Agenda packet — Orange City Council, November 28, 2023 (part 2 of 3)

EXHIBIT A

QUALIFICATIONS FOR CITY COUNCIL CREATED

BOARDS, COMMITTEES AND COMMISSIONS

1. Community Development Block Grant Program Committee
 Number: The Committee shall consist of seven members.  Term: Two years.
 Qualifications: Members shall have their primary residence in the City.

Members shall show an interest in and knowledge of housing and community development issues, especially as they relate to affordable housing and public service for residents of low and moderate income.  Purpose: To provide a public engagement process in the allocation of CDBG funds as required by 24 C.F.R. Part 91.105
 Duties: As set forth in the CDBG Program Policies and Procedures Manual maintained by the City.
 Compensation: None.
 Meeting Dates and Location: The 2 nd Thursday of February and March convening at 6:00 p.m. in the Weimer Room.

2. Design Review Committee
 Number: The Committee shall consist of seven members.  Term: Four years.
 Qualifications: Members shall have their primary residence or primary place of employment in the City. Members shall be qualified to analyze and interpret architectural and site planning information, and shall include, but not be limited to, licensed landscape architects, architects, urban planners, engineers and licensed general contractors. At least two members shall have professional experience in urban planning, architectural history or historic preservation and possess a general knowledge of architecture in the City’s Historic Districts.
 Purpose: As set forth in Section 17.08.020.D of the Orange Municipal Code.  Duties: As set forth in Section 17.08.020.D of the Orange Municipal Code.  Compensation: $50 per meeting attended with a maximum of $200 per month.
 Meeting Dates and Location: The 1 st a n d 3rd Wednesday of each month convening at 5:30 p.m. in the City Council Chamber. If such date is a legal holiday observed by the City, the meeting shall be held the following day.

3. Investment and Audit Committee
 Number: The Committee shall consist of seven members: the City Treasurer and six representatives from the public.
 Term: Two years.
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Exhibit “A”

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 Qualifications: Members shall have their primary residence or primary place of employment in the City. In addition, they must meet at least one of the following criteria: (a) have the designation of Certified Public Accountant (CPA) or other business-related experience; and/or (b) have substantial education and demonstrated managerial experience of no less than five years in one or more of the following areas: investment banking, investment brokerage and sales, investment management, financial management and planning, or commercial banking. The qualifications of the applicants for the public representatives will be reviewed by the City Manager, the Finance Director, and an outside expert in finance, investments, or auditing who shall submit qualified applicants to the Mayor and City Council. The City Council shall endeavor to ensure that there is at least one citizen representative that meets the qualifications of criteria (a) above, and one citizen representative that meets the qualifications of criteria (b) above. No member of the Committee shall be financially interested in any contract, or otherwise conduct any business with any member of the City Council, the City Manager, the Finance Director, the City Treasurer, or the City or any of its agencies, either on an individual basis or as a partner, major shareholder, member, or employee of any firm.
 Purpose: The primary purpose of the Committee is to assist the City Council in discharging its responsibility for the overall stewardship of the City’s financial affairs, including determining that the City’s investments are consistent with the City’s investment policy’s principal objectives of safety first, liquidity second, and total rate of return third. The Committee reports to and acts as an advisory body to the City Council, and augments management’s accountability to the City Council. The Committee shall act solely as an advisory body and shall not exercise decision-making authority, nor shall it be involved in day-to-day financial and accounting operations of the City. The Committee shall not make, or direct City staff to make, any particular Investment, purchase any particular investment products, or do business with any particular investment companies, brokers, or advisors.  Duties: The Committee’s duties are to:
o Select the independent financial auditor for the financial statement audit;
o Monitor the progress and evaluate the results of the financial statement audit;
o Ensure the prompt and effective remedy of any control weaknesses and legal compliance violations identified in the course of the financial statement audit;
o Serve as a direct communications link between the City Council and the independent auditor;
o Monitor the adequacy of the City’s internal control structure on an ongoing basis, such as cash disbursements, cash receipting, treasury transactions, etc., as examined by the internal audit function and the independent financial auditor;
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o Review results of contract compliance audits and financial statement reviews conducted by the City’s internal audit function, such as trash contracts, internal controls, and revenue audits; o Review results of compliance audits and reviews conducted by outside agencies, such as Department of Transportation grants, M2 funds for the Senior Mobility program and the Ground Emergency Medical Transport (GEMT) supplemental reimbursement program; o Review the City’s Investment Policy annually and recommend revisions as necessary;
o Review the Treasurer’s Report as defined by the State of California Government Code Section 53646 to ensure conformance with the City’s Statement of Investment Policy and review related factors such as risk, diversification, and maturity;
o Provide advice regarding potential investment, potential investment strategies, and suitability of pools such as the Local Agency Investment Fund (LAIF);
o Provide written recommendations to the City Council;
o Maintain minutes of the Committee proceedings and report to the City Council quarterly.
 Compensation: None.
 Meeting Dates and Location: The 4 th Wednesday of January, April, July, and October at 3:00 p.m. in the Weimer Room.

4. Park Planning and Community Events Commission
 Number: The Commission shall consist of seven members.  Term: Four years.
 Qualifications: Members shall have their primary residence in the City.

Members shall have knowledge of sports complexes and/or park development, and knowledge of City-sponsored events.
 Purpose: As set forth in Chapter 2.60 of the Orange Municipal Code.  Duties: As set forth in Chapter 2.60 of the Orange Municipal Code.  Compensation: None.
 Meeting Dates and Location: The 3rd Tuesday of January, March, May, July, September, and October and convening at 5:30 p.m. in the City Council Chamber. If such date is a legal holiday observed by the City, the meeting shall be held the following Thursday.

5. Planning Commission
 Number: The Commission shall consist of seven members.  Term: Four years.
 Qualifications: Members shall have their primary residence in the City.

Members shall have general knowledge of land use and development.  Purpose: As set forth in Section 17.08.020.B
 Duties: Duties are set forth in Section 17.08.020 of the Orange Municipal Code.
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 Compensation: $60 per meeting attended with a maximum of $240 per month.
 Meeting Dates and Location: The 1 st a n d 3rd Monday of each month convening at 5:30 p.m. in the City Council Chamber. If such date is a legal holiday observed by the City, the meeting shall be held the following Thursday.

6. Traffic Commission
 Number: The Commission shall consist of seven members.  Term: Four years.
 Qualifications: Members shall have their primary residence in the City. The Chief of Police or designee and the City Traffic Engineer or designee, shall be non-voting members of the Commission.
 Purpose: As set forth in Chapter 10.06 of the Orange Municipal Code.  Duties: As set forth in Chapter 10.06 of the Orange Municipal Code.  Compensation: None. Reimbursement for incidental expenses allowed.  Meeting Dates and Location: The 2nd Wednesday of February, April, June, August, October, and December, convening at 5:30 p.m. in the City Council Chamber. If such date is a legal holiday observed by the City, the meeting shall be held the following day.

7. Santiago Creek Commission
 Number: The Commission shall consist of seven members.  Term: Four years.
 Qualifications: Members shall have their primary residence in the City.

Members shall have general knowledge of the Santiago Creek Area.  Purpose: As set forth in Chapter 2.62 of the Orange Municipal Code.  Duties: As set forth in Chapter 2.62 of the Orange Municipal Code.  Compensation: None.
 Meeting Dates and Location: The 4 th Wednesday of January, April, July, and October, convening at 5:30 p.m. in the City Council Chamber. If such date is a legal holiday observed by the City, the meeting shall be held the following day.
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Agenda Item
City Council
Item #: 7.1. 11/28/2023 File #: 23-0769
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Agreement with Kosmont & Associates, Inc. for economic development services.

2. SUMMARY
The proposed Professional Services Agreement with Kosmont & Associates, Inc. would provide for a feasibility analysis for creating an Enhanced Infrastructure Financing District to fund critical infrastructure in the City of Orange.

3. RECOMMENDED ACTION
Approve the agreement with Kosmont & Associates, Inc. in the amount of $31,000 for economic development services; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this agreement is $31,000 and will be funded through NW & SW Merged 2003 Taxable Bonds (FUND 952).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
e: Create an environment to attract, retain, and expand economic opportunities.

6. DISCUSSION AND BACKGROUND
Enhanced Infrastructure Financing Districts (“EIFD”) are an economic development and public finance tool introduced by Senate Bill 628 in 2014. EIFDs are the predominant form of Tax Increment Financing (“TIF”) in California following the dissolution of Redevelopment Agencies in 2012.

EIFD and TIF are a form of financing, where a city or a county designates a boundary around parcels positioned for new development or rehabilitation. The assessed property value within the district is “frozen”at the time of formation as the “baseline”of assessed value for the district. Over time, as new development or rehabilitation occurs and new property value is added to properties within the district, participating taxing entities can dedicate all or a portion of the new incremental property tax from values above the baseline (“propertytax increment”)to the EIFD with a dedicated purpose of funding infrastructure.

Eligible Infrastructure
Current law includes a definition of infrastructure eligible to be funded by EIFDs, including roadway, City of Orange Printed on 11/21/2023Page 1 of 3
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Item #: 7.1. 11/28/2023 File #: 23-0769
Current law includes a definition of infrastructure eligible to be funded by EIFDs, including roadway, utility, open space, and transit improvements, remediation activities, government facilities, parking, broadband infrastructure, affordable housing, and numerous other categories, preceded by the phrase “including, but not limited to”, demonstrating the legislative intent for the tool to be flexible.

EIFDs can also fund improvements outside of the district boundary, so long as the improvements benefit the properties within the district boundary. EIFDs can also fund maintenance costs, so long as the assets being maintained were initially installed at least partially utilizing EIFD funding.

EIFD Functions and Formation
EIFDs do not create a new tax, nor do they encumber any existing agency revenues or resources.

EIFDs allow taxing entities to set aside a portion of future property tax revenues for special purposes, such as infrastructure. By dedicating a portion of future property tax revenue for infrastructure improvements, the City not only guarantees a higher level of infrastructure investment, it also can attract tax increment contributions from other taxing entities as well as get increased priority for certain state and federal grant funding.

EIFD property tax increment may be used on a pay-as-you-go basis or leveraged in the form of EIFD bond issuances. There is no public vote required to form an EIFD or to issue EIFD debt; however, the formation process includes a series of public meetings and hearings that allows the community to comment on the proposed Infrastructure Financing Plan (“IFP”)that would govern EIFD activities.

The final public hearing includes an opportunity for landowners and residents within the district boundary to protest formation of the district. If more than 50% of the combined number of landowners and residents within the EIFD protest formation, the process must halt for at least one year. If no protest occurs, the EIFD is authorized for both formation and future debt issuance.

EIFD Governance
The EIFD is governed by an entity called the Public Financing Authority (“PFA”).The composition of the PFA varies, depending on which taxing entities are committing property tax increment to the EIFD. For the EIFDs established so far in California where a city and a county are both contributing property tax increment, the “template”for PFA composition has been two members of the city council, one member of the county board of supervisors, one member of the public appointed by the city council, and one member of the public appointed by the county board of supervisors, for a total of five members.

There are approximately 23 EIFDs established in California, with several more currently in the evaluation and formation process. Staff conducted an informal bid process to select a consultant to analyze the feasibility of an EIFD in Orange. Of the three firms contacted, Kosmont was the lowest responsive bidder and had the most relevant experience, having assisted with the formation of the majority of EIFDs in California and the only EIFD in Orange County.

The proposed agreement with Kosmont & Associates (Kosmont) would provide for a feasibility analysis for establishing an EIFD in the City of Orange. The analysis would include three tasks:

1. Evaluation of boundary and strategic considerations

2. Preliminary funding and financing analysis

3. Governance and implementation roadmap
Kosmont would present the results of the analysis to staff and the City Council. It is anticipated that tasks 1 through 3 would take between 8 and 12 weeks. Staff recommends approving the proposed City of Orange Printed on 11/21/2023Page 2 of 3
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Item #: 7.1. 11/28/2023 File #: 23-0769
agreement with Kosmont to complete a feasibility analysis for establishing an EIFD in Orange.

7. ATTACHMENT
· Professional Services Agreement with Kosmont & Associates, Inc.

City of Orange Printed on 11/21/2023Page 3 of 3
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Agenda Item
City Council
Item #: 7.1. 11/28/2023 File #: 23-0769
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager

1. SUBJECT
Agreement with Kosmont & Associates, Inc. for economic development services.

4. FISCAL IMPACT
The total expenditure for this agreement is $31,000 and will be funded through NW & SW Merged 2003 Taxable Bonds (FUND 952).

5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
e: Create an environment to attract, retain, and expand economic opportunities.

Eligible Infrastructure
Current law includes a definition of infrastructure eligible to be funded by EIFDs, including roadway, City of Orange Printed on 11/21/2023Page 1 of 3
powered by Legistar™
203
Item #: 7.1. 11/28/2023 File #: 23-0769
Current law includes a definition of infrastructure eligible to be funded by EIFDs, including roadway, utility, open space, and transit improvements, remediation activities, government facilities, parking, broadband infrastructure, affordable housing, and numerous other categories, preceded by the phrase “including, but not limited to”, demonstrating the legislative intent for the tool to be flexible.

EIFD Functions and Formation
EIFDs do not create a new tax, nor do they encumber any existing agency revenues or resources.

The proposed agreement with Kosmont & Associates (Kosmont) would provide for a feasibility analysis for establishing an EIFD in the City of Orange. The analysis would include three tasks:

1. Evaluation of boundary and strategic considerations

2. Preliminary funding and financing analysis

3. Governance and implementation roadmap
Kosmont would present the results of the analysis to staff and the City Council. It is anticipated that tasks 1 through 3 would take between 8 and 12 weeks. Staff recommends approving the proposed City of Orange Printed on 11/21/2023Page 2 of 3
powered by Legistar™
204
Item #: 7.1. 11/28/2023 File #: 23-0769
agreement with Kosmont to complete a feasibility analysis for establishing an EIFD in Orange.

7. ATTACHMENT
· Professional Services Agreement with Kosmont & Associates, Inc.

City of Orange Printed on 11/21/2023Page 3 of 3
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PROFESSIONAL SERVICES AGREEMENT
[Economic Development Services]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on this _____ day of ________________, 20__ (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and KOSMONT & ASSOCIATES, INC., a California corporation (“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 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 understands the difficulties and restrictions in performing the work. The services which are the subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.

Contractor shall perform all services in a manner reasonably satisfactory to City and in a manner in conformance with the standards of quality normally observed by an entity provid ing such services to a municipal agency. 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.

2. Compensation and Fees.

a. Contractor's total compensation for all services performed under this Agreement, shall not exceed THIRTY-ONE THOUSAND DOLLARS and 00/100 ($31,000.00) without the prior written authorization of City.

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

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 invoices shall state the basis for the amount invoiced, including services completed, the number of hours spent and any extra work performed.

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

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2 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 approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

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 perform 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 Agreement. 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 equi pment which may be required 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 any 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 benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

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. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” 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 Contractor 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 the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.

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3 10. Time of Completion . Except as otherwise specified in Exhibit “A,” Contractor shall commence the work provided for in this Agreement within five (5) days of the Effective Date of this Agreement and diligently prosecute completion of the work.

11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor 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 outside 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 ad ditional 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, asses sments, 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 shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

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 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 Agreement, provided that the foregoing provisions shall not apply to subcontracts for standard commercial supplies or raw materials. 208
4 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 consultant 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 8710 3 of the Government Code.

Contractor further agrees that it shall not be eligible to work as the design/build firm for the project that is the subject of this Agreement.

17. Indemnity.

a. To the fullest extent permitted by law , Contractor agrees to indemnify, defend and hold City, its City Council 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 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 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 Agreeme nt, including injury or damage either on or off City’s property; but not for any loss, injury, death or damage caused by the active 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 judgmen t 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.

b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.

c. Except for the Indemnitees, 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.

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5 d. The indemniti es 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 for a period not to exceed four (4) years. .

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 worker s’ 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) One Million Dollars ( $1,000,000) 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 Agreement, 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 c ontracting 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.

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 210
6 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. Except for professional liability insurance coverage that may be required by this Agreement, 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. In the case of professional liability insurance coverage, such coverage shall be issued by companies either licensed or admitted to conduct business in Califo rnia so long as such insurer pos sesses the aforementioned Best rating.

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 to 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.

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) years after termination or completion of this Agreement. 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 furnished if requested.
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7 21. Compliance with all Laws/Immigration Laws.

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. If 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, 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 it, and any subcontractor under it, shall pay not less than the specified p revailing rates of wages to all such workers . 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 the 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 require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.

e. 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 212
8 change employees working under this Agreement without written notice to City, accompanied by the verification required herein for such employees.

f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.

g. 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.

h. Contractor agrees to indemnify and hold City, its officers, officials, agents 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 to be performed under this Agreement shall be of any force or effect unless it is in writing and signed by both parties. Any wo rk performed which is inconsistent with or in violation of the provisions of this Agree ment 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 U.S. 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”

Kosmont & Associates, Inc. City of Orange
1601 N. Sepulveda Blvd., #382 300 E. Chapman Avenue
Manhattan Beach, CA 90266 Orange, CA 92866-1591
Attn.: Ken K. Hira Attn.: City Manager

Telephone: (949) 226-0288 Telephone: (714) 744-2222 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 213
9 instrument. Signatures transmitted via facsimile and electronic mail shall have the same effect as original signatures.

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

“CONTRACTOR” “CITY”

KOSMONT & ASSOCIATES, INC., CITY OF ORANGE, a municipal corporation a California corporation

*By: By:

Printed Name: Ken K. Hira Daniel R. Slater, Mayor Title: President

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Nathalie Adourian
Senior Assistant City Attorney

*NOTE: 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 City.

√

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EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
215

Kosmont Companies
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1070 Physical Address: 2301 Rosecrans Ave, Ste. 4140 Manhattan Beach, CA 90266 www.kosmont.com El Segundo, CA 90245

November 6, 2023

Aaron Schulze
Economic Development Manager
City of Orange
300 E Chapman Avenue
Orange, CA 92866

Re: Proposal for Special District Financing Feasibility Analysis

Dear Mr. Schulze:

Kosmont & Associates, Inc. doing business as Kosmont Companies (“Consultant” or “Kosmont”) is pleased to present this proposal to the City of Orange (“City” or “Client”) for Special District Financing Feasibility Analysis, with particular emphasis on Enhanced Infrastructure Financing District (“EIFD”) feasibility. This proposal serves as an Agreement when executed and returned by Client to Kosmont.

I. BACKGROUND AND OBJECTIVE

Kosmont understands that the City is considering an evaluation of the feasibility of EIFD or other form of tax increment financing (“TIF”) as a means to fund critical infrastructure to catalyze economic development in targeted opportunity site areas within the City. Kosmont is accordingly proposing the Scope of Services as outlined herein as an initial phase of work focused on feasibility evaluation. Future phases of work through potential district formation would require future authorization by the City, time and budget for which would be outlined for City consideration in advance.

Kosmont is the State leader in Special Financing District Evaluation and Formation Kosmont is currently assisting over 40 communities with evaluation or formation of special districts for the funding of infrastructure, housing, and other economic development activities. Special districts utilized include EIFDs, Community Revitalization and Investment Authorities (“CRIA”), Climate Resilience Districts (“CRD”), and Community Facilities Districts (“CFD”).

Kosmont has facilitated the formation of more EIFDs across the State than any other firm (15 out of the approximately 24 EIFDs), including all of the EIFDs formed in the Counties of Los Angeles and Orange. Kosmont Financial Services (registered municipal advisor) has successfully structured EIFD tax increment -related debt issuances, with more issuance activity underway.

Please see the attached summary of related Kosmont qualifications.

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II. SCOPE OF SERVICES

Approach to Tasks: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject by. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.

Task 1: Evaluation of Boundary and Strategic Considerations Kosmont will coordinate a kickoff meeting with City staff to discuss potential economic development opportunity sites for evaluation with respect to funding and financial tools of interest.

Based on discussions with City staff, Kosmont will analyze key strategic implementation considerations, including:
a) Property / land ownership and planned / proposed / potential future development (based on information to be provided by the City)
b) Infrastructure needs and estimated costs (to be provided by the City) c) Potential public and private sector partners (e.g., City, County of Orange, water districts, other affected taxing entities, developers / property owners) d) Overlap with former Redevelopment Agency Project Area boundaries and s tatus of redevelopment dissolution.

Task 2: Preliminary Funding and Financing Analysis
Kosmont will prepare a preliminary funding and financing analysis, including preliminary tax increment analysis, as appropriate, reflecting potential future development and potential public and private sector partners. The analysis will identify:
a) Potential assessed value generation from future development in the district b) Property tax increment funding capacity at select annual benchmarks and cumulatively over the estimated district lifetime(s)
c) Initial estimates of potential bonding capacity (to be prepared by Kosmont Financial Services, registered Municipal Advisor)
d) Complementary economic development tools and funding resources (e.g. , community facilities district [CFD] financing, grants , leverage of City -owned real estate assets, outstanding debt refinancing strategies)
e) Comparison of potential revenue generation to types and cost of infrastructure needed to serve potential development
f) As related to potential overlap of proposed district boundaries with former redevelopment agency project areas, analysis of corresponding relevant outstanding enforceable obligations and implications on available revenues.

Task 3: Governance and Implementation Roadmap
Based on the preferred tool(s) identified by the City based on previous Task findings, Kosmont will evaluate and summarize feasible governance and implementation alternatives, including district governing board composition, voting / approval procedures, district formation milestones, 217
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debt issuance procedures, and estimated timing, in order to provide potential public and private sector stakeholders with an illustrative “roadmap” for implementation.

Task 4: City Meeting / Workshop
Kosmont will coordinate a meeting with City staff , City Council, and/or other key community stakeholders, such as residents, property owners, and/or local developers. Kosmont will prepare and present an overview of relevant tools and feasibility analysis findings . The purpose of the workshop will be to facilitate education of key stakeholders, but also to vet and confirm potential priority projects to be funded by preferred tool(s) and to confirm the objectives related to potential implementation.

Potential Future (Phase Two) Services
• Taxing entity (e.g., County) stakeholder outreach for potential partnership • Preparation of Infrastructure Financing Plan (“IFP”) or other required documentation based on preferred tool(s)
• D istrict formation hearings
• Municipal Advisory activities for potential debt issuances to be provided by Kosmont Financial Services, registered Municipal Advisor.

III. SCHEDULE AND REQUIRED DATA

Consultant is prepared to commence work upon receipt of executed Agreement and project data outlined below. A summary PowerPoint presentation with separate analysis detail exhibits characterizing findings from Tasks 1 through 3 is anticipated to be delivered within eight (8) to twelve (12) weeks from assignment authorization.

Client will provide Consultant with existing project data, including relevant planning documentation (e.g., General Plan, specific plans, previous market studies), current project proposals and/or site plans, and information on potential infrastructure projects with estimated range of costs.

IV. COMPENSATION

Compensation for Tasks 1 through 4 will be a fixed fee of $31,000. Budget may be increased by Client at any time. Budget for future phases of work through potential district formation would require future authorization by the City, time and budget for which would be outlined for City consideration in advance.

Consultant anticipates a single consolidated round of Client comments and revisions on draft work product before Kosmont provides a final version of work product.

For the convenience of Kosmont’s clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment:

1. Fill in the “Make a Payment” form when you go to the link (https://kosmont.paidyet.com), or
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2. Call Kosmont Companies’ accounting desk (Ms. Reny Sultan; (424) 297-1072) to make a credit card payment

Consultant is prepared to commence work upon receipt of executed Agreement.

DISCLOSURE: Compensation for possible future transaction-based services or brokerage services.

The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation for such services. This disclosure is not intended to commit the Client.

When assignments involve real estate/property brokerage services, such transaction- based services are typically provided by Kosmont Real Estate Services, Inc. dba Kosmont Realty (“KR”) is licensed by the State of California Department of Real Estate (License# 02058445).

Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value (“BOV”) services on a fixed fee basis.

When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Financial Services (KFS). KFS is an independent Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.

SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators.

V. OTHER PROVISIONS
A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full.

B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge.

The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery 219
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of the arbitration award. Judgment upon the award rendered shall be final and non -appealable and may be entered in any court having jurisdiction.

C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered.

D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms execute this Agreement.

E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.

F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.

G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

H. Entire Agreement; Amendments and Waivers. This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto are superseded hereby . No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.

I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.

J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph.

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K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision herein.

L. Governing Law. The statutory, administrative and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement.

M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.

N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature.

O. Disclaimer. Consultant’s financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client’s reliance on Consultant’s analysis must consider the foregoing.

Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client’s understanding and by execution of this Agreement, acknowledgement that Consultant’s services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between the Client and Consultant.

Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.

P. L imitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Consultant has received from Client.

Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; 221
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riots; wide-spread power failures and wide-spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay.

R. Expiration of Proposal for Services . If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire.

S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal advice, or legal opinion. Client should seek independent legal counsel on matters for which Client is seeking legal advice.

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VI. ACCEPTANCE AND AUTHORIZATION

If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to Kosmont Companies. Upon receipt of both signed contracts, we will return one fully executed original for your files. Kosmont will commence work upon receipt of executed Agreement.

Read, understood, and agreed to this

____ Day of _______________ 2023

City of Orange Kosmont & Associates, Inc.
doing business as “Kosmont Companies”

By: _________________________
By: _________________________
(Signature) (Signature)

Name: Name: Ken K. Hira
(Print Name)

Its: Its: President
(Title)

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ATTACHMENT A

Kosmont Companies
2023-2024 Public Agency Fee Schedule
Professional Services

Chairman & CEO $475.00/hour
President $395.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $370.00/hour Vice President/Project Advisor $250.00/hour Senior Project Analyst $195.00/hour
Project Analyst/Project Research $175.00/hour
Assistant Project Analyst/Assistant Project Manager $150.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 80.00/hour

Rates shall remain in effect until December 31, 2024.
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SECTION 1.

FIRM QUALIFICATIONS
225

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
KOSMONT AND ASSOCIATES, INC. DBA KOSMONT COMPANIES - www.kosmont.com California Corporation - Established 1986 – 36+ years in Business Physical/Headquarters: 2301 Rosecrans Avenue, Suite 4140, El Segundo, CA 90245 Mailing: 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 Kosmont provides services to Clients virtually from satellite locations, in-person, and from the El Segundo headquarters across the Western U.S.

Kosmont Companies (“Kosmont”), a certified Minority Business Enterprise (“MBE”) and certified Small Business Enterprise (“SBE”), is a real estate and economic development services firm offering a full range of real estate and financial advisory, economic development strategies/plans, retail/business strategies, project finance, transaction structuring, negotiations, market analysis, feasibility studies, special district analysis, community outreach/project implementation services for both the public and private sectors. Kosmont Companies was founded in 1986 by Larry J.

Kosmont, Chairman and CEO, and is nationally recognized. With decades of advisory services, Kosmont has assisted hundreds of public agencies in their quest for services and successful public private projects. What sets Kosmont apart is our understanding of how economics relates to future project shaping, as well as our understanding of both the public and private sectors. Kosmont will integrate our established ability, strengths, seasoned experience, and hands-on approach to deliver the requested consulting services.

Rather than just write reports, Kosmont believes in a comprehensive approach to advisory services that Analyzes, Strategizes, and Implements. A brief highlight of our services is as follows.

Economic Development Consulting Services
• Economic Development Strategies (EDSP/CEDS)
• Kosmont Retail NOW!® Platform
• Special Districts (EIFD, CFD, CRIA, IRFD, CRD)
• Downtown Revitalization
• Asset Management Plans
• Developer Selection RFQ/RFP & DDA/ENA
• Sustainable Economic Development
• ROPS & RDA Dissolution Advisory Services
Land Use/Zoning and Community Planning Services
• Development Opportunity Reserve (D.O.R.)®
• Sales Tax Assessment Revenue (STAR*)®
• Other Zoning & Implementation Strategies for Economic Development Kosmont’s Mission Statement is the pursuit of four pillars of strength: Innovation, Integration, Integrity and Intelligence. We are on the cutting edge of products and services, we achieve financial success for our public and private sector clients, we are committed to community prosperity and quality of life, and our professional standards are of the highest caliber.
1 KOSMONT COMPANIES FIRM OVERVIEW
Planning and Development Services
• Project Evaluation
• Project Financials & Pro-Forma Assessment
• Property Acquisition/Leasing
• Land Use/Entitlements
• Due Diligence Reports
Real Estate Economics & Financial Advisory Services
• Fiscal & Economic Impacts
• Project Economics, Highest & Best Use (HBU) & Market
Studies
• Public & Private Financing Structures
• Affordable Housing (Pro Forma, Housing Element,
Negotiations, Feasibility)
SECTION 1.

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226

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Kosmont is a full-service firm which also provides various integrated services through Kosmont Realty (“KR”) and Kosmont Financial Services (“KFS”). KR is a full service and licensed real estate brokerage firm and KFS is a public finance firm providing financial advisory services, and is registered with the SEC.

In the aggregate, Kosmont Companies, KR, and KFS have extensive experience working with local and State government on real estate transactions between public agencies and private parties and structured project financing involving public and private funding sources. Collectively, Kosmont provides public agencies broad access to real estate consultants and brokers, public sector deal structure experts, and public-private financial advisors. We know of no other integrated set of companies that can provide a full complement of Economic Development Services, Real Estate Brokerage, and Municipal Advisory. Our diverse roles and experience in the real estate and financial industries have made us highly adaptable and skilled for this type of assignment. The chart below represents Kosmont’s wide-array of integrated services.
2 SECTION 1.

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KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
• California City Management Foundation (CCMF)
Kosmont Companies is the proud recipient of the
“2022 CCMF Corporate Sponsor of the Year Award”
• Southern California Association of Governments (SCAG) Sustainability Award “
5/2019 – City of Placentia“
• Mr. Larry J. Kosmont, CRE® is the honored recipient of the “2016 California Business Properties Association (CBPA) Champion of the Industry Award” ( for his service in real estate and economic development )
• California Association for Local Economic Development (CALED) Awards of Excellence Program
“2014 Award of Excellence in Economic Development Partnerships South Gate azalea Project
”
• California Association for Local Economic Development (CALED) Awards of Excellence Program
“2017 Award of Excellence for Economic Development Partnerships – Redondo Beach Marine Ave Hotels Project ”
• L.A. Business Journal Latino Business of the Year Awards “2015 Small Private Latino Business of the Year Award”
• Mr. Larry J. Kosmont, City of Seal Beach (1980) is a proud recipient of the John H. Nail Memorial Award
( Awarded annually by the City Managers Department
of the League of California Cities )
KOSMONT COMPANIES & LARRY J. KOSMONT ARE PROUD RECIPIENTS OF THE FOLLOWING AWARDS:

Larry J. Kosmont, Chairman
and CEO of Kosmont
Companies accepting the
CBPA Champion of the
Industry Award for his service
in real estate and economic
development. Pictured with Pat
Donahue, Chairman and CEO
of Donahue Schriber (left) and
Rex Hime, President & CEO of
CBPA (right).
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KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Exhibit 1: Kosmont Special Districts (TIF / EIFD / CRIA) in Progress Statewide 4 SECTION 1.

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KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Exhibit 1 Continued: Sample of Kosmont-Led District Progress by Stage of Implementation (Table and Legend Correspond to Map on Previous Page)
Fully Formed In Formation Process Under Evaluation
5 SECTION 1.

FIRM QUALFICIATIONS
Jurisdiction Purpose
Apple Valley Industrial and housing supportive infrastructure Banning Downtown revitalization, industrial infrastructure Barstow Industrial and housing supportive infrastructure Brentwood Housing, employment, and transit-supportive infrastructure Buena Park Mall reimagination, housing-supportive infrastructure Carson + L.A. County Remediation, affordable housing, recreation Citrus Heights Mall reimagination
Covina Downtown housing and blended use supportive infrastructure Fairfield Downtown, housing, and transit-supportive infrastructure Fresno Downtown, housing and transit-supportive infrastructure Fresno County Industrial and commercial supportive infrastructure Humboldt County Coastal mixed-use and energy supportive infrastructure Indian Wells Housing and tourism-supportive infrastructure Imperial County Industrial, renewable energy, and housing and infrastructure La Verne + L.A. County Housing and transit-supportive infrastructure Long Beach Economic empowerment and affordable housing
Los Angeles (Downtown, San Pedro, other) Affordable housing and transit-supportive infrastructure Los Angeles County Uninc. West Carson Housing / bio-science / tech infrastructure Madera County (3 Districts) Water, sewer, roads and other housing infrastructure Modesto + Stanislaus County Downtown, housing, and recreation infrastructure Mount Shasta + Siskiyou County Rural brownfield mixed-use infrastructure Napa Downtown, housing, tourism supportive infrastructure Oakland Affordable housing and infrastructure
Ontario Industrial and housing infrastructure
Palmdale + L.A. County Housing and commercial infrastructure Pittsburg Housing, commercial, and tech park infrastructure Placentia + Orange County Housing and TOD infrastructure Rancho Cucamonga Blended use and connectivity infrastructure Redlands Education related and blended use infrastructure Redondo Beach + L.A. County Parks / open space, recreation infrastructure Riverside Affordable housing and infrastructure
Sacramento County (Unincorporated) Industrial / commercial supportive infrastructure San Jose Affordable housing and TOD infrastructure
Sanger Housing and commercial supportive infrastructure Santa Cruz Downtown and blended use infrastructure
Santa Fe Springs Blended use infrastructure
Selma Water, sewer, and other housing supportive infrastructure Vacaville Housing and business park infrastructure
Yucaipa Housing and commercial infrastructure
230

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com

KOSMONT REFERENCES

1. City of Placentia EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Damien Arrula, City Administrator, City of Placentia, 714-993-8171, [email protected])

2. City of Los Angeles Downtown EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference:

Blair Miller, Economic and Workforce Development Department, City of Los Angeles, 213-744-7232, [email protected])

3. City of Los Angeles San Pedro EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference:

Jenny Scanlin, Chief Development Officer, Housing Authority of the City of Los Angeles, 213-252-2680, [email protected])

4. City of La Verne + County of Los Angeles EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Eric Scherer, Director of Community Development, City of La Verne, 909-596-8706, [email protected])

5. City of Carson + County of Los Angeles EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Saied Naaseh, Director of Community Development, City of Carson, 310-952-1770, [email protected])

6. County of Los Angeles Unincorporated West Carson EIFD Evaluation, Formation, and General Fund Fiscal Impact Analysis (Reference: Robert Moran, Principal Analyst, Los Angeles County Chief Executive Office, (213) 974- 1130, [email protected])

7. City of Rancho Cucamonga EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Noah Daniels, Director of Finance, City of Rancho Cucamonga, 909-774-2402, [email protected])

8. City of Covina EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Chris Marcarello, City Manager, City of Covina, 626-384-5410, [email protected])

9. City of Fresno EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Nelson Esparza, District 7 Councilmember, [email protected], (559) 621-8000)

10. City of Pittsburg EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference: Garrett Evans, City Manager, City of Pittsburg, 925-252-4850, [email protected])

11. City of Napa EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference:

Vincent Smith, Director of Community Development, City of Napa, 707-257-9530, [email protected]) 6 SECTION 1.

FIRM QUALFICIATIONS
231

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com

KOSMONT REFERENCES (CONTINUED)
7 SECTION 1.

FIRM QUALFICIATIONS

1. County of Los Angeles Metropolitan Transportation Authority (METRO) EIFD Feasibility Analysis (References:

Craig Hoshijima, Executive Officer of Countywide Planning & Development, 213-418-3384, [email protected] and Nick Saponara, Executive Officer of Transit Oriented Communities, 213-922-4313, [email protected])

2. County of Imperial EIFD Evaluation and General Fund Fiscal Impact Analysis (Reference: Rebecca Terrazas- Baxter, Assistance County Executive Officer, County of Imperial, 442-265-1014, RebeccaTerrazas- [email protected])

3. County of Fresno Unincorporated Business and Industrial Park EIFD Evaluation and General Fund Fiscal Impact Analysis (Reference: Will Oliver, President/CEO, Fresno County Economic Development Council, 559-476-2518, [email protected])

4. County of Madera EIFD Evaluation and Annual Administration (Reference: Matthew Treber, Chief of Development Services, County of Madera, 559-675-7821, [email protected])

5. County of Humbolt EIFD Evaluation, Formation, and City/County General Fund Fiscal Impact Analysis (Reference: Scott Adair, Director of Economic Development County of Humboldt, 707-599-1205, [email protected])

6. City of Mount Shasta + County of Siskiyou EIFD Evaluation and City/County General Fund Fiscal Impact Analysis (Reference: Tonya Dowse, Executive Director, Siskiyou County Economic Development Corporation, 530-842- 1638, [email protected])
232
SECTION 2.

MEET THE TEAM
233
Project Role:

Executive Oversight
Years with Firm: 37
Years of Experience: 40+
Education:
- Masters Public
Administration, USC
- B.A. Political Science,
State Univ. of New York –
Binghamton

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Larry J. Kosmont, CRE® Chairman and CEO Mr. Larry J. Kosmont, CRE® is Chairman and CEO of Kosmont Companies, which he founded in 1986. Kosmont Companies is an industry leader in public/private real estate/land use transactions and economic development. In 1990, he founded Kosmont Realty, a real estate brokerage firm. In 2015, he launched Kosmont Transactions Services which sources financing for public/private projects, P3 initiatives, and infrastructure funding. He is a co-principal, California Golden Fund, a USCIS approved EB-5 Regional Center.

RELEVANT EXPERIENCE: Throughout his career, Mr. Kosmont has managed hundreds of public and private sector consulting assignments, the majority of which in the SCAG region and many of which involving state and local housing policies and programs. A few of the more recent projects within the last 10 years are summarized below:
• City of La Verne/County of Los Angeles - Enhanced Infrastructure Financing District Formation + Debt Issuance • Southern California Associated of Governments (SCAG), CA - Housing and Sustainability District Technical Advisor • City of Placentia/County of Orange, CA - Enhanced Infrastructure Financing District Formation • City of Carson + L.A. County, CA – EIFD Evaluation
• City of Duarte, CA – EIFD Evaluation
• City of El Cajon, CA – EIFD Evaluation
• City of El Segundo + L.A. County, CA – EIFD Evaluation • City of Los Angeles, CA – Downtown – EIFD Evaluation
• County of Madera, CA – EIFD Evaluation and EIFD Annual Report Preparation • City of Napa, CA – EIFD Evaluation
• City of Ontario, CA – EIFD Evaluation
• City of Redondo Beach + L.A. County, CA – EIFD Evaluation • City of Riverside, CA – EIFD and Community Revitalization and Investment Authority (CRIA) Evaluation • Private Sector Client, Sacramento County, CA – EIFD Evaluation and Formation • City of South Gate, CA – EIFD Evaluation
FAMILIARITY PUBLIC-PRIVATE TRANSACTIONS AND INCENTIVE PROGRAMS:

Mr. Kosmont’s 4-decade career encompasses public/private and public agency projects which have included pursuit of funding sources, financial structuring, negotiation, development, and management of real estate and public finance transactions exceeding $10B. He has assisted hundreds of local government agencies in public finance and real estate matters ranging from large-scale economic development programs to site-specific real estate strategies and projects. He has guided over 1,000 private sector projects in obtaining public approvals, structuring deal terms, and securing public/private financing. These projects have involved working with hundreds of Federal State regional and local public agencies and jurisdictions on a wide variety of project and funding initiatives. 8 SECTION 2.

MEET THE TEAM
234

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Mr. Ken K. Hira serves as President for Kosmont Companies. An expert in real estate and economic development, Mr. Hira brings over 30 years of varied experience in virtually every aspect of acquisition, entitlement, development, financing, asset management, disposition, downtown revitalization, and strategic plans. His strengths include a keen understanding of retail trends, business retention/attraction, negotiating public-private transactions and implementing blended-use projects that revitalize communities and assist in economic development/tax generation programs.

A former Executive Vice President and mixed-use developer, Mr. Hira managed a portfolio of over $100 million of retail sites, while operating the commercial division of the company. Prior to this, as Managing Director of Acquisitions for a development company and Vice President of Development at a development firm, he evaluated and underwrote hundreds of acres of land, successfully captured and negotiated anchor tenant commitments creating $60 million of value in ground-up development and redevelopment and was responsible for 800,000 square feet of retail entitlement, design and development. As Vice President of a shopping center company based in San Diego (6 years), Mr. Hira entitled one million square feet of retail development projects, as well as led the acquisition of 24 neighborhood and community shopping centers, totaling 3.3 million square feet and valued at $375 million, and organized a $287 million recapitalization.

LICENSES/AFFILIATIONS: Mr . Hira is an active volunteer leader of the Innovating Commerce Serving Communities (ICSC) (formerly International Council of Shopping Centers). He was nominated and serves as the Co-Chair of the ICSC Community Advancement Board, nationally advocating public-private partnerships, while previously serving as the ICSC Western Division P3 Retail Co-Chair, Southern California State Director, Program Committee Chair and Alliance Co-Chair.

Project Role:

Principal Advisor
Years with Firm: 16+
Years of Experience: 30+
Education:

Bachelor of Economics
and Business, UCLA
Ken K. Hira President 9 RELEVANT EXPERIENCE:

Throughout his career, Mr. Hira has managed hundreds of public and private sector consulting assignments. A few of the more recent projects within the last 10 years are summarized below:
• Confidential Client, San Jose, CA – EIFD and CFD Evaluation • City of Fresno, CA – Downtown / Blackstone Bus Rapid Transit Corridor EIFD Formation • City of Daly City – Market analysis, Public Private Transaction structuring for key opportunity sites • City of Capitola – Mall Reimagination and developer negotiation assistance • City of Indian Wells, CA – EIFD Evaluation and County Partnership Negotiations • City of Seaside, CA – EIFD and Community Revitalization and Investment Authority (CRIA) Evaluation • City of Laguna Hills – Mall Reimagination, fiscal impact analysis, development agreement • City of Agoura Hills - Agoura Village Specific Plan Feasibility Analysis • City of Buellton, CA – Econ Dev / Specific Plan for Downtown with Development Opportunity Reserve (D.O.R.)® • City of El Cajon, CA – EIFD Evaluation
• City of Norwalk, CA - Economic Development Opportunities Plan and implementation services • City of San Rafael (ongoing) – Economic Development Strategic Plan including Mall evaluation • City of Pacifica (ongoing) – Economic Opportunities Study SECTION 2.

MEET THE TEAM
235
RELEVANT EXPERIENCE: Samples within the last 10 years are summarized below:
• City of La Verne/County of L.A. – Enhanced Infrastructure Financing District (EIFD) Formation + Debt Issuance • City of Placentia/County of Orange, CA – EIFD Formation • Southern California Associated of Governments (SCAG) - Housing and Sustainability District Technical Advisor • County of Humboldt - Samoa Peninsula EIFD Formation
• City of Fresno, CA – Downtown / Blackstone Bus Rapid Transit Corridor EIFD Formation • Private Sector Client, San Luis Obispo, CA – Development Agreement Negotiation, Infrastructure Financing Plan Preparation, Community Facilities District Formation
• Private Sector Client, Simi Valley, CA – Market / Highest and Best Use and Financial Feasibility Analysis
• City of Azusa, CA – EIFD Evaluation
• City of Brentwood, CA – EIFD Evaluation
• City of Carson + L.A. County, CA – EIFD Evaluation
• City of Duarte, CA – EIFD Evaluation
• City of El Cajon, CA – EIFD Evaluation
• City of El Segundo + L.A. County, CA – EIFD Evaluation • City of Grand Terrace, CA – EIFD Evaluation
• City of Indian Wells, CA – EIFD Evaluation
• City of Los Angeles, CA – Downtown – EIFD Evaluation
• County of Madera, CA – EIFD Evaluation and EIFD Annual Report Preparation
• City of Napa, CA – EIFD Evaluation City of Ontario,
CA – EIFD Evaluation
• City of Pittsburg, CA – EIFD Evaluation
• City of Redondo Beach + L.A. County, CA – EIFD
Evaluation
• City of Richmond, CA – EIFD Evaluation
• City of Riverside, CA – EIFD and Community
Revitalization and Investment Authority (CRIA)
Evaluation
• Private Sector Client, Sacramento County, CA –
EIFD Evaluation
• City of Santa Fe Springs, CA – EIFD Evaluation
• City of Seaside, CA – EIFD and CRIA Evaluation
• City of South Gate, CA EIFD Evaluation
Project Role:

PROJECT MANAGER
Years with Firm: 13+
Years of Experience: 16+
Education:

Bachelors of Science,
Mechanical Engineering,
Massachusetts Institute
of Technology
Mr. Joseph Dieguez is a Senior Vice President with Kosmont Companies serving public and private sector clients primarily through market and economic analyses, strategic planning, and real estate development advisory. His recent work includes special / tax increment district implementation (including Enhanced Infrastructure Financing Districts and Community Revitalization and Investment Authorities), market supply and demand analysis, fiscal impact and economic benefit studies, financial feasibility and development pro forma evaluation, and property reuse strategies for municipalities, real estate investment and development firms, and multiple Fortune 500 clients.

Prior to joining Kosmont Companies, Mr. Dieguez served as a senior analyst at a real estate investment and development firm and as an analyst at a top management consulting firm, responsible for industry, market, portfolio and property-level analysis, negotiations, and transaction execution support for investment banks, private equity firms, and other financial institution clients. Joseph was previously an assistant project manager at a construction management firm, where he assisted with RFQ/P development and project implementation.

LICENSES/AFFILIATIONS:

Mr. Dieguez is a licensed Real Estate Salesperson, licensed by the State of California Department of Real Estate (No. 01893926). He is also a Municipal Advisor Representative having achieved the MSRB Series 50 professional qualification and is duly registered with the SEC/MSRB.

Joseph Dieguez Sr. Vice President 10 SECTION 2.

MEET THE TEAM
236
• City of La Verne/County of Los Angeles - Enhanced Infrastructure Financing District Formation • Southern California Associated of Governments (SCAG) - Housing and Sustainability District Technical Advisor • County of Los Angeles, Chief Executive Office – Opportunity Zone Policy • City of Redondo Beach - Enhanced Infrastructure Financing District for AES power plant regional park, including Prop 68 State Parks grant
• County of Los Angeles Second District / Southern California Association of Governments – West Carson Enhanced Infrastructure Financing District
• County of Los Angeles First District / Southern California Association of Governments – LA County / USC Medical Center Tax Increment Financing Feasibility Analysis
• Friends of the Hollywood Central Park – Revenue and Feasibility Analysis 11 SECTION 2.

MEET THE TEAM
RELEVANT EXPERIENCE:

Throughout her career, Ms. Williams has managed hundreds of public and private sector consulting and banking assignments, the majority of which in the SCAG region and many of which involving state and local housing policies and programs. A few samples within the last 10 years are summarized below:
• City of Azusa – EIFD Evaluation
• City of Brentwood – EIFD Evaluation
• City of Carson + L.A. County – EIFD Evaluation
• City of Duarte – EIFD Evaluation
• City of El Segundo + L.A. County – EIFD Evaluation
• City of Los Angeles – Downtown – EIFD Evaluation
• City of Pittsburg – EIFD Evaluation
Project Roles:

Financing Analysis,
Stakeholder Outreach
Years with Firm: 8+
Years of Experience: 25+
Education:
- M.B.A., Finance,
University of Michigan
Ross School of Business
- M.A., Urban Planning,
UCLA
- B.A., Public Policy,
Stanford University
Association:

Ms. Williams was elected
as a Councilmember to
the City of Pasadena in
2020 and represents
District 2.

Ms. Felicia Williams is a Senior Vice President at Kosmont Companies and assists municipal clients with a comprehensive approach to economic development and climate action, in addition to identifying funding sources for key projects. She has a background in public finance, economic development, and sustainability. Specifically for Kosmont clients, Ms. Williams provides financial feasibility analysis for various types of infrastructure and tax increment financing districts, fiscal impact analysis, Specific / General Plan land use analysis, and Climate Action Plan implementation and project financing.

Felicia Williams Senior Vice President Ms. Williams has worked with local and State governments for 15 years in municipal finance. This experience includes individual cities throughout the SCAG territory, Los Angeles and Riverside Counties, as well as local Councils of Government in the South Bay, Western Riverside, Gateway Cities, and San Gabriel Valley. Additionally, Ms.

Williams has worked with State of California agencies on environmental financing programs and has served on policy advisory committees for State Senators and Assemblymembers. With broad experience in finance, public policy, and environment, she understands the policy underlying the financing programs to provide comprehensive solutions in key areas of SCAG’s focus. 237

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
SECTION 2.

MEET THE TEAM
12 Mr. Fernando Sanchez is a Vice President with Kosmont Companies assisting public and private sector clients with market and economic analyses, strategic planning, and real estate development advisory. His recent work includes market supply and demand analysis, prioritization of strategic opportunity sites for retail and future development, analysis of potential development uses, and geospatial analysis of boundaries and funding and financing feasibility studies of new infrastructure financing districts, including Enhanced Infrastructure Financing Districts (EIFDs).

Prior to joining Kosmont Companies, Mr. Sanchez also worked as an Analyst for Entertainment and Culture Advisors, a Los Angeles-based economic consulting firm specializing in the entertainment and attractions industry. Other previous experience includes working as an Analyst and Project Manager for JDT International Inc., a residential real estate developer in Philadelphia, and working as a Transportation Planner with the City of Philadelphia Mayor’s Office of Transportation and Utilities.

LICENSES/AFFILIATIONS:

Mr. Sanchez is a member of the American Planning Association and the Urban Land Institute. He also serves as the Treasurer of the Princeton Club of Southern California.

LANGUAGES:

Mr. Sanchez is fluent in English and Spanish.

RELEVANT EXPERIENCE:

Recent projects (General/Specific Plans and EIFD/CRIA Evaluations) are summarized below:
• City of Agoura Hills (Agoura Village Specific Plan Feasibility Analysis) • City of Brentwood (Enhanced Infrastructure Financing District (“EIFD”) Evaluation; Contra Costa County General Fund Fiscal Impact Analysis)
• City of Buellton (Market and Economic Analysis; Economic Development Plan / Specific Plan for Avenue of Flags Downtown District with Development Opportunity Reserve (D.O.R.)®) • City of Napa (EIFD Evaluation and Formation; General Fund Fiscal Impact Analysis) • City of Norwalk (Economic Development Opportunities Plan) • City of Ontario (EIFD Evaluation)
• City of Santa Barbara (Retail Market Study and Economic Development Strategy; Downtown Revitalization) • City of Seaside (EIFD and CRIA Evaluation)
• City of St. Helena (Highest and Best Use Analysis; Asset Strategy; Downtown Revitalization) • City of Watsonville (EIFD Evaluation)
• City of Thousand Oaks (Economic Development Specific Plan) Project Role:

Project Analytics, Research
and Support
Years with Firm: 9+
Years of Experience: 10+
Education:
- Master of City Planning,
Univ. of Pennsylvania,
(focus: public and private
real estate development)
- Bachelor of Arts,
Princeton University
Fernando Sanchez Vice President 238

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
LICENSES/AFFILIATIONS:

Ms. Ontiveros is a Municipal Advisor Representative having achieved the MSRB Series 50 professional qualification.

RELEVANT EXPERIENCE:

A few of her more recent projects are summarized below:
• City of Napa EIFD Evaluation and Formation
• City of Fairfield EIFD Evaluation
• City of Fresno EIFD Evaluation and Formation
• City of Mount Shasta EIFD Evaluation
• City of Rancho Cucamonga EIFD Evaluation
• City of Sanger EIFD Formation
• County of Madera EIFD implementation and annual reporting • County of Madera EIFD base year and tax increment audit • City of Placentia and County of Orange EIFD implementation and annual reporting • Menlo Park Fire Protection District – Tax Increment Projections • City of Torrance – Tax Increment Projections
• City of Thousand Oaks – Tax Increment Projections
• City of Napa – Tax Increment Projections
• City of Roseville – Tax Increment Projections
• City of Clovis – Annual Annexation Review and County Fire Transition Fee Calculations
Ms. Stephanie Ontiveros is a Vice President with Kosmont Companies and has extensive public agency consulting experience in economic development, redevelopment and finance. Prior to joining Kosmont, Ms. Ontiveros served as a financial consultant to over 90 cities, agencies and special districts throughout California, specializing in Property Tax and Tax Increment analysis, revenue evaluation, forecasting and budgeting. Ms. Ontiveros has conducted numerous special analysis projects for various city specific needs.

Project Role:

Tax Analysis Specialist
Years with Firm: 2+
Years of Experience: 26+
Education:
- Bachelor of Science,
Business Administration
– Finance, California
State University, Fresno
Stephanie Ontiveros Vice President 13 SECTION 2.

MEET THE TEAM
239
SECTION 3.

FIRM EXPERIENCE
240
La Verne Crossings – Transit Oriented Development
Kosmont was retained by the City of La Verne to initiate an EIFD feasibility study for a multi-agency proposed District that would help finance public infrastructure and encourage private investment for a variety for commercial and mixed-use projects. The proposed project area is in a transit-oriented development (TOD) area of the La Verne Old Town Specific Plan and surrounds a proposed Metro Gold Line Extension light rail station. Anticipated infrastructure improvements include a range of first mile / last mile, pedestrian and bicycle connectivity, roadway and other infrastructure projects. Kosmont’s work resulted in EIFD formation by the City in October 2017 as the first EIFD in the County of Los Angeles and the six-county SCAG region. After lengthy negotiations, the County of Los Angeles formally joined the district as a partner in January 2020, committing 50% of its share of property tax increment to the district. La Verne represents the second EIFD statewide involving a city and county partnership (after Placentia / Orange County).

Work Samples: City of La Verne / County of LA EIFD
CITY OF LA VERNE / COUNTY OF LOS ANGELES: Enhanced Infrastructure Financing District (EIFD) Feasibility Analysis and Formation
CITY OF FRESNO: Downtown and Blackstone BRT Corridor Enhanced Infrastructure Financing District (EIFD) Evaluation and Formation
Kosmont evaluated and led the successful formation of an enhanced Infrastructure Financing District (EIFD) encompassing approximately 4,200 acres in the Downtown and Blackstone Avenue Bus Rapid Transit (BRT) Corridor areas of the City, an area almost entirely comprised of Opportunity Zone and Disadvantaged Community Census Tracts.

The district will generate approximately $350 million in funding for transit and housing-supportive infrastructure to catalyze and support future growth and reinvestment into the local community. The Fresno City Council and the EIFD Public Financing Authority (PFA) approved the final Infrastructure Financing Plan (IFP) in September 2020, marking the first City-lead EIFD in the Central Valley.

Work sample: https://www.fresno.gov/eifd

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
14 SECTION 3.

FIRM EXPERIENCE
241

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
15 SECTION 3.

FIRM EXPERIENCE
CLIENT: SCAG, 900 WILSHIRE BLVD., STE. 1700, LOS ANGELES, CA 90017 CONTACT: Kimberly Clark, SCAG Program Manager, Resource Conservation & Resilient Communities (213) 236-1844 / [email protected]
PROJECT DATES: August 2015 – Present
WORK SAMPLE: SCAG Application Link / City of Placentia / County of Orange EIFD / West Carson EIFD For many years, Kosmont has been engaged by the Southern California Association of Governments (SCAG) for special district and tax increment financing subject matter expertise and technical advisory, serving its 191 member cities and six member counties. Kosmont developed with SCAG a special district technical screening application and assists with ongoing training services for its member cities and counties.

Kosmont has additionally led over fifteen EIFD/CRIA "Pilot Projects" funded by SCAG throughout the SCAG region, involving district feasibility evaluation, stakeholder outreach, and actual district formation. One Pilot involves the City of Placentia, where Kosmont provided the initial EIFD feasibility study for an approximately 300-acre Transit-Oriented Development (“TOD”) area surrounding their forthcoming Metrolink station. Kosmont assisted Placentia with drafting of the required Infrastructure Financing Plan (“IFP”) and tax increment negotiations with the County of Orange.

Kosmont worked with Placentia and Orange County to form the first city and county cooperative EIFD in the State, established on July 30, 2019. The EIFD is expected to approximately $27 million in infrastructure funding capacity, and Kosmont is currently assisting the City and County in underwriting the EIFD’s first debt issuance of approximately $10 million. An additional Pilot involves the unincorporated community of West Carson in Los Angeles County, where Kosmont provided initial feasibility analysis and additionally provided technical advisory, stakeholder outreach, and other assistance to form the first County-led EIFD in Southern California. The West Carson EIFD is approximately 1,587 acres, encompassing the West Carson TOD Specific Plan and Harbor-UCLA Medical Center Campus Master Plan areas. Total tax increment revenues to be generated are estimated at $625 million.

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG):

Special District and Value Capture Technical Advisory
242

LETTER OF RECOMMENDATION
16 SECTION 3.

FIRM EXPERIENCE
243
17 CITY OF NAPA: Enhanced Infrastructure Financing District (EIFD) Formation Kosmont was retained by the City of Napa for technical advisory related to the formation of the City of Napa Enhanced Infrastructure Financing District (EIFD). The EIFD encompasses approximately 840 acres including a mix of potential future land uses on significantly underutilized properties. Kosmont prepared the governing Infrastructure Financing Plan (IFP), tax increment revenue projections, fiscal impact and economic benefit analysis, staff reports, resolutions, and required public mailing, newspaper, and website notices. Kosmont lead presentations to the City Council, the EIFD Public Financing Authority (PFA), and County staff and elected officials regarding the proposed activities of the EIFD. The Napa EIFD was successfully formed as the first EIFD in Napa County on July 6, 2022.

SECTION 3.

FIRM EXPERIENCE
SAMPLE WORK PRODUCT: Link to Napa EIFD website (see Infrastructure Financing Plan and Appendices) https://www.cityofnapa.org/1171/Enhanced-Infrastructure-Financing-Distri 244

LETTER OF RECOMMENDATION
18 SECTION 3.

FIRM EXPERIENCE
245

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
19 SECTION 3.

FIRM EXPERIENCE
COUNTY OF HUMBOLDT: Samoa Peninsula Enhanced Infrastructure Financing District (EIFD) Formation
Kosmont was retained by the County of Humboldt for technical advisory related to the formation of the Samoa Peninsula Enhanced Infrastructure Financing District (EIFD) in unincorporated County jurisdiction. The EIFD is approximately 2,400 acres encompassing a mix of potential future land uses on significantly underutilized properties. Kosmont providing analysis and peer review of the guiding Infrastructure Financing Plan, tax increment revenue projections, fiscal impact and economic benefit analysis, staff reports, resolutions, and required public mailing, newspaper, and website notices.

SAMPLE WORK PRODUCT: Samoa Peninsula EIFD
Kosmont is currently retained by Metro as part of a team with Morgner Construction Management to provide Value Capture Support advisory services to cities and the County of Los Angeles in connection with current and proposed Metro transit stations across the Metro’s various transit corridors (e.g., WSAB, Foothill, ESP2).

Kosmont is providing station-area specific value capture analysis regarding the feasibility and magnitude of potential tax increment financing (TIF) mechanisms such as Enhanced Infrastructure Financing Districts (EIFDs) in order to assist cities and the County is meeting their respective local cost match requirements and to support their investment in first/last-mile infrastructure to support TOD adjacent to station areas. Kosmont is additionally leveraging its relationships and experience with the various affected municipalities across the County (and experience with municipalities across the state regarding transit value capture) to demonstrate and communicate the value of collaborating with Metro in station area Value Capture matters.

CLIENT: LOS ANGELES COUNTY METROPOLIATN TRANSPORTATION AUTHORITY CONTACT: Craig Hoshijima, Executive Officer, Strategic Financial Planning (714) 307-9437 / [email protected]
PROJECT DATES: February 2022 – Present
LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY (METRO):

Systemwide Value Capture Support Advisory
246

KOSMONT COMPANIES
1601 N. Sepulveda Blvd., #382 I Manhattan Beach, CA 90266 I 424.297.1070 www.kosmont.com
Kosmont was retained by the City of Carson for technical advisory related to the evaluation and eventual formation of the City of Carson Enhanced Infrastructure Financing District (EIFD). The EIFD encompasses approximately
1,735 acres including a mix of potential future land uses on significantly underutilized properties. Kosmont
prepared the governing Infrastructure Financing Plan
(IFP), tax increment revenue projections, fiscal impact and economic benefit analysis, staff reports, resolutions, and required public mailing, newspaper, and website notices.

Kosmont lead presentations to the City Council, the EIFD Public Financing Authority (PFA), and County staff and
elected officials regarding the proposed activities of the EIFD. Kosmont additionally facilitated discussions with the County of Los Angeles to eventually establish the third successful City/County EIFD partnership in the County of Los Angeles. The Carson EIFD was officially formed in
August 2022.

Click the links here to view the Carson EIFD website and the Carson EIFD Infrastructure Financing Plan (IFP).
20 SECTION 3.

FIRM EXPERIENCE
CITY OF CARSON: Carson Enhanced Infrastructure Financing District (EIFD) Formation 247
Agenda Item
City Council
Item #: 7.2. 11/28/2023 File #: 23-0781
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager

1. SUBJECT
Agreement with Kelly Associates Management Group LLC to facilitate and update the City’sStrategic Plan.

2. SUMMARY
The proposed agreement with Kelly Associates Management Group LLC will help the City evaluate its organizational goals and identify means to achieve these goals through an updated Strategic Plan.

3. RECOMMENDED ACTION
Approve the agreement with Kelly Associates Management Group LLC in the amount of $20,000 to update the City’sStrategic Plan; and authorize the Mayor and City Clerk to execute on behalf of the City.

4. FISCAL IMPACT
The total expenditure for this agreement is $20,000 and will be funded through General Fund (100) account number 100.0201.51670.00000.

5. STRATEGIC PLAN GOALS
The proposed recommendation will support each goal identified in the current Strategic Plan by making comprehensive changes/updates to better align with the Orange Community’s service priorities and needs.

6. DISCUSSION AND BACKGROUND
The City of Orange’sStrategic Plan was adopted in January 2008 and updated in 2018. Currently, the Strategic Plan offers a high-level overview of the City’sorganizational purpose, mission, vision, and values. To ensure the Strategic Plan is a “livingdocument”reflecting the community’spreeminent needs, the City Council expressed interest in making comprehensive changes to the existing Strategic Plan.

Pursuant to Orange Municipal Code Section 3.02.420 (pertaining to informal written proposal solicitations), staff contacted and met with three firms that have led citywide strategic planning processes and workplans with other local governments in Southern California. After detailing the City’s needs, expectations, and anticipated Strategic Plan adoption date, the City received three proposals from Baker Tilly (formerly Management Partners), Jacob Green & Associates, and Kelly Associates Management Group.

Although each firm has been successful in working with local agencies, staff ultimately determined that Kelly Associates Management Group (“KAMG”)meets the City’sneeds while providing strategic City of Orange Printed on 11/21/2023Page 1 of 2
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Item #: 7.2. 11/28/2023 File #: 23-0781
that Kelly Associates Management Group (“KAMG”)meets the City’sneeds while providing strategic planning services at the greatest value to the City. KAMG was formed in 2011 and has provided organizational management, strategic planning, team building, economic development, and city planning services to public agencies and non-profits across California. In Southern California, KAMG has facilitated and developed Strategic Plans for public agencies that include Placentia, Buena Park, Lake Forest, Alhambra, Hawaiian Gardens, and the Orange County Local Agency Formation Commission (“OCLAFCO”).

KAMG’s approach to develop a new Strategic Plan includes an organizational strengths, weaknesses, opportunities, and threats exercise (commonly referred to as a SWOT analysis) with the City Council as well as individual meetings with the City Council. These meetings will help provide perspective/expectations and lay the groundwork for two public study sessions with staff and the City Council (facilitated by KAMG). At these study sessions, overarching community goals will be established as well as the specific tasks/projects to achieve these goals.

At the conclusion of the two study sessions, KAMG will work with staff to develop the Strategic Plan document which will be brought to the City Council for final adoption. City staff contacted previous clients to better discern KAMG’sapproach and deliverables. Those contacted spoke positively of KAMG and the services provided to their respective agencies. Additionally, for reference, attached to this staff report are Strategic Plans KAMG helped facilitate with OCLAFCO and the City of Lake Forest.

7. ATTACHMENTS
· Professional Services Agreement with Kelly Associates Management Group · OCLAFCO Strategic Plan
· City of Lake Forest Example Strategic Plan
· Summary of Services
City of Orange Printed on 11/21/2023Page 2 of 2
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Agenda Item
City Council
Item #: 7.2. 11/28/2023 File #: 23-0781
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager

1. SUBJECT
Agreement with Kelly Associates Management Group LLC to facilitate and update the City’sStrategic Plan.

4. FISCAL IMPACT
The total expenditure for this agreement is $20,000 and will be funded through General Fund (100) account number 100.0201.51670.00000.

Although each firm has been successful in working with local agencies, staff ultimately determined that Kelly Associates Management Group (“KAMG”)meets the City’sneeds while providing strategic City of Orange Printed on 11/21/2023Page 1 of 2
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Item #: 7.2. 11/28/2023 File #: 23-0781
that Kelly Associates Management Group (“KAMG”)meets the City’sneeds while providing strategic planning services at the greatest value to the City. KAMG was formed in 2011 and has provided organizational management, strategic planning, team building, economic development, and city planning services to public agencies and non-profits across California. In Southern California, KAMG has facilitated and developed Strategic Plans for public agencies that include Placentia, Buena Park, Lake Forest, Alhambra, Hawaiian Gardens, and the Orange County Local Agency Formation Commission (“OCLAFCO”).

PROFESSIONAL SERVICES AGREEMENT
[Resident/Non-Resident Analysis]

THIS PROFESSIONAL SERVICES AGREEMENT (the “Agreement”) is made at Orange, California, on thi s ___ day of ______________, 20 23 (the “Effective Date”) by and between the CITY OF ORANGE, a municipal corporation (“City”), and KELLY ASSOCIATES MANAGEMENT GROUP LLC, a California corporation (“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 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 understands the difficulties and restrictions in performing the work. The services which are th e subject of this Agreement are not in the usual course of City’s business and City relies on Contractor’s representation that it is independently engaged in the busi ness of providing such services and is experienced in performing the work.

Jack Morgan, Senior Assistant to the City Manager (“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 his/her 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. Compensation and Fees.

a. Contractor's total compensation for all services performed under this Agreement, shall not exceed TWENTY THOUSAND DOLLARS and 00/100 ($20,000.00) without the prior written authorization of City.

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.

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

c. 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 approve a reduction in the services to be performed and compensation therefor. All amendments shall set forth the changes of work, extension of time, and/or adjustment of the compensation to be paid by City to Contractor and shall be signed by the City’s Project Manager, City Manager or City Council, as applicable.

8. Designated Persons. Only those qualified persons authorized by City’s Project Manager, or as designated in Exhibit “A,” 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.

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3 9. Assignment or Subcontracting. No assignment or subcontracting by Contractor 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 the prior written approval of City. City may terminate this Agreement rather than accept any proposed assignment or subcontracting. Such assignment or subcontracting may be approved by the City Manager or his/her designee.

10. Time of Completion . Except as otherwise specified in Exhibit “A,” Contractor shall commence the work provided for in this Agreement within five (5) days of the Effective Date of this Agreement and diligently prosecute completion of the work in accordance with the time period set forth in Exhibit “A” hereto or as otherwise agreed to by and between the representatives of the parties.

11. Time Is of the Essence. Time is of the essence in this Agreement. Contractor 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 outside 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.

15. Equal Employment Opportunity . During the performance of this Agreement, 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 agrees to post in conspicuous places, available to employees and applicants for employment, a notice setting forth provisions of this non-discrimination clause.
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4 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 for employment without regard to race, color, religion, sex, national origin, mental or physical disability, or any other basis prohibited by applicable law.

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 consultant 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 8710 3 of the Government Code. [Contractor further agrees that it shall not be eligible to work as the design/build firm for the project that is the subject of this Agreement.]

17. Indemnity.

(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 active 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 judgmen t 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.

b. To the fullest extent permitted by law, and as limited by California Civil Code 2782.8, Contractor agrees to indemnify and hold Indemnitees harmless from all liability 255
5 arising out of any claim, loss, injury to or death of persons or damage to property to the extent caused by its negligent professional act or omission in the performance of professional services pursuant to this Agreement.

d. The indemniti es 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.

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) Million Dollars ($1,000,000) 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.

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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6 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.

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 to any of the perils for which it has agreed to provide insurance, Contractor shall look solely to its insurance for recovery.

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. 257
7 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.

21. Compliance with all Laws/Immigration Laws.

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

c. Contractor represents and warrants that it:

(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

(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 258
8 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 require all subcontractors or subconsultants to make the same representations and warranties as set forth in Subsection 21.c.

e. 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.

f. Contractor shall require all subcontractors or sub-consultants to make the same verification as set forth in Subsection 21.e.

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9 “CONTRACTOR” “CITY”

Kelly Associates Management Group LLC City of Orange
5725 Lunada Lane 300 E. Chapman Avenue
Long Beach, CA 90814 Orange, CA 92866-1591
Attn.: William Kelly Attn.: Jack Morgan

Telephone: 714-837-7502 Telephone: 714-744-2220
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 facsimile 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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10 IN WITNESS of this Agreement, the parties have entered into this Agreement as of the year and day first above written.

“CONTRACTOR” “CITY”

KELLY ASSOCIATES MANAGEMENT CITY OF ORANGE, a municipal corporation GROUP LLC, a California corporation

*By: By:

Printed Name: Daniel R. Slater, Mayor
Title:

*By: ATTEST:

Printed Name:

Title:

Pamela Coleman, City Clerk

APPROVED AS TO FORM:

Nathalie Adourian,
Senior Assistant City Attorney

√

261

EXHIBIT “A”

SCOPE OF SERVICES

[Beneath this sheet.]
262

November 1, 2023

Mr. Jack Morgan
Senior Assistant to the City Manager
City of Orange
300 E. Chapman Ave.

Orange, CA 92866

SUBJECT: PROPOSAL TO FACILITATE THE DEVELOPMENT OF A NEW STRATEGIC PLAN

Dear Mr. Morgan:

Kelly Associates Management Group LLC (KAMG) is pleased to submit this proposal to the City of Orange to facilitate the development of the City’s new strategic plan.

WORK PLAN

The development of the City’s Strategic Plan will include the following tasks:

Task
No.

Task Description

1.0 Meet with the City Manager , the Assistant City Manager and the Senior Assistant to the City Manager to understand the specific goals and tasks. This action would include a review of the existing strategic plan.

2.0 Prepare and distribute a SWOT exercise to the Mayor and each City Councilmember to complete.

3.0 Conduct individual interviews with the Mayor and each City Councilmember to discuss their responses.

4.0 Prepare a summary of the City Councilmember’s comments for the City Manager.

5.0 Lead and facilitate two (2) City Council study sessions to establish goals.

6.0 Assist the City staff in the preparation of the draft strategic plan document.

7.0 Assist as necessary in the presentation of the Plan to the City Council at a regular City Council meeting.

Deliverables (where applicable)

Task 4.0 - Written summary of Mayor and City Council SWOT comments Task 5.0 – Prepare wall sized exhibits of Mayor and City Council SWOT comments

263
Mr. Jack Morgan
Proposal to Develop a New Strategic Plan

Page 2 ends

COMPANY PROFILE

The Kelly Associates Management Group (KAMG) was formed by President/CEO William R. Kelly and Executive Vice President Christine E. Kelly in 2011. KAMG is a California Limited Liability Company which operates out of its corporate office in Long Beach, California and services local government and non-profit clients throughout the State.

KEY PERSONNEL

William R. “Bill” Kell y is KAMG’s President/CEO where he specializes in the areas of organizational management, strategic planning, team building, economic development, and city planning. He will serve as Project Manager and primary point of contact for this engagement.

Mr. Kelly previously served as the Chief Operating Officer for Urban Futures, Inc. for four years where he consulted with many local agencies. Prior to that, Bill was the City Manager of the City of Arcadia and Executive Director of the Redevelopment Agency for 14 years. He has also held positions of Interim City Manager, Deputy City Manager, Director of Community Development/Public Works, Director of Development Services, and Director of Planning and Building for several California municipalities (Burbank, Brea, Baldwin Park, San Bruno, Glendora and Yorba Linda) . He also served as Vice Chair of the State of California Attorney General CLETS Commission and as Chair of the L. A. County Emergency Medical Services Commission.

Mr. Kelly has a Bachelor of Science degree in City Planning from California State Polytechnic University, Pomona, an MPA from the University of Southern California, and both an Executive MBA and MA in Management from Claremont Graduate University, where he has also taken Doctoral Studies in Executive Management. He is an Adjunct Professor at the University of Southern California, Price School of Public Policy and is also a POST-certified instructor for statewide Police Team Building.

Christine E. “Chris” Kelly is KAMG’s Executive Vice President where she specializes in the areas of project oversight, permit streamlining, economic development, and city planning. Ms. Kelly has over 35 years of public and private sector experience and mos t recently served as Land Use Services Director for the County of San Bernardino, overseeing Planning, Building and Safety, Code Enforcement, and Mining. Prior to that, she was the Community Development Director for the cities of Chino Hills, Pomona, and Cypress and the Development Services Director for the City of Brea. Ms. Kelly was also the Deputy Executive Director of the Redevelopment Agencies for the cities of Cypress and Pomona. In the private sector, she worked as a Senior Project Manager for Hogle -Ireland, Inc. overseeing the Chapman University Specific Plan and building expansion, as well as other agency specific plans.

Ms. Kelly received her Bachelor of Arts degree in Anthropology and a Master’s degree in Public Administration, both from California State University, Long Beach. She also received a Certificate in Urban Studies from the same institution. Ms. Kelly has ser ved as an Adjunct Professor, teaching Economic Development in the Masters of Public Administration Program at California State University, Long Beach.

264
Mr. Jack Morgan
Proposal to Develop a New Strategic Plan

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PROFESSIONAL FEES

For this engagement, KAMG proposes a flat fee contract in the amount of:

TWENTY THOUSAND DOLLARS ($20,000.00)

This flat fee includes a reasonable allowance for reimbursable expenses. It is proposed that the Professional Fees be paid at the completion of the project.

We look forward to working with the City of Orange. If you have any questions, please feel free to contact me on my cell phone at (714) 837-7502 or by email at [email protected].

Sincerely,

KELLY ASSOCIATES MANAGEMENT GROUP LLC

William R. Kelly
President/CEO

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STRA TEGIC PLAN
Three– Year
2022-2025

IN CONSULTATION WITH

KELLY ASSOCIATES MANAGEMENT GROUP
266
OCLAFCO page 2
OC LAFCO 2022-2025 Strategic Plan
August 10, 2022
The Commission
Douglass Davert, Chair
Donald P. Wagner, Vice Chair
Derek J. McGregor, Immediate Past Chair
Lisa Bartlett, County Member
Wendy Bucknum, City Member
James Fisler, Special District Member
Peggy Huang, City Member
Andrew Do, Alternate County Member
Kathryn Freshley, Alternate Special District Member
Lou Penrose, Alternate Public Member
Commission Staff
Carolyn Emery, Executive Officer
Consulting Staff
Kelly Associates Management Group LLC
William R. Kelly, President/CEO
267
OCLAFCO page 3
Introduction
The Orange County Local Agency Formation Commission (OCLAFCO) on November 10, 2021 adopted the 2021 Strategic Plan.

The process to prepare the 2021 plan included the following:

Ĉ Identification of the agency’s strengths, weaknesses, opportunities and threats (S.W.O.T process) Ĉ Adoption of new mission statement:
“OC LAFCO serves Orange County cities, special districts, and the county to ensure effective and efficient delivery of municipal services.”
Ĉ Established Three Year 2021-2024 Goals:
f Optimize external communication.
f Facilitate a continuing dialogue of South County governance options. f Refine and enhance the MSR process.

As of June 30, 2022, the goals and most objectives had been completed.

The Process
With an updated mission statement and substantial completion of the three-year goals and objectives identified in 2021, the Commission retained Kelly Associates Management Group (KAMG) to facilitate the process for the preparation of a new three- year plan 2022-2025. KAMG began the process by introducing the “Steps in the Strategic Planning Process” outlined as follows:

Mission
Monitor
Actions Strategies
Vision Goals
Why does the organization exist
and how does it meet
community needs?
How will progress be evaluated to
insure consistency with mission
and vision?
What specific work plans
and resource allocations will
be required?
What measurable objectives
will be required to meet the
Organization’s goals?
What does the future of the
community and organization
look like?
What needs to be accomplished
in order to fulfill the mission and
achieve the vision?
POLICY
OC LAFCO Commissioners

IMPLEMENTATION
OC LAFCO Staff
268
OCLAFCO page 4
Goal-Setting and Identification
The initial step in OC LAFCO’s most recent strategic planning process included an update to the agency’s S.W.O.T responses.

This was done by KAMG circulating a S.W.O.T questionnaire to Commissioners and staff to assist in the preparation of the new strategic plan. The cumulative summary of the S.W.O.T exercise responses is appended to this document.

At the strategic planning workshop conducted on July 13, 2022 the S.W.O.T responses were displayed for review and discussion by OC LAFCO Commissioners and staff. During the meeting, each commissioner was asked to identify his/ her top five out of 24 goals of the agency over the next three years. Based on this exercise, the following five goals were identified (not in priority order):
1: Succession Planning.
2: Further refine Municipal Service Reviews (MSRs) to develop an abbreviated document for future cycles. 3: Legislative Engagement – build coalitions with CALAFCO, CSAC, CSDA, cities, League of California Cities and LAFCOs statewide on policy issues of mutual interest.
4: Increased Communication with all interest groups – on agenda for organizations such as OCCOG, ACCOC, Special Districts, Regional Chamber/business groups etc.
5: Commission can create more analytics or performance standards for quantifying MSRs. 2022-2025 Work Plan
As directed by the Commission, the five goals identified by the Board have been refined by staff and KAMG to allow for implementation of respective objectives to effectively accomplish each goal. As a note, goals #2 and #5 were combined for efficiency as both are relative to the Commission’s goal to improve the MSR process.

The 2022-2025 Work Plan depicted in the following section clearly defines the agency’s goals, objectives, and schedules over the next three years. As a note, the multi-year work plan may be amended, if warranted, by the Commission. 269
OCLAFCO page 5
GOAL 1:

Staff Development, Retention and Recruitment
Obj. No. Staff Assigned Objective Description Resources Schedule Status

1.1 EO Conduct Classification, Compensation
and Benefits Assessment.

Consultant 2023-2024

1.2 EO/AEO/CC Complete staff assessment and conduct
recruitment for vacancy(ies).

Consultant 2022-2023

1.3 EO/CC Complete cross-training of staff in
budgeting and auditing areas.
2022-2023
270
OCLAFCO page 6
GOAL 2:

Improve Municipal Service Review (MSR) Process For Future MSRs Obj. No. Staff Assigned Objective Description Resources Schedule Status

2.1 All Create MSR schedule that eliminates
the MSR cycles and identifies the next
scheduled comprehensive MSR as five
years from last date of agency MSR and
SOI review.
2022-2025

2.2 EO/AEO/
Analyst
Develop criteria for conducting the
following MSR and SOI review processes
for future reviews:

1. Comprehensive

2. Reconfirm

3. Update
Consultant 2022-2023

2.3 AEO/Analyst Develop and distribute the following
MSR questionnaires:

1. Pre-MSR/SOI – to assess which
process will be conducted.

2. Post-MSR/SOI process – to
receive feedback on the MSR/
SOI process.
2023-2025
2022

2.4 AEO/Analyst Continued use of web-based programs
(fiscal indicators, shared services, and MS
dashboard) to maintain agency data for
MSR determinations.
2022-2025

2.5 AEO/Analyst/CC Present year-end report to the
Commission that provides analytics on
MSR agency feedback and the use of the
agency’s web-based programs.
2023-2025
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OCLAFCO page 7
GOAL 3:

Promote Legislative Engagement
GOAL 4:

Optimize External Communication
Obj. No. Staff Assigned Objective Description Resources Schedule Status

3.1 Commissioners/
EO/AEO
Establish a legislative ad-hoc committee
to develop engagement principles
and guidelines involving external
organizations (CSDA, CSAC, League of CA
Cities, OC League of CA Cities).
2022-2023

3.2 EO/AEO Monitor key legislation of LAFCO-interest
through participation on CALAFCO
legislative and advisory committees.
2022-2025
Obj. No. Staff Assigned Objective Description Resources Schedule Status

4.1 All Conduct annual OC LAFCO 101 sessions
(virtual) to engage agencies and public
to inform of OC LAFCO activities.
2023-2025

4.2 Analyst/CC Conduct visits and disseminate media
kits to OC legislators and stakeholders.
2023-2025

4.3 Analyst Deploy video FAQs on website to inform
OC LAFCO stakeholders.

Consultant 2022

4.4 EO/Analyst Distribute bi-annual news to inform of
OC LAFCO activities.

Consultant 2022-2025
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OCLAFCO page 8
S.W.O.T ANALYSIS
Strengths | Weaknesses | Opportunities | Threats

STRENGTHS
Characteristics of the agency that will allow OC LAFCO to pursue the agency’s goals and be successful.

1. Experienced Staff.

2. Strong Legal Counsel.

3. Very competent executive director with
significant experience in LAFCO.

4. The LAFCO staff seemed to have been well trained
and competent in their roles within the agency.

5. Knowledgeable and forward-thinking staff.

6. Objective and thorough reports.

7. Legislative Updates to Commissioners.

8. The commitment of staff to uphold the OC LAFCO
mission and provide reports that serve the
Commission to make well informed decisions.

9. Commission updates.

10. Leadership.

11. Camaraderie among Commissioners.

12. Commissioners come prepared to meetings.

13. Consistent outcomes due to application of
standardized approach between staff and the
Commissioners.

14. Open door policy between staff and
Commissioners enhances communication,
collaboration and sets a high bar for productivity
and creativity in the decision-making process.

15. Experienced and diverse Board.

16. Governance is strong.

17. We can be an independent/third party oversight
aiding with efficiency and fiscal status.

18. We have a diverse commission that represents all
public agencies.

19. Diverse Commission and ability to make
countywide decisions.

20. Independent and objective agency.

21. Unincorporated Islands program – waiver of
application fees.

22. Diverse Commission and ability to make
countywide decisions.

23. Independent and objective agency.

24. Provide an unbiased analysis of the level of
municipal services provided by local agencies
located within the County through municipal
service reviews.

25. A Commission committed to uphold the CKH
Act and making decisions on what is best for the
County and its residents.

26. OC LAFCO is a forward-thinking agency that
provides reports and programs to further assist
the agencies.

27. Engaged Commissioners who are policy focused in
decision making process.

28. Good relationship with County and clients we
serve.

29. OC LAFCO has no competitors as an organization.

30. Increased stakeholder outreach has been
successful (i.e., Website).

31. Outreach to stakeholders has improved (e.g.,
OCLAFCO.org).

32. Success achieved when process is proceeded by
thorough outreach.

33. Implementation of the new communication plan.

34. Customer Service – Staff assistance with public
inquiries, representatives from agencies, and
application processing.

STRENGTHS (continued)
273
OCLAFCO page 9

35. Communication and External outreach to
agencies and unincorporated communities.

36. OC LAFCO’s ability to collaborate with agencies
to find solutions that will meet the requirements
provided within the CKH Act.

37. Community outreach.

38. Budget is dependable.

39. Revenues are guaranteed.

40. Both staff and Commissioners partake in continued
education to learn the latest best practices and
organizational development techniques.

41. Records Management has significantly improved
(digitized).

42. New web site has provided more information to
elected officials and the community at-large.

43. Innovative tools (shared services, MSR dashboard,
fiscal indicators) to assess agencies and keep data
relevant.

STRENGTHS (continued)

WEAKNESSES
Characteristics of the agency that hinder OC LAFCO’s ability to achieve the agency’s goals.

1. Succession planning.

2. At times, less than market rate compensation has
led to staff turnover.

3. Small employee team limits upward mobility in the
organization and reduces the overall bandwidth of
taking on additional MSR and other types of work.

4. We need to provide a greater level for personal
growth and career enhancement for the Executive
Director and staff members.

5. Milestones delayed (i.e., MSRs).

6. Commissioners could be more collaborative with
each other and stakeholders.

7. The ability to discuss other agencies’ effectiveness.

8. Competing mandated applications – Limited
staffing directs office focus to applications.

9. Misconception that LAFCOs are proactively
seeking to dissolve and consolidate agencies.

10. Misunderstanding the purpose and mandates
associated with municipal service reviews.

11. LAFCOs have a bigger role than just processing
application.

12. Political influences.

13. Lack of knowledge of what LAFCO does/our role.

14. Letting social media influence our decisions.

15. Historically, poor communication with the public.

Improvements have been made the past year
with revised web site and monthly report to
elected officials.

16. The public at-large does not know or understand
the existence and role of the commission.

17. Not clear understanding by external stakeholders
of LAFCO’s purpose and authority.

18. Difficult to inform and make aware 3M resident of
LAFCO’s existence, resources and value.

19. Unincorporated areas don’t understand fiscal
impacts of incorporation.

20. Need to spend more time with special districts so
they understand the LAFCO laws and procedures.

21. We need to be more proactive in promoting the
work and services of OC LAFCO.

22. Reliance on consultants.

23. Budget is very modest.

24. Resources – Consider studying internal and
external resources to improve OC LAFCO’s
economical, effective, and efficient performance…
particularly related to the cost, quality, and
timeliness of MSRs.

25. Limited staff and budget resources.

26. Limitations in OC LAFCO fees changes to member
agencies has a domino effect in not being able to
attract and retain more senior employees with
significant LAFCO experience.

27. Website Analytics – Provide monthly updates
during Commission meetings.
274
OCLAFCO page 10

OPPORTUNITIES
Factors that are available in the environment that can help OC LAFCO achieve the agency’s goals.

1. Succession plan.

2. We will have new commissioners with new
perspectives.

3. Further streamline MSRs to develop an
abbreviated document for future cycles.

4. Improving on the accuracy of the fiscal trends
program.

5. Making sure everyone in the commission is using
the communication plan.

6. Assist agencies that are fiscally challenged
through studies or exploring opportunities.

7. Agencies use of the Shared Services and Fiscal
Indicators to assist with fiscal challenges.

8. OC LAFCO has the opportunity to provide
assistance to agencies by performing studies that
can assist an agency to find solutions to problems.

9. Assist agencies and residents with organizations
and reorganizations in the areas where there are
illogical boundaries.

10. The MSRs can provide agencies with the
information required to make decisions on the
delivery of services.

11. Homelessness.

12. If OC LAFCO can attract new business, it will be
able to augment the financial capacity and allow
for more variety in its service provider model and
gives staff an opportunity to expand the learning
curve.

13. Legislative Engagement – Build coalitions with Cal LAFCO, CSAC, CSDA, cities, League of California
Cites and LAFCOs statewide, on policy issues of
mutual interest.

14. Increased Communication with all interest groups
– on agenda for organizations such as OCCOG,
ACCOC, Special Districts, Regional Chamber/
business groups, etc.

15. Assist stakeholder entities on their
implementation/interest in Shared Services to the
extent that OC LAFCO needs to be involved.

16. Stakeholder Engagement and Transparency
– Study and learn from other LAFCOs and
stakeholders statewide to implement more
effective strategies and tactics for reporting OC
LAFCO performance.

17. Continued rebranding of LAFCO resources to keep
stakeholders engaged.

18. Commission can facilitate better communication
about the differences of county services versus
city services to unincorporated area or county
islands.

19. Commission can create more analytics or
performance standards for quantifying MSRs.

20. Hybrid zoom meetings.

21. Use social media wisely to the advantage of the
commission.

22. Continued use of technology as it continues to
evolve.

23. Seeking out the latest technology to utilize is
good for staff and can expand beyond the basic
service model of the organization.

24. Enhancing the website and messaging out to
current and potential clients reminds people of
what we do and how we can help them in their
decision-making process by providing analytical
data.
275
OCLAFCO page 11

THREATS
Pitfalls looming in the environment that could throw up roadblocks or otherwise keep the OC LAFCO from achieving the agency’s goals.

1. Executive Office retirement or movement to
another organization.

2. Lack of upward mobility with such a small team
means that talented employees will ultimately get
hired away elsewhere.

3. Noncompetitive compensation means that we will
continue to lose good employees to others in the
market.

4. If there is a lack in variation in the day to day work employees will get stagnant and seek out other
job opportunities elsewhere.

5. Leadership and staffing changes leave a void in
the overall organization.

6. South OC issue will be a politically challenging
process due to varied interests.

7. The commission is split on which direction the
commission should proceed in.

8. Not every commissioner is using the
communication plan.

9. If agency input is not balanced, the perception
of LAFCO’s mission and authority may be
misunderstood.

10. Economic impacts on cities and special districts.

11. Environmental threats on the delivery of
municipal services.

12. Rising gas prices.

13. State laws or mandates that omit LAFCOs from a
local government reorganization process.

14. The major threat to the commission is any
legislation that requires the commission to
operate differently or being required to become
involved with government agencies more broadly
than currently required.

15. Ill-informed entities.

16. Misperception that LAFCO is a “rubber stamp”
agency.

17. The perception agencies have of OC LAFCO.

18. The perception of what an MSR is intended
to provide for the Public, Local Agencies, and
Legislature.

19. Meeting space availability.

20. Fiscal instability.

21. Remote work – future pandemic.

22. Cybersecurity and Information Technology
– Like many government entities today, OC
LAFCO should protect the organization – and its
stakeholders – from online vulnerability.

23. Misuse of social media.
276
FY 2021-22 through FY 2027-28
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ
277
ׂ
²ƧȌɈɈßȌǞǐɈȺ
Mayor
District 3
ªȌƦƵȲɈ§ƵȱɐƵȁȌ
Mayor Pro Tem
District 5
wƊȲǲÀƵɈɈƵǿƵȲ
Council Member
District 4
yƵƵǲǞwȌƊɈƊɹƵƮǞ
Council Member
District 2
(Ȍɐǐ!ǞȲƦȌ
Council Member
District 1
City Council
278
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׃
Table of Contents
City Map
A Message from the City Manager
Executive Summary
Mission& V ǞȺǞȌȁ
Goals and Priority Areas
Goal A: Our livable city is well planned, attractive, and safe.

Goal B: Our connected city is engaged, informed, and
technologically current.

Goal C: Our healthy city government is sustainable
and well-run with committed people.

Implementation Matrix
Goal A: Our livable city is well planned, attractive, and safe.

Goal B: Our connected city is engaged, informed, and
technologically current.

Goal C: Our healthy city government is sustainable
and well-run with committed people.
4 5
6 ׈
9 10
11 12
13 14
22 26
279
ׄ
City Map
280
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׅ
Debra Rose
A Message from the City Manager
On behalf of the Lake Forest City Council and City staff, it is my privilege to present the City of Lake Forest’s Strategic Business Plan for Fiscal Years 2021-22 through 2027-28.

ɈǘƵȯǶƊȁƵȺɈƊƦǶǞȺǘƵȺƊƧǶƵƊȲǿǞȺȺǞȌȁƊȁƮɨǞȺǞȌȁ
خ
The plan is focused on three clear long-range goals:
• A livable city that is well planned, attractive, and safe. • A city that is engaged, informed, and technologically current. • A city government that is ﬁscally sustainable and well-run with committed staff.

Implementing this Strategic Plan enables the City to build on past efforts and respond effectively to the needs of its citizens well into the future. ɨƵȲɈǘƵȁƵɮɈseven ȁƵɩȲƵȺǞƮƵȁɈǞƊǶȁƵǞǐǘƦȌȲǘȌȌƮȺɩǞǶǶƦƵƧȌǿȯǶƵɈƵƮ,ƊȁƮɈǘƵ!ǞɈɯ ÀǘǞȺɩǞǶǶȲƵȱɐǞȲƵƊ
ƧȌȁɈǞȁɐƵƮǏȌƧɐȺȌȁȺɈȲƊɈƵǐǞƧǞȁɨƵȺɈǿƵȁɈȺǞȁǞȁǏȲƊȺɈȲɐƧɈɐȲƵƊȁƮȌɈǘƵȲǿɐȁǞƧǞȯƊǶ ȺƵȲɨǞƧƵȺɈǘƊɈȌȁǶɯɈǘƵ!ǞɈɯƧƊȁȯȲȌɨǞƮƵɈȌƵȁȺɐȲƵmƊǲƵIȌȲƵȺɈƧȌȁɈǞȁɐƵȺɈȌƦƵƊƦƵƊɐɈǞǏɐǶ خ
I want to thank you for your ongoing trust and support. We are proud to serve you! Respectfully,
281
׆
Executive Summary
The City of Lake Forest has a long tradition of planning for the community’s future. The City Council and staff developed this new Seven-Year Strategic Plan to set forth the direction of the City government’s work. City Council members, City Commissioners, and City staff were engaged to develop this plan.

Input to the plan was gathered through the City’s biennial Resident & Business Survey, interviews with the City Council, and a Strengths, Weaknesses, Opportunities, and Threats (“SWOT”) exercise facilitated by Mr. William Kelly of Kelly Associates Management group .

The result is a plan containing the City’s vision, mission, goals, strategies, and the implementation plan. Each of the three broad goals contains three priority areas and a set of programs and projects, which are the means to achieve the goals. Some programs and projects can be implemented without new resources while others will require additional budgetary or staff resources. Implementation of the Strategic Plan will occur through the budget process, work planning within City departments, and through the City Manager.

In addition to a biannual update of the Strategic Plan, the City Manager will provide quarterly reports to the City Council and community on progress made on the Strategic Plan. The City Manager also may provide interim updates on speciﬁc projects and strategies as needed.

Lake Forest City Hall
282
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׇ
Clear Long
Range Goals Achievable
Priorities
Effective
Day-to-Day
Operations
283
׈
Mission
T o deliver innovative, high-quality municipal services in a cost-effective manner.

Vision
T o be a safeand ǏǞȁƊȁƧǞƊǶǶɯsustainable
communityƊȁƮ
خ
El Toro Park
284
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׉
Goals and Priority Areas
JȌƊǶȺ
Goal A
Goal B
Goal C
ɐȲǶǞɨƊƦǶƵ!ǞɈɯǞȺ
ة
خ
ɐȲƧȌȁȁƵƧɈƵƮ!ǞɈɯǞȺ
ة
ƊȁƮɈƵƧǘȁȌǶȌǐǞƧƊǶǶɯ
خ
خׁWell-plannedوPurposeful direction in land use and transportation planning create a community future generations will value. خׁSustainableوResponsible ﬁnancial policies and prudent decisions provide short-term ﬁscal stability and long-term ﬁnancial health. خׂAttractiveوInvestment and maintenance in public facilities, infrastructure, and natural resources enhances community aesthetics and supports quality neighborhoods.
خׂWell-runوGood governance and professional management supports the City’s ability to serve the needs of the community. خ׃SafeوExcellent public safety efforts maintain a family-friendly environment and high-quality of life.
خׁ InformedوTransparency about decision making and government performance cultivates public trust.
خׂ EngagedوOutreach, creative events, and programs inspire connection and participation between residents, businesses, and City government. خ׃ Technologically CurrentوInnovative technologies provide an efﬁcient means for the public to remain engaged and access public information. خ׃Committed PeopleوTalented, ethical staff and contractors are vital assets to our organization and essential to effective and efﬁcient City operations.
ɐȲǘƵƊǶɈǘɯ!ǞɈɯ
ǐȌɨƵȲȁǿƵȁɈǞȺ
ٌ
ȲɐȁɩǞɈǘƧȌǿǿǞɈɈƵƮ
خ
§ȲǞȌȲǞɈɯȲƵƊȺ
Veterans Park
285
׀ׁ
Goal A
Well-planned
§ɐȲȯȌȺƵǏɐǶƮǞȲƵƧɈǞȌȁ
ǞȁǶƊȁƮɐȺƵƊȁƮ
ɈȲƊȁȺȯȌȲɈƊɈǞȌȁȯǶƊȁȁǞȁǐ
ƧȲƵƊɈƵƊƧȌǿǿɐȁǞɈɯǏɐɈɐȲƵ
خ
Our livable City is well-planned, attractive, and safe.

Attractive
XȁɨƵȺɈǿƵȁɈƊȁƮ
ǿƊǞȁɈƵȁƊȁƧƵǞȁȯɐƦǶǞƧ
ة
ƊȁƮȁƊɈɐȲƊǶȲƵȺȌɐȲƧƵȺ
ƵȁǘƊȁƧƵȺɨǞȺɐƊǶƧǘƊȲƊƧɈƵȲ
ȌǏɈǘƵƧǞɈɯƊȁƮȺɐȯȯȌȲɈȺ
خ
Safe
0ɮƧƵǶǶƵȁɈȯɐƦǶǞƧȺƊǏƵɈɯ
ٌ
ǏȲǞƵȁƮǶɯƵȁɨǞȲȌȁǿƵȁɈƊȁƮ
ǘǞǐǘ خ
§ȲǞȌȲǞɈɯȲƵƊȺ ²ɈȲƊɈƵǐǞƵȺ
فPrioritize initiatives to reduce trafﬁc congestion, improve mobility, and manage on-street parking.
فEnhance the City’s overall visual character, maintain City assets, and proactively reinvest in southwest Lake Forest.
فDevelop and implement initiatives that leverage changes in retail shopping preferences, telecommuting, and technology.
فConsistently invest in the City’s park system.
فEnsure economic and housing initiatives provide opportunities for all residents.
فEvaluate future options for the City’s infrastructure and utility resources.
فStrategically accomodate State mandates to ensure the highest level of local control, community involvement, and organizational effectiveness.
فProvide civic and recreational opportunities appealing to community demographics.
فMaintain business attraction services to bring new retail stores to the City.
فDevelop and implement initiatives to address negative economic impacts caused by COVID-19.
فMaintain a low crime rate in a cost-effective manner.
فMaintain public safety by engaging community members.
فDevelop comprehensive emergency management strategies that prepare the City to respond effectively to unpredictable events. 286
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׁׁ
Goal B
Informed
ÀȲƊȁȺȯƊȲƵȁƧɯƊƦȌɐɈ
ƮƵƧǞȺǞȌȁǿƊǲǞȁǐƊȁƮ
ǐȌɨƵȲȁǿƵȁɈȯƵȲǏȌȲǿƊȁƧƵ
خ
Our connected City is engaged, informed, and technologically current.

Engaged
ƧȲƵƊɈǞɨƵ
ƊȁƮȯȲȌǐȲƊǿȺ
ǞȁȺȯǞȲƵƧȌȁȁƵƧɈǞȌȁƊȁƮ
ƵȁǐƊǐƵǿƵȁɈƦƵɈɩƵƵȁ
ɈǘƵƧȌǿǿɐȁǞɈɯƊȁƮ!ǞɈɯ
خ
Technologically
Current
XȁȁȌɨƊɈǞɨƵɈƵƧǘȁȌǶȌǐǞƵȺ
ƵȁǘƊȁƧƵȌȲǐƊȁǞɹƊɈǞȌȁƊǶ
ƵǏǏǞƧǞƵȁƧɯƊȁƮǘƵǶȯȌɐȲ
خ
§ȲǞȌȲǞɈɯȲƵƊȺ ²ɈȲƊɈƵǐǞƵȺ
فDevelop programs to expand access to City government.
ف Maintain a communications and marketing strategy, including two-way communication that enhances community engagement. ف Reinvigorate civic life in the post-COVID-19 environment via special events and programs.
ف Ensure that the City’s decision making process remains acce ssible to all residents.
فInvolve the public in measuring the quality and effectiveness in services delivered by the city.
فخ
Lake Forest Civic Center
287
ׁׂ
Goal C
Well-Run
JȌȌƮǐȌɨƵȲȁƊȁƧƵƊȁƮ
ȯȲȌǏƵȺȺǞȌȁƊǶǿƊȁƊǐƵǿƵȁɈ
ȺƊƦǞǶǞɈɯ
ɈȌȺƵȲɨƵɈǘƵȁƵƵƮȺȌǏɈǘƵ
خ
Our healthy City government is sustainable and well-run with committed people.

Sustainable
ªƵȺȯȌȁȺǞƦǶƵǏǞȁƊȁƧǞƊǶ
ȯȌǶǞƧǞƵȺƊȁƮȯȲɐƮƵȁɈ
ٌ
ɈƵȲǿǏǞȺƧƊǶȺɈƊƦǞǶǞɈɯƊȁƮ
ɈƵȲǿǏǞȁƊȁخ
Committed People
ÀƊǶƵȁɈƵƮȺɈƊǏǏƊȁƮ
ƧȌȁɈȲƊƧɈȌȲȺƊȲƵɨǞɈƊǶƊȺȺƵɈȺ
ɈȌȌɐȲȌȲǐƊȁǞɹƊɈǞȌȁƊȁƮ
ƵȺȺƵȁɈǞƊǶɈȌƵǏǏƵƧɈǞɨƵƊȁƮ
ƵǏǏǞƧǞƵȁɈ!ǞɈخ
§ȲǞȌȲǞɈɯȲƵƊȺ ²ɈȲƊɈƵǐǞƵȺ
فImplement Financial Management and Budgetary Policy to maintain the ﬁnancial integrity of the City.
فOperate according to policy on cost recovery.
فAnalyze major programs to identify potential cost savings and manage future costs.
فImplement modern workplace policies that cultivate an
effective, efﬁcient workforce.
فContinuously assess the optimal stafﬁng levels required to provide in-demand services to residents and businesses. فContinuously improve our effectiveness in procuring and managing ﬁnancially sustainable contract services.
فProfessionally develop and retain staff to match skills with organizational and community needs.

Baker Ranch Community Park
288
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׃ׁ
Implementation Matrix
²ɈȲƊɈƵǐǞƧ§ǶƊȁ
289
ׁׄ
Initiative
#/Title Initiative/Project Description
ׁح
׃ح
ׄح
ׅح
ׂ׆ح
Lake Forest
Transportation
Mitigation
Program
ׂح
wƵƊƮȌɩȺ
TraǏǏǞƧ
Mitigation
Program
Foothill
Circulation
Phasing Plan
New Trafﬁc
Circulation/
Mobility Projects
Trafﬁc Signal
Synchronization
Maintain “Good”
Pavement Condition
of the City’s Roads
Complete infrastructure projects that increase mobility and reduce congestion with Local IȌȲƵȺɈÀȲƊȁȺȯȌȲɈƊɈǞȌȁMitigation Ǐundspaid for by developments. - Lake Forest Rd & Rancho Pkwy (LFTM) (#PW 2020-06)
- El Toro Rd & Portola Pkwy/Santa Margarita Pkwy (LFTM) (# PW 2019-03) - Bake Pkwy & Irvine Blvd/Trabuco Rd (LFTM) (# PW 2019-02) - Bake Pkwy & Jeronimo Rd (LFTM) (# PW 2020-04)
- Lake Forest Dr & Jeronimo Rd (LFTM) (# PW 2020-03)
- Lake Forest Dr & Rockﬁeld Blvd (LFTM) (# PW 2019-06)
- Los Alisos & Rockﬁeld (LFTM) (# PW 2022-11)
- Lake Forest Dr & I-5 (LFTM/NITM) (# PW 2028-10)
- Bake Pkwy & Rockﬁeld - not within City-limits (LFTM) (# PW 2028-11) Utilize developer-funded Foothill Circulation Phasing Plan (FCPP) to make various transpȌȲɈƊɈǞȌȁ improvements that reduce congestion and improve trafﬁc ﬂow. - Los Alisos Blvd/Muirlands Blvd Intersection Improvements (# PW 2019-07) - Jeronimo Rd Widening at El Toro Rd (# PW 2019-08)
- El Toro Rd Raised Medians from Jeronimo Rd to Trabuco Rd (# PW 2020-07) Projects which increase mobility and implement new approaches to trafﬁc circulation. - Protective Permissive Left Turn Project (# PW 2023-03) - Audible Pedestrian Signals (APS) (# PW 2023-0ׂ)
Increase Bike Lanes in Lake Forest (# PW 2020-05B)
- Trabuco Rd Ascension Cemetery Left Turn Holding Pocket (# PW 2025-02) Utilize grants and other transpȌrɈation funds to complete traffic signal synchronization projects that provide more efficient traffic flow. - Alton Pkwy (# PW 2020-16)
- Portola Pkwy (# PW 2020-15)
- Rockﬁeld Blvd (# PW 2023-04)
Use Meadows Trafﬁc Improvement Funds (MTIF) to manage impacts related to the Meadows development.
- Bake Pkwy/Bafﬁn Bay Intersection Improvements (# PW 2020-19) - Bake Pkwy/Toledo Way Intersection Improvements (# PW 2020-18) Construct pavement rehabilitation projects to repair and maintain the quality of the roads (# PW 2021-05A/B, # PW 2022-05A/B, # PW 2023-05A/B, # PW 2024-05A/B, # PW 2025-05A/B, # PW 2026-05A/B, # PW 2027-05A/B, # PW 2027ٌ8-05A/B).

Goal A Our livable City is well-planned, attractive, and safe.

Priority Area 1 - Well-Planned: Purposeful direction in land use and transportation planning create a community future generations will value.

Strategy (a): Prioritize initiatives to reduce trafﬁc congestion, improve mobility, and manage on-street parking.
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׁׅ
Lead
Department
Budget
Impact Fund Estimated Completion Date
Public
Works
Public
Works
Public
Works
Public
Works
Public
Works
Public
Works
$8,948,400
$2,475,000
$5,025,000
$1,415,000
$525,000
$28,000,000

LFTM/NITM
Meadows
Trafﬁc
Improvement
Funds
General Fund/
CDBG/M2/SB1
Gas Tax,
AQMD, and
Grants
Measure M2 Fair
Share/ Gas Tax - Road
Maintenance
Rehabilitation Account
/ Gas Tax / City Road
Infrastructure Fund
FCCP
FY 2021-22 - FY 2025-26
FY 2021-22 - FY 2025-26
FY 2021-22 - FY 2023-24
FY 2021-22 - FY 2027-28
FY 2022-23 - FY 2023-24
FY 2022-23 - FY 2023-24
290
׆ׁ
Initiative
#/Title Initiative/Project Description
׃׆ح
׆ح
ׇح
׈ح
׀ׁح
ׁׁح
ׁׂح
ׄ׆ح
׃ׁح
Arterial Median
Improvement
Project
Permit Parking
Software
General Plan
Implementation
Mixed-Use
Zoning
Housing Element
Update
Mandatory
Food Waste &
Commercial
Recycling
Mountain View
Affordable Housing
Project
Retail Attraction
Housing
Mandates
Installation of raised hardscaped medians would improve trafﬁc safety. These locations include Trabuco Rd north of El Toro Rd, and on Rockﬁeld Blvd south of Lake Forest Dr (# PW 2022-02).

Prepare objective design standards and development requirements to implement the Mixed-Use land designations included in the General Plan Update 2040. (ƵɨƵǶȌȯƊȁƮǞǿȯǶƵǿƵȁɈȯȲȌǐȲƊǿȺɈȌȯȲȌǿȌɈƵƵȁƵȲǐɯƧȌȁȺƵȲɨƊɈǞȌȁǞȁƧȌȁȺɈȲɐƧɈǞȌȁ §ȲȌƧɐȲƵƊƧȌȁȺɐǶɈƊȁɈɈȌƊȺȺǞȺɈɩǞɈǘǞǿȯǶƵǿƵȁɈǞȁǐƵȁƵȲǐɯ خ
Utilize grant funding to update required General Plan Element that provides analysis of housing needs and identiﬁes sites to accommodate housing for all residents regardless of income (RHNA).

Develop SB 1383 compliant program. Provide organic waste collection for all residents and businesses, establish edible food recovery program, conduct public outreach and education, adopt an organics diversion ordinance with enforceable mechanisms, and adopt procurement policy that includes the use of recycled organics materials.

Work with City consultant(s) to retain and enhance business attraction services.

Mobile app to efﬁciently administer and enforce permit parking while improving resident experience for annual renewal and guest passes.

Develop public engagement plan related to the National CORE affordable housing development.

ƊȁƮȯȲȌǐȲƊǿȺɈȌƧȌǿȯǶɯɩǞɈǘ²ɈƊɈƵǿƊȁƮƊɈƵȺ
خ
Strategy (a): Prioritize initiatives to reduce trafﬁc congestion, improve mobility, and manage on-street parking.

Strategy (b): Develop and implement initiatives that leverage changes in retail shopping preferences, telecommuting, and technology.

Strategy (c): Ensure that economic and housing initiatives provide opportunities for all residents.

Strategy (d): Strategically accommodate State mandates to ensure the highest level of local control, community involvement, and organizational effectiveness.

Strategy (e): Maintain business attraction services to bring new retail stores to the city. ²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׇׁ
Lead
Department
Budget
Impact Fund Estimated Completion Date
Public
Works
Public
Works
Public
Works/
Management
Services
Management
Services/
City Manager
Community
Development
Community
Development
Community
Development
Community
Development
Economic
Development
$225,000
$10,000
$75,000
$94,000
$15,000
$20,000
$3,000
Staff
Resources
$120,000
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
Gas Tax
General Fund
(Reimbursed through
LEAP Grant)
General Fund
(Reimbursed through
LEAP Grant)
FY 2023-24
FY 2022-23
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
On-going
291
׈ׁ
Initiative
#/Title Initiative/Project Description
ׅ׆ح
ׁׄح
ׁׅح
׆ׁح
ׇׁح
׈ׁح
׉ׁح
׆׆ح
Restaurant
Recovery
Citywide Street
Sign Refresh
Southwest
Lake Forest
Neighborhood
Task Force
Noise Ordinance
Update
Arbor Mini Parks
Park
Enhancements
Neighborhood
Park Renovations
- Phase 3
Open for Business
Campaign
Develop funding program to assist restaurants with economic recovery.

Create new street name sign design and replace street signs citywide, beginning in southwest Lake Forest (# PW 2021-06 and # PW 2022-06).

Interdepartmental task force to address neighborhood concerns identiﬁed in the January 2021 Community Satisfaction Study.

Renovate Lake Forest Park and the Nature Park based upon a community input process (# PW 2023-06).

Develop and implement noise mitigation strategies to protect residents from excessive exposure to noise.

Reactivate Arbor Mini Parks through new uses, perimeter fencing, and new landscape (# PW 2019-17).

Facilitate outdoor dining through local zoning and programs that support and promote open-air, take-out, and delivery options.

Strategy (f): Develop and implement initiatives to address negative economic impacts caused by COVID-19.

Strategy (a): Enhance the City’s overall visual character, maintain City assets, and proactively reinvest in Lake Forest.

Strategy (b): Consistently invest in the City’s park system.

Priority Area 2 - Attractive: Investment and maintenance in public facilities, infrastructure, and natural resources enhances visual character of the City and supports quality neighborhoods.

Complete various signiﬁcant maintenance or enhancement projects to retain the high quality of the City’s park facilities.
- Playground Resurfacing Projects (# PW 2021-08)
- Heroes Park Electrical Repairs and LED/Efﬁciency Upgrades (# PW 2022-08) - El Toro Lodge Pole Fencing Repairs (# PW 2021-09)
- Park Gazebo Repair & Replacement (# PW 2022-09)
- Replace synthetic ﬁelds installed in 2014 at the Lake Forest Sports Park (# PW 2024-02) ²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׉ׁ
Lead
Department
Budget
Impact Fund Estimated Completion Date
Economic
Development
City Manager/
Community
Development/
Public Works
Economic
Development
Community
Development
Public
Works
Public
Works
Public
Works
Staff
Resources
$70,000
$820,000
$600,000
$2,220,000
$75,000
TBD/$300k
Staff
Resources
General Fund/
TBD
General Fund/
CDBG/Prop 68
Park
Development Fund
General Fund
General Fund
General Fund
General Fund
General Fund
FY ׃ׂׂׂٌ׀ׂ
FY 2023-24
FY 2024-25
FY 2021-22
FY 2021-22
FY 2021-22 - FY 2024-25
FY 2021-22
FY 2022-23
Public
Works
292
׀ׂ
׀ׂح
ׂׄح
ׇׂح
ׁׂح
ׂׅح
׈ׂح
׈ׂح
׉ح
׆ׂح
ׂׂح
׃ׂح
Assess Efﬁciency
Updates to
Lighting Citywide
Increase Law
Enforcement Contract
by Adding Two
Deputy Sheriffs
Neighborhood
Watch
Revamp Lake
Forest Leadership
Academy
Community Choice
Aggregation
Community
Engagement Project
Lake Forest
Geofence
Business Watch
Broadband
Feasibility Study
“Stay Safe Lake
Forest” Campaign
Craft Show and
Art Fair
Offer Recreation that
Reﬂects the Interests
of the Community
Comprehensively assess lighting at City facilities to determine if LED retroﬁtting can provide cost savings and increase light coverage.

Add two full-service deputies to the City’s contract with OCSD (ﬁrst year costs: $800,000, ongoing costs: $600,000.

Increase participation and effectiveness of the neighborhood watch program.

Implement the City’s CCA Community Engagement Plan to help determine the City’s interest in pursuing CCA.

Expand the use of the City’s Automatic License Plate Reader System Cameras by adding cameras at major arterial intersections or high trafﬁc areas near city borders.

Work in conjunction with OCSD to bolster/enhance OCSD’s business watch program for Lake Forest.

Launch an updated version of the Lake Forest Leadership Academy that includes modules for neighborhood watch, business watch, and homelessness.

Continue public education initiatives to maintain a low crime rate in the City such as ²ɈƊɯSafe Lake Forest, a series of community seminars to educate residents on crime prevention/safety.

Identify emerging recreation, sports, and activities that interest the community, such as pickleball tournaments.

Procure consultant to conduct feasibility study related to a City-led broadband initiative.

Strategy (c): Evaluate future options for the City’s infrastructure and utility resources.

Strategy (a): Maintain a low crime rate in a cost-effective manner.

Strategy (b): Maintain public safety by engaging community members.

Strategy (d): Provide civic and recreational opportunities appealing to community demographics.

Transform Community Center into boutique for crafts by Lake Forest artists and crafters.

Priority Area 3 - Safe: Excellent public safety efforts maintain a family-friendly environment and high quality of life.

Initiative
#/Title Initiative/Project Description
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׁׂ
City Manager/
Economic
Development
Police Services
City Manager
Management
Services
Management
Services
Management
Services
Management
Services
$20,500
$80,000
$3,000
TBD
TBD
$85,000 (est.)
$0
$565,000
$800,000
Staff
Resources
Staff
Resources
General Fund
General Fund
General Fund
General Fund/
TBD
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
FY 2023-24
TBA
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
FY 2022-2023
FY 2021-22
FY 2021-22
FY 2021-22 & FY 2022-23
Public
Works
City Manager
Police Services
Police Services
Lead
Department
Budget
Impact Fund Estimated Completion Date
293
ׂׂ
׀׃ح
ׁ׃ح
ׂ׃ح
Local Hazard
Mitigation Plan
City AM
1690 Radio
Comprehensive
Emergency
Management Plan
Identify risks and vulnerability associated with natural disasters and develop long-term strategies for protecting people and property from future hazards.

Establish AM radio station to communicate with residents during wildﬁres or other emergency events. Emphasis on emergency preparedness.

Procure consultant services to produce a new, comprehensive emergency management plan.

Strategy (c): Develop comprehensive emergency management strategies that prepare the City to respond effectively to unpredictable events.

Initiative
#/Title
Initiative
#/Title
Initiative/Project Description
Initiative/Project Description
׃׃ح
ׄ׃ح
ׅ׃ح
׆׃ح
ׇ׃ح
׈׃ح
Explore Emerging
Technology
to Increase
Communication
New Website
2021 4th of July
Fireworks Show &
Summer Concert
Series
Lake Forest Sports
Park Tournaments
Resident-Led
Emergency
Preparedness
Literature and
Culture
Explore the use of new technologies to communicate with residents and businesses to encourage two-way connectivity.

Bring the community together to celebrate the 4th of July with a concert and ﬁreworks show and reinstitute the City’s summer concert series.

Engage the community with a storytelling festival, author presentations for all ages, and reading contests.

Train graduates of CERT basic class to lead CERT program and launch Lake Forest amateur radio operators bimonthly meeting.

Increase number of tournaments from 11 to 24 annually.

Launch new City website.

Goal B
Our connected city is engaged, informed, and
technologically current.

Priority Area 1 - Engaged: Outreach, creative events, and programs inspire connection and engagement between the community and City government.

Strategy (a): Maintain a communications and marketing strategy, including two-way communication that enhances community engagement.

Strategy (b): Reinvigorate civic life in the post-COVID-19 environment via special events and programs.
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ
׃ׂ
75,000
$3,000
$250,000
General Fund
General Fund
General Fund/
TBD
FY 2022-23
On-going
FY 2021-22
Community
Development
Management
Services
Management
Services
Management
Services
Management
Services
Management
Services
Management
Services
Management
Services
Management
Services
Lead
Department
Lead
Department
Budget
Impact
Budget
Impact
Fund
Fund
Estimated Completion Date
Estimated Completion Date
Staff
Resources
$65,000
$154,000
$5,000
TBD
$500
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
294
ׂׄ
׉׃ح
׃ׄح
ׄׄح
׀ׄح
ׁׄح
ׂׄح
Accessibility
Enhancements
Broadcast City
Commission
Meetings on LFTV
Expand “Pop Up”
City Hall
Lake Forest TV
Performing Arts
Advisory Committee
Redistricting
Expand and preserve access to City Hall by analyzing how Census data may impact resident communication, increase disability accommodations, and provide other services to ensure broad community participation.

Broadcast all commission meetings on LFTV, enabling all residents to view proceedings on COX ch. 851.

Transition from ad hoc “Pop Up City Hall” events to a regularly scheduled “Pop Up City Hall” allowing for promotion via the Leaﬂet.

Launch Lake Forest TV and develop content to increase opportunities for residents to learn about the City’s decision-making processes.

Form an advisory committee to the Community Services Commission to build upon the use ȌǏthe City’s Performing Arts Center.

Engage the community in the redistricting process based upon 2020 US Census.

Strategy (c): ȺƮƵƧǞȺǞȌȁǿƊǲǞȁǐȯȲȌƧƵȺȺȲƵǿƊǞȁȺƊƧƧƵȺȺǞƦǶƵɈȌƊǶǶ خ
Strategy (a): خ
Priority Area 2 - Informed: ÀȲƊȁȺȯƊȲƵȁƧɯƊƦȌɐɈƮƵƧǞȺǞȌȁǿƊǲǞȁǐƊȁƮ خ
Initiative
#/Title Initiative/Project Description
ׅׄح
׆ׄح
Measure Quality of
Services and Programs
Lake Forest Leadership
Academy -
Graduate Course
Continue biennial Community Satisfaction Study and utilize new technology to perform ad hoc surveys as needed.

Develop a graduate/continuing studies version of the Lake Forest Citizens’ Leadership Academy with an increased focus on important issues and to maintain resident “goodwill ambassadors.”
Strategy (b): Involve the public in measuring the quality and effectiveness in services delivered by the city.
ׇׄح
׈ׄح
׉ׄح
Asset Inventory &
Management System
Financial
Management System
Document Imaging
and Storage System
The City will procure a consultant to conduct an inventory and condition assessment of city owned assets in developǞȁǐan Asset Management Plan.

Procure a new document retention system to increase public access to City records.

Procure and implement a financial management system (ERP) to modernize ﬁnancial practices and provide opportunities for resident self-service access to City services.

Strategy (a): Enhance efﬁciencies and services through technology.

Priority Area 3. Technologically Current: Innovative technologies enhance organizational efﬁciency and help our community.
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׂׅ
City Clerk
City Clerk
Management
Services
Management
Services
Management
Services
Management
Services
TBD
TBD
$3,900
$70,000
$1,000
$2,000
General Fund
General Fund
General Fund
General Fund
General Fund
General Fund
FY 2023-24
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
FY 2021-22
Lead
Department
Budget
Impact Fund Estimated Completion Date
Management
Services
Management
Services
$48,900
$1,200
General Fund
General Fund
FY 2022-23
FY 2022-23
General Fund
Finance
Finance
City Clerk
$450,000
$100,000
$300,000 General
Fund/TBD
General
Fund/TBD
FY 2022-23
FY 2022-23
FY 2022-23
295
׆ׂ
Initiative
#/Title Initiative/Project Description
׀ׅح
ׁׅح
Strategy for “One
Time” Revenue
General Fund
Risk Reserve
Policy Update
Develop a strategy or policy with Audit Committee for determining how to appropriate one-time revenues (development fees, stimulus funds, etc.).

Update the City’s risk-based reserves policy to reﬂect long-term strategic planning goals.

Goal C
Our healthy city government is sustainable and well-run with committed people.

Priority Area 1 - Sustainable: Responsible ﬁnancial policies and prudent decisions provide short-term ﬁscal stability and long-term ﬁnancial health.

Strategy (a): Implement Financial Management and Budgetary Policy to maintain the ﬁnancial integrity of the city.
ׂׅح
׃ׅح
Biennial Fee
Study
Implement “1%
Review”
Conduct a comparative analysis of City of Lake Forest fees vs fees chargeƮ for similar services Ǟȁ nearby communities.

Annually review certain services that obligate at least 1% of General Fund budget.

Strategy (b): Operate according to policy on cost recovery.

Strategy (c): Analyze major programs to identify potential cost savings and manage future costs.
ׅׄح
׆ׅح
ׅׅح
ׇׅح
Comprehensive
Update to
Purchasing Policies
Contract Stafﬁng
Policy
Modernize
Document
Retention Policies
Implement
Telecommuting
Policy
Update the City’s Purchasing Policies and increase staff training to accurately identify contract scope to match services needed. Improve procurement document strategy.

Develop and implement policies that preserve the City’s ability to effectively manage services provided by contract staff.

Modernize the City’s document retention policies. Emphasize storage of electronic records over hard copies to preserve physical space. Update retention timelines.

Develop and implement a policy to facilitate telecommuting for select job classiﬁcations. Policy will include performance measurement framework.

Priority Area 2 - Well-Run: JȌȌƮǐȌɨƵȲȁƊȁƧƵƊȁƮȯȲȌǏƵȺȺǞȌȁƊǶǿƊȁƊǐƵǿƵȁɈ خ
Strategy (a): Continuously improve our effectiveness in procuring and managing ﬁnancially sustainable contract services.

Strategy (b): Implement modern workplace policies that cultivate an effective, efﬁcient workforce.
²ɈȲƊɈƵǐǞƧ ɐȺǞȁƵȺȺ§ǶƊȁ ׇׂ
City Manager/
Finance
Finance
Lead
Department
Budget
Impact Fund Estimated Completion Date
Staff
Resources
Staff
Resources
General Fund
General Fund
FY 2021-22
FY 2021-22
Finance
City Manager
$49,500
Staff
Resources
General Fund
General Fund
FY 2020-21 - FY 2024-25
FY 2021-22, On-going
City Manager
City Clerk
ش
wƊȁƊǐƵǿƵȁɈ
²ƵȲɨǞƧƵȺ
Staff
Resources
Staff
Resources
Management
Services
TBD
TBD
General Fund
General Fund
General Fund
General Fund
FY 2021-22
FY 2022-23
FY 2024-25
FY 202ׁ2ׂ
296
28 SP#58
Lake Forest
Employee
Retention Program
Develop programs related to employee retention, including “stay” interviews, “ladder” promotion opportunities, and an employee satisfaction survey.

Strategy (a): Professionally develop and retain staff to match skills with organizational and community needs.

Priority Area 3- Committed People: Talented staff and contractors are vital assets to our organization and essential to effective and efﬁcient City operations.

Initiative
#/Title Initiative/Project Description
SP#59
SP#60
SP#61
Join Team Lake
Forest
Develop
Lake Forest
Succession Plan
Biennial
Classiﬁcation and
Compensation Plan
Market Lake Forest as a top notch employer, emphasizing modern facilities, innovate public sector compensation system, and succession planning.

Human Resources to implement a biennial classiﬁcation and compensation study to (a) assess the stafﬁng needs of the organization and (b) meet those stafﬁng needs with competitive compensation plans.

Human resources to develop a comprehensive succession plan that includes training, academy courses, job shadowing, etc.

Strategy (b): Continuously assess the optimal stafﬁng levels required to provide in- demand services to residents and businesses.

City of Lake Forest | Strategic Business Plan 29
$5,000Management
Services General Fund FY 2021-22
Management
Services
Management
Services
Management
Services
Lead
Department
Budget
Impact Fund Estimated Completion Date
Staff
Resources
Staff
Resources
$30,000 (for
full study)
General Fund
General Fund
General Fund
FY 2020-21
FY 2022-23
FY 2022-23 & FY 2024-25
297
Firm Summary of Services Described in the Proposal Proposed Amount(s) Kelly Associates
Management Group
Kelly Associates Management Group ( “KAMG”) will conduct a Strengths, Weaknesses, Opportunities, and Threats (“SWOT”) analysis with each Councilmember and interview the Councilmembers to further understand their responses. KAMG will detail the responses with the City Manager and staff.

KAMG will lead two open study sessions . One session will develop overarching goals on what the City wants to achieve. The second session will help identify specific objectives to achieve these goals. Thereafter, KAMG will be available to assist staff in presenting the document to the City Council for approval. The proposed Strategic Plan will extend from one to five years with overarching goals and specific objectives to achieve those goals.
$20,000
(Flat Rate for Strategic Plan that includ and
includes reasonable reimbursable
expenses).

Jacob Green &
Associates
Separated into two services:

Service 1 - Jacob Green & Associates (“JGA”) will meet with the City Council and Department Directors to identify goals and strategic priorities. JGA will conduct open session training on the Council/Manager government form a nd will then facilitate a meeting with the City Council and staff. JGA will draw from these conversations to develop a high -level strategic plan and will support staff with Council approval ($23,800) - does not include Strategic Workplan.

Service 2 - JGA will meet with staff to identify tasks, timelines, and resource allocations to implement identified goals from Service 1. This will be incorporated into a workplan/scheduler with an option for a comprehensive workplan online dashboard utilizing “Monday” or “Smartsheet” ($48,500 total / $41,000 without online dashboard).
$72,300
(For Strategic Plan and Strategic Workplan,
plus online dashboard).
$63,800
(For Strategic Plan and Strategic Workplan
without the online dashboard).
$23,800
(For Strategic Plan without Strategic
Workplan).
298
Baker Tilly
(Formerly
Management
Partners)
Baker Tilly ( “BT”) will conduct a kickoff meeting with staff to create workplan schedule, establish roles, and share information . BT will review City documents for context, interview the City Council individually , and gather information on organizational strengths, challenges, opportunities, threats (“SCOT”), goals, and priorities. A SCOT questionnaire will be distributed to department directors, and BT will review results from the city survey. BT will then facilitate a one -day strategic planning workshop, draft the strategic plan document, and dra ft the implementation action plan (e.g., key tasks to implement strategic plan ). Once completed, City staff will bring the Strategic Plan and implementation action plan to the City Council for approval. An optional implementation action plan workshop can be conducted for an additional $6,250.
$59,500
(Strategic Plan and Implementation Action
Plan without additional workshop).
$62,750
(Strategic Plan and Implementation Action
Plan plus additional workshop).

299
Agenda Item
City Council
Item #: 8.1. 11/28/2023 File #: 23-0782
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Fiscal Year 2023-24 General Fund First Quarter Budget Report.

2. SUMMARY
A presentation providing a first quarter budget update for Fiscal Year 2023-24, focusing on the General Fund.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

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

City of Orange Printed on 11/21/2023Page 1 of 1
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300
Agenda Item
City Council
Item #: 8.1. 11/28/2023 File #: 23-0782
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director

1. SUBJECT
Fiscal Year 2023-24 General Fund First Quarter Budget Report.

2. SUMMARY
A presentation providing a first quarter budget update for Fiscal Year 2023-24, focusing on the General Fund.

3. RECOMMENDED ACTION
Receive and file.

4. FISCAL IMPACT
None.

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

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301
Agenda Item
City Council
Item #: 9.1. 11/28/2023 File #: 23-0787
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Mike Vigliotta, City Attorney

1. SUBJECT
Introduction and First Reading of Ordinance No. 14-23 adding Chapter 2.13 to Title 2 of the Orange Municipal Code Related to Lobbyist Registration and Reporting.

2. SUMMARY
Ordinance No. 14-13 adds registration and reporting requirements for lobbyists, as defined, and other related provisions, including those related to exemptions, prohibitions, and enforcement.

3. RECOMMENDED ACTION
Introduce and conduct First Reading of Ordinance No. 14-23. An Ordinance of the City Council of the City of Orange adding Chapter 2.13 to Title 2 of the Orange Municipal Code Related to Lobbyist Registration and Reporting.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 4: Provide Outstanding Public Service
b: Provide facilities and services to meet customer expectations. d. Foster an environment of leadership, teamwork, and innovation.

6. DISCUSSION AND BACKGROUND
At the October 10, 2023, City Council meeting, the Orange City Council considered the introduction and first reading of Ordinance No. 14-23. During City Council discussion, the City Council expressed concerns with select ordinance provisions and its potential implications. In response, a City Council Ad-Hoc Committee (comprised of Mayor pro tem Barrios, Councilmember Dumitru, and Councilmember Tavoularis) was formed to revise the proposed ordinance for the entire City Council’s consideration at a future City Council meeting.

While the revised ordinance retains the similar intent of promoting transparency, the Ad-Hoc Committee is proposing additional language, clarifications, and omissions that will alleviate misinterpretations as well as administrative time and oversight. Attached to the staff report is a redlined document further detailing the proposed changes; however, provided below is a summary of each change:

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Item #: 9.1. 11/28/2023 File #: 23-0787
§ Section 2.13.020 - Definitions:
§ “CityRepresentative”will also include personnel that are required to file a Fair Political Practices Commission Form 700.
§ Section 2.13.030 - Registration and Annual Reporting Required:
§ Clarifies that a Lobbyist (as defined) who engages in Lobbying Activities (as defined) shall register with the City Clerk on a per project basis. § Subsection A.2 removes the verbiage, “a written statement containing.” § Subsection A.2.d clarifies reporting requirements for gifts, contributions, and behested payments by identifying the reporting threshold as over $250. § Subsection C clarifies Lobbyist Registration renewal forms must be submitted within 30 days.
§ Subsection D removes the word “without” and replaces with “prior to.” § Subsection E (Requirement that a person lobbying on behalf of someone and communicating with a City Representative shall have that person’sconsent) has been deleted in its entirety.
§ Subsection G (Requirement that a Lobbyist submit a report naming City Representatives contacted at least eight days prior to a public hearing) has been deleted in its entirety.
§ Section 2.13.040 - Quarterly Activity Report:
§ Section has been deleted in its entirety.
§ Section 2.13.050 - Exemptions:
§ Subsection C: Clarifies that a person hired by the City to conduct lobbying activities for City projects are exempt.
§ Subsection F (A person submitting a competitive bid, providing a written response to a request for proposal or qualification, participating in an oral interview, or negotiating the terms of a written agreement is exempt) has been removed in its entirety. § Section 2.13.070 - Enforcement:
§ Subsection A: Clarifies that violations will be charged as an infraction (without the possibility of a misdemeanor) and removes language placing this determination at the discretion of the citing officer or City Attorney.
§ Subsection C: Removes “convicted” and replaces with “in violation.” § Subsection D (Residents have standing to bring a civil action for enforcement) is City of Orange Printed on 11/21/2023Page 2 of 3
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Item #: 9.1. 11/28/2023 File #: 23-0787
§ Subsection D (Residents have standing to bring a civil action for enforcement) is removed in its entirety.
§ Additional Section - Section 4:
§ This is added to clarify that City Representatives (as defined) cannot register as a lobbyist or engage in lobbying activities within one year after leaving a position of employment and elected or appointed office with the City of Orange.

7. ATTACHMENTS
· Ordinance No. 14-23 Clean Version
· Ordinance No. 14-23 Redlined Version
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Agenda Item
City Council
Item #: 9.1. 11/28/2023 File #: 23-0787
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Mike Vigliotta, City Attorney

1. SUBJECT
Introduction and First Reading of Ordinance No. 14-23 adding Chapter 2.13 to Title 2 of the Orange Municipal Code Related to Lobbyist Registration and Reporting.

4. FISCAL IMPACT
None.

5. STRATEGIC PLAN GOALS
Goal 4: Provide Outstanding Public Service
b: Provide facilities and services to meet customer expectations. d. Foster an environment of leadership, teamwork, and innovation.

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305
Item #: 9.1. 11/28/2023 File #: 23-0787
§ Section 2.13.020 - Definitions:
§ “CityRepresentative”will also include personnel that are required to file a Fair Political Practices Commission Form 700.
§ Section 2.13.030 - Registration and Annual Reporting Required:
§ Clarifies that a Lobbyist (as defined) who engages in Lobbying Activities (as defined) shall register with the City Clerk on a per project basis. § Subsection A.2 removes the verbiage, “a written statement containing.” § Subsection A.2.d clarifies reporting requirements for gifts, contributions, and behested payments by identifying the reporting threshold as over $250. § Subsection C clarifies Lobbyist Registration renewal forms must be submitted within 30 days.
§ Subsection D removes the word “without” and replaces with “prior to.” § Subsection E (Requirement that a person lobbying on behalf of someone and communicating with a City Representative shall have that person’sconsent) has been deleted in its entirety.
§ Subsection G (Requirement that a Lobbyist submit a report naming City Representatives contacted at least eight days prior to a public hearing) has been deleted in its entirety.
§ Section 2.13.040 - Quarterly Activity Report:
§ Section has been deleted in its entirety.
§ Section 2.13.050 - Exemptions:
§ Subsection C: Clarifies that a person hired by the City to conduct lobbying activities for City projects are exempt.
§ Subsection F (A person submitting a competitive bid, providing a written response to a request for proposal or qualification, participating in an oral interview, or negotiating the terms of a written agreement is exempt) has been removed in its entirety. § Section 2.13.070 - Enforcement:
§ Subsection A: Clarifies that violations will be charged as an infraction (without the possibility of a misdemeanor) and removes language placing this determination at the discretion of the citing officer or City Attorney.
§ Subsection C: Removes “convicted” and replaces with “in violation.” § Subsection D (Residents have standing to bring a civil action for enforcement) is City of Orange Printed on 11/21/2023Page 2 of 3
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Item #: 9.1. 11/28/2023 File #: 23-0787
§ Subsection D (Residents have standing to bring a civil action for enforcement) is removed in its entirety.
§ Additional Section - Section 4:
§ This is added to clarify that City Representatives (as defined) cannot register as a lobbyist or engage in lobbying activities within one year after leaving a position of employment and elected or appointed office with the City of Orange.

7. ATTACHMENTS
· Ordinance No. 14-23 Clean Version
· Ordinance No. 14-23 Redlined Version
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308
309
310
311
312
ORDINANCE NO. 14-23

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ORANGE ADDING CHAPTER 2.13 TO
TITLE 2 OF THE ORANGE MUNICIPAL CODE

RELATED TO LOBBYIST REGISTRATION AND

REPORTING
WHEREAS, in the interest of providing additional transparency in governmental decision-making, persons or firms that try to influence City decisions (engage in lobbying activities) should be required to register with the City and disclose certain information to the public; and
WHEREAS, the disclosure of the full range of lobbying activities engaged in by these persons or firms is essential to maintaining and preserving community confidence, integrity and transparency in government; and
WHEREAS, it is the desire of the City Council to serve the important public policies enumerated herein by adopting this Ordinance regulating and clarifying lobbying activities within the City of Orange and establishing a system of registration and reporting certain lobbying activities in the City of Orange.

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

SECTION I:

A new Chapter 2.13 of the Orange Municipal Code is hereby added to read as follows:

CHAPTER 2.13 LOBBYIST REGISTRATION AND REPORTING

2.13.010 Purpose

2.13.020 Definitions

2.13.030 Registration and Annual Reporting Required

2.13.040 Quarterly Activity Report

2.13.050 Exemptions

2.13.060 Reporting Made Available to the Public

2.13.070 Enforcement

2.13.010 Purpose.

The purposes of this Chapter are to require lobbyists engaged in lobbying activities as set forth herein, to register themselves and their clients and disclose the nature of their lobbying efforts, compensation, donations, and fundraising efforts. This information shall be accessible to the public.
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2 2.13.020 Definitions.

As used in this chapter, the following terms and phrases shall have the meaning ascribed to them in this chapter, unless the context in which they are used clearly requires otherwise. If a term or phrase is not defined in this chapter, or elsewhere in this code, the most common dictionary definition is presumed to be correct.
“City Representative” means local officeholders designated in Government Code Section 87200 of the Political Reform Act, or otherwise required to file “Form 700” as may be amended. “Client” means a Person who compensates a Lobbyist, or Lobbying Firm for the purpose of attempting to Influence a City Representative even if the Lobbyist or Lobbying Firm is compensated by another Person for such representation.
“Compensation” means money or anything of value, delivered or rendered; or promises to perform or provide services or contractual arrangements or awards. “Influence” means contacting, either directly or indirectly, for the purpose of conducting Lobbying Activities, by any means.
“Lobbyist” or “Lobbying Firm” means any Person or firm that receives Compensation , for engaging in Lobbying Activities. A Lobbyist includes, but is not limited to, Lobbying Activities engaged in on behalf of another Person including contingency compensation agreements. “Lobbying Activities” means Influencing or attempting to Influence a City Representative, by any means of verbal, written, or electronic communication, or otherwise, regarding any official decision of a City Representative, including but not limited to a legislative, quasi-judicial or administrative action or decision including adopting an ordinance, resolution, regulation or policy, granting or denying any permit, license or other entitlement of use, or awarding a contract or grant (“Official Action”).
“Person” means any individual or business entity including, but not limited to, a domestic or foreign corporation, association, syndicate, joint stock corporation, partnership of every kind, club, business or trust, society, or limited liability company.

2.13.030 Registration and Annual Reporting Required
A. Any Lobbyist who engages in Lobbying Activities shall register with the City Clerk within ten (10) days of qualifying as a Lobbyist per project by:

1. Paying the Lobbyist Registration Fee (per project), which fee shall be adopted by resolution of the City Council. The Lobbyist Registration Fee, including annual renewal and penalties, shall cover, and not exceed, the costs associated with administering the Lobbyist registration and reporting program described herein.

2. Completing and filing the Lobbying Registration Form (per project), as provided by the City 314
3 Clerk, which shall include, at a minimum, a written statement containing the following information, certified as true under penalty of perjury:
a. The full name, business address and telephone number of the Lobbyist, and, if the Lobbyist is a business entity or other organization, the full name, business address and telephone number of each Person employed by or otherwise associated with the business entity or organization who will be engaging in Lobbying Activities; b. The full name, business address and telephone number of the Person by whom the Lobbyist has been employed, retained or engaged by to perform Lobbying Activities; c. A description of Lobbying Activities which the Lobbyist has been employed, retained or engaged to do;
d. The date and amount of all gifts, contributions, and behested payments, as those terms are defined within the Political Reform Act of 1974 and accompanying regulations as may be amended, over $250.00, made to City Representatives, candidates or a candidate’s controlled committee, as applicable, within the past 12 months.

B. An amendment to the Lobbyist Registration Form must be completed and filed with the City Clerk by the Lobbyist within tthirty en (10(30) days from the time Lobbyist knows, or should have known, of any change in the accuracy of the information provided in the initial or renewal registration.

C. Within ten (10)thirty (30) days of the annual anniversary of initial registration, the Lobbyist shall submit a renewal form and pay the required Lobbyist Registration Fee.

D. No Person who qualifies as a Lobbyist shall contact or communicate with a City Representative without prior to completing and filing a Lobbying Registration Form and paying fees as a Lobbyist and identifying himself or herself to the City Representative as a Lobbyist.

E. A Person who lobbies or engages another Person to lobby, or any other Person acting on behalf of such Person, shall not cause any communication to be sent to a City Representative in the name of any fictitious Person or in the name of any real Person, except with the consent of such real Person.

FE. A Person who lobbies or engages another Person to lobby, or any other Person acting on behalf of such Person, shall not represent, either directly or indirectly, orally or in writing, that that Person can control or obtain the vote or action of any City Representative.

G. Lobbyists shall report to the Clerk of the Council the names of all City Representatives contacted regarding an Official Action at least eight (8) days prior to a public hearing, if one is required, meeting or other activity wherein a decision may be made on an Official Action. 315
4 2.13.040 Quarterly Activity Report
A. In addition to registration required pursuant to Section 2.13.030, a Lobbyist shall file with the City Clerk a separate report signed under penalty of perjury that contains the Lobbying Activities for each Client the Lobbyist received Compensation of $5,000 or more for Lobbying Activities during the prior calendar quarter. The report for the preceding calendar quarter shall be filed with the City Clerk on a Quarterly Activity Report Form between the first and 15th day of April, July, October, or January, or on the date registration on behalf of the Client is required, whichever comes later. If the Lobbyist is not an individual, an authorized officer or agent of the Lobbyist shall sign the report. The report shall be on the form prescribed by the City Clerk and shall include, with respect to the previous calendar quarter, to the extent applicable:

1. The name of the Lobbyist and the name of the Client;

2. A list of the specific issues upon which the Lobbyist engaged in Lobbying Activities, including, to the maximum extent practicable, a list of specific legislative proposals and other proposed, pending, or completed activity related to the Official Action(s);

3. A list of the City Representatives contacted by the Lobbyist on behalf of the Client with regard to the Official Action(s);

4. A list of the employees or agents of the Lobbyist who engaged in Lobbying Activities on behalf of the Client; and

5. The name and position of each City Representative or City Representatives' relative who is employed by the Lobbyist.

B. Each Lobbyist shall obtain and preserve and provide to the City within ten (10) days of any such request all books, papers and documents necessary to substantiate the activity reports required to be made pursuant to this section for five (5) years from the date of filing of the report containing such items.

C. No report is required if there is no activity during the preceding quarter calendar year and there are no other changes to items required to be reported.

D. A Person shall disclose employment to lobby on a contingent fee basis as well as any arrangement to engage in Lobbying Activities on a contingent fee arrangement.

2.13.050 Exemptions
The following persons are exempt from the requirements of this chapter unless otherwise specified:

A. A public official or public employee acting in his or her official capacity.

B. A Person who owns, publishes or is employed by a newspaper, radio station, television station or other media outlet that is engaged in the business of broadcasting news items, editorials, or commentary which directly or indirectly urges governmental action. 316
5 C. A Person hired by the City to conduct Lobbying Activities for the City for City propjectsprojects.

D. Any employee, officer, or board member of a business entity when addressing, in his or her capacity as an employee, officer, or board member of such business entity, an issue impacting the business entity.

E. Any State licensed architect or engineer whose attempts to Influence any Official Action are limited to: (1) publicly appearing at a public meeting, public hearing, or other official proceeding open to the public; or (2) preparing or submitting documents or writings in connection with the action or decision for use at a public meeting, public hearing, or other official proceeding open to the public.

F. Any Person whose only activity is submitting a bid on a competitively bid contract, submitting a written response to or participating in an oral interview related to a request for proposals or qualifications, or negotiating the terms of a written agreement with any city agency following a request for proposals or request for qualifications process.

2.13.060 Reporting Made Available to the Public
The Clerk shall make all lobbyist registration and quarterly activity reports available online to the public and copies available to the public through the Clerk’s Office.

2.13.070 Enforcement
A. Every violation of the provisions of this articleViolations of this Chapter may be charged as either a misdemeanor or as an infraction at the discretion of the citing officer or City Attorney and, upon conviction thereof, shall be punishable as provided for in this Code.

B. Each day any violation of any said provision of this chapter shall continue shall constitute a separate offense.

C. Any Person convicted ofin violatiionviolation ng this chapter may not act as a Lobbyist within the City or otherwise attempt to Influence Official Action for one (1) year after such a conviction.

D. Residents of the City shall have standing to bring a civil action for enforcement of this chapter.

E. Use of criminal enforcement and/or administrative citations shall not prevent or preclude the City from seeking injunctive relief and civil penalties in court for violations of this chapter.

SECTION 3:

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 317
6 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 4:

No City Representative as defined in 2.13.020 Definitions may register as a Lobbyist or engage in Lobbying Activities for one (1) calendar year subsequent to leaving elected or appointed office or position of employment within the City of Orange. This includes regional appointments as a representative of the the City in which the term of office may extend beyond the indivudal’s relinquishment of elected or appointed office and/or employment with the City of Orange.

SECTION 5:

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 ___________________, 2023.

Daniel R. Slater, Mayor, City of Orange
ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM
Michael J. Vigliotta, City Attorney

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 318
7 the ___ day of _____________, 2023, and thereafter at the regular meeting of said City Council duly held on the ___ day of ____________, 2023 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
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Agenda Item
City Council
Item #: 10.1. 11/28/2023 File #: 23-0766
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director

1. SUBJECT
Public Hearing to consider conduit tax-exempt bond financing for “The Orion” Senior Affordable Housing Project, Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing and finding of CEQA exemption.

2. SUMMARY
Resolution No. 11504 authorizes the City of Orange to approve the issuance by the California Municipal Finance Authority of tax-exempt bonds, in an amount not to exceed $45,000,000 to finance “The Orion” Senior Affordable Housing Project located at 1800 E. La Veta Avenue, Orange, California.

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Find that this action is not a project as defined by the California Environmental Quality Act (CEQA).

3. Adopt Resolution No. 11504. A Resolution of the City Council of the City of Orange approving a plan of finance including the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $45,000,000 to finance and refinance a qualified rental project for the benefit of Orange 702, L.P., a California Limited Partnership, and certain other matters relating thereto, located at 1800 E. La Veta Avenue.

4. FISCAL IMPACT
At the time bond issuance, a fee will be paid by Orange 702, L.P. (the recipient of the bond revenues) to the California Municipal Finance Authority (CMFA). Subsequently, CMFA will pay a share of the issuance fee to the City of approximately of $15,000 for being the public agency that authorizes the issuance of the bonds.

5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c: Support and enhance attractive, diverse living environments. e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.

6. DISCUSSION AND BACKGROUND
On March 7, 2022, the Planning Commission approved all required entitlements, and authorized USA Properties Fund, Inc. and Riverside Charitable Corporation (USA and RCC) for “The Orion” Senior City of Orange Printed on 11/21/2023Page 1 of 2
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Item #: 10.1. 11/28/2023 File #: 23-0766
Properties Fund, Inc. and Riverside Charitable Corporation (USA and RCC) for “The Orion” Senior Affordable Housing Project (Project) that will consist of 166 affordable rental housing units for low and very low income families. Entitlements include Conditional Use Permit No. 3146-21, Major Site Plan Review No. 1047-21, Design Review No. 5042-21, and a density bonus with affordable housing concessions and waivers to development standards (Attachments 2 and 3). The proceeds of the Bonds will be used to finance and refinance the acquisition, construction, development and equipping of the project. USA and RCC are the project proponents. The Project is located on a 3.85 acre site at 1800 E. La Veta Avenue.

The statewide elimination of redevelopment agencies in 2012 removed an important funding source for affordable housing, and creative solutions are required to fund affordable projects. The applicant has requested that the California Municipal Finance Authority (CMFA) issue tax-exempt bonds in an aggregate amount not to exceed $45,000,000 to finance the project.

As part of the issuance process, the City is required under the Tax Equity and Fiscal Responsibility Act (TEFRA) to hold a public hearing on the use of tax-exempt bonds for this project. The required seven-day public hearing notice was published on November 16, 2023 in the Anaheim Bulletin.

Although the City is holding the TEFRA hearing as part of the bond issuance, this does not create any financial obligation for the City regarding the bonds.

Staff requests the City Council approve Resolution No. 11504 for the issuance of tax-exempt bonds by the CMFA to finance “The Orion” Senior Affordable Housing Project located at 1800 E. La Veta Avenue, Orange, California.

7. ENVIRONMENTAL REVIEW
The proposed project is not subject to the provisions of the California Environmental Quality Act (CEQA) pursuant to (1) Section 15061(b)(3) of the state CEQA Guidelines (Common Sense Exemption) because it can be seen with certainty that there is no possibility that it would have a significant effect on the environment; and (2) Section 15378 because it will not have a direct or reasonably foreseeable indirect physical change on the environment and is not a "project." For this reason, no further CEQA documentation is required.

8. ATTACHMENTS
· Attachment 1 - Resolution No. 11504
· Attachment 2 - March 7, 2022 Planning Commission Staff Report (without attachments) · Attachment 3 - Planning Commission Resolution No. PC 02-22 City of Orange Printed on 11/21/2023Page 2 of 2
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Agenda Item
City Council
Item #: 10.1. 11/28/2023 File #: 23-0766
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director

3. RECOMMENDED ACTION

1. Conduct and close Public Hearing.

2. Find that this action is not a project as defined by the California Environmental Quality Act (CEQA).

6. DISCUSSION AND BACKGROUND
On March 7, 2022, the Planning Commission approved all required entitlements, and authorized USA Properties Fund, Inc. and Riverside Charitable Corporation (USA and RCC) for “The Orion” Senior City of Orange Printed on 11/21/2023Page 1 of 2
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Item #: 10.1. 11/28/2023 File #: 23-0766
Properties Fund, Inc. and Riverside Charitable Corporation (USA and RCC) for “The Orion” Senior Affordable Housing Project (Project) that will consist of 166 affordable rental housing units for low and very low income families. Entitlements include Conditional Use Permit No. 3146-21, Major Site Plan Review No. 1047-21, Design Review No. 5042-21, and a density bonus with affordable housing concessions and waivers to development standards (Attachments 2 and 3). The proceeds of the Bonds will be used to finance and refinance the acquisition, construction, development and equipping of the project. USA and RCC are the project proponents. The Project is located on a 3.85 acre site at 1800 E. La Veta Avenue.

Although the City is holding the TEFRA hearing as part of the bond issuance, this does not create any financial obligation for the City regarding the bonds.

RESOLUTION NO. 11504

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF ORANGE APPROVING A PLAN

OF FINANCE INCLUDING THE ISSUANCE OF

REVENUE BONDS BY THE CALIFORNIA

MUNICIPAL FINANCE AUTHORITY IN AN

AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $45,000,000 TO FINANCE AND

REFINANCE A QUALIFIED RESIDENTIAL

RENTAL PROJECT FOR THE BENEFIT OF
ORANGE 702, L.P., A CALIFORNIA LIMITED

PARTNERSHIP, AND CERTAIN OTHER

MATTERS RELATING THERETO , LOCATED
AT 1800 E. LA VETA AVENUE

WHEREAS, USA Orange 702, Inc., an affiliate of USA Properties Fund, Inc., a California corporation, and Riverside Charitable Corporation, a California nonprofit public benefit corporation (collectively, the “Sponsor”), on behalf of Orange 702, L.P., a California limited partnership, or another ownership entity to be created by the Sponsor or affiliates thereof (such ownership entity, the “Borrower”), have requested that the California Municipal Finance Authority (the “Authority”) undertake a plan of finance, including the issuance from time to time of one or more series of revenue bonds in an aggregate principal amount not to exceed $45,000,000 (together with a like amount of refunding bonds) (the “Bonds”) to finance and refinance the acquisition, construction, development and equipping of a 166-unit qualified residential rental project (the “Project”) to be owned and operated by the Borrower and located at 1800 E. La Veta Avenue in the City of Orange, California (the “City”); and

WHEREAS, an “applicable elected representative” of the jurisdiction in which the Project is to be located is required to approve the plan of finance for the Project, including the issuance of the Bonds, under Section 147(f) of the Code; and

WHEREAS, the City Council of the City of Orange (the “City Council”) is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and

WHEREAS, the Authority has requested that the City Council approve the plan of finance for the Project, including the issuance of the Bonds by the Authority, in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and

WHEREAS, pursuant to Section 147(f) of the Code, following notice duly given, a public hearing was held via teleconference on November 17, 2023, regarding the issuance of the Bonds, and the City Council now desires to approve the plan of finance for the Project, including the issuance of the Bonds by the Authority.
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2 NOW, THEREFORE, BE IT RESOLVED , by the City Council of the City of Orange as follows:

SECTION 1 - ENVIRONMENTAL REVIEW

The California Environmental Quality Act (Section 21000, et. seq. of the California Public Resources Code, hereafter “CEQA”) requires analysis of agency approvals of discretionary “projects.” A “project,” under CEQA, is defined as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” CEQA Guidelines §15061(b)(3) sets forth the Common Sense Rule that CEQA only applies 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.” The action being taken by the City Council is to adopt a resolution approving the issuance of revenue bonds by the CMFA to provide for the financing of the project. Such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Internal Revenue Code, and the California Government Code Section 6500 (and following). The Project was previously approved and environmental impacts associated with that project were analyzed under a separate CEQA analysis. This City Council action does not involve the approval of any physical development or activity that would have the potential for causing a significant effect on the environment. Therefore, the proposed action does not constitute approval of a project under CEQA, is exempt from CEQA, and is not subject to further environmental review. (CEQA Guidelines §15061(b)(3).)

SECTION 2 – RECITALS

The foregoing recitals are true and correct.

SECTION 3- CITY COUNCIL APPROVAL

The City Council hereby approves the plan of finance for the Project, including the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the plan of finance for the Project, including the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

SECTION 4 – CITY COUNCIL AUTHORIZATON

The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

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3 SECTION 5 – RESOLUTION ROUTING

The City Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111
SECTION 6 – EFFECTIVE DATE

This resolution shall take effect immediately upon its adoption.

ADOPTED this ____ day of ____________________, 2023

Daniel R. Slater, Mayor, City of Orange

ATTEST:

Pamela Coleman, City Clerk, City of Orange

APPROVED AS TO FORM:

Mike Vigliotta, City Attorney

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4 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 Resolution was duly and regularly adopted by the City Council of the City of Orange at a regular meeting thereof held on the day of , 2023 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

Pamela Coleman, City Clerk, City of Orange

327
Agenda Item
Planning Commission
Item #: 7.1. 3/7/2022 File #: 22-0012
TO: Chair and Members of the Planning Commission
THRU: Anna Pehoushek, Assistant Community Development Director FROM: Monique Schwartz, Associate Planner

1. SUBJECT
Public Hearing: Conditional Use Permit No. 3146-21, Major Site Plan Review No. 1047-21, Design Review No. 5042-21, and a density bonus with affordable housing concessions and waivers to development standards - The Orion Senior Citizen Apartment Complex, 1800 E. La Veta Avenue/585 S. Tustin Street

2. SUMMARY
The applicant proposes to redevelop an existing 3.85-acre rehabilitation center site with a new 166- unit affordable senior citizen apartment complex and related site improvements.

3. RECOMMENDED ACTION
Adopt Planning Commission Resolution No. PC 02-22 entitled:

A Resolution of the Planning Commission of the City of Orange approving Conditional Use Permit No. 3146-21, Major Site Plan Review No. 1047-21, Design Review No. 5042-21, and a density bonus with affordable housing concessions and waivers to development standards to redevelop an existing rehabilitation center site with a new 166-unit affordable senior citizen apartment complex and related site improvements, located at 1800 E. La Veta Avenue/585 S. Tustin Street.

4. AUTHORIZING GUIDELINES
Orange Municipal Code (OMC) Sections 17.08.020, 17.10.030.C, and 17.13.030 authorize the Planning Commission to review and take action on the subject applications. OMC Table 17.08.020 - Reviewing Bodies states that 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. In addition, OMC Section 17.15.060.B authorizes the Planning Commission to review and make final determinations on applications for a density bonus when no direct financial assistance is provided by the City for the project. Therefore, the Planning Commission is acting as the final approving body on all of the applications for the project.

5. PROJECT BACKGROUND
City of Orange Printed on 3/3/2022Page 1 of 17
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Item #: 7.1. 3/7/2022 File #: 22-0012
Applicant: USA Properties Fund Incorporated / Leatha Clark Property Owner Rehabilitation Institute of Southern California, a California Corporation / Glenn Motola
Property Location 1800 E. La Veta Avenue/585 S. Tustin Street Existing General Plan Land Use
Element Designation
Medium Density Residential, 15-24 dwellings units/acre (MDR) Existing Zoning Classification Residential Multiple Family (R-3) Old Towne No
Specific Plan/PC No
Site Size 167,706 square feet (3.85-acres)
Circulation The project site is located on the east side of South Tustin Street, on the south side of East La Veta Avenue, and on the north side of East Fairway Drive. The City’s Master Plan of Streets and Highways classifies North Tustin Street as a Major Arterial with an ultimate right of way width of 120 feet, East La Veta Avenue as a Secondary Arterial with an ultimate right of way width of 86 feet, and East Fairway Drive as a local residential street. Access to the site is provided by two-way driveways along East La Veta Avenue and East Fairway Drive. These driveways are connected by an interior drive aisle that traverses the site in a north- south direction leading to interior gated parking lots. In addition, an access point to the multi-purpose Santiago Creek Trail is located at the northeast corner of the intersection of Tustin Street and La Veta Avenue immediately to the north, and OCTA Bus Route 71 (Yorba Linda to Newport Beach) is located adjacent to the northwest corner of the site along Tustin Street.

Existing Conditions The existing site is an “H”-shaped parcel that is currently developed with a 107,586 square foot, 1 and 2-story rehabilitation center building with enclosed swimming pool built in phases from 1960 to 1987 and a 1,300 square foot single-family residence built in 1914, surface parking lots, landscaped park with walking path and rectangular play yard.

There are many mature trees located on the property interior and perimeter. An easement with above ground utility poles is located along the eastern boundary. A 3-story affordable senior citizen apartment building and associated parking lot (Casas Del Rio - 1740 E.

La Veta Avenue), and a 4-story affordable senior citizen apartment building over podium parking (Chestnut Place - 1745 E. Fairway Drive) are located between the residence and rehabilitation center on separate parcels. The rehabilitation center building is currently occupied by a non-profit organization, and the house is vacant and was recently destroyed by fire. Historic Resources Assessment A Historic Resources Assessment (Attachment 9) of the rehabilitation center building and residence was conducted for the project. The Assessment characterized the design of the rehabilitation center building as “a modest institutional derivative of the Mid-Century Modern style”, and the residence as “a very modest example of the Craftsman architectural style. The Assessment concluded that the structures on the subject property are not eligible for listing in the National or California Registers and do not meet the definition of historical resources under the California Environmental Quality Act (CEQA).

Archaeological Report: Because the project site is located within high sensitivity areas on the City’s General Plan pre-historic and historic archaeological sensitivity maps, an Archaeological Report (Attachment 10) was conducted. The Report indicated that no archaeological resources that require further consideration were identified on the site as a result of a pedestrian survey. In addition, a records search revealed that the project area had not been previously surveyed and no resources had been previously recorded. A California Native American Heritage Commission (NAHC) Sacred Lands File search; however, yielded a positive result. The project site is also in a location that has been identified as being archaeologically sensitive due to its proximity to Santiago Creek. As such, the Report provided archaeological monitoring recommendations during ground disturbing activities. These recommendations are included as conditions of approval for the project. (See Attachment 1 - Resolution No. PC 02-22) Surrounding Land Uses and
Zoning
To the north of the project site is East La Veta Avenue and a 2-story multi-family apartment complex (Arroyo Casa Apartment Homes), zoned Residential Multiple Family (R-3). Also to the north is the Santiago Creek Trail. To the south is East Fairway Drive, a 76 Gas Station and 7-Eleven convenience store, and 1-2 story multi-family apartment complex (Fairway Park Apartments), zoned Limited Business (C-1) and Residential Multiple Family (R-3), respectively. To the east is a 1-story multi-family apartment complex and swimming pool area (Fairway Park Apartments), zoned Residential Multiple Family (R-3). To the west is South Tustin Street and a 4-story multi-family apartment complex (Harmony Creek Senior Apartment Homes), zoned Planned Community (P-C).

Previous
Applications/Entitlements
On December 2, 1985, the Planning Commission adopted Resolution No. PC 89-85 approving Conditional Use Permit No. 1478, Variance No. 1781, and Tentative Parcel Map No. 85-402 to allow subdivision of a

5.17-acre Rehabilitation Institute site into two parcels in order to construct a 3-story, 40-unit affordable senior citizen apartment complex. On August 18, 1986, the Planning Commission adopted Resolution No. PC-65-86 approving Conditional Use Permit No. 1528 for the construction of a 5,665 square foot, 1-story addition to an existing 24,004 square foot, 2-story outpatient rehabilitation building to be utilized for day care and bingo activities.

City of Orange Printed on 3/3/2022Page 2 of 17
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Item #: 7.1. 3/7/2022 File #: 22-0012
Applicant: USA Properties Fund Incorporated / Leatha Clark Property Owner Rehabilitation Institute of Southern California, a California Corporation / Glenn Motola
Property Location 1800 E. La Veta Avenue/585 S. Tustin Street Existing General Plan Land Use
Element Designation
Medium Density Residential, 15-24 dwellings units/acre (MDR) Existing Zoning Classification Residential Multiple Family (R-3) Old Towne No
Specific Plan/PC No
Site Size 167,706 square feet (3.85-acres)
Circulation The project site is located on the east side of South Tustin Street, on the south side of East La Veta Avenue, and on the north side of East Fairway Drive. The City’s Master Plan of Streets and Highways classifies North Tustin Street as a Major Arterial with an ultimate right of way width of 120 feet, East La Veta Avenue as a Secondary Arterial with an ultimate right of way width of 86 feet, and East Fairway Drive as a local residential street. Access to the site is provided by two-way driveways along East La Veta Avenue and East Fairway Drive. These driveways are connected by an interior drive aisle that traverses the site in a north- south direction leading to interior gated parking lots. In addition, an access point to the multi-purpose Santiago Creek Trail is located at the northeast corner of the intersection of Tustin Street and La Veta Avenue immediately to the north, and OCTA Bus Route 71 (Yorba Linda to Newport Beach) is located adjacent to the northwest corner of the site along Tustin Street.

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Item #: 7.1. 3/7/2022 File #: 22-0012
Applicant: USA Properties Fund Incorporated / Leatha Clark Property Owner Rehabilitation Institute of Southern California, a California Corporation / Glenn Motola
Property Location 1800 E. La Veta Avenue/585 S. Tustin Street Existing General Plan Land Use
Element Designation
Medium Density Residential, 15-24 dwellings units/acre (MDR) Existing Zoning Classification Residential Multiple Family (R-3) Old Towne No
Specific Plan/PC No
Site Size 167,706 square feet (3.85-acres)
Circulation The project site is located on the east side of South Tustin Street, on the south side of East La Veta Avenue, and on the north side of East Fairway Drive. The City’s Master Plan of Streets and Highways classifies North Tustin Street as a Major Arterial with an ultimate right of way width of 120 feet, East La Veta Avenue as a Secondary Arterial with an ultimate right of way width of 86 feet, and East Fairway Drive as a local residential street. Access to the site is provided by two-way driveways along East La Veta Avenue and East Fairway Drive. These driveways are connected by an interior drive aisle that traverses the site in a north- south direction leading to interior gated parking lots. In addition, an access point to the multi-purpose Santiago Creek Trail is located at the northeast corner of the intersection of Tustin Street and La Veta Avenue immediately to the north, and OCTA Bus Route 71 (Yorba Linda to Newport Beach) is located adjacent to the northwest corner of the site along Tustin Street.

6. PROJECT DESCRIPTION
The applicant proposes to demolish a 107,586 square foot, 1 and 2-story rehabilitation center building with enclosed swimming pool, a 1,300 square foot single family residence, and related site improvements in order to construct a 166-unit (165 resident units and one manager unit), 100% affordable senior citizen apartment complex. The community will have a full-time resident manager and onsite management/leasing office. The community will be income restricted with incomes ranging between 30% Area Median Income (AMI) to 70% AMI. The population served by the project include low- and very-low income households. The project will also be restricted to seniors at or over the age of 62.

The 3.85-acre site is an irregular “H”-shapedparcel that will be configured with three apartment buildings containing 51-59 units each, and a total of 145,716 square feet of gross building area. Each building is “L”-shaped,2- and 4-stories in height, and designed around or adjacent to common amenity courtyards and surface parking. 63 units will have a private patio or balcony.

The project provides four different floor plans ranging from 584-769 square feet:

Floor Plan No. of Units Bedrooms Bathrooms Square Footage A1 103 1 1 584
A2 8 1 1 589
B1 40 2 1 761
B1 ALT 15 2 1 769
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Item #: 7.1. 3/7/2022 File #: 22-0012Floor Plan No. of Units Bedrooms Bathrooms Square Footage A1 103 1 1 584
A2 8 1 1 589
B1 40 2 1 761
B1 ALT 15 2 1 769
Access to the site is provided by two-way driveways along La Veta Avenue and Fairway Drive. These driveways are connected by an interior drive aisle that traverses the site in a north-south direction, leading to gated parking lots on the east, middle, and west sides of the property, and a total of 168 parking spaces. The project also provides pedestrian and bicycle gates along La Veta Avenue and Tustin Street for convenient access to the nearby Santiago Creek Trail and bus stop located on Tustin Street, adjacent to the northwest corner of the site.

Building 1 is located at the northeast corner of the site, is set back approximately 15 feet from the north and east property lines, is 2-stories (29 feet-3 inches) in height along the eastern edge (taking into consideration the adjacent 1-story multi-family development along the eastern boundary), and steps up to 4-stories (53 feet) on the west side of the building. This building provides street presence along La Veta Avenue and is designed around Courtyard 1, with amenities including a strolling garden with meandering pathways and seating. Building 2 is centrally located on the east side of the property, is set back approximately 52 feet from the east property line, is 4-stories (53 feet) in height, and will contain the complex’sleasing office, clubroom with kitchen, and computer area. This building lies between Courtyards 2 and 3 with amenities including barbeques, large shade structure with tables and chairs, shaded lounge seating areas, and a community garden. Building 3 is located at the southwest corner of the site, is set back 10-12 feet along the Tustin Street and Fairway Drive street frontages, is 4-stories (53 feet) in height and will contain the complex’sfitness center. This building is designed around Courtyard 4 and is adjacent to the dog park with amenities including barbeques, open and covered seating, and enclosed dog yard with bench seating. Building 3 accentuates the highly visible intersection of Tustin Street and Fairway Drive, and is similar in size and massing to the 4-story Harmony Creek Senior Apartment development across Tustin Street, and the 3 and 4-story Chestnut Place development on Fairway Drive.

Shared Access, Parking, and Common Open Space with Casas Del Rio and Chestnut Place The proposed project is located adjacent to the Casas Del Rio and Chestnut Place affordable senior citizen apartment developments that currently share access, parking, and recreational open space with the existing rehabilitation center.

The Casas Del Rio development (40-units) was approved in 1985 under Conditional Use Permit No. 1478, Variance No. 1781, and Tentative Parcel Map No. 85-402. This project included shared use of the rehabilitation center’splayground area in lieu of open space recreational area required by the Code at that time. In addition, the project included shared parking with the rehabilitation center for overflow and guests. Staff determined that approximately 6,745 square feet of open space recreational area is shared with the existing rehabilitation facility, but the number of shared parking spaces could not be identified. As a result, the applicant has provided a Parking Demand Analysis for the existing Casas Del Rio property (Attachment 12), which concluded that the existing project has sufficient parking, providing that one accessible parking stall is converted to a standard parking stall.

The proposed project will include the parking stall conversion and has reflected this condition on the plans.

The Chestnut Place development (50-units) was approved in 1994 under Conditional Use Permit No. 2047-94 and Tentative Parcel Map 93-188. This project also included the use of the rehabilitation City of Orange Printed on 3/3/2022Page 5 of 17
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Item #: 7.1. 3/7/2022 File #: 22-0012
2047-94 and Tentative Parcel Map 93-188. This project also included the use of the rehabilitation center’splayground in lieu of open space recreational area required by the Code at that time. Staff determined that approximately 1,450 square feet of open space recreational area is shared with the rehabilitation center.

In summary, both Casas Del Rio and Chestnut Place share approximately 8,195 square feet of open space recreational area with the existing rehabilitation center. The proposed project will continue to share common open space and amenities with these developments. Casas Del Rio will share Courtyards 1, 4, and the dog park, while Chestnut Place will share Courtyard 4, for a total of 8,273 square feet. A Shared Access and Open Space Plan is provided on Sheet 1 of the project plans (Attachment 16) and Condition of Approval #61 has been included within Resolution No. PC-02-22 (Attachment 1) requiring recordation of a reciprocal access/use agreement for shared open space and pedestrian access with the Casas Del Rio and Chestnut Place properties.

Building Architecture
The project features a contemporary architectural style that reflects current trends in multi-family housing development. A variety of architectural features strive to achieve this character, including varied flat roof lines, extensive use of window and balconies, alternating wall planes, and vertical and horizontal accent details. The use of a variety of exterior building materials also contributes to this distinctive architectural style, including painted stucco in a light sand finish, vinyl windows, metal railings at balconies, metal awnings over fourth story windows, Fry Reglet Metal Screed Channels (1.5-inches in width and depth), and aluminum storefront system. The buildings will incorporate coordinating color schemes in shades of orange, gray, and black.

A large concrete masonry trash enclosure will be located within a landscape planter across from Courtyard 5 and adjacent to the project entry off of Fairway Drive. The enclosure exterior will incorporate similar design features and matching colors and materials as the other buildings on the site, including horizontal and vertical accent details, painted stucco finish, painted metal gates, and painted flat metal awning.

Streetscape and Landscape
The project site includes many existing mature trees. The applicant has provided an Arborist Report (Attachment 8) that discusses the impacts of project construction adjacent to 67 on-site, and 11 street trees. The report identifies 57 on-site trees proposed for removal, and the remaining 10 on-site, and 11 street trees to be preserved and protected in place. In addition, the report provides tree protection measures and recommendations for the project. Sheet L4 (Existing Tree Inventory) illustrates the location of the existing trees to remain and to be removed.

Sheets L1, L2, and L5 (Conceptual Landscape, Amenity Courtyard Enlargement, and Plant Material Plans) illustrate the proposed landscape palette for the project. The project incorporates a variety of water efficient plant material along the street frontages, project interior, and perimeter boundaries, including a total of 129 new trees, for a total of 139 on-site trees for the project site. Enhanced landscaping, including Date Palms, Goldenrain, D.D. Blanchard Magnolia, Camphor, London Plane, Chinese Elm, Canary Island Pine, and Brisbane Box trees as well as a mix of shrubs and ground cover, including Blue Flame Agave, Dwarf Bottle Brush, Fortnight Lily, Bird of Paradise, and New Gold Lantana will articulate and soften the 4-story building design at the southwest corner of the site and create a relationship between the buildings and pedestrians along all street frontages. Two new Ornamental Pear street trees are proposed along Fairway Drive, adjacent to the southwest corner of City of Orange Printed on 3/3/2022Page 6 of 17
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Item #: 7.1. 3/7/2022 File #: 22-0012
the site.

The project interior includes foundation landscaping around the buildings, and landscape planters distributed throughout the parking lots and amenity courtyards, containing London Plane, Chinese Elm, Brisbane Box, Orchid, Southern Magnolia, and Crape Myrtle trees, as well as a variety shrubs and ground cover, including synthetic turf. Existing mature trees located at the northeast corner of the site and along the eastern boundary will remain to help screen the 2-story building elevation of Building 1 from the 1-story multi-family residential development to the east. Enhanced paving is provided at the entrance to each apartment building, within the amenity courtyards, and on pedestrian pathways that provide connectivity throughout the community.

Fencing
Sheet L3 (Fence and Wall Plan) illustrates existing and proposed fencing for the project. For community security purposes, the site will be completely enclosed with a combination of existing and new 6-foot tall fencing, including concrete masonry walls and tubular steel fencing with or without pilasters. A 4-foot tall tubular steel fence with screening will enclose the interior of the landscaped dog park. Two automatic, key fob operated sliding gates will be located along the vertical drive aisle that will provide access to the project parking lots. Key fob operated tubular steel pedestrian gates are distributed throughout the project interior as well as perimeter boundaries providing access to the project street frontages, nearby Santiago Creek Trail, and adjacent bus stop. The project includes a waiver of the 42-inch tall front yard setback fencing requirement along La Veta Avenue.

Lighting
Sheets E0.0, E1.0 and E1.1 (Site Lighting Plans) include LED wall mounted light fixtures (with lights projecting in a downward direction) on the first floor building elevations. The interior drive aisle and parking lots will include 14-foot tall LED pole mounted light fixtures, while walkways and amenity courtyards will include 42-inch tall LED bollard lighting. All project lighting will be shielded and oriented to prevent glare or light spillage onto neighboring properties. The proposed fixture styles are contemporary and compatible with the architecture of the buildings.

Signage
Conceptual signage is included for illustrative purposes and is not part of this project proposal.

Building signage is proposed on the west elevation of Building 1 and on the north elevation of Building 3. Monument signs are proposed at the entry driveways along La Veta Avenue and Fairway Drive. Directory monuments are proposed at the southwest corners of Buildings 1 and 2. All signage will comply with the City’s sign regulations.

Development Standards
With the utilization of concessions and waivers provided under the affordable housing provisions of state law, the design of the project is acceptable in the zoning district.

Required Proposed Code Section
Building Height 32 feet - 2 stories unless
greater height is approved
via a Conditional Use
Permit.
29-53 feet - 2-4 stories
Concession Applied
OMC Table 17.14.070,
and OMC Sections

17.14.100 and

17.15.050
Distance between
structures
Distance between
principal and accessory
structures
15 feet between building
fronts/any other building
wall. 8 feet between all
other configurations.
6 feet
Separation between
Buildings 1 and 2: 57
feet-3inches Separation
between Buildings 2 and
3: +300 feet Separation
between Building 3 and
Chestnut Place: 20 feet
Separation between
Building 2 and Casas Del
Rio: 46 feet Separation
between Building 2 and
trash enclosure: 39 feet
OMC Table 17.14.120
Fence height Front yard - 3.5 feet Side
and Rear yards: 6 feet
6 feet Waiver Applied 6
feet
OMC Section

17.12.070.B.2 OMC
Section 17.12.070.B.1
Floor Area Ratio (FAR) Not applicable. Not applicable. General Plan Land Use Element
Lot coverage 45% for 2-story structures.

Code is silent on 3 and 4-
story structures.
24% OMC Table 17.14.070
Lot size (residential) 8,000 square feet for corner
lots
167,706 square feet
(3.85 acres)
OMC Table 17.14.070
Lot frontage (La Veta
Avenue)
80 feet for corner lots 648 feet OMC Table 17.14.070
Lot depth 100 feet 274-508 feet OMC Table 17.14.070
Open space, common
(residential)
250 square feet/unit =
41,500 square feet
Minimum depth and width
shall be 20 feet x 20 feet
One recreational amenity
for each 25 units (7
required). A mix shall be
provided for projects
exceeding 25 units.
19,701 square feet
Concession Applied ·
Strolling garden with
seating in Courtyard 1 ·
Large shade structure
with seating in
Courtyard 2 · 2 BBQ
areas in Courtyard 2 · 2
BBQ areas in Courtyard
4 · Community Garden
in Courtyard 3 · Table
seating with umbrellas
in Courtyards 2, 3, and 4
· Open lounge seating
in Courtyards 2 and 3 ·
1,318 square foot Club
Room with kitchen in
Building 2 · 469 square
foot fitness center in
Building 3
OMC Table 17.14.070
and 17.14.110.B.2
Open space, private
(residential)
Each unit shall be provided
with at least one area of
private useable open space
accessible directly from the
living area of the unit in the
form of a fenced yard or
patio, deck, or balcony. To
count toward the open
space requirement, the
minimum dimensions shall
be 10 x 10 feet for decks or
patios and 7 x 7 feet for
balconies.
2,583 square feet
Project provides 7 x 5
foot-4 inches sized
balconies/patios for 63
units. 103 units are not
provided with private
open space. Concession
Applied
OMC Section

17.14.110.B.1
Open space, useable
(residential)
250 square feet per unit =
41,500 square feet
19,701 square feet
Concession Applied
OMC Table 17.14.070,
and OMC Section

17.14.110
Parking (residential) 349 total spaces required
One bedroom: 1.7
spaces/unit 111 two
bedroom units = 188.7
spaces Two bedrooms: 2.0
spaces/unit 55 two
bedroom units = 110 spaces

0.3 spaces/unit for guest
parking. 166 units = 49.8
spaces

0.5 spaces/unit = 83
spaces required Per
Affordable Housing
Provisions of State Law
Project has provided
168 spaces
OMC Table

17.34.060.A
Motorcycle Parking 300 square feet for a
project with more than 50
parking spaces.
0 square feet Waiver
Applied
OMC Section

17.34.080 and OMC
Table 17.34.080
Bicycle Parking 2 racks with locking
capabilities for a minimum
of 5 bicycles.
2 racks for a total of 10
bicycles.

OMC Section

17.34.080 and OMC
Table 17.34.080
Loading Area for Senior
Housing
10 feet x 60 feet for a
development with 51-250
parking spaces.
10 feet x 50 feet Waiver
Applied
OMC Section

17.34.160
Setback, Front (La Veta
Avenue)
15 feet 15 feet OMC Table 17.14.070
Setback, Rear (Fairway
Drive)
10 feet 10 feet OMC Table 17.14.070
Setback, East Side 5 feet 15 feet OMC Table 17.14.070
Setback, West Side (Tustin
Street)
10 feet 10 feet-10 inches OMC Table 17.14.070
Unit Size One Bedroom: 600 square
feet Two Bedrooms: 750
square feet
One Bedroom: 584
square feet with
Concession Applied
Two Bedrooms: 763
square feet
OMC Section

17.14.130
Storage Area A unified storage area of at
least 120 cubic feet/unit in
addition to typical storage
areas.
120 cubic feet/unit OMC Section

17.14.140
Density 15-24 dwelling units/acre =

92.4 units
43 dwelling units/acre
are proposed = 166
units Per Affordable
Housing Provisions of
State Law
General Plan Land
Use Map
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Required Proposed Code Section
Building Height 32 feet - 2 stories unless
greater height is approved
via a Conditional Use
Permit.
29-53 feet - 2-4 stories
Concession Applied
OMC Table 17.14.070,
and OMC Sections

17.14.100 and

17.12.070.B.2 OMC
Section 17.12.070.B.1
Floor Area Ratio (FAR) Not applicable. Not applicable. General Plan Land Use Element
Lot coverage 45% for 2-story structures.

17.14.110.B.1
Open space, useable
(residential)
250 square feet per unit =
41,500 square feet
19,701 square feet
Concession Applied
OMC Table 17.14.070,
and OMC Section

17.14.110
Parking (residential) 349 total spaces required
One bedroom: 1.7
spaces/unit 111 two
bedroom units = 188.7
spaces Two bedrooms: 2.0
spaces/unit 55 two
bedroom units = 110 spaces

0.3 spaces/unit for guest
parking. 166 units = 49.8
spaces

0.5 spaces/unit = 83
spaces required Per
Affordable Housing
Provisions of State Law
Project has provided
168 spaces
OMC Table

17.34.060.A
Motorcycle Parking 300 square feet for a
project with more than 50
parking spaces.
0 square feet Waiver
Applied
OMC Section

17.34.080 and OMC
Table 17.34.080
Bicycle Parking 2 racks with locking
capabilities for a minimum
of 5 bicycles.
2 racks for a total of 10
bicycles.

OMC Section

17.34.080 and OMC
Table 17.34.080
Loading Area for Senior
Housing
10 feet x 60 feet for a
development with 51-250
parking spaces.
10 feet x 50 feet Waiver
Applied
OMC Section

17.14.130
Storage Area A unified storage area of at
least 120 cubic feet/unit in
addition to typical storage
areas.
120 cubic feet/unit OMC Section

17.14.140
Density 15-24 dwelling units/acre =

92.4 units
43 dwelling units/acre
are proposed = 166
units Per Affordable
Housing Provisions of
State Law
General Plan Land
Use Map
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Required Proposed Code Section
Building Height 32 feet - 2 stories unless
greater height is approved
via a Conditional Use
Permit.
29-53 feet - 2-4 stories
Concession Applied
OMC Table 17.14.070,
and OMC Sections

17.14.100 and

17.12.070.B.2 OMC
Section 17.12.070.B.1
Floor Area Ratio (FAR) Not applicable. Not applicable. General Plan Land Use Element
Lot coverage 45% for 2-story structures.

17.14.110.B.1
Open space, useable
(residential)
250 square feet per unit =
41,500 square feet
19,701 square feet
Concession Applied
OMC Table 17.14.070,
and OMC Section

17.14.110
Parking (residential) 349 total spaces required
One bedroom: 1.7
spaces/unit 111 two
bedroom units = 188.7
spaces Two bedrooms: 2.0
spaces/unit 55 two
bedroom units = 110 spaces

0.3 spaces/unit for guest
parking. 166 units = 49.8
spaces

0.5 spaces/unit = 83
spaces required Per
Affordable Housing
Provisions of State Law
Project has provided
168 spaces
OMC Table

17.34.060.A
Motorcycle Parking 300 square feet for a
project with more than 50
parking spaces.
0 square feet Waiver
Applied
OMC Section

17.34.080 and OMC
Table 17.34.080
Bicycle Parking 2 racks with locking
capabilities for a minimum
of 5 bicycles.
2 racks for a total of 10
bicycles.

OMC Section

17.34.080 and OMC
Table 17.34.080
Loading Area for Senior
Housing
10 feet x 60 feet for a
development with 51-250
parking spaces.
10 feet x 50 feet Waiver
Applied
OMC Section

17.14.130
Storage Area A unified storage area of at
least 120 cubic feet/unit in
addition to typical storage
areas.
120 cubic feet/unit OMC Section

17.14.140
Density 15-24 dwelling units/acre =

92.4 units
43 dwelling units/acre
are proposed = 166
units Per Affordable
Housing Provisions of
State Law
General Plan Land
Use Map
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Required Proposed Code Section
Building Height 32 feet - 2 stories unless
greater height is approved
via a Conditional Use
Permit.
29-53 feet - 2-4 stories
Concession Applied
OMC Table 17.14.070,
and OMC Sections

17.14.100 and

17.12.070.B.2 OMC
Section 17.12.070.B.1
Floor Area Ratio (FAR) Not applicable. Not applicable. General Plan Land Use Element
Lot coverage 45% for 2-story structures.

17.14.110.B.1
Open space, useable
(residential)
250 square feet per unit =
41,500 square feet
19,701 square feet
Concession Applied
OMC Table 17.14.070,
and OMC Section

17.14.110
Parking (residential) 349 total spaces required
One bedroom: 1.7
spaces/unit 111 two
bedroom units = 188.7
spaces Two bedrooms: 2.0
spaces/unit 55 two
bedroom units = 110 spaces

0.3 spaces/unit for guest
parking. 166 units = 49.8
spaces

0.5 spaces/unit = 83
spaces required Per
Affordable Housing
Provisions of State Law
Project has provided
168 spaces
OMC Table

17.34.060.A
Motorcycle Parking 300 square feet for a
project with more than 50
parking spaces.
0 square feet Waiver
Applied
OMC Section

17.34.080 and OMC
Table 17.34.080
Bicycle Parking 2 racks with locking
capabilities for a minimum
of 5 bicycles.
2 racks for a total of 10
bicycles.

OMC Section

17.34.080 and OMC
Table 17.34.080
Loading Area for Senior
Housing
10 feet x 60 feet for a
development with 51-250
parking spaces.
10 feet x 50 feet Waiver
Applied
OMC Section

17.14.130
Storage Area A unified storage area of at
least 120 cubic feet/unit in
addition to typical storage
areas.
120 cubic feet/unit OMC Section

17.14.140
Density 15-24 dwelling units/acre =

92.4 units
43 dwelling units/acre
are proposed = 166
units Per Affordable
Housing Provisions of
State Law
General Plan Land
Use Map

7. ANALYSIS AND STATEMENT OF THE ISSUES
Issue 1: Design Review Committee Meeting Feedback
On December 15, 2021, the Design Review Committee (DRC) conducted a review of the proposed City of Orange Printed on 3/3/2022Page 10 of 17
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On December 15, 2021, the Design Review Committee (DRC) conducted a review of the proposed project, where they provided comments relating to the following:
· Tree removal, replacement, size, and distribution
· Height, length, and appearance of fence along Tustin Street · Building design elements
· Privacy and visual impacts to neighboring residents
· Site plan design and building placement
· Building No. 1 shading, placement, and height
· Need for vertical landscaping
· Pedestrian circulation
The DRC generally supported the architectural design of the project and recommended approval to the Planning Commission with the following conditions:
· The existing fencing along the back of the walk at Tustin Street shall be modified to provide two landscape offsets of a minimum of three-foot planter space. · Prior to going to the Planning Commission, the new fence and tree proposals shall be reviewed by the Police and Fire Departments, including fence entries. · Taller stature trees shall be used along Tustin Street and in parking areas. · The massing along the southern end of the eastern edge of Building No. 1 shall be lowered by one story; relocating units to Building 3 is acceptable.

The applicant has subsequently revised their plans incorporating some recommendations by the Committee. The applicant has provided written responses to comments, included as Attachment 15.

Updates and clarification regarding the proposed revisions include the following:

Fencing Along Tustin Street
Concerns were raised by the DRC regarding the appearance and location of the existing 6-foot tall fencing to remain along the Tustin Street frontage. The DRC recommended the installation of fence offsets to help break up the extended length and provide opportunities for the installation of more trees. In an attempt to satisfy this condition, the applicant revised Sheet L-3 (Fence and Wall Plan) to accommodate the fence offsets as directed by the Committee. The revised fence plan was reviewed by the Orange Police and Fire Departments. While the Police Department had no objections, the new fence plan was in conflict with the approved Fire Master Plan. The Fire Department requires an 8-foot clear pathway for laddering around the perimeter of Building 3 and the new offsets encroached into this required area. The applicant has taken the Fire Department comments into consideration and has revised the fence plans once again to address their comments. The project plans (Attachment 16) reflect the location of the fencing along Tustin Street, as approved by the Fire Department.

Taller Stature Trees
The DRC was concerned about the lack of vertical landscaping in relation to the 4-story elevation of Building 3 along the Tustin Street frontage, and the size/stature of the proposed trees within the parking lot areas for shade purposes. In an effort to satisfy this condition, the applicant revised Sheet L-1 (Landscape Plan) to include additional trees along Tustin Street and Fairway Drive. In addition, three 24-inch box size Brisbane Box trees have been replaced with three 36-inch box size London Plane/Chinese Elm trees in the parking lot area adjacent to the northwest corner of the site. The revised landscape plan was reviewed by the Orange Police and Fire Departments. The Police City of Orange Printed on 3/3/2022Page 11 of 17
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revised landscape plan was reviewed by the Orange Police and Fire Departments. The Police Department had no objections; however, the new trees proposed along the Tustin Street and Fairway Drive street frontages were in conflict with the approved Fire Master Plan. Similar to the fencing, the Fire Department requires an 8-foot clear pathway for laddering around the perimeter of Building 3 and the new trees encroached into this required area. The Fire Department required the elimination of some of the new trees, and the submittal plans (Attachment 16) reflect this requirement. The revised plans currently show five Date Palms, one D.D. Blanchard Magnolia, and five Goldenrain trees along the Tustin Street and Fairway Drive street frontages adjacent to Building 3.

Building Massing
The DRC raised concerns regarding the 3-story elevation on the east side of Building 1 as it relates to the 1-story apartment building on the adjacent property and the potential for shading/shadowing and privacy issues. The applicant has since revised the plans by reducing the massing of Building 1 to 2-stories along the eastern edge. The 4 units removed from Building 1 were relocated to the southern edge of Building 3, changing this portion of Building 3 to 4-stories. Staff supports the proposed changes as the 2-story elevation on Building 1 provides a more sensitive interface with the adjacent 1-story neighbors, and the street presence along Tustin is heightened and blends more appropriately with the massing of the adjacent 4-story apartments. In addition, the Shade/Shadow Analysis (Attachment 7) submitted by the applicant concluded that the 2 and 4-story height of Building 1 will not impact the adjacent 1-story neighbors.

Issue 2: Density Bonus, Concessions and Incentives, and Waivers to Development Standards The project includes a density bonus request which utilizes affordable housing provisions of state law to qualify for concessions or incentives, and waivers or reductions to development standards that are needed to make the project financially feasible (See Attachment 4 - Project Pro Forma Summary).

Because the project is 100% affordable, the project qualifies for a substantial increase in density and a reduction in the required parking. In addition, concessions for building height, useable open space (private and common), unit size, as well as waivers to loading space size, fence height within the front yard setback, and motorcycle parking are proposed. The table below shows the R-3 District development standards and the concessions and waivers proposed for the development:

R-3 Development
Standards
Density
Bonus Law
Concessions Waivers
Density 24 dwelling
units/acre
43 dwelling
units/acre
Parking 349 168
Building Height 32 feet - 2 stories 29-53 feet - 2-4
stories
Unit Size (one
bedroom)
600 square feet 584 square feet
Private Open
Space
49-100 square feet
per unit = 8,134-
16,600 square feet
2,583 square feet
total for 63 units
Common Open
Space
250 square
feet/unit = 41,500
square feet
19,701 square feet
Loading Area 10 feet x 60 feet 10 feet x 50 feet
Motorcycle
Parking
300 square feet 0 square feet
Fence Height in
Front Yard
Setback
42 inches tall 48-72 inches
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R-3 Development
Standards
Density
Bonus Law
Concessions Waivers
Density 24 dwelling
units/acre
43 dwelling
units/acre
Parking 349 168
Building Height 32 feet - 2 stories 29-53 feet - 2-4
stories
Unit Size (one
bedroom)
600 square feet 584 square feet
Private Open
Space
49-100 square feet
per unit = 8,134-
16,600 square feet
2,583 square feet
total for 63 units
Common Open
Space
250 square
feet/unit = 41,500
square feet
19,701 square feet
Loading Area 10 feet x 60 feet 10 feet x 50 feet
Motorcycle
Parking
300 square feet 0 square feet
Fence Height in
Front Yard
Setback
42 inches tall 48-72 inches
Density Bonus
The project proposes a 100% affordable senior citizen housing development. The applicant is requesting a density bonus under the Density Bonus Law found in California Government Sections 65915-65918. The amount of density bonus is set based on the percentage of affordable units at each income level. When 100% of the total units (other than the manager’sunits) are restricted to very low, lower and moderate income (maximum 20% moderate), then the applicant may receive an 80% density increase. The project is requesting an 80% density bonus that would increase the project density from 24 dwelling units per acre (the maximum allowed within the R-3 zoning district) to 43 dwelling units per acre.

The increase in density is not expected to impact traffic to and from the site and within the neighborhood of the development. A Preliminary Traffic Analysis (Attachment 11) was conducted for the project, which concluded that the project would generate 141 fewer daily vehicle trips than the existing rehabilitation center use.

Parking
The OMC requires a total of 349 parking spaces for the project (Please refer to Development Standards Table for breakdown). Affordable housing provisions of state law allow 0.5 parking spaces per unit for a development that is 100% affordable, within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development. Parking may be tandem or uncovered. This calculates to a total of 83 required parking spaces. The project is providing 168 parking spaces at a ratio of 1.01 spaces per unit. The applicant will require proposed residents to register vehicles that will be parked on-site, and marketing for the property will specify the number of parking spaces allotted to each unit. The project is also within one-half mile of Bus Route 71 (adjacent to the northwest corner of the site on Tustin Street) that operates at least eight times per day. The applicant has indicated that parking at their other facilities has been appropriate and is confident that parking for this project is sufficient.

Building Height
The OMC allows a maximum building height of 32 feet or 2-stories. The applicant is requesting a concession to construct 4-story buildings at a maximum height of 53 feet.

A Shade and Shadow Analysis (Attachment 7) and Sheets A1.9A - A1.9F of the submittal plans demonstrate that the increase in building height will have no adverse impacts on surrounding properties. In addition, the proposed building height is comparable to the adjacent Chestnut Place and the Harmony Creek apartments.

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Unit Size
The OMC requires one-bedroom units to have a minimum floor area of 600 feet. The project is requesting a concession for all 1-bedroom units to be 584 square feet, which is similar to other existing senior projects developed by the applicant. Staff believes that the 16 square foot reduction will not negatively impact the living area of the proposed units.

Private Open Space
The OMC requires private open space for each unit with a minimum width of 10 feet by 10 feet for decks/patios and 7 feet by 7 feet for balconies. The applicant is requesting a concession for a reduction in the minimum size requirement and the number of private open spaces provided for each unit. The applicant has provided private patios/balconies in 40% of the units (63 units total) which are 7 feet-7 inches by 5 feet-4 inches in size. The reduction in private open space will be mitigated with resident access to the community’sindoor common open space which has been specifically planned for senior tenants and promotes an active and social lifestyle. The community will include indoor amenities such as a community clubroom with kitchen, computer room, media TV, seating areas, game tables, a fitness center, and lobby/lounge area.

Common Open Space
The OMC requires 250 square feet of common open space per unit at the minimum dimensions of 20 feet by 20 feet, which calculates to a total of 41,500 square feet. The applicant is requesting a concession to this requirement and is providing a total of 19,701 square feet (118 square feet per unit) and a minimum of 10 feet by 10 feet in most locations. The project is deficient approximately 21,799 square feet. The community’scommon open space meets the intent of the Code as it has been attractively designed and programmed specifically for the use and enjoyment of the senior tenants and is also comparable to the amount of common open space typecially included with the applicant’sother senior communities. The community will include 5 separate outdoor couryard areas dispersed throughout the site. Outdoor amenities within the courtyards include a dog park, community garden, BBQ areas, lounge and picnic seating, meandering pathways and bench seating.

Loading Area
The OMC requires a loading area that is 10 feet by 60 feet. The applicant is requesting a waiver of this requirement and is providing a loading area that measures 10 feet by 50 feet. The applicant has indicated that because of the proposed reduced size of the senior apartments, smaller moving trucks/vehicles are required. In addition, the proposed loading space size is appropriate for average sized delivery vehicles.

Motorcycle Parking
The OMC requires 300 square feet of motorcycle parking for the project. The applicant is requesting a waiver to exclude motorcycle parking for the project. Because the project is providing 168 parking spaces with a surplus of 85 parking spaces over what state law requires, potential motorcycle parking may occur in the surplus stalls, rather than a designated motorcycle parking area. In addition, the applicant has indicated that the inclusion of motorcycle parking is not typically programmed in their senior communities and has not been a concern with tenants.

Fence Height within the Front Yard Setback
The OMC allows a maximum fence height of 3 feet-6 inches within the front yard setback. The applicant is requesting a waiver to this requirement and is proposing 4 to 6-foot tall fencing along the La Veta Avenue street frontage. The project intends to maintain the existing 6-foot tall (tubular steel City of Orange Printed on 3/3/2022Page 14 of 17
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La Veta Avenue street frontage. The project intends to maintain the existing 6-foot tall (tubular steel with CMU pilasters) fencing along the La Veta frontage and is proposing new 4 to 6-foot tall tubular steel fencing around the perimeter of the dog park. The 6-foot tall open fencing around the perimeter of the development is intended for security, visibility, and leaseability purposes for the community.

Issue 3: Contribution to Regional Housing Needs Allocation (RHNA) The affordability of the proposed project contributes to the identified low- and very-low income housing needs identified in the City’sRHNA and supports implementation of the City’s2021-2029 Housing Element.

City of Orange Housing Needs for 2021-2029 and The Orion Project Income Category (% of County
AMI)
RHNA Number of
Units
The Orion Project Number
of Units
Extremely Low (30% or less)534 10% at 30% = 16.6
Very Low (31 to 50%) 1,067 26% at 50% = 43.16
Low (51 to 80%) 604 26% at 60% = 43.16 38% at
70% = 63.08
Moderate (81% to 120%) 677 0
Above Moderate (over 120%)1,588 0
Total 3,936 166

8. PUBLIC NOTICE
On February 25, 2022, the City sent a Public Hearing Notice to a total of 683 property owners/tenants within a 300-foot radius of the project site and persons specifically requesting notice. The project site has been posted in three locations with the notification on that same date.

9. ENVIRONMENTAL REVIEW
Categorical Exemption: Categorical Exemption: A Memorandum was prepared by the applicant’s environmental consultant (Attachment 6) to evaluate whether the proposed project qualifies for a Categorical Exemption from the California Environmental Quality Act (CEQA). The Memorandum concluded that the proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15332 (Class 32 - Infill Development Projects) because the project meets the following criteria:
a. With the allowed affordable housing concessions and waivers, the project is consistent with the existing General Plan designations, General Plan policies and, applicable zoning designations and regulations.
b. The project is in the City on a site less than five acres and is substantially surrounded by urban uses.
c. The project site has no value as habitat for endangered, rare, or threated species. d. The project has been evaluated for significant effects relating to traffic, noise, air quality, and water quality and no significant effects have been identified.

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e. The site would be adequately served by all required utilities and public services.

In addition, the project would not trigger any exceptions of State CEQA Guidelines 15300.2 based on location, cumulative impacts, significant effects, location near a scenic highway, location on a hazardous waste site, or causing substantial adverse change to a historical resource because the project is not on an environmentally sensitive site, does not contribute to cumulative impacts, will not have a significant effect on the environment, is not near a scenic highway, is not on hazardous waste site, and is not a historical resources site. No environmental public review is required.

10. ADVISORY BOARD ACTION
Staff Review Committee:

The City’sinter-departmental staff review committee (SMART) conducted a review of the project on August 4, 2021 and provided comments. On November 17, 2021, SMART conducted a second review and recommended that the project proceed to the DRC with conditions.

Design Review Committee:

The DRC conducted a review of the project on December 15, 2021 where the DRC provided comments relating to tree removal, replacement size and distribution, fencing height along Tustin Street, building design, privacy and visual impacts to adjacent neighboring residents, site plan design, potential shade impacts of Building 1, and the need for vertical landscaping along Tustin Street as detailed in the Analysis section of this report. The DRC recommended project approval with conditions to the Planning Commission by a 3-1-1 vote. The Staff Report and Minutes of the December 15, 2021 meeting are provided as Attachments 13 and 14 to this report.

11. ATTACHMENTS
· Attachment 1 Planning Commission Resolution No. PC 02-22 · Attachment 2 Vicinity Map
· Attachment 3 Applicant’s Letter of Explanation
· Attachment 4 Project Pro Forma Summary
· Attachment 5 Memo from Applicant Detailing the Need for Requested Density Bonus, Concessions, and Waivers
· Attachment 6 CEQA Memorandum by Helix Environmental Planning · Attachment 7 Shade and Shadow Analysis
· Attachment 8 Arborist Report
· Attachment 9 Historic Resources Assessment
· Attachment 10 Archaeological Report
· Attachment 11 Preliminary Traffic Analysis
· Attachment 12 Parking Demand Analysis for the Existing Casas de Rio Affordable Senior Apartment Development
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· Attachment 13 December 15, 2021 DRC Meeting Staff Report · Attachment 14 December 15, 2021 DRC Meeting Minutes
· Attachment 15 Applicant’s Responses to the December 15, 2021 DRC Meeting Comments · Attachment 16 Project Plans, Date Stamped Received February 22, 2022. Colors and Materials Boards provided at Meeting
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CONDITIONAL USE PERMIT NO. 3146-2I
MAJOR SITE PLAN REVIEW NO. IO47.2I
DESIGN REVIEW NO. 5042-2I
RESOLUTION NO. PC 02-22

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF ORANGB APPROVING CONDITIONAL
usE PERMIT NO. 3146-21, MAJOR SITE PLAN RBVIBW
NO. 1047-21, DESIGN REVIEW NO. 5042-21, AND A

DENSITY BONUS WITH AFFORDABLE HOUSING

CONCESSIONS AND WAIVBRS TO DEVELOPMENT

STANDARDS TO REDEVELOP AN EXISTING
REHABILITATION CENTER SITE WITH A NEW 166.

UNIT AFFORDABLE SENIOR CITIZEN APARTMBNT

COMPLEX AND RBLATED SITE IMPROVEMENTS,
LOCATED AT 18OO E. LA VETA AVENUE/s8s S. TUSTIN
STREET
APPLICANT: USA PROPERTIES FUND INCORPORATED _ LEATHA CLARK Moved by Commissioner Glasgow and seconded by Commissioner Martinez that the following Resolution be adopted:

WHEREAS, the Planning Commission has authority per Orange Municipal Code (OMC) Table 17.08.020, and Sections 17.10.030.C and 17 .13.030 to take action to grant or deny Conditional Use PermitNo. 3146-21, Major Site Plan ReviewNo. 1047-21, Design ReviewNo. 5042-21, and a density bonus with affordable housing concessions and waivers to development standards to redevelop an existing rehabilitation site with a new 166-unit affordable senior citizen apartment complex and related site improvements, located at 1800 E. La Veta Avenue/585 S. Tustin Street; and
WHEREAS, Conditional Use Permit No. 3146-21, Major Site Plan Review No. 1047-21, Design Review No. 5042-21, and a density bonus with affordable housing concessions and waivers to development standards were filed by USA Properties Fund Incorporated - Leatha Clark in accordance with the provisions of the OMC; and WHEREAS, Conditional Use Permit No. 3146-21, Major Site Plan Review No. 1047-21, Design Review No. 5042-21, and a density bonus with affordable housing concessions and waivers to development standards were processed in the time and manner prescribed by state and local law; and
WHEREAS, Conditional Use Permit No. 3146-21, Major Site Plan Review No 1047-27, Design Review No. 5042-21, and a density bonus with affordable housing concessions and 345
Resolution PC 02-22

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Orange City CouncilNovember 28, 2023

Orange City Council
November 28, 2023