Lake Forest City Council
September 16, 2025

AGENDA

LAKE FOREST CITY COUNCIL
Regular Meeting of the City Council
Tuesday, September 16, 2025
Public Session 6:30 p.m.

City Council Chambers, 100 Civic Center Drive, Lake Forest, California Teleconference Location:

Mayor Pro Tem Pequeño will be teleconferencing from the following location:
23521 Swallow Lane, Lake Forest, CA 92630
Pursuant to California Government Code Section 54953(b)(3), any member of the public wishing to address the City Council directly pursuant to California Government Code Section 54954.3 may do so at each teleconference location, as listed above, at the time the item is considered.

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 September 16, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 1 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]
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 lèi 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 Dave Evans, Grace Community Church.

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country to be led by Daisy Troop #4457.

September 16, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 2 PRESENTATIONS (Item No. 1)

1. LAKE FOREST MAIN STREET DIGITAL PROGRAM GRANT AWARDEES RECOMMENDED ACTION: Recognize the grant awardees of the Lake Forest Main Street Digital program.

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 SEPTEMBER 2, 2025
RECOMMENDED ACTION: Approve as submitted.

4. CERTIFICATION OF WARRANT REGISTER
RECOMMENDED ACTION: Approve the warrant register in the amount of $ 8,073,633.40.

September 16, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 3

5. ORDINANCE REGARDING SOLID WASTE CONTINUATION RIGHTS
RECOMMENDED ACTION: Conduct a second reading of and adopt an Ordinance entitled: AN ORDINANCE OF THE CITY COUNCIL OF LAKE FOREST, CALIFORNIA AMENDING CHAPTER 16.03 OF TITLE 16 OF THE MUNICIPAL CODE REGARDING CONTINUATION RIGHTS.

6. NOTICE OF COMPLETION FOR CITYWIDE STREET NAME SIGNS
PROJECT (22S02)
RECOMMENDED ACTION: 1. Find that Bear Electrical Solutions has completed construction of the Citywide Street Name Signs Project (22S02).

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 the 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. FISCAL YEAR 2024-25 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) CONSOLIDATED ANNUAL PERFORMANCE EVALUATION

REPORT (CAPER)
RECOMMENDED ACTION: Adopt a Resolution entitled: A RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING THE FY 2024-25 CONSOLIDATED ANNUAL

PERFORMANCE EVALUATION REPORT FOR THE CITY'S COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM.

8. ANNUAL REVIEW OF DEVELOPMENT AGREEMENTS
September 16, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 4 RECOMMENDED ACTION: 1. Conduct the annual review of Development Agreements between the City and the following parties: a. USA Portola Properties, LLC (“Baldwin”); b. Lennar Homes (“Lennar”); c. Toll Brothers West, Inc. (“Toll Brothers”; 2. Find that Baldwin, Lennar, and Toll Brothers are each in good faith compliance with its respective Development Agreements.

9. RESOLUTION UPDATING A CREDIT CARD TRANSACTION FEE
RECOMMENDED ACTION: Adopt a Resolution Entitled: A RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA,

UPDATING A CREDIT CARD TRANSACTION FEE
DISCUSSION/ACTION ITEMS (Item No. 10)
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. EXTENSION OF AN URGENCY ORDINANCE REGARDING A

TEMPORARY MORATORIUM ON MASSAGE ESTABLISHMENTS
RECOMMENDED ACTION: Adopt an Urgency Ordinance entitled: AN

EXTENSION OF AN URGENCY ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF LAKE FOREST REGARDING A TEMPORARY
MORATORIUM ON MASSAGE ESTABLISHMENTS FOR 10 MONTHS
AND 15 DAYS PENDING STUDY AND ADOPTION OF REGULATORY

AND ZONING STANDARDS AND DETERMINING THE ORDINANCE TO
BE EXEMPT FROM CEQA.

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.

September 16, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 5 Council Member Cirbo:

Council Member Tettemer:

Council Member Yu:

Mayor Pro Tem Pequeño:

Mayor Voigts:

September 16, 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).

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 September 11, 2025.

Thy Merritt
Acting City Clerk
September 16, 2025 LAKE FOREST CITY COUNCIL AGENDA Page 7

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
DEPARTMENT: Economic Development
SUBJECT:

LAKE FOREST MAIN STREET DIGITAL PROGRAM GRANT AWARDEES
RECOMMENDED ACTION(S):

Recognize the grant awardees of the Lake Forest Main Street Digital program.

EXECUTIVE SUMMARY:

The Strategic Economic Investment Program (“SEIP”), approved by the City Council in February 2022, allocated $8,303,350 for economic support programs.

The 2023 Business/Resident Satisfaction Survey revealed that a majority of businesses seek improved marketing strategies and website updates to boost profitability. The 2023-2030 Strategic Plan introduced an initiative to reformulate the City's SEIP under Strategic Plan Initiative #23 - SEIP 2.0.

In February 2024, the City Council approved setting aside $50,000 from SEIP to fund potential Small Business Development Center (“SBDC”) programs. SBDC offers tailored services and consulting to foster small business growth and success.

Lake Forest’s Main Street Digital program, offered through the SBDC, is designed to help local businesses establish and boost their online presence.

Twenty Lake Forest businesses were deemed eligible to participate in the program. Participants received virtual training sessions and one-on-one consulting over a four-week period. Businesses that successfully completed the program were eligible for $1,000 grants to support digital advertising campaigns.

Table 1: 2025 Lake Forest Main Street Digital Grant Awardees Main Street Digital Grant Awardees
Aroma Pizza and Pasta
Bonjour Nails Lake Forest
Brizio Pizza

Main Street Digital Grant Awardees
FlairDev
Grisworld Home Care for Laguna Hills
Hawkins & Hawkins Tax Services
L&M Automotive
Little Something Sweet
Montessori Preschool & Tutoring Academy
Mountain Mike’s Pizza
Navis Pack & Ship
Our Place
Pristine Plumbing Inc.

Saha Pizza Inc.

Spark Lab Robotics and Coding Academy
Spectrum Specialties & Awards
Sunny Dumpling House
We Architects Group
Williams Construction Services
YogaSix Foothill Ranch
Staff recommend the City Council recognize these businesses for successfully completing the Lake Forest Main Street Digital program.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

Certificates of Recognition
Initiated By: Ian McKeever, Management Assistant
Submitted By: Adrian Grijalva, Economic Development and Housing Manager Approved By: Debra Rose, City Manager

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Aroma Pizza and Pasta
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Bonjour Nails
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Brizio Pizza
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
FlairDev
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Grisworld Home Care
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Hawkins & Hawkins Tax Services
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
L&M Automotive
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Little Something Sweet
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Montessori Preschool
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Mountain Mike’s Pizza
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Navis Pack & Ship
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Our Place
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Pristine Plumbing
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Saha Pizza Inc.

For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Spark Lab Robotics & Coding Academy
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Spectrum Specialties
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Sunny Dumpling House
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
We Architects Group
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Williams Construction Services
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
YogaSix Foothill Ranch
For successful completion of the
Lake Forest Main Street Digital Program
September 16, 2025
____________________________

SCOTT VOIGTS
Mayor
____________________________ ____________________________ ROBERT PEQUEÑO DOUG CIRBO Mayor Pro Tem Council Member ____________________________ ____________________________

MARK TETTEMER BENJAMIN YU Council Member Council Member

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
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

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, September 2, 2025, at the Lake Forest City Council Chambers, 100 Civic Center Drive, Lake Forest, California, was called to order at 6:30 p.m. with all members present.

ROLL CALL:

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

INVOCATION: The Invocation was provided by Ululani Cook, Church of Jesus Christ of Latter-day Saints.

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country was led by Boy Scout Troop #639.

REPORT FROM STUDENT LIAISON: A report was provided by Ethan Barro, Student Liaison from El Toro High School.

PRESENTATIONS: (Item Nos. 1 – 3)
MOTION: It was moved by Council Member Yu, seconded by Council Member Tettemer, to approve Presentation Item Nos. 1 – 3. The motion was carried by a vote of 5-0.

1. PROCLAMATION DECLARING SEPTEMBER 2025 AS SERVICE CLUBS MONTH

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

ACTION: A proclamation designating September 2025 as "Service Clubs Month" was presented.

September 2, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 2 of 5

2. PROCLAMATION DECLARING SEPTEMBER 2025 AS HUNGER ACTION MONTH

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

ACTION: A proclamation designating September 2025 as “Hunger Action Month” was presented.

3. PROCLAMATION DECLARING SEPTEMBER 2025 AS WORLD ALZHEIMER'S

AWARENESS MONTH

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

ACTION: A proclamation designating September 2025 as "World Alzheimer's Awareness Month" was presented.

PUBLIC COMMENTS:

Eileen McGervey expressed concerns about fire mitigation efforts at Serrano Creek Community Park.

Dorina Tan expressed concerns about fire mitigation efforts at Serrano Creek Community Park.

Cedric Campbell provided information on Scouting America and asked for the City to partner with Scouting America on recruiting efforts.

Jay Cost expressed concerns with the U.S. Immigration and Customs Enforcement activities in the City and broader concerns about the Trump Administration.

Brian McMillan expressed concerns with the City approving a moratorium on massage businesses.

Kathy Amason expressed concerns about fire mitigation efforts at Serrano Creek Community Park.

Andrea Alexander expressed concerns with the U.S. Immigration and Customs Enforcement activities in the City and broader concerns about the Trump Administration.

September 2, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 3 of 5

CONSENT CALENDAR: (Item Nos. 4 – 8)
MOTION: It was moved by Council Member Yu, seconded by Mayor Voigts, to approve Consent Calendar Item Nos. 4 – 8. The motion was carried by a vote of 5-0.

4. 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.

5. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON AUGUST 19, 2025

ACTION: The minutes were approved as submitted.

6. NATIONAL PREPAREDNESS MONTH

ACTION: September 2025 was designated as National Preparedness Month.

7. ACCEPTANCE OF TOLL BROTHERS IMPROVEMENTS AND RELEASE OF BONDS FOR TRACT 19124

ACTION: 1. The tract improvements and monumentation constructed by Toll Brothers West Inc., a Delaware corporation, for Tract 19124 were accepted as complete. 2. The City Clerk was authorized to release the Subdivision Faithful Performance and Subdivision Labor and Materials Bonds, both in the amount of $176,811.01, and the Subdivision Improvement Monumentation Bond in the amount of $59,250. 3. The City Clerk was authorized to release the Subdivision Improvement Warranty Bond in the amount of $17,681.10 one year after acceptance of the public improvements for Tract 19124 with the concurrence of the Director of Public Works/City Engineer.

8. NOTICE OF COMPLETION FOR NON-ARTERIAL STREETS ASPHALT REPAIRS ZONE D (24S01A)

ACTION: 1. LCR, Inc. was found to have completed construction of Non-Arterial Streets Asphalt Repairs Zone D (24S01A). 2. The Notice of Completion was approved and the Mayor was authorized to execute the document on behalf of the City. 3. City Clerk was authorized 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. Staff was authorized to release any unencumbered retention in accordance with California law.

September 2, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 4 of 5

DISCUSSION/ACTION ITEMS: (Item Nos. 9 – 10)

9. AWARD CONSTRUCTION CONTRACT FOR EL TORO ROAD CORRIDOR IMPROVEMENTS - A: JERONIMO ROAD WIDENING PROJECT (PW 2019-08) B: EL TORO ROAD MEDIAN IMPROVEMENTS (2020-07) C: TRABUCO ROAD MEDIAN IMPROVEMENTS (24S09B)

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

MOTION: It was moved by Council Member Tettemer, seconded by Council Member Yu, to: 1. Approve contract documents for construction of Jeronimo Road Widening (PW 2019-08), El Toro Road Median Improvements (PW 2020- 07), and Trabuco Road Median Improvements (24S09B). 2. Adopt a Resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING THE 2025-2032 CAPITAL
IMPROVEMENT PLAN; AMENDING APPROPRIATIONS FOR FISCAL YEAR 2025-26." 3. Award a contract in the amount of $8,364,464 to All American Asphalt, Inc. 4. Reject all other bids received and authorize return of the bid bonds upon receipt of the executed contract documents from All American Asphalt, Inc. 5. Authorize the Mayor to sign, and the City Clerk to attest the contract with All American Asphalt, Inc. The motion was carried by a vote of 5-

0. 10. ORDINANCE REGARDING SOLID WASTE CONTINUATION RIGHTS

City Manager Rose introduced this item and invited Administrative Services Manager Groves to provide a presentation. No public comment was offered.

Council questions were asked and answered.

MOTION: It was moved by Mayor Pro Tem Pequeño, seconded by Council Member Yu, to: 1. Conduct a first reading of an Ordinance entitled: AN

ORDINANCE OF THE CITY COUNCIL OF LAKE FOREST, CALIFORNIA AMENDING CHAPTER 16.03 OF TITLE 16 OF THE MUNICIPAL CODE REGARDING CONTINUATION RIGHTS. The motion was carried by a vote of 5-

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

CITY COUNCIL COMMENTS:

Council Member Cirbo:

Council Member Cirbo reported on his attendance at
the fire awareness pop-up event at Portola Park, the
Pickleball Haven event, and the Concert in the Park.

September 2, 2025 LAKE FOREST CITY COUNCIL MEETING MINUTES Page 5 of 5

Council Member Tettemer:

Council Member Tettemer reported on his attendance
at the Concert in the Park and the Chamber of
Commerce event in Mission Viejo.

Council Member Yu:

Council Member Yu thanked staff for their hard work
and had nothing further to report.

Mayor Pro Tem Pequeño:

Mayor Pro Tem Pequeño thanked staff for all their
hard work. He reported on his attendance at the
Chamber of Commerce event in Mission Viejo and the
Concert in the Park. He reminded everyone about a
Clean Lake Forest event on September 20 at Pittsford
Park.

Mayor Voigts:

Mayor Voigts reported on his attendance at the
Chamber of Commerce event in Mission Viejo and the
Concert in the Park.

ADJOURNMENT: The Regular Meeting of the City Council was adjourned at 7:29 p.m.

Respectfully submitted:

APPROVED:

THY MERRITT SCOTT VOIGTS

ACTING CITY CLERK MAYOR

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
DEPARTMENT: Finance
SUBJECT:

CERTIFICATION OF WARRANT REGISTER
RECOMMENDED ACTION(S):

Approve the warrant register in the amount of $ 8,073,633.40.

EXECUTIVE SUMMARY:

In accordance with Government Code Section 37202 and Lake Forest Municipal Code Chapter 3.16, the official below certifies that 1) the invoices of the warrant register have been properly reviewed and 2) funds are available for payment of the warrants.

FISCAL IMPACT:

The amount of the warrant register is $ 8,073,633.40.

ATTACHMENTS:

Warrant Register

Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager

Attachment

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
DEPARTMENT: City Clerk
SUBJECT:

ORDINANCE REGARDING SOLID WASTE CONTINUATION RIGHTS
RECOMMENDED ACTION(S):

Conduct a second reading of and adopt an Ordinance entitled: AN ORDINANCE

OF THE CITY COUNCIL OF LAKE FOREST, CALIFORNIA AMENDING CHAPTER 16.03 OF TITLE 16 OF THE MUNICIPAL CODE REGARDING CONTINUATION RIGHTS.

EXECUTIVE SUMMARY:

In July 2019, the City Council adopted Ordinance 320, which authorized eight haulers, including CR&R, Inc. (“CR&R”), to provide construction and demolition (“C&D”) waste services. On June 4, 2024, the City Council approved a Solid Waste Agreement (“Agreement”) with CR&R for the collection, processing, and disposal of waste and recycling for residents and businesses in the City effective July 1, 2025. Unlike the previous Franchise Agreement, the new Agreement authorizes CR&R as the exclusive hauler for C&D debris.

The California Public Resources Code 49520 gives continuation rights to haulers for a period of five years following the commencement of an exclusive C&D agreement. This ordinance limits haulers from expanding their customer base or soliciting new business during the 5-year continuation period. Staff recommend conducting the second reading of and adopt the ordinance.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

Ordinance Regarding Solid Waste
Submitted By: Thy Merritt, Assistant City Clerk
Approved By: Debra Rose, City Manager

ATTACHMENT

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF LAKE FOREST,
CALIFORNIA AMENDING CHAPTER 16.03 OF TITLE 16 OF THE

MUNICIPAL CODE REGARDING CONTINUATION RIGHTS
WHEREAS, the City of Lake Forest (“City”) has historically awarded franchises for the collection of solid waste; and
WHEREAS, section 49520 of the California Public Resources Code provides that certain existing solid waste enterprises may continue to provide their services to the City for a period of up to five years after notification of the City’s transition to an exclusive franchise, contract, license, or permit; and WHEREAS, section 49520 limits the solid waste enterprise’s continued service to “those services” previously authorized by franchise, contract, license, or permit before the notification was provided; and
WHEREAS, courts have held that a city may adopt an ordinance to prevent existing solid waste enterprises from soliciting new business or expanding their customer base during the five year period (Valley Vista Services, Inc. v. City of Monterey Park (2004) 118 Cal.App.4th 881); and WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

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

SECTION 1. The foregoing recitals are true and correct and are incorporated herein as part of this Ordinance.

SECTION 2. Chapter 16.03, section 16.03.025 of the Lake Forest Municipal Code is added to read as follows:
“Sec. 16.03.025. Franchisee or Permittee with Continuation Rights.

No franchisee, permittee, or licensee continuing service pursuant to Public Resources Code section 49520 shall expand its customer base or solicit new business during the five-year period following notification of the City’s transition to an exclusive franchise, permit, contract, or license.” SECTION 3. 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 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 4. 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 5. 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

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

CITY COUNCIL AGENDA REPORT
MEETING DATE: 09/16/2025
DEPARTMENT: Public Works
SUBJECT:

NOTICE OF COMPLETION FOR CITYWIDE STREET NAME SIGNS PROJECT (22S02)
RECOMMENDED ACTION(S):

1. Find that Bear Electrical Solutions has completed construction of the Citywide Street Name Signs Project (22S02).

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 the 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 November 7, 2023, the City Council awarded a construction contract to Bear Electrical Solutions in the amount of $816,998 for the Citywide Street Name Signs Project. The scope of work included the fabrication, installation, and GIS- based inventory tracking of over 2,600 new street name signs, which included the replacement of approximately 2,300 standard street name signs and 345 internally illuminated street name signs mounted on overhead traffic signal arms.

Following review and approval of required submittals and the completion of contractor training on the City's GIS system, construction officially began on June 26, 2024. During the project, Contract Change Orders #1, #2, and #3 were approved by staff to extend the project schedule by a total of 68 working days.

These extensions were granted at no additional cost and were necessary due to unforeseen delays in manufacturing and supply chain disruptions caused by regional wildfires and high winds, which impacted the production and installation schedule. The Project was substantially completed on June 30, 2025, and was within the Contract amount. After final inspection, determination of final

2 7
7 6
quantities, and progress payments, the Project is 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 California law. Sufficient funds are available in the 2025-27 Capital Improvement Plan Budget for the recommended action.

BACKGROUND:

Strategic Plan Initiative #14 included the replacement of the City’s street name signs with a total budget of $300,000 for Fiscal Years 2021-22 and 2022-23. The initiative did not originally include the internally illuminated street name signs mounted on the overhead traffic signal arms.

On December 6, 2022, the City Council approved the design of the neighborhood street name signs and directed staff to include the replacement of the traffic signal internally illuminated street name signs. The total estimated project cost for the street name signs and traffic signal street name signs was $880,000. The City Council directed staff to solicit bids for both street name sign types and to request additional funding based upon the bid results at the time of contract award.

On June 20, 2023, the City Council updated City’s Strategic Plan, which revised the numbering scheme for the Strategic Plan initiatives. As a result, the Strategic Plan initiative number for this project changed from #14 to #24 while the budget and project scope remained the same from the previous City Council approval.

On November 7, 2023, the City Council awarded a construction contract to Bear Electrical Solutions in the amount of $816,998 for the Citywide Street Name Sign Project. Following the staff’s review of submittals for over 2,600 signs and completion of contractor training on the City’s GIS system for inventory tracking, the project officially began on June 26, 2024.

During the duration of the project, Contract Change Orders #1, #2, and #3 were approved by staff, extending the contract timeline by a total of 68 working days.

These extensions did not result in any additional cost to the contract. The change orders were necessary to address significant delays in the supply chain and sign manufacturing, caused by regional wildfires and unusually high winds that impacted the production and installation of the signs.

2 7
7 6
DISCUSSION:

Bear Electrical Solutions completed the replacement of approximately 2,300 street name signs and 345 internally illuminated street name signs that are mounted on the overhead traffic signal arms on June 30, 2025. Staff conducted the final inspection to ensure the Project’s completion per 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 the release of 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.

FISCAL IMPACT:

The recommended action will deem the Project complete, authorize the Mayor and City Clerk to execute the Notice of Completion, and permit staff to release any unencumbered retention in accordance with California law. Sufficient funds are available in the 2025-27 Capital Improvement Plan Budget to support this action.

ATTACHMENTS:

Notice of Completion – Citywide Street Name Signs Project Initiated By: Tran Tran, Traffic Engineering Manager
Submitted By: Douglas E. Erdman, P.E., Acting Director of Public Works/City Engineer
Approved By: Debra Rose, City Manager

Attachment

RECOR

DING REQUESTED BY
AND MAIL TO:

Thy Merritt
City Clerk
City of Lake Forest
100 Civic Center Dr
Lake Forest, California, 92630 Fee E
xempt – Gov’t Code §27383
NO

TICE OF COMPLETION
(C.C.C. 9204 - PUBLIC WORKS)
NO
TICE 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 Citywide Street Name Signs Project (22S02 ) and accepted by the awarding authority upon the date hereof.

2. Date of completion: September 16, 2025.

3. Descripti
on of work performed: Remove and replace street name signs.

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: Citywide

6. The contractor was: Bear Electrical Solutions
Dat
ed ____________________________________ __________________________________________ Scott Voigts, Mayor
City of Lake Forest
ATTEST:
________
_________________________________
Thy Merritt, Acting City Clerk
VERI

FICATION
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.

Ex
ecuted at Lake Forest, California, on this ____ day of _________________, 2025. ________
__________________________________
Scott Voigts, Mayor
City of Lake Forest
ATTEST:
________
__________________________________
Thy Merritt, Acting City Clerk

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
DEPARTMENT: City Manager
SUBJECT:

FISCAL YEAR 2024-25 COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT (CAPER)
RECOMMENDED ACTION(S):

Adopt a Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING THE FY 2024-25

CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT FOR
THE CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM.

EXECUTIVE SUMMARY:

The Community Development Block Grant ("CDBG") Consolidated Plan ("Consolidated Plan") is a five-year strategic plan that identifies priority housing and community needs and the City's activities to be carried out with CDBG funds to address these needs. Each year, the City Council adopts a CDBG expenditure plan known as the Annual Action Plan (Attachment 1). The Annual Action Plan identifies the specific programs and projects funded with CDBG resources that address priority community needs.

As a CDBG recipient, the City is required to submit annually a Consolidated Annual Performance Evaluation Report ("CAPER") to the U.S. Department of Housing and Urban Development ("HUD"). The CAPER (Attachment 2) is the City's year-end performance report that describes the City's progress and accomplishments utilizing its CDBG grant.

In Fiscal Year ("FY") 2024-25, the City received a CDBG grant totaling $518,153.

In addition, the City had prior-year unexpended funds ($627,778.62) and received $360,598.38 in program income generated from the repayment of housing rehabilitation loans and the purchase and sale of an affordable condo unit. A total of $1,506,530 in CDBG funds were available for expenditure in FY 2024-25. These funds were allocated to public service grants, housing activities, paint grants, public facility improvements, and program administration.

Approval of the CAPER has no fiscal impact. Upon the City Council's approval, the City will submit the CAPER to HUD by the September 28, 2025, deadline.

Staff recommend the City Council adopt the attached resolution approving the FY 2024-25 CDBG CAPER (Attachment 3) and authorize staff to submit the report to HUD.

BACKGROUND:

The City has been a recipient of CDBG funding since 1994. Through FY 2024- 25, the City has received a total of $14,174,873 in CDBG funding. CDBG is a formula grant allocated to local governments to develop viable urban communities by providing or supporting decent housing, a suitable living environment, and expanding economic opportunities principally for low- and moderate-income persons. These funds have been utilized for various housing, neighborhood improvement, and social service programs that benefit the City's low- to moderate-income residents. Specific projects initiated or completed in FY 2024-25 include neighborhood park improvements, the Housing Rehabilitation Loan and Neighborhood Paint Grant programs, the Audible Pedestrian Pushbutton Program, and various public services programs.

To receive the annual grant, the City must complete the following:

1. Adopt a Consolidated Plan.

The Consolidated Plan sets goals and objectives guiding the City's CDBG funding priorities over five years. The City Council adopted the 2020-2024 Consolidated Plan on June 16, 2020. The Consolidated Plan objectives are summarized below:
• Rehabilitate the City's existing single-family housing stock, including mobile homes;
• Conserve the existing supply of affordable housing;
• Provide supportive housing and services for the homeless and those at risk of becoming homeless;
• Provide needed community services and infrastructure improvements benefiting low and moderate-income persons and those with special needs.

2. Submit an Annual Action Plan to HUD each year.

The Annual Action Plan outlines how the City will spend its CDBG funds to address the goals and objectives in the City's Consolidated Plan. The City Council adopted the FY 2024-25 Annual Action Plan (Year 5 of the five-year Consolidated Plan cycle) on May 7, 2024, and subsequently submitted it to HUD by the May 15, 2024, deadline.

3. Submit a CAPER within 90 days from the close of a jurisdiction's program year (September 28 of each year).

The CAPER provides a progress report regarding the most recently completed fiscal year. The report details how the CDBG grant assisted the City in meeting the goals and objectives outlined in the 2020-2024 Consolidated Plan.

DISCUSSION:

As required for the CDBG program, the City established objectives for meeting its housing and other community needs in the 2020-2024 Consolidated Plan. The CAPER's purpose is to document the City's CDBG program progress and accomplishments in FY 2024-25, which is the fourth reporting year for the 2020- 2024 Consolidated Plan. The City's annual achievements identified in the CAPER are linked to the Consolidated Plan's five- year goals.

Revenues and Expenditures
CDBG revenues received by the City in FY 2024-25 include the grant, and program income in the form of sale proceeds from the purchase and sale of an affordable condo unit and housing rehabilitation loan repayments. The City also utilized unspent prior year funds. A summary of FY 2024-25 revenues and expenditures reported in the CAPER is provided in Tables 1 and 2 below:

Table 1: FY 2024-25 CDBG Funds Summary
FY 2024-25 ALLOCATION: $518,153.00
PRIOR YEAR UNSPENT FUNDS: $627,778.62
PROGRAM INCOME: $360,598.38
TOTAL CDBG FUNDS: $1,506,530.00
Table 2: FY 2024-25 CDBG Expenditure Summary
AFFORDABLE HOUSING PURCHASE & SALE: $485,729.17

HOUSING REHABILITATION LOAN & NEIGHBORHOOD
PRIDE PAINT GRANT PROGRAMS:
$315,070.63
CAPITAL IMPROVEMENT PROJECTS: $182,004.25
PROGRAM ADMINISTRATION: $110,106.46
PUBLIC SERVICE GRANTS: $72,920
TOTAL CDBG FUNDS: $1,165,830.51
Completed and Ongoing Activities

The activities undertaken during FY 2024-25 are consistent with the Annual Action Plan the City Council approved in May 2024. Specific CDBG-funded program accomplishments are summarized in Table 1 of the Draft FY 2024-25 CAPER (Attachment 2). A summary of completed activities follows:
• Public Service Grants: CDBG-funded assistance in the amount of $72,920 was provided to benefit 2,954 individuals through various public services.

Six (6) nonprofit organizations provided services to eligible Lake Forest residents. Services included food pantries, primary health care services, case management services for seniors, and homeless prevention for homeless and those at risk of becoming homeless.
• Housing Rehabilitation: Twelve (12) income-qualified homeowners received loans and completed needed home repairs and improvements (e.g., roofing, plumbing, electrical, and flooring) through the City's Housing Rehabilitation Loan Program. Expenditure for this activity totaled $291,190.63.
• Neighborhood Pride Paint Grants: Grant funds were provided to qualified homeowners to assist with painting the exterior of their residences. Three (3) homeowners were assisted during the reporting period with a total of $23,380 of CDBG funding plus $500 worth of retention for a project completed during the previous reporting cycle.
• Affordable Housing: A significant portion of the City's CDBG funding was allocated to expand the City's supply of affordable housing, specifically $485,729.17 was expended. During the reporting period, the City completed a Purchase and Sale Agreement with South County Outreach on an affordable condo unit, which benefited one (1) lower income household at risk of homelessness.
• Public Facility Improvements: The ADA Accessible Pedestrian Signals (“APS”) Projects was completed. CDBG funding utilized for this project during the reporting period totaled $177,800 and benefitted 5,575 disabled residents.
• Program Administration: Staff administered the CDBG program consistent with HUD guidelines, including the following activities: Preparation and implementation of the 2024-2025 Annual Action Plan, including financial grant management, sub-recipient program monitoring, environmental reviews, CAPER preparation, and management of HUD's Integrated Disbursement and Information System ("IDIS") for activity and financial reporting. The City is allowed to allocate up to 20 percent of the annual grant funds for program administration plus up to 20 percent of any

Program Income generated from the purchase and sale of the affordable condo unit. FY 2024-25 expenditures for this activity totaled $110,106.46.

As HUD regulations require, the City published a notice inviting public review of the CAPER and comments. The required 15-day review period began on August 28, 2025, and concludes on September 16, 2025. As of the writing of this report, the City has not received public comments. Staff recommend the City Council adopt the attached resolution (Attachment 3) approving the FY 2024-25 CDBG CAPER and authorize staff to submit the report to HUD.

FISCAL IMPACT:

The recommended action has no fiscal impact.

ATTACHMENTS:

1. FY 2024-25 CDBG Annual Action Plan

2. Draft FY 2024-25 CDBG CAPER

3. Draft City Council Resolution Approving FY 2024-25 CDBG CAPER Initiated By: Adrian Grijalva, Economic Development/Housing Manager Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager

ATTACHMENT 1

2024-2025

May 7, 2024
CDBG
Annual
Action
Plan

05/07/24 Annual Action Plan
2024-2025
i
OMB Control No: 2506-0117 (exp. 07/31/2015)

TABLE OF CONTENTS

Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)................................ ................................ ...... 1 PR-05 Lead & Responsible Agencies – 91.200(b) ................................ ................................ .................. 3 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................ ................................ ............... 4 AP-12 Participation – 91.105, 91.200(c) ................................ ................................ ............................. 11 Expected Resources
AP-15 Expected Resources – 91.220(c) (1, 2) ................................ ................................ ...................... 12 Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e ) ................................ .......................... 15 AP-35 Projects – 91.220(d) ................................ ................................ ................................ ................. 17 AP-38 Projects Summary................................ ................................ ................................ .................... 18 AP-50 Geographic Distribution – 91.220(f) ................................ ................................ ......................... 25 Affordable Housing
AP-55 Affordable Housing – 91.220(g) ................................ ................................ ............................... 26 AP-60 Public Housing – 91.220(h) ................................ ................................ ................................ ...... 27 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ................................ ......................... 28 AP-75 Barriers to affordable housing – 91.220(j) ................................ ................................ ................ 30 AP-85 Other Actions – 91.220(k) ................................ ................................ ................................ ........ 31 Program Specific Requirements ................................ ................................ ................................ ............. 34

Attachments:

1. Summary of Prior Accomplishments

2. Public Notices and Summary of Public Comments

3. CDBG Low-Moderate Income Areas

4. Analysis of Impediments to Fair Housing Plan
SF-424/SF-424D and Certifications

05/07/24 Annual Action Plan
2024-2025
1 OMB Control No: 2506-0117 (exp. 07/31/2015)
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The 2024-2025 Annual Action Plan for the City of Lake Forest satisfies the requirements to receive Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). The CDBG program was created by the Housing and Community Development Act (HCDA) of 1974. The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low- and moderate-income.

Regulations governing the CDBG program require that each activity undertaken with CDBG funds must meet one of the three national objectives:
• Benefit low- and moderate-income persons
• Aid in the prevention or elimination of slums and blight or • Meet a community development need having a particular urgency (i.e., federally declared disaster)
As a recipient of CDBG funds, the City must prepare a five-year strategic plan that identifies housing and community needs, prioritizes these needs, and develops a strategic plan to address priority needs. This document is called the Consolidated Plan. The City’s current Consolidated Plan covers the fiscal years of 2020-21 to 2024-25. On an annual basis, the City prepares an expenditure plan that identifies the specific activities it will undertake with its annual CDBG allocation to meet the priority needs identified in the Consolidated Plan. Fiscal Year (FY) 2024-25 is the fifth year of the current Consolidated Plan cycle.

HUD has notified the City that it will receive $518,153 in CDBG funds for FY 2024-25 – approximately

0.5% less than the City’s current year CDBG allocation. An additional $90,600 in prior year uncommitted funds and program income received during the year will also be available for programming.

2. Summarize the objectives and outcomes identified in the Plan The City of Lake Forest City Council approved the 2020-2024 Consolidated Plan in June 2020. The following Consolidated Plan objectives and outcomes were adopted. Corresponding annual accomplishment goals for FY 2024-25 are also listed below:
• Infrastructure and Facility Improvements: Improve public infrastructure and facilities that benefit 7,500 low- and moderate-income residents. FY 2024-25 Goal: Install APS Pushbuttons at 18 locations
• Affordable Housing: Improve or expand the supply of housing affordable to 40 lower-income households. FY 2024-25 Goal: Rehab 9 housing units

05/07/24 Annual Action Plan
2024-2025
2 OMB Control No: 2506-0117 (exp. 07/31/2015)
• Public Services: Provide access to public social services for 8,000 low- and moderate-income persons. FY 2024-25 Goal: benefit 2,519 low- and moderate-income residents • Homeless Continuum of Care: Provide access to housing and supportive services for 2,680 persons at risk of becoming homeless or who are homeless. FY 2024-25 Goal: benefit 738 low- and moderate-income residents
• Administration and Planning: Provide CDBG program oversight and coordination and fair housing services to 450 households. FY 2024-25 Goal: 95 households residents assisted (fair housing services)

3. Evaluation of past performance
FY 2023-24 (the current fiscal year) is the fourth year of the City’s 2020-2024 Consolidated Plan cycle.

Most planned activities will be completed by June 30, 2024. A table summarizing the City’s Consolidated Plan goals over three completed years (FY 2020-21 through FY 2022-23) is provided as Attachment 1.

4. Summary of Citizen Participation Process and Consultation Process City staff encouraged residents and local and regional organizations to review the 2024–2025 Annual Action Plan. There were several opportunities for City residents and agencies/organizations to offer input into the Consolidated Plan process, as noted below:
• A draft of the Consolidated Plan was made available for a 30-day public comment period from April 5 to May 6, 2024.
• The City Council held a public hearing on May 7, 2024, to obtain public comments regarding the Annual Action Plan.

5. Summary of public comments
A summary of comments received can be found in Attachment 2.

6. Summary of comments or views not accepted and the reasons for not accepting them A summary of comments received can be found in Attachment 2.

7. Summary
The Consolidated Plan is a strategic plan that utilizes data and public input to determine priority housing and community needs. The Annual Action Plan is the expenditure plan for using CDBG funds to address identified priorities. The City’s overall objective for the CDBG program is to create a viable community by providing decent housing, a suitable living environment, and economic opportunities, principally for low- and moderate-income persons. To accomplish these objectives, the City of Lake Forest will utilize $608,753 in CDBG funds and program income during FY 2024-25 to carry out various eligible activities.

05/07/24 Annual Action Plan
2024-2025
3 OMB Control No: 2506-0117 (exp. 07/31/2015)
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Table 1 – Responsible Agencies
Agency Role Name Department/Agency
CDBG Administrator LAKE FOREST City Manager’s Office

Narrative (optional)
The City Manager’s office oversees the City’s CDBG program, including preparing the Consolidated Plan, Annual Action Plans, and year-end performance reports (Consolidated Annual Performance and Evaluation Report or CAPER).

Consolidated Plan Public Contact Information
Adrian Grijalva, Housing and Economic Development Manager 100 Civic Center Drive, Lake Forest, CA 92630 (949) 282-5213 / [email protected]

05/07/24 Annual Action Plan
2024-2025
4 OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The consolidated planning process requires jurisdictions to contact and consult with other public and private agencies when developing the Consolidated Plan. The plan must include a summary of the consultation process, including identifying the agencies that participated in the process. Jurisdictions must also summarize their efforts to enhance coordination between public and private agencies.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
To enhance coordination between public and assisted housing providers and private and governmental health, mental health, and service agencies, the City of Lake Forest took the following actions:
• The City Manager’s Department, acting as the lead agency, met with various City departments and consulted with outside agencies to gain input on annual needs, enhance coordination of services, prevent service duplication, and resolve issues within the interagency institutional structure.
• The City of Lake Forest collaborates with the County to obtain input on assisted housing programs. Specifically, the City works with and supports the Orange County Housing Authority’s (OCHA) administration of the Housing Choice Voucher Program, which provides housing subsidies to qualified lower-income Lake Forest renters. • To strengthen the private sector's housing delivery system, the City encourages private housing developers to include affordable units in multi-family housing developments within Lake Forest.

The City will also continue cooperating with local nonprofit housing organizations to identify and provide housing opportunities for lower-income households. • Orange County has a broad spectrum of public and nonprofit social service providers that address the needs of the region’s residents. Through the annual CDBG public service grant funding process, City staff can ascertain the services City residents require (e.g., senior services, youth services, services for the near homeless and those already homeless) and develop partnerships with local agencies to ensure the delivery of quality services. • The City of Lake Forest's economic development program coordinates business activities and employment programs with community organizations such as the Lake Forest Chamber of Commerce and the OC Workforce & Economic Development.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

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2024-2025
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Coordinating Orange County’s Continuum of Care (OC-CoC) planning process is led by 2-1-1 Orange County and the OC Community Services Department. This nonprofit-public partnership helps ensure comprehensive, regional coordination of efforts and resources to reduce the number of homeless and persons at risk of homelessness throughout Orange County. This partnership serves as the regional coordinator of the year-round CoC planning process and regional homeless system of care.

The City supports the CoC planning process by providing information regarding the activities it will fund to address local homeless issues. The OC-CoC used this information to prepare the regional application to HUD for Homeless Assistance Grant funds. City staff will also expedite certifications of consistency with the Consolidated Plan and other forms of support for the OC-CoC. Additionally, the City supports and participates in the biennial Point-In-Time Survey of the region’s homeless.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City does not receive Emergency Solutions Grant (ESG) funds; therefore, it does not help the OC-CoC determine ESG allocations, evaluate the outcomes, or develop policies and procedures for administering the regional Homeless Management Information System (HMIS).

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities (see Table 2):

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2024-2025
6 OMB Control No: 2506-0117 (exp. 07/31/2015)
Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Orange County Housing Authority Agency/Group/Organization Type PHA
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided data regarding households receiving HUD rental assistance and households on the waitlist for housing assistance 2 Agency/Group/Organization 211 Orange County
Agency/Group/Organization Type Regional organization
Planning organization
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Homeless Management Information System (HMIS)
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided data regarding regional homeless, housing/service gaps for the homeless, and HMIS management
3 Agency/Group/Organization Fair Housing Council of Orange County Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by Consultation? Impediments to Fair Housing

05/07/24 Annual Action Plan
2024-2025
7 OMB Control No: 2506-0117 (exp. 07/31/2015)
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided data regarding fair housing issues in the community and input on impediments to fair housing, and assisted in developing action steps to address impediments to fair housing
4 Agency/Group/Organization Age Well Senior Services
Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided input regarding the housing and service needs of seniors, including homebound and frail seniors
5 Agency/Group/Organization Families Forward
Agency/Group/Organization Type Services - Housing
Services-Homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Families with children Homelessness Strategy
Anti-poverty Strategy
Needs of Low/Mod persons
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided input regarding housing and service needs of homeless families and families at risk of becoming homeless
6 Agency/Group/Organization Family Assistance Ministry
Agency/Group/Organization Type Services - Housing
Services-Homeless

05/07/24 Annual Action Plan
2024-2025
8 OMB Control No: 2506-0117 (exp. 07/31/2015)
What section of the Plan was addressed by Consultation? Homeless Needs - Families with children Homelessness Strategy
Anti-poverty Strategy
Needs of Low/Mod persons
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided input regarding housing and service needs of homeless households and households at risk of becoming homeless
7 Agency/Group/Organization South County Outreach
Agency/Group/Organization Type Services - Housing
Services-Homeless
What section of the Plan was addressed by Consultation? Anti-poverty Strategy Needs of Low/Mod persons
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided input regarding the needs of lower-income households, specifically individuals/households at risk of becoming homeless 8 Agency/Group/Organization Camino Health Center
Agency/Group/Organization Type Services-Health
What section of the Plan was addressed by Consultation? Anti-poverty Strategy Needs of Low/Mod persons
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided input regarding medical/dental service needs of the community, including homeless individuals
9 Agency/Group/Organization Alzheimer’s Orange County
Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities

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What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided input regarding the service needs of seniors with Alzheimer’s and other forms of dementia and disabilities 10 Agency/Group/Organization County of Orange
Agency/Group/Organization Type Other government - County What section of the Plan was addressed by Consultation? Regional program information Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Various county departments provided information regarding public health, public safety, and housing programs
11 Agency/Group/Organization Vocational Visions
Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Economic development
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided input regarding the needs of adults with developmental disabilities

Identify any Agency Types not consulted and provide rationale for not consulting The City consulted with various agencies serving Lake Forest residents and the region. No agency types were explicitly excluded from the consultation process.

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Other local/regional/state/federal planning efforts considered when preparing the Plan Table 3 – Other local / regional / federal planning efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care 211-Orange County Addresses issues pertaining to homelessness, including the 2022 Homeless Point-in-Time Survey
5-Year Plan & 1-Year Public Housing
Authority (PHA) Plan Orange County Housing Authority Agency plans and policies related to providing rental assistance for very low-income households
Housing Element City of Lake Forest City policies and goals for the preservation and expansion of the City’s housing stock
Capital Improvement Budget City of Lake Forest Includes a multi-year plan for the use of CDBG funds for capital projects
Analysis of Impediments to Fair Housing Orange County HUD Grantee Cities and the County of Orange
The countywide document identifies fair housing
impediments within participating cities and outlines
a plan to address issues

Narrative (optional)

05/07/24 Annual Action Plan
2024-2025
11 OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting

The City of Lake Forest offered several opportunities for participation and comment throughout the Annual Action Plan preparation process. The City’s Citizen Participation Plan outlines the City’s process to obtain public participation in developing the Annual Action Plan (AAP) and other facets of the CDBG Program. Action steps include a 30-day public review of the Action Plan and a public hearing before the City Council. The public notice and a summary of public comments are provided in Attachment 2.

Citizen Participation Outreach
Table 4 – Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/attendance
Summary of
Comments
received
Summary of
comments not
accepted and reasons
URL (If applicable)
1 Internet
Outreach Nonprofits
Notification of
availability of CDBG
funding for FY 24-25
NA NA
www.lakeforestca.gov/
en/departments/econo
mic-
development/housing/
community-
development-block-
grant
2 Newspaper Ad
Non-
targeted/broad
community
Notice regarding the 30-
day public review period
(4/5/24 to 5/6/24) and
public hearing
See
Attachment 2 None NA
3 Public Hearing
Non-
targeted/broad
community
5/7/24 City Council
public hearing to review
the draft Action Plan and
receive public comment
See
Attachment 2 None NA

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2024-2025
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Expected Resources
AP-15 Expected Resources – 91.220(c) (1, 2)
Introduction
Fluctuations in annual CDBG allocations make it challenging to determine anticipated resources for five years; however, based on recent allocations, the City expects to receive approximately $500,000 annually in CDBG funding for a five-year total of $2,500,000. The City uses CDBG funds for housing preservation activities, public improvements, public services, and administrative costs.

HUD has notified the City that it will receive $518,153 in CDBG funds for FY 2024-25 – approximately 0.5% less than the City’s current year CDBG allocation. Additional resources for the year include $90,600 in prior year uncommitted funds and program income (i.e., Revolving Loan funds) received during the fiscal year generated by the repayment of previously funded housing rehabilitation loans. The City anticipates that the County of Orange will continue to administer the federal rental assistance program in Lake Forest, assisting approximately 165 households per year. The City will continue its efforts to leverage CDBG funds with other federal, state, and local funds.

Anticipated Resources
Table 5 - Expected Resources – Priority Table
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 5 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG Public-
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 518,153 0 90,600 608,753 0
CDBG annual allocation,
prior year funds, and
projected loan
repayments

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Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City has identified other resources that may be available to carry out activities that address the goals of the Consolidated Plan:
• OCHA reports that as of January 2024, 166 Lake Forest households receive rental assistance. The City anticipates that OCHA will provide rental assistance to 165 Lake Forest households during FY 2024-25. • The City may use local or state resources to fund homeless outreach activities during FY 2024-25. • The City does not have an inclusionary housing program; however, the Housing Element indicates that the City will encourage developers to include a minimum of 15 percent affordable units in their housing projects. Alternatively, developers may pay an in-lieu fee instead of constructing affordable units. The City will negotiate an agreement with a developer to ensure units are built or collect the in-lieu fee.

CDBG does not require matching funds.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City of Lake Forest Housing Authority owned assets formerly held by the Lake Forest Redevelopment Agency. The Housing Authority sold a tax-defaulted vacant parcel purchased from the County of Orange to the City on August 16, 2022 (the “Mamie Thomas Parcel”). The City Council approved the property purchase via a Quitclaim Deed and a Certificate of Acceptance. It authorized the City Manager to transfer the purchase price of $310,000 from the City's General Fund to the Housing Authority's Housing Asset Fund. The Housing Authority will use these funds to support future affordable housing activities.

In 2020, the City approved the construction of a 71-unit apartment project for seniors earning less than 60% of the area median income. The “Mountain View” project is located at 24551 Raymond Way. Eight units serve as supportive housing for formerly homeless seniors with special needs. The project is completed/open. A second project, Portola Senior Apartments (931 Portola Oaks Drive), was also completed and is open.

The project includes 57 one-bedroom senior apartment units that are affordable for seniors aged 62 plus earning 50% or less of the area median income. The project offers amenities and support services to help increase senior residents' financial and housing stability. A third project, The Meadows Seniors Apartments, is a 65-unit active adult community available to seniors 62 years and older. The affordable apartment community

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is currently under construction, with an anticipated opening date in late 2024. Lastly, in March 2024, the City entered into an Exclusive Negotiation Agreement with National CORE for another affordable housing project. The City has approximately $3.35 million to invest in the project.

Discussion
Funding resources to implement the City’s Consolidated Plan are limited. The City anticipates that fluctuations in CDBG funding will continue.

HUD has begun to invest additional resources into housing assistance vouchers and certificates, and OCHA has aggressively pursued these new resources. The City will support OCHA’s efforts to secure new rental assistance resources. As other resources become available (e.g., City of Lake Forest Housing Authority, general fund, or state funds), the City will explore opportunities to expend these funds to support the goals and objectives of the Consolidated Plan.

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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e ) Goals Summary Information
Table 6 – Goals Summary
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Infrastructure and
Facility
Improvements
2024 2025 Non-Housing
Community
Development
Citywide Public
Improvements
CDBG:
$175,000
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: Persons Assisted 4,774
2 Housing
Preservation
2024 2025 Affordable Housing Citywide Affordable Housing CDBG:
$252,453
Homeowner Housing Rehabilitated:
9 Household Housing Unit
3 Public Social
Services
2024 2025 Non-Homeless
Special Needs
Low & Moderate-
income Households
Citywide Public Services CDBG:
$26,080
Public service activities other than
Low/Moderate Income Housing
Benefit: 2,519 Persons Assisted
4 Homeless
Continuum of Care
2024 2025 Homeless Citywide Homeless Support
Services and
Housing
CDBG:
$51,620
Public service activities other than
Low/Moderate Income Housing
Benefit: 692 Persons Assisted

Homelessness Prevention:
46 Persons Assisted
5 Program
Administration
2024 2025 Administration Citywide Administration and
Planning
CDBG:
$103,600
Other: 95 Other

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Goal Descriptions
Table 7 – Goal Descriptions
1 Goal Name Infrastructure and Facility Improvements
Goal
Description
Improve and expand public infrastructure and facilities that benefit low- and moderate-income neighborhoods and residents
2 Goal Name Housing Preservation
Goal
Description
Loans and grants to improve owner-occupied housing or expand the supply of housing affordable to lower-income households
3 Goal Name Public Social Services
Goal
Description
Provide or improve access to public social services for low- and moderate-income persons and persons with special needs
4 Goal Name Homeless Continuum of Care
Goal
Description
A continuum of supportive and housing services for the homeless and households at risk of homelessness 5 Goal Name CDBG Program Administration
Goal
Description
CDBG program oversight and coordination, including fair housing services

Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b):

The City is not a participating jurisdiction in the HUD HOME program; however, an estimated nine (9) households will be assisted with CDBG- funded housing rehabilitation during FY 2024-25.

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2024-2025
17 OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-35 Projects – 91.220(d)
Introduction
The activities to be undertaken during FY 2024-25 are summarized below. Most activities identified will be completed by June 30, 2025. Due to the delay in approving the federal 2024 budget, the City Council approved the FY 2024-2025 Action Plan with a provision that CDBG funding for activities will be increased or decreased by a percentage based on the final 2024 CDBG grant. Funding for the activities listed below has been adjusted accordingly.

Table 8 – Project Information
# Project Name
1 CDBG Administration
2 Housing Rehabilitation Loans
3 Paint Program Grants
4 Age Well Senior Services
5 Alzheimer’s Orange County
6 Camino Health Center
7 Fair Housing Council of OC
8 Families Forward
9 Family Assistance Ministry
10 South County Outreach
11 Accessible Pedestrian Signal (APS) Push Buttons

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City recognizes that special needs populations (i.e., seniors, disabled, and households with extremely low-income) are more likely to become homeless because they have limited income or other issues that require supportive housing or services; therefore, the City considers supportive services a high priority.

The City anticipates that the greatest obstacle to meeting the underserved needs of these special needs populations will be a lack of financial resources for both supportive services and housing. A common need reported by service providers is affordable housing. Increasing rents and competition for limited Housing Choice Vouchers and other housing programs can impact the City's ability to support affordable housing opportunities for extremely low- and very low-income households.

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Projects
AP-38 Projects Summary
Project Summary Information
Table 9 – Project Summary
1 Project Name CDBG Administration
Target Area Citywide
Goals Supported CDBG Program Administration
Needs Addressed Program Administration
Funding CDBG: $96,100
Description CDBG program oversight and coordination
Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
NA
Location Description 100 Civic Center, Lake Forest, CA (City Hall) Planned Activities CDBG program oversight and coordination, including public service grant management, preparation of reports, and IDIS management
2 Project Name Housing Rehabilitation Loans *
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Affordable Housing
Funding CDBG: $217,453 (plus program income received during the year)

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Description Housing rehabilitation loans for owner-occupied housing units Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
6 low- and moderate-income households
Location Description Citywide
Planned Activities Loans to rehabilitate owner-occupied housing units funded with entitlement funds and program income received during the year
3 Project Name Paint Program Grants *
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Affordable Housing
Funding CDBG: $35,000
Description Grants to assist homeowners in painting the exterior of their home Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
3 low- and moderate-income homeowners
Location Description Citywide
Planned Activities Grants to homeowners to paint the exterior of their home 4 Project Name Age Well Senior Services
Target Area Citywide
Goals Supported Public Services

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Needs Addressed Public Services
Funding CDBG: $7,200
Description Meals on Wheels
Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
100 Seniors and frail elderly
Location Description Citywide
Planned Activities Meals on Wheels for home-bound seniors and frail elderly 5 Project Name Alzheimer’s Orange County
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $4,780
Description Adult day services
Target Date 6/30/20245
Estimate the number and type of
families that will benefit from the
proposed activities
19 seniors and disabled adults
Location Description Citywide
Planned Activities Adult daycare and ancillary services for seniors and adults with Alzheimer’s, other forms of dementia, and disabilities

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6 Project Name Camino Health Center
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $14,100
Description Low-cost medical services
Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
2,400 Individuals
Location Description 22481 Aspen St., Suite A, Lake Forest, CA Planned Activities Reduced-cost medical and dental services for low- and moderate-income persons 7 Project Name Fair Housing Council of OC
Target Area Citywide
Goals Supported CDBG Program Administration
Needs Addressed Program Administration
Funding CDBG: $7,500
Description Fair housing services
Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
95 households (320 Individuals)

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Location Description Citywide
Planned Activities Fair housing outreach, education, and enforcement services to address impediments to fair housing
8 Project Name Families Forward
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Support Services and Housing
Funding CDBG: $18,970
Description Support services for at-risk and homeless families with children Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
32 homeless persons
Location Description Citywide
Planned Activities Case management for homeless families with children and families with children who are at risk of becoming homeless
9 Project Name Family Assistance Ministry
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Support Services and Housing
Funding CDBG: $12,300
Description Housing and services for households at risk of homelessness or that are homeless

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Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
486 lower-income individuals (465 with support services and 21 with rent or utility assistance) Location Description Citywide
Planned Activities Case management, food assistance, rental or utility assistance, and case management for households at risk of homelessness or that may be homeless 10 Project Name South County Outreach
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Support Services and Housing
Funding CDBG: $20,350
Description Homelessness prevention assistance
Target Date 6/30/2025
Estimate the number and type of
families that will benefit from the
proposed activities
220 low- and moderate-income persons (195 with food pantry, supportive services, and case management, and 25 with rent or utility assistance)
Location Description 7 Whatney St. B, Irvine, CA
Planned Activities Foodbank services, including case management - services also include emergency rent and utility assistance to prevent eviction or termination of services 11 Project Name Accessible Pedestrian Signal (APS) Push Buttons Target Area Citywide
Goals Supported Public Improvements and Public Facilities

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Needs Addressed Non-Housing Community Development
Funding CDBG: $175,000
Description Installation of APS push buttons comply with current ADA regulations Target Date 6/30/2026
Estimate the number and type of
families that will benefit from the
proposed activities
Per HUD data, an estimated 4,774 individuals with a disability reside in the project area. Per U.S.

Census 2022 5-Yr ACS data, 942 individuals residing in the project area have hearing difficulties, 733 have vision difficulties, and 1,70 have ambulatory difficulties Location Description CT: 320.14, 320.27, 524.10, 524.11, 524.15, 524.16, 524.24 Planned Activities Installation of APS push buttons at 18 intersections comply with current ADA regulations * The City is considering combining the Housing Rehabilitation Loan and Paint Program Grants programs into one Housing Rehabilitation Program during FY 24-25. Authorization for this action is pending City Council approval. If approved, funding and program beneficiary goals will be combined into one activity in IDIS.

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AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed For FY 2024-25, CDBG funds will support citywide activities for eligible households regardless of where they live in Lake Forest. No “area-wide” activities are planned for FY 2024-25; however, a list of CDBG- eligible Census Tract Block Groups is provided in Attachment 3.

Geographic Distribution
Table 10 - Geographic Distribution
Target Area Percentage of Funds
CDBG Target Areas 0
Citywide 100

Rationale for the priorities for allocating investments geographically The City does not allocate CDBG funds on a geographic basis; instead, funds are allocated to meet lower- income households' needs regardless of where they reside in the City. The City prioritizes using its CDBG funding to preserve affordable housing for lower-income households (via rehabilitation) and help prevent homelessness or assist those already homeless. These activities are carried out on a citywide basis.

CDBG-funded infrastructure and facility improvements are typically undertaken within Low- and Moderate-Income areas with a higher percentage of lower-income residents (see Attachment 3 for a list of the City’s CDBG-eligible areas). Some infrastructure/facility improvement projects may be undertaken outside the low- and moderate-income regions; such projects are typically limited to those that address ADA regulations.

Discussion
CDBG funds will fund programs that serve lower-income Lake Forest residents regardless of where they live in the City. For FY 2024-25, CDBG funds will benefit residents citywide.

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Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Although the Consolidated Plan and Action Plan addresses the community's affordable housing needs, the City's only HUD funding source is CDBG. HUD regulations prohibit the use of CDBG to construct new housing; however, the City will allocate funds to preserve existing housing that is affordable to lower- income homeowners. Other housing resources available to the City, such as former redevelopment resources (i.e., Lake Forest Housing Authority), may be available to support affordable housing endeavors.

Table 11 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 9
Special-Needs 0
Total 9

Table 12 - One Year Goals for Affordable Housing by Support Type One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 9
Acquisition of Existing Units 0
Total 9

Discussion
The City's CDBG-funded affordable housing strategy calls for maintaining affordable housing through housing rehabilitation programs and supporting rental assistance programs like the Housing Choice Voucher administered by the OCHA. The City anticipates that 165 Lake Forest renter households will receive rental assistance during FY 2024-25.

During the current and past Consolidated Plan cycles, the City has consistently funded a CDBG-funded housing rehabilitation loan and a separate housing rehabilitation grant program. To improve program efficiencies and effectiveness, the City is considering combining the two programs into one Housing Rehabilitation Program during FY 2024-25. Authorization for this action is pending City Council approval.

If approved, funding and program beneficiary goals will be combined into one activity in IDIS. The City anticipates nine homeowners will participate in the City’s housing rehabilitation program.

05/07/24 Annual Action Plan
2024-2025
27 OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-60 Public Housing – 91.220(h)
Introduction
The City of Lake Forest does not own or manage public housing.

Actions planned during the next year to address the needs to public housing Not applicable
Actions to encourage public housing residents to become more involved in management and participate in homeownership
Not applicable
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable
Discussion
The City of Lake Forest does not own or operate public housing.

05/07/24 Annual Action Plan
2024-2025
28 OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City recognizes the importance of assisting the homeless and near-homeless with a continuum of care approach that addresses a household’s immediate financial needs to prevent homelessness or shelter, support services, and employment opportunities to break the cycle of homelessness.

Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City collaborates and relies on nonprofit partners to reach out to homeless persons (especially unsheltered persons). The City will allocate CDBG funds to three agencies to provide services for homeless individuals. Each agency has an outreach component used to engage and assess clients.

In prior years, the City partnered with a local nonprofit to provide street homeless outreach services. In the fall of 2023, the City hired a Community Outreach Specialist. In addition to other duties, the outreach specialist is responsible for homeless outreach services. The City is funding this position with state Permanent Local Housing Allocation (PLHA) grant dollars.

Addressing the emergency shelter and transitional housing needs of homeless persons The City did not receive FY 2024-25 CDBG funding requests for emergency or transitional housing.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The Orange County Continuum of Care coordinates a system that incorporates several evidence-based practices, including a Housing First approach that involves moving persons directly from the streets into permanent housing accompanied by home-based supportive services. This approach has been effective with chronically homeless persons and families.

In past years, Lake Forest has used CDBG and local funding to expand permanent housing opportunities for the formerly homeless. In 2015, the City’s Housing Authority (former redevelopment agency) sold a four-unit apartment to Families Forward. These units provide permanent housing opportunities for lower-income households, including formerly homeless families. The City allocated CDBG funds in FY 2022-23 to support expanding the City’s permanent affordable housing opportunities supply. The activity has encountered delays due to a limited supply of suitable properties; however, City staff

05/07/24 Annual Action Plan
2024-2025
29 OMB Control No: 2506-0117 (exp. 07/31/2015)
continues to work with local nonprofit housing providers to bring the project to fruition. The City is not allocating any additional CDBG funding for this type of housing activity for FY 2024-25.

For FY 2024-25, CDBG funding is allocated to Families Forward. Families Forward will utilize funds to provide case management and support services to families residing in affordable housing. This program aims to stabilize at-risk families in affordable housing. HUD has also significantly increased the number of rental assistance vouchers for homeless Veterans (i.e., Veterans Affairs Supportive Housing or VASH vouchers). In addition to receiving rental assistance, veterans with a history of severe mental health illness, substance use disorder, or physical disabilities receive case management and appropriate support services from the Department of Veterans Affairs. Currently, 19 VASH vouchers are in place throughout Lake Forest.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

For FY 2024-25, the City will allocate CDBG funds to Family Assistance Ministries and South County Outreach for various services to assist the near-homeless and those already homeless. These agencies will also utilize CDBG funds to assist households at risk of eviction or the termination of utilities due to financial hardships. The City will also continue to support regional homeless planning efforts, including the OC CoC’s Discharge Plan, which aims to prevent individuals from leaving institutions such as jails and hospitals from becoming homeless.

Discussion
The programs identified above to address the needs of homeless people indicate that serving the homeless is a complex issue requiring a network of service providers. The City will allocate CDBG resources to support this network of agencies.

05/07/24 Annual Action Plan
2024-2025
30 OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-75 Barriers to affordable housing – 91.220(j)
Introduction
The City’s Consolidated Plan provides detailed information regarding barriers to affordable housing and actions to overcome these barriers. The actions to address these barriers during FY 2024-25 are summarized below.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
Affordable housing development faces several challenges, including construction costs, financing, and development regulations. The 2015–2021 Housing Element and 2020-2024 Consolidated Plan note that the City can encourage and facilitate affordable housing through financial assistance, removal of regulatory constraints, and administrative support. It offers the following actions to promote affordable housing production with limited funding.
• The City will monitor new neighborhood developments for compliance with development agreements that include an Affordable Housing Implementation Plan. • The City will collaborate with affordable housing developers to identify potential sites, write letters of support to help secure governmental and private-sector funding, and offer technical assistance related to applying state density bonus provisions. • The City will work with developers on a case-by-case basis to provide state-mandated regulatory concessions and incentives to develop affordable and senior housing. These concessions and incentives could include, but are not limited to, density bonuses, parking reductions, fee reductions or deferrals, expedited permit processing, and modified or waived development standards.
• If available, the City may provide financial subsidies to help reduce development costs in exchange for units reserved for lower-income residents.

Discussion
The Consolidated Plan includes an extensive narrative regarding barriers to affordable housing and actions the City can take to mitigate identified obstacles to affordable housing development. As outlined above, the City provides an expedited development review process for affordable housing projects to reduce holding and overall development costs. The City has little control over market forces such as the cost of land, building materials, and labor. If resources are available, the City may provide gap financing to help reduce overall development costs as an incentive to develop affordable housing.

There are no growth limit initiatives in Lake Forest.

05/07/24 Annual Action Plan
2024-2025
31 OMB Control No: 2506-0117 (exp. 07/31/2015)
AP-85 Other Actions – 91.220(k)
Introduction
Outlined below are additional actions the City will implement during FY 2024-25 to address the sub- strategies of the Consolidated Plan.

Actions planned to address obstacles to meeting underserved needs The City recognizes that special needs populations face challenges due to low income and unique life conditions. These individuals are often more likely to become homeless due to these factors. Special needs populations frequently require unique housing and supportive services. The City prioritizes supportive services and housing for special needs populations. In FY 2024-25, the City will fund public service agencies that assist underserved populations such as the homeless, seniors, people with disabilities, and low-income families with children.

Actions planned to foster and maintain affordable housing The City's strategies related to CDBG-funded affordable housing efforts are focused on maintaining the housing stock through its housing rehabilitation programs and helping to ensure individuals have access to housing free of discrimination due to race, gender, disability, and other personal or household characteristics. The City has allocated significant CDBG resources to support these activities. The City will also support OCHA’s administration of rental assistance programs like the Housing Choice Voucher and Certificate programs in Lake Forest.

Actions planned to reduce lead-based paint hazards
The Residential Lead-Based Paint (LBP) Hazard Reduction Act of 1992 changed the federal strategy for addressing LBP by emphasizing preventing childhood lead poisoning through housing-based approaches.

Consequently, lead-based paint hazard reduction is an eligible activity in the City’s housing rehabilitation programs.

All application packets for the City’s housing rehabilitation programs include a notice to educate residents about the dangers of lead and encourage screening children for elevated blood lead levels.

Additionally, housing units are tested for lead-based paint before using federal funds. Housing units identified with lead-based paint hazards are treated, so the lead-based paint is abated per current federal requirements. The use of lead-based paint is prohibited in newly constructed units.

Actions planned to reduce the number of poverty-level families The City will leverage limited CDBG funds to address poverty by partnering with nonprofit agencies that assist lower-income households. Specifically, the City will fund programs that provide safety net services such as food banks, financial assistance to prevent eviction, low-cost medical/dental care, and fair housing education/enforcement services.

05/07/24 Annual Action Plan
2024-2025
32 OMB Control No: 2506-0117 (exp. 07/31/2015)
Actions planned to develop institutional structure
The City of Lake Forest will continue efforts to eliminate institutional gaps and enhance the coordination of programs that serve the community. For example, the City will partner with nonprofit entities to deliver public services. City departments will continue to collaborate to evaluate programs and projects that may be funded in whole or in part with CDBG funds that address priority needs. The City will assist OCHA by participating in the Cities Advisory Committee – a quarterly meeting of cities and OCHA to discuss federal rental housing assistance and regional housing issues. As a supporter of the OC-CoC, the City will provide information for the County’s annual Continuum of Care Homeless Assistance grant application to HUD. The City will also continue to support the development of the County’s strategy to end chronic homelessness and a regional discharge plan.

Actions planned to enhance coordination between public and private housing and social service agencies
The City will continue participating in regional service coordination by participating in the Cities Advisory Committee, a quarterly meeting of cities and OCHA to discuss federal rental housing assistance issues.

Annually, the City meets with service providers to discuss service needs and ways to improve service to residents. Another example of enhanced coordination is preparing the countywide Analysis of Impediments to Fair Housing. The City participated in developing this document, which required significant jurisdictional coordination.

Broadband: According to BroadbandNow.com, 99.8 percent of Lake Forest residential properties have access to broadband internet services. Cox Communications is the top broadband service provider, covering 92.3 percent of the City. AT&T is also available via fiber optic cable to 86.9 percent of Lake Forest properties. Additional providers offer satellite or 5-G-based broadband service.

Most broadband service providers in Orange County participate in the Affordable Connectivity Program (ACP). The ACP was created by the Infrastructure and Jobs Act of 2021. The ACP provides eligible households with a $30 discount on monthly broadband internet service. ACP eligibility is based on household income (200 percent of federal poverty or less) or participation in government assistance programs, such as SSI, Medicaid, or WIC. Funding may also be available to provide “discounts” for devices such as laptops, desktop computers, or tablets. Information about the ACP is available online; however, many service providers will inform clients of this program and will also assist clients in applying for benefits.

In November 2022, the City approved a nonexclusive franchise agreement with SiFi Networks (SiFi) to build a high-speed internet open access network using direct fiber optic connections to each Lake Forest property. The new fiber optic system will provide residents with an additional choice for high-speed internet service. The proposed network will provide 10 GB connectivity to homes and 100 GB to businesses and municipal facilities. SiFi offers low-cost internet options for disadvantaged families.

05/07/24 Annual Action Plan
2024-2025
33 OMB Control No: 2506-0117 (exp. 07/31/2015)
Additionally, the City will continue encouraging developers and property owners to incorporate broadband infrastructure into all new or substantially rehabilitated housing projects, especially affordable housing projects.

Hazard Mitigation: The Disaster Mitigation Act of 2000 requires local governments to prepare a plan to document their hazard mitigation planning process and to identify hazards, potential losses, mitigation needs, goals, and strategies. Each state and local government must have a federally approved mitigation plan to be eligible for hazard mitigation grant funding (e.g., FEMA). Lake Forest recently began the development of a Local Hazard Mitigation Plan (LHMP). The LMHP will present strategies for reducing the City's vulnerability to the impacts of events that could threaten lives, property, or the environment.

This plan will identify opportunities for the City to become more resilient to hazards and help alleviate risks to the community.

There are three primary elements to the City’s LHMP:

1. Hazard Identification: Profile potential hazards by type, previous occurrences, and probability.

2. Vulnerability Assessment: Identify the potential impact of the hazards profiled, vulnerability to each hazard, and potential loss to life, environment, and economy.

3. Mitigation Actions: Develop overarching strategies, specific goals, and actions to reduce hazard impacts.

The City Council is expected to adopt the LHMP in July or August 2024.

Discussion
HUD-funded grant recipients are required to not discriminate in housing or services directly or indirectly based on race, color, religion, sex, national origin, age, familial status, or disability. Grant recipients such as Lake Forest are required to affirmatively further fair housing by (1) examining and attempting to alleviate housing discrimination within their jurisdiction, (2) promoting fair housing choices for all persons, (3) providing opportunities for all persons to reside in any given housing development, regardless of race, color, religion, sex, disability, familial status, national origin, and other personal or familial attributes, (4) promote housing that is accessible to and usable by persons with disabilities, (5) and comply with the non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate metropolitan-wide area fair housing planning. The Analysis of Impediments (AI) to Fair Housing Choice is the primary document for affirmatively furthering fair housing. In addition to identifying impediments, a strategy to overcome barriers must be developed and implemented - accomplishments are reported annually. The City participated in developing the 2020-2024 countywide AI, which the City Council adopted in May 2020. A summary of impediments to fair housing and the action steps the City will take during FY 2024-25 to affirmatively further fair housing are found in Attachment 4.

05/07/24 Annual Action Plan
2024-2025
34 OMB Control No: 2506-0117 (exp. 07/31/2015)
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
The program-specific requirements for the City CDBG program are listed below.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
0 3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0

5. The amount of income from float-funded activities 0
Total Program Income 0

Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low- and moderate-income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
100.00%

Discussion
The City will meet the 70% low- and moderate-income “Overall Benefit” requirement for using CDBG funds in one year – FY 2024-25.

FY 2024-25 CDBG funds will be allocated to the activities listed in section AP-35. Public service activities will be qualified as “limited clientele benefit.” Public facility and infrastructure improvements will be qualified under “low- and moderate-income area benefit” or “limited clientele benefit” (e.g., ADA improvements). Housing Rehabilitation and Neighborhood Pride Paint programs will be available citywide to qualified low- and moderate-income homeowners.

05/07/24 Annual Action Plan
2024-2025
35 OMB Control No: 2506-0117 (exp. 07/31/2015)
CDBG program income received during FY 2024-25 will be allocated to the City’s Housing Rehabilitation Program (Revolving Loan funds). The City does not have surplus funds from urban renewal settlements, nor does the City have grant funds returned to its line of credit. The City will not undertake float-funded activities; therefore, it does not anticipate program income from this type of activity. Finally, the City does not anticipate undertaking urgent need activities during FY 2024-25, nor will it undertake any actions that may result in the involuntary displacement of businesses or residents.

As indicated above, CDBG program income will fund additional housing rehabilitation loans if available.

The City anticipates carrying forward $0 in housing rehabilitation funds for housing activities during FY 2024-25.

Five-Year and One-Year Summary of Accomplishments
Grantee Name: City of Lake Forest
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Housing Units 8 9 112.5%
2021 Housing Units 13 16 123.08%
2022 Housing Units 13 22 169.23%
2023 Housing Units
2024 Housing Units
40 47 117.50%
2020 Housing Units 0 0 NA
2021 Housing Units 1 0 0.00%
2022 Housing Units 0 0 0.00%
2023 Housing Units
2024 Housing Units
0 0 0.00%
2020 Housing Units 200 192 96.00%
2021 Housing Units 185 169 91.35%
2022 Housing Units 170 170 100.00%
2023 Housing Units
2024 Housing Units
200
(Annual Avg)
177
(3 Yr Avg)

88.50%
(3 Yr Avg)
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Individuals 295 276 93.56%
2021 Individuals 1,691 2,296 135.78%
2022 Individuals 1,723 2,310 134.07%
2023 Individuals
2024 Individuals
8,000 4,882 61.03%
2020 Projects 0 0 0.00%
2021 Projects 6,754 0 0.00%
2022 Projects 0 5,755 0.00%
2023 Projects
2024 Projects
7,500 5,755 76.73%
Housing Choice Vouchers (Administered by OCHA): Improve or expand the supply of housing affordable to lower-income households Provide or improve access to public social services for low- and moderate-income persons and persons with special needs
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
CDBG
Decent Housing
CDBG
5-Yr Con Plan Goal
Housing rehabilitation loans and grants to improve or expand the supply of housing affordable to lower-income households HUD
Housing
Vouchers
5-Yr Con Plan Goal
Housing acquisition loans and grants to improve or expand the supply of housing affordable to lower-income households CDBG
5-Yr Con Plan Goal
Improve and expand public infrastructure and facilities that benefit low- and moderate-income neighborhoods and residents
Objective: Housing Preservation
Suitable Living Environment
Objective: Public Social Services
Objective: Infrastructure and Facility Improvements
Attachment 1 Page 1 of 2

Five-Year and One-Year Summary of Accomplishments
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Businesses 80 80 100.00%
2021 Businesses 0 0 0.00%
2022 Businesses 0 0 0.00%
2023 Businesses
2024 Businesses
80 NA
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Individuals 2,375 914 38.48%
2021 Individuals 861 80 9.29%
2022 Individuals 1,057 438 41.44%
2023 Individuals
2024 Individuals
2,680 1,432 53.43%
Source of
Funds Year Performance
Indicators
Expected
Number
Actual
Number
Percent
Completed
2020 Year of Admin 0 0 NA
2021 Year of Admin 0 0 0.00%
2022 Year of Admin 75 92 122.67%
2023 Year of Admin
2024 Year of Admin
450 92 20.44%
2020 Households 1 1 100.00%
2021 Households 1 1 100.00%
2022 Households 1 1 100.00%
2023 Households
2024 Households
5 3 60.00%
CDBG

1. Fair Housing services were funded as a public service during FY 20-21, FY 21-22 & FY 22-23, and as Admin in FY 23-24 and proposed as Admin for FY 24-25 CDBG
5-Yr Con Plan Goal
CDBG
5-Yr Con Plan Goal
Provide for administration and planning activities to carry out actions that address needs in the Consolidated Plan, including fair housing services to address local impediments to fair housing 1 Provide for administration and planning activities to carry out actions that address needs in the Consolidated Plan
Objective: Economic Opportunities
Economic Opportunity
5-Yr Con Plan Goal
Other
Objective: Administration and Planning
On September 1, 2020, added small business assistance grant for businesses impacted by the Coronavirus (CDBG-CV funding) Provide a continuum of supportive and housing services for the homeless and households at risk of homelessness
5-Yr Con Plan Goal
Continuum of Care
Objective: Homeless Continuum of Care

CDBG-CV
Attachment 1 Page 2 of 2

Saddleback Valley News
1920 Main St. Suite 225
Irvine, California 92614
(714) 796-2209
100 CIVIC CENTER DR, ATTN: CITY CLERK
LAKE FOREST, California 92630

AFFIDAVIT OF PUBLICATION

STATE OF CALIFORNIA
County of Orange County
I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am the principal clerk of the Saddleback Valley News, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange County, State of California, on December 7, 1976, Case No. A-86742 in and for the City of Irvine, County of Orange County, State of California; that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit:
04/04/2024
I certify (or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct:

Executed at Anaheim, Orange County, California, on
Date: Apr 4, 2024.
______________________________
Signature
Attachment 2
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Attachment 2
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Attachment 2
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SUMMARY OF PUBLIC COMMENTS

30-DAY COMMENT PERIOD (4/5/24 THROUGH 5/6/24)
No public comments were received during the public comment period.

MAY 7, 2024, CITY COUNCIL PUBLIC HEARING
A representative of Families Forward thanked the City Council for past and continued support and provided a short update on the success of their programs.

Attachment 2
4 of 4

CITY OF LAKE FOREST
2023 CDBG-Eligible Block Groups
City Census
Tract
Block
Group
# Low/Mod
Residents
Low/Mod
Universe % Low/Mod
Lake Forest 032014 2 2,440 2,765 88.25%
Lake Forest 032027 1 2,350 3,440 68.31%
Lake Forest 052410 2 420 620 67.74%
Lake Forest 032047 1 610 950 64.21%
Lake Forest 052423 2 1,775 2,860 62.06%
Lake Forest 052416 1 615 995 61.81%
Lake Forest 052410 1 1,035 1,690 61.24%
Lake Forest 052411 2 1,085 1,780 60.96%
Lake Forest 052410 3 1,170 2,010 58.21%
Lake Forest 052424 1 860 1,500 57.33%
Lake Forest 052425 3 770 1,420 54.23%
Lake Forest 052408 1 545 1,035 52.66%
* HUD 2023 Low/Moderate Income data as of 5/15/23
Attachment 3
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ORANGE COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE August 6, 2020

REGIONAL PROPOSED AI GOALS AND STRATEGIES
To address the contributing factors described above, the AI plan proposes the following goals and actions:

Regional Goals and Strategies."
Goal 1: Increase the supply of affordable housing in high opportunity areas.1 Strategies:

1. Explore the creation of a new countywide source of affordable housing.

2. Using best practices from other jurisdictions, explore policies and programs that increase the supply of affordable housing, such as linkage fees, housing bonds, inclusionary housing, public land set-aside, community land trusts, transit-oriented development, and expedited permitting and review.

3. Explore providing low-interest loans to single-family homeowners and grants to homeowners with household incomes of up to 80% of the Area Median Income to develop accessory dwelling units with affordability restrictions on their property.

4. Review existing zoning policies and explore zoning changes to facilitate the development of affordable housing.

5. Align zoning codes to conform to recent California affordable housing legislation.

Goal 2: Prevent displacement of low- and moderate-income residents with protected characteristics, including Hispanic residents, Vietnamese residents, other seniors, and people with disabilities.

Strategies:

1. Explore piloting a Right to Counsel Program to ensure legal representation for tenants in landlord-tenant proceedings, including those involving the application of new laws like A.B. 1482.

Goal 3: Increase community integration for persons with disabilities.

Strategies:

1. Conduct targeted outreach and provide tenant application assistance and support to persons with disabilities, including individuals transitioning from institutional settings and individuals who are at risk of institutionalization. As part of that assistance, maintain a housing database accessible to persons with disabilities.

2. Consider adopting the accessibility standards adopted by the City of Los Angeles, which require at least 15 percent of all new units in city-supported Low-Income Housing Tax Credit (LIHTC) projects to be ADA- accessible with at least 4 percent of total units to be accessible for persons with hearing and/or vision disabilities.

1 The term “high opportunity areas” generally means locations where there are economic and social factors and amenities that provide a positive impact on a person’s life outcome. This is described in more detail in Section iii, Disparities in Access to Opportunity.

Attachment 4
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Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately likely to be lower-income and to experience homelessness.

Strategies:

1. Reduce barriers to accessing rental housing by exploring eliminating application fees for voucher holders and encouraging landlords to follow HUD's guidance on the use of criminal backgrounds in screening tenants.

2. Consider incorporating a fair housing equity analysis into the review of significant rezoning proposals and specific plans.

Goal 5: Expand access to opportunities for protected classes.

Strategies:

1. Explore the voluntary adoption of Small Area Fair Market Rents or exception payment standards in order to increase access to higher opportunity areas for Housing Choice Voucher holders.

2. Continue implementing a mobility counseling program that informs Housing Choice Voucher holders about their residential options in higher opportunity areas and provides holistic support to voucher holders seeking to move to higher opportunity areas.

3. Study and make recommendations to improve and expand Orange County's public transportation to ensure that members of protected classes can access jobs in employment centers in Anaheim, Santa Ana, and Irvine.

4. Increase support for fair housing enforcement, education, and outreach.

CITY OF LAKE FOREST PROPOSED AI GOALS AND STRATEGIES

1. In collaboration with the Orange County Housing Authority (OCHA):
a. Attend quarterly OCHA Housing Advisory Committee to enhance the exchange of information regarding the availability, procedures, and policies related to the Housing Assistance Voucher program and regional housing issues.
b. Support OCHA's affirmative fair marketing plan and de-concentration policies by providing five-year and annual PHA plan certifications.
c. In coordination with OCHA and fair housing services provider, conduct landlord education campaign to educate property owners about State law prohibiting discrimination based on household income.

2. Through the City's fair housing contractor:
a. Provide fair housing education and information to apartment managers and homeowner associations on why denial of reasonable modifications/accommodations is unlawful. b. Conduct multi-faceted fair housing outreach to tenants, landlords, property owners, realtors, and property management companies. Methods of outreach may include workshops, informational booths, presentations to community groups, and the distribution of multi-lingual fair housing literature.
c. Provide general fair housing counseling and referrals services to address tenant-landlord issues, and investigate allegations of fair housing discrimination and take appropriate actions to conciliate cases or refer to appropriate authorities.
d. Periodically monitor local newspapers and online media outlets to identify potentially discriminatory housing advertisements.

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e. Include testing/audits within the scope of work with fair housing provider. f. Regularly consult with the City's fair housing contractor on potential strategies for affirmatively furthering fair housing on an ongoing basis.

3. In cooperation with the Orange County Transportation Authority:
a. Provide community education regarding transport services for persons with disabilities. b. Explore bus route options to ensure neighborhoods with a concentration of low-income or protected class populations have access to transportation services.

4. Support local eviction prevention strategies to reduce the number of homeless individuals and families (homelessness prevention services).

5. Prepare a new Housing Element that is compliant with all current State laws and is certified by the California Department of Housing and Community Development.

6. Update zoning ordinance to comply with current State law.

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ATTACHMENT 2

DRAFT
FY 2024-25

CONSOLIDATED ANNUAL

PERFORMANCE EVALUTATION
REPORT
(CAPER)
September 16, 2025

CAPER 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year.

The City of Lake Forest adopted its FY 2020 -2024 Five -Year Consolidated Plan on June 16, 2020, which established objectives for the City’s Community Development Block Grant (CDBG) program in order to create a viable community by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low- and moderate-income. The objectives identified included the following:
• Rehabilitate the City’s existing single-family housing stock, including mobile homes • Conserve the existing supply of affordable housing
• Provide supportive housing and services for the homeless and those at risk of becoming homeless • Provide needed community services and infrastructure improvements benefitting low - and moderate-income persons and those with special needs
• Focus on expanding economic opportunities for low- and moderate-income residents.

During Fiscal Year 2024-2025, the fifth year of the five-year cycle, the City carried out a variety of activities to address Consolidate Plan objectives, including the following:
• Assisted with the rehabilitation of 12 housing units owned by low- and moderate-income households • Funded a variety of safety net public service grant programs to prevent homelessness and assist lower -income households- 2,954 Lake Forest residents were assisted with FY 2024-2025 funds
• One capital project was funded during the reporting period: Accessible Pedestrian Signals, which benefitted 5,475 disabled residents.

In FY 2024 -2025, the US Department of Housing and Urban Development (HUD) awarded the City $ 518,153 of Community Development Block Grant (CDBG) entitlement funds. In addition, $233,269.38 of revolving loan funds were receipted from rehabilitation loan payoffs along $127,329 of program income from the affordable housing program , and $627,778.62 of unexpended prior year carryover. Of the $1,506,530.00 available, $1,165,830.51 (77 percent) was expended.

CAPER 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, tar gets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Goal Category Source
/
Amount
Indicator Unit of
Measure
Expected
–
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program
Year
Actual –
Program
Year
Percent
Complete
Economic
Opportunities
Non-Housing
Community
Development
CDBG:
$ Businesses assisted Businesses
Assisted 50 0 0.00% 0 0 0.00%
Homeless
Continuum of
Care
Homeless CDBG:
$
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 2,500 460 18% 692 460 66.47%
Homeless
Continuum of
Care
Homeless CDBG:
$
Tenant-based rental
assistance / Rapid
Rehousing
Households
Assisted 50 0 0.00% 0 0 0.00%
Homeless
Continuum of
Care
Homeless CDBG:
$
Homeless Person
Overnight Shelter
Persons
Assisted 30 0 0.00% 0 0 0.00%
Homeless
Continuum of
Care
Homeless CDBG:
$
Homelessness
Prevention
Persons
Assisted 250 0 0.00% 46 0 0.00%
Housing
Preservation
Affordable
Housing
CDBG:
$
Homeowner Housing
Rehabilitated
Household
Housing
Unit
40 4 10.00% 9 4 44.44%

CAPER 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
Infrastructure
and Facility
Improvements
Non-Housing
Community
Development
CDBG:
$
Public Facility or
Infrastructure
Activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 7,500 5,475 73.00% 4,774 5,475 87.00%
Infrastructure
and Facility
Improvements
Non-Housing
Community
Development
CDBG:
$
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 0 0 0 0 0 0.00%
Program
Administration Administration CDBG:
$ Other Other 450 0 0.00% 95 0 0.00%
Public Social
Services
Non-Homeless
Special Needs
Low &
Moderate-
income
Households
CDBG:
$
Public service
activities other than
Low/Moderate
Income Housing
Benefit
Persons
Assisted 8,000 1,220 15.25% 2519 1220 48.43%
Table 1 - Accomplishments – Program Year & Strategic Plan to Date

CAPER 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

As summarized above, the City focused CDBG funds on addressing Consolidated Plan priority needs during the reporting period. Consistent with the Plan, the City focused public service grant resources on safety net programs for lower-income households; the City allocated approximately 7 percent of CDBG funds for public services, 9.67 percent for administration. FY 2024-2025 reporting period accomplishments for CDBG funds include the following:
• Age Well provided case management services to assess homebound seniors' health and living situation, thus helping seniors rem ain healthy and housed and avoid costly institutionalization in managed care facilities. • Camino Health Center provided reduced -cost medical and pediatric dental care services for lower -income households, including the uninsured and the homeless.
• Fair Housing Council of Orange County provided fair housing outreach, education, and enforcement service for tenants and landlords. • Family Assistance Ministries provided food, rent, and utility assistance to lower -income households at risk of eviction and utility service shut-off. Program participants also benefitted from case management services. • Families Forward provided transitional housing and rapid rehousing, including supportive services to homeless families with children. • South County Outreach’s food bank program allowed lower -income households to focus limited financial resources on maintaining housing, thus preventing homelessness.
• The City’s housing rehabilitation program helped preserve and improve the City’s existing stock of owner -occupied housing (including mobile homes) - 12 homeowners received housing rehab assistance during the reporting period. Typical improvements include installing energy-efficient windows, heating/ac systems, plumbing, roofs, flooring, and exterior painting. The City’s Neighborhood Pride Paint program assisted three (3) homeowners. Additionally, OCHA provided rental assistance to 156 Lake Forest renter households though the HCV Program, five (5) through the COC program, three (3) through the FSS program, seven (7) through the FUP, two (2) through the NED, 24 portability program 16 through VAS, six (6) thorugh EHV, for a total of 219 low income hous eholds served, all of which were seniors, disabled, family, homeless, and/or veteran households.
• One public infrastructure/facility improvement project was completed: The Accessible Pedestrian Signal project that provided for the installation of audable pedestrian push buttons several intercections near the residential areas in compliance with ADA regul ations.

Retention on the Senior Center Project was paid during the fiscal year, though the project was officially completed in the prior fiscal year.

CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
CDBG
White 1,080
Black or African American 28
Asian 113
American Indian or American Native 8
Native Hawaiian or Other Pacific Islander 13
Total 1,242
Hispanic 802
Not Hispanic 440
Table 2 – Table of assistance to racial and ethnic populations by source of funds Narrative
Based on the data from Table 2, 87% of CDBG program participants are White; most of whom are reported to be ethnically Hispanic/Latino (65%). An additional nine (9) percent were reported to be Asian, followed by two (2) percent for Black or African American , and one (1) percent for each American Indian or American Native and Native Hawaiian or Other Pacific Islander

CAPER 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG public - federal 1,506,530.00 $1,165,830.51
Table 3 - Resources Made Available
Narrative
According to the City’s FY 2024-2025 Annual Action Plan, the City anticipated utilizing $518,153 in CDBG program resources to address community needs during the reporting period.In addition, $233,269.38 of revolving loan funds were receipted from rehabilitation loan payoffs along $127,329 of program income from the affordable housing program, and $627,778.62 of unexpended prior year carryover. Of the $1,506,530.00 available, 77 percent was expended. As reported in Table 3, the City expended $1,165,830.51 in CDBG funds, including program income, during the FY 2024-2025 reporting period.

IDIS Program Report PR26 provides a detailed summary of CDBG and CDBG-CV expenditures for the report period and can be found in the appendix.

Identify the geographic distribution and location of investments Target Area Planned
Percentage of
Allocation
Actual Percentage
of Allocation
Narrative Description

CDBG TARGET
AREAS 18 18
Public Facility Improvements, ADA, and
Infrastructure
Citywide 82 82
Administration, Fair Housing, Public
Services, and Housing
Table 4 – Identify the geographic distribution and location of investments Narrative
Funds expended by priority need during the fiscal year were as follows:
• Admin/FH $110,106.46 9%
• Housing $315,070.63 27%
• Public Facilities and Improvements $182,004.25 16%
• Public Services $72,920 6%
• Acquisition of Real Property $485,729.17 42%
Total $1,165,830.51 100%
As reported in Table 4, the City utilized 82% of CDBG funds to address the needs of lower-income Lake Forest residents on a citywide basis. A small percentage of CDBG funds was spent on infrastructure projects which are located within the City’s CDBG Target Area.

CAPER 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were us ed to address the needs identified in the plan.

The City of Lake Forest made every effort to leverage CDBG funds to the greatest extent possible. Unlike prior years, no additional resources were used to leverage CDBG funds during the reporting period. There is no match requirement for the CDBG (and CDBG-CV) program.

CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low -income, low-income, moderate- income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 0 0
Number of Non-Homeless households to be
provided affordable housing units 9 12
Number of Special-Needs households to be
provided affordable housing units 0 219
Total 9 231
Table 5 – Number of Households
One-Year Goal Actual
Number of households supported through
Rental Assistance 0 219
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 9 12
Number of households supported through
Acquisition of Existing Units 0 0
Total 9 231
Table 6 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals. Discuss how these outcomes will impact future annual action plans.

Even though program staff exceeded planned housing rehabilitation goals during the report period, the program may face future challenges. Recent press reports indicate that rising mortgage interest rates and home prices have led many homeowners to choose to rehabilitate their existing homes versus upgrading to a new home. This scenario may increase demand for limited CDBG funds allocated for housing rehabilitation.

Approximately 5% of the City’s housing stock are mobile homes; however, many coach owners are lower- income residents with limited sources of income (e.g., social security, disability, pension). This cohort of homeowners will likely continue to seek City assistance to rehabilitate their homes (e.g., 9 of the 1 2 housing units rehabilitated during the FY 2024 -2025 reporting period were mobile homes). The number of contractors specializing in mobile home rehabilitation is limited; however, in response to this challenge,

CAPER 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
the City will continue to appeal to new contractors to participate in the program, including efforts to attract additional minority and women contractors.

Include the number of extremely low -income, low -income, and moderate -income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 2 0
Low-income 12 0
Moderate-income 1 0
Total 15 0
Table 7 – Number of Households Served

Narrative Information
Table 7 provides information regarding the households that received housing rehabilitation assistance during FY 2024 -2025, which benefitted 15 low - and moderate income households.

OCHA reports that 219 Lake Forest very low -income and extremely low -income renter households received rental assistance during the FY 2024-2025 reporting period. The City is not a recipient of HOME funds.

CAPER 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
During FY 2024 -2025 Lake Forest did not allocate CDBG funds for homeless outreach. Mercy House provided outreach and engagement services to chronic homeless with an Orange County Sheriff Homeless Liaison Officer's support - Mercy House was funded with non-HUD resources.

Addressing the emergency shelter and transitional housing needs of homeless persons During the FY 2024-2025 reporting period, the City did not fund emergency shelter or transitional housing programs.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The City’s homeless strategy delineated in the Con Plan calls for providing safety net services that help prevent individuals and families from becoming homeless. To this end, during the FY 2024-2025 reporting period, CDBG funding was allocated to Families Forward, Family Assistance Ministries and South County Outreach to assist households at risk of becoming homeless. C0llectively, these three agencies provided rent, utility, and food assistance to 460 lower -income Lake Forest residents during the reportin g period.

An additional 219 lower-income Lake Forest residents were assisted with rent/utility assistance during the reporting period with FY 2024-2025 Super-funded CDBG funds.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the peri od of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
As recently as FY 2024 -2025, the City utilized local funds (former redevelopment resources) to acquire residential properties for permanent affordable housing. Families Forward operates these units as

CAPER 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
permanent, affordable housing for lower-income households, and these units will remain affordable for lower-income households for a minimum of 55 years. The City did not undertake a similar activity during the FY 2024 -2025 reporting period; however, OCHA r eports that 219 Lake Forest households were assisted with rental subsidies during the reporting period, which included disabled Lake Forest homeless households (benefitting from Continuum of Care Program Permanent Supportive Housing Certificates) and homel ess, disabled veteran households that benefitted from Veterans Affairs Supportive Housing (VASH) vouchers.

CAPER 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City of Lake Forest does not own or manage public housing.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
Not Applicable, the City of Lake Forest does not own or manage public housing.

Actions taken to provide assistance to troubled PHAs
Not applicable, the City of Lake Forest does not own or manage public housing.

CAPER 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The FY 2024 -2025 Annual Action Plan indicated that the City would address affordable housing barriers by providing resources to assist social service agencies that provide fair housing counseling and housing referral services for low- and moderate-income and special needs populations. During fiscal year, the City provided funds to the Fair Housing Council of Orange County (FHCOC). Services provided by the Council included outreach, education, and fair housing enforcement. A total of 105 households were assi sted during the reporting period addressing issues and disputes related to rental agreements, notices, security deposits, unit habitability, and more. FHCOC reports one housing discrimination complaint was received from a Lake Forest resident during the year; however, the issue was resolved through counseling.

The Consolidated Plan and Action Plan also indicated barriers to affordable housing development would be addressed by considering ways to reduce development fees and expedite the entitlement review process. As previously outlined, the City has provided various subsidies to create new affordable housing opportunities for lower -income households; however, no affordable housing development was completed during FY 2024-2025.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The City recognizes that special needs populations face challenges due to low income and their particular life situation. Special needs populations (e.g., the disabled and homeless) often require housing accommodations and supportive services. The City prioritizes supportive services and housing for special needs populations. During FY 2024 -2025, the City funded several public service agencies that provide a social safety net to help at-risk households. These services include free or reduced-cost food, healthcare, and daycare services. As outlined in section CR-25 - Homeless and Other Special Needs, several nonprofit partners provided supportive services to the homeless and those at risk of becoming homeless.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The Residential Lead -Based Paint (LBP) Hazard Reduction Act of 1992 (Title X) changed the federal approach to addressing LBP by emphasizing preventing childhood lead poisoning through housing-based strategies. The City considers lead-based paint hazard reduction as an eligible activity in the City’s housing rehabilitation programs. All application packets for the City’s housing rehabilitation programs include a notice to educate residents about the health dangers of lead and encourage screening children for elevated blood-lead levels. Additionally, before federal funds are used for housing rehabilitation, all units are screened for lead-based paint hazards. Housing units identified with lead-based paint are treated, so paint hazards are abated per federal requirements. The use of lead-based paint has been prohibited since

CAPER 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
1978. All housing units rehabilitated during FY 2024 -2025 met an exemption allowed under HUD lead - based paint program regulations.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) According to data from the U.S. Census Bureau (2021: American Community Survey 5 -Year Estimates – Table S1701), approximately 10.4% of Lake Forest residents have incomes below poverty. Specifically,

14.6% of City residents aged 65 and older and 7.1% of children under 18 have a household income below poverty. The Consolidated Plan and Annual Action Plan indicated that the City would support social services and housing activities for households living below the poverty line. During the FY 2024 -2025 reporting p eriod, low -income seniors were assisted with CDBG -funded in -home support and case management services; these services were provided for free. The pro gram offers various medical, therapeutic, and social services for lower income seniors. Recognizing that poverty-level households may need assistance affording food and health care, the City also provided financial assistance to nonprofits that provide primary health care and food bank services. Service providers also offered clients career counseling and computer training to help clients develop the skills and knowledge necessary for today’s workplace.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) During FY 2024 -2025, the City continued efforts to eliminate institutional gaps and enhance program coordination with all community segments. For example, the City partnered with nonprofit entities to deliver public services. City departments also continue d to collaborate to evaluate projects funded in whole or in part with CDBG funds that address priority needs. The City assisted OCHA by participating in the Cities Advisory Committee – a quarterly meeting of municipal and OCHA staff to discuss federal rental housing assistance and regional housing issues. The City also provided critical information and support for the regional Continuum of Care (CoC) as it prepares the County’s CoC Homeless Assistance grant application for HUD consideration. The City also supported efforts to develop the County’s Ten-Year Plan to end chronic homelessness and a regional discharge plan. Finally, the City coordinated with other Orange County grantees to prepare the 2020 -2024 Orange County Analysis of Impediments to Fair Housing for a new five-year cycle.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
As indicated above, the City participated in regional coordination of services by participating in the quarterly Cities Advisory Committee held by OCHA to discuss federal rental housing assistance and as a member of the Orange County CoC Forum. The City has partnered with local nonprofit housing providers to expand affordable housing opportunities for lower -income households in the past years.

CAPER 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) Consolidated Plan regulations require CDBG recipients to (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2) promote fair housing choice for all persons; (3) provide opportunities for all persons to reside in any give n housing development, regardless of race, color, religion, sex, disability, familial status, or national origin; (4) promote housing that is accessible to and usable by persons with disabilities; and (5) comply with the non -discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with one another and initiate countywide fair housing planning. The Analysis of Impediments to Fair Housing Choice (AI) is the primary document for this purpose. Consistent with HUD’s directive, the City partnered with 19 Orange County jurisdictions to prepare a countywide AI. The AI provides an overview of fair housing impediments throughout Orange County, including Lake Forest. The AI also includes an action plan to address regional and local fair housing impediments. Attachment 3 summarizes the steps the City and the Fair Housing Council of Orange County took to address fair housing impediments during FY 2024-2025.

CAPER 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long -term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements The City’s CDBG monitoring program is designed to provide program staff with information necessary tove sure that sub-recipients are carrying out individual activities as described in their contracts, and ensure sub-recipients use appropriate accounting an d record-keeping methods as it relates to the use of CDBG funds. Program policies ensure sub -recipients receive training regarding CDBG grant management, including the following topics: 1) review CDBG program goals, objectives, and sub -recipient obligations; 2) review the content of the sub -recipient agreements; and 3) review regulations related to the CDBG program that impact sub-recipients and the implementation of their programs. On-site monitoring of sub- recipients is conducted biennially unless a progr am or administrative issues are identified or the grant recipient is new to CDBG. The City conducted on-site monitoring during the FY 2024-25 reporting period.

In general, sub -recipients were complying with program requirements. Some programs did not meet planned performance goals.

On-site monitoring will be scheduled for FY 202 5-26. During the reporting period, program staff worked closely with City departments to ensure CDBG program regulations and other federal requirements were implemented. City departments and public service grant sub -recipients submitted accomplishment reports. Sub-recipients are required to provide documentation to support CDBGreimbursement requests.

The City also made every effort to comply with all CDBG and Consolidated Plan regulations. The City’ Citizen Participation Plan ensures that community input is considered before submitting a substantial amendment or an annual update to HUD. It also allows residents to review and comment on yearlyperformance. Construction, professional service, and sub-recipient agreements have been prepared to ensure compliance with applicable federal regulations. Additionally, the City has implemented an open procurement process that encourages bidding from minority and women-owned businesses.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

The City published a notice in the Saddleback Valley News on August 28, 2025, announcing a 15-day public comment period and City Council meeting to encourage resident participation. The FY 2024-2025 CAPER was available for public review and comment from August 28, 2025, through September 16, 2025, online and at Lake Forest City Hall, located at 100 Civic Center. The Lake Forest City Council accepted additional public comments at its September 1 6, 2025, meeting. A copy of this notice and a summary of public comments is provided in the appendix.

CAPER 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

No FY 2024-2025 Action Plan changes were undertaken during the reporting period.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

CAPER 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 1 0 0 0 0
Total Labor Hours 0
Total Section 3 Worker Hours 0
Total Targeted Section 3 Worker Hours 0
Table 5 – Total Labor Hours

Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers
Outreach efforts to generate job applicants who are Other Funding Targeted Workers.

Direct, on-the job training (including apprenticeships).

Indirect training such as arranging for, contracting for, or paying tuition for, off-site training.

Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).

Outreach efforts to identify and secure bids from Section 3 business concerns.

Technical assistance to help Section 3 business concerns understand and bid on contracts.

Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns.

Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services.

Held one or more job fairs.

Provided or connected residents with supportive services that can provide direct services or referrals.

Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation.

Assisted residents with finding child care.

Assisted residents to apply for, or attend community college or a four year educational institution.

Assisted residents to apply for, or attend vocational/technical training.

Assisted residents to obtain financial literacy training and/or coaching.

Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

Provided or connected residents with training on computer use or online technologies.

Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses.

Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.

Other.

Table 6 – Qualitative Efforts - Number of Activities by Program

CAPER 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Narrative

ATTACHMENT 3

RESOLUTION NO. 2025-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
FOREST, CALIFORNIA, APPROVING THE FY 2024-25

CONSOLIDATED ANNUAL PERFORMANCE EVALUATION
REPORT FOR THE CITY’S COMMUNITY DEVELOPMENT

BLOCK GRANT PROGRAM
WHEREAS, the City of Lake Forest (“City”) is an entitlement grantee participating in the Federal Community Development Block Grant (“CDBG”) program; and
WHEREAS, the City is required to annually submit a Consolidated Annual Performance Evaluation Report (“CAPER”) to the U.S. Department of Housing and Urban Development (“HUD”), and the purpose of the CAPER is to provide a detailed accounting of the City’s progress on CDBG funded activities for that given program year; and
WHEREAS, the City received $518,153 in CDBG funds for program year 2024-25 and continued to expend CDBG-Coronavirus (“CDBG-CV”) and has or will spend the funds in accordance with the City’s approved Action Plan, which the City Council approved in May 2024.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE FOREST AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct and are incorporated herein and made an operative part of this Resolution.

SECTION 2. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the CEQA Guidelines, as the activity is covered by the general rule that 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.

SECTION 3. The City of Lake Forest prepared a CAPER for program year 2024-25 and made it available for public review and comment for 15 days prior to Council review.

SECTION 4. The City of Lake Forest City Council reviewed the CAPER at a duly noticed public meeting held on September 16, 2025, and provided the opportunity for public comment.

SECTION 5. The City of Lake Forest City Council hereby approves the City’s 2024-25 CAPER on September 16, 2025.

SECTION 6. If any provision of this Resolution is held invalid, the remainder of this Resolution shall not be affected by such invalidity, and the provisions of this Resolution are severable.

SECTION 7. This Resolution shall become effective upon its adoption.

SECTION 8. The Mayor shall sign this Resolution and the City Clerk shall certify the adoption thereof.

PASSED, APPROVED AND ADOPTED this 16th day of September 2025 by the following vote, to wit:

SCOTT VOIGTS
MAYOR
ATTEST:

THY MERRITT,

ACTING CITY CLERK
APPROVED AS TO FORM:

MATTHEW E. RICHARDSON

CITY ATTORNEY

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 16th day of September 2025, by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_____________________________

THY MERRITT,

ACTING CITY CLERK

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
DEPARTMENT: City Manager
SUBJECT:

ANNUAL REVIEW OF DEVELOPMENT AGREEMENTS
RECOMMENDED ACTION(S):

1. Conduct the annual review of Development Agreements between the City and the following parties:
a. USA Portola Properties, LLC (“Baldwin”);
b. Lennar Homes (“Lennar”);
c. Toll Brothers West, Inc. (“Toll Brothers”)

2. Find that Baldwin, Lennar, and Toll Brothers are each in good faith compliance with its respective Development Agreements.

EXECUTIVE SUMMARY:

State law and the terms of the City’s Development Agreements ("DAs") require the City to conduct an annual review of active DAs for compliance with respective terms and conditions. "Good faith compliance" is established if the owner complies with every term and condition of its DA. In conjunction with the City Attorney's Office, staff reviewed each of the DAs relative to the activity that occurred during the previous fiscal year to assess compliance. This report also provides a summary of the development activities associated with each property owner through Fiscal Year (“FY”) 2024-25. After conducting a review of each DA, staff recommend the City Council find each property owner to be in good faith compliance with the terms of their respective agreement.

The DAs enable the City to collectively seek reimbursement from the landowners for all costs associated with the annual review. The cost associated with the annual review and due to the City is divided proportionately among the developers. Staff will provide each of the developers with a letter indicating the individual pro-rata share.

BACKGROUND:

Under Government Code Section 65865.1, the City must conduct an annual review of its DAs. During the review period, a property owner is required to

establish good faith compliance with the terms and conditions of their DA. If the City Council finds and determines that an owner is not in good faith compliance, the City may terminate or modify the DA.

The City Council approved DAs with property owners in the Opportunities Studies Area dating back to 2008. Since 2009, the City Council has conducted annual reviews of active DAs. During each of these reviews, the City Council found that each firm has been in good faith compliance with its respective DA requirements and obligations. Table 1 outlines completed developments and corresponding final DA reviews. Those listed below are no longer subject to the Annual DA Review.

Table 1: Completed Developments
Developer Final Development Agreement
Review
KB Homes (Whisler Trust DA) 2013
Brookfield 2016
Trumark 2018
Shea/Baker Ranch Associates 2019
Toll Brothers (Parkside) 2019
Meritage Homes 2019
KB Homes (Portola Center Project) 2022
Landsea 2023
Shea Homes 2024
DISCUSSION:

This report includes the annual review of DAs active during FY 2024-25. The DAs require that the City notify the respective owners in writing at least 60 days prior to the date scheduled for annual review. Staff provided written notice of annual review to property owners on June 9, 2025. This DA review includes the following developers and related development projects:

Portola Center – Baldwin
Serrano Summit – Lennar
The Meadows – Toll Brothers
Current development is in various stages, and the requirements of each DA vary based on site-specific conditions or other timing factors associated with each development project. The attached matrix summarizes each development project for FY 2024-25 (Attachment). The following narrative outlines each development project and the total number of units and permits issued through FY 2024-25.

A. Portola Center - Baldwin
Staff found the developers of Portola Center in compliance with the DA. Portola Center totals nearly 196 acres, bifurcated by Glenn Ranch Road east to west and Saddleback Ranch Road north/Portola Oaks Drive south. The City Council previously approved the development of single-family and multi-family homes, a mixed-use building with senior affordable apartments and commercial retail space, public and private neighborhood parks, and public trails at Portola Center.

All single-family homes in Portola Center South have been constructed and sold.

All but one lot of single-family homes in Portola Center Northwest have been constructed and sold.

Single-family units in Portola Center Northeast continue to be constructed. The mixed-use project consisting of senior affordable apartments and retail commercial space in Portola South completed construction last year.

Portola Center is generally separated into the three planning areas illustrated in Table 2 below.

Table 2: Portola Center Planning Areas
Planning Area Developer Number/Type of
Units Status
Portola Center
Northwest
Baldwin 81 single-family
units
81 permits issued
to date
Portola Center
Northeast
Baldwin 223 single-family
units
125 permits
issued to date
Portola Center South
Areas R-3, R-5, R-
6, and R-7
Landsea 230 single-family
units and 251
multi-family
condominiums
(total of 481 units)
Construction
complete, project
closed out
Area 4 KB Homes 83 single-family
units
Construction
complete, project
closed out
Senior Affordable
Apartments/Retail
Baldwin
(Community
Housing Works)
Mixed-use
development
comprised of 57
affordable one-
bedroom
apartments for
Construction
complete

Planning Area Developer Number/Type of
Units Status
senior
citizens, one
apartment for an
on-site manager,
and 10,000 square
feet
of commercial
retail
space.

Permit Status FY 2024-25:

Of the 362 total units approved for development by Baldwin, 263 units have either been built or are under construction, as follows:
• Portola Center Northwest (The Oaks): Baldwin has been issued 81 of its 81 single-family permits.
• Portola Center Northeast (The Oaks): Baldwin has been issued 125 of the 223 total single-family units approved.
• Portola Center South (senior affordable apartments/retail): Baldwin worked with affordable housing developer, Community Housing Works, to construct the senior affordable apartments and retail space. Construction of the 57 affordable senior apartments and one-market-rate unit, along with 10,000 square-feet of retail commercial on the first floor, is complete.

B. Serrano Summit – Lennar
Lennar has completed construction of all 537 units. Once the acceptance of streets is satisfied, the project will be considered complete and no further review would be required in future years. Staff found Lennar in compliance with its DA.

C. The Meadows – Toll Brothers
The Meadows is a 122-acre master planned development located at the southeast corner of Rancho and Bake Parkways. The development was approved by the City Council in 2020, allowing up to 776 units, a school site, parks, and open space. However, in March 2023, Saddleback Valley Unified School District (“SVUSD”) declined the school site. The developer has approval for 57 single-family residential units on the site. Accordingly, staff issued 38 permits for this area, a new neighborhood, The Sequoias.

Staff found Toll Brothers in compliance with its DA.

Escalation of City Fees and Credits
Under the DAs, the City is required to apply a fee escalator to the costs of specified City fees and credits on July 1 of each year. The DA between Baldwin and the City specifies the annual adjustment is based on the ENR Building Cost Index for the Los Angeles Area. The annual adjustment, beginning July 1, 2025, is 11.1 percent. The DA between Toll Brothers and the City specifies the annual adjustment is based upon the change in the Consumer Price All Urban Index.

The change beginning July 1, 2025, is 2.7 percent for Toll Brothers.

Subject to the City Council's final determination that the developers are in compliance with their respective DAs, staff would provide each landowner with a letter confirming the City's completion of the annual review process. In addition, the DAs require developers to share in the cost of conducting the annual review.

For this review period, the cost of the DA review totaled approximately $848. Staff will calculate each developer's pro-rated share based upon the total number of units approved within each DA and bill this amount to the developers.

FISCAL IMPACT:

There is no fiscal impact to the City associated with the review of the DAs. As specified in the DAs, the landowners will reimburse the City for costs associated with the preparation of the DA review. The reimbursement would be divided proportionately among the current developers.

ATTACHMENTS:

Development Agreement Matrix
Initiated By: Adrian Grijalva, Economic Development/Housing Manager Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager

ATTACHMENT

Development Developer Agreement
Date
Units Approved
in DA
Actual Units Planned by
Developer
Permits Issued
through FY 2024-25
In
Compliance?
Comments
Portola Center USA Portola
Properties, LLC
(Baldwin &
Sons)
8/1/2008 308 304 206 Yes Portola Center Northeast - 223 approved single- family homes. Developer has been issued 125
permits to date. The remaining area continues to
be graded and prepared for development.

Portola Center Northwest - The Developer has
been issued 81 permits and the Northwest
portion of the project is nearing completion.

Serrano Summit Lennar Homes 9/1/2017 608 537 537 Yes Construction is complete. Once the acceptance of streets is satisfied, the project will be
considered complete and no further review
would be required in future years.

The Meadows Toll Brothers 1/21/2020 675 611 577 Yes All five single-family neighborhoods in The Meadows are actively under construction, as are
the five mini parks, two community parks, and
private recreation center.

Development Agreement ("DA") Matrix: Fiscal Year 2024-25

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
DEPARTMENT: Finance
SUBJECT:

RESOLUTION UPDATING A CREDIT CARD TRANSACTION FEE
RECOMMENDED ACTION(S):

Adopt a Resolution Entitled: A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA, UPDATING A CREDIT CARD

TRANSACTION FEE
EXECUTIVE SUMMARY:

The City Council has directed staff to periodically review user and regulatory fees within the City’s Master Fee Schedule (“MFS”). The most recent update of the MFS occurred in April 2025. The City has an existing credit card transaction fee.

The proposed update to the credit card transaction fee is due to changes in the costs incurred by the City from third-party vendors.

The proposed Resolution (Attachment 1), if adopted, will update the credit card transaction fee from 3% to “Direct Pass-Through to Vendor,” which will go into effect upon adoption of the Resolution, and will update a section of the MFS (Attachment 2). The purpose of this change is to enhance the recovery of City costs to support fiscal sustainability and continuity of service levels.

BACKGROUND:

The City maintains a schedule of User and Regulatory Fees identifying services provided by the City and corresponding fees for service. On May 7, 2024, following the completion of a comprehensive user and regulatory fee schedule, the City Council approved the updating of the City’s MFS of user and regulatory fees, charges, and deposits for various City services. The fees adopted were based on the established fee policy that identifies general cost recovery targets for various services. Subsequently, on April 15, 2025, the City Council approved an annual update of the MFS which incorporated minor, incremental changes to the fees.

DISCUSSION:

Staff review the fee schedule annually. Staff typically perform a comprehensive cost of service study of the fees every three to five years and update the fee schedule in the interim years between the comprehensive studies. These changes during interim years help to apply inflationary adjustments and to periodically establish and update fees to address changes in services and costs that arise throughout the year. The City Council adopted an interim year update in April 2025.

Staff was informed of upcoming changes to the credit card transaction fees charged by the City’s third-party processing vendors under the updated contract.

Staff recommend the City Council adopt a Resolution adjusting the City’s transaction fees to align with the revised costs established by the vendors (Attachment 1). The proposed fee change is as follows:

 Credit Card Transaction / E-Check Fee - change from “3%” to “Direct Pass-Through to Vendor” (Attachment 2)

If adopted by the City Council, this fee would become effective upon the adoption of the Resolution. Other than the updating of the credit card transaction fee stated above, there are no changes proposed to the MFS for the user and regulatory fees. The intent of these adjustments is to reflect the change in costs incurred by the City from third-party vendors to process credit card transactions.

The California Environmental Quality Act (“CEQA”) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The approval of the resolution meets the above criteria and is not subject to CEQA, and therefore requires no additional environmental review.

FISCAL IMPACT:

There is no fiscal impact to the City based upon the recommended action.

Recalibration of the credit card transaction fee provides an offset to the change in costs rather than a source of funding for expanded service levels, thus there is no incremental revenue expected.

ATTACHMENTS:

1. City Council Resolution No. 2025-

2. Proposed Change to the Credit Card Transaction Fee

Initiated By: Amy Lewis, Assistant Director of Finance
Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager

ATTACHMENT 1

RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAKE FOREST, CALIFORNIA, UPDATING A

CREDIT CARD TRANSACTION FEE
WHEREAS, under the police power granted by Article XI, Section 7 of the California Constitution, cities may impose fees, charges, and rates for certain municipal services; and
WHEREAS, it is the intention of the City Council that these fees, charges, and deposits shall cover up to, but not exceed, the estimated reasonable cost of providing the service for which the fee is charged; and
WHEREAS, When the City accepts payment of fees via credit card, a transaction processing fee applies. The City desires to update the existing Credit Card Transaction Fee (the “Fee”) to recover the reasonable costs incurred by the City associated with credit card payment transaction processing.

WHEREAS, based upon the evidence provided, the City Council hereby determines the Fee established in Exhibit "A", attached hereto, and incorporated herein reasonably covers, but does not exceed, the reasonable cost of providing the service for which the Fee is charged; and

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

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

SECTION 1. The Recitals provided above are true and correct and are hereby incorporated into this Resolution.

SECTION 2. The Fee does not exceed the City’s reasonable costs associated with accepting and processing credit card payments.

SECTION 3. The Fee will be incorporated into the City’s Master Fee Schedule so that it can be periodically examined and adjusted, as necessary.

SECTION 4. The schedule of fees and fines attached to this Resolution as Exhibit "A", which is incorporated herein by reference, is hereby approved and adopted. Pursuant to Lake Forest Municipal Code Section 3.03.030, a supermajority, or four-fifths of the City Council have approved the adoption of the Fee provided in Exhibit "A". Upon adoption of this Resolution, the adopted Fee shall be effective upon the adoption of the Resolution and shall remain in effect until amended by the City Council.

SECTION 5. The updated Fee shall be incorporated into the City’s existing Master Fee Schedule. Incorporating this Fee into the fee schedule will allow for the Fee to be considered with future comprehensive user and regulatory fee updates. The City’s existing master fee schedule is amended as expressly provided by this resolution but shall otherwise remain in effect.

SECTION 6. The documents and materials associated with this Resolution that constitute the record of proceedings on which these findings are based are located at Lake Forest City Hall, 100 Civic Center Drive, Lake Forest, California 92630. The City Clerk is the custodian of the record of proceedings.

SECTION 7. The City Clerk shall attest 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 16th day of September 2025 by the following vote, to wit:

_____________________

SCOTT VOIGTS
MAYOR
ATTEST:

____________________

THY MERRITT

ACTING CITY CLERK
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, 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 16 th day of September 2025 by the following vote, to wit:

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

_____________________

THY MERRITT

ACTING CITY CLERK

Exhibit A

ATTACHMENT 2

City of Lake Forest
Credit Card Transaction Fee
Current Fee Proposed Fee Charge Basis Note
1 Credit Card Transaction / E-Check Fee 3% Direct pass-through to vendor Percent of Fees Paid / Vendor Fee [a] Activity Description
[a] Fee only applies when vendor collects a transaction fee for credit card or e-check processing.

CITY COUNCIL AGENDA REPORT
MEETING DATE: 9/16/2025
DEPARTMENT: Community Development
SUBJECT:

EXTENSION OF AN URGENCY ORDINANCE REGARDING A TEMPORARY

MORATORIUM ON MASSAGE ESTABLISHMENTS
RECOMMENDED ACTION(S):

Adopt an Urgency Ordinance entitled: AN EXTENSION OF AN URGENCY

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST

REGARDING A TEMPORARY MORATORIUM ON MASSAGE
ESTABLISHMENTS FOR 10 MONTHS AND 15 DAYS PENDING STUDY AND

ADOPTION OF REGULATORY AND ZONING STANDARDS AND
DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA.

EXECUTIVE SUMMARY:

On August 19, 2025, the City Council adopted Ordinance No. 379, imposing a moratorium on the establishment of businesses offering massages. Pursuant to Government Code Section 65858, the moratorium will expire on October 3, 2025, 45 days after it was adopted. However, Section 65858(a) allows the City to extend the moratorium for 10 months and 15 days if the City needs additional time to study and adopt regulatory and zoning standards for massage establishments.

Based on the need to further study and adopt appropriate regulations, staff recommend the City Council adopt an ordinance to extend the moratorium for 10 months and 15 days.

BACKGROUND:

Under the California Constitution and pursuant to its police powers, the City is charged with protecting the health, safety, and welfare of its citizens. California Government Code Section 51030 et seq. and Business & Professions Code Section 16000 et seq. also authorizes the City to regulate massage establishments in alignment with state law. Pursuant to that authority, on August 19, 2025, the City Council adopted Ordinance No. 379, imposing a temporary moratorium on the establishment of businesses offering massages. The moratorium was enacted under the authority of Government Code Section 65858 to allow the City time to study and potentially revise its regulatory framework for

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massage establishments. There are currently 18 massage establishments operating in Lake Forest.

The initial moratorium is scheduled to expire on October 3, 2025, 45 days after adoption. Government Code Section 65858(a) permits the City Council to extend the moratorium for an additional period of 10 months and 15 days, provided that the City continues to actively pursue the development of appropriate regulations.

DISCUSSION:

The City currently has a number of massage establishments operating within its jurisdictional boundaries. While the majority of these businesses operate in a safe and lawful manner, there have been documented cases of establishments that are:
• Operating without a valid Massage Establishment License; • Failing to comply with City zoning and operational requirements; and/or • Engaging in illicit activities, including prostitution.

In response to these concerns, the City Council adopted Ordinance No. 379 on August 19, 2025, establishing a 45-day moratorium on the establishment of new massage businesses. This moratorium, set to expire on October 3, 2025, was enacted to allow City staff time to study the issue and develop appropriate regulatory and zoning responses.

During the initial moratorium period, staff began evaluating the scope of the problem and exploring potential zoning and regulatory solutions. The temporary pause on new establishments has helped prevent further proliferation of non- compliant businesses while this work is underway.

Currently, there are no pending applications for new massage establishments on file. City staff continues to issue renewal notices to currently licensed establishments and is processing those renewals in accordance with applicable code requirements. Staff also provide prospective massage establishment applicants with information regarding the existing moratorium.

To ensure sufficient time to complete this process, staff recommends that the City Council extend the moratorium pursuant to Government Code Section 65858(a) an additional 10 months and 15 days, through August 18, 2026. This extension will provide the City with the necessary time to:
• Conduct a comprehensive review of existing massage establishment regulations;
• Evaluate best practices from other jurisdictions;

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• Assess potential state legislation impacting the regulation of massage and personal care businesses;
• Engage stakeholders, including business owners, public safety personnel, and community members; and
• Draft and present updated zoning and regulatory standards for Council consideration.

Pursuant to Government Code Section 65858(a), the extension of the moratorium requires a noticed public hearing in accordance with Section 65090 and adoption of an urgency ordinance by a four-fifths vote of the City Council. If adopted, the urgency ordinance will remain in effect through August 18, 2026.

In accordance with Government Code Section 65858, the moratorium may be extended one final time for a period of one (1) year, following the current proposed extension. If the City Council elects to pursue this option, the moratorium would remain in effect through August 18, 2027. This final extension would provide additional time, if needed, to complete the adoption and implementation of comprehensive zoning and regulatory standards for massage establishments. As with the current extension, a noticed public hearing and a four-fifths vote of the City Council would be required for adoption.

This agenda item also includes a report that documents the measures that the City has taken to alleviate the nuisance issues that led to the initial moratorium. (Attachment 2) For additional background, please refer to the City Council Agenda Report of August 19, 2025 (Attachment 3).

ENVIRONMENTAL
This moratorium extension 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, the extension of an urgency ordinance will extend the moratorium on massage establishments. This action will not 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 the moratorium, 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.

This is a request to extend the urgency ordinance adopted by City Council on

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August 19, 2025. The City is studying the negative impacts caused by existing massage establishments and considering possible revisions to the City’s regulatory and zoning standards to address those impacts. City staff’s recommendation is for the City Council to extend the moratorium for 10 months and 15 days because the City requires additional time to complete its study and revisions to regulatory and zoning standards. Section 65858(a) of the California Code allows the extension of an existing ordinance providing for a moratorium after notice pursuant to Section 65090 and a public hearing. These actions do not cause a direct or reasonably foreseeable indirect physical change in the environment because such actions do not authorize or prompt any development or physical changes to the environment. Therefore, this moratorium does not constitute a project as defined by CEQA and no further action is therefore required.

This moratorium extension also qualifies for the commonsense 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 has no possibility to have a significant effect on the environment because such actions do not authorize or prompt any development or physical changes to the environment. As a result, it is not subject to CEQA.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

1. Proposed Urgency Ordinance

2. Progress Report, September 16, 2025

3. City Council Agenda Report, August 19, 2025

4. Urgency Ordinance No. 379
Initiated By: Amy Stonich, AICP, Assistant Director of Community Development
Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager

55136.00000\44149409.1
-1-
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3 ATTACHMENT 1

55136.00000\44149409.1
-2-
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3 URGENCY ORDINANCE NO. ________

AN EXTENSION OF AN URGENCY ORDINANCE OF

THE CITY COUNCIL OF THE CITY OF LAKE FOREST

REGARDING A TEMPORARY MORATORIUM ON
MASSAGE ESTABLISHMENTS FOR 10 MONTHS AND
15 DAYS PENDING STUDY AND ADOPTION OF

REGULATORY AND ZONING STANDARDS AND

DETERMINING THE ORDINANCE TO BE EXEMPT

FROM CEQA
WHEREAS, pursuant to Cal. Const. Art. XI, Sec. 7 and under the City’s general police powers, the City of Lake Forest (“City”) is empowered and charged with responsibility for the health, safety, and welfare of its citizens; and WHEREAS, the City protects the health, safety, and welfare of the community through numerous avenues, including by establishing and enforcing zoning, licensing and health and safety regulations on specified commercial activities; and WHEREAS, the City is authorized by State law, including, without limitation, Government Code Section 51030 et seq. and Business & Professions Code Section 16000 et seq. to regulate massage establishments; and
WHEREAS, such regulations include Chapter 5.07 of the Lake Forest Municipal Code (“LFMC”), which contains the licensing requirements and operational standards for massage establishments in the City; and
WHEREAS, in addition to the regulations provided by LFMC Chapter 5.07, massage establishments also require a use permit to be approved by the Planning Commission, pursuant to LFMC Chapter 9.184, in order to lawfully operate; and WHEREAS, despite the above regulatory framework, in recent years, the City has experienced issues related to illicit sexual activity and suspected prostitution at businesses offering massage services; and
WHEREAS, between 2022-2024, the Orange County Sheriff’s Department (“OCSD”) conducted investigations at massage establishments across the City.

According to law enforcement reports, massage therapists attempted to engage in illicit sexual activity with undercover investigators at four establishments: 23803 El Toro Road, 22706 Aspan Street, Unit 503, 22855 Lake Forest Drive, Suite E, and 23401 El Toro Road, Suite 100. These incidents resulted in, among other things, the City denying massage business license renewals, issuing administrative citations and police citations, and revoking a massage-related use permit at 23803 El Toro Road; and WHEREAS, the above illegal activity resulted in significant public expense including code enforcement inspections, law enforcement undercover operations, and

55136.00000\44149409.1
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3 administrative and legal review and enforcement actions. These illegal activities diverted resources from other pressing City needs; and
WHEREAS, massage establishments that offer illicit sexual activity pose an immediate and significant threat to the health, safety and welfare of the community.

Among other things, these impacts include the potential for: (1) injury and abuse to patrons being solicited for unlawful services, and (2) increased opportunities for prostitution activity and human trafficking of workers by virtue of the secretive nature associated with offering unauthorized and undisclosed services; and WHEREAS, pursuant to Government Code Sections 36937 and 65858, the City Council adopted an interim urgency ordinance, Ordinance No. 379, on August 19, 2025, establishing a temporary moratorium on massage establishments to allow the City the opportunity to research and select the best course of action to protect the public safety, health, and welfare; and
WHEREAS, pursuant to Government Code Section 65858, Ordinance No. 379 expires after 45 days, on October 3, 2025. During the initial moratorium period, staff began evaluating the scope of the impacts of massage establishments, engaging stakeholders, and exploring potential zoning and regulatory solutions; and WHEREAS, City staff, in collaboration with the Sheriff’s Department and the City Attorney’s office, requires additional time to further gather data about the adverse impacts of massage establishments that provide illicit services, and to research, study, and consider ways to amend the City’s regulatory process and the Lake Forest Municipal and Zoning Codes to protect the public health and safety and reduce illegal activities occurring at these businesses; and
WHEREAS, the City Council desires to extend its temporary moratorium on the establishment of new massage businesses within the City for an additional 10 months and 15 days, in accordance with Government Code Section 65858; and WHEREAS, all legal prerequisites to the adoption of this urgency ordinance have occurred.

NOW, THEREFORE, the City Council of the City of Lake Forest does ordain as follows:

Section 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. CEQA. The City Council finds that this ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The City Council further finds, under Title 14 of the California Code of Regulations, section 15061(b)(3) that this interim urgency ordinance is

55136.00000\44149409.1
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3 nonetheless exempt from the requirements of CEQA. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Section 3. Urgency Findings. This Ordinance is adopted under the provisions of Government Code Sections 36937 and 65858. The City Council finds that massage establishments as described herein pose significant and urgent threats to the health, safety and welfare of the community as follows:
a. In recent years, the City has experienced issues related to illicit sexual activity and suspected prostitution at businesses offering massage services. b. Between 2022-2024, the Orange County Sheriff’s Department (“OCSD”) conducted investigations at massage establishments across the City. According to law enforcement reports, massage therapists attempted to engage in illicit sexual activity with undercover investigators at four establishments: 23803 El Toro Road, 22706 Aspan Street, Unit 503, 22855 Lake Forest Drive, Suite E, and 23401 El Toro Road, Suite 100.

These incidents resulted in, among other things, the City denying massage business license renewals, issuing administrative citations and police citations, and revoking a massage-related use permit at 23803 El Toro Road.
c. The above illegal activity resulted in significant public expense including code enforcement inspections, law enforcement undercover operations, and administrative and legal review and enforcement actions. These illegal activities diverted resources from other pressing City needs.
d. Massage establishments that offer illicit sexual activity pose an immediate and significant threat to the health, safety and welfare of the community. Among other things, these impacts include the potential for: (1) injury and abuse to patrons being solicited for unlawful services, and (2) increased opportunities for prostitution activity and human trafficking of workers by virtue of the secretive nature associated with offering unauthorized and undisclosed services.

Section 4. Directive. The City Council hereby directs and orders that, during the time that this urgency ordinance is in effect, the City will not approve or issue any use permit, variance, building permit, or other applicable entitlement for the following: New massage establishments, or the enlargement of existing massage establishments. During the moratorium period, any massage establishment that has obtained a use permit will be allowed to obtain a license and building permit to establish. Existing massage businesses may continue to apply for licenses or license renewals, and the City may continue to make final decisions on those applications.

Section 5. Applications. The City will continue to accept and process applications for uses prohibited by this moratorium if so legally required. Any application received and processed during the moratorium shall be processed at the applicant’s sole cost and risk with the understanding that no permit, approval or other entitlement for a use covered by

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3 Section 4, above, may issue while this moratorium or any extension thereof is in effect.

Notwithstanding anything to the contrary, the City will process and make final decisions on massage establishment license applications and renewals thereof during the moratorium period or any extension thereof.

Section 6. Effective Date. This Urgency Ordinance shall be effective immediately, and shall remain in effect for 10 months and 15 days from its adoption, unless earlier repealed, terminated, or extended.

Section 7. Report. No less than 10 days prior to the scheduled expiration or termination of this Ordinance, staff shall issue a report to the City Council on the progress of its study and on determinations for how the City should proceed, insofar as conclusions have been drawn.

Section 8. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.

Section 9. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at Lake Forest City Hall, 100 Civic Center Dr., Lake Forest, California 92630.

Section 10. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, 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.

PASSED, APPROVED, AND ADOPTED this 16th day of September 2025 by the following vote, to wit:

SCOTT VOIGTS
MAYOR
ATTEST:

THY MERRITT

ACTING CITY CLERK
APPROVED AS TO FORM:

MATTHEW E. RICHARDSON

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3 CITY ATTORNEY

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, _______________, Acting City Clerk of the City of Lake Forest, do hereby certify that the foregoing Urgency Ordinance No. ____ was duly introduced and immediately adopted at a regular meeting of the City Council on the 16th day of September 2025, by the following roll-call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

THY MERRITT

ACTING CITY CLERK

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ATTACHMENT 2

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MEMORANDUM
DATE: SEPTEMBER 16, 2025
TO: CITY COUNCIL
FROM: MATTHEW RICHARDSON

CITY ATTORNEY
SUBJECT: PROGRESS REPORT:

MEASURES TAKEN TO ALLEVIATE CONDITIONS
WHICH LED TO ADOPTION OF ORDINANCE NO. 379,

AN URGENCY ORDINANCE ESTABLISHING A

MASSAGE ESTABLISHMENT MORATORIUM
City Council
Meeting Date: September 16, 2025
Time: 6:30 PM
Location: Lake Forest City Hall, Council Chambers
100 Civic Center Dr., Lake Forest, CA 92630
This report is submitted in accordance with Government Code Section 65858(d), which requires a written report describing the measures taken to alleviate the nuisance conditions that led to the adoption of a temporary moratorium prior to any extension of that moratorium.

On August 19, 2025, the Lake Forest City Council adopted Ordinance No. 379, establishing a 45-day moratorium on the establishment of new massage businesses and the transfer of existing massage establishment licenses. The moratorium was enacted in response to growing concerns regarding:
• An increase in massage establishments operating without a valid Massage Establishment License;
• Noncompliance with City zoning and operational standards; • Reports of illicit activities, including prostitution and human trafficking.

Since the adoption of Ordinance No. 379, City staff has undertaken the following efforts to study and address these concerns:

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1. Review of Existing Regulations: Staff is engaging in a comprehensive review of Lake Forest Municipal Code (LFMC) Chapter 5.07, as well as other current municipal code provisions related to massage establishments.

2. Research of Best Practices: Staff has examined regulatory frameworks used by other California cities to manage massage businesses effectively.

3. Stakeholder Engagement: Preliminary outreach has begun with law enforcement, business owners, and community members to gather input on potential regulatory improvements.

4. Zoning Analysis: Staff is evaluating zoning strategies to better manage the location and density of massage establishments.

5. Coordination with Legal Counsel: The City Attorney’s Office has been consulted to ensure any proposed regulations are legally defensible and consistent with state law.

These efforts are ongoing and, due to the complexity of the matter, require additional time to complete. Therefore, staff recommends that the City Council adopt an urgency ordinance extending the moratorium for an additional ten (10) months and fifteen (15) days, through August 18, 2026.

While this study is being conducted and potential new ordinances and/or regulations are being researched, considered, and prepared, the City finds it critical to extend the original moratorium for an additional 10-months and 15- days.

CONTACT INFORMATION
For questions or additional information, please contact:

Amy Stonich, AICP
Assistant Director of Community Development
(949) 461-3479
[email protected]

ATTACHMENT 3

CITY COUNCIL AGENDA REPORT
MEETING DATE: 8/19/2025
DEPARTMENT: Community Development
SUBJECT:

URGENCY ORDINANCE ESTABLISHING A TEMPORARY MORATORIUM ON

MASSAGE ESTABLISHMENTS
RECOMMENDED ACTION(S):

1. Find and determine that the proposed urgency ordinance is not a “project” within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines (Title 14 of the California Code of Regulations) and is exempt from the requirements of CEQA under Section 15061(b)(3) of the CEQA Guidelines; and

2. Adopt Urgency Ordinance No. ____, entitled:

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE

FOREST ESTABLISHING A TEMPORARY MORATORIUM ON MASSAGE

ESTABLISHMENTS PENDING STUDY AND THE PREPARATION OF AN
UPDATE TO THE CITY’S MUNICIPAL CODE AND ZONING CODE AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA.

EXECUTIVE SUMMARY:

In recent years, law enforcement and code enforcement officers have discovered evidence of illicit sexual activity occurring at massage establishments in the City of Lake Forest (“City”). These activities pose significant impacts to public health, safety, and welfare.

Against this backdrop, an urgency ordinance is proposed to temporarily prohibit the processing of use permits for massage establishments throughout the city.

Specifically, during the moratorium, proposed massage establishments could not file an application for a use permit to establish within the city, and existing massage establishments could not expand. However, any massage establishment that has obtained a use permit would be allowed to obtain a license and a building permit to establish or continue operations.

The urgency ordinance is necessary to provide the City with sufficient time to study potential municipal and zoning code regulations to address the negative impacts of illegal activity at these and similar establishments.

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BACKGROUND:

Under the California Constitution and pursuant to its police powers, the City is charged with responsibility for the health, safety, and welfare of its citizens.

Pursuant to this authority, the City has adopted a framework to regulate massage uses within the city.

To establish a massage business, the Planning Commission must approve a use permit for the business location (Lake Forest Municipal Code (“LFMC”) section

9.72.090). If that approval is granted, then the permittee must obtain a massage establishment license, which is governed by LFMC Chapter 5.07. The City Manager reviews license applications and has the authority to approve or deny such requests in accordance with the City’s requirements.

Annually, each massage establishment is required to apply for renewal of its massage license. The renewal process is outlined in LFMC Chapter 5.07 and includes ground for non-renewal and revocation. The City also has the ability to perform inspections of any massage establishment to confirm ongoing compliance with all massage regulations.

As permitted by the City’s code, there are a number of massage businesses operating in the city. Those massage businesses that opened prior to adoption of the City’s regulatory scheme operate as legal nonconforming uses, while those that opened after adoption of the City ordinance operate pursuant to conditional use permits. As shown in the following graphic, the number of massage businesses operating in the city has fluctuated, with a high of 42 in 2019, and a low of 16 in 2024.

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Figure 1: Licensed Massage Establishments 2008-2025
The City currently has 18 massage establishments in operation. The location of each business is shown in the following graphic.

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Figure 2: Map of Licensed Massage Establishments by District (August 2025) ATTACHMENT 3

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Despite the City’s regulations, in recent years, the City has experienced issues related to illicit sexual activity at massage and similar establishments. Between 2022-2024, the Orange County Sheriff’s Department (“OCSD”) conducted investigations at massage establishments across the city. According to law enforcement reports, massage therapists attempted to engage in illicit sexual activity with undercover investigators at four establishments: 23803 El Toro Road, 22706 Aspan Street, Unit 503, 22855 Lake Forest Drive, Suite E, and 23401 El Toro Road, Suite 100. These incidents resulted in, among other things, the City denying massage business license renewals, issuing administrative citations and police citations, and revoking a massage-related use permit at 23803 El Toro Road.

These investigations also revealed that illegal massages and illicit sexual activity are no longer limited to businesses expressly offering massages. Working with OCSD, the City discovered that illegal activities are occurring at personal care businesses with private rooms, including day spas. This change in practice by those performing illegal massages is likely to avoid detection, in part because the City’s massage regulations do not currently cover these other types of businesses.

The above illegal activity resulted in significant public expense including code enforcement inspections and actions, law enforcement undercover operations, and administrative and legal review. These illegal activities diverted resources from other pressing City needs.

Massage and other establishments that offer illicit sexual activity pose an immediate and significant threat to the health, safety, and welfare of the community. Among other things, these impacts include the potential for: (1) injury and abuse to patrons being solicited for unlawful services, and (2) increased opportunities for prostitution activity and human trafficking of workers by virtue of the secretive nature associated with offering unauthorized and undisclosed services.

DISCUSSION:

Government Code Sections 36937 and 65858 authorize the City Council to adopt an interim urgency ordinance to protect public health, safety, and welfare.

Section 65858 specifically allows a temporary moratorium to prohibit any uses that may be in conflict with a contemplated zoning proposal that the City wishes to study.

The proposed interim urgency ordinance makes the requisite Government Code findings that there is an urgent need to protect the public health, safety, and welfare from illicit activities that occur at some massage establishments within ATTACHMENT 3

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the city. If adopted, it would immediately establish a 45-day moratorium. During this period, the City would not approve or issue any use permit, variance, building permit, or other applicable entitlement for new massage establishments or the enlargement of existing massage establishments. During the moratorium period, any massage establishment that has obtained a use permit would be allowed to obtain a license and building permit to establish the use. Existing massage businesses could continue to apply for licenses or license renewals, and the City could continue to make final decisions on those applications.

A 45-day moratorium would provide staff the time to gather data about the impacts of massage establishments, and to research, study, and prepare recommendations for the Council’s consideration regarding potential amendments to the City’s regulatory process and Zoning Code.

During the moratorium period staff would also study potential amendments to the Zoning Code related to personal care uses with private rooms, in an effort to prevent illicit activities at these businesses. Additionally, staff would study potential changes to the City regulatory scheme related to inspection processes and schedules, including studying the efficacy of mandating regular inspections on massage and other businesses. Because the practice of performing illegal massage at day spas and similar non-massage business is novel and currently outside of any regulatory scheme, staff will need time to consult with other agencies, and to review whether the city’s existing processes may be applied to these other types of businesses.

For the urgency ordinance to be effective, four-fifths (4/5) of the City Council must approve the ordinance. Thereafter, the ordinance would remain in effect for 45 days from its adoption (unless earlier repealed, terminated, or extended by the Council). Government Code section 65858 allows the City Council to extend a moratorium for 10 months and 15 days, and once more for one year. This means that a moratorium may be in place for a total of two years.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

1. Urgency Ordinance
Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager
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ATTACHMENT 4

URGENCY ORDINANCE NO. 379

AN URGENCY ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF LAKE FOREST ESTABLISHING A

TEMPORARY MORATORIUM ON MASSAGE

ESTABLISHMENTS PENDING STUDY AND THE

PREPARATION OF AN UPDATE TO THE CITY'S

MUNICIPAL CODE AND ZONING CODE AND

DETERMINING THE ORDINANCE TO BE EXEMPT

FROM CEQA
WHEREAS, pursuant to Cal. Const. Art. XI, Sec. 7 and under the City's general police powers, the City of Lake Forest (" City") is empowered and charged with responsibility for the health, safety, and welfare of its citizens; and WHEREAS, the City protects the health, safety, and welfare of the community through numerous avenues, including by establishing and enforcing zoning, licensing and health and safety regulations on specified commercial activities; and WHEREAS, the City is authorized by State law, including, without limitation, Government Code Section 51030 et seq. and Business & Professions Code Section 16000 et seq. to regulate massage establishments; and
WHEREAS, such regulations include Chapter 5.07 of the Lake Forest Municipal Code (" LFMC"), which contains the licensing requirements and operational standards for massage establishments in the City; and
WHEREAS, in addition to the regulations provided by LFMC Chapter 5.07, massage establishments also require a use permit to be approved by the Planning Commission, pursuant to LFMC section 9.72.090, in order to lawfully operate; and WHEREAS, despite the above regulatory framework, in recent years, the City has experienced issues related to illicit sexual activity and suspected prostitution at businesses offering massage services; and
WHEREAS, between 2022-2024, the Orange County Sheriffs Department OCSD") conducted investigations at massage establishments across the City.

According to law enforcement reports, massage therapists attempted to engage in illicit sexual activity with undercover investigators at four establishments: 23803 EI Toro Road, 22706 Aspan Street, Unit 503, 22855 Lake Forest Drive, Suite E, and 23401 EI Toro Road, Suite 100. These incidents resulted in, among other things, the City denying massage business license renewals, issuing administrative citations and police citations, and revoking a massage - related use permit at 23803 EI Toro Road; and WHEREAS, the above illegal activity resulted in significant public expense including code enforcement inspections, law enforcement undercover operations, and 55136 00000.43579692.1
ATTACHMENT 4

administrative and legal review and enforcement actions. These illegal activities diverted resources from other pressing City needs; and
WHEREAS, massage establishments that offer illicit sexual activity pose an immediate and significant threat to the health, safety and welfare of the community.

Among other things, these impacts include the potential for: ( 1) injury and abuse to patrons being solicited for unlawful services, and ( 2) increased opportunities for prostitution activity and human trafficking of workers by virtue of the secretive nature associated with offering unauthorized and undisclosed services; and WHEREAS, pursuant to Government Code Sections 36937 and 65858, the City Council may adopt an interim urgency ordinance to protect the public safety, health, and welfare. Section 65858 specifically allows a temporary moratorium to prohibit any uses that may be in conflict with a contemplated zoning proposal that the City wishes to study; and
WHEREAS, City staff requires time to further gather data about the adverse impacts of massage establishments that provide illicit services, and to research, study, and consider ways to amend the City's regulatory process and the Lake Forest Municipal and Zoning Codes to protect the public health and safety and reduce illegal activities occurring at these businesses; and
WHEREAS, all legal prerequisites to the adoption of this urgency ordinance have occurred.

NOW, THEREFORE, the City Council of the City of Lake Forest does ordain as follows:

Section 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.

Section 2. CEQA. The City Council finds that this ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act CEQA") Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The City Council further finds, under Title 14 of the California Code of Regulations, section 15061(b)(3) that this interim urgency ordinance is nonetheless exempt from the requirements of CEQA. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Section 3. Urgency Findings. This Ordinance is adopted under the provisions of Government Code Sections 36937 and 65858. The City Council finds that massage establishments as described herein pose significant and urgent threats to the health, safety and welfare of the community as follows:
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a. In recent years, the City has experienced issues related to illicit sexual activity and suspected prostitution at businesses offering massage services. b. Between 2022-2024, the Orange County Sheriffs Department (" OCSD") conducted investigations at massage establishments across the City. According to law enforcement reports, massage therapists attempted to engage in illicit sexual activity with undercover investigators at four establishments: 23803 El Toro Road, 22706 Aspan Street, Unit 503, 22855 Lake Forest Drive, Suite E, and 23401 EI Toro Road, Suite 100.

These incidents resulted in, among other things, the City denying massage business license renewals, issuing administrative citations and police citations, and revoking a massage - related use permit at 23803 EI Toro Road.
c. The above illegal activity resulted in significant public expense including code enforcement inspections, law enforcement undercover operations, and administrative and legal review and enforcement actions. These illegal activities diverted resources from other pressing City needs.
d. Massage establishments that offer illicit sexual activity pose an immediate and significant threat to the health, safety and welfare of the community. Among other things, these impacts include the potential for: ( 1) injury and abuse to patrons being solicited for unlawful services, and ( 2) increased opportunities for prostitution activity and human trafficking of workers by virtue of the secretive nature associated with offering unauthorized and undisclosed services.

Section 4. Directive. The City Council hereby directs and orders that, during the time that this urgency ordinance is in effect, the City will not approve or issue any use permit, variance, building permit, or other applicable entitlement for the following: New massage establishments, or the enlargement of existing massage establishments. During the moratorium period, any massage establishment that has obtained a use permit will be allowed to obtain a license and building permit to establish. Existing massage businesses may continue to apply for licenses or license renewals, and the City may continue to make final decisions on those applications.

Section 5. Applications. The City will continue to accept and process applications for uses prohibited by this moratorium if so legally required. Any application received and processed during the moratorium shall be processed at the applicant's sole cost and risk with the understanding that no permit, approval or other entitlement for a use covered by Section 4, above, may issue while this moratorium or any extension thereof is in effect.

Notwithstanding anything to the contrary, the City will process and make final decisions on massage establishment license applications and renewals thereof during the moratorium period or any extension thereof.

Section 6. Effective Date. This Urgency Ordinance shall be effective immediately, and shall remain in effect for 45 days from its adoption, unless earlier repealed, terminated, or extended.
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Section 7. Report. No less than 10 days prior to the scheduled expiration of this Ordinance, staff shall issue a report to the City Council on the progress of its study and on determinations for how the City should proceed, insofar as conclusions have been drawn.

Section 8. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.

Section 9. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at Lake Forest City HaII, 100 Civic Center Dr., Lake Forest, California 92630.

Section 10. Severabilitv. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, 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.

PASSED, APPROVED, AND ADOPTED this 19th day of August 2 25 by the following vote, to wit:

SCOTT VOIGTS
MAYOR
ATTEST:

THY MERRITT

ACTING CITY CLERK
APPROVED AS TO FORM:

MATTHEW E. RICHARDSON

CITY ATTORNEY
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STATE OF CALIFORNIA

COUNTY OF ORANGE

CITY OF LAKE FOREST
SS
I, Thy Merritt, Acting City Clerk of the City of Lake Forest, do hereby certify that the foregoing Urgency Ordinance No. 379 was duly introduced and immediately adopted at a regular meeting of the City Council on the 19th day of August 2025, by the following roll - call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

COUNCIL MEMBERS: CIRBO, PEQUENO, TETTEMER, VOIGTS, YU
COUNCIL MEMBERS:

COUNCIL MEMBERS:

COUNCIL MEMBERS:
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THY MERRITT

ACTING CITY CLERK
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ATTACHMENT 4

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