Agenda packet — Lake Forest City Council, July 7, 2026 (part 7 of 7)

Although these office uses have been vacant for some time, it is not unreasonable to expect that they could have been re-occupied by any office tenant.

I recognize that any project deserves thorough environmental review, and I appreciate that the City is conducting a comprehensive evaluation through the environmental review process. While no development is entirely without impacts, I believe it is important to consider projects in context and based on facts. From what has been presented, this proposal appears to be a thoughtful reuse of an existing employment site that can provide jobs, improvements, and continued investment in our City.

Thank you for your consideration of my comments.

Regards,
Charlene So
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From: Connie Ding
To: Council
Cc: Pequeno, Robert; Cirbo, Doug; Voigts, Scott; Tettemer, Mark; Yu, Benjamin; Mansur, Jennifer Subject: The Fundamental Planning Question Before the City Council – IPT Enterprise Business Center Date: Thursday, July 2, 2026 8:17:53 AM
Dear Mayor and Members of the City Council,
Before voting on the IPT Enterprise Business Center, I respectfully ask the City Council to answer one fundamental planning question:

Has the City demonstrated, with substantial evidence, that a highintensity industrial project immediately adjacent to established residential neighborhoods is compatible with the community the City has chosen to build?
The Draft EIR states:
“The nearest sensitive receptors are residential uses located approximately 82 feet from the Project site’s eastern boundary.”
This is not an ordinary separation distance. At this proximity, compatibility —not simply regulatory compliance—should be the central issue before the Council.

Throughout the environmental review process, much attention has been given to whether individual environmental thresholds can be met.

However, meeting a numerical threshold does not necessarily establish that a project is compatible with its surroundings.

Residents do not experience environmental impacts one category at a time.

They experience the combined effects of truck traffic, operational noise, diesel emissions, lighting, and industrial activity every day. These impacts do not stop at a property line. They accumulate over time.

This is why cumulative impacts matter.

The City is not deciding whether one warehouse can operate on one parcel.

The City is determining the future character of the Enterprise Way corridor.

Each additional industrial approval increases the cumulative intensity of truck activity, loading operations, air emissions, noise, and other impacts experienced by nearby neighborhoods.

Today’s decision will help define the planning standard applied to future Item: 9
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projects along this corridor.

Another important issue remains unresolved: the future tenant is unknown.

Without knowing the tenant, the City cannot know the actual operational intensity, freight demand, materials handled, hours of operation, or longterm environmental impacts with certainty.

Unknown tenant should not mean unlimited future impacts.

If the City cannot identify the future tenant, then the City should establish enforceable limits on future operations. Any material increase in operational intensity beyond what was analyzed in the EIR should require additional environmental review and public notice before it is allowed.

This project also presents a significant land use compatibility issue.

For many years, the former Panasonic office campus functioned as a practical transition between industrial land and nearby homes. That transition no longer exists. Today, residential neighborhoods directly adjoin a project that permits warehouse, manufacturing, and industrial uses.

This changed land use pattern deserves renewed planning consideration.

The question is not whether industrial development belongs in Lake Forest.

It does.

The question is whether this particular industrial project belongs immediately adjacent to established residential communities under today’s conditions.

If the City concludes that this project remains compatible, I respectfully ask:

What substantial evidence supports that conclusion?
And if approximately 82 feet is considered an appropriate separation distance here, will the same planning principle be applied to future industrial projects located next to other residential neighborhoods throughout Lake Forest?
This decision extends beyond one project. It will shape the City’s planning precedent for years to come.

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For these reasons, I respectfully request that the City Council deny the project or direct that additional environmental review be completed.

If the Council nevertheless decides to approve the project, I respectfully request that it require substantial modifications, including reducing the project’s operational intensity, eliminating nighttime truck operations, strengthening enforceable operating conditions, restricting future tenant uses to those analyzed in the EIR, and requiring additional environmental review before any material operational changes are permitted.

Thank you for your time, your service, and your careful consideration of the long-term consequences of this decision.

Respectfully,
Lake Forest Resident
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From: Susan Zhao
To: Council
Cc: Pequeno, Robert; Cirbo, Doug; Voigts, Scott; Tettemer, Mark; Yu, Benjamin; Mansur, Jennifer Subject: URGENT: Formal Objection to the Proposed Large-Scale Warehouse Project Adjacent to the Meadows Community Date: Tuesday, June 30, 2026 9:18:41 PM
Dear Honorable Mayor and Members of the City Council,
I am writing to you as a deeply concerned resident of the Meadows community, a neighborhood of over 1,000 households. We are writing to formally lodge our strongest objection to the proposed large-scale warehouse project planned directly outside our community wall.

As elected officials, your fundamental duty is to listen to the voices of the residents who put their trust in you, ensuring that city development serves the public’s best interest rather than operating from an ivory tower, disconnected from the community's realities.

We are shocked and appalled that the City’s Planning Department would even consider allowing a high-impact warehouse to be built right next to an established residential area.

Our opposition is based on critical safety and livability concerns:

Severe Safety Hazards: The project is projected to generate over 15 heavy-duty trucks per hour. Having a constant stream of heavy-duty trucks operating 24/7 right outside our community walls poses an immediate and severe threat to the safety of our residents, especially children and the elderly.

Infrastructure & Traffic Congestion: Our local roads were never designed or engineered to handle the excessive weight and volume of heavy industrial truck traffic.

This will inevitably lead to gridlock, rapid road deterioration, and an increased risk of severe traffic accidents.

Environmental & Health Impacts: The noise, vibrations, and diesel exhaust from these heavy trucks will severely diminish our quality of life, pollute our air, and lead to long-term health issues for the 1,000+ families living here.

We urge the City Council and the Planning Department to prioritize the safety and well-being of your constituents over commercial interests. We demand full transparency regarding how this zoning or land-use change was permitted, and we request an immediate public hearing so that the residents of Meadows can present our case in person.

We look forward to your prompt response and your active intervention in this matter.

Sincerely,
Susan Zhao
Resident of the Meadows Community
My phone #
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/7/2026
DEPARTMENT: Community Development
SUBJECT:

LAKE FOREST MUNICIPAL CODE AMENDMENTS RELATED TO GROUP

HOMES, RESIDENTIAL CARE FACILITIES, AND BOARDING HOUSES RECOMMENDED ACTION(S):

Conduct first reading of an Ordinance Entitled: “AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING

VARIOUS SECTIONS OF THE LAKE FOREST MUNICIPAL CODE ALLOWING GROUP HOMES FOR THE BENEFIT OF THE DISABLED; AND FINDING THE

ACTION TO BE EXEMPT FROM CEQA UNDER STATE CEQA GUIDELINES §15060(c)(2), 15060(c)(3), AND 15061(b)(3).”
EXECUTIVE SUMMARY:

Based on recent court cases and federal and state laws, staff propose updating the Lake Forest Municipal Code (“LFMC”) related to group homes, which includes residential care facilities. The proposed Ordinance (Attachment 1) includes amendments to Title 5 (Business Regulations) and Title 9 (Zoning Code) of the LFMC related to group homes, residential care facilities, and boarding houses. The proposed Title 5 Amendments include the replacement of the existing provisions of Chapter 5.44 of the LFMC with a new chapter entitled “Group Homes.” The amendments would establish definitions, licensing procedures, operational standards, distancing requirements between group homes, renewal requirements, and enforcement mechanisms applicable to group homes operating within the City of Lake Forest (“City”). Title 9 amendments are necessary to ensure consistency. The proposed Title 9 Amendments include updating definitions, adding group homes as a permitted use in all zoning districts that allow residential uses, updating references related to LFMC Chapter

5.44, and more clearly prohibiting boarding houses from zoning districts that allow residential uses.

On May 7, 2026, the Planning Commission reviewed the proposed Title 9 Amendments and adopted a resolution (Attachment 2) recommending City Council approve the amendments. The Planning Commission report on the Zoning Code Amendment is included as Attachment 3. The proposed amendments to Title 5 and 9 are intended to ensure that disabled individuals are Item: 10
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afforded an equal opportunity to live in residential neighborhoods, while protecting the health, safety, and welfare of the community.

BACKGROUND:

For years, the State of California has imposed certain limits on local regulation of residential care facilities. Specifically, pursuant to Title 9 of the LFMC, the City must treat state licensed residential care facilities with six or fewer residents as a single-family residential use. In 2023, the City Council adopted LFMC amendments to address residential care facilities serving seven or more persons, as required by the Department of Housing and Community Development (“HCD”) in the City’s Housing Element Program 7. The LFMC amendments included amendments to Title 9 and the addition of LFMC Chapter 5.44 Residential Care Facilities in Title 5. Generally, the amendments allowed residential care facilities of seven or more persons in all residential zones, and established objective standards to promote approval, certainty and consistency with state and federal laws.

Based on recent court cases (Ohio House LLC v. City of Costa Mesa (9th Cir. 2024) 122 F.4th 1097, 1127) and consistent with federal and state laws (Federal Fair Housing Act Amendments of 1988, California Fair Employment Housing Act, and California’s Lanterman Developmental Disabilities Services Act), staff propose updating the LFMC related to group homes, which includes residential care facilities. The purpose of the update is to establish reasonable regulations to prevent overconcentration, while continuing to allow such facilities to operate within residential neighborhoods. Additionally, the proposed Ordinance would be consistent with the City’s General Plan Land Use Element and Housing Element policies and programs.

DISCUSSION:

The proposed Ordinance includes amendments to Title 5 (Business Regulations) and Title 9 (Zoning Code) of the LFMC related to group homes, residential care facilities, and boarding houses.

Proposed Title 5 (Business Regulations) Amendments
The proposed Ordinance replaces the existing provisions of Chapter 5.44 of the LFMC with a new chapter entitled “Group Homes.” The amendments would establish definitions, licensing procedures, operational standards, distancing requirements between group homes, renewal requirements, and enforcement Item: 10
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mechanisms applicable to group homes operating within the City. Key amendments to Title 5 include the following:

1. New Definitions
The proposed Ordinance adds twenty new definitions. Some of the key definitions to distinguish between different residential living arrangements are:
• Group Home;
• Residential Care Facility;
• Sober Living Home;
• Integral Facilities; and
• Single Housekeeping Unit.

These definitions aim to clarify which facilities are regulated under Chapter 5.44.

The term "group home" in the proposed Ordinance refers to a broad category of facilities. As outlined in Graphic 1, group homes can be categorized into two main types: those licensed by the State of California and those that are not.

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2. Establishment of a Group Home Licensing Program
The proposed Title 5 Amendments (Exhibit A of Attachment 1) create a new group home licensing program that would regulate group homes that are:
1) not state-licensed (indicated in green on Graphic 1); and 2) state-licensed facilities with seven or more residents located in multi-family residences.

Consistent with state law, the proposed Ordinance exempts state-licensed group homes serving six or fewer residents from the City licensing requirement. Homes operating as a true “single housekeeping unit,” as defined in LFMC, are also exempt from the licensing provisions. For example, a large extended family or group of roommates that meet all criteria under the definition may be considered a “single housekeeping unit.”
The proposed Ordinance creates a new City-administered licensing program for non-exempt group homes operating in all zoning districts that allow residential uses. Under the proposed regulations, all non-exempt group homes must obtain a City-issued group home license prior to operation. The Director of Community Development would be authorized to administratively approve licenses when all applicable standards are met.

The licensing process would include:
• Standardized application procedures;
• Submission requirements for operators and property owners; • Site plans and floor plans;
• Management plans and operational policies;
• Background checks for operators and associated business owners; and • Payment of application processing costs.

3. Operational Standards
The proposed Ordinance establishes operational requirements intended to increase safety for group home residents, maintain neighborhood compatibility, and ensure responsible management of group homes. Key operational standards include:
• Occupancy limitations based on the number of beds in homes with more than seven residents (only permitted in multifamily residences); • Requirement for an on-site house manager;
• Parking regulations;
• Emergency and security plans;
• Maintenance of management plans (which shall address: quiet hours, guest visitation hours and procedures, trash collection, nuisance reduction, protocols for neighbor complaints, smoking, etc.);
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• Compliance with building and fire codes; and
• Participation requirements for residents recovering from substance abuse.

The proposed Ordinance also prohibits “integral facilities,” defined as multiple group homes functioning collectively as one operation.

4. Distance Separation Requirement
The proposed Ordinance stipulates that a group home licensed by the City can only be established if it is located at least 650 feet away from any other legally established group home (both City-licensed and State-licensed). This distance is measured from the nearest property lines. The purpose of this requirement is to prevent overconcentration of group homes in residential neighborhoods and to avoid the institutionalization effects that could undermine the goals of group homes.

5. License Renewal and Revocation Procedures
Group home licenses would expire every two years unless renewed. Renewal applications would require updated operational information and compliance inspections.

The proposed Ordinance would also establish procedures for:
• Denial of license renewal;
• Reconsideration of denial requests;
• Revocation hearings;
• Transfer of ownership interests; and
• Enforcement actions for noncompliance.

These procedures provide due process protection for operators while allowing the City to address violations of the LFMC.

6. Existing Group Homes
Existing, non-exempt group homes would be required to apply for a City license within 90 days of the proposed Ordinance’s effective date. The proposed Ordinance also provides the Director of Community Development discretion to grant additional time for compliance in cases involving existing lease obligations or demonstrated financial hardship.

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Proposed Title 9 (Zoning Code) Amendments
The proposed Title 5 Amendments would require amendments to Title 9, to ensure consistency in the LFMC. The proposed amendments (ZC 07-25-5813) generally includes the following:
• Addition of new definitions for “Group Home,” “Integral facilities,” and “Sober living home”;
• Revisions to the existing definitions of “Boarding House” and “Residential Care Facility”;
• Replacement of the term “Residential Care Facility” with “Group Home, including residential care facilities” in the different permitted use sections of all zoning districts that allow residential uses;
• Replacement of the title of Chapter 5.44 from “Residential Care Facilities” to “Group Homes” in all Code references to the Chapter 5.44; and • Addition of “Boarding House” and “Integral Facilities” as prohibited uses in all zoning districts that allow residential uses.

The City’s Planning Commission reviewed the proposed Title 9 amendments at a public hearing on May 7, 2026, and adopted a resolution recommending approval by the City Council. The Planning Commission report on the Title 9 amendments, which includes a more detailed discussion of these amendments, is included as Attachment 3. The amendments to Title 5 did not require review from the Planning Commission.

ENVIRONMENTAL REVIEW:

The proposed Ordinance does not qualify as a "project" subject to CEQA because it would not result in a direct or reasonably foreseeable indirect physical change in the environment (State CEQA Guidelines, § 15060(c)(2)-(3), 15378.).

Notably, the proposed Ordinance serves to create regulations and an administrative process for group homes. Adoption of the proposed Ordinance would not result in any construction or any other physical change to the environment. Thus, adoption of the proposed Ordinance would not result in direct or reasonably foreseeable indirect physical changes in the environment and is not a "project" within the meaning of CEQA.

In the alternative, if the proposed Ordinance is a project subject to CEQA, adoption of the proposed Ordinance would be exempt from environmental review. For the same reasons the proposed Ordinance would not qualify as a "project," the proposed Ordinance falls within the "common sense" exemption because "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment" (State CEQA Guidelines, § 15061(b)(3).). Specifically, and as noted above, adoption of the proposed Ordinance would not result in any construction or any other physical Item: 10
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change to the environment because it involves creating regulations and an administrative process for group homes. Thus, there is no possibility that the adoption of the proposed Ordinance would have a significant effect on the environment. As a result, the adoption of the proposed Ordinance would not be subject to CEQA.

PUBLIC NOTICING:

In accordance with the requirements of the LFMC Section 9.184.040(C)(2), and California Government Code Section 65854, the public hearing notice for the proposed Ordinance was published in a newspaper of general circulation on June 25, 2026. In addition, on June 25, 2026, the public notice was posted at City Hall.

FISCAL IMPACT:

There is minimal fiscal impact associated with the proposed action. The cost to process a Group Home License will be borne by the applicant. A deposit will be required, and the staff time spent reviewing the application will be charged directly to the applicant. The license deposit will be included in the City’s updated fee schedule.

ATTACHMENTS:

1. Attachment 1 Draft Ordinance

2. Attachment 2 Signed Planning Commission Resolution

3. Attachment 3 Planning Commission Agenda Report from May 7, 2026 (including attachments)
Initiated By: Jennifer Mansur, AICP, Senior Planner
Winston Karuga, CCEO, Code Enforcement Supervisor
Submitted By: Gayle Ackerman, AICP, Director of Community Development Approved By: Debra Rose, City Manager
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Attachment 1
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ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF LAKE FOREST, CALIFORNIA, AMENDING

VARIOUS SECTIONS OF THE LAKE FOREST

MUNICIPAL CODE ALLOWING GROUP HOMES FOR
THE BENEFIT OF THE DISABLED; AND FINDING THE

ACTION TO BE EXEMPT FROM CEQA UNDER STATE
CEQA GUIDELINES §15060(c)(2), 15060(c)(3), AND
15061(b)(3)
WHEREAS, under the California Constitution, Article XI, Section 7, the City has been granted broad police powers to preserve the residential character of residential neighborhoods, which powers have been recognized by both the California Supreme Court and United States Supreme Court, the latter of which has stated that, “It is within the power of the legislature to determine that the community should be beautiful as well as healthy, spacious as well as clean, wellbalanced as well as carefully patrolled” (Berman v. Parker (1954) 348 U.S. 26, 33); and
WHEREAS, courts have held that cities have the right to regulate both the number of people who may reside in a residence and the manner in which the residence is used as long as such regulations do not unfairly discriminate or impair an individual’s rights of privacy and association (see, e.g., City of Santa Barbara v. Adamson (1980) 27 Cal.3d 123, 131–34; Ewing v. City of Carmel-By-The-Sea (1991) 234 Cal.App.3d 1579, 1595–98); and
WHEREAS, the Federal Fair Housing Act Amendments of 1988 (“FHAA”) and the California Fair Employment Housing Act (“FEHA”) prohibit enforcement of city ordinances that would on their face or otherwise have the effect of discriminating against equal housing opportunities for the disabled; and WHEREAS, a core purpose of the FHAA, FEHA , and California’s Lanterman Developmental Disabilities Services Act is to provide a broader range of housing opportunities to the disabled; to free the disabled, to the extent possible, from institutional style living; and to ensure that disabled persons have the opportunity to live in normal residential surroundings and use and enjoy a dwelling in a manner similar to the way a dwelling is enjoyed by the non-disabled; and WHEREAS, to fulfill this core purpose, the FHAA and FEHA require that the City grant an exception to its programs and regulations if the exception is both Item: 10
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reasonable and necessary to accommodate a person’s legal disability to afford the disabled person an equal opportunity to use and enjoy a dwelling; and WHEREAS, several state laws require the City to treat state licensed residential care facilities serving six or fewer as a residential use, such that it is permitted in residential zoning districts (see, e.g., Health and Safety Code, §§ 1267.8, 1566.3, 1568.0831, and 11834.23). A report conducted by the 2022–2023 Grand Jury for the County of Orange found that the resulting deinstitutionalization of group living arrangements for the disabled has had a positive effect upon the disabled1; and
WHEREAS, the City’s goal in enacting this ordinance is to preserve the residential characteristics of residential neighborhoods, to provide opportunities for the disabled to reside in residential zones that are enjoyed by the non-disabled; and
WHEREAS, over the past several years the region has seen a significant increase in the number of residential homes being utilized as alcohol and drug recovery facilities for large numbers of individuals (“sober-living homes”); and WHEREAS, the increase appears to be driven in part by the Substance Abuse and Crime Prevention Act of 2000 adopted by California voters, which provides that specified first-time drug and alcohol offenders are to be afforded the opportunity to receive substance abuse treatment rather than incarceration; and WHEREAS, the Affordable Care Act has also significantly expanded the availability of health care coverage for substance abuse treatment; and WHEREAS, the region has seen a sharp increase of sober-living homes, which has generated community outcry and complaints including, but not limited to overcrowding, inordinate amounts of second-hand smoke, and noise; and the clustering of sober-living facilities in close proximity to each other creating near neighborhoods of sober-living homes (see Ohio House LLC v. City of Costa Mesa (9th Cir. 2024) 122 F.4th 1097, 1127); and
WHEREAS, this increase in sober-living homes has become a rising concern for cities statewide as local officials are in some cases being bombarded 1 “Welcome to the Neighborhood: Are cities responsibly managing the integration of group homes?”, County of Orange Grand Jury Investigation, 2022-2023, https://www.ocgrandjury.org/sites/jury/files/2023-06/Welcome_to_the_NeighborhoodAre_cities_responsibly_managing_the_integration_of_group_homes.pdf.” Item: 10
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with complaints from residents about the proliferation of sober-living homes; conferences drawing local officials from around the state are being held discussing what to do about challenges associated with sober-living homes; and the appropriate regulation of soberliving homes has been the topic of several League of California Cities meetings; and WHEREAS, the State Legislature has recognized the need to prevent overconcentration of residential facilities that impairs the integrity of residential neighborhoods and leads to the institutionalization of such neighborhoods, which undermines the benefits of deinstitutionalization (Cal. Health & Saf. Code §§ 1520.5 & 1267.9). To that end, state law allows applications for new residential facility licenses to be denied if the facility’s location is near an existing residential facility, thereby resulting in overconcentration; and
WHEREAS, overconcentration of other group homes for the disabled, including sober-living homes, impairs the integrity of residential neighborhoods and undermines the benefits of deinstitutionalization. The number of sober-living homes in the region is rapidly increasing, leading to an overconcentration of soberliving homes in many cities; and WHEREAS, the purpose of sober-living homes is to provide a comfortable living environment for persons with drug or alcohol addictions in which they remain clean and sober and can participate in a recovery program in a residential, community environment, and so that they have the opportunity to reside in the neighborhood of their choice; and
WHEREAS, recovering alcoholics and drug addicts, who are not currently using alcohol or drugs, are considered disabled under both the FHAA and FEHA; and
WHEREAS, this ordinance and the balance of the City’s zoning provide a benefit to group homes by allowing these facilities to locate in residential neighborhoods, whereas a similarly situated and functioning home with nondisabled tenants would be defined and prohibited as a boarding house; and WHEREAS, group homes (including sober-living homes) typically do not function as a single housekeeping unit for the following reasons: (1) they house transient populations (programs are generally about 90 days and, a 2005 UCLA Item: 10
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study found that 65–70 percent of recovering addicts leave even earlier3); (2) the residents generally have no established ties to each other when they move in and typically do not mingle with other neighbors; (3) neighbors generally do not know those who reside in the home, nor do the residents know the neighbors; (4) the residents have little to no say about who lives or doesn’t live in the home; (5) the residents do not generally share expenses; (6) the residents are often responsible for their own food, laundry and phone; (7) when residents disobey house rules they are often just kicked out of the house; (8) the residents generally do not share the same acquaintances; and (9) residents often pay significantly above-market rate rents. The lack of single-housekeeping-unit characteristics contributes to institutional living conditions; and WHEREAS, the size and makeup of the households in group homes, even those allowed as a matter of right under the Code, can create institutional living conditions because they tend to be larger than average single housekeeping units, creating impacts on water, sewer, roads, parking and other City services that are far greater than the average household, in that the average number of persons per California household is 2.86.4 A sober-living facility allowed as a matter of right can house six residents plus a resident manager, which is more than twice the average California household size; and
WHEREAS, all individuals residing in a sober-living facility are generally over the age of 18, while the average household in the United States has just 1.96 individuals over the age of 18 according to federal census data5, and WHEREAS, because of their transient populations and above-average numbers of adults residing in a single home, group homes (including sober-living facilities) present impacts to residential neighborhoods not typically associated with more traditional single-family uses, which contributes to the institutionalization of residential neighborhoods and residential-care environments, which in turn reduces the benefits of residential environments for disabled residents in group 3 David Deberry and Jeff Ballinger, Group Homes in the Neighborhood, Western City Magazine, September 1, 2006.
4 United States Census Bureau, 2019-2023,
https://www.census.gov/quickfacts/fact/table/CA/HSD310223. 5 United States Census Bureau, Table AVG 1. “Average Number of People per Household, by Race and Hispanic Origin, Marital Status, Age, and Education of Householder: 2023,” https://www.census.gov/data/tables/2023/demo/families/cps2023.html.

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living arrangements. These impacts include: the housing of large numbers of unrelated adults who may or may not be supervised; excessive noise and outdoor smoking, which interferes with the use and enjoyment of residential neighborhoods; little to no interaction with the neighborhood; irresponsible operators with a history of opening facilities in complete disregard of the Code and with little disregard for impacts to the residential environment; disproportional impacts from the average dwelling unit to nearly all City services including sewer, water, parks, libraries, transportation infrastructure, fire and police; a history of congregating in the same general area; and WHEREAS, among other things, this ordinance establishes a 650-foot distance requirement between group homes, which provides many opportunities for the operation of group homes within the City and still results in preferential treatment for group homes relative to boarding house-sytle residences that serve non-disabled individuals in a similar living situation, which cannot operate in residential zones; and
WHEREAS, housing inordinately large numbers of unrelated adults in a single-residence or congregating group homes in close proximity to each other does not provide the disabled with an opportunity to “live in normal residential surroundings,” but rather subjects them to living environments that resemble the types of institutional living that the FEHA and FHAA were designed to provide relief from for the disabled, and which no reasonable person could contend provides a life in a normal residential surrounding (see Ohio House LLC v. City of Costa Mesa (9th Cir. 2024) 122 F.4th 1097, 1127); and
WHEREAS, notwithstanding the above, the City Council recognizes that, when operated responsibly, group homes (including sober-living homes) provide a societal benefit by providing the disabled the opportunity to live in residential neighborhoods, as well as providing recovery programs for individuals attempting to overcome their drug and alcohol addictions. The City provides greater access to residential zones for group homes, including sober-living homes, than to boarding houses, which is a benefit to the City and its residents; and WHEREAS, without sufficient and appropriate regulation, there is no way to ensure that (1) the individuals residing in a group home are disabled individuals and entitled to the protections under local and state law; (2) that a group home is operated professionally to minimize impacts to the character of surrounding residential neighborhoods; and (3) that the secondary impacts such as the effective institutionalization of neighborhoods resulting from the concentration of both group homes or the presence of large numbers of unrelated adults residing in a single dwelling, are mitigated; and
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WHEREAS, the purpose of group homes for the disabled is to provide the disabled an equal opportunity to comfortably reside in residential neighborhoods of their choice.

WHEREAS, the City of Lake Forest (“City”) initiated Zoning Code Amendment (ZC) 07-25-5816 to update sections of Title 9 of the Lake Forest Municipal Code (“LFMC”), related to group homes, residential care facilities, and boarding houses, and initiated a code amendment to LFMC Chapter 5.44 with new regulations and processing requirements for a group home license for the benefit of the disabled, as described in this ordinance; and
WHEREAS, on April 16, 2026, the City gave public notice of the Planning Commission public hearing for ZCA 07-25-5816 by publishing the required notice in a newspaper of general circulation and posting the notice at City Hall; and WHEREAS, on April 16, 2026, the Director of Community Development made the draft ordinance available for public inspection in the Department of Community Development offices and supplied it at cost to all persons desiring a copy, at least ten days before a scheduled Planning Commission public hearing date in accordance with Section 9.196.020 of the Municipal Code; and WHEREAS, on May 7, 2026, the Planning Commission held a duly-noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning ZCA 07-25-5816 and adopted a resolution recommending that the City Council approve and adopt the Zoning Code Amendment; and
WHEREAS, on June 25, 2026, the City gave public notice of the City Council public hearing for the ordinance by publishing the required notice in a newspaper of general circulation and posting the notice at City Hall; and WHEREAS, in accordance with LFMC section 9.196.020, on June 25, 2026, the City Clerk made the ordinance and all relevant documents available for public inspection in the City Clerk’s office, at least five days before the scheduled City Council public-hearing; and
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WHEREAS, on July 7, 2026, the City Council held a noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning this ordinance; and
WHEREAS, all legal prerequisites to the adoption of this ordinance have occurred.

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

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

SECTION 2. CEQA. The City Council finds that adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") for the following reasons:

Adoption of this ordinance does not qualify as a "project" subject to CEQA because this ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, § 15060(c)(2)-(3), 15378.) Notably, this ordinance serves to create regulations and an administrative process for group homes. This ordinance will not result in any construction or any other physical change to the environment. Thus, this ordinance will not result in direct or reasonably foreseeable indirect physical changes in the environment and is not a "project" within the meaning of CEQA.

In the alternative, if this ordinance is a project subject to CEQA, this ordinance is exempt from environmental review. For the same reasons, this ordinance does not qualify as a "project," this ordinance falls within the "common sense" exemption because "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." (State CEQA Guidelines, § 15061(b)(3).) Specifically, and as noted above, this ordinance will not result in any construction or any other physical change to the environment because it involves creating regulations and an administrative process for group homes. Thus, there is no possibility that this ordinance would have a significant effect on the environment. As a result, this ordinance is not subject to CEQA.

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SECTION 3. General Plan. Based on the entire record before the City Council, including all written and oral evidence presented, the City Council hereby finds and determines that this ordinance is consistent with the City’s adopted General Plan. Specifically, this ordinance implements the following General Plan policies and programs:
• LU-2.3 Existing Residential Neighborhoods. Preserve, protect, and enhance the City’s existing residential neighborhoods.
• HE-1.3 Support the provision of housing and supportive services for extremely low-income households and special groups, such as the elderly, persons with disabilities (including developmental disabilities), large families, single-parent households, and those in need of temporary shelter. • “G” of Housing Element Program 7: The City shall update the Zoning Code to remove constraints to housing development and ensure the City’s standards and permitting requirements are consistent with State law. The update shall address the following:
…
G. Residential Care Facilities. Amend the Zoning Code and permit procedures to allow group homes of seven or more persons in all residential zone districts with objective standards to promote approval certainty similar to other residential uses of the same form and consistent with State law and fair housing requirements.

In accordance with these General Plan policies and programs, the updated group home regulations provided in this ordinance are intended to preserve the residential character of the existing Lake Forest residential neighborhoods and to provide equal opportunity for disabled persons to comfortably reside in residential neighborhoods of their choice. Furthermore, this ordinance will remove constraints to housing development by creating objective standards and requiring a streamlined, administrative process for the approval of group homes.

SECTION 4. LFMC Section 5.44 Amendment. Chapter 5.44
(Residential Care Facilities) is hereby replaced in it’s entirety, as provided in “Exhibit A”, attached hereto and incorporated herein by reference.

SECTION 5. Added Definitions to LFMC Section 9.04.030. The following definitions are hereby added to Section 9.04.030 (Definitions) of the Lake Forest Municipal Code to read as follows:

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Group home: A facility that is being used as a supportive living environment for persons who are considered disabled under state or federal law. A group home operated by a single operator or service provider (whether licensed or unlicensed) constitutes a single facility, whether the facility occupies one or more dwelling units on one lot. Group homes include sober-living homes and residential care facilities, but does not include any dwelling that operates as a single housekeeping unit.

Integral Facilities: Any combination of two or more group homes, regardless of whether they are located on the same or contiguous parcels of land, that are under the control and management of the same owner, operator, management company or licensee or any affiliate of any of them, and that are integrated components of one operation. Integral facilities are considered one facility for purposes of applying federal, state, and local laws to its use and operation. Examples of such integral facilities include, but are not limited to, the provision of housing in one facility and recovery programming, treatment, meals, or any other service or services to program participants in another facility or facilities or by assigning staff or a consultant or consultants to provide services to the same program participants in more than one licensed or unlicensed facility.

Sober living home: A group home for persons who are recovering from a drug or alcohol addiction and who are considered disabled under state or federal law, where no service is offered that requires a state license and where the occupants do not use the property as a single-housekeeping unit. The term sober-living home therefore does not include residential care facilities or single housekeeping units.

SECTION 6. Amended Definitions in LFMC Section 9.04.030. The following definitions in Section 9.04.030 (Definitions) of the Lake Forest Municipal Code are hereby amended to read, each in its entirety, as follows:

Boarding House: A residence or dwelling, other than a hotel or motel, wherein rooms are rented under multiple separate written or oral rental agreements, leases or subleases or combination thereof, whether or not the owner, agent or rental manager resides within the residence. Boarding Item: 10
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houses do not include: (1) group homes (including residential care facilities and sober-living homes) or (2) transitional or supportive housing.

An intermediate care facility/developmentally disabled-habilitative or an intermediate care facility/developmentally disabled-nursing, as defined by California Health and Safety Code Section 1250; a congregate living health facility, as defined by California Health and Safety Code Section 1250; a community care facility, as defined by California Health and Safety Code Section 1502; a residential care facility for the elderly, as defined by California Health and Safety Code Section 1569.2; a residential care facility for persons with chronic life-threatening illness, as defined by California Health and Safety Code Section 1568.01; an alcoholism or drug abuse recovery or treatment facility, as defined by California Health and Safety Code Section 11834.02; a pediatric day health and respite care facility, as defined by California Health and Safety Code Section 1760.2; or a family care home, foster home, or group home serving persons with mental health disorders or other disabilities or dependent and neglected children under California Welfare and Institutions Code Section 5116.

SECTION 7. LFMC Section 9.44.020 Amendment. Section 9.44.020 (R1 Single-Family Residential District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

The following principal uses are permitted:

A. Single-family detached dwellings;
B. Parks, playgrounds, and athletic fields (noncommercial); C. Group homes, including residential care facilities, in accordance with Chapter 5.44 (Group Homes);
D. Small and large family day care homes;
E. Limited home rentals.

SECTION 8. LFMC Section 9.44.070 Amendment. Section 9.44.070 (R1-Prohibited uses) of Lake Forest Municipal Code is hereby amended to read in its entirety as follows:

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Notwithstanding Sections 9.44.020 through 9.44.060, the following uses are specifically prohibited:

A. Apiaries;
B. Boarding houses;
C. Integral facilities;
D. Keeping pets or animals for any commercial purpose unless otherwise provided for by an approved use permit;
E. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
F. Transitory lodgings;
G. Uses not expressly permitted by this chapter.

SECTION 9. LFMC Section 9.48.020 Amendment. Section 9.48.020 (RS Residential Single-Family District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

The following principal uses are permitted:

SECTION 10. LFMC Section 9.48.070 Amendment. Section 9.48.070 (RS Residential Single-Family District -Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

Notwithstanding Sections 9.48.020 through 9.48.060, the following uses are specifically prohibited:

A. Apiaries;
B. Boarding houses;
C. Integral facilities;
D. Keeping pets or animals for any commercial purpose unless otherwise provided for by an approved use permit;
E. The storage of vehicles, equipment, or products related to a commercial Item: 10
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activity not permitted in this district;
F. Transitory lodgings;
G. Uses not expressly permitted by this chapter.

SECTION 11. LFMC Section 9.56.020 Amendment. Section 9.56.020 (R2 Multifamily Dwellings District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

The following principal uses are permitted:

A. Multifamily dwellings with four or fewer dwelling units; B. Single-family dwellings;
C. Parks, playgrounds, and athletic fields (noncommercial); D. Group homes, including residential care facilities, in accordance with Chapter 5.44 (Group Homes);
E. Small and large family day care homes;
F. Limited home rentals.

SECTION 12. LFMC Section 9.56.070 Amendment. Section 9.56.070 (R2 Multifamily Dwellings District-Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

Notwithstanding Sections 9.56.020 through 9.56.060, the following uses are specifically prohibited:

A. Boarding houses;
B. Integral facilities
C. Keeping pets or animals for any commercial purpose;
D. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
E. Transitory lodgings;
F. Uses not expressly permitted by this chapter.

SECTION 13. LFMC Section 9.64.020 Amendment. Section 9.64.020 (R4 Suburban Multifamily Dwellings District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

The following principal uses are permitted:

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A. Multifamily dwellings with four or fewer dwelling units; B. Single-family dwellings;
C. Parks, playgrounds, and athletic fields (noncommercial); D. Group homes, including residential care facilities, in accordance with Chapter 5.44 (Group Homes);
E. Small and large family day care homes;
F. Limited home rentals.

SECTION 14. LFMC Section 9.64.070 Amendment. Section 9.64.070 (R4 Suburban Multifamily Dwellings District -Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

Notwithstanding Sections 9.64.020 through 9.64.060, the following uses are specifically prohibited:

A. Boarding houses;
B. Integral facilities;
C. Keeping pets or animals for any commercial purpose;
D. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
E. Transitory lodgings;
F. Uses not expressly permitted by this chapter.

SECTION 15. LFMC Section 9.68.020 Amendment. Section 9.68.020 (RP Residential-Professional District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended and restated to read, each in its entirety as follows:

SECTION 16. LFMC Section 9.68.070 Amendment. Section 9.68.070 (RP Residential-Professional District -Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

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Notwithstanding Sections 9.68.010 through 9.68.060, the following uses are specifically prohibited:

A. Adult entertainment businesses;
B. Boarding houses;
C. Integral facilities;
D. Keeping pets or animals for any commercial purpose;
E. Massage establishments;
F. Transitory lodgings;
G. Uses not expressly permitted by this chapter.

SECTION 17. LFMC Section 9.72.090(A) Amendment. Subsection A of Section 9.72.090 (Land Use Matrix) of the Lake Forest Municipal Code is hereby amended to add an entry for Group Homes and Integral Facilities, and amend footnote 25 to read, each in its entirety as follows:

SECTION 18. LFMC Section 9.73.065 Amendment. Section 9.73.065 (Mixed-Use Land Use Matrix) of the Lake Forest Municipal Code, is hereby amended to add an entry for Group Homes and Integral Facilities, and amend footnote 23 to read, each in its entirety as follows:

SECTION 19. LFMC Section 9.112.020(C)(1) Amendment. Subsection (C)(1) of Section 9.112.020 (PC Planned Community District -General provisions and regulations) of the Lake Forest Municipal Code is hereby amended to read in Use C I PA UA CAN A1 OS
Group Homes X X X X X P25 X
Integral Facilities X X X X X X X

25. In accordance with Chapter 5.44 (Group Homes)
Use MU 32 MU 43 MUO UI 25 UI 43
Group Homes P23 P23 X P23 P23
Integral Facilities X X X X X

23. In accordance with Chapter 5.44 (Group Homes)
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its entirety as follows:

1. Single-Family Dwellings. In any district or area where single-family dwellings are a permitted use, permitted uses include the following:
a. Single-family detached dwellings;
b. Group homes, including residential care facilities, in accordance with Chapter 5.44 (Group Homes);
c. Small and large family day care homes;
d. Limited home rentals.

SECTION 20. LFMC Section 9.112.020(C)(6) Amendment. Subsection (C)(6) of Section 9.112.020 (PC Planned Community District -General provisions and regulations) of the Lake Forest Municipal Code is hereby amended to read in its entirety as follows:

6. Prohibited Uses. Notwithstanding any other provision of this Code or of a PC text, the following uses are specifically prohibited in every planned community:
a. Apiaries;
b. Boarding houses;
c. Integral facilities;
d. Keeping pets or animals for any commercial purpose unless otherwise provided for by an approved use permit;
e. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
f. Transitory lodgings;
g. Uses not expressly permitted by this Code or an applicable PC text.

SECTION 21. LFMC Section 9.232.015 Amendment. Section

9.232.015 (Portola Bluff Residential District-Principal uses permitted) is hereby added to the Lake Forest Municipal Code to read in its entirety as follows:

The following principal uses are permitted:
a. Group homes, including residential care facilities, in accordance with Chapter 5.44 (Group Homes)
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SECTION 22. LFMC Section 9.232.050 Amendment. Section

9.232.050 (Portola Bluff Residential District-Prohibited Uses) is hereby added to the Lake Forest Municipal Code to read in its entirety as follows:

The following uses are specifically prohibited:

A. Boarding houses;
B. Integral facilities;
C. Keeping of pets or animals for any commercial purpose; D. Storage of vehicles, equipment or products related to a commercial activity;
E. Use of chain-link fencing, except during construction activities; F. Transitory lodgings;
G. Any use not expressly permitted by this chapter.

SECTION 23. Effective Date. This ordinance takes effect 30 days following its adoption.

SECTION 24. 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.

SECTION 25. Certification. The City Clerk is directed to certify to the adoption of this ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation available within the City of Lake Forest, and to post a certified copy of this ordinance, including the vote for and against the same, in the office of the City Clerk in accordance with California Government Code section 36933.

SECTION 26. Record of Proceedings. The documents and materials that constitute the record of proceedings on which this ordinance and the above findings are located at the City Clerk’s office at 100 Civic Center Drive, Lake Forest, CA 92630.

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PASSED, APPROVED AND ADOPTED this _____ day of _____________ 2026.

ROBERT PEQUENO, MAYOR
ATTEST:

THY MERRITT

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, do hereby certify that the foregoing Ordinance No. _______ was duly introduced and placed upon its first reading at a regular meeting of the City Council on the ___ day of ________, 2026, and thereafter, said ordinance was duly adopted and passed at a regular meeting of the City Council on the ___ day of _____ 2026, by the following vote, to wit:

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

THY MERRITT

CITY CLERK
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Exhibit A
Chapter 5.44 GROUP HOMES
§ 5.44.010 – Purpose.

This section is intended to preserve the residential character of residential neighborhoods, avoid institutionalization of the disabled, and further the purposes of the California Fair Employment and Housing Act, the Federal Fair Housing Act Amendments of 1988, and the California Lanterman Developmental Disabilities Services Act by, among other things: (1) allowing group homes in the City, subject to streamlined administrative approval; (2) limiting the secondary boardinghouselike impacts of group homes by reducing noise and traffic, preserving safety and providing adequate on street parking; (3) providing opportunities afforded to nondisabled individuals to use and enjoy a dwelling unit in a residential neighborhood; and (4) providing comfortable residential living environments that will enhance the opportunity for the disabled and for recovering addicts to be successful in their programs.
§ 5.44.020 – Definitions
In addition to any other definitions contained in the Municipal Code, the following words and phrases are, for the purpose of this chapter, defined as follows, unless it is clearly apparent from the context that another meaning is intended. Should any of the definitions be in conflict with any current provisions of the Municipal Code, these definitions prevail.
"Applicant" means a person or entity, as defined in this section, applying for a group home license under this chapter as a group home operator. “City” means the City of Lake Forest, California.
"City Manager" means the City Manager of the City of Lake Forest or his or her designee.
“City staff” means City staff or those employed or contracted by the City to carry out city business
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“Director” means the City’s Community Development Director or his or her designee.
“Disabled” is more specifically defined under the fair housing laws, a person who has a physical or mental impairment that limits one or more major life activities, a person who is regarded as having that type of impairment, or a person who has a record of that type of impairment, not including current, illegal use of a controlled substance.
“Fair housing laws” means the Federal Fair Housing Act Amendments of 1988, the Americans with Disabilities Act, and the California Fair Employment and Housing Act, as each statute may be amended from time to time, and each statute’s implementing regulations.
“Group home” means a facility that is being used as a supportive living environment for persons who are considered disabled under state or federal law.

A group home operated by a single operator or service provider (whether licensed or unlicensed) constitutes a single facility, whether the facility occupies one or more dwelling units on one lot. Group homes include sober-living homes and residential care facilities, but does not include any dwelling that operates as a single housekeeping unit.
“Group home license” means a license issued by the City to operate a group home in the City of Lake Forest.
“Hearing officer” means the person selected by the City Manager or Director to serve as the hearing officer in a hearing.
“Household” means all the people occupying a dwelling unit, and includes people who live in different units governed by the same operator. “Integral facilities” means any combination of two or more group homes, regardless of whether they are located on the same or contiguous parcels of land, that are under the control and management of the same owner, operator, management company or licensee or any affiliate of any of them, and that are integrated components of one operation. Integral facilities are considered one Item: 10
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facility for purposes of applying federal, state, and local laws to its use and operation. Examples of such integral facilities include, but are not limited to, the provision of housing in one facility and recovery programming, treatment, meals, or any other service or services to program participants in another facility or facilities or by assigning staff or a consultant or consultants to provide services to the same program participants in more than one licensed or unlicensed facility. “Integral uses” means any two or more residential care programs that are administered by the same owner, operator, management company or licensee, or any affiliate of any of them, in a manner in which participants in two different care programs participate simultaneously in any commonly administered care or recovery activity. Any such integral use will be considered one use for purposes of applying federal, state, and local laws to its operation. “Lot” means any piece or parcel of land or a portion of a subdivision, the boundaries of which have been established by some legal instrument of record, that is recognized and intended as a unit for the purpose of transfer of ownership. "Material misstatement" means any untrue statement of a material fact in any application or report filed with the City Manager, or the omission of any material fact in any application or report.
“Operator” means a company, business or individual that provides residential services, e.g., the placement of individuals in a residence, setting of house rules, or governing behavior of the residents as residents. Operator does not include a property owner or property manager who exclusively handles real-estate contracting or property management and leasing of the property as a whole, and who does not otherwise meet the definition of operator. "Property owner" means the owner of record of the property where the subject lodging establishment is located, as shown on the latest equalized tax assessment role of Orange County.
“Residential care facility” means a residential facility licensed by the state where care, services, or treatment is provided to persons living in a supportive community residential setting. A residential care facility is a type of group home.

Residential care facilities include, but are not limited to, the following: An Item: 10
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intermediate care facility/developmentally disabled-habilitative or an intermediate care facility/developmentally disabled-nursing, as defined by California Health and Safety Code Section 1250; a congregate living health facility, as defined by California Health and Safety Code Section 1250; a community care facility, as defined by California Health and Safety Code Section 1502; a residential care facility for the elderly, as defined by California Health and Safety Code Section 1569.2; a residential care facility for persons with chronic life-threatening illness, as defined by California Health and Safety Code Section 1568.01; an alcoholism or drug abuse recovery or treatment facility, as defined by California Health and Safety Code Section 11834.02; a pediatric day health and respite care facility, as defined by California Health and Safety Code Section 1760.2; or a family care home, foster home, or group home serving persons with mental health disorders or other disabilities or dependent and neglected children under California Welfare and Institutions Code Section 5116.
“Single housekeeping unit” means that use of a dwelling unit in a way that satisfies each of the following criteria:
(1) The residents have established ties and familiarity and interact with each other.
(2) Membership in the single housekeeping unit is fairly stable as opposed to transient or temporary.
(3) Residents share meals, household activities, expenses, or responsibilities.
(4) All adult residents have chosen to jointly occupy the entire premises of the dwelling unit and they each have access to all common areas. (5) If the dwelling unit is rented, each adult resident is named on and is a party to a single written lease that gives each resident joint use and responsibility for the premises.
(6) Membership of the household is determined by the residents not by a landlord, property manager or other third party.
(7) The residential activities of the household are conducted on a nonprofit basis.
(8) Residents generally do not have separate entrances or separate secured food-storage facilities such as cabinets or refrigerators. (9) The household is strictly resident-run; there is no care or supervision provided by a third-party or a paid resident manager at the dwelling unit or on the property.

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“Sober living home” means a group home for persons who are recovering from a drug or alcohol addiction and who are considered disabled under state or federal law, where no service is offered that requires a state license and where the occupants do not use the property as a single-housekeeping unit. The term sober-living home therefore does not include residential care facilities or single housekeeping units.
§ 5.44.030 – License Required
A. A group home license is required to establish a group home in a zoning district where residential uses are permitted in the City of Lake Forest.

B. Exemptions.

1. Residential care facilities, licensed by the State of California to serve six or fewer residents (“exempt state-licensed group homes”).

2. Homes where individuals are living as a single housekeeping unit.
§ 5.44.040 – License Application Requirements
A. Application. The Community Development Director will develop and adopt a standardized group home license application and application process.

Each group home license application must be submitted using the City’s application and adopted process.

B. An application for a group home license is submitted to the Director by the owner and operator of the group home. The owner and operator, if not the same, must both be applicants. The application must include the following:

1. The name, address, phone number, and driver's license number of the property owner and the operator.

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2. Written approval and a statement of responsibility from the property owner of the lot, and a copy of all lease agreements for the property.

3. If the owner or operator is a partnership, corporation, firm, or association, then that entity must provide the additional names and addresses as follows, and each of these identified persons must also sign the application:
a. Every general partner of the partnership,
b. Every person or entity with a controlling interest in the corporation,
c. The person designated by the officers of a corporation as set forth in a resolution of the corporation that is to be designated as the license holder;

4. The license and permit history of each applicant, including whether the applicant, in previously operating a similar use in this or another city, county, or state under a license or permit, has had the license or permit revoked or suspended, and if so, the reason therefore;

5. A map indicating that no current city-licensed or state-licensed group home, whose license information is a public record, is located within 650 feet (straight-line distance) of the lot with the proposed group home.

6. The number of individual beds to be occupied;

7. A site plan showing the configuration of the property, including any accessory structures and on-site parking;

8. A detailed diagram showing the complete interior floor plan, highlighting the location of all beds and living areas;

9. A copy of the group home rules and regulations;

10. A copy of the management plan, which must include, but need not be limited to:
i. A written intake procedure;
ii. A good neighbor policy;
iii. A relapse policy;
iv. An emergency plan;
v. A security plan;
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vi. A discharge plan.

11. An affirmation by each applicant that only residents (other than the house manager) who are handicapped as defined by state and federal law will be allowed to reside at the group home;

12. Blank copies of all forms that all residents and potential residents are required to complete;

13. Each applicant must declare, under penalty of perjury, that the group home does not operate as an integral use or facility.

14. A or fee to cover the City’s actual cost of processing the application.

15. Completed background check; and

16. Any other reasonable information required by the City.

C. Prior to the issuance of a group home license, each applicant and all business owners of an applicant entity must complete a LiveScan background check conducted by the California Department of Justice. The Live Scan procedure will be provided by the City. The cost of the background check must be paid by the applicant.

D. No person may operate a group home until this information has been provided and a license has been issued. Each licensee is responsible for updating information provided for the license to ensure that the City has current and accurate information during the term of the license. § 5.44.050 – License Approval
A. The Director issues a group home license as an administrative action, provided that:

1. The applicant submits a complete application in accordance with the requirements outlined in Section 5.44.040; and

2. The operator has met all applicable regulations and has agreed to comply with the stipulations set forth in this Chapter.

3. No circumstances listed in section 5.44.060 exist.

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B. Prior to license issuance, an inspection of the property must be conducted by City staff to ensure compliance with the requirements of this code and verification of the property conditions.

C. The Director will provide written approval indicating the date the license will become effective and will issue a license that indicates the group home license number, the date the license is effective, the operator's name, the address of the facility, and the number of occupants to be housed. § 5.44.060 – License Denial
A. A group home license must be denied upon a determination by the Director that any of the following circumstances exist:

1. The owner or operator has not met all applicable regulations set forth in this Chapter.

2. The proposed group home, as measured by the closest property lines, is located within 650 feet (straight-line distance) of a group home that was licensed or otherwise legally established prior to the date that the application and deposit or fee were submitted to the City.

3. If it is found that the facility will be part of an Integral Facility, which is prohibited.

4. Any owner or operator or staff person has provided materially false or misleading information on the application or omitted any required information.

5. Any owner or operator or staff person was terminated from any employment during the past two years because of physical assault, sexual harassment, embezzlement or theft; falsifying a drug test; and selling or furnishing illegal drugs or alcohol.

6. Any owner or operator or staff person has been convicted of or pleaded nolo contendere, within the last seven to 10 years (as indicated below), to any of the following offenses:

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i. Any sex offense for which the person is required to register as a sex offender under California Penal Code section 290 (last 10 years);
ii. Arson offenses—Violations of Penal Code Sections 451—455 (last seven years); or
iii. Violent felonies, as defined in Penal Code section 667.5, which involve doing bodily harm to another person (last 10 years). iv. The unlawful sale or furnishing of any controlled substances (last seven years).

7. Any owner or operator or staff person is on parole or formal probation supervision on the date of the submittal of the application or at any time thereafter.

8. Any applicant has had a group home or similar license or permit revoked within the past 24 months in the City of Lake Forest or any other jurisdiction.

9. A group home license under this chapter has been revoked at the proposed location within the last 24 months from the date of revocation, or if it has been revoked following an appeal, whichever action occurred most recently.

B. If the application is denied, the City will give written notice to the applicant specifying the basis for such denial. Notice of denial is deemed to have been served if it is personally served to the applicant or when deposited in the United States mail with prepaid postage and addressed to the applicant at their address as set forth in the application. § 5.44.070 – Request for Reconsideration of License Denial A. If the Director denies a group home license application, that decision is final unless the applicant files a written request for reconsideration with the City Manager within 10 calendar days of the date of the Director's written notice of denial.

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B. Upon receipt of the written request, the City Manager will reconsider the application de novo, together with any new record, document, or other information presented by the applicant or discovered by the City, in the manner provided in Section 5.44.040, 5.44.050, and 5.44.060.

C. The City Manager will provide a written decision within 60 days of the request being filed. The City Manager's decision on the request for reconsideration is final.
§ 5.44.080 – Operational Standards
A. On a lot with a single-family dwelling, a group home may only have six or fewer occupants, not counting a house manager, but in no event may the lot have more than seven occupants (including house manager or managers). If the lot has an accessory dwelling unit, occupants of both units are counted together to determine whether or not the limit of six occupants has been exceeded.

B. Regardless of state licensing, occupancy of a group home in a property with multifamily dwelling units is limited to two occupants per bedroom and a maximum of one house manager per unit at any time.

C. Distance Requirement.

1. The proposed group home, as measured by the closest property lines, must not be located within 650 feet (straight-line distance) of any other lot with a group home.

2. Exemption. If an exempt state-licensed group home locates within 650 feet (straight-line distance) of an existing city-licensed group home, the introduction of the exempt state-licensed group home does not constitute grounds for the denial of a transfer or renewal of the group home license for the existing group home.

E. Integral facilities and uses are prohibited.

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F. A group home must not provide any service requiring licensing from the State of California without the required approvals from the applicable state agency.

G. Management Plan. Each group home must have a City-approved property management plan for the facility that adequately addresses each of the following: on-site management, maximum occupancy, quiet hours and permitted guest visitation hours and procedures (including a prohibition on guests under the influence of any drug or alcohol), loitering, littering, disturbing the peace, nuisance reduction, trash collection, smoking, resident pick-up and drop-off procedures, discharge, and a good neighbor policy, including protocols that will be followed if a neighbor complaint is received. City approval is required for any modifications to the plan.

H. If the group home serves people who are in recovery from drug or alcohol addiction, each resident, other than the house manager, must be actively participating in a certified or licensed recovery program, which may include, but is not limited to, Alcoholics Anonymous or Narcotics Anonymous, and the group home operator must maintain current records of meeting attendance. Under the home’s management plan, refusal to actively participate in such a program must be cause for eviction.

I. Emergency and Security Plan. Each group home must have a Cityapproved emergency and security plan that adequately addresses each of the following: security and management contact information, authority and responsibility of security staff, a map of the property, and overview of the property's security features, security feature testing schedule, overnight parking policies and vehicle violation abatement procedures, emergency medical response protocols, emergency law enforcement response protocols, and daytime and nighttime security monitoring procedures. City approval is required for any modifications to the plan.

J. Each group home facility must have an on-site manager who resides at the property and is responsible for the day-to-day operations of the group home.

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K. Each group home facility must display, in a prominent area visible upon entering, information about the current house manager. This display should include a photo of the manager, their full name as it appears on their government-issued identification or driver's license, and a contact phone number. This information must be made available to any City staff upon request.

L. Each group home facility must display its group home license in an area that is visible upon entering the facility. The license must be made available for inspection by any City staff upon request.

M. The group home must comply with all applicable codes regarding fire, building construction, and safety, and any other relevant laws, regulations, and ordinances. The City's failure to inspect the home does not constitute a waiver of its right to perform future inspections.

N. For the purpose of inspection or audit to determine the objectives and conditions of this section are being fulfilled, upon request by the Director or their designee, the operator must provide access to the property and or records relating to the occupancy, compliance, and operation of the group home.

O. Parking. Each garage and driveway space associated with a dwelling unit or units on the property must be available for the parking of vehicles.

Residents and the house manager may each only store or park a single vehicle on the property or any street within 500 feet of the property.

Vehicles must be operable (per the California Vehicle Code) and currently used as a primary form of transportation for a resident or house manager of the group home.

P. All drivers of vehicles picking up or dropping off persons at a group home must comply with all applicable provisions of this Code and of the Vehicle Code, including, but not limited to, those provisions regulating licensure and parking, standing, and stopping.

Q. In accordance with Penal Code Section 3003.5(c), the number of grouphome residents subject to the sex offender registration requirements of Item: 10
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Penal Code Section 290 may not exceed one resident in any group home or violate the distance provisions provided in Penal Code Section 3003. § 5.44.090 License Expiration
A. Each group home license expires after two calendar years from the date of issuance of the license unless renewed in accordance with this chapter.

B. A group home license expires if the use authorized by the license does not commence within six months of the license being approved.

C. A group home license expires if, after establishment of the group home, the use or activity for which the license was approved is discontinued or abandoned for a period of six months.

D. If a license has not been renewed prior to the scheduled expiration of the license, the operator must immediately cease all operations. § 5.44.100 License Renewal
A. The operator requesting renewal of its group home license must file an application for renewal with the Director at least 90 calendar days before the scheduled expiration of the license. The renewal application must include the information under Section 5.44.040 and any other documentation deemed necessary to consider the license renewal.

B. Any application for renewal of a group home license must be accompanied by a renewal deposit or fee in an amount determined by the City. The renewal deposit or fee is used to pay the City’s actual costs of investigation, report, and related application-processing actions.

C. Prior to the issuance of a renewal for a group home license, all applicants and associated business owners must complete a LiveScan background check, conducted by the California Department of Justice. The City will provide the LiveScan procedure. The applicant must pay the costs of the background check.

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§ 5.44.110 Approval of Renewal
A. The Director issues a renewal of a group home license, provided that:

1. The applicant submits a complete application in accordance with the requirements in 5.44.100; and

2. The operator is in compliance with all applicable regulations set forth in this Chapter

3. No circumstances in 5.44.120 exist.

B. Prior to the issuance of a license renewal, the property must be inspected by City staff to determine compliance with the management plan, other municipal codes and safety requirements.

C. The Director will provide written approval of the renewal indicating the date the license will become effective and will issue a license that indicates the group home license number, the date the license is effective, the operator's name, the address of the facility, and the number of occupants to be housed.
§ 5.44.120 Denial of Renewal
A. The Director must deny a license renewal to the applicant if any of the following conditions exists:

1. The operator has violated any provisions of this chapter;

2. The group home facility has three or more instances of disturbance of the peace, or other disorderly conducts within any six month period;

3. The operator has made a material misstatement in the application for a license renewal;

4. The operator has engaged in fraud, made an intentional misrepresentation or false statement to the City or state or federal government or to their employees regarding operation of the group Item: 10
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home in order to conceal violations of applicable regulations or other wrong-doing; and

5. The operator has been found to be in violation of local, state, or federal laws or requirements pertaining to the operation of group homes, including but not limited to state licensing requirements, the California Building Code, the California Residential Code, the Americans with Disabilities Act, and the Lake Forest Municipal Code.

B. If the application for the renewal is denied, the City will give written notice to the applicant specifying the basis for such denial. A notice of denial is deemed to have been served if it is personally served to the applicant or when deposited in the United States mail with prepaid postage and addressed to the applicant at their address as set forth in the application.
§ 5.44.130 Reconsideration of Denial of Renewal.

A. If the Director denies a group home license renewal application as provided in Section 5.44.120, then the decision is final unless the applicant files a written request for reconsideration with the City Manager within 10 calendar days of the date of the Director’s written notice of denial.

B. Upon receipt of the written request, the City Manager will the renewal application de novo together with any new records, documents, or other information presented by the applicant or discovered by the City.

C. Within 60 days of the de novo hearing, the City will mail a written notice of the decision of the City Manager via U.S. mail to the applicant at the address indicated on the application. The City Manager's decision on the reconsideration is final.
§ 5.44.140 License Transfer
A. A group home license is valid only for the approved location specified on the license and is not transferable to a different location.

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B. A sale or transfer of any ownership interest in a group home facility, which interest would be reported as required in this chapter upon application for a group home license, must be reported to the City within 30 calendar days prior to the closing of the sale or transfer. The City may investigate any person receiving any interest in a group home as a result of such sale or transfer, and if such person satisfies the requirements relating to group home license applicants, the existing license will be endorsed to include them. A deposit or fee in an amount determined by the City must be paid to the City for the investigation by the City necessitated by each such sale or transfer.
§ 5.44.150 – License Revocation
If the City has reason to believe that grounds exist to revoke a license issued under this chapter, the City may conduct an investigation of the group home, and the City may initiate revocation proceedings in accordance with the provisions outlined in this section.

A. Any group home license issued under this chapter may be revoked after notice as provided in accordance with section 5.44.160 and the completion of a hearing as provided in Section 5.44.170, where any of the grounds stated in this section are determined to exist.

B. The occurrence of any of the following are grounds for revocation of a group home license issued under this chapter:

1. The operator has violated any provisions of this chapter,

2. The group home facility has three or more instances of disturbance of the peace, or other disorderly conduct within any six month period.

3. The operator has made a material misstatement in the application for a license.

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4. The operator has engaged in fraud, made an intentional misrepresentation or false statement to the City or state or federal government or to their employees regarding operation of the group home in order to conceal violations of applicable regulation or other wrong-doing.

C. A reasonable accommodation granted under Chapter 1.18 of the Lake Forest Municipal Code does not constitute grounds for revocation.

D. An existing licensed group home is not in violation of this Chapter if an exempt state-licensed group home locates within 650 feet (straight-line distance) of the existing licensed group home, nor is the introduction of a exempt state-licensed group home grounds for the revocation of the existing group home’s license under this Section.
§ 5.44.160 – Revocation Notice
A. Notice of the City's intent to revoke a group home license and of the revocation hearing must be provided in accordance with the provisions of this section.

B. A written notice from the Director is delivered to the operator, and other persons designated on the license, at the addresses designated in the license, via U.S. certified mail, or personal service.

C. The notice must be in writing and contain all of the following:

1. That the City intends to revoke the License;

2. The grounds for the revocation;

3. The date, time, and place of the revocation hearing;

4. That the operator may appear, be heard, examine witnesses, and present evidence in the operator's favor; and
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5. That the operator's failure to appear, be heard, and present evidence in the operator's favor may result in the revocation of the license.
§ 5.44.170 – Revocation Hearing
A. Hearing Officer Assignment. The Director will designate a hearing officer to preside over the revocation of the group home license. The hearing officer may not be a City employee, and may be, but need not be, a qualified attorney, qualified city manager, or a hearing officer with the State Office of Administrative Hearings. The hearing officer is subject to disqualification for bias, prejudice, or material financial interest in the outcome, as provided in subsection C.

B. Scheduling of Hearing. The hearing officer will conduct a hearing within 45 calendar days of the City's mailing of the notice required by Section

5.44.160. A hearing may be conducted in person or via video conference at the discretion of the City.

C. Challenge to Hearing Officer. No later than five days after notice of the hearing date is sent to the appellant, the appellant may challenge the hearing officer's impartiality by filing a written statement with the Director objecting to the hearing before the hearing officer and setting forth the specific grounds for disqualification. General and unsupported claims of bias, prejudice, or material financial interest do not form a basis for disqualification. The Director will issue and serve on the appellant a written decision on the question of disqualification prior to the date of the hearing specified in the notice of hearing.

D. Recording of Appeal Hearing. All hearings are recorded by a video or audio device. Any party to the appeal hearing may also, at his, her, or its own expense, use a court reporter to record the proceeding. If a court reporter is not used, the City will make the video or audio tapes of the hearing available to any party. The City may charge a reasonable fee for reproducing recordings. If a court reporter is used, a party to the hearing may obtain a copy of the transcript upon payment of any applicable fees or costs charged by the court reporter. The City may destroy such recordings Item: 10
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or transcripts following the time during which any and all appeals of the decision are required to be made under this chapter or following the time during which such recordings or transcripts are required to be retained by the City, whichever is later.

E. Evidentiary Rules. The hearing need not be conducted in accordance with the technical rules of evidence. Each party may call and examine witnesses, to introduce exhibits and to cross-examine opposing witnesses who have testified under direct examination. The hearing officer may call and examine any witness. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence, but is not sufficient by itself to support a finding, unless it would be admissible over objection in a civil action. The rules of privilege are applicable to the extent they are permitted in civil actions. Any relevant evidence may be admitted if it is the type on which reasonable persons are accustomed to rely in the conduct of their affairs, regardless of the existence of any common law or statutory rule which might make admission of such evidence improper over objection in civil actions. Oral evidence may be taken on oath or affirmation. Irrelevant, collateral, undue, or repetitious evidence may be excluded.

F. Hearing Officer Decision. After the conclusion of the hearing, the hearing officer will decide whether grounds for revocation exist. Within 10 calendar days after the conclusion of the hearing, the hearing officer will file with the Director a written decision, supported by written findings based on the evidence submitted, and a statement of his or her decision. A copy of such report must be forwarded by mail via U.S. mail to the license holder. The decision of the hearing officer becomes effective five calendar days after its mailing to the license holder. The decision of the hearing officer is final.

G. A group home must cease all operations within 30 days from the effective date of the revocation. The operator and property owner must provide appropriate evidence of the cessation of operations and permit City staff to conduct an inspection of the property to verify that all operations have been discontinued.

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§ 5.44.180 – Existing Group Homes
A. License Required. The operator of an existing non-exempt group home must apply for a group home license within 90 days of the effective date of this section.

B. Deadline; Grace Period. Any existing group home obligated by a written lease exceeding one year from the effective date of the section, or whose activity involves investment of money in leasehold or improvements such that a longer period is necessary to prevent undue financial hardship, is eligible for a reasonable additional extension to achieve full compliance, at the Director's discretion and approval.

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Attachment 2
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Attachment 3
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Planning Commission Agenda Report
Meeting Date: May 7, 2026
Department: Community Development
INITIATED BY: Jennifer Mansur, AICP, Senior Planner
Winston Karuga, CCEO, Code Enforcement Supervisor
SUBMITTED BY: Gayle Ackerman, AICP, Director of Community Development REVIEWED BY: Amy Stonich, AICP, Assistant Director of Community Development
SUBJECT: ZONING CODE AMENDMENT 07-25-5813, A CITYINITIATED ZONING CODE AMENDMENT TO AMEND VARIOUS SECTIONS OF THE ZONING CODE (TITLE 9 OF

LAKE FOREST MUNICIPAL CODE) RELATED TO GROUP

HOMES, RESIDENTIAL CARE FACILITIES, AND

BOARDING HOUSES
EXECUTIVE SUMMARY:

Zoning Code Amendment (ZC) 07-25-5813 is a City-initiated code amendment to amend Title 9 (Zoning Code) of the Lake Forest Municipal Code related to group homes, residential care facilities, and boarding houses. This Zoning Code Amendment includes updating definitions, adding group homes as a permitted use in all zoning districts that allow residential uses, updating references related to Municipal Code Chapter 5.44, and more clearly prohibiting boarding houses from zoning districts that allow residential uses. The Planning Commission’s purview is to provide a recommendation on all Zoning Code (Title 9) Amendments to the City Council. When this Zoning Code Amendment is forwarded to the City Council, it will also include a Municipal Code Amendment to amend Chapter 5.44 (Title 5).

This Municipal Code Amendment, which is not under the purview of the Planning Commission, will create a new permitting process and regulations for group homes in accordance with state law.

RECOMMENDED ACTION(S):
1) Recommend that the City Council find that Zoning Code Amendment 07-25- 5813 is not subject to the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines, § 15060(c)(2)-(3) and 15378 (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) Item: 4
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and Section 15061(b)(3) (the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment).
2) Adopt a Resolution entitled: A RESOLUTION OF THE PLANNING

COMMISSION OF THE CITY OF LAKE FOREST RECOMMENDING THE CITY

COUNCIL ADOPT AN ORDINANCE AMENDING VARIOUS SECTIONS OF TITLE 9 OF THE LAKE FOREST MUNICIPAL CODE ALLOWING GROUP HOMES FOR THE BENEFIT OF THE DISABLED; AND FINDING THE ACTION

TO BE EXEMPT FROM CEQA UNDER STATE CEQA GUIDELINES
§15060(c)(2), 15060(c)(3), AND 15061(b)(3)
BACKGROUND:

For years, the State of California has imposed certain limits on local regulation of residential care facilities. Specifically, the City’s Zoning Code must treat residential care facilities with six or fewer residents as a single-family residential use. In 2023, the City Council adopted Municipal Code Amendments to address residential care facilities, serving 7 or more persons, as required by the Department of Housing and Community Development in the City’s Housing Element Program 7. The amendment included a Zoning Code Amendment and the addition of Code Chapter 5.44 Residential Care Facilities in Title 5 of the City’s Code. Generally the amendment allowed residential care facilities of seven or more persons in all residential zones with objective standards to promote approval certainty and consistency with state and federal laws.

Based on recent court cases (Ohio House LLC v. City of Costa Mesa (9th Cir. 2024) 122 F.4th 1097, 1127) and within the federal and state laws (Federal Fair Housing Act Amendments of 1988, California Fair Employment Housing Act, and California’s Lanterman Developmental Disabilities Services Act), City staff is updating the City’s code related to group homes, which includes residential care facilities. In accordance with these laws, the purpose of the update is to establish reasonable regulations to prevent overconcentration while continuing to allow such facilities to operate within residential neighborhoods. By doing so, the City aims to ensure that disabled individuals are afforded an equal opportunity to live in residential surroundings, while protecting the health, safety, and welfare of the community.

DISCUSSION:

Zoning Code Amendment (ZC) 07-25-5813 is a City-initiated code amendment to amend Title 9 (Zoning Code) of the Lake Forest Municipal Code related to group homes, residential care facilities, and boarding houses. This includes changes to the definitions in Chapter 9.04 and changes to the permitted and prohibited uses in all the City’s residential and mixed-use zoning districts. The Planning Item: 4
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Commission’s purview is to provide a recommendation on all Zoning Code (Title 9) Amendments to the City Council. When this Zoning Code Amendment is forwarded to the City Council, it will also include a Municipal Code Amendment to amend Chapter 5.44 (Title 5). This Municipal Code Amendment, which is not under the purview of the Planning Commission, will create a new permitting process and regulations for group homes in accordance with state law. The Code Amendment will also include changing the title of Chapter 5.44 from “Residential Care Facilities” to “Group Homes.”
Proposed Zoning Code Amendments- Definitions
Generally, this Zoning Code Amendment creates a definition for group homes and other related terms. Generally, the new definition of group homes is a broad term for a supportive living environment for disabled persons. As shown in Graphic 1, group homes include state licensed residential care facilities and residential facilities that do not require state licenses. Examples of group homes are included in Graphic 1.

Graphic 1: Types of Group Homes
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The changes to the definitions in the Zoning Code, include three new definitions for “Group Home,” “Integral facilities,” and “Sober living home.” as follows:

Group home: A facility that is being used as a supportive living environment for persons who are considered disabled under state or federal law. A group home operated by a single operator or service provider (whether licensed or unlicensed) constitutes a single facility, whether the facility occupies one or more dwelling units on one lot. Group homes include residential care facilities and sober-living homes but do not include any dwelling that operates as a single housekeeping unit.

The proposed amendments also include amendments to the existing definitions of “Boarding House” and “Residential Care Facility,” which will provide more clarity for applicants and City staff, as shown in the following (added text is underlined in red and deleted text is struck-through):

Boarding House: A residence or dwelling unit, other than a hotel or motel, that is used in whole or in part to provide short-term or long-term lodging for compensation under multiple separate written or oral agreements. A boarding house is a transitory-lodging use. wherein rooms are rented under multiple separate written or oral rental agreements, leases or subleases, or combination thereof, whether or not the owner, agent or rental manager resides within the residence. Boardinghouses do not include: (1) group homes; (2) residential care facilities; (3) sober-living homes; or (4) transitional or supportive housing.

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Residential Care Facility: A residential facility licensed by the state where care, services, or treatment is provided to persons living in a supportive community residential setting. A residential care facility is a type of group home. Residential care facilities include, but are not limited to, the following: An intermediate care facility/developmentally disabled-habilitative or an intermediate care facility/developmentally disabled-nursing, as defined by California Health and Safety Code Section 1250; a congregate living health facility, as defined by California Health and Safety Code Section 1250; a community care facility, as defined by California Health and Safety Code Section 1502; a residential care facility for the elderly, as defined by California Health and Safety Code Section 1569.2; a residential care facility for persons with chronic life-threatening illness, as defined by California Health and Safety Code Section 1568.01; an alcoholism or drug abuse recovery or treatment facility, as defined by California Health and Safety Code Section 11834.02; a pediatric day health and respite care facility, as defined by California Health and Safety Code Section 1760.2; or a family care home, foster home, or group home serving persons with mental health disorders or other disabilities or dependent and neglected children under California Welfare and Institutions Code Section 5116.

The new and amended definitions will provide clearer definitions for the new uses being added into the City’s Zoning Code and ensure consistency with the proposed changes to Chapter 5.44.

Proposed Zoning Code Amendments- Group Homes and references related to Municipal Code Chapter 5.44
The proposed Zoning Code Amendment includes changes to the permitted and prohibited uses of all zoning districts in the City’s Zoning Code that allow residential uses. Table 1 includes a list of the City’s zoning districts that allow residential uses and references to the Zoning Code sections that include the permitted and prohibited uses.

Residential care facilities are already listed as a permitted use in all the City’s zoning districts that allow residential uses. The Zoning Code Amendment proposes replacing the term “Residential Care Facility” with “Group Home, including residential care facilities” in the different permitted use sections of the zoning districts listed in Table 1. “Group Home” is a more general term and would include both residential care facilities, which are licensed group homes, and non-licensed group homes (ex: sober living facilities). As previously stated, when this Zoning Code Amendment is forwarded to the City Council, it will also include a Municipal Code Amendment to amend Chapter 5.44, which includes changing the title of Item: 4
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Chapter 5.44 from “Residential Care Facilities” to “Group Homes.” This Zoning Code Amendment will also update all references to Chapter 5.44.

The following is an example of the proposed changes in the R1 Zoning District (added text is underlined in red and deleted text is struck-through):

Table 1: Zoning Districts in City’s Zoning Code
that Allow Residential Uses
Zoning Districts
Code
section
with
permitted
uses
Code
section
with
prohibited
uses
R1 Single-Family Residential District 9.44.020 9.44.070 RS Residential Single-Family District 9.48.020 9.48.070 R2 Multifamily Dwellings District 9.56.020 9.56.070
R4 Suburban Multifamily Residential District 9.64.020 9.64.070 RP Residential-Professional District 9.68.020 9.68.070
A1 Agricultural District1 9.72.090 9.72.090
MU 32 Mixed-use 32 District 9.73.065 9.73.065
MU 43 Mixed-use 43 District 9.73.065 9.73.065
UI 25 Urban Industrial 25 District 9.73.065 9.73.065
UI 43 Urban Industrial 43 District 9.73.065 9.73.065
PC Planned Communities2 9.112(C)(1) 9.112(C)(6)
PBR Portola Bluff Residential District 9.232.015 9.232.050 Notes:

1. The A1 zoning district allows for one single-family dwelling or mobile home.

2. The Planned Communities district (Chapter 9.112) general regulations apply to all zoning districts in any of the City’s 10 Planned Communities.

Chapter 9.44 R1 Single-Family Residential District

9.44.020 Principal uses permitted.

The following principal uses are permitted:

A. Single-family detached dwellings;
B. Parks, playgrounds, and athletic fields (noncommercial); C. Group homes, including Rresidential care facilities, in accordance with Chapter 5.44 (Group Homes Residential Care Facilities); D. Small and large family day care homes;
E. Limited home rentals.

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Proposed Zoning Code Amendments- Boarding Houses and Integral Facilities
Additionally, this Zoning Code Amendment also includes adding “Boarding House” and “Integral Facilities” as prohibited uses in all zoning districts listed in Table 1.

Currently, the City’s Zoning Code prohibits transitional housing, which, in the definition, includes boarding houses. However, staff is proposing to more directly prohibit “boarding houses,” which will make it easier for the public to find in the City’s Zoning Code and facilitate communications with the public on the code section. Group homes, and integral facilities are also prohibited in all the City’s non-residential zoning districts.

The following is an example of the proposed changes to the prohibited uses section in the R1 Zoning District (added text is underlined in red and deleted text is struck-through):

All of the changes to the definitions, permitted uses, and prohibited uses are documented in the draft PC resolution (PC Attachment 1) and in the Proposed Zoning Code Amendments (Additions and Deletions) (PC Attachment 2).

ENVIRONMENTAL REVIEW:

The proposed ordinance does not qualify as a "project" subject to CEQA because the proposed ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, § 15060(c)(2)-(3), 15378.) Notably, the proposed ordinance serves to create regulations and an administrative process for group homes. Adoption of the proposed ordinance will not result in any construction or any other physical change to the environment.

Chapter 9.44 R1 Single-Family Residential District

9.44.070 Prohibited uses.

Notwithstanding Sections 9.44.020 through 9.44.060, the following uses are specifically prohibited:

A. Apiaries;
B. Boarding houses;
C. Integral facilities;
D. B. Keeping pets or animals for any commercial purpose unless otherwise provided for by an approved use permit;
E. C. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
F. D. Transitory lodgings;
G. E. Uses not expressly permitted by this chapter.

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Thus, adoption of the proposed ordinance will not result in direct or reasonably foreseeable indirect physical changes in the environment and is not a "project" within the meaning of CEQA.

In the alternative, if the proposed ordinance is a project subject to CEQA, adoption of the proposed ordinance is exempt from environmental review. For the same reasons the proposed ordinance does not qualify as a "project," the proposed ordinance falls within the "common sense" exemption because "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." (State CEQA Guidelines, § 15061(b)(3).) Specifically, and as noted above, adoption of the proposed ordinance will not result in any construction or any other physical change to the environment because it involves creating regulations and an administrative process for group homes.

Thus, there is no possibility that the adoption of the proposed ordinance would have a significant effect on the environment. As a result, the adoption of the proposed ordinance is not subject to CEQA.

PUBLIC NOTICING:

In accordance with the requirements of the Lake Forest Municipal Code Section

9.184.040(C)(2), and California Government Code Section 65854, the public hearing notice was published in a newspaper of general circulation on April 16, 2026. In addition, on April 16, 2026, the public notice was posted at City Hall.

ATTACHMENTS:

1. Draft PC Resolution

2. Proposed Zoning Code Amendments (Additions and Deletions) Item: 4
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PC ATTACHMENT 1
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PC Resolution 2026-XX
ZC 07-25-5816

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1 RESOLUTION NO. ____-__

A RESOLUTION OF THE PLANNING COMMISSION

OF THE CITY OF LAKE FOREST RECOMMENDING

THE CITY COUNCIL ADOPT AN ORDINANCE
AMENDING VARIOUS SECTIONS OF TITLE 9 OF THE

LAKE FOREST MUNICIPAL CODE ALLOWING

GROUP HOMES FOR THE BENEFIT OF THE
DISABLED; AND FINDING THE ACTION TO BE

EXEMPT FROM CEQA UNDER STATE CEQA
GUIDELINES §15060(c)(2), 15060(c)(3), AND
15061(b)(3)
WHEREAS, under the California Constitution, Article XI, Section 7, the City has been granted broad police powers to preserve the residential character of residential neighborhoods, which powers have been recognized by both the California Supreme Court and United States Supreme Court, the latter of which has stated that, “It is within the power of the legislature to determine that the community should be beautiful as well as healthy, spacious as well as clean, wellbalanced as well as carefully patrolled” (Berman v. Parker (1954) 348 U.S. 26, 33); and
WHEREAS, courts have held that cities have the right to regulate both the number of people who may reside in a residence and the manner in which the residence is used as long as such regulations do not unfairly discriminate or impair an individual’s rights of privacy and association (see, e.g., City of Santa Barbara v. Adamson (1980) 27 Cal.3d 123, 131–34; Ewing v. City of Carmel-By-The-Sea (1991) 234 Cal.App.3d 1579, 1595–98); and
WHEREAS, the Federal Fair Housing Act Amendments of 1988 (“FHAA”) and the California Fair Employment Housing Act (“FEHA”) prohibit enforcement of zoning ordinances that would on their face or otherwise have the effect of discriminating against equal housing opportunities for the disabled; and WHEREAS, a core purpose of the FHAA, FEHA, and California’s Lanterman Developmental Disabilities Services Act (“Lanterman Act”) is to provide a broader range of housing opportunities to the disabled; to free the disabled, to the extent possible, from institutional style living; and to ensure that disabled persons have the opportunity to live in normal residential surroundings and use and enjoy a dwelling in a manner similar to the way a dwelling is enjoyed by the non-disabled; and
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ZC 07-25-5816

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2 WHEREAS, to fulfill this core purpose, the FHAA and FEHA require that the City grant an exception to its zoning ordinances if the exception is both reasonable and necessary to accommodate a person’s legal disability to afford the disabled person an equal opportunity to use and enjoy a dwelling; and WHEREAS, several state laws require the City to treat state licensed residential care facilities serving six or fewer as a residential use, such that it is permitted in residential zoning districts (see, e.g., Health and Safety Code, §§ 1267.8, 1566.3, 1568.0831, and 11834.23). A report conducted by the 2022– 2023 Grand Jury for the County of Orange found that the resulting deinstitutionalization of group living arrangements for the disabled has had a positive effect upon the disabled1; and
WHEREAS, the City’s goal in enacting the proposed ordinance is to preserve the residential characteristics of residential neighborhoods, to provide opportunities for the disabled to reside in residential zones that are enjoyed by the non-disabled; and
WHEREAS, over the past several years the region has seen a significant increase in the number of residential homes being utilized as alcohol and drug recovery facilities for large numbers of individuals (“sober-living homes”); and WHEREAS, the increase appears to be driven in part by the Substance Abuse and Crime Prevention Act of 2000 adopted by California voters, which provides that specified first-time drug and alcohol offenders are to be afforded the opportunity to receive substance abuse treatment rather than incarceration; and WHEREAS, the Affordable Care Act has also significantly expanded the availability of health care coverage for substance abuse treatment; and WHEREAS, the region has seen a sharp increase of sober-living homes, which has generated community outcry and complaints including, but not limited to overcrowding, inordinate amounts of second-hand smoke, and noise; and the clustering of sober-living facilities in close proximity to each other creating near neighborhoods of sober-living homes (see Ohio House LLC v. City of Costa Mesa (9th Cir. 2024) 122 F.4th 1097, 1127); and
1 “Welcome to the Neighborhood: Are cities responsibly managing the integration of group homes?”, County of Orange Grand Jury Investigation, 2022-2023, https://www.ocgrandjury.org/sites/jury/files/2023-06/Welcome_to_the_NeighborhoodAre_cities_responsibly_managing_the_integration_of_group_homes.pdf.” Item: 4
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3 WHEREAS, this increase in sober-living homes has become a rising concern for cities statewide as local officials are in some cases being bombarded with complaints from residents about the proliferation of sober-living homes; conferences drawing local officials from around the state are being held discussing what to do about challenges associated with sober-living homes; and the appropriate regulation of sober-living homes has been the topic of several League of California Cities meetings; and
WHEREAS, the state Legislature has recognized the need to prevent overconcentration of residential facilities that impairs the integrity of residential neighborhoods and leads to the institutionalization of such neighborhoods, which undermines the benefits of deinstitutionalization (Cal. Health & Saf. Code §§ 1520.5 & 1267.9). To that end, state law allows applications for new residential facility licenses to be denied if the facility’s location is near an existing residential facility, thereby resulting in overconcentration; and
WHEREAS, overconcentration of other group homes for the disabled, including sober-living homes, impairs the integrity of residential neighborhoods and undermines the benefits of deinstitutionalization. The number of sober-living homes in the region is rapidly increasing, leading to an overconcentration of soberliving homes in many cities; and WHEREAS, the purpose of sober-living homes is to provide a comfortable living environment for persons with drug or alcohol addictions in which they remain clean and sober and can participate in a recovery program in a residential, community environment, and so that they have the opportunity to reside in the neighborhood of their choice; and
WHEREAS, recovering alcoholics and drug addicts, who are not currently using alcohol or drugs, are considered disabled under both the FHAA and FEHA; and
WHEREAS, the proposed ordinance and the balance of the City’s zoning provide a benefit to group homes by allowing these facilities to locate in residential neighborhoods, whereas a similarly situated and functioning home with nondisabled tenants would be defined and prohibited as a boarding house; and WHEREAS, group homes (including sober-living homes) typically do not function as a single housekeeping unit for the following reasons: (1) they house transient populations (programs are generally about 90 days and, a 2005 UCLA Item: 4
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4 study found that 65–70 percent of recovering addicts leave even earlier3); (2) the residents generally have no established ties to each other when they move in and typically do not mingle with other neighbors; (3) neighbors generally do not know those who reside in the home, nor do the residents know the neighbors; (4) the residents have little to no say about who lives or doesn’t live in the home; (5) the residents do not generally share expenses; (6) the residents are often responsible for their own food, laundry and phone; (7) when residents disobey house rules they are often just kicked out of the house; (8) the residents generally do not share the same acquaintances; and (9) residents often pay significantly above-market rate rents. The lack of single-housekeeping-unit characteristics contributes to institutional living conditions; and
WHEREAS, the size and makeup of the households in group homes, even those allowed as a matter of right under the Code, can create institutional living conditions because they tend to be larger than average single housekeeping units, creating impacts on water, sewer, roads, parking and other City services that are far greater than the average household, in that the average number of persons per California household is 2.86.4 A sober-living facility allowed as a matter of right can house six residents plus a resident manager, which is more than twice the average California household size; and
WHEREAS, all individuals residing in a sober-living facility are generally over the age of 18, while the average household in the United States has just 1.96 individuals over the age of 18 according to federal census data5, and WHEREAS, because of their transient populations and above-average numbers of adults residing in a single home, group homes (including sober-living facilities) present impacts to residential neighborhoods not typically associated with more traditional single-family uses, which contributes to the institutionalization of residential neighborhoods and residential care environments, which in turn reduces the benefits of residential environments for disabled residents in group living arrangements. These impacts include: the housing of large numbers of 3 David Deberry and Jeff Ballinger, Group Homes in the Neighborhood, Western City Magazine, September 1, 2006.
4 United States Census Bureau, 2019-2023,
https://www.census.gov/quickfacts/fact/table/CA/HSD310223. 5 United States Census Bureau, Table AVG 1. “Average Number of People per Household, by Race and Hispanic Origin, Marital Status, Age, and Education of Householder: 2023,” https://www.census.gov/data/tables/2023/demo/families/cps-2023.html.

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5 unrelated adults who may or may not be supervised; excessive noise and outdoor smoking, which interferes with the use and enjoyment of residential neighborhoods; little to no interaction with the neighborhood; irresponsible operators with a history of opening facilities in complete disregard of the Code and with little disregard for impacts to the residential environment; disproportional impacts from the average dwelling unit to nearly all City services including sewer, water, parks, libraries, transportation infrastructure, fire and police; a history of congregating in the same general area; and
WHEREAS, among other things, the proposed ordinance establishes a 650- foot distance requirement between group homes, which provides many opportunities for the operation of group homes within the City and still results in preferential treatment for group homes that serve non-disabled individuals in a similar living situation (i.e., in boardinghouse-style residences) which cannot operate in residential zones; and
WHEREAS, housing inordinately large numbers of unrelated adults in a single-residence or congregating group homes in close proximity to each other does not provide the disabled with an opportunity to “live in normal residential surroundings,” but rather subjects them to living environments that resemble the types of institutional living that the FEHA and FHAA were designed to provide relief from for the disabled, and which no reasonable person could contend provides a life in a normal residential surrounding (see Ohio House LLC v. City of Costa Mesa (9th Cir. 2024) 122 F.4th 1097, 1127); and
WHEREAS, notwithstanding the above, the Planning Commission recognizes that, when operated responsibly, group homes (including sober-living homes) provide a societal benefit by providing the disabled the opportunity to live in residential neighborhoods, as well as providing recovery programs for individuals attempting to overcome their drug and alcohol addictions. Providing greater access to residential zones to group homes, including sober-living homes, than to boardinghouses provides a benefit to the City and its residents; and WHEREAS, without sufficient, appropriate regulation, there is no way to ensure that the individuals entering into a group home are disabled individuals and entitled to the protections under local and state law; that a group home is operated professionally to minimize impacts to the character of residential neighborhoods; and that the secondary impacts which cause the institutionalization of group homes due to concentration of both group homes in a neighborhood and large numbers of unrelated adults residing in a single facility in a single home are lessened; and Item: 4
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6 WHEREAS, in addition to group homes locating in residential neighborhoods, other state-licensed residential care facilities are also taking up residence in residential neighborhoods; and
WHEREAS, the purpose of group homes for the disabled is to provide the disabled an equal opportunity to comfortably reside in residential neighborhoods of their choice.

WHEREAS, the City of Lake Forest (“City”) initiated Zoning Code Amendment (ZC) 07-25-5816 to update sections of Title 9 of the Lake Forest Municipal Code, related to group homes, residential care facilities, and boarding houses; and
WHEREAS, April 16, 2026, the City gave public notice of the public hearing for Zoning Code Amendment 07-25-5816 by publishing the required notice in a newspaper of general circulation and posting the notice at City Hall; and WHEREAS, on April 16, 2026, the Director of Community Development made the draft ordinance available for public inspection in the Department of Community Development offices and supplied it at cost to all persons desiring a copy, at least ten days before a scheduled Planning Commission public hearing date in accordance with Section 9.196.020 of the LFMC; and WHEREAS, on May 7, 2026, the Planning Commission held a duly-noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning Zoning Code Amendment 07-25-5816.

NOW, THEREFORE, the Planning Commission of the City of Lake Forest does hereby resolve as follows:

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

SECTION 2. CEQA. The Planning Commission finds that 07-25-5816 is not subject to the California Environmental Quality Act ("CEQA") pursuant to the following sections of the State CEQA Guidelines:

The proposed ordinance does not qualify as a "project" subject to CEQA because the proposed ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment. (State CEQA Guidelines, § 15060(c)(2)-(3), 15378.) Notably, the proposed ordinance Item: 4
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7 serves to create regulations and an administrative process for group homes. Adoption of the proposed ordinance will not result in any construction or any other physical change to the environment. Thus, adoption of the proposed ordinance will not result in direct or reasonably foreseeable indirect physical changes in the environment and is not a "project" within the meaning of CEQA.

In the alternative, if the proposed ordinance is a project subject to CEQA, adoption of the proposed ordinance is exempt from environmental review.

For the same reasons the proposed ordinance does not qualify as a "project," the proposed ordinance falls within the "common sense" exemption because "it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." (State CEQA Guidelines, § 15061(b)(3).) Specifically, and as noted above, adoption of the proposed ordinance will not result in any construction or any other physical change to the environment because it involves creating regulations and an administrative process for group homes. Thus, there is no possibility that the adoption of the proposed ordinance would have a significant effect on the environment. As a result, the adoption of the proposed ordinance is not subject to CEQA.

SECTION 3. General Plan. Based on the entire record before the Planning Commission, including all written and oral evidence presented, the Planning Commission hereby finds and determines that ZC 07-25-5816 is consistent with the City’s adopted General Plan. Specifically, the Zoning Code Amendment implements the following General Plan policies and programs:
• LU-2.3 Existing Residential Neighborhoods. Preserve, protect, and enhance the City’s existing residential neighborhoods.
• HE-1.3 Support the provision of housing and supportive services for extremely low-income households and special groups, such as the elderly, persons with disabilities (including developmental disabilities), large families, single-parent households, and those in need of temporary shelter.
• “G” of Housing Element Program 7: The City shall update the Zoning Code to remove constraints to housing development and ensure the City’s standards and permitting requirements are consistent with State law. The update shall address the following:

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8 …
G. Residential Care Facilities. Amend the Zoning Code and permit procedures to allow group homes of seven or more persons in all residential zone districts with objective standards to promote approval certainty similar to other residential uses of the same form and consistent with State law and fair housing requirements.

In accordance with these General Plan policies and programs, this Zoning Code Amendment, update sections of Title 9 of the Lake Forest Municipal Code, related to group homes, residential care facilities, and boarding houses. These Zoning Code Amendments will be considered by the Council concurrently with updated group home regulations, which are intended to preserve the residential character of the existing Lake Forest residential neighborhoods and to provide equal opportunity for disabled persons to comfortably reside in residential neighborhoods of their choice. Furthermore, this Zoning Code Amendment will remove constraints to housing development by creating objective standards and requiring a ministerial process for the approval of group homes.

SECTION 4. Added Definitions to LFMC Section 9.04.030. The following definitions are hereby added to Section 9.04.030 (Definitions) of the Lake Forest Municipal Code to read as follows:

Integral Facilities: any combination of two or more group homes, regardless of whether they are located on the same or contiguous parcels of land, that are under the control and management of the same owner, operator, management company or licensee or any affiliate of any of them, and that are integrated components of one operation. Integral facilities are considered one facility for purposes of applying federal, state, and local laws to its use and operation. Examples of such integral facilities include, but are not limited to, the provision of housing in one facility and recovery programming, treatment, meals, or any other service or services to program participants in another facility or facilities or by assigning staff or a consultant or consultants to provide services to the same program participants in more than one licensed or unlicensed facility.

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9 Sober living home: A group home for persons who are recovering from a drug or alcohol addiction and who are considered disabled under state or federal law, where no service is offered that requires a state license and where the occupants do not use the property as a single-housekeeping unit.

The term sober-living home therefore does not include residential care facilities or single housekeeping units.

SECTION 5. Amended Definitions in LFMC Section 9.04.030. The following definitions in Section 9.04.030 (Definitions) of the Lake Forest Municipal Code are hereby amended to read, each in its entirety, as follows:

Boarding House: A residence or dwelling, other than a hotel or motel, wherein rooms are rented under multiple separate written or oral rental agreements, leases or subleases or combination thereof, whether or not the owner, agent or rental manager resides within the residence. Boarding houses do not include: (1) group homes; (2) residential care facilities; (3) sober-living homes; or (4) transitional or supportive housing.

SECTION 6. LFMC Section 9.44.020 Amendment. Section 9.44.020 (R1 Single-Family Residential District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

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10 The following principal uses are permitted:

SECTION 7. LFMC Section 9.44.070 Amendment. Section 9.44.070 (R1-Prohibited uses) of Lake Forest Municipal Code is hereby amended to read in its entirety as follows:

Notwithstanding Sections 9.44.020 through 9.44.060, the following uses are specifically prohibited:

SECTION 8. LFMC Section 9.48.020 Amendment. Section 9.48.020 (RS Residential Single-Family District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

The following principal uses are permitted:

SECTION 9. LFMC Section 9.48.070 Amendment. Section 9.48.070 (RS Residential Single-Family District -Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

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11 Notwithstanding Sections 9.48.020 through 9.48.060, the following uses are specifically prohibited:

SECTION 10. LFMC Section 9.56.020 Amendment. Section 9.56.020 (R2 Multifamily Dwellings District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

The following principal uses are permitted:

SECTION 11. LFMC Section 9.56.070 Amendment. Section 9.56.070 (R2 Multifamily Dwellings District-Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, in its entirety as follows:

Notwithstanding Sections 9.56.020 through 9.56.060, the following uses are specifically prohibited:

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12 SECTION 12. LFMC Section 9.64.020 Amendment. Section 9.64.020 (R4 Suburban Multifamily Dwellings District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

The following principal uses are permitted:

SECTION 13. LFMC Section 9.64.070 Amendment. Section 9.64.070 (R4 Suburban Multifamily Dwellings District -Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

Notwithstanding Sections 9.64.020 through 9.64.060, the following uses are specifically prohibited:

SECTION 14. LFMC Section 9.68.020 Amendment. Section 9.68.020 (RP Residential-Professional District -Principal Uses Permitted) of the Lake Forest Municipal Code is hereby amended and restated to read, each in its entirety as follows:

SECTION 15. LFMC Section 9.68.070 Amendment. Section 9.68.070 (RP Residential-Professional District -Prohibited Uses) of the Lake Forest Municipal Code is hereby amended to read, each in its entirety as follows:

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13 Notwithstanding Sections 9.68.010 through 9.68.060, the following uses are specifically prohibited:

SECTION 16. LFMC Section 9.72.090(A) Amendment. Subsection A of Section 9.72.090 (Land Use Matrix) of the Lake Forest Municipal Code is hereby amended to add an entry for Group Homes and Integral Facilities, and amend footnote 25 to read, each in its entirety as follows:

SECTION 17. LFMC Section 9.73.065 Amendment. Section 9.73.065 (Mixed-Use Land Use Matrix) of the Lake Forest Municipal Code, is hereby amended to add an entry for Group Homes and Integral Facilities, and amend footnote 23 to read, each in its entirety as follows:

SECTION 18. LFMC Section 9.112.020(C)(1) Amendment. Subsection (C)(1) of Section 9.112.020 (PC Planned Community District -General provisions and regulations) of the Lake Forest Municipal Code is hereby amended to read in its entirety as follows:

1. Single-Family Dwellings. In any district or area where single-family dwellings are a permitted use, permitted uses include the following:
a. Single-family detached dwellings;
Use C I PA UA CAN A1 OS
Group Homes X X X X X P25 X
Integral
Facilities X X X X X X X

25. In accordance with Chapter 5.44 (Group Homes)
Use MU 32 MU 43 MUO UI 25 UI 43
Group Homes P23 P23 X P23 P23
Integral Facilities X X X X X

23. In accordance with Chapter 5.44 (Group Homes)
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14 b. Group homes, including residential care facilities, in accordance with Chapter 5.44 (Group Homes);
c. Small and large family day care homes;
d. Limited home rentals.

SECTION 19. LFMC Section 9.112.020(C)(6) Amendment. Subsection (C)(6) of Section 9.112.020 (PC Planned Community District -General provisions and regulations) of the Lake Forest Municipal Code is hereby amended to read in its entirety as follows:

SECTION 20. LFMC Section 9.232.015 Amendment. Section 9.232.015 (Portola Bluff Residential District-Principal uses permitted) is hereby added to the Lake Forest Municipal Code to read in its entirety as follows:

The following principal uses are permitted:

Group homes, including residential care facilities, in accordance with Chapter 5.44 (Group Homes).

SECTION 21. LFMC Section 9.232.050 Amendment. Section 9.232.050 (Portola Bluff Residential District-Prohibited Uses) is hereby added to the Lake Forest Municipal Code to read in its entirety as follows:

The following uses are specifically prohibited:

A. Boarding houses;
B. Integral facilities;
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15 D. Storage of vehicles, equipment or products related to a commercial activity;
E. Use of chain-link fencing, except during construction activities; F. Transitory lodgings;
G. Any use not expressly permitted by this chapter.

SECTION 22. Recommendation. Based on the foregoing recitals and findings, the Planning Commission hereby recommends that the City Council approve and adopt the proposed Zoning Code Amendments (ZC 07-25-5816).

SECTION 23. Certification. The Planning Commission Chair shall sign and the Secretary shall attest to the adoption of this Resolution.

SECTION 24. Effective Date. This Resolution takes effect immediately upon its adoption.

APPROVED this 7th day of May, 2026, by the following vote, to wit:

AYES: COMMISSIONERS
NOES: COMMISSIONERS
ABSENT: COMMISSIONERS
ABSTAINED: COMMISSIONERS

MICHAEL STANNARD DATE
CHAIR

LAKE FOREST PLANNING COMMISSION
ATTEST:

GAYLE ACKERMAN, AICP DATE

DIRECTOR OF COMMUNITY DEVELOPMENT
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PC ATTACHMENT 2
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ZC 07-25-5816- Proposed Zoning Code Amendments
(Added text is underlined in red and deleted text is struck-through)

9.04.030 (D) Definitions.

Residential Care Facility: A residential facility licensed by the state where care, services, or treatment is provided to persons living in a supportive community residential setting. A residential care facility is a type of group home. Residential care facilities include, but are not limited to, the following: An intermediate care facility/developmentally disabled-habilitative or an intermediate care facility/developmentally disabled-nursing, as defined by California Health and Safety Code Section 1250; a congregate living health facility, as defined by California Health and Safety Code Section 1250; a community care facility, as defined by California Health and Safety Code Section 1502; a residential care Item: 4
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facility for the elderly, as defined by California Health and Safety Code Section 1569.2; a residential care facility for persons with chronic life-threatening illness, as defined by California Health and Safety Code Section 1568.01; an alcoholism or drug abuse recovery or treatment facility, as defined by California Health and Safety Code Section 11834.02; a pediatric day health and respite care facility, as defined by California Health and Safety Code Section 1760.2; or a family care home, foster home, or group home serving persons with mental health disorders or other disabilities or dependent and neglected children under California Welfare and Institutions Code Section 5116.

Chapter 9.44 R1 Single-Family Residential District

9.44.020 Principal uses permitted.

The following principal uses are permitted:

9.44.070 Prohibited uses.

Notwithstanding Sections 9.44.020 through 9.44.060, the following uses are specifically prohibited:

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Chapter 9.48 RS Residential Single-Family District

9.48.020 Principal uses permitted.

The following principal uses are permitted:

9.48.070 Prohibited uses.

Notwithstanding Sections 9.48.020 through 9.48.060, the following uses are specifically prohibited:

A. Apiaries;
B. Boarding houses;
C. Integral facilities
D. B. Keeping pets or animals for any commercial purpose unless otherwise provided for by an approved use permit;
E. C. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
F. D. Transitory lodgings;
G. E. Uses not expressly permitted by this chapter.

Chapter 9.56 R2 Multifamily Dwellings District

9.56.020 Principal uses permitted.

The following principal uses are permitted:

A. Multifamily dwellings with four or fewer dwelling units; B. Single-family dwellings;
C. Parks, playgrounds, and athletic fields (noncommercial); D. Group homes, including Rresidential care facilities, in accordance with Chapter 5.44 (Group Homes Residential Care Facilities); E. Small and large family day care homes;
F. Limited home rentals.

9.56.070 Prohibited uses.

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Notwithstanding Sections 9.56.020 through 9.56.060, the following uses are specifically prohibited:

A. Boarding houses;
B. Integral facilities;
C. A. Keeping pets or animals for any commercial purpose; D. B. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
E. C. Transitory lodgings;
F. D. Uses not expressly permitted by this chapter.

Chapter 9.64 R4 Suburban Multifamily Residential District

9.64.020 Principal uses permitted.

The following principal uses are permitted:

A. Multifamily dwellings with four or fewer dwelling units; B. Single-family dwellings;
C. Parks, playgrounds, and athletic fields (noncommercial); D. Group homes, including Rresidential care facilities, in accordance with Chapter 5.44 (Group Homes Residential Care Facilities); E. Small and large family day care homes;
F. Limited home rentals.

9.64.070 Prohibited Uses
Notwithstanding Sections 9.64.020 through 9.64.060, the following uses are specifically prohibited:

A. Boarding houses;
B. Integral facilities
C. A. Keeping pets or animals for any commercial purpose; D. B. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
E. C. Transitory lodgings;
F. D. Uses not expressly permitted by this chapter.

Chapter 9.68 RP Residential-Professional District

9.68.020 Principal uses permitted.

The following principal uses are permitted:

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A. Single-family detached dwellings;
B. Parks, playgrounds, and athletic fields (noncommercial); C. Group homes, including Rresidential care facilities, in accordance with Chapter 5.44 (Group Homes Residential Care Facilities); D. Small and large family day care homes;
E. Limited home rentals.

9.68.070 Prohibited uses.

Notwithstanding Sections 9.68.010 through 9.68.060, the following uses are specifically prohibited:

A. Adult entertainment businesses;
B. Boarding houses;
C. Integral facilities;
D. B. Keeping pets or animals for any commercial purpose; E. C. Massage establishments;
F. D. Transitory lodgings;
G. E. Uses not expressly permitted by this chapter.

Chapter 9.72 Non-Residential Zoning Districts
Table 9.72.090(A) Land Use Matrix
Chapter 9.73 Mixed-Use District
Table 9.73.065 Mixed-Use Land Use Matrix
Chapter 9.112 PC Planned Community District
Use C I PA UA CAN A1 OS
Group Homes X X X X X P25 X
Integral Facilities X X X X X X X

25. In accordance with Chapter 5.44 (Residential Care Facilities Group Homes)
Use MU 32 MU 43 MUO UI 25 UI 43
Group Homes P23 P23 X P23 P23
Integral Facilities X X X X X

23. In accordance with Chapter 5.44 (Residential Care Facilities Group Homes)
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9.112.020(C) General Regulations

1. Single-Family Dwellings. In any district or area where single-family dwellings are a permitted use, permitted uses include the following:
a. Single-family detached dwellings;
b. Group homes, including Rresidential care facilities, in accordance with Chapter 5.44 (Group Homes Residential Care Facilities); c. Small and large family day care homes;
d. Limited home rentals.

6. Prohibited Uses. Notwithstanding any other provision of this Code or of a PC text, the following uses are specifically prohibited in every planned community:
a. Apiaries;
b. Boarding houses;
c. Integral facilities;
d. b. Keeping pets or animals for any commercial purpose unless otherwise provided for by an approved use permit;
e. c. The storage of vehicles, equipment, or products related to a commercial activity not permitted in this district;
f. d. Transitory lodgings;
g. e. Uses not expressly permitted by this Code or an applicable PC text.

Chapter 9.232 Portola Bluff Residential District

9.232.015 Principal uses permitted
The following principal uses are permitted:

Group Homes, including Rresidential care facilities, in accordance with Chapter

5.44 (Residential Care Facilities Group Homes).

9.232.050 Prohibited Uses
The following uses are specifically prohibited:

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A. Boarding houses;
B. Integral facilities;
C. A. Keeping of pets or animals for any commercial purpose; D. B. Storage of vehicles, equipment or products related to a commercial activity;
E. C. Use of chain-link fencing, except during construction activities; F. D. Transitory lodgings;
G. E. Any use not expressly permitted by this chapter.

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CITY COUNCIL AGENDA REPORT
MEETING DATE: 07/07/2026
DEPARTMENT: Public Works
SUBJECT:

AWARD OF CONTRACT FOR PROFESSIONAL DESIGN SERVICES FOR
CAVANAUGH PARK IMPROVEMENTS (25P08)
RECOMMENDED ACTION(S):

1. Award a Professional Consultant Services Agreement to Glenn A. Rick Engineering & Development Company for Design Services of Neighborhood Park Renovations - Cavanaugh Park Improvements (25P08) in the amount of $589,107.

2. Authorize the Mayor to sign, and the City Clerk to attest, the award of contract to Glenn A. Rick Engineering & Development Company.

EXECUTIVE SUMMARY:

On February 3, 2026, the City Council approved the final Concept Plan (“Concept Plan”) for the redevelopment of Cavanaugh Park and directed staff to incorporate a phased construction approach into the final design due to anticipated impacts from the future El Toro Road/I-5 Interchange Improvement Project.

To advance the project, the City of Lake Forest (“City”) issued a Request for Proposals (“RFP”) for professional design services. Nine firms submitted proposals, which were evaluated in accordance with the City's Purchasing and Contracting Guidelines (“Purchasing Guidelines”). Following a comprehensive review of qualifications, interviews, and cost proposals, Glenn A. Rick Engineering & Development Company ("Rick Engineering") was determined to be the most qualified firm.

Staff recommend awarding the proposed Professional Consultant Services Agreement (“proposed Agreement”) to Rick Engineering in an amount not to exceed $589,107 for design services associated with the Cavanaugh Park Improvements Project (25P08) (“Project”) (Attachment 1). The Proposed Agreement is for three years with two one-year renewal options. Rick Engineering’s comprehensive approach to the Project is supported by favorable Item: 11
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references (Attachment 2). Funding for these services is included in the City's adopted 2025-2032 Capital Improvement Program.

BACKGROUND:

Cavanaugh Park is an approximately 7.5-acre park located between the I-5 Freeway and Gowdy Avenue. The park was originally built by the County of Orange prior to the City’s incorporation. In 2008, the City installed new landscaping and playground equipment at the park after completing a public outreach process in 2006.

On May 14, 2025, the City entered into a professional consultant services agreement with David Volz Design to provide a conceptual plan for the redevelopment of Cavanaugh Park. The future El Toro Road/I-5 Interchange Improvement Project, which involves coordination with the California Department of Transportation (“Caltrans”) and other agencies, is anticipated to significantly impact portions of the park site, including the existing playground and basketball court areas.

To preserve the City's investment while maintaining park functionality, the final Concept Plan was developed with a phased implementation strategy that accommodates future Caltrans improvements and minimizes the potential for reconstruction of newly completed facilities. On February 3, 2026, the City Council approved the final Concept Plan developed and proposed by David Volz Design, and directed staff to incorporate a phased construction approach into the final design due to anticipated impacts from the future El Toro Road/I-5 Interchange Improvement Project.

On January 5, 2026, the City Manager approved an RFP for Neighborhood Park Renovations for Cavanaugh Park (25P08) to acquire a consultant for professional design services and authorized staff to solicit proposals. The City issued the RFP on the City’s electronic bid management system, OpenGov, to secure a consultant.

DISCUSSION:

On February 24, 2026, the City received proposals in response to the RFP from the following nine (9) firms:
• BMLA, Inc.
• DVD Creative
Item: 11
1321
• Glenn A. Rick Engineering & Development Company
• IDS Group, Inc.
• Moore Iacofano Goltsman, Inc. (“MIG”)
• PBK Architects California, Inc.
• RJM Design Group, Inc.
• SWA Group
• VDLA Landscape Architects
Consistent with the City’s Purchasing Guidelines, staff assembled a Selection Committee approved by the City Manager to review proposals and participate in the selection process.

The Selection Committee was comprised of the following:
• Deputy City Manager
• Assistant Director of Public Works/ Assistant City Engineer • Recreation Manager
Technical Review and Interview Process
The review process has three phases: the Technical Review of written proposals, the Qualifications Interview phase, and the cost proposal evaluation. The Purchasing Guidelines require the Selection Committee to review all proposals submitted in response to the RFP.

During review of the technical proposals, the Selection Committee scored proposals based on criteria described in the RFP. The technical proposal scores are shown in Table 1 below. BMLA, Inc. was excluded from the evaluation process due to including their cost proposal within the technical proposal.

Table 1: Aggregate Scores Summary – Technical Review Phase Scoring Vendor Evaluator 1 Evaluator 2 Evaluator 3 Total Score
(Max Score
100)
Glenn A. Rick
Engineering &
Development
Company
84 78 78 80
RJM Design
Group, Inc 69 64 82 71.67
Item: 11
1322
Vendor Evaluator 1 Evaluator 2 Evaluator 3 Total Score
(Max Score
100)
SWA Group 60 87.5 66 71.17
VDLA
Landscape
Architects

72.5 71.5 60 68
PBK Architects
California, Inc. 51.5 80.5 40 57.33
IDS Group,
Inc. 62 51 50 54.33
DVD Creative 57 54 50.5 53.83
MIG 52.5 53.5 48.5 51.5
BMLA, Inc.

Excluded 0 0 0 0
Pursuant to the City's Purchasing Guidelines, the City invited firms that received a minimum average score of 60 points in the technical proposal phase to the interview phase of the selection process. During the interview phase, each of the four firms had the opportunity to discuss their respective approaches to the requested services. Table 2 shows the total scores for the Interview and Cost Proposal evaluation portion.

Table 2: Aggregate Scores Summary – Interview and Costing Review Vendor Evaluator 1 Evaluator 2 Evaluator 3 Total Score
(Max Score
200)
Glenn A. Rick
Engineering &
Development
Company
172.8 162.4 180 171.73
RJM Design
Group, Inc 166 142.8 162.8 157.2
SWA Group 157.8 169 129.8 152.2
VDLA
Landscape
Architects
100.8 120 118.4 113.07
Item: 11
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The scores reflect Rick Engineering as the firm with the highest qualifications, inclusive of its cost proposal. The Selection Committee recommends awarding the proposed Agreement to Rick Engineering due to its team’s experience with multi-disciplinary projects, having architectural and Civil engineering disciplines both in-house, and experience working on City projects and proposing a dedicated Caltrans coordinator for the project.

The proposed Caltrans coordinator is a former Caltrans employee with a thorough understanding of Caltrans’ requirements and guidelines. The Selection Committee determined that this unique experience would be valuable due to the required coordination with Caltrans in relation to I-5 interchange improvement impacts and known existing Caltrans utilities within the park that will require relocation.

Cost Proposals
Compensation for the Project is based on a time and materials basis for the specific tasks defined in the solicitation. At the conclusion of the interview process, the interviewed firms had the opportunity to submit a revised cost proposal. The revised cost proposals or the original, if a revised proposal was not submitted, were utilized for the selection of the most qualified, costeffective firms. Rick Engineering chose to submit a revised cost proposal.

Table 3 below describes the final cost proposals received.

Table 3: Cost Proposals
Firm Cost Proposal
Glenn A. Rick Engineering & Development Company $ 589,107 RJM Design Group, Inc $ 570,900
SWA Group $1,051,934
VDLA Landscape Architects $ 536,281
Rick Engineering earned the highest score overall, including scoring associated with the cost proposal. Although Rick Engineering was not the lowest cost proposer, the Selection Committee determined that its proposal provided the best overall value to the City. Rick Engineering demonstrated exceptional understanding of the Project's complexities, including the need for phased implementation, extensive stakeholder coordination, utility relocation considerations, and anticipated Caltrans involvement. Based on the firm's qualifications, project approach, interview performance, and cost proposal, the Selection Committee determined Rick Engineering to be the most qualified firm and the best value for the City. Staff checked references for Rick Engineering, and received positive reviews based on projects completed for other agencies.

Item: 11
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Proposed Agreement
The Public Works Department prepared the proposed Agreement with Rick Engineering, which the City Attorney reviewed and approved as to form.

The proposed Agreement’s Scope of Work requires the selected consultant to present the project to City Council at the 50% design stage, including the proposed Phase 1 and Phase 2 improvements, anticipated construction costs for each phase, initial site preparation costs, and potential park amenities that could be included in either phase. This presentation would provide City Council with an opportunity to provide feedback on project phasing, budget, and desired park amenities before the design is advanced further.

The proposed Agreement includes a total not-to-exceed compensation amount of $589,107 for a term of three years with two one-year renewal options. Per the City’s Purchasing Guidelines, the City Manager may approve additional work not-to-exceed 10% of the original contract amount. Staff recommend the City Council award the proposed Agreement with Rick Engineering to provide design services for the Cavanaugh Park Improvements.

FISCAL IMPACT:

Funding for the proposed Agreement is available within the adopted FY 2025- 26 and FY 2026-27 Capital Improvement Program budgets for the Cavanaugh Park Improvements Project (25P08). The Project is funded through the Neighborhood Park Improvement Reserve Fund. Sufficient appropriations are available to support the recommended action, and no additional budget adjustments are required at this time.

ATTACHMENTS:

1. Attachment 1 - Proposed Professional Consultant Services Agreement with Rick Engineering

2. Attachment 2 - Rick Engineering References
Initiated By: Nazila Mokarram, Assistant Director of Public Works/Assistant City Engineer
Submitted By: Douglas Erdman, Director of Public Works
Approved By: Debra Rose, City Manager
Item: 11
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Attachment 1
Item: 11
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NEIGHBORHOOD PARK RENOVATIONS FOR CAVANAUGH PARK
(25P08)
City of Lake Forest
100 Civic Center Dr.

Lake Forest, CA 92630
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1327
City of Lake Forest
Neighborhood Park Renovations for Cavanaugh Park (25P08) I. PARTIES AND DATE. ..............................................................................

II. RECITALS...............................................................................................

III. TERMS...................................................................................................

IV. SIGNATURES. ........................................................................................

V. EXHIBIT "A" SCOPE OF SERVICES ...........................................................

VI. EXHIBIT "B" - SCHEDULE OF SERVICES..................................................

VII. EXHIBIT "C" - COMPENSATION..............................................................

VIII. EXHIBIT "D" - INSURANCE REQUIREMENTS ...........................................

Attachments:

A - 26-01-12_Cavanaugh Park Final Concept Plan
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1328
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 3 1. PARTIES AND DATE.

This Agreement is made and entered into this [***INSERT DAY***] day of [***INSERT MONTH***], [***INSERT YEAR***], by and between the City of Lake Forest, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 100 Civic Center Drive, Lake Forest, California 92630 (“City”) and Glenn A Rick Engineering and Development dba Rick Engineering Company, a CaliforniaCorporation (Inc.) , with its principal place of business at 36 Discovery, Suite 240, Irvine, CA 92618 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.”
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1329
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 4 2. RECITALS.

2.1. Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional design, landscape architecture, civil & grading, lighting, playground & exercise equipment & park amenities, and hardscape design consulting services required by the City on the terms and conditions set forth in this Agreement. Consultant represents that it is experienced in providing professional design, landscape architecture, civil & grading, lighting, playground & exercise equipment & park amenities, and hardscape design consulting services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2. Project.

City desires to engage Consultant to render such professional design, landscape architecture, civil & grading, lighting, playground & exercise equipment & park amenities, and hardscape design consulting services for the Neighborhood Park Renovations - Cavanaugh Park (25P08) project ("Project") as set forth in this Agreement.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1330
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 5 3. TERMS.

3.1. Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional design, landscape architecture, civil & grading, lighting, playground & exercise equipment & park amenities, and hardscape design consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. Additionally, Consultant shall comply with all Federal requirements applicable to the Services as set forth in Exhibit “A-I.”

3.1.2 Term. The term of this Agreement shall be from July 22, 2026 to July 22, 2029, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement annually for no more than two (2) additional one-year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2. Responsibilities of Consultant.

3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, nor any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

3.2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant's conformance with the Schedule, City shall respond to Consultant's submittals in a timely manner. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1331
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 6 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the City. The key personnel for performance of this Agreement are as follows: Michael Taylor, PLA.

3.2.5 City's Representative. The City hereby designates Doug Erdman, Director of Public Works, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Work or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Work or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.2.6 Consultant's Representative. Consultant hereby designates Tim Henderson, PLA - Associate Principal, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided for herein. Any employee of the Consultant or its Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1332
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 7 sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re employed to perform any of the Services or to work on the Project.

3.2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If Consultant performs any work knowing it to be contrary to such laws, rules and regulations, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold City, its officials, directors, officers, employees, agents, and volunteers free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.11 Insurance. Consultant agrees to procure and maintain, at Consultant’s expense all insurance specified in Exhibit “D” attached hereto and by this reference incorporated herein. Consultant shall require all subconsultants to carry the same policies and limits of insurance that the Consultant is required to maintain, unless otherwise approved in writing by the City.

3.2.12 Water Quality Management and Compliance.

3.2.12.1 Storm Water Management. Storm, surface, nuisance, or other waters may be encountered at various times during the Services. Consultant hereby acknowledges that it has investigated the risk arising from such waters, and assumes any and all risks and liabilities arising therefrom.

3.2.12.2 Compliance with Water Quality Laws, Ordinances and Regulations. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1333
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 8 municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges.

3.2.12.3 Compliance with DAMP and LIP. In addition to compliance with the laws, ordinances and regulations listed in Section 3.2.12.2 of this Agreement, Consultant must comply with all applicable requirements of the Orange County Drainage Area Management Plan (“DAMP”), the City of Lake Forest Local Implementation Plan (“LIP”) and the applicable Water Quality Management Plan (“WQMP”). The DAMP contains requirements related to design and construction of public projects. Consultant must be familiar the DAMP, and the LIP and comply with the requirements as specified therein.

A copy of the DAMP is available on the internet at:
http://www.ocwatersheds.com/documents/damp/mapplan
A copy of the LIP is available on the internet at:
http://www.lakeforestca.gov/296/Local-Implementation-Plan-LIP

3.2.12.4 Standard of Care. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies described in Sections 3.2.12.2 and 3.2.12.3 of this Agreement. Consultant further warrants that it, its employees and subcontractors have or will receive adequate training, as determined by the City, regarding these requirements as they may relate to the Services.

3.2.12.5 Liability for Non-compliance.
(A) Indemnity: Failure to comply with laws, regulations, and ordinances listed in Sections 3.2.12.2 and 3.2.12.3 of this Agreement is a violation of federal and state law. Notwithstanding any other indemnity contained in this Agreement, Consultant agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the laws, regulations, and ordinances listed above, arising out of or in connection with the Services, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (B) Defense: City reserves the right to defend any enforcement action or civil action brought against the City for Consultant’s failure to comply with any applicable water quality law, regulation, or policy. Consultant hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and the relevant enforcement entity. (C) Damages: City may seek damages from Consultant for delay in completing the Services caused by Consultant’s failure to comply with the laws, regulations and policies described in Sections 3.2.12.2 and 3.2.12.3 of this Agreement, or any other relevant water quality law, regulation, or policy. regulation, or policy.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1334
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 9 3.3. Fees and Payments.

3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed FIVE HUNDRED EIGHTY-NINE THOUSAND ONE HUNDRED SEVEN DOLLARS ($589,107.00) without written approval of the City Council or City Manager as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges thereon. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein.

3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3.5 Rate Increases. In the event that this Agreement is renewed pursuant to Section 3.1.2, the rate set forth in Exhibit “C” may be adjusted each year at the time of renewal as set forth in Exhibit “C.”

3.4. Labor Code Requirements.

3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1335
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 10 agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4.2 Registration. If the Services are being performed as part of an applicable “public works” or “maintenance” project, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the project and require the same of any subconsultants. This project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR.

3.5. Accounting Records.

3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.6. General Provisions.

3.6.1 Termination of Agreement.

3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.

3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request.

3.6.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.6.1.4 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Glenn A Rick Engineering and Development dba Rick Engineering Company
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1336
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 11 36 Discovery, Suite 240
Irvine, CA 92618
ATTN: Tim Henderson, PLA - Associate Principal
City: City of Lake Forest
100 Civic Center Drive
Lake Forest, CA 92630
ATTN: City Clerk
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.6.2 Ownership of Materials and Confidentiality.

3.6.2.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require all subconsultants to agree in writing that City is granted a non exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.

3.6.2.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.6.2.3 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1337
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 12 notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the Release Notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of the Objection Notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and nonappealable order by a court of competent jurisdiction requires that City release such information.

3.6.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.6.4 Attorney's Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reason¬able attorney's fees and all other costs of such action.

3.6.5 Indemnification.

To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorneys fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the Consultant or the City, its officials, officers, employees, agents or volunteers.

If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.6.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.6.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County.

3.6.8 Time of Essence. Time is of the essence for each and every provision of this Agreement.

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Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 13 3.6.9 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project.

3.6.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.6.11 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.6.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

3.6.13 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.6.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

3.6.15 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.6.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.6.17 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant¬, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.6.18 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1339
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 14 because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.6.19 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.6.20 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.6.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.7. Subcontracting.

3.7.1 Prior Approval Required. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1340
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 15 4. SIGNATURES.

4.1. SIGNATURES.

CITY OF LAKE FOREST Glenn A Rick Engineering and Development dba Rick Engineering Company
By: [AUTHORIZED CITY SIGNATURE]
Robert Pequeño
Mayor
By: [VENDOR SIGNATURE 1]
Kai Ramer
President
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
ATTEST:

By: [CITY CLERK SIGNATURE]
Thy Merritt
City Clerk
By: [VENDOR SIGNATURE 2]
Joe Abbate
Chief Financial Officer (Corporation or LLC)
APPROVED AS TO FORM:

By: [CITY ATTORNEY SIGNATURE]
Best Best & Krieger LLP
City Attorney
[CONTRACT ADMINISTRATOR APPROVAL]
[PROJECT MANAGER APPROVAL]
[CITY CLERK - INSURANCE APPROVAL]
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1341
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 16 5. EXHIBIT "A" SCOPE OF SERVICES

5.1. EXHIBIT "A" SCOPE OF SERVICES
Consultant shall provide the following design, landscape architecture, civil & grading, lighting, playground & exercise equipment & park amenities, and hardscape design professional consulting services relative to the City's Neighborhood Park Renovations - Cavanaugh Park (25P08) project.

The following is a general outline of the Scope of Work to be provided by the consultant. While it is intended that this scope includes elements necessary to develop the project, consultant has conducted their own field reconnaissance and included any items they believe may have been overlooked.

Anticipated design services and improvements include the following as shown in the draft concept plan provided in Attachment A:
o Project Management and Coordination
o Environmental Clearance - the project is anticipated to be Categorically Exempt or Negative Declaration
o Records Research
o Topographic and boundary survey
o Geotechnical Investigation Report
o Hydrology and Hydraulics Report
o Stormwater Mitigation – Water Quality Management Plan (WQMP) o Drainage - Utilizing Low Impact Development (LID)
o Preliminary Design/Design Development
o Plans, Specifications, and Estimates (PS&E)
o Bid and Design Support Services During Construction Phase o Site demolition of existing improvements, including but not limited to:
▪ Basketball court
▪ Site wall and retaining wall
▪ Hardscape
▪ Landscape
▪ Site lighting
▪ Play equipment
▪ Irrigation system
▪ Miscellaneous features, including picnic table, trash receptacle, signs, etc.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1342
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 17 o Berm excavation and site grading that is sensitive to high visibility and neighborhood connectivity
o Resilient Rubber Play Surfaces
o Playground area, Ages 5-12
o Playground area, Ages 2-5
o Playground area with Multiple Climbing Forms
o Fitness Areas 1 -4 with various fitness and climbing elements o Stabilized Decomposed Granite Exercise Paths
o Paved Walkways – Along the Gowdy Avenue and within Park Interior o Picnic Shelters and Tables
o Open Lawn Areas
o Shrubs and Groundcover
o Large Specimen and accent trees
o Comprehensive Irrigation System designed to be compatible with City’s existing irrigation infrastructure (incl. Rainbird and Toro)
o Site Lighting – consistent with City standards and other parks throughout the City o All facilities to be ADA accessible and compliant with current codes, energy efficient, water use efficient, LID and water quality/runoff compliant, and low maintenance o Additional amenities such as hydration stations, and additional conduits for potential future additional lighting/camera
TASK 1 – PROJECT MANAGEMENT AND COORDINATION
The Consultant shall be fully responsible for the overall management and coordination of the project, which may include, but is not limited to, project development team meetings, liaison with affected agencies, and utility companies. Prepare progress reports and schedules, and secure permits for all field studies and any other required permits from other agencies.

TASK 2 – PRELIMINARY DESIGN
• Develop an understanding of the conceptual plan, the project site, and scope. • Conduct a kick-off meeting and subsequent bi-weekly meetings with City staff. • Provide a schedule and timeline showing activity and duration for each task, and relevant milestones and review periods.
• Compile and review existing record drawings.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1343
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 18 • Conduct site reconnaissance and site survey to confirm existing conditions. • Topographic and Boundary Surveying and Mapping
• Geotechnical Investigation, including but not limited to geotechnical exploration, infiltration testing, and geotechnical report
• Hydrology and Hydraulics Report
• Water Quality - The Consultant shall coordinate with the City regarding the Low Impact Development (LID) requirements for the project and prepare a Water Quality Management Plan (WQMP) if deemed necessary. The Consultant shall provide design for BMPs with appropriate sizes based on treatment and peak flow rates, transportation to the job site, and one year of maintenance, including units and costs in the engineer’s cost estimate. The selection of Best Management Practices (BMPs) will always depend on site-specific conditions, and the Consultant will be responsible for researching these conditions (e.g., depth to groundwater, soil conditions, interfering utilities, etc.) that might prevent infiltration. The Consultant shall also conduct the required soil and/or infiltration testing as needed to design the infiltration system, assuming it is the selected LID approach.
• Prepare an engineered base map that includes: the site boundary/property line, existing grades, locations of existing roads, utilities, facilities, and improvements, as well as identification of public right of ways and the location of relevant property ownership and easements. • Select furnishings and equipment for review consistent with City standards and amenities consistent at other parks throughout the City.
• Provide the findings and language for the submission of a Categorical Exemption to be filed by the City.
• Prepare conceptual/preliminary plans and support information such as materials boards etc. as necessary to convey design intent.
• Prepare an accurate cost estimate and identify any long lead items. • Provide value engineering and/or cost-saving alternatives for the City to consider.

Preliminary Plan Requirements:
• Placement of all new facilities and improvements including setbacks, and any hardscape and/or paving adjustments for typical pedestrian and maintenance vehicle ingress/egress into and around the new facilities and improvements.
• New Landscaping and Tree Plan.
• Preparation of a Water Quality Management Plan.
• Preparation of a Preliminary Grading Plan.
• Title Page with project title.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1344
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 19 • Scale and north arrow.
• A legend that references and clearly identifies, but is not limited to, all existing and proposed perimeter and interior sidewalks structures, trees, basketball court, park lighting, seating areas, paving/hardscape areas, fencing/walls and any/all site amenities. • Photo imagery of the proposed new facilities and improvements that are critical in communicating the design intent.
• Name, license number, address and phone number of firm. • Property lines and project limits, easements and/or setbacks.

Estimated Cost of Proposed Work
The Consultant is to prepare an initial opinion of probable construction costs for the proposed work. The cost estimate should be comprehensive and include all reasonable and relevant phases of construction and installation, even if a specific phase is not diagrammed or visually shown in the preliminary plan drawings, such as new irrigation, soil preparation, new utilities, security features, etc.

TASK 3 – CONSTRUCTION DOCUMENTS
Plans, Specifications, and Estimates (PS&E)
All reports, plans, specifications and quantity calculations shall conform to criteria, policies, procedures and standards of the City. The Consultant shall use the boilerplate for cut sheets, specifications and estimates provided by the City.

The plan development shall include three (3) milestone deliverables—30%, 60%, 90% (pre-final) and 100% (final). All plan sheets shall be prepared at a reasonable standard scale to be noted on plans. The necessary plans for each PS&E package shall include, but not limited to:

Design Development (30% plans)
Design development will involve the schematic development of plans based on the approved preliminary design plan.

Deliverables shall include a 30% set of plans, including site section studies, draft table of contents of technical specifications, and Opinion of Probable Cost.

Construction Documents (60% 90% and 100% plans)
Construction Documents (CDs) shall include finalizing approved deliverables from the Design Development phase. This includes the provision of detailed engineering and construction drawings that will serve as the basis for both bidding and construction by a general contractor. Deliverables shall also include final colored concept plan and colored renderings illustrating the improvements per the final plans.

Deliverables shall include 60%, 90% and 100% plans, structural calculations, final technical specifications, and “Opinion of Probable Cost” at each submittal.

Technical Specifications
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1345
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 20 The Consultant and their Sub-consultants shall provide technical specifications for all listed components to the City. The Consultant will coordinate the language between the general and technical specifications to minimize conflicts. City Staff will then combine these specifications with the City Boiler Plate to be published on Open Gov for bidding purposes.

Final Opinion of Probable Cost
Consultant shall provide a final opinion of probable construction costs, reflecting finalized plans, materials, systems, construction details, and known or anticipated changes in the bidding market related to the project.

If the project scope exceeds the available budget, the consultant shall recommend value engineering opportunities to reduce cost without significant impact to the overall programming and look and feel of the project. This can also include Day 1/Day 2 elements for staggering cost impacts.

Bid Advertisement, Design Support During Construction, and Record Drawings Consultant shall provide bidding phase services that will include but not be limited to:
• responding to RFIs
• preparing bid addenda
• providing design modifications as necessary to address RFIs • tabulating bid results and reviewing bid packages for responsiveness • providing summary recommendations to the City regarding lowest responsive and responsible bidder
Consultant shall provide design support services during construction that will include but not be limited to:
• responding to RFIs
• providing design modifications as necessary to address RFIs • reviewing material submittals
Consultant shall provide prepare record drawings based upon final completion of the construction and verification of contractor field redlines.

Phased Construction Approach
Based on the outcome of the City Council discussion for Item No. 7 at the February 3, 2026 Council Meeting, the City will be implementing a phased construction approach for the Cavanaugh Park Improvements Project. Consultants to propose value engineering measures and/or alternate concept elements, provided that the overall project intent and basic amenities are preserved. This RFP includes design services for both Phase 1 and Phase 2 of the project. Proposers shall provide separate cost tables for design services associated with each phase. Refer to Attachments #1 and #2 for the updated concept plan and preliminary construction cost information.

Caltrans Utilities and Right-of-Way Information
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1346
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 21 The City has obtained additional information related to existing Caltrans utilities and right-of-way conditions in and around Cavanaugh Park. Refer to Attachment #3 for currently available records. The successful consultant is expected to be resourceful and proactive in identifying, researching, and obtaining any additional records necessary to complete design services within the scope of work.

PHASED DESIGN APPROACH AND REFINED SCOPE OF WORK

1. Project Intent and Basis of Design
The City of Lake Forest seeks professional design services to prepare final construction documents for the redevelopment of Cavanaugh Park consistent with the City Council–approved Concept Plan and a phased construction approach. The selected consultant shall provide all professional services necessary to deliver a complete, bid-ready design for Phase 1 and a fully developed design for Phase 2, accounting for budget constraints, Crime Prevention Through Environmental Design (CPTED) principles, and anticipated impacts from the future I-5 / El Toro Road Interchange Project.

The total conceptual construction cost for the project is estimated at approximately $10.9 million, exclusive of design and Construction Management/Construction Inspection (CM/CI) costs. The project shall be designed to support phased implementation as follows:
• Phase 1: Approximately $7.0 million construction budget • Phase 2: Remaining improvements to be constructed following completion of the I-5 / El Toro Road Interchange Project
The consultant shall proactively incorporate value engineering strategies, alternative design concepts, and phased construction options, provided that project intent, safety objectives, CPTED principles, and core park amenities are preserved.

2. Phased Design Framework and Council Review Milestone The consultant shall prepare the project using a two-phase design and construction strategy. Design for both phases shall proceed concurrently to ensure long-term cohesion, CEQA consistency, and constructability, while construction will occur in phases.

At approximately 50% design, the consultant shall present the phased design approach to City Council.

This presentation shall include:
• Confirmation of all Phase 1 site preparation and grading elements • A menu of park amenities proposed for Phase 1, including quantities, design intent, and planning-level construction cost estimates
• Identification of optional amenities, bid alternates, and deferred improvements • Preliminary Phase 2 design concepts and cost projections City Council input at this milestone shall be used to confirm the final Phase 1 construction scope and guide completion of the final design for both phases.

3. Phase 1 – Base Design Priority
Phase 1 shall include two required components:

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Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 22 1. Complete site preparation and grading, and

2. A selectable list of park amenities with associated costs for City Council consideration.

A. Site Preparation, Grading, and Infrastructure (Required) The consultant shall prepare full construction documents for all work necessary to level and prepare the site for park amenities, including:
• Removal of the existing berm/mounded area in the northern portion of the park to improve visibility and clear sightlines to the existing freeway sound wall and surrounding streets • Comprehensive grading and earthwork to establish finished park grades, address drainage, and meet CPTED objectives
• Grading strategies that account for anticipated freeway widening impacts and avoid future rework • Identification and coordination of existing utilities, including utilities known to exist beneath the berm • Proposed utility relocations or protections as required • ADA-compliant parking stalls and accessible routes.
• Concrete access paths necessary to support Phase 1 amenities and overall park functionality All site preparation work shall be designed to support both Phase 1 and future Phase 2 improvements without regrading or demolition.

B. Phase 1 Park Amenities – Council Selection Menu
The consultant shall develop a list of park amenities eligible for inclusion in Phase 1. Each amenity shall include a planning-level cost estimate to allow City Council to determine final inclusion. Amenities may include, but are not limited to:
• New shaded playground located outside the future Caltrans impact area • Playground surfacing and associated safety improvements • Basketball court relocation and construction, including approved striping (e.g., fraction ball) • Site furnishings, seating, and shade structures
• Limited landscaping focused on safety, durability, and visibility • Lighting improvements supporting CPTED objectives
Amenities selected by City Council at the 50% design milestone shall be incorporated into the final Phase 1 construction documents. Unselected amenities may be deferred to Phase 2 or identified as bid alternates.

4. Phase 2 – Deferred Improvements
The consultant shall prepare a complete design package for Phase 2 improvements, which includes:
• Multi-use trail system with bollard lighting
Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1348
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 23 • Exercise stations
• Picnic areas, seating, drinking fountains, and remaining site amenities • Completion of landscaping and aesthetic enhancements
• Improvements located within areas potentially impacted by the future I-5 / El Toro Road Interchange Project
Construction of Phase 2 improvements shall be deferred to avoid rework and conflicts with Caltrans activities.

5. Records Research and Existing Conditions
• The City will provide available record drawings, GIS data, utility records, Caltrans right-of-way information, and conceptual design files.
• The consultant shall proactively research, obtain, and verify additional records as needed. • Additional topographic surveys, utility investigations, subsurface utility engineering (SUE), or potholing shall be proposed as necessary to complete the design.

6. Agency Coordination and Permitting
• Coordination with Caltrans is anticipated and required. • The consultant shall lead coordination with Caltrans for plan review, permitting, and approvals, with City support as liaison.
• The proposed scope and schedule shall include adequate time for agency review and approvals.

7. Environmental (CEQA) Support
• The City will serve as CEQA Lead Agency.
• The consultant shall prepare all technical studies necessary to support CEQA compliance (anticipated Mitigated Negative Declaration), including geotechnical, noise, air quality, health risk, traffic, biological, cultural, tribal cultural, paleontological, and hydrology studies. • The consultant shall coordinate with the City’s CEQA consultant and provide up to two rounds of revisions per study at no additional cost.

8. Cost Estimating and Value Engineering
• Prepare detailed construction cost estimates for Phase 1 and Phase 2. • Support value engineering to align Phase 1 with the established construction budget. • Clearly identify bid alternates, deferred elements, and phasing strategies.

9. Construction Documents and Deliverables
• Prepare complete, bid-ready construction documents in AutoDesk (CAD) and PDF formats. • Provide record drawings in editable CAD and PDF formats for all disciplines.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1349
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 24 10. Meetings, Bidding, and Construction Support – Phase 1 • Attend kickoff, milestone, pre-construction, and issue-resolution meetings. • Respond to RFIs and provide design clarifications during bidding and construction. • Construction support is limited to Phase 1.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1350
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 25 6. EXHIBIT "B" - SCHEDULE OF SERVICES

6.1. EXHIBIT "B" - SCHEDULE OF SERVICES
The Consultant shall provide the services described in Exhibit “A” Scope of Services as directed by the City.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1351
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 26 7. EXHIBIT "C" - COMPENSATION

7.1. EXHIBIT "C" - COMPENSATION
Boilerplate language to introduce not to exceed amount and schedule and terms for compensation:

Consultant shall be paid for services in accordance with Section 3.3 of the Agreement and as described above under Exhibit “A” Scope of Services and the not to exceed fee of FIVE HUNDRED EIGHTY-NINE THOUSAND ONE HUNDRED SEVEN DOLLARS ($589,107.00). Compensation shall be paid per the following schedule and terms.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1352
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 27 Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1353
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 28 In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Long Beach-Anaheim.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1354
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 29 8. EXHIBIT "D" - INSURANCE REQUIREMENTS

8.1. EXHIBIT "D" - INSURANCE REQUIREMENTS

1.1.1 Time for Compliance. Consultant shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section.

1.1.2 Types of Insurance Required. As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, supplement or endorse the policies to do so. (A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 0001, or the exact equivalent, with limits of not less than $1,000,000 per occurrence and no less than $2,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); or (3) containing any other exclusion(s) contrary to the terms or purposes of this Agreement.
(B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 0001 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $1,000,000 combined limit for each occurrence. (1) a Personal Automobile Liability policy for the Consultant's own vehicle stipulating "Automobile Liability Insurance with a limit of not less than $1,000,000 each accident"; or (2) a non-owned auto endorsement to the Commercial General Liability policy if Consultant uses vehicles of others (e.g., vehicles of employees).
(C) Workers’ Compensation: Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease.
(D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $1,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1355
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 30 (E) Pollution Liability: Pollution Liability Insurance covering all of the consultant’s operations to include onsite and offsite coverage for bodily injury (including death and mental anguish), property damage, defense costs and cleanup costs with limits of not less than $5,000,000 per loss and $10,000,000 total all losses. The policy shall contain no endorsements or provisions limiting contractual liability or coverage for cross liability of claims or suits by one insured against another. If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement.

1.1.3 Insurance Endorsements. Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of this Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (C) Professional Liability (Errors & Omissions):
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Contractual Liability Exclusion Deleted: This insurance shall include contractual liability applicable to this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.
(D) Workers’ Compensation:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1356
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 31 (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

1.1.4 Primary and Non-Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or selfinsurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

1.1.5 Waiver of Subrogation. All policies of Commercial General Liability and Automobile Liability insurance shall contain or be endorsed to waive subrogation against the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its officials, officers, employees, agents, and volunteers, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

1.1.6 Deductibles and Self-Insured Retentions. Any deductible or self-insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

1.1.7 Evidence of Insurance. The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

1.1.8 Failure to Maintain Coverage. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement effective upon notice.

1.1.9 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1357
Title: Neighborhood Park Renovations for Cavanaugh Park (25P08) 32 1.1.10 Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

1.1.11 Requirements Not Limiting. Requirement of specific coverage or minimum limits contained in this Appendix are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

1.1.12 Insurance for Subconsultants. Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All policies of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endorsement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

Docusign Envelope ID: 912C0A4A-F9A9-88C4-8318-BFFF61E2C481 Item: 11 1358
Attachment 2
Item: 11
1359
Contact #1: Contact #2: Contact #3:

Rick Engineering Kasia Trojanowska Riley DeWitt-Rickards Yovanna Lewis Phone No. (858) 565-3600 (619) 695-6010 (619) 533-5130
Email [email protected] [email protected] [email protected]

QUESTION RESPONSE RESPONSE RESPONSE

1. Title and type of project Felicita County Park Village View Park Wangenheim Joint-Use Facility & Park2. Contract Amount $1,100,000 $557,500 $370,000

3. How would you rate the quality of work? The quality of work met the requirements of the project. Very Good Very Good

4. How well did they adhere to the budget?
They adhered to the established budget
parameters and managed costs
responsibly throughout the project.

Very Good Very Good

5. Rate day-to-day communication with the firm. Communication was consistent and adequate for project needs. Very Good Very Good

6. Would you hire the firm again?
Rick is on the County DPR As-Needed
Master Agreement; we continue to work
with them on multiple projects.

Yes Yes

7. Do you have any additional comments or information regarding your experience with the firm? Overall, the project proceeded as
expected, and our working relationship
with the firm has remained steady
across various assignments.

Overall great to work with and a very
knowledgeable team. Their stormwater
expertise was an incredible asset on the
Village View project, and the playground
and skatepark they designed were both
really top-notch and features that the
community continues to love and talk
about.

Great avilability to address
emergenecies due to field conditions
during construction in a short time. Civil
PM was great too!
Neighborhood Park Renovations - Cavanaugh Park Improvements (25P08) 1360

CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/7/2026
DEPARTMENT: City Attorney
SUBJECT:

DISCUSSION REGARDING CITY COUNCIL TERM LIMITS
RECOMMENDED ACTION(S):

1. Discuss revising the City of Lake Forest’s (“City”) Term Limit Ordinance and potentially:

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

OF THE CITY OF LAKE FOREST, CALIFORNIA, CALLING AND

GIVING NOTICE OF HOLDING A GENERAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 3, 2026, CALLING FOR THE

PLACEMENT OF A MEASURE AS REQUIRED BY PROVISION OF THE

LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL

LAW CITIES AND REQUESTING THE BOARD OF SUPERVISORS

CONSOLIDATE THE GENERAL ELECTION WITH THE STATEWIDE

GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT
TO SECTION 10403 OF THE ELECTIONS CODE.

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

OF THE CITY OF CITY OF LAKE FOREST, CALIFORNIA, PROPOSING

AND SUBMITTING TO THE VOTERS AT THE GENERAL MUNICIPAL
ELECTION TO BE HELD ON NOVEMBER 3, 2026, A BALLOT

MEASURE PROPOSING TO ADOPT AN ORDINANCE TO REVISE

CITY COUNCIL TERM LIMITS TO TWO TERMS, SUBJECT TO A
FOUR-YEAR BREAK IN SERVICE ; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND AUTHORIZING AND

SETTING DEADLINES FOR THE FILING OF ARGUMENTS FOR OR
AGAINST THE BALLOT MEASURE.

EXECUTIVE SUMMARY:

At its December 16, 2025, meeting, the City Council directed the City Attorney to return with information regarding potential updates to the City of Lake Forest’s voter-approved Term Limit Ordinance, including a review of recent term-limit actions taken by other Orange County cities, for the purpose of evaluating whether to place a measure before the voters.

Item: 12
1361
The City’s current term limits were adopted by the electorate in 2018 and limit the Mayor and City Councilmembers to two consecutive four-year terms. Since that time, several Orange County cities have revisited and revised their term-limit provisions through voter-approved ballot measures, reflecting a broader regional trend toward reassessing council tenure, consecutive versus lifetime limits, and alignment with district-based election systems. The attached, proposed ballot measure would revise current term limits to allow for two consecutive four-year terms of office, with eligibility again after a four-year break in service.

Because the City’s existing Term Limit Ordinance was approved by the voters, any amendment would likewise require voter approval. If the City Council wishes to place a measure before the electorate, it must adopt resolutions calling the election (Attachment 1), establishing argument deadlines, and directing preparation of an impartial analysis for the voter information guide (Attachment 2).

The deadline to place a measure on the November 3, 2026, general election ballot is August 7, 2026.

BACKGROUND:

The City’s current term limits were last enacted in 2018, when voters approved a ballot measure limiting the Mayor and City Councilmembers to two consecutive four-year terms. This essentially created a lifetime cap of two, fouryear terms.

At its January 20, 2026, meeting, the City Council directed the City Attorney to return with a discussion regarding potential updates to the City’s Term Limit Ordinance, including a review of recent term-limit actions taken by other local cities.

DISCUSSION:

The proposed ballot measure before the City Council would allow for two consecutive four-year terms of office, with eligibility again after a four-year break in service.

In recent years, several Orange County cities have revisited and revised their local term-limit provisions through voter-approved ballot measures, reflecting a broader regional trend toward reassessing governance structures and council tenure. In 2022, voters in Aliso Viejo approved a ballot measure establishing term limits for City Councilmembers, limiting service to two consecutive fouryear terms, with provisions addressing partial terms and appointments.

Item: 12
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During the November 2024, General Municipal Election, voters in multiple Orange County cities adopted additional term-limit changes. In La Palma, the electorate approved a measure revising City Council term limits to allow service for up to three consecutive four-year terms, with eligibility to serve again after a four-year break in service, with the new limits applied prospectively. In Tustin, voters approved a comprehensive governance measure that, among other changes, revised term limits for the Mayor and City Council to align with the City’s transition to district-based elections and an elected mayoral structure.

Also in 2024, voters in Los Alamitos adopted a charter amendment establishing term limits for City Councilmembers elected by district, limiting service to three consecutive terms, with eligibility to serve again after a one-year break in service. That same election cycle, the electorate in Stanton approved a ballot measure imposing a two-term lifetime limit for the office of Mayor, distinguishing mayoral term limits from those applicable to other council offices.

In addition, Laguna Beach is currently considering a voter initiative that would impose term limits on City Councilmembers. While not yet adopted, the initiative has qualified for the November 3, 2026, ballot and proposes limiting service to two consecutive four-year terms, with a required waiting period before eligibility to serve again.

As the current City Term Limit Ordinance was approved by the voters, any amendment to the Municipal Code related to term limits would also require voter approval. Should the City Council desire to place a measure before the voters changing term limits, the process consists of adopting a resolution calling the election, establishing deadlines for the filing of primary and rebuttal arguments, and directing the City Attorney to prepare an impartial analysis of the proposed measure to be printed in the voter guide.

The deadline to place a measure on the November 3, 2026, statewide general election is August 7, 2026. To facilitate the discussion, the City Attorney has prepared a draft ordinance providing for two consecutive four-year terms of office, with eligibility again after a four-year break in service, along with the requisite resolution(s). The City Council may adopt the Resolutions as presented, direct revisions be brought back at a future meeting, or receive and file the information.

FISCAL IMPACT:

Approving the recommended actions would incur a cost of approximately $8,500 to place the measure on the November 3, 2026, General Municipal Election.

Item: 12
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ATTACHMENTS:

1. Attachment 1 - Resolution Calling a General Municipal Election

2. Attachment 2 - Resolution Proposing and Submitting to the Voters a Ballot Measure to amend the Term Limit Ordinance for the City of Lake Forest Initiated By: Thy Merritt, City Clerk
Submitted By: Matthew Richardson, City Attorney
Approved By: Debra Rose, City Manager
Item: 12
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ATTACHMENT 1
Item: 12
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.\45103547.1
RESOLUTION NO. 2026-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAKE FOREST, CALIFORNIA, CALLING AND GIVING

NOTICE OF HOLDING A GENERAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 3, 2026, CALLING FOR THE

PLACEMENT OF A MEASURE AS REQUIRED BY

PROVISION OF THE LAWS OF STATE OF CALIFORNIA

RELATING TO GENERAL LAW CITIES AND REQUESTING

THE BOARD OF SUPERVISORS CONSOLIDATE THE

GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE

GENERAL ELECTION TO BE HELD ON THE SAME DATE
PURSUANT TO SECTION 10403 OF THE ELECTIONS
CODE
WHEREAS, pursuant to the requirements of the laws of the State of California relating to general law cities, the City Council of the City of Lake Forest requests that a General Municipal Election shall be held on November 3, 2026, to submit to the voters at the election a question relating to term limits; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places, and election officers of the two elections be the same, and that the Registrar of Voters of the County of Orange canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Lake Forest, California, on Tuesday, November 3, 2026, a General Municipal Election for the purpose of a ballot measure to be placed on the Statewide General Election ballot to revise the term limits applicable to the offices of the members of the City Council within the City of Lake Forest; and does hereby submit to the voters at the General Municipal Election the following question:

Lake Forest Election Reform and Voter Choice Measure
Shall the measure limiting city council members to two consecutive terms in office with a mandatory four-year out of office period before being eligible to serve for another two consecutive terms in office, be adopted? Yes No
Item: 12
1366
.\45103547.1
SECTION 2. Pursuant to Elections Code 9217, the vote requirement for the measure to pass is a majority.

SECTION 3. The City Council, pursuant to the requirements of Section 10403 of the Elections Code, hereby requests the Board of Supervisors of the County of Orange to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 3, 2026, for the purpose of ordering a ballot measure to be placed on the Statewide General Election ballot for the election to be held in the City of Lake Forest, to revise the term limits applicable to the offices of the members of the City Council within the City of Lake Forest.

SECTION 4. The Orange County Registrar of Voters is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

SECTION 5. The Board of Supervisors is requested to issue instructions to the Orange County Registrar of Voters to take any and all steps necessary for the holding of the consolidated election.

SECTION 6. The City of Lake Forest recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

SECTION 7. The ballots to be used at the election shall be in form and content as required by law.

SECTION 8. The City Clerk is authorized, instructed and directed to coordinate with the Orange County Registrar of Voters to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 9. The Ballot Drop Boxes and Vote Centers for the election shall be open according to the schedule established by the Orange County Registrar of Voters, pursuant to Election Code § 10242, except as provided in §§ 14212, 14401 of the Elections Code of the State of California.

SECTION 10. In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 11. Notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 12. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar of Voters of the County of Orange.

Item: 12
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.\45103547.1
SECTION 13. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Forest on the 7th of July, 2026. ___________________________
Robert Pequeño Mayor
ATTEST:
__________________________________
Thy Merrit
City Clerk
Item: 12
1368
.\45103547.1

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 was adopted by the City Council of said City at a regular meeting of said City Council held on the XX day of July, 2026, and that it was so adopted by called vote as follows:

AYES:

NOES:
________________________________
Thy Merritt
City Clerk
Item: 12
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ATTACHMENT 2
Item: 12
1370
.\45103603.1
RESOLUTION NO. 2026-__

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

CALIFORNIA, PROPOSING AND SUBMITTING TO THE VOTERS AT

THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER
3, 2026, A BALLOT MEASURE PROPOSING TO ADOPT AN

ORDINANCE TO REVISE CITY COUNCIL TERM LIMITS TO TWO
TERMS, SUBJECT TO A FOUR-YEAR BREAK IN SERVICE;

DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL
ANALYSIS; AND AUTHORIZING AND SETTING DEADLINES FOR THE

FILING OF ARGUMENTS FOR OR AGAINST THE BALLOT MEASURE
WHEREAS, the City Council has been subject to term limits since the passage of Measure X in 2014; and
WHEREAS, the City Council discussed the question of term limits at the January 20, 2026 regular meeting and staff gave an overview and report on the status of term limits throughout Orange County, and directed the preparing of ballot measure language to modify term limits to two consecutive terms with a four-year break in service.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Forest, California, as follows:

SECTION 1. That the above recitals are true and correct and are incorporated by this reference.

SECTION 2. The City Council, pursuant to its right and authority, does order a ballot measure to be placed on the Statewide General Election ballot for the election to be held in the City of Lake Forest, California, on November 3, 2026, to revise the term limits applicable to the offices of the members of the City Council within the City of Lake Forest; and does hereby submit to the voters at the General Municipal Election the following question:

Lake Forest Election Reform and Voter Choice Measure
Shall the measure limiting city council members to two consecutive terms in office with a mandatory four-year out of office period before being eligible to serve for another two consecutive terms in office, be adopted? Yes No
SECTION 3. That the proposed complete text of the Ordinance submitted to the City’s voters as a ballot measure is attached hereto as Exhibit A and incorporated herein by his reference.

SECTION 4. That the City Clerk is directed to submit a copy of the above-described ballot measure to the City Attorney, after which, the City Attorney is directed to prepare an impartial analysis of the proposed ballot measure pursuant to Elections Code section 9280. The impartial analysis of the measure shall show the effect of the measure on the existing law and the operation of the measure. The impartial analysis shall not exceed five Item: 12
1371
.\45103603.1
hundred (500) words in length and shall be filed with the City Clerk by 5:30 p.m. on July 31, 2026.

SECTION 5. That, pursuant to Section 9282(b) of the Elections Code, which provides that for measures placed on the ballot by the City Council, the City Council or any member or members of the City Council authorized by the City Council may submit an argument for or against the ballot measure, the City Council hereby authorizes any City Council member or members to prepare and file a written argument for or against the ballot measure with the City Clerk on or before July 31, 2026, by 5:30 p.m., which argument shall not exceed three hundred (300) words in length.

SECTION 6. That any person wishing to submit a direct argument for or against the ballot measure shall file such argument with the City Clerk on or before July 31, 2026, by 5:30 p.m., which argument shall not exceed three hundred (300) words in length.

SECTION 7. That any rebuttal arguments for or against the ballot measure shall be filed with the City Clerk on or before August 10, 2026, by 5:30 p.m. and shall not exceed two hundred fifty (250) words in length.

SECTION 8. That the selection of arguments for printing and distribution to the voters shall be in accordance with Sections 9282 and 9287 of the Elections Code.

SECTION 9. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

SECTION 10. That this Resolution shall become effective immediately upon its adoption.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Forest on the 7th of July, 2026.
___________________________
Robert Pequeño
Mayor
ATTEST:
___________________________________________
Thy Merritt
City Clerk
Item: 12
1372
.\45103603.1

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 was adopted by the City Council of said City at a regular meeting of said City Council held on the 7th day of July, 2026, and that it was so adopted by called vote as follows:

AYES:

NOES:
_______________________________
Thy Merritt
City Clerk
Item: 12
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.\45103603.1
Exhibit A
Item: 12
1374
.\44532447.1
ORDINANCE NO. ___

AN ORDINANCE OF PEOPLE OF THE CITY OF LAKE
FOREST, CALIFORNIA, AMENDING SECTION 2.04.080

OF THE LAKE FOREST MUNICIPAL CODE TO

CHANGE THE TERMS OF OFFICE ALLOWED FOR

CITY COUNCILMEMBERS FROM TWO TERMS

MAXIMUM TO TWO CONSECUTIVE TERMS WITH

ADDITIONAL TERMS ELIGIBLE FOLLOWING A FOUR

YEAR BREAK IN SERVICE
THE PEOPLE OF THE CITY OF LAKE FOREST DO ORDAIN AS FOLLOWS:

SECTION 1. Municipal Code Amendment. Section 2.04.080 of the Lake Forest Municipal Code is hereby amended to read as follows:

Sec. 2.04.080 – Term Limits
(a) No person shall be eligible to serve in the office of City Council member or Mayor for more than two consecutive four-year terms.

Any person may hold office as a member of the City Council or Mayor for an additional two consecutive terms if he or she does not hold office as a member of the City Council or Mayor for four or more consecutive years immediately following the conclusion of each two consecutive terms of office as a member of the City Council or Mayor. There is no limit to the number of times a person may serve two consecutive terms with the requisite four year break in service. (b) If a person serves for at least two years of a term, that person for purposes of subsection (a) of this section shall be considered to have served a full four-year term.

SECTION 2. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase added by this Ordinance, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity of effectiveness of the remaining portions of this Ordinance or any part thereof.

SECTION 3. Effective Date. This Ordinance shall become effective only upon adoption by a majority of the people voting on the measure to adopt this Ordinance at the general municipal election on November 3, 2026. This Ordinance shall be considered as adopted upon the date that the vote on this Ordinance is declared by the City Council for the City of Lake Forest, and shall go into effect 10 days after that date.

SECTION 4. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by the voters of the City of Lake Forest by signing where indicated below.

Item: 12
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.\44532447.1
I hereby certify that the foregoing Ordinance was PASSED, APPROVED, and ADOPTED by the People of the City of Lake Forest, California, voting on the 3rd day of November, 2026.
____________________________
Robert Pequeño, Mayor
City of Lake Forest,
California
ATTEST:
_______________________________________
Thy Merritt City Clerk
Item: 12
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/7/2026
DEPARTMENT: City Clerk
SUBJECT:

CITY COUNCIL AND CITY COMMISSIONER COMPENSATION
RECOMMENDED ACTION(S):

1. Provide direction regarding a possible increase to City Council compensation, or introduce for first reading an Ordinance entitled: AN ORDINANCE OF THE

CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA,

INCREASING COMPENSATION FOR MEMBERS OF THE CITY COUNCIL

AND FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND

2. Provide direction regarding a possible increase to Commissioner compensation, or adopt a Resolution entitled: A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA REGARDING

COMPENSATION RECEIVED BY LAKE FOREST COMMUNITY SERVICE

COMMISSIONERS, PLANNING COMMISSIONERS, AND TRAFFIC AND

PARKING COMMISSIONERS AND FINDING THE ACTION EXEMPT FROM

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
EXECUTIVE SUMMARY:

At its June 2, 2026, meeting, the City Council directed staff to prepare an item for a future City Council meeting addressing a possible increase in City Council compensation. The City Council’s current compensation is $704.00 per month.

Pursuant to Government Code section 36516(a)(4), the City Council may increase its salary by up to 5% for each calendar year since the last salary adjustment in 2008 or by following the California Consumer Price Index (“CPI”).

In summary, the City Council would be able to adjust its current compensation to any amount between $739.69 and $1,337.60.

At its June 16, 2026, meeting, the City Council directed staff to prepare an item for a future City Council meeting addressing a possible increase in Commissioner compensation. The City has three formal commissions established by the City Council: the Planning Commission, the Traffic & Parking Commission, and the Community Services Commission. To help offset the costs associated with commission participation, the City provides a monthly stipend to members of each commission. The monthly stipend is established via City Item: 13
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Council resolution. Currently, members of each commission receive a $118 stipend per meeting. The City Council may increase Commissioner compensation based on applicable CPI, which would result in an amount not-toexceed $124 per meeting and not-to-exceed $248 per month, per Commissioner.

State law governs the process by which City Council compensation is increased and requires that any increases be performed via ordinance. This report outlines the process by which the City Council’s compensation may be increased, and presents the proposed Ordinance for increasing City Council compensation to an amount determined by the City Council (Attachment 1) and a proposed Resolution (Attachment 2) for increasing Commissioner compensation.

BACKGROUND:

City Council Compensation
The City Council’s compensation is currently $704.00 per month, as approved by the City Council via Ordinance No. 198 in 2008. California Government Code section 36516(a)(4) allows the City Council to periodically adjust its compensation by ordinance using one of the following methods:

1. By an amount not exceeding five percent per year since the last salary adjustment; or,

2. By an amount equal to inflation since January 1, 2024, based on the CPI, not-to-exceed ten percent in any calendar year.

In addition to state law, the City adopted Resolution No. 2006-20 (“2006 Resolution”), which establishes local requirements for increasing City Council compensation (Attachment 3). The 2006 Resolution provides that CPI-based increases “in no event shall exceed five percent (5%).” The 2006 Resolution is consistent with the prior version of Government Code section 36516(a)(4), which historically capped such increases at five percent per year. Although state law was amended in 2024 to allow CPI-based increases of up to ten percent per year, the change does not affect the current calculation because the applicable CPI increase remains below five percent.

Commissioner Compensation
Currently, each commission meets about ten times per year per the following schedule:

Item: 13
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Commission Monthly Meeting Date
Community Services 1st Wednesday
Planning 1st Thursday
Traffic & Parking 1
st Monday
To help offset the costs associated with commission participation, the City Council has authorized, via the 2006 Resolution, to provide a monthly stipend of $118 per meeting to members of each commission.

DISCUSSION:

City Council Compensation Methods
The City Council’s current compensation is $704.00 per month. Pursuant to Government Code section 36516(a)(4), the City Council may increase its salary by the greater of the following formulas:

1. Method 1 – Annual Increase
a. Maximum Increase = (Current Salary) × (0.05 × Number of Years Since Last Adjustment)

2. Method 2 – CPI Increase
a. Maximum Increase = (Current Salary) × (CPI
inflation increase since Jan. 1, 2024)
Method 1
Under the first method, the City Council may increase compensation by up to 5% for each calendar year since the last salary adjustment in 2008. This results in 18 eligible calendar years (2009 - 2026). Accordingly, the City Council may increase each member’s salary by up to 90% (5% x 18 years). This would produce a maximum increase of $633.60 for a total of $1,337.60 per month.

Method 2
The second method follows the California CPI. Since California CPI is updated on even-numbered months, the first published CPI in 2024 was in February, and was reported at 338.496. The most recently published CPI is from December 2025 and was reported at 355.343. Based on these two numbers, the percent increase between February 2024 and December 2025 is 4.97%. Therefore, the City Council may increase each member’s salary by up to 4.97%, which would produce a maximum increase of $34.98 for a total salary of $738.98 per month.

In summary, the City Council would be able to adjust its current compensation to any amount between $738.98 and $1,337.60 per month.

Item: 13
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Compensation Framework
The City’s existing compensation framework, found in the 2006 Resolution, provides that “[a]ny increase in compensation for City Council Members shall be based on the cumulative amount of the previous two years’ CPI, rounded up to the nearest whole dollar,” with the Director of Finance responsible for calculating available increases based on the most recently available CPI data at the time the Council considers such adjustment. The 2006 Resolution further specifies that, “[f]or purposes of determining the two-year cumulative amount of CPI, in no event shall any year’s adjusted amount exceed five percent (5%), and in the event CPI exceeds 5% in any given year, the Director of Finance shall substitute the state law maximum of 5% for that particular year.”
The referenced “state law maximum of 5%,” is derived from Government Code section 36516(a)(4). However, it was amended in 2024 to increase the allowed annual adjustment from 5% to 10%. As a result, the City’s 2006 Resolution reflects an outdated statement of the applicable state law cap.

Despite this, the discrepancy has no effect on the current calculation. The CPI increase between February 2024 and December 2025 is 4.97%, which does not exceed the five percent threshold. Accordingly, the 5% cap set forth in the 2006 Resolution, and the current 10% statutory limit, does not impact the compensation adjustment in the proposed Ordinance.

Procedural Issues
The City Council may raise its compensation from $704.00 per month, up to an amount not to exceed $1,337.60. Additionally, a compensation ordinance may not provide for automatic future increases. The 2006 Resolution also directs the City Manager and Director of Finance to include the possibility of Council Member and Commissioner compensation adjustments in the City budget process in even-numbered years.

Finally, Government Code section 36516.5 does not allow any change in compensation to take effect until at least one Council Member commences a new term. Thus, the effective date of an ordinance increasing City Council compensation would be deferred to December of even-numbered years. Should the City Council adopt the proposed Ordinance, the change to City Council compensation would take effect in December, 2026.

Other Considerations
Government Code section 36516 establishes maximum City Council compensation based on a city's population. Based on the California Department of Finance's January 1, 2025, population estimate of 87,369, Lake Forest Item: 13
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remains within the population category applicable to the compensation limits discussed in this report.

Proposed Ordinance
Staff has prepared the proposed Ordinance increasing the City Council’s compensation using Method 1 (i.e., current salary x 5% x specified number of years since the last increase).The proposed Ordinance applies the maximum allowable increase based on all 18 eligible years since the last adjustment. The City Council may adjust the compensation increase in the proposed Ordinance by either reducing the number of years in the formula, or by using Method 2.

Commissioner Compensation Method
Pursuant to the 2006 Resolution, the City Council may increase Commissioner compensation based on the cumulative amount of the previous two years’ CPI (Method 2 as referenced above), rounded up to the nearest whole dollar.

The City Council last set the Community Services Commission, Planning Commission, and Traffic & Parking Commission stipend at $118 per meeting and not to exceed $236 per month.

Based on the applicable CPI, Commissioner compensation may be increased by up to 4.97%. Applying the 4.97% figure to this amount, the City Council would be able to adjust Commissioner compensation to an amount not to exceed $124 per meeting and not to exceed $248 per month per Commissioner.

Procedural Issues
Pursuant to the 2006 Resolution, Commissioner compensation increases are only permissible in even-numbered election years and may become effective only in the month of December of those even-numbered election years.

Therefore, the increase in the proposed Resolution will not become effective until December 2026.

Other Considerations
State law is largely silent regarding compensation for appointed commissioners.

However, Government Code section 36506 authorizes the City Council, by resolution or ordinance, to fix the compensation of all appointive officers and employees of the City, including members of advisory commissions who serve at the pleasure of the City Council. Accordingly, pursuant to Government Code section 36506 and in accordance with the procedures established by the 2006 Resolution, the City Council has the authority to increase the compensation of members of the Lake Forest Community Services Commission, Planning Commission, and Traffic & Parking Commission.

Item: 13
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FISCAL IMPACT:

Any adjustment to City Council compensation would result in increased expenditures from the General Fund, with the exact amount varying based on the selected option and level of increase. These impacts would only materialize upon full implementation after the next municipal election.

Sufficient funds exist in the Fiscal Year 2026-2027 Operating Budget for adjustment to Commissioner Compensation. There is minimal fiscal impact associated with the recommended action.

ATTACHMENTS:

1. Attachment 1 - Ordinance entitled: AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, INCREASING

COMPENSATION FOR MEMBERS OF THE CITY COUNCIL AND

FINDING THE ACTION TO BE EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

2. Attachment 2 - Resolution entitled: A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA REGARDING

COMPENSATION RECEIVED BY LAKE FOREST COMMUNITY

SERVICE COMMISSIONERS, PLANNING COMMISSIONERS, AND

TRAFFIC AND PARKING COMMISSIONERS AND FINDING THE

ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT

3. Attachment 3 – Resolution 2006-20 City Council Member and Commission Compensation
Initiated By: Thy Merritt, City Clerk
Submitted By: Matthew Richardson, City Attorney
Approved By: Debra Rose, City Manager
Item: 13
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ATTACHMENT 1
Item: 13
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55136.00000\45082664.2
ORDINANCE NO. XXXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

LAKE FOREST, CALIFORNIA, INCREASING

COMPENSATION FOR MEMBERS OF THE CITY COUNCIL

AND FINDING THE ACTION TO BE EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Lake Forest, California (“City”) is a municipal corporation, duly organized under the California Constitution and laws of the State of California; and WHEREAS, California Government Code section 36516 provides a method by which salaries for members of the City Council are established and increased; and WHEREAS, California Government Code section 36516(a) authorizes the City Council to enact an ordinance providing that each member of the City Council shall receive a salary based on the population of the City; and WHEREAS, California Government Code section 36516(a)(4) further authorizes the salary of members of the City council to be increased beyond the amount based on the population of the City, in the greater of either an amount not exceeding five percent (5%) for each calendar year from the operative date of the last adjustment of salary or an amount equal to inflation since January 1, 2024, based upon the California Consumer Price Index (“CPI”), which shall not exceed ten percent (10%) for each calendar year; and WHEREAS, in addition to State law, the City adopted Resolution No. 2006-20, which establishes local procedures for increasing City Council compensation and provides that CPI-based increases “in no event shall exceed five percent (5%); and WHEREAS, the salary of the City Council, pursuant to Ordinance No. 198 adopted in 2008, is currently set at Seven Hundred and Four Dollars ($704.00) per month, per member of City Council; and
WHEREAS, In order to encourage qualified persons to become members of the City Council and to ensure that members of the City Council are compensated comparably to city council members of other cities, it is in the best interests of the City increase the salary of the members of the City Council; and
WHEREAS, pursuant to Government Code section 36516.5, any increase in compensation adopted by this ordinance shall not become effective until at least one member of the City Council commences a new term of office; and WHEREAS, all other legal prerequisites relating to the adoption of this Ordinance have occurred.

Item: 13
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55136.00000\45082664.2

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

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

SECTION 2. City Council Compensation. Pursuant to Section 36516 of the California Government Code, the City Council hereby authorizes an increase in compensation for the members of the City Council as determined below:

A. Each member of the City Council shall receive compensation in the amount of One Thousand Twenty Dollars and Eighty Cents ($1,337.60) per month.

The City Council finds that this amount reflects an increase of Six Hundred Thirty Three Dollars and Sixty Cents ($633.60) above the currently authorized compensation of Seven Hundred Four Dollars ($704.00) per month and is calculated pursuant to Government Code section 36516(a)(4) using the following formula:
(Current Salary)×(0.05×Number of Years Since Last Adjustment) ($704.00)×(0.05×18) = $633.60
SECTION 3. CEQA. The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) under Section 15378 because the activity is not a “project” subject to CEQA. (Cal. Code Regs. Tit. 14, § 15378.) Section 15378 defines a project as an activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (Cal. Code Regs. Tit. 14, § 15378(a).) These measures are not expected to result in any direct or reasonably foreseeable indirect physical change in the environment, and thus adoption of the ordinance is not a “project” under CEQA.

Moreover, the City Council finds that even if adopting this ordinance were considered a “project,” it is exempt from CEQA under State CEQA Guidelines section 15061(b)(3), the “common sense” exemption, because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment.(Cal. Code Regs. Tit. 14, §15061(b)(3).)
SECTION 4. Effective Date. This Ordinance takes effect 30 days after its adoption.

SECTION 5. Severability. 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 Item: 13
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55136.00000\45082664.2
one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 6. Certification. The City Clerk shall certify as to the passage, and adoption of this Ordinance and shall cause the same, or a summary thereof, to be published and/or posted in the manner required by law.

SECTION 7. Record of Proceedings. The documents and materials associated with this Ordinance that constitute the record of proceedings on which the City Council’s findings and determinations 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.

PASSED, APPROVED, AND ADOPTED this XXth day of ____, 2026.

_______________________
ROBERT PEQUEÑO
MAYOR
ATTEST:

THY MERRITT

CITY CLERK
APPROVED AS TO FORM:

MATTHEW E. RICHARDSON

CITY ATTORNEY
Item: 13
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55136.00000\45082664.2

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Thy Merritt, City Clerk of the City of Lake Forest, do hereby certify that the foregoing Ordinance No. _______ was duly introduced and placed upon its first reading at a regular meeting of the City Council on the ___ day of ________, 2026, and thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the ___ day of _____ 2026, by the following vote, to wit:

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

THY MERRITT

CITY CLERK
Item: 13
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ATTACHMENT 2
Item: 13
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55136.00000\45161374.1
RESOLUTION NO. 2026-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LAKE FOREST, CALIFORNIA REGARDING

COMPENSATION RECEIVED BY LAKE FOREST

COMMUNITY SERVICE COMMISSIONERS, PLANNING

COMMISSIONERS, AND TRAFFIC AND PARKING

COMMISSIONERS AND FINDING THE ACTION EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT
WHEREAS, the City of Lake Forest, California (“City”) is a municipal corporation, duly organized under the California Constitution and laws of the State of California; and WHEREAS, pursuant to its general police powers, the City Council established a Community Services Commission to advise the City Council on all matters subject to the jurisdiction of the Council pertaining to the acquisition, development, and maintenance of public parks and recreational facilities. The Community Services Commission was created under Lake Forest Municipal Code (“LFMC”) Chapter 2.06 and is governed by LFMC Chapter 13.01; and
WHEREAS, pursuant to its general police powers, the City Council established a Planning Commission to serve City’s planning agency responsible for planning the City’s physical development, implementing the City’s General Plan, Zoning Code, and Subdivision Code, acting as custodian of the visual character of the City, reviewing subdivision maps and development applications, and making recommendations to the City Council regarding land use and development matters. The Planning Commission was created under LFMC Chapter 2.06 and is governed by LFMC Chapter 9.02 and Government Code section 65100 et seq.; and
WHEREAS, pursuant to its general police powers, the City Council established a Traffic and Parking Commission to advise the City Council on issues relating to parking and the safe and efficient movement of traffic, including vehicles, bicycles, pedestrians, and other modes of transportation upon the circulation network of the City. The Traffic and Parking Commission was created under LFMC Chapter 2.06 and is governed by LFMC Chapter 12.06; and
WHEREAS, pursuant to California Government Code section 36506, the City Council shall, by resolution or ordinance, fix the compensation of all appointive officers and employees. “Appointive officers” includes individuals appointed to the City’s boards, commissions, and committees; and
WHEREAS, members of the Community Services Commission, Planning Commission, and Traffic and Parking Commission are compensated via stipend.

Members of these commissions are paid $118 per meeting and meet once per month pursuant to LFMC Section 13.01.006; and
Item: 13
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55136.00000\45161374.1
WHEREAS, in June 2006, the City Council adopted a Resolution 2006-20 calling for the review of City Commission compensation in even numbered election years; and WHEREAS, the City Council desires to increase the stipend received by the members of the Community Services Commission, Planning Commission, and Traffic and Parking to $124 per meeting consistent with Resolution No. 2006-19; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE FOREST, DOES HEREBY RESOLVE, DETERMINE, FIND, AND ORDER AS FOLLOWS:

SECTION 1. Recitals. The foregoing recitals are true and correct and are hereby incorporated into this Resolution as though fully set forth herein.

SECTION 2. CEQA. The City Council finds that this action is exempt from the California Environmental Quality Act (“CEQA”) under Section 15378 because the activity is not a “project” subject to CEQA. (Cal. Code Regs. Tit. 14, § 15378.) Section 15378 defines a project as an activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (Cal. Code Regs. Tit. 14, § 15378(a).) These measures are not expected to result in any direct or reasonably foreseeable indirect physical change in the environment, and thus adoption of the ordinance is not a “project” under CEQA.

Moreover, the City Council finds that even if adopting this ordinance were considered a “project,” it is exempt from CEQA under State CEQA Guidelines section 15061(b)(3), the “common sense” exemption, because it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment. (Cal. Code Regs. Tit. 14, §15061(b)(3).)
SECTION 3. Compensation.

The City Council hereby authorizes an increase in City Commissioner compensation in accordance with the procedures of Resolution 2006-19.

Said increase shall be in the amount of 4.97%, rounded-up to the nearest whole dollar, which is the cumulative CPI for the period beginning February 2024 and ending December 2025, the most recently available CPI calculation at the time this Resolution is concerned, for a total of $124 per meeting and not to exceed $248 per month per Commissioner.

Pursuant to California Government Code section 36506 and in accordance with the procedures of City Council Resolution 2006-19, the compensation of members of the Lake Forest Community Services Commission, Planning Commission, and Traffic and Parking Commission as established by LFMC Chapter 2.06 and regulated by LFMC Chapter 13.01, shall be fixed as $124 per meeting and not to exceed $248 per month per Commissioner. Compensation of members of the Lake Forest Community Services Item: 13
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55136.00000\45161374.1
Commission, Planning Commission, and Traffic and Parking Commission shall be paid via stipend.

SECTION 7. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable.

The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

SECTION 8. Effective Date. This Resolution shall become effective upon its adoption, and the City Clerk shall attest to and certify the vote adopting this Resolution.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Lake Forest, California on ____, 2026, by the following vote, to wit:
_________________________________
ROBERT PEQUEÑO
MAYOR
ATTEST:
________________________

THY MERRITT

CITY CLERK
APPROVED AS TO FORM:
_________________________
MATTHEW E. RICHARDSON

CITY ATTORNEY
Item: 13
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55136.00000\45161374.1

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. 2026- ___ was duly passed and adopted at a regular meeting of the Lake Forest City Council on the ____ day of _____ 2026, by the following vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
__________________________

THY MERRITT

CITY CLERK
Item: 13
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RESOLUTION NO. 2006- 20

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

FOREST, CALIFORNIA, DIRECTING THE CITY MANAGER AND

DIRECTOR OF FINANCE TO INCLUDE CITY COUNCIL MEMBER

AND COMMISSIONER COMPENSATION ADJUSTMENTS IN CITY

BUDGET PROCESS IN EVEN- NUMBERED YEARS
WHEREAS, State law does not allow for automatic increases in Council Member compensation, and requires that any increase not take effect for all Council Members until after one or more Council Members begin a new term of office; and WHEREAS, the City Council now desires to direct the City Manager and Director of Finance to include Council Member and City Commissioner compensation adjustments in the City budget process in even-numbered years.

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

SECTION 1. COMPENSATION INCREASE CONSIDERATION AS PART OF THE

BUDGET PROCESS
A. The City Council hereby directs the City' s City Manager and Finance Director to bring Council Member compensation and City Commissioner compensation to the City Council, during a an open public City Council meeting and as part ofthe City' s budget process in evennumbered election years, for purposes of City Council evaluation and consideration regarding whether a compensation adjustment is warranted for City Council Members and/or City Commissioners in accordance with California law.

B. In reviewing the compensation described above, the City Council will follow the procedures set forth below.

SECTION 2. COUNCIL COMPENSATION INCREASE PROCEDURES
A. The City Council wishes to set procedures for increasing its compensation in a manner which is consistent with California law and the Consumer Price Index(" CPI"), which typically falls between two percent( 2%) and four percent( 4%) in any given year, but in no event shall exceed five percent( 5%).

B. Council Member compensation increases shall only be permissible in evennumbered election years, and shall become effective only in the month of December of those even-numbered election years when the City Council determines that an increase in compensation is warranted, in accordance with California Government Code section 36516. 5.

C. Any increase in compensation for City Council Members shall be based on the cumulative amount of the previous two years' CPI, rounded up to the nearest whole dollar. The report on available increases shall be calculated by the Director of Finance, and shall be based on the most recently available CPI calculation at the time the compensation increase is being Item: 13
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considered by the City Council. For purposes of determining the two- year cumulative amount of CPI, in no event shall any year' s adjusted amount exceed five percent( 5%), and in the event CPI exceeds 5% in any given year, the Director of Finance shall substitute the state law maximum of 5% for that particular year.

D. In order to increase City Council compensation in any given even-numbered election year, the City Council must first properly adopt an ordinance authorizing the increase in accordance with California Government Code section 36516. The ordinance may be adopted by the City Council at any point during an even-numbered election year, however the increase shall not become effective until December of that particular year in accordance with section B above and California Government Code section 36516. 5. No automatic increase( s) in compensation shall be allowed.

SECTION 3. COMMISSION COMPENSATION INCREASE PROCEDURES
A. The City Council wishes to set procedures for increasing compensation for City Commissioners in a manner which is consistent with the Consumer Price Index(" CPI"), which typically falls between two percent( 2%) and four percent( 4%) in any given year, but in no event shall exceed five percent( 5%).

B. Commissioner compensation increases shall only be permissible in evennumbered election years, and shall become effective only in the month of December of those even-numbered election years and where the City Council has determined that an increase in compensation for City Commissioners is warranted.

C. Any increase in compensation for City Commissioners shall be based on the cumulative amount of the previous two years' CPI, rounded up to the nearest whole dollar. Said amount shall be calculated by the Director of Finance, and shall be based on the most recently available CPI calculation at the time the compensation increase is being considered. For purposes of determining the two-year cumulative amount of CPI, in no event shall any year' s adjusted amount exceed five percent( 5%), and in the event CPI exceeds 5% in any given year, the Director of Finance shall substitute the state law maximum of 5% for that particular year.

D. In order to increase City Commissioner compensation in any given evennumbered election year, the City Council must first properly adopt a resolution authorizing the increase. The resolution may be adopted by the City Council at any point during an evennumbered election year, however the increase shall not become effective until December of that particular year in accordance with section B above. No automatic increase( s) in compensation shall be allowed.

SECTION 4. SEVERABILITY
If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

Item: 13
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SECTION 5. EFFECTIVE DATE
This Resolution shall become effective immediately from its adoption.

SECTION 6.

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

PASSED, APPROVED AND ADOPTED by the City o cil o e City of Lake Forest at its regular meeting held on the 20th day of June, 2006. d--
eyNyy RICHARD T. DIXON
MAYOR

ATTEST' T --
2:
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Syr' eA7 • Wr.(1
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CITY CE r
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APPROVED AS TO FORM:
lk lr ` Ilk

SCOTT TI H

CITY ATTORNEY

STATE OF CALIFORNIA )

COUNTY OF ORANGE ) SS

CITY OF LAKE FOREST )
I, Sherry A.F. Wentz, City Clerk of the City of Lake Forest, California, do hereby certify that the foregoing Resolution No. 2006- 20 was adopted by the City Council at a regularly scheduled meeting duly held on the 20th day of June, 2006, by the following vote:

AYES: COUNCIL MEMBERS: HERZOG,. TETTEMER, DIXON
NOES: COUNCIL MEMBERS: MCCULLOUGH, RUDOLPH ,,-- tABSTAIN: COUNCIL MEMBERS: NONE ti ABSENT: COUNCIL MEMBERS: NONE 7,7
r f
all
S I ' ' YA. ' // % eCITY CLE' e ' T, Mi
Item: 13
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Lake Forest City CouncilJuly 7, 2026

Lake Forest City Council
July 7, 2026