Agenda packet — Newport Beach City Council, November 4, 2025 (part 2 of 2)

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accommodate the City’s Regional Housing Needs Assessment (RHNA) for lower-income households. The amendment implemented the 2006-adopted MU-H2 General Plan Land Use category for parcels within PC -11. The Overlay included use and development standards for multi-unit residential projects, and it require d 30% of the units in a development to be affordable to lower -income households for a minimum of 30 years .

PC-11 is the only planned community in the Airport Area that requires inclusionary housing.

On July 25, 2023, the City Council adopted Ordinance No. 2023 -13, reducing the minimum inclusionary housing requirement of the Overlay from 30 % to 15 %. The amendment was necessary to implement the 6th Cycle Housing Element by mitigating the governmental constraints of imposing a high inclusionary housing percentage that rendered projects financially infeasible and to facilitate construction of housing for all income groups.

On April 9, 2024, the City Council approved the necessary land use entitlements for the development of a 67 -unit condominium project ( Residences at 1401 Quail Street ) by Intracorp Homes . This project is located within the Overlay and includes 8 affordable units, satisfying the required 15% inclusionary requirement (15% of the 52 base units) .

As an incentive for providing affordable housing, the project also received a 27.5% density bonus (15 bonus units) in compliance with State Density Bonus Law. Representatives of Intracorp Homes are requesting that the City consider lowering the required inclusionary percentage applicable to for-sale housing, as the approved project is no longer financially viable to implement (Attachment B).

If the amendment is initiated, staff will conduct further analysis and recommend an appropriate change to i nclusionary housing percentage applicable to for-sale housing projects in PC -11. Future public hearings will be required by the Planning Commission and the City Council.

FISCAL IMPACT:

There is no fiscal impact related to the initiation.

ENVIRONMENTAL REVIEW:

The initiation of an amendment to PC-11 is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. No final action on the amendment will occur at this meeting and the initiation of th e amendment does not have any legally binding effect upon future consideration of the amendment itself. The City will conduct an environmental review prior to the consideration of approval of the amendment.

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Resolution No. 2025-77: Initiating an Amendment to Newport Place Planned Community Development Plan Related to the Minimum Percentage of Inclusionary For- Sale Housing within the Residential Overlay (PA2025-0196) November 4, 2025

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NOTICING:

The Municipal Code does not require n otice for the initiation of amendments. Notice of this item appeared on the agenda for this meeting, which was posted at City Hall and on the City website. Should the City Council initiate the amendment, public notice will be provided for subsequent public hearings before the Planning Commission and the City Council, as required by the Municipal Code.

ATTACHMENTS:

Attachment A – Resolution No. 2025-77
Attachment B – Initiation Request Letter

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Attachment A
Resolution No. 2025-77
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RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA, INITIATING AN

AMENDMENT TO THE NEWPORT PLACE PLANNED
COMMUNITY DEVELOPMENT PLAN (PC-11) RELATED

TO THE MINIMUM PERCENTAGE OF INCLUSIONARY

FOR-SALE HOUSING WITHIN THE RESIDENTIAL
OVERLAY (PA2025-0196)
WHEREAS, Newport Beach Municipal Code (“NBMC”) Section 20.66.020 (Initiationof Amendment) provides thatthe City Council (“CityCouncil”) of the City of Newport Beach (“City”)may initiatean amendment to a Planned Community Development Plan withor withouta recommendation from the Planning Commission; and WHEREAS, City Council desires to amend the Newport Place Planned Community Development Plan (PC-11) relatedtothe minimum percentage of inclusionary for-salehousing withinthe ResidentialOverlay, inaccordance with Section 20.56.050(B) (Development Plan) and Section 20.56.050(E) (Development Plan Amendments) of the NBMC.

NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:

The City Council hereby initiatesan amendment to Newport Place Planned Community Development Plan (PC-11) to lower the minimum percentage of inclusionaryfor-salehousing withinthe ResidentialOverlay.

Section 1:

The recitalsprovided in thisresolutionare true and correct and are incorporatedintothe operativepartof thisresolution.

Section 2:

If any section, subsection, sentence, clause or phrase of this resolutionis,forany reason, held to be invalidor unconstitutional, such decision shall not affectthe validityor constitutionalityof the remaining portionsof thisresolution.The City Council hereby declares that itwould have passed thisresolution, and each section, subsection, sentence, clause or phrase hereof, irrespectiveof the factthat any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 3:

ATTACHMENT A
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308
Resolution No. 2025-

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The City Council findsthe adoption of thisresolutionisexempt from environmental review under the California Environmental QualityAct ("CEQA"), pursuant to Section 15262 of the CEQA Guidelines, California Code of Regulations, Title14, Division6, Chapter 3,because itinvolvesfeasibilityor planning studiesforpossiblefuture actions which the agency, board, or commission has not approved or adopted.

Section 4:

This resolutionshalltake effectimmediately upon itsadoption by the CityCouncil,and the CityClerkshallcertifythe vote adopting the resolution.

Section 5:

ADOPTED this4th day of November, 2025.

Joe Stapleton
Mayor
ATTEST:

Lena Shumway
City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY’S OFFICE
Aaron C. Flarp
City Attorney
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Attachment B
Initiation Request Letter
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NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

November 4, 2025
Agenda Item No. 6
ABSTRACT:

The City Council Integrated Pest Management (IPM) Ad Hoc Advisory Committee (Committee) and staff met with members of the Harbor View and Newport Hills Community Association s to discuss several issues including concerns with the City of Newport Beach’s (City) planned use of synthetic herbicide treatments to control excessive weeds on the Buffalo Hills Park grass athletic fields . After much discussion, the full Committee recommended that the City should undertake a pilot project for the Buffalo Hills Park athletic field, whereby the City would re -sod the entire grass athletic field (not including the Anderson School portion) in lieu of addressing excessive weed control by use o f a chemical herbicide . To implement this pilot project, s taff requests awarding the project to Merchants Landscape Services (Merchants), appropriating $189,000 in increased expenditures from the General Fund and approving an amendment to the on-call portion of Merchants’ agreement.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve Budget Amendment No. 26-038 appropriating $189,000 in increased expenditures in Account No. 0108031-851030 from the General Fund unappropriated fund balance; and c) Approve Amendment No. Two to Maintenance and Repair Services Agreement with Merchants Landscape Services, Inc. for Landscape Services for Parks & Facilities to increase the on-call not to exceed amount by $189,000 for a total on-call not to exceed amount of $4,489,000 and a total overall contract NTE of $14,639,000, and authorize the Mayor and City Clerk to sign the amendment.

DISCUSSION:

On April 29, 2025, City Council established the IPM Committee, composed of Mayor Pro Tem Lauren Kleiman, Councilmembers Noah Blom and Sarah J. Weber.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Kevin Pekar, Parks & Trees Superintendent - 949-644-3069 [email protected]
TITLE: Approval of Amendment No. Two to Maintenance & Repair Services Agreement with Merchants Landscape Services, Inc. (Contract No. 8772-1) for Athletic Field Re-Sodding at Buffalo Hills Park 312
Approval of Amendment No. Two to Maintenance & Repair Services Agreement with Merchants Landscape Services, Inc. (Contract No. 8772-1) for Athletic Field Re-Sodding at Buffalo Hills Park
November 4, 2025

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The Committee’s purpose was to review the City’s current IPM program, which includes the use of pesticides, and submit possible recommendations for potential revisions to the full City Council for consideration.

The Committee first met on July 3, 2025, where staff provided an overview of the current IPM program. The Committee discussed specific concerns raised by some residents in the Harbor View and Newport Hills Community Association regarding the usage of synthetic herbicides on City-maintained athletic fields, particularly Buffalo Hills Park and Bonita Canyon Sport s Park.

The Committee recommended holding a community meeting with residents of the two associations to follow-up on their concerns using the Associations’ Board Meeting as an avenue for this discussion.

The Committee met with approximately 30 residents of both associations at the Harbor View Association Clubhouse on September 15, 2025. Staff presented a brief overview of the current IPM program, with special emphasis on athletic field maintenance, followed by a question -and- answer session with attendees. Several residents expressed a desire to eliminate all synthetic herbicide use on the City’s athletic fields, while staff relayed concerns regarding safet y due to uneven playing surfaces should the weeds proliferate. After further discussion, a pilot program was recommended by Councilmember Blom on behalf of the Committee for the Buffalo Hills Park athletic field, whereby in lieu of addressing excessive weed control on the existing Buffalo Hills City athletic fields by use of a chemical herbicide, the fields would be stripped of grass and weeds, the surface would be repaired and leveled, and new sod would be laid. The new grass playing surface would then be monitored for weed recurrence and addressed through mechanical and/or organic methods over the next three years (or to the level where treatment for excessive weeds is deemed necessary ). The Buffalo Hills Park athletic field would not be treated with any herbicides during this period.

Staff sought proposals from both of the City’s current on -call landscape contractors for the athletic field repair, preparation and re -sodding work f ollowing the community meeting and direction from the Committee. The scope of work include s removal of 115,800 square feet of existing grass surface, incorporating 300 tons of wash sand with a rototiller to improve drainage, laser leveling the surface, installation of 115,800 square feet of overseeded hybrid Bermuda sod, and installation of protective snow fencing. The proposed re-sodding work will be undertaken in early December 2025 and take approximately two weeks to complete. Snow fencing will then be installed, and the field will be closed to all activity for four weeks. The field will then be open for passive use but restricted from further sports related use for an additional four weeks to allow the sod to establish.

Merchants provided the low bid of $188,029.15, which was slightly lower than Brightview Landscape Services bid of $200,672.57. Merchants is the current City park and facilities contractor and staff is satisfied with the level of service; the value Merchants has provided and the quality of the field renovations that Merchants has p erformed. Merchants’ supervisors and field staff possess excellent technical knowledge regarding the intricate and time-sensitive work entailed with athletic field renovations and provide similar services for the City of Irvine, among others.
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Approval of Amendment No. Two to Maintenance & Repair Services Agreement with Merchants Landscape Services, Inc. (Contract No. 8772-1) for Athletic Field Re-Sodding at Buffalo Hills Park
November 4, 2025

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Staff requests approving a second amendment to the Merchants’ agreement to provide for the re-sodding pilot pro ject at Buffalo Hills Park, as well as approving a budget amendment appropriating $189,000 in increased General Fund expenditures to fund the necessary amendment.

FISCAL IMPACT:

The Budget Amendment appropriates $ 189,000 in increased expenditur es from the unappropriated General Fund balance to the Turf Renovation account in the Public Works Department, 0108031-851030.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A - Budget Amendment
Attachment B - Amendment No. Two with Merchants Landscape Services, Inc.

Attachment C - Location Map
314
Department: Public Works
Requestor: Theresa Schweitzer
City of Newport Beach

BUDGET AMENDMENT
2025-26
ONE TIME:
[2J Yes D No
Approvals

CITY MANAGER'S APPROVAL ONLY
City Clerk:
0 COUNCIL APPROVAL REQUIRED Finance Director: /)""'1 Pl.�---�-- Budget Manager:C:�
u \J
EXPLANATION FOR REQUEST:

BA#: 26-038
Date
Date 16/ tz./z,,;
Date ID ( 'lr[r/ If'�
To appropriate additional budget in the Parks Turf Renovation account for Amendment No. Two to Maintenance & Repair 0 from existing budget appropriations Services Agreement with Merchants Landscape Services, Inc. (Contract No. 8772-1) for sports field re-sodding at Buffalo Hills D from additional estimated revenues Park.

REVENUES
Fund# Org

EXPENDITURES
Fund# Org
010 0108031

FUND BALANCE
Fund # Object
010 300000
Object Project Description
Object Project Description
851030 PARKS - TURF RENOVATION
Description

GENERAL FUND - FUND BALANCE CONTROL
0 from unappropriated fund balance
Increase or (Decrease) $
Subtotal I $ �--------�
Increase or (Decrease) $
189,000.00
Subtotad $ 189,000.00 '----'-------'----'
(189,000.00)
Subtotal I $ (189,000.00)�----��--�
Fund Balance Change Required

ATTACHMENT A
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ATTACHMENT B
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MACARTHUR

NEWPORT
HILLS
HARBOR
VIEW
SAN
MIGUEL
DR
BONITA
CANYON
BLVD

SPYGLASS
DR
HILL
RD
FORD
RD

PROJECT

LOCATION

CITY OF NEWPORT BEACH

PUBLIC WORKS DEPARTMENT
10/22/2025

LOCATION MAP

ATTACHMENT C
I:\Users\PBW\Shared\Contracts\FY25-26 CURRENT\200_STREET_DRAIN\Concrete Rplcmt Prog C-9945_26R06\COUNCIL MEMOS\Location Map_Buffalo Hills.dwg 10/22/25 - 3:30pm DJordan 6-8
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NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

November 4, 2025
Agenda Item No. 7

ABSTRACT:

The City of Newport Beach (City) received construction bids for Phase 3 of the Irrigation Controller Replacement project. Staff requests City Council approval to award the construction contract to Superb Engineering (Superb) of Banning. The project replaces and upgrades 50 outdated controllers at various parks and right -of-way locations.

RECOMMENDATIONS:
a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because this project has no potential to have a significant effect on the environment;
b) Award Contract No. 9 924-1 to Superb for the total bid price of $ 670,004 for the Irrigation Controller Replacement Phase 3 project , and authorize the Mayor and City Clerk to execute the agreement; and
c) Establish a contingency of $33,500 (approximately 5% of the total bid) to cover the cost of unforeseen work not included in the original contract.

DISCUSSION:

The City ’s Fiscal Year 202 5-26 Park Maintenance Master Plan (PMMP) includes the third phase for updating the City’s irrigation controllers. This project replaces 50 outdated controllers at various locations and continues the City’s conversion to a cloud- based system that allows staff to monitor and control irrigation and its programming from any location via computer, tablet or cell phone.

The Public Works Department issued a Request for Bids (RFB) for replacement of 50 irrigation controllers through the City’s electronic bidding portal.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Kevin Pekar, Public Works Superintendent - 949-644-3069, [email protected]
TITLE: Irrigation Controller Replacement Phase 3 – Award of Contract No. 9924-1
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Irrigation Controller Replacement Phase 3 – Award of Contract No. 9924-1 November 4, 2025

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At 3 p.m. on October 9, 2025, the City Clerk opened and read the bids for this project.

BIDDER BID AMOUNT
Low Superb Engineering $670,004.00
2nd The Davey Tree Expert Company $695,545.47
3rd Greenfield Management $704,888.00
4th EMTS, Inc. $707,782.08
5th American Landscape, Inc. $717,249.00
6th JAS Landscape LLC $728,000.00
7th Merchants Landscape, Inc. $737,070.06
8th RBH Construction & Engineering $738,800.00
9th Villa Park Landscape $766,062.00
10th Mariposa Landscapes, Inc. $778,244.45
11th DMS Facility Services $790,000.00
12th SGD Enterprises $807,000.00
13th ACC & Engineering LLC $892,700.00
The City received 13 bids for th is project . Staff recommends awarding to the lowest bidder, Superb. Superb is registered with the Department of Industrial Relations and possesses a California State Contractor’s License Classification C-27, as required by the project specifications. A review of its references shows satisfactory completion of similar projects.

Superb’s total bid amount was approximately 7% below the engineer’s estimate of $720,000. The difference between the low bid and the engineer’s estimate is due to the increasingly competitive bid environment.

Pursuant to the contract specifications, the contractor will have 120 consecutive working days to complete the work. Work is scheduled to start in December 2025.

FISCAL IMPACT:

The adopted Capital Improvement Program budget includes sufficient funding for th e award of this contract. It will be expensed to the PMMP account in the Public Works Department, 57001-980000-25P02.

The following funds will be expended:

Account Description Account Number Amount
PMMP 57001-980000-25P02 $ 703,504
Total: $ 703,504

Proposed fund uses are as follows:

Vendor Purpose Amount
Superb Construction Contract $ 670,004
Superb Construction Contingency $ 33,500
Total: $ 703,504 321
Irrigation Controller Replacement Phase 3 – Award of Contract No. 9924-1 November 4, 2025

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Staff recommends establishing $33,500 (approximately 5% of the total bid) for contingency purposes and unforeseen conditions associated with construction.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

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NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

November 4, 2025
Agenda Item No. 8
ABSTRACT:

The City of Newport Beach (City) maintains certain landscaped slopes, medians , entry nodes and roadsides in Newport Coast through a Property Maintenance Agreement, which was entered into in 2003 between the City and the Newport Coast Community Association (NCCA). Following many years of disputes between the parties regarding responsibility for certain tree and landscape area maintenance, a lawsuit was filed against the City by the NCCA in January 2024. As part of the Settlement Agreement of the lawsuit, the parties agreed to amend the 2003 Maintenance Agreement to clarify and better define all areas of disputed maintenance obligations. Staff recommends approval of the first Amendment to the Property Maintenance Agreement with the NCCA.

DISCUSSION:

Annexation of the Newport Coast area into the City occurred January 1, 2002, by way of the Newport Coast Pre-Annexation Agreement (PAA). Through the PAA, the City agreed to maintain certain eligible properties in the areas commonly known as Newport Coast and/or Newport Ridge.

On December 9 , 20 03, the City and the NCCA entered into a Property Maintenance Agreement (Agreeme nt) which set forth the terms and conditions of the City’s maintenance obligations . Under the Agreement, the City’s m aintenance obligations includes, but is not limited to, general landscaping (such as removal of leaves, weeds, trash, and other debris from landscape d areas and disposed of off -site), TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Kevin Pekar, Parks & Trees Superintendent - 949-644-3069, [email protected]
TITLE: Approval of Amended and Restated Property Maintenance Agreement with Newport Coast Community Association
323
Approval of first Amended Property Maintenance Agreement with the Newport Coast Community Association
November 4, 2025

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maintenance/repairs and adjustments of irrigation system, mowing, edging and fertilization of turf areas; trimming and fertilization of groundcovers, shrubs and trees; as needed weeding, pest treatments, and as needed Cal ifornia native slope maintenance.

Also, under the Agreement, the City pays the water and electric bills for the City maintained areas.

Throughout the years, the City has worked to ensure that specifications under the Agreement were met. Public Works staff meet monthly with landscape committee members, property managers of the NCCA and landscape contractors, where maintenance punch lists are developed and previous landscape items are checked for completion. The City’s current contractors for the area’s landscape and trees maintenance are Brightview Landscape Services and Great Scott Tree Services, respectively. Annual maintenance costs for Newport Coast areas covered by the agreement exceed $500,000 for Brightview and $100,000 for Great Scott.

In recent years disagreements have arisen over various items of responsibility, however two particular items: 1) the responsibility of replacing several mature Canary Island Date Palms infected with Fusarium disease located on the corner and entry statements, and 2) removal of City maintained trees throughout the sloped landscape that have been deemed by NCCA consultants to be a fire threat have been the primary item s of dispute . On January 26, 2024, the NCCA filed a lawsuit in Orange County Superior Court, alleging the City breached the Agreement, which the City denies.

The Parties have recently conditionally settled the disputed obligation s pursuant to a Settlement Agreement and Release . As part of the resolution, the City and NCCA have also agreed to an Amended Agreement to further clarify and delineate the maintenance obligations of the City. The substantive changes to the Agreement include:

1) Revised maintenance map that delineates the City is now responsible for a larger swath along Newport Coast Drive including the corner statements at Newport Coast/Ocean Ridge and Newport Coast/Vista Ridge while NCCA is now responsible for most of the area in and around Pelican Hill Road and other portions within Newport Coast;

2) The cost to the City in the future for removal and replacement of the Canary Island Date Palms at Newport Coast/Ocean Ridge and Newport Coast/Vista Ridge is capped at $40,000 per tree;

3) The City’s future obligation to replace trees in all other locations shall be per the Citywide standard, but also limited to no larger than a 48-inch box;

4) Landscape enhancements are to be funded or carried out by NCCA;

5) Monthly walkthroughs between the City and NCCA are intended to serve as the means to resolve all dispute regarding the parties’ compliance with the Agreement.

Any disputes that are not resolved through the monthly walkthrough would be elevated for resolution through a third-party landscape expert or arborist. 324
Approval of first Amended Property Maintenance Agreement with the Newport Coast Community Association
November 4, 2025

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FISCAL IMPACT:

The City currently expends approximately $600,000 on landscape maintenance pursuant to the Agreement in the Newport Coast area. With this amendment to the Agreement, the City’s tree replacement costs would increase. For example, t here are 40 Canary Island Date Palms within the corner statement areas of Newport Coast/Ocean Ridge and Newport Coast/Vista Ridge that the City has now agreed to replace . Ten of these trees are currently dead or in a dying state. The cost to address these 10 trees now is covered in the separate Settlement Agreement. In the future, when replacement of any of the other Canary Island Date Palms is required, the City would cover the cost of their replacement, capped at $40,000 per tree. This increased tree replacement cost will be included within future Department operating budgets, funded by the General Fund.

ENVIRONMENTAL REVIEW:

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Amended and Restated Property Maintenance Agreement

325

AMENDED AND RESTATED PROPERTY MAINTENANCE AGREEMENT
This Amended and Restated Property Maintenance Agreement (“First Amendment”), isentered intoon November 4, 2025 (“EffectiveDate”) between the City of Newport Beach (“City”)and the Newport Coast Community Association (“NCCA” or “Association”)(individually“Party”or collectively“Parties”)and ismade with reference to the following;

RECITALS
A. City isa charter citywith the powers and authorityprovided inthe Newport Beach CityCharter and the Constitutionand laws of the State of California.For purposes of this First Amendment, the term City includes the employees, officers, representatives,agents or contractorsof the City.

Association isa Common InterestDevelopment formed pursuant to CaliforniaCivil Code section 1350 et seq.

City,pursuant to a Pre-Annexation Agreement (“PAA”) with the Newport Coast Committee of 2000, agreed to maintain the landscaping of certainareas/properties (“EligibleProperty(ies)”)in the areas commonly known as Newport Coast and/or Newport Ridge (“Annexed Area”).

On December 9, 2003, the Parties entered into the Property Maintenance Agreement (“Agreement” or “PMA”), attached hereto as Exhibit A, which set forth the terms and conditions of the City’smaintenance obligations. Unless otherwise specificallyamended herein,the Agreement remains in effect.

On January 26, 2024, Association fileda lawsuit inOrange County Superior Court, Case No. 30-2024-01375558-CU-BC-CJC, alleging the City breached the Agreement, which the Citydenies (“Action”).The Partieshave conditionallysettled the action pursuant to a Settlement Agreement and Release.

Notwithstanding the foregoing,as part of the resolutionof the Action, the City and Association agreed to enter this First Amendment to further delineate the maintenance obligationsof the City under the Agreement.

NOW, THEREFORE, the Parties agree as follows;

1. TERM.
(a) Effective Date. The initialterm of thisFirstAmendment (InitialTerm) shall be four (4) years commencing on the EffectiveDate unless this First Amendment isterminated as provided in Section 9 or Subsection (b) below, (b) Extension. The Parties agree that the term of this First Amendment shall automatically extend for periods of four (4) years (Extended Term[s]) commencing on the expiration of the InitialTerm or the expiration of any

ATTACHMENT A
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Extended Term unless the Association serves the City with a notice of termination within thirty(30) days priorto expirationof the InitialTerm or any Extended Term.

MAINTENANCE TO BE PERFORMED.2.
(a) Scope. City shall at its sole cost and expense, through either its own employees or a qualifiedthirdparty contractor (unless the Parties agree to reimburse NCCA forthe completion of certainwork afterreview and approval of a proposal),perform maintenance services (“Maintenance”) listed,and to the standard(s) described, in the Scope of Services attached hereto as Exhibit B (Scope of Services) with respect to the EligibleProperty described/depicted in ExhibitC and more particularlydescribed in ExhibitC-1, which sets forth the geospatial coordinates. The Parties agree to confirm the above geospatial coordinates in ExhibitC-1 followingthe execution of this First Amendment. To the extent the geospatial coordinates cannot be confirmed and agreed upon, the Parties agree to follow the dispute resolution procedures set forth in Sections 3.d. and 6.i.of the Settlement Agreement and Release in the Action.

The City shallhave no obligationto maintain or perform work on any property that is not specificallydescribed/depicted as EligibleProperty in Exhibits C and/or C-1. The City,in itssole and exclusive discretion,shall have control over the means, methods, equipment, techniques, sequences or procedures used to provide the Maintenance. City may remove or alterlandscaping or other objects from the EligibleProperty, following approval by the Association, and aftera determination by the Public Works Directorthat the: (a) landscaping is sufferingfrom incurable or infectiousdisease; (b) landscaping or object is damaged beyond recovery or repair;or (c) the landscaping or object is inconsistent with the safe movement of pedestrians or vehicles including, without limitation,obstructions to adequate sitedistance along or across any roadway or sidewalk. City shall use its best effortsto installreplacement landscaping that isidenticalto the landscaping thatwas removed except ifthis is highly impracticable.Except as specificallyprovided herein or in Exhibit B, the City shallinstalllandscaping that is:(a) most similarto,includingsize,the landscaping removed; and (b)on the then currentand approved paletteof plant materials for the Association. The plant palette remains the same, with the followingchanges/revisions: Trees can includethe followingspecies: Quercus Virginians‘Joan Lionetti,’Metrosideros Excelsa ‘New Zealand Christmas Tree,’ Arbutus Marina ‘Marina Strawberry Tree,’CaliforniaSycamores (onlygrown in naturalareas not on planed slopes),Olive Trees (36-inch box or smaller),and New Zealand Christmas Tree. Trees to be removed from the current plant palette include the following species: Cypress Trees, Allepo Pine Trees, Eldarica Pine Trees, Eucalyptus Trees and Stone Pine Trees. Plants/Ground Cover can include the following species: Casuarina Glauca, Callistemon Red Rover, Coprosma Marble Queen, Coprosma Repens Taupata Gold, Agonis Flexuosa Nana, and Chrysanthemoides Incana. Plants/Ground Cover to be removed from the current plant palette include the following species: Acacia, ‘Low Boy Prostrate,’and Myoporum. NCCA can provide updated plant palettes.

Amended and Restated Property Maintenance Agreement Page 2 8-5
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which can be modified by NCCA from time to time so long as itdoes not increase the costs to the City, or NCCA will have the option to pay the difference. Notwithstanding the foregoing,the City shall not be obligated to installreplacement landscaping of the same species ifithas been determined thatthe entirespecies isaffectedby the same disease, insect, or condition that caused the damage, destructionor removal of the landscaping and that the disease, insect, or condition cannot be prevented by industry standard maintenance. The intent of the Parties is that the City is obligated,to the maximum extent possible, to maintain the landscape density, design and appearance of the EligibleProperty when all landscaping was in good condition.Cityshallconsider,but not be bound by,comments submitted by the Association relativeto the means, methods, or techniques used to provide Maintenance. This Section shall control the City’sMaintenance obligations.

Other than confirmingthe geospatialcoordinates (tobe agreed upon in Exhibit C-1) set forth above, any disputes or failuresto agree between City and Association related to the Maintenance obligationsset forth above shall be resolved in accordance with Section 8(b) herein,
(b) Landscape Changes. The Parties understand that itmay be necessary or advantageous forthe Associationto modify or change the landscape species (withinthe EligibleProperty areas) forreasons relatedto aesthetics or for other reasons. Should the Association choose to voluntarilymodify or change the landscape species and not because of being compelled to do so because of a governmental requirement, the Association shall be obligated to pay for the cost of such modificationsor changes and be responsiblefor maintaining the particulararea. Ifthe modificationor change is mandated by a government requirement, the cost of the modificationor change shallbe paid by the City.

3. CONDITIONS OF DUTY TO MAINTAIN
The City'sduty to provide Maintenance issubjecttoAssociation’sfullcompliance with thisFirstAmendment and the followingexpress conditions:
(a)Access. Association shall grant City the rightsnecessary, to provide the Maintenance includingsurface and subsurface access, ingress and egress and the right,at the City’ssole cost and expense, to modify,or replace any faculty or equipment adjacent to, on, over or under the EligibleProperty (Access).

Except as provided in Subsection (b),the Association’sgrant of Access shall not be subject to any restrictionincluding,without limitation,limitson the date or time of access, any obligationto provide insurance/indemnityor any limiton the size or nature of vehicles or equipment,
(b)Access Conditions. The Association’sgrant ofAccess shallbe subject to the conditions that:(i)the City repair or replace,to the condition priorto damage, any landscaping or facilitythat isdamaged by City in the course of providing the Maintenance or otherwise;and (ii)except inthe event of an emergency, the Amended and Restated Property Maintenance Agreement Page 3 8-6
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City willcomply with the Association’s rules pertainingto the days and hours during which landscape maintenance may be performed,
(c) Payment for Utilities.City,in itssole discretion,shall either (i)pay for and provide forthe separation of any water or electricalmeter or similar device if the meter or meters provide service to the EligibleProperty and other properties adjacent to or nearby the EligibleProperty that are controlledor maintained by the Association or itscontractors; orOi)City shallreimburse Association in an amount that is based on a formula, calculated by the City and the Association using theirrespective best effortsand acting in good faith that,represents the percentage of the overallcost of water and electricalservice to all Association property that isattributableto the EligibleProperty. Any dispute regarding the formula shall be submitted to the Neutral Arborist, as set forth in Section 8. (d) Adjacent Property. The Association shalluse itsbest effortsto cooperate and comply with requests of the City relatingto the maintenance, modification or condition of Association property or facilitythat is adjacent to the Eligible Property, and which is necessary for the City to fulfilits Maintenance obligations. Association agrees to indemnify and hold City harmless with respect to any damage or injury to the EligibleProperty that is proximately caused by Association’sfailureto comply with itsobligations pursuant to this Subsection. Association’s duty to cooperate includes, without limitation,the obligationto maintain itsproperty in good condition and in a manner that does not create or increase any risk of injury or damage to persons or real or personal property,
(e) Inspection of Eligible Property. Association shallpermit, and the City shall conduct, within thirty(30) days after the Effective Date, an inspection to document via photographs and/or video the condition of the EligibleProperty.

Both parties shall review the documentation and agree on the baseline condition of the EligibleProperty. Ifthe Parties cannot agree on the baseline condition, itshall be submitted to the Neutral Arborist as set forth in Section 8(b) below.

4. ADDITIONAL PARTY OBLIGATIONS
In additionto the duty to perform Maintenance;
(a) Irrigation System Management. The City shall, repair, maintain, and/or replace any electrical,drainage, or irrigationequipment on the EligibleProperty within the Maintenance Schedule timeframes set forth in ExhibitB that requires repair or replacement during the Term at itssole cost and expense, (b) Damage to Association Property. City shallas soon as reasonably practical repair orreplace any Association property thatisdamaged or destroyed by City while providing the Maintenance.

Amended and Restated Property Maintenance Agreement Page 4 8-7
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WATER QUALITY & WATER CONSERVATION5.
(a) NPDES Obligations. Cityshallreasonably comply with any and allobligations and requirements (includingapplying for and obtaining any required permits) pertainingto the EligibleProperty that are imposed pursuant to the Municipal Separate Storm Sewer System (“MS4”) Permit issued to the City and to the County of Orange by the CaliforniaRegional Water Quality Control Board, Santa Ana Region (“Regional Board”), under the National PollutantDischarge EliminationSystem (“NPDES”) permit system,
(b)Water Quality-Limited Watersheds. Association shallreasonably cooperate with the City with respect to compliance with any regulatory directiveby the Regional Board or the State Water Resources Control Board (“StateBoard”) pertainingto the EligibleProperty.The City'sobligationto perform Maintenance shallbe deemed modified to the extent necessary to conform to any directive or order from the State Board, Regional Board, or other agency with jurisdiction over the EligibleProperty,
(c)Water Conservation. Association and its agents and contractors shall reasonably cooperate with the City with respect to any water conservation measure adopted by the City Council or other governmental agency with jurisdictionover the EligibleProperty.

6. INDEMNIFICATION AND INSURANCE
(a) Indemnification. City shall,assuming Association isnot indefault withrespect to itsobligationspursuant to this FirstAmendment, defend, indemnify and hold harmless the Association, its officers,employees, agents and members with respect to any damage, claim, liability,loss, injury,cost, attorney fees or expense that arises out of,or is inany way relatedto, any act or omission of the City in the performance or non-performance of Maintenance pursuant to this FirstAmendment. Association and itsofficers,employees, agents and members shallreasonably cooperate with City in the defense or any claim or lawsuitthe City isobligated to defend pursuant to thisFirstAmendment. City's obligations pursuant to this FirstAmendment shall not apply to damages, claims, injuries,liability,losses, costs, attorney fees or expenses that are proximately caused by the sole negligence or willfulact of the Association or its officers,employees, agents, representatives,or members. City shallhave full discretionto selectcounsel, experts or other professionals to represent or advise itand the Association as well as itsofficers,agents, employees and members with respect to any litigationor any action related to the litigation, (b)Insurance. In additionto itsindemnificationobligationsin Subsection (a),the City shall maintain throughout the term of this FirstAmendment commercial general liabilityinsurance coverage including owned, non-owned and hired vehicle insurance in an amount, and with the self-insurance retentions, as the City Council determines to be in the City'sbest interestsgiven the current Amended and Restated Property Maintenance Agreement Page 5 8-8
330
market conditions.City shall provide Association with appropriate certificates evidencing compliance with thisSection and shalluse its best efforts to add the Association as an additionalinsured on any such policyprovided the City would incur no additional cost to do so or Association reimburses the cost.

7. ADMINISTRATION
This FirstAmendment willbe administered by the Director of the City'sPublic Works Department (“Director”).The Director shall be considered the Project Administrator and shallhave the authorityto act for City pursuant to this First Amendment. The ProjectAdministrator or his/her authorized representative shall represent City in all matters pertaining to the Maintenance. The Project Administrator's address, phone number, facsimile number and e-mail address is set forth in Section 10 of this First Amendment. The City agrees that each time the ProjectAdministratorchanges, itwillnotifythe Association of such change within thirty(30) days, and provide Association with the address, phone number, and e- mail address of the new ProjectAdministrator at the time of notificationof change.

8. MONTHLY WALKTHROUGHS AND DISPUTE RESOLUTION
(a) Monthly Walkthroughs. The City and Association shall conduct monthly walkthroughs of the EligibleProperty to inspect and assess the maintenance work performed. During each walk-through, both Parties shalldocument any items requiringrepair,correction,or completion. Each Party shallcomplete the tasks identifiedinthe monthly walk-through withinone (1) month or,ifthe work cannot be reasonably completed within one month, a reasonable time.

Notwithstanding the foregoing time frame, ifany maintenance work requires urgent or immediate attentionto prevent damage, preserve safety,or avoid material deterioration,the responsible Party shall take reasonable steps to address such maintenance promptly,
(b) Dispute Resolution. The Parties recognize thatdisputes may arise as to compliance with the terms of thisFirstAmendment. To minimize the need for furtherlitigationover a dispute regarding the interpretationor compliance with thisFirstAmendment, eitherParty may give writtenNotice to the other Party of a dispute inthe manner set forthherein,fullydescribing the exact nature of the dispute (“Dispute Notice”).Within thirty(30) days aftereitherParty sends a Dispute Notice, the Partiesshalleithermutually agree to a NeutralArborist to decide/resolve the issues raised inthe Dispute Notice, or ifno such agreement can be reached, each Party shalldesignate their own arborist, and those two arborists shall select a third arborist within thirty(30) days afterthe initialdesignation, to decide/resolve the issues raised in the Dispute Notice.

The Neutral Arborist shall be authorized to meet with the Parties and/or require writtensummaries relatingto the issues raised in the Dispute Notice.

The decision(s) of the Neutral Arborist as to the work that needs to be completed to comply with thisFirstAmendment shallbe binding on the Parties Amended and Restated Property Maintenance Agreement Page 6 8-9
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and shallbe performed by the obligated Party ina timely manner. The Neutral Arborist shall only have jurisdictionto interpretthis First Amendment as it applies to work to be completed and shallnot have jurisdictionto change any terms in the same.

The Neutral Arborist shall serve as the Neutral Arborist for a four-yearterm, which may be renewed by agreement of the Parties, ifthe Parties cannot agree upon renewing the term of the Neutral Arborist,the Parties shall follow the procedure set forthinthisparagraph to selecta new Neutral Arborist. This provision is meant to be consistent with the Neutral Arborist Resolution Procedure set forth in Section 3d. of the Settlement Agreement and Release in the Action. To the extent there are any inconsistencies,the provision in the Settlement Agreement and Release shallcontrol.

The Parties agree to execute a writtenagreement provided by the Neutral Arboristforthe payment of his/herfees and costs. The fees and costs of the NeutralArboristshallbe shared by the Parties equally.

9. TERMINATION
(a) Notice. Inthe event eitherpartyfailsor refusesto perform any of the provisions in this FirstAmendment, that party shall be deemed to be in default in the performance of thisFirstAmendment. The party not in defaultmay terminate thisFirstAmendment if,withinten (10) days afternotice ofdefault,the party in default has not cured the default,or ifmore than ten (10) days are reasonably required to cure the default the party in default has failed to give adequate assurance of due performance within ten (10) days afterreceipt of written notice of default,specifyingthe nature of such defaultand the steps necessary to cure such default. To the extent the City terminates this FirstAmendment, the Association maintains (and does not waive) any rightsitmay have related to PAAand associated annexation of the Newport Coast community, including without limitation,allremedies.
(b) Restoration Following Termination. Upon termination of this First Amendment by eitherparty,City agrees to restore the EligibleProperty to the conditionthat existed upon the date of the City'sinspection as described in Subsection 3(e) of this FirstAmendment. The restorationof the Eligible Property shall be completed as quickly as reasonably practicable,but in no event more than ninety (90) days followingtermination.Any damage or injury to Association property,facilities,landscaping or hardscape that isproximately caused by the Cityduring the restorationprocess, or as a resultof any delay in the restorationprocess (forexample, plant material dying as a resultof any irrigation,drainage, or electricalequipment being inoperative during the restoration)shallbe repaired or replaced by City.

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(c)Survival of Obligations. The commitments and obligationsof the City that are specified in Sections 4(b), 6(a), 9(b), 9(c) and 16 shall survive the termination of this First Amendment.

10. NOTICES
All notices, demands, requests or approvals to be given under this First Amendment shallbe given in writingand conclusivelyshall be deemed served when delivered personally or on the thirdbusiness day afterthe deposit thereof in the United States mail, postage prepaid, firstclass mail, addressed as set forth below or as changed by eitherParty with writtennotice to the other Party in the manner specifiedinthisSection with additionalnoticing,ifdesired by eitherParty, by e-mail at the e-mail addresses set forthbelow.

All notices, demands, requests or approvals from Association to City shall be addressed to cityat:

City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92625
Attn:City Manager
Phone: (949)644-3311
E-Mail: [email protected]
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92625
Attn:CityAttorney
Phone: (949)644-3311
E-Mail: [email protected]
City of Newport Beach
100 Civic Center Drive Newport Beach, CA 92625
Attn: Director of Public Works
Phone: (949) 644-3311
E-Mail: [email protected]
All notices,demands, requests or approvals from City to Association shall be addressed to the Association,attention“PropertyManager” and the followingother individuals at:

Newport Coast Community Association
c/o First Service Residential
15241 Laguna Canyon Road
Irvine,CA92618
Attn: Holly Maddalena
Phone: (949) 500-1163
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E-Mail: Holly,[email protected]
Charles S. Krolikowski,Esq.

Newmeyer & Dillion,LLP
895 Dove St.,2nd Floor
Newport Beach, CA 92660
Phone: (949)271-7233
E-Mail: [email protected]
Amber Y Snider
9 Veneto
Newport Coast, CA 92657
Phone: (949) 355-3862
E-Mail: [email protected]
Gerald Klein
15 Castellina Drive
Newport Coast CA 92657 and
Phone: (949) 683-2009
E-Mail: [email protected]
Jim McGee
McGee & Associates
24 Corporate Plaza Drive
2"^ Floor
Newport Beach, CA 92660
E-Mail: [email protected]
Nothing herein shallrequirean amendment to thisFirstAmendment to revise the names provided herein. The persons identifiedherein may be modified by either Party by providing priorwrittennotification.

11. WAIVER
The waiver by City or Association of any breach of this FirstAmendment by the other shallnot be deemed to be a waiver of any term, covenant, or condition or any subsequent breach.

12. PARTIAL INVALIDITY
If any term or provision of this First Amendment is declared invalid or unenforceable, the remainder of this FirstAmendment shall not be affected.

13. GOVERNING LAW
The laws of the State of Californiashallgovern the enforcement and interpretation Amended and Restated Property Maintenance Agreement Page 9 8-12
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of thisFirstAmendment. Neither the City’sexecution of this First Amendment nor any consent or approval given by the City pursuant to this First Amendment shall affectthe City'spowers and duties as a governmental entity.

14. ENTIRE AGREEMENT; MODIFICATION
This FirstAmendment contains the entire understanding between the Parties relativeto the subject matter. No verbal agreement or implied covenant shall be held to vary the provisions of this FirstAmendment. Each Party has reliedon its own examination of this FirstAmendment, the counsel of itsown advisors, and the warranties, representations, and covenants in this First Amendment. The failure or refusalof eitherParty to read thisFirstAmendment or other documents or to obtain legalor other advice relevant to this FirstAmendment constitutes a waiver of any objection,contention,or claim thatmight have been based on such reading, inspection, oradvice. No provisionof thisFirstAmendment may be amended or varied except by an agreement inwritingsigned by the Partiesor theirrespective successors and approved as to form by the City Attorney.

15. HEADINGS
The headings and captions of the various sections of this First Amendment are for convenience and ease of reference only and do not define, limit,augment, or describe the scope, content, or intentof the same.

ATTORNEY’S FEES AND COSTS16.

Should litigationbecome necessary to enforce one or more of the terms, conditions and/or provisionsof thisFirstAmendment or with respect to any issue arisingout of thisFirstAmendment, the prevailingpartyshallbe entitled to recover reasonable attorney'sfees and costs.
[SIGNATURES ON FOLLOWING PAGE]
Amended and Restated Property Maintenance Agreement Page 10 8-13
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IN WITNESS WHEREOF, the Parties have caused this FirstAmendment to be executed on the day, and year firstwrittenabove.

APPROVED AS TO FORM:

CITY ATTORNEY’S OFFICE
Date; I ^/ 2.^ / Z ^

CITY OF NEWPORT BEACH,
a Californiamunicipal corporation
Date:

By: By;
Aan Harp Vi Joe Stapleton
MayorCityAttorney
ATTEST:

Date;

NEWPORT COAST COMMUNITY
ASSOCIATION, a Californiacorporation
Date;
By: By;
Lena Shumway
City Clerk
Date:

By;
[END OF SIGNATURES]
Attachments: ExhibitA - Agreement
Exhibit B - Scope of Services
ExhibitC - EligibleProperty - Property Map
ExhibitC-1 Geospatial Coordinates of EligibleProperty
Amended and Restated Property Maintenance Agreement Page 11 8-14
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EXHIBIT A
Agreement
8-15
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PROPERTY MAINTENANCE AGREEMENT
I
ThisAgreement(Agreement),datedthis9^dayof ber'.2003 (EffectiveDate) between die City of Newport Beach ("City*)and the Newport Coast Community Association("Association")ismade with refererx* to the following.

RECITALS
A. City isa chartercitywith thepowers and authorityprovided inthe Newport Beach CityCharterand the Constitutionand laws of the State of California.For purposes of thisAgreement, the term Cityincludes the employees, officers,representatives,agents or contractorsof the City.

B, Association isa Common interestDevelopment fomned oursuant to California CivilCode Section 1350, et seq.

C. City has, pursuant to a Pre-Annexation Agreement (PAA) with the Newport Coast Committee of 2000, agreed to maintain certainproperties(EligibleP ropetlies)in the areas commonly known as Newport Coast and/or Newport Ridge (Annexed Area).

D. The maintenance of parkways and medians provides a public benefitby minimizing the potentialfor pedestrian and/or trafficaccidents,ensuring compliance with water qualitylaws, promoting ah attractive environment and preserving publicviews.

E. City'sobligationto maintain the EligibleProperies is subjectto certainconditionsincluding arequest from the Association (as the property owner) and execution of. and compliance with, this Property Maintenance Agreement.

F. Associationhas submitteda requestthat CitymaintainEligiblePropertyowned by Associationand, by execution of thisAgreement, has committed to comply withallconditionsspecifiedinthePAA (relevant section included withinExhibit C).

G. At itsRegular Meeting on December 9, 2003, the Newport Beach City Council authorizedthe City Manager toexecute thisdocument on behalfthe Cityof Newport Beacn.

NOW, THEREFORE, the Partiesagree as follows:

1. TERM
Effective Date. The initialterm of this Agreement (InitialTerm) shall be four (4) years commencing on the EffectiveDate unlessthisAgreement is terminated as provided in Section 8 or extended pursuant to Subsection 1(b).

Extension. The Partiesagree thatthe term of thisAgreement shallautomaticallyextend for periods of four years (Extended Term(s]) commencing on the expirationof the InitialTerm or the expirationof any Extenced Term provided that Association has not served City with a notice of terminationwithinthirty(30) days priorto the expirationof the InitialTerm or any Extended Term.

MAINTENANCE TO BE PERFORMED
City shall.a t itss ole c ost and e xpense. through e ifheritso wn employees o r a c ontractor, perform s ervices listed,and to the standard(s) described, in Exhibit A (Maintenance)with respect to the EligibleProperty described in Exhibit B (Property Map). Association waTants and represents,and Cityisreasonably relyingon Association's representation, that the Maintenance is substantallysimilarto the servicesperformed by /Vssocation or its contractors immediately prior to the EffectiveDate. City shall,in itssole and exclusive discretion,have control over the means, methods, equipment, techniques,sequences or procedures used to (a)
(b)

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!
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provide the Maintenance. City may remove or alterlandscaping or other objects from the Property foibwing consultation with Association and after a determination by the General Services Directorthat the (a) the landscaping is sufferingfrom incurable or infectiousdisease;(b)the landscaping or objectisdamaged beyond recovery or repair;or (c)thatthe landscaping or objectisinconsistentwith thesafe movement of pedestriansor vehicles inckjding.without limitation,obstructions to adequate sight distance along or across any roadway or sidewalk. City shalluse itsbest effortsto installreplacement landscaping that is identicalto the landscaping thatwas removed, but ifthisishighlyimpracticableCityshallinstalllandscapingthatis(a)most sbiilarto the landscaping removed; and (b) on the then currentand approved paletteof piantmaterialsforthe Association.

Notwithstandingthe foregoing.City shallnot be obligatedto installreplacement landscaping of the same species if ithas been determined thatthe entirespecies is affectedby the same disease or conditbn that caused the damage, destructionor removal of the landscaping. The intentof the Partiesis that the Cityis obligated,to the maximum extent possible,to maintainthe landscape density,design and appearance of the Propertywhen alllandscaping was in good condition.City shallconsider,but not be bound by, comments submited by the Associatbn relativeto the means, methods, or techniques used to provide the Maintenance.

3. CONDITIONS OF DUTY TO MAINTAIN
City'sduty to provide Maintenance Is subject to Association'sfullcompliance with ths Agreement and the followingexpress conditions;
Associationshall grant City the rights necessary to provide the Maintenance includingsurface and subsurface access, ingress and egress and the right,at the City’ssolediscretion and at the City'ssole cost and expense, to modify,or replace any facultyor equipment adjacent to,on, over or under the Property (Access). Except as provided in Subsection (b),the Association’sgrant of Access shallnot be subject to any restrictionincluding,without limitation,limitson the date or time of access, any obligationto provide insurance/indemnity or any limiton the size or nature of vehiclesor equipment.
(a) Access.

Access Conditions. The Association'sgrant of Access shall be subject to the conditions that:(i)the City repair or replace,to the conditionpriorto damage, any andscaping or facilitythatwas damagjedbyCityinthecourseofprovidingtheMaintenanceor otherwise:and (ii)except inthe event of an emergency, the City willcomply with the Assoc ation’srulespertainingto the days and hours during which landscape maintenance may be performed.

Meter Separation/Pavment for Utilities,
forand provideforthe separationofany water or electricalmeter or similar device ifthe meter or meters provideservicetothel^opertyand other propertiesadjacent to or nearby the Property that are controlledand maintained by the Associationor itscontractors:OR (ii)Cityshallreimburse Association in an amount that is based on a formula, calculated by the City and the Association using their respectivebest effortsand actingin good faith,thatrepresentsthe percentage of the overallcost of water and electricalservice to allAssociation property that isattributableto the Property. The formula developed by the Partiesshallbe attached to thisAgreement as an exhibit.

Association shall use itsbest effortsto cooperate and comply with reques'iSof the Cityrelativeto the maintenance, modificationor conditionof Associationpropertyor facility that is adjacent to the Property and which is necessary in order for the Cityto perform itsMaintenance obligations.Associationagrees to indemnifyand holdCityharmless withrespecttoany damage or injuryto the Propertythatisproximatelycaused by Association’sfailureto comply with itsobligationspursuant to thisSubsection. Association'sduty to cooperate includes,without limitation,the obligabon to maintain its pKX>pertyingood conditionand ina manner thatdoes not createor increaseany irsk of injury ordamage to persons or realor personal property.
(b>
City,in itssolediscretion,shalleither(i)pay(c)
(d) Adjacent Property,
Association shallpermit,and City shallconduct within30 days afterthe EffectiveDate, an inspectionof tne Property and any adjacentpropertythatcontainsfacilities that serve the Property,to confirm thatthe Property contains liveand viable landscaped material and that the Property and any relevant adjacent property containa fullyfurctionhg irrigationsystem (fully functioningmeans ailirrigationcontrollers,pipes, sprinklerheads or similardevices, water meters, (») Inspection of Property
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Page 3 ends

wiring,or any other aspect of the irrigationsystem are in good working conditionand functioningas intended),and other facilities,such as electricalservice,facilitiesnecessary to perform the Services.The inspection shall be conducted to confirm that the Property meets the criteriafor City Maintenance pursuant to the PAA and to establish a baseline with respect to the conditionof the Property.The City may take videos or photographs of landscaping and irrigationequipment during thisinspectionand may retain these visual records.

ADDITIONAL CfTY OBLIGATIONS4.

In additionto the duty to perform Maintenance;
Irrigation System Management,
and/or replace any electrical,drainage, or irrigationequipment and any tree,bush, shrub, ground cover or other plant materialon the Propertythat requiresrepair or replacement during the Term at itssole cost and expense.
(a) City or itscontractorshallpromptly repair,maintain. (b) Damage to Association Property. City its contractor shall as soon as reasonably practicablerepairor replace any Association Property that is damaged or destroyed by City or its contractor whileprovidingthe Services.

City agrees to pay the Associationfunds addressing past maintenance to the EligibleProperties (maintenance thatoccurred between March 1, 2002 and the EffectiveDate) in a schedule that shallbe added at a laterdate an incorporated herein wthin Exhibit D (Compensation Schedule).
(c) Reimbursement.

WATER QUALITY & WATER CONSERVATION
NPDES Obligations. City shall reasonably comply with any and all obligationsand requirements pertaining to the Property that are imposed pursuant to the Municipal Separate Storm Sewer System (MS4) Permit issued to the City and to the County of Orange by the CaliforniaRegional Water Quality Control Board. Santa Ana Region (‘Regional Board"), under the National Pollutant Discharge EliminationSystem (NPDES) permit system.

Water Quality-Limited Watersheds. Association shall reasonably cooperate with City with respectto compliance withany regulatorydirectiveby theRegionalBoard ortheStateWater Resources ControlBoard ("StateBoard")pertainingtothe Property.City’sobligationto perform Maintenance shall be deemed modified to the extentnecessary to conform to ary directiveor orderfrom the StateBoard, Regional Board, or otheragency withjurisdictionover the Property.

Water Conservation. Association and itsagents and contractors shallreasonably cooperate with City with respect to any water conservation measure adopted by the City Council or other governmentalagencywithjurl^icdonovertheProperty.

INDEMNIFICATION AND INSURANCE

5. (a)
(b)
i
(C)

6. City shall,assuming Associationis not in defaultwith respect to its obligations pursuant to this Agreement, defend, indemnify and hold harmless the Association, its officers,employees, agents and members with respect to any damage, claim,liabiitty,loss,injury,cost attorney fees or expense that arises out of,or isinany way relatedto,any act oromissionofCityin the performance or non-performance of Maintenance pursuant to this Agreement Association and its officers,employees, agents and members shall reasonably cooperate with City in the defense or any claim or lawsuit theCity isobligatedto defend pursuant to thisAgreement. City'sobligationspursuant to this Agreement shal not apply to damages, claims, injuries,liability,losses,costs,attorney fee$or expenses that are proximately caused by the sole negligence or willful act of the Association or its officers,employees, agents, representatives,or members. City shall have fulldiscretionto select counsel, e xperts or other professionalsto represent or advise itand the Association as wells as its (a) Indemnification.
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officers,agents, employees and members with respect to any litigationor any action relatedto the litigation.

In addition to its indemnificationobligationsin Subsection (a),the City of Newport Beach shall maintain throughout the term of this Agreement commercial general liability insurance coverage includingowned, non-owned and hired vehicle insurance in an amount, and with the selfinsuranceretentions,as the CityCouncildetermines to be inthe City’sbest interestsgiven then current market conditions.CHy shall provide Associationwith appropriate Certificatesevidencing compliance with this Section and shall use itsbest efforts to add the Association as an additional insuredon any such policyprovidedthe Citywould incur no additional cost to do so or Association reimburses the cost.
(b) Insurance.

ADMINISTRATION7.

This Agreement willbe administerec by the Director of theCity'sGeneral ServicesDepartment (Director).The Directorshallbe considered the ProjectAdministratorand shallhave the authority to act forCity pursuant to this Agreement. The Project Administrator or his/herauthorized representative shall represent City in allmatters pertainingto the Maintenance. The ProjectAdministrators address, phone number, facsimile number and e- mail address are set forthin Section 9 of thisAgreement. City agrees thateach time the ProjectAdministrator changes, itwillpromptly notifyAssociationof such change, and provideAssociationwith the address, phone number, facsimile number and e-mail address of the new ProjectAdministratorat the time of notificotionof change.

TERMINATION8.
(a) Notice. In the event either party failsor refuses to perform any of the provisions m this Agreement, that partyshallbe deemed to be in defaultinthe performance of thisAgreement. The party not in defaultmay terminate thisAgreement if,withinten (10)days afternotice ofdefault,the partyin default has not cured the default, or if more than ten (10) days are reasonably required to cure the default the party in defaulthas failedto give adequate assurance of due performance withinten (10) days afterreceipt of writtennotice of default,specifying the nature of such default and the steps necessary to cure such default.

Restoration Following Termination. Upon terminationof this Agreement by eitherparty.

Cityagrees to restoretne Propertyto the conditionthatexistedupon the date of the Cit/s inspectionas describedinSubsection3(d) ofthisAgreement The restorationof the Property shallbe completed as quicklyas reasonably practicable,but inno event more than ninety(90)days followingtermination./\ny damage or injuryto Associationproperty,facilities,landscapingor hardscap>ethatisproxmately caused by the City during the restoraton process, or as a resultof any delay in the restorationprocess (for example, plant materialdying as a resultof any irrigation,drainage, or electricalequipment being inoperativedunng the restoration)shallbe repairedor replaced by City.

Survival of Obligations. The commitments and obligationsof the City thatare specifiedin Sections 4(b), 6(a),6(c)and 15 shallsurvivethe terminationof thisAgreement. (b)
(c)

9. NOTICES
All notices, demands, requests or approvals to be given under this Agreement shallbe given in writingand conclusively shall be deemed served when delivered personallyor on the thirdbusiness day alterthe deposit thereofin the United States mail,postage prepaid,firstclass mail, addressed as set forth below or as changed by eitherParty with writtennotice to the otner Parly inthe manner specifiedin thisSection All notices, demands, requests or approvals from Association to City shall be addressed to City,attention “General Services Director" at:
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City of Newport Beach
3300 Newport Boulevard
P. O. 00x1768
Newport Beach. CA 92658-8915
Attn: Director of General Services
Phone: (949) 644-3055
(949)650-0747
[email protected]
Fax:

E-Mail:

All notices,demands, requests or approvalsfrom Cityto Association shall be addressed to Associaton, attention'PropertyManager" at:

Newport Coast Community Association
c/o Ment PropertyManagement
25910 Acero Street, Second Floor
Mission Viejo,CA 92691
Attn. Melodie LaMont
Phone: (949)465-5210
Fax:

E-Mail: [email protected]
(949) 595-2304

10. WAIVER
The waiver by City or Association of any breach of thisAgreement by the other shallnot be deemed to be a waiver of any term,covenant, or conditionor any subsequent breacn

11. PARTIAL INVALIDITY
Ifany term or provisionof thisAgreement isdeclared invalidor unenforceable,the remainder of thisAgreement shall not be affected

12. GOVERNING LAW
I
The laws of the Stateof Californiashallgovern the enforcement and interpretationof ths Agreement. Neither City'sexecutionof thisAgreement nor any consent or approvalgiven by Citypursuant to thisAgreement shall ^ect City'spowers and dutiesas a governmental entity.

13. ENTIRE AGREEMENT: MODIFICATION
I
This Agreement contains the entireunderstanding between the Parties relativeto the subjectmatter. No verbal agreement or implied covenant shall be held to vary the provisionsof thisAgreement. Each Partyhas reliedon itsown examination of thisAgreement, the counsel of itsown advisors, and the warranties, representatiore, and covenants inthisAgreement. The failureor refusalof eitherPartyto read thisAgreement or otherdocuments or to obtain legalor other advice relevantto thisAgreement constHutes a waiver of any objection,contention, or daim that might have been based on such reading, inspection,or advice. No provision of thisAgreement may be amended or varied except by an agreement inwritingsigned by the Partiesor theirrespectiveSuccessors.

14. HEADINGS
The headings and captions of the various sectionsof thisAgreement are forconvenience and ease of reference only and do not define,limit,augment, or describe the scope, content,or intentof thisAgreement. 8-20
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Property Maintenance Agreement

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15. ATTORNEY’S FEES AND COSTS
Should litigationbecome necessary in order to enforce one or more of the terms, conditionsand/or provisionsof thisAg'-eement or with respect to any issue arisingout of this/Agreement,the prevailing partyshallbe entitled to recovery reasonable attorney’sfees and costs.

IN V/ITNESS WHEREOF, the Parties have caused thisAgreement to be executed on the day and year first written above.

CITY OF NEWPORT BEACH
A Municipal Corporation
HomerBludauyCityManager
APPROVED#S TO FORM:

ByBy:
!bber1Burnham, CityAttorney
NEWPORT^OAST COMMUNITY ASSOCIATION
int of the Association Board
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Property Mamterrance Agreement

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EXHIBIT A
Scope of Services
EVERGREEN SLOPES. PARKWAYS. AND MEDIANS
A. Ground cover
Edging and Trimming;
a. Edge as needed to maintain a neat, well-definededge adjacentto walks, curbs,and paved areas,
b. A four(4)inch to six(6)inchbare dirtclearanceshal be maintained around the circumference ofalltrees,signs,and adjacentbuildings,
c Trim ground cover over (our (4) inches in haght at 45' angle. Ground cover should be hand- pruned and should be softinappearance as opposed to hedged.

Fertilization.

A minimum of four (4)times per year (or as needed) per recommendations of soilsreport,using a balanced fertilizerwith Iron or an approved equal program to maintain an attractive,balanced appearance of continualgrowth.

Aerification:

Aerate ground cover areas as requiredto alleviatecompaction and improve water penetration.

Hard Pruning or Mowing:

As directedby Owner's Representative,the contractormay be requiredto mow or hard prune down the heightof the ground cover toapproximatelyone third(1/3)itsheightinthe earlyspring.

Watering,
a. /Ml ground cover areas shallbe uniformlyirrigatedto insure consistent growth and plant coverage,
b. Contractor shallschedule water applicationto produce a deep rooted ground cover using repeat cycles fordeep watering and allowingsoilto dry between waterings(depending on plantvariety) without overwatering

1. 2.
3 4.

5. 6. Weed, Pest and Disease Control;
Contractor shallmaintain a weed, pest,and disease freeground cover and apply allnecessary treatments as required.
a.

B. Shrubs

1. Pruning:

Pruning of shrubs willfallintoone of the followingcategories; Natural Shape - The intentisto emphasize the naturalform of the shrub. Initially“pinchprune" to develop structure,allowingthe individualcharacteristicsof the species to develop.

NaturalHedge - The intentisto develop a loose, informalappearing hedge which requiresonly minimal attentionto keep inshape and size.Initially"pinchprune”todevelop structure,allowing to fillsolidhorizontally.

Formal Hedge - Itis the intentof these shrubs to have straight,crisp edges, initial“pinch pruning’willencourage the shrubs to fillin.

All shrubs shall be pruned as required for safety, removal of broken or diseased branches, general containment or appearance.

Pruning at the correct time of the year is essentialto maximize flowering potential. After flowering,remove any spent blossoms or flowerstalks.

Change in pruning stylewithin thecontractshallbe reviewed and agreed upon by Contractor, Owner and Owner’s Representative priorto commencement of pruning. a.
b.
c.
d.
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Property Maintenance Agreement

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2 Fertilization:
a Fertilizeallshrubs a minimum of four (4)times per year(oras needed) per recommendations of soilsreport using a balanced fertilizerwith Iron or an approved equal program to maintain an attractive,balanced appearance of continualgrowth,
b. Contractor shallbe responsible to apply allmaterialsrequiredto correctmineraldeficiencies affectingplantgrowth. Due to area soilconditions,supplemental feedingof iron may be requiredto prevent chlorosis.

Weed, Pest, and Disease Control:
a Contractor shall maintain a weed, pest, and disease free shrub-bed at alltimes and apply al necessary treatmentsas required,
b. All shrub areas not underplanted with ground cover willbe raked dean a minimum of once per month or as required. Beds with mulch or bark shallbe cleaned by using a blower or other means to remove debris.

3. 4. Watering;
a. Allshrub areas shallbe uniformlyirrigatedto insureconsistentgrowth and plantcoverage, b Contractor shallschedule water applicationto produce a deep rooted ground cover using repeat cydes fordeep watering and allowing soilto dry between waterings(dependingon plantvariety) without overwatering
C. Vines
Paining:
a V^es and espalierplantsshallbe checked and re-tiedas required, b Do not use nailsto secure vines on masonry walls,
c. Prune allvines usingaccepted horticulturalpractices, d Vines shallbe pruned and maintained sc not toobstructfixtures,signs,windows, etc. e. Pruning at the correcttime of year isessentialto maximize floweringpotential.Afterflowering, remove any spent blossoms or flowerstalks.

Fertilization;
Fertilizeallvines a minimum of four (4)times per year (oras needed) per recommendationsofsoils reportusing a balanced fertilizerwith Ironor an approved equal program to maintainan attractive, balanced appearance of continualgrowth.

Watering;
a. Allvines shallbe uniformlyirrigatedto insureconsistentgrowth and plantcoverage b. Contractor shallschedde water applicationto produce a deep rootedground cover using repeat cyclesfordeep wateringand allowingsoiltodrybetween waterings(depending on plantvariety) without overwateraig
Weed, Pest, and Disease Control;
a. Contractor shallmaintain a weed, pest,and disease free vine-bed at ailtimes and apply all necessary treatmentsas required,
b. Allvineplanterareas notunderplantedwithground cover willbe raked clean a minimum of once per month or as required.Beds withmulch or bark shallbe cleaned by using a blower or other means to remove debris.

1. 2.

3. 4.

D. T rees

1. No treework shallbe done withoi4 priorwrittenapprovaland directionfrom Owner's Representative.

All tree work shall be undertaken under the direction and supervisionofa certifiedarborist

2. All trees shall bo maintained in a heahhy, vigorous growingcorrditionatalltimes Alltreesshallbe allowed to grow inand to theirnaturalgeneticform and size. 8-23
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Property MairttenanceAgreermrU

Page 9 ends

Pruning: Under thisspecificationpruning is limitedto thatwhich may be done from the ground or fifteen(15)footwithinthe tree,includingremoval of dead, diseased, crowded, weakly attached, low- vigorbranches and water spots from a tree’scrown or forsafety.Trees should be pruned toallowfor the necessary clearances for pedestrians and vehicle circulation.Allbranches overhanging the curb lineon roadways shallhave fourteen (14) foot clearance,and parkingareas and walkways eight(8) foot clearance.
3,
Under no circumstances shallstrippingof lower branches (“raisingup") of young trees be permitted. Lower branches can be cut off only afterthe tree is able to stand erect without staking or other support
Pruning shallbe done by those experienced and skilledinpruningtechniques.Allcutsshallbe done using proper horticulturalpracticesand in accordance with the I. S. A. Standards of Pruning.

All other tree pruning over fifteen(15) feet,such as annual thinning willbe done under a separate contract. Such “Extra" treework shallbe done onlyby a professionalI.S. A. Certified Arborist.A sample tree shallbe pruned and approved before work is started.

Tree stakes ties,and guys shallbe checked and correctedas needed. Ties willbe adjusted to prevent girdling.Girdlingis unacceptable and the Contractormay be held responsiblefor tree replacement at no additionalcost to the Association. Remove stakes, tiesand guys when no longer needed. Materialfornew treestakes and guys willbe considered extra work.

All new trees shall be staked to allow movement (at least6 inches) by wind. Stakes shallbe removed as soon as treesare deemed sturdyenough. Any treerequiringstakingformore than 12 nwnths afterinstallationshallbe broughtto the attentionof the Owner’s Representative for review and consideration.
a
b.
c.

4. i

5. Apply all chemical controls,such as insecticides,as required to control or prevent pests and diseases.

6. Fertilizealltrees 3 times per year inspring,summer and fall,(oras needed) per recommendations of soils report,using a balanced fertilizerwith Iron or an approved equal program to maintain an attractive,balanced appearance of continualgrowth. Deep rootfeedingor foliarapplicationmay be required. Palm trees shall be fertilizedwith ‘Palm Special" fertilizer,per manufacturers recommended artes,inspring,sumnxjr and fall.

Surface roots in turfup to three (3) inches in diameter which become maintenance or appearance problems willbe removed as required to prevent damage to adjacent paved areas. No more than 50% of the surface roots may be removed at one time to prevent instabilityof the tree. Such conditions that are inherited to the contract will be an exception.

7. 8.

E. Fertilizationof California native plants

1. Californianativeplants,includingtrees,shrubs and ground cover,shouldbe fertilizedtwice peryear inearlyfalland earlyspring.Apply Osmocote 18-6-12inearlyOctober athalfthe recommended labelrate Apply an alternateslow-releaseproductwithlow phosphorus and lessthan 1% iron,In earlyMarch at halfthe recommended label rate.TurtSupreme 16-6-8may be used athalf ratefor the springfeeding. Do not use Osmocote inthe spring,as itreleases too quickly.

I
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Property Maintenance Agreement

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CALIFORNIA NATIVE SLOPES
1 Visualreviewofneed fortrashremovalweekly. Trash removal as needed and as directedby the General ServicesDirectororhisdesignee.
2, Pruning,plantreplacement,and irrigationas needed and as directedby theGeneral ServicesDirector or hisdesignee inordertoretainthe same aestheticsand levelofvegetativecover as originallyintended with the development approvals.

3. Remove non-nativespecies and replantas necessary.
8-25
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Properly Maintenarce Agreement
Page It of IS

EXHIBIT B
Properly Map *
^ NewportRidg^MctaRidg*Araat^ PAAEligMtPropanw*
* The PropertyMaps on these two pages are forillustrativepurposes only. Only eligibleproperties (asdefined)thatare owned or controlledby theNewport Coast Community Association are subjectto thisPropertyMaintenance Agreement. Propertiesowned or controlledby other entitiesyet depicted on these Maps are notincludedwithinthisPropertyMaintenance Agreement. 8-26
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PropertyMaintenatKe Agreerrtent

Page 12 ends

EXHIBIT B (cont’d)
Property Map *
8-27
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PropertyMaintenance Agreement

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EXHIBIT C
Pre-Annexation Agreement (Section14)

14. PROPERTY MAINTENANCE.

The purpose and intentof thisSection is to allowfor City(a) Intent/Public Purpose, maintenance of certainparkways, medians, naturalslopes, and fuel modification zones in the Newport Coast in accordance with qualitystandards in effect as of the Effective Date.

The Partiesagree thatproper maintenance of parkways, medians, naturalslopes,and fuel modificationzones and the rightto protector enhance habitat serves a valuable public purpose. The Parties intend that the City’sobligationto maintain parkways, medians, natural slopes and fuel modifcation zones is contingent upon a request by the property owner and execution of an agreement that,among otherthings,fullyprotectsthe Cityfrom any liabilityrelatedto itsmaintenance unless the damage is proximatelycaused by the Cit/s activenegligence. The Partiesacknowledge thatCity’smaintenance obligationsdo not extend to any landscaping,irrigation,or lightinginor around the entrance pavilions orto any landscaped area withinany community - such as privateparks,privateparkways, or privatemedians on streetsbehind gates.

Section Definitions.For purposes of thisSection,the terms:
"Association" shall mean a residential homeowners’ association or residential community associationwithintheboundariesofthe Property. "Fuel modificationzone" shallmean a slope owned Dy an Association that Isadjacent to, and generallybelow, residentialparcels and that has been planted with fire- resistantvegetationtopreventor inhibitfre damage to structures. "Natural slope" shall mean a slope owned by an Association that has not been improved or containsprimarilynativevegetation,and is generallyadjacent to and below a fuel modification zone.
“Maintain" or “Maintenance" shall mean, in the context of natural slopes, parkways, medians, and fuel modification zones, the irrigation,maintwiance of irrigation equipment, fertlization,general care and replacement of plant material,and the maintenance of electricaland lightingequipment as applicable. “Median" shallmean the area in the center of a public street. “Parkway" shallmean the area between a publicsidewalkand the sheet curb. “Propertyowner" shallmean an Associationwithin theProperly. Itshallnot mean a government, educational,or commercial venturesuch as a school,hotel,timeshare operator,golfcourse, land development company, or retail center.

General Obligations.Cityshall,during the term of thisAgreement, have the obligationto maintainand pay forthe costsofsuch maintenance:
(i) Medians and parkways along publicstreets,
(ii)Naturalslopes or fuelmodificationzones ifand when the propertyowner fullysatisfies the conditionsspecifiedin Subsection (d). Cityshallobtainany permit necessary to conduct any maintenance on any naturalslopethatiswithin the Natural Communities Conservation Plan In no event shallthe Citybe liablefor any slope failureor slope subsidence in any fuel modificationzone unless the failure or subsidence is proximatelycaused by the activenegligenceorwillfulconduct of the City.

City or itscontractorshall maintain allmedians and parkways, and to the extent the propertyowner satisfiesthe conditionsspecifiedin Subsection(d),the naturalslopes,fuel modificationzones, and open space cedicationsand facilities,in a manner that equals or exceeds the m aintenance standards for e ach a rea o rfacilitywhich isin p lace as of the EffectiveDate. Cityshallnot be liableforany loss,claim or damage proximately caused by irrigationof a fuel modificaton zone thatis consistentwith the time and extent of irrigation (b)
(i)
(ii)
(Hi)
(iv)
(v)
(Vi)
(vii)
(c)
I
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Property MairUenance Agreement

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occurringas of the EffectiveDate
(d) Condftions ot City Obligation Regarding Natural $ ooes arxtFuel ModificationZones. City’s obligation to maintain any fuel modification zone or natural slope is contingent on satisfactionof ailof the following conditions:
(i) Written Request. An Association in existence as of the EffectiveDate has, within nine (9) months afterthe EffectiveDate, served City with a writtenrequest to maintainallor a portion of thefuelmodificationzone and/or natural slope;or, for those Associations not in existence as of the Effect ve Date, the Association shall, within nine (9)months of formation,have served the City with a writtenrequest to maintain allor a portion of the fuel modificationzone and/or natural slope within that Association’s boundaries
(ii) Maintenance Agreement. The prooertyowner has executed a writtenagreement (■Maintenance Agreemenr), approved as to form and content by the City Attorney, that specificallyauthorizes City to enter the property to perfomn the maintenance defin^inSubsection(b)ofthisSection,specifiesthe level of maintenance, and authorizes City use of any facilitiesnecessary to provide maintenance. The Maintenance Agreement shall require the City to pay all costs incurred in maintenance of the natural slope, median, parkway, or fuel modification zone, including but not limitedto water ano other necessary utilityservices. The Maintenance Agreement shallconfirm thatthe City isnot liableforany loss,claim or damage, includingslope subsidence or failure,unless proximately caused by the negligence or willfulact of the City or itsofficers,employees, or agents. The Maintenance Agreement shallalso require the property owner to fullycooperate with City and itsofficers,agents, members, employees and contractors with respect to maintenance of the property,
(iii)MaterialDefault. The property owner is not in material default pursuant to the terms and conditionsof the Maintenance Agreement described inSubdivision(S).

Mao. Cityand the Committee shall,withinnine (9)months afterthe EffectiveDate prepare the maps of the fuelmodificationzones and naturalslopes. The maps are forinformation and the failureof a map to depictpropertythatotherwise qualifiesas a fuelmodification zoneornaturalslopeshallnotaffecttheCi^smaintenanceobligations. 1 1
(e)
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PropertyMaintenance Agreement
Pago 15 of 16

EXHIBIT D
Compensation Schedule
(PeriodofMarch 1,2002 through EffectiveDate)
Schedule to be added.
8-30
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EXHIBIT B
Scope of Services
8-31
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EXHIBIT B
Scope of Services
MAINTENANCE SCHEDULEI.

With the exception ofthe work provided inSection II.A.1below, which iscompleted on a weekly basis, the City and Contractor’s performance obligations are based on regularly set intervalsand schedules set forth in the attached map. The Association may request additionalmaintenance outside the regularlyset intervals and schedules which shallbe paid for by the Association and reimbursed to the City. In the event the schedule isadjusted,the Cityshall provide the Association with advanced writtennotice. In no event shallany adjustment in the schedule resultin greater than three-month rotationof each area.

EVERGREEN SLOPES, PARKWAYS, AND MEDIANS
A. Ground cover

1. Mowing Edging and Trimming;
Allturfismowed once per week.a.
b. Maintain a neat, well-defined edge adjacent to walks, curbs, and paved areas.

A four (4) inch to six (6)inch bare dirtclearance shall be maintained around the circumference of alltrees,signs,and adjacent buildings.

Trim ground cover over four(4) inches inheightat 45° angle. Ground cover should be hand pruned and should be soft in appearance as opposed to hedged.
c.
d.

2. Fertilization;
Fertilizationshalloccur at leastfour (4) times per calendar year based on the Maintenance Schedule below or per recommendations of soils report,using a balanced fertilizerwith Ironor an approved equal program to maintain an attractive,balanced appearance of continualgrowth.

3. Aerification;
At leastonce each calendar year, aerate ground cover areas to alleviate compaction and improve water penetration.

4. Hard Pruning;
Once each calendar year based on the Maintenance Schedule below, ground cover shallbe hard pruned to approximately one 8-32
354
third(1/3)of itsheightinthe earlyspring.

5. Watering:
a. All ground cover areas shall be uniformly irrigatedto ensure consistentgrowth and plantcoverage,
b. Each calendar month, it shall be determined based on weather conditions,whether water applicationisnecessary to produce a deep- rooted ground cover and, ifso, repeat cyclesfordeep watering shall be implemented, allowingsoilto dry between waterings(depending on plantvariety)withoutoverwatering.

6. Weed, Pest and Disease Control;Each month. City shall inspect the EligiblePropertytoensure thatweed, pest,and disease-freeground cover is being maintained and based on the Maintenance Schedule below shall take actionas necessary to apply allnecessary treatments as required.

B. Shrubs

1. Pruning: Pruning of shrubs willfallintoone of the followingcategories; a. Natural Shape - The intentis to emphasize the naturalform of the shrub. Initially"pinch prune" to develop structure,allowing the individualcharacteristicsof the species todevelop,
b. Natural Hedge - The intentisto develop a loose, informalappearing hedge which requires only minimal attentionto keep in shape and size. Initially"pinch prune" to develop structure,allowing to fillsolid horizontally.

Formal Hedge - Itisthe intentof these shrubs to have straight,crisp edges. Initial"pinchpruning"willencourage the shrubs to fillin.

Allshrubs shallbe pruned inaccordance with InternationalSociety of Arboriculture(ISA) standards.

2. Fertilization:
a. Fertilizeallshrubs a minimum of four(4)times per year at intervals determined by the Maintenance Schedule below or per
recommendations of soilsreportusing a balanced fertilizerwith iron or an approved equal program to maintain an attractive,balanced appearance of continualgrowth,
b. Contractor shallbe responsibleforapplying allmaterials required to correctmineral deficienciesaffectingplantgrowth. Due to area soil 8-33
355
conditions,supplemental feeding of iron may be required to prevent chlorosis.

3. Weed, Pest, and Disease Control:

Contractor shallreasonably maintain a weed, pest, and disease-free shrub-bed and apply allnecessary treatments as required during its regularlyscheduled maintenance.
a.
b. All shrub areas not underplanted with ground cover will be raked clean a minimum of once per month or during itsregularlyscheduled maintenance. Beds with mulch or bark shall be cleaned by using a blower or other means to remove debris.

4. Watering;
All shrub areas shall be uniformly irrigatedto ensure consistent growth and plant coverage.
a.
b. Contractor shall schedule water application intended to produce a deep-rooted ground cover using repeat cycles for deep watering and allowing soilto dry between waterings (depending on plant variety) without overwatering.

C. Vines

1. Pruning;
Vines and espalier plants shall be checked and re-tied during regularlyscheduled maintenance intervals.

Do not use nailsto secure vines on masonry walls.

Prune allvines using accepted horticulturalpractices.
a.
b.
c.
d. Vines shall be pruned and maintained so not to obstruct fixtures, signs, windows, etc.
e. Pruning at the correct time of year isessentialto maximize flowering potential.Afterflowering,remove any spent blossoms or flower stalks during regularlyscheduled maintenance intervals.

2. Fertilization: Fertilize all vines a minimum of four (4) times per year based on the Maintenance Schedule below or per recommendations of soils report using a balanced fertilizerwith ironor an approved equal program to maintain an attractive,balanced appearance of continualgrowth. 8-34
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3. Watering;
a. All vines shallbe uniformly irrigatedto ensure consistent growth and plant coverage,
b. Contractorshallschedule water applicationto produce a deep-rooted ground cover using repeat cyclesfordeep watering and allowing soil to dry between waterings (depending on plant variety)without overwatering.

4. Weed, Pest, and Disease Control:
a. Contractor shall maintain a weed, pest, and disease-free vine-bed based on the Maintenance Schedule and apply all necessary treatments as required,
b. All vine planter areas not underplanted with ground cover will be raked clean a minimum of once per month or as required.Beds with mulch or bark shallbe cleaned by using a blower or other means to remove debris.

D. Trees

1. Tree work, including but not limited to maintenance, removal and replacement, shallbe agreed upon based upon the Cityand Association’s monthly walkthroughs and writtenfollow-up directiveprovided in Section 8(a) of the FirstAmendment. Alltree work shall be undertaken under the directionand supervision of a certifiedarborist.

2. All trees shallbe maintained in a healthy, vigorous growing condition.All trees shallbe allowed to grow inand to theirnaturalgenetic form and size.

Tree spacing shallcomply with the InternationalSociety of Arboricultural standards.

3. Pruning: Under thisspecificationpruning is limitedto that which may be done from the ground or fifteen(15) footwithinthe tree,includingremoval of dead, diseased, crowded, weakly attached, low- vigor branches and water spots from a tree'scrown or forsafety.Trees should be pruned to allow forthe necessary clearances forpedestrians and vehicle circulation.

All branches overhanging the curb lineon roadways shall have fourteen (14) foot clearance, and parking areas and walkways eight (8) foot clearance.
a. Lower branches can be cut offonly afterthe tree is able to stand erect without staking or other support.
8-35
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b. Pruning shall be done by those experienced and skilledin pruning techniques. Allcuts shallbe done using proper horticulturalpractices and inaccordance with the I.S. A. Standards of Pruning, c. Allother tree pruning over fifteen(15) feet,such as annual thinning willbe done under a separate contract.Such "Extra" tree work shall be done only by a professional I.S. A. Certified Arborist.A sample tree shallbe pruned and approved before work isstarted.

4. Tree stakes, ties,and guying shallbe checked and corrected as needed.

Ties willbe adjusted to prevent girdling.Girdlingis unacceptable and the Contractor may be held responsible for tree replacement at no additional cost to the Association. Remove stakes, ties and guys when no longer needed.

5. All new trees shallbe staked to allow movement (atleast6 inches) by wind.

Stakes shall be removed as soon as trees are deemed sturdy enough. Any tree requiringstaking for more than twelve (12) months after installation shall be brought to the attention of the Parties representatives during monthly walkthroughs forreview and consideration.

6. Apply allchemical controls,such as insecticides,as required to control or prevent pests and diseases.

7. Fertilizealltrees three (3)times per year in spring,summer and fall,(or as needed) per recommendations of soilsreport,using a balanced fertilizer with ironor an approved equal program to maintain an attractive,balanced appearance of continualgrowth. Deep rootfeeding or foliarapplicationmay be required.Palm trees shallbe fertilizedwith "Palm Special" fertilizer,per manufacturers recommended rates,in spring,summer and fall.

8. Surface roots in turfup to three (3) inches in diameter which become maintenance or appearance problems will be removed as required to prevent damage to adjacent paved areas. No more than 50% of the surface roots may be removed at one time to prevent instabilityof the tree.

9. Tree Replacement. For the corner locations at the intersectionsof Newport Coast Drive/Ocean Ridge Drive and Newport Coast DriveA/ista Ridge Road, the City’s future obligation to replace any mature Phoenix Canadensis or Phoenix Dactyliferashallbe likeforlikewith respect to size, however, the cost cap per tree shallnot exceed $40,000. Notwithstanding the foregoing, the Phoenix Canadensis or Phoenix Dactyliferamay be replaced with alternativespecies, mutually agreed to by the Parties,inthe event the species are infected by incurable disease, or invasive insects.

Additionally,the City’sfuture obligation to replace any trees in allother locationsshallbe no largerthan a 48-inch box.
8-36
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E. Fertilization of California Native Plants; California native plants,including trees,shrubs and ground cover, should be fertilizedtwice per year inearlyfall and earlyspring.Apply fertilizerin early October at half the recommended labelrate.Apply an alternateslow-release product with low phosphorus and less than 1% iron,in early March at halfthe recommended label rate. Turf Supreme 16-6-8may be used at halfrateforthe springfeeding. Do not use Osmocote inthe spring,as itreleasestoo quickly.

CALIFORNIA NATIVE SLOPES
Visual review of need for trash removal within the City’s established Maintenance Schedule. Trash removal as needed based on the Contractor’sregularlyscheduled work on the EligibleProperty and as directedby the PublicWorks Directoror his/herdesignee.

Pruning, plant replacement, and irrigationas needed based on the Contractor’sregularlyscheduled work on the Propertyand as directed by the PublicWorks Directoror his/herdesignee to retainthe same aesthetics and levelof vegetativecover as originallyintended with the development approvals.

Remove non-nativespecies and replantas necessary.

For purposes of thisFirstAmendment, “nativeslope” is defined as an area of undeveloped terrainwithina master planned community that maintains itsoriginaltopography and vegetation, but is either:excluded from fuel modification requirements due to itsdistance from structures or lack of wildfireexposure, or Assessed by the AuthorityHaving Jurisdiction(AHJ) and determined to pose minimal wildfirerisk,based on factors such as slope gradient,aspect,vegetationtype,and topographic isolation.

1. 2.

3. 4.

IV. V-DITCHES
The City shallmaintain the V-Ditches within itsmaintenance obligationareas on not less than a quarterlybasis and shallmaintain records of completion of debris removal which may be requested atthe monthly walkthroughs and provided within reasonable timeframes.
8-37
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8-38
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EXHIBIT C
Eligible Property - Property Map
8-39
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8-40
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EXHIBIT C-1
Geospatial Coordinates - of EligibleProperty
TO BE INSERTED]
8-41
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9-1

NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

November 4, 2025
Agenda Item No. 9
ABSTRACT:

The Finance Department prepares quarterly financial reports to review the status of General Fund revenues and expenditures, as well as to monitor budgetary trends in the City of Newport Beach’s (City) other major funds. This report presents revenue, expenditure, and estimated fund balance information for the fourth quarter of FY 2024-

25. In May 2025, an unrestricted General Fund operating surplus of $ 19.2 million was projected for FY 2024-25 based on revenues and expenditures through the third quarter.

At the end of the fourth quarter, the projected unrestricted General Fund operating surplus is $13.8 million. Council Policy F-5 requires that 50% of the surplus be used to address long-term obligations and 50% be used to address infrastructure or neighborhood capital improvements. However, since the City pre-funded surplus funds at the beginning of the fiscal year toward paying down the pension liability, it is recommended that the entire unrestricted year -end surplus be allocated to infrastructure or neighborhood capital improvements.

This report was reviewed and discussed with the Finance Committee on October 16, 2025.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve the one-time waiver of policy elements C and D of City Council Policy F -5 – General Fund Surplus Utilization;
c) Approve Budget Amendment No. 25 -088, authorizing the transfer of $2,789,008.85 from the Water Fund reserves to the General Liability Internal Service Fund (ISF); and d) Approve Budget Amendment No. 26-037, allocating the unrestricted operating surplus for Fiscal Year 2024-25.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason Al-Imam, Finance Director/Treasurer - 949-644-3126, [email protected]
PREPARED BY: Jessica Nguyen, Budget Manager – 949-644-3192, [email protected]
TITLE: Year-End Budget Results and Surplus Allocation
364
Year-End Budget Results and Surplus Allocation
November 4, 2025

Page 2 ends

9-2
DISCUSSION:

Economic Overview
The Newport Beach housing market remains strong and continues to support the City’s revenue base. FY 2024-25 recorded 737 detached single-family home sales, up 5% from the prior year. This modest increase follows the market’s peak in 2021, when home sales exceeded 1,400. The median price of a detached s ingle-family home remained largely stable at $4.2 million for the quarter ending June 30, 2025, just 0.9% below the prior year.

This stability in home sales and home values is significant, as property tax revenue, the City’s largest source of revenue, continues to benefit from the resilient housing market.

Overall, Newport Beach’s economy demonstrates stability, with rising home sales, steady prices, and continued strength in consumer spending. These trends reflect a resilient local economy supported by robust consumer activity, which is a key factor contributing to the City’s fiscal stability.

General Fund Revenues
Overall General Fund revenue growth has outpaced projections that were incorporated into the adopted F Y 2024-25 budget, as well as projections provided at the end of the third quarter. The following table summarizes the changes to projected General Fund unaudited actuals versus the amounts previously projected for the third quarter. Details follow highlighting the reasons for the material variances.

FY 2024-25 Projected General Fund Revenues

*Gross TOT revenues total approximately $40.9 million. Through December 31, 2024, Visit Newport Beach (VNB) received 18% of gross TOT. Beginning January 1, 2025, VNB’s share increased to 23% of hotel TOT and 0% of residential TOT. VNB received approximately $7.7 million, leaving projected net TOT revenues of $33.2 million after amounts remitted to VNB.

Property Tax - Property taxes are the City’s single largest General Fund revenue source and represent approximately 50% of all General Fund revenues. In the third quarter budget update, property tax revenue was projected at $152.6 million. Unaudited actuals 365
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exceeded the projection by $1.6 million, primarily due to higher than expected revenue from supplemental property taxes.

Sales Tax - The second largest funding source for the General Fund is sales tax revenue, making up approximately 15% of General Fund revenues. The City’s sales tax base is largely generated from four industry groups — autos and transportation , general consumer goods, restaurants/hotels and the State & County Pools. Sales tax revenue ended the year at $45.9 million, exceeding projections by $0.7 million or 2%. For the quarter ending March 2025, sales tax revenue was down 1.2% compared to the same quarter in 2024. In contrast, revenue for the quarter ending June 2025 increased 2.9% compared to June 2024. On an annualized basis, growth in sales tax revenue was largely driven by strong consumer spending in key industry groups, including restaurants and hotels, general consumer goods, and the pools, all of which experienced year-over-year increases of 8% to 9%.

Transient Occupancy Tax – The third largest funding source for the General Fund is TOT, making up more than 10% of General Fund revenues. Approximately three-fourths of TOT revenue is derived from hotels, with the remaining balance generated from short- term lodging. TOT revenue exceeded expectations largely due to hotel TOT, which was projected to grow 6% over the prior year but ultimately increased by 7.8%.

All Other Revenue – This category includes all other revenue sources other than the top three (property tax, sa les tax and TOT). All other revenue is made up of other taxes, service fees and charges, parking revenue, licenses and permits, property income, fines and penalties, intergovernmental revenues, investment earnings, and miscellaneous revenues. Material chan ges in projected amounts were made to service fees and charges, parking revenue, fines and penalties, intergovernmental revenues, investment earnings, and miscellaneous revenues.

 Service Fees and Charges consists of plan check fees, recreation classes, emergency medical services fees and numerous other cost -of-service fees.

Services fees and charges exceeded projections by $1.4 million primarily due to higher paramedic service fees ($0.7 million), short-term lodging renewal fees ($0.2 million), and other miscellaneous fees. Paramedic service fees fluctuate annually; in recent years, they have ranged from $3.9 million to $5.2 million. For FY 2024 - 25, $4.5 million was projected, but actual revenue reached $5.2 million. Short-term lodging permit renewal fees also came in higher, reflecting a fee increase approved by the City Council.
 Parking Revenue is derived from General Fund related to metered parking fees that are collected across various parking zones throughout the City. Parking revenue outperformed third quarter projections by $1.1 million (13%), primarily due to higher parking rates and increased utilization.

 Property Income consists of City -owned and managed income -producing properties, long -term ground leases with concessions, restaurants, hotels and other businesses and organizations, as well as rental of City facilities to the public.

Property income exceeded projections by $0.6 million, in part due to several 366
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property transfers in the Beacon Bay area that resulted in higher rents.  Intergovernmental Revenues consists of federal, state and local grant revenues, which includes, but is not limited to, the City’s portion of t he ½ cent sales tax revenue paid to the County for public safety, state mandate reimbursements, reimbursement for strike teams sent to assist with fires, and revenue sharing with the County of Orange under the Waste Disposal Agreement (WDA).

Intergovernmental revenues came in $0.9 million (14%) below projections due to timing differences in grant expenditures and related reimbursements.  Investment Earnings represent income received from investment-related activities in accordance with state laws and intern al policies. General fund investment earnings totaled $4.9 million for the year, $2.9 million above projections, driven by strong performance and a 4.96% rate of return. Earnings were consistent with the prior year and included $1.1 million in unrealized gains.  Miscellaneous Revenues include items not classified under other revenue categories, such as donations and insurance reimbursements for damage to City property. These revenues came in $1.3 million above projections. The largest variance relates to bad debt write -offs, which were budgeted as a $0.5 million reduction in miscellaneous revenue. In practice, receivables that were written off were recorded as reductions to the original revenue accounts rather than the bad debt account. As a result, fewer wri te-offs were recorded under miscellaneous revenue, contributing to higher-than-expected revenues.

General Fund Expenditures
The FY 2024 -25 General Fund operating expenditure budget totals $324 million.

Spending trends in FY 2024 -25 are generally consist ent with prior years and do not indicate any cause for concern. Total projected expenditure savings of $11.8 million are largely attributable to vacancy savings, as well as savings in contract services, maintenance and repair, general expenses, and operating transfers-out categories.

The following table summarizes the expenditure savings by budget category. Details highlighting the reasons for the material variances follow.

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Fiscal Year 2024-25 Projected General Fund Expenditures*

*Unaudited actuals include funds carried over to the next year.

Significant expenditure budget variances are as follows:
 The revised salary and benefits budget totals $187 million. Salary and benefit expenses for the fiscal year totaled $180 million, resulting in savings of $7.0 million.

These savings were primarily due to position vacancies and unspent health benefit allocations.
 The contract services budget shows savings of $ 4.0 million, however a portion of the savings in this category were encumbered contracts and purchase orders that were carried into FY 2025-26. These encumbrances have been incorporated into this table showing the true savings of $2.0 million.
 The grant operating budget reflects $0.7 million in savings, largely due to delays in disbursements from federal agencies for the Buck Gully Hazardous Mitigation project. However, the funds are to be carried forward from FY 2024-25 to FY 2025- 26 and will r emain available until they are received or the grant period officially lapses.
 The utilities budget exceeded the revised budget by $0.1 million, primarily due to higher-than-expected water consumption. This overage is offset by savings within the Public Works department budget; therefore, no budget amendment is requested.
 The supplies & materials and maintenance & repair categories generated total savings of $1 million. Savings in the maintenance & repair category were primarily in accounts related to aut omotive fuel and washing, maintenance and repair of damages, and other maintenance -related activities. Savings in the supplies and materials category were mainly due to library materials and S.W.A.T supplies.  The general expenses category shows savings of $1 million compared with the revised budget. These savings are largely related to operating overhead expenses for the Dove Street property.

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General Fund Sources, Uses, and Projected Surplus

The City remains in excellent financial health. Conservative budgeting and sound financial policies have produced a consistent trend of General Fund operating surpluses and strong reserve levels over several years. The City is well-positioned to continue delivering high-quality services to the community while allocating surplus resources to key priorities each year.

The following table illustrates the prior year sources and uses of funds, current year activity and the projected year-end results.

Fiscal Year 2024-25 Projected General Fund Sources, Uses and Budget Surplus

A $25.7 million operating surplus for the General Fund is projected for FY 2024 -25. This amount is net of non -operating activity, including one -time transfers out of the General Fund and the addition to the Contingency Reserve (pursuant to City Council Policy F -2).

The City Council also approved a budget amendment in FY 2025 -26 that allocates a portion of the projected year-end surplus. Budget Amendment 26-018 appropriated $11.9 million of the surplus for the purchase of real property at 3848 Campus Drive. This use of the General Fund surplus reduces the available unrestricted surplus to $13.8 million.

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Fiscal Year 2024-25 Year-End Surplus $25,714,088
Purchase of Real Property at 3848 Campus Drive (11,936,500) Unrestricted Surplus $13,777,588
Council Policy F -5 requires that 50% of the surplus be used to address long -term obligations and 50% be used to address infrastructure or neighborhood capital improvements. However, since the City pre-funded surplus funds at the beginning of the fiscal year toward paying down the pension liability, it is recommended that the entire unrestricted year -end surplus be allocated to infrastructure or neighborhood capital improvements.

Other Major Funds
Staff have evaluated the fiscal condition of the City’s oth er major operating funds (Tidelands, Water & Wastewater). Variances between budgeted and actual amounts are within reason.

The City accounts for general liability claims through its General Liability Internal Service Fund (ISF). Recently, the ISF paid a large claim related to the Water Utility. Because this claim was paid in FY 2024 -25, a transfer of $2,789,008.85 from the Water Fund to the ISF is required. This transfer will be recorded as an internal service fund charge to the Water Fund, moving the cor responding amount to the General Liability ISF. It is recommended that the transfer be made from Water Fund reserves, which totaled $19.3 million as of June 30, 2025.

Preliminary Unaudited Amounts
The City’s financial records are undergoing a customary au dit review. Therefore, the financial information presented in this report is preliminary in nature and subject to adjustments as the year -end close process continues through December. Any such adjustments are not anticipated to have a material impact on th e financial information presented in this report. If any material adjustments related to F Y 2024-25 are subsequently recorded, any such adjustments will be reported to the Finance Committee.

FISCAL IMPACT:

If the Budget Amendment No. 26-037 is approved, the FY 2024-25 unrestricted General Fund operating surplus, projected to be $13.8 million, will be transferred to the Facilities Financing Plan (FFP) Fund to be allocated in the future to infrastructure or neighborhood capital improvements.

In August 2025, the City Council appropriated $11,936,500 for the potential purchase of real property located at 3848 Campus Drive. Should the City not proceed with the 370
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purchase or should the transaction not be completed, the unused appropriation will be returned to the FFP Fund.

ENVIRONMENTAL REVIEW:

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Budget Amendment No. 25-088
Attachment B – Budget Amendment No. 26-037

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ATTACHMENT A
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ATTACHMENT B
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NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

November 4, 2025
Agenda Item No. 10
ABSTRACT:

At the October 14, 2025 City Council meeting, Councilmember Barto brought forth a Council Policy A1 item requesting consideration of amending the Newport Beach Municipal Code to enhance enforcement of bicycle safety by incorporating several modifications to the existing code. The Bicycle Safety Working Group has now developed and recommends a proposed ordinance to update the City of Newport Beach Municipal Code (NBMC) Bicycles – Registration and Regulations, and a resolution to add more street corridors where sidewalk cycling is allowed. The proposed ordinance and resolution are in response to heightened safety concerns related to the recent proliferation of electric bicycle activity in the public right-of-way and a need to better accommodate individuals of all cycling experience.

RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Introduce Ordinance No. 2025 -35, An Ordinance of the City Council of the City of Newport Beach, California, Repealing and Replacing Chapter 12.56 (Bicycles – Registration and Regulation s) of the Newport Beach Municipal Code, and pass to second reading on November 18, 2025; and
c) Adopt Resolution No. 2025-78, Resolution of the City Council of the City of Newport Beach, California, Designating Sidewalks for Riding Bicycles and Electric Bicycles Pursuant to Section 12.56.030 of the Newport Beach Municipal Code and Rescinding Resolution No. 82-148.

DISCUSSION:

An informal Bicycle Safety Working Group comprised of Mayor Stapleton, Councilmember Weigand, Councilmember Barto and City staff recently undertook review TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311, [email protected]
PREPARED BY: Kevin Riley, Acting City Traffic Engineer - 949-644-3329, [email protected]
TITLE: Ordinance No. 2025 -35 and Resolution No. 2025 -78: Adding Provisions Related to Bicycle and Electric Bicycle Activity in the Public Right-of-Way
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Ordinance No. 2025-35 and Resolution No. 2025-78: Adding Provisions Related to Bicycle and Electric Bicycle Activity in the Public Right-of-Way November 4, 2025

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and discussion of bicycling issues in the City. The major issues discussed include the increase in the use of electric bicycles (with new models continuing to evolve), ways to enhance bicycle and electric bicy cle safety and coordinating education efforts with schools operating within Newport Beach . The working group collaborated over several meetings to develop proposed ordinance changes to Chapter 12.56 (Bicycles - Registration and Regulations ) of the NBMC (Attachment A), and a proposed update to the Sidewalk Cycling Allowed Map (Attachment B) which will add additional street corridors where sidewalk cycling is allowed.

Proposed Ordinance Changes to NBMC 12.56
Chapter 12.56 of the NBMC provides registration and general regulation s on cycling within Newport Beach. Chapter 12.56 was adopted in 1972 with the most recent amendments in 1997. A summary of the areas covered by Chapter 12.56 include definitions limited to bicycles, pedicabs, and surrey cycles; voluntary licensing of bicycles; limitations on cycling on sidewalks ; limitations on the operation of surrey cycles and/or pedicabs; and a general obligation to obey signage. Since that time, a number of changes have occurred in the area of cycling as identified by the Orange County Grand Jury Report on E-Bikes that was presented to the City Council on August 27, 2024. In that report, the Grand Jury made a number of findings including recognition that the majority of Orange County’s 34 cities do not have ordinances or policies in place regulating electric bicycles; the need for consistent and accurate tracking by law enforcement and first responders due to the increased incidents of electric bicycle injuries; and the need for streamlined training and education on electric bicycle use and safety.1 The Bicycle Safety Working Group has worked to identify four areas of enhancements to the NBMC Chapter 12.56 intended to capture electric bicycles within its regulations and improve safety. Specifically, the proposed ordinance would apply to electric bicycles and other motorized conveyance devices to specifically delineate behavior that is unsafe while riding, require helmets for all riders under the age of 18 years old, and provide additional penalties for violations by minors in particular. Specifically, at the discretion of the citing officer, all varieties of bicycles and electric bicycles may be impounded with release only to a responsible adult. Additionally, the penalty provisions would now provide a diversion program directed towards minors who are cited for violations of the chapter. If a bicycle safety training program is successfully completed, the citation may be dismissed.

Proposed Resolution Amend Resolution No. 82-148
NBMC Section 12.56.030 establishes where bicycle riding on a sidewalk is currently allowed in the City pursuant to Resolution No. 82-148. Since its adoption, Newport Beach has experienced further growth. These sidewalks that allow bicycle riding are generally located on major arterials, col lector roads, and dual pedestrian and bicycle paths. As some streets allowing sidewalk cycling have since been updated with on -street bicycle lanes as well, inexperienced cyclists still feel more comfortable riding on the sidewalk and not on the street ad jacent to heavy traffic and high-speed roadways. Staff has identified an additional 23 miles of street segments that would be appropriate for sidewalk cycling

1 This year, the City has undertaken a number of code amendments related to bicycles and electric bicycles including Ordinance Nos. 2025-6 and 2025-29 which prohibits bicycles and electric bicycles on City beaches and at Newport Elementary School. 375
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as an alternative to cycling in the street. An updated map that shows all the street segment sidewalks where cycling will be allowed is attached to the proposed resolution.

FISCAL IMPACT:

There is no significant fiscal impact related to this item. Some additional minor signage and markings will need to be installed to identify the new sidewalks where cycling is allowed or not allowed. The adopted Capital Improvement Budget includes sufficient funding for this purchase. It will be expensed to the Traffic Signage, Striping and Marking project account in the Public Works Department, 01201927-980000-25T03.

ENVIRONMENTAL REVIEW:

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENTS:

Attachment A – Ordinance No. 2025-35
Attachment B – Resolution No. 2025-78
Attachment C – Chapter 12.56 Redline

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ORDINANCE NO. 2025-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA, REPEALING AND
REPLACING CHAPTER 12.56 (BICYCLES

REGISTRATION AND REGULATIONS) OF THE

NEWPORT BEACH MUNICIPAL CODE
WHEREAS, Section 200 of the City Charter, of the City of Newport Beach (“City”),veststhe CityCouncilwith the authorityto make and enforce alllaws, rules and regulationswith respect to municipal affairssubject only to the restrictionsand limitationscontained in the City Charter and the State Constitution,and the power to exercise,or act pursuant to any and allrights,powers, and privilegesor procedures grantedorprescribedby any law oftheStateofCalifornia;
WHEREAS, Chapter 12.56 (Bicycles- Registrationand Regulations) of the Newport Beach MunicipalCode (“NBMC”) regulates theuse of bicycleswithinthe city; WHEREAS, electricbicycles (with new models continuing to emerge) have become an increasinglypopular mode oftransportation,but are not currentlyaddressed inChapter 12.56 (Bicycles- Registrationand Regulations); WHEREAS, the increased use of electricbicycles has contributed to a rise in accidentsand injuries,creatinga need to update localregulationsto enhance the safety of pedestrians,cyclists,and motorists;and
WHEREAS, the City Council desires to repeal Chapter 12.56 (Bicycles - Registrationand Regulations)initsentiretyand adopt a new Chapter 12.56 (Bicycles- And SimilarDevices - Registrationand Regulations),as provided herein.

NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows:

Chapter 12.56 (Bicycles- Registrationand Regulations)of theSection 1:

Newport Beach MunicipalCode ishereby repealedinitsentiretyand replaced with the provisionsset forthin Exhibit“A,"which isattachedhereto and incorporated herein by this reference.

Section 2: The City’sTrafficEngineer is hereby directedto erect or place appropriatesignsgivingnoticeofthe regulationsimposed by thisordinance. 35 ATTACHMENT A
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Ordinance No. 2025-

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Section 3: The recitalsprovided inthisordinance are true and correct and are incorporatedintothe substantiveportionofthisordinance.

If any section,subsection,sentence, clause or phrase of thisSection 4:
ordinance isforany reason held to be invalidor unconstitutional,such decision shall not affectthe validityor constitutionalityof the remaining portions of this ordinance. The CityCouncilhereby declaresthatitwould have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespectiveof the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

The City Council finds the introduction and adoption of thisSection 5:
ordinance isnot subjectto the CaliforniaEnvironmental QualityAct (“CEQA”) pursuant to Sections 15060(c)(2)(theactivitywillnot resultin a director reasonably foreseeable indirectphysicalchange in the environment) and 15060(c)(3)(the activityis not a projectas defined in Section 15378) of the CEQA Guidelines,California Code of Regulations,Title14, Division6, Chapter 3, because ithas no potentialfor resultingin physicalchange tothe environment,directlyor indirectly.

Except as expressly modified in thisordinance, allother sections.Section 6:
subsections, terms, clauses and phrases set forthinthe NBMC shallremain unchanged and shall be in fullforce and effect.
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Ordinance No. 2025-

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The Mayor shallsign and the CityClerk shallattestto the passageSection 7:
of thisordinance. The CityClerk shallcause the ordinance,or a summary thereof,to be publishedpursuantto CityCharter Section414. This ordinance shallbe effectivethirty (30)calendar days afteritsadoption.

This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach heldon the 4th day of November, 2025, and adopted on the 18th day of November, 2025, by the followingvote,to-wit;
AYES:

NAYS:

ABSENT:

Joe Stapleton, Mayor
ATTEST:

Lena Shumway, City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY’S OFFICE
Aaron C. Flaito,CityAttorney
ExhibitA - Chapter 12.56 (Bicyclesand SimilarDevices
-
Registrationand Regulations)
Attachment(s):
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EXHIBIT A
Chapter 12.56
BICYCLES AND SIMILAR DEVICES—REGISTRATION AND REGULATIONS Sections:

12.56.010 Definitions.

12.56.025 Voluntary Licensing.

12.56.030 Operating on Sidewalks.

12.56.040 Operating a Surrey Cycle or Pedicab.

12.56.050 Designation of BicycleLanes.

12.56.060 Safe Operation.

12.56.070 Placement of Appropriate Signs.

12.56.080 Penalties,Impoundment and Diversion.

12.56.010 Definitions.

As used in this chapter, the following terms and words shall have the following meanings;
“Bicycle”has thesame meaning as definedinCaliforniaVehicle Code Section 231. “Bicyclelane”means a portionof a roadway thathas been designated by striping, signage,orpavement markingsforthepreferentialor exclusive use of bicycles. “Electricbicycle”has the same meaning as definedin California Vehicle Code Section 312.5.
“Electricallymotorized board” has the same meaning as defined in California Vehicle Code Section 313.5.
“Motorizedbicycle”has the same meaning as defined in California Vehicle Code Section 406.
“Motorized scooter” has the same meaning as defined in California Vehicle Code Section 407.5.
“Motorized wheeled conveyance” means any electricbicycle,electricallymotorized board, motorized bicycle,or motorized scooter, or any similarelectricor combustible motorized wheeled conveyance.
“Pedicab” has the same meaning as defined inCaliforniaVehicle Code Section 467.5. 10-7
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“Publicplaza”means an open publicarea thatisowned or controlledby the State,the County, the City,or otherpublicentitythathas been physicallyimproved, which allows access to the beach, a boardwalk, or public pier,and where people can gather. “Publicrights-of-way”or “publicright-of-way”means a public roadway, highway, street, sidewalk,path,trail,plaza, bicyclelane,boardwalk, or alleyway that islocated withinthe jurisdictionalboundariesofthe Cityand subjecttothe City’sregulatoryauthority. “Surrey cycle”means a bicycle or electricbicyclewith seating for one (1) or more persons which iswhich has four(4)or more wheels.

12.56.025 Voluntary Licensing.

A. Any person who isa residentofthe Citymay applyto the Police Department for a bicycle or electricbicycle license.Motorized bicycles shall be licensed by the Department of Motor Vehiclesand require aDriver’sLicense to operate.

B. Fees forbicycleor electricbicyclelicenseissuance or renewal, shall be established by resolutionofthe CityCouncil.Fees shallbe waived for all individuals who obtain a bicycleorelectricbicyclelicenseor renewal ata City sponsored bicycle safetyprogram.

12.56.030 Operating on Sidewalks.

A. Prohibition.No person shalloperate or ridea bicycle or electricbicycle upon any sidewalk except where such operationisspecificallydesignated by resolutionof the City Council or as otherwise authorized in subsection (B).

B. Exceptions.The provisionsofthissectionshallnot apply to:

1. A mobilityaid used by a person to assist with adisability.

2. Tricycleswhich measure lessthan one ofthe following:
a. Eighteen (18)inches from ground leveltothe neck joint, b. Twenty-four (24)inches inwidth measured from the outer rear wheels, c. Eighteen (18)inches infronttirediameter,or
d. Twelve (12) inches in reartirediameter.

3. Any bicycle orelectricbicycleoperated by a Cityemployee or contractorwhen actingwithinthe course and scope of hisor her employment.

4. Sidewalks fronting residentialdwelling units in residential neighborhoods, unless otherwise signed or marked.

12.56.040 Operating a Surrey Cycle or Pedicab.

A. No person shalloperate or ridea surrey cycle or pedicab upon any sidewalk, boardwalk or any publicpierinthe City.
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B. Any person who operatesa surreycycleor pedicab rentalservice,shop or facility must informeach person who rents a surrey cycle or pedicab at the time of the rental,in writing, ofthe restrictionscontained inthissection.Each rentalsurrey cycle or pedicab shallbe posted to clearlyinform each riderof the particularareas in the City where surrey cyclesand pedicabs are prohibited.

C. Any person who operates a surreycycleor pedicab rentalservice,shop or facility, shallaffixto each rented surrey cycle or pedicab, a flag of sufficientsize and color to increasevisibilityof the surreycycle or pedicab.The flag,which shallbe of international orange or similarcolor,and of sufficientsizeto enhance the visibilityof the surrey cycle or pedicab,shallbe affixedso thatitreaches three(3)feet above the highest portionof the surrey cycle or pedicab.

12.56.050 Designation of Bicycle Lanes.

The CityTrafficEngineer isauthorizedto designatebicycle lanes on streetsand shall mark and signthem inconformance withCaliforniaVehicleCode Section 21400.

12.56.060 Safe Operation.

A. No person shalloperate or ridea motorized wheeled conveyance upon any public right-of-way,or withinany publicpark in a manner that is unsafe or that creates an unreasonable riskof injury toany person or damage to any property.

B. Examples of operatingor ridinginan unsafe manner include, but are not limitedto, the followingactions:

1. Riding on a sidewalk designated as permissiblewithout due caution for pedestrians,which shallinclude,but not be limitedto, weaving between pedestrians, operatingan electricbicycleatfullpower on crowded sidewalks, ridingwhile distracted, or riding atnightwithoutlights.

2. Ridingon a publicright-of-wayagainstthe flowof traffic.

3. Failingto yield to vehicles or pedestrians when required by the California Vehicle Code.

4. Intentionallyswerving or ridingaround stopped or slowed traffic.

5. Carrying passengers on bicyclesor electricbicyclesnot designed or equipped for multipleriders.

6. Disobeying posted trafficsigns,pavement markings or trafficcontrolsignals.

7. Ridingwithouta properlyfittedand fastened helmet when under the age of 18.

8. Intentionallyliftingone or more wheels offthe ground while riding. 10-9
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9. Riding on public right-of-wayat a speed greater than reasonable or prudent under the existingconditions, orat a speed which endangers the safety of persons or property.

10. Failingto utilizea designated bicyclelane when signs are posted requiringsuch use.

Placement of Appropriate Signs.12.56.070
Whenever thisCode or any ordinance or resolutionofthe City designates any portionof a sidewalk to allow cycling,the City TrafficEngineer shall place and maintain signs giving noticethereof.

Penalties, Impoundment, and Diversion.12.56.080
A. Unlawful Acts. Itshall be unlawful for any person to violateany provisions of,or to failto comply with,any ofthe requirementsof thischapter.

B. Enforcement and Impoundment. In additionto the fines and penalties that may be assessed to minor pursuant to this Code, the Chief of Police or any officersof the Newport Beach PoliceDepartment charged with enforcingthis chapter, may impound the motorized wheeled conveyance operated in violationof this chapter. Upon impoundment of a motorized wheeled conveyance, the minor shall be provided with writtennoticethat possession of the impounded motorized wheeled conveyance shall be retained untilreleased to a responsible adult. Motorized wheeled conveyances impounded and retainedby the PoliceDepartment formore than ninety (90) days shall be deemed abandoned and may be disposed of as restrictedby CivilCode Sections 2080.1, 2080.2, 2080.3, 2080.4 and 2080.5. The responsibleadult shall be responsible forany impound feesadopted by resolutionofthe CityCouncil.

C. DiversionProgram. The Chief of Policeshallestablishand administer a motorized wheeled conveyance diversionprogram designed to educate violatorson safe riding practicesand applicabletrafficlaws. Participationin the diversion program shall be offered to minors who are first-timeoffenders and may, in the discretionof the Chief of Police,be offeredto other violators.Ifthe diversionprogram is successfullycompleted by the violator,or in the case of a minor, by the minor and the minor’s parent or guardian, theCityAttorneyisauthorizednotto filethe citation,dismiss the citationand waive any penaltiesrelatedthereto.The diversionprogram shall include,but not be limitedto, instructionon; (1) trafficlaws applicableto the use of motorized wheeled conveyances: (2) safe and courteous ridingpractices;(3) the proper use of safety equipment; and (4) the responsibilitiesof cyclistsin shared public spaces. A fee for participationin the diversionprogram shallbe establishedby resolution of the City Council.
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RESOLUTION NO. 2025-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWPORT BEACH, CALIFORNIA, DESIGNATING

SIDEWALKS FOR RIDING BICYCLES AND ELECTRIC
BICYCLES PURSUANT TO SECTION 12.56.030 OF THE

NEWPORT BEACH MUNICIPAL CODE AND RESCINDING
RESOLUTION NO. 82-148
WHEREAS, Section 200 of the City Charter, of the City of Newport Beach (“City”),veststhe CityCouncilwith the authorityto make and enforce alllaws, rules and regulationswith respect to municipal affairssubject only to the restrictionsand limitationscontained in the City Charter and the State Constitution,and the power to exercise,or act pursuant to any and allrights,powers, and privilegesor procedures grantedor prescribedby any law ofthe StateofCalifornia; WHEREAS, Section 12.56.030 (Operating on Sidewalks) of the Newport Beach MunicipalCode (“NBMC”) authorizesthe City Council to designate sidewalks where bicyclesare permitted;
WHEREAS, the City Council designated sidewalks where riding bicycles is permissiblein1982 pursuantto ResolutionNo. 82-148;
WHEREAS, Newport Beach has grown dramaticallysince 1982 thus warranting an update to the map identifyingsidewalks where cyclingis permissible (“Sidewalk Cycling Map”); and
WHEREAS, the City’sTrafficEngineer prepared an updated Sidewalk Cycling Map which isattachedheretoas Exhibit“A,”and incorporatedherein by thisreference to reflectthe sidewalks where cycling is permissible subject to compliance with all applicableprovisionsofthe NBMC and VehicleCode.

NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:

Section 1: The City Council hereby rescinds Resolution No. 82-148 and approves the Sidewalk Cycling Map attached hereto as Exhibit“A,” updating the sidewalks where cyclingon sidewalks ispermissiblesubject to compliance with allother applicablelaws.
78 ATTACHMENT B
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Resolution No. 2025-

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The City Council findsthe adoption of thisresolutionis not subject to the CaliforniaEnvironmental QualityAct (“CEQA”) pursuant to Section 15060(c)(2) of the CaliforniaCode of Regulations,Title14, Division6, Chapter 3, (“CEQA Guidelines”) because the adoption of this resolution will not result in a direct or reasonably foreseeable directphysicalchange to the environment.

Section 2:

The recitals in this resolution are true and correct and areSection 3:
incorporatedintothe operativepartof thisresolution.

If any section, subsection, sentence, clause or phrase of this resolutionis,for any reason, held to be invalidor unconstitutional, such decision shall not affectthe validityor constitutionalityof the remaining portionsof thisresolution.The City Council hereby declares that itwould have passed this resolution, and each section,subsection, sentence, clause or phrase hereof, irrespectiveof the factthat any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 4:

This resolutionshall take effect immediately upon itsadoption by the CityCouncil,and the CityClerk shallcertifythe vote adopting the resolution.

Section 5:

ADOPTED this4th day of November, 2025.

Joe Stapleton
Mayor
ATTEST:

Lena Shumway
City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY’S OFFICE
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ExhibitA - Sidewalk Cycling MapAttachment:
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EXHIBIT A
Sidewalk Cycling Map
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Exhibit A
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Sidewalk Cycling Allowed
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Sidewalk CyclingAllowed
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Chapter 12.56
BICYCLES AND SIMILAR DEVICES—REGISTRATION AND REGULATIONS Sections:

12.56.010 Definitions.

12.56.025 Voluntary Licensing.

12.56.030 Operating Bicycle on SidewalkSidewalks.

12.56.040 Operating a Surrey Cycle or Pedicab.

12.56.050 Designation of Bicycle Lanes.

12.56.060 Obedience to SignsSafe Operation.

12.56.070 Placement of Appropriate Signs.

12.56.080 Motorized BicyclesPenalties, Impoundment and Diversion.

12.56.010 Definitions.

As used in this chapter, the following terms and words shall have the following meanings:
“Bicycle” has the same meaning as defined in California Vehicle Code Section 231. “Bicycle lane” means a portion of a roadway that has been designated by striping, signage, or pavement markings for the preferential or exclusive use of bicycles. “Electric bicycle” has the same meaning as defined in California Vehicle Code Section 312.5.
“Electrically motorized board” has the same meaning as defined in California Vehicle Code Section 313.5.
“Motorized bicycle” has the same meaning as defined in California Vehicle Code Section 406.
“Motorized scooter” has the same meaning as defined in California Vehicle Code Section 407.5.
“Motorized wheeled conveyance” means any device upon electric bicycle, electrically motorized board, motorized bicycle, or motorized scooter, or any similar electric or combustible motorized wheeled conveyance.
“Pedicab” has the same meaning as defined in California Vehicle Code Section 467.5. “Public plaza” means an open public area that is owned or controlled by the State, the County, the City, or other public entity that has been physically improved, which a person may ride, which is propelled by human power through a system of belts, chains or gearsallows access to the beach, a boardwalk, or public pier, and which has two wheels at least twenty (20) inches in diameterwhere people can gather.

ATTACHMENT C
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“Public rights-of-way” or “public right -of-way” means a public roadway, highway, street, sidewalk, path, trail, plaza, bicycle lane, boardwalk, or alleyway that is located within the jurisdictional boundaries of the City and a frame size of at least fourteen (14) inches.subject to the City’s regulatory authority.
“Pedicab” means any device with seating for one or more persons which is propelled by human power through a system of peddles, belts, chains or gears, and which has three wheels.
“Surrey cycle” means any devicea bicycle or electric bicycle with seating for one (1) or more persons which is propelled by human power through a system of peddles, belts, chains or gears, and which has four wheels. (4) or more wheels.

12.56.025 Voluntary Licensing.

A. Any person who is a resident of the City may apply to the Police Department for a bicycle or electric bicycle license. Motorized bicycles shall be licensed by the Department of Motor Vehicles and require a Driver’s License to operate.

B. Fees for bicycle or electric bicycle license issuance or renewal, shall be established by resolution of the City Council. Fees shall be waived for all individuals who obtain a bicycle or electric bicycle license or renewal at a City sponsored bicycle safety program.

12.56.030 Operating Bicycle on Sidewalk.Sidewalks.

A. Prohibition. No person shall operate or ride a bicycle or electric bicycle upon any sidewalk in except where such operation is specifically designated by resolution of the City. Council or as otherwise authorized in subsection (B).

B. Exceptions. The provisions of this section shall not apply to:

1. Sidewalks on which bicycles are permitted pursuant to a resolution adopted by the City Council;

2. Tricycles, wheelchairs, or wheeled devices operated by the disabled or the elderly;

3. Rollerskates, rollerblades or skateboards or similar devices, except when operation is prohibited by the provisions of Chapter 12.57 of this Code;

41. A mobility aid used by a person to assist with a disability.

2. Tricycles which measure less than one of the following:
a. Eighteen (18) inches from ground level to the neck joint, b. Twenty-four (24) inches in width measured from the outer rear wheels, c. Eighteen (18) inches in front tire diameter, or
d. Twelve (12) inches in rear tire diameter.
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5. To a 3. Any bicycle or electric bicycle operated by any peace officer employed by the a City of Newport Beach andemployee or contractor when acting within the course and scope of his or her employment.

4. Sidewalks fronting residential dwelling units in residential neighborhoods, unless otherwise signed or marked.

12.56.040 Operating a Surrey Cycle or Pedicab.

A. No person shall operate or ride a surrey cycle or pedicab upon any sidewalk, boardwalk or any public pier in the City.

B. Any person who operates a surrey cycle or pedicab rental service, shop or facility must inform each person who rents a surrey cycle or pedicab at the time of the rental, in writing, of the restrictions contained in this section. Each rental surrey cy cle or pedicab shall be posted to clearly inform each rider of the particular areas in the City where surrey cycles and pedicabs are prohibited.

C. Any person who operates a surrey cycle or pedicab rental service, shop or facility, shall affix to each rented surrey cycle or pedicab, a flag of sufficient size and color to increase visibility of the surrey cycle or pedicab. The flag, which shall b e of international orange or similar color, and of sufficient size to enhance the visibility of the surrey cycle or pedicab, shall be affixed so that it reaches three (3) feet above the highest portion of the surrey cycle or pedicab.

12.56.050 Designation of Bicycle Lanes.

The City Traffic Engineer is authorized to designate bicycle lanes on streets and shall mark and sign them in conformance with California Vehicle Code Section 21400.

12.56.060 Obedience to SignsSafe Operation.

A. No person shall operate or ride a motorized wheeled conveyance upon any public right-of-way, or within any public park in a manner that is unsafe or that creates an unreasonable risk of injury to any person or damage to any property.

When signs are erected on any street or sidewalk giving notice that a portion of that street or sidewalk has been designated as a bicycle lane, no person shall drive, park, or operate any vehicle or any bicycle or other wheeled device or conveyance in any manner contrary to the directions posted on such signs.

B. Examples of operating or riding in an unsafe manner include, but are not limited to, the following actions:

1. Riding on a sidewalk designated as permissible without due caution for pedestrians, which shall include, but not be limited to, weaving between pedestrians, operating an electric bicycle at full power on crowded sidewalks, riding while distracted, or riding at night without lights.
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2. Riding on a public right-of-way against the flow of traffic.

3. Failing to yield to vehicles or pedestrians when required by the California Vehicle Code.

4. Intentionally swerving or riding around stopped or slowed traffic.

5. Carrying passengers on bicycles or electric bicycles not designed or equipped for multiple riders.

6. Disobeying posted traffic signs, pavement markings or traffic control signals.

7. Riding without a properly fitted and fastened helmet when under the age of 18.

8. Intentionally lifting one or more wheels off the ground while riding.

9. Riding on public right -of-way at a speed greater than reasonable or prudent under the existing conditions, or at a speed which endangers the safety of persons or property.

10. Failing to utilize a designated bicycle lane when signs are posted requiring such use.

12.56.070 Placement of Appropriate Signs.

Whenever this Code or any ordinance or resolution of the City designates any portion of a street or sidewalk as a bicycle laneto allow cycling, the City Traffic Engineer shall place and maintain signs giving notice thereof, and no such regulation shall be effective unless such signs are in place. .

12.56.080 Motorized Bicycles Penalties, Impoundment, and Diversion.

The licensing
A. Unlawful Acts. It shall be unlawful for any person to violate any provisions of, or to fail to comply with, any of the requirements of this chapter are .

B. Enforcement and Impoundment. In addition to the fines and penalties that may be assessed to minor pursuant to this Code, the Chief of Police or any officers of the Newport Beach Police Department charged with enforcing this chapter, may impound t he motorized wheeled conveyance operated in violation of this chapter. Upon impoundment of a motorized wheeled conveyance, the minor shall be provided with written notice that possession of the impounded motorized wheeled conveyance shall be retained until released to a responsible adult . Motorized wheeled conveyances impounded and retained by the Police Department for more than ninety (90) days shall be deemed abandoned and may be disposed of as restricted by Civil Code Sections 2080.1, 2080.2, 2080.3, 2080.4 and 2080.5. The responsible adult shall be responsible for any impound fees adopted by resolution of the City Council.

Deleted Cells
Code Section 406. traffic laws. Participation in the diversion program shall be offered to minors who are first -time offenders and may, in the discretion of the Chief of Police, be offered to other violators. If the diversion program is successfully completed by the violator, or in the case of a minor, by the minor and the minor’s parent or guardian, the City Attorney is authorized not to file the citation, dismiss the citation and waive any penalties related thereto . The diversion program shall include, but not be limited to, instruction on: (1) traffic laws applicable to the use of motorized wh eeled conveyances; (2) safe and courteous riding practices; (3) the proper use of safety equipment; and (4) the responsibilities of cyclists in shared public spaces. A fee for participation in the diversion program shall be established by resolution of the City Council.

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NEWPORT BEACH

City Council Staff Report

COUNCIL STAFF REPORT

CITY OF

November 4, 2025
Agenda Item No. 11
ABSTRACT:

On October 14, 2025, the City Council created t he Newport Beach Police Headquarters Assessment Committee by adoption of Resolution No. 2025 -65. As directed by the resolution, Mayor Joe Stapleton is appointing Councilmembers Michelle Barto, Noah Blom, and Sara J. Weber to serve on the Committee. For the City Council’s consideration is confirmation of those appointments.

DISCUSSION:

At its meeting on October 14, 2025, the City Council considered the creation of the Newport Beach Police Headquarters Assessment Committee (Committee) to evaluate potential sites and to assess the feasibility and cost and design op tions for a new headquarters for the Newport Beach Police Department.

After discussion and by a vote of 5 ayes, 1 no and 1 abstention, the City Council adopted Resolution No. 2025 -65 creating the Committee with a membership of three Councilmembers (Attachment A).

Mayor Joe Stapleton has identified Councilmembers Michelle Barto, Noah Blom and Sara J. Weber to serve on the Committee.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager - 949-644-3001, [email protected]
PREPARED BY: Benjamin M. Zdeba, AICP, Planning Manager - 949-644-3253, [email protected]
TITLE: Confirmation of Appointments to the Newport Beach Police Headquarters Assessment Committee
393
Confirmation of Appointments to the Newport Beach Police Headquarters Assessment Committee
November 4, 2025

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FISCAL IMPACT:

There is no fiscal impact related to this item.

ENVIRONMENTAL REVIEW:

Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activi ty is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

NOTICING:

The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).

ATTACHMENT:

Attachment A – Resolution No. 2025-65
394
Attachment A
Resolution No. 2025-65
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RESOLUTION NO. 2025- 65

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF NEWPORT BEACH, CALIFORNIA, CREATING THE

NEWPORT BEACH POLICE HEADQUARTERS

ASSESSMENT COMMITTEE
WHEREAS, Section 200 of the City Charter, of the City of Newport Beach City"), vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the City Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges or procedures granted or prescribed by any law of the State of California; WHEREAS, at its meeting on September 23, 2025, the City Council voted to consider the formation of an ad hoc committee to evaluate potential sites and assess the feasibility, cost, and design of constructing a new Newport Beach Police Department NBPD") headquarters;
WHEREAS, the current NBPD headquarters, located at 870 Santa Barbara Drive, was constructed in 1973 and no longer adequately meets the operational needs of the NBPD;
WHEREAS, the City's Public Works Department completed a use survey of the existing NBPD headquarters, along with a comprehensive needs assessment, to evaluate current space utilization and future requirements; WHEREAS, the use survey determined that the existing facility comprises 49,284 gross square feet, while the needs assessment concluded that a new headquarters should be a minimum of 73, 000 square feet to adequately accommodate the Patrol Division and include a properly designed firearms training and shooting range; and
WHEREAS, the City Council desires to create the Newport Beach Police Headquarters Assessment Committee to evaluate potential sites and assess the feasibility, cost and design options for a new NBPD headquarters.

NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
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Resolution No. 2025- 65

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Section 1: The City Council hereby creates the Newport Beach Police Headquarters Assessment Committee (" Committee"), the purpose of which shall be to evaluate potential sites and assess the feasibility, cost and design of constructing a new Newport Beach Police Department headquarters.

Section 2: The Committee shall be an ad hoc advisory committee. The term, appointment process, membership, responsibilities, and expiration shall be done in conformance with this resolution and Attachment 1, which is incorporated herein by this reference.

Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative portion of this resolution.

Section 4: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (" CEQA") pursuant to Sections 15060( c)(2) the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060( c)( 3) ( the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
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Resolution No. 2025- 65

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Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.

ADOPTED this 14th day of October, 2025.

OA
Joe St plet
Mayor
ATTEST: O t
Molly Perry ry IC,
Interim City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY' S OFFICE
AaranC. HarpCity
AttorneyAttachment
1: Descriptionof theNewportBeach Police HeadquartersAssessment Committee 11-6
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ATTACHMENT 1

NEWPORT BEACH POLICE HEADQUARTERS ASSESSMENT COMMITTEE
AUTHORIZATION: Established by Resolution No. 2025- 65 adopted on October 14, 2025.

MEMBERSHIP: Three ( 3) Councilmembers appointed by the Mayor and confirmed by the entire City Council.

MEMBERSHIP TERM: Membership shall be indefinite, pending expiration or termination of the Committee. Committee members
shall serve at the pleasure of the City Council.

MEETINGS: Committee meetings will be held as necessary or convenient for the Committee.

PURPOSE & A. Evaluate potential sites for a new Newport Beach RESPONSIBILITIES: Police Department station headquarters and provide recommendations to the City Council;
B. Assess the feasibility, cost and design of
developing a new Newport Beach Police
Department station headquarters and provide
recommendations to the City Council; and
C. Such other related matters as directed by the City
Council.

EXPIRATION: The Committee shall expire upon making its
recommendations to the entire City Council at a
noticed public meeting of the City Council, or
December 31, 2028, whichever is earlier.
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STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.

CITY OF NEWPORT BEACH }
I, Molly Perry, Interim City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2025-65 was duly introduced before and adopted by the City Council of said City at a regular meeting heldonthe141hdayofOctober, 2025, andthatthesamewasso passedandadoptedbythefollowingvote, to wit:

AYES: Mayor Joe Stapleton, Mayor Pro Tern Lauren Kleiman, Councilmember Noah Blom, Councilmember Michelle Barto, Councilmember Robyn Grant, Councilmember Sara J.

Weber, Councilmember Erik Weigand
NAYS: None
INWITNESSWHEREOF, Ihavehereuntosubscribedmynameanda!dTXpsktj,-jofficialseal of saidV /P' City this 15thday of October, 2025. E Molly
Perry Interim
City C rk City
of NewportBeach, California
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Newport Beach City CouncilNovember 4, 2025

Newport Beach City Council
November 4, 2025