Agenda packet — Orange City Council, January 11, 2022 (part 1 of 2)

Thomas R. Hatch
Interim City Manager
Gary A. Sheatz
City Attorney
Pamela Coleman
City Clerk
MARK A. MURPHY
Mayor

KIMBERLEE NICHOLS
Mayor pro tem

CHIP MONACO
Councilmember

ARIANNA BARRIOS
Councilmember, District 1

JON DUMITRU
Councilmember, District 2

KATHY TAVOULARIS
Councilmember, District 3

ANA GUTIERREZ
Councilmember, District 5
AGENDA
City Council
January 11, 2022
5:00 PM Employee Recognition
5:15 PM Closed Session
6:00 PM Regular Session
City Council Chamber
300 E. Chapman Avenue
Orange, CA 92866
The City of Orange City Council welcomes you to this meeting and encourages your participation. Regular City Council meetings are held on the second Tuesday of each month at 6:00 p.m.

COVID-19 NOTICE
In compliance with California Department of Public Health requirements, masks are required in any indoor space for everyone, regardless of vaccination status.

Agenda Information
The agenda contains a brief general description of each item to be considered. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda. The agenda and supporting documentation is available after 4:00 p.m. on the Thursday prior to the Council meeting on the City's website at www .cityoforange.org, at the City Clerk's Office located at 300 E. Chapman Avenue, and at the Main Public Library located at 407 E. Chapman Avenue. Written materials relating to an item on the agenda that are provided to the City Council after agenda packet distribution and within 72 hours before it is to consider the item will be made available for public inspection in the City Clerk ’s Office during normal business hours; at the City Council meeting; and made available on the City's website.

Public Participation
Regular meetings are televised live on Spectrum Cable Channel 3 and AT&T U -verse Channel 99, and streamed live and on-demand on the City's website at www.cityoforange.org.

Pursuant to Government Code Section 54954.3, members of the public may address the City Council on any agenda item before or during Council ’s consideration of the item, and on any other matters within the City Council’s jurisdiction by using any of the following methods:
1) In-Person
To speak on an item on the agenda, complete a speaker card indicating your name and address, and identifying the agenda item number or subject matter you wish to address. The card should be given to the City Clerk prior to the start of the meeting. General comments are received during the “Public Comments ” section at the beginning of the Regular Session. No action may be taken on off -agenda items unless

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1 City Council Agenda January 11, 2022
authorized by law. Public Comments are limited to three (3) minutes per speaker unless a different time limit is announced. It is requested that you state your name for the record, then proceed to address the City Council. All speakers shall observe civility, decorum, and good behavior. 2) Written Public Comments via email or eComment
Members of the public can submit their written comments electronically for City Council consideration by emailing them to CCpubliccomment@cityoforange .org with the subject line “Public Comment Item # (insert the item number relevant to the comment )” or “Public Comment Non -agenda Item” for general public comments. The public can also submit written comments on the City ’s eComment page. Please visit the City’s website at www .cityoforange.org, click Current City Council Agenda, then click the eComment link for this meeting. To ensure distribution to the City Council prior to consideration of the agenda, we encourage the public to submit comments by 3:00 p.m. the day of the meeting. All public comments will be provided to the Council, posted on the City’s website, and compiled as part of the record. 3) Public Comments via recorded voicemail message
Finally, the public can record their comments by calling (714) 744-2234 no later than 5:00 p.m. the day of the meeting. Recorded messages will not be played at the meeting, but will be provided to the Council and the caller's position will be summarized in the minutes.

In accordance with Ordinance No. 10-01, any person making personal, impertinent, slanderous or profane remarks or who becomes boisterous while addressing the Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council further during that meeting, unless permission to continue is granted by a majority vote of the Council.

Please contact the City Clerk’s Office at (714) 744-5500 with any questions.

ADA Requirements: In compliance with the Americans with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (714) 744-5500. Notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting.

REMINDER: Please silence all electronic devices while City Council is in session.

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2 City Council Agenda January 11, 2022
5:00 PM EMPLOYEE RECOGNITION

1. WELCOME

2. EMPLOYEE SERVICE AWARDS

3. RECESS
5:15 PM CLOSED SESSION

1. ROLL CALL

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, members of the public may address the Council on Closed Session items only. Public Comments are limited to three (3) minutes per speaker.

3. RECESS TO CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(a) & (d)(1) - One case Name of Case: Abarca, et al. v. City of Orange, et al.

Orange County Superior Court Case No. 30-2020-01164035
b. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957(b).

Title: City Manager

4. CLOSED SESSION REPORT

5. ADJOURNMENT
The City Council will adjourn to the 6:00 p.m. Regular Session in the Council Chamber.

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3 City Council Agenda January 11, 2022
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER

1.1 INVOCATION
Pastor Brenton Fessler, Refuge OC

1.2 PLEDGE OF ALLEGIANCE
Councilmember Arianna Barrios

1.3 ROLL CALL

1.4 PRESENTATIONS/ANNOUNCEMENTS
Introduction of Miss City of Orange 2022 contestants

2. PUBLIC COMMENTS
At this time, members of the public may address the Council on matters not listed on the agenda within the subject matter jurisdiction of the City Council, provided that NO action may be taken on off -agenda items unless authorized by law. Public Comments are limited to three (3) minutes per speaker.

3. CONSENT CALENDAR
All items on the Consent Calendar are considered routine and are enacted by one motion approving the recommended action listed on the Agenda. Any member of the City Council, staff or the public may request an item be removed from the Consent Calendar for discussion or separate action. Unless otherwise specified in the request to remove an item from the Consent Calendar, all items removed shall be considered immediately following action on the remaining items on the Consent Calendar.

3.1. Waive reading in full of all ordinances on the Agenda.

Approve.

Recommended Action:

Staff ReportAttachments:

3.2. Confirmation of warrant registers dated December 3, 9, 17, and 22, 2021.

Approve.

Recommended Action:

Staff ReportAttachments:

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4 City Council Agenda January 11, 2022

3.3. Approval of meeting minutes of the City Council of the City of Orange for the December 12, 2021, Adjourned Regular Meeting and December 14, 2021, Regular Meeting.

Approve minutes as presented.

Recommended Action:

Staff Report
December 12, 2021, Adjourned Regular Meeting minutes
December 14, 2021, Regular Meeting minutes
Attachments:

3.4. Agreement with California Waters Development, Inc. for ongoing maintenance of four City fountains.

Approve agreement with California Waters Development, Inc. in the amount of $76,510.80 for ongoing maintenance of four City fountains; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Maintenance Services Agreement with California Waters
Development, Inc.

Attachments:

3.5. Support agreement with SidePath, Inc. for the Civic Center and Police Department storage area networks (SAN).

Approve the agreement with SidePath, Inc. in the amount of $ 51,530.44 for the period of February 1, 2022 through January 31, 2023.

Recommended Action:

Staff Report
Sidepath Quotations
Attachments:

3.6. First Amendment to Attorney Services Agreement with The Sohagi Law Group to provide legal services related to a California Environmental Quality Act (CEQA) challenge to the approval of the Ronald McDonald House expansion.

1. Approve a First Amendment to Attorney Services Agreement with The Sohagi Law Group in the amount of $50,000 and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $50,000 from the General Fund unreserved fund balance to expenditure account number 100.0301.51600.00000, General Fund - Legal Services.

Recommended Action:

Staff Report
First Amendment to Attorney Services Agreement
Attachments:

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5 City Council Agenda January 11, 2022

3.7. Appropriation of $ 129,124.32 in State of California Office of Emergency Services funding received.

1. Accept into the City ’s revenue budget $129,124.32 in strike team reimbursement funds from the California Office of Emergency Services (Cal-OES), into the revenue account numbers for Cal -OES reimbursements as specified in Section 6 of the staff report.

2. Authorize the appropriation of $128,170.72 into the expenditure account number for Overtime-Safety as specified in Section 6 of the staff report.

3. Authorize the appropriation of $953.60 into the expenditure account number for Strike Team Expenditures as specified in Section 6 of the staff report.

Recommended Action:

Staff ReportAttachments:

3.8. Appropriation of $38,799.29 in Senior Mobility Program funds.

Authorize the appropriation of $ 38,799.29 from the Traffic Improvement -Measure M 2 unreserved fund balance to the following expenditure accounts for Traffic Improvement-Measure M2:
$91.70 263.7041.51780.20385 - Sr. Transportation 18-19 $17,253.20 263.7041.51780.20412 - Sr. Transportation 19-20 $21,454.39 263.7041.51780.30151 - Sr. Transportation 20-21 Recommended Action:

Staff ReportAttachments:

3.9. Approval of plans and specifications for Fire Station No. 5 Bathroom Remodel, and authorization to advertise for bids.

Approve plans and specifications and authorize advertising for bids for Fire Station No . 5 Bathroom Remodel Project; Bid No. 21-22.24.

Recommended Action:

Staff Report
Location Map
Attachments:

3.10. Approval of plans and specifications for Annual Sewer Maintenance, Fiscal Year 2021-2022; and authorization to advertise for bids.

Approve plans and specifications and authorize advertising for bids for the Annual Sewer Maintenance, Fiscal Year 2021-2022; S-245; Bid No. 21-22.18.

Recommended Action:

Staff Report
Location Map
Attachments:

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6 City Council Agenda January 11, 2022

3.11. Claims for Damages.

Deny the following claims and refer to City Attorney and Claims Adjuster:

1. V.L. (minor)

2. David Nelson

3. Rita Consuelo Revilla

4. Evan Dominic Belli

5. Eric Daniel Pompei

6. Patricio Esqueda

7. Michael J. Padilla

8. Alyssa O’Hara
Recommended Action:

Staff ReportAttachments:

3.12. Award of Contract to CT&T Concrete Paving, Inc. for Annual Concrete Replacement at Various Locations, Fiscal Year 2021-2022; Bid No. 21-22.19.

1. Authorize the appropriation of $100,000 from Unreserved Fund 263 Measure M 2 to 263.5011.56330.13120 Pavement Management Program.

2. Approve contract with CT&T Concrete Paving, Inc. in the total amount of $852,808, representing an original amount of $775,280 plus a 10% contingency of $77,528, for Annual Concrete Replacement Project, Fiscal Year 2021-2022; and authorize the Mayor and City Clerk to execute on behalf of the City.

Recommended Action:

Staff Report
Bid Abstract
Contract with CT&T Concrete Paving, Inc.

Location Maps
Attachments:

3.13. Final Acceptance of Bid No. 21-22.03, Chapman Avenue Alley Improvement; and authorization to file Notice of Completion.

Accept Chapman Avenue Alley Improvement (SP-4164) as substantially complete, and authorize staff to file Notice of Completion with the County Recorder.

Recommended Action:

Staff Report
Notice of Completion and Acceptance
Attachments:

3.14. Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code (Zoning) to update noticing and posting requirements. Ordinance No. 17-21.

Adopt Ordinance No. 17-21.

Recommended Action:

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7 City Council Agenda January 11, 2022
Staff Report
Ordinance No. 17-21
Attachments:

3.15. Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code (Zoning) to update and establish new development standards for fences and walls. Ordinance No . 19-21.

Adopt Ordinance No. 19-21.

Recommended Action:

Staff Report
Ordinance No. 19-21
Attachments:

3.16. Audited Financial Statements and Related Financial Reports for the fiscal year ended June 30, 2021.

Receive and file the following documents for the fiscal year ended June 30, 2021:

1. Annual Comprehensive Financial Report

2. Audit Communication Letter

3. Independent Accountants’ Report on Agreed -Upon Procedures Applied to the Appropriations Limit Worksheets

4. Independent Accountants’ Report on Agreed -Upon Procedures Applied to the Investment Portfolio

5. Air Pollution Reduction Fund Financial Statements and Independent Auditors ’ Report

6. Independent Auditors’ Report on Internal Control Over Financial Reporting

7. Housing Successor Fund Financial Statements

8. Single Audit of Federally Assisted Grant Programs
Recommended Action:

Staff Report
Annual Comprehensive Financial Report
Audit Communication Letter
Appropriations Limit Worksheets
Investment Portfolio Report
Air Pollution Reduction Fund
Internal Control Over Financial Reporting
Housing Successor Fund Financial Statements
Single Audit of Federally Assisted Grant Programs
Attachments:

END OF CONSENT CALENDAR
* * * * * * * *

4. REPORTS FROM MAYOR MURPHY

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8 City Council Agenda January 11, 2022

4.1. Consideration of appointment of City Councilmembers to City Regional Boards and Committees.

Confirm Mayor Murphy ’s recommendations of appointments of City Councilmembers to City regional boards and committees.

Recommended Action:

Staff Report
Proposed Council appointments to City Regional Boards and Committees
Attachments:

5. REPORTS FROM COUNCILMEMBERS
An opportunity for Councilmembers to make a brief announcement, report, or request .

No action(s) will be taken pursuant to Government Code Section 54954.2(3).

5.1. Highlight Local Business (Gutierrez & Barrios)

5.2 Code Enforcement Discussion (Barrios)

5.3 Orange Police Department Crime Report (Barrios)

6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS

7. ADMINISTRATIVE REPORTS

8. REPORTS FROM CITY MANAGER

9. LEGAL AFFAIRS

10. PUBLIC HEARINGS

10.1. Public Hearing to consider a request for Permit Parking on portions of Madison Avenue, Orange Grove Avenue, and Wayfield Street. Resolution No. 11370.

1. Approve permit parking on the following street segments:
· Both sides of Madison Avenue from Wayfield Street to the cul-de-sac · Both sides of Orange Grove Avenue from Wayfield Street to the westerly property lines of 1743/1744 East Orange Grove Avenue
· West side of Wayfield Street from Orange Grove Avenue to Madison Avenue · East side of Wayfield Street from Orange Grove Avenue to the property line at 565/555 North Wayfield Street

2. Adopt Resolution No. 11370. A Resolution of the City Council of the City of Orange rescinding Resolution No. 11343, and adopting a revised master resolution of permit parking areas within the City of Orange.

Recommended Action:

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9 City Council Agenda January 11, 2022
Staff Report
Area Map Permit Parking Area "W"
October Traffic Commission Report
October Traffic Commisson Minutes
December Traffic Commission Report
December City Traffic Commission Minutes (Draft)
Resolution No. 11370
Attachments:

10.2. Public Hearing to consider extension of Urgency Ordinance No. 18-21 amending Titles 16 and 17 of the Orange Municipal Code to enact definitions and development standards applicable to lot splits and second dwelling units in single-family residential zones allowed as a result of Senate Bill 9.

Receive and file report and adopt the extension of Ordinance No. 18-21 and the findings of urgency. Ordinance No. 18-21-A. Extension of an urgency ordinance of the City Council of the City of Orange amending Title 16 (Subdivisions) and Title 17 (Zoning) of the Orange Municipal Code by enacting ministerial standards applicable to lot splits in single -family residential zones allowed as a result of SB 9, enacting ministerial standards applicable to the location, access, size and setback of second dwelling units in single -family residential zones allowed as a result of SB 9, and revising definitions to clarify said development standards.

Recommended Action:

Staff Report
Ordinance No. 18-21-A
Attachments:

11. ADJOURNMENT
The City Council will adjourn to a meeting on Saturday, January 15, 2022, at 11:00 a.m. in the Council Chamber for Closed Session.

The next Regular City Council meeting will be held on Tuesday, February 8, 2022, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.

I, Jennifer Connally, CMC, Deputy City Clerk for the City of Orange, do hereby declare, under penalty of perjury, that a full and correct copy of this agenda was posted pursuant to Government Code Section 54950 et. seq., at the following locations: Orange Civic Center kiosk and Orange City Clerk's Office at 300 E. Chapman Avenue, Orange Main Public Library, 407 E. Chapman Avenue, Police facility at 1107 N. Batavia Street, and uploaded to the City's website www.cityoforange.org.

Date posted: January 6, 2022

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10 Agenda Item
City Council
Item #: 3.1. 1/11/2022 File #: 21-0694
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

State law requires that all ordinances be read in full either at the time of the introduction or at the time of passage, unless a motion waiving further reading is adopted by a majority of the City Council (Gov.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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11 Agenda Item
City Council
Item #: 3.1. 1/11/2022 File #: 21-0694
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Waive reading in full of all ordinances on the Agenda.

2. SUMMARY
This item asks the City Council to waive the reading in full of all ordinances on the agenda (if any) and approve their reading by title only.

Code § 36934).

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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12 Agenda Item
City Council
Item #: 3.2. 1/11/2022 File #: 21-0695
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Confirmation of warrant registers dated December 3, 9, 17, and 22, 2021.

2. SUMMARY
The warrant writings for the above listed dates are on file in the Office of the City Clerk for Council reference.

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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13 Agenda Item
City Council
Item #: 3.2. 1/11/2022 File #: 21-0695
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Confirmation of warrant registers dated December 3, 9, 17, and 22, 2021.

2. SUMMARY
The warrant writings for the above listed dates are on file in the Office of the City Clerk for Council reference.

3. RECOMMENDED ACTION
Approve.

4. ATTACHMENTS
· None
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14 Agenda Item
City Council
Item #: 3.3. 1/11/2022 File #: 22-0001
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Approval of meeting minutes of the City Council of the City of Orange for the December 12, 2021, Adjourned Regular Meeting and December 14, 2021, Regular Meeting.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meeting(s).

3. RECOMMENDED ACTION
Approve minutes as presented.

4. ATTACHMENTS
· December 12, 2021, Adjourned Regular Meeting minutes
· December 14, 2021, Regular Meeting minutes
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15 Agenda Item
City Council
Item #: 3.3. 1/11/2022 File #: 22-0001
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Approval of meeting minutes of the City Council of the City of Orange for the December 12, 2021, Adjourned Regular Meeting and December 14, 2021, Regular Meeting.

2. SUMMARY
Submitted for your consideration and approval are the minutes of the above meeting(s).

3. RECOMMENDED ACTION
Approve minutes as presented.

MINUTES - DRAFT
The City Council of the City of Orange, California convened on December 12, 2021, at 10:00 a.m. in an Adjourned Regular Meeting in the Council Chamber, 300 E. Chapman Avenue, Orange, California.
10:00 AM CLOSED SESSION

1. OPENING/CALL TO ORDER
Mayor pro tem Nichols called the meeting to order at 10:12 a.m.

1.1 ROLL CALL
Mayor Murphy joined the meeting at 10:33 a.m., and Councilmember Tavoularis joined the meeting at 10:49 a.m.

Present: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and Murphy

Absent: None

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 10:13 a.m. with all Members present, except Mayor Murphy who joined at 10:33 a.m. and Councilmember Tavoularis who joined at 10:49 a.m., to discuss the following:
a. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957(b).

Title: City Manager

4. CLOSED SESSION REPORT
None

5. ADJOURNMENT
There being no further business, the meeting was adjourned at 3:30 p.m. ______________________ _________________________ PAMELA COLEMAN MARK A. MURPHY

CITY CLERK MAYOR

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17 City of Orange
City Council
December 14, 2021

MINUTES - DRAFT
The City Council of the City of Orange, California convened on December 14, 2021, at 5:00 p.m. in a joint Regular Meeting with the Orange Industrial Development Authority and the Governing Board of the Successor Agency to the Orange Redevelopment Agency in the Council Chamber, 300 E. Chapman Avenue, Orange, California. 5:00 PM CLOSED SESSION

1. CALL TO ORDER
Mayor Murphy called the meeting to order at 5:02 p.m.

1.1 ROLL CALL

Present: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and Murphy

Absent: None

2. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
None

3. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 5:05 p.m. with all Members present to discuss the following:
a. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Pursuant to Government Code Section 54956.8
Property Location: 1249 E. Katella Avenue
Agency Negotiator: Aaron Schulze, Senior Assistant to City Manager Negotiating Parties: Orange Senior Housing, Inc.

Under Negotiation: Price and terms of payment
b. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Government Code Section 54956.9. (One potential case)
c. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(a) & (d)(1) Name of case: Mary's Kitchen, et al. v. City of Orange
United States District Court Case No. 8:21-cv-01483-JVS-KES

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18 City Council Minutes - Draft December 14, 2021
d. PUBLIC EMPLOYEE APPOINTMENT
Pursuant to Government Code Section 54957(b).

Title: City Manager

4. CLOSED SESSION REPORT
None

5. ADJOURNMENT
Closed Session was adjourned at 5:47 p.m.
6:00 PM REGULAR SESSION

1. OPENING/CALL TO ORDER
Mayor/Chair Murphy called the meeting to order at 6:00 p.m. (Note: Hereinafter the titles of Mayor, Mayor pro tem, Councilmember, City Attorney, and City Clerk shall be used to indicate Mayor /Chair, Mayor pro tem /Vice Chair, Councilmember /Authority Member /Governing Board Member, City /Authority/Governing Board Attorney, City Clerk /Authority Secretary /Governing Board Clerk.)

1.1 INVOCATION
Given by Pastor Tim Klinkenberg from St. John's Lutheran Church of Orange.

1.2 PLEDGE OF ALLEGIANCE
Led by Councilmember Chip Monaco.

1.3 ROLL CALL

Present: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and Murphy

Absent: None

1.4 PRESENTATIONS/ANNOUNCEMENTS
Proclamation recognizing Rotary Club of Orange 100th Anniversary.

2. PUBLIC COMMENTS
Public Speakers
The following spoke in opposition of a proposed cemetery near Palmyra Avenue :

Tepmora Wise, Bernie Galasso, Sharon Galasso, William Vaughter, Alan Kinkaid, Greg Baker, Caren Wolf, John Nguyen, Christian Bock, Arnie Kimeldorf, and Eric Gilbert.

Dave Casselman spoke regarding illegal placement of election signs.

Chad Kroger made a presentation for entertainment purposes.

Dru Whitefeather spoke regarding the Sully Miller site.

Bonnie Robinson spoke regarding the Sully Miller site.

JT Parr made a presentation for entertainment purposes.

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19 City Council Minutes - Draft December 14, 2021
Written Public Comment
Janice Brownfield emailed in support of the use of cool pavements in the City.

In addition, a recorded message was received by Robert Bonzer in opposition of a proposed cemetery near Palmyra Avenue, and an anonymous caller in support of banning flavored tobacco.

3.1. Waive reading in full of all ordinances on the Agenda.

ACTION: Approved.

3.2. Confirmation of warrant registers dated November 5, 10, 19, and 24, 2021.

ACTION: Approved.

3.3. Approval of meeting minutes of the City Council of the City of Orange for the November 9, 2021, Regular Meeting and November 30, 2021, Adjourned Regular Meeting.

ACTION: Approved minutes as presented.

3.4. Agreement with Tetra Tech BAS, Inc. for conducting ground survey, laser scanning, and geotechnical monitoring programs at Reservoir 2A.

ACTION: Approved agreement with Tetra Tech BAS, Inc. in an amount not to exceed $122,082; and authorized the Mayor and City Clerk to execute on behalf of the City.

3.5. Agreement with City of Anaheim for Fiscal Year 2019-2020 Urban Areas Security Initiative grant.

Note: Councilmember Barrios abstained due to a potential conflict with employment.

ACTION: Approved the agreement with the City of Anaheim for Fiscal Year 2019-2020 Urban Areas Security Initiative grant; and authorized the City Manager to execute on behalf of the City.

3.6. Agreement with Triad Consulting & System Design Group, L .L.C. for security consulting services.

ACTION: 1) Approved the agreement with Triad Consulting & System Design Group, L.L.C. in the amount of $ 20,000 for security consulting services; and authorized the Mayor and the City Clerk to execute on behalf of the City; and 2) Authorized the appropriation of $ 20,000 from the Capital Bond Proceeds unreserved fund balance to expenditure account number 553.1601.56033.20347, Capital Bond Proceeds - Enterprise Access System.

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20 City Council Minutes - Draft December 14, 2021

3.7. Second Amendment to Information Technology Services Agreement with Intratek Computer, Inc. for network support services.

ACTION: Approved the second amendment to agreement with Intratek Computer, Inc . for network support services for $ 56,646; and authorized the Mayor and City Clerk to execute on behalf of the City.

3.8. Appropriation of $ 71,863.38 in State of California Office of Emergency Services funding received.

ACTION: 1) Accepted into the City ’s revenue budget $ 71,863.38 in Strike Team reimbursement funds from the California Office of Emergency Services (Cal-OES), into the revenue account numbers for Cal-OES reimbursements as follows:
$ 24,657.65 100.3024.48212.40268 - OES Pre-Position #210031 32,818.32 100.3024.48212.40271 - Tumbleweed Fire
14,387.41 100.3024.48212.40272 - Beckwourth Complex
2) Authorized the appropriation of $ 70,536.29 into the expenditure account numbers for Overtime-Safety as follows:
$ 23,460.34 100.3024.50221.40268 - OES Pre-Position #210031 32,688.54 100.3024.50221.40271 - Tumbleweed Fire
14,387.41 100.3024.50221.40272 - Beckwourth Fire
3) Authorized the appropriation of $ 1,327.09 into the expenditure account numbers for Strike Team Expenditures as follows:
$ 1,197.31 100.3024.53860.40268 - OES Pre-Position #210031 129.78 100.3024.53860.40271 - Tumbleweed Fire

3.9. Appropriation of $ 3,816 in disbursement funding received from Santiago Library System.

ACTION: 1) Accepted into the City ’s revenue budget $ 3,816 in disbursement funding from Santiago Library System, into revenue account number 100.2001.48390.19988, Santiago Library System; and 2) Authorized the appropriation of $ 3,816 into expenditure account number 100.2001.53301.19988, Santiago Library System - Library Books.

3.10. Unfreeze and fund the Police Sergeant position for the creation of a Public Information Officer/Community Engagement Liaison.

ACTION: Authorized the appropriation of $ 138,000 from the General Fund (100) unreserved fund balance to expenditure account number 100.4001.50001.00000.

3.11. Rejection of bids for the Well 29 Drilling Project; Bid No. 21-22.04.

ACTION: Rejected all bids received and authorized staff to re -advertise the Well 29 Drilling Project.

3.12. Approval of plans and specifications for SP -4097; Public Works and Community Development Front Counter Remodel Project and authorization to advertise Bid No. 21-22.22.

ACTION: Approved plans and specifications and authorized advertising for bids for the Public Works and Community Development Front Counter Remodel Project.

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3.13. Claims for Damages.

ACTION: Denied the following claims and referred to City Attorney and Claims Adjuster:

1. Brandon Crary

2. Robert H. Miltier

3. Alicia Perez

4. Mercury Insurance a/s/o Ruggero Broccardo

5. Kevin Cain

6. Kemper a/s/o Alicia Perez

3.14. Final Acceptance of Bid No. 20-21.33, HVAC Installation at Killefer Park; and authorization to file Notice of Completion.

ACTION: Accepted HVAC installation at Killefer Park as complete, and authorized staff to file Notice of Completion with the County Recorder.

3.15. Final Acceptance of Bid No. 20-21.13, Handy Park Maintenance Renovation; and authorization to file Notice of Completion.

ACTION: Accepted Handy Park Maintenance Renovation as complete, and authorized staff to file Notice of Completion with the County Recorder.

3.16. Award of Contract to USA Shade and Fabric Structures, Inc. for purchase and installation of tot lot shade structures at Fred Barrera, Serrano, and El Modena Parks.

ACTION: Approved the contract with USA Shade and Fabric Structures, Inc. in the amount of $ 309,219.38 for the installation of shade structures at Fred Barrera, Serrano and El Modena Parks; and authorized the Mayor and City Clerk to execute on behalf of the City.

3.17. Award of Contract to Hardy & Harper, Inc. for Prospect & Spring Right Turn Lane Modification; Bid No. 21-22.12; and appropriation of funds from various expenditure accounts.

ACTION: 1) Approved contract with Hardy & Harper, Inc. in the total amount of $1,012,000, representing an original amount of $ 920,000, plus a 10% contingency of $92,000, for Prospect & Spring Right Turn Lane Modification; and authorized the Mayor and City Clerk to execute on behalf of the City; and 2) Authorized the appropriation of $ 120,000 from the TSIP Citywide unreserved fund balance to expenditure account number 287.5011.56330.20458, Prospect & Spring Right Turn Lane Modification.

3.18. Award of Contract to CEM Construction Corporation for the Annual Pipeline Renewal Project; Bid No. 21-22.08.

ACTION: 1) Awarded the contract to CEM Construction Corporation in the amount of $988,350 for the Annual Pipeline Renewal; and authorized the Mayor and City Clerk to execute on behalf of the City; and 2) Authorized 10% of the contract amount for contingency purposes.

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3.19. Award of Contract to R .J. Noble Company for Community Development Block Grant Fiscal Year 2021-2022 Beverly Neighborhood Street Rehabilitation; Bid No . 21-22.11
ACTION: Approved the contract with R .J. Noble Company in the total amount of $568,886.

3.20. Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Title 16 and Title 17 of the Orange Municipal Code relating to regulation of small lot subdivisions. Ordinance No. 15-21.

Note: Councilmember Barrios and Councilmember Gutierrez registered no votes.

ACTION: Adopted Ordinance No. 15-21.

3.21. Authorize purchase of Calsense irrigation equipment and award Bid No. 21-22.15 to SiteOne Landscape Supply.

ACTION: Approved a purchase of Calsense irrigation equipment in the amount of $69,329.68 from SiteOne Landscape Supply.

3.22. Authorize purchase of two vehicles for the Orange Police Department using a Cooperative Purchasing Agreement.

ACTION: Authorized the purchase of two 2022 utility vehicles from National Auto Fleet Group in the amount of $79,506.

3.23. Authorize purchase of a handheld narcotics analyzer for the Police Department, from Thermo Scientific Portable Analytical Instruments, Inc. doing business as Thermo Fisher Scientific, as a sole source vendor, in the amount of $34,374.

ACTION: 1) Approved the purchase of handheld narcotics analyzer (TruNarc) and warranty from Thermo Fisher Scientific in an amount not to exceed $ 34,374; and 2) Authorized the appropriation of $ 34,374 from the Federal Asset Forfeiture unreserved fund balance into expenditure account number 355.4011.55131.00000, Federal Asset Forfeiture - Equipment.

3.24. Submittal of annual financial reports for development impact fees for Fiscal Year 2020-2021.

ACTION: Received and filed the annual financial reports relating to Transportation System Improvement Program Fees, Park Infill Fees, Fire Protection Facility Fees, Police Facility Development Fees, and Library Facilities Development Fees.

3.25. Investment Oversight Committee report for the period ending November 30, 2021.

ACTION: Received and filed.

3.26. Authorization to submit a transportation improvement project application to the Orange County Transportation Authority for funding under Measure M 2 of the Comprehensive Transportation Funding Program. Resolution No. 11365.

ACTION: Adopted Resolution No. 11365 entitled: A Resolution of the City Council of the City of Orange approving the submittal of transportation improvement projects to the Orange County Transportation Authority for funding under the renewed Measure M (M2) of the Comprehensive Transportation Funding Program.

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3.27. Amend the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5. Resolution No. 11366.

ACTION: Adopted Resolution No. 11366 entitled: A Resolution of the City Council of the City of Orange amending the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.

3.28. Adoption of a Resolution certifying and affirming commitment to implement all the projects in the Federal Fiscal Years 2022/23-2027/28 Transportation Improvement Program. Resolution No. 11368.

ACTION: Adopted Resolution No. 11368 entitled: A Resolution of the City Council of the City of Orange certifying that the City of Orange has the resources to fund the projects in the FFY 2022/23-2027/28 Transportation Improvement Program and affirming its commitment to implement all projects in the program.

3.29. Opposition of H .R. 2467 Federal PFAS Legislation (PFAS Action Act of 2021) that will shift Financial Liabilities to Ratepayers and Water Agencies. Resolution No . 11369.

Item 3.29 was removed from the Consent Calendar for separate consideration by Mayor pro tem Nichols.

In response to Council's question, Water Manager Jose Diaz explained that H .R. 2467 is federal legislation that will shift the financial responsibility of cleaning up commercial water pollutants and contaminants from the polluters and agencies responsible for the pollution to ratepayers and water agencies.

ACTION: A motion was made by Mayor pro tem Nichols, seconded by Councilmember Monaco, to adopt Resolution No. 11369 entitled: A Resolution of the City Council of the City of Orange expressing opposition to H .R. 2467 Federal PFAS Legislation that will shift financial liabilities to Ratepayers and Water Agencies. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

SUCCESSOR AGENCY TO THE ORANGE REDEVELOPMENT AGENCY

3.30. Recognized Obligation Payment Schedule for the fiscal period covering July 1, 2022 through June 30, 2023 (ROPS 22-23). Resolution No. SAORA-035. 1) Adopted Resolution No. SAORA-035 entitled: A Resolution of the Governing Board of the Successor Agency to the Orange Redevelopment Agency approving a Recognized Obligation Payment Schedule for the fiscal period covering July 1, 2022 through June 30, 2023 (ROPS 22-23), pursuant to Health and Safety Code Section 34177 and taking certain related actions; and 2) Directed staff to transmit ROPS 22-23 and related Administrative Budgets to the Orange Countywide Oversight Board of the Successor Agency to the Orange Redevelopment Agency.

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Approval of the Consent Calendar
Councilmember Barrios abstained on Item 3.5. Councilmember Barrios and Councilmember Gutierrez registered no votes on Item 3.20. Item 3.29 was removed from the Consent Calendar and heard separately. All other items were approved as recommended.

A motion was made by Councilmember Monaco, seconded by Mayor pro tem Nichols, to approve the Consent Calendar as recommended. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

END OF CONSENT CALENDAR
* * * * * * * *
RECESS: The City Council recessed at 6:55 p.m. and reconvened at 7:05 p.m. with all Members present.
(Public Hearings and Items Related to the Industrial Development Authority were re-ordered to be heard after the Consent Calendar)

10. PUBLIC HEARINGS
The following item began at 7:05 PM.

10.1. Public Hearing to review initial draft district maps and public maps.

Senior Assistant to the City Manager Aaron Schulze announced in Spanish that live translations services were available upon request.

Dr. Justin Levitt, National Demographics Corporation, provided a brief staff report. He reviewed the goals and rules of the Fair Maps Act and presented the public maps submitted by the community and three draft maps prepared by NDC.

Mayor Murphy opened the Public Hearing at 7:23 p.m.

Public Speaker
Sammy Rodriguez emphasized that District 5 boundaries should remain unchanged.

Written Public Comment
Adam Duberstein, on behalf of OTPA, emailed in support of Map 119.

Mayor Murphy closed the Public Hearing at 7:25 p.m.

During discussion, it was Council consensus to eliminate all maps not in compliance with the Fair Maps Act. Council provided NDC direction for modifying maps 105, 108, 109, and 119.

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10.2. Public Hearing to consider an ordinance amending procedures for noticing and posting requirements for land use applications. Ordinance No. 17-21.

Assistant Planner Vidal Marquez reviewed the proposed amendments to the City's noticing requirements. He noted that the Planning Commission recommends adopting the proposed ordinance, and increasing the required area for mailed notices to surrounding property owners from 300 ft. to 400 ft.

Mayor Murphy opened the Public Hearing at 8:16 p.m.

Written Public Comment
Kimberly Bottomley wrote in support of the proposed amendments to the noticing requirements.

Mayor Murphy closed the Public Hearing at 8:17 p.m.

During discussion, staff was directed to come back with a separate ordinance amending the required area for mailed notices from 300 ft. to 400 ft.

A motion was made by Councilmember Dumitru, seconded by Councilmember Monaco, to introduce and conduct First Reading of Ordinance No .17-21. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

Ordinance No. 17-21. An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code (Zoning) to update noticing and posting requirements.

10.3. Public Hearing to consider an ordinance updating the fence and wall provisions of the Orange Municipal Code. Ordinance No. 19-21.

Mayor Murphy opened the Public Hearing at 8:31 p.m.; there being no speakers, Mayor Murphy closed the Public Hearing at 8:31 p.m.

A motion was made by Councilmember Barrios, seconded by Councilmember Dumitru, to introduce and conduct First Reading of Ordinance No. 19-21. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

Ordinance No. 19-21. An Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code (Zoning) to update and establish new development standards for fences and walls.

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10.4. An Urgency Ordinance of the City Council of the City of Orange amending Titles 16 and 17 of the Orange Municipal Code to enact definitions and development standards applicable to lot splits and second dwelling units in single -family residential zones allowed as a result of Senate Bill 9. Ordinance No. 18-21.

Senior Planner Chad Ortlieb provided a brief overview of the proposed urgency ordinance. He explained that having urgency standards and procedures in place before SB 9 goes into effect on January 1, 2022, will allow the City to immediately impose reasonable and objective regulations on SB 9 applications in order to prevent the many negative and deleterious effects on the public health, safety and welfare that would occur if unrestricted lot splits and second units occurred in R1 neighborhoods.

Mayor Murphy opened the Public Hearing at 8:46 p.m.; there being no speakers, Mayor Murphy closed the Public Hearing at 8:46 p.m.

A motion was made by Councilmember Monaco, seconded by Councilmember Barrios, to adopt Ordinance No. 18-21 and the findings of urgency. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

Ordinance No. 18-21. An Urgency Ordinance of the City Council of the City of Orange amending Title 16 and Title 17 of the Orange Municipal Code by enacting ministerial standards applicable to lot splits in single -family residential zones allowed as a result of SB 9, enacting ministerial standards applicable to the location, access size and setback of second dwelling units in single -family residential zones allowed as a result of SB 9, and revising definitions to clarify said development standards.

11. ITEMS RELATED TO THE INDUSTRIAL DEVELOPMENT AUTHORITY

11.1. Report from the Finance Director of the Industrial Development Authority of the City of Orange.

A motion was made by Councilmember Dumitru, seconded by Mayor Murphy, to receive and file the report. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

RECESS: The City Council recessed at 8:48 p.m. and reconvened at 9:01 p.m. with all Members present.

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(Items 7.1 and 7.2 were re-ordered to be heard after Item 11.1)

7. ADMINISTRATIVE REPORTS

7.1. Authorization of the issuance and sale of Special Tax Refunding Bonds, Series 2021 (the 2021 Bonds) in a principal amount not to exceed $ 19,000,000, to refinance outstanding 2013 Special Tax Refunding Bonds (the “2013 Bonds”) for the City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements) (the “District”). Resolution No. 11367.

A motion was made by Mayor pro tem Nichols, seconded by Councilmember Barrios, to adopt Resolution No. 11367. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

Resolution No. 11367. A Resolution of the City Council of the City of Orange acting as the legislative body of City of Orange Community Facilities District No. 91-2 (Serrano Heights Public Improvements) authorizing the issuance of its Special Tax Refunding Bonds, Series 2021 in a principal amount not to exceed Nineteen Million Dollars ($19,000,000) and approving certain documents and taking certain other actions in connection therewith.

7.2. Orange Plaza Paseo Update and Options.

Interim Community Development Director Susan Galvan provided a brief staff report outlining options available to Council.

Public Speakers
Bruce Finn spoke in support of closing the Paseo and re-opening Glassell Street.

Richard Turner spoke in support of re-opening Glassell Street.

Tony Trabucco, on behalf of OTPA, spoke in support of closing the Paseo on 12/31/21.

Bonnie Gracia spoke in support of re-opening Glassell Street.

Laura Thomas spoke in support of closing the Paseo.

Wil Dee spoke in support of keeping the Paseo open and
Brian Lochrie spoke in support of re-opening Glassell Street.

Al Ricci spoke in support of the Parklet design; and proposed designing a prototype for Council's review.

Written Public Comments
The following wrote in support of keeping the Paseo open: Michelle Malloy, PJ Perez, Samantha Carter, Laura Kuntz, Joel Robinson, Carol Hollingsworth, Connie McGuire, Eduardo Moreno Cerezo, Megan Penn, and Wendi Forrest.

The following wrote in support of closing the Paseo and re -opening Glassell Street :

Jack Schroeder, Jeff Frankel, Anna Faris, Annalisa Goode, Emily Duran, Lorna Greenhill, Maria Conzelman, Mark E. Benkendorf, Patty Ricci, Roger Bonzer, Cheryl Gale, Cierra Wilson, Jim Rawhouser, Robert Graf, Patricia Barrios, Adam Weinraub, Michael Cash, Peggy Calvert, Will Hare, Elise Dugan, Barbara Raney, Jill Sargeant, Sean Swanson, Max Lochrie, Russell Barrios, William Southgate, Katie Mansfield,

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Rebecca Glos, Tita Smith, Janet Clinkscales, Hope Molina -Porter, Carrie Frisby, Linda Corcoran, Cristiane Napolitan, Juliet and Danny Ford, Rosemarie Williams, Steve Soest, Katy Dyer, Kathleen Barbeito, Jeannette McClain, Joseph Barbeito, Jim Rajac, Shannon Paul, Seth Hoffman, Tom Loughrey, Craig Enberg, Guy Hinrichs, Luke Nichter, Jim Karras, Stephen Bennett, Wendy Bennett, Victoria Laughlin, Shannon Paul, Stacie Valencia, James Kushon, Adam Duberstein, Deanna Osborn, Gina Green, Justin Haas, Debi Duprey, Richard Muniz, Abigail Otellio, Laurie Cesena, Leticia Trabucco, Patti Finn, Genevieve Southgate, Tony Trabucco, Chris Glos, Kimberly Otellio, Carrie Marcel, Mike and Bonnie Gracia, Paul Turek, Marceline Wright, Bruce Finn, Amy Bippus, Stephanie Reynolds, Rae Reich, Jerry Scott, Christine Aschan, Kurt Porter, Robert Dischner, Ron Tollison, Pat Lee, Barbara Geach, Matin Sharifinejad, Sue Vaurs, Nadima Jones, Mary Stoutenger, Theodore Robinson, Mitch Faris, Joseph Peters, Gloria Boice, Sharon Zimmerman, Domingo Cabrera, Jonathan Zimmerman, Douglas Hillman, Arlene Hillman, Gina Siegel, Aleta Bryant, Rita Gibbons Sterling, Jenny Richenburg, Theodor C. Albert, Michelle Duman, Amanda Cabrera, John Goode, Mary Nicholas, Danielle Kramer, Michael Montgomery, Lori Yates, Jacqueline Hanson, Carolyn Psgani, Judy Crum, Michelle Terrazas, and Steve Soest.

Councilmember Monaco moved to confirm the closure of the Orange Plaza Paseo on December 31, 2021, with a 14-day transition period between the closure and re-opening of Glassell Street to vehicular traffic; and direct staff to send a letter requesting OCTA not to take action to add Glassell Street back into the Master Plan of Arterial Highways. Councilmember Tavoularis seconded the motion.

During discussion, Councilmember Barrios requested to amend the motion to confirm the closure to January 2, 2022. Councilmember Monaco and Councilmember Tavoularis accepted the amendment.

An amended motion was made by Councilmember Monaco, seconded by Councilmember Tavoularis, to confirm the closure of the Orange Plaza Paseo on January 2, 2022, with a 14-day transition period between the closure and re -opening of Glassell Street to vehicular traffic; and direct staff to send a letter requesting OCTA not to take action to add Glassell Street back into the Master Plan of Arterial Highways .

The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

7.2. Orange Plaza Paseo Update and Options.

During deliberation, Council discussed waiting to implement a parklet design until the full CEQA study has been completed.

Councilmember Barrios made a motion to direct staff to move forward in partnership with the Orange Chamber of Commerce to create a prototype parklet and study the final effects and allow public input.

During further discussion, Council raised safety concerns surrounding a parklet design.

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Councilmember Monaco made a substitute motion to direct staff to continue studying parklets and come back with a report as part of that process.

A motion was made by Councilmember Monaco, seconded by Councilmember Dumitru, to direct staff to continue studying parklets and come back with information as part of that process. The motion carried by the following vote:

Nichols, Monaco, Barrios, Dumitru, Tavoularis, and MurphyAyes:

GutierrezNoes:

NoneAbsent:
(Items 4.1, 5.1, and 6.1 were re-ordered to be heard after Item 7.2)

4. REPORTS FROM MAYOR MURPHY
None

5. REPORTS FROM COUNCILMEMBERS

5.1. Highlight Local Business (Gutierrez & Barrios)
Councilmember Gutierrez highlighted the following local businesses: Moreno's Bakery/Panaderia and La Poblano Panaderia.

Councilmember Tavoularis requested Council consider revoking the local emergency order. It was Council consensus to direct staff to prepare a report for a future meeting agenda.

6. REPORTS FROM BOARDS, COMMITTEES, AND COMMISSIONS

6. 1. Orange County Mosquito and Vector Control District Board of Trustees representative.

Public Speaker
John Russo spoke in support of opening the position to all Orange residents if the Council decides to appoint a resident instead of a Councilmember as a representative to the Board.

A motion was made by Councilmember Barrios, seconded by Councilmember Gutierrez, to appoint Councilmember Jon Dumitru as the representative on the Orange County Mosquito and Vector Control District Board of Trustees for a term of two years .

The motion carried by the following vote:

Nichols, Monaco, Barrios, Tavoularis, Gutierrez, and MurphyAyes:

NoneNoes:

NoneAbsent:

DumitruAbstain:

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7. ADMINISTRATIVE REPORTS
Items 7.1 and 7.2 were previously re-ordered to be heard after Item 11.1.

7.2. Orange Plaza Paseo Update and Options.

8. REPORTS FROM CITY MANAGER
None

9. LEGAL AFFAIRS
None
Items 10.1 - 10.4 and Item 11.1 were previously reordered to be heard after the Consent Calendar.

10. PUBLIC HEARINGS

10.1. Public Hearing to review initial draft district maps and public maps.

10.2. Public Hearing to consider an ordinance amending procedures for noticing and posting requirements for land use applications. Ordinance No. 17-21.

10.3. Public Hearing to consider an ordinance updating the fence and wall provisions of the Orange Municipal Code. Ordinance No. 19-21.

11. ITEMS RELATED TO THE INDUSTRIAL DEVELOPMENT AUTHORITY

11.1. Report from the Finance Director of the Industrial Development Authority of the City of Orange.

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12. ADJOURNMENT
There being no further business, the meeting was adjourned at 10:26 p.m. in Memory of Orange resident Zach Collins.

The next Regular City Council meeting will be held on Tuesday, January 11, 2022, at 6:00 p.m., in the Council Chamber, with Closed Session beginning at 5:00 p.m., if necessary.
______________________ _________________________ PAMELA COLEMAN MARK A. MURPHY

CITY CLERK MAYOR

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32 Agenda Item
City Council
Item #: 3.4. 1/11/2022 File #: 21-0687
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Leslie Hardy, Acting Community Services Director

1. SUBJECT
Agreement with California Waters Development, Inc. for ongoing maintenance of four City fountains.

2. SUMMARY
This four-year agreement with California Waters Development, Inc., effective March 1, 2022, will provide regular twice-weekly maintenance and as needed repair to City fountains located at the Civic Center, the Main Library, Plaza Park, and Veterans Memorial at Depot Park. The not to exceed amount is $76,510.80.

3. RECOMMENDED ACTION
Approve agreement with California Waters Development, Inc. in the amount of $76,510.80 for ongoing maintenance of four City fountains; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total four-year expenditure for this agreement is $76,510.80 and will be funded through the General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community a: Renovate, maintain, develop, and/or expand public use places and spaces.

6. DISCUSSION AND BACKGROUND
The Community Services Department maintains City fountains located at the Civic Center, Main Library, Plaza Park, and Veterans Memorial at Depot Park. These fountains are prominent features in the City, with the Plaza and Main Library fountains having important historical significance. All fountains receive routine maintenance twice weekly. The scope of services also includes a one hour response time to emergencies, 24 hours/day, and seven days/week. The agreement with the current vendor expires February 28, 2022.

The Community Services Department solicited bids for fountain maintenance, consistent with the current scope of services, for a four-year agreement. Three bids were received:

1. California Waters Development, Inc. Yorba Linda, CA $ 63,759 City of Orange Printed on 1/5/2022Page 1 of 2
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33 Item #: 3.4. 1/11/2022 File #: 21-0687

2. Advanced Aquatic Technology, Inc. Orange, CA $ 69,352

3. Service First Santa Ana, CA $ 181,440
California Waters Development, Inc. (California Waters) submitted the lowest responsible bid.

Additionally, staff also verified the qualifications of the contractor with references provided for similar services. When compared to the base annual rates in the current agreement, the overall expense increased by approximately 2%, which is consistent with the cost of living increases in the current agreement.

In addition to the annual amounts, the contract includes an overall 20% contingency. Given the historical value of the fountains and the aging infrastructure supporting each fountain’sfunction, staff is recommending a 20% contingency applicable to each year of the agreement to address any unforeseen conditions or repairs over the next four years. The total aggregate cost of the four-year agreement, including contingency, is $76,510.80. A bid abstract is attached.

The term of this agreement will be March 1, 2022 through February 28, 2026. Sufficient funds are available in the General Fund (100) for the proposed agreement. Funding for the remaining years of the agreement is dependent upon City Council approval of the annual budget.

7. ATTACHMENTS
· Maintenance Services Agreement with California Waters Development, Inc.

City of Orange Printed on 1/5/2022Page 2 of 2
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34 Agenda Item
City Council
Item #: 3.4. 1/11/2022 File #: 21-0687
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Leslie Hardy, Acting Community Services Director

1. SUBJECT
Agreement with California Waters Development, Inc. for ongoing maintenance of four City fountains.

4. FISCAL IMPACT
The total four-year expenditure for this agreement is $76,510.80 and will be funded through the General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community a: Renovate, maintain, develop, and/or expand public use places and spaces.

The Community Services Department solicited bids for fountain maintenance, consistent with the current scope of services, for a four-year agreement. Three bids were received:

1. California Waters Development, Inc. Yorba Linda, CA $ 63,759 City of Orange Printed on 1/5/2022Page 1 of 2
powered by Legistar™
35 Item #: 3.4. 1/11/2022 File #: 21-0687

2. Advanced Aquatic Technology, Inc. Orange, CA $ 69,352

3. Service First Santa Ana, CA $ 181,440
California Waters Development, Inc. (California Waters) submitted the lowest responsible bid.

7. ATTACHMENTS
· Maintenance Services Agreement with California Waters Development, Inc.

City of Orange Printed on 1/5/2022Page 2 of 2
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36 MAINTENANCE SERVICES AGREEMENT
[Maintenance Services for City Fountains (RFB 21-22.16)]

THIS MAINTENA NCE SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on this _____ day of ______________________, 2022 by and between the CITY OF ORANGE, a mun icipal corporation (“City”) and CALIFORNIA WATERS DEVELOPMENT, INC., a California corporation, doing business as CALIFORNIA WATERS (“Contractor”), who agree as follows.

1. Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to the reasonable satisfaction of City the services set forth in Exhibit “A ,” which is attached hereto and incorporated herein by this reference. As a material inducement to City to enter into this Agreement, Contractor represents and warrants that it has thoroughly investigated and considered the scope of services and fully under stands the difficulties and restrictions in performing the work. Contractor represents that it is experienced in performing the work and will follow the highest professional standards in performance of the work. All services provided shall conform to all federal, state and local laws, rules and regulations and to the best professional standards and practices.

The terms and conditions set forth in this Agreement shall control over any terms and conditions in Exhibit "A" to the contrary.

Nathan Bluhm, Senior Project Landscape Coordinator (“City’s Project Manager”), shall be the person to whom Contractor will report for the performance of services hereunder. It is understood that Contractor’s performance hereunder shall be under the supervision of City’s Project Manager (or designee), that Contractor shall coordinate its services hereunder with City’s Project Manager to the extent required by City’s Project Manager, and that all performances required hereunder by Contractor shall be performed to the satisfaction of City’s Project Manager and the City Manager.

2. Total Compensation, Annual Compensation and Fee Schedule.

a. Contractor’s total compensation for all services performed under this Agreement, shall not exceed SEVENTY-SIX THOUSAND FIVE HUNDRED TEN DOLLARS and 80/100 ($76,510.80) without the prior written authorization of City.

b. The compensation for services performed under this Agreement shall be paid as specified in Exhibit “B.”

c. The above fee shall include all costs, including, but not limited to, all clerical, administrative, overhead, insurance, reproduction, telephone, travel, auto and equipment rental, and all related expenses.

37 2

3. Payment.

a. As scheduled services are completed, Contractor shall submit to City an invoice for the services completed, authorized expenses and authorized extra work actually performed or incurred.

b. All such invoice s shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

c. City will pay Contractor the amount invoiced within thirty (30) days after the approval of the invoice.

d. Payment shall constitute payment in full for all services, authorized costs and authorized extra work covered by that invoice.

4. Change Orders. No payment for extra services caused by a change in the scope or complexity of work, or for any other reason, shall be made unless and until such extra services and a price therefor have been previously authorized in writing and approved by City as an amendment to this Agreement. City’s Project Manager is authorized to direct a reduction in services to be performed and compensation therefore. The amendment shall set forth the changes of wo rk, extension of time , and adjustment of the compensation to be paid by City to Contractor.

5. Licenses. Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to pe rform the work contemplated by this Agreement and that Contractor and its subcontractors shall maintain all appropriate licenses, including a City of Orange business license, at its cost, during the performance of this Agreement.

6. Independent Contractor. At all times during the term of this Agreement, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor's services rendered pursuant to this Ag reement.

City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Agreement. Contractor shall, at its sole cost and expense, furnish all facilities, materials and equipment which may be requir ed for furnishing services pursuant to this Agreement.

Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Contractor acknowledges that it and any subcontractors, agents or employees employed by Contractor shall not, under an y circumstances, be considered employees of City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System be nefits, or health, life, dental, long -term disability or workers' compensation insurance benefits.

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7. Contractor Not Agent. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent.

Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

8. Designated Persons. Except as otherwise authorized by City’s Project Manager, only the employees of Contractor shall perform work provided for under this Agreement. It is understood by the parties that clerical and other nonprofessional work may be performed by persons other than those designated.

9. Assignment or Subcontracting . No assignment or subcontracting by Co ntractor of any part of this Agreement or of funds to be received under this Agreement shall be of any force or effect unless the assignment has had the prior written approval of City. City may terminate this Agreement rather than accept any proposed assi gnment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.

10. Term. The term of this Agreement shall be FOUR (4) years, commencing on March 1, 2022, and ending on February 28, 2026.

11. Time Is of the Essence . Time is of the essence in this Agreement. Con tractor shall do all things necessary and incidental to the prosecution of Contractor's work.

12. Reserved.

13. Delays and Extensions of Time. Contractor's sole remedy for delays outsid e its control, other than those delays caused by City, shall be an extension of time. No matter what the cause of the delay, Contractor must document any delay and request an extension of time in writing at the time of the delay to the satisfaction of City. Any extensions granted shall be limited to the length of the delay outside Contractor’s control. If Contractor believes that delays caused by City will cause it to incur additional costs, it must specify, in writing, why the delay has caused additional costs to be incurred and the exact amount of such cost at the time the delay occurs. No additional costs can be paid that exceed the not to exceed amount stated in Section 2.a, above, absent a written amendment to this Agreement.

14. Products of Contractor. The documents, studies, evaluations, assessments, reports, plans, citations, materials, manuals, technical data, logs, files, designs and other products produced or provided by Contractor for this Agreement shall become the property of City upon receipt. Contractor shall deliver all such products to City prior to payment for same. City may use, reuse or otherwise utilize such products without restriction.

15. Equal Employment Opportunity . During the performance of this Agreement, Contractor agrees as follows:

a. Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law. Contractor s hall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, 39 4
national origin, mental or physical disability, or any other basis prohibited by applicable law. Such actions s hall include, but n ot be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive consideration f or employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any work covered by this Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

16. Conflicts of Interest . Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code.

17. Indemnity.

a. To the fullest extent permitted by law, Contractor agrees to indemnify, defend and hold City, its City Counci l and each member thereof, and the officers, officials, agents and employees of City (collectively the “Indemnitees”) entirely harmless from all liability arising out of:

(1) Any and all cl aims under worker s’ compensation acts and other employee benefit acts with respect to Contractor’s employees or its subcontractor’s employees arising out of Contractor’s work under this Agreement, including any and all claims under any law pertaining to Contractor or its employees’ status as an independent contractor and any and all claims under Labor Code section 1720 related to the payment of prevailing wages for public works projects; and

(2) Any claim, loss, injury to or death of persons or damage to property caused by any act, neglect, default, or omission other than a professional act or omission of Contractor, or person, firm or corporation employed by Contractor, either directly or by independent contract, including all damages due to loss or theft sustained by any person, firm or corporation including the Indemnitees, or any of them, arising out of, or in any way connected with the work or services which are the subject of this Agreement, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the ac tive negligence or willful misconduct of City.

Contractor, at its own expense, cost and risk, shall indemnify any and all claims, actions, suits or other proceedings that may be brought or instituted against the Indemnitees on any such claim or liability covered by this subparagraph, and shall pay or satisfy any judgment that may be rendered against the Indemnitees, or any of them, in any action, suit or other proceedings as a result of coverage under this subparagraph.

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b. Reserved.

c. Except for the Ind emnitees, the indemnifications provided in this Agreement shall not be construed to extend any third party indemnification rights of any kind to any person or entity which is not a signatory to this Agreement.

d. The indemnities set forth in this section shall survive any closing, rescission, or termination of this Agreement, and shall continue to be binding and in full force and effect in perpetuity with respect to Contractor and its successors.

18. Insurance.

a. Contractor shall carry workers’ compensation insurance as required by law for the protection of its employees during the progress of the work. Contractor understands that it is an independent contractor and not entitled to any workers’ compensation benefits under any City program.

b. Contractor shall maintain during the life of this Agreement the following minimum amount of comprehensive general liability insurance or commercial general liability insurance: the greater of (1) Two Million Dollars ($2,000,000) per occurrence; or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage and be written on an occurrence basis.

c. Contractor shall maintain during the life of this Agree ment, the following minimum amount of automotive liability insurance: the greater of (1) a combined single limit of One Million Dollars ($1,000,000); or (2) all the insurance coverage and/or limits carried by or available to Contractor. Said insurance shall cover bodily injury, death and property damage for all owned, non - owned and hired vehicles and be written on an occurrence basis.

d. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of Contractor under this Agreement.

e. Each policy of general liability and automotive liability shall provide that City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, but only with respect to the work performed by Contractor under this Agreement. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 18.b and c, above, shall apply to City as an additional insured. Any umbrella liability insurance that is provided as part of the general or automobile liability minimums set forth herein shall be maintained for the duration of the Agreement.

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f. Reserved.

g. The insurance policies maintained by Contractor shall be primary insurance and no insurance held or owned by City shall be called upon to cover any loss under the policy. Contractor will determine its own needs in procurement of insurance to cover liabilities other than as stated above.

h. Before Contractor performs any work or prepares or delivers any materials, Contractor shall furnish certificates of insurance and endorsements, as required by City, evidencing the aforementioned minimum insurance coverages on forms acceptable to City, which shall provide that the insurance in force will not be canceled or allowed to lapse without at least ten (10) days’ prior written notice to City.

i. All insurance maintained by Contractor shall be issued by companies admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide.

j. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Agreement unless otherwise directed by City. In such a case, City may procure insurance or self -insure the risk and charge Contractor for such costs and any and all damages resulting therefrom, by way of set-off from any sums owed Contractor.

k. Contractor agrees that in the event of loss due t o any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

l. Contractor shall include all subcontractors, if any, as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor to City for review and approval. All coverages for subcontractors shall be subject to all of the requirements stated herein.

19. Termination. City may for any reason terminate this Agreement by giving Contractor not less than five (5) days ’ written notice of intent to terminate. Upon receipt of such notice, Contractor shall immediately cease work, unless the notice from City provides otherwise. Upon the termination of this Agreement, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Agreement, unless termination by City shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.

20. Maintenance and Inspection of Records . In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records, and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Agreement. City and its authorized representatives shall have access to and the right to audit and reproduce any of Contractor's records regarding the services provided under this Agreement. Contractor shall maintain all such records for a period of at least three (3) ye ars after termination or completion of this Agreement. 42 7
Contractor agrees to make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days ’ notice from City, and copies thereof shall be furnishe d if requested.

21. Compliance with Laws/Background.

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws which may apply to the performance of this Agreement.

b. The work provided for in this Agreement constitutes a “public works,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid, t o the extent Contractor’s employees will perform any work that falls withi n any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that it, and any subcontractor under it, shall pay not less than the specified prevailing rates of wages to all such workers and shall comply with all statutory requirements thereunder . Statutory provisions for penalties for failure to comply with prevailing wage laws will be enforced. The general prevailing wage determinations for c rafts can be located on the web site of the Department of Industrial Relations (www.dir.ca.gov/DLSR).

Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

c. Contractor represents and warrants that it:

(1) Has complied and shall at all times during the term of this Agreement comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Agreement who is ineligible to work in the United States or under the terms of this Agreement; and

(3) Has properly maintained, and shall at all times during t he term of this Agreement properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I-9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times during the term of this Agreement respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I-9 compliance and/or worksite enforcement by the Department of Homeland Security, the Department of Labor, or the Social Security Administration.

d. Contractor shall, upon request of City, provide a list of all employees working under this Agreement and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.
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e. Contractor shall require all subcontractors to make the same representations and warranties as set forth herein.

f. If Contractor or subcontractor knowingly employs an employee providing work under this Agreement who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee, that shall constitute a material breach of this Agreement and may be cause for immediate termination of this Agreement by City.

g. All personnel performing any services to City under this Contract shall possess sufficient experience and security records to perform the work at public facilities. Contractor shall conduct and complete, to City’s satisfaction, sufficient background checks to ensure no personnel performing services under this Contract is listed on the National Sex Offender Public Registry (“NSOPR”). Contractor shall monitor personnel security records to ensure no existing or new employees performing services under this Contract are added to the NSOPR or convicted of any crimes that would disqualify them from adhering to conduct conducive to public safety.

h. All costs associated with the documentat ion and verification required herein shall be borne by Contractor. Contractor shall require all subcontractors to provide the same documentation and verification when hired to perform services under this Contract. City has the right, in its sole and absolute discretion, to reject any employee of Contractor assigned to perform services for City, with or without cause, at the time of such assignment or at any time thereafter, and Contractor shall remove that employee from providing services to City to the e xtent permitted by law and any applicable collective bargaining agreement. City’s rights under this Article shall not be exercised in an arbitrary or capricious manner, or with the intent of forcing a termination of this Contract

i. Contractor agrees to indemnify and hold City, its officials, and employees harmless for, of and from any loss, including but not limited to fines, penalties and corrective measures, City may sustain by reason of Contractor's failure to comply with said laws, rules and regulations in connection with the performance of this Agreement.

22. Governing Law and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California and Contractor agrees to submit to the jurisdiction of California courts. Venue for any dispute arising under this Agreement shall be in Orange County, California.

23. Integration. This Agreement constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the work t o be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any work performed which is inconsistent with or in violation of the provisions of this Agreement shall not be compensated.

24. Notice. Except as otherwise provided herein, all notices required under this Agreement shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the not ice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within 3 days of deposit 44 9
in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.

“CONTRACTOR” “CITY”

California Waters Development, Inc. dba City of Orange California Waters 300 E. Chapman Avenue
23311 E. La Palma Ave. Orange, CA 92866-1591
Yorba Linda, CA 92887
Attn.: Jeff Barman Attn.: Nathan Bluhm, Senior Project Landscape Coordinator

Telephone: 949-528-0900 Telephone: 714-532-6491
E-Mail: [email protected] E-Mail: [email protected]

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimi le and electronic mail shall have the same effect as original signatures.

[Remainder of page intentionally left blank; signatures on next page]

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IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

CALIFORNIA WATERS DEVELOPMENT, CITY OF ORANGE, a municipal corporation INC. a California corporation, doing business
as CALIFORNIA WATERS

*By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Mary Binning, Senior Assistant City Attorney

*NOTE: The City requires the following signature(s) on behalf of the Contractor:
-- (1) the Chairman of the Board, the President or a Vice -President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. 46 EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
47 Exhibit A

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48 Exhibit A

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49 Exhibit A

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50 Exhibit A

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51 Exhibit A

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52 Exhibit A

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53 Exhibit A

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54 Exhibit A

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55 Exhibit A

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56 Exhibit A

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57 Exhibit A

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58 Exhibit A

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59 Exhibit A

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60 Exhibit A

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68 EXHIBIT “B”

COMPENSATION FOR SERVICES

[Beneath this sheet.]
69 Compensation for CALIFORNIA WATER DEVELOPMENT, INC., dba

CALIFORNIA WATERS

Fountain Maintenance Services for City Fountains
4-year Term
March 1, 2022 to February 28, 2026

Base Bid Contingency
(20%)
Total Not
to Exceed
Year 1: 3/2022 through 2/2023 $15,240 $3,048 Up to $18,288 Year 2: 3/2023 through 2/2024 $15,697 $3,139.40 Up to $18,836.40 Year 3: 3/2024 through 2/2025 $16,168 $3,233.60 Up to $19,401.60 Year 4: 3/2025 through 2/2026 $16,654 $3,330.80 Up to $19,984.80 4-year Total $63,759 $12,751.80 Up to $75,510.80

Exhibit B

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70 Agenda Item
City Council
Item #: 3.5. 1/11/2022 File #: 22-0006
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Support agreement with SidePath, Inc. for the Civic Center and Police Department storage area networks (SAN).

2. SUMMARY
The support agreement for the Civic Center and Police Department storage area network (SAN) expires on January 31, 2022. This agreement will extend the support agreement, which includes technical support, software support and upgrades, and 24/7 hardware replacement, for one year.

3. RECOMMENDED ACTION
Approve the agreement with SidePath, Inc. in the amount of $51,530.44 for the period of February 1, 2022 through January 31, 2023.

4. FISCAL IMPACT
The total expenditure for this agreement is $51,530.44 and will be funded through Information Systems Operations (780).

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
c: Enhance technology to improve public accessibility to information and services.

6. DISCUSSION AND BACKGROUND
The Dell/Compellent SAN platforms at Civic Center and Orange PD are the primary storage solutions for all of the City’s servers. The support agreement includes software support as well as 24/7 hardware replacement, with a guaranteed four hour response time. Hardware replacements include vendor installation and configuration in the event of a failure.

The current support agreement expires on January 31, 2022. The City has 30 days after expiration to renew without incurring a reinstatement fee. This proposed agreement would extend support of the storage area network through January 31, 2023 at a cost increase of 11% over current contract. This increase is larger than previous years as the Civic Center SAN will be reaching end of life in March 2022 and Dell is extending support beyond their standard practice.

7. ATTACHMENTS
City of Orange Printed on 1/5/2022Page 1 of 2
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71 Item #: 3.5. 1/11/2022 File #: 22-0006
· SidePath Quotations
City of Orange Printed on 1/5/2022Page 2 of 2
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72 Agenda Item
City Council
Item #: 3.5. 1/11/2022 File #: 22-0006
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Support agreement with SidePath, Inc. for the Civic Center and Police Department storage area networks (SAN).

3. RECOMMENDED ACTION
Approve the agreement with SidePath, Inc. in the amount of $51,530.44 for the period of February 1, 2022 through January 31, 2023.

4. FISCAL IMPACT
The total expenditure for this agreement is $51,530.44 and will be funded through Information Systems Operations (780).

5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
c: Enhance technology to improve public accessibility to information and services.

7. ATTACHMENTS
City of Orange Printed on 1/5/2022Page 1 of 2
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73 Item #: 3.5. 1/11/2022 File #: 22-0006
· SidePath Quotations
City of Orange Printed on 1/5/2022Page 2 of 2
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74 Quotation
Date:12/20/2122892 Mill Creek DriveLaguna Hills, CA 92653 Quotation #:SIDQ36831Phone (949) 748-8700; Fax (949) 748-8706www.sidepath.com Valid Until:01/31/22Prepared By:Jessica DentisProject ID:SIDPROJECT34023 Ship To:Bill To:City of Orange City of OrangeSteven Scardina Attn:Steven ScardinaAttn:300 E. Chapman AvenueOrange, CA 92866 300 E. Chapman AvenueOrange, CA 92866Phone:(714) 744-2283 Phone:(714) 744-2283Email:[email protected] Email:[email protected], CA - System #8279/#9305- Current Support Agreement Expires on01/31/2022Qty Item Code Description Coverage Dates TermHardware & Drives 2 1 yearCT-SC9000-BASE-MTCH ProSupport, 24x7, Dell Storage SC9000(Service Tag #s: FDPKHQ2, FDPLHQ2) 02/01/2022 - 01/31/2023 4 1 yearEN-SC200-1235-MTCH ProSupport, 24x7, Enclosure, SC200, 3.5" 12-bay(Service Tag #s: BRPFHQ2, BRPGHQ2, BRPHHQ2, BRQ9HQ2) 02/01/2022 - 01/31/2023 2 1 yearEN-SC200-1235-MTCH ProSupport, 24x7, Enclosure, SC200, 3.5" 12-bay(Service Tag #s: 6WPRW52, 6WPQW52) 02/01/2022 - 01/31/2023 1 1 yearEN-SC220-2425-MTCH ProSupport, 24x7, Enclosure, SC220, 2.5" 24-bay(Service Tag #: 2LGM282) 02/01/2022 - 01/31/2023 $22,192.67Onsite SupportSoftware 1 1 yearSW-CORE-BASE-F-MTCS Support, 24x7, SW, Storage Center OS Core 02/01/2022 - 01/31/2023 1 1 yearSW-OPTIMIZATION-BNDL-MTCS Support, 24x7, SW, Storage Optimization Bundle 02/01/2022 - 01/31/2023 1 1 yearSW-RIR-LIC-ALC-MTCS Support, 24x7, SW, Remote Instant Replay License 02/01/2022 - 01/31/2023 $13,464.59Support Center 1 1 yearDiscount Discount -$3,244.81 02/01/2022 - 01/31/2023

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Orange, CA - System #8279/#9305- Current Support Agreement Expires on01/31/2022Qty Item Code Description Coverage Dates Term Support Renewal Total $32,412.45Note: Dell Compellent has transitioned to a different Support Renewal structure as follows: 1) "Base" Items - Renewal pricing for hardware will only show support pricing for Compellent “base” items, whichinclude controllers, enclosures and NAS gateways. This support pricing will cover the associated drives and IOcards within the “base” items, as applicable.2) Support quotes are valid up to the date the system’s support expires. 3) If the support has expired, customer will not receive support when they call in to Compellent Copilot SupportServices.4) Once the support has expired, the renewal date will begin when Compellent has processed a purchase order.Back-dating to the support expiration date is no longer available. 5) Reinstatement fees will be applied to any Support Contract that has expired for more than 30 days. 6) Renewal pricing only covers items that are “in use” at the time of quote generation.

Coverage Type is: Zone 1, ProSupport* 24x7 w/ Priority On-Site (4 hour)Terms and Conditions are identical to those currently in force.Payment Terms from Ship Date/Order Placement Date:Net 30 If you have any questions regarding this quotation, please contact:Patrick Mulvee(213) [email protected] THANK YOU FOR YOUR BUSINESS!

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Quotation
Date:12/27/2122892 Mill Creek DriveLaguna Hills, CA 92653 Quotation #:SIDQ36835-01Phone (949) 748-8700; Fax (949) 748-8706www.sidepath.com Valid Until:01/31/22Prepared By:Jessica DentisProject ID:SIDPROJECT34027 Ship To:Bill To:City of Orange City of OrangeSteven Scardina Attn:Steven ScardinaAttn:300 E. Chapman AvenueOrange, CA 92866 300 E. Chapman AvenueOrange, CA 92866Phone:(714) 744-2283 Phone:(714) 744-2283Email:[email protected] Email:[email protected], CA - System #7380/#7381- Current Support Agreement Expires on01/31/2022Qty Item Code Description Coverage Dates TermHardware & Drives 2 11 Months CT-SC8000-MTCH ProSupport, 24x7, Dell/Compellent Series SC8000(Service Tag #s: 87HS282, 87HR282) 02/01/2022 - 03/31/2022 6 11 Months EN-SC200-1235-MTCH ProSupport, 24x7, Enclosure, SC200, 3.5" 12-bay(Service Tag #s: 87BP282, 87BQ282, 87BR282, 87BS282,87CM282, 87CN282) 02/01/2022 - 03/31/2022 1 11 Months EN-SC220-2425-MTCH ProSupport, 24x7, Enclosure, SC220, 2.5" 24-bay(Service Tag #: BRPDHQ2) 02/01/2022 - 03/31/2022 1 11 Months EN-SC220-2425-MTCH ProSupport, 24x7, Enclosure, SC220, 2.5" 24-bay(Service Tag #: 87CP282) 02/01/2022 - 03/31/2022 $3,418.47Onsite SupportSoftware 1 11 Months SW-CORE-BASE-MTCS Support, 24x7, SW, Core Bundle Base License 02/01/2022 - 03/31/2022 10 11 Months SW-CORE-EXP-MTCS Support, 24x7, SW, Core Bundle Expansion License 02/01/2022 - 03/31/2022 1 11 Months SW-DAPR-BASE-MTCS Support, 24x7, Data Progression Base License 02/01/2022 - 03/31/2022 10 11 Months SW-DAPR-EXP-MTCS Support, 24x7, Data Progression Exp License 02/01/2022 - 03/31/2022 1 11 Months SW-EMGR-CB-MTCS Support, 24x7, Enterprise Mgr Chargeback License 02/01/2022 - 03/31/2022 1 11 Months SW-FAST-BASE-MTCS Support, 24x7, FastTrack Base License 02/01/2022 - 03/31/2022 10 11 Months SW-FAST-EXP-MTCS Support, 24x7, FastTrack Exp License 02/01/2022 - 03/31/2022 1 11 Months SW-RIRA-BASE-MTCS Support, 24x7, Remote Instant Replay Base License 02/01/2022 - 03/31/2022 10 11 Months SW-RIRA-EXP-MTCS Support, 24x7, Remote Instant Replay Exp License 02/01/2022 - 03/31/2022 1 11 Months SW-RMSV-EN-MTCS Support, 24X7, Replay Manager Enterprise License, Unlimited 02/01/2022 - 03/31/2022 $4,460.42Support CenterPost Standard Support - Orange, CA - System #7380/#7381 - ProSupport Support Expires on 3/31/2022.*** Support is Hardware Break/Fix Only - No Software or Firmware Support ***Post Standard Support 2 11 Months SC8000 Controller PSSRenewal SC8000 Controller - PSS Renewal - Post Standard Support:4-Hour 7x24 On-Site Service After Problem Diagnosis with PostStandard Support: 7x24 HW Technical Support and Assistance.(Service Tag #s: 87HS282, 87HR282) 04/01/2022 - 12/31/2022
6 11 Months SC200 PSS Renewal SC200 - PSS Renewal - Post Standard Support: 4-Hour 7x24On-Site Service After Problem Diagnosis with Post StandardSupport: 7x24 HW Technical Support and Assistance.(Service Tag #s: 87BR282, 87BS282, 87CN282, 87BQ282,87BP282, 87CM282) 04/01/2022 - 12/31/2022

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Orange, CA - System #7380/#7381- Current Support Agreement Expires on01/31/2022Qty Item Code Description Coverage Dates Term 2 11 Months SC220 PSS Renewal SC220 - PSS Renewal - Post Standard Support: 4-Hour 7x24On-Site Service After Problem Diagnosis with Post StandardSupport: 7x24 HW Technical Support and Assistance.(Service Tag #s: BRPDHQ2, 87CP282) 04/01/2022 - 12/31/2022
$11,239.10Post Standard Support
Support Renewal Total $19,117.99Note: Dell Compellent has transitioned to a different Support Renewal structure as follows: 1) "Base" Items - Renewal pricing for hardware will only show support pricing for Compellent “base” items, whichinclude controllers, enclosures and NAS gateways. This support pricing will cover the associated drives and IOcards within the “base” items, as applicable.2) Support quotes are valid up to the date the system’s support expires. 3) If the support has expired, customer will not receive support when they call in to Compellent Copilot SupportServices.4) Once the support has expired, the renewal date will begin when Compellent has processed a purchase order.Back-dating to the support expiration date is no longer available. 5) Reinstatement fees will be applied to any Support Contract that has expired for more than 30 days. 6) Renewal pricing only covers items that are “in use” at the time of quote generation.

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Agenda Item
City Council
Item #: 3.6. 1/11/2022 File #: 22-0007
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Gary A. Sheatz, City Attorney

1. SUBJECT
First Amendment to Attorney Services Agreement with The Sohagi Law Group to provide legal services related to a California Environmental Quality Act (CEQA) challenge to the approval of the Ronald McDonald House expansion.

2. SUMMARY
The City currently has an agreement with The Sohagi Law Group, to provide legal services related to CEQA challenge to the approval of the Ronald McDonald House expansion, for an amount not to exceed $30,000. This matter is actively litigated, and includes settlement negotiations and discussions between the City, Real Party in Interest, and several of the Petitioners, and the amount of the original agreement will soon be expended. The proposed First Amendment will increase the agreement amount by $50,000 for a total amount not to exceed $80,000.

3. RECOMMENDED ACTION

1. Approve a First Amendment to Attorney Services Agreement with The Sohagi Law Group in the amount of $50,000 and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $50,000 from the General Fund unreserved fund balance to expenditure account number 100.0301.51600.00000, General Fund - Legal Services.

4. FISCAL IMPACT
The total expenditure for this amendment is $50,000 and will be funded through General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a. Expend fiscal resources responsibly.

6. DISCUSSION AND BACKGROUND
While the City Attorney’sOffice handles most litigation matters in-house, the City does contract with outside counsel when the complexity of a case or a significant burden to staff time requires additional staffing expertise. The litigation in this case involves allegations under the California Environmental Quality Act (CEQA) and as is common with CEQA litigation, requires the time consuming compilation of an extensive administrative record, a lengthy briefing schedule, and preparation for trial scheduled under a compressed timeline. The CEQA litigation process involves technical issues and complex remedies which are time consuming and would over-burden in-house legal staff.

The City has retained the law firm of The Sohagi Law Group to provide legal services with respect to City of Orange Printed on 1/6/2022Page 1 of 2
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79 Item #: 3.6. 1/11/2022 File #: 22-0007
The City has retained the law firm of The Sohagi Law Group to provide legal services with respect to litigation defense in the matter of Acken, et al., v. City of Orange. The Sohagi Law Group provides services to public entities exclusively, specializing in CEQA litigation.

The First Amendment of the agreement, to increase the not to exceed amount to $80,000, is necessary to carry out further defense of the City in this case. Pursuant to the conditions of approval under the entitlements issued in the Ronald McDonald House expansion, the City will seek reimbursement of legal fees from Real Party in Interest related to the defense of the CEQA litigation.

7. ATTACHMENTS
· First Amendment to Attorney Services Agreement
City of Orange Printed on 1/6/2022Page 2 of 2
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80 Agenda Item
City Council
Item #: 3.6. 1/11/2022 File #: 22-0007
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Gary A. Sheatz, City Attorney

3. RECOMMENDED ACTION

1. Approve a First Amendment to Attorney Services Agreement with The Sohagi Law Group in the amount of $50,000 and authorize the Mayor and City Clerk to execute on behalf of the City.

2. Authorize the appropriation of $50,000 from the General Fund unreserved fund balance to expenditure account number 100.0301.51600.00000, General Fund - Legal Services.

4. FISCAL IMPACT
The total expenditure for this amendment is $50,000 and will be funded through General Fund (100).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a. Expend fiscal resources responsibly.

The City has retained the law firm of The Sohagi Law Group to provide legal services with respect to City of Orange Printed on 1/5/2022Page 1 of 2
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81 Item #: 3.6. 1/11/2022 File #: 22-0007
The City has retained the law firm of The Sohagi Law Group to provide legal services with respect to litigation defense in the matter of Acken, et al., v. City of Orange. The Sohagi Law Group provides services to public entities exclusively, specializing in CEQA litigation.

7. ATTACHMENTS
· First Amendment to Attorney Services Agreement
City of Orange Printed on 1/5/2022Page 2 of 2
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82 FIRST AMENDMENT
TO

ATTORNEY SERVICES AGREEMENT

THIS FIRST AMENDMENT TO ATTORNEY SERVICES AGREEMENT (the “First Amendment”) is made and entered into as of _______________, 2022, by and between the CITY OF ORANGE, a municipal corporation (“City”), a nd THE SOHAGI LAW GROUP, a Professional Law Corporation (“Law Firm”), with reference to the following:

A. City and Law Firm entered into an Attorney Services Agreement (Agreement No. 7247) dated as of August 24, 2021, which is incorporated herein by this reference (the “Original Agreement”); and

B. City and Law Firm desire to amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement by increasing the compensation.

NOW, THEREFORE, the parties hereby agree as follows:

Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement.

Section 2. Cross-References. City and Law Firm agree that all references in this First Amendment are deemed and construed to refer to the Original Agreement, as implemented by this First Amendment.

Section 3. Compensation. The total not -to-exceed compensation for the services to be rendered as set forth in Section II.A. of the Original Agreement is increased by FIFTY THOUSAND DOLLARS and 00/100 ($50,000) and Section 2.a is hereby amended in its entirety to read as follows:

“Law Firm’s total compensation for all services performed under this Agreement, shall not exceed EIGHTY THOUSAND DOLLARS and 00/100 ($80,000) without the prior written authorization of City.”

Section 6. Integration. This First Amendment amends, as set forth herein, the Original Agreement and, except as specifically amended hereby, the Original Agreement shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this First Amendment and the terms and provisions of the Original Agreement, the terms and provisions of this First Amendment shall control and govern the rights and obligations of the parties.

[Signatures on next page]

83 IN WITNESS of this Agreement, the parties enter into this First Amendment on the year and day first above written.

“LAW FIRM” “CITY”

THE SOHAGI LAW GROUP, a Professional CITY OF ORANGE, a municipal corporation Law Corporation

By: By:

Printed Name: Mark A. Murphy, Mayor
Title:

By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Gary A. Sheatz, City Attorney
84 Agenda Item
City Council
Item #: 3.7. 1/11/2022 File #: 21-0691
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
Appropriation of $129,124.32 in State of California Office of Emergency Services funding received.

2. SUMMARY
Costs for strike team and individual overhead deployments represent non-budgeted expenditures for the Fire Department. These costs are reimbursed by the State of California Office of Emergency Services at a later date. Staff is requesting that funds be appropriated into the appropriate expenditure accounts for Fiscal Year 2021-2022.

3. RECOMMENDED ACTION

1. Accept into the City’s revenue budget $129,124.32 in strike team reimbursement funds from the California Office of Emergency Services (Cal-OES), into the revenue account numbers for Cal -OES reimbursements as specified in Section 6 of the staff report.

2. Authorize the appropriation of $128,170.72 into the expenditure account number for Overtime- Safety as specified in Section 6 of the staff report.

3. Authorize the appropriation of $953.60 into the expenditure account number for Strike Team Expenditures as specified in Section 6 of the staff report.

4. FISCAL IMPACT
The total appropriations for this reimbursement are funded by the additional revenue received from the State of California Office of Emergency Services.

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a. Provide staffing and resources to deliver services that ensure public safety.

6. DISCUSSION AND BACKGROUND
The Orange City Fire Department is a party to a state-level agreement with the State of California Office of Emergency Services (Cal-OES) to provide fire and emergency assistance to state and federal fire agencies. This agreement is managed by Cal-OES and referred to as the California Fire Assistance Agreement (CFAA). Under this agreement, the Orange City Fire Department generally provides resources two different ways: Strike Teams and Individual Overhead.

Strike team deployments involve an Engine Company, or a Battalion Chief, or a Deputy Chief City of Orange Printed on 1/5/2022Page 1 of 2
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85 Item #: 3.7. 1/11/2022 File #: 21-0691
Strike team deployments involve an Engine Company, or a Battalion Chief, or a Deputy Chief responding to an incident with their vehicle, as part of a multi-agency team. Individual Overhead resources respond to fill a specific role for an incident, such as Safety Officer or Line Emergency Medical Technician (EMT).

Upon return from an incident, reimbursement paperwork and invoices are submitted to Cal-OES. The Fire Department recently received a reimbursement payment for the McFarland Fire for $129,124.32.

Staff is requesting that funds be appropriated into the appropriate expenditure accounts for Fiscal Year 2021-2022. The additional funds will reimburse Fire Department overtime and travel expenditures incurred during these incidents.

Staff recommends acceptance of revenue and appropriation of expenditures as follows:

Cal-OES reimbursements for the McFarland Fire:
$ 129,124.32 100.3024.48212.40276 - Reimbursement from Cal EMA $ 128,170.72 100.3024.50221.40276 - Overtime-Safety
$ 953.60 100.3024.53860.40276 - Strike Team (expenditures)

7. ATTACHMENTS
· None
City of Orange Printed on 1/5/2022Page 2 of 2
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86 Agenda Item
City Council
Item #: 3.7. 1/11/2022 File #: 21-0691
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Sean deMetropolis, Fire Chief

1. SUBJECT
Appropriation of $129,124.32 in State of California Office of Emergency Services funding received.

3. RECOMMENDED ACTION

1. Accept into the City’s revenue budget $129,124.32 in strike team reimbursement funds from the California Office of Emergency Services (Cal-OES), into the revenue account numbers for Cal -OES reimbursements as specified in Section 6 of the staff report.

2. Authorize the appropriation of $128,170.72 into the expenditure account number for Overtime- Safety as specified in Section 6 of the staff report.

3. Authorize the appropriation of $953.60 into the expenditure account number for Strike Team Expenditures as specified in Section 6 of the staff report.

4. FISCAL IMPACT
The total appropriations for this reimbursement are funded by the additional revenue received from the State of California Office of Emergency Services.

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a. Provide staffing and resources to deliver services that ensure public safety.

Strike team deployments involve an Engine Company, or a Battalion Chief, or a Deputy Chief City of Orange Printed on 1/5/2022Page 1 of 2
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87 Item #: 3.7. 1/11/2022 File #: 21-0691
Strike team deployments involve an Engine Company, or a Battalion Chief, or a Deputy Chief responding to an incident with their vehicle, as part of a multi-agency team. Individual Overhead resources respond to fill a specific role for an incident, such as Safety Officer or Line Emergency Medical Technician (EMT).

Upon return from an incident, reimbursement paperwork and invoices are submitted to Cal-OES. The Fire Department recently received a reimbursement payment for the McFarland Fire for $129,124.32.

Staff recommends acceptance of revenue and appropriation of expenditures as follows:

7. ATTACHMENTS
· None
City of Orange Printed on 1/5/2022Page 2 of 2
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88 Agenda Item
City Council
Item #: 3.8. 1/11/2022 File #: 22-0005
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Leslie Hardy, Acting Community Services Director

1. SUBJECT
Appropriation of $38,799.29 in Senior Mobility Program funds.

2. SUMMARY
Staff is recommending the appropriation of Measure M2 sales tax revenue in the amount of $38,799.29, received through the Senior Mobility Program administered by the Orange County Transportation Authority for the Senior Transportation Program.

3. RECOMMENDED ACTION
Authorize the appropriation of $38,799.29 from the Traffic Improvement-Measure M2 unreserved fund balance to the following expenditure accounts for Traffic Improvement-Measure M2:
$91.70 263.7041.51780.20385 - Sr. Transportation 18-19 $17,253.20 263.7041.51780.20412 - Sr. Transportation 19-20 $21,454.39 263.7041.51780.30151 - Sr. Transportation 20-21

4. FISCAL IMPACT
The total appropriations for this program are funded by the revenue received from the Orange County Transportation Authority.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community a: Renovate, maintain, develop, and/or expand public use places and spaces.

6. DISCUSSION AND BACKGROUND
Measure M2 Funds through the Senior Mobility Program (SMP) The City entered into an agreement with Orange Elderly Services (OES) to administer the Senior Transportation Program using Measure M2 sales tax revenue funds, which the City receives from Orange County Transportation Authority (OCTA) through the Senior Mobility Program (SMP).

Historically, the City budgets for approximately $120,000 in annual Measure M2 revenues and expenditures for this program, based on estimated revenue OCTA provides to City staff. Any additional amount received or earned in interest must be appropriated through City Council action and all funds are required to be spent within three years of receipt.

To date for the applicable program years, the City has collected and earned a total of $38,799.29 in City of Orange Printed on 1/6/2022Page 1 of 2
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89 Item #: 3.8. 1/11/2022 File #: 22-0005
To date for the applicable program years, the City has collected and earned a total of $38,799.29 in SMP revenue and interest in excess of budgeted appropriations. For SMP revenue collected in Fiscal Year 2018-2019, the City earned a total of $91.70 in interest on SMP revenue over the budgeted amount. Additionally, for revenue collected during Fiscal Years 2019-2020 and 2020-2021, the City accumulated and earned a total of $17,253.20 and $21,454.39, respectively, in revenue and in interest beyond the existing appropriation. Therefore, a total of $38,799.29 in SMP revenue and interest needs to be appropriated to spend the funds within the three-year period.

7. ATTACHMENTS
· None
City of Orange Printed on 1/6/2022Page 2 of 2
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90 Agenda Item
City Council
Item #: 3.8. 1/11/2022 File #: 22-0005
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Leslie Hardy, Acting Community Services Director

1. SUBJECT
Appropriation of $38,799.29 in Senior Mobility Program funds.

3. RECOMMENDED ACTION
Authorize the appropriation of $38,799.29 from the Traffic Improvement-Measure M2 unreserved fund balance to the following expenditure accounts for Traffic Improvement-Measure M2:
$91.70 263.7041.51780.20385 - Sr. Transportation 18-19
$17,253.20 263.7041.51780.20412 - Sr. Transportation 19-20 $21,454.39 263.7041.51780.30151 - Sr. Transportation 20-21

4. FISCAL IMPACT
The total appropriations for this program are funded by the revenue received from the Orange County Transportation Authority.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community a: Renovate, maintain, develop, and/or expand public use places and spaces.

To date for the applicable program years, the City has collected and earned a total of $38,799.29 in City of Orange Printed on 1/5/2022Page 1 of 2
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91 Item #: 3.8. 1/11/2022 File #: 22-0005
To date for the applicable program years, the City has collected and earned a total of $38,799.29 in SMP revenue and interest in excess of budgeted appropriations. For SMP revenue collected in Fiscal Year 2018-2019, the City earned a total of $91.70 in interest on SMP revenue over the budgeted amount. Additionally, for revenue collected during Fiscal Years 2019-2020 and 2020-2021, the City accumulated and earned a total of $17,253.20 and $21,454.39, respectively, in revenue and in interest beyond the existing appropriation. Therefore, a total of $38,799.29 in SMP revenue and interest needs to be appropriated to spend the funds within the three-year period.

7. ATTACHMENTS
· None
City of Orange Printed on 1/5/2022Page 2 of 2
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92 Agenda Item
City Council
Item #: 3.9. 1/11/2022 File #: 21-0692
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Approval of plans and specifications for Fire Station No. 5 Bathroom Remodel, and authorization to advertise for bids.

2. SUMMARY
Plans and specifications have been completed and the project is ready to advertise for bids. The total estimated construction cost, including 15% contingencies and construction management, is $140,000.

3. RECOMMENDED ACTION
Approve plans and specifications and authorize advertising for bids for Fire Station No. 5 Bathroom Remodel Project; Bid No. 21-22.24.

4. FISCAL IMPACT
The total expenditure for this project is $140,000 and will be funded in Fire Station Maintenance & Renovation (20334) through Fire Facility Fees (560).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
Fire Station No. 5 was built in 1968, along with other similar Fire Stations. Minimal improvements have been done to the locker room at this station since its construction. Due to aging infrastructure and partial plumbing failure, restrooms and showers have been impacted. It has been a challenge for Fire staff at this station due to the limited restroom capacity. This project will restore full functionality and accommodate for three gender-neutral restroom and shower stalls.

Construction is scheduled to begin in March 2022 and is expected to be completed in six weeks.

The proposed project is categorically exempt from the provisions of the California Quality Act (CEQA) under CEQA guidelines Section 15301 “Existing Facilities” Class 1(c). The Notice of exemption will City of Orange Printed on 1/5/2022Page 1 of 2
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93 Item #: 3.9. 1/11/2022 File #: 21-0692
be filed with the County Recorder’s Office upon Council’s approval of the plans and specifications.

Specifications and cost estimate are available for review through the Public Works Department.

7. ATTACHMENTS
· Location Map
City of Orange Printed on 1/5/2022Page 2 of 2
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94 Agenda Item
City Council
Item #: 3.9. 1/11/2022 File #: 21-0692
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Approval of plans and specifications for Fire Station No. 5 Bathroom Remodel, and authorization to advertise for bids.

3. RECOMMENDED ACTION
Approve plans and specifications and authorize advertising for bids for Fire Station No. 5 Bathroom Remodel Project; Bid No. 21-22.24.

4. FISCAL IMPACT
The total expenditure for this project is $140,000 and will be funded in Fire Station Maintenance & Renovation (20334) through Fire Facility Fees (560).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

Construction is scheduled to begin in March 2022 and is expected to be completed in six weeks.

The proposed project is categorically exempt from the provisions of the California Quality Act (CEQA) under CEQA guidelines Section 15301 “Existing Facilities” Class 1(c). The Notice of exemption will City of Orange Printed on 1/5/2022Page 1 of 2
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95 Item #: 3.9. 1/11/2022 File #: 21-0692
be filed with the County Recorder’s Office upon Council’s approval of the plans and specifications.

Specifications and cost estimate are available for review through the Public Works Department.

7. ATTACHMENTS
· Location Map
City of Orange Printed on 1/5/2022Page 2 of 2
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96 Fire Station #5 Bathroom Remodel; Bid No. 21-22.24
Location Map

97 Agenda Item
City Council
Item #: 3.10. 1/11/2022 File #: 21-0693
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Approval of plans and specifications for Annual Sewer Maintenance, Fiscal Year 2021-2022; and authorization to advertise for bids.

2. SUMMARY
Plans and specifications have been completed and the project is ready to be advertised for bids. The total estimated construction cost including contingencies and construction engineering (15%) is $2,270,500.

3. RECOMMENDED ACTION
Approve plans and specifications and authorize advertising for bids for the Annual Sewer Maintenance, Fiscal Year 2021-2022; S-245; Bid No. 21-22.18.

4. FISCAL IMPACT
The total expenditure, including the 15% for contingency and construction engineering, for this project is $2,270,500 and will be funded in Sewer Line Maintenance & Replacement (15508) through Sewer Construction (520).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City prepared the Sewer Collection System Master Plan update in 2012 as a planning tool to mitigate potential cumulative impacts to the sewer collection system from the City’s2010 General Plan. The Sewer Master Plan identifies projects that replace the aging sewer infrastructure, pipes that are structurally deficient, and pipeline capacity enhancements. In addition to the Sewer Master Plan, the Public Works Engineering Division coordinates with the Public Works Field Services Division to ensure that field observations of the sewer hotspots and localized failures are identified and addressed as part of the Capital Improvement Program. The identified locations usually require a higher than normal level of maintenance for several reasons but generally due to offset joints, tree City of Orange Printed on 1/5/2022Page 1 of 2
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98 Item #: 3.10. 1/11/2022 File #: 21-0693
roots, broken sections, or being undersized.

Public Works has prepared plans and specifications to fix these problems by replacing approximately 5,000 linear feet of existing six-inch lines with eight-inch clay lines and approximately 1,000 linear feet of 15-inch lines with 18-inch clay lines. The scope of work would also include reconnecting all impacted service laterals.

The total estimated construction cost, including 15% for contingencies and construction engineering, is $2,270,500. Construction is scheduled to begin in June 2022 and is expected to be completed within 120 calendar days.

The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA guidelines Section 15301 “Existing Facilities” Class 1 (b). The Notice of Exemption will be filed with the County Recorder’sOffice upon Council’sapproval of the plans and specifications.

7. ATTACHMENTS
· Location Map
City of Orange Printed on 1/5/2022Page 2 of 2
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99 Agenda Item
City Council
Item #: 3.10. 1/11/2022 File #: 21-0693
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Approval of plans and specifications for Annual Sewer Maintenance, Fiscal Year 2021-2022; and authorization to advertise for bids.

3. RECOMMENDED ACTION
Approve plans and specifications and authorize advertising for bids for the Annual Sewer Maintenance, Fiscal Year 2021-2022; S-245; Bid No. 21-22.18.

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City prepared the Sewer Collection System Master Plan update in 2012 as a planning tool to mitigate potential cumulative impacts to the sewer collection system from the City’s2010 General Plan. The Sewer Master Plan identifies projects that replace the aging sewer infrastructure, pipes that are structurally deficient, and pipeline capacity enhancements. In addition to the Sewer Master Plan, the Public Works Engineering Division coordinates with the Public Works Field Services Division to ensure that field observations of the sewer hotspots and localized failures are identified and addressed as part of the Capital Improvement Program. The identified locations usually require a higher than normal level of maintenance for several reasons but generally due to offset joints, tree City of Orange Printed on 1/5/2022Page 1 of 2
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100
Item #: 3.10. 1/11/2022 File #: 21-0693
roots, broken sections, or being undersized.

The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA guidelines Section 15301 “Existing Facilities” Class 1 (b). The Notice of Exemption will be filed with the County Recorder’sOffice upon Council’sapproval of the plans and specifications.

7. ATTACHMENTS
· Location Map
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City of Orange Web Map
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Orange GIS105
Agenda Item
City Council
Item #: 3.11. 1/11/2022 File #: 21-0683
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Gary A. Sheatz, City Attorney

1. SUBJECT
Claims for Damages.

2. SUMMARY
Eight claims have been received and investigated by the City Attorney’s Office and/or the Risk Manager with the involved departments.

3. RECOMMENDED ACTION
Deny the following claims and refer to City Attorney and Claims Adjuster:

1. V.L. (minor)

2. David Nelson

3. Rita Consuelo Revilla

4. Evan Dominic Belli

5. Eric Daniel Pompei

6. Patricio Esqueda

7. Michael J. Padilla

8. Alyssa O’Hara

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.

6. DISCUSSION AND BACKGROUND

1. Claim for damages from V. L. (minor) alleging personal injury sustained when Claimant tripped and fell on a trail.

2. Claim for damages from David Nelson alleging property damage to sewer line due to City tree roots.

3. Claim for damages from Rita Consuelo Revilla alleging personal injury when Claimant fell in an OCTA bus.

4. Claim for damages from Evan Dominic Belli alleging personal injury when Claimant tripped and fell on a displacement between Claimant’s driveway and the roadway.

5. Claim for damages from Eric Daniel Pompei alleging property damage when a City tree fell City of Orange Printed on 1/5/2022Page 1 of 2
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Item #: 3.11. 1/11/2022 File #: 21-0683

5. Claim for damages from Eric Daniel Pompei alleging property damage when a City tree fell on Claimant’s vehicle during a high wind event.

6. Claim for damages from Patricio Esqueda alleging property damage when a City tree fell on Claimant’s vehicle during a high wind event.

7. Claim for damages from Michael J. Padilla alleging property damage to sewer line due to City tree roots.

8. Claim for damages from Alyssa O’Haraalleging property damage when a City tree branch fell on Claimant’s vehicle.

7. ATTACHMENTS
· None.

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Agenda Item
City Council
Item #: 3.11. 1/11/2022 File #: 21-0683
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Gary A. Sheatz, City Attorney

1. SUBJECT
Claims for Damages.

2. SUMMARY
Eight claims have been received and investigated by the City Attorney’s Office and/or the Risk Manager with the involved departments.

3. RECOMMENDED ACTION
Deny the following claims and refer to City Attorney and Claims Adjuster:

1. V.L. (minor)

2. David Nelson

3. Rita Consuelo Revilla

4. Evan Dominic Belli

5. Eric Daniel Pompei

6. Patricio Esqueda

7. Michael J. Padilla

8. Alyssa O’Hara

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.

6. DISCUSSION AND BACKGROUND

1. Claim for damages from V. L. (minor) alleging personal injury sustained when Claimant tripped and fell on a trail.

2. Claim for damages from David Nelson alleging property damage to sewer line due to City tree roots.

3. Claim for damages from Rita Consuelo Revilla alleging personal injury when Claimant fell in an OCTA bus.

4. Claim for damages from Evan Dominic Belli alleging personal injury when Claimant tripped and fell on a displacement between Claimant’s driveway and the roadway.

5. Claim for damages from Eric Daniel Pompei alleging property damage when a City tree fell City of Orange Printed on 1/5/2022Page 1 of 2
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Item #: 3.11. 1/11/2022 File #: 21-0683

5. Claim for damages from Eric Daniel Pompei alleging property damage when a City tree fell on Claimant’s vehicle during a high wind event.

6. Claim for damages from Patricio Esqueda alleging property damage when a City tree fell on Claimant’s vehicle during a high wind event.

7. Claim for damages from Michael J. Padilla alleging property damage to sewer line due to City tree roots.

8. Claim for damages from Alyssa O’Haraalleging property damage when a City tree branch fell on Claimant’s vehicle.

7. ATTACHMENTS
· None.

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Agenda Item
City Council
Item #: 3.12. 1/11/2022 File #: 21-0689
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to CT&T Concrete Paving, Inc. for Annual Concrete Replacement at Various Locations, Fiscal Year 2021-2022; Bid No. 21-22.19.

2. SUMMARY
Bids for the Annual Concrete Replacement Project Fiscal Year 2021-2022, SP-4181 were received and opened on December 9, 2021. Two bidders responded to the notice inviting bids. The apparent low bidder is CT&T Concrete Paving, Inc. of Pomona, California in the amount of $775,280.

3. RECOMMENDED ACTION

1. Authorize the appropriation of $100,000 from Unreserved Fund 263 Measure M2 to 263.5011.56330.13120 Pavement Management Program.

4. FISCAL IMPACT
The total expenditure for this contract is $852,808 and will be funded in Pavement Management Program (13120) and Contract Services through:

Measure M2 (263) $452,808
TSIP (287) 400,000
TOTAL $852,808

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City Council previously approved advertisement for bids on November 9, 2021. The project was publicly advertised for three weeks. The bids were opened on December 9, 2021. Two bidders City of Orange Printed on 1/5/2022Page 1 of 2
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publicly advertised for three weeks. The bids were opened on December 9, 2021. Two bidders responded as follows:

1. CT&T Concrete Paving, Inc. $775,280.00

2. CJ Concrete Construction, Inc.. $793,717.50
The low bid is about 20% higher than the Engineer’sEstimate of $645,140 for the project. This is likely due to increases in labor costs and prices of materials. Staff checked the references and qualifications for CT&T Concrete Paving, Inc. and found them to be acceptable, with adequate years of experience in completing contracts of a similar nature to this project. Therefore, staff recommends that CT&T Concrete Paving, Inc. be awarded the contract in the amount of $852,808, representing an original amount of $775,280 plus a 10% contingency of $77,528, for Annual Concrete Replacement Project Fiscal Year 2021-2022.

The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA guidelines Section 15301 “ExistingFacilities”Class 1. The CEQA Notice of Exemption has been filed with the County Clerk’s Office on November 12, 2021. The proposed project is also categorically excluded from the provisions of the National Environmental Policy Act (NEPA) under 24 CFR Section 58.35. Documentation of this determination is on file.

This project will replace all the needed concrete improvements such as sidewalks, ADA ramps, curbs and gutters, in preparation for the annual street pavement rehabilitation work to follow. Construction is scheduled to begin in February 2022 and is expected to be completed within 90 calendar days.

7. ATTACHMENTS
· Bid Abstract
· Contract with CT&T Concrete Paving, Inc.
· Location Maps
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Agenda Item
City Council
Item #: 3.12. 1/11/2022 File #: 21-0689
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Award of Contract to CT&T Concrete Paving, Inc. for Annual Concrete Replacement at Various Locations, Fiscal Year 2021-2022; Bid No. 21-22.19.

3. RECOMMENDED ACTION

1. Authorize the appropriation of $100,000 from Unreserved Fund 263 Measure M2 to 263.5011.56330.13120 Pavement Management Program.

4. FISCAL IMPACT
The total expenditure for this contract is $852,808 and will be funded in Pavement Management Program (13120) and Contract Services through:

Measure M2 (263) $452,808
TSIP (287) 400,000
TOTAL $852,808

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.

Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.

6. DISCUSSION AND BACKGROUND
The City Council previously approved advertisement for bids on November 9, 2021. The project was publicly advertised for three weeks. The bids were opened on December 9, 2021. Two bidders City of Orange Printed on 1/5/2022Page 1 of 2
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Item #: 3.12. 1/11/2022 File #: 21-0689
publicly advertised for three weeks. The bids were opened on December 9, 2021. Two bidders responded as follows:

1. CT&T Concrete Paving, Inc. $775,280.00

The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA guidelines Section 15301 “ExistingFacilities”Class 1. The CEQA Notice of Exemption has been filed with the County Clerk’s Office on November 12, 2021. The proposed project is also categorically excluded from the provisions of the National Environmental Policy Act (NEPA) under 24 CFR Section 58.35. Documentation of this determination is on file.

7. ATTACHMENTS
· Bid Abstract
· Contract with CT&T Concrete Paving, Inc.
· Location Maps
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City of Orange: Summary of Bid Abstracts for:
1 2
Bid No. 21-22.19; Project No. SP-4181
Date of Bid Opening: 12/9/2021
Tel. No. (909) 629-8000 Tel. No. (562) 777-2222
NO. DESCRIPTION OF WORK QUANTITY UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Sawcut, Remove and Replace Sidewalk
Access Ramp with Truncated Domes Per
City Standard Plan No. 121 (All Types)
80 EA 4,500.00$
$360,000.00
$6,190.00
$495,200.00
$6,100.00
$488,000.00
2 Sawcut, Remove and Replace Existing
Residential Sidewalk Per City Standard
Plan No. 118 & 120
10,310 SF 12.00$
$123,720.00
$14.00
$144,340.00
$10.25
$105,677.50
3 Sawcut, Remove and Replace Existing
Arterial Sidewalk Per City Standard Plan
No. 118 & 120
60 SF 12.00$
$720.00
$18.00
$1,080.00
$70.00
$4,200.00
4 Sawcut & Remove Existing and Construct
Residential Concrete Curb and Gutter,
Type A per City Standard Plan No. 117 (8"
or Match Existing Curb Height)
1,820 LF 65.00$
$118,300.00
$48.00
$87,360.00
$75.00
$136,500.00
5 Sawcut & Remove Existing and Construct
Arterial Concrete Curb and Gutter, Type
A per City Standard Plan No. 117 (8" or
Match Existing Curb Height)
300 LF 65.00$
$19,500.00
$48.00
$14,400.00
$85.00
$25,500.00
6 Sawcut Remove and Replace Existing
Concrete Cross Gutter and/or Spandrel
per City Standard Plan No. 119
100 SF 20.00$
$2,000.00
$25.00
$2,500.00
$25.00
$2,500.00
7 Remove Existing and Construct
Residential Concrete Driveway Apron Per
City Standard Plan No. 116
360 SF 15.00$
$5,400.00
$15.00
$5,400.00
$14.00
$5,040.00
8 Install Truncated Domes on Existing
Access Ramp per City Standard Plan No.
121
11 EA 500.00$
$5,500.00
$1,000.00
$11,000.00
$800.00
$8,800.00
9 Tree and Stump Removal 5 EA 2,000.00$ $10,000.00 $2,800.00 $14,000.00 $3,500.00 $17,500.00 $645,140.00 $775,280.00 $793,717.50Grand Total

ENGINEER'S ESTIMATE
Annual Concrete Replacement at Various Locations, FY 2021- 2022
CT&T Concrete Paving Inc.

Diamond Bar, Ca
CJ Concrete Construction, Inc.

Santa Fe Springs, Ca

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CONTRACT
[Annual Concrete Replacement at Various Locations, FY 2021-2022 (Bid No. 21-22.19)]

THIS CONTRACT (the “Contract”) is made and ente red into as of ___ ___________, 2022 (“Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and CT&T CONCRETE PAVING, INC., a California corporation (“Contractor”), who agree as follows.

ARTICLE 1
Work Performed

a. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by City, and under the conditions expressed in the two (2) bonds presented to City with this Contract and incorporated herein by this reference, Contractor hereby agrees to and shall do all the work and furnish all the labor, materials, tools and equipment, except such as are mentioned in the specifications to be furnished by City to Contractor, necessary to complete in good workmanship and substantial manner the work (the “Work”) described in:

(1) The latest edition of the "City of Orange Standard Plans and Specifications" (the “Orange Book”) with the term "Engineer," as used in the Orange Book and in this Contract, to specifically include the City Engineer (or his/her designee);

(2) The "Standard Specifications for Public Works Construction” (the “Green Book”), and all amendments thereto;

(3) The “Project Specifications, SP-4181;”

(4) The “Project Special Provisions;”

(5) The Standard Plans; and

(6) Contractor’s Bid Proposal, which is on file with City’s Department of Public Works.

b. Contractor acknowledges that it has received the Plans from City and that a complete copy of the Plans are in its possession and are hereby specifically referred to and by such reference made a part hereof. The Orange Book, Green Book and City of Orange Standard Special Provisions and Standard Plans are on file with City’s Public Works Director and are hereby specifically referred to and by such reference made a part hereof. Contractor hereby acknowledges that it has read, reviewed and understands the Plans, the Orange Book, the Green Book, the Special Provisions, the Standard Plans, and the Encroachment Permit as they relate to the Work, all of which documents shall be referred to herein collectively as the “Plans and Specifications.”

c. Contractor acknowledges the provisions of Chapter 8.28 of the Orange Municipa l Code which requires, among other things, that Contractor utilize City’s exclusive solid waste 115
2 hauler for the rental of bins for trash and debris removal and imposes mandatory recycling requirements for self-hauled construction and demolition waste. The terms and conditions set forth in this Contract shall control over any terms and conditions in the Plans and Specifications to the contrary.

d. The Work shall be performed in conformity with the Plans and Specifications and the Bid Proposal and all applicable laws, including any and all applicable federal and state labor laws and standards and applicable prevailing wage requirements and any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment.

e. Unless and until otherwise notified in writing by City’s Public Works Director, City’s Principal Engineer, Randy Nguyen (“Authorized City Representative”), shall be the person to whom Contractor will report for the performance of the Work hereunder. It is understood that Contractor’s performance hereunder shall be under the direction and supervision of the Authorized City Representative or such other person as City’s Public Works Director may de signate from time to time, that Contractor shall coordinate the Work hereunder with the Authorized City Representative to the extent required by the Authorized City Representative, and that all performances required hereunder by Contractor shall be perform ed to the satisfaction of the Authorized City Representative or City’s Public Works Director.

f. It is expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and Contractor’s Bid Proposal, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said Bid Proposal conflicting herewith.

ARTICLE 2
Commencement of Work

Contractor shall commence the Work provided for in this Contract within ten (10) days of the date of the issuance by City of a Notice to Proceed and diligently prosecute completion of the Work within Ninety (90) calendar days from such date, unless legal extension is granted in accordance with the terms set forth in th e Green Book. Time is of the essence in this Contract.

Contractor shall do all things necessary and incidental to the prosecution of Contractor's Work.

ARTICLE 3
Compensation

a. Contractor agrees to receive and accept an amount not to exceed SEVEN HUNDRED SEVENTY-FIVE THOUSAND TWO HUNDRED EIGHTY DOLLARS and 00/100 ($775,280.00) unless said amount is amended by Contract Change Order approved by the City, as compensation for furnishing all materials and doing all the Work contemplated and embraced in this Contract. Said compensation covers (1) all loss or damage arising out of the nature of the Work, from the acts of the elements; (2) any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by City, other than as provided below ; (3) all risks of every description connected with the Work; (4) all expenses 116
3 incurred by or in consequence of the suspension or discontinuance of the Work; and (5) well and faithfully completing the Work, and for the whole thereof, in the manner and according to the Plans and Specifications, and requirements of the Authorized City Representative under them.

Retention amounts shall be withheld from progress payments as required by law unless Contractor provides securities in lieu of retention.

b. In addition to the scheduled Work to be performed by the Contractor, the parties recognize that additional, unforeseen work and services may be required by the Authorized City Representative. In anticipation of such contingencies, the sum of SEVENTY-SEVEN THOUSAND FIVE HUNDRED TWENTY-EIGHT DOLLARS and 00/100 ($ 77,528.00) has been added to the total compensation of this Contract. The Authorized City Representative may approve the additional work and the actual costs incurred by the Contractor in performance of additional work or services in accordance with such amount as the Authorized City Representative and the Contractor may agree upon in advance. Said additional work or services and the amount of compensation therefor, up to the amount of the authorized contingency, shall be memorialized in the form of a Contract Amendment approved by the City Manager on a form acceptable to the City Attorney . The Contractor agrees to perform only that work or those services that are specifically requested by the Authorized City Representative. Any and all additional work and services performed under this Contract shall be completed in such sequence as to assur e their completion as expeditiously as is consistent with professional skill and care in accordance with a cost estimate or proposal submitted to and approved by the Authorized City Representative prior to the commencement of such Work or services.

c. The total amount of compensation under this Contract, including contingencies, shall not exceed EIGHT HUNDRED FIFTY-TWO THOUSAND EIGHT HUNDRED EIGHT DOLLARS and 00/100 ($852,808.00).

ARTICLE 4
Licenses

Contractor represents that it and any subcontractors it may engage, possess any and all licenses which are required under state or federal law to perform the Work contemplated by this Contract and that Contractor and subcontractors shall maintain all appro priate licenses, including a City of Orange business license, at its cost, during the performance of this Contract.

ARTICLE 5
Guarantees

a. Contractor guarantees the construction and installation of all Work included in the Plans and Specifications for which Contractor has been awarded this Contract.

b. Should any of the materials or equipment installed pursuant to this Contract prove defective or should the Work as a whole prove defective, due to faulty equ ipment, workmanship, materials furnished or methods of installations, or should said Work or any part thereof fail to function properly, as designed, due to any of the above causes within twelve (12) months after the date on which said Work is accepted by City, Contractor shall make repairs and furnish such 117
4 materials and equipment as are necessary to be furnished and installed within fifteen (15) calendar days after the receipt of a demand from City.

c. Said Work will be deemed defective within the meaning of this guarantee in the event that it fails to function as originally intended either by the Plans and Specifications of this Contract or by the manufacturer(s) of the equipment incorporated into the Work.

d. In the event repairs are not made within fifteen (15) calendar days after Contractor's receipt of a demand from City, City shall have the unqualified option to make any needed repairs or replacements itself or by any other contractor. Contractor shall reimburse City, upon demand, for all expenses i ncurred in restoring said Work to the condition contemplated in this Contract, including the cost of any equipment or materials replaced.

e. It is understood that emergency repairs may, by necessity, be made by City.

Therefore, when defective equipment, materials or workmanship result in emergency repairs by City, Contractor shall reimburse City, upon demand, for all expenses incurred. Emergency repairs will be deemed as those repairs determined by City’s Director of Public Works to be necessary due to a n immediate detriment to the health, safety, welfare or convenience of the residents of City.

ARTICLE 6
Water Quality

a. The Santa Ana Regional Water Quality Control Board (“RWQCB”) has issued National Pollutant Discharge Elimination System (“NPDES”) Per mit No. R8 -2009-0030 (the “Permit”), which governs storm water and non -storm water discharges resulting from municipal activities performed by City or its contractors. In order to comply with the Permit requirements, the County of Orange has prepared a Dr ainage Area Management Plan (“DAMP”), containing Model Maintenance Procedures with Best Management Practices (“BMPs”) that City and its contractors must adhere to. The Model Maintenance Procedures contain pollution prevention and source control techniques to minimize the impact of those activities upon dry -weather urban runoff, storm water runoff, and receiving water quality. Examples include: wash water from cleaning of sidewalks or parking lots must be collected and disposed of in the sewer or landscaped areas.

b. The Permit, the DAMP and the Model Maintenance Procedures are on file in the office of City’s Director of Public Works. Contractor hereby acknowledges that it has read, reviewed and understands the Permit, the DAMP and the Model Maintenance Procedures, as they relate to the Work and hereby shall perform the Work in conformance therewith.

ARTICLE 7
Independent Contractor; Contractor not Agent

a. At all times during the term of this Contract, Contractor shall be an independent contractor and not an employee of City. City shall have the right to control Contractor only insofar as the result of Contractor’s services rendered pursuant to this Contract. City shall not have the right to control the means by which Contractor accomplishes services rendered pursuant to this Contract. Contractor shall, at its sole cost and expense, furnish all facilities, materials and 118
5 equipment which may be required for furnishing services pursuant to this Contract. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its subcontractors, agents and employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Contractor acknowledges that Contractor and any subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of City, and that they shall not be entitled to any of t he benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long -term disability or workers' compensation insurance benefits.

b. Except as City may specify in writing, Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Contractor shall have no authority, express or implied, to bind City to any obligation whatsoever.

ARTICLE 8
Public Work; Prevailing Wage

a. The Work which is the subject of this Contract is a “public work,” as that term is defined in Section 1720 of the California Labor Code, for which prevailing wages must be paid.

To the extent Contractor’s employees will perform any work that falls within any of the classifications for which the Department of Labor Relations of the State of California promulgates prevailing wage determinations, Contractor hereby agrees that Contractor, and any s ubcontractor under it, shall pay not less than the specified prevailing ra tes of wages to all such workers . The general prevailing wage determinations for crafts can be located on the website of the Department of Industrial Relations ( www.dir.ca.gov/DLSR). Additionally, to perform work under this Contract, Contractor must meet all State registration requirements and criteria, including project compliance monitoring.

b. Attached hereto as Attachment No. 1 and incorporated herein by this reference is a copy of the provisions of Sections 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815 of the California Labor Code. Contractor hereby acknowledges that it has read, reviewed and understands those provisions of the Labor Code and shall prosecute and complete the Work under this Contract in strict compliance with all of those terms and provisions.

c. Contractor shall secure the payment of compensation to its employees in accordance with the provisions of Section 3700 of the California Labor Code. Accordingly, and as required by Section 1861 of the California Labor Code, Contractor hereby certifies as follows:

“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with suc h provisions before commencing the performance of the work of this contract.”

d. Contractor shall indemnify, protect, defend and hold harmless City and its officers, employees, contractors and agents, with counsel reasonably acceptable to City, from and against 119
6 any and all loss, liability, damage, claim, cost, expense, and/or “increased costs” (including reasonable attorney’s fees, court and litigation costs, and fees of expert witnesses) which result or arise in any way from the noncompliance by Contractor of any applicable local, state and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages). It is agreed by the parties that, in connection with the construction of the W ork which is the subject of this Contract, Contractor shall bear all risks of payment or non -payment of state prevailing wages. “Increased costs” as used in this paragraph shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time t o time. The foregoing indemnity shall survive termination of this Contract.

ARTICLE 9
Equal Employment Opportunity

During the performance of this Contract, Contractor agrees as follows:

Such actions shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Contractor shall post in conspicuous places, available to employees and applicants fo r employment, a notice setting forth provisions of this non-discrimination clause.

b. Contractor shall, in all solicitations and advertisements for employees placed by, or on behalf of Contractor, state that all qualified applicants will receive considera tion for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

c. Contractor shall cause the foregoing paragraphs (a) and (b) to be inserted in all subcontracts for any Work covered by this Contract, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials.

ARTICLE 10
Conflicts of Interest

Contractor agrees that it shall not make, participate in the making, or in any way attempt to use its position as a contractor to influence any decision of City in which Contractor knows or has reason to know that Contractor, its officers, partners, or employees have a financial interest as defined in Section 87103 of the Government Code. Contractor further agrees that it shall not be eligible to work as the builder for any project for which the design work is part of this Contract.

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7 ARTICLE 11
Indemnity

Contractor shall defend, indemnify and hold harmless City and its officers, officials, agents, and employees from and against:

a. Any and all claims, liabilities, losses, damages, penalties, costs or expenses (including reasonable attorneys' fees and court costs) which City may directly or indirectly sustain or suffer arising from or as a result of the death of any person or any accident, injury, loss or damage whatsoever caused to any person or the property of any person which shall occur on or adjacent t o the real property which is the subject of this Contract, or in connection with performance of this Contract which may be directly or indirectly caused by the acts or omissions of Contractor or its officers, employees, contractors or agents, or as a conse quence of any use, generation, manufacture, storage, disposal, release or threatened release of a hazardous waste or substance. Contractor shall not be responsible for (and such indemnity shall not apply to) any willful misconduct, negligence or breach of this Contract by City or its officers, officials, agents, and employees. The foregoing indemnity shall survive termination of this Contract.

b. Any and all claims under workers’ compensation acts and other employee benefit acts with respect to Contractor’s employees or Contractor’s subcontractor’s employees arising out of Contractor’s Work under this Contract, including any and all claims under any law pertaining to Contractor’s status as an independent contractor.

ARTICLE 12
Insurance

a. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder and the results of that Work by Contractor, its agents, representatives, employees or subcontractors.

b. Contractor shall maintain the following minimum amount of insurance: the greater of either the limits set forth in (1) through (4), below; or all of the insurance coverage and/or limits carried by or available to Contractor.

(1) General Liability $2,000,000 per occurrence for bodily injury, personal injury and property damage. If
Commercial General Liability insurance
or other form with a general aggregate
limit is used, either the general aggregate
limit shall apply separately to this
project/location or the general aggregate
limit shall be twice the required
occurrence limit.

(2) Automobile Liability $1,000,000 per accident for bodily injury and property damage.
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8 (3) Workers’ Compensation as required by the State of California.

(4) Employer’s Liability $1,000,000 per accident for bodily injury or disease.

c. Any insurance proceeds in excess of or broader than the minimum required coverage and/or minimum required limits which are applicable to a given loss shall be available to City. No representation is made that the minimum insurance requirements of this Contract are sufficient to cover the obligations of Contractor under this Contract.

d. Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, either: the insurer shall reduce or eliminate such deductibles or self - insured retentions with respect to City, its officers, officials, agents and employees; or Contractor shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

e. Each policy of general liability and automotive liability insurance shall contain, or be endorsed to contain, the following provisions:

(1) City, its officers, officials, agents, and employees are declared to be additional insureds under the terms of the policy, with respect to liability arising out of automobiles owned, leased, hired or borrowed by or o n behalf of Contractor (any auto), and with respect to liability arising out of Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such Work or operations. A policy endorsement to that effect shall be provided to City along with the certificate of insurance. In lieu of an endorsement, City will accept a copy of the policy(ies) which evidences that City is an additional insured as a contracting party. The minimum coverage required by Subsection 12.b, above, shall apply to City as an additional insured.

(2) For any claims related to this Contract, Contractor’s insurance coverage shall be primary insurance with respect to City, its officers, officials, agents and employees. Any insurance or self-insurance maintained by City, its officers, officials, agents and employees shall be excess of Contractor’s insurance and shall not contribute with it.

(3) Coverage shall not be canceled, except after thirty (30) days’ prior written not ice has been provided to City.

f. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Article 12. The endorsements shall be on forms acceptable to City. All certificates and endorsem ents are to be received and approved by City before the Work commences. However, failure to do so shall not operate as a waiver of these insurance requirements. City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.

g. All insurance procured and maintained by Contractor shall be issued by insurers admitted to conduct the pertinent line of insurance business in California and having a rating of Grade A or better and Class VII or better by the latest edition of Best Key Rating Guide. 122
9 h. Contractor shall immediately notify City if any required insurance lapses or is otherwise modified and cease performance of this Contract unless otherwise directed by City. In such a case, City may procure insurance or self-insure the risk and charge Contractor for such costs and any and all damages resulting therefrom by way of set-off from any sums owed Contractor.

i. Contractor agrees that in the event of loss due to any of the perils for which i t has agreed to provide insurance, Contractor shall look solely to its insurance for recovery. Contractor hereby grants to City, on behalf of any insurer providing insurance to either Contractor or City with respect to the services of Contractor herein, a waiver of any right to subrogation which any such insurer may acquire against City by virtue of the payment of any loss under such insurance.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all Work performed by Contractor, its employees, agents and subcontractors. Contractor shall obtain any other endorsement that may be necessary to effect this waiver of subrogation.

j. Contractor shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein.

ARTICLE 13
Termination

City, acting through its City Manager or his /her designee, reserves the right to terminate this Contract for any reason by giving five (5) days’ written notice of intent to terminate to Contractor. Upon receipt of notice, Contractor shall immediately cease work, unless the notice provides otherwise. Should City terminate this Contract, City shall pay Contractor for services satisfactorily provided and all allowable reimbursements incurred to the date of termination in compliance with this Contract, unless such termination shall be for cause, in which event City may withhold any disputed compensation. City shall not be liable for any claim of lost profits.

ARTICLE 14
Maintenance and Inspection of Records

In accordance with generally accepted accounting principles, Contractor and its subcontractors shall maintain reasonably full and complete books, documents, papers, accounting records and other information (collectively, the “records”) pertaining to the costs of and completion of services performed under this Contract. During the term of this Contract and for a period of three (3) years after termination or completion of this Contract, City shall have the right to inspect and/or audit Contractor's records pertaining to the performance of this Contract at Contractor's office. Contractor shall make available all such records for inspection or audit at its offices during normal business hours and upon three (3) days’ notice from City, and copies thereof shall be furnished if requested.

ARTICLE 15
Compliance with Laws

a. Contractor shall be knowledgeable of and comply with all local, state and federal laws pertaining to the subject matter hereof or in any way regulating the activities undertaken by Contractor or any subcontractor hereunder.
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10 b. Contractor represents and warrants that it:

(1) Has complied and shall at all times during the term of this Contract comply, in all respects, with all immigration laws, regulations, statutes, rules, codes, and orders, including, without limitation, the Immigration Reform and Control Act of 1986 (IRCA); and

(2) Has not and will not knowingly employ any individual to perform services under this Contract who is ineligible to work in the United States or under the terms of this Contract; and

(3) Has properly maintained, and shall at all times during the term of this Contract properly maintain, all related employment documentation records including, without limitation, the completion and maintenance of the Form I-9 for each of Contractor’s employees; and

(4) Has responded, and shall at all times during the term of this Contract respond, in a timely fashion to any government inspection requests relating to immigration law compliance and/or Form I -9 compliance and/or worksite enforcement by the Depart ment of Homeland Security, the Department of Labor, or the Social Security Administration.

c. Contractor shall require all subcontractors and/or subconsultants to make the same representations and warranties required by this Article 15 when hired to per form services under this Contract.

d. Contractor shall, upon request of City, provide a list of all employees working under this Contract and shall provide, to the reasonable satisfaction of City, verification that all such employees are eligible to work in the United States. All costs associated with such verification shall be borne by Contractor. Once such request has been made, Contractor may not change employees working under this Contract without written notice to City, accompanied by the verification required herein for such employees. Contractor shall require all subcontractors and/or sub-consultants to make the same verification when hired to perform services under this Contract.

e. If Contractor, or a subcontractor or subconsultant, knowingly employs an employee providing Work under this Contract who is not authorized to work in the United States, and/or fails to follow federal laws to determine the status of such employee , such shall constitute a material breach of this Contract and may be cause for immediate termination of this Contract by City.

f. Contractor shall indemnify and hold City, its officials and employees harmless for, of and from any loss, including but not limite d to fines, penalties and corrective measures, City may sustain by reason of Contractor’s failure to comply with said laws, rules and regulations in connection with the performance of this Contract.

ARTICLE 16
Governing Law and Venue

This Contract shall be construed in accordance with and governed by the laws of the State of California and Contractor shall submit to the juri sdiction of California courts. Venue for any dispute arising under this Contract shall be in Orange County, California. 124
11 ARTICLE 17
Integration and Amendment

a. This Contract constitutes the entire agreement of the parties. No other agreement, oral or written, pertaining to the Work to be performed under this Contract shall be of any force or effect unless it is in writing and signed by both parties. Any Work performed which is inconsistent with or in violation of the provisions of this Contract shall not be compensated.

b. Amendments to this Contract must be in writing and signed by both parties. The City Manager is authorized to execute amendments to this Contract up to the amounts specified in Chapter 3.08 of the Orange Municipal Code.

ARTICLE 18
Notice

Except as otherwise p rovided herein, all notices required under this Contract shall be in writing and delivered personally, by e-mail, or by first class mail, postage prepaid, to each party at the address listed below. Either party may change the notice address by notifying the other party in writing. Notices shall be deemed received upon receipt of same or within three (3) days of deposit in the U.S. Mail, whichever is earlier. Notices sent by e-mail shall be deemed received on the date of the e-mail transmission.

“CONTRACTOR” “CITY”

CT&T Concrete Paving, Inc. City of Orange
1054 E. Third Street 300 E. Chapman Avenue
Pomona, CA 91766 Orange, CA 92866-1591

Attn: Jose Carvajal Attn: Randy Nguyen

Telephone: 909-629-8000 Telephone: 714-744-5531
E-Mail: [email protected] E-Mail: [email protected]

ARTICLE 19
Claim Resolution

City and Contractor agree that the claim resolution process applicable to any claim by Contractor in connection with the Work provided herein shall be subject to the procedures set forth in California Public Contract Code Section 9204, attached hereto as Attachment No. 2, and incorporated herein by this reference.

ARTICLE 20
Counterparts

This Contract may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures. 125
12 “CITY”

CONTRACT, BONDS AND INSURANCE
APPROVED BY:

Mary E. Binning
Senior Assistant City Attorney

CITY OF ORANGE, a municipal corporation

By:

Mark A. Murphy
Mayor of the City of Orange

ATTEST:

Pamela Coleman, City Clerk

“CONTRACTOR”

CT&T CONCRETE PAVING, INC.,
a California corporation

[Note: Signature of Chairman of the By:

Board, President or Vice President is Printed Name:
required] Title:

[Note: Signature of Secretary, Assistant By:

Secretary, Chief Financial Officer or Printed Name:

Assistant Treasurer is also required] Title:

126

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ATTACHMENT NO. 1

CALIFORNIA LABOR CODE
SECTIONS 1725.5, 1771, 1771.1, 1771.4, 1775, 1776, 1777.5, 1813 and 1815

Section 1725.5. Registration of contractors; mandatory registration; qualifications and application; fees; exempt contractors
A contractor shall be registered pursuant to this section to be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any public work contract that is subject to the requirements of this chapter. For the purposes of this section, “contractor” includes a subcontractor as defined by Section 1722.1. (a) To qualify for registration under this section, a contractor shall do all of the following:
(1)(A) Register with the Department of Industrial Relations in the manner prescribed by the department and pay an initial nonrefundable application fee o f four hundred dollars ($400) to qualify for registration under this section and an annual renewal fee on or before July 1 of each year thereafter. The annual renewal fee shall be in a uniform amount set by the Director of Industrial Relations, and the initial registration and renewal fees may be adjusted no more than annually by the director to support the costs specified in Section 1771.3. (B) Beginning June 1, 2019, a contractor may register or renew according to this subdivision in annual increments up to three years from the date of registration. Contractors who wish to do so will be required to prepay the applicable nonrefundable application or renewal fees to qualify for the number of years for which they wish to preregister.
(2) Provide evidence, disclosures, or releases as are necessary to establish all of the following:
(A) Workers' compensation coverage that meets the requirements of Division 4 (commencing with Section 3200) and includes sufficient coverage for any worker whom the contractor employs to perform work that is subject to prevailing wage requirements other than a contractor who is separately registered under this section.

Coverage may be evidenced by a current and valid certificate of workers' compensation insurance or certification of self-insurance required under Section 7125 of the Business and Professions Code. (B) If applicable, the contractor is licensed in accordance with Chapter 9 (commencing with Section 7000) of the Business and Professions Code.
(C) The contractor does not have any delinquent liability to an employee or the state for any assessment of back wages or related damages, interest, fines, or penalties pursuant to any final judgment, order, or determination by a court or any federal, state, or local administrative agency, including a confirmed arbitration award. However, for purposes of this paragraph, the contractor shall not be disqualified for any judgment, order, or determination that is under appeal, provided that the contractor has secured the payment of any amount eventually found due through a bond or other appropriate means. (D) The contractor is not currently debarred under Section 1777.1 or under any other federal or state law providing for the debarment of contractors from public works. (E) The contractor has not bid on a public works contract, been listed in a bid proposal, or engaged in the performance of a contract for public works without being lawfully registered in accordance with this section, within the preceding 12 months or since the effective date of the requirements set forth in subdivision (e), whichever is earlier. If a contractor is found to be in violation of the requirements of this paragraph, the period of disqualification shall be waived if both of the following are true:
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(i) The contractor has not previously been found to be in violation of the requirements of this paragraph within the preceding 12 months.
(ii) The contractor pays an additional nonrefundable penalty registration fee of two thousand dollars ($2,000). (b) Fees received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (c) A contractor who fails to pay the renewal fee required under paragraph (1) of subdivision (a) on or before the expiration of any prior period of registration shall be prohibited from bidding on or engaging in the performance of any contract for public work until once again registered pursuant to this section. If the failure to pay the renewal fee was inadvertent, the contractor may renew its registration retroactively by paying an additional nonrefundable penalty renewal fee equal to the amount of the renewal fee within 90 days of the due date of the renewal fee.
(d) If, after a body awarding a contract accepts the contractor's bid or awards the contract, the work covered by the bid or contract is determined to be a public work to which Section 1771 applies, either as the result of a determination by the director pursuant to Section 1773.5 or a court decision, the requirements of this section shall not apply, subject to the following requirements:
(1) The body that awarded the contract failed, in the bid specification or in the contract documents, to identify as a public work that portion of the work that the determination or decision subsequently classifies as a public work.
(2) Within 20 days following service of notice on the awarding body of a determination by the Director of Industrial Relations pursuant to Section 1773.5 or a decision by a court that the contract was for public work as defined in this chapter, the contractor and any subcontractors are registered under this section or are replaced by a contractor or subcontractors who are registered under this section. (3) The requirements of this section shall apply prospectively only to any subsequent bid, bid proposal, contract, or work performed after the awarding body is served with notice of the determination or decision referred to in paragraph (2).
(e) The requirements of this section shall apply to any bid proposal submitted on or after March 1, 2015, to any contract for public work, as defined in this chapter, executed on or after April 1, 2015, and to any work performed under a contract for public work on or after January 1, 2018, regardless of when the contract for public work was executed.
(f) This section does not apply to work performed on a public works project of twenty -five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771. Payment of general prevailing rate

Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less tha n the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works.

This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work. 128

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Section 1771.1 . Registration as a contractor or subcontractor required prior to bid submission; exceptions; violations; penalties
(a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code , or engage in the performance of any contract for public work, as defined in this ch apter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code , provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a) shall be included in all bid invi tations and public works contracts, and a bid shall not be accepted nor any contract or subcontract entered into without proof of the contractor or subcontractor's current registration to perform public work pursuant to Section 1725.5. (c) An inadvertent error in listing a subcontractor who is not registered pursuant to Section 1725.5 in a bid proposal shall not be grounds for filing a bid protest or grounds for considering the bid nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening. (2) Within 24 hours after the bid opening, the subcontractor is registered and has paid the penalty registration fee specified in subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (3) The subcontractor is replaced by another registered subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public work as required by subdivision (a) shall be grounds under Section 4107 of the Public Contract Code for the contractor, with the consent of the awarding authority, to substitute a subcontractor who is registered to perform public work pursuant to Section 1725.5 in place of the unregistered subcontractor.
(e) The department shall maintain on its Internet Web site a list of contractors who are currently registered to perform public work pursuant to Section 1725.5.
(f) A contract entered into with any contractor or subcontractor in violation of subdivision (a) shall be subject to cancellation, provided that a contract for public work shall not be unlawful, void, or voidable solely due to the failure of the awarding body, contractor, or any subcontractor to comply with the requirements of Section 1725.5 or this section.
(g) If the Labor Commissioner or his or her designee determines that a contractor or subcontractor engaged in the performance of any public work contract without having been registered in accordance with this section, the contractor or subcontractor shall forfeit, as a civil penalty to the state, one hundred dollars ($100) for each day of work performed in violation of the registration requirement, not to exceed an aggregate penalty of eight thousand dollars ($8,000) in addition to any penalty registration fee assessed pursuant to clause (ii) of subparagraph (E) of paragraph (2) of subdivision (a) of Section 1725.5. (h)(1) In addition to, or in lieu of, any other penalty or sanction authorized pursuant to this chapter, a higher tiered public works contractor or subcontracto r who is found to have entered into a subcontract with an unregistered lower tier subcontractor to perform any public work in violation of the requirements of Section 1725.5 or this section shall be subject to forfeiture, as a civil penalty to the state, of one hundred dollars ($100) 129

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for each day the unregistered lower tier subcontractor performs work in violation of the registration requirement, not to exceed an aggregate penalty of ten thousand dollars ($10,000). (2) The Labor Commissioner shall use the same s tandards specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 1775 when determining the severity of the violation and what penalty to assess, and may waive the penalty for a first time violation that was unintentio nal and did not hinder the Labor Commissioner's ability to monitor and enforce compliance with the requirements of this chapter. (3) A higher tiered public works contractor or subcontractor shall not be liable for penalties assessed pursuant to paragraph (1) if the lower tier subcontractor's performance is in violation of the requirements of Section 1725.5 due to the revocation of a previously approved registration. (4) A subcontractor shall not be liable for any penalties assessed against a higher tiered public works contractor or subcontractor pursuant to paragraph (1). A higher tiered public work s contractor or subcontractor may not require a lower tiered subcontractor to indemnify or otherwise be liable for any penalties pursuant to paragraph (1).
(i) The Labor Commissioner or his or her designee shall issue a civil wage and penalty assessment, i n accordance with the provisions of Section 1741, upon determination of penalties pursuant to subdivision (g) and subparagraph (B) of paragraph (1) of subdivision (h). Review of a civil wage and penalty assessment issued under this subdivision may be requested i n accordance with the provisions of Section 1742 . The regulations of the Director of Industrial Relations, which govern proceedings for review of civil wage and penalty assessments and the withholding of contract payments under Article 1 (commencing with Section 1720) and Article 2 (commencing with Section 1770), shall apply. (j)(1) Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of the requirements of Section 1725.5 or this section, the Labor Commissioner shall issue and serve a stop order prohibiting the use of the unregistered contractor or the unregistered subcontractor on all public works until the unregistered contractor or unregistered subcontractor is registered. The stop order shall not apply to work by registered contractors or subcontractors on the public work.
(2) A stop order may be personally served upon the contractor or subcontractor by either of the following methods:
(A) Manual delivery of the order to the contractor or subcontractor personally. (B) Leaving signed copies of the order with the person who is apparently in charge at the site of the public work and by thereafter mailing copies of the order by first class mail, postage prepaid to the con tractor or subcontractor at one of the following:
(i) The address of the contractor or subcontractor on file with either the Secretary of State or the Contractors' State License Board.
(ii) If the contractor or subcontractor has no address on file with the Secretary of State or the Contr actors' State License Board, the address of the site of the public work. (3) The stop order shall be effective immediately upon service and shall be subject to appeal by the party contracting with the unregistered contractor or subcontractor, by the unregistered contractor or subcontractor, or both. The appeal, hearing, and any further review of the hearing decision shall be governed by the procedures, time limits, and other requirements specified in subdivision (a) of Section 238.1. 130

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(4) Any employee of an unregistered contractor or subcontractor who is affected by a work stoppage ordered by the commissioner pursuant to this subdivision shall be paid at his or her regular hourly prevailing wage rate by that employer for any hours the employee would have worked but for the work stoppage, not to exceed 10 days.
(k) Failure of a contractor or subcontractor, owner, director, officer, or managing agent of the contractor or subcontractor to observe a stop order issued and served upon him or her pursuant to subdivision (j) is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both.
(l) This section shall apply to any bid proposal submitted on or afte r March 1, 2015, and any contract for public work entered into on or after April 1, 2015. This section shall also apply to the performance of any public work, as defined in this chapter, on or after January 1, 2018, regardless of when the contract for public work was entered.
(m) Penalties received pursuant to this section shall be deposited in the State Public Works Enforcement Fund established by Section 1771.3 and shall be used only for the purposes specified in that section. (n) This section shall not apply to work performed on a public works project of twenty -five thousand dollars ($25,000) or less when the project is for construction, alteration, demolition, installation, or repair work or to work performed on a public works project of fifteen thousand dollars ($15,000) or less when the project is for maintenance work.

Section 1771.4. Additional requirements when bidding and awarding public works contracts

(a) All of the following are applicable to all public works projects that are otherwise subject to the requirements of this chapter:
(1) The call for bids and contract documents shall specify that the project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. (2) The awarding body shall post or require the prime contractor to post job site notices, as prescribed by regulation.
(3) Each contractor and subcontractor shall furnish the records specified in Section 1776 directly to the Labor Commissioner, in the following manner:
(A) At least monthly or more frequently if specified in the contract with the awarding body. (B) In a format prescribed by the Labor Commissioner.
(4) If the contractor or subcontractor is not registered pursuant to Section 1725.5 and is performing work on a project for which registration is not required because of subdivision (f) of Section 1725.5, the unregistered contractor or subcontractor is not required to furnish the records specified in Section 1776 directly to the Labor Commissioner but shall retain the records specified in Section 1776 for at least three years after completion of the work.
(5) The department shall undertake those activities it deems necessary to monitor and enforce compliance with prevailing wage requirements.
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(b) The Labor Commissioner may exempt a public works project from compliance wi th all or part of the requirements of subdivision (a) if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance program, as defined in Section 1771.5, on all public works projects under its authority, except those deemed exempt pursuant to subdivision (a) of Section 1771.5, continuously since December 31, 2011.
(2) The awarding body has entered into a collective bargaining agreement that binds all contractors performing work on the project and that includes a mechanism for resolving disputes about the payment of wages. (c) The requirements of paragraph (1) of subdivision (a) shall only apply to contracts for public works projects awarded on or after January 1, 2015.
(d) The requirements of paragraph (3) of subdivision (a) shall apply to all contracts for public work, whether new or ongoing, on or after January 1, 2016.

Section 1775. Penalties for violations

(a)(1) The contractor and any subcontractor under the contractor shall, as a penalty to the sta te or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the director for the work or craft in which the worker is employed for any public work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor.
(2)(A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following:
(i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor.
(ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations.
(B)(i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and volun tarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the contrac tor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor 132

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or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section.
(D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion.
(E) The difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate shall be paid to each worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure o f the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements:
(1) The contract executed between the contractor and the subcontractor for the perform ance of work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815.
(2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for work performed on the public works project. (4) Prior to making final payment to the subcontractor for work performe d on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failu re of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages.

Section 1776. Payroll records; retention; inspection; redacted information; agencies entitled to receive nonredacted copies of certified records; noncompliance penalties; rules

(a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
(1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771 , 1811, and 1815 for any work performed by his or her employees on the public works project. 133

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(b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis:
(1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records a t the principal office of the contractor.
(c) Unless required to be furnished directly to the Labor Commissioner in accordance with paragraph (3) of subdivision (a) of Section 1771.4, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division.

The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (e) Except as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awar ding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft -Hartley trust fund ( 29 U.S.C. Sec. 186(c)(5) ) that requests the records for the purpos es of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor- management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social secu rity number.
(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies in vestigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. 134

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(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.
(g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
(h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or a warded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code ) and the Information Practices Act of 1977 (Title 1.8 (com mencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section.

Section 1777.5. Employment of registered apprentices; wages; standards; number; apprenticeable craft or trade; exemptions; contributions; compliance program

(a)(1) This chapter does not prevent the employment upon public works of properly registered apprentices who are active participants in an approved apprenticeship program. (2) For purposes of this chapter, “apprenticeship program” means a program under the jurisdiction of the California Apprenticeship Council established pursuant to Section 3070. (b)(1) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered.
(2) Unless otherwise provided by a collective bargaining agreement, when a contractor requests the dispatch of an apprentice pursuant to this section to perform work on a public works project and requires the apprentice to fill out an application or undergo testing, training, an examin ation, or other preemployment process as a condition of employment, the apprentice shall be paid for the time spent on the required preemployment activity, including travel time to and from the required activity, if any, at the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered. Unless otherwise provided by a collective bargaining agreement, a contractor is not required to compensate an apprentice for the time spent on preemployment activities if the apprentice is required to take a preemployment drug or alcohol test and he or she fails to pass that test.
(c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprentice ship Standards and who are parties to written 135

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apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employment and training of each apprentice shall be in accordance with either of the following:
(1) The apprenticeship standards and apprentice agreements under which he or she is training. (2) The rules and regulations of the California Apprenticeship Council. (d) If the contractor to whom the contract is awar ded by the state or any political subdivision, in performing any of the work under the contract, employs workers in any apprenticeable craft or trade, the contractor shall employ apprentices in at least the ratio set forth in this section and may apply to any apprenticeship program in the craft or trade that can provide apprentices to the site of the public work for a certificate approving the contractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected. However, the decision of the apprenticeship program to approve or deny a certificate shall be subject to review by the Administrator of Apprenticeship. The apprenticeship program or programs, upon approving the contractor, shall arrange for the dispatch of apprentices to the contractor. A contractor covered by an apprenticeship program's standards shall not be required to submit any additional application in order to include additional public works contracts under that program. “Apprenticeable craft or trade,” as used in this section, means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council. As used in this section, “contractor” includes any subcontractor under a contractor who performs any public works not excluded by subdivision (o).
(e) Before commencing work on a contract for public works, every contractor shall submit contract award information to an applicable apprenticeship program that can supply apprentices to the site of the public work.

The information submitted shall include an estimate of journeyman hours to be performed under the contract, the number of apprentices proposed to be employed, and the approximate dates the apprentic es would be employed. A copy of this information shall also be submitted to the awarding body, if requested by the awarding body. Within 60 days after concluding work on the contract, each contractor and subcontractor shall submit to the awarding body, if requested, and to the apprenticeship program a verified statement of the journeyman and apprentice hours performed on the contract. The information under this subdivision shall be public. The apprenticeship programs shall retain this information for 12 months. (f) The apprenticeship program supplying apprentices to the area of the site of the public work shall ensure equal employment and affirmative action in apprenticeship for women and minorities. (g) The ratio of work performed by apprentices to jour neymen employed in a particular craft or trade on the public work may be no higher than the ratio stipulated in the apprenticeship standards under which the apprenticeship program operates if the contractor agrees to be bound by those standards. However, except as otherwise provided in this section, in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work.
(h) This ratio of apprentice work to journeyman work shall apply during any day or portion of a day w hen any journeyman is employed at the jobsite and shall be computed on the basis of the hours worked during the day by journeymen so employed. Any work performed by a journeyman in excess of eight hours per day or 40 hours per week shall not be used to ca lculate the ratio. The contractor shall employ apprentices for the number of hours computed as above before the end of the contract or, in the case of a subcontractor, before the end of the subcontract. However, the contractor shall endeavor, to the greatest extent possible, to employ apprentices during the same time period that the journeymen in the same craft or trade are employed at the jobsite. When an hourly apprenticeship ratio is not feasible for a particular craft or trade, the Administrator 136

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of Apprenticeship, upon application of an apprenticeship program, may order a minimum ratio of not less than one apprentice for each five journeymen in a craft or trade classification. (i) A contractor covered by this section who has agreed to be covered by an apprenticeship program's standards upon the issuance of the approval certificate, or who has been previously approved for an apprenticeship program in the craft or trade, shall employ the number of apprentices or the ratio of apprentices to journeymen stipulated in the applicable apprenticeship standards, but in no event less than the 1 -to-5 ratio required by subdivision (g).
(j) Upon proper showing by a contractor that he or she employs apprentices in a particular craft or trade in the state on all of his or her contracts on an annual average of not less than one hour of apprentice work for every five hours of labor performed by journeymen, the Administrator of Apprenticeship may grant a certificate exempting the contractor from the 1-to-5 hourly ratio, as set forth in this section for that craft or trade. (k) An apprenticeship program has the discretion to grant to a participating contractor or contractor association a certificate, which shall be subject to the approval of the Administrator of Apprenticeship, exempting the contractor from the 1-to-5 ratio set forth in this section when it finds that any one of the following conditions is met:
(1) Unemployment for the previous three-month period in the area exceeds an average of 15 percent. (2) The number of apprentices in training in the area exceeds a ratio of 1 to 5. (3) There is a showing that the apprenticeable craft or trade is replacing at least one-thirtieth of its journeymen annually through apprenticeship training, either on a statewide basis or on a local basis. (4) Assignment of an apprentice to any work performed under a public works contract would create a condition that would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large, or th e specific task to which the apprentice is to be assigned is of a nature that training cannot be provided by a journeyman.
(l) If an exemption is granted pursuant to subdivision (k) to an organization that represents contractors in a specific trade from the 1-to-5 ratio on a local or statewide basis, the member contractors shall not be required to submit individual applications for approval to local joint apprenticeship committees, if they are already covered by the local apprenticeship standards.
(m)(1) A contractor to whom a contract is awarded, who, in performing any of the work under the contract, employs journeymen or apprentices in any apprenticeable craft or trade shall contribute to the California Apprenticeship Council the same amount that the dir ector determines is the prevailing amount of apprenticeship training contributions in the area of the public works site. A contractor may take as a credit for payments to the council any amounts paid by the contractor to an approved apprenticeship program that can supply apprentices to the site of the public works project. The contractor may add the amount of the contributions in computing his or her bid for the contract. (2)(A) At the conclusion of the 2002 -03 fiscal year and each fiscal year thereafter, the California Apprenticeship Council shall distribute training contributions received by the council under this subdivision, less the expenses of the Department of Industrial Relations for administering this subdivision, by making grants to approved apprenticeship programs for the purpose of training apprentices. The grant funds shall be distributed as follows:
137

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(i) If there is an approved multiemployer apprenticeship program serving the same craft or trade and geographic area for which the training contr ibutions were made to the council, a grant to that program shall be made.
(ii) If there are two or more approved multiemployer apprenticeship programs serving the same craft or trade and county for which the training contributions were made to the council, the grant shall be divided among those programs based on the number of apprentices from that county registered in each program. (iii) All training contributions not distributed under clauses (i) and (ii) shall be used to defray the future expenses of the Department of Industrial Relations for the administration and enforcement of apprenticeship and preapprenticeship standards and requirements under this code. (B) An apprenticeship program shall only be eligible to receive grant funds pursuant to this subdivision if the apprenticeship program agrees, prior to the receipt of any grant funds, to keep adequate records that document the expenditure of grant funds and to make all records available to the Department of Industrial Relations so that the Department o f Industrial Relations is able to verify that grant funds were used s olely for training apprentices. For purposes of this subparagraph, adequate records include, but are not limited to, invoices, receipts, and canceled checks that account for the expenditure of grant funds. This subparagraph shall not be deemed to require an apprenticeship program to provide the Department of Industrial Relations with more documentation than is necessary to verify the appropriate expenditure of grant funds made pursuant t o this subdivision.
(C) The Department of Industrial Relations shall verify that grants made pursuant to this subdivision are used solely to fund training apprentices. If an apprenticeship program is unable to demonstrate how grant funds are expended or if an apprenticeship program is found to be using grant funds for purposes other than training apprentices, then the apprenticeship program shall not be eligible to receive any future grant pursuant to this subdivision and the Department of Industrial Relat ions may initiate the process to rescind the registration of the apprenticeship program.
(3) All training contributions received pursuant to this subdivision shall be deposited in the Apprenticeship Training Contribution Fund, which is hereby created in th e State Treasury. Upon appropriation by the Legislature, all moneys in the Apprenticeship Training Contribution Fund shall be used for the purpose of carrying out this subdivision and to pay the expenses of the Department of Industrial Relations. (n) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. The stipulations shall fix the responsibility of compliance with this section for all apprenticeable occupations with the prime contractor.
(o) This section does not apply to contracts of general contractors or to contracts of specialty contractors not bidding for work through a general or prime contractor when the contracts of general contractors or those specialty contractors involve less than thirty thousand dollars ($30,000). (p) An awarding body that implements an approved labor compliance program in accordance with subdivision (b) of Section 1771.5 may, with the approval of the director, assist in the enforcement of this s ection under the terms and conditions prescribed by the director.

Section 1813. Forfeiture for violations; contract stipulation; report of violations

The contractor or subcontractor shall, as a penalty to the state or political subdivision on whose beha lf the contract is made or awarded, forfeit twenty- five dollars ($25) for each worker employed in the execution of 138

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the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work mo re than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of this article. In awarding any contract for public work, the awarding body shall cause to be inserted in the contract a stipulation to this effe ct. The awarding body shall take cognizance of all violations of this article committed in the course of the execution of the contract, and shall report them to the Division of Labor Standards Enforcement.

Section 1815. Overtime

Notwithstanding the prov isions of Sections 1810 to 1814, inclusive, of this code, and notwithstanding any stipulation inserted in any contract pursuant to the requirements of said sections, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of 8 h ours per day at not less than 1 ½ times the basic rate of pay.
139

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ATTACHMENT NO. 2

CALIFORNIA PUBLIC CONTRACT CODE SECTION 9204

Section 9204. Legislative findings and declarations regarding timely and complete payment of contractors for public works projects; claims process (Eff: January 1, 2017)

(a) The Legislature finds and declares that it is in the best interests of the state and its citizens to ensure that all construction business performed on a public works project in the state that is complete and not in dispute is paid in full and in a timely manner.
(b) Notwithstanding any other law, including, but not limited to, Article 7.1 (commencing with Section 10240) of Chapter 1 of Part 2, Chapter 10 (commencing with Section 19100) of Part 2, and Article 1.5 (commencing with Section 20104) of Chapter 1 of Part 3, this section shall apply to any claim by a contractor in connection with a public works project.
(c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project.
(3)(A) “Public entity” means, without limitation, except as provided in subparagraph (B), a state agency, department, office, division, bureau, board, or commission, the California State University, the University of California, a city , including a charter city, county, including a charter county, city and county, including a charter city and county, district, special district, public authority, political subdivision, public corporation, or nonprofit transit corporation wholly owned by a public agency and formed to carry out the purposes of the public agency.
(B) “Public entity” shall not include the following:
(i) The Department of Water Resources as to any project under the jurisdiction of that department. (ii) The Department of Transportation as to any project under the jurisdiction of that department. (iii) The Department of Parks and Recreation as to any project under the jurisdiction of that department. (iv) The Department of Corrections and Rehabilitation with respect to any project under its jurisdiction pursuant to Chapter 11 (commencing with Section 7000) of Title 7 of Part 3 of the Penal Code. 140

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(v) The Military Department as to any project under the jurisdiction of that department. (vi) The Department of General Services as to all other projects. (vii) The High-Speed Rail Authority.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor.
(d)(1)(A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the m utually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2)(A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issu ed pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, ret urn receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the cl aim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the ne utral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section. 141

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(C) For purposes of this section, mediation includes any nonbinding process, including, but not limite d to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
(E) This s ection does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public ent ity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum. (5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on their own behalf or on behalf of a lower tier subcontractor, tha t the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable docum entation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. (e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commenc ement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractua l provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. (g) This section applies to contracts entered into on or after January 1, 2017. (h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations. (i) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date. 142
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Agenda Item
City Council
Item #: 3.13. 1/11/2022 File #: 22-0010
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Final Acceptance of Bid No. 21-22.03, Chapman Avenue Alley Improvement; and authorization to file Notice of Completion.

2. SUMMARY
The work in general consisted of the conversion of the existing alley north of Chapman Avenue, from Lemon Street to Cypress Street, into a pedestrian-only corridor. This included the construction of a new trash enclosure to relocate existing trash pickup services of adjacent businesses, installation of removable bollards on each end of the alley to prevent vehicle access, and addition of planter areas to blend with existing landscaping.

The City of Orange entered into a contract with Gentry General Engineering, Inc. The work was substantially completed to the satisfaction of the Public Works Department. The brick veneer to match the exterior surface of the parking structure was subject to an extensive material lead time and is set for arrival in April 2022, Contractor will return to complete the brick veneer installation at that time.

3. RECOMMENDED ACTION
Accept Chapman Avenue Alley Improvement (SP-4164) as substantially complete, and authorize staff to file Notice of Completion with the County Recorder.

4. ATTACHMENTS
· Notice of Completion and Acceptance
City of Orange Printed on 1/5/2022Page 1 of 1
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Agenda Item
City Council
Item #: 3.13. 1/11/2022 File #: 22-0010
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Final Acceptance of Bid No. 21-22.03, Chapman Avenue Alley Improvement; and authorization to file Notice of Completion.

3. RECOMMENDED ACTION
Accept Chapman Avenue Alley Improvement (SP-4164) as substantially complete, and authorize staff to file Notice of Completion with the County Recorder.

4. ATTACHMENTS
· Notice of Completion and Acceptance
City of Orange Printed on 1/5/2022Page 1 of 1
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156

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Orange
300 East Chapman Avenue
Orange, California 92866
Attention: City Clerk
[Space above this line for Recorder’s use only.]

THIS DOCUMENT IS RECORDED AT THE

REQUEST AND FOR THE BENEFIT OF THE CITY

OF ORANGE AND IS EXEMPT FROM THE

PAYMENT OF A RECORDING FEE PURSUANT
TO GOVERNMENT CODE SECTIONS 6103 AND
27383.

NOTICE OF COMPLETION AND ACCEPTANCE

NOTICE IS HEREBY GIVEN that work on that certain public work and improvements known as “Chapman Avenue Alley Improvement Project (Bid No. 21-22.03; SP-4164)” (herein referred to as the “Project”), for the owner, the City of Orange, a municipal corporation (herein referred to as the “City”), whose address is 300 E. Chapman Avenue, Orange, CA 92866, was completed and accepted by the City Council of the City of Orange on January 11, 2022 at a regular meeting of its members, at which a quorum was present and acting throughout. The Project is 319 W Chapman Avenue in the City of Orange, State of California. The contractor who performed (or caused to be performed) said public work and improvements was Gentry General Engineering, Inc., a California corporation, with its principal office at 9277 Archibald Avenue, Rancho Cucamonga, State of California.

The name of the surety on the Labor and Material Bond for the Project is The Ohio Casualty Insurance Company, New Hampshire (Bond No. 024255071) in the amount of $121,100.00

DATED as of the 11th day of January 2022. CITY OF ORANGE, a municipal corporation

By:

Mark A. Murphy, Mayor, City of Orange

STATE OF CALIFORNIA

COUNTY OF ORANGE

I, Mark A. Murphy, Mayor of the City of Orange, state that I have read the foregoing document know the contents thereof, and that the facts therein stated are true of my own knowledge. I hereby declare under penalty of perjury that the foregoing is true and correct.

DATED as of the 11th day of January 2022 at Orange, California.

Mark A. Murphy, Mayor, City of Orange

I, Pamela Coleman, City Clerk for the City of Orange, hereby attest that Mark A. Murphy is known to me to be the Mayor of the City of Orange and known to me to be the person who executed the within instrument on behalf of said municipal corporation, and acknowledged to me that the City of Orange executed the same.

Pamela Coleman, City Clerk, City of Orange
157
Agenda Item
City Council
Item #: 3.14. 1/11/2022 File #: 21-0698
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code (Zoning) to update noticing and posting requirements.

Ordinance No. 17-21.

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on December 14, 2021.

The Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, Murphy
NOES: None
ABSENT: None

3. RECOMMENDED ACTION
Adopt Ordinance No. 17-21.

4. ATTACHMENTS
· Ordinance No. 17-21
City of Orange Printed on 1/5/2022Page 1 of 1
powered by Legistar™
158
Agenda Item
City Council
Item #: 3.14. 1/11/2022 File #: 21-0698
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code (Zoning) to update noticing and posting requirements.

Ordinance No. 17-21.

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on December 14, 2021.

The Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, Murphy
NOES: None
ABSENT: None

3. RECOMMENDED ACTION
Adopt Ordinance No. 17-21.

4. ATTACHMENTS
· Ordinance No. 17-21
City of Orange Printed on 1/5/2022Page 1 of 1
powered by Legistar™
159
ORDINANCE NO. 17-21

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING TITLE 17 OF THE

ORANGE MUNICIPAL CODE (ZONING) TO UPDATE

NOTICING AND POSTING REQUIREMENTS
WHEREAS, the City Council of the City of Orange, pursuant to its police powers afforded under the California Constitution, Article XI and California Government Code Section 37100, et seq., may adopt regulations to protect the health, safety and welfare of the community, including establishing parking standards for various uses; and
WHEREAS, the current noticing and posting requirements for residential and commercial land use entitlement applications in the City, are contained in Orange Municipal Code (OMC) Chapter 17.08; and
WHEREAS, in furtherance of better informing residents and property owners about pending applications at nearby properties, City staff has recommended revising the noticing procedures for land use applications; and
WHEREAS, this Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA Guidelines, and the City’s environmental procedures, and has been found to be exempt, consistent with the findings in Section II of this Ordinance; and
WHEREAS, the Planning Commission, having considered the proposed changes to Title 17 of the OMC contained herein at a public hearing held on July 19, 2021, and receiving public testimony on the item, has determined that the proposed Ordinance is justified and recommends approval thereof; and
WHEREAS, the City Council, having conducted a public hearing on September 14, 2021, and receiving public testimony on the item, has determined that the proposed Ordinance is justified and approves thereof; and
WHEREAS, the City Council does therefore determine that this Ordinance will serve and preserve the public health, safety and welfare of the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION I:

The recitals stated above are true and correct, incorporated herein, and form the basis for the adoption of this Ordinance.
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2 SECTION II:
(1) The proposed Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15060(c)(2) and 15060(c)(3), because the Ordinance simply provides procedural noticing and posting requirements.

The proposed Ordinance does not cause changes to the residential density established in the General Plan. It does not involve a specific site or development project, and does not otherwise result in a physical change that could cause an impact to the environment.

Adoption of the Ordinance is therefore not a "project" as defined in CEQA Guideline 15378.
(2) The proposed Ordinance is exempt from CEQA per CEQA Guideline 15061(b)(3) because it can be seen with certainty, after review and evaluation of the facts regarding the Ordinance and its application, that there is substantial evidence that adoption of the Ordinance would not have a significant effect on the environment and the common sense exemption applies.
(3) In the unlikely event adoption of the Ordinance would constitute a project under CEQA, it is categorically exempt from the provisions of CEQA per CEQA Guideline 15321(a) (Class 21, Enforcement Actions by Regulatory Agencies) because said adoption is an action taken by the City as a regulatory agency and involves “enforcement of a law, general rule, standard, or objective, administered or adopted by the regulatory agency.” SECTION III:

Table 17.08.020 of the Orange Municipal Code, “Zoning – General Administrative Procedures – Reviewing Bodies,” is hereby amended to read as follows:

Table 17.08.020
Type of Procedure, Permit or Hearing CDD DRC ZA PC CC
Zoning Ordinance Amendment A A X
Zone Change A A X
Conditional Use Permit A A(1) X(1) X(1) X(1)
Variance A A(1) X(1) X
Administrative Adjustment Permit X
Temporary Use (Non-Recurring) Permit A X(1) X(1)
161
3 Design Review A/X(1) X(1)
Administrative Design Review X(1)
Old Towne Demolition Permit A X(1) X
Site Plan Review—Minor X
Site Plan Review—Major A A X
Tentative Tract Map A A X
General Plan Amendment A A X
Environmental Documentation A X(1) X(1)
Sober Living Permit X
Reasonable Accommodation X(1)
Tentative Parcel Map X(1) X(1) X(1)
Temporary Use (Recurring) Permit X
Alcohol Production Permit X
Key:

CDD = Community Development Director
DRC = Design Review Committee
ZA = Zoning Administrator
PC = Planning Commission
CC = City Council
A = Advisory
X = Final project determination
(1) = Restricted to certain applications
GENERAL NOTES:
(a) All items may be finally decided by the City Council upon appeal. (b) When more than one type of application is filed for a single project, the application requiring the highest level of approval shall dictate the review process for the entire group of applications.
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4 SECTION IV:

Section 17.08.020.C.2 of the Orange Municipal Code, “Zoning – General Administrative Procedures – Reviewing Bodies – Zoning Administrator – Power and Duties,” is hereby amended to add the following:
e. Decide upon administrative adjustments.

SECTION V:

Section 17.08.020.E.1 of the Orange Municipal Code, “Zoning – General Administrative Procedures – Reviewing Bodies – Community Development Director – Power and Duties,” is hereby amended to add the following:
f. Decide upon sober living permits
g. Decide upon reasonable accommodation requests.
h. Decide upon temporary use (recurring) permits
SECTION VI:

Table 17.08.040 of the Orange Municipal Code, “Zoning – General Administrative Procedures – Notice of Hearings,” is hereby amended to read as follows:

Table 17.08.040
Type of Procedure,
Permit or Hearing
Mail to Surrounding
Property Owners
Publication
and/or Posting
Other
Appeal (a)
Conditional Use Permit Yes Post
Demolition Permit, Old Towne (b)
Design Review Yes Post
Development Agreement Yes Publish and Post
Environmental Impact Report Yes Publish and Post (b)
General Plan Amendment (Map) Yes Publish and Post
General Plan Amendment (Text) No Publish
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5 Type of Procedure,
Permit or Hearing
Mail to Surrounding
Property Owners
Publication
and/or Posting
Other
Negative Declaration/
Mitigated Negative Declaration
(b)
Site Plan Review—Major Yes Post
Site Plan Review—Minor No Post
Tentative Tract Map Yes Publish and Post
Variance Yes Post
Zone Change Yes Publish and Post
Zoning Ordinance Amendment No Publish (c)
Administrative Adjustment (d)
Administrative Design Review Yes Post
Tentative Parcel Map (d)
Temporary Use Permit (d)
Sober Living Permit (d)
Reasonable Accommodation (d)
Alcohol Production Permit (d)
Supportive Housing Yes Post (e)
Transitional Housing Yes Post (e)
NOTES:
(a) Notification shall occur in same manner as was required for the original permit issuance.
(b) Notification shall be required in accordance with California Environmental Quality Act Guidelines and the City’s Local CEQA Guidelines as determined by the highest entitlement.
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6 (c) In the event the amendment affects the permitted uses of real property, owners of subject real property and surrounding properties shall also be notified. (d) Noticing or notification is not required.
(e) Only if requesting an alternative parking standard.

SECTION VII:

Section 17.08.040.B.1.a of the Orange Municipal Code, “Zoning – General Administrative Procedures – Notice of Hearings – Noticing Requirements,” is hereby amended to read as follows:
a. Property Owner. Notice of hearing shall be mailed or delivered to the owner of the subject real property or to the owner's authorized agent.

SECTION VIII:

Section 17.08.040.B.3 of the Orange Municipal Code, “Zoning – General Administrative Procedures – Notice of Hearings – Noticing Requirements,” is hereby amended to read as follows:

3. For all hearings requiring publication of notice, notice shall be made by publication in a local newspaper of general circulation in the City at least one time.

SECTION IX:

Section 17.08.040.B.4 of the Orange Municipal Code, “Zoning – General Administrative Procedures – Notice of Hearings – Noticing Requirements,” is hereby amended to read as follows:

4. When notice is provided through either publication or posting, the following shall apply:

SECTION X:

Sections 17.08.040.B.5 and 17.08.040.B.6 of the Orange Municipal Code, “Zoning – General Administrative Procedures – Notice of Hearings – Noticing Requirements – Actions Where Public Hearing Is Not Required” and “- Posting Requirements are hereby added to read as follows:

5. Actions where public hearing is not required. Noticing for application types not covered by State law, shall be posted 10 days prior to final action on the application. These applications include but not limited to Administrative Adjustment, Design Review Committee, Minor Site Plan, and Administrative Design Review.

6. Posting Requirements. As specified in the Community Development Noticing Procedures.
165
7 SECTION XI:

Section 17.10.050.C of the Orange Municipal Code, “Zoning – Specific Administrative Procedures – Administrative Adjustments – Zoning Administrator Review,” is hereby amended to read as follows:

C. Zoning Administrator Review. The Zoning Administrator shall have the authority to review administrative adjustment permit applications and may act to approve, conditionally approve, or deny such applications. No public hearing shall be required to consider the issuance of an administrative adjustment permit. Notice shall be in accordance with Table 17.08.040.

SECTION XII:

Section 17.10.050.D.2 of the Orange Municipal Code, “Zoning – Specific Administrative Procedures – Administrative Adjustments – Actions Considered to be Administrative Adjustments – Adjustment of Other Development Standards,” is hereby amended to read as follows:

2. Adjustment of Other Development Standards. Other development standards in all zones may be adjusted a maximum of ten (10) percent. Any proposed deviation in excess of this limit shall be considered a variance and shall be subject to the provisions of Section 17.10.040 .

SECTION XIII:

Section 17.10.070.E.4 of the Orange Municipal Code, “Zoning – Specific Administrative Procedures – Design Review – Administrative Design Review – Procedure and Criteria,” is hereby amended to read as follows:

4. Procedure and Criteria. The Community Development Director, pursuant to Section 17.08.020, shall be responsible for administrative design review. Once an application for administrative design review has been deemed complete, the Community Development Director shall consider and approve, deny or refer the project to the Design Review Committee.

In making such determination, the Community Development Director shall consider adopted design standards and guidelines where applicable, the general criteria set forth in Section

17.10.070.D, and the findings required in subsections 17.10.070.G.3 and 4. Appeals of decisions by the Community Development Director shall be made in accordance with the City appeal procedures set forth in Section 17.08.050 . Notification of administrative design review shall be in accordance with Section 17.08.040 and Community Development Noticing Procedures.

SECTION XIV:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase 166
8 thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION XV:

The City Clerk is hereby directed to certify the adoption of this Ordinance and cause the same to be published as required by law. This Ordinance shall take effect thirty (30) days from and after the date of its final passage.

ADOPTED this ____ day of ___________________, 2022.

Mark A. Murphy, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the ___ day of _____________, 2021, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2022 was duly passed and adopted by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
________________________________________
Pamela Coleman, City Clerk, City of Orange
167
Agenda Item
City Council
Item #: 3.15. 1/11/2022 File #: 21-0699
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

1. SUBJECT
Second Reading and adoption of an Ordinance of the City Council of the City of Orange amending Title 17 of the Orange Municipal Code (Zoning) to update and establish new development standards for fences and walls. Ordinance No. 19-21.

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on December 14, 2021.

The Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, Murphy
NOES: None
ABSENT: None

3. RECOMMENDED ACTION
Adopt Ordinance No. 19-21.

4. ATTACHMENTS
· Ordinance No. 19-21
City of Orange Printed on 1/5/2022Page 1 of 1
powered by Legistar™
168
Agenda Item
City Council
Item #: 3.15. 1/11/2022 File #: 21-0699
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Pamela Coleman, City Clerk

2. SUMMARY
The Introduction and First Reading of the above-entitled Ordinance was approved at a Regular Council Meeting on December 14, 2021.

The Ordinance is now presented for Second Reading by title only, and adoption.

Vote at First Reading: AYES: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, Murphy
NOES: None
ABSENT: None

3. RECOMMENDED ACTION
Adopt Ordinance No. 19-21.

4. ATTACHMENTS
· Ordinance No. 19-21
City of Orange Printed on 1/5/2022Page 1 of 1
powered by Legistar™
169
ORDINANCE NO. 19-21

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE AMENDING TITLE 17 OF THE

ORANGE MUNICIPAL CODE (ZONING) TO

UPDATE AND ESTABLISH NEW DEVELOPMENT

STANDARDS FOR FENCES AND WALLS
SECTION I:

The action proposed herein is not a project subject to the California Environmental Quality Act (CEQA) in accordance with CEQA Section 21065 and State CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15378. The Ordinance involves general policy and procedure making that would not cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Furthermore, the action is exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(3), the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Such is the case with the Ordinance. No new development is proposed and the regulations for fences and walls would not result in a significant impact on the environment. Furthermore, any development applications subject to these provisions will be reviewed for CEQA compliance under a separate entitlement. On a case-by-case review of each project, the appropriate environmental document will be prepared to address any project-specific impacts. Therefore, the Ordinance will not have a significant effect on the environment.

SECTION II:

Section 17.04.025 of the Orange Municipal Code, “Zoning - Definitions – ‘F’ Definitions,” is hereby amended to add the following definitions:

FENCE – A substantial solid barrier intended to enclose, separate or surround.

Landscaping that forms a substantial solid barrier within a front yard setback will be considered a fence.

FENCE, OPEN – A barrier intended to enclose, separate or surround which is constructed in such a way that no more than 20% of the surface area of the fence obstructs a view through the fence from a position perpendicular to the fence.

SECTION III:

Section 17.04.042 of the Orange Municipal Code, “Zoning - Definitions – ‘W’ Definitions,” is hereby amended to revise the following definition to read as follows:
170
2 WALL - A substantial solid barrier intended to enclose, separate or surround. Landscaping that forms a substantial solid barrier within a front yard setback will be considered a wall.

SECTION IV:

Section 17.04.042 of the Orange Municipal Code, “Zoning - Definitions – ‘W’ Definitions,” is hereby amended to add the following definition:

WALL, SOUND – A substantial solid barrier intended to separate land uses and designed with sound-dampening material to absorb sound waves.

SECTION V:

Section 17.10.050.D of the Orange Municipal Code, “Zoning - Specific Administrative Procedures – Administrative Adjustments – Actions Considered to be Administrative Adjustments,” is hereby amended to add the following subsection, with the remaining subsections renumbered accordingly:

2. Adjustment of Wall Height Requirements. The Zoning Administrator may approve wall heights greater than permitted subject to the provisions of Section 17.12.070, up to a maximum of two additional feet.

SECTION VI:

Section 17.12.070, “Zoning – General Regulations Applicable to All Districts – Fences and Walls,” is hereby added to the Orange Municipal Code to read as follows:

17.12.070 – Fences and Walls.

Fences and walls shall be permitted in all zoning districts subject to the following regulations:

A. All zoning districts.

1. Location.
a. All perimeter fences and walls shall be constructed on the property line unless a different location is permitted by the Community Development Director, or unless otherwise specified by applicable design standards.
b. No parallel fence or wall shall be constructed less than five feet from an existing fence or wall, unless approved by the Community Development Director.

2. Corner cut off shall be required per Section 17.14.150.

3. Materials are allowed per Table 17.12.070.A.3.
171
3 Table 17.12.070.A.3
Material R and MH
Zones
OP and C
Zones
M and SG
Zones
MU Zones PI, A1, RO,
and
SH Zones
Wood,
masonry,
vinyl,
composite
P1 P1 P1 P1 P1
Decorative
metals
P1,2 P1,2 P1,2 P1,2 P1,2
Chain link -3 -3 P1, 3 -3 P1
Coated vinyl
mini-mesh
chain link
P1 P1 P1 - P1
Barbed wire,
concertina
wire
-4 - P1,6 - P1,6
Electrified
fences
P5 - P1,6 - P1,6
P = Permitted
- = Not permitted
Notes:
(1) If within a historically or architecturally significant district, additional material restrictions may apply. Refer to the corresponding design standards for the appropriate district.
(2) Sheet metal and corrugated steel are permitted with Community Development Director approval when integrated into the overall design and architecture of the project. (3) Chain link fencing shall not be erected in any required yard setback facing a public or private street. Exception: Chain link fencing may be used for security purposes for public utility structures and for temporary fencing needs (construction sites, special events, vacant lots, etc.) and screening shall be required subject to the determination of the Community Development Director.
(4) Exception for public utility structures.
(5) Electrified fences are not allowed on any lots less than 20,000 square feet or as perimeter fencing. A lot 20,000 square feet or more may have electrified fences inside an enclosing perimeter fence.
(6) Materials not allowed as perimeter fencing may be allowed as interior fencing, subject to Community Development Director approval.

4. Greater Height of Fences and Walls in Side and Rear Yards. 172
4 a. A greater height than the height limit established, up to a maximum of two additional feet, may be considered by the Zoning Administrator through an Administrative Adjustment. Refer to Section 17.10.050.
b. A greater height than the height limit established may be considered by the Planning Commission through a Variance. Refer to Section 17.10.040.C.

B. Residential.

1. Side and Rear Yards—Standard Lot. Fence and wall heights shall be measured from adjacent grade to the top of the fence or wall structure. Any items connected to the fence or wall, such as, but not limited to decorative latticework, privacy toppers, and screens, shall be counted towards the overall height of the fence or wall, as referenced in Figure 17.12.070.B.1.

Fences and walls located in the side and rear yards of standard lots shall be limited in height as follows:
a. Six feet, as measured from the highest elevation of land contiguous to the fence, and ten feet as measured from the lowest elevation contiguous to the fence. b. For properties within 300 feet of freeways or railroads and build out Noise Contours, as defined by the Orange General Plan Noise Element – Noise Contours and subsequent noise modifications as defined by adopted noise studies, sound wall height may be up to eight feet as measured from the highest elevation of land contiguous to the wall and ten feet as measured from the lowest elevation contiguous to the wall. c. For properties abutting a non-residential zoning district the height may be up to eight feet as measured from the highest elevation of land contiguous to the fence or wall, and ten feet as measured from the lowest elevation contiguous to the fence or wall.

Figure 17.12.070.B.1
173
5 2. Front Yard—Standard Lot. In the required front yard area, the height shall be limited to three and one-half feet.

3. Corner, Reverse Corner and Key Lots. For corner, reverse corner, and key lots, fence and wall heights shall be limited as indicated on Figure 17.12.070.B.3.

Figure 17.12.070.B.3
174
6 4. Tract Fencing. Fences and walls adjacent to public streets, surrounding residential tracts, shall be constructed by the developer and maintained in a safe structural condition by the homeowner's association, or by each individual home owner on whose property the fence or wall is located if no homeowner's association exists. Periodic repair or maintenance of any section of the fence or wall shall be done in a manner that matches the original design and appearance. The intent of this section is to ensure that the fence or wall maintains a consistent appearance around the entire perimeter of the tract, and is not intended to preclude repainting, replastering or such other maintenance as may be required, provided such treatment is applied to the entire contiguous fence or wall, including fence or wall area beyond the individual property.

C. Mobile Home.

1. Perimeter Screening. In order to provide a buffer between mobile home parks and abutting uses, an eight-foot high solid, masonry wall shall be installed and maintained along, but no closer than, ten feet from the ultimate or future right-of-way from any public street and three feet from any mobile home. Where there is a difference in elevation on opposite sides of such screen, the height shall be measured from the highest grade level.

2. For properties within 300 feet of freeways or railroads and build out Noise Contours, as defined by the Orange General Plan Noise Element – Noise Contours and subsequent noise modifications as defined by adopted noise studies, sound wall height may be up to ten feet as measured from the highest elevation of land contiguous to the wall and twelve feet as measured from the lowest elevation contiguous to the wall
D. Commercial.

1. Division Wall Required.
a. A masonry division wall at least eight feet in height as measured from the highest elevation of land contiguous to the fence, and not greater than ten feet in height as measured from the lowest elevation contiguous to the fence, shall be constructed on all property lines adjacent to any residential district, except in a street-facing, front, side, or rear yard setback where the wall shall be limited to forty-two (42) inches in height. Division wall height taller than ten feet as measured from the lowest elevation contiguous to the wall may be considered by the Community Development Director.
b. Properties with an outdoor use component that is integral to the principal use of the subject site and located adjacent to any freeway or railroad may have fences and walls taller than the limits set forth herein. Refer to Section 17.12.070.A.4. c. Commercial properties not in conformance with Section 17.12.070 shall comply at the time of any substantial improvement, as defined by Section 17.04.038.

2. Other Fences and Walls. Fences and walls are permitted in any yard area subject to the following regulations:
175
7 a. Front Yard. In the required front yard area, the height shall be limited to forty-two (42) inches.
b. Side Yard. In required street side yard areas, the height shall be limited to forty-two (42) inches.
c. All Other Areas. In all other areas, the height shall be limited to six feet as measured from the highest elevation of land contiguous to the fence or wall, and ten feet as measured from the lowest elevation contiguous to the fence or wall.

3. Location. All perimeter fences and walls shall be constructed on the property line unless a different location is permitted by the Community Development Director, or unless otherwise specified by applicable design standards. No parallel fence or wall shall be constructed less than five feet from an existing fence or wall, unless approved by the Community Development Director.

E. Industrial.

1. Division Wall Required.
a. A masonry division wall at least eight feet in height as measured from the highest elevation of land contiguous to the fence, and not greater than ten feet in height as measured from the lowest elevation contiguous to the fence, shall be constructed on all property lines adjacent to any residential district, except in a street-facing, front, side, or rear yard setback where the wall shall be limited to forty-two (42) inches in height. Division wall height taller than ten feet as measured from the lowest elevation contiguous to the wall may be considered by the Community Development Director.
b. In industrial properties where a stationary noise source produces exterior noise greater than 65 dBA, the division wall shall be at least eight feet as measured from the highest elevation of land contiguous to the fence, and twelve feet as measured from the lowest elevation contiguous to the fence.
c. Industrial properties are not in conformance with Section 17.12.070 shall comply at the time of any substantial improvement, as defined by Section 17.04.038

2. Other Fences and Walls. Fences and walls are permitted in any yard area subject to the following height regulations:
a. Front Yard. In the required front yard area:
i. Solid fences and walls are limited to 42 inches in height. ii. Along non-arterial streets, open fences may be up to six feet in height.
176
8 b. All Other Areas. In all other areas, fences and walls may exceed eight feet in height provided that a site assessment is submitted for review by the Community Development Director. The assessment must address the following as a minimum:
i. A discussion evaluating the operational capacity of the existing land use and its impacts on the immediate vicinity. ii. An analysis demonstrating that the additional height does not negatively impact the surrounding property or public streets. iii. Scaled and dimensioned plans providing an adequate basis of evaluation.
iv. A concluding statement containing evidence that the proposed fence or wall will benefit the community and will not adversely impact any residential areas or any public streets.

The Community Development Director shall approve such fences and walls if it is found that the applicant’s site assessment contains the requisite evidence and analysis.

F. Mixed Use.

1. Division Wall Required.
a. A masonry division wall up to eight feet in height as measured from the highest elevation of land contiguous to the fence shall be constructed on all property lines adjacent to any single-family residential district, except in a street-facing, front, side, or rear yard setback where the wall shall be limited to forty-two (42) inches in height. In the OTMU-15S zone, a wood fence may also provide separation between properties. b. Pedestrian access points are encouraged and may be allowed subject to approval of the Community Development Director.
c. Properties not in conformance with Section 17.12.070 shall comply at the time of any substantial improvement, as defined by Section 17.04.038

2. Other Fences and Walls. Fences and walls are permitted in any yard area subject to the following:
177
9 a. Front Yard. In the front yard area, the height shall be limited to forty-two (42) inches.
b. Street Side Yard. In street side yard areas, the height shall be limited to forty-two (42) inches.
c. All Other Areas. In all other areas, the height shall be limited to six feet, as measured from the side of the fence or wall with the highest grade. d. For properties within 300 feet of freeways, railroads and build out Noise Contours, as defined by the Orange General Plan Noise Element – Noise Contours and subsequent noise modifications as defined by adopted noise studies, sound wall height may be up to eight feet as measured from the highest elevation of land contiguous to the wall and ten feet as measured from the lowest elevation contiguous to the wall, except in a street-facing, front, side, or rear yard setback, where the wall shall be limited to forty-two (42) inches in height.

G. Public Institutions.

1. Division Wall Required. A masonry division wall shall be constructed on all property lines adjacent to any residential district, except in a street-facing, front, side, or rear yard setback where the wall shall be limited to 42 inches in height. a. A masonry division wall at least eight feet in height as measured from the highest elevation of land contiguous to the fence shall be constructed on all property lines adjacent to any residential district, except in a street-facing, front, side, or rear yard setback where the wall shall be limited to forty-two (42) inches in height. b. In properties where a stationary noise source produces exterior noise greater than 65 dBA, the division wall shall be at least eight feet as measured from the highest elevation of land contiguous to the fence, and twelve feet as measured from the lowest elevation contiguous to the fence.
c. Properties which are not in conformance with Section 17.12.070 shall comply at the time of any substantial improvement, as defined by Section 17.04.038

2. Other Fences and Walls. Fences and walls are permitted in any yard area subject to the following height regulations:
a. Front Yard. In the required front yard area, the height shall be limited to 42 inches.
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10 b. All Other Areas. In all other areas, fences and walls may exceed six feet in height with a determination by the Community Development Director.

H. Agriculture, Open Space, and Slope and Hazard. Fences and walls shall be permitted in accordance to commercial regulations contained in 17.12.070.C.

I. Sand and Gravel.

1. Perimeter Screening. In order to provide a buffer between Sand and Gravel operations and abutting uses, an eight-foot high solid, masonry wall shall be installed and maintained along, but no closer than, ten feet from the ultimate or future right-of-way from any public street. Where there is a difference in elevation on opposite sides of such screen, the height shall be measured from the highest grade level.

2. A required screen shall be installed prior to commencement of operations.

3. Fences and walls not conforming to Section 17.12.070.I are subject to review and approval by the Community Development Director.

SECTION VII:

Section 17.14.180 and Figure 17.14.180.C of the Orange Municipal Code, “Zoning – Residential Districts – Fences and Walls,” are hereby deleted in their entirety.

SECTION VIII:

Section 17.14.260.E of the Orange Municipal Code, “Zoning – Residential Districts – Additional Development Standards for Mobile Home Parks – Perimeter Screening,” is hereby amended in its entirety to read as follows:

E. Fences and Walls. For fence and wall requirements refer to Section 17.12.070.

SECTION IX:

Section 17.18.140 of the Orange Municipal Code, “Zoning – Commercial Districts – Fences and Walls,” is hereby deleted in its entirety.
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11 SECTION X:

Section 17.19.140 of the Orange Municipal Code, “Zoning – Mixed Use Districts – Fences and Walls,” is hereby deleted in its entirety.

SECTION XI:

Section 17.20.100 of the Orange Municipal Code, “Zoning – Industrial Districts – Fences and Walls,” is hereby deleted in its entirety.

SECTION XII:

Section 17.22.095 of the Orange Municipal Code, “Zoning – Agricultural and Open Space Districts – Fences and Walls,” is hereby deleted in its entirety.

SECTION XIII:

Section 17.24.075 of the Orange Municipal Code, “Zoning – Public Institution District – Fences and Walls,” is hereby deleted in its entirety.

SECTION XIV:

Section 17.32.060.G.2 of the Orange Municipal Code, “Zoning – Sand and Gravel Extraction District – Operational Standards, Generally – Screening - Height,” is hereby amended in its entirety to read as follows:

2. Other Screening. See Section 17.12.070.I.

SECTION XV:

Section 17.34.130.B of the Orange Municipal Code, “Zoning – Off-Street Parking and Loading – Maintenance and Operation of Permanent Parking Areas – Border and Fencing,” is hereby amended in its entirety to read as follows:

B. Border and Fencing. Every parking area which abuts property located in any R (Residential) zone district shall be separated from such property by a view-obscuring masonry wall at least six feet in height but no greater than eight feet in height. An Administrative Adjustment may be considered per Section 17.10.050. Wall height shall be measured from the grade of the finished surface of the parking area closest to the contiguous R-zoned property or from the high grade side of the parking lot. However, the wall shall not exceed forty-two (42) inches in height in any required front yard area. Also, no wall is required where the elevation of the parking area along the property line immediately adjacent to the R-zoned property is six feet or more below the elevation of the R-zoned property.
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12 SECTION XVI:

If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION XVII:

ADOPTED this ____ day of ___________________, 20__.

Mark A. Murphy, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange

STATE OF CALIFORNIA )

COUNTY OF ORANGE )

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
________________________________________
Pamela Coleman, City Clerk, City of Orange
181
Agenda Item
City Council
Item #: 3.16. 1/11/2022 File #: 22-0009
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Audited Financial Statements and Related Financial Reports for the fiscal year ended June 30, 2021.

2. SUMMARY
Financial Reports and Statements provided by independent auditors as a result of the annual financial audit for the fiscal year ended June 30, 2021.

3. RECOMMENDED ACTION
Receive and file the following documents for the fiscal year ended June 30, 2021:

1. Annual Comprehensive Financial Report

2. Audit Communication Letter

3. Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheets

4. Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Investment Portfolio

5. Air Pollution Reduction Fund Financial Statements and Independent Auditors’ Report

6. Independent Auditors’ Report on Internal Control Over Financial Reporting

7. Housing Successor Fund Financial Statements

8. Single Audit of Federally Assisted Grant Programs

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
d: Effectively manage and develop City assets.

6. DISCUSSION AND BACKGROUND
Lance, Soll, and Lunghard, LLP provided audit services to the City for the fiscal year ended June 30, 2021. As an integral part of their audit, the firm considers the City’sinternal controls over our financial reporting and, while they did not express an opinion, their conclusion was they did not identify any deficiencies in internal control considered to be material weaknesses.

The City Finance staff includes three former auditors. Throughout the year, the Finance Department performs various internal audits to provide assurance both financial, and operational, controls and City of Orange Printed on 1/5/2022Page 1 of 3
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performs various internal audits to provide assurance both financial, and operational, controls and efficiencies are in place and are being followed. Staff believes oversight of our financial position and reporting requirements is being properly maintained.

The independent auditor’stesting resulted in a “clean”audit opinion. This provides assurance the City’s financial transactions are accurately recorded and can be relied upon not only for proper reporting of past financial results in the City’s FY 2021 Annual Comprehensive Financial Report (ACFR), but also on a go-forward basis as we craft the FY 2023 Budget. This is of utmost importance given the results reflected in the ACFR include fixed assets and restricted fund balances that are not readily available to staff for appropriation as budgeted expenditures for operating costs or Capital Improvement Projects.

In their report for the Single Audit of Federally Assisted Grant Programs, the independent auditor noted a finding for the Housing program’slate submission of the Annual Progress Report (APR) to the Department of Housing and Community Development. “Aspart of our audit procedures, we noted that the APR for the fiscal year ended June 30, 2020, was submitted to HCD on May 18, 2021.”Staff agrees with this finding and has implemented procedures to accumulate the required information and submit the report by the April 1 deadline, for the applicable year.

The following Reports, Letter and Statements are presented for fiscal year ended June 30, 2021:

1. Annual Comprehensive Financial Report (ACFR) - This report is divided into three major sections: the Introductory Section, the Financial Section and the Statistical Section. The Introductory Section includes a Letter of Transmittal. The Financial Section comprises the Audit Opinion, Management’s Discussion and Analysis, and the Basic Financial Statements. The Statistical Section provides important historical and trend information about the City. The Audit opinion is an “unqualified opinion”, which states that, in the auditor’sopinion, the basic financial statements of the City are presented fairly in all material respects and are in conformity with generally accepted accounting principles.

2. Audit Communication Letter - a report of recommendations made to management by the auditors to improve internal controls and/or operating efficiencies within the City.

3. Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheets - procedures performed solely to assist the City in meeting the requirements of Section 1.5 of the Article XIIIB of the California Constitution.

4. Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Investment Portfolio - independent review of investment operations and compliance with the City’s investment policy.

5. Air Pollution Reduction Fund Financial Statements and Independent Auditors’Report - audited financial statements in accordance with Generally Accepted Auditing Standards and the standards applicable to the financial audits contained in Government Auditing Standards.

6. Independent Auditors’Report on Internal Control Over Financial Reporting - a report to describe the scope of testing of the City’sinternal control over financial reporting and the results of that testing.

7. Housing Successor Fund Financial Statements- audited financial statements in City of Orange Printed on 1/5/2022Page 2 of 3
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7. Housing Successor Fund Financial Statements- audited financial statements in accordance with Generally Accepted Auditing Standards and the standards applicable to the financial audits contained in Government Auditing Standards.

8. Single Audit of Federally Assisted Grant Programs - audit of compliance requirements as described in the U.S. Office of Management and Budget (OMB) 2 CFR part 200, Uniform Grant Guidance.

7. ATTACHMENTS
· Annual Comprehensive Financial Report and Summary of Audit Results · Audit Communication Letter
· Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheets
· Independent Accountants’ Report on Agreed-Upon Procedures Applied to Investment Portfolio
· Air Pollution Reduction Fund Financial Statements and Independent Auditors’ Report · Independent Auditors’ Report on Internal Control Over Financial Reporting · Housing Successor Fund Financial Statements
· Single Audit of Federally Assisted Grant Programs
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184
Agenda Item
City Council
Item #: 3.16. 1/11/2022 File #: 22-0009
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Will Kolbow, Assistant City Manager/Administrative Services Director

1. SUBJECT
Audited Financial Statements and Related Financial Reports for the fiscal year ended June 30, 2021.

2. SUMMARY
Financial Reports and Statements provided by independent auditors as a result of the annual financial audit for the fiscal year ended June 30, 2021.

3. RECOMMENDED ACTION
Receive and file the following documents for the fiscal year ended June 30, 2021:

1. Annual Comprehensive Financial Report

2. Audit Communication Letter

3. Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheets

4. Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Investment Portfolio

5. Air Pollution Reduction Fund Financial Statements and Independent Auditors’ Report

6. Independent Auditors’ Report on Internal Control Over Financial Reporting

7. Housing Successor Fund Financial Statements

8. Single Audit of Federally Assisted Grant Programs

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
d: Effectively manage and develop City assets.

The City Finance staff includes three former auditors. Throughout the year, the Finance Department performs various internal audits to provide assurance both financial, and operational, controls and City of Orange Printed on 1/5/2022Page 1 of 3
powered by Legistar™
185
Item #: 3.16. 1/11/2022 File #: 22-0009
performs various internal audits to provide assurance both financial, and operational, controls and efficiencies are in place and are being followed. Staff believes oversight of our financial position and reporting requirements is being properly maintained.

The following Reports, Letter and Statements are presented for fiscal year ended June 30, 2021:

2. Audit Communication Letter - a report of recommendations made to management by the auditors to improve internal controls and/or operating efficiencies within the City.

4. Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Investment Portfolio - independent review of investment operations and compliance with the City’s investment policy.

7. Housing Successor Fund Financial Statements- audited financial statements in City of Orange Printed on 1/5/2022Page 2 of 3
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Item #: 3.16. 1/11/2022 File #: 22-0009

8. Single Audit of Federally Assisted Grant Programs - audit of compliance requirements as described in the U.S. Office of Management and Budget (OMB) 2 CFR part 200, Uniform Grant Guidance.

7. ATTACHMENTS
· Annual Comprehensive Financial Report and Summary of Audit Results · Audit Communication Letter
· Independent Accountants’ Report on Agreed-Upon Procedures Applied to the Appropriations Limit Worksheets
· Independent Accountants’ Report on Agreed-Upon Procedures Applied to Investment Portfolio
· Air Pollution Reduction Fund Financial Statements and Independent Auditors’ Report · Independent Auditors’ Report on Internal Control Over Financial Reporting · Housing Successor Fund Financial Statements
· Single Audit of Federally Assisted Grant Programs
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Year Ended June 30, 2021
Annual Comprehensive Financial Report
188
189

City of Orange
C a l i f o r n i a

Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021

Prepared by:

FINANCE DEPARTMENT

Will Kolbow
Assistant City Manager/Administrative Services Director 190

Elected Officials

CITY TREASURER
RICHARD A. ROHM

CITY CLERK

PAMELA COLEMAN
191
Introductory Section
192
i
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ii
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iii
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iv
196
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vi
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vii
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viii
200
ix
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x
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Financial Section
203
1 204
2 205
3 206
4 207
Management’s Discussion
and Analysis
208

5 MANAGEMENT’S DISCUSSION AND ANALYSIS

The purpose of this Management’s Discussion and Analysis is to interpret and summarize the financial changes in the City of Orange Financ ial Statements for Fiscal Year 2020-21. This analysis will focus on the significant changes in an effort to explain the City’s overall financial condition. We encourage readers to consider the information presented here in conjunction with the additional information furnished in our Letter of Transmittal, Notes to the Financial Statements, and the Statistical Section.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City’s Basic Financial Statements, which are comprised of three components: (1) Government-wide Financial Statements; (2) Fund Financial S tatements; and (3) Notes to the Financial Statements. In addition to the Basic Financial Statements and required information, this report also contains other supplementary information.

Government-wide Financial Statements. The Government-wide Financial Statements are designed to provide readers with a broad overview of the City’s financial position, in a manner similar to that of a private-sector business. These statements are reported on the full accrual basis of accounting. Thus, revenues and expens es are reported for some items that will not affect cash flows until future fiscal periods.

The Government-wide Financial Statements separate Governmental Activities that are principally supported by taxes and revenues from other agencies, from Business-type Activities that are intended to recover all, or a significant portion, of their costs through user fees and charges. The Governmental Activit ies of the City include General Government, Public Safety, Public Works, Community De velopment, Parks and Library, Economic Development, and Interest on Long-Term Debt, when applicable . The City’s two Business- type Activities are Water and Sanitation.

The Statement of Net Position presents information on all of the City’s assets and deferred outflows of resources, and liabilities and deferred inflows of resources; the difference between the four is reported as net position. Total assets include all capital items including infrastructure. Evaluating increases or decreases in net position over time will serve as a useful indicator of whether the financial position of the City is improving or declining.

The Statement of Activities presents information on the net cost of each governmental function (activity) during the fiscal year. This statement also identifies the amount of general revenues needed to fully fund each governmental function.

Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregate d for specific activities or objectives. The City, like other state and local governments, uses fund accounting to demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: Governmental Funds, Proprietary Funds, and Fiduciary Funds. 5 209
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Government-wide
Financial Statements
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Fund Financial Statements
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Notes to the
Financial Statements
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69 9. Long-Term Liabilities
Following is a reconciliation of long-term liabilities for the year ended June 30, 2021:

Beginning
Balance Additions Deletions
Ending
Balance
Amounts Due
Within One
Year
Amounts Due
Beyond One
Year
Governmental activities:

Direct borrowing:

Loans Payable $ 779,235 - 237,778 541,457 237,778 303,679 Lease revenue bonds - 29,930,000 - 29,930,000 520,000 29,410,000 Premium on lease
revenue bonds - 4,375,452 145,848 4,229,604 145,848 4,083,756 Pension obligation bonds - 265,478,776 - 265,478,776 7,017,926 258,460,850 Other liabilities:

Compensated absences 9,092,621 4,491,624 4,191,779 9,392,466 4,330,010 5,062,456 Claims payable 17,800,183 3,244,586 2,170,751 18,874,018 5,713,107 13,160,911 Total Govt. activities 27,672,039 307,520,438 6,746,156 328,446,321 17,964,669 310,481,652 Business-type activities
Compensated absences 685,013 297,584 160,393 822,204 190,962 631,242 Pension obligation bonds - 21,006,224 - 21,006,224 677,074 20,329,150 Total Business activities 685,013 21,303,808 160,393 21,828,428 868,036 20,960,392 Total $28,357,052 328,824,246 6,906,549 350,274,749 18,832,705 331,442,044 In April 2018 and May 2019, the City entered into a series of loan agreements with Southern California Edison for LED retrofit of city-owned streetlights. The loans total $1,126,322 and carry a zero percent interest rate. The outstanding balance at June 30, 2021 is $547,457.

The annual payments are as follows:

Year Ending
June 30 Principal
2021-22 $ 237,778
2022-22 156,440
2023-24 70,095
2024-25 49,772
2025-26 27,372
Total $ 547,457
On July 16, 2020, the City of Orange Public Facilities Financing Authority issued Lease Revenue Bonds Series 2020A in the amount of $29,930,000. Proceeds of the bonds will be used to: (i) finance the construction of a new Fire Headquarters and Station No. 1, roof replacement and other improvements to the City’s Police Headquarters and the City’s other fire stations; and installation of security improvements at various City facilities; and (ii) pay costs of issuance of the Bonds. Interest rate on the bonds is 4%. The bonds are payable in annual installments of $520,000 to $1,680,000 and are scheduled to mature in 2051.

The annual debt service payments for these bonds are made from the General Fund and are shown on the following page.
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Required Supplementary
Information
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Supplementary Schedules
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Statistical Section
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377

CITY OF ORANGE

ORANGE CIVIC CENTER
POST OFFICE BOX 449
300 EAST CHAPMAN AVENUE, ORANGE CALIFORNIA 92866-1591
(714) 744-5500
289527 Cover BudgetBook_R1.indd 4 7/6/16 9:51 AM67827_A_Cover.indd 4 1/16/17 11:01 AM 378
December 13, 2021

To the Honorable Mayor and Members of the City Council
City of Orange, California

We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Orange, California (the City) for the year ended June 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing o f our audit. We have communicated such information in our letter to you dated April 28, 2021. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings and Other Issues

Qualitative Aspects of Significant Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in the notes to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to accounting for fiduciary activities by adopting Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities, in fiscal year 2020-21. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Changes in Fiduciary Net Position. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates of its net pension liability, total other post -employment benefits liability, and self-insurance liability are based on actuarial valuation specialist assumptions.

We evaluated the key factors and assumptions used to develop the net pension liability, total other postemployment benefits liability, and self -insurance liability to determine that they are reasonable in relation to the financial statements taken as a whole.

Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The financial statement disclosures are neutral, consistent, and clear.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 379

To the Honorable Mayor and Members of the City Council
City of Orange, California

Significant Unusual Transactions

Management is responsible for the policies and practices used to account for significant unusual transactions. No significant unusual transactions have occurred during fiscal year 2020-21.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.

Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.

Disagreements with Management

For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Circumstances that Affect the Form and Content of the Auditor’s Report

New auditing standards were implemented in fiscal year 2020 -2021 related to Statement of Auditing Standards 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements , through Statement of Auditing Standards 140, Supplementary Information in Relation to the Financial Statements as a Whole . These standards updated the form and content of the financial statement auditor’s report. The purpose of the change was to present an easier format for users to understand the results of the audit and management’s responsibilities.

Management Representations

We have requested certain representations from management that are included in the management representation letter dated December 13, 2021.

Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues Discussed with Management

We generally discuss a variety of matters, including the significant events or transactions that occurred during the year, business conditions affecting the City and business plans and strategies that may affect the risks of material misstatements, the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions oc curred in the normal course of our professional relationship and our responses were not a condition to our retention. 380

To the Honorable Mayor and Members of the City Council
City of Orange, California

Other Matters

We applied certain limited procedures to management’s discussion and analysis; the budgetary comparison schedules for the General Fund and Proposition 172, Federal, State and Local Grants, Housing Successor, and Measure M special revenue funds; the required pension -related schedules; and the requ ired other post-employment benefits-related schedules, as listed in the table of contents of the Annual Comprehensive Financial Report, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining and individual fund statements and schedules , which accompany the financial statemen ts but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplemen tary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the introductory and statistical sections of the Annual Comprehensive Financial Report, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2020-2021 audit:

GASB Statement No. 84, Fiduciary Activities.

GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statement Nos. 14 and 61.

GASB Statement No. 98, the Annual Comprehensive Financial Report.

The following GASB pronouncements are effective in the following fiscal year s’ audits and should be reviewed for proper implementation by management:

Fiscal year 2022

GASB Statement No. 87, Leases.

GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. 381

To the Honorable Mayor and Members of the City Council
City of Orange, California

Fiscal year 2023

GASB Statement No. 91, Conduit Debt Obligations.

GASB Statement No. 94, Public-Private and Public -Public Partnerships and Availability Payment Arrangement.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

Restriction on Use

This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,

Brea, California

382
INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON

PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS

To the Honorable Mayor and Members of the City Council
City of Orange, California

We have performed the procedures enumerated below on the accomp anying Appropriations Limit Worksheet No. 6 (or other alternative computation) of the City of Orange, California (the City), for the year ended June 30, 2021. These procedures are the responsibility of the City, which were agreed to by the City and the League of California Cities (as presented in t he publication entitled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City in meet ing the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City’s manag ement is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation).

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of recomputing th e Appropriations Limit Worksh eet No. 6 (or other alternative computation). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whet her the procedures performed are appropriate for their purposes.

The procedures performed and our findings were as follows:

1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in th ose worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Worksheet No. 6, w e multiplied line A, last year's limit, by line D, ratio of change and compared the resulting amount to line E, this year's limit.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the current year information presented in the ac companying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above.

Finding: No exceptions were noted as a result of our procedures.

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

Finding: No exceptions were noted as a result of our procedures.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 383

To the Honorable Mayor and Members of the City Council
City of Orange, California

We were engaged by the City to perform this agreed-upon procedu res engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the ac companying Appropriations Limit Worksheet No. 6 (or other alternative computation). Accordingly , we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our o ther ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information of the City Council and management of the City of Orange and is not intended to be, and should not be, us ed by anyone other than these specified parties.

Brea, California
August 11, 2021
384

CITY OF ORANGE, CALIFORNIA
FISCAL YEAR 2020-2021

APPROPRIATIONS LIMIT CALCULATION

A. 2019-2020 APPROPRIATIO NS LIMIT: $ 186,534,130

B. 2020-2021 CHANGE IN PER CAPITA
PERSONAL INCOME 3.73%

C. 2020-2021 CHANGE IN POPULATION: -0.25%

D. RATIO OF CHANGE (1.03 73 X 0.9975): 1.03470675

E. 2020-2021 APPROPRIATIO NS LIMIT: $ 193,008,124
($186,534,130 X 1.03470675)

385
INDEPENDENT ACCOUNTANTS’ REPORT

ON AGREED-UPON PROCEDURES

To the Honorable Mayor and Members of the City Council
City of Orange, California

We have performed the procedures enumerated below to assist the City of Orange, California (the City) in evaluating the Treasurer’s Report for the month ended June 30, 2021, for compliance with the provisions of the California Government Code (the Code) an d with the City’s investment policy, dated June 9, 2020 , (the Policy) . The City’s management is responsible for the Treasurer’s Report for the month ended June 30, 2021, the compliance with the Policy and the Code and for selecting that such criteria are appropriate for your purpose.

The City’s management has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the Treasurer’s Report for the month ended June 30, 2021, for compliance with the provisions of the Code) and with the Policy . This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We compared the amount of the City’s investments (cost and market) as of June 30, 2021, per the City’s records and third-party pricing documentation received by the City.

Finding: No exceptions were noted as a result of this procedure.

2. We compared the type of investments, purchase date, maturity date, interest rate, cost and special characteristics included on the Treasurer’s Report for the month ended June 30, 2021, to the third-party custodian and broker statements.

Finding: No exceptions were noted as a result of this procedure.

3. We compared the maturities of the investments to the limitations placed in the City’s Statement of Investment Policy and the California Government Code.

Finding: No exceptions were noted as a result of this procedure.

4. We compared the limitations on specific investments with the City’s Statement of Investment Policy and the California Government Code.

Finding: No exceptions were noted as a result of this procedure.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 386

To the Honorable Mayor and Members of the City Council
City of Orange, California

5. We read the City Treasurer’s Report for the month of June 30, 2021, to ascertain that it contains all the information required by California Government Code Section 53646 as follows:

a. Included the type of investment, issuer, date of maturity, par and dollar amount invested on all securities, investments and monies held by the City.

b. Included those funds under management of contracted parties (fiscal agents, trustee, deferred compensation, plan administrators, etc.). Included market value (and source) as of the date of the report for all securities held by the City or under management of any outside party that is not also a local agency or the State of California Local Agency Investment Fund.

c. Stated compliance of the portfolio to the investment policy of the City.

d. Included a statement addressing the ability of the City to meet the pool’s expenditure requirements for the next six months.

e. Included the most recent statements form the Local Agency Investment Fund and the County Investment Pools, in lieu of the information required by (b) and (d) above, for City investments that have been placed in those pools.

Finding: No exceptions were noted as a result of this procedure.

6. We read the City’s Statement of Investment Policy to verify that it was adopted within the time parameters established by the California Government Code.

Finding: No exceptions were noted as a result of this procedure.

7. We were asked to verify that the City’s broker/dealers have read and understand the Investment Policy.

Finding: The City does not have a formal agreement or contract with the broker/dealer since they are not required to use the broker/dealer for trades and there are no fees or commissions charged. The City Treasurer authorizes the use of designated brokers and ensures that the City has written documentation with the broker’s signature stating that the broker will adhere to the City’s investment policy.

8. We reviewed investment transaction documentation to verify that appropriate approvals were obtained to execute investment transactions.

Finding: No exceptions were noted as a result of this procedure.

9. We reviewed custodial transaction documentation to ensure that such transactions were conducted by approved personnel.

Finding: No exceptions were noted as a result of this procedure.

10. We reviewed internal controls established by the City to identify material weaknesses in the purchasing, selling, reconciliation, and reporting of investment activities.

Finding: No exceptions were noted as a result of this procedure. 387

To the Honorable Mayor and Members of the City Council
City of Orange, California

11. We inspected the Staff Report submitting the City Treasurer’s Report for the month of June 30, 2021, to the City Council, to ascertain that it meets the timing requirements of California Government Code Section 53646.

Finding: The Treasurer’s Report was submitted to the City Council on August 10, 2021, which is within the 45 days set forth by the City’s Investment Policy. The California Government Code requires submittal within 30 days of quarter end; although the Treasurer’s Report was completed within this 30 -day deadline on July 20, 2021, it was not submitted to the City Council within the 30-day deadline.

Management’s Response:

Because the City Council only meets once per month, the thirty -day deadline does not allow the Investment Advisory Committee time to review the Treasurer’s Report before the item is presented on the agenda. In the future, the Council will receive the Treasurer’s Report within the thirty -day deadline. The item will then be reviewed by the Investment Advisory Committee and presented for f ormal acceptance at the next occurring City Council meeting.

We were engaged by the City to perform this agreed -upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on evaluating the Treasurer’s Report for the month ended June 30, 2021, for compliance with the provisions of the Code) and with the Policy. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

Brea, California
December 13, 2021
388

CITY OF ORANGE, CALIFORNIA

AIR POLLUTION REDUCTION FUND
JUNE 30, 2021 FINANCIAL STATEMENT
389

CITY OF ORANGE, CALIFORNIA

AIR POLLUTION REDUCTION FUND

FINANCIAL STATEMENTS

WITH REPORT ON AUDIT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS

JUNE 30, 2021
390

CITY OF ORANGE, CALIFORNIA

AIR POLLUTION REDUCTION FUND

FINANCIAL STATEMENTS

WITH REPORT ON AUDIT

BY INDEPENDENT

CERTIFIED PUBLIC ACCOUNTANTS

YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
Page
Number

FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT .................................................................................................. 1

BASIC FINANCIAL STATEMENTS

GOVERNMENT - WIDE FINANCIAL STATEMENTS

Statement of Net Position .................................................................................................................... 4

Statement of Activities.......................................................................................................................... 5

FUND FINANCIAL STATEMENTS

Balance Sheet – Governmental Fund .................................................................................................. 6

Reconciliation of the Governmental Fund Balance
Sheet to the Statement of Net Position ...................................................................................... 7

Statement Of Revenues, Expenditures and Changes In
Fund Balance – Governmental Fund: ........................................................................................ 8

Reconciliation Of the Governmental Fund Statement Of
Revenues, Expenditures and Changes in Fund Balance
To The Statement of Activities ................................................................................................... 9

Notes to Financial Statements .............................................................................................................. 10

REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Comparison Schedule ........................................................................................................ 16

Note to Required Supplementary Information ................................................................................. 17

OTHER REPORT

Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards ................................................................................ 18

391
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Orange, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the go vernmental activities and the Air Pollution Reduction Fund (“the Fund”), a special revenue fu nd of the City of Orange, California, (the “City”) as of and for the year ended June 30, 2021, and the related n otes to the financial statements, which collectively comprise the Fund’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities and the Fund of the City as of June 30, 2021, and the respective changes in financial position for the year t hen ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards ge nerally accepted in the United States of America (GAAS) and the standards applicable to f inancial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only t he Fund and do not purport to, and do not present fairly the financial position of the City as of June 30, 2021, and the changes in its financial position for the year then ended in accordance with accounting principle s generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presenta tion of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control rel evant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial dou bt about the Fund’s ability to continue as a going concern for twelve months beyond the date of the financial statements.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 392

To the Honorable Mayor and Members of the City Council
City of Orange, California

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with G AAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the over ride of internal control. Misstatements are considered material if, there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

x Exercise professional judgment and maintain professional skept icism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the au dit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over the Fund. Accordingly, no such opinion is expressed. x Evaluate the appropriateness of accounting policies used and t he reasonableness of significant accounting estimates made by management, as well as evaluate th e overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or eve nts, considered in the aggregate, that raise substantial doubt about the Fund’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Other Reporting Responsibilities

Required Supplementary Information

Accounting principles generally accepted in the United States o f America require that the budgetary comparison schedule be presented to supplement the basic financ ial statements. Such information is the responsibility of management and, although not a part of the ba sic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplem entary information in accordance with auditing standards generally accepted in the United States of A merica, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financi al statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted the management’s discussion and analysis and required pension and other post- employment benefits schedules that accounting principles genera lly accepted in the United States of America require to be presented to supplement the basic financi al statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial re porting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. 2 393

To the Honorable Mayor and Members of the City Council
City of Orange, California

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated December 13, 2021 on our consideration of the City ’s internal control over the Fu nd’s financial reporting and on our tests of its compliance with certain provisions of l aws, regulations, contracts, and grant agreements and other matters. The purpose of that report is sol ely to describe the scope of our testing of internal control over financial reporting and compliance and th e results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over the Fund’s financial reporting or on compliance. That report is an integral part of an audit p erformed in accordance with Government Auditing Standards in considering the City’s internal control over the Fund’s financial reporting and compliance.

Brea, California
December 13, 2021

3 394

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental
Activities
Assets:

Cash and investments 109,278$
Receivables:

Accounts 46,502
Accrued interest 113
Total Assets 155,893
Deferred Outflows of Resources:

Proportionate share of pension deferrals 6,356
Proportionate share of OPEB deferrals 2,848
Total Deferred Outflows of Resources 9,204
Liabilities:

Proportionate share of net pension liability 49,692
Proportionate share of total OPEB liability 18,283
Total Liabilities 67,975
Deferred Inflows of Resources:

Proportionate share of OPEB deferrals 129
Total Deferred Inflows of Resources 129
Net Position:

Restricted for air pollution reduction projects 96,993
Total Net Position 96,993$
See accompanying notes to basic financial statements.
4 395

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net (Expenses)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Governmental Activities:

General government 57,706$ - $ 187,394$ - $ 129,688$ Public safety 8,017 - - - (8,017) Total Governmental Activities 65,723$ -$ 187,394$ -$ 121,671 General Revenues:

Investment income (140)
Total General Revenues (140)
Change in Net Position 121,531
Net Position at Beginning of Year (24,538)
Net Position at End of Year 96,993$
Program Revenues
Functions/Programs
See accompanying notes to basic financial statements.
5 396

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

BALANCE SHEET - GOVERNMENTAL FUND
JUNE 30, 2021
Assets:

Cash and investments 109,278$
Receivables:

Accounts 46,502
Interest 113
Total Assets 155,893$
Fund Balances:

Restricted for air pollution reduction projects 155,893 $ Total Fund Balances 155,893$
See accompanying notes to basic financial statements.
6 397

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Fund Balance of Governmental Fund 155,893$
Deferred outflows of resources 6,356
Net pension liability (49,692)
Deferred outflows of resources 2,848
Deferred inflows of resources (129)
Total OPEB liability (18,283)
Net Position of Governmental Activities 96,993$
Pension-related liabilities applicable to governmental activities arenot due and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts affects only the government-wide statements for governmental activities.

OPEB-related liabilities applicable to governmental activities are notdue and payable in the current period and accordingly are not reported as fund liabilities. Deferred outflows of resources and deferred inflows of resources related to OPEB are only reported in the statement of net position as the changes in these amounts affects only the government-wide statements for governmental activities.

Amounts reported for governmental activities in the statement of net position are different because:

See accompanying notes to basic financial statements.
7 398

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - GOVERNMENTAL FUND
FOR THE YEAR ENDED JUNE 30, 2021

Revenues:

Intergovernmental 187,394$
Interest income (140)
Total Revenues 187,254
Expenditures:

Current:

General government 111,112
Public safety 8,017
Capital outlay 95,340
Total Expenditures 214,469
(Deficiency) of Revenues
(Under) Expenditures (27,215)
Fund Balance at Beginning of Year 183,108
Fund Balance at End of Year 155,893$
See accompanying notes to basic financial statements.
8 399

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF

REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net Change in Fund Balances - Governmental Fund (27,215)$ 108,937
39,809
Change in Net Position of Governmental Activities 121,531$ Pension obligation reduction reported in the statement of activities does not result in the use of current financial resources and, therefore, is not reported as reduction of expenditures in the governmental fund.

OPEB obligation reduction reportedin the statement of activities does not result in the use of current financial resources and, therefore, is not reported as reductionof expenditures in the governmental fund.

Amounts reported for governmental activities in the statement of activities are different because:

See accompanying notes to basic financial statements.
9 400

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2021

Note 1: General

The financial statements are intended to reflect the financial position and changes in the financial position attributable to the Air Pollution Reduction Special Revenue Fund (AQMD) of the City of Orange, California (the City). These financial stat ements are exclusively for AQMD and do not purport to, and do not, present fairly the financial position and changes in the financial position for the City.

Assembly Bill 2766 authorizes the South Coast Air Quality Management District (SCAQMD) to impose an annual vehicle registration fee and to distribute a p ortion of the collected revenues to all local jurisdictions within the South Coast Air Basin. These revenues are to be used solely to reduce air pollution from motor vehicles by implementing new programs and studies necessary for the implementation of the California Clean Air Act.

Note 2: Summary of Signif icant Accounting Policies

a. Description of the Reporting Entity

The accounts of the City are organized on the basis of funds, e ach of which is considered a separate accounting entity with a self-balancing set of accou nts. Monies received under Assembly Bill 2766 are recorded in a Special Revenue Fund, the Air Pollution Reduction Fund, which is used to account for the proceeds of revenue to b e used for the purpose of implementing the California Clean Air Act.

b. Basis of Presentation

The Air Pollution Reduction Fund’s financial statements are pre pared in accordance with accounting principles generally accepted in the United States o f America. The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

The government-wide financial statements (i.e., the statement o f net position and the statement of activities) report information on all of the nonfi duciary activities of the fund.

The AQMD has no fiduciary activities.

Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and oth er items not properly included among program revenues are reported instead as general revenues.

10 401

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021

Note 2: Summary of Significant Accounting Policies (Continued)

The underlying accounting system of the City is organized and o perated on the basis of separate funds, each of which is considered to be a separate ac counting entity. The operations of each fund are accounted for with a separate set o f self-balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as app ropriate. Governmental resource s are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

While separate government-wide and fund financial statements ar e presented, they are interrelated.

c. Measurement Focus, Basis of Accounting and Financial Stateme nt Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting . Under the economic resources measurement focus, all (both current and long term) economic resources and obliga tions are included in the accompanying statement of net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded wh en a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requiremen ts imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus a n d t h e modified accrual basis of accounting . Under the current financial resources measurement focus, only current assets and liabilities are generally included on the balance sheet. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and availabl e. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues relating to grants to be available if they are collect ed within 120 days of the end of the current fiscal period and within 60 days for all other revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

Intergovernmental and interest revenues associated with the cur rent fiscal period are all considered to be susceptible to accrual and have been recognize d as revenues of the current fiscal period. All other revenue items are considered t o be measurable and available only when cash is received by the AQMD.

d. Cash and Investments

Investments are reported in the accompanying financial statemen ts at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . Changes in fair value that occur during a fiscal year are recognized as interest income for that fiscal year. Interest income includes interest earnings, changes in fair value (reali zed/unrealized), gains or losses realized upon the liquidation, maturity or sale of investments and rental income.

Cash and investments are pooled with other City funds for inves tment purposes, with interest being allocated monthly to various funds based on each fund’s prior month -end cash and investment balance.
11 402

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021

Note 2: Summary of Significant Accounting Policies (Continued)

e. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (e xpense/expenditure) until that time. The AQMD has items related to the pension and OPEB p lans that qualify for reporting in this category.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financ ial statement element, deferred inflows of resources, r epresents an acquisition of net position that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time.

The AQMD has items related to the pension and OPEB plans that q ualify for reporting in this category.

f. Net Position Flow Assumption

Sometimes the AQMD will fund outlays for a particular purpose f rom both restricted (e.g., restricted bond or grant proceeds) and unrestricted reso urces. In order to calculate the amounts to report as restric ted net position and unrestrict ed net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the AQMD’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

g. Fund Balance Flow Assumptions

Sometimes the AQMD will fund outlays for a particular purpose f rom both restricted and unrestricted resources (the total of committed, assigned and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned and unassigned fund balance in the governmental fund financial statements, a f low assumption must be made about the order in which the resources are considered to be applied. It is the AQMD’s policy to consider restricted fun d balance to have been deplete d before using any of the components of unrestricted fund balance. Further, when the comp onents of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

h. Fund Equity

In the fund financial statements, government funds report the f ollowing fund balance classification:

Nonspendable includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be m aintained intact. The Air Pollution Reduction Fund did not have a nonspendable fund b alance as of June 30, 2021.
12 403

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021

Note 2: Summary of Significant Accounting Policies (Continued)

Restricted includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed includes amounts that can only be used for specific p urposes pursuant to constraints imposed by formal action of the government’s highes t authority, the City Council. The formal action that is required to be taken to establish, modify or rescind a fund balance commitment is a resolution. The AQMD did not hav e any committed fund balance as of June 30, 2021.

Assigned includes amounts that are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. The AQMD did not have any assigned fund balance as of June 30, 2021.

Unassigned includes the residual amounts that have not been res tricted, committed or assigned to specific purposes. The AQMD did not have any unassi gned fund balance as of June 30, 2021.

i. Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources at the reporting date. Accordingly, actual results could differ from those estimates.

Note 3: Cash and Investments

a. Equity in the Cash and Investment Pool of the City of Orange

The AQMD has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City. The AQMD is a voluntar y participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The AQMD has not adopt ed an investment policy separate from that of the City. The fair value of the AQMD’s in vestment in this pool is reported in the accompanying financial statements at amounts ba sed upon t he AQMD’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting rec ords maintained by the City, which are recorded at the estimated fair value.

b. Disclosures Relating to the Investment Policy, Interest Rate Risk, Credit Risk and Custodial Credit Risk.

Additional disclosures related to the investment policy, intere st rate risk, credit risk and custodial credit risk are available in the City of Orange’s Annual Comprehensive Financial Report.

13 404

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021

Note 3: Cash and Investments (Continued)

c. Fair Value Measurements

The AQMD categorizes its fair value measurement within the fair v a l u e h i e r a r c h y established by accounting principles generally accepted in the United States of America.

The hierarchy is based on the relative inputs used to measure t he fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The AQMD’s investment in the City investment pool is not subjec t to the fair value hierarchy.

Note 4: Retirement Plan

a. Plan Description, Benefits Provided and Employees Covered

The City contributes to the California Public Employees’ Retire ment System (CalPERS), an agent multiple-employer public employee defined benefit pens ion plan (the Plan).

CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and their beneficiaries. CalPERS a c t s a s a c o m m o n investment and administrative agent for participating public en tities within the State of California. Benefit provision and all other requirements are established by state statute and memoranda of understanding with employee bargaining units. A fu ll description of the pension plan regarding the number of employees covered, benefit provisions, assumptions (for funding, but no accounting purposes) and membership inform ation is listed in the CalPERS June 30, 2019. Valuation Report. Details on the benefit s provided can be obtained in Appendix B of the Actuarial Valuation Report. This report and CalPERS’s audited financial statements are publicly available reports tha t can be obtained at the CalPERS’s website under Employers. Also, for accounting purpose s , t h e G A S B 6 8 Accounting Valuation Report is available for the City of Orange Miscellaneous Plan as of the measurement date June 30, 2020. This report is available from the City.

The plan provides benefits for two membership classifications, Miscellaneous and Safety, and those benefits are tiered based upon the date of CalPERS me mbership. Safety membership is extended to those in active law enforcement and fire suppression, while all others are classified as Miscellaneous members. Assembly Bill ( AB) 340, also known as the Public Employees’ Pension Reform Act (PEPRA), created new b enefit formulas and a final compensation period, as well as new contribution requirem ents for new employees.

For the purpose of PEPRA, “new employees” are those hired on or after January 1, 2013 and had never been a member of CalPERS previously. CalPERS refe rs to members prior to January 1, 2013 as classic members.

City employees involved with the AQMD program are covered under t h e C i t y ’ s Miscellaneous Plan. As such, related pension balances and activities have been allocated proportionately to the AQMD in relation to salaries paid. Addit ional details related to the pension plans deferred outflows , deferred inflows, net pension liability, and required supplementary information can be found in the City’s Annual Comprehensive Financial Report for the year ended June 30, 2021.

14 405

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

NOTES TO THE BASIC FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021

Note 5: Other Post Employment Benefits (OPEB)

a. Plan Description, Benefits Provided

The City administers an agent multiple-employer defined benefit post-employment healthcare plan for eligible City retirees and their dependents through California Public Employees’ Retirement System (CalPERS). Retirees from the City enrolled in the Public Employees Medical and Hospital Insurance Program (PEMHCA), is a n agent multiple-employer postemployment benefits plan through CalPERS, are eligible for these benefits.

These health insurance benefits are authorized through City resolution/memoranda’ s of understanding defining health ca re benefits and contribution le v e l s a n d t h r o u g h t h e contractual agreement between the City and CalPERS. The City c urrently contributes $139 per month for each retiree and the retiree is responsible for the balance of the premium amount.

City employees involved with the AQMD program are covered under the City’s OPEB plan as such, related OPEB balances and activities have been allocat ed proportionately to the AQMD in relation to salaries paid. Additional details related t o the OPEB plans deferred outflows, deferred inflows, total OPEB liability, and required supplementary information can be found in the City’s Annual Financial Comprehensive Report for the year ended June 30, 2021.

Note 6: Availability of other Information

Copies of separate progress reports filed with the SCAQMD Board of Directors, which detail the accomplishments during the fiscal year ended June 30, 2021, are available at the Orange City Hall.

Note 7: Subsequent Events

In preparing these financial stat ements, the City has evaluated events and transactions for potential recognition or disclosure through December 13, 2021, the date the financial statements were available to be issued.

15 406

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 183,108$ 183,108 $ 183,108 $ -$ Resources (Inflows):

Intergovernmental 185,150 185,150 187,394 2,244 Investment income 915 915 (140) (1,055) Amounts Available for Appropriation 369,173 369,173 370,362 1,189 Charges to Appropriation (Outflow):

Salaries and benefits 51,076 51,076 57,128 (6,052) Capital projects 100,000 102,242 95,340 6,902 Trip reduction program 54,079 54,079 45,762 8,317 Professional costs 7,600 7,600 2,124 5,476 Printing costs 2,700 2,700 - 2,700 Bike team usage 10,000 10,000 8,017 1,983 Association dues 700 700 - 700 Training costs 900 900 - 900 Administrative and general overhead 6,098 6,098 6,098 - Total Charges to Appropriations 233,153 235,395 214,469 20,926 Budgetary Fund Balance, June 30 136,020$ 133,778$ 155,893$ 22,115$ See accompanying note to required supplementary information. 16 407

CITY OF ORANGE

AIR POLLUTION REDUCTION FUND

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021

Note 1: Budgetary Accounting

The budget for the Air Pollution Reduction Special Revenue Fund is formally adopted annually and is prepared in accordance with accounting principles generally accepted in the United States of America. The budget is monitored to ensure compliance with legal provisions embodied in the appropriated budget as approved or amended by the City Council throughout the year. Department heads are responsible for monitoring their depa rtment’s appropriated budget. The legal level of budgetary control is at the fund lev el. The City’s management may transfer resources between operating line items within a depart ment in the same fund as they see appropriate. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as restriction of fund balance since they do not constitute expenditures or liabilities.

17 408
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Orange, California
We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contai ned in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the Air Pollution Reduction Fund (the “Fund”), a special re venue fund of the City of Orange, California (the “City”), as of and for the year ended June 30, 2021, and the related n otes to the financial statements, which collectively comprise the Fund’s basic financial statements, and have issued our report thereon dated December 13, 2021.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statement s, we considered the City’s internal control over the Fund’s financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effecti veness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility t hat a material misstatement of the entity’s financial statements will not be prevented or detected and corre cted on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpo se described in the first paragraph of this section and was not designed to identify all deficiencies in in ternal control that might be material weaknesses or, significant deficiencies. Given these limitation s, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund’s financial statements are free from material misstatement, we performed tests of its compliance wit h applicable provisions of Assembly Bill 2766, Chapter 1705 (Health and Safety Code Sections 44220 through 44247) and certain provisions of laws, regulations, contracts, an d grant agreements, noncomplian ce with which could have a direct and material effect on the Fund’s financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed n o instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 409
To the Honorable Mayor and Members of the City Council
City of Orange, California

Purpose of this Report

The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Cit y’s internal control or on compliance. This report is an integral p art of an audit performed in accordance with Government Auditing Standards in considering the City ’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
December 13, 2021

19 410

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of the City Council
City of Orange, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Orange, California, (the “City”) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 13, 2021.

Internal Control over Financial Reporting

In planning and performing our a udit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the fi nancial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility th at a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with govern ance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not iden tify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Housing S uccessor’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed the following instance of noncompliance or other matters that are required to be reported under Government Auditing Standards: 2021-001. This matter is described in the accompanying schedule of findings and questioned costs.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 411

To the Honorable Mayor and Members of the City Council
City of Orange, California

City’s Response to Findings

The City’s response to the findings identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on co mpliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
December 13, 2021

412

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

Late Submission of Annual Progress Report

Reference Number: 2021-001

Evaluation of Finding:

Noncompliance

Criteria:

Senate Bill 341 (SB 341) requires all successor housing entities to comply with annual report requirements.

One requirement is for the City to report housing financial and activity information by including specified information wit h the Annual Progress Report (APR) required to be annually submitted to the Department of Housing and Community Development (HCD) by April 1 of the subsequent year pursuant to the State of California housing law in reporting progress in implementing the housing element.

Condition:

As part of our audit procedures, we noted that the APR for the fiscal year ended June 30, 2020 was submitted to HCD on May 18, 2021.

Cause of Condition:

The City’s ability to submit the APR timely, was due to the City’ efforts to pass an additional dwelling unit ordinance during the first quarter of the year, and the considerable amount of staff time required in those efforts. There were also staffing shortages in the City’s Community Development Department.

Effect or Potential Effect of Condition:

The effect is unknown.

Recommendation:

The City should implement policies and procedures to ensure timely reporting of the APR to HCD by April first of the subsequent year.

Management’s Response and Corrective Action:

The City has assigned a specific staff member to this report, with the deadline scheduled for the responsible department. Based on available staff resources, the filing will remain an action item and the intent is to submit it by the deadline.

413

CITY OF ORANGE HOUSING SUCCESSOR

CITY OF ORANGE, CALIFORNIA

FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2021
PREPARED BY: FINANCE DEPARTMENT
William M. Kolbow, Administrative Services Director
414

ORANGE HOUSING SUCCESSOR
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT Page No.

Financial Audit ........................................................................................................................ 1 Compliance Audit .................................................................................................................... 4

BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:

Statement of Net Position ............................................................................................. 7 Statement of Activities ................................................................................................. 8 Fund Financial Statements:

Balance Sheet - Governmental Funds ........................................................................... 9 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................. 10 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ................................................................................. 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ............................................................................................... 12 Notes to Financial Statements ........................................................................................... 13

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule ...................................................................................... 20 Notes to Required Supplementary Information ................................................................. 21

OTHER SUPPLEMENTARY INFORMATION
Computation of Low and Moderate Income Housing Funds Excess/Surplus ..................... 22 415

INDEPENDENT AUDITORS’ REPORT

To the Honorable Mayor and Members of the City Council
City of Orange, California

Report on the Financial Statements

Opinions

We have audited the accompanying financial statement s of the governmental activities and the City of Orange Housing Successor Special Revenue Fund (the Housing Successor), a major fund of the City of Orange, California (the City) as of and for the year ended June 30, 2021, and the related notes to the financial sta tements, which collectively comprise the Housing Successor’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the Hous ing Successor Special Revenue Fund of the City as of June 30, 2021, and the re spective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the U nited States. Our responsibilities under t hose standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter

As discussed in Note 1 to the financial statements, the financial statements present only the Housing Successor and do not purport to, and do not, present fairly the financial position of the City as a whole, as of June 30, 2021, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal c ontrol relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are condition s or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the date of the financial statements.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 416

To the Honorable Mayor and Members of the City Council
City of Orange, California

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a materia l misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, there is a su bstantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of signifi cant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

Other Reporting Responsibilities

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the budgetary comparison schedule as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and , although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the requ ired supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 417

To the Honorable Mayor and Members of the City Council
City of Orange, California

Management has omitted the management’s discussion and analysis, schedule of proportionate share of net pension liability, schedule of plan contributions, and the schedule of changes in total OPEB liability and related ratios that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential p art of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated December 13, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s int ernal control over financial reporting and compliance.

Brea, California
December 13, 2021

418

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE ON COMPLIANCE WITH

APPLICABLE REQUIREMENT AND ON INTERNAL CONTROL OVER COMPLIANCE

To the Honorable Mayor and Members of the City Council
City of Orange, California

Report on Compliance for Housing Successor

Opinion

We have audited the City of Orange Housing Successor (the Housing Successor) of the City of Orange, California’s (the City), compliance with the types of compliance requirements described in the California Health and Safety Code section applicable to California Housing Successor Agencies for the year ended June 30, 2021.

In our opinion, the Housing Successor complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its Housing Successor for the year ended June 30, 2021.

Basis for Opinion

We conducted our audit of compliance in accordance with auditing standards g enerally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of California Health and Safety Code sections applicable to California Housing Successor Agencies. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the Housing Successor and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the Housing Successor’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance

Management is responsible for compliance with the requirement s referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts applicable to the Housing Successor programs.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 419

To the Honorable Mayor and Members of the City Council
City of Orange, California

Auditor’s Responsibilities for the Audit of Compliance

Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above, whether due to fraud or error, and express an opinion on the Housing Successor’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the California Health and Safety Code sections applicable to California Housing Successor Agencies will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influ ence the judgment made by a reasonable user of the report on compliance about the Housing Successor’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and California Health and Safety Code sections applicable to California Housing Successor Agencies , we:

• Exercise professional judgment and maintain professional skepticism throughout the audit.

• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Housing Successor’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.

• Obtain an understanding of the Housing Successor’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circu mstances and to test and report on internal control over compliance in accordance with California Health and Safety Code sections applicable to California Housing Successor Agencies , but not for the purpose of expressing an opinion on the effectiveness of the Housing Successor’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
420

To the Honorable Mayor and Members of the City Council
City of Orange, California

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be a material weakness, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Report on Excess/Surplus Calculation

We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended December 13, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 13 , 2021, which contained unmodified opinions on those financial statements. Our audit was c onducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying report on excess/surplus calculation is presented for purposes of additional analysis as required by the California Health and Safety Code sections applicable to California Housing Successor Agencies and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards ge nerally accepted in the United States of America. In our opinion, the report on excess/surplus calculation is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the California Health and Safety Code sections applicable to California Housing Successor Agenci es.

Accordingly, this report is not suitable for any other purpose.

Brea, California
December 13, 2021

421

CITY OF ORANGE HOUSING SUCCESSOR

STATEMENT OF NET POSITION
Governmental
Activities
ASSETS:

Pooled cash and investments 2,594,041$
Receivables:

Notes and loans (net of allowance for net present value) 18,618,277 Accrued interest 2,247
Accounts 25
Total Assets 21,214,590
DEFERRED OUTFLOWS OF RESOURCES:

Deferred pension related items 49,319
Deferred other post employment benefits 31,337
Total Deferred Outflows of Resources 80,656
LIABILITIES:

Noncurrent liabilities:

Net pension liability 385,558
Total Other post employment benefits 160,307
Total Liabilities 545,865
DEFERRED INFLOWS OF RESOURCES:

Deferred pension related items 1
Deferred other post employment benefits 917
Total Deferred Inflows of Resources 918
NET POSITION:

Unrestricted 20,748,463
Total Net Position 20,748,463$
JUNE 30, 2021
See Notes to Financial Statements
422

CITY OF ORANGE HOUSING SUCCESSOR

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Governmental Activities:

General government 28,729$ - - - (28,729)
Community development 60,901 - - - (60,901)
Economic development 45,806 - - - (45,806)
Total Governmental Activities 135,436$ - - - (135,436)
Total Primary Government 135,436$ - - - (135,436)
General Revenues:

Use of money and property 677,635
Miscellaneous Income 352,988
Total General Revenues 1,030,623
Change in Net Position 895,187
Net Position at Beginning of Year 19,853,276
Net Position at End of Year 20,748,463$
Program Revenues
Net (Expenses)
Revenues and
Changes in Net
Position
See Notes to Financial Statements
423

CITY OF ORANGE HOUSING SUCCESSOR

BALANCE SHEET

GOVERNMENTAL FUND
JUNE 30, 2021
ASSETS:

Pooled cash and investments 2,594,041$
Receivables:

Notes and loans (net of allowance for net present value) 18,618,277 Accrued interest 2,247
Accounts 25
Total Assets 21,214,590
FUND BALANCE:

Restricted 21,214,590
Total Fund Balance 21,214,590$
See Notes to Financial Statements
424

CITY OF ORANGE HOUSING SUCCESSOR

RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUND

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Fund balance of governmental fund 21,214,590$
Amounts reported for governmental activities in the statement of net position are different because:

Pension/OPEB related debt applicable to the governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities.

Deferred outflows of resources and deferred inflows of resources related to pensions/OPEB are only reported in the Statement of Net Position as the changes in these amounts affect only the government-wide statements for governmental activities.

Deferred outflows of resources - pension 49,319
Deferred outflows of resources - OPEB 31,337
Deferred inflows of resources - pension (1)
Deferred inflows of resources - OPEB (917)
Pension liability (385,558)
Total OPEB Liability (160,307)
Net Position of governmental activities 20,748,463$
See Notes to Financial Statements
425

CITY OF ORANGE HOUSING SUCCESSOR

STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUND
YEAR ENDED JUNE 30, 2021
REVENUES:

Use of money and property 677,635$
Miscellaneous Income 352,988
Total Revenues 1,030,623
EXPENDITURES:

Current:

General government 28,729
Community development 60,901
Economic development 32,550
Total Expenditures 122,180
Net Change in Fund Balance 908,443
Fund Balance, Beginning of Year 20,306,147
Fund Balance, End of Year 21,214,590$
See Notes to Financial Statements
426

CITY OF ORANGE HOUSING SUCCESSOR

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUND

TO THE STATEMENT OF ACTIVITIES
JUNE 30, 2021
Net change in fund balance - governmental fund 908,443$ Other post employment benefits expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in government funds. (9,120)
Pension obligation expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (4,136) Net change in net position of governmental activities 895,187$ See Notes to Financial Statements
427
Note 1: Significant Accounting Policies
a. Financial Reporting Entity
The Orange Successor Housing Agency (Housing Successor) was established on February 1, 2012, pursuant to the dissolution of the former Redevelopment Agency.

Prior to that, the activities were accounted for in the Redevelopment Agency Housing Fund. The City Council became the governing board of the Housing Successor. The Housing Successor was formed for purposes of construction and management of quality affordable housing within the City.

The Housing Successor is controlled by the City of Orange (City) and, accordingly, the accompanying fund financial statements are included as a special revenue fund of the basic financial statements prepared by the City. The accompanying financial statements are intended to reflect the financial position of operations for the Housing Successor Fund only and do not purport to, and do not, present the financial position of the City of Orange, California. Separate financial statements are prepared for the City of Orange, and may be obtained from the City. b. Basis of Presentation
The Housing Successor’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the fund. The Housing Successor has no fiduciary activities.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

While separate government-wide and fund financial statements are presented, they are interrelated.
428

CITY OF ORANGE HOUSING SUCCESSOR

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Note 1: Significant Accounting Policies (Continued)
c. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic resources measurement focus, all (both current and long term) economic resources and obligations are included in the accompanying Statement of Net Position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets and liabilities are generally included on the balance sheet. Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Housing Successor considers revenues relating to grants to be available if they are collected within 120 days of the end of the current fiscal period, and within 60 days for all other revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

Use of money and property is considered to be measurable and available only when cash is received by the government.
d. Assets, Liabilities and Net Position or Equity
Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as use of money and property for that fiscal year. Use of money and property includes interest earnings, changes in fair value (realized/unrealized), gains or losses realized upon the liquidation, maturity, or sale of investments, and rental income.

Cash and investments are pooled with other City of Orange funds for investment purposes, with interest being allocated monthly to various funds based on each fund’s prior month-end cash and investment balance. Interest income for cash and investments excluded from pooled cash is credited directly 429

CITY OF ORANGE HOUSING SUCCESSOR

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Note 1: Significant Accounting Policies (Continued)
to the related funds. Investment policies applicable to all the Housing Successor’s funds are those of the City of Orange and are included in the notes to the City’s basic financial statements.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until that time. The Housing Successor has items related to the pension and OPEB plans that qualify for reporting in this category.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred of inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Housing Successor has items related to the pension and OPEB plans that qualify for reporting in this category.

Net Position Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Housing Successor’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Fund Balance Flow Assumptions
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Housing Successor’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.

Unassigned fund balance is applied last.
430

CITY OF ORANGE HOUSING SUCCESSOR

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Note 1: Significant Accounting Policies (Continued)
Fund Equity
In the fund financial statements, government funds report the following fund balance classification:

Non-spendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution. The Housing Successor did not have any committed fund balance as of June 30, 2021.

Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The Housing Successor did not have any assigned fund balance as of June 30, 2021.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes.

Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and deferred inflow/outflows of resources at the reporting date and revenue and expenses during the reporting period. Actual results could differ from those estimates.

Loans Receivable
Non-current portions of long-term receivables due are reported on the Governmental and Government-wide financial statements. For loans that have a forgiveness component and/or repayment term greater than that of conventional loans, an allowance is recorded to more accurately present the net present value of these receivables.
431

CITY OF ORANGE HOUSING SUCCESSOR

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Note 2: Cash and Investments
As of June 30, 2021, cash and investments were reported in the accompanying financial statements as follows:

Equity in City investment pool 2,594,041$
Total cash and investments 2,594,041$
a. Equity in the Cash and Investment Pool of the City of Orange The Housing Successor has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City of Orange. The Housing Successor is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City of Orange. The Housing Successor has not adopted an investment policy separate from that of the City of Orange. The fair value of the Housing Successor’s investment in the pool is reported in the accompanying financial statements at amounts based upon the Housing Successor’s pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded at the estimated fair value.
b. Disclosures Relating to the Investment Policy, Interest Rate Risk and Custodial Credit Risk
Additional disclosures related to the investment policy, interest rate risk, credit risk and custodial credit risk are available in the City of Orange’s Comprehensive Annual Financial Report.
c. Fair Value Measurements
The Housing Successor categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the relative inputs used to measure the fair value of the investments. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The Housing Successor’s investment in the City investment pool is not subject to the fair value hierarchy.
432

CITY OF ORANGE HOUSING SUCCESSOR

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Note 3: Loans Receivable
With the dissolution of the Redevelopment Agency effective February 1, 2012, the City Council adopted a resolution authorizing the City of Orange to become the Housing Successor and enabling the City to retain housing assets and functions of the Redevelopment Agency. The Housing Successor provides housing loans for the rehabilitation and expansion of housing for low and moderate-income families in the City. Housing rehabilitation loans are for the purpose of rehabilitation and upgrading existing housing due to structural deficiencies. Housing loans also assist in the construction of new multi-family housing projects or rehabilitation of existing multi-family units. The balance of the loan at June 30, 2021, net of allowance for net present value, is $18,618,277.

Additionally, the former Redevelopment Agency issued several promissory notes, pursuant to and in implementation of the “Affordable Housing Resale Restrictions Option to Designate Eligible Purchaser with Alternative Option to Purchase and Option to Purchase upon Default.” These notes do not actually represent cash paid to the borrowers, but represent the subsidy constructively received by the borrower as a result of borrowers’ purchase of the property at a price below its fair market value. No repayment of these notes is due by the borrower until the Affordable Term of the loan date (45 years commencing from the loan date), or upon default, as described in the note. As of June 30, 2021, the outstanding amount for these loans was $465,000. Due to the length of the deferral and the uncertainty of repayment on these loans, an allowance has been recorded for the full amount of the loan receivable.

Note 4: Retirement Plan
a. Plan Description, Benefits Provided and Employees Covered The City contributes to the California Public Employees' Retirement System (CalPERS), an agent multiple-employer public employee defined benefit pension plan (the Plan). CalPERS provides retirement and disability benefits, annual cost- of-living adjustments, and death benefits to plan members and their beneficiaries.

CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and memoranda of understanding with employee bargaining units. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the CalPERS June 30, 2016 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Employers. Additional information can be found in the City’s Comprehensive Annual Financial Report for the Year Ended June 30, 2021.
433

CITY OF ORANGE HOUSING SUCCESSOR

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
Note 4: Retirement Plan (continued)
The Plan provides benefits for two membership classifications, Miscellaneous and Safety, and those benefits are tiered based upon date of CalPERS membership.

Safety membership is extended to those in active law enforcement and fire suppression, while all others are classified as Miscellaneous members. Assembly Bill (AB) 340, also known as the Public Employees’ Pension Reform Act (PEPRA), created new benefit formulas and a final compensation period as well as new contribution requirements for new employees. For the purpose of PEPRA, “new employees” are those hired on or after January 1, 2013, and had never been a member of CalPERS previously. CalPERS refers to members prior to January 1, 2013, as Classic members.

Employees of the City of Orange Housing Successor are covered under the Miscellaneous Plan. Further details of the City of Orange Retirement Plans can be found in the City’s Comprehensive Annual Financial Report for the Year Ended June 30, 2021.

The City allocates a percentage of the GASB 68 net pension liability, deferred outflows, deferred inflows, and required supplementary information to the Housing Successor based on its pro rata share of the actual employer pension cost to the City.

Note 5: Other Post Employment Benefits (OPEB)
The City administers an Agent Multiple-Employer defined benefit post- employment healthcare plan for eligible City retirees and their dependents through the California Public Employees' Retirement System (CalPERS). Retirees from the City enrolled in the Public Employees Medical and Hospital Insurance Program (PEMHCA), a single-employer postemployment benefits plan through CalPERS, are eligible for these benefits. These health insurance benefits are authorized through City Resolutions/Memorandas of Understanding defining health care benefits and contribution levels and through the contractual agreement between the City and CalPERS. The City currently contributes $139 per month for each retiree and the retiree is responsible for the balance of the premium amount.

The City allocates a percentage of the GASB 75 OPEB total liability, deferred outflows and inflows, and required supplementary information to the Housing Successor based on its pro rata share determined by an actuarial valuation annually.

Note 6: Subsequent Event
In preparing these financial statements, the Housing Successor has evaluated events and transactions for potential recognition or disclosure through December 13, 2021, the date the financial statements were available to be issued. No events or transactions were identified that required recognition or disclosure. 434

CITY OF ORANGE HOUSING SUCCESSOR

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Use of money and property 105,798$ 105,798 677,635 571,837 Miscellaneous Income - - 352,988 352,988
Total Revenues 105,798 105,798 1,030,623 924,825
EXPENDITURES:

Current:

General government
City manager 146 146 146 -
Finance 27,876 27,876 28,583 (707)
Community development 60,684 60,684 60,901 (217)
Economic development 32,558 1,282,558 32,550 1,250,008
Total Expenditures 121,264 1,371,264 122,180 1,249,084
Net Change in Fund Balance (15,466) (1,265,466) 908,443 2,173,909 Fund Balance, Beginning of Year 19,977,968 19,727,968 20,306,147 578,179 Fund Balance End of Year 19,962,502$ 18,462,502$ 21,214,590$ 2,752,088$ - -
Budgetary Amounts
435

CITY OF ORANGE HOUSING SUCCESSOR

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2020
Budgetary Accounting
Annual budgets are adopted by July 1 of each year on a basis consistent with generally accepted accounting principles for all governmental funds. The budget is monitored to ensure compliance with legal provisions embodied in the appropriated budget as approved or amended by the City Council throughout the year. Department heads are responsible for monitoring their department’s appropriated budget.

Legal level of Control – The legal level of budgetary control is at the department level within each fund. Transfers of appropriations between funds, between departments within a fund, and between capital outlay or debt service and another object group classification within a department, require City Council approval. All other transfers of appropriations can be made with City management approval.
436

CITY OF ORANGE HOUSING SUCCESSOR

COMPUTATION OF LOW AND MODERATE

INCOME HOUSING FUND

EXCESS/SURPLUS
Opening Fund Balance 21,214,590$
Less Unavailable Amounts:

Loans receivable (18,618,277)$
(18,618,277)
Available Low and Moderate Income Housing Funds 2,596,313 Limitation (greater of $1,000,000 or four years set-aside) Set-Aside for last four years:
2020 - 2021 1,030,623
2019 - 2020 707,554
2018 - 2019 275,177
2017 - 2018 306,987
Total 2,320,341$
Base Limitation 1,000,000$
Greater amount 2,320,341
Computed Excess/Surplus 275,972$ A
Low and Moderate
Housing Funds
All Project Area
A. An Excess Surplus was developed for fiscal year ended June 30, 2021. According to HSC 34176.1(d) if a housing successor has an excess surplus, the housing successor shall encumber the excess surplus for the purposes as described in 34176.1 paragraph (3) of subdivision (a), or transfer these funds pursuant to 34176.1 paragraph (2), within three fiscal years, currently by June 30, 2024. If the housing successor fails to comply within this subdivision, the housing successor, within 90 days of the end of the third fiscal year, shall transfer any excess surplus to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna Jr. Farmworker Housing Grant Program.

July 1, 2021
437

CITY OF ORANGE, CALIFORNIA
JUNE 30, 2021 SINGLE AUDIT REPORT
438

CITY OF ORANGE, CALIFORNIA

SINGLE AUDIT REPORT

JUNE 30, 2021
439

CITY OF ORANGE, CALIFORNIA

SINGLE AUDIT REPORT
JUNE 30, 2021

TABLE OF CONTENTS
Page

Number
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................................................... 1 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........................................................................................ 3 Schedule of Expenditures of Federal Awards for the
Fiscal Year Ended June 30, 2021 ........................................................................................................ 6 Notes to the Schedule of Expenditures of Federal Awards .................................................................... 8 Schedule of Findings and Questioned Costs for the
Fiscal Year Ended June 30, 2021 ........................................................................................................ 9 Summary Schedule of Prior Year Findings and Questioned Costs for the Fiscal Year Ended June 30, 2020 ...................................................................................................... 11 440
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Orange, California
We have audited, in accordance with the auditing standards gene rally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Orange, California, (the “City”) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Ci t y ’ s b a s i c f i n a n c i a l s t a t e m e n t s , a n d h a v e issued our report thereon dated December 13, 2021.

Internal Control over Financial Reporting
In planning and performing our a udit of the financial statements, we considered the City’s inte rnal control over financial reporting (inter nal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility t hat a material misstatement of the entity’s financial statements will not be prevented or detected and corr ected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Hou sing Successor’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance wit h which could have a direct and material effect on financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express s uch an opinion. The results of our tests disclosed the following instance of noncompliance or other matt ers that are required to be reported under Government Auditing Standards: 2021-001. This matter is described in the accompanying schedule of findings and questioned costs.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 441
To the
Honorable Mayor and Members of the City Council
City of Orange, California
City’s Response to Findings
The City’s response to the findi ngs identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit p erformed in accordance with Government Auditing Standards in considering the Cit y’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Brea, California
December 13, 2021
2 442
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON SCHEDULE OF

EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Members of the City Council
City of Orange, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Orange, California (the “City”)’s compliance wi th the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City ’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City, complied, in all material respects, w ith the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.

Basis for Opinion
We conducted our audit of compliance in accordance with auditin g standards generally accepted in the United States of America (GAAS); the standards applicable to fin ancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and t he audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s government programs.

203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 443
To the
Honorable Mayor and Members of the City Council
City of Orange, California
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conduc ted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompl iance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compli ance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the government program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards , and Uniform Guidance, we:
x Exercise professional judgment and maintain professional skept icism throughout the audit. x Identify and assess the risks of material noncompliance, wheth er due to fraud or error, and design and perform audit procedures responsive to those risks. Such p rocedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. x Obtain an understanding of the C ity’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumst ances and to test and report on internal control over compliance in accordance with Uniform Gui dance, but not for the purpose of expressing an opinion on the effectiveness of the City’s intern a l c o n t r o l o v e r c o m p l i a n c e.

Accordingly, no such opinion is expressed.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow manage ment or employees, in the norma l course of performing their assigned functions, to prevent, or detect and correct, noncompliance wit h a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over comp liance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for t he limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be a material weakness, as defined above. However, material weaknesses or significant deficiencie s in internal control over compliance may exist that have not been identified.
4 444

To the Honorable Mayor and Members of the City Council
City of Orange, California

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2021, and the related notes to the financial statement s, which collectively comprise the City ’s basic financial statements. We issued our report thereon dated December 13, 2021, which contained unmodified opinions on those financial statements. Our audit wa s conducted for the purpose of forming opinions on the financial statem ents that collectively comprise t h e b a s i c f i n a n c i a l s t a t e m e n t s . T h e accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financia l statements. The information has been subjected to the auditing procedures applied in the audit of th e financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that tes ting based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Brea, California
December 13, 2021

5 445

CITY OF ORANGE, CALIFORNIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Assistance
Listing Pass-Through Entity Total Federal
Number Identifying Number Expenditures
CDBG - Entitlement Grants Cluster
Department of Housing and Urban Development:

Direct Programs:

Community Development Block Grants/Entitlement Grants 14.218 N/A 1,689,887$ COVID-19 - Community Development Block Grants/Entitlement Grant s 14.218 N/A 405,429 Subtotal - CFDA 14.218 2,095,316
Total Department of Housing and Urban Development Programs in Cluster 2,095,316 Total CDBG - Entitlement Grants Cluster 2,095,316
Highway Planning and Construction Cluster *
Department of Transportation:

Passed through the State of California Department of Transporta tion (CalTrans):

Highway Planning and Construction 20.205 94-900-7744 919,680 Total Department of Transportation Programs in Cluster 919,680 Total Highway Planning and Construction Cluster 919,680 Highway Safety Cluster
Department of Transportation:

Passed through the State of California Office of Traffic Safety:

State and Community Highway Safety 20.600 80-824-4842 98,495 Minimum Penalties for Repeat Offenders for Driving While Intoxi cated 20.608 80-824-4842 185,204 National Priority Safety Programs 20.616 80-824-4842 24,800 Total Department of Transportation Programs in Cluster 308,499 Total Highway Safety Cluster 308,499
Other Programs
Department of Housing and Urban Development:

Direct Programs:

Home Investment Partnerships Program 14.239 N/A 37,390
Total Department of Housing and Urban Development 37,390 Department of Justice:

Direct Programs:

Equitable Sharing Program 16.922 N/A 371,674
Passed through the County of Orange:

COVID-19 - Coronavirus Emergency Supplemental Funding Program 16.034 00-965-7602 28,062 Tobacco Grant Program 16.U01 00-965-7602 31,456
Total Department of Justice 431,192
Department of the Treasury:

Direct Programs:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds * 21.027 N/A 14,009,094 Passed through the State of California:

COVID-19 - Coronavirus Relief Fund * 21.019 80-748-7608 4,600,498 Passed through the County of Orange:

COVID-19 - Coronavirus Relief Fund * 21.019 00-965-7602 229,811 Subtotal - 21.019 4,830,309
Total Department of Housing and Urban Development Programs 18,839,403 Department of Homeland Security:

Passed through the County of Orange:

Emergency Management Performance Grants 97.042 00-965-7602 809 Total Department of Homeland Security 809
Total Other Programs 19,308,794
Total Expenditures of Federal Awards 22,632,289$
Grantor/Program or Cluster Title
Federal Grantor/Pass-Through
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 6 446

CITY OF ORANGE, CALIFORNIA

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Assistance
Listing Total Federal
Number Expenditures
COVID-19 - Community Development Block Grants/Entitlement Grant s 14.218 405,429 $ COVID-19 - Coronavirus Emergency Supplemental Funding Program 16 .034 28,062 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds * 2 1.027 14,009,094 COVID-19 - Coronavirus Relief Fund * 21.019 4,830,309
Total Coronavirus Emergency Acts Funding 19,272,894$
* Major Program
1 There was no federal awards expended in the form of noncas h assistance and insurance in effect during the year. 2 No amounts were passed through to subrecipients during the year.

CORONAVIRUS EMERGENCY ACTS FUNDING RECONCILIATION
Program or Cluster Title
The notes to the schedule of expenditures of federal awards are an integral part of this schedule. 7 447

CITY OF ORANGE, CALIFORNIA

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2021
Note 1:

Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (th e Schedule) includes the federal award activity of the City of Orange (the City) under programs of the federal government as well as federal financial assistance passed through other government agencies for the year ended June 30, 2021. The information in this Schedule is presen ted in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Because the Schedule presents only a selected portion of the op erations of the City, it is not intended to and does not present the financial statements of the City. The City’s reporting entity is defined in Note 1 of the notes to the City’s financial statements.

Note 2: Summary of Significant Accounting Policies
Expenditures reported on the Sch edule are reported using the mo dified accrual basis of accounting for governmental funds and the accrual basis for pro prietary funds, which is described in Note 1 of the notes to the City’s financial statem ents. Such expenditures are recognized following the cost principles contained in the Unifo rm Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Note 3: Indirect Cost Rate
The City has elected not to use the 10% de minimis indirect cos t rate allowed under the Uniform Guidance.

Note 4: Contingencies
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for re imbursement to the grantor agencies.
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CITY OF ORANGE, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SECTION I - SUMMARY OF AUDITORS' RESULTS
Financial Statements
Type of a
uditors' report issued: Unmodified Opinion
Internal control over financial reporting:
x Material weaknesses identified? yes X no x
Significant deficiencies identified? yes X none r eported Noncom
pliance material to financial
statements noted? X yes no
Federa
l Awards
Interna
l control over major programs:
x Significant deficiencies identified? yes X no x
Material weaknesses identified? yes X none reported Type of a
uditors' report issued on compliance for major programs: Unmodified Opinion Any audit findings disclosed that are required to be
reported in accordance with Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform
Guidance)? yes X no
Ident
ification of major programs:

Assistance Listing Number(s) Name of Federal Program or Cluster

20.2 05 Highway Planning and Construction Cluster

21.027 Coronavirus State and Local Fiscal Recovery Funds

21.019 Coronavirus Relief Fund
Dollar threshold used to distinguish
between type A and type B program $750,000
Auditee qualified as low-risk auditee? X yes no 9 449

CITY OF ORANGE, CALIFORNIA

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2021

SECTION II - FINANCIAL STATEMENT FINDINGS
Reference Number: 2021-001
Evaluation of Finding:

Noncompliance
Criteria:

Senate Bill 341 (SB 341) requires all successor housing entities to comply with annual report requirements.

One requirement is for the City to report housing financial and activity information by including specified information with the Annual Progress Report (APR) required to b e annually submitted to the Department of Housing and Community Development (HCD) by April 1 of the subsequent year pursuant to the State of California housing law in reporting progress in implementing the housing element.

Condition:

As part of our audit procedures, we noted that the APR for the fiscal year ended June 30, 2020, was submitted to HCD on May 18, 2021.

Cause of Condition:

The City’s ability to submit the APR timely, was due to the Cit y’ efforts to pass an additional dwelling unit ordinance during the first quarter of the year, and the conside rable amount of staff time required in those efforts. There were also staffing shortages in the City’s Community Development Department.

Effect or Potential Effect of Condition:

The effect is unknown.

Recommendation:

The City should implement policies and procedures to ensure timely reporting of the APR to HCD by April first of the subsequent year.

Management’s Response and Corrective Action:

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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Agenda Item
City Council
Item #: 4.1. 1/11/2022 File #: 22-0004
TO: Members of the City Council
FROM: Mayor Mark A. Murphy

1. SUBJECT
Consideration of appointment of City Councilmembers to City Regional Boards and Committees.

2. SUMMARY
Consider appointments as recommended by the Mayor. All terms are for one year or at the discretion of the Mayor unless otherwise noted.

3. RECOMMENDED ACTION
Confirm Mayor Murphy’srecommendations of appointments of City Councilmembers to City regional boards and committees.

4. ATTACHMENTS
· Proposed Council appointments to City Regional Boards and Committees City of Orange Printed on 1/6/2022Page 1 of 1
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Agenda Item
City Council
Item #: 4.1. 1/11/2022 File #: 22-0004
TO: Members of the City Council
FROM: Mayor Mark A. Murphy

1. SUBJECT
Consideration of appointment of City Councilmembers to City Regional Boards and Committees.

2. SUMMARY
Consider appointments as recommended by the Mayor. All terms are for one year or at the discretion of the Mayor unless otherwise noted.

3. RECOMMENDED ACTION
Confirm Mayor Murphy’srecommendations of appointments of City Councilmembers to City regional boards and committees.

4. ATTACHMENTS
· Proposed Council appointments to City Regional Boards and Committees City of Orange Printed on 1/6/2022Page 1 of 1
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Proposed Council Appointments to City Committees and Regional Boards BOARD/COMMITTEE/COMMISSION Term Current Member Alternate City Audit Committee (non-voting member) 1 year Monaco N/A Cities-School’s Coordinating Committee 1 year Murphy Gutierrez Foothill Eastern TCA (Tollroad) 1 year Murphy Tavoularis North Net Fire Training (Joint Powers Authority) 1 year Dumitru Barrios Orange County Transportation Authority (OCTA) Term expires 12-31-2022
Murphy (appointed by City
Selection Committee)
N/A
Orange County Sanitation District 1 year Nichols Monaco Orange County Vector Control Term expires
1-3-2024
Dumitru N/A
Orange Housing Development Corporation (OHDC) 1 year Barrios Monaco Orange Elderly Services (Senior Center) 1 year Nichols Tavoularis Santa Ana Flood Protection Agency 1 year Nichols
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Agenda Item
City Council
Item #: 10.1. 1/11/2022 File #: 21-0697
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider a request for Permit Parking on portions of Madison Avenue, Orange Grove Avenue, and Wayfield Street. Resolution No. 11370.

2. SUMMARY
A request for permit parking was initiated by a resident in the affected neighborhood. The request meets the criteria and requirements delineated in the City’sNeighborhood Permit Parking Program.

Permit Parking Area “W”(Area “W”)has been approved by the City Traffic Commission and is being forwarded to the City Council for final approval.

3. RECOMMENDED ACTION

4. FISCAL IMPACT
The total expenditure for the project is $2,000 and will be funded in Minor Traffic Control Devices (16302) through Traffic Improvement Measure M2 (263).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
The City’s Neighborhood Permit Parking Program (NPPP) provides a mechanism for protecting residential streets from commercial parking overflow. Under the City’sNPPP guidelines, a request City of Orange Printed on 1/5/2022Page 1 of 3
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residential streets from commercial parking overflow. Under the City’sNPPP guidelines, a request for permit parking may be initiated by a resident in an affected neighborhood.

Staff received such a request for permit parking on Madison Avenue between Wayfield Street and the cul-de-sac east of Tustin Street. A review of the land uses, access, and circulation of the neighborhood and immediate vicinity indicated that (1) implementing permit parking only on Madison Avenue could potentially shift any commercial parking intrusion into other parts of the neighborhood and (2) permit parking would be more effective if the entire neighborhood (north of Walnut Avenue and east of Tustin Street) comprised any potential permit parking area (study area.) Thus, the study area was expanded to also include Orange Grove Avenue, Wayfield Street, and Walnut Avenue to allow those residents the option of participating in the permit parking process.

Staff then proceeded to evaluate the request in accordance with NPPP guidelines, taking into consideration all four aforementioned streets.

Parking Occupancy
In order for permit parking to be considered, at least 75 percent of the available on-street parking in the study area must be occupied during the perceived problem times. Staff conducted a parking occupancy study, the result of which indicated that approximately 76 percent of the available on street parking was being used on a recurring basis. Thus, the occupancy requirement is satisfied.

Resident Support
In addition, at least 75 percent of the area residents must sign a petition in favor. The results of the petition process were as follows:

Affected Street Total Households Number in Favor Percent in Favor Madison Avenue 9 7 78%
Orange Grove Avenue 9 7 78%
Wayfield Street 14 5 36%
Walnut Avenue 5 2 40%
Based on the petition results, only residents of Madison and Orange Grove avenues supported the proposal. Because the residents of Wayfield Street and Walnut Avenue overwhelmingly voted against permit parking, these streets would be excluded from the proposed permit parking area that was first brought to the City Traffic Commission (CTC) for approval.

City Traffic Commission Approval
At a special meeting held on October 14, 2021, staff presented an item to the City Traffic Commission (CTC) recommending permit parking on Madison and Orange Grove Avenues (Area “W”,)consistent with the results of the petition process and NPPP guidelines.

However, during public comments, two residents expressed concern over a small portion of Wayfield Street (north of Madison Avenue) being vulnerable to parking intrusion if it were not included in the proposed permit parking area. This concern was based on the fact that a larger portion of Wayfield City of Orange Printed on 1/5/2022Page 2 of 3
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proposed permit parking area. This concern was based on the fact that a larger portion of Wayfield Street (south of Madison Avenue) is currently designated “noovernight parking”;and the introduction of permit parking elsewhere in the neighborhood would leave six homes on Wayfield Street “unprotected.” But because Wayfield Street as a whole did not support permit parking during the petition process, and these two residents did not represent a majority of the affected portion of Wayfield Street, the CTC approved Area “W”to consist of Madison and Orange Grove Avenues only, consistent with staff’s recommendation.

To address the aforementioned concerns, staff determined it would be in the public interest to consider adding the six affected Wayfield Street homes to the CTC-approved Area “W”. Petitions were subsequently re-sent only to those affected addresses. Five of the six petitions (83%) were returned in favor of parking permits, demonstrating adequate support. Then, at its December regular meeting, the CTC approved incorporating Wayfield Street into Area “W”;and forwarding to the City Council for final approval. The entirety of Area “W” is depicted on the Area Map attached.

Recommendation
This request for permit parking was been reviewed in accordance with the City’sNPPP and satisfies all program requirements. Therefore, staff respectfully recommends the final approval of Area “W”, comprised of the following streets:
· Both sides of Madison Avenue from Wayfield Street to the cul-de-sac. · Both sides of Orange Grove Avenue from Wayfield Street to the westerly property lines of 1743/ 1744 East Orange Grove Avenue.
· West side of Wayfield Street from Orange Grove Avenue to Madison Avenue. · East side of Wayfield Street from Orange Grove Avenue to the property line at 565/555 North Wayfield Street.

7. ATTACHMENTS
· Area Map for Permit Parking Area “W”
· October Traffic Commission Report
· October Traffic Commission Minutes
· December Traffic Commission Report
· December Traffic Commission Minutes (Draft)
· Resolution No. 11370
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Agenda Item
City Council
Item #: 10.1. 1/11/2022 File #: 21-0697
TO: Honorable Mayor and Members of the City Council
THRU: Thomas R. Hatch, Interim City Manager
FROM: Christopher Cash, Public Works Director

1. SUBJECT
Public Hearing to consider a request for Permit Parking on portions of Madison Avenue, Orange Grove Avenue, and Wayfield Street. Resolution No. 11370.

Permit Parking Area “W”(Area “W”)has been approved by the City Traffic Commission and is being forwarded to the City Council for final approval.

3. RECOMMENDED ACTION

4. FISCAL IMPACT
The total expenditure for the project is $2,000 and will be funded in Minor Traffic Control Devices (16302) through Traffic Improvement Measure M2 (263).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
The City’s Neighborhood Permit Parking Program (NPPP) provides a mechanism for protecting residential streets from commercial parking overflow. Under the City’sNPPP guidelines, a request City of Orange Printed on 1/5/2022Page 1 of 3
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residential streets from commercial parking overflow. Under the City’sNPPP guidelines, a request for permit parking may be initiated by a resident in an affected neighborhood.

Staff then proceeded to evaluate the request in accordance with NPPP guidelines, taking into consideration all four aforementioned streets.

Resident Support
In addition, at least 75 percent of the area residents must sign a petition in favor. The results of the petition process were as follows:

However, during public comments, two residents expressed concern over a small portion of Wayfield Street (north of Madison Avenue) being vulnerable to parking intrusion if it were not included in the proposed permit parking area. This concern was based on the fact that a larger portion of Wayfield City of Orange Printed on 1/5/2022Page 2 of 3
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proposed permit parking area. This concern was based on the fact that a larger portion of Wayfield Street (south of Madison Avenue) is currently designated “noovernight parking”;and the introduction of permit parking elsewhere in the neighborhood would leave six homes on Wayfield Street “unprotected.” But because Wayfield Street as a whole did not support permit parking during the petition process, and these two residents did not represent a majority of the affected portion of Wayfield Street, the CTC approved Area “W”to consist of Madison and Orange Grove Avenues only, consistent with staff’s recommendation.

7. ATTACHMENTS
· Area Map for Permit Parking Area “W”
· October Traffic Commission Report
· October Traffic Commission Minutes
· December Traffic Commission Report
· December Traffic Commission Minutes (Draft)
· Resolution No. 11370
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Agenda Item
City Traffic Commission
Item #: 4.3. 10/14/2021 File #: 21-0553
TO: Chair and Members of the City Traffic Commission
THRU: Larry Tay, City Traffic Engineer
FROM: Dave Allenbach, Transportation Analyst

1. SUBJECT
Request to implement permit parking on East Madison Avenue from Wayfield Street to the Cul-de- sac; East Orange Grove Avenue from Wayfield Street to Tustin Street; Wayfield Street from Walnut Avenue to Orange Grove Avenue; and the north side of Walnut Avenue from Wayfield Street to Tustin Street.

2. SUMMARY
This request was made to better provide residents with convenient parking opportunities near their homes. Each of the streets within the study area satisfied minimum parking occupancy requirements, and, through the petition process, the residents of Madison and Orange Grove avenues support the proposal.

3. RECOMMENDED ACTION

1. Approve permit parking for both sides of Madison Avenue from Wayfield Street to the cul-de-sac; and both sides of Orange Grove Avenue from Wayfield Street to the westerly property lines of 1744/1743 Orange Grove Avenue.

2. Forward to the City Council for final approval.

4. FISCAL IMPACT
The total expenditure for the project is $1,000 and will be funded in Minor Traffic Control Devices (16302) through Traffic Improvement Measure M2 (263).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b. Provide and maintain infrastructure necessary to ensure the safety of the public.

6. DISCUSSION AND BACKGROUND
Background
A resident of Madison Avenue submitted a request to initiate the process for neighborhood permit parking on Madison Avenue west of Wayfield Street on October 19, 2020. The initiating resident lives in the neighborhood that includes East Madison Avenue, Wayfield Street Orange Grove Avenue and the North side of Walnut Avenue. Upon receipt of the application fee, Traffic Division staff initiated the parking occupancy study to determine which streets would be eligible under the City’s City of Orange Printed on 10/11/2021Page 1 of 3
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the parking occupancy study to determine which streets would be eligible under the City’s Neighborhood Permit Parking Program (NPPP) guidelines.

It should be noted that while the initial request was for Madison Avenue only, city staff adjusted the boundaries of the study area in order to minimize the likelihood that implementing permit parking would adversely affect surrounding streets. In this case, because Wayfield Street, Orange Grove Avenue and the north side of Walnut Avenue could potentially be impacted by a parking permit program on Madison Avenue, staff felt that the residents of these surrounding streets should also be included in the petition process if the applicable parking thresholds were met.

Existing Conditions
Staff mapped and counted the number of legal parking spaces for each of the four streets in the study area. Because the demand for on-street parking was highest in the evenings, staff conducted the parking observations during those hours. Beginning at 5:30 P.M., and progressively later each night, staff made ten observations in the subject neighborhood, including one Sunday observation.

Per the City’sadopted NPPP, a street parking occupancy rate of 75% in required to qualify for permit parking. The level of parking occupancy observed by staff for all the streets in the study area is

75.8%.

Because parking occupancy exceeded the minimum 75% threshold, a petition was circulated to determine the level of neighborhood support. A petition letter and a list of permit parking advantages and disadvantages were provided by the Traffic Division to each of the resident property owners and absentee property owners in the study area. Traffic Division staff mailed petition letters to the unsigned property owners on three separate occasions to give everyone the opportunity vote in favor or opposed to parking permits. The table below shows the street-by-street results of the neighborhood polling as of September 30, 2021.

Affected Streets Households In Favor Households OpposedUnreturned Madison Ave. 7 77.8% 2 22.2% 0 0%
OrangeGrove Ave 7 77.8% 0 0% 2 22.2%
Wayfield St 5 35.7% 5 35.7% 4 28.6%
Walnut Ave. 2 40% 0 0% 3 60%
For non-returned petitions, Traffic Division staff made three attempts to notify the property owners of the active permit parking petition process and request the return of a filled out petition to the City, which did yield additional participation.

The final results of the petition indicate that both Madison and Orange Grove Avenues have 77.8% of property owners in favor of the permit parking program, which exceeds the minimum 75% required under the program implementation policy. Wayfield Street and Walnut Avenue had 35.7% and 40% in favor, respectively. Most of Wayfield Street is already posted for “NoParking 11:00 P.M. to 7:00 A.M. and this may be satisfactory for those residents on Wayfield Street. If approved for implementation, the Orange Police Department will issue the permits for eligible households on Madison and Orange Grove Avenues. Participation in the permit program is voluntary; however, after implementation any vehicle parked on the street without a permit can be cited.

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Analysis
Staff has documented a consistently high demand for on-street parking in the subject area that becomes progressively greater through the evening hours. The level of parking demand exceeds the minimum requirements under the policies of the NPPP. While the subject neighborhood meets the parking occupancy requirements, only Madison and Orange Grove Avenues have demonstrated the necessary support needed to implement permit parking.

Given the existing parking demand on Wayfield Street and Walnut Avenue, it is doubtful that the parking situation would get noticeably worse for residents of those streets if they are voluntarily excluded from the parking permit program. However, the following should be kept in mind:

1. Should the residents of Wayfield Street and Walnut Avenue wish to be included in the permit program in the future, they will be required to pay the application fees and meet any program requirements that are in place at the time the request is submitted.

2. Any vehicle parked in a designated parking-by-permit area without a permit is subject to citation; furthermore, parking permits do not supersede the overnight parking restriction on Wayfield Street or the street sweeping restrictions in the neighborhood.

Recommendation
Based on the analysis, staff recommends that the Traffic Commission approve the implementation of a Neighborhood Parking Permit Program for the following street segments, and forward to the City Council for final approval:
· Both sides of Madison Avenue from Wayfield Street to the cul-de-sac. · Both sides of Orange Grove Avenue from Wayfield Street to the westerly property lines of 1743/ 1744 E. Orange Drove Avenue.

The proponent and all residents and businesses within potential impact areas of this neighborhood were notified of this item on Traffic Commission Meeting agenda.

7. ATTACHMENTS
· Letter of Request and receipt for Application Fee
· Notification Letter and receipt for remaining application fee · Area Map
· Parking Occupancy Study
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Agenda Item
City Traffic Commission
Item #: 4.1. 12/8/2021 File #: 21-0649
TO: Chair and Members of the City Traffic Commission
THRU: Larry Tay, City Traffic Engineer
FROM: Dave Allenbach, Transportation Analyst

1. SUBJECT
Request for permit parking on Wayfield Street between Orange Grove and Madison avenues.

2. SUMMARY
At its October 13, 2021 meeting, The City Traffic Commission approved Permit Parking Area “W” (Area “W”,) comprised of Orange Grove and Madison avenues west of Wayfield Street.

Subsequently, staff reached out to residents that expressed concerned over parking demand shifting onto Wayfield Street. This proposal addresses those concerns by incorporating the affected segment of Wayfield into Area “W”.

3. RECOMMENDED ACTION

1. Amend the previously approved Permit Parking Area “W”to include the segment of Wayfield Street between Orange Grove Avenue and the southerly property lines of 550/555 Wayfield Street.

2. Forward to the City Council for final approval.

4. FISCAL IMPACT
The total expenditure for the project is $1,000 and will be funded in Minor Traffic Control Devices (16302) through Traffic Improvement Measure M2 (263).

5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b. Provide and maintain infrastructure necessary to ensure the safety of the public

6. DISCUSSION AND BACKGROUND
During the discussion of Parking Permits for Madison Avenue and Orange Grove Avenue at the October 13th Traffic Commission Meeting, two residents expressed concern about Wayfield Street (north of Madison Avenue) not being included in the then-proposed permit parking area. Because these two residents did not represent a majority of the six affected Wayfield Street homes, the Traffic Commission approved the permits for Madison Avenue and Orange Grove Avenue only. The approval was consistent with staff’srecommendation at the time, and based on the results of the associated petition process whereby residents of Wayfield Street did not elect to participate in the parking permit program.

In light of (1) the aforementioned concerns and (2) the fact that Wayfield Street south of the subject City of Orange Printed on 12/2/2021Page 1 of 2
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In light of (1) the aforementioned concerns and (2) the fact that Wayfield Street south of the subject area is currently designated “no overnight parking”, staff determined that in the interest of fairness, petition letters would once again be sent to the six homes on Wayfield Street between Orange Grove and Madison avenues. This is because, without an overnight parking restriction, this section of Wayfield Street would likely be vulnerable to parking intrusion if not included in the approved Area “W”.

To that end, On October 18, 2021, petition letters were mailed to the six affected addresses on Wayfield Street. Five of the six petitions were returned to the City, all of which (83%) were in favor of parking permits. Moreover, staff has documented a consistently high demand for on-street parking in the subject area that becomes progressively greater through the evening hours. The level of parking demand exceeds the minimum requirements stipulated in the City’sNeighborhood Permit Parking Program (NPPP.)
Staff would like to once again remind the residents of Orange Grove Avenue, Madison Avenue and Wayfield Street of the following:

1. Should the residents of Walnut Avenue and Wayfield Street outside the proposed permit parking area (as shown on attached Area Map) wish to be included in the permit program in the future, they will be required to pay the application fees and meet any program requirements that are in place at the time the request is submitted.

2. Any vehicle parked in a designated parking-by-permit area without a permit is subject to citation; furthermore, parking permits do not supersede the existing overnight parking restriction on a portion of Wayfield Street or the street sweeping restrictions in the neighborhood.

Recommendation
Based on the above, staff recommends that the Traffic Commission approve the addition of Wayfield Street between Orange Grove and Madison avenues (including 550/555 N. Wayfield Street as shown on the attached Area Map) to the previously approved Permit Parking Area “W”;and forward to the City Council for final approval.

If approved, Area “W” would be expanded to consist of:
· Both sides of Madison Avenue from Wayfield Street to the cul-de-sac. · Both sides of Orange Grove Avenue from Wayfield Street to the westerly property lines of 1743/ 1744 E. Orange Grove Avenue.
· Wayfield Street between Orange Grove Avenue and the southerly property lines of 550/555 Wayfield Street.

The proponent and all residents and businesses within potential impact areas of this neighborhood were notified of this item on the Traffic Commission Meeting agenda.

7. ATTACHMENTS
· Area Map
City of Orange Printed on 12/2/2021Page 2 of 2
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City of Orange
City Traffic Commission
December 08, 2021

MINUTES - DRAFT

1. OPENING/CALL TO ORDER
Chair Beil called the meeting to order at 5:32 p.m.

1.1 PLEDGE OF ALLEGIANCE
Commissioner Ricci led the flag salute.

1.2 ROLL CALL

Present: Feliz, Vaughan, Ricci, and Beil

Absent: Dick

2. PUBLIC COMMENT
None.

3. CONSENT CALENDAR

3.1. Approval of meeting minutes of the Traffic Commission of the City of Orange for the October 14, 2021, Special Meeting.

ACTION: A motion was made by Commissioner Vaughan, seconded by Vice Chair Feliz, to approve the Consent Calender as presented.

The motion carried by the following vote
Feliz, Vaughan, Ricci, and BeilAyes:

NoneNoes:

DickAbsent:

4. CONSIDERATION ITEMS

4.1. Request for permit parking on Wayfield Street between Orange Grove and Madison avenues.

Chair Beil opened the public comments:

None.

A motion was made by Commissioner Vaughan, Seconded by Vice Chair Feliz to:

1. Amend the previously approved Permit Parking Area "W" to include the segment of Wayfield Street between Orange Grove Avenue and the southerly property lines of 550/555 Wayfield Street.

2. Forward to the City Council for final approval.

Page 1 of 2 ends

Orange City CouncilJanuary 11, 2022

Orange City Council
January 11, 2022