June 20, 2025.

BACKGROUND:

Every two years, the City utilizes an independent consultant selected via a competitive procurement process to conduct a Classification and Compensation study. Ralph Andersen & Associates’ (“RAA”) reviewed the labor market to recommend updates to pay ranges for all positions. RAA’s recommendations also considered the internal salary relationships between the City’s various classifications. Market data was collected by RAA in the Fall of 2024 from thirteen comparable Orange County municipalities. Proper salary alignment with the market ensures the City offers a compensation plan that is externally competitive and fiscally responsible, while also supporting the City in its efforts to recruit, retain, and motivate high-performing employees.

The Personnel Rules and Regulations (“Personnel Rules”) serve as a guiding policy for the administration of staff and govern employee conduct in performing the City’s business. The Personnel Rules were last updated and approved by the City Council on December 4, 2024.

DISCUSSION:

Classification Plan and Compensation Schedule
Based upon the recommendations of RAA along with current labor market conditions, staff is recommending adoption of the proposed Classification Plan.

The Classification Plan includes 93 full- time classifications (i.e., job titles) and authorizes 73 full-time positions for Fiscal Year 2025-26. The proposed Classification Plan would enact the following changes.

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1. Implements Salary Grade Adjustments to Eighty-Five (85) Classifications RAA’s salary recommendations are based upon market data, as well as internal salary relationships. Market data was collected by RAA in the winter of 2024 from thirteen comparable Orange County municipalities. Proper salary alignment with the market ensures the City offers a compensation plan that is externally competitive and fiscally responsible, while also supporting the City in its efforts to recruit, retain, and motivate quality employees.

The salary range changes do not result in automatic, immediate salary increases for the employees in those classifications. They are simply an adjustment of the salary range for the position. Lake Forest does not provide universal or uniform cost-of-living salary increases. Rather, salary increases for full-time employees are based upon individual performance under the City’s “Pay-for-Performance” program. The only exception is when an employee’s current salary falls below the minimum of the newly adjusted salary range.

2. Adds Eight New Classifications
The City of Lake Forest continuously evaluates its staffing levels in conjunction with its current business functions and future workloads. As a result, Staff recommends the addition of eight new classifications (i.e., job titles). They include:
•Assistant Director of Public Works/Asst City Engineer
• Capital Improvement Plan (“CIP”) Manager
• Code Enforcement Manager
• Deputy Director of Maintenance and Facilities
• Senior Community Outreach Specialist
• Senior Facilities Maintenance Specialist
• Senior Information Technology Analyst
• Senior Street Maintenance Administrator
Of the eight (8) new classifications, four are included in the proposed 2025–2027 Operating Budget. All four budgeted positions are promotions of existing roles as discussed in number 4 below.

3.Reclassifies Four Positions
Staff recommend the following reclassifications based upon RAA’s market analysis and the City’s organizational needs. The four reclassifications are described in Table 1 below:

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Table 1 : Proposed Reclassifications
New Classification Previous Classification
CIP Manager Principal Civil Engineer
Information Technology Analyst Geographical Information System (“GIS”) Analyst
Management Assistant (Community
Development)
Management Aide (Community
Development)
Senior Street Maintenance Administrator Street Maintenance Administrator Over the past two years, the City has successfully completed 31 Capital Improvement Projects (CIPs), with 13 finalized in 2023 and 18 in 2024. These projects have significantly enhanced various aspects of the City's infrastructure and public services. As the complexity of the projects have grown, the Principal Civil Engineer role has evolved into a Capital Improvement Program Manager.

This reclassification reflects the expanded responsibilities including maintaining the CIP tracking system; preparing regular CIP program updates and reports; and assisting in the preparation of the CIP budget.

As information technology (“IT”) continues to play an increasingly vital role in the City’s operations, supporting a broad range of services and strategic initiatives, the scope and complexity of IT related responsibilities have significantly expanded. With the recent vacancy of the Geographical Information System (“GIS”) Analyst, staff conducted an analysis to evaluate how the position aligns with current operational needs. Previously, the City benefited from an employee whose primary focus was on GIS. However, the needs of the City have changed.

Staff propose reclassifying the GIS Analyst to an Information Technology Analyst. The Information Technology Analyst would oversee contract management, provide analytical support, and assist the IT Manager. To accommodate the shift in focus, the GIS duties will be outsourced to a consultant, allowing the reclassified Information Technology Analyst to focus on the broader IT responsibilities.

In response to an increase in responsibilities, the Management Aide position in the Community Development Department is recommended for reclassification to Management Assistant. This reclassification reflects the increased additional duties the position has recently acquired. This position will oversee the Tyler Enterprise Permitting and Licensing (“EPL”) software system including maintenance, support and contract management, and the administration of massage licensing.

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The reclassification to Senior Street Maintenance Administrator is recommended due to the increase in duties performed by the current Street Maintenance Administrator. The proposed role will manage complex maintenance service and public construction contracts, oversee the City’s GIS-based street asset inventory, and administer the procurement process for street maintenance projects.

The fiscal impact of the reclassifications is $33,600 during Fiscal Year 2025-26.

4. Authorizes Three Positions at the Higher Level
Staff recommend authorizing three positions at higher level positions to allow the City Manager the opportunity to promote employees. Table 2 below summarizes the proposed promotions.

Table 2 : Proposed Promotions
Proposed Promotion
Engineering Services Manager/Asst. City Engineer to
Assistant Director of Public Works/Asst. City Engineer
Public Works Maintenance Manager to
Deputy Director of Maintenance and Facilities
Landscape Administrator to Senior Landscape Administrator The promotion from Engineering Services Manager/Assistant City Engineer to Assistant Director of Public Works/Assistant City Engineer is recommended to allow for a realignment of supervision and shift of management responsibilities in the Public Works Department. In addition to overseeing Engineering and Capital Improvement Projects, the position would oversee the Environmental Compliance Division, which includes stormwater and hazardous materials programs. Additionally, the Assistant Director of Public Works/Assistant City Engineer would assist the Director of Public Works/City Engineer by managing long-term initiatives.

The promotion of the Public Works Maintenance Manager to Deputy Director of Maintenance and Facilities is based on the expanded scope of responsibilities within the Public Works Department. In addition to overseeing street and park maintenance operations, the position is proposed to oversee facilities management.

The Landscape Administrator promotion to Senior Landscape Administrator is a Item: 11
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result in the higher-level duties the employee has acquired in the Public Works Department. The proposed Senior Landscape Inspector will inspect the work of contractors engaged in the maintenance, construction, and care of City-owned parks, median strips, and landscaped areas. The position will also assume more complex maintenance oversight duties.

The fiscal impact of these promotions is $26,300 for Fiscal Year 2025-26.

5. Adds One Position to Flexibly Staffed Series
As a relatively small agency, there is limited potential for internal advancement. within the City for many entry-level employees. As a result, many entry-level employees seek job opportunities with other local governments that provide more robust promotional opportunities. The City can mitigate this issue by adding “series” steps to certain positions (i.e.: Management Assistant to Management Analyst). This enables an entry-level employee to progress within their job classification via a series of promotional steps.

In a flexibly staffed series, the distinction between the entry and the journey level may be based upon experience and expertise rather than on the types of duties assigned. After gaining the experience and knowledge to perform the full range of journey-level tasks, the employee could progress to the journey level based upon the judgment of supervisory staff and the City Manager.

Therefore, staff recommend that the City implement one additional flexible staffing series:
•Code Enforcement Officer/Senior Code Enforcement Officer If adopted, the flexible staffing series would enable a Code Enforcement Officer to be promoted to Senior Code Enforcement Officer, if the employee obtains the required experience and skillset needed to be promoted.

There is no fiscal impact associated with this proposed change.

6. Amends the Part-Time Salary Schedule
The City’s Part-Time Salary Schedule consists of multiple pay grades, each containing Steps A through G, with each step set 5% apart. Part-time employees move through the steps based on satisfactory job performance and length of service.

Currently, the lowest pay grade in the City’s Classification and Part-Time Salary Schedule begins at $16.50 per hour, which aligns with the State-mandated minimum wage. However, due to ongoing inflation and increased competition Item: 11
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from other agencies and private employers, the City has faced challenges in attracting and retaining part-time employees at this wage level. Staff recommend increasing the starting hourly rate for this pay grade by $1.50, raising it to $18.00 per hour.

This increase, however, creates salary compaction with the grades above it.

Salary compaction occurs when there is only a small difference in pay between employees, regardless of skills or experience. Salary compaction removes the incentive for employees to stay at the City and perform at high standards.

Therefore, staff recommend the remaining salary grades within the Part-Time Salary Schedule be increased (Attachment 1). Moreover, the current job market is extremely competitive, especially for part-time staff. Increasing the salary schedule for part-time employees will assist the City in successfully attracting and retaining part-time staff. If approved, the fiscal impact of the updated part- time salary range plan is estimated to be $55,000.

If approved, the updated Classification Plan and Compensation Schedule will become effective on June 20, 2025, to align with the first pay period of Fiscal Year 2025-2026.

Personnel Rules and Regulations
As with other policies, the Personnel Rules need to be updated periodically to address changes in the law, best practices, and the City’s operations. Following a thorough review, staff are proposing amendments to six (6) of the chapters and Exhibit A (Benefits Matrix) in the Personnel Rules. Most of the changes in the chapters reflect changes to state law, updated practices, employee benefits and recommendations from the City Attorney’s Office. Exhibit A includes updates to job titles in alignment with the proposed Classification Plan for Fiscal Year 2025– 26, as well as revisions to Vacation and Management Leave.

Proposed changes to the Personnel Rules reflecting changes in state law, updated practices, employee benefits and recommendations from the City Attorney’s Office are summarized in (Attachment 3). Staff attached an underline/ strike-out version of the Personnel Rules highlighting these changes (Attachment 4).

Through the 2024 Classification and Compensation study, Ralph Andersen & Associates (“RAA”) conducted a thorough review of leave benefits. This included a comprehensive labor market review of leave benefits, including both vacation and management leave. Currently, the Personnel Rules and Regulations (Exhibit A: Benefits Matrix) provide between 16 and 40 hours of Management Leave annually, based on classification. According to data from RAA, 11 of the 13 agencies surveyed offer on average 50% more Management Leave hours than Lake Forest.

Item: 11
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Based on the findings from RAA and further staff analysis, staff recommend amending employee leave benefits. The first proposed change would increase the annual Management Leave by 16 hours, resulting in a total of 32 to 56 hours per calendar year for employees, depending on classification. Second, the proposed Personnel Rules would adjust the vacation accrual rate to better align with comparable cities and support long-term retention efforts. Tables 3-5 show the changes to Management Leave and Vacation accruals.

Table 3: Current and Proposed Management Leave
Category Current Management
Leave
Proposed Management
Leave
A 40 56
B 24 40
C 16 32
D None None
Table 4: Current Vacation Accrual
Years in Service Annual Hours
0-4 80
5-9 120
10 128
11 136
12 144
13 152
14 or greater 160
Table 5: Proposed Vacation Accrual
Years in Service Annual Hours
0-2 80
3-7 120
8 or greater 160
If approved, the updated Personnel Rules and Regulations would become effective on June 20, 2025, to align with the first pay period of Fiscal Year 2025- Item: 11
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2026. Staff will continue monitoring legal developments in this area of public employee personnel management and present future amendments to the Personnel Rules as needed.

Conclusion
In conclusion, staff recommend the City Council adopt the following resolutions:
1) a Resolution revising the City’s Classification Plan and Compensation Schedule (Attachment 2); and 2) a Resolution amending the Personnel Rules and Regulations (Attachment 5).

FISCAL IMPACT:

The implementation of all the recommended changes related to the Classification Plan results in a total fiscal impact estimated to be $114,900 for Fiscal Year 2025-26. The proposed 2025-2027 Operating Budget includes sufficient funding to cover the cost of the recommended action. There is no fiscal impact to the adoption of the Personnel Rules and Regulations.

ATTACHMENTS:

1. Revised Classification Plan and Compensation Schedule FY 2025-26

2. Resolution Adopting a Revised Classification and Compensation Schedule

3. Proposed Changes to Personnel Rules and Regulations – Summarized

4. Proposed Changes to the Personnel Rules and Regulations – Redline Version

5. Resolution Amending Personnel Rules and Regulations
Initiated By: Shelly Cisneros, Human Resources Manager
Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager
Item: 11
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ATTACHMENT 1
Item: 11
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City Manager 1 $308,427 - $322,306 7/1/2025 6/3/2025
Assistant City Manager 88 $17,780 $23,114 1 2025-XX
Deputy City Manager 84 $16,108 $20,940 1 2025-XX
Director of Finance 82 $15,332 $19,931 1 2025-XX
Director of Public Works/City Engineer 82 $15,332 $19,931 1 2025-XX Director of Community Development 81 $14,958 $19,445 1 2025-XX Director of Management Services 80 $14,593 $18,971 0 2025-XX Director of Community Services 79 $14,237 $18,508 0 2025-XX Asst Dir of Public Works/Asst City Engineer 76 $13,221 $17,187 1 2025-XX Assistant Director of Finance 75 $12,898 $16,768 1 2025-XX Director of Economic Development 75 $12,898 $16,768 0 2025-XX Engineering Services Manager/Asst City Engineer 74 $12,584 $16,359 0 2025-XX Assistant Director of Community Development 73 $12,277 $15,960 1 2025-XX Deputy Director of Maintenance and Facilities 73 $12,277 $15,960 1 2025-XX Information Technology Manager 72 $11,977 $15,570 1 2025-XX Accounting Manager 71 $11,685 $15,191 1 2025-XX
Planning Manager 71 $11,685 $15,191 0 2025-XX
CIP Manager 70 $11,400 $14,820 1 2025-XX
Traffic Engineering Manager 70 $11,400 $14,820 1 2025-XX City Clerk 69 $11,122 $14,459 1 2025-XX
Human Resources Manager 69 $11,122 $14,459 1 2025-XX
Public Works Maintenance Manager 69 $11,122 $14,459 0 2025-XX Principal Civil Engineer 68 $10,851 $14,106 1 2025-XX
Facilities Manager 66 $10,328 $13,426 1 2025-XX
Economic Development/Housing Manager 65 $10,076 $13,099 1 2025-XX Recreation Manager 65 $10,076 $13,099 2 2025-XX
Assistant to the City Manager 63 $9,591 $12,468 1 2025-XX Principal Planner 63 $9,591 $12,468 0 2025-XX
Public Safety Manager 63 $9,591 $12,468 1 2025-XX
Code Enforcement Manager 62 $9,357 $12,164 0 2025-XX
Communications & Marketing Manager 61 $9,128 $11,867 1 2025-XX Senior Information Technology Analyst 60 $8,906 $11,577 0 2025-XX Accounting Supervisor 59 $8,688 $11,295 0 2025-XX
Classification Plan and Compensation Schedule
FY 2025-26
Effective June 20, 2025
Monthly Range
Minimum Annual Effective Date
if Different
Monthly Range
Maximum Resolution # Council
Meeting Date# of Pos AuthFull Time Job Classification* Salary Grade
1 Item: 11
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Classification Plan and Compensation Schedule
FY 2025-26
Effective June 20, 2025
Monthly Range
Minimum Annual Effective Date
if Different
Monthly Range
Maximum Resolution # Council
Meeting Date# of Pos AuthFull Time Job Classification* Salary Grade
Administrative Services Manager 59 $8,688 $11,295 1 2025-XX Environmental Manager 59 $8,688 $11,295 1 2025-XX
Senior Planner 59 $8,688 $11,295 3 2025-XX
Senior Street Maintenance Administrator 58 $8,477 $11,019 1 2025-XX Economic Development Manager 57 $8,270 $10,751 0 2025-XX Housing Manager 57 $8,270 $10,751 0 2025-XX
Senior Financial Analyst 57 $8,270 $10,751 0 2025-XX
Senior Management Analyst 57 $8,270 $10,751 2 2025-XX
Code Enforcement Supervisor 56 $8,068 $10,489 1 2025-XX Information Technology Analyst 56 $8,068 $10,489 2 2025-XX Senior Recreation Supervisor 56 $8,068 $10,489 3 2025-XX Facilities Supervisor 55 $7,871 $10,233 1 2025-XX
Public Works Supervisor 55 $7,871 $10,233 0 2025-XX
Senior Communications & Marketing Analyst 55 $7,871 $10,233 1 2025-XX Senior Landscape Administrator 54 $7,679 $9,983 2 2025-XX Street Maintenance Administrator 54 $7,679 $9,983 0 2025-XX Senior Accountant 53 $7,492 $9,740 0 2025-XX
Associate Planner 52 $7,309 $9,502 1 2025-XX
Environmental Compliance Inspector 52 $7,309 $9,502 1 2025-XX GIS/Applications Analyst 52 $7,309 $9,502 0 2025-XX
Communications & Marketing Analyst 51 $7,131 $9,270 1 2025-XX Finance Analyst 51 $7,131 $9,270 1 2025-XX
Management Analyst 51 $7,131 $9,270 3 2025-XX
Recreation Supervisor 51 $7,131 $9,270 3 2025-XX
Landscape Administrator 50 $6,957 $9,044 1 2025-XX
Senior Code Enforcement Officer 50 $6,957 $9,044 2 2025-XX Accountant 49 $6,787 $8,824 1 2025-XX
Executive Assistant 49 $6,787 $8,824 1 2025-XX
Senior Communications & Marketing Specialist 49 $6,787 $8,824 1 2025-XX Senior Community Outreach Specialist 49 $6,787 $8,824 0 2025-XX Assistant City Clerk 48 $6,622 $8,608 1 2025-XX
Information Technology Specialist 48 $6,622 $8,608 0 2025-XX Communications & Marketing Specialist 47 $6,460 $8,398 0 2025-XX 2 Item: 11
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Classification Plan and Compensation Schedule
FY 2025-26
Effective June 20, 2025
Monthly Range
Minimum Annual Effective Date
if Different
Monthly Range
Maximum Resolution # Council
Meeting Date# of Pos AuthFull Time Job Classification* Salary Grade
Management Assistant 47 $6,460 $8,398 3 2025-XX
Assistant Planner 46 $6,303 $8,194 0 2025-XX
Code Enforcement Officer 46 $6,303 $8,194 2 2025-XX
GIS/Applications Technician 46 $6,303 $8,194 0 2025-XX
Records Coordinator 46 $6,303 $8,194 1 2025-XX
Senior Accounting Technician 46 $6,303 $8,194 2 2025-XX Community Outreach Specialist 45 $6,149 $7,994 1 2025-XX Engineering Technician 45 $6,149 $7,994 0 2025-XX
Senior Facilities Maintenance Specialist 45 $6,149 $7,994 0 2025-XX Senior Audio-Visual Technician 44 $5,999 $7,799 1 2025-XX Senior Building Permit Technician 43 $5,853 $7,609 0 2025-XX Senior Permit Technician 43 $5,853 $7,609 1 2025-XX
Accounting Technician 42 $5,710 $7,423 0 2025-XX
Administrative Specialist 42 $5,710 $7,423 2 2025-XX
Human Resources Technician 42 $5,710 $7,423 0 2025-XX
Building Permit Technician 41 $5,571 $7,242 0 2025-XX
Engineering Aide 41 $5,571 $7,242 0 2025-XX
Facilities Maintenance Specialist 41 $5,571 $7,242 1 2025-XX Management Aide 41 $5,571 $7,242 0 2025-XX
Permit Technician 41 $5,571 $7,242 0 2025-XX
Planning Aide 41 $5,571 $7,242 0 2025-XX
Audio-Visual Technician 40 $5,435 $7,065 0 2025-XX
Community Preservation Technician 40 $5,435 $7,065 0 2025-XX Records Specialist 39 $5,302 $6,893 0 2025-XX
Senior Office Specialist 35 $4,804 $6,245 0 2025-XX
Receptionist/Cashier 33 $4,572 $5,944 0 2025-XX
Office Specialist 31 $4,352 $5,657 0 2025-XX
73Total Authorization Full Time Positions
* Classifications listed above can be filled on a part-time basis at the hourly equivalent of the monthly salary listed. 3 Item: 11
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Part Time Job Classification Pay Grade Hourly Step A Hourly Step B Hourly Step C Hourly Step D Hourly Step E Hourly Step F Hourly Step G Resolution # Recreation Coordinator H12 $30.80 $32.34 $33.96 $35.66 $37.44 $39.31 $41.28 2025-XX H11 $29.33 $30.80 $32.34 $33.96 $35.66 $37.44 $39.31 2025-XX H10 $27.93 $29.33 $30.80 $32.34 $33.96 $35.66 $37.44 2025-XX H9 $26.60 $27.93 $29.33 $30.80 $32.34 $33.96 $35.66 2025-XX H8 $25.33 $26.60 $27.93 $29.33 $30.80 $32.34 $33.96 2025-XX Parking Control Officer H7 $24.12 $25.33 $26.60 $27.93 $29.33 $30.80 $32.34 2025-XX Senior Intern H6 $22.97 $24.12 $25.33 $26.60 $27.93 $29.33 $30.80 2025-XX Recreation Specialist H5 $21.88 $22.97 $24.12 $25.33 $26.60 $27.93 $29.33 2025-XX H4 $20.84 $21.88 $22.97 $24.12 $25.33 $26.60 $27.93 2025-XX Intern; Senior Recreation Leader; Park Attendant H3 $19.85 $20.84 $21.88 $22.97 $24.12 $25.33 $26.60 2025-XX H2 $18.90 $19.85 $20.84 $21.88 $22.97 $24.12 $25.33 2025-XX Recreation Leader H1 $18.00 $18.90 $19.85 $20.84 $21.88 $22.97 $24.12 2025-XX Classification Plan and Compensation Schedule
FY 2025-26
Effective June 20, 2025
4 Item: 11
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ATTACHMENT 2
Item: 11
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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA,

ADOPTING A REVISED CLASSIFICATION PLAN

AND COMPENSATION SCHEDULE

THE CITY COUNCIL OF THE CITY OF LAKE FOREST DOES
HEREBY RESOLVE AS FOLLOWS:

WHEREAS, the Personnel Rules and Regulations for the City of Lake Forest provides for adoption, by resolution, of the Classification Plan and Compensation Schedule; and
WHEREAS, the Classification Plan and Compensation Schedule has been updated to implement salary grade adjustments for eight-five (85) classifications, to add eight (8) new classifications, to reclassify four (4) classifications and to authorize three (3) positions at a higher level, and to implement revisions to the salary ranges for the part-time salary schedule; and
WHEREAS, the Classification and Compensation Plan has been updated based on a recently completed analysis by Ralph Andersen and Associates; and
WHEREAS, the City Council’s adoption of the Classification Plan and Compensation Schedule will ensure compliance with the applicable state regulations that require the disclosure of position classifications and the corresponding compensation; and
WHEREAS, it is necessary to adopt the Classification Plan and Compensation Schedule by resolution.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE

FOREST, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:

SECTION 1. The revised Classification Plan and Compensation Schedule, implementing salary grade adjustments for eighty-five (85) classifications, adding eight (8) new classifications, reclassifying four (4) classifications and authorizing three (3) positions at a higher level and revisions to the salary Item: 11
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ranges for the part-time salary schedule; attached hereto as Attachment A incorporated herein by this reference, is hereby adopted with an effective date of June 3, 2025.

PASSED, APPROVED AND ADOPTED this ___ day of _____, 2025 by the following vote, to wit:
_____________________

SCOTT VOIGTS
MAYOR
ATTEST:
______________________________

THY MERRITT

ACTING CITY CLERK
APPROVED AS TO FORM:
______________________

MATTHEW RICHARDSON

CITY ATTORNEY

STATE OF CALIFORNIA)

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Thy Merritt, Acting City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No.__ was duly passed and adopted at a regular meeting of the Lake Forest City Council on the ___ day of _____, 2025 by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
_______________________

THY MERRITT

ACTING CITY CLERK
Item: 11
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Attachment A
City Manager 1 $308,427 - $322,3067/1/2025 6/3/2025Assistant City Manager 88 $17,780 $23,114 1 2025-XXDeputy City Manager 84 $16,108 $20,940 1 2025-XXDirector of Finance 82 $15,332 $19,931 1 2025-XXDirector of Public Works/City Engineer 82 $15,332 $19,931 1 2025-XXDirector of Community Development 81 $14,958 $19,445 1 2025-XXDirector of Management Services 80 $14,593 $18,971 0 2025-XXDirector of Community Services 79 $14,237 $18,508 0 2025-XXAsst Dir of Public Works/Asst City Engineer 76 $13,221 $17,187 1 2025-XXAssistant Director of Finance 75 $12,898 $16,768 1 2025-XXDirector of Economic Development 75 $12,898 $16,768 0 2025-XXEngineering Services Manager/Asst City Engineer 74 $12,584 $16,359 0 2025-XXAssistant Director of Community Development 73 $12,277 $15,960 1 2025-XXDeputy Director of Maintenance and Facilities 73 $12,277 $15,960 1 2025-XXInformation Technology Manager 72 $11,977 $15,570 1 2025-XXAccounting Manager 71 $11,685 $15,191 1 2025-XXPlanning Manager 71 $11,685 $15,191 0 2025-XXCIP Manager 70 $11,400 $14,820 1 2025-XXTraffic Engineering Manager 70 $11,400 $14,820 1 2025-XXCity Clerk 69 $11,122 $14,459 1 2025-XXHuman Resources Manager 69 $11,122 $14,459 1 2025-XXPublic Works Maintenance Manager 69 $11,122 $14,459 0 2025-XXPrincipal Civil Engineer 68 $10,851 $14,106 1 2025-XXFacilities Manager 66 $10,328 $13,426 1 2025-XXEconomic Development/Housing Manager 65 $10,076 $13,099 1 2025-XXRecreation Manager 65 $10,076 $13,099 2 2025-XXAssistant to the City Manager 63 $9,591 $12,468 1 2025-XXPrincipal Planner 63 $9,591 $12,468 0 2025-XXPublic Safety Manager 63 $9,591 $12,468 1 2025-XXCode Enforcement Manager 62 $9,357 $12,164 0 2025-XXCommunications & Marketing Manager 61 $9,128 $11,867 1 2025-XXSenior Information Technology Analyst 60 $8,906 $11,577 0 2025-XXAccounting Supervisor 59 $8,688 $11,295 0 2025-XXAdministrative Services Manager 59 $8,688 $11,295 1 2025-XXEnvironmental Manager 59 $8,688 $11,295 1 2025-XXSenior Planner 59 $8,688 $11,295 3 2025-XXSenior Street Maintenance Administrator 58 $8,477 $11,019 1 2025-XXEconomic Development Manager 57 $8,270 $10,751 0 2025-XXHousing Manager 57 $8,270 $10,751 0 2025-XXSenior Financial Analyst 57 $8,270 $10,751 0 2025-XXSenior Management Analyst 57 $8,270 $10,751 2 2025-XXCode Enforcement Supervisor 56 $8,068 $10,489 1 2025-XXInformation Technology Analyst 56 $8,068 $10,489 2 2025-XXSenior Recreation Supervisor 56 $8,068 $10,489 3 2025-XXFacilities Supervisor 55 $7,871 $10,233 1 2025-XXPublic Works Supervisor 55 $7,871 $10,233 0 2025-XXSenior Communications & Marketing Analyst 55 $7,871 $10,233 1 2025-XXSenior Landscape Administrator 54 $7,679 $9,983 2 2025-XXStreet Maintenance Administrator 54 $7,679 $9,983 0 2025-XXSenior Accountant 53 $7,492 $9,740 0 2025-XXAssociate Planner 52 $7,309 $9,502 1 2025-XXEnvironmental Compliance Inspector 52 $7,309 $9,502 1 2025-XXGIS/Applications Analyst 52 $7,309 $9,502 0 2025-XXCommunications & Marketing Analyst 51 $7,131 $9,270 1 2025-XXFinance Analyst 51 $7,131 $9,270 1 2025-XXManagement Analyst 51 $7,131 $9,270 3 2025-XXRecreation Supervisor 51 $7,131 $9,270 3 2025-XXLandscape Administrator 50 $6,957 $9,044 1 2025-XXSenior Code Enforcement Officer 50 $6,957 $9,044 2 2025-XXAccountant 49 $6,787 $8,824 1 2025-XXExecutive Assistant 49 $6,787 $8,824 1 2025-XXSenior Communications & Marketing Specialist 49 $6,787 $8,824 1 2025-XXSenior Community Outreach Specialist 49 $6,787 $8,824 0 2025-XXAssistant City Clerk 48 $6,622 $8,608 1 2025-XXInformation Technology Specialist 48 $6,622 $8,608 0 2025-XXCommunications & Marketing Specialist 47 $6,460 $8,398 0 2025-XXManagement Assistant 47 $6,460 $8,398 3 2025-XXAssistant Planner 46 $6,303 $8,194 0 2025-XXCode Enforcement Officer 46 $6,303 $8,194 2 2025-XXGIS/Applications Technician 46 $6,303 $8,194 0 2025-XXRecords Coordinator 46 $6,303 $8,194 1 2025-XXSenior Accounting Technician 46 $6,303 $8,194 2 2025-XXCommunity Outreach Specialist 45 $6,149 $7,994 1 2025-XXEngineering Technician 45 $6,149 $7,994 0 2025-XXSenior Facilities Maintenance Specialist 45 $6,149 $7,994 0 2025-XXSenior Audio-Visual Technician 44 $5,999 $7,799 1 2025-XXSenior Building Permit Technician 43 $5,853 $7,609 0 2025-XXSenior Permit Technician 43 $5,853 $7,609 1 2025-XXAccounting Technician 42 $5,710 $7,423 0 2025-XXAdministrative Specialist 42 $5,710 $7,423 2 2025-XXHuman Resources Technician 42 $5,710 $7,423 0 2025-XXBuilding Permit Technician 41 $5,571 $7,242 0 2025-XXEngineering Aide 41 $5,571 $7,242 0 2025-XXFacilities Maintenance Specialist 41 $5,571 $7,242 1 2025-XXManagement Aide 41 $5,571 $7,242 0 2025-XXPermit Technician 41 $5,571 $7,242 0 2025-XXPlanning Aide 41 $5,571 $7,242 0 2025-XXAudio-Visual Technician 40 $5,435 $7,065 0 2025-XXCommunity Preservation Technician 40 $5,435 $7,065 0 2025-XXRecords Specialist 39 $5,302 $6,893 0 2025-XXSenior Office Specialist 35 $4,804 $6,245 0 2025-XXReceptionist/Cashier 33 $4,572 $5,944 0 2025-XXOffice Specialist 31 $4,352 $5,657 0 2025-XX73Total Authorization Full Time Positions* Classifications listed above can be filled on a part-time basis at the hourly equivalent of the monthly salary listed.

Classification Plan and Compensation ScheduleFY 2025-26Effective June 20, 2025Monthly Range Minimum Annual Effective Date if DifferentMonthly Range Maximum Resolution #Council Meeting Date# of Pos AuthFull Time Job Classification* Salary Grade Item: 11
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Part Time Job Classification Pay GradeHourly Step AHourly Step BHourly Step CHourly Step DHourly Step EHourly Step FHourly Step GResolution #Recreation Coordinator H12 $30.80 $32.34 $33.96 $35.66 $37.44 $39.31 $41.28 2025-XXH11 $29.33 $30.80 $32.34 $33.96 $35.66 $37.44 $39.31 2025-XXH10 $27.93 $29.33 $30.80 $32.34 $33.96 $35.66 $37.44 2025-XXH9 $26.60 $27.93 $29.33 $30.80 $32.34 $33.96 $35.66 2025-XXH8 $25.33 $26.60 $27.93 $29.33 $30.80 $32.34 $33.96 2025-XXParking Control Officer H7 $24.12 $25.33 $26.60 $27.93 $29.33 $30.80 $32.34 2025-XXSenior Intern H6 $22.97 $24.12 $25.33 $26.60 $27.93 $29.33 $30.80 2025-XXRecreation Specialist H5 $21.88 $22.97 $24.12 $25.33 $26.60 $27.93 $29.33 2025-XXH4 $20.84 $21.88 $22.97 $24.12 $25.33 $26.60 $27.93 2025-XXIntern; Senior Recreation Leader; Park Attendant H3 $19.85 $20.84 $21.88 $22.97 $24.12 $25.33 $26.60 2025-XXH2 $18.90 $19.85 $20.84 $21.88 $22.97 $24.12 $25.33 2025-XXRecreation Leader H1 $18.00 $18.90 $19.85 $20.84 $21.88 $22.97 $24.12 2025-XX Attachment A
Item: 11
190

ATTACHMENT 3
Item: 11
191

Proposed Changes to Personnel Rules and Regulations – Summarized Attachment 5
Chapter 2 - Recruitment, Selection, Appointment, and Probation (Attachment 4, Page 9)
Section Change
Section 2.6 – Method of Filling Vacancies,
Paragraph 6, Sections A and B:

Provisional Appointment for Vacancies in
Competitive Service
Add language to ensure compliance with
CalPERS regulations regarding the term
limits of provisional appointments.

Chapter 3 – Discipline
(Attachment 4, Page 13-21)
Section Change
Section 3.3 – Progressive Discipline,
Paragraph 2 : Written Reprimands, Section A,
(2)
Section 3.3 – Progressive Discipline,
Paragraph 3: Suspension Without Pay
Section 3.3 – Progressive Discipline,
Paragraph 3: Suspension Without Pay,
Section A: Due Process for Unpaid
Suspensions of Forty (40) hours or less
Section 3.3 – Progressive Discipline,
Paragraph 3: Suspension Without Pay,
Section B: Due Process for Unpaid
Suspensions of forty (40) hours or more
Section 3.3 – Progressive Discipline,
Paragraph 4: Involuntary Demotion
Section 3.3 – Progressive Discipline,
Paragraph 5: Reduction in Pay
Section 3.4 - Imposition of Discipline,
Paragraph 1: Minor Discipline by
Supervisor/Department Director
Section 3.4 - Imposition of Discipline,
Paragraph 1: Minor Discipline by
Supervisor/Department Director Section B:

Appeal Rights
Add language to update due process to
only include written response.

Add language to clarify suspension
process for exempt employees.

Add language to update due process
response time for unpaid suspensions,
of forty (40) hours or less, to five (5)
business days.

Add language to update due process for
unpaid suspensions forty (40) hours or
more.

Update language to clarify involuntary
demotion due process.

Update language to clarify reduction in
pay due process.

Add language to include “Minor
Discipline.”
Add language to clarify appeal rights for
unpaid suspension.

Item: 11
192

Proposed Changes to Personnel Rules and Regulations – Summarized Attachment 5
Chapter 3 – Discipline
(Attachment 4, Page 13-21)
Section Change
Section 3.4 - Imposition of Discipline,
Paragraph 1: Minor Discipline by
Supervisor/Department Director Section B:

Appeal Rights (1)
Section 3.4 - Imposition of Discipline,
Paragraph 2: Major Discipline by Department
Director/Personnel Officer/City Manager or
Designee
Section 3.4 - Imposition of Discipline,
Paragraph 2: Major Discipline by Department
Director/Personnel Officer/City Manager or
Designee, Section A
Section 3.4 - Imposition of Discipline,
Paragraph 2: Major Discipline by Department
Director/Personnel Officer/City Manager or
Designee., Section B: Notice of Discipline
Required
Section 3.4 - Imposition of Discipline,
Paragraph 2: Major Discipline by Department
Director/Personnel Officer/City Manager or
Designee., Section E: Oral Response to
Notice
Section 3.10 – Delivery of Notice
Section 3.11 – Right of Appeal, Section A
Section 3.12 – Rules on Appeal to the City
Manager, Paragraph 1: Right of Appeal
Add language to clarify the Personnel
Officer’s role in appeal process.

Add language to include “Major
Discipline.”
Add language to clarify discipline types.

Remove language that references
section that does not apply.

Add language to include Department
Director, Personnel Officer or designee.

Remove language referencing certified
mail and return receipt.

Remove language referencing Section

3.3, Paragraph 3 (provided the
suspension without pay is for more than
forty (40) hours), Paragraph 4,
Paragraph 5, and Paragraph 6.

Remove language referencing Section

3.3, Paragraph 3 (provided the
suspension without pay is for more than
forty (40) hours), Paragraph 4,
Paragraph 5, and Paragraph 6.

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193

Proposed Changes to Personnel Rules and Regulations – Summarized Attachment 5
Chapter 3 – Discipline
(Attachment 4, Page 13-21)
Section Change
Section 3.12 – Rules on Appeal to the City
Manager, Paragraph 3: Notice
Section 3.12 – Rules on Appeal to the City
Manager, Paragraph 7: Notice
Remove language of fifteen (15) days
and add language “Within a reasonable
amount of time.”
Add language “The City Manager or
designee may extend the time for issuing
a decision based on reasonable cause.”
Chapter 6 – Compensation and Hours
(Attachment 4, Page 31)
Section Change
Section 6.4 – Performance Compensation
Plan, Paragraph 3, Section C: Structural
Movement Increase Policy
Remove language stating that structural
movement increases are applied only
after any Pay for Performance increase.

Chapter 7 – Employee Benefits
(Attachment 4, Page 37)
Section Change
Section 7.1 Health Insurance/Cash In Lieu
and Life Insurance Paragraph 3: Cash In Lieu
Add language clarifying that employees
on unpaid leave are not eligible to
receive cash in lieu.

Chapter 8 – Leave
(Attachment 4, Page 42)
Section Change
Section 8.1 – Vacation Leave,
Paragraph 1: Full-Time Employees
Section 8.3 – Holidays
Remove the vacation accrual schedule
and move it to Exhibit A of the Personnel
Rules and Regulations.

Add language to clarify holiday leave
amounts based on the employee’s work
schedule.

Remove the requirement that holiday
leave must be used within the calendar
year.

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194

Proposed Changes to Personnel Rules and Regulations – Summarized Attachment 5
Exhibit A
(Attachment 4, Page 66-69)
Section Change
N/A Add eight new job classifications for the
adoption of the Classification and
Compensation Plan.

Move the Assistant City Clerk position
from Category D to Category C.

Increase Management Leave by 16
hours annually for employees in
Categories A through C.

Update Vacation Leave accrual.

Item: 11
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ATTACHMENT 4
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1 PERSONNEL RULES AND REGULATIONS
CHAPTER 1

INTRODUCTION

1.1 PERSONNEL SYSTEM
In order to establish an equitable and uniform procedure for dealing with personnel matters, to attract to municipal service the best and most competent persons available, to assure that appointments and promotions of employees will be based on merit and fitness, and to provide a reasonable degree of security for qualified employees, the following personnel system is hereby adopted.

1.2 GENERAL PROVISIONS
Paragraph 1: Adoption, Amendment, and Revision. Municipal Code Sections 2.60.030 and 2.60.050 authorize the adoption and revision of “personnel policies and procedures” by the City Manager, subject to review by the City Council except those policy matters which require commitment of financial resources which will be recommended to and approved by the City Council. These Personnel Rules shall be adopted and amended from time to time as “personnel policies and procedures” in accordance with the Municipal Code. The City Manager shall determine which, if any, policies, or revisions will be recommended to and adopted by the City Council.

Paragraph 2: Fair Employment. No employee shall be promoted, demoted, terminated, or in any way favored or discriminated against, because of political opinions or affiliations, genetic characteristics or information, race, color, national origin, ancestry, religion, , sex, gender identity, gender expression, gender (including pregnancy, childbirth, breastfeeding or related medical conditions), physical or mental disability, medical condition , marital status, military or veteran status, sexual orientation, age (40 and over), reproductive health decision making or any basis protected by applicable federal, state, or local law; or because of the exercise of his or her rights under the Meyers-Milias-Brown Act.

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2 Paragraph 3: Violation of Rules. Violation of the provisions of these Personnel Rules shall be grounds for rejection or discipline, up to and including dismissal.

1.3 COMPETITIVE SERVICE
The provisions of these Personnel Rules shall apply to all officers and employees in the competitive service of the City. The following officers and employees shall be excluded from the competitive service:

A. Members of the City Council.

B. Members of the appointive boards, commissions, and committees.

C. Persons engaged under contract to supply expert, professional, or technical services for a definite period of time.

D. Volunteer personnel, who receive no regular compensation from the City.

E. City Attorney and City Manager.

F. Department Directors, City Clerk, City Treasurer, and other management positions designated in writing by the City Manager, except where expressly provided.

G. Emergency employees who are hired to meet the immediate requirements of an emergency condition, such as an extraordinary fire, flood, or earthquake that threatens life or property.

H. Any position is primarily funded under a State or Federal employment program.

I. Part-time, seasonal, provisional, or temporary employees. Also excluded are employees who are not full-time regular employees.

J. Any new position hereafter created by the City Council, unless declared by the City Council to be in the competitive service at the time of creation or thereafter.

Employees excluded from the competitive service under this Section shall serve at the will of their appointing authority.

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3 1.4 APPLICABILITY OF RULES TO CERTAIN POSITIONS EXCLUDED FROM

COMPETITIVE SERVICE
Paragraph 1: City Manager, Department Directors, City Clerk, City Treasurer, Probationary Employees, and Designated Positions.

The following provisions of these Personnel Rules do not apply to the City Manager, Department Directors, City Clerk, City Treasurer, probationary employees, and designated positions, unless otherwise specified:

Chapter 2: Sections: 2.1, 2.2 Paragraph 1, 2.4, 2.5, 2.6, 2.7, 2.9 Paragraphs 2 and 3
Chapter 3: All
Chapter 5: Section: 5.2
Chapter 6: Sections: 6.1, 6.3
Paragraph 2: Part-Time, Seasonal, Provisional, and Temporary Employees.

The following provisions of these Personnel Rules do not apply to part-time, seasonal, provisional, or temporary employees, unless otherwise specified:

Chapter 2 : Sections : 2.1, 2.2 Paragraph 1, 2.4, 2.5, 2.6, 2.7, 2.9 Chapter 3 : All
Chapter 5 : Section : 5.2
Chapter 6 : Sections : 6.1, 6.2, 6.4, 6.9
Chapter 7: Sections: 7.1, 7.2, 7.3, 7.4, 7.7 Paragraph 2, 7.9, 7.10,

7.11, 7.12.

Chapter 8: Sections: 8.1, 8.2, 8.3, 8.9, 8.11

1.5 PERSONNEL OFFICER
The City Manager or the City Manager’s designee shall be the Personnel Officer except in those instances provided for in the Lake Forest Municipal Code. The City Manager may delegate any of the powers and duties conferred on the Personnel Officer under the Personnel Ordinance and these Personnel Rules to any other officer or employee of the City or may recommend that such powers and duties be performed under contract as provided in Section 9.4, “Right to Contract for Special Services.” The Personnel Officer shall:
•Administer all the provisions of the Personnel Ordinance and of the Personnel Rules not specifically reserved to the City Council.

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4 •Prepare and recommend to the City Manager Personnel Rules and revisions and amendments to such Personnel Rules subject to City Council review, or approval when deemed required.
•Prepare or cause to be prepared a Position Classification Plan, including class specifications and revisions of the Plan. The Plan, and any revisions to it, shall become effective upon approval by the City Council.
•Provide for the publishing or posting of notices of vacant positions within the competitive service, the receiving of applications therefore, the conducting and grading of any necessary tests, and the certification to the appointing authority of a list of all persons eligible for appointment to the appropriate position in the competitive service.

1.6 PERSONNEL REPORTS AND FILES
Paragraph 1: Personnel File. The Personnel Officer shall maintain a service or personnel file for each employee in the service of the City showing the name, title, or position held; the department to which assigned; salary; change in employment status; and such other information as may be considered pertinent.

Paragraph 2: Change of Status Report. Every appointment, transfer, promotion, demotion, change of salary rate, and any other temporary or permanent change in status of employees shall be reported to the Personnel Officer in such manner as he/she may prescribe.

Paragraph 3: Maintenance of Personnel Records. The City will maintain a copy of each employee’s personnel record for a period of not less than six years after termination.

Paragraph 4: Inspection of Personnel Records. Current and former employees have a right to inspect their personnel files. When requested, the City will make the contents of the personnel files available to current or former employees, or their representatives, at reasonable intervals and at reasonable times, but no later than 30 calendar days from the date which the employer receives the written request and will provide a copy upon request.

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5 CHAPTER 2

RECRUITMENT, SELECTION, APPOINTMENT, AND PROBATION

2.1 GENERAL PROVISIONS REGARDING APPOINTMENTS
A. Appointments to vacant positions in the competitive service shall be made in accordance with the Personnel Rules. Appointments and promotions shall be based on merit and fitness to be ascertained by selection techniques that will test fairly the qualifications of candidates. Examinations, such as written tests, personal interviews, performance tests, physical agility tests, evaluation of daily work performance, work samples, or any combination of these or other tests, may be used and conducted to aid in the selection of qualified employees. In any examination, the Personnel Officer may include, in addition to competitive tests, a qualifying test or tests and set minimum standards thereof.

B. Appointments shall be made by the City Council when required by the Lake Forest Municipal Code for City Council appointments; otherwise, they shall be made by the City Manager.

2.2 APPLICATIONS AND APPLICANTS
Paragraph 1: Announcement. When vacancies occur in the competitive service, all such vacancies shall be publicized by such methods the Personnel Officer deems appropriate.

Paragraph 2: Application Forms. Applications shall be made as prescribed on the announcement of the vacancy. Application forms shall require information covering training, experience, and other pertinent information, and may include references, background checks, and fingerprinting.

Paragraph 3: Disqualification. The Personnel Officer may reject any application which indicates on its face that the applicant does not possess the minimum qualifications required for the position. Applications may be rejected if the applicant is deemed unable or unfit to perform the duties of the position, has made any false statement of any material fact, or practiced any deception or fraud in his or her application.

Paragraph 4: Proof of Right to Work. Under Federal law, all newly hired employees must produce original documentation establishing their identity and right to work in the United States, and complete INS Form I-9, Item: 11
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6 swearing that they have a right to work in the United States. The City will require new employees to complete the I-9 and provide documentation on the first day of work. Required documentation must be presented to the Personnel Officer, who will be responsible for processing the documents.

Failure to comply with this paragraph will result in termination.

2.3 PRE-EMPLOYMENT PHYSICAL EXAMINATIONS
Paragraph 1: Physical examination. All applicants, who are offered a position with the City of Lake Forest, may be required to undergo a pre- employment physical examination at the City’s expense if the Personnel Officer determines such an examination is necessary for the position (job related and consistent with business necessity) to determine whether an applicant is able to perform the essential functions of the job, with or without accommodations. All applicants entering the same job classification will be subject to the same examination.

Paragraph 2: Drug Testing. As part of the City’s pre-employment screening process, applicants who are deemed “safety sensitive” as determined by the Personnel Officer who are offered employment with the City of Lake Forest, will be required to pass a test for controlled substances, under procedures described in the City of Lake Forest’s Drug and Alcohol- Free Workplace Policy.

2.4 EXAMINATIONS
Paragraph 1: Nature and Types of Examinations. The selection of techniques used in the examination process shall be impartial and relate to those subjects which, in the opinion of Department Directors, and approved by the Personnel Officer, fairly measure the relative capacities of the persons examined to execute the duties and responsibilities of the class to which they seek to be appointed. Examinations shall consist of selection techniques that will test fairly the qualifications of candidates. When an oral board or panel is used, the majority of the board or panel shall be composed of persons, who are not City personnel, with similar experience or expertise in the field as the position being filled.

Paragraph 2: Promotional Examinations. Promotional examinations may be conducted whenever, in the opinion of the Department Directors and Personnel Officer, they are required. Only regular, probationary, and part- time employees who meet the requirements set forth in the promotional examination announcements may compete in promotional examinations.

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7 Paragraph 3: Conduct of Examinations. The City may contract with any competent agency or individual for the preparation and/or administration of examinations. In the absence of such a contract, the Personnel Officer will see that such duties are performed. The Personnel Officer shall arrange for the use of the necessary equipment and facilities to conduct the examinations.

2.5 EMPLOYMENT LISTS
Paragraph 1: Employment Lists. As soon as possible after the completion of the selection process, the Personnel Officer shall prepare and maintain an employment list consisting of the names of candidates who qualified.

Paragraph 2: Duration of Lists. Employment lists shall remain in effect for one year unless sooner exhausted or abolished by the Personnel Officer upon the recommendation of the appointing authority. An employment list may be extended for six months upon approval of the Personnel Officer.

Paragraph 3: Lay Off and Reemployment Lists. The names of regular and probationary employees laid off, or demoted in lieu of lay off, shall be placed on reemployment lists for two years for those classes requiring the same qualifications, duties, and responsibilities of the class from which lay off or demotion in lieu of lay off was made, unless such persons are sooner reemployed.

A. Persons whose names are placed on reemployment lists in accordance with this Paragraph, and who are reemployed within the prescribed period, shall be regarded as having been on unpaid leave of absence during this period of absence.

B. When a reemployment list is to be used to fill vacancies, the Personnel Officer shall certify all of the names on the list for consideration by the appointing authority.

Paragraph 4: Removal of Names From List. The name of any person appearing on an open-employment, reemployment, or promotional- employment list shall be removed by the Personnel Officer if the eligible person requests in writing that his/her name be removed, if he/she fails to respond to a notice of certification mailed to his/her last known address, or for any of the reasons specified in these Personnel Rules. The person affected shall be notified of the removal of his/her name by a notice mailed Item: 11
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8 to his or her last known address. The names of persons on promotional- employment lists who resign or are terminated from the service shall automatically be dropped from such lists.

Paragraph 5: Employment Lists Confidential. Employment lists are confidential and the relative position of an eligible person on a list or his/her score shall not be made available except to the person or to the head of the department or division where he/she is considered for appointment.

2.6 METHOD OF FILLING VACANCIES
Paragraph 1: Types of Appointments. All vacancies in the competitive service shall be filled by transfer, demotion, reinstatement, or from eligible persons certified by the Personnel Officer from an appropriate employment list. In the absence of persons eligible for appointment in these ways, provisional appointments may be made in accordance with the Personnel Ordinance and these Personnel Rules.

Paragraph 2: Notice to Personnel Officer. If a vacancy in competitive service is to be filled, the appointing authority shall notify the Personnel Officer in the manner prescribed.

Paragraph 3: Transfer or Demotion. If the appointing authority determines to fill the vacancy by transfer or demotion, the Personnel Officer shall post notice of such vacancy in areas accessible to all personnel and utilize all reasonable means to assure that employees are informed.

Interested employees will be expected to apply to the Personnel Officer in the manner prescribed in the notice. The Personnel Officer shall certify the eligibility of those screened for availability with the Department Director of whom they are assigned and the appointing authority – if different.

Paragraph 4: Certification of Eligible Persons. If the appointing authority determines to fill the vacancy from an employment list, certification shall be made from an appropriate promotional-employment list or an open-employment list.

A. When the appointing authority requests a vacancy be filled by appointment from a promotional-employment list or from an open-employment list, the Personnel Officer should certify (from the specified list of names) all individuals willing to accept appointment.

Paragraph 5: Appointment. After interviewing and investigating, the appointing authority shall make an appointment from among those certified Item: 11
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9 and shall immediately notify the Personnel Officer of the person appointed.

The Personnel Officer shall notify the appointee of the selection and the date for processing. The person accepting the appointment shall present himself/herself to the Personnel Officer, or the designated City representative, for processing on or before the date of appointment. If the applicant does not present himself/herself within such a period of time, he/she shall be deemed to have declined the appointment.

Paragraph 6: Provisional Appointment For Vacancies in Competitive Service.

A. In the absence of individuals willing to accept appointments from appropriate employment lists, a provisional appointment may be made by the appointing authority of a person meeting the minimum training and experience qualifications for the position. The term of a provisional appointment shall not exceed 960 hours per Fiscal Year. six (6) months.

B. When a position in the competitive service is temporarily vacant due to a leave of absence of the employee appointed to that position, the appointing authority may provisionally appoint an individual to temporarily serve in that position while the permanently appointed individual is on leave. The term of such provisional appointments shall be at-will and not exceed 960 hours per Fiscal Year.may exceed six (6) months.

C. A provisional employee may be removed at any time without the right of appeal or hearing. No special credit shall be allowed in meeting any qualifications or in the giving of any test or the establishment of any open- employment or promotional-employment lists for service rendered under a provisional appointment.

2.7 PROBATIONARY PERIOD
Paragraph 1: Term of Probationary Period. All original appointments shall be tentative and subject to a probationary period of one (1) year unless the employee is notified of a longer period. Promotional appointments shall be subject to a probationary period of six (6) months unless the employee is notified of a longer period. Probationary periods may be extended if an employee is absent from work for more than one month total during their probationary period.

Paragraph 2: Purpose of Probationary Period. The primary purpose of the probationary period is to provide an effective environmental orientation for the employee, educating him/her in prevailing management Item: 11
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10 attitudes, policies, and procedures, and training him/her in the tasks associated with the assignment. The probationary period shall be regarded as a part of the testing process and shall be utilized for closely observing the employee’s work, for securing the most effective adjustment of a new employee to this position, and for determining if he/she is capable of meeting the requirements of the assignment.

Paragraph 3: Extend Probationary Period.

A. The Department Director may determine to extend the probationary period if more on-the-job training is warranted, or if further observation of the employee is desired based on unique circumstances to allow a full and fair evaluation of the probationary employee during the probationary period. The Department Director, upon approval of the City Manager, may extend a probationary period of a maximum of six (6) months, but extensions may not be used to uniformly change the length of the probationary period.

B. A leave of absence in excess of fifteen (15) working days will cause the employee’s probationary period to automatically be extended by the length of the leave of absence. An employee who is suspended will have his or her probation automatically extended by the length of the suspension unless the suspension results in the employee’s termination.

Paragraph 4: Rejection of Probationer. During the probationary period, an employee may be rejected at any time by the appointing authority without cause and without the right of appeal. Additionally, no probationary employee has property or vested rights to his or her position with the City and will not be entitled to an appeal or a hearing. Written notification of rejection shall be given by the appointing authority to the employee and a copy filed with the Personnel Officer. Notice shall be given to the employee personally or by mail at the employee’s last known address. This paragraph will apply only to original appointments and not to promotional appointments.

Paragraph 5: Rejection Following Promotion. Any employee rejected during the probationary period following a promotional appointment is entitled to be reinstated to the position from which the employee was promoted if it is vacant. If the employee’s former position has been deleted or abolished, or is not vacant, the employee may be placed in a vacant position in the same classification from which the employee was promoted. If there are no such vacant positions, the employee shall be terminated from City service. An employee will also not be reinstated to the position or class Item: 11
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11 if the employee is terminated in the manner provided in the Personnel Ordinance and these Personnel Rules.

Paragraph 6: Regular Appointment Following Probationary Period.

If the service of the probationary employee has been satisfactory to the Department Director, then the Department Director is entitled to file with the appointing authority or Personnel Officer a written evaluation to such effect and stating that the retention of such an employee in the competitive service is desired after completing probation. The probationary employee shall become a regular employee at the end of the probationary period unless the probationer is rejected, during the probationary period in accordance with Section 2.7, Paragraph 4 above.

2.8 BACKGROUND INVESTIGATION
Following an offer of employment, an applicant will be subject to a background investigation, which may include fingerprinting for a criminal records search, checking references and employment history, a DMV check, and a credit check for applicable positions. An applicant must successfully undergo any investigation deemed necessary by the Personnel Officer as a prerequisite for employment. A criminal conviction will not be an automatic bar to employment, and the City will undertake an individualized assessment.

2.9 TRANSFER, PROMOTION, AND REINSTATEMENT
Paragraph 1: Transfer. No employee shall be transferred into a position for which the employee does not possess the minimum qualifications. Upon notice to the Personnel Officer, an employee may be transferred by the appointing authority, at any time, from one position to another position in the same or comparable class. For transfer purposes, a comparable class is one with the same maximum salary, involves the performance of similar duties, and requires the same basic qualifications.

If the transfer involves a change from one department to another, both Department Directors must consent thereto, unless the City Manager orders the transfer.

Transfer shall not be used to effectuate a promotion, demotion, or reduction, each of which may be accomplished only as provided in the Personnel Ordinance and these Personnel Rules. The employee may appeal the denial of transfer by the releasing department to the City Manager. The City Manager will review such actions to ensure that consideration is given to the employee’s rights and operational requirements of the City administration. The decision of the City Manager shall be final.

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12 Paragraph 2: Promotion. The appointing authority may choose to fill vacancies in the competitive service by promotion.

Paragraph 3: Reinstatement. The appointing authority may reinstate a former employee, within two (2) years of the effective date of resignation, who resigned with a good record to a vacant position in the same or comparable class formerly held. Upon reinstatement, the employee shall be subject to the probationary period prescribed for the class. Credit for the former employment may be granted in computing salary, vacation, sick leave, or other benefits by the appointing authority.

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13 CHAPTER 3

DISCIPLINE

3.1 STANDARD FOR DISCIPLINE
Disciplinary measures may be taken for reasonable cause. The extent of the disciplinary action taken shall be commensurate with the offense, provided that the prior employment history of the employee may also be considered pertinent. Reasonable cause may include violation of the Personnel Ordinance, these Personnel Rules; any written City policy or City procedure; any department rule or regulation; any act of insubordination or act detrimental to the public service of the City; failure to adhere to or follow policies and rules; refusal or inability to comply with the duties of the position occupied by the employee; or any other type of misfeasance, malfeasance, or nonfeasance relating to the employee’s duties, office, or position.

3.2 RANGE OF DISCIPLINARY ACTION
The types of disciplinary actions are verbal reprimands, written reprimands, suspensions without pay, involuntary demotion, reduction in pay, and termination. For each type of disciplinary action, certain steps and due process procedures must be followed. Before taking any action, a supervisor or Department Director who is considering a disciplinary action should discuss the circumstances of the situation with the Personnel Officer unless the particular situation requires immediate action. A supervisor or Department Director, after considering the specific circumstances of each violation, may determine which disciplinary action(s) is(are) appropriate.

3.3 PROGRESSIVE DISCIPLINE
Disciplinary action may, but is not required to be taken in progressive steps as follows:

Paragraph 1: Verbal Reprimands. The supervisor should hold a meeting with the employee. The purpose of the meeting is to explain the employee’s conduct or acts which are in violation of City rules, policies, or practices, or are not meeting the expectations of the position; to remind the employee of the behavior that is expected in the future and the consequences of not meeting the performance expectations. The supervisor shall document the meeting by preparing a memorandum on the matters discussed. This memorandum to file shall be retained by the supervisor.

Paragraph 2: Written Reprimands. The supervisor should prepare a written reprimand. The written reprimand shall constitute notice of the infraction(s) including date, time, and circumstances, as well as a reminder Item: 11
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14 that failure to correct the infractions may result in further disciplinary actions up to and including termination. The supervisor shall present the written reprimand to the employee, who shall be asked to acknowledge receipt, by signing and dating the written reprimand, which shall be placed in the employee’s personnel file and a copy given to the employee.

A. Employees who havereceived written reprimands are entitled to the following due process:
(1) A meeting with the supervisor to receive the written reprimand and to be informed of its contents.
(2) The employee has five (5) business days from receipt of the written reprimand in which to write a response and/or to request and to informally meet with the person issuing the reprimand to discuss its contents. Theresponse. The employee must submit a written response to the Department Director, to be forwarded to the issuer of the written reprimand for consideration. The issuer of the written reprimand will then consider the response and either withdraw the written reprimand or submit it to the Personnel Officer, to be placed in the employee’s personnel file. The employee’s written response, if any, will also be placed in the employee’s personnel file.

Paragraph 3: Suspension Without Pay. An employee may be suspended without pay for up to thirty (30) days. Exempt employees may be suspended without pay for one week or in increments of full weeks for any cause.Employees who are exempt from overtime pay under the Fair Labor Standards Act (“FLSA”) shall Exempt employees may only be suspended without pay for less than one full week for violations of written workplace conduct rules (not performance or attendance issues). Exempt employees may be suspended without pay for one week or in increments of full weeks for any cause.

A. A. Due Process for Unpaid Suspensions of Forty (40) Hours or Less.

When placing an employee on Imposing a suspension for forty (40) hours or less, the supervisor shall prepare a memorandum describing the disciplinary action, the supervisor’s expectations, the employee’s failure to meet the expectations, and a warning that the failure to comply with the reasonable expectations of the supervisor in the future may be grounds for disciplinary action up to and including termination. Employees who are placed on suspension for forty (40) hours or less The employee has five (5) business days from receipt of the notice of suspension in which to write a response.

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15 The employee must submit a written response to the Department Director for consideration. The Department Director will then consider the response and may reduce the discipline or impose the suspension. Notice of the Department Director’s decision will be provided to the employee. The notices of discipline and the employee’s written response, if any, will also be placed in the employee’s personnel file. are entitled to the same due process rights as listed above in Paragraph 2 Section A. The suspension, if any, shall not be served until the procedures described above have been completed.

B. Due Process for Suspensions of More than Forty (40) Hours. When proposing that a competitive service employee be suspended without pay for more than forty (40) hours, the Department Director shall follow all of the steps listed under Section 3.4, Paragraph 2, subsections (A) - (E) and Section

3.11. When placing a competitive service employee on suspension without pay for more than forty (40) hours, the Department Director shall follow all of the steps listed under Section 3.4, Paragraph 2, subsections (A) - (E) and Section 3.11.

Paragraph 3: Involuntary Demotion. An employee may be involuntary demoted by tThe Department Director may demote an employee whose ability to perform his or her required duties falls below standards or for other disciplinary purposes. No employee shall be demoted to a position for which he or she does not possess the minimum qualifications. An employee may be demoted to a classification having a lower salary range.

When demoting proposing that a competitive service employee be demoted, the Department Director supervisor shall follow all of the steps listed under Section 3.4, Paragraph 2, subsections (A) - (E) and Section 3.11.

Paragraph 4: Reduction in Pay. An employee may have their salary reduced by the Department Director. be reduced in salary rate of pay.

When reducing proposing that the salary of a competitive service employee for disciplinary reasons, the Department Personnel Officer shallDirector shall follow all of the steps listed under Section 3.4, Paragraph 2, subsections (A) - (E) and Section 3.11.

Paragraph 5: Termination. When it is necessary to terminate a competitive service employee, the Department Director shall follow all of the steps listed under Section 3.4, Paragraph 2, subsections (A) - (E) and Section

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16 3.4 IMPOSITION OF DISCIPLINE
Paragraph 1: Imposition Minor Discipline by
Supervisor/Department Director.

A. Any discipline described in Section 3.3, Paragraphs 1 - 3, (provided suspension without pay is for forty (40) hours or less) may be imposed by the supervisor with the concurrence of the Department Director.

B. Appeal Rights. Employees who have had an unpaid suspension imposed Any discipline as described in Section 3.3, Paragraph 3 (provided the for suspension without pay is for forty (40) hours or less) shall have the right to appeal the action to the Personnel Officer in writing. The employee shall initiate an appeal by the filing of a written appeal with the Personnel Officer within ten (10) business days of the imposition of discipline. The written appeal shall set forth the reasons and basis for the employee’s disagreement with the discipline.
(1) The Personnel Officer shall prepare and provide deliver to the affected
parties a written decision on the appeal and provide it to the employee.. The decision of the Personnel Officer shall be the final administrative decision of the City.

Paragraph 2: Imposition Major Discipline by Department Director/Personnel Officer/City Manager or
Designee.

A. Any discipline described in Section 3.3, Paragraph 3 (provided the for a suspension without pay of is for more than forty (40) hours) or a reduction in pay, demotion or termination (Paragraphs 4, 5, and 6) Major discipline may only be imposed by the Department Director with the prior written concurrence of the Personnel Officer, the City Manager or designee.

B. Notice of Intent to Discipline Required: A notice of intent to discipline shall be given to the employee whenever the City intends to impose any major discipline described. in Section 3.3, Paragraph 3 (provided the suspension without pay is for more than forty (40) hours) or Paragraphs 4, 5, and 6.

C. Content of Notice of Intent to Discipline: The notice of intent to discipline shall inform the employee of the disciplinary action intended and the effective date of the intended action. Further, it shall set forth the nature of Item: 11
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17 the infraction(s), any previous disciplinary actions taken, how the employee’s conduct has had an adverse impact on the City’s or department’s operation, all materials upon which the action is based, and notification that the employee has the right to respond, orally and or in writing to the proposed discipline.
(1) Whether delivery is made in person or by mail, the notice of intent to discipline shall contain a “statement of delivery or mailing” indicating the date on which the notice of intent was personally delivered or deposited in the United States mail. Such date of delivery or mailing shall be the “date of issuance” of the notice of intent.

D. Written Response to Notice: The employee shall be entitled to respond in writing to the notice of intent to discipline. Such response, if any, must be received by the Personnel Officer, or a designee, within five (5) business days from the date of issuance of the notice of intent to discipline if personally served and ten (10) business days if served by mail.

E. Oral Response to Notice: An employee who receives a notice of intent to discipline may request to respond to the notice of intent. The request for such a response shall be delivered to the Personnel Officer, or a designee, within five (5) business days of the issuance of the notice of intent to discipline if personally served and ten (10) business days if served by mail.

Upon the receipt of a request for an oral response, the Personnel Officer, or a designee, shall schedule a meeting to take place with the employee and supervisor Department Director, the Personnel Officer or designee to receive the oral response. An employee who has requested an oral response in accordance with this subsection may at their own election and cost retain representation for the presentation of the oral response conducted under this subsection.

F. Personnel Officer Determination: Following the review of the oral or written response, the Personnel Officer, or a designee — with the Personnel Officer’s approval — shall issue and deliver to the employee a written statement of its decision to uphold, modify, or reject the proposed disciplinary action. Such action to be taken may not include discipline more severe than that described in the notice of intent; however, the City may reduce such discipline without the issuance of an additional notice of intent.

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18 3.5 PLACEMENT IN PERSONNEL FILE
Official disciplinary action documents shall be placed in the employee’s personnel file.

Official disciplinary documents include disciplinary documents and any evidence supporting the discipline provided to employees in accordance with this Chapter, except that documentation of a verbal reprimand will be retained by the supervisor and not placed in the personnel file.

3.6 EMPLOYEE ACKNOWLEDGMENT
Whenever a disciplinary action is taken, the employee may be asked to sign the document to acknowledge that it was received. Signing to acknowledge receipt by an employee does not indicate that the employee agrees with the facts stated in the document or agrees to the discipline. If an employee refuses to sign the document, the supervisor or Personnel Officer delivering the document will note the employee’s refusal to sign the document and that the employee has received the document.

3.7 ADMINISTRATIVE LEAVE
Paragraph 1: Investigatory Leave. An employee may be placed on an Investigatory leave with pay to allow the employee’s supervisor to review the facts of an alleged violation. Pursuant to Government Code Section 53243, et seq. which became effective of January 1, 2012, if an employee is convicted of a crime involving an abuse of his/her office or position, and the employee has been provided with administrative leave pay pending an investigation, the employee shall be required to fully reimburse such amounts paid. For this Section, abuse of office or position means either:
(1) an abuse of public authority, including waste, fraud, and violation of the law under color of authority; or (2) a crime against public justice, including a crime described in Title 7 commencing with Section 92 of the Penal Code.

Paragraph 2: Leave Pending Disciplinary Action. An employee may be placed on Administrative leave with pay pending an employee’s response to the notice of intent and a determination by the Personnel Officer, or a designee, of the disciplinary action.

3.8 EMERGENCY SUSPENSION
An employee may be removed from the workplace immediately without pay pending an investigation because of an employee’s apparent gross misconduct which has resulted in a potential emergency situation, including, but not limited to, situations which may endanger life or property. Such removal shall not exceed twenty-four (24) hours, at which time the employee shall be given a notice of intent to impose Item: 11
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19 discipline, or returned to full-pay status. If no discipline is imposed, the employee will be repaid for any time off without pay.

3.9 TIME EXTENSIONS
Any time limitations or requirements, as set forth under Chapter 3 may be extended or changed by mutual written agreement of all parties.

3.10 DELIVERY OF NOTICE
When notice is required, the notice shall be given to the affected employee either by delivery of the notice of intent to the employee in person; or by placing the notice of intent in the United States mail, first class, postage paid, and by certified mail, return receipt requested, in an envelope addressed to the employee’s last known home address. It shall be the responsibility of the employee to inform the Personnel Officer in writing, of his or her current home address and of any change in such address, and the information so provided shall constitute the employee’s “last known home address.” Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee.

3.11 RIGHT OF APPEAL
A. Employees shall have the right to appeal any major disciplinary action described in Section 3.3, Paragraph 3 (provided the suspension without pay is for more than forty (40) hours), Paragraph 4, Paragraph 5, and Paragraph 6 to the City Manager or designee. This right is limited where the right to appeal is specifically prohibited by Chapter 2.60 of the Lake Forest Municipal Code, these Personnel Rules, or elsewhere. The right to appeal provided in accordance with these Personnel Rules is exhausted with an appeal to the City Manager level.

B. All appeals shall be concluded as expeditiously as possible and in accordance with the requirements and procedures as set forth in these Personnel Rules.

3.12 RULES ON APPEAL TO THE CITY MANAGER
Paragraph 1: Right of Appeal. Any employee in the competitive service shall have the right to appeal to the City Manager, within seven (7) business days of any major discipline as described in Section 3.3, Paragraph 3 (provided the suspension without pay is for more than forty (40) hours), Paragraph 4, Paragraph 5, and Paragraph 6, except in instances where the right of appeal is specifically prohibited by these Personnel Rules.

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20 Paragraph 2: Method of Appeal. Appeals shall be in writing, signed by the employee (appellant), and filed with the Personnel Officer who shall, within three (3) business days after receipt of the appeal, inform the City Manager, or the appointing authority, and such other persons or officers named or affected by the appeal, of the filing of the appeal. The appeal shall be addressed to the City Manager, explaining the matter appealed from and setting forth therein a statement of the action desired by the appellant with his/her reasons, therefore. The formality of a legal document is not required.

Paragraph 3: Notice. Upon the filing of an appeal, the City Manager may reject it if the appeal is untimely, ambiguous, incomplete, or appeals an issue that is not subject to appeal under these Personnel Rules.

The City Manager may also direct the Personnel Officer, or designee, to set a date for a hearing on the appeal, before the City Manager or designee, not more than fifteen (15) days within a reasonable period after from the date of filing.

Paragraph 4: Investigation. The City Manager or designee may request information relevant to the matter as he/she may deem necessary, and such information shall be made a part of the record of the proceedings.

Paragraph 5: Hearing. The appellant or his/her representative may appear personally before the City Manager or designee at the time and place of the hearing. The parties may produce relevant oral or documentary evidence at the hearing. The City’s case shall be stated first, and at the conclusion, opposition material may then be presented by the appellant.

Rebuttal matters which are not repetitive may be allowed at the discretion of the City Manager or designee. The conduct and decorum of the hearing shall be under the control of the City Manager or designee, with due regard to the rights and privileges of the parties appearing before him or her. Hearings need not be conducted according to technical rules relating to evidence and witnesses. The hearing shall be closed to the public unless the appellant, in writing, requests an open hearing.

Paragraph 6: Subpoenas. A subpoena may be issued when it is deemed necessary to secure the presence of a witness or evidence at a hearing before the City Manager or designee. The party requesting a subpoena must submit the request to subpoena (either evidence or a witness) to the Personnel Officer. The Personnel Officer shall determine if the request for subpoena is appropriate. If the request is appropriate, the Item: 11
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21 Personnel Officer shall cause the subpoena to be prepared and submit it for approval to the Mayor and City Clerk.

Paragraph 7: Findings and Decision. The City Manager or designee shall, within ten (10) business days after the conclusion of the hearing, certify his or her findings and decision in writing, which shall be the final administrative decision of the City. The City Manager or designee may extend the time for issuing a decision based on reasonable cause.

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22 CHAPTER 4

COMPLAINT AND GRIEVANCE PROCEDURE

4.1 PURPOSE OF COMPLAINT AND GRIEVANCE PROCEDURE
It is the City’s purpose to provide an effective and acceptable system whereby employees can seek resolution of complaints or grievances, at the lowest possible level, on matters affecting their jobs. Department Directors and other managers excluded from the competitive service are not eligible to file grievances against the City. All levels of administration and supervision are expected to inform and encourage employees to discuss matters affecting their employment.

4.2 DEFINITIONS
A. Complaint: An allegation or charge by an employee that a wrong has been committed.

B. Complaint Procedure: The process by which a determination is made as to whether or not a wrong has been committed.

C. Grievance: An expressed claim by a regular employee that the City has violated, misinterpreted, or misapplied an obligation to the employee during their employment as such obligation is expressed and written in the City Personnel Ordinance, these Personnel Rules, or other written City policies. Disciplinary actions, the content of performance evaluations, rejection from probation, and denial of merit increases are not subject to the complaint or grievance procedure.

D. Grievance Procedure: The process by which the validity of a grievance is determined.

E. Representative: A person who, at the request of the employee or management, is invited to participate in grievance conferences.

4.3 COMPLAINT PROCEDURE
A. Step 1: The employee should present and review any complaint with the immediate supervisor. At least one conference shall be held between the employee and the immediate supervisor within two (2) business days after the employee has expressed the complaint. The Item: 11
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23 immediate supervisor is required to review every complaint and attempt to settle it as quickly and fairly as possible.

B. Step 2: If the action taken by the immediate supervisor is not satisfactory, the employee may take the complaint to successive levels of supervision up to and including the Personnel Officer. The decision of the Personnel Officer is the final administrative decision.

4.4 GRIEVANCE PROCEDURE
Paragraph 1: Informal Grievance Procedure. The employee shall inform the immediate supervisor orally of the grievance and relevant facts within five (5) business days after the employee knew, or in the exercise of reasonable diligence should have known, of the events giving rise to the grievance. At least one conference shall be held between the employee and the immediate supervisor within two (2) business days after the employee has expressed the grievance. The immediate supervisor shall orally advise the employee of the decision within five (5) business days following the conference.

Paragraph 2: Formal Grievance Procedure.

A. Step 1: If the grievance is not resolved informally, the employee shall put the grievance in writing and submit copies to the immediate supervisor no later than five (5) business days following completion of the informal grievance procedure. The written grievance shall include a citation of the sections of the Personnel Ordinance, Policy, or these Personnel Rules alleged to have been violated and the remedy sought by the employee. A conference shall be held between the employee and the immediate supervisor within two (2) business days after the written grievance is received. The supervisor shall review the grievance and render a written decision to the employee within five (5) business days following the date of the Step 1 grievance conference. The issuance of a decision will complete Step 1.

B. Step 2: In the event that the grievance is not resolved in Step 1, the employee may submit it to the Department Director no later than five (5) business days following completion of Step 1. A conference shall be held between the employee and the Department Director within two (2) business days from the receipt of the Step 2 grievance. The Department Director shall have five (5) business days following the Step 2 grievance conference, in which to review the matter. At the Item: 11
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24 conclusion of this review, a decision in writing shall be given to the employee. The issuance of a decision will complete Step 2.

C. Step 3: In the event that the grievance is not resolved in Step 2, the employee may submit it to the Personnel Officer or designee no later than five (5) business days following completion of Step 2. A conference may be held between the employee and the Personnel Officer within two (2) business days from the receipt of the Step 3 grievance. The Personnel Officer shall have ten (10) business days following the Step 3 grievance conference in which to review the matter. At the conclusion of this review, a decision in writing shall be given to the employee. The decision issued by the Personnel Officer is the final administrative decision of the grievance procedure.

4.5 GENERAL PROVISIONS
A. No retribution or prejudice shall be suffered by employees making use of the grievance or complaint procedures by reason of such use.

B. Forms for filing and processing grievances and other documents necessary under these procedures shall be prepared by the Personnel Officer and given appropriate distribution.

C. All documents, communications, and records dealing with the processing of grievances shall be filed separately from personnel files.

D. Failure at any step of this procedure to communicate the decision on the grievance within specified time limits shall permit the aggrieved employee to proceed to the next step.

E. Failure at any step of this procedure to seek review of a decision on a grievance within specified time limits shall be deemed acceptance of the last decision rendered and waiver of further steps.

F. The time limits specified at any step in this procedure may be extended by mutual written agreement of all parties.

G. Reasonable time off without loss of pay shall be given to an employee who has a complaint or grievance and to the employee’s
representative in order to participate in the complaint and grievance procedures.

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25 CHAPTER 5

SEPARATION FROM SERVICE

5.1 DISCHARGE/TERMINATION
An employee in the competitive service may be discharged at any time by the appointing authority for reasonable cause. Discharge shall be pursuant to these Personnel Rules, the Personnel Ordinance, and in accordance with law. Employees not in the competitive service of the City are employed at-will and can be terminated at any time with or without cause and without notice.

5.2 LAY OFF
Paragraph 1: Elimination of Position. Whenever, in the judgment of the City Council, it becomes necessary in the interest of economy or because the necessity for a position no longer exists, the City Council may abolish any position or employment in the competitive service, and the employee holding such position or employment may be laid-off without the right of appeal.

Paragraph 2: Lay Off Procedure. The order of lay off of employees shall be established by the Personnel Officer on the recommendation of the Department Director involved. The Department Director shall take into consideration the job performance and length of service of employees in preparing a recommended lay off list, provided that no regular or probationary employees shall be laid off from their position in any department while any temporary, seasonal, provisional, or part-time employees are serving in the same class within the department. Employees to be laid off shall be given at least fourteen (14) days prior notice.

5.3 RESIGNATION
An employee wishing to leave City employment in good standing shall file a written resignation with the appointing authority, stating the effective date and reasons for leaving, at least two (2) weeks before leaving the service. Such time limit may be waived by the appointing authority if the employee furnishes evidence that such notice would result in unreasonable hardship or loss of opportunity. A statement as to the resigned employee’s service performance and other pertinent information shall be forwarded to the Personnel Officer. Failure to give notice as required by this Rule may be cause for denying future employment by the City.

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26 5.4 JOB ABANDONMENT
An employee is deemed to have resigned if the employee is absent for five (5) consecutive business days without prior authorization and without notification during the period of absence. Employees have no right to appeal if deemed to have resigned as a result of job abandonment. Employees separated from employment for job abandonment will be reinstated with such charge removed from the employee’s record upon presentation of justification for absence such as severe accident, severe illness, false arrest, or mental or physical impairment which made it impossible not only to come to work, but also to communicate that inability to his/her supervisor.

5.5 RETIREMENT
Employees covered by the contract between the California Public Employee’s Retirement System (CalPERS) and the City of Lake Forest shall be eligible to retire based upon meeting CalPERS eligibility requirements.

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27 CHAPTER 6

COMPENSATION AND HOURS

6.1 CLASSIFICATION POLICY
Paragraph 1: Preparation of Plan. The Personnel Officer, or a person or agency employed for that purpose, shall ascertain, and record the duties and responsibilities of all classifications in the competitive service and, after consulting with the appointing authority and Department Directors, shall recommend a classification/compensation plan for such positions. The classification/compensation plan shall consist of classifications of positions in the competitive service defined by classification specifications, including the title. The Classification/compensation plan shall be so developed and maintained that all positions similar with respect to duties, responsibilities, authority, and character of work are included within the same classification; and that the same schedules of compensation may be made to apply with equity under like working conditions to all positions in the same classification.

Paragraph 2: Adoption, Amendment, and Revision of Plan. The classification/compensation plan shall be adopted and may be amended from time to time by resolution of the City Council. The Personnel Officer shall determine which, if any, amendments will be proposed to the City Council.

Amendments or revisions to the classification/compensation plan proposed by the Personnel Officer shall be publicly posted for at least seventy-two (72) hours prior to consideration by the City Council.

Paragraph 3: Allocation of Positions. Following the adoption of the classification/compensation plan, the Personnel Officer shall allocate every position in the competitive service to one of the classifications established by the Plan.

Paragraph 4: New Classification. When a new classification is created, before any position may be filled, the appointing authority shall notify the Personnel Officer, and except as otherwise provided by the Personnel Ordinance or these Personnel Rules, no person shall be appointed or employed to fill any such position until the classification/compensation plan has been amended to include such position.

Paragraph 5: Reclassification. When duties have changed so materially as to necessitate reclassification, such duties shall be allocated by the Personnel Officer to a more appropriate class.

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28 Reclassifications shall not be used for the purpose of avoiding restrictions concerning demotions and promotions. When a reclassification occurs, no person shall be appointed or employed to fill the reclassified position until the classification/compensation plan has been amended to include a position not already in the plan.

6.2 FULL-TIME SALARY ADMINISTRATION POLICIES
The following salary policies shall govern the administration of the compensation plan for all full-time classifications:

A. The minimum rate is normally the hiring rate for the grade. An employee may be assigned, upon appointment, to a rate other than the normal entering salary rate upon the recommendation of the Department Director, and with approval of the City Manager when it is decided that such action is in the best interest of the City.

B. The comprehensive wage and salary plan is based on a 40-hour work week for all full-time employees.

6.3 PART-TIME WAGE ADMINISTRATION POLICIES
The following salary policies shall govern the administration of the wage schedule for part-time classifications:

A. An employee shall be assigned, upon appointment, to an hourly wage rate upon the recommendation of the Department Director and with approval of the City Manager. The wage must be that as set forth in the wage schedule.

B. The wage is an hourly rate and represents the comprehensive rate.

C. The wage schedule shall be adopted by Resolution of the City Council.

D. Part-time employees shall be eligible for a step increase after working at least 500 hours, completing one (1) year of service, and receiving a “Meets Minimum Job Requirements” performance evaluation overall rating. If an employee works less than 500 hours after one (1) year of service, they will be eligible for the increase upon reaching 500 hours, or upon the completion of two (2) years of service, whichever comes first. The effective date of the increase shall be the employee’s anniversary date, or upon reaching the 500 hours. Part-time employees can be eligible for a double step increase for Item: 11
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29 outstanding performance upon the approval by the Department Director and City Manager.

E. Part-time employees promoted within one (1) month of their eligibility for a step increase will receive a double step increase upon promotion. Part-time employees promoted within three (3) months of their eligibility for a step increase are eligible for a double step increase upon promotion subject to approval by the Department Director and City Manager.

6.4 PERFORMANCE COMPENSATION PLAN (Does not apply to the City Manager or the City Attorney).

Paragraph 1: Purpose. The purpose of this Pay for Performance Plan is to establish a compensation plan and policy that will not only attract, retain, and motivate people with a high degree of commitment and excellent skills to the City for employment, but will compensate employees equitably for the value of the work they perform and the contributions their efforts make to achieving the City’s goals and long-term objectives. The Plan will recognize and reward employees for the results they achieve and the behaviors they demonstrate consistent with the City’s vision and values.

With exceptional results for the citizens and stakeholders in the City will come exceptional rewards for those who accomplish them.

Paragraph 2: Background. While the City appreciates and values long-term service from good employees and rewards such service tenure through other programs, the City recognizes that compensation programs and policies are among the most critical tools in setting a high-performance bar and focusing energy, effort, and commitment to meeting and exceeding performance standards. This Plan is established to institutionalize the concept that salary ranges present the opportunity to earn higher salary and are not a guarantee of annual salary increases. When merit increases are awarded on the basis of work results compared to performance targets equitably established and communicated, employees are empowered to be individually accountable — to influence the pay they receive by the level of their performance.

Paragraph 3: Policy. The Pay for Performance Plan shall apply to all full-time employees who receive an annual performance evaluation except for the City Manager and City Attorney. Compensation adjustments under this Plan will be considered in conjunction with the employee’s annual performance evaluation. When an employee receives their annual performance review, an employee rating shall be determined based on the Item: 11
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30 criteria outlined in the evaluation form. Only employees who are recommended by their Department Director and approved by the City Manager as rating “Meets Minimum Job Requirements” or higher shall be eligible for adjustments to base pay and lump sum performance incentives in accordance with this Plan. An employee’s eligibility for salary movement may be based on three types of increase policies:

A. Performance – based merit increase policy. To be eligible to receive a performance – based merit increase, an employee must receive a performance rating based on the criteria outlined in the evaluation form used in the annual performance review of all full-time employees performed each year after the completion of the fiscal year. Employees who are hired during the fiscal year will be eligible for a pro-rata share of the performance- based merit increase based on the date of their hire and their rating. The following reflects the pro-rata percentage of the increase that will be available to employees based on their hire date:

Month of Hire Pro-Rata Percentage
July 100%
August 92%
September 84%
October 75%
November 67%
December 59%
January 50%
February 42%
March 34%
April 25%
May 17%
June 9%
The following conditions are also part of the performance-based merit increase policy:
(1) The increase will be applied to salary if possible. However, the salary increase will be limited by the pay range maximum for each position. (2) Any amount of increase which cannot be accommodated within the pay range maximum will be paid in a lump-sum payment after the employee’s evaluation each year. However, employees are not eligible to receive a lump-sum performance incentive award unless they are at the maximum salary of their range.

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31 (3) All increases made under this policy, whether in the form of salary increases or lump-sum payments, must be according to law. (4) Lump-sum payments will not be included as compensation for purposes of disability benefits, vacation or holiday pay, or other pay related to City benefits to an employee.
(5) Performance based merit increases are discretionary, and subject to City Manager review and approval. The City Manager is also authorized to adjust and/or limit the percentage increases based upon City financial conditions and budgetary considerations.

B. Promotional increase policy. A promotional increase will be granted to an employee who is promoted to a position at least one grade higher than the employee’s previous class. The amount of the increase will be as determined by the City Manager but will be a minimum increase of five (5%) percent over the prior salary. The City Manager’s determination will be based on, but not limited to, the “size” of the promotion (one grade versus five grades), the “time” since the employee’s last increase, and an assessment of the employee’s “readiness” for full job performance in the new position.

C. Structural movement increase policy. This policy provides for review and adjustment of the salary structure (if necessary) at least every two years.

When the salary structure is adjusted, employees with salaries that fall below the new range minimums after any pay-for-performance increase will receive a structural increase to the minimum.

6.5 WORKING HOURS
Actual working hours will be determined on the basis of operational efficiency and the needs of the City. Supervisors will establish normal work schedules subject to approval of the Department Director or the City Manager. Any deviation from normal work schedules shall be approved by the Department Director and the Personnel Officer.

6.6 PAY PERIODS AND PAY DAYS
All officers and employees of the City of Lake Forest shall be paid once every two weeks. Compensation shall be made available on an every-other Friday basis. In the event that a payday falls on a holiday, all warrants or checks in payment of compensation shall be made available on the day preceding the holiday.

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32 6.7 PAYROLL DEDUCTIONS
The City can lawfully withhold amounts from an employee's wages only: (1) when required or empowered to do so by state or federal law, or (2) when a deduction is expressly authorized in writing by the employee to cover insurance premiums, benefit plan contributions or other deductions not amounting to a rebate on the employee's wages, or (3) when a deduction to cover health, welfare, or pension contributions is expressly authorized by a wage or collective bargaining agreement.

The following payroll deductions may be made from the salary of employees, where applicable:

Paragraph 1: Obligations to the City. The City, if deemed necessary by the City Manager, may deduct from the employee’s pay amounts equal to the obligations incurred through cash advances and damage to City property entrusted in the care of the employee, if said damage results from proven negligence on the part of the employee, when authorized by the employee.

Paragraph 2: Health and Life Insurance Benefits. The City will make deductions of those amounts authorized by the employee equal to the employee’s share of the health and life insurance benefits made available to the employee.

Paragraph 3: Income Tax -Medicare and Social Security. The City shall make deductions from the salary in the amount required by Federal and State law.

Paragraph 4: Public Employees’ Retirement System. The City shall deduct from the employee’s salary the amount required to be contributed to the Public Employees’ Retirement System (PERS) after considering Section 7.2 “Public Employees’ Retirement System.” Paragraph 5: Credit Union Deductions. The City shall deduct from the employee’s salary authorized deductions to the credit union and pay such amounts to the credit union.

Paragraph 6: Charitable Deductions. The City shall deduct charitable contributions periodically, when authorized by the employee.

Paragraph 7: Deferred Compensation. The City, upon
authorization by the employee, shall deduct eligible amounts as determined by the employee for contribution to the Deferred Compensation Program.

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33 Paragraph 8: Miscellaneous Deductions. The City, upon authorization by the employee, shall deduct amounts as determined by the employee.

Paragraph 9: Court Ordered Garnishment. The City shall deduct an amount from an employee’s salary when so ordered by a court of competent jurisdiction.

6.8 COMPENSATION FOR OVERTIME
Paragraph 1: General Overtime Provisions. Subject to approval of the City Manager and to the following provisions, an authorized supervisor may prescribe reasonable periods of overtime work to meet the operational needs of the department. Except as otherwise provided herein, overtime shall be paid at one and one-half times the hourly equivalent of the employee’s salary rate, based on the number of overtime hours actually worked.

A. Overtime is defined as work required by an authorized supervisor on a form approved by the Personnel Officer in excess of forty (40) hours in a work week.

B. In the event a bona fide emergency arises that dictates the need for immediate overtime and the employee’s supervisor is not available for authorization, the employee shall seek approval from a management employee prior to working the overtime and on the next working day shall prepare a memorandum to the responsible supervisor outlining the same.

C. Time off taken for purposes of sick leave, vacation, compensatory time, jury duty, holiday, bereavement, and other leave shall not serve as time worked when computing the forty (40) hours in a work week.

D. Compensatory-time In Lieu of Compensation. An employee is entitled to elect to receive compensatory-time in lieu of compensation for overtime. The maximum hours of compensatory time that an employee shall receive in lieu of compensation is forty (40) hours.

Once an employee has reached the maximum level of compensatory- time the City shall directly compensate the employee, until the employee’s balance of compensatory-time falls below the forty (40) hour maximum level.

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34 (1) Part-time employees are not entitled to receive compensatory time in lieu of overtime pay.

Paragraph 2: Personnel Not Entitled to Overtime. For the purpose of this section all exempt employees as defined by the Fair Labor Standards Act (FLSA) are not entitled to overtime. However, these personnel may be granted compensation for work beyond the normal work week at the sole discretion of the City Manager.

Paragraph 3: Court Time. Employees, other than those
covered by Paragraph 2 above, who are required to appear in court during their off-duty hours in connection with City business shall receive overtime compensation at one and one-half times the number of hours they spend in court.

6.9 PAY FOR SERVING IN HIGHER JOB CLASSIFICATION
Paragraph 1: Prior Approval for Serving in Higher Job
Classification. Prior to an employee serving in a higher job classification for more than ten (10) consecutive business days, the Department Director must submit a memo to the City Manager requesting authorization. The memo must document the reason for need, estimated duration of service, and specific job responsibilities to be covered. The job responsibilities to be covered shall be approved by the Department Director and the Personnel Officer.

Paragraph 2: Pay for Serving in Higher Job Classification. An employee who is required, on the basis of acting appointment, to serve in a class with a higher salary range to that of the class in which the employee is normally assigned, shall receive the greater of the minimum salary rate of the higher salary range or a five percent (5%) increase from the employee’s current salary rate on the eleventh business day of serving. This increase is conditional provided the employee performs all of the duties and assumes all the responsibilities of the higher class, and only after the employee has served more than ten (10) consecutive business days in the higher classification. The ten (10) consecutive days are exclusive of time off. If each of these conditions is met, the increase in salary shall be retroactive to the eleventh business day of such a qualifying service.

This section only entitles an employee to the salary of the higher class and not the benefits of the higher class. Compensation under this section shall not be permitted for any position which is subject to Item: 11
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35 City Council appointment unless specifically authorized by the City Council.

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36 CHAPTER 7

EMPLOYEE BENEFITS

7.1 HEALTH INSURANCE/CASH IN LIEU AND LIFE INSURANCE
Paragraph 1: Health Insurance. Full-time employees and their dependents will have medical, dental, and vision insurance made available. The City retains the right to make health insurance benefits available to part-time employees in specific situations, at the part-time employee’s own cost. The City shall pay for medical, dental, and vision insurance for full-time employees and their dependents in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules. The City will pay the cost of the dental and vision plans offered by the City to full-time employees.

Additionally, employees may select to be covered by any one of the medical plans offered by the City.

Paragraph 2: Healthcare Insurance Benefits Contribution.

Eligible full-time employees will receive CalPERS or other comparable program medical insurance, that includes comparable costs, services, and providers, as determined by the City. Effective January 1, 2025, the contribution to employee premiums will be 90% of the highest HMO plan offered.

Paragraph 3: Cash In Lieu. Full-time employees that have qualifying group health insurance through a spouse, domestic partner, parent, or another source, have the option to receive cash in lieu of City-sponsored health benefits. Employees who elect the Cash in Lieu option will receive $450 per month. As a condition of receiving such benefit, the employee must provide evidence, satisfactory to the City, that they have enrolled in medical insurance coverage comparable to coverage available through the City program which meets the definition of “minimum essential coverage” (as defined by the Affordable Care Act). Employees enrolled in individual coverage, such as Medicare, Medi-Cal, and Covered California, are not eligible to receive the Cash In Lieu option. Once elected, generally employees cannot change or cancel enrollment during the plan year unless there is a qualifying change in status.

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37 Cash In Lieu is treated as taxable income and is reported on the employee’s W-2 statement for the tax year the employee receives the payment. Cash In Lieu is not considered compensation for retirement purposes. Employees on unpaid leave will not receive cash in lieu.

Paragraph 3: Life Insurance Benefits. Group term life
insurance will also be made available to full-time employees. The amount of life insurance made available will be in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules.

7.2 PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (Does not apply to part-time except as set forth below or required by law).

New Members
“New member” employees will be required to contribute at least fifty percent (50%) of the total annual normal cost rate or the current contribution rate of similarly situated employees, whichever is greater (equal sharing of normal cost) as dictated per PEPRA.

Employee contributions will be deducted from employees’ base salary on a pre-tax basis and paid to PERS.

Classic Members
“Classic member” employees will be required to contribute the full seven percent (7%) employee contribution to PERS (employee normal contribution). Employee contributions will be deducted from employees’ base salary on a pre-tax basis and paid to PERS.

Part-Time Employees
Part-time employees who are eligible to participate in PERS will be required to contribute based upon their membership status as stated above. Employee contributions will be deducted from employees’ base salary on a pre-tax basis.

7.3 PHYSICAL EXAMINATION ALLOWANCE
Full-time employees are entitled to an annual allowance on a reimbursement basis for a physical examination by a licensed physician of the employee’s choice. Department Directors may receive a maximum allowance of Five Hundred Dollars ($500.00) each fiscal year. All other eligible employees may receive a maximum allowance of Three Hundred Dollars ($300.00) each fiscal year. This allowance can only be used to pay that portion of the cost of the physical, which is not covered by the employee’s insurance plan, or for preventive medical tests ordered by a physician as part of the physical exam such as Item: 11
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38 pap smear, cholesterol testing, mammogram, colonoscopy, diabetes testing, prostate cancer screening, and bone density testing.

7.4 CELL PHONE ALLOWANCE
Some employees may receive a cell phone allowance to reimburse them for business use of their personal cell phones when it is determined that an employee may need to be available by telephone during non-business hours or when an employee is away from City facilities. The City will pay a cell phone allowance in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules.

7.5 WORKERS’ COMPENSATION
In the event that an employee incurs a job-related accident or injury, the employee may supplement his or her workers’ compensation payments with a fractional amount of earned sick leave or vacation to bring employee’s total compensation up to the employee’s maximum wage.

7.6 DEFERRED COMPENSATION
City employees, including part-time, provisional, temporary, and seasonal employees, are eligible for a Deferred Compensation Program. All contributions will be made by the employee.

7.7 TRAINING OF EMPLOYEES (Paragraph 2 does not apply to part-time, seasonal, provisional, or temporary employees).

Paragraph 1: Purpose of Training and Policy. It is the policy of the City to develop maximum efficiency in the performance of official duties by City employees by providing for the training of employees in the performance of their official duties, and by assisting them in fulfillment of their duties and responsibilities as well-informed citizens of the community.

A. The Personnel Officer shall monitor training programs, provide support and assistance to Department Directors in the administration of internal training programs, and submit recommendations to the City Manager.

B. The development of a continuous program of post-entry training as a part of the normal operation of City administration shall be encouraged. All other things being equal, priority consideration shall be given to training opportunities sponsored by and conducted by the City.

Paragraph 2: Tuition Reimbursement. The City will provide to employees a maximum of Fifteen Hundred Dollars ($1,500) per fiscal year Item: 11
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39 per employee for tuition reimbursement for courses which relate to their job assignments, or when they are pursuing a degree in a major with potential value to the City. Tuition reimbursement may only be applied to the cost of tuition; incidental costs including those for books, parking, or other fees are not reimbursable. The City’s program is intended to qualify as an Educational Assistance Program under federal and state tax laws. The completion date of the class shall be used in determining the fiscal year in which the benefit shall apply.

A. To be eligible, an employee must:
(1) have full-time status for one year;
(2) receive no other duplicate benefits under any student aid programs;
(3) receive prior written approval by the employee’s supervisor on a form approved by the City Manager before registering for the class;
(4) forward to the Personnel Officer proof of payment of tuition for which City reimbursement is being requested; provide the Personnel Officer with evidence of satisfactory completion of a course (a “C” grade or better or a “pass” in a pass/fail grading system) within thirty (30) days of the end of the course. If good cause is demonstrated, the City Manager may approve payment of the course following registration and; (5) remain in City employment for at least one year after course completion.

B. The City may withhold from an employee’s paycheck sums equal to any amounts which may have been advanced or reimbursed if an employee does not provide evidence of satisfactory completion of a course within thirty (30) days; or, an employee terminates within one year after course completion.

7.8 EXPENSE ALLOWANCES
Paragraph 1: Mileage
Reimbursement.

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40 A. Expense claims for use of private automobiles must be approved by the Department Directors or City Manager. Such use will be reimbursed at the official Internal Revenue Service (IRS) mileage rate that is in effect at the time of the travel. The City Manager may authorize advance payment of estimated expenses to employees, i.e., gasoline or mileage. The employee may elect to be reimbursed by actual mileage in lieu of the car allowance if an employee expects to exceed his/her allowance.

B. Use of private vehicles for business trips out of the metropolitan area may be approved by the City Manager when use of commercial transportation is not practical or for other acceptable justifications.

Paragraph 2: Car Allowance. (Does not apply to part-time, seasonal, provisional, or temporary employees). A car allowance instead of mileage for normal day-to-day operation may be made available in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules. The car allowance is not applicable to employees who are assigned a City vehicle or do not possess or use a private vehicle in the scope of their employment.

Paragraph 3: Travel Expenses. When air, rail, or public transportation is used, expenses for local transportation such as rideshare, taxicab or automobile rental will be allowed when necessary for the conduct of City business.

A. Expenses for lodging will be reimbursed in accordance with the City’s Expense Reimbursement Policy.

B. Expenses for meals will be reimbursed in accordance with the City’s Expense Reimbursement Policy.

7.9 LONG-TERM DISABILITY
Full-time employees are entitled to benefits under a Long-Term Disability Plan provided by the City. Employees who are eligible for the use of sick leave in accordance with Personnel Rule Section 8.4, Sub-paragraph 1.A(1) are entitled to benefits according to the plan waiting period.

7.10 SHORT-TERM DISABILITY
Full-time employees are entitled to benefits under a Short-Term Disability Plan provided by the City. Employees who are eligible for the use of sick leave in accordance with Item: 11
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41 Personnel Rule Section 8.4, Sub-paragraph 1.A(1) are entitled to benefits according to the plan waiting period.

7.11 CONFERENCES, SEMINARS, AND MEMBERSHIPS
Employee attendance at conferences and seminars may be authorized in accordance with the City’s Travel Policy.

7.12 INSURANCE/BENEFIT PLANS
The City retains the right to select the vendor(s) for the various insurance plans and to amend the benefits provided by these various plans. Nothing shall limit the City’s right to make any changes or guarantee the continuation of the benefits as outlined in these policies.

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42 CHAPTER 8
LEAVE

8.1 VACATION LEAVE
Paragraph 1: Full-Time Employees. Employees working full-time for the City accrue vacation hourshours for each pay period in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules.according to the following schedule:

After completion of the following years of continuous service employees begin to accrue this number of hours annually.

Years in Service Annual Hours
0-4 80
5-9 120
10 128
11 136
12 144
13 152
14 or greater 160
Some employees are entitled to earn an additional forty (40) hours of vacation each year.

This additional annual vacation accrual shall be provided to employees in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules.

Employees shall accrue vacation beginning the first year of employment. Employees are not allowed to accumulate more than two hundred-eighty (280) hours of vacation. Once an employee accumulates two hundred-eighty (280) hours of vacation, the employee shall stop accruing vacation. Accrual shall not begin again until the vacation leave is less than two hundred-eighty (280) hours.

Paragraph 2: Sell Back of Accumulated Vacation. The City allows for sell back of accumulated vacation based upon the approved annual operating budget. The City Manager will have the final authority to review, modify, and approve all requests. A qualified employee may request a sell back of accumulated vacation during two months of the year, June, and December. In order to qualify for the sell back, an employee must:

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43 A. Have at least eighty (80) hours of accumulated vacation remaining after the sell back is completed, and
B. Have taken at least forty (40) hours of vacation/management leave, of which at least twenty-six (26) vacation/management leave hours must be consecutive, within the last twelve (12) months preceding the sell back.

If the employee is qualified and desires the sell back, the employee must follow any additional procedures established by the Personnel Officer.

8.2 MANAGEMENT LEAVE
Management leave may be made available in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules.

The accrual of this leave is in a lump-sum in January of each year. New employees, who are eligible for this leave, shall accrue on the first of the month following the date of employment. However, the amount accrued in the first year of employment shall be on a prorated basis. Management leave received pursuant to this Section shall be either taken as time off with pay or will be paid off in a pay period in January.

8.3 HOLIDAYS
Employees shall have the following holidays as time off with pay:

New Year’s Day (January 1)
Martin Luther King Day (3rd Monday in January)
President’s Birthday (3rd Monday in February)
Memorial Day (last Monday in May)
Independence Day (July 4)
Labor Day (1st Monday in September)
Veteran’s Day (November 11)
Thanksgiving Day (4th Thursday in November)
Friday after Thanksgiving
Christmas Day (December 25)
In the event that aIf a holiday occurs on aan employee’s regular day-off and is not observed on a preceding or following day by the City, each employee who is employed prior to the holiday shall receive eight (8) hours of floating holiday hours based on work schedule.. The floating holiday will be accrued according to the holiday schedule.

Floating holiday hours may be used hour by hour or in the full eight (8) hour increment.

Floating holiday hours must be used within the same calendar year they are received and will not carry over to future years.

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44 8.4 SICK LEAVE
Paragraph 1: Sick Leave Generally. The granting of sick leave shall be determined by the following rules:

A. Accrual of Sick Leave: Sick leave, in the forms described below, may be made available in accordance with the benefits matrix contained in Exhibit A to these Personnel Rules:
(1) Full-time employees shall accrue sick leave with pay at a rate of eight (8) hours per month. Any such leave accrued but unused in any year shall be credited to the following year. At separation, the City will compensate the employee leaving City service for one-half of accumulated sick leave, for separation reasons other than discharge/termination or job abandonment as defined in Chapter 5. (2) In accordance with the Healthy Workplaces, Healthy Families Act of 2014 (“HWHFA”), part-time employees who, on or after July 1, 2015, work in California for 30 or more days within a year from the beginning of employment are entitled to paid sick leave. Part-time employees shall accrue sick leave with pay at a rate of one hour per every 30 hours worked, beginning at the commencement of employment. The accrual of paid sick days cannot exceed 80 hours or 10 days. Accrued and unused paid sick days shall carry over year to year based on the original hire date. A part-time employee shall be entitled to use accrued paid sick leave beginning on the 90th day of employment, after which the employee may use paid sick leave as it accrues. At separation the City will compensate part-time employee leaving City service for one-half of accumulated sick leave, for separation reasons other than discharge/termination or job as defined in Chapter 5.

B. Permitted Uses of Sick Leave: An employee eligible for sick leave with pay shall be granted such leave for the following reasons:
(1) Personal illness or physical incapacity.
(2) Enforced quarantine of the employee in accordance with community health regulations.
(3) Doctor and dental appointments.
(4) Bereavement and Reproductive Loss.

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45 (5) For an employee or their family member who is an individual against whom a qualifying act of violence is committed. A qualifying act of violence is defined as any of the following, regardless of whether it results in an arrest, prosecution, or convection:
(a) Domestic violence
(b) Sexual assault
(c) Stalking
(d) An act, conduct or pattern of conduct that includes any of the following: (1) an individual causing bodily injury or death to another individual; (20 an individual
exhibiting, drawing, brandishing, or using a firearm, or other dangerous weapon, with respect to another
individual; or (3) an individual using or making a
threat, whether actual or perceived, to use, force against another individual to cause physical injury or death.
(6) Absence from duty because the employee’s presence is needed to attend to diagnosis, care, or treatment of an existing health condition of, or preventative care for, an employee’s family member. “Family member” means any of the following:
(a) A child, meaning a biological, adopted, foster child, stepchild, child of a domestic partner, legal ward, or a child to whom the employee stands in loco parentis.

This definition of child is applicable regardless of age or dependency status.
(b) A biological, adoptive, foster parent, stepparent, or legal guardian of an employee or the employee’s
spouse or registered domestic partner, or a person who
stood in loco parentis when the employee was a minor
child.
(c) A designated person is defined as “any individual
related by blood or whose association with the
employee is the equivalent of a family relationship.
(d) A spouse,
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46 (e) A registered domestic partner.
(f) A grandparent.
(g) A grandchild.
(h) A sibling.

Full-time employees may use accrued sick leave up to the amount earned during six months of employment each calendar year (48 hours) for purposes other than their own illness or medical/dental care. Part-time employees may use accrued sick leave up to 48 hours each calendar year.

C. Conditions on Use of Sick Leave: Sick leave is not a right which an employee may use at his or her discretion. Sick leave is subject to the following:
(1) Observed holidays occurring during the sick leave will not be counted as sick leave.
(2) An employee must call no later than thirty (30) minutes after the regular starting time of their assigned shift and report to their supervisor. An employee has an obligation to keep their supervisor informed regarding their condition and whereabouts during working hours.
(3) Except in extraordinary circumstances, failure to call before the thirty (30) minute time limit is a basis for denying use of sick leave. (4) An employee who misses work shall, upon return to work, ensure the sick leave request is input into the City’s leave system. (5) An employee who misses five days or more of work shall, upon return to work, furnish a certificate issued by a medical provider indicating the employee was on medical leave.
(6) In cases of suspected abuse of sick leave, a supervisor may require a doctor’s statement for any illness. Failure to validate an absence with a doctor’s statement may be grounds for denying use of sick leave. Continued abuse will be cause for discipline.

Paragraph 2: Sick Leave Sell Back. The City allows for sell back of accumulated sick leave based upon the approved annual operating budget.

The City Manager will have the final authority to review, modify, and Item: 11
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47 approve all requests. A qualified employee may request a sell back of accumulated sick leave in December. In order to qualify for the sell back, an employee must:

A. Employees who have accumulated more than 360 hours of sick leave may sell all or part of those hours in excess of 360 back to the City at the rate of one hour of pay for each two hours sick leave. If the employee is qualified and desires the sell back, the employee must follow any additional procedures established by the Personnel Officer.

Paragraph 3: Sick Leave Donation Policy.

A. Purpose: The purpose of this Policy is to establish a program and procedures for employees to donate a portion of their accumulated sick leave time to fellow employees who have exhausted their paid leave entitlements and (1) who are suffering from a catastrophic illness or injury or (2) whose absence from duty is caused by the need to attend to the catastrophic illness or injury of their child, spouse, parent, or domestic partner.

B. Background: The City’s employees accrue paid sick leave and other various forms of paid leave for their use when the employees are absent from work.

There have been occasions when a City employee, due to a serious health condition, has exhausted all forms of paid time off. Such employees have been forced to go without compensation for a length of time. This Policy is designed to address such circumstances during that medical and financial emergency.

C. Policy: This Policy allows City employees to provide assistance to a fellow employee who is facing a crisis due to their own or a family member’s catastrophic illness or injury. A catastrophic illness or injury is one that is expected to incapacitate a person for an extended period of time and that creates a financial hardship because the employee has exhausted all of his or her accumulated leave. Participation by donors or recipients in the Sick Leave Donation Program is entirely voluntary.

D. Catastrophic Leave Donation Banks: The Sick Leave Donation Program will allow an employee, who is absent from work due to his or her own serious health condition or due to the need to attend to the serious health condition of their child, spouse, parent, or domestic partner to request that a Catastrophic Leave Donation Bank be established on his or her behalf. A Catastrophic Leave Donation Bank shall not be established unless the City Manager or the City Manager’s designee has approved the employee’s Item: 11
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48 request. Leave donations will be credited to a particular recipient’s Catastrophic Leave Donation Bank and will be for use by that designated recipient only.
(1) Eligibility of Employee for Catastrophic Leave Donation Bank. To be eligible to receive Catastrophic Leave Donation Bank donations, an employee must meet all the following conditions:
(a) Must be eligible for the accrual of sick leave in
accordance with Personnel
Rule Section 8.4; and,
(b) Must have been employed by the City in a regular
position for at least one year or if good cause can be
demonstrated, the City Manager can waive the one
year requirement; and,
(c) Must submit a confidential statement from his or her treating physician which indicates that the employee’s
absence is due to the employee’s own “serious health
condition” or is due to the need to attend to the
“serious health condition” of their child, spouse, or
parent, or domestic partner as defined according to state and federal laws. The statement must also estimate the duration of the employee’s absence from work; and,
(d) Must have applied for short-term disability insurance or for Workers’ Compensation benefits, if eligible, and
have authorized the City to integrate any such awarded
benefits with available leave balances; and,
(e) Must have exhausted all earned leave balances
(including sick, vacation, management leave, and
compensatory time). However, the City Manager may
approve the solicitation and acceptance of sick leave
donations prior to all balances being exhausted when
the physician’s statement and existing leave balances
indicate that all such balances will be exhausted within the next two pay periods.
(2) Catastrophic Leave Donation Bank Guidelines. Leave donations will be credited to a recipient’s Catastrophic Leave Donation Bank on an hour-for-hour basis, regardless of the hourly pay rate of any Item: 11
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49 particular employee. While using leave from the recipient’s Catastrophic Leave Donation Bank, the recipient will be treated as though he or she was merely using the recipient’s own sick leave.

Thus, the recipient will accrue additional annual vacation or sick leave, as usual, during the use of hours from the Catastrophic Leave Donation Bank. The maximum amount of sick leave which may be donated, in total, by City employees to a particular Catastrophic Leave Donation Bank is a total of four hundred eighty (480) hours.

Any hours of donated sick leave remaining in the Catastrophic Leave Donation Bank at the time the Bank is abolished will be forfeited.

The donated hours used by the recipient are taxable to him or her in accordance with Internal Revenue Service regulations and are subject to withholdings as required by law.

E. Leave Donations: Donations of sick leave are subject to the following requirements:
(1) Full-Time Employees Only. Only full-time employees, who are eligible for the accrual of sick leave in accordance with Personnel Rule Section 8.4, Sub-paragraph 1.A, may make sick leave donations to a Catastrophic Leave Donation Bank.
(2) Type of Donations. Employees may donate from his or her accumulated sick leave balance only. Transitional sick leave balances are not available for donation.
(3) Minimum Donations. Employees wanting to donate will be notified of the hours needed per pay period. Employees may donate a minimum of one hour from his or her accumulated sick leave balance. No donation from an employee will be permitted that would result in the donor’s accumulated sick leave balance, immediately after the donation, being below eighty (80) hours of accumulated sick leave.
(4) Whole Hour Donations. Leave donations must be in whole hours. No fractions of hours may be donated.
(5) Donation's Impact on Sick Leave Sell-Back. Sick leave donations may affect the donor’s ability to annually sell sick leave back to the City.

F. Responsibilities Under the Policy: The development and use of a Catastrophic Leave Donation Bank carries with it a shared responsibility Item: 11
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50 between City's management and individual employees desiring to participate in the program. The respective responsibilities are set forth below:
(1) The Requesting Employee: The requesting employee will prepare and submit to the Personnel Office a “Request to Establish a Catastrophic Leave Donation Bank” form. Additionally, the requesting employee should submit a “Certification of Physician or Practitioner” form to the Personnel Office in a sealed envelope labeled “Confidential – Request to Establish a Catastrophic Leave Donation Bank.” If the requesting employee is unable to make the request on their own behalf, the employee’s Department Director may submit a request on the employee’s behalf.
(2) The Program Administrator: The City Manager, or the City Manager’s designee, will serve as the administrator of the Sick Leave Donation Program. The Administrator will receive the confidential statement from the requestor’s physician in a manner consistent with federal and state laws. The Administrator will approve or deny the establishment of a requested Catastrophic Leave Donation Bank. If the request is approved, the Bank shall be established, and the Administrator will publicize the request with the statement approved by the requestor. The Administrator shall approve or deny each offered donation, if any, to the Catastrophic Leave Donation Bank in accordance with the requirements of this Policy. The Administrator shall determine when the Catastrophic Leave Donation Bank shall be abolished.
(3) The Donating Employee: A donating employee will prepare and submit to the Personnel Office a “Request to Donate to Catastrophic Leave Donation Bank” form.
(4) The Finance Department: The Finance Department will make the appropriate payroll and leave balance adjustments for both the recipient and any donors. The Finance Department will coordinate the usage of hours from the Catastrophic Leave Donation Bank and the integration of any other benefits therewith, if applicable. Any hours remaining in the Catastrophic Leave Donation Bank at the time it is abolished will be forfeited.

G. Forms: The forms utilized in the Sick Leave Donation Program are attached as follows:
(1) Request to Establish a Catastrophic Leave Donation Bank Item: 11
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51 (2) Request to Donate to Catastrophic Leave Donation Bank The Sick Leave Donation Program forms are available from the intranet or Human Resources.

8.5 FAMILY AND MEDICAL LEAVE POLICY
Family and Medical Leave shall be provided in accordance with state and federal law and the Lake Forest Family and Medical Leave Policy.

8.6 BEREAVEMENT LEAVE
Full-time employees are eligible for a maximum of three (3) days per calendar year paid bereavement leave in the event of the death of a member of the employee’s immediate family. Should additional time be required due to travel, an additional two (2) days may be approved by the City Manager.

For the purpose of this Section, immediate family is limited to a parent, stepparent, spouse, domestic partner, child, stepchild, brother, sister, mother-in-law, father-in-law, grandfather, grandmother, grandchild, son-in-law, daughter-in-law, aunt, or uncle of the employee, regardless of residence.

An employee is eligible for bereavement leave once they have been employed for at least 30 days prior to the commencement of leave. The employee can use bereavement leave for each qualifying occurrence, but full-time employees are only eligible for three (3) days per calendar year paid bereavement leave. Employees may use accrued leave for an additional bereavement leave beyond the three days.

The five days of bereavement leave do not need to be taken consecutively; and can be intermittent. The employee must complete the bereavement leave within three months of the family member’s date of death. Part-time employees are not eligible for City paid bereavement leave.

In accordance with state law, employees are eligible for unpaid leave of up to five (5) working days in the event of the death of an employee’s family member (spouse, child, registered domestic partner, parent, grandparent, grandchild, sibling, and parents-in-law).

The City will provide unpaid leave in accordance with state law, which will run concurrently with any leave entitlement under City policy. To be eligible, an employee must have been employed for at least 30 days before taking leave. For any leave permitted under state law which is beyond City paid leave, employee may use sick leave, compensatory time off, or vacation time for bereavement leave. This leave must be used within three months of the death of a family member.

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52 8.7 REPRODUCTIVE LOSS LEAVE
Eligible employees may take leave for up to five (5) days of unpaid leave when they suffer a reproduction loss event. A “reproduction loss event” is defined as the day or the final day for a multiple day event, of one of the following:
(1) Failed adoption
(2) Failed surrogacy
(3) Miscarriage
(4) Stillbirth
(5) Unsuccessful assisted reproduction
The employee will be eligible to take reproductive loss leave if they have been employed by the City for at least thirty (30) days prior to the commencement of their leave and have experienced a reproductive loss event. Employees may use vacation and sick leave that is otherwise available to employee.

The employee is not required to take all five (5) days of reproductive loss leave consecutively; employees are required to complete reproductive loss leave within three (3) months of the date of their reproductive loss event.

If an employee experiences more than one reproductive loss event within a 12-month period, the City is only required to grant the employee a maximum of 20 days of reproductive loss leave within a 12-month period.

8.8 MILITARY LEAVE
Military leave shall be granted in accordance with state and federal law, including the California Military and Veterans Code and the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA) and the City of Lake Forest Military Leave Policy. All employees entitled to military leave shall give the appointing authority an opportunity within the limits of military regulations to determine when such leave shall be taken.

8.9 LEAVE OF ABSENCE WITHOUT PAY
A. Department Directors may grant employees leave of absence without pay for not more than five (5) business days. Such leave shall be reported to the Personnel Officer.

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53 B. The City Manager may grant employees leave of absence without pay or seniority, not to exceed three (3) months. After three (3) months, the leave of absence may be extended, if authorized by the City Council. No such leave shall be granted except upon written request of the employee, setting forth the reason for the request, and such approval shall be made in writing.

Upon expiration of a regularly approved leave or within a reasonable period of time after notice to return to duty, the employee shall be reinstated in the position held at the time leave was granted. Failure on the part of an employee to return to duty within five business days after notice to return shall be considered an absence without leave and be cause for immediate termination, and such employee automatically waives all rights under the Personnel Ordinance and these Personnel Rules. Deposit in the United States mail of a first-class letter, postage paid, addressed to the employee’s last known place of residence, shall be reasonable notice.

C. Employees placed on an unpaid status will not accrue sick or vacation leave.

An employee will be eligible for an unpaid status after exhausting all accrued paid vacation, management leave, compensatory leave, and sick leave balances.

8.10 SCHOOL ACTIVITY LEAVE
Employees are entitled to up to 40 hours of unpaid leave per year to attend or otherwise be involved with their child’s school or day care facility, upon reasonable advance notice.

This includes:
(a) To find, enroll or reenroll his or her child in a school or with a licensed childcare provider, or to participate in activities of the school or childcare provider, limited to 8 hours per month; or
(b) To address a school emergency or childcare provider emergency (including a situation where a child cannot stay at school or with a childcare provider due to behavioral or discipline problems); or
(c) To appear at their child’s school after the child has been suspended.

If possible, the employee should give reasonable written notice to his/her supervisor of his/her intent to do so. The written notice must include the date and time of the visit, as well as the child whose school the employee will be visiting. The City may deny the request if it will result in undue disruption to City operations.

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54 The employee may take off up to a maximum of 40 hours per school year, but not more than 8 hours in one month, per child. The employee may utilize existing vacation, compensatory time, or management leave, if applicable, for purposes of this planned absence.

The employee’s supervisor may require the employee to provide written documentation from the school as proof of these visits.

8.11 JURY DUTY LEAVE
All employees required to serve as a juror shall be compensated for the difference between their normal wage and the compensation for jury duty, less travel pay, during the period of such service.

8.12 ADMINISTRATION OF LEAVE
Employees shall attend their work location in accordance with these Personnel Rules regarding hours of work, holidays, and leaves. All departments shall keep attendance records of employees which shall be reported to the Personnel Officer when and in the manner the Personnel Officer specifies. Failure on the part of an employee to return to duty within five business days after notice to return shall be considered an absence without leave and be cause for immediate termination, and such employee automatically waives all rights under the Personnel Ordinance and these Personnel Rules. Deposit in the United States mail of a first-class letter, postage paid, addressed to the employee’s last known place of residence, shall be reasonable notice.

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55 CHAPTER 9

MISCELLANEOUS

9.1 NON-DISCRIMINATION POLICY
No employee shall be promoted, demoted, terminated, or in any way favored or discriminated against because of political opinions or affiliations, genetic characteristics or information, race, color, national origin, ancestry, religion, creed, sex, gender identity, gender expression, gender (including pregnancy, childbirth, breastfeeding or related medical conditions), physical or mental disability, medical condition, marital status, military or veteran status, sexual orientation, age (40 or over), reproductive health decision making, because of the exercise of his/her rights under the Meyers-Milias-Brown Act, or any basis protected by applicable federal, state, or local law.

9.2 POLITICAL ACTIVITY
The political activities of City employees shall conform to the pertinent provision of the Ethics in Government Act of 1990; Section 89500 et seq. of Title 9, Chapter 9.5 of the Government Code. Also, employees shall conform to the limits on the expenditure of City funds for political activities in accordance with Section 54964 of Title 5, Chapter 9.5 of the Government Code.

9.3 POLITICAL ACTIVITIES OF PUBLIC EMPLOYEES
Employees may not solicit political funds or contributions from other employees during working hours or on City property, nor may employees participate in political activities while in any uniform which would represent the City, while on City property or during working hours. Employees are prohibited from soliciting political contributions from other City employees or applicants on an employment list unless the solicitation is made as part of a request to a significant segment of the public. Also, candidates for City office may not use or threaten to use political authority or influence over City employees and City employees will not have any adverse job actions taken as a result of failing to contribute to a political campaign or engage in political activities. The purpose of these restrictions is clearly to keep the City employee’s job free from political influence.

9.4 RIGHT TO CONTRACT FOR SPECIAL SERVICES
The City Manager shall consider and make recommendations to the City Council regarding the extent the City should contract for the performance of technical services in connection with the establishment or operation of the personnel system. The City Council may contract with any qualified entity to perform any or all of the responsibilities and duties imposed by the Personnel Ordinance, including, but not limited to the following:

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56 A. The preparation of Personnel Rules and its subsequent revisions and amendments.

B. The preparation of a position Classification/Compensation Plan and its subsequent revisions and amendments.

C. The preparation, conduct, and grading of competitive tests.

D. The conduct of employee training programs.

E. Special and technical services of advisory or informational character on matters relating to personnel administration.

9.5 SEVERABILITY
If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or portion of these Personnel Rules is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of these Personnel Rules.

9.6 CONFIDENTIAL POSITIONS
As provided for in Government Code Section 3507.5 (the Meyers-Milias-Brown Act), the City has designated the following positions as confidential: City Manager and Department Directors, and any other employees who have access to confidential employee relations information or who have responsibilities within the employee relations function. The City Council hereby authorizes the City Manager to make further designations of confidential positions by preparing a memorandum stating the same. A copy of this memorandum shall be sent to those employees impacted by such designation.

9.7 ADDITIONAL POLICIES
In addition to the rules and policies set forth in these Personnel Rules, the following additional rules and policies are on file with Human Resources:

Paragraph 1: Family and Medical Leave Policy.

Paragraph 2: Disability Discrimination Policy.

Paragraph 3: Harassment, Discrimination, and Retaliation Policy.

Paragraph 4: Drug and Alcohol-Free Workplace Policy.

Paragraph 5: Conflict of Interest Code.

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57 Paragraph 6: Computer and Telecommunications Equipment Use Policy.

Paragraph 7: Electronic Communication Usage and Retention Policy.

Paragraph 8: Workplace Violence Prevention Plan.

Paragraph 9: Military Leave Policy.

9.8 DEFINITION OF TERMS
ALLOCATION: The assignment of a single position to its proper class in accordance with the duties performed and the authority and responsibilities exercised.

APPOINTING AUTHORITY: The City Council shall appoint the City Manager and City Attorney. The City Manager shall appoint all other positions within the City administration which are exempt from the “competitive service.” AT-WILL: An employee who can be terminated at any time with or without cause and without notice.

CLASS: All positions sufficiently similar in duties, authority, and responsibility to permit grouping under a common title in the application with equity of common standards of selection, transfer, promotion, and salary.

COMPARABLE CLASS: Refers to jobs in classes which require equal skill, effort, and responsibility, and that are performed under similar working conditions.

COMPETITIVE SERVICE: All positions of employment in the service of the City except those specifically excluded by the Lake Forest Municipal Code and these Personnel Rules.

DAYS: Means calendar days, unless otherwise stated.

DEMOTION: The movement of an employee from one class to another class having a lower maximum rate of pay.

DOMESTIC PARTNER: Individuals registered as domestic partners with the Secretary of State of California pursuant to the California Family Code.

ELIGIBLE: A person whose name is on an employment list.

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58 EMPLOYMENT LIST:

Open-Employment List: A list of names of persons who have qualified for appointment to a class in the competitive service.

Promotional-Employment List: A list of names of persons who have qualified for promotion to a class in the competitive service.

Reemployment List: A list of names of probationary and regular employees who have been laid off or demoted in lieu of lay off.

EXAMINATION:

Open Competitive Examination: An examination for a particular class that is open to all persons meeting the qualifications for the class.

Promotional Examination: An examination for a particular class which is open only to employees meeting the qualifications for the class who, with no subsequent break in City service except for approved leave of absence, are classified as part- time or full-time regular employees, or six (6) months of probationary status.

FULL-TIME EMPLOYEE: Is an employee who is regularly scheduled to work no less that forty (40) hours per work week.

FULL-TIME REGULAR EMPLOYEE: Is an employee hired for an indefinite term into a budgeted position, who is regularly scheduled to work no less than forty (40) hours per work week, has successfully completed the probationary period, and has been retained by the City.

MANAGEMENT LEAVE: Is paid leave granted by Section 8.2 of these Personnel Rules designed to recognize the hours worked beyond the normal work week by an employee .

PART-TIME EMPLOYEE: An employee who is hired into a position for less than forty (40) hours per week.

PERSONNEL OFFICER: The City Manager or the individual designated by the City Manager to administer the personnel system.

PERSONNEL ORDINANCE: Lake Forest Municipal Code Chapter that creates a personnel system for the City.

POSITION: A group of duties and responsibilities in the competitive service requiring full-time or part-time employment of one (1) person.

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59 PROBATIONARY EMPLOYEE: An employee who has been appointed to a position, who is currently in the working test period where the employee is required to demonstrate the fitness for the position to which he/she is appointed by actual performance of the duties of the position.

PROBATIONARY PERIOD: A working test period during which an employee is required to demonstrate the fitness for the position to which he/she is appointed by actual performance of the duties of the position.

PROMOTION: The movement of an employee from one class to another classification having a higher maximum rate of pay.

PROVISIONAL EMPLOYEE: A temporary appointed employee who possesses the minimum training and experience qualifications for a particular position and appointed to a vacant position in the absence of available eligible individuals from an employment list or during a temporary vacancy due to another employee’s leave of absence.

REGULAR EMPLOYEE: An employee who has successfully completed his/her probationary period and has been retained as provided in these Personnel Rules.

REINSTATEMENT: The employment without examination of a former regular employee or probationary employee.

SALARY: The amount of compensation provided to an employee in the classified service, within a maximum and minimum range of pay that corresponds to the classification of the position held by that employee and is based upon the classification plan and compensation schedule, adopted by the City Council.

SUSPENSION WITHOUT PAY: The temporary separation from the service of any employee, without pay, for disciplinary purposes.

TEMPORARY EMPLOYEE: An employee who is hired into any classification to meet a short-term need of the City. A temporary employee is employed at-will, does not receive most City provided benefits (except CalPERS benefits if determined to be required by law) and shall be hired for a specified term, not to exceed six (6) months and/or 980 hours per year, with the express written approval of the City Manager.

TRANSFER: A change of an employee from one position to another position in the same classification or in a comparable class with the same maximum rate of pay.

WAGE: The amount of compensation provided to a part-time, temporary, or seasonal employee, as an hourly rate of pay that corresponds to the position held by that employee Item: 11
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60 as set forth in the Classification Plan and Compensation Schedule, adopted by the City Council.

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TABLE OF CONTENTS
Page No.

CHAPTER 1 INTRODUCTION.................................................................................1

1.1 PERSONNEL SYSTEM .................................................................... 1

1.2 GENERAL PROVISIONS ................................................................. 1

1.3 COMPETITIVE SERVICE................................................................ 2

1.4 APPLICABILITY OF RULES TO CERTAIN POSITIONS
EXCLUDED FROM COMPETITIVE SERVICE .............................3

1.5 PERSONNEL OFFICER.................................................................... 3

1.6 PERSONNEL REPORTS AND FILES ............................................. 4 CHAPTER 2 RECRUITMENT, SELECTION, APPOINTMENT, AND
PROBATION .....................................................................................5

2.1 GENERAL PROVISIONS REGARDING APPOINTMENTS ......... 5

2.2 APPLICATIONS AND APPLICANTS............................................. 5

2.3 PRE-EMPLOYMENT PHYSICAL EXAMINATIONS.................... 6

2.4 EXAMINATIONS.............................................................................. 6

2.5 EMPLOYMENT LISTS…………………………………………….7

2.6 METHOD OF FILLING VACANCIES............................................ 8

2.7 PROBATIONARY PERIOD ............................................................. 9

2.8 BACKGROUND INVESTIGATION .............................................. 11

2.9 TRANSFER, PROMOTION, AND REINSTATEMENT ............... 11 CHAPTER 3 DISCIPLINE .....................................................................................13

3.1 STANDARD FOR DISCIPLINE..................................................... 13

3.2 RANGE OF DISCIPLINARY ACTION ......................................... 13

3.3 PROGRESSIVE DISCIPLINE......................................................... 13

3.4 IMPOSITION OF DISCIPLINE ...................................................... 16

3.5 PLACEMENT IN PERSONNEL FILE ........................................... 18

3.6 EMPLOYEE ACKNOWLEDGMENT............................................ 18

3.7 ADMINISTRATIVE LEAVE.......................................................... 18

3.8 EMERGENCY SUSPENSION ........................................................ 18

3.9 TIME EXTENSIONS....................................................................... 19 Item: 11
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3.10 DELIVERY OF NOTICE ................................................................ 19

3.11 RIGHT OF APPEAL........................................................................ 19

3.12 RULES ON APPEAL TO THE CITY MANAGER ........................ 19 CHAPTER 4 COMPLAINT AND GRIEVANCE PROCEDURE .........................22

4.1 PURPOSE OF COMPLAINT AND GRIEVANCE PROCEDURE 22

4.2 DEFINITIONS ................................................................................. 22

4.3 COMPLAINT PROCEDURE .......................................................... 22

4.4 GRIEVANCE PROCEDURE .......................................................... 23

4.5 GENERAL PROVISIONS ............................................................... 24 CHAPTER 5 SEPARATION FROM SERVICE ....................................................25

5.1 DISCHARGE/TERMINATION ...................................................... 25

5.2 LAY OFF.......................................................................................... 25

5.3 RESIGNATION ............................................................................... 25

5.4 JOB ABANDONMENT................................................................... 26

5.5 RETIREMENT ............................................................................... 26 CHAPTER 6 COMPENSATION AND HOURS ...................................................27

6.1 CLASSIFICATION POLICY .......................................................... 27

6.2 FULL-TIME SALARY ADMINISTRATION POLICIES.............. 28

6.3 PART-TIME WAGE ADMINISTRATION POLICIES.................. 28

6.4 PERFORMANCE COMPENSATION PLAN................................. 29

6.5 WORKING HOURS ........................................................................ 31

6.6 PAY PERIODS AND PAY DAYS .................................................. 31

6.7 PAYROLL DEDUCTIONS ............................................................. 32

6.8 COMPENSATION FOR OVERTIME ............................................ 33

6.9 PAY FOR SERVING IN HIGHER JOB CLASSIFICATION ........ 34 CHAPTER 7 EMPLOYEE BENEFITS..................................................................36

7.1 HEALTH AND LIFE INSURANCE ............................................... 36

7.2 PUBLIC EMPLOYEES’ RETIREMENT SYSTEM . .................... 37

7.3 PHYSICAL EXAMINATION ALLOWANCE............................... 37 Item: 11
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7.4 CELL PHONE ALLOWANCE........................................................ 38

7.5 WORKERS’ COMPENSATION ..................................................... 38

7.6 DEFERRED COMPENSATION ..................................................... 38

7.7 TRAINING OF EMPLOYEES . ..................................................... 38

7.8 EXPENSE ALLOWANCES ............................................................ 39

7.9 LONG-TERM DISABILITY ........................................................... 40

7.10 SHORT-TERM DISABILITY ......................................................... 40

7.11 CONFERENCES, SEMINARS, AND MEMBERSHIPS................ 41

7.12 INSURANCE/BENEFIT PLANS .................................................... 41 CHAPTER 8 LEAVE..............................................................................................42

8.1 VACATION LEAVE ....................................................................... 42

8.2 MANAGEMENT LEAVE ............................................................... 43

8.3 HOLIDAYS...................................................................................... 43

8.4 SICK LEAVE ................................................................................... 44

8.5 FAMILY AND MEDICAL LEAVE POLICY ................................ 51

8.6 BEREAVEMENT LEAVE .............................................................. 51

8.7 REPRODUCTIVE LOSS LEAVE................................................... 51

8.8 MILITARY LEAVE......................................................................... 52

8.9 LEAVE OF ABSENCE WITHOUT PAY ....................................... 53

8.10 SCHOOL ACTIVITY LEAVE ........................................................ 53

8.11 JURY DUTY LEAVE ...................................................................... 54

8.12 ADMINISTRATION OF LEAVE ...................................................54 CHAPTER 9 MISCELLANEOUS..........................................................................55

9.1 NON-DISCRIMINATION POLICY ............................................... 55

9.2 POLITICAL ACTIVITY.................................................................. 55

9.3 POLITICAL ACTIVITIES OF PUBLIC EMPLOYEES................. 55

9.4 RIGHT TO CONTRACT FOR SPECIAL SERVICES ................... 55

9.5 SEVERABILITY.............................................................................. 56

9.6 CONFIDENTIAL POSITIONS ....................................................... 56

9.7 ADDITIONAL POLICIES............................................................... 56 Item: 11
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Paragraph 1: Family and Medical Leave Policy.............................56 Paragraph 2: Disability Discrimination Policy...............................56 Paragraph 3: Harassment, Discrimination, and Retaliation Policy.56 Paragraph 4: Drug and Alcohol-Free Workplace Policy................56 Paragraph 5: Conflict of Interest Code. ..........................................56 Paragraph 6: Computer and Telecommunications Equipment Use Policy.........................................................................57 Paragraph 7: Electronic Communication Usage and Retention Policy.........................................................................57 Paragraph 8: Workplace Violence Prevention Plan Policy. ...........57 Paragraph 9: Military Leave Policy................................................57

9.8 DEFINITION OF TERMS ............................................................... 57 EXHIBIT A -- Benefits Matrix ....................................................................A-1 Item: 11
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Exhibit A
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Exhibit A
Benefits Matrix
Effective June 20, 2025 January 1, 2025
1 May receive cell phone allowance or City paid cell phone but not both. 2 Grandfathered as of 08/22/2012. Positions filled prior to 08/22/2012 will receive the benefits of Category B, positions filled on or after 08/22/2012 will receive the benefits of Category C.

Category Car Allowance Life
Insurance
Additional
Vacation
Management
Administrativ
e Leave
(Hours)
Cell Phone1 Vacation Leave
A
$400/month or City
vehicle per
City discretion
1x Annual Salary 40 hours 5640 hours
$100
ACM
$80 DH
B
$250/month or City
vehicle per City
discretion
1 x Annual
Salary or 75,0002
(max)
No 24 40 hours
$80
ATCM
$30
MGR
C No $75,000 No 3216 hours No
D No $75,000 No No No
After the completion of the following
years of continuous service
employees begin to accrue this
number of hours annually.

Years In Service Annual Hours
0-2 80
3-7 120
8 or greater 160
City’s 20265 Health Contribution
(monthly)
City’s 20265 Dental;
Contribution (Monthly)
City’s 20265 Vision Contribution
(monthly)
Employee Only:
90% of the highest HMO plan offered.

Employee + 1:
90% of the highest HMO plan offered.

Family:
90% of the highest HMO plan offered.

Full-time employees who provide proof of enrollment in a group medical plan may receive cash in lieu benefit of $450 per month as taxable income.

Employee Only:
$51.60
Employee + 1:
$104.70
Family:
$158.20
Employee Only:
$16.50
Employee + 1:
$23.20
Family:
$40.10
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Exhibit A
Benefits Matrix
Effective June 20, 2025 January 1, 2025
1 May receive cell phone allowance or City paid cell phone but not both. 2 Grandfathered as of 08/22/2012. Positions filled prior to 08/22/2012 will receive the benefits of Category B, positions filled on or after 08/22/2012 will receive the benefits of Category C.

A B C D
Assistant City Manager Accounting Manager Accounting Supervisor Accountant City Clerk Administrative Services Manager Assistant City Clerk Accounting Technician Deputy City Manager Assistant Director of Community Development Associate Planner Administrative Specialist Director of Community
Development Assistant Director of Finance Code Enforcement Supervisor Assistant City Clerk Director of Community Services Assistant to the City Manager Communications & Marketing Analyst Assistant Planner Director of Economic
Development Asst. Dir. of Public Works/Asst. City Engineer Communications & Marketing Specialist Audio Visual Technician
Director of Finance CIP Manager Environmental Compliance Inspector Building Permit Technician Director of Management
Services Code Enforcement Manager Executive Assistant Code Enforcement Officer Director of Public
Works/City Engineer Communications & Marketing Manager Facilities Supervisor Community Outreach Specialist Deputy Director of Maintenance and Facilities Finance Analyst Community Preservation Technician Economic Development Manager GIS/Applications Analyst Engineering Aide Economic Development/Housing Manager Information Technology Analyst Engineering Technician Engineering Services Manager/Assistant City Engineer Information Technology Specialist Facilities Maintenance Specialist Environmental Manager Landscape Administrator GIS/Applications Technician Facilities Manager Management Analyst Human Resources Technician Housing Manager Management Assistant Management Aide
Human Resources Manager Principal Civil Engineer Office Specialist Information Technology Manager Principal Planner Permit Technician Planning Manager Public Works Supervisor Planning Aide
Public Safety Manager Recreation Supervisor Receptionist/Cashier Public Works Maintenance Manager Senior Accountant Records Coordinator Recreation Manager Senior Communications & Marketing
Analyst Records Specialist
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Exhibit A
Benefits Matrix
Effective June 20, 2025 January 1, 2025
1 May receive cell phone allowance or City paid cell phone but not both. 2 Grandfathered as of 08/22/2012. Positions filled prior to 08/22/2012 will receive the benefits of Category B, positions filled on or after 08/22/2012 will receive the benefits of Category C.

A B C D
Traffic Engineer Manager Senior Communications & Marketing Specialist Senior Accounting Technician
Senior Financial Analyst Senior Audio-Visual Technician Senior Information Technology
Analyst Senior Building Permit Technician
Senior Landscape Administrator Senior Code Enforcement Officer Senior Management Analyst Senior Community Outreach Specialist Senior Planner *2 Senior Facilities Maintenance Specialist Senior Recreations Supervisor Senior Office Specialist
Senior Permit Technician
Senior Street Maintenance Administrator
Street Maintenance Administrator
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ATTACHMENT 5
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RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA,

ADOPTING AN AMENDMENT OF THE PERSONNEL RULES AND

REGULATIONS

THE CITY COUNCIL OF THE CITY OF LAKE FOREST DOES
HEREBY RESOLVE AS FOLLOWS:

WHEREAS, the City has adopted and amended, from time to time, the Personnel Rules and Regulations in accordance with Municipal Code Sections

2.60.030 and 2.60.050; and
WHEREAS, the City Council now desires to make changes to the Personnel Rules and Regulations to ensure compliance with new laws and to conform to current practices; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE

FOREST, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND
ORDER AS FOLLOWS:

SECTION 1. The City Council approves the amendments to the Personnel Rules and Regulations, attached hereto as Exhibit A, and directs the Personnel Officer to have those changes incorporated into the Personnel Rules and Regulations and disseminated to all employees affected by the changes.

PASSED, APPROVED AND ADOPTED this ___ day of _____, 2025 by the following vote, to wit:
_____________________

SCOTT VOIGTS
MAYOR
ATTEST:
______________________________

THY MERRITT

ACTING CITY CLERK
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APPROVED AS TO FORM:
______________________

MATTHEW RICHARDSON

CITY ATTORNEY

STATE OF CALIFORNIA)

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Thy Merritt, Acting City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No.__ was duly passed and adopted at a regular meeting of the Lake Forest City Council on the ___ day of _____, 2025 by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
_______________________

THY MERRITT

ACTING CITY CLERK
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EXHIBIT
A
NOTE: A clean version of the Personnel Rules and Regulations will be attached if approved by the City Council. Please see Attachment 4 for a red- lined (underline/strike-out) version of the Personnel Rules and Regulations.

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CITY COUNCIL AGENDA REPORT
MEETING DATE: 6/3/2025
DEPARTMENT: Finance
SUBJECT:
2025-2027 OPERATING BUDGET AND 2025-2032 MASTER FINANCIAL PLAN

AND FINANCIAL FORECAST
RECOMMENDED ACTION(S):

Adopt a resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING A BUDGET FOR 2025- 2027; APPROPRIATING FUNDS FOR FISCAL YEAR 2025-26 ONLY AND AUTHORIZING CERTAIN ACTIONS WITH APPROPRIATIONS; AND
ADOPTING ALL OF THE FOLLOWING: THE 2025-2032 STRATEGIC
BUSINESS PLAN, THE 2025-2032 CAPITAL IMPROVEMENT PLAN, THE 2025 GENERAL FUND RESERVE RISK ANALYSIS, THE 2025-2032 MASTER

FINANCIAL PLAN AND FINANCIAL FORECAST, AND UPDATING THE

FINANCIAL MANAGEMENT AND BUDGETARY POLICY
EXECUTIVE SUMMARY:

The Financial Management and Budgetary Policy (“Policy”) requires the City Manager to present a proposed budget to the City Council on a biennial basis to be adopted by June 30 of each odd-number year preceding the commencement of the two-year budget cycle. The budget is a resource allocation document and serves as the financial plan for the City, providing policy direction in the areas of service levels and funding priorities. The long-range fiscal perspective includes the development of a two-year Operating Budget, seven-year Capital Improvement Plan, and a seven-year Financial Forecast.

The City Council held its Budget Workshop on April 29, 2025, (“Budget Workshop”) and received presentations from staff on the City’s financial planning documents, including the Proposed 2025-2032 Strategic Business Plan, Proposed 2025-2032 Capital Improvement Plan, Proposed 2025-2027 Operating Budget, and the Proposed 2025-2032 Financial Forecast.

Staff believe the financial planning documents have been prepared and analyzed to ensure the City’s financial integrity and strong financial condition. In developing and deliberating these documents, staff ensured a continued adherence to the Policy to preserve the City's long-term, conservative financial vision. Staff believe the revisions made since the Budget Workshop are Item: 12
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consistent with the direction provided by the City Council and will result in a reasonable estimate of the City’s financial position. The recommended action is to adopt a resolution approving the financial planning documents and authorizing funding for Fiscal Years 2025–26, as provided in Attachment 2.

The Proposed 2025–2027 Operating Budget maintains municipal services at current levels and continues providing services that address community priorities.

Total revenues are projected to be $85.3 million in FY 2025–26 and $85.0 million in FY 2026–27. Total expenditures are projected to be $94.3 million in FY 2025– 26 and $86.3 million in FY 2026–27.

General Fund revenues are projected to be $69.1 million in Fiscal Year 2025–26 and $70.6 million in Fiscal Year 2026–27. General Fund expenditures are projected to be $64.3 million in Fiscal Year 2025–26 and $66.2 million in Fiscal Year 2026–27. The Proposed Operating Budget is balanced without drawing down General Fund reserves to support operating activities. The operating budget is expected to generate a surplus of $4.8 million in Fiscal Year 2025-26 (Attachment 5), and a surplus of $4.4 million in Fiscal Year 2026-27 (Attachment 6).

The Proposed 2025-2032 Capital Improvement Plan for the 2025-2027 budget cycle includes 45 proposed projects, totaling $23.6 million in infrastructure investment in Fiscal Year 2025-26. These projects included one environmental project, nine traffic improvement projects, eight street improvement projects, and 16 park improvement projects. Approving the recommended action would approve the funding for Fiscal Year 2025-26 of the 2025-2032 Capital Improvement Plan. Funding for Fiscal Year 2026-27 would be presented for City Council consideration in June of 2026.

The Proposed 2025-2032 Financial Forecast maintains a balanced operating budget for the upcoming seven fiscal years. Over the projection period, the accumulated projected operating surplus is approximately $26.5 million. The resulting surplus provides for resources to utilize toward one-time operating projects, capital replacement needs, and maintaining a funded Target Reserve level in accordance with the Risk Analysis.

Overall, staff believe these financial planning documents and the execution of the initiatives in the Strategic Plan will reinforce the City’s financial integrity, safeguard its assets, and ensure the provision of services that address the priorities of community.

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BACKGROUND:

The City Council held its Budget Workshop on April 29, 2025. Staff provided presentations on the City’s financial planning documents, including the Proposed 2025 Strategic Plan Update, Proposed 2025-2032 Capital Improvement Plan, Proposed 2025-2027 Operating Budget, and the Financial Forecast.

DISCUSSION:

In accordance with the City’s Financial Management and Budgetary Policy (“Policy”), staff presents a proposed budget to the City Council on a biennial basis, to be adopted in odd-numbered years preceding the start of each two-year budget cycle. The Policy establishes a long-range fiscal perspective that includes the development of a two-year Operating Budget, a seven-year Capital Improvement Plan (CIP), and a Master Financial Plan (MFP) with a corresponding seven-year Financial Forecast.

Attachment 1 includes the 2025–2027 Operating Budget Transmittal Review Letter from the City Manager, which provides a high-level summary of the proposed budget and outlines how it aligns with the City’s Strategic Business Plan (“Strategic Plan”).

To facilitate review, the following discussion is organized into six key areas:
•2025 Strategic Plan Update
•2025 General Fund Reserve Risk Analysis
•2025-2027 Operating Budget Overview
•2025–2032 Capital Improvement Plan
•2025–2032 Master Financial Plan and Financial Forecast •Conclusion
2025 Strategic Plan Update
Upon the City Council’s approval of the 2025 Strategic Plan Update, staff will finalize and publish the document on the City’s website. The implementation of the Strategic Plan is managed by the City Manager’s Office and progress updates will be provided to the City Council on a quarterly basis. The 2025 Strategic Plan Update includes the addition of 33 new initiatives (Attachment 3, yellow highlighted sections). The update also includes the removal of 27 initiatives that were either completed or are recommended for removal for other reasons, since the Strategic Plan’s adoption in 2023 (Attachment 3, strikethrough text sections). In some instances, existing initiatives were edited to include changes that occurred during the implementation (Attachment 3, tan highlighted sections).

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The 2025 Strategic Plan Update is virtually the same document that was provided to the City Council and summarized during the Budget Workshop.

Since that Budget Workshop, staff have only added and updated the status of initiatives in the 2023 Plan and renumbered these initiatives so that they are included in the plan update. Pending City Council approval, the Strategic Plan will be incorporated within the complete budget book document and will include detailed descriptions and information about each initiative. 2025 General Fund Reserve Risk Analysis
The City’s Financial Management and Budgetary Policy requires that a Risk Analysis be conducted every two years in conjunction with the development of the Operating Budget. This analysis identifies key risk factors that could affect the City’s ability to maintain consistent service levels during the seven-year financial forecast period and establishes a prudent reserve level based on those risks.

The 2025 General Fund Reserve Risk Analysis (Attachment 4) recommends a Target Reserve Level of $80.0 million and a Minimum Reserve Level of $76.0 million, representing a 5% buffer below the target. These amounts are based on a detailed evaluation of eight key risk factors and reflect adjustments made since the 2023 Reserve Risk Analysis.

The following table summarizes the recommended reserve levels by risk category compared to the prior analysis:

Table 1: Reserve Risk Factor Comparison (2023 vs. 2025) in millions 2023 2025 Variance
Target
Reserve Level $56.6 $80.0 $23.4
Minimum
Reserve Level $53.8 $76.0 $22.2
Two significant changes were made in the 2025 analysis:
•Capital Reserve Adjustment Based on Asset Management Plan: The reserve for capital infrastructure has been updated to reflect the City’s Asset Management Plan (AMP), which now serves as the foundation for identifying and prioritizing long-term infrastructure needs. By using this data-driven tool, the City can more accurately assess risk and ensure that reserve levels align with actual exposure. This approach supports a proactive, sustainable capital strategy and reduces the likelihood of deferred maintenance or reactive funding decisions.

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•Establishment of the Employee Paid Leave Fund: The City created a new internal fund to address the cost for unused employee leave balances, such as vacation and sick time. Although these costs are not new, the upcoming implementation of a new accounting standard from the Government Accounting Standards Board (GASB) aims to increase visibility and consistent treatment amongst governments. While the standard does not require the establishment of a reserve, the City has proactively incorporated this into its risk reserve strategy.

The recommended action will adopt the proposed reserve levels for the 2025– 2027 budget cycle and align the City’s reserves with its most current risk exposure.
2025-2027 Operating Budget Overview
The Proposed 2025–2027 Operating Budget maintains municipal services at current levels and continues providing services that reflect the priorities of the community. Total revenues are projected to be $85.3 million in Fiscal Year 2025– 26 and $85.0 million in Fiscal Year 2026–27. Total expenditures are projected to be $94.3 million in Fiscal Year 2025–26 and $86.3 million in Fiscal Year 2026–

27. General Fund revenues are projected to be $69.1 million in Fiscal Year 2025–26 and $70.6 million in Fiscal Year 2026–27. General Fund expenditures are projected to be $64.3 million in Fiscal Year 2025–26 and $66.2 million in Fiscal Year 2026–27. The Proposed Operating Budget is balanced without drawing down General Fund reserves to support operating activities.

Since the Budget Workshop, the only revision to the budget has been a slight increase in Gas Tax revenue projections. Updated estimates for Highway Users Tax Account (HUTA) and Road Maintenance and Rehabilitation Account (RMRA) funding reflect revised figures received after the April 29, 2025, Budget Workshop. These adjustments have been incorporated into the final budget and reflect the most current information available at this time.

Tables 2-5 below reflect these updated projections and provide a summary of total revenues and expenditures for the 2025–2027 budget cycle.

Table 2: Revenues by Fund
Fund Name FY 2025-26 FY 2026-27
General 69,105,500 70,598,200
Low- and Moderate-Income Housing Asset 55,000 57,000 State Gas Tax HUTA 2,539,300 2,437,400
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State GAS Tax RMRA 2,394,000 2,269,800
SCAQMD AB2766 Subvention 127,000 112,700 Measure M2 Local Fair Share 2,011,100 2,062,800 Measure M2 Senior Mobility 116,900 119,900 Supplemental Law Enforcement Services 300,000 300,000 Solid Waste 1,420,620 1,420,620
Beverage Recycling 21,000 21,000
Certified Access Specialist CASP 5,000 5,000 Permanent Local Housing Allocation 145,300 - Community Development Block Grant 1,121,110 1,180,000 City Facilities Improvement 2,250,000 2,300,000 City Facilities Capital Improvement 2,160,400 1,200,000 Lake Forest Traffic Mitigation 475,000 380,000 Foothill Circulation Phasing Plan 1,018,000 511,000 Park Development 23,100 -
TOTAL 85,288,330 84,975,420
Table 3: Expenditures by Fund
Fund Name FY 2025-26 FY 2026-27
General 64,285,800 66,231,800
General Fund CIP 5,450,000 6,134,000
Employee Paid Leave - -
Infrastructure 3,100,000 1,640,000
Neighborhood Park Improvement 840,000 1,000,000 Low- and Moderate-Income Housing Asset 203,000 129,500 State Gas Tax HUTA 2,791,900 2,400,200
State GAS Tax RMRA 3,025,000 2,200,000
SCAQMD AB2766 Subvention 370,000 - Measure M2 Local Fair Share 2,100,000 2,101,000 Measure M2 Senior Mobility 195,700 214,200 Supplemental Law Enforcement Services 601,000 550,000 Solid Waste 1,420,620 1,420,620
Beverage Recycling 21,000 21,000 Certified Access Specialist CASP 5,000 5,000 Permanent Local Housing Allocation 463,200 - Community Development Block Grant 1,121,110 1,180,000 Lake Forest Traffic Mitigation 1,126,100 1,095,000 Foothill Circulation Phasing Plan 4,655,000 10,000 Meadows Traffic Improvement 2,180,000 - Park Development 320,000 - TOTAL 94,274,430 86,332,320
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Table 4: General Fund Revenues
Revenue Type FY 2025-26 FY 2026-27
Taxes 55,256,800 57,191,500
Intergovernmental 435,000 460,000 Licenses and Permits 1,936,300 1,670,200 Charges for Current Services 3,223,400 3,110,300 Developer Contributions 93,000 38,000 Fines, Forfeitures, and Penalties 790,000 790,000 Use of Money and Property 7,091,000 7,058,200 Other Revenues 280,000 280,000
TOTAL 69,105,500 70,598,200
Table 5: General Fund Expenditures
Expenditure Major Program Area FY 2025-26 FY 2026-27
Legislative 381,700 452,000
Management and Support 10,850,000 10,662,900 Public Safety 24,825,900 26,642,000
Infrastructure Maintenance Service 12,716,600 12,695,100 Planning, Engineering, Building and Safety 6,883,300 6,808,400 Transportation 509,600 702,300
Environmental Services 1,206,400 1,212,900 Culture, Leisure, & Recreation 5,256,200 5,171,100 Community Vitality & Engagement 1,656,100 1,885,100 Total 64,285,800 66,231,800
Adopting the attached resolution would approve the funding for Fiscal Year 2025- 26 of the 2025-2027 Operating Budget (Attachment 2). Funding for Fiscal Year 2026-27 would be presented for City Council consideration in June of 2026. 2023-2030 Capital Improvement Plan
The Proposed 2025–2032 Capital Improvement Plan (CIP) (Attachment 7) includes 50 project line items totaling approximately $95.6 million in planned improvements over the seven-year period.

For the upcoming two-year budget cycle (FY 2025–27), the CIP includes 45 proposed projects totaling approximately $38.6 million in infrastructure investment. Of that total, $23.6 million is allocated for Fiscal Year 2025–26, which is the only year being appropriated at this time. Funding for FY 2026–27 will be presented to the City Council for consideration in June 2026. These projects include:
•1 environmental project
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•6 facilities projects
•17 park improvement projects
•12 street improvement projects
•8 traffic improvement projects
These projects were developed based on input from the Strategic Planning process, the 2025 Community Satisfaction Survey, and City Council direction.

The prioritization process considered funding source restrictions, project readiness, cost escalation risk, and available staff capacity. Staff categorized projects by funding source to ensure optimal use of restricted funds before allocating General Fund resources.

The seven-year CIP is updated on a rolling basis and will continue to evolve as priorities shift and new funding becomes available. Although Council is being asked to approve the full plan, only the first year of funding (FY 2025–26) is recommended for appropriation at this time. Funding for FY 2026–27 will be brought back for consideration as part of next year’s budget update. 2025-2032 Master Financial Plan and Financial Forecast
The Proposed 2025–2032 Master Financial Plan (“MFP”) includes a long-term financial forecast that supports fiscal planning over a seven-year horizon. The forecast extends beyond the two-year budget cycle and reflects current trends in major General Fund revenues and expenditures.

A scenario-based approach is used to model potential outcomes under three conditions: Expected, Opportunity, and Risk. The Expected Scenario serves as the baseline for long-term planning, assuming moderate growth consistent with historical performance and known economic conditions.

Staff believe the assumptions used in the forecast represent a reasonable projection of the City’s financial position. Under the Expected Scenario, the forecast anticipates balanced operations throughout the projection period, with an accumulated surplus of approximately $26.5 million.

The updated 2025–2032 MFP and Financial Forecast is included as Attachment

8. Financial Management and Budgetary Policy
As part of the biennial budget process, the City Council reviews and updates the Financial Management and Budgetary Policy (“Policy”) to ensure it reflects current operational practices, financial regulations, and strategic objectives. The Policy serves as the City’s financial framework, guiding budget development, reserve management, and long-term fiscal planning.

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For the 2025–2027 budget cycle, several updates were incorporated. While many of the revisions were minor adjustments to improve clarity, consistency, and formatting, a few substantive changes were made:
•CDBG Transfers: Clarified that the City Manager may approve transfers between the Operating Budget and Capital Improvement Plan within the Community Development Block Grant (CDBG) Fund, provided they are consistent with the City’s approved CDBG Action Plan and federal requirements. These transfers will be reported to the City Council Audit Committee for transparency.
•Employee Paid Leave Fund: Established a dedicated fund to manage the City’s financial obligation related to unused employee leave balances. The Policy authorizes the City Manager to appropriate funds as needed during the fiscal year to maintain the reserve at an appropriate level. •Grant Management: Added new provisions outlining responsibilities related to the application, acceptance, management, and closeout of grant- funded projects. This section establishes internal expectations for grant oversight and compliance with state and federal funding requirements. •Popular Annual Financial Report (PAFR): Added provisions for the continued preparation of a PAFR to enhance public understanding of City finances and promote financial transparency.
•Audit Committee Participation: Clarified language for composition of the Audit Committee to include the Director of Finance/City Treasurer as a formal participant, ensuring financial leadership is included in audit oversight.
•Banking Service Selection: Clarified language to provide consistent treatment for banking and investment services.

These updates ensure the Policy remains aligned with best practices and supports sound fiscal management. The revisions can be tracked via the redlined Financial Management and Budgetary Policy provided as Attachment 9.

FISCAL IMPACT:

The fiscal impact of the recommended actions establishes the revenue estimates and authorizes the appropriations for Fiscal Year 2025–26. In addition, the Target Reserve Level and Minimum Reserve Level for the General Fund would Item: 12
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be adopted as part of the Risk Reserve Policy. Fiscal Year 2026–27 revenue estimates and appropriations will be presented for the City Council’s consideration in June 2026.

ATTACHMENTS:

1. Transmittal Letter

2. Resolution 2025-XX

3. Update to the 2025-2032 Strategic Business Plan

4. 2025 General Fund Reserve Risk Analysis

5. Fiscal Year 2025-26 Fund Balance Summary

6. Fiscal Year 2026-27 Fund Balance Summary

7. 2025-2032 Capital Improvement Plan Summary

8. 2025-2032 Master Financial Plan and Financial Forecast

9. Financial Management and Budgetary Policy – redline version Initiated By: John Meza, Management Analyst
Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager
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Attachment 1
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Transmittal Letter for the 2025-2027 Operating Budget
Debra Rose, City Manager
June 3, 2025
Sta is pleased to present a balanced two-year operating budget that reects the community’s overall priorities. The budget functions as a resource allocation tool and nancial blueprint for the City of Lake Forest, oering policy guidance related to service levels and funding priorities.

Sta prepares and presents a proposed budget to the City Council on a biennial basis, adopted in odd-numbered years prior to the start of the two-year budget cycle. In accordance with the City’s Financial Management and Budgetary Policy, the City’s long-range scal planning includes a two-year Operating Budget, seven-year Capital Improvement Plan, Master Financial Plan (MFP), and a seven- year Financial Forecast.

The proposed nancial documents are developed to maintain the City’s strong nancial health and ensure continued stability into the future. In preparing these documents, sta remained committed to preserve the City’s long-term, conservative nancial outlook.

Collectively, the nancial planning documents and implementation of Strategic Plan initiatives reinforce the City’s nancial foundation, safeguard public resources, and support the delivery of services that reect community priorities. 2025-2027 Operating Budget Overview
The City of Lake Forest 2025-2027 Operating Budget maintains municipal services at current levels. Total revenues are projected to be $85.2 million in Fiscal Year 2025-26 and $85.0 million in Fiscal Year 2026-27. Total expenditures are projected to be $94.3 million in Fiscal Year 2025-26 and $86.3 million in Fiscal Year 2026-27. The budget is composed of the General Fund, Special Revenue Funds, and Capital Projects Funds. The table below summarizes the budgeted expenditures by fund type.

Summary of Fiscal Year 2025-26 Budgeted Expenditures by Fund Operating Budget
(in millions)
Capital Budget
(in millions)
Total
(in millions)% of Total
General Fund $ 64.3 $   9.4 $ 73.7   78 %
Special Revenue Funds $   6.1 $   6.2 $ 12.3   13 %
Capital Projects Funds $   0.3 $   8.0 $   8.3    9 %
Total $ 70.7 $ 23.6 $ 94.3 100 %
Summary of Fiscal Year 2026-27 Budgeted Expenditures by Fund Operating Budget
(in millions)
Capital Budget
(in millions)
Total
(in millions)% of Total
General Fund $ 66.2 $  8.8 $ 75.0   87 %
Special Revenue Funds $   5.3 $  4.9 $ 10.2   12 %
Capital Projects Funds $   0.3 $  0.8 $   1.1     1 %
Total $ 71.8 $  14.5 $ 86.3 100 %
City of Lake Forest | 2025-2027 Operating Budget
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2025-2027 Review
Due to prudent management of operating funds, the City continued to make signicant strides in delivering several important projects. The City's Strategic Business Plan (Strategic Plan) serves as the primary driver for the prioritization of projects and integrates the vision of the community, anticipated needs of the City, and leadership of elected ocials. The 2023-2030 Strategic Plan was approved on June 20, 2023. The Strategic Plan was developed through a comprehensive public engagement process that included residents, each commission, and the City Council. This engagement was carried out throughout the course of the 2023-2025 budget development process and informed budgetary decisions and priorities in the biennial budget. During the development process for each biennial budget, the Strategic Plan is revisited and updated to account for accomplished initiatives, updated priorities, and new initiatives identied through the comprehensive public engagement process.

The 2023-2030 Strategic Plan includes three major goals and 80 initiatives categorized under each of the three major goals. Each initiative facilitates progress towards one of the three Strategic Plan goals and helps identify the advances in the pursuit of these goals. For each of the three major goals, the City has completed and made signicant progress on the Strategic Plan initiatives in 2023-2030. Some highlights for 2023-2025 include the following completed initiatives.

Goal A - Our livable City is well-planned, attractive, and safe.

The City focused on enhancing community spaces, improving accessibility, and ensuring public safety through various strategic initiatives. Investments in infrastructure, housing, and transportation were made to improve the overall quality of life for residents while maintaining the City's well-planned and aesthetically pleasing environment. Additionally, the City prioritized neighborhood enhancements and public safety improvements, ensuring that residents have access to well-maintained parks, ecient trac solutions, and safe, inviting public spaces. Through these eorts, the City has continued to cultivate a high standard of living that fosters community engagement and long-term sustainability. The City focused on enhancing community spaces, improving accessibility, and ensuring public safety through various strategic initiatives. Investments in infrastructure, housing, and transportation improve the overall quality of life for residents while maintaining the City's well-planned and aesthetically pleasing environment.

Notable accomplished initiatives under Goal A include:

As part of its Capital Improvement Program, the City completed vital infrastructure upgrades to enhance safety and reduce trac congestion. Improvements included completion of major infrastructure projects such as the new left turn lanes at El Toro Road and Portola Parkway, new street signs citywide, Local Streets Slurry Seal Projects, Jeronimo and Muirlands Arterial Slurry Seal, Lake Forest Drive and Trabucco Road Street Resurfacing , and Trabuco Asphalt Trail Rehabilitation Projects.

The City’s in-house Parking Enforcement Program enhanced the City’s response to top reported neighborhood issues, improved the eectiveness of street sweeping, and enhanced the appearance of neighborhood streets.

Through a joint competitive procurement for solid waste services in partnership with the City of Laguna Hills, the City secured approximately $3 million in savings for customers and achieved recognition from the American Public Works Association (APWA) Southern California Chapter. The agreement also introduced new bin rollouts and improved commercial waste inspections.

As part of the Legislative Advocacy initiative, the City secured a multi-year contract with two government aairs rms to represent Lake Forest’s interests on key issues at the State and Federal levels.

The City successfully relaunched a signature community event through Taste of Lake Forest 2.0, bringing residents together to celebrate and support local businesses while fostering community pride and engagement.

With SEIP 2.0, the City updated its Strategic Economic Investment Program to better support business growth and community development. The City launched programs like Main Street Digital in partnership with the Small Business Development Center which provides training and grants that address evolving economic priorities and business growth needs.

The City completed four neighborhood park renovations, including Phase 1 of the Cavanaugh Park Study and the Arbors Mini Parks Enhancements, as well as the Lake Forest Sports Park Synthetic Field Replacement.

In response to growing interest, the City conducted a Pickleball Court Study to evaluate current facilities and identify opportunities for expanding access to this popular recreational activity.

In addition to completing the 2024 Community Satisfaction Survey, which found an 83% satisfaction rate for the City’s provision of municipal services, the City conducted an inaugural Community Focus Group Study which provided further depth and qualitative information and feedback.

In light of the Senior Mobility Program Expansion, the City increased marketing eorts and service availability to help older adults stay mobile, independent, and actively engaged in community life.

As part of the Lake Forest Geofence initiative, the City acquired mobile Automated License Plate Reader (ALPR) cameras to complete a virtual perimeter system to enhance public safety and law enforcement capabilities.

Improved emergency management capabilities including the purchase of additional 800 MHZ radios to support eld communications, increased resident participation in training through the Community Emergency Response Team (CERT), continued investment in sta emergency response training, and the adoption of a Local Hazard Mitigation Plan all enhanced the City’s emergency management capabilities. The Local Hazard Mitigation Plan provides the City with a comprehensive City of Lake Forest | 2025-2027 Operating Budget
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strategy to assess risks from natural disasters and outline actions to reduce their impact to safeguard the community and its infrastructure.

Goal B - Our connected City is engaged, informed, and technologically current.

The City prioritized eorts to improve communication, expand access to City services, and modernize technology to foster greater engagement with residents. Initiatives under this goal ensure that the community remains well-informed and connected while leveraging digital advancements to optimize City operations. The implementation of new technology and expanded communication platforms allows residents to receive real-time updates, participate in civic activities, and access government services more conveniently. By embracing innovative solutions, the City has strengthened its ability to engage with the public and provide seamless, responsive services that meet the evolving needs of the community. The City prioritizes eorts to improve communication, expand access to City services, and modernize technology to foster greater engagement with residents. Initiatives under this goal ensure that the community remains well-informed and connected while leveraging digital advancements to optimize City operations.

Notable accomplished initiatives under Goal B include:

As part of the Expand Holiday Lighting initiative, the City enhanced festive decorations along the El Toro Road corridor and along additional locations throughout the city, helping to create a more vibrant and welcoming atmosphere during the holiday season.

To celebrate a community landmark, the City hosted the Etnies Skatepark of Lake Forest 20th Anniversary Celebration, bringing residents together for a special event that recognized two decades of recreational impact and youth engagement.

The City introduced new cultural programming through the inaugural Multicultural Festival and Mid-Autumn Festival events, oering inclusive, family-friendly celebrations that reect the City’s evolving demographics and commitment to cultural enrichment.

With the adoption of a Translation Services Policy and the implementation of translation services, the City expanded language access, making it easier for non-English-speaking residents to understand and engage with programs, services, and important public information.

The relaunch of the Passport Issuance Program brought back a convenient service for the public to apply for or renew their passports locally.

To inspire civic interest in local government, the City hosted an inaugural Youth in Government Day, an interactive experience where students engaged with City leaders, explored City operations, and learned how municipal decisions shape their community.

The City launched an Informal Resident Survey System, PublicInput, to gather quick, real-time feedback on neighborhood issues. This tool helps sta stay responsive to resident needs and make data-informed decisions at the community level. The tool has been deployed on community projects including outreach for neighborhood parks, surveys about pickleball courts, and a citywide branding project.

Goal C - Our healthy City government is sustainable and well-run with committed people.

The City remained focused on long-term nancial sustainability, ecient government operations, and workforce development. By implementing policies and programs to enhance service delivery, streamline internal processes, and invest in its workforce, the City strengthened its ability to provide high-quality public services now and in the future. A focus on scal responsibility and sta development has ensured that the City operates eectively while planning for future challenges. Investments in recruitment, training, and internal process improvements have fostered a well-equipped and highly skilled workforce, enabling the City to continue delivering top-tier services that align with the expectations of residents and stakeholders. The City remained focused on long-term nancial sustainability, ecient government operations, and workforce development. By implementing policies and programs to enhance service delivery, streamline internal processes, and invest in its workforce, the City strengthened its ability to provide high- quality public services now and in the future.

Notable accomplished initiatives under Goal C include:

Through the completion of a user fee study, the creation of the City’s inaugural Popular Annual Financial Report (PAFR), and the launch of the City’s new electronic procurement platform, OpenGov, the City increased transparency, improved accountability, and expanded access to the City’s nancial practices and information.

As part of the eort to enhance rental experiences and support event programming, the City upgraded Community Center amenities by acquiring a fold-away dance oor, lighting, decorations, a piano, and electrical equipment to improve facility oerings and increase rental revenue.

The City of Lake Forest continues to make meaningful progress in implementing its Strategic Plan initiatives, with notable accomplishments achieved under the 2023–2025 Strategic Plan. These strategic items reect the City’s ongoing commitment to delivering high-quality services, enhancing community spaces, and addressing resident priorities. Looking ahead, the City is well- City of Lake Forest | 2025-2027 Operating Budget
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positioned to carry this momentum into the 2025–2027 Strategic Plan, further advancing community-driven goals that support a well- planned, connected, and sustainable future.
2025-2027 Operating Budget
The City will continue its scally conservative approach to budgeting ongoing operations and capital improvement projects.

Revenues
Total revenues for all funds are projected to be $85.2 million for FY 2025-26 and $85.0 million for FY 2026-27. General Fund revenue is projected to be $69.1 million in FY 2025-26 and $70.6 million in FY 2026-27. Property tax revenue is expected to grow 6% and 5% in FY 2025-26 and FY 2026-27 respectively. Sales and use tax revenue is expected to grow 2% in FY 2025-26 and 2% in FY 2026-27.

Projections for both revenue sources are based on consultant projections. Transient occupancy tax (TOT) revenue is expected to increase by 11% in FY 2025-26, with estimates based on current TOT receipts in FY 2024-25, and 0% in FY 2026-27. Sta believes these revenue projections utilize the best available information and represent a reasonable, yet cautious estimate. Revenues may be realized at higher or lower values and will be closely monitored during the scal year and adjustments will be proposed as necessary.

For a more detailed discussion of the revenue received by the City, projections, and assumptions, as well as individual estimates by category and fund, please see the Summary of Financial Reserve Funds, Risk Reserve Analysis, and the Master Financial Plan section of this budget document.

Expenditures
The 2025-2027 Operating Budget includes budgeted operating expenditures and funding for the Capital Improvement Plan (CIP) projects in Fiscal Year 2025-2026 (FY 2025-26) and Fiscal Year 2026-27 (FY 2026-27).

Operating Expenditures
The operating budget for all funds is $94.3 million in FY 2025-26. Overall, the FY 2025-26 budget for operating expenditures includes a decrease of ($1.7) million, or -2.6 % over the FY 2024-25 amended budget. This decrease is in part driven by decreases in contractual services, strategic economic investment program, supplies, materials, & other, and nally operating capital. Contractual services are expected to decrease ($0.77), or -3.1% in FY 2025-26 of the FY 2024-25 amended operating budget. This is largely due to aligning the budget with actual needs, reductions reecting past usage trends, operational changes, and the elimination of services that are no longer necessary. Contractual services account for 37% of total General Fund expenditures in FY 2025-26. The City's law enforcement contract with the Orange County Sheri’s Department (OCSD) is expected to increase $1.4 million, or 6.5% in FY 2025-26 over the FY 2024-25 amended operating budget and includes the addition of a patrol deputy. The law enforcement contract makes up 35% of total General Fund expenditures and 49% of total General Fund contract services in FY 2025-26 when all contract services are combined. Personnel services include all salaries, wages, and benets. Personnel services are expected to increase by $.70 million, or 5%, in FY 2025-26 over the FY 2024-25 amended operating budget.

The operating budget for all funds is $86.3 million in FY 2026-27. Overall, the FY 2026-27 budget for operating expenditures includes an increase of $1.9 million, or 3% over the FY 2025-26 budget. This increase is in part driven by an increase in the City's law enforcement contract and increases in total personnel costs. Contractual services continue to make up the largest portion of the operating budget at about 36% of total General Fund expenditures and are expected to increase $1.4 million, or 6% over the FY 2025- 26 budget. This is largely due to increasing rates and rising contract costs for ongoing services. As most contracts are structured as multi-year agreements with xed amounts over the multi-year contract period, this limits the growth of some contractual rates.

Completion of one-time initiatives that utilize contractual services may also limit growth in contractual services or cause slight decreases from year to year. The City's law enforcement contract with the OCSD is expected to increase $1.4 million, or 6% in FY 2026-27 over the FY 2025-26 operating budget and includes costs for an additional patrol deputy. This anticipated change would bring the law enforcement contract to make up 36% of total General Fund expenditures and 50% of total General Fund contract services in FY 2026-27 when all contract services are combined. Personnel services include all salaries, wages, and benets. Personnel services are expected to increase $0.7 million, or 5% in FY 2026-27 over the FY 2025-26 operating budget.

In addition to the impact of these general trends and increases, the City has identied strategic goals and incorporated funding for these initiatives in the 2025-2027 Operating Budget. Several of these goals arose out of the City's robust public engagement eorts and Community Satisfaction Survey. Notable high-impact initiatives include:

Enhancing trac ow and emergency response by implementing a real-time trac monitoring system that helps reduce congestion, enhance road safety, and support quicker incident management at key intersections.

Promoting Lake Forest as a business-friendly destination to help grow the local economy and reduce commercial vacancies.

Expanding access to aordable housing by transforming underused land into a new community space that includes housing, public park amenities, and improved parking for nearby residents and businesses.

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Updating the City’s user fee and cost allocation structure to ensure services are fairly priced, nancially sustainable, and aligned with actual service delivery costs.

Revitalizing aging commercial centers and attracting new businesses by engaging a professional broker to ll retail vacancies.

Strengthening community identity and economic visibility through the rollout of a unied city brand and public engagement campaign.

Ensuring new development pays its fair share by introducing a fee program that helps fund vital infrastructure improvements without shifting the burden to existing residents.

Investing in professional development for City employees to enhance teamwork, communication, and responsiveness across all areas of City operations.

Funding for these goals and initiatives, among other Strategic Business Plan ("Strategic Plan") initiatives, is included in the 2025-2027 Operating Budget and is further discussed in the 2025 update to the Strategic Plan and in the Program Financial Summaries section of the budget.

As Lake Forest continues its transition to a maintenance city, city goals and priorities shift towards improving the quality of life and current service oerings, improving technologies, and planning the city's nancial future. In addition to the Strategic Plan, a discussion of Short-Term Factors and Priorities and Issues is included in the Budget Overview section to consider the City's current concerns and priorities in greater depth.

Capital Improvement Plan
The 2025-2027 budget cycle of the 2025-2032 Capital Improvement Plan (CIP) includes 45 projects, totaling $38.4 million in infrastructure investment. CIP projects are designed to improve safety, ameliorate trac ow, repair or improve facilities and amenities, and sustain the roadway network. These projects include one environmental project, sixteen park improvement projects, eight street projects, and nine trac projects.

Capital Improvement Projects for 2025-2027 include the following Park projects:

Nature Park Trail Connection to Meadows & County Trails - Trail connection project linking Nature Park to Meadows and County trails.

Lake Forest Sports Park Renovations – New Windscreens, Soccer Netting and Background Screening.

Neighborhood Park Renovations - Cavanaugh Park, Nature Park and Lake Forest Park, Peachwood, and Vintage Park (Phase 2) – Park upgrades including new amenities and layout enhancements.

Slope Landscaping Removal and Replanting Project - Heroes Park Removal and replanting of slope landscaping to improve aesthetics and function.

Normandale Open Space Area Renovations – Improvements to the open space area for enhanced public use.

Capital Improvement Projects for 2025-2027 include the following Trac projects:

CDBG - Audible Pedestrian Signals – Installation of ADA-compliant pedestrian signals for improved accessibility.

Bake Parkway and Rockeld Trac Signal Synchronization Program – Signal timing updates to improve corridor eciency.

Second left-turn Lanes in All Directions at the Intersection of Los Alisos and Muirlands – Installation of additional left-turn lanes to reduce congestion.

Meadows Trac Improvements: Bake / Toledo – Improvements to trac ow near Bake/Toledo intersections.

Bake Pwky/Jeronimo Widening Improvements – Widening project to increase capacity on a major roadway.

Widening/Realignment of Jeronimo at El Toro Rd – Realignment and widening of intersection to support increased trac volumes.

Capital Improvement Projects for 2025-2027 include the following Street projects:

Slurry Seal and Street Resurfacing - Residential Slurry Seal Projects – Street surface maintenance for residential areas.

CDBG - ADA Ramps Phase 15 – Installation of ADA-compliant curb ramps to improve accessibility.

Southwest Lake Forest Crosswalk Enhancements – Safety improvements to crosswalks in key locations.

Rockeld Median at El Toro Road – Aesthetic and functional improvements to the Rockeld median.

The 2025–2027 Capital Improvement Plan reects the City’s continued investment in infrastructure, public safety, and quality of life through 45 carefully prioritized projects. With a focus on parks, trac ow, and roadway maintenance, these eorts will enhance daily life for residents while preserving vital community assets.

Fund Balances
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A Summary of Revenues, Expenditures, Transfers and Fund Balances for each scal year in the 2025-2027 Operating Budget can be found in the Budget Overview section of this budget book.

Additionally, sta prepared the General Fund Reserve Risk Analysis per the Risk Based Reserve Policy. The Target Reserve Level is $80 million. General Fund reserves will remain fully funded. For a more detailed discussion of City projections, assumptions, and estimates, please see the Summary of Financial Reserve Funds in the Budget Overview Section and Risk Reserve Analysis in the Supplemental Documents section.

Long Range Financial Planning
The City's Long range Master Financial Plan (MFP) has been developed and is included in this budget book in the Supplemental Document section. The MFP contains a seven-year General Fund Revenue forecast and expenditure plan which projects revenues, operating expenditures, transfers, funding available for capital projects, and projected reserve balances for the General Fund.

Looking forward, the MFP projection reects the level of General Fund revenues necessary to maintain operating programs and services at current levels.

The 2025-2032 Financial Forecast maintains a balanced operating budget for the upcoming ve scal years beyond the current budget cycle. Over the projection period, the accumulated projected operating surplus is approximately $26.5 million. The resulting surplus provides for resources to utilize towards one-time operating projects, capital replacement needs, and maintaining a funded Target Reserve level in accordance with the Risk Reserve Analysis. Sta will continue to work diligently to monitor ongoing revenue and expenditures and make whatever budgetary changes are necessary in order to maintain a balanced budget while keeping General Fund reserves at or above the target level as determined by City Council.

Conclusion
Throughout its history, the City of Lake Forest has earned a strong reputation for solid conservative scal planning. In FY 2025-26 and FY 2026-27, this philosophy has proven to be an eective tool in continuing to maintain service levels, address strategic priorities, and plan for the future.

The budget for 2025-2027 successfully maintains a level of service and programs that are important to the community and address the priorities of the City Council. I wish to thank City sta for their time and eort in developing a balanced budget for 2025-2027. The City’s forward-thinking, strategic planning, and attention to detail in the delivery of daily public services continue to be hallmarks of its pragmatic approach to local governance, which will allow the City to continue providing the high quality of life expected from our community.

Sincerely,
Debra Rose
City Manager
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5 2
2 4
2 ATTACHMENT 2
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RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA,
APPROVING A BUDGET FOR 2025-2027;

APPROPRIATING FUNDS FOR FISCAL YEAR
2025-26 ONLY AND AUTHORIZING CERTAIN
ACTIONS WITH APPROPRIATIONS; AND
ADOPTING ALL OF THE FOLLOWING: THE
2025-2032 STRATEGIC BUSINESS PLAN, THE
2025-2032 CAPITAL IMPROVEMENT PLAN,
THE 2025 GENERAL FUND RESERVE RISK
ANALYSIS, THE 2025-2032 MASTER

FINANCIAL PLAN AND FINANCIAL FORECAST,

AND UPDATING THE FINANCIAL

MANAGEMENT AND BUDGETARY POLICY
WHEREAS, the City Manager of the City of Lake Forest presented to the City Council on April 29, 2025, a Proposed Budget for Fiscal Year 2025- 26 and Fiscal Year 2026-27; and
WHEREAS, the City Council held a Budget Workshop on April 29, 2025; And
WHEREAS, Staff has made modifications and has presented the 2025-2027 Budget for Council consideration.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE

FOREST DOES HEREBY RESOLVE, DETERMINE, FIND AND ORDER
AS FOLLOWS:

Section 1. The City Council’s adoption of this Resolution is not a project within the meaning of the California Environmental Quality Act. Specifically, the City’s adoption of the Resolution is an administrative and fiscal function of the City that does not commit the City to any specific project or course of action. (State CEQA Guidelines, sections 15378(b)(4) & (b)(5).) Thus, no environmental review of the Resolution is required. The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the adoption of this Resolution.

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Section 2. The Update to the 2025-2032 Strategic Business Plan of the City of Lake Forest is hereby adopted.

Section 3. The 2025-2027 Operating Budget for the City of Lake Forest is hereby adopted.

Section 4. The 2025-2032 Capital Improvement Plan of the City of Lake Forest is herby adopted.

Section 5. The 2025 General Fund Reserve Risk Analysis of the City of Lake Forest is hereby adopted, establishing a Target Reserve Level of $80,000,000 and a Minimum Reserve Level of $76,000,000.

Section 6. The 2025-2032 Master Financial Plan and Financial Forecast of the City of Lake Forest is herby adopted.

Section 7. The appropriations are hereby authorized, and revenue estimates confirmed for Fiscal Year 2025-26 only, in accordance with the Proposed Budget dated April 29, 2025, as may be further modified by Council and staff on June 3, 2025, as reflected on Exhibit A to this Resolution.

Section 8. That, for FY 2025-26, the Department Directors, with the concurrence of the Director of Finance/City Treasurer, may transfer appropriations between programs under their responsibility within the same Program Area

Section 9. That for FY 2025-26, at the City Manager’s discretion, appropriations may be transferred between Program Areas within the Operating Budget. These transfers shall be reported to the City Council Audit Committee.

Section 10. That for FY 2025-26, at the City Manager’s discretion, appropriations may be transferred between funds. These transfers shall be reported to the City Council Audit Committee.

Section 11. That for FY 2025-26, at the City Manager’s discretion, appropriations may be transferred between existing capital improvement projects within the adopted CIP. These transfers shall be reported to the City Council Audit Committee.

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Section 12. That for FY 2025-26, the City Manager may approve transfers between the Operating Budget and CIP within the Community Development Block Grant (CDBG) Fund, provided the use is consistent with the City’s approved CDBG Action Plan and federal requirements. These transfers shall be reported to the City Council Audit Committee.

Section 13, Appropriations to the Employee Paid Leave Fund will be authorized by the City Manager on an as needed basis during the fiscal year.

Section 14. The City Clerk shall attest as to the adoption and execution of this Resolution and cause the same to be maintained in the permanent records of the City.

PASSED, APPROVED AND ADOPTED this 3rd day of June 2025, by the following vote, to wit:

ATTEST
:

SCOTT VOIGTS
MAYOR

THY MERRITT

CITY CLERK
APPROVED AS TO FORM:

MATTHEW E. RICHARDSON

CITY ATTORNEY
Item: 12
289

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

SS CITY OF LAKE FOREST )
I, Thy Merritt, City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No. 2025- was duly passed and adopted at a regular meeting of the Lake Forest City Council on the 3rd day of June 2025 by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

THY MERRITT

CITY CLERK
Item: 12
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EXHIBIT A
Revenue Estimates
Fund Name FY 2025-26
General 69,105,500
Low- and Moderate-Income Housing Asset 55,000
State Gas Tax HUTA 2,539,300
State GAS Tax RMRA 2,394,000
SCAQMD AB2766 Subvention 127,000
Measure M2 Local Fair Share 2,011,100
Measure M2 Senior Mobility 116,900
Supplemental Law Enforcement Services 300,000
Solid Waste 1,420,620
Beverage Recycling 21,000
Certified Access Specialist CASP 5,000
Permanent Local Housing Allocation 145,300
City Facilities Improvement 2,250,000
City Facilities Capital Improvement 2,160,400
Lake Forest Traffic Mitigation 475,000
Foothill Circulation Phasing Plan 1,018,000
Park Development 23,100
TOTAL 84,167,220
General Fund Revenue Estimates by Type
Revenue Type FY 2025-26
Taxes 55,256,800
Intergovernmental 435,000
Licenses and permits 1,936,300
Charges for Current Services 3,223,400
Developer Contributions 93,000
Fines, Forfeitures, and Penalties 790,000
Use of Money and Property 7,091,000
Other Revenues 280,000
TOTAL 69,105,500
General Fund Operating Appropriations
Expenditure Major Program Area FY 2025-26
Legislative 381,700
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Expenditure Major Program Area FY 2025-26
Management and Support 10,850,000
Public Safety 24,825,900
Infrastructure Maintenance Service 12,716,600
Planning, Engineering, Building and Safety 6,883,300 Transportation 509,600
Environmental Services 1,206,400
Culture, Leisure, & Recreation 5,256,200
Community Vitality & Engagement 1,656,100
Total 64,285,800
All Other Funds Operating Appropriations
Fund Name FY 2025-26
General 64,285,800
General Fund CIP Projects 5,450,000
Employee Paid Leave Fund -
Infrastructure Fund 3,100,000
Neighborhood Park Improvement Fund 840,000
Low- and Moderate-Income Housing Asset 203,000 State Gas Tax HUTA 2,791,900
State GAS Tax RMRA 3,025,000
SCAQMD AB2766 Subvention 370,000
Measure M2 Local Fair Share 2,100,000
Measure M2 Senior Mobility 195,700
Supplemental Law Enforcement Services 601,000 Solid Waste 1,420,620
Beverage Recycling 21,000
Certified Access Specialist CASP 5,000
Permanent Local Housing Allocation 463,200
Lake Forest Traffic Mitigation 1,126,100
Foothill Circulation Phasing Plan 4,655,000
Meadows Traffic Improvement 2,180,000
Park Development 320,000
TOTAL 93,153,320
Capital Improvement Plan Appropriations
Item: 12
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Funding Source Project FY 2025-26
General Fund Aliso Creek Drainage Repairs 30,000
General Fund Slurry Seal Civic Center 200,000
General Fund Civic Center Painting 950,000
General Fund Civic Center Fountain Repairs 120,000
General Fund Lake Forest Sports Park HVAC Replacement 600,000 General Fund Lake Forest Sports Park Roof Repairs 165,000 General Fund Etnies Skate Park Building Improvement
Project
100,000
General Fund Park Concrete Trail Repairs 100,000
General Fund Nature Park Trail Connection to Meadows &
County Trails
50,000
General Fund Etnies Skate Park Improvement Project 100,000 General Fund Lodge Pole & Metal Fence Repairs 325,000
General Fund Energy Efficient LED Lighting Projects - Etnies Skate Park
175,000
Neighborhood Park
Improvement Reserve Fund
Neighborhood Park Renovations - Nature
Park and Lake Forest Park
360,000
General Fund Lake Forest Sports Park Windscreens, Soccer Netting and Background Screening
250,000
Neighborhood Park
Improvement Reserve Fund
Neighborhood Park Renovations - Cavanaugh
Park
250,000
Neighborhood Park
Improvement Reserve Fund
Neighborhood Park Renovations - Peachwood
Park
230,000
General Fund
Neighborhood Park Renovations - Vintage
Park
200,000
General Fund
Pickleball Analysis and Court Installation
Project
420,000
General Fund
Lake Forest Sports Park Renovations 300,000
Park Development Fund
Foothill Ranch Box Lacrosse Installation
Project
320,000
General Fund
Normandale Open Space Area Renovations 365,000
General Fund
Citywide Park Restroom Painting and
Renovations Project
150,000
Gas Tax Road Maintenance and
Rehabilitation Account Fund
(RMRA SB1)
Slurry Seal and Street Resurfacing -
Residential Slurry Seal Project 1A
2,375,000
Solid Waste Pavement Impact
Fund
Slurry Seal and Street Resurfacing -
Residential Slurry Seal Project 1A
475,000
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Measure M2 Local Fairshare Slurry Seal and Street Resurfacing - Street Resurfacing Project 1B
2,100,000
Gas Tax Road Maintenance and
Rehabilitation Account Fund
(RMRA SB1)
Slurry Seal and Street Resurfacing - Street
Resurfacing Project 1B
650,000
City Road Infrastructure Fund Slurry Seal and Street Resurfacing - Street Resurfacing Project 1B
3,100,000
General Fund City Street Sidewalk Repairs 150,000
General Fund Southwest Lake Forest Crosswalk
Enhancement
300,000
General Fund Lake Forest Branding Entry Way Monuments 150,000 Foothill Circulation Phasing Plan
Capital Projects Fund (FCPP)
El Toro Raised Medians from Jeronimo to
Trabuco
940,000
General Fund Arterial Median Improvement Project 250,000 Lake Forest Traffic Mitigation
Fund (LFTM)
Alton Pkwy Irvine Blvd Intersection
Improvements
676,100
South Coast Air Quality
Management District Fund
(SCAQMD)
Bake Parkway and Rockfield Traffic Signal
Synchronization Program
370,000
Foothill Circulation Phasing Plan
Capital Projects Fund (FCPP)
Second left-turn Lanes in All Directions at the
Intersection of Los Alisos and Muirlands
3,300,000
Meadows Traffic Improvement
Program Fund (MTIP)
Meadows Traffic Improvements: Bake /
Toledo
2,180,000
Lake Forest Traffic Mitigation
Fund (LFTM)
Bake Pwky/Jeronimo Widening
Improvements
150,000
Foothill Circulation Phasing Plan
Capital Projects Fund (FCPP)
Widening/Realignment of Jeronimo at El Toro
Rd
405,000
Total 23,331,100
Community Development Block Grant (CDBG) Action Plan
Revenue Estimates $1,121,110
Operating Appropriations $841,110
Capital Improvement Plan
Appropriations
CDBG - ADA Ramps Phase 15 $230,000
CDBG - Audible Pedestrian
Signals - Phase 5 & 6 $50,000
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Item: 12
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ATTACHMENT 3
Item: 12
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2025 Strategic Plan Update
SP
#
Strategic
Plan
Goal
Final Name Status New
Initiative
Existing with
Modifications
Existing
Initiative/
Reprogramm
ed
Existing
Initiative with
Anticipated
Completion
FY 25
1 A PAVE 77: Proactive Arterial
Value Enhancements
On Track - Substantial
Progress (>50%) X
2 A Traffic Management Center Upcoming X
3 A Lake Forest Transportation
Mitigation (LFTM) Program
On Track - Substantial
Progress (>50%) X
4 A Meadows Traffic Mitigation
Program
On Track - Substantial
Progress (>50%) X
5 A Foothill Circulation Phasing
Plan
On Track - Substantial
Progress (>50%) X
6 A Traffic Signal Synchronization On Track - Substantial Progress (>50%) X
7 A
Traffic Operational
Improvement Study &
Improvement Project
On Track - Started
(<50%) X
8 A Arterial Median Improvement
Project
On Track - Substantial
Progress (>50%) X
9 A
Nature Park to Meadows
Development and County
Trail Connection
On Track - Started
(<50%) X
10 A General Plan Implementation On Track - Substantial Progress (>50%) X
11 A Traffic Circulation and
Mobility Projects
Some Disruption - In
Transition X
12 A
Analysis of Industrial and
Business Park Inventory and
Trends
On Track - In Transition X
13 A A. Whispering Hills
Entitlement Upcoming X
13 A
B. Whispering Hills Park Site
and Senior Affordable
Housing Project
Upcoming X
14 A Implement Development
Impact Fee Program Upcoming X
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2025 Strategic Plan Update