Lake Forest City Council
July 21, 2026

AGENDA

LAKE FOREST CITY COUNCIL
Regular Meeting of the City Council
Tuesday, July 21, 2026
Public Session 6:30 p.m.

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

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

AGENDA DOCUMENT REVIEW:
https://www.lakeforestca.gov/city_government/agendas_and_minutes/index.php and at the City Clerk’s Office, 100 Civic Center Drive, Lake Forest, California, on the Friday before the meeting on Tuesday.

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

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

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

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

PUBLIC PARTICIPATION: In addition to attending in person, members of the public may access the meeting live on our website at https://www.lakeforestca.gov/city_government/agendas_and_minutes/index.php .

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

PUBLIC COMMENT: Members of the public may provide comments in-person at the meeting and remotely during the meeting.

Those wishing to provide comments in-person at the meeting will be asked to submit a request to speak to the City Clerk. To ensure prompt distribution to the City Council, members of the public wishing to provide written materials to the City Council should do so prior to the start of the meeting or as close thereto as possible, as time will not be taken during the public comment period to distribute written materials to the City Council. Those wishing to provide remote public comment during the meeting may do so by visiting publiccomment.lakeforestca.gov or call (949) 776-5172 and enter meeting code 4516.

TRANSLATION SERVICE: Interpreters are available by request to members of the public that prefer to make their public comments in Spanish or Chinese. Requests for a translator need to be received by 8:00 a.m. the Monday before the scheduled City Council meeting. Such requests must be received via email at [email protected]
July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 1 Los intérpretes están disponibles previa solicitud para el público que prefiera hacer sus comentarios públicos en español o chino. Las solicitudes de traductor deben recibirse antes de las 8:00 a. m. del lunes anterior a la reunión programada del Concejo Municipal. Dichas solicitudes deben recibirse por correo electrónico a [email protected]
如果大眾願意用西班牙語或中文發表公開評論，我們可應要求提供口譯服務。需要在預定市議會會議之前的周一上
午 8:00 之前收到翻譯請求。此類請求必須透過電子郵件收到：[email protected] Rúguǒ dàzhòng yuànyì yòng xībānyá yǔ huò zhōngwén fābiǎo gōngkāi pínglùn, wǒmen kě yīng yā oqiú tígōng kǒuyì fúwù. Xūyào zài yùdìng shì yìhuì huìyì zhīqián de zhōuyī shàngwǔ 8:00 Zh īqián shōu dào fānyì qǐngqiú. Cǐ lèi qǐngqiú bìxū tòuguò diànzǐ yóujiàn shōu dào: translat [email protected]
CALL TO ORDER: 6:30 p.m.

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

PUBLIC SESSION: At this time, the City Council will convene to consider public matters. Those wishing to address the City Council may submit a completed “Request to Speak” form to the City Clerk prior to City Council action. Those wishing to address the City Council remotely may visit publiccomment.lakeforestca.gov or dial (949) 776-5172 and enter meeting code 4516.

INVOCATION: The Invocation will be provided by Chaplain Jon Fosburg, Orange County Sheriff’s Department.

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country to be led by Scouting America Troop #787.

PRESENTATIONS (Item Nos. 1 – 2)

1. WILDFIRE AWARENESS AND PREVENTION SEASON PROCLAMATION July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 2 RECOMMENDED ACTION: Approve a Proclamation designating Mid- Summer-Early Autumn 2026 as “Wildfire Awareness and Prevention Season.”

2. 2026 TASTE OF LAKE FOREST PARTICIPANT, SPONSOR, AND

VOLUNTEER RECOGNITION
RECOMMENDED ACTION: Present Certificates of Recognition to 2026 Taste of Lake Forest Participants, Sponsors and Volunteers.

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

Members of the public may also provide comments in-person at the meeting. Those wishing to provide comments in-person at the meeting will be asked to submit a request to speak to the City Clerk. Those wishing to provide comment remotely may visit publiccoment.lakeforestca.gov or dial (949) 776-5172 and enter meeting code 4516.

CONSENT CALENDAR (Item Nos. 3 – 16)
All matters listed under the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request specific items be removed from the Consent Calendar for separate action.

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

4. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON JULY 7, 2026
RECOMMENDED ACTION: Approve as submitted.

July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 3

5. CERTIFICATION OF WARRANT REGISTER
RECOMMENDED ACTION: Approve the warrant register in the amount of $5,707,688.62.

6. QUARTERLY TREASURER'S REPORT - QUARTER ENDED JUNE 30, 2026
RECOMMENDED ACTION: Receive and file.

7. LAKE FOREST MUNICIPAL CODE AMENDMENTS RELATED TO GROUP

HOMES, RESIDENTIAL CARE FACILITIES, AND BOARDING HOUSES RECOMMENDED ACTION: Conduct second reading of and adopt 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).”

8. NOTICE OF COMPLETION FOR RANCHO PARKWAY & LAKE FOREST

DRIVE STREET IMPROVEMENTS, JERONIMO ROAD & LAKE FOREST

DRIVE IMPROVEMENTS , AND LOS ALISOS BOULEVARD &

ROCKFIELD BOULEVARD INTERSECTION IMPROVEMENTS
RECOMMENDED ACTION: 1. Find that All American Asphalt has completed construction of Rancho Parkway & Lake Forest Drive Street Improvements (24T05), Jeronimo Road & Lake Forest Drive Improvements (24T06), and Los Alisos Boulevard & Rockfield Boulevard Intersection Improvements (24T07). 2. ​Approve the Notice of Completion and authorize the Mayor to execute the document on behalf of the City. 3. Authorize the City Clerk to submit Notice of Completion for recordation to the Office of the County Recorder of Orange County within fifteen days of the City Council approval, as required by Section 9204 of the California Civil Code. 4.

Authorize staff to release any unencumbered retention in accordance with California law.​
July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 4

9. AWARD OF PROFESSIONAL CONSULTANT SERVICES AGREEMENT

TO JACOB GREEN AND ASSOCIATES FOR EMERGENCY

MANAGEMENT TRAINING AND EXERCISE PROGRAM
RECOMMENDED ACTION: 1. Award an Agreement with a compensation amount of $114,500 to Jacob Green & Associates for development and implementation of a comprehensive Emergency Management Training and Exercise Program. 2. Authorize the Mayor to sign, and the City Clerk to attest, the Professional Consultant Services Agreement with Jacob Green & Associates, substantially in the form attached.

10. THIRD AMENDMENT TO THE AGREEMENT WITH MCCI, LLC,
FORMERLY ECS IMAGING, INC., FOR ELECTRONIC DOCUMENT

MANAGEMENT SOFTWARE AND SERVICES
RECOMMENDED ACTION: 1. Approve a Third Amendment to the Agreement with MCCi, LLC, formerly ECS Imaging, Inc. for electronic document management software and services for a one-year term extension with an increase in compensation of $38,777.90, bringing the total not-to-exceed amount to $226,597.90. 2. Authorize the Mayor to sign, and the City Clerk to attest, the Third Amendment to the Agreement with MCCi, LLC substantially in the form attached.

11. AWARD OF CONTRACT FOR AFFORDABLE HOUSING CONSULTANT

SERVICES
RECOMMENDED ACTION: 1. Award a Professional Consultant Services Agreement for Affordable Housing Consultant Services in the amount of $213,615 to RSG, Inc. 2. Authorize the Mayor to sign, and the City Clerk to attest, the award of contract to RSG, Inc. substantially in the form attached.

12. RESPONSE TO THE ORANGE COUNTY GRAND JURY REGARDING
"WILDFIRES HIT HOME"
July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 5 RECOMMENDED ACTION: Approve and authorize the City Manager to submit the City’s response to the Orange County Grand Jury report "Wildfires Hit Home."

13. RESPONSE TO ORANGE COUNTY GRAND JURY REGARDING

CALIFORNIA HOUSING MANDATES REPORT
RECOMMENDED ACTION: Approve and authorize the City Manager to submit the City's response to the Orange County Grand Jury Report regarding California Housing Mandates.

14. CONSIDERATION OF FOURTH AMENDMENT TO 2022-2025

AGREEMENT WITH AMERINAT FOR HOUSING REHABILITATION LOAN

AND PAINT GRANT PROGRAM PORTFOLIO MANAGEMENT SERVICES

AND PROFESSIONAL CONSULTANT SERVICES AGREEMENT WITH

AMERICAN DEPOSIT MANAGEMENT, LLC, FOR LOAN DOCUMENT

PREPARATION SERVICES
RECOMMENDED ACTION: 1. Approve the proposed Fourth Amendment to the Agreement with AmeriNat, for loan portfolio management services to the City of Lake Forest and Lake Forest Housing Authority. 2. Authorize the Mayor to sign, and the City Clerk to attest the Fourth Amendment to the Agreement with AmeriNat, substantially in the form attached. 3. Approve the proposed Professional Services Agreement with American Deposit Management, LLC, for loan document preparation services to the City of Lake Forest and Lake Forest Housing Authority. 4. Authorize the Mayor to sign, and the City Clerk to attest the Professional Consultant Services Agreement with American Deposit Management, LLC, substantially in the form attached.

15. AWARD CONSTRUCTION CONTRACT FOR SLURRY SEAL PROJECT FOR RESIDENTIAL STREETS, ZONE D (26S01A) AND CIVIC CENTER PARKING LOT (26F01)
RECOMMENDED ACTION: 1. Approve contract documents for
construction of Slurry Seal Project for Residential Streets, Zone D (26S01A) and Civic Center Parking Lot (26F01). 2. Award a Construction Contract in the amount of $2,046,878 to Pavement Coatings Co. 3. Reject July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 6 all other bids received and authorize return of the bid bonds upon receipt of the executed contract documents from Pavement Coatings Co. 4.

Authorize the Mayor to sign, and the City Clerk to attest, the contract with Pavement Coatings Co.

16. APPROVAL OF PARCEL MAP NO. 2025-121
RECOMMENDED ACTION: Adopt a Resolution entitled: A RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, APPROVING FINAL PARCEL MAP NO. 2025-121, FOR CONDOMINIUM

PURPOSES AND SUBDIVIDING ONE EXISTING INDUSTRIAL OFFICE COMPLEX PARCEL INTO 4 NEW PARCELS AND ALLOWING UP TO 80

INDUSTRIAL OFFICE CONDOMINIUM UNITS, IN THE PACIFIC
COMMERCENTRE PLANNED COMMUNITY-BUSINESS PARK AT 21098
BAKE PARKWAY, ASSESSOR’S PARCEL NUMBER 610-311-13
PUBLIC HEARING(S) (Item No. 17)
Public Hearings are scheduled for a time certain of 6:30 p.m. or as soon thereafter as possible. City Council, when considering the matter scheduled for hearing, will take the following actions: 1. Open the Public Hearing. 2. Receive staff report. 3. Accept public testimony. 4. City Council comments and questions. 5. Close the Public Hearing and take appropriate action.

17. SECOND EXTENSION OF URGENCY ORDINANCE FOR MORATORIUM ON MASSAGE ESTABLISHMENTS.

RECOMMENDED ACTION: Adopt an Urgency Ordinance entitled: AN

EXTENSION OF AN URGENCY ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF LAKE FOREST, CALIFORNIA, EXTENDING
ORDINANCE NO. 379 ADOPTED BY THE CITY COUNCIL OF THE CITY OF LAKE FOREST ON AUGUST 19, 2025, AND SUBSEQUENTLY
EXTENDED BY ORDINANCE NO. 381 TO AUGUST 18, 2026,
PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858

TEMPORARILY PROHIBITING THE ESTABLISHMENT OF BUSINESSES

OFFERING MASSAGES PENDING STUDY AND ADOPTION OF

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

July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 7 The following matters are for City Council consideration/discussion/action. Members of the public may have the opportunity to address these items if they wish to do so. Please complete the Request to Speak form and give to the City Clerk, visit publiccomment.lakeforestca.gov, or dial (949) 776-5172 and enter meeting code 4516.

18. LAKE FOREST MUNICIPAL CODE AMENDMENT REGARDING

ELECTRIC BICYCLES
RECOMMENDED ACTION: Introduce for first reading an Ordinance entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST, CALIFORNIA, AMENDING CHAPTER 12.24 OF TITLE 12

OF THE LAKE FOREST MUNICIPAL CODE, RELATING TO THE

PROHIBITION OF OPERATION OF ELECTRIC BICYCLES ON

DECLARED PORTIONS OF PUBLIC PROPERTY, AND FINDING THE

ORDINANCE NOT SUBJECT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT”

19. DECLARATION OF THE WHISPERING HILLS SITE AS SURPLUS LAND

AND AUTHORIZATION FOR STAFF TO ISSUE A NOTICE OF

AVAILABILITY PURSUANT TO THE CALIFORNIA SURPLUS LAND ACT RECOMMENDED ACTION: 1. Adopt a Resolution entitled: “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST

MAKING FINDINGS AND DECLARING, PURSUANT TO GOVERNMENT
CODE SECTION 54221, THAT CERTAIN REAL PROPERTY LOCATED

ALONG LAKE FOREST DR, BETWEEN VINTAGE WOODS ROAD AND
DIMENSION DRIVE, IDENTIFIED WITH ASSESSOR’S PARCEL NUMBER 613-621-18, IS SURPLUS LAND, APPROVING THE NOTICE OF

AVAILABILITY THEREFOR, AUTHORIZING THE CITY MANAGER TO

COMPLY WITH THE SURPLUS LAND ACT AND TAKING RELATED

ACTIONS, FINDING THAT SUCH DECLARATION IS EXEMPT FROM

ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTIONS 15060(C) (3) AND 15312 OF THE STATE CEQA GUIDELINES AND DIRECTING STAFF TO ISSUE A NOTICE OF EXEMPTION” 2. Authorize staff to issue a Notice of Availability (“NOA”) to the California Department of Housing and Community Development (“HCD”) and all entities required under the Surplus Land Act (Government Code §54220 et seq.). 3. Find, pursuant to the California Environmental Quality Act (“CEQA"), that declaring the property as surplus land, approving the form of the Notice of Availability, and authorizing the City Manager to comply with the Surplus Land Act, will July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 8 DISCUSSION/ACTION ITEMS (Item Nos. 18 – 20)
not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to CEQA pursuant to CEQA Guidelines Section 15060(c)(3). Alternatively, find that the action is exempt from CEQA pursuant to CEQA Guidelines Section 15312 (Surplus Government Property), because the property is not located in an area of statewide, regional, or area-wide concern. Direct staff to file a Notice of Exemption.

20. STRATEGIC PLAN QUARTERLY UPDATE
RECOMMENDED ACTION: Receive and file.

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

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

Council Member Tettemer:

Council Member Voigts:

Council Member Yu:

Mayor Pro Tem Cirbo:

Mayor Pequeño:

July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 9

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

Notification 48 hours prior to the Meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and agenda back-up materials can be obtained from the Office of the City Clerk on the Friday prior to the City Council meeting. Copies of all Agendas, Staff Reports and Supporting Materials can also be found on the City’s website – https://www.lakeforestca.gov/city_government/agendas_and_minutes/index.php. Agenda and agenda packets, if requested, will be made available in an appropriate alternative format to persons with a disability as required by the Americans With Disabilities Act. Copies of the agenda are provided at no cost and agenda back-up materials are available at the per page copy cost.

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

Phone: (949) 461-3400. FAX (949) 461-3511
CERTIFICATION: I, Thy Merritt, City Clerk of the City of Lake Forest, California, hereby certify that the foregoing agenda was posted for public review at City Hall on July 16, 2026.

Thy Merritt
City Clerk
July 21, 2026 LAKE FOREST CITY COUNCIL AGENDA Page 10

CITY COUNCIL AGENDA REPORT
MEETING DATE: 07/21/2026
DEPARTMENT: City Clerk
SUBJECT:

WILDFIRE AWARENESS AND PREVENTION SEASON PROCLAMATION
RECOMMENDED ACTION(S):

Approve a Proclamation designating Mid-Summer-Early Autumn 2026 as “Wildfire Awareness and Prevention Season.”
EXECUTIVE SUMMARY:

Annually, the Orange County Fire Authority (“OCFA”) designates mid-summer through early-autumn as “Wildfire Awareness and Prevention Season.” Persistent drought, warmer temperatures, and more severe winds have compounded threatening and devastating wildfire realities in California. OCFA’s goal is to help prevent wildfires and mitigate the threat they pose to Orange County by working collaboratively with communities to raise awareness through public education, emergency planning tools, and pre-emptive wildfire prevention strategies. Throughout this “Wildfire Awareness and Prevention Season,” the OCFA will be widely sharing such information and empowering its communities to play an integral role in preventing wildfires. Formal adoption of this Proclamation recognizes ”Wildfire Awareness and Prevention Season,” demonstrates support of OCFA’s efforts, and encourages individuals to raise awareness and take steps toward protecting homes and businesses.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

Proclamation Supporting Wildfire Awareness and Prevention Season Initiated By: Madeline Balsz, Assistant City Clerk
Submitted By: Thy Merritt, City Clerk
Approved By: Debra Rose, City Manager
Item: 1
11 5
6 7
1 8

ATTACHMENT
Item: 1
12 5
6 7
1 8

THE CITY COUNCIL OF THE CITY OF LAKE FOREST
PROCLAIMS MID-SUMMER – EARLY AUTUMN 2026 AS WILDFIRE

AWARENESS AND PREVENTION SEASON
WHEREAS, in 2020, California experienced a record-breaking wildfire season, with 4 million acres burned across the state. In 2024, the state faced 8,024 wildfires that burned approximately 1,050,012 acres, reflecting a significant increase from the previous year; and WHEREAS, the recent wildfires in Los Angeles County, including the Eaton and Palisades fires in early January 2025, resulted in at least 29 fatalities and destroyed over 16,000 structures.

The economic impact of these fires is profound, with tragic death tolls and estimated damages and economic losses reaching up to $250 billion; and
WHEREAS, extreme fires are a growing threat to public health and safety, to homes, air quality, and climate goals. Approximately 25 percent of California’s population lives in areas identified as high or very high fire hazard severity zones. Sudden and intense wildfires may swiftly emerge, traversing vast distances and penetrating urban zones urban zones far from their origin, thereby detrimentally affecting public health and diminishing overall quality of life; and WHEREAS, every citizen has a key role in preventing destructive wildfires from occurring.

Public education and up-to-date regional emergency planning are key to making our communities more resilient to the impacts of wildfire and other extreme weather events. Orange County residents can learn about Ready, Set, Go! to prepare for wildfire season and help prevent loss of life and property at www.OCFA.org/RSG; and
NOW, THEREFORE BE IT RESOLVED, the City Council of the City of Lake Forest, California does hereby proclaim the height of wildfire season beginning in mid-summer and running through early autumn as “Wildfire Awareness and Prevention Season” and encourages everyone to do their part to raise public awareness, take steps to protect our homes and businesses, and to prevent sparking a wildfire. One less spark means one less wildfire. ________________________
ROBERT PEQUEÑO
Mayor
__________________________

DOUGH CIRBO
Mayor Pro Tem
__________________________

MARK TETTEMER
Council Member
__________________________

SCOTT VOIGTS
Council Member
__________________________

BENJAMIN YU
Council Member
Item: 1
13 CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/21/2026
DEPARTMENT: Economic Development
SUBJECT:
2026 TASTE OF LAKE FOREST PARTICIPANT, SPONSOR, AND

VOLUNTEER RECOGNITION
RECOMMENDED ACTION(S):

1. Present Certificates of Recognition to 2026 Taste of Lake Forest Participants, Sponsors and Volunteers.

EXECUTIVE SUMMARY:

The Taste of Lake Forest is hosted in collaboration with the Lake Forest Chamber of Commerce (“Chamber”). The event provides a platform for local restaurants to showcase their culinary offerings, fosters community engagement, and celebrates the diverse flavors of Lake Forest's dining scene. The 2026 event, cohosted by the Chamber and sponsored by Orange County (“OC”) Supervisor Donald P. Wagner, OC Parks, and CR&R, took place on Saturday, June 13, at Heritage Hill Historical Park, from 4:00 to 8:00 p.m.

The event welcomed hundreds of attendees, in addition to many staff and volunteers. Tickets were available exclusively to individuals aged 21 and up and were priced at $50 per person, available on the event’s webpage and at the door.

Attendees were able to enjoy a range of experiences, including samples from 21 local restaurants, numerous beer and wine gardens, and live music from The Trip.

The event also included opportunity drawings, a silent auction, and an awards ceremony in which all restaurants were invited to take pictures on the stage.

Attendees were encouraged to vote for their favorite “taste” throughout the event.

At the awards ceremony, Lupe’s Mexican Eatery won the “Best Taste of Lake Forest”, A Little Something Sweet won the 2nd place trophy, and La Casita Olvera won 3rd place. In addition, Mitasie Vegan Cafe received the award for “Best New Entry.” The event’s return was met with positive comments from both attendees and participating restaurants.

Item: 2
14 FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

Sample Certificates of Recognition
Initiated By: Ian McKeever, Management Assistant
Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager
Item: 2
15 ATTACHMENT
Item: 2
16 Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Lake Forest Business
For placing First at the
2026 Taste of Lake Forest
July 21, 2026
____________________________
Robert Pequeño
MAYOR
____________________________ ____________________________

DOUG CIRBO MARK TETTEMER Mayor Pro Tem Council Member ____________________________ ____________________________

SCOTT VOIGTS BENJAMIN YU Council Member Council Member Item: 2
17 Certificate of Recognition

THE LAKE FOREST CITY COUNCIL

RECOGNIZES
Lake Forest Business
For participating in the
2026 Taste of Lake Forest
July 21, 2026
____________________________
Robert Pequeño
MAYOR
____________________________ ____________________________

DOUG CIRBO MARK TETTEMER Mayor Pro Tem Council Member ____________________________ ____________________________

SCOTT VOIGTS BENJAMIN YU Council Member Council Member Item: 2
18 CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/21/2026
DEPARTMENT: City Clerk
SUBJECT:

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

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

EXECUTIVE SUMMARY:

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

FISCAL IMPACT:

There is minimal fiscal impact associated with the recommended action.

ATTACHMENTS:

None.

Submitted By: Thy Merritt, City Clerk
Approved By: Debra Rose, City Manager
14 Item: 3
19 MINUTES OF A REGULAR MEETING

OF THE CITY COUNCIL OF THE CITY OF LAKE FOREST

The regular meeting of the City Council of the City of Lake Forest held Tuesday, July 7, 2026, at the Lake Forest City Council Chambers, 100 Civic Center Drive, Lake Forest, California, was called to order at 6:00 p.m. with all members present.

ROLL CALL:

Council Members:

Mark Tettemer
Scott Voigts
Benjamin Yu
Mayor Pro Tem: Doug Cirbo
Mayor: Robert Pequeño

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

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(D)(1)
NUMBER OF CASES:1
CASE NAME: BRIAN MCMILLAN V. CITY OF LAKE FOREST, ET AL.

USDC CENTRAL DISTRICT CASE NO.: 8:25-CV-00245-SRM (JDEX) ACTION: Closed session was conducted.

2. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code section 54956.9(d)(1)
Number of potential cases:1
ACTION: Closed session was conducted.

PUBLIC SESSION: 6:30 p.m.

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

PLEDGE OF ALLEGIANCE: The Pledge of Allegiance to the Flag of our Country was led by Brownie Troop #2519.

CLOSED SESSION REPORT: City Attorney Richardson had no action to report.

CLOSED SESSION PUBLIC COMMENTS: There were no public comments on closed Item: 4
20 July 7, 2026

LAKE FOREST CITY COUNCIL MEETING MINUTES Page 2 of 8
session items.

PRESENTATIONS: (Item Nos. 3 – 4)
MOTION: It was moved by Council Member Voigts, seconded by Council Member Yu, to approve Presentation Item Nos. 3 - 4. The motion was carried by a vote of 5-0.

3. PROCLAMATION COMMEMORATING THE 250TH ANNIVERSARY OF THE

SIGNING OF THE DECLARATION OF INDEPENDENCE
City Clerk Merritt introduced the American Heritage Ensemble who played several songs.

ACTION: A Proclamation commemorating the 250th Anniversary of the signing of the Declaration of Independence was approved.

4. RECOGNITION OF VOLUNTEERS IN PARKS PROGRAM PARTICIPANTS City Manager Rose introduced this item and invited Management Assistant Samantha to provide a presentation.

ACTION: The volunteers who performed quarterly park inspections for the Volunteer in Parks ("VIP") Program for Fiscal Year 2025-2026 were recognized.

PUBLIC COMMENTS:

Anthony Ford expressed his concerns with automated license plate readers operated by private companies.

Mark Hermanson shared his support for the council and encouraged detractors to run for office.

Tracy Beam requested to have cameras installed on Orange Avenue between Muirlands Boulevard and Whisler Drive due to ongoing graffiti.

Bob Holtzclaw praised the City’s 4th of July Parade and the Lake Forest II Sun & Sail Club’s Fireworks Show.

Eileen McGervey praised City Manager Rose’s hard work and commitment to the City and expressed concerns with recent house fires near Serrano Creek Park.

Randy Johnson expressed concerns with illegal fireworks.

CONSENT CALENDAR: (Item Nos. 5 – 8)
Council Member Yu stepped away from the dais.

MOTION: It was moved by Council Member Voigts, seconded by Mayor Pro Tem Cirbo, to approve Consent Calendar Item Nos. 5 – 8. The motion was carried by a vote of 4-0, Item: 4
21 July 7, 2026

LAKE FOREST CITY COUNCIL MEETING MINUTES Page 3 of 8
with Council Member Yu absent.

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

6. MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL HELD ON JUNE 16, 2026
ACTION: The minutes were approved as submitted.

7. CONDUIT OCCUPANCY AGREEMENT WITH CITYSIDE NETWORKS, LLC

FOR FIBER OPTIC INSFRASTRUCTURE IMPROVEMENTS
ACTION: The Conduit Occupancy Agreement with Cityside Networks, LLC was approved.

8. THIRD AMENDMENT TO THE AGREEMENT WITH SOFTCHOICE, INC. FOR MICROSOFT OFFICE 365 SOFTWARE LICENSES
ACTION: 1. The Third Amendment to the Agreement with Softchoice, Inc., for Microsoft Office software licenses was approved. 2. The Mayor was authorized to sign, and the City Clerk to attest, the third amendment with Softchoice, Inc., substantially in the form attached.

PUBLIC HEARING(S): (Item Nos. 9 – 10)

9. APPEAL OF THE PLANNING COMMISSION’S APPROVAL OF SITE DEVELOPMENT PERMIT 06-21-5437 AND CERTIFICATION OF
ENVIRONMENTAL IMPACT REPORT (SCH #2024030755) FOR DEMOLITION OF AN EXISTING BUILDING AND CONSTRUCTION OF A NEW 165,803 SQUARE FOOT INDUSTRIAL BUILDING LOCATED AT 26200 ENTERPRISE WAY
Mayor Pequeño opened the public hearing. Mayor Pequeño provided an explanation of the appeal procedure. City Attorney Richardson provided information on the public hearing and due process including whether or not the Council had any ex parte communications with the applicant or appellate/ Council Member Tettemer confirmed he had not had any ex parte communications. Council Member Voigts shared he met with a group of residents at Starbucks in Foothill Ranch. Mayor Pequeño confirmed he had not had any ex parte communications. Mayor Pro Tem Cirbo shared he had spoken with the applicant, Chris Sanford. Council Member Yu returned to the dais and shared he had met with the applicant more than a year ago and had spoken with Item: 4
22 July 7, 2026

LAKE FOREST CITY COUNCIL MEETING MINUTES Page 4 of 8
the applicant’s consultant multiple times. Council Member Yu also shared he had spoken to residents at the Meadows. City Manager Rose introduced Senior Planner Mansur and Special Counsel Alisha Winterswyk who provided presentations. The applicant Chris Sanford with IPT Enterprise Business Center, LLC addressed the Council. Clarifying questions were asked and answered. The appellant Harrison Jiang with We the Meadows addressed the Council.

The following provided public comment in opposition of approving Staff’s recommendation:

Sunny Wu
Vickie Zhu
Anna Peng
Weitian Zhou
Yanbo Zhao
Bin Zhou
Diana Lees
Feng Yi Yang
Yuna Li
Jimhu
Bonnie Zhang
Mark Zhong
Jenny Wei
Kelly V.

Darren Chard
Kevin Xie
Linda Gu
Willan
Shelly Wang
May Cai
William Wang
Jennifer
Mindy Li
Du Shu Hua
Aaron Cai
Jeffrey Yu
Connie
Mark Hermanson
Jay Cost
Andrea Alexander
Kathy Lv
Shunhua Zhan
Jiayue Cai
Liting Li
Jane Chen
Sharon Wang Hu
Item: 4
23 July 7, 2026

LAKE FOREST CITY COUNCIL MEETING MINUTES Page 5 of 8
Jim Wang
Ashley H
Jackie Chen
The following provided public comment in favor of approving staff’s recommendation:

Amy Smith
Henry Hillebrecht
Chris Stankus
Matt Dunphy
Peter Schafer
Cesar Lamas
Ricardo Licerio
At 9:32 p.m. City Manager Rose reminded Council of City Council Policy:

CC.07.10 City Council Meeting Management, Consideration of Adjournment, which states, at 9:30 p.m. the City Council shall determine by motion and vote whether the meeting should continue or conclude with any remaining items be continued to the next regular meeting agenda. Mayor Pequeño made a motion, seconded by Council Member Voigts to continue the council meeting. The motion was passed by a vote of 5-0. City Council deliberation continued and questions were asked and answered. Mayor Pequeño closed the public hearing.

MOTION: It was moved by Council Member Voigts, seconded by Mayor Pro Tem Cirbo, to: 1. Resolution entitled: A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF LAKE FOREST ADOPTING ENVIRONMENTAL FINDINGS

PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT,

ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS,

CERTIFYING THE IPT ENTERPRISE BUSINESS CENTER LLC PROJECT FINAL ENVIRONMENTAL IMPACT REPORT (SCH #2024030755), ADOPTING

THE MITIGATION MONITORING AND REPORTING PROGRAM, APPROVING SITE DEVELOPMENT PERMIT 06-21-5437, AND APPROVING THE PROJECT was adopted; and 2. A Resolution entitled: A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF LAKE FOREST, APPROVING SITE
DEVELOPMENT PERMIT 06-21-5437 FOR THE DEMOLITION OF AN

EXISTING BUILDING AND THE CONSTRUCTION OF A NEW INDUSTRIAL BUILDING LOCATED AT 26200 ENTERPRISE WAY was adopted. The motion was carried by a vote of 4-1, with Council Member Yu voting No.

10. LAKE FOREST MUNICIPAL CODE AMENDMENTS RELATED TO GROUP

HOMES, RESIDENTIAL CARE FACILITIES, AND BOARDING HOUSES Mayor Pequeño opened the public hearing. City Manager Rose introduced this item and invited Assistant Director of Community Development Stonich to provide a presentation. Council Member Voigts left the dais. Council questions Item: 4
24 July 7, 2026

LAKE FOREST CITY COUNCIL MEETING MINUTES Page 6 of 8
were asked and answered. No public comment was offered. Mayor Pequeño closed the public hearing. Council Member Voigts returned to the dais.

MOTION: It was moved by Mayor Pequeño, seconded by Council Member Yu to:

Conduct the 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).” The motion was carried by a vote of 5-0.

DISCUSSION/ACTION ITEMS: (Item Nos. 11 – 13)

11. AWARD OF CONTRACT FOR PROFESSIONAL DESIGN SERVICES FOR CAVANAUGH PARK IMPROVEMENTS (25P08)
City Manager Rose introduced this item and invited Public Works Director Erdman to provide a presentation. No public comment was offered. Council questions were asked and answered. Council Member Tettemer made a motion to add a Notice to Proceed prior to starting Phase 2 of the design along with staff’s recommendation.

MOTION: It was moved by Council Member Tettemer, seconded by Mayor Pequeño to: 1. Award the 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. The motion was carried by a vote of 5-0.

12. DISCUSSION REGARDING CITY COUNCIL TERM LIMITS
City Manager Rose introduced this item and invited City Attorney Richardson to provide a presentation. Mark Hermanson offered public comment and shared he was in favor of staff’s recommendation. Jim Segner offered public comment and expressed his opposition to approving staff’s recommendation. Janet Segner offered public comment and shared her opposition to approving staff’s recommendation. Eileen McGervey offered public comment in opposition of approving staff’s recommendation. Jay Cost offered public comment and shared his opposition to staff’s recommendation. Noma Bates offered public comment and shared she appreciated Council’s service to the community but was in opposition of staff’s recommendation. Randy Johnson offered public comment in opposition of approving staff’s recommendation. Julia Mangione offered public comment and shared she is in opposition of staff’s recommendation. Council discussion ensued and questions were asked and answered.

Item: 4
25 July 7, 2026

LAKE FOREST CITY COUNCIL MEETING MINUTES Page 7 of 8
MOTION: It was moved by Council Member Tettemer, seconded by Council Member Yu, to: 1. Discuss revising the City of Lake Forest’s Term Limit Ordinance, and 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; and 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. The motion was carried by a vote of 5-0.

13. CITY COUNCIL AND CITY COMMISSIONER COMPENSATION
City Manager Rose introduced this item and invited City Attorney Richardson to provide a presentation. Randy Johnson offered public comment and shared he is in opposition of increasing compensation. City Council deliberated and questions were asked and answered. Mayor Pequeño made a motion to increase the compensation to $1020.00. There was no second to Mayor Pequeño’s motion.

Council Member Yu made a substitute motion to make no changes to the compensation and keep the status quo; it was seconded by Council Member Tettemer.

MOTION: It was moved by Council Member Yu, seconded by Council Member Tettemer, to keep the Council and Commissioner compensation as is. The motion was carried by a vote of 5-0.

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

CITY COUNCIL COMMENTS:

Council Member Tettemer: Council Member Tettemer had nothing further to report.

Council Member Voigts: Council Member Voigts had nothing further to report.

Council Member Yu: Council Member Yu had nothing further to report.

Item: 4
26 July 7, 2026

LAKE FOREST CITY COUNCIL MEETING MINUTES Page 8 of 8
Mayor Pro Tem Cirbo: Mayor Pro Tem Cirbo reported on his attendance at the City’s Fourth of July Parade.

Mayor Pequeño: Mayor Pequeno reported on his attendance at the City’s Multicultural Festival, Four-Chamber Mixer in San
Clemente, the Summer Concert in the Park featuring
Redneck Rodeo and the Fourth of July Parade.

ADJOURNMENT: The Regular Meeting of the City Council was adjourned at 11:03 p.m.

Respectfully submitted:

APPROVED:

THY MERRITT ROBERT PEQUEÑO

CITY CLERK MAYOR
Item: 4
27 CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/21/2026
DEPARTMENT: Finance
SUBJECT:

CERTIFICATION OF WARRANT REGISTER
RECOMMENDED ACTION(S):

Approve the warrant register in the amount of $5,707,688.62.

EXECUTIVE SUMMARY:

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

FISCAL IMPACT:

The amount of the warrant register is $5,707,688.62.

ATTACHMENTS:

Warrant Register
Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager
Item: 5
28 Attachment

Item: 5
29 Item: 5
30 Item: 5
31 Item: 5
32 Item: 5
33 Item: 5
34 Item: 5
35 Item: 5
36 Item: 5
37 Item: 5
38 Item: 5
39 Item: 5
40 Item: 5
41 Item: 5
42 Item: 5
43 Item: 5
44 Item: 5
45 Item: 5
46 Item: 5
47 Item: 5
48 Item: 5
49 Item: 5
50 CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/21/2026
DEPARTMENT: Finance
SUBJECT:

QUARTERLY TREASURER'S REPORT - QUARTER ENDED JUNE 30, 2026 RECOMMENDED ACTION(S):

Receive and file.

EXECUTIVE SUMMARY:

The attached Treasurer's Report presents the status of the City of Lake Forest’s (“City”) investment portfolio for the quarter ending June 30, 2026. Total cash and investments are at $228.4 million for the period, with no exceptions to the City’s Statement of Investment Policy (“Investment Policy”). Quarterly reports are presented to the City Council to ensure transparency of the City’s investment holdings and demonstrate compliance with the Investment Policy.

The City contracts with Chandler Asset Management to provide investment management services. The City’s portfolio balances consist of the following:

Investment Portfolio:

Type
March 31,
2026
(in millions)
June 30,
2026
(in millions)
Chandler Asset Management Portfolio $160.0 $160.6
Local Agency Investment Fund (“LAIF”) 45.3 60.8
California Asset Management Program
(“CAMP”)

15.1 5.0
Operating Bank Balance – US Bank 1.0 2.0
Total $221.4 $228.4
The attached Quarterly report confirms the City’s full compliance with the Investment Policy.

Item: 6
51 FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ATTACHMENTS:

Quarterly Treasurer’s Report
Submitted By: Kevin Shirah, Director of Finance/City Treasurer Approved By: Debra Rose, City Manager
Item: 6
52 Attachment

Item: 6
53 INVESTMENT REPORT
Lake Forest | As of June 30, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

Item: 6
54 TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
1 Item: 6
55 ECONOMIC UPDATE
2 Item: 6
56 ▪
▪
▪
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the8–4 split at April’s meeting, which marked JeromePowell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
3 Item: 6
57 -400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4 Item: 6
58 0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offsetby declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5 Item: 6
59 Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around $72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
6 Item: 6
60 0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY %
Change
PCE Core Deflator YOY %
Change
Fed Target
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
Inflation firmed in May, with the Personal Consumption Expenditures (PCE) price index rising 0.4% on the month and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE, which excludes food and energy, increased 0.3% in May and 3.4% over the year. Energy prices remained the primary driverof the headline acceleration, reflecting supply disruptions tied to the Iranian conflict. A similar pattern was evident in the headline Consumer Price Index (CPI), which rose 0.5% on the month and 4.2% year over year, the fastest annual pace since 2023. Energy prices climbed 3.9% in May and 23.5% from a year earlier, largely due to crude oil reaching a four-year high. In contrast, core CPI rose a more modest 0.2% on the month and 2.9% year over year, indicating that inflation pressures remain concentrated in energy rather than broad-based.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
7 Item: 6
61 0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%
Retail Sales YOY % Change
YOY (%) Change
Retail sales rose a robust 0.9% in May to $763.7 billion, nearly double the pace economists had penciled in and an acceleration from April's downwardly revised 0.4% gain. The closely watched control group, which feeds directly into gross domestic product calculations, advanced

0.7%, pointing to durable underlying demand. Gasoline station receipts roseas energy prices stayed high, while auto sales rebounded after an April pullback. The Conference Board's Consumer Confidence Index tickedup 0.6 points to 91.2 in June, though the improvement masked a further deterioration in how households view the job market, with the share calling jobs ‘hard-to-get’ climbing to a five year high.

Spending has proven more resilient than sentiment across recent months. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
8 Item: 6
62 -25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continuedto weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
9 Item: 6
63 0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts declined sharply in May to a seasonally adjusted annual rate of 1,177,000, a 15.4% drop from a downwardly revised 1,392,000 in April. The pullback was driven primarily by multifamily construction, while single-family starts edged down a more modest

1.9% to 882,000; total multifamily starts came in at 295,000 units. The S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first pickup since November 2025, following an upwardly revised 0.9% gain in March. Freddie Mac’s average 30- year fixed mortgage rate increased to 6.44% in May from 6.33% in April, reinforcing ongoing affordability constraints for prospective buyers.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
10 Item: 6
64 40
45 50
55 60
65 70
Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services Index eased to 54.0% from 54.5%, a twenty-fourth consecutive monthin expansion territory. Business activity and new orders both slowed, though the employment component jumpedto 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
11 Item: 6
65 Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%
-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment)
-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis’ third estimate, up from 1.6%in the prior estimate andan acceleration from 0.5% in the fourth quarterof 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)
12 Item: 6
66 Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the Aprilmeeting—Jerome Powell’slast as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summaryof Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4%in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
13 Item: 6
67 Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowedto 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relativeto the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
14 Item: 6
68 ACCOUNT PROFILE
15 Item: 6
69 OBJECTIVES
Investment Objectives
The investment objectives for the City of Lake Forest, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and earn a market rate of return consistent with the investment program.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 16 Item: 6
70 STATEMENT OF COMPLIANCE
Lake Forest Cons | Account #11085 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES
Max % (MV) 100.0 8.0 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 30.0 8.0 Compliant Max Maturity (Years) 5.0 2.9 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 6.2 Compliant
Max % Issuer (MV) 5.0 1.1 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

COLLATERALIZED BANK DEPOSITS
Max % (MV) 100.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 25.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 18.9 Compliant
Max % Issuer (MV) 5.0 1.1 Compliant
Max Maturity (Years) 5 4 Compliant
17 Item: 6
71 STATEMENT OF COMPLIANCE
Lake Forest Cons | Account #11085 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes
Min Rating (A- by 1) 0.0 0.0 Compliant

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 1.5 Compliant
Max % Issuer (MV; Agencies & Agency CMOs) 30.0 8.0 Compliant Max Callables (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 1 Compliant

JOINT POWERS AUTHORITY (JPA)
Max % (MV) 100.0 2.2 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Concentration (MV) 75.0 60.8 Compliant

LOCAL GOVERNMENT INVESTMENT POOL (LGIP)
Max % (MV) 100.0 2.2 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.4 Compliant
Max % Issuer (MV) 20.0 0.4 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 0.7 Compliant
Max % Issuer (MV) 5.0 0.7 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
18 Item: 6
72 STATEMENT OF COMPLIANCE
Lake Forest Cons | Account #11085 | As of June 30, 2026 Rules Name Limit Actual Compliance
Status Notes

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUTUAL FUNDS
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

PLACEMENT SERVICE DEPOSITS
Max % (MV) 30.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 1.2 Compliant
Max % Issuer (MV) 10.0 0.7 Compliant
Max Maturity (Years) 5 3 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 33.8 Compliant
Max Maturity (Years) 5 4 Compliant
19 Item: 6
73 PORTFOLIO CHARACTERISTICS
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.64 2.94 2.92
Average Modified Duration 2.46 2.52 2.53
Average Purchase Yield 4.33% 4.37%
Average Market Yield 4.16% 4.30% 4.03%
Average Quality** AA+ AA+ AA+
Total Market Value 160,596,631 160,004,968
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 20 Item: 6
74 SECTOR DISTRIBUTION
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 47.83% 45.19%
Corporate 26.58% 26.22%
Agency CMBS 11.34% 11.47%
ABS 8.77% 7.50%
Agency 2.18% 4.42%
Supras 1.74% 3.53%
Muni Bonds 0.97% 0.99%
Money Mkt Fd 0.57% 0.68%
21 Item: 6
75 ISSUERS
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Issuer Investment Type % Portfolio
United States US Treasury 47.83%
Federal Home Loan Mortgage Corp Agency CMBS 11.34%
Farm Credit System Agency 2.18%
Caterpillar Inc. Corporate 1.52%
American Express Credit Master Trust ABS 1.52%
Guardian Life Global Funding Corporate 1.47%
Deere & Company Corporate 1.44%
Massachusetts Mutual Life Insurance Corporate 1.30%
Toyota Motor Corporation Corporate 1.27%
Mercedes-Benz Auto Lease Trust ABS 1.17%
Simon Property Group, Inc. Corporate 0.99%
State of California Muni Bonds 0.97%
The Home Depot, Inc. Corporate 0.97%
BMW Vehicle Lease Trust ABS 0.96%
Walmart Inc. Corporate 0.94%
International Bank for Recon and Dev Supras 0.93%
Abbvie Inc. Corporate 0.90%
Mastercard Incorporated Corporate 0.85%
PepsiCo, Inc. Corporate 0.84%
International Finance Corporation Supras 0.81%
American Honda Finance Corporation Corporate 0.79%
Prudential Financial, Inc. Corporate 0.78%
New York Life Insurance Company Corporate 0.76%
U.S. Bancorp Corporate 0.76%
PNC Financial Services Corporate 0.76%
Merck & Co., Inc. Corporate 0.75%
Metropolitan Life Global Funding I Corporate 0.75%
Mercedes-Benz Auto Receivables Trust ABS 0.72%
Visa Inc. Corporate 0.64%
Hyundai Auto Receivables Trust ABS 0.63%
22 Item: 6
76 ISSUERS
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Issuer Investment Type % Portfolio
Wells Fargo & Company Corporate 0.63%
Nat Rural Util Coop Fin Corp Corporate 0.63%
Morgan Stanley Corporate 0.63%
Prologis, Inc. Corporate 0.63%
Wells Fargo & Company ABS 0.63%
Bank of America Corporation Corporate 0.63%
JPMorgan Chase & Co. Corporate 0.63%
Florida Power & Light Corporate 0.63%
Public Service Enterprise Group Corporate 0.62%
Federated Hermes, Inc. Money Mkt Fd 0.57%
Hyundai Motor Company ABS 0.57%
Honda Auto Receivables Owner Trust ABS 0.55%
Meta Platforms, Inc. Corporate 0.52%
Chubb Limited Corporate 0.50%
Cisco Systems, Inc. Corporate 0.49%
GM Financial Auto Leasing Trust ABS 0.48%
Duke Energy Corporation Corporate 0.46%
Chase Issuance Trust ABS 0.43%
Met Tower Global Funding Corporate 0.41%
BMW Vehicle Owner Trust ABS 0.39%
Hyundai Auto Lease Sec Trust ABS 0.39%
Eli Lilly and Company Corporate 0.34%
The Goldman Sachs Group, Inc. Corporate 0.33%
GM Financial Securitized Term ABS 0.15%
Toyota Auto Receivables Owner Trust ABS 0.10%
John Deere Owner Trust ABS 0.08%
Cash Cash 0.00%
TOTAL 100.00%
23 Item: 6
77 QUALITY DISTRIBUTION
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 11.58% 12.91%
AA 66.99% 69.19%
A 16.18% 14.73%
BBB 1.45% 1.44%
A-1+ 1.40% --
NA 2.41% 1.73%
Rating 06/30/2026 03/31/2026
Aaa 4.50% 5.90%
Aa 71.48% 72.13%
A 16.07% 16.20%
P-1 1.40% --
NA 6.55% 5.77%
Rating 06/30/2026 03/31/2026
AAA 18.65% 18.68%
AA 58.27% 61.05%
A 9.98% 7.68%
F1+ 1.40% --
NA 11.70% 12.59%
24 Item: 6
78 INVESTMENT PERFORMANCE
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Total Rate of Return: Inception | 08/01/2023
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception Lake Forest Operating Reserve 0.39% 3.14% 4.78% 4.80%
Benchmark 0.24% 2.71% 4.37% 4.33%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 25 Item: 6
79 PORTFOLIO CHARACTERISTICS
Lake Forest Reporting | Account #11084 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.82% 3.82%
Average Market Yield 3.82% 3.82%
Average Quality** AAA AAA
Total Market Value 66,473,124 60,601,056
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 26 Item: 6
80 SECTOR DISTRIBUTION
Lake Forest Reporting | Account #11084 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
LAIF 91.52% 74.72%
LGIP 7.59% 24.89%
Cash 0.89% 0.40%
27 Item: 6
81 CONSOLIDATED INFORMATION
28 Item: 6
82 PORTFOLIO CHARACTERISTICS
Lake Forest Cons | Account #11085 | As of June 30, 2026 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.08 2.11
Average Modified Duration 1.78 1.83
Average Purchase Yield 4.18% 4.21%
Average Market Yield 4.16% 3.97%
Average Quality** AA+ AA+
Total Market Value 227,069,755 220,606,024
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29 Item: 6
83 SECTOR DISTRIBUTION
Lake Forest Cons | Account #11085 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 33.76% 32.70%
LAIF 26.93% 20.65%
Corporate 18.76% 18.97%
Agency CMBS 8.01% 8.30%
ABS 6.19% 5.42%
LGIP 2.23% 6.88%
Agency 1.54% 3.20%
Supras 1.23% 2.56%
Muni Bonds 0.69% 0.72%
Money Mkt Fd 0.40% 0.49%
Cash 0.26% 0.11%
30 Item: 6
84 PORTFOLIO HOLDINGS
31 Item: 6
85 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
44934FAD7 HALST 2024-B A3 5.41 05/17/2027 126,892.83 05/14/2024

5.41%
126,889.31
126,891.80
100.11

3.96%
127,037.24
305.11

0.08%
145.44
NA/AAA
AAA

0.88 0.08
36269WAD1 GMALT 2024-2 A3 5.39
07/20/2027 65,272.75 05/07/2024

5.85%
65,268.95
65,271.49
100.09

3.93%
65,328.82
107.50

0.04%

57.32 NA/AAA
AAA

1.05 0.06
89239HAD0 TAOT 2022-D A3 5.3 09/15/2027 158,885.07 06/12/2023

5.09%
159,753.98
158,960.48
100.18

3.96%
159,177.74
374.26

0.10%
217.26
Aaa/NA
AAA

1.21 0.13
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 258,418.82 05/17/2024

5.73%
258,388.58
258,406.00
100.35

4.20%
259,328.71
611.02

0.16%
922.71
Aaa/NA
AAA

1.55 0.30
362583AD8 GMCAR 2023-2 A3 4.47
02/16/2028 152,907.74 07/12/2023

5.11%
150,817.21
152,166.46
100.07

4.12%
153,019.06
284.79

0.10%
852.60
Aaa/AAA
NA

1.63 0.18
05592XAD2 BMWOT 2023-A A3 5.47
02/25/2028 218,075.04 --

5.26%
219,055.53
218,250.98
100.33

4.10%
218,791.20
198.81

0.14%
540.22
NA/AAA
AAA

1.66 0.23
477920AC6 JDOT 2023-B A3 5.18 03/15/2028 125,963.12 06/21/2023

5.51%
125,942.11
125,955.53
100.36

4.19%
126,412.31
290.00

0.08%
456.78
Aaa/NA
AAA

1.71 0.34
362962AD4 GMALT 2025-2 A3 4.58
05/22/2028 705,000.00 05/20/2025

4.84%
704,988.30
704,992.58
100.23

4.29%
706,601.06
986.61

0.44%
1,608.48
NA/AAA
AAA

1.90 0.68
36267KAD9 GMCAR 2023-3 A3 5.45
06/16/2028 91,422.09 07/11/2023

5.51%
91,418.56
91,420.68
100.41

4.26%
91,794.18
207.60

0.06%
373.50
Aaa/AAA
NA

1.96 0.33
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 680,000.00 09/07/2023

5.23%
679,811.50
679,916.74
100.25

3.96%
681,712.92
1,559.47

0.43%
1,796.18
NA/AAA
AAA

2.21 0.20
05594HAD5 BMWLT 2025-2 A3 3.97
09/25/2028 810,000.00 10/08/2025

4.32%
809,997.73
809,998.28

99.67 4.34%
807,365.88
535.95

0.51%
(2,632.40)
NA/AAA
AAA

2.24 0.97
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 310,320.85 05/14/2024

5.27%
310,283.14
310,300.83
100.54

4.37%
312,003.72
590.56

0.20%
1,702.89
NA/AAA
AAA

2.39 0.56
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 406,660.74 06/04/2024

5.18%
406,598.97
406,625.89
100.51

4.33%
408,719.25
351.08

0.26%
2,093.37
Aaa/AAA
NA

2.66 0.56
43813YAC6 HAROT 2024-3 A3 4.57
03/21/2029 570,764.85 08/09/2024

4.66%
570,675.18
570,711.57
100.20

4.31%
571,896.10
724.55

0.36%
1,184.53
Aaa/NA
AAA

2.72 0.64
02582JKH2 AMXCA 2024-1 A 5.23 04/16/2029 1,155,000.00 04/16/2024

5.30%
1,154,763.23
1,154,867.23
100.82

4.20%
1,164,503.34
2,684.73

0.73%
9,636.11
NA/AAA
AAA

2.79 0.76
58770XAD5 MBALT 2025-B A3 3.88
04/16/2029 1,610,000.00 10/16/2025

4.57%
1,609,735.80
1,609,788.14

99.38 4.35%
1,599,977.75
2,776.36

1.00%
(9,810.39)
NA/AAA
AAA

2.79 1.41
32 Item: 6
86 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
448972AD1 HALST 26B A3 4.21 04/16/2029 495,000.00 04/16/2026

4.22%
494,927.83
494,932.46

99.61 4.47%
493,074.95
926.20

0.31%
(1,857.52)
NA/AAA
AAA

2.79 1.74
05594YAD8 BMWLT 2026-1 A3 4.15
05/25/2029 720,000.00 04/14/2026

4.85%
719,920.44
719,925.37

99.56 4.46%
716,814.00
498.00

0.45%
(3,111.37)
Aaa/NA
AAA

2.90 1.65
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 1,260,000.00 05/06/2025

4.28%
1,259,977.19
1,259,982.44

99.90 4.38%
1,258,729.92
2,396.80

0.79%
(1,252.52)
NA/AAA
AAA

3.79 1.69
58769MAD2 MBART 261 A3 4.36 10/15/2030 1,150,000.00 05/12/2026

4.60%
1,149,749.53
1,149,756.07

99.81 4.49%
1,147,839.15
2,228.44

0.72%
(1,916.92)
NA/AAA
AAA

4.29 2.07
448981AD2 HART 2026-A A3 3.79 02/18/2031 1,025,000.00 02/10/2026

4.30%
1,024,930.81
1,024,935.85

98.67 4.48%
1,011,385.95
1,726.56

0.63%
(13,549.90)
NA/AAA
AAA

4.64 2.01
44935KAD5 HART 26B A3 4.81 02/18/2031 900,000.00 06/09/2026

4.86%
899,891.37
899,892.26
100.24

4.44%
902,163.60
1,683.50

0.57%
2,271.34
NA/AAA
AAA

4.64 2.20
92970QAK1 WFCIT 2026-1 A 4.08 04/16/2029 1,015,000.00 04/21/2026

4.12%
1,014,857.70
1,014,866.03

99.25 4.41%
1,007,346.90
1,840.53

0.63%
(7,519.13)
Aaa/NA
AAA

2.79 2.58
14,008,642.95 99.86 13,991,023.74 8.77% 3.03
Total ABS 14,010,583.91 4.72% 14,008,815.15 4.34% 23,888.43 (17,791.41) 1.34 AGENCY
3133EPNH4 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 06/21/2028 3,500,000.00 06/21/2023

4.06%
3,470,831.00
3,488,476.25

99.44 4.17%
3,480,375.50
3,767.36

2.18%
(8,100.75)
Aa1/AA+
AA+

1.98 1.88
3,470,831.00 99.44 3,480,375.50 2.18% 1.98
Total Agency 3,500,000.00 4.06% 3,488,476.25 4.17% 3,767.36 (8,100.75) 1.88

AGENCY CMBS
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 2,459,310.73 06/06/2023

4.45%
2,376,116.86
2,447,550.02

99.47 4.18%
2,446,382.13
7,029.53

1.53%
(1,167.89)
Aa1/AA+
AAA

0.57 0.41
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 2,252,590.21 06/30/2023

4.62%
2,130,985.53
2,218,383.89

98.59 4.25%
2,220,864.73
5,982.50

1.39%
2,480.84
Aa1/AAA
AA+

1.24 1.16
3137FCLD4 FHMS K-071 A2 3.286 11/25/2027 1,300,000.00 06/07/2023

4.42%
1,240,281.25
1,281,861.25

98.50 4.30%
1,280,558.50
3,559.83

0.80%
(1,302.75)
Aa1/AA+
AAA

1.41 1.30
3137FETN0 FHMS K-073 A2 3.35 01/25/2028 2,500,000.00 06/06/2023

4.35%
2,403,027.34
2,468,057.53

98.48 4.31%
2,461,982.50
6,979.17

1.54%
(6,075.03)
Aa1/AA+
AAA

1.57 1.39
33 Item: 6
87 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137F4D41 FHMS K-074 A2 3.6 01/25/2028 2,469,427.55 07/25/2023

5.78%
2,356,856.37
2,431,231.27

98.76 4.32%
2,438,853.57
7,408.28

1.53%
7,622.29
Aa1/AA+
AAA

1.57 1.45
3137FGR31 FHMS K-078 A2 3.854 06/25/2028 2,500,000.00 06/22/2023

4.42%
2,443,261.72
2,477,915.22

98.91 4.37%
2,472,660.00
8,029.17

1.55%
(5,255.22)
Aa1/AA+
AAA

1.99 1.75
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 1,500,000.00 04/11/2024

4.94%
1,332,714.84
1,411,059.89

94.87 4.43%
1,423,003.50
2,825.00

0.89%
11,943.61
Aa1/AA+
AAA

2.57 2.36
3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 1,500,000.00 03/18/2024

4.70%
1,416,093.75
1,455,356.97

97.42 4.43%
1,461,268.50
4,277.50

0.92%
5,911.53
Aa1/AAA
AA+

2.66 2.43
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 1,957,816.94 09/19/2024

3.82%
1,888,834.48
1,915,318.82

96.24 4.43%
1,884,181.49
4,865.18

1.18%
(31,137.33)
Aa1/AA+
AAA

2.90 2.54
17,588,172.15 98.12 18,089,754.91 11.34% 1.75
Total Agency CMBS 18,439,145.42 4.62% 18,106,734.86 4.32% 50,956.16 (16,979.95) 1.56 CASH
CCYUSD Receivable 4,671.34 -- 4,671.34
4,671.34

1.00 4,671.34

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
4,671.34 1.00 4,671.34 0.00% 0.00
Total Cash 4,671.34 4,671.34 0.00 0.00 0.00

CORPORATE
89236TKJ3 TOYOTA MOTOR CREDIT CORP

4.55 09/20/2027 1,000,000.00 06/05/2023

4.63%
996,860.00
999,105.72
100.30

4.29%
1,003,020.00
12,765.28

0.63%
3,914.28
A1/A+
A+

1.22 1.16
24422EXZ7 JOHN DEERE CAPITAL CORP 4.65
01/07/2028 1,270,000.00 01/06/2025

4.66%
1,269,619.00
1,269,806.54
100.55

4.27%
1,277,038.34
28,543.25

0.80%
7,231.80
A1/A
A+

1.52 1.42
931142FB4 WALMART INC 3.9 04/15/2028 1,500,000.00 06/13/2023

4.39%
1,468,365.00
1,488,284.66

99.53 4.17%
1,492,948.50
12,350.00

0.94%
4,663.84
Aa2/AA
AA

1.79 1.70
74456QBU9 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.7 05/01/2028 1,000,000.00 06/05/2023

4.63%
959,700.00
984,915.64

98.80 4.39%
987,957.00
6,166.67

0.62%
3,041.36
A1/A
NA

1.84 1.74
341081GN1 FLORIDA POWER & LIGHT CO 4.4
05/15/2028 1,000,000.00 06/05/2023

4.62%
990,280.00
996,314.59
100.06

4.36%
1,000,636.00
5,622.22

0.63%
4,321.41
Aa2/A+
AA-

1.88 1.62
74340XCG4 PROLOGIS LP 4.875 06/15/2028 1,000,000.00 07/25/2023

5.06%
992,020.00
996,803.53
100.87

4.41%
1,008,661.00
2,166.67

0.63%
11,857.47
A2/A
NA

1.96 1.77
34 Item: 6
88 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
24422EXB0 JOHN DEERE CAPITAL CORP 4.95
07/14/2028 1,000,000.00 07/11/2023

4.96%
999,758.30
999,901.57
101.24

4.31%
1,012,394.00
22,962.50

0.63%
12,492.43
A1/A
A+

2.04 1.88
06051GKW8 BANK OF AMERICA CORP 4.948
07/22/2028 1,000,000.00 07/19/2023

5.82%
982,540.00
995,380.70
100.41

5.09%
1,004,124.00
21,853.67

0.63%
8,743.30
A1/A-
AA-

2.06 1.00
46647PDG8 JPMORGAN CHASE & CO 4.851
07/25/2028 1,000,000.00 07/20/2023

5.71%
983,510.00
995,609.44
100.29

5.07%
1,002,904.00
21,021.00

0.63%
7,294.56
A1/A
AA-

2.07 1.01
26442CAX2 DUKE ENERGY CAROLINAS LLC

3.95 11/15/2028 750,000.00 11/27/2023

5.12%
711,870.00
731,744.71

98.85 4.46%
741,410.25
3,785.42

0.46%
9,665.54
Aa3/A
NA

2.38 2.23
57629W5B2 MASSMUTUAL GLOBAL FUNDING
II 4.85 01/17/2029 900,000.00 01/09/2024

4.85%
899,883.00
899,940.38
100.63

4.59%
905,630.40
19,885.00

0.57%
5,690.02
Aa3/AA+
AA+

2.55 2.32
17275RBR2 CISCO SYSTEMS INC 4.85
02/26/2029 780,000.00 02/21/2024

4.86%
779,727.00
779,854.91
101.06

4.42%
788,282.82
13,135.42

0.49%
8,427.91
A1/AA-
NA

2.66 2.36
14913UAJ9 CATERPILLAR FINANCIAL SERVICES
CORP 4.85 02/27/2029 1,000,000.00 03/18/2024

4.84%
1,000,490.00
1,000,263.87
101.21

4.36%
1,012,140.00
16,705.56

0.63%
11,876.13
A1/A
A+

2.66 2.43
58989V2H6 MET TOWER GLOBAL FUNDING

5.25 04/12/2029 650,000.00 04/08/2024

5.30%
648,674.00
649,262.20
101.65

4.61%
660,710.70
7,488.54

0.41%
11,448.50
Aa3/AA-
AA-

2.78 2.54
89236TMF9 TOYOTA MOTOR CREDIT CORP

5.05 05/16/2029 1,000,000.00 05/21/2024

5.00%
1,002,080.00
1,001,200.66
101.46

4.50%
1,014,554.00
6,312.50

0.64%
13,353.34
A1/A+
A+

2.88 2.64
38151LAJ9 GOLDMAN SACHS BANK USA

4.656 06/03/2029 520,000.00 05/27/2026

4.57%
520,000.00
520,000.00
100.06

4.54%
520,321.88
1,883.09

0.33%
321.88
A1/A+
AA-

2.93 1.81
437076DC3 HOME DEPOT INC 4.75
06/25/2029 1,525,000.00 06/17/2024

4.88%
1,516,310.00
1,519,812.65
100.99

4.39%
1,540,092.93
1,207.29

0.97%
20,280.27
A2/A
A

2.99 2.68
713448FX1 PEPSICO INC 4.5 07/17/2029 1,335,000.00 07/15/2024

4.53%
1,332,930.75
1,333,739.87
100.31

4.39%
1,339,130.49
27,367.50

0.84%
5,390.62
A1/A+
NA

3.05 2.69
30303M8S4 META PLATFORMS INC 4.3
08/15/2029 836,000.00 08/12/2024

4.33%
834,702.24
835,189.08

99.78 4.38%
834,144.08
13,580.36

0.52%
(1,045.00)
Aa3/AA-
NA

3.13 2.85
171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 793,000.00 08/12/2024

4.52%
797,480.60
795,770.73
100.49

4.48%
796,904.73
13,930.37

0.50%
1,134.00
A2/A
A

3.13 2.76
40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING

4.179 09/26/2029 1,075,000.00 09/23/2024

4.18%
1,075,000.00
1,075,000.00

98.69 4.62%
1,060,927.18
11,855.01

0.67%
(14,072.83)
Aa1/AA+
NA

3.24 2.96
00287YBX6 ABBVIE INC 3.2 11/21/2029 1,500,000.00 09/24/2025

4.04%
1,452,360.00
1,461,115.97

95.75 4.57%
1,436,311.50
5,333.33

0.90%
(24,804.47)
A2/A-
NA

3.39 3.15
64952WFK4 NEW YORK LIFE GLOBAL FUNDING

4.6 12/05/2029 1,215,000.00 12/02/2024

4.61%
1,214,307.45
1,214,524.77

99.95 4.62%
1,214,359.70
4,036.50

0.76%
(165.08)
Aa1/AA+
AAA

3.43 3.13
35 Item: 6
89 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
14913UAX8 CATERPILLAR FINANCIAL SERVICES
CORP 4.8 01/08/2030 1,400,000.00 01/06/2025

4.84%
1,397,298.00
1,398,095.58
101.35

4.38%
1,418,921.00
32,293.33

0.89%
20,825.42
A1/A
A+

3.53 3.14
59217GFT1 METROPOLITAN LIFE GLOBAL
FUNDING I 4.9 01/09/2030 1,195,000.00 01/02/2025

4.95%
1,192,538.30
1,193,263.60
100.57

4.72%
1,201,853.33
27,976.28

0.75%
8,589.73
Aa3/AA-
AA-

3.53 3.13
57629TBV8 MASSMUTUAL GLOBAL FUNDING
II 4.95 01/10/2030 1,160,000.00 01/03/2025

4.96%
1,159,443.20
1,159,606.95
100.70

4.73%
1,168,125.80
27,274.50

0.73%
8,518.85
Aa3/AA+
AA+

3.53 3.13
61747YFK6 MORGAN STANLEY 5.173
01/16/2030 1,000,000.00 02/12/2025

5.18%
999,540.00
999,701.47
100.90

4.87%
1,009,013.00
23,709.58

0.63%
9,311.53
A1/A-
A+

3.55 2.30
95000U3J0 WELLS FARGO & CO 5.198
01/23/2030 1,000,000.00 02/12/2025

5.15%
1,001,630.00
1,001,060.63
101.12

4.84%
1,011,240.00
22,813.44

0.63%
10,179.37
A1/BBB+
A+

3.57 2.32
63743HFX5

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
1,000,000.00 02/05/2025

4.88%
1,002,873.61
1,002,058.75
101.05

4.63%
1,010,538.00
19,800.00

0.63%
8,479.25
A2/NA
A

3.61 3.14
02665WFY2 AMERICAN HONDA FINANCE
CORP 4.8 03/05/2030 1,270,000.00 03/03/2025

4.82%
1,268,882.40
1,269,178.02

99.81 4.86%
1,267,557.79
19,642.67

0.79%
(1,620.23)
A3/BBB+
A-

3.68 3.28
74153WCW7 PRICOA GLOBAL FUNDING I 4.7
05/28/2030 1,250,000.00 05/21/2025

4.74%
1,247,962.50
1,248,407.72

99.86 4.74%
1,248,240.00
5,385.42

0.78%
(167.72)
Aa3/AA-
AA-

3.91 3.52
828807DK0 SIMON PROPERTY GROUP LP 2.65
07/15/2030 1,700,000.00 08/19/2025

4.32%
1,575,373.00
1,597,304.57

92.73 4.64%
1,576,454.20
20,773.06

0.99%
(20,850.37)
A3/A
NA

4.04 3.71
40139LBN2 GUARDIAN LIFE GLOBAL FUNDING

4.327 10/06/2030 1,300,000.00 09/30/2025

4.33%
1,300,000.00
1,300,000.00

98.37 4.75%
1,278,756.70
13,281.49

0.80%
(21,243.30)
Aa1/AA+
NA

4.27 3.81
92826CAZ5 VISA INC 4.1 02/12/2031 1,035,000.00 02/03/2026

4.13%
1,033,613.10
1,033,718.67

98.91 4.36%
1,023,725.75
16,384.63

0.64%
(9,992.93)
Aa3/AA-
NA

4.62 4.09
693475CD5 PNC FINANCIAL SERVICES GROUP
INC 4.899 05/13/2031 1,200,000.00 05/15/2026

4.83%
1,203,084.00
1,202,990.80
100.54

4.79%
1,206,492.00
7,838.40

0.76%
3,501.20
A3/A-
A

4.87 3.47
91159HJV3 US BANCORP 5.083 05/15/2031 1,200,000.00 05/15/2026

4.82%
1,211,460.00
1,211,114.16
101.11

4.80%
1,213,364.40
7,793.93

0.76%
2,250.24
A3/A
A+

4.87 3.46
532457DL9 ELI LILLY AND CO 4.375
05/20/2031 545,000.00 05/06/2026

4.40%
544,416.85
544,430.26

99.23 4.55%
540,805.14
2,715.54

0.34%
(3,625.13)
Aa3/AA-
NA

4.89 4.33
58933YCK9 MERCK & CO INC 4.65 05/22/2031 1,200,000.00 --

4.68%
1,198,351.35
1,198,387.47
100.16

4.61%
1,201,962.00
6,045.00

0.75%
3,574.54
Aa3/A+
NA

4.89 4.31
57636QBL7 MASTERCARD INC 4.6 06/08/2031 1,360,000.00 06/04/2026

4.62%
1,358,912.00
1,358,925.70

99.85 4.63%
1,357,909.68
3,996.89

0.85%
(1,016.02)
Aa3/A+
NA

4.94 4.36
36 Item: 6
90 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Corporate 42,464,000.00 4.74%
42,123,845.65
42,261,786.53

99.86 4.57%
42,389,562.26
537,681.28

26.58%
127,775.73

3.22 2.75

MONEY MARKET
FUND
60934N807 FEDERATED HRMS GV O SVC 914,728.75 --

3.30%
914,728.75
914,728.75

1.00 3.30%
914,728.75

0.00 0.57%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 914,728.75 3.30%
914,728.75
914,728.75

1.00 3.30%
914,728.75

0.00 0.57%

0.00 0.00

0.00 MUNICIPAL BONDS
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 1,545,000.00 10/30/2024

4.38%
1,553,142.15
1,550,304.16
100.46

4.34%
1,552,094.64
28,968.75

0.97%
1,790.48
Aa2/AA-
AA

3.09 2.80
Total Municipal
Bonds 1,545,000.00 4.38%
1,553,142.15
1,550,304.16
100.46

4.34%
1,552,094.64
28,968.75

0.97%
1,790.48

3.09 2.80

SUPRANATIONAL
45950KDD9 INTERNATIONAL FINANCE CORP

4.5 07/13/2028 1,280,000.00 07/06/2023

4.53%
1,278,579.20
1,279,422.19
100.63

4.17%
1,288,051.20
26,880.00

0.81%
8,629.01
Aaa/AAA
NA

2.04 1.89
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
1,500,000.00 12/12/2024

4.25%
1,475,580.00
1,483,383.90

99.00 4.20%
1,485,049.50
12,105.00

0.93%
1,665.60
Aaa/AAA
NA

3.30 3.03
Total Supranational 2,780,000.00 4.38%
2,754,159.20
2,762,806.10

99.76 4.19%
2,773,100.70
38,985.00

1.74%
10,294.60

2.71 2.50

US TREASURY
912797UP0 UNITED STATES TREASURY
07/14/2026 2,250,000.00 06/24/2026

3.60%
2,245,790.02
2,247,119.49

99.87 3.63%
2,247,093.00

0.00 1.41%
(26.49)
P-1/A-1+
F1+

0.04 0.04
91282CFU0 UNITED STATES TREASURY 4.125
10/31/2027 3,500,000.00 06/29/2023

4.23%
3,485,234.38
3,495,460.32

99.94 4.17%
3,497,949.00
24,324.05

2.19%
2,488.68
Aa1/AA+
AA+

1.34 1.27
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 3,000,000.00 --

3.83%
3,003,007.82
3,001,744.03

99.58 4.17%
2,987,343.00
315.90

1.87%
(14,401.03)
Aa1/AA+
AA+

1.50 1.44
37 Item: 6
91 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 3,500,000.00 06/05/2023

3.81%
3,470,878.91
3,488,805.73

99.02 4.16%
3,465,546.00
10,746.24

2.17%
(23,259.73)
Aa1/AA+
AA+

1.92 1.82
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 3,500,000.00 06/28/2023

4.00%
3,500,273.44
3,500,109.20

99.69 4.16%
3,489,199.00
380.43

2.19%
(10,910.20)
Aa1/AA+
AA+

2.00 1.90
91282CJF9 UNITED STATES TREASURY 4.875
10/31/2028 3,500,000.00 10/27/2023

4.79%
3,513,261.72
3,506,191.71
101.54

4.17%
3,553,868.50
28,746.60

2.23%
47,676.79
Aa1/AA+
AA+

2.34 2.17
91282CJN2 UNITED STATES TREASURY 4.375
11/30/2028 3,750,000.00 12/08/2023

4.26%
3,769,775.39
3,759,615.46
100.46

4.17%
3,767,283.75
13,896.00

2.36%
7,668.29
Aa1/AA+
AA+

2.42 2.26
91282CPP0 UNITED STATES TREASURY 3.5
12/15/2028 2,000,000.00 12/10/2025

3.64%
1,992,187.50
1,993,598.88

98.45 4.17%
1,969,062.00
3,060.11

1.23%
(24,536.88)
Aa1/AA+
AA+

2.46 2.32
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 3,000,000.00 01/04/2024

3.97%
2,970,820.31
2,985,362.11

99.01 4.17%
2,970,234.00
305.71

1.86%
(15,128.11)
Aa1/AA+
AA+

2.50 2.36
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 1,500,000.00 02/16/2024

4.31%
1,479,375.00
1,489,207.85

99.57 4.18%
1,493,554.50
25,027.62

0.94%
4,346.65
Aa1/AA+
AA+

2.59 2.39
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 2,000,000.00 04/10/2024

4.57%
1,960,546.87
1,978,175.79

99.88 4.17%
1,997,656.00
20,737.70

1.25%
19,480.21
Aa1/AA+
AA+

2.75 2.55
91282CKT7 UNITED STATES TREASURY 4.5
05/31/2029 2,800,000.00 --

4.27%
2,828,750.00
2,816,982.29
100.91

4.17%
2,825,376.40
10,672.13

1.77%
8,394.11
Aa1/AA+
AA+

2.92 2.70
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 1,500,000.00 07/18/2024

4.09%
1,510,605.47
1,506,426.67
100.23

4.17%
1,503,399.00
173.23

0.94%
(3,027.67)
Aa1/AA+
AA+

3.00 2.79
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 3,000,000.00 09/11/2024

3.45%
3,023,554.69
3,015,031.87

98.40 4.17%
2,951,952.00
36,348.51

1.85%
(63,079.87)
Aa1/AA+
AA+

3.17 2.92
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 3,500,000.00 --

4.03%
3,417,890.63
3,445,715.42

97.97 4.17%
3,428,908.00
30,792.35

2.15%
(16,807.42)
Aa1/AA+
AA+

3.25 3.01
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 1,500,000.00 12/16/2024

4.25%
1,491,386.72
1,494,057.84

99.84 4.17%
1,497,657.00
5,240.78

0.94%
3,599.16
Aa1/AA+
AA+

3.42 3.14
91282CGQ8 UNITED STATES TREASURY 4.0
02/28/2030 1,500,000.00 04/10/2025

4.00%
1,500,000.00
1,500,000.00

99.39 4.18%
1,490,917.50
20,054.35

0.93%
(9,082.50)
Aa1/AA+
AA+

3.67 3.33
91282CGS4 UNITED STATES TREASURY 3.625
03/31/2030 2,000,000.00 04/04/2025

3.62%
2,000,078.13
2,000,058.80

98.06 4.19%
1,961,250.00
18,224.04

1.23%
(38,808.80)
Aa1/AA+
AA+

3.75 3.43
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 2,500,000.00 --

4.06%
2,479,990.23
2,484,436.53

98.92 4.18%
2,472,950.00
16,321.33

1.55%
(11,486.53)
Aa1/AA+
AA+

3.83 3.50
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 3,000,000.00 --

4.02%
2,996,992.19
2,997,633.08

99.32 4.19%
2,979,726.00
10,163.93

1.87%
(17,907.08)
Aa1/AA+
AA+

3.92 3.58
38 Item: 6
92 HOLDINGS REPORT
Lake Forest Operating Reserve | Account #11083 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 3,500,000.00 --

3.92%
3,492,968.75
3,494,523.06

98.84 4.19%
3,459,533.00
368.55

2.17%
(34,990.06)
Aa1/AA+
AA+

4.00 3.66
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 4,000,000.00 --

3.69%
3,988,105.47
3,990,004.64

97.83 4.20%
3,913,280.00
48,464.67

2.45%
(76,724.64)
Aa1/AA+
AA+

4.17 3.77
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 3,250,000.00 12/08/2025

3.75%
3,213,183.59
3,217,317.08

97.20 4.20%
3,158,847.25
9,634.56

1.98%
(58,469.83)
Aa1/AA+
AA+

4.42 4.03
91282CPR6 UNITED STATES TREASURY 3.625
12/31/2030 3,250,000.00 --

3.92%
3,208,525.39
3,211,321.12

97.64 4.21%
3,173,446.25
320.14

1.99%
(37,874.87)
Aa1/AA+
AA+

4.50 4.10
91282CPW5 UNITED STATES TREASURY 3.75
01/31/2031 3,000,000.00 02/25/2026

3.60%
3,019,453.13
3,018,102.22

98.11 4.21%
2,943,399.00
46,926.80

1.85%
(74,703.22)
Aa1/AA+
AA+

4.59 4.10
91282CQD6 UNITED STATES TREASURY 3.5
02/28/2031 3,200,000.00 03/05/2026

3.72%
3,167,875.00
3,169,940.18

97.07 4.20%
3,106,124.80
37,434.78

1.95%
(63,815.38)
Aa1/AA+
AA+

4.67 4.20
91282CQG9 UNITED STATES TREASURY 3.875
03/31/2031 1,500,000.00 04/17/2026

3.84%
1,502,402.34
1,502,306.57

98.58 4.21%
1,478,671.50
14,610.66

0.93%
(23,635.07)
Aa1/AA+
AA+

4.75 4.25
91282CQU8 UNITED STATES TREASURY 4.125
05/31/2031 2,500,000.00 06/16/2026

4.17%
2,494,824.22
2,494,864.28

99.63 4.21%
2,490,820.00
8,734.63

1.56%
(4,044.28)
Aa1/AA+
AA+

4.92 4.39
Total US Treasury 77,000,000.00 3.98%
76,727,737.31
76,804,112.18

99.07 4.17%
76,275,046.45
442,025.82

47.83%
(529,065.73)

3.15 2.89
Total Portfolio 160,658,129.42 4.33%
159,145,930.50
159,902,435.31

98.71 4.30%
159,470,358.29
1,126,272.81
100.00%
(432,077.02)

2.94 2.52
Total Market Value +
Accrued 160,596,631.10
39 Item: 6
93 HOLDINGS REPORT
Lake Forest Reporting | Account #11084 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 589,283.29 -- 589,283.29
589,283.29

1.00 589,283.29

0.00 0.89%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 589,283.29
589,283.29
589,283.29

1.00 589,283.29

0.00 0.89%

0.00 0.00

0.00 LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 60,835,656.24 --

3.82%
60,835,656.24
60,835,656.24

1.00 3.82%
60,835,656.24

0.00 91.52%

0.00 NA/NA
NA

0.00 0.00
Total LAIF 60,835,656.24 3.82%
60,835,656.24
60,835,656.24

1.00 3.82%
60,835,656.24

0.00 91.52%

0.00 0.00

0.00 LOCAL GOV

INVESTMENT POOL
90CAMP$00 CAMP 5,048,184.03 --

3.77%
5,048,184.03
5,048,184.03

1.00 3.77%
5,048,184.03

0.00 7.59%

0.00 NA/AAAm
NA

0.00 0.00
Total Local Gov
Investment Pool 5,048,184.03 3.77%
5,048,184.03
5,048,184.03

1.00 3.77%
5,048,184.03

0.00 7.59%

0.00 0.00

0.00 Total Portfolio 66,473,123.56 3.82%
66,473,123.56
66,473,123.56

1.00 3.82%
66,473,123.56

0.00 100.00%

0.00 0.00

0.00 Total Market Value +
Accrued 66,473,123.56
40 Item: 6
94 TRANSACTIONS
41 Item: 6
95 TRANSACTION LEDGER
Lake Forest Operating Reserve | Account #11083|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 04/20/2026 91282CQG9 1,500,000.00

UNITED STATES
TREASURY 3.875
03/31/2031
100.160 3.84% (1,502,402.34) (3,176.23) (1,505,578.57) 0.00 Purchase 04/22/2026 05594YAD8 720,000.00 BMWLT 2026-1 A3

4.15 05/25/2029 99.989 4.85% (719,920.44) 0.00 (719,920.44) 0.00 Purchase 04/22/2026 448972AD1 495,000.00 HALST 26B A3 4.21 04/16/2029 99.985 4.22% (494,927.83) 0.00 (494,927.83) 0.00 Purchase 04/27/2026 92970QAK1 1,015,000.00 WFCIT 2026-1 A 4.08 04/15/2031 99.986 4.12% (1,014,857.70) 0.00 (1,014,857.70) 0.00 Purchase 05/18/2026 693475CD5 1,200,000.00

PNC FINANCIAL

SERVICES GROUP INC

4.899 05/13/2031
100.257 4.83% (1,203,084.00) (816.50) (1,203,900.50) 0.00 Purchase 05/18/2026 91159HJV3 1,200,000.00 US BANCORP 5.083 05/15/2031 100.955 4.82% (1,211,460.00) (508.30) (1,211,968.30) 0.00 Purchase 05/20/2026 58769MAD2 1,150,000.00 MBART 261 A3 4.36 10/15/2030 99.978 4.60% (1,149,749.53) 0.00 (1,149,749.53) 0.00 Purchase 05/20/2026 532457DL9 545,000.00 ELI LILLY AND CO 4.375 05/20/2031 99.893 4.40% (544,416.85) 0.00 (544,416.85) 0.00 Purchase 05/22/2026 58933YCK9 645,000.00 MERCK & CO INC 4.65 05/22/2031 99.938 4.66% (644,600.10) 0.00 (644,600.10) 0.00 Purchase 05/22/2026 58933YCK9 555,000.00 MERCK & CO INC 4.65 05/22/2031 99.775 4.70% (553,751.25) 0.00 (553,751.25) 0.00 Purchase 05/27/2026 912797SX6 3,000,000.00 UNITED STATES TREASURY 06/04/2026 99.921 3.62% (2,997,622.50) 0.00 (2,997,622.50) 0.00 Purchase 06/03/2026 38151LAJ9 520,000.00

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% (520,000.00) 0.00 (520,000.00) 0.00
Purchase 06/03/2026 38151LAJ9 520,000.00

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% (520,000.00) 0.00 0.00 0.00
Purchase 06/03/2026 38151LAJ9 (520,000.00)

GOLDMAN SACHS
BANK USA 4.656
06/03/2029
100.000 4.57% 520,000.00 0.00 0.00 0.00
Purchase 06/08/2026 57636QBL7 1,360,000.00 MASTERCARD INC 4.6 06/08/2031 99.920 4.62% (1,358,912.00) 0.00 (1,358,912.00) 0.00 42 Item: 6
96 TRANSACTION LEDGER
Lake Forest Operating Reserve | Account #11083|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Purchase 06/17/2026 44935KAD5 900,000.00 HART 26B A3 4.81 02/18/2031 99.988 4.86% (899,891.37) 0.00 (899,891.37) 0.00 Purchase 06/17/2026 91282CQU8 2,500,000.00

UNITED STATES
TREASURY 4.125
05/31/2031

99.793 4.17% (2,494,824.22) (4,789.96) (2,499,614.18) 0.00 Purchase 06/25/2026 912797UP0 2,250,000.00 UNITED STATES TREASURY 07/14/2026 99.813 3.60% (2,245,790.02) 0.00 (2,245,790.02) 0.00 Total Purchase 19,555,000.00 (19,556,210.15) (9,290.99) (19,565,501.14) 0.00 TOTAL
ACQUISITIONS 19,555,000.00 (19,556,210.15) (9,290.99) (19,565,501.14) 0.00

DISPOSITIONS
Maturity 05/15/2026 02582JJZ4 (570,000.00) AMXCA 2023-1 A 4.87 05/15/2026 100.000 4.92% 0.00 0.00 0.00 0.00
Maturity 05/15/2026 4581X0EK0 (2,800,000.00)

INTER-AMERICAN

DEVELOPMENT BANK

4.5 05/15/2026
100.000 4.53% 2,800,000.00 0.00 2,800,000.00 0.00
Maturity 06/04/2026 912797SX6 (3,000,000.00) UNITED STATES TREASURY 06/04/2026 100.000 3.62% 3,000,000.00 0.00 3,000,000.00 0.00 Maturity 06/23/2026 3133EPNG6 (2,000,000.00)

FEDERAL FARM CREDIT

BANKS FUNDING CORP

4.375 06/23/2026
100.000 4.39% 2,000,000.00 0.00 2,000,000.00 0.00
Total Maturity (8,370,000.00) 7,800,000.00 0.00 7,800,000.00 0.00 Sale 04/20/2026 3133EPNG6 (1,500,000.00)

FEDERAL FARM CREDIT

BANKS FUNDING CORP

4.375 06/23/2026
100.101 4.39% 1,501,515.00 21,328.13 1,522,843.13 1,561.42 Sale 04/23/2026 91282CKG5 (1,000,000.00)

UNITED STATES
TREASURY 4.125
03/31/2029
100.906 4.57% 1,009,062.50 2,592.21 1,011,654.71 20,724.54 Sale 05/08/2026 78016FZW7 (1,000,000.00)

ROYAL BANK
OF CANADA 4.9
01/12/2028
101.196 5.26% 1,011,960.00 15,788.89 1,027,748.89 17,354.16 Sale 05/12/2026 89115A2U5 (1,000,000.00)

TORONTO-DOMINION
BANK 5.523
07/17/2028
102.339 5.51% 1,023,390.00 17,642.92 1,041,032.92 23,089.00 43 Item: 6
97 TRANSACTION LEDGER
Lake Forest Operating Reserve | Account #11083|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Sale 05/12/2026 78016HZV5 (1,000,000.00)

ROYAL BANK OF
CANADA 4.95
02/01/2029
101.596 4.98% 1,015,960.00 13,887.50 1,029,847.50 16,668.90 Sale 05/18/2026 66815L2M0 (1,000,000.00)

NORTHWESTERN

MUTUAL GLOBAL
FUNDING 4.9
06/12/2028
100.746 4.85% 1,007,460.00 21,233.33 1,028,693.33 6,570.35 Sale 06/17/2026 64952WFD0 (1,000,000.00)

NEW YORK LIFE
GLOBAL FUNDING 4.9
06/13/2028
100.889 4.87% 1,008,890.00 544.44 1,009,434.44 8,313.02 Total Sale (7,500,000.00) 7,578,237.50 93,017.42 7,671,254.92 94,281.38 TOTAL
DISPOSITIONS (15,870,000.00) 15,378,237.50 93,017.42 15,471,254.92 94,281.38 44 Item: 6
98 TRANSACTION LEDGER
Lake Forest Reporting | Account #11084|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 04/02/2026 90LAIF$00 11,000,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (11,000,000.00) 0.00 (11,000,000.00) 0.00
Purchase 04/10/2026 90LAIF$00 300,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (300,000.00) 0.00 (300,000.00) 0.00
Purchase 04/15/2026 90LAIF$00 246,424.85
Local Agency
Investment Fund State
Pool

1.000 3.81% (246,424.85) 0.00 (246,424.85) 0.00
Purchase 04/23/2026 90LAIF$00 4,700,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (4,700,000.00) 0.00 (4,700,000.00) 0.00
Purchase 04/24/2026 90LAIF$00 1,160,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (1,160,000.00) 0.00 (1,160,000.00) 0.00
Purchase 04/30/2026 90CAMP$00 16,594.90 CAMP 1.000 3.78% (16,594.90) 0.00 (16,594.90) 0.00 Purchase 05/07/2026 90LAIF$00 6,100,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (6,100,000.00) 0.00 (6,100,000.00) 0.00
Purchase 05/14/2026 90LAIF$00 1,000,000.00
Local Agency
Investment Fund State
Pool

1.000 3.82% (1,000,000.00) 0.00 (1,000,000.00) 0.00
Purchase 05/22/2026 90LAIF$00 300,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (300,000.00) 0.00 (300,000.00) 0.00
Purchase 05/26/2026 90LAIF$00 1,000,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (1,000,000.00) 0.00 (1,000,000.00) 0.00
Purchase 05/29/2026 90LAIF$00 550,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (550,000.00) 0.00 (550,000.00) 0.00
Purchase 05/29/2026 90CAMP$00 16,004.84 CAMP 1.000 3.76% (16,004.84) 0.00 (16,004.84) 0.00 Purchase 06/01/2026 90LAIF$00 1,000,000.00
Local Agency
Investment Fund State
Pool

1.000 3.81% (1,000,000.00) 0.00 (1,000,000.00) 0.00
Purchase 06/30/2026 90CAMP$00 15,584.29 CAMP 1.000 3.77% (15,584.29) 0.00 (15,584.29) 0.00 45 Item: 6
99 TRANSACTION LEDGER
Lake Forest Reporting | Account #11084|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
Total Purchase 27,404,608.88 (27,404,608.88) 0.00 (27,404,608.88) 0.00 TOTAL
ACQUISITIONS 27,404,608.88 (27,404,608.88) 0.00 (27,404,608.88) 0.00

DISPOSITIONS
Sale 04/02/2026 90CAMP$00 (10,080,623.08) CAMP 1.000 3.78% 10,080,623.08 0.00 10,080,623.08 0.00 Sale 04/08/2026 90LAIF$00 (2,650,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 2,650,000.00 0.00 2,650,000.00 0.00
Sale 04/15/2026 90LAIF$00 (1,200,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 1,200,000.00 0.00 1,200,000.00 0.00
Sale 04/29/2026 90LAIF$00 (1,100,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 1,100,000.00 0.00 1,100,000.00 0.00
Sale 05/13/2026 90LAIF$00 (3,000,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 3,000,000.00 0.00 3,000,000.00 0.00
Sale 05/20/2026 90LAIF$00 (800,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 800,000.00 0.00 800,000.00 0.00
Sale 05/28/2026 90LAIF$00 (500,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 500,000.00 0.00 500,000.00 0.00
Sale 06/03/2026 90LAIF$00 (150,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 150,000.00 0.00 150,000.00 0.00
Sale 06/10/2026 90LAIF$00 (1,500,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.81% 1,500,000.00 0.00 1,500,000.00 0.00
Sale 06/18/2026 90LAIF$00 (900,000.00)
Local Agency
Investment Fund State
Pool

1.000 3.82% 900,000.00 0.00 900,000.00 0.00
Total Sale (21,880,623.08) 21,880,623.08 0.00 21,880,623.08 0.00 46 Item: 6
100

TRANSACTION LEDGER
Lake Forest Reporting | Account #11084|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/
Sold Total Amount Gain/Loss
TOTAL
DISPOSITIONS (21,880,623.08) 21,880,623.08 0.00 21,880,623.08 0.00 47 Item: 6
101

IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yields represent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 48 Item: 6
102

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr Unsubordinated US
Treasury & Agency Index
The ICE BofA 1-5 Year UnsubordinatedUS Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 49 Item: 6
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CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/21/2026
DEPARTMENT: City Clerk
SUBJECT:

LAKE FOREST MUNICIPAL CODE AMENDMENTS RELATED TO GROUP

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

Conduct second reading of and adopt 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) 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.

The proposed amendments to Title 5 and 9 are intended to ensure that disabled individuals are afforded an equal opportunity to live in residential neighborhoods, while protecting the health, safety, and welfare of the community. On July 7, 2026, the City Council introduced the proposed Ordinance for first reading. Staff recommend the City Council conduct a second reading and adopt the proposed Ordinance.

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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:

Attachment – Ordinance Amending Titles 5 and 9
Initiated By: Thy Merritt, City Clerk
Submitted By: Thy Merritt, City Clerk
Approved By: Debra Rose, City Manager
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8 Attachment
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8 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, well- balanced 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: 7
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8 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_Neighborhood- Are_cities_responsibly_managing_the_integration_of_group_homes.pdf.” Item: 7
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8 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 sober- living 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 non- disabled 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: 7
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8 study found that 65–70 percent of recovering addicts leave even earlier2); (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 2.86.3 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 data4, 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 2 David Deberry and Jeff Ballinger, Group Homes in the Neighborhood, Western City Magazine, September 1, 2006.
3 United States Census Bureau, 2019-2023,
https://www.census.gov/quickfacts/fact/table/CA/HSD310223. 4 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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8 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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8 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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8 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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8 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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8 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: 7
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8 houses do not include: (1) group homes (including residential care facilities and sober-living homes) or (2) transitional or supportive housing.

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.

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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8 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:

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 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;
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8 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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8 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:

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 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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8 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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8 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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8 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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8 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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8 ABSENT: COUNCIL MEMBERS
ABSTAIN: COUNCIL MEMBERS

THY MERRITT

CITY CLERK
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8 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 boardinghouse- like impacts of group homes by reducing noise and traffic, preserving safety and providing adequate on street parking; (3) providing opportunities afforded to non- disabled 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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8 “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: 7
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8 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: 7
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8 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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8 “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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8 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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8 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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8 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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8 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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8 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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8 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 City- approved 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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8 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 group- home residents subject to the sex offender registration requirements of Item: 7
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8 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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8 § 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: 7
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8 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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8 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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8 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.

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.

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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8 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: 7
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8 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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8 § 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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CITY COUNCIL AGENDA REPORT
MEETING DATE: 07/21/2026
DEPARTMENT: Public Works
SUBJECT:

NOTICE OF COMPLETION FOR RANCHO PARKWAY & LAKE FOREST

DRIVE STREET IMPROVEMENTS, JERONIMO ROAD & LAKE FOREST

DRIVE IMPROVEMENTS , AND LOS ALISOS BOULEVARD & ROCKFIELD

BOULEVARD INTERSECTION IMPROVEMENTS
RECOMMENDED ACTION(S):

1. Find that All American Asphalt has completed construction of Rancho Parkway & Lake Forest Drive Street Improvements (24T05), Jeronimo Road & Lake Forest Drive Improvements (24T06), and Los Alisos Boulevard & Rockfield Boulevard Intersection Improvements (24T07).

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

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

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

EXECUTIVE SUMMARY:

On August 20, 2024, the City Council awarded a construction contract to All American Asphalt ("AAA") in the amount of $1,889,257.30 for three Lake Forest Transportation Mitigation (“LFTM”) Program traffic improvement projects (“Projects”):
Rancho Parkway & Lake Forest Drive Street Improvements (24T05); Jeronimo Road & Lake Forest Drive Improvements (24T06); and Los Alisos Boulevard & Rockfield Boulevard Intersection Improvements (24T07).

The Projects improve traffic operations by widening or restriping approaches to provide eight-foot bicycle lanes that also function as shared bicycle/right-turn Item: 8
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lanes, increasing intersection capacity while maintaining bicycle accommodations.

Construction began on January 13, 2025. During construction, Contract Change Order No. 1 added $51,285.37 for additional work, while Contract Change Order No. 2 reduced the contract amount by $227,241.56 to remove unavailable closed-circuit television (“CCTV”) equipment and reconcile final contract quantities. The final construction contract amount is $1,713,301.11. After final inspection of the Projects, reconciliation of final contract quantities, and progress payment processing, the Projects are now ready for the Notice of Completion.

Staff are requesting the City Council approve the Notice of Completion (Attachment) and direct staff to release any unencumbered retention in accordance with California law. Sufficient funds exist in the 2023-25 Capital Improvement Projects Budget to cover the costs of the recommended action.

BACKGROUND:

The Lake Forest Transportation Mitigation (“LFTM”) Program, established by Ordinance No. 186, identifies transportation improvements needed to mitigate traffic impacts from development, while maintaining acceptable levels of service on the City of Lake Forest’s (“City”) arterial roadway system.

On June 20, 2023, the City Council adopted the Fiscal Year 2023–2025 Capital Improvement Program Budget, which included the Projects addressed by this contract. On August 20, 2024, the City Council awarded a construction contract to AAA in the amount of $1,889,257.30. The City Council also adopted a resolution to appropriate an additional $1,263,129 in unallocated funds from the LFTM Program for Fiscal Year 2024-25 to ensure there is sufficient funding for the Projects.

Construction commenced on January 13, 2025. During construction, the City Manager approved Contract Change Order No. 1, increasing the contract by $51,285.37 to extend slurry seal and pavement striping limits, replace a traffic signal mast arm, and install additional conduit on Jeronimo Road north of Lake Forest Drive. The City Manager also approved Contract Change Order No. 2, decreasing the contract by $227,241.56. This change order reconciled final contract quantities and removed the procurement and installation of CCTV camera equipment from the contract due to continued manufacturer supply delays.

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DISCUSSION:

AAA has completed construction activities for Rancho Parkway & Lake Forest Drive Street Improvements (24T05), Jeronimo Road & Lake Forest Drive Improvements (24T06), and Los Alisos Boulevard & Rockfield Boulevard Intersection Improvements (24T07). The City’s construction manager conducted a final inspection to ensure the Projects’ completion per the contract requirements.

Approval of the Notice of Completion formally accepts the Projects, authorizes recordation with the Orange County Clerk-Recorder, establishes the statutory period for filing stop notices and claims, and initiates the warranty period.

Staff recommend the City Council approve the Notice of Completion and authorize release of any unencumbered retention in accordance with California law.

FISCAL IMPACT:

The original construction contract amount was $1,889,257.30. Contract Change Order No. 1 increased the contract by $51,285.37, while Contract Change Order No. 2 reduced the contract by $227,241.56, resulting in a final construction contract amount of $1,713,301.11.

Sufficient funding was appropriated in the Fiscal Year 2024–2025 Capital Improvement Program Budget. Approval of the recommended actions will not require any additional appropriation.

ATTACHMENTS:

Notice of Completion for Rancho Parkway & Lake Forest Drive Street Improvements (24T05), Jeronimo Road & Lake Forest Drive Improvements (24T06), and Los Alisos Boulevard & Rockfield Boulevard Intersection Improvements (24T07)
Initiated By: Nazila Mokarram, Assistant Director of Public Works/ Assistant City Engineer
Submitted By: Douglas Erdman, Director of Public Works/ City Engineer Approved By: Debra Rose, City Manager
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ATTACHMENT
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RECORDING REQUESTED BY
AND MAIL TO:

City Clerk
City of Lake Forest
100 Civic Center Drive
Lake Forest, California, 92630

Fee Exempt – Gov’t Code §27383

NOTICE OF COMPLETION
(C.C.C. 9204 - PUBLIC WORKS)

NOTICE IS HEREBY GIVEN THAT:

1. The City of Lake Forest located at 100 Civic Cen ter Drive, Lake Forest, California, 92630 has completed a public work of improvement described as Rancho Parkway & L ake Forest Drive Street Improvements (24T05), Jeron imo Road & Lake Forest Drive (24T06), and Los Alisos Bo ulevard & Rockfield Boulevard Intersection Improvements (24T07) and accepted by the awarding authority upon the date hereof.

2. Date of completion: July 21, 2026

3. Description of work performed: Lake Forest Drive and Rancho Parkway Improvement Project (24T05); La ke Forest Drive and Jeronimo Road Intersection Widenin g Project (24T06); and Los Alisos Boulevard and Roc kfield Boulevard Improvement Project (24T07).

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

5. The real property upon which said public work wa s performed in the City of Lake Forest is: Public right-of-way southbound Jeronimo Road at Lake Forest Drive; sout hbound Rancho Parkway at Lake Forest Drive; and westbound Los Alisos at Rockfield.

6. The contractor was: All American Asphalt

Dated ____________________________________ _______ ___________________________________ Rober Pequeno, Mayor

ATTEST:

_________________________________________
Thy Merritt, City Clerk

VERIFICATION

I, the undersigned, say: I am the Mayor of the City of Lake Forest, the declarant of the foregoing Not ice of Completion; I have read said Notice of Completion and know the co ntents thereof, the same is true of my knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed at Lake Forest, California, on this ____ day of _________________, 2026.

__________________________________________
Rober Pequeno, Mayor

ATTEST:

__________________________________________
Thy Merritt, City Clerk

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CITY COUNCIL AGENDA REPORT
MEETING DATE: 07/21/2026
DEPARTMENT: Management Services
SUBJECT:

AWARD OF PROFESSIONAL CONSULTANT SERVICES AGREEMENT TO

JACOB GREEN AND ASSOCIATES FOR EMERGENCY MANAGEMENT

TRAINING AND EXERCISE PROGRAM
RECOMMENDED ACTION(S):

1. Award an Agreement with a compensation amount of $114,500 to Jacob Green & Associates for development and implementation of a comprehensive Emergency Management Training and Exercise Program.

2. Authorize the Mayor to sign, and the City Clerk to attest, the Professional Consultant Services Agreement with Jacob Green & Associates, substantially in the form attached.

EXECUTIVE SUMMARY:

Emergency management plays a critical role in minimizing the impacts of disasters and local emergencies while enhancing community resilience. To effectively maintain this capability, staff require ongoing training to ensure a coordinated, timely, and effective response to critical incidents involving hazards such as wildfires, earthquakes, cybersecurity attacks, and other emerging threats. To achieve this, the City maintains an Emergency Management Program that includes emergency response plans and protocols, education on the vital roles within the City’s Emergency Operations Center (“EOC”), and specific emergency management training for staff, volunteers, and elected officials.

On March 9, 2026, staff issued a Request for Proposals (“RFP”) to procure the services of a firm to provide an Emergency Management Training and Exercise Program. The RFP document was posted to OpenGov, the City’s electronic procurement management system. The City received fifteen (15) responses by the April 1, 2026, deadline. A Selection Committee, approved by the City Manager, reviewed all proposals and conducted interviews with proposers that met minimum qualifications.

Following completion of the procurement process, Jacob Green & Associates (“JGA”) received the highest score. Staff recommend approval of the attached Professional Consultant Services Agreement with JGA (“proposed Agreement”) Item: 9
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(Attachment 1).The proposed Agreement includes a $114,500 compensation amount and three-year initial term. If approved, the term of the proposed Agreement would begin July 22, 2026, and end on June 30, 2029. The proposed Agreement includes two (2) one-year contract extension options that the City Council may exercise at their discretion. Staff performed reference checks for JGA, all of which provided favorable reviews (Attachment 2).

BACKGROUND:

The City contracts with the Orange County Sheriff’s Department (“OCSD”) and is served by the Orange County Fire Authority (“OCFA”) for public safety services.

These two agencies play significant roles in the City’s overall response during emergencies. In conjunction with the work of these agencies, the City is responsible for maintaining an Emergency Management Program that focuses on response plans, approved protocols, and training for staff roles/responsibilities in the event of an emergency that requires the activation of the EOC. The process of activating the EOC requires familiarity with the various protocols and documentation related to the incident to ensure it is executed successfully. As such, it is critical that staff, volunteers, and elected officials receive regular training on emergency management procedures and participate in EOC exercises. Furthermore, it is imperative that the City have approved plans and protocols in place that enable staff working in the EOC to perform effectively in the event of an emergency.

At its October 5, 2021, meeting, the City Council approved a three-year professional consultant services agreement with JGA for emergency management consulting and training services. Under this agreement, JGA provided training to elected officials and staff, including EOC Tabletop exercises.

The agreement term was for three years and concluded in 2024. To ensure the City stays current on emergency management planning and training on a regular basis, staff published an RFP on March 9, 2026, to procure professional consultant services for the development and implementation of a comprehensive Emergency Management Training and Exercise Program.

DISCUSSION:

Staff issued an RFP for an Emergency Management Training and Exercise Program on March 9, 2026, via OpenGov, the City’s electronic procurement management system. The City received 15 proposals in response to the RFP. Of these proposals, a total of 13 met the minimum evaluation criteria required to review their proposals in full. Pursuant to the City’s Purchasing and Contracting Guidelines (“Purchasing Guidelines”), staff assembled a Selection Committee of Item: 9
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five evaluators approved by the City Manager to review proposals and participate in the interview process. The Selection Committee comprised the following staff:
Assistant to the City Manager
Deputy City Manager
Administrative Services Manager - Management Services Department Senior Management Analyst - Management Services Department Management Analyst – Finance Department
Review Process
The review process is comprised of three phases: the Technical Review of written proposals, the Qualifications Interview, and the cost proposal evaluation.

The Selection Committee rated proposals in five categories on a weighted scale from zero to ten. A firm must receive an average of 60 points, (60%) or higher, in the Technical Review phase to move on to the Qualifications Interview phase.

As shown below, a total of five of the 13 responsive proposals received an average score of 60 or higher, thereby qualifying for the interview process. The remaining 10 firms scored below 60 points on their Technical Proposals and therefore did not qualify for the interview process. The results of the Technical Review phase are summarized in Table 1 below:

Table 1: Technical Review Phase Scoring
Vendor Evaluator
1 Evaluator
2 Evaluator
3 Evaluator
4 Evaluator
5 Total
Score
(Max
Score
100)
Constant and
Associates,
Inc.
80 79 83.5 84 68.5 79
Jacob Green
and
Associates
Inc.

86.5 80.5 80 74.5 60 76.3
Tamarack
Management 81.5 80 74.5 70 68.5 74.9
Cyte
Security Inc. 77 77.5 64.5 68.5 69 71.3
The
Olson Group
Ltd.
70 76.5 64 70 53.5 68.8
CrisisReady
Lab 60 49 71 64.5 53.5 59.6

WSP USA
Solutions Inc. 59 55 49.5 65 61.5 58
EMSI Inc. 58.5 54.5 68.5 55.5 53 58
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Vendor Evaluator
1 Evaluator
2 Evaluator
3 Evaluator
4 Evaluator
5 Total
Score
(Max
Score
100)
Hagerty
Consulting
Inc.

56.5 57 50.5 53 65.5 56.5
Porsena
Solutions LLC 55.5 40.5 49.5 49.5 54.5 49.9
Public
Advisors
Group LLC

58.5 40 46.5 47 57 49.8
ClearPath
Solutions
Group LLC
43 52.5 50 52 48 49.1
DavisLogic
Inc. dba All
Hands
Consulting

37.5 37.5 47.5 54 53.5 46
Utility
Response
Training
Associates
LLC
Excluded
0 0 0 0 0 0
MLC &
Associates
Excluded
0 0 0 0 0 0
Pursuant to the City’s Purchasing Guidelines, the City invited the firms that scored a minimum of 60 points for an interview to discuss their respective approaches to the requested services. Following the Qualifications Interviews and subsequent scoring by the Selection Committee, the Purchasing Coordinator reviewed the cost proposals. The Qualifications Interview and Cost Proposal Evaluation phase scoring is reflected in Table 2.

Table 2: Qualifications Interviews and Cost Proposal Review Phase Scoring Vendor Evaluator
1 Evaluator
2 Evaluator
3 Evaluator
4 Evaluator
5 Total
Score
(Max
200)
Jacob Green
& Associates 179.2 156 150.4 168 134 157.52
Tamarack
Management 164.2 159.4 102.6 145 152.2 144.68
Cyte Security
Inc. 174 128.4 97.2 126 156.4 136.4
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Vendor Evaluator
1 Evaluator
2 Evaluator
3 Evaluator
4 Evaluator
5 Total
Score
(Max
200)
The Olson
Group, Ltd. 152.2 125.8 146.6 117.8 125 133.48
Constant and
Associates,
Inc.
148.2 97.8 114.6 133.8 105 119.88
Including the cost proposal component, JGA received the highest ranking in the proposal review process. Table 3 shows the total cost, across the three-year term, for the firms that made it to the Qualifications Interview and Cost Proposal Evaluation phase.

Table 3: Proposed Compensation
Vendor Total Aggregate Score Total Cost
Jacob Green &
Associates 157.52 $114,500
Tamarack Management 144.68 $262,945
Cyte Security Inc. 136.4 $154,300
The Olson Group, Ltd. 133.48 $264,650
Constant and
Associates, Inc. 119.88 $352,606.70
Recommended Consultant - JGA
The City’s Purchasing Guidelines outline specific criteria to consider when selecting the most qualified vendor for a service, including:
Proposal Cost;
Ability, capacity, and skill to perform the required services; Ability to provide the services promptly without scheduling delays; Character, integrity, reputation, judgment, experience, and efficiency of the vendor; and,
Quality reference checks with reputable current and former agencies.

Based on the Technical Review and Qualifications Interview, the Selection Committee determined JGA to be the most qualified vendor, providing the best overall value for the services. JGA has extensive experience developing and implementing emergency management programs and providing emergency training to municipalities. Their proposed staff for the services have provided Item: 9
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EOC training and other emergency management services for several public- sector and municipal clients, including other agencies within Orange County. This experience provides them with familiarity with the emergency services operational environment in the greater Orange County region, which would assist them in developing specific, relevant training for City staff, volunteers, and elected officials. Furthermore, JGA provided multi-year comprehensive emergency management services for the City from 2021 to 2024. Work under this agreement included:
Emergency management training and exercises for staff and elected officials
Emergency Operations Plan
Continuity of Operations Plan
Local Hazard Mitigation Plan
During the term of this previous agreement with the City, staff found JGA to be professional, highly knowledgeable in the emergency management field, and committed to providing a high level of service to the City. JGA’S previous experience working with the City provides them with a level of familiarity with Lake Forest, and Orange County in general, that would enable them to tailor their trainings specifically for scenarios that could realistically impact the city. In addition, their direct experience working with the City would reduce the time needed to familiarize themselves with the City’s organizational structure, operational environment, and emergency operations needs, allowing for efficient service delivery.

Staff conducted three reference checks for JGA, pursuant to the Purchasing Guidelines, all of which highly recommended the firm. References noted that JGA is highly knowledgeable in their field, professional, and works collaboratively with staff to ensure a high level of service is provided and the desired outcomes are achieved.

Proposed Scope of Work
The scope of services under this RFP included delivery of a comprehensive Emergency Management Training and Exercise Program, including but not limited to; scenario-based activities, facilitated discussions, workshops, and hands-on exercises that are accessible, relevant, and aligned with the City’s emergency management priorities as well as compliant with HSEEP standards.

Services would also include:
Annual emergency management training for elected officials; Annual emergency management training for City staff;
EOC Tabletop exercise (Year One and Year Three of agreement); Item: 9
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EOC Functional Exercise (Year Two of agreement);
Annual Community Emergency Response Team (“CERT”) Functional Exercise; and,
Development of EOC Activation Plan (Year Three of agreement).

Proposed Agreement
Staff recommend the City Council approve the proposed Agreement with JGA for development of an Emergency Management Training and Exercise Program.

The proposed Agreement includes a total not-to-exceed compensation of $114,500. The term would be for three years with two optional one-year extensions. The proposed Agreement was prepared by the Public Safety Division staff and has been reviewed by the City Attorney and approved as to form.

FISCAL IMPACT:

The proposed Agreement with JGA includes a total compensation amount of $114,500 and a three-year term with two optional one-year extensions. Sufficient funds are available in the 2025-2027 Operating Budget to cover the costs of the recommended action.

ATTACHMENTS:

1. Attachment 1 - Jacob Green and Associates Professional Consultant Services Agreement

2. Attachment 2 - Vendor Reference Check
Initiated By: Sharlyn de la Paz, Administrative Services Manager Submitted By: Sean McGovern, Deputy City Manager
Approved By: Debra Rose, City Manager
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ATTACHMENT 1
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EMERGENCY MANAGEMENT TRAINING AND EXERCISE
(2026-084)
City of Lake Forest
100 Civic Center Dr.

Lake Forest, CA 92630










 


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City of Lake Forest
Professional Consultant Services Agreement
Emergency Management Training and Exercise
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 ...........................................











 


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Title: Emergency Management Training and Exercise
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 Jacob Green and Associates Inc, a CaliforniaCorporation (Inc.) , with its principal place of business at 13217 Jamboree Rd. #248, Tustin, CA 92782 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” 









 


Item: 9
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Title: Emergency Management Training and Exercise
4 2. RECITALS.

2.1. Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional Emergency Management Training and Exercise Program Services 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 Emergency Management Training and Exercise Program Services 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 Emergency Management Training and Exercise Program Services consulting services for the TBD project ("Project") as set forth in this Agreement.











 


Item: 9
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Title: Emergency Management Training and Exercise
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 Emergency Management Training and Exercise Program Services 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.

3.1.2 Term. The term of this Agreement shall be from July 22, 2026 to June 30, 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.










 


Item: 9
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Title: Emergency Management Training and Exercise
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: James Woodward, Project Lead Randy Black, Senior Advisor Meghan Murray, Project Specialist.

3.2.5 City's Representative. The City hereby designates Sean McGovern, Deputy City Manager, 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 Tony Coletta, Project Manager, 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 









 


Item: 9
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Title: Emergency Management Training and Exercise
7 failure to comply with the standard of care provided for herein. Any employee of the Consultant or its 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 









 


Item: 9
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Title: Emergency Management Training and Exercise
8 authority. Consultant must additionally comply with the lawful requirements of the City, and any other 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.










 


Item: 9
165

Title: Emergency Management Training and Exercise
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 ONE HUNDRED FOURTEEN THOUSAND FIVE HUNDRED DOLLARS ($114,500.00) 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, 









 


Item: 9
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Title: Emergency Management Training and Exercise
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: Jacob Green and Associates Inc 13217 Jamboree Rd. #248










 


Item: 9
167

Title: Emergency Management Training and Exercise
11 Tustin, CA 92782
ATTN: Tony Coletta, Project Manager
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 notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) 









 


Item: 9
168

Title: Emergency Management Training and Exercise
12 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 non- appealable 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. 









 


Item: 9
169

Title: Emergency Management Training and Exercise
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 









 


Item: 9
170

Title: Emergency Management Training and Exercise
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.










 


Item: 9
171

Title: Emergency Management Training and Exercise
15 4. SIGNATURES.

4.1. SIGNATURES.

CITY OF LAKE FOREST Jacob Green and Associates Inc
By: [AUTHORIZED CITY SIGNATURE]

Robert Pequeño
Mayor
By: [VENDOR SIGNATURE 1]

Jacob Green
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]

Jacob Green
Secretary (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]










 


Item: 9
172

Title: Emergency Management Training and Exercise
16 5. EXHIBIT "A" SCOPE OF SERVICES

5.1. EXHIBIT "A" SCOPE OF SERVICES
Consultant shall provide the following Emergency Management Training and Exercise Program Services professional consulting services relative to the City's Emergency Management Training and Exercise Program Services project.

Consultant will design, manage, and deliver a comprehensive training and exercise program tailored to the needs of the City of Lake Forest. The program must employ a flexible and innovative approach to emergency management training that promotes engagement, creativity, and adaptability among participants. Rather than relying solely on traditional lecture-based instruction, the program should incorporate interactive and applied learning techniques—such as scenario-based activities, facilitated discussions, workshops, and hands-on exercises—w hile maintaining full compliance with Homeland Security Exercise and Evaluation Program (HSEEP) standards.

The training curriculum must include foundational NIMS and ICS courses, such as ICS-100 and ICS-700, and provide the capability to integrate additional courses based on the specific needs, roles, and responsibilities of City employees. The contractor should ensure that all training offerings are accessible, relevant, and aligned with the City’s emergency management priorities, operational realities, and workforce development goals.

Training for Elected Officials
x 1 Session @ 1.5 hours (1 session per year - July/August) x Training to include:
o Basic fundamentals of the City's emergency management system and infrastructure o Overview of the California Standardized Emergency Management System o Overview of the National Incident Management System
o Overview of the City's Emergency Organization
o Purpose of the Emergency Operations Plan
o Function of the City's Emergency Operations Center
o Purpose and Process for Proclaiming a Local Emergency o Senior Official's role in preparedness, response, and recovery Evaluation and Reporting
o Administer pre- and post-training evaluations.
o Provide After-Action Reports (AARs) summarizing exercise outcomes, lessons learned, and recommendations for improvement.










 


Item: 9
173

Title: Emergency Management Training and Exercise
17 o Submit a final program report at the conclusion of the contract, incorporating findings from all exercises and evaluations.
o Ensure all exercises follow HSEEP guidelines and include a detailed exercise planning cycle, execution, and after-action review process
Training for City Staff
x 2 Sessions @ 4.0 hours (2 sessions per day, 1 time a year - September/October) x Training to include:
o Roles and responsibilities in the Emergency Operations Center (EOC) o The Planning Cycle of the EOC
o The Operation of the EOC
o Developing an EOC Action Plan
o Deactivating and demobilizing the EOC
o Develop After-Action Reports summarizing lessons learned and recommendation for improvement
Emergency operations Center Tabletop Exercise (Year 1 and Year 3) x 2 Sessions @ 4.0 hours each (2 sessions per day, 1 time a year in March/April), (Year One and Year Three)
x Create an exercise to incorporate an EOC response focusing on creating a low-stress, learning environment to provide staff with a practical application to EOC activation x Each session will build upon the other session
x Integrate the development of an After-Action Report (AAR) summarizing exercise outcomes, lessons learned, and recommendations for improvement
x Administer pre- and post-training evaluation
x Ensure all exercises follow HSEEP guidelines and include a detailed exercise planning cycle, executions and after-action review process
Emergency Operations Center Functional Exercise (Year 2) x 1 Session per year in March/April (Year Two)
x Incorporate all lessons learned from prior training sessions and the tabletop exercise x Create a functional exercise to include EOC Activation, reports from field personnel, shelter set- up










 


Item: 9
174

Title: Emergency Management Training and Exercise
18 x Integrate the development of After-Action Report (AAR) summarizing exercise outcomes, lessons learned and recommendations for improvement
x Administer pre- and post-training evaluations
x Provide After-Action Reports (AARS) summarizing exercise outcomes, lessons learned, and recommendations for improvement
x Ensure all exercises follow HSEEP guidelines and include a detailed exercise planning cycle, executions and after-action review process
Community Emergency Response Team (CERT) Functional Exercise x 1 Session annually (Year One, Two, and Three)
x Utilize the Federal Emergency Management Agency (FEMA) Community Emergency Response Team (CERT) Basic Training Program ideology and objectives to develop a functional exercise testing the knowledge, skills, and training of City CERT Volunteers x Administer pre- and post-training evaluations
x Provide After-Action Report summarizing exercise outcomes, lessons learned and recommendations for improvement
Develop an Emergency Operations Center Activation Plan (Year 3) x Develop protocol for the City's activation of the EOC based on the recommendations and lessons learned from the first two years of EOC training, tabletop exercise and functional exercise.
x Incorporate the limitations and capabilities of the Lake Forest as a "contact city" with the Orange County Sheriff's Department and Orange County Fire Authority x The Plan should include but not limited to:
o Purpose of an EOC
o Activation Guidelines (i.e. when to activate, who can activate, level of activation, etc.) o Alert and Warning Systems (alert message templates, City's alerts and warning systems) o EOC Set-Up and Organization
o Required Forms (sign-in, assignments, activity logs, etc.) x The Plan should be approximately 15-25 pages in length x Provide a draft EOC Activation Plan for review within the first three months x Provide a finalize plan that incorporates staff comments 









 


Item: 9
175

Title: Emergency Management Training and Exercise
19 x Present the final EOC Activation Plan to City Council during a regular scheduled meeting on the first or third Tuesday of each month










 


Item: 9
176

Title: Emergency Management Training and Exercise
20 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.










 


Item: 9
177

Title: Emergency Management Training and Exercise
21 7. EXHIBIT "C" - COMPENSATION

7.1. EXHIBIT "C" - 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 ONE HUNDRED FOURTEEN THOUSAND FIVE HUNDRED DOLLARS ($114,500.00). Compensation shall be paid per the following schedule and terms.

Emergency Management Training and Exercise (Year 1)
Line Item Description Unit of Measure Total
1 Training for Elected Officials Not to Exceed $3,950.00 2 EOC Training (2 repetitive sessions per day, 1 per year) Not to Exceed $10,900.00 3 EOC Tabletop Exercise (2 sessions per day, 1 per year) Not to Exceed $10,900.00 4 CERT Functional Exercise Not to Exceed $5,175.00
Total: $30,925.00
Emergency Management Training and Exercise (Year 2)
Line Item Description Unit of Measure Total
1 Training for Elected Officials Not to Exceed $3,950.00 2 EOC Training (2 repetitive sessions per day, 1 per year) Not to Exceed $10,900.00 3 EOC Functional Exercise (1 session, 1 per year) Not to Exceed $12,500.00 4 CERT Functional Exercise Not to Exceed $5,175.00
Total: $32,525.00
Emergency Management Training and Exercise (Year 3)
Line Item Description Unit of Measure Total
1 Training for Elected Officials Not to Exceed $3,950.00 2 EOC Training (2 repetitive sessions per day, 1 per year) Not to Exceed $10,900.00 3 EOC Tabletop Exercise (2 sessions per day, 1 per year) Not to Exceed $10,900.00 4 CERT Functional Exercise Not to Exceed $5,175.00
Total: $30,925.00
EOC Activation Plan (Year 3)
Line Item Description Unit of Measure Total










 


Item: 9
178

Title: Emergency Management Training and Exercise
22 1 EOC Activation Plan Not to Exceed $16,375.00
2 City Council Presentation (date to be determined) Not to Exceed $3,750.00 Total: $20,125.00
Total Contract Amount Years 1-3 $114,500.00
Optional Years (Subject to Amendments exercising optional one-year extensions per Section 3.1.2 of the Agreement (Year 4)
Line Item Description Unit of Measure Total
1 Training for Elected Officials Not to Exceed $4,325.00 2 EOC Training (2 repetitive sessions per day, 1 per year) Not to Exceed $11,990.00 3 EOC Functional Exercise (1 session, 1 per year) Not to Exceed $13,750.00 4 CERT Functional Exercise Not to Exceed $5,695.00
Total: $35,760.00
Optional Years (Subject to Amendments exercising optional one-year extensions per Section 3.1.2 of the Agreement (Year 5)
Line Item Description Unit of Measure Total
1 Training for Elected Officials Not to Exceed $4,325.00 2 EOC Training (2 repetitive sessions per day, 1 per year) Not to Exceed $11,990.00 3 EOC Functional Exercise (1 session, 1 per year) Not to Exceed $13,750.00 4 CERT Functional Exercise Not to Exceed $5,695.00
Total: $35,760.00











 


Item: 9
179

Title: Emergency Management Training and Exercise
23 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.
(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.

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:










 


Item: 9
180

Title: Emergency Management Training and Exercise
24 (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. (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 self- insurance 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 









 


Item: 9
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Title: Emergency Management Training and Exercise
25 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.

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 









 


Item: 9
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Title: Emergency Management Training and Exercise
26 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.











 


Item: 9
183

ATTACHMENT 2
Item: 9
184

Management Services
Emergency Management Training and Exercise Program RFP
Vendor Reference Check
Contact #1 Contact #2 Contact #3
City of San Juan Capistrano
Ben Siegal, City Manager
(949) 493-1171
[email protected]
City of Corona
Brian Young, Fire Chief
(951) 736-2220
[email protected]
City of Oxnard
Alexander Hamilton, Fire Chief
(805) 385-7722
[email protected]
g

QUESTIONS RESPONSE RESPONSE RESPONSE
What services
were performed?
Emergency Management training
and emergency plan review and
update.

Speaking specifically for
Corona Fire, we have used
JGA for multiple projects in
the Emergency Management
and Operations realm from
section-specific Emergency
Operations Center training
and workshops to a multi-
county Special Operations
Continuity of Operations Plan
Emergency Management
consulting, training for staff
and City Council, Fire Station
Assessment as well as
assistance in strategic plan
development. Additionally,
JGA provided mediation
services for an isolated
personnel issue.

How satisfied
were you with the
quality of services
provided?
Very satisfied
Completely satisfied with the
work product, staff expertise
and training curriculum.

Jacob Green and Associates
have been simply outstanding
to work with. I would highly
recommend them to any local
government looking for the
kinds of services they provide.

Did the firm
complete the
work within the
agreed-upon
timeframe and
budget?
Yes Always Yes
How effective did
the firm
communicate
throughout the
engagement?
JGA did an outstanding job with
communications, from inception
through completion.

As expected, thoroughly and
at the agreed-upon cadence.

JGA staff and Jacob Green
himself were accessible
through each project. Staff
always provided timely
updates and communicated
very effectively.

Would you hire
the firm again? Yes
Yes – JGA is an excellent
vendor that never
disappoints. The entire team
is held to the highest level of
professionalism. You should
have no concerns retaining
them for a variety of project
work!
Yes – JGA’s work product has
been unmatched. The staff
JGA brings to a project have
such an incredible depth of
experience and are able to
meet any challenges
presented.

Do you have any
additional
comments?
We were very impressed with the
JGA team. They provided
experienced trainers that
developed customized training
programs for each department
and the organization as a whole.

They were also invaluable in
helping us in all aspects of
developing our emergency
management program.

Highly recommend.

Item: 9
185

CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/21/2026
DEPARTMENT: City Clerk
SUBJECT:

THIRD AMENDMENT TO THE AGREEMENT WITH MCCI, LLC, FORMERLY ECS IMAGING, INC., FOR ELECTRONIC DOCUMENT MANAGEMENT

SOFTWARE AND SERVICES
RECOMMENDED ACTION(S):

1. Approve a Third Amendment to the Agreement with MCCi, LLC, formerly ECS Imaging, Inc. for electronic document management software and services for a one-year term extension with an increase in compensation of $38,777.90, bringing the total not-to-exceed amount to $226,597.90.

2. Authorize the Mayor to sign, and the City Clerk to attest, the Third Amendment to the Agreement with MCCi, LLC substantially in the form attached.

EXECUTIVE SUMMARY:

On August 16, 2022, the City Council awarded a Professional Consultant Services Agreement (“Agreement”) to ECS Imaging, Inc. (“ECS”) to deploy Laserfiche for electronic document management services in the amount of $122,700 (Attachment 1). On June 18, 2024, the City Council approved a First Amendment to the Agreement with ECS in the amount of $15,120 to implement the Personnel Action Forms process (“PAFs”), bringing the total not-to-exceed amount to $137,820 (Attachment 2). In May of 2025, MCCi, LLC (“MCCi”), acquired ECS and services under the Agreement continued (Attachment 3). On July 1, 2025, the City Council approved a Second Amendment to the Agreement with ECS in the amount of $50,000 to exercise a one-year extension, bringing the total not-to-exceed amount to $187,820 (Attachment 4).

ECS, now MCCi, continues to be the best qualified partner to support the City’s Electronic Document Management System. Staff recommend approving the proposed Third Amendment to the Agreement with MCCi for electronic document management software and services for a final one-year extension with an increase in compensation of $38,777.90 (Attachment 5). The additional compensation for the fifth year of services under the proposed Third Amendment includes increased fixed fees and hourly rates and would bring the total compensation amount to $226,597.90.

Item: 10
186

BACKGROUND:

Aligned with the City’s Strategic Business Plan Initiative SP#49 for Fiscal Years 2025-26 through 2031-32, staff procured a new document retention system to increase public access to the City of Lake Forest’s (“City”) records. On August 16, 2022, following a competitive proposal process, the City Council awarded the Agreement to ECS to deploy Laserfiche for electronic document management services in the amount of $122,700.

Table 1 outlines the agreement history for electronic document management services.

Table 1: Agreements
Year(s) Agreement Amount Attachment
2022-2025 Initial 3-year term $122,700 1
2024 First Amendment to
implement PAFs process
$137,820 2
2025 MCCi Acquisition $0 3
2025 Second Amendment
exercising first one-year
extension
$187,820 4
DISCUSSION:

Upon implementation, Laserfiche increased efficiency and transparency of the City’s document processes and facilitated information sharing between City departments. MCCi continues to be the best qualified partner to support the City’s Electronic Document Management System.

The proposed Third Amendment would exercise the final one-year extension renewal option, extending the term of the Agreement from August 15, 2026, to August 15, 2027. It would also increase the compensation by $38,777.90 to cover annual costs, the proposed increase to fixed fees and hourly rates (Table 2), an increase in professional user subscriptions, and increased cloud storage.

This would bring the total not-to-exceed amount to $226,597.90.

Item: 10
187

Table 2: Increase in Fees and Rates
Year Total Fees and
Rates
Percent Increase
2024-25 $34,900.00 -
2025-26 $36,470.00 4.5%
2026-27 $38,777.90 6.3%
MCCi had not increased its fees since 2020. Beginning in FY 2024-25, MCCi implemented annual pricing adjustments to better align its fees with current market rates and cloud compliance costs. As a result, the percentage increase reflected in the proposed Third Amendment is higher than would typically be expected, as MCCi is effectively bringing its pricing in line after several years without adjustments. The services provided by MCCi are critical to the City's day- to-day operations, and the proposed Third Amendment represents the final allowable one-year extension under the Agreement.

Vendor Performance Review
The chart below provides an overall summary of the consultant’s performance since the inception of the Agreement. During the term of the Agreement, MCCi has provided satisfactory performance of services, timeliness in response to staff inquiries, and overall customer service. The City’s Purchasing and Contracting Guidelines (“Guidelines”) allow for an extension based on performance.

Consistent with the Guidelines and upon performing a vendor assessment, staff recommend approval of the proposed Third Amendment to perform professional consulting services. The proposed Third Amendment was prepared by the City Clerk Department and approved by the City Attorney as to form.

Future Procurement
If the proposed Third Amendment is approved, the Agreement would expire August 15, 2027. Pursuant to the Agreement, the proposed Third Amendment would exercise the final one-year extension available under the original contract.

MCCi, LLC - Performance Review
August 16, 2022 – July 1, 2026
Category Unsatisfied – Very Satisfied
Performance of Scope of
Services
☐ Unsatisfied ☐ Satisfied ☒ Very Satisfied ☐ N/A
Timeliness ☐ Unsatisfied ☐ Satisfied ☒ Very Satisfied ☐ N/A Budget Performance ☐ Unsatisfied ☐ Satisfied ☒ Very Satisfied ☐ N/A Customer Service ☐ Unsatisfied ☐ Satisfied ☒ Very Satisfied ☐ N/A Item: 10
188

Accordingly, no additional extensions would remain. Prior to August 15, 2027, staff would initiate an RFP to procure electronic document management services.

FISCAL IMPACT:

There are sufficient funds in the Fiscal Year 2026-27 Operating Budget to cover the cost of the recommended action.

ATTACHMENTS:

1. Agreement with ECS

2. First Amendment with ECS

3. MCCi Acquisition Agreement

4. Second Amendment with ECS

5. Proposed Third Amendment with MCCi
Initiated By: Thy Merritt, City Clerk
Submitted By: Thy Merritt, City Clerk
Approved By: Debra Rose, City Manager
Item: 10
189

ATTACHMENT 1
Item: 10
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CITY OF LAKE FOREST

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

1. PARTIESAND DATE.

This Agreement is made and entered into this ___________________ day of 2022, 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 businessat 100 Civic Center Drive, Lake Forest, California, 92630 ("City") and ECSImaging, Inc., a Corporation of the State of California, with its principal place of businessat 5905 Brockton Ave., Ste C., Riverside, CA92506 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional Electronic Document Management System 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 Electronic Document Management System consulting servicesto 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 consulting servicesfor the Electronic Document Management System project (" Project") as set forth in this Agreement.

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 Electronic Document Management System consulting services necessary for the Project (" Services"). The Servic es 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.

3.1.2 Term. The term of this Agreement shall be from August 16, 2022 to August 15, 2025 unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two additional one- year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 16th
August
Item: 10
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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.

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 term inate 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: Laura Favreau.

3.2.5 City' s Representative. The City hereby designates Lisa Berglund, or 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.

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3.2.6 Consultant' s Representative. Consultant hereby designates Laura Favreau, 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 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, DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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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 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 DAMPis available on the internet at:
https:// media.ocgov.com/gov/pw/watersheds/documents/damp/default.asp A copy of the LIP is available on the internet at:
http://www.lakeforestca.gov/depts/pw/water/local_implementation_plan_%28lip%29.a sp
More information on the applicable WQMPis available on the internet at:
http://www.lakeforestca.gov/depts/pw/water/water_quality_management_plan_(wqmp).a sp
DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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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.

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 one hundred twenty two thousand, seven hundred dollars, ($ 122, 700. 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 DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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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 if 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, 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.

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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: ECS Imaging, Inc
5905 Brockton Ave., Ste C.

Riverside, CA 92506
ATTN: Laura Favreau
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 addressedto 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 DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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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 Servi ces 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 jurisdict ion, in which case the City shall 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 non- appealable 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 reasonable 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 DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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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.

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 DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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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 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.

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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.

CITY OF LAKE FOREST ECS IMAGING, INC.

By: By:

Robert Pequeño
Mayor
Debbi Bodewin
If Corporation, TWO SIGNATURES,
President OR Vice President AND
Secretary OR Treasurer REQUIRED]
ATTEST:

By:

Will Wolfe
By:

Lisa Berglund
City Clerk
APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney
DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6

CEO/ CBO
President
Item: 10
201

Exhibit “A”-1-
EXHIBIT " A"

SCOPE OF SERVICES
City of Lake Forest
Electronic Document Management System ( EDMS)
Software and Implementation
The City of Lake Forest intends to obtain the services ECSImaging Inc., to take full responsibility for the identification, implementation, training, and support of a new EDMS. The objective of this contract is to identify and implement an effective EDMSwhich is modernized and addressesthe long-term goals of the City to remain technologically current and apply innovative technologies, enhancing our organizational efficiency to better serve the community.

The system will be managed by the City Clerk and Assistant City Clerk.

Requirements of EDMSinclude:

Establisha relationship with a proven EDMSfirm with long-term viability.

Identify and implement an effective EDMScloud-based solution for the City of Lake Forest.

Create an enhanced user experience which is easily accessiblefor staff and the public.

Bifurcate portal accessinto a public and internal facing user interface. Ensure confidentiality of personal information where necessary.

Maintain current levels of functionality while striving to improve usage by integrating with other actively used software applications throughout the City wherever feasible.

Automate retention policies where appropriate for effective document management.

Automate or improve businessprocessesrelating to document redaction, retention scheduling, and indexing.

Complete a non-disruptive implementation with minimal downtime for users.

Extend the standardized use of an EDMSCity-wide across different departments and divisions to be able to capture, index, store, categorize, and retrieve documents.

Build and apply a collaborative training approach for effective training for all City users.

Establishdocument security and disaster recovery capabilities.

Coordinate with the City’s scanning service provider as necessarywith regards to file formatting needs.

Document management should support automated compliance with California Government Code and Regulations 22620.1 through 22620.8 associatedwith Trustworthy Electronic Document or RecordPreservation, and any other relevant statutory requirements.

Technical Specifications
ECSImaging must deliver to the City an EDMSsolution based on the following requirements.

1. Required Software Specifications
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Exhibit “A”-2-
The EDMSsystem must have:

Ability to import standard data file formats, as well as largescalemaps and plans, photographs, and video files. (PDF, DOCX, JPEG, PNG, BMP, etc.) Capability to view high-resolution oversized plan documents OCRfunctionality acrossall documents automatically
Boolean, metadata and full text searching
Customizablereporting capabilities, including the ability to export reports as both PDFand Microsoft documents (such as Excelor Word).

Clearly defined file categorization based on existing category areas.

Ability to publish documents to the City’s website for public access Ability to “pull” data to auto populate indexing/metadata values from other systems
Retention management per the City’s retention schedule
Security for confidential records, PersonallyIdentifiable Information. o Capability to differentiate public facing external versus internal documents on two mirrored portals.

2. User Control and Licensing
The recommended solution should have the ability to support a variety of users.

The recommended licensing model should support usage for all user types from software administration, contributors/ editors, search/retrieval (read only), etc. i. Provide an explanation on the software licensing model for the proposed solution (concurrent user or named specific user licensing).

3. System Architecture
The recommended solution should be a cloud-based solution with industry standard security measures for data storage alongside portal access.

4. Implementation and System Configuration
ECSImaging will be responsible for all software installation and configuration for the proposed solution with assistancefrom the City’s Information Technology personnel and contract staff. The selected firm will be responsible for providing all the necessary technical resources required for their product and the vendor will be responsible for installing operating system, database components and network connectivity. This includes all recommended system environments (development, test, production).

The firm will be required to completely configure the proposed software components.

This includes security integration ( with Active Directory/SSO) and system integration for conversion between systems. The selected firm will be responsible for fully testing the product as delivered and installed on the cloud, along with all testing for the solution and any associatedupdates to the server with clear guidance/directions for the City to be able to migrate into production with the assistanceof the firms team.

The firm will demonstrate that the installed and configured software meet all functional specifications provided in this document. All user acceptancetest plans will be developed jointly by the City and vendor to validate each component of the system being installed and configured along with validating all anticipated functionality is performing as expected.

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Exhibit “A”-3-
These user acceptancetest plans will be specific and detailed, clearly showing compliance with each requirement contained within this document and the firm’s response as well as shared with the selected firm after the firm’s design documentation is approved.

It is requested that the firm provide a high-level project implementation plan that identifies high level tasks and the required resources that will be performed by the firm.

Also outline tasks and resourcesthat will be requested of the City. The project plan should consider the implementation and configuration elements identified above.

5. Conversion/Migration of Existing Content
Conversion/migration of electronic files (e.g., documents, images, photos) from shared drives and existing EDMSinto the new system is required. Currently, the City utilizes ApplicationXtender Document Manager, version 16.6.150.0. At the time of this publication, there is a backlog of unscanned and scanned records to be entered into the EDMS.

All existing records shall be migrated. The final appearance, and quality of all records migrated shall remain in original form. Quality, proportion, resolution, color, formatting, proper orientation and angle, and all other data factors should remain consistent with the original files from legacy system.

File Categorization should remain consistent from previous EDMSsystem, unless otherwise decided during the implementation phase, and should also be easily identifiable and searchable.

System and/or consultant should be able to identify necessaryredaction of personal information of existing EDMSdocuments and records on a go-forward basis upon implementation.

Respondentsshould provide a narrative as to their approach to document conversion/migration and the specific responsibilities of the City to ensure a successful conversion.

Furthermore, a timeline shall be provided identifying the migration of existing records internal), versus public facing records (external) with accurate redactions.

Current City Document Inventory
Document Category Number of Items
Administrative 6, 027
City Council 27, 599
Development Services 137, 857
Finance 205
Human Resources 459
Planning Commission 4, 904
Public Works 17, 566
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Exhibit “A”-4-
GIS 16
Traffic & Parking Commission 222
Confidential Dev. Svcs 1
Redevelopment 1, 115
Community Svcs Commission 87
GRAND TOTAL 196, 058

6. Education and Training
The firm/ integrator must provide a training plan with the scope and length of proposed training for users and product/ hardware support staff. This training must be sufficient to enable the users to become proficient with the system in a short time period. Any training costs must be clearly described in the cost proposal. Training for the operation of the proposed system shall be included in the response along with any other expensesrelated to training. It is preferable that the training be performed on-site, but virtual training may be accommodated. The following topics, at a minimum, must be addressedduring the training:

System Administration:
o Detailed training for the assigned City system administrators and other software support functions are required. This training should be sufficient enabling the City’s support staff to perform all required daily, weekly, monthly, and ad-hoc support activities. In total, the city anticipates approximately 16 internal users requiring read and write ability and a 2-sided portal. One for all internal staff (currently 76), and the second for members of the public.
o If feasible, software should support single sign on with Microsoft Active Directory.

Technology Basics:
o These basicsshould include what EDMSis, how it functions from a user perspective, the various components used, etc.

User Controls:
o This portion of the training should include detailed information on user accessto each application/function, what each application/function is used for, how to use each application/function, which applications/functions to accessin what order, etc
Security Maintenance Training:
o This level of training should include detail associatedwith how the security models are planned and configured in addition to procedures that should be followed by the City as updates to the security model are required DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
205

Exhibit “A”-5-
Error Handling:
o The error-handling portion of the training should include descriptive information as to the various error messagesthat can be received by the users during daily operation. This training should be sufficient so the user can resolve what was entered incorrectly, performed improperly, or what process needs to be performed.

7. System Maintenance/Support:

The firm will be required to provide technical support for the installed/configured solution.

The City will have primary and backup technical resources responsible for day-to-day system administration and troubleshooting with the users.

These technical support resources will be trained by the firm/ integrator on all product solution administrative functions necessaryfor the City’s project to be successfully supported and maintained after successfuldeployment into production. It is anticipated that there will be a total of five trained staff members for this aspect of implementation. The product/ solution related technical training should enable the City staff to manage ongoing workload, be able to identify issuesfor firm support resolution, and support end-users using the product/ solution.

Pleasedescribe in detail your technical support hours and service level agreements. Support hours are expected to be during city regular hours of operation at a minimum. Response times and error tickets should be addressedby end of businessday from date of original request (preferably via email). Also include support protocols for any 3rd party firms that are recommended for the proposed solution. The firm/ integrator will provide information on the following items:

Software Problem Isolation Identification Procedures
How New Software is Releasedand Installed
If Third-Party Software is Used, Information describing Third-Party Software Support.

Software as a Service Requirements
Laserfiche Cloud Professional Tier includes: Direct Share, Data Encryption at Rest, Autoscaling, Automated & Encrypted Backups, Intrusion Detection, Automated Feature & Security Updates, Automated Text Extraction, Import Agent with Email Archive, Starter Audit Trail+, Workflow & Forms Process Automation, Connector, Surveys, 1 Workflow Bot, 10 Quick Fields Complete w/Agent. Integrations with MS Office, SharePoint, Teams, MS Dynamics 365 & Redtail. 50, 000 RESTful web API calls/ month.

ECS Imaging Contract includes Turnkey implementation, Weblink Public Portal Design Setup, Consulting, Training and Conversion services from ApXtender 196, 058 documents as listed in the Current City Document Inventory. 5 CPP online Courses included toward Gold Certification for one user or equivalent value. Weblink Public Portal of 10,000 Views/ month with the ability to decrease to 1,000 if requested.

Contract includes then hours of ECS Gold Priority Support, with the ability to contract for DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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Exhibit “A”-6-
additional hours of support as needed within the limitations of Exhibit C.

Gold Annual Priority Remote or Onsite Support Contract Includes:

Hardware Return Policy: Unopened boxed hardware may be exchanged for a full cash or credit refund within 7 days - a 15% restocking fee may apply. Defective hardware will be exchanged for a replacement per the terms and conditions specified on the product warranty card.

Maximum 4 Hour Response Time - Upgraded from 24 hours with traditional LSAP support Live Hours of support are 7:30am - 5:00pm PST M-F Unlimited Phone and E-mail Support
On- site time is calculated to the nearest half hour and minimum onsite calculation is between 2-8 hours depending on the location
On- site time can be used for remedial training, installing updates, and consulting, in addition to support ECS may allow planned after hours support in rare circumstances.

In these circumstances
Two free admissions to the ECS Annual Customer Conference along with Free Admission to Quarterly User Groups
Monthly E-Newsletter
On- site/ remote support hours included as quoted. On- site within next business day as needed. Additional hours of support purchased at a discounted hourly rate. Customers not under this plan can purchase on-site hours at $ 250/ hour with a 1 hour minimum for remote support, and an 8 hour minimum onsite charge in addition to travel expenses.

Software & Maintenance billed 100% at project start.

Services billed 50% up front minimally w/ remaining Services as incurred.

Standard Processing fee added to credit card payments
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BB&K 2019)
55136.00200\31918793.1
Exhibit “B”-1
EXHIBIT " B" SCHEDULE OF SERVICES
Consultant shall provide the services described in Exhibit “A” Scopeof Servicesas directed by the City.

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BB&K 2019)
55136.00200\31918793.1
Exhibit “C”-1
EXHIBIT " C"

COMPENSATION
Consultant shall be paid for services rendered in accordancewith Section 3.3 of the Agreement and as described under Exhibit “A” Scopeof Services, the not to exceed amount of one hundred twenty two thousand, seven hundred dollars, $122,700.00 is based on the following rates:

Task/Description Year 1 Cost Year 2 Cost Year 3 Cost
Laserfiche PFCloud Professional
Users (5-49) $ 13,280.00 $ 13,280.00 $ 13,280.00
Laserfiche PFCloud Participant
Users (10-199) $ 9,120.00 $ 9,120.00 $ 9,120.00
Laserfiche PFCloud Weblink Public
Portal
Option to Reduceat City’s Request
10k views per
month
4,200
10k views per
month
4,200
10k views per
month
4,200
ECSGOLDPriority Support $ 175.00 per Hour
Option to purchase
hours as needed
175.00 per Hour
Option to purchase
hours as needed
175.00 per Hour
Option to purchase
hours as needed
1stYear Discount ($ 3,750.00) - -
Laserfiche Vault $ 3,000 $ 3,000 $ 3,000
ECSTurnkey Project Identified in
Scopeof Work Exhibit A
18,900.00 - -
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-Riverside-Orange Counties.

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BB&K 2019)
55136.00200\31918793.1
Exhibit “D”-1
EXHIBIT “ D”

INSURANCE REQUIREMENTS

3.2.11 Insurance.

3.2.11.1 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.

3.2.11.2 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. If Consultant does not own any company vehicles or may not be able to purchase a Business Automobile Insurance Policy, the requirement may be satisfied by providing either of the following: ( 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.

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BB&K 2019)
55136.00200\31918793.1
Exhibit “D”-2

3.2.11.3 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:
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:

C) 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.

3.2.11.4 Professional Liability ( Errors & Omissions):

A) 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) 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.

3.2.11.5 Workers' Compensation:

A) 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) 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.

3.2.11.6 Primary and Non- Contributing Insurance. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self- insurance maintained by the City, its officials, officers, employees, DocuSign Envelope ID: 900B1EA8- 1B4D- 4C98- 9A4C- 3AB0DE8296E6 Item: 10
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BB&K 2019)
55136.00200\31918793.1
Exhibit “D”-3
agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.2.11.7 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.

3.2.11.8 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.

3.2.11.9 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.

3.2.11.10 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.

3.2.11.11 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.

3.2.11.12 Enforcement of Agreement 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.

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BB&K 2019)
55136.00200\31918793.1
Exhibit “D”-4

3.2.11.13 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.

3.2.11.14 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.

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ATTACHMENT 2
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ELECTRONIC DOCUMENT MANAGEMENT SYSTEM
2022- 073. 1)
City of Lake Forest
100 Civic Center Dr.

Lake Forest, CA 92630
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City of Lake Forest
First Amendment to Agreement for Professional Consultant Services Electronic Document Management System
I. PARTIES AND DATE. ..............................................................................

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

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

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

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

VI. EXHIBIT " C" - COMPENSATION ..............................................................

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Title: Electronic Document Management System
3 1. PARTIES AND DATE.

This First Amendment to the Agreement for Professional Consultant Services (" First Amendment") is 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 ECS Imaging, Inc., a California Corporation ( Inc.) , with its principal place of business at 5905 Brockton Ave Suite C, Riverside, CA 92506 (“ Consultant”). City and Consultant are sometimes individually referred to herein as Party” and collectively as “Parties.”
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Item: 10
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Title: Electronic Document Management System
4 2. RECITALS.

2. 1. Agreement
The Parties entered into that certain Agreement for Professional Electronic Document Management System Consulting Services dated August 16, 2022 (“ Agreement”).

2. 2. First Amendment
The Parties now desire to amend the Agreement in order to expand the scope of services and increase total amount of compensation under the Agreement.

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Title: Electronic Document Management System
5 3. TERMS.

3. 1. Compensation.

Section 3. 3. 1 of the Agreement is hereby amended in its entirety to read as follows:

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 ONE HUNDRED THIRTY- SEVEN THOUSAND EIGHT HUNDRED TWENTY DOLLARS ($ 137, 820. 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. 2. Scope of Services.

The Scope of Services as set forth in Exhibit “ A” of the Agreement is hereby amended to include the Services set forth in EXHIBIT " A" SCOPE OF SERVICES to this Amendment, attached hereto and incorporated herein.

3. 3. Extra Work.

The Scope of Services as set forth in Exhibit “ A” of the Agreement is hereby amended to include the Services set forth in EXHIBIT " A" SCOPE OF SERVICES to this Amendment, attached hereto and incorporated herein.

3. 4. Remaining Provisions of Agreement.

Except as otherwise specifically set forth in this First Amendment, the remaining provisions of the Agreement shall remain in full force and effect.

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Title: Electronic Document Management System
6 4. SIGNATURES.

4. 1. SIGNATURES.

CITY OF LAKE FOREST ECS Imaging, Inc.

By: [ AUTHORIZED CITY SIGNATURE]
Mark Tettemer
Mayor
By: [ VENDOR SIGNATURE 1]
Will Wolf
President
If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
ATTEST:

By: [ CITY CLERK SIGNATURE]
Lisa Berglund
City Clerk
By: [ VENDOR SIGNATURE 2]
Debbi Bodewin
General Partner ( Limited Partnership)
APPROVED AS TO FORM:

By: [ CITY ATTORNEY SIGNATURE]
Best Best & Krieger LLP
City Attorney
CONTRACT ADMINISTRATOR APPROVAL]
PROJECT MANAGER APPROVAL]
CITY CLERK - INSURANCE APPROVAL]
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Title: Electronic Document Management System
7 5. EXHIBIT " A" SCOPE OF SERVICES

5. 1. EXHIBIT " A" SCOPE OF SERVICES
Consultant shall provide the following Professional Electronic Document Management System Consulting Services professional consulting services relative to the City' s Electronic Document Management System project.

City of Lake Forest
Electronic Document Management System ( EDMS) Software and Implementation The City of Lake Forest intends to obtain the services ECS Imaging Inc., to take full responsibility for the identification, implementation, training, and support of a new EDMS. The objective of this contract is to identify and implement an effective EDMS which is modernized and addresses the long- term goals of the City to remain technologically current and apply innovative technologies, enhancing our organizational efficiency to better serve the community. The system will be managed by the City Clerk and Assistant City Clerk.

Requirements of EDMS include:

Establish a relationship with a proven EDMS firm with long- term viability.

Identify and implement an effective EDMS cloud- based solution for the City of Lake Forest.

Create an enhanced user experience which is easily accessible for staff and the public.

Bifurcate portal access into a public and internal facing user interface. Ensure confidentiality of personal information where necessary.

Maintain current levels of functionality while striving to improve usage by integrating with other actively used software applications throughout the City wherever feasible.

Automate retention policies where appropriate for effective document management.

Automate or improve business processes relating to document redaction, retention scheduling, and indexing.

Complete a non- disruptive implementation with minimal downtime for users.

Extend the standardized use of an EDMS City- wide across different departments and divisions to be able to capture, index, store, categorize, and retrieve documents.

Build and apply a collaborative training approach for effective training for all City users.

Establish document security and disaster recovery capabilities.

Coordinate with the City’ s scanning service provider as necessary with regards to file formatting needs.

Document management should support automated compliance with California Government Code and Regulations 22620. 1 through 22620. 8 associated with Trustworthy Electronic Document or Record Preservation, and any other relevant statutory requirements.

Technical Specifications
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Title: Electronic Document Management System
8 ECS Imaging must deliver to the City an EDMS solution based on the following requirements.

1. Required Software Specifications
The EDMS system must have:

Ability to import standard data file formats, as well as largescale maps and plans, photographs, and video files. ( PDF, DOCX, JPEG, PNG, BMP, etc.) Capability to view high- resolution oversized plan documents OCR functionality across all documents automatically
Boolean, metadata and full text searching
Customizable reporting capabilities, including the ability to export reports as both PDF and Microsoft documents ( such as Excel or Word).

Clearly defined file categorization based on existing category areas.

Ability to publish documents to the City’ s website for public access Ability to “ pull” data to auto populate indexing/ metadata values from other systems Retention management per the City’ s retention schedule Security for confidential records, Personally Identifiable Information. o Capability to differentiate public facing external versus internal documents on two mirrored portals.

2. User Control and Licensing
The recommended solution should have the ability to support a variety of users. The recommended licensing model should support usage for all user types from software administration, contributors/ editors, search/ retrieval ( read only), etc. o Provide an explanation on the software licensing model for the proposed solution concurrent user or named specific user licensing).

3. System Architecture
The recommended solution should be a cloud- based solution with industry standard security measures for data storage alongside portal access.

4. Implementation and System Configuration
ECS Imaging will be responsible for all software installation and configuration for the proposed solution with assistance from the City’ s Information Technology personnel and contract staff.

The selected firm will be responsible for providing all the necessary technical resources required for their product and the vendor will be responsible for installing operating system, database components and network connectivity. This includes all recommended system environments development, test, production). The firm will be required to completely configure the proposed software components. This includes security integration ( with Active Directory/ SSO) and system integration for conversion between systems. The selected firm will be responsible for fully testing the product as delivered and installed on the cloud, along with all testing for the solution DocuSign Envelope ID: 7AFF3394- E1E1- 4ABD- 8873- D3E5917F3A16 Item: 10
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Title: Electronic Document Management System
9 and any associated updates to the server with clear guidance/ directions for the City to be able to migrate into production with the assistance of the firms team.

The firm will demonstrate that the installed and configured software meet all functional specifications provided in this document. All user acceptance test plans will be developed jointly by the City and vendor to validate each component of the system being installed and configured along with validating all anticipated functionality is performing as expected.

These user acceptance test plans will be specific and detailed, clearly showing compliance with each requirement contained within this document and the firm’ s response as well as shared with the selected firm after the firm’ s design documentation is approved.

It is requested that the firm provide a high- level project implementation plan that identifies high level tasks and the required resources that will be performed by the firm. Also outline tasks and resources that will be requested of the City. The project plan should consider the implementation and configuration elements identified above.

5. Conversion/ Migration of Existing Content
Conversion/ migration of electronic files ( e. g., documents, images, photos) from shared drives and existing EDMS into the new system is required. Currently, the City utilizes ApplicationXtender Document Manager, version 16. 6. 150. 0. At the time of this publication, there is a backlog of unscanned and scanned records to be entered into the EDMS.

All existing records shall be migrated. The final appearance, and quality of all records migrated shall remain in original form. Quality, proportion, resolution, color, formatting, proper orientation and angle, and all other data factors should remain consistent with the original files from legacy system.

File Categorization should remain consistent from previous EDMS system, unless otherwise decided during the implementation phase, and should also be easily identifiable and searchable.

System and/ or consultant should be able to identify necessary redaction of personal information of existing EDMS documents and records on a go- forward basis upon implementation.

Respondents should provide a narrative as to their approach to document conversion/ migration and the specific responsibilities of the City to ensure a successful conversion.

Furthermore, a timeline shall be provided identifying the migration of existing records ( internal), versus public facing records ( external) with accurate redactions.

Current City Document Inventory
Document Category Number of Items
Administrative 6, 027
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Title: Electronic Document Management System
10 City Council 27, 599
Development Services 137, 857
Finance 205
Human Resources 459
Planning Commission 4, 904
Public Works 17, 566
GIS 16
Traffic & Parking Commission 222
Confidential Dev. Svcs 1
Redevelopment 1, 115
Community Svcs Commission 87
GRAND TOTAL 196, 058

6. Education and Training
The firm/ integrator must provide a training plan with the scope and length of proposed training for users and product/ hardware support staff. This training must be sufficient to enable the users to become proficient with the system in a short time period. Any training costs must be clearly described in the cost proposal. Training for the operation of the proposed system shall be included in the response along with any other expenses related to training. It is preferable that the training be performed on- site, but virtual training may be accommodated. The following topics, at a minimum, must be addressed during the training:

System Administration:
o Detailed training for the assigned City system administrators and other software support functions are required. This training should be sufficient enabling the City’ s support staff to perform all required daily, weekly, monthly, and ad- hoc support activities. In total, the city anticipates approximately 16 internal users requiring read and write ability and a 2- sided portal. One for all internal staff ( currently 76), and the second for members of the public.
o If feasible, software should support single sign on with Microsoft Active Directory.

Technology Basics:
o These basics should include what EDMS is, how it functions from a user perspective, the various components used, etc.

User Controls:
o This portion of the training should include detailed information on user access to each application/ function, what each application/ function is used for, how to use each application/ function, which applications/ functions to access in what order, etc Security Maintenance Training:
o This level of training should include detail associated with how the security models are planned and configured in addition to procedures that should be followed by the City as updates to the security model are required
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Title: Electronic Document Management System
11 Error Handling:
o The error- handling portion of the training should include descriptive information as to the various error messages that can be received by the users during daily operation. This training should be sufficient so the user can resolve what was entered incorrectly, performed improperly, or what process needs to be performed.

7. System Maintenance/ Support:

The firm will be required to provide technical support for the installed/ configured solution. The City will have primary and backup technical resources responsible for day- to- day system administration and troubleshooting with the users.

These technical support resources will be trained by the firm/ integrator on all product solution administrative functions necessary for the City’ s project to be successfully supported and maintained after successful deployment into production. It is anticipated that there will be a total of five trained staff members for this aspect of implementation. The product/ solution related technical training should enable the City staff to manage ongoing workload, be able to identify issues for firm support resolution, and support end- users using the product/ solution.

Please describe in detail your technical support hours and service level agreements. Support hours are expected to be during city regular hours of operation at a minimum. Response times and error tickets should be addressed by end of business day from date of original request ( preferably via email). Also include support protocols for any 3rd party firms that are recommended for the proposed solution. The firm/ integrator will provide information on the following items:

Software Problem Isolation Identification Procedures
How New Software is Released and Installed
If Third- Party Software is Used, Information describing Third- Party Software Support.

Software as a Service Requirements
Laserfiche Cloud Professional Tier includes: Direct Share, Data Encryption at Rest, Autoscaling, Automated & Encrypted Backups, Intrusion Detection, Automated Feature & Security Updates, Automated Text Extraction, Import Agent with Email Archive, Starter Audit Trail+, Workflow & Forms Process Automation, Connector, Surveys, 1 Workflow Bot, 10 Quick Fields Complete w/ Agent.

Integrations with MS Office, SharePoint, Teams, MS Dynamics 365 & Redtail. 50, 000 RESTful web API calls/ month.

ECS Imaging Contract includes Turnkey implementation, Weblink Public Portal Design Setup, Consulting, Training and Conversion services from ApXtender 196, 058 documents as listed in the Current City Document Inventory. 5 CPP online Courses included toward Gold Certification for one user or equivalent value. Weblink Public Portal of 10, 000 Views/ month with the ability to decrease to 1, 000 if requested.

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Title: Electronic Document Management System
12 Contract includes then hours of ECS Gold Priority Support, with the ability to contract for additional hours of support as needed within the limitations of Exhibit C.

Gold Annual Priority Remote or Onsite Support Contract Includes:

Hardware Return Policy: Unopened boxed hardware may be exchanged for a full cash or credit refund within 7 days - a 15% restocking fee may apply. Defective hardware will be exchanged for a replacement per the terms and conditions specified on the product warranty card.

Maximum 4 Hour Response Time - Upgraded from 24 hours with traditional LSAP support Live Hours of support are 7: 30am - 5: 00pm PST M- F
Unlimited Phone and E-mail Support
On- site time is calculated to the nearest half hour and minimum onsite calculation is between 2- 8 hours depending on the location
On- site time can be used for remedial training, installing updates, and consulting, in addition to support ECS may allow planned after hours support in rare circumstances. In these circumstances
Two free admissions to the ECS Annual Customer Conference along with Free Admission to Quarterly User Groups
Monthly E-Newsletter
On- site/ remote support hours included as quoted. On- site within next business day as needed.

Additional hours of support purchased at a discounted hourly rate. Customers not under this plan can purchase on- site hours at $ 250/ hour with a 1 hour minimum for remote support, and an 8 hour minimum onsite charge in addition to travel expenses.

Software & Maintenance billed 100% at project start.

Services billed 50% up front minimally w/ remaining Services as incurred.

Standard Processing fee added to credit card payments
First Amendment
PAF Digitization Scope of Services Project Objectives:

This project will digitize the Personnel Action Forms ( PAF) for Separation and New/ Change processes.

The integration includes automated workflows, digital signatures, and dynamic form functionalities using Laserfiche. Additionally, the project involves Business Analysis Consulting to develop efficient workflows and design the forms and their processes for optimal efficiency.

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Title: Electronic Document Management System
13 Detail Scope of the Services:

A. Business Analysis Consulting sessions will create efficient workflows and design the forms and their automated processes in Laserfiche.
o Analyzing current workflows and approval processes.
o Assessing resource allocation to enhance the City' s efficiency and productivity.

B. PAF Form Development
o PAF Separation Form:

Development of a digital form containing all necessary fields for separation details.

Implementation of approval routing through the Department, HR, Finance, and City Manager, utilizing Laserfiche.
o PAF New/ Change Form features will include:

Dynamic fields that adjust based on the selected change type.

Auto- population of employee information via database lookup.

Dynamic approval routing through the Department, HR, Finance, and City Manager.

Management of approvers through team building for each department or a maintenance- free spreadsheet lookup method.

Coverage of 9 change types and 2 optional items, such as full- time, part- time, and salary changes, with relevant fields becoming required based on selections.

C. Workflow Automation
o Design and implementation of automation for notifications, escalations, and tracking of approval statuses in Laserfiche.
o Comprehensive testing and validation, including User Acceptance Testing ( UAT) with key stakeholders to ensure all requirements are met.

D. Digital Signatures Integration
o Integration of Laserfiche digital signatures for the approval processes on both the PAF Separation and PAF New/ Change Forms.

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Title: Electronic Document Management System
14 6. EXHIBIT " C" - COMPENSATION

6. 1. EXHIBIT " C" - 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 ONE HUNDRED THIRTY- SEVEN THOUSAND EIGHT HUNDRED TWENTY DOLLARS ($ 137, 820. 00) is based on the following rates:

Task/ Description Year 1 Cost Year 2 Cost Year 3 Cost
Laserfiche PF Cloud Professional Users ( 5-
49)
13, 280. 00 $ 13, 280. 00 $ 13, 280. 00
Laserfiche PF Cloud Participant Users ( 10-
199)
9, 120. 00 $ 9, 120. 00 $ 9, 120. 00
Laserfiche PF Cloud Weblink Public Portal
Option to Reduce at City’s Request
10k views per
month
4, 200
10k views per
month
4, 200
10k views per
month
4, 200
ECS GOLD Priority Support $ 175. 00 per Hour
Option to
purchase
hours as needed
175. 00 per Hour
Option to
purchase
hours as needed
175. 00 per Hour
Option to
purchase
hours as needed
1st Year Discount ($ 3, 750. 00) - -
Laserfiche Vault $ 3, 000 $ 3, 000 $ 3, 000
ECS Turnkey Project Identified in
Scope of Work Exhibit A
18, 900. 00 - -
Original Compensation $ 122, 700. 00
PAF Digitization - - $ 15, 120. 00
First Amendment Total Compensation: $ 137, 820. 00
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- Riverside- Orange Counties.

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ATTACHMENT 3
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CONSENT TO ASSIGNMENT
by and among
MCCi, L.L.C.
and
ECS Imaging, Inc.
and
City of Lake Forest
This Consent to Assignment (" Consent Agreement") is dated May 1, 2025, by and among ECS Imaging, Inc.

ECS"), MCCi, LLC (" MCCi"), and City of Lake Forest (" Client"), ( each a " Party," and collectively, the Parties") in connection with the assignment of Professional Consultant Services ( the " Master Agreement").

As some background, ECS and Client are parties to the Master Agreement ( the " Assigned Agreement"); ECS and MCCI joined forces and now together operate under the MCCi legal entity; ECS plans to assign to and MCCi will assume the Assigned Agreement, including ECS's rights and responsibilitiesunder it ( the " Assignment"); and
With that in mind, the parties agree as follows:

1. Consistent with the terms and conditions of the Assigned Agreement, Client irrevocably consents to the assignment of the Assigned Agreement from ECS to MCCi.

2. Should the term of the Master Agreement expire, or if it already has expired, while there is any active underlying order, annual support term ( which may also renew upon Client making payment), and similar documents (" Active SOW(s)") then the term of such document, and terms and conditions specific to the then active services shall continue to apply to such Active SOW(s) until terminated or expired.

3. If you have any questions or wish to provide either ECS or MCCi with notice, please use the contact details below:

ECS MCCi
ECS Imaging, Inc MCCi LLC
Attention: Debbi Bodewin Attention: Legal Department
5905 Brockton Ave Suite C, 3717 Apalachee Pkwy # 201
Riverside, CA 92506 Tallahassee, FL 32311
dcbbi'ecsimaging.com legalgmccinnovations.com

4. This Agreement can be signed in counterparts and electronically binds and benefits each party and their successors.

5. All terms of the Master Agreement ( and underlying order, support, and similar documents) remain in full effect and unmodified except as set forth above. To the extent there are any conflicts between this Consent Agreement and the Assigned Agreement, including any appendices, the Assigned Agreement, including appendices, shall prevail.

REMAINDER OF PAGE INTENTIONALLY BLANK
1/2
Item: 10
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The Client agrees to the terms of this Consent Agreement by signing the below.

Client: City of Lake Forest
By: " Y vY AcTING cart' CLEF - K 5/l4 / 2s
Signature Title Date
Printed name of signer: Twit Meg 4 TT
Item: 10
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ATTACHMENT 4
Item: 10
232

ELECTRONIC DOCUMENT MANAGEMENT SYSTEM
2022- 073. 2)
City of Lake Forest
100 Civic Center Dr.

Lake Forest, CA 92630
Docusign Envelope ID: FCCCDBA3- 1253- 4A08- 8B0B- E64298DFE632 Item: 10
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City of Lake Forest
Second Amendment to Professional Consultant Services Agreement Electronic Document Management System
I. PARTIES AND DATE. ..............................................................................

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

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

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

V. EXHIBIT " C" - COMPENSATION ..............................................................

Docusign Envelope ID: FCCCDBA3- 1253- 4A08- 8B0B- E64298DFE632 Item: 10
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Title: Electronic Document Management System
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 ECS Imaging, Inc., a California Corporation ( Inc.) , with its principal place of business at 5905 Brockton Ave Suite C, Riverside, CA 92506 (“ Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” Docusign Envelope ID: FCCCDBA3- 1253- 4A08- 8B0B- E64298DFE632 July1st
2025
Item: 10
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Title: Electronic Document Management System
4 2. RECITALS.

2. 1. Agreement
The Parties entered into that certain Agreement for Professional Electronic Document Management System Consulting Services dated August 16, 2022 (“ Agreement”).

2. 2. First Amendment
The Parties entered into that certain First Amendment to the Agreement dated June 26, 2024 (" First Amendment").

2. 3. Second Amendment
The Parties now desire to amend the Agreement in order to extend the term of the Agreement and increase the total amount of compensation under the Agreement.

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Title: Electronic Document Management System
5 3. TERMS.

3. 1. Term.

Section 3. 1. 2 of the Agreement is hereby amended in its entirety to read as follows:

The term of this Agreement shall be from August 16, 2022 to August 15, 2026, 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 one ( 1) 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. Compensation.

Section 3. 3. 1 of the Agreement is hereby amended in its entirety to read as follows:

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 ONE HUNDRED EIGHTY- SEVEN THOUSAND EIGHT HUNDRED TWENTY DOLLARS ($ 187, 820. 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. Remaining Provisions of Agreement.

Except as otherwise specifically set forth in this Second Amendment, the remaining provisions of the Agreement shall remain in full force and effect.

Docusign Envelope ID: FCCCDBA3- 1253- 4A08- 8B0B- E64298DFE632 Item: 10
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Title: Electronic Document Management System
6 4. SIGNATURES.

4. 1. SIGNATURES.

CITY OF LAKE FOREST ECS Imaging, Inc.

By: [ AUTHORIZED CITY SIGNATURE]
Scott Voigts
Mayor
By: [ VENDOR SIGNATURE 1]
Donny Barstow
CEO
If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
ATTEST:

By: [ CITY CLERK SIGNATURE]
Thy Merritt
Acting City Clerk
By: [ VENDOR SIGNATURE 2]
Victor D’Aurio
COO
APPROVED AS TO FORM:

By: [ CITY ATTORNEY SIGNATURE]
Best Best & Krieger LLP
City Attorney
CONTRACT ADMINISTRATOR APPROVAL]
PROJECT MANAGER APPROVAL]
CITY CLERK - INSURANCE APPROVAL]
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Title: Electronic Document Management System
7 5. EXHIBIT " C" - COMPENSATION

5. 1. EXHIBIT " C" - 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 ONE HUNDRED EIGHTY- SEVEN THOUSAND EIGHT HUNDRED TWENTY DOLLARS ($ 187, 820. 00) is based on the following rates:

Task/ Description Year 1 Cost Year 2 Cost Year 3 Cost Year 4 Cost Laserfiche PF Cloud Professional
Users ( 5- 49)
13, 280. 00 $ 13, 280. 00 $ 13, 280. 00 $ 13, 280. 00
Laserfiche PF Cloud Participant
Users ( 10- 199)
9, 120. 00 $ 9, 120. 00 $ 9, 120. 00 $ 9, 120. 00
Laserfiche PF Cloud Weblink Public
Portal
Option to Reduce at City' s Request
10k views per
month
4, 200
10k views per
month
4, 200
10k views per
month
4, 200
10k views per
month
4, 200
ECS GOLD Priority Support $ 175. 00 per
Hour
Option to
purchase
hours as
needed
175. 00 per
Hour
Option to
purchase
hours as
needed
175. 00 per
Hour
Option to
purchase
hours as
needed
175. 00 per
Hour
Option to
purchase
hours as
needed
1st Year Discount ($ 3, 750. 00) - - -
Laserfiche Vault $ 3, 000 $ 3, 000 $ 3, 000 $ 3, 000
ECS Turnkey Project Identified in
Scope of Work Exhibit A
18, 900. 00 - - -
PAF Digitization - - $ 15, 120. 00 -
Second Amendment Total Compensation: $ 187, 820. 00
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- Riverside- Orange Counties.

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ATTACHMENT 5
Item: 10
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ELECTRONIC DOCUMENT MANAGEMENT SYSTEM
(2022-073.3)

City of Lake Forest
100 Civic Center Dr.

Lake Forest, CA 92630

Docusign Envelope ID: 68004A4C-F49D-8CC4-81D6-6A6E5731B544 Item: 10
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City of Lake Forest
Third Amendment to Professional Consultant Services Agreement Electronic Document Management System
I. PARTIES AND DATE. ................................ ................................ ..............

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

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

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

V. EXHIBIT "C" - COMPENSATION ................................ ..............................

Docusign Envelope ID: 68004A4C-F49D-8CC4-81D6-6A6E5731B544 Item: 10
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Title: Electronic Document Management System
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 MCCi, LLC, a Florida Limited Liability Company (LLC), with its principal place of business at 3717 Apalachee Pkwy #201, Tallahasee, FL 32311 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” Docusign Envelope ID: 68004A4C-F49D-8CC4-81D6-6A6E5731B544 Item: 10
243

Title: Electronic Document Management System
4 2. RECITALS.

2.1. Agreement
The Parties entered into that certain Agreement for Professional Electronic Document Management System Consulting Services dated August 16, 2022 (“Agreement”).

2.2. First Amendment
The Parties entered into that certain First Amendment to the Agreement dated June 26, 2024 ("First Amendment").

2.3. Second Amendment
The Parties entered into that certain Second Amendment to the Agreement dated July 1, 2025 ("Second Amendment").

2.4. Third Amendment
The Parties now desire to amend the Agreement in order to acknowledge the corporate transition from ECS Imaging, Inc. ("ECS") to MCCi, LLC ("MCCi"), update the delivery of notices, extend the term of the Agreement, and increase the total amount of compensation under the Agreement.

Docusign Envelope ID: 68004A4C-F49D-8CC4-81D6-6A6E5731B544 Item: 10
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Title: Electronic Document Management System
5 3. TERMS.

3.1. Term.

Section 3.1.2 of the Agreement is hereby amended in its entirety to read as follows:

The term of this Agreement shall be from August 16, 2022 to August 15, 2027, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.

3.2. Compensation.

Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows:

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 TWO HUNDRED TWENTY-SIX THOUSAND FIVE HUNDRED NINTY SEVEN DOLLARS AND NINTY CENTS ($226,597.90) 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. Delivery of Notices.

Section 3.6.1.4 of the Agreement is hereby amended as follows:

Consultant: MCCi, LLC
3717 Apalachee Pkwy #201
Tallahasee, FL 32311
ATTN: Legal Department

3.4. Remaining Provisions of Agreement.

Except as otherwise specifically set forth in this Third Amendment, the remaining provisions of the Agreement shall remain in full force and effect.

Docusign Envelope ID: 68004A4C-F49D-8CC4-81D6-6A6E5731B544 Item: 10
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Title: Electronic Document Management System
6 4. SIGNATURES.

4.1. SIGNATURES.

CITY OF LAKE FOREST MCCi, LLC
By: [AUTHORIZED CITY SIGNATURE]

Robert Pequeño
Mayor
By: [VENDOR SIGNATURE 1]

Donny Barstow
CEO
[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]

Victor D'Aurio
COO (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: 68004A4C-F49D-8CC4-81D6-6A6E5731B544 Item: 10
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Title: Electronic Document Management System
7 5. EXHIBIT "C" - COMPENSATION

5.1. EXHIBIT "C" - 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 TWO HUNDRED TWENTY-SIX THOUSAND FIVE HUNDRED NINTY SEVEN DOLLARS AND NINTY CENTS ($226,597.90) is based on the following rates:

Task/Description Year 1 Cost Year 2 Cost Year 3 Cost Year 4 Cost Year 5 Cost Laserfiche PF Cloud
Professional Users (5-49)
$13,280.00 $13,280.00 $13,280.00 $13,280.00 $14,920.08
Laserfiche PF Cloud
Participant Users (10-
199)
$9,120.00 $9,120.00 $9,120.00 $9,120.00 $10,246.32
Laserfiche PF Cloud
Weblink Public Portal
10k views
per
month
$4,200
10k views
per
month
$4,200
10k views
per
month
$4,200
10k views
per
month
$4,200
120k views
per
month
$4,718.70
ECS GOLD Priority
Support
$175.00 per
Hour
Option to
purchase
hours as
needed
$175.00 per
Hour
Option to
purchase
hours as
needed
$175.00 per
Hour
Option to
purchase
hours as
needed
$175.00 per
Hour
Option to
purchase
hours as
needed
$175.00 per
Hour
Option to
purchase
hours as
needed
1st Year Discount ($3,750.00) - - - -
Laserfiche Vault $3,000 $3,000 $3,000 $3,000 $3,000
ECS Turnkey Project $18,900.00 - - - -
PAF Digitization - - $15,120.00 - -
Laserfiche Cloud Storage
(100 GB) Subscription
$5,392.80
Third Amendment Total Compensation: $226,597.90

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.

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CITY COUNCIL AGENDA REPORT
MEETING DATE: 07/21/2026
DEPARTMENT: City Manager
SUBJECT:

AWARD OF CONTRACT FOR AFFORDABLE HOUSING CONSULTANT

SERVICES
RECOMMENDED ACTION(S):

1. Award a Professional Consultant Services Agreement for Affordable Housing Consultant Services in the amount of $213,615 to RSG, Inc.

2. Authorize the Mayor to sign, and the City Clerk to attest, the award of contract to RSG, Inc. substantially in the form attached.

EXECUTIVE SUMMARY:

The Lake Forest Housing Authority (“Authority”), City Council, and Housing Division are responsible for overseeing affordable housing activities and implementing adopted goals of the City of Lake Forest (“City”) and the former Lake Forest Redevelopment Agency (“Agency”), as identified in the City’s Housing Element and Five-Year Community Development Block Grant (“CDBG”) Consolidated Plan. The City utilizes a professional consultant, RSG, Inc. (“RSG”), to provide affordable housing consulting services, including annual compliance monitoring of affordable housing developments, preparation of required Authority and Agency housing reports, administration of affordable housing programs, technical guidance regarding affordable housing regulations, and assistance with implementation of the City’s adopted housing goals. RSG’s current agreement with the City expires on August 17, 2026.

RSG’s primary ongoing responsibilities include the review and preparation of annual compliance reports for affordable housing developments totaling over 350 affordable units, and preparation of annual Authority and Agency housing reports required by State law. Additional services are provided on an as-needed basis to support affordable housing planning, development, rehabilitation, relocation, land-use analysis, and program administration activities.

To ensure continuity of affordable housing consultant services, the City released a Request for Proposal (“RFP”) on January 28, 2026, seeking qualified consulting firms. Three firms submitted proposals in response to the RFP.

Consistent with the City’s Purchasing and Contracting Guidelines Item: 11
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(“Purchasing Guidelines”), proposals were evaluated through a three-phase review process consisting of a technical proposal review, qualifications interview, and cost proposal evaluation.

Following completion of the evaluation process, RSG received the highest ranking, reflecting the vendor’s expertise and alignment with the City’s objectives.

Staff recommend awarding the proposed Professional Consultant Services Agreement for Affordable Housing Consultant Services (“proposed Agreement”) to RSG, with a total not-to-exceed compensation of $213,615 and a three-year term with two optional one-year extensions. RSG’s comprehensive approach to the services is supported by favorable references (Attachment 1) and a proven track record working with the City.

The proposed Agreement was prepared by the Housing Division and approved as to form by the City Attorney (Attachment 2). Sufficient funds are included in the Fiscal Year (“FY”) 2026-27 Operating Budget to cover the costs of the recommended action.

BACKGROUND:

To assist with implementation of the City's affordable housing goals and regulatory obligations, the Authority and City jointly contract with a firm specializing in affordable housing consulting services. These services have been provided by RSG since 2013.

Affordable Housing Services and Planning Documents
RSG provides technical assistance and specialized expertise on an as-needed basis to support affordable housing projects, program administration, and implementation of the City's adopted housing goals.

The Authority, City Council, and Housing Division are responsible for overseeing affordable housing activities and implementing adopted goals of the City and Agency, as identified in the City's Housing Element and Five-Year CDBG Consolidated Plan. The Consolidated Plan is a five-year planning document that identifies the City's housing and community development needs, establishes goals and objectives for the expenditure of CDBG funds, and supports implementation of the Housing Element.

The City Council adopted the current 2025-2030 Consolidated Plan on May 6, 2025. Fiscal Year 2026-27 represents the second year of the current planning cycle. Key goals of the Consolidated Plan include:

Item: 11
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Rehabilitating the City's existing single-family and multi-family housing stock;
Conserving and expanding the supply of affordable housing; Providing supportive housing and services for individuals experiencing or at risk of homelessness;
Providing community services and infrastructure improvements benefitting low- and moderate-income residents and persons with special needs; and Expanding economic opportunities for residents in low- and moderate- income target areas.

Affordable Housing Consultant Services
RSG’s primary recurring responsibilities consist of the review and preparation of annual compliance reports for affordable housing developments subject to affordability restrictions, regulatory agreements, and preparation of annual Authority and Agency housing reports required by State law.

RSG provides support in areas including affordable housing compliance monitoring, annual housing reporting, affordable housing asset management, development and rehabilitation activities, relocation assistance, land-use analysis, and general housing program administration.

DISCUSSION:

The City Manager reviewed and approved an RFP for Affordable Housing Consultant Services, which was released on January 28, 2026. Three proposals were received in response to the RFP from the following firms:
RSG
MNS Engineers, Inc. (“MNS”)
Common Bridge
Consistent with the City’s Purchasing Guidelines, staff assembled a Selection Committee approved by the City Manager to review proposals and participate in the interview phase of the selection process. Three evaluators were a part of the Technical and Qualifications Review of each proposal. The Selection Committee comprised the following staff:

Technical Proposal Review and Interview Evaluators:
Assistant City Manager
Management Analyst, Economic Development Division
Senior Planner
Item: 11
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Review Process
The review process is comprised of three phases: the Technical Review of written proposals, the Qualifications Interview, and the Revised Cost Proposal evaluation. A firm must receive an average of 60 points (60%) or higher, in the Technical Review phase to move on to the Qualifications Interview phase.

Common Bridge included pricing information as part of its proposal. The City's Purchasing Guidelines require cost proposals to be submitted separately from the technical proposal to prevent the Selection Committee from considering cost during the qualifications review process, and to ensure that the most qualified firm is selected. Therefore, Common Bridge was omitted from the Technical Review, and their proposal was not considered.

Both RSG and MNS scored at least a 60-point average score from the Technical Proposal Review. The results of the Technical Review phase are summarized in Table 1 below.

Table 1: Technical Review Phase Scoring
Firm Technical Review Rater Total
1 2 3
MNS 81 72 80.5 77.83
RSG 98.5 80 66 81.5
Common
Bridge

N/A N/A N/A N/A
Pursuant to the City’s Purchasing Guidelines, the City invited the firms that scored a minimum of 60 points for an interview to discuss their respective approaches to the requested services. Both firms were invited to an interview.

Interviews were conducted on April 8, 2026. Following the Qualifications Interviews and subsequent scoring by the Selection Committee, the Purchasing Coordinator reviewed the cost proposals. The Qualifications Interview and Cost Proposal Evaluation phase scoring is reflected in Table 2.

Table 2: Qualifications Interviews and Cost Proposal Review Phase Scoring Firm Technical Review Rater Total
1 2 3
MNS 172 160 180 170.67
RSG 181.6 164 173.6 173.07
Including the cost proposal component, RSG received the highest ranking in the Item: 11
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proposal review process. Table 3 shows the total cost, across the three-year term, for the firms that made it to the Qualifications Interview and Cost Proposal Evaluation phase.

Table 3: Proposed Compensation
Firm Total Compensation
MNS $190,516
RSG $213,615
Recommended Consultant – RSG
RSG is a California-based consulting firm with more than 45 years of experience assisting public agencies with affordable housing planning, compliance, development, and program administration. Since 1979, the firm has provided technical expertise to local governments in implementing affordable housing policies, monitoring regulatory compliance, administering housing programs, preparing required State and Federal housing reports, and supporting affordable housing development and rehabilitation projects.

RSG has successfully provided affordable housing consulting services to the City since 2013 and has consistently demonstrated responsiveness, technical competence, and an ability to effectively support City staff. Staff conducted reference checks with public agencies currently utilizing RSG’s services and found the references to be positive and indicative of a high level of professional service and expertise. Based on the firm's qualifications, experience, project team, and understanding of the City's needs, staff determined RSG to be the most qualified firm to provide affordable housing consulting services.

Scope of Work
Key services to be provided under the proposed Agreement include:
Review and preparation of annual affordable housing compliance reports for affordable housing developments subject to affordability restrictions and regulatory agreements.
Preparation of annual Housing Authority and Housing Successor reports required by State law, including reporting pursuant to Senate Bill 341. Assistance with affordable housing planning, development, and preservation activities, including disposition and development of real property assets and expenditure of affordable housing funds. Review of development proposals, title reports, and other documents associated with affordable housing projects and real property transactions. Preparation and review of affordable housing agreements and related legal documents.

Item: 11
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Assistance with property rehabilitation efforts, including consultant procurement and project coordination.
Support for temporary and permanent tenant relocation activities associated with property acquisition or rehabilitation projects. Financial and land-use analysis related to proposed affordable housing developments and projects.
Ongoing technical guidance and support to City staff regarding affordable housing programs, regulations, policies, and compliance requirements.

The consultant's primary recurring responsibilities consist of annual affordable housing compliance monitoring and preparation of required Authority and Agency reports. Currently, annual compliance monitoring is required for affordable housing developments totaling more than 350 affordable units. All other services are to be provided on an as-needed basis.

Proposed Agreement
Staff recommend the City Council award the proposed Agreement to RSG with a total not to-exceed compensation of $213,615 for the three-year term. The proposed Agreement was prepared by Housing Division staff and has been reviewed by the City Attorney and approved as to form. The term of the proposed Agreement is for three-years with two optional one-year extensions.

FISCAL IMPACT:

Consulting services provided under the proposed Agreement are paid for with Housing Authority funds. The proposed Agreement would include a total compensation amount of $213,615. The compensation would cover the projected costs associated with providing consulting services. Sufficient funds are included in the 2025-2027 Operating Budget to cover the costs of the recommended action.

ATTACHMENTS:

1. Attachment 1 – Reference Check for RSG, Inc.

2. Attachment 2 – Proposed Agreement for Affordable Housing Consulting Services
Initiated By: Hope Hairrell, Management Analyst
Submitted By: Keith Neves, Assistant City Manager
Approved By: Debra Rose, City Manager
Item: 11
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ATTACHMENT 1
Item: 11
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Reference Check for RSG
Affordable Housing Consulting Services
1 of 2

Contact 1
City of Fontana, CA
Contact 2
City of Murrieta
Contact
City of Irvine
# Questions Response Response Response
1 What were the services
performed?
RSG is our consultant for Housing
Monitoring Services that includes annual
tenant income re-certifications, rental
increase reviews, ownership continuing
occupancy verifications, annual monitoring
reporting to the City/Authority for income-
restricted units, property inspections, and
density bonus agreement review and
annual monitoring, as needed.

Analysis of City-owned Housing Authority
properties, formerly redevelopment properties
that were bought with the intent by the City to
develop into affordable housing. Preparing
documents for City Council decision-making
on Housing Authority properties. Assistance
with briefing the City Council in closed
session. Assistance with marketing and selling
Authority properties for housing development.

Assistance with processing sales of existing
ownership affordable units the City,
determining affordable sales prices, new
affordable agreement with new owner, etc.

Assistance with preparing a DDA, land lease
and loan for a City-owned Housing Authority
affordable housing development (which is now
built and is a wonderful project). Assistance
with preparing the City's Revolving Loan Fund
for affordable housing development over the
past year, working with staff and SCAG. (loan
fund is now established and about to get it's
first loan out). Annual monitoring of all City
affordable housing properties, both rental and
ownership. Preparing annual reports to the
State, including the APR and Housing
Authority Monitoring reports to HCD, including
the annual SB 341 report at the end of the
year. Assistance with coordination with
affordable housing developers, for example on
financing options for projects, working with
CSCDA and CMFA, as well as advising on
resyndications on existing properties with
existing affordable operators
RSG has been assisting us with the compliance
monitoring of an average of 40 affordable projects
for Irvine over the last three years. This has
entailed:

Program Compliance- Uses the project’s regulatory
agreement to determine whether the project
complies with program regulations and
requirements. Notifications- correspondence with
projects. Monitoring Documents- collects and
reviews all related compliance documents for each
project. Data Analysis- analyze the annual report
documentation provided by the owner and runs an
analysis to determine compliance for each
affordable unit. Key Findings and Clearance
period-assists with remediating findings of
noncompliance. Final report-completes and
provides us a final close-out report for each
projects. Onsite Monitoring – provides on-site
monitoring and physical inspections for projects
that require it such as HOME projects. Draft
Findings-completes a draft report of findings,
identifies any corrections for property to make and
follows up on corrections with the property to
provide completed corrections report to the City.

Remote Monitoring- for the larger part of our
projects, they conduct remote-desk monitoring
where they review files electronically by
coordinating with each project. General on-call
services- we opt in to a select number of hours for
them to provide technical assistance to City staff on
items as needed.

2 How would you rate the quality
of work? Scale
1‐5: 1 Poor, 2 Ok, 3 Good,
4 Very Good, 5 Excellent

5 Their work is excellent the majority of the time,
we would rate as a 5.

Very Good

3 Were there any delays or
deviations from the firms'
workplan? If so, what caused
them?

No

They have been timely in responding when the
City asks for work product. The City has been
the main delay on many of the above items, for
example we are often slow in gathering the
data we need to provide to help get our annual
Yes. While this was mostly caused by do to delays
from properties in providing corrections to findings,
there have been a few instances where some work
plans have been delayed due to staff changes with
their group or due to their workload. However, this

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Reference Check for RSG
Affordable Housing Consulting Services
2 of 2

Contact 1
City of Fontana, CA
Contact 2
City of Murrieta
Contact 3
City of Irvine
# Questions Response Response Response

3 Were there any delays or
deviations from the firms'
workplan? If so, what caused
them?
housing reports together, but that's not on
RSG, that's on us. They have always been
very good at providing reasonable
expectations to get work product back to
us. We have such a good working relationship
with them, we think of them as an extension of
staff at the City. There haven't been any
significant delays with any work product that
we've requested. They have been great at
following up with our staff to ensure we get
reports in on time.
is communicated to us.

4 Did the firm meet all
deadlines?

Yes
Yes, they have met everything we've asked of
them since I've been working with them the
past eight years
They generally stayed within the time frame
provided. We understand that there are instances
where they have to wait for properties to respond in
order to move forward.

5 Was regular communication
satisfactory?

Yes
Yes, they communicate regularly with us and
typically get back to me same day (unless it's
late) when I email. We've coordinated on a
number of property sales and affordable
housing projects (as noted above), they have
always maintained good communication

Yes, the team is good about communicating and
being available for questions.

6 How would you rate the firm’s
approach and performance
when interacting with
community stakeholders
including elected officials
(Council Members) and
public stakeholders? Scale
1‐5: 1 Poor, 2 Ok, 3 Good, 4
Very Good, 5 Excellent

5 It is excellent, a 5, our City Council was very
impressed with them when we marketed and
sold the Housing Authority properties. We
lined up a very good affordable developer as
well, who built the new project, and in part that
was because everyone did such a good job,
including RSG.

Very good

7 Would you consider using this
firm for future
projects/services?
Yes, RSG has held our Housing Monitoring
Contract for many years.

Yes, we have an ongoing contract with RSG
and use them as an extension of staff. We're
about to send out our semi-annual RFP for
services (we don't keep any consultants on
contract more than a few years, it's City
policy). I'd say that anyone is welcome to
apply when we send out the RFP, but we at
the City know who the best firm is that we
hope will apply and continue to work with the
City and that's RSG. I have worked with other

Yes
Item: 11
256

Reference Check for RSG
Affordable Housing Consulting Services
3 of 2

Contact 1
City of Fontana, CA
Contact 2
City of Murrieta
Contact 3
City of Irvine
# Questions Response Response Response

7 Would you consider using this
firm for future
projects/services?
firms, I worked in San Diego and Orange
Counties at other jurisdictions. In my
experience over the last 25 years, RSG is the
best. Also, our Finance Department uses RSG
as well for financing services for various other
things, including specific financial analysis, for
example related to our CFDs and on-going
City financial management.

8 Do you have any additional
comments or information
regarding your experience
with the firm?

Great business partner that I would highly
recommend.

I would just advise to be clear with them what
services you'd like them to provide. They have
many talented staff on their team, and being
clear about what you need them to do, will get
you their best team members for those
services. I have seen other Cities at
times struggle because they don't really know
what they want. In that case, it's not the
consultants fault if no one at the City is being
up front about what the expectations are. It's
hard to know what we need sometimes as
staff, but figuring that out first will help ensure
they provide everything you need.

My experience with the team has been a positive
one and they are a responsive group.

Item: 11
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ATTACHMENT 2
Item: 11
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AFFORDABLE HOUSING CONSULTANT SERVICES
(2026-079)

City of Lake Forest
100 Civic Center Dr.

Lake Forest, CA 92630

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City of Lake Forest
Professional Consultant Services Agreement
Affordable Housing Consultant Services
I. PARTIES AND DATE. ................................ ................................ ..............

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

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

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

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

VI. EXHIBIT "A-I" - FEDERALLY REQUIRED PROVISIONS FOR SERVICES ........

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

VIII. EXHIBIT "C" - COMPENSATION ................................ ..............................

IX. EXHIBIT "D" - INSURANCE REQUIREMENTS ................................ ...........

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Title: Affordable Housing Consultant Services
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 RSG, Inc., a California Corporation (Inc.) , with its principal place of business at 170 Eucalyptus Ave. Suite 200, Vista, CA 92084 (“Consultant”). City and Consultant are sometimes individually referred to herein as “Party” and collectively as “Parties.” Docusign Envelope ID: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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Title: Affordable Housing Consultant Services
4 2. RECITALS.

2.1. Consultant.

Consultant desires to perform and assume responsibility for the provision of certain professional affordable housing 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 affordable housing 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 affordable housing consulting services for the Affordable Housing Consulting Services project ("Project") as set forth in this Agreement.

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Title: Affordable Housing Consultant Services
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 affordable housing 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 August 18, 2026 to August 17, 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.

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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: Rosa Romero, Senior Associate & Project Manager .

3.2.5 City's Representative. The City hereby designates Keith Neves, Assistant City Manager, 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 Tara Broughton, Principal in Charge, 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 sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the Docusign Envelope ID: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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7 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: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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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.

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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 TWO HUNDRED THIRTEEN THOUSAND SIX HUNDRED AND FIFTEEN DOLLARS ($213,615.00) 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. Since the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if 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: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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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: RSG, Inc.
170 Eucalyptus Ave. Suite 200
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Title: Affordable Housing Consultant Services
11 Vista, CA 92084
ATTN: Tara Broughton, Principal in Charge
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 notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) Docusign Envelope ID: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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12 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 non- appealable 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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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: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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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.

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15 4. SIGNATURES.

4.1. SIGNATURES.

CITY OF LAKE FOREST RSG, Inc.

By: [AUTHORIZED CITY SIGNATURE]

Robert Pequeño
Mayor
By: [VENDOR SIGNATURE 1]

James Simon
President & Secretary
[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]

Tara Broughton
Vice President & Treasurer
APPROVED AS TO FORM:

By: [CITY ATTORNEY SIGNATURE]

Best Best & Krieger LLP
City Attorney

[CONTRACT ADMINISTRATOR APPROVAL]
[PROJE

CT MANAGER APPROVAL]
[CITY CLERK - INSURANCE APPROVAL]
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16 4.2. Signatures

LAKE FOREST HOUSING AUTHORITY RSG, Inc.

By: [AUTHORIZED CITY SIGNATURE]

Robert Pequeño
Chair
By: [VENDOR SIGNATURE 1]

James Simon
President & Secretary
[If Corporation, TWO SIGNATURES,
President OR Vice President AND Secretary
OR Treasurer REQUIRED]
ATTEST:

By: [CITY CLERK SIGNATURE]

Thy Merritt
Authority Secretary
By: [VENDOR SIGNATURE 2]

Tara Broughton
Vice President & Treasurer
APPROVED AS TO FORM:

By: [CITY ATTORNEY SIGNATURE]

Best Best & Krieger LLP
Authority Council

[CONTRACT ADMINISTRATOR APPROVAL]
[PROJECT MANAGER APPROVAL]
[CITY CLERK - INSURANCE APPROVAL]
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17 5. EXHIBIT "A" SCOPE OF SERVICES

5.1. EXHIBIT "A" SCOPE OF SERVICES
Affordable Housing Consulting Services
The Lake Forest Housing Authority (“Authority”) is responsible for implementing the City’s affordable housing goals including administering the City’s affordable housing programs, overseeing former redevelopment affordable housing assets, and properly expending affordable housing funding resources. The Consultant will provide the Authority and other City staff with general affordable housing consultant services, including assisting with the creation and/or preservation of affordable housing in Lake Forest.

Respondents may include in their proposals different and/or additional services for the City to consider, with justification of each new service proposed. Proposals should demonstrate the consultant’s experience and expertise with the range of services included in the project’s Scope of Work. The primary scope of services for the firm will include, but may not be limited to:

1. Review and Preparation of Annual Compliance Reports: Conduct compliance reviews of annual affordable housing compliance reports submitted by affordable housing providers, to verify full compliance with all applicable State regulations, tenant income limits, and other requirements imposed by applicable affordable housing covenants.

2. Annual Housing Reports: Prepare Housing Authority and Redevelopment Agency Housing Successor annual reports, including as required pursuant to CA Senate Bill 341 (Health and Safety Code Section 34176, 34176.1) and advise City staff with respect to associated compliance tasks.

3. Disposition and Development Efforts: Assist City staff with the disposition and development of real property assets consistent with direction from the City Council and the City’s affordable housing policies, goals and objectives. Assist with development of a strategy for expenditure of accrued housing funds.

4. Site Assembly Coordination: Assist City staff with: review of development proposals, title reports, and other documents associated with disposition of real property; meetings with prospective buyers, tenants, and attorneys; other related activities.

5. Negotiation/Review of Affordable Housing Agreements: Assist City staff with preparation and review of affordable housing agreements between the City or Housing Authority, and an affordable housing provider.

6. Property Rehabilitation: Assist City staff with efforts to rehabilitate or otherwise improve real property. Work with staff to solicit proposals from qualified architects and construction management firms to prepare construction plans and specifications for housing rehabilitation projects.

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18 7. Relocation Efforts: Assist with temporary or permanent tenant relocation efforts required in conjunction with property acquisition or rehabilitation. Meet with tenants to discuss relocation options and provide translation services as necessary.

8. Land-Use Analysis: Conduct financial analysis of land use options, pro forma or other analysis, related to proposed affordable housing development.

9. Advise Staff: As needed, provide City staff with support, guidance, and assistance with housing- related matters.

With respect to the Scope of Work listed above, consultant’s primary/regular task responsibilities will be as described under tasks #1 and #2. Currently, annual compliance reports are required for six housing projects: (1) 189 units; (2) 71 units; (3) 57 units; (4) 4 units; (5) 1 unit; (6) 65 units.

All other tasks and assignments would be unusual and occur on an as-needed basis.

Consultant shall provide the following affordable housing professional consulting services relative to the City's Affordable Housing Consulting Services project.

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19 6. EXHIBIT "A-I" - FEDERALLY REQUIRED PROVISIONS FOR SERVICES

6.1. EXHIBIT "A-I" - FEDERALLY REQUIRED PROVISIONS FOR MAINTENANCE

SERVICES
Federally Required Provisions

Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)–Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining and Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.

Debarment and Suspension (executive Orders 12549 and 12689) – A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide exclusions in the System for Award management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive order 12549.

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20 7. EXHIBIT "B" - SCHEDULE OF SERVICES

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

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21 8. EXHIBIT "C" - COMPENSATION

8.1. EXHIBIT "C" - 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 TWO HUNDRED THIRTEEN THOUSAND SIX HUNDRED AND FIFTEEN DOLLARS ($213,615.00).

Task Description Annual Total Total Contract Amount
(Years 1-3)
Prepare Housing Authority Annual Report (Annual Est.) $ 5,555 $ 16,665 Prepare Redevelopment Agency Successor Annual Report
(Annual Est.) $ 5,555 $ 16,665 Review Annual Affordable Housing Agreement Compliance
Report (Annual Est. for Portfolio) $ 18,220 $ 54,660 Affordable Housing Implementation Plan (Annual Est.) $ 18,650 $ 55,950 Assist City Staff with Property Sale Negotiations (Per
Engagement Est.) including Cost and Charges (travel,
incidentals, etc.) $ 22,725 $ 68,175 Incidentals $ 500 $ 1,500 TOTAL $ 71,205 $ 213,615

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22 Hourly Rates
Position Hourly Rates
(Years 1-3)
Principal $305
Director $295
Sr. Associate $250
Associate $205
Sr. Analyst $185
Analyst $170
Research Assistant $145

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-Riverside-Orange Counties.

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23 9. EXHIBIT "D" - INSURANCE REQUIREMENTS

9.1. 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.
(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.

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:

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24 (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. (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 self- insurance 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 Docusign Envelope ID: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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25 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.

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 Docusign Envelope ID: 5645041E-13B4-853A-827C-2A3822994C97 Item: 11
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26 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.

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CITY COUNCIL AGENDA REPORT
MEETING DATE: 7/21/2026
DEPARTMENT: Management Services
SUBJECT:

RESPONSE TO THE ORANGE COUNTY GRAND JURY REGARDING
"WILDFIRES HIT HOME"
RECOMMENDED ACTION(S):

Approve and authorize the City Manager to submit the City’s response to the Orange County Grand Jury report "Wildfires Hit Home."
EXECUTIVE SUMMARY:

The Orange County Grand Jury ("OCGJ") is a civil grand jury made up of Orange County residents empaneled by the Superior Court of California. The OCGJ routinely conducts investigations related to the operations of the County of Orange. On May 19, 2026, the OCGJ published a report titled "Wildfires Hit Home" (“Report”) (Attachment 1). The Report includes an assessment of wildfire impacts to Orange County in recent years, including rising homeowners’ insurance costs in areas that are more susceptible to fires. The report discusses recent regulatory efforts from the State of California to address wildfire risks such as defensible space and home hardening to improve insurability of homes and overall wildfire safety and mitigation of risk. The response to this report (Attachment 2) was drafted in conjunction with the City of Lake Forest’s (“City”) fire services provider, the Orange County Fire Authority (“OCFA”), to address the six findings and three recommendations to which the City must respond. Based on the 90-day deadline to respond to the Report, established in California Penal Code section 933, the City is required to provide a response to the OCGJ by August 17, 2026.

Staff recommend the City Council approve the City’s response to the Report and authorize the City Manager to submit the response to the OCGJ.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

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ATTACHMENTS:

1. Attachment 1 - 2025-2026 Orange County Grand Jury Report "Wildfires Hit Home"

2. Attachment 2 - Draft Response to OCGJ Report
Initiated By: Robert Bauman, Senior Management Analyst
Submitted By: Sean McGovern, Deputy City Manager
Approved By: Debra Rose, City Manager
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ATTACHMENT 1
Item: 12
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Wildfires Hit Home
Orange County Grand Jury 2025-2026
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Wildfires Hit Home

Orange County Grand Jury 2025-2026 Page 3 of 74

TABLE OF CONTENTS
SUMMARY ...................................................................................................................... 5 BACKGROUND .............................................................................................................. 6 REASON FOR STUDY ................................................................................................... 9 METHOD OF STUDY ...................................................................................................... 9 INVESTIGATION AND ANALYSIS ................................................................................ 10 FINDINGS ..................................................................................................................... 31 RECOMMENDATIONS ................................................................................................. 32 COMMENDATIONS ...................................................................................................... 33 REQUIRED RESPONSES ............................................................................................ 34 Acronyms ...................................................................................................................... 41 Glossary ........................................................................................................................ 43 Bibliography .................................................................................................................. 45 Appendix A .................................................................................................................... 50 Appendix B .................................................................................................................... 53 Appendix C .................................................................................................................... 55 Appendix D .................................................................................................................... 56 Appendix E .................................................................................................................... 58 Appendix F .................................................................................................................... 61 Appendix G ................................................................................................................... 63

FIGURES
Figure 1 Map of Eaton and Palisades Fires in January 2025 ......................................... 7 Figure 2 Shared responsibility for risk reduction in wildland-urban interface areas ...... 11 Figure 3 WUI and suburban conflagration fire disaster chain of events. ...................... 13 Figure 4 Example of an Orange County City LRA Fire Hazard Severity Zone Map ..... 16 Figure 5 Board of Forestry and Fire Protection Defensible Zones 0, 1, and 2 .............. 18 Figure 6 Total FAIR Plan Dwelling and Commercial Policies Have Increased, September 2023 to September 2025 ............................................................. 20 Figure 7 City Area Reported in Fire Hazard Severity Zones ......................................... 26 Figure 8 Cities Reporting Achieved, Applied for, or Plan to Apply for a Community- Level Wildfire Risk Mitigation Designation ..................................................... 27 Item: 12
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Wildfires Hit Home